Vol.2 Issue 1 January 2014 Monthly Issue
Flaunte' Jan 2014
Editor’s Desk Dear Readers, Hope you had an amazing New Year Celebration. After our scintillating Anniversary edition, we proudly present the January edition of Flaunte’. In this edition we give you a glimpse of the glamorous world of Celebrity Marketing. Moreover, our Special story is all about the Golden Globe Awards. The case study on AAP gives an overview of how management plays a role in politics. The First Cut tells the success story of the Google Reunion ad and not to forget, we also have your monthly dose of management lessons from the pages of Srimad Bhagvad Gita. Share your thoughts on how we can improve and be sure to come visit us at www.facebook.com/FlauntNDIM and www.twitter.com/FlauntNDIM for more of the latest updates and knowhow of the world of marketing. Keep Reading! Keep Liking! Team – Flaunte' Markomania – The Marketing Club New Delhi Institute of Management
2
Flaunte' Flaunte'Jan Jan2014 2014
NDIM
Cover Story:
Golden Globes
Special Story
12
CHANAKYA NITI: Marketing Lessons by AAP (8) Celebrity Marketing(4)
First Cut:
MYTHOLOGICAL MANAGEMENT LESSONS
Bhagavad Gita (22) Google reunion(11)
Articles(16)
Snippets(20)
NDIM
Flaunte' Jan Flaunte' Jan2014 2014
Biz Quiz(19)
?
3
Cover Story
C
elebrity Marketing is a time tested technique of getting a famous person or a well-known face to endorse a product or a brand. History is evidence to the fact that famous people are inherently brilliant salesmen. The idea is to use the person’s fame and rapport to rub off on the endorsed product, thus providing instant credibility. The source of that fame may be anything from movies, music, sports to politics or plain and simple cartoons. 4 Flaunte' 2014 Flaunte' Jan Jan 2014 NDIM
NDIM
Flaunte' 2014 Flaunte' Jan Jan 2014
5
The only thing that matters is that the person be familiar and relevant to the target audience in question. For example, a skateboard stunt champion might not be known worldwide to everyone but would interest adrenaline junky youths who would be the ideal target group for energy drinks. Celebrities can endorse a product either explicitly or implicitly. Sometimes the campaign revolves round the concept that the celebs themselves use the product that they are endorsing, but on other occasions a celeb’s name is simply associated with the brand to resonate the celeb’s well known personality with that of the brand’s. The key to success in such a venture is to find the most appropriate match for the product, just any celeb won’t do. Repercussions of a wrong decision can damage reputation overnight and finding the right mix will provide a bounty of profits. Such campaigns are widely prevalent today in all possible mediums of advertisements, be it a lavish television campaign or a meagre print medium.
Who can use this tactic?
Companies and brands both large and small can reap the benefits of this marketing strategy. Nevertheless, getting a celebrity to endorse a brand is a costly affair, and should be done after thorough analysis and proper planning. A celeb endorsed ad campaign is generally a very costly one and are thus used by bigger brands and big companies who can afford it, whereas smaller brands just focus on print ads and autograph signing events rather than costly commercials. The recipe for success in this venture depends solely on the apt balance of the risks and rewards associated with such a campaign, both of which are ample. Introduction of a new product with such endorsement gives it an edge over others as consumers can connect
with a familiar face using it and thus the brand benefits in the shadow of the celebrity. Owing to the tough market competition, FMCG brands like Pepsi maintain an adherence to different celebrities as the sales by volume is their absolute goal and consumers need to be constantly reinforced.
Finding the right face to promote a product is the main headache of the marketers involved. The focus remains on the credibility of the endorser, otherwise the strategy is bound to fail. When judging the credibility of an endorser the marketer has to analyze three distinct categories, namely the celeb’s expertise, the trustworthiness and their attractiveness. If the celeb’s expertise contradicts the product then the venture will suffer, for example, a world class chef promoting motor parts is not a viable option. Moreover if the personality in question is not trusted by the target demographics, then they will not indulge in the product as well. Lastly, the celeb should be considered attractive by the target audience, and it doesn’t only mean the physical aspect. Amitabh Bachchan is an apt example in this regard, he is not only a well-known face but a dignified personality and thus his association with Dabur Chawanprash is such a success. It also imperative to mention the example of Tiger Woods, who was a spokesperson for Nike for years, but as his marriage suffered due to his infamous scandal, so did Nike, and the brand was criticized for still using him, especially in an ad where his father’s voiceover is portrayed. Another widely accepted test to find the right match between a product and a celeb is the FRED analysis, which evaluates the endorser based on their Familiarity (Are the Target Audience familiar with the face? Generally only Niche marketers can benefit from unfamiliar faces targeting a specific crowd.), Relevance (Is the celeb relevant to the target audience of the product?), Esteem (Is the celeb held in high esteem and has a good public image?) and Differentiation (Does the celeb portray the uniqueness of the product?).
Shah Rukh Khan Any story of celeb endorsements in India would never be complete without mentioning Shah Rukh Khan’s endorsement brigade. The undisputed King Khan of Bollywood and Don of celeb endorsements has lot of big brands under his endorsement bandwagon. From luxury watch brand Tag Heuer to Lux innerwear brand, he is the brand ambassador of many big and small brands alike. Moreover he has maintained an image of being India’s first celeb metrosexual and the first Indian male to do a Lux beauty soap commercial. The ad was the talk of the town and further reinforced by him later promoting Emami Fair and Handsome, the first Indian fairness cream for men. Moreover he
How to select the right celeb? Flaunte' Jan 2014 6
was signed by Parle Agro’s Frooti who were getting a celeb promote their product for the first time. Some other brands promoted by him are Nerolac paints, Pepsodent toothpaste, Navratna hair oil and many more upcoming contracts in the pipeline.
as well. Priyanka Chopra for brands like Pepsi, Nikon, Asmi diamonds, Samsung etc. Ranbir Kapoor’s famous Youngistan campaign for Pepsi Deepika Padukone’s campaign for Nescafe, Cybershot, Tissot, etc.
Abhishek Bachchan The cricketer brigade with young Indian captain Dhoni and cricket youth icon Virat Kohli’s various ad sprees are also worth mentioning. The list doesn’t end that easily. With newer products in the market every day and wavering brand loyalty in today’s age of empowered consumers, the celebrities are an essential bit of spice to add flavor to the brands image and personality and thus make them memorable.
Even though he was unable to carve out a position in Bollywood as a Superstar, but he has worked wonders for the brand Idea, a telecom service provider. Previously an almost unknown brand with big players like Vodafone and Airtel hogging the market share, Little B put Idea on the telecom map with his successful range of ads for this brand. A recent survey showed that Idea was one of the first four most talked of brands in its category all thanks to this one man’s influence on its brand’s image and the widespread acceptance by the consumers.
Hugh Jackman The story of Micromax in India is a true underdog story. Considered a cheap brand by many, even though they are giving market leaders Samsung a run for their money, they shocked the world when they roped in Hugh Jackman as their ambassador in October 2013. They are the first Indian smart phone brand to bring in a Hollywood actor. Jackman known for ‘The Wolverine’, ‘Les miserables’ and many other Hollywood blockbusters associated with this brand and proved that the brand is ready to fight the big boys. The venture was a huge success and gained a lot of media hype.
The Other Mentionable Ones
The examples are simply endless. According to a study in US, all companies whether big or small in the US have at least 20-25% of their ad spending for celebrity endorsements. The story is similar in the Indian market
Flaunte' Jan 2014
7
CHANAKYA NITI: Marketing Lessons by
T
8
he Aam Aadmi Party (AAP) created a sensation with a stellar debut in the Delhi assembly polls and is increasingly attracting people from different walks of life. Kejriwal started out as “niche”, but soon acquired mass appeal. He created a buzz around his idea, built trust around his m o v e m e nt , converted sceptics along the way and tested the market before a formal launch. How did he do it and what are the compelling lessons B-schools could glean from his movement? It takes a great product to build a brand. And it must click, stick and connect. A product must fulfill a consumer need. Often, it’s about providing an improved or upgraded version of similar products already available in the market. Growing public angst against the government and politicians for lack of accountability meant that a new political movement centred on clean governance was an idea whose time had come. Kejriwal recognised the potential behind the idea. It would “click”. So, the hugely successful anti-graft agitation, was actually a campaign to publicise his product: a clean, efficient administration. Think of it this way. Kejriwal’s idea was to sell a new detergent which would be really effective in removing stubborn stains from India’s political system. And he had a powerful new original ingredient, akin to a
patented stain-buster, to do the job: the Lokpal or anticorruption ombudsmen.
RETURN OF THE SALESMAN:
Experts said a brand works best when it recognises the vacuum in the market and then, identifies when it should talk louder. “He is the one who brought the essence of marketing back into practice –door-to- door marketing. This strategy makes one understand the need of consumer,” said Prahlad Kakkar, an ad- man. Also, the party struck the right notes with right slogans and election symbol. “He has become a marketer’s delight as he could potentially create case studies on how to create a market for your own product by creating
Flaunte' Jan 2014
NDIM
common competition,” said Santosh Sood, former COO of Rediffusion Y&R. “Despite working on his own imagery, his focus was on casting aspersions on the imagery of others.” AAP party leaders agreed that the growing anguish against the main parties helped keep the campaign focussed. “The disconnect of Congress and BJP with the masses helped us a lot. We were clear that public perception makes all the difference between a successful and unsuccessful brand. With Arvind (Kejriwal) being the icon, we had won half the battle even before it had begun,” said AAP’s chief spokesperson and Patparganj MLA, Manish Sisodia Product launches, like cricket, is also a glorious game of timing. “Voters were aggressively looking for answers to issues ranging from prices of onions to increasing gang rapes and Kejriwal took the lead. From a marketer’s perspective, he smelt the demand of the audience at the right time,” said Piyush Pandey, creative director, south Asia, Ogilvy & Mather, India. Veteran lawyer and AAP’s patron Shanti Bhushan put things into context. “There was ample scope for turning a new idea into a practical reality and the young AAP team outwitted the well established political rivals with its unconventional approach which was received by the public like a breath of fresh air.
credibility. Wherever we went, the challenge was not to market ourselves, but to clarify doubts, which was not a very difficult task. The young army of volunteers also contributed in sending the message across effectively.” The fight against corruption started with Anna Hazare’s Jan Lokpal movement but the face of Kejriwal gave continuity to the fight. “Initially, Anna also was a man of the hour and today, Kejriwal is a face of changing India,” Kakkar said.
The key difference was that in-house AAP experts and professionals planned their strategy much better in comparison to the outsourced work of Congress and BJP.” Deepak Kumar, a party volunteer from IIT, Delhi said, “Media played a key role in helping the AAP brand gain
AAP HAD A CLEAR MISSION:
NDIM
KISS:KEEP IT SHORT AND SIMPLE
AAP’s communication strategy was different from its competitors. No frills. No big rallies. Call it B2B of a different kind, back-to-basics. It opted for the timetested conventional word-of-mouth publicity and pamphlets and posters that had long been dismissed as belonging to a different era. The strategy: reputations are built in neighbourhoods, not billboards and the vehicle is what people say about a company or brand. “He (Kejriwal) selected the right audience, selected right ways to communicate and see, he is hugely backed by India’s increasingly assertive middle class which is the toughest to be wooed,” said Kakkar. “Their poster campaign was also accessible and readable to those who were sitting in luxury cars. The strategies were pocket friendly -- from harnessing social media to the creation of door- todoor publicity crusaders, said Pandey. “Our idea was to keep it straight and simple. The emphasis was on creating a brand which instantly connects with the common man. Our research and field studies showed the voters are no longer interested in lofty and impractical slogans. The key issue was how credible are you and we concentrated on it,” Sisodia said. At the end of the day, this is the age of start-ups where companies have blazed the trail in very short periods to rise to the top backed by credibility.
Santosh Desai, MD & CEO of Futurebrands India Ltd Thousands of local volunteers worked backstage which created a local canvas for the party. They launched
Flaunte' Jan 2014
9
door-to-door campaign which touched the right chord with the local audience. The clear lessons for a successful campaigning are - have a clear mission, involve your audience and then treat the audience like an individual. AAP had a clear mission and ideology which was fight against corruption. The mission was crisp, clear and consistent. From the early days of the Jan Lokpal Bill movement till today, the mission has been consistent and the consistency helped create ‘brand recall’ for the audience. Kejriwal’s decision to stand against Chief Minister Shiela Dikshit was the most thrilling. It had a shock value. He took a big and calculated risk, which is again an important element of marketing. His win against Dikshit did magic for the entire brand. A brand works best when it recognises a vacuum in the market and moves to fill it.
sit up and wonder. But the audience did not question the feasibility of the manifesto and evidences behind such promises. The strategy was to create pressure on the ruling government. Also, the party has benefitted from the relentless media exposure. Kejriwal used every weapon of communication Facebook, Twitter, Television – to create a strong anti-corruption image for the party. AAP created a distinctive brand in a highly competitive marketplace. The use of Gandhi topi and the broom as an election symbol was a brilliant decision.
The AAP effect: 10 prominent people who have joined AAP
Captain Gopinath (62): The founder of budget airline Air Deccan, Captain Gopinath joined the AAP.
Mallika Sarabhai (60): A bitter critic of Gujarat chief minister and BJP’s prime ministerial candidate Narendra Modi, danseuse, actor and social activist SYMBOL WENT WITH IDEOLOGY: Mallika Sarabhai joined the AAP. Prahlad Kakkar, Ad film maker Ashutosh (47): Senior editor and well-known TV They (AAP) asked for donation which is like asking for personality Ashutosh left his job at IBN7 to join the a token of commitment. If one would give the donation, AAP. Ashutosh made his decision public on Twitter. it obviously means that he/she is inclined towards the ideology. Also, the meaning of their election symbol ‘broom’ is very deep and could be interpreted in several Meera Sanyal (52): Meera Sanyal, The former chairperson and CEO of Royal Bank of Scotland (RBS, positive ways. In addition to being the most recognisable symbol, it India). goes with the ideology of the party and also connects to the lower strata of society. Another step was the ‘metro Sameer Nair (49): Former NDTV and STAR wave’ in which the volunteers created a buzz among the TV CEO Sameer Nair joined the AAP before the commuters against corruption. Delhi assembly elections to help the party formulate Around 10-15 party members would walk on Delhi’s communication strategies. Metro train platforms with the party cap and flag and tell commuters about the objectives of AAP. This sort of Adarsh Shastri (40): The grandson of former Prime basic ground work and approach helped them to reach Minister Lal Bahadur Shastri and son of Congress out to the grass-root level audience, which was otherwise leader Anil Shastri left his job as the sales head in sought to be earned by handouts such as alcohol and Apple Inc to join the AAP. gifts. Meanwhile, the educated class always knew that V Balakrishnan (48): Former CFO and board AAP has a consistent mission and face. member of Infosys, V Balakrishnan announced his decision to join the party. USE OF GANDHI TOPI BRILLIANT: Kanubhai Kalsaria (60): A former BJP MLA from Santosh Sood, An independent media consultant and Gujarat, Kanubhai Kalsaria has been at the forefront of former COO of all land and environment-related agitations in Gujarat Rediffusion Y&R also joined AAP. The new fundamental of Alka Lamba (38): Former NSUI member Alka marketing is to Lamba broke her 10-year-long association with the focus on imagery Congress to join the AAP in December last year. of competitors instead of focusing on your personal branding. AAP was successful in creating a section of people who had a HS Phoolka (58): Senior Supreme Court advocate HS Phoolka has decided to join the AAP instead of the common enemy, “corruption.” AAP succeeded in creating connection with the hottest Akali Dal. issues. The manifesto issued by AAP made many parties Source: Hindustan Times
10
Flaunte' Jan 2014
NDIM
First Cut
REUNION
I
t is often said that friendship is one of the most special gifts of life. We often cannot choose most of our relations, but friendship is that one bond that forms with our consent and heart. Spending most of our time with friends while growing up, facing life as it comes, solely with the assurance of having a friend beside us, being allies in small mischiefs, unknowingly leaving footsteps in the sands of time, we have all done that. But at times in the fast pace of time and amidst the twists that life brings with itself, we lose our grip over it. This was the fate of millions of such bonds between India and Pakistan during partition. Millions lost touch with their loved ones and had to give up their roots and migrate overnight, to either of the countries without any hopes of seeing each other again. This has been a sensitive topic between the two countries ever since, but that did not stop one of the leading corporate giants from taking it up and showing how to bridge the gap with just a bit of will and technology. Google India on November 13, 2013 presented its advertisement for Google Search named Reunion, on YouTube. The India-Pakistan partition in 1947 separated many friends and families overnight. Grieved by the partition, Baldev, a resident of Delhi, shares his childhood memories of hanging out with his friend Yusuf in Lahore and eating sweets, with his granddaughter. The grand-daughter decides to surprise her grandfather on his birthday by reuniting him with his childhood friend (who is now in Pakistan) after over six decades of separation, and with a little help from Google Search. Compelled by strong emotions, the grand-daughter on hearing her grandfather's story,she starts her quest of finding her grand-father’s long lost childhood friend Yusuf(who is in Pakistan).With some determination and a little help from Google Search, she tracks down Yusuf 's sweet shop in Lahore. She connects with his grandson, who helps her to plan a surprise visit from Yusuf on Baldev's birthday. she arranges a journey to New Delhi for a surprise reunion. The ad struck a cultural chord with Indians and Pakistanis, tugging at a string of their hearts. The emotional advertisement for Google's search engine
NDIM
has become a hit in India and Pakistan by surprisingly invoking a searing, devastating and traumatic period in the shared history of both the countries. Officially debuting on television Friday, the commercial already has been viewed more than 1.6 million times on YouTube. Google saw the India as a strategic market where the number of internet users is growing by the day. 120 million at the end of 2011, and expected to reach 300 million in the coming few years, google saw the opportunity for sharpening its focus on social media, cloud computing and solutions for small- and medium-size businesses and enterprises. "Yes, this is a sensitive topic, a part of history with bitter memories," Abhijit Avasthi, head of the Ogilvy India team that developed the ad, told The Associated Press. "But that was the whole point, which is to tell people that those memories are in the past, that there is a way to revive your connection with your lost ones." In the cut throat competition it is important to keep in mind that in order to effectively position one’s brand in the minds of the consumers, one has to be able to leave a long lasting impression. From a marketing and communication point of view the reason for such a video is clear. Is technology human? Not at all, but it can help humans. Who brings technology to life? Common people like you and I. What's beyond Google's doodle? Men and women that work to help other people to work, socialize, connect and meet friends. Maybe things are really going to change and hopefully are moving towards the human way of marketing.
Flaunte' Jan 2014
11
sPECIAL STORY
O
ne of the most talked about award shows, the 71st Golden Globe Awards, honouring the best in film and American television of 2013, was broadcast live from Beverly Hills, California, on January 12, 2014, by NBC. The event was produced by Dick Clark Productions in association with the Hollywood Foreign Press Association. Woody Allen was announced as the Cecil B. DeMille Award honoree for his lifetime achievements on September 13, 2013. Tina Fey and Amy Poehler were announced as the cohosts, and as well as for the 72nd Golden Globe Awards. The nominations were announced on December 12, 2013, by Aziz Ansari, Zoe Saldana and Olivia Wilde. Among the films and television shows that received
12
multiple awards American Hustle, Behind the Candelabra, Breaking Bad, Brooklyn Nine-Nine, and Dallas Buyers Club were worth mentioning. The event telecast on NBC continued its ratings momentum as it drew its largest audience in 10 years and its largest young-adult audience in seven years. This was the best demo score for the show since 2007. In total viewers, it was the biggest crowd since the 2004 show drew 26.8 million.
The Winners of the evening were :•Best supporting actress in a motion picture: Jennifer Lawrence •Best mini-series or TV movie: Behind the Candelabra •Best actress in a mini-series or TV movie:
Flaunte' Jan 2014
Elisabeth Moss •Best actor in a TV drama: Bryan Cranston Best TV drama: Breaking Bad •Best original score: Alex Ebert, All is Lost •Best original song from a motion picture: Ordinary Love, from Mandela: Long Walk to Freedom •Best supporting actor in a TV series, mini-series or TV movie: Jon Voight, Ray Donovan •Best supporting actress in a TV series, mini-series or TV movie: Amy Adams, American Hustle •Best actress in a TV series, drama: Robin Wright, House of Cards •Best supporting actor in a motion picture: Jared Leto, Dallas Buyers Club •Best screenplay: Spike Jonze, Her •Best actor in a TV series, comedy: Andy Samberg, Brooklyn Nine-Nine •Best foreign language film: The Great Beauty •Best actor in a mini-series or TV movie: Michael Douglas, Behind the Candelabra •Best animated feature film: Frozen •Best actress in a TV series, Comedy:Amy Poehler, Parks and Recreation •Best director for motion picture: Alfonso Cuaron, Gravity •Best TV series, comedy or musical: Brooklyn 99 •Best actor in a motion picture, comedy: Leonardo DiCaprio, Wolf of Wall Street •Best motion picture, musical or comedy: American Hustle •Best actress in a motion picture, drama: Cate Blanchett, Blue Jasmine •Best actor in a motion picture, drama: Matthew McConaughey, Dallas Buyers Club •Best motion picture, drama: 12 Years A Slave
The members of the Hollywood Foreign Press Association represent around 55 countries with a combined readership of more than 250 million. Their publications include
leading newspapers and magazines in Europe, Asia, Australia/New Zealand and Latin America, ranging from the Daily Telegraph in England to Le Figaro in France, L’Espresso in Italy and Vogue in Germany as well as the China Times, leading Brazilian web portal UOL and the pan-Arabic magazine Kul Al Osra. Each year members interview more than 400 actors, directors, writers and producers, as well as reporting from film sets and seeing more than 300 films. Members also attend film festivals in other countries in order to seek out interesting and innovative foreign language films and establish cultural bonds with directors, actors, jurors and fellow journalists around the world. All members are accredited by the Motion Picture Association of America. As the international box office has dramatically expanded in recent years, so has the Globes’ prestige increased. The awards now have the distinction of being one of the three mostwatched award shows on television. The prestigious event itself went through a new media makeover.For example, the #AskGlobes hashtag, which allowed the viewers to tweet in questions for celebrities in attendance, to the’Celeb Buzz’ image wall, gathering the best content across social networks, the team behind the event successfully managed to give its brand a significant makeover.Big names ranging from L’Oreal to CVS competed for second-screen attention during the event. The approaches showcased a broad spectrum from the tired to the inspired, with organizations like Citi Bike naturally integrating their product into the celebrity congratulations, while CVS integrated its savings program into the tweet stream. And for all of the attempts to wrestle in with new marketing trends, it was still a full advert that won the day. The Muppets stint on social media to get their message across, spoofing Internet outrage and troll ‘ignerence’ to create one of the funniest branded moments of the event.
Flaunte' Jan 2014
13
THE HOLLYWOOD FOREIGN PRESS ASSOCIATION COVERING THE ENTERTAINMENT CAPITAL FOR 71 YEARS
The Hollywood Foreign Press Association (HFPA) is a non-profit organization, the members of which are international journalists based in Southern California. The HFPA has about 90 members who disseminate information about movies and television to the
14
world through their various publications throughout the world. HFPA members attend more than 300 interviews and countless movie and television screenings throughout each year. The Hollywood Foreign Press Association’s annual Golden Globe Awards have enabled the non-profit organization to donate more than $15 million in the past twenty years to entertainment-related charities, as well as funding scholarships and other programs for future film and television professionals. In the year 2013 the donations reached a total of $1,567,650 in grants destined to 50 different entertainment-related non-profits, institutions and charities. Known worldwide for its glittering Golden Globe Awards ceremony held every January and its multi-million dollar donations to charity, the Hollywood Foreign Press Association had humble origins that stemmed solely from a group of journalists’ desire to efficiently and accurately cover all aspects of the world of entertainment. In 1943 the journalists, led by the correspondent for Britain’s Daily Mail, formed the Hollywood Foreign Correspondents
Flaunte' Jan 2014
NDIM
Association and conceived the motto “Unity Without Discrimination of Religion or Race.” It was an uphill struggle at first as the film industry had not yet realized the importance of foreign markets. At first the members held informal gatherings in private homes. As the membership grew, HFPA meetings were held in larger quarters, with the association selecting the Hollywood Roosevelt Hotel as the location for group functions. The group’s first special event was a luncheon in December 1947, at which a meritorious plaque was awarded to Harry M. Warner, president of Warner Bros., in recognition of his humanitarian work as the principal sponsor of the “Friendship Train,” which left Hollywood with food, clothing and medical supplies for the needy of Europe. Today the members of the Hollywood Foreign Press Association represent some 55 countries with a combined readership of more than 250 million. Their publications include leading newspapers and magazines in Europe, Asia, Australia/New Zealand and Latin America, ranging from the Daily Telegraph in England to Le Figaro in France, L’Espresso in Italy and Vogue in Germany as well as the China Times, leading Brazilian web portal UOL and the pan-Arabic magazine Kul Al Osra. Each year members interview more than 400 actors, directors, writers and producers, as well as reporting from film sets and seeing more than 300 films. Members also attend film festivals in other countries in order to seek out interesting and innovative foreign language films and establish cultural bonds with directors, actors, jurors and fellow journalists around the world. Membership meetings are held monthly and the officers and directors are elected annually. A maximum of five journalists are admitted to the
NDIM
organization each year. All members are accredited by the Motion Picture Association of America. The HFPA receives substantial licensing fees for the network broadcasting rights to the Golden Globe Awards and from associated activities such as Golden Globe Awards pre-shows. The HFPA has an annual grants program that distributes sums among various entertainment-related non-profits and to entertainment-related scholarships at major educational institutions. In 2010, the HFPA gave grants totaling a record $1,541,000 dollars, bringing their overall donations to more than $12 million.
Flaunte' Jan 2014
15
ARTICLEs
PEPSI ATOM Best Article of the Month
THE “NO JOSH COLA” Ambuj Gupta, IIFT
T
he war of Colas in the Indian market goes long back when Coca Cola successfully took over the brands nurtured and grown in size by the Chauhans of the Parle family. These included Thumbs Up, GoldSpot, Citra, Maaza and Limca. A couple of these brands (GoldSpot and Citra) were eventually discontinued to make way for Coke’s inhouse brands, Fanta and Sprite, but Thums Up and Limca continued to dominate the Indian market. Thums Up currently possesses 15% of the 2300cr Indian cola industry and despite outselling Coca Cola, Pepsi as a whole company lags behind The Coca Cola Company by a fair margin in terms of market share. Pepsi has a brand in almost every category to rival Coke but it is yet to come up with a formula to reduce Th u m s Up’s ever increasing market share. Thus, last summer, Pepsi eventually came up with “Pepsi Atom” with the hopes of adding weight to its product sales and launched the cola on 25th April, 2013 to cash in on the hype surrounding IPL for which PepsiCo paid Rs160cr to win the advertising and naming rights. The “Josh Cola” was made available across the country in various packages including a 250 ml can at an introductory price of Rs15, a 500 ml PET bottle at Rs25 and a 200 ml returnable glass bottles (RGB) which was made available in select markets at Rs10. The IMC plan was also designed keeping in view the
16
latest trends in the industry, leaving no stones unturned to garner maximum eyeballs for the product. Launched with the tagline: “Piyo Josh Mein, Jiyo Josh Mein”, Pepsi made its intentions clear to follow a heads on approach in competing against Thums Up. And as if the tagline was not enough, the television advertisements featuring Bollywood actor Sushant Singh Rajput made it clear that Pepsi is ready to battle against Thums Up. Even the cheerleaders during the IPL games were shown drinking from Atom bottles in the middle of all the dancing. However, while the three Ps seemed to be in place, the 4th and perhaps the most important “Product” seemed out of place. The mixture of cardamom, cinnamon, clove and several other unidentifiable ingredients didn’t go down well with the consumers, most of who had to think twice before going out to repurchase the item. Pepsi claimed to have researched and gained valuable consumer insight over a period of two years before dubbing Atom as the biggest beverage indo-vation (the name it coined for Indian based innovation) but the viability of this claim came under the microscope just a couple of months into the launch as the ambitious product failed to deliver its promise. Here are a few reasons why Atom turned out to be the “No-Josh” cola: Positioning: According to an Economic Times article, 30% of Thums Up consumers are women and the brand recently undertook a change in its promotional strategy by replacing Akshay Kumar by four youngsters, one of them a female. By using words like “Macho ka naya funda”, Pepsi failed to attract the female consumers. Pricing: Pepsi spent Rs160 Cr. to earn the naming rights of Pepsi IPL. What did its rival do? They slashed prices of their products to great success. Pepsi didn’t take a cue from this story and priced Atom at par with the competitors. Result: Atom failed to lure regular users of its rivals. Advertising: Pepsi print ads showed a mushroom shaped cloud over its newly opened bottle, reminiscent of the atom bomb blasts in the cities of Hiroshima and Nagasaki. The TVC showed a guy trying to save a damsel in distress only to make a fool of himself in the end. Social media reacted strongly to the ad by claiming that it showcases the message that one should not help others for the fear of making mockery of himself.
Flaunte' Jan 2014
NDIM
Digital Marketing Strategy: Perhaps the most hyped yet the most underused word in marketing is social media. Many companies are yet to understand the basics of digital marketing and Pepsi fell prey to the same with the launch of Pepsi Atom. The official twitter and Facebook page for the product could muster only few likes and as such the positive words about the product failed to catch up with the negative ones. Pepsi IPL scandal: The match-fixing scandal that cropped up midway during the IPL gained the most hype rather than the brands that were associated with the event. Pepsi could be dubbed unlucky for failure in this front. Thus, despite its numerous attempts, PepsiCo is yet to find a compatible competitor for Thumbs Up and although the company is yet to discontinue the product signs do not look too good for the future of Pepsi Atom, letting it to be dubbed as the “No-Josh Cola!�
Negative comments regarding the taste of Pepsi Atom on Twitter
NDIM
Flaunte' Jan 2014
17
ARTICLEs
Gillette
A shaving phenomenon Md Asad Azam, NDIM
G
illette is synonymous with Men’s personal care. For millions across the world, their day starts with a Gillette as they aspire to look their best. From a humble beginning in 1903 by King Gillette, it has evolved into an $18.3 billion brand with over 100 SKUs1. Razors, Shaving creams, Foams and Gels, Aftershave, Deodorant and even Razors for women. While most of its contemporaries have perished, it has managed to stay strong and young, even after 100 years of existence. With an annual sales turnover of $ 8 billion, it is ranked among the top brands of today. Their popularity is massive, as evident from the fact that people don’t ask for a safety razor, they ask for a Gillette. It’s generic, just like Surf or Godrej. The Gillette Company (also having Oral-B, Duracell and Brawn in its portfolio apart from Gillette) was taken over by FMCG behemoth P&G in 2005 in a $57billion stock deal. P&G has always been known for its knack for innovation and Gillette has followed this culture very closely. There are umpteen products offered under the brand name, it boggles the mind and forces the consumer to buy one product or another. By frequently offering new products and adding new variants, it has managed to beat the competition time and again and also competed with itself. Brands often shoot multiple products at consumers within the same segment to ensure higher purchase of their brand, which is popularly known as ‘Cannibalization’. Brand cannibalization is practiced by many top brands globally, and is especially popular in FMCG. Gillette however has taken it to a new level. In one particular advertisement of Gillette Fusion, brand ambassadors Tiger Woods and Roger Federer are shown chucking their Mach 3 razors. The campaign called ‘5 is better than 3’ which clearly wanted their existing Mach 3 consumers to ‘move up the ladder’ and start using Fusion with 5 blades instead of 3. Brilliant marketing or Unnecessary Exaggeration? There are supporters from both side of the camp, but it take some guts to come up
18
with a promotion like this. The promotions have made sure that Gillette holds its stronghold. It enjoys 70% global market share in safety razors and 50% in shaving creams. All of this success didn’t come without its share of criticism. It has drawn flak for making ‘minute changes’ in its products and asking consumers to upgrade while they don’t really need the upgrade. Not to forget the revelation from an Industry insider that they earn in excess of 3000% profits on a pack of 4 blades. Now who said that one needs to operate on razor-thin margins in turbulent times? In India, the Mach 3 series have done decent sales while Turbo and Power have struggled which can be pertained to the costs of the razor and also the replacement blades. Gillette’s core business in India however, comes from the low cost ‘Guard’. Truth is, Guard accounts for over two third of the razors sold in the Indian subcontinent. It is nothing but marketing research (That P&G literally invented and has championed) that can be given credit for the success2. Expert researchers from around the globe, made 300 visits to various rural areas in 2007 to get insights on the market and shaving culture. Through acute observation and immaculate analysis, they developed the product to suit the average Indian. It’s cheap and does the job well. P&G had proved that localization is a formula to ensure acceptance and ultimately securing desired bottom line. The world leader in personal grooming is not exclusive to men’s products. The Venus series razors which is exclusively for women, compete with Hair removal creams, strips and other similar solutions. It offers a pain free solution for those having an aficionado for smooth skin. With full market coverage, Gillette is the Goliath that looks unbeatable by any David. Gillette is very popular on social media. Rivals can envy the fact that its Twitter page has 50,000 followers while its Facebook page has 2 million likes. One of their posts read “Julius Caesar had to have his facial hairs plucked out one by one. His barber would have loved us.” No wonder with communication like this, they have quite a following. Gillette is undoubtedly a jewel in P&G’s portfolio and is here to stay.
Flaunte' Jan 2014
NDIM
BIZ QUIZ Q1. Which Indian city has recently inaugurated the world’s longest free Wi-Fi zone of 20 km? Ans. Patna Q2. Bill Gates has invested in a San Francisco start up that is developing a Vegg..What is a Vegg? Ans. Vegetable Egg Q3. One of The founders of Whatsapp was turned down by Facebook in 2009. Now his creation has been bought by them for 19 Bn$. Name him. Ans. Brian Acton Q4. In which country has a restaurant devised a pneumatic system to deliver burgers on the tables of customers at 87 mph? Ans. Christchurch, New Zealand Q5. Which country will soon implement a ban on two wheelers and three wheelers that may impact Bajaj Auto adversely? Ans. Egypt Q6. This bride’s wedding attire made up of 5kg of exquisite gold jewelry has become the talk of the social media. She is the daughter of CEO of which company?
Ans. Muthoot Finance co. Q7. CMD of which Indian PSU has written a book titled Management by idiots? Ans. NTPC head Arup Roy Chaudhury Q8. Who has acquired the Vaio division of Sony that makes and sells PCs and Laptops? Ans. Japan Industrial Complex Q9. Who has acquired the Motorola Mobility business from Google for 2.91 Bn $? Ans. Lenovo Q10. Besides India, which emerging market economies are included in Fragile Five? Ans. Indonesia, Turkey, Brazil and South Africa Q11. Narendra Modi has proposed a Group of nations called ‘Sons of Sun’ where India will take a lead. What is this group supposed to do? Ans. Sons of Sun is a group of countries who have high solar energy potential. This group will come together to do R & D in solar power Q12. Which unlikely company has designed a tamper proof smart phone where the data is totally secure? Ans. Boeing
NDIM
Flaunte' Jan 2014
19
Snippets Air India plans to offer Wi-Fi on aircraft
Air India Ltd (AI) plans to offer Wi-Fi on both its wide and narrow-body planes that are used for international and domestic flights, respectively, for a fee. Rohit Nandan, Chairman, Air India, has set up a panel of top AI officials to examine the technical aspects and ensure that onboard Wi-Fi connectivity happens in a cost-neutral way for the airline and helps the airline earn some money. Francebased in-flight entertainment and connectivity company, Thales, has been asked to make a presentation to the AI management.
Tirupati Balaji goes international, Palau Government to issue coins Reflecting the global popularity of Tirupati Balaji, the Government of Palau, an island nation in the Pacific Ocean, is issuing a limited collectors' edition coin dedicated to the deity. Studded with Swarovski crystals and a small diamond, the silver coins are minted in German Mint and would be sold in Kolkata- said numismatist Alok K Goyal, the authorized marketer of these coins.
Wal-Mart sets up new company in India Global retail giant Wal-Mart has registered a new company in India as it prepares to enter the country's lucrative multibrand retail market with a new partner. The American retail major and Bharti Enterprises decided to part ways in October last year, bringing an end to their six-year long partnership. The retailer has registered a new company called 'Wal-Mart India Private Ltd' in the country, according to the data available with the ministry of corporate affairs.
Nirbheek, India's first gun for women Giving more power to women to defend themselves and as a tribute to December 2012 gang rape victim Nirbhaya, the Indian Ordnance Factory, Kanpur, has manufactured Nirbheek, a .32 bore light weight revolver, India's first firearm designed for women. At 500 grams, it is also the first IOF handgun made of titanium alloy.
20
Flaunte' Jan 2014
Facebook acquires Bangalore based Little Eye Labs Facebook has acquired Bangalore based Little Eye Labs, a company building performance analysis and monitoring tools for mobile app developers. The acquisition has been confirmed on the website of Little Eye Labs.The acquisition is an obvious indicator of Facebook's mobile ambitions, which have been on the strategy tables since 2013. When it comes to access via mobile devices, Facebook has lagged behind rivals like Twitter.
Xolo inks deal with Liverpool FC Xolo, a premium devices brand of Lava International, has entered into an exclusive partnership with Liverpool Football Club to become the latter’s official mobile handset partner for South Asia. As part of the two-year agreement, Xolo users in Sri Lanka, Bangladesh and Nepal will be able to access club specific mobile content and merchandise. Sources suggested the smartphone company will spend Rs. 100 crore in promoting football in India. However, this could not be independently verified.
Nepal to Become a Free Wi-Fi zone The Nepal government has announced a unique and ambitious plan to turn the Himalayan country into a free Wi-Fi zone, government officials said. Due to lack of resources and absence of necessary infrastructure necessary for the purpose, the plan has surprised many, Xinhua reported. The task force was formed under the leadership of Mahesh Adhikary, member of Nepal Telecom Authority (NTA), the government-owned telecom regulatory body of Nepal, and has been asked to submit the report along with recommendations to the ministry within 30 days.
Yellen sworn in as first woman Fed chair
Yellen succeeds Ben Bernanke to become the first woman to head the Fed. Her term as chair ends February 3, 2018. The 67-year-old was sworn in by the Fed governor Daniel Tarullo, the senior member of the Fed's sevenmember board, in a brief ceremony in front of a fireplace in the Fed's massive board room. Her husband is the Nobel-winning economist George Akerloff.
Govt launches indigenous glucometer costing Rs.500
Bringing relief to millions of diabetics who spend a substantial amount of their earnings on testing their blood glucose level, the Health Ministry on Monday launched indigenous, affordable testing kits. The launching of two kinds of glucometers and testing strips will make mass screening and detection feasible. The glucometers will now cost between Rs. 500 and 1,000 as against the price of Rs. 1,000-2,500 for the imported instrument. Each glucostrip will cost between Rs. 2 and Rs. 4, down from Rs. 18-35.
NDIM
Flaunte' Jan 2014
21
Bhagav
M
anagement is a body of knowledge that enables entities to deal with a multitude of situations involving people, process and the environment, to ensure work is done efficiently to deliver goods and services useful to the society. Good management must result in greater satisfaction for all stake holders. If we carefully study the Gita, we infer that the central issue is all about doing work (karma yoga), in the most efficient manner. In the Bhagavad Gita, Sri Krishna's first lesson to Arjuna is to train his mind to the notion of time that is essentially long term (Chapter 2, Slokas 11-13). A good understanding of this helps managers to feel less pressurized of performance targets in the short run and instead develop some conviction to engage in activities and decisions that seek to create a balance between short term and long term. Change management becomes easier as they develop comfort in the fact that people come and go and good principles and ideas must remain and drive choices in organisations. They will also begin to realise (as it happened to Arjuna) that whenever they face complicated and apparently insurmountable problems, one way to broad-base the problem and search for acceptable solutions is to revisit
22
the notion of time. There is an important distinction between effectiveness and efficiency in managing. Effectiveness is doing the right things. Efficiency is doing things right. The general principles of effective management can be applied in every field, the differences being more in application than in principle. The Manager's functions can be summed up as: Forming a vision, Planning the strategy to realize the vision, Cultivating the art of leadership, Establishing institutional excellence, Building an innovative organization, Developing human resources, Building teams and teamwork, Delegation, motivation, and communication, Reviewing performance and taking corrective steps when called for. The critical question in all managers" minds is how to be effective in their job. The answer to this fundamental question is found in the Bhagavad Gita, which repeatedly proclaims that "you must try to manage yourself." The reason is that unless a manager reaches a level of excellence and effectiveness, he or she will be merely a
Flaunte' Jan 2014
vad Gita
face in the crowd.
new behavioural patterns consistent with this idea. The current dominant paradigm 'I must enjoy fruits of action-else no work' will generate enormous amount of wasteful effort. Embracing the overarching principle of karma yoga will have to be the alternative paradigm for improving the quality of management in organizations. There are four aspects to the definition of work that Shri If managers can take these two important lessons from Krishna articulates: the Gita, we can not only build an alternative paradigm of management but also succeed reasonably in the (a) The doer has the right to work practice of management. (b) The doer has no control on outcomes/fruits of action (c) The doer has no control on the root causes of the fruits of action d) There is no choice to revel in inaction Managers will revolt at the idea of doing work but having no desire and/ or control on outcomes. However, we do not realize that during our life time there have been several occasions when we indeed practiced this virtue. Developing a good sense of neutrality is an important pre-requisite for discharging one's work very effectively. This may appear like a simple idea. However it requires deep contemplation of this idea and a conviction of its usefulness. Only out of such a conviction can one generate
Flaunte' Jan 2014
23
Visitor’
K
eeping up with it’s tradition NDIM welcomes the whose who of industries to hav by the students. Eminent speakers shared their invaluable thoughts and views w challenges for a manager. Ashwini Bhatnagar, Sr.Ass.HR from Fiserv India, Anup Jain, Analyst, from Sare Hom Ltd., Satinder Singh from Mankind Pharma, Satish Kumar Singh, Sr.Manager, PNB, Sa were amongst the few who graced the institute with their presence. The objective of hav current trends in the Corporate World, availability and employability of jobs for the stud for upgrading themselves for the upcoming jobs and challenges in the long run.
Satis h of K Sharm orea
Satish Kumar Singh Sr.Manager PNB 30-11-2013
d er nkin d a in Sat gh,M Sin arma Ph
24
Hee Koo,chairman, Geo Young Co. Ltd.
Flaunte' Flaunte' Jan 2014
Saumil Anand Gupta,Director,Pharmabiz Connect
NDIM
’s Opine
ve interactive sessions with the future managers. These sessions were thoroughly enjoyed with the students and interacted in order to give them a glimpse of opportunities and
mes, Benjamin Pfrang, German Associate, Hee Koo,Chairman of Geo Young India Co. atish Sharma of Indo Republic of Korea, Saumil Anand Gupta of Pharmabiz Connect ving these eminent personalities was to hone the concepts and skills prevailing as per the dents. Students got a great platform to interact with them and enhance their knowledge
ma,s ec
, Ind
orep ublic
Ashwini Bhatnagar Sr.Ass.HR Fiserv India 7-12-13
Anup Jain,analyst,Sare Homes
z
Benjamin pfrang, Gserman Assosiates, Imag India
NDIM
Flaunte'Flaunte Jan 2014 '
25
TEAM: FLAUNTE’ Core Team Abhishek Mehta Anurag Verma Gurvinder Singh Adarsh Chandra Prakash Senapati
Supporting Team
Shreemanti Basu
Suvajit Biswas Apurba Sequeira
Arnab Karmakar
For feedback, suggestions and queries, kindly follow us at: https://www.facebook.com/FlauntNDIM http://issuu.com/flauntndim https://twitter.com/FlauntNDIM Or send it to: markomania.newsletters@gmail.com Or you can contact: Anurag Verma Abhishek Mehta
+919953630106 +919958589900
NEW DELHI INSTITUTE OF MANAGEMENT, 60 & 50(B&C),Tughlakabad, Institutional Area, New Delhi-110062, Phones: +91-11-29956566/67/68/69, 40111000 Fax : +91-11-29965136 Toll Free : 1800419-0606, E-mail : info@ndimdelhi.org, Website : www.ndimdelhi.org
Flaunte' Jan 2014