MarkDarshak - Jan 2012

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Quarterly Marketing Magazine of NITIE

Transcript of MarkDarshak - Jan 2012

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Greetings,With the release of the first edition of the magazine for the year 2012, we are moving forward with our activities for the year and it gives me immense pleasure and satisfaction to be the Faculty Advisor of MiG, the Marketing Club of NITIE. MarkDarshak has given me an opportunity to work with stu-dents and advance with the common goal of learning and practicing the art of marketing.

As always, MarkDarshak brings you something new this time around also. The current magazine deals with the world of surrogate marketing, which has become more prominent in the present times. Themes and matching ar-ticles aside, this issue also has a plethora of articles by students about various developments in the world of marketing.

I applaud the effort of MiG for their undying spirits. I hope they take the magazine to greater heights, and also hope that this issue will entertain you and keep you engrossed about the recent happenings in the world of market-ing.We look forward to your comments and wish to bring out more interesting issues in the future.

FOREWORD

Prof. Dr. Amitabha DePatron

Editorial BoardDeepak JhaRamit Goyal

Rubayet ChakrabortySarath Kurup

For suggestions, contact us at : [email protected]

Prof. Ashok K. PundirConvenor

Faculty AdvisorRanjan Chaudhuri

Ranjan ChaudhuriFaculty Advisor

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Marketing 3.0 Collaborative tools such as social media are changing the ways of marketing. These days’ people are talking to each other using the so-cial media and believe in the opinion of the cus-tomers more than that of marketer’s about the product. Therefore the product should be good enough to meet the emotional and the rational needs of the customers. Some of the major cat-egories that constitute Web 3.0 marketing are Micro-blogging, Customization and Personal-ization, Mobile-cum-Internet-cum-TV sharing space on single screen, On-Demand collabora-tion among users, and Virtual reality settings.There are various pricing concepts and compa-nies which have evolved due to advent of the Marketing 3.0. Some of them are shown in the below grid.

And therefore customers collaborate so as to raise the order size and volume of purchases which in turn helps them to avail discounts.

Example: The groupon.com is directly negotiat-ing with the manufacturers if a certain number of people are willing to buy a product.

Auction Pricing: The product is auctioned and the buyers are to bid up the price from a low price point and thus the product will sell to the high-est bidder. It is a dynamic pricing model, and in-corporates strategies based upon game theory for setting and bidding of prices.

Group Pricing: The group pricing gets advantage from the greatest tool of the marketing 3.0, col-laboration. People these days want the product at a discounted price People are not willing to wait for the dis-count season to start and want the discount as soon as they like the product.

Example: The Google uses auctions to sell a par-ticular keyword and the highest bidder gets the place in the sponsored links on the Google search page.

EMI Pricing: The advantage of the EMI pricing is that it allows you to pre purchase a product and pay over next couple of months, in many cases without paying anything extra.

Example: Levi’s Jeans was the first apparel brand to start the EMI pricing in 2009. The customers have to purchase a minimum of Rs.1500 apparel from an exclusive Levi’s store and can convert the purchase into in 3 month 0% EMI.

Automatic Markdown: Automatic markdown, combination of fixed pric-es and auctions, for a product gives customers a schedule of prices which decrease with time.

Pricing Strategies

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The disadvantage of the concept is that the cus-tomers will be thinking of coming later to buy the product at a discounted price. The advantage is that the customer may think that someone else may buy the product at a lower price and this feel-ing of competitiveness motivates the customer to buy the product.

Zero Pricing: It includes bundling of products and services in such a way that the marketing proposition to the consumers is that you make purchase for one of the bundled goods and you receive the other for free along.

Example: Videocon came up with zero paisa tariff plan for calling, i.e. if you buy the Video-con phone, you get along to make some 30 min-utes of free local calls every day. Here the price of the everyday calls has already been built up in the purchase cost of that particular Videocon phone.

Negative Pricing: It is one in which the company pays the consumer every time the customer uses the product or service.

Example: Microsoft offered US$ 850 for each user of on-de-mand ERP to switch over from NetSuite to Microsoft’s Dynamics family of business applications.

Economic, Social and Environmental Price: This is where the next revolution of pricing lies in. These pricing models, in addition to economic price paid by a consumer for consuming a prod-uct or service, are built on social cost and envi-ronmental cost that is incurred by the consump-tion of that product or service.

Example: If a person buys a McDonald burger, then the price can include social cost of say obe-sity (in terms of extra calories consumed than re-quired) and environmental cost say because of the tissue paper and paper cup used in the process of consumption.

Ankit YadavPGP-2 IIM Indore.

Mayank GoelPGP-2 IIM Indore.

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AmulAdvertising Campaigns

tterly Butterly Delicious!!!!” goes the tag-line and the first name that comes to our mind is Amul; the brand that revolutionized the Indi-an dairy industry and brought about, the White Revolution in India. Today, nearly 55 years after it was launched, Amul is the largest food brand in India and the world’s Largest Pouched Milk Brand with an annual turnover of US $2.2 billion (2010–11). Though, Dr. Verghese Kurien’s contribution is incomparable, a large part of the brand’s suc-cess is because of a thumb-sized, round-eyed, chubby-cheeked girl wearing a red polka-dot-ted frock, who climbed onto the hoardings in 1967 and cast a spell on the masses!

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The blue-haired Amul moppet, as she is called, was created by Sylvester da Cunha, then MD of ASP, an advertising agency, in 1966. He along with Eustace Fernandez, created the Amul girl to counter the rival firm, Polson’s butter girl.

They came up with the tagline, “Utterly But-terly Delicious” as a positioning statement to signify that Amul butter is made from the best quality milk and has just the right amount of salt added to it, which makes it delicious.

The first advertisement went up on a hoard-ing at Charni Road, Mumbai in the summer of 1967. It was the premiere of Indian advertising’s most deliciously funny creations and the coun-try saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry & everything else.

Immediately after her launch, she evolved into a ‘pun’-loving star and has captured the atten-tion of millions of Indians for more than four decades now. The girl has dealt with all the con-temporary issues - be it politics, sports, society, entertainment, art, weather, infrastructure, sci-ence or technology. The Amul girl has always had something to say about every issue that’s puzzling the nation.

Butter is an essential part of breakfast in almost every household and people do discuss the cur-rent affairs on the dining table and Amul man-ages to capture these moments by showcasing the connection in their advertising. It is topical. If we take a look at the archives of the Amul ads, we can actually see India changing right before our eyes. The campaign is, in fact, a hu-morous take on everything that has made India what it is today.

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Through all the events taking place in the coun-try, Amul always had a reply to it. For example, the above print depicted the launch of Tata Nano - India’s smallest, cheapest car!

Amul’s advertising strategy has followed the con-cept of ‘Umbrella Branding.’ Amul is the com-mon brand name for most of its products across categories. For instance, the Amul girl has also been used to advertise Amul ghee and milk.

Its ad campaign ‘Amul doodh peeta hai India,’ conceptualized & created by FCB-Ulka, was drafted to proclaim its leadership position and was targeted at people across all income catego-ries. Their corporate campaign – The Taste of In-dia caters to people belonging to all walks of life & across cultures. It is circled around a one day old child who needs milk as much as to a dead man who needs ghee.

Amul believes in mouth-to-mouth publicity by their consumers. They spend less than 5% of their revenues, on advertising! The longest run-ning advertisement campaign, which also holds a Guinness World Record, attributes its success to many reasons, few of them being, simplicity, consistency, humor and variety.

Amul has evinced the interest of Indian audi-ences for its unique blend of humor, satire, great illustrations and the ability to draw everyone’s at-tention to the dark side of current events with a funny twist. It does not belong to an era, but has evolved with time.So, Amul is truly, the Taste of India” in every sense!

They have always kept themselves up with the dy-namic consumer minds & understood the needs of Indian people. They are informative and in-stantly connect with the audience.

Anurag Iyer 1st Year PGDM (2011-13) Prin. L. N. Welingkar Institute of Management Development and Research, Mumbai

Rahul da Cunha, Creative Director, da Cunha Associates , writer Manish Jhaveri and illustra-tor Jayant Rane are the team that brainstorms to chalk out the weekly advertisement. With catchy on-liners, they make the audience think on the respective issues.

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STEALTHmarketing

the art of deception

Stealth marketing can be described as a covert form of marketing where, neither the marketing intentions behind the cam-paign are obvious, nor is the identity of the marketer revealed. One of the first instances of stealth marketing was actually a psychological experiment. During the course of a movie, the Coca-Cola logo was flashed on the screen for a fraction of a second, such that it went largely unnoticed by the conscious mind. But it had registered in the subconscious. During the interval snack break, a steep increase in the purchase of Coca Cola, compared to the daily average was noticed.

Setting up third party websites, profiles or creating seemingly anonymous videos is a great way to create stealth marketing campaigns online where easy and cheap resources offer a plethora of opportunities to catch people’s attention. Marketers often have their own people comment or post as a consumer for products on review and discussion forums. From posting glowing reviews to a movie that has taken in mediocre reception from the critics to posting favourable and satisfied opin-ion posts about a newly launched technological gadget, marketers indulge in various forms of unethical stealth marketing online.

A big risk in some of the bolder stealth marketing campaigns, where the customer is not supposed to realise that he has been part of an elaborate set up for a marketing campaign is that it may generate negative feelings about the brand/prod-uct. Basic human psychology states that a person does not like to feel cheated or being at the wrong end of a scam/prank. The ideal situation is to leave the consumer feeling he has had the upper hand in an encounter. But Viral Marketing cam-paigns, some of which are often judged as stealth marketing campaigns, are different. Here part of the allure is to try and guess the source of the marketer/promoter. When the customer is gently lead towards the answers with clues he or she may actually feel smart and better about him or herself for having arrived at the right answer. In this case, long or repeated exposure to the campaign actually helps in conditioning the consumer towards the product/service and its attributes and features.

Kaavish Kidwai PGDM (Batch 2010-2012)IMT Nagpur

Meghna Sinha PGDM-Marketing (Batch 2011-2013)IMT Nagpur

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The situation is actually analogous to men sitting in ho-tel/restaurant bars in Las Vegas. They end up strik-ing conversations and hav-ing a great time with at-tractive women. It is only next morning that they find out that they have actu-ally availed themselves the services of an escort which leaves them embarrassed or feeling foolish. The strategic placing of these escorts is in fact an instance of stealth marketing. Casinos use atmospherics, pheromones and periodic releases of pure oxygen to create a sense of light-headedness and eu-phoria that keeps the customer engaged at the gambling tables in spite of losing streaks.

Stealth pop-up windows have been associated with many websites where a window to an alternative site pops up in the background, often noticed by the customer only when the main window has been closed.

Online engagement and use of planted trained salespeo-ple to engage in one to one conversation helps develop a personalised target and approach but on the flipside, the more personal a tactic the more is the sense of indigna-tion one feels when the truth is revealed. Stealth mar-keting is often dangerously personal. People are hired to move and mix among oblivious throngs and crowds of people publicly using the products and exclaiming about their benefits and features. The rest is left often to the “Keeping up with the Joneses” Syndrome or else the hired salespeople might casually strike up conversations with members of the crowd and introduce the product into the conversation.

The flattery aspect is tapped in when an attractive/comely person shows apparent interest in an average person and strikes up a conversation. The better the person feels though; the worse is the sense of betrayal if and when he/she senses the deception.

The sense of understanding and similarity of wavelength can lead a customer in but more is the sense of being wronged or feel-ing cheated when it is re-vealed to be a gimmick.

Product placement is of-ten a variation of stealth marketing where the per-sonality and traits of the

characters are carefully chosen before having them en-dorse the product in the course of the movie or episode. This forms a subtle subliminal connect with the audience who feel the need to acquire those products. The sub-liminal context is that using those products will imbue the consumer with the traits of that particular character.

Spreading exaggerated or misleading statements and opinions or targeting oblivious people psychologically through subliminal or reinforcement techniques are un-ethical aspects of stealth marketing that many market-ers indulge in. They view it often as damage control or a perfectly normal phenomenon, but anything that violates rational thinking or free will cannot be termed ethical. On the other hand, stealth marketing also offers opportunities to engage customers dynamically and play on their ego or induce a feel good factor into the equation that leaves them with a slight sense of elation.

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SurrogateMarketing

“Khoob jamega rang jab mil baithenge teen yaar – aap, main and bagpiper” – And I went on ranting about and showing off , till it was returned by Dad’s stare and Mom’s frosty nosed look!!! This was a decade back when some of dad’s ‘work friends’ had come over for dinner and the cute kid was the centre of atten-tion. Though highly confused at that time (it was a soda ad for god’s sake), this somehow remains firmly etched in my other-wise pitifully weak memory.

They call it ‘surrogate marketing’ these days – fanciful name, isn’t it?? To explain it to the non-marketers (what purpose do they have in life??), let’s assume there is a big company/organ-isation called Gabbar . It wants to advertise its thing, but it does not want to put its product to limelight. Hence, it uses a smaller company, a scapegoat, (let’s say Samba) to propagate. Usually it is done to market controversial stuff. So, legal action, if any, would be taken against Samba and since Samba is a small fish, there won’t be much loss.

Call it unethical; call it deceptive, this sure is a smart take on modern day advertisements and totally legal. You must have seen Ajay Devgan in the Bagpiper ad (I am somehow obsessed with Bagpiper). After a gruesome fight he recommends Bag-piper and after a longgg pause tags it with the word ‘soda’? The word soda comes in a bit late, by the time the audience is already thinking. Smart, isn’t it?? This is surrogate advertising. Bagpiper Soda is the surrogate product.

Other significant examples include 8PM Whisky (apple juice), Aristocrat Whisky (apple juice) and Hayward’s 5000 Beer (kit of darts which was the centre piece of the advertising campaign). UB group liquor brand Royal Challenge promotes itself through golf tournaments and recently (not quite) through IPL cricket team Bangalore Royal Challengers.

Now, imagine the quandary of a producer who is mandated to legally produce and stock a product but then has his hands tied by being denied the right to market his produce.

Similar is the situations many companies are facing after the Government of India passed a mass ban on all advertise-ments of “intoxicants and harmful substances in mid 2002. When the rules itself are unrepresentative, companies will make use of flaws in it. As someone rightly said in a recent interview I remember I saw, “Take the ad of any liquor brand, though no Govt. is dare enough to come up with a stringent law to ban them (since their budgets are largely dependent on revenues from this sector), yet, they make rules for rules sake”. Then, who shall I say is deceptive here??

As a marketer, I would say that this has led to innovative prac-tices of spending on different media for Advertising by the companies, where they do more of a brand building exercise than direct advertising. Be it promotions for brand building, or sponsoring events that can be mapped with the “showbiz” and “glamour” of the brand, advertisers don’t leave many av-enues to enhance their visibility.

As to the fact of the success rate of surrogate advertising, well, it has worked loads for some (Bagpiper, Johnnie Walker) and not so much for many (people may not associate Wills Lifestyle with the Will’s cigarette brand). This emerging trend will keep on exploring new avenues, as companies will contin-ue to bend rules, to make their brands known and out-com-pete each other as well. At the end of the day, data statistics sab dikhata hai mere bhai!!!!

Rachna Bagaria.Xavier’s Institute of management, BhubeneswarPGDM- BM

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Advertisers have turned elegant and turned to various other advertising avenues, stretching their creativity to unheard of levels. Be it humdrum tricks like event sponsorship and Internet advertising; or out-of-the-box thinking such as ITC’s diversifica-tion into apparels (the cigarette brand Wills has totally diversified into a new market segment altogether!!); as well as the distant-far-fetched examples like as the Red and White Bravery Awards (Godfrey Philips also, for that matter) and other lifetime achieve-ment awards done mainly to bring about brand recall in the target audience.

Surrogate marketing is also done by gutka and pan masala gi-ants Manikchand by hosting the Bollywood Filmfare awards. One name which I can’t go without taking is Johnnie Walker. Its leg-endary advertisements on ‘Keep Walking‘ with iconic achievers like Vijay Amritraj and Narayan Murthy who successfully associ-ated Johnnie Walker with accomplishment has made the brand logo well known (the famous ‘Striding Man‘ logo, which also has a society in its name – the Striding Man society, for Johnnie walker drinkers).

But here comes to forefront the issue Indian politicians love play-ing about – ethics. The notion that the advertisements impel the consumer into drinking is misconstrued. After all, it doesn’t take an ad for someone to become alcoholic (!!!).

In villages the local variety of alcohol which comes in different fla-vors and names can be seen. Who in the name of god is marketing those?? A village or a town might or might not have a school. But it is bound to have a liquor shop. I say, one more time, the bans and the campaigns are misplaced. If the government is really aim-ing at rooting out the problems, they surely have to start at a dif-ferent level altogether. Banning surrogate ads seems to be a low hanging fruit which doesn’t serve any one’s purpose.

Now, imagine the quandary of a producer who is mandated to legally produce and stock a product but then has his hands tied by being denied the right to market his produce.

Similar is the situations many companies are facing after the Government of India passed a mass ban on all advertise-ments of “intoxicants and harmful substances in mid 2002. When the rules itself are unrepresentative, companies will make use of flaws in it. As someone rightly said in a recent interview I remember I saw, “Take the ad of any liquor brand, though no Govt. is dare enough to come up with a stringent law to ban them (since their budgets are largely dependent on revenues from this sector), yet, they make rules for rules sake”. Then, who shall I say is deceptive here??

As a marketer, I would say that this has led to innovative prac-tices of spending on different media for Advertising by the companies, where they do more of a brand building exercise than direct advertising. Be it promotions for brand building, or sponsoring events that can be mapped with the “showbiz” and “glamour” of the brand, advertisers don’t leave many av-enues to enhance their visibility.

As to the fact of the success rate of surrogate advertising, well, it has worked loads for some (Bagpiper, Johnnie Walker) and not so much for many (people may not associate Wills Lifestyle with the Will’s cigarette brand). This emerging trend will keep on exploring new avenues, as companies will contin-ue to bend rules, to make their brands known and out-com-pete each other as well. At the end of the day, data statistics sab dikhata hai mere bhai!!!!

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Regional Brandsthat survived and made it big !

T languages and markets,” So, our communication strategy with each brand differs from market to market. We create different campaigns, use local celebri-ties and talk to consumers in their own language to better communicate the brand benefits, said V.S. Sitaram, COO, Dabur.

Dabur Lal Dant Manjan is sold under the brand name of “Dabur Sivappu Pal Podi” in Tamil Nadu to make sure that it doesn’t miss out on the state’s non-Hindi speaking consumer. Meaning of Sivappu pal podi and Lal dant manjan is same.

Emami’s Navratna oil, a Rs. 300 crore brand, has different brand ambassadors in different states. In Tamil Nadu, the brand is endorsed by actor Surya, in Andhra Pradesh by Chiranjeevi and Mahesh Babu, in Karnataka by Upendra and across India by Shah Rukh Khan and Amitabh Bachchan.

he global downturn has claimed far too many victims but one segment in India that may reap the benefits of this reces-

sionary climate is regional brands. Gone are the days when companies used to serve whole India in a similar manner. Today, companies are tar-geting and catering different regions in different manner. This has happened due to emergence of some strong regional players, who understood needs of region and serving accordingly.In many product categories one can see the emergence of very strong regional brands fight-ing for number two or three slots. These regional brands have been giving sleepless nights to their multinational counter parts. Be it a Cavinkare or Jyothi laboratories in the south, or a Ghadi de-tergent in U.P. or Wagh Bakri tea in the west, all of them have put the big companies on their toes.

Understanding the Needs of Region:

“Often companies treat India as one big market, but the reality is that India is more like the Euro-pean Union—a mix of different cultures,

Pankaj Bathla 1st Year (2011-13) PGDIMPrin. L. N. Welingkar Institute ofManagement Development andResearch, Mumbai3 year sales experience in pharmaceutical industry.

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Cavinkare’s Chik Shampoo, Rs200 crore-plus brand, has regional variants, to cater to the vari-ous markets of Tamil Nadu and Andhra Pradesh. The company also has another local brand named Karthika, to cater Andhra Pradesh.“Our regional brands are our fastest growing brands,” explained Vineet Trakroo, VP, Cavinkare.

Wagh Bakri Tea, the third largest packaged tea company in India, is a leader in markets like Raj-asthan, Gujarat, and Madhya Pradesh and also has major market share in Goa, M.P. and Maharashtra. Company says it will come up with new blends to suit regional tastes.

Marico’s Parachute co-conut oil has 48% mar-ket share. Over the years, the brand has understood nerve of re-gional market and had introduced many prod-uct extensions, such as Parachute Advanced Re-vitalizing Hot Oil for win-ter care. “Regional brands are rooted in beliefs or in consumer practices”, said Sameer Satpathy, Mar-keting Head, Marico.

MNC’s on their Toes:

“Small and regional brands score because they are often close to the market and respond faster to changes and are willing to learn from mistakes”.

Jyothi laboratories’ Ujaala is beating Reckitt Benckiser’s Robin Blue, black and blue. Similarly, Priya Gold biscuit is munching away market and is already aRs. 400 crore brand. It’s Moov pain relief ointment of Paras Pharmaceuticals, which has made life painful for Reckitt Benckiser’s Iodex.Also, Ghari Detergent has become second-largest brand in India. The brand is now present in 19 states.A regional brand had suddenly gone na-tional, reaching out to millions of new customers.

Rohit Surfactants Pvt. Ltd ended fiscal 2010-11 with net sales of Rs 2,200 crore — Ghari contrib-uted Rs 2,083 crore. This is at par with the sales of multina-tional FMCG majors like Reckitt Benckiser and Cadbury in India.Conclusion:Consumer insights and under-standing are keys to success.Whether it is oils, soaps, sham-poos or skin care, Brand pref-erences, consumer needs and

taste varies according to regions, says marketers.Therefore, India would predominantly be a mar-ket of regional brands, because the regional dif-ferences within the markets is too great to be ca-tered to by a single national brand.

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MaduriMajicge wrinkles the body, quitting wrinkles the soul- quote by Douglas McArthur –correctly signifies philosophy followed by

anti-aging cream segment companies in India.

A

Madhuri MajicA ge wrinkles the body,

quitting wrinkles the soul- quote by Douglas McArthur –correctly signifies philosophy fol-lowed by anti-aging cream segment compa-nies in India.

The sight of eternal Indian diva Madhuri Dixit in the latest anti-ageing cream ad-vertisement floated by P&G is enough of an allurement for most women in their late 30s to go and buy it without giving a second thought. The war for launch and promotion of anti-ageing creams is beginning to reach a crescendo with top players in the segment coming up with new offerings with each passing day. A perfunctory glance towards the arithmetic involved in this sector would put things into perspective. The Indian skin care market as of today stands at a whopping Rs.2100 crores, steadily growing by over 16% year on year.

The anti-ageing market contributes around Rs.60 crore to it. Though in its nascent stages, anti-ageing segment is being touted as the next big thing in the cosmetic industry as it has doubled its share over the last three years.

In the coming few paragraphs we con-centrate at this rapidly growing segment by zeroing in on one of the stars of this segment namely- Olay.

Olay Total Effects (OTE) was introduced by P&G in August 2007, which focused on seven signs of ageing and claimed to have ingredients that could help counter those seven signs of ageing.

P&G’s marketing research team initially zeroed on the ‘working women’ as their target group, and sticking to this they appointed fiercely independent Sush-mita Sen (former Miss Universe) as the brand ambassador. This was Sushmita’s first major association with a brand, who prior to this has had a limited screen pres-ence in terms of advertisements (much to the dismay of her admirers). The gamble somewhat paid off as Olay Total Effects attained a firm grip over the market.

For the OTE range, the company used a testimonial type of campaign featuring a Model/TV Anchor. The focus was more on the functional benefits of the product rather than emotional benefits. The brand was positioned as one that celebrated beauty within and outside.

The brand used the tagline “Love the skin you are in” & believed that Looking Good and Feeling Good are inseparable. I.e. loving the skin we are in is the most beautiful feeling of all. This struck a chord with the Indian audience as this was a new way of promotion and Olay Total Effects emerged as the market leader.

Interesting to note would be P&G’s fierce rival HUL’s moves in the same segment. HUL entered the market with Ponds Age Miracle in early 2007(before P&G). It was introduced as a prestige brand targeting the upper class women (married), but simul-taneously marketed and priced as a “Masstige” product.. While P&G’s advertis-ement and marketing focus was on independentworking

MajicMajic

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MajicMajicMajic

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women, HUL diverted its efforts towards the lives of ‘married women’ by focusing on ‘romance revival’ keeping husbands in mind. There’s a fine line of difference in thinking of both the FMCG giants, where P&G focused on independent work-

ing wom-en, who t h r o u g h the vaga-ries of their busy lives intend to stay young and look g o r g e o u s while HUL c a t e g o r i -cally hinted at target-ing married women who wish to re-vive their r o m a n c e with their h u s b a n d s

and feel that only way to achieve the same is by staying beau-tiful and young.

And hence the difference in thinking was palpable through the advertisement campaigns launched by both the giants.

Thus P&G kept run off the mill Barbie doll type actresses away from this campaign. It carefully selected women which were oozing a sense of independence in their aura & thus, targeted a specific segment. Ponds on the other hand continued with oomphfactor of actresses & models like Mehr Jesia Rampal & Rina Dhaka. Brand focused on ladies who were in their 30s & still looked vivacious.

But, with a slight diversion from their taste of brand ambassa-dors in mid 2010, Olay bought on board Shilpa Shetty & Soha Ali Khan to promote Olay Beauty Challenge. Though both these actresses fit in the line of Olay’s core fixation with choosing in-dependent minded beauties as their brand promoters, but Olay, probably under the influence of rival HUL’s marketing agenda, gave into oomph factor. Kajol was roped in to promote Olay Total Effects and Katrina Kaif was handed the responsibility of endors-ing Olay’s Natural White Cream in its radiance range.

More than the product itself it’s the brand ambassador for Olay Regenerist which is creating more waves. With Olay roping in Madhuri Dikshit for ORG there’s a buzz in the industry that ac-tress’s return to endorse beauty products is a strong signal of her making a comeback to the tinsel town. And that is working well for the product and its promotion amongst the masses.

Madhuri Majic

Mayank Mahajan (MBA International Business 1st Year)University Business SchoolPanjab UniversityChandigarh

Anuj Kapoor (MBA International Business 1st Year)University Business SchoolPanjab UniversityChandigarh

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The tagline “Challenge What’s possible” i.e. chal-lenge what is possible for consumer’s skin & use ORG to get dramatic results on their skin without drastic measures has been very meticulously cho-sen to compliment the choice of the eternal diva as the chief promoter of the product. Olay Regenerist has been introduced as a special product by P&G which is evident from the fact that it was launched in association with Harper’s Bazaar, a well known American fashion magazine.

Change in positioning was from “Love your skin” (which was used for Olay Total Effects) to “Chal-lenge what’s Possible”(for Olay Regenrist) as it provides better functional supremacy, which is needed to target high priced (premium) consumer segment targets as perceived by Regenerist.

Though it’s the performance of the product that is a better benchmark to rely on, there is a notable effect of the “celebrity factor” that connects the product with the target segment at an emotional level. Mad-huri Dikshit in her 40’s and still looking as ravish-ing as ever is a slight indication to the women of her age that though the age is catching up on them, staying gorgeous isn’t all that hard.

Majic

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RAMIT GOYALPGDIM 18NITIE

The Internet has come a long way in just a few years! The rapid development of online services and World Wide Web has taken the consumer marketers by surprise. While some were prepared to take the challenge, others were caught un-aware and still grappling to find their way to move forward.Due to this rapid development, managers in most of the organizations have focussed their attention on online promotions, taking advantage of inter-net’s vast reach and unique ability to measure success. The traditional, more expensive (and less measurable) advertising media, like TV and press,

have started to give way to the digital alternative. The digital marketing is so flexible that, with the right profile data available, potential customers can be approached online with messages that can be timed to correspond with their receptiveness at different times of the day.products through applications or making new ap-plications to make the user experience more ful-filling and enriching.

Owing to the recent success and forward looking approach of digital marketing, companies have started predicting the future trends in this field.Tap the Pocket Market- Mobile Marketing Cell phone is a part and parcel of life nowadays; it goes with us wherever we go. It has become the most frequent thing people use these days. So there lies a huge potential in tapping market through the mobile phones – be it promoting

Mobile applications will continue to be developed and smart phones and tablet PCs will be adopted by increasing number of people in the coming years. When we say mobile applications, who is not familiar with the gaming application “Angry Birds”. Inspired primarily by a sketch of stylized wingless birds, the game was first released for Apple’s iOS in December 2009. Since then, over 12 million copies sold are the epitome of ap-plication reach and this has prompted the com-pany to design versions for other touch screen based smart phones, such as those using the Android operating sys-tem and others. These days the app making companies have started partnering with companies who want to promote their products.Recently, Samsung’s Galaxy note is being promoted through Angry Birds game. So who is the target of such a pro-motion strategy?

Digital

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A person playing the game who wants to buy a smart phone is a perfect target for such a pro-motion. Isn’t it? If targeted correctly, these pro-motions can be a huge success.

Mobile Wallet - In addition to the mobile appli-cation based promotion, the user mobile expe-riences are set to change. Over the years, the way we pay has changed from coins to paper money to debit/credit cards and now we‘re on the verge of next phase i.e. payment through mobile phones. There are several technologies under devel-opment which would make payment through mobiles easier (one of them is Near Field Com-munication which enables the transfer of data between two devices in very close proximity). So the companies will start producing such ap-plications which would cater to offering products on mobile and customer purchasing them then and there only.

Geo – location based marketing - The future of mobile marketing is dependent on social and lo-cation based marketing. The most success-ful marketing messages will combine the geo-graphic location with the relevant place nearby. The various big stores will be using such tech-nologies by locating the customers nearby and providing them push content and alerts on real time local deals.

Marketing Brands will create their own apps that will tap into geo location based customers. One of the companies which does this kind of mar-

keting is US based Movoxx, which had launched its operations in US in 2010. What they do is:• Determine real time user location• Sends the best relevant ad served from merchant database • Based on that ad, the user visit the mer-chants profile page to trigger action

So in this way the companies will attract the cus-tomers by knowing their geo location.

the way forward

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if you see a QR code in an advertisement, scan it with your smart phone and immediately have access to a lot of information electronically.

Some time back, Ford Figo used QR codes in their print advertisement where the QR code scan would take the user to first a page where the application by Ford needs to be downloaded. Thereafter, this downloaded application would play an advertisement of the car by using the In-ternet connection on the device. If the consumer is tech-savvy, this is a very powerful tool to con-nect to customers.

As the smart phone users will continue to in-crease, the in-app ad spend will continue to ex-plode. The app story will simply move up to the next level.

So I would like to conclude by saying that digital marketing is set to rise in the coming years but its influence depends on the rate of adoption of smart phones and penetration of internet within the country. As the number of internet users is rising each year, digital marketing is set to be-come a significant parameter in creating brand identity by influencing user experiences.

Suppose you are shopping in a market searching for your wedding dress and you receive a message from a shop in that area which is selling a wed-ding dress at a very attractive price, wouldn’t you go and try it out once? This is the power of geo location based marketing to attract the customers which otherwise would not have noticed them. The numbers of mobile applications are set to increase which will increase the location based marketing.

Use of QR codes - QR (Quick response) codes are used to gather data and link to in-store experi-ences. More companies are realizing the power of using QR codes in their marketing strategies. QR codes are very similar to bar codes, which contain information that can be decrypted by a QR reader.

QR codes can be scanned and read by various ap-plications on a Smartphone. This enables everyone with a Smart-phone to read QR codes without any

special equipment, only your phone. It is really easy to use –

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GreenMarketing

Green marketing involves informing consumers about initiatives a firm has undertaken that will benefit the environment, with the overall goal of improving sales or reducing costs.

‘Green-marketing’ is actually related to Corpo-rate-Social-Responsibility. There are four general dimensions encompassed in CSR, one of which specifically can be tied to green marketing: • Socialresponsibility• Ethicalresponsibility• Environmentalresponsibility• Governance

It clarifies that every time a company does some¬thing that feels nice, it cannot be parlayed into a green marketing campaign – only activi-ties which benefit the environment can. The challenge is to identify compa¬nies which are imposters guilty of ‘greenwashing’.

I ntroductionA recent study from the environmental market-ing company ‘TerraChoice’ identified “The Six-Sins of Greenwashing” as:• TheSinoftheHiddenTrade-Off• TheSinofNoProof• TheSinofVagueness• TheSinofIrrelevance• TheSinofFibbing• TheSinofLesserofTwoEvils

INNOVATE FOR SUSTAINABILITYInnovation for sustainability brings with it excit-ing opportunities for businesses to help grow their top-line sales and even evolve and trans-form their business models- indeed, their entire company- to better compete within the rules of a more sustainable future. Winning strategies for green marketing • Understanding the deeply held environmen-

tal beliefs and values of your consumers/stakeholders and develop a long term plan to align with them.

• Create new products and services that bal-ance consumers’ desires for quality, con-venience, and affordability with minimal adverse environmental and social impact over the product’s life.

• Develop brands that offer practical benefits while empowering and engaging consum-ers in meaningful ways about the important issues that affect their lives.

• Establish credibility by communicating your corporate commitment and striving for transparency.

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• Go beyond what is expected from stake-holders. Proactively commit to doing your share to solve emerging environmental and social problems- and discover competitive advantage in the process.

• Think holistically. Under-score community with users and with the broad array of corporate envi-ronmental and societal stakeholders.

• Don’t quit. Promote responsible products use and disposal practices. Continuously strive for zero impact.

Beyond eco-design to eco-innovation

To stay competitive and meet the challenges of sustainable development, forward thinking businesses will need to combine innovation with ecology. Innovation is required at the concept stage, or developing entirely new products and services capable of performing the same func-tion as existing ones with significantly less envi-ronmentally impact.

Green Marketing Myopia Green marketing must satisfy two objectives: improved environmental quality and customer satisfaction. Misjudging either or overemphasiz-ing the former at the expense of the latter can be termed “green marketing myopia.”

Aside from offering environmental benefits that do not meet consumer preferences, green

marketing myopia can also occur when green products fail to provide credible, substantive environmental benefits.

GUIDEPOSTS - THE“THREE C’S”

Evidence indicates that successful green prod-ucts have avoided green marketing myopia by following three important principles:Consumer Value Positioning•Designenvironmentalproductstoperformbetter than alternatives.•Promoteanddelivertheconsumer-desiredvalue of environmental products and target relevant consumer market segments.•Broadenmainstreamappealbybundlingconsumer desired value into environmental products.

Calibration of Consumer Knowledge•Educateconsumerswithmarketingmessagesthat connect environmental product attributes with desired consumer value.•Frameenvironmentalproductattributesas“solutions” for consumer needs.•CreateengagingandeducationalInternetsites about environmental products’ desired consumer value.

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23Credibility of Product Claims•Employenvironmentalproductandconsumerbenefit claims that are specific, meaningful, un-pretentious, and qualified.•Procure product endorsements or eco-certi-fications from trustworthy third parties, and educate consumers about the meaning behind those endorsements and eco-certifications.•Encourage consumer evangelism via socialand Internet communication networks with compelling or entertaining information about environmental products (for example, Tide’s “Coldwater Challenge” Web site included a map of the United States so visitors could track and watch their personal influence spread when their friends requested a free sample).

GREEN ACOUNTABILITY : How to measure it?

These new standards are meant to take a holistic view that incorporates sustainability, social re-sponsibility, and membership in a larger global community. Environmental issues are socio-economic problems. They should be seen in the context of how they impact human society and the ecosphere. In a holistic view, several sets of overlapping standards embrace nearly every-thing a company does as a corporate global citi-zen.ISO has crafted ‘ISO-14000’, a harmonization of environmental standards. The following points are standardized:• Standardsforenvironmentalsoundnessof products and manufacturing processes.• Harmonization of criteria for ecola-beling programs for consumers (Green-Dot, Green-Seal, Ecomark, etc.)• Supplier standards for environmentalsoundness.• Criteriaforlife-cycleanalysisprocessesthat determine the incremental environmental impact of a product or process from cradle to grave.Various attributes that can be attached to a product or its evaluation are:• Toxicityofmaterialsused• HealthandSafety• Servicelifeanddurability• Energyconsumption• Recycledcontentofproduct• Recyclability• Reuse

• Manufacturingwastes• Disposalalternatives

The outcomes have appeal for marketers be-cause the benefits are immediately promotable.

The system must evolve in light of new perspec-tives. For accounting to enter a new age, eco-nomics itself must first be viewed in a new light. A new system of green economics is working on a system that attempts to gauge sustainability in macroeconomics. The way ahead is calculating “Green GDP”, which constitutes:

• GDPaccountingisbeingrefiguredbasedon the UN’s system of National Accounts and a satellite system that will relay environmental data. Using the new information, the govern-ment can estimate the cost of natural resource depletion across the continent and subtract it from the total GDP.• Prototype estimate of non-renewableresources will be prepared in tandem with con-ventional data on industrial production and sales of goods and services.• Inventoryestimatewillalsobepreparedof renewable assets. Even-tually, this information will be integrated with the non-renewable data.

CONCLUSION

Green marketing is gain-ing significant attention from both firms and con-sumers. Given that a care-fully crafted green market-ing strategy can earn credibility with customers and provide a platform for revenue growth, it’s an area worthy of additional consideration.

GURKIRAT SINGH PGDIM (2011-13)NITIE, MUMBAI

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Jeet Kumar 1st Year(2011-13) MBA Full TimeFMS Delhi

In a general term, surrogate marketing is “when you promote one product/service in the hope of selling some other product”. Question is why you would want to do that? There can be more than one reason but most important one is that you aren’t able to legally. It is used to indirectly promote products or services deemed by some groups as being unhealthy, unethical, and im-moral or, possibly, illegal through activities that are viewed as acceptable forms of promotion. Many say that surrogate ads are smart work but others say that they cheat customers as they don’t say the message clearly.But is it wrong to say that surrogate marketing is a result of situation created by the Government Laws & Rules, whereby for e.g. One cannot Sell LIQUOR as LIQUOR but can sell it as soda? Ever wondered why Bacardi and Royal Stag launched their music cd’s and what made Kingfisher enter the segment of mineral water?

In India, ministry of health has banned the advertising of liquor and tobacco. On one hand, the govt cannot allow public adver-tising of liquor companies. Rule says “Advertisements which lead to sale, consumption and promotion of liquor should not be allowed.” But ironically, liquor and cigarette sales are the biggest rev-enue generators in terms of taxes and duties on these items. Sales of these items are not banned, yet advertising on the same has strictly been prohibited! One instance of surrogate advertising is ‘Four Square Bravery Awards’ in the name of Four Square cigarettes.

Companies in banned industries are introducing brand exten-sions with products that are legal to advertise with the same brand name as the banned product.EXAMPLES:

• Royal Challenge as IPL Team, golf accessories.• Wills as sportswear.• Smirnoff associations with events: ‘War of the DJs’• Johnnie Walker advertisements on ‘Keep Walking‘ • Haywards 5000 soda featuring Sunil Shetty, Sanjay

Dutt. • Bacardi Music!• Kingfisher Airlines, Calender, NDTV Good Times,

Soda, Water• Tagline: ‘khoob jamega rang jab mil baithenge 3 yaar –

aap, main aur bagpiper‘• White Mischief holidays, and also through the RCB

cheerleaders

Now the question is : Is surrogate marketing Working ?Let’s look at some of the facts:• Asurveyof 2001revealedthatadvertisinghasadirect influence on the consumption habits of 431millionpeopleinIndiaandanindirectimpacton275million`aspi-rants’ from the lower income group. Considering this there is no doubt that the hidden call for alcohol consumption be-hind the surrogate advertisements is not escaping the eyes of viewers in the world’s fourth highest liquor-consuming country.

SURROGATE

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• While many Asia Pacific countries registeredlowgrowthbetween2008-2010duetotheglobaleconom-ic downturn, alcoholic drinks in India haddouble digit growth. Demand for alcoholic drinks in In-dia is expected to continue to rise over the forecast pe-riod, with a double digit volume CAGR expected between 2011-2015.ThealcoholicmarketinIndiaisestimatedtocrosstheUSD39billion(overRs1,75,950crore)markby2014,asperresearchfirmDatamonitor.

• IntheyearendedMarch31,2010,UBgroup’svolumessalesgrowby20%againstanindustrygrowthof10%.strongbeermarketgrew13%.UBL’sprofitbeforetaxfortheyearendedFY2010hasgrownby50%com-pared to that of the previous year.

• According to Accenture report on AlcoholicBeverages industry in Asia Pacific, Understanding local regulations and restrictive advertising norms is critical to success. This is particularly important in China and India, given their complex distribution and regulation structures. Trade activation is critical to ensure brand availability. On-premise marketing is important for premium beer brands.A$124billionindustrytoday,thebeermarketinAsiaPacific is predicted to reach$149billionby2012,which makes this region the growth driver for beer world-wide in the years ahead. Also Wine is growing—at $46 billionnow,itisprojectedtoreach$55billionby2012.

Below is the Asia Pacific Market Strategies for Alcoholic Beverages as prescribed by Accenture: All these are products and like any other items they need ad-vertisement whether you like it or not. If at all the govern-ment wants to stop this then why not ban the products all together. Of course, banning has not worked in the past and will not do so in future. It would only create a black and un-derground market. Surrogate marketing is definitely here to stay, because the prohibition is unlikely to be removed any time soon, and alcohol companies would likely never cease to exist. And as long as both business interests and restric-tions remain, surrogate marketing will thrive.

SURROGATE MARKETINGDoes it really work ?

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Advertisers are a busy lot. They are always looking for new mediums to deliver product propositions and hence at the same time increasing brand value.

In the last few months there has been a new trend in advertising which is use of musicals to introduce new product or service. This has been a substantial deviation from traditional point of view of advertisers for new product launch. Gone are the days when big brands used to rope in big celebrities for new product launch and then create the whole advertise-ment around them. That approach usually resulted in celebrity clutter and lack of differentiation in mind of customers for the brand advertised. The primary reason being that same celebrity is promoting other brands also.

So what started with We are Black-berry Boys but done halfway as far as musical was concerned is now finding its manifestation in new In-digo, Vodafone-blue facebook en-abled phone and Allen Solly Ad. Whereas the focus of We are Black-berry Boys was on brand reposition-ing, The primary connecting point in new campaigns is that all three of them are telling a story about new product/service and how that im-pacts your daily life.

Musicals are great in way that you have a new story to tell and the fo-cus of advertisement is your product and service offering. Another reason currently going in favour of musicals

is that innovativeness associated with this medium and hence the pos-sibility of garnering maximum atten-tion span.

So a look at new Indigo ad certainly gives a freshness aspect and fast paced advertisements also tries to offer as much as possible in limited time by telling that Indigo is now fly-ing abroad. The focus is on again brand proposition of Indigo i.e. on time arrival of airline and visually representing attire of Indigo also helps in creating a top of the mind recall.

What this advertisement achieves that it targets only its target seg-ment as medium of communication is English i.e. the person who is trav-elling abroad so instead of going for OOH displays this offers far more convenience to brand to reach its target customer.

Now take a look at Allen Solly Ad-vertisement. In a product category where Bollywood celebrities are the norm be it John Players or Van Heu-sen, here comes a brand which is fo-cusing on normal office persons who are their target segment.

Along the way they represent the brand proposition of friday dressing and the vocals certainly give out a peppy feel to their offering.Moving forward to take a look at Vodafone-Blue Facebook enabled phone. To advertise something to In-dian Youth in big cities, who is

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AYalways connected to online is big challenge especially in a product category which already has hun-dreds of competitors. In this sce-nario to gather attention span of this youth, what was needed is to identify a gap in Indian customer interaction with different mediums.

So the conclusion arose was that Indian customers are not too famil-iar with Broadway shows and the whole concept of musicals. That is the target point they focused for showing the daily life of youth in a musical in Broadway show style.

This type of strategy works two fold. First there is innovativeness, second there is chance of tune of musical going viral or gets identi-fied with brand. Although the ad-vertisers are not aiming for chart-busters but the brand recognition does wonders for brand.

But among this entire great con-cept the primary disadvantage is that in this fast pace scenario mu-sicals work only when you have a story to tell and shorter edits does not work here.

The secondary apprehension re-sults from fact that music and film do not hijack the brand proposition and brand offering. This is case synonymous with celebrity hijack-ing of brand they endorse where company lose top of mind recall.So far so good for this concept and we will certainly see deluge of such ads in coming year 2012.

Pranay SinghMBA 2nd yearFMS,Delhi

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