EDITOR’S DESK Dear Readers, It gives us immense pleasure, delight & privilege to launch the first ever e - magazine: FLAUNTE’ of marketing club: Markomania. Our sincere thanks to DR. Gajendra Sharma, (H.O.D, Marketing, NDIM) & VP, Partha Pradhan, Markomania Club for their unconditional support and sanctity given to the magazine. We are also very grateful to the Chairman, Mr. V.M. Bansal and the Director, Dr. R.K. Bharadwaj for acknowledging our efforts and showing faith in us which, eventually, helped us to bring out the best for the magazine. The objective behind the magazine’s launch is to bolster the marketing acumen of the students and simultaneously to spread cognizance about the latest updates and events taking place in the world of marketing. Flaunte’ will certainly enthrall you all with its intriguing and ever so refreshing content in such a way that all of you will develop a penchant towards it sooner or later. Flaunte’ will be launched in the first week of every month irrespective of exams, festivals, seminars or holidays. Therefore, at the end of every edition we would be announcing for the articles to be published in the next edition of the magazine. So, brace yourselves and start scratching your writing ability. In a nutshell, it is a marketing dose which will acquaint the readers with the marketing world in a pragmatic way. We hope this issue makes an informative read. Our endeavour continues to be able to add more value to your reading and we are working incessantly towards it. Read on to find out for yourself! Let us know your thoughts and be sure to come visit us at https://www.facebook.com/pages/Flaunte/158791384268262# for more of the latest integrative marketing news and stories. Happy Reading! Cheers!! Team – Flaunte’ Markomania – The Marketing Club of NDIM
CONTENTS COVER STORY - AMBUSH MARKETING
3
SNIPPETS
7
ARTICLES
9
SPECIAL STORY - CES 2013
18
CHANAKYA NITI – Harley Davidson
22
FIRST CUT – Parle G
23
BIZ QUIZ
25
VOX POPULI
26
MYTHOLOGICAL MANAGEMENT LESSONS
27
AMBUSH MARKETING GAME WITHIN A GAME The term “ambush” is used to connote the older method of warfare in the present era of commercialization, competition and advertisement. The word “ambush” means literally “an attack from a hidden position”. Ambush marketing is usually employed at the times of big sporting events, where big corporations’ cash is on the names of the sporting events without paying the requisite fee, which constitutes the crux of “direct ambush advertising”. However, it is not sporting events only which become the mode of deploying ambush marketing. Of late, India has witnessed a spurt in the cases of ambush marketing even without any association with the sporting events. Ambush marketing was first witnessed in 1984 Olympics and the 1996 Cricket World Cup which highlighted the concept in India. During the 1996 World Cup, although Coca Cola was the official sponsor of the tournament, Pepsi ambushed the campaign by coming up with the tagline “nothing official about it”. SOME INSTANCES OF AMBUSH MARKETING The billboards in the snap demonstrate a perfect example of ambush marketing. Here, P&G owned Pantene initially created a buzz by raising a billboard displaying - “80% of the women were satisfied after using the “mystery shampoo” and were completely entranced” but then it didn’t took long for the HUL owned Dove to ambush the campaign by raising a billboard right next to the Pantene’s which displayed “There is no mystery. Dove is the no. 1 shampoo.” In this snap, there is a billboard of Jet Airways displaying the message - “We’ve changed” but one can certainly not write off the flamboyance of Kingfisher which ambushed the campaign by putting its billboard atop Jet Airways’s with the message - “We made them change”.
This is quite an interesting one. Here, Coke has a hoarding on which it is written “COCA COLA SECOND FLOOR”. Pepsi ambushed the campaign & took full advantage of Coke’s innocence by putting its billboard underneath Coke’s which displayed - “PEPSI- EVERY WHERE”.
Rona recycles Apple's leftover paint Rona, a home improvement chain in Canada, had this banner placed below Apple's iPod nano billboard near the Jacques Cartier Bridge in Montreal. The text reads "Nous récupérons les restes de peinture" translating into, "we recycle leftover paint." Apple's "nano-chromatic" campaign was a global campaign, but Rona and its agency, Bos, seem to be the only ones who pulled off an ambush campaign like this.
Audi and BMW get in a street fight in Santa Monica In 2009, German automakers Audi and BMW got into an infamous billboard war in Santa Monica, Calif. Audi set up a billboard for its A4 with the words, "Your move, BMW." Sure enough, BMW responded with a picture of its M3 and the "Checkmate."
Fans took to Photoshop to craft third and fourth responses, which included BMW flying a blimp with a picture of its F1 entry. Both automakers tried to downplay the incident. Audi claimed its billboard was up for almost a year before BMW responded. BMW said it only rented the billboard for two weeks SAMSUNG – NOKIA: LOCK HORNS In a packed theatre, scores of excited movie buffs sat through a long march of commercials patiently, but the organizers were dismayed. It was an exclusive premier of SRK-starrer Ra.One for mobile phone maker Nokia's premium users at PVR Select City Walk mall in Delhi, but the advertisements that had been running for the previous few minutes were of Samsung mobile!
That was in Oct, 2012. Two months later, when Nokia rolled out Lumia cabs in Bangalore as part of its biggest marketing drive in the country to promote its first Windows smartphone, Samsung brought out its own Omnia cab and stationed it outside the Lumia showroom for a few days. Analysts call it ambush marketing, Samsung says it's not. Whatever, but the cut-throat competition between the country's top two mobile handset players looks like the old Cola War between Coca-Cola and PepsiCo and refreshes memories of Pepsi's 'Nothing official about it' campaign during the 1996 cricket World Cup that introduced the concept of ambush marketing in India.
The Masters of Ambush: Nike The success of Nike is linked to Michael Jordan. After his debut in the NBA in 1984, Jordan immediately became a Superstar. Nike didn’t lose the chance to sign him: it was the beginning of the most successful endorsement of the History of sports. The black and red Air Jordan I broke the tradition of white basketball shoes and the NBA responded by banning them. Jordan kept on wearing them and Nike was glad to pay the fines. The following year, Jordan joined the Slam Dunk Competition wearing Swoosh apparel, ignoring an unwritten rule that you wore All-Star stuff to the All-Star Game. Some of the AllStars, particularly Eastern teammate Isiah Thomas and Western foe Magic Johnson, supposedly took umbrage at this. In 1992 Reebok had exclusive rights to produce warm-up outfits and other apparels for American athletes at the Olympic Games. Michael Jordan and other members of the USA basketball team had contracts with Nike and refused to bare the Reebok logos when they accepted their gold medals. Jordan covered the Reebok logo with an American Flag. While companies such as Adidas are used to invest strong in official event sponsorships, Nike strategy is oriented towards athlete endorsements to the point that 12 out of 12 USA Basketball players in London 2012 were wearing Nike Shoes.
Nike gets clever in latest example of Olympic ambush marketing Nike’s latest attempts to get around Olympic marketing limitations came on 25th July, 2012, London Olympics with the company's new ad on YouTube touting athletes from places called London all over the world except England. Nike's campaign is clearly designed to cash in on Olympic fever and get one over on archrival Adidas, which has paid around $60 million to be an official London 2012 global sponsor. Locations for the TV ad include East London in South Africa, Little London in Jamaica, London Ohio in the US and a health club called London Gym. The Washington County sporting goods giant isn't an official sponsor of the Olympic Games that started Wednesday and commence in earnest after Friday's opening ceremony in London. Because of that, it's prohibited from marketing specifically around the Games thanks to an International Olympic Committee that's fiercely protective of its brand.
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SNIPPETS Tata Starbucks opens outlets at Delhi airport Tata Starbucks Ltd, the 50:50 joint venture between Starbucks Coffee Company and Tata Global Beverages Ltd, has entered Delhi with two stores at the New Delhi Indira Gandhi International Airport. Starbucks entered India in October 2012 and has four stores in Mumbai. The store will be open 24 hours at the international terminal and from 5 a.m. to 9 p.m. at the domestic terminal. Starbucks plans to extend its presence in this segment with the launch of Starbucks stores at the Chhatrapati Shivaji International Airport in Mumbai by the end of March 2013.
Mercedes-Benz India opens the doors of its largest car showroom Mercedes Benz India, the third largest luxury car maker in the country has opened a new flagship store with 26 car display and 60,000 sq ft. space in South Delhi. The new showroom is built at an investment of Rs 70 crores.This showroom, also marks T&T Motors’ 15th anniversary as Mercedes-Benz dealer. Inaugurated by Eberhard Kern, Managing Director & CEO, Mercedes-Benz India, Ravi Talwar, Chairman, T&T Motors and Vidur Talwar, Managing Director, T&T Motors., this new showroom employs 90 sales personnel, which Mercedes Benz says, are committed, qualified and hand-picked. The new dealership of German auto maker is strategically located at the Mathura Road, which seems to be a developing auto hub of Delhi NCR. Modi roars again, may boost PM ambitions Narendra Modi won a fourth successive term as the chief minister of Gujarat, a victory that could launch the prime ministerial ambitions of one of the country's most popular but controversial leaders. Of the 182 seats in Gujarat, the BJP won 115. It is a victory for good governance, growth and development. Agriculture has been growing at 10 percent. His supporters' admiration is shared by Indian and foreign business leaders who extol Gujarat's ability to cut through red tape and find cheap land for factories, drawing investment from firms including Ford Motor and Tata Motors.
DSK Hyosung launches two super bikes Aquila Pro and GT650R -2013 Premium super bike manufacturer DSK Hyosung has launched two new super bikes in the country – Aquila Pro (650 cc) and GT650R -2013 edition. DSK Hyosung is a partnership between DSK Motowheels and S&T Motors, South Korea, manufacturers of the Hyosung brand. DSK Motowheels has a CKD plant in Wai, Maharashtra, and 21 dealerships across the country. The Aquila Pro has been priced at Rs 4,99,000 (Ex-Showroom Delhi), which will sport a 650cc mill. The motorcycle will be powered by a V-twin, oil-cooled 4-stroke engine. Aquila Pro produces 74bhp of maximum power at 9000 rpm, and 62.1 of maximum torque at 7500 rpm. Toyota to invest $401 million in Thailand plant for new eco car Toyota, major automakers in the world today, have announced investment of 12 billion baht (INR 2,156 crores or $401 million) in construction of a new plant at Gateway 2 in Chachoengsao, Thailand. This new plant is actually an expansion of the company’s existing facility at Gateway and will be operational by third quarter of this year. Once ready, it will have an annual capacity of 300,000 units per annum. Toyota eco car will be built under Thai Government’s Eco Car project which encourages manufacturers to sell these high fuel efficient vehicles with low tail pipe emissions in the country. The Thai Government offers auto makers attractive incentives to produce these cars under the Eco Car project. Toyota has two plants in Chachoengsao, both with capacities of 230,000 units per annum.
Microsoft Patented the "Holodeck" Microsoft has patented for a future -generation gaming system which could theoretically bring the HoloDeck from Star Trek to life. an "immersive display It is experience" beaming images all over the room, accounting for things like furniture, and bending the graphics around them to create a seamless environment.
ARTICLES Brand Ratan Tata – Always lead from the front
By Anurag Verma
Ratan Tata, an iconic corporate leader, retired as Chairman of the USD 100-billion Tata Group after a 50-year run, on his 75th birthday, 28th Dec, 2012 handing over the business empire to Cyrus Mistry, the first chief appointed from outside the immediate Tata family in its 144-year history. He led the Tata Group brilliantly and successfully in expanding and globalising it." He transformed the Tata group into a streamlined conglomerate of more than 100 companies and earning a global reputation for his consolidation and expansion strategies. It looks like the brand attributes which made him the most powerful Indian CEO brand globally and also in 2007, he was listed among the 25 most powerful people in world business by ‘Fortune’ magazine. The USD 100 billion house of the Tatas perceived as the best Indian brand in the world, says ASSOCHAM survey, 23rd Dec, 2012. In today’s marketing world, the brand aspect of the CEO help the brand of the organization and vice versa and in Tata case, it seems, the brand attributes of the organization and Ratan Tata are compliment. His real legacy to the group is the development of an international strategy and the creation of the Tata brand. The personal brand has 3 features. Core identity defines who you are at a deeper level and what are your core values. Some of the core values of the Ratan Tata brand are credibility, capability, empathy, service, honesty, integrity and trust. A core value is only a true core value if it has an active influence and if the person manages to live by it, at least most of the time. His dream car Nano that brought him close to the hearts’ of common man.
The second feature is the Brand projections and actions that are aligned to the core values of the brand. Ratan Tata demonstrated though his actions that nation building, giving back to the society and and making Tata a successful global brand is close to his heart. This, in spite of the fact, that in 2010 alone, the Tata trusts disbursed Rs. 500 crore to various causes and institutions. A leadership acts as an engine that takes care of early planning and picking the right people for the future and trains them to take on bigger responsibilities for whole business enterprise. This demonstrates how he empowered and built a leadership pipeline. The third aspect of the personal brand is the Brand perception. Most of the leaders uses their core values which results in success and become the brand perception in the minds of public. While Jack Welsh did a lot for people development and building leaders in GE, at one time his brand perception was “Neutron Jack”. Keeping these values, we could assume that Ratan Tata most of the time operated brand. Tata companies share five core values – integrity, understanding, excellence, unity and responsibility. In his period, he ensures adherence to the Tata ethos and value system. Tata Group's name is synonymous with India's industrialization. Ratan Tata’s brand perception is aligned with his brand identity. He is considered, credible, authentic and effective. Therefore live up to the brand Ratan Tata as he focused on 3 things to make Tata as a successful global brand: efficiency, globalization and innovation. Now, the biggest challenge for Mr Mistry would be to ensure that the Tata companies are able to sail through the global slowdown as he plans to invest more than 450 billion rupees ($8.2 billion) over the next two years, and also there is need to maintain status of the best Indian brand in the world.
BRAND EQUITY OF TENDULKAR - PRE & POST
By Abhishek Mehta
On Sunday, the 23rd of December, when most of us were in a laid back mood, the iconic Sachin Tendulkar created ripples by deciding to call it quits from the (ODI) one day international format. It was surely heartbreak, not only for the aficionados’ but also for the brands, the corporate houses who had Tendulkar for so long as their brand ambassador. The Little Master currently endorses as many as 17 brands and the brand value stands at a staggering Rs.200 crores. The list of his endorsements includes some of the heavyweights namely- Adidas , BMW, Audemars Piguet, Aviva, MRF, Boost, Sunfeast, Reynolds, VISA and the list goes on but, if industry sources are to be believed ,then all the aforesaid brands have become pensive after having learnt about Tendulkar’s retirement and are set to do some revisions( not now necessarily) which would ,eventually, affect the brand equity of the cricketing Legend. As much as 50% or more of the brand value of Tendulkar is
expected to descend in two or three years time because there would not be such prominence of him which was used to be there earlier. In his 23 year, glittering long carrier, he did not only hammered the bowlers but also struck astonishing deals by raking in jaw dropping amounts, be it the 200 million deal with Coca Cola, the 10 crore/annum deal with Adidas or the 13 crore deal with S Kumar’s Nationwide (SKNL). Even companies like Luminous and Eureka forbes have cashed in big time by roping in Tendulkar as their brand ambassador. There was a time when the Master was referred as the “most marketable sportsman” because of his stature and the aura & more importantly,the sublime form which he was in during the period which was duly exploited by the machiavellistic corporate .
Tendulkar has always remained the darling of marketers and for some he’ll continue to be. According to ad filmmaker Prahlad Kakkar “Sachin is a highly desired role model for brandsa non-controversial achiever and that image will go beyond his playing years” while Madhukar Kamath, Group CEO & MD at Mudra Group believes that “ there is a new brand that Sachin sees for himself after 40, but doesn't see Sachin, the cricketer in his new brand”. Santosh Desai, CEO, Future Brands has his own and different version towards the brand equity of Tendulkar post his retirement. He states that” the nature of Tendulkar’s appeal will change in a manner that as he moves from being a hero to more like a mentor, he will certainly attract more corporate brands rather than trendy and hip ones”. Meanwhile, Camera maker Canon, which had inked an endorsement deal with Tendulkar in 2007, has decided not to renew the contract when it is about to end, citing a "change of strategy and youth focus". Consumer goods maker Jyothy Laboratories, too, did not renew its contract with Tendulkar a couple of months ago keeping in mind the fag end of his ODI carrier. Is this the beginning of an end? Well, at least by looking at the portends, one can say that Sachin’s brand equity has taken a beating and his poor run in recent months is only exacerbating the situation. Being a hardcore fan of the batting god, there is only a wish that his brand equity doesn’t end on the lines of his ODI carrier which was abrupt in nature because who knows that the Master has already inked his last endorsement, (probably with Coca Cola) & all of us are anxiously waiting for his next commercial just the way we were waiting for his next ODI innings after the match he played against Pakistan.
MICROMAX - Increasing Foot print
By Dhruv Wadhwa
Not so long ago, the Delhi based mobile handset maker entered the territory dominated by the likes of Samsung, Nokia and Sony but soon it managed to carve out a market for its own range of mobile phones. Micromax focuses on today’s generation which is more than ever aspiring, enthusiastic, fun loving & experimenting. Further, Pratik Seal, Country Head , Marketing , Micromax India says ,”The design that reflects the brand ‘s personality-that is young, innovative, audacious, outgoing, dynamic, fluid and energetic with an international appeal-will surely be on the top”. Micromax has already tasted success with its mobile phones becoming a roaring hit and riding on the profitability waves, the company announces its foray into the home entertainment segment with the launch of new range of LED TVs, Home Theatres, 3D Blu Ray and SMART Stick, the Android dongle which will make TV viewing a smart experience. With this launch, Micromax aims to become the new age screen partner for consumers; be it phones, tablets or televisions. Micromax has set up a 1 lakh sq. ft. of manufacturing facility spread over 5 acres, with a production capacity of 2,000 LED TV units per day at Rudrapur, Uttrakhand. The facility will also double up to manufacture the tablet PC Funbook and mobile accessories, which in the last 6 months has received tremendous response. The LED TVs will range from 24" to 55" and will be competitively priced between Rs. 15,990 and Rs. 1,29,990. It all started in the year 2008 when Micromax (founded in 1991) entered the Indian cell phone handset market in March,2008 and had a market share of 0.59% . Within six months the company registered record sales & since then seen a continuous rise. Micromax launched its first phone in rural market with a very unique USP-30days standby battery time. The brand was launched i.e. X1i from a consumer insight that most of rural households do not get enough electricity to recharge phones on daily basis. The success of X1i egged the company aggressively make further inroads into the market. Indian base manufacturer, Micromax possibly seems to be one of the most aggressive move to entice the market sales in the Indian Smartphone arena from the Global rival prevailing in the market (Samsung, Nokia, HTC).They launched phones starting from affordable range viz. Rs 1250-12500 including its successful products Q5, Q7, Bling, Android Thereafter, Micromax decided to take a step further and launched a data card viz. new pocket 3G wireless router MMX400R on 4th May, 2011. Then also Micromax decided to go
further to compete with the market and launched Funbook tablet on April 3rd, 2012 powered by Android 4.0 Ice Cream sandwich and 7’’ capacitive display and mini USB port. After creating a category od edutainment tablet, Micromax then introduced a 10’’ tablet which promises more fun and education to all consumers price at Rs. 9999. The new Funbook Pro boasts of a thin-and-light design, brilliant display, powered by Android 4.0 Ice Cream Sandwich, easy multitasking, customizable home screens and a full suite of familiar applications-as well as powerful new ways of communicating and sharing. And, finally with its foray into the home theatre segment, Micromax is all geared up to make its presence count by taking on some of the industry leaders. Commenting on the launch, Rajesh Agrawal , Managing Director and Co-Founder, Micromax “Micromax is increasingly focusing on the smart devices and has introduced a series of Android powered devices in the screen range of 5” to 10”. As consumer preferences evolve and they want their devices and experiences to be smart and personal, we will feel the future of TV will depend on user, programming, connectivity and personalization.” Micromax could be a better bet in the upcoming years if it Rs. 8 billion IPO is successful. It can use the proceeds to ramp up its marketing spend considerably.
NOKIA – Out but not wiped out
By Mritunjoy Das
Sagging sales, stifling innovation and cut-throat competition may be apt to describe Nokia’s status quo but certainly, it cannot be written off. Nokia is the global leader in mobile communication whose products have become an integral part of everyone’s life around the world. Every day more than 1.3 billion people use their Nokia mobile to share their experiences, access information and simply to speak to one another. Nokia’s technological and innovated products have made it one of the most recognized brands in the world. Nokia Siemens Networks is one of the leading providers of telecommunication infrastructure hardware, software and services. But in recent times, the world’s top position in mobile industry has been overtaken by Korea’s Samsung. In the popular narrative of Nokia's eclipse, it is Apple's iPhone that steals the light, and It is also losing its sheen in the basic phone market, which had been a reliable generator of profits and carried the promise of years of strong growth in emerging market. Its basic phone sales fell 16 percent in the first three months of 2012, and have fallen in four of the last five quarters, while competitors like China's ZTE and Huawei have been growing rapidly. In 1stquarter of 2012 its sale
shrank by 62% from previous year. Although the frontrunner of a smart phone was Nokia, but it was overtaken by Apple and Google with iPhone and Android terminal respectively. The reason behind this was that it keeps on focusing on their Symbian OS too much. Currently three-quarters of smartphone’s OS is occupied by iOS and Android, but Nokia did not apply for that mainstream. Despite of this, many market analysts say that Nokia will return back to its numero uno position because of its strong balance sheet and positive aspects of the company's other non- handset businesses. They claimed that the company had bright prospects if Smartphone sales started picking up. Sales of the company's Lumia smart phones have picked up, and the stock popped up because of it. Nokia also has a strong competitive advantage over its competitors in china, after it has signed a deal with world’s largest carrier by subscribers China Mobile. Nokia is selling its Asha feature phone successfully in India and China. According to the data, they have sold 9.3 million Asha phones in India alone which give it a hope of continuous strengthening of its market status.The company also has huge opportunities in emerging markets. The company will be releasing the Windows 8 powered Lumia 620 in India in February, which should help generate and meet Smartphone demand in the growing country and boost sales for Nokia. As Windows 8 picks up, there should be more sales of Lumia worldwide as well. Nokia has also acquired Navteq,a leading provider of mapping and location data, for $8 billion in 2007. It supplies GPS systems like Garmin and Magellan, online map services. The Navteq location data is one of the best assets they have, which will differentiate it from others The Nokia strategy in alliance with Microsoft, makes sense. But only, if it is successful, it will take time and a lot of money. Nokia is beating expectations and appears to be successfully turning itself around, but it still faces many threats. Competition from iOS and Android will remain intense. Nokia has great future, especially until when its key patents are not being liquidated Nokia has a bright future if it continuously strives to improve its core business and introduce new products which is better and more efficient than its competitors.
Raymond – ‘Kamasutra’ gets a new definition
By Himani Mehrotra
Prima facie, one may get carried away with erotic and sensuous thoughts but at the end of the day it is a mere energy drink and nothing more than that. Incorporated in 1925, Raymond Group is one of India's largest branded fabric and fashion retailers. It is one of the leading, integrated producers of worsted suiting fabric in the world. The Group
owns apparel brands like Raymond, Raymond Premium Apparel, Park Avenue, Park Avenue Woman Color Plus & Parx. In addition, the Group also has business interests in readymade garments, designer wear, cosmetics & toiletries, engineering files and tools, prophylactics and air charter operations. A joint venture of the Raymond Group and Australia’s Ansell International owes a renowned brand ‘KamaSutra’. Recently, KamaSutra, has decided to extend the brand line to energy drinks segment with the launch of KamaSutra (KS) E Drink after its entry into deodorants two years ago. KS E Drink is an extension of the company's fast moving consumer goods - condom and deodorant - under the KamaSutra label. According to the brand, the energy drink market is valued currently at 200 crores and the brand aims to establish itself through its bold identity and positioning. Over the years, Raymond has epitomized the picture of the alpha male who is bold, fun, adventurous and energetic. In keeping with this positioning of the brand , we launched KamaSutra condoms 20 years ago with an innovative and interesting marketing campaign. Today, the brand has a range of men’s and women’s deodorants in exciting variants and fragrances, in addition to condoms. The Energy Drink is the newest addition to the KS product portfolio that strengthens this bold and young positioning of the brand and thus becomes a natural extension for the KS brand." Kamasutra energy drink is a powerful beverage with an exclusive combination of ingredients. The drink is a broad category of beverage that developed for times of increased cerebral and physical exertion. It increases performance, increases concentration and reaction speed, improves vigilance, improves the emotional status, stimulates metabolism and boosts strength. The drink has been created to address the taste of the adventurous and energetic urban young. It is this very positioning that inspires the product's tagline - "Get the KS Energy". One can drink it at food zone with food, it can also be mixed with other drinks, at work when the day begins to stretch out( energy for the day), in discos and parties (energy for the night), while driving to avoid tiredness and increase alertness. KSE Drink will be initially launched across metro cities over the next six months.It is available in two flavors that is X- Fruit which is a mixed fruit flavor and X- Berry which is a mixed berry flavor ,a 250ml of the latest energy drink is priced at INR95 ($1.75). Drink will compete with brands such as Red Bull, Tzinga, Horsepower and Gatorade. Raymond is eyeing 20% market share in the $37m Indian energy drinks category over the next two years. The energy drink market is valued currently at 200 crores. To promote the product there will be a lot of sampling so as to make people like the product and taste the product. Moreover, events will be organized and the products will be made available in the right kind of outlets and chains to begin with. Thus, there will be many opportunities and challenges that will be faced by the brand kamasutra to extend the brand line in energy drinks or caffeinated beverage sector.
“CAFE COFFEE DAY” THE ULTIMATE SIP
By Joydeep Das
To gain competitive advantage, Cafe coffee day, a strong competitor of Barista has come up in a big way. Barista was the market leader and just before some years ago, an unanticipated rock called Cafe Coffee Day popularly known as CCD hit the market. Other competitors such as Costa Coffee, Coffee Bean & Tea Leaf, Gloria jeans have been also triggered by Cafe Coffee Day. They tried to push and drive the customer with accessibility factor i.e. opening large number of outlets and offering products. They started with very different offerings to customers, selling breakfast meals on highways according to Indian touch (Desi tarka). Paranthas, omelettes, were common among them. Risk taker – They took risk and pitched very different market segment. Those were hospitals, corporate offices etc. This has given hard slap to Barista which made them disappear from market. Many Barista shut down but Cafe Coffee Day has increased their outlets.They played very smartly by opening their stores in colonies, societies and metro stations. This strategy is nothing but giving convenience to public. Rajiv chowk metro station witnessed the most footfalls in Delhi as it is one of the hub of all metro points. There has been an immense scope of westernization in metropolitan; life is becoming very fast and mechanical. People want everything mobile so “why not coffee”. Cafe Coffee gives fast service and also you can call just 2 minutes before and grab your coffee. Social networking other than online has also increased, whenever one is free, they prefer to sit and chat over the coffee which relaxes a person and interacts with other depicting a cozy atmosphere. Discussing about agendas, official meetings, and business deals takes a front seat too for their success. They cooperate and provide them best solution through their service. As per price is concerned, Cafe Coffee Day has been witnessed one of the reasonable coffee hub. This is one of the reasons for their public acceptance especially for college & school students. Attractive combo offers proves to increase the coffee sippers with their puffs and sandwiches.
They also provide stupendous goodies i.e. coffee mugs, notebooks, coffee makers, cookies, coffee powders which created an association with the customer and generates brand equity. Innovation They have segmented their market as per product offerings and special occasions, which will make their monotony and enjoy tailor-made dishes delivered by great chefs. This is Cafe Coffee Lounge, They only have 14 outlets in Delhi –NCR, offering different products from regular CCD. They applied test marketing in posh area of South – Delhi eg. Greater Kailash & Khan Market and earned good market response and customer acceptance. They tried to revise their menu as per customer feedbacks and suggestions.
Recently interviewed Karan, Chef at GK 1 - M block, and asked the difference between Regular CCDs and CCD Lounge, he said CCD lounge offer variety of dishes, not only usual sandwiches, puffs and brownies but shawarma, shaslik, pasta, salads, garlic breads with nice presentation to make you feel that you are special. Regular CCDs offers you ready to serve but CCD lounge offers fres and tailor – made. Regular CCDs make you feel at home, you can sit and chat, deal for your business proposals; students tend to study enjoying the WI-Fi facility. It gives a special preference to ones who are regular witnessed personally at Alaknanda. Recently they stepped into new idea called “Cafe Moments”, which is a recharge card that lets you to get recharge and enjoy 10% discount which in turn means that you can get a tax-free drink. This card is valid around the globe. This strategy has connected the frequent sippers and also maintained the loyalty among the consumers. They have also connected with strategic partners such as MTV and Britannia. Britannia had partnered with CCD recently and promoted bourbon biscuit by giving samples to sippers. Cafe Coffee Day being so powerful marketer by providing quick service, courteous behaviour and widely spread has proven itself one of the best cafe outlet.
THE ELECTRONICS EXTRAVAGANZA - CES 2013
The 2013 International CES marks the beginning of a new year along with revelations of market trends. The Consumer Electronics Show has a long history as the biggest trade show in the industry, but it’s role has certainly shifted over the years. After Microsoft announced that 2012 was going to be their last year at CES, we were left wondering what CES would look like here on out. The result was something more exciting and surprising than the presence of Microsoft or Apple could have brought. Yes there were a healthy share of ultra-HD 4K TVs and Windows 8 tablets—but the real excitement of CES this year was found on the independent hardware side of things. The expo was home to some revolutionary products that are truly pushing forward the future of consumer electronics. So here they are—the 10 best gadgets from CES 2013:
1. Panasonic 4K 20” Tablet Panasonic must have known that 4K was going to the buzzword of CES this year because this ultra-HD 20” Windows 8 tablet knocked the socks off most of the other companies’ 4K offerings. Panasonic recommends the device for architects and designers.
2. Tobii Rex Windows 8
Eye-tracking technology has been around for quite some time, but the Tobii Rex sensor does it in a way that actually seems practical. As a simple Windows 8 tech demo, being able to move up and down an Internet Explorer tab or or open an application with no more than a look and the press of a key is pretty incredible. Tobii’s plan to get these onto ultrabooks and tablets at a relatively low cost is what is truly exciting though.
3. Edge Razer Gaming Tablet The Edge Razer Gaming Tablet is determined to make a single 10.1" Windows 8 tablet your definitive gaming experience, regardless of whether you’re on the go, lounging on the couch, or sitting at a desk. With its detachable accessories and docking stations, the Edge Razer is an all-in-one computer. 4. Sony Xperia Z With the Xperia Z, Sony has reintroduced itself as a serious contender in the Android OEM market. In a show otherwise absent of smartphone announcements, Sony’s new flagship device really stands out as the next great Android phone. Running stock Android Jelly Bean, utilizing a beautiful 1080p display and boasting a surprisingly sleek industrial body, the fact that Xperia Z is waterproof is only icing on the cake.
5. Samsung’s 4K “Easel” TV When Samsung talked about revealing a TV with an “unprecedented shape” and “timeless design”, a TV hung on an easel isn’t exactly what we had in mind. Even still, the design of this 85” 4K TV is truly awe-inspiring. We can’t imagine putting this thing in our living rooms, but the “floating” design and incredible pixel density is a breathe of fresh air in the tired world of generic TV design. 6. Curved OLED TVs by LG and Samsung OLED TVs were the toast of CES 2013, but LG and Samsung one upped the competition by showcasing curved televisions. Measuring 55-inch diagonally, such TVs make sure that the distance between the viewers and screen remains constant from all angles. The 110-inch Samsung 4K TV dwarfs the 85-inch UN85S9 also presented there.
7. Project Shield
Gaming was a surprisingly big theme this year at CES and no more shocking an announcement was there than NVIDIA’s Project Shield. Powered by their new Tegra 4 mobile processing chip, Project Shield is a peculiar, though exciting portable gaming device—especially coming from NVIDIA. It’s essentially an Xbox controller with a clashell 5” 720p screen attached to it. The device runs stock Android Jelly Bean, but the most exciting thing about it is the ability to stream games from your computer over WiFi. In other words, if having access to Steam on a portable device sounds good to you, keep an eye out for Project Shield.
8. Lenovo ThinkPad Helix Finally, a Windows 8 transforming tablet/laptop hybrid that gets it right. This is a serious ultrabook with a Core i7 processor and up to a 256GB SSD that just happens to work eloquently as a detachable tablet as well. The 11” 1080p display is no slacker and neither is the 256GB SSD—but the real magic is how the Helix transforms from powerhouse ultrabook to portable tablet.
9. Samsung shows off flexible display phones at CES keynote
Samsung showcased its new display technology named Youm at CES 2013, which will make the screen of devices like smartphones and tablets unbreakable and flexible. Youm displays are made using OLED and will be impervious to cracks even when dropped from a height. A technology of the future, Youm was shown on a screen measuring 5-inch (diagonally), having close to 720p resolution and 16:9 aspect ratio. The prototype had a wraparound screen that covered the right side of the device and could be used to view stock ticker and such information, thus providing more screen space to users. 10. Lenovo's Horizon 27 takes coffee table computing to a new level Lenovo has different ambitions for its new Horizon Table PC than Sony has for its desktoptablet hybrid. the Horizon is a Windows 8-based PC. On top of Microsoft's new operating system, Lenovo has also added its own multiuser interface called Aura. Aura is integrated deeply into the operation of the Horizon. Drop the screen down to its table-top-style flat mode, and Aura pops up automatically, presenting you with a relatively intuitive software control wheel from which you can launch various touch-supported applications.
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CHANAKYA NITI: CASE STUDY – HARLEY-DAVIDSON
Introduction August 25, 2010, was a red-letter day for every die-hard Harley-Davidson fan who dreams of turning a corner and coming face-to-face with not one but a whole set of iconic motorcycles. Harley-Davidson unveiled its first showroom in the city of Mumbai in Bandra (West). Christened Seven Islands Harley-Davidson, the dealership is led by motoring enthusiast Arjun Bafna. Arjun Bafna is a gen-next entrepreneur with varied interests. A keen motor enthusiast, Arjun’s definition of unwinding after a long day is riding his Ultra Classic Electra Glide. Having a passion for automobiles, he indulged in Bikes and Cars and this passion gave him the drive to head the Harley Davidson Franchise in Mumbai. About Harley Davidson Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression. The company sells heavyweight (over 750 cc) motorcycles designed for cruising on the highway. Harley-Davidson motorcycles (popularly known as "Harleys") have a distinctive design and exhaust note. They are especially noted for the tradition of heavy customization that gave rise to the chopper-style of motorcycle. About Seven Islands Harley-Davidson Seven islands Harley-Davidson located in Bandra (West) is the sole dealer in the Mumbai region catering to Mumbai, Navi Mumbai and adjoining areas. Over the years Seven Islands has gained a cult following among bike enthusiasts and die-hard Harley fans with the Holy Grail of the Biking World being the centre of attention. Marketing Strategy Harley-Davidson is a well known brand. It is not a brand that goes for traditional advertising. They rely more on word of mouth publicity. To get the customers in, Harley participates in motorcycle shows, rallies and other high profile events. Seven Islands Harley Davidson has done a remarkable amount of public interaction by organizing the “Boot Camp”, the “Harley Rocker’s Ride”, the “Harley Nights” and the “Founders’ Ride” in India. This already has had an incredible amount of people registering to be informed about events and rides. The want is to reach out to as many and as quickly as possible. Another important marketing strategy that Harley uses is H.O.G. (Harley Owners Group). Established in 1983, H.O.G. ® is the largest factory sponsored motorcycle club in the world. Introducing the HARLEY-DAVIDSON Gift Card Seven Islands, in its ongoing commitment to provide its clients with outstanding convenience and service is considering taking another step; the company is looking at launching an exclusive Harley Davidson Gift Card® program. The gift cards, which can be purchased for a specific amount up to `20000, can be spent towards a variety of products at Seven Islands Harley-Davidson. The Harley-Davidson™ Gift Card will be offered through dealer locations and other channels. The Harley-Davidson™ Gift card would be available for use on various products and services as authorized by the parent organization. The aim is at retaining the best customers at Seven Islands.
FIRST CUT - PARLE G
Going back in time - Brand History Born way back in 1939, Parle-G is a good case study in volume players as it has been able to play on the trust, relevance and affordability plank well, thus blunting every hyper active competition. Brand Parle-G dominates the volume-dominated biscuit market. Even at a time when multinationals are beefing up their operations and trying to change the dynamics of the market, Parle-G’s numero uno position is unchallenged. Its competitors have roped in superstars like King Khan and Sachin Tendulkar, but Parle-G has only gone from strength to strength. Present Brand Positioning: The Recent Parle-G Ad is an great example of taking an earlier concept forward and strengthening the positioning. The Parle-G campaign took off with G Means Genius. The new Ad focuses on childhood and curiosity. It depicts children’s ability to find solutions to problems if they’re given free rein— like a boy flying a plastic kite in a downpour, or a girl drawing a scuba-diver around a fire extinguisher on the wall. The track for the commercial is a winner : “Roko mat toko mat (Don’t stop, don’t interrupt)”, especially when the singer says, “Ande ke andar hi kaise udenge yaar (How will we take flight if cocooned)?”
A great Ad – smart, wonderful, meaningful, engaging and very very brand-relevant. Parle always has been an innovative company. It is behind the biggest brands and creates new products regularly like KissMe, Meldoy, Poppins, Monaca, Hide And Seek, Krackjack, Mango Bite etc. Titled 'Kal Ka Genius', the campaign has been created by Ogilvy & Mather. It is targeted at children of 5 to 15 years and their mothers. The creative idea of the campaign is 'There is no bigger school than childhood; and there is no better teacher than curiosity'.
Parle-G believes all kids are exceptional and creative but when they grow up, they often lose their creative ability as they journey towards conformity. It wants parents to realise that their kids could develop their potential for genius if they let them be, if they nurtured their natural curiosity, encouraged the desire to try new things, experiment, learn from their failures and mistakes. They should realised that kids can learn everywhere and from everything and that school is beyond just books and classrooms, the agency said. The campaign was launched on the digital medium in two phases, Teaser and Launch Phase. In the first phase there was a teaser which was released across YouTube, Facebook and Twitter. This was followed by releasing the TVC online. The idea behind the new communication is to make the communication more progressive and not regressive. The core philosophy behind this campaign is to let kids explore and learn their own rather them stopping them. It shows children exploring possibilities in a way that makes their little world and imagination better. The ad is shot well and un-commercial like. After all, when a biscuit brand that's close to completing 75 years finds itself in a near-monopoly population at a time when the demographics are skewed hopelessly towards the youth and three- fourths of the population is under 35 and you have to wonder: Will today's youth still be chomping on Parle-Gs a couple of decades down the road? Please visit at https://www.facebook.com/pages/Flaunte/158791384268262# to view ads. If Parle has to make a noise in the market, it is also because of the presence of two formidable rivals in the glucose segment: Britannia and ITC. As of June 2012, Nielsen data indicates the former had a share of 8.7% and ITC 8.3%. Parle still rules the roost with a 79.4% share, but with both the competitors armed with deep pockets, the battle is going to rage on for some time to come. According to industry estimates, the biscuit market was worth Rs 15,000 crore till September 2012, with glucose accounting for 30% of this segment. Every category needs some innovations on a periodic basis, so does glucose. Parle-G launched Parle-G Gold in May 2012, a premium glucose biscuit which, according to the company, is heavier than Parle-G and has a richer formulation. Britannia Tiger and ITC's Sunfeast Glucose are the two branded competitors against Parle-G, apart from a number of unbranded local players that operate regionally. Consumers today have acquired a taste for 'variety', which is seen by the success of multiple biscuit variants across price points. As consumer preferences evolve, the market for biscuits as a whole will increase but the relative share of different categories might change . Glucose has a healthy imagery in consumers' minds and today the health platform has gained more voice than ever. The new ad campaign will immediately draw a larger number of customers into the space as well as refresh the connect with the existing customers.
BIZ QUIZ
Q1. Which company recently unveiled this coffee table size device that can be used by four people at once?
Q2. 'A' was fired from his own company. The name of A’s company was coined by a young child and was the translation of A’s name in Latin. Today, it is one of the biggest companies in the world. Identify the company A. Q3. This US based foods chain opened its first outlet in India in mid-2012. It was assumed that it was a strategy to enter the country before its rival from their native country which opened it store towards the end of 2012 in Mumbai. Identify the company.
Q4. Identify this person
Q5. Identify this Media Baron
Q6. Which Apple CEO was not born in the US?
Q7. Identify this Indian Face behind Google
Q8. Park Jae-Sang has become a rage. What is the source or root of the word that made him this popular. Why did he use that word? Q9. How many FDI proposals were approved by Government of India worth Rs.1,310.60 crore recently? Q10. Which company launched '.Beat' range of hi-tech watches in India?
For answers, Pleases visit at https://www.facebook.com/pages/Flaunte/158791384268262#
VOX POPULI
Will 'Phablets' gain market share from normal sized smartphones in 2013? To submit your views, kindly refer to the link: https://www.facebook.com/pages/Flaunte/158791384268262#
MYTHOLOGICAL MANAGEMENT LESSONS
How to react to real time events and outcomes? In life we go through a variety of situations as time passes by. At times, we have a very happy moment because we achieved what we aimed for. For example, we got a pay rise or a promotion or a student got admission into his/her college of choice or a job aspirant got a job that he/she was looking for. We rejoice too much and celebrate it in such a magnitude that it is a sure recipe for disaster when some unpleasant moment unfolds later. Others get too egoistic and alienate themselves from others. There are times when the going has not been good. We invested in the stock market and lost money because the market price of the shares that we bought went down. An entrepreneur might continue to invest more money into a venture still not seeing the light at the end of the day. Alternatively, we lost the job, got a boss who harasses and so on. A student went with some method of preparation but the examination paper was of different resulting in poor performance. Many are unable to face this and slip into mental depression and create problems for themselves and others. Some others simply fall by the wayside not knowing how to react. Such events do unfold in everybody’s life every now and then. While this is common what is not common is our response to these emerging situations in life. Generally, if we observe a number of such situations we will find some broad patterns in our response to these situations. The table below captures some of these.
It is a happy situation
It is not a very happy situation
We are on cloud nine. We want to celebrate We are in a state of depression and it in as grand a manner as possible. disappointment. We want to avoid thinking about it or talking about it. We take the full credit for the outcome. We We blame everyone and everything around realize how much potential we have and us for the failure. We even blame God for how well we are able to execute the task to being unfair to us. perfection that the result was indeed what it was. We feel we are next to none in this world. We feel we are absolutely worthless and the No force on earth can stop our progress and most unlucky person in the world. success. Often times we do not feel the need for We begin to feel the need for others around others and the feeling of “I” is at its peak. us and how it would have been if they have Supported and shared the burden. The “I” is cut to size and is almost non-existent. Relationship to developing leadership traits Such situations continue to unfold again and again many times in the future. Therefore, it is important to know the long term implications of this behavior. If we analyze the behavioural response to the good and not-so good situations as listed above, it becomes clear that we
seem to be merely reacting to the stimuli. This almost resembles an animal behavior. Rejoicing when an apparently good situation unfolds and slipping into a state of mental depression and stress when a “not a happy� situation arises does not help us in any way to develop resilience to face such situations in the future. Such people can never develop inner strength and character required to take responsible roles in the family, society and work place. They will find it difficult to develop leadership traits which are needed as they grow. They do not acquire any wisdom in life. They are continuously battered between the two extremes like a boat caught in a cyclone in the middle of the ocean. Is there something more that we need to do? How exactly should we react? We shall see what advice Lord Krishna offers to us on this aspect. Emotional detachment leads to steady mind & wisdom The root cause of the responses to alternative situations mentioned above is emotional attachment to the issue on hand. When one gets too emotional, the first thing that happens is that the power of discrimination is lost. Buddhi is the faculty endowed with the power of discrimination. However, in an emotional state, the mind gains control over the Buddhi and switches it off. Once this happens, we will react to the situation in a manner that we may regret later (when the mind is calm and the control is restored back to Buddhi). Therefore, Lord Krishna first advises that it is important to develop a state of mind that is always alert and does not indulge in too much attachment to unfolding situations. Lord Krishna further says that if we develop this capability then the mind will not slip into aversion when the unfolding situation is not good. Also, when the unfolding situation is good it does not over rejoice. In this process, what an individual will also achieve is that his/her mind is steady and he/she attains wisdom. yah sarvtra anabhisneha tat-tat praapya shubhaashubham na-abhinandati na dveshti tasya prajna pratishtitaa!!
A pleasant outcome of this journey is that emotional detachment leads us to greater and intense physical attachment to activities and situations around us. We will begin to discover the joy of work as opposed to the drudgery and boredom of work that we currently experience. A closer scrutiny of the life and works of great leaders brings out this aspect clearly. Let us benefit from this advice of Lord Krishna and enjoy a self-transformative experience within ourselves. - By Prof. B Mahadevan, Indian Institute of Management Bangalore
TEAM: FLAUNTE’
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Prince Juneja
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