Markathon february 2014 by Markathon IIM Shillong

Marketing Magazine of IIM Shillong

Volume 5 | Issue 8

In the name of

God

Vartalaap with Mr. Sharad Gupta General Manager and Head-Marketing Communications, Xerox India Limited

February 2014

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From The Editor January ended on a disappointing note for most of the Congress supporters with Rahul Gandhi’s first ever exclusive interview not being able to make the desired impact on the audience. It has been hailed as a marketing stunt that backfired which instead of adding credibility to the Congress Party, made a mockery of it. Many people felt Mr Gandhi gave lacklustre answers and was not prompt and precise in answering important questions. However, a few commented that he did his best despite high expectations from his party and the Indian public. February brought some cheer to the country with Mr. Satya Nadella taking over as the CEO of the software giant Microsoft. Mr. Satya made a strong statement on his very first day with a letter to the employees fuelling their trust in the company and adding passion to their dreams. We will have to wait to see how Mr. Satya’s charm would work to help the software giant regain its charisma. With Valentine’s Day a few days away, marketing campaigns are happening in full swing. Many of the e-commerce sites have already put up great offers to lure the customers and are reaching out to more customers through cross media marketing. Do check your mails if you’ve missed out any discount coupons! Interestingly, few campaigns like “Give Your Heart Out” and “Spare a Rose”, inspired by the Valentine’s Day are working for different social causes. This is the second edition by the junior marketing club that has taken over recently. Your overwhelming response for the January edition has been quite motivating for all of us. It instilled greater hope in us and encouraged us to put in more efforts towards making this magazine a worthwhile read for everybody. Let me take you through a small tour of what’s in

store for you this time! “Why God should have hired a firm? “, is precisely what the cover story explores. It puts across various instances where religious marketing is beneficial to most of those who do it. It explains how people make money in the name of God and also looks at the other side of the coin illustrating scenarios where it is put to right use. The perspectives this month elucidate various aspects of luxury goods and their marketing strategies. We get an understanding of a consumer’s outlook towards the niche products and how it has been changing since times. We also take a look into the strategies of Mercedes Benz and how it has been able to make a comeback in 2011. Mr. Sharad Gupta, the Head of Marketing Communications of Xerox India Limited gave us insights into the diverse industries he has worked with. You also get to have a look at the Xerox’s strategy as Mr. Gupta reveals some of the highlights of the repositioning of Xerox. Depicting India Post in a touch of freshness and creativity in this month’s silent voice is something which you would surely appreciate. Apart from these, we have our specials to keep you engrossed in this marketing joyride. With so much love in the air, we hope we invoke the love for marketing in each one of you on this Valentine’s Day! Cheers.

Creative Designers Senior Team : Sushree Tripathy | Vaibhav Annam Junior Team : Malini Aishwarya B | Swati Pamnani

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february 2014

Contents Perspectives Understanding Luxury Anurag Kumar | IIFT

Strategies of Mercedes Benz Tonmoyee Saikia | IIM Bangalore

In the name of God.

Avinash Murali Nair & Jayaraman P | IIM Shillong Vartalaap Mr. Sharad Gupta General Manager and Head - Marketing Communications Xerox India Limited

Eye 2 Eye 16 Consumer Reviews - transparency tools or platforms for stealth marketing? Neha Ladha | IIM Shillong & Pradyut V. Hande | SIMS, Pune Silent Voice India Post Saket Hawelia | IIM Shillong

Specials Addicted Swati Pamnani & Yash B. Bhambhwani | IIM Shillong

Brand Story Nishant Prakash | IIM Shillong

Fun Corner Malini Aishwarya B | IIM Shillong

Radical Thoughts Varsha Poddar | IIM Shillong

Updates Amit Sonwani | IIM Shillong

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perspective

february 2014

Understanding luxury Decoding the consumer mindset

BY ANURAG KUMAR IIFT Luxury brands have always been a fascinating space and luxury brand marketing is both challenging and complicated. Luxury branded goods are an expression of social class, income and reﬁned taste, allowing consumers to distinguish themselves from the mainstream. Luxury branded goods evolved from status symbols into social codes, identifying the owner as belonging to the larger collective group. These consumer mindsets have allowed luxury branded goods to maintain a strong presence despite macro-economic pressures. Over the past few years, lux-aholic behaviour has quelled relative to 1990s and early 2000s. But consumer sentiment is increasingly optimistic as people cautiously climb out of a recessionary period.

Luxury brands have always been connected to exclusivity. But if we look at it from the perspective of the consumer, the definition of exclusivity goes through an evolution. In the initial stage, having the ability or affluence to own a luxury brand which is desirable and recognizable by everyone is exclusivity. It is a means through which consumers assert themselves- whether it is to fit-in or simply to make a statement. As more and more people own the same brand and join the exclusive ‘ownership’ club, just owning a recognizable symbol is not enough. Consumers now feel a strong urge to differentiate themselves to further confirm their social status and to stand out among the equals. The source of exclusivity, then, can manifest in form of acquiring limited editions or something with extraordinary product capabilities or rare materials, craftsmanship; it can also be driven by brand’s distinctive personality or simply the knowledge of the brand legacy. Another observation is that people who seek differentiation tend to have larger repertoire of luxury brands, have a definitive reason for their choice and sometime even prefer to stick to specialist brands. An example could be Rolex, which stands as a symbol of heroic achievement or Tiffany, a symbol of love and beauty. Not surprisingly, most luxury brands have a rich pedigree and extraordinary history. A consumer purchasing a Gucci or Prada product is no doubt influenced by brand‘s rich lineage, heritage and the years of mastery. While genuine appreciation for product excellent needs no explanation, it is not mutually exclusive. In simple words, it does not mean that people who acquire luxury brands for either asserting-self or differentiation

Consumer motivation

Quality, status and appeal are the three major motivators that drive people to want and acquire luxury brands. At the base level, luxury brands are known to deliver superior experience at two levels – first, at a product level and second, at an experiential level. People are extremely concerned about the way these brands make them look to everyone else.

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have no appreciation and love for beautiful products. But, then there are others who buy luxury without having any baggage of what others think. They buy it because they genuinely love the physical / functional attributes that the product delivers or because they find a profound connection with the brand / the brand story. The bottom line is that whether it is self assertion, differentiation or genuine appreciation for product excellence, the aura that surrounds the brands is what makes luxury brands desirable.

ages of women, from the young parasite singles to older affluent women. Consumers express the sense that a luxury brand’s high penetration and visibility decreases its aspirational value. Brands that succeed will be those that respond to consumers’ desire for unique products. Increasing consumer desire for unique products creates opportunities for new entries both at the high end in the luxury category as well as for safe fashion choices at lower price points. * Mind, Body & Soul Consumers are looking for enriched brand experiences. Market trends beg the existence of counter-trends,

Emerging vs. Traditional markets

The key macro-trend impacting the luxury market in coming years will be generational shift.

reﬂected in consumer shifts away from what is too readily available. The luxury brands of today reflect elite customers’ desires for exclusivity, uniqueness, and more individual identities. So keeping that in mind, leading brands are offering limited and special editions. Over the past decade, luxury brand marketers’ responses to consumer needs for total brand experience have accelerated. “Luxury loyalists” have become even more discerning than before, and demand enriched brand experiences in return for their patronage, thereby creating challenges for luxury brands to deepen the emotional bonds between them and the brand. Going beyond the expected superior levels of customer service, successful luxury brands now offer to enrich every aspect of one’s life – a total brand experience for the mind, body and soul. As consumers desire brand

This is applicable for both emerging and traditional markets. But there are some country-dependent factors which also explain enthusiasm for luxury. Consumers in traditional markets are looking for both product and service quality whilst consumers in emerging markets are still looking for status symbols and social acknowledgement. For them, luxury is a means of conveying a trendy lifestyle, a unique personality and expresses a desire to display social distinction. It is also motivated by hedonistic desires such as self-indulgence as well as a need to reward oneself.

Changing consumer attitude and mindsets

Today there is shift away from traditional social codes which is transforming the sources of identity for both men and women. Their brand choices are increasingly aligned with their desire for self-expression and relatively higher levels of individuality. * From “Me Too” to “Me First In today’s era of individualism, people are looking for unique products, irrespective of the price. There is a growing resistance among consumers in owning the same brands as ‘everyone else’. This trend is particularly evident across all

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perspective

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for the mind, body and soul. As consumers desire brand interactions beyond the retail environment, brands are no longer just selling to customers, but are providing services that will be scrutinized for a certain level of quality. * Diversity in Brand Lifestyle Consumers easily accept and believe that less expensive brands can deliver value in terms of quality and functionality. In 80s and 90s luxury brands were purchased based on their prestige and aspirational value. But times have changed. As consumers of this generation acquire high level of confidence, many do not feel the need to prove themselves by acquiring a luxury brand. Also consumers’ previously negative attitudes toward the purchase of discounted products are changing. Today, it is socially acceptable to purchase off-price or from discount stores. With a combination of increased conﬁdence, shifting life stage priorities, and an adapted deﬁnition of value, a trend is observed across all global markets that consumers are increasingly mixing ‘high’ and ‘low’ lifestyles. Even though lower-priced items and discount shops are increasingly socially accepted, only those delivering on quality will succeed. * What’s in a Label? In an era of low-cost manufacturing, authenticity still reigns. Earlier consumers were obsessed with country of origin of a brand. Foreign luxury branded goods from Italy and France were seen as prestigious and stylish. Today, leading luxury brands are opening facilities in China, chasing cost reductions and manufacturing efficiencies. Luxury

heritage that are produced elsewhere” – such as French brand manufactured in China. To the consumer, quality is intrinsically and emotionally connected to the overarching brand story and brand heritage which contributes to the status and premium price. Maintaining the trust and respect of consumers by delivering authentic products will derive higher value for both manufacturer and consumer. * ‘Going Green’ effect Today’s Consumers look towards ‘green’ luxury. Today, consumers are increasingly expressing and forming their individual identities through the brand experiences and products they choose. People have started embracing environment at all levels and consumers are increasingly concerned about their carbon footprints. This is further fuelled by Hollywood and the causes celebre of global celebrities, all making an undeniable impact on global consumer trends. In the near future, consumers will increasingly demand ecologically sustainable and ethically sound labour practices to be woven into the brand stories of luxury branded goods. Green luxury will continue to inﬂuence consumers, leading to the natural institution by luxury brands of corporate social responsibility measures that address consumer sensitivities.

brands have commanded a premium for their products based on the premise of higher quality linked to countryspeciﬁc artisanal skills. More than 90% of consumers believe that in order for a luxury brand to be a true brand, it must offer quality. There is already evidence that consumers will not continue to pay premiums for luxury products that are made in China at a lower expense to the manufacturer. Research has shown that consumers would “lose interest in purchasing items tied to a speciﬁc country’s

changing social demographics. Parasite singles and affluent women will continue to drive category revenue. However, luxury brands that keep their pulse on developing trends may ﬁnd that new segments and sub-segments can be nurtured beyond consumers who fall within the “luxury loyalist” category as well as among those whose interest may be declining

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Recent consumer research on the mindset of luxury consumers suggests that the era of the individual is now. Luxury brands that wish to succeed will need to continue to adapt, echoing ever changing consumer desires – their attitudes and mindsets driven by continually

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perspective

february 2014

Strategies of Mercedes Benz The power of emotional marketing

While Mercedes is associated with sophistication and prestige, its main weakness is that it lacks sportiness and cool quotient. In 2011, Mercedes saw a dip in its shares when competitors like Audi and BMW overtook it to occupy the top 2 ranks in the Indian Luxury car sales figures. In order to influence Indian consumers, Mercedes Benz had to change the game. Mercedes chose a 4 pronged strategy to achieve its targets. - Leverage Opportunities: Mercedes Benz Financial, the financing arm of the car maker started offering the cars on lease for tenure of 36 to 48 months from the year 2012. This was based on the insight that car owners generally buy a new car after 3-4 years. Leasing a Mercedes is cheaper compared to buying one. And this has helped target many professionals who aspire to drive a Mercedes but are unable to buy one due to the high prices. Mercedes also leases its cars to cab services companies like Ola Cabs. - New Products: Mercedes aggressively launched new cars in India despite a slowing market. In November 2013, it launched the Mercedes Benz Edition C at INR 39.16 lakhs . It also launched its compact cars Mercedes Benz A Class and B Class.

Tonmoyee Saikia IIM Bangalore

India’s tryst with luxury dates back to the pre-Independence days when the Indian Kings and Maharajas lived a lavish lifestyle and used luxury products. In present times, India has about 2.54 lakh members of the top 1 percent global wealth holders. Luxury consumption market is at about € 1 billion and is set to grow by about 20 percent in 5 years. The Indian Luxury car space is at a very nascent space with sales of around 30,000 to 31,000 units every year, comprising about 1.2 percent of the overall car market as of 2012. However, the competition is very intense with brands like Mercedes Benz, BMW, Audi, Jaguar Land Rover and Volvo competing to gain share of the market. German luxury car manufacturer Daimler AG entered the Indian Market in 1994 with the launch of its famous three pointed stars logoed Mercedes Benz cars. The brand philosophy of Mercedes Benz is “Best or nothing”. In 2012, the company sold 7,138 cars in the country and posted a sales growth of 5.3 percent in 2013. The product models in the Indian Markets are A class, B class, C Class, E class, S Class and GL Class. Target consumers of Mercedes Benz are as follows: Inheritors: Typically people in the age group of 18- 25 years with family wealth inherited over generations and who are born with a silver spoon in their mouth. Self- Made: This set of consumers is in the age group of around 30-50 years; who have generated their own wealth by being successful in business or in their careers. They include entrepreneurs, sports persons and film stars. Professional Elite: Professionals Elite belong to the age group of 35-40 years; generally work for corporates and are doctors , CEOs and investment bankers, among others. According to a study done by Nielsen, the main feature among Indian consumers in the automobile market is that they are highly value conscious, while having very low brand loyalty.

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- New Markets: Mercedes has focused on dealer network expansion, display outlets. - Experiential Marketing: Mercedes brought in innovative ways to increase customer acquisitions. These innovative ways helped in increasing the buzz around Mercedes.

c. AMG Training Academy: Mercedes also opened a Formula 1 Training Academy in the Budh International Circuit to train aspiring race drivers. Charging around INR 75000 to INR 1 Lakh for each training. This is a first-of-its-kind

a. StarDRIVE Experience: StarDRIVE is a one of a kind test drive experience which took the aspirational Mercedes Cars directly to fans in different cities. It also showcased the superior safety features over its competitors. The seats of Mercedes bend forward, seat belts tighten and windows close automatically whenever an accident is about to happen. Indiaâ&#x20AC;&#x2122;s best race driver simulated a Mercedes car accident with a passenger in the car. Participants in this experience were able to experience these features and understand the superiority of the brand. This StarDRIVE Experience program reached about 12,000 fans in different cities and was shared on social media sites like Facebook as well increasing brand awareness.

academy which enabled drivers to take complete control of vehicles, from high speed driving to active safety handling, with special events held at regular intervals to test your skills and more. d. Sales Promotion Campaigns: Mercedes provided an exclusive opportunity to meet F1 superstars Lewis Hamilton and Nico Rosberg and watch the Indian Grand Prix 2013 Live to lucky customers from India. e. Young Star Driver Program: Mercedes trained young and aspiring race drivers between the 15 to 25 years age in a One Day event at the Budh International Circuit. Mercedes conducted this program in association with the Federation of Motor Sports Clubs of India (FMSCI). Through these measures, Mercedes Benz was able to recapture its lost market share. Mercedes Benz India sold 2,696 units in July to September 2013 as against 2,545 units sold by Audi in the same period. It regained its Number 1 position in India. The challenge now is to sustain it in a very dynamic and competitive market

iSales App b. iSales App: Mercedes also launched an app iSales in September 2013 to connect with its young tech savvy customers. This app which is given to Mercedes Benz salesmen allows customers to virtually experience Mercedes Benz and customize features before booking a car.

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cover story

february 2014

Cover Story

Jayaraman P

Avinash Murali Nair

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In The Name Of GOD MARKATHON

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cover story

february 2014

et us start with an interesting puzzle. If I were to ask you to name one uncanny similarity between Tirumala, Sabarimala (both pilgrimage centres), D’damas and Dow Jones Dharma Index, what would you say? One could marvel at the connection that exists between pilgrimage centres, a fashion store and a global index provider. For all those who still haven’t found the connection, Welcome to the world of Religious Marketing! The idea of religious economy frames religion as a product and those who practice or identify themselves with any particular religion as a consumer. But when the idea of belief is brought into the equation, this definition expands, and ideology affects both the product and the consumer. Many firms sell their products using religious marketing, if their target segment has the religious profile. It is a powerful branding technique if used rightly and judiciously. Cyclepure ‘agarbattis’ are very successful in imple-

Innovative religious marketing techniques!!

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menting them and there is no harm in using religious marketing if no one is being cheated in the process. Generally pricing is done by two methods; cost based and market based. But, when it comes to products catering to religious beliefs and sentiments, it does not follow these pricing methods. If McDonald’s burger were to come without onion and other masalas, we could expect the price to be lesser. But it could be sold at a premium, if it were sold as Jain McMaharaj. Even in a Jain populous area, where demand and supply equilibrium can be established at a point similar to the other areas, Jain food products are priced higher. Right from a humble black thread sold in the streets of temple to an expensive vastu fish priced as high as 1.5 Lakhs, there is a premium attached to it which baffles the supply demand pricing strategies. In those cases, the pricing is purely based on the individual capacity of the buyer. Same product are being sold at different prices to different customers purely based on their capacity to spend. Potential Believers From outside, religious marketing might seem to be practiced only by a few vendors majorly constituting unorganised sectors, like “fake rudraksha” seller on temple streets. But the potential of the same has been realised by many organized sectors and such marketing methods being actively followed aggressively. Let us consider the case of Akshaya Tritiya and Jewellers. Akshaya Tritiya is an auspicious day to Hindus and Jains. According to the legends, it is an ideal day to do good deeds like giving donations or starting new business. But jewellers and other financial institutions have started making vigorous campaign, turning the materialistic urge and religious belief in people into a marketing gimmick. They stock in new models for this occasion with “Lakshmi-inscribed” gold coins, diamond jewellery and golden dollars with the pictures of many gods and goddesses. Though it can be argued as a simple supply demand strategy, it is often considered to be creating artificial demand exploiting religious believes. Even religious institutions like temples and churches use the same belief to increase their revenue, which is many a times against the religious dharmas. Many popular temples sell ‘Prasad’, often by not performing the ritual ‘Naivedhya’ without which it is not considered a Prasad, leave alone the question of selling them. Websites of many churches promote the non-religious products like fancy neck-

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cover story laces and tee-shirts in their homepages.

february 2014 that they had funded terrorist organizations. There are a number of well-documented cases in which Shariah-compliant financial institutions have participated in the financial support of terrorism. Money laundering for illegal organizations is the only objective of many such firms.

Tactics of Religious Marketing Associating with religion gives a certain credibility and safeguards against negative reactions to failures. Customers would not question more if religious reasons and omens are cited as reasons for delay or inappropriate services. It also gives you wider coverage and an unpolluted image. But it cannot be and should not be applied everywhere. This is may be one reason why English dailies do not have spiritual supplements while most of the regional dailies publish one. Religious marketing, if not handled properly, could result Anushka Sharma bringing home in irreversible failure. One classic example of this is prosperity on Akshaya Tritiya Nirmal Baba. But another Baba from Puttaparthi, who Case of Ethical Investments used his “miracles” to showcase his spiritual powers, Religious market is not always used to exploit the cus- was largely successful by attracting a huge number of tomers. It is very much like any other marketing tool, followers. People believed in him not just because in which target segment is identified and positioning of his “spiritual powers”, but also because of his ofis done accordingly. The catch here is the belief. Eth- ferings to the society – charitable hospitals, educaics based financial institutions use this faith to attract tional institutions and societal contributions. Hence, people to invest in their firms. Ethical funds are in- while using God’s name in the propaganda, it is really vestment vehicles just like any other mutual funds, necessary to stand up to the values and principles. but they are compliant with popular faith based prin- Oh… And how can we forget the emerging ciples like “Dharma” or “Shariah”. A portion of the trend of “Fake Godmen”? There could not be a betprofit is often used for charity. There is a demand for ter example to explain how naïve Indian’s are when cleaner sources of revenue and ethical funds may be it comes to religion. Blind faith is a commonly oba perfect option. There is served phenomenon an argument that no firm here. Godmen do their can be Shariah compliant, dose of STP as well. For as all the companies rea minute let us put ourceive or pay interests for selves in the shoes of its surplus cash and loans those Godmen and do respectively. But a greata proper STP for them. er threat is the objective Target market: Age of these firms, which are Group- 18 to 80 years being questioned for its (Excluding Atheactivities in the name ists), troubled people of charity. The U.S. Govand Peace-seeking ernment has shut down people. (Ah forget it! at least three ShariahAlmost all Indians) compliant charities in P o s i t i o n i n g : the country, after proving Miracles (Paid When Marketing and Religion meets….

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drama), providing philosophical guidances and radical ideologies (Courtesy: Books) This exercise was indeed fun. Now let us take a comprehensive look at the market attractiveness for these Godmen. On a more serious note, Godmen market themselves as direct messengers of God. Blind faith has led to such appalling situations wherein people go to Godmen to seek cure from diseases, rather than trusting doctors. Maha Kumbh Mela held at Allahabad witnessed hoardings with Swamis as advertising models. Swamis made promises ranging from solving Hinduâ&#x20AC;&#x2122;s problems to railing against global warming. However lame they may sound, people still believe these Godmen and trust them with their gravest perils. The market created by the largest human migration in the world was mostly exploited. Religious Tourism Another segment which is fast gaining popularity and has a huge potential is religious tourism. The number of tourists who queued up for darshan at Siddhivinayak temple in Mumbai was at least five times more than the numbers who cruised on the Arabian Sea to visit the sculpted Elephanta Caves. The Haji Ali dargah attracted six times the number of tourists who went

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to see the Ajanta caves. Travel and accommodation industries are two major beneficiaries of religious marketing. Nearly fifty percent of all package tours organized are religious tours. Most of these travel plans are budget packs and are becoming extremely popular amongst middle class customers who constitute a major chunk. It is an example of the positive impacts of religious marketing where a win-win situation is offered both to the customers and to the business firms. In a country like India wherein people can be influenced easily by religious sentiments and beliefs, religious marketing has a bright future. The market can be easily exploited or efficiently tapped, as it all rest in the hands of the marketer. But marketer has to realize that in order to sustain the business based on religious beliefs, one has to keep up with the necessary ethical practices. But there are many organizations like mutts, NGOs which use religion to attract funds for a greater benefit to the society like free education, free meal schemes and free medical treatments. As long it is not used to exploit the beliefs and sentiments, it can be used as an effective branding technique. Ok. Letâ&#x20AC;&#x2122;s get in to the act. Please share this article with at least 15 people or else you will receive a bad news tomorrow morning.

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vartalaap from archives

february 2014

An Interview with Mr Sharad Gupta General Manager and Head-Marketing Communications, Xerox India Limited

harad Gupta is General Manager and Head-Marketing Communications Xerox India Limited. He specializes in Marketing Communications, Direct Marketing, Brand Strategy, Marketing Budget Plan-

ning, CRM & Customer Journey Analysis. A marketing professional with 14 years of work experience, Sharad has worked across diverse industries in companies like Tata Infomedia Ltd. , Bates India and Microsoft India. Since the last seven years at Xerox India Limited, he has been involved in budgeting, identification of new market segments, developing Go to Market Strategy and in alliances & alignment with advertising / DM / PR agencies. In this exclusive interview with Markathon, he speaks to us about his experiences in the industry and gives us a peek into Xeroxâ&#x20AC;&#x2122;s strategy.

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vartalaap from archives

february 2014

Markathon: You wish to join a non-profit organization. How do you think your years of experience in marketing domain will contribute towards a social cause? Mr. Gupta: When I talk about a non-profit organisation, I mean a non-profit charity set-up which can address a social responsibility cause and contribute to a community or section that deserves to be supported or helped. My marketing experience definitely will help me in pushing the idea and initiative to the wider sections of industrial bodies and people to support the initiative. Also my expanded experience in the industry and a network with a wider section of professionals who are potential enough to participate and contribute to such initiatives will help me in getting the idea through to the apt audience. Also will help the set-up in identifying the potent yet low cost vehicles to position and propagate the idea to right targets in the industry. My experience and profile will also help the set-up in garnering a credible stature which definitely becomes lot more critical for fund-raising. Markathon: Which was your most interesting assignment so far? And what made it so interesting? Mr. Gupta: Definitely my assignment with Xerox. One, because Xerox is one of the most sought after brand which every professional desires to work with. Secondly, Xerox is a very dynamic brand and as the brand in-charge, it offers a greater challenge to position the brand equity as the business process and document management solutions market leader. To expand on the point, we all know that Xerox as a brand has always seen a limitation as a generic copier brand which is no more a reality as it has moved

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widely in the solutions domain. Thus as a marketing communications head, I have to continuously think, act & react to propagate Xerox thought leadership in the solutions space. We are the market leaders in the Managed Print Services Space, thoroughly strong in the Technology space and we have commanded leadership in the Graphic Communications & Production Printing Space. Thus, the brand has always given me a lot of space to play and experiment to make the brand synonymous to document management solutions legacy. The brand also offers a wide B2B span to play with Below the Line, Through the Line and activation, making it the most interesting brand assignment to work with. Markathon: When, why and how it was realized that it was time that Xerox, a leading global brand, needed a brand repositioning, wherein the biggest danger is loss of existing sales? Mr. Gupta: Xerox is a very dynamic and innovative brand. It has been growing rapidly and has been recasting itself to bring it closer to its customers offering the most innovative offerings in the business process and document management solutions space .

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vartalaap from archives

february 2014

Aligned to the growth strategy and to disrupt the impression of copier set-up, the re-positioning was required. We projected our legacy and thought leadership in the document solutions space and the market acknowledged the same.

tions, green technology and productive solutions. Thus talking to them via different media vehicles been very interesting and experimentative. Markathon: In April 2013, Xerox India unveiled ecofriendly printers for SMB Segment, what different did you do in marketing such printers?

Mr. Gupta: Following the legacy of an innovative brand, eco –friendly, green printing solutions was next in the line to strengthen its position in the SMB sector across top 200 cities in the country. We took the solutions showcase across all major tier ½ cities through an interesting series of road-shows and market activation. A strong PR and media story Our existing sales was in the technology & services strengthened the marketing strategy. An aggressive domain so we were never worried as the re-position- digital activation was also an integral part of the ing was meant and targeted to increase our market strategy talking about the benefits and advantages share. of the product line. Markathon: What positioning changes did you bring in for Xerox India exclusively? Knowing that consumers in India are more rigid about their opinions, how challenging is it to execute successful repositioning here? Mr. Gupta: The strategy in India was also aligned to the global brand positioning of leadership in business process and document management solutions space. The additional dimension I added to the marketing was a lot more “C” level engagement, also termed as CXO marketing to reach out to all the decision makers. Also, I tried more and more digital marketing coupled with Social Media to be more invasive and visible at the right forums and platforms. Marketing budgets are always limited and shrinking so the smart approach is always to identify and invent smarter ways of marketing and that’s exactly what I did differently for the brand. Consumers in India might be rigid in their opinion yet they have an appetite for innovative products and solutions. Xerox has always offered the latest in innova

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Markathon: What would be your one piece of advice for all the Markathon readers who want to be successful managers? Mr. Gupta: Think as a Customer before drawing a marketing board & leverage on Social Media Penetration.

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eye2eye

december february 2013 2014

Consumer reviews - transparency tools or platforms for stealth marketing? NEHA LADHA iIM SHILLONG The advent of social media and ecommerce saw the emergence of the new way in which a customer can interact with the companies, i.e. over the internet. The companies see this as an opportunity to get in touch with the customers, to have insights into the core needs and to develop and improve their products and the best way to do this has been consumer reviews. The benefits of consumer reviews are manifold. It helps companies to depict the trust they have in their product, and enhance customers’ buying and post-purchase experience. The negative reviews are also seen as a way to know better about a company’s offering and reinforce the belief in customers’ mind that you are there to listen to him. They’ve helped businesses figure out customers’ tastes and preferences and adjust themselves accordingly. Many argue that consumer reviews have been used as a means of guerrilla marketing which might be true in some cases like e-commerce sites, but this was not the reason why posting reviews was started and the companies who want to have sustained relations try to keep the process genuine. The best example would be Dell, which launched Direct2Dell to facilitate active dialogue with customers and IdeaStorm.com for crowd-sourcing ideas and bringing service improvements, and saw increase in revenues and retention of loyal customers. If we look from the customer’s perspective also, the reviews are helpful in analysing products and services, weighing pros and cons and letting them know how they can use the product better. Who amongst us would have not looked at reviews before a purchase on Flipkart? It’s evident that consumer reviews have been beneficial for both the parties and with the increase in online marketing witnessed, are here to stay for long, provided businesses work to keep the process transparent.

Pradyut V. Hande SIMS, Pune What once began as a sincere endeavour at gleaning critical consumer feedback, escalating offering awareness, reinforcing purchase decisions and converting suspects and prospects into potential buyers; has now devolved into the unfortunate abyss of questionable marketing practices. Indubitably, consumer reviews have become a covert stealth marketing platform; relegating transparent thought and blatantly honest opinions to the “marketing back burner”. Over time, companies have sagaciously understood the significance of peer driven product/service reviews in an increasingly interconnected consumer community and hyper-competitive operational environment. However, there exists a fine line between grasping an emergent reality and leveraging the same to suit its ever evolving marketing mix whilst straddling ethical boundaries. Consequently, many companies have made the cardinal sin of promoting their offerings in the guise of ordinary customer reviews through paid bloggers, in-house online content managers and other surreptitious avenues. Thus, what companies may believe to be a confidence-building/inspiring measure can transform into the duplicitous act of actually “insulting” customers’ intuition and intelligence. A recent case in point is the massive backlash that Microsoft has received from irate fans and potential users for paying prominent bloggers to post favourable videos on YouTube, promoting its latest gaming product -Xbox One. Thus, in the quest to drive sales; companies can ill afford to adopt such unethical marketing practices as the fallout on being found out can have major negative ramifications. An honest positive endorsement by a satisfied and loyal consumer will translate into long term cumulative word-of-mouth sales; instead of an attempt at duping the very same. Co-creating perceptible value augmented by trust will only fuel greater customer delight and retention down the line. The key lies in achieving a healthy balance between ethical promotional activities and encouraging constructive consumer feedback on a micro-level.

Topic for the next issue: “Children in Advertising: Emotionally manipulative or just plain, simple slice of life?” Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 22nd Feb, 2014. Include your picture (JPEG format) with the entry. Winners will receive a prize money of Rs. 500 each!

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silent voice

december february 2014 2013

Theme: India Post Last monthâ&#x20AC;&#x2122;s results Winner Winner saket vivek hawelia unnikrishnan | iim shillong | niam

Congratulations!!! Vivek receives a cash prize of Rs 1000!

honorary mention rohan modi | iim shillong

NEXT THEME FOR SILENT VOICE: jabong.com LAST DATE OF SENDING THE PRINT AD: 22nd February, 2014 EMAIL ID: markathon.iims@gmail.com Send your entry in JPEG format named as SilentVoice_<Your Name>_<Institute>only.

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AD-dicted AD-dicted

PRODUCT: Tata Sky

december february 2013 2014 BY yash bhambhwani IIM SHILLONG

BY Swati pamnani IIM SHILLONG

PRODUCT: Hyundai Motor Grand i10

POSITIONING: Bas Phone Ghumao, Tata Sky lagao

POSITIONING: Surprisingly Distinct

CREATIVE AGENCY: Ogilvy & Mather

CREATIVE AGENCY: Innocean Worldwide

YouTube Link:

CATCH

YouTube Link: http://www.youtube.com/ watch?v=i5nEfYhot1M

http://www.youtube.com/ watch?v=LyOEq9flktA CONCEPT: Ever imagined how easily a message could be communicated through a visual aid? The latest ad from Tata Sky has proved it that conveying a message is really easy, all you need to do is conceptualize something that will directly strike the customers mind. The ad is shot in a location that seems isolated and away from civilization, but it does not end there, the girl in the scene calls the Tata Sky office and explains the complicated address of her residence and enquires if they could provide a dish connection at that location. Surprisingly the answer was a yes and the man said “Phone lag gaya nah, toh Tata Sky lag jayega”. VERDICT: Catch The message that the dish service can reach out to the remotest regions in India was conveyed in a very simple manner and immediately draws your attention to the fact that the reach of the dish TV service has come to match the telecom industry. This is an indication that the company has a strong distribution network and television is no longer restricted to the urban areas. With such a strong message Tata Sky has managed to lure customers and first time users of dish TV services to try out their service. From Markathon’s point of view the advertisement is a CATCH.

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CONCEPT: Hyundai Motor has come up with a campaign for its recent launch, visually attractive Grand i10. The TVC opens up with a person starting the car. On its journey, the car passes by a dog, which barks “wow” in human voice, followed by a fish jumping out from a glass bowl and exclaiming “ooh la la”. Moving ahead, the film shows a horse uttering a neigh saying “awesome” as it sees the car moving through the countryside. The car then passes through the mountains where we hear a monkey, followed by a parrot and a vulture expressing astonishment on car’s looks. At the climax, a voice over says “Everyone is talking the grand new lingo – surprisingly distinct Grand i10. The grand new lingo” and it closes with a tiger roaring “Graaaand” as the car moves along its side.

MISS

VERDICT: Miss No doubt the film has tried to do something new in a car advertisement and has been successful in highlighting its “wow” factor. It has made an attempt to highlight that even animals have liked the model to an extent that they are also talking in a new lingo, with all praises for the car. However, the ad has failed in creating an impact and highlighting the essential features of Grandi10. Completely involving animals in the shot showed as if the product was designed for them. Also the fact of animals praising the car’s looks doesn’t clearly portray that it will be liked by the masses. Though this added humor to the film, in all, the TVC failed to make the grade.

IIM Shillong

brand story

february 2014

Brand Story : WoodLAnd Nishant Prakash | IIM Shillong Part of the Aero group, a $100 Million company founded over 50 years ago, Woodland is widely recognized for being one of the first brands to create an entirely new segment of ‘Specialized Outdoor Adventure’ shoes across the globe; the achievement becomes even more astounding when you realize that the generation that was supposed to be its target consumer group was being simultaneously exposed to the aggressive battle between the two behemoths of the Footwear industry – Adidas and Nike. It slowly crept into the Indian market to create its own identity, develop a segment that was untouched by the aforementioned tussle and at the same time offered the consumers something that they were yet to explore. Woodland, founded in Quebec (Canada), entered India as early as 1992 and has since gone onto open more than 400 stores across the country recording a healthy growth rate of close to 25% in recent years. If you thought that their growth story was phenomenal, the story behind the brand’s inception is even more amusing. Though the brand never released an official statement about this, but back in 1992, Woodland’s parent company, Aero Group, was staring at an unavoidable and colossal loss due to the changing political conditions up north. The Soviet Union was being dissolved into a group of Socialist states and the Aero Group was set to lose out on a market that was responsible for a major chunk of its exports. It was then that the company decided to release its excess inventory to markets like India, a move that ultimately led to the realization of the brand we all know as Woodland. Today, Woodland boasts of a number of production facilities spread across the globe. More so, the product portfolio has expanded greatly to include apparels and other outdoor equipment and accessories including tents, sleeping bags and rucksacks. However, the essence behind all its products remains the same and the brand makes a conscious effort to showcase it through its innovative array of slogans talking about human spirit, outdoors and freedom in the same breath and celebrating a feeling of ‘Eleutheromania’. You just need to walk into a Woodland store to experience first-hand what the brand is all about – the refreshing green and brown colours you associate with the exhilarating outdoors form the core of the ambience at all their

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stores. In an era where the likes of Nike and Adidas relied heavily on celebrity endorsements, Woodland took an entirely different approach and chose to introduce its customers to a whole new lifestyle instead. The brand roped in a set of ‘elite ambassadors’ – veterans and young adventurers who could inspire people to try the outdoor life. With the 16-25 age group as its target, most Woodland products and campaigns are designed to appeal to the ‘Adventurous Youth’ segment. The brand’s sponsorship of the Sunburn Festival and the resulting campaign asking consumers to design their own sippers was also designed keeping this segment in mind. While traditional print and television media accounts for most of the promotional budget, the digital medium too plays a crucial part in the brand’s marketing mix. Another way it tries to attract consumers is through activation – by organizing camping trips, getting customers to experience ATV rides and by putting up mountain climbing walls in schools. Environmental consciousness forms a major part of its philosophy and consequently, its campaigns as well. With over 2-3% of the profits earmarked for eco-friendly activities annually, the brand also aims for carbon neutral retail operations by 2015. Woodland hit the right chord with the youth of the nation through its numerous CSR and in-store activities under its Proplanet initiative. One such campaign asked customers to exchange the carbon credits (which they get on the purchase of environmentally friendly products) with discounts up to 15-20% on the woodland products. Two years ago, Woodland also renewed its partnership for the UNICEF wash program to ensure safe drinking water to the school-going children across the country. But the buck doesn’t stop there: the brand has long strived for creating an environmentally friendly range of footwear that are completely biodegradable and avoid the use of harmful materials during manufacturing. This, along with the fact that all company business cards and hangtags are printed on ‘certified 100% post-consumer recycled paper’ tells you how deeply engrained the brand’s core philosophy is with its actual operations. The only complaint that we have is that maybe the brand needs to publicize such initiatives more…

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fun corner

february 2014

Fun Corner Malini Aishwarya Batchu | IIM Shillong

Match the different types of marketing with the brands that have implemented them

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radical thoughts

february 2014

Radical Thoughts VARSHA PODDAR | IIM Shillong

3D printing has slowly been creeping into the mainstream consumer market as the newest offering from the world of technology. Used earlier in some esoteric production processes, and also more recently in the construction of concrete homes, 3D printers can now be found on Amazon.com for prices as low as $1000. These printers that use rubber as base material and can dispense a number of colours, are increasingly being picked up by designers to fast-track the proto-type design process and by consumers to make highly customised versions of products like toys, dresses and shoes that they would have earlier paid premium prices to get their hands on. The implications for marketing and for marketers are severe. For one, the production of certain products may itself be challenged – what use is a fancy couture label if customers can customise their own dresses at home? And with edible 3D printing on its way, what would happen to all the dinner take-outs and the gourmet restaurants? Additionally, marketers are also being offered a challenge to use the 3D medium to surprise and woo their audiences. Coca-cola used it to good effect in Tel Aviv when it offered a few lucky customers to preserve their likenesses forever in three-dimensional moulded plastic at their production plant in the city. The “mini-me” had to be built by the customer on a

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3D printing : another dimension to Marketing?

mobile app and then after a full-body scan to perfect the dimensions, the customer could carry home a tiny version of himself – an exhilarating oddity to be flaunted on mantelpieces and to evoke the name of Coke for as long as it lasted. The technology has been put to more utilitarian uses by the likes of eBay, which through its mobile app eBay Exact offers customers who don’t own 3D printers the chance to print customised items such as phone covers and metal rings in partnership with 3D companies like Sculpteo, MakerBot and Hot Pop Factory. Belgian insurance provider DVV, along with Happiness Brussels, is using 3D printing to duplicate lost keys of its locker-holders – a huge cost-centre for banks and insurance agencies is the replication of lost or damaged locker keys. Volkswagen designed a promotional campaign for its Polo where customers could custom-design their own 3D version of the Polo and the most popular version would get the chance to be replicated into its full-blown, life-size version. It is all good as long as the technology can be used to add product offerings and to wow customers and tickle their curiosity. The real challenge, however, would surface when the printers become accessible more freely. How would marketers react then? Would brands crumble at the cost of this technology or would they embrace it as their own to prolong their existence? Where would the bubble burst, if at all? The best way to predict the future may be to create it, in this case, quite literally.

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updates

december february 2013 2014

By amit sonwani IIM Shillong

Brand Launch Dell joins tablet race in India Targeting the leadership position in the Indian market, PC maker Dell announced the launch of its latest family of tablets -- Dell Venue, comprising of Android and Windows-based devices. The Android-based Dell Dell will sell the Windows 8-based Venue 8 Pro at Rs 26,499 from next month.

Perfetti Van Melle India launches Stop Not Stixz Perfetti Van Melle India (PVMI), one of the market leaders in confectionery category, is expanding portfolio of its snacks category, Stop Not, with the launch of Stop Not Stixz, in addition to the existing two variants – Golz and Disks. Stop Not Stixz is a tasty, crunchy, spicy new snack. It will be available in three flavours – Wow Masala, Pudina Passion and Tomato Tadka. The new range will be available across India in convenient pack sizes of Rs 5, Rs 10 and Rs 20.

A ‘Twist’ in Tata Nano’s tale In an attempt to shed its “cheap car” image which has hampered sales Tata Motors has come up with a new variant, the Nano Twist, a ‘smart city car’ with power steering, improved beige interiors, a new instrument cluster with driver information system and a redesigned gearshift console. The varaiant is priced just under Rs. 2.36 lakh leaving the 1 lakh rupee car perception far behind. The model is introduced as a part of Tata Motors’ youth centred strategy to reposition Nano in the market.

Brand Watch GlaxoSmithKline Consumer expands Horlicks portfolio GlaxoSmithKline Consumer Healthcare expanded its

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‘Horlicks’ portfolio with the launch of a new flavour. two Horlicks Kesar Badaam is the fourth variant in the Horlicks portfolio; the other flavours available are Malt, Chocolate and Elaichi. The new variant, which has been launched in packs. Mahindra Two Wheelers launches new bike Centuro N1 Mahindra Two Wheelers Ltd, launched a new motorcycle Centuro N1 priced at Rs 45,700 (ex-showroom, Delhi). The company said the new bike delivers a fuel economy of 85.4 kmpl (ARAI) and it comes with anti-theft alarm with engine immobiliser. The new Centuro N1 launched at an attractive price, will enable new consumer segments to experience the incredible Centuro proposition. Mahindra Two Wheelers sold over 1 lakh units of its existing bike Centuro in 6 months and it hopes the new version would strengthen company sales in the segment. Ebay India Offers ‘9 Hour Delivery’ Service Following the trend of offering the same day delivery with Amazon, Flipkart and Snapdeal, now ebay one-ups all these by offering “9 Hour delivery”.Unlike others Ebay has kept this service free. The service will be available in Mumbai and the order has to be placed before 12 noon. Classmate brand from ITC crosses 1k cr mark Classmate, the homegrown stationery brand from ITC, has just crossed Rs 1,000-crore mark by consumer spends, one of the few brands in FMCG to do so. ITC now has a strong presence in the sector with Classmate and Paperkraft brands.

Media Thumps Up, Being Human, CNN-IBN and AIF launch the campaign ‘Veer’ Living up to its toofani message of unleashing the potential within, India’s most iconic brand Thumps Up has come together with brand ambassador Salman Khan’s Being Human Foundation and CNN-IBN to launch Campaign VEER – Unleashing the Inner Potential of Persons with Disabilities. With the American India Foundation (AIF) coming on board as Implementation Partners, VEER is set to be a two-month long media campaign showcasing case examples of Persons with Disabilities (PwD) who have succeeded in their endeavors on the strength of their self belief, despite environmental and attitudinal barriers.

IIM Shillong

updates

december february 2013 2014

a.m. wins creative duties of Bajaj Auto international business Bajaj Auto has appointed a.m., a Mumbaibased creative agency, to handle the creative mandate of its three-wheeler category’s international business. The agency won the multi-agency pitch, which began in December, 2013 in Pune. Under the mandate, a.m. will be expected to relaunch the new-generation Bajaj RE, which includes a three-wheeler passenger vehicle.

Ad Watch ICICI Bank: Banking on a tab A part of the ‘Khayaal Aapka’ brand thought, the bank’s latest TVC talks about ‘Tab Banking’ and promises customers a smoother option of opening new accounts. The ad created by Ogilvy and Mather and featuring Amitabh Bachchan shows the ease of opening account through the service where all formalities are fulfilled by bank executives visiting Mr. Bachchan who is enjoying flying kite at his home. The idea is to convey that lengthy procedures at banks needn’t eat into one’s leisure time and is evidently communicated. Yo u t u b e l i n k : h t t p : / / w w w.y o u t u b e . c o m / watch?v=lGgelcED6Z4 Maruti Suzuki Stingray: My thing, Everything Maruti Suzuki India Limited rolled out its advertisement

for the Stingray which focuses on youth. The TVC created by White Onion showcases the cars use as everything which youth desires right from being a café and disco to status symbol. The ad shows the use of the use of the car in different situations and ends by describing it as “Everything about me packed in one”. Youtube link: http://www.youtube.com/watc h?v=jUgDtzb4LJI&feature=player_detailpage MTS: Luring Gen-Smartass MTS, in association with Micromax, has released a multimedia campaign to woo today’s digital natives. The TVC positions Canvas Blaze as a ‘smartass phone for the internet generation’. It opens with a confident collegian getting a chest tattoo (presumably a symbol of defiance), as a voiceover (VO) declares his mantra: “It’s all about me”. The VO goes on with statements like, “I make Google what it is - a verb”, “I don’t sleep till my downloads are over” and “All the World Wide Web is a stage. And, this is my show.” The ad show the exuberance, confidence and speed which are the product characteristics and it would not be wrong to say that the company has done a kickass job for its smartass phone. Youtube link: http://www.youtube.com/watch?v=jUgDtzb 4LJI&feature=player_detailpage

Articles are invited “Best Article”: ANURAG KUMAR | IIFT

He receives a cash prize of Rs.1000 & a letter of appreciation We are inviting articles from all the B-schools of India. The articles can be absolutely anything related to the world of marketing but it should be an original work that is not published elsewhere. The articles can be specific to the regular sections of Markathon which includes: • Perspective: Articles related to development of latest trends in marketing arena. • Productolysis: Analysis of a product from the point of view of marketing. • Strategic Analysis: A complete analysis of marketing strategy of any company or an event. Apart from above, out of the box views related to marketing are also welcome. The best entry will receive a letter of appreciation and a cash prize of Rs 1000/-. The format of the file should be MS Word doc/docx. The last date of receiving all entries is 22nd February 2014. Please send your entries marked as <ARTICLE NAME>_<SENDERS’ NAMES>_<INSTITUTE> to markathon.iims@gmail.com.

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We would love to hear from you: markathon.iims@gmail.com www.issuu.com/markathon

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