Hello readers! The summer internships are now over and we hope that they were full of learnings but yet fun. We would also like to welcome those who have just embarked on their B-school journey. No matter what stage of this journey you are at, there would be no dearth of challenges and learnings. As students look forward to resume or start their college life, we bring to you another edition of our magazine filled with wonderful insights from the world of marketing. This month’s cover story talks about how “Brand Purpose and Values” are one of the essential ingredients of the recipe of growth and how a brand can work towards having an effective brand purpose. The magazine also illustrates an interesting article by Jain Jigyasa and Anumula Sreenath from GIM, Goa on how personalization is the next big wave to drive marketing. Mehali Biswas and Rohit Dudi from IIM Lucknow share their perspective on how brands can shield themselves from the threat of disruptive innovation in today’s world. We often come across the debate on which among physical or digital advertisement is more efficient today. Mr Subhrojyoti Saha from IIM Shillong takes his stand in the favour of digital advertising in the Eye2Eye section while Mr Rishabh Jain from IIM Shillong counters him. This month’s ‘Jab They Failed’ provides an in-depth analysis of how and why the frozen food products launched by Colgate in the
early 1980s failed. The ‘AD-dicted’ section covers an ad-analysis of two recent advertisements and our take on whether they performed as well as intended. Our digital marketing section ‘Digigyaan’ talks about the “Up-selling and Cross-selling”. This month’s Logoistic shows the evolution of the BMW’s logo since its inception. Also, the five must-reads and updates are back for readers to enjoy. We would like to thank all the entries of perspective and eye2eye. We would also like to thank our readers as they are the ones who push us to do better in every edition. We also look forward to your feedback and suggestions. Happy Reading!! Team Markathon
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Andar Ki Baat Perspective
Cover Story
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Brand Purpose and Value Mansi Khandelwal |
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Personalization
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Big Data Analytics for Taking Marketing Decisions
Jigyasa Jain & Anumula Sreenath | GIM
Mehali Biswas & Rohit Dudi | Tapmi, Manipal
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Eye 2 Eye
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Physical vs Digital Advertisement
Subhrajyoti Shah IIM Shillong MARKATHON
Risabh Jain IIM Shillong IIM Shillong
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Andar Ki Baat Specials Logoistic: BMW
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Apoorv Gupta | IIM Shillong
AD-dicted
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Catch & Miss advertisements of the month Aishwarya Tiwari & Anurag Pandey | IIM Shillong
Digi - Gyaan
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Upselling & Cross Selling Nitin Nathani | IIM Shillong
Marketing Gyan
Jab They Failed Colgate Kitchen Entrees
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Apoorv Gupta | IIM Shillong
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Top 5 Reads
To get the brain tickling Aishwarya Tiwari | IIM Shillong
Updates
Fresh from the Marketing World Aishwarya Tiwari | IIM Shillong
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perspective
PERSONALIZATION: THE NEXT BIG WAVE TO DRIVE MARKETING
By Jigyasa Jain & Anumula Sreenath Goa Institute of Management
Marketing will see an overall shift from globalization to personalization. The current marketing trends show major focus data analytics, voice search, content marketing in addition to new content formats like augmented reality and artificial intelligence will soon go mainstream.
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ntroduction
When thousands of marketers were questioned what the major challenges that they have encountered the data revealed that 66% of the marketers had a constrain in generation of traffic & leads and 40 % struggled in proving ROI, followed by Securing enough budget, Identification of right technology, Managing the website, targeting content for an international audience, training teams, hiring top talent and finding an executive sponsor.
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perspective Taking a que from this data the major constrains marketing glitches we are looking to address are essentially 1) Marketing Automation 2) Customer Experience 3) Retention 4) Analytics 5) Paid Acquisition 6) Customer Experience and Satisfaction 7) Analytics Let’s see how these challenges can be addressed
Content is the king The modern consumer today has 24/7 access to information and craves to be well informed and consume immense amount of content before making a decision to purchase. The consumers are looking forward to have meaningful interactions with the brands. This high customer expectation calls for personalized content. This can be substantiated by the fact that content marketing is attracting more than 20% of advertising budget especially after a downward trend in ads, especially television. It is important to create content that should be noticed by the audience rather been pushed. The main challenge which the marketers face is that with so many platforms available what would be the content that audience want to see and pay for so as to create enough traffic and leads. Content marketing has already started proving itself especially after Tesla which outsold Mercedes Benz by 3X times who is an advertising behemoth lost to Tesla who barely spends 1/190th of advertising expense of their closest competitor but managed to break through and gain sales without advertising. Therefore, Content is going to be a tactical resource and will be essential to create resonance with consumers expectations.
Live video –Antidote for synthetic content This current marketing trend is attracting customer loyalty & affinity. Short Videos with an engaging series are not only efficient but also bring customers back. Facebook and Instagram are running in the forefront when it comes to live video, which is essential for marketers to take note. Facebook has already capitalized over $50 million
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to get content makers and media corporations to create videos for Facebook Live. Sephora in fact had uploaded a live video for which it received over 180,000 views Instagram Live is also getting the needed customer attention. Instagram Live has an advantage that the recordings of live streams appear at the top of your followers feeds along with other stories. This is leading real estate to get one’s content seen without having to pay to endorse posts for exposure. Instagram also notifies one’s followers when one starts a live stream which is a great way to catch grab your presence. Thus, these live streaming apps offer brands unlimited potential to showcase their offerings which they should leverage before it becomes saturated. BuzzSumo’s analysis revealed that video dominated Facebook’s top 2017 content. 360-degree videos deliver an enriching experience, growing the success of customer engagement. Facebook is supplementing this trend with a page on how to get ready to produce and upload this type of content
Data & Data Analytics – Trademarks of 2017 Organizations today needs to deal with tremendous volumes of data, organizational intricacy, swiftly fluctuating customer behaviors, and ever-increasing pressure. New technologies and fast proliferating channels and platforms have created an immensely complex situation. The enormous data and digital technologies at disposable has opened up an unparalleled array of insights into customer needs and behaviors. To deal with this companies are turning Big Data into reality. Productivity rates and profitability are – 5-6 % higher for companies using big data & analytics. This huge heap of data is only valuable if it they put their efforts in the required direction. The companies need to concentrate on: 1) Recognize valuable opportunities: Marketers should learn to view the data from a different lens rather than sticking to the basic goals such as increasing the market share and use the data to create ideal customer profiles and get to a level of specificity that is significant. 2) Track consumer decision journey: With an array of tools, devices and technologies available for customers it is of utmost importance that companies should derive more detailed insights regarding consumer behavior and preferences. The customer journey tracking is essential not only for customer acquisition but
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suppliers, etc. can be optimized so as to increase efficiency. The game changing landscape would be not to be data scientist but that the marketer has to maintain an adequate analytics perspective, as well as an elaborate attention to the business strategy and the creativity
Augmented Reality: keep your eyes peeled In the last few years, augmented reality has taken the world by storm. The technology which overlays virtual objects over real-world surroundings has made major steps entering mainstream usage. Brands can finally generate authentic immersive experience for consumers. The global AR market is anticipated to grow rapidly with a CAGR of more than 65% during the forecast period (2017-2020). AR technology gives an opportunity to the companies to 1) Improving the Buying Experience: The current demand in the market is for unique ideas which can provide customers unique experience & AR is going to provide a ray of hope
also keeping the existing customers from defecting to competitors. A report by Salesforce, revealed that 52 % of customers are likely to shift brands if a company doesn’t try and personalize their communications. A number of brands have been using data from previous customer interactions or geographical profiling to deliver targeted messaging to their customers. B2B companies also need to invest in effective communication of their offerings as 35% of B2B pre-purchase activities are digital. With the customers doing away from the linear approach of finding about a product to purchasing it the full funnel marketing approach needs to be tweaked in the current digital age where 43 % of online users aged between 16 and 24 using social media for product research.
2) Interactive Selling: AR is making buying interesting & hassle free. Imagine u want to see how a particular cloth fits, how would a furniture look, the final view after the renovation of your house etc. These confusions are followed by reckless buying, returns, and regrets. The more the value of a product the more it aches when you make wrong decisions. With AR sellers can provide a better solution for their users. AR is already being used widely for various marketing & branding campaigns.
3) Snapchat: Snapchat’s been the foremost driving force behind the AR renaissance. Snapchat was the first social media company to effectively bring AR features to its user base with the help of lens Over the period, lenses has turned into Snapchat’s most popular feature and a revenue generator which is majorly because of the capability of brands to sponsor them. Since the launch of sponsored lenses, numerous brands have been testing the feature. In 2016, Taco Bell made a successful deal partnering 3) Align the marketing mix with the findings of the first with Snapchat to launch a special Cinco de Mayo two steps: With the new tools and high-quality data lens, viewed a record 224 million times in a single at disposable, it is feasible to get analytic precision by day building betters models and draw hard ROIs. 4) IKEA- has changed the way customers shop fur4) Efficient Procurement: Leveraging data, marketing niture with IKEA Place: IKEA Place, an app build in functions like choice of media purchasing, third party
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perspective collaboration with Apple, allowed customers to virtually place furniture inside their apartment. IKEA Place automatically scales products in real-world settings with 98% accuracy, according to the company. With the help of the app photos and videos can be shared with friends and family. More than 2,000 items were available during the launch of the app and IKEA has plans to launch new product lines with it in the future. IKEA positive that AR will boost their profits and with total revenue of 1.6 billion$ in 2016 they have forecasted online sales of 5.9 billion$ by 2020
july 2018 trate few of the services provided by AI integration in marketing, below are few: Following are few recommendations on how marketers can make the most out of AI to endorse their brands and create a unique experience for customers.
1) Chatbots: They allow companies to make 1:1 conversations at scale, not only giving it a personalized touch but also opening newer avenues for customers who do not want to connect over email or download an app. Facebook has opened up their complete technology for building chatbots and anyone can make use of it. You can use the company’s messenger platform to build and power chatbots to interact with your cus5) L’Oreal- The application of AR provides tremen- tomers. dous marketing potential for beauty companies. L’Oreal has already embraced this technology by de- 2) CRM: an essential part of marketing and creating veloping its own AR branded apps such as Makeup a good relationship with your customer. AI will help Genius and Style My Hair. These apps allow custom- companies to answer basic customer queries and ers to virtually try on makeup and hair styles on self- respond them with as much precision as a human ie-taken photos. Loreal has also embraced partner- would. ship with PerfectCorp to integrate beauty collections into the YouCam Makeup app. YouCam, the world’s 3) Optimize SEO for voice: There has been an expomost popular mobile makes up application has ex- nential rise in voice searches and to cater to this trend ceeded 100 million downloads for iOS and Android Apple and Amazon, both have developed exceptional in 2016. It was also awarded with “Best of 2017” voice assistants. Marketers need to restructure SEO honors in the Google Play App Store efforts to make sure that voice searches show results. Voice recognition technology has got a huge boost The future for AR looks incredibly bright, thanks to due to AI and we can see its results in almost all the extensive focus of technology giants. Apple lately in- major voice assistants. Here are a few of the examtroduced ARkit, to develop augmented reality plat- ples: form for iPad and iPhone. Goggle has also launched a website Ploy, where people can share virtual/ Amazon Echo – Echo has been an outstanding success augmented reality objects. Tech Leaders like Mark with its ability to purchase simply by speaking to the Zuckerberg believes that AR will reach a point where machine, from ordering a pizza to booking an Uber there will no longer will be a need for physical TV, an app costing 1$ will do the work! Baidu’s Duer – Baidu’s new chatbot assistant allows ordering products within its interface
Artificial Intelligence: Sprinting with the speed of Light 4) AI in Marketing / Advertising – While a number Marketing and advertising agencies have been leveraging the advancements in the Artificial intelligence area from past few years. This transformation of using AI has been proving quite profitable as it is cutting down the human efforts drastically. To illus-
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of applications can be considered Image recognition / machine vision is going to show expanding Opportunities which would be viable. With Image recognition / machine vision the future of shopping can be as simple as snapping a photo of a shirt you want to buy using a web app and select an image within Google
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search. Companies like CamFind and their competitors are already working in this domain.
To summarize, Marketing will see an overall shift from globalization to person-
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alization. The current marketing trends show major focus data analytics, voice search, content marketing in addition to new content formats like augmented reality and artificial intelligence will soon go mainstream.
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perspective
Big Data Analytics for taking marketing decisions in the near future By Mehali Biswas & Rohit Dudi TAPMI Introduction:
Disruption has become a jargon in the entrepreneurial world. With the rapid emergence of disruptive business models, the existing scenario of business functioning and engaging the customers is undergoing a transformation.
“Strategy is not the consequence of planning, but the opposite: its starting point.” -Henry Mintzberg It is possible to start a business from grassroots level and catapult it to the height of achievement by crafting proper strategies, detecting the discontinuities that may pose a real challenge for the business in future.
However, the concept unlike innovative businesses is not new. With the advancement of technology, and rapid evolution in knowledge; wants and demands of people are changing. This is driving the business models to change in order to keep up with the pace of change. In this competition, the firms that could not match up the speed of evolution, failed like “Lonely Planet” but at the same time, start-ups like “Trip Advisors” snatched all the followers.
In business, when we speak of disruption, it actually means “Disruptive Innovation”. This term was coined for the first time by Clayton Christensen of Harvard Business School in his magnum opus “The Innovator’s Dilemma” in 1997.
In the 21st century what we think of mere disruption are actually catastrophic changes that are revolutionising the way firms engage with their customers, creates seamless and memorable experiences for them by understanding their wants.
Disruption is not as scary as it sounds. It actually means an advancement in the age of globalization and industrialization. Disruption aka “disruptive innovation” depicts the creation of new markets, which earlier no one had thought of. It means understanding not only the present demands of the people but also having knowledge and insights about their future needs and demands.The theory of Clayton Christensen also throws light on the way small enterprises or firms with minimal resources entered the market, created new customers, attracted old customers, and finally disrupted the established market system.
For example- the 3600 video launch by YouTube gives the experience of virtual reality that was once only a dream. The official VR channel of YouTube has many attractive offers for the viewers including music performances, news events, sports, racing and films. Now, this is not only a disruption but a remarkable shift in business plans to engage the customers.
Abilities to overcome the disruptions in business
What Disruption poses for the business owners of today? MARKATHON
For any business owner it is perilous to underesti-
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mate the power and magnitude of disruptive models of business. No business wants to suffer the phase suffered by Kodak, once a market leader and now an extinct brand.
by online subscription and shipped directly to customers. Examples of Grofers, Lenskart, and even beauty parlour services like UrbanClap are new disruptive models working in different cities. Thus, existing business firms need to extend their arms in the So let us look at some of strategies and changes to new markets created to prevent from being endancope up with disruption in the business competition. gered. To ensure business is ready for digitisation – it is vital to understand and accept that the current period is of digital disruption. So, for businesses it better to stay focused, innovate and collaborate instead of fearing or rejecting the new change. This will boost the effectiveness of the business; provide an exciting path for customers, offer them better, real time communication, and finally opening up some new market segments. To ensure collaboration in different business teams– in the age of disruptive innovation, collaboration will act as the key to success. The team leaders of the business need to encourage communication and collaboration of inter-departments like heads of marketing and Information technology need to work hand in hand to embrace the changes. The firm should also pair up with the right consultants and technology provider to embark upon a seamless journey of disruption. Taking advantage of the internet speed and rejuvenating the subscription model – gone are the days of DVDs and cassettes, even saving music in external hard disks or pen-drives, as the massive internet speed and mobile tech-advancement helped in streaming of high quality videos and music contents for a monthly payment of fees. Ganna.com, Wynk Music etc. are two of the many that supply millions of listeners for their songs demand. Nowadays daily use materials to vital medicines all can be obtained
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To cope up with changing definition of consumer convenience – as the definition of convenience is changing for customers with the changing era, businesses are fighting hard to come up with better seamless services to satisfy them. For instance, anyone who had once stand in a long queue outside airport or railway stations to book tickets know the pain of it. But now with the different applications (like IRCTC app, Goibibo, Paytm) in our smart phones we can book tickets with preferred seats anytime, anywhere. Similar is the case for hotel booking or movie show booking, etc. Companies need to come up with even better solutions to give utmost convenience to customers. Introducing gamification – this technique involves the use of different elements of a gaming strategy by certain companies on their own brand interface or platform. This includes points, rewards, stars, etc. to engage and attract customers to buy more products or services from them. For instance, Big Bazaar has its own card where points get added on each purchase and customers can redeem it on any next purchase. Starbucks has its own reward system where customers on buying certain products can earn points for future purchase. All these are to increase the number of visitors to the stores . Self-disruption – till now, the best business strategy to live up to the expectation of consumers is selfdisruption. All the big players in market like Apple,
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Amazon, etc. follow it. The steps are to find new ways to adapt, evolve, and then recapture the market to stay relevant. Companies should follow this model where they should understand the need of customers before customers themselves and come up with solution to provide the instant they feel for it.
Thus for any business or company, whether small medium or large, new or existing, all require focussing on the customers and their experience to thrive in the competitive market. This includes spending more resources and capital on research and development to think and solve problems anticipated for future; or else the business themselves will become the victim of disruption.
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cover story
july 2018
Brand Purpose and Values
Cover Story
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rand purpose, an idea larger than profit, is seen as a way to drive long-term business growth sustainably. Having a purpose has emerged as one of the most influential ways to MARKETING engage consumers and increase brand affinity. Further, it is BUDGET starting to be an expectation of most of the consumers, something they look for while choosing a brand. As said earlier, purpose is a reason for brands to exist beyond making profits. It combines the ambitions, beliefs and values that motivate the company and the changes that it wants to bring to the world. Some define purpose in terms of social work while others claim that you can have a non-social purpose as well, for example, to be the most thrilling or exciting energy drink in the world.
1. Purpose-led brands, it is claimed, have higher profits
As per a research by Jim Stengel, former global marketing officer of P&G, it was found that 50 brands which outperformed the market in past decade, in terms of value creation, consumer bonding and profit, have a very clear brand purpose. Further, brands which are built around values have a meaningful impact on their consumers, businesses and the society. A purpose defines the reason
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why the brand exists, signifies a new path for its the society and wider world. Following are the growth, helps to recognize opportunities and three common ways in which brands can conpaves new ways to deliver higher-level benefits. sider purpose:
2. Purpose might not be the single secret 1. A view of the world that forms the business and its priorities, for example, improving gento growth
On the contrary, some industry analysts chal- der equality - Havells or self-esteem - Dove. The belief needs to be driven by lenge Stengel’s observathe top management and tion. This view states that rooted in the corporate culthere is not one secret to ture success because people 2. What does the brand and society are complex, want to achieve, and what implying that what works is the future vision? in one context might not 3. What is the brand role in stand true at another place achieving the desired puror time. Another reason pose? stated is that growth not only depends on the comHowever, an important pany’s own actions but also on new market entrants which can cause point to make here is that a brand purpose does not always need to solve the world’s social isradical disruption. sues, for example, Red Bull wants to “Energise Let’s look at a live example. Pepsi’s disastrous the World.” There are brands that use purpose to ad featuring Kendall Jenner provoked debate change the status quo. It goes beyond categoryabout the misuse of purpose. Some people also based positioning and so, to identify a purpose, complained at the Cannes Advertising Festival marketers need to know the reason why their about over-rewarding the ‘social good’ ideas brand exists. Subsequently, following questions and ignoring the commercially driven advertise- should be considered: ment. While purpose could be a possibly good •What do our consumers care or worry about? thing, critics suggested •What trends will imthat brands were too pact the category in the quick to jump to the next ten years’ time? trend rather than dis•What ‘norm’ do we covering the best ways want to overturn? of differentiating themselves. Therefore, to 4. The way a brand drive sales as well as societal good, a brand’s behaves has greater purpose should have a influence than the long-term focus, a stratproduct or service it egy to overcome cynicism and fit clearly with sells the brand. Historically, brands have relied on conveying their messages expecting that audiences would 3. There are different types of purpose, but listen and thereby act on what they have heard. it should be driven by ‘why’ the brand ex- However, now the brands’ messages have to ists mean something, move from media attention Is it true that you are creating overwhelming A to reliable actions, or face indifference from the brand purpose is ultimately a force for good, ei- consumers. Nowadays, brands need to have a ther in consumers lives directly, or broadly, in bigger impact. The way a brand or an organisa-
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tion behaves and acts has a greater impact on consumers’ interest and connection than any individual product or service they provide.
5. Consumers expect brands to have a purpose
As per the Content Marketing Institute, about According to a research by Havas Worldwide, an important side of brand reputation is that it not only makes consumers more likely to buy the brand but also makes them more eager to pay a premium for it. A Mediacom research in 2017 found that half of the respondents were willing to pay more for a brand that supports a societal cause, and almost half of the consumers in the age group of 18-24 year had bought a product because of the brand’s purpose. Also, as the Edelman’s Trust Barometer shows, 80% of consumers think that businesses should play a vital role in addressing societal issues. Furthermore, Nielsen research shows that 64% of consumers in the Asia-Pacific region have a propensity to buy socially responsible brands, which is the highest percentage worldwide.
6. Brand purpose can help prevent equity dilution in the fragmented digital age
employees with the customers, and it needs to be reflected in the way a brand or company brand communicates with the world. However, it takes more than just creative work that supports a cause or a belief. It needs to be true to the brand. All purpose-driven brands yield a societal or social benefit, but if it isn’t aligned with the brand, it won’t work. Following checklist shows how you can communicate your brand’s ideal authentically so that it resonates with your consumers. 1. Does the purpose reflect your business’s fundamental reason for being, its people’s core beliefs, its customers’ values? Do your customers know and understand what you stand for? 2. Is the purpose impacting lives or genuinely improving something? Purpose can actively Are your business initiatives and improvements making an impact? 3. Does the leadership buy into it? Are your leaders looking to your purpose when making every business decision? 4. Does it inspire your employees? Do your employees come to work every day understanding their purpose, their role in making an impact on the world? 5. Does the business bring it to life across all its systems and all touchpoints with stakeholders? Does your communication align with your purpose? 6. Does the business measure what matters most and evaluate its operations and people in terms of the purpose?
The focus on getting digital marketing implementation right might lead to inadequate attention on the consistency of brand messaging and experiences, which can jeopardise longterm brand equity. Brands can address the risk by focusing on consumer insights that explore the brand’s role in their lives and culture, and Conclusion a clear idea of purpose which is appropriate to Brand purpose is the glue that keeps it all tothe category. gether – the customer target group, employees, societal stakeholders and new business. It is all How to have a more effective brand pur- about having a positive impact on consumers’ pose lives and the world around them. Purpose gives Purpose is the reason a brand exists beyond brands or companies a sense of direction in an making money; it inspires, motivates and re- increasingly changing marketplace and is corretains customers and employees. A strong pur- lated to preference, which, in turn, is linked to pose connects the core beliefs and values of the business success.
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eye2eye
july 2018
What is more efficient today, advertisements in newspapers and magazine in physical or digital form? subhrajyoti saha IIM shillong
rishabh jain IIM shillong
In the past few years the popularity of online advertising has reached its peak. Various brands are now diving more and more into the online space to capture customer attention. There are various reasons which have led to this change. The most important ones which have contributed to this change are: •Rise in digital circulation: There has been a rise in digital print circulation over the last few years. The opportunity of the news industry lies in understanding its audience and creating relevant content to build engagement With this the digital advertising revenue is also increasing. It grew about 5.4 percent in 2016 and 32 percent over the last five years •Cost- The cost of advertising in the digital form is much less than the physical form. This gives the companies a better ROI and savings in their marketing budget. •Reachability- With more people using smartphone and the penetration of internet the reach of digital advertising is better than its physical form. Nowadays the daily time spent in mobiles is on an average of 3-4 hours. Brands are nowadays looking to advertise more in the digital media than in its physical form •Trackability- One of the most important advantages of advertising in digital space is trackability. The reach of the advertisement, the clicks generated and the views can be tracked. Thus, the strategy can be modified accordingly. This benefit is not available in advertising in newspapers and magazines in the physical form It is data that drives smart advertising and online advertising trumps print media in this. Digital marketing media is the most effective way to reach vast audiences and to get a brand at Top-Of-The-Mind.
It is a fact that we are moving towards a digital age and now we consume most of the content be it news or entertainment through our mobiles or laptops, but is it the time to write the obituary of print ads? Let us compare the return that we generate from digital to that of print advertisements. If we were to recall the last branding/advertisement activity that we remember, I am sure it will be of a traditional form as we all tend to ignore or have low recall for most of the advertisements in digital format. As per a study sponsored by Canada Post, factors such as ease of understanding, persuasiveness and attention span contribute significantly to the overall effectiveness of any advertisement. Physical advertisements had 75% recall compared to just 44% in digital format. As per overall effectiveness, print format got a score of 1.31 while digital scored 0.87. In a similar study by Temple University researchers, which used FMRI brain scans, found that paper advertisement activated brain areas responsible for desire and valuation and thus relate better with advertisement effectiveness. Research also confirms that fMRI scans are better predictors then surveys and questionnaires. Physical material evokes more emotions and thus leading to better brand associations. Sometimes along with tactile stimuli, advertisers also use scent to increase the efficiency. Thus, we see that science supports print advertisement regarding the impact and therefore better returns. oducer Margarine Unie and British soap maker Lever Brothers. From that moment on Unilever has gone on to become one of the largest producers and marketers of fast moving consumer goods. It is present in 190 countries and has a turnover of €48.4 billion.
Topic for the next issue: “Does advertising promote excessive consumerism?” Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 25th August, 2018. Include your picture (JPEG format) with the entry. Winners will receive a prize money of Rs. 500 each!
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eye2eye
july 2015
By Apoorv Gupta IIM Shillong The origin of BMWs logo has always been surrounded by myths and trend continues to this day. It has always been postulated that the logo is a representation of airplane propellers indicating the quality and power of BMW’s legendary engines. This myth originated from the fact that BMW’s parent company was an aircraft engine manufacturer and perpetuated or rather accentuated by BMW when they launched a series of advertisements in 1929 superimposing the logo over an airline propeller. The original intention of this marketing push was to highlight a newly sealed deal to produce radial aircraft engines for Pratt & Whitney. But the truth is that the logo was not inspired by spinning propeller blades against the backdrop of a clear blue sky. Before undergoing a series of mergers and acquisitions, BMW existed as Rapp Motorenwerke which was an aircraft manufacturer. Rapp Motorenwerke lasted only 4 years due to financial recession after World War 1 and was converted into a vehicle manufacturer with the name Bayerische Motoren
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Werke (Bavarian Motor Works) by its founder Franz Josef Popp in 1917. He set out to design the logo for the newly formed entity and came up with something similar to what he had for Rapp. The new logo had the name of the company on the outer circular strip same as that of Rapp with a circular icon in the middle. The circular icon contains blue and white colour to represent the colours found in the Bavarian flag but with reversed order as it is illegal for anyone to trademark symbols of the state. Even as the brand evolved, minimal changes have been made to the logo over the years and the logo still boasts of the iconic simplicity. Some minor changes have been made to the width and colours of the border but the core of the logo remains intact. It is without a doubt that the latest logo is more neat, sharp and crisp than any logo in the past. It is trendy and yet reminiscent of the long glorious history of BMW!
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AD-dicted AD-dicted
PRODUCT: Nestaway
december july 2013 2018 By Anurag Pandey IIM Shillong PRODUCT: Kodak Life
POSITIONING: The new way to rent CREATIVE AGENCY: The Co. Integrated YouTube Link: https://goo.gl/ r362dd
By Aishwarya Tiwari IIM Shillong
POSITIONING: #LaterMaybeLate
CATCH
CREATIVE AGENCY: Ogilvy & Mather
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YouTube Link: https://goo.gl/aD3kez
CONCEPT: This advertisement is in the form of a catchy jingle. In the ad the music teacher sings a song which can be loosely translated into this “From tomorrow Latika will not come to the class because his father has to pay the brokerage”. This implies that the burden of brokerage payment is so much that her father won’t be able to pay the fees for the music class. After the jingle another teacher talks about Nestaway highlighting the offering of the product. He informs the viewers that the family homes are brokerage free and the company provides instant search, instant move in, assisted maintenance and low security deposits.
CONCEPT:
The advertisement begins with a scene in most probably a sub-urban house, where a man in his 40s is doing Yoga, much to the shock and amazement of his father. The father is shown to be fitter and more active than him and is returning from some exercise routine. In the conversation that ensues, the father asks his son whether he has taken insurance till now or not about which he has been asking him for a long time. The son shrugs off the question, saying that he is looking for the ideal one amid the myriad of options available today. At this point, the father tells him about Kodak Insurance.
MISS
VERDICT: Catch
VERDICT: Miss
The startups in India have started using mass media advertising especially television to spread awareness about their product. They are now looking to earn profits and have increased their marketing budget. Lately Uber, Ola, Swiggy have all used television advertisements. Nestaway has also started video advertisements. This advertisement works because it is able to convey the message in a catchy and a creative way. It identifies the core issue of the target segment (High brokerage) and provides a solution which is not only brokerage free but also has multiple other features. The advertisements brings out all the key features of the offering and in the crowd of hundreds of videos this video stands out. This is one of the many such videos which follow a similiar theme. This video shows that catchy jingles can still work and thus Markathon believes this advertisement is a catch.
This advertisement is a part of Kodak’s campaign “#LaterMaybeLate.” Although it highlights the subtle father son rivalry and competition that probably does exist in every family, the main problem with this advertisement is that it fails to highlight how the entire storyline is related to the main campaign. In fact the main message is the number of people insured by the company. If one might think deeply, then it may seem that the maybe “#LaterMaybeLate” is shown through the concept of regular exercising: using a father who is fitter than his son, and also more persuasive about taking a life insurance. But this is when a person has the time, energy and motivation to think about the advertisement, and the advertisement is not engaged enough to persuade him/her to do so. The ending also seems rather abrupt, with the reason for buying Kodak is that many have bought it already.
MARKATHON
15
IIM Shillong
jab they failed
july 2018
Jab They Failed Apoorv gupta iIM Shillong
Colgate Kitchen Entrees
Brand extensions have always been tricky as the existing consumer perception regarding your brand have a huge say in the success of your new product. Companies attempting extension without taking cognizance of this fact have usually fallen flat on their face. One such example is that of Colgate entering into a range of frozen food products called Kitchen Entrees in 1982. Colgate was a leader in the dental care segment and has always been synonymous with the same category. In one of its bizarre extensions, Colgate decided to capitalize on its popular brand image to sell a new line of frozen dinners. Would you put something in your mouth which has the same taste as your favourite toothpaste? As expected, the product line did not work as Colgate intended it to. The product was taken off shelves as soon as it came and never got to leave the US soil. In fact, Colgate is not the only brand to have failed with food products. Using this example as reference, let’s try to understand why venturing into new product ideas in the food segment is tricky. When we go to the supermarket, we go with certain expectations. For instance, we expect ketchup to be red and not green. When these expectations are turned on their head, not only is there a bit of cognitive dissonance but it’s simply weird. And it’s not until the shock wears off that we actually ask ourselves, “Would anyone possibly want to buy this?”. Christopher Cornyn, the president of DINE, an agency called upon by major brands when they are looking to rolls out new products stresses that creating a new food product is indeed complex. According to Cornyn,
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today, a product needs to satisfy about 5 consumer need states – functional, nutritional, emotional, social and cultural. About ten years ago you had to satisfy one or two and you had a hit. Now inventing a new food product requires a holistic approach that addresses all of these. If you think that a consumer judges a product only based on the taste, you have just seen the tip of the iceberg. There are attributes beyond taste that catch the consumer’s eye. For instance, packaging and pricing is crucial in such items. Moreover, food products, especially those in the ready-to-eat segment can easily by substituted by cooking. Although Indian markets have started opening up to these, a freshly prepared meal is still the clear winner. Here pricing becomes critical as people will be willing to purchase this only if they find their money’s worth in it. But what really hit Kitchen Entrees what that like any other brand extension, the product was still connected to the core brand. No amount of beautiful packaging, tempting discounts or mouth watering tastes could counter that effect of that. Brand extensions thus should be well thought out, field tested and should make a lot of intuitive sense. Colgate Entrees was not a bad product but should have been launched under a different brand name with no mention of Colgate on the packaging. Understanding consumer perception and the frozen foods market would have helped too. They could have foreseen that the frozen food market was highly saturated in 1982, and when people think of Colgate they tend to think of shiny teeth and not frozen meatballs!
16
IIM Shillong
july 2018
digi-gyaan
Upselling and Cross-selling By Nitin Nathani IIM Shillong Introduction
Cross-selling
Upselling and cross-selling are two words which are often used interchangeably. Both of them are used in benefit of the seller. Let’s first find out the difference between both. Upselling is generally used to encourage customers to purchase a similar product, but of a higher-end. It helps the customer to look into the option of a better product and different product ranges available. It is generally provided as a list of different choices available in the product description.
Cross-selling helps in identifying products that satisfy additional needs that are not fully fulfilled by the original item. A comb could be used for this process to a customer buying a blow dryer. Timing of offer is an important aspect and proper cross-selling points users to products they would have purchased anyway by showing them the products at the right time. This feature isn’t restricted to particularly retail segment or ecommerce. Most of the fields include it even banks and insurance agencies. Similar process Cross-selling is used to invite customers to buy has been done by shoppers at their retail outlets. related products. These products are generally complementary products which can be used to- For example, credit cards can be cross-sold to gether. Both the methods can be used simulta- people registering a savings account in their
neously for benefit of the customers and the sellers. They can help in providing maximum value to customers and increasing the overall revenue. The average order value also increases and the recurring costs of marketing decrease. Let’s discuss about cross-selling this edition and upselling can be taken into the next edition.
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bank and life insurance can be suggested to customers buying insurance coverage of a car. In ecommerce, generally cross selling is used on product pages during the checkout process. It is useful for helping repeat purchases and showing the ranges of a catalogue to the customers. Nowadays, many customers don’t really
17
IIM Shillong
july 2018
digi-gyaan
success here is to understand what your customers want and value and then responding with products and features that meet their needs. To decrease the doubt regarding the product which the seller has used for cross-selling, the sellers generally show the products when the customer has his wallet out. The products shown are also not ranged at a higher price. This process can backfire as well. As the customer is ready for payment for the original product and if we show them other products, there are chances that the customer may get distracted and the final payment process is never done. As we all know that the check-out to payment ratio is mostly less, this decision and process should be carried out carefully considering different possibilities in mind. If we take Amazon’s check out process, it shows you what other customers bought with this same purchase. There are even instances where some additional benefits are provided if the customer does buy the product up for cross-selling. The benefits may be discounts or free shipping. To do this process effectively, brainstorming needs to be done that which products naturally pair well, like coffee and donuts?
like to take advice of the people and want to be the bosses of their own when it comes to buying a product. Moreover, due to multiple efforts of push marketing earlier, it is difficult to gain the trust of the customer and suggest a product. Thus, the platforms have come up with suggestions like; “People who have bought this, also bought” and so on. It helps users to get alert to products they didn’t previously know you offered, further earning their confidence as the One of the most important points is to track the data. Which of the products pair well for crossbest retailer to satisfy a particular need. selling? Which product pairs are a bad choice Cross-selling focuses on providing additional and don’t sell together? The type of people, their value to the customers, instead of limiting them culture and behaviour, their nationalities should to products they already know about. The key to also be taken into consideration.
MARKATHON
18
IIM Shillong
Box me in, if you can
1)
When the world celebrates big data, an insight on why storytelling still holds sway: “The best use you can put Big Data to is to give yourself an inspiring starting point, a startling insight that gives you the beginning of the thread with which to weave the ocean-wide net.” Link:-https://goo.gl/NQG8N7
2)
Designing for a new Indian identity
There has been steady ascendance of a large new segment of citizens who are defined by their strong ‘us first’ and anti-elite ethos. They have risen out of an uneasy pluralism that they believe offered them a raw deal. Link:- https://goo.gl/ynCmwy
3)
Thomas Barta: Ogilvy’s rebrand reveals an ad industry in confusion
Agencies, like brands, need consistency. Agencies used to have access to the C-suite within brands but that’s no longer the case. It’s time for agency leaders to step up and rebuild agency C-suite relevance again. Link :-https://goo.gl/FsAZqE
4)
Are brand mascots a dying trend?
Brand mascots belong to a time when products used to be sold on trademarks. While there is no empirical data to prove that mascots might be a dying trend, it is quite likely that fewer brands today are investing in creating brand mascots than before. Link :- https://goo.gl/XRxVtw
5)
How to Stop Discounting
Discounting is the curse of the B-to-B sales world. Sales reps do it all the time. And it wreaks the bottom line. Key causes of discounting are failure to demonstrate value and prematurely pushing for a decision. Link :- https://goo.gl/ewnVpM
By aishwarya tiwari | IIM Shillong Ogilvy Rebrands Itself After 70 Years With the motto of beginning a “New Chapter”, Ogilvy announced the agency’s refounding and new mission to serve as an integrated creative network that “Makes Brands Matter.” This was accompanied by changes in the logo of the brand. Evolution of Ogilvy: 1948: Hewitt, Ogilvy, Benson & Mather 1953: Ogilvy, Benson & Mather 1964: Ogilvy & Mather 2018:Ogilvy The integrated Ogilvy brand brings together three distinct units of OgilvyOne, Ogilvy & Mather Advertising and Ogilvy Public Relations along with various company subbrands and specialty brands under a single, unified group.
OYO to expand into China After operations expansion in Nepal and Malaysia, OYO Hotels announced its foray into China with a strong focus on strengthening its hotel chain there. It has initiated acquiring over 11,000 exclusive rooms in 26 cities including Hangzhou, Xian, Nanjing, Guangzhou, Chengdu among others. “With this launch, OYO Hotels is all set to substantiate its leadership in the market while working towards its mission of bringing great living spaces in the country in the form of well-designed small hotels while introducing best-in-class training and education in the sector,” OYO said.
MARKATHON
21
IIM Shillong
Instagram launches new app for videos Taking on TV as well as YouTube, Instagram revealed its video platform IGTV in San Francisco, at an event attended by web celebrities like gamer Tyler Blevins, also known as Ninja, and Lele Pons, who has 25 million followers. The platform can host up to an hour long videos. Creators take their followers from Instagram to their new IGTV channels. IGTV was built because longer videos are not something people typically want on the main app, where videos are limited to 60 seconds Flipkart gets ready to take on Amazon Prime with its own loyalty programme Flipkart is bringing back its loyalty programme. According to sources, $173 million has been set aside for this programme for the next three years. Internally being called ‘Lock-In,’ the programme is expected to offer Flipkart’s ‘loyal customers’ faster and free deliveries, early access to deals and other privileges across its group companies including Phone-Pe and Myntra once a customer hits a certain threshold of purchases.
MARKATHON
22
IIM Shillong
digi-tally
july 2018
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Articles are invited
“Best Article”: Jigyasa Jain & Anumula Sreenath | GIM 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 25th August, 2018. Please send your entries marked as <ARTICLE NAME>_<SENDERS’ NAME(S)>_<INSTITUTE> to markathon.iims@gmail.com.
MARKATHON
23
IIM Shillong