“The message is clear that the ‘consumer’ is the king”, said Mr Narendra Modi as the longdelayed GST Constitution bill came into implementation. GST has been the Talk of the town for a while now, but that’s not the only thing that’s trending! A lot has happened in the month of June. Google has been fined by the EU, UltraTech Cement acquired Jaypee Cements and became the largest player, McDonalds had to shut down stores in Delhi, while the Government decided to privatize Air India. But the most exciting event of the month for us has to be the arrival of the new batch at IIM Shillong. On this note, we present to you, the June edition of the Magazine. Do brands really matter if it is just quality that we seek? Private Labels have seen a significant rise in Market share and have slowly crept into our households. Retail chains like Reliance, Big Bazar have introduced a number of products which have been accepted by the consumers and have become quite popular. This month’s cover story revolves around this topic about how private labels are eating up the market share of the National Brands and will become a threat to them in the longer run. This month we received numerous articles for Perspective and Eye2Eye, and choosing the best was a challenging task, but that’s something that has to be done. Dhruv Dhingra of IMT Ghaziabad and Rachna of IIM Ranchi will be debating on this month’s Eye2Eye topic, while
the articles of Suraj Kamath of SIESCOMS and Shivangi Singh of Amity University have been selected for the Perspective section in the Magazine. The former talks about Contact Marketing and how it is not only restricted to acquiring customers, while the latter has shed light on using the principles of Neuro Linguistic Programming in Marketing. In the Vartalp section, this month we have interviewed Mr. Harish Bhat. He is the Brand Custodian of Tata Sons and the Chairman of Tata Global Beverages Ltd and Tata Coffee Ltd. He also serves as a Director on the Boards of other Tata companies including Titan, Trent, Starbucks, Infiniti, Tata Unistore and Tata AIA Life Insurance. Mr. Bhat talks about his newly launched book “The Curious Marketer” and shares his insights on a vast array of subjects. And as usual, we have got for you our regular sections. In Addicted, we discuss how Volini’s new advertisement touches the audience’s hearts by emotionally appealing to them, while at the same time Dove misses out as the advertisement has failed to convince the consumers. For the Brand Story this month, we have decided to discuss about not just a single brand, but an entire category, i.e. Flavoured Water. In Logo-isitc this edition, we see the journey of the logo of SAAB Automobiles, and to keep you updated, we bring to you Top 5 reads of the month. There’s a lot more from us in the Magazine, which we hope will keep you intrigued. So enjoy reading the edition and do write back to us regarding any matter that you wish. Cheers! Team Markathon
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Andar Ki Baat
Perspective
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04 Cover Story
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The age of Contact Marketing Suraj Kamath| SIES College of Management Studies Using the principles of Neurolinguistic Programming in Marketing Shivangi Singh | Amity Institute of Behavioral and Allied Sciences
National Brands Vs Private Labels
Archita Ahuja Singh | IIM Shillong
Eye 2 Eye
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Digital Marketing is all about numbers and does not guarantee actual engagement with the brand beyond those views, likes and shares
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Vartalaap Mr. Harish Bhat
Brand Custodian - Tata Sons Chairman - Tata Global Beverage Ltd and Tata Coffee Ltd.
Dhruv Dhingra
Rachna
IMT Ghaziabad
IIM Ranchi
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Interviewed By::Raghav Dhanuka | IIM Shillong IIM Shillong
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Andar Ki Baat SpeciaLs
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Logoistic
SAAB Automobiles Arnav Khanna | IIM Shillong
Top 5 reads of the month 27 Articles which you just cannot afford to miss
AD-dicted
Catch & Miss advertisements of the month Ravitej Vadlamani & Suman Sourav | IIM Shillong
Marketing Gyan
Brand Story 21 Flavoured Water Raghav Dhanuka | IIM Shillong
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Updates
Fresh from the Marketing World Suman Sourav | IIM Shillong
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The Age of Contact Marketing By Suraj Kamath SIES College of Management Studies, Navi Mumbai
“Customers don’t measure you on how hard you tried, they measure you on what you deliver”
IC
ntroduction
ontact marketing is a blend of marketing and selling techniques to gain access to premium prospects and form strategic alliances. It is about establishing right long term relationships with bigger customers through an effective value proposition. Such techniques are foreseen as a long term strategy by any business.
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perspective How is it done? It is a common frustration for any marketer as to how to reach VIP prospects. When deals are going to be big, they are going to be tough. The focus is on micro marketing and is often value driven. You have to treat your prospects with
royalty. Some techniques used by marketers to reach VIP prospects are: •Exchanging cards during summits and conferences. •Use of professional media like LinkedIn. •Use of contacts of people who know VIP prospects. •Inviting them to conferences organized by the marketer’s institute or organization. •Use of thoughtwares on industry trends and sectoral impacts which may address a business problem of the senior management. This can be leveraged by posting such assets on the marketer’s website and through social media marketing. The personal touch We stay in the reign of the VUCA world which is volatile, uncertain, complex and ambiguous. Clients demand immediate gratification. The essence is to give clients a feel of the product or service. The impact made reflects customer satisfaction and long term retainment.
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Example of Fraport Aviation Services: Passengers using VIP Service are greeted at a private VIP parking lot and escorted directly to the VIP lounge, bypassing the terminals. They can enjoy their stay at the airport in the elegant ambiance of the lounge area, including all amenities, gourmet food and fine beverages.
Building Partnerships Partnerships help to serve customers better. Example: A customer visits a salon who has partnered with a coffee vendor. He gets a coffee before the haircut. The outcome is that the customer is happy and he comes frequently. Same rule applies to VIP prospects and they dwell on experiences. Contact marketing requires a marketer to possess: •Good domain knowledge and utility of product or service. •Knowledge of customer relationship management tools. •Excellent communication skills. •Good networking and relationship building techniques. •Effective and impressive pitching styles to the right target audience. Different Perspectives 1.Product Company For a product based company, contact marketing becomes vital through the appropriate use of sell-
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perspective ing tactics. Any marketer must focus on explaining the utility of the product to the VIP client. As clients are prestigious ones, they will pay more if they find the product useful. If such an investment helps a company ensure better productivity and revenue generation, the product ought to be sold.
Customer Experience Management companies like Medallia have used benchmarking metrics like Net Promoter Scores to gauge client satisfaction and brand loyalty.
Artificial intelligence and neuroscience marketing have helped businesses understand their clients better. CXOs look for solutions which In such cases, after sales services should not be are robust, consistent and value driven. Contact marketing using technology helps businesses neglected under any circumstances. to understand client requirements effectively.
Example: DELL supplies laptops to leading companies. They ensure that the senior management doesn’t make a decision to switch to competitors. It is so because of the excellent quality provided which helps the firm to generate revenue. 2. Service Company Measuring service quality is difficult as they are intangible. However, value creation and sustainable brand equity leads to winning premium clients. Example: Let’s take the case of audit firms who win prestigious clients. Role of Artificial Intelligence and Technology Cognitive insights and technology have paved the way to gain access to key contacts. Holistic client relationship mapping and analytics have helped marketers deliver turnkey solutions amidst cut throat competition.
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Cloud computing, Big Data analytics, internet of things, customer service assessments and sales force systems empower salesmen to lookout for prospective VIP clients and leverage opportunities. The way ahead Contact marketing is not just confined to acquiring clients. It is about creating opportunities with existing prospects by providing cost effective solutions and nurturing long term relationships. Any marketer in this new age era will always look at diversifying portfolios. At the same time, client retention is of utmost importance. Thus, there is a paradigm shift from the volume to value game. Customer experience and centricity is the secret sauce for retention. Hence in this era, it is rightly said that “Customer is the King!”
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USING THE PRINCIPLES OF NEURO LINGUISTIC PROGRAMMING IN MARKETING By Shivangi Singh Amity Institute of Behavioral and Allied Sciences
When Dr. Richard Bandler and Dr. John Grinder con-
ceptualized Neuro Linguistic Programming or NLP in 1970s in California it was unforeseen that in a few decades the principles would be used in advertisements, counseling psychology, self help and political campaigns. The skeletal idea that consumers spend a major chunk of their lives reacting to situations and making judgments at a subconscious level was explored by Malcolm Gladwell in his bestseller “Blink”. With its primary focus on communication, NLP training programs are in vogue with companies focused on increasing their sales and improving interpersonal communication in teams. Espirit Systems Consulting Inc. of West Chester, PA is a prime example of the rewards reaped in by a company when it procures NLP training for its employees since inception. It is not a mere coincidence that one tends to recall the complete ad jingle upon hearing it half way through. The message is encoded in our minds by impactful programming which is known as NLP. Breaking down the term to its three essential sub systems, we have ‘Neuro’ which relates to our cognitive functioning, ‘Linguistic’ which deals with language encompassing its verbal and non verbal components and ‘Programming’ which integrates the two and intertwines the collusion successfully in our mind. By this, NLP is the practice which leads to effective communication and messaging strategies, verbal as well as non verbal, which lead to: •Increased self confidence •Better relationships •Improved communication
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•Enhanced mutual understanding •Empathy •Rapport •Team building •Positive body language •Impactful messages It would be redundant to point out that all these components make for the essential ingredients which would lead any marketing and sales team to success. The dynamic interplay between cognitive functioning and language impacts our mind, body and behavior and this creates NLP principles which when utilized create efficient marketing strategies. 1.NEUROMARKETING: There are cognitive biases built in all of us and an advertising campaign can either work with them or against. Neuromarketing is an emerging field which studies how the human brain reacts to different marketing stimuli. The process takes place through cognitive mapping. According to neuromarketing expert Ann Hadley, the following six make for a successful marketing campaign: •Evoke a gut reaction •Images •Faces •Colors •Names •Need for Belonging 2.SENSORY APPEAL: There are primarily three types of learners: Visual, Auditory and Kinesthetic. The classification is based on which sense organ is used best for infor-
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perspective mation assimilation. An effective marketing strategy maximizes the involvement of the consumers’ senses. The better integrated these three kinds of learning are with the advertisement campaign, greater are the chances that it shall stay in the customers’ mind and convert into good sales figures.
ing to vary one’s behavior till the desired outcome is reached. This NLP principle advocates adaptability – a crucial tool in marketing and sales. Being flexible is to be willing to lend a ear to the consumers’ needs. If the aim is to meet sales target and strategy A, B or even N isn’t working then a successful sales person should not ideally shy away from employing a novel
3.BEGIN WITH THE END IN MIND: The famous quote by Stephen R Covey in “7 habits of highly effective people” is akin to the “Achieving” principle of NLP. There is a higher probability of achieving an aim if it is crystal clear. In order to be deemed substantial, a journey must conclude in a destination. Through the practice of several life coaches and highly motivated salesmen, it is fairly comprehensible that once the target to be achieved is set in stone, the practice wheels start churning and hence, the proverbial bull’s eye is hit.
approach. In hands-down scenarios, the principle demands judicial use of one’s sensory acuity. 6.MIRRORING AND MATCHING: Psychologically, homo sapiens have an inherent need to belong to a social group on the basis of prima facie similarities. The behavioral aspect which follows from this psychological principle, results in mirroring of body language when two individuals find a mental or emotional connection with each other. This is one of the chief body language cues which is studied to analyze the relationship between individuals. When used in sales, this leads to the establishment of instant rapport with the customer. Mirroring leads to matching and the interaction beautifully and seamlessly morphs into the memorable: Game, Set. Match.
4.META-MODEL: Wonders are worked when sales strategy is matched with the customers’ buying strategy. Meta model of NLP encourages its practitioners to dwell deeper into a client’s rejection. Enquiring “how exactly” or “what exactly do you mean” sends a message to the client that the sales in-charge is open to change in current product or strategy and willing to listen genuinely. Such clarifying questions prove to be game changers by aiding in filling the dots with missing information or content.
7.ANCHORING: In the heart of a good story is relatability. . Once the audience finds its connect with a movie or a book, it is sold once and for all. The principle of Anchoring is this association of an internal experience with an external stimulus which triggers and emotional response in an individual. The three types of anchors are: stacking, collapsing or chaining and they may be
5.FLEXIBILITY OF BEHAVIOR: It is difficult to elude success for long if one is will-
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natural or deliberate. Stacking Anchors strengthen the intensity of the subject’s internal experience associated with the stimulus while the opposite task is accomplished by the Collapsing Anchors. On the other hand, Chaining Anchors are used to lead from an undesirable to a desirable state of mind. In context of marketing, Stacking Anchors include advertisements raising social issues, Collapsing Anchors would mean advertisements or marketing gimmicks which aim to break stereotypes or create shock value while Chaining Anchors would be utilized in a pitching situation to convert a rejection into a posi-
guage and micro-expressions are analyzed for the same reason. One doesn’t need to be an expert on these topics to pick up basic cues in an inter-personal conversation as mostly it can be intuitively felt. Whether the client is interested to closed-off to a sales pitch can be spotted from a distance. Without a firm belief in one’s product, no sale is possible. If one is only faking it, the body would lie at some or the other point and the investor or customer critically analyzing the situation is less likely to be willing to grant a second chance.
tive response. 8.RE-FRAMING: As per Daniel Goleman’s bestseller “Emotional Intellignece” the key to finding the silver lining in a negative situation is to re-frame it. The choice of words is pivotal. The process of Re-Framing is used in a similar fashion in NLP. When a problematic behavior is presented with a positive intention, this principle advises to focus on the internal process leading up to the behavior so that it can be re-framed to match expectations. The aim is to establish choices for positive behavior with positive intentions. While losing out on well-intentioned clients or investors, startups could use this strategy by choosing the correct words to achieve the desired client/investor response.
10.POSTIVESELF-TALK: When America rang in unison “Yes, We Can” the world chimed in euphoric chorus. There is power in positivity. According to NLP trainers, repeating encouraging words to self in front of mirror as a routine can have magical impact on performance and selfconfidence. How one perceives oneself is crucial in sales. Unless the internal belief system is strong no amount of smiling or body language positivity can help. This seemingly basic NLP principle pays much attention to detail as its successful practice involves paying attention to the smallest words one chooses for oneself and in thought process. From the tiniest to the most apparent, self feedback must comprise only of positive strokes.
Although most sales professionals use these prin9.MIND-BODY SYNCHRONIZATION: ciples unconsciously, the art and science of Neuro What the mind thinks, the body mirrors. Body lanLinguistic Programming provides it structure and brings it to conscious use. ychology, neuroscience
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National Brands Cover Story Vs Private Labels T
he chances are that you have bought a private label product sometime in your life. It could be a bottle MARKETING of ketchup or a hand-wash at a retail store. Private BUDGET label products include all the merchandise sold under a retailer’s brand. It can be retailer’s own name or name created by the retailer exclusively for itself. Sometimes, a retailer may be a part of a wholesale group that owns the brands which are made available only to the members of the group. In India, private labels are becoming a major component of retailer’s long-term strategies for product development and sales. Most of the retailers are now investing towards their own private labels as the advantages provided by the same are numerous. Understanding the gap: The retailers are the first point of contact for the customers, they understand
By Archita Singh
the buying behavior and needs of the customers. They know the expectations from the national brands and are able to understand the gap that the national brands are not able to fulfill, hence they provide those products which the other brands are not able to, thus filling the void.
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Pushing their own label: Retailers are able to push the demand more for their own product. Most of the retailers like Reliance and BigBazaar provide better shelf placement to their private labels thus increasing the visibility. The salespersons employed at these retail stores push the sales for these private labels by explaining the benefits of buying a quality product at relatively lower price. Follower strategy: The national brands are the leaders in terms of the research and development, innovation and the private labels play the follower strategy thus reducing the costs in terms of advertising, R&D, packaging and promotions. They can focus more on the loyalty programs and enhance the customer base. Liberty to experiment: One of the major advantages that the private labels have is in terms of experimentation. They can experiment and manufacture products and then get them off the shelf without much notice. However, if the national brands were to follow the same strategy, the impact on the brand as a whole could be massive.
in online market. E-commerce has managed to organise this unorganised fashion, although they may not inspire customer loyalty with its quality in the way major brands do. This is where private label will give an upper hand for Flipkart, with absolute control over quality and pricing. Women’s ethnic wear has a few renowned brands, and Flipkart is focussed on this category.
Nykaa: Mumbaibased beauty ecommerce firm Nykaa expects its private label revenue contribution to double in financial year 2017-18. The company ventured into private label products with the launch of its nail paints in November 2015. The private label brands earn margins of 40-60%, which is 10-20% more than what the company earns by selling branded products on the platform. Since last year, Nykaa has also launched its own line of kohl, lipsticks and is looking to introduce more products in at least 10 beauty categories, such as eye makeup, essential oils, among others. Scope of higher distribution network for Private Labels: A reE-commerce and Private cent article by the FuLabels: Th e-commerce ture Group’s CEO Mr. businesses are not shy in Kishore Biyani, talked getting into the private about the planning to labels. E-commerce giant, push the private labels. Flipkart has launched its The Future Consumer first fashion Private label; Enterprise Ltd(FCEL), Divastri, that includes 1,500 styles focused ex- Future Group’s consumer packaged goods unit, clusively on women’s ethnic wear. This is part of launches a new brand, category or product ev‘Flipkart Smartbuy’, an umbrella brand that was ery two weeks. It plans to launch Kosh, its oats launched in December 2016, to sell in about 50 brand, which will be available in other retail categories, including consumer electronics and stores including Trent Hypermarket Ltd’s Star home category. But fashion is its big bet. Bazaar and in general stores in 12 cities apart from Future Group’s own network of retail Unbranded fashion will remain the largest chunk chains. This collaboration could form the future
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of Private Labels thus giving a strong competi- let cleaner under the same label? Will this astion to the National Brands. sortment of products create a huge impact on the brand in terms of its credibility? Hence, the Why National Brands? retailers will have to gauge the impact of such Brand Strength: The national brands have been strategies and know where to draw the line. in the field for years and decades now. They Customers feel that the private labels cannot possess a strength which the private labels will provide the same excellent quality across all take years to inculcate. The private labels also segments. Stretching the label too far can impact lose out on multiple parameters when it comes the retailer in multiple ways. to national brands. Bias towards the brand: With the increase in the Double Income No Kids as well as Double Income With Kids population, the demand for national brands is huge. The lifestyle of such families does not permit them to spend more time on experiments, hence they prefer to play safe and purchase the national brands. The quality that the national brands provide is incomparable. Just a touch of the product can significantly tell the difference. Higher aspirational value: People look up to national brands and aspire for the same. When the income of the consumers increases, they switch to national brands because they now have the purchasing power to but those products and on A very successful business model without the the other hand it also defines their status in the need for Private Labels: D-Mart society. National brands are attached with so- It’s strategy is markedly different from nearly cial status and give the people the feeling that ‘ every other Indian retailer. While other compaThey have arrived’. nies have expanded quickly into multiple segValue for retailers: Retailers cannot discard the ments with differentiated retail chains, D-Mart’s fact that National brands are an essential part of sales mix is largely limited to food and grocerthe store. A store which does not offer a wide ies. Categories like high-end electronics, jewelvariety of products which also include the flag- lery and watches – which companies like Reliship national brands may lose out in the race ance have forayed into and which make up as and customers may switch stores. The custom- much as 25% of Indian consumer spending – is ers need those national brands on which they something the company stays far away from. can rely completely and at the same time com- The company also avoids the potentially lucrapare their private labels with. tive but usually troublesome practice of creatEconomic conditions: The economy of the ing private labels or brands, something retailers country plays a major role in the sale of private like Future Retail and Trent are currently doing labels. During recession customers switch to in India. Damani thrives on low margins and, the private labels thereby increasing their sales. to a certain extent, D-mart is built around this However, the sale of national brands remains philosophy. Industry executives at rival compastable when the economy is performing well. nies call it the “three-step business model”, very So, though the sale of private labels is economy- similar to that of Walmart. oriented, the national brands do well for most “Start with low-cost products that consumers of it. need on a daily basis and that you can sell for Image dilution: But the question is, how far can slightly below MRP. This allows you to rack the private labels actually go in terms of brand up a great inventory turnover ratio. Then use extension? Can you sell a food item and a toi- that quick inventory turnover to negotiate bet-
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ter prices with wholesalers which in turn allows you to support your low prices,” a top retail executive, who declined to be identified, told The Wire. What should the National Brands do? •Concentrate on core competency: The national brands have been around for years, they must be doing something right which has helped them stay in the market. Hence, they should concentrate on what they know the best. •R&D: National brands have an edge over private labels in terms of R&D. They have the capital and MARKETING the manpower to BUDGET research and develop innovative products that the private labels cannot because of less resources and cost cutting. •Protect the brands through IPs: Intellectual Property is the upcoming segment that the brands should leverage on. They should protect their brands against any kind of counterfeiting so that they retain their originality and strengths. •Exploit sales promotion strategies: National brands have an edge over private labels in terms of sales promotions. They can invest more resources in advertising and promoting their products. They cannot stop the private labels from copying their product, but what they can
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definitely do is, promote more and create a stronger presence in the market. •Don’t rest on your laurels: No doubt that the National Brands are very well established and have earned their own name, but in the highly competitive market, it is of utmost importance to keep innovating and fighting the competition. The battles won in the past can only take you ahead in the short run, but in the long-run, evolution is the key. A key point to be noted amidst this discussion is that, Are the private labels good for some National Brands? The answer could be positive, if we understand the concept of fighter brands. Most of the times, National brands create fighter brands to compete with other well known brands in the market, operating in a completely different target segment. This is done to ensure that the National Brand retains its share and customers in the market. Now, what the private labels do in this regard is that they play the role of these fighter brands which helps the National Brand to retain its market share. The manufactured brands should take up the responsibility of taking Private Labels very seriously. Just because you’re paranoid doesn’t mean they’re not out to get you. In a nutshell, that describes how manufacturers of brandname products react to competition from private labels.
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VARTALAAP Mr Harish Bhat is the Brand Custodian of Tata Sons and the Chairman of Tata Global Beverages Ltd and Tata Coffee Ltd. He also serves as a Director on the Boards of other Tata companies including Titan, Trent, Starbucks, Infiniti, Tata Unistore and Tata AIA Life Insurance. Mr Bhat joined the Tata Group as a TAS probationer in 1987. In the past three decades he has worked in several key positions including stints as MD of Tata Global Beverages, COO of the Watches and Jewellery businesses of Titan. He has been a major force in the restructuring and turnaround of the jewellery business and the Tetley acquisition. He has been a part of many brand launches and he has nurtured many power brands of the group. Mr. Bhat graduated from IIM Ahmedabad in 1987 with a gold medal for scholastic excellence. He is also a BITS Pilani alumnus. In 1997, he won the Chevening Scholarship for young managers, awarded by the British Government. He has strong professional interests in strategy, consumer behavior, business economics and business history. He has been a member of the Consumer Insights Panel of the Economic Development Board, Government of Singapore. Mr. Bhat is passionate about writing, and is a prolific writer who contributes regularly to various national publications. In 2012, his first book was published by Penguin. Titled “Tata Log”, the book narrates stories from the modern history of the Tata Group, set to an overarching theme. His second book, titled “The Curious Marketer” has been published in 2017 by Penguin Random House. This book discusses why curiosity is very important to marketers, and how they can improve their curiosity quotient. ThisVartalaap edition revolves around the themes discussed in this book and has much to offer in terms of learning, stories and decades of marketing experiences from the storyteller himself.
An Interview with Mr. Harish Bhat
Brand Custodian - Tata Sons Chairman - Tata Global Beverages Ltd and Tata Coffee Ltd.
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Out of curosity comes everything. This book has many simple,interesting stories about what curosity can achieve
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influence on shopping behavior. So does lighting in a store have an impact on the consumer’s choice. In a food and grocery store, or in a café, I think the ambient aromas and smells also have an impact on a consumer’s shopping behavior, also on the amount of time the consumer spends within the store. No wonder so many cafes carry Fortunately, my curiosity is intact. I am a such wonderfully warm aromas of gorgeous very curious person – curious about people, coffee, which I simply love. food, places, books, virtually everything. I am conscious that there is so much which I Markathon: You have written many esdo not know. While I may have thirty won- says about different festivals and events derful years of marketing experience behind and their importance in India. Throughme, I am aware that 90% of all data in this out the past three decades we saw a lot world today has been created in the past of cultural factors shaping a marketing two years alone. So unless I am curious, campaign, be it the Pongal whitewash theme by Asian Paints or gifting a Godrej will I not get hopelessly outdated ? Storewell to a bride on her marriage. Sometimes, my experience comes in the How much of that has changed now? Is way, and whispers to me – “Harish, you India moving towards a low context culhave done all this before, there is nothing ture slowly, where cultural motifs are new to learn out here”, and then I must do no longer inherent in a marketing commy best to brush it aside. I try to retain a munication? childish sense of curiosity, when I react to new ideas. In fact, my book “The Curious No, not at all. I think cultural events and Marketer” is a product of this curious child motifs are very, very important to us. I stay in Mumbai, and every year I see the vibrant within me. colours and motifs of the Ganesha festival Markathon: In the essay titled ‘How all around me, with everyone – very young to Music Can Shape the Marketing Dance’ very old, men and women – participating in you discuss how playing music in stores the festivities with the same zest and vigour. can influence consumer choice. It is a I go to Kolkatta, and I see the same fervor good case of the classical conditioning around the Pujas. Similarly, with Pongal in by Pavlov used for priming customers in Tamil Nadu. We are a high context culture the mood for a purchase. Can you think in India, and I think we will always be. of any other such mediums/tools which can have a subconscious influence on There are new kinds of festivals which are now seeping into our lives (witness Valenshopping behavior? tine’s Day, Father’s Day, etc.), but these are Yes of course. Just like music, I think co- adding to the existing, deeply rooted cullour of packaging also has a sub-conscious tural occasions. The same young boy who Markathon: Mr. Gopalakrishnan mentions in the foreword that a person’s curiosity declines after attaining a peak in terms of knowledge. Are you less curious now than you used to be thirty years ago? Does that make you think or react differently to new ideas?
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looks forward eagerly to Valentine’s Day Markathon: In the essays on “looking at also celebrates Holi, a few weeks later, with old products with fresh eyes” you have the same abandon. discussed some innovative strategies and ideas that marketers can leverage to Markathon: Storytelling is an important brand existing products and commodities aspect of marketing. In all the essays such as banana chips, honey, umbrellas where you talk about new places serving and socks. You write about the need to as hotbeds for new ideas, you mention liberate oneself and rebel against conserhow marketers can learn from museums vative social codes along with stimulaand guides, curators and tavern owners tion and contemplation being one of the when it comes to presentation and cu- reasons behind the rising popularity of ration of content and educating people. colored socks. India had a very rich oral culture of storytelling and folktales but do you think •So how exactly do marketers identify that the marketing of products and ser- and anticipate these needs and come up vices in India has lived up to that heri- with these products? tage and how can that gap be filled? •In the case of the colored socks, how did I think marketers everywhere, including In- their association with liberation develdian marketers, have forgotten the wonder- op, was it because of the consumer who ful art of storytelling. There is this new wave looked at them differently or the marof digital and data which has swept market- keter who came up with this product as ers over the past few years, and, in addi- a solution to the existing problems and tion, there is the inordinate focus on analyt- needs? ics, numbers and research that marketers focus on. All these left-brained obsessions •How much of a role will colors play in have taken away from the focus on brilliant, shaping brand identities in the future? powerful, simple storytelling, which is, in essence, a right-brained pursuit. The best way to identify and anticipate consumer needs is to be very curious about the In a country which is suffused with beauti- lives of consumers, and to be equally curious ful and beguiling stories from the Panchat- about all the existing products and services antra, Mahabharat and Ramayana, where that you see around you. When you marry have the great storytelling marketers van- these two strands of curiosity, you will find ished ? I would lay part of this blame on our new product ideas that emerge. Coloured MBA schools as well. They offer marketing socks represent the need that modern male students excellent courses on market re- executives have, to wear something colourful and bright alongside the staid blue and black dresses that they are often comMarketers everywhere, including pelled to wear to office.
Indian marketers, have forgotten the wonderful art of storytelling..
search, marketing analytics, media planning, etc. I am yet to come across similar courses on storytelling, or on how marketers can powerfully leverage Indian heritage.
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So there was this latent need, and some smart marketers in a company called Happy Socks adapted the humble sock to serve this need. Colours play a very significant role in shaping brand identities, now and in the future. Please do read the chapter titled “The psychology of brand colours” in my book, I am sure this will trig-
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marketing tries to target sets of people with similar tastes and lifestyles? Could you narrate some instances of certain Markathon: People and Books serve as products at Tata that have leveraged great sources of inspiration for mar- these small data insights? keters. You have obdata is served and written I would urge marketers to be curi- Small very insightabout the self-proous about the North East, as they ful, though motional and talkof course it ing skills of Mushould be about every region of is not as stahammad Ali, the our vast and diverse country. tistically valid imagination of Xeas big data. rxes Desai, the litMarketers should use small data to ferret erature by classical playwrights such as Shakespeare and how they can con- out new insights, and then they can always tribute in building great brands. Could consider how to validate such insights using you share with us instances of some of more reliable formats of consumer research your brand building exercises, product – either quantitative research, or, in today’s launches, and strategic decisions at day, big data and analytics based research. Tata companies that have been inspired by these personalities and their works? The Tata Ace, which has revolutionized the commercial vehicle segment in India, ilXerxes Desai has inspired virtually every- lustrates this point. The original idea was thing we have done at Titan, which as you based on sharp consumer observation of know is a Tata Enterprise. His sharp eye for the kind of transport vehicle that small town the aesthetic, his obsession with extraordi- business people need, both functionally and nary design and advertising, his constant emotively. This insight was of course thererestlessness – these are traits that Titan after validated through extensive studies continues to exemplify today. For instance, undertaken by Tata Motors, the Company when we launched new advertising cam- behind this brilliant innovation. paigns for Titan Raga watches or Titan Edge watches, Markathon: We have seen cases on reI would always ask myself – would Mr. Desai incarnation of brands in the essay on be delighted with this film or would he throw “Comeback Products”. Nokia has recentit out ? Similarly, the designs of Tanishq ly come up with 3310, thus striking the jewellery collections, and the Tanishq stores nostalgic chord. How long can nostalgia themselves, are so beautiful and unique to- serve its purpose without getting outdatday, in some measure because they take in- ed? spiration from the founder’s vision that Mr. Nostalgia plays its part in influencing conDesai has left behind. sumer choice, but nostalgia alone is never Markathon: In the essay titled “God of enough. The product you are bringing back Small Data” you talk about the impor- to market should be relevant and compeltance of insights achieved by closely ling, it should serve a specific consumer studying everyday lives of people and need of today, if it has to be successful. this small data serving as the building One excellent example of an Indian Comblock for big data. How reliable is small pany that has smartly leveraged nostalgia, data and how can individual, unique ex- even as it has launched a slew of brilliant periences contribute given the fact that products under a strong brand umbrella, ger new ideas on this subject, in your own mind.
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line to be drawn here too, between being cuis Royal Enfield. So many age-old brands rious and being intrusive. The broad prinof yesterday have this same potential, but ciple I recommend here is that my curiosity they need to be delivered through a smart should stop where your nose begins. time machine which transforms them for today and tomorrow. Markathon: The chapter on “3-D MarketMarkathon: In the essay titled “What’s ing” talks of the 3Ds (Digital, Data and in a customer’s name” you talked about Design) which are becoming increasingconsumers appreciating marketing ef- ly important skills of new age marketforts targeted towards personalized ex- ing and you hint at managers becoming periences such as printing their names “babes in the data woods” if they do not on customized versions of their products. adapt to this environment. How can manHowever, nowadays many data centric agers overcome the natural tendency to companies such as Amazon have been be inclined towards one of the two worlds using personal data for the purpose of - the yesteryears of boredom, encyclopesuch customized dia, keen customer targeting which observation, small may give a sense data vs the current of intrusion of era of google, techprivacy to the nology, speed and customer. Where big data? Is it posshould the line sible to be competent be drawn? in both or is there a conflict of assoThis is a fine line, ciation/lifestyle/inyet a very importerest between the tant line. To begin two worlds? Do you with, let me say think that the abilthat personalised ity to come up with products and serinsightful consumer vices will sustain observations has deand prosper only creased or will take if they serve a real a different route in consumer need. this digital era? Personalization for the sake of doing Outstanding marketso, just because ers in today’s enviyou possess the ronment need three data that enables brains. A left brain you to personalize, just because personal- that enables them to address the world of ization is the current fad, is mere tokenism, digital, technology and data. A right brain and consumers will eventually reject the that enables them to focus on the creative same. The use of personal customer data, faculties of imagination, storytelling and dethe entire area of data privacy, is coming sign. And a third brain, which helps synunder increased scrutiny by regulators and thesise both these worlds, to create brilconsumers alike. I foresee many debates in liant products, services or content which this space over the next few years. wows and powerfully engages consumers. I agree that the same individual may not Insofar as curiosity goes, I think there is a have equally powerful hemispheres across
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all these three brains. Hence, modern marketing teams need to be composed of members who collectively bring all three brains to the table. We need sharp analytical marketers, and imaginative storytellers, working together closely in the same team, creating the magic. Markathon: We have rarely seen any North-eastern cultural setting for an Indian advertisement and there hasn’t been much effort on the part of marketers to focus on this section of the country in terms of products as well as communication. Also, we see many regional variants of ads for other parts of the country but hardly any regional version for the North-east. What are your views on this?
marketers can interact with this region, and by encouraging many more consumer research projects in this part of the country. Markathon: Why should marketing professionals and students of marketing read your book “The Curious Marketer?” Curiosity is essential for every marketer. As Steve Jobs has famously said, “Out of curiosity comes everything”. This book has many simple, interesting stories about what curiosity can achieve. It also provides a practical guide on how a marketer can develop his or her curiosity.
So if you want to enhance your own curiosity, reading this book can be a good starting point, I think. And please do write back The North-East is a very important market to me (bhatharish@hotmail.com) with your for so many product categories, and I agree views on curiosity and on this book. entirely with you that this region requires far greater and sharper marketing focus. For instance, for lifestyle categories such as garments and wrist watches and many others, I think marketers can find new insights and trends in the North-East, because the people of this region are generally very stylishly attired, and fashion forward. I would urge marketers to be curious about the North East, as they should be about every region of our vast and diverse country. I think IIM Shillong, as the flagship business school of this region, can play a useful role here – by bringing marketers to these beautiful states more often, by publishing relevant thought papers on the North East, by serving as a nodal point through which
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eye2eye
june 2017
Digital Marketing is all about numbers and does not guarantee actual engagement with the brand beyond those views, likes and shares dhruv dhingra Imt ghaziabad
rachna iim ranchi
5600 clicks, 289 conversions,“10” phone calls-these were the numbers derived from the Google online marketing campaign, that I was a part of. We were granted 250 dollars to promote the business of our client online, for 21 days. The client, Fanhoots.com, is a website facilitating virtual betting, discussions and updates, relating to the arenas of Cricket and Football. Presently, the sole source of revenue generation for the website, is the advertisements attracted by it. The advertisements, in turn, move in direct proportion to the number of active users on the website. The metrics exemplify 5600 visits to the client’s website throughout our promotional period, with 289 of those visitors agreeing to sign up. And, the phone calls, mean 10 unique web surfers, availed the opportunity of calling the website operators and recommending the changes which could be made in various aspects of the site’s working, in their opinion. The phone calls, for me, are the real measure of brand engagement. A person may visit a website and decide not to sign up, or else, he may sign up, but may not turn up as a loyal user, and subsequently become dormant. But, suggesting changes in working translates to deep interest in the services of the client, making a strong case for loyalty. This also entails, that the user is feeling emotionally connected to the website and its services. Apparently, retention rate is highest among such users, which will obviously lead to revenue for the client. Concluding, brand engagement for me, is building emotional connect with the customer which translates into positive business outcomes, such as sales and profitability. And, in my opinion, this holds true for digital marketing as well. So, digital marketing can facilitate brand engagement. Only thing to remember is-“The numbers which earn, are the numbers which engage!”.
With the advent of digital era, the conventional marketing plans have taken a toss. They say the rules of the game has changed, people don’t do interruption selling anymore neither they bother their prospective customers by cold calling. In fact the magic of digital marketing is such that buyer will automatically find you, hence gone are the days of chasing the leads. Just invest in relevant content marketing and the right type of customer will knock your door. Just the idea of generating the whole revenue by digital marketing, sounds way too idealistic for other marketing channels to digest. Since most of the companies in today’s time need much more. Thus besides having a plethora of options to tackle measurability issues of marketing on digital platform, it is still not a wholesome solution on its own. The ultimate goal of any marketing exercise is to close a sale. Let’s have a look at what digital promises and what we expect from it. 1. The audience you attract towards your landing page, just gives you the number of readers who appreciate your article and the number of likes and shares, but the real engagement is still far from reality. What digital doesn’t ensure is the number and probability of paying customers 2. Digital marketing, no doubt has very large reach in terms of potential customers. Hence we spend heavily on content and online marketing to get a huge number of traffic on our websites. And ultimately treat all new visitors the same, the understanding of prospective leads and the way to prioritize them is missing. Not all followers of your twitter feed are going to read each and every of your tweet. So the constant search for qualification process. 3. Lack of trust and personal contact to build relationships matters in competitive and other markets for converting a deal. It might not hold its parlance in business to business transactions especially.
Topic for the next issue: “Is Permission Marketing the best way to earn the attention of customers?” Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 22nd July 2017. Include your picture (JPEG format) with the entry. Winners will receive a prize money of Rs. 500 each!
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By arnav khanna IIM Shillong SAAB is a Swedish automobile manufacturer brand that never made to the Indian market but had a cult reputation in the European markets. It was the sportier Swedish car maker when compared to Volvo. Many of us know SAAB by its iconic griffin logo, surprisingly this logo was never brought in by SAAB. It has a very interesting history of mergers, demergers and diversifications. Hold on, while we trace its logo lineage, because it is not simple as it might seem. SAAB Automobiles SAAB’s came up with the first prototype was the Ursaab in 1948. It had a radical design inspired with SAAB’s aeronautical ability and had the lowest drag coefficient than any other car. Its forst production car was SAAB 92. From 1949 until 1962, the company used the following logo . In 1964, SAAB board decided to produce larger cars and move from 2-stroke engines to 4-stroke engines. In 1965, SAAB changed its name to SAAB Aktiebolaget to indicate its diversification of programs. SAAB also created a new logo in which they used until 1969. SAAB-SCANIA Merger In 1969, SAAB merged with Scania-Vabis Trucks. Even though Scania had the griffin as its logo in its trucks division, until 1974, SAAB-SCANIA automobiles used the logo on the left. From 1974 till 1983, SAAB-SCANIA used the logo on the right. From 1984 to 1995, the company used the logo was designed by Carl Frederik Reuterswärd who commented: “The Symbol consists of a roundel inscribed with two circles, transposed to form a cylindrical band and create an impression of movement. Although each is shown in its own perspective, Saab and Scania are seen as a unit.” SAAB after SCANIA The companies spilt to form SAAB automobile and SCANIA AB Trucks and Busses. However, both the companies carried the logo into their products. Saab Automobile AB introduced the new corporate symbol of the red Gripen head and gold crown with the name SAAB in silver beneath it all contained within a blue roundel. The heraldic Griffin’s head – derived from the coats of arms of the Skåne and Östergotland counties in southern Sweden traditionally symbolises vigilance. SAAB’s Demise SAAB Automobiles AB is no longer there as it faced bankruptcy in 2011 and was acquired by a Swedish Chinese Consortium, National Electric Vehicle Sweden (NEVS). NEVS was initially allowed to the SAAB brand logo, but lost the rights when finances dropped in 2014. In 2016, NEVS declared that NEVS will be producing electric cars underpinned by the Saab 9-3 sedan platform. The latest logo for NEVS is .
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AD-dicted AD-dicted
december june 2013 2017 By Ravitej Vadlamani iim shillong
By Suman Sourav IIM Shillong
PRODUCT: Volini
PRODUCT: Dove
CATCH
POSITIONING: Real Beauty Bottles come in all shapes and sizes
POSITIONING: Being there, matters CREATIVE AGENCY: Lowe Lintas Delhi
YouTube Link: https://www.youtube.com/watch?v=xjZAwmwieeQ CONCEPT:
R
CREATIVE AGENCY: Ogilvy & Mather
The ad opens with content that peruses ‘being there, matters.’ It moves to the Mumbai airport, and a man is shown inside a taxi. As he experiences a congested driving condition, he escapes the taxi and begins running towards his goal. He contorts his leg and supposedly is in gigantic agony, however, declines to surrender. He limps his way towards his goal which is uncovered to be the end goal of a marathon. He has made it in the nick of time as he takes his telephone out to take a photo of his dad crossing the end goal. The pair meet each other and trade a ‘high five’ as the child compliments his dad for bettering his marathon time. His dad at that point spots his child limping. The film closes with the father applying Volini on his child’s foot and with the message ‘Every child who takes the pain to be there for their parent deserves a pat on the back.’
CONCEPT:
MISS
VERDICT: Catch Markathon believes that the ad is emotional and touches the audience heart strings. This campaign is one of Volini’s many initiatives to reach out to the evolving audience who have endorsed and trusted Volini. Brand felt that there was an interesting space around children who go the extra mile for their parents, those who take the pain to be part of their important moments. And the brand celebrates those that are committed to this. Volini helps in overcoming pain to create magical memories. The versatile mix of emotions makes the commercial engaging, endearing and a pleasure to watch..
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YouTube Link: https://youtu.be/CRiv2lgaX_U
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The advertisement opens up in a factory showing bottles of different shapes and sizes being made. A line “Real beauty breaks moulds” appears. The advertisement showcases the introduction of a new limited-edition dove body wash that comes in all shapes and sizes. We see the bottles going through the various processes in manufacturing and packaging and see them coming out in different shapes and sizes. There is a total of 6 variants in the shapes and sizes of the bottles. The advertisement ends with the line “Real beauty comes in all shapes and sizes”. VERDICT: Miss Markathon believes that despite the noble thought behind the ad campaign to counter the prevalent body shaming taking place in our society, the ad fails to have an impact. The attempt to draw a parallel between the shapes and sizes of toiletries and the body shape of women is a little far- fetched. If one if fat, should he/she only purchase a bottle that matched their body shape? No woman has ever felt insecure about her body by looking at the sleek figure of her body wash bottle, rather through this advertisement campaign women may now start to feel even more conscious than they used to before. The execution manages to do the excat opposite of what was intended and leaves a sour taste in the mouth of the viewers. It also serves as a reminders to brands that using sensitive topics like feminism to promote your product may backfire significantly.
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brand story
june 2017
Brand Story raghav dhanuka | IIM Shillong
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n this edition, we shall strive to talk about not just a single brand story but an entire category, the category that is the driving force of life: Water. It is tough to market a commodity such as water but when the going gets tough, the tough gets going. We have explored multiple sub-segments including flavoured water, mountain water (natural water), enhanced water, and vitaminwater. Bisleri Vedica: Blessed by Nature The packaged natural (mountain) water segment accounts for more than 10% of the mineral water sales by value and is growing at a pace faster than ever. There are many players in the standard mineral water segment although Bisleri still accounts for the majority share. Vedica the natural mineral water by Bisleri is “born of a clear spring” gushing forth from the Himalayas, directly fed into a Bisleri plant and packaged at source without any additives. The premiumness woven around Vedica is best captured in the description at the website: It is an experience in itself, right from the landing. The page opens at the bottom and one has to climb upwards to read more – more like trekking or call it experiential marketing. The clouds unfold as one climbs/scrolls upwards and this is the experience Bisleri brings to you through Vedica. The packaging of Vedica looks elegant with the neck resembling the peak of the Himalayas and the base as the foothills. The shining yellow cap is made from imported technology and looks like a cork, waiting to be unleashed like the spring gushing forth. Unlike Perrier which has an olive green bottle, Vedica has a transparent packaging, which marks its purity. The tagline “Full of Altitude” doesn’t really match up to the quality of the poetic verses on the website It was Initially launched as Bisleri Mountain Water, but legal conflicts with the Tatas [makers of Himalayan] forced them to relaunch it later as Vedica. The conflict turned out to be a blessing in disguise for the Chauhans. The Mountain Water was very confusing for customers, because it had similar packaging as the standard Bisleri bottle and the name itself was quite generic. What attracts one to Vedica is its unique packaging which uses yellow instead of the green used in Bisleri. Yellow produces a warming
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effect, like a sunrise over the Himalayas. The adoption of natural mineral water remains low in India because packaged water was adopted in India in the standard purified form unlike in Europe where it contained the natural water from springs - which had long been associated with their cultural heritage and acknowledged for their health benefits. Since Vedica is mostly focusing on exports due to lower sales at retail channels, it has to compete with the likes of Perrier and San Pellegrino. The sale in India is mostly through premium channels such as hotels, clubs and airports. Whereas both Perrier and Vedica come from natural mineral resources, Perrier is embellished with relatively greater amount of carbon dioxide and so it is difficult to resonate with the Indian consumer who is averse to drinking carbonated water. One reason why the sparkling water is so popular in Europe is because the mineral water found in the numerous springs was naturally carbonated and they have acquired the taste over time.\ Himalayan: Untouched, Unprocessed, Crafted by Nature The first brand in the natural mineral water segment in India, Himalayan was originally launched by the Balsara group in 1991 and later acquired by Tatas in 2007 and had long been the only Indian natural water brand to be accepted in the international markets. But after the acquisition by the Tatas, the customer base has expanded from institutional to retail and the entire design has been revamped with the help of an Italian design firm to produce a visual differentiation but the charming and tender pink color has been retained. Pink inspires warmth and reduc-
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june 2017 tourists in India and the hospitality sector remains high and the drink has also been acceptable to their palates. Himalayan has also come up with the sparkling mineral water variant which is carbonated but is different from a soda or a seltzer.
es aggression, having a calming effect on the nerves. This nicely complements the concept of Himalayan - being rejuvenated from the inside out, feeling at one with Nature. After the rebranding by the Tatas, the Facebook page has also been buzzing since past four years. Apart from the association with gourmet beverage recipes with Himalayan as an add-on complement, and adventures which is common to Vedica as well, the marketing around Himalayan has focused on four themes: Natural Beauty Natural Living Natural Fitness Natural Health
Perrier: It is crazy! “Rich people water” and craziness woven subtly in all the promotions, the brand Perrier stands for fun. Perrier is a French carbonated water brand with natural carbonation at the source near the Vergèze spring.
The FB page regularly holds contests inviting user experiences on the different themes. The most interesting narrations get a reward such as a trip to the Himalayas, or the user’s experience embedded in the website of Himalayan for everyone to read. This displays the warmth and affection of Himalayan towards its consumers. So a contest on Natural Beauty invites responses or suggestions on staying naturally beautiful without the use of chemicals. A user response on Natural Beauty has been reproduced below from the website:
A soft drink the way nature intended.
Perrier ad from 1984
While that was in 1984 the current advertising makes use of specially created gif images with constant focus on the Perrier bottle. Perrier has utilized the different seasons of the year, as portrayed below, to put forward different “I drink warm water with honey and Nimboo first thing in usage aspects, with the help of gif images trying to adapt the morning. It has benefited me as I have lost weight, my to technological innovations. skin’s got better and it has also improved my digestive system. #NaturalBeauty” -Deepa Shenoy Soni Natural Health talks of food and diet, whereas natural fitness focusses on exercise and yoga. In this fashion, Himalayan has made a positive association with living a natural life, covering all possible lifestyle habits, and has thus established itself as a premium natural water brand. It will be interesting to find out the proposition Vedica makes given the fact that the trust generated by Tatas is at par with Bisleri if not more than it. One difference between Bisleri Vedica and Himalayan is that unlike Bisleri, Himalayan doesn’t have a purified mineral water product for the mass market. So it is tougher for Bisleri to make an impact with Vedica given that it is a generic name for purified water segment. The second is that Himalayan has been selling for almost two decades now, and is recognised in the export markets. So the sales of Himalayan among foreign
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Springtime is extraordinaire with Perrier
Sends you over the Rainbow
The brand has a good sense of emotion, fun and humor. It came up with a puzzling new flavor, Cactus, and fooled everyone as a part of the April Fool’s gimmick.
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Both Vedica and Himalayan have a lot to learn from Perrier in terms of active marketing promotions. They have a long road ahead or rather a hill. Although association with comedy shows and fashion weeks and models posing with a bottle of Vedica was the logical first step. in terms of developing that elite imagery in India, it is time they come up with creative stuffs and on a frequent basis. The Vedica bottle looks abandoned, cornered and lifeless in those promotions, and needs some sparkle, it has to be a living symbol, like Perrier. The resemblance of the Vedica bottle neck to a mountain peak could be incorporated in the creation of an animated Avatar. Water gushing forth from an aquifer [the bottle base] with a hill in the background [the bottle neck] and the scene slowly transforming or fading into the bottle itself could serve as a good commercial. More research is required to gauge the impact on the consumer’s mind if the product is associated with yoga. It does provide an aesthetic appeal [Remember Taj Tea: Ustad Zakir Hussain on a Tabla]. Vedica needs to generate a thirst for the natural water, a thirst which can only be quenched by a bottle of Vedica. An ad on Vedica could run on these lines: a middle aged man travelling alone in the Thar desert on a camel, dehydrated under the scorching sun, reaches for a key tied to the chain around his neck, opens up a box he is carrying inside a bag, and takes out a bottle of Vedica from inside his treasure trove. The moment he drinks from it his desert attire transforms into a fur clothing and the camel transforms into a yak. With a spring in the backdrop and water spurting high above it: this could be the Himalayas and the source of Vedica. It has been three years since Bisleri talked about getting into the flavored water business as it was an attractive avenue. Vedica is the perfect sub-brand to launch the flavored water as flavored water itself is a luxury consumption. They would have to add just a little more carbonation/sparkle but not as much as in a soda. But care must be taken before adding any sweeteners. They could start off with subtle flavors such as green apple and peach to gauge the response. There are two types of flavored water at present, one with high carbonation [at par with sodas] and another with low carbonation. The latter serves the purpose of water as well whereas the former doesn’t. So it is the second category in which Vedica can venture. It doesn’t really make an impact when the Vedica page talks about recipes and beverages to beat the heat. But it does when Perrier makes the following ad because it can be used as a substitute for soda also. One reason is that Vedica doesn’t have a sparkle [fizz or carbonation] whereas Perrier does. The carbonation in Perrier is natural and Indians may not like the crisp taste of Perrier when tried without any additives [it may taste like a soda bottle opened for sometime]. So unless Vedica comes up with a sparkling alternative it cannot make use of this proposition in its promotions and it would also depend on the source spring.
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“When life gives you lemons, drink Perrier!” “Imagine the subtle citrus flavor of lemon and lime, with Perrier’s unique bubbles” Flavoured Water & Vitamin Water: Marketing Gimmick or Innovation Flavoured water is definitely less calorific than a bottle of coke. It may rather be compared with Diet Coke [which may not taste as good as plain Coke] in calorie terms. There is much debate regarding the nutritional advantages of flavoured waters. While many believe that it is a marketing gimmick and nothing but sugar coated water, there are others who have reduced and relinquished their addiction to soda and coke thanks to flavoured water. Studies show that parents are more prone to purchase drinks advertising nutritional claims over soft drinks for their young ones. While many companies add artificial flavours and sweeteners there are some which have 0 artificial flavours and minimal sweeteners. Flavoured water sales are yet to pick up in India. While Africa and India are grappling with water shortage, folks in the West are bored of drinking plain water. And flavoured water has effectively quenched that thirst for something different. It solves the dual purpose of quenching thirst as well as delighting the taste buds. Also, there is lesser guilt post drinking compared to sodas (cokes & other carbonated soft drinks). Vitaminwater
The idea of smartwater was conceived in 1996 by Energy Brands/Glaceau in Connecticut and it was considered to be an enhanced form of water receiving a huge success during the late 90s and early 2000s. Vitaminwater was later launched in 2000 by adding minerals, vitamins, and fruit-flavours to the electrolyte mixed smartwater with an aim to fill the gap between water and soft drinks. The bottles of Glaceau’s Vitaminwater are labeled with
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june 2017
descriptive words that convey different effects – Restore, Spark, Defense, Glow, Think, Relax. These labels provide you with different options for different situations and needs, although keeping so many SKU’s at smaller retail outlets in India is not going to be easy. Coca Cola is also diversifying its range of drinks by acquiring brands such as Glaceau as drinking habits are gradually changing. Glaceau’s vitaminwater was a category creator. With innovation in colorful packaging, vibrant labels and ingredients it disrupted the market lead by Dasani and Aquafina. It focused on easy to understand benefits and ingredients [Vitamins] and focused on the 18-30 age group, particularly women.
wanting to introduce brands like B’lue in India. In return Narang received insights and expertise on product development. While one arm of the JV focussed on marketing distributing other brands such as Perrier, Evian and Red Bull, another independent arm focussed on managing B’lue and Qua. While rights to marketing and manufacturing B’lue have been retained by Danone, which has introduced it in other countries as well now, Narang group has launched a similar product in India after Danone pulled out B’lue from the shelves for some unknown reason. Maybe Danone wants full control of the beverage and is coming up with a full-fledged launch as B’lue was only launched in limited cities for test marketing. But in the meanwhile, Narang group has come up with O’cean, which is almost a replica of B’lue.
Glaceau started off by selling Smart water: water fortified with electrolytes. At one point the Tata Group also had stakes in the company which were later sold off to Coca Cola. Instead of labelling the newly launched vitaminwater products as sports beverage or sodas [Gatorade or Snapple] Glaceau instead wanted to be shelved with regular waters. And thus the concept of vitaminwater emerged. Most of the consumer base comprised of gym rats and non-conformists who sportively appreciated the cheeky slogans and humorous messages on the bottles. Use of custom flavours named after celebrities also played a role in popularizing the drink. Recently they came up with a twitter campaign #MakeBoringBrilliant which asked people to tweet what’s boring and they would try their best to make it brilliant. The campaign made many personal impressions and resonated well with their target crowd - youngsters and teenagers – Not just the name, the packaging of the bottle is also similar. So are the flavours and the taste. O’cean comand also reinforced the brand’s uber cool personality. mands Rs 45 for one bottle of 500ml. Maybe its enjoyHowever, the millenials have easy access to internet and ing monopoly in the flavoured water segment, but that data, and it will be tougher to misguide them on the health wouldn’t be for long enough. quotient. Being aware of this potential downhill, vitamin- The bottle reads: water has already started making an effort to reposition O’cean Fruit Water “ An optimal blend of water, fruit itself as a fun and interesting drink for any occasion; it has juice, glucose, electrolytes and vitamins” also introduced the concept of ambition and hard work “O’cean Fruit Water is that rare combination of a drink [which is yet to be seen in the soft drink category in India]. that’s good for you and tastes great too. The glucose & It should also focus more on the word ‘enhance’ instead of vitamins help release energy, the refreshing fruit flavour ‘health’. It owns the enhanced water category, the water makes you drink more than plain water, while the other contains enhanced nutrients and enhanced flavours. It en- great ingredients rehydrate and renew your body to help hances the lifestyle and experience of the consumer. This you sail through your day.”
can work well with the millennials who want brands to be Though the taste is appealing, the nutritional informamore honest with them. tion is not. For every 100ml of O’cean you are gulping there is 43kcal of energy, 10g of carbohydrates and 10g O’cean: Flavoured Water B’lues of sugar, which is similar to the nutritional value of Coca Danone and Narang group have parted ways after almost cola. Though the nutritional value may not play a role in a decade of a joint venture that sold beverages. Narang the near future , it willbecome prominent once there are group started off by importing and distributing Red Bull other players in this segment. The difference between in India. The tie up with Danone later on was a strategic Coke and Ocean is that Coke doesn’t purport itself to be alliance, as Narang had the expertise in HORECA distribu- healthy and nutritious, so the claim made by o’cean is tion and catered mostly to the top of the pyramid. This was not really an honest one. Moreover, it is trying to comthe ideal distribution network for a company like Danone pete with mineral water and not soda, so it has to
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brand story
june 2017
reduce the sugar content in time. Since the consumer is someone paying 45 bucks for 500ml of flavoured water, when mineral ater is one-fourth that price, he is most probably going to be sensitive about the nutritional aspect. The shift from flavoured water to vitaminwater and now 0 calorie vitaminwater and herbal water was very gradual in the west, though that is not going to be the case with India. In the digital age, rapid transformation has been the norm, and so the flavoured water segment may not reap profits for a longer period of time unless they come up with 0 calorie variants which at the same time do not taste bitter. Qua & Qua+
launch for Qua+ because the time seems ripe. It has a range of tantalizing flavours, and the product design seems to be completely inspired by Glaceau’s vitaminwater range. So does the product concept and labeling. It was launched in six flavours, for different consumption situations. Morning Glory (Orange Lychee Flavor) is meant to provide a good start to the day, Modelicious (Apple) is focused on the working woman who believes in her individuality and is conscious about her looks, and Sin Doctor (Lemon) strives to rejuvenate your senses after a night of party and when you are having a hangover. The Thai inspired Phat Burn (Peach Mango) variant contains green tea extract, caffeine and vitamins which may go down well with the obese, the Rush Hour (Passion Fruit) strives to make you more energetic and the Ninja Kick (Dragon Fruit) increases your endurance.
With this the Narang group will have 3 brands in the packaged water segment: O’cean, Qua and Qua+. Qua is priced at Rs 50 for 1 litre bottle whereas O’cean costs Rs 45 for 500ml. All three are niche segments. Qua caters to natural mineral water and competes with the likes of Vedica and Himalayan. Qua floats nicely between purified tap waters such as Kinley, Bisleri, AquaFina and imported natural mineral waters such as Evian and Perrier which cost more due to the high import duty. While the latter is mainly targeted at the hospitality sector, Qua is betting on the high end customers. Narang’s Indian O’cean has no second as of now, until Danone’s Pacific B’lue is Qua, the luxury natural mineral water from Danone Na- launched again. But Qua and Qua+ do have a lot in comrang was developed in 2008 with a similar proposition as mon and may as well eat away into each other’s market the Bisleri Vedica. After Danone and Narang parted ways in share. 2015, Narang has retained rights to manufacture and market Qua. Don’t confuse it for the recently launched mineral Tata Water Plus: Pyaas Bujhaye Sehat Jagaye water Qua by Pepsi [high end filtered tap water].
Qua+ which was supposed to be launched as a flavoured functional vitaminwater could have been called India’s first vitaminwater. While B’lue was more of a fruitwater, Qua+ focussed on health. Qua+ never received a full-fledged launch. It’s time Narang group comes up with a pan India
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brand story
june 2017
The Joint Venture of Tata with Pepsico, NourishCo, has been capitalizing on the growing nutrition market since the past 5 years. It has been investing a lot in technology and research and trying to come up with innovative products with a global vision to redefine the category. Tata Water Plus is one such hydration innovation in the ready to drink water segment which is disrupting the market at a fast pace. It is India’s first nutrient water and strives to achieve more than
ter, benefiting from the absence of government stipulations on the minimum mineral content to qualify for a mineral water tag. TWP claims to be India’s first nutrient water. TWP contains zinc which is good for immunity, and Chromium and Boron for overall well-being. It “looks like water and tastes like water” but it is “much more than water”. There is no immediate competition in this segment. While a number of players have entered the
quenching thirst; it aims to provide nutritious water for a healthier future. It has been piloted in Tamil Nadu with a good response and is yet to come up with a launch for rest of India. Walmart also has a JV with Pepsico with exclusive rights to sell water plus in Africa. If the product is successful in India, Pepsico will take it to other markets having high levels of malnutrition. One of the promotional videos has the following transcript:
flavoured water and natural mountain water segment, none have explored this opportunity. Moreover it caters to the mass market unlike B’lue, O’cean, Qua, Qua+, Vedica and Himalayan which are mainly focused on the peak of the pyramid.
The promotions look promising and then of course there is an immense credibility brought by the name TATA behind it. In fact, the global image of TATAs is equally “India is growing and it needs water to nurture the genera- reputable. Moreover the pricing is also at par with plain mineral water (Rs 16 for 750ml PET bottle). But, they tions to come, also have an affordable 200ml pouch (worth only Rs2). it needs more than just water; It has roped in former actress Amala Akkineni, wife of it needs nutrition, sustenance and strength, actor Nagarjuna, as the brand’s ambassador for Andhra not just for happiness, but for happiness plus; Pradesh. A Bharat Natyam dancer and animal welfare acnot just for a healthy future, but for health plus; tivist, she brings credibility to the brand. While thinking not just for a strong country, but for strength plus. of a brand ambassador for the pan India launch, the only For a country with big dreams, name that comes to mind is Amitabh Bachchan [Rememjust water is not good enough.” – Water Plus ber the Polio ads.] With the brand image of Tatas, the Majority of the packaged waters in India are nothing but distribution network of PepsiCo and the nutritional value purified tap water, although they claim to be mineral wa- of the product, future definitely seems plus for TWP..
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1)
Marketers and their Curiosity Quotient
Curiosity Quotient (CQ) is a marketer’s ability to be intensely curious about the world around him. The innate love of learning and of knowledge, without the lure of any immediate profit. The burning desire to know more and learn more is at the heart of curiosity. But, Why is a high Curiosity Quotient (CQ) so important to marketers?
Link: -http://www.thehindubusinessline.com/catalyst/marketers-and-their-curiosity-quotient/article9717803. ece
2)
The Friendship that Changed Marketing Forever
Both Kotler and Levy had a profound influence on marketing as we know it today. Levy did pioneering things in the domain of branding, culture and the realm of the symbolic. Kotler must be credited for having established marketing as an MBA and boardroom institution. It could be argued that Kotler is marketing’s best marketer, but how they did it? Link:- https://www.ama.org/publications/MarketingNews/Pages/friendship-changed-marketing-foreverkotler-levy.aspx
3) Advertising is acquiring more colour!
There is an eminent degree of clutter in our life today. This is compounded by marketing clutter, with different fonts, colours, sounds and even smells attached to the marketing of a brand. Given that it is critical for brands to stand out, brands are relying on garish colours. This can be seen as the new rise in era of visual advertising
Link : http://www.thehindubusinessline.com/catalyst/advertising-is-acquiring-more-colour/article9728554. ece
4)
How Will GST Impact the Indian Advertising Industry?
The industry opinion is divided on how advertising will be hit with GST. One of the published reports pointed that GST will lead to an additional volume of media spends as it will reduce the cost of creating an ad. Link :- http://www.adageindia.in/advertising/how-gst-will-impact-the-indian-advertisingindustry/articleshow/58673466.cms
5)
Deep-Seated Materialism: the Case of Levi’s 501 Jeans
A small number of products possess extraordinary symbolic significance to consumers; they are an integral part of popular culture. This paper examines the social functions performed by this icon of material culture. Functions discussed include social reassurance, consumer personalization, attributions of “magical” qualities, mnemonic capabilities, and ceremonial rites. Link :- http://www.acrwebsite.org/volumes/6566/volumes/v13/NA-13
By Suman Sourav | IIM Shillong Reliance Brands to launch Italian company Valentino’s products in India Reliance Brands, has inked a deal with Italian fashion house Valentino to launch its products in India. Valentino, known for its plush red carpet dresses, wedding gowns, and rockstud heels, had been in talks with multiple retailers to establish its presence in the country. Over the past one year, a mix of luxury, as well as bridge to luxury brands like Coach, H Moser & Cie, Isaia, Kate Spade New York, have debuted in India. Looking at this trend, Reliance brands who want to be a leader in retail space in India has inked this deal. From a marketing perspective, this deal will put Reliance brands in the leagues of retail stores that have luxury brands.
Wipro launches new brand identity Wipro said it had launched a new brand identity to ‘underscore its commitment to transformation and evolving client expectations.’ Brand identity is a visual expression of what Wipro do and mean, for their clients. And this is directly energized by their Values. The styling of the brand mark gives it a sense of fluidity, resourcefulness, optimism and a connected world and that’s why new brand identity marks Wipro’s journey of transformation in the digital world. Wipro as a brand refresh signals and hope for even closer engagement with clients, greater innovation, and a deeper impact on their business.
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Raymond launches India’s first branded khadi label Raymond, launched India’s first branded Khadi label- ‘Khadi by Raymond’. Raymond seeks to use its brand value to sell Khadi in a range of fabric blends and ready to wear apparel. Embodying some of the latest design trends and enhancing its quality Raymond Khadi is set to reposition Khadi as a fabric of choice.The mainstreaming of the Khadi fabric is a result of the thrust provided by the Modi-government, which forced the brand of such scale to explore new avenues for Khadi market.
Flipkart to include consumables & FMCG products Flipkart is set to enter the consumables and FMCG category. While the prices will be kept attractive and on par with D-Mart’s strategy, Flipkart will also incentivise customers who shop frequently on the platform through multiple programs, similar to Amazon’s Pantry initiative and the associated cashback on Amazon Pay. Currently, consumables and FMCG as a group ranks among the top three selling categories on the Amazon India platform and Flipkart has been dependent on mobile devices, apparel and large appliances for powering sales.
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digi-tally
june 2017
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Articles are invited
“Best Article”: Shivangi Singh| Amity University She 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 July, 2017. Please send your entries marked as <ARTICLE NAME>_<SENDERS’ NAME(S)>_<INSTITUTE> to markathon.iims@gmail.com.
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