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SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF TWO-YEAR FULL TIME COURSE OF MBA
ACKNOWLEDGEMENT
The fulfillment of any research project work is in consequence of integrated effort of a number of people. This project report has been possible only through the guidance and help of many people. I hereby take an opportunity to express my sincere thanks to all those for their help and guidance. I would like to express my genuine gratitude to my project Guide at RDIAS, Ms. Vandana Pruthi for her valuable guidance in research and analysis through out the project. With her unfaltering support and direction, I have been able to complete this project and learn a lot. I finally thank all those friends who helped me in the completion of this project.
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EXECUTIVE SUMMARY
The reach of Internet in India has been 110 million now as compared to 593,000 million in 1998. With over 10 million of websites are available there needs to be some differentiating factor for them. A popular author in marketing Al Ries put forward 11 laws of Internet branding. This research effort tries to check the veracity of those laws. Out of those 11 laws, 7 laws have been borne out by this research while 4 laws have not been found true. The laws borne out by the research are: law of interactivity, law of generic name, law of proper name, law of advertisement, law of singularity, law of vanity, law of time. The laws not borne out are: law of divergence, law of either/or, law of transformation, law of globalism. While Al Ries work has an immensely readable style and his work is commercially successful. This research effort does not find all his laws to be correct. By the research, it has been founded that e-brand should ensure easier navigation first and then on interactivity, as e-brand loses 25% of its customers with every click. Internet brands, which are having generic name, were recalled less. There was significant difference between the generic and proper name e-brands recalled. So brand name selection should be proper. Regarding the medium of awareness, both online and offline medium plays significant role as per the research finding, so its not true at this introduction stage of web, about offline medium playing more significant role than online medium. Also viral marketing plays significant role in e branding regarding the awareness of e-brands. But the respondents lacks trust on the e-brands having only net presence. Al Ries says about the law of singularity regarding the presence of e-brands, which do not hold true in all categories. For e-mail services it do not hold, where as in jobs and search engine it holds. There have been certain limitations to study regarding literature gap and also all the laws of Internet branding cannot be tested, as they all are not research based. However certain guidelines for e-brands mentioned are helpful for building and surviving an e-Brand.
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TABLE OF CONTENTS
1. Introduction 2. Growth and Usage of Internet 3. Significance and need of the study 4. Review Of Literature 5. Research Objective 6. Research Methodology 7. Sampling Design 8. Data Collection 9. Data Analysis 10. Limitations 11. Findings of the Study 12. Conclusion 13. Suggestions and Recommendations 14. Bibliography
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But let us look at some facts, Internet has taken 5 yrs to active a critical mass of 50 million less, which radio took 38 yrs to achieve, television 13 yrs and cable 10 yrs. This suggests the rapid acceptance of Internet as a medium of connectivity and commerce. But in India, a survey says Internet is used by 92% for e-mails only.
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Internet access continues to be most widespread amongst the 1824 yrs. Age group. However, all age groups have seen vast increase in access over the last 18 months. A significant development is that almost 11% of people over the age of 40 now access the Internet. As per an IRS study in 2000 (Indian readership survey) the reach of Internet has increased by 77.57% growth compared to Last yr. So Globally also the Internet commerce revenues are expected to increase from $48.6 on in 1998 to $525 billion in 2002 to $1 million by 2010. Globally, 59.2% use the Internet as an information resource, 11.3% use it as an educational tool and just fewer than 8.2% use it for entertainment. When asked about what are the most frequently used service Online was 73.4% answered email, 77% answered search engines and 23% said they use it for down load/uploading software. Males continue to outnumber females in accessing the Internet at 77% compared to 23%. This has however increased from ratio of 82:18 in 2000. The survey findings also point to the fact that Indias achieve Internet population would spend close to 3.2 percent of its total regular household spending through Internet purchase, by 2003. (Source: NASSCOM site)
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Base on these preliminary findings, experts, concluded that penetration of Internet in India The prime reason for this is the lack of interactivity with offline brands. They are passive. Offline brands can only communicate one way via television, print and radio. Online brands Listen to the consumer, Learn from them and fact based on the consumers needs. This new skill is an online brands strongest assets. It enables the brand owner to form a one to one relationship with the consumer brands can be evolved much quicker on the Internet said Soderstorm. Thats because of the consistent feed back you get and the ability to see where uses are going one you site.
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Marketers must decide at which level(s) to anchor the brands identity. The most enduring of a brand are the values, culture and personality. They define the brands essence. But e-brand is different from traditional retail brand. There have been a lot of problems with the literature as no definition of e- brand was given. As per the definition of e-brand: The presence of a brand on the web is in the form of any site. For example yahoo.com and amazon.com are e- brands.
BRANDING:
Every one of us has grown up with some brand images in our mind. Ralph Lauren, reminds, use of clothing Marlboro reminds us of tobacco the Jenson & Nicholson campaign goes like this is a brand name? Broadly, it is an announcement of an identity. What is it that a brand name generates? A brand name generates a favourable perception in the minds of the customer. The role brand name has played in establishing undisputed. Kings in the commercial world needs no peculiar mention. How has Internet influenced branding?
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2. Technology: The data that present day Internet offers is too slow for tried and true branding techniques like audio and video to be used as branding tool. But the interactive capabilities that
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the web offers, goes one step ahead of what could be achieved with earlier branding technique.
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3. Impersonal nature of the web: Traditional branding counts on the ability of the brand to make an emotional connection with the audience. Many people feel that the web can be very impersonal and is only for technique. Actually, if done light, interactive applications and one-to-one technologies can make the web more personal that other media can.
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REVIEW OF LITERATURE
THE 11 IMMUTABLE LAWS OF INTERNET BRANDING: Ries and Ries had given 11 immutable laws of Internet branding as the expertise to branding on the online, the most challenging problem in the world of marketing today. These laws of Internet branding are valuable guide for those who operate, work or invest in e-business. 1. The law of Either /Or 2. The law of Interactivity 3. The law of the Common name 4. The law of the Proper name 5. The law of Singularity 6. The law of Advertisement 7. The law of Globalism 8. The law of Time 9. The law of Vanity 10. The law of Divergence 11. The law of Transformation
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Without it, your Website and your brand will go nowhere. Not since television took off in the early fifties has the nation seen such a technological revolution as the Internet. There is a relationship between television and the Internet. Each is a mass-communications medium. And nothing on earth affects more people in a more powerful way than the introduction of a major new mass-communications medium. We believe that history will rank the Internet as the greatest of all media. And the reason is simple. The Internet is the only masscommunications medium that allows interactivity. On the Internet a brand lives or dies in an interactive era. In the long run, interactivity will define what works on the Internet and what doesn't work. The secret to branding on the Internet is your ability to present your brand in such a way that your customers and prospects can interact with your message. It bears repeating. The difference between the Internet and every other medium is "interactivity." Unless your site has this crucial ingredient, it is going to get lost in cyberspace.
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It all starts with the name. If you pick a name that satisfies most of these eight naming strategies, then you will be well on your way to building a successful Internet brand.
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SUMMARY:
There has been lot of problem in literature regarding e- brands. No reading says about what does an e- brand means. Also there is no Indian work on e-brand as the concept is still a new one in Indian context. Al ries who gave 11 immutable laws of Internet branding is also not an outcome of systematic research. Hence this research will seek to fulfill the gap in literature and check does laws of Internet branding stands in real world.
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RESEARCH OBJECTIVE
Literature on Internet branding is hard to find. Most people who titled their work as work on e-brands are really writing on e-business. There is one author who has made the maximum contribution to e-brands is Al Ries and his book 11 immutable laws of internet branding however it is not clear whether these laws are the result of systematic research or are the observations and perception of the author. Primary objective A study of various tools for making a website as a brand.
Secondary objective 1. To check the veracity of these laws. 2. Comparing various features offered by companies on the net. 3. To check the effectiveness of internet Advertising
Hypothesis
The hypothesis flows from the laws stated by Al Ries. Out of the 11 laws, 7 laws have been incorporated into these hypotheses. Other 4 have been omitted as testing them would have involved a complicated methodology and high cost. So the hypotheses are: 1. Easy navigation is the top most e-brand expectation of the users. 2. Internet brand should be highly interactive to be successful. 3. Internet brands having generic names will be hard to remember so difficult to survive. 4. Offline advertisement is more significant than online advertisement in Internet branding. 5. Viral marketing plays important role in Internet branding. 6. Trusts on the e-brand that use Internet, as a medium is higher than e-brand use Internet as business. 7. In Internet brands there is no place for second brand. (To be checked through desk research) 1. Internet brand should follow the law of vanity i.e. it should be focused or not expand in different categories. 2. Internet brand should follow the law of time.
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Elements of Sample: Elements of sample for the study are defined as, a male or female who uses Internet. Sampling Units: Delhi City. Extent: Extent of this study is limited to Delhi only. Time: Time period in which the data was collected is March-2003.
Sampling Technique
In Probability Sampling, Random Sampling is used in the study, first of all Delhi city is divided into 4 groups on the basis of profile of people, size of household in those sectors. Randomly selected one sector from each group.
Sampling Frame
Sampling frame for selecting the person has been developed by dividing the city into 4 groups on the basis of profile of people, size of household in those sectors. Group no. Group name 1 Students 2 Mixed 3 High class 4 Middle class
Sample Size
Sample size of hundred respondents was selected.
DATA COLLECTION
Data collection was done on all days. Sunday, Monday, Wednesday and Saturday were selected in order to have respondents more representative of population.
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LIMITATIONS
1. Since the study was taken for two month, so there was a constraint of time, money and effort. 2. The biasness of consumer or response error cannot be eliminated. 3. All the laws of Internet branding given by Al Ries were not tested as part of research. 4. Certain assumptions were made in research: only those e-brands were considered which were recalled by at least 5 respondents. 5. Respondents were not aware of e-brand, so defining that, causes some biasness in a question of e-brand they can recall off. 6. In hypothesis of law of advertisement, no statistical test has been used. Only on the basis of results seen, hypothesis is been rejected.
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PARAMETERS/RANKS
Easier Navigation Personalized Service Trust Highly Interactive Environment Aesthetic Appeal
1
59 9 13 26 3
2
20 28 17 29 6
3
18 25 24 13 18
4
7 25 27 16 25
5
16 12 15 17 23
RANKING OF EXPECTATIONS FROM E-BRANDS 70 60 No. of People 50 40 30 20 10 0 1 2 3 RANKS 4 5 Highly Interactive Environment Aesthetic Appeal Easier Navigation Personalized Service Trust
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Easy navigation is the top most e-brand expectation of the users. It has been found through research that easier navigation is the top priority for ebrands, hence our hypotheses holds true.
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E-BRAND WITH GENERIC OR PROPER NOUN NAME RECALLED Generic Name 21% Proper Noun Name 79%
21%
79%
Ho: There is no significant difference in between the generic and Proper name of e-brands recalled. H1: There is significant difference in between the generic and Proper name of e-brands recalled. Type of test: Binomial (one Tail) Level Of Significance: 95% Region of Rejection: K 8 Calculated Value: K = 5 Since K value lies in the region of rejection, we can reject the null hypothesis. Hence there is significant difference between generic & proper noun name of e-brands recalled and hypotheses stands true.
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LIST OF E-BRANDS RECALLED Proper noun name Yahoo Rediff Google Indiatimes Lycos Indya Sify Usa.net Indiainfoline Altavista 123india.com Espnstar.com Amazon Bluemountain Archies.com No. Of Respondents 92 83 68 49 20 17 15 11 9 9 8 8 7 5 5 Generic name Hotmail Bazee Naukri 123greetings No. Of respondents 71 17 7 5
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AWARENESS OF E-BRANDS AWARENESS MEDIUM Online Medium Offline Medium % TIME 48.27% 51.73%
AWARENESS OF E-BRANDS
51.73%
48.27%
H0: There is no significant difference between online and offline medium for awareness of e-brands. H1: There is significant difference between online and offline medium for awareness of e-brands. No test been applied on this ratio data obtained from survey. But on observing the data, we can state that there is no significant difference between online and offline medium for awareness of e-brands. Hence hypotheses of advertisement do not hold true.
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ROLE OF VIRAL MARKETING IN E-BRANDING Forwarded mails checked No. Of respondents Always 18 Often 25 Sometimes 33 Rarely 15 Never 9
ROLE OF VIRAL MARKETING IN E-BRANDING Forwarded mails checked 9 15 33 25 18 Never Rarely Sometimes Often 30 40 Always
10
20 No. Of respondents
H0: There is no significant difference among the no. Of respondents regarding the forwarded mails checked. H1: There is significant difference among the no. Of respondents regarding the forwarded mails checked. Type of test: chi-square Level of significance: 95% Critical value: 9.49 Degree of freedom: 4 Calculated value: 18.35 Since calculated value (18.35) is greater than the critical value (9.49). Hence the null hypothesis H0 is rejected. So we can conclude that there is significant difference among the no. of respondents regarding checking of forwarded mails.
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ROLE OF VIRAL MARKETING IN E-BRANDING Messages Always forwarded No. Of 13 respondents Often 14 Sometimes Rarely 26 26 Never 21
Never
21 16 26 14 13
10
15
20
25
30
No. Of respondents
H0: There is no significant difference among the no. Of respondents regarding the messages forwarded to their friends. H1: There is significant difference among the no. Of respondents regarding the messages forwarded to their friends. Type of test: chi-square Level of significance: 95% Critical value: 9.49 Degree of freedom: 4 Calculated value: 7.9 Since calculated value (7.9) is smaller than the critical value (9.49). Hence the null hypothesis H0 is failed to be rejected. So we can conclude that there is no significant difference among the no. Of respondents regarding messages forwarded to their friends.
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TRUST ON E-BRAND
19
81
H0: There is no significant difference between the trust on e-brand as business and e-brand as medium. H1: There is significant difference between the trust on e-brand as business and e-brand as medium. Type of test: binomial test (one tail test) Level of significance: 95% Critical value: 0.05 Calculated value (p): 0.000005 Since p value (p=0.000005) is smaller than = 0.05, the null hypothesis is rejected. Hence there is significant difference in trust between the e-brands as medium and e-brands as business and hypotheses of trust holds true.
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LAW OF SINGLE E- BRAND E-Brand For EMail Used Yahoo Rediff Hotmail Indiatimes Others Percentage Of Time of Respondents 46.47% 22.73% 16.71% 5.62% 8.47%
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Yahoo Rediff Hotmail Indiatimes Others 5.62% 8.47% 22.73% 16.71%
In e-mail service yahoo is the market leader with 46.47% time-share of respondents surveyed. But rediff is market challenger with 22.73% and hotmail as market follower with 16.71%. So in this category there is not single e-brand presence. Here the single brand do not holds true.
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LAW OF SINGULARITY ON JOBS SERVICES E-BRANDS E-Brands For Jobs Naukri Jobsahead Monster Jobstreet Others % Of Time Of Respondents 49.6% 17.64% 13.9% 6.6% 12.26%
LAW OF SINGLE E- BRAND 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Naukri Jobsahead Monster Jobstreet Others E-Brand For jobs 17.64% 49.60%
13.90% 6.60%
12.26%
Using the same framework, it can be said that Naukri is market leader with Monster and Jobsahead as market followers at this stage. No market challenger is there for naukri.com. Hence it can be said that in jobs categories there is one e-brand presence. Here the single brand holds true.
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LAW OF SINGULARITY ON SEARCH ENGINE E-BRANDS E-Brands For Search Engine Google Yahoo Others % Of Time Of Respondents 77.7% 8.9% 13.4%
It can be deduced from the table that google is the market leader with 77.7% share of time of respondents. Yahoo and others are in market niches. So it can be said that in this category google is the only e-brand present on the net. Here the hypotheses of single brand holds true.
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Law of Time:
According to Al ries: if you want to be successful in business in branding .. in life.. you have get into the mind first. Notice mind nor market place. Being first in market place doesnt buy you anything expects a license to try to get in the mind first. There is no automatic advantage to being the first mover in a category unless you can make effective use of the extra time to work your way into the prospects mind Yahoo was introduced in 1994 as the first search engine on the Internet. Today yahoo is the leading search engine. Ebay was introduced in 1995 as the first auction site on the Internet. Today ebay is by far the leading auction site on the net, handling more than 2 million auctions a month in some 850 categories. Amazon.com was introduced in 1995 as the first bookstore on the Internet. Currently the company sells a billion dollars worth of books a year, many times that of its nearest competitor, barnesnandnoble.com. Bluemountain was introduced in 1996 as the first electronic greetingcard site. Currently the site receives 10 million visitors a month, more than all its competitors combined. Priceline.com was introduced in 1998 as the first company to sell airline tickets on the Internet with a name-your-own-price bidding system. Today priceline.com is far and away the leading site on the web for discount airline tickets and hotel rooms.
These are the five market leaders whose brands dominate their categories. Were yahoo, ebay, amazon, bluemountain and priceline literally first in their categories? Its hard to know for sure but probably not. Now taking example of google.com, it is now there in top 4 brands as per worldwide survey conducted by Interbrand 2001 brand of the year. Also in Indian context research say 77.7% time people use google for search engine. Google came after yahoo, but it make place in mind of people first than yahoo regarding its service. So we can say it is the timing in mind of consumer that matter than First mover advantage. Have you heard of Northenlight.com? You are not alone. More than 99 percent of web users are not familiar with the site. Although it is the largest search engine on the Internet, in the sense that it indexes some 160 million web pages. The problem is not with the site but with the timing. Hence it can be said that the hypotheses of law of time hold true.
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Law of Vanity:
As per Al Ries, the biggest mistake of all is believing you can do anything. Supremely successful co. believes they can do anything. They can launch any product into any market. But will the online world be any different than the off line world? We think not. To be successful on the Internet you still have to do business with human minds. Once you stand for something in mind, its hard to change the perception of what you stand for. Amazon.com was the first Internet brand to sell books & music CDs. The site is a roaring success, with current sales well in excess of 11bn annually. But what they are doing next? They are in process of turning themselves into a destination site where customers can find anything they could possibly want. DVDs & Videotapes Electronics & Software Toys & Video Games E-Cards Auctions Z shops Credit cards
Everyone wants to grow and you cant blame them so thats where rule of singularity falters. As web matures other brand will enter & survive. Also leader in that category with lose focus.
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CONCLUSION
As per the Hypothesis, Easy navigation is the top most e-brand expectation of the users & it has been found in the research that easier navigation is the top most expectation (around by 59% respondents) followed by highly interactive environment (29%) & personalized service (28%).
As per hypothesis Internet brand should be highly interactive to be successful. It holds true. As per research finding after navigation (around by 59% respondents, interactivity (29%) of e-brand should be there as per customers.
Internet Brands having generic name will be hard to remember so difficult to survive. As per the research finding, it also holds true. There is significant difference between generic & proper noun name ebrands recalled by the respondents with around 21% respondents able to recalled the generic names whereas around 79% respondents able to recalled proper noun names.
Our research shows that there is no significant difference between online or offline medium reach to customers with equal percentage to both the mediums. Respondents are aware of both online & offline medium. Both online & Offline medium were effective in e-brands awareness.
The hypothesis is been checked in research and found that viral marketing plays important role in Internet branding. More then 70% response from the respondents as always/often/sometimes suggests that viral marketing plays a very major role. Regarding the awareness of e-brand through online, Friends messages is significant reason. This can also be one reason for high awareness of e-brand through online medium (i.e. about 50%)
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This hypothesis has been tested & find true, significantly people trust one brand having presence in physical world with around 80% respondents saying yes against 20% saying no. This suggest that traditional should make presence on Internet soon and can have three alternatives in developing a brand name. These are to keep the same brand and merely put it online, create an online brand that is totally different, or creates a sub brand.
The hypothesis stands true, but in services such as e-mails, yahoo is leader with 46.47% of time of responders on it but rediff & Hotmail are market challengers. This is due to the fact in India Internet is mainly used for e-mail, so in this category only Internet is not in introduction stage. And also by al ries as web matures there is place for second & third brand is there. Hence law stands true. In search Engine, only google brand is there with 77.7% and others are market niches. In Jobs, Naukri is market leader with monster & Jobsahead are market follower but these are coming up fast with 14% & 17%. It can be explained due to fact that, Naukri is generic names, which will eventually going to fall out as per the law of common name.
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BIBLIOGRAPHY
1. Kotler, Philip Marketing Management (Ninth Edition), Prentice Hall of India Pvt. Ltd. pp. 185-186. 2. Kotler, Philip Marketing Management (Ninth Edition), Prentice Hall of India Pvt. Ltd. pp. 443. 3. Malhotra N.K, Marketing Research- An applied orientation, Pearson Education Asia, (Third edition) pp.67-68. 4. Ries, Al (2000), 11 Immutable laws of internet branding, Harper Collins publishers, New York. 5. E-Branding: Get Your Basics Right, www.indiatime.com/infotech/ecommerce/trend 6. Annete Hamilton,How The Web Was Won, E-Branding Is More Important Than E-Commerce a. www.zdnet.com/anchordesk/story/story_index_19981.
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QUESTIONNAIRE
Q.1. What all are the expectations by you from an internet brand? a) Easier navigation b) Personalized service c) Aesthetic appeal d) Trust e) Highly interactive environment ------------------------------------
Q.2. Name at least 8 Internet brands you can think of? ______ ______ ______ ______ ______ ______ ______ ______
Q.3. How do you come to know about e-brands mention by you? %age of times from a) Offline medium _________ (T.V., Banners, Friends, Magazines.) b) Online medium _________ (While surfing, Internet advertisement) Q.4. How often you visit or open the message or site forwarded by your friends? a) b) c) d) e) Always Often Sometimes Rarely Never
Q.5. How often you forward the same to other friends? a) b) c) d) e) Always Often Sometimes Rarely Never
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Q.6. On which of the following you will trust more? a) E-brand having simultaneous presence in physical world. Like: Citibank.com, ICICIdirect-online.com b) E-brand having no presence in physical world. Like: Bazee.com, shopsmart.com, hometrade Q.7. Name the sites/ e-brands you often go for: a) For e-mail Mail site a) _________ b) _________ c) _________ d) _________ b) For search Search engine a) _________ b) _________ c) _________ d) _________ c) For Job Mail site a) _________ b) _________ c) _________ d) _________ % of times
% of times
% of times
DEMOGRAPHIC DETAILS: a) Male /Female: _______ b) Age (yrs) 15-20 : 20-25 25-30 30-35 > 35
Unemployed