Markathon October 2012

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October 12 Marketing Magazine of IIM Shillong Volume4 | Issue4 MARKATHON Interview with Mr. Robert Holdheim Managing Director of Edelman, India Cover Story Bringing Home the Milky Way

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October 2012 issue of Markathon-monthly marketing magazine of IIM Shillong

Transcript of Markathon October 2012

Page 1: Markathon October 2012

Octo

ber

12

Marketing Magazine of IIM Shillong Volume4 | Issue4

MARKATHON

Interview with Mr. Robert Holdheim

Managing Director of Edelman, India

Cover Story

Bringing Home the Milky

Way

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Dear Readers,

Recently media has created a buzz around government

announcement of allowing FDI in multi brand in India.

The 1991 liberalization saw the entry of many foreign

players in India. That served Indian economy well for all

we know while the apprehensions from various political

parties were enormous at that time. The situation is not

very different even today since it

seems that the nation is divided in its

opinion on the repercussions of such

policy. Only time will unveil the

motives of the policy, be it for the

improvement of the Indian economy

or the play of politics.

With so much said on the foreign

companies entering India, there was a man who created

an Indian brand to give every Indian the taste of India.

Yes you have guessed it right. The man is none other

than the most admired Dr. Verghese Kurien (1921-

2012), founding chairman of the Gujarat Co-operative

Milk Marketing Federation (GCMMF). He was

responsible for the creation and success of the

famous Amul brand of dairy products under his

extraordinary and dynamic leadership.

Markathon pays its tribute to Dr. Kurien, rightly called

the father of the white revolution in India. This edition’s

cover story talks about the Indian dairy industry. It

examines the growth prospects and the challenges of

this industry. The cover story looks into three key

players namely GCMMF, KCMMF (Kerala Cooperative

Milk Marketing) and TNCMPF (Tamil Nadu Cooperative

Milk Producers) and narrows down to analyze the

success story of GCMMF uncovering its marketing mix

and distribution channels.

The launch of “corporate speaks” in our previous

edition of September 2012 has been well received by

both students and corporates. This month we have Ms.

Milana Jagadeesh, Team Leader for France Certification

at Cerner Corporation, PGSEM (Batch 2010) Student,

IIM B and Dr. Preeti Krishnan Lyndem, Visiting Faculty,

Marketing Area, IIM B speaking on the effectiveness of

the creativity in advertisements. They explain where to

a draw line between creativity and advertisement since

these as much as they complement each other, they

may repel too.

Moving on, this month’s vartalaap features a prominent

business personality, Mr. Robert Holdheim from the

world of Public Relations. Mr. Holdheim, the CEO and

Managing Director, India at Edelman is a veteran of

Edelman’s Frankfurt, London and NY offices. Having

handled important accounts like UPS, Samsung,

Tenneco and Corning, he has worked on corporate

positioning, Business-to-Business product marketing

and crisis management, to name a few. Mr. Holdheim

has vast experience in Public Relations and Media

Communications and shares interesting insights about

this industry and its contribution to business.

With each new edition, markathon has always strived to

move one step forward. From this month, markathon is

proud to go green. Henceforth, the winning participants

for perspective, E2E and silent voice would be receiving

e-certificates thus saving paper.

As always, we will try to improvise and ascertain that together we will learn and together we will grow. Do send in your feedback/suggestions to [email protected]

Happy Reading

Team Markathon

FROM TEAM MARKATHON

THE MARKATHON TEAM

Editors

G S N Aditya

Piyush Agarwal

Mayur Jain

Sowmya R

Swati Nidiganti

Umang Kulshrestha

Creative Designers

Priya Kumari Agrawal

Rushika Sabnis

Cover Story

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CONTENTS

FEATURED ARTICLES PERSPECTIVES MOVING TOWARDS “STEALTH MARKETING”: A EUPHEMISM FOR MANIPULATION - LIFTING THE VEIL FROM UNDERCOVER MARKETING PRACTICES

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ESHA GUPTA | TAPMI

REGIONAL PLAYERS GIVING THE NATIONAL BRANDS A RUN FOR THEIR MONEY

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MOHAMMED SHAHBAAZ | IIM INDORE

CORPORATE SPEAKS CURSE OF THE CLICKER AND THE CLIO: ADVERTISEMENT CREATIVITY VS. EFFECTIVENESS 10 MS. MILANA JAGADEESH,TEAM LEADER FOR FRANCE CERTIFICATION AT CERNER CORPORATION, PGSEM (BATCH 2010) STUDENT, IIM B DR. PREETI KRISHNAN LYNDE,VISITING FACULTY, MARKETING , IIM B

COVER STORY BRINGING HOME THE MILKY WAY 14 SHUBHI|PADMA|SHIPRA|IIM S

VARTALAAP MR. ROBERT HOLDHEIM 21 MANAGING DIRECTOR OF EDELMAN, INDIA

WAR ZONE EYE 2 EYE “BRAND GENERICIDE: A BOON OR A BANE?” 25 Payal Pathak |XIM B| Rohit V Tiwari |WELINGKAR INSTITUTE OF MANAGEMENT

SILENT VOICE GOOGLE +

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SPECIALS ADDICTED UMANG KULSHRESTHA & G S N ADITYA | IIM S

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BOOK MARK SOWMYA R | IIM S

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BRAND STORY SWATI NIDIGANTI | IIM S

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UPDATES MAYUR JAIN | IIM S 31

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perspective markathon | august 2011

“Excuse me sir,” a young man asks you as you pass by him. “Would you mind taking a picture for us?” and holds

out a shiny new camera phone. “Just one picture? We’re on our honeymoon.” You agree. “You say to yourself,

“This thing is pretty cool.” you hand him back the phone and it’s not until you are halfway home that you realize

that neither of them was wearing the wedding Ring.

Moving towards “Stealth Marketing”: A Euphemism for

Manipulation - Lifting the veil from Undercover

Marketing Practices

Esha gupta | tapmi

In July, 2002, the Sony-Ericsson Corporation hired 60

actors to travel to various cities across the country

posing as tourists and ask people passing by to take

their picture with the new T68i cell phone. Sony-

Ericsson did not set up any promotional materials at

the sites, and the actors were instructed not to

introduce themselves as

representatives of the

company. The initiative

called “fake tourists”

reached a large number of

people and the national

media attention.

Since wary and cynical

viewers are bombarded with

an ever-increasing number

of advertising messages,

they immediately tend to

put up their defences as they

detect they are being sold

something. A 2005 study by

Jansen and Resnick

illustrates this risk.

Consumers were shown multiple sets of Internet

search results, some of which were labelled

advertising. Although the search results substantively

were the same, consumers rated the unlabeled search

results as more relevant than the labelled results.

Marketers must therefore rely on more subtle

methods of communicating a message to their

consumers. Also In 2003 Nielson study concluded that

young men between 18 and 34 years were watching

7.7% less prime-time TV than a year and adding to it is

the ad-skipping ability of personal television recorders

(PVRs) or digital video recorders (DVRs). These devices

are termed as Commercial Killers. Therefore here is

increased emphasis on stealth advertising

Martin and Smith (2008) define stealth marketing as

“the use of surreptitious marketing practices that fail

to disclose or reveal the

true relationship with

the company that

produces or sponsors

the marketing

message”. Stealth

marketing techniques

are intended to

promote the brand to

audience’s

subconscious. It

attempts to present a

new product or

service by cleverly

creating and

spreading “buzz” in an

obtuse manner and

catch people at their

most vulnerable moment. Commercial Alert, a U.S.

based consumer protection organization, requested

the U.S. Federal Trade Commission (FTC) to undertake

an investigation of companies that conduct stealth

marketing. It argued that by failing to disclose that

they have been enlisted to promote

products/services, stealth marketers are

fundamentally fraudulent and misleading. Even

Canadian Marketing Association (CMA) states that

marketers should avoid Stealth marketing (also called

undercover marketing) initiatives which portray

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“A line is crossed, I think, when you go outside of those

normal boundaries and start to deceive people in ways

that they are, where they are totally unwitting to

what's going on.”

-By Malcolm Gladwell, The British-Canadian

Journalist and the author of the Bestselling

book-The Tipping Point

vmarketers’ agents as acting independently and

without compensation when they are not.

Below is an attempt to throw some light on the

different types of tactics which fall under the big

umbrella of Stealth marketing

Viral marketing

The term “viral

marketing” was coined

by venture capitalist

Steve Jurvetson in 1996

when he described the

marketing strategy of

the free e-mail service Hotmail whereby each e-mail

sent arrived with the appended

message “Get your private, free e-

mail from Hotmail at

http://www.hotmail.com” along

with the sender’s implicit

recommendation. It refers to a

promotion technique that uses the

existing social networks in order to

increase brand awareness. Using

different approaches, viral

marketing encourages customers to

recommend a certain brand to their

acquaintances spreading the

message through a viral process,

similar to the proliferation of

pathological viruses. By generating

word-of-mouth publicity to create

“authentic” experiences, viral

marketing attempts to harness the

strongest of all consumer triggers—

the personal recommendation. Receiving a personal

recommendation via e-mail from someone you know

is by far more credible than an anonymous e-mail.

Dr. Pepper used it to surreptitiously hype a new

product to unsuspecting customers. The new product

is a milk-based soft drink with such flavours as

“Chocolate Insanity” and “Pina Colada Chaos.” The

company also recruited young adults with popular

blogs. The main task was to spread the word about

the new product by developing a “blogging network,”

whereby the new product was hyped by the young

recruits who shared their enthusiasm about the

product via their respective blogs and linking to the

company’s site without disclosing their assignments.

Brand Pushers

Brand pushers are hired novice actors and actresses

who approach unsuspecting people in real-life

situations by personally slipping commercial messages

in trendy bars, music stores, and tourist hot spots.

These actors must come off as genuine by being

personable, approachable, and attractive, but not too

attractive to be believable. Their main task is to act

nice and slide the brand under the prospect’s nose.

This tends to create a chain of influence by exposing a

product or service to a few trendsetters who in turn

influence hundreds more. They are required to

maintain utter secrecy about their

occupations by signing confidentiality

agreements that prohibit them from

divulging their secret assignments.

The music industry also uses

clandestine marketing initiatives by

planting hip-looking guys as “fake

shoppers” in a music store where

they chat about a great new artist in

the presence of unsuspecting store

customers. By overhearing the chat,

the real customers are inclined to

buy the talked-about CD. Similarly, in

2001, Italian scooter maker Piaggio

hired young, good-looking recruits to

ride around Los Angeles and Houston

on its colourful, stylish Vespa

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Lauren Bacall in an interview with Matt Lauer on the "Today"

program

scooters and park them in places-to-be-seen around

town. While the paid drivers did not attempt to sell

the scooters, their main task was to create buzz and a

cool image. Brand pusher actually represents a clever

reincarnation of an old technique. The genesis of this

tactic can be traced to the 1920s when Macy’s

reportedly attempted to unload a large inventory of

unsold long white gloves. The retailer hired 25 well-

dressed women to don the gloves on the subway.

Riders were bemused and asked the women about

the gloves. It took the retailer only a few weeks to

sell all the gloves.

Celebrity Marketing

It is a term used when the paid celebrity

endorsements are made to look like unpaid

testimonials. Some celebrities are hired by large

pharmaceutical companies to discuss their

medical ailments and mention specific drugs while

they are casually chatting with a talk-show host on

the air masquerading it as a candid interview.

In March 2002, when Lauren Bacall was

interviewed by Matt Lauer, the co-host of the

Today show, she mentioned that one of her

friends is partially blind due to an eye disease

called macular degeneration. Ms. Bacall referred

to a new drug, Visudyne, which treated the

ailment. She in fact was paid by the maker of

Visudyne to plug the brand. In August 2002,

actress Kathleen Turner discussed her struggle with

rheumatoid arthritis on ABC’s Good Morning America

and CNN, respectively. While she did not mention any

specific company or brand, she referred viewers to a

web site co-sponsored by Amgen Inc. and Wyeth,

which market Enbrel, a drug that battles that medical

condition.

Since FDA requirements stipulate that all drug

advertising messages should include cautions about a

medication and spell out the anticipated side effects

they were hurriedly mentioned at the end of the

message by an announcer in a low monotone voice.

By using stealthy celebrity endorsements, drug

companies tend to directly flout FDA requirements by

skipping the side effects altogether.

Bait and Tease Marketing

It is the strategy of getting people interested in

something that later is revealed to be something quite

different. In July 2002, Mercedes-Benz spent $7.9

million to produce a mock trailer for a fictional movie

as a ploy to promote its product. The mock trailer was

for a fictional movie called Lucky Star. The action-

packed trailer depicted Oscar-winning actor Benicio

Del Toro being chased by the authorities and making

pulse-pumping escapes in a Mercedes SL 500.To

project a sense of authenticity, the carmaker

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“Fraud is fraud; a harmless-sounding name

such as “Stealth marketing” doesn’t change

that”

By Gary Ruskin, Executive Director

Commercial Art

persuaded movie theatre chains to run the mock

trailer during the trailers slot of movie previews rather

than being shown along with other commercials. At

the end of the 60-second TV and movie “trailer,”

viewers were invited to visit a Lucky Star web site. The

main objective of the campaign was to create a

nation-wide “buzz” through word-of-mouth and

media coverage. Below is a scene of the movie

Product placement

This type of stealth marketing strategy refers to the

embedding of logos and brands in TV shows, movies,

video games and music videos. It increased

considerably after the placement of Reese’s Pieces in

the E.T. movie. As per a research the program ‘The

Biggest Loser’ has had the most number of

occurrences of Product placements

While brands embedded in movies or television

programs are received by the viewer passively, the

effect of brands placed in video games is much more

intense and Unlike movies, video games are played

numerous times. In September 2002, Electronic Arts,

of the world’s biggest producers of video games

signed contracts to receive more than $2 million for

including McDonald’s and Intel in its games. Below are

the images showing Coca-cola being placed

strategically in the famous American Idol show and

Subway being placed in a Video game.

Despite high-profile recent controversies about the

practices, the legal literature is devoid of any

systematic analysis of the problem that stealth

marketing presents. As Justice Brandeis said,

“Sunlight is . . . the best of disinfectants, “so

unmasking stealth marketing seems like an ideal way

to curb such untoward behaviour by marketers. After

all

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Regional players giving the National brands a run for

their money

Mohammed Shahbaaz | IIM Indore

‘Think global and act local’ is a marketing mantra

every big brand knows, but what if your prime

competitors are regional players who act locally by

default. The table tells the story of some of the top

performing regional players across various categories

in India.

The regional players are proving to be more than a

handful for the National brands. Companies like

Prakash Snacks have outperformed FMCG majors ITC,

Perfetti and Parle in the snacks category.

According to Booz & Co By 2020, Maharashtra's GDP

will exceed that of Greece, Belgium, and Switzerland,

and Uttar Pradesh will have a bigger economy than

Singapore or Denmark. So being a regional player of

just Maharashtra or Gujarat could be realistic and

profitable. Let’s try and analyse who enjoys the

advantage in this David vs. Goliath battle.

India is a diverse and fragmented nation, a significant

advantage for regional brands. An apt example is that

of coffee. Most south Indians prefer to have filter

coffee, which is why Nescafe, doesn’t find too many

takers in the South.

The national players often are unable to connect with

the local issues and aspirations. This is where the

regional brands stay ahead in marketing. The new

Indian middle class also plays an important role here.

With growing prosperity, middle class Indians no

longer feel the need to associate with global names. A

local brand name appeals better to the consumers of

the region as compared to a brand name in an alien

language.

IPL dividing the nation into regions has also provided

the regional players with a great marketing

opportunity. It is much more suitable for a local brand

to associate with the regional team than for a national

brand which would risk facing desertion from fans of

other teams.

The regional players also compete by catering to a

lower price segment. MD of Ahmedabad based

Liverpool Retail India, Kailash Gupta, says, “National

brands retail at a mark-up of around three times,

which is channelized into branding. We pass this on to

the customer while retaining net margins of 8-10%.”

The regional players gain price advantage by investing

lower in mass advertising and transportation. The

lower cost also helps these brands to incentivize the

retailers to push their products.

Distribution strategy has also been an important tool

for regional players. For example a lot of regional

players in the FMCG space tend to service the socio-

economic-class C and D retail outlets which the

national brands find difficult to service. "They use the

same distribution channels as national players," says

Pradeep Kashyap, Founder of MART, "The difference

is in their ability to service and fill a local need more

effectively."

Emerging social media trends are also supporting the

regional players. In markets where the internet

penetration is high the use of social networking sites

to search local business has reached 67%. The

regional players hold a distinct advantage here. Firstly

it is easier to maintain a Facebook page for limited

number of locations. Secondly the regional players are

able to connect better to the consumers through

branding based on regional events. Most national

brands have 100% web presence but when a ‘local

web test’ i.e. a Google search with the ‘brand’+

‘product category’ + ‘geographic location’ is

performed the presence falls to below 10%.

Some National Players like HUL have retaliated by

launching region specific brands of their own. For

example HUL launched Ruby, a tea brand specifically

for the Karnataka. It also has region-specific soap

brands. However round one of this Cat-n-Mouse

chase has gone to the regional players.

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Category Company Success Story Differentiating factor

Snacks Prakash snacks

Prakash sancks has

grown at over 50%

since it's in 2003 and

promises a turnover

of Rs. 400 cr. This

fiscal

Pakash snacks targeted

lower income

neighborhoods and slums

where the nationa brands

could not reach owing to

their higher margins

Shaving cream Vi JohnHigherst selling

shaving cream in India

Targeted the barber shop

as customer , for WoM

publicity and social proof

Tea Wagh Bakri

It has a share of

almost 50% of

branded tea in Gujarat

market and 7% of

Indian market

Lower price and localized

marketing

Oral care K P Nambooris

Targeting revenues of

Rs.200 cr in the next

five years while

growing at 15% CAGR

Products are prices within

the reach of common man

in keeping with the

company tradition.

Consumers repose

immense faith in

Namboodris who are

known to use traditional

herbs

Candies/ Jams Mapros

Revenues of Rs.100 cr.

While growing at a

CAGR of 32%

The high furit juice

content of Mapros crushes

and squashes -45% as

compared to 25% of rivals

Kissan. Since Panchagini,

there home location

accounts for over 70% of

countries strwberry

production, they were

able to forge exclusive

partnerships with farmers

Spices Shakti Masala

Employs over 1000

people and has a

turnover of Rs. 330 cr.

Knowledge of local

consumer preferences

helped them arrive at a

perfect blend of tradition

and technology, creating

the best flavor

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Picture1: Clip from JK White Cement TV Advert

Curse of the Clicker and the Clio: Advertisement Creativity vs.

Effectiveness

Ms. Milana Jagadeesh

Team Leader for France Certification at Cerner Corporation, PGSEM (Batch 2010) Student, IIM B

Dr. Preeti Krishnan Lyndem

Visiting Faculty, Marketing Area

Indian Institute of Management Bangalore

How often has it been that we have watched a

superbly creative or an extremely bizarre

advertisement on television that has a high recall

value? The only problem here is that we seem to

recall the advertisement but are unable to recall the

brand associated with this advertisement. In other

cases we seem to recall the brand associated with the

advertisement but find absolutely no relevance of the

advertisement to the brand. In scenarios like these

whom should we blame, the audience who are so

engrossed in the advertisement that they fail to

recognize the brand or the company that is failing to

achieve the desired result despite having a creative

advertisement. There are even scenarios where

brands have a high level of awareness but have

negative association owing to the bizarre and graphic

nature of the advertisements, which do not suit the

brand’s identity? In the race to differentiate,

advertisers are often losing vision and deviating and

falling prey to the curse of the clicker (remote-control)

and the curse of the Clio awards.

Curse of the Clicker Today every product category is manufactured by

thousands of brands and this has resulted in an

overwhelming media clutter. The number of

advertisements that grace our screen is just mind

boggling and it is not humanely possible to remember

each of these brands while making a purchase

decision. Consumers are no longer interested in

advertisements that are aired on TV and make a quick

reach to the remote the minute they see a

commercial break. In such a situation, companies

have to churn out advertisements that will hold the

attention of the consumer and ensure they see,

register and recognize the brand while making a

purchase decision. In the bargain, companies are

focusing on ads that rely on eye popping graphics or

bizarre themes rather than creating ads that will

differentiate their brand from the rest and help the

company generate profits through sales. What results

in most of the cases is a brand with high recognition

and recall value but with negative associations in the

minds of the consumers.

A classic example of this curse would be the JK White

Cement advertisement that shows a young woman

coming out a swimming pool (see Picture 1). No one

could guess that it was an advertisement for Cement

until they saw the JK White Cement logo at the end of

the advertisements. This ad was considered

distasteful and had absolutely no relevance to the

product in any way. It was clearly made to capture the

attention of the consumer and prevent them from

switching channels. The result was negative brand

association or a negative brand image in the minds of

the consumers. The brand managed to garner some

awareness but in a very sarcastic and distasteful way

that is not desired out of an advertisement campaign.

Companies are falling prey to the curse of the television clicker and the curse of the Clio awards in an attempt

to keep audience glued to their advertisements and secure awards for their communication strategies. But are

they really creating a positive impact on their brands through these advertisements? This article examines the

dilemma between advertisement creativity and effectiveness, and recommends strategic steps to break free

from the curses and ensure overall success for a brand

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Picture 3: Clip from Cadbury’s Five Star ‘Ramesh

Suresh’ TV Advert

Picture 4: Clip from Gems ‘Raho Umarless’ TV

Advert

Another advertisement on similar lines (Picture 2)

shows an old woman transforming into a dog upon

consuming this cotton candy that transforms into a

bubble gum in your mouth after saying, “Kisne kaha ki

mein insaan hoon (Who said that I was human)?”

Many struggle to remember the name of the brand

associated with the advertisement. The advertisement

recall is very high, however the struggle to recall

which bubble gum brand it belonged to is an

indication of creativity overriding advertisement

effectiveness. What is the point in creating an

advertisement that is created to stand out from the

rest of the crowd, when people do not even register

the brand being represented? Some viewers even

narrated their incredulity when they first saw this

advertisement, so much so that they did not even

bother paying attention to the brand – so, all creative

advertisements do not guarantee that viewers would

pay attention to it.

However, not all brands fall prey to the curse of the

clicker. Cadbury’s Five Star commercial (Picture 3) has

managed to achieve high brand awareness. One has

to just mention ‘Ramesh Suresh’ and most target

audience knows that it is the Five Star advertisement.

The Five Star sub-brand from Cadbury’s has managed

to garner a high recall value. While the theme of

‘Ramesh Suresh’ appears silly, vague and mildly

bizarre, the advertisement does seem to convey a

message of getting lost in the taste of Five Star. Such

creativity has not managed to annoy the viewer and

has led to campaign effectiveness.

The same applies to the latest Cadbury Gem’s “Raho

Umarless” campaign (Picture 4). The Gems

advertisement sends out a message that greed sees

no age but the visuals of a woman being thrown into

midair by a fountain of Gems or the same woman

greedily stuffing a handful of Gems into her mouth

seems quite bizarre (in a funny way) and perhaps

construed as inappropriate or scary to some viewers.

Nevertheless, for the target viewers (especially the

older consumers) the commercial managed to create

a high level of awareness and liking, along with

positive associations in their minds.

Such creative advertising has several advantages.

First, it grabs the attention of the viewer, thereby,

persuading them not to turn their attention away

from the advertisement. Second, creative advertising

when well executed can garner high brand recall.

Third, the content of creative advertisements tends to

trigger word of mouth marketing much quicker than

less creative advertisement.

However, creative advertising also brings in several

disadvantages. Such advertisements can generate

initial curiosity and interest among the viewers, but

such impact is only in the short term. Over time, the

fun element of the advertisement becomes too

familiar and annoying to viewers. Further,

‘advertisement recall’ is many times higher than

actual ‘brand recall’ (the latter being a more

Picture2: Clip from Big Babol Fili Folly Gum TV

Advert

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Picture 5: Clip from Burger King’s ‘Wake Up with

The King’ TV Advert

important metric to evaluate campaign success). If the

creativity is of bad taste or does not match the

product category or brand identity, the brand image

can be negatively impacted in terms of fostering

negative associations in the minds of the consumers.

This would be detrimental to the strength of the

brand.

Curse of the Clio Many times we come across advertisements that are

so creative and pleasing that we get extremely

engrossed in the advertisement and hardly pay

attention to the brand. It is quite challenging to create

advertisements that are creative and effective at the

same time and often advertisers are carried away by

the prospects of winning awards for creativity, that

they lose track of context. This is the Curse of the Clio

and many top brands are subject to this curse.

Advertisements that fall within this category are

individually very creative and thought-provoking but

have no relevance to the brands they are promoting.

Often consumers view the advertisement and rave

about the creativity that went behind making it.

However, they are left wondering about the relevance

of the advertisement to the brand. The advertisement

and the brand seem to be disconnected and like the

Curse of the Clicker, even the curse of the Clio does

not differentiate the brand with respect to the brand’s

value proposition. More emphasis is given to

creativity than relevance of the advertisement. The

final end result is that the advertising campaign wins

awards and acclaims but does nothing for the brand,

thereby, defeating the whole purpose of the

advertisement.

Burger King was known for its bizarre and vaguely

disturbing advertisements for the last couple of years

which includes the Subservient Chicken and Sir Mix-a-

lot versus Spongebob and the restaurant was

represented by a man in a huge, grotesque smiling

mask. Crispin Porter plus Bogusky, the creative and

strategic ad agency behind all these advertisements,

won many awards for the Burger King campaigns.

2004’s “Wake up with the King” campaign, positioned

the restaurant’s mascot as a home intruder (Picture

5). Through this the agency did a great job injecting

youthful energy into the brand in a somewhat odd

way. When Burger King was taking risks with its

adventurous campaigns, McDonald’s, Wendy’s and

Subway were progressing not through creative

advertising but by introducing new items on their

menus. Their advertising campaigns were more

informative than creative. Though the Burger King’s

campaigns appeared to be rejuvenating the brand,

they were not doing anything to keep its customers

hooked on to it by offering new and exciting product

options like McDonald’s. Burger King managed to

garner attention through shock value of its ad

campaigns, which initially won it several accolades

and awards but fizzled out eventually because the

products did not match up to the creative advertising.

United Colors of Benetton (‘Benetton’) got into a

controversy with its “Death Row Visits” campaign

(Picture 6)which featured interviews and photos with

death row inmates in a magazine. It was an attempt to

show that the killers who were condemned to death

were also people just like us. Though having won the

International Clio award, such creativity did not go

down well with the government or people because for

every few pages in the magazine, stood out a bright

green logo with white lettering that read “United

Colors of Benetton”. The magazine featuring these

interviews was sponsored by Benetton and they called

it a catalog though it did not look like one from any

angle. The death penalty magazine outraged the

public who accused Benetton of glamorizing the

convicts while ignoring their crimes calling the death

row images as ‘terribly insensitive”. They were also

accused of fraud for sneaking to the prisons posed as

journalists. The only answer that Benetton had for the

entire outcry was that they were trying to spark a

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12

debate about capital punishment. What started out as

an attempt at creativity to build their brand finally

landed the company with a lawsuit and donations of

up to $50,000 had to be made to the Missouri Crime

Victims Compensation Fund and caused a lot of

emotional anguish for those who lost their loved ones

to these murderers.

Breaking the Curses It has been found that the advertisements that won

awards such as the IPA, Effies, and Cannes Lion scored

high on three criteria, namely, Enjoyment,

Involvement, and Different from other

advertisements. They, however, scored low on the

other categories such as ‘Comprehensibility’ and

‘Relevance’.

This clearly shows that creativity is highly valued in

any advertisement campaign as it invokes enjoyment

and involvement but advertisers should draw the fine

line between creativity and relevance. Advertisers

should not pursue creativity at the expense of other

dimensions. Advertisements, be they eye-popping or

award winning in creativity should always ensure that

the advertisement leaves behind memories that can

be uniquely associated with the brand. The brand

should form the core of the advertising strategy and

the creative ideas should revolve around the brand in

such a way that the consumers are able to identify the

brand as a core element of the advertisement.

The problem also lies with the communication gap

between the companies and their ad agencies.

Companies often approach the ad agencies with the

demand that the advertisements have to be creative,

they need to stand out or the ads need to be different

when in reality the products that need to be endorsed

are not that unique or exciting in nature. Companies

should emphasize first on advertisements that will

work and not make creativity the first priority. This

sends out a wrong message to the ad agencies that

the companies give first priority to creativity even

before effectiveness. Creative ads are so entertaining

and funny that people forget to pay attention to what

is being advertised and companies, unfortunately,

lose a lot of money making a highly entertaining but

an ineffective advertisement.

Further, many advertisements discount authenticity in

the name of creativity. Some of the advertisements

are quite unbelievable to the average consumer that

no amount of creativity can do wonders for the brand.

When ad makers show a girl at a café having Cheetos

instead of a drink, the ad clearly lacks authenticity and

you are left wondering why on earth would someone

go to a café and have Cheetos. Advertisement

believability is paramount.

The advertisements should be clear about their target

segment and communicate to them in a clear way

rather than creating a generic advert that does not

reach out to the target segment. For example, the

latest campaigns of Five Star and Gems are targeting

the adult audience. However, these brands also target

the younger kids for whom these recent campaigns

can be irrelevant and confusing.

It would also be wise to invest some time and money

in testing out the creative advertisements with a focus

group before rolling it out for general viewing to

gauge the effectiveness of the advertisement. This

could save the company a lot of money and would

give them a better understanding of the

comprehensible nature of their advertisements by

interacting with the focus groups. This will give the

companies pointers on how to make creative and

effective ads that appeal to the senses of the

consumers and influence their purchase decision in a

positive way.

In conclusion, the decision of creativity versus

effectiveness is not of making a mutually exclusive

choice. It is one of striking the right balance between

the two with particular focus on having a positive

impact on the focal brand.

Picture 6: Clip from UCB’s ‘Death Row Visits’

Magazine Campaign

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Cover Story

Bringing Home the Milky Way

Shubhi | Padma | Shipra | IIM S

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Indian Dairy Industry India is the largest producer of milk in the world

accounting for over one-sixth of the world’s total milk

production. Dairy industry holds crucial

importance in India. It constitutes an

important segment in the rural

economy and contributes

significantly toward the

socio-economic

development of the

country. It is of

significant importance

that almost 100% of the

total milk produced is

consumed

domestically.

Besides it is

also the

largest

producer

and

consumer of

dairy

products.

The dairy products primarily

comprise of milk, butter, ghee, cheese, cream, curd,

yogurt, dairy whiteners, traditional sweets, chilled

desserts and spreadable fats. Dairy products are not

only a source of inexpensive nutrition to millions in

India, but they are also the only acceptable animal

protein to a large segment of the vegetarian

population.

Policy The total amount of milk produced has more than

tripled from 23 million tonnes back in 1973 to 74.70

million tonnes 26 years later in 1998.

Milk production in India has increased from 84.4

million tonnes in 200-01 to 121.8 million tonnes in

2010-2011, and is anticipated to 127.3 million tonnes

for FY13. Per capita milk availability has also increased

significantly from 222gram/ person to 281 gram/

person during the same period, also pointing to the

increased affordability. As per a study conducted by

Associated Chambers of Commerce and Industry of

India (ASSOCHAM) in November 2011, the dairy

industry in India is likely to reach about Rs 5 lakh crore

by 2015 due to the rapid increase in domestic demand

for milk and milk-based products. The study says that

milk production is likely to reach about 190 million

tonnes per annum in 2015 from

current level of about 123

million tonnes per annum.

This escalation in

production was a

consequence of the

White Revolution.

The unorganized

sector dominates the

Indian Dairy industry,

its share being about 85

per-cent of the total

market. About 80 million

rural families across India are

engaged in dairy production. Also, over

half of the total milk produced is consumed

by the rural market alone.

Dairy products form an intrinsic component of the

traditional Indian food. About 60 per-cent of milk

produced is consumed in its original form, while the

rest is processed to make butter, ghee, sweets etc. for

consumption purposes.

However, lack of fodder resulting in low yield from

cattle coupled with lack of trained and skilled dairy

farm labor, lack of appropriate infrastructure like cold

storage facilities etc. are some of the key problems

which are likely to affect the retail consumption of

milk. These may also lead to escalation in the milk

prices in the domestic market.

The Indian government is set to protect the domestic

dairy industry. It has imposed regulations and tariffs

which hinders the entrance of foreign players to enter

the Indian market. In case the government decides to

ease such regulations, domestic dairy industry

provides a multi-billion dollar potential to foreign

companies.

Competitive Landscape We shall analyze the Indian dairy market by taking the

manufacturers/ packagers of dairy products as the

industry players.

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GCMMF (Gujarat Cooperative

Milk Marketing Federation

Ltd)

KCMMF (Kerala

Cooperative Milk

Marketing)

TNCMPF (Tamil Nadu

Cooperative Milk

Producers)

The Indian dairy market is fairly concentrated. Gujarat

Cooperative Milk Marketing Federation Ltd (GCMMF)

is the leading player in the Indian dairy market. It

generates a 34.1% share of the market's value.

KCMMF (Kerala Cooperative Milk Marketing) and

TNCMPF (Tamil Nadu Cooperative Milk Producers)

hold another 9.8% and 9.7% of the market

respectively.

The industry offers almost no barriers to entry as a

small enterprise, however in order to cater to the

mass market the consumer companies must be large

and should have some level of integration. Forward

Integration, common practice in the industry provides

farmers with opportunities such as the access to

larger markets and capital items such as packaging

and processing by the co-operatives. A wide range of

substitutes exist for dairy products which can be used

by the consumers in case of excessive price rise of

dairy products. Apart from this, rivalry among the

industry players is strong, most operating diverse

dairy portfolios.

Major Industry Players GCMMF is a dairy

product co-

operative and is

engaged in the

marketing and

distribution of

dairy products

which includes milk

powder, butter,

ghee, cheese, ice

cream and baby

milk. It sells its

products largely

under the brand

name of “Amul”. It offers a range of fresh, UHT and

low fat milk products apart from cheeses, flavored

milk and yogurts under this name. Additionally, under

the brand name of “Nutramul”, the company markets

a malt chocolate drink.

The product lines of the company includes spreads,

cheese, ethnic sweets, UHT milk, milk for infants, milk

powders, sweetened condensed milk, fresh milk, curd,

ice creams, chocolate and confectionery, brown

beverages, milk drinks and health beverages. The

company markets its products through dairy and ice-

cream distributors, as well as online website. Products

of GCMMF are also exported to the US, the Gulf

countries and Singapore.

Kerala Co-operative Milk Marketing Federation

(KCMMF) is engaged in the manufacturing and

marketing of milk and milk derivatives. Its product

portfolio includes milk (fat free milk, toned milk,

pasteurized flavored milk); ice cream (available in a

range of flavors); curd (butter milk, curd and

sweetened curd); cattle feed; beverages (flavored

health drinks); and sweets (cream roll). The company

manufactures these products, and markets them

through a chain of 5,200 retail outlets across Kerala.

Tamil Nadu Cooperative Milk Producers' Federation

(TCMPF) is an India-based dairy co-operative society.

The company produces and markets milk and other

milk-derived dairy products. The company runs 12 co-

operative unions 15 dairy plants in Tamil Nadu, India.

TCMPF produces and markets a wide range of dairy

products, such as skim milk powder, sweets, butter,

cheese, yoghurt, table butter, flavored milk, ice-

cream, UHT standardized

milk, and butter milk. The company markets its

products under the flagship brand Aavin.

The Gentle Giant: GCMMF With a massive muscle power, with a legendary

leader, crystal clear vision Amul (under the GCMMF)

leads the market. The brand is loved and adored by

all. Delving deeper we analyze the marketing mix of

the company which marks -The Taste of India.

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Product Amul follows umbrella branding strategy. Amul is the

common brand for most product

categories

produced

by various unions. By insisting

on an umbrella brand, GCMMF not only skillfully

avoided inter-union conflicts but also created an

opportunity for the union members to cooperate in

developing products.

Brand Description Products

Amul Milk It is one among the most

hygienic liquid milk

available in market.

Amul Gold,

Amul Taaza

Bread

Spreads

Amul is synonymous

with butter in India.

Margarine is a

commonly known butter

substitute and is

prepared exclusively

from vegetable oils and

fat.

Amul

Butter,

Amul Lite

Cheese Cheese is a good source

of Calcium and milk

protein.

Amul

Processed

Cheese

UHT Milk These are standardized,

long life milk.

Amul Gold

Milk, Amul

Taaza, Amul

Calci

Beverage

Range

These are easy to use,

delicious drinks that

refreshes immediately

with the goodness of

milk.

Amul Kool

Flavoured

Milk, Amul

Kool Café

Amul PRO It is malt based milk

additive(consumed by

directly adding milk) and

Amul PRO

a very tasty drink.

Ice Cream Amul Ice Creams are

made from fresh milk

and superior fruits and

nuts.

Amul Ice

Creams

Paneer It is equivalent to Cream

Cottage Cheese.

Amul Malai

Paneer

Dahi These curd products are

made from pasteurized,

toned milk.

Amul Masti

Dahi

Ghee Ghee is a source of

energy and provides

vitality to the human

body.

Amul Ghee

Milk

Powder

These are milk powders. Amul Spray,

Amulya,

Sagar

Skimmed

Milk

Powder

Nutramul It is malted milk

beverage(brown

beverage).

Nutramul

Mithai

Range

These are sweets. Amul

Shrikhand,

Amul Gulab

Jamun,

Amul

Basundi

Mithai

Mate

It is sweetened,

condensed milk.

Amul Mithai

Mate

Chocolates Amul chocolates are

made with goodness of

rich creamy milk and

delicious cocoa.

Amul

Chocolate,

Amul

Chocozoo

Fresh

Cream

It is low fat cream Amul Fresh

Cream

Pouch

Butter Milk

It is pasteurised butter

milk that meets PFA

standards.

Amul Pouch

Butter Milk

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Price AMUL’s business strategy is driven by its twin

objectives of:

Long-term, sustainable growth to its member

farmers

Value proposition to a large customer base by

providing milk and other dairy products at a

low price.

At the time Amul was formed, consumers had limited

purchasing power, and modest consumption levels of

milk and other dairy products. Thus, Amul adopted a

low-cost price strategy to make its products

affordable and attractive to consumers by

guaranteeing them value for money. Despite

competition in the high

value dairy product

segments from firms such

as Hindustan Lever, Nestle

and Britannia, GCMMF

ensures that the product

mix and the sequence in

which Amul introduces its

products is consistent with

the core philosophy of

providing dairy products at

basic, affordable price

to appeal the common

masses.

Amul is known for its

unwavering quality as all its

products come with high

quality standards. The products are all fairly priced,

not cheap or competitive, but fair. Prices are decided

by GCMMF. GCMMF prefers a lower price with

emphasis on efficiency in advertising. The price is

inclusive of several elements such as cost of milk,

labor cost, processing cost, packaging cost, advertising

cost, transportation cost, sales promotion cost, taxes

etc. In order to ensure that most returns from sales

went to the producers, the intermediaries have to

operate very effectively and on razor thin margins.

This turns out to be a blessing in disguise – the

operations remained very “lean” and started to

provide cost based advantage to the entire network.

Today Amul is a symbol of many things. Of a promise

to member farmers who are assured a guaranteed

purchase of all the milk that they produce at pre-

determined prices. Of high-quality products sold at

reasonable prices to consumers.

Promotion To be fresh, innovative and simple, Amul religiously

follows these parameters for its promotion. Enjoying

top of the mind recall, most customers demand for

Amul butter without a second thought.

The core values associated with Amul are:

Provide the best quality products

Value for money

Generating a loyal customer base

Social Responsibility

The umbrella branding has worked wonders for the

brand. Local promotions in the form of Below the Line

(BTL) is a major contributor to Amuls’ image.

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Scholarships like ‘Amul Vidya Shree’ and the ‘Amul

Vidya Bhushan’ helps 10,000 deserving students

across the country. The Amul food festival is another

example of community development carried out by

Amul.

Dr. Kurien via his legendary vision could picture it. A

150-min commercial outlining the core purpose and

highlighting

Amul’s role in the

society, Manthan

became a pioneer

of merchandizing.

The title track

continues to run

on television even

after 3 decades.

F(P)unnily enough

the polka dot girl continues to teach us taking things a

lighter vein. The hoarding with a tagline (still

functional) “Utterly, Butterly Delicious Amul” was put

up in 1967. Multiple marketing books emphasize on

the fact that a brand communicates values; this has

been personified by the Amul girl. However ban of

hoardings and the wide use of the English language

have limited the audience to which Amul reaches out.

The Taste of

India, created

the much

needed Halo

effect which

was

conspicuous by

its absence for

the Indian

Brands. A

showcase of

Indian talent,

collaboration for corporate positioning it is a

statement of immense power, made us proud to be

Indians. Affordable chocolates, pizza , ice-cream, Amul

does it all, has been doing it consistently for the ‘Aam

Aadmi’.

Topical advertisements link a brand to the trending

news; Amul creates a wider impact when the public

memory is fresh. Amul experimented with

‘Advergaming’ – a combination of advertising and

gaming to demonstrate its working to the customers

by creating a virtual parlor. The process of sourcing

could be under considerable threat, as the line of

business across generations is likely to change.

Place

Amul plans to open a store in every nook and cranny

of India by 2020, according to Mr. BM Vyas of the

GCMMF. Amul chocolates are sold as point of sale

products at several grocery stores. A potential exists

for distribution via:

Amul preferred outlets: Focused at milk, butter and

ice-creams, especially targeting college canteens

Amul Ice Cream Parlors: Even though the investment

is higher, the reach is higher target being families

Amul Railway Parlors: With the trust

enjoyed by the Brand name throughout

India these outlets are a smart way to

capture attention

Amul Kiosks: Increasing the reach of

Amul products even in the wake of

competition

Around 300 parlors are already supported and 4,500

Amul preferred outlets already exist in the country. In

the ice-cream segment Amul enjoys a 38% market

share due to its wide reaching network.

Opportunities and Challenges Opportunities

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The Indian dairy industry has some inherent strength

which opens up a number of opportunities in this

sector. India with the largest dairy cattle base in the

world, the cultural inclination towards keeping cows

which makes it a household practice is prevalent.

There is a huge demand for milk and milk products in

organized retail. Since, this sector is largely

fragmented and unorganized in nature; large dairies

have realized the need to implement backward

integration. Large corporates are also looking forward

to develop large herd farms to achieve economies of

scale. Also, a large part of Indian population is lacto-

vegetarians, for whom the only major source of

protein is milk/ milk products.

Challenges

There are a number of threats that the industry faces

today owing to rapid urbanization, unclear

government policies in certain critical areas and lack

of incentives. Absence of distribution and pricing

policy, non-existence of fodder policy, lack of control

on the growth of unproductive cattle and others lead

to a general lack of inducement. The challenges also

lie in providing for adequate green fodder for the

cattle and keeping the low quality animals away from

accessing high value resources. Reducing costs is also

a major challenge, which if achieved, will create

further opportunities for investors.

Marketing the Milk An inadequate basic infrastructure for basic

procurement and transport is conspicuous by its

absence. Marketing of milk is not done professionally

(other than Amul) and lack of professional

management of brands if any.

The unregulated sector forming the majority provides

ample opportunity to a marketer. However

malpractices abound as well especially adulteration.

Many intermediaries eat in to the profits of the

producers and dictate pricing policies as well.

Producers’ bargaining power suffers because of the

perishability of milk. On the other hand, it will be next

to impossible to market their milk in the absence of

these market intermediaries. The growth of dairy co-

operatives suffers payment issues, decision making

powers are confusing, and however, the co-operative

laws have inhibited leadership efforts, professional

management and the free functioning of the co-

operatives.

Conclusion The infrastructure for milk collection, processing,

packaging, pricing and marketing needs to be

improved to benefit more and more small farmers. By

reducing the number of middlemen between

producer and consumer, the consumer price payment

share to the producer can be increased. In other

words, bridging the gap between the producer and

the consumer can increase the producer’s share.

Furthermore, the future issues in dairy product

marketing are with quality, product development,

infrastructure support development, and global

marketing. Indian dairy industry is rearing to go.

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Mr. Robert Holdheim, the CEO and Managing Director, India at Edelman is a

veteran of Edelman’s Frankfurt, London and NY offices. Having handled important

accounts like UPS, Samsung, Tenneco and Corning, he has worked on corporate

positioning, Business-to-Business product marketing and crisis management, to

name a few. A BA from Cornell University and an MA from the Johns Hopkins

School of Advanced International Studies (SAIS), Mr. Holdheim has a vast

experience in Public Relations and Media Communications and shares interesting

insights about this industry and its contribution to business.

An Interview with Mr. Robert Holdheim

Managing Director of Edelman, India

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“In the Indian market cost is very

important, since it is much more

overvalued. So I think, most Indian firms

consider PR as exclusively media

relations and in that sense it is

commoditized and it is purely treated as

a cost factor and not as a profit factor,

not even as contributing to profit center

which makes it play a fairly minor role.”

Markathon: Compared to your experience in Europe

and America, would you say Indian firms give enough

emphasis to PR activities? What according to you are

the reasons for this difference?

Mr. Holdheim: That comes under the question of how

you define PR activities. I would say that given the

current definition of PR in India I wouldn’t probably give

it much focus either. PR in India now is somewhere

where US or Europe were sometime back when it was

purely media focus related. That makes it something

like a commodity and when a market is commoditized,

it gets pushed down and down and it purely becomes a

pricing game. And in the Indian market cost is anyways

very important, since it is much more overvalued. So I

think, most Indian firms consider

PR as exclusively media relations

and in that sense it is

commoditized and it is purely

treated as a cost factor and not

as a profit factor, not even as

contributing to profit center

which makes it play a fairly

minor role. Though it

changed in US and Europe

and it is also changing in

India and we are one of

the firms who are

pitching that change.

But when you look at a

broader definition of

PR, there are firms

who are giving it more

importance, giving us a

larger budget and asking

us to get involved in areas

where we weren’t working

previously.

So to round it up I think Indian companies do not give

much importance to PR but the problem is that they

have too narrow a definition of PR that they don’t have

an understanding of what a broader definition could

offer them.

Markathon: What advantage does a PR firm provide vis

- a - vis internal PR teams of an organization?

Mr. Holdheim: In a specific situation because the PR

firm is involved for a broader client base and different

types of activities, it is an experience thing. Many of the

people in the inside job are purely focused on the media

relations and as such because it is commoditized their

whole measurement is in terms of metrics; how many

pounds of clippings etc, not even looking at what is the

kind of value those clippings get to the organization. I

think the important part is to figure out to what extend

does the PR activity contribute to business objective

and not just communications objective. If you say your

objective is to set few metrics like pounds of clippings,

then you are basically setting

an internal performance

measurement system which

doesn’t add to the health of

the business at all. I would

say that in India in-house

jobs were viewed higher

than agency jobs. But I

would say now working

in an agency can give

you somewhat

broader exposure

than what an in

house job can offer

because some of

the functions we

do are not done

in the

communications

department of the

companies. So the

communications

people, say from marketing background, have much

more to learn from a PR firm like ours.

Markathon: Can you list few of the things that you do

which the internal marketing or communications team

doesn’t do?

Mr. Holdheim: Digital communication is a classic one.

Another is crisis management which automatically gets

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pushed up to the CEO’s office. Another is marketing

communications, product communications, it is not just

informing about your offering but it is more like an

integrated marketing approach. To explain it is 10 sec,

imagine four concentric circles. These are four channels

that we see. At the center of these circles you have

content and you have search. And each circle runs a

different channel through which it can push the

content. One is traditional media such as newspaper,

Television, broadcast. Then we come to the hybrid

media which forms the blogs. This is digital media but

hybrid. Third is social media, twitter, facebook. And the

fourth is owned media, things like your own website.

From our perspective, content is the basis of the

program and is pushed through any or all four of the

channels. And all four of those channels should be

addressed. So while digital communications in India is

seen as a job of the advertising firms, what they are

pushing out is very different than what we are pushing

out. So in my premise, create content and push it up

through all possible channels, each of these channels is

linked to a somewhere else within the corporation and

that puts us in touch with different budgets as well as

different target audiences within the firm.

Markathon: Edelman has recently launched two new

tools to identify and recognise who is influential on a

particular topic on blogosphere and twitter. How

authentic is such information and how effective, in your

opinion, are such tools?

Mr. Holdheim: Everything about social media is new, so

we are trying to figure out what metrics have we

measured, have we best reached the right people, on

the foot side of all this is that we don’t know which

people have influence and which don’t and you don’t

want to spend your time talking to the wrong people.

Now take my premise that PR today is about

engagement and not just about media relations, but

public engagement which includes engagement with

different stakeholders. Let me take an example, the

difference between PR and advertising has been that

advertising is a one way medium of communication, it is

about conversations, engaging with the audience.

Obviously social media is an incredible tool in advancing

that concept. Now how do you figure out how to

engage with the right people. When we launch a

product or do a press release, you would hope that we

get it on paper and somebody would be reading that

paper, that is how it used to work previously. Now, you

have to think about throwing a rock into a river and get

a ripple effect. So before launching, let us say we are

launching a PC or a laptop or something that plays

music. Let us say we have a piece of hardware, we will

look for a platform through which we can communicate

to people. Let us say the platform is music, we target

young audiences who can be targeted through music.

Now we look into influence within that platform and

influencers today is no longer government people or

things like that. In this case it maybe a rock band. So we

take the piece of hardware, go to the rock band, we

give it to them, we let them play with it, listen to it and

then they start tweeting about it. And then each of

them has their own following and all. While this whole

process is going on we film it and then we put that film

of these famous guys talking about our product on

youtube. So what you are seeing is the concept of ripple

effect. So at each stage the influencer reaches out to

their direct target audience and so on and you can

measure that and you can talk about that.

Now to get back the question, where tools at blog level

come in is that they are much more useful, not in

identifying influencers but in confirming that the

influencers we have identified are the right people.

Because these tools measure various factors like how

often you interact with people, not just posting. They

give you an influencer score which basically allows you

to say that convincing people through this person that

your product is good is much more likely to happen

than finding out through other person who has a much

lower score. So we have these incredibly useful tools

just to confirm that the influencer we are engaging with

are indeed effective and it will be beneficial

communicating through them.

Markathon: Can you share with us some of the

challenging and interesting tasks/projects which you

undertook at Edelman.

Mr. Holdheim: I started in this industry long time ago in

the early 90’s in Europe. In the mid 90’s I was in London

Vartalaap markathon|october 2012

23

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then I left for 10 years when I was marketing consumer

products. Then when I came back in 2006, the entire

industry had changed. So what we were doing was

much more strategic. For example, when I came back

the first client that I took up was a professional services

firm. They basically were considered at the top of their

industry but they were essentially interchangeable with

3-4 other firms. So basically everybody knew them but

nobody could differentiate them from anyone of the

others. So the assignment was to develop a plan which

would elevate them from being one of 4-5 to being the

one, you know to make them the McKinsey or Goldman

Sachs, where they stood out in their industry. I love that

work, it was challenging, it was strategic, it involved

working with absolute top of the organization

specifically the CEO. It allowed us to start with a clean

slate and think what can we do to create an impact.

What channels can we use, they allowed us to be really

creative and look at almost anything to have an impact

on the perception of the people of that firm. That was a

good one.

Another good one, is the work we do in US on behalf of

the Dove brand, the campaign for real beauty. And

what I love about it is that it starts with a direct

engagement with the consumer base via digital. It starts

out with bringing in inputs directly from your consumer

and then develops into a platform which has social and

CSR elements. It has elements in product marketing,

then advertising comes in and then follows a long

behind PR. So you have a fully integrated plan based on

a big platform which gives you opportunity to engage

directly with the customer, to engage with the

organization, to engage with media and just about any

stakeholder, all integrated into a single platform. That’s

what I love about it.

Markathon: After the facebook IPO came out, a lot of

people didn’t realize the ROI on spending in social

media. Do you think spending in social media is

important or you can engage the way you want without

spending on social media?

Mr. Holdheim: I find social media a lot more buying for

the buck than advertising. Advertising is basically

popping up an ad and hoping that people are going to

see it and get influenced by it. Through social media you

are directly connecting with the people you seek to

influence and as long as you play by the rule and you do

it correctly, it is also accepted. You know instead of

pretending that you are someone else, then spam, then

that backfires on you. But here is an opportunity to

connect directly with the stakeholders and use their

influence on others. Social media is a dream to Public

Relations. What is Public Relations? Public Relations is

basically communicating to different stakeholder groups

with specially customized messages. Now when ad

agencies use social media it tends to be more

advertising messages, more push messages, where as

PR is about developing conversations with the

stakeholders. The people should be talking about you,

online or anyways. Lot of clients are very nervous, they

say we don’t want to be there so we are not going to

look at it. The point is not looking at it doesn’t mean it’s

not there. People are talking about you anyways, the

choice is not about whether you want to be there or

not, it about what do you want people to talk about,

either it can be a quality conversation or can be

something random without any inputs from your end. I

strongly believe that it is absolutely necessary for

companies to be there on social media.

Markathon: PR still being in a stage where it is

misinterpreted by many, what would be your message

to people aspiring to be a part of this industry?

Mr. Holdheim: From a PR guy’s perspective, I would say

that whatever you do, keep in mind the business

objective, not the communication objective. If business

objective is to sell product, then communication needs

to support that objective. An awful lot of people think

of PR and media relations as an end in itself, but if this

doesn’t align with business objective then why do it.

24

Vartalaap markathon|october 2012

Page 25: Markathon October 2012

war zone | eye 2 eye markathon | june 2011

“Brand Genericide: A Boon or a Bane?”

death does add a sinister edge to the entire affair. A case

in point would be what happened to Hormel Foods’

trademarked square canned ham “Spam” that was

eventually hijacked to mean any unsolicited email and

now forms a part of urban lexicon. But what remains not

so evident is the opportunity that this consequence of

the sheer popularity of the trademarked product and

brand recall present to the company. Microsoft’s search

engine “Bing” was launched with the objective that

someday, this nomenclature may stand to be

tantamount to Web Search à la Google. In other words,

planned genericide has already made an entrance in the

arena of branding strategies. Common sense dictates

that brand genericide befalls those brands whose names

have become so deeply intertwined with popular culture

that the name and product category have merged. This

cannot possibly be derogatory as every company seeks

to dominate its category. However, the oft proven fact

standing out in stark contrast to the brand popularity is

the inertia that such commanding brands exhibit

wherein they do not feel the need to highlight the

distinguishing features of their products. It is here that

the solution to Brand Genericide lies. As wildly

successful companies like Apple, with its “I” range of

gadgets, every single of which were pre-empted by

Apple’s predecessors, have demonstrated, their success

mantra lies in fretting over details, continuously

innovating to bring out subtle yet vital changes and

building a brand strategy to communicate such

differentiators to the target market.

If yes, you’d better know that by speaking sentences

like these, you may be touching the raw nerve of the

concerned companies- in this case, Xerox, Bayer

(aspirin) and Johnson & Johnson (band-aid)- all of

which have been a victim of Brand Genericide.

A brand turns generic when it becomes synonymous

with a general class of product or service and people

start using it as a common noun or a verb. The fact

that their brand names are being recognized and

used by millions around the world is something that

any organization would be proud of. However, ‘too

much of a good thing’ can spell trouble in this case,

as the trade name becomes so common that it

ceases to exist as a brand name. No organization

would want its products to become too popular for

people to start using its trademark colloquially. For

the company which strives to maintain the

distinctiveness and uniqueness of its brands, brand

genericide can cost dear, both in terms of revenue

and reputation. As Wendy Lomax, Professor of Brand

Marketing at Kingston University puts it, “If Guinness

are spending £10m on a single advert, the last thing

they want is for people to be using the word

Guinness to mean any kind of stout.”

No wonder then, that organizations make a

conscious effort to ensure their products don’t

become generic. So the next time your friend flaunts

his brand new tablet, get your facts right before you

remark “Wow!!!This iPad seems slicker.”

Topic for the next issues Eye to Eye: “With Samsung and Apple starting it again, does comparative

advertising help increase business?”

Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is

15th October, 2012. Include your picture (JPEG format) with the entry.

Payal Pathak

XIMB

Brand Genericide-a term

conceived by marketers to

denote the process whereby a

brand or a registered trademark

starts defining an entire product

category to such an extent that it

loses the privileges of trademark

protection-can be very

distressing for parent

companies. It is understandable

that the “cide” suffix denoting

“The Xerox (and not

Photocopy) didn’t come out

well.” “I was so thirsty, that

even a bottle of Bisleri (and

not packaged drinking

water) could not quench my

thirst.” “The Band-aid (and

not Bandage) came off

within just a few minutes

after I had applied it.” Have

you ever found yourself

“Gen

eric

ide

can

no

t p

oss

ibly

be

der

og

ato

ry a

s ev

ery

com

pa

ny

seek

s to

do

min

ate

its

cate

go

ry.”

“N

o o

rga

niza

tion

wo

uld

wa

nt its p

rod

ucts to

beco

me to

o p

op

ula

r for p

eop

le to sta

rt usin

g its tra

dem

ark co

lloq

uia

lly.”

Rohit V Tiwari

Welingkar Institute of

Management

war zone | eye 2 eye markathon |october 2012

25

Page 26: Markathon October 2012

war zone | silent voice markathon | april 2012

15

NEXT THEME FOR SILENT VOICE: “Maruti Alto 800”

LAST DATE OF SENDING THE PRINT AD: 15th October, 2012 EMAIL ID: [email protected]

Send your entry in JPEG format named as SilentVoice_<Your Name>_<Institute>only.

Silent Voice

LAST MONTH’S RESULTS

Theme: “Google +”

WINNER: MANDAR SONAVANE | Great Lakes Institute of Management

Congratulations!!! He/She receives a cash prize of Rs 500!

Divya Priyanka| Welinkars, Mumbai

HONORARY MENTION

war zone | silent voice markathon | october 2012

26

Page 27: Markathon October 2012

specials | ADdicted markathon | january 2012

PRODUCT # 1: Micromax Ninja

POSITIONING: Why Y?

TARGET AUDIENCE: Youth

AD AGENCY: Lowe Lintas

CONCEPT:

The TV Commercial opens with a girl mocking a man

telling him “Itna bhi nhi pata, Uncle” when soon she

herself is made fun of by her friends for having an

outdated phone with a small screen but all the points

thereafter that her friends tease her which revolve

around one and only point and i.e. the small, compact

shape of the phone such that it might improve her

concentration, prevents others form viewing the

messages, and so subsequently was cheap too etc.

VERDICT:

Catch/Miss- Miss

Firstly, the ad begins at a different note which does

not really have much relation to phone. The fact that

lady flaunts her knowledge mocking people was

concluded on the phone she had rather the small

screen, compact phone she owned which to me

nowhere correlates to the relativity tried to portray at

the end suggesting the use of Micromax Ninja so as to

get better speed with an android 2.3 and a 1 GHz

processor. Of course not to forget screen size of 10.1

and 8.9 in Ninja 4 and 3.5 respectively with fairly

cheap price also not really fall coherent into all the

portrayal of what exactly was the definition of cheap

to argue the same on her previous phone which (if

you notice) also seems to have a decent size not like

the really old style of phones.

YOUTUBE LINK:

https://www.youtube.com/watch?v=hAS04YwFoGw

Ad-dicted

Umang Kulshrestha | IIM S GSN Aditya | IIM s

PRODUCT # 2: Jabong.com

POSITIONING: Delivering lifestyle

TARGET AUDIENCE: Brand Conscious Urbanites

AD AGENCY: Salt Brand Solutions, India

CONCEPT:

The Ad shows a wife accusing Jabong.com for turning

her husband into a shopping fanatic. Much to her

dismay, her husband has turned the house into one

huge sports room thanks to Jabong.com. The Ad

shows how Jabong.com has helped him find a wide

array of sportswear and sports equipment with

relative ease. It also conveys that it has free door

delivery and a free-return-policy.

Most importantly, the Ad depicts that it’s not just

women, but even men can be crazy about shopping.

VERDICT:

Catch/Miss- Catch

This month saw the launch of TVCs from three online

retail portals which are Flipkart, Tradeus and

Jabong.com. All the Ads are conveying the same core

message of “Convenience of online stores”. Flipkart’s

Ads have been very successful over the past. The new

Ad continues the theme of “Kids playing the role of

Adults” and it continues to appeal to the audiences.

However, Jabong.com’s latest Ad scores over the

others simply because it is very funny and crisp. Also,

Jabong.com does not burden the viewer by displaying

diverse product ranges. It is simply directed at the

sports and apparel segment for men.

Simply put, it is very well focused despite retaining

the humour element.

YOUTUBE LINK:

http://www.youtube.com/watch?v=xhDOIOKx9Es&fe

ature=relmfu

specials | ADdicted markathon | october 2012

27

Page 28: Markathon October 2012

Predictably Irrational

(The Hidden Forces That Shape Our Decisions)

- Dan ariely

Harper Collins Publications | Price Rs.236

Review by SOWMYA R

Observe the two designs above. Clearly, the orange

circle on the right is bigger than the one on the left

right? Look closely and you will realize they are the

exact same size, and what makes them look different

are the circles around! Often our decisions are based

on our perceived relative advantage of one thing over

another. Dan terms this decoy strategy. Think Decoy,

think Tom Sawyer’s shrewd method of getting his

friends to paint his fence, by making them believe it was

a privilege to do so !

Predictably Irrational is a delightfully engaging book

that rationalizes the irrational decisions and actions we

take by exploring some fundamental aspects of the

human psyche.

Summary

Why does the word FREE! evoke a surge of excitement

within us? Why does a costlier medicine seem more

effective in alleviating pain? Why does working for a

cause get more efforts than working for cash? What we

call perceived value, behavioural economists term “the

placebo effect” . In the words of Dan, this is the age of

modern democracy, where the issue is not a lack of

opportunity but a dizzying abundance of it. While some

of us may choose conformity over non-conformity in

our selections, some others may wish to be different

from the crowd. But irrespective of this difference in

our personalities, each of us is as predictably irrational

as the other in our decisions!

Organization and Insights

Organized into 13 chapters, the book is essentially a

narration of a series of behavioural experiments

conducted across various groups in various settings.

Each experiment unravels a pattern, of the influences

and hidden forces that shape our decision making.

It would not be justice to reduce these wonderful

experiments to a few sentences in this review. Instead I

will attempt to discuss certain key insights the book

provides. It is up to you to take these as pointers for

you as a marketer, warnings to take heed of as a

consumer or just a guide to take better decisions as a

person.

The Fallacy of Demand

The basis of conventional economics is that supply of

goods should match the demand for them, and demand

is the driver for any new business, product or process.

But what if this very basis was flawed? This is better

explained through the concept of “Arbitrary Coherence”

, i.e the consumer decides both present and future price

based on an arbitrary initial price. This can be extended

specials | bookmark markathon | october 2012

28

Page 29: Markathon October 2012

for the features we look for while buying or the place

we buy it from as well.

The Ikea Effect

It is an interesting phenomenon that states that “pride

of ownership is inversely proportional to the ease of use

of that product”. While taking ownership of

responsibility is difficult for us, we often assume

ownership for items even before we own them, and this

virtual ownership is greatly influenced by advertising.

When was the last time you used a product for 30-days

and returned it despite having a 30-day money back

offer? Probably never, because you get accustomed to

it or perceive the return as a loss!

Dr.Jekyll and Mr.Hyde

Why do we behave differently under different

circumstances? Our behaviour is governed by emotions

and emotions are at times not under our control! How

many times have you purchased something only to

realize you never needed it in the first place? Emotional

trigger is like speaking under the influence of a heavy

dose of alcohol and the influencer of our irrational

decisions that are oh-so-predictable!

The book discusses these and the influence of many

more factors ranging from arousal, expectations,

character, choices and procrastination to the conflict of

social norms vs market norms on our everyday

decisions.

Verdict: 5/5

The verdict is fairly predictable. It is a page-turner that

makes you question the very foundations on which you

base your decisions. It is a book for everyone, a

pleasure to read and a strong reminder of how

irrational humans are. As I said, it is up to you to decide

how you want to use the lessons gained from the book-

to become a better manager, a better marketer, an

informed shopper, or most importantly a wiser person.

Bottom-line

It is not every day that you get to read a book that

mirrors not just your life but the lives of those around

you! Is it really worth a read, and as good as I claim it to

be, or am I just being predictably irrational to justify my

choice of this book? Well, you have to read it to find

out, don’t you?!!

specials | bookmark markathon | october 2012

29

Happy Reading!!

Page 30: Markathon October 2012

Brand Story: Intel

Swati nidiganti | IIM S

Many years ago, few would have cared to know the

microprocessor inside your computer and the engine

inside your car, even though both are undoubtedly the

most important part of the overall system. This has

been the saga of industrial brands struggling to study

the demand derived from the end consumers. Intel

revolutionized the

industrial markets by

stimulating demand

at the end consumer

level.

Started in 1968,

Intel’s core business

challenge was to

replace the bulky

magnetic memory

with smaller, better

performing and less

energy consuming semiconductor memory. It was later

in 1971 that Intel created its first microprocessor chip

4004, soon followed by the 8008. The turning point

came in 1981 when Intel’s 8088 was selected for IBM’s

first PC. As the PC market gained momentum, Intel

shifted focus from memory to processors and made ICs

its primary business. That initiated series of innovation

in the form of 286, 386, 486, Pentium, Celeron, and so

on.

Named among the top ten brands with the likes of Coca

Cola, Disney and McDonald’s, Intel transformed from

being a product to a brand in 1990’s with the launch of

its widely famous ‘Intel Inside’ program. In order to

properly communicate the benefits of the processor to

PC buyers and build long-term brand equity, Intel’s

focus shifted from being PC manufacturers to the end

consumers, while raising awareness of its name. Dennis

Carter, the marketing manager of Intel, spearheaded

the Intel Inside coop marketing program. The heart of

the program was an incentive-based cooperative

advertising program. Intel would create a co-op fund

where it would take a percentage of the purchase price

of processors and put it in a pool for advertising funds.

Available to all computer makers, it offered to

cooperatively share advertising costs for PC print ads

that included the Intel logo. For PC manufacturers, it

not only gave a

cushion for their

advertising expenses

but also acted as an

assurance that their

systems were

powered by the latest

technology. Launched

in 1991, by the end of

that year, 300 PC

OEMs had signed on

to support the

program.

Once the OEM program was underway, Intel went

ahead with the entire branding and advertising exercise

like any other consumer company. A new logo was

designed and print advertisements were launched to

explain its significance to the customers. Television

advertisements using state-of-the-art special effects

were released for the first time, with emphasis on

speed, power and affordability. Sonic branding was

used and the unique five tone melody helped build a

strong brand recall in the customers’ mind even to date.

In 2008, Intel took the campaign a step forward and

shifted focus from traditional media such as television

and print to newer media such as the Internet.

Intel's innovative marketing helped increase awareness

of the PC and paved the way for computers to become

more common in homes, emerging as a business,

entertainment and education tool. For a product which

the consumer hasn’t seen or touched, it is an

achievement indeed!

specials | brand story markathon | october 2012

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specials | updates markathon | march 2012

12

BRAND LAUNCH

Apple launched iPhone 5

Apple introduced its 6th model in the iPhone line

up named as iPhone 5 which is definitely better

than the previous version in terms of bigger

display, enhanced camera, improved battery and

thinnest form ever. The charm and excitement is

slightly on the lower side this time unlike the

launch of previous versions because the

competition was never that intense. Some of the

competitors are now able to offer few better

features at much competitive prices.

Nokia unveils Lumia 920 based on

windows 8 platform

‘Most innovative smart phone ever’ as claimed by

Nokia, is the first smart phone using Windows

Phone 8 as its operating System. The phone looks

promising as it has some unique features like

wireless charging, advanced floating lens

technology, augmented reality apps etc. Although

chances to give a dent to market leaders such as

Samsung and Apple are bleak but still eyes are

curious to see if the magic can happen.

Renault launches new sedan, the Scala

Renault version of Sunny from Nissan is launched

as Scala in the C segment of Sedans to take on Cars

like Ford Fiesta, Hyundai Verna, and Nissan Sunny

etc. The Renault Scala has both petrol and diesel

versions and is in the price range of 6.99 lakhs to

9.57 Lakhs (ex-showroom Delhi).

Mercedes Compact car, a unique

proposition in India

The long awaited B-class from Mercedes-Benz has

been launched by the company to take on its rivals

like BMW and Audi. The car is first in its segment

which is called as sports tourer rather than the

normal hatchback because the car offers the size of

a compact car but the power similar to that of a

SUV. The target segment is the young professionals

who want power and ruggedness in a compact

luxury model.

BRAND WATCH

Cavin Care ropes in Parineeti Chopra as

brand ambassador for ‘Spinz’

Being embodied as contemporary girl of today

Cavin Care, personal care brand has appointed

Parineeti as the brand ambassador of its deodorant

brand. Parineeti Chopra, the emerging youth icon

as the brand ambassador justifies the correlation

between the brand’s value and her style, attitude

and appeal.

Sonata Unveils touch screen watches

After watching breakthrough innovation in mobile

handset segment, it’s time for watches. “Sonata”,

the brand under Titan industries launched its first

ever touch screen wrist watch under its super fibre

ocean series. The most crucial proposition is its

introductory price which puts it within the reach of

major chunk of Indian consumers. The watch

comes at a starting price point of INR 1499.

Akshay Kumar as the brand ambassador

for ‘Sparx’ from Relaxo

Age still doesn’t seem to be the hindering factor

for Akshay Kumar who is still perceived as an iconic

youth of India and probably this is the reason

Relaxo has signed Akshay Kumar to further

specials | updates markathon | October 2012

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specials | updates markathon | march 2012

12

intensify its association with the youth target

segment. Through the 40 sec TV commercial where

the celebrity is endorsing the foot wear, Relaxo is

showcasing style and youthfulness with Sparx.

Walmart to open stores in next 12-18

months

After the big ticket reforms announced by the

Government which includes permission of

investment up to 51% in multi brand retail from

multinational retailers, Walmart is proactive

enough to open stores in states which allow the

investment. The company expects to continue its

current partnership with Bharti enterprise to

execute its plan for the future.

MEDIA

Samsung starts a satirical campaign

against iPhone

Samsung has launched a direct attack on iPhone 5

customers through its latest ad. The offering with

many attributes like bigger screen, NFC etc. seeks

to convince customers, that Galaxy S3 is better

than iPhone 5. The strapline in the ad is “The next

big thing is already here”. Even the ad ends with

the statement from an iPhone lover who out of

irritation boastfully claims to wait for the next

iPhone to have these outstanding features of

Galaxy S3.

Click here to watch

Mindshare, the big winner at Spikes Asia

2012

In Spikes Asia 2012, the advertising festival held

few days back in Singapore Mindshare India was

declared to be the media agency of the year. The

title seems to be bagged for its work in Unilever

brands such as Kissan, Rin and Bru. In the same

festival, Taproot was allotted second place for

independent agency of the year.

Career360 aims to become largest

complete career magazine

Career360 which wants to become the largest

career counsellor in India is expanding to reach out

to more students by leveraging its content after its

integration with digital initiatives. The company

currently has two portals, one for engineering

college aspirants and other for students who wish

to study abroad.

AD WATCH

Havells releases two new ads for wires and

geysers

Havells has come up with 2 TV commercials one for

its sub-brand “Statdard” and other for its geysers

both of which are created by integrated

communication solutions provider, Lowe Lintas.

The standard wires ad emphasis on the capacity of

the wire to handle overload situations whereas the

geyser ad showcases that the geyser consumes

very less energy even if it is switched on for entire

day.

Click here to watch

Click here to watch

Toyota Etios Liva’s brand new world

To make the competition more intense in the

compact car segment where almost all the players

are fighting to share the pie, Toyota has come up

specials | updates markathon | October 2012

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specials | updates markathon | march 2012

12

Articles are invited

“Best Article”: Esha gupta | tapmi

He/She receives a cash prize of Rs.1000 & a letter of appreciation

We are inviting articles from all the B-schools and corporates of India. The articles can be specific to the regular sections of Markathon which includes:

Perspective: Articles related to development of latest trends in marketing arena.

Productolysis: Analysis of a product from the point of view of marketing.

Strategic Analysis: A complete analysis of the marketing strategy of any company or an event.

Apart from above, out of the box views related to marketing are also welcome. The best entry will receive a letter of appreciation and a cash prize of Rs 1000/-. The format of the file should be MS Word doc/docx.

We’re inviting photographs of interesting promotional events/advertisements/hoardings/banners etc. you might have come across in your daily life for our new section “The 4th P”.

Send your self-clicked photographs in JPEG format only. The last date of receiving all entries is 15th October 2012. Please send your entries marked as <ARTICLE NAME>_<SENDERS’ NAMES>_<INSTITUTE> to [email protected].

with “Brand New world” for its only hatchback in

India, “Etios Liva”. The experience of riding the car

is compared with entering a new world which is

unpacking new things every day.

Click here to watch

Pepsi’s new T-20 world cup advertisement

With the bang, Pepsi has launched its TVC covering

top cricket players along with the Bollywood star

Ranbir Kapoor who is quite famous after his block

buster movie “Barfi”. The T-20 game is portrayed

as the game without respect where the sole motto

is to defeat the opponent which is reinforced with

the ending comment “baja ke aana” from Ranbir.

Click here to watch

Kurkure extends the product range with

“Kurkure Puffcorn”

In order to remain at forefront of product

innovation, Pepsico has expanded the range of

Kurkure to ‘Puffcorn’. The company has rightly

targeted the kids segment through the TV

commercial where the kid is shown applying

notorious tactic to grab the packet of Kurkure

puffcorm from his friend.

Click here to watch

specials | updates markathon | march 2012

specials | updates markathon | October 2012

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Please send in your comments/feedback to:

[email protected]

Visit: www.iims-markathon.in

© Team Markathon, IIM Shillong