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Transcript of Buzz - The Markazine, June 2011
JUNE ’11Vol. III Issue I
When my fist clenches, crack it open
Before I use it and lose my cool
When I smile, tell me some bad news
Before I laugh and act like a fool
- The Who
When we come to the end of one year of our ever so
hyped MBA, there is that sudden surge of 'knowledge
acknowledgement' that our brain generates waves
of. All of a sudden on the first day of the last year of
MBA, we feel we have somehow managed to grasp
and maneuver our way through those coils and coils
of matrices and curves and chains the fathers and
grandfathers of Marketing have plotted years earlier.
And if it does not happen on the aforementioned day,
it definitely kicks in when we first see 'fresh' fruit.
Somehow, it does happen. Somehow it should not.
When we embarked on the expedition of starting
work on this issue, before any of the above
unfortunate (un)realizations occurred, we were glad
to get a kick, though of a different kind. We realized
that the matrices and curves and all of those
creeping things on paper mean just that much less,
more so as each decade passes. So we thought it
best to simply see what the future might just hold,
with a passing glance in the rear view mirror. Whether
it be trying to untangle the millions (zillions you say?
Maybe. The count never seems to end) of nerves in
the head and figure out just what goes on there, or
trying to figure out why would someone chop off toes
to wear those Jimmy Choos, or how the fundamental
definition of food is taking a blurred form, we tried to
Neelotpal Shukla
Nishchai Nevrekar
Gaurav Modi
Rachita Behl
Kushal Mehta
Krishnakant Jonnalgadda
Tushar Kumar
Nandini Kapur
Pawas Soni
Naresh Chandak
Neha Talwar
Puneet Aggarwal
Team
2 | Buzz - The Markazine | Jun 2011 3 | Buzz - The Markazine | Jun 2011
Ed Speak
The Eds
Kushal Mehta
Krishnakant Jonnalgadda
Designed by
Nishchai Nevrekar
unlock that whimsical romance of nerve and
nerves, and just extend our period of
learning, albeit beyond classes this time.
We wish you just tag along. The year is just
getting started !
TrendzThe power of Co-Creation 4MICA
Blurring Food Categories 8NMiMS, Mumbai
Marketing to the High Net Worth Customer 12NMiMS, Mumbai
Cover StoryIts all in the Mind 18
GyaanSocial Marketing 26IRMA
Crowd Sourcing 30NM Dalmia
FeatureEuphoria & NjM Week 34
PremièreNamaste StarBucks 22GIM
Contents
When my fist clenches, crack it open
Before I use it and lose my cool
When I smile, tell me some bad news
Before I laugh and act like a fool
- The Who
When we come to the end of one year of our ever so
hyped MBA, there is that sudden surge of 'knowledge
acknowledgement' that our brain generates waves
of. All of a sudden on the first day of the last year of
MBA, we feel we have somehow managed to grasp
and maneuver our way through those coils and coils
of matrices and curves and chains the fathers and
grandfathers of Marketing have plotted years earlier.
And if it does not happen on the aforementioned day,
it definitely kicks in when we first see 'fresh' fruit.
Somehow, it does happen. Somehow it should not.
When we embarked on the expedition of starting
work on this issue, before any of the above
unfortunate (un)realizations occurred, we were glad
to get a kick, though of a different kind. We realized
that the matrices and curves and all of those
creeping things on paper mean just that much less,
more so as each decade passes. So we thought it
best to simply see what the future might just hold,
with a passing glance in the rear view mirror. Whether
it be trying to untangle the millions (zillions you say?
Maybe. The count never seems to end) of nerves in
the head and figure out just what goes on there, or
trying to figure out why would someone chop off toes
to wear those Jimmy Choos, or how the fundamental
definition of food is taking a blurred form, we tried to
Neelotpal Shukla
Nishchai Nevrekar
Gaurav Modi
Rachita Behl
Kushal Mehta
Krishnakant Jonnalgadda
Tushar Kumar
Nandini Kapur
Pawas Soni
Naresh Chandak
Neha Talwar
Puneet Aggarwal
Team
2 | Buzz - The Markazine | Jun 2011 3 | Buzz - The Markazine | Jun 2011
Ed Speak
The Eds
Kushal Mehta
Krishnakant Jonnalgadda
Designed by
Nishchai Nevrekar
unlock that whimsical romance of nerve and
nerves, and just extend our period of
learning, albeit beyond classes this time.
We wish you just tag along. The year is just
getting started !
TrendzThe power of Co-Creation 4MICA
Blurring Food Categories 8NMiMS, Mumbai
Marketing to the High Net Worth Customer 12NMiMS, Mumbai
Cover StoryIts all in the Mind 18
GyaanSocial Marketing 26IRMA
Crowd Sourcing 30NM Dalmia
FeatureEuphoria & NjM Week 34
PremièreNamaste StarBucks 22GIM
Contents
Not long back, there was a time when there existed
only a few brands in each product category, thus
giving the consumer limited options to purchase
from. In just a decade, a time has come when there
exists innumerable brands in almost every product
category, and the consumer is in absolute quandary
regarding how to make the best selection from
among an ocean of choices. Not just that, the world
has seen a boom in the media industry in terms of its
reach to the audience, giving the marketers a long
awaited means of promotion that is cheap, effective
and covers a majority of the target audience. Thus
the industry saw a sharp rise in the advertising
spends of majority of the organizations and the
audience was bombarded with advertisements from
all sides; be the through the television, the radio, the
newspaper, magazines or out-of-home media. This
has further confused the already confused audience.
Thus, in order to break the clutter of advertisements,
the marketing strategy of organizations has seen a
complete metamorphosis in the past few years, and
one of the most effective of them all is customer
engagement via co-creation.
Customer co-creation (a term coined by Venkat
Ramaswamy and C.K. Prahalad) is a concept of
customer engagement in which the brand and the
customer work together for creation of value by the
brand for the customer (Gouillart, The Power of Co-
Creation). In co-creation, a brand asks its
customers as to what they want from
the brand, and then makes them
partners in creating the
same. In most cases, co-
creation is a win-win
situation for the brand and
the customers because the
customers help the brand know
precisely what they want, and in this
process the brand creates something they can
be sure about.
A classic example of customer engagement
through co-creation is that of Lays from Frito
lay. Lays came out with an idea on
customer engagement called
'Give Us Your Dillicious Flavour'.
In this case, Lays came out with
a contest in which consumers
had to suggest new flavours for
lays. Lays would then select four
best flavours and launch them in the
Indian market. As one might predict, the
campaign cum contest was a huge success. It
increased their brand recognition, customer
loyalty and word of mouth publicity.
Another classic example of co-
creation is that of Starbucks
coffee. Starbucks launched a
forum called 'My Starbucks
Idea' which is an online
community of the Starbucks
customers. The reason of the
launch of this platform is to enable
them to know their customers well and to
understand their psyche. The customers give
their idea on a range of topics like - how the
waiters should be dressed?, should they wear
nameplates?, making ice cubes out
of coffee, kind of food served,
varieties of coffee served, the
interior of the cafes, etc. Then
these ideas are voted upon by
other customers and the best
ideas are rewarded. Not just this,
these ideas are even implemented
in the Starbucks cafes. This way the
management comes to know for sure that what
Sharad GaurIs a First year Post-Graduate
Management student at Mudra
Inst i tute of Communicat ions
Ahmedabad (MICA), pursuing Post
G r a d u a t e D i p l o m a i n
Communications Management.
He belongs to Jaipur and has done
his graduation from the Institute of
Te c h n o l o g y, B a n a r a s H i n d u
University. After working in the
software industry for 2 years he
joined MICA to specialize in branding.
His interests include outdoor sports,
photography and trying out new
cuisines.
Author
“In order to break the clutter of advertisements, the marketing strategy of organizations has seen a complete metamorphosis in the past few years, and one of the most effective of them all is customer engagement via Co-Creation”
The Power of Co-Creation
4 | Buzz - The Markazine | Jun 2011 5 | Buzz - The Markazine | Jun 2011
TRENDZ
Not long back, there was a time when there existed
only a few brands in each product category, thus
giving the consumer limited options to purchase
from. In just a decade, a time has come when there
exists innumerable brands in almost every product
category, and the consumer is in absolute quandary
regarding how to make the best selection from
among an ocean of choices. Not just that, the world
has seen a boom in the media industry in terms of its
reach to the audience, giving the marketers a long
awaited means of promotion that is cheap, effective
and covers a majority of the target audience. Thus
the industry saw a sharp rise in the advertising
spends of majority of the organizations and the
audience was bombarded with advertisements from
all sides; be the through the television, the radio, the
newspaper, magazines or out-of-home media. This
has further confused the already confused audience.
Thus, in order to break the clutter of advertisements,
the marketing strategy of organizations has seen a
complete metamorphosis in the past few years, and
one of the most effective of them all is customer
engagement via co-creation.
Customer co-creation (a term coined by Venkat
Ramaswamy and C.K. Prahalad) is a concept of
customer engagement in which the brand and the
customer work together for creation of value by the
brand for the customer (Gouillart, The Power of Co-
Creation). In co-creation, a brand asks its
customers as to what they want from
the brand, and then makes them
partners in creating the
same. In most cases, co-
creation is a win-win
situation for the brand and
the customers because the
customers help the brand know
precisely what they want, and in this
process the brand creates something they can
be sure about.
A classic example of customer engagement
through co-creation is that of Lays from Frito
lay. Lays came out with an idea on
customer engagement called
'Give Us Your Dillicious Flavour'.
In this case, Lays came out with
a contest in which consumers
had to suggest new flavours for
lays. Lays would then select four
best flavours and launch them in the
Indian market. As one might predict, the
campaign cum contest was a huge success. It
increased their brand recognition, customer
loyalty and word of mouth publicity.
Another classic example of co-
creation is that of Starbucks
coffee. Starbucks launched a
forum called 'My Starbucks
Idea' which is an online
community of the Starbucks
customers. The reason of the
launch of this platform is to enable
them to know their customers well and to
understand their psyche. The customers give
their idea on a range of topics like - how the
waiters should be dressed?, should they wear
nameplates?, making ice cubes out
of coffee, kind of food served,
varieties of coffee served, the
interior of the cafes, etc. Then
these ideas are voted upon by
other customers and the best
ideas are rewarded. Not just this,
these ideas are even implemented
in the Starbucks cafes. This way the
management comes to know for sure that what
Sharad GaurIs a First year Post-Graduate
Management student at Mudra
Inst i tute of Communicat ions
Ahmedabad (MICA), pursuing Post
G r a d u a t e D i p l o m a i n
Communications Management.
He belongs to Jaipur and has done
his graduation from the Institute of
Te c h n o l o g y, B a n a r a s H i n d u
University. After working in the
software industry for 2 years he
joined MICA to specialize in branding.
His interests include outdoor sports,
photography and trying out new
cuisines.
Author
“In order to break the clutter of advertisements, the marketing strategy of organizations has seen a complete metamorphosis in the past few years, and one of the most effective of them all is customer engagement via Co-Creation”
The Power of Co-Creation
4 | Buzz - The Markazine | Jun 2011 5 | Buzz - The Markazine | Jun 2011
TRENDZ
farmers could get the best deal for their produce,
while ITC could get the best quality ram material
for further processing and sales. The concept of
e-choupals was so successful that today ITC has
more than 6500 e-choupals and nearly 150
hubs, which serves almost 40,000 villages and
four million farmers across 10 Indian states
(Gouillart, Building the Co-Creative Enterprise,
2010).
From the above discussion, we see the power of
co-creation if implemented properly. It becomes
a very valuable proposition for the brand as well
as the consumers. It saves a brand a lot of
resources which the brand must have otherwise
spent in finding out what the customer needs. At
the same time, it benefits the consumers as they
get the desired product from their cherished
brand. Not just this, customer engagement
serves a bigger purpose.
A few of the benefits are mentioned below:
! Satisfied customers results in customer
retention.
! Word of mouth publicity for the brand.
! Acquisition of more customers due to
awareness and WOM publicity.
! Better products in the market for the
consumers.
! More competition in the market, hence
better service and product quality.
! Check on any bad word of mouth.
! Direct contact with the consumer for
suggestions and grievance solutions.
Thus, we can say that customer engagement and
customer co-creation are the need of the hour if
marketers have to be successful in successfully
delivering value for the customers in order to
establish credibility and trust in the market as
well as be profitable on a long run.
kind of a change the customers want.
!ITC e-choupal is perhaps the most
successful Indian examples of co-creation.
'e-choupals' are internet kiosks in rural areas
within walking distance of many villages.
Each kiosk provided information in local
dialect on daily weather forecast, crop prices,
advice on farming methods; email service
that let farmers interact with scientists at
agricultural universities, technical people at
ITC, fellow farmers; access to land records,
health and educational services and
in format ion f rom NGOs on la test
developments in cattle breeding and crop
seeds. Each kiosk was managed by a fellow
head farmer called 'snachalak' who publicly
swore allegiance to them. These kiosks were
further connected by hubs called choupal
saagars. Each choupal saagar connects
about 40-50 e-choupals. In contrast to
mandis, they employ electronic weighing
machines, conduct objective quality testing
and pay farmers in full on the spot. Thus
“Customer engagement and customer co-creation are
the need of the hour in order to establish credibility
and trust in the market as well as be profitable on a
long run”
6 | Buzz - The Markazine | Jun 2011 7 | Buzz - The Markazine | Jun 2011
TRENDZ
farmers could get the best deal for their produce,
while ITC could get the best quality ram material
for further processing and sales. The concept of
e-choupals was so successful that today ITC has
more than 6500 e-choupals and nearly 150
hubs, which serves almost 40,000 villages and
four million farmers across 10 Indian states
(Gouillart, Building the Co-Creative Enterprise,
2010).
From the above discussion, we see the power of
co-creation if implemented properly. It becomes
a very valuable proposition for the brand as well
as the consumers. It saves a brand a lot of
resources which the brand must have otherwise
spent in finding out what the customer needs. At
the same time, it benefits the consumers as they
get the desired product from their cherished
brand. Not just this, customer engagement
serves a bigger purpose.
A few of the benefits are mentioned below:
! Satisfied customers results in customer
retention.
! Word of mouth publicity for the brand.
! Acquisition of more customers due to
awareness and WOM publicity.
! Better products in the market for the
consumers.
! More competition in the market, hence
better service and product quality.
! Check on any bad word of mouth.
! Direct contact with the consumer for
suggestions and grievance solutions.
Thus, we can say that customer engagement and
customer co-creation are the need of the hour if
marketers have to be successful in successfully
delivering value for the customers in order to
establish credibility and trust in the market as
well as be profitable on a long run.
kind of a change the customers want.
!ITC e-choupal is perhaps the most
successful Indian examples of co-creation.
'e-choupals' are internet kiosks in rural areas
within walking distance of many villages.
Each kiosk provided information in local
dialect on daily weather forecast, crop prices,
advice on farming methods; email service
that let farmers interact with scientists at
agricultural universities, technical people at
ITC, fellow farmers; access to land records,
health and educational services and
in format ion f rom NGOs on la test
developments in cattle breeding and crop
seeds. Each kiosk was managed by a fellow
head farmer called 'snachalak' who publicly
swore allegiance to them. These kiosks were
further connected by hubs called choupal
saagars. Each choupal saagar connects
about 40-50 e-choupals. In contrast to
mandis, they employ electronic weighing
machines, conduct objective quality testing
and pay farmers in full on the spot. Thus
“Customer engagement and customer co-creation are
the need of the hour in order to establish credibility
and trust in the market as well as be profitable on a
long run”
6 | Buzz - The Markazine | Jun 2011 7 | Buzz - The Markazine | Jun 2011
TRENDZ
Call it the two-in-one phenomenon; brands are
blurring food category boundaries by positioning
their products to be relevant in multiple categories.
Companies are using innovations, packaging
changes and cross-category placements to extend
the same product to different categories. Brands are
not trying to take on the well-entrenched category
leaders directly but are instead broadening the
domain within which their brand plays. Changing
lifestyles and increased overseas travel has
introduced new flavors and textures into the Indian
palate. And brand extensions are catering to this
need. Everyone is trying to solve the dichotomy of
taste and health today.
Biscuit OR Chocolate ?
Nestlé and Lindt are among the top confectionery
players who have blurred the distinction between
chocolate and biscuits by launching biscuit products
of their own. Nestlé has recently sought to expand its
Smarties brand and gave it a boost by launching
Smarties cookies. Ferrero also launched its first non-
chocolate-based snack under the Kinder brand in the
form of Kinder Happy Hippo long back in
2002. This is made up of a hippo-shaped
wafer shell which is filled with hazelnut and
.
Snack Bar OR Chocolate?
Snack bars typically compete with chocolate
bars by positioning themselves as a tasty but
healthy alternative. This is the case across all
sectors including granola bars, which focus on
health and naturalness; energy bars, which
focus on functionality; and breakfast bars,
which play on the link with breakfast cereals.
This is also the case with other snack bars,
including sesame seed bars in Eastern
milk cream
Europe, and fruit bars in the UK and the US.
Even though snack bars are increasingly
covered in sugar and chocolate in order to make
them tastier, the inclusion of wheat flakes, nuts
and other cereal ingredients contributes to their
healthier image. Conversely, bar the specialist
slimming or sports products, these bars are no
longer viewed as too "saintly" to be enjoyed as a
snack. Such cross-category marketing is largely
possible at modern retail outlets where
consumers have direct access to the category
bays.Prasad Madhusudan
Is a 1st Year MBA student at NMIMS,
Mumbai. He has worked for Deloitte
in the IT sector. His interests are
music, singing & painting. He is
planning to take up Marketing as his
Majors.
Author
“Brands are not trying to take on the well-entrenched category leaders directly but are instead broadening the domain within which their brand plays”
Blurring Food Categories
Multiple positioning across segments
TRENDZ
8 | Buzz - The Markazine | Jun 2011 9 | Buzz - The Markazine | Jun 2011
Ferrero’s non chocolate based snack
Britannia’s Choco Decker
Call it the two-in-one phenomenon; brands are
blurring food category boundaries by positioning
their products to be relevant in multiple categories.
Companies are using innovations, packaging
changes and cross-category placements to extend
the same product to different categories. Brands are
not trying to take on the well-entrenched category
leaders directly but are instead broadening the
domain within which their brand plays. Changing
lifestyles and increased overseas travel has
introduced new flavors and textures into the Indian
palate. And brand extensions are catering to this
need. Everyone is trying to solve the dichotomy of
taste and health today.
Biscuit OR Chocolate ?
Nestlé and Lindt are among the top confectionery
players who have blurred the distinction between
chocolate and biscuits by launching biscuit products
of their own. Nestlé has recently sought to expand its
Smarties brand and gave it a boost by launching
Smarties cookies. Ferrero also launched its first non-
chocolate-based snack under the Kinder brand in the
form of Kinder Happy Hippo long back in
2002. This is made up of a hippo-shaped
wafer shell which is filled with hazelnut and
.
Snack Bar OR Chocolate?
Snack bars typically compete with chocolate
bars by positioning themselves as a tasty but
healthy alternative. This is the case across all
sectors including granola bars, which focus on
health and naturalness; energy bars, which
focus on functionality; and breakfast bars,
which play on the link with breakfast cereals.
This is also the case with other snack bars,
including sesame seed bars in Eastern
milk cream
Europe, and fruit bars in the UK and the US.
Even though snack bars are increasingly
covered in sugar and chocolate in order to make
them tastier, the inclusion of wheat flakes, nuts
and other cereal ingredients contributes to their
healthier image. Conversely, bar the specialist
slimming or sports products, these bars are no
longer viewed as too "saintly" to be enjoyed as a
snack. Such cross-category marketing is largely
possible at modern retail outlets where
consumers have direct access to the category
bays.Prasad Madhusudan
Is a 1st Year MBA student at NMIMS,
Mumbai. He has worked for Deloitte
in the IT sector. His interests are
music, singing & painting. He is
planning to take up Marketing as his
Majors.
Author
“Brands are not trying to take on the well-entrenched category leaders directly but are instead broadening the domain within which their brand plays”
Blurring Food Categories
Multiple positioning across segments
TRENDZ
8 | Buzz - The Markazine | Jun 2011 9 | Buzz - The Markazine | Jun 2011
Ferrero’s non chocolate based snack
Britannia’s Choco Decker
Britannia
The biscuit maker introduced Treat Choco
Decker, a value-added biscuit that enrobes
its Treat jam biscuit with a layer of chocolate,
last year. Choco Decker now has a twin
presence in the biscuit rack and the
confectionery counter. This helps Britannia
expand its consumer group.
Britannia also has baked wheat snack in its
portfolio which is focused on the youth. With
packaging and placement similar to chips,
Britannia plays into the blur yet it is not keen
on limiting itself by branding as chips. It
wants to leverage its core competency of
baking which is considered healthier
Kelloggs
Kellogg India too has leaped into the snack
box from the breakfast bowl. From a category
targeted largely at mothers earlier, Kellogg
shrunk its pack sizes to tap into the evening
snack opportunity for children by placing 10
packs alongside chips in supermarkets
Knorr
Consumer goods giant HUL too launched Knorr
Soupy Noodles lin February 2010. Knorr's
advertising has positioned the product as a
hybrid 7 pm snack combining both, the value of
soup with a product loved by children. Its strategy
is to leverage market leadership in soup to break
into the Nestle Maggi-dominated instant noodles
category. HUL was intelligent enough to target
both the soup and noodle segment by just a
minor innovation. In soupy noodles, Knorr soupy
noodles is a combination of noodles with the
soup masala. Thus without actually producing
any new ingredient it has managed to target both
the soup and noodles segment.
Appy Fizz
This drink by ParleAgro consists carbonated
apple juice. This was a sequel product of Appy
which was clean apple juice. The drink was the
subject of a successful campaign of advertising
at cricket matches in 2007-08. With its
champagne shaped bott le and smar t
advertising, Parle has succeeded in creating a
Fizz in the segment, which is basically the Indian
Youth. Appy Fizz plays both in the Carbonated
drink as well as the fruit based nectar drink
segment. Actually it also competes with the
mocktails due to its champagne like packaging.
Chyawanprash cookies
Take the case of Unibic, which wants you has
combined cookie wi th chyavanprash
A new offering from the Indian arm of Australian
cookie maker Unibic will club the health benefits
of chyawanprash within the reassuring mould of
cookie dough. The brand wants to straddle both
categories. While Unibic still competes with
other cookie makers, the innovation could put it
under the radar of chyawanprash makers such
as Dabur and Emami.
Mc Donalds
McDonalds' Deluxe Wrap is a
snack as well as a meal.
Snacking has been on the rise
for the past decade or so and
“affordability” is one of the
driving forces creating hyper
growth in the category. Affordability is not a new
term, but it is a new factor that food retailers and
foodservice operators are grappling with today.
A combination of snack food items are packaged
in a combination and presented as a meal.
United they are a meal and divided they are
snacks.
Going by the current trends target in multiple
segments with the same product is going to be
come a norm but it is a plus point for the
consumers since they would experience the
benefits of 2 products in one.
10 | Buzz - The Markazine | Jun 2011 11 | Buzz - The Markazine | Jun 2011
Knorr’s Soupy Noodles
McDonald’s Wraps
“Britannia plays into the blur yet it is not keen on limiting itself by branding as chips. It wants to leverage its core competency of baking which is considered healthier”
TRENDZ
Britannia
The biscuit maker introduced Treat Choco
Decker, a value-added biscuit that enrobes
its Treat jam biscuit with a layer of chocolate,
last year. Choco Decker now has a twin
presence in the biscuit rack and the
confectionery counter. This helps Britannia
expand its consumer group.
Britannia also has baked wheat snack in its
portfolio which is focused on the youth. With
packaging and placement similar to chips,
Britannia plays into the blur yet it is not keen
on limiting itself by branding as chips. It
wants to leverage its core competency of
baking which is considered healthier
Kelloggs
Kellogg India too has leaped into the snack
box from the breakfast bowl. From a category
targeted largely at mothers earlier, Kellogg
shrunk its pack sizes to tap into the evening
snack opportunity for children by placing 10
packs alongside chips in supermarkets
Knorr
Consumer goods giant HUL too launched Knorr
Soupy Noodles lin February 2010. Knorr's
advertising has positioned the product as a
hybrid 7 pm snack combining both, the value of
soup with a product loved by children. Its strategy
is to leverage market leadership in soup to break
into the Nestle Maggi-dominated instant noodles
category. HUL was intelligent enough to target
both the soup and noodle segment by just a
minor innovation. In soupy noodles, Knorr soupy
noodles is a combination of noodles with the
soup masala. Thus without actually producing
any new ingredient it has managed to target both
the soup and noodles segment.
Appy Fizz
This drink by ParleAgro consists carbonated
apple juice. This was a sequel product of Appy
which was clean apple juice. The drink was the
subject of a successful campaign of advertising
at cricket matches in 2007-08. With its
champagne shaped bott le and smar t
advertising, Parle has succeeded in creating a
Fizz in the segment, which is basically the Indian
Youth. Appy Fizz plays both in the Carbonated
drink as well as the fruit based nectar drink
segment. Actually it also competes with the
mocktails due to its champagne like packaging.
Chyawanprash cookies
Take the case of Unibic, which wants you has
combined cookie wi th chyavanprash
A new offering from the Indian arm of Australian
cookie maker Unibic will club the health benefits
of chyawanprash within the reassuring mould of
cookie dough. The brand wants to straddle both
categories. While Unibic still competes with
other cookie makers, the innovation could put it
under the radar of chyawanprash makers such
as Dabur and Emami.
Mc Donalds
McDonalds' Deluxe Wrap is a
snack as well as a meal.
Snacking has been on the rise
for the past decade or so and
“affordability” is one of the
driving forces creating hyper
growth in the category. Affordability is not a new
term, but it is a new factor that food retailers and
foodservice operators are grappling with today.
A combination of snack food items are packaged
in a combination and presented as a meal.
United they are a meal and divided they are
snacks.
Going by the current trends target in multiple
segments with the same product is going to be
come a norm but it is a plus point for the
consumers since they would experience the
benefits of 2 products in one.
10 | Buzz - The Markazine | Jun 2011 11 | Buzz - The Markazine | Jun 2011
Knorr’s Soupy Noodles
McDonald’s Wraps
“Britannia plays into the blur yet it is not keen on limiting itself by branding as chips. It wants to leverage its core competency of baking which is considered healthier”
TRENDZ
The High net-worth customer
She vacations twice a year in Europe, doesn't leave
home without her precious LV, swears by her pair of
Jimmy Choos, has countless designer outfits ranging
from the likes of Gucci to D&G and rides in a fancy
chauffeur driven BMW. Who is she? She is the young
hip Indian woman born to a life of luxury. She is a
member of the crème de la crème sitting pretty at the
top end of the wealth spectrum where being filthy rich
is beautiful. For her, luxury is an essential form of self
indulgence. It is this customer that luxury brands like
Cartier, Rolex, LV, DKNY, Chanel and many more are
trying to woo.
Luxury goods
Luxury goods are perceived as rewards for
achievements and as a means to showcase these
achievements to others. They are not governed by the
utility they serve. It is the aura of exclusivity that they
possess which is reflected in the persona of the
owner and makes them extremely desirable.
According to a study by American Express, 'Inside the
Affluent Space', the mindset of the Indian luxury
consumer is a desire to prove that “I've Made It”.
These set of elite individuals are price insensitive and
look for exclusivity above all else. They regard luxury
products as social status symbols and there is
a lot of pride associated with the ownership of
the high end brands. Their purpose for luxury
goods is to lavish themselves in self-
indulgence.
India's lust for luxe
Being one of the fastest growing economies in
the Asia-Pacific region, India is expected to be
the next hub of luxury goods consumption.
The third annual Asia-Pacific Wealth Report
publ ished by Merr i l l Lynch Wealth
Management and Capgemini had estimated
that there were 123,000 millionaires (in dollars)
in India at the end of 2007, up 22.7 per cent
from a year ago.
There was a time when one had to travel abroad
to buy a Gucci or an Armani. However, the
scenario has changed over the last decade with
a plethora of luxury brands flocking India to be a
part of 'The Great Indian Growth Story'.
This occurrence can be explained as a
combination of push and pull. On the one hand,
luxury retailers are spreading their wings to
Zehra LadiwalaIs currently pursuing her MBA at
NMiMS, Mumbai.A Computer
Science Engineer by profession and
a shopoholic by choice. The world of
luxury brands has always fascinated
her and this is what made writing this
article a very enjoyable experience
for her.
ShreyansBorn, brought up and touched 6 ft, all
in Mumbai! Electronics Engineer
from Mumbai University. Worked at
Infosys. Never managed anything
higher than a ‘C’ in a Marketing,
that’s what inspired him to write an
article for BUZZ! ;)
Authors
“The third annual Asia-Pacific Wealth Report published
by Merrill Lynch Wealth Management and Capgemini
had estimated that there were 123,000 millionaires (in
dollars) in India at the end of 2007, up 22.7 per cent from
a year ago.”
Marketing to the High Net Worth
Customer: Trends and Future
12| Buzz - The Markazine | Jun 2011 13| Buzz - The Markazine | Jun 2011
TRENDZ
The High net-worth customer
She vacations twice a year in Europe, doesn't leave
home without her precious LV, swears by her pair of
Jimmy Choos, has countless designer outfits ranging
from the likes of Gucci to D&G and rides in a fancy
chauffeur driven BMW. Who is she? She is the young
hip Indian woman born to a life of luxury. She is a
member of the crème de la crème sitting pretty at the
top end of the wealth spectrum where being filthy rich
is beautiful. For her, luxury is an essential form of self
indulgence. It is this customer that luxury brands like
Cartier, Rolex, LV, DKNY, Chanel and many more are
trying to woo.
Luxury goods
Luxury goods are perceived as rewards for
achievements and as a means to showcase these
achievements to others. They are not governed by the
utility they serve. It is the aura of exclusivity that they
possess which is reflected in the persona of the
owner and makes them extremely desirable.
According to a study by American Express, 'Inside the
Affluent Space', the mindset of the Indian luxury
consumer is a desire to prove that “I've Made It”.
These set of elite individuals are price insensitive and
look for exclusivity above all else. They regard luxury
products as social status symbols and there is
a lot of pride associated with the ownership of
the high end brands. Their purpose for luxury
goods is to lavish themselves in self-
indulgence.
India's lust for luxe
Being one of the fastest growing economies in
the Asia-Pacific region, India is expected to be
the next hub of luxury goods consumption.
The third annual Asia-Pacific Wealth Report
publ ished by Merr i l l Lynch Wealth
Management and Capgemini had estimated
that there were 123,000 millionaires (in dollars)
in India at the end of 2007, up 22.7 per cent
from a year ago.
There was a time when one had to travel abroad
to buy a Gucci or an Armani. However, the
scenario has changed over the last decade with
a plethora of luxury brands flocking India to be a
part of 'The Great Indian Growth Story'.
This occurrence can be explained as a
combination of push and pull. On the one hand,
luxury retailers are spreading their wings to
Zehra LadiwalaIs currently pursuing her MBA at
NMiMS, Mumbai.A Computer
Science Engineer by profession and
a shopoholic by choice. The world of
luxury brands has always fascinated
her and this is what made writing this
article a very enjoyable experience
for her.
ShreyansBorn, brought up and touched 6 ft, all
in Mumbai! Electronics Engineer
from Mumbai University. Worked at
Infosys. Never managed anything
higher than a ‘C’ in a Marketing,
that’s what inspired him to write an
article for BUZZ! ;)
Authors
“The third annual Asia-Pacific Wealth Report published
by Merrill Lynch Wealth Management and Capgemini
had estimated that there were 123,000 millionaires (in
dollars) in India at the end of 2007, up 22.7 per cent from
a year ago.”
Marketing to the High Net Worth
Customer: Trends and Future
12| Buzz - The Markazine | Jun 2011 13| Buzz - The Markazine | Jun 2011
TRENDZ
cent. The market is likely to touch $14.7 bn by
2015.
Trends
Louis Vuitton was the first luxury brand to have
entered the Indian Market in Delhi in 2003. Since
then there has been no looking back with brands
like Boss, Bvlgari, Salvatore Ferragamo, Cavali,
Bogetta Venetta making their presence felt in
India. Luxury brands in India admit that they tend
to bring in the more expensive items in their
inventory knowing the high net worth Indians'
penchant for exclusivity.
A major drawback in India is the absence of high
streets which elsewhere provide symbiotic
clusters of posh retailers like Oxford Street in
London, Fifth Avenue in New York and Avenue
Montaigne in Paris. Thus the Luxury Brand's
initial foray into the Indian market was limited to
five star hotels' shopping arcades due to lack of
decent luxury retail infrastructure in the country.
Today, the trend of luxury retailing has now
shifted towards Luxury Malls like Emporio and
the year old Palladium which have become the
most preferred retail destinations for
international players.
A luxury retail outlet in a five star hotel is a part of
the overall hotel experience, whereas a luxury
mall as an experience is specific to shopping.
Physically, in the look and feel there is hardly
much difference in the stores, however the
overall ambience in a luxury mall is more
shopping focused. These destinations attract the
right kind of potential consumers which luxury
brands need for the growth of their business.
Emporio houses 74 International luxury brands
while Palladium has 65 high-end brands.
However, there is still some ground to be covered
in retailing from luxury malls. In a bid to offset
the exorbitant rates that mall developers charge
for renting the retail space in a luxury mall they
need to attract more consumers who visit the
store with the intention of buying rather than
those who just visit to get a feel of the brand.
Challenges
With most western markets nearing saturation,
the world is looking to the East and India offers
enormous potential for the luxury market along
with countries like China.
This opportunity comes with a pinch of salt as
does everything in our country. Some of the
major challenges faced by luxury brands include
the scattered nature of target population (high
cost of reach), lack of credible real estate
options, and underdeveloped back end
infrastructure like warehouses, FDI regulations
and high import duties. The biggest challenge
however, is to find a proper foothold in the
Indian retail space, already saturated with
modestly-priced, indigenous products, which
India because their home markets are no
longer growing as fast; push has come to
shove. On the other hand, there is every
reason to believe that India will take off. The
rise in disposable income, coupled with
growing brand consciousness of the urban
elite and increased global exposure has led
to a spurt in the demand for luxury goods.
The luxury goods market in India is currently
sized at $4.76 bn and is growing at a
compounded annual growth rate of 25 per
“A major drawback in India is the absence of high
streets which elsewhere provide symbiotic clusters of
posh retailers like Oxford Street in London, Fifth Avenue
in New York and Avenue Montaigne in Paris.”
14| Buzz - The Markazine | Jun 2011 15| Buzz - The Markazine | Jun 2011
Luxury Mall, New Delhi
Buggati Veron - World’s fastest car
A Jimmy Choo Boutigue
TRENDZ
cent. The market is likely to touch $14.7 bn by
2015.
Trends
Louis Vuitton was the first luxury brand to have
entered the Indian Market in Delhi in 2003. Since
then there has been no looking back with brands
like Boss, Bvlgari, Salvatore Ferragamo, Cavali,
Bogetta Venetta making their presence felt in
India. Luxury brands in India admit that they tend
to bring in the more expensive items in their
inventory knowing the high net worth Indians'
penchant for exclusivity.
A major drawback in India is the absence of high
streets which elsewhere provide symbiotic
clusters of posh retailers like Oxford Street in
London, Fifth Avenue in New York and Avenue
Montaigne in Paris. Thus the Luxury Brand's
initial foray into the Indian market was limited to
five star hotels' shopping arcades due to lack of
decent luxury retail infrastructure in the country.
Today, the trend of luxury retailing has now
shifted towards Luxury Malls like Emporio and
the year old Palladium which have become the
most preferred retail destinations for
international players.
A luxury retail outlet in a five star hotel is a part of
the overall hotel experience, whereas a luxury
mall as an experience is specific to shopping.
Physically, in the look and feel there is hardly
much difference in the stores, however the
overall ambience in a luxury mall is more
shopping focused. These destinations attract the
right kind of potential consumers which luxury
brands need for the growth of their business.
Emporio houses 74 International luxury brands
while Palladium has 65 high-end brands.
However, there is still some ground to be covered
in retailing from luxury malls. In a bid to offset
the exorbitant rates that mall developers charge
for renting the retail space in a luxury mall they
need to attract more consumers who visit the
store with the intention of buying rather than
those who just visit to get a feel of the brand.
Challenges
With most western markets nearing saturation,
the world is looking to the East and India offers
enormous potential for the luxury market along
with countries like China.
This opportunity comes with a pinch of salt as
does everything in our country. Some of the
major challenges faced by luxury brands include
the scattered nature of target population (high
cost of reach), lack of credible real estate
options, and underdeveloped back end
infrastructure like warehouses, FDI regulations
and high import duties. The biggest challenge
however, is to find a proper foothold in the
Indian retail space, already saturated with
modestly-priced, indigenous products, which
India because their home markets are no
longer growing as fast; push has come to
shove. On the other hand, there is every
reason to believe that India will take off. The
rise in disposable income, coupled with
growing brand consciousness of the urban
elite and increased global exposure has led
to a spurt in the demand for luxury goods.
The luxury goods market in India is currently
sized at $4.76 bn and is growing at a
compounded annual growth rate of 25 per
“A major drawback in India is the absence of high
streets which elsewhere provide symbiotic clusters of
posh retailers like Oxford Street in London, Fifth Avenue
in New York and Avenue Montaigne in Paris.”
14| Buzz - The Markazine | Jun 2011 15| Buzz - The Markazine | Jun 2011
Luxury Mall, New Delhi
Buggati Veron - World’s fastest car
A Jimmy Choo Boutigue
TRENDZ
Marketing to the Global Desi
In order to succeed in India, luxury brands need
to localise their marketing strategies. This goes
further than just putting an Indian print on a bag
or collaborating with a local celebrity. India
houses a variety of cultures, languages, festivals
and tastes. So, it is imperative to understand the
difference between the flamboyant nature of a
Punjabi customer and the more reserved nature
of a Gujarati, and speaking to each of them in the
specific cultural register that they respond to.
Those brands who are willing to better
understand and connect with the local Indian
consumer will be the ones who are most
successful.
For example, luxury brand Montblanc — which
successfully operates nineteen retail points
across first, second and third tier cities in India —
has regionalised all their marketing material.
Brands like Louis Vuitton and Rolls Royce have
also localised their approaches, identifying
important events and celebrations amongst
potential clients and arriving with personalised
gifts or a surprise car service for the occasion.
Louis Vuitton had readied a worldwide Diwali-
themed splash for their stores last year; Swiss
watchmaker Audemars Piguet unveiled a Rs. 2.1-
crore ($472,000) gift idea during Diwali. Very
recently, the world's most expensive car, the
Bugatti Veyron 16.4 Grand Sport, with a price tag
of over Rs16 crore has debuted in India in the
Diwali run-up.
What these players also need to understand is
that a sale cannot be the final point of their
lexicon. It should be the beginning of their
relationship with the consumer just as the luxury
brands' affair with India has also just begun.
It is an established fact that every Indian now
wants to own products that inspire awe and envy.
But will India's luxury malls be able to match up to
the luxury malls of the world making it a coveted
luxury shopping destination? Only time will tell.
can prove to be a Herculean task for these
premium product companies.
Also, the customer segment being targeted
by international luxury brands consists of
frequent international travellers who
overwhelmingly prefer the experience of
purchasing Western luxury goods abroad,
where brands offer them wider choice, better
service and more competitive pricing than
what's currently available inside India. So
why should they buy a Cartier here, when
they can get it for much less on their travels?
“In order to succeed in India, luxury brands need to
localise their marketing strategies. This goes further
than just putting an Indian print on a bag or
collaborating with a local celebrity.”
16| Buzz - The Markazine | Jun 2011 17| Buzz - The Markazine | Jun 2011
Palladium Mall, Mumbai
TRENDZ
Marketing to the Global Desi
In order to succeed in India, luxury brands need
to localise their marketing strategies. This goes
further than just putting an Indian print on a bag
or collaborating with a local celebrity. India
houses a variety of cultures, languages, festivals
and tastes. So, it is imperative to understand the
difference between the flamboyant nature of a
Punjabi customer and the more reserved nature
of a Gujarati, and speaking to each of them in the
specific cultural register that they respond to.
Those brands who are willing to better
understand and connect with the local Indian
consumer will be the ones who are most
successful.
For example, luxury brand Montblanc — which
successfully operates nineteen retail points
across first, second and third tier cities in India —
has regionalised all their marketing material.
Brands like Louis Vuitton and Rolls Royce have
also localised their approaches, identifying
important events and celebrations amongst
potential clients and arriving with personalised
gifts or a surprise car service for the occasion.
Louis Vuitton had readied a worldwide Diwali-
themed splash for their stores last year; Swiss
watchmaker Audemars Piguet unveiled a Rs. 2.1-
crore ($472,000) gift idea during Diwali. Very
recently, the world's most expensive car, the
Bugatti Veyron 16.4 Grand Sport, with a price tag
of over Rs16 crore has debuted in India in the
Diwali run-up.
What these players also need to understand is
that a sale cannot be the final point of their
lexicon. It should be the beginning of their
relationship with the consumer just as the luxury
brands' affair with India has also just begun.
It is an established fact that every Indian now
wants to own products that inspire awe and envy.
But will India's luxury malls be able to match up to
the luxury malls of the world making it a coveted
luxury shopping destination? Only time will tell.
can prove to be a Herculean task for these
premium product companies.
Also, the customer segment being targeted
by international luxury brands consists of
frequent international travellers who
overwhelmingly prefer the experience of
purchasing Western luxury goods abroad,
where brands offer them wider choice, better
service and more competitive pricing than
what's currently available inside India. So
why should they buy a Cartier here, when
they can get it for much less on their travels?
“In order to succeed in India, luxury brands need to
localise their marketing strategies. This goes further
than just putting an Indian print on a bag or
collaborating with a local celebrity.”
16| Buzz - The Markazine | Jun 2011 17| Buzz - The Markazine | Jun 2011
Palladium Mall, Mumbai
TRENDZ
Inception - the idea or phenomenon of getting into an
individual's brain via his dreams, and compelling him
to do your bidding. Infiltrate his dreams as he sleeps
under the starry skies and by the time he realizes he's
losing something, it's done, and he wakes up to
nothingness! Know his deepest secrets or mould his
thoughts so as to get around the hurdles of awake-
hood. But what if this very esoteric action was used
by say, the sales manager of a soft drink MNC, or
maybe a high-end shoe maker? What if they could
penetrate our defenses, knowing the way someone's
line of thought progresses in, and then manipulate all
of that to make him buy their product. Illegal? Well,
that's an issue which is too far off to discuss in the
absurdity of the moment. But, thinking like a
marketer, it's…WOW!!
Let's bring the concept two notches down, and what
we have is Neuro-marketing.
Wikipedia defines neuro-marketing as 'a new field of
marketing that studies consumers' sensorimotor,
cognitive, and affective response to marketing
stimuli. Researchers use technologies such as
functional magnetic resonance imaging (fMRI) to
measure changes in activity in parts of the brain,
electroencephalography (EEG) to measure activity in
specific regional spectra of the brain
response, and/or sensors to measure
changes in one's physiological state (heart
rate, respiratory rate, galvanic skin response)
to learn why consumers make the decisions
they do, and what part of the brain is telling
them to do it.'
The natural question though is-why neuro-
marketing? Because people rarely say what
they think when they are asked about what
they 'think' in response to a certain question.
I can make you read this!
You are not reading this sentence because of
the title or because you are interested in what is
written on the next page, but maybe because
there's something about this picture.
Why?
Because the picture is eliciting some kind of
emotional response in you, your eyes are being
drawn to it, and you choose to read this story to
find out what the heck it's all about.
And this is what this article is all about-Neuro-
marketing!
Many companies have already recognized the
potential neuro-marketing offers and are using it
to gain a competitive edge. A fine example of this
is the American restaurant chain Five Guys.
Let's discover what makes them tick and how!
Keep things simple-We help you
choose
Five Guys has a minimalist menu. It is totally
focused on one entree, the hamburger, and one
side dish, french fries. One alternate entree, a
Kushal MehtaIs currently pursuing his MBA at
NMIMS, Mumbai, with a Majors in
Marketing. He has completed his
B . T e c h i n E l e c t r o n i c s &
Communication Engineering from
STCET, Kolkata. He is a music buff
and ardent football fan, and takes
keen interest in reading too.
Rachita BehlIs currently pursuing her MBA in HR
from NMIMS, Mumbai. She did her
Engineering from VNR VJIET,
Hyderabad. Her passion rests in the
world of literature and she is an avid
reader.
Nandini KapurIs currently pursuing MBA in
Marketing from NMiMS,Mumbai .
She has done her B.Tech. in
Electronics & Communications from
Jaypee University of Information
Technology, Solan, She enjoys
making candles and is fascinated by
the traditional Japanese art of paper
folding - Origami..
From NJM’s Cradle
“What if they could penetrate our defenses, knowing the way someone's line of thought progresses in, and then manipulate all of that to make him buy their product. Illegal?”
IT’S ALL IN THE MIND
Neuro-marketing
COVER STORY
18| Buzz - The Markazine | Jun 2011 19| Buzz - The Markazine | Jun 2011
Inception - the idea or phenomenon of getting into an
individual's brain via his dreams, and compelling him
to do your bidding. Infiltrate his dreams as he sleeps
under the starry skies and by the time he realizes he's
losing something, it's done, and he wakes up to
nothingness! Know his deepest secrets or mould his
thoughts so as to get around the hurdles of awake-
hood. But what if this very esoteric action was used
by say, the sales manager of a soft drink MNC, or
maybe a high-end shoe maker? What if they could
penetrate our defenses, knowing the way someone's
line of thought progresses in, and then manipulate all
of that to make him buy their product. Illegal? Well,
that's an issue which is too far off to discuss in the
absurdity of the moment. But, thinking like a
marketer, it's…WOW!!
Let's bring the concept two notches down, and what
we have is Neuro-marketing.
Wikipedia defines neuro-marketing as 'a new field of
marketing that studies consumers' sensorimotor,
cognitive, and affective response to marketing
stimuli. Researchers use technologies such as
functional magnetic resonance imaging (fMRI) to
measure changes in activity in parts of the brain,
electroencephalography (EEG) to measure activity in
specific regional spectra of the brain
response, and/or sensors to measure
changes in one's physiological state (heart
rate, respiratory rate, galvanic skin response)
to learn why consumers make the decisions
they do, and what part of the brain is telling
them to do it.'
The natural question though is-why neuro-
marketing? Because people rarely say what
they think when they are asked about what
they 'think' in response to a certain question.
I can make you read this!
You are not reading this sentence because of
the title or because you are interested in what is
written on the next page, but maybe because
there's something about this picture.
Why?
Because the picture is eliciting some kind of
emotional response in you, your eyes are being
drawn to it, and you choose to read this story to
find out what the heck it's all about.
And this is what this article is all about-Neuro-
marketing!
Many companies have already recognized the
potential neuro-marketing offers and are using it
to gain a competitive edge. A fine example of this
is the American restaurant chain Five Guys.
Let's discover what makes them tick and how!
Keep things simple-We help you
choose
Five Guys has a minimalist menu. It is totally
focused on one entree, the hamburger, and one
side dish, french fries. One alternate entree, a
Kushal MehtaIs currently pursuing his MBA at
NMIMS, Mumbai, with a Majors in
Marketing. He has completed his
B . T e c h i n E l e c t r o n i c s &
Communication Engineering from
STCET, Kolkata. He is a music buff
and ardent football fan, and takes
keen interest in reading too.
Rachita BehlIs currently pursuing her MBA in HR
from NMIMS, Mumbai. She did her
Engineering from VNR VJIET,
Hyderabad. Her passion rests in the
world of literature and she is an avid
reader.
Nandini KapurIs currently pursuing MBA in
Marketing from NMiMS,Mumbai .
She has done her B.Tech. in
Electronics & Communications from
Jaypee University of Information
Technology, Solan, She enjoys
making candles and is fascinated by
the traditional Japanese art of paper
folding - Origami..
From NJM’s Cradle
“What if they could penetrate our defenses, knowing the way someone's line of thought progresses in, and then manipulate all of that to make him buy their product. Illegal?”
IT’S ALL IN THE MIND
Neuro-marketing
COVER STORY
18| Buzz - The Markazine | Jun 2011 19| Buzz - The Markazine | Jun 2011
hot dog, is also available. The principle of
neuro-marketing at work here is that
“customers presented with fewer choices in
a retail environment buy greater quantities of
product.”
But how is the menu so simple? Lack of
variety? Nay. They give away all their toppings
for FREE! This reduces the “paying pain” of
customers and strengthens their value
proposition.
Because others say so
Walls screaming out loud “The burgers at Five
Guys are awesome!” A third of their paper
takeout menus covered up with reviews. The
principle at work- Social Proof. A theory that
suggests we base our response to a situation
based on how others react to it. By the time you
start munching on your food, your expectations
would already have been set. Even if you had
doubts when you walked in through the door, all
those burger lovers in other places cannot be
wrong, right?
Appeal to the senses
These guys go beyond the taste buds. Rightly so.
Half of the beauty of food is in its smell. Look even
beyond that. Five Guys appeals to the visual
senses too! To show that they use only fresh
potatoes, they line up bags of the spuds where
the customers queue up to order. As they say a
picture is worth a thousand words! It drives the
point home far more effectively by going straight
to our subconscious.
Whether Five Guys consulted any neuroscientist,
we can't say. But one thing's for sure. What we
see here is a perfect union of marketing and
neuroscience aka neuro-marketing! And clearly,
it works! So it would not be wrong to assume that
as time passes, and economic and financial
pressure increases, more and more companies
will turn to neuro-marketing. Behavioral science
will soon be a major part of market research.
After all how many times do you get a chance like
this one to convert a consumer's “mmm-good”
into “mmm-better”?
Lessons for marketers? To strengthen your
brand, appeal to the customers' reptilian or the
old brain, which guides all buying decisions. It all
comes down to who triggers the first reptilian
action. So what does this brain respond to?
Emotions that excite all the senses, and for a
customer, the 4Ps are his 'senses'. Visual
orientation, conveying tangible benefits,
memorable beginnings and endings that
influence the entire experience, minimizing the
gain vs pain tradeoff are some of the ways to
achieve that.
Like everything else, it is the beginning and the
ending that influence the entire experience.
However, being at its nascent stage, Neuro-
marketing brings in quite a lot of apprehension.
After all, Inception is the idea or phenomenon of
getting into an individual's brain via his dreams,
and compelling him to do your bidding. So how
ethical is this entire process of reading the
consumer's mind? Knowing what drives a
consumer and doing just that to make him
choose your product over the others? We might
condone such an act if it is harmful. But who
shalt be thy judge? Who shalt stop and tell thy
that thou dost wrong?
We all know that the warning labels on cigarettes
make smokers want to smoke more. So where is
the limit? Curiously, the seed is already sown.
20| Buzz - The Markazine | Jun 2011 21| Buzz - The Markazine | Jun 2011
“
”
Like everything else, it is the beginning and the ending that influence the entire experience.
COVER STORY
Jerry Murrell, Five Guys Burgers and Fries
hot dog, is also available. The principle of
neuro-marketing at work here is that
“customers presented with fewer choices in
a retail environment buy greater quantities of
product.”
But how is the menu so simple? Lack of
variety? Nay. They give away all their toppings
for FREE! This reduces the “paying pain” of
customers and strengthens their value
proposition.
Because others say so
Walls screaming out loud “The burgers at Five
Guys are awesome!” A third of their paper
takeout menus covered up with reviews. The
principle at work- Social Proof. A theory that
suggests we base our response to a situation
based on how others react to it. By the time you
start munching on your food, your expectations
would already have been set. Even if you had
doubts when you walked in through the door, all
those burger lovers in other places cannot be
wrong, right?
Appeal to the senses
These guys go beyond the taste buds. Rightly so.
Half of the beauty of food is in its smell. Look even
beyond that. Five Guys appeals to the visual
senses too! To show that they use only fresh
potatoes, they line up bags of the spuds where
the customers queue up to order. As they say a
picture is worth a thousand words! It drives the
point home far more effectively by going straight
to our subconscious.
Whether Five Guys consulted any neuroscientist,
we can't say. But one thing's for sure. What we
see here is a perfect union of marketing and
neuroscience aka neuro-marketing! And clearly,
it works! So it would not be wrong to assume that
as time passes, and economic and financial
pressure increases, more and more companies
will turn to neuro-marketing. Behavioral science
will soon be a major part of market research.
After all how many times do you get a chance like
this one to convert a consumer's “mmm-good”
into “mmm-better”?
Lessons for marketers? To strengthen your
brand, appeal to the customers' reptilian or the
old brain, which guides all buying decisions. It all
comes down to who triggers the first reptilian
action. So what does this brain respond to?
Emotions that excite all the senses, and for a
customer, the 4Ps are his 'senses'. Visual
orientation, conveying tangible benefits,
memorable beginnings and endings that
influence the entire experience, minimizing the
gain vs pain tradeoff are some of the ways to
achieve that.
Like everything else, it is the beginning and the
ending that influence the entire experience.
However, being at its nascent stage, Neuro-
marketing brings in quite a lot of apprehension.
After all, Inception is the idea or phenomenon of
getting into an individual's brain via his dreams,
and compelling him to do your bidding. So how
ethical is this entire process of reading the
consumer's mind? Knowing what drives a
consumer and doing just that to make him
choose your product over the others? We might
condone such an act if it is harmful. But who
shalt be thy judge? Who shalt stop and tell thy
that thou dost wrong?
We all know that the warning labels on cigarettes
make smokers want to smoke more. So where is
the limit? Curiously, the seed is already sown.
20| Buzz - The Markazine | Jun 2011 21| Buzz - The Markazine | Jun 2011
“
”
Like everything else, it is the beginning and the ending that influence the entire experience.
COVER STORY
Jerry Murrell, Five Guys Burgers and Fries
Organised coffee retailing is a niche but growing
segment in India which is now worth close to USD
441 million with around 1500 cafes is 150 cities. The
coffee retail market is expected to grow at an annual
rate of over 40%.
At present, Indian sips coffee from players like Café
Coffee Day, Barista, Costa Coffee, Gloria Jeans,
Qwiky's, Café Nescafe and Coffee Bean. Bang
alore based chain Café Coffee
Day is currently the leader with
1,090 cafés and kiosks, and
15,000 vending machines.
Barista, owned by Italy-based
Lavazza, is second, followed
by UK-based chain Costa Coffee.
Starbucks, an international coffee caf
é chain had recently signed a non-binding
Memorandum of Understanding (MoU) with Tata
Coffee Ltd for sourcing coffee and for retail business
in India. Starbucks will set up its storesin luxurious 5
star hotels of Tata.
In fact few more international coffee chains are
preparing to enter India. The UK's Coffee Republic,
Malta's Cafe Jubilee and Australia's Coffee Club
Group are looking for franchise partners in India.
Dunkin donuts had already announced to open 500
stores in the next 15 years. Recent survey says that
doing business in India has become more congenial
now which is one of the major reasons that
these companies can't ignore India now
(Exhibit 3).
By recognising the fast emerging “coffee and
hangout” culture in India Starbuckshad tried
to enter Indian shores in the past by
collaboration with the
Group, Anil Ambani Group and Jubilant Foods
Ltd. But none of these attempts fructified.So
Entrance of Starbucks in collaboration with
Tata is not shocking news for anyone.
According to industry estimates, there is
scope for another 5,400 outlets strategically
located close to offices, colleges and
shopping malls. Every player is already
planning to expand over the next two-three
Kishore Biyani's Future
years and penetrate tier II and tier III cities.
Does the entrance of Starbucks means that the
existing players should wake up and smell the
coffee?Competition is already intense among
existing chains and they are trying hard to woo
consumers but with the arrival of Starbucks the
intensity of this competition will increase
further.
Barista and CCD have a first mover's advantage
as they have already customized their menu for
the Indian palette.The existing coffee chains
have targeted the premium segment youth, as
they realized that it wasn't only coffee that their
target segment was looking for, but also for a
place to hang around comfortably, where they
could be themselves and do whatever they
wanted, such as play games, read books, listen
to music, enjoy arts, surf the Net or simply
chilling out. Starbucks with its vast experience of
h a n d l i n g c o n s u m e r s f ro m d i f fe r e n t
geographical regions would certainly have a
competitive edge here. It has indicated that it is
going to position itself as an elite brand and
Sarika Sinhaa student of Goa institute of
Management, Goa
Ms. Sinha has done B.Tech in textile
technology from UPTTI, Kanpur.
Before joining GIM, she has worked
in Supply Chain Management at
Raymond ltd.She has worked as an
editor of college annual journal
“Fibre to Finish”.
Chandramouli Muthiahis currently pursuing MBA from Goa
institute of Management, Goa
Mr Muthiah has done his Bachelors
in Arts and has worked in Marketing
and Sales. He has an interest in
cricket and has played for Karnataka
State cricket team.
Authors
“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential”
Howard Schultz, Chairman, Starbucks
NamasteStarbucks!!!
première
Calendar year Quantity in (MT) 2004 75,000
2005 80,200
2006 85,000
2007 90,000 2008 94,400
Exibit 1 :Coffee Consumption in India
22| Buzz - The Markazine | Jun 2011 23| Buzz - The Markazine | Jun 2011
Organised coffee retailing is a niche but growing
segment in India which is now worth close to USD
441 million with around 1500 cafes is 150 cities. The
coffee retail market is expected to grow at an annual
rate of over 40%.
At present, Indian sips coffee from players like Café
Coffee Day, Barista, Costa Coffee, Gloria Jeans,
Qwiky's, Café Nescafe and Coffee Bean. Bang
alore based chain Café Coffee
Day is currently the leader with
1,090 cafés and kiosks, and
15,000 vending machines.
Barista, owned by Italy-based
Lavazza, is second, followed
by UK-based chain Costa Coffee.
Starbucks, an international coffee caf
é chain had recently signed a non-binding
Memorandum of Understanding (MoU) with Tata
Coffee Ltd for sourcing coffee and for retail business
in India. Starbucks will set up its storesin luxurious 5
star hotels of Tata.
In fact few more international coffee chains are
preparing to enter India. The UK's Coffee Republic,
Malta's Cafe Jubilee and Australia's Coffee Club
Group are looking for franchise partners in India.
Dunkin donuts had already announced to open 500
stores in the next 15 years. Recent survey says that
doing business in India has become more congenial
now which is one of the major reasons that
these companies can't ignore India now
(Exhibit 3).
By recognising the fast emerging “coffee and
hangout” culture in India Starbuckshad tried
to enter Indian shores in the past by
collaboration with the
Group, Anil Ambani Group and Jubilant Foods
Ltd. But none of these attempts fructified.So
Entrance of Starbucks in collaboration with
Tata is not shocking news for anyone.
According to industry estimates, there is
scope for another 5,400 outlets strategically
located close to offices, colleges and
shopping malls. Every player is already
planning to expand over the next two-three
Kishore Biyani's Future
years and penetrate tier II and tier III cities.
Does the entrance of Starbucks means that the
existing players should wake up and smell the
coffee?Competition is already intense among
existing chains and they are trying hard to woo
consumers but with the arrival of Starbucks the
intensity of this competition will increase
further.
Barista and CCD have a first mover's advantage
as they have already customized their menu for
the Indian palette.The existing coffee chains
have targeted the premium segment youth, as
they realized that it wasn't only coffee that their
target segment was looking for, but also for a
place to hang around comfortably, where they
could be themselves and do whatever they
wanted, such as play games, read books, listen
to music, enjoy arts, surf the Net or simply
chilling out. Starbucks with its vast experience of
h a n d l i n g c o n s u m e r s f ro m d i f fe r e n t
geographical regions would certainly have a
competitive edge here. It has indicated that it is
going to position itself as an elite brand and
Sarika Sinhaa student of Goa institute of
Management, Goa
Ms. Sinha has done B.Tech in textile
technology from UPTTI, Kanpur.
Before joining GIM, she has worked
in Supply Chain Management at
Raymond ltd.She has worked as an
editor of college annual journal
“Fibre to Finish”.
Chandramouli Muthiahis currently pursuing MBA from Goa
institute of Management, Goa
Mr Muthiah has done his Bachelors
in Arts and has worked in Marketing
and Sales. He has an interest in
cricket and has played for Karnataka
State cricket team.
Authors
“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential”
Howard Schultz, Chairman, Starbucks
NamasteStarbucks!!!
première
Calendar year Quantity in (MT) 2004 75,000
2005 80,200
2006 85,000
2007 90,000 2008 94,400
Exibit 1 :Coffee Consumption in India
22| Buzz - The Markazine | Jun 2011 23| Buzz - The Markazine | Jun 2011
intense competition it seems it would
become more service-led than price-led
differentiation in the future.
To combat competition, “India is one of
the most dynamic markets in the world
with a diverseculture and tremendous
potential. This MoU is the first step in our
entry to India” said Howard Schultz,
Chairman,Starbucks.
“We welcome the entry of Starbucks into
India. It will certainly add to the excitement of the
culture of cafes here and we are looking forward
to an expanded market going forward,” said Venu
Madhav, COO, CCD
CCD is already looking to launch another 200
cafes to add to its presence on highways and
inside malls and corporate offices. Italso plans
to open no. of lounges in major citiesas well as
Coffee Day Squares in major cities. These
lounges will target mainly young professionals
who grew up on CCD. Similarly, as a part of
differentiating its services, Barista is already
offering Italian food at its outlets and also
entered into tie – ups with Planet M, Crossword
and Ebony to set up Espresso Corners at these
places. Also to expand its reach, the company
has opened outlets in theatres, offices, airports
and in hotels.
Indeed Starbucks entry will stimulate growth in
the coffee and hangout culture. Everyone will try
to deliver the best to be the consumer's first
choice. The price sensitive nature of the Indian
market will be a challenge for Starbucks.
Retaining performing employees for all chains
will be another problem since the well versed
hands in this sector would love to join
international brands.
Though none of the companies are willing to
admit the tension with the entry of such a large
player, all are keen to know what formats
Starbucks will bring to India and what will be
their strategies. Its success in the long run will
however depend on how well it is able to adapt to
Indian taste buds.Some coffee chains might
decide to sell their stakes to Starbucks which will
further strengthen its positioning in India.
India is a country of equal opportunities and
Indians are known for their warm welcome to
MNC if company is willing to offer the products in
“Indian” style.It's sure that Starbuckspresence
in the country would improve the café culture in
the country. Amidst all commotion coffee
connoisseurs will certainly enjoy their fine cup of
coffee.
Indians fast growing appet i te for
extravagance might work well for them.
With the entry of Starbucks the existing
chains has to focus a lot on aggressive
expansion plans, innovative marketing
strategies and variety in products offered.
Coffee and conversations often lead to food
so by offering variety of food (healthy snacks
also)companies can dig deeper in consumer
pocket . A l so by se l l ing d i f fe ren t
merchandises these companies gives
consumer an opportunity to take home a part
of his unforgettable experience. Due to
“We welcome the entry of Starbucks into India. It will certainly add to the excitement of the culture of cafes here and we are looking forward to an expanded market going forward”
Venu Madhav, COO, CCD.
Exibit 2 : Age wise precentage coffee consumption
24| Buzz - The Markazine | Jun 2011 25| Buzz - The Markazine | Jun 2011
Exibit 3 : Pestel Analysis
Political
Stable govt has created better working
environment for industries
High tolerance towards f o r e i g n
countries and encourage foreign investments
proposed changes in FDI structure in
various sectors
Economical
india is no. 1 in consumer confidence
index 2010
Less affected by economic downturn
because of vast domestic consumption
approx 59% population is above low
income line *
Sociocultural
younger polulation with median age
25.9 yrs.
Rising coffee culture and café
considered as place for socialising and
hangout
Improved living standards of people
Increased brand consciousness will
help Starbucks as coffee is considered as an
elite beverage
Technological
Improved quality of Indian coffee as
80% of coffee is exported
Easy availability of Low cost of labour
!
!
!
!
!
!
!
!
!
!
!
!
première
intense competition it seems it would
become more service-led than price-led
differentiation in the future.
To combat competition, “India is one of
the most dynamic markets in the world
with a diverseculture and tremendous
potential. This MoU is the first step in our
entry to India” said Howard Schultz,
Chairman,Starbucks.
“We welcome the entry of Starbucks into
India. It will certainly add to the excitement of the
culture of cafes here and we are looking forward
to an expanded market going forward,” said Venu
Madhav, COO, CCD
CCD is already looking to launch another 200
cafes to add to its presence on highways and
inside malls and corporate offices. Italso plans
to open no. of lounges in major citiesas well as
Coffee Day Squares in major cities. These
lounges will target mainly young professionals
who grew up on CCD. Similarly, as a part of
differentiating its services, Barista is already
offering Italian food at its outlets and also
entered into tie – ups with Planet M, Crossword
and Ebony to set up Espresso Corners at these
places. Also to expand its reach, the company
has opened outlets in theatres, offices, airports
and in hotels.
Indeed Starbucks entry will stimulate growth in
the coffee and hangout culture. Everyone will try
to deliver the best to be the consumer's first
choice. The price sensitive nature of the Indian
market will be a challenge for Starbucks.
Retaining performing employees for all chains
will be another problem since the well versed
hands in this sector would love to join
international brands.
Though none of the companies are willing to
admit the tension with the entry of such a large
player, all are keen to know what formats
Starbucks will bring to India and what will be
their strategies. Its success in the long run will
however depend on how well it is able to adapt to
Indian taste buds.Some coffee chains might
decide to sell their stakes to Starbucks which will
further strengthen its positioning in India.
India is a country of equal opportunities and
Indians are known for their warm welcome to
MNC if company is willing to offer the products in
“Indian” style.It's sure that Starbuckspresence
in the country would improve the café culture in
the country. Amidst all commotion coffee
connoisseurs will certainly enjoy their fine cup of
coffee.
Indians fast growing appet i te for
extravagance might work well for them.
With the entry of Starbucks the existing
chains has to focus a lot on aggressive
expansion plans, innovative marketing
strategies and variety in products offered.
Coffee and conversations often lead to food
so by offering variety of food (healthy snacks
also)companies can dig deeper in consumer
pocket . A l so by se l l ing d i f fe ren t
merchandises these companies gives
consumer an opportunity to take home a part
of his unforgettable experience. Due to
“We welcome the entry of Starbucks into India. It will certainly add to the excitement of the culture of cafes here and we are looking forward to an expanded market going forward”
Venu Madhav, COO, CCD.
Exibit 2 : Age wise precentage coffee consumption
24| Buzz - The Markazine | Jun 2011 25| Buzz - The Markazine | Jun 2011
Exibit 3 : Pestel Analysis
Political
Stable govt has created better working
environment for industries
High tolerance towards f o r e i g n
countries and encourage foreign investments
proposed changes in FDI structure in
various sectors
Economical
india is no. 1 in consumer confidence
index 2010
Less affected by economic downturn
because of vast domestic consumption
approx 59% population is above low
income line *
Sociocultural
younger polulation with median age
25.9 yrs.
Rising coffee culture and café
considered as place for socialising and
hangout
Improved living standards of people
Increased brand consciousness will
help Starbucks as coffee is considered as an
elite beverage
Technological
Improved quality of Indian coffee as
80% of coffee is exported
Easy availability of Low cost of labour
!
!
!
!
!
!
!
!
!
!
!
!
première
Evolution
Social marketing originated as a discipline in the
1970s, when Philip Kotler and Gerald Zaltman
comprehended that the same marketing principles
which were used to sell products by different
business organizations could be used to "sell" ideas,
attitudes and behaviors. Kotler and Andreasen
define social marketing as "differing from other areas
of marketing only with respect to the objectives of the
marketer and his or her organization”.
Need for change
The view that marketing can be useful only for the
organizations in the business domain and not for the
ones that are in the areas of development is fast
changing. The area of social marketing gets
prominence and generates a lot of possibilities for
social reformers and development agencies. Many
development organizations and Ngo have adopted
the best management practices of domains like
f i n a n c e o r o p e r a t i o n o r h u m a n
resourcemanagement and have been highly
successful after its implementation. But the
marketing principals have not been majorly applied
by these development agencies or the Ngo barring a
few exceptions.
The same concepts of marketing can be applied to
the area of social issues. Social issues need the kind
of attention as any other product but this is
still neglected. In the purview of the
acceptance and establishment of the social
marketing the idea can be taken forward and
used by many Non- government organizations
to promote their cause and the activities that
they are in. Social marketing when applied to
Ngoand other such social organizations will
help them reach out to a wider population and
establish their credibility and also the cause
that they are working on.
Cause related marketing and
Social Marketing
There is a remarkable difference between the
cause related marketing and social marketing.
The Jago re campaign started by Tata tea was an
example of cause related marketing. Similar is
the Save Tiger campaign promoted by Aircel. The
reason that I make these distinctions is that
these campaigns have had an impact on the
public but the motives were entirely different. If
such campaigns can get the attention and have
an impact there is a huge possibility that the
Akhileshwar Kumar
Is currently pursuing his MBA at the
Institute of Rural Management,
Anand, class of 2012. He has
completed his Engineering from
RGPV Bhopal. He has a keen
interest in working in the
development sector. Initially
associated with a Bhopal based
NGO, he worked on the field for two
months in Samastipur district,
Bihar, where he studied various
themes like migration and
remittance pattern in the village.
Author
“Differing from other areas of marketing only with respect to the objectives of the marketer and his or her organization”
Kotler and Andreasen on Social Marketing
SOCIAL MARKETING
GYAAN
26| Buzz - The Markazine | Jun 2011 27| Buzz - The Markazine | Jun 2011
Evolution
Social marketing originated as a discipline in the
1970s, when Philip Kotler and Gerald Zaltman
comprehended that the same marketing principles
which were used to sell products by different
business organizations could be used to "sell" ideas,
attitudes and behaviors. Kotler and Andreasen
define social marketing as "differing from other areas
of marketing only with respect to the objectives of the
marketer and his or her organization”.
Need for change
The view that marketing can be useful only for the
organizations in the business domain and not for the
ones that are in the areas of development is fast
changing. The area of social marketing gets
prominence and generates a lot of possibilities for
social reformers and development agencies. Many
development organizations and Ngo have adopted
the best management practices of domains like
f i n a n c e o r o p e r a t i o n o r h u m a n
resourcemanagement and have been highly
successful after its implementation. But the
marketing principals have not been majorly applied
by these development agencies or the Ngo barring a
few exceptions.
The same concepts of marketing can be applied to
the area of social issues. Social issues need the kind
of attention as any other product but this is
still neglected. In the purview of the
acceptance and establishment of the social
marketing the idea can be taken forward and
used by many Non- government organizations
to promote their cause and the activities that
they are in. Social marketing when applied to
Ngoand other such social organizations will
help them reach out to a wider population and
establish their credibility and also the cause
that they are working on.
Cause related marketing and
Social Marketing
There is a remarkable difference between the
cause related marketing and social marketing.
The Jago re campaign started by Tata tea was an
example of cause related marketing. Similar is
the Save Tiger campaign promoted by Aircel. The
reason that I make these distinctions is that
these campaigns have had an impact on the
public but the motives were entirely different. If
such campaigns can get the attention and have
an impact there is a huge possibility that the
Akhileshwar Kumar
Is currently pursuing his MBA at the
Institute of Rural Management,
Anand, class of 2012. He has
completed his Engineering from
RGPV Bhopal. He has a keen
interest in working in the
development sector. Initially
associated with a Bhopal based
NGO, he worked on the field for two
months in Samastipur district,
Bihar, where he studied various
themes like migration and
remittance pattern in the village.
Author
“Differing from other areas of marketing only with respect to the objectives of the marketer and his or her organization”
Kotler and Andreasen on Social Marketing
SOCIAL MARKETING
GYAAN
26| Buzz - The Markazine | Jun 2011 27| Buzz - The Markazine | Jun 2011
people and cause the necessary change in the
society.
The development organizations and many NGO
work on shoe string budgets. The work that they
do never gets highlighted. Most cannot even
name the biggest NGOs in the country. The lack
of marketing has caused the difference. With
adopting marketing practices not only the cause
that the NGO is working on will get highlighted but
also the NGO will get better recognition. The
recognition will help them generate funds and
eventually help them in promoting the cause.
Thus marketing will go a long way in generating
funds for such agencies working in the
development field.
Various campaigns that have been promoted by
the government agencies like polio eradication
campaign have got adequate recognition. The
processes can also be implemented for many
other causes. Using advertisements specially
designed and other promotional methods to
reach the message to the people will help the
cause find recognition. The recognition will effect
a behavioral change in the public.
Example: Presented here is an example of
how important a social marketing campaign can
be in changing the society for the better.
Product: Adoption
Target population: Childless couples, single
mothers, orphanage homes
Promotion: Advertisements, educating about the
process of adoption, campaigns
Price: Societal benefits (earned)
This kind of societal change has to be brought out
in the open and need to be discussed with people
who are unaware of it. The response that such
issues will generate will be phenomenal. It's
often argued that people act according to what
they hear or see. So if a method like social
marketing can help them hear and see the issues
the actions will follow.
Conclusion
Social marketing needs adequate attention from
many agencies as the developmental
organizations, donor agencies etc. It can be used
as an active method to improve the visibility of
the cause and also the organization which are
struggling to find recognition and therefore
sustainable growth. Promoting social causes by
identifying the right target segment and reaching
out to the people with various marketing and
promotional tools will lead to a desired
behavioral change.
social campaigns can arouse the sentiments
of people and effect a behavioral change
that is intended.
Cause related marketing is often confused
with a kind of social marketing. Though the
companies promote a social cause but the
intention also is to gain brownie points for the
brand from the campaign. I am not criticizing,
the kind of promotions just trying to highlight
the hidden interest which get neglected.
Advantages
Social marketing will provide the necessary
tools for the organizations which intend to
bring a positive change in the society. Using
social marketing methods certain causes
can be better addressed. Marketing can
hugely influence the behavior of a person.
Think about the influence it will have if issues
like child marriage, literacy, health,
infanticide and other such issues are heavily
promoted. The marketing campaigns will go
a long way in influencing the attitudes of
“Cause related marketing is often confused with a
kind of social marketing. Though the companies
promote a social cause but the intention also is to gain
brownie points for the brand from the campaign”
28 | Buzz - The Markazine | Jun 2011 29| Buzz - The Markazine | Jun 2011
GYAAN
people and cause the necessary change in the
society.
The development organizations and many NGO
work on shoe string budgets. The work that they
do never gets highlighted. Most cannot even
name the biggest NGOs in the country. The lack
of marketing has caused the difference. With
adopting marketing practices not only the cause
that the NGO is working on will get highlighted but
also the NGO will get better recognition. The
recognition will help them generate funds and
eventually help them in promoting the cause.
Thus marketing will go a long way in generating
funds for such agencies working in the
development field.
Various campaigns that have been promoted by
the government agencies like polio eradication
campaign have got adequate recognition. The
processes can also be implemented for many
other causes. Using advertisements specially
designed and other promotional methods to
reach the message to the people will help the
cause find recognition. The recognition will effect
a behavioral change in the public.
Example: Presented here is an example of
how important a social marketing campaign can
be in changing the society for the better.
Product: Adoption
Target population: Childless couples, single
mothers, orphanage homes
Promotion: Advertisements, educating about the
process of adoption, campaigns
Price: Societal benefits (earned)
This kind of societal change has to be brought out
in the open and need to be discussed with people
who are unaware of it. The response that such
issues will generate will be phenomenal. It's
often argued that people act according to what
they hear or see. So if a method like social
marketing can help them hear and see the issues
the actions will follow.
Conclusion
Social marketing needs adequate attention from
many agencies as the developmental
organizations, donor agencies etc. It can be used
as an active method to improve the visibility of
the cause and also the organization which are
struggling to find recognition and therefore
sustainable growth. Promoting social causes by
identifying the right target segment and reaching
out to the people with various marketing and
promotional tools will lead to a desired
behavioral change.
social campaigns can arouse the sentiments
of people and effect a behavioral change
that is intended.
Cause related marketing is often confused
with a kind of social marketing. Though the
companies promote a social cause but the
intention also is to gain brownie points for the
brand from the campaign. I am not criticizing,
the kind of promotions just trying to highlight
the hidden interest which get neglected.
Advantages
Social marketing will provide the necessary
tools for the organizations which intend to
bring a positive change in the society. Using
social marketing methods certain causes
can be better addressed. Marketing can
hugely influence the behavior of a person.
Think about the influence it will have if issues
like child marriage, literacy, health,
infanticide and other such issues are heavily
promoted. The marketing campaigns will go
a long way in influencing the attitudes of
“Cause related marketing is often confused with a
kind of social marketing. Though the companies
promote a social cause but the intention also is to gain
brownie points for the brand from the campaign”
28 | Buzz - The Markazine | Jun 2011 29| Buzz - The Markazine | Jun 2011
GYAAN
Divide and rule was the famous strategy used by
Britishers to rule over Indians for decades. Today
marketeers are quite inspired by the saying and are
using it but with a twist divide the work and rule.
Crowdsourcing: if we look at the word and break into
two parts CROWD would be the general public and
SOURCING would be giving out work or delegating
work to others.
In totality, crowdsourcing is the act of outsourcing
tasks, traditionally performed by an employee or
contractor, to an undefined, large group of people or
community (a "crowd"), through an open call.
The answer to effective crowdsourcing may lie
somewhere in the middle of professional expertise
and public opinion. Companies can interpret and
create certain results and then ask the public to
make a choice out of them.
SOME INTERESTING EXAMPLES AND THEIR
VALUABLE INSIGHTS
· Being a movie freak the first example that
crosses my mind is that of the youth favorite JAB WE
MET. The makers of the movie crowdsourced the task
of giving an enticing name to the flick and conducted
popular voting. Three options were given:
1. Ishq Via Bhatinda
2. Jab We Met
3. Punjab Mail
The three alternatives reduced the effort needed to
enter the contest & the participants just had to send
an SMS. The catchy and contemporary Hinglish (a
mix of English and Hindi words) acted as an unshown
trailer depicting 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.
Insight: A flavor of the actual ice cream can be
given subtly through crowdsourcing.
· The most “in” thing of today's times
Facebook has used crowdsourcing since
2008 to create different language versions of
its site. The company claims this method
offers the advantage of providing site versions
that are more compatible with local culture.
Insight: The concept of crowdsourcing has an
inherent advantage that “what is created by
people would enjoy greater acceptability by
them.”
· The most loved cola, Pepsi, launched a
marketing campaign in early 2007 which
allowed consumers to design the look of a Pepsi
can. The winners would receive a $10,000 prize,
and their artwork would be featured on 500
million Pepsi cans around the United States.
Insight: Crowdsourcing brings about customer
Nikita Agarwal
Is currently pursuing her MBA from
N.L.Dalmia Institute of Management
Studies & Research. A Mumbaikar
and a Commerce graduate from
Sydenham College of Commerce &
Economics, she loves writing,
blogging, dancing & listening to
music.
Author
“Crowdsourcing is the act of outsourcing tasks,
traditionally performed by an employee or contractor, to
an undefined, large group of people or community (a
"crowd"), through an open call.”
CROWDSOURCING
30| Buzz - The Markazine | Jun 2011 31| Buzz - The Markazine | Jun 2011
GYAAN
Divide and rule was the famous strategy used by
Britishers to rule over Indians for decades. Today
marketeers are quite inspired by the saying and are
using it but with a twist divide the work and rule.
Crowdsourcing: if we look at the word and break into
two parts CROWD would be the general public and
SOURCING would be giving out work or delegating
work to others.
In totality, crowdsourcing is the act of outsourcing
tasks, traditionally performed by an employee or
contractor, to an undefined, large group of people or
community (a "crowd"), through an open call.
The answer to effective crowdsourcing may lie
somewhere in the middle of professional expertise
and public opinion. Companies can interpret and
create certain results and then ask the public to
make a choice out of them.
SOME INTERESTING EXAMPLES AND THEIR
VALUABLE INSIGHTS
· Being a movie freak the first example that
crosses my mind is that of the youth favorite JAB WE
MET. The makers of the movie crowdsourced the task
of giving an enticing name to the flick and conducted
popular voting. Three options were given:
1. Ishq Via Bhatinda
2. Jab We Met
3. Punjab Mail
The three alternatives reduced the effort needed to
enter the contest & the participants just had to send
an SMS. The catchy and contemporary Hinglish (a
mix of English and Hindi words) acted as an unshown
trailer depicting 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.
Insight: A flavor of the actual ice cream can be
given subtly through crowdsourcing.
· The most “in” thing of today's times
Facebook has used crowdsourcing since
2008 to create different language versions of
its site. The company claims this method
offers the advantage of providing site versions
that are more compatible with local culture.
Insight: The concept of crowdsourcing has an
inherent advantage that “what is created by
people would enjoy greater acceptability by
them.”
· The most loved cola, Pepsi, launched a
marketing campaign in early 2007 which
allowed consumers to design the look of a Pepsi
can. The winners would receive a $10,000 prize,
and their artwork would be featured on 500
million Pepsi cans around the United States.
Insight: Crowdsourcing brings about customer
Nikita Agarwal
Is currently pursuing her MBA from
N.L.Dalmia Institute of Management
Studies & Research. A Mumbaikar
and a Commerce graduate from
Sydenham College of Commerce &
Economics, she loves writing,
blogging, dancing & listening to
music.
Author
“Crowdsourcing is the act of outsourcing tasks,
traditionally performed by an employee or contractor, to
an undefined, large group of people or community (a
"crowd"), through an open call.”
CROWDSOURCING
30| Buzz - The Markazine | Jun 2011 31| Buzz - The Markazine | Jun 2011
GYAAN
indicator of the kind of magic tricks that are in the
pocket of a marketeer through the tool of
crowdsourcing.
With growing competition marketeers need to
pilot new ideas for gaining the attention of the
commoner. Crowdsourcing is one such tool which
eases the task of the crowdsourcing party and
gives an invitation to the interested people to
reflect their infatuation towards the brand,
product, concept, idea etc through getting
involved.
Like every other thing, even a seemingly perfect
tool called crowdsourcing has a tint of grey side to
it. The company should undertake the act of
crowdsourcing considering all the minute
nuances of the activity. Sometimes the initiative
could fall flat because of lack of interest creation
in the minds of those targeted. Here, a very
essential thing is to gauge beforehand what
exactly could make the people targeted get up
and get going to be a part of the crowdsourcing.
As the monetary aspect is less attractive in this
case, the people should be touched emotionally.
Marketeers are, now, bringing up new ideas in
relation to this concept to attract and engage
customers. They get a firsthand insight of what
exactly customers desire, which can help in
taking strategic decisions. The people involved
may feel a brand-building kinship with the
crowdsourcing organization, which is the result
of an earned sense of ownership through
contribution and collaboration. When the work is
outsourced to a particular group of employees
the ideas generated may be confined to a few
brains, whereas crowdsourcing leads to a
pooling of ideas of people of varied
demographics, thereby increasing the chances
of a EUREKA!!!
involvement towards the brand which in turn
shoots up brand loyalty.
Procter & Gamble :
They used crowdsourcing with their research-
based product development, reaching out to
sc ient ists outs ide their own R&D
departments.
Insight: Crowdsourcing can be useful not just
with simple, repetitive tasks but also with
complex research and development.
The above mentioned few examples are just
“A very essential thing is to gauge beforehand what
exactly could make the people targeted get up and get
going to be a part of the Crowdsourcing”
32| Buzz - The Markazine | Jun 2011 33| Buzz - The Markazine | Jun 2011
GYAAN
indicator of the kind of magic tricks that are in the
pocket of a marketeer through the tool of
crowdsourcing.
With growing competition marketeers need to
pilot new ideas for gaining the attention of the
commoner. Crowdsourcing is one such tool which
eases the task of the crowdsourcing party and
gives an invitation to the interested people to
reflect their infatuation towards the brand,
product, concept, idea etc through getting
involved.
Like every other thing, even a seemingly perfect
tool called crowdsourcing has a tint of grey side to
it. The company should undertake the act of
crowdsourcing considering all the minute
nuances of the activity. Sometimes the initiative
could fall flat because of lack of interest creation
in the minds of those targeted. Here, a very
essential thing is to gauge beforehand what
exactly could make the people targeted get up
and get going to be a part of the crowdsourcing.
As the monetary aspect is less attractive in this
case, the people should be touched emotionally.
Marketeers are, now, bringing up new ideas in
relation to this concept to attract and engage
customers. They get a firsthand insight of what
exactly customers desire, which can help in
taking strategic decisions. The people involved
may feel a brand-building kinship with the
crowdsourcing organization, which is the result
of an earned sense of ownership through
contribution and collaboration. When the work is
outsourced to a particular group of employees
the ideas generated may be confined to a few
brains, whereas crowdsourcing leads to a
pooling of ideas of people of varied
demographics, thereby increasing the chances
of a EUREKA!!!
involvement towards the brand which in turn
shoots up brand loyalty.
Procter & Gamble :
They used crowdsourcing with their research-
based product development, reaching out to
sc ient ists outs ide their own R&D
departments.
Insight: Crowdsourcing can be useful not just
with simple, repetitive tasks but also with
complex research and development.
The above mentioned few examples are just
“A very essential thing is to gauge beforehand what
exactly could make the people targeted get up and get
going to be a part of the Crowdsourcing”
32| Buzz - The Markazine | Jun 2011 33| Buzz - The Markazine | Jun 2011
GYAAN
When everyone decided to have some fun, we
thought why not start a war? There was
intensity, aggression, powerhouse action, the
usual ingredient of wholesome entertainment
and whopping prizes worth Rs 1 Lakh up for
grabs.
Sang Real was kept as an inter college online
event where the participants revisited their
marketing concepts There were the most
unusual mishaps when speed and accuracy
The world doesn't become a great place to live
in because of preservers. It is the expanders
who do not restrict themselves to the defined
horizons and come up with something new. For
them- to define is to limit. NJM, keeping up to its
legacy, came up with the new addition to it's
already action packed calendar, in the form of
NJM Week. For a debut event, it met with an
overwhelming response.
34 | Buzz - The Markazine | Jun 2011 35| Buzz - The Markazine | Jun 2011
‘ Broadway's dark tonight,
A little bit weaker than it used to be,
See the young man sitting in the old man's bar,
Waiting for his turn to die’
Broadway was indeed darker than it used to
be. With the usual dreary schedule following
another and the old man's bar serving up the
same concoctions, the road back to glamour
and supremacy was indeed a bit tougher than
the usual uphill endeavors. That little enigma,
that little wave of the wand, that little jig that
brings the entire panorama out of obscurity
and flushes shades of symbolic fervor into
hearts was missing. That's when we at NJM
stood up and said…
“Blahhhhh…let the Marketeers rule
mayhem!!”
NJM, where ideas are created and chucked
away with scarily equal dismissiveness, and
where we do not care, because we know the
next one will be ruling the roster in half the
time. Welcome to NJM, where we decide how
to change the aeons old marketing concepts
and are hell bent on bending the bends to
create new bends only to bend them the next
time we have those just-off-the-work 'shots'.
And where we create the 'BuZZ' around our
'Conquest's, grill the “Last Marketeer Standing'
till he wishes he wasn't 'the One', and celebrate
and honour the Kotlers' and Druckers' and
Lewitts' existences for an entire week, for we
believe no matter how high the bark grows and
how much the branches outgrow each other in
their race for their time under the sun, the roots
always hold sway.
And in case you gain any misconception about
the work we do, well the name should bring you
back to harsh reality, because at Not-Just-
Marketing, the task just begins at the 'M' word.
What follows next is stretching the entire gamut
to an extent where the scope overhauls the
enlisted objectives and after hours and hours of
finalizing and executing and re-executing the
'final step's, we suddenly realize, we there is
another that follows. And what's worse is that no
matter what we do, the bloody bug to better
ourselves just doesn't die!
Well..that was us..and yeah..have to cut it short
here. The damn bug bit again. Darn!
Guerrilla Warzone
N J MFEATURE
The junior committee rose to the occasion and
made it a roaring success. For the first time, the
Conquest Corporate Project was being offered to
the batch as the prize. With Bollywood being the
under-current as the theme, this intra college
event included some really fun activities like Flop
Movie Marketing, preparing wacky CV for actors for
the most amusing parts [Fancy Bobby darling
playing the role of Shankar Nagre in Sarkar]. If just
the sound of it is leaving you in splits, imagine the
madness to witness it sitting right there. That's the
level of madness we are talking about.
tried to go hand in hand.
Guerrilla Warzone was an intra college event
starting with the online round of STP which helped
us to choose the final cut of participants who
entered the zone of battle and aggression-
Guerrilla Zone.
“Evil met the Alter Ego”- there was a flurry of
ambush. With subsequent round testing 6 different
facets of marketing of participants incorporated
into a game and the final round being a Pricing
Game
It's time to be part of the action and play the
protagonist rather than being the audience. Cheers
to another exciting year ahead.
When everyone decided to have some fun, we
thought why not start a war? There was
intensity, aggression, powerhouse action, the
usual ingredient of wholesome entertainment
and whopping prizes worth Rs 1 Lakh up for
grabs.
Sang Real was kept as an inter college online
event where the participants revisited their
marketing concepts There were the most
unusual mishaps when speed and accuracy
The world doesn't become a great place to live
in because of preservers. It is the expanders
who do not restrict themselves to the defined
horizons and come up with something new. For
them- to define is to limit. NJM, keeping up to its
legacy, came up with the new addition to it's
already action packed calendar, in the form of
NJM Week. For a debut event, it met with an
overwhelming response.
34 | Buzz - The Markazine | Jun 2011 35| Buzz - The Markazine | Jun 2011
‘ Broadway's dark tonight,
A little bit weaker than it used to be,
See the young man sitting in the old man's bar,
Waiting for his turn to die’
Broadway was indeed darker than it used to
be. With the usual dreary schedule following
another and the old man's bar serving up the
same concoctions, the road back to glamour
and supremacy was indeed a bit tougher than
the usual uphill endeavors. That little enigma,
that little wave of the wand, that little jig that
brings the entire panorama out of obscurity
and flushes shades of symbolic fervor into
hearts was missing. That's when we at NJM
stood up and said…
“Blahhhhh…let the Marketeers rule
mayhem!!”
NJM, where ideas are created and chucked
away with scarily equal dismissiveness, and
where we do not care, because we know the
next one will be ruling the roster in half the
time. Welcome to NJM, where we decide how
to change the aeons old marketing concepts
and are hell bent on bending the bends to
create new bends only to bend them the next
time we have those just-off-the-work 'shots'.
And where we create the 'BuZZ' around our
'Conquest's, grill the “Last Marketeer Standing'
till he wishes he wasn't 'the One', and celebrate
and honour the Kotlers' and Druckers' and
Lewitts' existences for an entire week, for we
believe no matter how high the bark grows and
how much the branches outgrow each other in
their race for their time under the sun, the roots
always hold sway.
And in case you gain any misconception about
the work we do, well the name should bring you
back to harsh reality, because at Not-Just-
Marketing, the task just begins at the 'M' word.
What follows next is stretching the entire gamut
to an extent where the scope overhauls the
enlisted objectives and after hours and hours of
finalizing and executing and re-executing the
'final step's, we suddenly realize, we there is
another that follows. And what's worse is that no
matter what we do, the bloody bug to better
ourselves just doesn't die!
Well..that was us..and yeah..have to cut it short
here. The damn bug bit again. Darn!
Guerrilla Warzone
N J MFEATURE
The junior committee rose to the occasion and
made it a roaring success. For the first time, the
Conquest Corporate Project was being offered to
the batch as the prize. With Bollywood being the
under-current as the theme, this intra college
event included some really fun activities like Flop
Movie Marketing, preparing wacky CV for actors for
the most amusing parts [Fancy Bobby darling
playing the role of Shankar Nagre in Sarkar]. If just
the sound of it is leaving you in splits, imagine the
madness to witness it sitting right there. That's the
level of madness we are talking about.
tried to go hand in hand.
Guerrilla Warzone was an intra college event
starting with the online round of STP which helped
us to choose the final cut of participants who
entered the zone of battle and aggression-
Guerrilla Zone.
“Evil met the Alter Ego”- there was a flurry of
ambush. With subsequent round testing 6 different
facets of marketing of participants incorporated
into a game and the final round being a Pricing
Game
It's time to be part of the action and play the
protagonist rather than being the audience. Cheers
to another exciting year ahead.
Contact:[email protected]
Follow us on : 37| Buzz - The Markazine | Jun 2011
Opinion Wall
Lavanya Hatwale
NMIMS
Ashwin P AnandNMIMS
The current scenario of cut throat competition to gain market share has put the
Customer in the backseat. Co-creation is the order of the day and companies need to provide a 'platform' with the right knowledge, skills and resources on which customers can co-create value. This provides the customers with a superior experience that improves their satisfaction, loyalty and ultimately strengthening the bottom-line for the company.
Co-creation is the practice of developing systems, products, or services through
the collaborative execution of developers and stakeholders, companies and customers, or managers and employees. The “ivory tower” seems to have opened with Co-creation sparking innovation, cutting costs, increasing employee engagement, and generating value. Large organizations including Nike, Nokia and IBM are testimony to the same. In fact if experts are advising companies to move to the third stage of co-creation that seeks continuous and sustainable improvement across systems and processes. The verdict is thus loud and
clear. Co-Create and move forward.
36| Buzz - The Markazine | Jun 2011
Contact Details :
Neelotpal Shukla - 9619339510
Nishchai Nevrekar - 9004669367
Gaurav Modi - 9619193091
Rachita Behl - 9702467969
Kushal Mehta - 7738220886
Krishnakant Jonnalgadda - 9975043898
Tushar Kumar - 9768557929
Nandini Kapur - 9619484969
Pawas Soni - 9619594064
Naresh Chandak - 9619473047
Puneet Aggarwal - 7666947322
Neha Talwar - 9619270546
Team
Contact:[email protected]
Follow us on : 37| Buzz - The Markazine | Jun 2011
Opinion Wall
Lavanya Hatwale
NMIMS
Ashwin P AnandNMIMS
The current scenario of cut throat competition to gain market share has put the
Customer in the backseat. Co-creation is the order of the day and companies need to provide a 'platform' with the right knowledge, skills and resources on which customers can co-create value. This provides the customers with a superior experience that improves their satisfaction, loyalty and ultimately strengthening the bottom-line for the company.
Co-creation is the practice of developing systems, products, or services through
the collaborative execution of developers and stakeholders, companies and customers, or managers and employees. The “ivory tower” seems to have opened with Co-creation sparking innovation, cutting costs, increasing employee engagement, and generating value. Large organizations including Nike, Nokia and IBM are testimony to the same. In fact if experts are advising companies to move to the third stage of co-creation that seeks continuous and sustainable improvement across systems and processes. The verdict is thus loud and
clear. Co-Create and move forward.
36| Buzz - The Markazine | Jun 2011
Contact Details :
Neelotpal Shukla - 9619339510
Nishchai Nevrekar - 9004669367
Gaurav Modi - 9619193091
Rachita Behl - 9702467969
Kushal Mehta - 7738220886
Krishnakant Jonnalgadda - 9975043898
Tushar Kumar - 9768557929
Nandini Kapur - 9619484969
Pawas Soni - 9619594064
Naresh Chandak - 9619473047
Puneet Aggarwal - 7666947322
Neha Talwar - 9619270546
Team
Contact:[email protected]
Follow us on :