The Marksman Jul '12 by The Marksman

The

MARKSMAN

K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

VOL. 2| ISSUE XI| JULY’12

EDITOR’S DESK Dear Readers, Welcome to another edition of your favorite marketing magazine! MARKSMAN starts afresh this year enthused with your constant support and encouragement. It’s that time of the year when campuses are burgeoning with enthusiasm, new faces and a lot of questions. At MARKSMAN we strive to open up a world opportunity and ideas to young minds. We help you stay ahead of times and think beyond the obvious. MARKSMAN shall be a resourceful companion in your quest for knowledge! With your cover story, Grassroots Marketing, explore the benefits of reaching your target audiences directly and in a more cost effective way! Special story on Cause Related Marketing and highlights the mutual benefit that modern businesses and non profit organizations derive from this novel means of marketing. Our Mark-ive, Its all about Adi-tude, Tweets, SquareHead and Buzz will appeal to all. We would also like to congratulate the winners of our Featured Articles- Smriti Sudish , Divya Bhatia and Wayne Soares. Signing off, with some food for thought for all budding marketers “Clarity triumphs perseverance ” Hope you enjoy this issue as much as we did making this for you. Cheers !! Team – Marksman The Interface – The Marketing Club of SIMSR

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CONTENTS TWEETS COVER STORY GRASSROOTS MARKETING 07

03 It’s all about AD-itude! 04 brand MARK-ive 05

SPECIAL STORY CAUSE RELATED MARKETING

GLOBAL SIMSR MARKETING

16 SquAreheaD

FEATURED ARTICLES TREND OF ONLINE MARKETING IN INDIA “SATYAME VAJAYATE” MILKING TV RATINGS: FAIR? PRODUCT PLACEMENTS IN FILMS

…12 …13 …15

19 BUZZ 20

THE MARKSMAN FEBRUARY 2012

TWEETS GOOGLE LAUNCHES JELLY BEANS ANDROID Android 4.1 Jelly Bean, released on July 11th 2012, is the fastest and smoothest version of Android yet. It is an incremental update with the primary aim of improving the user interface, both in terms of functionality and performance, it improves on the simplicity and beauty of Android 4.0, and introduces a new Google search experience on Android. It is also capable of adapting itself to present information in different ways depending on the size of the gadget it is running on. IKEA LIKELY TO ENTER THE INDIAN MARKET The global furniture giant IKEA offered a welcome respite for the Indian markets by an investment of Rs 10,500 crore for setting up single-brand retail venture. The company has sought government permission to set up a wholly owned Indian subsidiary and will open 25 stores with an investment of Rs 4,200 crore in the first phase. The entry of the 24.7billion euro Swedish giant will bring in many other positive direct and indirect benefits for India. RENAULT INDIA LAUNCHES "THE DUSTER” Renault India has launched their first genuine volume product, the Duster SUV in India at a price starting from Rs 7.19 L. Renault's entry into the Indian Automobile market with Mahindra Logan could not create an impact as the product failed. If Duster clicks, then there is possibility of Renault improving its brand image. VOLKSWAGEN ON A YOUTUBE TEST DRIVE Volkswagen has created 'The YouTube Test Drive', a campaign which invites users to post any query they have on the Jetta TSI directly on YouTube and receive a video response to their questions. The campaign is currently live on www.jettatsi.com. Some of the features of the car have been captured through videos laced with humor and wit. Within a few hours of the launch of the campaign, the YouTube videos had already gathered more than 6,000 video views. DENTSU INC. The 111-year-old Japanese advertising company, agreed to buy Britain’s aegis group plc in a £3.16 billion (Rs.27,270 crore) deal to create a global media and marketing network. The purchase is the second-biggest overseas takeover by a Japanese company this year.

ART OF LIVING NOW ENLIGHTENS THROUGH TABLET PCS Shri Shri Ravi Shankar's Art of Living has partnered with Bangalore based EAFT Technologies to launch Android tablets called "Enlighten" which is preloaded with content for the devotees of Shri Shri Ravi Shankar.

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It’s all about AD-itude! MEDIA: OOH MEDIA ADVERTISER: JHALAK DIKHHLA JAA ADVERT TITLE(S): DISCO BALL OOH AGENCY: MILESTONE BRANDCOM, INDIA Bringing out the stage away from the Tv to the roads!! Jhalak Dhiklaja made the roads feel like the real dancing stage for stars. A gigantic disco ball was placed at a key arterial route in Mumbai – Mahim causeway. The disco ball, sparkling through the night was set up on a rotating disc. It was visible from a distance of over 500 metres. The TV show has rolled out an extensive outdoor media campaign in over 22 cities. The attempt is to reach all Hindi Speaking Markets (HSM), with a focused push on metros and 30 priority towns within HSM. Milestone Brandcom has executed the campaign across these markets using a wide array of 1500 high-impact outdoor media touch-points. The idea of using the ‘Disco Ball’ was to bring out the essence and star power of the show. It stood out distinctly and created excitement. It helped in creating buzz and hence achieve the desired impact. Through high visibility and innovation, the action was brought from the sets to the streets, creating experience for Brand- Jhalak Dhikhlaja.

MEDIA: TV ADVERTISER: BENNETT COLEMAN & CO. LTD BRAND: BOMBAY TIMES ADVERTISE TITLE: BORN GLAMOROUS CREATIVE AGENCY: TAPROOT INDIA Taproot India created a film to celebrate Bombay Times’ 18th year. It tries to bring out glamour which is the essence of the supplement and it tries to show how Bombay Times has affected the lifestyle of its readers. The TVC shows several young Mumbaikars - a girl, a government official, a gas cylinder delivery boy, a milkman, a fisherwoman and a rickshaw driver - all in the best of the fashion. Their dressing stands out from their surrounding environment given the nature of work they are into. All through the TVC, a soundtrack keeps playing in the background whose words go - 'Style maara toh darna kya, thoda hero bana toh darna kya. Glamour hi hai koi chori nhi, zara filmy bana toh darna kya'. (What's the harm in being stylish or glamorous!) The TVC ends with text that says those who read Bombay Times are 'Born Glamorous'. TVC is amazingly crafted and it sends across the message effectively. Bombay Times is serving glamour since 18 yearstaking the credit for City’s style and fashion quotient.

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Brand-MARK-ive THE WALMART STORY Birth of Discount Retailing Most people think discount retailing began in 1962 – the year that Kmart, Target, and Walmart first opened. However, in reality, the chain of variety stores Sam Walton owned during the 1950s faced stiff competition from many regional discount stores. 1962 – WALMART BEGINS Before opening Walmart, Sam travelled the country studying everything he could about discount retailing. He became convinced American consumers wanted a new type of store. Trusting his vision, Sam and his wife Helen put up 95 percent of the money for the first Walmart store in Rogers, Ark. 1972 – WALMART GOES PUBLIC Discounters such as Kmart quickly expanded in the 1960s, while Sam only had enough money to build 15 Walmart stores. In 1972, Walmart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, our company grew to 276 stores in 11 states by the end of the decade. THE 1980S – WALMART COMES OF AGE In 1983, the first Sam’s Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Walmart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. THE 21ST CENTURY – ONE OF THE MOST SUCCESSFUL RETAILERS IN THE WORLD Today, 10,185 stores and club locations in 27 countries employ 2.2 million associates, serving more than 176 million customers a year. Its basic value has always been, and always will be, customer service.

WALMART DISCOUNT STORES The first Walmart Store that opened in 1962 was a discount store. Today there are 624 stores offering a pleasant and convenient shopping experience across US. The size of an average store is 108,000 square feet. Each store employs 225 associates. These stores feature wide, clean, brightly-lit aisles and shelves stocked with a variety of quality, valuepriced general merchandise, including- Family apparel, Health and Beauty aids, Electronics, Toys, Lawn and garden items, Jewellery, Automotive products, Home furnishings, Hardware, Sporting goods, Pet supplies, Housewares etc.

WALMART SUPERCENTERS Supercenters were developed in 1988 to meet the growing demand for convenient, one- stop family shopping, main essence being- Every Day Low Prices. It is a combination of full grocery and general merchandise. There are 3,029 Supercenters, and most are open 24 hours. Supercenters average 185,000 square feet and employ about 350 or more associates. Supercenter groceries features- Bakery goods, Meat and dairy products, Fresh produce, Dry goods and staples, Beverages, Deli foods, Frozen foods, Canned and packaged goods, Condiments and

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Brand-MARK-ive spices, Household supplies, etc. Most Supercenters also have many specialty shops such as: Vision centre, Tire & Lube Express, Brandname restaurants, Portrait studio and one-hour photo center, Pharmacy, Health Clinic, Employment Agency, Hair salon, Bank, etc. WALMART NEIGHBORHOOD MARKETS Walmart Neighborhood Markets offer a quick and convenient shopping experience for customers who need groceries, pharmaceuticals, and general merchandise all at our famous Every Day Low Prices. First opened in 1998, there are now 199 Walmart Neighborhood Markets, each employing about 95 associates. A typical store is about 42,000 square feet. Walmart Neighborhood Markets feature a wide variety of products, including: Fresh produce, Meat and Dairy products, Frozen foods, Dry goods and staples, Health and beauty aids, Stationery and paper goods, Drive-through pharmacy, Deli foods, Bakery items, Canned and packaged goods, Condiments and spices, Pet supplies, Household supplies, One-hour photo centre. WALMART EXPRESS STORES The first two Walmart Express test stores opened in June 2011 in Northwest Arkansas. Walmart Express has been created to offer low

more. Many have pharmacies as well. Walmart.com Founded in 2000, Walmart.com brings the convenience, great merchandise selection, friendly service and Every Day Low Prices of your neighbourhood Walmart to the Internet. Walmart.com features more than 1,000,000 products, plus easy-to-use music downloads and digital one-hour photo services. During the holidays, Walmart.com features many special offers available only online. It’s also a convenient place to find out about our exciting in-store holiday specials. With Site to Store program, one can purchase items at Walmart.com and then have them shipped free to its local store for pickup. SAM WALTON’S SECRET- GIVE YOUR CUSTOMERS WHAT THEY WANT In his autobiography, Sam said, “… if you think about it from the point of view of the customer, you want everything: a wide assortment of quality merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable service; convenient hours; and a pleasant shopping experience. You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you’re invisible”

prices every day in a smaller format store that provides convenient access for fill-in and stock-up shopping trips. The stores give Walmart flexibility in serving customers, especially in rural and urban areas where shoppers may not have access to larger stores. The Walmart Express test stores average 15,000-squarefeet and offer groceries and general merchandise, including an assortment of fresh produce, dairy and meat, dry goods, consumables, health and beauty aids, overthe-counter medicines and

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C O V E R S T O R Y

GRASSROOTS MARKETING

In today’s world which is all about startups and people armed with just an idea of a product or a service and little or no funding even to prototype the product, one can’t even dream of giving competition to big wigs like Pepsi Co. and HULs of the world in terms of marketing or advertising ones products. So what hope does one have of surviving in the world of multi-million dollar advertising budgets? Of not getting lost in the jungle? The answer of course is Grassroots marketing.

WHAT IS GRASSROOTS MARKETING? As the names suggests this type of marketing works at the basic level and doesn’t care about the bells and whistles usually associated with costly advertising campaigns and other marketing methods. Grassroots marketing is the opposite of mass marketing, which broadcasts a product message to the vast general population in hopes that it will resonate with a small portion of that group. In grassroots marketing, the idea is to directly connect with a product or service's most logical potential customers at their places of work, commerce and leisure. It could also be done at the store itself by means of free product trials and works best if you have an

idea or a product that has good functionality and only visibility is your problem. GRASSROOTS MARKETING VS VIRAL MARKETING Viral marketing can be taken as an analogy and also works on a similar concept. The difference though is that whereas viral marketing dies down as fast as it goes up, meaning the efforts put in are not sustained and limit to creating just an initial buzz, grassroots marketing deals with a sustained effort over a long period and requires a much longer commitment. Whereas viral marketing might be used as just one of the

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COVER STORY current revenue is 90 million Canadian dollars. This goes on to show the simplicity and effectiveness of a grassroots marketing campaign.

ways to promote a product or a service, grassroots marketing can be used in place of an entire campaign. Viral marketing is a term that is being used very loosely these days and the social media craze only adds to this. Grassroots marketing is often more widely used without people actually knowing about it. DOES IT WORK? Grassroots marketing is usually used by startups and cash strapped organizations so although they might be locally very well received and successful, majority of the people rarely get to know about it. But some unique examples are there of companies which hit it big using grassroots marketing. One of the most successful and popular grassroots marketing campaign was

run by a company called “1-800-GOT-JUNK?” The owner put up signboards on electricity poles reading just the name of the company which incidentally was also the number which needed to be called to get rid of any unwanted junk. It had cost him around $1.5 for each board. Its

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R E L E VA N C E I N TO D AY ’ S W O R L D The argument could be that with such easy access to social media and with its humongous footprint, is it not easier and more effective to use social media marketing which would also reach more people than let’s say a flyer or a small sign post. Well it would definitely reach more people but how many of them will remember it after five minutes? The problem a marketer faces these days is of very short attention spans and generating brand recall when it matters the most, which is time of purchase. So grassroots marketing works despite reaching a narrower customer base as more people from that proportion convert into purchasers which is the ultimate target of every campaign SOME SUCCESSFUL EXAMPLES Häagen-Dazs, the high end ice crème brand used grassroots marketing to promote its 5 new, all natural flavors in 2009. It used “SheSpeaks”, a word of mouth sampling party to promote and create a buzz around the new flavors before the launch. It not only gave them much needed publicity for the new flavors, but also valuable feedback from actual customers. Also, recommendation from your peers or friends is more credible than a polished ad campaign and hence the concept worked very well.

COVER STORY Another good and very recent example is of “Turn this ship around” campaign. With the US presidential campaigning in full swing, Republicans have come out with an advertisement showing Democrat Barack Obama as an arrogant, steadfast captain of a ship heading in the wrong direction. It is now gaining mass popularity as more and more Republicans have started using this advertisement in their campaign for the elections.

Another controversial yet popular ad campaign was by Acclaim Entertainment, a computer game company. It offered relatives of recently deceased people to let them put a small poster of a character of their upcoming game, “Shadow Man: 2econd Coming” on the tombstone of the deceased. It generated a lot of controversy and as the saying goes; no publicity is bad publicity, Acclaim Entertainment got a lot of attention for the campaign.

To sum up, in the current times with cut throat competition and differentiation being the only key, grassroots marketing is your key to steer clear of the clutter and be out of the ordinary and in the customers face. It forces the viewer to take notice because now he can even fast forward through the TV commercial with a click of a button and with it goes all the money spent in making and airing the commercial. As the saying goes, “Grass is always greener on the other side of the fence”, we hope marketing experts realize this and adopt grassroots marketing and we get to see more innovative methods of marketing.

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CAUSE RELATED MARKETING S P E C I A L

Cause Marketing or Cause-related Marketing refers to a type of marketing involving the cooperative efforts of a â&#x20AC;&#x153;for profitâ&#x20AC;? business and a non-profit organization for mutual benefit. This term can be generalized to refer to any type of marketing effort for social and other charitable causes. With increased internet penetration, cause marketing has been conducted increasingly through online channels in the last decade and it has no longer been restricted to offline strategies.

S T O R Y

Cause marketing can take on any forms including a. Product, Service, or transaction specific, b. Promotion of a common message, c. Product licensing, endorsements and certifications, d. Local partnerships and so on. Cause related marketing is a powerful marketing tool that business and non-profit organizations are increasingly leveraging. Cause related marketing should not be confused with corporate philanthropy and corporate sponsorships. Corporate philanthropy takes place through direct monetary gifts to a non-profit. Corporate sponsorship is a bit closer to cause marketing since the corporation gives the non-profit money to hold an event, run an art exhibition or other time limited activity. Cause marketing can have various benefits, both for the society and the organizations involved in it. It can improve social welfare, drive sales, increase market value of a firm, enhance the public image of the company to name a few. Cause marketing can affect a brand of the company in a drastic way. It can create a sense of brand community and elicit brand engagement. Many companies have shown breast cancer as a cause. For eg. American Express contributes a percentage of their income to Breast Cancer foundation in USA.

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SPECIAL STORY ITC has Enduring as its core value. For every classmate notebook you buy, ITC contributes Rs.1 to its rural development initiative that supports primary education in villages.

Tata Group runs Endowment Schemes to provide higher education for deserving Indians, presented the first corporate sustainability report, social servicesâ&#x20AC;&#x201D;the thrust area rural development, community health, basic education and vocational training. It also spends on basic infrastructure and disburses money through various charitable trusts and relief and reconstruction societies.

A V Birla Groupâ&#x20AC;&#x2122;s initiatives are channeled through The Aditya Birla Center for Community Initiatives and Rural Development spearheaded by Rajashree Birla (wife of Aditya Birla). All the Group companies are dedicated to social development. Hindalco an AVB group company is an epitome of cause related marketing.

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FEATURED ARTICLE ETHICAL SHOWS LIKE SATYAMEV JAYATE MILKING RATINGS OUT OF PEOPLE’S MISERY: FAIR? - Smriti Sudish, SIMSR AGENT OF CHANGE OR MARKETING? Come April we were asked to keep our indolent Sundays free since Mr. Aamir Khan requested for a heart to heart conversation with TV audiences as “ dil pe lagegi tabhi baat banegi”. He captured public imagination with his new show by displaying a new Indian dysfunctionality every Sunday which a modern, educated, India may think is non-existent. He looks like an agent of change, a torch bearer at the end of the tunnel. So, no qualms about its success since the popularity of its inaugural show splashed on twitter, where female foeticide trended as number one story for the day . But as the show is on route to being telecasted for a second season, questions on its intentions and its celebrity host Aamir Khan’s misty-eyed look with over emphasis on its studio audience reactions, one wonders whether all the brouhaha is overstated. So while the show gives us a glimpse into the victims life, their plight and sorrow which is served to us marinated with entertainment, may seem inconsiderate towards the contestants. Ethical being a very subjective word , we define it as, moral principles that govern a person's or group's behaviour. The meaning of "ethics" is hard to pin down, and the views many people have about ethics are shaky. MISERY LOVES COMPANY So is milking TV rating out of people’s misery, ethical? Probably No. But misery loves company. The victims shared their heartfelt stories ingenuously, with the sole intention of an increased awareness among people. Earlier, shows like Kaun Banega Crorepati season 5 too sieved through contestants, for those who have rousing backgrounds. As the cameras panned into the prospective candidate’s homes, special video montages were being prepared. Puppeting human emotions to generate TV ratings is a common practice, so when Aamir judiciously sheds tears, nods in disbelief ,and chokes amid sentences it may seem over the top, but a greater good arising from it like bills getting passed and medical licenses cancelled should be considered. TR(A)P OF THE TRPs Child sex abuse and Dowry are evils we greet everyday in our newspaper. It takes more than rallies, activism and demonstrations to make an impact. It needs a effective communicator and painstaking research on these issues. This is what satyamev jayate has done with sheer conviction via tailor made multilingual offering for the viewers. Mr. Aamir has devoted 2 years, to spearhead this project into reality. So, agreed. A well marketed man like Aamir did fall prey to industry norms by trying to pull audiences’ strings by selling emotions. But what matters is whether the message comes through. He took the concept of activism, which is normally considered as an elitist’s prerogative, to convert it into a common man’s platform and converted those TRPs into commercial success. SSR: SUNDAY SOCIAL RESPONSIBILITY Mr.Aamir did ignite a certain spark of flame within the audience, but this again is just a spark, it needs to spread into a fire. Technically speaking, when the victims, unabashed, share their experience it must be taken as a cue to start up with something. If just thought of, as a Sunday reality show, which people view to enjoy and later forget won’t suffice. The audience reactions can be gauged by this poll, but even if 1% of the families that follow this show decide to take action against any societal evil, the purpose seems fulfilled even amidst all the tamasha and rona dhona !

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FEATURED ARTICLE PRODUCT PLACEMENT IN FILMS - Divya Bhatia, Welingkar Are traditional methods of marketing dying? If you don’t believe in it, try to answer these simple questions: Do you flip advertisement page while reading a magazine? Do you fast forward commercials while watching the television? Do you have spam filter in your electronic mail box? Do you change the radio station when you hear the commercials? The answer to most of the questions must be yes. The reason behind this is that the existence of so much advertising makes advertising less effective. People don’t pay attention to ads anymore. Researches show that 80% of advertisements are skipped. Thanks to increase in technology which gives the consumers option of skipping the advertisements by using applications such as digital recorders, remote control and add blockers. Marketing by traditional methods is becoming difficult day by day, so marketer comes with this idea of embedded marketing or product placement where chance of skipping is less. After trying so many methods of marketing, brands are coming with embedded marketing or product placement as a new vehicle for reaching the customers. It is not like the TV and radio advertisements which convey the message directly. Here product is placed in front of the consumer. It helps in increasing brand recall and its instant awareness at the time of purchase. These insertions are not in the advertisement breaks as most of the people skip the breaks. They are places at integral parts so the visibility of the product increases and reaches a targeted audience which is receptive. Purpose of marketing is delivering the brand to people. By product placement or Embedded Marketing marketer is ensuring that brand is lived, breathed and delivered to customer.

TYPES OF PLACEMENTS

BEGINNING OF TREND This concept of embedded marketing is not new. It has been into use from the 19th century. The earliest reference of a product placement comes in the 1940’s Film “Chalti Kaa naam Gadi” with the brand Coca Cola and Vodka. Even this was used in earlier times in medium such as print media, newspaper magazines and particularly in novels. PROCESS In some cases marketing is done free of cost because producer is getting benefited by use of products such as free usage of clothes and accessories. But in other cases producers do charge some amount from marketers which helps producers in meeting their expenses. MEDIUM OF EMBEDDED MARKETING Movies and serials: The best method of embedded marketing is by placing it in TV program or movie in which audience see the gadget being used by their favorite stars. Videogames: Online/Virtual placements aimed at the elusive 18-34 years old demographic. As they are moving to more interactive forms of entertainment (video games, internet) Travel: Travelling vans are used for advertisements of products such as Gillette. Radio: Brand names are used repetitively in Music. Sports: Embedded marketing has been prevalent in sports from national sports to sports at school level. Camera lingers on logos of sponsors on player’s t- shirts and paintings on fields, just a little too long before shifting back to main action. Publishing- In comic books, newspapers and novels

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FEATURED ARTICLE WHO ARE REAPING THE BENEFITS Automobile industry: Is finding this marketing to be very attractive. Ford took place in James Bond’s movies. Nissan cars feature outstandingly in the television series Heroes (2006–2010) where the logos frequently zoom in/out or whole cars are shown for seconds at the opening of a new scene. Computer & electronics: Apple frequently pays for embedded marketing. It pays not in terms of money but in terms of product.

Tobacco: Tobacco companies make direct payment to stars for using their product. However they do not express it openly or don’t reveal the amount. Food and drink: Hippo in comedy circus EXAMPLES In Reality shows like India’s got talent judges are endorsing accessories’ brands. The movie “Dilwale Dulhanyiyan Le Jayenge” of the 1990s was a victorious story of introduction of “Stroh bear” in Indian market. Shahrukh endorsed Santro Zip drive in the movie “phir bhi dil hai hindusthani” NEGATIVE SIDE Brand permission: Using the brand name without permission from owner. Like in case of Dabaang, Zandu Bam Company filed a case against the director of movie and later an outside court settlement had to be made. Product displacement: Brands do not want their product to be portrayed negatively. Mercedes refused to allow their products to be used in nonflattering settings such as in slums in Slumdog millionaire.

CHALLENGES WHILE DESIGNING EMBEDDED MARKETING Compared with others forms of marketing Embedded Marketing is giving better results. However, a number of issues need to be kept in mind while utilizing Embedded Marketing. Relevance of product to the situation should be there. Language and designing of script need to be considered. Product placement turn into deceptive and undisclosed when product is not in line with storyline. And like any other marketing campaign success of this embedded marketing campaign depends on a number of factors. A famous star may draw attraction to the product but would not augment sales. Product placements must remain relevant to the storyline. Another factor to be considered is that success of product placements is reliant on the success of the movie and consequently its reach, so selection of movie or serial must be done carefully to make marketing success. Success which will be determined will be qualitative as it is not possible to evaluate Product Placements from a sales-generation perspective.

Lays in MEIN HOON NA

COCA COLA in TAAL

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FEATURED ARTICLE INCREASING TREND OF ONLINE SHOPPING IN INDIA - Wayne Soares, Xavier Institute of Management & Research My last four sneakers have been from Myntra.com and Bestylish.com, my current phone from Flipkart.com and collectively these 3 websites are a must see for me every day as I scan offers, tempting myself into a realm of fantasy purchase. Fantasy purchase is exactly what online shopping has become in India and while it’s true that the money paid is real, the offers and discounts seem surreal. It’s often wondered how a Nike and Adidas pair which are leading sports shoe brands globally can be worth a fraction of the MRP as available in stores. And while it often astonishes the customers, they are all too ready to key in his bank details and make a purchase. There will be those naysayers who think giving out bank details is risky but with an option like Cash on Delivery, it’s a winner takes all situation. Online shopping in India has thus effectively altered perceptions of High Involvement Purchasing to a considerable Low Involvement Purchase mentality. Case in point of a mobile phone which is carefully reviewed a million times by youth who are all too keen to get the best features at amazing prices, now seldom think twice before buying them online. Cue – Best Rates for First Grade Products. This titanic shift has emanated and now is slowly hitting the retail stores hard. A phase existed where online shopping was considered grave risk, but rock bottom prices and extensive variety have made consumers act/behave in rather peculiar ways. The Indian culture is known to appreciate ”Free Stuff”, be it Free food, Free drinks and now with online shopping, Free Shipping and even Free Return Policies should the consumer develop

cold feet and have a last minute change of mind. Conversely, which retail store would actually pull out money from their cash register and hand it over to you with a smile? Questioning India’s readiness for online shopping is so out of order, because Indians aren’t only ready but are frequently acting on the many seductive offers thrown at them by online retailers. Customers love price decreases/discounts especially if the company can share the benefits with them and with the elimination of some parts of the supply chain, these online retailers can well afford to sit back and offer timely baits for repeated low involvement purchasing behaviour. Offers like “Sign Up or Refer a friend and get Rs. 1000 off” are something traditional retail stores will never in our lifetime ever think of offering. The entire retail ball game has changed due to the very disruptive innovation of people being able to navigate, choose, order, pay, receive and reject at no extra charge, sitting entirely in the comfort of ones living room vis-à-vis running to malls and stores and haggling with errant storekeepers who more often than not have neither the right attitude nor product knowledge. While all seems hunky dory with online shopping, there still lies the Indian mentality of touch and feel where sans it; people just refuse to make a purchase and poor internet penetration which definitely disturbs the entire online shopping landscape. However, these challenges are slowly being dispelled with results there for all to see. With an estimated market expected to touch Rs. 7000 crore by 2015, it’s not long before we start talking about the demise of traditional retail. Consumer behavior has changed so much that now everyday life actually comprises Eating, Praying and Shopping Online!!

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SIMSR GLOBAL MARKETING CONFERENCE MARKETING METAMORPHOSIS Transforming Lives …… Nurturing Lifestyles What could be the co - relationship between Chaos Theory, Butterfly Effect and Marketing? Seemingly none on the first inspection. Edward Norton Lorenz (May 23, 1917 – April 16, 2008) was an American mathematician and meteorologist, and a pioneer of Chaos Theory. He coined the term butterfly effect. Lorenz built a mathematical model of the way air moves around in the atmosphere. As Lorenz studied weather patterns he began to realize that they did not always change as predicted. Minute variations in the initial values of variables in his twelve-variable computer weather model (c. 1960) would result in grossly divergent weather patterns. This sensitive dependence on initial conditions relative to widely dispersed outcomes came to be known as the butterfly effect. So what does this have to do with the function of marketing? If one inspects the butterfly effect statement, it appears that seemingly insignificant actions could over time affect or evolve into great extra ordinary results that were not conceived in the original action. Keeping target customers as the central focus point, small actions carried out by companies could build up into huge profitable returns. This would be more true than ever before in the highly turbulent and competitive marketing landscape. On the flip side, a small comment by a consumer put up on social media like facebook or twitter could build up into something very big, going by the logic of the butterfly effect. Therefore, successful marketing needs to move beyond identifying consumer needs and serving them profitably. The function of marketing would have to necessarily extend into transforming the lives of consumers through providing necessary products / services for a comfortable and healthy living but also providing the ways and means to nurture his lifestyle. For emerging markets like India, the power of observation to transform lives is the biggest marketing tool. Companies like Tata Motors have used frugal engineering to build cars like the Tata Nano. Mahindra & Mahindra have developed the 15 HP tractor Yuvraj 215 for the small & marginal farmers of India. Yuvraj 215 is expected to expand the tractor market at the bottom end of the pyramid and enable the small and marginal farmer to maximize yield by leveraging mechanization. The Target Group for the Yuvraj 215 is primarily those farmers who are dependent on farming with bullocks and seek to increase their land productivity at an affordable cost. This brand is a key part

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SIMSR GLOBAL MARKETING CONFERENCE of Mahindra & Mahindra’s vision to go beyond retailing of tractors and focus on creating rural prosperity through design, manufacture and marketing of appropriate farming technology. Considering that 80% of the farmers in India are still dependant on non-mechanized means of farming, the role that Yuvraj 215 will play to bring about rural prosperity is immense. This would impact the lives and lifestyles of rural India in unknown ways, bringing to the fore once again the butterfly effect. User generated content being uploaded on facebook and youtube have relocated the locus of control from the company to the consumer with respect to brand building. Websites like www.cashurdrive.com have given a different meaning to the concept of ambient media. A consumer could register his car on this website, rent out his car exterior for carrying company ads and get paid for the same depending upon the distance traversed by him / her every day and the extent of car exterior rented for carrying the company advertisement. Thus a consumer could recover his fuel expenses partially or totally, depending upon the deal entered into with www.cashurdrive.com. While organized retail is giving stiff competition to the unorganized sector in India, emergence of websites like easyration.com offer not only price advantage but also convenience to the consumer wanting to save both time and money while shopping for groceries and other daily necessities. As online shopping for groceries gains prominence, it would be a tough challenge for the organized retail to define their competitive space. Further, websites like www.snapdeal.com which give out sales promotions offers have converted sales promotion as not just a short term incentive but an instant incentive to boost sales. Deficient infrastructure in both the rural and urban markets presents its own marketing developmental challenges. There is no doubt about the correlation between infrastructure development and opening up of marketing opportunities. With technology becoming the biggest enabler for all stake holders of the marketing function, there are newer opportunities and methods of marketing just waiting to be explored.

K.J. Somaiya Institute of Management Studies & Research (SIMSR) and Interface proudly present the 8th SIMSR Asia Marketing Conference. With its theme for this year – “Marketing Metamorphosis”, the conference looks to elaborate on these aspects and more. It is a conference which gives the best marketing minds to share their work with the world. Participants from US, UK and APAC region convene to deliver their marketing work which changes the marketing landscape. The last date for abstract submission is August 27, 2012 (Monday). Abstracts are to be submitted in soft copy only at simsrglobalmktg@simsr.somaiya.edu OR simsrglobalmktg@gmail.com. For further details please visit http://simsr.somaiya.edu OR http://simsr.somaiya.edu/simsr/sgmc/index.html

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SIMSR GLOBAL MARKETING CONFERENCE Conference Objectives To offer a platform for marketing practitioners, academicians and researchers to: 1. Analyze and share their knowledge and experience of cutting edge innovations in marketing. 2. Discuss possible strategies and strategic options to overcome the challenges of technology, competition, and changing consumer profile/behavior. 3. Analyze, understand and develop strategies to cope with the ever changing marketing landscape.

Conference Dates 4th & 5th Jan, 2013 For Whom 1. Marketing Academicians 2. Marketing Practitioners 3. Doctoral Students 4. Marketing Researchers

Areas of Interest Industry Stalwarts on the Advisory Board  Brand Management Dr. Bhaskar Das  Consumer Behavior President, The Times Of India Group, Bennett Coleman  Corporate Social Responsibility & Co. Ltd. (BCCL)  Customer Relationship Management Mr B S Nagesh  E-Commerce Founder – TRRAIN  Innovations In Marketing / Sales / Distribution / Product Dr M G Parameswaran Development Executive Director & CEO, Draft FCB Ulka  Integrated Marketing Communications Mr Sanjiv Sarin  International Marketing Regional President, Tata Beverages, South Asian  Marketing To New Emerging Segments Region  Positioning And Re-Positioning Strategies Dr Satyendra Upadhyay  Pricing Innovations Consultant(India-China Trade Relations)  Retailing  Rural Marketing  Services Marketing  Social Marketing  Social Media Network Marketing  Any Other Marketing Related Areas Conference Academic Partners College Of Business & Public Administration California State University San Bernardino, USA

Xiamen University China

Venue K.J. Somaiya Institute of Management Studies & Research, Vidyavihar (East), Mumbai – 400 077, India Website: http://simsr.somaiya.edu Email: simsrglobalmktg@simsr.somaiya.edu / simsrglobalmktg@gmail.com Phone: +91 22 6728 3000 / 3050 (Board) Fax: +91 22 2102 7219

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SquAreheaD

JULY 2012

BUZZ THE CLUES

THE CROSSWORD

ACROSS

5.Vimal

6.MysoreSandal

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4.Oreo

6. Sharabha is a mythological creature having a body of a lion and the head of an elephant, was chosen as the logo of which brand? 1/9. Which photo sharing platform, launched in Oct 2010, has a distinctive feature of confining photos to a square shape?

3.Maybelline 9.Instagram

5. The founder of which famous iconic brand named it after his elder brother's son and it had marked the arrival of advertising agency given in the pics?

2.ThumsUp 8.Tissot

4. One theory suggests that the name of the company was derived from sandwiching of cream between two cookies.

7.Ambassador

"Bholu" the guard is the mascot of which organisation? This is a hill at Manmad, Maharashtra was the inspiration for this company's logo? The founder of which company was inspired by his sister while she was applying a mix of Vaseline and coal dust to her eyelashes? The pic shows the earlier name of the company. Which car, based on the Morris Oxford model, is fondly called as "The King of Indian Roads" and is owned by the company given in the pic? Which company, owned by the group shown, is known for introducing the first anti-gravity watch, first pocket watch with two time zones and the T-Touch technology?

1.IndianRailways

DOWN

CALL FOR ARTICLES AUGUST 2012 Articles can be sent on any one of the following topics*:

1. Olympic effect: Sharp rise in Sports Apparel purchases 2. Intel Ultrabook - Does Intel exert excessive control on computer hardware companies? 3. Personalized services in Organised Indian Retail: sensible or irrational? *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 from 500-600 words and MUST be replete with relevant pictures that can be used to enhance your article. 3. Send in your articles in .doc/.docx format with font size 11 (Arial) to: interface.newsletter@gmail.com 4. Subject Line: Your Name_InstituteName_CourseYear. 5. Kindly name your file as: Your Name_Topic The best adjudged article will be given a winner's certificate. Deadline for submission of the articles: 11:59 PM , 16 August 2012.

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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

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