The
MARKSMAN
K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
VOL. IV | ISSUE II| JULY’ 13
SPECIAL STORY THE ERA OF e-tailing
>> 11
BOOK WORM
>> 15
BRAND MARKIVE
>> 05
HALL MARK CAMPAIGN
>> 13
C OVER S TORY
ANALYTICAL MARKETING
EDITOR’S NOTE Dear Readers, We welcome you to yet another awaited issue of “The Marksman”. As most of us are getting back to our usual busy B-school lifestyle, we welcome our new Target audience- the newbie MBA students who have freshly started off their rigorous two year journey. In this issue, our cover story “analytical marketing” unveils the cryptic method that all companies today use where they pull shopper data and undertake a thorough analysis so that you always get the perfect product recommendation, page like suggestion & various schemes that arrive in your inbox. This is done via years of data collection and personalizing the data for each customer! Sounds cumbersome right? Read on and discover how & which companies employ this marketing tactics. With our special story section we plug you into the transition undergoing retailing where e-tailing today is imperative and growing. Tease your brain with Buzz, and get a micro view of the latest happenings with Tweets. If you enjoyed Toy Story & Finding Nemo our Brand-Markive on Pixar is a must read for you! And yes, SquAreheaD is also back from its warm and cozy summer break! Our calls for article section which is a platform for our readers to write in to us. We would like to congratulate the winners of our article writing competition Ashajyoti Parida and Ronak Shah for providing insightful views through the article. As we continue to give you a kaleidoscopic view of marketing we hope this issue too gives the same that we had putting it together. So with a start to a new beginning for our new readers and our ardent readers who continue to show their faith dig into an eclectic new issue!
Also Let us know your thoughts and be sure to come visit us at www.interfacesimsr.com/the-marksman for more of the latest integrative marketing news and stories. Cheers!! Team – Marksman The Interface –The Marketing Club of SIMSR
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JULY 2013
CONTENTS 07 11
COVER STORY ANALYTICAL MARKETING
SPECIAL STORY THE STORY OF E-TAILING
TWEETS
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IT’S ALL ABOUT AD-ITUDE
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BRAND MARKIVE PIXAR
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HALL MARK CAMPAIGN CONNECT WITH YOUR ROOTS
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Will brand Infosys rise after return of NRN ?
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Is Consumer Preference for brands with good cause on rise?
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BOOKWORM
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BUZZ
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TWEETS LINKEDIN LAUNCHES SPONSORED UPDATES LinkedIn has announced the launch of ‘Sponsored Updates’ upgrading ‘Content Marketing’ capabilities for companies on LinkedIn. This would help companies update sponsored content about their products in the newsfeed of target audience. The update will have to carry tag of Sponsored when it comes on the screen of the audience. REEBOK ROPES IN NEW BRAND AMBASSADOR: JOHN ABRAHAM Reebok has signed up Bollywood star John Abraham as its brand ambassador in India. John Abraham has an image of a very fitness conscious celebrity and roping him in would help Reebok connect with fitness enthusiasts. John will be seen in a new festival season campaign by Reebok. MTV LAUNCHES NEW CAMPAIGN: CEAT CHASE THE MONSOON MTV has launched a new campaign in association with CEAT. The campaign is aligned with shows like Roadies which are filled an adrenaline rush. The objective is to maintain the interest of its viewers in the channel in monsoon season also. The campaign is being publicized via Facebook primarily.
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JULY 2013
TWEETS AMUL CONTINUES ON ITS HUMOR ROUTE WITH A NEW CAMPAIGN: E AT M I L K W I T H E V E RY M E A L Gujarat Co-operative Milk Marketing Federation (GCMMF) has launched a print and digital campaign for its brand Amul. In the campaign, multiple print advertisements are launched with the theme of ‘Celebrate Life’. Each ad features a person with milk moustache and who drinks milk with every meal. The ads depict exaggerated benefits like ‘Lifting car with hands to change tires’ or ‘A tennis player winning doubles alone’.
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It’s all about AD-ITUDE Media: Print Client: United Nations Environment Program (UNEP) Creative agency:Valappila Communications
The ad on the occasion of World environment day, tries to confer attention on taking care of our mother earth. The tree shaped like a pregnant mother’s belly relates the motherly hood of earth to a woman. As a mother nurtures and cares for her child since his/her infancy till the last moment, the mother earth cares for us too. So in turn it requires care from us too. This connotes that there is no specific world environment day but every day is environment day. “Mother nature too needs care and protection. Show her your care. By caring for her trees. Love trees..Love nature..!!” , this is what the ad says. Valappila Communications is successful in passing its message by catchy image and deep message.
Media: TVC Client: Jyothy Laboratories (Ujala) Creative agency: Cut the Crap
FMCG giant Jyothi Laboratories recently released its TVC for its famous liquid whitener UJALA. With a brand new tagline “ Safedi kea age Ujala” this ad modifies itself and aims to catch the attention of ambitious people. The ad revolves around three characters: A young school boy, a lady lawyer and a male executive. The lady lawyer was shown unfazed by powerful politicians. A young school boy’s brick breaking kick deters goons who bully him and a male executive impresses its senior subordinates around a conference table. The ad tries to boost self-esteem and fetches respect. Ujala is post wash addictive,and it emphasises on radiance than whiteness so “Safedi kea age Ujala” is the tagline.
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JULY 2013
BRAND MARKIVE PIXAR DEAL WITH DISNEY
Pixar is a name synonymous with animation. It is a name that we associate with endless feelgood movies. The films created by PIXAR are for family audience.
Even though the movies are in animation, the films are well liked by children and adults alike. Pixar has created 14 films all which have accumulated both critical and commercial success worldwide. Some of the movies went on to win Oscars.
HISTORY Pixar started as part of George Lucas’ Lucasfilms’ computer division. It was headed by Ed Catmull. The idea was to develop a digital film editing system along with a digital sound editing system, a digital printer and to further explore computer graphics. This division was working on giving special effects to films until Steve Jobs invested in them in 1986 and thus Pixar was formed. Now Pixar was more a corporate entity than just a division in a bigger firm which could concentrate on making full-fledged movies. But Pixar was not successful initially, it kept losing money and Jobs, now a complete owner of Pixar considered selling it off. The success of ‘TOY STORY’ changed that.
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Pixar’s relationship with Disney started way back when Pixar was a high end computer animation company and it used to sell ‘PIXAR IMAGE COMPUTER’. Disney was a buyer of this product. Disney was using this product to upgrade the animation process from paper and pen to an automated system. Over the years Pixar and Disney kept their relationship alive. In 1999, Pixar made a $26 million 3 film deal with Disney first of which was ‘TOY STORY’ which went on to become a successful film at box office. Disney was also the distributor of the film. This relationship was duly affected after the release of ‘TOY STORY 2’. Disagreements aroused relating to distribution of profits and movie release process.
TRIVIA TOY STORY collected $192 million domestically in U.S and $392 million worldwide – a first for animated movie. A BUGS LIFE broke all the previous U.S. Thanksgiving weekend box office records. John Ratzenberger has lent his voice to every Pixar movie. Pixar is taken from the Spanish word PIXER meaning to make movies. PIXAR is not an acronym contrary to popular belief.
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COVER STORY ANALYTICAL MARKETING
Consider this. It’s an indolent day that you decide to spend on your couch. Here you are however bombarded with a plethora of advertisements and the latest online shopping advertisement calls out to you to make a generous contribution. You decide it’s a perfect day to shop, again from your couch, & log onto a leading shopping website Flipkart. There a mind boggling sale leads you to various categories. You end up making a purchase after deliberating for a few hours. However as you are about to check out a few suggestion boxes appear stating that “those who brought this also brought this” which includes a lineup of varied products which belong to the same or from a different category altogether.
The above example amplifies the evolving marketing scenario where television advertising, though on a mass level, could never be able to identify how targeted the message was and could only measure the frequency and reach of an advertisement. This data by website is collected in an incognito way and is analyzed and suited to the liking of every customer. Analytical marketing is employed by companies to track their consumer’s preference by maintaining data about their shopping history, their online activities , like’s, comments tweets ,which sites they visit. They basically play ‘big boss’ to all your activities.
Now is Flipkart clairvoyant enough to know what to suggest to you? How did they know what kind of splurges did the other shoppers indulged in?
This data is then analyzed to reveal insights into how consumers interact with their company and for what reasons too .It allows businesses to make calculated and informed decisions. Ecommerce companies pull this data based on previous purchase and tracking customer movement and bounce rate on various pages. Then this data is used for analyzing further how to cater to individual customers effectively.
This flummoxing data that they provided shows how a mundane activity of shopping exposes a cryptic method of how stores are collecting data pertaining to their customers.
This is heavily employed in social networking sites too. As a matter of fact Social media has spurred a new profession out of this.
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COVER STORY Online social media analytics is a huge business. Company fan pages are usually saddled with basic demographic analysis like what country do their fans reside in, their age group,the engagement rate of posts etc. It basically acts like the dreaded report card of how well your page is faring in page likes, post virility etc. These numbers reveal how and where a company is lagging or winning the social quotient race .This data is cleverly used by Facebook too for leveraging its advertising business where it has an already analyzed database ready for targeted ads. So if and when one needs to advertise as per their target group it has a ready data presented with an accurate number of potential customers. The following is an example of when a company prepares to advertise it just needs to define its target groups age and interest and Facebook throws up a figure. This figure is courtesy the database it has build overtime via users profile details and interests and pages liked.
This has turned into the biggest revenue model for Facebook where advertising space is available. These are the sponsored advertisements that appear on Facebook Page.
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Again Facebook plays God and knows which pages to suggest to you! Today leading business solutions companies like SAS, IBM, SAP offer social media insights and analytics. And various brands have used analytics to personalize information and products. The following reiterates how exactly information collected is analyzed. COCA COLA WANTS TO SHARE MORE THAN ‘HAPPINESS’!
My Coke Rewards is a customer loyalty marketing program for The Coca-Cola Company. The site MyCokeRewards.com is a method that Coca-Cola had used to connect with its younger customers. By providing promotions and offering to this target base, CocaCola has effectively been in a winning position not solely to connect with its younger customers, however additionally use the website to collect a lot of knowledge regarding them and to treat them as more than just customers, that is exactly what today’s tech-savvy customers hope for. The result of this being between 2007 and 2008, the site visits increased by about 13000 percent.
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COVER STORY This model is implemented in brick and mortar stores too! Wonder how ? The following case of Target was a shocking example of how customer data is collected and analyzed and almost giving a new definition to the term intrusive species.
TARGET’S TARGETING YOU !
This was a fairly recent case where Target, one of the largest retailing stores in USA, send coupons for baby clothes and cribs to a customer. He was reasonably baffled and wondered as to why would Target try and encourage him to buy maternity related products. He had a complaint registered with the Target customer service. The manger was puzzled too and looked at the mailers send that contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manger called a few days later to apologize.
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However he was abashed to revert on his previous statement and said his wife was indeed expecting. This unsettling news of how Target received information regarding a customer’s pregnancy before her husband knew was based on the purchases done by his wife using their Target Guest Id number, which is usually tied to a credit card , or email address which acts as a bin to store purchase history. Her previous purchase cocoa-butter lotion, a purse large enough to double as a diaper bag, zinc and magnesium supplements and a bright blue rug said that there was an 87 percent chance that she’s pregnant. This detailed data analysis shows how company’s actually track and sneak around your purchase history to identify their future potential sales. Their basic idea was to analyse the shopper buying list and devise loyalty programs coupons and other promotional activities as per the customer. Now who wouldn’t want to shop in a hypermarket that knows which is your favorite ice cream flavor favorite, topping and brand!
JULY 2013
COVER STORY This is however not very prevalent in India as compared to other retail stores world wide. Analytical marketing is at a nascent stage where currently only social media companies are experimenting with them.
It shows how well are you currently engaging with your customers? Which modes do your customers prefer? What are their favorite social platforms or ideas they like?
Another aspect of analytical marketing is analyzing how your marketing initiatives are performing. It uses important metrics like ROI return on Investment and tries to provide a holistical view of marketing effectiveness.
It can predict what will your customers prefer? Which loyalty programs should be referred to what customers? What should be your next target audience?
In a nutshell it really tells you whether your doing your marketing the right or the wrong way! This data however is most effectively used in the social media platforms where data is gathered and marketing analytics consolidates it. From this you can gain insights to drive your marketing efforts forward. They provide a comprehensive view of the past, present and future.
How well have your previous campaigns performed? Were they profitable ?What was the ROI ?
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Analytics’ is like a virtual oracle which tells marketers how to leverage the data collected and where to put it to use. They use this to serve consumers better by giving a augmented service. However recently the issue of consumer privacy is growing rampant as to in what ways are the companies employing our data since users share a wealth of interests, demographics, geographic and social data with each other. Companies are using your intimate details whether you like it or no. So next time don’t be surprised if you receive coupons online for stuff that you don’t need ,when you may probably need them later.
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SPECIAL STORY THE ERA OF E-TAILING
THE RISE OF E-TAILING Electronic Retailing often abbreviated as ETailing is on the rise. Be it the sale of books or apparels, music or footwear, and for that matter even grocery, e-tailing is catching up with retailing faster and better. Today any mom-and-pop store or a brick-and-mortar store is being successfully replicated over the internet in the form of an e-store. Etailing today is prevalent not only for the B2C model but also for B2B & C2C models. Selling online, a recent phenomenon has become a raging hit as every brand is trying to take full advantage of the electronic media and does not wish to be left behind in gaining new customers and increasing their sales potential. Brands are realizing the need to go electronic and there is a concurrent rise of e-commerce all around the world. E-TAILING IN INDIA The E-commerce market today comprises 2.5% of the total Indian Retailing Market but is expected to account for 10% by 2020. E-tailing can precisely be called the next big thing in the retail market. The most sought after items in e-tailing includes airline tickets,
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hotel reservations, mobile hand-sets, books, apparel, shoes, accessories, bags, jewelry, computers, laptops and other gadgets. As the modern day Indian consumer is getting busier, the demand for online store is rampantly on the rise. Let us have a look at the major factors that are responsible for the growth of E-tailing. THE GROWTH OF E-TAILING: Let’s look at the reasons why E-tailing is promising & growing Increase in the purchasing power of consumers Access convenience of shopping Increase of Internet penetration Increase in consumer awareness Technological advancements However, the world of E-tailing has major challenges in front of it some of which include high average customer acquisition cost & high discounting strategy which might not be sustainable for a company in the long run. Also, Etailing requires an efficient and effective back end system. Nevertheless, to survive in this severe and cut-throat competition companies have realized the need to venture into the cyber space. Rapid growth of globalization has led to spread of E-tailing across the globe and is helping bridge the geographical gap.
JULY 2013
SPECIAL STORY Let us have a look at a few success stories in the field of E-Commerce to realize the rising importance of E-tailing in the current market scenario:
Amazon.com, an American multinational E-commerce company is the world’s largest online retailer today. Jeff Bezos, came up with an idea of online book store in 1995 and Amazon.Com was founded. It was an idea that not only changed his life but of everyone around him. Founded as an online book-store when books could only be bought from a brick-and-mortar store, he revolutionized the concept of selling by introducing something that was unimaginable at that point of time. Today, however, it is not just an e-store for books but has also successfully diversified into selling CDs, DVDs, video games, electronic appliances and more. The new innovations in the site are book reviews, links to related sites, site personalization and user reviews. It has proved to be an enterprise that has made consumers happy in every way possible.
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E-bay is the 1st success story of an online auctioning site. It has replicated and created a virtual market place successfully with the best deals for the buyers as well as sellers. It primarily caters to the C2C model and has extended to the B2C model as well; It offers a wide and eclectic selection of buyers and sellers and therefore is undoubtedly leading the market. It works on the principle of customer word of mouth and generates revenues from commission on sales and advertising.
Flipkart on the other hand is an Indian ecommerce company which was founded by two IITians and today is a company that boasts around 5000 employees. Founded in 2007, it focused on online selling of books at its genesis but on the lines of Amazon.Com diversified into electronic appliances and more. It has also launched its own range of products under the name of DigiFlip. From, 2007 to today, Flipkart has surely come a very long way! Today, no company can afford to ignore the growth of technology and rising internet penetration making cyber space retailing a reality for each and every firm. E-commerce not only lets the company increase its bottom line and top line but also helps it to go global. Looking at the current market scenario, one can undoubtedly vouch for the fact that the coming years would be packed with a lot of action in the cyber space.
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Hall-MARK CAMPAIGN ‘CONNECT WITH YOUR ROOTS’
L’Oreal Paris, India’s leading beauty brand sends out an exceptional message with its new ‘Stay Rooted’ campaign. Since its inception, L’Oreal Paris has built products based on the ‘Strength’ factor! Shampoos, Conditioners and other hair products emphasize the fact that it makes your hair stronger and more beautiful. And how does one get strong hair? It’s through their roots!
The campaign was kick started with the product ad featuring Sonam Kapoor which talks about how the shampoo helps strengthen your hair right from the roots to the tip. This TVC was then supported by a huge social media campaign. The 1.8 million fans of L’Oreal on facebook were then invited to write about that one special person who has influenced them in their lives and made them who they are today and thank one them through the 3 min short film created by them. Fans were also asked to share a picture of them with that special person and give reasons as to why they would like to thank them. The best entries were customised into a cover photo for their FB page.
Taking this very concept forward, L’Oreal has created a special and brilliant campaign known as ‘Stay Rooted’ to launch its hair fall repair shampoo ‘L’Oreal Paris Fall Repair 3X’. Based on the philosophy that a person gets his strength from their roots, L’Oreal created a film that features ordinary people from different walks of life reminiscing and thanking that one person who helps them connect with their roots!
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Hall-Mark CAMPAIGN To engage the customers further, L’Oreal encouraged its fans on Twitter to watch and share this film in return for some free gift hampers. #MadeMeWhoIAm asked users to watch and comment on the ‘Go back in time’ video. This was also extended with a contest asking participants to tweet with the hash tag to win goodies. A similar exercise was also followed with #IWillNotFall and #FallRepair3X. To create an emotional connect with its users, L’Oreal created a song called ‘Jad Se Judien’ sung by the Romantic ballad singer Mohit Chauhan. The song attempted at helping customers look into their past and find that one person who inspires them, who creates their roots and think of L’Oreal Paris Fall Repair in the process as a brand that understands the importance of a person’s roots in life as well as their hair.
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This campaign was a simple yet captivating one that takes L’Oreal’s brand proposition ‘Because you’re worth it’ forward. With a message that creates an emotional connect with its users by creating a single message which is staying rooted to promote their hair fall shampoo and being able to engage and create a conversation with your consumers were the highlights of this campaign. The idea was entrenched successfully in not only the TVC that featured the product but throughout all the content on their social networking websites. It is very difficult for a shampoo brand to differentiate itself from its competitors in this overcrowded shampoo market and L’Oreal Paris has emerged victorious in creating that single point of differentiation by touching the right chords with its consumers.
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BOOK WORM STRATEGIC BRAND MANAGEMENT Today’s marketers face new challenges. Customers hold lot of power. Consumer is time deprived and information rich. He expects good quality at low prices. Addition to that the marketing environment is becoming very competitive. It calls for meaningful change in the marketing practices. It is very important for the marketing executives to see marketing strategy as a driver to the corporate strategy. All values start and end with the customer. The business has only two basic functions, Marketing and innovation. Marketing and innovation produce results and other functions are just costs because only these two functions bring customers and money into the firm.
Mr. Kumar introduces the framework of three Vs: Value network, valued customers and value proposition and applies it to various cases. This book challenges the marketers to change their roles and make them more customer oriented. The book also shows various initiatives so as to put marketing back on the CEO’s agenda. It calls for marketers to be smarter, one step ahead by adopting new approach of 3Vs keeping aside traditional 4Ps.
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The book also talks about how marketing as a discipline could become more cross-functional and bottom-line oriented than before. The book argues that the companies must manage their brands better and they have to rationalize their brand portfolios sometimes. At last, this book is for those marketers who want to bring about a change in their companies by changing the corporate mindset towards marketing practices.
ABOUT THE AUTHOR “Mr. Nirmalya Kumar is currently a professor of marketing at London business school. He has authored seven books on marketing and business related topics. Marketing as strategy is the first book that he has authored.”
JULY 2013
FEATURED ARTICLES Will brand Infosys rise after return of NRN ? Ronak Shah, SIMSR N.R. Narayana (NRN) Murthy is back in Infosys as Executive Chairman at a time when the IT major has lost ground to rivals, and the stock has been among the worst performers in its league. It’s like Ratan Tata returning to Tata Sons! But for all we know NRN Murthy can take Infosys out of the current mess. To counter Tata’s example, Steve Jobs and Michael Dell have pulled it back successfully in the past. Infosys stock prices climbed sharply after the announcement; hence the pundits feel that bad days are over for Infosys. Murthy’s ability to manage Infosys is not questionable but the signals he has sent out indeed is. Growth in revenues and profits was the highest when company was led by Murthy and has declined steadily with each successor Nandan Nilekani followed by Kris Gopalakrishnan and S.D. Shibulal. It is said that a company needs entrepreneurial drive in its formative years, not when it is over 30 years old, billions of dollars in size, employs several thousands and has operations spread across the world. That is when the baton needs to be handed over to the professionals. It is the job of the founders to find leaders who can take over from them once critical mass has been attained. This has clearly not happened at Infosys.As reported by former CFO and
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head of HR of Infosys Mr. Pai, “culture of a founder-led and founder-centric governing model" has cost the company. Not that there is a shortage of talent in the company. Infosys has at least 100 leaders who could be CEOs of small, medium and large companies. Many of them have left and are CEOs elsewhere and performing well. They need to be given their day in the sun. The current structure could not have been more complex: an executive chairman, an executive assistant, an MD and CEO. Who makes decision? Who calls the shots? Where does the buck stop? Who to blame for dip in performance? Good management requires performers to be rewarded and laggards to be punished. Top heads would have been rolled in other company under such circumstances.
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FEATURED ARTICLES Had the CEO of Infosys been a professional and not founder, would he get more time? There were positive sentiments all around with Murthy’s return but how long will it pull the company out of the digs without training other leaders for the position.
when it was at 829800. It plummeted to 622971 in FY12, and in FY13, it dipped further to 379000. This is because new applicants do not see any scope for growth within the company and when rivals are performing better, paying better than why join a company with a glass ceiling.
Murthy’s return has fetched bad press and demoralized its senior leaders. It proves that board and nominations committee seems to have been ineffective in drafting a succession plan. The board seems to have found it difficult to find leadership both inside and outside the company. This shows that Brand NRN Murthy is perhaps stronger than Brand Infosys.
Lastly appointment of his son as executive assistant to Murthy questions the corporate governance of Infosys. At Infosys, it was said that founders will never send their children to work for the company. Rohan Murty’s appointment sent wrong signals in the corporate circles. According to Mr. Subramanian, MD of InGovern, The appointment smacks of nepotism. "Given that the average age of the company is 27, and there are many young leaders, it is surprising that the executive chairman found it important to groom his son and induct him as executive assistant, rather than groom youngsters in the company for future leadership," he says. Do we assume that now Infosys is open to scions of other promoters too? To sum up the tale, the halo around Infosys certainly stands diminished owing to BRAND MURTHY > BRAND INFOSYS!
Company said revenues will grow at 6–10% in recent communication in 2013-14 when the expected industry growth rate is 14% and rivals like TCS and Wipro have outperformed Infosys by a greater margin. The number of job applicants at Infosys has seen a steady decline since FY11,
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FEATURED ARTICLES Is Consumer Preference for brands with good cause on rise? Ashajyoti Parida, IMT Nagpur
“Election ke din agar aap vote nai kar rahe ho, to aap so rahe ho!!” This line instilled a sense of awakening in the hearts of millions watching the ad during 2007. 2009 elections were nearing, when Tata Tea (now Tata Global Beverages) launched the “Jaago Re” campaign all over. This was in bid to its major competitor HUL. It was aimed at increasing the number of voters in India and to provide social activism keeping government at toes. It had tie ups with “Janagraaha” a nonprofit organization in Bangalore which had been doing the pioneering work for the campaign. It addressed at least 780 million people, who were above 18 and eligible to vote. It also had provisions to register voters across 35 cities in India. It had its primary focus on colleges and companies across the nation to make them aware of the online voter registration process at www.jaagore.com.
The virality of the campaign knew no bound, resulting in a popular show across the nation. And the result was the popularity of brand “Tata Tea”. It then brought all the Tata brands of tea like Agnee, Gemini, and Kanan Devan under a single brand called Tata Tea. “Doing Good “and “Doing Well” were seen as different entities in traditional marketing. But now many of the brands club it under one head to carry out their business activities. The dynamic market today has a motto of “nonprofit – for – profit” as their focus.
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Various social activities and community programs are seen as the ladder in achieving strategic business goals. “Jaagore Campaign”. The marketing term defined for this is “Cause Marketing”. The TATA Global Beverages has been a well stratified example for the same with their “Jaagore Campaign”. According to the 2004 Cone corporate Citizenship Study, 8 in 10 American say that corporate support of causes wins their trust for that company.
A more significant finding of the report is the response, “I am likely to switch from one brand to another that is about the same in price and quality, if the other brand is associated with a cause”. “Cause marketing” has been on rise across recent years and has indeed affected consumer selection of brands to a great extent. A commitment of a business for a cause helps a company gain a breakthrough through the customer sentiments depicting empathy for the social cause. Aircel`s “Save our tiger” campaign has been one of such kind. It highlighted the need of the hour to save wild life resources.
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FEATURED ARTICLES With these campaigns customers feel attached to the vested motive of the brand and develop an affective commitment towards it. “Classmate” was launched by ITC with an intension for contributing Re 1 towards children education, for every 4 notebooks sold. Proctor & Gamble is no behind in strategizing towards a good cause. It has been into this segment of social cause since 1999. “Project Dristi” is with which it started a noble cause of sight restoration project in association with National association for Blind (NAB).
It made a successful effort to restore the eyesight of 250 girls across the country through corneal transplant operations. Whisper also supported the cause by giving Rs 1 per retail unit sold as a fund to the cause. In the process it registered an annual growth of 36% despite of the market competitions from low priced brands. social cause marketing. Recently it has also roped in popular figures to have an edge to their nationwide campaign “Siksha”. This time they have hit the bull’s eye, targeting the most important social problem of India- “Uneducation”. In association with Child`s Right and You and Sony Entertainment, they appeal to people and encourage them to contribute to the cause by purchasing large packs of Tide, Ariel, Pantene, Vicks and other product ranges of P&G.
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And the result was reasoned with With every unit of purchase they contribute Re 1 to the education of a child in India. It has lead to tremendous visibility of the brands under P&G. It is now the most preferred FMCG brand across. A recent advertisement by “Lifebuoy” with chapattis having messages on need of washing hands before eating has also made the brand widespread across. The intention is to make children learn the act of washing hands with soap to prevent the deaths under age of 5 due to Diarrhoea and Pneumonia in India. This strategy for “good cause” is no more an idle gimmick for brands. Nowadays it’s more of a sophisticated corporate strategy incorporated to maintain brand value and to penetrate maximum segments of markets by establishing an emotional relation with the consumers. It is indeed an important aspect where we can differentiate brands competing for similar products. It also adds values, and helps enhance a healthy brand image resulting in more consumer loyalty. While practicing this good cause marketing, it is also highly important to have continuity to the idea.
A discontinuity impacts negatively as it shows lack of commitment and vision for a brand. But otherwise, yes this practice is on rise in India and across the globe.
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SquAreheaD
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BUZZ PUZZLE
ACROSS 1. Which leading Indian antivirus vendor was started by the Katkar brothers as a calculator repair shop in 1993? 3. Which auto company has launched a Student Brand Manager contest for MBA students with a car being the first prize for the winner? 5. What is the name of the budget airline restarted by Lufthansa in Europe? 6. American Icon by Bryce G.Hoffman is a book on the turnaround story of which company? 8. Times of India has entered the field of higher education. What is this division called?
CLUES
DOWN 2. Which car has been rated as the best taxi in the world by BBC’s Top Gear program? 4. Titan markets Titan watches through World of Titan stores. Under what brand of store does it market other premium brands like Police, etc.? 7. Under what brand name is Titan launching fragrances in the Indian market ? 9. Which company has a vision to become “world’s hard disk” ?
ANSWERS 1. QuickHeal 4. Helios 7. Skin
2. Ambassador 5. Germanwings 8. TimesPro
3. Nissan 6. Ford 9. Dropbox
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Call for ARTICLES CALL FOR ARTICLES AUGUST 2013 Articles can be sent on any one of the following topics*:
1. The Ad cap from October: What will brands now do? 2. Publicis Omnicom Merger: Will it give rise to the Biggest Ad Giant? 3. How Big Data will Impact Sales and Marketing?
*Please ensure that there is no plagiarism and all references are clearly mentioned. 1. One article can have only one author. 2. Your article should be approximately 800-850 words and MUST be replete with relevant pictures that can be used to enhance the article. 3. Font Type: Gill Sans MT 4. Font Size: 14. 5. Send your article in .doc/.docx format to marksman.simsr@somaiya.edu 6. Subtitle line: Your name_Institute Name_Course Year 7. Kindly name your file as : Your name_Topic The best adjudged article will be given a Winner’s Certificate. Deadline for the submission of article will be : 20th August, 2013
THE MARKSMAN
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The Team
THE TEAM TWEETS by Nishant Singla It’s all about AD-itude by Mandar Dongre Brand MARK ive by Divya Damera COVER STORY by Smriti Sudhish SPECIAL STORY by Priyam Prasad HALLMARK CAMPAIGN by Meeta Khatri
BOOKWORM by Mandar Dongre SquAreheaD by Tavishi Agrawal BUZZ by Nishant Singla
The MARKSMAN is the newsletter of INTERFACE, the Marketing Club at K.J. Somaiya Institute of Management Studies and Research, Mumbai. Images used in THE MARKSMAN are subject to copyright. THE MARKSMAN does not take any responsibility of any kind of plagiarism in the articles receives from students of other colleges.
PROOF READ by Roma Sehgal
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DESIGNING by Divya Damera Richa Garg
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PROMOTIONS by Nishant Singla Meeta Khatri
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JULY 2013