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  • 1. Pan IIM Marketing Digest The Looking Glass
  • 2. THE LOOKING Editorial GLASS Online Partner: Dare2Compete In this edition Dear Readers Measuring the Effectiveness of the Humour Quotient in Indian Advetising ……3 It gives us immense pleasure to bring out the first ever PAN-IIM marketing digest, with a joint effort by the marketing clubs of IIMs A, B, C and L. Influencer Marketing ..…..6 If you take time to look around, you would observe the importance of marketing in every sphere of your life. Implicit Positioning and Surrogate Advertising .........9 Starting from the time you get up in the morning, the brush, toothpaste you use, right up to the time you crash on your bed at night, just think of those countless brands that shape your daily lifestyle. It‟s a continuous tussle Fake IPL Player: Redefining Marketing ..…..11 between those myriad brands laid across the horizon of consumer observation span. In a season where marketers Effective Multi-tiered Promotions: are leaving no stone unturned trying to grab consumer attention, marketing automatically assumes utmost impor- Lessons From Santoor ..…..13 tance. The world is brutal. It‟s no longer about marketing your product right. It‟s basically a requisite for sur- vival. If you don‟t do it, your competitors will. And the consumers have plenty of options. So, basically if you 4P's of Indian Theatre Marketing ..…...17 don‟t sell, your competitors will. Neo-Political Marketing ...….21 We decided to come up with a collection of choicest articles contributed by students and industry personnel, which would highlight the trends of contemporary marketing. And for the same reason we decided to call the digest, „The Looking Glass‟, because we feel it will give a true reflection of marketing, and the direction it is taking in today‟s Strategic Marketing for Educational Institutions…..25 scenario. The articles touch a wide array of topics which have assumed importance in the recent past. How has humour been used effectively by marketers? How do you sell educational institutes? What exactly did the Fake Welcome to Marketing, the third epoch! ........28 IPL Player do for KKR? How do advertisers resort to surrogate advertising? What are the trends in online mar- Sidestepping the Commoditization of keting? These, and many more articles inside would keep you engrossed as you go through the pages, we hope. Disruptive Innovations …...30 There are those who envision, and then there are those who work to make the vision a reality. We are proud to Sales Role in Fixed Income Securities Market ……32 say that we had a team which did both. We would like to thank all those who were involved taking the digest to the completion stage. There was a tremendous amount of co-ordination and synchronization put in by the market- Valuation of TV Advertising …….34 ing clubs of the 4 IIMs. At every stage of development we also received immense support from the faculty in the form of guidance and encouragement. Also, a very special thanks to Mr. Prakash Bagri, Director of Marketing, Ogilvy and Mather Trivia …….36 Intel South Asia, for sharing his insights on the evolution and future of marketing, in the digest. Is Recession the time to tighten Ad Budget? …….37 In future we plan to evolve by bringing in greater participation from the industry and experts and initiating wider Low Cost Customer Acquisition distribution. Please do send us your feedback at Strategies for E-businesses …….39 Yours Truly State of the Market -A Comparative Study …….42 Mayank Jain, Prasad Gopal , Robin Joseph , Garima Mamgain Does Green Marketing Sell? ……..44 Men's Cosmetics ……..48 Team Editors Design Pan IIM Team Mayank Jain (IIMC) Yatish Misra (IIMC) Piyush Mehta (IIMC) Chayan Mukhopadhyay (IIMB) Prasad Gopal (IIMB) Prativa Lama (IIMB) Brijesh Unithan (IIMC) Gautam Attravan (IIMB) Robin Joseph (IIMA) Rajkul Fulzele (IIMA) Mafla Mudgal (IIMC) Shreshth Sharma (IIMB) Garima Mamgain (IIML) Rishi Varshney (IIML) Nikhil Joshi (IIMC) Meenakshi Prasad (IIML) Amit Sharma (IIML) Pratik Prakash (IIMC) Saikat Mondal (IIML) Sanglap Bannerjee (IIMC) Ganesh PR (IIML) Abhishek Mohan (IIMB) Manoj Kumar Kamble (IIML)
  • 3. P AGE 3 Measuring the Effectiveness of the Humour Quotient in Indian Advertising In this article, we explore the hu- Humour can come in many forms mour quotient in Indian advertis- and the choice of the appropriate ing through the lens of certain type is highly dependent on the television ad campaigns that have target audience, the cultural bias, tickled the consumer funny bone the choice of advertising medium in order to evaluate the effective- and the product itself. Some of ness of such campaigns. We di- the more popularly used forms verge from the traditionalist body are: of literature that brackets hu-  Personification: This is mour in advertising as risky and where inanimate objects assume at best, as effective as other ads. human characteristics and the Our contention is that an ad inherent humour in observing campaign based on humour such behaviour is used to high- stands out from the crowd and light some quality or the desir- captures the consumer mind- ability of the brand. One such share. example is Pepsi‟s „Oye Bubbly‟ campaign in which various ob- Our contention is that INTRODUCTION jects such as the car stereo and an ad campaign based the garage are shown coveting the When using humour to advertise Pepsi bottle. on humour stands out a product, the main challenge for from the crowd and  Exaggeration: Here certain marketers is to link the advertise- captures the consumer attributes of the product are ment to the underlying brand so magnified out of proportion like mindshare. as to translate consumer enjoy- the Fevikwik ads where the fish- ment to consumer purchase. This erman uses Fevikwik on a stick linkage is questioned by numer- to catch fish, trumping the so- ous researchers with the distrac- phisticated fishing gear of the tion of the consumer from the person next to him. brand quoted as the chief flaw of such a strategy. We diverge from  Slapstick: This particular this view – our contention is that brand of humour deals with the the industry context and basis of ludicrous/exaggerated and pre- competition is also critical to the nature of advertisements used. sents situations where the hu- Our frame of analysis would be morous aspect of the ad, far from campaigns that are recognized for being subtle, strikes the viewer in their innovative use of humour the face, the Chlormint ads being including Fevicol and Fewikwik, a prime example of this. Happydent White, Vodafone Zoo- zoos, Idea Cellular, Frooti, Tata Other forms include sarcasm, Indian advertisements, Sky, Sprite. comparison, pun, understate- in the past, have ment and irony. However, there is mostly derived their TYPES OF HUMOUR a strong cultural context for such humour from the in- Back in the 1960‟s, a golden rule advertisements. Individualistic terplay between multi- in advertising, propagated by the cultures like the US and UK typi- ple characters. founder of Prentice-Hall, was to cally feature advertisements hav- never mix humour and advertis- ing one or two dominant charac- ing. Today, with the proliferation of product offerings, humour is ters while in more collectivistic increasingly being looked upon cultures like Thailand, ads re- not as a distraction that trivial- volve around groups. Similarly, izes the product, but as an effec- the degree of uncertainty avoid- tive means of distinguishing the ance and the amount of mascu- product from the crowd and line dominance in the culture of a drawing the attention of con- country are key factors in influ- sumer. T HE LOOK ING GLASS
  • 4. P AGE 4 influencing the type of humour that can be spectrum – be it the group oriented Fevicol successfully used in advertisements, with truck ad showing people stuffed into a truck, countries high on these two parameters tend- or the more individual oriented Fevikwik fish- ing to prefer slapstick or direct humour to erman ad, from the slapstick Akai TV ads of subtle nuances and double entendres. old to the more subtle Camlin Marker ads, to the extent that even potentially controversial Analyzing the Indian advertising scenario ads like the Axe series have found acceptance keeping this cultural context in mind, certain in India, which is viewed to be conservative. key trends can be identified. Given the tradi- tional family oriented culture of India, Indian Case Studies: We examine the following ad- advertisements, in the past, have mostly de- vertising campaigns with a view towards illus- rived their humour from the interplay between trating the different types of humour that multiple characters. Also, in the past, humour works in the Indian context and also to meas- has tended to be largely slapstick, based on ure the effectiveness of these campaigns filmy spoofs and ridiculous situations. This is along multiple dimensions: Amaron, Frooti, part, can be attributed to the diversity of cul- Axe and Max New York Life Insurance. Our tures and languages found in India. Humor- choice is driven by the different types of hu- ous ads, therefore, must tread the thin line mour used in each of these campaigns. between keeping the cultural idioms of their target audience in mind and taking care not to Amaron (Amara Raja) batteries: The iconic offend the cultural sensibilities of any group. claymation advertisements with the catchy Slapstick offers an easy way out with situ- slogan of „Lasts Long Really Long...Ting Tong‟ ational humour having a broader reach while captured the imagination of the public and also ensuring that the punch line is not lost acted as clutter busters in 2002. The „Hare on the audience. and Tortoise‟ ad and the „Kumbhakarna ad‟ were aired on Doordarshan and other satellite channels and brought in tremendous brand EVOLUTION OF HUMOUR IN INDIAN ADS awareness for Amaron batteries – a new en- trant into the automotives battery space in Over the years, there has been a gradual evo- 2000. lution in the use of humour in Indian adver- tisements. The most obvious change has been Interestingly however, the expected spurt in the increasing use of humour with advertising sales did not materialize. The product was a agencies increasingly trying to grab the atten- low involvement one with incumbent advertis- tion of consumers through their funny bone. ing focussing on the toughness and macho image of the car battery. The dominant player In 1993, only 28% of commercials were hu- at that time, Exide, was well entrenched and mour-based. By 2001, at least 46% tried to Amaron did not manage to make a dent in incorporate some form of humour. And while their sales. The ad agency – O&M went back in most countries, funny ads have largely to the same claymation studio in 2004 to been associated with low-involvement prod- come up with a follow up, the „Pandu Mangal‟ ucts, in India, even high-involvement products ad. The uniqueness of this ad was the univer- like televisions and insurance have tried their sal nature of the humour – the bumbling cop in pursuit of a wily thief was instantly recog- hands at humour. nized and appreciated across all segments of A more subtle change that has been taking people. We also theorize that the humour was place is in the type of humour employed. well received as it relied on simple age-old From pure slapstick, ads are moving towards themes and had powerful visual imagery. This more intelligent comedy, with a more individu- ad consolidated Amaron as a powerful brand alistic bent, be it the Vodafone Zoozoos, which and was a platform for their explosive growth cleverly depicted a variety situations, each post-2006. In 2006 Amaron reverted to a with some link to a feature offered by Voda- stereotypical performance based campaign fone, or the Fasttrack „Move on‟ commercials, using racing stars like Karun Chandok and which perfectly capture the changing nature Narain Karthikeyan. Our take is that the hu- of Indian society today. India today is at a mour based advertising helped establish the crossroads, between its traditional past and a brand awareness but did not add to the top- more modern future, which perhaps explains line due to the low involvement of the car the success of ads across the entire cultural owners in the buying decision and the lack of product differentiation as the „Lasts Long‟ promise held true de-facto in the business. T HE LOOK ING GLASS
  • 5. P AGE 5 Frooti: The Digen Verma ad blitz that lasted Axe is by far the naughtiest brand in India for 15 days in February 2001 catapulted the and is targeted at the male aged 16-25. The brand into public imagination and generated a ads highlight various situations where the tremendous buzz across the country. The cam- guy, usually an ordinary next door paign was centred on a faceless college going neighbour kind of chap rather than a guy called Digen Verma worshipped by his hunk, gets pursued by different women. friends, girls and even peons – in general eve- Seduction is the dominant motif here, with ryone who knew him except for the stodgy old the women making the first move – a bold college professor. The teaser campaign com- idea for Indian audiences. Yet, it has cap- bined with the new caption for Frooti – „Just tured the pulse of its target audience per- Like That‟ was aimed at repositioning Frooti fectly. from a kids drink to one for the youth. Hence, a rebellious theme was adopted in the cam- Max New York Life: When Max New York paign. came out with their advertisement featur- ing an overzealous dad with his young child The last series of ads in this campaign show as he exhorts the child to repeat words of Digen ordering Frooti (of course Digen himself increasing complexity, consumers sat up is not shown on screen) – this causes pande- and took notice. The advertisement poked monium across the country and everyone fun at Indians who have a propensity to switches to Frooti immediately! This campaign push their children into various activities was unique in the effective use of suspense at a young age. Interestingly, the humour (watch this space approach) and humour in in the ad was well received – wry humour engaging consumer attention through various had worked on Indian screens after a long innovative forms of media (messages telling while! The ad demonstrated two things – Digen to remove his car from the parking lot one that Indians were willing to laugh at were flashed in theatres, bus stops had posters themselves and two, high involvement asking if Digen would be on the next bus and products could be advertised using hu- so forth). mour. A look at the sales figures show a marginal in- The sales of new policies shot up from the crease in the year the campaign was aired fol- slowdown in October – further the weighted lowed by steady increase in sales – the market new received premiums too shot up. The ad share decline was halted by this campaign had worked its magic. Max New York fol- though. Sceptics however claimed that the Di- lowed it up with another humorous ad in gen Verma persona had become more famous Apr-2009, this time poking fun at the re- and had marginalized the brand. Later, Frooti tired Indian male. switched to their old theme of „Fresh and Juicy‟ which did worse than the Digen Verma CONCLUSION campaign – hence in comparison the use of a unique style of humour proved to be more ef- Thus, the use of humour, in products fective for Frooti. where consumer preferences play a vital Axe: Our inclusion of Axe is a little controver- role in selection, not only helps bring the sial as its ads have straddled a thin line be- brand into the consumer‟s consideration tween sexism and naughtiness in terms of the set through increased brand awareness humour. We study it due to the unique nature and recall, but also appears to translate of the advertising – the same campaigns are directly to an increase in sales. aired worldwide and there has been no attempt to tone down the humour or modify it in any Kaushik Sriram is a 2nd year PGP student at IIM Banga- way for India. lore. He holds a Bachelors degree in Electronics and Communi- This dispels the notion that Indians are con- cation Engineering from National Institute of Technology (NIT) servative in their humour – of course the mar- Trichy and can be reached at keting for Axe was backed up by a great prod- uct too. The Axe effect in terms of sales and Rohini Ramachandran is a 2nd year PGP student at IIM market share has been spectacular to say the Bangalore. She holds a Bachelors degree in Electronics and Com- least. HUL (the parent company)replaced their munication Engineering from National Institute of Technology old deodorant brand Denim with Axe due to its (NIT) Trichy and can be reached at spectacular success. T HE LOOK ING GLASS
  • 6. P AGE 6 Influencer Marketing Welcome to the age of influencer marketing objective. WOMMA marketing. You might have wit- (Word of mouth marketing associa- nessed and experienced it in the tion) provides a handy classifica- past – it‟s just that the term has tion of influencers based on how become more visible. Youtube, they derive their power of influ- blogs, twitter – the tools can be ence. many, the message is the same - Once the target influencer has “you are being influenced.” been identified, the next step is to market the product to the influen- cer, to help increase the awareness Compared to traditional marketing among the influencer community. practices, influencer marketing fo- They then become well equipped to cuses on key types of individuals. It use their influence in favour of the aims to take advantage of the influ- ence these individuals have over firm. the target segment, with these in- fluencers becoming the centre of all The third and final set of activities marketing activities. involves the use of these influen- Imagine your next visit to cers to advocate to the target seg- your optician. After the ment. Influencers can play a direct regular eye check-up, he According to Duncan and Nick, or indirect role in this process. advises you to switch to these influencers may be potential contact lenses, informing What we see in case of contact buyers themselves, or they may be you of the pros and cons. lenses is an indirect approach third parties. These third parties You wonder what this is where the influencer (optician) is exist either in the supply chain leading to - is your optician raising awareness about the cate- (retailers, manufacturers, etc.) or working as an agent to some gory and not the brand. To comple- may be so-called value-added influ- contact lens manufacturer? ment the strategy, the manufac- encers (such as journalists, aca- Well, the answer to this turer might put some point of sale demics, industry analysts, profes- question can be both yes or merchandising to promote its prod- sional advisers, and so on) - Fig 1. no. He is just exercising his uct. The third and final set of ac- influence on your decision tivities involves the use of these making. The motivation for influencers to advocate to the tar- such an action could have Using Influencer Marketing get segment. Influencers can play a come from a manufacturer, The first and most important activ- direct or indirect role in this proc- in the form of incentives, ity in influencer marketing is iden- ess. What we see in case of contact such as higher margins. On tification of influencers and evalu- lenses is an indirect approach the other hand, he might ating their potential to serve the just be using his judgment and trying to help you out. Figure 1: Type of Influencers (source: WOMMA) T HE LOOK ING GLASS
  • 7. P AGE 7 where the influencer (optician) is raising Category/Subject Matter Expert group). awareness about the category and not the These doctors commanded a great amount brand. To complement the strategy, the of influence on their patients and most of manufacturer might put some point of sale the times their prescriptions acted as a merchandising to promote its product. command for the patients. Marico identi- fied these doctors and dieticians as its influencers. Industry Practices One of the most common applications of Marketing to these influencers is done influencer marketing is in medicines and through various activities. Here we list pharmaceutical products. In many cases, some of them: the active ingredient is common across companies, and the medicines are substi- tutable. Since the law prohibits any adver- tisements of prescription drugs, compa- nies rely on prescriptions from doctors to drive sales. Hence, they send their repre- sentatives to disseminate information to doctors and give them free samples (you might have seen „Physician‟s sample, not for sale‟ printed on mini packs in your doctor‟s clinic). Sometimes, the represen- tatives even check up with local chemists whether the medicines being promoted are selling, before they make a visit. Figure 2: Saffola's use of influencer Even in categories where advertising of the marketing product is permitted, like oral care, com- panies don‟t miss out on opportunities to 1. Product detailing and sampling to the promote their products to dentists. This is doctors. Marico promoters visit these because an advertisement can rarely have doctors and brief them about the the credibility, and hence the influence on product. They use product detailers the purchase decision, as compared to a and other research documents to suggestion from the consumer‟s dentist. backup their claim. Sampling helps in Another avenue that companies use to generating some trials if the doctors market themselves to influencers like den- find the product claims appropriate. tists is sponsoring lectures on recent Essentially, it‟s the same route that trends in oral care. Use of various dental pharmaceutical companies take for associations to certify one brand of tooth- their product. paste or toothbrush is another example of influencer marketing. Colgate has done 2. Involvement with various medical as- well in this regard in India. sociations and other such platforms. The visibility on such forums provides reach to a large section of influencer On a related note, Marico Ltd. has suc- community. cessfully used influencer marketing 3. Involving various key influencers to through cardiologists to promote its prod- help improve the product offering and ucts, especially Saffola Oil. Saffola is a saf- future product development. flower based refined edible oil that prom- ises to help control cholesterol for cardiac patients. When Marico launched this product in market, the biggest challenge it faced was that most of the customers were unaware about cholesterol. Cardiac pa- tients relied completely on their cardiolo- gists and family doctors for information (in WOMMA classification, these belong to T HE LOOK ING GLASS
  • 8. P AGE 8 Once these influencers become aware of the Top 10 Most Brilliant Marketing Screw Ups product and accept the effectiveness of the product, they do not hesitate in giving infor- mation about the same to their patients.  Coors put its slogan, "Turn it loose," into Spanish, where it Saffola today is part of many a diet charts was read as "Suffer from diarrhoea." and diet-guides because of such activities. It is most probably the only edible oil that is recommended by doctors during consulta-  Scandinavian vacuum manufacturer Electrolux used the tion. following in an American campaign: "Nothing sucks like an Electrolux." Another, most common use of influencer  Clairol introduced the "Mist Stick", a curling iron, into Ger- marketing in modern times is engaging tech- man only to find out that "mist" is slang for manure. Not nology experts during launch of new prod- too many people had use for the "manure stick." ucts. Most of the cell-phone manufacturers as well manufacturers of new age software  When Gerber started selling baby food in Africa, they used provide their product to these experts before the same packaging as in the U.S., with the beautiful Cau- the product is formally launched. The ex- casian baby on the label. Later they learned that in Africa, perts are encouraged to write about the companies routinely put pictures on the label of what's in- product. The influence these experts com- side, since most people can't read. mand over the tech savvy target segment helps in convincing early-buyers of the prod-  Colgate introduced a toothpaste in France called Cue, the uct and thus generating the initial thrust name of a notorious porno magazine. required for the success of the product.  An American T-shirt maker in Miami printed shirts for the Spanish market which promoted the Pope's visit. Instead of Influencer marketing gives a marketer an "I saw the Pope" (el Papa), the shirts read "I saw the po- opportunity to utilize resources beyond what tato" (la papa). is owned by the organization. This necessi- tates establishing professional and ethical norms on the marketer‟s part. The power of  Pepsi's "Come alive with the Pepsi Generation" translated influence also comes with great responsibil- into "Pepsi brings your ancestors back from the grave", in ity of using this influence in the right man- Chinese. ner. It is not uncommon to hear of compa- nies providing excessive incentives to influ-  Frank Perdue's chicken slogan, "it takes a strong man to encers, to ensure that they promote only make a tender chicken" was translated into Spanish as "it their products. The onus is on the marketer takes an aroused man to make a chicken affectionate." to define the ethical and professional boundaries and stay within them.  The Coca-Cola name in China was first read as "Ke-kou-ke- la", meaning "Bite the wax tadpole" or "female horse stuffed with wax", depending on the dialect. Coke then re- So, in case you are looking to visit your opti- searched 40,000 characters to find a phonetic equivalent cian anytime soon, at least now you know "ko-kou-ko-le", translating into "happiness in the mouth." that he might be influenced by Bausch and Lomb to „influence‟ you into buying contact  When Parker Pen marketed a ball-point pen in Mexico, its lenses. ads were supposed to have read, "It won't leak in your pocket and embarrass you". Instead, the company thought Ammar Tambawal is a 2nd year PGP student at IIM Ah- that the word "embarazar" (to impregnate) meant to em- medabad. He holds a Bachelors degree in Electronics Engineering barrass, so the ad read: "It won't leak in your pocket and fr om VESI T , B ombay and can be r each ed make you pregnant." at Pritesh Jain is a 2nd year PGP student at IIM Ahmedabad. He holds a Bachelors degree in Electronics and Communication Engineering from RV College of Engineering, Bangalore and can be reached at T HE LOOK ING GLASS
  • 9. P AGE 9 Implicit positioning and surrogate advertising Advertising is widely accepted to be vertising avenues which often the most potent tool in the hand of a stretched the concept of brand ex- marketer. Whether it is to launch a tension to previously unheard-of lev- new product, entrench an existing els. These include the mundane such one, educate on the new salient fea- as sponsoring events (without ex- tures or create a new market, most plicit advertising) and Internet adver- consumer products manufacturers tising; the unconventional such as orient a considerable amount of ITC‟s diversification into clothing and time, energy and money to reaching apparel as well as the far-fetched out to existing and potential con- such as the Red and White Bravery sumers though various media such Awards and other lifetime achieve- as television, radio etc. as also new ment awards instituted mainly to age media like the Internet and Out perpetuate brand recall among the of Home (OOH) media. target audience. One interesting trend which was observed in the mid Origins 2000s was the “socially responsible In this context, one can imagine the advertising” taken up by many liquor predicament of a producer who is companies. Several advertisements mandated to legally produce and exhorting viewers to be responsible stock and then has his hands tied by citizens and refrain from driving after The ban on advertising of being denied the right to market the drinking were seen by media ana- tobacco and liquor produce. This is a ditch that many lysts as a form of surrogacy. introduced by the liquor and cigarette companies have Government of India Media analysts have also often won- found themselves in after the Gov- during the early 2000s has dered aloud that the ambitious for- ernment of India passed a blanket spawned a generation of ays made by Dr Vijay Mallya in avia- surrogate marketing ban on all advertising of „intoxicants tion, Formula 1 and related initiatives as corporations and harmful substances‟ in mid „glamorous‟ industries have as much leant to sell without 2002. Most of the large players to do with his desire to perpetuate communicating to the adapted quickly to introducing what his strong brand portfolio as the consumer. Many in the are termed as complimentary prod- prospect of de-risking his business industry have since started ucts which fell outside the ambit of by diversifying. to diversify into areas the Government‟s regulation. The where they can leverage significant ones include 8PM Whisky For the best part of this decade, the their brands’ aspirational (apple juice), Aristocrat Whisky tobacco and liquor manufacturing value; such as aviation, (apple juice), Bagpiper (club soda), lobby has been trying to persuade clothing and apparel and Hayward‟s 5000 Beer (kit of darts the government to relax the restric- sports. However the which was the centrepiece of the ad- surrogacy in advertising tions on advertising what are per- vertising campaign) and Gilbey's continues in the absence ceived as surrogate products. Fi- Green Label Whisky (mineral water); of a strong code by the nally, as late as March 2009, the and in this process was born a new ASCI and the government Government of India decided to the trend of surrogacy in advertising flip flops on the issue. hand a long rope under the stipula- which is commonly defined as The need of the hour is to tion that the surrogates have no „advertising one product with the come clean on the subject product linkages to intoxicants. view of selling another‟ and develop an However on June 10th this year, the unambiguous plan of Trends in surrogate advertising government tabled a bill to amend action the Cable Television Network Act of After the ban imposed on the 12 ad- 1994, which is likely to tighten the vertisements identified as surrogates screws on surrogate advertising even by the Government of India, and the further. show-cause notices issued to Star TV, Zee TV and Aaj Tak in 2002 un- Advertising Ethics der the provisions of the Cable Tele- vision Regulation Act of 2002, the whirlwind of surrogate ads hitting The Advertising Standards Council of the telly calmed down to a large ex- India (ASCI) issued clarifications at tent. Advertisers started diversifying various points of time that in accor- and shifted their focus to other ad- dance with the code laid for guiding T HE LOOK ING GLASS
  • 10. P AGE 10 If it has been established conclusively that ciga- rette smoking kills, why is it that it is available to anyone, irrespective of his or her age, at every street corner?” "It's difficult to digest that an industry which is ethical behaviour in advertising, the mere use allowed to sell its products, is banned from ad- of a brand name or company name which may vertising the same products, despite the fact be the same or related to a product put under that the commercials carry health warning, ad- advertising restriction may not be construed as vising the customers to use the product in tem- reason enough to find the advertisement objec- perance.", says Prof. Atul Tandan, Director, tionable. An exception may however be made Mudra Institute of Communications in an arti- in case the product which is advertised is not cle released in July 2002. freely available or is produced and distributed in minuscule quantities, which may not be suf- While such questions make intuitive sense, the ficient to warrant advertising costs. Also adver- practicality of banning production of tobacco tisements must not contain direct or indirect and liquor is unpalatable for the simple reason cues for the product under advertising restric- that these are very heavy contributors to In- tion. dia‟s tax kitty and the revenue loss due to a ban on production will most likely be catastro- However many advertisers must still grapple phic. Also the increasing pressure exerted by with ethical dilemmas as the existing code the WHO as well as NGOs and health activists leaves a lot of scope for interpretation. have forced the government to be seen doing something. As a result of this duality of pur- Voluntary abstinence pose, the tug-of-war continues without resolu- tion. A notable exception to the clamoring by the The need of the hour tobacco and liquor lobby and circumventing of stipulations to maintain sales is the conduct of ITC Ltd after the ban announced by the gov- The following measure will go a long way in ernment. In 2001, ITC voluntarily opted out of easing the deadlock seen here: the sponsorship deal that it had signed with the BCCI to sponsor the Indian cricket team The ASCI should have an unambiguous guide- and has since been de-emphasizing its ciga- line for differentiating acceptable and unac- rette brands in favor of other lines of business ceptable forms of advertising with respect to which are considerably more sustainable. It surrogate products. Also the ASCI should be has also taken up large scale Corporate Social empowered to implement the guidelines and Initiatives in rural India, the crown jewel being issue penalties for non-conformance. the e-Choupal initiative, to enable the agricul- The government needs to take a stand on the tural community to adopt a direct selling ap- issue. It must look beyond having the cake proach. (the advertising ban) and eating (tax revenues) it. Advertising companies must take pains to Two sides of the same coin: Ambiguity of understand the nature of the products and law market that they are dealing with and must refrain from designing and propagating surro- gate brands. Many in the industry question the practice of banning advertisements which effectively Nikhil Joshi is a 1st year PGDM student at IIM Calcutta. He erodes the ability to sell while at the same time holds a Bachelor‟s degree in Electronics and Telecommunication Engi- allowing production to continue. neering from University of Mumbai and has worked as a Software Testing Consultant with L&T Infotech. He can be reached at In an article published by The Hindu in March 2008 Ramesh Narayan, a communication con- sultant writes, “The advertiser‟s perspective is fairly straight- forward. If it is legal to manufacture, distribute and sell a product, why should it be illegal to promote the sale of that product? I don‟t think anyone can answer that question convincingly. T HE LOOK ING GLASS
  • 11. P AGE 11 Fake IPL Player: Redefining Marketing “Lord Almighty along with the Ca- lypso King decided to take the attack Further, according to a report pub- on to the Bubblies. The Phoren babas lished by Business Standard, the were happy when they saw Appam peak ratings of KKR matches on SET being slaughtered. Prince Charles of MAX channel were among the high- Patiala was all tensed up but est; at around 6 per cent of the total Bhookha Nan and Kaan Moolu were cable viewers above the age of 15 having a very good time with Sandy years. Baddy Babe.” A source representing one of the This may sound gibberish to many. sponsors summed it as “From an But those who have ever come advertiser‟s point of view, we have across the Fake IPL Player‟s blog at got a lot of mileage and media space any point of time would be laughing for the right and wrong reasons. The their hearts out. This blog has be- fact that it has managed to attract came a sensation in the cricketing television viewership and on-ground Fake IPL Player, a blog world. But at the same time it also released by an anonymous support from spectators speaks a lot made several great traditional mar- blogger during the Indian about the brand KKR”. keters sit up and take notice. Premier League (Season- 2), created a lot of furor in the cricketing world. This may be a coincidence. But What is this hype all about? But at the same time it surely Fake IPL Player has popular- stood out as an excellent Just a couple of days before the start ized the two relatively new strategies marketing campaign for of the IPL 2nd season in South Af- of marketing – Anti-Marketing and the Kolkata Knight rica, a blog was launched by an Buzz Marketing. Riders Team. Using the anonymous person, who claimed to unorthodox marketing be a member of the Kolkata Knight techniques of Anti- Anti Marketing Riders Squad. Throughout the IPL marketing and Buzz he kept sensationalizing the intra- Marketing, it could help After studying marketing campaigns team conflicts. Humor and Suspense KKR build up a strong and trends for several years, Indrajit brand value as well as - his two weapons- made the follow- “Jay” Sinha, an associate marketing generate enough TRPs on ers want more of it. professor at the Fox School of Busi- television. This article ness and Austrian marketing profes- analyses the different new sor Thomas Foscht, discovered that -age marketing techniques The result effective campaigns go against what with reference to the case traditional marketing preaches. They of the aforementioned Although Kolkata Knight Riders (KKR) kept up their dismal perform- have together published a book blog. “Reverse Psychology Marketing: The ance, they have emerged as the strongest IPL brand. According to Death of Traditional Marketing and the IPL Brand Value Scoreboard the Rise of the New Pull Game”, 2009 published by UK‟s Intangible which identifies and analyzes the Business in collaboration with MTI new marketing trends. Consulting, KKR tops the board with an estimated brand value of $22.3 According to the book -- “Traditional million. As Richard Yoxon, the Inter- marketing campaigns are focused national Director of Intangible Busi- around customer orientation. They ness puts it – “Winning games is not offer too much choice, confusion and enough to build a successful sports sales pressure, resulting in custom- brand. Teams need to engage the ers‟ boredom, cynicism and irrita- local community, attract star players tion. Less is more with present-day who inspire a wide audience and de- marketing. Customers now crave velop a strong marketing communi- simplicity, authenticity and exclusiv- cation program.” ity”. T HE LOOK ING GLASS
  • 12. P AGE 12 “Fake IPL Player” blog did exactly the same Interviews etc. But simulation and controlled thing. Instead of blowing its own horn, the conversations twist the facts to a certain ex- author tactically cooked up stories about in- tent thereby affecting the outcome of the data fighting within the team. This created a sen- analysis as done by market research agen- sation for the cricket crazy masses which in cies. turn strengthened the KKR brand. As market- ers put it “Any publicity is good publicity”. Uncontrolled conversation would let people There have been a few examples of successful vent out their emotions without any con- anti-marketing in the past. One such signifi- straints. This would in turn give marketers cant example is that of Steven Singer Jewel- better insights into consumer behaviors. lers. It has successfully executed a marketing Fake IPL player‟s blog generated a greater campaign – “I hate Steven Singer”. As a result buzz for Team KKR by encouraging uncon- it has become a landmark jeweler in the trolled conversation. Thousands of comments Philadelphia region. were posted in response to each blog post. This added flavor to the blog and generated Buzz marketing further interest in the blog as well as in the KKR team. This in turn resulted in the soar- Viral marketing describes any strategy that ing TRPs of the KKR matches. encourages individuals to pass on a market- ing message to others, creating the potential for exponential growth in the message's expo- The lesson sure and influence. Some claimed the Fake IPL player was a real life cricketer while others, at the same time, Buzz marketing is a viral marketing technique considered it a marketing gimmick of KKR, that attempts to make each encounter with a Shahrukh Khan et al. Though he did reveal consumer appear to be a unique, spontane- his identity in his own cryptic way, the Fake ous personal exchange of information; instead IPL Player remains anonymous as ever. What- of a calculated marketing pitch choreo- ever it may be, it has surely taught all estab- graphed by a professional advertiser. Al- lished and budding marketers a lesson. It‟s though the concept of Buzz marketing is not not about the big bucks spent on advertising new, but the way Web 2.0 is used these days, and promotion, but about innovative market- it has opened up several avenues for the new ing channels and creative strategies. Analyz- age marketers. Like viruses, such strategies ing the right media channel and the right take advantage of rapid multiplication to ex- creative message is far more fruitful than plode the message to thousands, and mil- some elaborate but outdated marketing and lions. promotion practices. This was the case with the Fake IPL Player. Welcome to the new „fake‟ world! The Fake IPL Player didn‟t spend a single penny. But he reached thousands. Overnight the blog became the talk of the town. He used Praneet Gourav Mishra is a 2nd Year student at IIM a simple and free user friendly web resource, Lucknow specializing in Marketing and Finance. He is a blogs, and spread through word-of-mouth “Mechanical Engineer” from NIT Rourkela and can be reached at communication. He realized the fact that get- ting one interested user (or customer) will eventually result in several others getting in- terested in the product. More than 8000 fol- lowers of the blog stand testimony to this fact. Uncontrolled Conversation: the mantra of new-age advertisements Traditionally brands discouraged uncontrolled conversation on social media and read too much into the controlled conversations in a simulated environment e.g. FGDs, In-depth
  • 13. P AGE 13 Effective Multi-tiered Promotions: Lesson from Santoor Trade promotions refer to any activ- for promotions across different ity aimed at providing an incentive Population groups (POP groups) to the channel members for their and outlet types (Retailer or Whole- support in marketing and distribu- salers). Then we will describe Multi- tion of the product. There are a tiered promotions followed by its number of tools available to the application by Santoor brand. In marketer for the same such as price -off, allowances, free goods, trade the end we will consolidate the shows, sales contests, specialty ad- learning of the study. vertising, etc. Trade Preferences for Promo- The importance of such measures stems from the fact that the retailer tions: Primary survey is willing to sell only those products which have a demand in the market A structured questionnaire was de- and thus allow him to earn a profit. signed and was pre tested on a These measures incentivize the ef- sample of 7 retailers at Hyderabad forts that a channel member puts in city. Out of 101 outlets visited, 9 for increasing the sales of a product said they are not interested in pro- and create a „push‟ in the channel motional offers so no further ques- which may lead to a higher sales tions were asked about the promo- turnover. The push effect is of spe- tions. The survey findings are sum- Sales promotion is an essen- cial significance in product catego- marized below: tial part of any marketer’s ries where the differentiation be- activities. It can be classified tween products is not very high.  Deal Proneness: It was found as Trade promotion and One such category is the FMCG. that 91.08% of the traders were Consumer Promotion The deal prone. Similar trend was authors conducted a survey Within the FMCG sector, the adver- observed across outlet types about trade promotion ac- tisement campaigns that are run and POP groups. tivities in the soap industry bring the customer to the retail store, yet at the point of sale there  Deal Preference: It was found and found out that different are numerous options available. At that 64.13% of traders prefer types of traders prefer dif- price-cut promotions while rest this juncture the retailer can have ferent kinds of promotions. an impact on the purchase decision. preferred gift based promotions Every company must offer Incentives offered to the retailer, by like gift articles etc. Considering promotional schemes which the company or the wholesaler, mo- outlet type, 60.66% of retail out- cater to the needs of all tivate the retailer to push the brand lets prefer price cut while types of retailers. One ap- and affect the purchase decision 70.97% of wholesaler preferred proach of integrating varied favorably. price cut promotions. Across promotional efforts is multi- POP groups, FLP retailers were Through our study we intend to find more inclined towards price cut tiered promotion. To show the relevance of multi-tiered promo- (76.19%) as compare to lower the effectiveness of this tions for such categories. We chose POP groups (OLP – 60%, 20K- approach, we have shown 50K – 41.16%). In order words soap category (INR 6500 Cr) as it is the promotion efforts of the biggest category in FMCG seg- lower POP group retailers were Santoor soap in a particular ment. Within Soaps, Santoor is the interested in gift based promo- quarter. 2nd largest brand in India in the tions. popular segment, and also the larg- est brand in Andhra Pradesh with a  Time of Incentive: 56.52% of market share of 37.07% of the total trade prefers instant gratifica- 3,374 tons per month. One reason tion while rest prefers long term for the leadership position attained benefit. It can be concluded that is the multi-tiered promotion policy there is a mix response in the of the company. In this article we market. Considering the outlet will present the primary survey con- ducted to identify trade preferences type, 67.21% of retailers prefer instant gratification because of T HE LOOK ING GLASS
  • 14. P AGE 14 wholesaler having considerate stocking sales for the company. If there is an appro- capability and pushing power tends to priate multi tiered promotion mix, the com- opt more(64.52%) for long term plans pany can effectively achieve its sales targets. due to extra margins involved. The same trends follow in various POP To substantiate our proposal, we provide em- groups. pirical data on the multi tiered promotion  Type of Incentive: It was found that used by Santoor soaps during Jan-March 48.91% of trade prefers assured prizes 2009, in the Andhra Pradesh market while 51.09% of trade prefers to try some luck. The similar response was The Santoor Way from retailers and wholesalers. Looking at the POP groups, the retailers from Santoor uses multi-tiered trade promotions lower POP groups (20K-50K) were more with different time duration and promotion interested (64.70%) in lucky draw. The mix. We will measure the effectiveness by wholesalers from Metro (62%) and OLP observing the impact of sales. The promotion (71.42%) were more interested in lucky schemes run by Santoor can be classified as draw and bumper prizes. in Table 2. Leanings from the survey – Secondary Scheme  Preferences of traders for different promo- tions changes across outlet type and POP Adding to the regular margins and “primary groups schemes” each sales officer has been allotted  Customization of promotion schemes nec- budget of Rs 15 per CFC for the “secondary essary for effectiveness of the same – a mix of schemes”. The Sales Officer can tailor price based and gift based promotions to cater schemes on the basis of it. These schemes to the different needs of different traders are tactical in nature which is used by Sales officer to meet the sales target. The schemes  Promotion schemes with different time- are QPS (quantity purchased scheme) to give lines are preferred by different traders due to extra margins and offers for bulk purchase. their inherent nature (outlet type, planning The trade schemes used during Jan-May horizon, etc) 2009 were: Multi-Tiered Promotion Specific trade plan Multi tiered promotion refers to promotional Wipro regularly announced long duration (2- schemes running simultaneously at the same 3 months) trade plan to motivate trade for time and complementing each other towards bulk purchase. We will discuss Tambola meeting the sales targets of the company. The scheme (Jan-Mar 2009) for this article, which different schemes may be price based or gift involved a lucky draw for the prizes (Spark based, follow different timelines individually Car, Bajaj Motorcycle, Air Conditioner etc). and complement each other. The offering of the different schemes is based on the discre- The unique feature, early bird prizes to kick tion of the Sales Manager – who may focus start the program was valid for a period of more on a particular kind of scheme for differ- first 21 days. One Early bird Ticket for a ent traders keeping in mind their preferences. zonal lucky draw was given if the trader ob- For example – there is a weekly scheme (price tains 50 Tambola tickets. The prizes were or gift based) running which motivates retail- worth Rs 300 to Rs 6000. ers to buy higher stocks every week. At the same time, there is a monthly scheme wherein Effectiveness of the Multi-tiered promotion the retailer can win a gift on purchases of a mix was reflected in the increased sales dur- specified number of units or earn a special ing the scheme period of as shown in Table discount. Now even though initially the re- 4. tailer may think that the monthly target is be- yond his reach and may focus on just the weekly scheme, by the last week of the month the weekly target achievement would have During the Tambola scheme, the company brought him within sight of the monthly tar- also ran consumer promotions summarized get. This position may motivate him to achieve in Table 5. the monthly target as well, leading to higher T HE LOOK ING GLASS
  • 15. P AGE 15 Table 1: Parameters for Primary Survey Table 2: Multi-tiered Promotion by Santoor (Source – Personal Communication) Table 3: Tactical Weekly Scheme "Secondary Scheme" (Source – Personal Communication) Table 4: Effect of Multi-tiered Promotional mix on Sales (Source – Personal Communication) T HE LOOK ING GLASS
  • 16. erences. They also were seeing higher  Flash Start – This phase saw the launch of customer purchases due to the rejuve- the Tambola Scheme, along with the weekly nated customer promotion campaign. schemes (price and gift based) and con- sumer promotion. The long term schemes Thus we see that each of the schemes was generally fail to motivate traders during ini- complementing the others, with the choice tial period. In order to kick start the plan, of offering price or gift based incentives lying Wipro introduced early bird prizes to give with the sales manager, the schemes. We traders dual incentive to participate in the see that the multi-tiered approach for pro- plan. The short term incentive though motional mix was followed leading to higher brought buzz in the market it was amply sales and success in the market. supported by tactical weekly schemes suit- ing both the preference, gift and price pro- Conclusion motion of traders. The weekly schemes in the first two weeks brought them close to the target for early bird prizes leading to The conclusion of the study is that the higher purchases in the third week. At the trader preferences for promotion schemes same time, higher push in the channel was vary, between price based and gift based complemented by a consumer promotion. incentives. The preference for the scheme So the traders were purchasing more to be horizon also varies with the size, type and eligible for weekly and/or early bird scheme nature of the trader. Some traders prefer while the customers were also demanding short term incentives which provide instant more of the soap. Thus, Multi-tiered promo- gratification while some prefer long term tion mix (weekly and early bird scheme) benefits. To be effective, a promotion mix helped Wipro to motivate traders to pur- needs to consider all kinds of traders. Multi chase more so as to be eligible for another tiered promotion is an approach for the tier of incentive i.e. Tambola scheme in its same, which can provide different types of first phase. incentives to different traders, vary the in- centive horizon, and integrate every simulta-  Mid slump – During this phase, the weekly neous scheme towards the achievement of schemes ran as before, the customer pro- the overall sales target of the company. The motion also ran without change. The overall approach has been used in the market by Tambola Scheme was also present, without Santoor, and effective execution can lead to the early bird scheme. The benefit of such a better results. strategy was that traders who had built high stocks in the first phase were able to clear them out. The consistency of con- sumer promotion was a deliberate attempt Abhishek Sood is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Commerce (Honours) from Sri to help trader in finishing their accumu- Venkateswara College, University of Delhi and can be reached at lated stock as superior change in consumer promotion would shift the consumer de- mand towards the freshly offered stock The Akhil Kumar Meshram is a 2nd year PGP student at IIM weekly benefits were for those traders who Bangalore. He holds a dual degree, Bachelors and Masters in were either not covered by the early bird Information Technology from Indian Institute of Information scheme, or were not interested in the long Technology and Management (IIITM) Gwalior and can be term benefits. They benefitted immensely reached at with the continuing weekly offers.  Late Push – In this phase, the weekly schemes continued as before, the customer promotion was changed so as to motivate trader to purchase more and at the same time, there was an increased focus on the Tambola scheme. The traders, who had been utilizing the weekly schemes, and early bird scheme were close to the targets for the Tambola scheme – and in their effort to achieve this target, they could utilize the weekly schemes which were mix of price and gift based promotion as per their pref-
  • 17. P AGE 17 4P’s of Indian Theatre Marketing Dharamveer Bharati and B.M Shah Theatre has been the soul of Indian Kutiyattam in Kerala. Noted con- entertainment since Vedic times. temporary playwrights like Habib The different forms of theatre acts Tanvir, Vijay Tendulkar, and Mohan in India have given an incredible and unparalleled versatility to In- Rakesh, Girish Karnad, Mahesh dian art and culture. The father of Dattani, Badal Sircar, Dharamveer Indian theatre Bharat Muni who Bharati and B.M Shah revolution- wrote Natya Shastra laid the foun- ized the art of story telling and mod- dation of structured training in ern theater. We must acknowledge field of theatre and dramatics be- the contribution of stalwarts like tween 200 BC and 200 AD. Theatre Prithivi Raj Kapoor, Sohrab Modi, as an art form in India has its roots during the Vedic period. But Ebrahim Alkazi , Amal Allana, Om in spite of such a long period of Puri, Naseerudin Shah , ShahRukh existence , theater groups are still Khan, Manoj Bajpai , Atul Kulkarni, fighting to make theater commer- Yashpal Sharma and Sima Biswas, cially viable. This paper discusses who popularized Indian theatre and Theatre needs mass some aspects of Indian theatre , then moved to the film industry. categorization of art , process of marketization to theatrical productions , 4P‟s of theatre marketing mix , the needs THEATRE: PRODUCTIONS & make it commercially of today‟s culture consumers , the CHALLENGES difference between the high art and viable. popular art , competitors to theatre McCarthy (2001), categorized arts in and challenges faced by Indian four broad sections i.e. Performing theatre groups. Based on the com- arts, Media arts, Visual arts and Digital marketing prehensive discussions with nu- literary arts. The second figure strategy coupled with merous theatre artists and theatre shows the categorization of arts. accessible locations for activists, the paper lays down stra- Performing arts is further subdi- staging live tegic outline for a theatre market- ing plan in India. vided in to theatre, dance, music performances will help and opera. Media related arts are in attracting large subdivided in to installation art, number of audience in a INTRODUCTION timely manner and thus film production and the recent addi- make Indian theatre a tion of computer/digital arts. Visual Theatre is an ancient aesthetic commercially viable arts have been categorized into practice in India. Surviving play business. texts and treatises suggest that painting, sculpture and crafts. The theatre existed in the Indian sub- last section, literary art is classified continent from the dawn of civiliza- into fictions and poetry. tion. According to the Natyashastra of Bharata, an exhaustive treatise Any theatre production involves a on the art of performance, drama series of rigorous steps. The second was a gift from the gods to the hu- figure shows the steps involved in mans. making a theatrical production and Theatre has travelled many centu- bringing it to the people. Theatrical ries in India. The different active scripts are conventionally sourced forms of theatre in India which are from historical writings or adapted still mesmerizing the art lovers are or written right from scratch. Once Bhavai in Gujarat , Yakshagana in the script is ready then it is sub- Karnataka , Nautanki in Uttar jected to production. Support and Pradesh and Bihar , Swang in inputs from musicians, choreogra- Haryana , Jatra in Bengal and phers, actors, costumes. Lighting Mohan Rakesh, Girish Karnad, and direction result in a presentable Mahesh Dattani,Badal Sircar , form of a theatre product. T HE LOOK ING GLASS
  • 18. P AGE 18 The second figure shows the marketing effort the masses. to reach culture consumers. The figure shows two triangles with a small and big base. The -As there is less and limited consumption of smaller base shows the existing marketing available high art, therefore popularity of art is effort and the bigger base shows the intended limited and this results in a decrease in audi- marketing effort. ence. As a result , those who want to produce popular art do not get sufficient funds to pro- The various new challenges in cultural con- duce commercially viable popular art. sumption are: decrease in consumer time for PROMOTION leisure, expansion of consumer options for entertainment, expanded exposure to world‟s The promotional strategies used by theatre cultural products, blurring the distinction be- production houses are very limited. Recently tween high and popular culture and changing few corporate houses have started funding the patterns in public funding. These challenges theatre production houses e.g. Matrix cellular, in cultural consumption have created a tough Vodafone, Religare, and Mahindra and Mahin- competition for the consumption of theatrical dra. These corporate houses use extensive products. publicity and advertisements for popular art but it has not resulted in creating an enduring audience. The traditional form of publicity techniques used by theatre production houses are as follows:  Occasional advertisements in leading news papers which occupy very small column width and do not create any lasting im- pression on potential audience.  Small printed pamphlets are manually dis- tributed outside the auditoriums. This only helps to inform the existing theatre audi- ence. This localized and captive distribu- tion does not create awareness to potential audience.  Few theatre production houses have 4 P’S OF THEATRE MARKETING started using cultural websites to promote their new productions on cost free basis. PRODUCT But the irony is that due to lack of funding and advertisements such cultural websites High art Vs Popular art: The principal problem are struggling. with the consumption of theatre products is the distinction between high art and popular art. The prominent and “talent rich” houses of  The other means of promotion is through theatrical productions like National school of word of mouth. But word of mouth promo- drama , Naya theatre and Rangshankara fail tions by existing audiences are not able to to distinguish between the consumption of generate enduring audiences. high art and popular art. In fact the artists with prime talent in these organizations be- Due to lack of funding, theatre production come so self obsessed that they never care houses use the cheapest means to promote about the consumption of their art for the end their new products. And mostly the auditori- consumer. They keep on producing high art ums which are used for such theatrical per- for which there is a limited audience and formances are situated in a few specific areas eventually no body is able to produce popular which are inaccessible to masses. Therefore art. There are two prime reasons for this: minimal promotional efforts are nullified by limited access to theatrical arenas. -Those who can produce popular art in a com- mercially viable way indulge in producing self fulfilling high art, which is seen by a handful and eventually making it non consumable for T HE LOOK ING GLASS
  • 19. P AGE 19 PRICE Theatre in India has struggled to reach break even point. Theatre production houses who hire or have fulltime / part time performers in it incur the expenses as shown in table 1. On an average, a theatrical performance in- volves 3 to 4 lead actors and 4-6 support ac- tors. Lighting personnel play a key role in designing the lights for the stage show and are generally hired by theatre groups exter- nally for specific periods. In general the thea- tre production houses keep single show on Product Place matrix Saturday and double shows on Sunday. This format is repeated for two weeks. This means The above shows the product place matrix for that in general six shows are performed for theatre productions. Following inferences can each production. The capacity of the audito- be deducted from product place matrix: rium is approximately 350.  High Art consumers are less and they reach The total expense of Rs 425000 is averaged for six performances in a span of two weeks. accessible as well as inaccessible places for Therefore the average charge for each per- art consumption. formance comes to about Rs 70000. And the average seating capacity of an auditorium is  Popular art consumers do not try to reach 350 , which means that in order to break to inaccessible locations but will reach in even each ticket shall be priced Rs 200.It is high numbers to accessible locations. difficult to ensure a full house in these per- formances and if the performance turns out STRATEGIES FOR THEATRE MARKETING to be a high art performance then the audi- ence drops drastically and the production It is a well accepted fact in marketing that if becomes commercially unviable. Therefore it you have problems in more than 2 P‟s of mar- is quite evident from the basic calculations keting mix then it surely means that the mar- that it is not profitable to run the theatre keter does not understand the segment of con- business with a specific and captive audi- sumers. In theatre marketing mix, it is evident ence. Theatre needs mass marketing to make that theatre production houses have serious it commercially viable. problems with product, price, and promotion and place as well. The key strategies for effec- PLACE tive theatre marketing are as follows: The places where the theatre products are  Correct segmentation of culture consumer distributed need good acoustic arrange- for consumption of different forms of art. ments, lighting facilities and pleasant ambi- Based on the segmentation, the different ence. Therefore‟ theatre production houses sections of consumers should be targeted rely heavily on a few select auditoriums. with specific theatre products and posi- These auditoriums are generally run by gov- tioned in accessible locations. ernment or small charitable trusts or some private hospitality organizations. Access to  Cultural organizations such as theatre pro- these places is limited to high end audiences duction houses or Government funded who have taste for cultural products. The en- theatre schools should diffuse the bound- during audience for these places is mostly ary between high art and popular art. And constituted by those who consume high art theatre artist should produce theatre prod- products and therefore theatre production ucts related to popular art. houses that produce popular art products , stage them in available select places are not  Based on the cost of theatrical productions able to attract mass audience. High art audi- it is quite evident that it will be difficult to ence does not attend such performances and break even with existing high art audience, thus creating a losing proposition for theatre therefore theatre production houses shall production houses. make their products available at accessible places such as cinema complexes, shop- T HE LOOK ING GLASS
  • 20. P AGE 20 ping malls and other community places. Finally, it can be concluded that Indian thea- Popular art lovers and high art lovers spend tre which exists in various forms in India has their time in public places such as mall and huge potential. It can be marketed to a mass cinema complexes. The cultural organiza- audience if proper segmentation of high art tions should partner with cinema complexes consumers and popular art consumers is to stage the live performances in such done. Digital marketing strategy coupled places. The cinema complex owners like Fun with accessible locations for staging live per- cinemas, PVR, INOX etc should be con- formances will help in attracting large num- tracted to spare at least one screen for live ber of audience in timely manner and thus performance and promote theatrical prod- make Indian theatre a commercially viable ucts in such spaces. business.  Theatre can become commercially viable by ACKNOWLEDGEMENT integrating mass marketing and mass con- sumption through low cost positioning, wide The author is thankful to the theater actors, communication and deep distribution. India directors and writers from Delhi‟s National is home to various forms of theatre in differ- School of Drama, theatre production house ent languages therefore a correct segmenta- ASMITA, Delhi, Rangashankara, Bangalore tion can help theatre become viable. and Prithvi theatre, Mumbai, for the inputs provided.  Catch them young: All of us become a rou- tine audience to film entertainment because Mukesh Sharma is currently pursuing his one year full time we are exposed to it through television from MBA (EPGP) from IIM Bangalore. He has spent more than 10 childhood days and thus we become cultur- years in automotive industry. He runs a non profit theatre group, ally habitual to it. Therefore a theatre cul- Performer Group, in Delhi. He has acted, directed and produced ture needs to be cultivated in Indian society various plays of social relevance in Delhi. and this can be achieved by partnering with educational institutes. In western world, Theatre in education constitutes an integral part of educational curriculum, which helps in cultivating a strong theatre culture in the Marketing Jokes!!! society. Theatre production houses, non profit organizations and Government shall Two women were shopping. When they started to discuss introduce Theatre in education (T.I.E) as a their lives, one said, "Seems like all John and I do anymore is compulsory subject in middle and senior fight. I've been so upset I've lost 20 pounds." school education. This will help in creating "Why don't you just leave him then?" asked her friend. art awareness and art consumers in our so- "Oh! Not yet." the first replied, "I'd like to lose at least an- ciety. other fifteen pounds first." Marketing moral: Ya gotta have a goal!  Digital marketing: Theatrical products are plagued from poor distribution and access A retailer was dismayed when a competitor selling the same problems. One of the crucial issues related type of product opened next-door to him, displaying a large to theatre marketing is the booking of tick- sign proclaiming "Best Deals." ets. Recently in few select cities some thea- Not long after that, he was horrified to find yet another tre production houses have tied up with competitor move in next door, on the other side if his store. digital marketers to allow web based book- It's large sign was even more disturbing—"Lowest Prices." ings but a large part of Indian theatre is un- After his initial panic, and concern that he would be driven touched to digital marketing concept. There- out of business, he looked for a way to turn the situation to fore a unified effort shall be raised to help his marketing advantage. Finally, an idea came to him. Next theatre production houses to market their day, he proudly unveiled a new and huge sign over his front products digitally to art consumers. door. It read, "Main Entrance!" The Difference Between Optimism, Pessimism & Marketing The Optimist says, "The glass is half full." CONCLUSION The Pessimist says, "The glass is half empty." The Marketing Consultant says, "Your glass needs re-sizing." T HE LOOK ING GLASS
  • 21. P AGE 21 Neo-Political Marketing Political marketing, simply put, is mar- There are numerous examples to il- keting designed to induce people to lustrate that Obama‟s campaign vote for a particular individual or a po- team understood the power of the litical party. It attempts to accomplish new media, such as the citizen jour- this by influencing citizens‟ thoughts nalists. When one blogger asked to on various issues. Although political go to the media section at a Hillary marketing uses many of the same con- Clinton rally in Boston he was cepts used in traditional marketing, it turned away (because he was "not a is different in the sense that ideas and real journalist") and had to cover it concepts are sold in political market- from the back of the crowd. In con- ing, rather than products and services. trast, Obama‟s campaign brought What is interesting to observe is the him up to the media section where evolution of political marketing he was placed with print reporters through the embrace of new technolo- from the major dailies and TV crews gies and distribution possibilities. In from the networks. this article, we attempt to provide a sense of these changes. Different as- President Obama leveraged his web- pects of political marketing in the US site, user generated content, blo- Obama’s landslide victory in are studied with emphasis on Barack gosphere and video games to engage the recent US elections has Obama‟s widely lauded campaign. The not just the donors and volunteers brought forth the corresponding aspects are analyzed in but all the citizens. A trademark of effectiveness of strategic, well the Indian scenario as well, while at- Obama‟s campaign was his appeal to -designed political marketing. tempting to understand the reasons the undecided voters and uncommit- for the differences observed. We also ted supporters through the Join Now Starting from the usage of an provide certain observations on campaign in his website. The use of effectively delivered, whether the Indian politicians can take social networking sites, especially consistent message across the a leaf out of Obama‟s book. „‟ during the different phases of the campaign as a message board for campaign, to leveraging the INTERNET & OTHER MEDIA USAGE local rallies, a virtual phone bank reach of modern technology where Obama supporters could call in raising funds from millions Emerging media and social networks undecided voters in Pennsylvania of common people, Obama are changing the rules of marketing. and a place to raise money. With has perfectly demonstrated Marketers across industries are slowly more than 2.6 million friends in the art of implementing a beginning to understand the impor- Orkut and Facebook, the Obama successful marketing tance of this new media. However, one campaign also capitalized on the well strategy. Though the Indian needs to realize that social media is known social networking sites. Such not changing the face of business mar- efforts were rewarded by the positive socio-political scenario is not keting alone, but that of marketing it- buzz that Obama received in the blo- exactly the same as the US, self! Its effects can be felt far and wide, gosphere. For his efforts, Advertising our politicians could surely and one of its most acclaimed applica- Age recently named Barack Obama benefit by taking a leaf or two tions was its use in Barack Obama‟s “Marketer of the year”, outperforming out of Obama’s book. 2008 presidential campaign. brands such as Nike and Apple. Some reasons for Obama‟s success However, Indian politicians too have were his willingness to experiment not been far behind in their efforts. with new communication tools and his understanding of the need for an It was just 5 years back, in the 2004 evolving communication strategy. If general elections, that the internet President John F. Kennedy pioneered was used for the first time in Indian the use of speech writers and a shift to politics. It started with the India television, and President Ronald Shining campaign of the BJP. Nearly Reagan harnessed the power of televi- 5% of the BJP‟s campaign budget sion to communicate his messages, was allocated to the e-campaign, for Barack Obama‟s team can be credited revamping its campaign website, with pioneering the use of internet, pushing out text messages, pre- social networking sites and mobile recorded voice clips and emails to its phones in a political campaign. database of 20 million email users T HE LOOK ING GLASS
  • 22. P AGE 22 and 20 million phone users, and offering cam- start the campaign and to register youth paign-related mobile ringtones for download. party members through the party website. Though BJP lost the 2004 elections, the ef- forts can be considered to be successful as it The advantage of these campaigns lies in its set the stage for the use of advanced technolo- cost-effectiveness. Traditionally, the urban gies in an election campaign. Since then, the youth have been known to shy away from demographic profile of India‟s electoral base elections. Now, the politicians have found a has changed and the usage of technology for way to reach them without stretching their attracting voters is increasingly being ac- election budgets. Fortunately for them, these cepted by the masses. methods are slowly finding more acceptances from people who represent different walks of This time around, a number of politicians life. have launched their own websites. The list includes prominent politicians such as L K The youth leaders can convey their messages Advani ( to lesser known names to a larger section of the masses and attract such as Vijay Kumar Malhotra (http:// more audiences through social networking and Mr. Ananth Kumar sites, internet sites and blogs. In the Indian ( According to the BJP, context, the usage of internet kiosks can be LK Advani‟s website has become very popular made more effective, by having a vernacular and receives over 250,000 hits per day. Ad- medium of interaction and training programs vani is also on Facebook, Orkut and YouTube, can be conducted for the people who haven‟t while his colleague and Gujarat chief minister accessed the internet before. Sites similar to Narendra Modi, uses tools such as podcasts, „‟, can be used to main- Twitter, Google SMS and widgets. Indian Na- tain a rapport with undecided voters. Also, tional Congress‟ youth wing leader, Rahul given the increase in the number of bloggers Gandhi, has over 3,000 supporters on Face- in India, the opinion of citizen journalists book. The Advani@Campus initiative seeks to about the party can help increase the num- build a grassroots volunteer campaign “to con- ber of volunteers, as more people would read tact and mobilize young voters in thousands and be influenced by microblogs. of college campuses across the country” FUND RAISING The leftist Communist Party of India (Marxist) is not too far behind either. Though the politi- Traditionally, fundraising for elections has cal party does not favor digital technologies majorly relied on industrialists and lobbyists. (since it replaces human labor), it has shown This applies both in the US and Indian con- a clear preference for cyberspace-enabled texts. Take for example, George Bush‟s fund propaganda ( for their election raising campaign for the American presiden- strategy of 2009. The CPI(M) has even admit- tial election in 2000. He successfully created ted that since 54% of the Indian voters are a muscular network of „bundlers‟ (designated youngsters, the internet may be the best me- by him as „Pioneers‟ and „Rangers‟), each of dium for reaching out to them. Parties have whom committed to bring in $100,000, even gone to the extent of wooing those not $200,000, or more from friends and associ- residing in India, such as the website created ates. These bundlers were typically high- by the Telugu Desam Party (http:// powered CEOs and lobbyists. for U.K. based non-resident Indians. The Indian context is not very different. Apart from the significant portion of funding that Indian National Congress has taken a step comes through black money, a huge share ahead of just promoting the party and has comes from formal business funding. In fact, chosen to project India as one of the most the recent tax exemption to the corporate sec- technologically advanced nations. Through its tor for political funding is expected to signifi- Jai Ho video campaign, based on a song taken from the much acclaimed film “Slumdog Mil- cantly raise the contribution from this sector lionaire”, Congress has shown the way to go and bring about higher transparency. In the for election campaigns in India. In terms of recent parliamentary elections, the major using technology as a means of garnering vol- backers of the Congress party were the unteer support in India, the Congress party, Aditya Birla group and the Tatas, while the during the most recent election, had set up 50 BJP received substantial funding from the internet kiosks in the State of Gujarat, to kick Sterlite group of Anil Agarwal and the T HE LOOK ING GLASS
  • 23. P AGE 23 Gujarat-based Adanis. In fact during the period Obama could have attacked the incumbent of 2003-07, the two parties raised close to Rs. government, he did not take up a negative 53 crores through such sources. In this context, campaign dwelling on just the opposition. Obama‟s fund-raising strategy stands quite Rather, policy details on how to achieve the unique. Almost half of Obama's unprecedented change he sought to deliver formed the major $639 million in funds raised from individuals focus of his campaign. However, he did not fall came from small donors giving $300 or less. shy of attacking the incumbency and the op- position when it was needed. The role of internet in Obama‟s fundraising can- not be overemphasized. The internet provided a Consistency in message also played an impor- quick, cheap and far less intimidating way of tant part in the success of Obama‟s campaign. fund raising for political novices as compared to This consistency was manifested across the getting big cheques written. Notably, some of various platforms of message delivery – Obama‟s campaign groups had set up systems speeches, debates, infomercials, and blogs. by which donors could have their credit cards Through this lesson in successful integrated billed automatically in easy-to-budget monthly marketing, he was able to achieve coherence amounts of as little as $20. The significance of in the minds of the public. In fact, marketing Obama‟s viral fund raising wasn't just in driving strategist David Meerman Scott recalls asking up dollar totals. It is widely accepted that such a group of 300 people in Riyadh to think about a personal approach in massive fund-raising the one word that that they felt the Obama resulted in millions of donors feeling personally campaign stood for. The unanimous response connected to Obama. They later turned into from everyone was „CHANGE‟. Had that exer- door knockers and phone bankers to support cise been repeated for John McCain, Hillary his campaign. Clinton, John Edwards, and Mitt Romney, it is fair to say that people would have had a hard There are very good lessons for Indian politi- time figuring out a word, let alone the word cians in Obama‟s massive viral fund raising. being the same. Even supposedly smaller as- There is a huge section of the Indian middle pects of the campaign such as the logo (shown class that keeps itself aloof to politics. If our in Exhibit 1 below) were used to communicate politicians are able to tap in to this segment, the same message to the public: the „O‟ stand- even funds of the order of Rs. 20 - 50 per ing for Obama, the blue and red colors used to household would result in a huge fund due to represent the US flag, the red stripes indicat- the sheer size of this electorate. But here we ing farmlands, and the O‟s whitespace symbol- also need to pay specific attention to the Indian izing the sun shining over the plains evoking context. Unlike the US, internet penetration is sunrise. On the other hand, as can be ob- quite low in India. So the parties need to think served, there is very little symbolism present of other cost-effective means of fund raising. in the other candidates‟ logos. Mobile phones, with their rapidly growing pene- tration among the Indian middle-class, can be a On the contrary, in India, we find that there is good option. Political parties can probably enter both a lack of content and inconsistency in into agreements with mobile service providers the messages communicated by most political and raise funds through premium rate SMSes parties. However, there is no dearth of vague (the way reality television programs make peo- symbolism attempting to bring together citi- ple send premium rate SMSs to express their zens and communities of diverse characteris- support to specific candidates in the show). tics under a common umbrella. Consider the example of the BJP, whose purported aim is to MESSAGE STRATEGY bring in Ram Rajya (Rule of Ram). While such a concept draws upon mythology and people‟s There are two main parts to the success of beliefs bringing to their mind some kind of a Obama‟s message communication strategy. One vision of an idealist society, it does not really is the content of the message and the other is say anything about the policies to be adopted the consistency of its delivery. The content of by the party in any domain such as education Obama‟s message was one of hope, change, and or foreign policy. On the other hand, the Con- gress‟ choice of the Aam Admi (Common Man) inclusion – ideas that resonated with the major- appears to be more appealing and in tune with ity of Americans reeling under a crisis of confi- how a vast majority of the voters perceive dence both in the economy and in the nation‟s themselves. Consistency in the message con- identity in terms of its foreign policy. In spite of veyed at the national level is something that is the fact that there were lots of issues where seriously lacking. With the necessities of coali- tion politics and rise of regional players, a T HE LOOK ING GLASS
  • 24. P AGE 24 party‟s message and what it stands for often Thirteen amazing facts about Google gets lost in the scramble for power. This was witnessed during the run-up to the 2009  Google receives daily search requests from all over election results as each party, from small to the world, including Antarctica. the large, „kept their options open‟. As Shek- har Gupta puts it, we have entered an age of  Google’s Home Page Has 63 Validation Errors. ideological fungibility. While it is not fair to Don’t believe us? Check Google Validation criticize this and probably irrelevant to com- pare with the Obama campaign (very differ- ent political systems and socio-economic  The infamous “I’m feeling lucky” button is nearly structures), it does appear probable that the never used. However, in trials it was found that confusing messages and inconsistency be- removing it would somehow reduce the Google tween what is conveyed and what is done to experience. Users wanted it kept. It was a comfort take advantage of short-term benefits will button. only result in diluting and alienating the supporter base of a party and erode its  Due to the sparseness of the homepage, in early brand value. user tests they noted people just sitting looking at the screen. After a minute of nothingness, the The marketing story of the Obama campaign tester intervened and asked ‘What’s up?’ to which as well as those of the other aspiring politi- they replied “We are waiting for the rest of it”. To cians in India and the United States can be solve that particular problem the Google Copyright considered to be immensely successful, irre- message was inserted to act as a crude end of page spective of them winning or losing. This is marker. because of the increasing application of technology and marketing concepts in a field  The name ‘Google’ was an accident. A spelling mis- like politics, which has a lower preference take made by the original founders who thought among the MBA graduates, at least in India. they were going for ‘Googol’. However, there is still a long way to go be- fore we can start talking about having  Google has the largest network of translators in the branded politicians and parties which com- world. mand a huge brand value!! Abhilash Sridharan is a 2nd year PGP student at IIM Ban-  Employees are encouraged to use 20% of their time galore. He holds a Bachelors degree in Metallurgical Engineering working on their own projects. Google News, Orkut are both examples of projects that grew from this from IT-BHU Varanasi and can be reached at ab- working model. Google consists of over 450,000 servers, racked up in clusters located in data cen- tres around the world. Arun Manohar is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Electrical Engineering from Indian  Google started in January, 1996 as a research pro- Institute of Technology (IIT) Madras and can be reached at ject at Stanford University, by Ph.D. candidates Larry Page and Sergey Brin when they were 24 years old and 23 years old respectively. Venkatasubramanian S is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Computer Science from  ‘Googol’ is a mathematical term 1 followed by one CEG, Anna University and can be reached at hundred zeroes. The term was coined by Milton Sirotta, nephew of American mathematician Ed- ward Kasne. Vivek R is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Electronics and Communication Engineering  Number of languages in which you can have the from College of Engineering, Anna University and can be reached Google home page set up, including Urdu, Latin and at Klingon: 88 (Eighty Eight)  Google translates billions of HTML web pages into a display format for WAP and i-mode phones and wireless handheld devices. T HE LOOK ING GLASS
  • 25. P AGE 25 Strategic marketing for Educational Institutions Apart from a few conspicuous excep- perform. The priest class, the Brah- tions, the answer to all the above mins, were imparted knowledge of questions lies in one simple word, religion, philosophy, and other an- education. And hardly anyone would cillary branches while the warrior disagree with me when I say that it class, the Kshatriya, were trained holds much more prominence in the in the various aspects of war- Indian context. Yes, that‟s true. fare.The business class, the Vai- Throughout your lifetime, education shya, were taught their trade and is one of the most important things, the lowest class of the Shudras was rather the most important at some generally deprived of educational occasions, which goes on in your advantages.The book of laws, the mind either consciously or subcon- Manusmriti, and the treatise on sciously. Our parents spend their life- statecraft the Arthashastra were time earning with their sweat and among the influential works of this blood to ensure a decent and possibly era which reflect the outlook and the best education for us. understanding of the world at the time. But does the role of education as an economic agent limit itself at the edu- Apart from the monastic orders, cational institutes only? Let‟s just institutions of higher learning and have a quick look around us before universities flourished in India well we jump to a conclusion. Or let‟s just before the common era, and contin- turn on our Television sets. And ued to deliver education into the ahoy!!! We are flooded with companies common era. Secular Buddhist in- providing services like education stitutions cropped up along with We start this article with a loans, child life insurance and many monasteries. These institutions im- few obvious yet more. So, I guess we can safely as- parted practical education, eg. interesting questions. sume that education as an economic medicine. A number of urban What was the first thing agent goes much beyond the primitive learning centres became increas- that came to the minds of concept of schools and universities. ingly visible from the period be- your parents when you tween 200 BCE to 400 CE. The im- were a 4 year old toddler Now that we have established the im- portant urban centres of learning playing around expertly portance of education as a self sus- were Taxila and Nalanda, among with the Lego building set taining and most importantly, a sup- others. These institutions system- gifted to you by your porting agent to other industries and atically imparted knowledge and aunt? What was the most services, let‟s just contemplate what attracted a number of foreign stu- important question facing exactly the education sector is doing dents to study topics such as logic, your family when you had for its own popularity or publicity. grammar, medicine, metaphysics, set foot in class Xth or arts and crafts. But before we critically examine and XIIth? And going by the draw conclusion in the later part of current trends, what was Following independence in 1947, on the top of your mind this article, I would request the read- ers to treat education as just another Maulana Azad, India's first educa- when you were in your industry. By saying this, we in no way tion minister envisaged strong cen- final year of graduation? are trying to undermine the impor- tral government control over educa- tance of teachers and our Alma Mater tion throughout the country, with a in our lives. We will always be in- uniform educational system. The debted to them for what we are today. next big breakthrough in the edu- But my request will lead us to a logi- cation sector came with the privati- cal and thoughtful analysis of strate- zation of education in India. Along gic marketing in the education sector. came a new wave of colleges mush- rooming through the length and Monastic orders of education under breadth of the country. Education the supervision of a guru was a fa- as an industry was seeing a new vored form of education for the nobil- dawn with some big corporate ity in ancient India. The knowledge in names entering the arena. This was these orders was often related to the essentially the time when the need tasks a section of the society had to of „differentiation‟ arose. T HE LOOK ING GLASS
  • 26. P AGE 26 The need to provide students with a cause/ ting by sales representatives and agents, motivation to join college ABC instead of scholarships & use of alumni. Amidst all the competitor‟s XYZ was what propelled the this little or no attention was paid to the education sector to turn towards big time quality of infrastructure inline with the need advertisement in electronic, print and other of international students in the home uni- modes of mass media. And now, education versity. However, this approach is now fac- is a global product with institutions world- ing many problems, some of which include wide competing for students and finding increased competition from the national (& ever more creative ways to satisfy student not only international players) and a focus needs and preferences. With the continuing on the students‟ demands with increasingly rise in the preference for flexible distance available choices and information. Hence, to learning, educational institutions are finding change this we require a resource demand- that when students and faculty have signifi- ing transformation process. The foreign uni- cantly different cultural backgrounds and versities need to rethink their strategies learning styles, the expectations of the and invest in quality infrastructure, staff learning experience can be unfulfilled. and facilities. Also, with an increasing num- ber of international universities offering But when you see education as an industry, similar courses at similar prices at multiple the main questions that come up are: - locations, the threat of commoditization of education looms large. The pertinent ques- „How far are educational institutions really tion which the foreign universities must ask “customer-oriented”? themselves is “can they differentiate them- selves on the student experience instead of Do they choose the most appropriate market qualification?” The answers to all these segments for their organization‟s strengths? questions have been found out by the for- Is there consistency between the segments eign universities in the following ways: - targeted and their product offerings?  Going alone is becoming increasingly How far are they aware of the complexities of difficult so renewed focus on partner- the decision processes of the “buyers”? ships and collaborations Is it appropriate for educational institutions to  Growth of private sector provision and become “marketing-oriented”? transfer of provisions from public sector to private sector So in the light of the above questions let‟s now analyse the different possibilities in the  Joint venture public-private partner- education sector where marketing can be ships applied to get favourable results. The main sectors picked are foreign education setup  Renewed focus on experience, reliability, and distance learning programs. safety and employability of foreign stu- dents The first sector we pick up is the foreign education sector. According to the latest sta-  Interoperability- credits and recognition tistics, 2.2 million students study abroad between home universities and foreign worldwide and the numbers are estimated to institutions grow beyond 3.72 million by 2025 (IDP, 2007 forecast). The leading 3 destinations  Improving the cultural outlook of the for international students reap in excess of universities USD 45bn$ annually. But don‟t let these  Focus on networking through internet mind boggling figures confuse you. Being like social networking sites truly international is no longer an option. Positioning and focus in a competitive envi- Moving on, lets study the application of ronment, creating and investing in assets to marketing principles, to the educational in- support internationalisation, global partner- stitutes, through the very famous 4P ap- ships and alliances and creating a brand proach and analyse what can be their differ- dialogue with the students are a few among entiating factors : - many initiatives of the foreign universities. The traditional marketing approach was pri- marily based on the focus of sales, globetrot- T HE LOOK ING GLASS
  • 27. P AGE 27 Moving on to the last section of the article, we PRODUCT shall see the future of marketing techniques in Some authors suggest that education is a prod- the educational set up. The first point we con- uct. For example; Kaye suggests looking at dis- sider here is the referral system of marketing tance education as a product instead efficiently which though has been used for quite some use our resources, the needs of the student/ time, finds an increased relevance in the cur- consumer should be assessed. By doing so, we rent scenario. As more and more foreign uni- can learn from the students and then apply versities are wooing students of Indian origin to that knowledge to attract future students while pursue courses offered by them, referral mar- meeting the needs and improving upon the ser- keting may be an Innovative tool in their mar- vices offered to the current students. The prod- keting efforts. For this we should be well con- ucts have a different name, logo, colour and versed with the concepts of relationship mar- physical attributes. We can say that distance keting. Relationship marketing, as the name education institution is a brand and a brand is suggests, means developing long-term bonds a way of differentiating one product from an- with users by making them feel good about other; the greater the perceived similarity of how an institution of higher education relates products, the more important the brand in es- to them. The idea is to develop and maintain tablishing the differences. Some schools will strong personal relationships, feelings based clearly feel that they are different from others, on positive interactions and perceptions. In or that the market perceives differences, which many ways relationship building and mainte- makes it less important for them to establish nance is the essence of marketing. The market- their corporate identity. ing exchange process is used to build and maintain positive relationships with continuity and consistency. A good way to begin relation- PRICE ship marketing is to build concentrated core This concept embodies more than a value that groups of key target audiences and focus atten- someone will pay for it. The meaning associ- tion on that group, with the idea of creating a ated with price changes is contextual. Institu- "ripple effect" as members of that group help tions have different pricing policies and all in- carry the school's messages to their friends, stitutions compete against each other to in- associates and colleagues. Referral marketing crease their application and enrolment rates. i.e., making use of existing students to canvass Pricing policies will impact student choice be- for potential students is being practiced by for- tween institutions. eign universities. The existing students are per- ceived as important among stake holders. Hence, the concept of referral marketing can be PLACE a boon for the Indian educational set ups It is a means of getting the product into the which are struggling to retain their students in consumer‟s hands. The personality of the place the wake of increased foreign competition. sends messages to the target audience. The vehicle which is used to reach the students can So much is the importance of marketing in the be a physical location or a virtual space where educational set ups that there have been re- the connection speed of internet used, e-mail, search papers about quantifying the demand can serve as a differentiating mechanism. forecast in the future. I would like to wrap up this article by a simple yet powerful quota- tion : - PROMOTION “marketing is not about trickery or even insincer- Promotion is a means of communication be- ity, it‟s about spreading ideas you believe in, tween the seller and buyer. It includes adver- sharing ideas you are passionate about, and tising, public relations, personal selling, pub- doing it with authenticity. Its important to real- licity, and sales promotions. If one higher edu- ize that‟s it is easier to grow with happier people cation institution wants to enrol more students than it is to find new strangers to accost” than other, it will need to use corporate adver- tising or engage in activities that create a liai- -Seth Godin son between the students and the institutions. Publicity provides media coverage to the insti- tutions and visibility can create confidence about an institutions reputation and quality Mafla Mudgal is a 1st year PGDM student at IIM Calcutta. He perceptions. holds a Bachelors degree in Mechanical Engineering from Delhi Col- lege of Engineering and can be reached at T HE LOOK ING GLASS
  • 28. P AGE 28 Welcome to Marketing, the third epoch! The first epoch of marketing was the this era. ,Some of it leading to micro most stretched. The early seeds of - segmentation, and consequently our profession were laid somewhere brands making that extra effort to in the wake of the Industrial Revolu- establish consumer connect, and tion and continued till the early part moving from the rational to the irra- of the last century. This was the tional and then beyond. period when products started being This leads us to the third epoch of invented to meet basic human needs marketing. What is it? When did it – the electric bulb, the motorized start? Was it the advent of the inter- car, the safety pin – and thus set the net? I‟ll address the questions in stage for elementary definitions. reverse. As I said at the start, no We are in the middle of a This era was also completely prod- this is not just about the internet great revolution in uct centric, and focused on manu- and internet marketing. The advent marketing deed and facturing – a car provided transpor- of the internet was perhaps the cata- corresponding thought. I tation, a bulb light and so on. Much lyst for change and accelerated the must admit it was a of marketing revolved around ensur- transition of marketing from the pre- struggle not to call this ing the transfer of the good from the vious era. Infact, as often said the “Marketing 3.0”. However, this sobriquet manufacturer to the user and all the internet is to the 21st century what has already been usurped elementary functions required to electricity was to the 20th. The by many marketing make it a success, including avail- ground-work of this marketing era scholars and practitioners ability and communication. In In- had thus started a couple of decades of the current era to dia, we experienced this era much earlier and we are now in the midst define different aspects after independence given the overall of it. and offshoots of internet shortages and a nascent manufac- This epoch is all about Experience led marketing. I am not turing industry being set up. Marketing. This epoch marks the going to suggest that all The second epoch of marketing saw demise of classical marketing marketing in the current many success stories through the thought, and instead brings to the era is equal to internet late 19th and most of the 20th cen- forefront multiple possibilities in the marketing (though much tury. This epoch also saw the tran- sphere of marketing. There are three of it is related to the sition of marketing from selling different vectors of change in this internet in some way or products to establishing brands. epoch, best represented as the evolu- the other), and thus the The advent of more players saw the tions across consumer expectations, need to stay away from resultant increase in options, and customization and computer or tech- the debate of Marketing led to the need for “differentiation”. nology innovation. 3.0. Instead the heralding It could be in terms of the rational Consumer behavior and expectations of the third era of like form, feature, cost, shape, size, have changed dramatically over the marketing! To reach the color or even in terms of irrational, last few decades. Today consumers tenets of the current era, it emotional, psychological attributes. are (always) accessible, connected, is important to give a The holy portals of most marketing demanding, empowered, intelligent, quick dekho into the past theories, philosophies and frame- skeptical and even vengeful. They from my perspective and that will also help lay the works as we know it today were built lack patience, have no loyalty and evolutionary path. for this era. You thus had the “4 P‟s are pressed for time. They don‟t of marketing”, defined your “target wish to be interrupted, sold to or segment” and build a “brand posi- campaigned any more. The basis of tioning statement” and tried to build products, brands and thereby mar- “consumer loyalty”. This period ac- keting has changed completely. The tually saw the maturing of market- old and dated concepts don‟t hold ing thought into an important field any more. A brand has to be crea- of theory and practice from both tive, engaged and hopefully relevant. academicians and business. The This epoch continues to question the progress of fast moving consumer gospels of marketing thought. As goods like soap, tooth-paste, deter- one of the senior managers of this gent etc provide a graphic represen- company put it: What happens to tation of the evolution of the second the principle of 4P‟s of marketing, if epoch of marketing. Even today, three out of the four P‟s are zero? many marketers continue to derive The brand and company in question? succor from the building blocks of Google! Their products are free, the T HE LOOK ING GLASS
  • 29. P AGE 29 Epoch First Second Third Time-Period 1760 – 1850 1850 - 1980 1980 till today Marketing Focus Product Brand Experience Proposition Functionality Differentiation Engagement Appeal Rational Emotional Sensory Association Availability Loyalty Commitment Life-cycle Eternal Long Ephemeral company doesn‟t really advertise and there isn‟t is what it does, where it fits in one‟s life and any specific placement of its products. This ep- most importantly how it makes you feel. och of marketing is based on a foundation of Many brands are redefining their framework technology, and the immense possibilities that from being a packaged good to a complete ser- technology can enable. And the internet pro- vice. Personal products brands moving onto vided the catalyst for bringing these possibilities personal care are one end and Luxury brands to the vast multitude of humanity in the best, extending their portfolio to provide a range of fastest and most impactful manner. accessories and accruements is another. The onset of this era is perhaps best reflected This is the new realm of marketing. And as with the emergence of a brand whose experience marketers we need to define what really we can't be equated with any sensory aspect – wish to create in order to make an impact here. touch, feel, hear, see or taste. An ingredient We therefore need to figure out a complete en- brand which signifies trust and reliability, and a gagement plan with the consumer appealing promise of technology innovation. And a brand across different touch points, and to multiple which has constantly stood as guarantor of senses. We need to provide a holistic experi- break-through computing performance. The ence which communicates the tenets of the brand in question? Yes, Intel. The Intel brand brand and expect the consumer to thus connect has created the world‟s best known, longest ever with it, and hopefully when she needs spend and most extensive co-operative marketing cam- time or money to acquire it. paign “Intel Inside” and its signature bong is The Marketing Epoch‟s if tabulated across dif- heard every minute, somewhere in the world! In ferent brand elements would look like the table today‟s era the marketplace has become clut- shown. Above. tered with a plethora of choices. At the same time consumer demands have evolved to a level of “soya milk froth free decaf latte” granularity. Mr.Prakash Bagri is currently Director of Marketing, Intel South Technology innovation is the driving force be- Asia. We, as editors of this digest, are thankful to Mr.Prakash, an hind this accelerated evolution. And there are expert with more than a decade of marketing experience, for sharing his technology tools which help marketers meet this industry insights on the evolution and future of marketing. role. Customization and personalization is de rigueur for a brand to stand out amongst the clutter. Though marketing has to be non- invasive, the brand has to still attempt engage- ment and interaction with the consumer. To- day, consumers expect their brands to be hon- est, transparent, socially conscious, environ- mentally friendly, participative, co-operative etc and in return they reward you with their time, attention and hopefully, their money. This has to be unobtrusive, responsible, apolitical and still impactful. Today, brands shouldn‟t seek loyalty, but instead hope that they can interest and engage the consumer and thereby win their commitment. In other words, in this era the one who stands out (and it could be a brand, prod- uct or service and more likely a combination of all the three) is one which is able to engage with customers in a holistic manner appealing to their senses and thereby establishing an emo- tional connect with them. The brand experience T HE LOOK ING GLASS
  • 30. P AGE 30 Sidestepping the Commoditization of Disruptive Innovations We live in a world today, where every Marketing as a function plays a key organization is constantly on the role in the effective delivery of any lookout for means to differentiate value proposition, be it a product, itself from the others that comprise service or in any form for that mat- its industry; for ways to achieve sus- ter. After the core operation, it is tainable competitive advantage; and marketing that ensures that the tar- in very, very simple terms, for ways get consumer segments are reached; to survive. In this milieu, one often and that the external gaps in value comes across strokes of genius, delivery are minimized. Given the which in the blink of an eye, set a significance of marketing, we would particular market player apart from look at the core issue through two the crowd; and in the process, rede- viewpoints: fine the way business is done, and even looked at in that industry. An 1) Managing innovations in the mar- event of such a scale and scope, is keting domain, so as to be able to de- often what one would call a disrup- rive sustainable competitive advan- tive innovation. tage from them. A disruptive innovation is one which 2) Capitalizing on core innovations by Today’s business leveraging upon a sound, directed breaks the continuing stream of in- environment is cremental i mprovements an d marketing campaign. characterized by intense competition, directed changes, to radically alter the devel- opment, and very conception of said Coming first to marketing innova- primarily at the basic need tions, one can readily observe that to survive. In such times, product/service/industry. And as is the case with any mine that strikes the marketing strategies adopted by firms continuously watch gold, this newly irresistible area be- a firm should be determined to a out for avenues by which comes the hotspot for all firms con- great extent by the existing brand to gain competitive advantage over other sidered worth their salt. In indus- perception that it enjoys. Discount- industry players. tries unlike Pharmaceuticals, where ing cases of deliberate image make- Disruptive innovation, a concrete protection mechanism overs (which entail a separate, dedi- referring to a concept that (read Patents and the like) is absent, cated campaign altogether), one can can radically alter the the competitors are quick to repli- see that a gauche mismatch between trajectory of the industry cate the product/service/model, the brand‟s identity and the new of- itself, is an attractive with augmentations inherent to their fering portrayal can lead to unde- respective firms. Thus, what had sired confusion and ambiguity in the alternative for firms. been a breath of fresh air to con- impressionable consumer psyche. However, we consider the sumers a week back, is suddenly Thus, due consideration to this fac- next phase wherein these spreading all around, and halfway to tor, and adequate preparedness for very innovations could get becoming the next homogeneous the same is necessary to ensure that commoditized, with more commodity. And with that of course, an ingenious innovation does not players engaging in similar over time the idea loses its initial backfire, and then to make matters endeavours. We look at sheen, wearing itself off from over- worse, play straight into the hands of the factors that could help use and exploitation. the more suave competitors. prevent such a Economists and game theorists Coming to the issue of commoditiza- phenomenon, and the would refer to this phenomenon of tion with respect to disruptive inno- means to effectively decaying valuation as “Tragedy of vations, we can see from the very leverage upon the the commons” or “Decreasing mar- outset, that such a mass replication marketing function. ginal profitability”, both of which is possible only when the entry barri- symptomize the winding trails of ers for such an introduction are ei- commoditization. And it is here, that ther too low, or easy to transcend. we endeavour to step in, and if not Thus if a retail chain were to offer a devise a way out of this piece of oft drastic 70% off Sale once a month, repeated history, then at least sit then it alone would not serve the down with it, and get to know it bet- purpose of truly differentiating it in a ter! sector growing at a frenetic pace. T HE LOOK ING GLASS
  • 31. P AGE 31 Put another way, if such an initiative is not source comes to the fore, as a point for poten- backed with the requisite supply chain and tial differentiation: the people in the firm. sourcing efficiencies, it won‟t be long before Thus, it may be seen, that often it is the firm’s the firm starts to bleed. And to make mat- ters worse, other more lean competitors human resources that form the core of its mar- could then launch a similar programme, keting strategy, highlighting how the people only more aggressively and credibly posi- contribute to adding unique value to the tioned to deliver. particular firm. Examples of this strategy To take the previous example one level abound, from Intel‟s “Superstars”, to higher, there might be a phase where all in- Google‟s famed “20% time” policy. And with dustry players are more or less in similar this, strategically aligned HR processes en- phases of maturity and efficiency. In such a ter the fray for sources of sustainable com- case, a soundly backed discount sale initia- petitive advantage. tive would be easily replicable, and this could over time lead to a flood of such offer- Thus, to conclude, one may note that dis- ings, and even to the consumer growing in- ruptive innovations by themselves, devel- creasingly indifferent to them. When such a oped on an unsustainable model can never stage is reached, it is the beginning of the be of use to a firm. On the contrary, such an end of the value for what had once been a effort shall more often than not end up be- unique innovation; the commoditization has ing in the firm‟s detriment. Further, such kicked in. endeavors must be based on fundamentals that are intrinsically hard to replicate for others. Finally, the marketing strategies should be designed in a way that does not Thus, to counter the forces that lead to a conflict with the image of the firm, and if it collective exploitation of an idea that an en- is aimed at a repositioning, then it needs to terprising firm brings to the market, the firm be adequately armed. in question must ensure that there is more going for it than just the “first-mover‟s ad- vantage”. That is, the innovation must be rooted in something that is quintessential to Anand Justin Cherian is a 2nd year student of IIM Cal- the firm, like its unique work culture, lead- cutta, specializing in Behavioral Sciences and Systems. He holds a ership vision or even something more tangi- Bachelors degree in Information Technology Engineering from Netaji Subhas Institute of Technology. In his free time, he likes ble like restricted access to sources/ blogging, painting and photography. He can be reached at an- suppliers. Further, it must be noted that if such a commoditization were to indeed take place, then it is not only a loss for the firm that introduced the concept, but more sig- nificantly it is an opportunity lost for the Varun is a 2nd year student of IIM Calcutta, specializing in industry as a whole. And the solution to this Marketing. He holds a Bachelors degree in Mechanical Engineer- problem is not to form a cartel and fleece ing from Delhi college of Engineering. Prior to joining IIM Cal- the pennies out of a society slowly starting cutta he has worked with IBM and Royal Bank of Scotland, for to walk on its aspiring, middle class feet; a total of 3 years. He can be reached at va- rather, firms would need to constantly inno- vate in a manner that accords to each one of them a niche pocket through which to grow, overlap and compete. With time, consolida- Sarang Shahane is a 2nd year student of IIM Calcutta, spe- tion is inevitable in a fragmented industry, cializing in Marketing and Finance. He holds a Bachelors degree and in the case of one that is concentrated, in Information Technology Engineering from NIT Durgapur. one can then look forward to epic marketing Prior to joining IIM Calcutta he has worked with Amdocs Ltd battles, a la the Cola wars. In either case, for nearly 2 years. He can be reached at firms would be required to dig deep and come up with some one thing that is unique in them. In this regard, when it comes to differentiating yourself, especially in an industry where the core product/service is easily commoditized (low cost airlines, retail etc.), one essential re- T HE LOOK ING GLASS
  • 32. P AGE 32 Sales Role in Fixed Income Securities Market A brief background of the mar- mation asymmetry and it is very ket important to be well aware and well connected. By performing market The market for fixed-income secu- information dissemination, brokers rities issued by Indian companies perform a service for their clients in is limited and illiquid. The liquidity hope of getting business. They per- falls exponentially below the high- form price discovery for each secu- est investment grades. Hence the rity and negotiate an agreement to most active sellers of these securi- pocket a commission. Through their ties are large Indian corporates intimate knowledge of client prefer- with good credit ratings. The larg- ences and history, they perform est and active buyers are mutual number of additional value added funds, insurance companies, gov- services like connecting preferred ernment agencies like LIC, IFCI, sellers to issuers, providing kick- IDBI, UTI, EXIM, etc. Smaller buy- backs on older deals, doling out fa- ers include PE firms, specialized vors, disseminating market informa- banks, etc. The liquidity in this tion to clients, etc. market also depends on the issuer Sales jobs and financial and the sector of the issuer. For Personal relations – This is an im- wizardry jobs conjure up example, debentures issued by portant differentiate which helps very different images in our manufacturing companies with clinch deals. Trust by your clients mind. However there is a assets as collateral are preferred in your evaluation of the market will confluence where one needs and need to pay lesser interest get you business. This is developed to use skills needed by both than those by IT services compa- by knowing your clients well and these job roles when you nies. being able to read what they do not work as salesperson for say. For example, there can be very fixed income securities. The deals are arranged by brokers different meanings when person A What roles and challenges like Merrill Lynch, Deutsche Bank, says that „It looks difficult to do this does the nascent Indian ICICI, etc. in the OTC market. deal‟ than when person B says it. If market provide? And how They are in touch with both the person A was a Japanese, it would do you successfully establish buyers and issuers of such securi- mean a refusal to do the deal while yourself as a good ties throughout the year and work if person B was American, it would salesperson? The author shares his experiences and to service individual client needs. mean an interest in negotiating fur- learning acquired while However since a number of bro- ther. Knowing your client is how working as an analyst with kers are active, there is significant this difference can be judged. Merrill Lynch this summer. competition in this arena. Usually, the only criteria used for choosing Personalized service – By under- between competing brokers is the standing the needs of the issuer and price they negotiate for their cli- customer a priori, brokers can sig- ents. The quickest broker to pro- nal a personal interest in the busi- vide an acceptable price wins the ness of the clients. For example, deal. Clearly, the way to win as a brokers track when a large commer- broker is via superior sales strate- cial paper (CP) issue bought by cli- gies. ent XYZ from issuer ABC is about to expire. As a result, they can proac- So how do you differentiate? tively ask ABC if they would like to again raise money by issuing a Information asymmetry – The sales fresh CP two weeks before the ma- manager for Nirma uses the power turity. Simultaneously they can of his brand to sell his product track what XYZ intends to do with while a Big Bazaar uses the vol- the inflow of money at maturity and ume of sales as a tool to offer lower if they can fix up a deal with an- prices and entice buyers. Here, other issuer. They can perform su- information is the salesperson‟s perior price discovery, work faster to biggest sales tool. Being an OTC sell securities and clinch deals with- market, there is significant infor- out too many competitors even T HE LOOK ING GLASS
  • 33. P AGE 33 coming to know of the deal. Also, by knowing the urgency of the situation and more information than competing broker, one can get a better deal covenants, spread positive reviews of the clients and enhance or tarnish their image. Employing these three strategies can consistently get you deals and clients in this market and help you become a successful securities salesperson. Siddharth Chaudhari is a 2nd year PGP student at IIM Ahmedabad. He holds a Bachelors degree in Electrical Engineering from IIT, Bombay and can be reached at QUIZ ANYONE?? 1. Geophysical Services Incorporated (GSI) a pioneering provider of seismic exploration services to the petroleum industry during and after World war II, made a foray into electronics and designed products for the US army and navy. How is the company today better known as? 2. Karl Elsener, the founder, started this company to create work in the sparsely industrialized central Switzerland. In 1897 the product was created and legally registered in the small village of Ibach. Since that time it has become well -known in more than 100 countries for precision, quality, functionality and versatility. Name the product and com- pany. 3. Living in the crowded streets of Old Delhi, Davinder Kumar Jain, understood the potential of the pen manufacturing way back in the early 1960s. At the age of just 19, DK started producing fountain pens, a writing instrument that deeply fascinated him, thus laying the foundation of the largest manufacturer of writing instruments in India. Iden- tify the company/brand. 4. Originally called New Lord & Company, this company was born as a small tailoring shop in the year 1947. A couple of years later, it was bought over by Mr Arjan Daswani. Under the aegis of Daswani, the company transformed it- self into a mega shirt store. Today, it’s one of the established names in the Indian fashion industry and claims for bringing international acclaim to Indian tailor craftsmanship. Which brand/company is being talked about? 5. The enterprise could be considered to have started in 1901 when William aged 21,drew up plans for a small engine that displaced 7.07 cubic inches and had four-inch flywheels. The engine was designed for use in a regular pedal- bicycle frame. Over the next two years William and his friend Arthur labored on their little bicycle. What company was founded by William and Arthur? 6. This company, originally known as Standard Oil of California, or Socal, and was formed amid the antitrust breakup of Standard Oil in 1911. It was one of the "Seven Sisters" that dominated the world oil industry during the early 20th century. It is now one of the world’s six ‘supermajor’ oil companies and the largest producer of geothermal energy in the world. 7. The way in which Frank Robinson wrote the name of a product was so elegant and original, it was decided to use his handwriting for the logo of the product. Name the product that even today uses Robinson’s script as its trade- mark. 8. After serving in the subscription department and as a copywriter for Esquire, he left in January 1952 after being denied a $5 raise. Took his biggest gamble in 1953 by raising $8,000 to launch his business venture. Made an ap- pearance on a popular TV series. Has a species of rabbit named after him and is known as one of the world’s best- known womanizers. 9. Born on June 7, 1975, she did her schooling from Bombay Scottish School and later on joined Mithibai College. She was not interested in academics and ventured into television at the age of 19. Soon changed the face of Indian tele- vision industry and completely dominated it. Awarded with Ernst & Young (E&Y) Startup Entrepreneur Of The Year award in 2001. Answers 1. Texas Instruments; 2. Victorinox (Original Swiss Knife); 3. Luxar Pens; 4. Chirag Din; 5. Harley Davidson Motor Cycles; 6. Chevron; 7. Coca Cola; 8. Hugh Hefner; 9. Ekta Kapoor T HE LOOK ING GLASS
  • 34. Valuation of TV Advertising P AGE 34 The slowdown in the Indian econ- omy has meant that more and more firms are looking to control expendi- tures seen as unnecessary and add- TRPs= ing little value. For most firms, it‟s TRPs= 47.5% or 47.5 TRPs the promotional and advertising budgets that get hit first. In such a This is can be construed in two scenario, managers need to justify ways: their advertising spends and meet 1. 47.5% of the target audience required advertising ROI targets. watched the program for its en- This calls for an accurate way of tire duration (i.e.10 mins). measuring advertising effectiveness. Effectiveness is essentially measured 2. The entire target audience through the advertising medium‟s watched the program for 47.5% reach. For TV, advertisers want their of the program duration. The author stresses the ad to be seen and hence the task is importance of advertising to find the cost of reaching an eye- effectiveness in the face ball. The primary indicator used in The first meaning suggests that TRPs of tighter promotional TV advertising deals is „Cost per rat- give the percentage of the target au- and advertising budgets. ing point‟ or CPRP. Another parame- dience that has been reached by a Advertising effectiveness ter, „Cost per thousand impressions‟ program and hence also reached by of a medium is primarily or CPT may also be used. the ads shown in the program slot. measured through its reach, that is, how many The following terms will be useful to of the company’s target understand the valuation of ad Gross rating points (GRPs) customers the medium deals. GRPs represent the sum of all TRPs reaches, and for how achieved in a period. Hence, GRPs long. A system of metrics are not program-specific and can be is discussed, one that Universe calculated for a diverse set of TV pro- focuses on calculating the The Total/Actual number of grams. cost of reaching one people in a defined target audience. intended eyeball. The article explains how ad TV rating points (TRPs) Cost per rating point (CPRP) deals between TV channels and advertisers These are measured by audience CPRP represents how much it would are valued based on these measurement agencies like Televi- cost to deliver one target rating metrics. The author then sion Audience Measurement (TAM) point, or 1% of target audience, i.e. a compares CPRP and CPT and these help to express the viewer- TRP of 1%. That is, CPRP represents and explains how using ship for programming on television the price charged by a TV channel one method over another in numerical terms. from an advertiser to deliver a TRP of may be advantageous 1%. In the Indian TV industry, this based on whether one is a TRPs take into account two factors: CPRP is for a 10 second slot during a marketer or a TV channel. 1. Reach- The number of viewers for program. a particular program 2. Time Spent- The amount of time Cost per thousand impressions spent by these viewers watching (CPT) the program It is the cost of delivering a thousand Example: Consider the universe to be impressions. For example, a viewer made up of 4 viewers A, B, C and D. watching a 10-second slot in which The following shows the viewership an ad is shown would be one impres- details for a TV program. sion. Person Time Spent Minutes Available A 6 10 B 0 10 C 8 10 D 5 10 T HE LOOK ING GLASS
  • 35. P AGE 35 Marketing Gyan!! Valuation of an ad deal A television channel has an estimate of the ad  Canned beer was first introduced in 1933, inventory that it wants to sell in a year (or in New Jersey. more). This ad inventory refers to the total ad time it can sell, say 10000 hours in a year. The  The types of horses that have been utilized channel sells a portion of this inventory to ad- to name Ford automobile products are vertisers in long-term deals of 1 year (3 year Bronco, Mustang, Pinto, and Maverick. deals are less common). The channel promises the advertiser a specific number of GRPs that it  The first supermarket was located on Long will deliver during that one year and the adver- Island, Jamaica Station, New York. The King tiser is charged a price for these GRPs. Kullen Store was a product of the Great De- pression era and supermarkets have evolved Value of the deal= CPRP X GRPs X total tremendously. The products were set out on number of slots pine boards resting on boxes. Each of these slots is of 10 seconds. The issues that form the focus of the negotiations are the  McDonald's first restaurant was located in number of GRPs and the CPRP. If the slots sold Des Plaines, Illinois. It opened on April 15, by the TV channel fail to provide the promised 1955. GRPs, the TV channel compensates by giving the advertiser bonus time, i.e. ad slots free of  Drive-through service was initiated in cost. If instead, more than the promised GRPs McDonald's stores in 1975. Today, it is fea- are delivered, the advertiser would have to pay tured at almost every unit that also has some extra for the extra GRPs. These details are parking. thrashed out in intense negotiations between channels and advertisers.  The first television commercial appeared on Calculating CPT July 6, 1941. It was a commercial for Bulova watches. The cost per thousand impressions is an indi- cator of the absolute reach of the TV medium. It  The Romans had a goddess, Juno Moneta, is calculated as follows: who was the goddess of Warning. She CPT= total value of the deal/ number of peo- warned the Romans of dangers. The Romans ple reached (in thousands) were so appreciative that they set up a mint in her temple. The name Moneta in the old Since 1 TRP means that 1% of the target audi- French language was "moneie" which even- ence is reached, the total number of people tually became our word for money. reached can be found out using the universe size.  McDonald brothers' names are Maurice and Number of people reached= TRPs X universe Richard. They owned a drive-in restaurant size in San Bernardino, California. What’s the right metric- CPRP or CPT?  Nike was the ancient Greek goddess of vic- It depends on whose point of view we consider. tory. Most deals today are done using CPRP as the measurement metric. TV channels claim that  Dilated pupils are a good indicator of excite- this system of valuation is unfair since CPRP is ment. When training salespeople they can based on rating points, which indicate only per- be taught to use indicators of product inter- centages of the target audience reached. Con- est by looking at their customers pupils. sidering that the target audience watching these channels is increasing in absolute terms,  B.M.W stands for "Bayerische Motor Werke” more people have to be reached by the TV chan- nels to get the same TRPs. TV channels are thus demanding a shift to using CPT in negoti-  7 Up was invented by C.L. Grigg and was ating ad deals with advertisers. named as „7 Up‟ since it contains '7 natural flavors' and carbonation. Amogh Bhole is a 2nd year PGP student at IIM Ahmedabad. He holds a Bachelors degree in Electronics Engineering from VJTI, Bom- bay and can be reached at T HE LOOK ING GLASS
  • 36. Ogilvy & Mather Trivia P AGE 36 1. The Asian Paints 3. Pulse polio The Asian Paints Exterior Emul- The campaign against Polio was sion campaign sought to upgrade designed to create a strong feeling cement paint users, in a tradition- of responsibility amongst parents ally low and shake them out of their inertia involve- so as to ensure maximum turnout ment cate- on the National Immunization gory. Days. It used the angry man per- O&M lev- sona of Amitabh Bachchan, the eraged the screen legend of Indian cinema to brand's admonish parents for their irre- interior sponsible behaviour and apparent equity and its association with disregard for the safety and happi- beauty benefits to position its ex- ness of their children. teriors portfolio as “Time Proof Beauty” paint The brand grew by 43% and the sign off "Badhiya Hai!" has become part of popular consumer lexicon. 2. Center shock Before the launch of Center As a result of the campaign, 19 Shock, the confectionery market districts reported over 50% booth in India was on the road to de- coverage after February round; 2.8 cline. Within the confectionery million children were immunized in market , the chewing gum seg- January and additional 6 million in ment was showing a 23 % decline. February, as compared to Novem- (AC Niel- ber 2002 round. Over 90% respon- sen Re- dents reported that the Amitabh port). Un- spots were a major influence in der these motivating them to come to the circum- booth. stances Perfetti India Ltd. 4. Sprite decided to launch a product that The clear lime drink Sprite stands would "shake up the market". for honesty, confidence and sim- plicity. They needed to connect with the teen and make the brand The most startling facet of the aspirational. This was done by po- product, Center Shock, is its sour sitioning Sprite as the No Pretence taste…in fact, sour beyond excep- drink - clear, honest and straight tional. So much so that it shakes up - what you saw was what you you up. The creative challenge was got. The tongue-in-cheek campaign not just to communicate this in a helped the brand grow by 62% dur- manner that establishes this be- ing the campaign period. yond doubt for the young audience, but also to make it memorable. And above all, shake them up. The central thought of the campaign, "shakes you up", was taken for- ward in on-ground promotions and media innovations. As a result of this campaign, Center Shock went from being a "no brand" to the No.1 brand in the chewing gum category T HE LOOK ING GLASS
  • 37. P AGE 37 Is Recession the time to tighten Ad Budget? “Your outgo must be less than your accounting at Ohio State University income, and so if income drops, verifies that advertising expenditures you must immediately take steps to during recession contribute to in- reduce the outgo”, this small lesson creased earnings by firms for up to drummed into our heads as chil- three years. The greatest impact oc- dren sticks to us forever, and is curs in the year immediately follow- carried forward into our profes- ing the recession and this impact is sional life as well. Interestingly, the more pronounced for firms offering same lesson makes us susceptible consumer goods or industrial prod- during good times, when sales are ucts, as opposed to firms offering on an upswing, to splurge and to services. This entire philosophy try things that might not seem es- works on the basic premise that ad- sential at other times. The same vertisement is considered as a long people resort to tightening their term investment rather than as a belts, trimming the excessive flab short term expense. The ongoing recession and and cutting advertisement budgets, the tightening of ad the minute sales dip a bit. budgets by most marketing Should this be the norm for Ad firms in India and abroad budget allocation? „No,‟ says former have raised a crucial chief marketer of Coca Cola, Mr question about what the stance should be during Sergio Zyman. He exemplifies the these trying times for same with one of the marketing businesses. This article metaphors: “Marketing money discusses the benefits of (Advertisement money) is like fuel having higher budgets for in a car. You take the fuel out of advertisement during the tank, the car stops, and with it recessionary pressures. It so does the brand”. So does that exemplifies its stance by endorse the view that marketing taking into account expenditure should be held con- customer perceptions stant, if not increased during reces- about companies during sionary period? Mr Zyman again recession and how big wigs comes to the rescue. He juggles the in the past have pulled same words, but this time taking a themselves up into a more co mpletel y di ffe ren t stance : strengthened position post “Marketing is like fuel. If the engine Advertising during recession pro- downturn. The article ends isn‟t working- as Coca Cola discov- vides a unique window of opportu- with a word of caution ered with New Coke in the eighties- nity for investment in building stating that competitiveness a full tank of marketing fuel is use- strong brand equity, solidifying the and relative market less”. customer base, gaining new custom- position should be the ers and more importantly making most appropriate way to inroads into the competitor‟s terri- judge the situation before With such diverse views, it becomes tory. Most consumers perceive the allocating ad budgets. quite essential to dip our fingers lack of advertising during recession into empirical data. Empirical re- to be synonymous with the business search results show that the better struggling. This creates a negative course of action in a downturn is to perception in the minds of the cus- sustain marketing communication tomers who become more cautious or actually increase it. You get about the present customer value more bang for your buck when eve- proposition offered by the firm and ryone else is laying low, and you more suspicious about the quality of come out of the recession faster goods and services committed to with a healthier bottom line. them. Likewise, a vast majority per- ceives businesses that continue to Aggressive companies increased advertise during recession as being market share on an average of 1.5 competitive or committed towards points during recessions, while doing business. budget-cutters gained only 0.2 points. Roger Graham, professor of T HE LOOK ING GLASS
  • 38. P AGE 38 Therefore it becomes critical to advertise give a competitive advantage to a company, during recession, to maintain long-term there are ample examples, when this did positive consumer perception of the brand. not work. Popular brands like Barclaycard, Advertising not only assures consumers of Renault Clio and Nescafe Gold Blend ran the business reliability in a soft economy, ad campaigns that generated acres of extra but it can influence where and what they press coverage during 1981-82 recessions, buy. In recessionary times, price loyalty is but they all lost substantial market shares greater than brand loyalty, so instead of later on. The point to be noted here is the reducing ad budgets it would be advisable quality of the ads featured, and the relative for companies to increase their spends on weaknesses of competing brands are impor- sales promotions and discounts. tant as well. These two criteria should be delved into in detail before increasing ad expenditure during recession. The top management has the unpleasant duty of reporting disappointing results dur- ing recession; then they offer encourage- The truth is that advertising effects cannot ment by pointing out that all the cost cut- be isolated from other factors. While market ting measures have been implemented, as leaders who may be able to garner re- if the stakeholders ascertained that they sources during recessionary trends to fight wanted all costs to be cut to the bone and price wars and sales promotions with com- get the ship in order. This leads to the no- petitors, may use the tactics of increasing tion where advertisements are considered a ad budgets, companies facing tough form of defensive insurance, and not as choices should not be bullied into believing profit generators. Top management sets the that advertising is a panacea. For them the whole marketing budget as a percentage of engine might be too worn out to respond to expected revenue, and when expected reve- the fuel. nue drops, they see every reason to cut But then, the crux of the argument is that marketing expenditures. But this exposes advertising definitely has positives attached the illogic of setting marketing expenditures to it. Using it you might not be able to get based on expected revenue. The marketing quite where you intend to be, but at least budget is the cause, not the effect. Setting a you will get to some distance along the higher marketing budget will get higher ex- right path! pected revenue for a company during bad times. Contrary to this opinion a recent survey by R3 which manages 100 of Asia‟s Saikat Mondal is a 2nd year student of IIM Lucknow, spe- top 500 brands points out that one in every cializing in Marketing and Operations. He holds a Bachelors four Indian companies have been forced to degree in Electronics and Telecommunication Engineering from scale down their marketing and advertise- Jadavpur University. Prior to joining IIM Lucknow he has ment spending because of the ongoing eco- worked with Cognizant Technology Solutions for around four nomic crisis. But the hard lesson was years. He can be reached at learnt my most US companies during the 1981-82 recession. In an effort to come out of the red, during the ongoing slowdown advertisers and com- panies are turning to desperate measures to promote their products and increase consumer spending. Some advertisements like Pepsi‟s Saturday Night Live have ini- tially confused the consumers in an effort to break the clutter. Researchers are of the view that standing out in advertisements is imperative during recession even if at the expense of confounding customers. The zoo zoo ad of Vodafone might be along these same lines. Though it might seem that high spending on advertisements during recession might T HE LOOK ING GLASS
  • 39. P AGE 39 Low Cost Customer Acquisition Strategies for E-businesses Search engines are a favorite for search engines Flipkart is cautious most of the startups. Getting listed about protecting their servers from on the first page of a relevant key- the noise users. word search (aka Search Engine Op- timization or SEO) is unequivocally the top priority. It is important for Social Media has made a consider- Redbus to be visible for the search able contribution for the increase in string “Bangalore to Hyderabad” and internet usage, especially for the Inkfruit would like to sell theme t- young users in India. It is an excel- shirts to the gaming buff searching lent medium for businesses that are for information on „Age of Empires‟. targeting the youth. Prasanth Mo- Inkfruit banks on community inter- hanachandran, Executive Director - actions and online thematic contests Digital Services at Ogilvy, cites the The first myth of online to keep the buzz around, which example of the 40,000 strong Zoozoo marketing is that it is cheap. From what we have learnt helps it to be in the first page of community of Facebook to under- from our exploratory research search. Constant updates and add- score the importance of Social Media. Indian online businesses ing linkage from other sites (creating Noel Manoj of be- typically spend around Rs 40 affiliates) helps to lieves that Social Media will have a to Rs 400 per customer keep up its ranking. BankBazaar‟s major influence in Internet Market- acquired. Advertising online efforts paid returns when it moved ing and purchasing tendencies. Pras- however is better in terms of from the 20th page of search to the anth from Ogilvy cautions about the the ability to send the message 1st page in less than 6 months. demographics of people using social to a target segment and get a BankBazaar promotes its site media sites. More than 40% of the faster response. The second through paid listings (aka Search users of Facebook and Twitter are myth is that what has worked Engine Marketing or SEM) as well. less than 24 years old and 50% of in the US will work in India. Many startups take the paid route to the users have an income below 2 We discovered that none of begin with as it is easy and the cost lakhs per annum (Vizisense). So, this the strategies that our per click for search engines is very medium might not be suitable for respondents used worked the low. Though search engines route a selling financial products. “Social same way. There is no strategy lot of traffic to websites, there is a Media Optimization is inexpensive mix that fits all. While some catch as explained by Shiva Kumar, and builds loyal customers. However, strategies are generic and can VP Products & Technology of Flip- the volumes have been far from im- be used by all with little “Getting traffic is impor- pressive so far” opines Akhil Chug of tweaking, others have to be tant but what‟s more important is tailored and customized to suit getting the right customers to your Social Bookmarking is a method for the product and the site, otherwise these noise users eat Internet users to store, organize, consumers. We talked to 10 up your bandwidth” says he. With search, and manage bookmarks of Indian startup e-businesses that are making news lately close to 90% of traffic coming from web pages on the Internet. and gathered their opinions on effective promotion strategies. Website Business First Second In this article we explore what Bus-Ticketing SEO Offline promotion strategies have Inkfruit Designer Offline SEO worked for these companies T-Shirts and how they managed to use BankBazaar Loan Comparison SEO SMO them effectively. StudyPlaces Education Consult- SEM Email ants Careers-India Job Info SEO SMO FlipKart Bookstore SEO SMO Lounge Viral SEO & Lifestyle Home-Designing Interior Designing SEO SMO ISchnell Education Software Offline SEO EasySquareFeet Real Estate SEO Online Commu- nity Based Table 1: Ten E-businesses choose the strategies of their choice T HE LOOK ING GLASS
  • 40. P AGE 40 With over 100 million unique URLs book- that some websites run through email data- marked and 3 million registered users, sites bases available. like Delicious are routing substantial number chose television over inter- net to advertise its repositioning strategy. While the wisdom behind ignoring the offline marketing is debatable; offline advertising is indispensable for many sites. “Many low cost untraditional options are now available for offline marketing. Credit card bills, electricity bills, bus tickets are being used to reach the customer. It is important to define your target customers and target only those who match your target spending and age levels” says Prashanth, Ogilvy. struck a win- win deal when it started advertising on credit card bills. Advertising space is also available on buses, auto rickshaws, subway stations etc. For a company like Inkfruit, which gets most of its revenues through offline sales, ad- vertising offline is extremely important. 45% of traffic to Inkfruit is direct (users type the URL of the website) and majority of this is contrib- uted by offline marketing. The offline options include promoting in malls or shopping com- plexes where Inkfruit products are sold. If the Figure 1: Contest of Inkfruit featured in a blog (Jain) segmentation is geographical in nature one can take advantage of the Direct Post facility of users to different websites. However, the of India Post that allows businesses to send traffic from these sites to the Indian websites mails to a certain pin code location at Rs 1.50 is negligible. Manu Avinash of Careers- says “The social bookmarking sites have huge potential and of late we are getting some traffic from these sites”. Amusingly, what used to be the bread and butter of an internet marketer a few years ago comes number three on our list. Email has to be used very cautiously. Opt-in lists (users who have accepted to receive promotional mails) can be either created by self or in the initial days bought from an agency. “More than two emails per month may be consid- ered as spam by users”, warns Akhil Chug. It is important to communicate constantly with the customer and at the same time not be considered as a spammer. Apart from fre- quency, the timing of emails is extremely im- portant. Mayank, Marketing Head of RedBus, Figure 2 advertised at the back of an auto says, “Sending a mail about holiday ticket (information madness) reservation two days before the holidays be- gin is useless but sending it two weeks before per article. will bring in good traffic with very high con- Public Relations (PR) is a part of offline mar- version rate”. Depending on the type of the keting strategy and is a combined responsibil- product affiliates‟ databases (like Zapak, ity of the company and the PR agency se- Cricketnext etc) can be used to send relevant lected. According to Kashyap, Cofounder of emails to their user base like what Inkfruit is, “If your product is innovative currently doing. The click rate or open rate of and can create interest for the reader, creating mails sent through such tie-ups are at least a positive PR is not difficult”. 10 times better than random mail campaigns T HE LOOK ING GLASS
  • 41. P AGE 41 The extent that the media covers you also of importance” says Noel Manoj of BankBa- depends on who you have for backing. zaar. “Selecting the right seed fund to promote and finance your company is a vital task. While all the strategies discussed so far are Right people can get you good PR and give facilitators for directing the customer to the you invaluable mentorship. That‟s what site, at the heart of the acquisition process TiE (The Indus Entrepreneurs) did for Red- is the product. Conversion of a casual visit Bus” according to Prashanth from Ogilvy. to a desired action (sale, registration, Sasikanth Chemalamudi, founder of Hab- spending quality time etc) happens only if says “Having a very strong and close the product that you offer is likeable and knit alumni network (of his Alma matter creates value to the customer. Customer BITS Pilani) has helped Habits to increase loyalty on the other hand depends largely its awareness”. Technology intensive B2C on the service component. Nothing drives or B2B products require lot of offline mar- your customer off to the competitors like keting in India, whereas in the US, the us- bad service does. Bad service coupled with ers being aware of such products, online good advertising may help build the cate- marketing works effectively. For example, gory and help the competitor prosper at ISchnell is using only offline marketing to your advertising expense. sell its product in India but for US & China they are relying on online marketing. Pradeep P N is a 2nd year student of IIM Lucknow, spe- cializing in Marketing and Finance. He holds a Bachelors Mobile marketing, which is in a nascent degree in Computer Science from BITS Pilani. Prior to joining stage now, can drive the future of advertis- IIM Lucknow he has worked with Juniper Networks India for ing. BSNL has already started wooing cus- around two years. He can be reached at tomers to opt in for promotional messages on their mobile in return for free call time. With the advent of Blyk, the UK based Sarat Chand is a 2nd year student of IIM Lucknow, spe- company which has pioneered the model, cializing in Marketing and Finance. He holds a Bachelors in India it only means more advertising degree in Computer Science & Engineering from Osmania over the phone. “Mobile is a major channel University. Prior to joining IIM Lucknow he has worked with in India as more users go online on a mo- Cognizant Technology Solutions & Satyam Computer Services bile than a computer for the first time. Ltd. for around six years. He can be reached at Hence mobile applications will add of a lot Identify the Ad!! Identify the occasion?? Check Page 47 for answers T HE LOOK ING GLASS
  • 42. P AGE 42 State Of The Market- A Comparative Study Media mogul, Rupert Murdoch was Navachetna Microfin Services Ltd re- perhaps paying tribute to God‟s Own ceived Rs 1.5 crore from a few high Country when he trooped into the net worth individuals and IT profes- state capital to finalise the takeover sionals. A day later, Tiruchirappalli- of Matrubhoomi, a local Malayali based Grama Vidiyal Micro Finance daily. More noteworthy was the fact Ltd (GVMFL) said it raised Rs 20.4 that this was the first time the bil- crore from MicroVest, Unitus Equity lionaire had made a foray into re- Fund and venture capitalist Vinod gional daily. Something has Khosla. This is the second round for changed, something had metamor- Grama, which had raised Rs 14.7 phosed – Brand India from the shy crore in 2008. These are not isolated nonchalance of the 50s to the street- events which can be ignored. State smart self-advertiser of the new mil- Branding has well and truly arrived lennium the journey has well and and the investor today has been daz- truly come a full circle. The various zled with fresher and innovative mar- states of the country have ramped keting blitz from the various states. up their efforts to position them- Gone are the days when 26 January selves as brands, as a full scale war used to be the only day for displaying culminates to catch the eye of inves- the resplendent riches of a region. tors foreign and home grown. Even states like West Bengal, which In this paper, the There still remain a multitude of author attempts to views on when India opened its identify the doors to Foreign Investors but there characteristics of the is little to argue that it was at the business climate in turn of the millennium in 2001 that India that can help branding of states well and truly explain the different emerged. It would have been un- performance of thinkable some 15 years ago that 14 individual states in terms of investment of the states of India now have brand and growth. The paper ambassadors! summarises the efforts made by the various THRISSUR- MAKING A MARK states in attracting has been traditionally averse to big investment. The author An idea still exists that the race to ticket investment, have joined the fast explores the sell themselves remain restricted to lane to woo investors. Appointing investment climate in the proverbial industrial Shangri la cricket star and hometown hero Sau- several typologies of belt of Gujarat, Maharashtra and a rav Ganguly as a brand ambassador Indian states and few others like Karnataka and the identify the key to the state was just one of the many national Capital Region. The arrow steps taken to attract the eye of the features of the various could not be more off the mark as investors. Jyoti Basu the former chief parameters that influence investors in even erstwhile obscure towns are minister of the state converted to India. The analysis rising to prominence in the mind- capitalism late on an investment pro- shows that the states map of potential investors riding motion trip around Europe and Amer- have significantly piggy back on a dazzling marketing ica, flying on Concorde, staying at ramped up the campaign. Thrissur in Kerala, Ti- New York's Waldorf Astoria hotel and marketing initiatives to ruchirappalli in Tamil Nadu and dining with inveterate capitalists at attract investment. Haveri in Karnataka are unlikely such firms as Price Waterhouse, Rolls towns investors will be herded into. - Royce and Merrill Lynch. But they recently entered India's venture capital map, thanks to the Mr Basu was just one of a flock of In- impressive and aggressive campaign- dian state chiefs who were realizing ing of these states. On June 22, the need of the hour and stepping up Thrissur-based ESAF Microfinance to be feted as representatives of their and Investments (EMFIL) said it country's open-door policy on foreign landed Rs 12 crore from Dia Vikas investment. In dark clouds of eco- Capital, an arm of Opportunity In- nomic slowdown, silver lining emerged ternational Australia, while Haveri's for Rajasthan as the western desert state attracted highest investment T HE LOOK ING GLASS
  • 43. P AGE 43 plans during October-December 2008-09 by ance, Disaster Management, Best-in-class infra- corporate India, bringing a considerable shift in structure, Energy Output, Reducing Maternal & its ranking order, among the 21 India states Ra- Infant mortality rate. “You are stupid if you are jasthan is turning to be one of the most favour- not investing in Gujarat”, says Ratan Tata. Modi able investment destinations, carving top posi- was voted the best CM in the country for three tion in the third quarter of the financial year consecutive years by India Today ORG-MARG 2008-09 (October December), witnessing a major Survey. Gujarat has also been voted Best State by jump from 13th position in the same period of Rajiv Gandhi Foundation. 100+ billion US Dollars the financial year 2007-08, according to a paper MOU‟s signed in 2007 Vibrant Gujarat Investors brought out by ASSOCHAM. Summit. As India Inc expressed investment plans in Ra- These are not mere facts but simply highlight the jasthan, the state registered a major jump by advantage and competitive edge Gujarat had over 245.84 per cent during October-December 2008- its rivals being a “first mover”. The idea has lived 09 as compared to the corresponding period of since Gujarat with all states ready to shell out the last year (2007-08). The next big investment millions even at times of global economic slow- destinations also witnessed major shift as sec- down to gain a facelift which would showcase ond place was occupied by Madhya Pradesh as themselves to the world. Adman Prahlad Kakkar compared to the sixth place last year. Orissa acknowledges the fact as he underlines the fact maintained its place at the top slot carving third that quite a few advertising agencies and Brand position. The secret of the success was not to be management companies have been making big found in JK Rowling‟s quiver but in simple mar- bucks owing to this “branding-boom” in India. keting logic, innovation is the key to survival. “Branding of states and nurturing and positioning Brand positioning has been important as every of the brands is here to stay and is more than a state has hired the best corporate houses to sell passing fad,” says business baron Vijay Mallya their state to the world as an investor‟s dream. who himself has been an active player in the re- The state of Gujarat was perhaps the first to hit branding of Karnataka as a state which was more the ground running as they launched than India‟s silicon valley. www.supportgujarat .com a website featuring a The stage has been set, the world is now watching plethora of advertisements and support data ………………………. And the states of India are highlighting the advantages of investing in Guja- ready to stand up and be “AD”ed rat. Sanglap Banerjee is a first year PGDM student in IIM Calcutta,he Over 60 Accolades and Awards for Gujarat under holds a Btech degree in Electronics and Communication Engineering from Narender Modi from International and National National Institute of Technology Bhopal, and can be reached at Organizations for Best Investment Environment to Best Sanitation, for Innovations in Govern- Mega Investment Proposed ( Source: IPICOL, Government of Orissa ) Proposed Pro- Company Location Cost(Rs Million) ject Consolidated Electric Power Power Jharsuguda 160000 Larsen & Toubro Ltd Steel Gopalpur 70000 TATA Steel Steel Gopalpur 65000 Ganapati Exports Ltd Steel Duburi 60000 Hindalco Industries Ltd Aluminium Kalahandi 50000 Indian Oil Company Oil Refinery Paradeep 50000 Nippon Oil Company Oil Refinery Paradeep 50000 MESCO Steel Duburi 42690 Oswal Agro Ltd Fertilizer Paradeep 42200 Utkal Alumina Aluminium Rayagada 30000 Ashok Leyland Oil Refinery Haridaspur 24000 Consolidated Electric Power Power Ib Valley 20750 Neeleachal IspatNigam Limited Steel Duburi 15250 Indian Seamless And Alloys Limited Steel Duburi 13770 Orind Steels Ltd Cold Rolled Steel Duburi 11500 T HE LOOK ING GLASS
  • 44. Does Green Marketing Sell? P AGE 44 When Philips came up with CFL mental impact of products they buy. (Compact Fluorescent Lights) Of these 50% of the respondents are “Marathon” in 2000, the product was willing to pay premium for eco- immediately a hit even though it was friendly goods. Organizations in de- charged at a price of $20 against veloped countries have widely $0.75 for regular incandescent adopted Green Marketing practices, bulbs. While many media reports while consumer trends show that accredited the eco-friendliness of this developing nations such as India and product (“Green Marketing”) as the Brazil are not far behind. A study by reason behind its success, we believe Jain and Kaur (2004) has shown that the benefits offered by the prod- that though consumers are not fully uct in terms of saving power in the aware of environmental issues, they long run, capability of lasting for 5 are willing to prefer and pay more for Dwindling natural resources years and the trust in the brand products that are certified to be envi- and global warming have Phillips were the reasons for its suc- ronmentally friendly. So how have led many companies to cess. The article attempts to explain organizations exploited this wave of innovate products that are consumer‟s behavior in terms of pref- environmental concern amongst con- eco-friendly. Marketers erence and willingness to pay more sumers? have mixed results about for green products. the success of such green products. We referred to Going Green several books, online Often green strategies are de- articles and research papers signed not only for environmental to understand the mistakes made by marketers and to benefits but also for the benefit of understand the consumer’s the organization. We believe that attitude towards green strategies which benefit the environ- products. We concluded ment as well as the organization may that eco-friendliness has in fact help the cause, since they varying influence on the would be more sustainable when consumer’s preference for compared to pure philanthropic ini- green products. While eco- tiatives, otherwise termed as Corpo- friendliness can influence rate Social Responsibility (CSR). The consumer’s purchase benefits of environmentally friendly decision for a low During our research, we strategies for the organization can be involvement product, it won’t be sufficient to found that consumers behave differ- broadly classified as: persuade consumer to buy a ently for the products that require  Increasing profitability by com- high involvement product. different levels of involvement. Before we explain this further, we must in- manding a higher price for envi- Understanding consumer ronmentally friendly products behavior towards different troduce the term “Green Marketing”. categories of green products American Marketing Association de-  Differentiating products based on can help marketers innovate fines Green Marketing as the mar- environmentally-friendly attrib- the right products and keting of products that are presumed utes develop effective to be environmentally safe. Green communication strategies. Marketing incorporates a broad  Increasing market share by de- range of activities including product veloping preference for environ- modification, changes to the produc- ment friendly products through tion process, packaging changes as advertising well as modifying advertising. Other  Building corporate brand image terms for green marketing are eco- by associating with environment logical marketing and environmental friendly practices and products marketing. Marketers have had mixed results while implementing eco-friendly Studies in the US (Cramer, strategies. While there have been 1991) show that over 90% Americans huge successes such as the Toyota are concerned about the environ- Prius and Philps CFL, there have also been innumerable failures that T HE LOOK ING GLASS
  • 45. P AGE 45 have disappeared into the oblivion. tural and personality variables. The most use- ful classification in the Indian context was found to be based on three parameters: con- Green Marketing Myopia cern for the environment, awareness of envi- ronmental issues and environmentally- Many marketers get obsessed to de- friendly behavior (Jain and Kaur, 2004). The velop number of product features rather than key findings of this study show that though meeting customer needs, the condition Indians lack sufficient knowledge about envi- termed as “Marketing Myopia” by Theodere ronmental issues, there is a generally high Levitt(1960). Jacquelyn and Edwin(2006) concern for the environment and most sur- build on this further to explain “Green Mar- prisingly, Indian consumers score very high keting Myopia”. They suggest that Green Mar- on environmentally friendly behavior, espe- keting must focus on two objectives: improved cially with respect to conservation of re- environmental quality and customer satisfac- sources (saving water, oil, etc.) and purchase tion. Misjudging or overemphasizing one at decisions (buying greener products). the cost of the other can lead to Green Mar- keting Myopia. Such myopia can occur when products fail to provide credible environ- The most important benefit that indi- mental benefits. Introduced in 1989, pack- viduals seek from environmentally responsi- ages for Mobil's Hefty photodegradable trash ble behavior is the desire to act in an environ- bags prominently displayed the term mentally responsible manner. The attitudes "degradable" with the explanation that a spe- that drive this need, resulting in purchase cial ingredient promoted its decomposition behavior can be broadly classified as cognitive into harmless particles in landfills "activated and emotional. “Environmental conscious- by exposure to the elements" such as sun and ness” corresponds to the cognitive dimension rain. Because most garbage is buried in land- of environmental attitudes, and fills, allowing limited exposure to the ele- “Environmental Concern” refers to the emo- ments, the claim enraged environmentalists. tional dispositions as individual indignation Ultimately, seven state attorneys general sued about the destruction of nature (Hartmann Mobil on charges of deceptive advertising and and Ibanez, 2006). Based on these needs and consumer fraud, and the company withdrew segmentation, we analyze how green market- the product from the market. ing can be effectively used to influence the purchase behavior of consumers for different types of products. To help marketers maximize the effec- tiveness of green marketing strategies, we ex- plain below how consumer behavior theories Products (and services) can be broadly can be utilized. classified as high and low involvement for Understanding the Consumer Behavior of analyzing the consumer purchase behavior. Green Marketing Since the purchase behavior is totally differ- ent for these two types of products, the impli- Though there are a lot of esoteric mod- cations of green marketing can be different for els explaining why or why not does green these two types of products, which we bring marketing work for different products and out in the following sections. consumers, we found that basic consumer behavior theories can be easily applied to ex- plain the effectiveness of green marketing in High Involvement Products different scenarios. Any product that is perceived as ex- pensive, risky or has emotional value at- Before getting into theory, a primary tached to it is considered as high involvement question that arises is how do consumers product. The benefits sought from high in- benefit from purchasing and using environ- volvement products such as TV, cars, etc. are mentally-friendly products? Do all people very different from that of low involvement have the same attitude towards the environ- products such as toothpaste, soap or paper ment? napkins. While customers may purchase a eco-friendly low involvement product for the benefit of environment even if the price is In the field of green marketing, differ- marginally higher, they will not purchase high ent studies have classified consumers based involvement green product for it just being on different demographic, psychographic, cul- eco-friendly. They will weigh attributes such T HE LOOK ING GLASS
  • 46. P AGE 46 as performance, brand, convenience and price Low Involvement Products against the competing products. If the con- Low involvement products are charac- sumer is required to make tradeoff on any of terized as not being economically important, these parameters for environmental benefits, and involving low risk for the consumer. The environmental product almost always loses. purchase decision process for such products Many products that require customers to is thus relatively simple as compared to that make such trade-offs have failed to establish of high involvement products. In contrast with themselves in the marketplace. high involvement products, green marketers can significantly influence the purchase be- havior of consumers for low involvement So now the question is, how to make products through persuasive advertising of green marketing startegies be perceived as environmentally friendly claims regarding high involvement startegies? – In two ways, their brand. first: it helps the companies make favorable image and second it reduces the post pur- chase dissonance. For typical low involvement purchases like paper and detergents, elaborate evalua- tion of benefits of product and comparison As per Fishbein‟s Multiattribute theory with other products is usually not done. In (Ajzen and Fishbein, 1980), consumer‟s atti- the absence of marketing, such products are tude towards a product is the function of con- likely to become commodities, with little dif- sumer‟s belief and the evaluation of the prod- ferentiation between products. To prevent this uct attributes. If a consumer has a preference from happening, billions of ad dollars are for certain attributes and if the product pro- spent by FMCG companies like Unilever and nounces those attributes then there is a high P&G, so that they can increase the involve- probability that consumer will purchase that ment of consumers and create a brand prefer- product. Thus, consumers having higher pref- ence for their products. A study by US re- erence for green products are more likely to searchers (Schuhwerk and Lefkoff-Hagius, purchase such products over others. How- 1995) has shown that advertisements with ever, such customers are less than 2% in environmental appeals have significantly number and the mainstream customer won‟t more impact on consumers who are less in- buy just by that attribute. But if the product volved in environmental issues (as in case of is equal to competing product on all other pa- India) when compared to advertisements with rameters then consumer may prefer the green traditional feature appeals (like financial product. benefits). Once a brand preference is created, it may turn into purchase habits and result in brand loyalty for green products. Secondly, high involvement products have high probability of creating post pur- chase dissonance. It could be because of it In practice however, environmental being expensive than other competing prod- advertisements have often failed to enthuse ucts or because it rates closely with other customers. Again, researchers have dug out a brands on performance parameters. In such major cause for such failures to be the lack of cases, consumers will look for balance in the veracity of the environmental claims made in psychological set by seeking supporting infor- advertisements. Consumers are found to be mation or by distorting contradictory informa- extremely sensitive to the credibility of the tion. As per cognitive dissonance theory, claims made by green marketers, and can when a brand does not meet expectations or quickly get suspicious about vague or am- when a competing brand is found to offer biguous statements. Though governments more benefits, the consumers will discount have laid out strict laws to prevent marketers the negative information and rationalize their from making false claims, brands have to en- behavior/purchase. The product rated higher sure that their claims are substantiated and on eco-friendliness can thus help consumer phrased clearly to prevent the loss of credibil- reduce post purchase dissonance when the ity. product is found to have defects or is weaker than competing brands on certain parame- Conclusion ters. Based on secondary research, we have found that marketers have to adapt their
  • 47. P AGE 47 green marketing strategies depending on the nature of the product. For high involvement Ankit Thakkar is a 2nd year PGP student with marketing products, environmentally friendly attributes specialization at IIM Lucknow. He holds Bachelor‟s Degree in may not be sufficient to persuade customers Mathematics from St. Xavier‟s College Gujarat and Post Graduate to prefer the product or pay a premium for it. Degree in Information Technology from SP Jain, Mumbai. He can Such products must match or provide addi- be reached at tional value when compared with other prod- ucts on various parameters such as perform- ance, brand, convenience and price. In con- Nishant V Patel is a 2nd year PGP student with marketing trast, green marketing can offer benefits for specialization at IIM Lucknow. He holds Bachelor‟s Degree in low involvement products. Claims of environ- Telecommunications Engineering from Bangalore. He can be reached mental friendliness of products, if clearly ad- at vertised, can cause a shift in consumer pref- erences. Answers to quiz on Page 41 Top Left: Taare Zameen Par Top Right: United Colors of Benetton Bottom Left: PETA Bottom Right: Fevicol
  • 48. Men’s Cosmetics P AGE 48 and Nivea shaving cream. That Nivea shaving cream was my first „Look at that nest! Seems like she personal cosmetic tube. has never used a shampoo in her (Reproducing Chapter 5 of my life‟. autobiography?) Today, I have a „Umm…even I haven‟t‟ dedicated table in my hostel room for cosmetics. I pretty much have a „What???‟ full range – right from Himalaya‟s Thus went a conversation way back Neem Face Wash to Lakme‟s sun in 1999 with a female friend of mine. protection lotion. I have migrated I had, till then, never ever used from water to Head & Shoulders shampoo. Not even Wipro Shikakai shampoo with cool menthol and I (where did that gem of an idea disap- use a Garnier Fructis cream condi- pear? I wonder). I guess I had a con- tioner afterwards. It‟s no secret that stant layer of grime on my hair and many men today spend almost as any excess was washed away by wa- much as women on cosmetics. And ter. Over time, like a bored married it‟s not because we are suddenly couple, everyone seemed ok with getting in touch with our feminine this arrangement. The grime actually side, but we just want to look good provided volume to my hair, I discov- and smell good. And if any woman ered this later in the era of the or man wants to taunt our breed, I shampoo. Back in those days, my request that person to take a ride idea – well, not mine, my mother‟s in a crowded Mumbai suburban actually- of moisturizer was sarson train in the summer at peak time. ka tel (most probably Dhara or Post- It is our deodorated and eau-de- man). In winters, I had to, under the toiletted arm pits your noses will strict commands of mommy dearest; search out amongst all the bacteria apply mustard oil all over before tak- laden smelly arm pits which would ing a bath. It was a matter of little surround you. concern that my vests soon turned yellow and I went to school vaguely smelling of the same blasted oil. I But do men relate to cosmetics in had just started shaving secretly us- the same way as women do? Indus- ing Dad‟s Philishave – or so I try insiders don‟t think so. Accord- thought. It didn‟t occur to me that ing to Noella Gabriel, director of my parents had observed the ab- product and treatment develop- sence of my facial fur. Soon after, ment at the Elemis spa, “Men are a Dad bought me my first razor, brush hard market, but once you've got T HE LOOK ING GLASS
  • 49. P AGE 49 them through the door, they are very loyal. has taken place in the market. HUL‟s Fair & Far more loyal than women.” So much for Lovely, launched in 1975 and initially tar- men being unfaithful. Though the Fair & geted at women, also came up with Fair & Handsome ad evoked more than its fair share Lovely Menz Activ. And why not? The Indian of snide remarks and jokes, it seems that male grooming segment is valued at Rs 750 Emami had done their homework. A study crore and growing at a pace of 20%, faster conducted by Emami Industries in the early than the global cosmetics market which is 2000s showed that 29% of the users of fair- hopping along at 18%. Shahrukh sure knew ness creams were men! I wonder how those what he was getting into when..well..when he 29% men managed to buy Fair & Lovely. got into that bath tub in the Lux ad. Probably they took as much courage as buy- ing that, than any other only-for-men latex products. Companies nowadays have gone Men have come of age. And know which beyond mere re-branding of their products. As creams to buy to beat it as well. We might it turns out, we have different skin than stand confused in the cosmetics segment of women. Hence, new products exclusively for malls trying to decide which cream to buy. men are hitting the shelves. But the fact that we are standing there, ac- tively deciding for ourselves and not pretend- ing that the moisturizer is for our better In fact, biggies like Nivea, L‟Oreal and Dabur halves is a sign of the changing times. But are all expanding their businesses in the why did we decide to take all that pain in the men‟s cosmetics segment. Nivea is focusing first place? Well, I believe Garnier said it best on its „Nivea for men‟ and L‟Oreal has the – „Because I am worth it.‟ „Powerlight‟ range of cosmetics to pamper men. Ayan Ghosh is a 2nd year student at IIM Lucknow. He holds a Bachelors Degree from National Institute of Technology, Surat and The fact that L‟Oreal used John Abraham, can be reached at who no one in their right mind would term feminine, shows the transformation which