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MARKATHON

MARKETING MAGAZINE OF IIM SHILLONG VOL 2, ISSUE 9

JANUARY 11

COVER STORY: Newsmakers

2010

INTERVIEW: ANJANA VIVEK, FOUNDER OF VENTURE BEAN CONSULTING

FROM THE EDITOR

Dear Readers,
As I write this editorial the screaming headline that caught my attention was the entry of the iPads in India. This gadget has earned the title as the fastest selling gadget ever. Within a year of its launch, it has sold nearly 15 million units, earning close to $10 billion in revenue. It was first launched exactly a year ago in the US on the 27th of January, 2010 and was up for grabs since April 2010. Considering the launch in India has been pretty delayed, also taking into account that it was launched in Hong Kong & Singapore in July 2010. Now why am I talking about the iPad in a marketing magazine? Yes, the brand Apple in itself is a case study in itself for budding marketers. But here am talking about the effect that the iPad/tablets as a product category can have. It has the ability to change the face of marketing. I will tell you why.

The top stories that captured the audience of the consumers, the latest innovations that caught the eyes of advertisers, brand turnarounds, new ideas employed by FMCGs to get closer to the consumer and much more. In Vartalaap, we have Ms. Anjana Vivek, the founder of VentureBean Consulting, a venture consulting firm and a Guest Faculty at IIM Bangalore. She shares her thoughts on the Venture Capital industry in India and the changes that have occurred over time, what are the factors that are considered while funding a new venture and the importance of marketing in the success of a start-up. Hope you like the issue as ever before and looking forward to your precious feedback as always. Signing off and wishing you a happy and prosperous new year once again on behalf of the entire Markathon team. Happy Reading!

Kaushik Subramanian

Our December 2010

Cover Just the game changing nature of the product is mindboggling. Industries as varied as entertainment, media, gaming, business solutions are waiting to see the long term effect of iPad per se and tablets in general with bated breath. An entire ecosystem is getting created around the iPad. Applications for Apple products are a flourishing industry. Most apps available will go pay sometime in the future, creating a new stream of revenues for content producers. Mobile advertising that has been an enigma to advertisers since time immemorial due to the small size of phone screens can now come of age owing to the larger screen size of tablets. For advertisers whose primary complain is their inability to reach out to an increasingly fragmented market, tablets will offer a new opportunity of creating targeted messages for a well defined TG. The introduction of iPad and other tablets sure is going to ensure exciting times ahead for marketers. In this month’s Cover Story we have decided to look upon the most popular newsmakers in the world of marketing.

THE MARKATHON TEAM
EDITOR
Kaushik Subramanian

SUB EDITORS
Debanjana Sinha Samita Patnaik Samrat Singh Yadav Saurabh Kumar Sinha Varshik Nimmagadda

CREATIVE DESIGNERS
Keshav Sahani Priyanka Pandit

MEMBERS
Gaurav Ralhan Jitesh Patel Kaustubh Rawool Rahul Mantri Ritika Nagar Sria Majumdar Sana Parvez Akhtar Yashwanth Reddy Mandipati

2

markathon | january 2011

CONTENTS
FEATURED ARTICLES STRATEGIC ANALYSIS
A lot has happened over a cup of coffee
VIPUL K SAINI | IIFT KOLKATA

4 6 8 11 14 19 22 24 25 26 27 28
3

PERSPECTIVE I
Marketing Trends for the new decade
DEEPA| IIM S

PERSPECTIVE II
Micro Turns Max
PRIYANKA KUMAR, ASHWINI, PATIL | NMIMS UNIVERSITY

PERSPECTIVE III
Top Ten Trends in consumer Research
DR. PREETI KRISHNAN | IBS BANGALORE

COVER STORY News Makers 2010
PRIYANKA DENORONHA | RAGINI IYER | SRIA MAJUMDAR| IIM S

VARTALAAP Anjana Vivek
FOUNDER OF VENTURE BEAN CONSULTING, VENTURE CONSULTING FIRM

PRODUCTOLYSIS Maximum kick to maximize profit
JASJEET SINGH | MDI GURGOAN

WAR ZONE EYE 2 EYE
Tata chemicals has just become the first branded national player in pulses. Will entry into this segemnt, which has so far been avoided by big players, work?
ARUN YADAV | IIT KGP, PAYAL BANGAR | IIM S

SILENT VOICE
Parle must chips relaunch

SPECIALS ADDICTED
KAUSHIK SUBRAMANIAN

RADICAL THOUGHTS
VARSHIK N

UPDATES
JITESH, GAURAV

Does this move qualify as a brand evolution or a revolution? The earlier logo. It has become an identifiable global brand. it makes better business sense to have a more profound logo which showcases the multifarious interests of the company. to find something new and to connect with each other. As one of the members of the Starbucks Facebook fan page wrote. And as always. which has an iconic brand. she is urging all of us forward to the next thing. Like Target. Expectedly. In the following article we try to make sense of this controversial decision to change the logo or to retain the original. officials from Starbucks said"Our new evolution liberates the Siren from the outer ring. Is Starbucks’ change of logo a “subtle but meaningful update” or will it turn into “a hot mess”? 4 . much heated argument has ensued over the new logo and the statement of the company’s PR team that the change is a “subtle but meaningful update” has angered some of its customers. and Nike. In an official statement. Starbucks profits had quadrupled as compared to the year before that. it will not need type to be recognizable. has decided to revamp its image by changing its logo while retaining the old starry experience. who have termed this move as nothing short of “a hot mess”. inviting all of us in to explore. The impact of this decision is already creating waves in the marketing world and an equal number of people are known to be in favour of the new move as well as against it. welcoming face of Starbucks. With the company’s performance currently at its best both financially and commercially. The major question is that. synonymous with its product. does it make sense for a company. which is now proposed to be ditched for a “newer more chic looking one” was the driving force behind the success of Starbucks and helped make it into one of the world’s best recognized brands. Starbucks took a few decades to achieve the brand awareness that it now enjoys and hence they feel that it would be ridiculous to modify or change it in any manner. They also feel that as the company matures and enters into a wider array of business avenues and international markets.“I think it's terrific that Starbucks has set the siren free. They feel that its bold design symbolizes the strong taste and aroma and experience of true coffee. At the beginning of last year. It sounds like Starbucks has done its homework and is being strategic. For people all over the globe.” Likewise. sharing our stories. Starbucks had tripled its profits to over $241 million and by the end of the first quarter of the previous year itself. Now. to modify or drastically change its logo. making her the true. who can resist her?" This statement was received with a mixed bag of emotions. Apple. the coffee pioneer. many in the company feel that it is not obligatory to advertise it at every nook and corner. which is all set to celebrate its ruby anniversary (40th) in March this year. other more conservative ones have adopted a rigid and strong stance against this move and they contend that the existing logo virtually beckons and calls out to them and it identifies intimately with the brand. She stands unbound. After all. she is a signal of the world’s finest coffee — and much more. this change in logo is nothing less than a rude shock for most of its loyal customers who feel that the Starbucks logo is synonymous with a good cup of coffee. Revitalizing is good and healthy if done well.Strategic analysis markathon | january 2011 A lot has happened over a cup of coffee Vipul k saini | iift kolkata Starbucks . Kudos. While a large number of customers supported the move and agreed that the new logo not only looked more attractive but also enhances the brand visibility.

Starbucks has not only become more international in its appearance but also easier to identify with. One of the major constraints encountered by Starbucks was the need to change the written part of the logo.” The green and black combo of the Starbucks logo is so well known worldwide that not only has it encouraged knock-offs but has even been known to have influenced the activists. which. Starbucks’ Logo Over The Years 1971 1992 2011 5 . Whether the new logo will ultimately take Starbucks to newer heights. By doing away with the written word. to design their logos and slogans around it.Strategic analysis markathon | january 2011 Some of them are so angered with the new logo that they have even branded it as the equivalent of a design for an old candle shop. like what happened in the case of Nike and Apple or will it end up like GAP. only time will tell. In addition to simplifying its mark and bringing the siren forward. as per the location and the local language. Starbucks is also planning to revamp some of its old ways and one of the major changes. under market and public pressure. Another loyal fan wrote in to say that . With these major moves to revamp its existing structure and intentions to enter newer sectors and markets. who vehemently protest the addiction of coffee and caffeine. would be the introduction of bone china mugs instead of those chucky mugs. which needed to be modified.“I don't think many consumers ever paid much attention to what was at the centre of the round green and black logo. The company.it's actually the words in the circle with which we identify. had to revert to its older logo. "Releasing the Siren" is releasing something new that resonates very little with most people. That's where Starbuck's error lies -. Plans are also underway to introduce a new mechanism with which customers would be able to make payments through their mobile phones and earn loyalty points which would be redeemable at Starbucks grocery stores. it does make some sense for Starbucks to adopt a new logo. by which an attempt is being made to appear more sophisticated. which earlier sold only coffee is now not only seriously considering offering beer and wine at some of its cafes but is also known to be venturing into the food business.

campaign. it has been observed that consistent efforts over time have had a significant impact on both. There were many important marketing trends that came up in this decade and were highly successful. Some of the most prominent examples were the Tata Tea’s Jaago Re each of them bringing up a different socially significant issue. the Jaago Re campaign by Tata Tea focussed on increasing the involvement of the youth in the electoral process and building a corruption free India. In the Indian context. The fact that ‘class’ and elegance factors. These trends marked a change in the lifestyle. Then there were Idea’s various advertisements. TOI’s Lead India initiative. which dedicated website could be successful. no longer holds true. When celebrities were out there endorsing almost every product that you could think of ranging from cars to fairness creams. Save Paper”. the focus is on some of the important trends discussed below. Some of these came up only recently. already a well-established brand when it came up with this campaign. it is the makeover of the cabin crew of the country’s largest low-cost carrier IndiGo. While Aircel’s “Save our Tigers” campaign came at a time when there were reports that just 1411 tigers were left in India. “Walk When You Talk”. Though the impact of the cause related marketing campaigns both on the brand and social cause enhancement has been debated a lot. But. This was the use of social cause marketing for building and enhancing the brand equity. personality and behaviour of the consumers. Aircel’s Save Tiger advertisements. etc. This can be gauged from the huge popularity and number of visitors on the Jaago Re website. boosted its sales further. Tata Tea. This was the year when almost every airline in the country went in for a change in their cabin crew uniform. It was a perfect example of how cause related marketing along with appropriate print and television advertisements. “Education for All”. However.perspective markathon | january 2011 Marketing Trends for the new decade Deepa | IIM S The end of the year 2010 marked the end of a decade which saw both the rise and the fall of many prominent marketing practices. Each of these campaigns was based on some of the most pressing social issues. only a few of these trends have the potential to survive and be successful in this new decade. “Use Mobile. especially in the service industry are limited by the amount of money. there was one prominent trend in branding that emerged in the decade gone by. This was one trend that became visible in the airline industry in the year 2010. and a 6 .

Over the last few years. It signifies the psychographic change in the customers. The increase in overall spending power of the consumers. both the ‘class’ and elegance effect are clearly visible. IndiGo used the services of the renowned fashion designer Rajesh Pratap Singh and the famous stylist Ambika Pillai to come up with the change. it is promoting itself as a cool and stylish brand. especially those living in the urban areas has resulted in a change in their lifestyle and behaviour. As a part of its rebranding exercise. One major cause of this makeover is the planned launch of its international operations by the end of this year. Projecting itself as a “Cool” brand. and has set out to achieve better cabin ambience which is a very important aspect in services marketing. These changes have further contributed to the popularity of social media marketing and digital marketing. especially in the service industry of India. Its latest campaign tries to project that painting a house is just not another task but rather an activity which requires a lot of involvement and is a cherished experience. The company has tried to strike an emotional chord with the customers and develop a bonding with them. a single piece western tunic outfit complete with hats (the first airline in country to use hats) and scarves has actually signalled the emergence of an entirely new brand type.perspective markathon | january 2011 stands out from the rest. This is visible in its “Surprise your Spouse” advertisements. the demographic as well psychographic profile of consumers has undergone a tremendous change. can result in numerous successful branding campaigns in the coming years not only in the same sectors but also in other sectors thereby once again proving the importance of a good ad campaign for the success of the product or a service. It has ushered a new genre in the service industry. Thus ad campaigners need to come up with different innovative ads to attract the consumers and maintain a relationship with them. these changes are here to stay and will increase in prominence each year. Each of the above mentioned trends highlight the changing costumer tastes and preferences which. In the coming years. The new uniform. However. It has tried to focus on the segment which has the capability and is willing to spend money. if noted properly by other companies. offering value for money to its customers. It focuses on the urban population projecting Royale play more as a décor story rather than a paint story. 7 . An attempt to capitalize on this change has been made by Asian Paints. it is the change in the psychographic profile of the consumers brought out by this makeover which is worth taking notice.

Despite the competition from other players. Neither did any of its existing competitors focus on it. 450 distributors and around 55. With stiff competition in the telecom sector which is still prevalent.000 retailers. Capitalizing on this. Also the highlight of their distribution strategy was that Micromax managed to make these distributors pay in advance by offering them more margins. Micromax comes as a fresh breath of air with its innovative offerings. rather . Below is an attempt to analyze how this brand has managed to capitalize on a price sensitive yet technologically oriented customer of today’s India. a company primarily into distribution and the business of PCOs found itself staring at a really big opportunity when it noticed people had to charge their batteries by lugging it to trucks or even had to pay for charging due to electricity issues in the rural areas. Nokia never built upon this concept. no entrant has been strong enough to pose a threat to Nokia‟s domineering position. Nokia initially had no specific product range customized for the Indian market. Nokia had to change this strategy. Nokia strengthened its position with the launch of Nokia 1100 popularly known as the “Made for India” phone. 8 Micromax is the latest buzzword among cell phone enthusiasts and is perceived today as India‟s answer to Nokia. Ashwini. as the telecom companies slashed prices. Nokia‟s glocalisation strategy seemed to be truly in place. Many companies have been here. A quick reality check and one finds that Micromax happens to be the 3rd largest handset producer closely behind Nokia Samsung and Nokia. operators kept coming up with various offers luring customers to switch loyalties. But once competitors emerged. Micromax was not really a pioneer of this strategy (to offer such kind of discounts for advance payments (cash discounts)). Touted as one of the best examples of understanding consumer needs and developing a product. Micromax launched its first cell phone in the rural Micromax market with a 30 day back up battery at an absolutely unbelievable price. Tapping the rural markets could have proved to be a risky move but the price point and the differentiating features of the model won the battle for Micromax. One of the major challenges of operating in the rural areas were the logistic issues faced but Micromax built a network comprising of 34 super distributors. concentrating on the continuous innovation in coming up with smarter. Who would’ve imagined that an Indian mobile company would manage to grab a whopping 6% market share within two years of its inception! That’s Micromax for you in a nutshell! As the Indian market gets increasingly competitive in the handset category. the only impediment for a person to use a cell phone turned out to be the cost of the phone. Nokia failed to harness the potential of the market that this phone had opened up for it. Micromax. The price conscious Indian thus felt the need to own more than one SIM card in order to leverage the benefits. Micromax was the first to identify this requirement and launched its dual SIM phone opening up more cost effective options for the users in terms of tariff plans. a handset meant for the rural markets.perspective markathon | january 2011 Micro Turns Max Priyanka Parmar. But at the same time. It conquered. done this before so what is that Micromax does so differently that it gets talked about? The cell phone market has evolved considerably since it was first launched in the Indian market about seven years ago. Patil | NMIMS University It came. but it managed to convince the distributors accept this offer. better phones in the premium ranges. They saw. Nokia has always had the first mover‟s advantage in the Indian cell phone market. At the same time.

Cricket being one game which cuts across religion. Operator Branded 3G Handsets. It realized that it was important to cater to the needs of the mid-market customers with the launch of premium handsets rather than simply catering to premium customers. Micromax has now finally begun its brand building exercise in a fullfledged manner with aggressive marketing strategies allocating a budget of around 100 crores.Although Micromax has achieved a substantial market share in the past two years. Several reviewers have criticized the ads for creating noise and missing to communicate the point to the viewer. etc. which include introducing Handsets Switching Networks (GSM – CDMA) using gravity sensor. a closer look at its overall branding strategy shows that the brand has mostly spent heavily on advertising of its individual products. After having gained enough foot hold in the rural and semi urban markets. by huge numbers. They addressed the need of using chat based tools on cell phones. The recent roping in of the celebrity couple Akshay and Twinkle Khanna to endorse their Gamolution and Bling versions respectively is a demonstration of this strategy. 9 . The launch of the Swarovski crystal phone appealed to the low price chic. Also a cell phone working as a universal remote control just exhibited the out of box thinking and workmanship at Micromax making people curious about its forthcoming product ranges.perspective markathon | january 2011 But it is very important to note the fact that he didn‟t stop with this success but ventured further which has led it to its present position. usage and need. It has also begun creating awareness among the youth by tying up with MTV to launch a phone MTV X360 with Yamaha amplifiers targeted at music loving individuals. These models continue to outsell Blackberrys‟ as of today. It has solely sponsored an entire series rather than single matches to break free from the clutter of sponsors that the viewers are exposed to. OMH CDMA Handsets. gender. Also its gaming phone Gameolution has become popular with the youth with its innovative features which works on motion sensor technology and can convert PC/Laptop in gaming device. As Micromax targeted the semi urban and urban markets it launched a series of handsets with innovative features which had never been seen before. incorporating great features and style emerging as a status symbol in the tier 2 and 3 cities. Micromax zeroed down on the next market it wanted to target. The growing middle class residing in the tier 2 and tier 3 cities in the country was no longer content with the lower end product thanks to immense exposure due to the advent of internet and television. Recently. they have sponsored the India cricket series and used innovative technological practices to stand out among the herd of its competitors. age proves to be an ideal platform for promoting a product which has universal appeal. Micromax has essentially become synonymous to innovation. Thus with a lot of firsts to its credit. Noting this. The aspirational QWERTY keypads earlier available only to the high end smart phone users were made available at affordable prices.

China. It is important to understand that every new medium would meet resistance and would take time to gel with the status quo. The brand may boast of being „Nothing like anything‟ but has a long way to go to become everything! It is important to keep this model fresh and rejuvenate it with the changing times. etc since it already has plans to build up its manufacturing capacity in Taiwan. etc. rightly ending with the tagline „nothing is anything‟. 10 . This could be done by packaging it as an add-on phone with child lock and a single dial phone designed to be very simplistic. Though the story so far has been nothing less than phenomenal. With app stores being the talk of the town lately. Hence. the brand targets the rural and the technology conscious urban youth. Similarly. Recently the IPO for Micromax having been approved. the future is only going to get tougher. as this product centric strategy has not proved the most appropriate way to go.perspective markathon | january 2011 Amongst its reputation of being reasonably priced and having a strong product line. Thus. it could also expand its technological expertise to suit the needs of children. the resulting investment would bring forth a great opportunity since the timing cannot be better with people getting more expermentative and mobile usage and development at its helm. But as it competes with the cell phone giants of the world it is questionable whether such advantage can still be sustained. the execution has to be highly precise. which helped it give its customers huge value for money. (for the very first time focuses on the brand as such rather than on an individual handset) shows absolutely unthinkable uses of a cell phone. it becomes extremely critical for a brand of this magnitude to shift focus from individual campaigns to a brand identification exercise. the way ahead is to build an image of being a credible technological handset producer for a price sensitive customer. It could also venture into foreign markets like Middle East. the brand may also suffer from low individual product recall value as the numerous technologies introduced in the different handsets may create confusion in the minds of the consumer. Android based smart phones are a lucrative opportunity to capitalize on. it faces the risk of its technology being easily replicated by other smaller brands. Micromax can innovatively cater to different user application needs across app stores across the world. It could also expand its target audience to the older generation by introducing phones with large keys and a help button. Micromax would also have to focus on erecting customer service centres which are currently not even half as much as Nokia or Samsung has. At the end of the day. The reason is that it is a medium which is catering to the attention span of the people on the move. it was devoid of the overheads like advertising. Ask a Micromax user what he would like to change about the phone. the brand has only recently ventured into overall brand promotion. This conscious move from product awareness to brand building is evident in the latest advertisement by Micromax. Being on the forefront of technological innovation in the handset market. and one is most likely to get a reply stating its „Indian‟ish interface. Currently. Innovation being its core strength. Nothing can be closer to truth than this. Also. it is the people who drive the market. Initially when Micromax entered the markets. etc. With an increasing user base.

perspective markathon | january 2011 Top Ten Trends in Consumer Research Dr.David Glen Mick Consumer research endeavours to gain an understanding of the beliefs. etc. rule-based. attitudes. how. Preeti Krishnan | IBS Bangalore “…in the arc of time. and Fitzsimons. Cohen. Questions addressed included: (a) Where. non-conscious processing involves automatic. and Blazing. 2 Combining Ideas across Domains: This is not a novel ‘ground breaking’ trend. The objective is to assist marketers and researchers to gain a fresh perspective on where the research is headed across the world. Block. behavioural intentions. and associative processing by the consumer. rapid. to virtually every individual. parallel. emotions. For instance. 3 Dual-Process Theories of Processing – Integrating the Conscious with the Non-conscious: Conscious processing involves controlled.” . Several scholars such as Chartrand and Bargh have noted the ubiquity of nonconscious processing. and Bloom. Carmon. USA. preferences. antismoking. on anti-drinking: Szykman. and behaviours of individuals. on products as remedies: Bolton. and aware processing constrained by the working memory. unaware. and Ariely and Irmak. have earned a higher probability of presentations and publications. Crockett. In another instance.. on credit cards: Bernthal. consumer behaviour and the ideology of consumption have diffused across the world to every corner. and Rose. on health: Moorman. A special roundtable session titled “Disseminating Transformative Consumer Research: Getting Research Results Out of the Tower and Into Consumers’ Lives” was conducted at the ACR 2006 Conference at Florida. serial. The following are the top 10 (randomly arranged) trends and directions of consumer research. Much of consumer research has always been about drawing an idea from one domain and applying it in another. and to whom should our research findings be communicated? (b) Who should/could be involved in dissemination of the findings? (c) How can relationships be leveraged to facilitate the information dissemination? Research that would benefit consumers has been strongly encouraged by ACR. 1 Consumer Welfare Agenda: This is the research focus of the US-based Association of Consumer Research (ACR) under the banner of ‘transformative consumer research’. This paper endeavours to present the top 10 global trends in research on consumers as gathered by the author through extensive readings. the placebo effect in medical sciences has been applied to consumer behaviour in the following two journal papers: Shiv. obesity. Shiv. to such an astonishing scale that living and consuming are more complexly interdependent than at any other time in human history. a paper by Ferraro. In contrast. There has been a growing number of journal articles on such topics – some examples are as follows: on eating patterns: paper by Khare and Inman. 11 . and Bettman on mortality salience was apparently triggered by them reading a Wall Street Journal article about people going off diets after the 9/11 tragedy in USA. Topics related to consumer health. Bloom. Such a trend is expected to continue.

a DVD presentation of the research as an accompaniment or a complement to the text. Research on affect has now become the ‘in-thing. For instance. For example. using fMRI. This section of the population is a growing research priority as they represent the next generation of customers. These shifts are: a. to examine how consumers respond to people vs. etc. moderators. 4 Neuroscience and Consumer Behaviour: Sophisticated Functional Magnetic Resonance Imaging (FMRI) scans are used in consumer research to identify the brain sections that are triggered during consumption experience. and special issues.g. brands. Feelings Guide Consumer Judgment and Decision-Making: People often make evaluative 7 Research on Vulnerable Populations: Adolescents and children are classified as vulnerable consumers. Recent trends in research involving children include evaluating how children in singleparent households make decisions on consumption on the basis of love. The study of emotions as mediators. ACR hosted a pre-conference titled “Exploring How Neuroscience Can Inform Consumer Research” to explore how neuroscience could inform consumer behaviour and decision-making and to discuss how neuro-imaging would complement other research methods to advance understanding of consumers. More recently. researchers have combined ideas from neuroscience and brand relationships. 5 ‘Affect plus Cognition’ Models of Consumer Behaviour: There were two critical paradigmatic shifts one in the 1980s and the other in 2001 that have inspired research in emotions/feelings/affect. how children process “on sale” and discounts. priming effects on behaviour. 6 Consumer Research using Visual and Digital Media and Methods: Research will be conducted using visual techniques – video recording. – data collection. The ACR doctoral consortium 2004 had a session devoted to the impact of advertising on vulnerable populations. motivators. apart from the text version. and Culture which was started in 2005 provides.). There has been a growth in publications that will provide options for ‘visual’ journal articles – not plain text. the trend is expected to continue in the years ahead. For example. the journal Consumption. Markets. b.’ Every ACR and Society for Consumer Psychology conference now has sessions allotted to consumer affect and its impact of choice.. non-conscious goal pursuit. etc. ACR conducts regular ‘film festival’ (devoted to research using film technology). Experiential Consumption: The study of consumer behaviour has evolved from an early emphasis on rational choice (microeconomics and classical decision theory) to a focus on apparently irrational buying needs to the use of logical flow models of bounded rationality. movies. and measures in the consumption process will stay as a research focus in the years ahead. it has been argued that much of consumer behaviour is driven by non-conscious processes. Even though not every researcher would be able to access such a methodology. and Connie Pechmann raised the 12 . presentation. It is believed that combining ideas from nonconscious and conscious research domains can be very fruitful (instead of choosing the one that might be most ‘truthful’ between the two). documentaries. coping. mimicry. etc. judgments by monitoring their feelings toward the target which serves as diagnostic pathway to evaluation in judgment and decision making.perspective markathon | january 2011 This idea has led to much research in both consumer behaviour and psychology (e. etc. Efforts have been made to provide an overview of video-graphic methods of consumer research. Richard Netemeyer spoke on childhood obesity and positive adbased campaigns.

resiliency. However. mediating our relation to nature. experiences. Nevertheless. love. hope and optimism. inability to make good decisions. Face to face social life is replaced with commercially and technologically mediated communities. but to provide positive reasons for living as well. etc. the Internet is only one aspect of the techno-culture. MacInnis and De Mello (2005). and opinions. materialism. perhaps. Creativity: Moreau and Dahl (2005).perspective markathon | january 2011 question – would adolescent-focused antismoking messages within TV shows be effective or would these messages have a boomerang effect? 9 Techno-Culture as a Research Domain: Technology is the new ‘habitat for humanity’ – Technology increasingly pervades our lives through new gadgets and machines.e. priming and atmospherics. There is a move towards positive psychology which is predicated on the principle of human strength and the ability to do well. schizophrenia. and buy/use products. etc. online as well as offline. Popular topics include: wisdom. nutrition. and disadvantaged populations. Though such research is still limited. spirituality and forgiveness. haptics and virtual product representation. positive esteem and efficacy. 10 Online Commercial Behaviour: The Internet has revolutionized the way people buy products and services. smoking and substance abuse.). This will continue to have managerial as well as research meaning.. obesity. click-stream modelling. gratitude. etc. unhappiness. flourish. services. open mindedness. Seligman (2002) mentioned that it is not sufficient to just cure depression to keep one from committing suicide. fear. the social environment. hyper-choice. creativity. However. and health. customization. etc. 13 . there needs to be more research on consumers who operate in ‘dual environments. There has been substantial research in this area in the last decade and will continue to be an important domain in the years to come. and other beings. sharing and caring. For example: mp3 players.Hope: Krishnan (2011). multi-channel retailing. For example. mobile technology. courage. compassion. online recommendations and word of mouth. anxiety. internet advertising. more po werful than the suppliers.’ i. and companies has increased market transparency. Power is shifting from producers to consumers who share their knowledge. From this list. Important research streams include internet pricing. etc. information search and decision making. future mindedness. relate. Positive Emotion: Roehm and Roehm (2005). 8 A New Paradigm in Consumer Well-Being – ‘Focus on the Positive’: Popular well-being related topics in consumer research have revolved around topics such as compulsive consumption. Tasks that were once done by humans are being executed by machines. the discipline of psychology itself is undergoing a new paradigmatic shift. The vast and easy availability of information has made the consumers. The growing availability of consumer-generated information on the Internet about products. it appears that consumer well-being has focused on human weakness. Here is a sample of recent research -. trust. and negative consequences (perhaps because we take our cues from psychology which primarily studies maladaptive behaviors such as depression. we should see a move towards the positive. games. anger. Consumer research has seen a similar shift towards positive consumer psychology. There is an entire plethora of gadgets and gizmos in the market that have changed the way people interact. positive emotion. honesty and trust.

the status quo in the world of marketing.cover story markathon |january 2011 NEWSMAKERS Priyanka Denoronha | Ragini Iyer | Sria Majumdar Yet another year has passed us by and we (Team Markathon) couldn’t help but ponder on campaigns and issues that challenged. and sometimes approval you five such topics which made the headlines and earned the critics 14 changed. In this issue. we bring to .

Except for a few worried readers who suspected the chip to be a bomb and hurriedly informed the police. a proven success strategy. with companies considering alternatives to print. made Volkswagen the ‘talking point’ in the country. Volkswagen’s Marketing and PR Head. Over twenty two lakh chips were procured for this one time advertisement that marked the launch of Volkswagen’s 360 degree campaign to promote Vento. said that the idea behind a talking ad was to generate awareness for their new product while instantly establishing an emotional connect with the reader. with its central focus on innovative ads. this new approach of incorporating voice-recorded devices into newspapers. aimed at capturing the attention of the reader 15 . were perplexed by a strange looking chip embedded on the last page of the newspaper.cover story markathon |january 2011 1 When Newspapers Talk Volkswagen Audio chip Ad Lutz Kothe. going by the overwhelming tweets on Twitter What worked for Volkswagen was the surprise element it managed to create for readers who had never experienced the sound medium in print. sought to make an impact in an already crowded automobile industry. A light-sensitive audio chip that switched on automatically when the reader turned to the last page was employed as an advertisement vehicle by Volkswagen to mark the introduction of Vento. Bangalore and Chennai. broadcast and outof-home advertising methods. While the costs involved aren’t precisely known. its entry level luxury sedan in the Indian market. Marketing experts who termed this innovation as ‘groundbreaking’ predict that it could set off a new trend in the advertising industry. the promotional campaign is expected to be budgeted at Rs. The technique focuses on conveying the benefits of the product through greater consumer engagement. 5 crores. this audio advertisement in print. whether Volkswagen’s talking ad will translate into sales for the company. The first ever in India. It remains to be seen. In September 2010. over 25 lakh households in Mumbai. Delhi. however. Creative and effective. The German car manufacturer.

of the company into Motorola Solutions and Motorola Mobility on 4th January. and the aggressive strategy of the company in the smartphone market. During the second quarter of the last year. shape and the sheer R&D that went into the project. in 2007 the mobile phone division of the Motorola Company was making losses again. toiling day and night on a secret project. Razr was a terrific device. The company lost many executives to rivals. We observed that organizations have started taking a closer look at the grass-root level to understand the gap between what the consumers actually need and what is being provided to them. Motorola has a good run for a few years but unfortunately. for the first time in years. The perception of brand Motorola was closely associated with that of analog networks and Motorola was slow to change. The trend that has been started involves the senior16 . With SanjeevJha of Qualcomm taking over Motorola Mobility business. the company reported a profit of $162 million.2 billion in the fourth quarter. which compared when compared to $26 million earned for the same period last year. Gone are the days of courtesy phone calls and emails in the name of market research and pilot testing. As 3 VoxPopuli Ross Perot It seems like a number of organizations have recently got wind of what Ross Perot (of Perot Systems fame) once quoted – ‘Spend a lot of time talking to customers face to face. 2 Motorola’s Turnaround Razr History repeats itself and Motorola has proved it yet again. The handset division recorded a loss of US$1. while the company as a whole earned $100 million during that quarter. is phenomenal. Motorola’s smartphones led by the Droid wreaked havoc for Nokia. In the last couple of years. Motorola took a real blow when the networks changed from analog to digital in the mid-1990s. 2011 promises to be a promising year with the amicable split. The secret to success was a tiny device called the Razr launched in 2003. You'd be amazed how many companies don't listen to their customers’. it won’t be long before each one of us will be vying for that Motorola gadget. earnings of $87 million. An industry leader for decades.cover story markathon |january 2011 smartphones and iPhones started capturing and dominating the mobile phone markets. Its Mobile Devices division reported. which was long time due. Motorola has revived and rejuvenated its brand with the help of Google’s Android. in the last year. revolutionary due to its size. Motorola’s journey in the cell phone market has indeed been a topsy-turvy one. Analyst Mark McKechnie from American Technology Research cynically commented that Motorola "would be lucky to fetch $500 million" for selling its handset business. A new CEO and a closed team. and the web site Trusted Reviews called the company's products repetitive and unimaginative. Moto’s story has been no less than that of a phoenix rising from the ashes. managed to uplift the fortunes of this then struggling company.

The tourism industry typically uses visuals in advertising and more often than not.cover story most officials of the organization. sabsegajabhain". this TVC is difficult to forget. P&G. print and digital to intensify engagement with consumers. RaghuvirYadav. in the words of Santosh Desai (CEO of Futurebrands). consumers are in for a plump bonus. This often reveals more about a consumer and his or her needs when compared to verbal interaction. considering the fact that most of the organizations have finally realized that consumers are the real teachers of brands and the road ahead would be much more consumer-centric. The consumers are involved in some creative activities like collage on themes that connect with the brand. All the senior managers are expected to spend at least fifteen minutes a week addressing the consumer’s concerns or making note of the suggestions given. HUL has taken personal involvement a level higher by establishing a small phone booth called ‘voices from the street’ in its plush head office. connect with the customers and the viewers on a different level. the shadows of hands and arms. there are definitely more in the pipeline. Most of these organizations are innovating continuously to measure the consumer’s pulse and the recent initiative taken up by Hindustan Unilever Ltd is testimony to this fact. our current television commercial stays true to the fact that we Indians love our song and dance. Madhya Pradesh himself. who is a native of Jabalpur. A note from the agency said. These personal visits are not the clichéd chats. they end up looking homogenous. but is almost non-existent today. The TVC is the third in a series of MP Tourism advertisements. markathon |january 2011 4 MP AjabHain! MP tourism Picture a typical advertisement for the famous Incredible India campaign and you can easily visualize the lush photography and gliding scenic views of the wonderful Kerala or the picturesque North Eastern India. However. They take time out to interact with consumers in person. the recall is very high. Marico. It is more popular in the FMCG sector where senior management of Pepsico. to the words of the jingle "MP ajabhain. Shadowgraphy is believed to be an art form that originated in India and can be found in a Tamil Classic Shilappadikaaram. While one can count such initiatives. which utilises radio. Madhya Pradesh Tourism’s commercial created by Ogilvy and Mather. Hence. The fresh language and vocabulary. The commercial captures key landmarks and wildlife of the state in a 17 . and much like the previous campaign where eyes talked about the state. brings a twist to the tale. It's an art form of storytelling that goes very well with the rustic aura of Madhya Pradesh. Needless to say. communicates more than pictures ever could. Future Group and other such corporate honchos claim that personal visits have opened up a sea of opportunities. The TVC is supported by a 360-degree campaign. The creative execution employs the talents of shadow artists from Bengal. The exquisitely done commercial using the ancient art of shadowgraphy or ombromanie (the art of performing a story using images made by hand shadows). This has led to bridging service gaps and has also helped in identifying new markets. launching new products and improving the existing ones. take the shape of animals. In the commercial.” The television jingle has been sung by famous film and television actor. trees and monuments of the state. "Like in the past. They have gone to the extent of including this exercise as an attribute in the performance appraisal procedure of the managers. birds. So far they have gained some valuable insights and the same have been incorporated in their offerings such as the instructions on the Dove Serum. This kind of consumer interaction is more prevalent in the automobile sector.

However. Some have gone as far as to suggest that the IPL maybe the Superbowl equivalent of advertising in India. thus making it imperative for companies to use techniques to get noticed amidst the crowd.cover story stark manner against a simple white screen. It’s definitely a treat markathon |january 2011 Television commercials with a viewership as high as 2 billion (naturally at exorbitant costs). If you have not seen it yet. coupled with the anticipated increase in ad cluttering. Additionally. lesser known brands like Karbonn. Smaller advertisers view IPL as a newer and faster avenue to generate brand awareness. Karbonn tied up with IPL to become the official mobile partner. 5 lakhs. the TVC definitely carved a niche for itself. As far as differentiation is concerned. Nokia. With a brand value approximated at $4. but also signed up to sponsor all IPL cricketing properties post IPL. experts question the real impact of cricket advertising on the perceived brand value of lesser known companies. Pepsi and MTV (through its post-match IPL parties) managed to achieve significant brand recall. the result being that IPL advertising is often cluttered with a large number of companies vying for customer attention. has led to the need for brands to assess the effectiveness of advertising. what excited brands tremendously was the prospect of getting noticed at the live telecasting on Youtube. the image of brand IPL changes with the choice of players each season and the composition of various teams. . Premium sponsors like Royal Challengers. meant siphoning off a significant chunk of the company’s advertising budget to the IPL. Micromax. With practically every IPL property being monetised and television viewers being flooded with visuals and promotions. 18 for the eyes. Ormax Media will be offering consulting services in Season 4 through its ‘Day After Cricket’ product to gauge the impact of advertisements after the event. Companies looked at making clever sponsorship deals. Advertisers look forward to the IPL just as much as the fiercest cricket fan does. Samsung. While DLF. Whatever may be the results of an assessment of this type.13 billion in 2010. As little as ten seconds of premium time costing close to Rs. probably very few other ads stand out or have become viral. were hugely popular and were typically in the 10 second duration range (compared to the usual 45 or 60 second duration commercials). It was to organize spectator contests between innings breaks. despite the large number of advertisements specifically designed for the event. and frequent advertising. 5 Brand IPL IPL Cricket League The IPL is no longer a professional Twenty20 cricket league alone. HSBC India and HP India used every opportunity to build brand equity. Yet. maybe it time you looked it up on Youtube. but also lesser known brands from across the country. used not just celebrity advertisements to advance its brand awareness. the Indian Premier League will continue to remain a big property for years to come and will continue to lure both big and small brands to advertise with them. to be apt to launch new products. one wonders if a relatively unknown brand can truly achieve brand recall over and above the din. this lucrative cricketing event not just attracts large sponsors like DLF. India’s third-largest GSM mobile phone vendor. This reliance on sporting events to establish a brand name is increasing by the day. In addition. This. increase visibility and enhance brand recall. except for Vodafone’s Zoozoo ad campaign. consider sporting events of the magnitude and popularity of IPL.

Markathon: If you were asked to pick one moment/ incident which changed your career or the way you did business. I can still remember the thrill of that moment when I saw my results. She is a chartered accountant who works with VCs and business leaders in the areas of business planning and strategy. Something else which stands out is a couple of mails from students who have thanked me for making an impact on their lives. I think there were a few significant events which made me take a relook at who I am and what I can achieve Mrs. Other positions held by her include Vice President.vartalaap markathon | january 2011 An Interview with Anjana Vivek founder of VentureBean Consulting. This self-discovery is propelled by an urge to dig deeper to understand what motivates me and gives me true joy. a venture consulting firm Anjana Vivek is the founder of VentureBean Consulting. learnings and gives advice to young entrepreneurs who want to market their business ideas. a venture consulting firm and a Guest Faculty IIM Bangalore. In this interview. Corporate Advisory Services. How have you enjoyed your journey through these diverse assignments? Ms. Ernst & Young Private Ltd. she talks about her career. heading the due diligence practice in South India and COO of the Entrepreneurial Centre at IIM Bangalore – NSRCEL. Markathon: A Bsc in Physics from Delhi University. what would it be? Rather than one moment/incident which impacted the way I do business. Anjana: In the past there were a limited number of VCs investing in Indian companies. and I thank God for giving me the courage to be myself in today’s volatile business environment. despite having no degree other than a CA. I have discovered more about my interests and what I can do and cannot. Each role has helped me understand what I like to do and how I want to work. VCs typically 19 . Anjana: The single most joyful moment in my professional life was when I realized I had passed the CA exam. It is these incidents which have strengthened my belief that hard work and merit. This is what I have enjoyed about my life journey till date. I still have miles to go on this voyage of discovery. a professor in Finance and then to consulting and working with venture capitalists and investors. Markathon: You have been associated with the Venture Capital industry in India for a long time now.. The first was getting into a senior role in a Big four consulting firm after a few years of flexi-time work. without compromising on ethics does indeed pay. I felt that I could conquer the world. She is an author of three books and a widely read blog and is now writing a column for DARE magazine on women entrepreneurship. What major transformations have occurred and how do you see Venture Capital in the near future? Ms. becoming a Chartered Accountant. Anjana: At each stage of my journey. Another was being invited to teach as a Finance Professor.

their ability to think on their feet and their reason for venturing into their own business. Thus I would look at capabilities as well as skill sets and value systems.e.vartalaap favour select industries to fund. Human beings measure weight. Many investors. They provide a range of services. their interest in running a venture. there will be more VC funding available and a variety of investors.e. with different advantages and benefits. What do you think is the reason for these failures? Any common thread running across all of them? Ms. The aim to make this a successful business venture (i. markathon | january 2011 Markathon: How big a role does Marketing play when it comes to the success of a new business idea? Ms. Anjana: a) The core founding team. In the future. yes in one sense the industry has grown. things are very different. 20 . c) The approach taken by the start-up to create value. Sometimes fund raising can take 6-9 months and takes away precious time from business activity.e. The majority of the failures do not come from big things but from little factors that one does not pay attention to Some examples: The key to success is to offer what someone (a customer) wants or perceives she wants and not sell what you can sell. The investment amount ranges from a few lakhs to several crores. Thinking short term instead of long term: Many times one may just act without thinking through the impact of decisions. Markathon: There are a lot of good ideas. If people do not discover that the product/service exists. If someone tries to market without have a good quality offering. to large VC and Private Equity funds. including factors such as the capabilities of the team. Often entrepreneurs do not bother to collect what is due to them and focus only on delivery and sales. A good product or service is the foundation. there may be no one to pay for it. cholesterol etc. If a particular industry was a favourite of the season. i. from funding to mentoring to helping in the operations if required. It is difficult to fool all the customers all the time. why would a customer pay for the product and/or service. Many times basic things are missed out. sugar. BP. formal and informal have entered the market. but not all good ideas make good business. Keeping a close watch on money and spending: Billing and collecting. b) The market that is being addressed or new market that one is attempting to create. What are the 3 top things you would look at when funding an entrepreneurial venture? Ms. periodically. It is good to set aside time to periodically measure and monitor what is happening in the business and then set in place an action plan that can be dynamically modified. i. Anjana: Marketing is the key. if you are an entrepreneur. Today. So. plus their value systems and integrity. This could be something that is intangible and may not be easily measurable. typically high net worth individuals and entrepreneurs who have been successful in the past. there is still no guarantee that the money will be raised. Companies also need to be monitored to see if they are in good health. This ranges from angel investors. At the end of this. then however good it is. what makes the entrepreneurs stand out amidst the clutter? This could be their ability to be innovative or thinking differently or just their approach to the whole aspect. without which marketing cannot stand up. Anjana:. But in another sense. create value in the long term) etc. then in time this can fail. several investors wanted to fund it. it is still not so easy to get money. and entrepreneurs in other industries found few takers. Markathon: Funding a new start up is considered to be a subjective decision.

for any deal.slideshare. i. this is the PBRT frame work: a) People: This is the key. 21 . As value is created. Anjana: I have a put together a framework that helps view any investment/M&A decision. it may be preferable to take smaller sums of money (seed capital) from angel investors and other early stage investors. corporate vs.e. you need to study and have merit in order to get through. where do you want to be in 15 years? Give reign to your imagination. successful entrepreneurs are decision makers. Sometimes investors can deplete value.net/anjanavivek c) Regulatory: Many times people neglect regulations and their impact on business. So if the graduates are interested in looking for VC funding. then they can introspect and plan. business model. profits. Where do you want to be in 3-5 years? Finally. if someone with a negative reputation invests in a company. for a small stake in the company.e. market. despite them bringing money into the company. profit after tax) in the case of a company. So if one is trying to raise money. What are your dreams for yourself. Then come down to earth.vartalaap In summary if entrepreneurs keep aside time to think. Keep an eye on value created and the value drivers and risks of the business. b) Business: Look at the business angle. they must first look at the background of the investors. value creation etc. the promoters will also be tarred with the same brush. It is like taking an entrance exam. Markathon: What would be your advice to young graduates wanting to start their own business and looking for funding from a VC firm? Ms. they lead and others follow. one must do one’s homework on what the money is going to be needed for and who may be a good fit as an investor. So I would suggest. marketing plans etc. In the initial days of the business. this is the foundation. i. in the eagerness to get money today. A note on writing a business plan is available for download at www. more equity can be markathon | january 2011 diluted for larger amounts of money from VCs. product/service details. would they be a value add to the start-up. there are several formats and tools available today. financials (in a start-up much data is not there so that they can list different scenarios from pessimistic to expected to optimistic). do not lose out on your tomorrows.e. The IPL saga of sweat equity. revenue. d) Time: Review your plans across multiple time frames for improving the quality of your planning. foreign investment etc. is an example of this. Just like you look at the PAT (Bottom line. when value is yet to be created. After all. This can help them fix things that are in their control. The graduates can attempt to write a business plan. partnership and the legal and tax impact of getting funding and giving away equity for mentoring etc. on paper. One must approach a potential investor only after preparation. The plan may just be a summary one. Think through the business structure i. Some details of what they can put in the plan are the team. thinking helps one in decision making. There are enough stories of entrepreneurs who have struggled and succeeded without much money in the initial days. what are the actions you need to take today if your business is to survive for 3-5 years? What is essential to do today to survive? While no framework helps one have all the answers and no amount of planning can guarantee success. For example. money add is not value add.

‘Be Young. Drink Pepsi’ and ‘Yeh hai Youngistaan Meri Jaan!’ 22 . it is planning to sell both the products simultaneously for now. The campaign includes creating an image of customer who is an ‘Urbane daredevil’. The tagline goes “Maximum Kicks. 000cr branded beverage market in India. No Sugar. It is looking to attract a target audience of 25 – 30 years old. Pepsi was one of the first to tap into this market with the ‘Pepsi Generation’ campaign. Here are a few examples . After giving us the ‘Youngistan’ campaign in 2008 it has decided to further segment the market and target the youth who is fitness conscious and is looking for a strong attitude quotient in its drinks and thus came ‘Pepsi Max’. While Pepsi has Diet Pepsi in this segment. It has proved in the principle of catching them young to earn maximum profits.‘Now It’s Pepsi For Those Who Think Young’. It has not looked back since then and is successfully clocking a growth rate of over 20 percent in the country. The campaign was effective in eclipsing the ‘Coke Set’ as a symbol of youth. ‘Taste the difference -Generation Next’. ‘Come Alive! You’re In The Pepsi Generation’. the 330 ml can Rs25 and the 500 ml PET Rs25.  Moreover youthfulness is an appeal to which many older and younger consumers easily respond. The brand has since then been rolled out in over 40 countries.” Other taglines that have been associated with the product are “Maximum tastes. widening its product portfolio in the Rs.10. Pepsi will also start a ‘disruptive’ campaign focusing on men in 2535 age groups exhorting them to maximize every moment of their lives. Max was first introduced in UK in 1993 in a differentiated black pack. Pepsi came to India in 1989. Marketing to the youth is a focal point of this market strategy for three principle reasons  It is a legitimate market of considerable size in its own right  The purchasing pattern people form when they are young extend far into their lifetime Youth influence the purchasing behavior of older individuals in the family Marketing . Have Fun. ‘Target the Young’ . But Pepsi has shown that it is not wasteful to concentrate on young. its major challenge then was to introduce a ‘Cola Culture’ into the country. Marketers define ‘Youthfulness as a nostalgic and fantasized state of looking and feeling young without having any of the cares and concerns that the youth actually faces”.Creating Acts not Ads Pepsi Max is being launched with much fanfare. No Sugar” and “Don’t worry there’s no Sugar”. Over the years Pepsi has had some delightful taglines attracting the young. Pepsi has now further decided to segment this market based to target young men between 25-35 years. This has a strong appeal to older and younger individuals.An Enduring Legacy George Bernard Shaw said “Youth is wasted on the young”.productolysis markathon | january 2011 Maximum kick to maximize profit? Jasjeet singh | MDI gurgoan PepsiCo recently announced the launch of Pepsi Max – a zero calorie no sugar cola. The 250 ml ‘Can’will carry an introductory price of Rs15. It is currently a major player for customers from 18 to 60.

The same can be seen from the expansion plans from Pepsi. Now it has decided to double its arsenal with Max. Guys Go play. While Diet Pepsi is currently available at around 5000 outlets in Delhi. It refers to inducing a belief in general audience’s mind that this product is somehow different. The amount of energy it gives after a ‘Can’ is comparable to Red bull. In keeping with this positioning it has already decided to take out all its cola products from schools by 2012. Coca-Cola too has plans of entering in India soon. Segmentation versus Differentiation Product differentiation consists of making claims that ones product is superior to competitors in serving the desires and needs of all target consumers. If and when coke launches ‘Zero’ it will have to play the catch up game with Pepsi in the ‘lads market’. Add to the fact that Max is sugar few and has 2 23 . The Last Word The flavor of Pepsi Max is unique. The only natural ingredient of Pepsi Max is water which is carbonated. One very interesting feedback I got was “Men Can drink Pepsi Max with Pride”. Pepsi’s major competitor in India is Thumbs up. So it increases the focus on the group which is health conscious and is seeking healthier options. Fight Later Globally Max competes with Coke Zero.” Another issue with diet Pepsi is its image of being a women product in India. Launch First. It also contains Gingseng (a high energy source). zero calories. A question which comes to the mind is “Why a zero calorie variant when PepsiCo already has Diet Pepsi?” After all. In its place it will promote health foods in schools in an effort to burnish its image of being a ‘health conscious’ and ‘responsible’. Battling the demons within Another big competitor for Max is Pepsi’s own Diet Pepsi. The total market share being just one percent of the total beverage sales of 650 million cases a year. Coca-Cola’s no sugar variant which is five times the size of max. the diet cola category is not doing very well in India. It is fair to say. But Pepsi believes “Diet Pepsi 1 seems like a product one would consume when one is concerned about sugar.productolysis markathon | january 2011 A Repositioning Strategy Pepsi is repositioning itself as a healthy beverage company. Thumbs up has been traditionally targeting the youth who’s looking for a strong attitude in his beverage options but is not willing to compromise on taste. Max is going to be available in 30. It does not taste like diet Pepsi nor does it taste like normal Pepsi. but launching Max first gives Pepsi the first mover advantage. Pepsi agrees that max may cannibalize its market but believes it will help the overall category grow. Pepsi Max is also looking to target a large set of consumers. A similar strategy was applied by Pepsi in the Middle East where the growth in Pepsi Max in the last year is 2/3 of the size of the whole of Coke Zero.000 outlets. Pepsi Max intends to capture into its market by injecting a lot more cola attitude and imagery. It had already taken a step in this direction with the launch of ‘Nimbooz’. that if natural ingredients are what you look for in a drink Pepsi Max should be avoided.

Include your picture (JPEG format) with the entry. its subsidiary. and quantity of pulses at pre-determined rates. if the farmers side-sells their products in the market rather than selling to Tata Chemicals as per the contract. schedule and quality levels. Tata Salt-iShakti distribution chain currently spans 1. they touch the lives of over 5 million farmers across the country. Also. 24 . The main difference is due to the inefficiencies of supply chain. Governance is major issue and the final profit margin will be very low. farmers get only 50% of what their produce costs in the retail market. Topic for the next issue’s Eye to Eye:“Is the launch of six new World Cup flavours by Lay’s justified or would it confuse the brand loyal customers?” Your opinion (view/counterview) is invited. which has so far been avoided by big players. The main business of the company comes from fertilizers and chemicals. is also expected to grow. the demand for non-cereal food. Will entry into this segemnt. Due to these problems faced by the company it will not be feasible for Tata Chemicals to go for selling of pulses by contract farming. Last date of sending entries is 20th February 2011. Tata will have the first mover’s advantage too. has a customer relationship programme called KisanKutumb in Southern and Western India. They can also reap the benefits of having a strong supply chain. Needless to say.Tata chemicals can teach farmers to increase their productivity by using good seeds and fertilizers.5 million outlets. Tata Chemicals forays into the selling of pulses under the “i-Shakti” brand extending from salt.5 million tons for the current year while demand is around 18 million tons. “It is not a feasible option for Tata Chemicals because of the demerits of contract farming” Another frequent problem that arises is that the farmers use the inputs supplied for other cash and subsistence crops. work? “The decision taken by Tata Chemicals is justified since they have a good presence in the FMCG market” Let’s begin by exploring the current market condition for pulses. As the income increases. All the following arguments support the move taken by Tata Chemicals but the final fate is always decided by the market itself. The primary problem that may arise is. Rallis. the Retail sector is not organized specially for sale of the pulses etc. Together. and hence the demand for pulses. Another reason for the side-selling is that the other buyers generally pay in cash which is a more lucrative offer than waiting for prolonged periods for money to be paid through the proper channels by the company.Tata Chemicals has 690 rural outlets known by KisanSansar in the Northern and Eastern parts of the country. This would involve in them going for contract farming. Low productivity of farmers is another problem which further reduces their income. India’s pulses production is around 16. however in India contract farming has more demerits than merits that it can boast of.After paying the cut to middleman. This concept is not new in the agro-industry. The entrance of Tata Chemicals into the pulses market can be well justified as they have good presence in the FMCG market through Tata Salt and its variants.This gap is currently bridged through imports. Word limit is 250-300. This will be a clear loss for the company as the crop yields will be reduced and the quality will be affected.war zone | eye 2 eye markathon | january 2011 Tata chemicals has just become the first branded national player in pulses. hence customer perception will have to be changed. The selling can be done to either a different buyer or another competing company offering a price higher than that specified in the contract.providing the farmers with the necessary Payal Bangar production inputs like IIM S seeds. The per capita income Arun Yadav of India is increasing at a fast IIT KGP pace. It will help them to reduce the total cost involved.fertilizers etc.

com Send your entry in JPEG format named as SilentVoice_<Your Name>_<Institute> only.Indian Subcontinent” LAST DATE OF SENDING THE PRINT AD: 17th February. 25 .war zone | silent voice markathon | january 2011 Silent Voice LAST MONTH’S RESULTS Theme: “Parle Musst Chips Relaunch” WINNER: NITIN VARMA| BIM Congratulations!!! Nitin receives a cash prize of Rs 500! RUNNER UP APOORVA AGARWAL | IMT.iims@gmail. NAGPUR NEXT THEME FOR SILENT VOICE: “Cricket World Cup 2011. 2011 EMAIL ID: markathon.

specials | ADdicted markathon | january 2011 Ad-dicted Kaushik Subramanian | iim s PRODUCT #1: Surf Excel TARGET AUDIENCE: Mothers of children with the message that Surf Excel cleans any stains POSITIONING: “Daag Achche Hai” Continue in their series of “Dirt is good” campaign. this ad has been a rage on Facebook right from January 26th. 26 . that of language being no barrier. one has the right to sing the national Anthem in his/her own special way. The small boy comes to their rescue and says that they were practicing for the sack race and he jumps into a puddle of mud. but I definitely feel it has struck the right chords with the one who matter i. The ad succeeds in conveying the core message. presenting the National Anthem in sign language and through gestures. his classmates feel ashamed. thus sending out the message that despite impairment. The film shows children with hearing and speech disabilities. Immediately his classmates make fun of him and pull down his trousers completely.e. It strikes the emotional chords of the viewers. but should unite us on the contrary. VERDICT: Thumbs up!!! If anything is a sign to go by. the end consumer.2011 the day it was released in BIG cinemas. CONCEPT: PRODUCT #2: BIG Cinemas TARGET AUDIENCE: All Indians and make them reflect and ponder upon what patriotism to them means. A teacher passes by and admonishes the kids. That diverse languages and culture has no role in dividing our nation. VERDICT: Thumbs Up! The ad is sure to appeal to consumers across age groups. ask forgiveness and pull down their pants and jump into the mud. “Daag achche hain” campaign has been a runaway success so far for HUL and they seem to have played the right card yet again. POSITIONING: 'Patriotism knows no language' CONCEPT: This film opens with a small boy walking across some of his friends tugging along his pants as they seem to be loose. Children have acted in it. After the teacher leaves. There are some industry insiders who feel the ad has not lived up to its predecessors in this series.

If there is one product that has impacted the world more than anything else and changed billions of lives it has to be democracy. This change of power has tremendous implication especially in the Middle East where people have coordinated and orchestrated protests to enable a change of their governments. Ask any marketing student to name the most successful product in history and you will get a wide variety of answers ranging from the i-pad to the windows operating system to Coca-Cola. My initial conception of the column has weighed me down and made the column too narrow minded in its focus. “Everything is marketing!” Let us use this column to explore whether that is indeed true. The product called democracy has been packaged and sold in nearly a 100 countries worldwide to a wide variety of people and today to say that there is a more widely adopted product would be a mistake. According to this logic democracy should have no challengers at all. empires etc. But it appears that the world has changed and with the rise of social networks. But they would all be wrong. democracy is competing with other products like autocracy. the flow of information and military power. The critical thing to understand here is that throughout human history there existed an elite set of people who had a significantly greater purchasing power than the mass of human beings as such they controlled the adoption of the form of government. Two of these components have essentially remained the same over the last twenty years but one has changed i. Purchasing power would consist of the ability to control economic power. Getting subject topics to write on has become so difficult that this is always the last column to be submitted for editing and this after the many requests and orders from my long suffering editor.e. | IIM S This column has gotten too difficult for me. But something seems to have changed in the last twenty years as the number of democracies increased from 69 in 1990 to nearly 120 today. the oligarchy no longer has the power to control the flow of information and this has decreased the purchasing power of the elite and made for a more level playing field and thus the ability to choose a form of government has become accessible to a greater set of people making democracy the best product in the market.specials | radical thoughts markathon | january 2011 The dance of democracy? Varshik N. one in which the voice of the majority would not shut it down. To understand this change we have to understand the changes in the components of the purchasing power in this context. It was primarily conceived as a place where the counterview would always find a space. However an Economist report states that the number of democratic countries in the world has actually decreased over the years and a corresponding increase was seen in the number of autocracies. 27 . As my professor once remarked. these people would not have the power to affect the adoption of democracy. Hence I have decided to make the column broader in its scope and place it as a forum to critically examine issues and ideas from a marketing standpoint specially ones that seem to have no connection to the world of marketing. Thus the democratic way of life seems to be under attack and it is important to understand and analyze the drivers for the adoption of different forms of government. It is a marketing truism that all other things being equal the product that gives the consumers what they require would be the most successful product and the product description of democracy itself seems to be tailored for satisfying the individual needs of the consumers. But if a person or a group of people who desire domination have a much higher purchasing power than the normal then they would play a significant role in the adoption of other forms of government resulting in the formation of an oligarchy. dictatorships. But we have to understand that while democracy does satisfy the needs of a vast majority of people there do exist a small set of people whose primary buying criteria would not be individual liberty but domination over others. In an ideal world where each person is equal. everyone and his mom seem to have a voice and a forum to express their own opinions. If the different forms of government were an industry. for adoption. This sort of movement where the protest are not led by some leader but by the ordinary people marks a significant shift in the power equations of the world and will eventually lead to democracy becoming the dominant product of the age.

HUL Pureit launched globally HUL plans to enter the international water purifying market with its innovative product Pureit. The Ford Figo has also won many awards and now Ford India plans to export the car to another 48 countries. REPOSITIONING Flipkart got a new logo Flipkart started as an online bookstore but with changes in its business model. South Africa and other parts of Asia. has included movies and mobiles in its product offerings. 3 year endorsement deal. The company posted sales of 83. Sachin will be used for Coca Cola’s corporate initiatives and CSR activities as he is seen as a trustworthy. Tata has also offered extended warranty for all Nano cars to take attention off some of the quality issues that had arisen. Early this month Flipkart has changed its logo along with other brand elements like colour scheme etc. INDUSTRY WATCH Apple / Management reshuffle Apple CEO Steve Jobs has taken an indefinite leave from the company citing health reasons. MNP comes into effect on Jan 20th and the operators have already launched campaigns letting the customer know of its benefits. The company has yet to confirm the report but the media is abuzz with the news.specials | updates markathon | january 2011 Sachin Tendulkar has reportedly been signed on by Coke for Rs 20 crore. Mobile Number Portability launched Mobile Number Portability is turning the telecom space into a hotbed of activity with every company wanting to capitalize on the service. BRANDWATCH Sachin the “happiness ambassador” 28 . With the success in Indian Market HUL now plans to introduce Pureit in to the international markets like Europe. This period will reveal Apple’s resilience in working without their top man. The charismatic CEO had earlier taken leave for cancer. This has made Tata Motors revamp the marketing campaign and made them lot more aggressive. in terms of attracting customers . laptop etc. Figo is reviving Ford's fortunes in India and has helped the company post a record growth of 184% year on year. Idea was the first to come out with a campaign and since then has been followed by Vodafone. Apple’s profits surged a massive 90% in Q4 of 2010. remains to be seen. PepsiCo had earlier dropped Sachin and went in for much younger brand ambassadors in RanbirKapoor and DeepikaPadukone. Nano Revamp The Tata Nano which aimed to revolutionise the automobile market in India faced a massive slump in the month of November with less than 600 units sold. How effective Mobile Number Portability is. reliable and responsible person. This news came out one day after reports of Steve Jobs’ leave of absence. Steve Jobs is seen as the man responsible for turning around Apple’s fortunes and making it into the pioneer it is today.e TV. Ford Figo steering the sales for Ford India Ford India has seen a tremendous performance in the year 2010. There are a lot more Tata Nano advertisements in the print media as well as billboards. Apple will have to work hard to continue this upward trend but they also have an advantage with updates on the iPad and the itouch in the pipeline. The rebranding after just three years into the business is very early but was needed as they have made significant changes in their business model and is soon expected to move into selling consumer electronic i.000 units from Jan-Dec 2010 on the back of a robust performance by Ford Figo.

” says Irani whose team visited several countries where the group operates before taking the final decision. Pepsi’s Change the Game’ for Cricket World Cup With Cricket World Cup approaching near Pepsi the official cola sponsor for the world cup has launched its new campaign to catch on the riding cricket fever. 1000 & a letter of appreciation. The best entry will receive a letter of appreciation and a cash prize of Rs 1000/-. ~ Jitesh Patel. Rise for Mahindra Mahindra and Mahindra have launched a new Brand repositioning initiative as the company increases its global footprint. • International Column: Articles covering latest marketing trends. Apart from above. Gaurav Ralhan AD WATCH Castrol new commercial with Sachin Castrol India has launched its new Cricket World Cup 2011 advertising campaign featuring none other than the master blaster Sachin Tendulkar to cash on the Articles Are invited “Best Article”:Deepa Syal. World Cup campaign in the country where cricket is considered as a second religion that too with the master himself. innovative practices. Taproot India was appointed to conceptualize the World Cup campaign. The Castrol’s brand new television advertisement announced its ‘Castrol World Cup ka Hero’ contest as part of its consumer activation programme. IIM Shillong She receives a cash prize of Rs. The format of the file should be MS Word doc/docx. The company is to invest Rs.com. • Strategic Analysis: A complete analysis of the marketing strategy of any company or an event. in the global perspective. 29 . The last date of receiving all entries is 17th February 2011. seems to be a good strategic move by Castrol. 120 crore over the next three years in its new brand repositioning campaign. • Productolysis: Analysis of a product from the point of view of marketing. The whole campaign is focused to change the image of the company to “tomorrow’s company”. According to Pepsi it’s all about the change and so is with the sport cricket.iims@gmail. Please send your entries marked as <ARTICLE NAME>_<SENDERS’ NAMES>_<INSTITUTE> to markathon. Everyone has the aspiration to rise above their lot. out of the box views related to marketing are also welcome.specials | updates markathon | january 2011 cricket fever in the country. We are inviting articles from all the B-schools of India. “Change the Game” campaign is to reflect the way cricket is played and watched all across the world. branding strategies etc. The articles can be specific to the regular sections of Markathon which includes: • Perspective: Articles related to development of latest trends in marketing arena. “We found that it resonated with people everywhere. However JWT India is still the creative partner of PepsiCo India.

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