Soil markezine Feb


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The world is changing at a rapid pace and so is the Marketing world. And that is how we decided to come up with a MARkezine Edition which will capture the essence of things that are happening around.

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Soil markezine Feb

  1. 1. February 2013 CONTENTSFeatured Articles Page No Reader’s Message 1 Bottom of the Pyramid-Emerging 2 Target To Marketers Effective Marketing Strategies for 6 Start-ups Re-Thinking The 4P’S In The B2B World 11 Fight for mindshare of customers Can brands be Immortal? 13 Crossword Gamification- 18 An Emerging Trend in Digital Marketing
  2. 2. February 2013 Reader’s MessageHello Readers!!Team MARkezine is back with the February edition.HUL’s advertising on ‘rotis’ at the Kumbh Mela - ‘ Lifebuoy se haath dhoye kya?’. Isn’t it a fascinating idea toadvertise a product?The world is changing at a rapid pace and so is the Marketing world. And that is how we decided to come upwith a MARkezine Edition which will capture the essence of things that are happening around.We start the edition by recalling the term which was first coined by Dr. C.K Prahalad - Bottom of Pyramid.We see the several aspects put to practice by FMCG companies like HUL. Next, we have pointers for thebudding entrepreneurs to engage in Effective Marketing for Start-Ups. Once the Marketing concepts for theStart-Ups have sunk in we see how the 4 P’s differ for a Business to Business scenario.In the previous edition we have discussed a lot around Brands and now is the time to debate a question likeCan Brands be Immortal? Let’s see the ease with which our readers will be able to think through the question.What follows is “Gamification” unveiled.And this is where we end with a promise to be back with fresh content from the Marketing space.Happy reading..!!Team MARkezineEditing and Design:Ishwarya Lakshmi | Sheeza Shakeel | Shivaraj 1 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  3. 3. February 2013 Bottom of the Pyramid-Emerging Target To Marketers “Like the tip of an iceberg, the opportunity remains invisible to the corporate world.” — C. K. Prahalad and Stuart HarThe phrase “bottom of the pyramid” was used by Over the next 40 years the numbers in Lowest TierU.S. president Franklin D. Roosevelt in his April 7, (BOP) could swell to 6-8 billion or more since the1932 radio address, The Forgotten Man, in which he bulk of the world’s population growth is expected tosaid “These unhappy times call for the building of come from this segment. Poor of today is the middle-plans that rest upon the forgotten, the unorganized class of tomorrow. Yet, this sector has been largelybut the indispensable units of economic power...that neglected by the corporations. The real challenge isbuild from the bottom up and not from the top down, to visualize an active market when what exists is ab-that put their faith once more in the forgotten man ject poverty. It is almost the equivalent of visualizingat the bottom of the economic pyramid.”Bottom of a theme park where you see a swampPyramid refers to the billions of people living on less One of the best examples to understand the impli-than $2 per day, as first defined in 1998 by Profes- cations of BOP is that of Hindustan Lever Limitedsors C.K. Prahalad and Stuart L. Hart. The size of this (HLL), a subsidiary of Unilever. For over 50 years, itlargely untapped market is Staggering. Four billion catered to the needs of the top of the pyramid. Andpeople live on $1500 per year or less. then a local firm, Nirma, came into picture and soon challenged HLL in its detergent business, by creat- ing a new business system, a new product formula- tion, new manufacturing process, distribution, pack- aging, and pricing. HLL like most MNCs, initially dismissed Nirma as a low end producer. It was not thought to be a competitor in HLL’s “served market.” But as Nirma grew rapidly, HLL realized both its new opportunity as well as its vulnerability. Nirma was attacking from the bottom of the pyramid. HLL has to respond with its own offering for this market -al- tering its traditional HLL business model. The bottom of the pyramid is not a market that(Source: yields high margins. It is rather about volume (sinceuploads/2011/04/economic-pyramid.jpg) the unit sales are going to be high) and capitalC SCHOOL of INSPIRED LEADERSHIP MARKezine 2
  4. 4. February 2013efficiency.Managers who focus on gross margins will miss the Assumption 1:opportunity. Managers who innovate and focus on The poor are not our target consumers because withthe overall economic profit will be rewarded.HLL our current cost structures, we cannot profitablythen used the learned business principles to create a compete for that marketnew detergent market among the poor in Brazil. The Assumption 2:detergent brand “Ala” has been a huge success in The poor cannot afford and have no use for the prod-Brazil. In fact Unilever has adopted the bottom of the ucts and services sold undeveloped markets.pyramid as a strategic priority at the corporate level. Assumption 3:(Source- Presentation by John Ripley, Senior Vice Only developed markets appreciate and will pay forPresident, Unilever, at the academy of management new technology. The poor can use the previous gen-meeting, August 10, 1999) eration of technologyBefore Corporations could convert the poor into apotential customer base, they need to re-examine Assumption 4:their dominant logic - the core set of assumptions The bottom of the pyramid is not important to theand practices that are embedded in the firm. The fol- long-term viability of our business. We can leavelowing were identified as some of the widely shared Tier 4 to governments and nonprofits.orthodoxies that must change: 3 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  5. 5. February 2013Assumption 5: Bank and Danone build next year a yoghurt factoryManagers are not excited by business challenges in Bangladesh. Hindustan Lever has been investingthat have a humanitarian dimension. in a distribution network of women in remote areas to sell soap, toothpaste and washing powder in theirAssumption 6: villagesIntellectual excitement is in developed markets. It ishard to find talented managers who want to work at All this is based more on mutual benefits rather thanthe bottom of the pyramid what critics ‘assume’ good for the poor. For Instance:(Source- Japan External Trade Organization, 2009_ USAID wanted to use the Hindustan Lever networkBOP_Executive Research Associates) to distribute malaria medicines but HLL believe inBecause of these assumptions the market opportu- asking the network first what they needed most. Theynity at the bottom of the pyramid has remained in- found that diarrhoea was a bigger problem. Now thevisible. It is often treated as irrelevant with no use of network also distributes a cheap water purificationproducts, no buying power, no knowledge of brands product that can deal with 8 -12 litres a day, enoughand difficult to reach. It is like the well-known story for an average family in the country side. To tap thisof the person who finds a $20 bill on the sidewalk. market managers must first develop a commercialConventional economic wisdom suggests that if infrastructure tailored to the needs and challenges;the bill really existed, someone would have already which will comprise of Creating buying power, shap-picked it up. Like the $20 bill, the BOP also defies ing aspirations, improving access, and tailoring lo-conventional economic logic— it represents a large cal solutions— the four elements intertwined .Inno-and unexplored territory for profitable growth. vation in one will leverages innovation in the othersAccording to Lirneasia research, 41% of the BOP inSri Lanka owns their own phones and 21% of themare mobile phones. Another 31% is planning to buya phone. But 28% is not planning to buy, mostly be-cause they cannot afford to buy. This can be a pri-mary market for telecentres in Sri Lanka, accordingto Prof Rohan Samarajiva of Lireneasia. The growingawareness among the big corporations regarding theprofit potential of BOP can be seen in the initiativetaken by them lately. Free Energy Europe developed (Source- Strategies for the bottom of pyramid: Creat-cheap solar panels for the remote markets in Brazil, ing sustainable development_C.K. Prahald, Univer-Kenya and Indonesia. Fiat and Tata are develop- sity of Michigan Business School)ing cheap cars for the Indian market, that will costs100.000 Rupees.Unilever developed for the same In this article have just been able to sketch the out-market Anapurna Salt, salt with jodium, Grameen line of what seems to be the biggest potential marketC SCHOOL of INSPIRED LEADERSHIP MARKezine 4
  6. 6. February 2013opportunity in the history of commerce. It wouldalso mean lifting billions of people out of povertyand destitution; eliminating the root cause of socialdiscrimination, political chaos and environmentalmeltdown in short fostering sustainable develop-ment!!“The quality, efficacy, potency, and usability solutionsdeveloped for the BOP Markets are very attractive forthe top of the pyramid”Submitted by:Esha GuptaTAPMI (2nd Year)References: Fortune at the Bottom of the Pyramid: An Alternate Perspective –Anand Kumar Jaiswal 2007-07-13Jaiswal.pdf 5 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  7. 7. February 2013 Effective Marketing Strategies for Start-ups try experts, start-up ex- perts, entrepreneurs. By discussing on the idea they will be able to fig- ure out the nitty-gritty of the business, understand various small aspects that one needs to take care before starting. The better you know the idea, the better you can connect with your business and thus you can build better relationship with the customers as you will be able to connect to their needs and expectations and your venture.Start-up built up by the words ‘start’ and ‘up’ where Some simple questions that one needs to ask one-both the words are innovative and creative. It means self is Why this IDEA? Why THIS Business? Whatstarting from scratch and rising upwards and reach- DIFFERENCE will it make in the society/market?ing the zenith. For several people it is the source of What PAIN-Points does it solve? How MUCH cost-their zeal that drives them towards excellence and ing, sales and profits will we achieve? The more youcompetence. And to drive their start up towards suc- ask business to yourself the more the idea will get re-cess it needs proper nurturing, operations, care and fined and the more chances are there for its success.most of all marketing. Unless and until the buzz for 2. Market Analysisthe start-up is not built in the market it is difficult Several times start-upto drive them forward. Once it becomes famous and fails because they studypeople know of it then the real boom come. Many their market incorrectlya times we see that the start-up rise so fast, that it and make false assump-becomes unmanageable and thus the buzz fizzes out tions which later lead tosoon and the start-up gets lost in the dark. Now in severe consequences.order to reach the zenith lets ponder upon the points This will help entrepre-that can lead to proper marketing and thus sustain-able success of start-up. neurs remove their biasness towards their product. All the macro and micro - environment trends should1. Get the Idea Right be checked and looked for while doing the researchBefore setting up the business one must brain-storm like demographic, economic, technological, political,on the idea strongly. For this one must talk to indusC SCHOOL of INSPIRED LEADERSHIP MARKezine 6
  8. 8. February 2013social, cultural, material supply, etc. Now there are your business and startsome points to consider selling your brand. Nowchoosing market: the brands can be builti. Market Size: Is the segmentation and targeting on name, logo, idea, slo-done correctly to meet the demographic needs. Are gan and design of yourthe customers aware of your product? company. This is the way to build way intoii. Market Potential: What is the potential of the mar- the customers mind and heart. This can be done byket, will it be able to sustain the needs of the market. crafting meaningful positioning statements.iii. Market competition: Is the competition to fierce Now in order to market the brand you need to decidethat your product might get eliminated? the key points or POD that you are going to highlightiv. Value proposition: Is your value proposition when you are going to build your brand. The Tag-strong and unique enough to make its way into the line, logo, name has to catchy that can easily high-market. light the idea and get the attention of the customers.3. Setting appropriate Targets: Here the market research done will help what your Be sure to make the customers are expecting, how you can align your targets objective and product according to their needs. And best of all, it achievable. It should be will provide deeper insight how you should advertise consistent with the com- your product and services to the target customers. pany line of thought and Being a start-up one needs to start marketing at product/service. The moderate costs but using the techniques which pen- targets can be set by etrates the market and reaches to customers.benchmarking the product against the competitors Some of the points that can be considered areso that you can see what all area are going good and following:what needs improvements. It can be anything that is i. Build public relations:achievable and clearly defined as in 1000 new sign- The best way to be known in the market is to be inups or new customer in coming quarter. Along with the market. The more you know and have reached inthis the short term objectives should be aligned to the market the more you will be able to connect tothe long term goals. Also the conversion rate should your potential customers. This can be done throughbe measured so that more realistic and aligned tar- distributing leaflets, brochures, pamphlets and oth-gets can be set next time. er traditional advertising that makes your product4. Create your Brand and start building awareness known. Again flashmob is a new and innovative ideaof it: to market your product and create a fan-following forNow that you know the Point of Difference (POD) your idea.that your start-up is going to solve. You establish 7 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  9. 9. February 2013ii. E-mail marketing: customer to use your product/service repeatedly. ForTry to get the list of emails of the potential custom- this some scheme or card and other innovative ideasers. Through this technique you will be able to reach can be put together so that the customer stays withdirectly to them. The best way to do it is personalize your brand for a long time. It is a well-known fact thatthe idea according to their needs. In order to avoid it costs more to attract new customer than to retainthe spamming of the mailbox one need to take care the existing one. This make the more reasons to cre-of the points that are: ate loyalty program looking at the cost constraints. • Make sure the mail is being sent to the correct tract new customer than to retain the existing one.customers only else it can lead to the negative adver- This make the more reasons to create loyalty pro-tising of the brand. gram looking at the cost constraints. • The subject of the mail should be persuasive vi. Create your own website:enough to attract the attention of the customer while With your website you can reach to the customerhe is skimming through the mail anytime they want to, can provide the detailed in- • Always put the unsubscribe link or option in the formation of the product/service. It can be personal-mail. Also try to get the feedback from the customer ised according to the customers want and needs soat this point in time that why does he want to unsub- that greater brand association can be built with thescribe and what else he needs to be customised that start-up. You can showcase the unique selling pointit makes itself useful in customer’s perspective. of your product and how it actually solves their prob-iii. Personalising the product and advertising: lem or meet their needs. Here it can be done in detailIf one is launching advertising one should go for two what in advertising and other methods can’t be done.–three types which caters to the personalised needs vii. Responding to customer’s feedbacks, queriesof the customers and its affluent group. and grievance asap:iv. Discounts, Coupons and packages: As already been told retaining existing customersThese are attractive to induce the customers to pur- along with adding new ones should be the prime’schase or use your product. The packages, coupons focus of the start-up. To retain the existing one, oneshould be competitive in the market that actually need to make sure their loyal customers is never dis-forces the customers to change their brand and pur- satisfied or angry on the service they are offering. Forchasing habit. this they have to respond to the feedbacks, queries and grievance as soon as possible by setting 24*7 call centres, self-help service and others. viii. Develop partnerships based on mutually beneficial objectives: Being a start-up with limited budgets, one veryv. Creating a loyalty program: useful method to promote it will be to develop part-There should be some strong motivation for the nership and tie-up’s with others so that both sides’C SCHOOL of INSPIRED LEADERSHIP MARKezine 8
  10. 10. February 2013mutual benefits can be taken care. Through this one searching one gets linked to that page. Also settingcan advertise and promote each other brands and up the appropriate analytic tool is necessary to ana-strengthen their ties which can be harnessed later. lyse the need of the customer and what we are pro-Analysis viding thus providing a way to improve.ix. Online marketing:Online marketing in itself is so vast that for a start-up it will be difficult to cover all the aspects. Thoughthere are some important things that one need tomake sure are properly covered in all aspects. d) Content marketing: It is developing interest- a) Social Media: Today the world is rotating ing, creative and relevant content in your website,around Facebook, Twitter, Google plus. Most of the blogs, social pages which can be used as an effectivepeople are today using social media to connect, in- way to market the start-up. By reading these articlesteract and express themselves to the world. This is the target customers can associate themselves withnot only cheap, but also effective in promoting your the brand.brand value. It also helps in creating brand aware- e) Setting up Blogs: By having up the blogs theness and connection with the consumers. You can reviews, feedbacks and other minor details can begive the latest updates, offers, products, promotions scripted. This is also a way to retain and encourageon the go to the consumers and the persons follow- new customers to use the product or service you will be able to follow and like, comment and This can be done by identifying the right contentprovide feedback to you upon which one can re- writers which can keep others engaged with thespond instantaneously. product. b) Keyword Marketing or Adwords: Whenever f) Creating a Press Kit: One of the major successwe search for any product or service online we use factors for the start-up is to keep the media engagedcertain keywords like ‘online electronic market’. Now with latest product offerings, promotions and others.this is where one needs to be proactive and bid for This will keep your start-up coming in the news, talkssuch keywords which are used when searching in and other events which will help create the buzz withsearch engines like Google, Bing etc. When you pay the start-up which in turn will help them to gain newfor the keyword your website appears higher in the list which in turn raises the chance of hit on g) Webinar, Newsletters, eBook/Guides: Thisyour website. can be same as press kit in which you provide the c) Google Adcrawler: Google while creating the documents and articles to the customers directlyindex for its search it looks for the meta- keywords which they can access from their websites. This willassociated with the page. For this the pages must help the customer know more about the product andhave appropriate tags linked to them so that while create the brand loyalty and affection towards it. 9 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  11. 11. February 2013Adopting all the above marketing strategies withpersonalizing those techniques according to thestart-up will not help building the brand but alsohelp in new customers and developing brand loyaltyto them.Submitted by:Ravi RanjanIMT, GhaziabadC SCHOOL of INSPIRED LEADERSHIP MARKezine 10
  12. 12. February 2013 Re-Thinking The 4P’S In The B2B World product technology and quality even though these are no longer differentiators but are simply the cost of entry. It underemphasizes the need to build a robust case for the superior value of their solutions. It distracts them from leveraging their advantage as a trusted source of diagnostics, advice and prob- lem solving. 3. Introducing The “Save” Model And Its Feature: It is not that the 4P’s are irrelevant, just that they1. Introduction: need to be reinterpreted to serve B2B marketers. AsIt’s time to re-tool the 4P’s of marketing for today’s the chart below, today’s market demands the shift ofB2B reality. As a framework for fine-tuning the mar- emphasis from products to solutions, place to access,keting mix, the P’s- price to value and promotion to education-SAVE, in• Product short.• Place• Price• Promotionhave served the consumer markets well for halfa century. But in the B2B world, they yield narrow,product-focused strategies that are increasingly atodds with the imperative to deliver solutions.2. Disadvantages Of The 4P’S Tool From The B2BPerspective:In a five year study involving more than 500 manag-ers and customers in multiple countries and acrossa wide range of B2B industries, it was found that the4P’s model undercuts B2B marketers in three impor-tant ways: Figure: The “SAVE” Model It leads their marketing and sales teams to stress11 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  13. 13. February 20134. Preparing For The Shift: with the development and delivery teams. MotorolaMotorola Solutions, a pioneer of the new framework, Solutions required that specialist teams concentrateused SAVE to guide the restructuring of its market- on solutions and coordinate their approaches to spe- cific customer needs. This ensured that functionaling organization and its go-to-market strategies in boundaries did not determine the firm’s solutions.the government and enterprise sectors. Along the 5. Conclusion:way the firm identified three requirements for suc- B2B marketers who continue to embrace the 4P’scessfully making the shift from 4P’s to SAVE. model and mind-set risk getting locked into a repeti- tive and increasingly unproductive technological arms race. The SAVE framework is the centrepiece of a new solution-selling strategy-and B2B firms ignore it at their peril. Firms therefore, should seri- ously think about implementing the “SAVE” model to re-align its marketing strategy in order to cater to the demand of the existing market needs.4.1. Solution 1:First, management must encourage a solutions Submitted by:mind-set throughout the organization. Many B2B Arjyama Choudhurycompanies, particularly those with an engineering Mdi, Gurgaonor technology focus, find it difficult to move beyondthinking in terms of “technologically superior” prod-ucts and services and take a customer-centric per-spective instead.4.2. SOLUTION 2:Second, management needs to ensure that the de-sign of the marketing organization reflects and rein-forces the customer-centric focus. At Motorola solu-tions, this led to the dramatic reorganization of themarketing function into complementary specialities,allowing focus on each element of the SAVE frame-work and alignment with the customer’s purchasejourney.4.3. SOLUTION 3:Third, management must create collaboration be-tween the marketing and sales organizations andC SCHOOL of INSPIRED LEADERSHIP MARKezine 12
  14. 14. February 2013 Can brands be Immortal? The brands, unlike prod- services can die. Brands have the potential to liber- ucts and categories ate the companies from the limitations of category can be immortal and or product life cycle and its destruction of sharehold- can outlive the corpora- er value. tions. The management Given the intense interest in brands developing offshould focus more on brands and build them as a late and how to preserve their asset value, the CEOs,capital and look at them as an intangible asset of the CFOs and directors of all companies must appreci-firm. ate with much greater clarity the financial implica-The balance of shareholder value has shifted irrevo- tions of the brand management.cably from tangible assets to intangible assets. Intan- The key role of marketing in this context can begible assets account for a growing proportion of the said to reside in managing a company’s customerscompanies’ market value, as corporate performance by identifying, influencing, acquiring, serving, sat-and profitability are driven more and more by the isfying and retaining them at a profit. The productexchange and exploitation of ideas, information, ex- of this process would be the ‘customer capital’ – thepertise and service, and less and less by control over company’s customer base and to a large degree, thephysical resources. Intangible assets include a host present and future value of the business, as it is usu-of elements like patents, strategic alliances, custom- ally its prime revenue generating asset. The man-er lists, employee know-how and other forms of non- agement should be keenly aware of, and planning tophysical assets, but in many companies these days, mitigate, the risk factors for the company in termsthe most important intangible asset is the ‘brand’. In of the rate at which it is winning or losing custom-fact, in some sectors, brands comprise up to 70% of ers and the rising, or falling, future revenues that im-the companies’ market capitalization. plies. The nature and strength of a brand’s relation-Experts consider that the concept of brand life cycle ships with its customers can vary significantly overis an old-fashioned and outmoded one. There can be time and according to factors beyond the control ofproduct and category life cycles, with their charac- marketing that may affect either the company or theteristic phases of birth, growth, maturity and decline. customer or both. These factors might include theBut brands, if desired, can be immortal. A company’s economic climate, social trends, technological ad-relationship with the customer is based upon much vances, product or service performance, competitivemore than the functional performance of the prod- activity, editorial coverage and word of mouth as welluct or the service that the company provides. This as customer life stage, employment and personal ex-makes the brand immortal, while the products and perience, to name a few.13 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  15. 15. February 2013So, the concept of customer capital can be used to Capitalism has created a vested interest in keep-build a bridge between the inputs of business and ing brand alive, and every year as the cost and com-marketing strategy and the outputs of revenue plexity of creating brands increase, this interestgrowth, profitability and shareholder value. strengthens. Thus, the companies’ success increas-One major risk that a company takes by using this ingly depends on the longevity of their brands. Butconcept of replacing the asset of brand equity with successful brand management would require a fullthe capital item of the customer capital, would be of understanding within the company of the value ofshifting the role of marketing towards the short term a brand. Only if the value of the brand is known andand taking the attention away from the longer-term fully appreciated will there be less of a tendency tobuilding of shareholder value through brand equity. allow it to wither away, a direction would be foundAnother key issue would be if there is a universal to preserve its value and safeguard the historical in-means of calculating the customer capital. This en- vestment made into it. If this can’t be done, it will betails knowing the value of a brand’s customers and sold off to somebody who can make better use of it,the likelihood of recruiting or retaining them over a but at a full value and not at the distress value. Thegiven time period, which is a function of the brand’s problem here is that most companies do not havecompetitive strength. For companies having a direct accurate understanding of the value of their brands,relationship with the customers via catalogues, di- and therefore allow them to decline, while retainingrect mail or internet, it is easier. But for brands sold ownership.through wholesalers, retailers and other intermedi- The death of a brand through re-branding exercisesaries the calculation is hard to build into a forecast of becomes unavoidable in many cases as the originalcustomer capital but has massive implications for it. brand has been allowed to become too old-fashioned or competitive to be sustainable. The rebirth exer- cise is a lot easier in retail due to habitual shopping patterns and the fixed nature of outlets combining to ensure that the new format starts with an inherited customer footfall. It is rare outside retail, but killing off a neglected brand can sometimes be the only way to save the business. Well-managed brands never get to see such a situation. The few beneficial brand deaths are very much the exception that proves the general rule of the value of brand immortality. More usually the demise of a brand signals the destruction of shareholder value, through a reduction in the intangible asset base of the company. The CEOs, boards of companies, theirC SCHOOL of INSPIRED LEADERSHIP MARKezine 14
  16. 16. February 2013investors, analysts, advisors and journalists who quired by the Dutch company Akzo Model, the Cad-write about them, all need to take a much closer in- bury’s Dairy Milk, Thums Up, etc. Often it is the ex-terest in the role of marketing and communication pectation that those brands may be better off in thein the creation and maintenance of brands and in the hands of another corporation that is responsible for12% of all shareholder value the account for on an av- the extinction of the original owner.erage across all of the world’s stock exchanges. Brands are sometimes allowed to die, often justi- fied by the spurious mantra of the brand life cycle. Though it is not possible to rejuvenate every strick- en brand, and within a multi-brand company it may not always make commercial sense, there’s too much grievous bodily harm done to brands and sometimes outright brand slaughter. The brands though indeed have unlimited potential to be immortal, and their death is usually a result of the failure of imagina- tion and/or investment by their owners. A firm mustIn his book Why most things fail, Paul Ormerod puts know how to cheat brand death, not just in its oldforth a persuasive case for the inevitable mortality of age, but also in its infancy and all stages in between.corporations. He draws intriguing analogies with na- One of Damien Hirst’s most celebrated works is ature and extinction of species. He says, that as with shark preserved in a vitrine full of formaldehyde.human life, good care can starve off the inevitable The title given to it is, The physical impossibility offor a while, but, eventually time catches up with them death in the mind of someone living. Brands are likeall. His analysis suggests that there is a continuous sharks, they keep moving to stay alive, and the roleextinction of companies at the rate of about 10% per of brand managers would be to ensure that they keepannum, but every so often there is a dramatic peak, moving and in the right direction, at the very least,during which in a short period very large numbers going with the flow of market evolution, riding thego out of business, as many as 60% in a single year. waves of competition and modulating communica-Companies also disappear due to mergers and ac- tions in tune with the ever-shifting consumer senti-quisitions. ment.However, on the last page of his book, Ormerod as- of the strategic marketing tools that has uninten-serts that almost all brands fail eventually. I would tionally done more than any other development tobeg to differ here. Why should brands die? Time and perpetuate the myth of the mortality of brands is thetime again, we have seen brands who outlive the cor- Boston matrix, with its widely known but little un-porations who created them. For instance, KitKat, derstood categories of ‘stars’, ‘cash cows’, ‘dogs’ andconfectionary bar first created by Rowntree and now ‘question marks’.made by Nestle, or the Dulux brand which was ac-15 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  17. 17. February 2013The application of this matrix to the brands comes and the consumers.with an assumption that at some point of time whenthe category growth falters, a brand will progress tothe cash cow status, and thence fade. But since thetool was for category management and not for brandmanagement, it can create a self-fulfilling prophecythat growth falters so marketing support is cut andso growth falters further and so on. A powerful anal-ogy to bring this point to life is that of an aircraft inflight and the plane’s fuel supply is cut off and theengines stop. But the fact is that the place would notfall out of the sky immediately. It can indeed glide forsometime before inevitably hitting the ground. Thesame thing would happen to brands whose invest- 2. A brand image belongs not only to the brand butment in marketing and communications is cut off. also to all those who have knowledge of that brands.In today’s times, the brands are entering a period of 3. The image of the brand is highly subjective andretailer power in which only strong brands, i.e. the no two people however similar would have the samebrands which are more valuable to consumers than view of the brand.competitive brands and the brands that have added 4. To build a global brand, therefore, is a contradic-value and would be able to sustain healthy margins. tion in terms and impossibility.These values are increasingly becoming non-func- 5. People form conclusions about a brand as a resulttional, and the creation of integrated brand person- of uncountable number of different stimuli, manyalities that unite non-functional and functional val- of which are beyond the control or influence of theues would become essential. This brand personality product owner.must be unique and should be constantly develop-ing to stay unique in order to remain salient and 6. Brands, unlike products, are living, organic enti-profitable. ties. However, they change imperceptibly, every sin- gle day.Jeremy Bullmore has provided with an image ofwhat a brand is and how it is made. He says that peo- 7. Much of what influences the value of a brand liesple build brands as birds build nests, from scrap and in the hands of its competitors.straws we chance upon. A number of his key conclu- 8. The only way to begin to understand the naturesions are as follows – of brands is to strive to acquire a faculty that only the1. Products are made and owned by companies while greatest of the novelists possess and that is so rarebrands are made and owned by people, the public, that it has no name.C SCHOOL of INSPIRED LEADERSHIP MARKezine 16
  18. 18. February 20139. It is universally accepted that brands are a com- they are well-managed they can as well be immortal.pany’s most valuable assets, and yet there is no uni-versally accepted method of measuring that value. Submitted by:10. The only time one can be sure of the value of a Bhavi Patelbrand is just after it has been sold. Institute of Rural Management, Anand11. Brands are not hierarchically inferior to compa-nies, in fact, if companies are managed as brandsonly then can they be hopeful of success.One of the key observations here is that brands areincreasingly outside the control of marketers. Welive in an era when consumers, in the chat rooms andsocial networking sites of the online world, increas-ingly mould brands, rather than their owners. Thisisn’t so new, since people have always overlaid theirown thoughts and experiences on the marketing-created image of brands which sometimes has haddestructive consequences. Co-creation is a very realfact of life for brands. They feed the online and of-fline buzz that shapes perceptions and hope to miti-gate any adverse impressions.This process is increasingly distant from the old-fashioned view that advertising alone builds thebrands, which formed the ‘what you tell them is whatthey think’ school of marketing. Today, advertisingis only one of the influences that may condition theconsumer views of a brand, but is likely to work pow-erfully only if it works in tandem with other influ-ences. This realization has led the marketing worldinto an uncertain field of co-creation and there havebeen mistakes along the way.Thus, a clear corollary of Bullmore’s bird’s nest anal-ogy, and his insight that brands exist independentlyof the corporations, products and services they de-rive from is that brands can therefore outlive them. If17 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  19. 19. February 2013 Gamification- An Emerging Trend in Digital Marketing What is Gamification? Gamification is using game tactics in real life scenarios to achieve some prede- fined roles. It includes giving incentives to people, giving them discounts based on points accumulated etc. At the car was station, we get a free car wash for every 10th car wash. When we fly by a particular airline, we get some points with the promise of op- portunity to redeem those points to get some incen- tive. Gamification is reward-participation system. From very small activities like Facebook page likes, blogs, tweets etc to big scale activities like bulk buy- ing, exchange offers, can bring rewards for the us-In the new era of marketing, the marketers are busier ers. Rewards can vary from virtual points, discountsin selling incentives rather than products. A study on articles, special promotional goodies etc. Theseshows that consumers are getting attracted towards rewards are the main attraction for the consumers.a lesser quality product but with some extra incen- They help to increase sales, create brand awareness,tives attached to it than a higher quality without brand reputation and easy advertisements. Accord-incentivized product. Incentives drive purchase be- ing to Gabe Zichermann, CEO and founder of Gami-havior. It makes one buy more than desired and in- fication Co, Gamification consists of three Fs: fun,creases level of loyalty for a brand. Gamification is friends and feedback. He says that Gamification isthe technique to capture this increasing desire for like making everything feel like a game. Siemens,incentives. Plantville, SAP and IBM are just a few examples citedA large number of organizations are using Gamifica- by Forbes 2000 that have implemented Gamificationtion techniques now days. Gamification helps com- techniques and have seen considerable changes inpanies to encourage employees for better job per- the employees’ performance. A research shows thatformance, crowdsource ideas and even train people. by 2015, 50% of the companies will be using Gami-The world is getting filled with Gamification ideas. fication techniques in innovation methods and 70%Attracting customers, influencing behaviors, modu- of big companies will use Gamification techniqueslating beliefs, in almost every sphere, Gamification in next three years while small companies won’t. Atechniques are playing its role. research by M2 says that Gamification will increase from $100 million in 2011 to $2.8 billion in 2016C SCHOOL of INSPIRED LEADERSHIP MARKezine 18
  20. 20. February 2013Gamification: Is everything a game? doing better and told about his contacts performanceUnderstanding the user’s behavior, their source of The app is using gaming techniques (reward, com-motivation and use of techniques to reward them for petitions, achievements, progress tracking, challeng- es and the like) to make the person do something. It motivates and rewards as a way of doing something, and it is this element of Gamification that is most interesting and exciting for brands. Getting the right motivation and rewarding the be- havior marketer wants, give people more reasons todoing things that ultimately helps to achieve the aim spend time with your brand and to tell others aboutis the real benefit of Gamification. Every job should it. Understanding theinvolve element of fun. Games are thought of as fun, motivation of customer and push or prompt themthey include elements of competition with others to buy and to engage them in meaningful ways, re-and with you, and ultimately they result in a win- warding them for the things that they do that benefitner. them.Using the techniques involved in games which make Gamification:them such addictive and successful is the way to pro- Not only about offering free stuff, it’s about statusvide value to brands. Gamification in social media isnot about your brand finding the next Farmville; it isabout something more complicated than this, but ul-timately something that should be more successful.The most critical thing in marketing: Understand-ing what people want to achieve and their behaviorwhen they do so. Gamification uses game mechanicsto help people get where they want to get (and in-deed where marketers want them to get) - rewardingand motivating them along the way. Take a simpleexample: An app on the phone tracks the run of aperson sending it to the twitter account, so that peo- During a statement at TNW 2012 Gamification CEOple can see the updates like duration and distance Gabe Zichermann suggested that companies mustof run. first understand what it is about video games thatThe person is also told when the distance covered is engage consumers.better than the previous weeks. The upshot is that “It is not just throwing some badges on your website.the person is rewarded for doing well, pressured into Although badges are important, they are not the19 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  21. 21. February 2013only thing we need.” there is engagement of digital technology. So Gami-The belief among marketers that free stuff drives fication-application of reward structures to manipu-consumers is wrong. In fact, the critical reward that late behavior, plays a considerable role in their life.marketers can offer consumer is status, followed by There are examples of various e-commerce websitesower over their peers, free stuff and cash prizes.Take that we come across daily like, flipkart.two scenarios com etc, all of these use Gamification methods to in-In scenario A, consumer is given a free cup of coffee crease their businesses. Using points system to in-In scenario B, consumer is given the privilege to crease sales is a very common practice now a dayshave the coffee at Starbucks where he/she is given and it is going to increase as the penetration of digi-special treatment which will give consumer a status tal marketing will increase. Several other examplesquotient like small games to earn points and promote the product, games to increase awareness etc are veryIt is observed that humans who are emotional beings prevalent now days.would choose option B anytime. This psychology ofoffering customers status above their peers develops In international scenario as well some very famouslong term brand loyalty rather than rewarding them services like foursquare, BART (Bay Area Rapidwith free stuff which is a quick gain. Transit) system are using Gamification techniques.Gamification- Trend in Digital Marketing Foursquare uses gaming techniques to encourage people to get engage in very small activities like checking into their locations, creating a network or community of people. BART in San Francisco uses foursquare services to bring a new perspective of public transportation. Starbucks uses its own reward system in digital marketing and is creating a good number of loyal customers. Nike and several other brands are using gaming techniques to increase their presence in digital world. Conclusion:Generation Y, which is commonly referred to as “mil-lennial” or the “Net Generation” has grown up withvideo games. They have special inclination towardsgaming techniques in marketing. This means thatGamification has special impact on their life. Theyexpect digital intervention in almost every sphereof life. In workplace, market, social life everywhereC SCHOOL of INSPIRED LEADERSHIP MARKezine 20
  22. 22. February 2013Gamification is a relatively new technique to at-tract customers and to get hold in digital marketingworld. As generation Y has taken the lead, there isa need to provide them the similar kind of action inand outside their work environment and with the ad-vent of digital marketing, Gamification’s importancehas increased three folds. So there is a need to imple-ment Gamification techniques in digital marketingto capture the market.Submitted by:Ayush GulatiGuneet Singh ArnejaGreat Lakes Institute of Management, Chennai21 MARKezine C SCHOOL of INSPIRED LEADERSHIP
  23. 23. February 2013 We want to hear from you! markezine@soilindia.netC SCHOOL of INSPIRED LEADERSHIP