The Marksman Jan '14 by The Marksman

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EDITOR’S NOTE Dear Readers, First of all, a very happy new year to each and every one of you and welcome to this New Year edition of The Marksman. In this edition, we bring to you “Gender Marketing”, a marketing technique that is not new to us. But what we seek to clarify with this article is how it can be used much more efficiently and the pitfalls associated with it.. With our Faux Pas, we try to decipher where the Tata Nano marketing went wrong. Our special story focusses on a very niche aspect of advertising- Instagram. This month’s Brand Markive explores what we all must have discussed amongst our peers, Micromax and how after roping Hugh Jackman, they are ready to explode on the international stage. Our regular articles like Bookworm, Buzz, Ad-itude, SquAreheaD, and Hallmark Campaign will definitely raise your interest. And what would be our sanskars like if we forgot about the internet phenomenon called Alok Nath! Our tweets section makes sure that he is here to stay. In our Rewind section, we take a look back at the Global Marketing conference held on the SIMSR campus by Prof A Parasuraman from the University of Miami on “Ubiquitous Marketing Unwiring Consumers….Rewriting rulebooks”. As always, we are indebted to everyone who send in their entries every month. Unfortunately, we can choose only a few. So, for this month, we went through each and every one of the articles and have selected the ones sent by Snigdha Kondat and Akhil Suresh. To all the other entries who didn’t feature this time around, we extend our warm thank you for your efforts and urge you all to keep writing to us. We’d also like to hear back from our esteemed readers on how you find this issue. Do mail us on www.interfacesimsr.com/the-marksman and stay connected with us. So, sit tight and happy reading for this year’s first issue of The Marksman. Team MARKSMAN The Interface-The Marketing Club of SIMSR @marksmansimsr.

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CONTENTS TWEETS

IT’S ALL ABOUT AD-ITUDE

BRAND MARKive

BOOKWORM

COVER STORY “GENDER MARKETING”

SPECIAL STORY “ADVENT OF INSTAGRAM ADS”

MARKETING FAUX PAS

“TATA NANO”

FEATURED ARTICLES

Hallmark Campaign – P&G

ReWIND

SquAreheaD

BUZZ

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TWEETS Charge your phone through air Researchers of Dukes University, USA have been granted a fat budget to explore the area of wireless cell phone charging through low-frequency magnetic fields. With the reducing battery life of emerging cell phones, this research if proved successful will certainly get the big mobile manufacturing brands clamouring to be the first to incorporate the technology into the cellular device.

Ford EcoSport v/s Renault Duster Renault launched its Indian SUV, the Duster amid a lot of hype and excitement among the people. Never before was an SUV available at such a cheap price. However, it has steadily been losing ground to its competitor the Ford EcoSport. This may be largely down to the fact that we Indians are a highly price sensitive lot and the EcoSport is available at a cheaper base rate than the Duster. While many debate on other factors like after sales service, look and finish, engine power and the all important mileage, it only remains to be seen which of these two mini-monsters go on to dominate the Indian roads.

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TWEETS Coke Secret Out As the picture rightly depicts, the secret of 125 years is now out in the open. The seemingly well guarded recipe was found in one of the local newspapers of Atlanta, USA. And that's not the best part. The recipe contains alcohol albeit in small traces. So for all you teetotallers, Brahmins and God fearing Muslims who consume the particular beverage, this may be a worrying discovery. It is time to find out the repercussions of the unconscious sin. Start reading up your respective holy books.

Big Boss 7 comes to a close The 7th Season of Indian TV reality show Big Boss came to a close on December 28th, 2013. Hosted by renowned Bollywood actor, Salman Khan, Gaurhar Khan was crowned this season's winner. Big Boss apart from being a medium of entertainment, was also used to promote a number of Bollywood films that were scheduled to be released in the duration it was on air. Film producers will have to look elsewhere to promote their upcoming releases, but given the sheer number of reality shows and TV channels that reach the average Indian consumer, that should not be too insurmountable a task.

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TWEETS Virgin America's new Sexed up Safety Video It was noticed that most travellers dozed off during the traditional inflight safety video. So, Virgin America decided to sex up their safety video and came up with a novel idea for it. They partnered with So You Think You Can Dance, a famous on-screen reality dance contest show in America to produce one of the most engaging and innovative safety video. All Star Twitch takes the lead role with cameos from some of the other famous contestants on the show. Watch and enjoy :http://www.youtube.com/watch?v=Dt yfiPIHsIg

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#AlokNath trending on Twitter Gone are the eras in which jokes on Rajnikanth and ACP Pradhyuman tickled the bellies of the Indian internet surfer. A new 'bakra' seems to have emerged in the form of Alok Nath. Alok Nath, a very conservative Indian TV soap actor is known for his 'Sanskar' both on and off camera and is now the butt of many jokes on social media sites especially Twitter. Most of the jokes revolve around long term relationships, marriage and commitment. Some of the tweets are : • Alok Nath is so sanskari, kiuskagharka pressure cooker bhiseetinahi Marta #aloknath • Alok Nath walks slowly. Because Babuji dheere chalna..... • Many wud.. Party all night Party all night We do party all night! Alok Nath wud..Aarti all night Aarti all night We do Aarti all night! • When you type #Aloknath on Google search, "I'm feeling Lucky" changes to "I'm feeling Sanskari" :D Just check #aloknath to get a glimpse of some of the witty tweets posted by people.

IT’S ALL ABOUT AD-ITUDE Video Ad The new face of Lays!!!

PepsiCo Foods gets associated with the actor Ranbir Kapoor to endorse its Lay's potato wafers in an attempt to reposition itself as a more youthful brand. The theme of this new ad is based on a group of best buddies, and is more youthful than the earlier positioning. It is still not sure if the eight years of association with actor Saif Ali Khan will continue or not as company hasn’t yet renewed its contract with him. The advertisement is spot on as it revolves around the nervousness and the fun that awaits every fresher in any college. The freshers soon go ahead and form great bonding with their buddies. Lay’s is shown as the perfect catalyst for this mischievously fun relation. Check out the ad on: www.youtube.com/watch?v=pDT64C24rx4

Print Ad The Politicians, The Economics Times Playing on their satirical best and choosing one of the most controversial topic in India, Politics, The Economic Times has come up with a new print ad that with minimum expression, says it all. With the competitive political scenario in India, this print ad indicates that the entire coverage will captured in just three pages. With a very strong Irony on how the “always increasing on ambition” political world is well confined in minimal space and yet makes its impact, is surely worth of a praise. The use of Car’s Red light allotted only to a statesman in a growing pattern defines the simplicity and uniqueness of this print ad.

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BRAND MARKive

Micromax: Its origin & The ‘Chinese’ Advantage

Micromax (2011-12 revenue: Rs 1,978 crores), ventured into the mobile phone market in 2008 and is one of the most fascinating success stories in the Indian consumer electronics industry. Micromax started as an IT software company in the year 2000 working on embedded platforms. This transformation was steered by four friends who divided responsibilities on functional lines, which haven’t changed since: Rajesh Agarwal, 47, Managing Director, Rahul Sharma, 37, Executive Director, Vikas Jain, 37, Business Director, and Sumeet Arora, 37, Chief Technology Officer. In barely five years, the company has come to occupy the third position (by volume) in the mobile handset market in India and is at No. 12 globally. It leads the Indian tablet market with a share of 18.4 per cent, ahead of veterans Samsung and Apple.

Today, Micromax has presence across India and global presence in Bangladesh, Nepal, Sri-Lanka, Maldives, UAE, Kingdom of Saudi Arabia, Kuwait, Qatar, Oman, Afghanistan and Brazil. The Gurgaon-headquartered company owes its success not just to the speed with which it puts new designs on the shelves but to how it has managed the crucial inputs (labor cost advantage and the production flexibility) by leveraging China. This might not seem a big deal, given that almost every other handset brand in the world manufactures its products in China. Right from the Apples to the Samsungs to many of our home-grown brands like Karbonn, a whole host of players reaped China's arbitrage advantage.

Micromax sells around 1.3 million mobiles handsets every month, with a presence in more than 500 districts through 100,000 retail outlets in India.’

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BRAND MARKive Exploring the Unexplored! Through its emphasis on adapting to the changing market dynamics, introducing feature-rich phones and smart phones that are innovative and unique, Micromax has today become a brand to reckon with. Some of the first devices launched by Micromax since inception are X1i Marathon Battery(First Long Battery Life Phone with 30 days battery back up & 17 days Talk time), Micromax GC700(first GSM + CDMA Mobile phone), G4 Gamolution phone with motion sensor gaming like Wi-fi, First women’s phone with a swivel form and Swarovski navigation keys, and the list goes on . .

The Big Daddys of Bollywood , Hollywood & Cricket as Brand Ambassadors…. You might choose to believe that a star can never influence a buyer. However, for Micromax, star endorsement is required because a lot of people still believe that Micromax is a modified version of Chinese handsets. Pricing was one of its key features and by signing Akshay Kumar, Micromax initially targeted the rural phone users who looked up to bollywood stars.

The 'Khiladi' is majorly responsible for the fanfare that Micromax enjoys in India. In 2012, by bringing MS Dhoni on board, Micromax mainly aimed at targeting the urban youth. And now, by signing on the ‘Wolverine’ Hugh Jackman the brand wants to make its presence in the international market. The fans of Hugh Jackman, or the people who watch his films, are from a strata where Micromax, at the moment, has negligible presence. Jackman, will promote all products released over the next one year under Canvas, Micromax's flagship subbrand. Will the strategy work to make the brand a household name? Only time will tell.

The Road ahead… The strategy which offered Micromax its biggest advantage in its first five years (taking crucial inputs from China) is under threat and it will require a re-examination by the company of their overall supply-chain strategies. Also, as a part of its expansion strategy the brand is rolling out operations in Russia and Romania, an Eastern European market. Micromax is also venturing into other products and has announced its foray into the home entertainment segment with the launch of new range of LED TVs, home theatres, 3D Blue Ray and Smart Stick and an Android dongle.

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BOOK WORM The Long Tail - Chris Anderson

Up until now, “ the focus has been on dozens of markets of millions, instead of millions of markets of dozens.

”

Excerpt

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The Long Tail is a book written by Chris Anderson and is on its way to becoming a classic. The book has abundant examples to clearly the concept of The Long tail. The concept is fairly new in the convoluted world of business wherein it was tacitly understood that an organization’s sales are because of the products that are top sellers but when seen closely and analytically, it was seen that an organization’s actual revenue comes from the small number of products that are not top sellers and bought by consumers in small volumes. Chris Anderson states the example of Amazon which has 100,000 top titles but around 25 to 30 percent of their sales come from titles which are not part of the top titles. According to Anderson, these millions of "fringe sales" are cost-effective, as online retailers do not have shelf-space to pay for. It also mentions that the brick n mortar stores are also a part of this concept as things which are part of The Long tail are mostly sold online and peak demand products are sold on the shelf which helps retailers save shelf space too. All together the book beautifully links culture and commerce by stating examples and bringing to the forefront that online stores, specially rake in a lot of their moollah from the long tail. It is a concept which is gaining importance as it gives businesses a new perspective by telling them to analyze sales and realize that fringe sales are actually revenue raking products.

COVER STORY GENDER MARKETING It is long said that men and women are wired differently and well, it is true. Neuroscience over the years has proved that women think very differently as compared to men. But how does this affect the marketing of a product? Is it even an issue? Before we proceed any further, let’s first find out what exactly is gender marketing. SutJhally, a well-known media scholar, defines gender marketing as ‘the images in advertising that depict stereotypical gender roles and displays made to appeal to a specific gender.’ Gender displays are used heavily in advertising in order to establish the role of one gender in relation with the other. Advertisers prefer advertising by using gender stereotypes because it is easy for the consumer to differentiate between the products as people basically identify themselves with their gender. It gives a readymade template for the advertisers to use. Everyone knows the stereotypes. All one has to do is to make an advertisement to appeal to them.

HOW DO WE USE IT? So, what are those templates? How do we find one-size-that-fits-all? The answer to these questions lies in the very first line of the article. Men and women are wired differently. There are some key structural differences, such as a larger hippocampus in women, as well as a heavier reliance on brain areas that contain mirror neurons, which enable a person to feel what they see another person is feeling. The practical implications are clear: women have better memory for detailed information than do men, while men tend to have better spatial ability and the ability to build systems. For marketers who want to appeal to women as effectively as possible, this means that they need to get product design, packaging, pricing, branding, messaging and more in sync with how the female subconscious mind receives and processes information, and directs behaviour, greatly increasing the chances of marketplace success. So, for an advertisement to be appealing to men, all the ‘manly’ traits such as Standing upright, eyes open and looking around, bravery, adventurousness, being strong need to be shown while for women, emphasis is laid more on the looks, sensuality, effectiveness and product details.

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COVER STORY

Traditionally, gender neutral products or every day usage products are advertised in a way which is more appealing to the ladies because it is the opinion of the lady of the house that influences the buying decisions. So, products like a dish washing bar, a washing powder, etc. are always advertised from the female point of view. This recent campaign by Dove is a great example for gender based marketing. The main consumers of the dove products are women, so it makes sense for Dove to target the women in their campaigns. Yes, men are a lucrative section nowadays for beauty products as well, but it is women and women alone that drive the sales of such a product. BUT WHY DO WE NEED IT NOW? Letâ&#x20AC;&#x2122;s answer this question point wise. More and more men are getting conscious about daily home expenditure. This means that they are having a say in the products being purchased. So the target base for advertisers has changed. And that is why we see the presence of men in such ads nowadays.

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Example for the case in point- the easy to use washing machine ads. A bumbling man washes his clothes while his wife meditates. Yes, ultimately he doesn't know how to do it properly, but it emphasises, in a very subtle way, that now itâ&#x20AC;&#x2122;s so simple that even this 30 second spot teaches you how to. Things have always been stereotyped. Men wear pants, women wear skirts. Men don't wear pink. Now with the onset of ambiguous sexuality and metro sexuality, it will be stupid on the part of marketers to ignore this. It is definitely a part of our present and doesn't look like it's going anywhere. Marketers would have found a new way to appeal to their consumers by making a product or a service exclusively made for a specific gender. Gender-based marketing offers new possibilities in terms of targetingsegmentation-positioning, as well as many new opportunities for product development and product extension for specific gender segments. In particular, this would mean more effective marketing of products or product lines for both women and men.

COVER STORY

While women have long since come to expect to be well understood by brands, men are just starting to make the same brand demands. Marketers serving this next generation, in the right brain era, will need to broaden their gender perspective to include the male consumer. They are becoming more informed about health, beauty and fashion categories, which is likely only the start. The more men see other men caring more about such things, the more acceptable it becomes for other men to follow suit. This cultural acceptability gives male consumers a whole new level of freedom, which leads to a significant opportunity for marketers. GREAT, WHAT'S THE PROBLEM THEN? “Parents petition Toys 'R' Us to do away with gender-specific marketing” “Girls, boys and toys: call to end 'stereotyping' - Sydney Morning Herald” “Why Most Marketers (Continue to) Get Gender So Wrong” A quick google search using the words “gender marketing” will tell you that not everything is right with the world of marketing by gender.

Media and advertisements hold huge sway over the opinions of the public and as a wise man once said, “With great power, comes great responsibility”. So these marketing techniques are should be handled with care. The recent ads by Pantene and GoldieBloxx have put the stereotyping battle in the middle. Sometimes in the race to reach out to the target markets and to get those numbers up and quick, marketers forget that marketing to a specific gender does not mean that you decide what men and women are supposed to do. Pink is now not just a girlie colour. Girls can play with action figures and dolls as well. “Marketing to women” is by no means dead, but the reason for, and results of, tending to it have changed. Understanding how women buy in the twenty first century should now be considered but the launching pad for better serving the less linear, more relational, and non-gendered human being. Welcome to the next generation consumer.

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SPECIAL STORY ADVENT OF INSTAGRAM ADS Until a few months ago we knew Instagram as an online photo sharing, video sharing and social networking service that enables its users to take pictures and videos, and share them on a variety of social networking sites , such as Facebook, Twitter, Tumblr and Flickr. Things changed, when in October last year, Instagram announced its plan to introduce ads on Instagram. Many Instagram lovers were dejected to learn that their beloved photo-sharing application would also be bungled with ads. Although the company assured its users that the ads wouldn't be annoying, interfering pop-ups but rather beautiful, high-quality photos and videos. Instagram ads are photos published by the brand's account that will now be shown to people who don't follow that brand. They are differentiated with the word "Sponsored" at the top of the image. Although users won’t be able to choose not to see ads on Instagram, which is free, they can hide ads by tapping the “…” below it they do not like and tell Instagram why they did not like them. “This will help us come out with more interesting ads in the future,” Instagram wrote in a blog post that actually announced the ads. Here is how an Instagram ad look likes. Relevant ads are shown to specific users based on what users do on Instagram and Facebook (their parent company).

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For example, this might include the people users follow and the photos and videos you like on Instagram, Facebook and other basic info on Facebook. Advertising on Instagram has very quickly moved from a new and surprising to a near-daily event, and they're bringing in a lot of "likes" and user comments. The very first Instagram ad made its debut in November 2013 and it was an ad for Michael Kors , a famous American fashion designer , the pic was a pretty close-up on a gold watch with a caption: "5:15 PM: Pampered in Paris #MKTimeless".

SPECIAL STORY

After the ad Michael Kors gained about 34,000 new followers on Instagram 18 hours after the first of four ads were published, according to Instagram analytics firm Nitrogram. (It posted bigger follower gains for the subsequent three ads and currently it has about 1.4 million followers.) The Ben & Jerry's picture of a man's hand holding a pint of "Scotchy Scotch Scotch," a limited time duration offering inspired by the character Ron Burgundy in a movie Anchorman currently has reached 250,000 likes along with upwards of 6500 comments.

Other early advertisers include Adidas, General Electric , Ben & Jerry’s, Burberry, , Levi’s, Lexus, Macy’s, Michael Kors, PayPal. But just like its parent company Facebook once faced, Instagram will now be charged with explaining what value those likes and follows actually generate. There are already surveys on behalf of advertisers to a group of users who have seen the ad, as well as a group of people that hasn't for gauging metrics like ad recall and brand visibility, according to an Instagram spokesman. Instagram won't disclose the reach of its ads a bit unlike we see in Facebook now, where for a post by a Facebook Page, the admin of that page can actually see the reach in terms of number of users who saw that particular post, but for Instagram the reach would considerably be based on the number of likes the ads rack up. Ads on Instagram are designed to support brands focused on reaching large audiences with memorable, high quality content. This aligns with the way people and brands already use Instagram – sharing photos and videos that capture moments, inspire others, make or shift perceptions.

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SPECIAL STORY To keep up with the app's aesthetic, high image quality is assured high and Instagram has put in place a review process where every ad is evaluated before it becomes eligible to be put in front of users. In order to lure other clients, Instagram also published case studies of the initial campaigns it did for the like of Levi’s, Ben & Jerry’s explaining how the campaigns were a massive success in creating brand awareness. Certainly the reach claimed for Instagram’s initial ads is quite impressive. Of the two brands for which Instagram shared initial data the company says: Levi’s reached 7.4 million over a nineday campaign that targeted users between ages 18 & 34, while Ben & Jerry’s reached 9.8 million over an eight-day campaign targeting users between 18 and 35 From these results, advertising with Instagram does seem to be very effective, but it would be too early to say that it is going to be a hot trend in the future as well because the concept is nascent .They say that a picture is worth a thousand words, Instagram and the brands look forward to capitalize on this very fact but they will have to make sure that they don’t spoil the users overall experience of their beloved application.

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MARKETING FAUX PAS Tata Nano

“A man buys a car for what he wants to be”. If I asked you, what’s the first thing that comes to your mind when you think of a Tata Nano, you are most likely to say, ‘the cheapest car’. And most definitely one doesn’t want to be ‘cheap’. This is the biggest error made by the Tata group in its positioning due to which they couldn’t achieve their sales projections. Tata Nano was a revolutionary concept and an engineering marvel. It was being widely discussed amongst people, even on national TV much before its launch. This magnificent creation’s future scope in the Auto industry was eagerly looked forward to as people believed it would bring in a great transformation. Tata Nano vis-a-vis Volkswagen Beetle was unable to live up to the intended image of ‘an adorable family car’ due to the loopholes in its marketing strategy. Beetle on the other hand like Tata Nano priced at the rate of a small motorcycle was successful in positioning itself as intended.

The nexus of the price and positioning of Nano was a precursor to a fizzled market presence. Their target market, Indian middle class look for cheap cars but not cars that seem cheap and they are willing to pay slightly more for a car that has an upmarket image. This is the biggest reason why they couldn’t lucidly put forth the concept of ‘people’s car’. Several consumer research surveys conclude that for Indians, cars are luxury items, hence, they would not like to compromise on them. Cars are also considered to be a testament of one’s status symbol and Nano doesn’t stand to be a status symbol if its USP is being the cheapest car. Nano was considered as an upgrade on a two wheeler for a family of four. On the contrary, such households aspired to move to something better and not cheaper.

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MARKETING FAUX PAS Also known as, the One Lakh car, it didn’t quite cost that much for a very long time. Due to an increase in the input costs, the cost of the car also increased. The company did attempt to give an explanation for the same. However, it didn’t work out well with the consumers. As a result, it continued to be referred to as a One Lakh car. Contributing to the flaw of price fixation of Tata Nano, was the spread of drawbacks of such a cheap car. The Tata group was unable to control the widespread talks about the car such as it lacked safety. Just then fuel was added to the fire quite literally as few cars actually caught fire. The company didn’t make much effort to gain back the confidence of the consumers. After the disappointing sales, Tata Nano is now trying to transform the ‘people’s car’ into ‘cool people’s car’ by adding a sound system with four speakers, dual glove boxes and improved interiors and a refurbished exterior. Also the powerful AC and the colors along with the classic adage of better fuel efficiency are being positioned as the differentiators that have helped its sales. They also raised the price of the cars and kick started a new marketing campaign to cover up for all the mess. The campaign has hit television spots and they show young people dancing, ‘celebrating awesomeness’ as the tagline states. Now, the Tata group is also considering to launch Nano in a whole avatar in other South Asian countries like Indonesia, where no stigma of being the cheapest car exists. The whole idea is to bring it back in India with an entirely new image altogether.

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Tata Nano tried to capture bottom of the pyramid because of its promise of a massive potential consuming mass having low expectations and little competition. But this concept went awry due to its failure in consumer behavior assessment. Let’s look ahead as to how Tata Nano plans to surprise us with a new and effective marketing strategy this time.

FEATURED ARTICLES KEJRIWAL USING NEW MARKETING TOOLS: ITS IMPACT ON THE AUDIENCE

Akhil Suresh - NMIMS, Mumbai Mounts & heaps of articles have been written on Arvind Kejriwal and his phenomenal rise to power riding on an infant political party capturing India’s capital with brilliant and well executed set of tasks and tools. It would certainly not be an exaggeration to suggest that Delhi’s new Chief Minister has come to power by sensing the rising social media platform and effectively utilizing it to spread ideologies and core strengths to the masses. Gone are the days when political parties can afford to ignore or belittle the power of the social media as well as well-planned PR stunts to capture the imagination of the increasingly knowledgeable and well-informed voters. The IIT tag and a stint in the Revenue department would certainly suggest that Mr Kejriwal was academically gifted as well as reasonably exposed to the working of a Government organisation.

In hindsight this would certainly would a stepping stone towards embracing a life of a social activist and a political leader. There have been numerous fringe parties across the nation consisting of renowned personalities & social activists contesting in elections as well as putting forward demands for a ‘cleaner more efficient Government’, but Mr Kejriwal’s Aam Aadmi Party certainly was the first to gain prominence in national media as well as win enough seats in an election to be able to leverage formation of a Government in Delhi, with the support of the decades old established Congress party who had ruled Delhi for the previous three consecutive terms. Apart from the limelight he had received from associating himself with Anna Hazare in the Lokpal Movement, Kejriwal had also initiated various

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FEATURED ARTICLES ways to involve the common in all activities as well as policy making decisions once he had decided to start a political party Some people might say that the steps which were thereby taken might seem excessive or unnecessary, but to a keen eye it is all a well thought out marketing strategy akin to a company raising the brand value of its products in the eyes of the customers thereby achieving desired targets.

Marketing tool wizards – Kejriwal & Modi Years from now, Narendra Modi & Arvind Kejriwal would be known as the pioneers in amalgamating social media and political rallying to great effect. It wouldn’t be surprising to find Harvard case studies in their names and the various marketing

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tools they had used. The one aspect they had backed upon was the increased level of involvement with the public as well as an image of easy accessibility which would be bought about by being active on the web. Mr Modi’s website can be said to be one of the most interactive political websites in the world with blogs, regional networks, online discussions, debates as well as a provision to make

appointments with the Chief Minister himself. Mr Kejriwal had also taken a leaf from the Modi book of digital interaction and took it a step further by organising rallies, taking extensive feedbacks in cases of minor as well as major party decisions as well as replying to almost all the feedbacks and suggestions received, which is no easy feat. Asking for the public opinion about

FEATURED ARTICLES

Tesco-Tata-Trent,The Road ahead!

Snigdha Kondat -NMIMS, Mumbai

over global rival Wal-Mart which split with its local partner Bharti Enterprises. An investment from a big brand like Tesco would set an example and encourage other global companies to invest in the Indian market. “Our understanding of the Indian market coupled with Tesco’s unparalleled global retail expertise will allow us to leverage the tremendous potential of the market to the benefit of all stakeholders” - Noel Tata, Trent’s Vice-Chairman

“Small Opportunities are often the beginning of great enterprises”. Tata Group’s retail business Trent Hypermarket Limited runs in a discount format under the brand name Star Bazaar. Tesco, the world’s third largest grocery & general merchandise retailer, has proposed for a joint venture with existing partner Trent, and applied for a 50 % stake in the company’s unit. Tesco would invest $110 million in the India market for front-end multi-brand retail stores and extend its back-end and wholesale support franchise agreement with Trent. On 30th Dec, 2013 Tesco has become the first global retailer to get approval from the Foreign Investment Promotion Board after the government allowed 51% FDI in multibrand retail. It has the first mover advantage

Business Model Currently Trent operates 16 outlets across Maharashtra, Karnataka, Gujarat, and Tamil Nadu. The Joint Venture will operate in India through a chain of stores under various banners, including Star Bazaar, Star Daily and Star Market with a tag line ‘A Tata and Tesco Enterprise’. Till now, Tesco had sold only a few FMCG products in Trent's hypermarket chain.

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FEATURED ARTICLES The new hypermarket model would offer 12 categories of products consisting of cereals, snacks, textiles, footwear, crockery, furniture and electronic equipment etc with substantial discount offers. The joint venture with Tesco would enable Trent to provide world class shopping experience to customers, as they will have an access to Tescoâ&#x20AC;&#x2122;s retail expertise and technical know-how. The FDI policy would require Tesco to invest in the backend infrastructure like packaging, storage and warehouses, logistics etc.

Challenges The opposition faced by FDI from small stores and their suppliers is to deter the rapid expansion of big, modern retailers. They complain that they cannot compete with prices of big retailers. The Indian supply chain and transportation of huge stock to different stores through Indian roads is a challenge which would lead to wastage.

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Road ahead Most of the products sold at Star Bazaar come from big suppliers. In the future fresh food and staples will be sourced from local suppliers (mandatory 30 per cent sourcing from micro, small and medium enterprises according to FDI policy) and Tescoâ&#x20AC;&#x2122;s international sourcing team will be tapped for products whenever required. Supply-chain poses a major challenge to Trent. The plan is to develop a business model suiting the local market using market research and then scale up the number of stores. Currently they have a modest plan to open 5-10 stores a year and 50 stores in 5 years in the long run. It plans to expand into Andhra Pradesh, Assam, Haryana, Uttarakhand, Manipur, Daman & Diu and Dadar & Nager Havelli. At present, foreign direct investment in retail stores is allowed in only 11 states and union territories in India.

Fig: States in favor or against FDI in multi Brand retail. Source: Deloitte

FEATURED ARTICLES Tesco has to handle political uncertainties, as FDI is not allowed in Gujarat and Tamil Nadu where Trent stores are located. Concerns of a reversal in FDI decision by a change in government at the center in 2014 could put investments in a huge risk. Despite the political opposition and ambiguous investment rules, the $500 billion Indian retail sector is a promising opportunity. According to a report from A T Kearney the Global retail development Index of India is ranked fifth after Brazil, China, Chile and Uruguay. Investment commission of India has forecasted a growth of retail sector to $660 billion by 2015. Only 8% is organized retail and the remaining 92% is unorganized retail. The organized retail is estimated to grow at a rate of 25% over the next five years. Higher disposable incomes, technology and lifestyle trends,

Retail Industry % Share 8%

Organized Unorganized

92%

rising consumerism are some of the key drivers for growth in organized retail. The current major competitors in the organized retail segment are Future group, Reliance retail and Aditya Birla Retail. â&#x20AC;&#x153;India, one of the fastest growing economies in the world, presents its own challenges but is an exciting opportunity. The incomes and expectations of consumers have changed dramatically in the last five years and will continue to do so.â&#x20AC;?

- Trevor Masters, Tesco's Asia Head The Benefits of the joint venture will be seen over a period of time. The initial phase would be to assess the demand, prepare a strategy for local market and set up operational capabilities. In the long run there would be significant improvement in the infrastructure, supply chain and product standards. Transparency in the supply chain will be established as direct procurement from farmers will eliminate the middlemen who restrict competition.

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Hallmark Campaign P&G - #ThankyouMom The story of Sachin Tendulkar actually began when his elder brother Ajit spotted the talent in the young star and assisted him to the coaching centres. Same is the case with other athletes or any other famous person. The talent, the spark, whatever we call it is mostly discovered by the family. Consumer goods giant P&G took this idea forward with its new instalment of the "Thank You, Mom" campaign. Winter Olympics will be held in Sochi this year. P&G has created a short film which portrays the stories of 4 athletes mom’s from around the world, showing their journeys, their hardships, their dreams and the roles they play along the way. Conceptualised by advertising agency Wieden + Kennedy, the commercial is released as a sequel for February's Sochi Winter Olympics. Published on January 5, the video has received more than one million views before this article was written.

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As part of the campaign, P&G is sending $1,000 Visa gift cards to each of the 357 Olympic athletes' moms, intended to help them travel to Sochi. P&G did a similar campaign in the London winter Olympics 2012. It constituted a short film called ‘Best Job’ which debuted before London Olympics 2012 and garnered 21 million views. Building on the momentum from that campaign they have created this campaign and titled ‘Pick them Back up’. The film also features music created by the same world-renowned composer from "Best Job," Ludovico Einaudi. Known for his emotive and effortlessly lyrical music, Einaudi's new composition evokes the love, passion and commitment that moms have for their children. In 2012, Olympic Games athletes and hopefuls were shown sharing their stories and how their moms and close ones had shaped their dreams. That ad won the Emmy for Best Primetime Commercial, as well as two Gold Lions and three Silver Lions at Cannes.

ReWIND 9th SIMSR Global Marketing Conference

The 9th SIMSR Global Marketing Conference was conducted by SIMSR in association with College Of Business & Public Administration, California State University, San Bernardino, USA & The Management University of Africa. The event was sponsored by DRAFTFCB +ULKA, Godavari Biorefineries and Euromonitor International.

As a precursor to the event, the college hosted a CEO Dinner for city’s top industrialists and marketers at ITC Grand Central where the 9th SGMC was inaugurated with much gusto in the presence of the much eminent service marketing personality, Prof A Parasuraman. He is the James W. McLamore Chair in Marketing, Professor, and Department Chair, Marketing at University of Miami.

This marketing conclave played host to industry czars and academicians and research scholars who shared their papers on diverse subjects ranging from brand management to rural marketing. The theme this year was

“Ubiquitous Marketing Unwiring Consumers….Rewriting rulebooks”

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ReWIND

Mr. Sumanta Datta

Mr. Satyam Prakash

Prof. Goetz Greve

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Our chief guest of honor, Prof. Parasuraman elucidated the concept of this year’s theme very effectively to the audience, emphasizing on the reasons why service providers should in particular catch up to this trend. Day 1 saw a workshop being conducted by Prof Parsu for executives and our SIMSR professors. Here, he shared his contribution to the world of service marketing. The inaugural function also saw Mr. Sumanta Datta (VP, Company Bottling Operations-Coca Cola India) sharing his immense knowledge & insights of his rich domain knowledge. After a series of informative and detailed presentations, the 9th Global conference came to an end with an intriguing panel discussion on “Doing business in Africa”. The panel saw revered industrialists and businessmen viz. Mr. Satyam Prakash, Dr. Manendra Sahu and Mr. Anil Balani. They discussed on the brighter prospects of setting up business in Africa and the immense unseen benefits of doing the same. The panel discussion marked the end of this 3 days saga with many recalling the event as a success.

Marketing Department - SIMSR

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SquAreheaD

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BUZZ Clues: -

4 1 2 6

3 5

DOWN: 1. Which logo is made by Ronald Wayen , the 3rd co founder of that company? 4. Award winning 2012 ad of this company was followed by the famous â&#x20AC;&#x2DC;scarecrowâ&#x20AC;&#x2122; 6. Worlds 2nd largest retail store in terms revenue and 3rd largest in terms of profit(after Wal mart and tesco)

ACROSS: 2. In 2005 , Ebay acquired which company and 6 years later sold it again. 3. This American coffee company celebrated its 50th anniversary 5. 7am to 11pm, 7 days a week

Answers: 1.Apple 2. Skype 3. The coffee bean 4. Chipotle 5. 7Eleven 2.6. Carrefour.

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Call for ARTICLES CALL FOR ARTICLES February 2014 Articles can be sent on any one of the following topics*:

1. Brands like CCD exploring chat apps for connecting with customers. 2. How personalities create a stir in the digital space. (read- Alok Nath) 3. Star India's serious entry into Indian sportspartnering Indian hockey and cricket.

*Please ensure that there is no plagiarism and all references are clearly mentioned. 1. One article can have only one author. 2. Your article should be approximately 800-850 words and MUST be replete with relevant pictures that can be used to enhance the article. 3. Font Type: Gill Sans MT 4. Font Size: 14. 5. Send your article in .doc/.docx format to marksman.simsr@somaiya.edu 6. Subtitle line: Your name_Institute Name_Course Year 7. Kindly name your file as : Your name_Topic The best adjudged article will be given a Winnerâ&#x20AC;&#x2122;s Certificate. Deadline for the submission of article will be : 20th February, 2014

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29 THE MARKSMAN

The TEAM THE TEAM TWEETS by Dylan Menezes Itâ&#x20AC;&#x2122;s all about AD-itude by Aman Dua Brand MARK ive by Shweta Pannikar COVER STORY by Asheeb Singh Raina SPECIAL STORY by Kapil Maggo HALLMARK CAMPAIGN by Alakh Krishnani BOOKWORM by Megha Gupta SquAreheaD by Prashanti Kasinathan BUZZ by Meera Thacker FAUX PAS by Niharika Srivastava ReWind by Ritika Bramhe PROOF READ by Asheeb Singh Raina Dylan Menezes DESIGNING by Parth Shah Niharika Srivastava Aman Dua PROMOTIONS by Kapil Maggo Ishaan Srivastava

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To subscribe to "The Marksman", Follow the link:http://interfacesimsr.weebly.com/ the-marksman.html OR drop in a mail/contact us at : interface.newsletter@gmail.com Subject line: Subscribe:Your Name_Institute Name_Course Year Follow us at: http://www.facebook.com/simsr.in terface http://interfacesimsr.weebly.com/ the-marksman.htm Website: http://interfacesimsr.weebly.com/t he-marksman.html The MARKSMAN is the newsletter of INTERFACE, the Marketing Club at K.J. Somaiya Institute of Management Studies and Research, Mumbai. Images used in THE MARKSMAN are subject to copyright. THE MARKSMAN does not take any responsibility of any kind of plagiarism in the articles received from students of other colleges.

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