Markmantra August 2015 || TradeWinds

In this Edition

Faculty Speak

Brandwagon WarS

Summer Diaries

MM Legacy

MarkMantra TradeWinds 2015

2

MarkMantra TradeWinds 2015

From the editors’ desks:

“W

hile the wanton zephyr sings,

roll out Brandwagon Wars where BrandWagon,

and in the vale perfumes his

the marketing club of IIFT battles it out over burn-

wings”- these words by John

ing topics in the marketing world. The theme of

Dyer pave way for the balmy TradeWinds, bringing

this edition is Evolution of Marketing and true to

along the evolving trends in the world of mar-

its words, it has touched upon marketing tech-

keting. With TradeWinds, the August issue of

niques of different decades. The advent of tech-

MarkMantra, the family embraces its readers.

nology has ushered in innovative channels of

Known for its innovative and blue-sky ideas, the

reaching out to the consumers and this edition dis-

house of MarkMantra has yet again come up with

cusses them with equal passion. We are back with

two new sections along with its usual fare. Ser-

Summer Diaries - to give a glimpse of the corpo-

mons from the Guru, an informative rendezvous

rate world to the first years. To conclude, this edi-

with Dr. Saikat Banerjee, where he enlightens the

tion hopes to re-instate its position in the hearts of

readers with the inside out of brand consulting,

its readers while celebrating the numerous

debuts in the August issue. From our arsenal, we

achievements in the marketing domain!

The Team: Senior Editors Shatabdi Banerjee

Harshit Vyas

Ipsita Gochhayat

Supratik Chakroborty

Junior Editors Deepesh Sehrawat

Juhi Arya

Shruti Thakre

Suchetana Pal

Inking an Indelible Mark!!

3

MarkMantra TradeWinds 2015

5 9

13

16 Market Entry Strategies

21

26

Marketing in the Time of Crisis

Summer Diaries

30 The Olden Days and Olden Ways

Brandwagon Wars

35

The Tipping Point in Market Research

54 4

44

Multichannel Transformation of Marketing

MarkMantra Legacy

Personalized Retail Experience How Brands were Born

Sermons from the Guru

MarkMantra TradeWinds 2015

Personalized Retail Experience

T

he marketing by the e-commerce

commerce: Uncovering Innovation' study reveals

giants in India like “Aur dikhao”

that the digital commerce market in India has

and “nahin kharida, acha kiya”,

grown steadily from $4.4 billion in 2010 to $13.6

(Amazon and Flipkart respectively) was a huge suc-

billion in 2014 and likely to touch $16 billion by the

cess in India. This was one of the ways to pull the

end of 2015 on the back of growing internet popu-

customers to buy products from their site and lure

lation and increased online shoppers. It said online

them by discounted deals. The deep discount

travel accounts for nearly 61% of e-commerce

model adopted by them may not be a long term

business while e-tailing contributes about 29%.

solution to increase profits, but it surely increased

This may be a matter of concern for the e-tailers.

volume of products sold.

The study also states that the e-commerce compa-

With online shopping through e-commerce

nies are concentrating their efforts on increasing

sites gaining traction among the consumers in to-

the penetration of their mobile apps for higher

day’s digital world, the Brick and Mortar stores are

growth, adding that big players in this space claim

finding it extremely difficult to hold their consumer

to have more than 50% of their revenue coming

base. Consumers now-a-days have a plethora of

from mobile apps.

options for the prices as well as selections. The

Future scope of market:

reason they turn up to the Brick and Mortar stores is the personalized experience that they leverage.

E-Commerce is becoming a part and parcel of today’s lifestyle. In India e-commerce has grown by a

Penetration of e-commerce in India: E-commerce has emerged as India's new

whopping 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014 and is expected to be in

sun-rise industry and is set to cross business worth

the range of 22 billion USD in 2015.

$16 billion by the end of 2015, a joint study by AS-

With

SOCHAM-Deloitte

smartphones, tablets and internet

said.

The

'Future

of

e-

the

increasing

use

of

5

MarkMantra TradeWinds 2015 broadband and 3G, a strong consumer base is be-

and Globalization) generation of India which is

ing formed which is likely to increase further. This,

tech savvy is using e-commerce as a ‘need’. As per

combined with a larger number of homegrown e-

the analysis of PwC around 75% of the e-

tail companies, with their innovative business

commerce users in India are in the age group of 15

models, has led to a robust e-Tail market in India

-34 years. However, a major chunk of people still

rearing to expand at high speed.

prefer to visit a shop, touch and feel the product,

There is a twist:

bargain with the shopkeeper before finally purchasing it and thus get the feeling of “Customer is

The post liberalization (Liberalization, Privatization

King”

Pros and Cons of the Brick & Mortar stores:

Attribute Pros

Brick and Mortar Quick delivery

Online retail Lower overhead cost

Advice from Sales staff

Greater selection

Tangible experience with User reviews product before purchase.

Customization possibilities Less regional market inefficiencies.

Cons

Lower selection

Shipping cost

Higher overhead costs.

Shipping time Less benefit from Sales staff

Successful

Groceries/Apples

Amazon

examples

Jewelry stores

Flipkart

Apparel

Snapdeal

Cars

6

MarkMantra TradeWinds 2015

Personalized retail experience: Shopkeepers have to be innovative so that they do not lose their customers to the ecommerce websites. For this they first need to understand the diverse outlook of the customers visiting their stores, an illustration of which is shown

instance, when a shopper first buys nappies, they

send coupons for toys – but surprisingly, also for beer. Their research has shown that new fathers tend to buy more beer at the supermarket as they’re going to the pub less. And it works. Tesco achieved coupon redemption rates ranging from 814% – far higher that the grocery industry average.

below.

Some vital stats:

46% of shoppers will buy more from a retailer that personalizes the shopping experience.

75% of retailers believe that The above image shows the choices made by different people while shopping. It is important

developing a more engaging instore customer experience will be critical to their business.

that the retailer is able to meet the needs of few, if not all, types of customers. The success of the retailing business largely depends on this. In order to nudge the consumers to buy in-store, offline retailers are using tactics like knowledgeable sales staff, in-store pick-up of online orders, in-store Wi-Fi,

same employee for same customer etc.

Personalized retail experience is more than just knowing the name of your regular customer, though it is the first step. Although ecommerce websites have the data of every shopper that visits

7.5X Customers who shop exclusively in-store visit an average of 7.5 times a year vs those who

shop online and browse a retailer an average of 3 times a year. (5) 80% of customers prefer to be acknowledged in-store rather than via digital channels.

them, retailers are not behind. Let’s take the example of Tesco Clubcard. They have a unique way of analyzing the data. They look at the lifestyle be-

hind shopping habits and respond to changes. For 7

MarkMantra TradeWinds 2015

The 8 step approaches to build as

sonalized products. There is plenty of data availa-

well as retain the relationship with a

ble but the trick lies in efficiently using it. Used in-

customer :

telligently, this insight will not only shape what products retailers stock but also how they market and sell them. There are some more examples which show that personalized retail experience has been successful. Raymond Linen suits, Airtel’s onefamily-one-plan, Pantaloons loyalty points, Big Bazaars festive discounts and many more convey the

message that, in spite of having an online player, they have been fairly successful.

The iron is hot and competition between e-tailing and retailing is at its peak, it’s up to the players to

Preyas Jain & Conclusion:

Milan Modi

Consumers today want something that’s unique

MMS 2015-17

and reflects their personality. Retailers understand this and we are seeing more companies offer per-

SIMSR Mumbai

Omni Channel Retailing Omni-channel retailing is the use of a variety of channels in a customer's shopping experience including research before a purchase.

Such channels include: retail stores, online stores, mobile stores, mobile app stores, telephone sales and any other method of transacting with a customer. Read More...

8

MarkMantra TradeWinds 2015

A

Brand is a name, term, packaging de-

The real push came in the latter half of the nine-

sign, symbol or a combination of all of it.

teenth century, when with the dawn of industries,

A brand is one which helps to identify

markets assumed a bigger scale. With the advent

one seller’s goods and services from another and

of technology, manufacturing plants shifted to

differentiate those goods and services from those

mass production of similar products with con-

of its competitors. Brands have been around for

sistent quality. Consumer goods like detergents,

many years. The concept dates back to 2000 BC,

soaps, biscuits, teas etc. were affected the most by

when hot iron rods were used to “Brand� or burn

this homogeneity, thus giving rise to the need for

marks or symbols into cattle, crockery, slaves or

branding. Several facilitators contributed to the

any property of value to identify ownership. When

growth of manufacturer branded products. Im-

homogeneity dilutes identity, branding steps in as

provement in transportation and communication,

a differentiating tool. From the ancient Greeks and

attributed mainly to expansion of railroads and

Romans who inscribed messages on their pots,

postal service, connected people and helped build

metals wines etc. to advertise and sell them, to the

distribution networks across the nation. Urbaniza-

distillers of the eighteenth century who burned

tion and prosperity led to increasing purchasing

their names on the wooden casks to identify their

power, a change in attitude towards products and

whiskey from one another, to the eighteenth cen-

purchase. A middle class of people emerged who

tury when the brand name used to be the name of

had disposable income and a want to participate in

the creators of the product, the brand concept has

the consumption of all novel products leading to a

seen a gradual incremental evolution. The signifi-

retail revolution. Departmental and variety stores

cance of branding was limited since the products

opened up, giving the middle class a chance to

were mostly craft-based, few in number and hence

come and see for themselves what is available for

already differentiated.

sale, thus making shopping a more intriguing experience. Advertising, specifically the print media, 9

MarkMantra TradeWinds 2015 was turning into a major industry in the period.

competitors, people will buy your products for

Newspapers, magazines and outdoor signboards

sure. Companies like Coca-Cola, Levi’s and Strauss

were used to reach people and convey brand sto-

co., American Express were enjoying the monopoly

ries. Some of the national brands of the time were

of providing the best quality products to the con-

Kodak camera, Coca Cola, Heinz, Gillette safety ra-

sumers. However, things started changing when

zor.

competitors also started providing quality at par

1915-1929 was the era which witnessed new methods of brand management. Few firms like Levi’s Strauss and PepsiCo employed functionally

with the earlier market leaders. Hence, consumers now had the option of choosing between products, giving rise to the need for differentiation.

specialized management structures to manage

Large corporates started analyzing strategies to

their brands. Brand managers coordinated all mar-

distinguish themselves from the competitors and

keting activities for the brand, focused on product

thus began the “Brand War”. Be it the automobile

quality and consistency, advertising and distribu-

sector, consumer durable or retail sector, compa-

tion channels. In coordination with advertising

nies started building their distinct identities. This

agencies, they worked out promotional strategies

led to the emergence of the “Mad Men” era during

for the brand. The brand management system was

1960s. The smart-marketing activities of 1960s

born in 1931, when Richard Dupree, President of

have stood the test of time and laid the foundation

P&G, approved of P&G having its own formal

and standards for all brands today. Successful mar-

brand managers and assistants dedicated to the

keting was suddenly all about understanding the

advertising and other marketing activities of P&G.

consumers and designing the appropriate brand-

1950s was the era in which brands finally started making sense to consumers. Branded products were associated with good quality and were recognized easily since they were rigorously promoted through advertisements and sales promotions.

Manufacturer-branded products had distinct identities and consumers started forming their brand preferences based on their experiences with the products.

Till the 1960s, companies did not focus on advertising their products. The reason was simple, they didn’t feel the need for it; for as far as the quality

of your product remained better than that of the

mix, which encompassed the brand logo, product price, packaging, advertising and promotional activities. Hence, brands became more than just products. Corporates came up with their value propositions in the form of “Brand Mantras” to win

over customers. If the message was properly conveyed, people would start connecting with the brand.

It is clearly said, “In advertising, reason informs, but emotion persuades.” Let us see some of the major brands’ slogans in that era. Volkswagen (1969) said “It’s ugly, but it gets you there.” Johnnie Walker (1968), one of the major brand in production of whisky came up with “Just smooth, very

10

MarkMantra TradeWinds 2015 smooth,” whereas another whisky manufacturer

modern marketing techniques. How can one forget

brand named Pinch (1968) said “An inch of Pinch,

the “Think Small” campaign by Volkswagen? The

Please.” Kellogg’s corn flakes (1965) had one of the

campaign was featured for its car, the Beetle

most connecting slogans ever, which said, “The

(Exhibit 2).

happiest people you meet in the morning get their sunshine out of a box. And the box is Kellogg's.” It was necessary for companies to build an emotional connect with their consumers to win over their trust and ensure they refrain from purchasing

competitors’ products. Gradually companies like Coca-Cola, Unilever, PepsiCo, General Mills, and Proctor & Gamble made a place for themselves in the minds of the consumers through aggressive branding.

When every other car manufacturing company started producing and marketing large cars, Volkswagen came with its small size car Beetle and marketed it as “Think Small”. It even came up with a witty statement, “It makes your house look bigger”, which caught the attention of one and all

(Exhibit 1).1960s, the decade of “creative revolution”, saw traditional ways of advertising paving the way for innovative methods of engraving the face value of brands into the minds of the consumers. The decade experienced many social and cultural changes that led to erudition, modernization and the growth of youth culture. The period witnessed aggressive marketing campaigns by several

companies that actually laid the foundation of 11

MarkMantra TradeWinds 2015 The campaign was ranked as the best advertising

customer is exposed to thousands of brand mes-

campaign of the 20th century by Ad Age.

sages daily, thus making it a cut-throat competi-

In the 1980s brand management systems witnessed several ups and downs. Johnson & Johnson’s Tylenol crisis put the brand’s image at stake.

However, J&J successfully rebranded themselves and gained the trust of the consumers in a short time. This is a significant event in the history of branding. There were allegations on McDonald’s too and it was seen as an unhealthy and a detri-

tion for companies to make their brands stand out.

With the advent of digital media, marketers are trying to keep their audiences engaged and delighted through compelling brand experiences.

Customers today are more informed and selective than ever. Hence, the need of the hour is not just brand building and promotion, but to bring one’s

brand to life.

mental fast food restaurant. This forced them to redesign themselves with the usage of greens and

Sanchari Majumdar

yellows in their ads to position them as a part of

&

healthy lifestyle.

Tirth Jani

Today, a decade into the 21st century, marketing

PGDM 2014-16

activities have molded to accommodate changes in

TAPMI

consumer behaviors over the ages as well as improvements in business technologies. An average

Lights Camera &

Rewind!!

12

MarkMantra TradeWinds 2015

Rendezvous with Dr Saikat Banerjee Q. Nestle has seen ups and downs, where do you

switch to other options. I think Indian consumers

see Maggi now?

are still hoping for some positive news about Mag-

In my opinion consumers still have a very soft corner for Maggi. Consumers are hoping for Maggi to

gi as both Maggi and Nestle have a long positive association with Indian consumers.

make a comeback and emerge clean from this con-

Q. When Indian brands desire to enter foreign

troversy because as you know the controversy has

markets, how do they position themselves?

different dimensions. Consumers are getting different news from different ends. Media report is also not consistent. We as consumers are in dilemma and become skeptical about the claim since the brand is very close to our heart. In addition, many other noodles brands are still doing roaring business in the market. The challenge for Nestle is to clear Maggi as quickly as possible to get the ground back. If the ban continues, it may be detrimental for noodles market as a whole as consumers may stop buying noodles slowly and may

Depends on which route they are following. Going from the South East Asian route should not be a

problem as there is no perception issue as such. In developed market, the major problem is low trust on Indian brands. If brands are planning to venture in a developed country they may fall into ‘Asian Brand: inferior quality’ perception trap. To the developed world, our service sector is somehow well known. Our intellectual capital is getting accepted. However, a major portion is still offering

low end jobs where the price you quote is surpas13

MarkMantra TradeWinds 2015 sing the brand. To handle this negative perception,

a result, you need to have more weapons in your

first we have to develop brand ‘India’ as a whole.

arsenal. In case of Basmati rice, Indian Govt en-

As part of nation branding of India, positive brand

sures ‘Geographical Indication’ to protect produc-

association need to be developed about India and

ers. You have to protect your trademarks also. In

any brand from Indian terrain may piggyback on it.

addition, you need to attach intangibles like val-

So, need of the hour is to make India as a brand.

ues, association and promises around your brand.

‘Make Brand India’ will automatically lead to success of the philosophy called ‘Make in India’, ‘Made in India’, ‘Made for India’ and so on.

If we take the example of branded sugar, what are my expectations from that Brand? Quality? Purity?

Hygiene? and so on . Then what next? What type

of intangibles to make it less vulnerable to compe-

Q. Commodities like basmati and sugar, how is the

tition? These are the issues that a brand marketer

branding done?

should explore. Like Tata Chemicals tried to mix

Commodity branding is a very old phenomenon.

They are of two types: for domestic markets and for international markets. Branding means identification is clear, differentiation is clear and proposi-

salt with ‘Desh ka Apna’ sentiment. ITC is trying to play with the brand name of dal, rice etc. However, we are still waiting for some serious branding activities in commodities like sugar, rice, dal etc.

tion is well defined. We have to create an aura

Q. We have heard that P&G is going to divest its

around the brand through investment in brand

beauty products section, so we want to ask why

building. Whenever you buy a brand, first we set

do big brands want to divest entire divisions

some expectations from the brand and during our

while making profits?

association with the brand we simply match the same with our brand experience. When your experience is better than your expectation then you are a delighted consumer. We expect that experience should be better than expectation, If not better

then at least at par to make you a satisfied consumer. Suppose you are taking rice and keeping it in an attractive package, giving it a name and a catchy tagline; basically you are proposing some sort of expectation from the brand. But the challenge is that your competitors are also doing the same. In international market, task is stiffer as you are facing cross-border competition. So, your task

is to prove your brand ‘the best’ among equals. As

First of all there might be many internal and external reasons. From internal part, it sometimes happen that you get into a business sensing growth opportunity and later realize that either the vertical is not gelling with your core competency or you don’t have skill to manage the type of business.

External reasons might be competition, lukewarm response from consumers, market turbulence, demotivating category growth etc. On a positive note, sometimes, it is part of your strategy. You launch something and once it gets bigger, you divest it and earn handful to explore other avenues, it is not really negative, and it’s a strategy. So, it is a part of your plan and you are proactive in your

14

MarkMantra TradeWinds 2015 approach, you may gain. In other cases, divest-

easy to create perception and that may hook your

ment may be a proposition where you are trying to

customers.

minimize the current loss for a better balance sheet. For a company, it shouldn’t become a compulsion to divest.

Q. The brand Chings is an Indian brand but it positioned itself as a Chinese brand. So what is the rationale behind such kind of branding?

Q. What is the scope of brand consulting in present market scenario?

Brand consulting is a serious and mature thing.

Brand consulting means that you are out of your functional domain and you should have knowledge about different functional areas of management.

The trend is very common. Marketers try to piggy-

Normally you specialize in marketing but as brand

back on country of origin perception. Marketers

consultant you should have exposure to other re-

often pick brand names, packaging in line of com-

lated disciplines. Two years of MBA is not sufficient

mon perception of the consumers. As we perceive

to have knowledge of brand consulting as you do a

luxury with Italian names, fragrance with French

2 credit elective course on brand management. It

connection etc, many brands follow the same

takes time to become a brand consultant as brand-

route to play with your perception. Idea is to cre-

ing world is vast and dynamic. You should start as

ate a positive brand image and ensure a quick ac-

an Assistant Brand Manager nurturing one brand

ceptance. If you go by research findings, very few

of your own and slowly understand the dynamic

of us really go through whatever there is on labels.

world called brand management. You should expe-

Majority of us normally look through MRP, date of

rience brand planning, launch, communication,

manufacturing and date of expiry; for food prod-

equity plan, value understanding, big data etc. This

ucts, may be glancing through ingredients quickly.

will slowly make you mature to be custodian of a

We develop our perception based on brand ele-

bouquet of brands. Flip side is that one may be a

ments and marketing communication. For Chings

good brand manager but every brand manager

also, It’s their strategy because popular perception

can’t be a brand consultant because you should

is that noodles is originated from China. As Chings

have inclination to understand different categories

sound Chinese, it indicates a quick Chinese connec-

also. So, be an avid reader, develop good data

tion and that doubly ensure authenticity of the

crunching skills, keep stimulating your creative side

brand. Another such example is Da Milano Italia

and be analytical. Welcome to the world of Brand

leather products. Being an Indian brand, they

Consultancy. Good wishes from my side.

picked Italian name to leverage the same perception and signaling premiumness of the brand. Funny part with branding is that until you use the brand, you cannot develop a feeling about that brand but with such kind of brand naming, it is 15

MarkMantra TradeWinds 2015

Introduction

abroad can be proactive whereby a firm has higher

T

profit & growth goals, technology competence, he famous French Philosopher Michel de Montagne once remarked that marriage is “a market which has nothing free but the

entrance�. Indeed, in today’s world, as more and more organizations are extending their presence beyond borders, they need to be careful in the

16

need for economies of scale by venturing into foreign markets where they see demand for their products. It can also be reactive as in, when there is considerable competitive pressure in the domestic market. Once the decision to venture out is made selection of target market and correspond-

mode and manner of entry into a

ing entry mode needs to be decided where envi-

new market for a sustainable benefit.

ronmental knowledge about target market espe-

The

cially cultural sensitiveness is most crucial. E.g. Tea

motivation

for

movement

MarkMantra TradeWinds 2015 is the standard drink of Chinese dinner while low

Licensing

alcohol content beer is common for the Swedish dinner while drinking beer with food is a strange thing for the French people. In Japan “Quality” means ‘perfection’; it is ‘according to standard’ in Germany; ‘luxury’ in France; ‘it works’ in US.

Licensing is a business arrangement which involves allowing another company to use patents, trademarks, copyrights, designs, and other intellectual property in exchange for a percentage of revenue or a fee. For companies having a distinctive and

Here in this article we will see examples of how

legally protected asset this is the desired mode of

some of the big MNC’s today have successfully

entering a foreign market and generating income,

ventured into new markets while several others

as the efforts involved in sales & distribution be-

have failed miserably. The entry modes can be

comes the responsibility of the licensee. Licenses

broadly classified into the following types:

are usually taken up by well established businesses

Export

and terms of 16-20 years are common. This method is common in case of pharmaceutical compa-

Exporting is the most traditional and well estab-

nies whose innovative molecules come under pa-

lished form of operating markets wherein goods

tent protection. One of the more notable examples

produced in one country are transferred cross bor-

is Disney which earns billions in revenue by licens-

der and sold in the foreign market. This method

ing its characters like Mickey Mouse, Donald Duck,

requires least amount of investment and opera-

Batman among others to manufacturers and mar-

tional indulgence and hence is the least risky op-

keters in categories such as toys and apparel even

tion. A firm can export directly or indirectly

in its domestic market. This gives Disney the luxury

through an intermediary depending upon its

to focus its own efforts on its core competencies of

knowledge of foreign market, logistic capabilities,

media production and distribution. Mattel, Lego,

volume & frequency of trade. Indirect export is

Hot Wheels, Under Armour, Mad Engine are some

particularly suitable for companies with little inter-

of the licensing partners Disney has. Even Kellogg’s

national experience, since almost all international

has paired up with Disney to produce food prod-

operating functions are borne by the agent, includ-

ucts, while Johnson & Johnson is working on

ing the costly and time-consuming requirements

health care and other products. It has many licens-

such as bills-of-lading, customs clearance, and in-

ing arrangements in China which allow its charac-

voice and collection. The intermediate agencies

ters to adorn apparel or toys suited to local taste in

have their own expertise on a type of good or mar-

terms of color, styling, or materials. Disney Brand

ket. Prominent examples of some notable export

generated a record $40.9 billion

agencies from India are Jyoti Trading Corporation,

from licensed merchandize in 2013.

Bhabha Exports, NKD Logistics Private Ltd etc

17

MarkMantra TradeWinds 2015

Joint Venture

dia. Saatchi & Saatchi, Dare and Iris put together

its campaign. The other constituent of the compaJoint ventures are defined as an enterprise in which two or more than two investors share control and ownership over operation and rights to property.

Joint

ventures

are

a

more

all-

encompassing form of participation than either

ny's campaign was a viral marketing campaign known as "spark something." In this endeavor the company launched an exciting interactive piece of activity which enabled consumers to pump up space hoppers using Twitter.

licensing or exporting.

Anyone on Twitter or on the site could tweet Joint ventures make it easier to share risk and

combine the local comprehensive knowledge with a foreign partner with expertise in process or technology. It also provides joint financial strength. But in case of a JV partners do not have full control of management and it might be impossible to recov-

#pumpt and see a hopper being inflated. At the same time Sony Ericsson were asking customers to tell them what they would like to do with the space hoppers, the best proposal received was made real, filmed and posted online. This was one of the most unique advertisement campaigns run

er capital if need be. If the partners can carefully map out in advance what they expect to achieve and how, then many hurdles can be overcome.

Sony-Ericsson is one of the most famous joint ventures in recent history. It was between the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. The most vital reason behind this venture was to combine Ericsson's technological leadership with Sony's

by the firm.

consumer electronics expertise in the communica-

tions sector.

Franchising

The company employed a "liquid identity" logo. It

Franchising can be termed as an arrangement in

embraced the "make.believe" tagline in the year

which one party (the franchiser) allows another

2009. As part of its rebranding effort, the company

party (the franchisee) the authority to use its trade

positioned its logo in seven color variations.

-name or trademark as well as some business sys-

The company's aims were to attract consumer emotions and promote

itself more effectively on digital me18

tems and processes, to manufacture and market a service or good according to certain agreed upon specifications. Franchising is a good way to start overseas operations. It opens the door to low risk

MarkMantra TradeWinds 2015 business relationships as the capital does not get

restaurant sales and promote the system’s image.

tied up in remote operations and there remains

Keeping the price sensitive Indian market in mind

possibilities to buy into existing partner or provi-

Subway launched branded affordability campaign

sions to take royalties in store. However, the big-

with its Everyday Value Program in 2010 whereby

gest downside of franchising is that the partner

menus were offered @50rs. In 2013, McCann

garners know-how of the business and so franchis-

Worldgroup created the TVC “Throw your treats at

ing is mostly a short term arrangement.

Subway” for Subway’s newly launched egg & Mayo

Some of the biggest names using franchising model are Starbucks, Subway and Pizza Hut. Ingenious marketing and robust brand management have permitted these firms to make their foodstuffs available ubiquitously. The Subway and Pizza Hut franchisee are chief examples of the security afforded by a well-known brand while launching own franchise business.

The lower capital costs required for franchisees are

sandwich at a price of Rs 50.The commercial focused on the affordability of the sandwich and

urged people to settle all their treats at Subway.

Local flavors were added to the national menu like Tandoori Chicken Sub and Achari Chicken Sub to cater to local taste. Such strategies have helped Subway grow tremendously in India from its inception in 2001 to 500+ stores in 2015.

Wholly owned Subsidiary

one of the most important aspects of the mar-

A wholly owned subsidiary in foreign country is

keting strategy of Subway. The unique

when the parent company has 100% controlling

brand equity of lower levels of fat content in the food products offered by Subway is promoted by advertising the weight loss of its customers. Health equity of the brand was given an impetus with a national promotion featuring a range of low fat (97% fat free) subs. It also developed high levels of

consumer attraction to the delicacies offered by Subway. Moreover, the franchisees are trained to provide excellent customer service which has been advertised extensively.

stake. It can either be through Greenfield investment or through acquisitions. It involves the greatest commitment in capital and managerial effort.

The ability to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing but it possesses maximum risk.

In 1994, after India had opened its economy, the US giant Kellogg’s decided to enter into the market as a wholly owned subsidiary. The twin reason of increasing domestic competition and stagnating demand at home as well as the massive opportuni-

Subway’s unique “Franchisee Advertising Fund

ty in the untapped Indian market encouraged Kel-

Trust” or SFAFT governs its advertising campaigns.

logg’s to invest around 30 million

SFAFT manages funds contributed by SUBWAY

USD in launching its flagship brand,

franchisees. It was established to create advertis-

Corn Flakes. The Indian Consumer

ing and marketing plans that are designed to grow 19

MarkMantra TradeWinds 2015 was habituated in traditional tradition breakfast

changing the eating habit of the natives which

composed of paranthas, idli-sambar, poha, milk

could not be done overnight. Such small steps pro-

etc. varying from region to region. Concept of

vided them with a strong foundation and today

cornflakes was novel and hence it was a mammoth

Kellogg’s is the market leader with 60% market

task for Kellogg’s to generate a paradigm shift in

share in the 700cr Indian organized breakfast cere-

the breakfast behavior. They promoted their prod-

al market.

Conclusion The choice of entry mode in a market by a firm depends on several factors including its risk appetite, controlling competencies, entry barriers, economy of operation etc. As we have seen from various examples that the key to successful operation in uct as healthy food and in their advertisement campaigns hinted the traditional food as unhealthy and not nutritious. This hurt the sentiments of homemakers who were accustomed to the hearty and full traditional breakfast and they psychologically rejected the concept of Cornflakes. Also, the Indians drank hot milk which made the crispy cornflakes soggy. The pricing was also on the higher side. It was much later in 1996 that the company repositioned itself as fun-filled nutritious product, resorted to competitive pricing, attracted schools and housewives through free sample distribution.

foreign country is adaptation to local environmental factors. The Uppsala model, developed by a set of notable Nordic researchers, puts forward the theory that companies normally start their expansion in a psychic nearby market. There, they have enhanced knowledge of the market and more control of resources, thereafter gradually when the companies become more experienced and acquire better resources, they expand to the more distance market, where distance is a combination of cultural, geographical, political and language factors.

In 1997 they organized “Kellogg’s Breakfast Week”, a community-oriented initiative to generate

Dwaipayan

awareness about the importance of breakfast.

“Jaago jaise bhi, lo Kellogg’s hi” TVC, “Iron Shakti”

Mukherjee

TVC, “Special-K” TVC were hits. Kellogg’s recog-

&

nized that in order to succeed in India they would have to adapt to local conditions

20

Atish Mukherjee

both in their products and promo-

MBA(IB)2014-16

tional campaigns. It was a matter of

IIFT

MarkMantra TradeWinds 2015

B

e it World Wars or Recession: a time of

This kind of an economic slowdown is a very chal-

crisis has always been challenging for the

lenging and crucial time for companies to retain

marketers. When a country or region

their customer base. By carefully studying the envi-

goes through a rapid economic downturn, there is

ronment and customer requirements, companies

a significant change in consumer spending power,

can adapt their marketing strategies to meet mar-

buying patterns and demand, for which well-

ket place challenges and turn them into opportuni-

crafted and planned marketing strategies are re-

ties.

quired. Historically, the Great Recession of 2008 had led to reduced demand, immense pressure on

Success lies in adapting

suppliers to reduce prices and decreased spending

The most profitable companies in a recession are

power throughout the world.

typically those that adapt their marketing strategies in order to retain existing customers and win

new ones, and be profitable at the same time. As Harvard Business School Professor John Quelch recently stated, “Successful companies do not abandon their marketing strategies in a recession; they adapt them.� (Harvard Business School Working Knowledge, 3rd March 2008). This is because there is no unique marketing

strategy for any economical

21

MarkMantra TradeWinds 2015 condition, but it is how a company can adapt/ cus-

have been severely affected by recession histori-

tomize the existing one. Ensuring implementation

cally.

becomes challenging in crisis. There are cases when well planned

What have these 2% firms done right to survive?

strategies are not implemented in the desired way due to pressure created by economic turmoil. Thus

This is the key question that comes to mind: How

it is really important to ensure that a planned

did these firms adapt to the pressure and turmoil?

strategy is executed effectively, leading to signifi-

What were their marketing strategies? What did

cant return on investment. The most common re-

they change? How did they adapt?

actions at such times are:

Well, the answers lie in the most fundamental con-

Not proactive: Some firms are not reactive and

cept of marketing: The 4Ps Model or the Marketing

do not realize that there is a downturn lingering

Mix. It is the marketing mix that these companies

on. And till the time they realize it, it gets too late.

customized in order to fit in the existing situation.

There are other strategies as well, that have been

Mass layoffs: Slashing odd manpower (human

followed, but the marketing mix theory is the most

resources) without realizing their value.

relevant, which can be substantiated with numer-

Cost cutting: Companies usually cut costs on promotion, sales etc, in a panic situation Only ~2% firms globally have not been affected by pressures of recession

ous case examples if we look back in time.

The 4Ps revolution In times of economic turmoil, going down to the basics becomes too important. It is the foundation for survival. And it is the fittest that survives. Companies have customized/ adapted their marketing mix in order to remain profitable, when the times have been tough.

Let us take the case example of McDonald’s, and understand how this helped them become “recession resistant’.

Results from an online survey conducted in 2009, after the Great Recession (sample size~300 global MNCs)

The First P: Product The products were customized in order to meet the consumer demands in a better way. The com-

More than half the firms 22

pany removed its double cheeseburger from its US

MarkMantra TradeWinds 2015 Dollar Menu, to replace it with a double burger

it began selling latte and espresso coffees and

with one slice of cheese in response to the in-

offering Internet access and rental iPods. This formula allows franchisees to reinvest in the brand and stores, which drives more sales. Brand loyalty keeps customers coming back, and expanded crease in dairy prices. A plethora of healthier op-

product lines and physical upgrades to stores bring

tions were introduced as “McHealthy” strategy, as

new customers.

the consumers wanted quality diet and value for money.

The Second P: Price

The Fourth P: Promotion McDonald’s continued their aggressive marketing.

They tried their best to retain their loyal customers

Providing customers with products they wanted at

through quality food, convenient stores and cus-

prices they can afford, even during hard times,

tomer service. They not only has refrained from

contributed significantly to the stock market per-

laying off workers, but announced plans to enlarge

formance and financial results of the company.

its worldwide work force by 6 percent. This incul-

They introduced an affordable range of coffee

cated confidence in people. The McDonalds case is

shakes- McCafe, which was a cheaper alternative

a classic example of how a company adapted its

for Starbucks coffee.

marketing mix in order to be profitable and retain

The Third P: Place McDonald’s upgraded their outlets, in order to reflect positivity during tough times. It polished its

their customers, and at the same time winning new clientele. The downturn can be a blessing in disguise, if the right strategies are created and executed.

image by adding upscale touches such as leather sofas and wall paintings to its European stores To draw younger and more sophisticated clientele, 23

MarkMantra TradeWinds 2015

Value based marketing: The future of ver and Hyundai have always been a step ahead.

marketing in crisis

These players think ahead of the crisis situation, and spend efforts in forging and cementing rela-

A value marketing strategy is one which will sow the seeds to success leading to prosperity after the recession. This is in stark contrast to the least popu-

tionships with customers and marketing & product innovation. This way they can be more competitive once the situation is normalized.

lar low price and low cost strategies, which are likely to position the firm as non-competitive, once recession ends. A survey after the

Great Recession showed that the companies have now been focusing on value-based marketing.

Common strategies that have been employed in past and during recession (Results from a B2B marketing survey conducted during the Great Recession)

Hyundai’s Assurance Program: A win -win situation for consumers Hyundai’s Assurance Program was initiated during

From Recession to

economic slowdown in US in 2008. It promoted as-

Recovery

surance to car buyers that they could return the cars if they got laid off, or in life-altering circum-

Forward thinkers like Unile- stances. It was the first vehicle return program of

24

MarkMantra TradeWinds 2015 its kind. In the words of Joel Ewanick, VP-marketing

satisfaction and loyalty are the second and third

at Hyundai - "We're saying, 'Things are better, but

most popular strategies in recession. Alongside val-

not great -- so we're going to hold onto this

ue marketing, they can be considered customer-

[Assurance program] until it's over”.

focused strategies, for they all seek to better meet

These kind of strategies pave way for lasting relationships with the consumers during and after crisis situations.

Planning for a post-recession future It's been said over and over: There's no time like

the needs of customers and extract more value from them.

Thus, shifting thinking to long term by value based marketing has become one of the key strategies in times of economic slowdown

Conclusion: Stay Hungry, Stay Foolish Companies should keep on exploring new and improved strategies because- “one size does not fit all”. An effective marketing strategy during crisis is the one where-

recession, when competitors are retreating, to



Customer requirements are met effectively



Quality is not compromised



Core proposition is supported and sustained-

ramp up innovation and marketing to grab share.

This was the strategy that Unilever followed by de-

Loyal customers are satisfied

veloping innovative products even during the Great Recession. Unilever ramped up support behind



Firm stays competitive after crisis

products like Dove hair-minimizing deodorant. The company also invested in a host of new innovation approaches, such as a global project for Axe in which the consulting firm Face Co-Creation helped assemble a group of 16 target consumers to help vet a new scent and develop the marketing plan

Kunal Gupta MBA(IB) 2015-17 IIFT

behind it. The plan was to develop products and market to position Unilever for a post-recession future.

Market/customer segmentation and customer

25

MarkMantra TradeWinds 2015

Name: Akshay Kumar

Gupta Company: Raymond

I

got an opportunity to intern

market such as store operations, in-

with Raymond Limited as a part

ventory management, promotional

of the Summer Internship pro-

marketing campaigns, sales tech-

cess at IIFT. I interned with the Retail

niques etc. Though my projects were

team of the Sales and Marketing de-

linked to ops and merchandising

partment under the lifestyle business

teams, I was able to interact with a

there. I worked on two live projects in

lot of other teams who are actively

close cooperation with the Opera-

working in the field of E-commerce,

tions and Merchandising teams of

M-commerce, Omni channel retail,

Raymond.

Digital marketing, Product launch,

The work environment at Raymond is extremely dynamic. The exposure to different facets of a business is immense. During the 8 weeks stint, I could gain an understanding of a lot of things that happen behind the scenes before a product reaches the

26

Campaign management etc. The work environment at Raymond promotes inter-team interaction, something I had not seen at places I had worked before. The thing that I liked the most about the company was that it gave the interns an opportunity to work on

MarkMantra TradeWinds 2015

projects which are really contempo-

which will prove useful to improve

rary and have a lot of bearing on the

upon existing store operations across

current goals and objectives of the

the retail network of Raymond. In the

company.

other part of the project, I worked on

The internship turned out to be a great learning experience for me. I

have had prior work experience in

an analysis on the POS data and came up with recommendations related to cross selling of products.

small size companies before joining

For those who aspire for a career in

IIFT. Raymond is the first of the large

S&M, Raymond is an ideal place to

size company exposure I got. The

work for! IIFT’s curriculum is exhaus-

team I worked with, gave me a lot of

tive enough to cover the prerequisites

freedom in whatever I wanted to do.

for joining the company. I would sug-

This really helped me to come up with

gest to focus on Marketing domain

creative solutions to the problems be-

specific subjects and develop an in

ing faced by my team. My experience

depth understanding of concepts to

in the field of data analytics came in

become ready for any stint in the do-

extremely handy. I devised a BI tool

main.

Kolkata Campus: Foundation Day

Centre Head Dr. K Rangarajan with Chief Guest Shri Basudev Banerjee- Additional Chief Secretary, Home Department, Govt. of West Bengal who graced us with his presence on the occasion

27

MarkMantra TradeWinds 2015

P

ursuing your Summer Intern-

from other B-schools during those

ship in Sales isn’t an easy

two days thanks to Vodafone’s exer-

task – at least not in Voda-

cises and fun activities. I had my initial

fone! One finds herself in the midst of

bouts of nervousness when I was allo-

project charters, surveys, analysis

cated a project in the Bihar circle.

tools, meetings and reviews. I look

When I met my mentor, the Assistant

back at the two months’ exhilarating

Vice President – Sales at the circle, I

frenzy called “Summers” as an enrich-

knew I was in for serious business. As

ing experience in a familiar yet unfa-

with everyone else at Vodafone, he

miliar atmosphere. I call it familiar

was always ‘happy to help’; however,

because my “Territory” (like a typical

he never compromised on quality or

salesperson!) was near my home; and

discipline.

also unfamiliar as I wasn’t acquainted with the business dynamics of the ever changing telecom industry.

28

The project assigned to me was about distribution strategy and information gathering about the competition. I

The journey started with the two day

had to design questionnaires and in-

induction in Mumbai where I learnt

terview customers, retailers and dis-

the basics of the industry and the or-

tributors through field visits in the

ganization. I made quite a few friends

market. I visited a total of 200+

MarkMantra TradeWinds 2015

shops all over Dhanbad including ur-

My take away from the internship was

ban and semi-urban areas. The task

the application of marketing and con-

required a lot of patience and perse-

sumer behaviour concepts in real life

verance- at times one faces fatigue

scenarios. Also, I learnt how to inter-

after asking the same set of questions

act with people with different back-

to over a hundred people! Further-

grounds, education and upbringing. I

more, it required a lot of local travel-

would suggest my readers of the jun-

ling in the scorching heat of the coal

ior batch to be open minded and take

capital. I recall my disappointment at

up the challenging tasks offered by

the peace I observed in Wasseypur

Sales. Be patient and enjoy the travel-

(darn, these crazy Bollywood movies!)

ling involved; and yes, being talkative always helps!

Kolkata Campus: Foundation Day

29

MarkMantra TradeWinds 2015

I

n 1895, John Deere started a quarterly pub-

forward that what might be useful today might not

lished magazine by the name of “The Furrow”

be tomorrow. The advent of time will bring new

for educating the American farmers on how

advancements that will point the tipping scale in

they can better manage their crops. He never intended to use the journal for promoting the brand.

But a century later, this magazine is now one of the leading agricultural journals promoting the

the favor of future.

Vintage Advertisements: The Legacy

brand of John Deere GmbH & Company and is published in fourteen languages with mass readership around the world. This is the effect of time which has changed the course of this journal.

Whether it is the ‘Doodh ki safedi Nirma se aaye’ or ‘Vico Turmeric Ayurvedic cream’, each of these products has created an everlasting impact on our minds and is in fact an

Going off with that notion, it would be fair to put

epitome of how well a product can be positioned in the mind of the custom-

er and the consumers to ensure top of the mind recall.

Facing the constraints of restricted marketing channels (print and electronic media), the marketing minds had to formulate strategies to grasp the attention of the consumer upon a single view.

Since it was a single page framework, all the essential characteristics of the product had to be dis30

MarkMantra TradeWinds 2015 played within the boundaries of the exhibit to de-

Urbanization has taken place at a very rapid rate in

fine the uniqueness of the product. This made

India and this has resulted in the genesis of a new

these single page advertisement’s text dense and

breed of population called ‘urbanites’.

processing of all the information- a strenuous task.

The working urbanites depend more on fast and

But as time passed, a lot of different factors contributed to the opening of the market which led to an increase in competition which further lead to developments in the field of marketing strategies and marketing platforms. Some of those factors contributing towards change in consumer

ready-to-serve food with preferences towards

trends are:

bulk purchases from hyper stores rather than fre-

1. Liberalization of the Indian Economy

quent visits to the neighborhood “Mom n Pop” stores.

This lifestyle has led to the creation of new markets like those of frozen and packaged goods and quick-and-easy-to-make foods.

The change in the policy framework of 1991

opened up the Indian market for private and foreign investments. This made the economy much more market oriented and a lot of different players flocked towards it. Time was witness to such never seen before levels of competition which compelled the marketers to look out for more effective routes for information dissemination.

2. Rapid Urbanization

3. Increase in Personal Income With the growing economy, the per capita income has risen significantly which has paved way for an increase in the disposable income of a large section of the society.

31

MarkMantra TradeWinds 2015 This increase has given consumers a lot of op-

tors has been aided by the penetration of credit

tions in terms of the wide range of products that

cards in India. The number of transactions has

come within their purchasing power. This is the reason that consumption of luxury goods and consumer durables has increased to such an extent that some of the products of this segment like watches and cellphones etc. have shifted to the FMCG category.

4. Shift in Areas of Expenditure

increased from about 80 million in 2004 to about 260 million in 2009. The data for the value of those transactions for the same period stands at almost INR 250 billion in 2004 and INR 600 billion in 2009.

The Youngistan’s liking for plastic money has also made their purchasing power strong and out There has been a shift in the spending pattern of

of-reach consumables more accessible to the tar-

the consumers. This can be evidenced on one hand - with the falling shares of Food, Beverages and Tobacco Industries (from 40% in 2005 to 22.3% in 2020) , whereas on the other- a rise seen in the segments of Miscellaneous Goods

and Services (from 8.9% to 25.1%) along with Recreation, Education and Services (from 3% to 4.2%). This shows that our consumer’s interest in luxury items has increased due to the increased disposable income and has resulted in greater circulation of money in the market.

5. Increase in Credit Card usage The growth of various organized sec-

32

get audience. The increase has been a steep one till 2009 and this curve is expected to maintain its

MarkMantra TradeWinds 2015 direction in the time to come.

Change in time: Increase in exposure to the Internet With the advent of the 21st century, there has been a tremendous upsurge in the use of the World Wide Web. The number of people using the Internet has increased to around 3 billion in 2014.

If the data of top ten countries in terms of internet users is analyzed then the year-on-year growth of the users ranges from 3% to 16%.

With such a large number of people using the Internet around the globe, this platform has transpired into a new segment for which different marketing strategies have to be devised.

In India alone, the number of people using the

internet has increased from about 5.5 million in 2000 to about 243 million in 2014. This number is predicted to reach half a billion by 2018.

The country’s share is about 8.33% in terms of world Internet users and thus presents itself as a huge market. This has been achieved by wide spread penetration of the Internet into the rural areas and digitizing policies of the government.

E-commerce and Social Networking: The Pandora’s Box The birth of zillions of e-commerce startups has given the consumers a lot of choices to choose from and when a consumer is empowered to choose from such a wide range of products that also falls within the desired price range, then

This has helped marketers go leaps and bound to

brand loyalty takes a hit. Moreover the heavy dis-

promote their products across borders with

counts that are offered, allow the consumers to

greater ease and has considerably changed the

upgrade to the price range from which they earlier shied away, by spending a little extra money.

With the high penetration of the Internet, using the online platform provides greater coverage at a very considerable drop in the cost.

Marketers have found a very proficient tool that promotes in the form of social media platforms.

The number of social media users was 86.7 million in 2013 and it is anticipated to increase to around 225 million in 2018.

The consumer engagement through social media helps in positioning the marketing scenarios.

product in the mind of the consumer

33

MarkMantra TradeWinds 2015 by repetitive and specific targeting over a period of

and more informed generation of consumers have

time. Engagement activities include usage of vari-

evolved who possess the power to shift products

ous interactive channels such as online ads, videos,

from one segment to another or create a new seg-

mobile apps, etc.

ment altogether. Therefore, catering to the needs of such a target audience requires intelligent and smart utilization of all the tools at one’s disposal

with maximum efficiency thereby rendering the earlier used ways and methods ineffective. Yes, inspiration on consumer engagement can be taken

Conclusion:

but presenting the same thoughts will vary considerably in those two time periods.

The effect that the vintage advertisements had on our minds can never be downplayed and marketing strategies kept in place were phenomenal in getting attention of the target audience in that time but it is important to understand that what is

Tanuj Maheshwari

constant is CHANGE. And with change in time,

MBA(IB) 2015-17

novel factors emerge that play an extremely crucial role in deciding the fate of the products.

This is the reason that because of

advancements in technology, a new 34

IIFT

MarkMantra TradeWinds 2015

“Marketing isn’t magic. There is a science to it.”

-DAN ZARRELLA, Social Media Scientist, HubSpot

Y

ou happily book your vacation ticket and when you log off your IRCTC account, a joyride automatically takes you to Ama-

zon.in to add to your happiness. In today's highly networked economy, building and strengthening relationships requires that you interact with customers via multiple channels. Developing and maintaining long-term customer relationships can

35

MarkMantra TradeWinds 2015 be the lifeline of a business.

Today, the customer expectations are driving multichannel integration. Customers are more varied and selective with their expenditures and are significantly less loyal to any one brand in particular.

Gone are those opportunistic days, when a physi-

pers, magazines and direct mail marketing through

postcards, brochures, letters, catalogs, and fliers were used to attract consumers through postal mail. One of the earliest and most well-known examples of it is the Sears Catalog, which was first mailed to consumers in 1888.

Broadcast marketing by dint of television and radio advertisements have been around since the 1900s and television advertising was quicker to adopt, with less than ten years between its inception and the first television commercial in 1941.

Traditional marketing campaigns often have the advantage of staying powerful. They can become iconic, and instantly familiar to millions round the globe. Some of the memorable campaigns of the 20th century, according to NBC have been -

cal store or a catalog could be relied upon to promote a business and reach out to customers.

Let’s take you out on a date with the by-gone era

McDonalds: “You deserve a break today”, Marlbor-

o's “Marlboro Man”, and the most revolutionary of all, Volkswagen’s “Think Small”.

Along with these extensive above-the-line channels of communication to catch the hungry fish in the net, the businesses are now focusing coequally on below-the-line channels of ‘business to consumer’ communication. Nowadays consumers have different cognitive learning styles, which where print marketing via newspa-

36

mean that brands need to communicate with them

MarkMantra TradeWinds 2015 through different ways- which means using multi-

with current, past and potential customers is E-

ple communication channels and disciplines. From

mail marketing. It increases brand awareness, re-

magazines and newspapers to e-mails and web-

inforces and strengthens Company-Consumer

linked kiosks (82% used), pop-ups to in-store smart

bond, announce sales, share latest company de-

TV’s, all have seen a mammoth change. To quote

velopments and lastly disburse articles, promotion-

Julian Saunders of the Joined-Up Company,

al material and whitepapers. Giant corporates or-

“Nowadays everything communicates, or tries to”.

ganize annual Tradeshows where they divulge eve-

The conventional classification of channels involved communication at personal and nonpersonal levels. But today, though the ends are the same, but the means have undergone stupendous

rything from newsletters to display working models of their key product. An intrinsic truth that can-

not be neglected today is that- Content is king and you don’t get the crown without winning content

changes. The increased pressure to maximize the shareholder’s value on businesses has driven continuous improvements in communication effectiveness as well as devising technically contemporary ways to reach out to the potential targets. With a free sign-up and result oriented cost incurred,

Google ads is one of the biggest facets of all marketing channels. It offers higher customer outreach, global advertising and a right target at right

marketing program. Thus the content we dissipate is as much important as the varied channels we communicate it through.

How can we forget our social media and the indispensable role it plays as one of the largest and most widely used mediums of present day marketing? From Twitter to LinkedIn and from Face-

book to Blogs, everyone from corporates to soleproprietors find it the most lucrative and viable option to strike a cupid at the target consumers time approach with a meagre starting budget of

heart. Directory sites like Thom-

1000 bucks a day. That means, of the 3.3 billion

asNet, MacRAE’s Blue Book and

users accessing Google search engine, your ad

GlobalSpec are an icing on the

could be seen by a significant number of people.

cake. Almost every business fea-

Another most cost effective and revenue gener-

tures a company video on its web-

ating channels being widely used today to connect 37

MarkMantra TradeWinds 2015 site as well as other video platforms like YouTube,

comes to some of the most widely used and exten-

Vimeo etc.

sively followed channels of business communica-

A relatively strategic concept which is being exten-

tion.

sively used by numerous businesses worldwide is

Today, most of the brands have come up with an

that of Search Engine Optimization (SEO) (29%

option of customized shopping where-in the cus-

used). All you need to do is feed Google, Yahoo et

tomers can search, match, virtually try and hence-

al with the most valuable keywords and phrases.

forth finalize a perfect fit for them. Another en-

Another approach known as Pay per Click (PPC)

trant into the et al market is the ‘gift card’, which is

also leverages industrial keyword research, im-

a convenient, portable, easy-to-use, rechargeable

proves on-site conversions and controls cost. What

card that comes with a life-time validity.

if you are in dire need of a house loan and an angel in disguise calls you to inform about their most borrower friendly loan scheme. Well, Telemar-

It is rightly said that You must be where your customers are. And they are everywhere. There’s no doubt that customers today have much more control over the buying process than marketers do.

Thanks to the proliferation of available channels, customers have more choices than ever when it comes to how they want to get information. Today there are more ways to reach customers – both in terms of number and variety of channels – than we could have imagined not so long ago. And as the number of channels continues to rise – and it will –

keting (17% used) is no less popular a tool when it

38

the need to embrace multichannel marketing will

MarkMantra TradeWinds 2015 become not only a good idea, but a critical one.

The road of marketing channels is not as smooth as it appears to us, sitting on a comfortable couch at our homes. Thanks to the plethora of channels and choices facing customers, delivering the right message to the right audience isn’t enough. Not today, most of the brands have only must your customers receive your message, but they also must be attentive, receptive and willing to act – regardless of the channel. Expecting customers to change channel or devise preferences is unrealistic. As a result, marketers must constantly develop

keting is more cost-effective, measurable and ter-

and coordinate highly orchestrated touch points

rific for brand development with a tremendous

and micro-campaigns that span multiple channels

potential for exposure, the time-honored mediums

fluidly, in a way that the customer finds meaning-

have proven to be effective, more impactful and

ful and trustworthy.

The right mix of traditional and contemporary mar-

Mohit Mahajan

keting, instead of the lone star act is the need of

&

the hour. By combining the two, you put the right form of communication in front of the right people

Ishan Gupta

and give them a reason to visit both your website

MBA(IB)2015-17

and your physical store. Both the strategies com-

IIFT

plement each other to meet the unique goals of today’s business houses. While the new-age mar-

Man of Steel or Man of Brands??

Man Of Steel Holds the record for maximum Product Placement 2013 39

MarkMantra TradeWinds 2015

Name: Ankur Suri Company: Reckitt Benckiser

P

roject – To enhance Go-To-

of orders) daily for the 1st week. The

Market capability of RB in

visits ensured that I learn about the

Delhi and 50 Lakh plus

intricacies of distribution channel &

towns in North India.

selling process at distributor level.

The project was centred on identifying

The next 3 weeks were dedicated to

gaps and opportunities in the current

market visits to interact with whole-

sales & distribution network of RB (All

salers & retailers, both large & small.

SKUs), benchmarking itself against its

During the stint I covered 300 stores

competitors. The territories for the

in and around Delhi. The visits not on-

same were Delhi, Lucknow and Kan-

ly helped me identify the gaps & op-

pur.

portunities in the S&D network but

The scope of project demanded diligent & extensive field work. It ensured that as an intern I am exposed to the challenges of the “World of Sales�. I was expected to reach Distributor Point before sales opening (to understand dispatch of goods) and be there before closing (to observe billing

40

also to collect data for benchmarking.

Surveys with wholesalers & retailer and interaction with them can provide some really useful information regarding the competitors as they know the tricks of the trade & are eye and ears of the company. It ensured that I learn the art off networking & execute the

MarkMantra TradeWinds 2015

humongous task of obtaining competi-

however it is meaningless if not

tor’s data successfully for efficient

viewed from right perspective. The

sales benchmarking.

meetings helped me to learn the art of

The other data points for the same was competitor’s sales force. I spent 2

looking the results from the right perspective and make it speak volumes.

weeks in gathering the same. This re-

It is essential to understand the objec-

quired diligent recordkeeping and a

tives of the project and the expected

knack to identify which stakeholder

deliverables. Timelines should be

can provide what type of information.

strictly adhered to as any glitches

Be it the Regional Sales Managers or

would be difficult to cover up. Spend

the front end Sales Representatives all

adequate time in brainstorming with

were potential sources of data; how-

your guide & mentor to ensure the

ever to get most relevant data was a

project is on track and correction if

challenging task and required asking

any can be made in time. Also ensure

of right set of questions at the right

giving them a weekly status report

time to the right stake holders.

regular reports regarding your pro-

Following weeks were spent in analysing the data which included brainstorming sessions with my Project Guide Sponsor and the sales team.

These sessions helped me to understand that though data analysis can be executed through excel crunching;

gress. Since a sales stint requires a lot of networking and travelling, adhering to timelines & dependence on performance of large number of external stakeholders; keeping oneself motivated till the end might be challeng-

ing. However never give up & give your best shot till the end!

Besides being one of India’s oldest FMCG Firm , Dabur has the Oldest Supply Chain In India

41

MarkMantra TradeWinds 2015

Name: Murtaza Ali Company: Flipkart

Before joining a B-School, some of you

of operations. I had the opportunity to

may

well-

work with various teams and wit-

established companies, some of you

nessed the conceptualization and im-

may have been associated with start-

plementation of ATL and BTL activities

ups and some of you may have joined

across India. I was also involved in the

straight from college. All of you may

branding of the program and could

be having various experiences at your

relate it to the concepts and frame-

end but I assure you, interning with

works taught at IIFT. It was more or

Flipkart is a game changer. Flipkart,

less the same steps (though custom-

true to its image, gives a unique expe-

ized) that were being followed and

rience to its employees at its work-

classrooms lessons helped me a lot in

place. The whole atmosphere is lively

that project.

have

worked

with

and vibrant. The culture is so open and accommodating that from the time you step into the office you are treated as a Flipster and no less.

how many hours you toil during work hours, you come out refreshed. Never will you feel tired after a good day’s

I was working in Retail – Marketplace

work. Flipkart gives an unmatchable

Division in Flipkart which involved

opportunity to work with

some part of marketing and some part

42

Working at Flipkart is fun. No matter

MarkMantra TradeWinds 2015

industry leaders sharing the same

general but should also be updated

work space. It promotes interaction

about various marketing and catalogu-

and every day you keep on learning

ing techniques used in E-commerce

from your managers.

industry. People eyeing for operations

Flipkart is a one of the best places to intern in, but getting selected is a herculean task. You will be tested with unconventional questions that will test your creativity and awareness.

You should not only be apprised about Flipkart and E-commerce sector in

profile should prepare well about various models already in place to provide

hassle free delivery experiences to customers. You should treat this information as a reference and should not limit your preparation to this. Wishing you all the best for summers!!

Success Mantras from E-commerce Gurus.

Read More..

43

MarkMantra TradeWinds 2015

About the Author

Amar Budati Business Analyst at ITC Infotech (2014 till present) Editor-in-Chief, Mark Mantra (2012-14)

I

Internet of Things oT or Internet of things is defined as an eco-

pact everything we do. It's a gigantic wave of new

system where devices interact with each

possibility that is destined to change the face of

other over the network. Devices include

technology as we know it.”

sensors, monitoring instruments as well as

The term “Internet of Things” was coined

the smart phones we use, TV’s, refrigerators; es-

by British entrepreneur Kevin Ashton almost a dec-

sentially every gadget that surrounds us today is a

ade and a half back in 1999, he feels that he should

potential candidate to be a part of this system.

have coined it as “Internet FOR Things” instead of

Do not take this to be just another fad on the hori-

what he eventually named it.

zon. Salesforce.com puts it very nicely “…it may

Marketing, in the last half a decade has seen a

sound like a business buzzword,

whole lot of disruption and IoT is another step in

but in reality, it’s a real techno-

the same direction. It will for one change the dy-

logical revolution that will im44

namics on a scale that has never been seen or

MarkMantra TradeWinds 2015 heard before. Just to give you the scale of IoT,

could be used for making decisions that aim to im-

Gartner says there would be 75 billion connected

prove the overall quality of life.

devices by 2020. Now that you’ve been exposed to

Think of digital marketing in the future, wherein devices start giving out tweets, posts on what is trending based on the current events in the surroundings. Engaging with customers at an even more personal level than ever before. Devices will be able to tell you when they need a refill, repair.

So here is a system that has gadgets which are learning all the while, becoming smart in the pro-

the scale of it, let’s get down to the mechanics of how marketing would be affected in reality.

cess; so much so that the advertisers will have a tugh task getting people to go ahead and make a purchase, as there are multile factors at work. Only

Localization of content is already a reality, thanks

when a product manages to satisfy all existential

to the location sharing facility on our phones. We

criteria would it be displayed to the customer on

now are used to getting offers, as we cross a coffee

his device, essentially what we are looking at is a

shop, QSR. Now imagine that you are out shopping

100% CTR.

with family and your phone vibrates with a message from your refrigerator to pick up some veggies as you have none back at home and you have guests coming over. How does this happen, of

That is both amazing as well as challenging to an advertiser’s ears now.

IoT: The future is yours ;)

course with the devices “talking” to each other as well as scanning our gadgets for information which

45

MarkMantra TradeWinds 2015

Because A Truce

ANMOL GARG SENIOR CLUB COORDINATOR BRANDWAGON KOLKATA

SHASHANK GARG JUNIOR CLUB COORDINATOR BRANDWAGON KOLKATA

Social Media Marketing

W

IS an invasion of privacy?

ith the advent of digital age, the world is changing fast and the marketing ways are changing with it. In the last decade we have seen the rise of two of the biggest marketing tools the world has ever seen namely social media and big data analytics. Social media provides the marketer a platform where they can interact with billions of customer and big data analytics tells them how to do it. However this nexus between social media and marketers raises a big question about the invasion of privacy of the customers. In the recent times we have seen numerous cases where the privacy of the customers was not only invaded; their personal

information was sold for a handsome profit.

In today’s world the producer has to realize that to promote their product and bump up their sales they

need to understand the buying behaviour of the customers and find out about their likes and habits. This 46

MarkMantra TradeWinds 2015

is not Amicable !

PIYUSH SOOD SENIOR CLUB COORDINATOR BRANDWAGON KOLKATA

ISHAN GUPTA JUNIOR CLUB COORDINATOR BRANDWAGON KOLKATA

Social Media Marketing

S

IS NOT an invasion of privacy?

ocial media is a digital space for interaction between people across all boundaries. They meet, discuss and exchange ideas over a wide range of topics in the form of group discussions, blogs, articles, images, videos, audio etc.

That means when you log into social media you do that to interact with the entire world. You accept its ‘Terms of Use’ and

willingly give up your privacy. You are very well aware that it’s a ‘public domain’ and not a ‘personal space’. You go to social media to share your thoughts, not to write a personal diary page. Whenever we post something on social media it gets added as a new virtual book in the public library we have created in the name of the Internet.

Advertising on social media involves advertisement through your own pages or blogs and targeted advertisement on users’ home page. This can be compared to traditional ways of marketing like pamphlets in Newspapers. Both social media and newspapers are sources 47

MarkMantra TradeWinds 2015 had led them on the ominous path where breaking your online privacy is no longer off limits. This in-

volves tracking people’s online activities and harvesting personal data and conversations from different social media platforms. Usually research companies harvest this data and later sell this compiled data to companies who in turn uses this data to design targeted marketing campaigns for their products.

There have been several cases in the recent past where companies have been alleged of serious online privacy violations.

In May 2011, a media research company named Nielson Co. was caught scraping every message off PatientsLikeMe’s online forums. A forum where in the delusion of safe and pri-

vate environment people talk about their emotional problems. Similarly , in probably the biggest and the most famous case of online privacy violation Facebook in 2012 experiment on about 700,000 of its users’ by manipulating their users’ news feeds to show them content that was either predominantly negative or positive and later analysing their emotional responses to their feed. In addition to this , Facebook keeps and stores all information pertaining to users such as IP (intellectual property), photos etc. that have been deleted by the users.

This information can be shared with marketers who bid the highest for it. It has been reported several

times about certain apps that leak information about their users to advertising and internet tracking companies, without the users having clue.

This blatant encroachment of your private profile is equivalent to a stranger going through your wardrobe without your permission to find out your personal preferences while promising better services and convenient shopping in the future.

Surveys conducted across the world have time-and-again showed that the consumer is worried about this breach of their online privacy. The TRUSTEE Consumer Confidence Index 2014 conducted in US showed that 90% of users in America are concerned about privacy in social media.

The proponents of social media claim that by its very nature, a social media platform is a public platform and one where users should have the weakest expectation of privacy however they forget that the even when we go to social media we choose who we share this information with. This is the basic right to freedom that every citizen of world should not be deprived of.

48

MarkMantra TradeWinds 2015 of information. Pamphlets in newspaper and advertisements on social media are targeted on a particular

section of people reading or searching for a type of information, for example, business news. If the former has never been considered as invasion of privacy, why should the latter be?

While advertising on social media in itself does not account for violation of privacy, conduct of marketers can lead company into lawsuits claiming invasion of users’ privacy. For example Public disclosure of private facts that involves posting embarrassing, privileged, or confidential information about another person on its social media page. The violation happens if a marketer uses his/her customer’s name for an advertisement but does not have their consent. The famous case of Lane Vs Facebook case where plaintiff Sean Lane bought a ring for his wife on Overstock.com , the purchase was broadcasted on his network of 700+ friends without his consent, showed what greater harm can be caused with breach of privacy.

Hence, marketers need to be wary as they walk on a very thin line when it comes to social media marketing.

Marketers of today have a lot to gain when it comes to marketing through social media. Social media not only provides them the reach to their target audience but is the most cost effective method to market their products. Be it the Durex Naked Box Challenge or Maybelline Baby Lips campaign, companies have tasted the sweet taste of success with an increase in crowdsourcing activities through social media. Looking from the viewpoint of the customer, getting customizable advertisements for themselves makes the process

of

search for information of products even simpler.

In todays’ tech-savvy generation’s time, where people stay connected through Social media for almost the whole time, potential of Social media marketing cannot be ignored. Concept itself does not involve any violations of Privacy but marketers need to restrict themselves while fighting to achieve their targets.

Social Media can be the most powerful tool any company can have to market their product in the coming days.

49

MarkMantra TradeWinds 2015

Name: Samarth Kothari Company: Britannia

I

50

knew that working in sales de-

not just the end consumer who

partment of an FMCG company

matters but the retailers, salesmen,

would never have been an easy

distributors also matter equally. Thus

task but landing up with a project per-

having understood the challenges that

taining to rural sales in Rajasthan in

lay ahead, I prepared a timeline for

the month of April came as a bit of

the 8 weeks and stuck to it (in most

surprise. My project revolved around

cases!). And then came the time of

creating a road map for the expansion

Strategy Formulation. One thing I

of the rural distribution network. My

learnt was that no matter how fanci-

first step was to understand all the

ful your strategy is, it of no use if you

deliverables from my mentor i.e. basi-

cannot implement it . It is always

cally what Britannia expected me to

better to start working on the crux of

do in the coming 8 weeks and what

the project in the early stages, be-

would the ideal outcome be. And then

cause if something is not working you

I took to the streets and obtained in-

have a chance to go shops all over

sights from all the stakeholders whom

Dhanbad including urban and semi-

I would be dealing with. In sales, it is

urban areas. The task required a lot of

MarkMantra TradeWinds 2015

patience and perseverance- at times

sumer behaviour concepts in real life

one faces fatigue after asking the same

scenarios. Also, I learnt how to interact

set of questions to over a hundred

with people with different back-

people! Furthermore, it required a lot

grounds, education and upbringing. I

of local travelling in the scorching heat

would suggest my readers of the junior

of the coal capital. I recall my disap-

batch to be open minded and take up

pointment at the peace I observed in

the challenging tasks offered by Sales.

Wasseypur (darn, these crazy Bolly-

Be patient and enjoy the travelling in-

wood movies!)

volved; and yes, being talkative always

My take away from the internship was

helps!

the application of marketing and con-

Achievers’ At IIFT

Sai Bharath & Vishwajeet Singh won the Airtel Quiz-o-Mania Title 2015

51

MarkMantra TradeWinds 2015

I

t begins on the first evening of

physiology of the disease it cured, car-

your B-school life and lasts at

rying out secondary and primary mar-

least until your first final place-

ket research and building an engage-

ment interview. And for it to end

ment strategy for the identified spe-

sooner, the route still shall pass

cialty. From the office premises to the

through it. Hence, each one of you is

project outline, from the scheduled

to say the least, intrigued as to what a

travel itinerary to the execution of

summer placement is. You are practi-

every project detail, things were suc-

cally chanting ‘summers’ until you

cinctly and effortlessly in place. Owing

cross the threshold of your reporting

to the project pre-work assigned, all

office in the first week of April.

interns were perfectly capable of

For me, it began on April 6 with my assigned project under the mass mar-

time.

kets team of Janssen, the pharmaceu-

During secondary research, I found

tical company of J&J. The project re-

myself juggling with research data

volved around identifying and engag-

from external agencies to identify tar-

ing a specialty of doctors for almost a

get group and target locations for pri-

30-year old brand in India. It required

mary research. Moving on to what

familiarizing oneself with the patho-

52 52

starting off with their projects in no

MarkMantra TradeWinds 2015

fieldwork had in store: well, it made

couraged, suggestions were well re-

the expression “cruel and beautiful

ceived and progress was tracked at

world” come alive for me. It isn’t just

appropriate intervals. Sadly, this may

inevitable but indispensable, for you

not be the case for every intern even

cannot possibly know how until you

in the same organization. This should-

know what to fix. During this patch of

n’t dishearten the aspirants in the

my internship, I gained insights on cus-

least. Yet again, it isn’t even impera-

tomer (physicians) expectations & in-

tive to come from a biology back-

hibitions and glimpses of how the field

ground to perform in pharmaceutical

force strives to deliver on the same. A

marketing. Keep abreast with the de-

striking contrast that pharma mar-

velopments in the industry and in the

keting offers is that in addition to ca-

organization; set goals for yourself

tering to whims and fancies of the cus-

both before and during your intern-

tomer you need to satiate the ra-

ship; hone your analytical skills and

tionale/reason of those who have

excel adeptness, in particular while

been in practice longer than you have

there is still time. Lastly, needless to

been in existence. And as my project

say, in pharma marketing, like any oth-

guide aptly put it, “You get to see the

er sector diligence and confidence

human side of the Gods on earth”

goes a long way in having a splendid

I was plain lucky to end up with a project, guide and team that enabled an

learning internship

experience

to

write about!

increased clarity of tasks ahead with

every passing day. Initiatives were en-

Logo Recall Identify the Logo in the picture

53

MarkMantra TradeWinds 2015

T

he most basic dictionary definition states

one’s hand, people still prefer to take a stroll down

that- ‘Market Research is an activity of

the good old lanes which are crammed up with

gathering information about consumer’s

food stalls and street vendors (both organized and

needs and preferences’. But in today’s world, with

disorganized); enjoying the view and relishing a

the market flooded with a zillion products and a

delicacy here and there, whilst keeping an eye out

gazillion choices, does this very definition encom-

for something that might be worth their penny.

pass the entire gist of what market research is all

And sometimes they take a ride to the uptown

about?

lounge and enjoy a delicious meal in a good ambi-

The 21st century is no longer restricted to a physi-

ence.

cal market place where a buyer and seller meet in

These varied and dynamic trends are making it

quite difficult The tipping point is that magic moment when an out their transac- idea, trend, or social behaviour crosses a threshold, for a marketer tips, and spreads like wildfire.” tions. The marto analyse the person to carry

ket has now up-

― Malcolm Gladwell

market.

Apart

graded itself to The Tipping Point: How Little Things Can Make a Big from going with smartphones; or

Difference

the primary re-

we can say that it has digitalized itself into the lives

search, and keeping track of the latest trends of

of the people. Today, we have got the option of

people’s buying behaviour, the marketer now has

buying any amenity, right from a safety pin to an

to resort to the new high-tech advances like ERP,

electric appliance, from food supplies to apparels;

SAP, Big Data, Hadoop, Cloud and more.

and what not with the click of just a few buttons.

This change in the market trends has become the

Looking at the other side of the coin, even though having such luxuries available at 54

Tipping Point for market research.

MarkMantra TradeWinds 2015 Let’s have a look on the journey of market re-

its focus to making smart decisions. Companies

search, before and after the Tipping Point.

have become more customer centric- they are try-

Flashback

ing to launch products with features that the customers look for. They have put their products in

In yester years, the marketer used to talk to both, the sellers and the consumers in person. Initially, the market research was majorly based on data collection and creating methodologies for understanding that data. Multiple techniques were bought in place for collating and researching datastarting with punch cards th

(early 19 Century, used in US polling process). Couple of

decades

“commercial

later,

the

research”

came into picture- data crunching and analysis paving its way into the market, justifying the ‘Research’.

“The

Likert

Scale”,

“Sampling”,

“Focused Groups”- used for analysing data; and data

collection

techniques

such

as

the hands of the customers, by means of the ecommerce industry. Moreover, various forms of advertising have come into effect which appeal the customers to buy a product. For example, the Fevicol promotion, wherein a stall is put in the middle

of the mall, and people are asked to take any product of their choice free of cost. The trick here was that when people tried to take those products, they found that the items were glued to the shelf with Fevicol. The intent of the act was very clearto make people test the product themselves and say “Majbut jod hai, Tootega nahi”. All these innovative changes in marketing are the by-product of intensive market research. The present day scenario of market research has taken a really high road.

Present Day

“Crowdsourcing” involved recruiting hundreds of

Google, to the rescue!! One of the tools that the

citizens to collect the ethnographic data used for

marketers can use is Google’s ‘Survey-Wall’, a

PAPI: Paper-And-Pencil-Interview.

place where a short survey is floated on the web-

The advances in analysing the modified data

site, the one where you don’t have easy access to,

brought a change in the approach of market re-

unless you pay for it. These survey forms consists

search, dividing it into Qualitative and Quantitative

of crisp, sharp questions keeping in mind that most

methodologies. These approaches do go hand-in-

of the youngsters or users won’t spend an addi-

hand and bring in the paradigm shift with continu-

tional second on reading and answering those long

ous evolvement in both the practices.

questions. But the incentive to get to read or use these ‘walled apps’ would make users answer a

The Tipping Point

question or two on the form. All you have to do is

Now that we know what tipping point is all about,

take out few seconds, fill the survey and voila! You

let’s see how this has changed the picture of mar-

can use the data, free of cost.

ket research. Over the time, the market has shifted 55

MarkMantra TradeWinds 2015 Other technique widely used for the purpose of

ta, both structured and unstructured is the BIG DA-

analysis is ‘Google AdWords’. Marketers make use

TA. And this massively huge data is measured in

of this functionality by keeping track of what all

the terms of Exabyte, which is bigger than

keywords the user is typing to refine his search,

petabytes, and much bigger than terabyte. For

and makes use of this data to finish their analysis.

number-crunchers, 1 Exabyte is equival-ent to 250

Moreover, with the advent of time, the market has

million DVDs, i.e. approx. equivalent to 1 Billion

become more sensitive to the customer’s needs.

movies. And that’s just NOT it, as of today, every-

The marketer’s job thus becomes a notch difficult

day almost 2.5 Exabyte of data is created.

as he now has to analyse the buying characteristics

Most of this data is generated by analysing (or

of a huge number of customers with a variety of

snooping on) our buying trends. More accurate

buying characteristics. In today’s tech-savvy world,

analyses may lead to more confident decision mak-

the answer to this is sentiment analysis, social net-

ing processes. And better decisions can mean

work analysis, association rule learning and more.

greater operational efficiencies, cost reductions

The core of all these algorithms is the data gath-

and reduced risk for the marketers. Thus, we can

ered by all the information sensing devices and

safely assume that the time is not far away when

software on mobile phones or laptops. When the

as soon as you enter in a shopping complex, the

data collected is too diverse, fast-paced or massive

new “Intelligent” devices will automatically predict

for conventional analysis approaches, Big Data

and guide you to your shopping destination.

comes in.

Conclusion

Consider a typical day-to-day situation– we were off doing online window shopping, and after some casual ramble, we go to check our FB timeline for any updates. That is when, the PRODUCT we were just stalking, unsure whether to buy or not, suddenly pops up in the Ad section of Facebook. What

just happened is the ‘cookie-based ad targeting’ working its way into finding our shopping patterns based on past searches. Just imagine if big data also comes into this picture.

All in all, a lot has changed with the advent of technology and the marketer’s job is becoming more challenging and interesting. Not only he has to analyse what is going on around, but he too has to keep himself upgraded and updated with various research tools and environments. We can safely say that the tipping point has managed to keep the marketers on the tips of their toes.

Juhi Arya

First off, what’s this shout around BIG DATA? How

&

big is this BIG DATA? In today’s world, emphasis

Tushar Saklecha

lies on storing each and every ounce of data generated, anywhere and everywhere, on the web of the web. This large amount of da56

MBA(IB)2015-17 IIFT

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