MARKMANTRA | SEPTEMBER
Marketing Magazine of IIFT Kolkata
ISSUE 4 | September 2010
MARKMANTRA | SEPTEMBER
Dear Readers, I am pleased to release the 4th issue of MarkMantra. Issue after issue me and my team have been working hard to make this magazine better and better. With the help of new editing team we feel much more equipped and confident to deliver better. This issue is close to our heart since we had done few major changes. We have incorporated new columns to enrich the understanding of few concepts which are not that easily available elsewhere. Vikram and Snehal have come up with an Happy Reading, interesting article on T24 the buzz word these Praveen Kumar G days in the telecom and retail industry. They will tell us what T24 is all about. EDITING TEAM International marketing is very important a concept to know. Time has gone where domestic Managing Editor players used to focus on domestic markets, now domestic players are exploring international Naveen Gupta markets to survive domestically. With such an environment around us, International Marketing Associate Editors is truly of great importance. Hence, we have introduced a new column on International Arvind yadav Marketing which will deal with the strategy used by various MNCs to market their products and Gaurav Gudka services internationally. Radhika Ravichandran I am thankful to Mr. Vivek Gupta for his precious time giving us his interview and sharing with us Vipul Saini his experiences. Vivek, the Managing Director of a online shopping portal called KOOVS has explained what it takes for a firm set-up in Singapore to operate its business in India. We are launching our first ever competition through MarkMantra, To see the creativity side of all the marketing enthusiasts we are inviting print-ads for KOOVS. The two best entries will take home certificates and cash prizes. Special thanks to Archana for her enriching article on Branding of Educaton. As an ending note, we are listing down all the recent product launches in our special column LAUNCHPAD. I hope you will thoroughly enjoy this issue with its rich content.
MARKMANTRA | SEPTEMBER
Banking on Marketing Marketing Terms Exposed International Marketing Telecom: Dissolving Boundaries Corporate Interview Print-Ad Competition Special Article Launchpad 4 7 8 10 13 15 16 18
Banks can no longer be order-takers. Instead. all of them necessary . it’s perhaps one thing that is inherently designed to attract people. which was the characteristic of the old banking industry. employee communications and corporate philosophy. and not just
. a bank’s genuine potential is reflected through multiple components. tagline or its glossy financial products brochure. Given the financial crisis the world has gone through. through it’s a common thread of money running through it all. investment options for money need their share of attentiongrabbing approaches and we see banks often portraying the same in the media. urban or rural – first and foremost requires
brand value isn’t about its logo. banking across all segments of people – be it rich or poor. Today.including customer interactions.MARKMANTRA | SEPTEMBER
Banking on Marketing
Are Banks Customer Friendly? Do Banks attract customers ? Do Banking services talked about ?
walking hand-in-hand with the customers and understanding their concerns. a bank’s true
ow often have we walked into the bank feeling that it’s a chore to be completed and gotten over with at the earliest? Banks aren’t really places that attract you the way perhaps shopping malls do. Banks are trying to build valuable
brand images with consumer-oriented advertising and distinct product lines. Money needs no marketing. Despite what many believe. nothing can substitute an element of trust in the mind of the customer about the bank’s advisory services offering a wide gamut of financial products. However.
As you enter its branch office. and so on. the level of assistance offered. invested 400 million Danish kroner (equivalent to 54m euro or 72m USD) to redesign and brand their bank as an experience bank. the tone of the bank employee and their willingness to listen. This area is called the AskBar.
.V or print self-congratulatory full page ads in the national newspapers bragging about the number of branches and get away with it. when asked by management to double the number of retail customers. Or you can just proceed into the rest of the bank. weather reports. at the centre of which is the aforementioned and seemingly essential CoffeeBar. Jyske Bank. you encounter the smiling face of a Jyske advisor standing behind a PC monitor on a countertop.MARKMANTRA | SEPTEMBER
advertising and marketing efforts. In the world of banking. In a Jyske branch practically everything is called a “Bar. while you help yourself to the coffee.” Even the till has been renamed the MoneyBar. Jyske Bank brings in a difference. the speed at which the transaction is executed without any unnecessary obstacles – all this goes a long way in creating an experience which the customer will either appreciate or never want to relive.True marketing for a bank happens when a customer steps into a bank. There. where they serve some very fine coffee for free. At the AskBar you can get an orientation either from the bank advisor or from a short video. from the big plasma screen. Denmark’s third largest financial institution. you can watch the news (via RSS feeds from various prominent newspapers around the world). Banks cannot merely show flashy advertisements on T. The ambience at the bank.
But they can differentiate by providing high quality service which in turn will lead to customer satisfaction. Banks have a very important role to play in the new India that is growing at a pace which was never seen before. for example. it also managed to get so much free press for its efforts that the bank’s awareness skyrocketed. and a modern library. People still need to understand the basics of financial planning and how best they can create. These are touch-screen controlled. inspired. The conference rooms in Jyske Bank branches also feature huge wall-mounted plasma monitors. and a bank advisor can show them video presentations or use the touch screen to help them calculate what their mortgage payments might be. The
. there is always the scope of creating an environment that encourages the employees to be truly concerned about the customers. just like they would into a coffee shop. manage and sustain wealth. Financial awareness in India is still in its infancy where the masses are concerned. and experience a straightforward atmosphere. Anyone can walk into the bank. The packaged products have a barcode that you scan on specially designed computers which will then show you a small movie about the product and what it has to offer. to make intangible and often complicated things like investment options easy to understand and interesting to buy. Banks in India still have a long way to go to creating a memorable experience for the customer that matches up to the kind of experience a fine hospitality setup like Jyske Bank would offer. This is where you pick up “packages” that describe the bank’s “products. It is the place where customers become smarter.” Jyske has made an attempt to make its products physical by putting them into boxes like software boxes or DVD boxes. However. Jyske not only managed to double its base. The banking industry does not have many points of differentiation because the nature of product offerings is more or less similar. The banking sector has a huge role to play in safeguarding the prospects for economic development across the globe. hang around and maybe even check out some new products and services the bank offers. read papers. Customers can stroll into a conference room with coffee in hand.MARKMANTRA | SEPTEMBER
Another integral part of the new Jyske “bank of the future” is something called the Theme Island. a store. Jyske Bank is a bank.
Going the extra mile is what is ultimately going to bring the customer back again and again.MARKMANTRA | SEPTEMBER
need of the hour is to go beyond merely selling depository services and financial products. In this way the customers can actually make up their minds based on the experience. If marketing in banks comes up to this. This method is very effective as it is able to make a “emotional connect“ and better dovetailing with the relevant content. It’s not really about selling. television serials or news. it’s about creating value. integrating the goods and services into daily life in a relavant way. not on messages.
Product Placement: Is also sometimes known as embedded marketing. something that even the best of brand taglines can never do. the day isn’t far when banking will become an enjoyable experience for the customers and the ambience in the banks will begin reflecting a warm and welcoming environment. Wriiten By Mehak Gandhi MBA IB (09-11) Indian Institute of Foreign Trade
Tryvertising: It is a term actually used to make the consumers familiar about the product before they actually buy it by actually making them try the products.
. where the products are contexually placed in movies. It is actually a new breed of product placement in the real world.
MARKMANTRA | SEPTEMBER
MARKMANTRA | SEPTEMBER
Written by Arvind Yadav MBA IB (10-12) Indian Institute of Foreign Trade
time for which subscriber is using the network. Written by | Vikram Singh | Snehal Gajbhiye | Symbiosis Institute of Telecom Management
. They are now crossing the telecom domains by aligning themselves with other sectors or by establishing themselves in new geographic locations in search of revenues. Something similar is happening nowadays in the telecom industry. more the revenue is being generated by the operator.MARKMANTRA | SEPTEMBER
Telecom: Dissolving boundaries
t is rule of game called “Treasure hunt” that if you are not finding the hidden treasure then either search for new locations in the vicinity or expand the vicinity. But now telcos have realized it is not only about the ARPU but the minutes of usage i.e. More the network is used. The importance of co-branding is reiterated with the latest developments in the Telecom industry. Earlier. ARPU was very dominant factor for telecom industry but it is not the exact measure of profitability.
5% discounts on Exide batteries. Tata Teleservices is among the very first operators to enter into a strategic alliance with Future group to bring about a new marketing to talk more or talk more and buy more.MARKMANTRA | SEPTEMBER
Telecom in Retail It is well known fact that consumer acquisition cost is much more than retention cost and hence Telco’s are also looking for different innovative and loyalty based programs to retain their customers. branding and advertising as telecom industry enjoys one of the most lowest customer retention rates. In the era of increasing competition only option left with the operators is to gain as well as to retain. This may prove to be a better technique instead of using all your money for marketing. free electricity offer for those who have purchased
concept of “Retailer-Telco partnership” under “T24” brand. T24 simply means talk for 24 hours which is a loyalty based program in which consumer will buy more
electric appliances from Future retail outlets. 15% discount on pollution under control check. Same strategy
. MRF tyres. This concept is similar to petro cards in early 2000s which was joint effort of petroleum and credit card companies like HPCL-ICICI Bank credit card and IOCCitibank credit card where customer is getting exemption from the surcharge imposed on fuel. Future group is also giving a thought to have collaboration with fuel companies.
Moreover if we observe the scenario in European countries. While the procedure to avail this is very simple. Bundling of Services Most people think telecom is restricted to voice calls but there are lot of things under umbrella called telecom like DTH. we find that they have started convergence of all these services on single platform which not only saves on the cost but also reduces subscriber churn and provides retention. wireless. VAS. But still there is lot to be explored and achieved in this concept of co branding. One can also purchase a combo pack of regular Popcorn & Coke at just Rs. consumer goods. This is bundling of services. restaurants. the scheme is open at a first come first serve
basis cueing subscribers to book the tickets well in advance after receiving the Mcoupon. consumer goods. Vodafone Tuesdays: a concept in which Vodafone customers are being awarded 2 movie tickets at price of one on Tuesdays with Satyam cinemas in Delhi. Loop mobile is also providing similar kind of services with Cinemax multiplexes and Sterling multiplexes on Fridays. As a matter of fact that Virgin Mobile targets mostly the youth sector so they have decided to have tie-ups with electronics. wire line.MARKMANTRA | SEPTEMBER
can be followed by Airtel with Easyday as well as Reliance with Reliance fresh. So operators like AIrtel. Through this tie-up with all 13 Cinemax theatres and Sterling Cinema in Mumbai. Telecom in Media Way in which telecom entered into retail sector.
. Loop Mobile subscribers located anywhere in the city will be at convenience. same way it has entered into media and multiplexes. 50. For example: Companies giving international SIM like Airtel has recently launched World SIM for international roaming can also collaborate with Airlines. apparels. Reliance which are in all the verticals can gain an added advantage by providing discounts on access of all these services from the same operator. Chennai. Tata. Mumbai. Broadband.
But that’s not the case with many businesses that are trying to sell products & services in a competitive market. and packaging their products & at an exceptionally great bargain. Koovs’ competitive-advantage has made it unbeatable in Singapore because of its strategicto affiliate ourselves with indirect channels of Government support. Perhaps exploring the offline platform for mass dealings of products & services association for any E-commerce is the most Merchants (big/small) through personalised all new ventures. provides an online businesses.MARKMANTRA | SEPTEMBER
Q1. It assists all important piece of advice I would recommend to
Q5. Q2. MD. linking up websites like Facebook. What are some of the Promotional strategies you employ in Singapore? Without a doubt there are millions of businesses that have a proven track-record of E-commerce venture. economies-of-scale. At the same time it helps its Its and high currency valuation makes it an attractive choice among many APAC and SEA countries. Reasons for choosing Singapore as your business center? services into lucrative e-commerce saleable attractions so that they can get Singapore is the world’s fastest more business and benefit from growing business destination. In addition. How do you communicate with your target market?
challenges and opportunities at
Vivek Gupta. consulting. Could you tell us about Koovs and its business model?
People usually confuse E-commerce with only having ‘www’-presence and ignore the possibility of offline associations with complementary
Koovs Singapore Pte. Twitter etc. KOOVS
the same time and thus gives
Always moving ahead with our new strategies.
for entrepreneurs like me. we deploy all revenue-sharing affiliation programs.
partnerships through which we have managed
major E-commerce expansion tactics through with several social-media and social-networking
To penetrate a saturated market like in Singapore one needs to have ideas lucrative enough to divert
. It offers many dense demographics
Customers in availing amazing products & services and gives individual customer a great buying power through demand aggregation strategy.
an immense grooming platform
MD of KOOVS. in rewarding people with such a hefty offer for competition. They buying websites in India. Today it is a very deploy their recycling vending machines in most crowded and posh areas of Singapore. On a similar note we are would say. Foodiebay. What are the future prospects and growth entrepreneur. run by a group of philanthropists. And the renowned and popular venture. or
of our partners is Recycle Machine Enterprise Koovs is among the early starters of Group(RME). that was the prime motive behind becoming an willingness to take responsibility of activities/
expanding we expect it to be among the top
service selling E-commerce venture in South. At Koovs we strongly believe in strategic-partnerships. Presently he is the As of now we have presence in India and Singapore.
Likewise. How are you targeting customers in India. Koovs is playing a big role in the ‘Green an entrepreneur? Singapore’ promotions by the Government.
date and most likely will outperform the top-most School of Management. in India Koovs has over 30 corporate and an opportunist. Accentium struggles without getting distracted by future etc) and many strategic-partnerships (Myntra.MARKMANTRA | SEPTEMBER
traffic towards his E-commerce platform. Cisco etc).This interview was given by Vivek K Gupta east Asia by Feb 2011. over a period of time gives us the edge over Q7. rewards or lucrative substitutes during failures. Being an aggressive doer tie-ups (IBM. Also it is the first
people who use these recycling machines to overseas.
. over 20 affiliate who can relatively easily deal with today’s partnerships (Lootmore. And the love for the ownership and avenues your company is looking at? With the pace our start-up venture Koovs is tasks help me deals with the ‘motivation’ part. What was your prime motive in becoming I consider myself an above average risk-taker
and the only Group-buying company to expand
location-specific market but the internal sharing
Thus. of expertise and resources that we have acquired Even big-corporate cannot compete with Koovs recycling a used plastic-garbage. it’s the ‘job-satisfaction’ Q4.
Ferns & Petals etc). Although our regional operations target throw in plastic-garbage are rewarded by Koovs coupons whose price may vary from $1 to $20. One other countries: International marketing aspect? Q6. Koovs’ altered strategies an IIT grad who had done his MBA from and innovative ideas have been successful till Nyenrode Business University & Kellogg regional competitors. in one word. I proceeding on to new territories. And we are up for a big launch in another big SE Asian country soon.
MARKMANTRA | SEPTEMBER
Design a print ad for the promotion of Koovs.com. please refer to the interview of MD Koovs published in this edition. The last date of receiving all the entries is 25th October 2010. <Koovs>_<TeamName>_<Institute name> to markmantra. Prizes Rules
The top two entries would receive certificate of appreciation and prizes worth Rs 500 each. Please send your entries with subject line as well as document name as 3.iift@gmail. The entries would be judged by the IIFT professors and the shortlisted entries would be sent
. 1.com. The maximum number of members in a Team may be two.
4. to Koovs MD for final decision. For further detail visit at koovs.
2. To know more about Koovs.
One cannot unluckiest placement year for B-school pass ignore the fact that education has always been outs who had to compromise on their dreams strongly within a social context. Also. film schools. an article on a school that believes in world citizenry cannot have an advertisement newspaper. Companies were 'down-sizing' industry that is starkly in contrast to the existing and jobs were non-existent. which is expected to reach nor can one afford to be elitist and say that comes a bouquet of offering that brings choice to Ahmedabad Management Association's (AMA) $68 billion by the year 2012. Minimalistic Marketing: When it comes to
course B-schools were mushrooming rapidly. leveraging on the current situation. parents hope. after-schools and of The arrival of Education as an industry was announced. For instance. Managers need to stay ‘focused’
Today 63 years after India’s Independence.
One’s brand presence has to be very calculated. educational marketing for the education industry: services. or article next to the Page 3 column of a local the nation adopts a view to education that is progressively different. students. It was during decision can impact children. One
the emergence of many private players over the cannot blatantly give a bullet point message of
years. Preschools. private colleges. education. alternative careers and Stocks plummeted. The fall of the financial and IT industry brand managers have to break-free from the saw the rise of small and large educational traditional laws of education to convince their institutions offering their services. With privatization. expanding and customers to embrace progressive new ideas. A manager's this time that one industry still posed a ray of and consequently the future of the country. and with them plummeted early childhood education among other things. the hopes and dreams of a secure and financially Brand managers need to brace themselves for an sound future. Let’s look at the new laws of branding and private schools.MARKMANTRA | SEPTEMBER
Branding for Education
Let us look back at the last couple of years when India was at the brink of the great recession. 'education is not for everyone'. one cannot afford to be over the top. For instance:
. the discerning buyer through courses that were
and settle for smaller packages. The Economic Times called it ‘the lone bright star in the year gone by’. India's private education market was worth 'benefits' or 'grab your free scholarship' message $40 billion in 2008. The industry has witnessed rather than shoot an arrow blind-folded. never thought of before. It was probably the laws of marketing and branding.
Managers or sales representatives. be it their uniforms. and was covered by local press. Hence. their educational journey because loyalty cards
warming and reducing the carbon footprint. Schools should
communication. The give them your true loyalty by being partners in Building PR and Word Of Mouth: While and discount coupons don’t work as much as choosing colleges and schools. For instance: The school in an aforesaid number of ‘customers’. send best education provider will not help as much as and have regular student/parent workshops. For instance. or your customer’s neighbor telling her. the newspaper saying the same thing. the preschoolers through every little piece of communication of Redbricks Junior marched to Mahatma Gandhi they receive. they should be called and community focus. people trust ‘a third person’s message more than first person have a strong relationship with the parents. Parents the smallest space possible in local newspapers.MARKMANTRA | SEPTEMBER
advertisements communicate a simple message activity instilled great values among the little in black and white with no graphics. Hence the key
building relationships of trust.
to be seen as a player who exists for creating admissions intake. ads take up full pages in color print. diaries. created word of mouth by talking about this Simultaneously. Arindham Choudhary’s IIPM innovative event among their peers. It's not Marketing. Bapu' on the occasion of Republic Day. it is important Education institutes do have targets for the term communication rather than marketing. there should be a strong brand
and by indirectly communicating the same to the association for existing students and parents
rest of the world. occupying ones. yet those who sell admission a progressive change in the society rather than forms shouldn’t be called marketing executives being present for sales and profits. Their aim should not be to bring Riverside organized a no car day with their educate students about the courses provided. but to should also focus on events that have a social counselors. it’s Communication: When it comes to Education. annual magazines. Yet AMA pulls more crowds in Ahmedabad than IIPM! Its player who is here to educate. the
is to create positive word of mouth. You saying that you are the continuous communication to the students’ homes Identity Marketing: In the education industry. This is done potential ones because they build positive word
current or existing customers are as important as
simply by keeping your current customers happy of mouth. school bags. This newsletters. the word marketing forms
minimalism makes it look like an established a clear disassociation. alumni meets or
students to create awareness about global instead of giving your customers loyalty cards. and not to sell. Managers should use Usually with schools and colleges. Ashram in Ahmedabad and made 'A promise to invitation cards. soft board articles. event was covered by local print and radio.
The students are the live brand ambassadors opportunity to explore the nascent idea of public even the right kind of grooming of these students communication in relation to the same. Thus. Hence private players are definitely
Senior. These should be standardized and given an opportunity to positively impact the should feel a strong association with the Many large companies look at Education as an educational institution through these materials. education and media partnership. Executive: Marketing Communication MICA Alumnus 2008 Redbricks Education
Written by Archana Iyer
.D which is
telecast on Pogo channel has started offering art
and craft programs for children across various cities in India in alliance with Pogo. HRD
Minister Kapil Sibal announced that all private schools shall be required to enroll children from weaker sections and disadvantaged communities in their incoming class to the extent of 25% of their not discouraged by the government but in-fact enrollment. With the recent Right to Education Act. film making and creative writing. As we rewrite the rules of education. Rob
who is famous for his art show.A.MARKMANTRA | SEPTEMBER
monograms. so way to go. M. Not just identity marketing but strategically thought of. wherein kids
Tata Sky's Active Learning Service exemplifies can learn through their television sets. integral part of their CSR activity. This creates of the institution. should we rewrite the rules of marketing and Udaan and Wake up Sid. people now think beyond branding for an industry that is socially relevant engineering and medicine as carer options.
photography. The existing students community through public private partnerships. heralding a change in the new world
advocated by modern day movies like 3 Idiots.
private partnership in education and developing
will ensure positive word of mouth for educational Indeed education as an industry has a long Media and Education: Thanks to the ideas order. and impacts lives significantly. institutes. This indirectly supports many private players who offer niche courses like clinical research. there is good scope for promoting education using the visual media too.
your stupidSector: Automobiles fast luxury sedan has arrived. The core business areas are travel. Steve Jobs. Smart and Maybach vehicles. is a high-performance aftermarket tuning Launch Time: August 2010 company which specializes in MercedesTarget Market: The ultra-premium class who are tech-savvy especially Apple lovers Positioning: The new mobile office Benz. UK Sector: Telecom. but the rear passenger compartment is fitted with enough tech to make an Apple junkie’s Product 2 Company Name: Virgin Group. including the iPad. Germany head explode. Germany. Aeronautics Company Profile: Virgin Group Limited is a British branded venture capital conglomerate organisation founded by business tycoon Richard Branson. entertainment and lifestyle. Not only does it promise to be exciting to drive. have all been integrated into a Mercedes-Benz S-Class to create the Brabus iBusiness.MARKMANTRA | SEPTEMBER
Product 1 Company Name: Brabus.
. New Product: Brabus iBusiness Sedan The latest products from Apple. New Product: Brabus iBusiness Sedan The latest products from Apple. Company Profile: Brabus.
and Walky brands. New Product: DOCOMICS.
.MARKMANTRA | SEPTEMBER
service providers that offers integrated New Product: Virgin Galactic. unique. Product III Company Name: TATA Teleservices Sector: Telecom Company Profile: Tata Teleservices Limited is one of India’s leading private telecom
TATA DOCOMO’s recently announced. a sequel to Target Market: Customers keen to reach infinity and beyond are from all walks of life – from trust fund teens. zooming text bubbles. and uses both the CDMA and GSM technology platform(s) Launch Time: Spring 2010 for its wireless networks.000. sounds. to a 78-year old grandmother and who can afford the USD 200. Tata DOCOMO. industry first. enables consumers to read full comics on mobile along with special effects like character vibration.Space telecom solutions to its customers under Travel along with 340 Virgin Galactic the Tata Indicom.per comic chapter. Photon Astronauts at a cost of $ 200. at a nominal rate of Rs 15/.000 price tag on a single ticket. m-Comics.
It is accessible through viewer application platform for reading mobile comics.MARKMANTRA | SEPTEMBER
Launch Time: Jan-Feb 2010
Target Market: TATA DOCOMO users and customers with rich-media devices. Written by Radhika MBA-IB (10-12) Indian Institute of Foreign Trade
.MARKMANTRA | SEPTEMBER
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