Issue Insight into the Latest Marketing Advances in the Industry
Aug’13
MarkMantra
FOREWORD
Team MarkMantra
Amar Budati
MarkMantra is the marketing magazine brought out by the students of IIFT, encompassing various dimensions of marketing and exploring horizons of this integral business function. Bringing 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 this team.
Edtor-in-Chief
This issue is being brought out during the month in which we celebrate our 67th Independence day. The theme of the magazine has been done up in the Indian tricolor to reflect the same fervor.
Palnika Hemnani Managing Editor
In this issue we present before you articles which have been drawn from a wide array of topics. Starting of from the emerging area of luxury concierge services, we also have articles on the marketing of services, brand activation, censoring of advertisements and a lot more in this issue of MarkMantra. We are always eager to hear in from our readers and incorporate their suggestions. You can reach out to us at:
Prachi Singh Co-Editor
https://www.facebook.com/IIFT.MarkMantra
iift.markmantra@gmail.com https://twitter.com/MarkMantra_IIFT
Happy Reading !! Navdeep Verma Online Coordinator
"The man who goes alone can start today; but he who travels with another must wait till that other is ready, and it may be a long time before they get off." — Henry David Thoreau , on Independence
CONTENTS
In the Lap of Luxury......................................................................................4 Senseless Censoring of Advertisements.......................................................6 At your Service!!...............................................................................................7 Brand Ambassadors: Death of Creativity?.................................................11 Brand RE-Incarnation...................................................................................12 Brand Activation: Enlivening the Brand Spirit..........................................15 Summer Internship Experience...................................................................19 Gone too common?.......................................................................................21 Mission House Hunting: Simplified............................................................23 Customerâ€&#x;s Customer.....................................................................................26
In the Lap of Luxury N
eed to have that latest limited
The net-worth of these households is estimated to surge five times from an estimated Rs 65 lakh crore in 2011-12 to Rs 318 lakh crore by 2016-17.
edition phone that was launched last week in London? Want to play a game of hide and seek in the desert with former MI-6 agents by your side? Or do you need sea-weeds from the Dead Sea for your nephew‟s science project? If all the above questions made you feel weird, the answer to them would make you sit up and take notice as the answer to all the
The word “Concierge” comes from French origins, it means caretaker of apartments or a hotel
above questions is an emphatic YES!! And there are specialty service providers who would get you all the above things and much more, for a price. They are called concierge services and they are slowly going about their business in India, though a common feature in the European and American markets; they are relatively new to the markets here. The dictionary defines concierge as a French caretaker of apartments or a hotel; lives on the premises and oversees people entering and leaving and handles mail and acts as janitor or porter. The term "concierge" evolved from the French Comte Des Cierges, The Keeper of the Candles, who tended to visiting nobles in castles of the medieval era. Though today a concierge doesn‟t strictly do what is defined in the lexicon, he helps you in planning and executing things that you always
wanted to do, no matter how difficult or seemingly impossible the task might be; all of it for the right price. These concierge services don‟t come cheap with prices starting at £1000 for basic services and going up to £38000 a year for more exclusive offerings. A joint study by Kotak Wealth Management and CRISIL has defined an ultra HNI as one having a minimum average net-worth of Rs 25 crore. According to the report, the ultra HNI tribe is set to zoom. Their number is estimated to have grown 30 per cent to around 81,000 in 2011-12, and is expected to treble to around 286,000 over the next five years. The net-worth of these households is estimated to surge five times from an estimated Rs 65 lakh crore in 2011-12 to Rs 318 lakh crore by 2016-17. Impressive ain't it? Over 50 per cent of them are in the four metros, and the next top six cities account for around 12 per cent. Apparel and accessories top of the shopping list which is evident from a 50 per cent jump over last year. That is followed by vintage spirits, jewellery and precious stones and luxury watches. The primary driver for such growth has been a 200% increase in the number of HNIs (with more than $1 million in onshore liquid assets) since 2006. The total number of HNIs is expected to reach 132,000 in 2013. A report by Bain & Company also estimates there will be 1.1 million households with an annual disposable income over $100,000 in 2013, a 60% increase since 2006.
The biggest factor for this splurging is the psychographic need of an individual to showoff one's wealth as a form of status symbol, the liberalization of the Indian economy in the early 1990's spawned a large number of businesses and entrepreneurs whose moment in the sun has arrived now, two decades later and they are not backing off; not even in face of the slowdown fears that have been doing rounds in the markets post-2008. And this
During the 1930’s India accounted for 20% sales of Rolls Royce’s globally.
new generation of luxury spenders has given rise to exclusive luxury concierge services, an offering that was alien to India till 2000. The Indian fetish for luxury goods goes a long way back, erstwhile Maharaja‟s were well known for their largesse towards Rolls Royce cars, Cartier watches, custom-made trunks from Louis Vuitton. During the 1930‟s India accounted for 20% sales of Rolls Royce‟s globally. But post-independence the luxury market as such didn‟t have any presence here, however that is changing as outlined by the figures in the earlier part of the article. The products preferred by the elite are diverse and it goes without saying highly exclusive. A certain brand of car is preferred over another, due to its exclusivity factor. People also tend to show a propensity for goods that are more portable like handbags, the underlying rea-
son being that one can show it off at the next big party while the same cannot be said for a private yacht!! The concierge services are also going the extra-mile for gaining customers as competition picks up in this niche segment. Most luxury hotels have an arrangement with a concierge service to take care of the needs of their guests who may desire anything exclusive. The concierge services club has also caught up with real-estate offerings. Swimming pool, club houses, gyms have become a common feature of all upscale apartments, to differentiate themselves from the pack builders like Lodha, Nitesh Estates offer concierge services for a certain period as a complimentary service bundled together with their ultra modern, super luxurious condominiums in different locations across India. These services would continue if the resident chooses to continue, only that he would be paying for it. Concierge services have a high degree of customization and exclusivity built into them inherently as that is their primary offering. Some of the services like AmEx‟s Platinum Concierge Service are open only by invitation which increases its snob value and with an annual charge of Rs.50,000 they don‟t come cheap either, but the good news is that nobody seems to mind paying such fee for a little bit of pampering. Though corporates still continue to be a significant user of this services for their top managerial executives, but private individuals are slowly warming up to the idea of availing this service; which is set to grow only bigger in the days to come. The picture for the moment looks rosy for this sector but the fact that still a significant number of Indian‟s struggle with malnutrition and poverty, with gap between the rich and the poor growing by the day; the scope for a debate on this wide.
Amar Budati MBA (IB) 2012-14 IIFT
SENSELESS CENSORING OF ADVERTISEMENTS Advertisements are promotional tools used by any organization to spread awareness about their products. Censoring is done to maintain the quality of the advertisements. It is expected that companies would adhere by the cultural and ethical value of the society they are showcasing the advertisement in. It is when the advertisements cross an arbitrary line that censoring is required. It happens at times that an advertisement is offensive to a culture, class or gender. This is when the censoring plays an extremely important role in preventing companies from toeing the line and having a negative influence on society. But the censoring has to be judicious and has to keep in mind the progressive mindset of people of this day and age. These days it is often seen that censoring is done by whims and fancies of the concerned people. Censoring should not just be used as a tool to wield unrequited power and influence. It is often seen in advertisements that swear words are censored despite them being aired at nonprime times. It is absurd that such censoring be done today where such language can be heard in a common manâ€&#x;s language. There was an advertisement by United Colors of Benetton of world leaders kissing each other as a symbol of love and connect in an endeavour to bring all the people of this world together. This advertisement campaign had pictures of Barack Obama kissing Hugo Chavez and Hu Jintao. The reaction to this advertisement by the American government was so dismissive that the campaign was immediately withdrawn. It was important to look into the message conveyed instead of the specifics. Another interesting phenomenon pertaining to censorship is the Streisand Effect whereby strategies employed in hiding or censoring a
product/advertisement/information often backfire and; on the contrary, lead to its unintended publicity. This is named after Barbara Streisand, whose attempts at suppressing the photographs of her house in Malibu,California in turn led to more publicity of those photos. So, at times senselessly censoring might eventually result in that particular advertisement going viral. Facebook went one step in their latest example of senseless censoring. Nirvana in celebrating the twentieth century of their platinum album Nevermind put up the original album cover of the album on their official Facebook account. The album cover featured a three-month-old something toddler swimming naked in the pool; a sight that parents of these new-borns see every day. However the photo was taken down and the account was sent a notice by Facebook. It stated, "Facebook does not allow photos that attack an individual or group, or that contain nudity, drug use, violence or other violations of the Terms of Use�. It is as if Facebook is trying to tell the future parents that the life changing moment when they would first see their new born would be completely offensive. Even though the policy is in the right place it is the execution which must be checked. This is why senseless censoring should be avoided. Meenakshi Deshpande MBA (IB) 2013-15 IIFT Deepinder Singh Binner MBA (IB) 2013-15 IIFT
At your Service!! T
Tangible features attached with services such as Facility location, layout design and personnel delivering services.
Responsiveness of Employees who maintains both indirect and direct contact with consumers during service delivery.
Ability to provide services accurately and in timely manner
Individual attention to customers and empathy in responding them
Services delivery personnel knowledge about the overall delivery system
he Services can be defined as activities which
cannot be inventoried, whose final product is intangible along with some ancillary tangible products. Intensity of service varies from situation to situation (heterogeneity) depending upon the level of interference from end consumer. The Main Objectives of service providers can be listed as consultancy, experience, convenience, knowledge, expertise. In most of the cases the services are provided for limited duration but its benefits lasts long. Other Distinguished characteristics of services are Intangible offerings, simultaneity in production and consumption. Services are difficult to get patented. Operation in Service sector differs greatly in comparison to manufacturing operation. Customer interference is generally high during generation of services whereas it is very low in manufacturing business. Services come under the category of low capital and high labor intensive operation. Measurement of Process quality and its rectification is difficult in comparison to manufacturing. Marketing Aspects of Services
Demonstration of services poses a challenge as one has to purchase it to acquire knowledge about its stated benefits.
Direct Customer contact is a necessary component of services sector
Needs significant efforts in decisions related to facility location & layout designs
Quality standards are difficult to quantify as level of satisfaction differs from consumer to consumer.
Automation of services is a challenging task Example- Gourmet Restaurants, Hairdressing
Production and Consumption facilities are located adjacent to each other
Although difficult, Service quality can be measure under following parameters:
Service Marketing Triangle Service marketing activities can be divided in to three different segments: Marketing Activity by Management performed on Customers i.e. mentioning the value propositions that the management aspires to delivers to the customers also termed as External Marketing Marketing Activities performed on Employees i.e. informing the employees about management‟s aspirations towards delivering benefits to consumers and their (delivery personnel) responsibility in providing them. It is also termed as Internal Marketing Marketing Activities by Employees on Customers i.e. marketing of the promised propositions to end consumers effectively during service delivery. It is termed as Interactive Marketing These three activities primarily targets the following aspects of service
What all propositions to be promoted and by whom
Who‟s going to deliver it and how it will be delivered
required in promotion, distribution expenses and the profit margin. However, in case of services since people forms the most essential part of service delivery there is high cost of labor and overhead expense. Thus, a restaurant not only has to charge for the cost of the food served but also has to calculate a price for the ambience provided and service charge of the waiter.
Whether the supporting system for providing services are reliable or not
In order to cover the complete aspect of Marketing of Services, The marketing mix can be extended to 7Ps Product: In case of services, the „product‟ has intangible and tangible aspect, perishable, difficult to standardize and its production and consumption are difficult to isolate from each other. Hence, there is scope for customizing the „product‟ as per customer requirements and needs. However, too much customization would make it difficult to standardize the service delivery and make it difficult to assess the quality of service provided. Hence, special care is needed while designing the service delivery offering. Pricing: Pricing of services is more complex than pricing of goods. The prices of goods can be easily set by factoring the cost of raw materials required, efforts
Place: Service delivery location is concurrent with its production because it cannot be stored or transported. Hence, service providers have to take special care while choosing the location where the service would be provided. Thus, a fine dine restaurant is better located in a busy, upscale place as against on the outskirts of a city. Similarly, a holiday resort is better situated in the countryside away from the rush and noise of a city. Promotion: In a service sector, promotion is a crucial differentiating factor when service itself is not differentiated offering by the service provider. Example, the mobile telephone services where every operator offer almost similar services, but there communication/ promotion varies to attract different sets of customers. Hence, service providers invest heavily in advertising their services. We now look at the 3 additional elements of the services marketing mix - people, process and physical evidence - which are unique to the marketing of services.
People: People are the defining elements in a service delivery process and in several cases it forms an inseparable part of the service. Thus, an airline service provider such as Southwest airlines is known as much for its services as for its staff. The same is true of banks and department stores. Consequently, customer service training for staff has become a top priority for many organizations today for example Ritz-Carlton hotel chain spends 100 hours of training annually for every employee. Process: The process of service delivery is crucial since it ensures that the standardized service delivery to its customers. Hence, most companies have a service blue print which provides the details of the entire service delivery process with performance indicators. This essentially helps the service providers to identify and eliminate any kind of slack in the process. Physical Evidence: Services have an intangible and an intangible components in most cases. Service providers often incorporate more tangible elements in their offering to enhance customer experience. Thus, hair salons have well designed waiting areas often magazines and plush sofas for patrons to read and relax while they await their turn. Similarly, restaurants invest heavily in their interior design and decorations to offer a tangible and unique experience to their guests. In order to understand what causes customers to switch between different service providers, let us look as some factors involved:
Inconvenience can be caused by many factors such as location of facilities and the time one takes to reach the location. The availability of appointments and customer waiting time for getting served
Ineffective Services such as not meeting the service levels advertised to the
consumer, errors in billing.
Service encounter failures such as unresponsiveness of service delivery personnel, lack of knowledge about consumer deliverables, uncaring nature and less synchronization between different delivery functions.
High or Unfair pricing of services/ancillary products and unreasonable price rise may cause even the loyalist of the customers to switch service providers.
Management little or no responses towards service failures and associated complaints from consumers
Highly competitive offerings from other service providers may persuade consumers to switch brands
Ethical issues in delivering services such as vested interest of service providers, hard selling and cheating consumers for their benefits by delivering below expectation services
Complexity in acquiring service benefits, less customer friendly process and system design can also dissuade consumers to look for alternatives
Managing quality in services means to identify gaps that cause unsuccessful delivery of service. Service quality model as proposed by A. Parasuraman, Valarie A. Zeithami and Leonard L. Berry in their paper “A conceptual service quality and its implications for future research” (Journal of Marketing, Fall 1985) helps us identify there are five possible gaps that could exist in service delivery which is as follows: 1. Difference in customer expectation and management perception occurs when customer sets expectations that are not in line with the management goals of service delivery. 2. Difference exists when the management set service quality measurements/standards, which are either ambiguous or difficult to assess. 3.
The difference between service quality standards and service delivery exist when the employees are either poorly trained, incapable or are unwilling to comply with the set standards.
4. Difference between the service delivery and external communication exist when communication from employees misrepresents the services delivered by the organization. 5.
Adequate training and motivations (through rewards and recognitions) should be provided to the employees to ensure better service delivery
Constantly take constructive feedback from the customers to align the service delivery goals with customer expectations
Review the external communication strategy periodically to manage and set the customer expectation right
Train mangers to identify and set performance indicators intelligently and also these should be communicated to the employees so that these targets could be achieved. Some performance indicators that can be used to measure service quality levels are reliability, responsiveness, assurance, empathy & tangibles benefits.
Satyendra Kumar B IIM Lucknow
This difference exists when the external communication set incorrect customer expectation about the service that the company will deliver. Sandip Murmu
In order to counter these gaps the service delivery organization must undertake the following steps to ensure better customer:
IIM Lucknow
Q4) This shoe tycoon's visiting cards carry the title 'Senior Shoe Salesman'. Name the person referred to. Q1)Which automobile brand's logo comes from the moving propellers of an aircraft? Q2)This automotive brand got its name from the motion caused by its parent company's main products. Q3) Kia Motors was a large automobile manufacturer in Korea until taken over in the 1990s. Which company owns it now?
Q5)Which product was "99.44% pure, it floats"? Answers on Page 18 :-)
advertised
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“If your sales are falling, get Amitabh Bachchan” seems to be the mantra of all mantras. There is something so simian about the brand ambassador concept that the whole phenomenon deserves microscopic examination. Fairly recently Hyundai the Korean car giant launched a novel marketing campaign. Tell your i10 story campaign was part of the crowd-sourcing effort of Hyundai inviting readers to share their stories and win a chance to feature in a commercial with their long time ambassador, Shahrukh khan. Co-creative and engaging? Yes. But there is a flipside Celebrities are also humans made of flesh, blood and bone and if every time someone‟s father turned into SRK on entering a Hyundai i10, utter confusion will reign. Besides, the target segment, in this case hardworking, 9 to 5, 30 something fathers would want to drop their sons to school all by themselves rather than transform into SRK. Besides the content the bigger question is: Does the ambassador in this case connect with his target audience. Does he create the right positioning in the minds of the Indian IT male types? Does he invoke association and aspiration anymore? Or is it a classic case of ctrl c, ctrl v? Is it not a rather “meh” attempt at advertising? Hyundai i10 (much like SRK) has been around for years and as such people know what is on offer. And while SRK has in the past successfully led many ad campaigns for Hyundai (more in line with his image as a romantic hero) this one in particular looks like case of not prioritizing while creating the marketing mix. What Hyundai seems to have failed to grasp is that for every child his father is a hero. Besides any mention of the new “next gen” i10′s features or qualities was completely absent which conveys the lack of a new value preposition. The impact on the end customer is questionable. Top notch celebrities like khan and bacchan also endorse a basket of other
products from high end watches to male grooming products and beverages and this dilutes the novelty of their endorsement. Then there is the curious case of the celebrity overshadowing the brand itself. The vampire effect was highlighted when 80% of the users associated Amitabh with Asian paints when he was actually pitching for Nerolac. In the words of David Ogilvy “Every advertisement should be thought of as a contribution to the complex symbol which is the brand image”. Therefore the link between the ambassador‟s image and the message is a must for successful positioning of the brand by the ambassador. The long and short of it is that the ambassador pill has to be taken with due caution as its no panacea anymore. Consumers nowadays understand marketing. They know why a select few faces turn up every 10 seconds on their screens. The realization that celebrities are being paid a lot of money for endorsements makes them cynical. In the social media era consumers are also being constantly bombarded with celebrity messages and as such a fatigue creeps in. That‟s why messages which connect on an emotional plane work much better and an ambassador which stands for what is being delivered is a must. Matter of fact it‟s time to realize that we don‟t necessarily need ambassadors. That we can do much better in the ad world than pay to buy someone‟s image. Ambassadors are the means to an end, and not an end in themselves. Rishi Sen MBA (IB) 2013-15 IIFT Milind Kulshreshta MBA(IB) 2013-15 IIFT
“I give you this to take with you: Nothing remains as it was. If you know this, you can begin again, with pure joy in the uprooting.”- Judith Minty
T
he ups and downs of a business
By 1990’s Old Spice was associated with its aging customer base than anything else. In 2000 the company came out with Old Spice Red Zone and revamped its advertising campaigns, focusing on the younger generation.
cycle are known to everyone and regardless of that the same vagaries of business are feared and a constant endeavor exists in trying to look for ways to avoid them. Rather, businesses and brands should strive towards braving the impending storm and reviving themselves at the right time. Brands are created, nurtured, maintained and in a few situations- repositioned. Another approach that can be taken is of taking a brand which is dead and giving it a new lease of life. This is a perilous path to tread since the brand should appeal to the new generation of consumers and meet the expectations of the ones who still remember it. There are a few companies which are in the business of brand excavation and revival. We will see how these scientists of the business world have managed to come up with some beautiful recreations. Before we understand the process of re-creating a brand and study a few examples, it is critical to analyze why brands fail. The cause of most brand failures can be traced back to a few reasons. The most common bane is marketing myopia. At times a brand is too blinded by its success or buys itself a pair of blinkers and becomes una-
ware of the consumer‟s needs. Flipkart has come a long way from giving free delivery for Rs. 200 around one year back to Rs. 500 now. It has had to face losses and a lot of issues which made it go for the eBay model of operation. Myopia also leads to the brand becoming too snug on its perch and disregarding the market developments. The competitors catch up on these trends and race ahead just like how almost all camera brands boarded the digital bandwagon while Kodak got left behind. Sometimes a brand falters in its positioning and gets rejected by the consumers because it fails to connect culturally with them. Kellogg‟s made this error of judgement in India. Then there are brands which try to reinvent themselves without considering how attached people are to them. The prime case of this misjudgement is Pepsi, which came out with Pepsi Blue and Pepsi Atom, two drinks which got very bad feedback from the people. Such amnesia could have proved fatal
for a smaller brand. A few brands fall into the abyss of ego and deem themselves invincible. Nokia fell into this trap and will have to work very hard to recover its original position in the mobile phone market. With brands failing and digging their own grave left right and centre, the time is ripe for the brand invigorators to work their magic.
A new chain of small and medium scale companies have emerged of late that are involved exclusively in the business of revival of long lost brands. By acquiring a patent for as low as $275, these organizations buy the rights of a specific brand name and try to bank upon its brand heritage, customer recognition and historical relevance. Sound easy, right? But the process of identifying a brand and then reinventing, reinvigorating and repositioning that follows the acquisition is a herculean task and has proved to be a POD amongst these firms.
Bugatti completely bankrupt in the 1990’s until Volkswagen acquired it in 1998 and turned it around Also, the onus of creating and maintaining the standards set by now defunct brand is something that has to be handled with extra caution. In short, these organizations have to work extra hard to match the expectations of the older generation who have fond memories associated with the brand along with creating enough curiosity amongst the youngsters for whom this would be a new brand altogether. In a recent auction of retired brand names conducted by Racebrook Marketing Concepts, a New York based equity firm, the auctioneer managed to sell two dozen names in an event where people participated online as well. The total of the winning bids was estimated at $132,000. The highest bid, $45,000, was submitted for Shearson, followed by $32,500, for Meister Brau; and $30,000, for Handi-Wrap plastic wrap. The brand revival is also providing opportunity to young entrepreneurs to connect with the past and have a good
chance of achieving success in their re- RiverWest follows a three spective ventures. Gregg Hamerschlag, step process that includes chief executive at Primary Wave Media in identifying & acquiring, New York, claimed two names, Computincubating and re-launching er City and Financial Corporation of America for a bid of $1000 and sees a lot the brand. of opportunities for his I.P. A couple of firms that take keen interest in this sort of brand revival are RiverWest and Himmel Group. While RiverWest has been credited with the revival of brands like Eagle Snacks, Nuprin Analgesics, Rival Pet Food, Structure Apparel & Accessories, Himmel Group has Ovaltine, Cuticura Medicated Soap and Lavoris Mouthwash under its belt. RiverWest follows a three step process that includes identifying & acquiring, incubating and re-launching the brand. The first step involves extensive market Both Apple and Maybach research to narrow down into products can be cited as examples that the firm terms as “dormant”. A dormant product at RiverWest is defined that came back strongly as one that is out of use; small in volume and did exceedingly well and trending smaller or occasionally some that are struck in bankruptcy cases. The firm relies heavily on inside collaboration and interpersonal skills to carry out the acquisition process. It then focuses on acquiring the trademarks and copyrights, leaving the hard assets untouched. This is followed by brand revitalization wherein RiverWest backs the enterprise with considerable „seed capital‟ alongside „sweat equity‟. The firm also provides resources to carry out in-depth market research that would ultimately benefit the brand. The final and perhaps the most difficult process is the re-launch of the product wherein RiverWest provides world class creative and strategic support to the product that has increased substantially in value after the incubation process.
The Himmel Group, on the other hand, has a four step process that it follows rigorously in order to achieve the target. The step one is same for both companies but the modus operandi is visibly contrasting. While RiverWest believes in gathering inside information while targeting a defunct brand, Himmel Group follows a more consumer centric approach wherein they effectively deploy consumer research tools like Brand Research Cards questionnaires and on-line surveys to gather consumer feedback on every product.
The initial stages of marketing the product begin in as early as the second stage where the firm aims to create awareness about the brand by creating an advertising „hook‟. It is somewhat similar to a teaser where the firm drops a hint about the upcoming brand. The in-house advertising team produces such teasers thereby cutting down the advertising costs by a substantial amount. In some cases, even the firm‟s owner Mr Jeff Himmel writes the commercials himself. In the third stage, Himmel Group targets the POD of the brand and tries to create an emotional connect with consumers. Mr Him-
mels describes brands as his children who need to be nurtured. Ruthless advertising of the product culminates the entire process and regular checks are made to maintain the frequency of advertising on various channels including television, radio etc. In addition, regular research is conducted regarding the pricing, market share and brand loyalty of opposing brands. The most famous products that have risen from ashes would be Eagle Snacks and Ovaltine. Under the highly efficient leadership of „scavenger entrepreneur‟ Jeff Himmel, malted dairy drink Ovaltine has grown leaps and bounds. After buying the product from Sandoz Nutrition Corporation, Mr Himmel bombarded the television with advertisements dubbing the product as a “good-foryou drink that tastes great”. The product now has a $40 million hit turnover and commands 29% of the chocolate-drink-mix market, outperforming Hershey's syrup. Bringing back the mummified brands and repackaging them to suit current needs is no mean feat. Such restoration projects are not meant for the faint hearted. However, the challenge of doing so is unparalleled by any other branding issue.
Ambuj Gupta MBA (IB) 2013-15 IIFT
Sahil Jain MBA(IB) 2013-15 IIFT
Brand Activation
Enlivening the Brand Spirit
W
AKE THE BRAND UP!
Some famous activations: Coca Cola: The „Open Happiness‟ activation has touched the lives of many. Procter & Gamble Products: The „Thank You, Mom‟ campaign proved to be more than just a campaign.
G R A N D BRAND: In this era of cut throat competition, companies are striving hard to be as different as possible. Always a step ahead of the competitor is the rule of the game today.
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Brand Activation in simpler terms means to add life to a brand. This is not confined only to new brands which are to be launched, but it also takes into account the existing brands which need to be brought back to active presence in the market. For the market, brand activation means activating customers to make them aware about the brand. Activating customers implies stimulating their interest in the brand under consideration. If a brand is successful in cultivating interest then it can expect loyal customers in the long term. Quoting the brand strategists, Brand Activation is not a theory; it is a natural step in the evolution of brands. It is a way of looking at the greater possibilities within the brand. Brand activation can be done in several situations through medium such as products and services, employees, identity and communication. Planning for activation should start with focusing on the core competencies of the product. Next requirement is the customer data. The customer information can be collected by using several tools and techniques. Based on data collected, the activation plans are aligned towards the target customers. Following all creative ideas collected and worked upon by marketing executives of the company, the activation plan is implemented. NEED FOR SPIRIT - There is a need which triggers an action .Same is applicable for the brand activation process as well. When all the marketing activities are planned by the company, there is a basic necessity to just connect the brand with the people who can become the future potential customers. Advertising is the traditional way to communicate the brand offering to the audience, but in today‟s competitive world what matters is how different one is? How uniquely can a communication link be established with
the people? How effectively can an emotional bond be built between customer and the brand? This will help the brand in identifying customer groups to target for further promotions. The primary objective is to involve the audience and influence them to be inclined towards the product. With the changing trends in marketing arena, conventional methods are losing their charm. So building up a customer base by attracting them towards a long lasting commitment has been the action in the industry in the last few years. This in fact, is a strategy being put into action for better results in the future. BATTLE OF BRANDS – The industry has witnessed several attempts by various brands who have taken the medium of brand activation as part of their product promotions. The most popular brands of the world today, have reached the peak of success because they have been successful in keeping their customers engaged with their brand offering and activities. Some very popular activation campaigns which most of all can remember and relate to are the following: Nestle’s Maggi: Me and Meri Maggi campaign is one of the very successful campaigns by Nestle, this has captured the hearts and minds of many. This has also resulted in maintain a strong customer base. People were made feel important by letting them share their own Maggi experience or special moments with the world. This built a bridge of emotional elements wherein an individual was not only excited to share with others how special Maggi is
not anxiety. That was a striking idea which instantly appealed the consumers. This included several activities ranging from advertisements, videos to events.
for her at a personal level ,but also develop a sense of attachment with the brand. The Guess The taste campaign by Maggi was also an effective way of engaging the customers. Procter & Gamble Products: The „Thank You, Mom‟ campaign proved to be more than just a campaign. It struck a chord with the customers immediately. P&G had also launched the 'Fulfill Her Wish' drive in India
and invited consumers to confide in it their mother's wish. The company pledged to fulfill the wish by Mother's Day. This was essentially a way to bond emotionally. Relationships were the social norm which was used as a facilitator by P&G for its activation drive. Unilever’s Dove: The Dove Campaign for Real Beauty was a huge success among the women as it aimed at creating a world where beauty is a source of confidence and
Coca Cola: The „Open Happiness‟ activation has touched the lives of many. This campaign just conveys the message of enjoying life‟s simple pleasures. This connected well with the audience because of emotional touch, good music and the happiness quotient! Coke‟s Small World Machines have also been in the news for having an impact on many consumers due to its unique and innovative attempt of trying to connect people who are divided by boundaries.
ITC’s Classmate: „Classmate Man of the Match‟ initiative was a good way of engaging with students and the young population. It allowed the target customers to earn 'runs' or points on buying Classmate stationery products. These points were later used for availing prizes and other experiences. So, in a way it activated the sales of Classmate products. It also used the digital medium of social media to reach to its audience. GRAND BRAND: In this era of cut throat competition, companies are striving hard to be as different as possible. Always a step ahead of the competitor is the rule of the game today. All efforts are put into making the brand grand in all aspects starting from
making the customers aware till driving the amount of sales. The traditional ways of marketing communication
are not sufficient anymore. The non traditional methods are the drivers of brand popularity these days. These are called Below the Line activities. Brand Activation belongs to BTL. The thumb rule here is to think out of the box. Activation campaigns in shopping malls, streets, residential colonies are being used by many brands. Campus launches, creative contests, interesting offers are also some other channels of activating a brand. Any of these, when leveraged upon by a unique concept will draw the customers towards the brand. The essence of every activity is that it should be streamlined towards the primary objective of stimulating interest in the minds of the customers for the brand. The big brands like Coke, Microsoft, Nestle, ITC etc have maintained their customer base because they have been continuously creating ways to captivate the customerâ€&#x;s interest. Brand Activation has crept into various industries. Considering the entertainment industry, it is often seen these days that before the launch of a movie or a music album the crew members of the project are visiting
malls with fun and exciting games for promotion. People come to know easily about the movies and they get to meet the starts and singers which is altogether a delightful experience. The latent objective being, more and more number of people will watch the movie when released. Itâ€&#x;s all about how striking is the brandâ€&#x;s communication strategy. BRAND-AID: How will Brand Activation help? Building a reputation in the market is not easy, losing it is! Hence maintaining the brand image after activating it should be given equal importance. A good beginning always leads to better results. So the Brand Activation plan should be an easy one which the audience can understand and relate to, thus helping in proper execution of the activity. Activation helps a brand for its better positioning in the market, improves interaction with the customers, and enhances the brand salience, which eventually leads to triggering better sales of the product. A TAKE ON FUTURE: Brand Activation has
evolved a lot in the last decade. „Consumer Experience‟ is what the marketers are targeting. The channels of marketing communication are increasing day by day. It is expected to witness several innovations in this domain of marketing. Brand Activation is gradually taking an integration approach of combining online media, mobile services and Word of mouth to create better awareness among customers, provide them with delightful experiences thus directing the brand towards better results. Nowadays road shows, exhibitions, college fun games have become very common. Repetitive activities lessen the interest of the people in a brand. The need of the present is to explore other means of activating a brand which should proved the customer with a never before experience. The future is going to be extremely competitive and hence companies should orient their focus towards research and innovation to survive the storm. “ON” IS THE “IN” THING: As the customers believe in experiencing than just purchasing a product, it has become a priority for the companies to make their offering presented to the customer in a unique manner which the customer will remember for a long time. Switching On the brand by means of Brand Activation is truly a driver of suc-
ANS
cess of a brand. As it has been rightly said, YOUR BRAND IS NOT WHAT YOU SAY IT IS, IT IS WHAT PEOPLE SAY IT IS. RATHER, WHAT PEOPLE FEEL IT IS.
Swetali Kar XIMB
WER
S 7-Eleven gets its name from the store's. extended hours—7 a.m. until 11 p.m., seven days a week
Anything and Whatever are the names of two soft drinks made and distributed in Singapore, by the company Out of the Box Pte Ltd. The drinks have a unique packaging concept such that every beverage has a generic design, with no way of telling what flavour is contained in the can. This prevents the consumers from being aware of the flavour of the purchased beverage until they drink it. Did you know that India's first-ever free internet service provider was Caltiger.com, which started operations in 1999
A5) Ivory Soap A4) Thomas Bata A3) Hyundai A2)Volvo, the parent company is SKF which makes ball bearings, which revolve. Volvo means "I roll" in Latin, conjugated from "volvere", in relation to ball bearings. A1) BMW Answers to Quiz Time:
Mr.Sameer Suneja, CEO-Elect, Perfetti Van Melle
As India celebrates the rise of another Indian to the top position in a global company providing products across 150 countries, a smile mystically appears on my face too. The news of Mr. Sameer Suneja rising to the post of Global CEO at Perfetti van Melle is one that excites everyone. And it excites me doubly as I was a part of the same organization, albeit only for two months. I did my summer internship at Perfetti van Melle India Ltd., the world‟s third largest confectionery manufacturer behind Kraft Foods and Mars, from April to June this year. The company, which engulfs popular brands like CenterFresh, Alpenliebe, Mentos, Happydent and Big Babol, is strikingly popular amongst FMCG brands because of its strong distribution network and use of witty advertisements, leading to a high brand recall. My tryst with PVMI began last year as I sat through their different process for summer internship. Five months and a form filling later, I was allocated PVMI‟s North branch for reporting. The first day at PVMI‟s North Regional office is still etched vividly in the memory. As I sat with contemporaries from other top B-schools in the country [there were 12 of us allocated to North branch], the feeling of awe and excitement felt overwhelming. The gravity of interning, that too in the sales division of an organization famous for its sales and distribution, dawns the most when you are sitting in that conference room, listening in rapt attention to the experiences and facts that are being presented in the orientation session. That‟s when I realised the legacy and intensity of work will be much more than I had perceived before coming to PVMI. And within some time, I had my project in front of me. To tell you in brief, my project required the following tasks to be performed in rural Punjab Understanding the sales process and call styles followed in rural
Punjab Working with PSRs and identifying key issues in their processes and suggestions for improvement in the same context Travelling to new towns/villages to identify market potential and prospective distributors Creating a roadmap for rural expansion across the state Competitor analysis and identification of their presence across the state Suggesting changes to distribution channels if required and feasible at some towns With the name of Punjab, the first images that lighten up in the mind would be the green mustard fields, the jolly Sikh community and the desi ghee food preparations. But the truth of the internship was far away from all these alluring imaginations. The insane amount of travelling and the understated amount of heat were part of the reality I encountered. But Punjabi cuisine was a life saviour; the body which was bludgeoned by the travel used to get re-energized as soon as the tasteful Punjabi food entered my belly. Under the mentorship of Punjab Area Sales Manager, I began the first phase of my internship – travelling with the PVMI rural sales officers {DSEs} and Sales representatives {PSRs} in order to understand the nitty gritty of the PVMI sales processes. My itinerary for the first phase of the internship was collaborated in sync with the DSEs and PSRs. During the next three works, I had worked with both the rural DSEs and 10 PSRs in Punjab, understood the call process {even made sales calls in some shops myself}, identified key issues subdistributors faced in rural towns, witnessed the live appointment of a subDistributor, outlined the role of superstockists, observed PSR efficiencies, identified the presence and process of
of distribution followed by PVMI competitors. The first phase of internship included travel to 14 towns/villages across 8 districts of Punjab. And under the scorching heat wave that rips life apart in the Northern part of the country during the summers, the travelling part was truly a test of my endurance. But the unperturbed manner in which the sales personnel go about their business is a definite source of inspiration to continue in our efforts. The second phase of the internship was a tougher one in comparison to the earlier stint. I had to travel alone to a given set of towns/villages in order to identify market potential in these and surrounding markets and to also identify prospective sub-distributors for PVMI; alongside had to check for competition presence and see how and from where their products were reaching the given markets. The whole distribution structure was revealed right in front of my eyes. I visited 35 towns during the next four weeks, and travelled by all the modes of transport available. The journeys to most places were multi-modal. There were a couple of places which required changing two buses, one train and one shared auto ride to reach, followed by an on foot tour of the town market to identify already present wholesalers and stockists. There were places where one bus would come in 3 hours and I‟d need to wait after completing my work. Believe me, the month of May tests your endurance to the limits. But the hospitality and jovial nature of the people of Punjab always keeps ones‟ spirit high, despite the blazing sun striving to burn everything on earth. At each small village bus stop [which is actually the big Peepal tree in the village], you could see village elders playfully entertaining the young toddlers. Every shop owner would treat you with affection. The gurudwaras in each village would provide you with the coolest water. These things actually make the challenging work seem easier. And I got a chance to visit some highly divine places like The Golden Temple in Amritsar and Gurudwara Takht Sri Keshgarh Sahib in Anandpur Sahib. Continuing with the experience, I discussed my findings of the day with my Area Sales Manager every evening over phone. His suggestions helped me look into factors beyond the scope of my project but definitely necessary to understand
the trends – these included the role that modern retail format is playing in the traditional distribution channels and the impact of Whole sale stores like Best Price and Metro Cash & Carry on the standard markets. I also made trips to certain Super Stockists in the vicinity of Ludhiana to identify their working processes. After 8 weeks of industrious work, the time to head back to the North Branch office came where all interns presented their projects, observations and recommendations to an evaluation committee consisting of the branch‟s top sales management. The team provided us with valuable feedbacks about the work and the places of improvement. Apart from these tell-a-tales, the internship experience was of course enriching. No, I am not writing this down because it is meant to be. I actually wish to convey the importance of an internship program from the knowledge as well as skill-building point of view. This internship gave me a chance to look at the core work, the daily bread earning hard work that is put in by the sales people at the root level. These facets of life and profession one cannot learn after an MBA, since post MBA we occupy the posts of managers and decision makers. But what good decisions can one make until one understands the root process. It is, after all, the sales people who make the sales calls and earn revenues for the organization. The managers have to control and guide their processes and actions and it will be impossible to do so without knowing the true part of the industry. The experience gained in the internship program is the cement that binds the education foundation upon which an MBA graduate has to create his career. And that strong adhesive may be forgotten in due course of time but it will help in sustenance of a long and healthy professional and personal career. My time with PVMI has provided me insights into the FMCG sector that no book/paper could have taught. And yes it was a hard task, one that demanded labour but as the Proverbs 14:23 in King James Bible say – “In all labour there is profit”. The labour put in during the internship shall reap dividends in the days to come and beyond !! Gaurav Bajaj MBA (IB) 12-14 IIFT
Gone too common? Too much of anything is bad but does this also apply to the brands which have gone too generic? Google, Xerox, FedEx, bandaids have enjoyed their share of top of mind recall by the consumers but is there a line after which they have or will have to face a set down. Is it possible that consumers will only remember them as verbs/nouns and not as the companies/products?
vider. After acquiring Affiliated computer services , the largest diversified outsourcing company in the world, Xerox has shifted its focus to services like operating call centers, processing insurance claims, handling automated toll payments, like EZ Pass, and more. The company is having a hard time changing its
Every brand aspires to become first choice of the customers and they go to any extent to
share that special space in their mind. While there are many brands that have enjoyed an excellent top of mind recall by the customers to the extent that they have now become a verb for the function that they perform. But the big question that has come up now is that are they also the first choice of the customers or have they become just a jargon? Xerox for example has become a word used for photo copying of any document but how many of the customers really care about the brand of the photo copy machine. Xerox is also going through a huge transformation from a product centric documents company to a service pro-
image in the market now. Customers initially were not able to understand that why Xerox is talking about call centers and services. Xerox is hence following a straight communication approach where they aim to make people believe that Xerox can stand for many other things while still leveraging over their legacy business. In fact Xerox, for several years apparently ran a
campaign asking the publishers to not use the name “Xerox” as a verb for the generic term “photo copy”. Surf – the detergent by Unilever is synonymous to any washing powder in India. Even the rural and lower income people know about the brand but they are not necessarily the consumers. Surf is associated with the high income target segment and even though it has
a high brand recall value, it does not convert into equal amount of sales. Google on the other hand enjoys a monopoly with very few small players hence, Googling simply implies searching online on Google. However we are yet to see how this anthimeria ( the practice of verbifyng a word, technically meaning a functional shift or conversion of word use ) will help it once if faces strong competition. Sometimes the verb of the brand can be associated with a negative connotation that can harm the brand Image. Photoshop for example now has become a word for anything that is not a real or natural image. People use many other tools to edit the image but the image
is termed as “photo shopped” implying artificially enhanced or beautified. The tool was created to edit the images and making them better but it now also have a hidden connotation of something unauthentic. For the brands like Xerox, Google, FedEx. Surf, Photoshop, Fevicol and many, the verbification of the brand names were subconscious choices of the customers without realizing whether the company wants it or not. The consumers use the dominant brand so often that it becomes synonymous to the verb. This however does not imply that all or any dominant brand can enjoy this identity. Why a particular brand is verbalized and why the others do not is still a question to ponder upon. But many companies deliberately try to practice such anthimeria since this is considered
as the highest connect that the brand can have with the customers. Such brands are considered to be highly successful and highest achievement for the marketers. Companies like Flipkart have used the term “Flipkart It” in place of online purchase as an attempt to verbify its brand. This catchy term has caught customer‟s attention and so far has been proving successful in creating the buzz for the brand. Several years back Yahoo also tried to do something on this line by asking its users “Do you Yahoo?” But such efforts did
not bear fruits for it and now no one does Yahoo anymore. Deliberate or not, the brand verbification has always affected the brands either by hindering the brand extension plans or by discouraging the competitors to enter the market. But the question that still remains is “Is it good to be common?” Prachi Singh MBA (!B) 12-14 IIFT
Simplified
L
ike goods, services, places or any
other entity, Real estate are bought and sold in a market and hence need to be marketed. Even though the scale might vary - from an already congested, major metropolitan city to a small expanding town, from individuals to big corporate houses but the laws of supply and demand or the cause and effect play an important role in governing the Real Estate Market which is where a marketer can comes into picture to generate leads for buyers and sellers. Currently market is occupied by some large players like DLF, Tata Housing, India Bulls and a substantial portion of the market is also occupied by unorganized sector and small regional developers. Properties have been marketed through brokers traditionally, but new places for the firms to engage its customer have emerged. This gives firms opportunity to increase their reach in a cost effective medium. Real estate on a broader scale can be classified in three segments
The realty sector off late has slowed down and with the rising interest rate regime the slowdown is expected to persist given the state of the economic affairs in the country. Here is a view point of the outlook of the sector by CRISIL

In residential sector, Mumbai and NCR to account for over half of the total estimate supply during 2013-2015 in real estate segment.  Commercial sector is expected to have only 37% of the total planned supply to materialize by 2015, with over supply to persisting. Rentals in 90% of the micro markets across 10 major cities remain lower than 2008 peaks  Vacancy level continues to impact growth in rentals. NCR to see maximum expansion in mall space during 2013-2015. With a clear indication from fundamentals of a bearish state in the markets, developers need to go back to the drawing board and devise an effective marketing strategy to survive. They need to focus their efforts on reaching out to the right people with the right communication to attract buyers. Segmenting and Targeting Customers: In this highly competitive market it is imperative for the developer to segment and target the right customer base. With demand for home growing exponentially in last one decade, owing to easy finance available, each customer has specific needs for the home. The firm needs to identify the segment it wants to cater to and then target customer accordingly. The whole marketing communication is based upon the target customer base. Customers can be identified based on various factors some of which have been identified below. Stages of life The Real Estate website commonfloor.com uses information tips to educate first time home buyers who have just started work and are bound to invest in property as they grow professionally as well as with a growth in their family needs.
Income Levels With Tata Housing catering to both luxurious home segment and budget home for middle class people, it has clearly distinguished its communication. For the luxury segment home solution like one given below it has emphasized on the high class living.
buyers and sellers Property Rate - Improving Market Efficiency through transparency Contacting Brokers Selling existing properties/Spaces Thus, online media is an upcoming platform to communicate to the right consumers. Hence, an important a role is played by sites like magicbrick.com, 99acres.com etc which provide a zero moment of truth to both the buyers and sellers. It is said that over 85% of real estate search begins online these days and
Tata Housing Ad for Luxury Housing Segment
Tata Housing Ad for Budget Housing
Whereas when the same company targets the affordable home segment has touched down upon the middle class value and emotional connect with the house as below. New Avenues to approach customers: In the already saturated Real Estate, it is a costly affair to reach the customers through conventional methods like Newspaper/Magazine Ads, TV, Radio, Banners, and Agents etc. Moreover, customers need a single place where they can conveniently compare options available to them using the smart options available like Tabs, Smartly connected devices etc. The property owners also need to find ways to differentiate their offerings among the pool of home sellers. Thus, a real estate company which acts as an intermediary between buyers and sellers needs to provide them with an efficient market place. As the target group moves online, so does the marketing of a real estate which provides a convenient medium for few of the basic functions needed to assist the users like New Projects around – connecting
the number is on an upswing. Comparison of two popular Indian Real Estate Sites, which show a huge rise in the usage SEO Marketing Firms have been developing programs to track the real estate markets to make the required information easily available. For instance, real estate has specific utility when it comes to services like link backs, keyword analysis and original content creation, email marketing campaigns and social networking. Analytical Tools like Google Trends or Facebook Page Insights can be used to identify the popularity and the upcoming trends in the Real Estate Scenario, which can be roped in while devising the advertising strategies for the customers.
Online marketing has an added advantage of being an effective replacement of expansive budgets and hefty broker charges which would otherwise be needed to be paid in the marketplace.
can change the attractiveness of a property and thereby its saleability. Collaborations with financial institutes who extend credits through different innovative instruments or freebies like hefty discounts
Cricketer Yuvraj Singh endorsing a realty venture
Example of using Google Analytics to identify the Real Estate locational trends Online marketing has an added advantage of being an effective replacement of expansive budgets and hefty broker charges which would otherwise be needed to be paid in the marketplace. Customizable Home Solutions: There has been a new trend in real estate market in India especially in the luxury home seg-
ment. Developers give an option to the customers to personalize their home decor. Options include designing the floor plan, choosing interiors, flooring etc. This has value for people have specific taste and are particular about their needs. Needless to say this comes at a premium for which this segment is willing to go the distance. Getting the price right: Pricing is an important strategy tool in Real Estate. A fine balance is needed in order to differentiate a property from the competition as well as to capitalize upon the rates of a property. Traditionally, agents too have been playing a crucial role in the negotiations which
can also bring a differentiating factor for a property in the market place. The market is teeming with products in different forms to lure the buyer to invest in a property which provides a convenient way to the seller/agents to use these offers to club with their own properties. In a few of the innovate strategies, companies are now associating themselves with celebrities to attract the younger generation and increasing the value of the property. All these strategies are implemented in the hope of achieving higher sales. Himanshu Kundoo MBA (IB) 12-14 IIFT
Aakanksha Hajela MBA (IB) 12-14 IIFT
Customer’s Customer S
and became one of the best examples of it. tanding in a restaurant queue, I no-
ticed a couple storming out of the restaurant stating “Such a B-Grade Restaurant!” The waiters were whispering that the lady didn‟t like the brand of water they kept and wanted only Bisleri, Aquafina or Kinley. You don‟t get to see such a thing so often, especially in India, where “sab chalta hai”(Everything is fine). But, I doubt if anyone would buy a laptop that doesn‟t have an Intel processor but AMD‟s processor. That sticker of “Intel Inside” adds credibility to your laptop. Intel is the most famous example of “Brand in Brand”. Dolby Digital is another example to reach out to your customer‟s customer directly.
The lifetime contract of Yum Foods with Pepsi gives Pepsi a great visibility and revenue stream.
Back in 80‟s, companies believed that B2B is a segment where there is not much significance of marketing. It is a rationale based segment, than emotion based. But late 80s brought a change when Ingredient Branding started to thrive. Intel started its programme in 90s to capture this trend
One can tap a Customer‟s Customer in 2 ways, either by Ingredient Branding or by Co-Branding. Co-Branding: The lifetime contract of Yum Foods with Pepsi gives Pepsi a great visibility and revenue stream. Such a CoBranding can also be found in Credit cards such as Jet Airways American Express Platinum Credit Card, ICICI Bank Kingfisher Credit Card, HSBC MakeMyTrip Platinum Credit Card. Sports Brands have also went into this, with Nike+IPod Sports Kit and Adidas+Polar Electro Project Fusion. The most classic example is that of the hospitality industry. As mentioned earlier, the brands kept and used in a restaurant add on to your restaurant‟s credibility and positioning. Going skeptically to a government guest house and finding Jaguar bathroom fittings, removes your inhibitions to quite an extent. Every co-brand adds onto your brand‟s standing in customer‟s eye. In-Branding: DuPont has enjoyed clothing ingredient brands from Rayon to Ly-
have to be really careful with whom they are associating their brand with. Any harm to the partner brand will directly affect the host brand. Another indirect form of tapping customer‟s customer is to independently brand
cra. Dolby, Intel, TetraPak are well established ingredient brands for which a consumer won‟t mind paying a premium. By branding the components of the end product that were merely commodities earlier, one shows the dedication and promise of quality to the customers. Companies can also have huge first-mover advantage while converting a commodity to a brand and thus, gaining long lasting monopolies. But, companies to maintain monopolies in today‟s competitive market have to keep their products competitive either in terms of pricing or technology. These ingredient brands market directly to the final customer to create a demand pull. On the other hand, they push it to their B2B customers. Thus, serving to customer‟s customer allows them to increase their demand in the chain. In both the cases though, companies
your product so as to force the services provider to use your product while providing services to the end customer. With Fevicol becoming a household name for adhesive, carpenters are forced to use mostly Fevicol (or its bottle with some other adhesive) for carpentry.
Palnika Hemnani MBA(IB) 2012-14 IIFT
Time for something funny Meet our doodler Nikhil Wagle
Amar Budati Edtor-in-Chief
Palnika Hemnani Managing Editor Prachi Singh Co-Editor
Navdeep Verma Online Co-ordinator
...... Nikhil Wagle MBA(IB) 2012-14 IIFT