The 3rd issue of the 1st volume of Magma. This issue covers Government bans export of cotton, Android market rebranded as Google Play, Nokia’s new 41 MP camera phone, IPL Carnival, Winners’ Loss, Innovating for the Community, The second P: Price.

1. Volume 1, Issue 3
Sydenham Institute of Management Studies, Research and Entrepreneurship Education
MAGMA MAGazine of MArketing An initiative by the SIMSREE Marketing Forum
Business News
Government bans export of cotton
In a move that took everyone from the Agriculture minister, Sharad Pawar to chief minister of Gujarat, Narendra Modi by surprise, the ministry of textiles has banned the export of cotton w.e.f. 6th March 2012. At a time where associations like the Cotton Association of India and others are on one hand trying to promote Indian cotton and textiles outside India and on the other hand trying to bridge the already large gap between surplus production and insufficient domestic usage of cotton, this move comes as a surprise to many.
http://goo.gl/uG95x
Android market rebranded as Google Play
In order to stand against competition such as Apple iStore and the Amazon Store, who provide a unified access to all digital content - be it apps, music, movies, ebooks or any other media – under one roof, Google has rebranded its Android Marketplace as the Google Play Store. Users can now manage their digital purchases and downloads with ease and have them easily synced across multiple devices.
http://goo.gl/ZOPGo
Nokia’s new 41 MP camera phone
This week at the Mobile World Congress at Barcelona, Nokia had a something to show that captured the hearts of mobile phone enthusiasts and photography enthusiasts alike. It unveiled its new 808 PureView mobile phone which sports a new 41 MP sensor. However, with very somber overall specifications and an outdated and laggy OS, the phone is unlikely to find mass appeal. However, most people are looking forward to Nokia utilizing the same sensor in its Lumia line of windows powered smartphones.
IPL Carnival
The next IPL season is just around the corner, and the folks over at Ogilvy have come out with a brand new, refreshing commercial for IPL. Dubbed as the IPL “Carnival”, the ad showcases a couple of school boys visiting a carnival featuring rides and attractions depicting various legends of cricket. The ad does a good job of communication the fact that IPL is not just about cricket, but an entertainment venture in itself. The ad ends with one of the kids wondering what the fuss is all about and the ‘ringmaster’ commenting “Yeh IPL hai boss!”
http://youtu.be/m3P8wKICzqU

2. Volume 1, Issue 3
Sydenham Institute of Management Studies, Research and Entrepreneurship Education
Winners’ Loss
By Jinali Parekh, Member
There are a few questions one needs to ponder upon.
Is it possible to conceive that the success and popularity of a brand such as Coca-Cola or McDonald’s, who were the pioneers in their product categories, could become a weakness?
Is it the case that the very fact that these path- breaking brands have carved a niche for themselves in the marketplace is stunting their growth?
Success is like a horizon – no limits. There is always room for expansion. There is always a way ahead. All that is needed is innovation and thinking out of the box. And also skepticism is at peak levels. Every move that is made is under a microscope and the entire world population is on the other side of it, tracking, judging, commenting and finally reacting to each of your moves. Hence each move has to be made after a lot of deliberation.
The strongest brands are also those which are the most tied down. Consumers know what they want from Coca-Cola (cola) and McDonald’s (fast food) and they don’t want anything different. So if McDonald’s wanted to set up a vegetarian, high class restaurant, it would need to change its brand name in order to attract customers. Coca-Cola has learnt from real experience. When it launched a range of Coca-Cola clothes, sales were far lower than expected.
So should Coca-Cola only sell aerated drinks and nothing else? Can McDonald’s sell only fast food? Is it the case that people think that they are not competent enough to sell something else? Even though you feel that these brands indeed are competent enough to venture around into other product categories, it is your mind that just doesn’t agree to the fact.
Brand perception has always been the crux of any marketing strategy for a brand. Al Ries has said it over and over again, marketing is not the battle of products, it is the battle of perceptions. It is simple logic. You want people to buy your product. You have to find a way in which they will remember your product. And human mind works in mysterious ways. To better understand what your message is up against, let’s take a closer look at the ultimate objective of all communication: the human mind. Like the memory bank of a computer, the mind has a slot or position for each bit of information it has chosen to retain. In operation, the mind is a lot like a computer. But there is one important difference. A computer has to accept what you put into it. The mind does not. In fact it is quite the opposite. The mind rejects the new information that doesn’t ‘compute’. It accepts only that new information that matches its current state of mind. It filters out everything else.

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Sydenham Institute of Management Studies, Research and Entrepreneurship Education
Take two abstract drawings. Write the name Schwartz on one and Picasso on the other. Then ask someone for an opinion. With the labels on, you see what you expect to see.
The Pepsi challenge proved that when blindly people were made to taste Pepsi and Coca Cola, majority of people preferred the sweeter taste of Pepsi compared to Coca Cola even though there is no doubt about Coca Cola’s far better lead than Pepsi in terms of market share. With the labels on, you taste what you expect to taste.
Were it not so, there would be no role for advertising at all. Were the average consumer rational instead of emotional, there would be no advertising. At least not as we know it today. If advertising’s sole purpose was only awareness why do you think the market leaders are still pouring in huge money in advertising? Everyone already knows about the brand. Than what’s the point?
One prime objective of all the advertising is to heighten expectations. To create the illusion that the product or service will perform miracles you expect. And presto! That is exactly what advertising does.
Let’s do a quick quiz:
What does Coca-Cola stand for? Cola
What does Cadbury stand for? Chocolates
What does Bisleri stand for? Packaged water
What does Xerox stand for? Photocopiers
These companies have spent a bomb and years together to become one of a kind in their category. Think carefully. They have become the category. But this super close association itself becomes harmful at times. Take the classic case of Bisleri. This name has become so much associated with the product category, that we go to a shop and just say that I would like a Bisleri. It doesn’t matter even if finally the guy at the counter is providing an Aquafina. In order to address to this issue Bisleri had even come up with an advertisement which recreated the above scene and then emphasized in the fact that when I ask for a Bisleri, give me a Bisleri.
Same is the case with Xerox. We seldom use the word ‘photocopy’ and stick with ‘Xerox’ even if the machine at the photocopy place is that of Canon.
But whatever the case, this itself is enough to show the success levels to which these brands have reached. So to ask the question again, can a brand become so successful? If a brand becomes globally associated with one type of product, it is almost impossible to change the consumer’s perception. After all, brands are names. If two people have exactly the same name, it can be confusing, and so it is with products. So Coca-Cola cannot do well selling clothes. The trouble is, although Coca-Cola is an internationally adored brand, people don’t want to wear a Coke, they’d always prefer drinking Coke. Another case is that of Xerox. Xerox has seen such humungous success that it has turned against it. It can no longer produce anything apart from photocopiers. It tried its luck in stretching beyond copying into the field of computer technology and data processing with Xerox Data Systems and then into fax machines. But it failed disastrously. The problem arises when a customer walks into a shop, hands over a piece of paper and asks for a Xerox. First he used to get a photocopy. But now there is confusion. Xerox also stands for faxing. So now if a customer wants Xerox, he has to also specify photocopy or fax.
There goes the USP of the brand.
Now let’s consider the case when the product category itself changes, regardless of the brand’s will. This situation may never have affected Coco- Cola or McDonald’s, but it has affected

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Sydenham Institute of Management Studies, Research and Entrepreneurship Education
others, most notably Kodak. Perhaps no market in the world has changed as quickly and as drastically as photography as more and more consumers are trading their standard photographic cameras for digital alternatives. It’s only a matter of time that the entire camera market goes digital. Kodak, however is a name intrinsically associated with conventional photographs. When most people think Kodak, they think little yellow boxes of film. They don’t think cutting-edge digital technology. What can one do in such a situation? Kodak however was so blind to the change happening around it that it took a lot of time and a lot of investment in reviving the conventional photography, to finally shift to digital photography. Till then it was too late.
Owning a category is also accompanied with owning an image in the minds of people. It basically means owning a word in consumer’s mind and every time the brain triggers this particular word/emotion, the brand recall happens. Building an image in people’s mind is a slow gradual process but it is the most effective method of improving brand recall among prospects
Hasn’t Coca-Cola just driven into our heads that opening a Coke is synonymous to opening happiness? Cadbury has literally changed the Indian landscape by majorly replacing sweets for all kinds of celebration – be it ‘aaj pehli tareekh hai’, ‘shubh aarambh’, ‘kuch meetha ho jaye’.
Image building can be both conscious and sub conscious. And brands should be aware of the sub conscious image that is being built within people. Take the case of Tata Nano. A car that was priced at a mere 1 lac, just imagine the kind of technological innovation that must have gone into making the product. The speculation was high too and every move of Nano was being monitored. But the sales did not match up. Why? It was because of the sub conscious image building. It could not live up to the hype. But it was never meant to live up to THAT much hype. Plus the positioning went wrong as people started seeing it as a poor man’s car.
Let’s take another example. The one brand with perhaps more mythology attached to it than any other is, without doubt : Harley Davidson
Harley Davidson owners aren’t just loyal. They love the brand. They do not care that the motorcycles they ride are not the best in terms of technology or that they may be prone to the occasional oil leakage. What matters is the bike myth – the freedom of the open road, and all its macho connotations. So the company thought about extending the name to other masculine apparels - Aftershave, perfume, Tshirts, socks, cigarette lighters, ornaments and wine coolers. All items very masculine, no doubt. But they bombed. Why? Again sub conscious image building was at play here. Image of Harley Davidson had become ‘possession’. ‘I am the lucky one to possess a Harley Davidson. And believe me, it came at a price. A price much, much higher than a T shirt’. That is brand dilution gone too far.
So the question here is, can a brand become bigger than the product? And if it does, is it good or is it bad? Small brands have big landscapes to scale, big brands have very little room for expansion. Couple that with the mammoth egos that these brands sport. Leaders often read their own advertising so avidly that they end up thinking they can do no wrong. The leaders should know what their brand actually means to people with whose emotions they have played over the years through millions of dollars spent by them. As they say, what goes around comes around.

5. Volume 1, Issue 3
Sydenham Institute of Management Studies, Research and Entrepreneurship Education
Innovating for the Community
It feels good when a brand innovates on an idea that benefits not only the brand but also the community. One such innovation is the children's park which was created by Cochin (Kerala) based ice-cream brand Uncle John. Original source : marketingnews91.com , article recommended by : Devans J Patwaa, SIMSREE
Uncle John is a famous local brand of ice-creams marketed by M/S Jojo Frozen Foods Pvt Ltd. The brand name is coined from the name of its founder MC John.
Uncle John's I-Drive is a small children's park located near the NH Byepass at Cochin. Cochin which is the business capital of Kerala only has two well maintained parks for the residents. Both these parks are located in the heart of the city which makes it difficult to reach thanks to the heavy traffic. The launch of this small park which is away from the traffic of the city has proved to be a big boon to Cochinites. The park is modeled as a traffic park for kids with cycles, battery operated cars etc and other standard outdoor plays like slides, see-saw etc.
What is interesting is that the whole concept of the park is ideated and executed by the brand. According to reports, the park is the idea of Mr.Joseph Simon who is a Director at the company which owns the brand. Another interesting fact is that the park charges Rs 25 as the entry fee ( per person) and the users can purchase ice-creams for that amount. The park already is a big hit among the residents of Cochin.
This park is a classic case of smart marketing practice where the brand takes an initiative to offer something that is useful for the community ( also the target market) at the same time benefiting itself in the process. The investment of the park is huge but it is going to benefit the brand in the long-term. The brand through this idea is able to attract the TG and also makes them experience the products and at the same time provides enjoyment to them. This is a classic case of experiential marketing.
Pic Courtesy : The Hindu
However, the brand despite being innovative in the concept somehow was not aggressive in promoting itself in the park. Except for a hoarding there is not much OOH media inside the park that enhances the brand's visibility. In a typical Sunday, around 700 families visit the park and that is an audience a brand will die for. There is lot of scope for innovation for the brand inside the park.Hope that the brand is able to sustain the park and gain its true return in terms of brand equity. The brand could have done lot of things inside the park that will enhance the brand's awareness and equity like
 Events
 Memorabilia
 Merchandise
 Contests
In the long term factors like safety, new games/rides, courteous staff, parking facilities, support of the corporation authorities will play a critical role in the success of this unique idea.

6. Volume 1, Issue 3
Sydenham Institute of Management Studies, Research and Entrepreneurship Education
The second P: Price
We continue our detailed analysis of the 4Ps with our next installment: Price.
Pricing is often considered to be the most important factor of the Marketing mix. This is because while all the other ‘P’s are expenses for the firm, this is the only factor which determines the firms revenues.
The important factors to be taken into consideration when setting the price are:
1. Fixed and variable costs to manufacture your product
2. Prices of your competition
3. Positioning of your product
4. Targeting of your product and the ability and willingness of your target group to pay for your product.
The various pricing strategies you may employ are :
1. Penetration Pricing: Initially set lower prices to increase sales and market share. Once market has been captured, increase your prices. E.g. Introductory Offers
2. Skimming Pricing: Initially set higher prices and then gradually lower prices to make the product available to a wider audience. E.g. Mobile Phones
3. Competition: Price your product in relation to
your competition’s. E.g. Mobile Service Providers
4. Product Line Pricing: Have multiple products in your product range aimed at different price points. E.g. Different editions of the windows operating system
5. Bundle Pricing: Bundle a group of products at a reduced price. E.g. Buy One Get One Free
6. Psychological Pricing: Consider the psychology of your price point before pricing your product. E.g. Rs. 99 instead of Rs. 100
7. Premium Pricing: Purposely set a higher price to reflect the exclusiveness of your product. E.g. Luxury Cars
8. Optional Pricing: Sell optional extras along with your main product to maximize your revenue. E.g. Mobile phone accessories
9. Cost Pricing: Take the cost of product and distribution into account and add your required profit margins to that figure to come up with your final price. E.g. Computer Parts
Certain competitive advantages like brand value, first mover advantage, patents and exclusivity allow you to price your product higher than what you normally would.
Invitation for articles
We are always looking for new articles to feature in upcoming editions of MAGMA.
Send in your articles to : simsree.marketing.forum@gmail.com