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SEP-OCT ’11

Vol. III

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Issue lI


Ed Speak

Team

W

e have been fortunate to witness some of the most brilliant works of genius around us. We have seen intellect

amalgamate with passion to bring to the world some sparkling moments that would stay with the world forever. In the past few days, it was

Neelotpal Shukla

unfortunate to lose few of the pioneers who have not only excelled but paved the path for future

Nishchai Nevrekar

generations to walk on. Steve Jobs, Mansoor Ali Khan Pataudi, Jagjit Singh, Dennis Ritchie are

Gaurav Modi

people who arrived on the minds of people, but never left. Their ideas and their talent has outlived

Rachita Behl

their physical existence here. What is the stuff legends are made of ? What is it that made few

Kushal Mehta

people so important that the entire world mourns for them? We've so many people who are really

Krisnakant Jonalgadda

good at what they do, then how come they dont become legends?

Tushar Kumar Legends have a vision that not many around them

Nanadini Kapur

can share. They have a strong holistic perspective which makes their learning about their area of

Pawas Soni

expertise unblemished. Their broad perspective is exactly what Theodore Levitt emphasized in his

Naresh Chandak

iconic work "Marketing Myopia". Thus, here at Buzz we have tried to capture the same essence by

Puneet Aggarwal

emphasizing on learning about the trendz that have made people sit back and take notice, we have

Neha Talwar

tried to answer the eternal debate about Sales vs marketing. The cover story captures the rise from nowhere of the Angry Birds to take the world by storm.

2| Buzz - The Markazine SEP-OCT 2011


Trendz Sure Deodorants- Would Rexona's failure haunt?

Contents FMS, New Delhi

Customer Loyalty Programs: Enough for Customer retention? IIM-Lucknow

Cover Story Angry Birds Premiere Wagh Bakri Tea Lounge: Can Tea emulate the coffee bar model? Welingkar Institute of Management

Gyan The Political Brand Icons: Charisma or just good PR? IIFT , New Delhi

Sales vs Marketing- The Fight and the Truce IIM Indore

Feature Print Ads Churn- Unleash the maze

We wish this concoction of articles and more importantly ideas will keep you engaged and enrich you. Happy Reading

The Eds Kushal Mehta Krisnakant Jonnalgadda

and have a great festive season. Designed by Nishchai Nevrekar

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Trendz Ishita Sharma Pursuing a dual Major in finance and marketing (MBA) at Faculty of

Sure Deodorants: Would Rexona's failure haunt?

Management studies, Delhi. Ishita holds a B.Tech degree from NIT Kurkukshetra. Eloquent, Intelligent and Creative she enjoys reading books, watching Television

Past Scenario:

NIT Allahabad and comes with a

When HUL decided to foray into India,Rexona was not the first deodorant in the market. Players like Copper and Fa were present, who relied on the assumption that the consumer differentiated between a deodorant and a perfume. This is where HUL came in and created a niche market for deodorants, which kicked-off well and at the same time generated awareness about the concept of a deodorant. Also, they wanted the communication to be sober as it dealt with the application of a product upon private parts in a conservative Indian mindset. To tap this, they chose a soap which was already popular in the countryRexona.

prior work-ex at Wipro

Promotion:

and loves cooking.

Deepi Garbyal Pursuing a Major in Marketing (MBA) at Faculty of Management studies, Delhi. Deepi holds a B.Tech degree from

Technologies. Hardworking,Determined and

Rexona was test launched in Tamil Nadu in 1995 in the form of a push-up stick, since aerosols were perceived to be expensive.

Creative she enjoys reading books and dancing.

However, the offering was not seen as value-formoney.

Indian Mindset:

Although consumers were aware of the concept of bad odour, they did not perceive it as a problem. Hence HUL's sales did not go up. So, it came up with new advertisements which showed how bad-odour could make people lose social acceptance. This resulted in the desired impact and everybody suddenly became keen to not be 'that guy',

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R i w


the one with bad odour.

Re- launch: Rexona showed unique product benefit which was, 'Effective all day, unlike talc'. This gave one the feeling of self-confidence

Present Scenario: Failure of Rexona:

After Rexona soap was aligned with Hamam, another soap offered by HUL, the tussle of the perception of Brand Rexona between being a soap and a deodorant

Rexona was test launched in Tamil Nadu in 1995 in the form of a push-up stick, since aerosols were perceived to be expensive. affected its sales and it stooped down to 5% market share, inspite of new product launches of the anti-perspirant and the 24hr intensive care variants.

Arrival of Sure:

The overall deodorant market has grown by about 40 per cent, amounting to around 900 crores in the past five years. It is further expected to grow at a rate of 20-25 per cent. We now have different deodorants to suit various profiles of men & women. Men sweat more and so, need a strong and effective deodorant. Also, they are

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Trendz

It seems that Rexona, a dying phoenix, has risen from the ashes. Only time will tell if Sure will rise up to the challenge of a highly competitive market. But for now,we can say that it has been given a fair, fighting chance. more often driven by pricing than by brand. Ladies prefer a good fragrance and also tend to choose a deodorant qhcih takes care of the

Sure carries the same logo - the 'Tick mark' and the same tagline 'It won't Let You Down', of Rexona.

sensitive nature of skin.

Comparison and Conclusion: HUL launched “Sure� in mid 2010, bringing the anti-perspirant deodorant category to India. It was intended to cater to the mass market segment. Interestingly,

It won't Let You Down'

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The Sure-Rexona story isn't the first instance of HUL trying to sell an old brand under a new brand's name, the other example being 'Clinic Plus' and 'Clear. 'However, the difference in the Sure-Rexona and Clinic Plus-Clear cases is the severity of baggage.


!While Rexona has been losing shares, the

brand Clinic Plus thrives as India's most preferred shampoo. This gives Sure a better chance than Clear to carve a niche for itself. !The swoosh mark and 'Won't let you down' tagline of Rexona may not possess so great a threat so as to weigh down Sure but Clear definitely banks heavily on Clinic. The other differentiating factors that will help Sure are:

Packaging:

Apart from the 'Swoosh' sign, Sure's packaging is different as compared to Rexona's. Sure also claims to be the world's best anti-perspirant, which gives it a more international feel than the one Rexona possessed. 路 Brand promotion: HUL has spent less on the promotion of Rexona over the years. The last noticeable campaign was the 'Who will you meet next' with Preity Zinta, in February 2007. But with Sure, it roped in Asin and Akshay Kumar (in a new outdoor campaign in Delhi) as the brand ambassadors. This move has added to the promotional activity, thus helping Sure create its own brand position. 路Rituals: Through educating the consumer about the anti-perspirant category (such an activity being absent in Rexona) HUL is now trying to get associated with a brand ritual for an effective brand recall.

capitalize on the fact that the brand Sure/Rexona does very well in international markets like UK and USA. One can learn the same from the graphics given in the article. It seems that Rexona, a dying phoenix, has risen from the ashes. Only time will tell if Sure will rise up to the challenge of a highly competitive market. But for now,we can say that it has been given a fair, fighting chance.

International Brand:

While Rexona suffered from association with Rexona Soap, which affected its image in the market, Sure comes free from these bonds and can actually

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Cover Story

From NjM’s Cradle Salil Pawar

Angry Birds Breaking new barriers How often does history repeat itself, with the help of a

Sudeep Singh

slingshot, so as to shoot into success? Not very often, I guess. But then history does get created when one

Aarti Khatwani

Finnish designer's feetless birds decide to take on pigs! And that is what transforms into 'Angry Birds'. Two phases can be carved out of the on-going Angry Birds' fervour: Pre and Post-success. In other words What went into it and what came out of it?

Background: Jaako Iisaalo, the brain behind Angry Birds' had considered it to be just another day when his wife was out and he sat at his desk, doodling rough sketches of a different breeds of round birds. Rovio Mobile, his employer firm, was short of funds, and the video game designers were short of time and game proposals. Launched in December 2009, the game turned out to be fairly close to an overnight success. It was as if the strange concept of pigs in the form of birds' enemies instantly struck a chord with the users, who seemed to get a chance to take out their wrath on the pigs due to the then-on-going epidemic of swine flu. Initially offered in a single version with three levels, Angry Birds hardly took 11 months to upgrade itself. Since then, it seemed to have never looked back. It recently introduced another fascinating feature to the game –

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the' Mighty Eagle'. Today the game boasts of being played over 200 million minutes per day and has more than 350 million downloads till date!

Success strategy: The firm believes in the following steps to success: 1) Create a great app 2) Get the message out

Marketing strategy: Ever since the phenomenon of Angry Birds

One Game. Number One, longer than anyone

appeared on the surface of the planet, all one could

else'.

What was launched as a simple

wonder is how a seemingly

game for iPhone and went on to enter a cascade

ordinary game earned a whopping

of events – ·

Number one in Finland

The key, as from the

·

Number one in Sweden

horse's

mouth, lies in their

·

Number one in UK

marketi

ng strategies.

·

Number one in US

revenue of $ 1.2 billion!

Soon, it caught the attention of smartphones, The experts at Rovio were well aware of the fact that

who wanted to follow suit - that of earning huge

it was 2009, a year which had just followed

revenues. The application found entry first into

recession. No matter how wonderful the game was,

Android and then into Mac, and not to mention,

it needed an audience. In other words, it had to

Apple's AppStore is the biggest market for Angry

market itself to achieve the coveted title of 'Number

Birds till date

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Cover Story . While the world was engrossed in the addictive essence of Angry Birds, Rovio had already planned what lay ahead. The release of the 'Angry Birds Plush' toys was their first move. 'Google Doodles' don't take the users by this big a surprise, as did the tie up of Angry Birds and Google Chrome! A red box fanned by a red, round bird, invitingly asked people to download the application. This was emulated by a tie up with

Atlantic's Alexis Madrigal estimates that if 5% of all hours spent playing Angry Birds occurs while people are at work, that could translate to $1.5 billion in lost productivity. The assumption is based on statistics that say Angry Birds is played about 868 million hours per year, and a fairly arbitrary average wage for workers of $35 per hour.

Rovio, the company behind Angry Birds is now valued at over $ 1 Billion. GetJar, which gave the firm a start of about 15

books etc. This will help tremendously in

million downloads!

increasing the game's popularity as well as

Social Networking being the need of the hour,

generate awareness in areas which are still to be

Rovio did not take too long to cash on Facebook

tapped.

and Twitter, where its fan-following in thriving

And the ball doesn't stop rolling here. When

today.Much has already been done and much more is yet to come. There are reports about an Angry Birds film in the process. A tie-up with Starbucks has been officially declared by Rovio, to slowly turn their virtual world into the physical world of stuffed toys,

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asked in an interview about their future plans,

Also there are complaints regarding discrepancies

Peter Verstabacka, CEO, Rovio, informed that

in the game structure. The game seems to offer

though Angry Birds has 100% brand recall in the

myriad levels with a lack of hierarchical difficulty

USA, the recall is as low as 30% in China, which is

levels, and an easy level sandwiched between

a huge potential market. Hence the next big step

difficult and moderately difficult ones. This should

would be setting up Rovio's first overseas market

be a point of concern for the firm who claims to

– that in China.

beat the fame of Disney one day.

The latest in news is the marketing move by

While the debate is still on over the pros and cons

Finnair to 'fly' on Angry Birds' popularity to create

of Angry Birds, let us be the silent spectator,

awareness about its new air-route to Singapore.

allowing time to reveal whether the stage has been set to host the biggest trend ever or the soon-to-die

The Debate:

'soda pop fizz' effect.

Having said it all, there still exists scepticism as far as the era of this game is concerned. Not all feel that Angry Birds is like the dawn of

Angry Birds now averages over 1 Million downloads per day!

unending name and fame. Barring the fact that this application has stolen endless productive hours out of the world's economy, the game has

Over a MILLION Angry Birds plus toy sales happen per month!

started facing a new flak-Boredom! Users are complaining of the game turning into another boring element.

Over 1 MILLION Angry Birds t-shirts sold every month!

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Premiere Authors

Wagh Bakri Tea Lounge A Novel Concept

Prabhdeep Seth

Can Tea emulate the coffee bar model?

is currently pursuing his MBA from Welingkar Institute of Managment,

“In all things of nature, there is something

Bengaluru. He has done his

marvellous” – Aristotle

graduation in the field of business management. He has worked at

Tea and coffee are two such things from nature,

Citigroup Inc, has been living in Vile

both marvellous in their own way but there is

Parle, Mumbai and was fascinated by

always a ' Tea V/s Coffee', and people expect a

the concept of a Tea lounge which

clear winner to emerge amongst them.

prompted him to write about it. Once again the battle lines have been drawn, but this time in the arena of Business, holding the tag of a challenger is Gujarat Tea Processors and Packers Ltd (GTPPL) (Tea) trying to usurp the ‘Champions’

- The Baristas, The Cafe Coffee

Days, The Costa Coffees, etc. to name a few

Shalin Kumar

(Coffee).

is currently pursuing his MBA from

GTPPL popularly known through its Wagh Bakri

Welingkar Institute of Management,

(Exhibit 1) Tea brand, had forayed in to the retail

He has graduated in business

category with its Wagh Bakri Tea Lounge in

management, from Symbiosis

Mumbai in 2008. It was a first of its kind concept,

Center for Management Studies. He

where the consumer got to taste their tea leaves

has worked at JP Morgan Chase and

before purchasing, in a five-star ambience.

plans to specialize in Finance.

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terribly gone wrong. It has been four years and the company hasn't opened up any other Tea lounge apart from the one situated in Mumbai (Vile Parle). What went wrong? You may ask, if statistics are to go by, then Demand for Tea in the coming years will be on an uptrend (Indian Stats) (Exhibit 2) Tea consumption in India is Putting it in the words of the Chairman of the

miles ahead when compared to that of coffee.

group,

Irrespective of having conducive factors, the

“The Wagh Bakri Tea Lounge was a first of its kind concept, where the consumer got to taste their tea leaves before purchasing, in a five-star ambience.” “We are confident that their extensive

Tea Lounge model doesn't seem to have

experience will be of great value to us. This

taken off.

is the first tea lounge in Mumbai city and we plan to roll out a number of outlets in other

Although the company pioneered something

parts of the country. I am confident that the

new in this overly saturated Café / Coffee bar

launch of this new format will mark a

market, it seems to be going ahead on the

significant development in the evolution of

path to PARC syndrome (Exhibit 3). What the

the Wagh Bakri brand" – Piyush Desai,

company is oblivious of, is the fact that it is

Group Chairman 2008 Press Release

sitting on a potential gold mine!

Fast forwarding to 2011, something has

Let's look at how we can approach the Tea bar

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Premiere model to make it a success. Firstly looking at something simplistic, like the processing of tea leaves, the same cannot be replicated in a Tea Bar model vis–a-vis a Cafe model, where one enjoys a sensory appeal of smell and sight (process of coffee beans being crushed and fresh coffee being made). Tea cannot brand itself on the freshness factor although it has a refreshing element associated with it.

“In this fast paced world of technology, where face to face communication has been replaced with Facebook, Tea bar can position itself as a bridge that rekindles togetherness and face to face communication. � Secondly, Tea drinking has been a practice that most of the households in India follow, so drinking tea becomes a casual activity around which one has failed to create an occasion. Apart from home, the real challenge faced by this business model is from a simple Chaiwala (Tapri) outside most offices / colleges that impedes people from scaling up on their options. Again the casualness attached to tea gets highlighted.

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So in order to break through these barriers, we

around the brand. The next step to be taken is

feel that the Tea Bar should be positioned in the

to work on the aesthetics of the store, “People

following way “Chai and Rejevunation” OR

do not eat with their mouths but with their

“Re-Chai yourself”.

eyes” is a mantra that needs to be kept in mind. A periphery of other services can be

Tea drinking needs to be pushed as a healthy

created around Tea cafe, like trivia nights,

beverage (Exhibit 4) to the people between the

musical entertainment, book clubs (informal)

age group of 25 to 35, the working class that

can be engaged, wi-fi facilities etc.

today is more health conscious. Not just that,

The question to be asked at the moment is not

the Tea bar needs to build itself as a leisure

about the success or the failure of the model,

destination, a place where one can be his or

but about the willingness to nurture a new

her own self. In this fast paced world of

market. The Indian consumer was thought to

technology, where face to face communication

have a discerning palette, a myth that was

has been replaced with Facebook, Tea bar can

shattered with the advent of the coffee bar

position itself as a bridge that rekindles

model. Tea has an opportunity to be a White

togetherness and face to face communication.

Knight for its consumers, and give them a chance to acquire taste towards its richness, a

As a product the company has the best

commodity for which wars have been fought

product in the market, with 32 variations of tea

and colonies being created. The road has just

being offered, a single store disadvantage can

started!

be used as an opportunity to build exclusivity

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Gyan Dr Yashaswi Barapatre

The Political Brand Icons: Plain Charisma or just good PR? “A politician will do anything to keep his job - even become an actor.�

Currently, an MBA student at Indian Institute of Foreign Trade (IIFT), New Delhi,

This quote by William Randolph clearly tells us how much politics has evolved over the years. Political communication too, has changed, from ideological

I have done my MBBS from Maulana Azad Medical College (Delhi University).

preaching to lifestyle branding. In the traditional days, political communication was structured along a small number of grand themes. In today's modern world,

An avid quizzer, I am also interested in writing poetry and learning foreign languages.

politicians cannot rely upon the old forms of pomp and ceremony to justify what they do. Instead politicians, like actors have come to rely on political marketing techniques, on forms of communication based on persuasion in which voters, lacking enduring political convictions, are motivated to select a particular candidate or party at election time.

Being charismatic is a part of the politician's job. However, to exude just the right amount of charisma at the right time is extremely crucial. Following the

16| Buzz - The Markazine SEP-OCT 2011

“


coverage of the election campaigns in various

thereby branding Labour Party as the 'New

countries, one cannot resist the impression

Labour'.

that this might be more of a war of brands than a political contest. Journalists' and bloggers'

Similarly, David Muir, a former adman and co

language is so riddled with terms from

author of 'Business of Brands' is considered to

marketing and brand management, that one

be the man behind Gordon Brown's PR

could as well be reading an Economic Times

campaign. Back home, in 2009, L.K.Advani,

piece about the competition between Pepsi and

the BJP stalwart went the Obama way. He

Coke or an Economist review of the differences

started his rebranding campaign with the

between flying British Airways and Virgin

statement, 'Man of Eighties, Vision of

Atlantic!

Twenties'. He was projected as an ordinary Indian

“ A politician will do anything to keep his job - even become an actor.” The Rise of the Political Brand Be it the famous “Change” campaign of Democratic President Barack Obama or strategy to reconnect the former Prime Minister of UK, Tony Blair with disaffected voters, commercial frameworks have become immensely successful. Blair sought the services of Promise plc, a commercial consultancy specializing in brand building. Promise converted the 'old and patronizing Tony' to 'fresh, mature and approachable Tony';

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Gyan

Today, politicians not only thrive on their leadership qualities but also on the PR that goes behind it. The mind-set of voters taking part in general elections has matured over the years. Politically, they have become more aware and at the same time, more demanding as well. leadership qualities but also on the PR that goes who was emotional, yet energetic enough to

behind it. The mind-set of voters taking part in

give new direction to a country in political

general elections has matured over the years.

turmoil. Like Obama's presidential campaign,

Politically, they have become more aware and at

ads calling for Advani as P.M. were flashed in

the same time, more demanding as well.

more than 2,000 websites which were

Therefore, it is essential that the political parties,

frequented by Indians. Much on the lines of

in the

Obama, Advani also wrote his biography which was marketed in a planned manner.

near future, plan their political marketing in a more responsive, accountable and professional

The Cynical Voters:

manner. This is the primary reason why

Today, politicians not only thrive on their

applications of brand management principles in

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political parties are continuously increasing in

unique, reassuring, aspiration, value-based and

many countries.

credible. It is often observed that successful

Ghana's Story:

politicians are have the ability to deliver simple,

A South African brand management agency,

credible and reassuring messages over time.

Brand Leadership Group was the brain behind the political communication that led to the

The characteristics of product branding are

success of Professor John Atta Mills, the

related to political PR, like emotional connect,

opposition NDC presidential candidate who was

promotion through multiple channels and

sworn in as Ghana's president in 2009. Mills, a

gaining trust. Trust building, in political PR, refers

former Vice-President in the Rawlings era

to use of value-based words, phrases and

defeated the ruling party, NPP's Nana Akufo-Addo

symbols to connect with the voters in order to

in a tightly contested run-off on 28 December,

gain the necessary support. Politics is all about

2008 claiming victory with 50.23% of the vote to

trusting a candidate in the age of mistrust.

Akufo-Addo's 49.77%.

Hence, political brands can be cultivated as well as contaminated through good PR.

Brand Leadership Group, which was appointed by the opposition party in early 2008 envisioned and implemented the campaign right up to the run-off which became necessary when a clear winner could not emerge from the exit polls. Blending the principles of marketing, branding and political campaigning, the agency came up with a strategy founded on what it called the 'Four-Phase political branding' campaign designed to reassure committed voters and re-establish the NDC and Mills as the best custodians of Ghana's values. ambitions and prosperity. Conclusion: in politics, all factors shaping voters' perceptions – be it media, the politician's behavior itself, or the actual issues raised by him, need to be aligned in a manner that reflects good leadership. The message should be simple,

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Gyan Authors Nishant Hingu

Sales vs. Marketing The Fight and the Truce Every business aims for a share in the market and the

Affable by nature and easily

profits. Business functions have been divided so that

approachable, Nishant never shies

each of them is clear in its objectives and processes.

away from helping anyone in need.

Healthy conflict ensures that the business benefits

He is a firm believer in the principle of

the most and is in the best interests of all.

“Giving back to society”. He gels well

A

with team members and always

generated by

motivates others to give in their

the marketing

100%. He believes in the mantra

personnel is

“Practice what you Preach”. He is an

sent to the

ardent cricket fan and himself an all-

sal es team

rounder.

who attribute t

Roshan Tirkey

l e a d

h

e

successful conversion of the prospect to the salesmen's efforts. However, when unsuccessful, they blame the marketing team for wasting their time and sending in a list of difficult to convert or improperly analysed leads. Marketing, in turn, dubs it as sales inefficiency. Be it a product's

Roshan is simple, strong, disciplined,

success, resource sharing or compensation system,

confident and passionate about

the fight between Sales and Marketing seems to be a

sports. He loves to make new friends

perpetual one.

and enjoys team work. A good leader,

While marketing takes care of the product awareness

he always comes forward to take

and branding related aspects taking into account the

responsibilities and manages people

long term view and nature of the market, sales is

well. He loves travelling and listening

more about building customer lists and relationships

to music.

in conjunction with the current targets.

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Each has its own contribution and is

accomplish the goals of the organization.

incomplete without the other. Consider a situation where we have excellently pitched

The Push and Pull Strategies give a clearer

our product to our target audience. Is our job

picture of marketing and sales. For example, the

as an organization then complete?

For

buzz that Steve Jobs created for Apple on techno

tangible results and measurement of our

geek blogs and in the entire media didn't require

marketing efforts, we need numbers and that

sales of the products to be pushed. Rather, the

is where sales come to our rescue. After all,

products were demanded due to extensive

selling is the sole purpose of producing which

advertising and promotion.

is even captured by our financial statements.

Marketing spends like advertising and

Thus, selling involves two processes that need

promotion are a function of sales. Citing an

to complement each other so as to

example of Dabur, its A&P spends stood at

ICICI Bank adopted aggressive selling tactics when the Indian economy was booming, compromising seldom on the credit quality which consequently led to NPA's. Now they have adopted a conservative approach, contracting their selling in several product markets. Rs.151.5 crore in the Q1FY12 which is

Company GCPL Marico HUL Nirma Soaps*

Advertising and Promotion spends as a % of sales 11.7 11 11.5 1.25 to 2%

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Gyan approximately 12.5% of their sales (* is % of

generation is possible by adequate promotion

turnover)

activities. Marketing and Sales can hence be

Marketing expenditures in companies like

compared to a basketball game where marketing

GCPL, Marico, and HUL follow a percentage

plays the role of a point guard creating and

of sales method. Sales requires marketing

defining opportunities and Salesmen, scoring

plans

and

and leads generation from the marketing

making numbers.

team. Thus, there exists a bi-directional flow of information between the two. This also

In the present state of abundance, where a

ensures that resources are shared equitably.

customer has a lot of alternatives to choose from,

For FMCG products, reaching out to

it is important for companies to differentiate their

The tiff isn’t prevalent in small scale companies between who is the driver of revenues- sales or marketing. The issue becomes dominant when the company grows in size. maximum retail outlets is the key. Indian

products and to survive in the current scenario,

rural population which forms 68.83% of the

it's not Sales OR Marketing that requires

total population of 2011 is a huge potential

attention, rather it is Sales AND Marketing that

market, though with a lot of challenges,

would work wonders to earn those revenues

logistics being the dominant one. Sales and

(Exhibit 3).

distribution is certainly a difficult task here and the HUL Project, Shakti and Shaktimaan

Revenues=f (Sales, Marketing, other units)

(Exhibit 2), has proved that revenue

Scale and Friction: Consider a small scale

India Population

No. of people

company where employees don the hats of

Rural

83,30,87,662

marketing, sales, operations, and finance all at

Total

1,21,01,93,422

the same time. Eternal tiff of who is the real driver of the revenues certainly does not arise in this case. However, once the company matures and is

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divided into various units for efficient

teams, employing efficient lead generation

administration,a tiff does arise. Belittling

mechanism and shuffling of people from sales to

contribution of one for the other for revenue

marketing and vice versa to understand the other

purposes is indeed very myopic.

side of the coin, will certainly help to call a truce between the two.

A common integrated approach including regular meetings between the sales and the marketing

Exhibit 2- Project Shakti and Shaktimaan Project Shakti Ÿ Business objective: To extend direct reach into untapped markets and to build brands through

local influencers. Ÿ It provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and

provides access to quality products across 100,000+ villages and over 3 million households every month. Ÿ It contributes to 10% of rural turnover nationally for HUL. In most Shakti markets, HUL is

dominant and enjoys a market share which is qualitatively better as compared to non-Shakti markets.Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India. Ÿ Project Shaktimaan enrols an unemployed or under-employed male member of a Shakti

family to sell our products in the surrounding villages. Ÿ The initiative enhances two aspects simultaneously – livelihood opportunities of the Shakti

family and the quality and depth of the distribution of HUL products. Ÿ By the end of 2010, there were more than 23,000 Shaktimaan representatives going to

villages across India. Shakti Programme has helped in tripling the rural footprint by reaching out to increased

Exhibit 3- Gross Sales, Employee costs and Advertising and Promotion spends in crore Company P & GIndia, Q4March’10-‘11 GCPL, Q1June’11-‘12 Dabur India Ltd, March ‘11* Nirma Ltd., March ’10*

Gross sales 247.20 647.91 3295.36 3329.18

Employee costs 13.92 31.14 208.92 112.23

A &P spends 37.96 65.57 390.19 58.82

23| Buzz - The Markazine | SEP-OCT 2011


Trendz Rahul Kumar

Customer Loyalty Programs: Enough for Customer retention?

Rahul is pursuing Post Graduate Programme in Management from IIM Lucknow 2011-13. He has done B.E. in Electronics and Communication from Manipal University and has worked with Honeywell for 22 months as Hardware Engineer.

Customer satisfaction is worthless. Customer loyalty is priceless. -

-Jeffrey Gitomer

Over the years marketing strategy of companies has evolved from the product concept to selling concept to marketing concept to societal marketing concept and now to the holistic marketing concept. Customers form

Trisha Pandey

the center of marketing system and all marketing strategies devised by the marketers like loyalty programs etc. revolve around the customer. There are three levels of customers' relationship hierarchy, which companies try to achieve one after the other.

Trisha is pursuing her Master of Management at SJMSOM, IIT Bombay 2011-13. She has done B.E. in Electronics and Communication from Manipal University and has worked for 34 months in VLSI domain with Freescale Semiconductor India Pvt. Ltd. as Senior Design Engineer.

24| Buzz - The Markazine SEP-OCT 2011

There are three levels of customers' relationship hierarchy, which companies try to achieve one after the other. !路The first level is Customer Satisfaction, the basic intent

of which is to identify and satisfy customers' needs. There is no distinction involved at this stage since customers m ay b e s a t i s f i e d b y u s i n g a ny c o m p a ny ' s


products/services and hence no brand loyalty

Customer Acquisition.

involved.

Companies have resorted to the use of various

!¡Customer Engagement, where companies

programs intended to build Customer Loyalty –

start engaging customers on a long term basis.

a loyalty card, rewards card, points or club

This is the first step towards building Customer

card, membership programs, online

loyalty. Various methods used include online

communities etc. The holders of these cards or

forums to collect customer reviews, upgrading

members of communities are offered discount

and modifying products asper customers'

on purchase of company's products or points

feedback and informing customers that their

in lieu of which they get gifts/freebies.

complaints and suggestions have been given due consideration, sending invites to customers

Here is a simple but powerful rule - always give people more than what they expect to get. - Nelson Boswell f o r

c o m p a n y

f e s t s

e t c .

! Customer Delight which means that the

customers are delighted to be associated with a brand and are brand loyal. The most important question – Why is there so much focus on gaining customers' loyalty? It's simple. Because it costs five times as much to find a new customer than it does to get a current customer to come back, Customer Retention and Customer Perceived Life time value

(CPV) hold greater significance than

25| Buzz - The Markazine | SEP-OCT 2011


Trendz the customers for their likes, dislikes, grievances, etc. !Consistency – The best way to build rapport

How does one go about building customer

with a customer is to be consistent in quality

loyalty?

and other deliverables like on time delivery and responsiveness to consumer demand.

Customer loyalty is not earned in a day, it involves

From day to day goods low involvement

continuous effort throughout. Customer loyalty

products like FMCG to high involvement

cannot be sustained for long unless the quality of

products like automobiles a customer wants

products/services offered by the company is not

consistent performance every time one buys

up to the expectation and so is the case with

or consumes it.

Loyal customers, they don't just come back, they don't

simply recommend you, they insist that their friends do business with you.

- Chip Bell, Founder Chip Bell Group

post-purcha se services. It is important to listen to customer's

!Credibility – This is the most important trait

and

that links the company's performance to its

perception

of

the

brand

brand value. Delivering to the customers what

simultaneously also analyze the reasons for

is claimed and finding the correct solution to a

s w i t c h i n g / d e f e c t i o n .

customer's requirement are two ways how a company can bring credibility to its brand and

!Communication – The key to any long term

itself. A customer is willing to wait for a certain

relationship be it personal, professional or

amount of time to get what he needs rather

emotional is communication. Communication

than settle for a solution that can only be

being a two way process; it is as important to

termed as 'jugaad'.

communicate the attributes and values of product/service to the customer as listening to

26| Buzz - The Markazine SEP-OCT 2011


t

o

p

!Surprise – Give the customer more than what

they expect. An act as simple as greeting cards sent on the occasion of New Year or an e-mail expressing gratitude, a follow-up phone call to know how if they like a product/service goes a long way in building relationships. And like in any other relationship a company cannot afford to take customers for granted.

The overall gist is that the “Customers are the soul of any business”. For an organization to sustain in long term and to grow its top-line the need is not only Customer Acquisition through capture of new markets, Market Penetration or Product Diversification but Customer Retention through game changer strategy of Customer Loyalty. At the same time the brands should exercise extreme care that the loyalty once built is not thwarted by any compromise on quality of products/services. Precisely, Customer Delight is a high returns, high risk stage to be in.

PG | Buzz - The Markazine | SEP-OCT 2011


FEATURE

N J M “What's in it for me?” was the question,

ConQuest

popped in the midst of a crowd of 450

2011

students, to us. “A roller-coaster ride” is what we replied. True to our word, we presented to the batch a ride to remember in the form of 'Pitchfork'. The participants modified the old said proverb to, “Little pitchers have long and sharp ears”. Wit and marketing skills were put to test over four rounds with rigorous tasks of planning and selling involved in each.

And the ride doesn't end here. Enter the 'King of good times'- NJM Conquest. It is a platform given to the junior committee members to have a firsthand experience of the world of marketing. Interaction with over 2000 customers while mapping responses for five big brands is definitely a major addition to the skill set; and all this along with fun-filled salesmanship, questioning and shadowing! It is the sheer pleasure derived, at the end of the day, from a realization that a plethora of questions like how, why, who, when, where, which, whose, whom et al of consumer behaviour got answered, that counts. That was just the beginning now the real

Next to hit the floor was 'Two-Timers', a red carpet welcome to the world of marketing!The theme was laid with the beauty of marketing mix by incorporating the product into 'Be Anagramically wise', place into 'Treasure hunt', price into 'Guess' and promotion into 'Brand Stand'.

28| Buzz - The Markazine SEP-OCT 2011

fun starts (analysis), late nights, packed schedules are all a common place. And that is exactly what we believe in. That is 'Not Just Marketing'.


Some of the brands at ConQuest 2011 . .

29| Buzz - The Markazine | SEP-OCT 2011


Print Ads

From over 80 entries from all over India, these were the

top 4 that made the cut !!

30| Buzz - The Markazine SEP-OCT 2011


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o innir- K J S

Wa Na ity

d yA

B

Ru By

nn

Av ik

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sU

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31| Buzz - The Markazine | SEP-OCT 2011


Competition

& present

Online Case Study Competition Cash Prize

Rs. 10,000/-

Coming Soon . . keep watching . .

PG| |Buzz Buzz- The - TheMarkazine MarkazineSEP-OCT | Feb - Jun 2011 32 2011


Churn

Unleash the maze Maze A

3) An animated movie was made on him under the

1) The Ex-Chairman of a legendary Indian firm.

banner of_______.

whose famous quote is “After all a promise is a promise” 2) Passed a statement recently," There is a need

Maze E

for us to satisfy that there is no hostility towards

1) The new Chairman of “what keeps the doctor

us for the state. Which state?

away” –_________.

3) This state has a new de-anglicized name now.

2) He shares his last name with which famous

What is it?

travel agency?

Maze B

Maze F

1) A physician-writer who was banned from her

1) Its tourism advertisement says- "God's own

own country. Who is she?

country". We are talking about ________.

2) Hence she was made to exit her country to

2) But it does not have what Gujarat does (In the

start a life in exile here. Where?

form of a brand ambassador). What is it?

3) This country is the largest exporter of

3) He recently made everyone familiar with a

_______.

genetic disease through his work. Which disease?

Maze C 1) This brand has moved from orange to pink to red. Which brand is it? 2) This is its unusual brand ambassador.

1) This company has a plant in Manesar. Which company is it? 2) Its literal meaning is taken from the name of

Answers: A Ratan Tata, West Bengal, Paschim Banga. B Taslima Nasreen, Sweden, Music (Pop and Rock) C Vodafone, Pug D Maruti, Hanuman, Sahara E Tim Cook, Thomas Cook F Kerala, Amitabh Bachchan, Progeria

Maze D

the father of this worshipped devotee. Who is he?

33| Buzz - The Markazine | SEP-OCT 2011



NJM Buzz