Marketing Monthly - January 2011

January 2011: Vol. 6, Issue 1

Marketing Monthly Aggies Sweep Fashion Scholarship Awards in 1st Competition!

(Left to right) Dr. Sandi Lampo and her award winning marketing students: Marisol Hernandez, Alexandra Sinatra, Mary Colligan, Kristin Shelley, YuJin Yong

The fashion world is often perceived as one of the elite, the beautiful, the artistic… one that is not easily penetrated. Different fashion competitions abound, with hordes of hopefuls vying for their chance to enter the industry. Getting one’s shoe in the door to compete in one of these prestigious com-

petitions is a feat; cat walking away with multiple awards is another. Mays Business School students in Dr. Sandi Lampo’s advanced retailing class accomplished both at this year’s YMA Fashion Scholarship Fund (FSF) national scholarship competition.

Texas A&M University was accepted to Continued next page

1

Aggies Sweep Fashion Scholarship (cont.) participate in the competition for the first time this year. The FSF is a national nonprofit association of influential members of the fashion community including CEOs, presidents, designers, and manufacturers. Member companies include Kenneth Cole, Ralph Lauren, Macy’s and other recognizable leaders in the world of fashion. In efforts to recruit talented individuals and advance the fashion industry, the group awards 75 scholarships each year to students attending selected universities. In early 2010, the Center for Retailing Studies began the rigorous vetting process to be included in the competition. Center director Cheryl Holland Bridges said, “Given the strength of our retailing program and the talents of our students, we knew Aggies needed to be involved.” The nation-wide competition includes 33 schools; A&M students competed against students from the likes of the Fashion Institute of Technology, Cornell, Parsons The New School for Design, and The Wharton School.

This fall, Dr. Sandi Lampo, Mays senior lecturer in marketing, created an advanced retailing course, part of which was to conduct a case study on private brand labels. As more information became available about the FSF, several students tailored their term projects to fit the requirements of the scholarship competition. Lampo chose the best ones to enter. “It was all individual work,” she explained. “They created a new private label brand for an existing retailer, created a merchandising plan, and a mobile commerce campaign.” Told that a maximum of five A&M students could be selected, the group held its breath and hoped for one person to receive the prestigious recognition. True to Mays Business School excellence, they were elated to find out that five A&M students were awarded scholarships. “I am so excited and so proud,” Lampo said.

FSF executive director Harry Harrison calls it “unprecedented” that a school competing for the

first time should enjoy such success. Projects were evaluated by four retailing executives and scored by strict metrics.

In addition to winning the scholarships, the recipients and Lampo will be treated to a trip to New York City in January, where they will attend the awards ceremony at the famed Waldorf Astoria Hotel. “Considering it is our first year to compete, this is a an enormous accomplishment,” said Lampo.

“The girls will get to meet the board for the scholarship fund and interact with leaders in the retailing and fashion industry.” The ceremony is timed to overlap retailing’s major annual trade show, the National Retail Federation BIG Show.

Center director Cheryl Bridges will attend the 100th annual NRF event and also be able to cheer on the students.

Each student won a $5,000 scholarship and the chance to compete in the next phase of the competition, which will award three $25,000 scholarships. All five Aggie winners are guaranteed internships with New York City fashion designers.

Dr. Lampo and all the students in the advanced retailing class, along with mentor Cheryl Bridges (far right).

2

Welcome Visiting Scholar old son is not easy for Bart, but he is looking forward to a busy year, a visit from his family in April, and a summer break in Belgium. His wife, Sofie, teaches education science at the bachelor level. Son Wout (pron. VOUT) just celebrated his first birthday on January 3.

Bart Devoldere, visiting scholar

Please welcome Bart Devoldere who will be spending a year with us as a Visiting Scholar. Bart is a PhD student at the Vlerick Leuven Gent Management School (VLGMS) in Ghent, Belgium, where he works with Marion Debruyne and Ruud Frambach. (Some of you will remember Ruud, who participated in the CRS Thought Leadership Conference last January. ) Bart has a master’s degree in Commercial Engineering (a mix of management, economics, physics, chemistry, and mathematics courses) from KULeuven in Belgium. After receiving his degree, Bart worked eight months as a junior area sales manager, for a steel roll forming company (tubes, frames, storage racks, automotive parts) traveling to Germany, Scandinavia, and Finland.

After that, he started work as a researcher in the marketing department of VLGMS studying B2B marketing, innovation, and strategy. Hooked on research, Bart won a three year scholarship to support PhD studies.

Coming to Texas without his wife and one-year-

Back home in Belgium, Bart plays the bugle in a band which is largely brass, percussion, and saxophone. His band plays concerts, marches in parades, and enters competitions, playing all kinds of music. He has played since he was nine years old. He studied the bugle at an adjunct public music school, which he attended two times/week for a very nominal fee.

Bart is active in Junior Chamber International (JCI ) “Young Active Citizens Creating Positive Change.� JCI is the only worldwide non-political and non-sectarian youth service organization. It is an international community of citizens between the ages of 18 to 40 with the aim and purpose of creating positive changes in the world. The Current UN Pres is JCI, and JCI has a seat at UN. The World Congress of JCI will be in Brussels in November. Bart regrets that he will not be in his home country to attend!

His areas of research interests include market entry/exit, the resource-based view, business models, dynamic fit, global franchising, epochal innovation, and competitor spillover. He brings with him data on the European newspaper industry and the market research industry. Bart plans to advance his research agenda by working with interested scholars in our department, and he also intends to take a few doctoral seminars.

Please say hello to Bart as you see him in the hallways.

3

Congratulations!

December was a very good month for our colleague, Manjit Yadav! Congratulations to him on his selection as the recipient of the 2010 Harold H. Maynard Award for his article entitled, ““The Decline of Conceptual Articles and Implications for Knowledge Development,” which appeared in the January 2010 (Vol. 71, No. 1) issue of Journal of Marketing. The JM Maynard Award is presented for an article chosen by the JM Editorial Review Board for its significant contribution to marketing theory and thought.

The award will be presented at the American Marketing Association’s 2011 Winter Marketing Educators’ Conference to be held February 18-20, at the Hilton Austin in Austin, Texas.

Award for the Best Article in Volume 85 (2009) of the Journal of Retailing (“How Task-Facilitative Interactive Tools Foster Buyers’ Trust in Online Retailers: A Process View of Trust Development in the Electronic Marketplace”). This award will also be presented at the AMA Winter Conference in Austin, TX.

http://www.marketingpower.com/AboutAMA/Pa ges/AMA%20Publications/AMA%20Journals/Jour nal%20of%20Marketing/JournalofMarketingAwar ds.aspx Manjit was also appointed to the Macy’s Foundation Professorship. This appointment, announced at the December college faculty meeting, is effective September 1, 2011.

Manjit Yadav

And as “proof”. that good things come in threes, an article Manjit co-authored with Rajan Varadarajan and Pranjal Gupta (University of Tampa; former Texas A&M PhD student) has won the 2011 Davidson Honorable Mention

4

Congratulations!

Members of the Department of Marketing were honored at the Mays Business School Faculty and Staff Meeting last month. Congratulations to Theresa Morrison, Kelly Haws, Allan Chen, Alina Sorescu and Manjit Yadav on their creditable accomplishments and richly deserved honor and recognition.

Mays Business School Outstanding Staff Award Theresa Morrison Teaching Award: Lockheed Martin Teaching Award Kelly Haws

MBS Dean, Jerry Strawser, Alan Chen

Ricky W. Griffin Research Excellence Award Allan Chen Fellowship: Mays Faculty Research Fellowship Allan Chen Kelly Haws Alina Sorescu Professorship: Macy’s Foundation Professor Manjit Yadav

MBS Dean, Jerry Strawser, Manjit Yadav

MBS Dean, Jerry Strawser, Theresa Morrison, Associate Dean, James Laird

MBS Dean, Jerry Strawser, Alina Sorescu

5

Marketing Science Institute— Indian School of Business Conference

The Marketing Science Institute (MSI) and the Indian School of Business (ISB) jointly hosted the conference entitled “Marketing in Emerging Economies: The Indian Experience” during December 8-10, 2010 at the Indian School of Business. The three-part MSI-ISB conference focused on the broad theme of marketing in an emerging market with special emphasis on issues relevant to India. The conference highlighted opportunities and challenges faced by marketers in India and showcased a few marketing success stories.

Keynote speaker, K.R. Kim, Vice Chairman and CEO, Videocon, argued that for the next 30 years, India should maximize job creation by leveraging the potential of manufacturing and exports. Kim contrasted soft and hard cultures and emphasized that India needs to grow beyond its already strong base of soft culture and embrace hard culture through risk-taking and discipline. He went on to emphasize “foot marketing” as the hard way to win in emerging markets.

The first part of the conference was about marketing opportunities in India. Venkatesh Shankar, Professor of Marketing, Mays Business School, Texas A&M University and conference CoChair, presented “Healthcare Marketing: Just What the Doctor Ordered” which focused on the reorientation of pharmaceutical firms in India on market creation by penetrating into Tier I and Tier II markets. He emphasized patient-centric marketing, social media marketing, and focusing on branded generics as the future success factors for Indian pharmaceutical marketers. He highlighted the dire need for improving accessibility, affordability, and infrastructure to serve the rural markets.

Continued next page

6

MSI - ISB Conference (cont.)

Shikha Sharma, CEO, Axis bank presented “Marketing Opportunities for Financial Services in India” in which she recounted the marketing success story of her former company, ICICI Prudential in the growing market for life insurance.

She also talked about the marketing story of Axis bank, highlighting the vast opportunities presented by the low penetration of financial products, and customer-centric solution as a source of competitive advantage for financial services.

The second part of the MSI-ISB conference focused on marketing successes in India. Venkat Changavalli, CEO, GVK EMRI, presented “Emergency Services for Emerging Markets.” He shared the success story of his non-governmental not-for-profit organization and argued that a firm can achieve its goals by caring, valuing and

Shikha Sharma, CEO, Axis bank

respecting life with humaneness, humility, and commitment to serve people.

S. Sivakumar, Chief Executive, ITC Ltd (Agribusiness) talked about growth in rural markets driven by factors such as crop diversification, increase in commodity prices, government schemes, and rising aspiration levels.

He argued that the focus of rural marketing has shifted from low prices and outreach to consumer engagement. He recommended contextual design and delivery of products and services, technology leverage, co-option of local people, and experimentation of new business models as the methods to tap rural markets further.

Rajan Varadarajan

Rajan Varadarajan, Ford Chair Professor of eCommerce, Mays Business School, Texas A&M University made a presentation entitled “The Many Phases and Faces of Innovation in India,” in which he talked about reverse and architectural innovations and the role of policy failures in creating innovations. Venkat, Sivakumar, and Rajan also participated in a moderated panel discussion on marketing successes.

Continued next page

7

MSI - ISB Conference (cont.) moderated by Venkatesh Shankar, with a presentation entitled “Decoding Trends.” The other panelists, Indrajit Gupta (Editor, Forbes India) and Professor Rishtee Batra (Assistant Professor of Marketing, ISB) identified high aspiration, willingness to take risk, and an enterprising streak as the characteristics of modern Indian youth.

Ajit Rangnekar, Dean, ISB, made concluding remarks by highlighting the evolutionary nature of marketing in emerging markets and the need for more research on marketing in India.

Media Coverage of the MSI-ISB Conference Venky Shankar co-chaired the conference.

The third part of the conference was about marketing challenges in India. Ajay Nanavati, CEO, 3M India spoke about the challenges 3M India faced in marketing its products and the marketing lessons it learned. He used the example of Scotch Brite to underscore the need to make an emotional connection with Indian consumers in addition to delivering functionally innovative products.

Vikram Kaushik, CEO, Tata Sky Ltd spoke about penetrating rural markets through customized media and communication strategies. In the Tata Sky’s case, these strategies included the creation and promotion of an English language improvement program called Active English, targeted at housewives and a program entitled Fun Learning Pack aimed at (3-12) year old children.

Bhaskar Das, Executive President, Bennett, Coleman & Co. Ltd. started a panel discussion on “Targeting Youth and Tapping their Potential”

Hindu Business Line, December 11, 2010 Ease of use, a compelling brand proposition: 3M The Hindu, December 10, 2010 Focus on new approaches in marketing http://www.hindu.com/2010/12/10/stories/201012 1054650700.htm Hindu Business Line, December 10, 2010 'Blending hard culture with soft skills will take India places' http://www.thehindubusinessline.com/2010/12/10/ stories/2010121051500500.htm Hindu Business Line, December 10, 2010 No dilution of PE arm, says Axis Bank Andhrabusiness.com http://www.andhrabusiness.com/NewsDesc.aspx?n ewsID=Axis-Bank-to-open-70-80-new-branches-thisfiscal.html India Education Diary http://www.indiaeducationdiary.in/showEE.asp?ne wsid=4967

8

Congratulations!

Congratulations to our own PhD candidate, Ying Zhu! In December, she accepted an Assistant Professor of Marketing position at University of British Columbia (Okanagan Campus).

After making six campus visits and receiving three job offers in a tough job market, Ying made the decision to start her academic career at UBC starting July 1, 2011.

The campus is inside the Okanagan Valley, one of the two winery clusters in Canada.

Ying published her master’s thesis on marketing strategies for Canadian wineries at Canadian Journal of Administrative Sciences in 2009 and will be happy to continue her research on the wine industry after moving to Canada.

“Establishing Human Brands: Determinants of Placement Success for First Faculty Positions in Marketing,” by Angeline G. Close, Julie Guidry Moulard, and Kent B. Monroe was accepted for publication in The Journal of the Academy of Marketing Science.

Abstract: Based on primary data spanning 5 years, we examine factors that influence the entry-level placement of marketing doctoral candidates at U.S. universities and colleges. Contributing to the emerging research on human brands, we identify marketing doctoral candidates’ intrinsic and extrinsic brand cues that influence their number of AMA interviews, campus visit offers, and starting

Venky Shankar's paper, "Strategic Allocation of Marketing Resources: Methods and Managerial Insights", was recently listed on SSRN's Top Ten download list for the topic "Other Market Strategies" as of 12/30/2010.

Venky Shankar's paper (co-authored with Xing Pan and Brian Ratchford), "A Model of Retail Competition in Service and Price: Pure Play Internet vs. Bricks-and-Mortar Retailers", was recently listed on SSRN's Top Ten download list for Review of Marketing Science (ROM) as of 12/30/2010.

Kelowna, BC, home of the University of British Columbia, and future home of Ying Zhu

base salary. The strongest brand cue is the research productivity of candidates’ doctoral degree-granting departments. A related cue that also predicts initial salary is the candidates’ advisors’ research record. Further, when beginning the job search, doctoral students who have a top research publication, who have a dissertation proposal defended with data, and who have attended the AMA-Sheth Foundation Doctoral Consortium receive a substantial entry salary premium. Based on branding frameworks and theories of academic rewards, this study adds to the emerging knowledge on both the concept of human brands as well as the growing literature on issues relating to marketing academia.

9

Congratulations!

Alina Sorescu and Zixia Cao have a paper accepted at the MSI sponsored conference “Marketing Strategy Meets Wall Street II” which will be held at Boston University in May. The title of the paper is “Wedded Bliss or Tainted Love?: Stock Market Reactions to the Introduction of Co-branded Products”

co-branding experience and co-branding with complementary brands. In contrast, innovative co-branded products and products relying on exclusive provisions of secondary brands only benefit the parent firms of the primary brand.

The insights from this research offer clear and actionable managerial guidelines for selecting co-branding partnerships that can lead to positive financial returns in both the short and long term.

Abstract: Co-branding, or the practice of using two established brand names on the same products, is a commonly used marketing tool.

However, there is little, if any evidence in academic research supporting the view that cobranded products are wise investments for their parent firms. Whether financial rewards accrue to the manufacturer of co-branded products (e.g., the primary brand parent) or to the partner firm that lends its brand to the cobranded product (e.g., the secondary brand parent), and how these rewards may differ depending on the characteristics of the cobranded product itself are yet unanswered questions. Using a large dataset of dataset of co-branded products from the consumer packaged goods industry, we find that announcements of co-branding products are indeed greeted, on average, with positive abnormal returns, above and beyond what the same firms garner from non co-branded innovations, but the magnitude of these returns does vary by the position of the firm in the alliance as well as the characteristics of the Charles Futrell was honored as guest coach at the Texas A&M co-branded products. We also find that in the vs. University of Washington game. short term, the manufacturer of the primary brand gains significantly more from endorsement than from other types of cobranding, but the parent of the secondary brand parent firm gains most from composite branding. Both partner firms benefit from prior

10

Center for Retailing Studies News & Updates The BIG Show The National Retail Federation celebrates 100 years of this annual retailing convention in New York City, Jan 09 - 12, 2011. Attendees include CEO’s, presidents and senior executives from every major retailer in the USA and representatives from all over the globe. Some of the topics covered include “Retail’s Road to Recovery: Status Report on the Global Economy;” “Consumer 2020: What Lies Ahead for the Retail Industry?” and “Sustainability: The Many Shades of Green” In addition major retailers will speak in breakout sessions.

Terry Lundgren, Chairman, President and CEO of Macy’s Inc. kicks off retail’s BIG Show emphasizing that the retail industry, which employs 1 in 5 jobs in the U.S., is a key player in the domestic recovery. CRS Director, Cheryl Bridges joined Sandi Lampo at Tuesday’s gala event in NYC honoring winners of the Fashion Scholarship Fund.

Five Aggies received the award this year in their first time competition (see cover story).

Retailing Career Fair: Wednesday, February 2 Students pursuing the Certificate in Retailing continue to cite the Retailing Career Fair as the top way they first connect with hiring managers for internships and postgraduation positions. We ask faculty to place this important recruiting event on course syllabi and encourage all students to participate. With 30 recruiting companies, students can enjoy ample time to visit with each recruiter and learn about the diversity of career paths offered by retailers.

Advisors’ Corner The primary event for advising in December was graduation! Leslie congratulated nearly 50 graduates as they walked across the stage for the December 2010 Commencement.

On a Personal Note…

Good news from Jeff Meyer: “I am very happy to announce the arrival of Jonas Dane Meyer. He was born at 2:12 am on Friday, December 17th, and is a very healthy 9 lbs 1 oz and 22 inches. Both Jonas and Glory are doing great after a long labor, and they are all now back at home in Perrysburg. While my present has already arrived, I’d like to wish everyone Happy Holidays!”

We want to include your news items in the next issue. Please submit them to Laurie Marshall at lmarshall@mays.tamu.edu,

Introducing Jonas Dane Meyer!

11