brandi issue 2

January 2012, Vol. I, Issue 2High on marketing...

The Year of the Titans

MIB, Delhi University|BRAND.i, Vol. I, Issue 2, Jan 2012

IndexIndex

Vishal VishyBrands: It's About You

Sanjay RaturiNokia Vs Samsung; Battle royale

Saurabh Ruhela Recession: An Opportunity To Build Your Brand

Editorial Team, Brand.i2011: Year of the Titans

Sahil Lohra Demise of a Creative Genius

Ankit SoniWhy this Viral Viral Di ?

Himanshu ChauhanCricket Mania

Kiran KrishnanMarketing In The New Era: Shopper Marketing

Ankit Soni

The War of the Noodles!

Janya Mahesh Menghrajani'Emotional' Marketing

Jay PadhyaMarketing Of Luxury Goods

Puneet KapoorHero Honda Re-branding To Hero Motocorp

Rohit SahReckitt Benckiser: Becoming Indian healthcare giant

Shubham ShrivastavaBreakthrough or Mismatch?

Raghu & PraveenTourism Marketing

Megha RathodSensory Branding And Its Importance In Marketing

Ankit SoniFlash Mobbed !

jayant desaiPositioning: Erstwhile or Still A Relevant Strategy??

Akashdeep SahReferral Marketing: Simpler Yet Smarter

Himanshu ChauhanAnna Phenomenon


01Brand TriviaApple's original logo in 1976 featured Isaac Newton sitting under an apple tree.

What is shopper marketing? Brand which dwell on “shopping experience” as a the key driver of differentiation

It is a relatively recent marketing discipline which aims at converting shoppers in buyers, through an New format retailers who are looking at expansion integrated marketing approach for the mutual /re-launch of their store / department/category etcbenefits of both the marketer as well as the retailer.

The various private labels which are looking at carving This concept originated in the West initiated by out more market share etccompanies like P&G, Unilver & Coca Cola. The

emergence and dependence of Modern Retail is Emerging Trends believed to be the driving force resulting in new

A recent survey by the Grey and G2’s ‘Eye on Asia’ concepts like shopper marketing to influence report for bulk of Indian shoppers throws out highly shoppers in some of the largest markets like interesting insights. It notes,Walmarts, Carrefours, Tescos, Sears etc. Ever since,

Shopper Marketing has been working for brands One-third of final purchase choices are made in-store, around the world to go beyond conventional more so in hyper or super markets, claims recent. merchandising and visibility creation to actually drive

Indians spend an average 36 minutes in supermarkets purchase.and about 20 minutes in provision stores.

There is a fundamental difference between shoppers It notes that 50% of consumers decide on the basis of and consumers. Shoppers behave differently from what the information is provided at store level— consumers. With consumers the focus of the brand is promotions, demonstrations and advice. on consumption. With shoppers, the focus is on

purchase! Also the shopper frequency is increasing. With more visits per week and a slowing interest in the big weekly Whether digital, e-commerce, m-commerce, shop, the right thing for, say the food brands, would traditional media, in-store or direct communications, be to suggest customers ‘ideas for dinner tonight’ shopper marketing encourages retailers and rather than just ‘ideas for dinnermanufacturers to communicate more directly with

consumers. It should therefore be noted that it is not Various other reports also note that, Shoppers are limited to only in-store marketing activities but is a increasingly making, changing or reinforcing their part of an overall integrated marketing approach that purchase decisions at the store. Worldwide studies by c o n s i d e r s t h e leading FMCG opportunities to companies put d r i v e this figure as high consumption and as 70%. Hence, i d e n t i f i e s t h e marketing for low shopper. i n v o l v e m e n t ,

impulse purchase From an Indian p r o d u c t s a r e p e r s p e c t i v e , expected to gather S h o p p e r speed. marketing is ideal

for: In addition, the store is the second B r a n d s w h i c h largest source of h a v e a h i g h awareness, after dependence on Television, for modern retailinformation on

Kiran Krishnan

IIM Indore

Marketing In The New Era: Shopper Marketing


02Apple was the first company to introduce the mouse and the trackpad.

brands and products. Not surprising then, that the be the differentiating factor.store is the new ‘moment of truth’ for brand

Cashless shopping would be an accepted norm. All we marketers seeking to go beyond share-of-mind, to have to do would be just flashing our mobile phones capture share-of-pocket.in the counter and walk out. M-Commerce would be

Key Insights the ordinary mode of cash transfer.

The Popularity of Mobile Phones In 2010 brands really started to harness the power of social networks – but there is a still a lot to learn. In

Smart phones provide us with the mobility, 2011 emerging technologies will allow users of social convenience and information to reduce the barriers networks to buy products directly from sites like to purchase thereby converting us from shoppers in to Facebook. Geo-marketing (such as Facebook Places buyers. and FourSquare) is also taking hold, allowing brands

to target shoppers based on their geographic Smart phones/mobile devices provide a ‘search-to-locations.shelf’ service whereby shoppers are using digital

communications to inform a buying decision before E-commerce would be more of an Everywhere even setting foot in the store. Even when in store, Commerce concept and Social buying would those shoppers are using the mobile to check on the dominate the online buying space.prices, or mobile coupons or simply googling to double check whether the best product has been Hence, in tomorrow’s world, your mobile device purchased at the best possible price. Smart phones would be your digital looking glass!thus have become ubiquitous and Google says Mobile

Where are Indian Companies?Ads is the future of advertising See reference videos In India, the Modern Retail is still at the nascent stage There is also this explosion in the mobile application but growing at strong double digits. Here, hanging field which are being taken up by brands. These around in malls is increasingly becoming a nation branded applications, which act as tools to help past-time. We have a lot of catching up to do with our people shop are essentially a highly involving form of western counterparts and hopefully with the recent direct marketing and improve a shopper’s life. And if developments like Wal-Mart entering India and rise a brand can improve a shopper’s life, then repeat of other modern retail formats, shopper marketing is purchase is even more likely and loyalty beyond expected to prosper.reason can be built.Some recent news in this field are:Future of Shopping?In July 20, 2010, Coca-Cola India has appointed Product catalogues for smart phones is already the OgilvyAction, the activation arm of Ogilvy India for new thing for big retailers and billions are being spent creating shopper marketing programs for the on providing a flawless user experience to shoppers. company’s brand portfolio. OgilvyAction will work RFID technologies, Location based services, mobile across all key channels where Coca-Cola India payment gateways; social shopping will truly operates in the country.transform the way we look at shopping in India.In February 2011, Saatchi announced that its global We can expect an increased leveraging of technology clients, who have a presence in India like Diageo, where in one would be increasingly dependent on the P&G, Pepsico and LG are expected to extend their smart phone apps prior to purchase say like Big shopper marketing business to the agency in India Bazaar Apps, that still allows consumers get the too.cheapest deals without the crowd, chaos and long

queues. Madison Shopper Marketing (MASH) has already started its operations and is currently providing to Shopping for dresses would be so interactive that we services to clients like Britannia & Tata- AIGcan try on the various clothes on a virtual mirror and

check out the best suiting ones by just a few swipes. And all you marketers out there, does all this sound Customization would gather more speed and would like an interesting career option?

Brand Trivia


03Brand TriviaSteve Jobs commonly donned a black long-sleeved mock-turtleneck made by St. Croix, Levi's 501 blue jeans (he owned more than 100), and New Balance 992 sneakers.

Yes, you heard it right! These are times of the Noodles it. There is almost no prominent communication in war in India. And if you are sitting with a bowl of your India, yet it is good in numbers. It is growing at good favourite 2minute noodles you have been eating since rate and the distribution is slowly reaching tier 1 and years, there are high chances that you might be eating tier2 cities. This popularity made the company a new brand of noodles when you are reading the next "Chaudhry Group" set up a factory in India too.issue of this magazine.

The instant noodle market is growing steadily at 20-25% annually. There has always been a single leader i.e. Maggi by Nestle, the others only take single digit percentages. Maggi has, however, not been sitting quiet like an arrogant leader; it continuously revamps its campaigns and products too.

It came up with a new 'Meri Masala Maggi 'recently, bringing out a new spicier version. It already has the classic flavour - Vegetable Atta noodles, Curry, Chicken and the fast growing Cup variant. In fact, Maggi has the highest number of variants in the category. It is being leader in the market that gives Maggi the power to continuously experiment and also get away with failures.

If you think Maggi is the king and will be, and that it doesn't need to fear, you may be wrong. It is David vs. Goliath, David being not one but constituting many Indian and foreign brands such as Top Ramen (Nissin), Yippee (ITC, WaiWai (Chaudhry Group), etc.

New entrants such as Yippee have aggressively taken t h e m a r k e t . M o n t h s b e f o r e t h e a c t u a l communication, Yippee noodles was present in almost every mom and pop shop , which was the result of ITC's efficient distribution network and aggressive margins. This was because this category has a major dependence on the taste and hence this period was seen as a testing and sampling time. When the communication started, they even changed the product and brought round cakes instead of the conventional rectangular ones. Now they are one of Maggi has never had a brand ambassador and its the major competitions to Maggi in the urban areas. recently concluded campaign had the consumer as

the ambassadors.Let us now talk about our neighbour Nepal's entry to this war – WaiWai. WaiWai is a domestic name in the Whatever the future holds for this war, one thing is for North East and other eastern areas like Uttrakhand, sure- the consumer will have the last laugh , as the etc. It is quite popular in hostels and boarding schools choices will increase , the offers will increase and the due to its unique flavour and different ways of making taste will be the decider as it has been always.

Ankit Soni

Master of International Business, Delhi University

The War of the Noodles!


04Brand TriviaThe original Apple 1 computer sold for $666.66.

Nails should not be cut at night for fear of evil spirits!! at all big temples etc. are exactly the same marketing Evil spirits are eagerly waiting for the next human who tools used by soap & shampoo companies. To sell cuts his nails and are all-equipped to attack.. shampoo in a sachet (cheap) or a bottle (expensive), is

decided depending on your level of blind faith.·Hiccups indicate someone is thinking of you!! The hiccups must have been taught telepathy at school.. “We are men and not afraid of anything!!” is a cliché

in the Indian books on men's egos. But ask an Indian No matter which part of the world you are in, people to fight a eunuch and he will back out. In India it is have their own set of superstitions and beliefs and believed that the curse by a 'hijra', (as eunuchs are India is no exception. These superstitions and beliefs popularly known) if meant wholeheartedly, can have have turned into a breeding ground for marketing. implications ranging from impotency to even death. I

foresee a day, when everything from grocery to Urban consumers were looking out for a stress buster stationary will be sold by eunuchs at five times the that would enhance productivity and sustain energy prices, and we would have no choice, but to pay, levels. A hint of 'demand' and the 'supply' was ready: unless we are ready to bear the burden of an “Art of Living”. Sufficient word-of-mouth publicity everlasting curse.backed by public figures like Vijay Mallya and Lara

Dutta has made Sri Sri Ravi Shankar a household The issue is not just in India, it is world over. In the name. USA, there have been several cases of cult suicide. One

such group was 'Heaven's Gate'. In Switzerland, 'The Baba Ramdev, a school dropout, has turned Order of the Solar Temple' mass suicide killed around millionaire. The eminent yoga guru's empire includes 74 people in two towns. About two thirds of the hospitals, wellness centers and colleges worth over Rs. deaths were murders. This included the murder of a 1,100 crores. Astonishingly, he is just about 45 years of newborn child. age. Products worth Rs. 3,000 are sold every minute

by his companies. How did Baba Ramdev become so Across the world, religious sentiments seem to pour big!!! He created customer communities and ensured out during Diwali, Christmas and other festivals. that the brand became a religion. The significant Donations pour in at this time. Religious institutions contribution by Patanjali Yogpeeth, intended to be a and groups launch their faith marketing campaigns to rival to the World Health Organization, cannot be gamble with people's sentiments and emotions. We forgotten. Most importantly, Swami Ramdev went far fail to understand that a donor should donate based beyond medicines, to what we call 'lifestyle'. on merit and not merely to satisfy his religious or From soaps to towels, from hats to shoes, there is a sentimental quotient e.g. UNICEF's actual spiritual touch in every item up for sale. Humans tend contribution to charity is under 15-20% of what they to bribe even GOD. From ancient days, human has collect. The rest goes to administration costs, been promising charity if he is rewarded. He pays part overheads, etc.of his earnings to please the GODS for more. Greed plays its part. Shirdi, a small town in the state of Sentimental Marketing which markets sentiments, Maharashtra, is renowned for its 'Sai Baba' temple. religion and beliefs in a commercial way, is becoming 'Bhakts' the world over come to seek Sai Baba's a way of life. You and I are being sold our own blessings. Surprisingly, the rates for hotel rooms and religion, our own beliefs and our own customs. We food, fluctuate across seasons. A weekend of 3 or more ignorantly pay big bucks and happily comply. days, and the prices would go up by about 2 times. The Religion and beliefs are not bad, blind faith is bad. 'Bhakts', not wanting to disappoint Sai Baba, would Payout on sentiments is BAD! It is time we use our happily pay even 3 times the price!! intellect and question our beliefs. It is time we ask

ourselves, “Do we want to nurture the poisonous tree Market segmentation, differential pricing schemes of sentimental marketing?” e.g. different prices at Shirdi or in queues for darshan

Janya Mahesh Menghrajani

Welingkar Institute of Management Development & Research

'Emotional' Marketing


05Brand TriviaApple's current logo was designed by Rob Janoff.

“Live life, King size “is truly today’s a mantra of the consumer age never seen before. Today, a distinct and new age of brand-savvy customers has begun where they demand more than just satisfaction. As per the saying from guru of marketing P. Kotler, ”Satisfying the customer” has gone past and “Overwhelming the customer” is true way to succeed in today’s neck-to-neck competition. Today, the customer goes beyond the functionalism of a particular product and looks out for the experimentation and an identity behind the usage of the product. When it comes to luxury products, they sell themselves on basis of their identity, brand name and more importantly their marketing.

Take an example of Champagne, where earlier there Louis V had a 20% growth but the luxury brand were no correct methods of storing such an item it Tiffany faced a decline in sales.gained a momentum to be a luxury drink for the

It is the advertisements and brand ambassadors that affluent. Certainly, now the age has shifted to a play a vital role in the image-formation of any brand. segment of consumers willing to sacrifice a small part The worshipped celebs have done promoting and of savings to but the brand of their choice. Well but advertising of a brand since quite past years. Be it what it takes to fit a brand name in a mind of a C.Ronaldo for Bugatti or Federer for Rolex, they customer. According to a research1, symbol plays a create a vision that these products are way beyond vital role of a luxury item.ordinary. The Fashion weeks features favorite

It is certain that when you are buying a Gucci or celebrities endorsed with their respective brand Armani you are looking above the functional aspect of promotions. Glamorous has been on similar terms of the product. You could do with an ordinary product being luxurious. The best part is that gender is not a but you look into these luxury brands as they make concern because brands are meant to work out for you feel a sense of superiority and exclusivity. It is a both the sexes, like the Louis V who makes finest misconception that flashy, superfluous priced design hand bags for females and flamboyant suitings commodities are luxurious. In fact, in most cases what for men.distinguishes a luxury product from non luxury one is

Internet advertising is pulling every user to access the the “exclusiveness” or ”specialty” .latest trends and launches. Even social networking

The symbol speaks the image and creates a lust of a sites features the names of those well named brands brand. The other most important factor is brand liked by your friends.preference and brand loyalty2 which are prime factors

These brands continuously promote the feeling which in determining the brand equity. The age of the luxury is to live beyond just the ordinary and elevate the product also is distinguishing factor-An example of status to create a legacy in society. But to get that Bontoni3(A shoe brand ) has entered the luxury shoe image of being luxurious is beyond short term market since 2004 and has the best designs like their advertisements. It is all about providing the competitors like Gucci or Berluti but hasn’t had an functionality as well as the extravaganza feeling to the upscale in their sales in the American shoe market. customer that he is unique. It is about to make him / The advantage of having a luxury brand name is that her feel that he / she is above the ordinaire’ and the name is unaffected even during the economic belongs to a class that is enjoyed only by a few downfall. Again, the brand loyalty plays a vital role. exquisite people.During a recent meltdown luxury biggies like the

Marketing Of Luxury GoodsJay Padhya

Student MBA


06Brand TriviaAfter being kicked out of Apple, Steve Jobs started an unsuccessful company called NeXT.

The year 2010 marked the end of one of the world’s The new logo shows the letter ‘H’ in capital with a most successful corporate marriages – Hero Honda clear white background along with ‘Hero’ written and a new beginning for The Munjals of the Hero beneath in Red. The black color in the logo stands for Cycles Ltd. Back in 1984, the two firms shared a solidity and premium-ness while the Red gives a common belief that India with its burgeoning feeling of energy, passion, and confidence. To population, low per capita income and unorganized represent ‘Hero’ in 3D, the logo even has a triangle, public transport system, would be in need of frugal trapezoid and a parallelogram in the first letter of its means of personal transportation. Hero with its name. The sharp edges depict style, engineering and inherent knowledge of selling products in India was innovation. The new logo is designed to relate to the the champion in Sales & Marketing and Honda was youth and their 'can do' spirit. the undisputed leader in two wheeler technologies

The company has rolled out a new anthem ‘Hum worldwide. After 26 years of sharing technology to Mein Hai HERO’ (There’s a Winner in All of us), make the most economical and fuel efficient composed by A.R Rahman with the campaign launch motorcycles for the Indian consumers, Honda on 15th August to capture the maximum eyeballs and Motors decided to move out of the joint venture. This was received with a lot of excitement and applause by divorce enables the Hero Group to export its

the masses that could motorcycles to other connect the HERO-ism nations which was not of the brand with their possible earl ier and daily challenges and a true brings us to an exciting winning spirit. I agree birth of a new brand – with Mr. Pawan Munjal, Hero MotoCorp.t h e C E O o f H e r o

The wor ld ’ s larges t MotoCorp, who explains manufacturer of two- this campaign as a true wheelers by volume sales sense of Indian Catapult for nine consecutive years w h i c h s i g n a l s t h a t since 2001 and one of The although its roots are very F o r b e s 2 0 0 M o s t Indian, it is ready for Respected Companies in global expansion. the world – Hero Honda

I like the way the Hero has come a long way. With a massive 5 million strong Group has re-positioned itself for the emerging Brand consumer base and more than 20 million two-India. But the real test begins for the Munjals who will wheelers on Indian roads, Hero Honda truly became now have to look at building very crucial R&D Desh Ki Dhadkan with Dhak Dhak image touching facilities required to operate in a tough market like the hearts and strings of everyone across the nation. India. As a consumer, I’ve always felt that the real Rebranding this big a brand would be a mammoth Hero in the new-age Hero Honda bikes was the task in order to move out of the mould of Hero Honda Honda engine viz. CBZ, Hunk and Karizma. Hero and ride into newer and different horizons. The Hero MotoCorp needs to make its consumers aware of the Group roped in London-based Wolff Olins - a global technology advancements and progress they make in brand and innovation specialist, to work on its new their motorcycles to maintain their leadership identity including the brand architecture, brand position in the market. With players like Bajaj, TVS name, brand logo and brand positioning with an and Honda rolling out exciting models every year, we underlying theme of Creation, Renewal and Re-just need to wait and watch if the new HERO becomes energizing the brand. The entire re-branding exercise India Ki Nayi Dhadkan or not.would involve a gradual shrinkage of brand Honda

and place Brand ‘Hero’ on all its products by 2014.

Puneet Kapoor

Goa Institute of Management

Hero Honda Re-branding To Hero Motocorp


07Brand TriviaBack in 1994, Apple actually launched the first mass-market color digital camera in the U.S.

The only thing that perhaps found in each and every drive and flooded modern retail shelves with its brands first aid kit is Dettol. Off the decade the Dettol has Lifebuoy and Domex to take on RB's top brands like become synonym of antiseptic liquid. The matter of the Dettol and Herpic toilet. However, it barely affected the fact is that many such antiseptics, like Savlon, tried to people's choices when it comes to personal hygiene.enter in the market, but could not survive the place

The man behind the success of RB in Indian market and where people rely on their faith in brand as major of course worldwide too is Mr Rakesh kapoor, executive criteria for their choices. One important reason for vice president, global category development and an maintaining its position in top ten constantly is its executive committee member. Mr Kapoor is designated marketing strategy which involves innovative to become global CEO on 1st September 2011 after the advertisement shown on the Television regularly. retirement of Bart Betcher as the current CEO. He, Remember the punch line; “aapka Dettol kya kya karta XLRI alumni, is joining the Indian originated global hai”.CEO club following Indira Nooyi and Vikram Pandit.

Reckitt Bensicker seems to be very much focussed about The success of RB is majorly due to its innovative its plan to become, or perhaps maintain, its numero marketing ideas, a couple of years back the company uno position when it comes to producing household launched 'surakshit pariwar', an awareness campaign products and consumer healthcare /personal products.on hygiene. With a budget of just 5 crore,which

It is clearly visible that their strategy depends on primarily meant to spread awareness on hygiene in acquiring the already stabilised brands while family and school environment. As per Mr Chander

Mohan sethi, MD of RB India Ltd. He planned to reach maintaining the brand value of their existing products. about 12 lakhs new mother and 3 lakhs student under its RB could easily produce the analgesic balm and effective hand wash programme in school.face wash but it acquired SSL (producing and marketing

ultrasil) and Indian Paras pharmaceutical (MOOV). A major segment where RB, more likely Dettol can Marginal benefit seems to be far good than marginal make its presence felt is making and marketing cost involved in this deal. antiseptic self-adhesive bandages. There was a time

when Band-Aid by Johnson and Johnson ruled the Paras pharmaceuticals had already occupied Indian market. But at this point of time RB can encash upon its OTC drug market through the vast variety of products Dettol brand by making this product as no other major like MOOV, D'COLD, DERMICOOL, KRACK player is visible in the marketCREAM and ITCH GUARD.

Thus with the kind of power it enjoys in Indian RB bought Paras for INR 32.6 Billion which seems to be healthcare/personal care market. The day is not far away reasonable as Paras has a strong hold in Indian market.when it will start manufacturing even the

Though in February this year, when RB slashed the prescribed/scheduled drugs and will become the king of

margin of the retailers, HUL launched a special market market replacing Ranbaxy and cipla.

Rohit Sah

IIM Ranchi

Reckitt Benckiser: Becoming Indian healthcare giant


08

Brand TriviaMacintosh was named after a variety of apples which was Steve Jobs' favourite

During Recession, Almost each and every company tries pay premium to minimise the risk of a bad decision, so to trim all the business activities and the first thing they they tend to go for a brand. Recession helps in do is, reduction in the prices. This strategy may prove eradicating the smaller brands and gives the stronger fruitful to minify the impact of Recession, but this brands a good chance to be leader in the product strategy can eventually be detrimental not only to brand category. but to company also. The time of recession is in-fact the

When the economy is bearish, discounting the brand best time for a company and a brand to attract new

would make it even worse for the company. Historically consumers and make them loyal to gain in the long run.

companies who had taken care of their brands during Recession is the time when every -body tries to minimise

tough times gained higher share and loyalty in risk in each and every aspect of his/her life. It’s the time

comparison with lower price alternatives. Recession is a when consumers have less disposable income and

tough time for both the companies and consumer as he/she becomes more selective and prudent in his/her

both feels the pressure to restrict them-selves in terms of approach. It is the time when consumer becomes more

cash flows. Instead of looking recession as a bane it price- conscious and to minimise the risk they tend to go

should be looked as an opportunity to reassess the for brand which provides clear and pertinent value.

strategies that the company is following to earn the During Bull Economy, every company spends a large equity for brand. Decision should be focussed on amount of money on branding and marketing of their spending smartly rather than hardly.product. During recession

Customarily in the times of they go for cost cutting and

recession, companies try to do not invest much in

t ighten their belt but marketing activities and this

eventually they land up is the time where competitor

loosening their bonds with brand has the highest

the consumer. But they probability to attract new

forget the point that at the consumers and the loyal

time when other companies c o n s u m e r s o f t h e

are cutting back, currency competitor’s product. It is

and message go deeper and like “Running with your

farther.neighbour’s wife when he is in deep slumber”. Branding Recession may look like the is an exercise which requires worst time to be in the field regular commitment to ensure the good health of the of marketing; however it may be the golden opportunity company and its brand. In times of crisis one needs to to build or strengthen your brand. Companies who act extra careful for the maintenance of its brand. There is a diligently and play strategically will come out of the one famous quote which says “Take care of your brand recession strongly and weaker brands may not even exist and your brand will take care of you “. This is the time by the time economy bounce back. There is a golden when company needs to invest more in its brand to saying that “To be success full, one needs to be occupy large market share along with the heart and optimistic”. Look for opportunities and capitalise on the mind of consumer. situation which is superficially a hopeless one for others

and try to grab the low hanging fruit.History says that hard times are best times to move forward. This is the time when one can work hard to When the market weakens, management too often steal the market share and build the value for its brand. changes its approach from brand centric to price centric. This is the time when weaker brand doze off and the This leads to the beginning of vicious downward spiral other brands could stand higher in the crowd. The where the value of brand takes a swift ride towards a brand-value posses the power to alter the buying deep abyss. Proactive response is supposedly the only behaviour of consumer and definitely has the power to feasible and effective answer to recession which would gain the customer brand based equity. And when value help a brand to move upwards in the spiral ring and thus looks pertinent to consumer he/she usually are willing to help in creating a better brand equity.

Saurabh Ruhela

PGDM, T. A. Pai Management Institute

Recession: An Opportunity To Build Your Brand


09Brand TriviaBefore co-founding Apple, Steve Jobs worked for Atari.

Think of the words creativity, innovation and Five months later, Jobs resigns from Apple. The same passion, personify them to form a visual of a humanly year, he starts another company with the aim of figure and you have Steve Jobs springing up in your designing computers for educational purposes, called mind. The year 2011 witnessed the expiration of one the NeXT corporation.of the most beautiful minds of the 20th Century. The

1986- Launched in 1979, Pixar- the Graphics Group of visionary co-founder of Apple, Inc. died on October the Computer Division of Lucasfilms, is purchased 5,2011 of Pancreatic cancer. Let's take a look at some by Steve Jobs after paying a hefty amount to George of the key milestones of his life in chronological order:Lucas. It is then renamed as Pixar Animation Studios.

1974- Having dropped out of college, Steve Jobs 1996- Apple buys Jobs's NeXT, bringing him back to works at Atari Inc. as a video game designer. In 1974, Apple.he reconnects with Stephen Wozkiak. The logic

board, Apple-1, is built in a garage. To get enough 1997- In a period of slumping sales, the then CEO at s tar tup capital, Jobs sells his Volkswagen Apple, Gilbert Amelio, is ousted by the board of minibus.directors and Steve Jobs replaces him.

1976- Together with Wozniak, 1998- Jobs introduced the iMac, a curvy one-piece Jobs starts the company- Apple simply designed computer. The period witnesses Computers, Inc. The next year, Apple's return to profitability.Apple-II, A computer with a

fully functional keyboard 2001- Jobs introduces Apple's iPod- a series of

i s l a u n c h e d . T h i s portable media players which are essentially used to becomes very popular play music files or watch videos whilst offering an in schools. advantage of portability, and iTunes- a software that

enables a user to integrate the functions of media 1985- It is a period of

playing, downloading songs over the internet, disappointing sales organizing music files and videos with ease. He and in an unexpected persuades major recording companies to sell their turn of events, the music online via Apple's iTunes Music Store.board of directors at

Apple remove Jobs 2003- Jobs is diagnosed with a rare form of Pancreatic

from his position as Cancer.the head of the

Macintosh division. 2006- Pixar merges with The Walt Disney Co. making

Sahil Lohra

Demise of a Creative Genius

The year 2011 witnessed the nascence of several trends and the obsolescence of others. Some met success. Others bit dust. To add to this, something distinctly curious happened. The rise and demise of many bigwigs from various walks of life -Steve Jobs, Sachin Tendulkar or Anna Hazare, to name a few. Such people (who are, themselves, lessons in Business, Marketing and Inspiration on multiple levels) claimed 2011 as their very own. 'They Came, They Saw and They Conquered' - and a potpourri of these individuals, happenings, brands and fads distinguished 2011 as their year. Together, let us go on an exploratory journey. Let's find out what made 2011- The Year of The Titans.

Editorial Team

Brand.i, Master of International Business, Delhi University

2011: Year of the Titans


10Brand TriviaGoogle started as a project called 'Backrub'

Jobs the largest shareholder in Disney and serve as a take care of the day-to-day operations, Jobs appoints member of its board of directors. COO, Tim Cook to be responsible until Jobs's return.

On 24th August, Jobs resigns from his position of 2007- Jobs changes the name of the company to Apple's CEO leaving Cook to the title. He retains the Apple, Inc. Apple, Inc. releases its first smartphone, position of Chairman, however. On 5th October, a the iPhone which is welcomed in the market with day after the news of the release of the iPhone 4S, arms wide open. People wait in anticipation for its Steve Jobs passes away.release and flock in stores to be the first to own one.

At the Stanford University commencement 2008- Jobs loses significant weight, raising address in 2005, he urged the students to" the rumours that his cancer has returned. Stay hungry, stay foolish". i.e. One Investors demand full disclosure of his should always be driven and hungry for health status since the share prices were knowledge and continuously work towards somewhat related to Jobs's wellness. its attainment. Also, it would be imprudent

to consider himself to have had a 2009- Jobs attributes his weight loss to a

sufficient amount of knowledge and be hormonal imbalance. It is later learned

blinded by the illusion of being wise that he had a liver transplant.

enough, since the attainment of knowledge is an undying pursuit. Humility 2010- The first model of the iPad- a series of

and hunger, and not conceitedness and tablet computers, is launched. It becomes a huge contentment, pay in the long run.hit for Apple, Inc, selling about 15 million units in

nine months. Steve Jobs indeed lived a productive and beautifully eventful life, becoming a source of inspiration for his

2011- In January, Jobs writes a memo to the Apple contemporaries and the generations to come.employees stating that he would be taking a leave of

absence due to an unspecified medical condition. To

During the August of 2011, more than a billion itself. A bill, which was rotting in some government tongues in India swore by Anna Hazare. The 75 year office’s file cabinet for more than 40 years came into old Gandhian, whose ideas of retaliating against lime light within 2 weeks and got support from more corruption were accepted and welcomed with open than a billion people. Brand Anna turned out to be a arms by the Indian populace, not only instigated a hit overseas as well, when nonviolence protest like nationwide anti-corruption movement but also occupy Wall Street and a similar protest in Pakistan became a brand in himself . The T-shirts, Gandhi caps were seemingly inspired by the Anna Hazare and other merchandise which sold like hot cakes were campaign.apparently inconsequential in front of the phenomenal amount of media attention he received. During the first two weeks, almost 80% of the top 10 national news channels devoted most of their air time to his campaign. Many brands tried to cash in on the Anna-fever that had gripped the entire nation. Amul even released an Amul Hit on Anna Hazare’s fast. In the advertisements of the other brand as well, direct or indirect allusions to Anna or the anti-corruption movement were widespread. However, the biggest brand Anna turned out to be was for the Civil Society

Anna Phenomenon Himanshu Chauhan


11Brand TriviaNike started as Blue Ribbon Sports.

Yes you know what I am talking about. One of the the incident of Sharad Pawar getting attacked. CNN biggest phenomenon of twenty eleven, the pre-release International termed it as the 'song of the year' and leaked version of the 'soup song', sung by the son in law Chennai Traffic Police released ads using the Kolaveri of Rajnikanth, took everyone by storm. In no time, it fever asking people to drive safely.[pic] became one of the most watched videos on Youtube.

But why are we talking And the meter has touched 36 Mn ! But 'Why this Viral about it in a marketing Viral di ?' magazine? This is just an

Many experts like Javed Akhtar criticized it while many example to prove wrong have welcomed it . But most give credit to the catchy those who think Social tune by debutante Anirudh who, some say, is the "next Media is just a secondary Rahman in making", to the hip and funny lyrics by or supporting medium, Dhanush who touched not only the regional audience which,in fact, is the but also the universal audience with his rhythm correct medium where all brands English and Tamil lyrics, and most importantly to the should concentrate. This power of social media. i s a n e x a m p l e h o w

powerful social media has Every other day we see a new version of the song, with become and what its Sonu Niigaam also making his son sing the song, (which reach is. The return on again became viral and a hit on the web), a video investment is infinity ! Apparently Aishwarya Dhanush showing Japanese dancers performing on the song, the director of '3' , doesn't need to spend too much on some regional versions and also a version which mocked the marketing of the film. Give it a thought .

While other sports are still struggling to make it to the advertising pie- which rose from 13% in 2010 to 20% big stage, in 2011, Cricket almost effortlessly outdid in 2011 of a Rs. 12,000 Crore plus market, which is each and every one of those. Be it the maiden Formula much bigger than media like radio, internet and 1 race at the Gautam Buddha outdoors. The rise in share from International Circuit or the FIFA 13% to 20% itself shows more than world cup, the ICC Cricket World 50% growth in advertising. Cup 2011 alone raked in more

Corporations like Maruti Suzuki moolah from just the advertisers. spent around 90% of their overall And then to top it off, when we sports advertising budget only on account for the figures from IPL 4 cricket while Hyundai went a step and other Cricket Tours & Series- ahead and spent its entire the figure is unimaginable.advertising budget on cricket

Cricket has always been the advertising and related events; be it favourite son of the Indian ATL or BTL. This kind of advertisers and 2011 can indeed be advertiser-mania actually makes termed as the 'Year of Cricket'. The sense when we see it in light of the inordinate amount of money that fact that 92% of the male advertisers spent on various population of the country is cricketing series and events is quite involved in cricket in some form or evident by a comparison of the the other and it's a favourite past share of cricket in the TV

Cricket ManiaHimanshu Chauhan

Impact of Cricket World Cup 2011 on TV channels

GRPs

Genre Pre World

Cup

World Cup

Season '11

Difference

English business news

35 32 -7%

English GEC 44 37 -15%

English movies

181 191 6%

English news 68 74 9%

ESPN 39 177 349%

Hindi business news

33 31 -4%

Hindi GEC 6594 6174 -6%

Hindi movies 2397 2271 -5%

Hindi news genre 784 918 17%

Infotainment 267 254 -5%

Kids 1351 1371 1%

Music genre 493 509 3%

Star Cricket 122 1464 1099%

Star Sports 35 898 2496%

Source : TAM, CS$+

Why this Viral Viral Di ?Ankit Soni


12Brand TriviaAdidas and Puma were started by the Dassler Brothers Adolf and Rudolf respectively.

time of 48% of the Indian population. sports channels during the ICC Cricket World Cup.

Upon comparison with the other sports events, the However, the recent failures of the Indian Cricket mammoth-like magnitude of cricketing events can be team on tours of England and Australia have had a ascertained from the fact that n e g a t i v e i m p a c t o n t h e while the opening ceremony of viewership of cricket. Meanwhile Common Wealth Games 2010 other sports like boxing, F1 and was watched by 11.6 million hockey are swiftly catching up. viewers in the metros via DD But the fact is, cricket still National and DD Sports, and remains the king when it comes FIFA World Cup Final garnered a to getting a share from the viewership of 1.5 million viewers, advertising revenue's pie and it's the ICC Cricket world cup reaped a long way before any other sport in a viewership of more than 150 shall be in a position to threaten million viewers with TVRs going to dethrone cricket or even as high as 23.21 for the India- appear to be anywhere close. Pakistan match. Apart from sky Until then, other sports will have touching TVRs, sports channels-mainly the ones to kneel before the hitherto undisputed dominion of associated solely with cricket, ate up the GRPs of the cricket in the advertisement world with bowed heads other channels. The GRPs took a gigantic leap for and folded hands!

Little did 23 year old Shonan Kothari know about the is another example of Buzz Marketing, since it has the future of Flash Mobs before organizing one at the CST longest retention. station on the occasion of the anniversary of the

Other companies like Nokia, Zee TV for their show 'Dance India Dance' and others, also followed suit and organized some 'successful' Flash Mobs. But the question is: "Will this golden egg laying hen be butchered too soon?"

There have been instances of 'Failed' Flash Mobs in 2011, like the one in Janpath Market in Delhi where Police played the spoil sport. We just want to wish Good Luck and hope that it does not turn out like a 'Himesh Reshammiya' in the making. (No Pun Intended! )

terrorist attacks in Mumbai. The video went viral immediately and became a hit online. People were amused to see a group jiving on the 'Rang de Basanti' song. Since then Flash Mob has taken the marketing world by storm. Or has it?

Exhibit A : Some people pick a fight in the Ambience Mall in Gurgaon, asking each other about 'The Don' and suddenly , start performing on a song from Shahrukh Khan starrer 'Don'. Experts suggest that this

Ankit Soni

Flash Mobbed !


13Brand TriviaVimal Suitings was named after Dhirubhai Ambani's elder brother's son.

“You can’t bore people into buying your product – just as “marketing” is often used to mean “sales” or you can only interest them”. Jim Stengel, Global “advertising”. A brand is always a complex rnixture of Marketing Officer P&G attributes: packaging, visual identity and so on and

advertising create its voice, but the actual personality It is estimated that 75% of new products fail within of a brand only exists in the mind of the consumer. their first year on the supermarket shelf (BUISSON 1995). Consequently, considerable resources invested Brands differentiate products and represent a in marketing are squandered. promise of value; they provoke beliefs, evoke

emotions and prompt behaviours. Assessing a brand’s Branding has been one of the most overused and image and how it compares to its competitors’ images misused terms in marketing communications today. is a necessary step in designing the marketing strategy. Just as “marketing” is often used to mean “sales” or Aaker (1991, 1996) proposed that brand “advertising”, branding seems to have a associations are anything linked in different definition to almost every memory to a brand. A distinctive person who utters it. “Our senses brand personality can help create are our most intimate link with a set of unique and favourable the living land, the primary associations in consumer way the earth has of memory and thus build influencing our moods and enhance brand and guiding our actions” equity (Keller, 1993; (Abram: 2001). Sensory Johnson et al., 2000; branding comes in Phau and Lau, 2000). favor to save marketers Sensory branding also from the troubled called Multisensory w a t e r s . S e n s o r y marketing is becoming branding is said to be a an important method p o w e r f u l t o o l t o o f m a r k e t i n g , engage customers by according to Kristin the integration of our Nauth, author of a study, senses which is used to “ M u l t i s e n s o r y evoke, measure, analyze M a r k e t i n g ” . " M a n y and interpret reactions to companies are finding that those character i s t i c s o f when they engage consumers products. with multiple sensory touch-points

not just the traditional sensory The usage of our five senses to evaluate channels of sight or hearing they can enhance brands are being used widely in the fields of

consumers' emotional connection with their cosmetic industry, textile industry, chemical products and brands," Nauth explains. Sensory industry, packaging industry, sportive product design evaluation is a scientific discipline used to evoke and automobile industry.measure, analyse and interpret reactions to those characteristics of products or materials as they are Key words: Multi - Sensory branding, Memory – perceived by the sense of sight, smell, taste and based branding, Our 5 senses.hearing. In turn, Sensory marketing is a very powerful

Introduction because it offers instant gratification.

Branding has to be one of the most overused and Today few companies have realised that they need to misused terms in marketing communications today, use sensory mediums for building a distinctive brand

Megha Rathod

School of Management, SRM University

Sensory Branding And Its Importance In Marketing

SMELL

SIGHT

SOUND

TOUCH

TASTE

S e n s o r y

Branding


14Brand TriviaITC was founded as the Imperial Tobacco Company.

Case 1: One of the finest and oldest examples personality. The usage of our five senses: vision, experienced was created by Singapore Airlines in gustation, olfaction, touch and audition to evaluate

brands are being used widely in the fields of cosmetic industry, textile industry, chemical industry, packaging industry, sportive product design and automobile industry. In all these industry sectors, automobile industry plays some leading role in the development of sensory techniques in product evaluation.

So what are the senses exactly? “The world is a construct; the brain builds based on the sensory information it’s given, and the information is only a small part of all that’s available.” (Acker¬man, 1995: 304) “Our senses are our most intimate link with the living land, the primary way the earth has of influencing our moods and guiding our actions” (Abram: 2001). Interestingly, Rivlin and Gravelle go

1990’s as part of their sensory branding experience. as far as saying that we have up to seventeen senses!

Singapore Airlines introduced an aroma by the name of Stefan Florida Waters, which was specifically Multisensory marketing – the new eraformulated to be used as the scent in the flight

Every brand strives to impress its audience. attendants perfume; which was blended into the hot Companies spend inordinate amounts of money to towels served before takeoff and generally suffused create or alter two things: Recognition and onto the interiors of every Singapore Airlines aircraft Perception. This, in turn, can only be perceived to create a distinct brand experience, which was through one of our five senses. All knowledge, in fact, instantly identified by passengers every time they is taken in through the eyes, ears, nose, mouth and boarded a Singapore Airlines flight. The patented nervous system. That information is stored aroma has become unique and very distinct differently in the mind: some of it is sent straight to trademark of Singapore Airlines ever since. long-term memory, while other units of information

SOUND: Sound affects our mood and psychological attach themselves to nodes along pathways of state, alerts us to danger and promotes peace of mind. constructed associations – leading to other memories, Studies revealed that consumers eat faster and emotions, feelings, etc.consume less with a loud volume and fast tempo

There are powerful brands like Coca Cola, Harley music. Another research from Smith & Curnow Davidson, Apple Computers, Singapore Airlines, (1966) revealed that in a point of sales, customer BMW, who have learned how to make their brands adopts his walking speed according to the tempo of live in the minds of the customers. The brand must the music..least deliver their benefits because no amount of

Case 2: In the 1970s, IBM launched a silent typewriter dressing up will make up for the lack. But distinctive that was rejected by users who felt uncomfortable brands deliver full sensory and emotional experience. with the new quiet machine. As a result, IBM added

SMELL: Martin Lindstrom puts forth that that only electronic sounds to replace the natural noise it had 3% of Fortune 1000 companies have given thought to worked to eliminate.When sound is used consciously using smell in their marketing or branding, despite a firm has great opportunities to create a signature the claim that 75% of our emotions are generated by sound that characterises its brand. It is possible to use what we smell. A human being can remember more and register a legal sound brand. than 10,000 different scents and the perception of a

Case 3: It took computer giant Microsoft eighteen scent experienced earlier is enough for us to associate months to develop the Windows Vista starts up it with earlier memories.


15Brand TriviaThe 'T' in T-Series stands for 'Trishul'

Case 6: Tesco had launched a singing sandwich. It was sound. Microsoft looked for a clear, simple sound that a limited edition item for the World Cup - a jalapeno would reflect the rhythm of the words “Windows chicken sandwich in a wrapper that sang “Ole Ole Vista with duration of four seconds. Four is also the Ole” to the consumer when they unwrap the cover. number of colours in the visual logotype and

Windows Vista. Bearing in mind that the sound TOUCH: Studies have shown that “compared to un-would be played on millions of computer every day, it massaged babies, massaged babies gain weight as much as 50 percent faster! Touch creates familiarity with the store or the product.

Case 7: At one point Rolls Royce started getting complaints about their new models not quite living up to their illustrious predecessors. On research they identified the only difference between the old and new models was the smell and feel. The interiors of older ‘Rollers’ smelt of natural substances like wood, leather, Hessian and wool. Modern safety regulations forced the company to replace natural substances by foams and plastics. The only way that they could

was essential to create a pleasant sound experience. recapture that essence was to artificially mimic it and they did it.Case 4: Kellogg’s, the breakfast cereal believed that

taste is affected by the textures and flavour of the food. The everlasting experience every marketer must useHence their research team created a highly distinctive crunchy sensation for their breakfast cereals. They Martin Lindstrom says “If you use one sense, you related their success with the crunchiness consumers activate one part of your brain. The more senses we felt in their mouth on consumption of their product. use, the more we engage the brain”. Sensory

SIGHT: Most of our decisions in daily life are based upon sight impressions. Design, aesthetics, lighting, and beauty are crucial to creating our fellow-feeling with brand.

Case 5: Steve Jobs of Apple marketing aims at creating an “experience” and

stressed the importance of design as a competitive forcing yourself to excogitate the experience resulted

advantage as early as 198. Design was seen as a way to out of the product usage by catering to the five senses.

differentiate the Macintosh as a computer from the competitors PC’s. Now a day’s Apple is seen as one of Ultimately it is only through the sensory experience the most innovative and forward looking companies that customers finally decide which product or brand in the world and is well known for the novel, bold to choose, whether it will be just another transaction design of its products such as iPhone, iPod and iMac. or a lifelong relationship. The role of sensory

evaluation has changed considerably over the years. TASTE: The taste sense is one of our most distinct

From product conception to post – launch emotional senses. A taste strategy differentiates a

monitoring, sensory professionals can be called upon brand and offers surplus value to customers. Taste can

to inform decision making during the stages of impress, and express itself and leave imprints in being

products life cycle. From a marketing perspective, attractive to the customer. Bookstores sell coffee,

sensory and consumer testing ensures that sensory clothing stores sell food, and petroleum companies

proper t ie s work in synergy wi th brand sell candies.

communication and advertising.


16Brand TriviaHindustan Motors' Ambassador was based on the Morris Oxford Car's model.

The contribution of tourism to foreign exchange In order to better understand the tourism market, let earnings of a country is well-known to all. But, there us look at one of a fundamental models developed by are a myriad of other important benefits this industry can provide such as employment generation, poverty alleviation and sustainable human development. It promotes national integration and international understanding and boosts local handicrafts and cultural activities.

It was Anu Malhotra, a documentary film maker, whose work in the 90s put India firmly on the world tourism map. Anu Malhotra had launched the experiential television reality show on travel for the first time in India called ‘Namaste India’. She followed it up with similar works and some award-winning

Butler in 1980 called the ‘Tourism Life Cycle model’. documentaries on India that became popular both in Similar on the lines of product life cycle concept that India and abroad. Gradually, several states and the we all know, the number of visitors grow in the initial central government started to realise the importance of stages following the curve shown in the figure. India, as branding in tourism and the use of TV as a superior an emerging economy, is still believed to be in its media channel for promotion.development phase. Yet, care must be taken with areas

With this backdrop, let us look at some findings from that might become commonplace over a period of literature. It has been found that visitors’ choices of time. The challenge for tourism marketers is to keep destinations are based on the degree to which they the novelty factor intact by way of devising newer generate favourable images (Gartner, 1989). promotional strategies like highlighting the cultural According to Morgan and Pritchard (2000), ‘the battle myths, fantasies and legends associated with places. for customers in the tourism industry will be fought, The idea is to remain growing or enter into the not over price but over the hearts and minds – in rejuvenation phase if consolidation takes place and essence branding… will be the key to success.’ Such avoid the decline. research findings have made destination branding all

In conclusion, India’s tourism industry is set to grow the more important. Lot of B-schools have begun to rapidly both in terms of domestic and International offer courses on tourism marketing in the recent times.visitors. Rising income levels coupled with

The basic marketing principle of communicating value investments in infrastructure and hospitality sectors to the customer in such a way that the perceived would further give a fillip to the tourism sector. benefits are more than the perceived costs still holds According to the latest Tourism Satellite Accounting good. The key lies in the subtle but crucial brand (TSA) research released by the World Travel and elements like a catchy tagline, an attractive logo etc. Tourism Council (WTTC) and its strategic partner and the art of optimally using the media-mix for Accenture, India's travel and tourism industry is promotion. Kerala, for instance, has successfully used expected to generate approximately US$ 275.5 billion tourism marketing to create an international brand for by 2018. With other nations doing intensive work in itself. What is note-worthy is its use of social media tourism area it’s high time that we streamline our channels like Facebook to augment its promotional efforts towards further boosting this rewarding sector. efforts. Besides establishing itself as a hot international With a country as diverse in its culture and as rich in its tourist destination it has also developed the unique values, it would not be too difficult for us to become a value proposition of Kerala therapy and the famous top international tourist destination spot in the near backwaters with a popular branding “God’s own future. country”.

Raghu & Praveen

IIM Lucknow

Tourism Marketing


17Brand TriviaESPN stands for Entertainment Sports Programming Network.

Review : Vodafone blue Advertisement which arises in my mind:

Product: Vodafone has launched a new mobile phone Is the product worth the effort?especially facebook devotees who perhaps literally live

Is this advertisement a right one for the target their lives on the social networking site. The audience?QWERTY pad phone is enabled with facebook button

for easier access. It is priced at Rs. 4950, targeted at With highly competitive mobile phone market with

young facebook users.the likes of Nokia, Samsung, LG, Micromax, etc. Vodafone has moved in with a value for money phone Campaign:positioned as “the Facebook phone”. But with competition fierce in the market, are there enough buyers for a phone positioned as facebook enabled phone? With pricing of around Rs. 5000, it will face stiff competition from major players having phones with more features in the price range. Also these manufacturers are tried and tested known for quality and performance. Moreover, the phone is manufactured by Alcatel, a little known company and

So with their target audience of youth in mind Vodafone has gone for a Broadway theme. Advertisement is made by ad agency - O&M. The 130 second ad shows a young boy describing various activities on facebook with Broadway backdrop.

Analysis:

Advertisement is refreshing. It stands out of current ads running on television. Even after its unusual long duration of 130 second it has been able to capture audience’s imagination and successfully brings alive facebook and its features.

The ad shows a protagonist (young boy), who is without much credibility in India. The question arises always online on the social networking site. It that Would Indian consumer which goes for high manages to depict various facebook activities such as credible and high performance brands such as Nokia notifications, friend requests, photo updates, gaming or Samsung would purchase the Vodafone Blue? etc. It manages to bind audience with ever changing

scenes and sequences and a very engaging and Also other aspect that catches my attention is that it is cheerful background beats. also positioned as value for money product. The

advertisement made gives more elite feel which may The Last word…be a mismatch with what the product stands for – value for money.The advertisement is nothing short of awesome which

may revolutionize ad making in India. But questions

Shubham Shrivastava

Xavier Institute of Management, Bhubaneswar

Breakthrough or Mismatch?


18Brand TriviaIn order to raise enough money to buy parts and build the first few orders of the Apple I, Steve Jobs sold his Volkswagen van and Wozniak, then an HP employee, sold his Hewlett-Packard 65 scientific calculator for $500.

I had a new Altec Lansing 2.1 speaker system installed Trade Mogul, the first thing he would do is to register. today. Though it was priced at Rs.1047 on As soon as he has registered, he will be given a referral Flipkart.com I had to pay only Rs.47. The reason was link and provided with an incentive of a gift hamper in because I had a voucher worth Rs.1000. How I case he finishes as the top referrer. He would then post acquired it was of more importance- I was among the the link on his “wall” or “tweet” or send an e-mail to top referrers of the annual online trading event Trade his entire list of contacts. It was only at this point of Mogul organized by Futures First. time that the referee (aware or unaware of the event)

would follow the link and the circle goes on. The rest Now if you take a look at the number of participants of of the methods/reasons followed next.the event it comes to around 10000 or perhaps even more (P.S. My own rank is around 7000 currently and That was the story of Trade Mogul, and now moving this is an approximate guess). Futures First does not on to a more general perspective, almost everyone has use the conventional print or electronic media for its been a referrer or a referee on a daily basis. Noticed or advertising. Then how did it reach out to so many unnoticed, as it goes, everyone at some point of participants around the country? having a discussion has recommended something or

the other to someone. Be it a movie Futures First has been operational which someone adored or a book in India since the last six years which someone liked, a and has created a brand r e s t a u r a n t w h e r e image for itself amongst someone has been young and aggressive served nicely or a traders. However glitzy mall or a “gol-this year’s Trade gappa walah” at the Mogul is only in its corner of a street - it second season in has already been India. The first done.season in itself was a huge success. In its The grapevine is second edition, it has considered to be one of grown bigger. Some of the the most reliable and significant methods/reasons trusted sources of gathering which helped it to reach out to its information about anything and “prospective employees” are: everything. People experience something

and whatever the experience turns out to be- good or The opportunity of getting a Pre-Placement Interview bad- they share it with the next person. This is the and the lucrative rewards. simplest way of Referral Marketing (which might turn

out to be negative as well). The next type of Referral The brand image of Futures First which it has Marketing is the one which I had described through successfully leveraged.the Trade Mogul example- referral through online or social media. This type is a more formal way of The ultimate utilization of social networking media Referral Marketing where the referrer gets some e.g. Facebook, Twitter.incentive for referring.

The most significant one which helped it to reach the The Referral Marketing System has become all the masses: Its Referral marketing strategy.more important in today’s business world because of

Now, I would like to substantiate the reason for the the benefits it carries along with itself:Referral Marketing Strategy being the most

Referrals do not involve direct selling. Instead a significant factor. Once any one comes to know about

Akashdeep Sah

IIM Ranchi

Referral Marketing: Simpler Yet Smarter


19Brand TriviaThe brand name Dabur is derived from the words 'Da' for “Daktar‟ or “Doctor‟ and 'bur' from Burman after the founder Dr. S K Burman

As of Apr 2010, the Referral Program of Dropbox with satisfied customer "sells" the product and services. If a 2 sided incentives permanently increased signups by satisfied customer tells a close friend about a certain 60%. This Data was provided by Drew Houston in his business, then their trust is immediately transferred to Talk at the Startup Lessons Learned conference in the company, irrespective of whether he has earlier 2010.heard about it or not.

Similarly, Okabashi started their campaign with Referral Marketing costs next to nothing. Generating ReferralCandy (a provider of Customer Referral prospects from targeted advertising, direct mails, Program application to help online stores increase telephone calls, and other methods have their own sales) in March 2011 and started to see increase in level of effectiveness. But the cost of getting new sales within a week. “We have been really impressed with the success and growth that we have experienced” says Hadi Irvani, Director of e-Commerce at Okabashi.

These success stories showcase that if one does not harness the simple but cost-effective method of Referral Marketing for his business, then he is leaving tons of money on the table.

“A referred customer is 400% more likely to buy your product and service than someone who lands on your page cold.”- Nielsen Media.

“A recent survey found that more than half (53%) of Internet users had visited websites referred by friends or family members in the previous 30 days.”- eMarketer.com

clients from referrals (in terms of both time and “The recommendation of someone else remains the money) is far less expensive. most trusted source of information when consumers

decide which product or services to buy.”- Nielsen A good Referral Marketing system can multiply Media.quickly.

“The most powerful form of business marketing, by Studies suggest that referred customers are both more far, is direct personal contact and referrals from profitable and loyal than normal customers.others. In fact, 80% of business transaction can be traced to one or both of these networking methods.”-Some examples of successful Referral Marketing Pittsburgh Post-Gazette.Programs are the Dropbox Referral Program in 2009

and the Okabashi Referral Program in March 2011:


20Brand TriviaApple's first slogan: “Byte into an Apple.”

Rewinding the clock some 10 months; I recall my exceptions not the rule. There is no silver bullet to marketing classes taught by Mr. Ramasastry. building strong, profitable brands. Every brand is Positioning, segmenting, target market segment. It was different as are its customers. Some brands are B2B, all fun to learn ,except one thing which repeatedly kept some B2C. But there is a process to building a strong my inquiring mind busy: how in a span of around 3 profitable brand. It requires a focus on research, years of work, I never heard all this things, why organizational excellence, planning, personalization, sometimes I’m not able to relate this with my previous retention and doing business on customer terms. It’s jobs, Why the whole thing is not a gospel truth as not particularly sexy and won’t see many brands staring projected by professors. down from billboards, much to the delight of brand

owners and ad agencies, but it will go a long way to Talking about positioning I didn’t understand how a building strong, profitable brands. Because without concept developed almost 45 years ago is coping with profitability, a brand is irrelevant. Let me give you some the digital age. What did it have to do with the digital data to look upon-world in which we work in today? How does a company position a product in a small, flat, multi-cultural, According to Industry week magazine, 70% of today’s dynamic, technology driven world like the one we live manufactured goods will be obsolete in six years. There in today? I then thought about awareness and realized are estimated to be more than 30,000 new product that I am aware of numerous brands, many of which I introductions in the US alone every year, just in the never engage with. I reasoned that many of those packaged goods market. According to A C Nielsen, up brands were spending a fortune making me aware of to 90% of products fail. This means that as many as them and hoping that I would buy something from 27,000 of those new products will fail.them.

Despite approximately US$1.5 trillion spent on But things are different now. I realized that we are now marketing annually and over US$500 million spent on in the “Customer Economy.” Now, companies no advertising alone in the US, the annual US based “Most longer have the exclusivity to make the rules and Memorable New Product Launch Survey 2007″, found control information by “positioning” products or that unaided, 77% of respondents could not name one promoting “brand equity” through advertising and PR of the top 50 new products of 2007, even if it was a like they did in the mass economy. I realized that the strong well recognized brand.balance of power has shifted from the seller to the

The development of a positioning strategy takes time buyer. Now when the ads come on (assuming the and the communication of that ‘position’ will be the consumer is watching TV), he reaches for the remote responsibility of an advertising agency and that agency and changes channel. Indeed with up to umpteen will, generally speaking use mass media to messages being received every day, and many of those communicate the position.messages making absurd promises, customers have

learnt to ‘tune out’ and actually ignore many of the With such short life times and high failure rates, isn’t it messages they receive. t i m e c o m p a n i e s r e v i e w e d t h e

tools/tactics/strategies/channels etc that they are using I also noticed that customers are having more and more to build brands? Don’t they owe it to their shareholders, influence over the design and manufacture of products investors, customers, the environment to do and the ultimate success of products and failure of something about this?others. I noticed that if products did not meet

individual customer requirements, customers would I know it is hard to let go and there will be a lot of shun those products, irrespective of what the ads resistance to what I have written. After all, so much claimed. I felt that in this new customer economy, effort by so many people has gone into learning about companies playing by mass-economy rules are going to positioning. But the world has changed. More do more than lose the game. They are not even going to importantly, consumers have changed. And marketers be given the chance to compete. should acknowledge this and change with it.Don’t get me wrong, I do think that positioning is a tool Communications and the way consumers live have that was, in its time and for many products, a very good changed a lot over the last 40 years. Isn’t it time tool. But I don’t think it has a role to play in today’s Branding and the way brands are built and the tools customer driven economy. There may be some used to build those brands changed too?exceptions such as in the destination branding sector and some soft drinks may benefit but these are the

jayant desai

Student MBA

Positioning: Erstwhile or Still A Relevant Strategy??


21Brand TriviaApple was established on April Fools Day.

Let me start by asking a rhetorical question:"What was market by manufacturing a record number of the name of the phone that you heard of, first in your Smartphones in 2011, but lagged in overall production life?" I know that the majority of respondents will of complete mobile range than Nokia. Samsung gave a answer with "some, or the other model of Nokia". What blow to their own sales record of 2010 by selling 300 does this prove? Practically everything you are going to million phones in 2011. Samsung marked an read in the following paragraphs.

Now it will be boring and pointless to really dig into the history of Nokia and tell you how revolutionary Nokia's products were and how effectively they took the biggest pie of Indian handset market as early as they entered India. That will indeed be pointless, it's so obvious. What would really be interesting is to know how a giant like Nokia lost its grasp in a matter of years or how Samsung did what was unimaginable as recently as 2008 - challenge the monopoly of Nokia.

Look at these figures for handset market share in year 2008. Nokia stood at top with a market share of 59.5%, followed by Sony(8.1%), Samsung(7%) and Motorola(5.9%). Nokia simply lead with simplicity. Its astounding increase (21.7) in their revenue from designs were elegant, simple to use, durable and Indian market which counts around 5,720 crore in the available for every price point(just to be fair, they still fiscal year 2010-2011. One of the biggest reasons for are). Samsung's success was to make quality touch phones

available for everyone, which Nokia failed to do.Now let's look at the market figures for handset market share in year 2011. Nokia still stood at the top with What really caught Nokia by surprise was the market share of 39% followed by Samsung(17.2%), popularity of Apps in android. This really shook the Micromax(6.9%), Blackberry (5.9%), LG(5.5%) and core of Nokia strategies. Nokia never imagined in its Sony(2.1%). Just a simple glance on this data gives you wildest dreams that they would be rejected in the a clear picture. market just because they did not support Angry Birds.

Nokia phones were never bad but with android on role What changed between 2008 and 2011 that made they became boring. Nokia also failed to see the Nokia lose its monopoly? What made Micromax the potential of facebook and other social media in time.third largest handset maker in India? Why a player like

Sony not only failed to increase its share but instead The unprecedented rise in feature phones from small became the biggest loser in the game? players like Micromax, Karbonn, Spice, LAVA etc. ate

what was left of Nokia's share after the Android attack. Firstly, I think, the biggest enemy of Nokia is Nokia They literally flooded the markets with authentic itself. Its Resistance to change and to look for new feature packed cheap phones. avenues stopped it from reacting to a change called

ANDROID. It virtually turned a blind eye to the Nokia was a leader, probably that's why it survived the possibilities of android and stuck to its patent Symbian first wave of Android attack. Sony, Motorola- which OS. It has come up with LUMIA-a windows based were once sharks, are now nothing more than mere fish phone, when it's a little too late. in the sea.

At the same time, while Nokia was busy being What will happen to the leadership of Nokia? Will it overconfident, Samsung and other players grabbed the survive the fresh waves of attacks from Android? opportunity and realized the potential of Android Would LUMIA make a difference or is it really too late? phones in the Smart Phone market.

Only time will tell. However one thing is for sure. It's a Samsung proved its eminence in the Smartphone long road to home for Nokia.

Sanjay Raturi

Master of International Business, Delhi University

Nokia Vs Samsung; Battle royale


22Brand TriviaFirst ATM in India was established by the HSBC bank.

TThere are two phenomena things driving the shield of logic, the brand owns you playing small curiosity of every MBA candidate – the first have beautiful games with your mind showing a new world always been about strategy making, be it finances, a place very close to you and yet just above the line of marketing, operation or the general corporate impossibility. It thrives on those desires, that you strategy making. The other thing that has been the cannot fulfill and yet you treasure them deep in the essence of all products and every marketing campaign hearts with a hope that someday you might. It makes is brand, the ultimate perception amongst all you believe in the cause that seems very close to consumers and marketers. So what makes a brand achieve and yet when you go after them they grow such a powerful tool, what makes it such a glamorous farther and farther away. The fact is the success of any magnet, that even the cautious minds just let the cult brand or power brand is in the emotion it targets,

it's in the brands' ability to generate an involvement within you. Strong brands target the meta-needs that cannot be satisfied, where a person would always have that urge to go a little further.

Consider the example of Reebok, a brand well known to all of us. What makes it so special? It's not the shoes it markets, one can get those shoes from a number of other manufacturers. It's about the aspect of “I” that it projects. Reebok as a brand doesn't make you contest with others, but with yourself. It caters to your need of being better than before, doing for your own reasons and not for others. This is the reason why you would never find an advertisement of Reebok showing individual competition, but most would be about running, jogging and weight lifting each representing the belief – “I do it for me, I am Reebok”.

And needless to say, everyone is well aware of the most fascination of the brand flow through them if not popular Reebok caption saying the same “I am what I consciously then sub consciously? am”. Now it feeds on your need of your desire for self

betterment and it knows that no matter how much Brands control the power of dreams and fascination. you work your perception of yourself can never be It targets your innermost desires and shows you a perfect, there would always be a need to perfect window to the world of such fascination. It appeals to oneself and it is this feeling that makes people relate to your heart more than to your brain, it appeals to your Reebok making it an everlasting brand. emotions right to the heart and talks to you. It says “I

am the brand, I am the desire you always dreamed, I The truth is that brand's influence is nothing but an am the desire that you never fulfilled, think and think imagery of how a person perceives himself, his desires because I am the one that you always wanted to be, I and his fears are what fuel the belief and the relation am the brand that defines your thoughts, I am the with the brand. Brands are all about the human brand that is made for you”. And once the brand psychology and how to capitalize on it while penetrates your mind and implants these lines into embedding a distinct yet powerful image on to the you, you are no longer the same rational person. At minds of the public forming the essence that he carries this juncture all the logic of the world takes a sideline along forever. Brands are all about you and meant for and you go deep into that vicarious pleasure that the you, it's nothing a powerful play of mind.brand strongly projects. Once it penetrates your outer

Vishal Vishy

PGDM, T. A. Pai Management Institute

Brands: It's About You

quote

indicating

the belief

that you are

working for

yourself, it's

not a

competition.

Take it easy

and enjoy the

pleasure of it.

Again showing

the emphasis

on “I” and my

pleasure

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MARCOM the Marketing Cell of MIB(Master of International Business), Faculty of Commerce & Business, Delhi School of Economics is a completely student run cell incorporated to

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integrated marketing approach

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referral marketing strategy

marketing communications today

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modern retail