MARKMANTRA MARKMANTRA | SEPTEMBER
Marketing Magazine of IIFT Kolkata
ISSUE 4 | September 2010
BW BRANDWAGON
MARKMANTRA | SEPTEMBER
Editor’s Note Dear Readers,
Singapore to operate its business in India. We are launching our first ever competition through MarkMantra, To see the creativity side of all the marketing enthusiasts we are inviting print-ads for KOOVS. The two best entries will take home certificates and cash prizes. Jayant of 1st year MBA at IIFT has explained what Marketing 3.0 is all about. As an ending note, we are listing down all the recent product launches in our special column LAUNCHPAD. I hope you will thoroughly enjoy this issue with its rich content.
I am pleased to release the 4th issue of MarkMantra. Issue after issue me and my team have been working hard to make this magazine better and better. With the help of new editing team we feel much more equipped and confident to deliver better. This issue is close to our heart since we had done few major changes. We have incorporated new columns to enrich the understanding of few concepts which are not that easily available elsewhere. Vikram and Snehal have come up with an Happy Reading, interesting article on T24 the buzz word these Praveen Kumar G days in the telecom and retail industry. They will tell us what T24 is all about. EDITING TEAM International marketing is very important a concept to know. Time has gone where domestic Managing Editor players used to focus on domestic markets, now domestic players are exploring international Naveen Gupta markets to survive domestically. With such an environment around us, International Marketing Associate Editors is truly of great importance. Hence, we have introduced a new column on International Arvind yadav Marketing which will deal with the strategy used by various MNCs to market their products and Gaurav Gudka services internationally. Radhika Ravichandran I am thankful to Mr. Vivek Gupta for his precious time giving us his interview and sharing with us Vipul Saini his experiences. Vivek, the Managing Director of a online shopping portal called KOOVS has explained what it takes for a firm set-up in
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CONTENTS Banking on Marketing
4
Marketing Terms Exposed
7
International Marketing
8
Telecom: Dissolving Boundaries
10
Corporate Interview
13
Print-Ad Competition
15
Marketing 3.0
16
Launchpad
18
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Banking on Marketing Are Banks Customer Friendly? Do Banks attract customers ? Do Banking services talked about ?
H
ow often have we walked into the bank feeling that it’s a chore to be completed and gotten over with at the earliest? Banks aren’t really places that attract you the way perhaps shopping malls do, through it’s a common thread of money running through it all. Money needs no marketing; it’s perhaps one thing that is inherently designed
walking hand-in-hand with the customers and understanding their concerns. Given the financial crisis the world has gone through, nothing can substitute an element of trust in the mind of the customer about the bank’s advisory services offering a wide gamut of financial products.
brand images with consumer-oriented advertising and distinct product lines. Banks can no longer be order-takers, which was the characteristic of the old banking industry. Today, banking across all segments of people – be it rich or poor, urban or rural – first and foremost requires
brand value isn’t about its logo, tagline or its glossy financial products brochure. Instead, a bank’s genuine potential is reflected through multiple components, all of them necessary - including customer interactions, employee communications and corporate philosophy, and not just
to attract people. However, investment options for money need their share of attentiongrabbing approaches and we see banks often portraying the same in the media. Banks are trying to build valuable
Despite what many believe, a bank’s true
MARKMANTRA | SEPTEMBER advertising and marketing efforts. Banks cannot merely show flashy advertisements on T.V or print self-congratulatory full page ads in the national newspapers bragging about the number of branches and get away with it.True marketing for a bank happens when a customer steps into a bank. The ambience at the bank, the tone of the bank employee and their willingness to listen, the level of assistance offered, the speed at which the transaction is executed without any unnecessary obstacles – all this goes a long way in creating an experience which the customer will either appreciate or never want to relive. In the world of banking, Jyske Bank brings in a difference. Jyske Bank, Denmark’s third largest financial institution, invested 400 million Danish kroner (equivalent to 54m euro or 72m USD) to redesign and
brand their bank as an experience bank, when asked by management to double the number of retail customers. As you enter its branch office, you encounter the smiling face of a Jyske advisor standing behind a PC monitor on a countertop. This area is called the AskBar. In a Jyske branch practically everything is called a “Bar.” Even the till has been renamed the MoneyBar. At the AskBar you can get an orientation either from the bank advisor or from a short video. Or you can just proceed into the rest of the bank, at the centre of which is the aforementioned and seemingly essential CoffeeBar, where they serve some very fine coffee for free. There, from the big plasma screen, you can watch the news (via RSS feeds from various prominent newspapers around the world), weather reports, and so on, while you help yourself to the coffee.
MARKMANTRA | SEPTEMBER Another integral part of the new Jyske “bank of the future” is something called the Theme Island. This is where you pick up “packages” that describe the bank’s “products.” Jyske has made an attempt to make its products physical by putting them into boxes like software boxes or DVD boxes, to make intangible and often complicated things like investment options easy to understand and interesting to buy. Anyone can walk into the bank, just like they would into a coffee shop, read papers, hang around and maybe even check out some new products and services the bank offers. The packaged products have a barcode that you scan on specially designed computers which will then show you a small movie about the product and what it has to offer. The conference rooms in Jyske Bank branches also feature huge wall-mounted plasma monitors. These are touch-screen controlled. Customers can stroll into a conference room with coffee in hand, and a bank advisor can show them video presentations or use the touch screen to help them calculate what their mortgage payments might be, for example. Jyske Bank is a bank, a store, and a modern library. It is the place where customers become smarter, inspired, and experience a straightforward atmosphere.
Jyske not only managed to double its base, it also managed to get so much free press for its efforts that the bank’s awareness skyrocketed. Banks in India still have a long way to go to creating a memorable experience for the customer that matches up to the kind of experience a fine hospitality setup like Jyske Bank would offer. However, there is always the scope of creating an environment that encourages the employees to be truly concerned about the customers. The banking industry does not have many points of differentiation because the nature of product offerings is more or less similar. But they can differentiate by providing high quality service which in turn will lead to customer satisfaction. The banking sector has a huge role to play in safeguarding the prospects for economic development across the globe. Financial awareness in India is still in its infancy where the masses are concerned. People still need to understand the basics of financial planning and how best they can create, manage and sustain wealth. Banks have a very important role to play in the new India that is growing at a pace which was never seen before. The
MARKMANTRA | SEPTEMBER need of the hour is to go beyond merely selling depository services and financial products. It’s not really about selling, it’s about creating value. If marketing in banks comes up to this, the day isn’t far when banking will become an enjoyable experience for the customers and the ambience in the banks will begin reflecting a warm and welcoming environment. Going the extra mile is what is ultimately going to bring the customer back again and again, something that even the best of brand taglines can never do. Wriiten By Mehak Gandhi MBA IB (09-11) Indian Institute of Foreign Trade
Tryvertising: It is a term actually used to make the consumers familiar about the product before they actually buy it by actually making them try the products. It is actually a new breed of product placement in the real world, integrating the goods and services into daily life in a relavant way. In this way the customers can actually make up their minds based on the experience, not on messages.
Product Placement: Is also sometimes known as embedded marketing, where the products are contexually placed in movies, television serials or news. This method is very effective as it is able to make a “emotional connect“ and better dovetailing with the relevant content.
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International Marketing
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Written by Arvind Yadav MBA IB (10-12) Indian Institute of Foreign Trade
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Telecom: Dissolving boundaries
I
t is rule of game called “Treasure hunt� that if you are not finding the hidden treasure then either search for new locations in the vicinity or expand the vicinity. Something similar is happening nowadays in the telecom industry. They are now crossing the telecom domains by aligning themselves with other sectors or by establishing themselves in new geographic locations in search of revenues. Earlier, ARPU was very dominant factor for telecom industry but it is not the exact measure of profitability. But now telcos have realized it is not only about the ARPU but the minutes of usage i.e. time for which subscriber is using the network. More the network is used, more the revenue is being generated by the operator. The importance of co-branding is reiterated with the latest developments in the Telecom industry. Written by | Vikram Singh | Snehal Gajbhiye | Symbiosis Institute of Telecom Management
MARKMANTRA | SEPTEMBER Telecom in Retail It is well known fact that consumer acquisition cost is much more than retention cost and hence Telco’s are also looking for different innovative and loyalty based programs to retain their customers. This may prove to be a better technique instead of using all your money for marketing, branding and advertising as telecom industry enjoys one of the most lowest customer retention rates. Tata Teleservices is among the very first operators to enter into a strategic alliance with Future group to bring about a new marketing
to talk more or talk more and buy more. This concept is similar to petro cards in early 2000s which was joint effort of petroleum and credit card companies like HPCL-ICICI Bank credit card and IOCCitibank credit card where customer is getting exemption from the surcharge imposed on fuel, 15% discount on pollution under control check, 5% discounts on Exide batteries, MRF tyres. Future group is also giving a thought to have collaboration with fuel companies, free electricity offer for those who have purchased
concept of “Retailer-Telco partnership” under “T24” brand. T24 simply means talk for 24 hours which is a loyalty based program in which consumer will buy more
electric appliances from Future retail outlets. In the era of increasing competition only option left with the operators is to gain as well as to retain. Same strategy
MARKMANTRA | SEPTEMBER can be followed by Airtel with Easyday as well as Reliance with Reliance fresh. As a matter of fact that Virgin Mobile targets mostly the youth sector so they have decided to have tie-ups with electronics, consumer goods, apparels, restaurants, consumer goods. But still there is lot to be explored and achieved in this concept of co branding. For example: Companies giving international SIM like Airtel has recently launched World SIM for international roaming can also collaborate with Airlines. Telecom in Media Way in which telecom entered into retail sector, same way it has entered into media and multiplexes. Vodafone Tuesdays: a concept in which Vodafone customers are being awarded 2 movie tickets at price of one on Tuesdays with Satyam cinemas in Delhi, Mumbai, Chennai. Loop mobile is also providing similar kind of services with Cinemax multiplexes and Sterling multiplexes on Fridays. One can also purchase a combo pack of regular Popcorn & Coke at just Rs. 50. Through this tie-up with all 13 Cinemax theatres and Sterling Cinema in Mumbai, Loop Mobile subscribers located anywhere in the city will be at convenience. While the procedure to avail this is very simple, the scheme is open at a first come first serve
basis cueing subscribers to book the tickets well in advance after receiving the Mcoupon. Bundling of Services Most people think telecom is restricted to voice calls but there are lot of things under umbrella called telecom like DTH, wire line, wireless, VAS, Broadband. So operators like AIrtel, Tata, Reliance which are in all the verticals can gain an added advantage by providing discounts on access of all these services from the same operator. This is bundling of services. Moreover if we observe the scenario in European countries, we find that they have started convergence of all these services on single platform which not only saves on the cost but also reduces subscriber churn and provides retention.
MARKMANTRA | SEPTEMBER
CORPORATE INTERVIEW Q1. Could you tell us about Koovs and its business model?
People usually confuse E-commerce with only having ‘www’-presence and ignore the possibility
of offline associations with complementary
Koovs Singapore Pte. Ltd. provides an online businesses. Perhaps exploring the offline platform for mass dealings of products & services association for any E-commerce is the most
at an exceptionally great bargain. It assists all important piece of advice I would recommend to Merchants (big/small) through personalised all new ventures.
consulting, and packaging their products & Q5. Reasons for choosing Singapore as your business center? services into lucrative e-commerce saleable attractions so that they can get Singapore is the world’s fastest more business and benefit from
growing business destination.
economies-of-scale.
Its
At the same time it helps its
makes it an attractive choice
products & services and gives
among many APAC and SEA
individual customer a great
countries.
buying power through demand Q2. How do you communicate with your target market?
demographics
and high currency valuation
Customers in availing amazing
aggregation strategy.
dense
It
offers
many
challenges and opportunities at
Vivek Gupta, MD, KOOVS
Always moving ahead with our new strategies, Koovs’ competitive-advantage has made it
unbeatable in Singapore because of its strategic-
partnerships through which we have managed to affiliate ourselves with indirect channels of Government support. In addition, we deploy all
major E-commerce expansion tactics through revenue-sharing affiliation programs, linking up
with several social-media and social-networking websites like Facebook, Twitter etc.
the same time and thus gives
an immense grooming platform
for entrepreneurs like me.
Q3. What are some of the Promotional strategies you employ in Singapore?
Without a doubt there are millions of businesses that have a proven track-record of E-commerce venture. But that’s not the case with many businesses that are trying to sell products & services in a competitive market.
To penetrate a saturated market like in Singapore one needs to have ideas lucrative enough to divert
MARKMANTRA | SEPTEMBER traffic towards his E-commerce platform. At Koovs Q6. How are you targeting customers in India, or we strongly believe in strategic-partnerships. One other countries: International marketing aspect?
of our partners is Recycle Machine Enterprise Koovs is among the early starters of Group(RME), run by a group of philanthropists. They buying websites in India. Today it is a very
deploy their recycling vending machines in most renowned and popular venture. Also it is the first crowded and posh areas of Singapore. And the
and the only Group-buying company to expand
people who use these recycling machines to overseas. Although our regional operations target
throw in plastic-garbage are rewarded by Koovs location-specific market but the internal sharing coupons whose price may vary from $1 to $20. of expertise and resources that we have acquired Even big-corporate cannot compete with Koovs over a period of time gives us the edge over in rewarding people with such a hefty offer for competition. recycling a used plastic-garbage.
Q7. What was your prime motive in becoming
Singapore’ promotions by the Government.
I consider myself an above average risk-taker
Thus, Koovs is playing a big role in the ‘Green an entrepreneur?
Likewise, in India Koovs has over 30 corporate and an opportunist. Being an aggressive doer tie-ups (IBM, Cisco etc), over 20 affiliate who can relatively easily deal with today’s partnerships (Lootmore, Foodiebay, Accentium struggles without getting distracted by future etc) and many strategic-partnerships (Myntra, rewards or lucrative substitutes during failures, I
Ferns & Petals etc). On a similar note we are would say, in one word, it’s the ‘job-satisfaction’ proceeding on to new territories.
that was the prime motive behind becoming an
avenues your company is looking at?
willingness to take responsibility of activities/
Q4. What are the future prospects and growth entrepreneur. And the love for the ownership and With the pace our start-up venture Koovs is tasks help me deals with the ‘motivation’ part. expanding we expect it to be among the top
service selling E-commerce venture in South- This interview was given by Vivek K Gupta east Asia by Feb 2011. Koovs’ altered strategies an IIT grad who had done his MBA from
and innovative ideas have been successful till Nyenrode Business University & Kellogg
date and most likely will outperform the top-most School of Management. Presently he is the regional competitors.
As of now we have presence in India and Singapore. And we are up for a big launch in another big SE Asian country soon.
MD of KOOVS.
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PRINT-AD Competition Design a print ad for the promotion of Koovs. To know more about Koovs, please refer to the interview of MD Koovs published in this edition. For further detail visit at koovs.com. Prizes
The top two entries would receive certificate of appreciation and prizes worth Rs 500 each. Rules
1. The maximum number of members in a Team may be two.
2. Please send your entries with subject line as well as document name as <Koovs>_<TeamName>_<Institute name> to markmantra.iift@gmail.com.
3. The last date of receiving all the entries is 25th October 2010.
4. The entries would be judged by the IIFT professors and the shortlisted entries would be sent to Koovs MD for final decision.
MARKMANTRA | SEPTEMBER
The Next Level : Marketing 3.0 From Products to Customers to Human Spirit !!
M
arketing, today, has really come of age – from being ‘product centric’ (Marketing 1.0) in the industrial age to being ‘customer centric’ (Marketing 2.0) until recently. But the world is fast reaching an inflection point, at which a complete shift will occur in the way customers are perceived and in the way marketing is done. And to stay ahead of the curve, brands will have to evolve themselves
to survive in the renewed market, to think on their feet and express their benefits through ideas, service and entertainment. Welcome to the world of Marketing 3.0 – the ‘human centric’ era. Today, we are witnessing a transition from the information age to the ‘age of participation’, and hence it is imperative for the marketer to look at people not just as customers, but as ‘humans’, who are active, expressive, anxious and conscious. No longer is the purpose restricted to identifying and
fulfilling only the needs and wants of the customer; now it’s vital to identify and fulfil their deepest anxieties and desires as well. An unprecedented coalescence of lowcost computing devices, easily available bandwidth and open-source has allowed unlimited connectivity and interactivity of corporations and individuals alike. So today, the people are creating news, ideas
and entertainment as well as consuming them. The means of marketing must now evolve as the media itself evolves, and as the marketer exercises little, if any, control over what the customer sees. The internet and the multifarious forms of social media have enabled the customer to see what a company is doing for the benefit of the community as a whole.
MARKMANTRA | SEPTEMBER Hence, collaboration with the customer is called for to listen to his/her voice and to capture market insights which can help in distilling out a distinctive ‘cultural dynamic’ that has a significant resonance among the various communities. Moreover, as a natural consequence of globalisation, cultural issues urgently need to be put at the core of a company’s business model. A steady rise of the ‘creative society’ has also necessitated that the products and services must overreach the satisfaction of needs to deliver an experience that touches the customer’s spiritual side as well. The customer isn’t just the king, but s/he’s also the R&D and product development head today. Hence, it is imperative for companies to create personal communications with the customer by promoting their freedom to talk about the company and its brands.
and Brand. A clear positioning in the customer’s mind will lead to a distinct brand identity; strongly differentiating your brand will give it a different brand image; and a clear positioning bolstered by a strong differentiation will lead to formidable brand equity. Companies must also realise that they are a part of the society and the environment, and must align their mission, vision and values towards social responsibility. Aspiring for sustainability will definitely strike a chord with the people and this is what people share on social networks.
Marketing 3.0 requires the companies to create not only products and services, but entire corporate cultures, which are customer value driven at the fundamental level. Instead of a linear relationship between a brand and a consumer, an interconnected linkage between company, The customer today demands collaborative, brand, employees, consumers and iconic, and independent marketing community is the need of the hour. approaches. Sophisticated consumers of today are creating the future’s creative Written By consumer markets, in which targeting Jayant Rana the mind isn’t enough, but the key is to MBA-IB (10-12) target their hearts. So, marketing must be Indian Institute of Foreign Trade emotionally relevant and redefine its root as a triangle of Positioning, Differentiation
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Product
Lauchpad Product 1 Company Name: Brabus, Germany head explode. Steve Jobs, your stupidSector: Automobiles fast luxury sedan has arrived. Company Profile: Brabus, Germany, is a high-performance aftermarket tuning Launch Time: August 2010 company which specializes in MercedesTarget Market: The ultra-premium class who are tech-savvy especially Apple lovers Positioning: The new mobile office Benz, Smart and Maybach vehicles. New Product: Brabus iBusiness Sedan The latest products from Apple, New Product: Brabus iBusiness Sedan The latest products from Apple, including the iPad, have all been integrated into a Mercedes-Benz S-Class to create the Brabus iBusiness. Not only does it promise to be exciting to drive, but the rear passenger compartment is fitted with enough tech to make an Apple junkieâ&#x20AC;&#x2122;s
Product 2 Company Name: Virgin Group, UK Sector: Telecom, Aeronautics Company Profile: Virgin Group Limited is a British branded venture capital conglomerate organisation founded by business tycoon Richard Branson. The core business areas are travel, entertainment and lifestyle.
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service providers that offers integrated New Product: Virgin Galactic- Space telecom solutions to its customers under Travel along with 340 Virgin Galactic the Tata Indicom, Tata DOCOMO, Photon Astronauts at a cost of $ 200,000. and Walky brands, and uses both the CDMA and GSM technology platform(s) Launch Time: Spring 2010 for its wireless networks. New Product: DOCOMICS, a sequel to Target Market: Customers keen to reach infinity and beyond are from all walks of life – from trust fund teens, to a 78-year old grandmother and who can afford the USD 200,000 price tag on a single ticket. Product III Company Name: TATA Teleservices Sector: Telecom Company Profile: Tata Teleservices Limited is one of India’s leading private telecom
TATA DOCOMO’s recently announced, unique, industry first, m-Comics, enables consumers to read full comics on mobile along with special effects like character vibration, sounds, zooming text bubbles. at a nominal rate of Rs 15/- per comic chapter.
MARKMANTRA | SEPTEMBER Launch Time: Jan-Feb 2010
Target Market: TATA DOCOMO users and customers with rich-media devices. It is accessible through viewer application platform for reading mobile comics. Written by Radhika MBA-IB (10-12) Indian Institute of Foreign Trade
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