Markathon

Mr. Anand Khurana, Business Head, Hindustan Unilever Ltd.

2011-11-10T22:19:00.003+05:30

An Interview with Mr. Anand Khurana
Business Head, Hindustan Unilever Ltd.

In this month’s Vartalaap we have with us Mr.Anand Khurana who is the Business head - Out of Home (F&B Services) & Modern Foods (Bakery) at Hindustan Unilever Ltd. He has a rich experience of 14 years with HUL and has worked in Modern Trade Channel, New Business Development, Key account management etc. He has also been the senior brand manager for hair care, responsible for brands of Clinic All Clear and Nihar.

Q1. You have had a long and illustrious career in marketing in the FMCG industry, with stints both in India and abroad while working for HUL. What are the key differences in the competitive scenario in the industry in India and abroad? What are the differences in terms of marketing?
Marketing quite simply is about understanding the consumer, his/her stated & unstated needs & developing & deploying a marketing mix (Brand Proposition, Product, Communication & Go-to-Market strategy) to fulfil that need. This basic premise remains the same everywhere in the world. However, the nuances of consumer tastes & preferences demand fulfilment options with respect to the retail store landscape, media evolution & consumption habits could differ by region/ country as much as they do between Mumbai & Muzzafarnagar.

Q2. You have worked in many diverse roles in HUL. What has been the most challenging task in your career till date?
HUL has so many different categories & a culture of moving people from marketing, sales to business operations which makes the experience very broad based & large. It’s almost like having worked in 5-6 different companies.
I have been lucky to have moved across sales, marketing, business operations in both the India business & International operations. Each stint has been very rewarding with different challenges across my tints in brands, exports & key accounts and business leadership.

Q3. HUL has recently opened Bru World Cafés in Mumbai. What spurred the company to enter direct retail for coffee? When can we expect the pilot cafes to spread to other cities?
A Café a logical extension for our coffee brand as the segment presents a great opportunity for not just consumption but also building brand experience & premiumization. It helps us move up the value chain from product to experience delivery. This is being done currently on a pilot basis

Q4. Can you tell us about HUL’s plans in the OOH (Out of Home) segment in the next 5 years? What is the strategy that you are looking at for Modern Foods?
More & more consumers are spending more & more time out of home, at Work (offices, colleges) Wait (at airports, railways) & Play (Malls, Multiplex, Leisure). This creates a large consumption and Brand experience opportunity. We have built a robust Beverages Out-of-Home business in the B2B space with our Lipton & Bru Tea/Coffee vending services, since 2002 & are look to continuing to scale that up rapidly. In addition we have entered the consumer OOH space with the Bru café and Swirls ice cream parlours. Modern Foods is a very large player in the Bakery Category which is very large. Unlike other FMCG, Bread is a perishable product & requires decentralized manufacturing & a daily distribution system. Modern as a brand has a lot of equity & we have driven aggressive growth by rejuvenating the Brand by making the packing more contemporary, introducing a lot of new products like kream rolls, chappatis, cookies etc. Our strategy is to continue to leverage our strengths in Daily distribution & Bakery technology to grow the business

Dr. Jagdish Sheth, Charles H. Kellstadt Chair of Marketing, Goizueta B-school of Emory University

2011-11-10T19:28:00.005+05:30

An Interview with Dr. Jagdish Sheth
Charles H. Kellstadt Chair of Marketing, Goizueta B-school of Emory University

In this month's Vartalaap from the academic world, we have with us renowned Dr. Jagdish Sheth who is widely regarded as the Father of Relationship Marketing. Dr. Jagdish Sheth is a renowned scholar and world authority in the field of marketing. His insights on global competition, strategic thinking and customer relationship management are considered revolutionary. He is the Charles H. Kellstadt Chair of Marketing in the Goizueta Business School at Emory University. Professor Sheth has published more than 200 books and research papers in different areas of marketing and business strategy.

Q1: You went to the US for an MBA from the University of Pittsburgh. How did you get interested in consumer psychology? Could you share some key insights in this field with our readers?
In my MBA class, I learned several theories of motivation, including Maslow's theory of need hierarchy. This led me to studying what motivates consumers and why consumers become loyal to a brand. What I discovered is that consumers, over time, reduce choices through learning and feedback from the purchase and usage experience; and eventually become loyal to a given brand. They buy based on habit often learned at a very young age for products such as toothpaste and cereals. Also, they do not consider more than three brands in any given product category. This was contrary to prevailing belief in economics that consumer choose logically and not psychologically by evaluating difficult choices in a rational manner.

Q2: ‘Emerging Markets to Define Marketing’ read one of your recent interviews. It has been said that India is a country where value conscious thriftiness coexists with experiential indulgence. What is your take on this in the light of your statement? How can companies better understand consumer India and in turn bring forth a new definition of Marketing?
You are very right that Indian consumers are very value conscious. However, there are three reasons why the same consumers are also engaging in experiential indulgence. First, they are more aware of new experiences such as visiting the seven wonders of the world including Taj Mahal, going on safari and cruises as well as attending meditation camps. Social media and cable channels such as Discovery and Animal Planet have increased public awareness. Also, many of their friends, classmates and family members who have settled abroad and their children are in touch with one another. Second, consumer aspirations are rising to be more contemporary and they experience foreign cuisines such as Italian, Chinese and Thai, as well as Domino's Pizza and McDonald's. This is also true about fashion, cell phones and consumer electronics. Finally, there is new affordability. The wages of service workers and professionals have risen sharply. This enables them to experience small luxuries in life. Therefore, the new definition of marketing is "Luxury for the Masses".

Q3: In the current scenario where loyalty programs are a dime a dozen, how can companies ensure customer loyalty and in turn customer retention? What are the new trends emerging in this area?
Loyalty programs work well only if the product or service experience is exceptional. This is true across all services ranging from airlines to cell phones. It is also true for retails stores, hotels, restaurants and coffee shops. Therefore, the best way to retain customers is consistent and superior customer experience. The new trends in loyalty programs are to use social media and product experience to generate customer cult. The best examples today are iPhone and iPad and stores like Apple stores.

Q4: In your book ‘Chindia Rising’, you speak about the shift of the pivot of businesses from the Western world to India/ China. How do you think Indian Managers can train themselves to become global leaders? Where is the Indian Education System lacking in this aspect?
The necessary foundation for Indian managers to become global leaders is to have a global mind set. Most managers, all over the world, are usually ethnocentric. Indian managers are no exception. The best way to increase global mind set is to encourage them to manage businesses abroad especially in non-English speaking countries and cultures. It is not enough just to visit. You must have deep immersion in other cultures and customs.
With respect to the education system, there are several options. First, make study abroad mandatory. This is almost universal in all Executive MBA Programs which include one to two weeks of overseas education and learning. Second, invite foreign students to be part of a cohort. The ideal proportion is one third of the total student population; and they must come from different cultures and countries. However, I believe the most transformative option is to insist on Indian faculty to teach and research in foreign countries. In other words, what we need is a Faculty Abroad program in addition to student abroad programs.

Q5: In your illustrious career as an academician, professor and consultant; what has been your greatest learning? What continues to drive you in the field of marketing?
The greatest learning I have experienced over five decades as an academician, professor and consultant is that the best way to learn is to teach. What continues to drive me after 50 years is passion to learn about new areas. This has ranged from consumer behaviour to multivariate statistics to competitive strategy to relationship marketing. My latest passion is impact of emerging markets on marketing.

Q6: What would be your advice to students in business schools, looking to make a career in marketing?
I have three pieces of advice. First, learning is a lifelong journey. It does not stop with graduation. Therefore, make sure you are learning new knowledge while you are working. This will be more and more critical as the half-life of knowledge declines sharply. Second, the best way to learn is to teach. Therefore, find ways to teach at a nearby college or school. If nothing else, get invited to make presentations in your organization's training centres. Finally, learn to give back to the society. Please remember how fortunate you are to be blessed by your parents, your teachers and your mentors. They made a difference in your life. Think of what you can do to make a difference in the lives of others.

Markathon October 2011

2011-11-07T00:08:00.008+05:30

Dear Readers,

Customer engagement has become an integral element of marketing for all companies today. They want to talk to the customer, listen to the customer’s feedback and act on it. The recent course I took on Integrated Marketing Communications only reinforced the fact that, brands today are emphasising a lot more on media that enable a 2 way communication with the customer rather than just broadcast media. These media, help companies reach out directly and get first hand insights from their customers—Companies want to have conversations with their customers and convert these conversations into actual transactions. Being in the customer’s mind is what every company is aiming for and there are various ways they go about it. One of the ways companies do this is Corporate Social Responsibility. CSR is a way of giving back to the society, but it is also about creating a good image for the brand. The line between doing good and doing it for the sake of brand building seems to be getting blurry. “Greenwashing” has now become a common phrase for companies which do green initiatives just for getting a positive image. In this month’s cover story, we’ve tried to ask a simple question ‘Does CSR really help in building brands?’. In the story, we look at different companies and what CSR means to them some of them who have really been successful in leveraging CSR to their brand’s advantage and also some who haven’t been so successful at it. We hope you enjoy the story!

In this month’s Vartalaap we have with us Mr. Anand Khurana who is the Business head - Out of Home (F&B Services) & Modern Foods (Bakery) at Hindustan Unilever Ltd. Mr. Khurana talks to us about how HUL is focussing on its Out of Home division for increased profitability. We are thankful to Mr.Khurana for taking time out to talk to the Markathon team.

In our Vartalaap from the academic world, we have the renowned Dr.Jagdish Sheth who is widely regarded as the Father of Relationship Marketing. Dr.Sheth is currently the Charles H. Kellstadt Professor of Marketing at the Goizueta Business School of Emory University. He gives us a wonderful interview about how important it is to have a good relationship with the customer. Team Markathon is extremely grateful that Mr.Sheth took out time from his schedule to give us this exclusive interview.

Our articles section has an article of how companies are leveraging different media to understand what the consumer wants and then deliver it to the customer in exactly the way he desired. The other article about new Marketing Channels for retailers describes the new delivery mechanisms which are now being tapped by retailers thanks to growing use of technology. We are sure our readers will enjoy both the articles.

As always, do send us your feedback and suggestions for the magazine on markathon.iims@gmail.com .

Sit back and enjoy this edition!

Jitesh Pradeep Patel

Markathon September 2011

2011-10-14T23:31:00.005+05:30

Dear Readers,

India is all set to witness its first ever Formula 1 Grand Prix at the Buddh Circuit in a few weeks’ time. It is good to see the amount of buzz being generated for F1 racing in a traditionally cricket crazy country like India. Hosting a big ticket event like a Grand Prix is the surest way of popularising the sport in a newer country and the Airtel Indian Grand Prix will do just that for the world of motorsport racing. The idea of having an F1 race in India was first mooted by the then Andhra Pradesh CM Chandrababu Naidu in 2003. The deal fell on the backburner after he lost the next election and also due to anti-tobacco legislations. In 2007, Noida was finalised and the venue and in just 4 years India is ready to host one of the world’s most popular sporting events. This is a good sign for Indian Sports and one can only hope that such premier events are brought to India across other sports as well.

The other sporting event, closer to us here at Shillong is the 4^th Season of IIM Shillong Golf Cup. This unique initiative started in 2009 aims to bring together the world of B-schools and the corporates providing a platform for budding managers to connect to the corporate leaders. We are very proud to have been the first ones in the country to come up with a Golf Cup and this year promises to be bigger and better than the previous editions.

All the sporting activities going on around us made it easier for us to zero in on the theme for our cover story. The cover story for this month ‘Sports Marketing’ analyses the business going on in the world of Sports. As Sports fans, we are usually unaware of how serious the business of sports is. The cover story dives deep into different aspects of Sports Marketing and brings in analogies of Sports Marketing with how products and services are usually marketed. We are sure the readers will find the story an interesting read.

Our Vartalaap for the month is in sync with this month’s theme. Team Markathon interviewed Mr. Harsha Bhogle, perhaps the most famous presenter on Indian Television today. Mr.Bhogle talks to Markathon about his career as a commentator, tv show host, author and a host of other roles. He also speaks about how the Indian Sports scenario is changing and the fact that Sports being seen as a business is good for the development of Sports in the country. We thank Mr.Harsha Bhogle for taking out time from his busy schedule and accommodating our requests for an interview. We also have Mr.Pradeep Bhardwaj who is Assistant Professor in the Marketing Division at the Sauder School of Business. We are pleased to have his interview in Markathon.

In the articles section, we have a fascinating article which examines the recipe for the success of Anna Hazare’s hugely popular Lokpal Bill campaign. The article breaks down the ‘ 7 sutras’ that contribute to its success and looks at each one of them closely. We also have an article ‘ Branding at Different stages of the Lifecycle’ which elaborates on different tactics used for branding a product throughout its lifecycle.

As always, do send us your feedback and suggestions for the magazine on markathon.iims@gmail.com .

Sit back and enjoy this edition!

Jitesh Pradeep Patel

Markathon August 2011

2011-09-10T16:30:00.006+05:30

Dear Readers,

The course on Consumer Behaviour last term probably hasn’t made it easier to understand today’s consumer, in fact, it only made me realise how complicated consumers are. As Marketers, no matter how hard one tries to decipher the psyche of the customer, the customer almost always behaves unpredictably. The one person who went against all odds, and got most of this products bang on target with the customer’s needs and their behaviour was Steve Jobs. Apple Inc. will surely miss Jobs who has been called the ‘shrewdest marketing brain’ of all time and is often talked of in reverent tones even by his fiercest competitors.

Some categories make consumer behaviour an even more interesting and bewildering subject. The tobacco industry and cigarettes make up one such product category. India does not allow Cigarettes and other tobacco related products to be advertised in any of the mass media formats. The cigarette giants have often used the Surrogate Advertising concept to create awareness about their brands. Our Cover Story for this month – ‘Smoky Realms’, takes a deeper look into the 4P’s of the cigarette industry and also an added 5^th P – Popular Culture – which has played an influential role in creating the ‘image’ that cigarettes have in the mind of the common man. We have tried staying away from the health and legal issues and instead focussed on how companies operate in this hyper-competitive and one of a kind industry.

Our other articles in this month’s issue also relate closely to consumer behaviour. The article on NeuroMarketing takes us into this rapidly emerging field which tries to understand how the consumer’s minds react to various stimuli and how this is useful for a marketer. The other article discusses how some companies have managed to manipulate the consumer to the companies’ advantage and capitalise on some of their ‘guilts’.

We also have a very special article contribution for this month. The article on Strategy for Inclusive Growth by Samaresh Shah (Sr. Business Manager at Capgemini) discusses how holistic development holds the key to the future. We thank Mr.Shah for taking out time from his busy schedule and penning down his thoughts for Markathon.

Our Anniversary Edition, which was a Vartalaap Special was very well received by one and all. We thank the readers for their feedback. Taking cue from the fact that the interviews were enjoyed by all our readers we have decided to have two Vartalaaps every month. One each from the Corporate world and the leading marketing academia from B-Schools around the world. For this month, we have Mr.Hasit Joshipura who is currently VP South Asia and Managing Director, India for GlaxoSmithKline Pharmaceuticals Ltd. He gives us wonderful insights into how GSK has managed to sustain a leadership position in the Indian industry over the years. From the world of academia, we have Mr.Venkatesh Shankar , Coleman Chair in Marketing, Mays Business School, Texas A&M University and is also a visiting faculty at the Indian School of Business , Hyderabad.

As always, do send us your feedback and suggestions for the magazine on markathon.iims@gmail.com .

Sit back and enjoy this edition!

Jitesh Pradeep Patel

Markathon Anniversary July2011

2011-08-02T16:30:00.009+05:30

Dear Readers,

Anniversary editions are tough. There is pressure all around. Pressure to hold up the legacy of the brilliant work done by the previous teams and pressure to live up to the expectations of the readers.
With these things on our mind, the editorial team took up the challenge of doing something very different with this edition, something that would leave a mark. A few brainstorming sessions later, the idea of a Vartalaap special was born. The Vartalaap section of our magazine has always been an extremely popular feature and this prompted us to go for an issue which only had interviews. Over the past 3 years we have had some of the best names in the field of management grace the Vartalaap section of the magazine. Vartalaap has also interviewed leading personalities from the corporate world. The challenge however, lay in the fact that we had to have not just one interview but a magazine comprising of interviews only.
I am thankful to the entire team for working hard and getting in some of the biggest names in the world of marketing. We have authors, brand consultants, academia and some of the biggest names from Indian business. I cannot help but thank Sria Majumdar for the hard work she has put in to get these eminent personalities interviewed for our magazine. Without her contribution, this edition would not be half as good as it is.
Team Markathon also expresses its heartfelt gratitude to each and every one who agreed to get interviewed for the magazine. They were really patient with our team and gave us some excellent interviews. We realise that they took time off their busy schedules and consented for being interviewed for this edition.
I am very grateful to the design team of the magazine for infusing the interviews with wonderful images and colours. They have been enormously patient with the enormous number of last minute changes and edits I’ve sent to them.
Last but not the least; I am thankful to the faculty and administration at IIM Shillong for providing support to the team at every juncture, not only for this edition but throughout the years. A large part of the magazine’s success is due to their unwavering support.
Without further ado, Team Markathon gives you its 3rd Anniversary edition.
Sit back and enjoy this issue!

Jitesh Pradeep Patel

Markathon June 2011

2011-07-06T15:07:00.013+05:30

Dear Readers,

As I sit down to write this editorial, the one word that is ruling the entire cyberspace is “Plus”. It has been only a day since Google launched its social networking feature called Google Plus and there is a huge clamour for the invites. Google has always come up with innovative applications and features, but has failed to capture the Social Media generation which has moved past the out-dated Orkut. Google Wave and Buzz were supposed to lure internet users away from Twitter and the likes but failed miserably. The initial response to both these services was huge as well, so it remains to be seen whether Google Plus can sustain user interest and hold its own beyond the initial hype surrounding it. A very big advantage for Google is they already have a substantial user base in their other services Gmail, Picasa, Youtube and a host of others. Google Plus is also offering users more security addressing the data privacy concerns which have recently started haunting Facebook users. Google has always been a good marketer of its services; the problem has been with the monetisation. Google Plus is no different; Google has to figure out how to make money from it once it crosses the barrier of acceptance by the users. They need to find a revenue stream which can complement the one from its search engine ads which drive most of Google’s growth.

Moving on to an entirely different sector, Toyota has launched the Etios Liva which is their cheapest car for the Indian market. Toyota aims to garner a large chunk of the Indian auto market. Team Markathon had done a Cover Story covering the Etios launch way back in December and predicted its success. It makes us happy to see that our prediction for Etios was right and Etios has shown a commendable sales volume since its launch. Toyota has gotten its positioning right and the Etios Liva should also see consumers queuing up to buy the car.

Talking about launches, the biscuits category in India has seen a wide variety of newer products hitting the market. The biggest launch was undoubtedly the Oreo cookies launched by Cadbury India, as a part of the Kraft Foods group. The Indian Market has a vast array of offerings and Oreo will have to do something special to gain a space in the minds of the consumer. Our cover story for the month “Cookies, Crackers and Creams” digs deep into the various segments under the biscuit category and gives you a view at the market trends and leaders.

In this month’s Vartalaap we have Mr. Russell S Winer who is the Chair of the Marketing Department at the Stern School of Business, New York University. Mr Winer shares with us his ideas about Product Management, Brand Management and Strategy.

Do give us your feedback about this edition and suggestions for the magazine at markathon.iims@gmail.com.

Sit back and enjoy this edtion!

Jitesh

Markathon May 2011

2011-06-10T12:19:00.009+05:30

Dear Readers,

The long, hectic cricket mania has concluded after the back to back World Cup and IPL, if only for a short while. The viewer’s attention will now shift to our country’s second obsession: Bollywood. We eagerly await some major releases to hit the silver screen in the weeks to come. Recently, Kay Kay Menon made a very interesting observation about the current crop of ‘commercial’ movies. He said“Marketing has taken over content today and I have serious objection to that. It is the job of marketing people to think of creative ways to publicise a film. Just adding an item number in the film is not marketing “. The marketing expenses of low budget movies are constantly skyrocketing. In some cases they are as much as the movie budget itself. Filmmakers realise the need to grab eyeballs and attempt to maximise their collections for the first weekend, which usually connote the efficacy of the publicity. Big budget movies rely on their star power for marketing gimmicks. But beyond that first week, it is solely the content that makes or breaks the movie’s fortune at the box-office. For now, Marketing is here to stay as an essential ingredient of a movie’s success.

As regards the realm of advertising, the Information & Broadcasting Ministry has, at long last, woken up to take some stringent action against “suggestive advertising”. This action was in response to certain deodorant and talcum powder companies resorting to ‘indecency’ in their advertisements. The Government’s moral policing, for once, seems valid, and hence agreeable. Some of the aforementioned advertisements undeniably cross all limits in demonstrating how ‘effective’ their products are. The ministry has asked the Advertising Standards Council of India to enquire into the matter and submit a report in 5 days. The advertisements are expected to go off air in most probability. Till then, there seems to be a flurry of these advertisements swamping the television channels. It might be a case of companies wanting to make the most of their soon to be curtailed freedom.

Moving onto our cover story, the editorial team at Markathon wanted to bring you an Industry which has been much talked about and is yet at the receiving end of numerous misconceptions. We zeroed in on the Pharmaceutical Industry, which is a lot more than just ‘generic drugs’. Our cover story for the month, The Pharmaceutical Industry in India : Demystified, walks you through the amazing success of the industry and how the major players have contributed to it.

For this month’s Vartalaap, we have Dr. Ajay Manrai , who is a PhD in Marketing from Kellogg School of Management and is also the recipient of the prestigious Fulbright-Nehru Research Scholar award. Dr. Manrai gives us glimpses into the world of international marketing, competitive marketing in India for the next decade, and much more in a wonderful interview.

As always, we would love to hear your comments about the magazine. Write to us at markathon.iims@gmail.com.

Sit back and enjoy this edition!
Jitesh

Markathon April 2011

2011-05-05T13:06:00.003+05:30

Dear Readers,

It is that time of the year again, when the B-schools students find themselves undergoing the Summer Internship, exploring the world of marketing on a first hand basis for probably the first time. The experience is surely going to be one filled with learning and understanding how the ground reality is different from what we’ve read in our books- Kotler and the likes.

The one question that was on all Media Buying companies, WC or IPL, seems to have been answered for now. The IPL viewership figures have not been very encouraging compared to the WC which was a runaway hit. Maybe the latter part of the IPL might see some better numbers.

One campaign that has caught my eye during the IPL has been that of Cadbury’s rejuvenated “Kuch Meetha ho Jaaye” one. It is a very smart move by Cadbury which is trying to position Dairy Milk as a post mean dessert snack which might reap rich dividends. This moves away from the normal positioning as a chocolate for special occasions and festivals.

Markathon has always strived to bring you the best analysis and content related to the domain of marketing. In continuation with this singular objective, Markathon is proud to announce that we are starting a brand new feature from this edition. We have Mr. Martin Lindstrom, Bestselling author and premier Brand Consultant, giving us his wonderful insights about Brands and buying behaviour of consumers. In this month’s edition, we feature his thought provoking article, Smash Your Brand, which talks about how a brand’s logos should be designed to maintain its identity even when smashed into pieces. We are bringing this feature as syndication in association with The Martin Lindstrom Company Ltd. Markathon thanks them for giving us access to the wonderful article base.

Our cover story for this month is on Brand India. Much has been talked about how India is emerging as a brand after liberalisation. In our story we explore what Brand India means and how it is evolving. We dig deep to identify the meaning of a Country brand and the origin of the term Brand India. We also look at how the Government is working for Brand India as well as what it has done for the ‘Aam Aadmi’ of the country. I am sure you will find the story a fascinating and informative read.

In this month’s Vartalaap we have a very special guest, Mr. Vivek Mehra who is the MD and CEO of Sage Publications India Ltd. He gives us a wonderful interview running us through the world of publishing and also SAGE publications’ Legends of Marketing Series.

Happy Reading!

Jitesh

Jitesh Pradeep Patel

Markathon March 2011

2011-05-05T12:57:00.007+05:30

Dear Readers,

As I sit down to write my first editorial, there is one thing at the back of my mind and everyone else too. India vs Pakistan at Mohali. The World Cup has grabbed viewers’ eyeballs and the headlines of all the newspapers across the country. If the last WC in 2007 was an advertiser’s nightmare, this one has been a dream especially since all the subcontinent teams are still in the fray.

The viewership has been off the charts and just the group matches had a higher cumulative viewership than the IPL Season 3. All the questions about where to put in advertising money, World Cup or IPL , have been put to rest with such astounding viewership numbers. This coupled with the Official Internet viewership is a clear indicator that the World Cup has a better appeal than the IPL.

There have been loads of marketing campaigns built around the world cup. From the downright disastrous to some smartly crafted ones. The Vodafone Super ZooZoo has been a runaway hit. There has been one campaign though which I found to be very well made and has somehow not made much of an impact, the Sprite University of Freshology campaign has slowly positioned Sprite as the smart, sassy, young people’s drink from its earlier image of being a thirst quencher (Sprite bujhaaye pyaas campaign).

The tagline which they have adopted now is ‘First drink, then think, Sprite – University of Freshology. The campaign should help establish Sprite as a refreshing drink and cement its position as the No:2 drink for Coca-Cola Company in India. We need to see more such intelligent campaigns in the Indian media.

With the summer round the corner, the market for the Non Alcoholic Beverages is witnessing a lot of skirmish. In this month’s Cover Story we look at three such beverages and how the landscape is evolving with newer players coming in and lots of newer drinks in the pipeline for launch.

In this month’s Vartalaap section, we have Mrs. Priya Raghubir, Professor of Marketing at Stern Business School New York University. She gives us great insights into Consumer Psychology, aspects of pricing and her experiences from being a student at IIM Ahmedabad to a Professor at a premier Business school.

I would like to place my gratitude on record for the outgoing team who have done an outstanding job with the magazine. I along with all the members of the incoming team would endeavour our best to live upto the high standards already set for Markathon. This magazine is a collaborative effort involving all the excellent team members. I thank each and everyone one of them for the part they play in bringing the issue out.

Happy Reading! J

Jitesh Pradeep Patel

Markathon February 2011

2011-03-10T13:58:00.006+05:30

Dear Readers,

The World Cup fever is up and running, now that slowly and steadily we are moving towards the business end of it. The minnows, if I may call them that with due respect, have as expected caused a few upsets. But as far as I am concerned the match that has been the ONE of this world cup so far has been the tie between India & England. No doubt the match in itself was a roller coaster ride, but what has left An indelible mark in my mind and many others’ too post that match was the suspense breaking launch of Vodafone’s Super ZooZoos. To denote the huge shift in technology from 2G to 3G, ZooZoos have become Super ZooZoos to communicate Faster, Smarter and Better services with Vodafone 3G.

To launch the ZooZoos this time around, Vodafone have taken a different approach. It launched four teasers almost a week before to create a buzz for the upcoming ZooZoos. The teasers left people guessing what Vodafone is supposed to announce this time. The telecom giant had used all the mediums for a week long teaser campaign. Vodafone even had an exclusive tie-up with NDTV Group to present the teasers in the form of Breaking News Alert.

The inspiration for Super Zoozoo, apparently is that it’s like ‘Superman meets Rajinikanth’ – Rajinikanth style with Superman’s powers. It’s all the clichés of superhero films – like using the eyes as a laser and so on.

Vodafone, have a got a hands down winner in their stables, yet again! J

In this month’s Cover Story, we look at and analyse the Private Labels that are rising from strength to strength and giving the established players a run for their money. We were prompted to look at the strength of the Private Labels after the recent spat between some of the retail chains and Reckitt Benckiser. The retails chains countered the announcement of margins being cut by stocking their own labels replacing some of Reckitt’s products. We analyse what makes the labels click and why brands are increasingly concerned about the labels.

In this month’s Vartalaap we have Mr. Douglas Holt, who talks to us about Branding in the Socio-Cultural context. Mr Holt, who is currently Professor of Marketing at Said Business School, Oxford University has authored a couple of books on Cultural Branding and gives us valuable insights on how cultural issues are necessary to keep a brand ticking.

We also have a special feature talk with Mr. Seth Godin, one of the most renowned marketers in present day marketing. He shares with us some wonderful insights ranging from his favourite book, his idea for Permission Marketing in India, his views on the world of blogging and much more.

Moving on, it has been exactly a year since I took over as the Editor from my illustrious seniors and these past twelve months have been nothing short of an exhilarating roller coaster ride. In this period I have interacted with a number of corporates & academia, written and read a number of articles from some of the best minds in the country and also interacted with them. All this has taught me innumerable valuable lessons which would stand me in good stead no matter where I go.

Coming out with a monthly magazine is by no means an easy task, and to have done this month after month, without fail, is solely because of the team I had that was backing me up, behind the scenes.
This bunch of marketing enthusiasts has shown me what Markathon meant to them, by the sheer effort and passion they have displayed. I am forever indebted to my editorial team including Debanjana Sinha, Samita Srijaya Patnaik, Samrat Singh Yadav, Saurabh Kumar Sinha & Varshik Nimmagadda.
I would like to place on record my gratitude to two of the most patient souls I have worked with, my designers, Keshav Sahani & Priyanka Pandit, without whom Markathon would not be complete.

I would also like to thank the faculty, especially Prof. D.K.Agrawal and the administration for their unwavering support through thick and thin.

Last but not the least me and my team would like to express our sincere gratitude to YOU, our readers and contributors without whom this dream called Markathon wouldn’t have turned into reality.

Now it is time for us to pass on the baton to our juniors who we believe will continue to strive and give you the best in marketing and ensure that Markathon becomes an iconic brand.

It gives me great pleasure to announce that Jitesh Pradeep Patel would be the next Editor, Markathon, supported by his able colleagues, Gaurav, Kaustubh, Rahul, Ritika, Sana, Sria & Yashwanth.

We hope that you continue to shower your love and blessings on them as much as you did on us and more J.

Signing off for one last time on behalf of the entire Markathon team J

Happy Reading.

Goodbye! J
Love & Regards
Kaushik

Markathon January 2011

2011-02-09T22:16:00.002+05:30

Dear Readers,

As I write this editorial the screaming headline that caught my attention was the entry of the iPads in India. This gadget has earned the title as the fastest selling gadget ever. Within a year of its launch, it has sold nearly 15 million units, earning close to $10 billion in revenue. It was first launched exactly a year ago in the US on the 27^th of January, 2010 and was up for grabs since April 2010. Considering the launch in India has been pretty delayed, also taking into account that it was launched in Hong Kong & Singapore in July 2010.

Now why am I talking about the iPad in a marketing magazine? Yes, the brand Apple in itself is a case study in itself for budding marketers. But here am talking about the effect that the iPad/tablets as a product category can have. It has the ability to change the face of marketing. I will tell you why. Just the game changing nature of the product is mind boggling. Industries as varied as entertainment, media, gaming, business solutions are waiting to see the long term effect of iPad per se and tablets in general with bated breath. An entire ecosystem is getting created around the iPad. Applications for Apple products are a flourishing industry. Most apps available will go pay sometime in the future, creating a new stream of revenues for content producers. Mobile advertising that has been an enigma to advertisers since time immemorial due to the small size of phone screens can now come of age owing to the larger screen size of tablets. For advertisers whose primary complain is their inability to reach out to an increasingly fragmented market, tablets will offer a new opportunity of creating targeted messages for a well defined TG. The introduction of iPad and other tablets sure is going to ensure exciting times ahead for marketers.

In this month’s Cover Story we have decided to look upon the most popular newsmakers in the world of marketing.The top stories that captured the audience of the consumers, the latest innovations that caught the eyes of advertisers, brand turnarounds, new ideas employed by FMCGs to get closer to the consumer and much more.

In Vartalaap, we have Ms. Anjana Vivek, the founder of VentureBean Consulting, a venture consulting firm and a Guest Faculty at IIM Bangalore. She shares her thoughts on the Venture Capital industry in India and the changes that have occurred over time, what are the factors that are considered while funding a new venture and the importance of marketing in the success of a start-up.

Hope you like the issue as ever before and looking forward to your precious feedback as always. Signing off and wishing you a happy and prosperous new year once again on behalf of the entire Markathon team.

Happy Reading!

Kaushik Subramanian

Airtel Rebranding: Will it bring Airtel closer to what it desires

2011-01-12T15:35:00.003+05:30

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Krishna Kumar | KJ Somaiya

Airtel Rebranding: Will it bring Airtel closer to what it desires?

Airtel is one of the Indian MNC’s that has made it big in the global arena, thereby becoming the world’s fifth largest telecom operator, catering to around 200 million customers across 19 countries. The Rebranding has elevated the brand Airtel to the “Global Player” league. It provides Airtel a much needed instant and uniform recognition across the diverse international markets in which it operates.

The change in the brand identity is very essential as Airtel is no longer restricted to the voice-based services alone. It is all set to create new milestones in the application based services also, with the introduction of the 3G services. This transformation of the brand of Airtel needs to be emphasized to its growing customer base. The rebranding has infused a lot of youthful energy into the brand Airtel that has been in the maturity stage of the Product Life Cycle for quite some time and would connect well with the young Indian market.

This new avatar would bolster the emotional connect that Airtel shares with its loyal customers, while also exciting new customers since it has conveyed its willingness to face the challenges of the ever changing telecom market. Statistics reveal that facing challenges and emerging victorious is nothing new to this Indian warrior. Airtel is fully equipped to re-write its success story once again, this time with an all new brand outlook. Go Airtel, Go!!

Counter View

Sukesh Gain | FMS, Delhi

Airtel Rebranding: Will it bring Airtel closer to what it desires

In 1995 Airtel was launched with a very distinctive logo and popular brand-tone composed by A. R. Rehman. For Airtel, the former logo was a simple, innovative and refreshing symbol. Currently Airtel is offering services in 19 countries. With this increasingly global identity, it has become necessary for Airtel to build a monolithic brand name across all markets. Airtel has embarked on this ambitious journey of consolidating its brand through its specially crafted new logo and repositioning exercise.

Numerous critiques have indicated the new logo as a refined version of Zain Africa's logo however the more pertinent question is whether Airtel will be able to achieve its goal of global positioning. Is it worth spending Rs 300 cr on repositioning rather than improving its customers service and infrastructure? The current logo could also confuse the customer, given its semblance to new Videocon, Vodafone and Zain Africa's logo. On the other hand, the evolved logo brings with it an international appeal. The new signature tune, being a balanced medley of both Indian & African cultures, plays the dual function of retaining the warmth & sensitivity of the older tune while simultaneously addressing a larger panorama of global customers. The lowercase of the logo signifies humility with the font showcasing a dynamic force of “unparalleled energy” while the red colour signifies heritage, energy and passion.

The new commercial with new faces, new tune, new logo tries to portray new services Airtel is ready to offer. “Dil jo chahe paas laye !!” The emotionally rich new campaigns ‘Street Performer’ and ‘Endless Goodbye’ give rise to the idea of a new brand in a beautiful manner. On the other hand these new commercials and posters featuring foreign models and foreign locales could possibly loose its connection with Indian customers.

In either case, it is too early to comment whether the re-branding efforts by Airtel is timely or not. It continues to remain a testing time for Airtel.

Uncharted Territories

2011-01-12T15:26:00.006+05:30

Jitesh Patel, Rahul Mantri, Ritika Nagar | IIM S

Uncharted Territories

Automakers in India exploring the road less traveled…

Behold the turtle; he makes progress only when he sticks his neck out. (Bruce Levin)

For the turtle, sticking his neck out is essential to move forward. The automobile companies in India are doing just that – sticking their neck out. India is poised to become one of the largest automobile markets in the world and to succeed in India, companies are entering uncharted territories. Territories which they have shied away from until now. Tata made the cheapest car in the world keeping in mind the Indian customer and the world took notice. Now, Toyota has, for the first time come out with a small car, the Etios which has been designed completely based on the needs of the Indian market. Maruti is coming out with Kizashi; a D-segment car which is a first for Maruti Suzuki . Tata Motors is aiming to create a new segment altogether with the launch of its car Aria deemed to be India’s first crossover car. We take a look at the reasons for these business decisions, the strategies being employed for their success and also on how the market might react to these offerings.

The Toyota Etios – Toyota’s first “Indian” car

The Etios has been in development for 4 years, employing over 2000 engineers from Toyota’s Indian and Japanese operations. The Japanese major is investing Rs.3200 crores to set up its manufacturing facility in Bangalore. It has been designed keeping in mind the minute preferences of the Indian consumers. Toyota says it is the first and last ever low cost sedan coming out of their stable. Etios was recently launched with much fanfare (A.R.Rahman was there for the launch) and has been priced in the range of 4.96 lakhs to 6.84 lakhs.

The Etios was born out of the need to compete in the very lucrative and high growth compact car market in India. Toyota is something of a non-entity in the emerging markets in terms of market share volumes and with Etios it wants to change that. A small car is essential to gain foothold in the rapidly developing countries. Toyota believes that entering the right segment with a car such as the Etios will be a winning proposition for them in the long run. Toyota’s usual plan of action has been to design cars for the developed world and then sell watered down versions of the same car to the developing nations. This attitude restricted its scope of expansion in the emerging economies. Etios is a car that has been designed solely for the Indian context and it will be launched in other developing nations as well.

The tagline for the Etios is “World First. India First.” which emphasises Toyota bringing its world class quality and engineering skills to meet the demands of the Indian people. The promotional campaign stresses that the Etios is in a class of its own and has no competitor as such. Toyota did a road show of 25 cities to reach into a wider market in India; it currently has presence only in 15% of the Indian market. The market penetration is essential for Toyota since it currently has costlier cars which are largely based in the metros and Tier-I cities. To ensure Etios is successful, the expansion is necessary and rapid growth plans for its distribution chain are in the pipeline. Toyota expects to have 150 dealerships by the end of this year and deliveries for the Etios will start in January 2011. In addition to this, A.R.Rahman has been signed on as the brand ambassador for the Etios.

Competitors are wary of the effect of Toyota jumping onto the bandwagon and starting to manufacture cars at a lower price point. Toyota is known for its world class quality and also has the reputation of redefining the marketplace with its stringent cost and quality measures. The competitors for Toyota Etios would be Indigo Manza, Ford Figo, Hyundai i20 and the Swift Dzire which all lie at similar price points to the Etios. The Etios promises to offer more on the features and performance front but Toyota lacks in terms of the on ground support. Its competitors Maruti Suzuki, Tata Motors and Hyundai have a far more widespread presence and this will be an uphill climb for Toyota to achieve its ambitious goals for the Etios.

The Etios is almost like a make-or-break car for Toyota. The company believes that the Etios will carry forth Toyota through the 21^st Century, just as the Corolla carried them through the 20^th century. Such a statement, coming from the World’s largest automobile manufacturer shows how bold and significant this move is for Toyota. The start has been bright; Etios has already received over 8000 bookings in the first week after its launch was announced. The plans are to sell 70,000 cars in the first year. This seems to be an ambitious but nevertheless achievable figure with the amount of effort Toyota has put into the Etios. Toyota has stuck its neck out, only time will tell whether it was the right move and whether this will help spur Toyota’s forays into uncharted territories.

Kizashi – Maruti Suzuki’s foray into the Luxury car segment

Maruti Suzuki is the market leader in the A2 and A3 segments with a market share of 53.3% in A2 and 42.7% in A3 segment. It is currently exiting the A1 segment by phasing out its 800 model. It wants to become a company which is capable of satisfying the needs of customers across segments (Full market coverage, segment by segment invasion plan). The next logical step that could be taken to achieve this objective was to enter into the A4 segment. Although breaking into this segment may take time but with the high growth rates expected in this segment it is an opportunity that should not be wasted. The A4 segment is expected to grow annually at the rate of 30% per year for the next 5 years.

So, Maruti the name synonymous with “the best service and value for money” is planning to add another feather to its crown with its launch of Maruti Kizashi in 2011. Maruti Kizashi is a mid-size sporty looking sedan. Maruti has lots of cars in small car segment starting from Maruti 800, Maruti Alto, Maruti Wagon R, Maruti A-Star, Estilo and Maruti Ritz. But there was a vacant space for a luxury sedan in D-Segment which will be soon filled by stunningly beautiful and elegant car Kizashi. The issues which crops up is with respect to the brand Maruti Suzuki which is perceived as low cost and value for money. Moreover Maruti has to compete with D-segment giants and gain market share. Pricing and proper positioning of the car will be a challenge for the success of this new project. The promotional activities and defending the market share by MNC leaders in the segment are other major issues.

The competitor cars are priced between 10-15 lakhs with various models. However Kizashi is being launched as a sport model car (price range Rs 10-12 lakhs). Its UVP is its design and style. An advantage on power of 2000CC is also there (with compromise on mileage which does not affect this segment much). It has also more room compared to competitor products and Maruti has a better distribution system and aftersales service adding to its competitive edge.

In this segment both Maruti and Honda have decided not to go for a full on frontal attack. Their strategy has been such that they have emphasised that the Civic is youthful, while the Kizashi is mature. The Civic is sharp and designed to look quick and fast, while the Kizashi is rounded and has a majestic of bearing while on the move. The Civic breaks new ground when it comes to sedan design, while the Kizashi improves upon what already works. Kizashi can steal Civic’s market share in this market, by emphasising on these aspects.

Kizashi was earlier released in USA and Japan in 2009 but it was unable to make any significant impact in the US market and sales figures were not encouraging In India, Maruti Suzuki known for its low priced cars which have helped it establish a stronghold in the automobile market .The Kizashi is a sign of diversification and Maruti aims to be the market leader in this segment as well. The growth plans are sanguine and the result of Kizashi will decide Maruti Suzuki’s fate outside the small car segment.

Tata Aria – India’s first Crossover

Recklessness meets caution, contemporary meets the classic, the first Indian crossover TATA Aria hasn’t even hit the road and it has already created a buzz on various media channels. It is the company’s most expensive offering till date between Rs13 lakh and Rs16 lakh. Targeting the niche the Tata Motors has again not only developed a truly revolutionary product but also surprised people with the right and unique marketing campaign.

Although the issues in the launch of Aria are manifold like lack of awareness in the Indian market about crossovers, the brand itself and being first of its kind. But using the integrated marketing channel Tata has adopted a planned strategy to position Aria into the Indian market. Aria has been packed with lots of features which are supposedly to compete with those of the Innova and Xylo. Aria sports a 2.2 litre common rail diesel engine and blends the functionality and comfort of a mid-range MPV with the all-terrain assurance and premiumness of an SUV. In terms of features it has 6 air bags for safety as well as an Electronic stability program offered first time by an Indian manufacturer.

To overcome all issues related to Aria, Tata is driving the most ambitious marketing strategy. Tata starting with online campaign which will be followed by viral marketing will try to create curiosity in the customer about the crossovers and Aria in particular. Through a LIVE webcasting channel, thousands of automobile lovers across the world bore witness to the unveiling of a new breed in vehicles. Tata recently launched a website called the BuildDreamCar.com which allows users to create a user or connect via Facebook. Then a participant can create a car step by step in various levels, which is also kind of fun if you are into cars. Apart from their online presence with “LIVE” and Build a Dream Car” they have also showcased the prototype in Geneva Auto Expo and Delhi Auto Expo.

The planning for Aria started 5 years before the launch. They formed a focus group including owners of Sedan, SUVs and MUVs and gathered all their problems related to these existing products and after all that they tried to implement most of the features in Aria. A small example is of ground clearance for Indian women in saris. This speaks a lot about the positioning strategy of Tata.

The Tata Aria aims to create a new market segment for itself and hence has its task cut out. The aggressive promotion strategy is essential when aiming to create a buzz for the growth of a product such as the Aria. Tata has tried something like this before, with the Tata Xenon which was a lifestyle pickup truck and it failed to take off. This time Tata is treading more carefully to ensure that Aria captures the market share it deserves.

These cases show that the automobile companies in India are experimenting and experimenting big to find the right way to tap the growing opportunities. Companies are no longer satisfied with sticking to the beaten path; new paths are being treaded upon in the hopes of making tremendous progress. This bodes well for the consumer; he now has more choice and has better products awaiting him. As for the companies, it will be a while before their success or failure becomes clear. Some experiments will bring in the desired results, some will not, but one thing is sure the experiments will continue.

Captive Audience Networks

2011-01-12T15:24:00.003+05:30

Kumudini Manda & Krishnakant Jonnalagadda | NMIMS

Captive Audience Networks

Catching the ephemeral attention!!!

Rita was telling her friends in a kitty party about the new spa that has opened up in an area in Mumbai. She went on to the extent of telling them the packages available, the timings and other branches of the spa. Ask her how she came to know about the new spa, and out came the answer, ‘at my dentist’s office’.

Everybody in the room was bowled over by the answer and all the ladies surrounded Rita to know her story from which came the revelation of Rita spotting not only the new spa but also the offers in a supermarket close by and the investment options in the bank across the street. Rita was witness to the entire show on a single screen at the dentist while waiting her turn to see the dentist and get her root canal done. And thus the likes of Rita are increasingly becoming spectators to the concept of Captive Audience Networks (CAN).

The new ‘CAN’oe of modern marketing

It is one of the fastest picking up trends in the marketing arena. The real beauty of the medium lies in the gamut of players who can throw their hat in the arena. So, it shouldn’t be surprising if we see Costa Coffee letting people know its newest menu, HCL announcing new hires, Asian Heart Institute showing off its latest infrastructure or AXA insurance giving tips on investments one after the other. Seeing this great potential, no one is staying behind in exploiting the latest proposition to market themselves.

With the advent of cable, viewers were spread thinner across more stations and they would skip commercials altogether. Add on the burgeoning trend of outgoing population in urban areas. Thus, Television Advertising may not necessarily suffice. One of the reasons for this can be the fact that with tooth sweating competition in every sector, creating a strong “pull” strategy only via television is a difficult proposition. The trend of Out of Home digital media is a product of this vacuum. It facilitates a much stronger recall which helps to lead the customer to the Point of Purchase. The idea of “place-based” media networks is highly compelling to advertisers – because a network could deliver a captive audience such as at a doctor’s office or auto repair facility, mall, hotels etc.

Captive Audience Network, or more aptly the out of home media is catching up fast with marketers who find it a combination of two things that make it a great deal. One is the power of television, the other is the increasing need to be targeted in your communication spend.

Out of Home Media is increasingly being looked at as a premium medium which reaches out to the 'difficult-to-reach' and SEC A consumers wherever they are, thus offering the advertiser an all day primetime.

In fact, the service providers claim that what they provide is an opportunity for advertiser brands and intelligent consumers to come together in an environment where there is a common interest. It could include anything from product placement, sponsorship of editorial items and the chance for advertisers to provide an expert spokesperson to contribute to one of the editorial items.

CAN, as it is more often called, was found to enhance the image of participating retailers and the mall in consumers' minds and there was a general consensus that it created a sense of modernity. It has also brought the brand to life by creating a platform for not only advertising but also generating a need to educate. It has gone beyond the traditional boundaries of spot advertising and works with the agency and client to come up with innovative ways

The Current ‘CAN’vas

There are plenty of territories that are already being conquered, in railway stations and airports, gyms, cinemas, hospitals, hotels and conference centres. There are largely unexplored, markets in schools and universities, in libraries and museums, military bases, police stations, historic attractions and amusement parks and many more.

With a varied user base, where one size cannot fit all, there is scope for a much wider range of solutions and approaches. There is room for everyone from the vendor of tiny shelf-edge displays for the supermarket to the supplier of huge video walls at football grounds, from the producer of five-minute mini-documentaries to the designer of static digital posters. It is a highly cost effective medium to implement as the entire package of software, hardware installation and running costs are covered within a sum of the range 1.5-3 lakhs.

As mentioned above, the main appeal of a CAN is that it enables retailers to target shoppers close to the point of purchase, where the buying decision can be influenced. It also offers a potential additional revenue stream, with the mall's retail tenants providing a ready-made pool of potential advertisers. A newspaper or radio or TV, needs some sort of customer involvement. With CAN ads, all they have to do is walk in and they are involved.

The Rising ‘CAN’didates

The world of marketing has a pace and the slick style of change which can put even the Alfred Hitchcock books to extreme anxiety. Any new trend that germinates sees multiple gardeners watering the seeds to reap the best fruits. Captive Audience Networks’ potential is widely recognized and accepted. WalMart’s revenue figures of over a $100 million based on leveraging this medium is a strong enough indicator to show its potential. The Indian CAN market is still in its salad days. Few of the main players, who are ready with their forks, if not daggers, are:

Live Media:

One of the heavyweights of CAN in India is Live Media. With an expansive network covering over 300 Quick Service Restaurants, 300 BPO’s, 100 Corporate Offices, 200 Hospitals, 40 Rural Retail hubs, live media has certainly been able to hold its own. It has been able to rope in outlet locations in the form of esteemed clients like McDonalds, Dominos, DLF Diners, Convergys, Genpact, Fortis Healthworld, ITC Choupal, Hariyali etc. This wide spectrum of outlets gives them a huge footfall which in turn is a lucrative proposition to drive in more advertisers.

It claims to hold a special positioning because of its ability to undergo the installation process after extensive research so that the consumer psychographics and the location’s local flavour, both are amalgamated. This ensures that the issue of visibility is successful and simultaneously does not come across as the fifth wheel in the ambience of the outlet. This customised approach is one of their strong footholds over the competitors. With a range of around 13 in-house branded programs, Live Media intends to provide wholesome entertainment to the audience, apart from a platform of advertising. This, they believe, is necessary because the idea is to make the taxing phase of wait more pleasant and captivate the attention of the viewers for that period. The attention span varies from outlet to outlet as well. One can expect a more attentive viewer at a dentist’s waiting room than at a retail outlet. Thus, it is important to ensure that the programs are ably customized and not too elaborate in the manner of expression.

Ooh Media:

Another bellwether in this segment, Ooh Media, spans across a whopping 18 cities with more than 4500 screens and accessibility to over 70 million people in a month. They cater to

. (Photo courtesy: Ooh official website)

more than 300 clients belonging to sectors of Telecom, FMCG, Consumer Durables, Media & Entertainment, Travel & Tourism etc. They believe their USP lies in providing ‘flexicasting’, a tool they use to telecast the brand communication message varying according to the local flavour of the market. This interesting phenomenon of local market, gives them an edge over the competitors as local marketing is a strong order of the day and flexicasting is a brilliant medium to tap this aspect. The adjacent Wheel sums up their entire model lucidly.

Ooh media takes immense pride in the fact that their customer base has a non pareil appeal to it. Their customers are the opinion leaders, decision makers and wealth creators. Such customers have a major role to play in expanding the purview of Word of Mouth Publicity.

Apart from these two major players, there are other emerging players like Digital Signage Network, TAG Media, Laqshya Digital media, Nec India etc. whose foray into this segment has made the battleground extremely hot for the marketers.

‘CAN’ they or ‘CAN’t they??

So is this buzz about CAN for real or is it just another passé trend that would die down even before it can breathe in completely? When it comes to the CAN sector, expanding the user base can only be a good thing for the sector. It grows the market for screen-media products and services in terms of sheer size and also reduces the sector's vulnerability to changing fortunes, or business models, or marketing philosophies among its customers.

Statistics clearly indicate that this trend is here to stay. A nationwide survey conducted by Ooh Media in association with research firm Neilsen, revealed interesting results that the screens had a recall value of over 70% and 90% people recalled the ads they saw on those screens. A city like Mumbai enjoys a weekly traffic count of around 25 lakhs, which is a very strong number for any marketer to cater to. Thus, neglecting this rising segment would be like living in a fool’s paradise. There are a few challenges that this network offers which has to be taken into consideration-

The Return of the Silence Era

“Alam Ara” marks its recognition as the first talking movie of Hindi Cinema. The silence was finally broken and the celluloid burst out with dialogues and the power of sound. But the wheel seems to have taken a reverse turn and now we see ourselves standing on the same pavement again. Be it Tom & Jerry or blockbusters like Wall-E, silent media has always been an intriguing medium to explore. In the era of talking ads in Print media, we welcome you to the world of Silent Ads. CAN has recreated this new paradigm of advertising. So many times when we drop in at a coffee place or a pizza joint, we see the silent ads on this digital media, which goes down well because it is not intrusive at all, but still grabs eye balls because of the interesting graphics.

This smart ploy is a challenge for both the marketers as well as the creative intelligentsia of the advertising agencies. After all, every opportunity comes with an asterisk.

The ‘Yin-Yang’ leads to the Big Bang

With CAN, a marketer can find no limit to his creativity. One of the most ground breaking ways to arrest a customer’s attention was in using a woman's voice in the men's room and vice versa. There are many brands that prefer this medium of advertising in restrooms as with its getting noticed much more, it also helps you target on gender basis. It can also be applied in the in-house stores wherein the offers about men’s segment are displayed in the women’s section and vice versa. This leads to a better probability for the customer to hit the other end of the store, which might otherwise be conveniently ignored.

This innovative idea and tackling the challenges should ensure that the canvas of CAN has flying colours to boast of.

The ‘CAN’oe’s future

The future looks bright and sunny for this media to grow, subject to condition the medium stays flexible and fluid rather than succumbing to stagnation. It should not fall prey to complacency seeing the current trend reports. It needs to come up with innovative ways to make the product in sync with the changing times. Few possible ways of doing this can be

- They need to make the medium more interactive. With the growing trend of Wi-Fi availability in the outlets that CAN targets, a more interactive setup would attract more attention.

- Although it is primarily an Out of home phenomenon, a rational expansion would be to tap the DTH market. They should come across as a Value Added Service for a DTH provider. Their functionality would be a one stop junction for all local advertisements, event promotions etc.

- The Rural markets can provide great impetus to this service. The companies can use this medium to promote their BTL activities, setup kiosks with 24*7 telecast of the benefits of the service the companies offer rather than brazen selling.

It is important to keep this model fresh and rejuvenate it with the changing times. The reason is that it is a medium which is catering to the attention span of the people on the move. Thus, the execution has to be highly precise.

“The greatest enemy of a good plan is the dream of a perfect plan”, said Carl Von Clausewitz. Nothing can be closer to truth than this. It is important to understand that every new medium would meet resistance and would take time to gel with the status quo. At the end of the day, it is the people who drive the market. If you know your customers, you know that the cash sitting in the bank would have a visit from their relatives soon.

Generation Z-consumers of tomorrow

2011-01-12T15:18:00.002+05:30

Shekhar Gupta, parthdamor | sjmsom, iit Bombay

Generation Z – Consumers of Tomorrow

What is the first thing that would strike our mind as soon as we listen to the word ‘Marketing’ that has become the buzz of today’s business world? Philip Kotler? 4 P’s of Marketing? Brand? Or most probably ‘Consumer’? Have we ever tried to think beyond the existing or the apparent? Have we ever conceptualized our thinking to look into a world of marketing that is going to be in the near future? The world is changing very fast and this volatile nature of the market and consumer is leading the marketers to plan their branding strategies that would make the right fit into the world we are expected to be exposed to in the recent future. This idea of looking into the future marketing scenario needs to study the ones who are going to be the Consumers of Tomorrow – ‘Generation - Z’.

What is Generation – Z?

“They do ‘Nintendo’, they utter on ‘Twitter’ and the only “Face” they book is when they come visible on “Facebook” unless they find it obligatory to do so. Nevertheless, they do lots of e-read, e-mail, e-file, e-fax, cloud and surf. They may not have a wristwatch but they would have a smartphone to see the time.”

Generation – Z refers to the ‘people who are born between the mid 1990s and 2010’ and are popularly known as ‘Digital Natives’ or ‘Net Generation’ or ‘iGeneration’. We focus our attention towards the Generation Z. One of the main differences between Generation Y and Generation Z is that Gen Y’ers remember life before the proliferation of mass technology, while Gen Z’ers are born with full mass technology already in existence .This makes them both comfortable and dependent on technology such as communication tools, internet cell phones, MP3 players, I-pods undeniably. Generation Z are the forerunners of Generation Alpha, those to be born in the decade of 2010 and are very much in line with the digital future. Today, the Generation Z makes up for nearly 18 percent of the world’s population which is a large pool of consumers to be considered by marketers for the coming tomorrow.

What makes Generation – Z different?

Each Generation is characterised by different experiences that make & shape their perspective. Though the types of influences that shape each Generation are similar in many ways, the characteristics and qualities of the Generation Z are completely different from the others which can be analysed on the following points:

Online – Generation: The internet has experienced a phenomenal growth and development - in terms of penetration, technology, applications and adoption during Generation – Z. A research shows that 91% of this group is active online and have developed very different communication styles and preferences to their parents. Due to the huge influence digital technology has had in their short lives, these children have experienced radically different childhood experiences than other generations had. The figure below shows some developments that played a crucial role in shaping their perspective towards technology.

Advancement & Speed of Technology: Every Generation has seen the emergence of a ‘disruptive’ technology that rendered the then existing technologies irrelevant. Now, the time span between the emergences of new technologies has reduced and ‘innovation leaps’ are increasingly becoming smaller. The new technologies continue to emerge faster than ever leading to a stronger ‘connection’ between newer Generations.

Increasing overlap between Generations: The connections between the generations are becoming stronger which leads to the shorter span of technological innovations. The increasing overlap between the generations is mainly due to the ever-increasing pace of technological development and advancement in digital media and communication tools.

Relationship with parents: Generation Z experiences a tighter connection with their parents on a number of dimensions. Generation X is raising Generation Z with a high involvement parenting style. Some of the illustrations which show it are:

a. Common Technology: Generation Z has grown up with the technologies that their parents have always been using and feel very comfortable with such as mobile phones, laptops, video games, online networks, etc

b. Brand Experiences: Generation Z and their parents are developing an affinity for and purchasing the same brands.

c. Taste Commonality: They share their taste of recreation, entertainment, hanging around with their parents e.g. they watch the same entertainment channels that their parents watch. Many gaming companies are catering to family gaming segment.

d. Family Values & Ethics: Generation X saw a social trend of divorces and thus, is expected to instil stronger family values, along with old notions such as work ethics, etiquette and resilience. This, along with a better education, will help Generation Z become more tolerant, respectful, and responsible.

What makes Generation-Z lucrative to marketers?

Long gone are the days when marketers used to rely on a captive audience. The ownership of the communications is increasing getting shifted from the provider to the customers. Today’s teenagers do not respond to marketing in the same way as previous Generations. In the five years this Generation Z will be working, earning and consuming. Understanding the different behaviours, interests and preferences of this group can help marketers to craft their strategies. The following points present a complete and clear picture of the traits of the Generation – Z kids and the marketing implications which they provide to the marketers:

Web presence: Generation Z spends maximum of their time online and has a strong preference for the interactive media. And, social networks play an important role in making a strong influence on the consumer decision. According to a global survey of children, 50% of all tweens (8–12years) globally are online daily and 25% interact daily with peers in other countries. To effectively market to Generation Z, companies will need to have a strong presence online: Profiles on networking portals, Virtual world based marketing, detailed product information and the ability to easily make purchases.

Awareness & Education: Generation Z has a wide exposure to large and varied information sources and activities which is expected to make them smarter, flexible, and more responsible. Today’s kids are very knowledgeable and are able to understand and relate the various aspects of a problem because of the increased exposure and bend towards conceptualized learning and thinking. For instance, 75% of teenagers consider global warming to be ‘a serious concern’ and rate it even higher threatening than drugs, violence or war. A more informed and smarter Generation Z is expected to evaluate product in terms of their attributes, utility, brand name, trends etc. Companies will need to take a proactive stance toward the environment as they market to Generation Z and should look towards providing green products/ services.

Orientation towards technology: As an advantage of having been born in a digital world, Generation Z is proficient with and largely dependent upon technology. They are living in a real time environment which is the result of increase in comfort and dependence on electronic gadgets and this will lead them to make early purchases and increase demand for such products. Companies will need to adopt real time marketing techniques and turn towards sales channels such as text messages, mobile marketing, internet marketing, and online interactive media portals which offer gaming applications and video/music downloads.

Value Oriented: The privilege of being brought up by Generation – X has made Generation Z conservative financially, though they are materially comfortable. They are surrounded with the competitive markets full of variety and diversity and they look out for the products and services which provide the maximum value-for-money. Today’s marketers need to market their products cautiously. A guarded spending might reduce the credit card culture which is prevalent in Generation Y and could lead to decreased affinity for loans and other borrowing schemes.

The Road Ahead

Generation Z will be leading the world in a couple of decades from now. The generation of entitlement is going to continue to grow, so from a marketing perspective, it’s very important to be prepared to speak to youngsters in the right way as this generation is keen, mobile and digitally wired in toto. They prefer sending a text than talk. They tend to see social media as ‘the norm’ and ‘socializing’ is necessarily about hanging out with friends, shopping, (or sometimes even leaving chair for that). And that is why, they are able to incapacitate a brand, kill a campaign, and demolish the bottom line of a company by starting an insurrection quicker than we thought with the help of few status updates on Facebook or Twitter. This active group will be less interested in hybrid marketing – where an online presence merely improves an offline business.

Generation Z believe in the concept of self-branders. They’re not easily impressed with old marketing tactics because they realize that there is a new way that is more effective: viral marketing. This is most important prediction since it can affect widely. As advertisers look to find a way to explore media spaces, such as the 30 second spots, banner placements, etc., Generation Z will continue to find ways to access the information quickly. They tend to be impatient and expect instant results as information is available freely and fast. The Generation Z are not good listeners and lack interpersonal skills. So when it comes to work, in future they may barely be seen in an office communicating with their colleagues but might live their life in the virtual world.

Beyond 2025, there could be drastic changes in the work culture, ethics and values that will be set forth by the Generation Z. This doesn’t signify that traditional marketing will disappear, but there is a need to shift the paradigm to online media with the attributes and quick response characteristics that they demand. Marketers who are accustomed to traditional marketing models should start preparing for future marketing trends now.

The early adopters will enjoy the rewards of the new consumers when they come of age in next decade. Many companies have already started taking steps to target these young consumers. E.g. McDonald’s mobile marketing campaign to launch McFlurry or Nike’s Personalization service, NIKEiD, allowing customers to design their own shoes. Virtual world marketing (e.g. Avatar marketing) is a new tool what modern marketers are looking for.

The moral of the story is Marketers will need to be more convincing in creativity to engage the teens in something interactive because they don’t want just engagement, they want to go beyond conversations and they expect more from their brands than ever before. “über teen” is on the rise, and the time is now to implement the most agile, fickle and trickiest to engage generation.

‘You may not be web savvy, but within five years, your business will need to be as savvy as the kids are now’.

Here Comes Everyone - The wisdom of crowds

2011-01-12T15:12:00.002+05:30

Urvi Ved | IIM Indore

Here comes everyone – The wisdom of crowds

“Name our symbol, get closer to your dream” says the tagline of Airtel’s (or shall we say, Airtel’s recent brand experiment).In an attempt to emotionally connect their loyal customers with the rebranding exercise, Airtel has launched a contest where it invites users to submit their name for its new symbol.

The best entry will be chosen through online voting, and the winner gets his wish fulfilled by the company. Whether Airtel’s rebranding creates customer loyalty or destroys old bonds remains to be seen, but one thing that stood out in the rebranding exercise was the innovative use of brand sponsored crowdsourcing, perhaps for the first time in India on a large scale.

Crowdsourcing happens when a company outsources a task once performed by employees, to an undefined open crowd. The cocktail party definition of crowdsourcing is “The Wikipedia of everything!” Every brand manager tries to create communication that will actively engage the target audience. With the growth of Web 2.0, one way communication simply isn’t enough anymore. Brand sponsored crowdsourcing tries to make the communication reciprocal by giving its users a platform to share their ideas and meaningfully engage with the brand.

Many of the world’s leading international brands including Mastercard, Mcdonalds, Peugot, Virgin etc. have used crowdsourcing successfully in the past. The reasons for its popularity with brand managers are fairly obvious. With very little investment, you can get brilliant product design ideas, unlimited PR, visibility, and hits on your facebook page and website. The contests spreads online as internet users share their ideas with each other and the company. For example, say I’ve entered my idea for the logo name on the Airtel’s website. The next thing I do is share it through my facebook and twitter id. All my friends then view it on my wall, which encourages them to participate as well, and before you know it’s a viral hit. The last time I checked, Airtel had received 83,000 entries, and counting! Another example of a successful Indian crowdsourcing campaign is the Lays “Give us your own delicious flavor” campaign in which consumers gave ideas for lays flavors and proceeded to vote for the best among them. A total of 41, 64,886 votes were cast by consumers who had tried out four flavors among 1.3 million flavor ideas that were sent in.

Actively engaging, immersive, collaborative and open this is what crowdsourcing is all about. However, we also know what it isn’t – a brand engagement panacea. One of the best advertising firms in the world, Ogilvy and Mather believes that brands should tread carefully when outsourcing. Some aspects of brand identity like name, logo and culture should never be crowdsourced. The GAP logo fiasco is cited as a case in point. The company had changed its decade old navy blue and white logo without explanation, leading to massive criticism by its loyal customers on twitter and facebook. In reaction to that, as an attempt to pacify their users, GAP launched a contest inviting consumers to design their new logo, with even more disastrous consequences. In the end both these attempts failed miserable and GAP went back to its old logo with an apology. This example highlights the critical difference between using your consumers’ ideas, and letting them mess with the legacy of your brand.

Perhaps the answer to effective crowdsourcing may lie somewhere in the middle of professional expertise and public opinion. Some companies create versions of the output which they think reflect the characteristics of their product, and ask the people to choose between them. The producers of the movie Jab We Met decided the title of the film by a popular vote, where people were asked to choose between three titles –‘Jab we met’, 'Punjab Mail' and 'Ishq via Bhatinda'. They came up with the three alternatives, which reduced the effort needed to enter the contest, as a simple SMS was sufficient. All three names were catchy and contemporary (a mix of English and hindi words were used) which acted as a signal for the kind of movie Jab We Met was: A mix of traditional and modern, witty and young. This promotional crowdsourcing campaign created much needed buzz before the release of the movie.

Seeking feedback from customers, and asking them to co-create the product they love to use so much is the very soul of crowdsourcing – and this wasn’t invented yesterday! For decades companies have been asking people to write slogans, design stickers, send in stories to build brand loyalty. What is different this time around is that the power of social media has catapulted this trend into previously unimaginable level. The sheer number of people that can be touched by a crowdsourcing campaign and the consequent affect on the brand is mind boggling. This is the reason why crowdsourcing must be controlled to an extent where no damage to the brand is possible.

It is hard to tell if this is an on-trend campaign mechanic that might create some buzz while the idea is hot, or if brand managers will continue to view it as an invaluable tool for building brand relationships with their users. The success of every campaign after all depends not only on the vehicles used for communication, but also the dexterity with which they’re handled and the appropriateness for the occasion. Too many of such crowdsourcing activities might cause consumer fatigue and boredom, leading to fewer entries and zero buzz. However, we are a long way from that, and for the time being it looks like it’ll remain one of brand magic tricks the brand manager has in his bag.

Bollywood Marketing

2011-01-12T10:41:00.006+05:30

Amit Kaundinya | XIM B

BOLLYWOOD MARKETING

Introduction

One of the largest money churners in India is Bollywood: the business of making movies. Marketing for Bollywood once meant putting up Eastman Color posters across the streets of Mumbai, but since then it has evolved dramatically. Bollywood producers and filmmakers have realised that their movies are products that need to be branded, positioned and targeted at the right audience. The recent Salman Khan starrer, Dabangg that was made on a budget of 30 cr. had a marketing budget of 12 cr. That is a whopping 40% of the movie budget. The high marketing budgets are not just the norm for big budget films; Peepli Live a film made on a budget of Rs. 10 cr. had a marketing budget of Rs. 4 cr.
While Bollywood scripts have far from evolved, with the same stale movies being churned out day in and out, the way Bollywood is marketing its movies, would make Kotler proud!

The 5 P’s of Bollywood Marketing

• Product: The entire cinema experience is the product that you as a filmmaker are trying to sell. When a middle class worker spends Rs. 200 to watch a movie, he is paying more for the experience than for the movie itself. Bollywood marketers realise that marketing movies means selling the entire experience of watching a movie to its end consumers. Moviemakers need to understand which category their movie belongs to it and which audience it aims at targeting. Hence, the marketing strategy for a Dabangg and a Peepli Live would be poles apart. While Dabangg was targeted at the masses and single theatre screens, Peepli Live was targeted at the multiplex audience. Hence Dabangg’s promos reflected the masala experience that the masses will relate to while Peepli Live’s promos had sarcasm and black humor which would generate interest among the multiplex audience. UTV Motion Pictures Marketing VP, Shikha Roy says, “Most of the promos were shot separately and not as a part of the movie, to generate a kind of viral campaign and to have the people talking”.
Marketing is all about catering to the needs of the consumers and making profits by satisfying those needs. Who better to know this than filmmaker Mahesh Bhatt, most of the recent films made under his banner Vishesh Films revolve around recent controversies. Vishesh Films’s latest offering, Crook, is centred around the racial attacks on Indian students in Australia. Such subjects which the public relates to help gather enough interest and curiosity amongst them.
Bollywood makers are also giving a lot of thought to the naming of their products (movies). Like other products, movie names too should reflect the spirit, genre and feel of the movie. Gone are the days when a name like “Vijay” would sell, Innovative names are the order of the day. Dibankar Banerjee is one filmmaker who gives a lot of thought and importance to the naming of his films. His last offering “Love, Sex And Dhoka”, made on a shoestring budget of 2 cr. caught the eye balls of the youth just on the power of its unique name. The name of the movie was enough to generate curiosity in the minds of the public and attract them towards the movie screens.

• Placement: The timing of the launch of a product is a crucial factor in determining its success. Similarly, the release date of a movie is a significant factor in determining the success of the movie. Over the past few years, the biggest blockbusters released during the Diwali season or during the Christmas. What is the common link between Taare Zameen Par, Ghajini and Three Idiots? Apart from the fact that all these blockbusters star Aamir Khan, the movies have their release date as 25th December. Filmmakers nowadays invest a lot of thought in deciding the right time for releasing a movie. Even a good movie released during the exam season of students or if it is clashing with a major event such as IPL cricket extravaganza may get a dismal opening. Film makers also watch out if any big banner movies are being released during the same time as theirs and accordingly postpone or pre pone their release. Karan Johar, on his show Coffee with Karan once asked filmmaker Farah Khan what she would do if she realised that a Himesh Reshammiya movie was releasing at the same time as her’s. Farah replied with a smile, “I would postpone my movies release date”. That was the time when Himesh had the Midas touch.

• Promotion: No longer are promotions restricted to showing trailers and painting the city with posters of the movie. Bollywood movie promotions have come a long way. The small budget movies try to get referential power for their movies by participating in international film festivals. Winning awards in the international circuit helps in increasing the brand equity for the film, and the audience perceives that it will be a good product. Vikramaditya Motwane’s debut film Udaan created enough buzz and the multiplex crowd was waiting anxiously for the movie to release long before its promos started appearing. All thanks to the many awards and critical acclaim the movie managed to get in the international film circuit.
When it comes to marketing, Aamir Khan is one of the most innovative marketers out there. The way he promotes his movies is a lesson for all budding marketers. During the promotion of Ghajini, Aamir donned the role of a barber, giving Ghajini haircuts to his fans. For Three Idiots Aamir Khan went step further and came out with his own collection of hand drawn Doodle T Shirts, which reflected his own style and the soul of the movie. The T-shirts became a rage among the youth. In addition, the rickshaws in Mumbai were used as an effective way to market 3 Idiots. Aamir had painted stickers of “Capacity: 3 Idiots only” on the back of the rickshaws. The unique strategy created a lot of buzz for the movie at a very low cost.
Seeing the craze that youth of today have for playing games, Bollywood marketers have taken the route of combining movies and games to help promote their films. Yash Raj Films for their latest offering Lafangey Parindey has come out with two games: One a boxing game that reflects the spirit of Neil Nitin Mukesh and a skating game for Deepika Padukone fans. These games help movie fans to relate to the characters of the movie more closely.
Bollywood does not want to be myopic in its view, instead of looking at the television industry as a competition; they have taken it as a facilitator to promote their films. Reality TV shows are used by filmmakers to promote their movie. A few weeks before the release of a movie, you will have the stars of the movie making appearances as judges, hosts, participants on TV shows. John Abraham will be using the popular youth reality show MTV Roadies to promote his upcoming film, Jhootha Hi Sahi. Similar to the character he plays in the movie, John would lie to contestants but provide them with clues to help them win Roadies

• Personalisation: Today’s film makers realise that while marketing a film, they cannot follow a particular template for all films, but need to customise the marketing strategies for each, treating each film as a separate brand entity. So you had an Amitabh Bachchan poster telling you in theatres that, “Do not dirty the theatres or I will tell Paa” to “Switch of your mobiles or I will tell Paa” for the promotion of his film Paa where he played a 13 year old progeria patient. While for Anurag Kashyap’s Dev D you had customised tattoos being done at select parlors and condom shaped passes being distributed for the premiere of the movie. Ashutosh Gowariker’s movie What’s Your Rashee which had Priyanka Chopra play 12 different characters had 12 different flavours of popcorn being sold in movie theatres each corresponding to a different Rashee. The marketing team of Aladdin teamed up with Baskin Robbins to launch three delectable flavours on the characters of the movie: Ringmaster’s Whip, Princess Delite and Choco Aladdin. In another smart marketing move, ticket counter boys, ushers, and the popcorn boys sported the Ghajini haircut look during the release of Shah Rukh Khan’s Rab Ne Bana Di Jodi. Therefore, although cine-goers went to watch SRK’s flick the anxiety to watch Ghajini, which was releasing two weeks later, increased manifold.

• People: The filmmakers have now begun to use actors for promotion rather than just using trailers and posters. They want the stars to be closer to the people. So be it Salman riding a horse in the Mahalaxmi race course to promote his action film Veer or Abhishek Bacchan creating a Guinness record by travelling to 5 different cities in a span of 24 hours to promote Delhi 6, the people connect is clearly visible. Bollywood marketers realise that people will feel for the movie and relate to it only when they are able to relate to the stars of the movie. Aamir Khan to promote Three Idiots, went on a disguise marketing trip, in which he went to various parts of India, incognito and understood the people’s problems, aspirations and dreams. The entire campaign did not take long to become viral and created a lot of hype for 3 Idiots.
Actors have also taken to blogging and tweeting to promote their films and to break barriers that exist between them and their audience. From Shahrukh Khan to Genelia D’Souza, you can find them all present on the social media circuit trying to develop a connect with their audience.
Imtiaz Ali, director of the romantic comedy Jab We Met, who has done a course in advertising and marketing from St. Xaviers, believes in the idea of inclusive marketing. He believes that the opinion of the public is very important for a filmmaker, as they are the final consumers. So when he was confused on fixing a title for his Shahid-Kareena starrer, he held an all India poll, asking people to vote from amongst 3 titles (Ishq via Bhatinda, Jab We Met and Punjab Mail). Jab We Met got the most votes and was chosen as the title for the film.
YouTube is also being effectively as a medium to connect to movie buffs. Recently the critically acclaimed film, Udaan had the lead actor asking the public to share with him their college moments on Udaan’s Facebook fan page. Also, Udaan had a contest in which the audience was asked to share their first adult film experience with the Udaan team on YouTube.
Anjaana Anjaani has a promotional campaign on YouTube in which movie fans can directly ask questions to its stars Ranbir Kapoor and Priyanka Chopra and get them answered.

Conclusion
The aggressive marketing followed in Bollywood could well be due to the influx of companies like UTV Motion Pictures and Yash Raj Films that work in true corporate style in branding movies. In today’s time, a movie might be great but sans an aggressive marketing campaign, it would be very difficult to have it make an impact at the box office. I would like to end here by quoting a few lines that super star Amitabh Bachchan has written on his blog, “Good marketing has produced good results at the box office. That old belief that the merit of the film shall eventually emerge victorious has long since been overridden. By the time you wait for the merit to show its face, five other films have shown their merits.”

An Interview with Ms. BabitaBaruah, Vice-President & Client Services Director, JWT Delhi

2011-01-11T17:49:00.009+05:30

Ms. Baruah started her career in advertising at JWT Kolkata in 1996 and after 14 years of rich experience in the industry, she holds the same passion that she did as a starry eyed beginner. She was the VP and Business Head in JWT Mumbai office till July 2010, where she managed a challenging portfolio of finance, beauty, lifestyle and food. Currently she heads Unilever’s Sunsilk and Rin brand in South Asia and leads the Nokia business in JWT Delhi. She is the recipient of the prestigious Chevening Scholarship and believes that change is the only constant. She shares with us her views on current trends of advertising and her experience in the industry.

1. Please share with us one particular incident in your life which you feel proved to be a turning point in your life?
The Chevening Scholarship in 2004 for Women and Leadership in Management was such an incident in my life. This scholarship is provided by the British Council and is extremely competitive as it is open to all women professionals in India. I was one of the 12 shortlisted for this and it has been a big turning point for me.

2. Which campaign is the most memorable to you in your entire advertising career and why?
The Times of India Lead India work was definitely the most memorable one. It was not just advertising, it was a movement we created. It showed us that advertising still has the power to move millions, positively.

3. Rebranding is the flavour of the month. What is your take on it? How do companies ensure that a makeover turns out to be a success?
Rebranding has become very important in the world of digitalization and globalisation, which makes brands increasingly vulnerable by expanding the playing field at a global level. Brands need to remain contemporary in order to sustain themselves; they do not have the luxury of aging with time.
Companies need to be clear on the repositioning ideology or the end objective before embarking on a rebranding campaign. It is always a juggle between retaining the current values and elements that work and dropping those that don’t. Makeover success depends on consumer understanding and the ability to decide on a rebranding campaign that takes the brand to the next level.

4. What does a client look at when the initial pitch is made for a deal? How do you ensure that the deal is yours?
Clients look at strength of the strategy and the creative prowess. We ensure that we win by presenting our strategic take on the brief, our creative solution and most importantly, our credentials that have made us the leading agency consistently over decades.

5. When creating an ad, you may not always be comfortable working according to the client specifications. Many clashes are bound to come up. How do you strike the balance between the client side and your team, and ensure that it is the best ad that makes its way into the market?
(Smiles) This is the stress of the job. The pull and the push of client and the creative team is an everyday challenge. There is an eternal debate between what is “clutter breaking” and what “works for the brand”. Yes there are clashes every day. The art of a good servicing person is to make both sides see reason by focussing on what’s right for the brand overall.

6. ‘Advertising industry is the best training ground for India’s marketers’. What is your take on this statement?
I would put it as “one of the best” and not necessarily “the best”. Having said this, I would urge every brand manager to go through an extensive agency induction to understand the creative process. It is important to realise that we are about thinking and creativity and not about churning output to meet timelines.

7. What do you think is the future of the advertising industry with social media and online marketing gaining more impetus?
Agencies are gearing up for social media and the online media by developing their own specialized cells and units with experts from such fields. Every agency person should also be fully aware of the fact that this is the future and not just a small budget allocation as it is now, for some brands. We need to “think digital” and not just execute.

8. What would be your advice for a student who is looking at a career in advertising?
Be creative. Think out of the box. Get ready to work long hours and have a rollercoaster ride of working on creating conversations that make a product a brand.

Markathon December 2010

2011-01-11T01:23:00.008+05:30

Dear Readers,

Nira Radia and Raja must be the two most often heard names in the past two months. The telecom industry has been in the news for all the wrong reasons, what with the 2G scam grabbing eyeballs by the dozen. Among all this negativity there was one silver lining that caught the eye of the customers, Mobile Number Portability (MNP). Usually operators train their guns on the 'pre-paid' segment, which accounts for 95% of the 700 million mobile subscribers in India. A majority of this chunk are hardly interested in retaining their numbers and hence the telcos are not too worried about them. It’s the post-paid subscribers who are sending a chill

down the operator’s spine. With 3G coming in, they feel that would be the game-changer. And the with the aid of MNP, people wouldn’t think twice before switching over to those

operators who provide better 3G services.

So the next logical step for operators would be to advertise and attract customers over to their club by dangling the bait of MNP and 3G. And that’s exactly what Idea has done. They have come out with 3 simple but fantastic communications to drive home the usefulness of

MNP. Idea has chosen three major and foremost reasons why a customer gets frustrated with their service providers, namely bad network, poor customer services and faulty billing. When quizzed why they are meted out such a bad treatment, “no idea” is their response. AB is

quick to respond “Get Idea”. This is one of the best ads I have seen in recent times,

communicating the next big thing in town with a simple but powerful catch-line. I think Idea has played a masterstroke by being the first mover and trying to maximise the gains for what could be a potential gamechanger in an industry. Another industry that is going through a lot of changes and upheavals is the automobile industry. It’s said that approximately 50 cars are to be launched in India in 2011. So in this issues Cover Story we bring to you some of the most awaited launches including MarutiKizashi, Tata Aria and the Toyota Etios and also analyse why companies are exploring completely new uncharted territories.

In the Vartalaap section we have Ms. Babita Baruah, VP & Client Services Director, JWT Delhi. In this interesting conversation with her we get to learn the nuances of how the ad industry functions, how useful advertising could be as a training ground for marketers and also a peek into some of her memorable campaigns. Year 2010 has come to an end and we have stepped foot into a brand new decade. A decade where exciting brands would be launched, brands could rise to utopic heights, well established brands could hit new lows and much more.

I, on behalf of the entire team of Markathon, would like to wish all our beloved readers a happy and prosperous and colourful new year. We request for your continued support as we step into this decade so that we grow to become one of those brands which reaches utopic heights! 

Happy Reading!

Kaushik Subramanian

The Rebranding Dilemma

2010-12-07T12:46:00.007+05:30

Gaurav Ralhan, Kaustubh Rawool, Sria Majumdar, IIM S

The Rebranding Dilemma

‘’Whatever you do, be careful not to undermine the fundamental values and strengths of your brand and ensure that whatever you do is in sync with your business rationale and aims.” - Richard Duncan
While this may sound painfully obvious, there are enough examples of rebranding disasters to prove that common sense may indeed be, uncommon.
Books like ‘Who moved my Cheese?’ prove time and again that change is almost never well received. Brands, like people, are scared of change, of growing old and losing their market position. Products as well as corporate brands begin to panic when they have been in the maturity stage for too long. This is where rebranding comes to the rescue with glamorous creatives and brilliant strategies. One of the most common ways of delaying the ageing process, rebranding, includes changing the name, changing the logo, modification of the overall look and sometimes overhauling the entire brand philosophy.
Rebranding is the flavour of the season in the backdrop of Airtel’s rebranding campaign which was launched on the 18th of this month. As in Airtel’s case, rebranding may be spurred by sudden growth or the need to fit into a global identity. Rebranding is no child’s play, and as many disasters have shown us, must be dealt with very cautiously. Many a times, decisions have been reversed. A classic example of this is the failure of the new sweeter Coke that was introduced in the 1980s. Coca Cola finally had to bring back its original brand and formula. Although the risks are great, rebranding remains more popular than ever. The need to stay ahead makes companies gamble their heritage for the promise of better profits in the future. While it is too early to comment on the success or failure of Airtel’s rebranding strategy, in this issue we deal with some major rebranding successes and failures of the past.
The Tropicana Episode
A recent example of a rebranding exercise that fell flat was PepsiCo’s Tropicana juice brand. In early 2009, Pepsi relaunched Tropicana with new packaging and created a new advertisement to promote it. Tropicana’s whole packaging was overhauled and a rebranding campaign termed as the “Squeeze Campaign” was launched. The old design of an orange with a straw in it was replaced with a glass of orange juice. Also, the normal screw cap was replaced with a squeezable cap which had the appearance of half an orange.
As Tropicana’s case reinforces, relaunch of a trusted and well established brand can be tricky. The redesign was done to have a better connect with the customers and to present a clearer image of what the brand meant to customers. This is where the problem begins. Understanding consumer perceptions is no mean task.
When the new packaging was introduced, consumers were quick to register their displeasure. They did not like the new packaging and were quite vocal about it. It was all over the internet and PepsiCo was bombarded with emails, letters and phone calls of complaints. People went to the extent of commenting that the new packaging was too ‘generic’ and resembled a store brand. The packaging which made Tropicana stand out on the shelf was lost. In addition, there was criticism over the fact that the same glass of juice imagery was displayed on all of Tropicana juice varieties. The previous design had more obvious colour differentiation for each variety.
PepsiCo was forced to respond to the heavy criticism and reinstated the old packaging imagery, as a means of placating consumers and creating positive public relations. This case spotlights the importance of assessing the realities of the marketplace and recognizing what is important in rebranding a product. At the end of the day, nothing is more important than consumer insights.
Tropicana’s packaging story was interesting on many fronts. It was one of the most blogged topics in February 2009. The consumer’s reaction and the publicity it generated definitely had one positive for Brand Tropicana. It was proved beyond doubt that the consumers were attached to the brand, and Tropicana could not rebrand without the consumer’s approval.
Tommy Hilfiger’s Fiasco
Tommy Hilfiger’s logo has always been its key branding strength. Customers would associate the logo with the symbol of the US flag and could relate to it as US citizens. However in 1999, Tommy Hilfiger suggested that the logo be changed to give it a trendier feel. He believed that the customers wanted rebranding. There was an overhaul in the brand philosophy and the Tommy Hilfiger tried to become trendier and competed with chic brands such as Gucci and Prada. The company launched ‘Red Label’, a sub brand without the Tommy Hilfiger logo, which targeted the upper segment of the society.
Unfortunately, the strategy backfired as the average customer could not afford this range. Customers could not relate with this new range as it lacked the very logo responsible for Hilfiger’s success. The company’s share price fell from US $40 per share in 1999 to US $22.62 in 2000 which further reduced to half by the end of 2000. Sales reduced drastically and several showrooms were shut down. Also, location strategy of the company was flawed. Brand Hilfiger was associated with the youth and in locations such as Rodeo drive where stores were set up, the average age in the neighbourhood was about 50 years. Obviously, the response was poor.
The solution in this case too was no different from Tropicana. Tommy Hilfiger reverted back to its original classic and preppy feel which the customers could relate to. However, Tommy Hilfiger took a significant hit because of its rebranding campaign. The company lost a lot of customers and it cost Hilfiger a lot of time and resources to win the customers back. The lesson to be learnt from this case is that sometimes it is best to let things be as they like. Maybe that’s the way they are meant to be.
The Godrej Magic
By this point in the story, we are sure that most of the readers have become cynics. It seems like the most of the rebranding campaigns are nothing but a waste of resources in retrospect. However, the case of Godrej reinforces our faith in the concept and its success.
A 110 year old iconic brand went for a makeover. Godrej, the behemoth present in around 27 product categories with close to 100 products ranging from locks to homes, soaps to animal feeds to mission critical rocket engines got a new look. The famous Godrej logo which was actually founder Ardeshir Godrej’s signature was infused with animation and colours to give it a more contemporary look. Rather than completely changing the image of the brand—and thus alienating its loyal customer base built over time—Godrej decided to simply change the colour of its logo to the vibrant hues of green, blue and ruby.
The company’s old logo which represented the virtues of quality and trust were given a fresh contemporary look to reflect the new positioning of “Brighter Living”. Youngsters perceived the company as belonging to their grandparents’ generation- manufacturing locks and almirahs, but with the increase in the product portfolio the company needed to create a refreshed image. Hence this campaign was well placed to convey this message of change and renewed vitality.
The logo with the jazz and vibrant colours has worked wonders in establishing a better connect with the younger consumers and yet retain its loyal customer base. The new logo also helps to address the issue of Godrej being perceived as a company lacking innovation. The corporate rebranding strategy adequately portrays the new product development taking place in Godrej.
In situations similar to Godrej’s where firmly established brands become out dated, rebranding resembles identity makeovers. Godrej’s rebranding campaign is proof that we don’t have to lose out the old, in order to gain the new. For brands like Godrej heritage is important and it would be foolish to get rid of it, in order to stay relevant with the times.
With majority of the India’s population under 35 years of age, the company has timely recognized the need for generating a younger customer base for staying in the competition. If the brand represents an interface, through which the consumer interacts with the organization, then the logo is a useful touch point. However, the rebranding strategy should not be limited to the mere change of the logo; the change should be inculcated within the function of the whole organization. Godrej is strengthening its brand by leveraging its aerospace expertise through advertising to enhance the ‘advanced technology' perception among consumers. Through Godrej Eon in refrigerators, air conditioners, washing machines, DVD players, microwave ovens and colour televisions, Godrej is talking technology which will help it gaining market shares in various sectors where its new products are being launched. The company has proved it can understand consumer India well and cater to its needs by its successful rebranding campaign.
The CCD Story
Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) was a name unheard of till 1996 when the first Café Coffee Day outlet was inaugurated in Bangalore. Boasting of more than 1000 cafes in 141 cities, CCD, as it is called, is proof of the increasing purchasing power of today’s youth.
The company was initially perceived as a South Indian coffee joint where serious business discussions could be carried out. It was CCD’s belief that there was a latent market segment in teenagers which the company could target. Realising this fact, the company went for a complete brand overhaul in 2002. CCD’s earlier logo was quite simple with a simple red square having white streak and ‘Coffee day’ written at the bottom. The new logo incorporated red, white and green colours with emphasis on the word ‘Café’. The colour red signified passion while the colours green and white signified the long heritage of CCD and its purity. CCD had put an emphasis on the word ‘Café’. It was a place where one could go with a whole bunch of friends at any time of the day and have a good time, over coffee.
After a successful rebranding campaign, the company is currently in the midst of another rebranding propaganda. The new logo is a ‘Dialogue Box’, with the words Café Coffee Day written in a distinct, specially created font, which symbolizes the company’s motto of providing a perfect place for relaxation and conversation. 180 new retails outlets will be rolled out by 2015. Out of the 180 outlets, 65 would be new lounge format. Also other features such as new smart menu, take away dining, and comfortable dining would be part of the rebranding.
CCD has proved yet again that it understands the youth. The youth tend to get bored with similar decorations and ambience after a few visits. Keeping these useful insights in mind, a fresh rebranding campaign was launched. The earlier rebranding in 2002 proved to be very successful for the company considering the growth from 14 cafés in 6 cities to around 1000 cafes in 2010. While the full impact of the current rebranding is yet to be seen as implementation has not been completed, initial consumer reactions are very positive.
The Moral of the Story
Rebranding is a double edged sword. Used wisely, it could rejuvenate the brand and widen consumer base. However, there are too many rebranding mishaps in the history of marketing. Rebranding must be an absolute necessity; else it ends up diluting the brand equity. The importance of market research in a rebranding strategy cannot be overemphasized. At the end of the day, the customer is the king. When he accepts the rebrand and deems it necessary, it is a success, else a failure.

Horlicks- The Great Family Nourisher

2010-12-07T12:30:00.003+05:30

Winner: Prerna Sharma, KJSIMSR, MUMBAI

Honorary Mention: Varun Vasudevan, IIFT

Will Mahindra and Mahindra's foray in bikes segment lead to the dilution of its brand equity?

2010-12-07T12:24:00.003+05:30

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“Will Mahindra and Mahindra's foray in bikes segment lead to the dilution of its brand equity?”

The same question was raised when the company decided to invest heavily in its SUV/MUV manufacturing business. Mahindra & Mahindra was always more known for its farm equipment and tractors but with the advent of Mahindra in SUV/MUV, perceptions have changed. They lead this category with 55% market share with brands like Scorpio, Bolero & Xylo. This success has given enough confidence to the company that the consumers appreciate the products of Mahindra.
The company has acquired all the competence to enter this category and has a good control of the value chain. Talking about the brand equity, I don’t think that this move can dilute the brand equity because they have not only succeeded in the SUV/MUV category but have also been doing good in the scooterette category for last two years. Theoretically also, consumer imagery extends beyond the perceived price and the store image to the producers themselves. Manufacturers who enjoy a favorable image generally find that their new products are more readily acceptable. Mahindra & Mahindra has a very strong brand equity in rural India because of its success in farm equipment and SUV’s like Bolero which are extensively used in rural areas. Hence Mahindra already has an advantage in entering the rural markets.
M&M entered the two-wheeler segment by acquiring Firodias-promoted Kinetic Motors two years ago and currently sells three models of scooterettes. It has sold 1.5-million scooters in the 12 months. The company was not present in the bikes segment so far which has been witnessing good growth. Since the image of the parent brand is one of quality and bikes can be logically linked to the brand, consumers are more likely to have positive associations to the new offerings introduced.
Since all the synergies are favorable for Mahindra, I believe that their entry into the bike segment won’t affect the brand equity of the company.

Counter-view

Ragini Iyer, IIM S

Mahindra & Mahindra has forayed into the motorcycle segments with two of its products, the 110 cc Stallio and the 300cc Mojo. While Stallio in the entry level segment is being positioned as stylish and reliable, Mojo is all set to carry the tag of being the fastest bike. Being a new entrant in one of the most competitive markets, the onus is on Mahindra to prove its competency and not let its brand equity dilute. Unless the product is highly innovative, it is too risky to venture into a new market. The same seems to be happening in the case of Stallio and Mojo. Both the products are not really differentiated from the existing brands and do not possess any of the ‘extraordinary features’ required to crack the market share. It is also a well-known fact that 80% of the motorcycle market is captured by giants like Bajaj and Hero Honda and TVS.
Talking about the company’s brand equity, it has never been a very big name in the two-wheeler sector and it is trying to leverage the brand image of the parent group. The failure of these brand extensions is bound to jeopardize the overall brand image. Though it has been the largest tractor producer in the rural market, one should not forget the stronghold of Hero Honda in rural India. It already has almost 50% market share in the motorcycle segment, 40% of which is from sales in rural India. Every other motorcycle producer has been eyeing for its share of pie in the rural market. Also, the well-established brands have an edge over Mahindra to influence a potential customer’s purchase decision. Being a late entrant, the scenario would be even more competitive for Mahindra to boost up its top line.
Mahindra’s core competency in tractors and expertise in the utility vehicles have resulted from a continuous learning process over a period of time. The same may not be true for the new 2- wheeler vertical of the company which started just two years ago. Mahindra has seen failures in joint venture operations with Ford and Renault. Despite the synergies like market growth being robust, sales promotion being aggressive, one cannot be absolutely sure about the success of these newcomers. Another product failure may either project a negative or a new image, thereby diluting its brand equity.

Mr. Kiran Khalap, Brand consultant, author and co-founder of Chlorophyll

2010-12-07T12:19:00.002+05:30

An Interview with Mr. Kiran Khalap
Brand consultant, author and co-founder of Chlorophyll

In this month's Vartalaap , we have with us Mr Kiran Khalap, co-founder of Chlorophyll which is India's first end-to-end brand consultancy firm. Mr Kiran Khalap started off his career in Lintas as a trainee copywriter before moving on to Clarion advertising where he eventually became the company's first CEO and CCO (Chief Creative Officer). He has been the recipient of the prestigious Ashok Jain Award for Public Service advertising and also is a published author. In January 2010,Mr Khalap was chosen as the Chairman of the Brand & Marketing Advisory Council to the prestigious and challenging Nandan Nilekani-led Unique ID Project of the Government of India. He shares with us his unique perspective about the world of branding.

Q1. You juggle three passions and one career. Did these three diverse passions of yours play a role in motivating you to start out your own venture?
The venture started as a reaction to all that seemed not right (a very naive
view perhaps!). With advertising as a profession, where I had spent 16 years
of my working life (1983 to 1999), I needed a new way to utilise all that I had learnt-a way that was less self-obsessed, less ego-driven, more objectives-obsessed, more results-driven. That’s how we started chlorophyll, India’s first brand consultancy. There were design shops before chlorophyll, but no brand consultancy.

Q2. If you were asked to choose one defining moment of your life what would that be?
It was a very unusual setting. A local train running on the delta of steel
tracks in Mumbai. I was reading a book called Talks and Dialogues by J
Krishnamurti. I had read it twice before. But that day, in that dimly lit second class compartment, there was a white light inside my head: I saw how
our thoughts and memories create a division inside us and outside us, and
how one can discover an awareness that is untouched by our thoughts.
Nothing in life was the same after that.

Q3. ‘ideantity’ & ‘litmosi’ are two of chlorophyll’s newest and path breaking offerings. What was the thought process and reasoning that went into the creation of these two tools?
Good question! Thanks.
As the phrase goes, chlorophyll came from “the wrong side of the tracks”:
We were not set up by sexy, award-winning designers, but by a band of
holistic thinkers who were committed to an idea of what brands meant.
So we created chloropathy: a way of looking at brands (nouns) and branding
(verb) that we believed was uniquely ours. That is why on chlorophyll’s 10th birthday, we decided to go public with our beliefs and recorded our perspectives on the difference between the complexity of the design world and the simplicity of communication. For example, there is a lot of technical explanation about the use of colours in logos (Wipro is one of the most amazing in this regard), that taken out of context, makes no sense. ideantity attempts to clear the air using data rather than emotion. litmosi™ is the result of our consistent work with 50 corporate brands (asopposed to product or service brands) since 1999.
It is focussed on CEOs of SMEs who are
a.committed to growth
b.have realised that the organisation has grown beyond their ‘human
footprint’
c.need to substitute themselves with a set of values
We believe it’s the world’s first corporate brand alignment tool.

Q3. Branding is considered to be the most effective way for a company to differentiate itself from the crowded market place and off late the branding bug has caught on. Using terms such as brand or brand consulting seems to be the in thing and one gets the feeling it is being overused and misplaced at times. What’s your take on this?
I agree with you 100% that the word brand is being abused and misused.
Everybody from signboard printers and logo designers to advertising and
PR agencies offer branding. Closer investigation reveals that 99% of the
time they refer to some form of communication, whether a logo or a mass
media ad. Branding is about making hard sacrifices so that the business is aligned to an unchanging direction, not about spouting philosophy through clever brand lines or about creating a spiffy logo.

Q4. Brand voice - the written content used across all stages in the branding exercise is an important cog in the whole process of branding as such. For example it is said that McKinsey has an authoritative tone, Southwest Airlines’ is friendly, Virgin’s being tongue-in-cheek and so on. But these examples are few and far between. More often than not this important aspect is overlooked by major companies. Why do you think companies miss out on this aspect?
Even before brand voice (guided by brand personality) comes the definition
of who the brand is, what we refer to as the Brand Core, defined as an
unchanging idea. You can have a Mahatma Gandhi and Nelson Mandela with
the same unchanging core (belief in satyagraha) but with dramatically
different personalities.
Virgin’s cocking-a-snook is a personality trait, what drives the business is
the belief in contrariness: zig when the world of business zags.
Why do companies miss out on these aspects? Because they believe
business is only about tangible assets and EBITDA, while if you look at the
data in books like The Living Company by Arie de Geus, you quickly realise
that a company is a community of human beings held together by defined
values.

Q5. Rebranding efforts sometimes end up alienating the existing loyal customer base and confusing other stakeholders such as the employees, owners themselves, suppliers etc. What do you think is the reason for this and what could possibly be done to ensure such a thing does not happen?
The confusion in the heads and hearts of brand owners reflects in the heads
and hearts of stakeholders.
Vodafone is the only worldwide example I know of a service that has
changed brand names three times, Maxtouch to Orange to Hutch to
Vodafone, without losing customer loyalty.
This is an amazing example (you might say most of it is driven by lack of
number portability, but this argument does not work as well with other
brands) of a brand not changing despite its name changing.
Stakeholders need to experience what has changed and they should
understand why the brand has changed, only then will they not be confused
and stay with the brand.
When Bank of Baroda changed its logo, it changed its offerings by adding
new-age services. Did Union Bank do the same?

Q6. How important do you think is Brand valuation as a service going to be, considering the fact that IFRS will come into force in India in 2011 and brands’ value has to be shown on the companies’ balance sheet?
Yes, brand valuation as a service will be important.
But the one myth one must not be seduced by about brand valuation is
that it is a static number.
GAP lost $ 4357 million in brand value between 2008 and 2007 (20%) due to
child labour issues in India.
Pepsi lost brand value when the Surgeon General USA attributed junk food
as the chief contributor to obesity, and obesity closing in on as the No 1
killer (after smoking).
Nokia was punished for ignoring the clam-shell model.
A brand needs to remain vigilant and vibrant; its goodwill value in the
minds of the consumers and its value in the balance sheet can change
dramatically even due to unforeseen circumstances.

Q7. One of your many passions is spiritual evolution. If you were asked to give one piece of advice to today’s youth and more specifically to the B-school students based on your wide ranging experiences, what would that be?
I guess every individual follows a path of evolution dictated mainly by their
psychosomatic constitution. Some students will be driven by their heart,
some by their brains. Some will have a higher musical IQ, some verbal.
Therefore, one simple suggestion is ‘avoid comparisons’.
Secondly, while education attempts to reward those who give the right
answers in classrooms, in real life there is no one right answer. So look for
the second or third answer in every situation.
Lastly, accept that you have a larger responsibility as a human being,
beyond your role as student, brother, sister, teacher, manager-define that
responsibility and see if everything you do is aligned with that truth.

Building the Brand- Foodles

2010-12-07T12:14:00.003+05:30

Sunil Mishra, IIM S

FOODLES – BUILDING THE BRAND

Introduction

GlaxoSmithKline’s (GSK) newest product Foodles has hit the markets about a month back in the instant noodle category. GSK, which is world’s fourth largest pharmaceutical, research-based company with a wide portfolio^[1] of pharmaceutical products covering anti-infectives, central nervous system, respiratory, gastro-intestinal/metabolic, oncology, and vaccines products and is known in India for its healthcare products and nutritional drinks, the most popular being Horlicks. The company generates a good revenue from the nutritional drinks division in India (in the range of Rs. 1,500 crore^[2]) and now wishes to diversify its product range. But it remains to be seen if it can compete with Nestle’s Maggi, the most dominant product in the said category with an unbelievable market share of 91 % in an industry which is worth nearly Rs. 1200 crore and growing at 20 percent per annum [2].

History of the Instant Noodles Category

Maggi was launched by Nestle in 1984 and been the market leader ever since. Other major products which have come into this category over the past 25 years have been Top Ramen Smoodles and Cup Noodles manufactured by Indo-Nissin Ltd. Some other players in this market also include Capital Foods (Ching’s Secret and Smith & Jones), Future Group (Tasty Treat) and CG Foods (Wai Wai). But in all these years, no product has ever even come close to beating Maggi in its market share. All others that came into the market either suffered due to their product quality, marketing strategies or the brand loyalty of Maggi customers. Only Top Ramen’s Smoodles came close to competing with Maggi in the last 1990s with its varying flavours and curry noodles. Maggi during this time had also changed its taste which did not go well with its customers. But when Maggi switched back to its original Masala flavour again, Top Ramen was left far behind and had to be content with being second with a very small share in the market. But lately, the growth rate and the revenue being generated from the industry has attracted the attention of a lot of players and the giants of the consumer goods like HUL which previously have kept away from the category. With the launch of HUL’s Knorr noodles and GSK’s Foodles, we can hope for some competition in the market which may at the end of the day gain the maximum advantage to the consumers.

Foodles – The Brand

GSK launched Foodles under the name of Horlicks Foodles~~( 2 b chked)~~ with two variants of noodles. - Regular and Multi-grain. It was first launched in south India which currently is the stronghold of GSK through the Horlicks brand. It is to go national within a span of 6 months. The company aims to gain a higher single digit market share within a year or two and establish itself as a player in the salty confectionary foods division.

Foodles- What has been done

The problem with instant noodles has always been the fact that it is not very healthy. Keeping that in mind, Maggi few years ago came out with the tag of –“taste bhi , health bhi” which has helped it in maintaining sales. Foodles has taken this one step ahead and tried to create an USP out of the health factor associated with noodles. It has made TV advertisements which highlight the fact that even though it is an instant noodle, it is healthy and thus should be the consumer’s choice. Foodles also provides an "Health Maker" sachet which comes along with the noodles pack which contains the essentials of 5 vitamins^[3]. Foodles has tried to create a product category for itself by differentiating itself from instant noodles. Also, Foodles is currently trying to appeal to the upper middle class in the urban areas and placed the product at a premium price with Its multigrain variant costing Rs 15 for 80 gm compared to Maggi’s Rs 10 for 80 gm^[2]. Also, to use the distribution channel of Horlicks, initially single packs of Foodles were given for free. So far, the start of Foodles marketing strategy has been good, but is it enough to take on the leader of the market of 25 years? The past is not in favor of Foodles and it has also got to compete with brand like HUL along with Maggi. Let us examine what more strategies can they can adopt to appeal to the market.

Foodles- What next?

For one, the name Foodles is a bit confusing because Disney already has a product named Foodles , although Disney’s Foodles is available only via Disney’s outlets and thus problem of same names wouldn’t arise. Looking at the strategies Foodles has adopted and some of the more successful marketing campaigns of the same kind, some of the strategies Foodles may adopt are:

· PRESENCE IN THE WEB WORLD: Web publicity doesn’t take much of an investment and has been proven to give great ROI. Even for FMCGs, it has been proved that internet advertising has great paybacks [4] [5].The target segment of Foodles is Indian women and kids and latest market research have proved that increasing number no. of Indian women are becoming internet savvy and relying on it for their household decisions [6]. A website specifically for Foodles like one which exists for Amul products should also be designed. It can include information regarding its nutrient constituent for the mothers to read and some games for kids to enjoy. The games may be designed to relate it to the product in a way that makes kids want to buy the product may serve as a key marketing strategy as more and more kids are now- a- days spending time on the web.

· POSITIVE BRANDING: The current advertisement which is on air by Foodles shows that generally instant noodles are bad for health and Horlicks Foodles is an exception. This is an aggressive form of marketing and puts it in direct competition with Maggi. Rather than adopting this form of advertising, Foodles should concentrate on its own USP without attacking other brands. Currently it is new to the market and this form of marketing may put negative thought in the minds of the customers.

· MORNING SNACK: To further promote itself as an healthy snack, Foodles should elevate itself from the 4 o’clock food category and establish itself as a non lunch non dinner food. This can bring in Foodles as a breakfast option too and thus increase probability of people buying it.

· BRAND AMBASSADORS : To promote its brand as a healthy food even more, Foodles can bring in well known cooks of the country like Sanjeev Gupta or Tarla Dalal who are known for their health conscious food recipes and promote the brand through them in their media advertisements. Indian women connect greatly to these cooks and thus this can increase the brand’s value in their minds.

· FOOD RECIPES: Only promoting itself as an healthy food may not get Foodles the market shares it aspires for as other of products like Maggi have already switched to Atta Noodles to get into the healthy food category. Foodles has to come up with some innovative recipes (maybe an alternative way of cooking Foodles) with it to appeal to both kids and their mothers to buy the product.

· GIFT ITEMS: Though gift items aren’t a permanent market strategy, Foodles can give them out to attract kids so as to penetrate the market at the beginning even with its premium price. This strategy has worked wonders for McDonalds and Foodles can tie up with some firms like Hot wheels to initially provide some gift items.