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JANUARY â€™11 Vol. II Issue llI
The Path Breaking All New
Ghar ka Brand, Band Bajaaye!!
Private labels are here to stay and to create a stir into the share of the market leaders
Cross-Word 4Pâ€™s Quiz
uzz showcases the Best Marketing Camapigns that took the India by storm in 2010
Dear Readers Succession planning! That's the buzz word today in corporate India and should we say, a 'problemword' for quite a few! Wipro & Patni are the 2 companies that come to mind and the basic problem with both of them is the absence of Gen-next to carry forward the legacy. And this buzz word isn't limited just to Corporate India, its percolated to our BuZZ team as well. One more edition to go and then the editorship baton would move from us to some talented and passionate 'Buzz-er'! And considering the sacking of Wipro's joint CEOs, we - (Ronak & Vinay) the joint editors of magazine are praying that we don't get ousted before our term officially ends! While succession planning would take its course, it's BuZZ- The Markazine that's on course to become a true blue hit in Bschools all over India. This January edition is 'never-before-seen' BuZZ as it covers not just articles but also quizzes, crosswords and an entertaining 'Fun-Zone'! It's always been our endeavour to dish out something new & insightful in every issue that we publish & we say it with utmost confidence & pride that this particular edition takes the cake! Hope you'll enjoy reading it as much as we did while designing it. Happy BuZZing
Editors, Ronak Shah Vinay Jayanthi Designed by Nishchai Nevrekar
Wishing you a Very Happy New Year Ahead!!
Branding lives and Living Brands Gaurav Gutka (IIFT)
Cult Brands Rachita Behl (NMiMS)
11 The Ultimate Pathbreakers Krisnakant Jonnalgadda,Kushal Mehta Nandini Kapoor (NMiMS)
19 Ghar ka Brand, Band Bajaaye!! Kumudini Manda, Krishnakant Jonnalgadda, Rahul Gupta (NMIMS)
25 Cross-Word Team 2010 26
4Pâ€™s Quiz Neelotpal Shukla (NMIMS)
Uday jaipuria Nipun Puri Mohit Gupta Rahul Pahwa Ronak Shah Vinay Jayanthi Naman Agrawal Puneet Chopra Govind R. Prateek Singhi Apurva Nahata Hafiz Nadirshah Tushar Jain Email : firstname.lastname@example.org Contact : +919833415606
By Gaurav Gudhka IIFT
Branding lives and Living Brands
oday Brand is not just an identity of a product or a service or anything that differentiates itself from the competitor and reaps in profit. A Brand has transformed itself to become the identity of the consumer. Gone are the days when a Brand used to highlight a company's offering. Today a Brand focuses on consumers, their emotions, their status and their selfesteem. Customer equity, along with Brand equity is fast gaining importance. Valuing customers is as important as valuing brands as both are said to be mutual beneficiaries. None can work in isolation. Although, the focus has moved from the product to the customer, customer is no more the king, with brands growing bigger and better than ever. Producers are wor king towards converting a want into a need. Pro ducts like a photo copy or a chocolate is known as Xerox and Cadbury in India. That's the power of a brand. TATA is one of the most respected and trusted Brands of our nation and when someone uses a TATA product or service, the person feels dignified; (s)he feels valued. This is the power of Brand 'TATA'. TATAs have worked very hard to lay a strong foundation to the customers' dreams. It symbolises self-esteem when the “onel a k h Nano” is driven by an average middle class who could not afford a car. TATAs have also been a part of Indian culture. Whenever a marriage takes place in India, one of the most common things gifted to the groom is Titan watch. No other brand has been able to take its place. This goes on to say that a brand like TATA has found its place in the hearts of the Indians and has become a part of the culture which in tur n gives a sense of complacency and identity to its users. This is Culture Branding. A Brand symbolises the ideology of the company that relates itself to that of the consumers. It also symbolises benefits and attributes of the products. Disney is not just a film company or a theme park. Disney symbolizes children's entertainment – when you choose Disney, your mind thinks, “If it's Disney, it's good, safe and right for my kids.” Disney is very careful about this image. It will not make films or products,
which are not 100% family oriented. In this extremely competitive world, for a Brand to survive and evolve as the consumers' most preferred choice, it has to fight the cut-throat competition by creating points of differentiation. A Brand must focus on something that will provide its users an identity which is e a s i l y differentiable if n o t superior to that of others. IKEA, one of the m o s ti n n ovative companies of the w o r l d , i s deliv e r i n g excellenc e in terms of i t s functional and well designed furniture line which is absolutely affordable in order to reach as many customers as possible rendering a sense of dignity in them. It symbolises technological superiority with simplicity so that the users feel more valuable. Today's consumers use brands to build their own identities. Some even like to be known by the brands that they use. If your brand can give them that, it will survive, and if the identity takes into account the cultural aspects of the consumers, they will love your brand and make it immortal. Not that it's always a brand that has to strive. These days customers eye the most coveted brands like Apple and Volkswagen to be attached to in order to enjoy a superior status. Market Researchers not only gather demographic information but cultural influences and preferences are also taken into consideration, so that a Brand does not remain just a Brand but become a way of life. Brands need to value the culture, using the uniqueness of target groups to market themselves accordingly. Those who have done that have been very successful like McDonalds. It has proved to be a truly global brand by adopting the cultural differences of different regions to merge it into one. Branding is a dynamic process and everybody is trying to build an eternal Brand. For one to be successful it has to learn to be empathetic and make use of the cultural and emotional aspects and the values attached with the consumers. Branding, today, means branding lives (of its users) which in turn will help a Brand live longer. It's for time to decide who will rule whom. For the moment Brand and Customers stand at par.
CAN BE AVAILED WITHIN YOUR LIFETIME FOR THE REST…. WE'RE THERE
XYZ FUNERAL SERVICES
by Rachita Behl NMiMS
Cult Branding “By the power vested in me, I hereby pronounce you m’bike and rider. You shall, through rough weather and calm, rain and storm be committed to each other, till fate do you apart…” This is a scene enacted in the
way they did everything that was in tandem with the prevailing market needs and trod a path not explored by others. They created strategies and marketing communications that nudged people towards the view that the offering was a fashion statement. The magic was created here. They are undoubtedly “wow” products for the loyal “communities” that they create. The association starts with these messiahs who create a buzz around it and it is the
ms of millio ns of HarleyDavidson owners and aspirers, arguably the most acknowledged global symbol of a cult brand. Harley Davidson, Volkswagon Beetle, Apple, Starbucks... what makes some brands transcend all boundaries and carve a deep-rooted place in the minds and hearts of people? What makes them a way of life? What makes them stick out from the mainline ones? How do they manage to break the rules? Before we delve into that, let’s reason out why cult brands exist. For the simple reason that people like to be different and at the same time, be part of a group that acts different (read cult). This targeted cult then is willing to put in extraordinary efforts to acquire and use the brand. We are talking about unflinching loyalty over a sustained period of time. And no, it does not stop there. The cult followers are willing to publicly demonstr ate their passion for the brand in an extraordin ary manner. Now, brilliant brands don't happen when one fine morning someone says, "OK, I want to create a cult brand." So what does it take to create one? All cult brands began life as products, sometimes even unique like the iPod, with huge potential. Along the
ado pted by a larger group of people (but not mass). Trust soon transforms into devotion. But don’t be mistaken, cult brands do not require large marketing spends. Instead, an incredible amount of money is spent on maintaining the brand. It is estimated that 50% of the business of a cult brand comes from its community members and an additional 20% from the buzz created by the proselytiser. Since buzz works for a cult brand, the marketing strategy is shrewdly aimed at perpetuating the buzz among community members who, on their own volition, take on the onus of building the brand. A prime example of this is the Harley-Davidson whose community members have come together to form the Harley Owners Group (HOG), which boasts of over a million members. HOG organises training courses, rides, social events and charity fund-raisers resulting in stronger loyalty among HOG members besides attracting newer members to its fold.
What else does Harley do to maintain its cult status? Harley never
overp roduces. It keeps the supply low and the demand high. After all, not everybody can buy into the cult. If everybody did, it wouldn't be a cult. Turn the clock back because the story of the cult that is HarleyDavidson is worth telling a million times over. It has survived nine recessions, the Great Depression and many wars. It was a symbol of machismo until the Japanese arrived with Kawasaki, Yamaha and Honda. Harley faced a setback but soon got back on its feet, not just learning total quality management from them but also taking a giant leap ahead. The strategy of Harley-Davidson was to sell a complete Harley experience and not just the bike. And they did this with what can be called the pillars of their cult-open rebellion, unbridled love for the open
road, individualism HOG that I spoke from this very Harley-Davidson bike, duh. But is only in “cool” Again, don’t be seemingly categories furniture of a cult such as IKEA beco cura
and empowerment. of earlier spawned idea. is ultra-cool. It’s a a cult brand born categories? mistaken. Even dull like can boast brand, IKEA. has me a tor of people' s lifestyles, if not their lives. It is a trusted one-stop sanctuary for coolness; an environment people can enter and immediately be part of a likeminded cost and design global tribe. Let’s shift our focus to Indian brands now. Do we or can we have cult brands that are Indian? The truth is we cannot boast of a single, true cult brand. Rasna came partially close to being one. It was immensely popular with kids who even aped the little girl in the ad, copying her style of dressing and her haircut. But even that was not really a cult brand. Then, why not? Sure, we have the managerial expertise and marketing brilliance to manage and create brands. Indian brands have the potential, but what management and marketers behind that brand lack is the risk-taking mentality and understandin g of the pote ntial pay-
off. Since the first and foremost rule cult branding is "dare to be different", companies need to shake things up when everyone at the organisation is feeling most cosy. In addition, the top management should be emotionally attached to brand building, not just chase top-line and
bottom-line targets. Can the fact that cult brands are not â€œinâ€? in India be attributed to the Indian consumers too? Arguably, yes. We, as a society, do not encourage rebels, people who stand out from the crowd while cult brands draw their cons umers with just the opp osite proposition. True, our soci al and cultur al values are consta ntly under goi ng an overhaul but the basic tenets are still intact. Doe s it also have something to do with Ind ia being a very diverse nation? This is another interesting line of thought propounded by many gurus in the field of marketing. Cult following typically happens when a country has a large proportion of people following a common lifestyle. Diversity goes against this notion. In our country, brands
that could qualify for cult status are usually confined to a specific region where local socio-cultural, linguistic or religious factors are the fountainhead of the appeal. India is far too mysterious and varied to let a subculture revolution gain momentum. Looking beyond, we may not be aficionados when it comes to a particular product but we are a personalitystruck race. In almost all walks of life, we find celebrities that have a cult following. Why, Sachin Tendulkar is as good as a cult brand can get. Not to mention Indian Cinema. The one thing in India that cuts across the barriers of its diversity. With the momentous cultural and demographic shifts happening in India and the ever-increasing power of the Internet, it remains to be seen whether we will get to see Indian consumers actively forming larger communities around their brands, elevating the status of the brand to a cult.
The single most wasteful thing you can do in marketing is try to change a mind.- Al Ries and Jack Trout "I am one who believes that one of the greatest dangers of advertising is not that of misleading people, but that of boring them to death." -Leo Burnett "Asked about the power of advertising in research surveys, most agree that it works, but not on them." Eric Clark “Any business enterprise has two, and only two basic functions – Marketing and Innovation” – Peter F. Drucker “No great marketing decisions have ever been made on qualitative data.” – John Scully (Former CEO of Apple and former President of PepsiCo “Competition brings out the best in products and the worst in men.”- David Sarnoff Half the money I spend on advertising is wasted, and the problem is I do not know which half -Lord Leverhulme, British founder of Unilever “The problem is that once a consumer has bought someone else's story and believes that lie, persuading the consumer to switch is the same as persuading him to admit he was wrong. And people hate admitting that they're wrong.” -Seth Godin Don't overlook the importance of worldwide thinking. A company that keeps its eye on Tom, Dick, and Harry is going to miss Pierre, Hans, and Yoshio. -Al Ries
By Krisnakant Jonnalgadda, Kushal Mehta,Nandini Kapoor from NMiMS
The Ultimate Pathbreakers There come days when you wake up to absorb your daily dosage of morning news, and while you sip your tea intermittently, the cup stops right before it can pour the tea in because suddenly a dyna- has exploded in the –mite. It is something either too good and catchy or something too slip and shoddy which catches your attention. You either have the first (and usually the last) smile on your face, or you sneer (definitely not your last)
now such is their presence that they have made their way out of the idiot box and into little arms and cradles and as papers on digital and real walls. Because of this crossindustry presence, ZooZoos have contributed to Vodafone's revenues from multiple angles. Revenue in the three months ended June 30, 2009 rose to 10.7 billion pounds ($17.7 billion), in line with analyst estimates, clearly proving that the ad has contributed to this. Vodafone chief executive Vittorio Colao said that its total communications strategy was delivering well, with group data revenue up 19 per cent and fixed line revenue 7 per cent higher than last year's comparative period. The Vodafone CEO further stated that free cash flow generation was strong at £1.9 billion, up 21 per cent. and flip the channel to some other. We give 9 you of those 'smiles' all together, from the 'A' to the 'Z'!
First name - ZOO Last name – ZOO! What is white, is all about being round, is one of the most popular 'creatures' in the country, has the same first and last name, brings a smile on your weather(read: assignments/work) beaten faces every time it barges into the now multi-million pixels filling your television sets? Mr. & Ms. Zoo Zoo ! One of the most phenomenal success stories in the advertising industry (courtesy Ogilvy), ZooZoos are almost a rage and has helped Vodafone strengthen its position in the industry from the time they were born during IPL2. The ZooZoos were 'Happy to Help' Vodafone and
Harit Nagpal, chief e t i n g offi
cer for Vodafone India, said that Vodafone has been acquiring customers at a very fast pace, but a large number of them had been unaware of the range of services it offered. Since media spends and visibility for brands peaked during the IPL, Vodafone wanted to take advantage of it. The brand was in need of an idea that would work doubly hard, as it was planning to spend some four months' worth of marketing monies in one month. Vodafone had briefed its agency, Ogilvy India, to create uncommon characters â€“ a common thread to link the ads in the campaign together. And thus, the Zoozoo was born. The oligopolistic market Vodafone was in, was stirred and shaken, and the Martini was sweet indeed.
All of a sudden, beauty alerts were made by ZooZoos with red polka dotted scarfs on the head, love tips were creeping into inboxes thanks to the appeal generated by the 'cutest couple on the planet' 30 second ads, and even your grandmothers were reading bhajans out of inboxes from smses sent by ZooZoo baba, via the bhakti alert VAS. Life went beyond the 5_ _ _ _ numbers now!
SELL-ULAR SORCERY There was this job interview which was about to take place in one of the million educational hubs in the country. As always, somehow, an 'idiot' was shortlisted for the final round, and surprised himself, sat down in front of the 3
13 member panel, both sides of the table bemused. The first (and last) question – 'And your name is?' The answer – '9923123149' The job was his! What an IDEA sirjee! The 'sirjee' series of advertisements took the industry with a different kind of tempest. Almost all its ads had some k i n d o f m e s s a g e imbibed in them, and with the kind of delivery it was put forth, the phenomenon was taken to a different floor altogether. Riots were quelled by sarpanchs by prohibiting addressing others by names and instead had to do so by their phone numbers. The message, both social and corporate, was loud and clear. IDEA was here to stay. IDEA continued on this path with advertisements
The growth of the Telecom sector in India has been phenomenal and so has the communication strategy used by its major players. We owe some of the best and clutter breaking advertisements to this sector. Airtel with “Express Yourself”, Idea with “an idea can change your life” has created exceptional brand recall and loyalty. Virgin's “think hatke” is really hatke. Be it television, radio or print media, every medium is flooded with their ads. Cricket matches, reality shows,
emphasizing rural education, greater network coverage (poor monkey!), and focused even on its women's card options (women could receive beauty alerts, safety advices and even the option to call with zero balance in cases of emergency). The concept was taken beyond cellular services and ' O o n g l e e Cricket' was the frontrunner in this, being a rampage among various brackets of the masses. Advertisements of a cellular provider went beyond the ever so stagnant and ever so stale son-going-away-parents-calling-late-at-night-son's-on-a-
cultural fests at colleges, they are EVERYWHERE! So what could a new player like Aircel do to get a bite of the apple that these players are so happily munching on? Well for starters, they could grab on to any media that is not currently ruled by the kings. And t h i s i s exactly what Aircel did. Aircel was launched in Maharashtra in 2009 and came to be known for its variety of innovations and attractive outdoor promotions. Be it the live IPL neon scoreboard, or the projection of logo on Gateway of India, they managed to
train-son's-happy-parents-happy 'soap'y boredoms. The messages were lucid and straight. They had a much wider outlook than before, and had attained immunity against ads leveraging on the 'soft serve'. IDEA had de-faced the stagnancy and re-faced the future. What an IDEA sirjee !
The time Aircel kept the city 'floating':
14 get their share of visibility. Before Aircel, outdoor advertising was known to comprise of billboards, posters, neon signs and even sky writing, for those extravagant types! But the 'Out-Of-Home' (OOH) innovation executed by Aircel in the Mumbai monsoons 2009 surely ranks among the very best innovations. In a 'one of its kind' campaign, a raft was put up on one of the billboards which could be used in case of flooding. The caption read “In case of emergency, CUT ROPE”. When the raft was put up before the monsoons, it did not make much sense. But once the 'rope was cut', on July 13, 2009 and the raft came in handy, the message was clear: Aircel's customer support had gone beyond cell phone reception. Rather than selling just a service, Aircel's marketing provided real value when it mattered the most. Beyond being an excellent example of using cause marketing to build customer loyalty, Aircel's novel OOH marketing idea earned for them viewership (in local and national dailies) worth millions, all for the price of just one billboard and a rudimentary raft! The publicity was spellbinding! For the innovation being functional, well when have a few extra Brownie points hurt anyone!
Tornado in a teacup – Time to wake up! th
9 December - Your first sip in the morning out of a cup containing a hot concoction of fermented leaves and milk and sugar. It's all that took up to wake up. You go to work, settle down in your chair, order another one of those hot concoctions, turn on the news on a dusty radio at one corner of the table, and listen to the latest about the local elections. Your concoction arrives, so does your first client for the day. You push him around a bit because he's just not getting your 'message'. You feel it's the time to tell him directly. You say you need some 'chai pani'. A green cup with 'Tata Tea' written on it is banged on your table, and you realize you're screwed. 'Jaago re'! Wrapped in lapels of dark humour and pin-pointed delivery, the Jaago Re camp
aign was one which stirred all and sundry in this corruption bitten country of ours. Politicians and babus were open targets and the directness was the most crucial tool in the armour for the campaign. All of a sudden the country was aware of its responsibilities (wonder what it was upto till then. Had not thou drunk thy tea?). Having secured a steady and infallible popular support, Tata Tea Limited relaunched its website with a new project to tackle societal reform, starting with corruption. 'Jaago Re' launched a drive against corruption by declaring December 9th as Anti- Corruption Day. This move aimed to make the elimination of corruption a national reality. As seen before, the advertisements were unerringly precise and wholly identifiable and livened up with quirky slogans that tickled t h e senses and made room for itself in the viewer's psyche. And the
campaign was not alone. With the support of sponsors who strongly believed in the power of participatory democracy and various outreach partners, under the aegis of a stellar advisory body consisting of Mr. N. R . Naraya n a Mur
15 thy (Chief Mentor, Infosys), Mr. T S Krishnamurthy (Ex Chief Election Commissioner), Mr. Tariq Ansari (Midday Group) and Mr. Rakeysh Omprakash Mehra (Filmmaker and Director, Rang De Basanti), 'Jaago Re' as a wind of change was here to stay, permanently rustling away dead leaves from branches to make way for the new.
Almost the same packaging Catering to the same customer segment Almost similar prices Any promotional strategy you employ can be easily emulated
The question was very much there in the face. Why tea? The answer is right there too. Tea is what almost every Indian laughs, argues, discusses cricket, politics, movies over. With that kind of an impregnable platform at hand, the campaign penetrated the lackadaisical attitude of the average Indian and now has over 22700 people awakened
Then HOW are you different from your competitor?
on its website. For once, this was not an advertisement whose prime aim was to boost sales. It was a campaign which was hell bent on fighting corruption and ignorance head on and that too, in public and with the public. From various ways people can accept bribes ('koi sharma ke khaata hai to koi chup ke') to sleeping away watching movies on election day, ' Jaago re' is a campaign determined to make a difference. Hope you've had your cup of tea.
B i n g o 'BOING' !
Basically the same product
The secret lies in the way the ever evasive HOW communicates with the WHERE, and WHEN! About 40% of the Indian Population constitutes the middle class -that is about 40% of a billion people! This is the
segment that invariably, and understandably, wants more and more value for money. The task - To tell this segment that Bingo premium salted potato chips was offering 25% extra chips in every Rs.5 pack, and tell them in a manner that they sit up, take notice, get that knock on the head, and say-Bingo, that's the one! Amidst all the massive promotional advertising, the task wasn't easy. There was everyone and anyone advertising everywhere and anywhere. From departmental stores to the nukkad teastall, 'Uncles' were everywhere, getting 'Laid' left, right and centre. Not just the whereabouts, but the
16 how-abouts had to be some example never set. The train of thought wandered around aimlessly till it made its stop- The Indian Railways. On the Public Address System of the Indian Railways, the following announcement was heard "Yaatrigan kripya dhyaan de, Mysore se Tirupati jaane waali 116 Temple Express apne nirdharit samay se 7 ghante ki deri se chal rahi hai, aur jaise hi gaadi ke engine driver bingo premium salted ka pack khana khatam karenge waise hi gadi platform number 8 se rawana hogi. Is asuvidha ke liye hume khed hai lekin kya karen, bingo p s mein poore 25% zada chips hain jisko khane mein zada waqt lagta hai. dhanya waad.
First there's a blue ocean, then there's a red ocean. Maybe sometime in the future there will other oceans with all different colours you can find. Even then, the marketing strategy to expand will still be the same. Get new customers and get every commoner to feel exclusive! That is the difference between Blackberry and Nokia. Everyone from your parents, your teachers, your boss, to
BOING! Bingo premium salted potato chips - No Confusion. Great Combination." The announcement seemed to be a regular one till the signature 'BOING' came up. Along with aro using over a million hearty laughs, this also led to a 32% increase in their volume sales. Their logic was simple. Around 11 million people travel in the railways every day and a majority of the trains are inevitably running late. The peo ple, inevitably, wait for long hours at the railway station and the occasional munch is inevitable. The pakodas and chai have long stopped being favourites and the impatiently waiting travelers needed something
your chauffeur, even your house help, has Nokia. But 'BlackBerry'- the name was synonymous to 'exclusivity', it was for a privileged class, not everyone can afford it and it always had its share of corner-of-the-eye glances on the bus stop and the 'oohs' and 'aahs' amongst your pals. As is natural, when a brand is successful, there is always that temptation to make more and more by repositioning and targeting unconventional prospects. Vodafone's new plan for its Blackberry users seems to do just that. The campaign use d is as unique as BB, and as simple, and as smart as Vodafone's ads have always been. The advertisement starts with 5 professionally dressed-up guys singing (big deal!). Slowly people of all classes
new. The 'BOING' was exactly what they needed. The job was done. The train had left the station. BINGO!
We're the BlackBerry boys... and there are a lot of us !
17 begin to join in, celebrating BlackBerry with the jingle. The professionals realize that they are no more exclusive in ownership and that more and more people can now sing the same song! The message: RIM services aren't just for the suits and suitors! But, this new positioning - was it a clearly thought strategy or was it just an inevitable phenomenon? Was it a strategy to avoid the conundrum of the ban that could have been imposed on RIM services- so what if everyone is crying about banning BB services in India, let's increase our reach, and then let the people speak for us. Or was it plain inevitable? Blackberry used to be exclusive! Today, not just the executives, but a lot of youngsters are using it too, and cherishing it. A few year s ago, owning a Blackberry was a matter of pride, but its fission from being elite to mass has already begun. It has already lost its 'for the elite' status in the West, and in India, there are innumerable clones and look-alikes available. Blackberry needs to climb out of its chesterfield, and looks at 'furniture' beyond the old oaks and mahogany trunks. The move is on and it needs to keep moving. The Blackberry boys are increasing in number thick and fast, and the executives won't be exclusive anymore. Blackberry is here, and so are the 'not so exclusive' takers!
Volkswagen Vento - A Vent for New Age advertising 21st September 2010 wasn't just any other day. It was special. It was the day that cats learned to bark, trees learnt to walk, boys learnt to listen and girls learnt to stay silent. That was taking it a bit too far it seems. After all we can't think of getting our hands into something that even the Almighty has given up on. st But 21 September,2010 was certainly a special day because it marked a new beginning in the way advertising was ever done in our country. For the first time, we had a talking print ad of Volkswagen Vento .This ingenious attempt was path breaking in many ways as it was the first of its kind in the entire world.
For those who believe that Ignorance is bliss and missed seeing the ad, here's a brief recap of itAround 2.2 million copies of the national daily The Times of India carried with them a weapon- not of destruction, but of advertising revolution. A small light sensitive audio device that read out the ad of Volkswagen Vento to the readers. Some were shocked, some amused, some simply amazed. But one thing was common- it became the topic of all discussions and got Volkswagen exactly the attention it was looking out for. Volkswagen got its share of accolades and brickbats for this endeavor that took them six months to execute. Volkswagen who already enjoys the legacy of being an innovative marketer, took things to a completely new level, setting a new benchmark for the industry. They carried forth the movement with some really interesting advertising of the Vento campaign by exploring Out of Home Advertising effectively.
Cadbury: sweating it out for the Sweet Tooth Picture this- a boy sneaks out of his room to hide the chocolate so that his father doesn't finish it up. A grandpa pouncing on the packet of chocolates once the daughterin-law gets it from the kirana store, two grown up brothers still fighting over a bar of chocolate in front of their kids. These pictures were very difficult to fathom in the salad days when chocolate was promoted in our country. The golden rule wasChocolate is meant for kids! Well Ogilvy begged to differ and so did their esteemed clients Cadbury India who over the
18 years have positioned chocolates as a product that can be tempting across all age segments and the craving for it isn't incarcerated to a particular segment.
They chose a highly popular yet an absolutely unconventional brand ambassador in the form of Mr.
Amitabh Bachchan. In retrospect one thinks, there couldn't have been a better person for this mission. With his charismatic personality and phenomenal acting, he could mould himself into any character and make people believe that it's not a cardinal sin to crave for a chocolate. So shed all guilt. With themes that ranged from passing of exams to celebration of festivals, importance of the first day of the month which brings salary at home to the simple idea of starting a good work with sweets, Cadbury ensured they cater to small moments of happiness that form an integral form of the Indian way of life. They did it with a subtle undertone of humour and entertainment. This got them whopping success. After all who can forget classic captions like “Pappu Paas Ho gaya”, “Kuch Meetha Ho Jaaye”, “Meetha Hai khaana, aaj pehli taarekh hai” and the recent “Shubh Aarambh”. Cadbury is slowly but strongly moving towards a space that has been enjoyed for ages by the traditional sweets. With constant reports of adulteration of sweets, one wonders if the day is far enough.
Surf Excel- Blessed to have the blemishes. It is highly improbable to have thought that Surf, who made us believe for decades that it is our weapon against spots or stains, would change its course and tell us right on our face - “Daag Acche hai”. What a slap on the face. What a terrible setback for Lalitaji whose credibility had been put on the burner by her own people. How much her poor soul would be struggling when she came to know that people whom she represented themselves did a volte face.
We wonder if she might sue them now. Well before the anxious few lose out on the humour, let us categorically state how beautifully has Surf changed the entire perception of spots and stains. They used to be on the other end of the spectrum when they used to show themselves as the nemesis of stains and showed this entire altercation as nothing less than a war. Things haven't changed much, except the tone. Now, they simply say that even the stains are good on occasions and cleaning them should not be an issue at all as Surf will take care of it. This simple yet powerful positioning has caught on tremendous popularity with people. The campaign showed kids playing freely without any concern of the stains. They also struck an emotional chord by showing children helping others without being deterred by the worry of spots and stains. They gave a new found image to the perception and gave it a feel good factor to this product which was otherwise promoted on similar lines. It is because of this reason that it won millions of hearts and millions of smiles.
19 By Kumudini Manda, Krishnakant Jonnalgadda,Rahul Gupta NMIMS, Mumbai
GHAR KA BRAND, BAND BAJAAYE!!
he advent of Foreign Direct Investment (if approved by the commerce ministry) in multi brand retail would certainly be a game changer of how the retail industry operates in India. The industry has already seen a major transition in India from the ‘mom and pop’ stores to the big retail outlets. The products which are being retailed are in themselves changing from commodity products to luxury products. But the change which even the manufacturers did not see coming was the boom of brands which are manufactured (or outsourced) and sold by the retailers themselves. To sell these products they come with various brands and these are called In House brands. If you look at the FMCG industry and the
monthly spend on advertisements, you would realize the importance of brand recall in the minds of customers while shopping. And before visiting your favorite retail outlet you already have few names in your mind and sometimes one can be sacrificed for other. But just imagine if you see products which you never heard of but are of a similar type, kept at a place closer to your
favorite brands, and most of the times priced below the product you want. Isn’t that an enticing proposition?? You step into any major multi brand retail outlet and you definitely cannot avoid the existence of such products. Let’s explain this with the help of a few examples and then it would make more sense.
Battle Royale and its SpartansThe StageEvery great fighter pilot needs an equally able wingman to watch his back during a combat mission. While the pilot may go for the kill to obliterate the enemy, it’s the wingman who ensures that the tables aren’t turned. Imagine if the wingman himself decides to don the role of a parallel pilot and both focus on the offensive. Retail sector undergoes a similar kind
of situation when the retailers(Wingmen) decide to go n the battle on their own and refuse to play the role of just watching the back of established brands. This surely is turning into a Battle Royale and the Indian Retail Sector is witnessing this great battle for power, authority and of course market share. With armours of pricing, quality, distribution and brand recall, these
20 Spartans are certainly leaving no stones unturned to get their space- right from the proper shelf to the consumer’s mind and through that to his/her home. With redefinition of the rules, this Battle Royale seems to be in no mood of a truce in the near future. This quest is getting tighter and more exciting than the one for the Holy Grail. The marketers who are coming up with innovative ways to position themselves and carve a niche in their respective segment. Being pupils of this exciting world, let’s put out pupils to some work by focusing on who are the major players across segments shaping the Private Labels phenomenon in the Indian Retail Story.
the bandwagon of Private Labels by introduction of brands like John Miller, Tasty Treat, Fresh n Pure, Koryo, Clean mate etc. They tapped onto the ongoing change in the perception of the customers. Studies kept showing that most of them did not mind purchasing the private labels as it brought their monthly consumption bill down by 8-10% depending on the product category. Another smart ploy that they adopted was to ensure that the product mix was determined as per the local flavors and demand scenario. This customization gave a better purview of the target groups in specific regions and hence created a better reception. Thus ,with 55 private labels in their kitty and possibly many more additions in the time to come, Future Group looks all set to heat up this battle and not bow down to the other warriors.
The WarriorsThere is certainly the fundamental question as to
why do retail majors get into setting up their own brands. The answer to this question lies in the fact that the margins in private labels are really high. The margins range between 10-15% in the FMCG segment and as high as 40-60% in the apparel segment. This fact has clearly allured the entry of more and more retailers into breaking the mould of just being the organizers of the show; they now want to be the distributors of the show “The Great Indian Retail Saga”.
Future Group“Thou lay the path that the world shall follow, thou unearth the pot of Gold that others shall try to swallow”. The flag-bearers of the Indian Retail Story, the Future Group with Pantaloon Retail and the Big Bazaar chain revolutionized the way organized retail spread its roots in the country. They worked on very effective pricing models and an effective back end distribution to come up with the best offers for the customers. This gave them instant attention in the retail space. The stores were astutely designed, without sprinkling drops of opulence. This facilitated a wider target group and especially a new one stop junction for the growing Indian Middle Class. They were in fact the first one to get into
They had a rough start in the retail space. Everyone around seemed to be opposing them. They were looked at as the capitalist major sharks who would swallow all the small fish of the ocean and establish their rule. The outcry raised doubts over their future and expert pundits had predicted that Mukesh Ambani and his team have burnt their fingers. But, they weren’t bogged down. They fought and fought gallantly. Today Reliance Retail, with major arms like Reliance Fresh( Reliance Food and Dair y Life) and Reliance Trends, has shaped into a major payer in the Indian Retail space. They own around 50
private labels across product categories which have improved customer loyalty towards their stores. With the
21 solid backing of the Reliance group, they are certainly a force to reckon with for both the established players as well as other retail majors.
Shopper’s Stop Style never goes out of style and one of the first players to educate Indians about this was a strong retail chainShopper’s Stop. They housed the best of brands in their outlets and created a solid positioning among the increasing fashion conscious population of youngsters. They joined the momentum themselves when they launched their in-house brands like STOP, Acropolis, Kashish , Life, Vettorio Fratini and Elliza Donatein. This wide range in the apparel segment, not only gave the customers more options to choose from, but gave Shoppers’ Stop a major boost in their record books as well. There are many other major players such as Aditya Birla Retail, Koutons, Croma, Spencer’s etc who are leaving no stones unturned to mark their strong presence in this segment of private labels. In fact, a study has shown that the retail majors are planning to use as much as 40-50% of their store space in positioning their in-house brands. They work solely on the principle of retail visibility and thus, would try and gain as much attention as possible of the customer.
They have been very clear on their positioning of having a quality which is at par with the national brands. Competitive Pricing- Since they do not have to spend much on their advertising and other Above the Line promotion, they save a lot of capital which is reinvested in setting highly competitive prices. Highly customized product mix is an avenue that has led to creation of a product basket tailor-made for specific regions according to local tastes.
Weaknesses They do not enjoy the instant “Top of the Mind Recall” in a consumer’s mind which can be a deterrent to compete against the market leader. The distribution is limited to the retail stores which led to their inception. Thus, they are yet to cover a major segment of the target groups. They are often perceived as imitations of national brands which is corroborated with their packaging style and names( Compare Honey Circles and Honey Rings, Masti Angles with Mad Angles)
Dissection pointIt is time to take out our scalpels and dissect the entire concept of private labels in the country and why is the phenomenon picking up compared to the established national brands. Let us try by doing a small SWOT on one of the better performing inhouse brand- Tasty Treat of the Future Group.
Strengths It comes with the strong credibility of the Future Group who has donned the role of a common man’s shopping junction very effectively. The Group has been using innovative marketing and promotional techniques to lure people to try out Tasty Treat. This helped them a lot in the initial positioning days. High retail visibility- Right from the entry point of the store to the entry point of a particular segment, the customer is bombarded with the idea of the private labels. This does have an implication on the purchasing decision. Maintenance of quality standards has ensured that they do not sway on the side of the unorganized retail.
OpportunitiesThe initial signs look highly encouraging and the future does beckon exciting time for expansion. An opportunity to Co—Brand with a national player can be a strategy that can be forayed into the future. This could provide the perfect launchpad for them to mark their presence. The higher margins obtained can be reinvested in coming up with better variants for product mixes and thus improve on the overall basket that the company provides.
Threats It is difficult to keep up pace with the multiple variants that the national players come up with. If the retail majors decide to go ahead with so many variants, the branding of multitudinous products becomes an onerous task. With the entrant of more and more retail players and the entry of international players like Wal-Mart, the
experiences it in real life. A marketing student can certainly understand the concepts and brilliant ideas that have taken the world by storm by sitting in the class and googling, but the appreciation of this acumen comes only when he steps into the field and observes the situation by himself. We want to be kings of the jungle in the future, for that we decided to step into the lion’s den itself to learn the tricks of the trade. A trip to one of the successful Food Bazaar outlets in Mumbai gave us insights about why private labels have been doing really well and how various strategies are applied to influence the buying behavior of the customers. Food Bazaar has three major private labels- ‘Tasty Treat’ and ‘Fresh n Pure’ in the dairy, food and beverages segment and ‘Clean Mate’ in the household division. Their main line of focus currently is on gaining more on the food and beverages segment. A visit to the store corroborates this hypothesis. The entry point of the store is adorned with a cutout of the latest offer that the inhouse brands have to offer. This catches instant attention
battle of private labels is going to become more fierce. Any bad instance with the brand can lead to a bad name for the retail store as well. This co-branding which works as a strength to establish the brand can lead to a cascading damage in case of a problem arriving. A strong pull advertising strategy by national players can hamper the growth of the private labels.
Only those who play the game, can frame the rulesA kid understands the importance of balance only when he falls down, learns the importance of people only when he is alone, learns the power of knowledge only when he
of the customer as it has been strategically placed near the bag submission counter. Thus, a small halt or wait here is sufficient to look at the cutout. Strike One!
23 are very close to the entry point in a particular segment and which are placed at the eye level. The picture clearly shows how the Tasty Treat products are stacked at the entry point of the segment and at the eye level, whereas the Kellog’s products are kept below the eye level. The proposition of Tasty Treat is further strengthened by the price offer display just below it, which is an alluring factor for bargain hunters and may even lead to switch of value seekers.
The floor of the store has labels attached to it which serve the same purpose of informing the customer about tasty treat and its range of products. This is supplemented by a banner of Tasty Treat clearly elucidating on the discount options. So within an area of 100 sq. meters around the entry point only, the store bombards you with its in-house brands. Strike two!
This is further enhanced by the packaging of the brands, which is on similar lines with the established players. Fancy this, Tasty Treat has a brand Honey Circles which comes in a bright yellow package(with a Disney character’s picture) and is placed at the entry point of this segment. This is followed by Kellog’s Honey Loops which has the exact yellow packaging (with a bee’s animated character’s picture). Different schools of
The retail story has seen tremendous growth for two primary reasons-one is the customer gets an option to weigh all the options in hand and then make a decision accordingly. Second, due to this growing competition, prices have become highly competitive and even the retail stores keep coming up with special prices to keep their own competitive advantage. This has led to great competition in the aspect of gaining the shelf space in a Segment
Tasty Treat Brand Price
Competitor name and Price
Corn Flakes 475 gms
Rs 130/- cut down to Rs 111/-
Kellog’s cornflakes Rs 125/-
Chips (65 gms)
Masti Angles Rs Bingo Mad Angles Rs 10/10/-(85 gms)
Bhujia Sev(350 gms)
Haldiram’s Rs 65/-
retail store. This competition has become more intense with the entry of private labels on the shelves. Thus, the retail store has to strategically place their own brands without disrupting the relations with the behemoths of the industry. In case of Tasty Treat, it is highly evident that they work a lot on their retail visibility by gaining shelf spaces which
thought would have different contentions over this move, but it certainly can’t be a mere coincidence. Strike three! “Beauty lies in the eyes of the beholder. His specs, in the hands of the marketer.” The phenomenon explained above couldn’t have been summarized in better words. A common perception about inhouse brands is the fact that they are not priced as much as the established brands. This perception was not entirely contradicted, but got a new dimension on the visit to the store. They were priced strategically similar to the major brands, and even more on certain occasions. Fancy the example of Kellog’s Cornflakes 475 grams packet being priced at Rs.125 and Tasty Treat (similar flavor) is priced at Rs.130. This does come across as a big surprise, but the answer to this unusual scenario was found in the store itself. They usually have special pricing offers for their private labels, which is promoted in the shelves. Thus,
24 the final price of Rs. 111 catches immediate attention of the customers and hence certainly improves the chances of getting purchased. Our team compared the price of three major commodities and the results were as followsThis was a revelation for us in many ways as there were many products like this where the inhouse brands we priced higher than the national brands, but the discounting was astutely done with special prices and promotional offers. Our chat with the store manager had a lot of interesting insights. Few of the excerpts from the interview are given belowHe very categorically stated that the main intention of the private labels of Food Bazaar(Tasty Treat, Fresh n Pure and Clean Mate) was not to dethrone the behemoths who are ruling the sector, but the intent is to fill the void of a more cost effective and good quality product. They save a lot on their advertising costs and hence can invest that capital into in-store promotion activities. Thus ,Food Bazaar does get into endeavors like Free Sampling and Tasting on Wednesdays which gives them the double benefit of crowd pulling in stores as well as more exposure for the private labels. On the choice of manufacturers, he said that they do not compromise on the quality and go on partnering with the manufacturers who are working with the market leaders. Without giving away the obvious fact, he did say that a similar line of packaging does help in the initial ambush but over a period of time, people do start taking notice of their inhouse brands and do ask for it. As far as managing the shelf space is concerned, they have been given the decentralized power of installing additional shelves to accommodate the private brands, mostly determined by demand of the particular location. Talking about the future, he said that even though we have limited distribution network and we donâ€™t outsource to other stores, it is a proposition that may be looked into in the future based on the changing trends. Right now, the idea is to bridge in the gap between the unorganized sector and the established bellwethers, plus the margins always keep the smiles flowing. He elaborated further saying that it is easier to penetrate in the segments which evokes impulsive buy. Thus, if a customer is not getting a Laysâ€™ in the store, he wouldnâ€™t mind picking up Tasty Treat instead. This is how they choose the product categories across which they are spreading the roots of private labels.
Conclusion and VerdictThere is no second thought over the fact that private labels are here to stay and to create a stir into the share of the market leaders. This hole in their pocket would certainly ease out the pockets of the customers and we are sure with the kind of competitive pricing that has been introduced, the customers have reasons to celebrate. As a marketer of an FMCG company who has found this new competitor who is spreading roots quickly, the pull strategy needs to get a bit more stronger because their unstoppable force is certainly meeting more and more immovable objects. The collision may certainly lead to a BIG BANG!! If Ghar Ka Bhedi led to the demolition of Lanka, here the Ghar ka brand of the retailers is certainly moving in the same direction to spell trouble for the national players.
25 Churn CrossWord
3 4Ps 5 Build,Hold,Harvest,Divest 6 Introduction,Growth,Maturity,Decline 7 Mass production, mass distribution and mass
1Small no. of large firms provide a range of products or services 2 Difference between Total Customer Value and Total Customer Cost 4 Railroad overlooking the growing competition from airlines, busses, trucks and automobiles 7 Identifying and meeting human and social needs 10 ____ correspond to 4Ps 13 Walmart is an example for this 14 VLCC is an example of _____ market
promotion of one product for all buyers 8 Describe a cluster of complementary products and services that are closely related in the minds of 9 Task of creating strong customer loyalty is ______ marketing 11 Similar products or services to the same customers at similar prices is ___________ competition 12 Geographic, Demographic, Psychographics, Behavioural 15 Target consumers may be unaware of or uninterested in the product
26 39 launched by which famous pizza chain? Pizza Hut Smoking Joe’s
The 4P’s Quiz 1) Sundrop is a brand of? Marico HUL Agrotech
Famous Famiglia P&G
2) Which of the following was not a Pepsi flavour? Pepsi Blue
Pepsi Cappuccino Pepsi Dark
10) Which of the following companies owns the brand SAFAL? Mother Dairy HUL
Pepsi Gold 3) Which of the following is not an Inhouse brand of Food Bazaar? Fresh and Pure
4) What is the full form of the company BPL? British Physical Laboratories Bharat Physical Laboratories Bharat Provision laboratories British Polarized Laboratories 5) Which of the following is an exclusive icecream(no other products sold) parlour? Havmor Happinezz Amul Mothers’ Dairy 6) Which component did Bournvita extensively promote as one of its USP? RDA Balanced Formula RAD Formula RD Defence Formula RAD Protection
8) Who recently purchased Paras Pharmaceuticals? HUL Reckitt Benckiser ITC Emami 9) ‘Double Burst’ is a new style of pizza crust
Answers1) Agrotech 2) Pepsi Dark 3) Fresh Plus 4) British Physical Laboratories 5) Happinezz 6) RDA Balanced Formula 7) Meru Cabs 8) Reckitt Benckiser 9) Dominos 10) Mother Dairy
7) ‘Rely on us’ is which company’s caption? Reliance Industries Limited TATA Photon