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Ways To Recession Marketing
Ways To Recession Marketing
Until recently, 18.28% owned by the Indian government, and on May 10, 2007, it sold its
complete share to Indian financial institutions.
The parent company is a globally renowned for its mini and compact cars for three
decades, its technical superiority, power and performance into a compact, lightweight
engine that is clean and fuel efficient.
Maruti has been labeled as an ―employer of choice‖ for automotive engineers and young
managers.
The company vouches for customer satisfaction.
Maruti has segmented its cars in the following segments
Segment
Segment
Segment
Segment
• M800 • Omni • Alto • SX4 • Gypsy
• Versa • Wagon- • D'zire • Grand
R
MUV
Vitara
• Zen
A1
• Swift
A2
A3
C
• A-star
• Ritz
It seems, changed gears just in time to survive and thrive despite the slowdown.
They revitalized their brand despite and in spite of the slowdown by simply
emphasizing its core brand proposition – value for money, fuel efficient cars – and
increasing its value!
But managing their brand portfolio well is not Maruti‘s only claim to the marketing
fame.
Over the last quarter of stagnating sales, the motor company went on an overdrive to
enhance its market penetration.
For one, instead of restricting its annual dealer level discount scheme till the end of
December (as it does every year to clear year-end sales), Maruti
1. Extended the lucrative cash discounts way into February;
2. Next up is their strategic tie-up with Corporation Bank to finance Maruti Suzuki
vehicles on an all India basis to enable credit access at a time when banks are antsy
about lending too easily; and
3. Finally, proactively embracing the ‗voluntary disclosure of fuel economy‘ to drive
home the message to consumers about their leadership in making highly fuel efficient
cars.
As per Shinzo Nakanishi, MD & CEO, Maruti Suzuki India Limited, the move ―would
enable customers to make an informed choice when purchasing a car in the market.‖
So this was the way Maruti-Suzuki tackled recession without showing any kind of
negative impacts in the sales of their products.
One of the best campaigns seen so far is the Vodafone's ZooZoo campaign. Never in the
history of Indian advertising we witnessed a campaign that generated so much interest
and curiosity among all the segments of the society be it young or old. So much has been
written about ZooZoo in various media.
ZooZoo was created to promote the value added services (VAS) of Vodafone.
Vodafone was trying hard to capture the VAS space because it is a potential cash cow
for cellular companies.
Vodafone also wanted to make the most of the IPL Season2. Although IPL is a crowd
puller, it is also a marketer's nightmare because of the clutter. IPL attracts all the deep
pocket advertisers and to standout, one needs to think out of the box.
Thus ZooZoo was born. ZooZoo is a semi alien semi-human character living in an earth-
like place (lot of which is left to the viewer's imagination).These are very simple beings
who are very expressive. They laugh aloud, cry loud and have a child like simplicity
around them. Thus have an emotional and personal attachment with all the consumers.
The success of ZooZoo is the success of minimalism and simplicity. Although the
production process of ZooZoo ads are not simple, as a consumer I was attracted to the
simplicity of the concept and the execution. ZooZoo also highlights the power of
storytelling. Each ad tells a very simple story. After all brands are made through story
telling.
Another factor that aided the success of ZooZoo is the scale of the campaign. Reports
suggest that there are around 25 different ads of ZooZoo to be aired during this IPL
season. This unprecedented scale has kept the curiosity high among the viewers. It has
infact dwarfed all the other advertisers in this season.
There is lot of risk being taken behind this campaign. The Vodafone managers who
okayed this campaign may have risked their jobs to bring out such a massive campaign.
The agency also risked their credibility. One should appreciate the creative talent of
O&M and Nirvana Films who proved that Indian Advertising has come of age.
Vodafone has taken ZooZoo beyond advertising.
The fan club in the facebook page of ZooZoo has already touched 316,572 and counting.
All these has transformed into a great viral movement. There are already a plethora of
mail forwards and blogposts celebrating ZooZoo.
ZooZoo is a great marketing story. Vodafone has benefitted immensely by this campaign.
It caught the attention and fancy of the consumers, aroused curiosity, told stories and
made people retell the story.
The revenues included a 7 percent benefit of revenue from their stake in Indus Towers.
Data revenues for Vodafone remained flat quarter on quarter, but were up 30 percent year on
year. Strangely enough, messaging (SMS) revenues declined quarter on quarter.
However, much like Bharti Airtel and Idea Cellular, Vodafone India reported a decline in ARPU,
impacted by the mobile termination rate cut.
In terms of Minutes of Use, Vodafone clocked 10% higher minutes of use, at 71,775 million
minutes, up from 65,276 million minutes used in Q4-09.
Of its Total Customer Base, 93.2 percent was Pre-paid. The company‘s average customer base
grew by 56 percent year on year, on launching in seven new circles.
Net additions for the company declined quarter on quarter - Vodafone India added 7.68 million
subscribers in the quarter, as opposed to 7.83 million subscribers added in the previous quarter.
Much like other operators, Vodafone India has suggested that usage per customer declined on
account of multiple SIM usage, which is being attributed to the free minutes and free SIM cards
being given by operators, particularly in new circles.
The above picture clearly depicts how the ZooZoo advertisements have helped in increasing the
customer base for Vodafone in the last quarter with a sharp increase of 3.8%, from 17.5% to
21.7%.
Vodafone reports churn on an annualized basis, and the company saw a pre-paid churn of 26.3
percent churn for the last four quarters, with a Pre-paid churn of 26.4 percent, and a post-paid
churn of 25.3 percent.