im project by mudassir

8/2/2019 IM PROJECT by Mudassir

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RUSSIAN INDUSTRY

After considering the aforementioned factors, one might easily conclude that Russia offersthe greatest near to mid-term potential as an export target. Although a great deal is knownabout most of the factors affecting Russia's market environment and advertising capabilities,there has been little empirical research on the cultural context of its consumer behavior. Mostcultural research conducted outside the United States and Western Europe has been primarilyin the Far East (Maheswaran & Shavitt, 2000). A review of cross-cultural advertising andmarketing studies published in 13 empirically-based advertising and marketing periodicalsbetween 1980 and 2001 found that only two studies examined the differences of US-Russiancultural values and none examined the relationship between the Russian culture andadvertising appeals (Emery & Rhodes, 2002). As such, the purpose of this study is threefold:(1) examine the differences in effectiveness of advertising appeals in the United States and

Russia, (2) determine whether an understanding of Russia's cultural dimensions offers aninsight to effective appeals, and (3) recommend various advertising appeals to thosecompanies wishing to export their goods and services to Russia.

BACKGROUND

Russia as an Export Target

Russia is the developing nation receiving the most attention of exporters on a dollar percapita basis (World Imports, 2002). Further, attention appears to be accelerating. In 2001,

Russia increased its value of imports by 20%; the highest increase in the world (WorldImports, 2002). This should not come as a surprise. President Putin is doing everythingwithin his power to make Russia more attractive to foreign imports, including cutting tariffs,cutting government red tape and lobbying to get Russia accepted into international tradeorganizations (Belton, 2002). Further, the Russian economy has enjoyed a boom the last twoyears because of high world prices for its oil and a rise in domestic production, (IndicatorsGood, 2002). The purchasing power parity (PPP) of Russia is the highest among thedeveloping nations (e.g., Russia has a PPP of $8,030 as compared to $3,940 and $2,390 ofChina and India respectively) (World Bank, 1999). The World Bank liberalization indexbased on three separate indicators-the extent of domestic market liberalization, foreign tradeliberalization, and enterprise privatization and banking reforms-gives Russia a healthy index

rating of .83 compared to China's index of .66 (International Monetary Fund, 2000). TheHeritage Foundation's index of economic freedom based on 10 indicators, such as the extentto which the government intervenes in the economy, suggests that Russia is the mostfavorable for exports of the most populous developing nations (Heritage Foundation, 2001).Further, the United Nation's Human Development Index based life expectancy, educationalattainment, and standard of living indicates that Russia is the most suitable target of thedeveloping nations for a broad range of exports (Human Development Index, 2000). Lastly,Russia has the strongest educational system and literacy rate of the developing nations (e.g.,Russia has a literacy rate of 98%, while China and India have rates of 82% and 52%respectively) (CIA World Factbook, 2002).

Marketing/Advertising in Russia


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Advertising in Russia can be traced to the opening of the first advertising office in Moscow in1887 (Andrews, et al., 1994). However, after the 1917 Revolution, censorship severelylimited advertising. There was a revival, to some degree, from the 1960's until the mid-1980's, when advertising was focused primarily on industrial products for organizationalbuyers. The rebirth of competitive advertising occurred in 1985 when the leadership of the

Soviet Union transferred to the reform-minded Mikhail Gorbachev and controls on the mediawere loosened (Yergin & Gustafson, 1993). For the first time ads began to appear onbillboards, in newspapers, and in magazines (Dabars & Vokhmina, 1996). In 1987-1988 theSoviet Union Central Committee allowed joint venture agreements and direct negotiation forproducts and services, including advertising, among Soviet and Western firms. In the last tenyears, foreign advertising expenditures in Russia have gone from $8 million to $2 billion("Research Report," 2001).

Cultural Values

The first step to successful cross-cultural marketing is to understand the cultural differences

(Keegan, 1989). Consumers grow up in a particular culture and become accustomed to thatculture's value systems, beliefs, and perception processes. Consequently, they respond toadvertising messages that are congruent with their culture, rewarding advertisers whounderstand that culture and tailor ads to reflect its values (Cheng & Schweitzer, 1996;Chandy, et al., 2001; Culter & Javalgi, 1992; and Wells, 1994). Albers-Miller's (1996) studyof 55 country pairs indicates that similar cultures have similar advertising content anddissimilar societies have dissimilar advertising content. Hofstede's (1980) seminal studyregarding the relationship between national culture and work-related values is the mostfrequently cited benchmark for cross-cultural understanding (Tian, 2000). He considered thata country's value system could be depicted along four dimensions: individualism (IDV),power distance (PDI), uncertainty avoidance (UAI), and masculinity (MAS).

Hofstede (1980) explained that the dimension of individualism was the degree to whichindividual decision-making and actions are encouraged by society. This dimension reflectsthe way people live together. In a collectivist society, the lower end of the individualism-collectivism continuum, individualistic behavior may be seen as selfish. As such, it appearslogical to conclude that appeals highlighting individualism will be less effective.

The power distance dimension indicates the degree to which power differences are acceptedand sanctioned by society. In other words, it indicates how different societies have addressedbasic human inequalities in social status and prestige, wealth, and sources of power. The

societal norm in a country with a high score on the PDI dimension is for powerful people tolook as powerful as possible. People with power are considered to be right and good.Powerful people are expected to have privileges. In countries with large power distance, theexercise of power gives satisfaction, and powerful people try to maintain and increase powerdifferences (Hofstede, 1980). As such, appeals that reinforce the culture's sense of powerdistance (e.g., prestige) will be effective.


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Advertising Is Big Business in Russia :

Commercially Successful

CANNES Many Russians may worry about the dizzying invasion of their country bySnickers bars, Marlboros and Mercedes cars, but you wouldn't know it talking with VladimirEvstafiev.

For the president of Moscow's Maxima advertising agency, as well as others in the Russianadvertising industry, times are good.

"Russia is like a black hole; it's sucking up everything into the market," Mr. Evstafiev said."Companies can't produce quickly enough; capacity can't increase quickly enough."

The advertising business itself reflects this. Whereas the industry basically didn't exist six

years ago, there are about 2,000 agencies registered in Moscow alone today, Mr. Evstafievsaid at the recent Cannes advertising festival.

Despite the explosive growth, a small number have quickly risen to the top. Mr. Evstafievestimated the largest seven local agencies controlled half the market revenue, with the restbeing divided between such multinational networks as Young & Rubicam or BBDO andsmall home-grown shops.

Within the top seven, Premier SV, with about 1,000 employees, and Video International arethe dominant players.

The five-agency second tier includes a group called Avrora, as well as Maxima, whichemploys 50 people and has more than $7 million in revenues and includes such internationalclients as Cadbury Schweppes.

Though overall revenue is evenly split, Mr. Evstafiev said that this same seven-agency groupcontrolled about 75 percent of the television-time buying market - a position that, ifmaintained, could assure them of their place at the top of the agency heap as televisionadvertising demand continues to surge.

"Even the big international agencies buy their ad time through us," he said. "We act as

brokers for the stations."

Even so, Mr. Evstafiev and the others said there were signs of foreign agency networksstarting to negotiate directly with television networks rather than using these Russian shopsas middlemen.

The rapid development of the Russian agency landscape is being accompanied by equallyrapid changes in media costs. Currently, 60-second advertisements during prime time on oneof the two major, state- owned Russian television networks cost as much as $25,000.

Though cheap by Western standards, this is already five to six times as much as they cost last

year. And prices are expected to continue rising as increasing numbers of domestic


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advertisers, many with ample advertising budgets, compete with foreign advertisers for airtime.

"The largest 20 to 25 local clients probably have budgets of between $20 million to $30million, perhaps more," Mr. Evstafiev said, citing real-estate companies and banks as two

major local ad categories. "This is absolutely enormous in Russia."

The surging demand for advertising is also forcing improvements in the commercialsthemselves. "Technically, our advertising is almost on a par with the West," said VladimirFilippov, general director of Avrora. "As for creative, Russia has never had a shortage ofideas."

Still, many commercials would be considered overbearing by Western standards. One ad forvodka screened in this year's Cannes competition lived up to its description in the entrycatalog: "A woman catches her husband drinking at a bar. She shoots down the bar's displaywith a Kalashnikov. Everything is destroyed except a bottle of Zver - the strongest vodka."

The group acknowledged that creativity was "conceptually very different" from Westernadvertising, though mostly out of necessity.

"It's not so much about product quality and competitive comparisons as about finding thegoods advertised," Mr. Evstafiev said. "So of course, we need to impress them in the mostaggressive way possible - theatrics. At the same time, we need to have an address at the endof the commercial so they can find the product."

As with many emerging and lucrative industries in Russia, there's another group finding thead trade appealing: organized crime. Those interviewed were reluctant to discuss specifics,only to say that "crime is a problem."

The group also expressed ambivalence toward the presence of large international agencynetworks, despite their failure to make a major impact so far. Mr. Evstafiev said domesticagencies were quick to form associations with large agency groups when given the chance,including his own Maxima with Euro RSCG, and Avrora with Grey.

But while acknowledging the allure international relationships held for Russian shops, manyfound it frustrating that advertisers, at least initially, seemed drawn to the big networksdespite significantly lower commission rates - often 5 percent to 8 percent less - asked by

local agencies. "Clients start at the big names and realize later that we are cheaper and knowthe market better," Mr. Evstafiev said.

Despite this, they remain enthusiastic about the future of the business in Russia.

Still, many commercials would be considered overbearing by Western standards. One ad for vodka

screened in this year's Cannes competition lived up to its description in the entry catalog: "A woman

catches her husband drinking at a bar. She shoots down the bar's display with a Kalashnikov.

Everything is destroyed except a bottle of Zver - the strongest vodka."


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Successful advertisements on trolleys and buses in Russia raises the emotions of consumers

causing them to want to buy the product. This has led to interest from advertisers. Now masstransit advertising in Russian cities is very attractive. But it is worth remembering, especially that

mass transit advertising in Russia after time and bad weather, may lose their original appearance

and this adversely affects the consumer's perception of the product.


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BRAZIL

5. Natura Cosmeticos SA

Sales: $2.4 billionCountry: Brazil

Natura is the cosmetics giant born in Brazil. Corporate social responsibility is one of its coreemphases, and its more than 900 products help consultants earn a living. Natura also hasoperations in Argentina, Chile, Peru, Mexico, France, Venezuela and Colombia.

Wholesale Corporate Revenue: $2.4 billionMarketing Style: Person-to-person and retailCompensation Plan: Bi-levelProducts: Personal care products and fragrances

Markets: 8Distributors: 1 million+Employees: 5,000+Headquarters: So Paulo, BrazilYear Founded: 1969Stock Symbol: NATU3.SASo Paulo

Natura(BM&F Bovespa: NATU3)[3]is the Brazilian leading manufacturer and marketer ofskin care, solar filters, cosmetics, perfume and hair care products. The company was foundedin 1969, by Luiz Seabra and became a public company, listed onSo Paulo Stock Exchange,in 2004.

In 1974, Natura adopted direct sales as sales model. In 2008 it had more than 800,000"consultants" (resellers) spread throughout Argentina, Brazil, Chile, Colombia, France,Mexico and Peru, and since 2006 surpasses Avon's sales in Brazil. This has been mainly dueto the advent of an at home bikini waxing product, which has proved extremely popular withBrazilian women.

Natura focuses on its image as an eco-friendly, sustainable company (using natural products,

working toward sustainable environment and social support etc). The company also prides

itself on strong research and development activity. It uses ordinary women rather than

supermodels in its advertisements.in its advertising it focuses on ordinary woman using theirproduct because most of its customers are ordinary women who prefer it. this advertising has
http://en.wikipedia.org/wiki/BM%26F_Bovespahttp://en.wikipedia.org/wiki/BM%26F_Bovespahttp://en.wikipedia.org/wiki/BM%26F_Bovespahttp://en.wikipedia.org/wiki/Natura#cite_note-2http://en.wikipedia.org/wiki/Natura#cite_note-2http://en.wikipedia.org/wiki/Natura#cite_note-2http://en.wikipedia.org/wiki/S%C3%A3o_Paulo_Stock_Exchangehttp://en.wikipedia.org/wiki/S%C3%A3o_Paulo_Stock_Exchangehttp://en.wikipedia.org/wiki/S%C3%A3o_Paulo_Stock_Exchangehttp://en.wikipedia.org/wiki/S%C3%A3o_Paulo_Stock_Exchangehttp://en.wikipedia.org/wiki/Natura#cite_note-2http://en.wikipedia.org/wiki/BM%26F_Bovespa


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been of great success to the company and it helped the company to position itself in the mind

of the customers as the product which the ordinary citizens can afford.this form of advertising

was not only successful in the domestic but also in international market.

Natura Cosmeticos Marketing For MLM Success: Natura Cosmeticos

Distributors Learn How Internet Networkers Sponsor Sign Ups Online

Posted byWalter L Bellon May 27, 2011

In this brief Natura Cosmeticos marketing training formlm success for Natura Cosmeticos distributors I will give an overview an internet strategyfor attracting leads online. But first lets take a look at the standard Natura Cosmeticosmarketing training that most Natura Cosmeticos distributors are advised on when starting out.As it goes, they are advised to grab paper and pen and write down a list, at the veryminimum, of at least 100 or more people they know. We are advised to include family,friends, co-workers, and so forth. We finish our list and then begin at the top dialing throughthe numbers. With perhaps a hint of anticipation we begin dialing hoping to get our list ofwarm market contacts interested in taking a look at the Natura Cosmeticos opportunity.

Traditional Natura Cosmeticos Marketing: The Recruiting Family And

Friends Challenge

Shortly though after our initial Natura Cosmeticos marketing training on inviting prospects

and that first number from list is dialed reality hits us. Although many of them wouldnt mindbuying products from us, we start to find that people we first believed would join us are muchmore skeptical than we had believed about actually joining as an associate in the business.Our once exuberant enthusiasm transforms and instead starts to wane as we move through ourlist. We are resolved however and by no means giving up on achieving Natura Cosmeticossuccess or going to stop now because of negativity. From Natura Cosmeticos marketingtraining we realize its a numbers game. What causes us to forge ahead is the understandingthat we only need a few to sign up out of the 100 people to get things started. So we continuepolitely dismissing the negative responses to get to the few yes tell me more responses.After sorting through nearly one hundred phone numbers we have a few presentationsscheduled. We begin to show the plan and even go as far as enrolling a few people intoNatura Cosmeticos.

However, generally, the outcome from the 100 name list approach is that it rarely translatesinto success over time for most people. That is if it is the only Natura Cosmeticos recruitingmethod being used. The reason being is that you reach the end of such a list eventually andthere is no one else to talk to. Along with that fact, many of those that do sign up amongfamily and friends will often quit working the business before any real measure of success.For this reason the family and friends mlm recruiting process actually works for less than 1%of the people who venture into network marketing. The warm market is simply too limited tobe your primary Natura Cosmeticos leads source.
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Natura Cosmeticos Marketing On The Internet: The Endless MLM Lead

Generation Solution

What if you could have access to an endless, non stop self extending, potential recruit listof much better qualified prospects? I am not speaking of some overused, unresponsive leadsbought or purchased from a leads broker. Rather, a list unique to you and composed ofexperienced multi level distributors that are actually wanting to talk to you about youropportunity. Imagine, no more being held back by the short comings of a people you know

list. Well you really can have such a list by using a simple process and the power of the worldwide web. Though learning about such a Natura Cosmeticos recruiting system is not part ofany regular Natura Cosmeticos marketing training, the know how necessary to implementsuch a strategy can be learned from a good mlm mentor or from a mlm marketing trainingsites such aswww.networkersfriend.com. With this strategy you wont be using companydistributor cookie cutter websites or pitching prospects on your opportunity up front as youwould normally. The process instead uses value that draws experienced networkers first.

Network marketers are actually the very best people to prospect.

A Natura Cosmeticos Marketing System That Pays You To Prospect

The process of generating a prospect list in such a way is called attraction marketing. Thebest part about setting up an attraction marketing system is its ability to put money in yourpocket as you prospect. Even those who dont join your mlm business will participate infunding your recruiting efforts. You literally will get paid as you prospect using whats calleda funded proposal. It is a rejection-free way of achieving network marketing success andgetting paid even when prospects dont join your home business opportunity. Rest assured,your best chance at achieving mlm success in this internet age is to go beyond conventional

Natura Cosmeticos marketing and learn attraction marketing. By doing so you will neveragain chase family and friends or buy Natura Cosmeticos leads. Its a recruiting method thatworks for Natura Cosmeticos and all network marketing companies to get prospects pursuingyou with cash in hand. Share this recruiting strategy with your downline and watch your mlmbusiness explode

SOUTH AFRICA

[Last year's provocative brandhouse Drive Dry campaign, which came to be known as "Papa

wag vir jou", got South Africans talking and convinced many to not drink and drive. Buoyed

by the reception, the *2nd largest premium alcohol beverage company in South Africa,

brandhouse, has launched a new hard hitting campaign for the 2011/2012 festive season that

will catch the attention of consumers, making them aware of the potential consequences of

drinking and driving.
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The campaign asks one simple question: 'WHO'S DRIVINGYOU HOME TONIGHT?' It provides some thoughtprovoking answers.

As part of the launch phase, various installations are being

showcased at different venues around Cape Town such aspopular night-spots around the country to make members ofthe public stop and think about what could happen if theychoose to drink and drive.

"The objective of our new campaign is to bring the real consequences of drinking and drivinghome to consumers. The message is that you ultimately choose who will take you home afteryou have been out drinking. It is a simple choice, but whatever choice or decision you makewill have real, not necessarily pleasant consequences which can impact the rest of your life,"said Heather Noble, responsible drinking campaign manager at brandhouse.

Aims: Raise awareness, change consumer behaviour

"Our strategy is not simply to raise awareness but to change consumer behaviour: to neverdrink and drive again. We share in the widespread concerns about alcohol abuse, underagedrinking, binge drinking and drunk driving and therefore we are committed to doing whateverwe can to drive positive changes in attitudes and behaviours towards alcohol. We seek to beat the forefront of industry efforts to promote responsible drinking and combat misuse,"concluded Noble.

Research shows that long term integrated programmes suchas brandhouse Drive Dry can change people's attitudes and

bring people to the point of view that drunk driving is notsocially acceptable. This campaign is part of brandhouse'songoing efforts to inform and raise consumer awarenessabout the potentially devastating effects of driving whileunder the influence of alcohol.

The second phase of this year's integrated campaign includes a television advert whichlaunches in February 2012.

The Drive Dry 'WHO'S DRIVING YOU HOME TONIGHT?'

INNOVATIVE ADVERTISING STRATEGIES

Moving Billboards & Outdoor Billboard

Advertising

Stationery billboards suffer inherent shortcomings: being static they are exposed to a constantaudience that regularly passes the viewing point, and research has shown that they lose their


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effectiveness after 4-5 weeks as they become part of the scenery. This requires that themessage must constantly be changedat great expenseto remain effective.

Values Fleet Media Advertising division offers clients a solution to overcome these

problems with its Moving Billboards mobile media likely to be seen by many different

people every day in pre-determined areas and thereby ensuring the message will remain freshand effective throughout the campaign period.

Todays audiences are highly mobile and outdoor billboard advertising has become anattractive and cost-effective mass marketing medium. Value operates some 4 100 vehiclesthrough a network of depots across South Africa, and customers can now realise theopportunity to utilise the Value fleet transporting their merchandise for their own brandingopportunities by turning Value vehicles into larger-than-life promotional billboards alongtheir routes.

Full-colour graphic images on a large moving truck capture the attention of the man-in-the-

street, motorists, passengers and pedestrians in highly populated areas with major trafficflows, and on well-traveled national and regional roads. ValueMoving Billboardsoffer a costeffective, totally measurable advertising medium in any required area to the cl ients requiredtarget market.

The process begins with an analysis of the clients campaign and an assessment of the mosteffective use of vehicles on specific routes. Daylight-travel vehicles are identified for thispurpose. Selection is based on the demographics of each clients selected market.

Vehicles are tracked 24 hours per day, and a minimum distance traveled by each vehicle isguaranteed by Value. If this minimum distance is not achieved, the campaign will continue torun, free of charge, until the minimum distance is covered. If a vehicles covers a greaterdistance in the campaign period, that is to the clients advantage at no extra cost.

In addition, vehicles can be placed and utilised at major functions and events or at shoppingcentres and other venues, drawing attention to clients current campaigns in the area.

Different campaigns can be run simultaneously or can be changed at the cost of new print. Inan emergency situation, where a client requires to respond timeously and effectively, specialarrangement on an exception basis could be put in place to mobilise select vehicles and movethem to a specific area with applicable promotional material displayed.

Material is created and displayed on both sides of each selected vehicle. Medium and largevehicles boast an advertising space from 4-35 m each. Billboards are printed in full colouronto PVC and varnished to combat fading.

The basic costs involved include the hire of the vehicle, the framework required, theproduction of the graphics to be mounted on the frames, and insurance against damage.Terms and conditions apply.

MALAYSIA
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PETRONAS, short for Petroliam Nasional Berhad,[1] is a Malaysian oil andgascompanythat was founded on August 17, 1974. Wholly owned by the Government of Malaysia, thecorporation is vested with the entire oil and gas resources inMalaysiaand is entrusted withthe responsibility of developing and adding value to these resources. Petronas is rankedamongFortune Global 500's largest corporations in the world. Fortune ranks Petronas as the

95th largest company in the world in 2008 and 80th largest in 2009. It also ranks Petronas asthe 13th most profitable company in the world and the most profitable in Asia.[2][3][4]

Since its incorporation, Petronas has grown to be an integrated international oil and gascompany with business interests in 35 countries. As of the end of March 2005, the PetronasGroup comprised 103 wholly owned subsidiaries, 19 partly owned outfits and 57 associatedcompanies. Together, these companies make the Petronas Group, which is involved invarious oil and gas based activities. TheFinancial Timeshas identified Petronas as one of the"new seven sisters":[5] the most influential and mainly state-owned national oil and gascompanies from countries outside theOECD.

The Group is engaged in a wide spectrum of petroleum activities, including upstreamexploration and production of oil and gas to downstream oil refining; marketing anddistribution ofpetroleum products; trading; gas processing andliquefaction; gas transmissionpipelinenetwork operations; marketing ofliquefied natural gas;petrochemicalmanufacturingand marketing; shipping;automotive engineering; and property investment.

ThePetronas Twin Towerswere officially opened on Malaysia's 42nd National Day, August31, 1998 - in the Corporation's 24th Anniversary year.

Petronas got global recognition by sponsoring

international grand prix and after that it forced its

way into the fortune 500 list

Petronas was one of the main sponsors of the BMW Sauber Formula One team, and itsupplieslubricantsandfuelto the team. It also owned 40% ofSauber Petronas Engineering,the company that builds chassis which formerly utilizedFerraridesigned engines used by the

Sauber team, until being bought out by German motor company BMW. Petronas is also themain sponsor forMalaysian Grand Prix, and co-sponsors theChinese Grand Prix. Petronaswas the exclusive premium partner of theSauber Petronas(19952005) andBMW Sauber F1Team(20062009). BMW had acquired the controlling stake of the former Sauber PetronasEngineering, but left the sport after the 2009 season. On December 21, 2009, Petronas wasconfirmed as moving from BMW Sauber to the newly formedMercedes Grand Prixteam.

In terms of further Formula One involvement, every year Petronas took the BMW Sauberteam to various parts of Malaysia for F1 demos so the public who are unable to go to thetrack itself get to experience a little bit of what F1 offers. Other promotional events are heldin the run up to the race and the drivers play an integral part in this so much so that Nick

Heidfeldconceded that there were more fans for BMW Sauber in Malaysia than in most othercountries.
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ehttp://en.wikipedia.org/wiki/Sponsor_%28commercial%29http://en.wikipedia.org/wiki/Petronas_Twin_Towershttp://en.wikipedia.org/wiki/Automotive_engineeringhttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/Liquefied_natural_gashttp://en.wikipedia.org/wiki/Pipeline_transporthttp://en.wikipedia.org/wiki/Liquefaction_of_gaseshttp://en.wikipedia.org/wiki/Petroleum_producthttp://en.wikipedia.org/wiki/Oil_refininghttp://en.wikipedia.org/wiki/Downstream_%28oil_industry%29http://en.wikipedia.org/wiki/Oil_explorationhttp://en.wikipedia.org/wiki/Upstream_%28oil_industry%29http://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Petronas#cite_note-ft-4http://en.wikipedia.org/wiki/Seven_Sisters_%28oil_companies%29http://en.wikipedia.org/wiki/Financial_Timeshttp://en.wikipedia.org/wiki/Petronas#cite_note-3http://en.wikipedia.org/wiki/Petronas#cite_note-1http://en.wikipedia.org/wiki/Petronas#cite_note-1http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petronas#cite_note-Petronas-0


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As part of its corporate social responsibility programme, Petronas also brings underprivilegedchildren to watch the race.

Petronas has supportedTOM'S, aToyotaautomobile racing squad, since 2008.

Petronas also sponsors the Malaysian Cub Prix races. It also sponsors many other sportingevents and teams, mostly motorsports. Some of these sponsorships includes the PERT

(Petronas EON Rally Team), the now defunct Foggy Petronas Superbike team (in whichPetronas debutes their own superbike, the FP1), and also the Petronas Adventure Team, a4X4 adventure team. More recently Petronas is also a major sponsor for PETRONASTOYOTA TEAM TOM'S which is currently participating in Super GT series, which theywon the team title in 2008 and driver title in 2009. The series also race in Malaysia everyseason at Sepang International Circuit. Petronas signed a three-year sponsorship agreementwithFiat YamahamotoGPteam. The PETRONAS branding can be seen startingQatar raceon the 10 to 12 April 2009.

Education marketing by petronas through CSR

Petronas awards education sponsorships in the form of convertible loans to Malaysian and

international students to further their studies at local or foreign universities. The Petronas unit that

is responsible for handling education matters is called the Education Sponsorship Unit (ESU). These

sponsorships are awarded based on academic results, co-curricular activities, family background as

well as an assessment of student personality (which is conducted throughout a program called

EduCamp, which all prospective Petronas students are required to undergo). Students who are

absorbed by Petronas at the end of their tertiary studies have their convertible loans converted into

full scholarships. These students are under contract agreement to work for the company for two

years for every one year they are sponsored.

UNITED STATES

Nike

Wieden & Kennedy

In the late-1970s/early-1980s, Reebok's line of sports apparel sold far better and had a much more

robust share of the market, thanks to the explosion of aerobics and general exercise enthusiasm
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amongst women. Nike, who at the time had little more than a line of marathoners' shoes to their

name, wanted a piece of the action. So they went for the whole pie.

Late into the '80s, they started to tackle every demographic. They did this on their "Just Do It"

campaign, purportedly coined during a meeting of executives between WK and Nike ("You Nike guys,

you just do it."). The phrasing reflected the corporate culture and advertising approach, which was a

take-no-prisoners assault on the inactive and lethargic.

Furthermore, they tied their brand to smart, humorous and cool advertising, and made sports

apparel cool to wear when, well, you weren't being active. This all culminated into a perfect storm

during the '90s, at which time, their market share jumped from 18% to 43%, and their sales exploded

from $800 million a year in 1988 to upwards of $9.2 billion in 1998. Wanna look cool? Just do it.

INDIA

MICROMAX SUCCESS THROUGH EFFECTIVE ADVERTISING

Micromax Mobile needs no introduction today.Just two years back people were not aware ofthe brand at all but today its Indias third largest selling company by volume after Nokia and

Samsung (IDC Report).Brands success can be attributed to its ability to understand the need

of the market ,aggressive marketing with a budget of Rs.100 crore and smart distributionchannel management.

As per IDC report Micromax displaced LG to become third largest selling mobile handsetcompany in india with a market share of 6%.Nokia is market leader with 62% share andSamsung is on second place with 8% market share.The company today sells more than amillion handsets a month and is now a Rs.1600 cr worth brand. The company has presence inmore than 500 districts and 90,000 retail outlets. The company started its Mobile handsetbusiness in 2008 and the challenge was to establish an identity in a market dominated by bigMNCs Like Nokia,Samsung,LG and Motorola. The company realized the fact that there arecertain unmet needs still there in the market which is not being addressed by big brands.Micromaxs strategy ,since their inception has been to identify the unmet latent needs of

people and come up with a product which no one else has and thus fits well with theconsumer need. It didnt banked on price competition only rather it catered to the needs ofpeople unaddressed by MNC brands. Micromax initially targeted rural market and once it

established its presence went on to lure urban youth.


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Differentiation-Key stratgey:

Micromax has a lot of firsts to its credit in their product portfolio. It was the first tointroduce: Handsets with 30 days battery backup(Micromax X1i), Handsets with Dual SIM /

Dual Standby, Handsets Switching Networks (GSM CDMA) using gravity sensors,

Aspirational Qwerty Keypad Handsets, Operator Branded 3G Handsets, OMH CDMAHandsets, etc

Its gaming phone Gameolution has caught the fancy of youngsters.This phone workslike wireless wii which works on motion sensor technology and can convert PC/Laptop ingaming device.Then it came up with MTV music phone MTV X360 with Yamaha amplifierstargeted at music loving youth.

Thrust on Dual SIM Phones:

It understood the need the market and gave thrust on DUAL SIM phones.Most of its phones

are Dual SIM.Intense competition has led to stiff fall in call rates and operators keep oncoming with various offers to lure customers.Thus customers do not want to remain loyal toone and desire to avail best available offers at any time.With dual SIM phones they can keeptheir one number constant and another one changing to avail the best offers.This has led toincrease in popularity of Dual SIM phones and Micromax has grabbed substantial market inthis category.Surprisingly Nokia didnt heard this need and doesnt have any Dual SIM in itsbrand portfolio.

Aggressive Marketing & Smart Distribution Channel Management:

The company realized the fact that itll have to build the brand and bring awareness in amarket where people dont rely on unbranded phones.The company went for aggressive

marketing sponsored many cricketing events and allocated the budget of Rs.100 crore forATL & BTL activities.Recently company roped in Bollywood Actor Akshay Kumar as BrandAmbassador.

Feature Rich phones at affordable price:

India is a price sensitive market and people aspire to have feature rich products at lowprice.Micromax made it possible and thus people B&C category towns grabbed micromax

phones as it was laiden with features but not heavy on pocket. Its QWERTY phones come

below Rs.5000.

All said and done the company has few challenges to tackle too.It has to build trust amongpeople in product performance and after sales service.Nokia & Samsung have a very strongafter sales service centres.

The Strategy

Micromax followed a unique strategy of targeting and positioning to enter the Indian Market.Micromax concentrated on the rural market first. It was a unique strategy as the conventionfollowed by marketers is to concentrate on the urban markets then to move to the rural

markets.


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Micromax launched its first phone in the rural market with a very unique USP- 30 daysbattery standby time. The brand was launched from a consumer insight that most of the ruralhouseholds do not get enough electricity to recharge phones on a daily basis. Hence a phonewith a 30 day battery standby would be a worthwhile differentiation. The first product was abig success. The first product Micromax X1i priced at Rs 2150 was lapped up by rural

market.

The success of X1i egged the company to aggressively make further inroads into the market.However, tapping the rural market had its set of difficulties, namely in the logistics section asfar as servicing was concerned. Micromax approached this difficulty by working on aneffective distribution network. According to a report in Forbes India (March 5,2010),Micromax created a distribution network comprising of 34 super distributors, 450 distributorsand around 55,000 retailers.

One of the highlight of their distribution strategy was that Micromax managed to make thesedealers pay in advance by offering them more margins. According to the news report,

Micromax managed this hurdle through this strategy of more margins for advance payment. Itis not a new strategy to offer such kind of discounts for advance payments (cash discounts),but to make a retailer accept such an offer is indeed a remarkable feat.

Unlike many challenger brands, Micromax was careful in its product strategy. Although allMicromax products were towards the lower end of the pricing spectrum, the brand wasfocusing on adding more features at a reasonable price. The focus was more on value thanprice. Innovation, Cost-Effective, Credible and an Insightful R&D are given high emphasis atMicromax in the telecom vertical. Their product range generally has some USP which offeredmore value to the consumers.

Promotion

Having gained traction, Micromax is also working on a strategy to create awareness in themetros, which includes tying up with MTV for co-branded phones.

Micromax has also tied up with a Bollywood celebrityAkshay Kumar as brandambassador.


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Micromax has also tied up some pretty big brands like Yamaha for enhancing their audioexperiences and the X360 comes with an MTV branding and exclusive content and recentlythe sponsorship of IPL 2010 has given the product a big fillip.

Micromax is an upcoming product in the mobile marketing sector. It is becoming a brand to

reckon with in a very crowded market and with the recent technological innovations in thetelecom sector the future seems to hold opportunities galore for the company

im project by mudassir

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