MarkMantra Feb edition 2015 by IIFT MarkMantra

MarkMantra Feb 2015

From the editors’ desks:

arkMantra welcomes you to a happy and a joy-

also focuses on some of the rising trends in today’s world

ous new year with its February edition, cover-

such as Minimalism, Cause Marketing, Luxury Marketing and

ing the hottest and the most exciting events in

Health Marketing. Marketing campaigns have become cen-

the ever changing world of marketing. The year

tral to the success of movies being released at the box office.

gone by witnessed the kind of influence that marketing cam-

As marketers, it thus becomes extremely importance to un-

paigns have on consumers and we have tried to analyze the

derstand the execution of the strategies that have been de-

various aspects involved in positioning Brand “Modi”.E-

signed keeping in mind the increase in the number of such

commerce was the buzzword last year and industry re-

cinemas. Some brands make us fall in love and define a

mained in the news at all times. We have tried to bring out

whole new way of life for us, etching their names in our

how marketing remained at the core of all this with the big

mind. We take a look into some of these legendary brands

players like Flipkart, Snapdeal and Amazon slugging it out for

that have defied all the obstacles have risen from the dead to

the pole position through innovative marketing campaigns

achieve immortality. With our trivia section we have tried to

and strategies. The old age adage “A Customer is always

intrigue you with some lesser known facts of marketing. For

right” is getting stronger with time and we have tried to ex-

our existing readers we hope you enjoy this edition of our

plore this theme with special piece of writing where we take

magazine as much as you have in the past and for our first

you through the intricacies of customer care .This edition

timers we hope that MarkMantra becomes your Lovemark.

Senior team:

Samarth Vikram Singh

Arjun Singh Mehta

Prateek Shrivastava

Saurabh Vyas

Ipsita Gochhayat

Shatabdi Banerjee

Supratik Chakroborty

Junior team:

Harshit Vyas

MarkMantra Feb 2015

Table of Contents #Being NaMo

Good Marketing Or Good Content?

Sell Healthy, Stay Healthy

Death Is For The Mortals

Minimalistic Advertising

Customer relationship Management

Cause Marketing

E-Commerce Glut

Challenges In Indian Luxury Market

Fun Zone

MarkMantra Feb 2015

arendra Modi has been in news for all possible reasons. Modi has enjoyed his equal share of notoriety as well as adulation. Some-

thing which cannot be ignored is his growing popularity. Ever since he has delivered the most unprecedented poll results he has become the poster boy of Indian advertising. This has made him more than just a Prime Minister for people who take their Marketing classes seriously.

PRIME MINISTER

Modi’s tactics, campaigns and strategies are being

included in B School syllabus. Top B Schools are revising their marketing and strategy pedagogy to include lessons on NaMo. Several case studies on

PRIME MARKETER

BJP's marketing strategies, usage of technology,

single point authority and media management, Brand Image enhancement, Product Positioning and understanding target audience as well as product development are being developed. Some of these concepts were earlier taught using Barack

“Successfully”

Be a constant innovator

Obama but now are being re-written to suit Indian

As a marketer, innovations have to be pulled out

audience.

continuously. Innovations in pricing will attract

Let’s try to understand some of the marketing fun-

das 4

which

Narendra

Modi

implemented

consumers. The customers remember the brand for what it did for them during the tough times and

MarkMantra Feb 2015 remain loyal to the brand in the long-run. BJP dur-

politics also. Narendra Modi was undoubtedly the

ing few of their rallies charges a minimal fee to lis-

most tech savvy CM and now as an PM, he uses

ten to Modi’s address. The funds thus collected

this channel for variety of purposes. He is the first

were donated to Disaster ravaged states. This is

Indian politician to have more than 2mn followers

where Cause marketing strategy proved to be deci-

on micro-blogging site Twitter. He has at over

sive.

3.5mn likes on his Facebook page. He uses

Be an Expert of Digital Content and Embrace Technology

Google+ Hangout, Pinterest, Tumblr, and YouTube etc. to connect to his audience. His dedicated social media team takes care of the content which is

It is extremely stupid to wait for your audience to

to be posted in order to have a wider reach of his

reach to you. If your audience does not read news-

messages.

Understand the Target Audience “Ab Ki Baar Modi Sarkaar, Achche din anewale hain” - these 2014 Narendra Modi slogans had caught the fancy of millions. They were engineered after understanding voter feedback to increase the top of the mind recall. According to a survey conducted by the party, Modi’s recall value was almost 22 per cent more than the BJP. The party had a new market to tap into and several stakeholders papers, you do not ask them to change their be-

needed to be communicated with. The campaign

haviour. You do not wait for them to start caring

was all designed after proper marketing research

about you and get interested in you. Instead you

which then became viral. The purpose of such ta-

get outside your comfort zone and reach them in

glines was to find resonance with everyone, includ-

theirs.

ing the first time voters.

It is necessary to choose the medium of marketing

Subtle Branding

wisely. With increasing internet penetration, multiplying sales of smartphones with simultaneous fall in their prices, digital medium for campaigning is turning out to be the cheapest of all. The significance of Digital media is touted to be the next big thing for any marketing department of a company.

No wonder this has now entered the domain of

The marketing heads in the party aptly used the humble background of Narendra Modi of that of a tea seller. This point which other parties often joked about was completely turned around to

MarkMantra Feb 2015 reinforce the image of a person who rose through

such move was executed by him was ‘Chai pe

the ranks by his determination and sheer dedica-

Charcha’ campaign which took the advantage of on

tion. A common man finds such a person more ac-

ground kiosks to gather people in the offline world,

ceptable. This differentiated Narendra Modi from

and connect them to party leaders and people

his opponents in a manner similar to what brand-

from other towns. The Brand repositioning lesson

ing does to a product.

is not limited to India. In all his foreign trips he

Single Point Authority In our Distribution chapters, one topic that we fail

to forget is the hub and spoke model. The design

tries to reposition India to bring in investment.

4P Let’s see the applicability of 4Ps of marketing in

of such a model is highly efficient for a variety of reasons. By centralizing control, the company can afford smaller staffs which concentrates on management from a central location. Narendra Modi keeps himself involved in all the committees within the government. Be it Make in India or interministerial decisions, the PMO is the single point contact for various schemes launched by Narendra Modi. This helps him to hasten the process of decision making which in turn helps him to come true on his promise of efficient governance.

Brand Repositioning Repositioning is done by companies for keeping

Narendra Modi’s journey thus far. In general elec-

their product relevant in the times of changing cus-

tions, the products are various leaders from differ-

tomer needs. All companies continuously try to

ent parties. BJP had projected Narendra Modi as

associate themselves with something people are

its core product. The party in itself was just a gift

already familiar with. Coca-Cola did it with the

wrapping and not the product. This was intelligent

word ‘Thanda‘, Maruti tried to associate itself with

since it is difficult to define a party as a product

the catch phrase ‘Kitna deti hai‘ and Oreo associ-

because party has so many members however it is

ated itself with the ‘dunk biscuit before eating’

fairly easy to characterize an individual. The previ-

ritual.

ous government couldn’t find a clear core product

Similarly, the parties need to considerably alter

their strategies to make them contemporary. One 6

and thus confused the voters. Let’s talk about another ‘P’, Place. Modi had addressed 437 rallies;

MarkMantra Feb 2015 and many more through digital medium. Any CSO

Prime Minister is the very proof of it. He may not

would have been proud if the number had been

have undergone a formal coaching in the concepts

the count of retail outlets of a distribution channel.

of marketing but still he is marketer in his domain

The point is, his campaign tour covered the entire

of expertise. In MBA parlance, he is a marketer

length and breadth of our country. Promotion was

who tries to design his services based on the prob-

sharp, to the point and built around the issues

lems faced by his customers. He along with being

which troubled the voters. Channels for promo-

the Prime Minister of our country is an ideal Prime

tions were designed as per the target audience ex

Marketer. So the next time when he is in news,

TV shows for house wives while FB for youth. The

look out for subtle Marketing or Brand manage-

last ‘P’ Price in general is what the customer is

ment lessons. It might help you for your case stud-

ready to pay for the product or the service. In the

ies, assignments or tutorials.

case of elections, it was the value of Modi's promise. It was what he was going to deliver.

Arjun Singh Mehta

From all the above illustrations, we can infer that

MBA(IB) 2013-15

lessons we study in Marketing are all applicable

Indian Institute

even in Politics and the one who uses them effi-

Of Foreign Trade

ciently surely ensures more success. Our own

Achievers at IIFT

IIFT Kolkata wins the TCS “Bank Of The Future” Ideation Challenge K.B Shriharsha being felicitated for the same

MarkMantra Feb 2015

“Old Indian movies are like seasoned wine…the older they get the better they seem- Not because of their brilliance rather because of the shitty movies that are being made today”

one are the days when a movie

activity, hard work and planning as it does in mak-

would stay running in a single

ing a movie in the first place. Today the hype and

screen theatre for months and

hoopla that surrounds a movie starts right from

may be for years even. We no

the storyboard and continues till the fag end of he

longer have a ‘DDLJ’ or a ‘Sholay’ raking in moolah in slow burn. The human needs have changed and so have the human fantasies.

From the

1960s high-on-drama stories to larger-than-life

setups today - Bollywood has changed along with it. There were days when a movie release was a less talked about activity attracting less stars and less media. It included a music release prior to the release of the movie which was eventually followed by

full

fanfare

premier.

That’s

it!

But now the activities prior to the movie release and its promotion in this period involve as much 8

screening, editing and recording processes. Well! As marketers we must find interest in the beauty

with which it is orchestrated with a heady mar-

MarkMantra Feb 2015 keting mix. Today’s heavy ATL and BTL marketing

grosser till date in Indian cinema, saw Amir Khan

techniques are usurping silent Friday releases of

go on a promotion spree. 3 Idiots employed vari-

yore, because the shelf life of the films or the

ous marketing strategies: from online release of

time for which they remain screened in theatres is

the film, association with insurance products to

getting smaller and smaller every season. With

Sachin Tendulkar endorsing the film. Another very

the number of films being made each year rising,

innovative marketing tactic used by the 3 Idiots

this is ought to happen. Today it’s the very first

team involved pasting stickers reading “Capacity: 3

holiday or the first weekend that decides the fate

Idiots” on the back of 10,000 auto rickshaws. This

of a film. In fact, certain movie makers, producers

was considered well aware of the fact that the au-

and actors strategically plan to release their mov-

to rickshaws, being one of the most important

ies on important festive dates to attract more au-

commuting modes, would provide a lot of visibility

dience. The benchmarks like Silver Jubilee, Golden

to the movie.

Jubilee etc. have lost their sheen and have been replaced with the ‘100 crore club’ or the even bigger the ‘200 crore club’.

All in all, with the lifespan of the movies at the Cineplex getting shorter each season the producers of the movie now devise ingenious promotion-

A lot of film marketers have engaged in a lot of out

al strategies to breakeven at a faster pace. This

-of-the-box marketing ideas. A point that beckons

present and changing face of Indian cinema brings

a mention here is that the pre-release promotion

a very important question to the fore. Has Indian

budget of movies now account for close to 30 to

cinema lost its artistic value and the only motive

40 percent of the total budget allocated for the

behind cinema is to pander to the audience desires

movie. This, in itself, is a testimony to the fact that

and garner huge profits.? Is marketing a movie to-

film-makers today consider the marketing of a

day more important than making an inexplicable

movie almost as important as the art of movie making itself. Superstars from names as big as Shah Rukh Khan to as old as Amitabh Bachchan to

as hot and ravishing as Deepika Padukone - we have all the stars coming up and promoting their films on the small screen, a few weeks before the release of their movie. This is a trend today and no superstar has remained untouched, not even the unusual and eclectic Amir Khan. Though he has not been on the reality shows promoting his films, he

masterpiece?

has followed his own ideas for doing the same

While there are no clear regions of black and white

thing differently. For example, 3 Idiots, the highest

that define answers to the above questions, there 9

MarkMantra Feb 2015 are certain grey regions that throw a good deal of

dearth of talent in the world of art. There are

light on them. One of the biggest myths in Indian

names like Satyajit Ray, Dr. K. Vishwanath and Ma-

cinema is that there are actors who can turn

ni Ratnam among others who have been known

around a movie. In Bollywood, this is very wrongly

for achieving a great deal at the box office while

stated that stars can make a movie hit. We have

balancing elements of both popular and art cinema

the most popular of the actors facing failure and

at the same time. But it’s disheartening to learn

giving flops. In the end the only fool proof way of

that recent movie releases like ‘Ship of Theseus’,

making sure that a movie is accepted by the audi-

‘Sulemani Keeda’ etc. offered a different story on

ence is good story telling. A good story properly

the

told will always hold the public’s interest.

commercialized set up and marketing practices,

platter

but

because

their

not-so-

they almost went unnoticed. Films like these are testimony to the fact that good and meaningful cinema still exists in India. It is the short sightedness of the commercial players in Bollywood that has brought us to a stage where the script and the storyline of the movie have taken the backseat and

Another popular misbelief is that good music and heavy pre-prelease promotion by the actors will

give a brilliant first 2-3 weeks to the movie. Industry today is replete with examples of movies like Heropanti, Entertainment etc. (examples from last

presentation and marketing have come to the fore.

year) which in spite of heavy marketing did not do

In fact, the audience and the movie makers have

much at the box office.

come into such a symbiotic relationship where

While good cinema and classic work of celluloid is still present today, it is becoming rare and something that is categorized as parallel cinema rather than commercial cinema. India has never seen a 10

they seem to have signed an unsaid agreement of accepting whatever is offered to them. Unless there come a few film makers who commercialize

good meaningful cinema (movies of the likes of

MarkMantra Feb 2015 Swades, Rang De Basanti, Gangajal) and revive the

this balance is maintained, there can be an indus-

tastes of the Indian diaspora, this relationship

try thatâ&#x20AC;&#x2122;s modern and technology driven and yet

would seem to continue.

maintains its sanctity by offering some of the best works of

The point to be driven home is

celluloid.

this â&#x20AC;&#x201C; No one can deny that in the modern era of filmmaking,

If all of this happens only then

both aspects of a good story

can we dream of taking Bolly-

and a working marketing plan

wood global and making it real-

are equally important. Pres-

ize its true potential.

ence or absence of one of them can only bring partial success to a movie. The idea is to strike the right balance between both and give the audience a movie

Harshit Vyas

that not only has a good story worth remembering

MBA(IB) 2014-16

but also has so good pre-release promotion plan that they are left with no choice but to succumb to the temptation of watching it, at least once. Only if

Indian Institute Of Foreign Trade

Achievers at IIFT

Team Red Devils From IIFT Kolkata wins the Nokia-Wipro Brain Storm Control your Environment Challenge 2014

MarkMantra Feb 2015

n late ‘90s, there emerged from a new con- profile launch didn’t help either. Too adamant to cern that instantly unleashed across the cut prices and too blind to do their research, the world restlessness like never before: the cereals giant kept churning out new variants, all of concern for health! It touched India a little

late and how! There were brands that introduced entire categories and changed the food habits of millions of Indians. And then there were others that

introduced variants or changed their positioning to cash in on the trend. There were some who rose to prominence and relevance thanks to the fervor.

The Path-Makers The story of health food dare not start without the mention of the company that experimented, researched, failed and excelled in this category. Kel-

which sank without a trace. The ads that they

logg’s made a brazen entry into the Indian market

launched tried to tell that the Indian breakfast did-

in 1994. It was a time when breakfast for an Indian

n’t have the necessary nutrients, which backfired

meant hot parathas or steaming idlis. This meant

big time and the audience promptly shirked off

that Kellogg’s was a brand new product and had

the idea of switching to cornflakes. Could they get

no competitors; it would have been the market-

more wrong?

er’s paradise but for the fact that it also meant that the company had to promote not just the cereals but also the very idea of having them for breakfast. At first launch, novelty purchases made sales soar but this was not here to stay. The high 12

However Kellogg’s soon made amends. It introduced smaller Rs 10 packs of each variant and started offering free gifts for children with most

of its packs. Promotional activities like Kellogg’s

MarkMantra Feb 2015 Breakfast Week attempted to sensitize Indian

a plate of salad and a pizza slice and those of the

population to the importance of a healthy break-

Health Starter Kit?)

fast. Positioning changed from it being just

Both the brands invested much on research and

healthy, to a “healthy, tasty and easy-to-

trial and error until they finally got it right. They

prepare” alternative. Over time, it offered “Iron

managed to influence their target population and

Shakti” and “Special K Diet for women”. Today Kellogg’s is synonymous to breakfast. Another giant to spot the jackpot was Britannia, which sensed the upcoming market for health con-

scious consumers in India. In the entire $3 billion worth Indian biscuit industry (which, by the way, ranks the third largest in the world!) it was the first to attempt a combination of health and taste in the biscuits segment. It experimented with a number of concepts under the brand of NutriChoice

change their inherent habits through intensive ad-

and restructured its product portfolio by 2005. Its

vertising and effective campaigns.

positioning of biscuits as healthy and tasty snack

The Change-Mongers

option between meals is now being adopted by The brands that later launched their products in the footsteps of the path-breakers had the advantage of prior knowledge of what stuck and what sank. They were spared the experimentation and could safely go the proven way. This is the reason most of these brands had similar positioning i.e. the “healthy and tasty” bit.

After Kellogg’s the only high-profile launch was that of Quaker, which brought ashore to India its world of oats in 2006. Owing to its late entry into many more brands but Britannia is keeping clear of

the market Quaker has had lesser role to play in

the competition through new variants like Multi-

reshaping food habits but it has been successful in

grain and oats and ingenious marketing strategies

introducing oats to Indians’ daily life as a “heart-

both on TV and in print (remember the ads that

smart” and “fibre-rich” food. It has similar posi-

claim Nutrichoice Digestive to be halfway between

tioning to what Kellogg’s later adopted- that of nutritious, tasty and easy-to-cook breakfast option.

MarkMantra Feb 2015 To localize its products Quaker came out with ma-

to carve out a place for itself in the otherwise

sala and cardamom flavours and introducing low

crowded health food category. So it chose a new

priced packs. But Quaker is facing stiff competition

positioning. It claimed to contain more than 23%

in this category with every other brand (Kellogg’s, Marico, Nestle) having its eyes set on a share of the 4000 tonne oats market. Meanwhile, in early 2000s, Nestle was trying to steer itself towards a “health and wellness” brand and in line with this goal, Maggi launched its first “healthy” product, the Atta noodles that positioned itself as whole wheat noodles with real vegetables. After this, it also launched Multigrain and Oats variants. The recent ad from Maggi has actress and opinion leader Madhuri Dixit promoting the noodles thus increasing its credibility and appeal.

whole wheat and the ads dramatically drove this home with Bipasha Basu in the lead. Parle confronted the idea of digestive biscuits with an ad that said that they contained more fat and hence were “tastier”. Parle Marie would have proved a

Similarly, burgeoning incidents of heart diseases

viable contender in the health race had it picked

and hypertension has prompted innovators to

a comparble duo to match McVitie’s Bips!

offer low-cholesterol oil as the solution. Saffola introduced a range of low-cholesterol soyabean oil in ‘gold’, ‘active’ and ‘tasty’ variants. It launched a forum that goes by the name, Saffola Life and holds recipes and tips for a healthy heart; it launched the “Protect her Heart” campaign this World Heart Day. It is a brand that has kept active on social media through its campaigns for Masala Oats (“The Other Side”) that it positions as the “tasty oats”. Another launch that comes to mind is that of Mc Vitie’s, an exceedingly popular brand from United Biscuits, which launched its Digestive Biscuits in 2010 and was faced with competition from Britannia’s NutriChoice. The first challenge was

Each of these brands (other than Quaker) launched their health product range for the wont of a significant extension to their product line or because they spied opportunity in this category. Maggi came out with its nutritional noodles at a point where it was losing its sheen to the likes of Top

Ramen. Saffola focused on heart care to build its

MarkMantra Feb 2015 brand and its campaigns tried to impress upon

happened at a time when the Indian household

people the need to live healthy. All these brands

was attaining consciousness towards health and

played their roles in moulding the emerging health

the dangers of diabetes and the young Indian

food industry. They created demand through

was fighting obesity. Thus flung open the doors

awareness and then projected their products as

for all things sugar free: desserts, dishes, ice

the only solution.

creams and what not. To top the entire effort,

The Beneficiaries

celebrity chef Sanjeev Kapoor was roped in to promote the brand.The wave of healthy eating is

Apart from the food giants that were spinning out one product after other branded “healthy”, there were a few that successfully came out of the oblivion thanks to the trend and some categories that emerged because of it. Sugar Free was launched as early as 1988 as a

not just limited to the FMCG. It is spreading to

services as well. Hospitals are riding on it and insurance is selling like hot cakes. Health insurance started selling in India once people were aware of lifestyle diseases like diabetes and heart ailments. The ads that insurance agencies came up with also played a huge role in creating awareness. The various food brands have over the years tied up with various health agencies to further their popularity. Quaker tied up with Apollo Hospitals to offer free health check ups for its customers and also launched 360 degree awareness campaigns. Kellogg’s at its early stage was associating itself with Indian Dietetic Association to launch pan-India awareness pro-

drug by its Ethical Drug Division but could only market through below the line promotions due to restrictions on it being sold as OTC. Post ’93

grammes related to iron deficiency.

Conclusion

the drug could be sold OTC but it wasn’t until six

Over the years all the players in the health food

years later that genuine effort was made to

market have managed to succeed not just by the

make it popular. The color of the pack was

virtue of “health” alone. The inseparable ingredi-

changed from a depressing blue to vibrant yel-

ent in the success of all the stalwarts has always

low and it was modeled as an hourglass to reflect

been the “taste”. The oats, the cornflakes, the

the lower calories that it offered, thus position-

soup, the juice, the noodles and even the oil

ing the sweetener not as a drug but as a fitness

have to be tasty. Guess the way to success in In-

alternative. It was now available in every random

dia is through its taste buds!

grocery store and not just at the chemist’s. This 15

MarkMantra Feb 2015 Marketers now use innovative ways of marketing

their products. They target both children and the mothers when it comes to children’s drinks and food. Health drinks like Complan and Horlicks give away freebies like tattoos and Gi-Joe toys. To appeal to the price-sensitive Indian they come up with small packs. Recently Knor came up with sachets of soup promoted as the solution for “ChotiChotiBhook”.

The health food market is at a shooting stage and is currently recording a CAGR of around 20%. This sector will expectedly swell to a Rs 22,500 crore wonder by 2015.So people! The frenzy over healthy eating is here to stay and this segment will grow further in years to come. So grab a yogurt and join the new health-conscious India!

Ipsita Gochhayat MBA(IB) 2014-16 Indian Institute

Of Foreign Trade

Achievers at IIFT

Anmol Garg From IIFT Kolkata grabs the pole position at MDI Phalanx Last Man Standing

MarkMantra Feb 2015

egends and Holy Scriptures have always favoured the Davids and not the Goliaths. The most admired folklores are about the protagonist doing the

impossible. But what happens to the mighty when they falter??How do they resurrect themselves from death??How do they regain their lost pride?? Time and Again, mighty brands have risen from

being “dogs” to “cash cows”, thus altering the product life-cycle curve. They have wronged the legends and have risen to become the Rocky Balboas of their sectors .Let us try to analyse how these Rocky Balboas rose from the ashes.

Old Spice:

From being Old and Weary to Old

BUT LEGENDARY BRANDS ARE IMMORTAL..

and Sexy Launched in 1938 by Shulton Co, Old spice was one

as the concept of masculinity changed and by early

“You, me, or nobody is gonna hit as hard as life. But it ain't about how hard ya hit. It's about how hard you can get hit and keep moving forward. How much you can take and keep moving forward. That's how winning is done!”

1990’s it was looked upon as mature brand of old-

- Rocky Balboa

of the most loved brands during World War II. Its oriental spicy aroma was a perfect embodiment of masculinity which was defined by ruggedness till 1980s. It lost it sheen during the later half of 1980s

en days. As the brand grew older so did its custom17

MarkMantra Feb 2015 er base and Old Spice didn’t appeal to the youth. In

1990 as the last nail was being hammered in the brand’s coffin , it was bought by P&G which besides being a top FMCG company was also the women’s deodorant market leader.

graders and above. It also distributed samples during skateboard events and sponsored contest for high-school football player of the year. This strategies helped P&G push the product into the locker rooms. The next

Consumer insights based on the research carried

gig was to place Old Spice in video games, includ-

out by P&G revealed that Old Spice was viewed as

ing Electronic Arts Inc.'s (ERTS) NCAA Football

a brand of a forgotten generation. Moreover its old

2005. The outcome: deodorant sale slowly picked

sailor image no longer appealed the youth. An in-

up. However good times were yet to come as the

teresting insight, though, was that men remained

deodorant faced stiff competition from Right

loyal to brands for longer period of time and they

Guard and Axe. In early 2000, Market research car-

loved brands which gave proof of their worth. Thus

ried out by P&G revealed that

the challenge was to make the rugged masculinity appealing to an all new target customer base i.e.

(18-35 years of age) and cash in on their loyalty by giving them proof. One of the first innovative tactics employed

body sprays and body washes had replaced soaps and

cologne when it came to male personal

grooming and that soap was a viewed as a gender neutral item. Thus in 2007, it had to come up with

un-

“Old Spice Challenge”. However, the trump card

der Grass root Marketing Strategy was to launch

was the 2010 “The Man Your Man Could Smell

high endurance deodorant. During its prelaunch

Like” campaign by Wieden+Kennedy. The cam-

campaign P&G chucked out the old sailor and chal-

paign successfully shattered Old Spice’s boring and

lenged the target customer base to try out its new

weary image whilst keeping the legacy intact,

deodorant range. This was followed by “Scratch

through humorous, unique, trendy and youthful

and Sniff” book covers which were sold to 5th

content.

MarkMantra Feb 2015 The campaign was kick-started with a single video

thal combination pushing both sales and buzz up-

featuring Isaiah Mustafa. Witty offbeat and sexy Mustafa talked to the ladies about how anything was possible if their men quit the girly body wash and switched to Old Spice through a humorous screen play of backgrounds. The campaign, which was launched online first and then hit the television screens, went viral. It was “the” most watched commercial during super bowl, as it had

both hilarious content and was well time i.e. launched during super bowl. This was not all; Wieden+Kennedy had kept their best kitty for the last. It was a series of 186 response videos (an online response campaign to tweets) which was more adored than the original video as they were personalized, real time responses to “question” tweets. Moreover Wieden+Kennedy

BASED ON KAPFERER AND KELLER BRAND REVITALIZATION GYAAN : P&G successfully increased the brand awareness through the viral videos Created opinion leadership went in for a distribution change i.e. changed the way to reach target audience Changed brand elements : went in for new products based on consumer insights and a new campaign Changed the target audience

wilfully re-

sponded to “Ellen Show” tweet , hence provoking

wards. Currently the campaign has been given a

the producers to screen it to millions during the

new twist with introduction of a challenger “Fabia”

show. Thus they were able to garner publicity without paying for it. The campaign’s success demonstrates how well one can exploit social me-

Lego Toys

Rebuilding the brand brick by brick

dia platforms like You Tube and twitter whilst enjoying free publicity. Personalization coupled with real time responses and wit turned out to be a le-

Started in 1930’s great depression, Lego continued its dream run till 1993 when Chinese counterparts stole its pie by manufacturing and selling toys at a

much cheaper price. Moreover with the advent of

Watched by more audience in 24 hours than Obama’s presidential victory speech Total video views reached 40 million in a week. Campaign impressions: 1.4 billion. Since the campaign launched, Old Spice Bodywash sales are up 27%

the likes of videogames, the target consumer base for Lego shrank. Now kids started using complex toys at an early age and hence would play with Lego toys for less number of years. Lego wasn’t ready to give up the fight so easy. Lego went on an

innovation spree to rejuve19

MarkMantra Feb 2015 nate its brand. However it decided to do this by

Lego outsourced manufacturing to Mexico to re-

adhering to experts’ gospel of innovation and so it

duce cost. It gave up on the “Blue Ocean” ap-

failed miserably leading to losses worth £ 300 mil-

proach of entering high risk “new product” catego-

lion in 2003 and brought itself to the brink of bank-

ries and focused on “Red Ocean” approach i.e.

ruptcy.

competing with Lego-like toys in 3D and on video-

In 1993 and the years that followed, Lego added more toys to its product line, but its sales didn’t improve. Thus the manufacturing and delivery

games. It went forward to open retail stores. Moreover it created Lego-themed board games and straight-to-DVD films.

costs skyrocketed without revenue addition to sus-

In 2006, LEGO regained its lost fame and became

tain the same. At the same time, consolidation

the sixth-largest toy manufacturer of the world .Its

among some retailers and the phenomenon of big-

revenue increased to £717 million, an 11% in-

box

stores

made it tougher for

company

leadership

negotiate prime shelf space for

Legos. Moreover they went on to add Lego range of electronics, interactive video games& jewellery and

crease over 2005 with net profit of £123.5 million,

started amusement parks & education centres.

a jump of 6.5%.

They also entered into new markets which were virtually competition free and niche segments.

They tried to boost sales by manufacturing exclusive Harry Potter and Star Wars range of toys, but

BRAND REVITLIZATION AND STRATEGY SHOULD GO HAND IN HAND

this didn’t stick as the sales took off only when the films or books were launched and remained slack otherwise. In 2003, Lego got a new team which streamlined its brand re-

Volkswagen Beetle

The Love Bug

vitalization efforts. Following divesture from theme parks 20

No one imagined that the Automobile Goliath of

MarkMantra Feb 2015 1960s that left its competitors fumbling for market

The beetle with a new edge (Concept 1) displayed

share through the most innovative advertising

in 1994 Detroit Auto Show received a huge and un-

campaigns ever, would falter and would have to

precedented accolade. This was followed by a suc-

revitalize itself with an innovative line of products.

cessful prelaunch campaign “Drivers Wanted”-with

Following its heyday during 1960s and 1970 with

the tagline “On the road of life there are passen-

record sales of 569,000 in 1970, darkness lingered

gers and there are drivers.” Considered as one of

over the future of the brand in 1972 as VW faced

the most innovative Ad Campaign (1995-2006) in

bankruptcy. The oil crisis along with tough compe-

the history of automobile it was extended to Phae-

tition

forced

ton and others models too. Uniqueness of the cam-

VOLKSWAGEN to come up with conventional de-

paign lies in the fact that it portrayed driving a

signs- Passat and Rabbit. The worst was yet to

Volkswagen as new way of living! It didn’t spare

come for VOLKSWAGEN as the competition be-

anyone, be it those driving Japanese Cars or Cheap-

came more fierce in 1980-90s. In early 90s the Bra-

er American cars or those driving costlier European

zil and Mexico plants too stopped production of

cars

Beetles and the sales plummeted to 49,000 units.

achieved this feat through just a

This was when VOLKSWAGEN California design stu-

minute long video!! The video de-

dio’s manager, J Mays and designer Freeman

fines “drivers” as those who in life

Thomas conspired to revamp the most loved

make things happen, love chal-

VOLKSWAGEN brand: THE BEETLE

lenges, enjoy risks and do not

from

Asian

contemporaries

other

than

German.

MarkMantra Feb 2015 view car as just another mode of transportation.

perfect launch pad for BEETLE as it had the most

Their cars are made for spirited souls and were

unique shape in the automotive world — most ele-

more drivable than the boring Japanese or Ameri-

gant design

can cars that focussed on taking a back seat and

technology. Moreover it could also be used for

were for the passengers who take what life throws

other cars models too!! The sales of the new bee-

combined with innovative German

at them! Moreover the VOLKSWAGEN drivers were

BASED ON KAPFERER AND KELLER BRAND REVITALIZATION GYAAN VOLKSWAGEN SUCCESS CAN BE MAPPED TO New use for the product- different way of living a special breed who believed in getting their mon-

Innovating the product-newer

ey’s worth – i.e. German Engineering and not

versions

those who would splurge on any other European

Distribution change- Creating a pre launch platform through an innovative campaign

Brand. On probing we realize success of the campaign lies in its rational as well as emotional appeal.

Rational being, Volkswagen was the sole

brand offering the benefits and the “feel” of German engineering within reach. Emotional:

Changing the brand elements

IT CHANGED THE PURPOSE OF BUYING A VOLKSWAGEN

VOLKSWAGEN

offered excitement, a different

reason to drive and a different

tle jumped to 83,434 just one year after its debut

way of living.Thus it acted as a

in 1998, moreover the campaign boosted the sales

MarkMantra Feb 2015 of Jetta and Passat too. Since then VOLKSWAGEN

ternative strategy- when carried out strategically.

has come up with Beetle Convertible and Sports

This opens another Pandoraâ&#x20AC;&#x2122;s Box â&#x20AC;&#x201C; whether the

model Turbo S along with others such as Phaeton.

corporates should take the longer route of Brand Revitalization or the shorter route of axing?

Conclusion:

Which of the two is more feasible?

This is not all!!There are many other Goliaths out there in the Biz world including our very own Dabur and Bajaj Auto. For an age obsessed with brand rationalization, prompting even giants like P&G to downsize their portfolio, brand revitalization or rejuvenation may be looked upon as an al-

Shatabdi Banerjee MBA(IB) 2014-16 Indian Institute

Of Foreign Trade

Achievers at IIFT

IIFT wins ETiC (ET in Campus) Quiz, 2015 IIFT was represented by the duo Kunal Malhotra and Viraj Bake of IIFT Kolkata ,who defeated 83 participating teams to grab the top slot.

MarkMantra Feb 2015

Minimalistic Advertising

we go again being all Sherlock and start investi-

It’s Sparta all over again!!

sive consumerism with overbearing ads, these are

gating them. First look at this Durex Ad-and all I could think was laconicism- simple and terse yet witty precise and powerful! In the world of exces-

the ones that create an ever-lasting impression on egends say that when Philip II of Macedon implored Spartans, "if I bring my army into your land, I will destroy your farms, slay your people, and

raze your city” and threatened them to yield, Spartans of Laconia sent a one word reply “If” Confused?? So was I, while analyzing the witty

the consumers. After all, “A picture is worth a thousand words”; for this visual delivers every bit of information one needs to decipher what the

brand is trying to tell. This form of advertising is known as Minimalistic Advertising. Minimalism employs the notion of “Less is more”. All the visual noises are taken off the sight of the viewer and the focus lies only on the central message – what the brand or the product is trying to tell you. Everything is clear and uncluttered. What it achieves is what every marketeer wants – the complete and undivided attention of the consum-

Durex, Zomato, Ikea and many more similar ads. For a diehard Don Draper fan no sooner does any new advertising campaign hits the stands, there

MarkMantra Feb 2015 er. Combine it with a dose of humor and voila! We

get a brand that has the top of mind recall like

flecting its idea of laconicism. Before we delve into the advertising aspect of these designs, let us look at the origin of the minimalist designs. Minimalism originated in Japan from the Zen philosophy. It played an influential role in determining the architectural designs in the US mostly in the 18th and 19th century. Minimalism essentially captures the idea of simplicity. The architecture consisted of large empty spaces and white elements, using minimum objects and furniture, all conveying

never before. Not only with the print ad, minimal-

the simplistic attitude towards life. This idea of

istic marketing though videos is also picking up

minimalism then expanded to literature, music and

with the number of YouTube users

then ultimately to television

skyrocketing in the last few years.

and print media where many

No I am not going to analyze

aforementioned Durex ad and

of the worldâ&#x20AC;&#x2122;s leading companies have used it to perfection.

spoil all the fun!! Itâ&#x20AC;&#x2122;s open for the

It is important to note that the

readers to analyze!!

1950s-60s saw a change in the

How would you react to a pink colored can of Pepsi??? Colors play a vital role when it comes to advertising as consumers have predefined notions regarding colors which have been engraved in their knowledge structure. During the consumerâ&#x20AC;&#x2122;s decision he/she refers to such color associations. Although the consumers may not know the impact of the color combination consciously, a marketeer fully appreciates its impact on the subconscious knowledge structure. It can be the differentiating factor for a buyer between one products and its rival. In minimalism,

way contemporary advertising was being done, most notably by

the

advertising

agency

Doyle Dane Bernbach whose motive was to promote the product by creating

ads based on artistic designs with a powerful and logical presentation to gain the public attention. It was a shift away from the previously heavy reliance on the use of statistical data presented to the public to sell products. Fresh and imaginative insights with tremendous dependence on art coupled with a creative revolution led to the emergence of

the world-famous names such as

generally three or fewer colors are used, re25

MarkMantra Feb 2015 Bob Gage, Leo Burnett, David Ogilvy, George Lois,

bach (DDB) was the force behind this creative con-

etc. who laid the foundation of minimalistic adver-

cept. During that time, the VOLKSWAGEN Beetle

tising.

was known as the “Hitler car”. Do you think anyone would have bought it after World War II? That was the same problem being faced by DDB and Volkswagen. They had to change the perception of the car and the brand as a whole. Moreover the 1960s was known as the decade of BIG. From cars to hairstyles, from Woodstock Concerts to families,

everything was big and as one can very well imagine the advertising trend followed that train of thought. So as we can see that there were multiple challenges that had to be overcome. Enter the “Think Small” campaign. These ads were the exact opposite of what the people expected a car ad to be. The automakers put a small car image on huge empty white spaces. What this did was to

force the consumers to focus on the car along with

Volkswagen

the printed text at the bottom. Not just this, the car makers were brutally honest, joking about it

The German automobile car manufacturer was the pioneer of this concept wherein they started the “Think Small” campaign in the year 1959. Volkswagen is known for its crisp classic white background print ads, which feature their world famous automobiles along with a cheeky tagline or a message to tickle the funny bone and also appeal to those adventurous by nature. Volkswagen’s revolutionary ads changed the way the world looked at them. It helped to create a lifetime of brand loyalty and the “Think Small” ad was voted by Ad Age as the best ad campaign of the twentieth century.

The ad agency of Doyle Dane Bern26

being the slowest hatchback in the US and using the word “Lemon” and “Bug” to describe it. However it turned out to be the rebel car which that generation of young people took an instant liking to and along with the minimalistic ideals they gave

a fresh approach to see a car. The self-deprecating humour and the irreverent

ap-

proach made it a big which could be clearly seen in the sales figures. Before this cam-

paign

150,601

MarkMantra Feb 2015 VOLKSWAGEN Beetles were sold in 1958 which

ational power than anyone else in the office ex-

rose to over 1 million by 1963.

cept me”.

The given images show as to why Volkswagen de-

Zomato

serves a standing ovation when it comes to fully exploiting the concept of minimalism.

Apple The world’s most valuable company Apple is one of the big league organization when it comes to

the use of minimalism. Co-founder Steve Jobs was known for his focus and determination on using a simplistic and minimalistic approach in the styling

“There are two kinds of people in this world” This campaign of Zomato saw the internet food community going crazy with people sharing and tweeting these pictures. With over 1 million of its App downloads along with over 8 million visits per month, it can be seen that the campaign was received with much love and affection, helping raise

the brand’s goodwill to a great extent. One more interesting thing that can be pointed out is that creating such minimalistic ad campaigns do not take up a major chunk of your advertisement budget and hence it could become a very essential digital marketing tool for all the start-ups.

Conclusion and designing of all Apple products which highlight

With the advancement of technology, there is a

there elegance. Design to him was of utmost im-

many fold increase in the ability of the advertisers

portance and was one of the key elements of the

to develop new and innovative styles of minimal-

success story of the most valuable organization in

ism. Moreover an effective minimalistic marketing

the world. Apple’s chief designer Jonathan Ive has

approach has a huge impact on the audience,

confessed to be inspired by Dieter Rams, the chief

some of them are mentioned be-

designer at Braun who was known for his minimal-

low:

istic designs and the rest as they say is history. Ste-

ve jobs regarded Jonathan Ive “to have more oper27

MarkMantra Feb 2015 

It helps marketers simplify choices for their

customers and eventually makes the buying process a pleasant and a relaxed experience thus increasing chances of a repeat purchase and the possibility of word of mouth advertising 

It helps establish trust between its products

words but just with a few images and taglines 

Information is everywhere but it is extremely important to provide only the valuable and relevant ones. A good minimalistic approach does just that

Today digital media marketing plays a very important role in the communication strategy of all organizations. Any brands worth its salt would perform very well if it sees the potential that the minimalistic marketing approach has to offer. All one needs is creativity and the desire to make one’s customer happy and satisfied, so that the brand does not just create an impact, it creates a lovemark.

Supratik Chakraborty and their users since the latter knows that the

MBA(IB) 2014-16

company is not trying too hard to sell 

Indian Institute People always love a great story. Through this

Of Foreign Trade

medium, one may tell a story not with winding

Achievers at IIFT Daksh Uday Shah Of Kolkata Campus Stands tall at The Young Entrepreneurs in Franchising Global Competition He is one of the elite 50 who would be attending the Next Generation Franchising Summit, at the MGM Grand Hotel in Las Vegas, Feb 15-18

MarkMantra Feb 2015

“The best marketing doesn’t feel

like marketing” he above quote best exemplifies the

to make the customer a part of the process of change and engage with them accordingly.

What is Relationship Marketing?

conundrum faced by most marketers

By definition relationship marketing is the aspect

in today’s world. With increasing

of marketing which focuses on customer loyalty

number of brands vying for consum-

and long term customer engagement rather than

er attention, it is critical for them to remain rele-

short term goals like customer acquisition and

vant. The well-known fact that it is easier to retain

sales maximisation.

customers than acquire new ones is gaining more and more importance.

It involves not only maintaining a long term connection between the brand and the consumer but

The transition to service based products has made

also strengthening brand loyalty and most im-

customer relationship management the prime tool

portantly bringing ‘emotion’ into marketing.

for retaining customers. The most successful

brands try and reduce the distance between themselves and the customers. It is important for them

The simple act of writing the name of the customer on the cup won Starbucks many new customers and more importantly created an everlasting bond with its existing customers. Relationship Marketing involves ingraining such simple steps into the communication of a brand. Singapore Airlines, American Airlines, Ikea among others have been hugely successful in retaining their customers and it has been

MarkMantra Feb 2015 made possible through their communication com-

bined with a superb service and product offerings. According to many researchers and academicians, marketing has been characterised by three different waves since World War II. They are: 

Mass Marketing- Focused on economies of scale and mass products and services were advertised and distributed heavily.



Targeted Marketing- Led to the creation of specialised products and services for niche audience



Global Marketing- Targeted approach across geographies. It was done when marketers realised that consumers across globe have much more in common than it was previously realised. Led to the creation of global brands like Coca Cola and McDonald’s

All three waves occurred subsequently and the current millennium is characterised by the goal of increasing profits rather than just increasing sales. Creating and enduring a long term customer rela-

product launches and presentations managed to create a worldwide community of Apple fans.

Customer Database

tionship will have better chances of equitable profits.

Companies involved in providing services traditionally maintain a very good database of their cus-

Key Components

tomers. However, with the distinction between

The goal of a marketer must be to enable a cus-

products and services narrowing down each day

tomer reach the highest step in The Loyalty Lad-

every company is now paying serious attention to

der. Marketing cannot end at ‘Gaining a Custom-

it. Every customer interaction must serve as a

er’. It must go all the way to making the customer an ‘Evangelist’ of the product/service.

source of customer information. With internet transactions the order of the day, direct sourcing of information has become much easier. It is now

Steve Jobs brilliantly capitalised on the loyal-

ty ladder and through immensely powerful 30

imperative for brands to engage in Database Mar-

keting. This can happen in form of one to one com-

now even Mobile Postpaid plans (Idea! Plan and

munication with consumers and can begin with

Airtel myPlan) being customised to suit a particular

simple steps such as personalised messages on

customer/group of customers, the time is not far

special occasions.

away when products will also be tailored according

Based on the information in the database, customers can be segregated into values and those with a higher and longer time value to the company need

to a consumer. The age of mass customisation is being driven by technology. According to a brief circulated by the consultancy Bain & Company , use of big data by retailers to offer a personalised set of products to customers is the driving force

to be targeted particularly. With the advent of Big behind their success. Online configuration technologies, 3-d modelling and printing has made profitable mass customisation a reality.

According to

McKinsey, mass customization has the potential to help companies increase revenue, gain competitive advantage and build loyalty. Nike and Converse offer such customisations, albeit at a higher cost. The mantle for bringing such customisations Data technologies which allows further refinement

of data, companies nowadays have access to much

into mainstream has been taken up by start-ups which try to stay lean and keep costs down. Indo-

more analysis and can thus focus their efforts in a much better way.

Product & service customisation The other component in maintaining a closer relationship with a customer deals with providing choices and responding to individual needs. With

service offerings such as club memberships and

chino, a Boston based company selling

MarkMantra Feb 2015 made to order menswear, charges $29 to send a

it also leads to attracting more customers and con-

tailor’s kit containing 16 fabric swatches, measur-

sequently a better growth rate. Between 2000 and

ing tapes and a $29 credit toward a future order.

2003, Southwest Airlines had a recommendation

By avoiding a brick and mortar presence, Indochino is able to keep its prices down. Surely, the larger brands with better capital and access to technology have a role to play in the coming days.

Loyalty Programs Loyalty programs and schemes are especially designed to make the customer stick to a product. However, these programs need to be made with not only good intentions but also clear objectives. The modern day loyalty programs pioneered by companies like American Airlines and Marriott have gone beyond just attracting and holding cus-

rating of 67 per cent and was growing at 5 per cent

tomers. The legendary Advantage of American Air-

per year at a time when the industry was in de-

lines has been a guide for nearly all service pro-

cline.

grams.

The natural progression from Loyalty programs is

Loyalty programs not only hold customers but also

building a brand community. At this stage the cus-

give treasure trove of information about the most

tomer undergoes transition from being an

important consumers. Retailers have used this to

‘Advocate’ to being an ‘Evangelist’. When custom-

their advantage and currently enjoy the highest

ers start engaging with each other based on their

loyalty as compared to airlines, hotels and credit

love of a brand, it not only takes the brand to an-

card providers among others.

other level but also ensures the long term sustain-

Loyalty Programs need to be designed to maximise customer value, not maximise earnings. A lot of marketer confuse such programs with rewards. Relevance becomes more important than magnitude. The success of such a program can be judged on the basis of recommendations given by a

ability of the brand. It now becomes the responsibility of the brand to maintain and elevate its standards to keep the community together. According to a 2009 HBR article, brands must treat communities as a business strategy rather than a marketing strategy.

loyal customer, a metric commonly known

The success of Harley Davidson post its buyback in

as ‘Net Promoter Score’. A higher score not

1985 illustrates the business strategy of communi-

only results in more retention of customers,

ties. The company refurbished its entire business

MarkMantra Feb 2015 model, organisational culture and governance to

In conclusion

drive its community. Technology has life cycles and so do products. But Brand communities do not necessarily be driven by

a brand can live forever. To avoid falling into the

love and common interests. Propagation of com-

trap of lifecycles and ultimately a slow death, brands must devise ways to continuously engage the customer. Creating and sustaining brand loyalty is the best way to maintain consciousness. It can occur by creating a business strategy which rewards loyalty and grows business through loyalty. It is important that consumers remember brands fondly. Customer Relationship Management is about winning and keeping customers which is a never ending commitment.

munity takes place much further with embracing conflicts. A glimpse at some of the famous brand

Anmol Garg

wars gives us the idea - Apple vs Microsoft, Xbox vs Nintendo vs Playstation, iPhone vs Samsung Galaxy

MBA(IB) 2014-16

etc. Such conflicts bring out the evangelists and

Indian Institute

brand promotion takes place on a hitherto differ-

Of Foreign Trade

ent scale.

Latest Events at IIFT

National Agenda of Entrepreneurship (NAE-2014) Anurag Batra, Chairman, GBN Media, Business World addressing the audience 33

MarkMantra Feb 2015

couple of days back I walked into a stationary store to buy myself a notebook. As I scanned the sections to pick the most suitable book something caught my attention. I saw a notebook with an advertisement printed on it that said a rupee out of the total price of that book would be donated for the cause of a child’s education. A happy child’s face was pleading with me to pick this over any other book available in that store. At heart most of us are considerate and caring. We all wish to make a difference to someone else’s life in any possible way. That child’s smiling face had already made the decision for me. I finally bought that notebook, not realizing that I had just fallen victim to a phenomenon called CAUSE MARKETING. Cause marketing is a type of marketing (activity) involving a symbiotic relationship between a profit(able) business and a non (not for) profit business for mutual benefit. Although this could be easily confused with CSR (Corporate social responsibility), in essence it is quite different. CSR 34

activities in general can be termed as a form of donation which are tax deductable and are the most fundamental form of charity. Cause marketing is a little different. Let’s take the example of Pampers. They ran a campaign wherein for every pack of diapers that you bought you would be contributing towards a vaccination program. You could see

“I support the 1 pack = 1 vaccine program!” printed on every pack of diapers, urging its customers to pick them and contribute towards the cause. This was philan-

thropy with a twist. This kind of marketing ensures sales as well as charity, which proves to be a win-win situation for both the profit and not for profit businesses working in collaboration with each other. A cynical mind could always question this sort of an arrangement. It seems too good to be true. Does this kind of marketing actually boost sales? The answer lies in data and statistics. According to a study done by Cone and Duke University’s Fuqua School of Business, cause-related mar-

MarkMantra Feb 2015 keting can increase sales as much as 74% in certain consumer-good categories. It also states that consumers spend twice as long looking at causerelated ads than generic corporate advertisements. This clearly shows that consumers are paying more attention to cause messages and are more likely to purchase such items. This is precisely the reason why a lot of brands are shifting their focus to cause marketing.

Over 13 years, the program has raised nearly $75 million for breast cancer research and advocacy . Live Strong Bracelet (2004 to present): When the Nike and Lance Armstrong Foundation came up with this idea to raise funds and awareness for the

Background Appearing at about the same time as microfinance, the first cause-marketing campaign occurred in 1976 through a partnership between Marriott Corporation and the March of the Dimes, a not for profit organisation that works to prevent birth defects in babies. March of the Dimes' goal was to increase fundraising for its chapters in the Western U.S and Marriott's goal was to generate a cost-effective public relations campaign and media coverage for the opening of their family entertainment complex, Marriott's Great America in Santa Clara, Calif. The campaign was a hit. Since then, cause-marketing expenditures by companies have exploded from almost zero to over $1.57 billion.

super cyclistâ&#x20AC;&#x2122;s cancer charity, no one dreamed it would become a worldwide fashion item eventually to be worn by presidential candidates, movie stars, kids and grandmothers. To date, more than 70 million of the glorified yellow rubber bands have been sold for a dollar each.

Some of the most famous cause-marketing campaigns are: American Express Statue of Liberty Restoration (1983): During a three-month period, American Express offered to contribute 1 cent for each card transaction and $1 for each new card issued and backed the offer with a substantial media campaign. The effort raised $1.7 million to restore the Statue of Liberty and Ellis Island.

Lee National Denim Day (1996 to the present): A traditionally male oriented brand, Lee made huge inroads with women by embracing the breast cancer cause in a unique way: It empowered consumers to organize workplace drives at which employees contributed $5 for the right to wear jeans to work on the first Friday of October.

Indian Context Several global consumer research studies indicate that the Indian consumers are among the most environmentally and socially conscious in the world. In the National Geographic Globescan Greendex survey, which measured the environmental sustainability of consumption across 17 countries, Indian consumers obtained the highest Greendex score. This survey also reveals that Indian consumers feel the highest levels of personal guilt about the environment with 45% of them admitting to feeling bad about their impact com35

MarkMantra Feb 2015 pared with a global average of 28%.The Edelman Good Purpose study conducted across 16 countries suggests that 71% of Indian consumers (compared with a global average of 43%), are willing to pay a premium to purchase products which support causes. The Nielsen Global Socially Conscious consumer report also indicates that Indian consumers score the highest on the willingness to spend more on products from socially responsible companies. Taking this into consideration a lot of brands are trying to exploiting the enormous market potential. ‘Shiksha’, a program by Procter & Gamble, in association with Child Rights and You (CRY) and Sony Entertainment Television, which aims to support the education of children in India is one of the best examples. Tata Tea, one of India’s largest tea brands, started ‘Jaago Re’. It transformed tea from a means of physical rejuvenation to a widespread social awakening. The Jaago Re One Billion Votes campaign, which was timed well with the General Elections, spread the message of the need to vote among citizens. It is estimated that over 6.5 lakh Indians used the platform to register as voters. Aircel launched the ‘Save Our Tigers’, a campaign, which aimed at encouraging citizens to blog about the depleting tiger population, and stay up-to-date with tiger facts. Interested people can also donate money to NGOs working for the cause, like WWF India. According to the Cause Marketing Forum, cause sponsorship is expected to reach $1.84 billion this year, an increase of 3.4 percent over last year. And according to a recent Cone Communications/Echo Global CSR study, more than 9 in 10 consumers are likely to switch brands to one associated with a good cause, assuming comparable quality and pricing. Those are compelling reasons for companies to tie their marketing to feel-good charities. But the numbers tell only one part of the story. The study revealed that about 70 percent of consumers are confused by the messages which the companies use to communicate about their corporate social responsibility initiatives. Moreover there 36

have been some infamous cases of Cause Marketing failures that companies considering such an approach should examine as cautionary tales. KFC’s “Buckets for the Cure” tie-in with the Susan G. Komen Foundation, encouraged people to fight breast cancer by buying pink buckets full of fried chicken. If press coverage was one of the goals of the campaign, KFC achieved it in spades, though not in the way the company would have liked. The

brand was pilloried as hypocritical for using fried chicken to raise money to fight cancer and accused of “pinkwashing,” with one blogger calling it “another sad example of commercialism draped in pink ribbons.”

Conclusion Looking at all the dimensions it gets hard to judge if a brand should or should not get into Cause Marketing. At the end of the day it is the marketer’s call and how they plan to communicate about it, but one must be clear about their wishes to achieve them in a holistic way. Consumer brands

MarkMantra Feb 2015 can serve as catalysts and critical platforms for broad public engagement and support for a cause

tegic sense and is well-vetted. Brands do not necessarily need to support a non-profit organisation or cause to legitimize their profit-making venture. By achieving as much success as they can by doing what they do best, theyâ&#x20AC;&#x2122;ll be better able to support the causes they wish to.

or organization, but we cannot always get blown away by that. It is quite clear that you cannot solve an issue by purchasing soaps or detergents but awareness can definitely be created. The first cause of any company must be its own: to succeed by making the lives of its customers and employees better through the products or services it provides. If they wish to support a cause with their brand it will be successful, as long as it makes stra-

Ekta Deshpande MBA-2014-16 SIBM,Pune

Latest Events at IIFT

International Business And Trade Symposium 2014 -Flagship event IIFT was graced by the presence of esteemed speakers .The Chief Guest Mr. Sandeep Choudhary, Head of Marketing and Sales, South Asia, Panalpina World Transport and Guest of Honour Mr. Dasho Karma Tsering Namgyal, Consulate General, the Royal Bhutanese Consulate in an intuitive discussion with Dr K RangaraFeb ,Centre head IIFT Kolkata 37

MarkMantra Feb 2015

-commerce has seen unprece-

Indiaâ&#x20AC;&#x2122;s Internet population is set to become 342

dented growth as the sheer vol-

Million by 2015, and 400 Million plus by 2016;

ume of interest by consumers for

making it the second largest in the world.

online

Consumer behavior in In-

shopping has grown

dia is changing with higher

exponentially

expendable

over

income,

the last few years in

changing lifestyle, shifting

India. Industry which

demography, rapid urbani-

started out in the

zation, expanding Internet

South has extended

penetration, growing con-

to the northern and

sumer cognizance and un-

eastern

orthodox

corners

promotional

India as well. Indian E-

campaigns. Impulsive buying pattern has increased

commerce is a USD11 Billion market and is ex-

over the last few years as the time gap between

pected to reach USD70 Billion by 2020, growing

aspiration and fulfilment has shrinked with increas-

at a CAGR of 37% over 2013-15. E-tailing which is

ing number of credit options like credit card, per-

only USD2 Billion in size today will grow to be-

sonal loans, EMI etc. In the past decade, consum-

come a USD45 Billion industry. It took 110 years

ers in India have become more aware of the sur-

for the number of land-line consumers to reach 1

roundings and buy products only after doing their

Billion, 14 years for 1 Billion cellular users and 8

own research over the internet regarding the use-

years for 1Billion internet users. The next disrup-

fulness of the products. Also through Smartphone,

tion is coming from smart phones.

product reviews are discussed by consumers be-

Online users in India increased from 140

fore making buying decisions. Even selection of a

Million in FY12 to 213 Million in FY13.

movie is often decided based on the â&#x20AC;&#x2DC;social media

MarkMantra Feb 2015 buzz’ rather than critics ratings. Women play vital

the improvement in infrastructure and strategies,

roles in retail sector and with the increase in finan-

E-Commerce can reach to the next level in India.

cially independent single women, buying decisions

Industry needs to figure out a way to offer value

are not restricted by their requirements but as per

equivalent to the price which consumers are pay-

their preferences and interest areas. In order to

ing and build trust. Gaining customers is not suffi-

pursue women buyers, companies are introducing

cient but re-engaging them is where profitability

gender neutral products even in segments that

exists. This challenge would require the govern-

were conventionally seen as male-dominated such

ment, consumer consortium and retailers to work

as automobile and finance. Consumers are becom-

at devising trust seals and other process by which

ing more logical in their approach rather than be-

consumers can evaluate each retailer.

ing emotional and are looking at high-value prod-

In the recent past online shopping events like “Big

uct that is able to meet their projections. They are

Billion Day” have garnered more attention than

demanding higher services in exchange of their

any other form of E-Commerce site promotion in

money.

India. Although it got marred for all the undesira-

Sustainability of business strategies adopted by

ble reasons such as stock-outs, website inefficien-

the market leader depends on the level of con-

cies, payment failures, erroneous pricing etc. In

sumer faith in online shopping. Reverse logistics

short brilliant online and offline marketing strate-

and delivery concerns are the top two roadblocks

gies hustle in lot of potential customers to the

in online shopping. Moreover a large division of

platform only to disappoint them with operational

Indian consumers are not yet willing to trust and

incompetence. According to website’s statement,

transact online. That conviction is still lacking and

Flipkart achieved 24-hour sales target of $100 mil-

needs to be built up by the industry. Till this is

lion in gross value in just 10 hours. This achieve-

bridged, there will be a huge imbalance between

ment shows that Indian consumers are swiftly ac-

the number of internet users versus the number

commodating to online retail format and being

of online purchasers. In the US, 85% of online us-

ers transact online versus 8-10 % in India. Innovation will attract customers and Cash-on-Delivery service gave access to a large Indian market that wasn’t comfortable with disclosing banking details online and where plastic money penetration was low. While this step has managed to build some trust with consumers, it comes at a price to

very responsive to such campaigns.

the industry.

Attempt was made to attract new custom-

Consumers buying behavior is changing and with

ers online and engender the existing cus-

MarkMantra Feb 2015 tomers to purchase more. This was a perfect traffic

they can sell below cost just to stay competitive

generation strategy. All the signals before the

or improve their market position .However, in case if one is a dominant player then selling products below cost leads to an abuse of dominant position which has dire consequences including payment of penalty of past 3 years average turn-

over. In Indian e-commerce industry none of the players events launch were indicative of a grand victory

enjoy dominant market share. In fact they are

and well on its way to achieve desired sales and

engaging against each other to offer a platform

customer acquisition goal. But, unfortunately Flip-

to two kinds of parties - sellers and customers.

kart suffered a setback. It now plans to reattempt another mega promotion

later

and

hopes to execute it flawlessly. However, in the entire clutter there are definite bright signs for Indian online retail.

“In the beginning, e-commerce was really about getting commodity products online as cheaply as possible. Now, we’re moving into the more exciting phase of e-commerce, where it’s about emotional products—the things that people really cherish.” - JASON GOLDBERG, Founder and CEO Fab.com

Many small and big traders raise concern

about the impact that these kind of promotion activities will have on

There may not be a case of predatory pricing

the traditional retail business. E-retailers like Flip-

against the online retail companies as E-

kart, Snapdeal, and Amazon etc. have been in-

Commerce players operate through Marketplace

dicted of predatory pricing by traditional brick

models which are merely platforms.

and mortar sellers. But if we look into the

If we look into the sustainability of these pricing

legal aspects of these complaints then

strategies and the funding of the discounts, E-

according to Competition Act 2002, if

Commerce companies had adopted these promo-

someone is not a dominant player, then

tional activities for a limited term, varying from a

day to three days. Paradoxically in the brick and

faster delivery and showcasing better customer

mortar market, clearance sales and heavy dis-

services for the product.

counts on limited occasions is a part of the trade,

But in the long run, discounting strategies will

so it may not be ideal to argue that this is anti-

affect sustainability of Indian E-Commerce. Contri-

competitive. As different e-commerce businesses

bution of offline channels to retail in India is very

have distinct operating models and these facts do

high and big consumer brands will find it difficult

not generalize the verdict for the entire sector,

to deal with these channels at some point of time

law inquiries should be very fact-specific. Howev-

if heavy discounting continues. Heavy discounts

er, there is a likelihood of

will make the consum-

other anti-competitive mal-

ers price sensitive and

practices that the Commis-

not product value sensi-

sion can look into. For exam-

tive which can have se-

ple, Motorola signed a deal

vere dreadful impact.

which states that it will reWhether people accept

lease all its Android phones

it or not, the effect of

exclusively on Flipkart and in

this promotion strategy

the other case in which a laptop manufacturer said that it will only provide warranty and customer support to customers who will buy a product from a specific ecommerce

site.

Brick and mortar stores canâ&#x20AC;&#x2122;t afford to ignore ecommerce. A more prudent approach would be to participate in the model. For example, Tataâ&#x20AC;&#x2122;s retail store Croma sells not only through its own store but also through other portals. E-tailing increases the reach for brick-and-mortar stores

marked a pivot point in

the marketing milestone of Indian E-Commerce. In Indian markets we understand the relevance of discounts on sale and it is the usual affair on festive sales. Flipkart took a fearless and smart move to be the first among E-tailers. Amazon, Flipkart, Snapdeal, eBay and other big E-commerce players should and would continue to plan these types of strategies to give big swings to the Indian E-

Commerce growth trajectory.

without heavy investment in purchasing distribution outlets. For participation, a brick-and-mortar store owner can single out e-commerce stores with maximum market penetration and trade there. They can also trade on multiple e-

Manish Kumar Rajak MBA 2014-16 FMS-Delhi

commerce websites. They should promote their products online by explaining product features in a better way, showing more images, providing 41

MarkMantra Feb 2015

he luxury market in India is a

Lobb footwear he/she can place an order

tantalizing and largely unex-

with a Regalia representative who in turn

plored opportunity for tradi-

will get in touch with the client to get the

tional western brands; and ac-

order executed directly from Paris.

cording to ASSOCHAM, in 2013 India was an

This brings us to one of the most important

$8.5 billion global luxury market and is esti-

questions as to why most of the internation-

mated to cross $16billion by 2016 with a

al luxury brands see India as the biggest op-

growth rate of 86 percent in constant value

portunity and yet take baby steps while in-

terms between 2013 and 2016.

vesting in India. Reasons include the follow-

With the increasing number of high net

ing:

worth individuals and burgeoning upper

Lack of infrastructure: Luxury shop-

middle class segment called “HENRY” ( High earning not rich yet individuals) India has become the most desirable and lucrative

market for most luxury goods manufacturers and investors. Still many brands take time to develop and build a market for itself; for example John Lobb has partnered with Regalia Luxury group to offer the “By Request” service in India which allow the brand to open its store in India,

but if the customer is interested to buy John 42

ping is about experiential shopping; generally most of the luxury brands prefer to have their stores in high end shopping streets like The 5th Avenue in New York City or Avenue Montaigne in Paris or Via Montenapoleone in Milan. The ambience and the vibes that such locations provide are totally nonexistent in India. Marco Bizarre, president and CEO at Bottega Veneta expressed his sadness about the unavailability of quality space in India to open stores. In

MarkMantra Feb 2015 India, most of the luxury brands are housed

anti-counterfeiting.”

in either of the 2 Luxury malls (UB city and

Talent Crunch: With varied customers

DFL Emporio) or five-star hotels. This quality space comes with a premium price but it does not cater to creating an exclusive ambience and experiential shopping which is the Holy Grail for luxury.

shopping luxury, a key challenge is talent! Geneva-based luxury industry, estimates that India would need about 1.76 million people in luxury market by 2022. A luxury professional can’t be too ordinary to not

High Import duties: Tax on imported

make an aristocratic customer slink away

luxury goods ranges 20 to as high as 150 per

and at the same time cannot be so sophisti-

cent depending on the product. As per

cated to scare away the new customer!

Stefano Canali “More than three-fourths of

Driving this balance in line with the brand’s

the expenditure on luxury by Indians is out-

cultural customer experience is the biggest

side the country” as the same product cost

operational challenge for any brand.

20 to 25% lesser in Europe when compared

Every Luxury professional seems despond-

to India. Though India has liberalized FDI

ent when the country is not meeting its eco-

policy, few clauses like 30% of local sourcing

nomic potential. Yet getting traction in the

act as the detriment to luxury brands. One

Indian sub-continent has been a challenge

of the most important qualifying parame-

for every Western luxury brand that has

ters for the brand to feature as a luxury

tried to crack this complex new market. But

brand is its indigenous manufacturing in the

for brands with staying power in India and

country of its origin. With 30% local sourc-

which better understand and connect with

ing, this becomes a tough task and affects

the local Indian consumer by fine tuning

the product’s brand positioning and quality

their specific positioning and shifting focus

standards.

from fighting against the constraints to in-

Counterfeit Products: Another ma-

novating within their confines will eventual-

jor hurdle for luxury industry is the counterfeit products which are pegged at close to Rs 2500 crores in India. Market for fake lux-

ly reap long term dividends.

Pragati Chauhan

ury is growing at twice the times of genuine

luxury market which tarnishes the prestige

Prajana Alva

of the brand along with their tradition, identity and image. LVMH spends around 5% of its revenue and has “60 people at various

PGDM 2013-15 TAPMI

levels of responsibility working full time on 43

MarkMantra Feb 2015