This article discusses one-to-one marketing, which involves customizing communications and offerings for each individual customer based on their preferences. While this approach sounds new, proprietors have long taken care of customers by remembering their details. However, mass production strategies replaced personalization. Now, educated consumers want individual treatment, competition is high, and technology enables detailed customer data collection and targeted communications. To implement one-to-one marketing, companies should differentiate customers by needs and values, identify prospects and customers, and understand each customer's wants and purchase behaviors. This personalized approach can foster loyalty and returns.
Our company follows ISO9000 quality management system, has rich technical force,funds and perfect management system.We take"first of quality,first of reputation,first of customer"as the purpose all the time.Therefore,we have got high opinions from domestic consumers and abroad. We hope that your choice and our service will become unity!
Our aim is to build strong long term business relationships with wholesalers and retailers,
however business is business and we are always happy to cooperate with smaller clients too.
There have been some spectacular comebacks in the history of brands, think Apple, think Mini, think Old Spice. But there have been many, many more failures, Rover being a particularly bruising one for the British Automotive industry.
It's not difficult to find a struggling or dying brand using our proprietary tool - BrandAsset® Valuator (or BAV™), just watch for falling relevance and consequent falling consumption. That's nothing new, and there are many reasons for these issues. But is there something about certain brands that mean they stand a much better chance of staging a comeback?
We think so.
Using a combination of predictive brand metrics from BAV™, John Keaveney of our EMEA BAV team has identified three vital signs that reveal whether a brand has a good fighting chance of revival or not.
Sign 1: The brand is still remembered and known more than it is currently liked. (Knowledge is greater than Esteem in BAV.)
Sign 2: The brand is liked more than its current relevance and usage levels. (Esteem is greater than Relevance.)
Sign 3: Most importantly, the brand still possesses its unique point of difference or reason for being that once made it popular. (Strong Differentiation.)
If you combine these indicators with low relevance (and associated lower usage), you get a distinctive diagnostic 'Pillar Pattern' of a brand that has lost its way but is still capable of a comeback.
We have explored this phenomenon further in our presentation - Brand Revival, which potentially has profound implications for companies considering reviving historically successful brands, as well as a watch out call for brands that are losing their strength.
Our company follows ISO9000 quality management system, has rich technical force,funds and perfect management system.We take"first of quality,first of reputation,first of customer"as the purpose all the time.Therefore,we have got high opinions from domestic consumers and abroad. We hope that your choice and our service will become unity!
Our aim is to build strong long term business relationships with wholesalers and retailers,
however business is business and we are always happy to cooperate with smaller clients too.
There have been some spectacular comebacks in the history of brands, think Apple, think Mini, think Old Spice. But there have been many, many more failures, Rover being a particularly bruising one for the British Automotive industry.
It's not difficult to find a struggling or dying brand using our proprietary tool - BrandAsset® Valuator (or BAV™), just watch for falling relevance and consequent falling consumption. That's nothing new, and there are many reasons for these issues. But is there something about certain brands that mean they stand a much better chance of staging a comeback?
We think so.
Using a combination of predictive brand metrics from BAV™, John Keaveney of our EMEA BAV team has identified three vital signs that reveal whether a brand has a good fighting chance of revival or not.
Sign 1: The brand is still remembered and known more than it is currently liked. (Knowledge is greater than Esteem in BAV.)
Sign 2: The brand is liked more than its current relevance and usage levels. (Esteem is greater than Relevance.)
Sign 3: Most importantly, the brand still possesses its unique point of difference or reason for being that once made it popular. (Strong Differentiation.)
If you combine these indicators with low relevance (and associated lower usage), you get a distinctive diagnostic 'Pillar Pattern' of a brand that has lost its way but is still capable of a comeback.
We have explored this phenomenon further in our presentation - Brand Revival, which potentially has profound implications for companies considering reviving historically successful brands, as well as a watch out call for brands that are losing their strength.
A case study focusing on world’s two biggest names in the sports brands today - Nike and Adidas. Gives a good viewpoint to the marketing strategy of both.
Shoes On Nike
1
Executive Summary:
Situational analysis
▪ Background data on sales & costs.……………………………………………....Pg. 2
▪ Competitors………………………………………………………………………....Pg. 4
▪ Customers…………………………………………………………………………..Pg. 5
▪ Company …………………………………………………………………………...Pg. 6
▪ Community …………………………………………………………………………Pg. 8
Marketing strategy
▪ Mission ……………………………………………………………………………..Pg. 9
▪ Marketing and financial objectives ……………………………………………...Pg.10
▪ Target Market & Positioning ……………………………………………………..Pg.10
Marketing tactics
▪ Product Offering…………………………………………………………………..Pg. 11
▪ Distribution………………………………………………………………………...Pg. 13
▪ Promotion………………………………………………………………………….Pg. 15
▪ Pricing ……………………………………………………………………………..Pg. 17
Financial projections
▪ Break Even Analysis ……………………………………………………………..Pg. 18
▪ Cost Forecast……………………………………………………………………...Pg. 18
▪ Sales Forecast………………………………………………………………….....Pg. 18
References
▪ References………… ……………………………………………………………..Pg. 20
2
Part 1: Situational Analysis
1.1 Background data on
sales and cost
Nike was founded in the
State of Oregon in January
1996, by a track athlete, Phil
Knight and his coach, Bill
Bowerman (Nike 2017 10-K
Form, 2017).
Being the leader in the
athletic industry, Nike is the world’s largest supplier of athletic wear. Nike’s products are
divided into footwear, clothing, and training accessories. There are eight main
categories of Nike’s brand products. They are: running, soccer, basketball, action
sports, sports-inspired lifestyle products, golf, men’s and women’s training (Nike 2017
10-K Form, 2017).
Comparing Nike’s and
Adidas’ market capitalization
provides evidence of how Nike
grew as a company in athletic
wear during the past 17 years.
In 2001, both Nike and Adidas
started with a market
capitalization of close to 4
3
billion. In 2005, Nike, Inc. gained its lead in the industry, with its market capitalization
grew at a faster rate than Adidas. By 2010, Nike gained a market capitalization of 63.45
billion, and an annual revenue of 19 billion. In 2015, Nike’s market capitalization was
82.6 billion, while market capitalization of Adidas lagged behind at 17.1 billion (image
and text, Leach, 2015). During the 2017 fiscal year, the annual revenue for Nike, Inc. is
$34.4 billion, which rose 8% from the previous year on a currency-neutral basis (Nike
news, 2017).
Nike’s “swoosh” symbol was developed in 1971, and was registered with the
United States Patent and Trademark Office in 1974. Over the years, the Nike brand
became one of the strongest brand in the world. Currently, the Nike brand ranks as the
18th strongest in the world, estimated to be worth 27.0 billion dollars (Interbrand, 2017).
Along with its long-stand slogan “Just Do it,” the Nike brand became the face of the
company. Consumers associate the Nike brand with “superior quality, style, and
reliability” (De.
1. The MARKSMAN
K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH VOL. 3| ISSUE VIII| FEB‘13
COVER
STORY
2. EDITOR’S DESK
Dear Readers,
Welcome back to a brand new edition of your favourite marketing magazine
and guide – THE MARKSMAN!
In our endeavour to incessantly add more value to your reading,the cover
story for the issue is One to One Marketing, a personalization of
interactions with the customer which fosters greater customer loyalty and is
now considered a better return on marketing investment.
Our special story is on Marketing Warfare, taken from the trenches of
modern warfare are a set of strategies that marketers use today to make a
kill.
Our featured article of the month talks of RIM’s rebranding to Blackberry
and what the future holds for this brand. We would like to congratulate
Aditya Khajuria (Goa Institute of Management) for being adjudged the Best
Article of the Month.
Get to know what happened in the First Marketing Round Table Conference
held at SIMSR. The panelists include eminent industry figures like Dr.
Bhaskar Das, Mr. Dharmendra Satpaty and Mr. Amit Tripathi.
This months’ Brand Markive tells the story of Nike and how it emerged from
scratch to become one of the strongest and brightest brands of today. In It’s
All About AD-itude, this time we give you a triple treat with a special
inclusion of a fresh new OOH campaign along with the featured TVC and
print ad.
Unwind with our regulars- SquAreHead, Bookworm, Tweets and Hall-MARK
Campaign. Get inquisitive with Buzz and do not forget to write in with
articles (check the last page for topics), your thoughts or suggestions.
Cheers !!
Team – Marksman
The Interface – The Marketing Club of SIMSR
01 FEBRUARY 2013
3. CONTENTS
It’s all COVER STORY
TWEETS
about
AD-itude!
03
06
Brand Hall-MARK
MARK ive Campaigns
04 07
ONE to ONE MARKETING
SPECIAL STORY 08
FEATURED ARTICLE
RIM rebranded to Blackberry at
MARKETING WARFARE the launch of Blackberry 10. Will
12 it work? …15
Rewind 17 Bookworm 19
SqAreheaD 20 BUZZ 21
THE MARKSMAN 02
4. TWEETS
Google planning to launch its own retail stores by December
Some unconfirmed rumors from multiple unnamed sources claim that
Google wants to provide space for customers to try out its Nexus
devices, software like the Chrome browser and unnamed upcoming
products. Google's already opened a few pop-up shop at temporary
locations in airports and in other stores, like the one pictured above in
the UK. It wants to further expand to full fledged stores by the holiday
season.
RIM rebrands itself to BlackBerry along with BB10 launch
RIM(Research In Motion) recently launched its latest iteration of mobile
operating software, BB10 and two phones supporting it, the BlackBerry
Z10 and BlackBerry Q10. With this they also renamed the company to
BlackBerry to have a more consistent image with the product. They have
also changed the name of their app store from BlackBerry App World to
BlackBerry World. To top it up, they shall now add music and videos to
their stores.
Nestle finds horsemeat in beef pasta meals in Italy and Spain
Nestle, the world's biggest food company, has removed beef pasta meals from
sale in Italy and Spain after finding traces of horse DNA.
The discovery of horsemeat in products labeled as beef has spread across
Europe since last month, prompting product withdrawals, consumer anger and
government investigations into the continent's complex food-processing chains.
Nike, Oakley move away from Oscar Pistorius
Two major sponsors, Oakley and Nike, distanced themselves from
Olympic athlete Oscar Pistorius on Monday after the South African
sports star was charged with murder in the shooting death of his
girlfriend. Oakley, the eyewear maker, suspended its contract with
Pistorius, and Nike, which sells shoes and other athletic gear, said it has
no plans to use him in future ad campaigns.
Pistorius lost both of his legs in childhood. Racing on carbon-fiber
blades, he was the first amputee athlete to run at the world
championships in 2011, and he made history competing in the London
Olympics last year.
Reader's Digest parent company files for bankruptcy again
The owner of magazine Reader's Digest, once the staple of doctors'
offices and coffee tables, has filed for bankruptcy for the second time
in less than four years, citing a greater-than-expected decline of the
media industry.Its international operations are not part of the filing. It
is the second time the company filed for bankruptcy protection since
2009.DeWitt Wallace and his wife Lila Acheson Wallace founded
Reader's Digest in 1922. The magazine offered readers stripped-down
versions of articles about health, home and family from other
publications. It eventually became the best-selling consumer magazine
in the United States. Today it operates print and digital magazines,
books, music and videos worldwide and has more than $1.1 billion in
assets, according to court documents.
03 FEBRUARY 2013
5. Brand MARK ive
NIKE
Just Do It. These three letters combined with the Swoosh
symbol, could be said to be one of the most famous and
recognizable brand elements the world over. But before there
was the Swoosh, before there was Nike, there were two
visionary men who pioneered a revolution in athletic
footwear that redefined the industry.
These men were Bill Bowerman and Phil Knight. Bill
Bowerman was a track and field coach at University of Oregon
and Phil Knight was a middle distance runner from Portland.
Together, these two men made from scratch the Nike we all know. Together they
pledged $500 each and in January 1964, Blue Ribbon Sports was formed.
The name Nike and the Swoosh symbol only came up in 1971 and 1972
respectively. Nike is since a household name for performance sportswear and they
have many a famous technologies like Nike Air and Nike Airmax to their credit.
Air Jordan, a signature shoe for
basketball player Michael Jordan
was a runaway success too. They
also purchased big established
brands like Converse, Hurley, Cole
Haan, Umbro and also made a
separate brand for its golf
equipment called Nike Golf.
THE MARKSMAN 04
6. Brand MARK ive
By the acquisition of
Converse, Nike could tap the
huge casual shoes market, also
called sneakers. Hurley was a
lifestyle brand basically for
surfing and skateboarding
clothing and equipment. Cole
Haan is a high end Formal shoe
maker and Umbro is into
football equipment.
In late 2012, Nike sold off
Umbro and Cole Haan to focus
more on their more popular
shoes.
Nike has also been well known for coming up with hard hitting and impactful yet
subtle advertisements. Their “Bleed Blue” campaign with the Indian cricket team was a
huge hit too. Majority of their advertisements have very little text and have more of a
self explanatory imagery associated to it.
All this, and much more has gone into a brand that is a byword for pure athletic
performance and latest in technological innovations and this has resulted in Nike being
the No. 1 sporting goods company for over two decades now. Just Do It..Well they sure
practice what they preach!
05 FEBRUARY 2013
7. It’s all about AD-itude
Mercedes Benz campaign would make you look twice!
Media: Print
Advert title: Look to the side without looking to the side
Creative Agency: Jung von Matt, Hamburg, Germany
This print campaign for Mercedes Benz plays on the fact that you
don’t have to turn your head and look over your shoulder while
driving by featuring a compelling illusory visual.
The tagline “Look to the side without looking to the side” itself
grabs lot of attention.
The campaign won a Gold Lion at the Cannes Advertising Festival
and also won first place at the prestigious Red Dot Design Awards.
Idea Cellular comes up with yet another
HUL’s Roti Reminder! brilliant Idea!
Media: OOH Media: TVC
Advert title: Telephone Exchange
Advert title: Lifebouy se haath dhoye kya? Creative Agency: Lowe Lintas, India
Creative Agency: OgilvyAction, India
At Kumbh Mela, the largest congregation on After addressing environmental, political,
earth where all big marketers are trying to sell caste, language and population control
their products and boost their brands, one issues, telecom player Idea Cellular's latest
promotion that stands out is Hindustan television commercial, built around the
Unilever’s ‘Roti Reminder’ for its Lifebouy soap 'What an Idea' thought, turns attention to
brand. marital discord. In the ad, a son swaps his
More than 100 dhabas and hotels at the mela parents' phones so that each spends a day
site served rotis that were stamped with receiving calls meant for the other. By the
“Lifebouy se haath dhoye kya?” end of the day, this 'telephone exchange'
The ‘Roti Reminder’ gets a consumer’s evokes some much needed empathy on the
attention at the exact time when hand part of both partners. Towards the end of the
washing is critical. ad, the words 'Ek doosre ko samajhne ke liye
This simple, clutter-breaking idea helped HUL telephone exchange - What an idea!' serve to
reach out to a massive audience, at a fraction tie the ad back to the brand's long-standing
of the cost. Brilliant promotional strategy! 'What an Idea' umbrella.
THE MARKSMAN .
06
8. Hall-MARK Campaign
a husband waiting for his wife to safely reach
home before he drives away in a taxi. It is
followed by a husband adjusting his seat so
that his wife is shadowed from the sun.
Another instance shows a family waiting at the
railway station late in the night and the father is
holding on his little son’s pant loop so that he
doesn’t wander away. It is continued by
another case where in father at the school
protecting his child from the rebukes of a
headmistress. The TVC ends with a young
husband swapping places with the wife, while
You might have seen, felt and spoken about the
walking on the side of the road, in order to
deeds of a woman, often given credit to a
protect her from oncoming vehicles and the
woman in your life for different roles she plays.
voice over stating, “Jo zimmedari nibhaate hain
Women are often considered symbolism for
who jataate nahin. Unko suraksha dete hain
maternity, caring, love, sacrifice and
hum. ICICI Prudential Life insurance –
selflessness. It is an old saying- ‘After every
Zimmedari ka humsafar,” thus equates the role
successful men there is a hand of woman.’
of a family provider with the insurance brand.
True. But never a word said for men’s caring
ways… it goes unstated. Men do have a caring,
The TVC is based on the insight that
tender side to them, which hardly ever comes
contemporary family men shoulder their
to one’s attention.
responsibilities very well without making a
hullabaloo. The brand stands with such men
ICICI Prudential has taken notice of this, with its
who implicitly take their responsibilities.
latest campaign celebrating the "family man", it
This is often the important and unstated role. It
talks about the Good Men. The commercial
equates the man’s role in family with the role
stands apart from its earlier campaigns, which
of life insurance in one’s life – understated care
have essentially focused on ICICI Prudential's
but important for the family’s well-being.
product features.
The key thought is very sensitive; however, it
could have been taken to the next level by
The four-week campaign has been created by
integrated communication with the support of
Lowe Lintas and Partners. Inspired by real life
other mediums as well.
incidents, the 30-, 60- and 90-second TVC
shows everyday’s simple situations, where men
This ad campaign stands as a Hallmark
in various stages of family life, perform small,
Campaign for the unique thought it propagates
caring acts that are taken for granted. Even the
and the creatives it depicts through small
men do these without getting it noticed.
instances in life– an ad to which everyone
Story Board
would relate.
The film features instances like a father
checking the sturdiness of the plank before he
calls out to his family to join him on a ferry ride;
a husband ensures that his wife doesn’t hurt
her head by the open drawer. The next features
07 FEBRUARY 2013
9. C
O
V
E One-to-one marketing (sometimes anticipating orders, sometimes even before
expressed as 1:1 marketing) is the ability to they walked into the store. They all realized
R customise the communication and offerings that customers can purchase the same
to each individual customer, on the basis of products at the same prices from many
their stated or implied preferences. It is a other retailers. Everything being
customer relationship management (CRM) standardized, the only way they could
S strategy emphasizing personalized differentiate themselves from the
interactions with customers. The competition was in the service area. This is
T personalization of interactions is thought to why they began engaging customers
foster greater customer loyalty and better through interactions, remembering details
O return on marketing investment. about their preferences and characteristics;
A typical one-to-one marketing dialog will and using this knowledge to provide better
R involve the representative service. One-to-one marketing seeks to
or sales person listening to what reinvest marketing with the personal touch
Y the customer requires and then absent from many modern business
proposing services or goods they interactions.
can offer to meet those requirements. So why did the biggest companies turn their
The concept of one-to-one marketing as a backs on a handy and successful tool? One
CRM approach was advanced by Don reason was the post-war customer
Peppers and Martha Rogers in their 1994 sentiments combined with a mass
book, The One to One Future. production strategy. The post war period
was a time of economic growth when
Old wine in a new bottle? customers would clamour for whatever
The term sounds new because it is. goods were available. Additionally, Henry
However, the approach has been used for Ford’s quote - “Any customer can have a car
ages. For years, proprietors of general painted any colour that he wants so long as
stores or Kirana stores as they are called in it is black” summed up the focus
India took care of their customers by manufacturing companies had.
THE MARKSMAN 08
10. COVER STORY
So what’s suddenly changed?
Why do we need 1:1 marketing
now?
Consumers:
“One size fits all” is out-of-date. Consumers are
better educated and informed. They want to be
seen and treated as individuals and are prepared
to pay for it.
Competition:
It is becoming more difficult by the day, to
differentiate products. Almost all products and
substitutes focus on quality, value for money,
durability, etc.
Profitability:
20% of customers provide 80% of your profits.
This means only one thing – Hold on to your loyal
customers and never let go.
Technology advancements:
The launch of 3G and 4G services in India will Differentiate customers on the basis of
usher in possibilities enabling highly- interactive their needs and values to the company
two-way communication with each customer of The core target group mentioned earlier is one
the company. Technology enables companies to that provides the highest margins, concentrate
identify the customer at every touch point — be it on these customers and a healthy profit will
when the customer logs into the web site using a always follow. You also need to concentrate on
customer ID and password, or swipes his credit both existing and new customers at the same
card. Companies need to use the intelligence time. This will ensure that your customer base
residing in such data to push one-to-one is constantly expanding. Using this approach,
marketing. you are differentiating your customers on their
needs and values.
Want to be a one-to-one
marketer? : The Framework Identify prospects and customers
The first thing you need to do is ensure you’re
Interact with individual customers not targeting the mass market blindly, unless
Interaction on an individual level provides three of course the product is a mass-market
prominent benefits. Firstly, it helps build strong product. Instead, break down your population
relationships with the customer – a strong using good-ol’ segmentation. The key is to stay
differentiator. Secondly, a satisfied customer who strong among your core target group while
has directly interacted with the company has a expanding your presence in other groups. This
higher chance of recommending it to his peers. is where one-to-one marketing comes in; you
And lastly, it helps improve knowledge about identify your core target group by interacting
them, understanding their unique requirements with your customers and identify both
and hence customizing the offering. prospective and future customers.
09 FEBRUARY 2013
11. COVER STORY
Customize the product service and
message to each customer
An appropriate example to use would be banks.
They have a large bouquet of financial products.
Each product is designed to target a different
target segment of customers. Everything from
the message conveyed to the core benefit of
the product is customized. For example an
insurance plan that targets a young executive
looking for individual cover as compared to a
married man looking for a family cover.
Popular 1:1 Marketing Front Adidas invented the concept of doing it
yourself. Adidas provided its customers with the
Runners opportunity to design their own Adidas trainers
online to enable them to make a statement with
what they put on their feet. As an added bonus,
they were enrolled into a competition to design
soccer prodigy Lionel Messi’s boots.
Offline 1:1 marketing is exemplified by Tesco,
Amazon pioneered the use of one-to-one which sends out highly personalised coupons for
marketing in software and continues to each category of item sold in its stores and online,
prominently use it to market its products. The which the customers find relevant as these offers
company tracks what customers have searched are for categories or products that the customers
for, clicked on, looked at or purchased. It then buy regularly.
displays products based on this past information
trail. This focused marketing approach lets the
customer know that he or she has been noticed.
Additionally it gives the customer access to the
type of products he or she has expressed interest
in and hence increases purchase probability.
In India, multiple brands like Domino's, Van
Heusen and online travel portals have been
customising offers and deals to each individual
customer. For example, a frequent traveller on the
Mumbai-Chennai sector would find a discount
Another example of direct marketing is that of offer on this sector far more meaningful than one
customized personal computers by Dell on the Mumbai-Delhi sector. Current portals are
Computers. Dell allows the customers to interact designed to employ user information and provide
with Dell via its web site (or off-line for large intelligent and relevant offers that will fuel
corporate orders), to create a unique product and profitable in the long run.
then builds the computer based on it.
THE MARKSMAN 10
12. COVER STORY
Is it just overstated? at the same time, may not be able to afford the
One-to-one marketing is based on the premise expensive variant either.
that the company or marketing team can predict The manner in which products are presented also
what the customer wants before he does. In an affects preferences. When products are shown
article for Stanford Graduate School of Business; together, consumers tend to choose more on
Professor of marketing, Itamar Simonson, opines price than brand. When products are displayed
that these predictions are exaggerated and sequentially, consumers rely more on brand and
overblown.One-to-one marketing would be a less on price. Thus, less expensive products will do
goldmine if customers made clear and consistent better if presented on the store shelf next to more
choices and buying decisions. However, buyers expensive, better-known brands, rather than on
preferences are often fuzzy and unstable; and end-of-aisle displays.
more so, buyers themselves can’t explain their
own buying decisions. Last word
Which leads us to the next obvious question – The advent of the internet, mobile data
Why are preferences so fickle? connectivity and associated tools provide an easy
Preferences are often determined by the options and affordable method to adopt one-to-one
customers are shown and the way in which marketing on a large scale. However, marketers
products are presented. will be ill-advised to assume that simply adopting
Customers frequently don't know the value of one-to-one marketing via the Internet will
products by themselves. They mostly rely on what dramatically change the basic rules of
they see at the mall, i.e. rely on comparisons set competition. Results are likely to be more
up by the retailer to determine if an offer is a impressive if they combine customer knowledge
“good buy”. with an understanding of what influences buyer
Shoppers tend to compromise. Companies provide decisions. A wine seller who not only relies on a
similar products in various price ranges. However, consumer's demographics and purchase history
it is noticed that sales of mid-priced products are but also manages the set of wines presented on a
boosted the most. This is because customers screen or catalogue page is likely to have greater
don’t want to buy the cheapest available item. But success.
11 FEBRUARY 2013
13. S
P
E
Marketing is a war! Competitors fight it out business in several ways. Leaders in both
C in this slugfest to gain the highest market spheres must:
share, to increase their profitability or to • Deal with a world of 24/7 information and
I best meet the customer demands. All our public scrutiny
marketing gurus have always advocated a • Cope with perpetual ambiguity
A customer centric approach. Customer is • Adjust to ever-changing goals
the ultimate decider of the fate of any
L business, or so we are told! If being The Four Strategies
successful was only about delighting the The language of marketing has been
customer, then the market leader simply borrowed from the military. We talk about :
would be the firm that performed the best Defensive marketing: securing competitive
S market research. Clearly, much more is advantage
required! Offensive marketing : protecting competitive
T advantage
Al Ries and Jack Trout, in Marketing Guerrilla marketing : Attack, retreat, hide,
O Warfare argue that the concept of then do it again, and again, until the
customer-oriented philosophy is competitor moves on to other markets
R inadequate. Rather, firms would do better Flanking: (Often overlooked yet one of the
by becoming competitor-oriented. most powerful military strategies)
Y Marketing has always been a battle raging
between the strong, resourceful,
established players and small, ambitious
but innovative firms. Military strategies and
marketing strategies have therefore always
had a common connected thread running
between them.
It seems like every generation of business
leaders has looked to the military for
inspiration and wisdom. The early part of
the 21st century seems no different in this
regard. The military provides a model for
THE MARKSMAN 12
14. SPECIAL STORY
Flanking may be able to capture a significant share of
The military historian B. H. Liddell-Hart, after the total market by concentrating primarily
analyzing battles ranging from the Greek on one large untapped segment. This usually
Wars to World War I, determined that only 6 involves developing product features or
out of 280 victories were the result of a services tailored to the needs and
frontal attack. He concluded that it is usually preferences of the targeted customers,
wiser to avoid attacking an established together with appropriate promotional and
adversary’s point of strength and to focus pricing policies to quickly build selective
instead on an area of weakness in his demand.
defenses. This is the basic premise of
flanking. Japanese auto companies, for instance,
Many marketers ignore the lessons of penetrated the U.S. car market by focusing on
military history and continue to attack the low-price segment, where domestic
competitors "head on," a strategy that manufacturers’ offerings were limited.
seldom works. They should consider flanking. Domestic car manufacturers were relatively
Flanking strategies can be either offensive or unconcerned by this flanking action at first.
defensive: They failed to retaliate very aggressively
because the Japanese were pursuing a
Flanking Attack (offensive) - In business segment they considered to be small and
terms, a flanking attack involves competing unprofitable. History proved them wrong.
in a market segment that the target does not
consider mission critical. The target In some cases, a successful flank attack need
competitor will not be as concerned about not involve unique product features. Instead,
your activities if they occur in market niches a challenger can sometimes meet the special
that it considers peripheral. needs of an untapped segment by providing
Flanking Position (defensive) - This involves specially designed customer services or
the re-deployment of your resources to deter distribution channels. For instance, Apple’s
a flanking attack. You strengthen your flank if iTunes music store has captured more than 5
you think it is vulnerable. The disadvantage percent of the global recorded music market
of this defense is that it can distract you from by offering a convenient (and legal) way for
your primary objective and siphon resources Web-savvy consumers to locate and
away from where they are needed most. download songs for their personal music
libraries.
A Flank attack seeks to avoid direct
confrontations by focusing on market
segments whose needs are not being
satisfied by existing brands and where no
current competitor has a strongly held
position. It is appropriate when the market
can be broken into two or more large
segments, when the leader and/or other
major competitors hold a strong position in
the primary segment, and when no existing
brand fully satisfies the needs of customers
in at least one other segment. A challenger
13 FEBRUARY 2013
15. SPECIAL STORY
Maneuvering Encirclement strategy is the pincer strategy-
Winston Churchill his series entitled “The “Surround then on two extreme sides”.
World Crises” states that maneuver is L’Oreal has been launching innovative
necessary before one group can flank products in the high end market while
another. introducing their simpler versions in the mass
Maneuvering is typical of competition during markets. This strategy has allowed L ‘Oreal to
the early and developing stages of a market. press its competition from both the ends.
Almost every great company establishes
themselves by maneuvering themselves into Deploy your S W AT S
a position where it is considered the best to Secure your
choice for customers.
This maneuverability must also remain a main Flanks
focus of organizations once they mature as A great asset in warfare is possession of
they keep track of the major established SWATS (Superior Weapons and Tactics
segments in the total market. This obsession Systems). Large organizations posses an
with maneuvering can leave new, vulnerable advantage over smaller ones; numerical
flanks in superiority, based on economics of scale, is
the market, which smaller organizations can vital to the rules of engagement, profitability
attack with specialty products and offerings. and competition. The business strategy of
Encirclement competing with scale mirrors what military
Encirclement is an offensive strategy that generals do in combat. As Sun Tzu wrote in
involves targeting several smaller untapped The Art of War, "know the enemy and know
or underdeveloped segments in the market yourself and in a hundred battles you will
simultaneously. never be defeated; when you are ignorant of
In Operation Desert Storm, more than the enemy but know yourself, your chances
100,000 Iraqi troops crossed into Kuwait, of winning or losing are equal; if you are
fixed themselves into strategic positions — in ignorant of both your energy and yourself,
front lines — to combat U.S. General H. you are certain to be defeated." Firms must
Norman Schwarzkopf-led Allied Forces. They thoroughly understand themselves and their
ignored one of the basic rules of defensive competitors through appropriate
warfare — secure the flanks. They lost. environment scanning and market
Military legends like Napoleon, Hannibal, and intelligence.
Julius Caesar have used flanking maneuvers Securing flanks means using multiple SWATS
— surrounding opposing force from two or tools while understanding that some will
more directions, thereby reducing its ability become obsolete with time. Stay paranoid,
to defend itself. stay successful is the mantra after all!
There is a lesson here for business. The idea
is to surround the leader’s brand with a
variety of offerings aimed at several
peripheral segments. This strategy makes
most sense when the market is fragmented
into many different applications segments or
geographical regions with somewhat unique
needs or tastes. A variation of the
THE MARKSMAN 14
16. FEATURED ARTICLES
RIM rebranded to
Blackberry at the
launch of Blackberry
10. Will it work?
Aditya Khajuria, Goa Institute of Management
“When you develop your brand name on a foundation of strategy, consumers don’t only hear,
they listen” - blackcoffee.com
In the middle of all the excitement related to launch of the new BlackBerry 10 phones and
operating system, company also announced that it is dumping its earlier name and it will now be
called “BlackBerry” instead of “Research In Motion.” and the stock will begin trading on the
Nasdaq under the ticker symbol “BBRY” on Feb 4, 2013. BlackBerry has finally aligned the
company name with its primary product around which its strategy revolves, which many analysts
and investors had been urging for long time. When CEO Thorsten Heins announced “We have
reinvented the company, and we want to show that in our brand. From today on we are
BlackBerry everywhere in the world”, it had made important step towards the future of the
company.
Establishing its corporate identity on the basis of its main product, smartphone, is being looked by
brand experts as "brilliant" but also "risky." Many believe that name change was long overdue and
its gives the company chance to reinvent itself. Much depends on how will consumers look at
corporate rebranding and view BlackBerry as a new company. Chances of getting rid of negative
associations that the company has built up over the last few years are bright, as consumers may
come back and give Blackberry chance once more to prove its superiority. BlackBerry already
enjoys global recognition, therefore probability of causing confusion among consumers and
backfiring of this move are slim. But the perception among some consumers that the BlackBerry
brand itself has become out dated and invokes the images of clunky QWERTY keyboards, does
pose certain risk for the success of rebranding.
Future for BlackBerry looks bright and promising, in wake of its recent smart phone launches,
BlackBerry Z10 and BlackBerry Q10, which has again rejuvenated the brand to challenge market
leaders. BlackBerry comes with a new vision, a new attitude and new energy. Company is using
this opportunity to hold events to meet with developers, business partners and customers all
around the world. According to YouGov Brand Index’s Buzz score, BlackBerry has been steadily
improving its position and looks well placed to achieve higher market share. Blackberry, iPhone,
and Galaxy were measured with YouGov Brand Index’s Buzz score. Its finding has shown that the
Blackberry brand has been picking up more positive feedback than negative from consumers since
mid-January 2013, as at the same time Apple’s iPhone’s recent perception is declining.
15 FEBRUARY 2013
17. FEATURED ARTICLES
YouGov Investor View data from April 2012 to
March 2013 shows that 43% of Blackberry
owners were expected to purchase another
Blackberry in Jan-March 2013 as compared to
18% in the quarter April-June 2012. Loyalty for
iPhone owners dropped from 92% to 85% over
the same period, while Galaxy’s improved from
46% to 53%.Therefore, the decision of the
management to rebrand itself towards its rising
smartphone is likely to bring rewards for the
company.
The company is generating buzz for its much
anticipated planned SuperBowl ad. Alicia Keys,
famous American singer and actress, was made
brand’s global creative director. New tagline “One
brand. One promise.” aimed at calling attention to
the company's transition to its new identity and
renewed focus on its products was also introduced.
All these rebranding activities signal opportunity for
the organization to refresh its culture and way of
doing business for its 12,000 employees. Upcoming
times for BlackBerry could represent one of the
greatest revivals in the industry and certainly
BlackBerry has taken step in right direction.
THE MARKSMAN 16
18. REWIND
First Marketing Round Table Conference
SIMSR conducted its
first Marketing
Round Table
Conference on 16th of
Feb, 2013. It was first
of its kind conference
organised bringing
together alike mind
marketing
enthusiasts.
The event began with
the unveiling of logo
of Marketing Round
Table Conference.
The logo depicts the strength of marketing department of SIMSR with a tagline
‘together, moving forward’.
Theme for the Conference: Marketing is evolving faster than ever before. Not
because of technology itself, but because markets and A new generation of brands
are shaping markets customers right now. These new brands are playing a different
game – new rules, new tools – and with more impact. And hence the theme for the
conference- ‘Rethinking Marketing’.
Prof. Isaac Jacob started the conference by giving his
thoughts on ‘Rethinking Marketing’ with the latest trends
in Marketing spot and then followed by each speaker
describing their outlook towards the sphere of discussion.
It then led to the basis for the Round Table Conference
where the topic was discussed, argued, views were
shared and new thoughts were originated.
17 FEBRUARY 2013
19. REWIND
Dr. Bhaskar Das Dharmendra Amit Tripathi
Satapathy
The Conference had well-
regarded speakers –Dr. Bhaskar
Das, Group CEO Zee Mews &
DNA; Dharmendra Satapathy, VP
& Head Marketing Tata Mutual
Funds; Amit Tripathi, MD ID8
Labs. Prof. Isaac Jacob, Marketing
Professor, SIMSR, played a role of
moderator for the conference
discussion. The listeners
encompass of Industry Experts,
Marketing Professors, Alumni,
and students from B-schools.
Takeaways: New perspective on
Marketing and what lies in future
for Brands in area of marketing
was highlighted. Speakers shared
their industrial perspective
thoughts and brought out the
unique way in which marketing
should be reconsidered and
thought upon by the Marketers.
It was a very informative,
interactive session and a great
learning experience for the
listeners.
THE MARKSMAN 18
20. BOOKWORM
The Fall Of
Advertising And
The Rise Of PR
Authors- Al Ries and Laura Ries
This Business Week best-seller by the father-daughter duo Al Ries and
Laura Ries explains the difference between Advertising and PR, which
to a novice would appear as off shoots of one another. But once you
are done with this book, you will never see the two in the same way
again.
"Creativity wins awards, but does it also win sales? To be effective,
advertising doesn't need creativity. It needs credibility." and that is
where PR comes into the picture.
The book draws comparisons between advertising and PR, outlining
the tangible benefits of them both as marketing tools and then goes
on to explain why PR will become a dominant force in brand building
in the future. The biggest strength of this book is the number of real
life examples that have been provided to drive its point forward. The
language used is simple and lucid, keeping the pace of the book fast so
that there is not a single dull moment.
This book will leave a lasting impression on you and is a must read for
all those who want to make a career in Marketing.
19 FEBRUARY 2013
22. BUZZ
The Crossword Across
1. In 1931, this automobile company
was bought by Rolls- Royce secretly
using a company named British Central
equitable Trust. The founder of this
company was called "W.O" and was
known for rotary aero-engines in WWI.
2. The founder of this company received
a patent on his "Lucky Curve" feed that
was incorporated in the product. The
image shows the equation of Martini
which is linked to the company.
3. For which company did Leo Burnett
create this iconic image after WWII,
getting inspiration from an issue of LIFE
magazine.
7. Which ice-cream company was
created by P L Lamba to cater to
The Clues American soldiers who were stationed in
Delhi in WWII. Image shows the earlier
logo of the company.
1. 2. 3.
9. Which company started operations as
"Dandekar & Co." with "Horse Brand"
Ink powders and tablets in 1931? The
company shown in the image currently
owns 51% stake in the company.
Down
4. 5. 6. 4. Which ad agency is responsible for
the Lalitaji campaign? The company is
the acronym of Lever International
Advertising. Major shares are owned by
the company given in the image.
5. The co-founder of which company in
7. 8. 9. an active investor in alternative energy
companies, such as Tesla Motors.
6. The logo of which company is
representative of a light that has 3
crossed tuning fork? The image is the
previous logo of the company.
7.Kwality 8.Rupa 9.Camlin 8. Satyajit Ray, the acclaimed film
Answers maker, had designed the logo of which
4.Lintas 5.Google 6.Yamaha
company for which all he asked for in
1.Bentley 2.Parker 3.Marlboro return were some books?
21 FEBRUARY 2013
23. CALL FOR ARTICLES
FOR MARCH 2013
Articles can be sent on any one of the following topics*:
1. Dettol vs. Vim: The Return of Ad Wars.
2. Youtube now entices Indian Marketers
3. Will themed malls work in a country like India ?
*Please ensure that there is no plagiarism and all references are
clearly mentioned
1. One article can have only one author.
2. Your article should be from 500-600 words and MUST
be replete with relevant pictures that can be used to
enhance your article.
3. Send in your articles in .doc/.docx format with font
size 11 (Arial) to: interface.newsletter@gmail.com
4. Subject Line: Your Name_InstituteName_CourseYear.
5. Kindly name your file as: Your Name_Topic
The best adjudged article will be given a winner's certificate.
Deadline for submission of the articles: 11:59 PM , 16 March
2013.
THE MARKSMAN 22
24. To subscribe to "The Marksman", Follow the link:-
http://interfacesimsr.weebly.com/the-marksman.html
OR drop in a mail/contact us at : interface.newsletter@gmail.com
Subject line: Subscribe: Your Name_Institute Name_Course Year
THE TEAM
COVER STORY SPECIAL STORY It’s all about AD-itude
Keith Mascarenhas Niyati Chamyal Pallavi Srivastava
SquAreheaD Brand MARK ive Hallmark Campaign
Pallavi Srivastava Upveen Tameri Hinal Shah
TWEETS BUZZ BOOKWORM
Upveen Tameri Sujit Mishra Tilottama Sanyal
DESIGN PROMOTIONS
Tilottama Sanyal Vibhav Shukla
Yash Chamaria
Follow us at: Website:
http://www.facebook.com/simsr.interface http://interfacesimsr.weebly.com
23 FEBRUARY 2013