Markmantra is the brain-child of IIFT, encompassing various dimensions of marketing and exploring horizons of this integral business function. To bring out the best in the marketing domain from the trivial to the bizarre things that really matter which is aimed at enlightening the marketers is the onus of the team. We have a legacy of producing one of the best marketing magazines across all B-Schools. Trend analysis and innovation in the market are two prime focus areas of the magazine. These, we think, will make you ponder upon how a company proactively or reactively markets its offerings. Customer value is of paramount importance to every marketer and we as IIFTians strive to provide maximum value proposition to our customers, that is, you. This edition of Markmantra focuses the most core aspect of Marketing, i.e. Why is Marketing Needed in the First Place? The theme, “Why is Marketing Important”, seeks to dispel the belief of “Marketing is Just Gas” from people’s minds, all the while convincing them about the importance of marketing in today’s era of the evolved-and-ever-informed customer, the roles it plays right from the birth of an idea till the final sale, the work it does to turn unknown strangers into hardcore brand-loyalists, the magic it works to change the image of an “also-ran” brand into one with a cult following and what not.
TEAM MARKMANTRA Editor-in-Chief
Gaurav Gudhka
Managing Editors
Sidharth Nanda
Prashant Sishodia
CONTENTS
i.
Cover Story: Why is Marketing Important ??
1
ii.
International Marketing
3
iii.
Marketing: From Inception to Conclusion
5
iv.
World Without Marketing
8
v.
Recession? Dial ‗M‘ For Marketing
11
vi.
Corporate Speak: : Mrs. Charu Makin, VP, Bang & Olufsen
vii.
War of Brands: Coca-Cola VS Pepsi
14 17
viii. Viral Marketing
20
ix.
Marketing Failures
24
x.
Marketing Lingos
26
xi.
Out-of-the-World Marketing Ideas
28
xii. Product Launchpad
29
xiii. Ad Competition Brooke Bond Taj Mahal Green Tea xiv.
Light-Headed Corner
31 32
MARKETING IS GAS, THE OXYGEN OF AN ORGANIZATION Marketing strives for exploration, creation, communication and delivery of ‗value‘ which is a combination of quality, service and price. The relevance of marketing cannot be emphasized more than by talking about its significance in the following areas: Growth and profit centre: Sales is a subset of marketing and one of the most important facets of marketing. This brings out the aggression marketing has. Product development: One can‘t produce a product or a service without conducting any kind of market research. One has to constantly look out for need gap or create a need out of a latent need per se, like in the case of an iPod. So the dynamism of marketing is very crucial. Relationship management: It is imperative to keep the customers satisfied so as to sustain the business and the profitability. Marketing is solving customers‘ needs profitably, which is the essence of relationship management.
In
b-schools, marketing is often termed as ‗gas‘, for more than one reasons like it has no structure, no hard and fast rule. Let‘s agree to disagree with this acknowledgement. It is gas; actually it is the ‗oxygen‘ for any organization. It is omnipresent around customers and personnel alike and an integral function of any organization. So what is the whole hoopla contemplating marketing as a subject matter of research studies? Well, the studies have seen a transition from the Production concept of mass production and distribution to the holistically developed Marketing concept of any organization‘s orientation towards the market place. Today marketing entails integrated marketing which is essentially the mix among the various Ps, relationship marketing with customers and channel partners, along with performance marketing with respect to growth centric approach and internal marketing with various other stakeholders. It is not only about goods and services; marketing has risen to such an extent to market ideas, experiences, people, places, events, properties, and organizations to capture various prospects. What defines marketing is the key fundamental of management to have meaningful insights of the marketplace and proactively act to achieve mutual benefit among the several stakeholders.
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Brand equity: Marketing contributes the maximum towards enhancing the brand equity of a product or of an organization, encompassing brand loyalty programs, brand associations with different parties and brand perception in the minds of the target audience. IMC: With the advent of Integrated Marketing Communications, marketing has epitomized its glorious position in the organization towards transforming the entire communication process. Organizations can provide clarity, consistency and maximum impact through seamless integration of messages with the combination of various promotion tools. Without marketing it‘s impossible to survive in the market place. Market intelligence forms a vital part of business intelligence which is why marketing holds a key position to drive the future growth potential of any organization. The following articles will reinforce the importance of marketing in different respects.
Gaurav Gudhka MBA(IB) 2010-12 Indian Institute of Foreign Trade
2
INTERNATIONAL MARKETING A NEBULOUS CONTINUUM that scenario, but it‘s easier said than done. It involves optimisation according to needs of various regions and countries, and is a timetaking process that entails continual learning. Firms that succeed in this optimisation process achieve the enviable dream of being truly global.
There are opportunities in the life of a firm that have the potential to make it a truly world-renowned company. That‘s when the momentous decision of going international has to be taken by that firm. But taking the decision to go international, howsoever obvious it may seem, can be quite dicey.
These stages actually symbolize a continuum, and all international firms lie somewhere in between these two extremes of being either purely domestic or being truly global. But this continuum is nebulous as taking firmwide decisions to move in that continuum to reach that global stage are complicated by multitudinous factors, which are the subject matter of International Marketing. These factors include macroeconomic factors like exchange rates, GDP, Balance of Payments, population, as well as geo-political factors like political stability, cross-border laws, trade agreements, etc. Another vital factor is culture, which involves variation in knowledge, beliefs, language, art, morals, customs, and other social dimensions. Overgeneralising these factors can be a potentially disastrous decision as many international failed-entry stories have proved time and again.
Consumers today are spoilt for choice in this age of world-class products. Opportunities are ripe for firms as markets around the world are opening up and demand for their products is increasing exponentially. Conversely, it means that a purely domestic firm faces a significant competitive threat from abroad, and so it must take the international route sooner than later. The million dollar question is, how? Export is usually considered the safest mode, where the effort to market the product abroad is minimal. When some particular country market begins to appear especially attractive, then the firm might want to enter them on an ad-hoc basis, but still there is little marketing effort involved in this case as the firm tries to adapt its product to the local requirements each time it enters a new market, which involves high cost and inefficiencies in the value chain. There‘s a strong incentive for a multinational firm to standardise its product offering in
3
These complexities have to be dealt
facturing to direct entry, requires great deal of
with utmost care and would involve stepwise
deliberation and far greater research. Impor-
measures beginning from a detailed cross-
tant decisions regarding the 4Ps of marketing
cultural market research. Making the right en-
are what the firm has to decide upon at a later
try decision is the most important aspect in
stage.
this scenario. The basic marketing tools of
These nebulous complexities are what
segmenting, targeting and positioning retain
International Marketing attempts to simplify,
their importance, only their context and scale
and hence its importance in today‘s increas-
becomes more global. Choosing the right en-
ingly globalising marketplace cannot be un-
try mode from exporting to licensing and fran-
derrated.
chising to turnkey projects to contract manu-
INDIA
MCDONALD’S AROUND THE WORLD CHINA
BEER IN GERMANY
ISRAEL
ARAB NATIONS
Jayant Rana MBA(IB) 2010-12 Indian Institute of Foreign Trade
4
MARKETING: FROM INCEPTION TO CONCLUSION Author
way to trigger conversations than a ―broadcast‖ channel, marketing has been by far the best way to hone product pitch and improve it too. Marketing during initial phases helps to nurture products, position them strategically, assess the competition, and work toward products‘ development. Moreover it helps in developing product-pricing strategies and monitoring trends. A very generic idea of marketing an idea was displayed by Mark Zuckerberg when he used the faces of students of Harvard University to spread his idea of comparing photos online. Today we all know how that small marketing idea led to creation of one of fastest growing Internet Company with more than 800mn users and revenues of more than $4.25bn.\
and management expert Peter Drucker
very aptly mentions: ―Because the purpose of business is to create and keep a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.‖ Marketing in its very etymology includes ‗market‘ and that is what any product or service launched desires to serve. The aim of a business to earn profit is met through its customers and here comes the role of Marketing. Marketing is necessary to realize what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. An idea is just a potential business. Now to realize the possibility of the conversion from idea to business is where the point of marketing starts. Marketing since Inception of the idea of the product or service to be offered is when the curiosity is created in the minds of the customer. Marketing should be treated more as a
Successful Launching a product is as important as developing it. Devising a Marketing strategy aligned with the Customer and partner needs provides the product much needed recognition and acceptance from its target audience. Various aspects of Marketing in launch broadly involve (a)Market Analysis, (b)Competitor Offering, (c) Targeting Customers,
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(d)Unique Value Proposition, and (e)Pilot Customers among others.
establishing the Brand to creating brand Loyalty and increasing the customer base. The exhibit alongside describes the Marketing ac-
Assuming that marketing will take care of itself can prove expensive at later stage. Apart from creating awareness about the product it also dictates important budgeting and longterm planning decisions. A successful marketing campaign drives hundreds of first time consumers who in turn spread word of mouth driving other thousands.
tivities designed at Sales stage.
It is more
about making the consumer realize the company‘s unique product proposition that demarks it from the competition around. In case the firm deals with products in which the features and customer desires keeps on changing, lack of proper marketing can prove fatal. The
Today it is common to see Bollywood movie
growing market share in Telecom is the youth
makers exploring new avenues to market their
and realizing the same Airtel has recently
product (the movie, its music, its ringtones) during
the
release
of
the
launched its ‗Har ek friend zaroori hota hai‖
movie.
campaign. The campaign catches the youth‘s
―Approximately 70 percent of a movie‘s reve-
sentiments and positions the brand in the most
nue such as theatrical, home video and satel-
vibrant and happening target segment. The
lite are impacted by its marketing buzz, so the
campaign has been very successful in getting
marketing has to undoubtedly be very effec-
Airtel the attention and its dominance in the
tive,‖ says Stu-
youth market by
dio 18 VP mar-
focussing on the
keting, distribu-
‗friendship‘
tion and syndication
Priti
Shahani.
The
con-
cept. In today‘s fierce market
competi-
shows the ex-
tion,
relatively
penditure
similar
table
below in-
product
curred in Mar-
quality, and ex-
keting and Pro-
cessive marketing
motion of famous movies made in Bollywood
by all companies, the quality of service pro-
in recent past.
vided after-sales of the product becomes a major differentiator for any customer. Poor after-
As the product changes from being introduced
sales has more annoying effect on a customer
to being accepted by the customers, the role of
than minor faults in the product quality, as it
Marketing in growth of product changes from
directly reflects on the customer
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friendliness of the firm. Apart from customer
Quality of product or service is quintessential
service, after-sales have also proved to be a
and Marketing can only enhance and accentu-
source of revenue for many manufacturing
ate the USP of the product making them more
firms through product installation, configura-
desirable.
tion, maintenance, and repairs. Moreover, recent Economic downturn has made everyone realize the importance of after sales service marketing (eg. Chevrolet Motors) when customer buying sentiments were all time low. There has never been any doubt about the importance of marketing but realizing its potential from inception to conclusion has led to creation of Successful Global brands in Ford, Apple or our Indian Brands like Tata or Airtel. The firms have always utilized the Marketing Strategies be it 4P‘s, STP or Branding to keep their products ahead of competitors and increase their benefits to shareholders. From Inception of the idea of Product or service to its conclusion which covers the whole life cycle Marketing has definitive and significant role. At last it becomes imperative to mention that
Ashish Agarwal MBA [2011-13] Faculty of Management Studies University of Delhi
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WORLD WITHOUT MARKETING
Imagination is an individual‘s right and that is what we urge you to do in this article in order to better appreciate the necessity of marketing. What if our world suddenly loses the power of marketing? What if marketing suddenly becomes the one word that is unheard off or maybe loathed by everyone equally in the globe? These very thoughts will definitely conjure in your minds the image of a utopia in the making, where there are no bill boards that divert you in the roads, where there is never any actor or actress urging you to always buy the best product that they have to offer you and enough of all those 5 second advertisements which stand between you and your favourite television series. Just when you conjure up these pleasant feelings and think that the world has finally changed for the good, we as marketeers would like to bring in a stark reality- The world without marketing is a world worth not living! There is every reason for us marketeers to make such a strong statement in support of marketing, the reasons which can be best realised by threading along the same imaginary route of the so called non marketing world. So here it goes!
logic and you may think that the mother was completely insane to have forsaken her son‘s fate to the poor design of the sword. A situation similar to this is what we will experience in the world without marketing. People will lack choices, and even if they had choices they would be ignorant of those and even if they are aware of these choices, they would be confused on choosing them. And all these will lead to chaos and confusion in the simple decisions being made and hence today‘s consumer will make the same mistake as the fabled mother. If every person has to think for a minute before making a decision to buy any product, then imagine how miserable life will be. Won‘t we find it hard to ask the shopkeeper for a cool drink instead of simply asking for a Coke? Is it not hard to ask the shopkeeper for a substance that sticks furniture while you can easily ask for Fevicol? We don‘t buy products which satisfy our needs, we buy brands which satisfy our needs and without these brands are we not lost? All these questions bring us to one answer that everyone has to invariably agree with – Without marketing, there is no choice. The Inherent Change: Innovations are successful only with the audience to accept it. Many innovations would have failed if consumers did not appreciate and adopt them. And how do they come to know of what new is being offered. It is marketing!
The Right to Choose: Suppose that there was an ancient Indian woman whose husband had gone for the battle. He had with him a sword of poor design which caused him to lose his life. The wife knew this well but sent her son for the battle with the same sword. This story may lack
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belonging to the crème de la crème of the society. The reason for such recognition is because brands are conception in the mind of the social symbol associated with it. Every man wants to define his social status and the most powerful weapon he employs to meet this goal are Brands. And without marketing, the means to define these status and symbols are lost. Wouldn‘t it hurt the ego of a person who spends lakhs to buy a new Mercedes while you, on seeing it, sheepishly claim it to be Maruthi? Wouldn‘t it be easy for him to wear a Peter England that costs in thousands instead of adorning an Armani suit which would cost him lakhs? What difference does it make? It does make all the difference! It makes a difference in defining him as person. It defines his social class and status. Without being able to differentiate him, man will feel a void in his social life and he would go to any length to satisfy this animal need. After all, man is defined a social animal. Hence, we may rightfully conclude the third necessity of marketing – Without marketing, there is no social recognition.
Without marketing, there is no concept of a new player. All the ideas though potentially effective will meet the fate of being tagged as good for nothing creations. No one will be able to appreciate these innovations except the makers themselves. This will lead to monopolistic or oligopolistic markets which none of us would desire. There will be no investment in R&D for fear of poor ROI. Change will never happen because of the fear of this change. And hence the mental world will finally come to a standstill. Consumers will have to use the same product again and again. The washing machines of the 2015‘s would be similar to those of the 2050‘s. The cars will be same, the bikes will be the same, the goods will be the same and the most pitiable of all is that the people will also be the same. All this now brings us to the second necessity of marketing - Without marketing, there is no change. The Social Creed: Have you ever imagined why the people from the upper class spend most of their fortune on branded luxury goods? They spend thousands of dollars in an automobile that looks just like any other but with the different logo up front. And every eye that glances at this small logo acknowledges the man inside to be someone
The Media Maker: Now let us turn our discussion towards man‘s most faithful friend who brings in lots of entertainment expecting nothing in return i.e. the media.
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People love to see the TV serials and listen to the round the clock news channels. But how do these media elements survive? Is it not advertising which is their primary and solitary source of income? If that‘s the case, then without marketing where would they be lost? In this economic downturn coupled with new technological trends we find that many newspapers have closed operations because they are not getting adequate advertising revenues that they need to survive. A lack of advertising leads to the disappearance of the media which also marks the end of the man‘s foremost entertainment quotient. Although we are aware of the problematic influence that advertising has on editorial contents in the media, still we can‘t seem to come up with ways as to reduce these effects which in itself is a true indication of the power of marketing on media which rightfully serves as the fourth necessity.
ing? Marketing brings needed products and services to impoverished people in the world. Clean Cook stoves is an initiative by Global Alliance is which cut emissions by more than 80 % and use half as much fuel and as such addresses many health problems in impoverished areas. Again there is the One Laptop per Child initiative in some countries where children in emerging economies is given a laptop which connects to the internet by their governments and school systems. Marketing defines the possibilities of spreading such a cause and hence is the very foundation on which the causes are built. Gone be marketing, lost will be the cause. Limitations know not! Infinity is the way: These may be the few highlighted needs that marketing helps to satisfy but we should remember that there is every other reason to prove that marketing is inevitable in our life. All the above reasoning justifies the hypothesis that we rightfully defined in the beginningThe world without marketing is a world worth not living! What pity it is to miss the bright and beautiful world of marketing!
March for the cause: Everyone lives for a cause and everyone gets together for a cause. Many fight for the cause and there are many to promote this cause. If we need to generate awareness for an important cause how do we do it if not by market-
Jayanth Renatheus Raj MBA(IB) 2011-13 Indian Institute of Foreign Trade
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Nandita Koch MBA(IB) 2011-13 Indian Institute of Foreign Trade
RECESSION? DIAL ‘M’ FOR MARKETING ket Sense data, Jell-O, Crisco, Hellman's, Green Giant and Doritos saw sales drop by as much as 26-64%. ―Jiff peanut butter increased ad spending and sales went up 57%; Kraft salad dressings saw a rise of 70%. In the beer category, overall spending was down 1% while Bud Light and Coors Light, each spending ahead of the category, saw sales increases of 15% and 16% respectfully.‖ Still not enough food for thought that marketing serves as a saviour during the recession? Read further… General Motors' Chevrolet division abandoned its traditional practice of setting its advertising expenditures as a fixed % of sales. While volume fell 10 % because of the economic slowdown, Chevrolet maintained its ad budget and increased advertising for its fuel-saving economy models. Ford Motor Company, on the other hand, slashed advertising by 14 % in an attempt to shore up profits. As a result Chevrolet‘s market share increased by 2%.
Economic Downturns are tough times, not only for individuals but for the companies on the whole. While all the functional wings are contemplating a cut in their spending, austerity drives are seen as the ‗need of the hour‘, it‘s a catch twenty two situation for the marketing wing. Marketers often find themselves in muddy waters because of differing nature of any two downturns. How a marketing manager needs to react? Which marketing approach to follow-slam-on -the-brakes or Pained-but-patient or comfortably well off or just live for today? In the following paragraphs we try and gauge into how marketing acts as the one department which identifies recession as an opportunity to gain some more ground at the competitive level. McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that ―b2b firms which maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising.‖ By 1985, sales increased over 256% for companies that increased recession ad spend than those who slashed ad spending.
During the Great Depression, both Kellogg‘s and Post were tied for market share in dominating the breakfast cereal category in the 1920s. Post cut their ad budget while Kellogg‘s increased theirs by 1 million $. After the recession, Kellogg‘s profits improved from $4.3 million a year in the 1920s to $5.7 million in the early 1930s, beating out Post. Do we observe a particular pattern in these cases?
Market Sense compared 101 household name brands during the recessionary period 1989 -1991. As per Mar-
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Let‘s not go further back into the history, looking at some recent responses to recession by top companies. In the early 90‘s, Pizza Hut sales soared over 61% and Taco Bell‘s saw a jump of around 40% with strong advertising, while McDonald‘s reduced advertising and their volume decreased the sales by 28%.
was sponsoring 21 radio programs, and virtually doubled its radio spending every two years during the depression..P&G reaped rich rewards for being the only marketer among the five biggest U.S. advertisers to increase spending in 1991 & consequently increasing sales and earnings, surpassing $30 billion mark in 1993 & thus emerged out of recession with flying colours. Intel, made similar moves & reaped the benefit of enhanced marketing spending during recessionary times with increased sales margin & profit.
During the same period(1991), advertising in the computer hardware category was slashed by 17.5% over the previous year. Apple, Digital, IBM and Tandy well known spenders in this segment - all made significant spending cuts those accounted for one fourth or even half of their marketing budgets. On the other hand Dell increased its marketing spending from just $1.4 mn in 1990 to $6 mn in 1991, a 346% increase. Marketing cuts by the competitors of Dell worked in favour and with the help of its own initiative to increase the marketing spending Dell saw itself in the fortune 500 roster of the
world's largest companies. By 1993, the company was among the top 5 computer system makers worldwide, and within the next 8 years it became numero-uno in market share(2001). Times change, but trends seldom do. Similar trends followed when another FMCG giant, P&G increased spending on marketing during recessionary times. P&G realised the importance of radio spending on ads & harnessed this potential of this field with launch of first P&G radio soap opera "Ma Perkins," sponsored by Oxydol in 1933 followed by "Vic and Sade" for Crisco, "O'Neill's" for Ivory Soap and Forever Young" for Camay. By 1939, P&G
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Rosabeth Moss Kanter suggests five principles, Increase customer contact and communication , Hunt for new markets, Invest in employee morale, Emphasize and reward small wins, Stick with your values. John Quelch, Professor, Harvard Business School also emphasizes on some points for managers who intend to stay ahead of their competitors during downturns Focus on high potential customers’ i.e. firm
and strong relationship building with cash rich or long term oriented customers in growth industries where pent-up demand will happen, once recession period gets over. Don’t assume a return to normal The consumer behaviour and attitudes fluctuate with situations at hand. Thus consumers expect novelty pushing the firms to revise their market segmentations and assumptions related to them.
Make sure the target segment is assessed and its the trust in the brand is intact. Firms need to add service support & pay more short term attention towards customers, assuming service quality remaining unchanged. Stay focused on costs Excess inventories in supply chain preventing customers from tightening cost controls & improving productivity. Develop scenarios Be prepared for a sudden boom in demand. Knowledge of how can the supplies be sourced & diversifying the distribution if the demand increases suddenly or abruptly is of utmost importance. Don’t wait for permission Getting ahead of the crowd, focusing on your lead indicators & crafting your recovery plan. Smart hedging has outweighed smart marketing In the end, it can be ascertained that although it‘s wise to contain costs, failing to support brands & device winning strategy for marketing, or gauging customers changing needs during recessionary times can affect firm‘s long term performance. As John A Quelch mentions ―Companies that put customer needs under the microscope, take a scalpel rather than a cleaver to the marketing budget, & nimbly adjust strategies, tactics & product offerings in response to shifting demand are more likely than others to flourish both during & after a recession. i.e. While businesses are putting customers under a microscope, their customers are, in turn, examining them more closely than ever.‖
Mayank Mahajan MBA(IB) 2011-13 University Business School, Chandigarh
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Anuj Kapoor MBA(IB) 2011-13 University Business School, Chandigarh
CORPORATE SPEAK Mrs. CHARU MAKIN VICE-PRESIDENT BANG & OLUFSEN
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In what aspects is the luxury sector different from other sectors like FMCG or consumer durables etc.? The luxury segment operates in a different manner from other segments. While the „generalâ€&#x; high inventory turnover, easy accessibility et al. are desirable, we work hard to ensure exclusivity and uniqueness in our offerings so much so that not only does each client get an offering tailored as per his/her own set of requirements but each time he comes to us, we amaze him by how our offerings adapt according to his changing needs. We strive to take the benchmark of luxury to new heights. We not only deliver products but also experiences of a lifetime. If our product is available in every household like FMCG products then it will not continue to be a premium luxury product. Also our job does not end at making the sale. Delivering the products to customers within certain time limits, ensuring that every package is shipped on time and reaches without any damage, providing help for fitting the devices which have arrived etc. - all form an important and big part of successful completion of the deal with the client. What is the marketing model followed at Bang & Olufsen? The business grows on word of mouth. In the luxury segment, one wants to be sure that the product one is investing in is the best as per their requirement and hence customers rely on reviews they get from current users of the product. Institutional buyers revisit us due to the exceptional quality and high aesthetic sense which their customers relish. Also customers who experience these products at these institutions and are taken in by their sheer excellence and unmatched quality come to us for audio solutions, television sets etc. to be fitted in their homes. The advertising route is not our prime marketing tool as our target group is very small and targeting the masses with advertisements will involve huge spillovers and furthermore, in luxury segments, exclusivity has to be maintained.
Which category forms major clientele of Bang & Olufsen - B2B segment or B2C segment? We get business from both institutional buyers and people looking for audio solutions, home theatre systems etc. for their homes. We do not have official tie up with any particular vendor but good service and high satisfaction levels of customers who experience our products in these institutions gets us loyalty from our institutional buyers.
What differentiates Bang & Olufsen from its competitors? Bang & Olufsen has continued to amaze its clientele by design excellence, high innovation and continuous product development. The R&D expenditure of Bang & Olufsen is one of the highest. At Bang & Olufsen, we do not believe in compromises and strive to deliver to our customers only the best and nothing less. Unlike other companies, our Design R&D team and R&D team of Technology experts work independently but coherently. If the design team comes up with a certain new designs, technology experts ensure to deliver best technology solution for the new design suggested even if it requires devising altogether new methods. The solutions we provide are so high in aesthetic sense and quality that customer loyalty comes naturally.
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You have shifted from finance roles at banks to consultancy and now to retail in the luxury segment? What lead to such a career path? I have worked with HDFC, Citibank and ABN AMRO. The reasons I shifted from one to another was more circumstantial than anything else. But the job profile was more or less progressing in a consistent fashion despite the switch between companies. After having worked at the three banks on different financial roles, consultancy came naturally. I believe having seen functioning of the sectors up and close that too in different companies equipped me with certain invaluable experience and on-site knowledge; these formed a very strong tool for me as a consultant. So shift to role of a consultant at Resource Angle was a part of the natural flow. The point where my career path deviates from consistency was when I joined Bang & Olufsen. It was an unforeseen twist of events, missing of a flight, a regular „How are you?‟ call made to an ex-client that got me the offer of joining Bang & Olufsen. I had no earlier experience with retail, but confidence that was shown in me gave me encouragement to go ahead and the hard work I put has reflected in Bang & Olufsen India‟s growth. When I look back I am really satisfied with my work and I am really glad that I got the opportunity to explore so many avenues in a relatively short period of time Not only your career path, but also your education background speaks about your explorative nature. You pursued business studies, an MBA and a course on Law? Yes, I have explored a little in that domain too. I believe whatever we apply in practical life and in our work on daily basis has its roots in what we have learned during our academic years. While I agree with the fact that bookish knowledge alone does not take one far, I strongly believe that absence of knowledge cannot be made up for by smartness alone. When I look at the course on law I pursued, I realize how much it has helped me despite not being directly related to my field of work. I have put it in use on a daily basis. Whenever there is a legal conflict or a client trying to mince words, I am on an alert and quite a few times the deals have been more beneficial to both parties, B&O and our clients, because of my learning at the Law Centre. So diverse or not, knowledge is most fruitful if one assimilates it and applies it whenever required. If you look in retrospect, how has IIFT left you a different person than you would have been had you not been a part of this institute? Like I said, no knowledge ever goes waste. Infact some of my learning at IIFT has kept me in good stead today also. For instance, there was a course on international negotiation which I pursued at IIFT and I vividly remember what my professor once said - "Whenever you are negotiating, do not put on table all the cards you have. And do not give up. Frustration or giving up while negotiating is battle lost. Stay with a calm face and it will ensure you have the last say". In luxury segment, dealing with ones clients forms a crucial part of the business. The client needs to be more than convinced before spending a lump sum on a luxury item which he will be buying to use it for a decade if not more that his product and no other product is a solution to his needs. I have always maintained composure during client meetings even if stagnant situations have cropped up; I have tried to wade through. A number of times, deadlocks got resolved with patience and continuous efforts to make the deal fruitful for both partied. Even the clients notice and admire the dedication and want to get associated with Bang & Olufsen.
(As told by Ms. Charu Makin to Ms. Bhavna Verma, MBA student at IIFT)
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WAR OF BRANDS
VS The Cola Wars Domestic firms in India which once enjoyed the benefit of sheltered markets are increasingly facing competition from global giants in the 1990s. Whatever route Indian firms take to deal with competition from MNCs, it is imperative for them to keep track of global strategies of these firms. Often the strategies undertaken at the local level are only part of the global strategies, because it is difficult for any firm to allow significant differences in approach in different markets. After the second coming of the international varieties of Cola drinks, the market has witnessed a highprofile tussle between the global giants - Coca -Cola and PepsiCo. This tussle and the respective problems faced by the two firms in the Indian market are extremely instructive. It‘s been decades since these Cold drink giants are fighting over Indian cold drink market share. First it was cold drink, and then the fight extended for other sections like energy drinks, healthy snacks, namkeens etc. Last year it started with Fanta‘s Holi ad for Coke, where Genelia De Souza was seen in a retro look. The ad was fresh and sent a clear message. For some reasons I had not been a Fan of Cola ads but this was unique and cool. Just after this ad, Coke‘s another ad appeared on screens
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promoting Coca Cola and featuring Imran Khan. This ad really takes all the points away for its brilliant execution- be it the concept, the background score or the super cute looks of both Imran and the western lady. Pepsi also started showing its new ―Ranbir Kapoor‖ ad on TV, but with the same ‗Youngistan‘ concept. Ad is good but concept is too cliché now for Pepsi. The ad concept worked earlier as it
was new and Coke didn‘t have anything competitive. There are many other instances also where they underwent advertisement wars through print ads and video ads, trying to stay on top of each other. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies is exactly the same, the two companies rely on somewhat different marketing strategies. Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records. Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. For instance, in certain countries, consumers wanted a soft drink that was low in sugar, yet did not have a diet taste or image. Pepsi responded by developing Pepsi Max. These companies in trying to capture market share have relied on the development of new products. In some cases the products have been successful. However, at other times
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the new products have failed. For Coke, changing their original formula and introducing it as ―New Coke‖ was a major failure. The new formula hurt Coke as consumers requested Classic Cokes‘ return. Pepsi has also had its share of failures. Some of their failures included: Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One solution to increasing market share is to carefully follow consumer wants in each country. The next step is to take fast action to develop a product that meets the requirements for that particular region. Both companies cannot just sell one product; if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their ―target markets‖. Gaining market share occurs when a company stays one-step ahead of the competition by knowing what the consumer wants. It was Pepsi first which understood varied needs of Indian taste and introduced various India centric products like ‗Kukure‘ and ‗Lays with Indian flavours‘ . On the other hand Coca Cola considered India as a regional outpost until last year, but after the economy toppled else where they should take India seriously from now on.Now there are two other sections where they both are competing- energy drinks and Lemon water/mango juice/other juice.
Pepsi entered into market with ‗Nimbooz‘ which was success, and hence Coke is planning to launch ‗Minute Maid Nimbu Fresh‘ this year. But in Mango drinks they both have strong market presence, ‗Mazaa‘ and ‗Slice‘ compete with Parle‘s ‗Frooti‘ in this segment. Coke is also launched its energy drink ‗Burn‘ last year to enter into the Rs 250 crore energy drinks market. This whole thing proves that Coke is finally getting its act right to become the number 1 Beverage player in India. Indira Nooyi has made tremendous efforts to make ‗Pepsi‘ a brand for young generation in India. From sponsoring Cricket World Cups to hiring young Brand Ambassadors and making youth specific slogans, they have done a lot to make ‗Pepsi‘ a true brand. Coke on the other hand is still confused how to promote a single brand. They actually fail to unite brands like ‗Thums Up‘ and ‗Coca Cola‘ and these brands actually compete with each other. Coke needs to do a lot more to make people brand its other successful products like ‗Pulpy Orange‘.
Viksit Arora MBA(IB) 2011-13 Indian Institute of Foreign Trade
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VIRAL MARKETING YOU CAN’T BEAT THE VIRUS Viral Marketing is the latest buzz word. It is of interest not only to Marketers but has also been a topic of discussion amongst economists, sociologists, entertainment Industry and the strangest one- hold your breath- entomologists !! Viral Marketing is not a new concept, it has been in existence ever since the living organisms first learnt to communicate with other life forms. Like living organisms , this phenomena of viral marketing has evolved
explanative rationale or justification. This is the reason why some movies/work of art creates a buzz and earns heavy attention and profits while other equally good movies remain unnoticed and get languished slowly. This is the reason why some products work while other equally good products fail, It is viral Marketing that guides this paradox. Such an irrational behaviour is also seen in Ants. An individual member of the Ant colony discovers a source of food, almost randomly. This member then leaves trail through which other members of the colony get to know about the food source. The viral message spreads till the entire colony gets to the food. Paul Ormerord, author of a book titled ―The Butterfly Economics‖, conducted a series of experiments on this behaviour of ants and found out that the selection of the food source by the first ant member is almost a random event and not a matter of careful selection. After the discovery the entire colony follows the trails and reaches the food source. There might be a larger, sweeter and better food source nearby but still the colony goes to the initial smaller source. In the same fashion, some products that somehow receive an initial positive feedback continue to generate profits while other better products remain unnoticed. Paul is an anthropologist, entomologist and has depicted several useful insights by observing the behaviour of ants and then mapping its correspondence to human behaviour. It is observed that behaviour of ants and hence to some extent Viral Marketing is a Chaotic System. Chaos theory defines a chaotic system as a system where in a small change in initial
through ages and now attains a magnificent form which affects almost all the spheres of life and business. After the fruition of social networking on internet, viral marketing is now one of the most powerful and yet the most simple tool available to ‗A Common Man‘ and that is what makes it so impactful. With its rising use and applications, this form of marketing is taking us closer to the next wave of creative destruction for a more efficient and powerful restructuring of our ideas, business, entertainment, Economics and the entire social structure. Viral Marketing is one phenomena which challenges the very foundation of Economics. One of the most important assumptions in the study of Economics is that it assumes that all Economic agents are rational and behave in a way that enhances their own returns. It implies that individuals/organizations take a decision based on a well-defined logic. Viral Marketing and related phenomena defy this assumption. A viral message makes economic agents make an irrational choice. People do what their peers are doing and regardless of an
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conditions can result in huge effects in the final outcome. In other words there is no relation between size of an event and its effect. In a famous remark about Chaos Theory it was said ― A butterfly flapping its wings in the Northern Hemisphere can cause a hurricane in the Southern Hemisphere‖. The same is true for a viral message and viral Marketing. A small change in the viral message can have dramatic change in outcomes. Viral messages hence have to be very carefully crafted so that they impart the intended message in the right form, without any dilution . Viral Marketing through small but powerful measures brings about a big change in the status quo. This was one of the reasons why the recent song ―Kolaveri Di‖ became an instant hit in the blink of an eye. Within a week there were around 20 million people who had viewed this song on YouTube and other media. However, it wasn‘t just a coincidence. Then, how did it start? There was some clever behind-the-scenes effort that helped win over the masses. The process began with 30-40 people tweeting the song, which was the initial seeding process. ―Facebook, YouTube and Twitter formed the core of our strategy,‖ says Prashanth Challapalli, business head, Jack in the Box, the social media agency working with Sony Music India to market the song. The unveiling of the song was done in phases, starting with the Sony Music South Facebook page, which had a fan base of 2 lakh. Friends, cast fans and others were asked to push the video and it caught on. What really did the trick was Twitter. The company created a hashtag called #whythiskolaveridi and started posting quirky lines like ―Iceland has not heard whythiskolav-
eri di ‖, ―Not c al l ed for 2 d a ys #whythiskolaveridi‖ with the YouTube link to the video. This built curiosity and as a natural impulse people began clicking on the link. The biggest advantage of Twitter is that the content gets noticed by people you don‘t know, unlike Facebook where content is only visible to friends. Bigwigs like Amitabh Bachchan, Anand Mahindra and Salman Rushdie cottoned on, after which the song sparked a huge following both in India and abroad. For any viral strategy to work, it must have the potential for user-generated content. The beauty
of Kolaveri Di is that the team did not piggyback on the star cast to get people hooked. What worked was a combination of online seeding, mainstream PR and a song shot in a non-posed and non-cinema environment which everyone could identify with. A viral is largely self promoted; what worked for this one is the fact that it is very entertaining. The Classic Hotmail.com Example The classic example of viral marketing is Hotmail.com, one of the first free Web-based email services. The strategy is simple: 1. Give away free e-mail addresses and services, On July 14, 2010, Old Spice launched the fastest growing online viral video campaign ever, garnering 6.7 million views after 24 hours, ballooning over 23 million views after 36 hours. Old Spice's agency created a bathroom set in Portland, OR and had their TV commercial star, Isaiah Mustafa, reply to 186 online comments and questions from websites like Twitter, Facebook, Reddit, Digg, Youtube and others. The campaign ran for 3 days.
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2. Attach a simple tag at the bottom of every free message sent out: "Get your private, free email at http://www.hotmail.com" and, 3. Then stand back while people e-mail to their own network of friends and associates, 4. Who see the message, sign up for their own free email service, and then 5. Propel the message still wider to their own ever-increasing circles of friends and associates. Like tiny waves spreading ever farther from a single pebble dropped into a pond, a carefully designed viral marketing strategy ripples outward extremely rapidly.
communication has become so easy and inexpensive. Digital format make copying simple. Scales easily from small to very large : To spread like wildfire the transmission method must be rapidly scalable from small to very large. Exploits common motivations and behaviors : Clever viral marketing plans take advantage of common human motivations. Design a marketing strategy that builds on common motivations and behaviors for its transmission, and you have a winner.
Elements of a Viral Marketing Strategy Some viral marketing strategies work better than others, and few work as well as the simple Hotmail.com strategy. A viral marketing strategy need not contain all these elements, but the more elements it embraces, the more powerful the results are likely to be. An effective viral marketing strategy:
Utilizes existing communication networks : Network marketers have long understood the power of these human networks, both the strong, close networks as well as the weaker networked relationships. People on the Internet develop networks of relationships, too. They collect e-mail addresses and favorite website URLs. Affiliate programs exploit such networks, as do permission e-mail lists. Takes advantage of others' resources : The most creative viral marketing plans use others' resources to get the word out. Affiliate programs, for example, place text or graphic links on others' websites. Authors who give away free articles, seek to position their articles on others' webpages.
Gives away products or services: "Free" is the most powerful word in a marketer's vocabulary. Most viral marketing programs give away valuable products or services to attract attention. Free e-mail services, free information, free "cool" buttons, free software programs that perform powerful functions. Provides for effortless transfer to others: Viruses only spread when they're easy to transmit. The medium that carries your marketing message must be easy to transfer and replicate: e-mail, website, graphic, software download. Viral marketing works famously on the Internet because instant
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Brands have been trying to get their heads around as to what message goes viral and what does not. There have been instances when a message or a video has gone viral and then has been approached by the brand to take it up.
and for this your friends must have a Facebook account too. You then viral-market the idea of Facebook to your friends and then finally join it and re initiate a similar chain of events. In this way by using viral marketing Facebook with around 800 million users is now the third largest group in the world in terms of number.(first two being China and India). With the internet penetration getting deeper, viral marketing is further expected to accelerate the change it has induced in various fields. More and more companies are now having a greater percentage of their budget dedicated to social media and viral marketing efforts, politicians are launching viral campaigns to win floating votes, use of viral media for social awareness are amongst the many examples highlighting the virulent growth of this old concept. The future of this concept is promising and also exciting. Let‘s see how Viral Marketing evolves further.
A good example was the ―Dancing Matt‖ phenomenon, who was then approached by Visa to be used in their campaigns globally. Matt video was an ideal fit for Visa, as Matt shot himself to fame by dancing at all famous locations worldwide. The campaign was named as the ‗Travel Happy‘ campaign and was targeted at the global traveler. Infact the rise of social media and internet is itself one of the examples of successful viralcampaign. Consider Facebook, you upload your picture on Facebook and feel happy about it.But this doesn‘t satiates your desire to be more popular. Now you want your friends to see the picture that you had added
Ankit Devangbhai Shah MBA(IB) 2011-13 Indian Institute of Foreign Trade
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Prashant Navin Gupta MBA(IB) 2011-13 Indian Institute of Foreign Trade
MARKETING FIASCO HONDA ACCORD HYBRID Honda‘s decision to place a hybrid system in the V-6 version of the Accord, rather than the more fuel-efficient four-cylinder vehicle, was a critical error. That decision—to use hybridi-
The cancellation of the Honda Accord hybrid by the Japanese automaker announced in the year 2007 was recorded as one of the most spectacular marketing failures of the last five years. Honda announced that the new Accord, due in year 2008, wouldn‘t have a hybrid version. The reason was simple. The one it had been trying to sell had been a flop. But why? In that environment, not being able to sell a gaselectric hybrid would take real talent and effort. The Toyota Prius had sold 77, 000 in the U.S in just the first five months of that year. Honda, meantime, had sold only 1700 Accord hybrids and 13,900 Civic hybrids. Ford had sold just 9,252 Escape hybrids. The Accord Hybrid featured the company‘s third-generation electric assist drive-train matched with a modified version of the V6 that had cylinder deactivation technology. With 253 hp and 232 lb-ft of torque, it‘s the most powerful Accord in the line-up. The hybrid system captured electrical energy during braking or deceleration and stored it in the vehicle‘s special battery pack. Also, the system featured the ability to shut off the engine during vehicle stops for further efficiency gains. The car‘s fuel economy was rated at 28 mpg city/35 mpg highway, which was similar to the fuel economy of the standard for-cylinder Accord. A couple of things. The engineers at Honda got carried away with rational thinking. They talked themselves into the idea that a load of people would be impressed with getting four cylinder fuel economy with six cylinder power. The typical Accord buyer was not that interested in horsepower. And to pay $9,000 more for the hybrid than the four-cylinder made sense to very few customers. Honda, in fact, was then discounting the Accord hybrid at $28,844, compared with an MSRP of $31,685.
Honda Accord Hybrid zation to offer greater performance rather than maximum fuel efficiency—came during the early days of the hybrid market. Honda took one on the chin for the entire hybrid market, learning a bitter lesson that hybrid buyers wanted fuel efficiency in a gas-electric vehicle. Unlike the Toyota Prius, a runaway hit because it striked the right balance between practicality, adequate performance and superior fuel efficiency, Honda erred with the Accord Hybrid by falling below hybrid-level fuel economy levels and with the Insight because of impracticality.
Honda thought that the car would sell itself since it got so much sales and showroom traffic for Accord sales anyway. The Accord had been the second best selling passenger car in the U.S. for that time. That was just lazy thinking. Honda, Ford and Saturn had all been making the same mistake when it came to selling hybrids. It‘s the ―doy‖ factory, as they would call it. Toyota established the marketing model, yet no one seemed prepared to follow it. Toyota gave the Prius a unique design
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and a unique name. Those things gave the gas -electric hybrid buyers the identity with the hybrid and doing good and green that they were looking for. The Prius became a badge for driving green like how BMW was a badge for success and a Ford F150 stood for Texas toughness. As stated in Mercury news :- "The cancellation of the Honda Accord hybrid points out the fact that hybrid manufacturers have largely been unable to expand the public's perception of hybrids beyond high fuel economy." Honda did no discernible marketing or public relations promotion for the Accord hybrid. It‘s not easy distinguishing any of the hybrids in the market from the Toyota Prius. But this was a disaster. Honda needed to review all of its marketing. There was a time when Honda did sensational, sharply executed, artful advertising in the U.S. But it was taking an unnecessary drubbing from Toyota, which had dramatically out-performed Honda on profits, marketing and PR, and overall market momentum. Honda, simply put, needed to put a jolt of electricity into its whole marketing effort.
Toyota Prius
Ashwin Nakshatri MBA(IB) 2011-13 Indian Institute of Foreign Trade
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MARKETING TERMS EXPOSED BREAKTHROUGH MARKETING: A breakthrough concept that drives the solution to a specific (set of) objectives, challenges or market needs, and which also works to support, enhance and forward a company's mission or brand's position for long-term competitive gain. e.g. TATA ACE
GUERRILLA MARKETING: Guerrilla warfare consists of waging small and intermittent attacks to harass and demoralize the opponent and eventually secure permanent footholds. Guerrilla marketing generally uses unconventional means such as graffiti, sticker bombing, flash mobs etc. often in a localized fashion, to convey or promote a product or idea. E.g. Nikon, Discovery Channel
Kill Bill Guerilla Marketing
Nikon Guerilla Makreting
BUZZ MARKETING: Marketing buzz or simply buzz — a term used in word-of-mouth marketing — is the interaction of consumers and users of a product or service which serves to amplify the original marketing message. A vague but positive association, excitement, or anticipation about a product or service. The term refers both to the execution of the marketing technique, and the resulting goodwill that is created. Examples of products with strong marketing buzz upon introduction were Harry Potter, the Volkswagen New Beetle etc.
RELATIONSHIP MARKETING: Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions As a practice, relationship marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages. E.g. IKEA.
NICHE MARKETING: Marketing adapted to the needs, wishes and expectations of small, precisely defined groups of individuals. A form of market segmentation, but aimed at very small segments. Niche marketing characteristically uses selective media. E.g.Magazine Soho which targets only small office and home-office workers.
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ROAS: ROAS is often used when discussing pay per click methods of online advertising. It stands for return on advertising spend. It represents the dollars earned per dollars spent. Formula for ROAS: Revenue / Cost = ROAS
JINGLE: A short song, usually mentioning a brand or product benefit, used in a commercial. Such jingles often become viral, as mobile ringtones, humming or any other mode and thus provide an identity for the product. E.g.– Nirma jingle, Airtel music
The Nirma Jingle Ad
LEAPFROGGING: A strategy aimed at overtaking your competition and creating the future shape of the industry. The gaming industry holds many examples of leapfrogging technology.
RECENCY: A term for how recent a person has bought from your company. It is well established that people who have bought most recently are more likely to buy from you again on your next promotion.
SURROUND SESSION: Advertising sequence in which a visitor receives ads from one advertiser throughout an entire site visit.
Sahil Asesh Mishra MBA(IB) 2011-13 Indian Institute of Foreign Trade
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Manish Jain MBA(IB) 2011-13 Indian Institute of Foreign Trade
OUT-OF-THE-WORLD MARKETING IDEAS Also, a fake online game called “Mass:We Pray” was advertised. When attempting to order the game, the website condemns you as a Heretic, plays a trailer for the game(with a link to buy it, of course) and also provides you a link for the Facebook application “Go To Hell”, where players get to condemn their friends to different punishments in Hell. EA also sent out $200 cheques to select videogame critics with a letter which said that by not cashing the cheque, they succumb to avarice, while by cashing it, they fall prey to prodigality, thus implying how Greed is a two— headed beast. Such an elaborate and well-thought out campaign truly delivered because it sought not
Product Name: Dante’s Inferno Product Type: Video Game Company: Electronic Arts(Publisher), Visceral Games(Developer) Dante‘s Inferno is a third-person actionadventure game with a storyline regarding the exploits of Dante as he journeys through the Nine Circles of Hell (namely, Limbo, Lust, Gluttony, Avarice, Wrath, Heresy, Violence, Fraud and Treachery) to reclaim the soul of his beloved Beatrice. Before release, the game underwent a very elaborately designed marketing campaign which sought to involve people into the storyline by making them aware of their own interactions with the nine circles. For example, EA sent a series of packages to Playstation:The Official Magazine. The package contained a small wooden box, which when opened, played the song “Never Gonna Give You Up” by Ricky Astley. The music could not be stopped by any means other than to break the box with the hammer provided. Upon breaking it, a note would reveal that the destroyer had given in to Wrath and thus is condemned to one of the Nine Circles. Similarly, a secretly fake commercial for the fictional company “Hawk Panther” was released, wherein people were told to visit the Hawk Panther website to steal their best friend‘s girlfriend. Upon clicking the link to visit the site, a message would appear saying ―Treachery‖ and that the person who clicked is condemned to the Ninth Circle. It would then show a trailer of the game along-with a link to buy it.
just to tell the potential player about the game, but also how the game‘s storyline had visibility even in their real lives. The game not only received favourable responses, but also managed to generate a wide fanfollowing.
Sidharth Nanda MBA(IB) 2011-13 Indian Institute of Foreign Trade
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PRODUCT LAUNCHPAD
PRODUCT: STOP NOT COMPANY: PERFETTI VAN MELLE SECTOR: FMCG Perfetti Van Melle India, market leaders in the Indian confectionery industry with brands like Alpenliebe, Center Fresh, Mentos and Happydent, made their entry into the Salty Snacks business with the launch of ‗STOP NOT‘ range of snacks. The Indian subsidiary of the international confectionery major, Perfetti Van Melle S.p.A, a multinational having a wide product range of gums, candies, chewies and lollipops, is the first country in the Perfetti Van Melle group to take this major step to diversify its product portfolio to include ready to eat, packaged salty snacks. Known for its innovation in marketing campaigns, distribution & product development, PVMI enters snacks segment with an innovative filled and non-fried product for the first time in India. Stop Not is a completely indigenously developed extruded snack and will be available to the consumer in two formats - Stop Not ‗Fofos‘ and Stop Not ‗Golz‘. Stop Not ‗Fofos‘ is a unique filled and nonfried product and is available in Happy Tomato and Mad Masala flavours. Stop Not ‗Golz‘ on the other hand is a crunchy fried ring available in Peppy Tomato and Full Masala flavours. Stop Not variants have been developed by combining Indian food preferences with the most modern food processing technology. Speaking on this major diversification, Mr. Sameer Suneja, Managing Director, Perfetti Van Melle India, said, ―Salty snacks is a very exciting & challenging category to be in. The category has seen lot of action in the last couple of years and has huge potential to grow. We will leverage our marketing & distribution strength to provide differentiated product offerings to delight the consumer like we have done in the confectionery segment. We are proud to be the first Perfetti Van Melle subsidiary to earn a mandate to go beyond confectionery. PRODUCT: VODAFONE BLUE COMPANY: VODAFONE SECTOR: TELECOM Vodafone Blue allows you to easily share and stay connected with your friends anytime, anywhere. The F (Facebook) button on the Vodafone Blue handset lets the user upload pictures, visit profiles and update status at a single click. You can also customize the Facebook ‗F‘ button and assign a number of tasks, including instantly posting a status update with photos from the gallery or with links from the browser.
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Vodafone Blue features a 2.4-inch (non-touch) QVGA display with 320 × 240 pixels resolution, 200 MHz MediaTek processor, QWERTY keypad, Bluetooth 2.1, GPRS/EDGE, 2 megapixel camera with LED flash, email client with POP3 and IMAP support, music player, Opera Mini browser, microSD card slot, 32 GB expandable memory, FM radio, 40MB internal memory, microUSB port, 3.5mm headphone jack and a 1000 mAh battery. You will also get free unlimited access to Facebook for a year, with the purchase of this handset.
PRODUCT: HORLICKS OATS COMPANY: GLAXO SMITH KLINE SECTOR: FMCG Gone are those days when people‘s rushed breakfast would consist of two slices of toast with a slice of cheese and a beverage. It is time to opt for healthier options and make a move towards fitness. The favourite health food drink brand ‗Horlicks‘ now also offers a healthy, wholesome breakfast option- Horlicks Oats. With the launch of the new product, the company, GlaxoSmithKline Consumer Healthcare (GSKCH) has entered the breakfast foods category in India and aims to fill in the need gap for consumers for whom nutrition takes a back seat at the breakfast table. Announcing the launch of Horlicks Oats, Jayant Singh-Marketing Director, GSKCH said, ―Today‘s lifestyle is giving rise to lot of lifestyle related diseases like hypertension, overweight & heart related diseases & doctors are also concerned with the same. Food & lifestyle changes are the key to a long term health & we, at GSK are committed to provide the right solutions to the consumers for their changing lifestyle & their nutrition needs. With this launch, we aim to spread the goodness of healthy living and complete the consumer food table by adding yet another nutritious/wholesome option to the menu.‖ Well suited for today‘s fast-paced life, Horlicks Oats provides a ‗3 Way Health Advantage‘ – helps manage weight, helps manage healthy blood pressure and helps reduce cholesterol. The company‘s latest offering comes with the trust of the mother brand Horlicks and backing of Horlicks Nutrition Academy.
Prashant Sishodia MBA(IB) 2011-13 Indian Institute of Foreign Trade
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AD-MAKING COMPEITION BROOKE-BOND TAJ MAHAL GREEN TEA Winner: Vinay Singh & Akanksha Raje (KJ Somaiya Institute of Management Studies and Research) Congratulations !! You receive a cash prize of Rs. 500.
HONORARY MENTION: Mansi Patil
(KJ Somaiya Institute of Management Studies and Research)
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LIGHT HEADED CORNER
Answers will be published in the next issue. However, you may also refer to the Facebook page of Markmantra for the answers.
Laugh Till You Pop !!!
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