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SEP-OCT ’11Vol. III Issue lI
our recharge partner
e have been fortunate to witness some
of the most brilliant works of genius Waround us. We have seen intellect
amalgamate with passion to bring to the world
some sparkling moments that would stay with the
world forever. In the past few days, it was
unfortunate to lose few of the pioneers who have
not only excelled but paved the path for future
generations to walk on. Steve Jobs, Mansoor Ali
Khan Pataudi, Jagjit Singh, Dennis Ritchie are
people who arrived on the minds of people, but
never left. Their ideas and their talent has outlived
their physical existence here. What is the stuff
legends are made of ? What is it that made few
people so important that the entire world mourns
for them? We've so many people who are really
good at what they do, then how come they dont
become legends?
Legends have a vision that not many around them
can share. They have a strong holistic perspective
which makes their learning about their area of
expertise unblemished. Their broad perspective is
exactly what Theodore Levitt emphasized in his
iconic work "Marketing Myopia". Thus, here at Buzz
we have tried to capture the same essence by
emphasizing on learning about the trendz that have
made people sit back and take notice, we have
tried to answer the eternal debate about Sales vs
marketing. The cover story captures the rise from
nowhere of the Angry Birds to take the world by
storm.
Neelotpal Shukla
Nishchai Nevrekar
Gaurav Modi
Rachita Behl
Kushal Mehta
Krisnakant Jonalgadda
Tushar Kumar
Nanadini Kapur
Pawas Soni
Naresh Chandak
Puneet Aggarwal
Neha Talwar
Team
2| Buzz - The Markazine SEP-OCT 2011 3| Buzz - The Markazine | SEP-OCT 2011
Ed Speak
The Eds
Kushal Mehta
Krisnakant Jonnalgadda
Designed by
Nishchai Nevrekar
We wish this concoction of articles and
more importantly ideas will keep you
engaged and enrich you. Happy Reading
and have a great festive season.
ContentsTrendz Sure Deodorants- Would Rexona's failure haunt? FMS, New Delhi
Cover Story Angry Birds
Premiere Wagh Bakri Tea r model? Welingkar Institute of Management
Gyan The Political Brand Icons: Charisma or just good PR? IIFT , New Delhi
Sales vs Marketing- The Fight and the Truce IIM Indore
FeaturePrint Ads Churn- Unleash the maze
Customer Loyalty Programs: Enough for Customer retention? IIM-Lucknow
Lounge: Can Tea emulate the coffee ba
e have been fortunate to witness some
of the most brilliant works of genius Waround us. We have seen intellect
amalgamate with passion to bring to the world
some sparkling moments that would stay with the
world forever. In the past few days, it was
unfortunate to lose few of the pioneers who have
not only excelled but paved the path for future
generations to walk on. Steve Jobs, Mansoor Ali
Khan Pataudi, Jagjit Singh, Dennis Ritchie are
people who arrived on the minds of people, but
never left. Their ideas and their talent has outlived
their physical existence here. What is the stuff
legends are made of ? What is it that made few
people so important that the entire world mourns
for them? We've so many people who are really
good at what they do, then how come they dont
become legends?
Legends have a vision that not many around them
can share. They have a strong holistic perspective
which makes their learning about their area of
expertise unblemished. Their broad perspective is
exactly what Theodore Levitt emphasized in his
iconic work "Marketing Myopia". Thus, here at Buzz
we have tried to capture the same essence by
emphasizing on learning about the trendz that have
made people sit back and take notice, we have
tried to answer the eternal debate about Sales vs
marketing. The cover story captures the rise from
nowhere of the Angry Birds to take the world by
storm.
Neelotpal Shukla
Nishchai Nevrekar
Gaurav Modi
Rachita Behl
Kushal Mehta
Krisnakant Jonalgadda
Tushar Kumar
Nanadini Kapur
Pawas Soni
Naresh Chandak
Puneet Aggarwal
Neha Talwar
Team
2| Buzz - The Markazine SEP-OCT 2011 3| Buzz - The Markazine | SEP-OCT 2011
Ed Speak
The Eds
Kushal Mehta
Krisnakant Jonnalgadda
Designed by
Nishchai Nevrekar
We wish this concoction of articles and
more importantly ideas will keep you
engaged and enrich you. Happy Reading
and have a great festive season.
ContentsTrendz Sure Deodorants- Would Rexona's failure haunt? FMS, New Delhi
Cover Story Angry Birds
Premiere Wagh Bakri Tea r model? Welingkar Institute of Management
Gyan The Political Brand Icons: Charisma or just good PR? IIFT , New Delhi
Sales vs Marketing- The Fight and the Truce IIM Indore
FeaturePrint Ads Churn- Unleash the maze
Customer Loyalty Programs: Enough for Customer retention? IIM-Lucknow
Lounge: Can Tea emulate the coffee ba
the one with bad odour.
Re- launch: Rexona showed unique product
benefit which was, 'Effective all day, unlike talc'.
This gave one the feeling of self-confidence
Present Scenario:
Failure of Rexona: After Rexona soap
was aligned with Hamam, another soap offered
by HUL, the tussle of the perception of Brand
Rexona between being a soap and a deodorant
Ishita Sharma Sure Deodorants: Would Rexona's failure
haunt?Pursuing a dual Major in finance
and marketing (MBA) at Faculty of
Management studies, Delhi.Ishita holds a B.Tech degree from
NIT Kurkukshetra. Eloquent,
Intelligent and Creative she enjoys
reading books, watching Television
and loves cooking.
Pursuing a Major in Marketing
(MBA) at Faculty of Management
studies, Delhi.Deepi holds a B.Tech degree from
NIT Allahabad and comes with a
p r i o r w o r k - e x a t W i p r o
Technologies.Hardworking,Determined and
Creative she enjoys reading books
and dancing.
Past Scenario:When HUL decided to foray into India,Rexona was not
the first deodorant in the market. Players like Copper
and Fa were present, who relied on the assumption
that the consumer differentiated between a
deodorant and a perfume. This is where HUL came in
and created a niche market for deodorants, which
kicked-off well and at the same time generated
awareness about the concept of a deodorant. Also,
they wanted the communication to be sober as it dealt
with the application of a product upon private parts in
a conservative Indian mindset. To tap this, they chose
a soap which was already popular in the country-
Rexona.
Promotion: Rexona was test launched in Tamil
Nadu in 1995 in the form of a push-up stick, since
aerosols were perceived to be expensive.
However, the offering was not seen as value-for-
money.
Indian Mindset: Although consumers were
aware of the concept of bad odour, they did not
perceive it as a problem. Hence HUL's sales did not go
up. So, it came up with new advertisements which
showed how bad-odour could make people lose social
acceptance. This resulted in the desired impact and
everybody suddenly became keen to not be 'that guy',
Rexona was test launched in Tamil Nadu in 1995 in the form of a push-up stick, since aerosols were perceived to be expensive.
affected its sales and it stooped down to 5%
market share, inspite of new product launches
of the anti-perspirant and the 24hr intensive
care variants.
Arrival of Sure: The overall deodorant
market has grown by about 40 per cent,
amounting to around 900 crores in the past
five years. It is further expected to grow at a
rate of 20-25 per cent. We now have different
deodorants to suit various profiles of men &
women. Men sweat more and so, need a
strong and effective deodorant. Also, they are
Deepi Garbyal
5| Buzz - The Markazine | SEP-OCT 20114| Buzz - The Markazine SEP-OCT 2011
Trendz
the one with bad odour.
Re- launch: Rexona showed unique product
benefit which was, 'Effective all day, unlike talc'.
This gave one the feeling of self-confidence
Present Scenario:
Failure of Rexona: After Rexona soap
was aligned with Hamam, another soap offered
by HUL, the tussle of the perception of Brand
Rexona between being a soap and a deodorant
Ishita Sharma Sure Deodorants: Would Rexona's failure
haunt?Pursuing a dual Major in finance
and marketing (MBA) at Faculty of
Management studies, Delhi.Ishita holds a B.Tech degree from
NIT Kurkukshetra. Eloquent,
Intelligent and Creative she enjoys
reading books, watching Television
and loves cooking.
Pursuing a Major in Marketing
(MBA) at Faculty of Management
studies, Delhi.Deepi holds a B.Tech degree from
NIT Allahabad and comes with a
p r i o r w o r k - e x a t W i p r o
Technologies.Hardworking,Determined and
Creative she enjoys reading books
and dancing.
Past Scenario:When HUL decided to foray into India,Rexona was not
the first deodorant in the market. Players like Copper
and Fa were present, who relied on the assumption
that the consumer differentiated between a
deodorant and a perfume. This is where HUL came in
and created a niche market for deodorants, which
kicked-off well and at the same time generated
awareness about the concept of a deodorant. Also,
they wanted the communication to be sober as it dealt
with the application of a product upon private parts in
a conservative Indian mindset. To tap this, they chose
a soap which was already popular in the country-
Rexona.
Promotion: Rexona was test launched in Tamil
Nadu in 1995 in the form of a push-up stick, since
aerosols were perceived to be expensive.
However, the offering was not seen as value-for-
money.
Indian Mindset: Although consumers were
aware of the concept of bad odour, they did not
perceive it as a problem. Hence HUL's sales did not go
up. So, it came up with new advertisements which
showed how bad-odour could make people lose social
acceptance. This resulted in the desired impact and
everybody suddenly became keen to not be 'that guy',
Rexona was test launched in Tamil Nadu in 1995 in the form of a push-up stick, since aerosols were perceived to be expensive.
affected its sales and it stooped down to 5%
market share, inspite of new product launches
of the anti-perspirant and the 24hr intensive
care variants.
Arrival of Sure: The overall deodorant
market has grown by about 40 per cent,
amounting to around 900 crores in the past
five years. It is further expected to grow at a
rate of 20-25 per cent. We now have different
deodorants to suit various profiles of men &
women. Men sweat more and so, need a
strong and effective deodorant. Also, they are
Deepi Garbyal
5| Buzz - The Markazine | SEP-OCT 20114| Buzz - The Markazine SEP-OCT 2011
Trendz
more often driven by pricing than by brand.
Ladies prefer a good fragrance and also tend to
choose a deodorant qhcih takes care of the
sensitive nature of skin.
HUL launched “Sure” in mid 2010, bringing the
anti-perspirant deodorant category to India. It
was intended to cater to the mass market
segment. Interestingly,
It won't Let You Down'
Sure carries the same logo - the 'Tick mark' and
the same tagline 'It won't Let You Down', of
Rexona.
Comparison and Conclusion:
The Sure-Rexona story isn't the first instance of
HUL trying to sell an old brand under a new brand's
name, the other example being 'Clinic Plus' and
'Clear.
'However, the difference in the Sure-Rexona and
Clinic Plus-Clear cases is the severity of baggage.
!While Rexona has been losing shares, the
brand Clinic Plus thrives as India's most
preferred shampoo. This gives Sure a better
chance than Clear to carve a niche for itself.
!The swoosh mark and 'Won't let you down'
tagline of Rexona may not possess so great a
threat so as to weigh down Sure but Clear
definitely banks heavily on Clinic.
The other differentiating factors that will help
Sure are:
Packaging: Apart from the 'Swoosh' sign,
Sure's packaging is different as compared to
Rexona's. Sure also claims to be the world's best
anti-perspirant, which gives it a more
international feel than the one Rexona
possessed.
·
Brand promotion: HUL has spent less on
the promotion of Rexona over the years. The last
noticeable campaign was the 'Who will you meet
next' with Preity Zinta, in February 2007. But with
Sure, it roped in Asin and Akshay Kumar (in a new
outdoor campaign in Delhi) as the brand
ambassadors. This move has added to the
promotional activity, thus helping Sure create its
own brand position.
·Rituals: Through educating the consumer
about the anti-perspirant category (such an
activity being absent in Rexona) HUL is now trying
to get associated with a brand ritual for an
effective brand recall.
International Brand: While Rexona
suffered from association with Rexona Soap,
which affected its image in the market, Sure
comes free from these bonds and can actually
capitalize on the fact that the brand
Sure/Rexona does very well in international
markets like UK and USA. One can learn the
same from the graphics given in the article.
It seems that Rexona, a dying phoenix, has risen
from the ashes. Only time will tell if Sure will rise
up to the challenge of a highly competitive
market. But for now,we can say that it has been
given a fair, fighting chance.
It seems that Rexona, a dying phoenix, has risen from the ashes. Only time will tell if Sure will rise up to the challenge of a highly competitive market. But for now,we can say that it has been given a fair, fighting chance.
7| Buzz - The Markazine | SEP-OCT 20116| Buzz - The Markazine SEP-OCT 2011
Trendz
more often driven by pricing than by brand.
Ladies prefer a good fragrance and also tend to
choose a deodorant qhcih takes care of the
sensitive nature of skin.
HUL launched “Sure” in mid 2010, bringing the
anti-perspirant deodorant category to India. It
was intended to cater to the mass market
segment. Interestingly,
It won't Let You Down'
Sure carries the same logo - the 'Tick mark' and
the same tagline 'It won't Let You Down', of
Rexona.
Comparison and Conclusion:
The Sure-Rexona story isn't the first instance of
HUL trying to sell an old brand under a new brand's
name, the other example being 'Clinic Plus' and
'Clear.
'However, the difference in the Sure-Rexona and
Clinic Plus-Clear cases is the severity of baggage.
!While Rexona has been losing shares, the
brand Clinic Plus thrives as India's most
preferred shampoo. This gives Sure a better
chance than Clear to carve a niche for itself.
!The swoosh mark and 'Won't let you down'
tagline of Rexona may not possess so great a
threat so as to weigh down Sure but Clear
definitely banks heavily on Clinic.
The other differentiating factors that will help
Sure are:
Packaging: Apart from the 'Swoosh' sign,
Sure's packaging is different as compared to
Rexona's. Sure also claims to be the world's best
anti-perspirant, which gives it a more
international feel than the one Rexona
possessed.
·
Brand promotion: HUL has spent less on
the promotion of Rexona over the years. The last
noticeable campaign was the 'Who will you meet
next' with Preity Zinta, in February 2007. But with
Sure, it roped in Asin and Akshay Kumar (in a new
outdoor campaign in Delhi) as the brand
ambassadors. This move has added to the
promotional activity, thus helping Sure create its
own brand position.
·Rituals: Through educating the consumer
about the anti-perspirant category (such an
activity being absent in Rexona) HUL is now trying
to get associated with a brand ritual for an
effective brand recall.
International Brand: While Rexona
suffered from association with Rexona Soap,
which affected its image in the market, Sure
comes free from these bonds and can actually
capitalize on the fact that the brand
Sure/Rexona does very well in international
markets like UK and USA. One can learn the
same from the graphics given in the article.
It seems that Rexona, a dying phoenix, has risen
from the ashes. Only time will tell if Sure will rise
up to the challenge of a highly competitive
market. But for now,we can say that it has been
given a fair, fighting chance.
It seems that Rexona, a dying phoenix, has risen from the ashes. Only time will tell if Sure will rise up to the challenge of a highly competitive market. But for now,we can say that it has been given a fair, fighting chance.
7| Buzz - The Markazine | SEP-OCT 20116| Buzz - The Markazine SEP-OCT 2011
Trendz
the' Mighty Eagle'. Today the game boasts of being
played over 200 million minutes per day and has
more than 350 million downloads till date!
Success strategy:
The firm believes in the following steps to success:
1) Create a great app
2) Get the message out
Marketing strategy:
Ever since the phenomenon of Angry Birds
appeared on the surface of the planet, all one could
wonder is how a seemingly
ordinary game earned a whopping
revenue of $ 1.2 billion!
The key, as from the
horse 's mouth, lies in their
marketi ng strategies.
The experts at Rovio were well aware of the fact that
it was 2009, a year which had just followed
recession. No matter how wonderful the game was,
it needed an audience. In other words, it had to
market itself to achieve the coveted title of 'Number
Angry Birds - Breaking new
barriersHow often does history repeat itself, with the help of a
slingshot, so as to shoot into success? Not very often, I
guess. But then history does get created when one
Finnish designer's feetless birds decide to take on
pigs! And that is what transforms into 'Angry Birds'.
Two phases can be carved out of the on-going Angry
Birds' fervour: Pre and Post-success. In other words -
What went into it and what came out of it?
Background:
Jaako Iisaalo, the brain behind Angry Birds' had
considered it to be just another day when his wife was
out and he sat at his desk, doodling rough sketches of
a different breeds of round birds. Rovio Mobile, his
employer firm, was short of funds, and the video game
designers were short of time and game proposals.
Launched in December 2009, the game turned out to
be fairly close to an overnight success. It was as if the
strange concept of pigs in the form of birds' enemies
instantly struck a chord with the users, who seemed to
get a chance to take out their wrath on the pigs due to
the then-on-going epidemic of swine flu. Initially
offered in a single version with three levels, Angry
Birds hardly took 11 months to upgrade itself. Since
then, it seemed to have never looked back. It recently
introduced another fascinating feature to the game –
One Game. Number One, longer than anyone
else'.
What was
launched
as a simple
game for iPhone and went on to enter a cascade
of events –
· Number one in Finland
· Number one in Sweden
· Number one in UK
· Number one in US
Soon, it caught the attention of smartphones,
who wanted to follow suit - that of earning huge
revenues. The application found entry first into
Android and then into Mac, and not to mention,
Apple's AppStore is the biggest market for Angry
Birds till date
Cover Story
9| Buzz - The Markazine | SEP-OCT 20118| Buzz - The Markazine SEP-OCT 2011
From NjM’s Cradle
Salil Pawar
Sudeep Singh
Aarti Khatwani
the' Mighty Eagle'. Today the game boasts of being
played over 200 million minutes per day and has
more than 350 million downloads till date!
Success strategy:
The firm believes in the following steps to success:
1) Create a great app
2) Get the message out
Marketing strategy:
Ever since the phenomenon of Angry Birds
appeared on the surface of the planet, all one could
wonder is how a seemingly
ordinary game earned a whopping
revenue of $ 1.2 billion!
The key, as from the
horse 's mouth, lies in their
marketi ng strategies.
The experts at Rovio were well aware of the fact that
it was 2009, a year which had just followed
recession. No matter how wonderful the game was,
it needed an audience. In other words, it had to
market itself to achieve the coveted title of 'Number
Angry Birds - Breaking new
barriersHow often does history repeat itself, with the help of a
slingshot, so as to shoot into success? Not very often, I
guess. But then history does get created when one
Finnish designer's feetless birds decide to take on
pigs! And that is what transforms into 'Angry Birds'.
Two phases can be carved out of the on-going Angry
Birds' fervour: Pre and Post-success. In other words -
What went into it and what came out of it?
Background:
Jaako Iisaalo, the brain behind Angry Birds' had
considered it to be just another day when his wife was
out and he sat at his desk, doodling rough sketches of
a different breeds of round birds. Rovio Mobile, his
employer firm, was short of funds, and the video game
designers were short of time and game proposals.
Launched in December 2009, the game turned out to
be fairly close to an overnight success. It was as if the
strange concept of pigs in the form of birds' enemies
instantly struck a chord with the users, who seemed to
get a chance to take out their wrath on the pigs due to
the then-on-going epidemic of swine flu. Initially
offered in a single version with three levels, Angry
Birds hardly took 11 months to upgrade itself. Since
then, it seemed to have never looked back. It recently
introduced another fascinating feature to the game –
One Game. Number One, longer than anyone
else'.
What was
launched
as a simple
game for iPhone and went on to enter a cascade
of events –
· Number one in Finland
· Number one in Sweden
· Number one in UK
· Number one in US
Soon, it caught the attention of smartphones,
who wanted to follow suit - that of earning huge
revenues. The application found entry first into
Android and then into Mac, and not to mention,
Apple's AppStore is the biggest market for Angry
Birds till date
Cover Story
9| Buzz - The Markazine | SEP-OCT 20118| Buzz - The Markazine SEP-OCT 2011
From NjM’s Cradle
Salil Pawar
Sudeep Singh
Aarti Khatwani
.
While the world was engrossed in the addictive
essence of Angry Birds, Rovio had already
planned what lay ahead. The release of the
'Angry Birds Plush' toys was their first move.
'Google Doodles' don't take the users by this big a
surprise, as did the tie up of Angry Birds and
Google Chrome! A red box fanned by a red, round
bird, invitingly asked people to download the
application. This was emulated by a tie up with
GetJar, which gave the firm a start of about 15
million downloads!
Social Networking being the need of the hour,
Rovio did not take too long to cash on Facebook
and Twitter, where its fan-following in thriving
today.Much has already been done and much
more is yet to come. There are reports about an
Angry Birds film in the process.
A tie-up with Starbucks has been officially
declared by Rovio, to slowly turn their virtual
world into the physical world of stuffed toys,
books etc. This will help tremendously in
increasing the game's popularity as well as
generate awareness in areas which are still to be
tapped.
And the ball doesn't stop rolling here. When
asked in an interview about their future plans,
Peter Verstabacka, CEO, Rovio, informed that
though Angry Birds has 100% brand recall in the
USA, the recall is as low as 30% in China, which is
a huge potential market. Hence the next big step
would be setting up Rovio's first overseas market
– that in China.
The latest in news is the marketing move by
Finnair to 'fly' on Angry Birds' popularity to create
awareness about its new air-route to Singapore.
The Debate:
Having said it all, there still exists scepticism as
far as the era of this game is concerned.
Not all feel that Angry Birds is like the dawn of
unending name and fame. Barring the fact that
this application has stolen endless productive
hours out of the world's economy, the game has
started facing a new flak-Boredom! Users are
complaining of the game turning into another
boring element.
Also there are complaints regarding discrepancies
in the game structure. The game seems to offer
myriad levels with a lack of hierarchical difficulty
levels, and an easy level sandwiched between
difficult and moderately difficult ones. This should
be a point of concern for the firm who claims to
beat the fame of Disney one day.
While the debate is still on over the pros and cons
of Angry Birds, let us be the silent spectator,
allowing time to reveal whether the stage has been
set to host the biggest trend ever or the soon-to-die
'soda pop fizz' effect.
Angry Birds now averages over 1 Million
downloads per day!
Over a MILLION Angry Birds plus toy sales
happen per month!
Over 1 MILLION Angry Birds t-shirts sold
every month!
Atlantic's Alexis Madrigal estimates that if 5% of all hours spent playing Angry Birds occurs while people are at work, that could translate to $1.5 billion in lost productivity. The assumption is based on statistics that say Angry Birds is played about 868 million hours per year, and a fairly arbitrary average wage for workers of $35 per hour.
Rovio, the company behind Angry Birds is now
valued at over $ 1 Billion.
Cover Story
12| Buzz - The Markazine |SEP-OCT 2011 13| Buzz - The Markazine | SEP-OCT 2011
.
While the world was engrossed in the addictive
essence of Angry Birds, Rovio had already
planned what lay ahead. The release of the
'Angry Birds Plush' toys was their first move.
'Google Doodles' don't take the users by this big a
surprise, as did the tie up of Angry Birds and
Google Chrome! A red box fanned by a red, round
bird, invitingly asked people to download the
application. This was emulated by a tie up with
GetJar, which gave the firm a start of about 15
million downloads!
Social Networking being the need of the hour,
Rovio did not take too long to cash on Facebook
and Twitter, where its fan-following in thriving
today.Much has already been done and much
more is yet to come. There are reports about an
Angry Birds film in the process.
A tie-up with Starbucks has been officially
declared by Rovio, to slowly turn their virtual
world into the physical world of stuffed toys,
books etc. This will help tremendously in
increasing the game's popularity as well as
generate awareness in areas which are still to be
tapped.
And the ball doesn't stop rolling here. When
asked in an interview about their future plans,
Peter Verstabacka, CEO, Rovio, informed that
though Angry Birds has 100% brand recall in the
USA, the recall is as low as 30% in China, which is
a huge potential market. Hence the next big step
would be setting up Rovio's first overseas market
– that in China.
The latest in news is the marketing move by
Finnair to 'fly' on Angry Birds' popularity to create
awareness about its new air-route to Singapore.
The Debate:
Having said it all, there still exists scepticism as
far as the era of this game is concerned.
Not all feel that Angry Birds is like the dawn of
unending name and fame. Barring the fact that
this application has stolen endless productive
hours out of the world's economy, the game has
started facing a new flak-Boredom! Users are
complaining of the game turning into another
boring element.
Also there are complaints regarding discrepancies
in the game structure. The game seems to offer
myriad levels with a lack of hierarchical difficulty
levels, and an easy level sandwiched between
difficult and moderately difficult ones. This should
be a point of concern for the firm who claims to
beat the fame of Disney one day.
While the debate is still on over the pros and cons
of Angry Birds, let us be the silent spectator,
allowing time to reveal whether the stage has been
set to host the biggest trend ever or the soon-to-die
'soda pop fizz' effect.
Angry Birds now averages over 1 Million
downloads per day!
Over a MILLION Angry Birds plus toy sales
happen per month!
Over 1 MILLION Angry Birds t-shirts sold
every month!
Atlantic's Alexis Madrigal estimates that if 5% of all hours spent playing Angry Birds occurs while people are at work, that could translate to $1.5 billion in lost productivity. The assumption is based on statistics that say Angry Birds is played about 868 million hours per year, and a fairly arbitrary average wage for workers of $35 per hour.
Rovio, the company behind Angry Birds is now
valued at over $ 1 Billion.
Cover Story
12| Buzz - The Markazine |SEP-OCT 2011 13| Buzz - The Markazine | SEP-OCT 2011
“In all things of nature, there is something
marvellous” – Aristotle
Tea and coffee are two such things from nature,
both marvellous in their own way but there is
always a ' Tea V/s Coffee', and people expect a
clear winner to emerge amongst them.
Once again the battle lines have been drawn, but
this time in the arena of Business, holding the tag
of a challenger is Gujarat Tea Processors and
Packers Ltd (GTPPL) (Tea) trying to usurp the
‘Champions’ - The Baristas, The Cafe Coffee
Days, The Costa Coffees, etc. to name a few
(Coffee).
GTPPL popularly known through its Wagh Bakri
(Exhibit 1) Tea brand, had forayed in to the retail
category with its Wagh Bakri Tea Lounge in
Mumbai in 2008. It was a first of its kind concept,
where the consumer got to taste their tea leaves
before purchasing, in a five-star ambience.
Putting it in the words of the Chairman of the
group,
“We are confident that their extensive
experience will be of great value to us. This
is the first tea lounge in Mumbai city and we
plan to roll out a number of outlets in other
parts of the country. I am confident that the
launch of this new format will mark a
significant development in the evolution of
the Wagh Bakri brand" – Piyush Desai,
Group Chairman 2008 Press Release
Fast forwarding to 2011, something has
terribly gone wrong. It has been four years and
the company hasn't opened up any other Tea
lounge apart from the one situated in Mumbai
(Vile Parle).
What went wrong? You may ask, if statistics
are to go by, then Demand for Tea in the
coming years will be on an uptrend (Indian
Stats) (Exhibit 2) Tea consumption in India is
miles ahead when compared to that of coffee.
Irrespective of having conducive factors, the
Tea Lounge model doesn't seem to have
taken off.
Although the company pioneered something
new in this overly saturated Café / Coffee bar
market, it seems to be going ahead on the
path to PARC syndrome (Exhibit 3). What the
company is oblivious of, is the fact that it is
sitting on a potential gold mine!
Let's look at how we can approach the Tea bar
Prabhdeep Seth
is currently pursuing his MBA from
Welingkar Institute of Managment,
Bengaluru. He has done his
graduation in the field of business
management. He has worked at
Citigroup Inc, has been living in Vile
Parle, Mumbai and was fascinated by
the concept of a Tea lounge which
prompted him to write about it.
Authors
“The Wagh Bakri Tea Lounge
”
was a first of its kind concept, where the consumer got to taste their tea leaves before purchasing, in a five-star ambience.
Wagh Bakri Tea Lounge
A Novel Concept
Can Tea emulate the coffee bar model?
Premiere
12| Buzz - The Markazine |SEP-OCT 2011 13| Buzz - The Markazine | SEP-OCT 2011
Shalin Kumar
is currently pursuing his MBA from
Welingkar Institute of Management,
He has graduated in business
management, from Symbiosis
Center for Management Studies. He
has worked at JP Morgan Chase and
plans to specialize in Finance.
“In all things of nature, there is something
marvellous” – Aristotle
Tea and coffee are two such things from nature,
both marvellous in their own way but there is
always a ' Tea V/s Coffee', and people expect a
clear winner to emerge amongst them.
Once again the battle lines have been drawn, but
this time in the arena of Business, holding the tag
of a challenger is Gujarat Tea Processors and
Packers Ltd (GTPPL) (Tea) trying to usurp the
‘Champions’ - The Baristas, The Cafe Coffee
Days, The Costa Coffees, etc. to name a few
(Coffee).
GTPPL popularly known through its Wagh Bakri
(Exhibit 1) Tea brand, had forayed in to the retail
category with its Wagh Bakri Tea Lounge in
Mumbai in 2008. It was a first of its kind concept,
where the consumer got to taste their tea leaves
before purchasing, in a five-star ambience.
Putting it in the words of the Chairman of the
group,
“We are confident that their extensive
experience will be of great value to us. This
is the first tea lounge in Mumbai city and we
plan to roll out a number of outlets in other
parts of the country. I am confident that the
launch of this new format will mark a
significant development in the evolution of
the Wagh Bakri brand" – Piyush Desai,
Group Chairman 2008 Press Release
Fast forwarding to 2011, something has
terribly gone wrong. It has been four years and
the company hasn't opened up any other Tea
lounge apart from the one situated in Mumbai
(Vile Parle).
What went wrong? You may ask, if statistics
are to go by, then Demand for Tea in the
coming years will be on an uptrend (Indian
Stats) (Exhibit 2) Tea consumption in India is
miles ahead when compared to that of coffee.
Irrespective of having conducive factors, the
Tea Lounge model doesn't seem to have
taken off.
Although the company pioneered something
new in this overly saturated Café / Coffee bar
market, it seems to be going ahead on the
path to PARC syndrome (Exhibit 3). What the
company is oblivious of, is the fact that it is
sitting on a potential gold mine!
Let's look at how we can approach the Tea bar
Prabhdeep Seth
is currently pursuing his MBA from
Welingkar Institute of Managment,
Bengaluru. He has done his
graduation in the field of business
management. He has worked at
Citigroup Inc, has been living in Vile
Parle, Mumbai and was fascinated by
the concept of a Tea lounge which
prompted him to write about it.
Authors
“The Wagh Bakri Tea Lounge
”
was a first of its kind concept, where the consumer got to taste their tea leaves before purchasing, in a five-star ambience.
Wagh Bakri Tea Lounge
A Novel Concept
Can Tea emulate the coffee bar model?
Premiere
12| Buzz - The Markazine |SEP-OCT 2011 13| Buzz - The Markazine | SEP-OCT 2011
Shalin Kumar
is currently pursuing his MBA from
Welingkar Institute of Management,
He has graduated in business
management, from Symbiosis
Center for Management Studies. He
has worked at JP Morgan Chase and
plans to specialize in Finance.
model to make it a success.
Firstly looking at something simplistic, like
the processing of tea leaves, the same
cannot be replicated in a Tea Bar model
vis–a-vis a Cafe model, where one enjoys
a sensory appeal of smell and sight
(process of coffee beans being crushed
and fresh coffee being made). Tea cannot
brand itself on the freshness factor
although it has a refreshing element
associated with it.
Secondly, Tea drinking has been a practice
that most of the households in India follow,
so drinking tea becomes a casual activity
around which one has failed to create an
occasion.
Apart from home, the real challenge faced
by this business model is from a simple
Chaiwala (Tapri) outside most offices /
colleges that impedes people from scaling
up on their options. Again the casualness
attached to tea gets highlighted.
So in order to break through these barriers, we
feel that the Tea Bar should be positioned in the
following way “Chai and Rejevunation” OR
“Re-Chai yourself”.
Tea drinking needs to be pushed as a healthy
beverage (Exhibit 4) to the people between the
age group of 25 to 35, the working class that
today is more health conscious. Not just that,
the Tea bar needs to build itself as a leisure
destination, a place where one can be his or
her own self. In this fast paced world of
technology, where face to face communication
has been replaced with Facebook, Tea bar can
position itself as a bridge that rekindles
togetherness and face to face communication.
As a product the company has the best
product in the market, with 32 variations of tea
being offered, a single store disadvantage can
be used as an opportunity to build exclusivity
around the brand. The next step to be taken is
to work on the aesthetics of the store, “People
do not eat with their mouths but with their
eyes” is a mantra that needs to be kept in
mind. A periphery of other services can be
created around Tea cafe, like trivia nights,
musical entertainment, book clubs (informal)
can be engaged, wi-fi facilities etc.
The question to be asked at the moment is not
about the success or the failure of the model,
but about the willingness to nurture a new
market. The Indian consumer was thought to
have a discerning palette, a myth that was
shattered with the advent of the coffee bar
model. Tea has an opportunity to be a White
Knight for its consumers, and give them a
chance to acquire taste towards its richness, a
commodity for which wars have been fought
and colonies being created. The road has just
started!
14| Buzz - The Markazine | SEP-OCT 2011 15| Buzz - The Markazine | SEP-OCT 2011
“
”
In this fast paced world of technology, where face to face communication has been replaced with Facebook, Tea bar can position itself as a bridge that rekindles togetherness and face to face communication.
Premiere
model to make it a success.
Firstly looking at something simplistic, like
the processing of tea leaves, the same
cannot be replicated in a Tea Bar model
vis–a-vis a Cafe model, where one enjoys
a sensory appeal of smell and sight
(process of coffee beans being crushed
and fresh coffee being made). Tea cannot
brand itself on the freshness factor
although it has a refreshing element
associated with it.
Secondly, Tea drinking has been a practice
that most of the households in India follow,
so drinking tea becomes a casual activity
around which one has failed to create an
occasion.
Apart from home, the real challenge faced
by this business model is from a simple
Chaiwala (Tapri) outside most offices /
colleges that impedes people from scaling
up on their options. Again the casualness
attached to tea gets highlighted.
So in order to break through these barriers, we
feel that the Tea Bar should be positioned in the
following way “Chai and Rejevunation” OR
“Re-Chai yourself”.
Tea drinking needs to be pushed as a healthy
beverage (Exhibit 4) to the people between the
age group of 25 to 35, the working class that
today is more health conscious. Not just that,
the Tea bar needs to build itself as a leisure
destination, a place where one can be his or
her own self. In this fast paced world of
technology, where face to face communication
has been replaced with Facebook, Tea bar can
position itself as a bridge that rekindles
togetherness and face to face communication.
As a product the company has the best
product in the market, with 32 variations of tea
being offered, a single store disadvantage can
be used as an opportunity to build exclusivity
around the brand. The next step to be taken is
to work on the aesthetics of the store, “People
do not eat with their mouths but with their
eyes” is a mantra that needs to be kept in
mind. A periphery of other services can be
created around Tea cafe, like trivia nights,
musical entertainment, book clubs (informal)
can be engaged, wi-fi facilities etc.
The question to be asked at the moment is not
about the success or the failure of the model,
but about the willingness to nurture a new
market. The Indian consumer was thought to
have a discerning palette, a myth that was
shattered with the advent of the coffee bar
model. Tea has an opportunity to be a White
Knight for its consumers, and give them a
chance to acquire taste towards its richness, a
commodity for which wars have been fought
and colonies being created. The road has just
started!
14| Buzz - The Markazine | SEP-OCT 2011 15| Buzz - The Markazine | SEP-OCT 2011
“
”
In this fast paced world of technology, where face to face communication has been replaced with Facebook, Tea bar can position itself as a bridge that rekindles togetherness and face to face communication.
Premiere
coverage of the election campaigns in various
countries, one cannot resist the impression
that this might be more of a war of brands than
a political contest. Journalists' and bloggers'
language is so riddled with terms from
marketing and brand management, that one
could as well be reading an Economic Times
piece about the competition between Pepsi and
Coke or an Economist review of the differences
between flying British Airways and Virgin
Atlantic!
The Rise of the Political Brand
Be it the famous “Change” campaign of
Democratic President Barack Obama or
strategy to reconnect the former Prime Minister
of UK, Tony Blair with disaffected voters,
commercial frameworks have become
immensely successful. Blair sought the
services of Promise plc, a commercial
consultancy specializing in brand building.
Promise converted the 'old and patronizing
Tony' to 'fresh, mature and approachable Tony';
Dr Yashaswi Barapatre
The Political Brand Icons:
Plain Charisma or just good PR?
Currently, an MBA student at Indian Institute of Foreign Trade (IIFT), New Delhi,
I have done my MBBS from Maulana Azad Medical College (Delhi University).
An avid quizzer, I am also interested in writing poetry and learning foreign languages.
“A politician will do anything to keep his job - even
become an actor.”
This quote by William Randolph clearly tells us how
much politics has evolved over the years. Political
communication too, has changed, from ideological
preaching to lifestyle branding. In the traditional days,
political communication was structured along a small
number of grand themes. In today's modern world,
politicians cannot rely upon the old forms of pomp
and ceremony to justify what they do. Instead
politicians, like actors have come to rely on political
marketing techniques, on forms of communication
based on persuasion in which voters, lacking
enduring political convictions, are motivated to select
a particular candidate or party at election time.
Being charismatic is a part of the politician's job.
However, to exude just the right amount of charisma
at the right time is extremely crucial. Following the
“ A politician will do anything to keep his job - even become an actor.”
thereby branding Labour Party as the 'New
Labour'.
Similarly, David Muir, a former adman and co
author of 'Business of Brands' is considered to
be the man behind Gordon Brown's PR
campaign. Back home, in 2009, L.K.Advani,
the BJP stalwart went the Obama way. He
started his rebranding campaign with the
statement, 'Man of Eighties, Vision of
Twenties'. He was projected as an ordinary
Indian
17| Buzz - The Markazine | SEP-OCT 201116| Buzz - The Markazine SEP-OCT 2011
Gyan
coverage of the election campaigns in various
countries, one cannot resist the impression
that this might be more of a war of brands than
a political contest. Journalists' and bloggers'
language is so riddled with terms from
marketing and brand management, that one
could as well be reading an Economic Times
piece about the competition between Pepsi and
Coke or an Economist review of the differences
between flying British Airways and Virgin
Atlantic!
The Rise of the Political Brand
Be it the famous “Change” campaign of
Democratic President Barack Obama or
strategy to reconnect the former Prime Minister
of UK, Tony Blair with disaffected voters,
commercial frameworks have become
immensely successful. Blair sought the
services of Promise plc, a commercial
consultancy specializing in brand building.
Promise converted the 'old and patronizing
Tony' to 'fresh, mature and approachable Tony';
Dr Yashaswi Barapatre
The Political Brand Icons:
Plain Charisma or just good PR?
Currently, an MBA student at Indian Institute of Foreign Trade (IIFT), New Delhi,
I have done my MBBS from Maulana Azad Medical College (Delhi University).
An avid quizzer, I am also interested in writing poetry and learning foreign languages.
“A politician will do anything to keep his job - even
become an actor.”
This quote by William Randolph clearly tells us how
much politics has evolved over the years. Political
communication too, has changed, from ideological
preaching to lifestyle branding. In the traditional days,
political communication was structured along a small
number of grand themes. In today's modern world,
politicians cannot rely upon the old forms of pomp
and ceremony to justify what they do. Instead
politicians, like actors have come to rely on political
marketing techniques, on forms of communication
based on persuasion in which voters, lacking
enduring political convictions, are motivated to select
a particular candidate or party at election time.
Being charismatic is a part of the politician's job.
However, to exude just the right amount of charisma
at the right time is extremely crucial. Following the
“ A politician will do anything to keep his job - even become an actor.”
thereby branding Labour Party as the 'New
Labour'.
Similarly, David Muir, a former adman and co
author of 'Business of Brands' is considered to
be the man behind Gordon Brown's PR
campaign. Back home, in 2009, L.K.Advani,
the BJP stalwart went the Obama way. He
started his rebranding campaign with the
statement, 'Man of Eighties, Vision of
Twenties'. He was projected as an ordinary
Indian
17| Buzz - The Markazine | SEP-OCT 201116| Buzz - The Markazine SEP-OCT 2011
Gyan
who was emotional, yet energetic enough to
give new direction to a country in political
turmoil. Like Obama's presidential campaign,
ads calling for Advani as P.M. were flashed in
more than 2,000 websites which were
frequented by Indians. Much on the lines of
Obama, Advani also wrote his biography which
was marketed in a planned manner.
The Cynical Voters:
Today, politicians not only thrive on their
leadership qualities but also on the PR that goes
behind it. The mind-set of voters taking part in
general elections has matured over the years.
Politically, they have become more aware and at
the same time, more demanding as well.
Therefore, it is essential that the political parties,
in the
near future, plan their political marketing in a
more responsive, accountable and professional
manner. This is the primary reason why
applications of brand management principles in
political parties are continuously increasing in
many countries.
Ghana's Story:
A South African brand management agency,
Brand Leadership Group was the brain behind
the political communication that led to the
success of Professor John Atta Mills, the
opposition NDC presidential candidate who was
sworn in as Ghana's president in 2009. Mills, a
former Vice-President in the Rawlings era
defeated the ruling party, NPP's Nana Akufo-Addo
in a tightly contested run-off on 28 December,
2008 claiming victory with 50.23% of the vote to
Akufo-Addo's 49.77%.
Brand Leadership Group, which was appointed by
the opposition party in early 2008 envisioned and
implemented the campaign right up to the run-off
which became necessary when a clear winner
could not emerge from the exit polls. Blending the
principles of marketing, branding and political
campaigning, the agency came up with a strategy
founded on what it called the 'Four-Phase political
branding' campaign designed to reassure
committed voters and re-establish the NDC and
Mills as the best custodians of Ghana's values.
ambitions and prosperity.
Conclusion:
in politics, all factors shaping voters' perceptions
– be it media, the politician's behavior itself, or
the actual issues raised by him, need to be
aligned in a manner that reflects good
leadership. The message should be simple,
unique, reassuring, aspiration, value-based and
credible. It is often observed that successful
politicians are have the ability to deliver simple,
credible and reassuring messages over time.
The characteristics of product branding are
related to political PR, like emotional connect,
promotion through multiple channels and
gaining trust. Trust building, in political PR, refers
to use of value-based words, phrases and
symbols to connect with the voters in order to
gain the necessary support. Politics is all about
trusting a candidate in the age of mistrust.
Hence, political brands can be cultivated as well
as contaminated through good PR.
Today, politicians not only thrive on their leadership qualities but
also on the PR that goes behind it. The mind-set of voters taking
part in general elections has matured over the years. Politically,
they have become more aware and at the same time, more
demanding as well.
19| Buzz - The Markazine | SEP-OCT 201118| Buzz - The Markazine SEP-OCT 2011
Gyan
who was emotional, yet energetic enough to
give new direction to a country in political
turmoil. Like Obama's presidential campaign,
ads calling for Advani as P.M. were flashed in
more than 2,000 websites which were
frequented by Indians. Much on the lines of
Obama, Advani also wrote his biography which
was marketed in a planned manner.
The Cynical Voters:
Today, politicians not only thrive on their
leadership qualities but also on the PR that goes
behind it. The mind-set of voters taking part in
general elections has matured over the years.
Politically, they have become more aware and at
the same time, more demanding as well.
Therefore, it is essential that the political parties,
in the
near future, plan their political marketing in a
more responsive, accountable and professional
manner. This is the primary reason why
applications of brand management principles in
political parties are continuously increasing in
many countries.
Ghana's Story:
A South African brand management agency,
Brand Leadership Group was the brain behind
the political communication that led to the
success of Professor John Atta Mills, the
opposition NDC presidential candidate who was
sworn in as Ghana's president in 2009. Mills, a
former Vice-President in the Rawlings era
defeated the ruling party, NPP's Nana Akufo-Addo
in a tightly contested run-off on 28 December,
2008 claiming victory with 50.23% of the vote to
Akufo-Addo's 49.77%.
Brand Leadership Group, which was appointed by
the opposition party in early 2008 envisioned and
implemented the campaign right up to the run-off
which became necessary when a clear winner
could not emerge from the exit polls. Blending the
principles of marketing, branding and political
campaigning, the agency came up with a strategy
founded on what it called the 'Four-Phase political
branding' campaign designed to reassure
committed voters and re-establish the NDC and
Mills as the best custodians of Ghana's values.
ambitions and prosperity.
Conclusion:
in politics, all factors shaping voters' perceptions
– be it media, the politician's behavior itself, or
the actual issues raised by him, need to be
aligned in a manner that reflects good
leadership. The message should be simple,
unique, reassuring, aspiration, value-based and
credible. It is often observed that successful
politicians are have the ability to deliver simple,
credible and reassuring messages over time.
The characteristics of product branding are
related to political PR, like emotional connect,
promotion through multiple channels and
gaining trust. Trust building, in political PR, refers
to use of value-based words, phrases and
symbols to connect with the voters in order to
gain the necessary support. Politics is all about
trusting a candidate in the age of mistrust.
Hence, political brands can be cultivated as well
as contaminated through good PR.
Today, politicians not only thrive on their leadership qualities but
also on the PR that goes behind it. The mind-set of voters taking
part in general elections has matured over the years. Politically,
they have become more aware and at the same time, more
demanding as well.
19| Buzz - The Markazine | SEP-OCT 201118| Buzz - The Markazine SEP-OCT 2011
Gyan
Every business aims for a share in the market and the
profits. Business functions have been divided so that
each of them is clear in its objectives and processes.
Healthy conflict ensures that the business benefits
the most and is in the best interests of all.
A l e a d
generated by
the marketing
personnel is
sent to the
sales team
who attribute
t h e
s u c c e s s f u l
conversion of
the prospect to the salesmen's efforts. However,
when unsuccessful, they blame the marketing team
for wasting their time and sending in a list of difficult
to convert or improperly analysed leads. Marketing,
in turn, dubs it as sales inefficiency. Be it a product's
success, resource sharing or compensation system,
the fight between Sales and Marketing seems to be a
perpetual one.
While marketing takes care of the product awareness
and branding related aspects taking into account the
long term view and nature of the market, sales is
more about building customer lists and relationships
in conjunction with the current targets.
Each has its own contribution and is
incomplete without the other. Consider a
situation where we have excellently pitched
our product to our target audience. Is our job
as an organization then complete? For
tangible results and measurement of our
marketing efforts, we need numbers and that
is where sales come to our rescue. After all,
selling is the sole purpose of producing which
is even captured by our financial statements.
Thus, selling involves two processes that need
to complement each other so as to
accomplish the goals of the organization.
The Push and Pull Strategies give a clearer
picture of marketing and sales. For example, the
buzz that Steve Jobs created for Apple on techno
geek blogs and in the entire media didn't require
sales of the products to be pushed. Rather, the
products were demanded due to extensive
advertising and promotion.
Marketing spends like advertising and
promotion are a function of sales. Citing an
example of Dabur, its A&P spends stood at
Rs.151.5 crore in the Q1FY12 which is
Affable by nature and easily
approachable, Nishant never shies
away from helping anyone in need.
He is a firm believer in the principle of
“Giving back to society”. He gels well
with team members and always
motivates others to give in their
100%. He believes in the mantra
“Practice what you Preach”. He is an
ardent cricket fan and himself an all-
rounder.
Roshan is simple, strong, disciplined,
confident and passionate about
sports. He loves to make new friends
and enjoys team work. A good leader,
he always comes forward to take
responsibilities and manages people
well. He loves travelling and listening
to music.
Authors
ICICI Bank adopted aggressive selling tactics when the Indian economy was booming, compromising seldom on the credit quality which consequently led to NPA's. Now they have adopted a conservative approach, contracting their selling in several product markets.
Sales vs. Marketing
The Fight and the Truce
21| Buzz - The Markazine | SEP-OCT 2011
Company Advertising and Promotion
spends as a % of sales
GCPL
11.7
Marico
11
HUL
Nirma Soaps* 11.5
1.25 to 2%
20| Buzz - The Markazine SEP-OCT 2011
Gyan
Nishant Hingu
Roshan Tirkey
Every business aims for a share in the market and the
profits. Business functions have been divided so that
each of them is clear in its objectives and processes.
Healthy conflict ensures that the business benefits
the most and is in the best interests of all.
A l e a d
generated by
the marketing
personnel is
sent to the
sales team
who attribute
t h e
s u c c e s s f u l
conversion of
the prospect to the salesmen's efforts. However,
when unsuccessful, they blame the marketing team
for wasting their time and sending in a list of difficult
to convert or improperly analysed leads. Marketing,
in turn, dubs it as sales inefficiency. Be it a product's
success, resource sharing or compensation system,
the fight between Sales and Marketing seems to be a
perpetual one.
While marketing takes care of the product awareness
and branding related aspects taking into account the
long term view and nature of the market, sales is
more about building customer lists and relationships
in conjunction with the current targets.
Each has its own contribution and is
incomplete without the other. Consider a
situation where we have excellently pitched
our product to our target audience. Is our job
as an organization then complete? For
tangible results and measurement of our
marketing efforts, we need numbers and that
is where sales come to our rescue. After all,
selling is the sole purpose of producing which
is even captured by our financial statements.
Thus, selling involves two processes that need
to complement each other so as to
accomplish the goals of the organization.
The Push and Pull Strategies give a clearer
picture of marketing and sales. For example, the
buzz that Steve Jobs created for Apple on techno
geek blogs and in the entire media didn't require
sales of the products to be pushed. Rather, the
products were demanded due to extensive
advertising and promotion.
Marketing spends like advertising and
promotion are a function of sales. Citing an
example of Dabur, its A&P spends stood at
Rs.151.5 crore in the Q1FY12 which is
Affable by nature and easily
approachable, Nishant never shies
away from helping anyone in need.
He is a firm believer in the principle of
“Giving back to society”. He gels well
with team members and always
motivates others to give in their
100%. He believes in the mantra
“Practice what you Preach”. He is an
ardent cricket fan and himself an all-
rounder.
Roshan is simple, strong, disciplined,
confident and passionate about
sports. He loves to make new friends
and enjoys team work. A good leader,
he always comes forward to take
responsibilities and manages people
well. He loves travelling and listening
to music.
Authors
ICICI Bank adopted aggressive selling tactics when the Indian economy was booming, compromising seldom on the credit quality which consequently led to NPA's. Now they have adopted a conservative approach, contracting their selling in several product markets.
Sales vs. Marketing
The Fight and the Truce
21| Buzz - The Markazine | SEP-OCT 2011
Company Advertising and Promotion
spends as a % of sales
GCPL
11.7
Marico
11
HUL
Nirma Soaps* 11.5
1.25 to 2%
20| Buzz - The Markazine SEP-OCT 2011
Gyan
Nishant Hingu
Roshan Tirkey
generation is possible by adequate promotion
activities. Marketing and Sales can hence be
compared to a basketball game where marketing
plays the role of a point guard creating and
defining opportunities and Salesmen, scoring
and
making numbers.
In the present state of abundance, where a
customer has a lot of alternatives to choose from,
it is important for companies to differentiate their
products and to survive in the current scenario,
it's not Sales OR Marketing that requires
attention, rather it is Sales AND Marketing that
would work wonders to earn those revenues
(Exhibit 3).
Revenues=f (Sales, Marketing, other units)
Scale and Friction: Consider a small scale
company where employees don the hats of
marketing, sales, operations, and finance all at
the same time. Eternal tiff of who is the real driver
of the revenues certainly does not arise in this
case. However, once the company matures and is
divided into various units for efficient
administration,a tiff does arise. Belittling
contribution of one for the other for revenue
purposes is indeed very myopic.
A common integrated approach including regular
meetings between the sales and the marketing
approximately 12.5% of their sales (* is % of
turnover)
Marketing expenditures in companies like
GCPL, Marico, and HUL follow a percentage
of sales method. Sales requires marketing
plans
and leads generation from the marketing
team. Thus, there exists a bi-directional flow
of information between the two. This also
ensures that resources are shared equitably.
For FMCG products, reaching out to
maximum retail outlets is the key. Indian
rural population which forms 68.83% of the
total population of 2011 is a huge potential
market, though with a lot of challenges,
logistics being the dominant one. Sales and
distribution is certainly a difficult task here
and the HUL Project, Shakti and Shaktimaan
(Exhibit 2), has proved that revenue
The tiff isn’t prevalent in small scale companies
between who is the driver of revenues- sales or
marketing. The issue becomes dominant when the
company grows in size.
India Population No. of people
Rural 83,30,87,662
Total 1,21,01,93,422
Company Gross sales Employee costs A & P spends
P & G India, Q4March’10-‘11 247.20 13.92 37.96
GCPL, Q1June’11-‘12 647.91 31.14 65.57 Dabur India Ltd, March ‘11* 3295.36 208.92 390.19
Nirma Ltd., March ’10* 3329.18 112.23 58.82
Exhibit 3- Gross Sales, Employee costs and Advertising and Promotion spends in crore
Exhibit 2- Project Shakti and Shaktimaan
Project Shakti
Ÿ Business objective: To extend direct reach into untapped markets and to build brands through
local influencers.
Ÿ It provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and
provides access to quality products across 100,000+ villages and over 3 million households every
month.
Ÿ It contributes to 10% of rural turnover nationally for HUL. In most Shakti markets, HUL is
dominant and enjoys a market share which is qualitatively better as compared to non-Shakti
markets.Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India.
Ÿ Project Shaktimaan enrols an unemployed or under-employed male member of a Shakti
family to sell our products in the surrounding villages.
Ÿ The initiative enhances two aspects simultaneously – livelihood opportunities of the Shakti
family and the quality and depth of the distribution of HUL products.
Ÿ By the end of 2010, there were more than 23,000 Shaktimaan representatives going to
villages across India.
Shakti Programme has helped in tripling the rural footprint by reaching out to increased
teams, employing efficient lead generation
mechanism and shuffling of people from sales to
marketing and vice versa to understand the other
side of the coin, will certainly help to call a truce
between the two.
23| Buzz - The Markazine | SEP-OCT 201122| Buzz - The Markazine SEP-OCT 2011
Gyan
generation is possible by adequate promotion
activities. Marketing and Sales can hence be
compared to a basketball game where marketing
plays the role of a point guard creating and
defining opportunities and Salesmen, scoring
and
making numbers.
In the present state of abundance, where a
customer has a lot of alternatives to choose from,
it is important for companies to differentiate their
products and to survive in the current scenario,
it's not Sales OR Marketing that requires
attention, rather it is Sales AND Marketing that
would work wonders to earn those revenues
(Exhibit 3).
Revenues=f (Sales, Marketing, other units)
Scale and Friction: Consider a small scale
company where employees don the hats of
marketing, sales, operations, and finance all at
the same time. Eternal tiff of who is the real driver
of the revenues certainly does not arise in this
case. However, once the company matures and is
divided into various units for efficient
administration,a tiff does arise. Belittling
contribution of one for the other for revenue
purposes is indeed very myopic.
A common integrated approach including regular
meetings between the sales and the marketing
approximately 12.5% of their sales (* is % of
turnover)
Marketing expenditures in companies like
GCPL, Marico, and HUL follow a percentage
of sales method. Sales requires marketing
plans
and leads generation from the marketing
team. Thus, there exists a bi-directional flow
of information between the two. This also
ensures that resources are shared equitably.
For FMCG products, reaching out to
maximum retail outlets is the key. Indian
rural population which forms 68.83% of the
total population of 2011 is a huge potential
market, though with a lot of challenges,
logistics being the dominant one. Sales and
distribution is certainly a difficult task here
and the HUL Project, Shakti and Shaktimaan
(Exhibit 2), has proved that revenue
The tiff isn’t prevalent in small scale companies
between who is the driver of revenues- sales or
marketing. The issue becomes dominant when the
company grows in size.
India Population No. of people
Rural 83,30,87,662
Total 1,21,01,93,422
Company Gross sales Employee costs A & P spends
P & G India, Q4March’10-‘11 247.20 13.92 37.96
GCPL, Q1June’11-‘12 647.91 31.14 65.57 Dabur India Ltd, March ‘11* 3295.36 208.92 390.19
Nirma Ltd., March ’10* 3329.18 112.23 58.82
Exhibit 3- Gross Sales, Employee costs and Advertising and Promotion spends in crore
Exhibit 2- Project Shakti and Shaktimaan
Project Shakti
Ÿ Business objective: To extend direct reach into untapped markets and to build brands through
local influencers.
Ÿ It provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and
provides access to quality products across 100,000+ villages and over 3 million households every
month.
Ÿ It contributes to 10% of rural turnover nationally for HUL. In most Shakti markets, HUL is
dominant and enjoys a market share which is qualitatively better as compared to non-Shakti
markets.Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India.
Ÿ Project Shaktimaan enrols an unemployed or under-employed male member of a Shakti
family to sell our products in the surrounding villages.
Ÿ The initiative enhances two aspects simultaneously – livelihood opportunities of the Shakti
family and the quality and depth of the distribution of HUL products.
Ÿ By the end of 2010, there were more than 23,000 Shaktimaan representatives going to
villages across India.
Shakti Programme has helped in tripling the rural footprint by reaching out to increased
teams, employing efficient lead generation
mechanism and shuffling of people from sales to
marketing and vice versa to understand the other
side of the coin, will certainly help to call a truce
between the two.
23| Buzz - The Markazine | SEP-OCT 201122| Buzz - The Markazine SEP-OCT 2011
Gyan
products/services and hence no brand loyalty
involved.
!·Customer Engagement, where companies
start engaging customers on a long term basis.
This is the first step towards building Customer
loyalty. Various methods used include online
forums to collect customer reviews, upgrading
and modifying products asper customers'
feedback and informing customers that their
complaints and suggestions have been given
due consideration, sending invites to customers
f o r c o m p a n y f e s t s e t c .
! Customer Delight which means that the
customers are delighted to be associated with a
brand and are brand loyal.
The most important question – Why is there so
much focus on gaining customers' loyalty?
It's simple. Because it costs five times as much
to find a new customer than it does to get a
current customer to come back, Customer
Retention and Customer Perceived Life time
value (CPV) hold greater significance than
Rahul Kumar
Rahul is pursuing Post Graduate
Programme in Management from
IIM Lucknow 2011-13. He has done
B . E . i n E l e c t r o n i c s a n d
Communication from Manipal
University and has worked with
Honeywell for 22 months as
Hardware Engineer.
Customer Loyalty Programs:
Enough for Customer retention?
Trisha Pandey
Ÿ
Trisha is pursuing her Master of
Management at SJMSOM, IIT
Bombay 2011-13. She has done
B . E . i n E l e c t r o n i c s a n d
Communication from Manipal
University and has worked for 34
months in VLSI domain with
Freescale Semiconductor India
Pvt. Ltd. as Senior Design Engineer.
Customer satisfaction is worthless. Customer loyalty is
priceless.
- -Jeffrey Gitomer
Over the years marketing strategy of companies has
evolved from the product concept to selling concept to
marketing concept to societal marketing concept and
now to the holistic marketing concept. Customers form
the center of marketing system and all marketing
strategies devised by the marketers like loyalty programs
etc. revolve around the customer. There are three levels
of customers' relationship hierarchy, which companies
try to achieve one after the other.
There are three levels of customers' relationship
hierarchy, which companies try to achieve one after the
other.
!·The first level is Customer Satisfaction, the basic intent
of which is to identify and satisfy customers' needs. There
is no distinction involved at this stage since customers
may be sat i s f ied by us ing any company 's
Customer Acquisition.
Companies have resorted to the use of various
programs intended to build Customer Loyalty –
a loyalty card, rewards card, points or club
card, membership programs, onl ine
communities etc. The holders of these cards or
members of communities are offered discount
on purchase of company's products or points
in lieu of which they get gifts/freebies.
Here is a simple but powerful rule - always give people more than what they expect to get.
- Nelson Boswell
25| Buzz - The Markazine | SEP-OCT 2011
24| Buzz - The Markazine SEP-OCT 2011
Trendz
products/services and hence no brand loyalty
involved.
!·Customer Engagement, where companies
start engaging customers on a long term basis.
This is the first step towards building Customer
loyalty. Various methods used include online
forums to collect customer reviews, upgrading
and modifying products asper customers'
feedback and informing customers that their
complaints and suggestions have been given
due consideration, sending invites to customers
f o r c o m p a n y f e s t s e t c .
! Customer Delight which means that the
customers are delighted to be associated with a
brand and are brand loyal.
The most important question – Why is there so
much focus on gaining customers' loyalty?
It's simple. Because it costs five times as much
to find a new customer than it does to get a
current customer to come back, Customer
Retention and Customer Perceived Life time
value (CPV) hold greater significance than
Rahul Kumar
Rahul is pursuing Post Graduate
Programme in Management from
IIM Lucknow 2011-13. He has done
B . E . i n E l e c t r o n i c s a n d
Communication from Manipal
University and has worked with
Honeywell for 22 months as
Hardware Engineer.
Customer Loyalty Programs:
Enough for Customer retention?
Trisha Pandey
Ÿ
Trisha is pursuing her Master of
Management at SJMSOM, IIT
Bombay 2011-13. She has done
B . E . i n E l e c t r o n i c s a n d
Communication from Manipal
University and has worked for 34
months in VLSI domain with
Freescale Semiconductor India
Pvt. Ltd. as Senior Design Engineer.
Customer satisfaction is worthless. Customer loyalty is
priceless.
- -Jeffrey Gitomer
Over the years marketing strategy of companies has
evolved from the product concept to selling concept to
marketing concept to societal marketing concept and
now to the holistic marketing concept. Customers form
the center of marketing system and all marketing
strategies devised by the marketers like loyalty programs
etc. revolve around the customer. There are three levels
of customers' relationship hierarchy, which companies
try to achieve one after the other.
There are three levels of customers' relationship
hierarchy, which companies try to achieve one after the
other.
!·The first level is Customer Satisfaction, the basic intent
of which is to identify and satisfy customers' needs. There
is no distinction involved at this stage since customers
may be sat i s f ied by us ing any company 's
Customer Acquisition.
Companies have resorted to the use of various
programs intended to build Customer Loyalty –
a loyalty card, rewards card, points or club
card, membership programs, onl ine
communities etc. The holders of these cards or
members of communities are offered discount
on purchase of company's products or points
in lieu of which they get gifts/freebies.
Here is a simple but powerful rule - always give people more than what they expect to get.
- Nelson Boswell
25| Buzz - The Markazine | SEP-OCT 2011
24| Buzz - The Markazine SEP-OCT 2011
Trendz
How does one go about building customer
loyalty?
Customer loyalty is not earned in a day, it involves
continuous effort throughout. Customer loyalty
cannot be sustained for long unless the quality of
products/services offered by the company is not
up to the expectation and so is the case with
post-purchase
services. It is important to listen to customer's
p e r c e p t i o n o f t h e b r a n d a n d
simultaneously also analyze the reasons for
s w i t c h i n g / d e f e c t i o n .
!Communication – The key to any long term
relationship be it personal, professional or
emotional is communication. Communication
being a two way process; it is as important to
communicate the attributes and values of
product/service to the customer as listening to
the customers for their likes, dislikes,
grievances, etc.
!Consistency – The best way to build rapport
with a customer is to be consistent in quality
and other deliverables like on time delivery
and responsiveness to consumer demand.
From day to day goods low involvement
products like FMCG to high involvement
products like automobiles a customer wants
consistent performance every time one buys
or consumes it.
!Credibility – This is the most important trait
that links the company's performance to its
brand value. Delivering to the customers what
is claimed and finding the correct solution to a
customer's requirement are two ways how a
company can bring credibility to its brand and
itself. A customer is willing to wait for a certain
amount of time to get what he needs rather
than settle for a solution that can only be
termed as 'jugaad'.
!Surprise – Give the customer more than what
they expect. An act as simple as greeting cards sent
on the occasion of New Year or an e-mail expressing
gratitude, a follow-up phone call to know how if they
like a product/service goes a long way in building
relationships. And like in any other relationship a
company cannot afford to take customers for
granted.
The overall gist is that the “Customers are the soul
of any business”. For an organization to sustain in
long term and to grow its top-line the need is not
only Customer Acquisition through capture of new
markets, Market Penetration or Product
Diversification but Customer Retention through
game changer strategy of Customer Loyalty. At the
same time the brands should exercise extreme care
that the loyalty once built is not thwarted by any
compromise on quality of products/services.
Precisely, Customer Delight is a high returns, high
risk stage to be in.
Loyal customers, they don't just come back, they don't
simply recommend you, they insist that their friends do
business with you.- Chip Bell, Founder Chip Bell Group
PG | Buzz - The Markazine | SEP-OCT 201126| Buzz - The Markazine SEP-OCT 2011
Trendz
How does one go about building customer
loyalty?
Customer loyalty is not earned in a day, it involves
continuous effort throughout. Customer loyalty
cannot be sustained for long unless the quality of
products/services offered by the company is not
up to the expectation and so is the case with
post-purchase
services. It is important to listen to customer's
p e r c e p t i o n o f t h e b r a n d a n d
simultaneously also analyze the reasons for
s w i t c h i n g / d e f e c t i o n .
!Communication – The key to any long term
relationship be it personal, professional or
emotional is communication. Communication
being a two way process; it is as important to
communicate the attributes and values of
product/service to the customer as listening to
the customers for their likes, dislikes,
grievances, etc.
!Consistency – The best way to build rapport
with a customer is to be consistent in quality
and other deliverables like on time delivery
and responsiveness to consumer demand.
From day to day goods low involvement
products like FMCG to high involvement
products like automobiles a customer wants
consistent performance every time one buys
or consumes it.
!Credibility – This is the most important trait
that links the company's performance to its
brand value. Delivering to the customers what
is claimed and finding the correct solution to a
customer's requirement are two ways how a
company can bring credibility to its brand and
itself. A customer is willing to wait for a certain
amount of time to get what he needs rather
than settle for a solution that can only be
termed as 'jugaad'.
!Surprise – Give the customer more than what
they expect. An act as simple as greeting cards sent
on the occasion of New Year or an e-mail expressing
gratitude, a follow-up phone call to know how if they
like a product/service goes a long way in building
relationships. And like in any other relationship a
company cannot afford to take customers for
granted.
The overall gist is that the “Customers are the soul
of any business”. For an organization to sustain in
long term and to grow its top-line the need is not
only Customer Acquisition through capture of new
markets, Market Penetration or Product
Diversification but Customer Retention through
game changer strategy of Customer Loyalty. At the
same time the brands should exercise extreme care
that the loyalty once built is not thwarted by any
compromise on quality of products/services.
Precisely, Customer Delight is a high returns, high
risk stage to be in.
Loyal customers, they don't just come back, they don't
simply recommend you, they insist that their friends do
business with you.- Chip Bell, Founder Chip Bell Group
PG | Buzz - The Markazine | SEP-OCT 201126| Buzz - The Markazine SEP-OCT 2011
Trendz
“What's in it for me?” was the question,
popped in the midst of a crowd of 450
students, to us. “A roller-coaster ride” is what
we replied. True to our word, we presented to
the batch a ride to remember in the form of
'Pitchfork'. The participants modified the old
said proverb to, “Little pitchers have long and
sharp ears”. Wit and marketing skills were put
to test over four rounds with rigorous tasks of
planning and selling involved in each.
Next to hit the floor was 'Two-Timers', a red
carpet welcome to the world of marketing!The
theme was laid with the beauty of marketing
mix by incorporating the product into 'Be
Anagramically wise', place into 'Treasure
hunt', price into 'Guess' and promotion into
'Brand Stand'.
ConQuest2011
And the ride doesn't end here. Enter the 'King of
good times'- NJM Conquest. It is a platform given
to the junior committee members to have a first-
hand experience of the world of marketing.
Interaction with over 2000 customers while
mapping responses for five big brands is
definitely a major addition to the skill set; and all
this along with fun-filled salesmanship,
questioning and shadowing! It is the sheer
pleasure derived, at the end of the day, from a
realization that a plethora of questions like how,
why, who, when, where, which, whose, whom et
al of consumer behaviour got answered, that
counts. That was just the beginning now the real
fun starts (analysis), late nights, packed
schedules are all a common place. And that is
exactly what we believe in. That is 'Not Just
Marketing'.
N J MFEATURE
Some of the brands at ConQuest 2011 . .
28| Buzz - The Markazine SEP-OCT 2011 29| Buzz - The Markazine | SEP-OCT 2011
“What's in it for me?” was the question,
popped in the midst of a crowd of 450
students, to us. “A roller-coaster ride” is what
we replied. True to our word, we presented to
the batch a ride to remember in the form of
'Pitchfork'. The participants modified the old
said proverb to, “Little pitchers have long and
sharp ears”. Wit and marketing skills were put
to test over four rounds with rigorous tasks of
planning and selling involved in each.
Next to hit the floor was 'Two-Timers', a red
carpet welcome to the world of marketing!The
theme was laid with the beauty of marketing
mix by incorporating the product into 'Be
Anagramically wise', place into 'Treasure
hunt', price into 'Guess' and promotion into
'Brand Stand'.
ConQuest2011
And the ride doesn't end here. Enter the 'King of
good times'- NJM Conquest. It is a platform given
to the junior committee members to have a first-
hand experience of the world of marketing.
Interaction with over 2000 customers while
mapping responses for five big brands is
definitely a major addition to the skill set; and all
this along with fun-filled salesmanship,
questioning and shadowing! It is the sheer
pleasure derived, at the end of the day, from a
realization that a plethora of questions like how,
why, who, when, where, which, whose, whom et
al of consumer behaviour got answered, that
counts. That was just the beginning now the real
fun starts (analysis), late nights, packed
schedules are all a common place. And that is
exactly what we believe in. That is 'Not Just
Marketing'.
N J MFEATURE
Some of the brands at ConQuest 2011 . .
28| Buzz - The Markazine SEP-OCT 2011 29| Buzz - The Markazine | SEP-OCT 2011
Print Ads
31| Buzz - The Markazine | SEP-OCT 201130| Buzz - The Markazine SEP-OCT 2011
From over 80 entries from all over India, these were the top 4 that made the cut !!
Winner
Runners Up
By Adi
tya
Nair-
K J S
omai
ya
By Avik Ghosh - NITIE
Print Ads
31| Buzz - The Markazine | SEP-OCT 201130| Buzz - The Markazine SEP-OCT 2011
From over 80 entries from all over India, these were the top 4 that made the cut !!
Winner
Runners Up
By Adi
tya
Nair-
K J S
omai
ya
By Avik Ghosh - NITIE
Maze A
1) The Ex-Chairman of a legendary Indian firm.
whose famous quote is “After all a promise is a
promise”
2) Passed a statement recently," There is a need
for us to satisfy that there is no hostility towards
us for the state. Which state?
3) This state has a new de-anglicized name now.
What is it?
Maze B
1) A physician-writer who was banned from her
own country. Who is she?
2) Hence she was made to exit her country to
start a life in exile here. Where?
3) This country is the largest exporter of
_______.
Maze C
1) This brand has moved from orange to pink to
red. Which brand is it?
2) This is its unusual brand ambassador.
Maze D
1) This company has a plant in Manesar. Which
company is it?
2) Its literal meaning is taken from the name of
the father of this worshipped devotee. Who is
he?
3) An animated movie was made on him under the
banner of_______.
Maze E
1) The new Chairman of “what keeps the doctor
away” –_________.
2) He shares his last name with which famous
travel agency?
Maze F
1) Its tourism advertisement says- "God's own
country". We are talking about ________.
2) But it does not have what Gujarat does (In the
form of a brand ambassador). What is it?
3) He recently made everyone familiar with a
genetic disease through his work. Which disease?
Churn
PG | Buzz - The Markazine | Feb - Jun 2011 33| Buzz - The Markazine | SEP-OCT 2011
Unleash the maze
Answers: A Ratan Tata, West Bengal, Paschim Banga. B Taslima Nasreen, Sweden, Music (Pop and Rock) C Vodafone, Pug D Maruti, Hanuman, Sahara E Tim Cook, Thomas Cook F Kerala, Amitabh Bachchan, Progeria
Competition
32| Buzz - The Markazine SEP-OCT 2011
OnlineCase Study Competition
OnlineCase Study Competition
&
Coming Soon . .
present
Cash Prize
Rs. 10,000/-
keep watching . .
Maze A
1) The Ex-Chairman of a legendary Indian firm.
whose famous quote is “After all a promise is a
promise”
2) Passed a statement recently," There is a need
for us to satisfy that there is no hostility towards
us for the state. Which state?
3) This state has a new de-anglicized name now.
What is it?
Maze B
1) A physician-writer who was banned from her
own country. Who is she?
2) Hence she was made to exit her country to
start a life in exile here. Where?
3) This country is the largest exporter of
_______.
Maze C
1) This brand has moved from orange to pink to
red. Which brand is it?
2) This is its unusual brand ambassador.
Maze D
1) This company has a plant in Manesar. Which
company is it?
2) Its literal meaning is taken from the name of
the father of this worshipped devotee. Who is
he?
3) An animated movie was made on him under the
banner of_______.
Maze E
1) The new Chairman of “what keeps the doctor
away” –_________.
2) He shares his last name with which famous
travel agency?
Maze F
1) Its tourism advertisement says- "God's own
country". We are talking about ________.
2) But it does not have what Gujarat does (In the
form of a brand ambassador). What is it?
3) He recently made everyone familiar with a
genetic disease through his work. Which disease?
Churn
PG | Buzz - The Markazine | Feb - Jun 2011 33| Buzz - The Markazine | SEP-OCT 2011
Unleash the maze
Answers: A Ratan Tata, West Bengal, Paschim Banga. B Taslima Nasreen, Sweden, Music (Pop and Rock) C Vodafone, Pug D Maruti, Hanuman, Sahara E Tim Cook, Thomas Cook F Kerala, Amitabh Bachchan, Progeria
Competition
32| Buzz - The Markazine SEP-OCT 2011
OnlineCase Study Competition
OnlineCase Study Competition
&
Coming Soon . .
present
Cash Prize
Rs. 10,000/-
keep watching . .