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Marketing Magazine of IIM Shillong Volume 5 | Issu

J u

l y 1 3

Mr Vishal Singh

Associate Professor of Marketing at New York University Stern

School of Business

ShopperMarketing

Consumer

MarketingVs


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Dear Readers,

As the monsoon season sets in and the beautiful rains

capture your imagination, its time to let all your creativity

flow. Most of the readers would be back to college after their

internship stints where they would have excelled with their

innovative ideas and marketing insights. The month gone by

was full of activities and events, some were expected and

some threw us out of our seats. Cannes Lion set the tempo

for the marketers as it was time to reward the brightest

minds in creative communication. Numerous Indian ad

agencies won laurels for their out of box campaigns striking a

chord with the consumers.

P&G, the global FMCG giant came up with its launch of first

toothpaste in India extending the Oral B family. Even in world

of sports, we saw some head turning, jaw dropping moments

like India winning the ICC champions trophy, Djokovic losing

to Murray and the likes. As we celebrate our happiness of

being together, its time to thank our readers who have been

pouring in their thoughts from across the country and

throwing light on the various facets of marketing enriching

our journey with thoughts and ideas that delve deep into the

creative world. We are really thankful to you as you are

equally responsible for the success of our magazine and we

look forward to your feedback as it will only help us geting

better with every edition.

The cover story this month unravels the mystique world of

Shopper Marketing. With consumers not being the typical

shoppers, it was necessary to address the shoppers per se

and communicate with them through in-store campaigns and

initiatives. Its a must read for the budding marketers as it

brings you closer to the latest development in the retail

world. For this months Vartalaap, we get you perspectives of

Mr. Vishal Singh, an Associate Professor of Marketing at New

York University Stern School of Business. He brings in- depth

experience from psychology research and retail competition.

The world of retail is changing rapidly and it is very important

to get hold of consumer psychology to gain competence and

consumer loyalty and this section will enrich you with

knowledge packets from the business guru. For this monthsBook Review section, we get you inside the world of one of

the most powerful brand in this world: Coca Cola via the

journey of its one time CEO Neville Isdell. The book captures

the journey of a man from an entry level employee to the

man at helm calling the shots. Addicted will give you a

thought provoking analysis of two trending ads while updates

section gets you heads up on the recent happenings of the

marketing arena.

We are also proud to unveil the logo of Marketing Club of IIM

Shillong with this edition of Markathon.

So sit back and enjoy!!!! Happy Reading

Happy Reading!

Team Markathon

FROM TEAM MARKATHON

THE MARKATHON TEAM

Editors

Ashok A

Kamalpreet Singh SalujaPallavi

Prateek GauravShashank S. Tomar

Swikruti Panda

Creative DesignersSushree L. Tripathy

Vaibhav Annam


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markathon |july 2013

3

CONTENTS

FEATURED ARTICLES

PERSPECTIVES

CAUSE MARKETING & BRAND ACTIVATIONS 4RICHARD MANICKAM | SIES COLLEGE OF MANAGEMENT STUDIES, MUMBAI

THESE BABIES SELL THEMSELVES - AN UNCONVENTIONAL COMMUNICATION APPROACH 6SUMIT SINHA | DEPARTMENT OF MANAGEMENT STUDIES, IIT MADRAS

VARTALAAP

MR VISHAL SINGH 9 ASSOCIATE PROFESSOR OF MARKETING AT NEW YORK UNIVERSITY STERN SCHOOL OF BUSINESS

COVER STORY

SHOPPER MARKETING VS CONSUMER MARKETING 12SHASHANK AND SWIKRUTI | IIM SHILLONG

EYE 2 EYE IPHONE MINI: MARKET PENETRATION OR BRAND DILUTION? 18SHIVAM SHEKHAR | MDI GURGAON; HRIDAY BIKASH DAS | IIM SHILLONG

SILENT VOICENJOY E-CIGAR

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SPECIALS

ADDICTED SWIKRUTI PANDA & SUSHREE TRIPATHY | IIM SHILLONG

20

BOOKMARK

PALLAVI | IIM SHILLONG 21

RADICAL THOUGHTS ASHOK A | IIM SHILLONG

22

UPDATES 23

PRATEEK | IIM SHILLONG

MARKETING CLUB LOGO 25

PICTUREPAGE 26


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Purpose

Picture source: Edelman Research Report

Richard ManickamSIES College of Management Studies, Mumbai

Does your work actually make a difference to anyone?Does your job profile include bringing a smile back to aface that has been long lost in this world? Does yourcampaign possess a Cause that has the power to bringabout a Change apart from Brand Recall and SalesFigures? Do your brand activations actually connect atthe ground level with your Consumers emotions?

These are exactly the same questions that arise in themind of a Cause Marketer. About contributing andadding towards building positive human relations.

The term Cause Marketing was first coined byAmerican Express in 1983 for the Statue of LibertyRestoration Project. The 3 month campaign raised closeto $ 2 million and the American Express card use rose

27%. India has seen significant Brand Activations inrecent past through Cause related campaigns. AircelsSave our Tiger where you could donate funds for WWFCampaigns or Tata Teas Jaago Re in which it wasestimated that 6.5 Lakh Indians used the platform toregister as voters thereby creating a widespread socialawakening.

On similar lines is the ongoing campaign of I LEADINDIA a Times of India initiative in association withMaruti Suzuki is an activist program. It seeks to mobilizethe youth in the 18-24 age group and make them agentsof change at the grass-root level.

The cause here is to make a difference in the society bybeing the change in the society and stop pointingfingers.

The consumer psychology about Cause marketing is wellbrought out by insights that the Edelman ResearchReport has captured. 82% respondents believe thatsupporting a good cause makes them feel better aboutthemselves and nearly 50% said that Social Cause

ranks higher than Brand Loyalty, Design andInnovation as a Purchase Motivator.

Coca Cola a brand that resonates with happiness isactively engaged in Cause Marketing. The brand cameup with its campaign-Happiness without Borders. Itinvited the people of India and Pakistan, sharing aturbulent relationship, to share a simple moment of connection and joy through its Hi-Tech VendingMachines. The vending machines aptly called as theSmall world Machines brought together humanemotions by displaying real time action and initiating joyful interaction.

Brand Activations form an important part of this CauseMarketing in bringing the consumers emotions directly

Feel Good

perspective markathon|july 2013

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Sumit SinhaDepartment of Management Studies, IIT Madras

Is advertisement, the trump card for the Indian giantfirms to communicate their brand? Rather, can therebe a way to communicate a product or service without

advertisement? This article will discuss this unorthodoxmarketing strategy along with its implementation sothat we could try and find out, Is there any way, that could help reducing the advertisement expenses from

the company s income statement ?

Let us first look at the data that we aredealing with. Indian companies spendroughly around $17.14 billion onadvertising every year, including

online advertising, outdoors, andsocial media. This massive amountcan fund roughly five 1000 MWnuclear power plants per year inIndia. This Media and entertainmentIndustry is expected to grow at aCAGR of 15% over the next five years.(Source : Economic Times )

But how was this trend started? The history of

advertisement takes us 4000 years back when in 2000BCE, the Egyptians started carving out names of theirshops on stone. This was the first time when a vendorcried out to introduce his brand. The realadvertisement, what we see today, started from theyear 1631, when for the first time La Gazettenewspaper printed a classified ad. The emergingtechnology started giving birth to various media foradvertisements. We had radio ads, televisioncommercials (TVC), direct selling and what not? Then

came the online ads, which were backed up withbulging e-commerce industry. After the launch of Google in 2004, it was clear that dotcoms could also

earn massive amount of revenue, without even sellingor buying any item. Googles revenue model is basedmajorly on online advertisements, which is now valuedat around $23 billion.

The evolution of advertisements took a rapid paceafter the 19 th century because the industry

was able to get enormous customerbase and ultimately earning more

profits due to these

communication methods.Meanwhile there were few bigbrands that did not advertise at all.They never budgeted a single

penny on ads and other Above theLine (ATL) activities. And yet they

earned huge amount of profits, and arefamous! You think its not possible? Read

on for a major paradigm shift.

Think of a brand, a giant from Italy, famous for itscutting-edge automotive engineering and photonicspeed of its product. Ring any bells? Ok, what if I saytangy red? Yeah! Its Ferrari! Ferrari has set up a hugeempire, a huge name all without any glossyadvertisements, flashy outdoors and even without anyvanity fairs. People buy Ferrari because they arepassionate about the car, the technology, the speedand most of all, the Ferrari as a brand. The onlypromotion activity Ferrari enjoys is word of mouth,

These Babies Sell Themselves


An Unconventional Communication Approach

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and this base is growing wider on social media. In anarticle by Terry OReilly, he poses a question,

How does the management in Ferrari measure theeffectiveness of this unorthodox strategy?

The answer is simple,

They sell every car they make!

Other examples at a global front include Costco, TheBody Shop, Ben & Jerrys, Zappos etc. These are fewbrands that have not spent significant money onadvertising. They have made their brand so popular,

their product so distinguished that consumers are crazyabout them. Lets come to India. Nalli Silk Sarees is a $100 millionChennai based Sari retail chain. According to LavanyaNalli (LiveMint, Aug 26, 2011) Brand Nalli, which is an

84-year-old legacy, is growing at a rate of 12%; morethan the market average. Yet they have never activelyspent any penny on the brand promotion. Noadvertisements, no sales promotion, no events or PR.Lavanya, a HBS graduate still feels that there is hugeamount of demand from Indian market, which theyneed to satisfy in order to grow the business. If abusinessman (businesswomen in this case) is gettingdrift of such voluminous demands, then spending onads is like burning money. Shahnaz Herbal Inc., a 30-year-old beauty brand has not spent anything inadvertisements either. In an interview done with India-Africa Connect, Shahnaz Hussain said, I specialize inchemicals, not advertising at all .


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She also quoted,

If the Americans and the British say it's amaz ing, this

itself is the biggest publicity for the product .

What do the above two cases infer? Looking at thepositioning, it can be concluded that these brands havemade themselves so strong and their product sospecial, that the customers are attracted by theproducts technical & functional quality itself. Let us tryto plot the above-mentioned brands in the followingCredibility Visibility chart (CVC):

All the above-mentioned companies have placedthemselves at the top right quadrant of the chart. Thisshows that their credibility as well as visibility isextremely high which gives an unparalleled positioningof the brand in the consumers minds. So, firms entireplans for an unconventional strategy of communicationshould focus on bringing the brand from unknown orundiscovered state to the unparalleled state. Pleasenote, here the visibility does not stand for thecommunication of the brand, but its a mere notion toexpose the brand more to the consumer. But the

question now arises is, how? Well, increasing thecredibility of the product is not something what firmscant control. The motive is to give a high value packageto the customer that could do the following tasks.

Distinguish

A good positioning says it all. Brands are not expectedto communicate the positioning. A product must bedesigned in such a manner that a customer should be

able to locate the product in a specific space in theirminds, far ahead of their competitors.

Price exclusivity

Offering more value in the product on same or lessprice than the competitor gives an extra edge to yourbrand over others. This way the brand can be furtherdistinguished on the basis of price exclusivity.

It is advisable that the strategies, briefesd above shouldbe deployed at the New Product Development (NPD)

phase itself. The reason is, that adding value to theproduct in the later product life cycle stages can provecostly.

So it can be concluded that focusing on the correctplacement of the brand can help it grow and make agood impression in customers mind . The mainadvantage of this approach is that all the efforts andexpenditure on the marketing activities can be easilytracked and further changes can be done in the

strategy to get the desired results. We all know theloyalty is not made on the basis of cool TVCs orhilarious print ads, but it is as a result of the highquality. And loyalty is what modern businesses cravefor, right? Imagine, if all the firms start working likethis, then what will happen to the 4000 year old legacyof advertising?

Well , thats worth a thought!


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cover story | markathon|month 2013

10

vartalaap markathon|january 2013

An Interview with Vishal Singh

Associate Professor of Marketing at New York University Stern School of Business

vartalaap markathon|july 2013

Mr. Vishal Singh is an Associate Professor of Marketing at New York University Stern School of Business. Before joining NYU Stern, Professor Singh was Assistant Professor of Marketing at theTepper School of Business, Carnegie Mellon University, where he won the Bachelor of Science inBusiness Administration Teaching Award for outstanding teaching. Professor Singh's researchfocuses on retail competition, competitive pricing, store brands, database marketing and empiricalindustrial organization. He has published articles in several scholarly journals including MarketingScience, Journal of Marketing Research, and Quantitative Marketing and Economics. ProfessorSingh received his Ph.D. in Marketing from Northwestern University's Kellogg School of Management in 2003. In this exclusive interview with Markathon, he shares with us some valuableinsights on the current trends in marketing and leaves us with a prized advice.

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As Hal Varian (a terrific

economist atBerkeley/Google) says,

Data are widelyavailable; what is scarceis the ability to extractwisdom from them.

In todays world, Marketing requiresa combination of analytical skills and

intuition. It is both an art and

science.

Markathon: With years of in-depth work in the fieldof psychological research, what hasbeen the most interestinginference you have come across?

Mr Singh: My own research intopsychology is rather nascent. Ihave always been interestedin philosophy but more as ahobby than a profession. Theinsights provided by ancientphilosophers are quiteprofound considering thetime they were putting theideas down. A particularlyinteresting period for me is the so

called Axial Age, roughly fewhundred years BC. This was a periodof genuine novel ideas across theglobe in asking fundamentalquestions of human existence.Consider Buddhism/Jainism inSouth Asia, Confucianism inChina, and trio of Socrates,Plato, and Aristotle in Greece;and of course the OldTestament little before. Modernpsychology offers numerous interesting insights, but if you look carefully, a lot of it is reiteration of old ideasbut tested in what we call a scientific method.

Markathon: In view of the increased competitivenessin the retail segment over the last few years, how doyou think retailers can achieve a balance between

maintaining profitability and ensuring consumerwelfare? Do you see a gradual shift from pricecompetition to brand wars?

Mr Singh: I dont thinkretailers, or anycorporation for thatmatter, necessarily caresabout consumer welfareper se. The objectives are

well defined, as I am sureall of you are taught, tomaximize profits or

shareholder value. Of course maximizing customersatisfaction/equity (or welfare if you

want to call it that) is one way of achieving those goals. But it is

important not to confusemeans (customer

satisfaction/welfare) withends (profits).

Markathon: Today whenbig data is a buzz and

organizations are spendingmore and more in

accumulating it, what accordingto you should be the focus to make

best out of the spend?

Mr Singh: We are living in an era of what is termed as big data. In

every aspect of our daily lives,from the way we work, shop,communicate, or socialize;we are both consuming andcreating vast amounts of

information. More oftenthan not, these daily activities create a trail of digitized data that is being stored, mined, andanalyzed by firms hoping to create valuable businessintelligence. However, much of the promises of suchdata-driven policies have failed to materialize becausemanagers find it difficult to translate data intoactionable strategies. As Hal Varian (a terrificeconomist at Berkeley/Google) says, Data are widelyavailable; what is scarce is the ability to extract

wisdom from them.

Markathon: Do youthink analytics frommarket researchactivities is curtailingthe creativity thatforms the basis of the

art of marketing?

Mr Singh: Notnecessarily. You can be


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The problem is that students often shyaway from anything remotely outside of

their chosen specialization, which I think isa mistake in the long run. You cant be a

good marketing manager without at leasta working knowledge of other facets of

your business.

quite creative in executing analytical skills just likedeveloping a clever ad campaign. Marketing, unlikesay Finance, used to be regarded as a soft businessfield. But it is no longer the case. In todays world,Marketing requires a combination of analytical skillsand intuition. It is both an art and science.

Markathon: Can you share with our readers someinsights on the techniques that help in gaugingmarketing effectiveness such as customer analysis,choice modeling,competitoranalysis etc.?

Mr Singh: Businessis an applied field.For the most partwe are borrowingtools or techniquesfrom basicdisciplines such asStatistics,Economics, andPsychology. There

is no single methodor technique thatone can master.Even topics youmention, customeror competitiveanalysis or choicemodels, need to betweaked andapplied differently

based on theproblem at hand.

Markathon: How do you think brands shouldcustomize their marketing mix to adapt to the fastevolving digital economy of the time?

Mr Singh: Branding in general requires maintaining aglobal positioning or image. The other marketing mix,say pricing or communication and advertising can becustomized to cater to narrower segments. Think of marketing mix strategies of a global brand and the

customization required as you enter different marketswith its own set customer psychology, competitivesituation, regulations and so forth. What digitalmarketing allows is to apply similar principles tocustomize business tactics to increasingly finesegments or even segments of one. Of course all this

needs to be done with care and by being compatiblewith your global brand image.

Markathon: What is your one piece of advice to allthe budding

marketingaspirants followingMarkathon?

Mr Singh: We livein a world of specializations andmajors such as

Finance,Marketing, and soon. Within eachfield are furtherspecializations -

Investmentbanking, corporatefinance,

advertising,market researchetc. This makesperfect sense incore sciences suchas Physics orBiology that get

highly technical.Business world and business schools have adopted asimilar approach, which at times arecounterproductive. Of course a marketing and hedgefund manager will have different sets of skills andexpertise. The problem is that students often shyaway from anything remotely outside of their chosenspecialization, which I think is a mistake in the longrun. You cant be a good marketing manager withoutat least a working knowledge of other facets of yourbusiness.


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cover story | Shopper Marketing vs. Consumer Marketing markathon|july 2013

Shashank | Swikruti | IIM Shillong

Cover Story

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Consumers are the ones who use or experience theproduct, even though they might not be the onespurchasing the product. However, the one purchasingthe product is the shopper, who may or may notconsume the product. Consumer side is an individual'sself-perception and attitude, while the shopper side

represents his buying behaviour.

Shoppers & consumers have a fundamental differencein their relationships with brands. What a consumerthinks and feels and what the same consumerultimately buys as a shopper can be completelydifferent. Most pre-storedecisions of consumers arebrand driven: the shopperhas purchased the product

in the past and willcontinue to do so in thefuture. However, in-storedecisions aremostly based onperceived value,merchandising,and packaging.

Though consumers are often brand loyal, they may

turn promiscuous while making the purchase decision,and this opens up a critical opportunity for marketersto influence the purchase decision.

Stated in simple terms, Shopper marketing meansunderstanding how consumers behave as shoppers indifferent channels and formats, and impact thepurchase decision of shoppers. It entails thinking of the in-store experience as a media channel. Thus, itcould mean anything from integration into an in-

store shopping phone app to an end-of-the-aisledisplay or a program on Walmart TV.

Shopper marketing is driven by the attitudesthat shoppers have towards the shoppingexperience and factors that create shopper'sloyalty to a brand after purchase from achannel. Among other things, it requires anunderstanding of which packaging stands outand works best for the shopper, whichcolours grab attention, what kind of compulsion, education or demonstration doesthe merchandising do, what cost of an end-aisledisplay or window is acceptable, which trip

patterns does the shopper usually take. Thus,successful shopper marketers can be expected to turnup from individuals having a mix of experiences insales, trade marketing and brand management.

While consumer marketing focusses on how, when,where and why consumers use the product; shoppermarketing focusses on these aspects as consumerbuys/shops for the product. Consumer marketingfocusses on Marketing Communications, whereasShopper marketing focusses on in-store purchasedecision influence. Consumer marketing tends to be

more strategic in naturewhile Shopper marketingtends to be more tactical.

An integrated approachtowards consumer insightsand shopper insights canhelp build a real robustconsumer advocacy for thebrand in its category postthe first moment of truth(shelf) and the second

moment of truth(experience).

Though traditional mind-set influences us to believethat shopper marketing is an extension of trademarketing, the truth is way different. Shoppermarketing is revolutionary because it is not merely anevolution of or a new name for promotions, butrather an integration of consumer marketing, trademarketing and consumer promotions.

Within Consumer Packaged Goods, the shoppermarketing activity is most pronounced in

high spend categories like soft drinks,laundry, home care products, cereals andconvenience foods. However, ShopperMarketing is not merely limited toConsumer Packages Goods. Shopper

marketing is permeating many otherproduct categories from consumerelectronics to consumer durables.

Shopper marketing in automo biles,though currently at a nascent stage, is

picking up fast as marketers increasinglyunderstand the primacy of in-store experience


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Incubating Stage

Scaling Stage

Embedding Stage

in automobile purchase decisions.

Why is Shopper Marketing required?

A Booz & Company research says that more than half of brand choices in many categories are made instore. In certain categories, a large proportion of the

target audience may never realise or notice anymarketing element for a brand beyond store walls.Thus, we need to improve the balancebetween demographic,psychographic, and behaviouralresearch.

Shopper marketing helps ingetting people to shop at aspecific channel and inspiring

them to buy more of a brand.The intersection of insights onshopper's trip mission andconsumer's consumption occasionscreates chances to connect with buyerand drive sales.

A huge increase in the number of private label brandsthat strive on stimulus generalization has also causedan increase in attention towards shopper marketing.

In the past decades, the ATL advertisement to in-storespending ratio was skewed towards ATL advertising.With increasing consolidation and sophistication inthe retail industry, and increasing clutter of brands inproduct categories, the balance of power is shifting inthe direction of in-store expenditure.

Shopper Marketing lifecycle:

Shopper marketing lifecycle claims to orient all the

actions being driven and guided by consumerpsychology. Themarketing stimuli arecarefully designed byunderstanding theconsumer behaviour. TheShopper marketing has alifecycle through which itevolves to finally getingrained in the DNA of

the front end activity of an organization. Shoppermarketing if

implemented with clearly defined goals for the firm,the initiative has the potential of bringing in adistinctive brand identity in the minds of the target;enhance better relation with the retailers by helpingthem with consumer analytics and their implications.Shopper marketing also brings about a kind of

coherence in the brand communication both in thestore and outside as well which in the long run goes

on to create strong consumer loyalty.The solutions developed hence, if

increase the sales then the retailersare also in a win- win

collaboration with the firm. Theprocess also leads to lesseningof out-of-stock penalties forthe firm causing through moreprecise forecasting. Larger

inflow of consumer insightskeeps a buffer of effective ideas

that can be worked on to bridgethe subtle and enable quicker and

successful product introductions.

Now delving deep into all the stages of the Shoppermarketing lifecycle, the entire process can be dividedinto three main phases based on the amount of effort

put in and the impact created.

The first among all being the incubating stage, wherein the investment is needed to ensure the basiccapabilities. At this stage, people from differentfunctionalities are roped in. At this stage qualitativeassessment is possible, but quantitative impactanalysis is not that feasible. So, at this stage ad-hocfunding from various teams creates struggle betweenthe brand management, category management and

sales. But majority of firms at this stage of development are able toreap not more than 5-10% of total benefits. Lackof ownership or lack of sincere commitment andbelief in the possibleresults of this newinitiative are some of thehindering mindsets.

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Next in the development process is scaling. In thiseffort is made mainly to transform the incubatedpractices into sustainable strategies. At this stage,capabilities are such developed that robust metricsare in place to give the exact quantitative analysis of reach, conversion and ROI using scorecard approach.

This kind of assessment helps in doing away with allsorts of misbelief in the potential of this approach ingiving all the brands a leg-up among the clutter. About50% of firms are in the scaling stage and theirperformance has fetched them still only 25% of theentire potential of the expansion.

Final stage in the development is that of embedding the sameculturally in the firms

culture. In this stageafter having tested theimpact and scalabilityfinally efforts are made togain significant marginsand strategic advantageover others. Insights fromthis cultural adaptation getploughed back at the product developmentstage and the processes are standardized toaccommodate shopper marketing in theoverall marketing mix.

Importance of Collaboration:

A fruitful shopper marketing plan cannot survive andthrive in silo. The collaboration betweenmanufacturers and retailers is indispensable. Amanufacturer cannot gauge the insights from thecustomers side unless the retailer sees benefits insharing the customer data. And the retailers cannotbenefit by cooperating in the shopper marketinginitiatives unless they work fairly with their partners.There are several characteristic parameters on whichthe conflict of interest has prevailed between the

retailers and the manufacturers like measuring anddemonstrating the results. This is of paramount

importance formanufacturers so that they

are able to gauge thereturns on their investmentson the go. When it comes tocollecting and deliveringshopper insights also, it istough to convince the retailer

about the mutual benefitsand the efforts worth making. As far

as identifying and addressing the emerging trends isconcerned both manufacturers and retailers give dueimportance to the fact but still there is a lot to bedone on both sides to bring in effectiveness of the

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process.

The customer segmentation models need to betranslated effectively. As far as the manufacturers areconcerned, they have ensured good result oriented

endeavors but the retailers are far behind achievingeffectiveness of the implemented practices. Themanufacturers are in a deadlock as the retailersexpect metrics of impact of each and every shoppermarketing practice that they are asked to deploy. Toshow the reflections overnight is not pragmatic on themanufacturers part. Moreover, the retailers areskeptic about cross-store or cross-categorycollaborations. And when it comes to the other side of the story, the retailers shun these new initiatives as

the same older practice with a new tag and do not seemuch of value in the same. They criticize themanufacturers on being prejudiced on thepropositions that they makerather than some innovativeidea that they want toventure the market withand end up only seekingdata to support their say.

The relationship betweenthe manufacturers and theretailers may fall into twocategories: transactional orcommitted. The committedrelationship is one in whichboth parties benefit and co-develop constructive ideas. The transactional is one inwhich benefits are least probable for long run andmay call for defection of the partners. The classical

method to explain this difference in behavior isPrisoners dilemma. In this case both the parties tryto play safe by fearing too much of transparency could

prove fatal for them. The data shared with partner if gets leaked to competitors may cause huge damage.And to overcome the risk in the short-term keeping insight the paybacks in the long run, it takes utter trustbetween the partners in the form of symbioticrelationship between both through shopper

marketing. The pragmatism of the idea of wadingthrough short-term risks to gain in long term is verymuch apparent in the Preparedness campaign byWalmart and P&G, where-in they encourage theconsumers to stock up cold/cough solutions, as theywere earlier losing these sales to the chemists locallysituated. No doubt the campaign was bang on and itdid set the revenue boxes ringing louder.

Digital Shopper Marketing:

The digital shopper marketing offers a foray of services that essentially give a feeling of not justsaving on time and cost. This channel has thepotential of providing the esteemed shopper of beingsmarter and making his/her wholesome experiences alot more satiating. Kelloggs Share Your Breakfa stProgram was an instant hit as it facilitated anotheraspect of aligning with the value system of theshoppers. PR drivers and utility drivers also need to be

balanced. The location based check-ins has providedgood public relations opportunity to many brands.

It is very important tounderstand if theinitiatives adopted on abig scale are reallyshopper motivators. Forinstance QR codes do notmotivate the consumers

to indulge and reveal theirpreferences better to becaptured and leveragedby the advocates of shopper marketing. Tocite a few, Warby Parker,the eyeglass retailer has

tried to transform the brick and mortar store into aliving and breathing website. By such an adaptation,the retailer is creating an ecosystem where the

shopper is delighted to shop almost all the itemsonline. And the retailer himself gets a chance tointeract in person with each shopper. The concept of

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Magic Mirror is also a brilliant attempt in this channel.In this, the shopper gets to try on stuff virtually and if need be, can have the experience sent over e-mail.This kind of interaction records the entire shoppersin-store experience and provides brilliant food for themanufacturer to analyse and get cues and deploy the

inferences to best interest of both the partners.

Pioneering Acts of Shopper Marketing:

P&G haspioneered

the act of Shopper

marketingby adapting

and ingrainingthe culture of Store Back to the core of its culture.

They have developed the concept of Store backmore as a mindset to attain their business goals. Asystematic mode of capturing the First Moment of Truth if could be scaled up at an organization level,then for an FMCG giant Store Back was a leap ahead.The traditional mode was to start with the designingof the campaign keeping all the channels of ATLpromotion in mind and later trying to tailor it to

capture the consumer attention in-store. P&G heredefers from the rest to be the first one to consider thestores first. They have also pioneered the fact that,stores are the real torture tests for any campaign. If itdoes not work in the store, it is way too optimistic toexpect it to work at all. Such a policy is also beneficialfor the retailers as the outcomes are bound to end upbestowing greater attention to the end-customers.

A more logical justification for allocating lot of

intelligence into the process is that, say a TVC willspend nearly 30 sections to get achance to register a product in thetarget audiences mind and fall inhis/her range of consideration. Asopposite to this, in shoppermarketing 30 seconds get reduced to3, with an even bigger stake i.e thepurchasing decision of the customer.Be it the simplified message of 1

pack = 1 Vaccine on Pampers orLove at first sniff on Duncan, P&Ghas successfully nailed it. Relevant P-

O-P material or facilitation of connection between ashopper to what is communicated to him through theconventional ATL media, they really are veryimportant especially for categories that are confusingand that come in several SKUs.

Hence, the wave of Shopper Marketing is the next bigthing all set to engulf all the manufacturers andretailers and its time they shed the fear and take theshort term risks head- on that come along ShopperMarketing and lead the bandwagon before they areforced to join it when it is tough to catch up.

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Shivam ShekharMDI Gurgaon

Topic for the next issue Eye to Eye: Lok Sabha election 2014: Social media followers a potential votebank or just a virtual army?

Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 26th July,2013. Include your picture (JPEG format) with the entry.

Hriday B. DasIIM Shillong

Today in the age of fight for higher sales, there is anepidemic of premium brands stooping low to cater to

the burgeoning middle class

customer base, specifically of the emerging economies.Volkswagens Polo andVento, Blackberrys BBMphones and recently theMercedes entering the AClass. These brands aremissing the wood for thetrees, hardly realizing thatthis transient growth in sales

will have a colossal effect on the image of the brand.In 1980s, Pierre Cardin (a haute couture brand) washit with a jolt when Pierre Cardin started appearing onCaps, cigarettes, thus hurting the luxury status. TheCase with Iphone mini is very much the same, Apple istrying to make a mark in the fastest growing segmentof the society and may be later help them straddle tohigh end products of Apple, this concept is calledFirewalling, where a premium brand brings its ownproduct in lower category to stave off othercompetitors from stealing part of its pie (Barbie fromMattel did the same thing to ward off other low costplayers).

It is important to understand that IPHONE resonateswith STATUS, PREMIUM and this attempt willsend all this for a toss and bring it from premium toeconomy segment, thus IPHONE will no more beaspirational. Having said this, it does not mean that

Apple should leave this high potential growingsegment but it should come with a new brand (For eg.Gold Plus is economy spin off from Tanishq and so is

Ginger Hotels from Taj) in thiscategory instead of using

IPHONE as an endorsedbrand thus repeating the

mistake that Pierre Cardindid three decades back.

Beginning of this year, reports started pouring inabout a possible la unch of a cheap iPhone, a hugedebate started: whether Apple

should or shouldnt venture intolow cost smartphones. A brandfamous for iconic products andinnovation, considered aspremium and aspirational,question is why such a decision?A look into statistics by Gartner(May 2013), Apple has steadilylost its market share, worldover,both in smart phones and also OS wise, from 22.5% in

2012Q1 to 18.2% in 2013Q1. Reasons are many,starting with the saturation of premium market, nobig recent launches by Apple and lately, growth hasshifted towards emerging markets like India and Chinawhere, in general, consumers cannot afford highpriced phones. Critics of this move are of view that itsagainst Apples existing strategy which will lead tobrand dilution and dropping of margins. Butconsidering the condition and looking at future, themove is a good move. All these years, by beingbranded as a premium category product, Applemissed out the growth of the other segment. Itsdecision to introduce smartphones below $200 willsurely lead to erosion of margins, but positives are,itll also have share in emerging markets where salesby numbers will ensure that it has healthy profits.

Apples strength is its brand and in the past it hasbeen successful in innovatively branding of itsproduct. For the present, Apple will surely live up toits image and come up with its own unique way toensure that dilution doesnt happen. Examples areavailable where in products have failed while goingfor extensions, bu t thats a challenge for Apple. Greatness of a company lies in overcoming challengesand coming out with offerings which are unique.Apple has been doing all these years and will continuedoing that.

iPhoneresonateswithstatus,premiumandthisattemptwillbringitfrom premium toeconomysegment

Iti

s aainst A

les existin strate

whichwill leadtobranddilutionanddro

in o marins

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war zone | eye 2 eye markathon|july 2013


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NEXT THEME FOR SILENT VOICE:Coca Cola 150th year Special Limited Edition LAST DATE OF SENDING THE PRINT AD:26 th July, 2013

EMAIL ID: [email protected]

Send your entry in JPEG format named as SilentVoice__only

This time we will follow this rule: 30 % weightage will be given to the popularity of your print ad onFacebook We will upload your entries from 22nd July; send the respective link to you; you need to

share your entry and get as many likes as possible for the same before 6 AM on 29 th JULY

Remember, only creative and whacky stuff sells on Facebook !! And prize money is Rs 1000

Silent VoiceLAST MONTHS RESULTS

Theme: NJOY e-cigarette

WINNER: Pankush Kapoor and Saurabh Kumar

NIRMA UniversityCongratulations!!! Pankush and Saurabh receive a cash prize of Rs 500!

war zone | silent voice markathon|july 2013

19

Bitheka Jena | NIT
mailto:[email protected]:[email protected]:[email protected]


20/28

PRODUCT: Garnier Pure Active

POSITIONING: No pimples No marks

CREATIVE AGENCY: Foxymoron

YouTube Link:

Ad-dicted

https://www.youtube.com/watch?v=abR5OvwagN8

PRODUCT:ITC Classmate

POSITIONING: Because you are one of a kind

specials | ADdicted markathon | july 2013

Sushree tripathy | IIM S Swikruti panda | iim s

CONCEPT:

The ad has been articulated targeting the college goingyouth. The ad features Alia Bhatt cribbing over variousissues faced by a teenage girl like pressure of studies,turmoil in love life and most importantly pimples thatpose a severe threat to her looks and personality. The adfurther unveils the specific cause the product issupposed to serve i.e. marks that are left after thepimple heals. Then the product is flashed. Finally, theproduct blesses Alia with an absolutely clean skin andeveryone around is shown to be in state of awe as No

marks, no marks hums in the back g round.VERDICT:

Catch/Miss- Miss

It is a smart move by Garnier to make Alia Bhatt the faceof a product that targets mainly the college goingstudents. But merely a relevant face will no more do

justice, as today the face that sells, often endorses manyproducts in the same product category. So, in face of the

creative ads that Maybelline comes up by taking Alia onboard, Garnier has gone belly up. Merely pitching forgreat skin is clichd. Audience will get a glimpse of Aliaand be grateful to Garnier for fetching them the same. If you ask them to make a purchase under the influence,they would not shy away to cut a sorry figure. It is hightime Garnier realizes that it is important to designcampaigns that will engrave Alia with Garnier in theminds of the target and for that, a strong theme or storyline is indispensable.

CREATIVE AGENCY: Rediffusion-Y&R

YouTube Link:

http://www.youtube.com/watch?v=RAMukaV1qAA

CONCEPT:

Taking forward their campaign, Because you are one of

a kind, ITC Classmate has attempted to associate thebrand with the powerful insight of children taking theirinitial steps towards expression of their individuality. The60 second ad film shows a 10 year old girl Tara, living inthe hills of North-East India secretly writing something ina book across different settings. After many rounds of secret iterations, she finally draws inspiration from aswirl of ribbons flying during a local festival and makesanother entry in her book. As she shows it to hergrandfather, it is revealed that Tara had been trying tocreate her unique signature using her ITC Classmate penall along and that she finally had.

VERDICT:

Catch/Miss - Catch

The ad beautifully captures the powerful simplicity of achilds endeavor towards his earliest expression of identity through the creative portrayal of a Dastkhat or

signature. It captures the sense of empowerment thatchildren approaching their teens feel when they startusing pens for the first time in school and secretlyattempt to create their signature. The production unit iscommendable with an endearing cast, music track and aNorth Eastern bend that gives it a fresh appeal breakingthrough the clichd visuals of schools and corridors. Arevolutionary idea that transcends cultures, it positionsthe brand as a trusted and honest companion in theminds of their target audience at this phase of their life.

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https://www.youtube.com/watch?v=abR5OvwagN8http://www.youtube.com/watch?v=RAMukaV1qAAhttp://www.youtube.com/watch?v=RAMukaV1qAAhttps://www.youtube.com/watch?v=abR5OvwagN8


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INSIDE COCA-COLAA CEOs life story of building the worlds most popular brand

-Neville Isdell with David Beasley

Review by Pallavi

Price Rs.389

I have a belief system that when the Good Lord created the world, he created Coke one and Pepsi number two.

That is Neville Isdell for you, pulled out of retirement in2004 to lead Coca Cola as the CEO in the most turbulenttimes in the history of the company.

Inside Coca-Cola is the first book by any CEO of Coca -

Cola opens a window to the personal and professional lifeof Nisdell which can be appropriately dubbed as a globe-trotting story, starting from Northern Ireland to SouthAfrica to Australia, the Philippines, Russia, Germany, India,South Africa and Turkey.

Summary

The book chronicles Neville Isdells journey of 30 years as akey player at Coca Cola which started at a coke bottlingplant in Zambia and culminated as its CEO in Atlanta.

Born in Ireland but brought up in Africa, Isdell is clearlypassionate about Africa and its people, be it protestingagainst apartheid as a student at Cape Town University orappointing South Africas first black sales manager, hereveals his sensitivity and compassion and also a hint of the business acumen that would take him places in thecoming years.

Rugby was another passion he lived by, an inextricablepart of the world of Isdells youth. He also goes on todescribe how his rugby skills won over the Afrikanersmanagers who resented an "Englishman" heading the

Coca-Cola bottling operations in South Africa.

The book describes not only the business challenges thatIsdell faced on his climb up the companys ladder but alsothe challenges he faced in operating in various foreigncultures wi th cokes turnaround in Philippines being agreat example.

Isdell retired as head of Coca-Cola Hellenic Bottling Co. in2001. By then, Coca-Cola was struggling, having been ledby several unsuccessful CEOs after the untimely death of legendary Coke CEO Roberto Goizueta. Its earnings and

stock price were depressed and it was reeling from whatIsdell describes as a culture of arrogance. It was thenthat he was called to the rescue of the company in 2004.

Using the manifesto of growth built on five principles of People, Product, Partners, Planet, Profits, Isdell wassuccessful at the task at hand yet again, leaving behind aremarkable legacy of knowledge and accomplishment.

The final chapter in the book highlights his continuingefforts to help make the world a better place throughwhat he calls "Connected Capitalism - a true marriagebetween government, nonprofits, and global corporationsto fight disease and poverty, heal the planet, improveeducation, and, ultimately, boost private-sector profits.

Organization The book is divided into eight chapters. The first seven canbe looked at as major milestones in the life and career of Neville Isdell while the last one is on connectedcapitalism which highlights the importance of beingconnected with the local community and giving back to it.

Verdict: 3.5/5

With a title as tantalizing as, Inside Coca -Cola: A CEOs lifestory of building the worlds most popular brand oneexpected a chance to understand the inner workings andthe strategy that makes Coca-Cola one of the mostpowerful brands, especially since Isdell led Coke during atime of tremendous change in the world - fall of the BerlinWall, the freeing of Nelson Mandela, as well as in the softdrink industry - the decline of returnable bottles, the riseof the "anchor bottler," the growth of juices, teas andwaters and when the company itself was reeling under aseries of controversial incidents. Also, given the fact thatCoke was one of the first marketed products, evencredited for our modern day image of Father Christmas,

there is no detail of any type of marketing.

Bottom-lineThe book is essentially a travelogue of Isdell s assignments

around the world and the people he met and worked with,

and throws some light on his personal life as well. It is an

easy read and can be labeled as interesting enough,

strewn with some poignant anecdotes like meeting Nelson

Mandela and retrieving a piece of the Berlin Wall. But if

you are looking for a genuine INSIDE look into Coca-Cola,

the book is not for you.

specials | bookmark markathon | july 2013

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specials | radical thoughts markathon|january 2013

10

CONTROVERSY IS BAD.

Ashok A | IIM S

There is an old marketing axiom, which saysadvertisings greatest enemy is not rejection, but

indifference. Marketers and admen of late seem tohave taken a strong grip of this axiom. Instances of provocative and controversial ads appearing haveincreased many folds in the past decade. Butmarketers fail to realize that a surge of publicitycreated by a controversy will not serve the cause of

brand building in the long run. And I do notcompletely disagree about the good a controversy cando to the brands . When I say this, everyones mindwould go searching for one brand. United Colors of

Benetton. UCB has been controversys child for a very

long time. Its ad campaigns were intentionallyformulated to target most sensitive issues of theperiod. It is, of course, hard to deny the gains made byBenetton due to the campaigns. But it is equally hard

to deny the fact that it lost its customers who tookoffence because of such campaigns. It will be a clichto call a controversy in marketing as a double-edged

sword. But that is what it is.

Any brand (almost every brand) will at some point of time have to be repositioned to cope with changes inconsumer behavioral trends. Especially in Fashion

Industry, repositioning is a common phenomenon.When Burberry tried to reposition its position as an

authentic British wear to more democraticpositioning, they had a tough time because of their

previous British based ad campaigns. UCBs campaigns

have created a positive press and publicity mainlybecause of their targeted audience, like you and me.We love to be a part of controversies and rebelliouscampaigns. If Benetton has to reposition itself infuture to more business positioning or uptown fashionbrand, its current ad campaigns will definitely act as a

barricade. This will be the case with any brand thattakes up controversy as a short route to publicity.

Even brand names, which are mired with controversy,are destined to same fate. Take for instance, FrenchConnection, was known for selling upmarket fashion

accessories to fashion conscious British businesspopulation. But when the company wanted to targetteens, they rechristened as French Connection United

Kingdom, popularly known by its acronym FCUK. By

doing so, it gained popularity among the teens butdistanced itself away from certain segment like

parents. My parents never allowed me to wear a teeshirt with swear word on it. Though I have taken allexamples from fashion world, it can be true for other

sectors also. PepsiCos Mountain Dew unsuccessfullytried their luck at controversy with an ad, which wasaccused of racism. Negative effect of controversy can

shatter your hard built brand. As Googles DanCobley puts it, hypotheses can never be proved, butonly disproved. You can keep on building the

credibility of your hypothesis, i.e. your brand, butyou can never prove that you are brand. Rather asmall spark of controversy is capable of disproving

your hypothesis.

Marketers have to understand that not all publicity is

good and not all viral is good. The effort that would bespent on a negative aftermath can be directedtowards useful brand building, which will be

sustainable. No brand wants to be ignored. But I thinkmarketers sometimes forget whey their brands exist,

and who theyre trying to serve.

specials | radical thoughts markathon | july 2013

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By Prateek | IIM-S

BRAND LAUNCH

Make way for Porsche

The German auto giant is ready to set the ball rolling forpremium segment auto manufactures with its launch of second-gen Cayman S in India. Porsche is banking onthe brand name of Cayman series which is among thefinest handling cars ever made. Priced at around 93lakhs, this baby from the luxury car maker is sure to drilla hole in your pocket.

Personal care segment smells up with Engage

The home-grown FMCG giant ITC in its effort to expandits product portfolio has ventured into the competitivedeodorant segment with its offering, Engage. Thedeodorant highlights playful chemistry between thecouples which is evident in the silhouettes designed onthe bottles. The packaging also seems innovativeintended to capture the minds of youth.

The heat is on with Kindle Fire HD

Earths Largest Bookstore is all set to introduce itslatest version of tablets, Kindle Fire HD 7 inches andKindle Fire HD 8.9 inches. Customers will be able to gettheir hands on close to 2 million apps and around325,000 books which are exclusive to Kindle store.

BRAND WATCH

Repositioning Reality with Reebok

The sports goods maker from the stable of Adidas ismaking a comeback in the premium segment after hitby controversy. Reebok plans to launch around 100 fithubs called Reebok Fit hubs aiming to provide fitnessconsultation to customers. The company has also ropedin two Bollywood actors as their brand ambassadorsalong with Gautam Gambhir as part of their brand

building initiative.

After Atom Bomb, Pepsis top management tumbles

With a rather shabby response to Pepsis latest offering

and a poor recept ion to Pepsis IPL campaign, its Indiahead Manu Anand resigned from the helm after servingin the company for 19 years. This comes as a major hitto the cola maker amidst news of promotion of Cocacola India chief.

India Themed Gallardo makes inroads

The super luxury sports segment got its India avatar inform of a special edition sports car launched on theme

India. The German car maker has launched only sixcars giving exclusivity to its buyers and is set to makethem poorer by a jaw dropping 3.06 crore. Amidstturbulent times in the automobile industry,Lamborghini sales shot up from 14 in 2011 to 17 in2012.

MEDIA

Radio gets the i flavour

Technology Czar Apple introduced its radio servicecalled iRadio Service. It promises to feature contentfrom various labels and artists. The upcoming Ios7 willfeature the service free of cost and the customers willbe allowed to customize their own radio stations bygenre, skip songs and access for free around 200 servicestations making it a musical experience for customers.

Tri Color flying high at Cannes Lions

The Indian media agencies had bagged 23 awards onday four of Cannes Lions International Festival of creativity 2013. The awards were given in category of Press, Design, Cyber and Radio. McCann Worldgroupbagged two Gold Lions in Press category, whereasTaproot earned a Gold Lion each in the Press andDesign categories. Also Grey Worldwide earned a GoldPress Lion while Ogilvy & Mather won a Gold Lion in the

Design category.

specials | updates markathon | july 2013

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AD Watch

Aircel: More for Less

The ad featuring Indian Cricket Captain Mahendra SinghDhoni prays on the idea of joy on getting more thanexpected. In the ad, the guy looking for an autographfor Dhoni feels overjoyed when he gets Dhonis capapart from the autograph. The ad effectivelycommunicates the feeling of delight when we get morethan what we expect.

Youtube Link:http://www.youtube.com/watch?v=dCu83K7Nq54

RedBus

With a series of small ads, red bus tries to communicatethe essentials provide by the bus ticketing company.The ads ranging from featuring an old couple in need of an immediate bus ticket to a pregnant women lookingto travel to Goa checking the various bus rating,

effectively connects with its target audience andpromotes Red Bus as one stop shop for bus ticketingsolutions.

Youtube Link:http://www.youtube.com/watch?v=4kXpcBxSeaY

Cadbury Bounville

Not so Sweet: After smart positioning of chocolate withtagline You dont buy it, you earn it, Bournville camewith a surprise with its new positioning of Not so

sweet. Though the message is loud and clear and hitsdirectly at the target segment, it seems as if the ad wasnot meant for Indian consumers and is directly put herefrom some other market. The same message could havebeen delivered in a much better way.

Youtube Link:http://www.youtube.com/watch?v=ChY610zS94g

specials | updates markathon | july 2013

Articles are invitedBest Article:

They receive a cash prize of Rs.1000 & a letter of appreciation

We are inviting articles from all the B-schools of India. The articles can be specific to theregular sections of Markathon which includes:

Perspective : Articles related to development of latest trends in marketing arena. Productolysis: Analysis of a product from the point of view of marketing. Strategic Analysis : A complete analysis of the marketing strategy of any company or an

event.Apart from above, out of the box views related to marketing are also welcome. The best entrywill receive a letter of appreciation and a cash prize of Rs 1000/-. The format of the file shouldbe MS Word doc/docx.

Were inviting photographs of interesting promotional events/advertisements/hoardings/banners etc. you might have come across in your daily life

for our new section The 4th P .Send your self-clicked photographs in JPEG format only.

The last date of receiving all entries is 26th July, 2013. Please send your entries marked as__ to [email protected].

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http://www.youtube.com/watch?v=dCu83K7Nq54http://www.youtube.com/watch?v=dCu83K7Nq54http://www.youtube.com/watch?v=4kXpcBxSeaYhttp://www.youtube.com/watch?v=4kXpcBxSeaYhttp://www.youtube.com/watch?v=ChY610zS94ghttp://www.youtube.com/watch?v=ChY610zS94gmailto:[email protected]:[email protected]:[email protected]://www.youtube.com/watch?v=ChY610zS94ghttp://www.youtube.com/watch?v=4kXpcBxSeaYhttp://www.youtube.com/watch?v=dCu83K7Nq54


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logo markathon | july 2013

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Marketing Club of IIM Shillong is extremely proud to unveil its logo. Apart

from portraying the essence of Marketing, i.e. the relationship between a

customer and a marketer, use of red color signifies dynamism and intensity

which are inherently associated with the domain.

Live Marketing !


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picturepage markathon | july 2013

View of the magnificient Umiam Lake near Shillong

Shillong at Dusk

C r e

d i t s : V a i

b h a v A n n a m

C r e

d i t s : M o n i k a P e r u m a

l

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Please send in your comments/feedback to:[email protected]

Visit: www.iims-markathon.in

Team Markathon, IIM Shillong
mailto:[email protected]://iims-markathon.in/http://iims-markathon.in/mailto:[email protected]

markathon_july13

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