Pitch November 2012 by Adsert Web Solutions

Volume X Issue 2 | November 2012

` 75

Off Track Running in its second year, the Indian edition of the high-profile sport Formula One, has failed to attract local advertisers and associations. Whatâ&#x20AC;&#x2122;s keeping the marketers away and what are the opportunities available?

Pitch | November 2012

INSIDE

Volume X, Issue-2 November 2012 Publisher & Editor-in-Chief Annurag Batra Editor & Director Amit Agnihotri Director Nawal Ahuja

EDITORIAL TEAM

Consulting Editors

Vinod Behl Noor Fathima Warsia

Deputy Editor

Dhaleta Surender Kumar

Assistant Editor

Ruchika Kumar

Correspondents

Abhinav Mohapatra Aditi Malhotra Arshiya Khullar

Art Director

Jasper Levi

Graphic Designer

Joby Mathew

Photographers

Vilas Kalgutkar (Mumbai) Suresh Gola (Noida)

Off 0

COVER STORY

Pitch

Track

AD SALES

Rohit Sardana Abdulla M Mazumder Varnikaa jain Sneha Walke

9811377592 9871609348 9769153087 9845541143

0FFICES

NOIDA: B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Phone: (0120) 4007700 Mumbai: 301, Kakad Bhavan, 3rd Floor, 11th Street, Bandra (W), Mumbai - 400 050 Phone: (022) 2640 3303/09/14/16 Bengaluru: Flat No. 1,062, 1st Floor, 2nd Cross, 6th Main Road, HAL 2nd Stage, Indira Nagar, Bengaluru - 560 038

The second edition of F1 in the country seems to have lost its sheen. Why aren’t marketers excited about the sport? What are the opportunities available? FEATURES

HOGging the limelight In an attempt to fast track the Indian journey and, living up to its slogan, ‘It’s not the destination, it’s the journey,’ Harley-Davidson India is banking hard on music and community engagement

CIRCULATION/DISTRIBUTION

Dharmender Singh (Noida) Circulation & Distribution Head - 9999419197 dsingh@exchange4media.com Anandan Nair (Mumbai) - 9819445200 anair@exchange4media.com On News-stands ` 75 www.pitchonnet.com Printed and published by Annurag Batra on behalf of Adsert Web Solutions Pvt Ltd B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Printed at All Time Offset Printers, E-53, Sector-7 Noida, Uttar Pradesh - 201301 An exchange4media Publication

Cooking A Storm Hoping to appeal to a larger audience, Tata has brought in a new version of Safari - Storme. Will it be able to sweep off Mahindra’s Scorpio? How’s Tata looking to catch the customers’ attention?

Carrying the Oxford pride

Oxford University has brought to India its merchandising and is hoping to target the youth beyond the loyalist alumni

Pitch | November 2012

Milking national success?

Looking to go beyond the National Capital Region, Mother Dairy has shifted its positioning from ‘health’ to ‘motherly love’. Will the new positioning excite customers?

Letting in some fresh air

Microsoft has a 360-degree marketing plan to promote its latest offering - the Windows 8

It might be indubitable that a spectator of the Formula One will get the thrill of his or her life, but it all depends on the kind of money you have. Unless you have a Grand Stand pass or a Platinum Lounge permit or a chance to ‘network’ in the Paddock Lounge, with the Rs 2,000 pass, you will probably see the F1 cars zipping by at 300 kmph. You look and it’s gone!

INTERVIEWS

‘‘Happiness has become generic’’

As for the brands, India, being the youngest country in the world, needs to know, what is the sport or the event people will flock to be the gapers. Yes, India is a cricket crazy country, and you have Sachin Tendulkars, Virender Sehwags and Zaheer Khans in every gully in India depending on who likes the leather better or the preference for the willow. While we have only a handful of Kartik Narayans, but with the advent of Formula One in the country, it’s just a matter of few years when the number grows into thousands. Everyone dreams to sit inside a single seated F1 car, but not drive in the hustle of the city. Rather, people sometimes do aspire to sit in a double seated Porsche or Ferrari looking up to Sachin Tendulkar. But the sport, whether be the driver or owner of a team needs deep pockets for practice or a backing of a deep-pocketed corporate sponsor.

Harneet Singh Rajpal VP-Marketing, Domino’s Pizza India

08 ‘‘India one of five growth countries for Shell’’ Kar-Tai Koh Shell Advance Global Brand Manager, Shell

‘Most practioners don’t understand meaning of 4Ps’

Abraham Koshy Professor, Marketing, IIM

OTHERS

34 50

Chocolates Step Out COLUMNS Deepak Bhatt Kuber Chopra Karthik Kumar Annurag Batra

09 12 32 56

CORRIGENDUM In the October-November 2012 issue of Pitch, spelling of mobile ad network, Vserv, on Pages 41 & 48 was erronously mentioned as Vserve. The error is regretted.

Pitch | November 2012

Flag on

The same holds true for brands that want to hitch-hike on the sport to reach out to an elite audience. The sport has an international reach and associates with international brands, but what India looks for is localisation. Even though the circuit is Indian, to gain the ROI from this sport will always make it unavailable for the common man. Our cover story looks at the challenges and opportunities for local brands to bank on the sport. Before I ask you to wear your helmets and take your seat in the cockpit, let me thank you for the great response and feedback you’ve sent in for the Pitch-Mindshare Digital Report 2012. Have a happy drive.

Amit Agnihotri

amit@pitchonnet.com

REVIEW

Bakwaas Marketing of the month By Abhinav Mohapatra

Gone for a toss?

Arranged marriage

o all those men who are having a hard time convincing women to have an arranged marriage, Raymond has come up with a perspicacious idea. Get a sharp suit made from the brand and keep smiling. Next time your family takes you to meet the girl, be sure to butt into the jostle between the mother and daughter and

pick up fallen objects to hand over to the prospective bride and win her heart in one single shot, of course while wearing the ‘sharp suit’ that ‘feels like heaven’. At first I thought the girl was his girlfriend who had a feeling of trepidation when she saw him getting married and walked away. But after watching the TVC, a few more times I got the drift. The commercial raises a few questions in my mind. Why did the girl agree to marry him? Was it the suit? What happened to her books aka studies? Well the ad doesn’t say much, it only talks about the ‘complete man’ not the complete woman. Next time there should be a TVC where the man is wooed with the girl’s sharp suit. n

ust imagine the Indian Cricket Team standing on the pitch with Pakistan. Nobody’s belly aches to miss the toss but is usually exasperated about the upshot. It seems the viewers don’t miss much. What they need to do is watch the new TVC by Parle Hide and Seek Bourbon. Well the same toss theory follows; two girls on a hike split the Bourbon biscuit to see which side is the chocolate, left or right and what follows is even more intriguing. Seems Bourbon lets the young trekkers uncover if they need to go around a small rock from the left or right. The other TVC is maybe for all shoppers, it helps them abdicate the notion of choice. Just split the Bourbon

Smart delivery guys

he term ‘gadha’ aka donkey is commonly used in the Indian lingo. Yebhi.com has brought the lionized term into its new commercial. Next time you order something online, except from Yebhi.com which provides you with rich English speaking able tech delivery boys, don’t be alarmed if you see a donkey with a ‘jhola’ delivering your product. As it is, it seems we live in a technologically challenged world where even the driftless delivery boys seem as donkeys to Yebhi.com. Haven’t you heard

that most of the exalted e-commerce websites provide a 30-day return policy if not satisfied with the product? Well, seems Yebhi took that to heart to initiate this new style of sending professional delivery boys instead of a random guy who takes the cash or just delivers the product taking your autograph. Can this be called a disdainful approach to other e-commerce website players? Who knows, until some other website comes up with a PIL against animal rights.n

and see which side is the chocolate filling and amazingly in the commercial, it’s stuck on both the sides, hence, both the options. ‘Toss toh sirf bahana hai Bourbon jo khaana hai’ is the punch-line. This reminds me of two-face Harvey Dent from Dark Knight (Batman). It would have been phantasmal if the brand showed an operation theatre. I hope the cricket team wouldn’t have to go through the second TVC or well be having 1971 all over again. n

Not the Biwi silly!

oes the wife change the modus operandi of a man’s dressing sense or is it an e-commerce fashion website? Seems the novel addition to the world of TVC, answering this fact is Zovi.com. Yes, ‘Biwi Nahin Zovi’. Nevertheless, if any random ‘Ghonchu Gautam’ can shop at Zovi and become the heart-throb of a group of

Pitch | November 2012

Boardroom catwalks

Keep away, at bay!

hat does Ebay teach us? Don’t get too close to the ‘chacha’ coming from USA but go for ebay.in! This is because just like the ‘Amreekan Chacha’ ebay will get you the latest DSLR camera at a cheaper price. There was something about ‘sacrifice’ too; told to the husband by the wife. Doesn’t she like her own ‘Chacha’? Seems everybody in the family is in love with ebay, more than the ‘chacha’. Who do I feel bad for? Of course not for the ‘chacha’. The second TVC brings forth the mind on the Indian consumer, this is really for those who are planning to buy the latest iPhone5. Wait for the iPhone 6 so that the prices for iPhone 5 drop and then buy it. Or just go to ebay… Apparently, ebay is like iron in the fire, latest

phones have ‘best deals’ and ‘ebay guarantee’ on them. I think most of the vendors will have to close shop because in India, everyone knows how to bargain. What could be better if an e-commerce website does it for you. n

The limit of push marketing

emember, when you get a call from Rima, Pankaj or Ankur in the middle of a meeting or when you are sleeping? Or, Vijay, Suresh or Rohan call you when you are driving or when you have put a spoonful of food in your mouth? No offence to those who have these names but in the above mentioned situation one thing is common, the package. “You have won a two day five night, one night four day or some slapdash day and night package from Club Mahindra, all you have to do is come to our office.” When you find yourself in such a footing, you must have signed a small little coupon at a petrol

satirising females, it’s time for designers and other retail outlets to cease manufacture and start attending reunions. The TVC was right about outlining one thing; what one does at reunions… discuss what is new-fangled. And voila there is a Smartphone for the smartly dressed guy to tell the world to ‘get smart about style’! Well one thing is clear; none of the men in the class were ‘smartly

pump or a shopping mall and put your ‘real’ contact details on it. Well there is nothing out-of-the-box about Club Mahindra’s push or in-your-face marketing technique. It is funny to see that the so called ‘propitious’ customers who actually do go to their office are made to sit for hours and then pestered to buy a holiday package in the middle of their peak office days or when the holiday season ends. It is even more tantalising to see when the “Sir, can I take your five minutes to fill this lucky draw coupon?” has changed to “Sir, can you punch in your details on this tablet for a lucky draw?” The not so prepossessing factor is that everyone gets a call. n

dressed’ when they were in class in 2004, of course, ‘Na biwi thi na Zovi’. n

hoy bosses and senior executives. If you are facing a problem getting a quorum at meetings, Myntra has a solution for you. Just lease them a tab where they can check out the website and we will have an ‘office’ fashion week in the boardroom. Somehow this commercial has lost its relevance in terms of the product proposition. The older ad gave the three youngsters sitting on a couch apparel and footwear options with a guy from Myntra explaining the pros and cons of the website. Along came the punch-line ‘Real life mein aisa hota hai kyaa?’, to which the baffled yet surmised customers would nod. A catwalk somehow really makes the viewer cogitate ‘Ki real life mein aisa kabhi ho hi nai sakta!’ instead of the question is this possible? Well Sherlock, the point of an ecommerce website in a mobile era is that one can access it from anywhere. And a disclaimer to the office goers, don’t try this in office even though it seems to be a ‘fun’ idea. n -abhinav@pitchonnet.com

Pitch | November 2012

BOOK EXTRACTS

FEATURE HARLEY DAVIDSON

s Harley Davidson culminated the South Indian leg of its global property, Harley Owners Group (HOG) Ride recently, the brand has meanwhile, amplifed the buzz around the third season of its annual music property – Rock Riders, slated to be staged in Bengaluru later this month. But, is this inclination towards a community engagement, by bringing likeminded enthusiasts together, going to translate into a wider reach and access, and ultimately increase sales, for a premium brand like Harley? Going beyond the trusted friends Commenting on buyer interest and trends showcased in India, Anoop Prakash, Managing Director, Harley-Davidson India, says, “While a large section of the demand has come from Delhi and Mumbai, primarily driven by their large population, cities like Hyderabad and Bengaluru are excellent markets owing to the rich biking culture that exists there. There is, however, an increasing demand from Punjab, Kolkata, Chennai and Ahmedabad, which definitely are great markets for us.” According to a TechSci Research Report, released in May, this year, Maharashtra accounted for 25 per cent of the total units sold, followed by Karnataka and Delhi – 20 per cent and 17 per cent respectively in 2011. At present, Harley-Davidson has eight dealers spread across India, in Hyderabad, Kolkata, Delhi, Chennai, Chandigarh, Ahmedabad, Mumbai and Bengaluru. While chiseling the target audience for bikes from the Harley shores, which are often looked at as toys for the young and

With nearly 50 per cent of the population below the age of 35 years, the development of high-end biking culture in the country offers strong growth opportunities the rich, Prakash says, “With nearly 50 per cent of the population below the age of 35 years, the development of highend biking culture in the country offers strong growth opportunities.” And, this is corroborated by the TechSci Research Report, which underlines a key consumer

trend indicating that young Indian enthusiasts are true bike lovers who feel that these premium products enhance their personality, status and provide a genuine driving thrill. According to a SIAM report released in February this year, opportunity for the

Pitch | November 2012

premium bike segment in the country, is quite high, given the strong growth in purchasing power in the hands of the middle-class urbanites, especially in the age group of 20-30 years. The rumble strips But, being in an embryonic stage itself, does operating in the premium brand segment restrict competition only from other players in this segment, or does it extend to a brand with a strong domestic lineage? “The premium bike market in India is still in its nascent stage. Drawing comparative studies and outlining trends for the market at this juncture would be misleading since the base itself is small,” says Prakash on being asked about the potential and existing competition in the Indian market. However, the players in this segment have only been rising in number. In June 2012, for instance, DSK Motowheels, which is DSK Group’s maiden business venture in the two-wheeler segment, partnered with Korean giants S & T Motors to assemble, market and sell the Hyosung superbikes. Brands like Ducati also, started acclimatising to the Indian market as early as 2009, by introducing the Ducati Monster 795 at a cheaper price point of ` 6.99 lakh to cater especially to the Indian and Chinese markets. Adding perspective, auto expert, Murad Ali Baig says, “Harley-Davidson, unlike, Honda or Yamaha, and I must also mention Suzuki here, only has luxury or high-end bikes. The only competitor is really Royal Enfield, the 500 CC version, which is available for approximately ` 1 lakh, which is a quarter of the price that the buyer is paying for a Harley.” There are currently nine offerings by Harley-Davidson in India which range from the Superlow priced at ` 5,60,000 to the Ultra Classic Electra Guide priced

“Drawing comparative studies and outlining trends for the market at this juncture would be misleading, since the base itself is small” Anoop Prakash Managing Director, Harley-Davidson India

at ` 35,45,000. And, while Harley-Davidson steered away from sharing sales figures, a report by SIAM indicates that it sold 348 bikes in the April-July period this year and most of them were in the 800 CC category. The legend rolls on? Particularising further, Harley-Davidson India’s endeavour of leveraging its association with rock music and films, Prakash cites Harley Rock Riders and Harley Freedom Film Festival as properties riding on this proposition. “With Rock Riders, the focus is to encourage promising indigenous rock bands by providing them a platform to showcase their talent,” he says while detailing the music property’s contribution in increasing decibel levels for the brand. This year’s lineup for Rock Riders has bands like Soulmate, Light Years and

There are currently 9 offerings by Harley in India, which range from the Superlow priced at ` 5,60,000 to the Ultra Classic Electra Guide priced at ` 35,45,000 Pitch | November 2012

Galeej Guru, amongst others. The Harley Owners Group is yet another property with a presence in over 120 countries throughout the world. The inaugural Southern Indian leg of HOG Ride ran from September 29 to October 1, earlier this year. Commenting on vehicles like these being used to tap potential customers, Baig says, “These kinds of engagement activities are creating an aura around the brand. But I question if a market of a few hundred bikes is enough to justify a manufacturing programme of any consequence. With Harley-Davidson, the buyer is basically buying the ‘brand’.” The US cult bike maker forayed into the Indian market as a wholly owned subsidiary in August 2009. Since early 2011, Harley-Davidson has been assembling motorcycles in India at its CKD (Completely-Knocked Down) assembly unit at Bawal in Haryana. India is the second country where Harley-Davidson has CKD assembly operations outside the United States, after Brazil. n -aditi@pitchonnet.com

INTERVIEW KAR-TAI KOH

“India one of 5 growth countries for Shell” Kar-Tai Koh |

Shell Lubricants recently launched a global promotional campaign ‘Unlock a Ducati’ for Shell Advanced. In an interview with Arshiya Khullar, Kar-Tai Koh, Shell Advance Global Brand Manager, Shell, talks about this latest initiative and the relevance of a sports-centric campaign in India. Excerpts: How important is India to Shell’s overall business plan, especially in terms of revenue? Well, what we can say is that India is one of our five growth countries for Shell Advance. In India, Ducati is considered to be more of an aspirational brand and there is little emphasis on motorsports here. How relevant is the campaign for your Indian customers? Take reference from F1 in India. We believe there will be increasing interest in motorsports in India. Therefore, the promotion is definitely relevant and it is the aspiration of the Ducati brand and MotoGP being the pinnacle of motorbike sports, which set us apart from other races and contests. Ducati is not all about motorsports but all about a great passion for bikes. We also believe Ducati is a very aspirational bike brand, and often passionate bikers dream to have one of it. The campaign gives opportunity for people to unlock their dream to get the Ducati Monster 795. It is a special bike, not only because it’s a naked Ducati city bike,

Shell Advance Global Brand Manager, Shell

but because it is the first bike that Ducati created specifically for Asian markets. Shell has been associated with Ducati for a long time. What have been some of your other co-branding initiatives? Shell Advance sponsors Ducati for the MotoGP races. You can certainly spot the Shell logo on Ducati race bikes. We also have a Shell-Ducati co-branded merchandise portfolio that has been used in some of our market activation events. Shell has been working very closely with many of Ducati’s dealers and local offices in various countries for joint events such as local promotion, new bike launch and Ducati bikers’ activities. In October 2012, Shell was a part of Ducati Asia Week in Malaysia. This is a bikers’ street party that took place in the Malaysia Sepang race circuit. How has this association helped both Shell and Ducati to enter the Indian market? Both Shell Advance and Ducati have a premium quality positioning. Our technical partnership with Ducati helps us to continuously improve Shell Advance formulation. What we learn from the race track, we apply it to the road and our main stream product. Shell Advance is also specified in Ducati bikes. Shell Advance’s association with a highly aspiring top end player in the biking world, definitely help to strengthen our premium quality product positioning and technical leadership. For Ducati, the support

Both Shell Advance and Ducati have a premium quality positioning. Our technical partnership with Ducati helps us to continuously improve Shell Advance formulation 8

that they can get from the number two International oil company will put them in a very good position to enter the India market. What sets this campaign apart from the previous ones and of course competition? This global promotion is unparallel to any other in this segment due to its very strong global flavour, as we’re activating the global promotion very consistently in these participating markets and leveraging our unique global relationship with Ducati. But not only that, it also has a very strong localised approach to really ensure that this global promotion really appeals to the consumers in the participating markets in a most profound way. The campaign accentuates our new customer value proposition & 2011/12 branding campaign, which is all about “experiencing freedom”. Each of our previous global promotions supports the past branding campaigns in their own unique way. Please tell us more about the marketing and communication initiatives undertaken. There are various press and photo releases to trade magazine and online media. It is also widely broadcast on Shell.com. PR agencies and media representatives were invited to cover the grand prize draw. Is there any other campaign/activity lined up with Ducati in the near future? Stay tuned and look out for our 2013 promotion. It will reward both trade and consumers. Both Shell and Ducati are working on our respective activity calendar for that year. We believe there can be quite a few synergies and collaborative opportunities.  -arshiya.khullar@pitchonnet.com

Pitch | November 2012

COLUMN

The new media marketing consultant A good media marketing consultant should have a strong online reputation, have a portfolio of websites and businesses they have worked for... and what else?

oday, there are more media tools available than ever before. They connect with consumers, deliver a message, and interact on a more personal level. Considering all Deepak Bhatt the new media sources opening Founder, Global Management doors for businesses of all sizes to writetodeepakbhatt@gmail.com get their message across, navigation of the waters of social media @hellomrbhatt and online marketing can be difficult. A new media marketing consultant can help you to locate the media tools that are right for your business, and make the most of your efforts. In addition to traditional media outlets, a new media marketing consultant can also guide you through distribution of your message across: • Use of articles, blogs and other written communication online • Social networking sites such as Facebook, Twitter and LinkedIn • Online video services such as YouTube • Audio messages How new media makes a difference What do these new tools offer that traditional media do not? These tools are widely available to any business, not just those who can afford the high cost of television advertising – and they reach a wider audience, well beyond those who just read the newspaper or a specific magazine. New media marketing lets every business to readily access the same tools, and brings their message

directly to the places where the audience is spending their discretionary time. An effective new media marketing consultant understands nuances in the changing marketplace and how all of the branches of new media distribution can truly create a level playing field for businesses small and large. No matter how your business is postured – whether newly formed or veterans of your industry, a new media marketing consultant can help you distribute your message more effectively and reach your audience on new levels. How new media distribution moves your message Today, people of all ages are now turning to the internet for every purpose from medical advice to entertainment. The success of sites like Facebook and YouTube proves that people are using the internet to connect, to find information they need, and to discover new companies and products. Loyalty to a brand is developed and expanded through Facebook Fan Pages, corporate pages where consumers can “like” their favorites and encourage their friends to do the same. Distribution of messages through online audio and video engages the audience and makes it easy for them to share the messages they enjoy at the simple click of a mouse. In turn, Twitter lets you pass on a message directly to your audience wherever they are, any time of day.

In addition to traditional media outlets, a media marketing consultant can also guide you through distribution of your message across various online platforms Pitch | November 2012

New media distribution disseminates your message to travel further, faster, and to more people than ever before. It gets the audience directly involved and not only shares the message, but makes the message interactive. It then becomes accessible to every business on every level. What to look for in a media marketing consultant There are a few key things to look for when you decide to work with a media marketing consultant. The field has become flooded in recent years with people claiming to be social media experts, online marketing experts, and many similar titles. Finding a true media expert is not difficult, but requires a little research. A good new media marketing consultant should: • Have a strong online reputation • Have a portfolio of websites and businesses they have worked for • Provide references to clients who can vouch for their work • Offer a solid timeline in which you can expect to see results from your efforts • Be active in both the major social networking communities as well as the lesser known sites With the help of an effective Media Marketing Consultant, you can harness the power of all of the new media as well as maintaining your message in traditional areas. Distribution of your message will gain momentum and you will reach more people than ever before.  The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

FEATURE WINDOWS 8

Letting in some fresh air Microsoft has a 360-degree marketing plan to promote its latest offering - the Windows 8

By Aditi Malhotra

icrsoft’s latest edition of its operating system - Windows 8 hopes to own back users that have been drifting to Linux or Mac. Windows 8, has a new user interface, largely convenient for touch enabled devices. Bhaskar Pramanik, Chairman, Microsoft Corporation India, feels that Windows 8 would mark a ‘new era in personal computing.’ Microsoft has tied up with most of the top PC manufacturers like Lenovo, ASUS, Sony, Dell, Acer, Hewlett-Packard and Samsung to produce a range of Tablets/ Hybrids, Ultrabooks and All-in-ones, all of which they’re calling the ‘Hero Devices.’ These range from ` 55,000 to ` 1,14,000. These devices as of now count about 250, and are available in India in more than 100 cities and 2,500 stores. Amar Babu, Managing Director, Lenovo India, says, “We are excited by the opportunities offered by Windows 8 as an operating platform and have already started to unveil a host of products

based on this. In fact, Lenovo’s flagship products, like the recently announced Lenovo IdeaPad Yoga – a PC which converts into a tablet – and the Lenovo IdeaCentre A720 AIO PC will be optimised to

“I think television is a crucial medium. Hence, it’s clearly a preferred media from an advertising perspective” Sanket Akerkar MD, Microsoft Corporation India

run on Windows 8.” Users who purchased Windows 7 post June, are eligible for an upgrade to Windows 8 at a cost of ` 699. For those who have purchased a PC with a Windows OS prior to June 2, the upgrade is available $39.99 (` 2,137 approx, subject to minimum hardware criteria). And an upgrade facilitated via a DVD, can be availed at $69.99 (` 3,741 approx). The TVC endorses the ability of the OS to help its users multi task and this is evident in its punch line - ‘Everything at once.’ Microsoft has roped in professional dancers, Prosenjit Guy Kundu and Payal Balse for one of its TVCs, which urges users to “Bet on” the new Windows 8. The TVC has been directed by Tong Beng. Commenting on the strategy, Sanket Akerkar, Managing Director, Microsoft Corporation India says, “Our objective is to reach our target audience, many a time over the next four to six weeks. For the Indian audience, I think that

Pitch | November 2012

television is a crucial medium and hence, it’s clearly a preferred media from an advertising perspective.” Apart from the campaign, the company is also looking at on-ground experiential activities to drive brand awareness. Emphasising the need to extend a satisfactory purchase experience at the retail front, Amrish Goyal, Director, Windows Business Group, Microsoft Corporation (India) adds, “We have two tasks at hand. The first is to make people aware of the awesome experience they can have with Windows 8. For that, we absolutely need to leverage the classical media like Television, Radio and Cinema. But, we are also recognising the fact that we have a lot of changes that we need to make sure the consumers understand. And, for that, driving in-store experiences is extremely important.” Goyal further demarcates this being done in two ways. The first, he said is an experience being rendered in a paid way. “We take up spaces in cinema halls, malls and IT Hubs. And, the second is, inside a store when one’s deliberating a purchase. At this stage, we want to

“Experience is the key to drive differentiation for Windows 8 and detailing is its value proposition” Amrish Goyal Director, Windows Business Group, Microsoft Corporation (India) make sure there’s a demo, the 4,000 retail personnel are well trained and the customer can play with the device as well,” he says. With this, Goyal sums up that along with awareness and desire, experience is the key to drive that differentiation for Windows 8 and detail its value proposition.

Microsoft has roped in professional dancers, Prosenjit Guy Kundu and Payal Balse for one of its TVCs, which urges users to “Bet on” the new Windows 8 Pitch | November 2012

Widening the ‘Window’ With the launch, Microsoft is aiming to make Windows 8 an all-in-one integrated platform especially for those who use multiple devices. Hence, supported by all kinds of hardware from compact, touchenabled tablets to PCs with HD screens, Windows 8 integrates the touch, mouse and keyboard experience. Maintaining the familiarity of the desktop, the other interesting feature is the fluid interface of the OS with touch enabled devices supporting a swipe across the edges to access settings. And, every activity reading the language of touch has also got a mouse equivalent. The Live Tiles feature on the Start screen showcasing Apps and all the activity on the device, change and update information in real time. In addition, the OS is also cloud connected and with Microsoft SkyDrive, it enables a user, functioning from a web connected device other than his/her own, to access files and content of any nature. With Windows 8, also comes Internet Explorer 10 and the new browser can take optimum advantage of the fresh new OS in Windows 8 and RT. Commenting on the latest add-ons to the platform, Pramanik says, “Windows 8 comes alive with its applications, which are clean and intuitive. These are built into the OS, natively and some of the popular ones across categories include, HT Media, Bookmyshow, gaana.com, dhingana.com, Zovi, Amity University, PVR and the NDTV Play App.” However, the team refuses to put a figure to the number of Apps available with the OS. “I can’t give out a number. All I can say is, if you want an App, it will be there,” adds Goyal. Microsoft claims that the new Operating System can be installed on the same hardware that powers Windows Vista and Windows 7 and can render better speed, compatibility, connectivity and protection. The pricing for all the OS enabled devices in stores, in India, is in Indian currency and local currencies apply to all other countries as well. n -aditi@pitchonnet.com

COLUMN

Travel cos still selling a dhokla dream Thomas Cook, SOTC and new online majors like MakeMyTrip and yatra.com are still selling the same dhokla dream Mr Sheth dreamt two decades ago

Kuber Chopra Founder, Rasta

kuber@thinkrasta.com @kuberchopra

bout a couple of months ago, I woke up to the news of Lalit Sheth, MD of Raj Travels committing suicide by jumping off BandraWorli sea link. And so? It was a suicide in a country, where by the time he hit sea level, couple others popped up. Except, this was the man responsible for half of Gujarat summiting the Jungfrau, the father of the international thepla tourism. Raj travels were the first to curate All Veg Group Tours around the world. They opened doors for the reticent Indian traveller to find comfort in travelling with a homogenous crowd and be assured that Indian food would be made available even under the shadow of Eiffel. Unfortunately, still the template, for every tour operator around the country. Thomas Cook, SOTC and new online majors like MakeMyTrip and yatra.com are still selling the same dhokla dream Mr Sheth dreamt two decades ago.

Bangkok; the family men who embark on dealermeets to the far East, only to return with hickies. And they call these marks as tropical mosquito bites. In short these are the beer guzzling, foul mouthed obese Indian men, who have single handedly destroyed Indian tourists’ imagery in Thailand, while contributing enormously to their GDP. • The Honeymooners: The ones Delhi based comic Sanjay Rajoura identifies as the “chudda adorning bikini woman” with a potbellied man in Bermudas and an Om/scorpion tattooed to the chub. • The Bongs, Gujju and Arora families: They really did buy into the “family holiday” caption. So much so that you can’t escape the bombastic, even grotesque lot anywhere, except maybe on a diving breakinto the Icelandic sea. Actually, don’t count on it, just wait for your first billion and space tourism.

The banal packages available across the board cover certain broad consumer types: • The lady boy hunter: The ones guzzling free beers on an international flight to

Take My Trip: Around the world in 18 days! Price driven, touch point tourism package, meant for the arthritic tourists, to boast about the places they visited to their

I’d like to ask: Are all outbound travellers - families, vegetarian groups or honeymooners? Are they effectively targeting other traveller classes effectively? 12

geriatric friends in the park. That is, if they do not pop it by fatigue induced stroke of having to travel every night during their 18 days in Europe for photo ops. Two words: “Google”, ”Photoshop”. The size of this industry is huge and with the growth being clocked, one may well snigger at this criticism. But really, at this point, I’d like to ask the leadership of each of the Thomas Cooks: • Are all outbound travellers families, vegetarian groups or honeymooners? • Are they effectively targeting other traveller classes? Simply put: “Will Cook Junior ever go for a package tour they offer?” I’m yet to come across any who have taken a package tour of the above mentioned variety. At best they’ve gotten pulled into these because they can’t pay for their own yatra. This consumer is no sucker for industry standard promo prices and has a keen eye for the fine print. They won’t be sweettalked into shelling money for tours that’ll merely have an Indian restaurant under a tall or leaning tower. The industry is missing out on the young, aware, adventurous, single, buddy group urban traveller, who by the way, is a sizeable chunk that self plans the trip and populates global phenomena such as Couchsurfing, Airbnb, etc.

Pitch | November 2012

This consumer class - although divergent in nature and looking for different things while travelling - has one thing in common: They are all seeking an experience. But that should not translate to better butter chicken. Rise of the Travelling Gen XYZ Again, even this consumer isn’t homogenous. • The Backpacker: A couple who loved to travel and back packed their way through the globe found a company along the idea of backpacking (http:// thebackpackerco.com) perhaps, to recover all the money they spent fighting at exotic locales. Either way, rocket science for Thomas Cook? Hold it. Why couldn’t this be one of its verticals? With its deep pockets, it could even deliver an Igloo Vacation. Tie up with Lonely Planet if you please. • The Thrill Seeker: You know what the problem with the big guys and social media is? They just want to be there. Just like the jizzing Sardaar, Honey Singh of Rajouri Garden, at a jazz night. Coming back to the thrill seeker though, all of us have atleast one friend, I beg your pardon, Facebook friend, whose profile picture has him sky-diving while he gets dry humped. The world is full of such adventures and people seeking them. Yet, travel companies want you to “sight see”. Bungee-jumping, scubadiving, camping, biking and riding holidays are the ones that appeal to the youth. Bigger players who already have such facilities and have tours to destinations, just have to market it. • The Young Volunteer: So how does one address the youngster who finds her way to Anna Hazare rallies? There are enough ‘Save the Orangutan’ missions that kids around the developed world get pushed into. Why shouldn’t there be institutional selling around snatching the Playstation remotes/ KFC bucket? I mean, why can’t this kid be chucked into African refugee camps to serve happy meals and discover that saving the world doesn’t

Pitch | November 2012

Why can’t backpacking be one of Thomas Cook’s verticals? With its deep pockets, it can even deliver an Igloo Vacation. Tie up with Lonely Planet if you please merely equate to saving a Persian princess illustrated in Manga? It could also be tied in as a solid CSR package for say Kelloggs, Britannia, McVities… or KFC, no? There could be so much more, holidays focusing on what the different kind of youth seeks: • A party or a rock concert trail across Europe • A soccer package around EPL • A Che Guevara trail • Bachelor(ette) party destinations • A gambling holiday • A World War retrospective I could go on a travel, merely on the basis of all the stuff I want to do. It’s a question of paying attention to socio-economic realities of the market. Sadly, the industry chooses to attend only to the latter half of the hyphen. When a Zoya Akhtar (Zindagi Na Milegi Dobara) could single-handedly devise a

drive-through Spain package for a horde of Indian tourists, who have over the last one year almost successfully managed to save Spain from going the Greece way. What’s the industry doing? You’re telling me, you can’t convince Zoya to put Oktoberfest in her next movie or Karan Johar to paint Manila red. How long do they plan to flog the same ideas? How long can they hide behind “a middle class with expendable income”? The answer lies somewhere in Mr Sheth’s tragic jump sans the bungee. It is for the travel majors to understand that every idea has an expiry date. Or one could look at this as a ready business model for an alternate travel company targeting the Indian youth. While you’re at it, tell Salman Khan that nobody cares about his commitment to travel? n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Pitch | November 2012

BOOK EXTRACTS

FEATURE TATA STORME

COOKING A STORM Hoping to appeal to a larger audience, Tata has brought in a new version of Safari - Storme. Will it be able to sweep off Mahindra’s Scorpio? How’s Tata looking to catch the customers’ attention? By Abhinav Mohapatra

he SUV market in India is fast expanding with both global as well home-grown car-makers fighting for a piece of the rough terrain. In a bid to stay ahead of the curve, Tata Motors has launched the much awaited Safari Storme at ` 9.95 Lakh (ex-showroom Delhi), which is likely to compete with the recently launched Renault Duster and Scorpio from the Mahindra stable.

Commenting on the need for the updated version, Neeraj Garg, Vice President, Commercial, passenger Car business Unit, Tata Motors, claims that this new addition to Tata Motors’ portfolio will appeal to a larger audience than the older Safari. Market scenario According to SIAM’s report of April -

August 2012, domestic sales of utility vehicles have seen a 57 per cent growth since April-August 2011 which was 1,32,236 vehicles. This presents a promising picture for the SUV market to further open up for brands taking a plunge in this industry. The market has further been diversified with the launch of Compact SUVs and upgrades of existing models from across brands. Karl Slym, Managing

Pitch | November 2012

Director, Tata Motors, explains that the SUV segment has split into many. “There have been many facelifts and upgrades but in this segment there is nothing like Storme,” he adds, eyeing a strong number two place in the Indian market in the passenger car segment. The $27 billion company (in terms of global turnover) claims to be among the top three in the passenger vehicle segment in India. The marketing strategy for Tata Motors is to launch six new product offerings in the next four quarters and the company will compete with the volume players in the market as 70 per cent of the market share is owned by the small segment. But are global and proven platforms the way forward to build up mass models in the country? Slym doesn’t necessarily link global platforms with the DNA to build the mass volumes. “But if you got a global platform, one is able to bring some global technology to your portfolio, like we have,” he appends. In addition, Tata Motors plans to have 1,200 touch points and 1,000 service points by the end of the financial year. This shows that Slym intends to sell Safari Storme much more than the old Safari Dicor and he feels that it has a wider reaching target audience and a lot of other capabilities. “It is a real SUV, it’s for those who want a real SUV feel with luxury on the inside. We are looking at a higher end SUV user at the price of ` 10 lakh,” he says. Right turn Ranjit Yadav, President, Passenger Car, Business Unit, Tata motors says that the company has a 360-degree approach when it comes to marketing the Safari Storme. “The key is to let people know and make people check out the product. BTL is focused at letting people test drive the vehicle, because we believe that feeling is believing,” he adds. The company refuses to divulge the spends for marketing, but maintains that since it is a core product, Tata Motors will support it strongly. When asked about the trend of the Indian consumer moving towards

Pitch | November 2012

really the hunting/fishing type but in reality, you will get people on the periphery of that group.”

“There have been many facelifts and upgrades but in this segment there is nothing like Storme” Karl Slym Managing Director, Tata Motors

“BTL is focused at letting people test drive the vehicle, because we believe that feeling is believing” Ranjit Yadav President, Passenger Car Business Unit, Tata Motors

a compact SUV, Yadav says that Safari Storme is positioned as an unabashed full in your face real SUV. “It is not taking on the small SUVs and it is driving the real SUV market to the next level,” he appends. But is Storme pitching itself to the right TG? Murad Ali Baig, Auto Expert, has a different view on that. “You may target the chap who is

Off-roading “SUV today is a bit of a misnomer,” says Baig. He explains that buyers don’t do serious off-roading. They just buy something that looks like an SUV, which gives them that macho feel. With the rising tide of the compact SUV market, Baig explicates that what the market is seeing is not compact SUVs but low cost SUVs. Therefore, the new cars like Renault Duster and some of the other cars are low cost vehicles and they give you a sense of an SUV but they are actually have limited real SUV capabilities. “They are not proper off-roaders. They are two-wheel drives,” he adds. He also feels that Storme might also fall into the category where it will appeal to the masculine side of a certain customer who wants to be an urban cowboy. “Most of the buyers will go for the two-wheel drive, it will only be a minority who will buy the four wheel drive version and are serious about taking it out on the fishing trips and so on,” he appends. As a trend, Tata Motors has always kept its older vehicle versions up for grabs while it launches a new one. For example the Tata Indica V2 was available, while the Tata Indica Vista came into being. Similarly Tata is not going to discontinue the old Safari Dicor while it plays up the Safari Storme. Baig feels that the new vehicle is bound to do well and can outperform the older Safari. “The old Safari was 200 kilograms overweight; the nimbleness the engine responsiveness has been improved as Tata claims, this will be a different experience driving the old Safari,” says Baig. As far as the old Safari is concerned, Tata Motors’ Garg says that it will be staying in the portfolio and the pricing might be repositioned over time. “With a panIndia launch, this SUV will give us a boost in the market,” he concludes.  -abhinav@pitchonnet.com

FEATURE TRADE RELATIONSHIP MANAGEMENT

Focus on retailers too By Arshiya Khullar

n today’s hyper competitive global market scenario and with the slowdown the world over having an adverse impact on retail sales, companies are looking at greater ad spends to defend their market share and maintain their footing. However, a new management science called Trade Relationship Management (TRM) claims to provide a fresh solution to marketers’ aiming at enhancing their market shares by including the relatively ignored aspect of trade relations in their overall strategy. TRM or Trade Relationship Management is a new terminology that has been founded by Dr Sanjiv Sethi, a strategic marketing and management expert, credited for being the first Indian to have invented such a management science. Trade is a pivotal link between the employee and consumer, facilitating the flow of products from the company to the consumer via multiple channels like direct marketing, telemarketing, multi-level marketing and trade channels. However, when it comes to establishing active engagement with retailers and trade partners and forging a relationship with them, most marketers seem to lag far behind. According to Sethi, there is no retailer helpline, no training body and no well-established communication platform for retailers wherein they are educated about new schemes and ads that brands’ have created. As a result of this relative lack of training and awareness of most retailers, there is yawning gap between a retailers’ knowledge about new initiatives launched by a brand-be it a new packaging, new scheme or new commercial - and that of a customer who has been informed of the new developments via promotional campaigns. Sethi, who surveyed around 1,000 retailers during his research, found that many retailers did not even know the full form of MRP. Substantiating his argument about the lack of awareness among trade with an ex-

ample, he says that on seeing a new TVC, highlighting the launch of a new pack of Cadbury’s Bournvita, he frequented several traders enquiring about the new pack but none of the traders had any knowledge. According to him, there exists a clear misalignment between what most brands are

“While CRM and ERM are pursued aggressively by companies, there is no such initiative for retailers” Dr Sanjiv Sethi Strategic Marketing & Management Expert

doing for traders and what is being done for customers via TV ads. As per the figures shared by Sethi, the Indian Retail Industry currently stands at $450 billion, of which, organised retail is merely seven per cent and 93 per cent is mass/unorganised retail. It is therefore imperative to give due importance towards

employing management techniques to increase awareness of the 1.4 crore retailers in the country. Explaining further, the trigger that helped in recognising the need for such a tool, Sethi says that while CRM (Customer Relationship Management) and ERM (Employee Relationship Management) are pursued aggressively by companies to build relationships with customers and staff and keep them content and satisfied, there is no such initiative for retailers. Also, despite motivated employees, highest quality of CRM practices being exercised and companies and achieving high scores on the two indicators of CRM - namely ITP (Intention to Purchase) and TOMA (Top of Mind Awareness) - he found that many brands, especially in telecom, FMCG and durables were still struggling to defend their market shares. This led to the genesis of TRM. It is the full life cycle management of trade right from recruitment, communication, training, commerce and engagement and will help to maintain the consistency of market share with ITP and TOMA. Gallop is used for measuring Employee Engagement and there are many tools for ERM and CRM. Likewise, TRM seeks to be the tool for trade relationships and serves as a ready reckoner for marketers, sales professionals and company heads on trade relations. TRM includes a 16 point mantra which will help to align trade. Some of the pointers include educating and creating awareness, dealer staff training, display scheme training, role play knowledge, to name a few. On the amount of a marketers’ budget that should be spent on trade relations, Sethi appends that by spending 10 per cent out of the overall budget on TRM, brands can double their market share. n -arshiya.khullar@pitchonnet.com

Pitch | November 2012

COLUMN

Endangered species at work place It was not long ago that tools such as tape recorders, rolodex, typewriters and standard working hours were more than just a regular feature in the office space

insights on the perspective of today’s professionals towards these office stalwarts. Thousands of professionals agreed they could easily picture office stalwarts like tape recorders, fax machines and Rolodexes nestled in museum exhibits next to fossils and Tyrannosaurus rex skeletons. However, coffee machines, printers and open work spaces have staying power and were identified as endangered by the fewest survey respondents. According to professionals globally, the top 10 items and office trends that are becoming rare and could even disappear in the next five years are: 1. Tape recorders (79 per cent) 2. Fax machines (71 per cent) 3. The Rolodex (58 per cent) 4. Standard working hours (57 per cent) 5. Desk phones (35 per cent) 6. Desktop computers (34 per cent) 7. Formal business attire like suits, ties, pantyhose, etc. (27 per cent) 8. The corner office for managers/executives (21 per cent) 9. Cubicles (19 per cent) 10. USB thumb drives (17 per cent) Companies now recognise that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two

decades of flattened sales curves have indicated to today’s sharp competitors that their focus must change The top three office tools targeted for extinction among professionals in India are the tape recorder (73 per cent), standard working hours (60 per cent) and desktop computers (58 per cent). Professionals in India believe flexible working hours are most likely to be common in the workplace five years from now (59 per cent). The number-one office dream tool for Indians is a place in the office that provides natural sunlight (36 per cent) followed by a quiet place in the office where they are allowed to take a nap (25 per cent). Globally, professionals selected tablets (55 per cent), cloud storage (54 per cent), flexible working hours and smartphones (which tied at 52 per cent) as office tools that are becoming more ubiquitous. Professionals in the U.S. selected tablets (62 per cent) as the office tool that is ruling the Earth. Looking to the future, we also asked global professionals to rank the dream tools they wish existed in the office today. A quarter of the professionals said that they would want a clone of themselves to help them out through the day’s work and a place in your office that provides natural sunlight followed by a quiet place in office to take a power nap and a mute button on their co-workers. 

The No 1 office dream tool for Indians is a place in the office that provides natural sunlight, followed by a quiet place in the office where they are allowed to take a nap

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

he accelerated evolution of the human race has resulted in the inevitable development of the once-humble office space. With technology ruling the roost in every Irfan Abdulla aspect of life, the work-place is Head of Hiring Solutions, LinkedIn India no exception. Let’s reflect for a moment about what it was like dsapatnekar@linkedin.com to work in an office a couple @1rfanabdulla of years ago – the culture, the environment, the tools, the infrastructure, the actual desk arrangement. It was not long ago that tools and cultures such as tape recorders, rolodex, typewriters and standard working hours were more than just a regular feature in the office space. These trends shifted in the ’90s with electronic devices such as desktop computers, dial-up connection, digital pocket diary, half day Saturdays, etc. With every changing generation, office trends and employee expectations are also changing. Latching onto this thought, we at LinkedIn undertook a study – “Office Endangered Species” – to identify all the old-school staples that are dying a slow death. As a part of the study, LinkedIn surveyed over 7,000 professionals (7,278 to be precise) from 18 countries, including nearly 400 professionals from India, from across industries and asked them a couple of questions to gauge trends and tools that were dying and looming around the corner. The findings of the survey gave us some unique and interesting

Pitch | November 2012

cover story formula one

Off

Track The second edition of F1 in the country seems to have lost its sheen. Why arenâ&#x20AC;&#x2122;t marketers excited about the sport? What are the opportunities available?

By Abhinav Mohapatra

peed, thrill, adrenaline rush, stars – Bollywood, Hollywood and sportspersons – corporate czars and a synchronisation contest between man and machine. A captive audience of about a lakh in stadia for three days and another roughly 3.5 crore global audience on TV. A perfect formula for brands to catch their eye. Is that what we thought? Or expected? The second edition of the Formula 1 at the Buddh International Circuit (BIC) developed by Jaypee, near New Delhi in India, seems to have lost gas when it comes to both audience and the expectations from brands to bet on the sport as a great marketing platform. It was expected that the sport would attract international brands – the Jimmy Choos, Guccis, Prada and the likes of the world to reach out to this high profile audience. That doesn’t seem to be happening as of now. Even local brands have given the sport a miss. Except for the usual suspects – Airtel, Kingfisher, JK Tyres, MRF and about nine others, there’s been cold response from brands to feel the urge to take a ride on the racing sport. On TV – ESPN, which has bought the rights to telecast F1 in India – too, there have been only about 17 advertisers including the three sponsors - Petronas, Samsung and Vodafone. The inventory wasn’t “chock-a-block” and was “still available” till the last minute, according to a senior media planner at Starcom, while speaking to ‘All About Ads’ on NDTV Profit. So where did the formula go wrong? Is it the economic slowdown and that brands are getting cautious? Has the novelty factor worn off? Is it the stringent rules of Formula 1 that’s keeping brands at bay? Or is it a mix of the above? Pitch tries to find out answers to these and other questions and see how the sport can attract more advertisers, brand associates and spectators. Before delving into the marketing part,

Pitch | November 2012

cover story formula one let’s try and make sense of the business part of the sport, which start from the compulsions and limitations of Jaypee Sports International (JPSI), the developer of the circuit and the official organiser of F1 in India. Even though the group pays $35-40 million every year to London based Formula One Management as a fee to organise the event in India, the sponsorship rights remain with Formula 1 and not Jaypee. So, only Formula 1 can decide the real estate available – hoardings of any kind in the stadium or advertising opportunities on or around the track. Brands like Kwality, Haldiram, who had been hired as caterers by Jaypee for the event, weren’t allowed to put up any advertising of sorts. The idea of McDonald’s, according to the JPSI spokesperson, to give away toys related to F1 along with their meals too was turned down. While, of course, there’s opportunity outdoor say for example on the DelhiNoida-Direct (DND) Flyway leading to BIS, but Jaypee’s got no say in that. It’s Times OOH that has the rights to sell the

available spots on DND. Jaypee can sell spots only and around its hotel/s where much of the guests stay. Jaypee has invested about $200 million in the development of the circuit. Add to it the costs of ` 10 crore paid annually as Sports Development Fund to the Sports Ministry; and another ` 7-8 crore expenditure on customs duty on

“Last year, which was an introductory year of the F1, saw a lot of ‘first time’ audience primarily from Delhi and the Northern region” Nitin Prasad | Country Head, Shell Lubricants India import of tyres, fuels and drinks for the event. So what does Jaypee get by organising the event? Only the revenue generated as ‘gate money’. “What Formula One gives you, is a big boost in brand value,”

Investment, Profits and Audience How much does Jaypee pay Formula 1?

$35-40 million per season

Revenues generated in 2011

` 100 crore from tickets + ` 30 crore from parking and hospitality

Revenues generated in 2012

About 25% drop over 2011

Number of tickets sold in 2011

95,000

Number of tickets sold in 2012

65,000

About Buddh International Circuit Money invested on the track

$200 million

Capacity

1,00,000

Number of laps

Circuit length

5.125 km

Race distance

307.249 km

TSA owned Paddock Lounge

Approximately Rs 2.5 lakh per seat

Grand Stand

` 21,000 for three days ` 12,000 for single day

nies. After the event in 2011, the circuit was booked by Ferrari for nine days and BMW for five days. Audi booked it for a car launch event and so did Maruti for its new Swift. MRF too had a track day at BIC. “We want to make the destination a major entertainment centre. So far, we’ve had various car and bike award functions, like the Overdrive Awards; we’ve also had the track hosting a music fest organised by NH7, one week before the F1, where a lot of brands had participated. This is where we recover the money,” says Zaidi. The circuit has also been used by celebrities like Yuvraj Singh, Sachin Tendulkar, Sanjay Dutt and Salman Khan to test their new cars.

Dwindling audience

Ticket Pricing Ticket pricing dropped by 30 to 40% over 2011

Picnic Spots/ Natural Stands

` 2,000 for single day

Platimum Enclosure

` 50 lakh to Rs 1 crore

30-35 seats

Jaypee Paddock Lounge

` 1.5 lakh - Rs 2 lakh per seat

1,000 seats

says Askari Zaidi, VP Corporate Communications and Official Spokesperson of the Jaypee Group, adding, “F1 has given a boost to India’s image, that we are capable of hosting international mega sports events.” The peripheral events are the ones that bring in the money – the races organised by various automobile compa-

Much of the audience last year, close to a lakh - the number was expected to climb - this year, chose to give the bus a miss this year. Tickets sold, according to Zaidi this year, have been somewhere in the 65,000 zone. Final calculations of revenue generated are still ‘work in progress’. However, estimations suggest that as against the ` 130 crore revenue generated last year, which includes ` 100 crore from ticket sales and the rest from hospitality, public catering, parking fee for more than 20,000 cars, this year

Pitch | November 2012

there is likely to be a 25 per cent drop. In 2011, when the event was sold as a three-day package anything between ` 25,000 and ` 30,000, seats were sold on a day basis and that too on slashed rates. While a three-day package cost ` 21,000 this year, a ticket for the Main Grand Stand for a single day came for ` 12,000. The lowest priced ticket came for ` 2,000. So what went wrong in spite of the discounts? It’s the novelty factor wearing off, say industry leaders and observers. Nitin Prasad, Country Head, Shell Lubricants India, partner and sponsor of the Scuderia Ferrari team, says, “Last year, which was an introductory year of the F1, saw a lot of ‘first time’ audience primarily from Delhi and the Northern region who came to understand this sport and the technology behind it. This year, the shift has been towards more car and F1 enthusiasts and people from other parts of the country.” Hence, while Shell’s onground activations in terms of scale were at par with last year, but were clearly more targeted to the changing audience profile and more towards industry professionals. Anwesh Bose, Vice President, Mudra Max, puts the cause for low audience turnout at Airtel’s doors. He feels that the title sponsor, while spent quite a lot of money last year on promotion of the sport, it was merely a “fraction of that” this year. While the audience may have thinned out, Airtel, which is the title sponsor for the Formula One Grand Prix in India, and has a ` 34 crore worth five-year contract with Federation Internationale de l’Automobile (FIA) feels that the “interest in the sport”, particularly amongst the youth has gone up. “This is based on the interest levels we see from youth, in participating in F1 related discussions through social media, through various activities and contests happening around F1,” says Bharat Bambawale, Global Brand Director, Bharti Airtel. Events like MotoGP, which attract a lot of local sponsors in Western countries, have failed to excite the local advertis-

Pitch | November 2012

“F1 caters to a niche. Therefore, nobody looks at it from a ROI perspective. Rather it’s looked from a profile perspective” Anita Nayyar CEO, India & Southeast Asia, Havas Media

“The interest levels of youth in F1 have gone up as noticed on social media, through various activities and contests” Bharat Bambawale Global Brand Director, Bharti Airtel ers in India. Bose blames the economic slowdown for the advertisers’ poor response. “The fear of a economic slowdown has been looming large. Therefore, even the IPL this year and the F1 has been overshadowed by the general flow of the downturn,” he adds. From brands’ perspective, filtering of the audience for Anita Nayyar, CEO, India & Southeast Asia, Havas Media, makes a lot of sense, even though she concedes that brands have spent a few crores on the sport, but the ROI has not

been good. “This kind of sport caters to a niche, therefore, nobody looks at it from a ROI perspective rather from a profile perspective. It is very much like the story about associating with niche channels where you know that the TRP isn’t going to be high, but you do it for the sake of profile and the audience it will attract,” she says. While we would like to believe Sanjay Kailash, Executive Vice President, ESPN Software India, that “popularity of F1” on TV too “is steadily increasing in the country, and especially in the metros” but the reluctance on the broadcaster’s part to share viewership numbers for 2012 could tell a different story. All the channel was ready to concede was overall reach numbers for 2011. TV ratings were masked within ‘smart’ answers. “Last year (2011 season), there was a spurt of 28 per cent in the reach of F1 as compared to the 2010 season. In the 2011 season it got an overall reach of 3.27 crore as compared to 2.55 crore for the 2010 season. The live telecast of the first edition of India Grand Prix generated TV ratings which were at least four times higher than the TV ratings generated by next best Grand Prix,” says Kailash.

Who’s on-board? As according to media buyers, probably anticipating a poor response from advertisers, ESPN did not hike spot rates this year, which were kept at par with last year – ` 1.25 lakh per 10 seconds. Inventories, as said earlier, were up for grabs till the last minute. A look at the list of brands associated with the sport on-ground, and on television – Petronas, Samsung and Vodafone as sponsors and 14 others: MRF, BPCL, Pernod Ricard, Sony India, Sistema Shyam Teleservices, Bharti Cellular, Total, Exxon Mobil, Malayasia Tourism, UBS, Singapore GP, Q Net, India Tourism and DHL, tells a tale of no local affinity. These are brands that have international stakes and deep pockets, which can meet Formula One’s demands, which has built the branding and advertising structure and system in packages. “It is solely their

cover story formula one

The Indian prescription F1 is elitist. The constructors behind are luxe brand labels. And the lay Indian is not entirely happy with just a spectator sport. There should be fan participation

Shalini Rawla

Managing Consultant, The Key Consumer Diagnostics and Intelligence Solutions shalini@thekey.co.in @sherryrawla

ndia is a paradox. This is a byte friendly epithet given to a complex nation. Paradoxical yes - in its bullock carts trundling on the same roads as the Bentleys, with grains piling up and the poor going hungry; paradoxical even in our sporting predilections – where the national game is hockey and cricket its religion. Surely that is old news. Field hockey was considered to be the national game of India, but this has been recently denied by the Government of India, clarifying on an RTI filed that India has not declared any sport as the national game. But it is not just our Govt, it is our culture and history too that bear testimony to the paradox in sports. Sporting paradox of ancient India Did you know that not all sports that enjoy mainstream popularity in India are indigenous? We all know that British rule brought many popular sports to India including football, rugby, cricket, golf, tennis, squash, field hockey, boxing, snooker and billiards – a mix of individual and team sports. But what did we give to the world? Games like chess, snakes and ladders, playing cards, wrestling, badminton and perhaps polo

(kabaddi is not a recognised sport internationally). Notice that most sports that originated in India are individual and not team sport, played by a maximum of four players in a team and not more. Did ancient India not understand the concept of a playing XI? Is it not in our culture to play collective sports? Is that why, we try and pull out heroes from a team than make the team our hero? Is it our colonial hangover then that Indians like most of the imported sports than find pride in the homegrown ones? Is that why cricket is far more popular than chess – despite both sports being blessed with reigning Indian geniuses? Is that also why our team’s performance oscillates on the performance of one or two key players? Man vs machine Another way of looking at why culturally we have produced individual sports rather than team sports may be that India may have been a font of wealth and knowledge back then, but our sports were more dependent on an individual player’s skill and faculties and less dependent on a paraphernalia of equipment. We excelled in the former. Something which was easy to learn even if the player belonged to a family of

The circuit’s PR should be able to dredge up some spicy tattles between opponents on and off the ﬁeld to keep the fans glued to the latest import 24

limited means. Requiring only sleight of hand and/or mind. No equipment; no machinery. Just the player and his passion for the game and the obsession to win. So where is F1 in all this? Why F1 should succeed in India? For starters, F1 is European in its origin. It passes the test of not being indigenous. So it ought to do well in India going by our cultural past. Secondly, we have liked all imported sports that depend on not just the player but also the accuracy of the equipment. In fact, many argue that F1 is not even a sport. F1 is competitive engineering at its best. Mercedes, Ferrari are the luxury names associated with F1, making it exclusive and aspirational. And going by the success of the IPL glamor and the frequency of matches it has, with an F1 happening every other week - awareness, interest and engagement with the sport is bound to go up. Moreover, there are players/companies to root for and not countries – again very similar to IPL. What traditional cricket loses, IPL gains – but some of those gains shall come F1’s way too as there is already a visible flagging of interest and aspiration towards cricket. Lastly, F1 is an individual sport and again ancient Indian sports

Pitch | November 2012

COLUMN activities were rooted more in individual sports than collective. Media agencies and sports management companies may say it is an equation that is panning out well where stars, sponsors and seriousness of intent – all three key ingredients are present in the right measure to rustle up an exciting sporting dish. Not just that, F1 is poised to reach out to the cloyed cricket fans with already familiar stars like Vettel, Hamilton, Raikkonen, Massa visiting India ever so often bringing along with them the glitz and the gossip of circuit parties. But is it going to last? With this year’s ticket sales showing a downward trend, how far is culture and history going to support the argument? The answer lies in cricket itself. Cricketing lessons for GP What could perhaps cement the popularity of Indian Grand Prix is if the marketers enable consumption of F1 in much the same way as we consume cricket. One of the reasons fans enjoy watching cricket is because they also enjoy the mental and physical sparring between not just opponents but also the team-mates. Play the ‘game’ seemed to be ancient India’s motto – be it off field or on field. Observing the team dynamics was found equally entertaining. As indeed the royalty of yore would spectate a match between two individuals while participating as the critiquing audience who formed two teams by rallying around their favorites. The fun was then in jeering at the other squad and drawing entertainment from making educated observations and comments on the moves of each player. The circuit’s PR should be able to dredge up some spicy tattles between opponents on and off the field to keep the fans glued to the latest import. Why else is it that Indian F1 fans remember, of all the F1s, the many spicy races between the two Schumacher brothers? Or the now famous Hamilton Massa Singapore Grand Prix collision

Pitch | November 2012

FUNNILY SO

controversy? The brands must play as an individual and the fans must fight as a team. Take some cues from IPL team anthems. The strategizing and mental gaming opportunity that cricket can provide, can easily become engineering fodder for some F1 fans, making F1 a thinking man’s game as much as cricket is to its fans. Position it beyond just sheer adrenaline. Remember, cricket is a democratised sport. Those who watch avidly have also sometime in their lives played the sport. As it is a kind of a social leveler. Whereas, F1 is elitist. The constructors behind are luxe brand labels. And the lay Indian is not entirely happy with just a spectator sport. There should be fan participation – vicarious or real. A true sports fan knows the game and enjoys watching each nuance as though she were playing the game herself. When a sport is able to gather enough such aficionados, the tipping point of the sport becoming a nation’s passion is not far.

By Harsh & Himani

Indian GP – the endemic That is the exact case with MotoGP. The brands are familiar and a majority of the two wheeler owning Indians may have experienced a Honda or a Yamaha. Indians talk about their bikes with a very personal attachment. A bike is the symbol of Indian youth’s rite of passage. Biking and Bollywood are also inextricably intertwined. And Indian youth follows MotoGP passionately. Imagine when it comes to India. The race has already been played and won several times in their minds, on video or a CD Rom. It is a race of engine capacities rather than unknown engineering feats that take place all in seven seconds in the pit. Buddh being used for MotoGP next year may well be the tipping point for Indian Grand Prix much as 1983 World Cup win became for cricket in India. n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

cover story formula one Team branded Caps, Mugs, Notebooks, Umbrellas, T-Shirts and organisers (diaries)

iPhone 4 covers,Team branded Mugs, T-Shirts, Team Helmets, Carry Bags and 1:43 scale Model F1 Cars

Mercedes AMG Petronas

Marussia

lotus

hrt

Caterham F1 Team

Merchandise

Force India

Team

(Formula One) decision to get ` 100 crore from three brands or ` 10 crore from 10 brands. That is why it is premium and associates with big brands, who have deep pockets, than having any long term association with smaller brands who would change every year,” says Nayyar. Another hurdle for betting money on advertising during F1 is the restricted time available. While ESPN has the global rights for F1, Ten Sports has for MotoGP Asia, which limits the inventory and opportunities for brands to find a spot on television. Airtel, Vodafone, Tata, Reliance, King-

HRT has only the 1:43 scale Model F1 Car

Lotus is still in the process of making its merchandise available to the fans

Team branded Jackets, T-Shirts and Team Caps

Schumacher and Rosenberg Helmets and 1:43 scale cars, Belts, Jackets, Key Chains and Caps

fisher, all have international presence. So it makes very much sense for Vodafone to be part of team McLaren Mercedes; and for Kingfisher, which is known in Europe and the US to be associated with Force India team. Puma, which is the official

merchandising partner with BIC, also has associations with teams like Mercedes AMG Petronas, Williams F1 and Scuderia Ferrari. Puma, according to Bose has always invested in “unconventional methods of marketing”. “Its investments are very low but the ROI is high,” he says. Rajiv Mehta, MD (South Asia), Puma, says, “When F1 came to India last year, it made sense for us to align with the property, since we wanted to leverage our position as a leader in motorsport.” Puma claims to have “a versatile and premium motorsport merchandise collection” of Ducati, MINI, BMW, Mercedes and Ferrari at its five stores on the track and key Puma stores in Delhi, Noida and Gurgaon.

Getting local So are there any opportunities for local brands to get associated with the sport? Plenty, say experts, which range from after-race parties, and associations in terms of connecting with drivers and teams. While Airtel’s campaign, ‘Let Your Heart Race’, offered the consumers a proposition through a contest to be a part of the pit crew of Mercedes AMG Petronas, and organised multiple onground activations across major Indian cities, it was Vodafone that ambushed Airtel’s campaign by linking its own 3G and data services to the speed of F1. GlaxoSmithKline Consumer Healthcare (GSK), which associated its health drink Boost, with Vodafone McLaren Mercedes, is looking towards leveraging kids’ love for the video games linked to racing. F1, feels Jayant Singh, Marketing Head, GSK, “is a great meeting place for Boost that stands for

“This kind of sport caters to a niche. Therefore, nobody looks at it from a ROI perspective. Rather it’s looked from a profile perspective” Anwesh Bose | Vice President, Mudra Max

Pitch | November 2012

Williams

Torro Rosso

Sauber

McLaren Mercedes

Scuderia Ferrari

Red Bull Racing

Team

inspirational energy and a sport that demands a lot of inspiration and stamina from the people who perform.” “A lot of children who we talk to are inspired by racing. If one looks at their video games, they are all about racing,” he adds. GSK ran an online contest, giving the consumer an opportunity to be behind the scenes of the Vodafone McLaren Mercedes team. It’s but logical for tyre brands like MRF and JK to be associated with the sport. Traditionally, MRF has largely been associated with motor-rallying.

Pitch | November 2012

Merchandise T-Shirts, Bags, GEOX Driver Boots, Belts, Key Chains and Umbrellas

Puma Ferrari Bags, Puma Ferrari Shoes, T-Shirts, Umbrellas, Windbreaker Jackets and Remote Control RC F1 cars Bags, Team Caps, T-Shirts, Team Helmets and 1:43 scale Model F1 cars

T-Shirts, Pass Holders, Team Caps, Keychains and 1:43 scale F1 Model Cars

Jackets and T-Shirts

Only the Team Helmet as of now; expecting to be out with more in the coming season

Meanwhile, JK Tyre claiming to be associated with motor racing for the last 25 years in the country and being a big contributor in the development of tracks in Chennai and Coimbatore, is taking

ownership of many championships. “We have helped train drivers like Narain Kartikeyan, Karun Chandhok, Parman Ebrahim and Aditya Patel who have gone to make a mark at the highest level. When this sport comes to the country, we need to be playing the host,” says Sanjay Sharma, Head, Corporate Communication & Motorsport JK Tyre. JK Tyre has also been associated with the support race for F1 in India. Every Formula 1 has a support race that caters to drivers in the 16-24 age group and that support race in India was JK Tyre Formula BMW Cars. The brand also put up its support race cars at DND Flyway and at Terminal-3 Airport in New Delhi. People could sit in these cars and get pictures clicked. The entire exercise, which includes radio spots, print advertorials, hiring of outdoor media on DND and a Paddock Club side branding at the BIC, cost JK Tyre around ` 2 crore. An unconventional association was seen between Marussia Formula One team and Monster.com. The latter was roped in to help the one-year-old team recruit about 40 employees for different profiles. Having launched an integrated recruitment solution for Marussia, Monster helped recruit about 23 people of the targeted 40, filling the positions of a garage technician, electronic engineers, design engineers, and aerodynamics assistants. The online job portal claims to have got 8.1 lakh views for the job offering from across 74 countries. Of the 16,600 applications received from 57 countries, 1,489 were taken into consideration for filling up the positions. The company also launched a microsite for the team in 20 countries with 10 different languages; and launched a video on Youtube to

“When F1 came to India, it made sense for us to align with the property, since we wanted to leverage our position as a leader in motorsport” Rajiv Mehta | MD, (South Asia), Puma 27

cover story formula one

column

Fast and furious The next two years will define the orbit of growth for motosport in the country

S Manish Porwal,

Managing Director at Alchemist Talent Solutions

Kunal Shah,

Deputy General Manager Marketing, Sahara Force India Formula One Team

ports are usually as much a habit as a newspaper. Like a cigarette, they are an expression of who you want to be known as. You may be bored of what you get, but you hang on to it till it starts really disappointing you or something else starts representing what you want to stand for. The inaugural GP saw a lot of buzz on and off tracks as brands and teams went about activating their association and participation. In the otherwise uni-sport loving nation, where a TV spot on cricket can buy an entire sponsorship, F1 has challenged a lot of sponsor assumptions about the Indian audience. But, the early movers got their bang for the buck. The Buddh International Circuit (BIC) was packed to full capacity in Year one and with an attendance dropped in 2012, the advertising capacity of the Indian Grand Prix was almost fully utlised. While sponsors focused on promoting awareness and association with the sport in the first year; the job quickly moved to providing experience beyond the circuit in Year two. Vodafone & Airtel were trying to out-do each other’s voices. While Vodafone bringing down Hamilton; Airtel tied up Mercedes for the Indian Grand Prix. However, this was expected as F1 is a new sport in India and audiences are just about digesting a sport. The good part of the story is that it would only take three to five years for the sport before it becomes the ‘cricket’ of the young

and rich in India. And this new sport will not just provide Indian audience, but will suddenly help MNC brands to focus on audiences beyond national boundaries and get amortisations from across the globe. Kingifsher, TCS and Airtel are Indian multinationals who saw merit this year. Via various brand and consumer promotions fans get a chance to witness the race at virtually no cost as guests of the teams / sponsors and also get a chance to meet drivers and various team personnel. Fans who are just taking to the sport of F1 would be relishing the publicity campaigns that aim to offer the F1 experience to them away from the racing circuit. Sponsors have indulged in mall activities and road shows which include simulator programs, pitstop challenges, etc. which are all a part of taking the sport to the fans! While Cricket will remain the primary sport of the country, there is no denying that the next best sport could be F1. After all, ESPNStar have expected 2.5 lakh viewers from India alone this year. With all the buzz, money is clocking in too. And this is not a sport for the miser to think of investing in. ASSOCHAM reports indicate F1 could help generate revenues upto ` 90,00 crores in the next 10 years and create additional 15 lakh jobs in the technical, logistics and commercial domains. No tourism benefits reported yet, but with Incredible India being one of the lead sponsors of the broadcast

F1 season pans from March to November, a good nine months. IPL, in comparison, just has two months, is more mass and attracts a different class of society 28

of the sport in India on ESPN-Star clearly indicates the potential. With all this, one can’t help but compare Indian GP to the current favourite sport brand IPL. F1 is niche, technologically advanced and a global sport that runs in 18 countries annually. The international audience boasts of more than 52 lakh viewers annually and India is almost a laggard. Brand associations in F1 mostly resonate similar values as the sport and team. Also, F1 season pans from March to November, a good nine months. IPL, in comparison, is more mass and attracts a different class of the society. Cricket is largely restricted to the Indian subcontinent in terms of overwhelming popularity. And the IPL is played for two months of the calendar year, hence marketing activities of IPL and its teams/ sponsors is extremely seasonal, focussed and builds reach. It is obvious that brands leaning towards masses, coverage and shorter take off periods will continue to thrive on IPL, while brands wanting to get into the top circuit, having a slower burn and top audiences will find it difficult to ignore racing. There are a few who will dabble with both and park themselves away from everything else The next two years are going to be interesting to define the orbit of growth for motosport in the country and we do hope there are no pit-stops or crashes before these two. After all, a one horse race was never fun. n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Pitch | November 2012

ESPN Facts

2010 Overall Reach 2,55,00,000

2011 Overall Reach 3,27,00,000 Live Telecast X 4 than the next best GP

2012 Live Telecast Sponsors Petronas, Samsung, Vodafone Spot Buyers MRF, BPCL, Pernod Ricard, Sony India, Sistema Shyam Teleservices, Bharti Cellular, Total, Exxon Mobil, Malayasia Tourism, UBS, Singapore GP, Q Net, India Tourism, DHL

make the job seekers aware of the profile which got 2.5 lakh views. Monster also launched a digital campaign called the Marussia team social media speedster contest where it selected people who would write about the team. The winner got a chance to shadow the team for the three days. According to Sanjay Modi, Managing Director, Monster (India/ SEA/Middle East), the partnership “is in sync with the new positioning of Monster that is ‘Find Better with Monster’ and we are bringing better opportunities for the job seekers as not many get a chance of being a part of an F1 team.” Gerame Lowdon, President and Sporting Director, Marussia Formula 1 team, adds, “Timing was the major factor here,

` 1.25 lakh per 10 seconds both in 2011 and 2012

Spot Rates

Source: TAM; TG: C&S, 4+ (Line+Highlights), Source: TAM; TG: C&S 15+ Males SEC ABC

What Brands Did Airtel

Title Sponsor

Total Sports Asia

Authorised reseller of Paddock Club (PC) globally for F1

Jaypee

Circuit Owner

Vodafone

Team Association with Vodafone McLaren Mercedes

Sahara

Team Association with Force India

ESPN

Official Global Broadcaster

JK Tyres

Support Race Partner

Monster.com

Team Partner with Marussia F1

Tata Communications

Global Connectivity Provider; Official Web-hosting & Content Delivery Network Provider

P&G

Product Partner for Lotus F1

GSK

Product Partner for Vodafone McLaren Mercedes

MRF

Race Partner

UB Kingfisher

Team Partner with Force India

Mercedes

Team Partner with AMG Petronas

Shell

Team Partner and Sponsor of Scuderia Ferrari

Puma

Official Merchandising Partner of Buddh International Circuit

Pitch | November 2012

“Partnership with Marussia is in sync with the new positioning of Monster, that is ‘Find Better with Monster’” Sanjay Modi Managing Director, Monster (India/ SEA/Middle East) and one needed to move fast. Monster had the technology that helped us recruit faster and better,” he says.

B2B marketing While there might be limited opportunities for brands to get associated with F1 and find a B2C connect, there are tremendous opportunities in the B2B space. The Paddock Club is often used by corporates during the F1 races for Corporate Relationship Management (CRM) purposes. Suvrangsu Mukherjee, MD, Total Sports Asia (TSA), the authorised reseller of Paddock Club globally for

cover story formula one

column

F1 can’t be bought and sold like TRPs It needs the same gumption of a champion sitting in his leather chair behind an imposing desk as it demands of a racer who crawls into the cockpit to set pulses racing

Navroze D Dhondy,

Founder & Managing Director, Creatigies Communications

he banshee shrieks of the engines... the streaks of gold, black, blues, reds, …the screech of tyres burning the asphalt…the aroma of high octane fuel… what a heady cocktail? For years, one had seen this sight sitting in the comfort of the bedroom or a bar, trying to replicate the madness in the mind, but one special evening in Singapore all this came to life, when the experience of a lifetime unfolded. The F1 night race in Singapore was my initiation to the glamour and grace of this sport that pounds your temples and makes you realise what a tortoise you are on the road from Gurgaon to Delhi. It was the year when the F1 bosses were in dialogue and debate... should India be a new destination? Can India create a track? Would Indians have the appetite to visit a track miles away, and go back happy with their experience of men driving around twists and turns at 300 kmph? The racing circus finally arrived last year. And what a welcome it was. Over a hundred thousand flocked to see the very first Airtel Indian Grand Prix. The track was a beauty, and acknowledged by the drivers

and the teams. The sandy outlays were definitely very demanding for those who arrived for the race, with some teething trouble with the Park and Ride experiences, the entry and exit points getting choked and even our very own wonderful celebs Tweeting how frustrated they were stuck in traffic or moving at snail’s pace when just a few minutes ago they were dreaming of sitting in those mean machines and becoming legendary Formula One drivers. There has always been debate on whether the average Indian fan has the keenness to ‘BUY’ tickets for marquee events, be it sporting action, music concerts or stand-up comics. When PVR set up shop across India and debates were on whether people would pay ` 75 for a movie going experience to F1 Paddock Club experiences that run into lakhs per ticket, the ‘FAN’ has come a long way. Brands too have been wary of accepting change of this magnitude. Yes, the motorsport associates and the regular list of suspects would always be there, but India incorporated has still not

There has always been debate on whether the average Indian fan has the keenness to ‘BUY’ tickets for marquee events, be it sporting action, music concerts or stand-up comics 30

warmly embraced F1. Besides, the HNI hospitality and some ‘motivational team building’ outing that got ticket sales going, brands on cars are still a distant dream. Yes, of course our own home-grown team Force India has Sahara, Kingfisher and the UB/USL stable plastered across the snazzy car, but how many others have raised their hands to be counted? Reebok and Doublemint did for the last three years, but they were missing in action this time around. What has really changed since last year has been the leveraging by the Indian avtaars of international brands of their global partnerships with the F1 or teams. Vodafone, Johnny Walker, Red Bull, Renault were aggressive and active. Promotions panned the media and ‘meet & greets’ were the order of the day. This is heartwarming. The worst thing global brands can do is to let go waste an opportunity that sits there asking to get splashed… the ‘engagement factor’ is something that will grow in years to come, and brands will have to step up both intensity and longevity of such campaigns to ensure they maximise the bang for the bucks that some person somewhere in the world put down good dollars for. Singapore, Monaco, Abu Dhabi have all used F1 as an excellent platform to sell not

Pitch | November 2012

and ad spots just the race, but the country, the destination. This is an area very wanting in India. It gives the Indian tourism industry a real plank, and may be the DOT and its bosses might want to leverage the vroooooom to tell more people around the world how ‘Incredible India’ actually is. The big debate that rages through board rooms and marketing brainstorms is the connect of a sport and its target group. Is it ‘class’ or ‘mass’? How does it stack up against cricket? IPL? Does the three-hour hospitality dished out at stadiums while top bosses watch Gayle smash the ball out of the ground stack up against the blur of metal, lap after lap after lap? Is there boredom that sets in? For some I met, it was “once is enough”, and for some it was their second year in a row coming to the dusty arena that drew them with the thrills and spills of the sport. Marketing men in all their wisdom feel that a logo spot on a zooming car that is a blur for most of the 70-odd laps are still struggling with the ‘valuation’ business. Agencies are asked to examine and evaluate, and excel sheets try to recreate value that is often referred to as the most expensive piece of real estate. But that’s where the pendulum needs to swing and the mind set free. F1 cannot be bought and sold like TRPs, spots, and print ads. It needs the same gumption of a champion sitting in his leather chair behind an imposing desk as it demands of a racer who crawls into the cockpit of the car to set pulses racing. Brands and managers have to awaken to the real excitement before, during and after the race. After all, it just takes a blink and it’s gone. n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Pitch | November 2012

F1, says, “One of our clients uses the Paddock Club platform for employee and dealer incentive programmes. So, a lot of spinoff is possible, which is up to the ingenuity and creativity of the brand or corporate owner.” TSA is also working with F1 in the global central sponsorship space. Over the years many iconic brands like Marlboro, Benson & Hedges, UBS, Benetton, Hugo Boss, Tag Heuer, Hublot, Tissot, DHL, Federal Express, HSBC, Siemens, and Yardley have used F1 Central Sponsorship Platform as a bedrock of their brand communication heritage. TSA claims to be having active discussions with three global Indian MNCs currently who have shown interest to become a global central sponsor of Formula 1. Similarly, BIC has Platinum Enclosures owned by Jaypee, which can be booked for anything between ` 50 lakh and ` 1 crore per enclosure. These enclosures are glass rooms

F1 vs IPL is it a fit competition If so much is supervening in the F1 front why doesn’t it have a fan following like cricket or IPL? Mukherjee feels that it’s unfair to compare IPL with F1, as the audience profile and event appeal is totally divergent. “I was involved with marketing the inaugural IPL on the central sponsorship front and now my team is handling the same for F1. So safe to say that both events have their own inherent strengths and yet are totally different,” he says. Shell’s Prasad feels that F1 is the most extreme car race under the most taxing conditions with 12 constructor teams (24 drivers) from across the world, who every year spend millions of dollars to extract micro-seconds of speed and performance from every aspect of the car. “The technology and capability developed is replicated in cars across the world. A direct analogy to cricket is difficult to make. Instead of IPL, the T20 World Cup may be a better comparison,” he says.

“One of our clients uses the Paddock Club platform for employee and dealer incentive programmes. So, a lot of spinoff is possible” Suvrangsu Mukherjee | MD, Total Sports Asia

near the grand stand in front of the pit lane starting grid, where all the action takes place. “Though no branding is allowed inside these enclosures, there are many corporate houses who buy these 30-35 seater enclosures for international client meetings, corporate workshops and other business interests,” says Zaidi. Jaypee also has its own Paddock Lounge, which has about 1,000 seats. The cost per seat this year was between ` 1.5 lakh and ` 2 lakh. These seats, according to Zaidi are bought by corporate houses to be gifted and oblige their clients. “If one books 15 seats and above, one can have a demarcated enclosure with little branding,” adds Zaidi.

Crossing the finishing line From a brand and marketing perspective, there’s no other sport in the country that has the potential to draw so many corporates. While opportunities are galore, but until and unless the Indian brands start thinking out of the box, local brands cannot derive benefit from the association with F1. “The only thing that local brands can think of in terms of association is contests. It is the most common form,” says Bose. However, these contests on radio or in newspapers too are short term associations. Once the event gets over, there’s nothing on the platter till the next season. So will Indian local brands get innovative in 2013, that’s a story for another day. n -abhinav@pitchonnet.com

COLUMN

PPC: Aphrodisiac or placebo PPC is a powerful tool in the arsenal of a marketer, particularly when it is linked to a well-defined, measurable outcome

A Karthik Kumar

Director, Rage Communications

action@rage-india.com @Karthik_action

dvertisers who have discovered pay-perclick (PPC) advertising overnight become evangelists of ‘digital advertising’, virtuously declaring the control they have over their budgets and the ability to measure the ‘return on investment’ on their advertising spends. True, the control and measurability turbo-charges the realised value of advertising, but, as usual, the enthusiasm needs to be tempered with a dose of reality. The nub of the issue lies in the ‘click’. PPC advertisers pay only for the click an online advertisement generates. Implicit in this are two assumptions – one, since only those interested in the advertisement will click on the advertisement, and hence are likely to be warmer prospects than those who only ‘see’ the advertisement; two – all the clicks that are generated actually generate an evaluation of the offer conveyed in the advertisement, whether a transaction, (ie a response to an offer to buy, if not the actual purchase) or a proposition. Beyond this is a third dimension that relates to the process – but, more about it later.

CPC a robust metric Intuitively, it stands to reason that the propensity of an individual desiring to transact is greater among those clicking on a digital communication than those who do not. In a general sense this is probably right too, for, after all, why would anybody respond to something that he or she is not stimulated by. Thus is born the metric of click and the cost it requires to generate the click, aka, cost-per-click (CPC), to evaluate the efficiency of the digital advertising. This, by the way, is a significant improvement over the metric, costper-million (CPM) used in mainstream advertising, The CPM measures only the cost per a million impressions of the advertising delivered, irrespective whether or not the consumer responds or leave alone if he/she has actually seen the advertising. Given the import of this metric, CPM, the frenzied rush to buy advertising space in guaranteed block-busters such as a cricket match involving India is not surprising, since a spot on such a programme will almost always deliver a large number of eye-balls and consequently lower CPM. CPC on the other hand,

CPC measures the cost of a consumer response. Thus, as a metric, CPC is more robust than CPM, since it represents an impact rather than an opportunity for an impact 32

measures the cost of a consumer response. Thus, as a metric, CPC is more robust than CPM, since it represents an impact rather than an opportunity for an impact. No such thing as an average CPC But, this is where the good news ends. Typically, the CPC is computed on the average click-through-rate (CTR) of digital advertising. Thus, obviously, if CTR can be improved, the CPC can be brought down. In most buying situations though, the seller determines the CPC based on their metric of average CTR. The average obviously is a via media, between impressions that have a high CTR and low CTR. Since media sellers want to maximize revenues, they would naturally peg the CPC rate most advantageous to them. From the buyer’s viewpoint, however, it stands to reason that advertising on high CTR locations will lower the CPC. In such a situation buying advertising using the average CPC as the metric, may in fact be detrimental to the campaign., since the seller would be pegging the CPM rate at lower level than the CPC rate. However, with a higher CTR, the advertiser may actually end up having greater yields, which will reduce the effective cost to him. Thus the key is media se-

Pitch | November 2012

lection, rather than the false security of CPC. As can be seen, in situations where the media selection is right, the CTR of the campaign may be higher than the metric the seller determines. In such an event it might actually be more profitable for the advertiser to buy impressions rather than clicks, since, then the actual CPC is likely to be lower than what is being offered by the media seller. All clicks are not made equal Are clicks by themselves sufficient? Consider the following scenario (See table): Scenario

Buying clicks without the attendant business value is a chimera that gives a false assurance that money is being well spent, when in actual fact it isn’t the page views on a website or the increase in time spent on a particular page. The fact is that a business value can be determined and needs to be determined, to reach the ultimate holy grail of measuring return-oninvestment. So buying clicks without the attendant business value is a chimera that gives a false assurance that money is being well spent, when in actual fact

CPC bid/click

Clicks

Cost

28,55

1,598.67

28.69

1,520.74

27.67

1,134.30

On the face of it all three scenarios are attractive since they have about the same CPC and the variability in the number of clicks between the scenarios is low. Now, reconsider these scenarios with business metrics added to them: Scenario

it isn’t. When is a click a click? Numbers easily seduce hard-nosed businessmen. However, are the clicks reported by the ad-servers for real? Typically, a click on an advertise-

CPC bid/click

Clicks

Cost

Conversions

Cost per conversion

28,55

1,598.67

28.69

1,520.74

304.15

27.67

1,134.30

As is apparent from a business point-of-view the second scenario is far more attractive than the other two scenarios, which on a mere CPC basis are as attractive. While clicks and the attendant CTR is an improvement over conventional media metrics, the above example shows why it is not enough. To make it complete, the click should lead to an interaction that has a demonstrable business value. Such business values depend upon the business situation. For example, in an e-commerce situation, the business value would be an online purchase, for a branding campaign it could be

Pitch | November 2012

ment leads to a destination – either a web-site, a landing page or a transaction page. There is sufficient evidence, both, anecdotal and backed by tracking data that the two numbers often mismatch, sometimes as high as twice as many clicks being reported as the pageviews of the destination page. In the early days of PPC these were usually attributed to click fraud. This to a large extent has been reportedly curbed to a very great extent. However, a number of technical factors also contribute to fewer than reported clicks being registered on the destination page.

So the adage of ‘Half-my-advertising-is-wasted-I-wish-I-knew-whichhalf’, continues to be as relevant to PPC. This in fact has now extended to the social-media network environment and, the leaders in the space, Facebook and Twitter, have announced their commitment to weed-out malpractices that lead to inflating metrics that demonstrate the success of campaigns on their lack of it. The bane of the algorithm Notwithstanding these inherent issues in evaluating whether PPC is an appropriate strategy, the twin factors of budget control and RoI, lead a headlong rush of advertisers opting for PPC campaigns that are managed by algorithms. These algorithms promise to run the ads in millions of scenarios within specified constraints of budget and desired number of clicks. They certainly meet the twin goals of budget and clicks, and even progressively manage to opitmise the plan by lowering the CPC. The moot point though is whether the clicks deliver business value or are a mere fig-leaf to justify the enrichment of the purveyors of the click. A blue pill or… In all, PPC is a powerful tool in the arsenal of a marketer, particularly when it is linked to a well-defined, measurable outcome. The key is the outcome. Linked to the outcome, PPC is indeed a powerful aphrodisiac. In its absence, though, PPC is merely a blue pill masquerading as Viagra! n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

BOOK EXTRACTS

survey chocolates

Chocolicious

Lure of the dark sweet has prompted marketers to come up with premium variants

recent report by UK-based global market research firm, Mintel, indicates that India is one of the fastest growing markets for chocolates. As per the research, India has posted the largest increase in volume sales with 21 per cent growth between 2008 and 2011. While sale of chocolates has doubled between 2008 and 2011, volume has also significantly increased from 50,000 tonnes in 2008 to 88,000 tonnes in 2011. Providing insight on the consumer trend driving this boom, Deepa Dsouza, Trend and Innovation Consultant –India, Mintel, says, “Consumers are trading up to luxury and premium chocolate, which has given an opportunity to international brands to enter the Indian market and increase their penetration by creating an affordable premium space for the aspirers.” She further explains that many consumers in India view assortment boxes as premium, hygienic and long-lasting when compared to traditional Indian sweets. Dsouza also adds that the chocolate confectionery market, which was considered premium, in comparison to sugar

The Dark Secret India is the fastest growing market globally for chocolates l Volume sales of chocolate in India grew 21% between 2008 and 2011 l Sales of chocolates increased from $418 million in 2008 to $857 million in 2011 l Premiumisation saw launches grow from 4% in 2008 to 6% in 2011 l Seasonal launches increased to 7% in 2011 vs 2% in 2008

“Consumers are trading up to luxury and premium chocolate, giving an opportunity to international brands to enter the Indian market” Deepa Dsouza |

Trend and Innovation Consultant – India, Mintel

and gum confectionery, now has major players manufacturing and distributing their products at affordable prices. This has consequently facilitated choice for the consumer and also, a level game field for manufacturers to compete on. The study also indicates that as far as new product launches are concerned, the premium category, as a claim, has seen a 100 per cent growth, from four per cent launches in 2008 to six per cent in 2011. Seasonal launches have accounted for seven per cent of the total launches in 2011 as compared a two per cent in 2008. Dsouza also highlights some of the key challenges for chocolate confectionery market in India. She lists inflationary pressures on raw material prices, lack of government initiative, high entry barriers due to duopolistic market and price sensitive consumers, as the crucial ones. “The rising sugar and cocoa prices are putting pressure on the companies to innovate with ingredients, packaging to offer better prices for the mass market,” she says. Simultaneously, brands are also working towards managing the perception of chocolate having a negative effect on health. While this industry is thriving in India, mature chocolate markets, especially in Europe are experiencing a slowdown. Marcia Mogelonsky, Director of Insight, Mintel Food and Drink, feels that the strong foothold of this industry is great incentive for major players like Mondelez, Nestle and Mars to mark their presence in the Indian market. n -feedback@pitchonnet.com

Pitch | November 2012

COLUMN

Flipping the Kart of visual concerns A paradigm shift from Custom-Made to Customer-Driven promotional campaign Just log on to www.flipkart.com.” The campaign helped capture the attention of internet users, as was evident in the phenomenal increase in the number of hits the website recorded. TVCs in the subsequent campaign – ‘No Kidding, No Worries’ portrayed children modelled as adults in conversational contexts. Focus on ‘childadults’ in the campaigns has helped achieve two key promotional objectives. Firstly, it helped clear the clutter, increasing audience receptivity to what’s being said; secondly, subtly portrayed the ‘beginnings’ made by the Indian consumer to shop virtually. These ads stirred interest among consumers in the way even routine service terms was communicated. These included – guarantee of original products, cash-on-delivery and a 30-day replacement policy, forming the end note of the popular TVCs. Positive acknowledgement of the concerns pegging the minds of the Indian consumer on virtual shopping has been aptly addressed in these set of Ads, invoking the desire to shop online, for those who have been wary so far. The latest campaign titled ‘Flipkart It’ introduces two loveable characters – Mr Forgetful and Mr. Impatient and their delightful shopping experiences on Flipkart. The campaign insight is inspired from customer experiences and feedback. While this idea did run the risks of making the content appear matter-of-fact; the creative execution of the Ads deserves a

10/10. The fictionalised representation of Mr. Forgetful waking up to a stuffed idli breakfast to thanking the Almighty by doing an ‘anga pradakshinam’ seems so very rooted to the context in a heart-warming manner. On the other hand, Mr Impatient’s hasty ironing spree using two iron boxes simultaneously while wearing a school-boy PT shoes is a rendition guaranteed to plant a smile on the viewer’s face. At a subconscious level, the choice of the characters helps one relate to a latent part of ourselves, as seekers of convenience or being ambitious in seeking service delivery. When a thought being communicated connects to your being, a positive action is perhaps inevitable.

A grandfather-grandson duo visiting the store was busy taking note of titles of interest in the new arrivals section. Their master plan, I gather was to ‘shop for title names’ and then have them ‘Flipkart-ed’

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Smitha Sarma Ranganathan Professor, Marketing Management, IBS Business School, Bangalore sarma.smitha@ibsindia.org

Setting the Field FlipKart – the Indian poster boy of e-tailing has yet again managed to fund its ambitious growth path for the next three years by roping in a whopping $150-million investment. What sets Flipkart apart in its league, is its innovative and insightful approach to understanding the Indian consumer and etching the marketing game plan. While most other contemporaries decided to wait for the ecommerce ecosystem to develop, Flipkart identified the systemic deficiencies and defined what it takes to provide a truly differentiating consumer experience. The Game Plan The game changing strategy of FlipKart lies in its’ connect to the Indian consumers’ psyche – in terms of implied expectation and explicit personality driven purchase parameters crucial to any purchase decision. This aspect is evident in the promotional strategy adopted. The choice of mass media vehicle such as Television is an indicator of the company’s vision to own the e-tailing space in India. An analysis of the content of their ad campaigns helps one connect them distinctly to the popular AIDA framework. The first TVCs of FlipKart focused on achieving awareness levels about FlipKart. It featured an old grandmother who could magically order books with her pet mouse, much to the amazement of the village folk. The ad ends with the message, “You don’t need magic.

Pitch | November 2012

The Victory Lap A recent visit to a boutique bookstore helped me appreciate the palpable effects of these insightful campaigns. A grandfather-grandson duo visiting the store was busy taking note of titles of interest in the new arrivals section. Their master plan, I gather was to ‘shop for title names’ and then have them ‘Flipkart-ed’. The young-adult enthusiastically shared that FlipKart lets him have the best of deals while the elderly gentleman was all praise for their prompt delivery service which even accepted cash on delivery! It was the moment of truth for me when I realised that FlipKart had indeed managed to flip the cart of virtual woes for the Indian customer! 

BOOK EXTRACTS FEATURE MOTHER DAIRY

Milking national success? Looking to go beyond the National Capital Region, Mother Dairy has shifted its positioning from ‘health’ to ‘motherly love’. Will the new positioning excite customers? By Aditi Malhotra

other Dairy, which has been a central player in the branded milk segment in Delhi and NCR for over three decades now, is all set to expand its market base in the country. Thus, the company has gone aggressive in its communication and marketing strategy. For instance, it recently introduced its milk packs in contemporary packaging. The six variants of the milk brand, which were earlier differentiated on the basis of colour, are now available in a single colour but with varying designs to display brand uniformity across markets. This has been followed by a new campaign launched in early October. Created by Ogilvy India, the campaign titled ‘Maa Jaisa Koi Nahi’ is a considerable shift from the existing corporate tagline of ‘Sehat ka Saathi’. Describing the tribute that the brand intends to pay to mothers, Amitava Mukherjee, Business Head, Milk Division, Mother Dairy Fruit and Vegetable, says, “We thought it was time for Mother Dairy to celebrate the biggest part of its name and pay a befitting tribute to the mothers of this country.” He also explains that the objective behind putting the communications strategy on active mode has been to reach out to the national audience. “As is the case with any organisation, we have an aspiration to expand our scale of operations and reach out to people outside the capital. Since, we are covering many cities outside Delhi, we

Moving to newer terrains means tackling competition from brands that have a strong regional foothold. This could qualify as a considerable trial even for a brand like Mother Dairy felt that it is the right time to reach out nationally through a TVC,” he says. Hence, during the course of the last four-five years, the brand has paved its way beyond the Delhi and NCR belt. As far as existing markets are concerned, the brand has a presence in Uttar Pradesh, Uttarakhand, Haryana, Rajasthan, Andhra Pradesh and Tamil Nadu, and is soon to be launched in cities like Pune. Entering the contest However, moving out to newer terrains

may mean tackling competition from brands that have had a strong regional foothold. And, this could qualify as a considerable trial even for a brand like Mother Dairy, which leads in the capital with a market share of 50 to 70 per cent across categories. Complementing this is a robust distribution channel, where the product is available to the consumer via 15,000 retail points and almost 3,000 exclusive booths. But how does consumer behaviour drive response to a new entrant for a

Pitch | November 2012

product like milk, which is largely necessity based? Ramanujam Sridhar, Founder CEO, Brand Comm, highlights the temperament of a consumer for a high involvement product like milk, when he says that consumers are usually ‘locked into’ what they drink and might not see a real reason to look for an alternative unless, there is an unavailability of the preferred brand. “While operating in a category as crowded as milk, the only challenge lies in the fact that the customer should not reject your brand,” he says. DS Rawat, Secretary General, ASSOCHAM, points out yet another significant trend. He says that consumers today are becoming increasingly cautious of adulteration. An analysis by Tata Strategic Management Group, on the dairy sector, also lists out increased food safety and hygiene and high adulteration concerns as one of the primary causes pushing consumers away from unorganised sources to branded or packaged sources. “Mother Dairy has a great sense of credibility backing it owing to the support, which has been rendered by the government itself. Challenges are limited and all efforts need to be channeled towards aggressive visibility,” Rawat says. According to Ashoo Advani of Chlorophyll Brand and Communications Consultancy, for milk and milk products, the primary virtues that consumers look for are purity and freshness. These are the table stakes in this space. “Most brands operating in this space will try to own these associations, but owning these will not create any differentiation,” says Advani while declaring the real test for brands in this category. Winning it? In a milieu, where the dairy sector in India is transforming from a commoditised-low margin liquid milk business to a branded value added play, dairy products also need to begin to start building aspirational brands. And, this

Pitch | November 2012

“We thought it was time for Mother Dairy to celebrate the biggest part of its name and pay a tribute to mothers” Amitava Mukherjee Business Head, Milk Division, Mother Dairy Fruit and Vegetable

“Mother Dairy has a great sense of credibility, owing to the support, which has been rendered by the government” DS Rawat Secretary General, ASSOCHAM is akin to marketing and brand creation in other packaged food and beverages. Running parallel is obviously a cluttered channel of competition. The dairy industry in India is largely dominated by the cooperative sector and approximately 60 per cent of the installed processing capacity lies in this sector. A key national player in Mother Dairy is accompanied by native brands like Amul and global counterparts like Nestle, at the national level. There is

also a strong existence of competitors like Indiana Dairy Specialities, Jagatjit Industries and the Karnataka Milk Federation, at the state level. Pankaj Gupta, Practice Head- Consumer & Retail, TATA Strategic Management Group, feels that for a brand, which moves beyond its regional domination into other geographies, it is imperative to offer a differentiated proposition that is relevant to consumers in these new geographies. “In some cases the proposition may have to be different from that offered by the regional brand in its home market,” he adds. Another key challenge also lies in distribution for brands, which traverse beyond their native boundaries. Gupta explains that there is usually a gap in access to exclusive dairy outlets that are owned or managed by local brands and have to vie for presence in the local grocery stores along with other local brands. But what works in favour of a brand like Mother Dairy is the fact that it has steadily built equity over the past three decades, thereby creating an active opportunity in semi-urban and rural areas. DS Rawat says, “In the rural sector, the sale of milk is growing at a CAGR of more than 17 per cent. With higher disposable incomes and the wish to procure packaged milk, Mother Dairy has a great chance if it intensifies its networks in these areas by milking the already existing distribution channels.” Needless to say there is only a glorious prospect to unlock with the Indian dairy industry expected to reach ` 5 lakh crore by 2015 (Source: ASSOCHAM). Therefore, for existing contestants in this market, efforts need to be guided towards inducing consumer trial and loyalty in new geographies, to win the race not only against regional giants, but also against players who have expertise in the growing segment of value added dairy products. n -aditi@pitchonnet.com

COLUMN

Dead brand, Walking! If you were born in the ’70s, there is no question of not growing up with soft drink brands like ‘Campa Cola’, ‘Gold Spot, or ‘Thril’; and ‘Indrajaal Comics’ ...

Samrat Sinha

Head,Telesales, Tata Teleservices

samratsinha@yahoo.com

n your adolescence, you would have vroomed on a ‘Bajaj Chetak’ or licked a ‘Dollops’ ice-cream. As you crossed into adulthood, these brands fell by the wayside as Dead Brands. Brand death is an interesting phenomenon which is caused by several factors like brand obsolescence, company mergers & acquisitions, product failures, category & company extinction and last but not the least-willful slaughter by the brand owners. In the Indian “brandscape”, Brand Obsolescence led brand deaths are exemplified by dead brands like HMT & Allwyn in watches, Dalda & Gagan in the hydrogenated vegetable fats, Postman & Rath in edible oils, Viva & Maltova in health food drinks; where smarter rivals edged them out into oblivion. The march of Titan in timekeeping, Dhara, Saffola & Fortune as healthier alternatives in the edible oil category were quite a handful for the former brand leaders. The massive adaptability shown by Horlicks, Bournvita & Boost propelled them unscathed into the new millennium in the health drinks’ business. Mergers & Acquisitions amongst companies is by far the most notorious culprit that causes brand deaths. When TOMCO was acquired by HLL in 1993, many illustrious brands were pruned to suit the acquirer’s brand portfolio. So, soap brands like Jai, Moti and detergent bars like OK and 501 met abrupt death. GM did the

Mergers & Acquisitions amongst companies, is by far the most notorious culprit that causes brand deaths 38

same with Daewoo car brands - Cielo and Matiz. Internationally too, this is an accepted norm - Compaq getting butchered post acquisition by HP. Product Failure accounts for the lion’s share of brand demise but it is not that heart rending, as it kills most brands in their infancy when consumer connect is less and the said brands are not a major force to reckon with. Vanilla Coke, Ganga Soap, Hostess chips, Godrej’s Jumpin, Newport & RufnTuff jeans are some brands falling due to the product not clicking with the consumer. Category and/or Company extinction is a sad story altogether where one day, the product category gets redundant or the company promoting the brand goes phut. Examples here are dime a dozen - Mobilink in paging services, Ceasefire in home & SOHO fire extinguishers, Remington typewriters, and Luna in mopeds. Here, the category vanished overnight with the advent of cellular mobile services, home & office safety solutions, computers, mid & high-end two wheelers respectively. Companies perishing have thrown a long list of brands to bite the dust - Weston, Salora, Dynora, Sonodyne in TV sets manufacturing; Akai & BPL in full range consumer electronics; Tobu in tricycles; Mescos in footwear etc. Willful slaughter of brands by the owners or brand custodians is both a mix of financial prudence and fickleness on their part. When a reasonably healthy brand not generating expected or over expected cash flows comes up for expenditure renewal or budgetary support, many entrepreneurs

develop cold feet and plug off. For want of fund infusion, the brand gets killed gradually. There are instances, where the owner wants to flirt with a new business, with anticipated disproportionate returns and loses interest in the modest inflows from the current brand. If brand extensions are not amenable to the new product line, then the old brand is choked to death - Chetak in the scooters’ category. Some bygone brands do have the propensity to rise from the ashes like a Phoenix and re-incarnate themselves. This can happen provided either of the two main brand re-birth rules are observed: Rule 1: A sizeable section of the old generation is alive to consume and fuel word of mouth publicity & educate the new generation about the old brand folklore. Rule2: The old brand is malleable to a new product or service category. So we have possibilities like Indrajaal comics making a comeback as a cartoon series and home video or Ceasefire getting into building & safety solutions. Maverick brand revival can be the likes of Maltova taking a new lease of life as a Scotch brand and Viva coming in as an air freshener! The brand attic is littered with ghost brands that beg a re-look. The improvisation opportunities are immense and returns on the IP would make a sound business sense if the aforesaid revival rules are applied during evaluation. Any takers on this? Brand managers are you listening?  The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Pitch | November 2012

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Pitch November 2012

BOOK EXTRACTS INTERVIEW Abraham Koshy

earson Education launched the 14th edition of Marketing Management: A South Asian Perspective, co authored by Philip Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha. In conversation with Ruchika Kumar, Abraham Koshy, Professor, Marketing, IIM Ahmedabad, shares certain insights of the marketing world on which the latest edition is based. He also talks about the relevance of customer value, which is the driving force behind all marketing decisions and lessons on social sensitivity that India can impart to the world. He also dwells upon the emergence of digital media and the influence of external environment on the brand’s internal marketing strategy. Excerpts… Please throw some light on the latest edition of Marketing Management and how

Then we have looked into social media marketing, which was not covered earlier. Another important aspect is that it covers the parameters of Indian research and marketing. Hence, it is not just a text book but a reference book for students and practitioners alike. Moreover, while previous editions had examples, this one has the most recent and updated examples relevant in today’s times. How relevant a guide is it for real practitioners? To our MBA students we tell them that the orientation of the book is towards the practitioner, so we forcefully mould them into a place where they have to start thinking like a practitioner. Once a marketer told me that it was the first time he was reading something like this after many years of passing out of col-

Horlicks, 3 idiots, and many more. What is the relevance of 4Ps in today’s times, when most marketers say that the marketing world has moved beyond that? First of all I think there is a lot of misconception about the 4Ps of marketing. Most people and I mean practitioners, who talk about the 4Ps, do not even understand the true meaning of that. They wrongly classify the 4Ps as coined by Philip Kotler. It is not Kotler but Jerome McCarthy who coined the concept and Kotler emphasised on it. It is nothing but a classification, which lists out all the decisions a marketer would take. In simple words, 4Ps is a list of all decisions related to marketing a product, price, distribution which is called as place and communication, which is called as

Most practioners don’t understand Abraham Koshy | Professor, Marketing, IIM Ahmedabad it is different from the previous ones? The important differentiating factor, which marks a departure from all the earlier editions, is that the entire book is anchored on the theme of customer value. There are seven sections and each is classified under the dimensions of customer value which include asessing, choosing, designing, delivering and communicating customer value. The other important aspect is that it is far more customised for the South Asian and particularly Indian audience. The 21 chapters start with brand new opening vignette that provide insights into the marketing practices and challenges of Indian brands such as Tata Swach, Godrej Chotukool, Infosys, Vodafone’s Zoozoo, LIC and many more. There are over 100 caselets and each concept is explained through examples. Each chapter also has coverage related to rural marketing.

lege and he found it extremely relevant in today’s environment. In fact, we ran a workshop for the armed forces and to my delight, one of the officers told me that he also reads our marketing books. So, this book does not distinguish between a student and a marketing practitioner, it treats everybody as a practitioner. Also, we Indians have a tendency to learn through examples and the book tries to capture as many global and Indian examples relatable in today’s context. Some of the important international ones covered include Yahoo, Google, Nike, CISCO, Walmart, Ikea etc. And we balance them with Indian case studies like Hariyali Kisaan Bazaar, Women’s

promotion for rhyming purposes. So, this book covers the central tenet of customer value on which the whole business of marketing is driven. We have seen the disaster of 2008 where marketers were wrongly focusing on share holder value maximisation, because it is customer value maximisation that leads to the former. So, the theme is mainly about driving all the 4Ps of decision making based on customer value, which becomes central to any business strategy. Apart from the internal factors of a brand, what are the external factors influencing the marketer’s and consumer’s environment?

It is not Kotler but Jerome McCarthy who coined the concept of 4Ps - a list of decisions a marketer would take - and Kotler merely emphasised on it

Pitch | November 2012

There are many external factors that are changing the dynamics of marketing. For example, we speak of regulatory framework. And to exemplify that further, we in India have the red and green dots to classify food products, which is unique to the Indian market. Thus, it has implications in terms of packaging and positioning of a product, hence, regulation plays a very significant role, so does economic environment, technological dimensions, consumer’s own social psychological aspects, and the fundamental shift in consumer pattern. For instance, what was a luxury earlier might have become a necessity; as today the orientation has changed and here media also plays an important influencing role. In addition, the emergence of digital and the way information is accessible, has also changed the marketing sce-

takes, you won’t learn. Hence, you ought to make mistakes as this is a new genre of marketing and no one has mastered it yet. What marketing lessons can India impart to the world? Many of these examples, which are listed in the book, are relevant for western countries. For example, India can teach a lesson to the globe in terms of social sensitivity. Look at Narayana Hridalya and the level of social sensitivity they are driving, which the world can learn from. Hence, it is not only addressing a marketing issue but a social cause. We have also discussed issues like the problem of kitchen waste, which is common to every Indian household and answered the problem with

a simple solution. There is a daily dump product where you have a terracotta bin where you can put the dump and it will turn into compost. Hence, you are able to address the issue and also get natural manure for your plants etc. In fact, Kotler himself said that there is a lot that the world can learn from the Indian market.  -ruchika@pitchonnet.com

meaning of 4Ps nario to a great extent. Added to this is the propensity to spend, which has also changed drastically. So, while for me footwear was a luxury or essential item as it wasn’t advertised the way it is now, it has become more of a fashion statement for the youth today. How is digital influencing Indian marketers, where all are jumping into the bandwagon, yet not fully optimising the space? You are right about that as I am also not sure how many people have really understood the digital space. However, it is a new thing and everyone is grappling to understand the space. People are on an experimental stage in this area with the emergence of tablets, smart devices, mobile phones etc. The only rule that brands are following is that one needs to be there in the digital arena. And the fact is that unless you are there and making mis-

Pitch | November 2012

BOOK EXTRACTS

FEATURE GAS

Nimble feet

After tasting success with its men’s footwear range down South in India, the premium apparel brand is moving up North. How’s it planning to woo the up-market buyer? By Abhinav Mohapatra

remium Jeans brand GAS has launched its men’s footwear range in the country. Establishing itself in the southern Indian market, GAS men’s footwear is now moving north and has already opened 40 shop-in-shop stores in various retail outlets and multi brand chains in Delhi. But will the Grotto SPA from Italy be able to woo the Indian consumers pegging it with the apparel brand? Looking up In the south GAS men’s footwear is four to five months old and it is planning to go pan India. “We hope to cover the entire Indian market across markets by end of November,” says Rajeev Uppal,

CEO, Suncorp Exim India. The brand does not have any EDU or stand alone stores, as it is following its sales through distribution channels. The reason, as Uppal shares is that standalone stores are capital intensive and there is a limit to open stores since GAS men’s footwear cannot fill the store. “We are hence taking the traditional route

Subject Matter Expert, says that if the luxury brands tie up with modern retail chains, the chains get a good margin. “Multi brand retail gives the luxury product a value, which is branded on lifestyle and aspiration. These days a luxury brand can have an exclusive corner in a multi brand outlet, which not only increases the footfalls into

GAS has tied up with modern retail stores like Lifestyle, facility chain stores like Regal, Inc5 and is present on online platforms such as Myntra, Jabong and Yebhi as far as the distribution channel is concerned,” he adds. The brand has tied up with modern retail stores like Lifestyle, facility chain stores like Regal, Inc5 and is present on online platforms such as Myntra, Jabong and Yebhi. V Rajesh, Retail

the outlet but also gets the product within the reach of the consumer,” he adds. As the brand is still thin on presence across the nation, it is refraining from using any media platform for publicity or advertising. “We are primarily using BTL, and we are also looking at major periodicals in magazines starting next year,” Uppal appends. He also shares that according to an Informal survey done before entering the market, 90 per cent of the people were aware of the brand. According to a report by ASSOCHAM, the Indian footwear industry, which is at a level of about ` 22,000 crore is growing at an annual growth rate (CAGR) of about 15 per cent and is likely to reach about ` 38,700 crore by 2015. Dominated by men’s segment, which has a market share of 55 per cent followed by ladies’ at 30 per cent and

Pitch | November 2012

kids at 15 per cent, the online shoe shopping accounts for eight per cent of the overall industry and is expected to reach about 20 per cent by 2015. Value for money approach On the increasing influx of unorganised players, Uppal agrees that the Indian footwear industry is witnessing a lot of products that are imported in grey and sold at cheaper costs. “We are also importing footwear but we are also keeping in mind the target audience, vis-à-vis the price the footwear can fetch. Not to forget Indian consumer is the most sensible consumer and he derives the best value for money for his spends,” he adds. GAS Men’s footwear India is also taking a localised approach to its products in the Indian market. Although it claims that it is getting all the aspiration on styling from its parent brand in Italy, it is changing the basic material to suit the Indian conditions and the Indian pocket. V Rajesh says that the footwear market is unorganised and there are a lot of local products. The purchase behaviour is driven by price because of wear and tear and the Indian conditions. “Now the minute you come into the top end of the market it is dominated by brands like Bata. Only in the last few years there has been a boom in the branded sector,” says Rajesh. But what stage of market penetration is GAS at? Is it riding the equity of the apparel brand? Uppal says that it is a very small player as of today, and the target is to reach out to the rest of the country and suit the Indian pocket. “The basic focus is right now to create the right kind of merchandise so that we can fulfil the aspiration level of the consumer by giving them a good product at affordable price. We are starting with a flip flop at ` 600, so a guy

“We are starting with a flip flop at Rs 600, so a guy who aspires to wear GAS jeans, probably will start wearing GAS footwear at a much cheaper price” Rajeev Uppal |

Best foot forward ASSOCHAM predicts a good growth for the footwear segment in India l Footwear industry pegged at ` 22,000 crore in India l Is growing at a CAGR of 15% and likely to reach about ` 38,700 crore by 2015 l 55% market dominated by men’s segment, followed by ladies’ at 30% and kids at 15% l Online shoe shopping accounts for 8% of the overall industry and is expected to reach about 20% by 2015

who aspires to wear our GAS jeans probably will start wearing GAS footwear at a much cheaper price,” he adds. Growing in the shadow? He also appends that the footwear brand is piggybacking on their apparel image and

“The footwear market is unorganised. The purchase behaviour is driven by price because of wear and tear and the Indian conditions” V Rajesh | Retail Subject Matter Expert Pitch | November 2012

CEO, Suncorp Exim India

recall. “It is a common practise; I have earlier seen this happening with Levis; when a guy goes to pick up a pair of Levis jeans he also picks up footwear that goes with it from the same brand. Hence, we are trying to use their shadow to do our business,” says Uppal. Not commenting on the revenues, Uppal narrates that the returns from the ecommerce sites have been good as Myntra is doing great for the company and others like Yebhi and Jabong are picking up. Taking into consideration that 80 per cent of the footwear retailing is still unorganised, Uppal feels that that the Tier II and III towns are important as they are doing very well. “One has to go to multi-brand outlets, which are looking for new brands that give them value additions. Since the average selling price is more, it increases their kitty as far as margins are concerned,” he appends. Experts feel that the luxury product space is big enough in India for brands to jump in and create a market base. “Luxury footwear has seen a boom because people are becoming brand conscious,” says Rajesh. He cites an example of Hush Puppies, which he says was an aspirational brand. “The moment it was attached with Bata, the reaction was ‘Oh Okay!’,”says Rajesh. He believes that people look for brand value these days. There is a latent need among people about the connection that a brand creates and how it positions itself. He gives another example to explain his statement, “Louis Vitton key chains are nothing but simple accessory, however, the brand increases the value of the normal leather that goes into making it. Therefore, if you position it as a premium brand people will be pulled towards it,” he adds. n -abhinav@pitchonnet.com

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BOOK EXTRACTS INTERVIEW Sabyasachi Mitter

Clients need to be handheld to think digital Managing Director,

Sabyasachi Mitter | Interface Business Solutions

nterface Business Solutions was started in 2003 to provide services on Web Design and Development. Since then, it has walked parallel to the evolution of the digital space. It now operates in six different verticals with almost forty clients and expects a turnover of ` 32 crore this year. Sabyasachi Mitter, MD, Interface Business Solutions talks to Aditi Malhotra about opportunities associated with digital, as a marketing medium. Excerpts… How has been Interface Business Solutions journey so far? In 2003, when I started this company, digital was largely all about making websites, and it was a struggle at that time. But, from the early stages we decided that unlike traditional digital media agencies, the differentiation we would bring to the table is technology. So, the first few projects we had done were e-commerce projects for companies like Bajaj Electricals, Morphy Richards. And in those days, e-commerce was not even heard of and nobody would believe that anything could be sold online.

The real growth for the company started in 2009, when we got the Tata Docomo business, which allowed us to move into many more verticals in terms of the digital spread that we had. That’s when we got into social media, digital media planning and buying. And, today, the company operates in six verticals. Web design and development, which is what we started as, remains an area of expertise. We are now Microsoft Gold Certified partner and we have our own product, in the ecommerce space. Work on digital media planning and buying spanned over 2008-09 and we started mobile in 2011. Can you highlight key trends that have influenced the growth of digital? When I look back, not just to 2003, but to 1996 when I launched the first website for Asian Paints, the first contributor is obviously the penetration of internet, which is why a

lot of companies and clients began looking at the Internet far more seriously. Between the year 2003 and 2006, the trend largely was in terms of search and compare. Users were looking at the Internet as a medium for content and information. There wasn’t too much trust in transaction or commerce. It was thus, more about getting help with decision making rather than actually monetising the brand or getting into commerce. The real change was in 2007-2008 when social communities started taking centrestage. You had Orkut, where people actually had a reason to spend longer amount of time online whether it was through mail or messengers or Orkut and then subsequently, Facebook. That is where brands started realising that there was sizeable conversation happening and it made sense therefore, to have a clear strategy on engaging people and converting them to customers.

There are no long term loyalties with e-commerce websites. They are really driven by ‘Who has the best price?’ and ‘Who offers the maximum discount?’

Pitch | November 2012

The defining moment for the internet was when we crossed five crore users, which meant that most of your high-net-worth customers and the youth, especially from a SEC A profile. And, that is the time when airlines and railways were also moving in a big way towards ticketing online. That’s when the comfort of paying money online also started coming in. In the last two years consumers are not just looking for information. They believe that they can interact with brands. Things are getting even better with mobile internet marking its space and smartphones becoming cheaper. Is it safe to assume that digital is a medium better suited to target the youth? A sensible brand would have already identified their target audience. For example, if you want to run a campaign for a brand like Renault, you would have various psychographic profiles in place. It’s not just about a guy, who is above the age of 35 years, who can buy a car. It is also about who is influencing the decision. It is the youngsters who influence the purchase decision. If you look at another extreme, for a brand like Bingo, in the chips category, the maximum amount of consumption would happen in teens or early 20- year segment. On digital, unlike traditional media, when you take out an ad on the front page of a newspaper, you cannot really know who exactly saw the ad. Platforms like LinkedIn and Facebook allow you to target by age, city, profession, education or even by a particular workplace. It is also important for marketers to know that digital does operate like any other medium. It is the objective of the campaign that needs to be clear. How comfortable do you think are marketers with this platform? It is a big problem. But, to understand why it is one is more essential. Fifteen years back, most of my colleagues, were doing television, print and market research. In ten years’ time, when they began embracing top management roles, they had never worked with digital. As agencies, we also need to constantly keep ourselves abreast about what is happening and what is possible. The mix of technology and creative, which defines digi-

Pitch | November 2012

tal, is evolving by the day. The challenge for us as a company is also to work very closely with our clients, educate them and literally handhold them to think digital. Can you cite an example of a recent campaign, which has followed this process? We’ve recently handled a campaign for Kotak Mahindra Bank. The client has been working on digital for some time. One of the first things that we realized was, that as a bank, on social media, everybody was largely talking about the same things- tips on finance, how to save money and related stuff. We asked ourselves how a brand like Kotak can differentiate itself from the others. We came up with a concept of taking their brand ambassador, Subbu, onto digital in an interesting way by co-creating a book on savings by the entire Social Media community. While Subbu would be the editor of the book, the actual content of the book would come from the community. The purpose was to extend the whole concept of savings in a very Indian way. The campaign also involves the physical publication of the book, which would be available in book stores. What is the scope of marketing via social media beyond creating parallel engagement? As an agency, we started social media marketing about three years back when engagement was a buzzword. But, most of our key clients have moved on from there. On Facebook itself, for Tata Docomo, we had done a monetisation of over one crore directly from the Facebook audience. This year we have launched something called ‘Twitter Commerce’ which is recognised even by Twitter since it wants to develop this as a commerce product on social media. For us, social media is not about talking to your fans. Needless to say, that’s where one starts. But, the end point has to be business returns. Otherwise, people will begin to lose interest. If any media cannot deliver business requirements, the honeymoon period is bound to rub off. For clients, who have been operating in the digital space for over a year, the focus is to monetise and get better data insights. Do you think social media is still in its

nascent stage in India and it is hard to look beyond Facebook and Twitter? I think the general awareness of Indians when compared to their international counterparts, on emerging trends, is unfortunately much less. Whether it’s Pinterest, which has a only 2,00,000 users in India as against a one-crore global user base or Instagram, which has had many successful campaigns integrated with it, Indians typically take longer to catch on to a platform. India was probably the last country, except Brazil, to ditch Orkut. Till two years back, India was lagging way behind the charts even as far as the number of Facebook users is concerned. Therefore, such platforms will take time to reach the critical mass in India. The second problem is also that Indians are not very comfortable with multi-tasking. So people, who use Facebook, would want to do everything on Facebook. However, in the western world, somebody who uses Facebook, might actually be using Instagram on his iPhone. The idea will be to choose a social media platform ideal for photography. The same person might be on Twitter because he has a point of view and is communicative enough to write it in 140 characters. In India, however, majority would just go and Like a post on Facebook. It is therefore, about the way we are as a community. What, according to you, should an ecommerce site do to differentiate itself? I don’t think customers really choose one site over the other because of features. First, there is obviously a market leader like a Flipkart, which has a top of the mind recall. Large sections of the consumer base extensively indulge in price comparisons, especially in the electronics category. And, within a consideration set of 5-6 sites which you will trust, if somebody is cheaper, a customer will immediately switch loyalties. Thus, there are no long term loyalties with any e-commerce website. At this point of time, it is really driven by ‘Who has the best price?’ and ‘Who offers maximum discount?’. It’s also interesting that more and more traditional players, who have an established credibility, are going online and taking these e-commerce players head on. n -aditi@pitchonnet.com

BOOK EXTRACTS

FEATURE Merchandising

Carrying the Oxford pride Oxford University has brought to India its merchandising and is hoping to target the youth beyond the loyalist alumni By Arshiya Khullar

hough brand licensing is an old business practise across the globe, it has slowly gained momentum in the Indian market only in the recent past. The trend has picked pace owing to the emergence of modern, organised retail and a strong manufacturing base in the Indian market. Moreover, the rise of the affluent Indian consumer class and greater international exposure has further paved way for greater collaborations between international licensing companies and Indian business houses. According to industry estimates, the size of the brand licensing market in India is around $1 billion, which is small in comparison to the total size of the international brand licensing market, estimated at around $200 billion. In terms of product categories that are the most popular when it comes to licensing, apparel, with 90 per cent of the market share rules the roost.

Fact File India is among top 5 countries for Oxford in merchandising l International brand licensing market, estimated at around $200 billion l $1 billion - estimated size of brand licensing market in India l 90% market share governed by apparels l Oxford is targeting middle class and young adults l The price range for apparel and other offerings will be in the premium to mid range

Go India To tap the untapped potential in this space, a host of international brands are entering the country via the licensing route. Earlier this year, there were reports of apparel maker, Arvind Lifestyle Brands entering into a licensing agreement with French brand, Elle to retail women’s fashion wear in India.

“The consumer valuing the University as an education brand will not place the same value to it as a consumer brand” Chris Evan | MD, Oxford University 48

Another such player, to adopt the strategy, is University of Oxford, which will be launching its merchandise-apparel, educational toys, and stationery among other things in India next year. Oxford Limited, which manages the global brand licensing programme of Oxford University, entered into a partnership with Bradford License India last year to search for licensees in India to introduce the brand in the country. For the record, BradFord is a brand licensing agency present in India since the last four years under a joint venture with Franchise India. At its end, Oxford has been selling its merchandise in different regions of North America, Europe, China, South Korea, and recently Brazil. For Robert Ridder, Partner at Bradford, the aspirational Indian population is one of the strong reasons behind the company doubling its activities in the country every year. Hence, In India, the product portfolio would be the same as other countries with certain amount of localisation to suit the taste and cultural sensibilities of the consumer segment. Apparel is the first category that will be launched in India followed by scientific toys, ‘Back to School’ merchandise- a range of school tools, and stationery. The products will be embellished with patterns and designs specific to the University. While Oxford’s product range will only be available in retail outlets by next year, the company will be announcing its official partners by the end of this year. Chris Evan, MD, Oxford Limited, who was in the capital to attend a conclave on licensing, refused to divulge details about the licensee, but spoke on the strategy that will be followed in India.

Pitch | November 2012

Young adults and mid-age consumers pan India are the core target audience for Oxford products throughout the world, including India. However, the Oxford Alumni is not, as many would assume, the key consumer market for these products, according to Evan. In terms of pricing again, while one would expect a premium tag to be attached to products affiliated to a University of such stature, the price range for apparel and other offerings will be in the premium to mid range, not high end. At such price points, the company is looking to engage the burgeoning affluent middle class in India. “We have tried and tested this principle that a famous name equals high premium. Our famous name relates to education. When you translate an education brand into a consumer brand setting, you need to understand that the consumer valuing the University as an education brand will not place the same value to it as a consumer brand. We have to tailor our expectations to consumers’ expectations,” says Evan. Hence, a lot will also depend on the customers who will be attracted to Oxford merchandise. Aspirational students nursing dreams of studying in the university and alumni are the obvious loyalists. According to Saurabh Uboweja, Director, Brand Strategy at Brands of Desire, a strategic brand consulting and design company, this may also turn into a challenge for Oxford. “A challenge for brand licensing in India for a brand like Oxford University is the knowledge about the brand. No doubt it is an iconic international brand but only for a few. The brand is still not deeply entrenched in the minds of the people here. I would like to believe that this might be a compelling reason for Oxford University to license in India – create more awareness,” he opines. With the objective of communicating a brand proposition, imagery, lifestyle that is unique to Oxford, the company’s marketing strategy will be a mix of in-store activities, point of sale communication and print led campaigns. To effectively reach its intended TG, the brand will work with the upper and middle tier retailers

Pitch | November 2012

Brand Oxford is not deeply entrenched in India. This could be a compelling reason for Oxford University to license in India and create more awareness as opposed to malls and other high-end retail chains. Lessons from the West Oxford branded merchandise throughout the world, at retail, is estimated to be around 50 million pound sterling. While Evan does not share the targets set aside for India, he does mention that India is one of the top five countries for the company. China figures right on top followed by Brazil. However, a major obstacle in India, according to Evan, is the dearth of pan Indian organisations which can sell in different parts of the country. “Mostly there are small retailers that serve specific geographic parts. This is very different from the western

model of retail where one can see the same flavour of retail in any store in the country,” he appends. There is also a yawning gap between the levels of maturity between the two markets. “It is slightly over heated at the moment and in its start up phase even after 20 years,” says Uboweja. You might have a dozen brand licensing agencies in India but they are just struggling to define their niche. There is not a single player who has truly emerged out as a mature frontrunner in the industry yet. But the experimentation is going on pretty well and I am sure it will eventually work out as a very promising market in the next five years or so. n -arshiya.khullar@pitchonnet.com

BOOK EXTRACTS

FEATURE Stepout

Find a friend Will Indian youth take up to online dating? By Abhinav Mohapatra

emember the moth-eaten chat rooms? ‘Online dating’ was picking up pace in India during the dial up era. It lost its relevance when social networking websites entered the market. But what now of the dating sites? StepOut formerly known as Ignighter founded in 2008, a New York based online dating website came to India in 2011 and in one year claims to have established itself as India’s No 1 place to meet new people, and form real life relationships. “We came to India because the market here discovered us and started using our product long before we ever imagined we’d be successful here,” says Adam Sachs, CEO, StepOut, adding, “Our ultimate goal is to encourage users to ‘step out’ into the real world and make real world relationships.” Commenting on the differentiating factor between the Indian site and the one in New York, Sachs says that the site has changed a lot over the past year and a half after conducting months of focus groups, internal research, and studying the usage patterns on the site. “We’ve changed the brand name and positioning away from dating and towards a site that is meant for meeting new people. We’ve also built fun features like live chat,” he adds. According to him, StepOut had about 40 lakh active users and 1.25 lakh to 1.5 lakh new active users every month. With 70 lakh chats messages exchanged, the site has a male-female ratio of 80:20. Ninety five per cent of the users are in the age bracket of 18 to 30 years. Pegging it right How does StepOut position itself in the market in relation to its TG? Sachs explains that the cultural demographics in India are shifting rapidly creating an exciting gap in the Indian online market. He says that,

young Indians are getting married late now. “The arranged marriage rate is lower than it’s ever been. On an average, urban Indians have six relationships before they decide to settle down for marriage. There’s now a sixto 10-year gap from the time that Indians graduate from college and ultimately get married. That group is massive, and these are our users,” he appends. Based in Mumbai, StepOut has no hard core communication strategy but claims to be focusing on word of mouth. “Press

“I love Facebook and I use it all the time. But I don’t want to mix my world of meeting new people with my grandparents” Adam Sachs CEO, StepOut combined with a constantly improving user experience helps to ensure that we’re getting good word of mouth,” says Sachs. He explains that 60 per cent of the users are from the top six cities in India; four Metros, Hyderabad and Bangalore. Social networking vs socialising Sachs claims that Facebook is a great tool for connecting with people one already knows. StepOut, on the other hand, is the market leader for meeting new people.

“I love Facebook and I use it all the time, but my grandparents are on Facebook. I don’t want to mix my world of meeting new people with my grandparents,” he adds. Anand Jaiswal, Professor of Marketing, IIM Ahmedabad, says that there is a change in the Indian environment, a sense of westernisation in most of the spheres of life. “Gradually, these things are expected to come into the Indian market. Dating sites are quite popular to my knowledge in several developed markets so that is the source of optimism,” he adds. At the same time, social media that has completely penetrated the Indian market, has filled up the gap that is existing with this kind of social need. Jaiswal feels that social sensibilities are also to be kept in mind so that they are in sync with Indian values and will have to go through a long process to become a hub. Openly scouting for dating partners is a metro or big city phenomenon. “It is something that you cannot easily see in Tier III or smaller towns,” he adds. Bright or bleak future? The website is focused at online ads like SEM and display as of now and is testing the waters for more. But how responsive is today’s youth to the chat room concept? “StepOut offers a live chat feature, but it’s not so much a chat room as a one-to-one chat, more closely akin to an instant message or Facebook Chat,” says Sachs. Long story short, will this platform really be able to make an impact on the internet users? Will it really be able to come up to the mark as Facebook or Hi5 have? Or will it toil with the fact that, like the country, it is also suffering with a low male-female ratio, for a site pegged at developing ‘real’ relationships? Only time will tell. n -abhinav@pitchonnet.com

Pitch | November 2012

COLUMN

Line Extensions: Necessity and Limitations

Anupam Sengupta

Director – Sales and Commercials, Sony Pictures

Anupam_Sengupta@spe.sony.com

rand growth is about extending the penetration of the brand in its target market building both equity and business. The first source of growth is with existing customers of the brand. There are growth opportunities to be searched, evaluated and exploited. The management of brands in that sense is this permanent chase for growth. Elements that drive growth are: 1. Building volumes while addressing barriers: For example, a soft-drink brand launching Diet variants to address a fast changing youth lifestyle. Brands using this strategy can increase the per capita consumption of the same drink with suitable alterations. 2. Usage/Occasions: Every product is consumed within a particular situation as customers look for specific solutions to their problems. For example, different things can be expected of a Car depending on whether it for short trips, family trips, long getaways. The growth of a brand is often a matter of tackling new evolving situations. 3. Trading up: A classic growth strategy very visible in home video industry – Box sets, Extended cuts, Special Editions etc to capitalise on a collector’s motivations. Digital Movies on iTunes help you trade up to High Definition version of the same film for example. Necessity and Limitations Shelves today are replete with line extensions. They typically take on following shapes: Multiplication of sizes, tastes, forms, ingredients, etc. Line extensions must be

Line extensions helps brands deepen relationships with the same customers often with same needs Pitch | November 2012

distinguished from brand extensions as the latter is a real diversification towards different product categories. Line and range extension in-fact represent majority of new product launches at least in consumer goods. Range extension addresses even finer segmentation to address evolving needs. Few more advantages like low costs, reliable sales forecasts work in favour of range extensions. Current proliferations, however, also result from frantic and hyper competition to occupy shelf space and where market share is directly proportional to facings and big retailers see these as opportunities to extract more margins without sometimes proportionate accountability on sales. There are a few ground rules for line /range extensions that I will elaborate: 1. An extension of the line to enrich the basic promise through diversity – Star Movies, Star Movies HD and maybe say a Star Movies VOD service at some stage. 2. A finer segmentation of a need (variants of shampoo – Pantene, movies (Spiderman, The Amazing – New Superhero /New Villains as a need from this franchise). 3. Providing complimentary products is also an option – A brand might solve or address a specific consumer problem – a shampoo for instance but also extend the line to gel, hair dye and so on. 4. Line extensions helps brands deepen relationships with the same customers often with same needs. 5. It reinforces the selling power of the brand and creates a strong brand image by staying very close to the initial product. Facilitates distribution and comparatively marginal costs linked to retailer margin, packaging and product

development. 6. Line extensions also work well with a point of entry for non-category /non-brand users as it helps. Companies innovate at both end of the price spectrum, trading up in mature markets where private labels dominate and trading down in emerging markets called ‘Bottom of the Pyramid’ innovation. Let’s take an example say that a profitable segment called ‘aspirers’ buys Hollywood movie DVDs at ` 299; these guys are typically from top eight cities, 18-34 years male and are value conscious (not price conscious) but love the experience of watching Hollywood movies on DVD. To increase their per capita income a studio can offer them a combo of relevant genre and price it higher. The new SKU that studio creates to cater to this existing segment helps the consumer trade up without alienating him and is also seen as a value buy for the premium segment who may want to try old classics or perennials which otherwise he is not to keen on. Certain watch-outs 1. Tendency to forget limits and cannibalisation 2. Is it a motivating enough difference to trade up or down? 3. Does it meet profitability objectives addressing the same market? 4. Are the brand assets transferable to new line /range? 5. How fast can a competitor copy? 6. Does it help plug gaps within the existing user base? 7. Does it help as a point of entry for non-users? 

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

BOOK EXTRACTS INTERVIEW HARNEET SINGH RAJPAL

‘Happiness has become generic’ F

rom ‘Hungry Kya?’ to ’30 minutes or free’ and later on to ‘Khushiyon Ki Home Delivery’, Domino’s Pizza has come a long way in the 17 years of its existence in the Indian market. It has subsequently evolved from a functional to an emotional brand. To assert this transformation in its brand identity and sustain high value equity, it recently adopted a new positioning to connect deeper with the consumer. The new tagline stands as ‘Yeh Hai Rishton Ka Time’. In an exclusive interview with Abhinav Mohapatra, Harneet Singh Rajpal, Vice President – Marketing, Domino’s Pizza India, shares more on the changed positioning, insights and future plans. Excerpts…

Harneet Singh Rajpal | VP-Marketing, Domino’s Pizza India

How has Domino’s positioning evolved since it entered the Indian market? When we opened our first store in GK I, New Delhi, in India in 1996, the concept of organised pizza retail was not there. The first task for us was to educate people about pizzas and how it sold the world over. What helped was that we used ingredients that were from the Indian staple diet. So the acceptability on the product side was becoming very fast and we came up with the ‘Hungry Kya?’ positioning. It was all about telling the consumers that, if you are hungry, we have a solution for your hunger. In 2003, we thought of introducing the global USP of the brand, which is home delivery and that was an untapped concept in India. Hence, we started the ‘30 minutes or free’ campaign. We gave consumers the advantage to penalise us if we did not honour the time. People soon started experiencing the convenience of home delivery, which became popular in India. In 2008, we decided to create an emotional bond with the TG and came up with ‘Happiness Home Delivered’ or ‘Khushiyon Ki Home Delivery’. So, why ‘Yeh Hai Rishton Ka Time’?

Pitch | November 2012

If you see our growth, the CAGR has been 48 per cent and the sales at stores have seen a CAGR of 22 per cent. We realised last year that ‘Khushiyaan’ or ‘Happiness’ as a term is generic. There are 30 plus brands in the country which have used it. ‘Happiness Home Delivered’ was becoming defused and hence, we went deeper in understanding how important relationships were, especially when they shared food. Thus, we came out with the new positioning: ‘Yeh Hai Rishton Ka Time’. Has that affected the packaging too? The packaging has not changed for the last 10-12 years. While we have retained our logo, packaging has got a new look as per the positioning. With boxes, the look and feel of the stores is also going to change over time. They will have new graphics and communication lines, exemplifying the soul of the new positioning.

emotional route such as Coke’s ‘Open Happiness’ positioning? Four years back, when we had ‘Khushiyon Ki Home Delivery’ as our focus, there were only a handful of brands that had happiness as their positioning. Today, there are 30-32 brands across different categories that have a similar positioning, including Coke. Globally, brands are realising, an emotional approach, develops a longer lasting relationship with the consumer. If you talk about ‘rishtey’, it is a deeper level of connection and few brands are using it. Again, this is a space where there are different aspects of bonding. We are creating that bond in the food space. There is no other food brand in India that is giving time to relationships. We are most suitable to take up the positioning in the QSR category, because our product is about group consumption. We are now established in 110 cities across 500 stores.

of our journey. When we entered India people did not know pizza so that was the challenge about awareness of the product. The global positioning of ‘30 minutes or free’ was another challenge as it was a task to create the concept of home delivery from scratch. In 2008, when we positioned ourselves as an emotional brand, the language that we spoke became the challenge. The challenge was how to change the functional product to an emotional one without any discontinuity to the running of the business. At this point of time since we are already established as an emotional brand, the challenge is how to map our emotional insights and hence, strongly associate with consumers. So the task is to find stories that are relevant to the brand and with those stories we focus more on our consumers. Are there any new products that you

What all is Domino’s doing in terms of promotion? Apart from promotions on Facebook and Twitter, we have a new website for ‘Yeh Hai Rishton Ka Time’ and there is a new TVC for the same. We are also focusing on outdoor in eight to 10 cities. We are investing in billboards, hoardings, banners at key locations where there is maximum traffic and large catchment areas for our delivery stores. We are creating special brand door hangers and brand flyers, which we usually don’t do, and that will replace our print advertising. Has Domino’s maintained its brand essence with changing positioning? Since this is largely a group consumption meal, we have maintained the core of the brand - the promise of shared joy. With this new positioning are you trying to touch upon a different TG? We have a very broad consumption category that spans from a 10-year old to a TG of 40- to 45-year olds. We do not define our TG demographically and it remains the same. What is your take on brands taking the

Pitch | November 2012

With Rishtey, there are different aspects of bonding. We are creating that bond in the food space. There is no other food brand in India that is giving time to relationships What are your future plans? Stage one is already over with the launch of the TVC and website. Stage two includes lots of activations on social media, like Facebook, Twitter and Youtube. New packages and boxes too have hit the stores; and outdoor too has started. A lot of stuff will be done around the Domino’s delivery boxes and around the delivery bikes, among other things. Has there been any increase in marketing spends too? We invest 4-5 per cent of our revenue in marketing and our business has been growing at a 48 per cent CAGR for the last five years. So, in absolute terms we are investing a lot of money in our marketing year-on-year. What challenges did you face with the changes that took place over these years? It is not only about positioning but the stage that we were in the last 17 years

have launched that complement the new positioning? We have launched a new product, called Taco Indiana. We have taken the Mexican Taco format and tweaked it to suit the Indian taste palate. It is supposed to be complimentary to the communication that we are running about our new positioning. Therefore, there are two campaigns that we will run, one is a brand film of ‘Yeh Hai Rishton Ka Time’ and the other will be on Taco Indiana, which will reflect the brand’s core positioning. What are your expectations from the efforts? We believe that we will have a good mix of messages required to convey the change, which will give a reason for the consumer to come back to us for new offerings. This will lead to brand traction and equity that will help us to the reach the next level of growth in the country. n -abhinav@pitchonnet.com

BOOK REVIEW

The eyes that makes notes There is an excitement and enthusiasm in the title itself. When the function of two of the most vital senses is reversed and made to make sense, you know that you’re in for your share of creative chaos By Aditi Malhotra

LISTENING EYES Author: Kishore Chakraborti Publisher: Times Group Books Pages: 247 Cover Price: ` 299 (Paperback)

n today’s day and age, when consumers are spoilt for choice and subjected to plenty of both, good and bad, it is only fitting that amidst all the commotion, someone decides to take a pen and a paper and jot down all that is every day and, all that is visible. Fact is that more than often, we do remain blinded to the most routine, ordinary and commonplace occurrences. ‘Listening Eyes’ by Kishore Chakraborti is a compilation of essays, all of which reflect predictable Indian behaviour and ultimately, link it to its effective translation in communication (through commercials or otherwise). “The essays in this collection are like morning walks of my mind. A sally into the very world I live in but after an overnight rest. It is like seeing normal things in the shaft of fresh morning light.” The above are the first few lines in the Preface and are almost like a qualified peek-a-boo in what’s going to follow. This particular weave of words provides an ample sense of intrigue, retaining all the objectivity and information for pages to follow. Majority of the writing is anecdotal and is coupled with Chakraborti’s sensory wisdom, as an ad man and a media professional. The essays are more like easy, quick reads and I must mention, fun titles like ‘Bajaate Raho: The revival of the radio’, ‘Customer Care: Who Cares’, ‘Chhote Chhote Shaharon Mein’ and ‘Why do we watch Bigg Boss?’, amongst others. Chakraborti keeps the titles rather ‘Indian’ and places everything on a level playing field, giving even the slightest element in the book, a chance to succeed and be noticed. The fifty one essays are unequally divided

A sally into the very world I live in but after an overnight rest. It is like seeing normal things in the shaft of fresh morning light 54

into a total of seven sections. ‘Media India’ is a fairly interesting section and is like the dining table discussion in your house, chronicled and retold with added intelligence. Consistently playing the card of truth through his essays, Chakraborti writes something rather interesting in the essay titled ‘Discount vs Bargain’. “Discount appears as a cold one sided instrument. It is like an ex parte judgment. It was decided in your absence and it will continue to be there in your absence.” Noticeably, this book, unlike many of its counterparts, does not host a bounty of quotes mirroring what others feel about it. Even as you flip the cover, the synopsis is crisp and brief, and does not divulge more than required. It’s infrequent to see a book that keep it as simple as possible and is about the writing, more than anything else. There is also an excitement and enthusiasm in the title itself. When the function of two of the most vital senses is reversed and made to make sense, you know that you’re in for your share of creative chaos. Commissioned for students of management, brand managers and media and communication experts, the book befittingly encompasses all consumers of Indian life. If you’ve lived in India, you wouldn’t be caught by surprise but, will only smirk at the situation recapped and, suitably worded. What works for this book and for anything else that connects, is that the content is superbly relatable. And, all the faff is filtered because in all possibility, your experience, as an Indian, matches the one Chakraborti narrates. Chakraborti is currently Vice President, Consumer Insight and Human Futures Development at McCann Erickson India and stepped into the ad world almost two and a half decades back. He is currently also on the McCann World group Training team and runs programmes for the company across all its disciplines.  -aditi@pitchonnet.com

Pitch | November 2012

A big THANK YOU to all our Jury Members

JURY

JURY CHAIRPERSON

Arun Mehra CEO, Talenthouse India

Bedraj Tripathy

Senior General Manager, Marketing, Godrej Interio

Harneet Singh Rajpal

Jamal Shaikh

Vice President, Marketing, Domino's India

Editorial Director, Men's Health and Robb Report

Dheeraj Sinha

Chief Strategy Officer, South & South-East Asia, Grey Worldwide

Navroze Dhondy CEO, Creatigies Communications

Associate Sponsor

| November 2012 6 Pitch

Neeraj Sanan CMO, ABP News

Rana Basu Thakur

Sanjay Modi

Chief Mentor, Just Lateral ThinkInk (JLT)

Managing Director, Monster.com

Sanjeev Kapur

Shailendra Katyal

Shikhar Mohan

Chief Marketing Officer, India, Citibank

Marketing Director, Lenovo India

Head - Brand, HCL Infosystems

Knowledge Partner - Summit

Print Partner

Social Media Partner

Youth Partner

11 Pitch | September 2012

COLUMN ANNURAG BATRA

Let the races begin Will Formula One become a religion in India like it is in Silverstone where the first Formula One commenced in the 1950s? Annurag Batra Chairman & Editor-in-Chief, Pitch Magazine abatra@exchange4media.com @anuragbatrayo www.facebook.com/anuragbatrayo

he Formula One is in the process of becoming one of the biggest sporting properties of the country but unfortunately was exigent in India this year. But why are the brands forbearing themselves from participating as a unit? Is it that they have to learn a lot from the events across the globe in investing more to accentuate the action? Which brings us to the catechism, is it worth it for marketers and brands? Quoting Peter Drucker, “The aim of marketing is to know and understand the customer so well, the product or service fits him and sells itself.” Is this true for F1 in India? Even though the title sponsor among others have left no excuse for publicising the sport, but the brand still is not that

A Vodafone print ad for a contest & an F1 simulator installed by the telecom major at the Mumbai airport

strong as it is across the globe. Catering to a niche, the sport does not have a reach like IPL. One can pick up a bat and a ball and start playing in one’s backyard but just acquiring passes for the paddock lounge or the grand stand is a different ball game altogether. Another point of view is from a real estate perspective who are benefiting out of the Indian circuit? It is a general conception that, except a few brands having an international presence, the real estate developers have also leveraged the F1 factor as godsend. BIC has put Noida on the world map and the property players are pitching this fact to develop their townships pegging a Formula One track being in their neighbourhood. It is definitely an event that has put India in the eyes of the world sporting community, even though the country is recognised as a cricket crazy nation. Will F1 become a religion like it is in Silverstone where the first Formula One commenced in the 1950s? None the less this ‘rich man’s’ sport is yet to unleash its full efficacy and will remain an elite phenomenon amongst the Indian audience. With the high stakes and recherché spots, the participation and investment of local brands has to germinate to make this mega event a hit amongst the rest of the Indian population. The scrupulous kind of marketing and investment from the right kind of marketers and brands is what will make or break the Formula One in India. Rest assured, it will keep getting a quorum from hardcore fans, but is hardcore really the target audience in the country for marketers? 

Pitch | November 2012

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