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MARKMANTRA

MARKMANTRA | SEPTEMBER

Marketing Magazine of IIFT Kolkata


ISSUE 4 | September 2010

BW
BRANDWAGON
MARKMANTRA | SEPTEMBER

Editor’s Note
Dear Readers, Singapore to operate its business in India.
We are launching our first ever competition
I am pleased to release the 4th issue of through MarkMantra, To see the creativity side
MarkMantra. Issue after issue me and my teamof all the marketing enthusiasts we are inviting
have been working hard to make this magazineprint-ads for KOOVS. The two best entries will
better and better. With the help of new editing
take home certificates and cash prizes.
team we feel much more equipped and confident
Special thanks to Archana for her enriching
to deliver better. article on Branding of Educaton. As an ending
This issue is close to our heart since we had
note, we are listing down all the recent product
done few major changes. We have incorporatedlaunches in our special column LAUNCHPAD.
new columns to enrich the understanding of I hope you will thoroughly enjoy this issue with
few concepts which are not that easily available
its rich content.
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.
International marketing is very important a EDITING TEAM
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
is truly of great importance. Hence, we have Associate Editors
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.
I am thankful to Mr. Vivek Gupta for his precious Radhika Ravichandran
time giving us his interview and sharing with us
his experiences. Vivek, the Managing Director Vipul Saini
of a online shopping portal called KOOVS has
explained what it takes for a firm set-up in
MARKMANTRA | SEPTEMBER

CONTENTS
Banking on Marketing 4

Marketing Terms Exposed 7

International Marketing 8

Telecom: Dissolving Boundaries 10

Corporate Interview 13

Print-Ad Competition 15

Special Article 16

Launchpad 18
MARKMANTRA | SEPTEMBER

Banking on Marketing
Are Banks Customer Friendly? Do Banks attract customers ?

H
Do Banking services talked about ?
ow often have we walked into walking hand-in-hand with the customers
the bank feeling that it’s a chore and understanding their concerns. Given
to be completed and gotten over the financial crisis the world has gone
with at the earliest? Banks aren’t really through, nothing can substitute an element
places that attract you the way perhaps of trust in the mind of the customer about
shopping malls do, through it’s a common the bank’s advisory services offering a
thread of money running through it all. wide gamut of financial products.
Money needs no marketing; it’s perhaps
one thing that is inherently designed Despite what many believe, a bank’s true
to attract people.
However, investment
options for money need
their share of attention-
grabbing approaches
and we see banks often
portraying the same in
the media. Banks are
trying to build valuable
brand images with consumer-oriented brand value isn’t about its logo, tagline
advertising and distinct product lines. or its glossy financial products brochure.
Banks can no longer be order-takers, Instead, a bank’s genuine potential is
which was the characteristic of the old reflected through multiple components, all
banking industry. Today, banking across of them necessary - including customer
all segments of people – be it rich or poor, interactions, employee communications
urban or rural – first and foremost requires and corporate philosophy, and not just
MARKMANTRA | SEPTEMBER
advertising and marketing efforts. Banks brand their bank as an experience bank,
cannot merely show flashy advertisements when asked by management to double
on T.V or print self-congratulatory full the number of retail customers. As you
page ads in the national newspapers enter its branch office, you encounter the
bragging about the number of branches smiling face of a Jyske advisor standing
and get away with it.True marketing for behind a PC monitor on a countertop.
a bank happens when a customer steps This area is called the AskBar. In a Jyske
into a bank. The ambience at the bank, branch practically everything is called a
the tone of the bank employee and “Bar.” Even the till has been renamed the
their willingness to listen, the level of MoneyBar. At the AskBar you can get an
assistance offered, the speed at which orientation either from the bank advisor
the transaction is executed without any or from a short video. Or you can just
unnecessary obstacles – all this goes a proceed into the rest of the bank, at the
long way in creating an experience which centre of which is the aforementioned and
the customer will either appreciate or seemingly essential CoffeeBar, where
never want to relive. they serve some very fine coffee for free.
In the world of banking, Jyske Bank brings There, from the big plasma screen, you
in a difference. Jyske Bank, Denmark’s can watch the news (via RSS feeds from
third largest financial institution, invested various prominent newspapers around
400 million Danish kroner (equivalent to the world), weather reports, and so on,
54m euro or 72m USD) to redesign and while you help yourself to the coffee.
MARKMANTRA | SEPTEMBER
Another integral part of the new Jyske Jyske not only managed to double its
“bank of the future” is something called base, it also managed to get so much
the Theme Island. This is where you pick free press for its efforts that the bank’s
up “packages” that describe the bank’s awareness skyrocketed.
“products.” Jyske has made an attempt
to make its products physical by putting Banks in India still have a long way to
them into boxes like software boxes or go to creating a memorable experience
DVD boxes, to make intangible and often for the customer that matches up to the
complicated things like investment options kind of experience a fine hospitality set-
easy to understand and interesting to buy. up like Jyske Bank would offer. However,
there is always the scope of creating
Anyone can walk into the bank, just like an environment that encourages the
they would into a coffee shop, read papers, employees to be truly concerned about
hang around and maybe even check out the customers. The banking industry does
some new products and services the not have many points of differentiation
bank offers. The packaged products have because the nature of product offerings
a barcode that you scan on specially is more or less similar. But they can
designed computers which will then show differentiate by providing high quality
you a small movie about the product and service which in turn will lead to customer
what it has to offer. The conference rooms satisfaction.
in Jyske Bank branches also feature huge
wall-mounted plasma monitors. These The banking sector has a huge role to
are touch-screen controlled. Customers play in safeguarding the prospects for
can stroll into a conference room with economic development across the globe.
coffee in hand, and a bank advisor can Financial awareness in India is still in its
show them video presentations or use the infancy where the masses are concerned.
touch screen to help them calculate what People still need to understand the basics
their mortgage payments might be, for of financial planning and how best they
example. Jyske Bank is a bank, a store, can create, manage and sustain wealth.
and a modern library. It is the place where Banks have a very important role to play
customers become smarter, inspired, and in the new India that is growing at a
experience a straightforward atmosphere. pace which was never seen before. The
MARKMANTRA | SEPTEMBER
need of the hour is to go beyond merely
selling depository services and financial
products. It’s not really about selling,
it’s about creating value. If marketing in
banks comes up to this, the day isn’t far
when banking will become an enjoyable
experience for the customers and the Tryvertising:
ambience in the banks will begin reflecting It is a term actually used to make the
a warm and welcoming environment. consumers familiar about the product be-
Going the extra mile is what is ultimately fore they actually buy it by actually mak-
going to bring the customer back again ing them try the products. It is actually a
and again, something that even the best new breed of product placement in the
of brand taglines can never do. real world, integrating the goods and ser-
vices into daily life in a relavant way. In
Wriiten By this way the customers can actually make
up their minds based on the experience,
Mehak Gandhi not on messages.
MBA IB (09-11)
Indian Institute of Foreign Trade

Product Placement:
Is also sometimes known as embedded
marketing, where the products are con-
texually placed in movies, television seri-
als or news. This method is very effec-
tive as it is able to make a “emotional
connect“ and better dovetailing with the
relevant content.
MARKMANTRA | SEPTEMBER

International Marketing
MARKMANTRA | SEPTEMBER

Written by
Arvind Yadav
MBA IB (10-12)
Indian Institute of Foreign Trade
MARKMANTRA | SEPTEMBER

Telecom: Dissolving boundaries

I 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 vicin-
ity. Something similar is happening nowadays in the telecom industry. 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. Earlier,
ARPU was very dominant factor for telecom industry but it is not the exact measure
of profitability. But now telcos have realized it is not only about the ARPU but the
minutes of usage i.e. time for which subscriber is using the network. More the net-
work is used, more the revenue is being generated by the operator. The importance
of co-branding is reiterated with the latest developments in the Telecom industry.
Written by | Vikram Singh | Snehal Gajbhiye | Symbiosis Institute of Telecom
Management
MARKMANTRA | SEPTEMBER
Telecom in Retail to talk more or talk more and buy more.
It is well known fact that consumer ac- This concept is similar to petro cards in
quisition cost is much more than retention early 2000s which was joint effort of pe-
cost and hence Telco’s are also looking troleum and credit card companies like
for different innovative and loyalty based HPCL-ICICI Bank credit card and IOC-
programs to retain their customers. This Citibank credit card where customer is
may prove to be a better technique in- getting exemption from the surcharge
stead of using all your money for market- imposed on fuel, 15% discount on pollu-
ing, branding and advertising as telecom tion under control check, 5% discounts on
industry enjoys one of the most lowest Exide batteries, MRF tyres. Future group
customer retention rates. Tata Teleser- is also giving a thought to have collabo-
vices is among the very first operators ration with fuel companies, free electric-
to enter into a strategic alliance with Fu- ity offer for those who have purchased
ture group to bring about a new marketing

concept of “Retailer-Telco partnership” electric appliances from Future retail out-


under “T24” brand. T24 simply means lets. In the era of increasing competition
talk for 24 hours which is a loyalty based only option left with the operators is to
program in which consumer will buy more gain as well as to retain. Same strategy
MARKMANTRA | SEPTEMBER
can be followed by Airtel with Easyday
as well as Reliance with Reliance fresh.
As a matter of fact that Virgin Mobile tar-
gets mostly the youth sector so they have
decided to have tie-ups with electronics,
consumer goods, apparels, restaurants,
consumer goods. But still there is lot to
be explored and achieved in this concept
of co branding. For example: Companies
giving international SIM like Airtel has re-
cently launched World SIM for interna- basis cueing subscribers to book the tick-
tional roaming can also collaborate with ets well in advance after receiving the
Airlines. Mcoupon.
Telecom in Media Bundling of Services
Way in which telecom entered into re- Most people think telecom is restricted
tail sector, same way it has entered into to voice calls but there are lot of things
media and multiplexes. Vodafone Tues- under umbrella called telecom like DTH,
days: a concept in which Vodafone cus- wire line, wireless, VAS, Broadband. So
tomers are being awarded 2 movie tickets operators like AIrtel, Tata, Reliance which
at price of one on Tuesdays with Satyam are in all the verticals can gain an added
cinemas in Delhi, Mumbai, Chennai. Loop advantage by providing discounts on ac-
mobile is also providing similar kind of cess of all these services from the same
services with Cinemax multiplexes and operator. This is bundling of services.
Sterling multiplexes on Fridays. One can Moreover if we observe the scenario in
also purchase a combo pack of regular European countries, we find that they
Popcorn & Coke at just Rs. 50. Through have started convergence of all these
this tie-up with all 13 Cinemax theatres services on single platform which not only
and Sterling Cinema in Mumbai, Loop saves on the cost but also reduces sub-
Mobile subscribers located anywhere in scriber churn and provides retention.
the city will be at convenience. While the
procedure to avail this is very simple, the
scheme is open at a first come first serve
MARKMANTRA | SEPTEMBER

CORPORATE INTERVIEW People usually confuse E-commerce with only


Q1. Could you tell us about Koovs and its having ‘www’-presence and ignore the possibility
business model? of offline associations with complementary
Koovs Singapore Pte. Ltd. provides an online businesses. Perhaps exploring the offline
platform for mass dealings of products & services association for any E-commerce is the most
at an exceptionally great bargain. It assists all important piece of advice I would recommend to
Merchants (big/small) through personalised all new ventures.
consulting, and packaging their products & Q5. Reasons for choosing Singapore as your
services into lucrative e-commerce saleable business center?
attractions so that they can get Singapore is the world’s fastest
more business and benefit from growing business destination.
economies-of-scale. Its dense demographics
At the same time it helps its and high currency valuation
Customers in availing amazing makes it an attractive choice
products & services and gives among many APAC and SEA
individual customer a great countries. It offers many
buying power through demand challenges and opportunities at
aggregation strategy. the same time and thus gives
Q2. How do you communicate Vivek Gupta, MD, KOOVS an immense grooming platform
with your target market?
for entrepreneurs like me.
Always moving ahead with our new strategies,
Q3. What are some of the Promotional
Koovs’ competitive-advantage has made it
strategies you employ in Singapore?
unbeatable in Singapore because of its strategic-
Without a doubt there are millions of businesses
partnerships through which we have managed
that have a proven track-record of E-commerce
to affiliate ourselves with indirect channels of
venture. But that’s not the case with many
Government support. In addition, we deploy all
businesses that are trying to sell products &
major E-commerce expansion tactics through
services in a competitive market.
revenue-sharing affiliation programs, linking up
To penetrate a saturated market like in Singapore
with several social-media and social-networking
one needs to have ideas lucrative enough to divert
websites like Facebook, Twitter etc.
MARKMANTRA | SEPTEMBER
traffic towards his E-commerce platform. At Koovs Q6. How are you targeting customers in India, or
we strongly believe in strategic-partnerships. One other countries: International marketing aspect?
of our partners is Recycle Machine Enterprise Koovs is among the early starters of Group-
(RME), run by a group of philanthropists. They buying websites in India. Today it is a very
deploy their recycling vending machines in most renowned and popular venture. Also it is the first
crowded and posh areas of Singapore. And the and the only Group-buying company to expand
people who use these recycling machines to overseas. Although our regional operations target
throw in plastic-garbage are rewarded by Koovs location-specific market but the internal sharing
coupons whose price may vary from $1 to $20. of expertise and resources that we have acquired
Even big-corporate cannot compete with Koovs over a period of time gives us the edge over
in rewarding people with such a hefty offer for competition.
recycling a used plastic-garbage. Q7. What was your prime motive in becoming
Thus, Koovs is playing a big role in the ‘Green an entrepreneur?
Singapore’ promotions by the Government. I consider myself an above average risk-taker
Likewise, in India Koovs has over 30 corporate and an opportunist. Being an aggressive doer
tie-ups (IBM, Cisco etc), over 20 affiliate who can relatively easily deal with today’s
partnerships (Lootmore, Foodiebay, Accentium struggles without getting distracted by future
etc) and many strategic-partnerships (Myntra, rewards or lucrative substitutes during failures, I
Ferns & Petals etc). On a similar note we are would say, in one word, it’s the ‘job-satisfaction’
proceeding on to new territories. that was the prime motive behind becoming an
Q4. What are the future prospects and growth entrepreneur. And the love for the ownership and
avenues your company is looking at? willingness to take responsibility of activities/
With the pace our start-up venture Koovs is tasks help me deals with the ‘motivation’ part.
expanding we expect it to be among the top
service selling E-commerce venture in South- This interview was given by Vivek K Gupta
east Asia by Feb 2011. Koovs’ altered strategies an IIT grad who had done his MBA from
and innovative ideas have been successful till Nyenrode Business University & Kellogg
date and most likely will outperform the top-most School of Management. Presently he is the
regional competitors. MD of KOOVS.
As of now we have presence in India and
Singapore. And we are up for a big launch in
another big SE Asian country soon.
MARKMANTRA | SEPTEMBER

PRINT-AD Competition
Design a print ad for the promotion of Koovs. To know more about Koovs, please refer to the
interview of MD Koovs published in this edition. For further detail visit at koovs.com.
Prizes
The top two entries would receive certificate of appreciation and prizes worth Rs 500 each.
Rules
1. The maximum number of members in a Team may be two.
2. Please send your entries with subject line as well as document name as
<Koovs>_<TeamName>_<Institute name> to markmantra.iift@gmail.com.
3. The last date of receiving all the entries is 25th October 2010.
4. The entries would be judged by the IIFT professors and the shortlisted entries would be sent
to Koovs MD for final decision.
MARKMANTRA | SEPTEMBER

Branding for Education


Special Article
Let us look back at the last couple of years when the discerning buyer through courses that were
India was at the brink of the great recession. never thought of before, alternative careers and
Stocks plummeted, 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. Companies were 'down-sizing' industry that is starkly in contrast to the existing
and jobs were non-existent. It was probably the laws of marketing and branding. 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. A manager's
and settle for smaller packages. It was during decision can impact children, students, parents
this time that one industry still posed a ray of and consequently the future of the country. Also,
hope. 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, expanding and customers to embrace progressive new ideas.
leveraging on the current situation. Preschools, Let’s look at the new laws of branding and
private schools, private colleges, educational marketing for the education industry:
services, film schools, after-schools and of Minimalistic Marketing: When it comes to
course B-schools were mushrooming rapidly. education, one cannot afford to be over the top.
The arrival of Education as an industry was One’s brand presence has to be very calculated.
announced. The Economic Times called it ‘the For instance, an article on a school that believes
lone bright star in the year gone by’. in world citizenry cannot have an advertisement
Today 63 years after India’s Independence, or article next to the Page 3 column of a local
the nation adopts a view to education that is newspaper. Managers need to stay ‘focused’
progressively different. The industry has witnessed rather than shoot an arrow blind-folded. One
the emergence of many private players over the cannot blatantly give a bullet point message of
years. India's private education market was worth 'benefits' or 'grab your free scholarship' message
$40 billion in 2008, which is expected to reach nor can one afford to be elitist and say that
$68 billion by the year 2012. With privatization, 'education is not for everyone'. For instance:
comes a bouquet of offering that brings choice to Ahmedabad Management Association's (AMA)
MARKMANTRA | SEPTEMBER
advertisements communicate a simple message activity instilled great values among the little
in black and white with no graphics, occupying ones, and was covered by local press. Parents
the smallest space possible in local newspapers. created word of mouth by talking about this
Simultaneously, Arindham Choudhary’s IIPM innovative event among their peers.
ads take up full pages in color print. Yet AMA It's not Marketing, it’s Communication: When
pulls more crowds in Ahmedabad than IIPM! Its it comes to Education, the word marketing forms
minimalism makes it look like an established a clear disassociation. Managers should use
player who is here to educate, and not to sell. the term communication rather than marketing.
Usually with schools and colleges, it is important Education institutes do have targets for
to be seen as a player who exists for creating admissions intake, 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. Managers or sales representatives, they should be called
should also focus on events that have a social counselors. Their aim should not be to bring
and community focus. For instance: The school in an aforesaid number of ‘customers’, but to
Riverside organized a no car day with their educate students about the courses provided. So
students to create awareness about global instead of giving your customers loyalty cards,
warming and reducing the carbon footprint. The give them your true loyalty by being partners in
event was covered by local print and radio. their educational journey because loyalty cards
Building PR and Word Of Mouth: While and discount coupons don’t work as much as
choosing colleges and schools, people trust ‘a building relationships of trust. Schools should
third person’s message more than first person have a strong relationship with the parents, send
communication. You saying that you are the continuous communication to the students’ homes
best education provider will not help as much as and have regular student/parent workshops.
the newspaper saying the same thing, or your Identity Marketing: In the education industry, the
customer’s neighbor telling her. Hence the key current or existing customers are as important as
is to create positive word of mouth. This is done potential ones because they build positive word
simply by keeping your current customers happy of mouth. Hence, there should be a strong brand
and by indirectly communicating the same to the association for existing students and parents
rest of the world. For instance, the preschoolers through every little piece of communication
of Redbricks Junior marched to Mahatma Gandhi they receive; be it their uniforms, diaries,
Ashram in Ahmedabad and made 'A promise to invitation cards, soft board articles, school bags,
Bapu' on the occasion of Republic Day. This newsletters, annual magazines, alumni meets or
MARKMANTRA | SEPTEMBER
monograms. These should be standardized and given an opportunity to positively impact the
strategically thought of. The existing students community through public private partnerships.
should feel a strong association with the Many large companies look at Education as an
educational institution through these materials. integral part of their CSR activity. This creates
The students are the live brand ambassadors opportunity to explore the nascent idea of public
of the institution. Not just identity marketing but private partnership in education and developing
even the right kind of grooming of these students communication in relation to the same.
will ensure positive word of mouth for educational Indeed education as an industry has a long
institutes. way to go, heralding a change in the new world
Media and Education: Thanks to the ideas order. As we rewrite the rules of education, so
advocated by modern day movies like 3 Idiots, 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. and impacts lives significantly.
This indirectly supports many private players
who offer niche courses like clinical research,
photography, film making and creative writing.
Tata Sky's Active Learning Service exemplifies
education and media partnership, wherein kids
can learn through their television sets. Rob
who is famous for his art show; M.A.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. Thus, there
is good scope for promoting education using the
visual media too. Written by Archana Iyer
With the recent Right to Education Act, HRD Senior. Executive: Marketing Communication
Minister Kapil Sibal announced that all private Redbricks Education
schools shall be required to enroll children from MICA Alumnus 2008
weaker sections and disadvantaged communities
in their incoming class to the extent of 25% of their
enrollment. Hence private players are definitely
not discouraged by the government but in-fact
MARKMANTRA | SEPTEMBER

Product
Lauchpad
Product 1

Company Name: Brabus, Germany


head explode. Steve Jobs, your stupid-
Sector: Automobiles
fast luxury sedan has arrived.
Company Profile: Brabus, Germany, is
a high-performance aftermarket tuning
Launch Time: August 2010
company which specializes in Mercedes-

Target Market: The ultra-premium class


who are tech-savvy especially Apple
lovers

Positioning: The new mobile office

Product 2
Benz, Smart and Maybach vehicles.
Company Name: Virgin Group, UK
New Product: Brabus iBusiness Sedan Sector: Telecom, Aeronautics
The latest products from Apple, New
Product: Brabus iBusiness Sedan Company Profile: Virgin Group Limited
The latest products from Apple, including is a British branded venture capital
the iPad, have all been integrated into conglomerate organisation founded
a Mercedes-Benz S-Class to create by business tycoon Richard Branson.
the Brabus iBusiness. Not only does it The core business areas are travel,
promise to be exciting to drive, but the entertainment and lifestyle.
rear passenger compartment is fitted with
enough tech to make an Apple junkie’s
MARKMANTRA | SEPTEMBER

service providers that offers integrated


New Product: Virgin Galactic- Space
telecom solutions to its customers under
Travel along with 340 Virgin Galactic
the Tata Indicom, Tata DOCOMO, Photon
Astronauts at a cost of $ 200,000.
and Walky brands, and uses both the
CDMA and GSM technology platform(s)
Launch Time: Spring 2010
for its wireless networks.
New Product: DOCOMICS, a sequel to
Target Market: Customers keen to reach
infinity and beyond are from all walks of
life – from trust fund teens, to a 78-year
old grandmother and who can afford the
USD 200,000 price tag on a single ticket.

Product III
Company Name: TATA Teleservices TATA DOCOMO’s recently announced,
Sector: Telecom unique, industry first, m-Comics, enables
Company Profile:
consumers to read full comics on mobile
Tata Teleservices
along with special effects like character
Limited is one of
vibration, sounds, zooming text bubbles.
India’s leading
at a nominal rate of Rs 15/- per comic
private telecom
chapter.
MARKMANTRA | SEPTEMBER
Launch Time: Jan-Feb 2010

Target Market: TATA DOCOMO users


and customers with rich-media devices.
It is accessible through viewer application
platform for reading mobile comics.

Written by
Radhika
MBA-IB (10-12)
Indian Institute of Foreign Trade
MARKMANTRA | SEPTEMBER

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