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					                    The Looking Glass
                                      a Pan IIM Initiative
                                                     Vol 2, November 2010


Dear Readers,

It gives us immense pleasure to bring out the second edition of the PAN-IIM marketing digest, with a joint effort by
the marketing clubs of IIMs A, B, C and L.

We would like to thank all those who were involved in taking the digest to the completion stage. There was a
tremendous amount of co-ordination and synchronization put in by the marketing clubs of the 4 IIMs. We are
especially thankful to the faculty who guided and encouraged us at various stages of development of this magazine.

Please do send us your feedback at looking.glass.mag@gmail.com

Yours Truly,
Team Looking Glass



In this edition                                                                       Pan IIM Team
New Product Launch – Lessons From Microsoft Kin                 Page 2
                                                                               Ayshwarya R. Vikram           IIMA
Kids’ Power - The Hallowed Art of Persuasion                    Page 5
                                                                               Saurab Nair                   IIMA
Indianizing - The Pepsico Way                                   Page 8
                                                                               Prabhakar PJ                  IIMB
Advergaming:A Silver Bullet Or Just Another Arrow In The Quiver Page 10
                                                                               Tamanna Padhi                 IIMB
The Brand is Not Enough                                         Page 14
                                                                               Brijesh Unnithan              IIMC
The Tipping Point of Creativity                                 Page 16

Social Media Marketing: The Next Big Thing                      Page 19        Pratik Prakash                IIMC

The Apple STOREy                                                Page 22        Pankaj Rawat                  IIML

Ambush Marketing - Ethical or Unethical                         Page 24        Vignesh Rajan                 IIML

Tip-Tap-Toe: Classic or Arcade                                  Page 27        Pooja Pangtey                 IIML
Cloud Marketing                                                 Page 30

Quizzes                                                         Page 9, 23

Identify the Personality                                        Page 4          Dare2Compete.com –Online Marketing
                                                                                             Partner
                           The Looking Glass

                               NEW PRODUCT LAUNCH – LESSONS FROM
                                        MICROSOFT KIN

                            Abstract                                 companies that wish to successfully
                                                                     launch new products. The product
                            What determines the success or
                                                                     may be packed with features and it
                            failure of a new product launch? Why
                                                                     may be promoted powerfully, but if it
                            do even established, experienced
                                                                     does not answer the target segment’s
                            companies get it wrong? This article
                                                                     needs, then nothing (pricing,
                            looks at the launch and subsequent
                                                                     packaging or plain-old advertising)
                            withdrawal of Kin – Microsoft’s
                                                                     can sell it.
    ABOUT THE               smart phone-like device aimed at the
                            youth segment – all during a time-       The Product
     AUTHOR
                            span of about two months from April
                            to June 2010. It aims to probe on the    Microsoft’s Kin was proposed to be
Priya Narayanan is a 2nd
                            reasons for the failure of this new      “the ultimate social experience that
year PGP student at IIM                                              blends the phone, online services and
                            launch. Did the product not live up to
Ahmedabad. She holds a                                               the PC” into one. Three “new”
                            what it had promised? Was the
  Bachelor’s degree in      product proposition flawed? Did it       features that Kin brought to the table
     Electronics and        target the wrong audience? In            were Loop, Spot and Studio. Loop
     Communication          looking at these and other questions,    was the home screen of the phone,
Engineering from GEC,       an attempt is made to pinpoint some      which stayed always up-to-date and
  Thrissur and can be       lessons for today’s companies as they    allowed the user to remain
                            take up the challenge of launching a     constantly connected to online social
       reached at
                            new product.                             life. For this purpose, Loop
9priyan@iimahd.ernet.in                                              assembled feeds from Facebook,
                            New Product Launch –                     Twitter, MySpace and other services.
                            Lessons from Microsoft Kin
                                                                     Spot allowed users to share content
                             “Microsoft Ushers in the Next           such as videos, photos and status
                            Generation of the Social Phone with      messages with anyone through a
                            Kin, a New Windows Phone” – thus         simple drag and drop action. Studio
                            went the headline of a Microsoft         enabled the user to access all the
                            press release on April 12, 2010. At      contents in the phone’s memory, for
                            the time of its launch, Kin was touted   instance photos, online through
                            to be a landmark in “social phones”      cloud computing. It also provided
                            and it targeted what analysts have       automatic online backup of all the
                            termed the “generation upload”. Yet,     user content. Besides the three
                            within a span of two months,             elements, Kin included features of
                            Microsoft had to disband the entire      Microsoft Zune which allowed users
                            team involved in the development of      to listen to and download music,
                            Kin and integrate them into its          video, FM radio and podcasts.
                            Windows Phone 7 development
                            team.                                    Two versions of Kin were launched in
                                                                     the U.S. – Kin-One aimed at single-
                            While Microsoft deserves to be           hand use for $49.99, and Kin Two
                            lauded for quick action on a project     which was a higher end version for
                            with severely limited scope of           $99.99. The pricing of the data plan
                            commercial success, there are            by Verizon began at $29.99.
                            several lessons in the Kin fiasco for



                                                                                                        Page 2
The Looking Glass

                                                          It was not just on technical aspects that Kin might
                                                          be deemed deficient. In terms of pricing, Kin was
Target Segment

Kin, according to the launch press release, was           pegged too high for a device that was less than a
targeted at “people who [were] actively navigating        smartphone but more than a conventional phone.
their social lives.” It was positioned as a device that   The data plan was priced at a level more suited
would enable active users of social networking sites      for a smartphone when Kin was, in many respects,
such as Facebook and MySpace to share any aspect          only a fancier feature phone. Taken together, this
of life they wished to.                                   meant that the price of Kin was beyond the
                                                          acceptable range for most of its presumed
A key point in the Kin proposition was that it
                                                          customers.
enabled young users to stay connected. This was
evident in advertisements that used taglines such as      Slashing prices on the face of non-existent sales
“Friends, friends, friends” and followed a young          was merely an ineffectual gunshot in a battle that
user’s set of friends. Kin also projected the image of    was already lost. There was no way that this could
a fun device, rather than a product for professional      have worked as a promotional tactic.
or business users, through advertisements featuring
videos of partying youngsters.                            Moreover, unlike what Microsoft would have
                                                          loved to believe, the target segment of Kin was not
                                                          there for the taking. Through its attributes and
                                                          pricing, Kin disregarded the needs of the target
The Launch

Kin was made available online on May 6, 2010 and
                                                          segment. Also, Kin was competing against several
at Verizon stores a week later. Sharp was the
                                                          products in the same genre and related genres,
handset manufacturer and Verizon Wireless was the
                                                          products spanning the entire spectrum from
exclusive carrier in the U.S. It was initially launched
                                                          feature phones to top-of-the-range smartphones.
only in the U.S., and was planned for launch in
                                                          The stage of market evolution was such that
Europe in autumn by Vodafone.
                                                          comparison with existing products was inevitable.
However, sales were sluggish from the start and           The device simply was not good enough to
within a short period of time, prices were slashed        provoke switching or to attract new users with an
drastically – Kin One was down to $29.99 and Kin          invitation to experiment.
Two to $49.99. In spite of this, only about 500 units
were sold, before the decision was made to close
                                                          Lessons on New Product Launch
down the product rollout. Launch plans were               Given the path it took, Kin could well be termed
completely scrapped and the team behind Kin was           the ‘Edsel’ of the mobile phone industry. And the
disbanded.                                                lessons to be learned from the Kin fiasco for
                                                          companies aiming at a successful new product
                                                          launch are not few in number.
What Went Wrong

Kin’s abysmal failure in the market could be
                                                          Marketing     a    new     product    necessitates
ascribed to several reasons, most important of them
                                                          understanding the needs of the target segment.
being product features, pricing and targeting.
                                                          Kin failed not because the opportunity for it did
Despite the presence of ingenious features, Kin
                                                          not exist among the youth segment, but because it
failed to include provisions for apps or third-party
                                                          provided what was not really needed and left out
applications, or even an application as basic as a
                                                          features considered indispensable. Affordability
calendar. It also did not incorporate instant
                                                          among intended users was also overlooked. This
messaging which could have been identified as a
                                                          elucidates the importance of identifying the
critical application for the youth population being
                                                          attributes of the product that are critical for the
targeted. Another mistake was to preclude support
                                                          target segment. That Microsoft has not been able
for Flickr and YouTube in favour of Windows Live
                                                          to launch any hardware device successfully since
services which were, whether Microsoft liked it or
                                                          Xbox is a pointer to organisational factors that
not, less popular.
                                                          contribute to successful new product launch.




                                                                                                          Page 3
The Looking Glass

Stories doing the rounds point to internal discord
between teams working on Kin and Windows Phone
7, and to Kin being given less attention than it
                                                         Identify the Personality

deserved, leading to the launch of a half-baked idea.
                                                         1. He was born on Nov 19, 1909 in Vienna,

The extent of truth in these rumours may be
                                                            Austria. He earned a doctorate in

debatable. Yet, for any new product launch, it is
                                                            international law in Germany and left

essential that priorities are clear within the
                                                            Germany in 1933 due to the rise of Nazism.

organisation so that efforts are focussed in the right
                                                            He taught at New York University as a

direction.
                                                            Professor of Management from 1950 to


In addition, co-ordination with suppliers and other
                                                            1971. In 1971, he developed USA’s first


partners in the value chain is critical for new
                                                            executive MBA program for working


product success. While it lies in the realm of
                                                            professionals at Claremont Graduate


speculation, Kin might have seen better days if the
                                                            University. His writing focused on


pricing of its data plan from Verizon had been
                                                            management-related literature. He made


within the range of acceptability of a college going
                                                            famous the terms ‘knowledge worker’ and


student. Hence, it is important that partners of the
                                                            ‘knowledge economy’. He continued to act


company do not distance the product from its target
                                                            as a consultant to businesses and non-profit


segment.
                                                            organizations until his death in November
                                                            11, 2005 of natural causes at the age of 95.

Directly or indirectly, questions such as “what
business are we really in” that Theodore Levitt
                                                         2. Born December 18, 1955, he was educated


asked in his landmark article ‘Marketing Myopia’
                                                            at La Martiniere Boys' College in Kolkata


and ideas like core competence need to be factored
                                                            and has a degree in commerce from


in. Microsoft’s core competence of selling software
                                                            Calcutta University. He entered politics in


to business customers is far removed from the idea
                                                            2000 and superseded Subramaniam Swamy


of selling phones to teenagers. While such
                                                            as the president of the Janata Party. His


differences do not necessarily mean failure, they
                                                            hobbies include car and horse racing.


require that the new product launch is done with
                                                         3. Born Dec 2, 1947, in Mangalore, he is an

extra care.
                                                            alumnus of National Institute of Technology
                                                            Karnataka, Surathkal and IIM Ahmedabad.
Conclusion                                                  In 1988, he joined the Asian Development

Today, given the starkly low rate of successful new
                                                            Bank, Manila in their Private Sector

product launches, companies use multi-functional
                                                            Department and worked on projects in

teams for ensuring that new products do not suffer
                                                            China, India, Indonesia, Philippines,

from either a “drop” error or a “go” error, so that
                                                            Bangladesh and Vietnam. He is a recipient

neither is an opportunity missed, nor does the
                                                            of various honours including Businessman

company incur unnecessary costs of launching a
                                                            of the year(2007) by Forbes and The

product that is destined to fail. They use elaborate
                                                            Economic Times Business Leader Award of

new product processes and protocols, such as
                                                            the Year, 2007.

modified versions of the ‘Stage-Gate Process’ set out
by Robert Cooper. Yet, in spite of all precautions,
new product launch is risky.

Companies in such circumstances would do well to
heed the market. Otherwise, as Ross Rubin of the
market research and analysis firm The NPD Group
commented on Kin, even a product aimed at letting
users stay connected to friends would earn “far too
                                                          Answers


few friends of any kind at the cash register.”
                                                          1. Peter F Drucker; 2. Vijay Mallya; 3. K.V. Kamath




                                                                                                                Page 4
                           The Looking Glass

                                  KIDS’ POWER: THE HALLOWED ART OF
                                             PERSUASION
                            Introduction                               Some popular examples come to
                                                                       mind, who can forget Maruti’s ‘Papa
                            James McNeal, the author of ‘Kids          ki karaan? Petrol Khatm hi nahi
                            Market – Myths and Realities’ wrote        hunda’ ad, Surf’s ‘Daag achche hain’,
                            this in the Economist on Nov 30,           McD’s Happy Meal, Maggi Noodles,
                            2006, ‘children under 17 years of age      the list goes on....
                            influenced almost 47% of American
                            household spending in 2005,                Several authors have identified the
                            amounting to almost $700 billion’.         influence of a child during the three
    ABOUT THE               India already has 450 million              stages of decision making:
     AUTHORS                children below the age of 18 and it           searching      or    information
                            adds another 8 million children every          gathering
 Prasad Nayak is a 2nd      year. It’s not just the rising numbers        establishing and evaluating all
Year PGP student at IIM     but also their mindsets, approach,             possible alternatives
  Lucknow majoring in       thinking, preferences, likes and
                                                                          making the final decision
     Marketing and          dislikes that have undergone a sea
                            change over the last decade.               Also it has been found that the
  Operations. He is an
                                                                       decision making process in a family is
     Electronics and        Trends in this group are aplenty,
                                                                       complex because decision makers in
    Communications          some niche and some mass, but all
                                                                       a family change according to
   Engineer from Sri        are important. The numbers and
                                                                          Product type
   Jayachamarajendra        these rapidly changing trends impact
                            everything from government policies           Attitudes to purchase decision-
 College of Engineering,                                                   making roles in the family
                            to    education    to     retail  to
   Mysore and can be
                            entertainment to the environment.             Family composition, e.g. single
       reached at                                                          parent families, small and large
  pgp25146@iiml.ac.in       The influence of children in their             families
                            parent’s purchase behaviour has
 R Ravi Kumar is a 2nd      been discussed by many researchers.        Recent studies conducted in New
year PGP student in IIM     But the impact of chsildren’s              Zealand and reported in the
Lucknow specializing in     influence in the Indian context is a       European Journal of Marketing and
 Marketing and Finance.     topic which has not been studied in        the Journal of Consumer Marketing
   He is an Electrical      depth. Not much effort has been            indicate that adolescents seem to
                            made to find out as to what extent, if     play a significant role in the final
  Engineer from VIT,
                            any; children influence their parents’     stages of decision making and
 Tamil Nadu and can be      purchasing behaviour in India and          suggest that further research ought
       reached at           what factors contribute towards this       to re-consider the role of children in
  pgp25150@iiml.ac.in       influence.     This    has      exciting   family purchases at all stages of
                            consequences and already being             decision making . Given the wide age
Vishnu Kumar Modi is a      explored by marketers. Gone are the        range of children, authors have
2nd year PGP student at     days when children were targeted to        identified a group of children as
IIM Lucknow majoring        sell things like chocolates, ice-cream,    “Tweenagers”. These are the 8 to 12
  in Marketing. He is a     toys, etc. Today advertisers target        year olds, a relatively under-explored
Computer engineer from      children for a wide range of products      segment which has a strong influence
IIIT Hyderabad and can      and are increasingly becoming              in parents’ purchasing decisions. So,
      be reached at         convinced about the role children          if you feel that tantrums are all that
                            play in purchasing decisions of the        kids can throw then you’re in for a
  pgp25165@iiml.ac.in
                            family.                                    big surprise.


                                                                                                        Page 5
The Looking Glass

 Statistics clearly reveal that children tend to
 influence about $130 billion worth of goods every
                                                        Curiosity gets the better of us

 year and this number is progressing as fast as         Quite intrigued by this topic, we decided to
 Saina Nehwal’s meteoric rise in the world              pursue it on our own accord. We tried to find out
 badminton rankings!                                    whether children have any influence on the
                                                        purchasing decisions of parents or not. If the
 What could be the reason behind this trend? The        answer to the above question was yes, then we
 attributable reasons could be many but the most        would shift our focus to finding out the reasons
 logical one of them is the fact that the               for the same i.e. the why, how and when
 demographics have shifted towards Double               questions. We restricted the scope to identifying
 Income families. As two income families become         the influence of children over the purchasing
 the norm, the decision maker within the family         decision of parents wherein the decision needs to
 unit is changing. Also, parents have less time for     be made with regards to products which have
 children, and consequently tend to let them            utility value for the entire family rather than
 influence purchase decisions in order to alleviate     products meant for children alone. Hence, we
 some of their guilt. Furthermore, the pocket-          took into account the perception and responses of
 monies are ever on the rise. Children also have        parents who are the ‘influencees’ rather than
 more money to spend for themselves. Add to this,       children who are the influencers. This in turn was
 the increased exposure via mass and digital media      achieved through various surveying techniques.
 formats and the inescapable influence of peers,
 the combination is quite lethal. It is no longer
 possible to shy away from the truth that’s staring
                                                        Survey

                                                        Questions for the survey were designed keeping
 right at you. As the old adage goes, “If you can’t
                                                        in mind the respondents i.e. parents. The
 beat ‘em, Join ‘em.” This is what marketers are
                                                        questionnaire can be implicitly categorised into
 trying to do, be it in terms of advertising,
                                                        three segments. The first segment tries to address
 merchandising, POPs, promotions et al.
                                                        the demographics of the respondent and the third
 There are a number of steps involved in                segment tries to measure the involvement levels
 developing      an    effective   and     successful   of the purchaser while deciding to buy a
 communication and promotion campaign. The              particular product.
 first step obviously, is identification of target
                                                        The second segment was extremely important as
 audience. The target is associated with the
                                                        it addressed the core aspect of our study. Firstly,
 concept of ‘buying roles’ in the decision making
                                                        it tries to identify whether children influence
 process. It is possible for a single person to play
                                                        parents’ purchasing decisions. If yes, then it tries
 multiple roles. Some of these roles are initiator,
                                                        to find out
 influencer, decider, buyer and user. Children play
 an important role in influencing and persuading        a. When and/or where the influence happened
 their parents and that explains marketers’                i.e. Before or After making the purchase
 attraction towards them. The amount of influence          decision and Before going to the Store or In
 exerted by children varies by product category            the Store
 and stage of the decision making process. For
 some products, they are active initiators,             b. Whether the purchasing decision was
 information seekers, and buyers; whereas for              influenced by Child’s Awareness Level or
 others, they influence purchases made by their            Emotional Blackmail / Avoiding Tantrums or
 parents. The purchasing act is governed by how            Out of Love for the child
 they have been socialized to act as consumers.
                                                        c. If the responses indicated that the influence
 Family, peers, and media are key socializing
                                                           was primarily because of the Child’s
 agents for children wherein family-specific
                                                           awareness levels, then the survey tried to
 characteristics such as parental style, family’s Sex
                                                           measure the mode of media from where the
 Role Orientation (SRO), and patterns of
                                                           child gets his/her information and also
 communication are essential instigators.


                                                                                                        Page 6
The Looking Glass

  whether Television is the form of media that
  influences the child These two questions
                                                       doesn’t depend on the phase of purchase (i.e. Pre-
                                                       Phase of Purchase

  were added with the intention of providing
                                                       Store phase or In-Store phase) while considering
  some insights to marketers regarding the media
                                                       High, Medium or Low Involvement products.
  format they could choose to address this
  segment.

While designing the Questionnaire, one major
                                                       Child Awareness

                                                       Children’s influence on parent’s purchasing
roadblock was how to ask questions for different       decision doesn’t depend on the level of children’s
products. This issue was resolved by identifying a     awareness while considering High, Medium or Low
product basket wherein the products were               Involvement products. It depends on the level of
categorised based on the degree of involvement i.e.    children’s awareness when we consider the entire
High, Medium and Low involvement. This                 product basket as a whole.
categorisation was done based on Secondary
Research, Focussed Group Discussions and Primary       In the case of Child Awareness, the results for the
Research using an Involvement Questionnaire            low, medium, high involvement product baskets
alone. Totally 15 products were identified and         showed that children’s awareness levels had no
using the above mentioned techniques, the              effect on the purchasing behaviour of parents. But
products were assigned to the three categories.        when the 3 baskets were combined, the results
                                                       were quite the opposite.
A world full of hypothesis

Ever wondered, the number of hypotheses you
                                                       The hidden meaning

have formulated after coming to a B-School would       The results of our study can have far reaching
probably be more than the number of times you’d        market implications. The outcome reveals that the
have cursed Team India after another defeat from       Influence is independent of the phase of purchase.
the jaws of victory (pun intended). Anyway, coming     If one were to observe the trends closely then the
back to our dilemma while solving the ‘Kid Riddle’.    realization dawns that most of the campaigns
Little research had been done on the factors that      targeted at children, have been centred around the
are responsible (like parents’ income group, child’s   Pre-purchase phase while the examples for the In-
awareness level, etc.) for the impact of children on   Store Purchase stage are few and far between.
parents’ purchase decisions or the purchase phase      Furthermore, as the gradual shift happens from
where the actual influence occurs.                     Advertising towards Sales Promotion, this segment
                                                       is wide open for exploitation.
We wanted to extend the traditional research
objective “Do children influence parents’              Moreover, the influence is independent of the
purchasing decisions” to include these factors as      Income levels, so the segmentation needn’t be
well.                                                  done to split the target group based on this
                                                       parameter. With DIWKs ‘Double Income With Kids’
                                                       becoming a phenomenon and parents not having
                                                       enough time on their side, the growing importance
Going for the kill

We stumbled upon the following intriguing results
                                                       of kids can’t be underestimated. Marketers would
and wanted you all to become party to it. So, here
                                                       do well by taking a leaf out of the West and look for
goes... Children Influence Parents’ purchasing
                                                       ways to target kids. But what needs to be further
decisions but the influence is contingent upon:
                                                       explored is whether the implementation should be
                                                       exactly as in the West or does a customization
                                                       need to happen while focussing on India and the
Children’s influence on parent’s purchasing
Income Group

                                                       subsequent impact of such campaigns on the sales
decision doesn’t depend on parent’s income group       for the firm. Last but definitely not the least, the
while considering High, Medium or Low                  ethical ramifications of this strategy need to be
Involvement products. The same effect was              clearly understood before jumping into this sea of
observed in the Overall Product Basket. Children’s     opportunities.
influence on parent’s purchasing decision:

                                                                                                        Page 7
                             The Looking Glass

                                         INDIANIZING – THE PEPSICO WAY

                              Introduction                              benefits of successfully conforming to
                                                                        the Indian tastes and sentiments. Let
                              When it comes to the taste buds,          us see how Kurkure captured the
                              Indians will be Indians...we love our     Indian pulse and continues to do so.
                              food and we love spicing things up.
                              Be it pizzas from the Pizza Huts or be    The whole idea behind the product
                              it burgers from the McDonalds, an         was to fill in a category of salty snacks
                              Indian touch before it goes into the      which an average Indian loves with his
                              menu helps. I wonder what the             tea. Pepsico’s Lehar namkeens have
                              Italians would say to a ‘Keema Do         been there for a long time, but these
    ABOUT THE
                              Pyaza Pizza’ of Dominos , or a            did not match the pick-off-the-rack
     AUTHORS                  ‘Teekha Paneer Makhani Pizza’ of          products like wafers and chips.
                              Pizza Hut. Ever gave it a thought why     Kurkure filled this void and it was a
Sachit Handa is a 1st year
                              McDonald’s is selling a burger named      success as soon as it was launched in
   PGP student at IIM         ‘Mc Aloo Tikki’ , or what a ‘Veg          1999. But Pepsico just didn’t halt
   Calcutta. He holds a       Samosa’ is doing in a CCD display         there. With now the knowledge that
   Bachelors degree in        window? The answer lies in one            Indianizing products is an asset,
     Electronics and          word - ‘ Indianizing ’.                   Pepsico launched many flavors of
    Communications                                                      Kurkure which conformed with Indian
                              ‘Indianizing’ isn’t a new or an           tastes. With meticulous positioning
    Engineering from
                              innovative concept, nor is it a word      and targeting, Kurkure has launched
  National Institute of       you will find in the Oxfords or the       flavors catering to local tastes like
 Technology Bhopal and        Websters. It is just a manifestation of   ‘Funjabi Kadhai Masala’, ‘Mumbai
    can be reached at         the most basic marketing principle        Chatpata Snack’, ‘Green Chutney
sachith2012@email.iimca       which tells marketers to revolve          Rajasthani Style’ ‘East Parar Tok Jhal’,
          l.ac.in             every strategy around the consumer.       ‘South Special’ and          ‘Hyderabadi
                              Look no further to see how this           Hungama’. The advertising campaign
                              works…the colorful assortment of          also struck an Indian chord with
                              wafer and salty snacks on the display     actress Juhi Chawla promoting the fun
                              rack of your closest general store are    loving family concept, something
                              perfect examples of Indianizing. The      which all Indians associate themselves
                              market for these salty treats in India    to. Attempts have also been made to
                              is worth around Rs 2000 crore today       evolve Indian spicy snack recipes with
                              and is growing at a tremendous rate       Kurkure as the main ingredient.
                              of 20%. Of the big players , Pepsico      Kurkure has even been pilot tested as
                              enjoys a large chunk of the market        a chaat at some malls where chefs
                              share and has been very successful        were encouraged to create new snacks
                              with its indigenous products. The         using Kurkure. And with the launch of
                              success of this segment lies in the       ‘Desi Beats’ in 2009, the intent was
                              aggressive ‘Indianizing’ strategies       clear with the name of the product
                              employed by Pepsico .The focus here       itself. Kurkure also tried to enter into
                              is on the crunchy, spicy snack well       the gift pack segment, another
                              known now in every Indian                 ‘Indianizing’ concept, where salty
                              household- Kurkure. A 700 crore           snacks were portrayed as gifts to
                              brand in India which displayed a          replace traditional sweets during the
                              double digit growth at the beginning      Diwali season. It didn’t catch on too
                              of 2010, Kurkure is one of Pepsico’s      well, for the obvious reason that it
                              products which is reaping the


                                                                                                            Page 8
The Looking Glass

 attempted to meddle with a tradition core to
 Indians in a cultural and religious aspect.
 Moreover, the punch line ‘Muh Kurkure karo’ , a
                                                        Quiz 1

 rip off of the beter known ‘Muh mitha karo’ failed
                                                      1. What business was Nokia into when it

 to produce the desired impact. However, in spite
                                                         started?

 of a few hitches, including the rumor that Kurkure
 had harmful plastic in it, Kurkure has emerged as
                                                      2. Expand BPL.

 a brand which is now going to hit global markets
 owing to its great response in India. "There has
                                                      3. Identify the company

 been interest in the Pepsi eco-system for local
 variants of Kurkure from South Africa to the
 United Kingdom," says Gautham Mukkavilli ,
 CEO—India Foods and President—India region
 for PepsiCo. A consumer centric approach to
 marketing can be notched up a level higher if the
 local culture and tastes are finely understood.
 Pepsico has proved this with its success in the
 snack market. With one Indianized product doing
 well in the market, it would be worthwhile to
 watch how Pepsico’s Nimbooz would fare in the
 long run – a product based on Nimbu Paani -
 India’s favorite homemade drink.                     4. Which clothes brand gets its name from the
                                                         Wild West term for a cow hand who rustles
                                                         up stray cattle?

   Brand Trivia!!                                     5. The Delhi-Bangalore Rajdhani is the first of
                                                         the three Rajdhanis to be branded; featuring
   McDonalds                                             a host of additional passenger amenities,
                                                         including round-the-clock housekeeping
   • The northernmost McDonald's restaurant is
                                                         operations. Who is the advertiser?
     located on the Arctic Circle in Rovaniemi,
     Finland, while the southernmost franchise is     6. Which brand had the tagline “Satyam
     located in Invercargill, New Zealand. Also,         Shivam Sundaram?
     the world's easternmost McDonald's is
     located in New Zealand, in the city of           7. The Parker company made a colossal
     Gisborne; the westernmost restaurant is in          mistake when they tried to market their leak
     Western Samoa, as they are the closest to           proof pens. Instead of advertising 'It won't
     either side of the International Date Line          leak in your pocket and embarrass you', they
                                                         accidentally claimed that 'It won't leak in
   Lamborghini                                           your pocket and make you pregnant'. In
                                                         what language was this mistake made?
   • Lamborghini is the name of the founder
     Ferruccio Lamborghini. The bull symbol on        8. Expand WIPRO.
     the cars is actually his birth sign.
   • Lamborghini was actually a Tractor               9. In October 2003 Motorola decided to spin off
     manufacturing company and manufactured              its semiconductor products business into a
     tractors for decades. The first car they built      separate company. What is the company
     was in 1963 with top speed of 280km/h.              known as
   • Lamborghini can actually go 60 mph in
                                                      10. Which brand has the tagline “Makes life a
     reverse.
                                                          little easier”?




                                                                                                    Page 9
                             The Looking Glass

                                ADVERGAMING:A ‘SILVER BULLET’ OR JUST
                                   ANOTHER ‘ARROW IN THE QUIVER’

                              Abstract                                  and also increase promotion by
                                                                        building word of mouth via codified
                              As Leo Burnett puts it, “A good basic     buzz marketing.
                              selling   idea,    involvement    and
                              relevancy, of course, are as important    Evolution
                              as ever, but in the advertising din of
                              today, unless you make yourself           Advergaming was pioneered in 1995
                              noticed and believed, you ain't got       by Skyworks1. Skyworks created a
                              nothing”.                                 free online gaming site for its client
     ABOUT THE                                                          LifeSavers of Nabisco. The site gets
      AUTHORS                 Of late, gaining customers’ attention     millions of users every month. Since
                              has become one of the biggest             then Skyworks has also created
 Rohit Agarwal is a 2nd       challenges for the marketers.             Advergames for large corporations
Year PGP student at IIM       Advergaming has gained tremendous         such as AOL, Ford, ESPN, and Pepsi.
                              popularity owing to its ability to gain   Other major players in the
Bangalore specializing in
                              customers’ attention and also enable      Advergaming market are Zapak.com,
    Finance. He is an
                              a high degree of brand salience. In       Games2win,          Indiagames.com,
Electronics Engineer from     this article we study the unique          Contests2win.com, Jump Games,
RVCE Bangalore and can        characteristics of Advergames, its        Hungama Mobile and Kreeda Games,
      be reached at           applicability to various product          Zynga (Farmville fame).
   adrohit@gmail.com          categories, and measures required to
                              enhance its effectiveness.                Recent study by Robert Kent has
Rohit Rakesh is a 2nd Year                                              shown that 20 to 30 per cent of the
   PGP student at IIM         ‘The recall rate of Microsoft’s ads was   TV advertisements shown per hour
   Bangalore. He is an        71 percent, and according to the          per network were from the same
                              company, 60 percent of the gamers it      product category1. This reduces the
 Electrical Engineer from
                              spoke with said they had a more           effectiveness of advertisements both
MNNIT, Allahabad and can      positive opinion of Bing after seeing     due to the high level of clutter in
       be reached at          the brand in a game’1.                    general & also due to the proximity of
 rohit.rakesh@gmail.com                                                 advertisements from the same
                              Tell these numbers to any Brand
                                                                        product category (soap ad followed
Vivek Chakrapani Goyal is     Manager and you’ve made his day.
                                                                        by another soap ad). All the
a 2nd year PGP student at     Welcome     to  the   world   of          traditional mass media advertising
IIM Bangalore. He holds a     Advergaming.                              suffer from this serious drawback.
 B.Tech.in Information &      The practice of using video games to
                                                                        Advergaming is a unique medium as
      Communication           advertise a product by designing the
                                                                        it ensures that the interaction
   Technology from DA-        game around the brand or without it,
                                                                        between the consumer and the
 IICT, Gujarat. He can be     in an effort to enhance its brand
                                                                        products is both fun and engaging.
        reached at            salience, is known as Advergaming1.       Moreover,     Advergames        lend
vivek.chakrapani@gmail.co     Advergames allow customers to
                                                                        themselves naturally to peer-to-peer
                              virtually touch, feel and experience
            m                                                           marketing. Research has shown that
                              the brand by promoting repeat traffic     50% of the consumers who play the
                              to the websites of the brands. The
                                                                        Advergames do so for around 30
                              importance of Advergaming to the          minutes1, which is considerable
                              marketers is immense as they enable
                                                                        more than the 30 seconds attention
                              marketers to collect invaluable           span that most brands get on a
                              customer data via registrations           television advertisement, not to


                                                                                                        Page 10
The Looking Glass

 mention at much lower costs. Moreover unlike
 television advertisements which can be either
 zipped or zapped, Advergames are more effective
                                                                            Classification-Involvement Map


 in involving the customers owing to the addictive




                                                      Brand Involvement
 and engaging nature of the games.

 Industry Classification

 From its older system of classification which
 included ‘above the line’, ‘below the line’ and
 ‘through the line’ methods, Advergaming offers the
 following classification1 (as per Sneakygames1, a
                                                                           Sponsored    Integrated Brand   Playable Brand   Brandistraction


 leading game studio in Austin, TX with over 7
                                                                          Advergaming      Advergame        Advergame



 years in this industry):
                                                                                        Advergame Classification



 • Sponsored Advergaming: The type of games
   which are promoted and funded by a brand
                                                      Advergaming For Different Product

   but the brand itself doesn’t figure during the
                                                      Categories

                                                      Advergames allow for extreme customization for
   game, either physically or in terms of gaming
                                                      different companies and products. To understand
   experience. But the game ‘may’ feature on the
                                                      how Advergames work under different
   company’s website or could even be hosted on
                                                      advertising situations, we would use the Rossiter-
   third party website.
                                                      Percy grid to analyze the requirements of
 • Integrated Brand Advergame: The brand              Advergames for brand promotion under different
   appears during the game but is not                 advertising situations.
   inseparably linked to it. It could be subliminal
   or supraliminal
                                                      Low involvement informational situation

                                                      Under low involvement situations, the consumer
 • Playable Brand Advergame: There is a great
                                                      does not have deeply considered attitudes
   deal of prominence given to the brand during
                                                      towards the brand. Therefore the Advergames
   an Advergame, and it could in some way also
                                                      designed for such products should focus on either
   be linked to the experience of the game.
                                                      one or two key benefits with the intention of
 • Brandistraction [‘bran-distraction’]: Here         provoking a trial purchase or to use a problem-
   we find the closest association of the brand       solution format. One such Advergame is shown
   and the game. There are two fundamental            below where a simple tennis game resonates the
   laws, as Sneakygames point out:                    key benefits offered by Gillette Mach3.

     • The game and the brand are inseparably
       linked. For instance you could have a
       Deodrant game where women are being
       shot and the darts/bullets are the brand
       fragrance bottle.

     • The player has to act and play in the same
       vein and the same philosophy as
       communicated by the brand, in order to
       emerge a winner.




                                                                                                                                     Page 11
The Looking Glass

High involvement informational situation               High involvement transformational situation

In high involvement situations, the consumers seek     In High Involvement, transformational situations;
more hard information and therefore the                the Advergames have to be liked and also need to
Advergames focus on making logical and                 create a feeling of lifestyle identification with the
convincing brand claims. The format of the             consumer. The Advergames also need to provide
Advergames in High Involvement, informational          supportive hard information to support the brand
situations could either be comparative or              claims. One such example is shown below where
refutational in nature. One such Advergame is          ‘3 idiots’ star Aamir Khan doles out advice and
shown below where MNS, a political organization        words of encouragement, which participants
lays its agenda & disseminates information about       identify with the theme of the movie.
its activities.




                                                       Other Factors That Influence The
                                                       Effectiveness Of Advergames
Low involvement transformational situation

Advergames         in     the     low-involvement,
                                                       Advergames are created in such a way that the
                                                       Difficulty level

transformation situations need to have a unique
and authentic emotional benefit to be effective.       consumers are unlikely to master it in the first
Unlike the informational Advergames that need not      attempt. It takes approximately three attempts
be likeable, low involvement transformational          before a user can crack the game. As Advergames
advertisements depend on likeability of the ad as it   are built around the theme of the product, this
directly increases effectiveness of the game           leads to a repeated exposure to the product’s
message. One such Advergame is shown where             theme; thereby resulting in a higher amount of
‘Axe Meter’ is used to determine participants’         learning for the consumer.
attractiveness quotient and appeals to the hedonic
expectations of its TG male audience.
                                                       As Advergames are designed around the theme of
                                                       Distraction


                                                       the brand, it is assumed that the consumer is
                                                       involved in the game. A higher level of
                                                       involvement from the consumer would increase
                                                       the learning by building on the associations
                                                       between the brand and the theme. However it
                                                       must be noted that the creativity used to create
                                                       the advertisement should not distract the
                                                       consumer from the product itself (the traditional
                                                       ‘figure and ground problem’ in consumer
                                                       perception).


                                                                                                       Page 12
The Looking Glass

                                                                         on to other games which are a little more
                                                                         challenging and probably more engaging. Also at
Repetition

ASI Market Research Inc.1 has shown that the extent
to which the viewers link the ad to the brand name                       the on to other games which are a lit same time,
is dependent on how early and how often the brand                        the game cannot be made too difficult, both in
name is mentioned. Therefore the Advergames                              terms of its rules and also the playing acumen, or
should ensure that the viewers’ first exposure to the                    else the user shall have to use too many cognitive
brand name is early in the game and also that the                        faculties and the interest might wane away again.
viewer encounters the brand name on a frequent                           Addressing the sensible user problem, we need to
basis while playing the game. However this needs to                      ensure that product placement is well thought out
be taken care of with caution, as an over-exposure                       and based on user-profile and survey feedback. At
might lead to perceptual blocking.                                       the same time, the theme and the message
                                                                         inherent in the game should be perfectly aligned
                                                                         with the brand’s identity that it has created for
                                                                         itself over the years.
SWOT Analysis

                • Low costs of        • Durability    of
                  creation              the game
                • Authentic to the    • Unlike     mass
                                                                         Advergaming:             What         The       Future

                  mission of the        media,     can’t
                                                                         Holds?

                  company               span entire TG.                  Research has shown that online marketing is
                                                            Weaknesses




                • TG audience are     • Worldwide                        more effective in driving purchase intent as
Strengths1




                  thought leaders       Internet                         compared to other marketing media (Refer Figure
                • Ease           of     penetration1 of                  below). This is one of the biggest reasons behind
                  mapping ability       only 26%                         the popularity that Advergames enjoy with
                  to           user                                      response marketers. The size of the Advergaming
                  demographics                                           market in 2004 was $ 83.6 million and its size in
                • Helps meet a        • Degree         of                2010 is estimated to be around $ 3 Billion1, a
                  very targeted         difficulty of the                testimony to its acceptance and its growing
                  portion of TG         game                             popularity, which can also be gauged by the fact
                • Viral Effects1      • Sensible users                   that the size of the Advergaming market by 2012
Opportunities




                • No Multitasking       could see a                      is estimated to be $ 68 Billion1 in US alone.
                                                            Threats




                                        disconnect
                                        between game
                                        &           brand
                                        identity 12

Action Plan For Effectiveness Of This
Medium Of Advertising

A clear focus on leveraging the strengths and new
opportunities while steering clear of its weaknesses
and minimizing the threats would be an ideal
strategy for any promotion. In Advergaming, the
strengths and opportunities are tangible and arrive
without much effort in form of increased user
involvement and brand awareness benefits, but it is
the threats that the organization should be wary of
and should be most eager to avoid. In order to
explain, let’s take in-game Advergames as a
reference. Advergames by their very nature are easy
to learn and even winnable in a short number of
                                                                         Source: Bain & Company/IAB Marketer Research1


tries. Needless to say, an overly easy game would let
the consumer interest wane as he could easily move


                                                                                                                            Page 13
                           The Looking Glass

                                            THE BRAND IS NOT ENOUGH


                            "I am irresistible, I say, as I put on my   branding. However, there are
                            designer fragrance. I am a merchant         companies taking this concept of
                            banker, I say, as I climb out of my         branding to a whole new level. They
                            BMW. I am a juvenile lout, I say, as I      are ever pushing the limits to which
                            pour an extra strong lager, I am            they can leverage their brand to
                            handsome, I say, as I put on my Levi        increase market share, consumer
                            jeans" –John Kay                            loyalty, etc. Welcome, ladies and
                                                                        gentlemen, to the world of Power
                            Many marketers believe brands are           Brands. Sample this – Coca Cola
    ABOUT THE               important because they shape                values its brand at over $68.73
     AUTHOR                 customer decisions and, ultimately,         billion, IBM at $60.21 billion. The
                            create economic value. Brands are           world’s top 100 brands have a
Kiran Shah is a 2nd Year    the driving force behind persuading a       combined value of $1.15 trillion. It is
   PGP student at IIM       consumer to choose one product              natural then, that many CEOs aspire
Lucknow and specializing    over another. In an environment             to possess stronger brands.
                            where meaningful product and
    in Marketing and
                            service differentiation is becoming         But what does a Coca- Cola or an IBM
    Finance. He is an
                            increasingly difficult to achieve and       has that a State Farm or a Bell
  Electronics Engineer      sustain, it also gives power to shift       Atlantic does not? So why not aim
from DJ Sanghvi College     market shares. Once upon a pre-             high? In branding, aiming high is
 of Engineering and can     branding time, sneakers were just           rarely enough. Relatively few
      be reached at         sneakers: cheap, all-purpose canvas.        companies establish true power
  pgp25093@iiml.ac.in       The buyer only decided whether to           brands. Yet it is possible to create
                            go for high tops or low tops. Then          substantial shareholder value by
                            along came Adidas, Nike, Puma, and          prudent investment in brand
                            Reebok and they started making              building, just as it is possible to have
                            shoes mainly for running, and               a great career in business without
                            followed them with whole ranges of          being a CEO, or create political
                            single-purpose sneakers: sneakers           impact without being a governor.
                            for basketball, for tennis, and so on.      In a world where strategic vision and
                            And the rest is folklore in shoe




                                                                                                          Page 14
 The Looking Glass

the investments to support it - can go so awry,           extensions of these brands across multiple
companies should pause before they invest to              concepts and into multiple channels.
consider whether a power brand is truly within
their reach. More specifically, companies should
observe three principles in managing brands.
                                                          If you got the muscle, flaunt it

                                                          There probably isn’t any company that has built
First, brand building is a considered process that        and sustained a strong brand without strong
entails making the right investments at the right         marketing capabilities. A company may start from
time. Second, what those investments are and when         level 0 when it starts to build its brand strategy.
they should be made will be partly determined by          Its brand management department will not
industry forces. Third, whichever the industry,           necessarily look like that of a Unilever. In every
brand building calls for major marketing muscle. A        case, however, the company has critical marketing
name becomes a brand when consumers associate it          skills to a high degree: a superior insight into
with a set of tangible or intangible benefits that they   customer needs; the ability to devise products or
obtain from the product or service. As this               services that powerfully meet those needs; the
association grows stronger, consumers’ loyalty and        ability to redefine its offering as those needs
willingness to pay a price premium increases.             change; and the creativity to produce exciting and
Hence, there is equity in the brand name. A brand         compelling advertising. Without a strategic
without equity is not a brand. To build brand equity,     marketing mindset that understands all of these
a company needs to do two things: First, distinguish      things, there is a risk that a brand will fail to
its product from others in the market; second, align      appear distinctive in the marketplace. Moreover,
what it says about its brand in advertising and           differentiation must be communicated in a way
marketing with what it actually delivers.                 that customers understand and that motivates
Relationship then develops between the brand and          them; otherwise the brand will not tap into the
the customer – a relationship arising from the            virtuous cycle that is created when a customer
customer’s entire experience of the brand. As the         receives distinct benefits that are communicated
alignment grows stronger, so does the brand.              continually.

                                                          Building a power brand is a difficult challenge, but
                                                          the direct translation of brand equity into
There are brands and there are Power

                                                          shareholder value makes it a rewarding one.
Brands

Question: What is common between Coca-Cola, Nike,         Companies in industries that have not historically
Levi’s, Disney, IBM, Mercedes, BMW, McDonald’s,           used brands to build value should put brand
Sony, Xerox that other brands don’t have? Answer:         building on their management agenda. They
All of the brand basics - a distinctive product,          should not, however, get lost in the challenge. All
consistent     delivery,   alignment      between         the while they are putting intelligent energy into
communications and delivery – plus personality and        conveying an emotionally engaging message,
presence.                                                 companies must not forget that their core product
                                                          assets – proprietary technologies in the case of
Personality: Most brands have a purely functional         computer manufacturers, say, or investment
relationship with their customers: they are valued        expertise in the case of mutual fund providers –
for their consistent delivery of a product or service     will continue to be a source of functional
that reliably performs a certain job. A Power brand,      superiority over branded competitors. It is, after
however, creates a more emotional bond that grows         all, differentiation of this sort that built their
out of its personality. It generates relationships with   brands in the first place.
customers that are manifold stronger than those
achieved by ordinary brands.                              “And I'm not an actress. I don't think I am an

Presence: Power brands seem to be present at
                                                          actress. I think I've created a brand and a business.”

every turn, reinforcing their distinctiveness. Such
                                                          – Pamela Anderson”

presence usually derives from national or
international scale. It also comes from successful


                                                                                                          Page 15
                            The Looking Glass

                                      THE TIPPING POINT OF CREATIVITY

                             Abstract                                    telecom industry in India seems to
                                                                         have reached a tipping point which
                             This article explains and explores a        Gladwell defines as the “levels at
                             phenomenon that is strangely unique         which the momentum for change
                             but largely inexplicable. Sometimes         becomes unstoppable."1 Beyond this,
                             an entire industry chooses to become        all the players in the Telecom industry
                             creative      in    its      marketing      seem to display a compulsive need to
                             communication. What is it that drives       get creative thus triggering a virus-
                             all players to innovate with their          like spread of creativity leading to
    ABOUT THE                communication and not with other            what may be termed as a collective
     AUTHORS                 equally pressing aspects of business?       marketing ‘creative-isation’ or simply
                             Can one, looking into the future,           a creativity epidemic.
Chinmaya Kumar Sharma        predict with any semblance of
    is a 2nd year PGP        accuracy, when this can happen to an        Fooled   by           randomness?
      student at IIM         industry? These are the questions,          Perhaps not!
                             admittedly convoluted, that this
  Bangalore. He holds a                                                  Is the Collective creative-isation in the
                             article seeks to answer. We identify,
   Bachelor’s degree in      in hindsight, instances when this has       Telecom        industry      a     sheer
 Aerospace Engineering       happened, analyze and learn from            coincidence? A random phenomenon
from IIT Kharagpur and       the examples, and then theorize what        that can strike any industry anytime?
    can be reached at        may bring about this sudden                 Through a set of comprehensive
chinmaya.sharma09@iimb.      onslaught of creativity in an industry.     examples, we rationalized the factors,
                                                                         a combination of two or more of
          ernet.in
                             Introduction                                which can lead any industry towards
 Kunal Deep Bhagat is a                                                  this phenomenon. The identified
                             The next time you see Idea’s ‘Oongli        factors and the illustrative examples
2nd year PGP student at      Cricket’ ad or ‘Save paper’ initiative
                                                                         are enlisted thus proving the
IIM Bangalore. He holds      and find it more creative than bland,       phenomenon transcends randomness:
  a Bachelor’s degree in     think back to its competitors - are
     Electronics and         they treading the creative path too?        Product Miniaturization/Relegation
     Communications          While Vodafone’s ZooZoo has
                             redefined advertising, Virgin, right        When an industry becomes so
 Engineering from VIT                                                    competitive that the products sold by
                             from its inception, communicated
  and can be reached at      through a perfect brew of wackiness         one     player     can    hardly     be
kunal.bhagat09@iimb.erne     and wit to capture the mind share of        differentiated from that sold by
           t.in              the youth. Aircel too is finding its foot   another, the product takes the ‘back
                             faster than one would expect, an            seat’, thus becoming the less
 S Archana is a 2nd year     instance being the raft it simply           important       variable    in      the
                                                                                                          Page 10
   PGP student at IIM        suspended from its hoarding (saying         communication to consumers. In this
 Bangalore. She holds a      “In case of emergency CUT ROPE”)1           scenario, where the product has
   Bachelor’s degree in      helping rain-stranded Mumbaikars            become so miniaturized players feel a
                             find their way back home and                need     to    create    an   artificial
     Electronics and
                             enabling itself find its way into media     ‘differentiation’ often manifested
    Communications                                                       through creative communication. The
                             stories galore.          Tata Docomo
 Engineering from VIT                                                    Indian telecom players are a case in
                             surprised the market with its
  and can be reached at      creative schemes and instantly              point. Although a high involvement
archana.s09@iimb.ernet.in    catchy tune. The point we are               service, the dozen odd brands in the
                             hinting at is that the entire               market, with nearly similar offerings



                                                                                                            Page 16
The Looking Glass

today have left the customer embroiled them into a       for, but still yearns for that disappearing patch of
dilemma of which brand to pick! This customer            filamentous cells atop. Metlife Insurance, which
fatigue drives customers’ expectations way beyond        stands for “Peace of mind. Guranteed” smartly hints at
just the service offering. With the miniscule call       the uncertainty in life through the simple prank of a
rates similar across the board and the same              kid securing pocket money from his granny in the
services1 (like cricket, stock updates, welcome tunes    ‘Aaa aaa aaja’ ad. This served as a tipping point for
etc) being offered by one and all, it is the raft that   creativity in Insurance advertising, with each player
Aircel used helped sail into the clogged mindspace       vying for and scheming over the elusive last laugh,
of consumers.                                            quite literally!



Changing consumer psyche often call for drastic
The Eureka factor


changes in the tone and essence of communication,
which marketers need to quickly identify and adapt
to.        However     marketers      design     their
communications centered about presumed key
benefits which consumers derive from the product,
as perceived by them. These soon become mundane
norms which the entire industry follows until a fore-
sighted, blue-eyed marketer radically alters the focal
point of advertising based on his discovery of the
real underlying benefit for the consumer. We define
                                                         Fig 1. A still from the Max New York Life Insurance ad

this discovery as the ‘Eureka factor’ which catches      Another classic example is that of the Deodorant
the true pulse of the audience and makes the             industry in India. Earlier ‘Freshness’ was used as the
discoverer a game changer. There are instances to        selling point, effectively coupled with fragrance, long-
exemplify as to how this tips off collection creative-   lasting, antiperspirant attributes with the tone of
isation.                                                 portrayal being direct or at best suffused in subtle
                                                         humour. However, the true value derived by the
Life Insurance being a high involvement product          customer drastically evolved from one of obvious
with considerable negativity associated, the             pleasant smell to a not so obvious sex appeal or ‘being
marketers earlier resorted to leveraging the fear-       attractive’. This has been cleverly understood by the
factor.1 They appealed to a person’s innate dislike      ad makers as seen by the shift in their depiction from
for ageing and added to it a tinge of portrayed          freshness to sexuality. This change spurred by one
helplessness and senility to give it the desired         foresighted player has led the entire industry to join
proportions of fear. Humor was a taboo for they          the band wagon, each in their own creative way.
feared being facetious until one rebellious ad-maker
adopted the Seat belt logic – the art of using humour
as a means to convey a rather serious message,           Mature products (with respect to their product life
                                                         Product Maturity

especially deployed when the product or concept is       cycle) are also prime suspects that tend to bring out
perceived to have profound implications despite the      the creativity of their sellers. The answer is perhaps
humour. Consumer’s growing impatience for                more intuitive than academic. By the time the
didactic ads saw the paradigm shift from factual to      maturity stage strikes, most practicable changes and
funny advertising in turn spurring creativity in the     variations have perhaps all been done to the product
delivery of humor.                                       already.
Nationwide Insurance dramatized premature ageing         Consider the confectionery industry in India. These
through its “Life comes at you” ads in a manner that     being low involvement items, typically picked up at
not only evoked laughter but also set you thinking.      the cash counter oftentimes as a substitute for coins,
With its “Karo zyaada ka iraada” campaign, Max           sellers realized the need to make their brand sticky’
Newyork Life insurance elegantly portrayed the           enough. Chlormint with its “dobara mat poochna” has
endless loop of our needs (Fig. 1) – a bald middle-      left a lasting imprint on the television space. However,
aged man might have everything that others yearn         let’s wait here and think back to Center Shock ads.

                                                                                                                  Page 17
The Looking Glass

 Vividly weird, remember? And Mentos?1 If it really
 does what it claims it does (“dimaag ki batti jala
 de”), then we are sure its ad-makers are always high
 on a dozen or so Mentos themselves, so smart are its
 ads. The Center Fresh (“zubaan pe lagaam lagaye”
 and Center Fruit (“kaise zabaan laplapaiyee”) genre
 has also deservedly collected its share of rave
 reviews. And of course, the Happy Dent ads (Fig. 2)
 where shining teeth substitute for lights has ended
 up lighting innumerable advertising awards
 functions, again expectedly enough. The learning is,
 when you cannot get any more creative with the
 product, you look towards the communication!
                                                            Fig. 3: The Creativity Matrix



                                                            High product maturity coupled with high product
                                                            Definitely Creative – the Grossly Commoditized


                                                            miniaturization makes the product grossly
                                                            commoditized leading the industry to turn to creative
                                                            communication.


                                                            Despite high maturity, the product still retains its
                                                            Probably Creative – the Value Driven


                                                            importance due to the value/benefit driven nature of
                                                            these industries. Creative advertising acts as a
                                                            Positive Reinforcement, provided the consumer’s
 Fig 2. A still from the Happy Dent-white ad                perceived value of the product is high.


                                                            Typically, products/concepts are in a nascent stage
                                                            Possibly Creative – the Newbies

 Although we’ve seen numerous cases where this
 Collective Creative-isation – a Myopic Utopia

                                                            and have the need to demonstrate value, and doing so
 creative epidemic was a live-wire that energized an
                                                            in an outlandish manner can at best be a point of
 otherwise listless industry, the fact still remains that
                                                            difference-not too relevant to the consumer.
 there is no innovation like an innovative product.
 Especially in a value driven, high involvement
 industry like Fast Foods, the fastidious consumer
                                                            These are industries where the product itself has an
                                                            Definitely Uncreative – the No-Nonsense Elite

 has the uncanny knack of looking beyond the fluff
                                                            effectively endless scope for innovation; these are
 for the real quality of food. Thus, while all American
                                                            typically expensive high-involvement products, eg:
 fast food operators like McDonald’s, Burger King,
                                                            white goods. Here, the marketer simply does not see
 Wendy’s etc found it worth the while to come up
                                                            the need to be creative.
 with and invest in innovative mascots, they realized
 soon enough (in 2009) it was not really working.
 The attention shifted swiftly to the food on the
                                                            Conclusion

 platter than the mascot on the signboard, and              From this discussion and the examples explicated
 justifiably so.                                            here, it is evident that there does exist what may just
                                                            be called a tipping point of creativity- a point, a
                                                            condition after which all players in the industry feel
                                                            the urge and mostly succeed in being creative. The
 Drivers of Creative-isation – a Generic

                                                            tipping point surely is different for different
 model for all Industries

 Of the factors identified, the two most influential        industries, but one can, more so in hindsight, explain
 (product maturity and product miniaturization) co-         why players, as a collective, chose to focus more on
 create the framework (Fig. 3) that explains the            the communication than other avenues that at least
 conditions under which an industry becomes                 appear to demand and deserve equal, if not more,
 collectively creative:                                     attention.


                                                                                                             Page 18
                            The Looking Glass

                                             SOCIAL MEDIA MARKETING:
                                                THE NEXT BIG THING

                             Abstract                                     the Indian context, one of the most
                                                                          successful Social Media marketing
                             In the Indian online advertising space,      campaigns ever run is undoubtedly
                             which is still in its nascent stage, the     the “Sunsilk-Gang of Girls” campaign.
                             role of social networking sites in           With 754692 registrations till date,
                             marketing has been growing at a rather       the site itself has become a mini-
                             sluggish pace. This article tries to look    social network of sorts. The buzz that
                             at how businesses can actually leverage      this campaign has created has been
    ABOUT THE                the power of networking in the online        of tremendous help to Sunsilk in
                             space to differentiate from their
     AUTHOR                                                               increasing its top of the mind brand
                             competitors and thus emerge successful       recall value amongst girls, the group
  Kothapalli Sandeep is a    in an increasingly competitive scenario.     that the shampoo targets with the
                             This shall be illustrated by citing some     greatest fervour. With networking,
 2nd year PGP student at
                             classical examples of how businesses         messaging and chat rooms, a team of
   IIM Ahmedabad. He
                             have     benefited      through     social   world renowned hair experts, who
holds a Bachelor’s degree    networking and thus assert that Social       call themselves “The Expert Studio”,
      in Metallurgical       media marketing is going to be the next      give advice to girls on hair grooming
    Engineering from         big thing in the online space.               habits and the diet required to
     Jawaharlal Nehru                                                     maintain a healthy hairdo.
Technological University     Introduction
(JNTUH) Hyderabad and                                                     Platforms
                             As part of their integrated marketing
     can be reached at       strategies, companies are increasingly       A social networking site essentially
9sandeepk@iimahd.ernet.      looking      towards     using    social     acts as a common platform, bridging
             in              networking sites and community blogs         the distance between long lost
                             for promotional and brand building           friends. These sites enable people
                             activities. In technical terms, this is      with common interests to come
                             better known as Social Media                 together. The messages that spread
                             Marketing, a relatively new marketing        like wildfire in the online social
                             concept that is fast catching up thanks      networking space are perceived to be
                             to the wide reach and pervasive nature       absolutely true and trustworthy as
                             of Web2.0.                                   they apparently come from a trusted
                                                                          source (read friends and relatives)
                             Traditional   Marketing               Vs
                                                                          rather than the company or the
                             Social Media Marketing                       brand itself. The recent Modi-
                             Traditional      marketing      is    like   Tharoor      controversy     stands
                             “Broadcasting” by the marketer and           testimony to the fact that news
                             basically involves a “Push Strategy”.        spreads very fast through social
                             This is in stark contrast to Social media    networking sites and quickly
                             marketing which is more like a               pervades      other    forms      of
                             “Conversation” with the consumer and         communication media too.
                             hence involves a “Pull Strategy”. Before
                                                                          Social media marketing happens on a
                             looking at why Social media has been
                                                                          huge     splatform   of    websites
                             so successful and effective in               pertaining to social networking.
                             advertising, let me cite an example. In
                                                                          There are various tools that the
                                                                          marketers use namely


                                                                                                           Page 19
The Looking Glass

   • Social networks : Wall posts, fan pages and         drop in the number of negative blogs (down from
     “Likes” on the Facebook page of an                  49% to 22%) written about Dell amply supports
     organization                                        this assertion.
   • Live blogging and Tweets to announce
                                                         Viral marketing is something that has also
     promotional campaigns and product offers
                                                         received a shot in the arm with the sudden
   • Link sharing on LinkedIn, Facebook and              explosion of Facebook in the Indian online social
     Twitter                                             media space. Viral ads that spread like wildfire
   • Viral Marketing through videos on YouTube           through social networking sites like Facebook
                                                         once they are uploaded on YouTube have become
 These tools enable proactive engagement of the
                                                         a common sight. The success or failure of a viral
 consumers         thereby    facilitating    better
                                                         campaign is measured in terms of the number of
 communication between them and the company
                                                         views it is able to garner, its penetration amongst
 about their preferences. The company is also able
                                                         the online users and the ranking that YouTube
 to efficiently track and monitor the effect of their
                                                         and its users give it. One of the most successful
 advertising campaigns on the consumers. This is
                                                         Indian viral campaigns was Virgin Mobile’s
 the prime reason why marketers are increasingly
                                                         “Indian Panga League” which has over 2.7lakh
 embracing online social media.
                                                         views till date. Though the ad was banned from
                                                         being broadcasted on TV, it instantly struck a
                                                         chord with the youth which is the company’s
 How does Social media marketing

                                                         primary target segment.
 happen?

 Organizations need to realise that these tools
 complement and expand the existing marketing
 resources and are not meant to replace them. The
                                                         Emerging trends in social media

 tool an organization uses to communicate in the
                                                         marketing

                                                         Social media marketing is the next big thing
 online social media space depends on the goal(s)
                                                         according to experts. According to the research
 of their marketing plan. The various marketing
                                                         done by JuxtConsult, a leading online market
 objectives that online social media help
                                                         researcher, 78% of the online users actually trust
 organizations to achieve are:
                                                         and believe in peer recommendations rather than
   • Broadcast of news, brand and product                trusting product/brand related claims by the
     updates; new product launches and PR                organizations. Now let us look at some of the
                                                         trends that are set to make Social media
   • Redressing   consumer        complaints     and
                                                         marketing the next big thing in the online media
     consumer service
                                                         space.
   • Advertising and promotional campaigns
   • Viral marketing                                    • The popularity of mobile browsing is on a rise.
                                                          With the recent 3G auctions promising to bring in
 An excellent example of a corporate firm using the       an era of fast and seamless browsing, information
 online social media is Dell Corporation. It runs a       transfer would be faster than ever. The cheapest
 community blog better known as “Direct2Dell”.            3G enabled handset now costs around $50,
 There is a forum called the “Owner’s Club” where         manufactured by the Chinese handset maker
 consumers are free to discuss product updates            Huawei. With 50% of Indian population already
 and comment on new product releases. Dell also           empowered with cellular handsets, there is every
 takes care of its consumer complaints through this       possibility that in future mobile handsets will
 interactive blog and uses the blog to update and         become the primary gateway to accessing the
 broadcast new product launches apart from                Internet. Hence, it’s not surprising to note that
 seasonal promotional campaigns and routine               Facebook has recently come up with
 advertising. In a way, this interactive blog has         “0.facebook.com” which the official Facebook blog
 helped Dell improve its falling reputation               describes as “a new mobile site that includes all of
 primarily because it allowed its consumers to            the key features of Facebook but is optimized for
 interact in a more proactive manner. The gradual


                                                                                                         Page 20
The Looking Glass

  speed. It initially is available through more than   game to attract and retain their consumers. Social
  50 mobile operators in 45 countries and              networking sites and community blogs just work
  territories with zero data charges.”                 perfectly for the marketers in the BFSI sector.

• Sharing is an important phenomenon in social         But as the age old adage goes, every coin has two
  networking sites like Facebook and Twitter,          sides to it. While we have looked at how social
  where online users actually share URL’s and          media marketing is going to set the online media
  news feeds. The “Like” button feature in             space on fire, there are again certain inherent
  Facebook has undoubtedly revolutionized              limitations associated with it. B2B companies and
  sharing. Apparently, the number of “Likes” your      niche brands need to be careful while marketing
  status message or comment in Facebook receives       through social networks and community blogs,
  is a measure of how popular you are amongst          because they can’t afford to have negative word of
  your friends. According to “ShareThis”, the          mouth publicity for their services or product
  engagement value for traffic coming through          offerings. Thus, for companies, the element of
  shared links is much higher than that coming         goodwill and trust becomes an important
  from search engines. This probably explains why      evaluation criterion during the decision making
  Google is very jittery about competing head on       process, revolving around public relations and
  with Facebook. Sites now see up to 50% more          marketing. This probably explains why the BFSI
  engagement from shared links than search. That’s     sector has embraced social media marketing more
  why “Horizontal portals” like Yahoo and “Vertical    than anyone else. BFSI companies play the
  portals” like Cricinfo have incorporated the         “goodwill and trust” game to attract and retain
  “Share this article” toolbar on their web pages.     their consumers. Social networking sites and
                                                       community blogs just work perfectly for the
• Similarly Youtube which was once considered          marketers in the BFSI sector.
  just a video posting portal is now being seen
  more as a means for increasing brand recall value
  and promoting social awareness on various
                                                       Conclusion

  issues through viral ads. The leading Hindi news     Social media marketing is still in its nascent
  channel “Aaj Tak” came up with a series of award     stages in India and offers an exciting opportunity
  winning ads that have grabbed eyeballs and also      for both advertisers and marketers. Corporates
  led to an increase in “Aaj Tak’s” top of the mind    need to realise the power of social networking
  brand recall value.                                  and embrace it to complement their existing
                                                       marketing resources thereby increasing brand
                                                       recall of their products and/ or services and
                                                       promoting consumer engagement.
Inherent Limitations

But as the age old adage goes, every coin has two
sides to it. While we have looked at how social
media marketing is going to set the online media
space on fire, there are again certain inherent
limitations associated with it. B2B companies and
niche brands need to be careful while marketing
through social networks and community blogs,
because they can’t afford to have negative word of
mouth publicity for their services or product
offerings. Thus, for companies, the element of
goodwill and trust becomes an important evaluation
criterion during the decision making process,
revolving around public relations and marketing.
This probably explains why the BFSI sector has
embraced social media marketing more than anyone
else. BFSI companies play the “goodwill and trust”



                                                                                                    Page 21
                          The Looking Glass

                                                     THE APPLE STOREy

                           The year 2000 was turning out to be a    boys”. There were just not enough of
                           bad one for Apple. Microsoft was         them.
                           turning into an unstoppable force,
                           reaping the benefits of years of         It is often said that once you buy
                           mismanagement in Apple and no            Apple, you stick with it. This
                           object, let alone an immovable one, in   especially holds true in the PC
                           sight. Market share had nosedived to     segment, where usage habits rarely
                           2.8% and recent innovations brought      stray out of comfort zones.
                           in by Steve Jobs were not delivering     Unfortunately for Apple, the same
                                                                    applied to Windows users as well.
    ABOUT THE              the expected results.
                                                                    Steve Jobs realized that to truly
     AUTHORS               So what did the company, often           appreciate their brilliant design,
                           acknowledged as the most innovative      Apple     products    had    to    be
Sandip Devoarkonda is a
                           in the world, do to climb out of this    experienced and mere window
1st year PGP student at    slump ? It simply opened a couple of     shopping that most electronics
     IIM Calcutta.         stores. And then some.                   retailers offered would never entice a
                                                                    newbie. To challenge the Microsoft
                           For a consumer electronics company,      juggernaut, Apple needed these
                           Apple rapidly opened gorgeous stores     users. And fast. Jobs argued that he
                           all around the world. Today it has       needed only a fraction of Windows
                           around 300 stores in 11 countries.       users to switch over to his side and
                           Each store reflects the Apple            the margins would take care of the
                           philosophy: simple, functional and       bottom-line. All he wanted was for
                           award winning design.                    some users to go through the Apple
                                                                    experience. Enter the Apple Store.

                                                                    Flagged off initially with a typically
                                                                    modest target of 5% increase in
                                                                    sales, these stores doubled up as a
                                                                    medium to sell the Mac lifestyle
                                                                    beyond the fan boys.

                                                                    For a while, the stores remained just
                                                                    that.    Modest      sales,    nothing
                           Fig. 1 Apple Store in Shanghai           phenomenal but the word was
                                                                    spreading. Meanwhile, another storm
                           So, Why a Store?
                                                                    was brewing. IPods. IPhones. These
                           From the first Apple-I toolkit to the    phenomenal products got visitors
                           revolutionary Macintosh series of        thronging to the stores and most of 8
                                                                                                       Page
                           computers, Apple products had always     them were first time Apple
                           been innovative. As we now know,         customers. A few of them were
                           with Apple, the price was never really   bound to consider the Macs and
                           an issue. So what was it that kept the   Macbooks. In 2009; there were 167
                           company away from profitability in the   million visitors in Apple stores
                           late 1990s? Surprisingly, the problem    leading to USD 28.6 billion in sales
                           lied with what most companies can        (excluding the figures for the holiday
                           only ever dream of: the fanatic “fan-    season!). Around 50% of Mac
                                                                    customers were new to the product
                                                                    line.

                                                                                                     Page 22
The Looking Glass

   200
                                                         Quiz 2
   150
                                                         1. Which product had the tagline “Born in a
   100
                                         Sales($ Bn)        Gym, not in a studio”?
    50                                   Footfall(Mn)
     0                                                   2. Which company is the world’s largest
                                                            manufacturer of digital cameras?

                                                         3. Which search engine launched a major ad
                                                            campaign focusing on the tagline - "Faster.
Fig 1 Data from Apple Stores worldwide

Apple never tried to position these stores as Point of
                                                            Easier. Bingo"?


Sales. They primary function is to promote customer
                                                         4. What is the claim to fame of Karen Lunel

interaction with the product line through a Genius
                                                            Hishey in Indian advertising?

Bar, a dedicated group of “knowledge-tenders” who
answer any product related query. Most stores
                                                         5. 'Pegasus' meaning the flying horse, is the

conduct summer camps for kids, free workshops to
                                                            logo of Career Launcher in India. Which

amateurs and professionals alike on topics like
                                                            famous magazine has the same logo?

digital photography, music and moviemaking.
Topics that most professionals will agree are best
                                                         6. Which brand had the ad slogan 'Tomorrow


dealt on an Apple product. They even have a team
                                                            is mine'?


that helps small and medium enterprises with
                                                         7. 'What are you made of?' - is the tagline of

selecting products that can enhance their business.
                                                            which Swiss watch?

                                                         8. The 'Joy of flying' is which airline?

                                                         9. 'Live every moment' was the tagline of
                                                            which company?

                                                         10. Which motor companies' logo is referred to
                                                             as 'Bow Tie' ?

                                                         11. Which Companies' tagline is 'Better Sound
                                                             through Research' ?

                                                         12. Which Country's ad campaign has the line
                                                             "Where the bloody hell are you? "

Fig 2Genius Bar at an Apple Store                        13. Which automotive brand has "Life. Liberty.

The location of these stores is considered so
                                                             Pursuit of the American Way." as its tag

strategically important, rumor has it Jobs personally
                                                             line ?

signs off on them. Sample this. In 2008, Apple
opened their largest store till date in Boston. Why?
                                                         14. The most expensive part of the body ever to

Boston houses about a quarter-million college
                                                             be insured are the legs of a famous football

students.
                                                             player for 60 million pounds. Name the
                                                             player.

Simple. Brilliant. Apple.

                                                         Quizzes,    Brand  Trivia     and
                                                         Identify the personality were
                                                         compiled by T.R.Rahul, a 2nd year
                                                         student at IIMB


                                                                                                      Page 23
                            The Looking Glass

                                      AMBUSH MARKETING: ETHICAL OR
                                              UNETHICAL
                             Abstract                                   many incidents of Ambush marketing
                                                                        which we are going to deal with here.
                             Ambush marketing has emerged as a
                             side effect of sponsorship marketing       Origin
                             by leading companies. This write-up
                             deals with the forms of ambush             Ambush marketing is a term often
                             marketing and the various ethical          whooshed in industrial domain.
                             issues related to it. It delves into       Marketing guru Jerry Welsh1 had first
                             causes which lead companies to             coined the word Ambush marketing
    ABOUT THE                pursue this parasitic form of              as a situation in which a company or
                                                                        product seeks to ride on the publicity
     AUTHORS                 marketing and reap benefits at the
                             cost of competitors. It reveals some       values of a major event without
  Himanshu Nazkani is a      cases which deal with ambush               having to finance the event through
                                                                        sponsorship.
2nd year PGP student at      marketing. The discussion also looks
IIM Bangalore. He holds      at the positive aspects of ambush
                                                                        It occurs when one brand pays to
                             marketing leading to increase in
   a Bachelor’s degree in                                               become an official sponsor of an
                             competition. Finally it suggests that
 Electronics Engineering                                                event and another competing brand
                             very little legislation is there against
 from IIT, Guwahati and                                                 attempts to cleverly connect itself
                             ambush marketing and countries
     can be reached at                                                  with the event, without paying the
                             have to take firm steps towards
                                                                        sponsorship        fee     and,   more
himanshun09@iimb.ernet       combating it.
                                                                        frustratingly, without breaking any
            .in                                                         laws. Ambush or guerilla marketing
                             A South African budget airline
                                                                        is as undeniably effective as it is
  Suman Verma is a 2nd       Kulula.com's1 ad described it as the
                             "Unofficial National Carrier of the        damaging, attracting consumers at
year PGP student at IIM
                             You-Know-What". It also had the            the expense of competitors, all the
  Bangalore. She holds a                                                while undermining an event’s
                             pictures of stadiums, vuvuzelas and
   Bachelor’s degree in                                                 integrity and, most importantly, its
                             national flags. But FIFA said the
 Electronics Engineering     airline could not use the symbols -        ability to attract future sponsors.
from NIT, Jaipur and can     even the word "South Africa”. It
                                                                        Ambush marketing is also sometimes
      be reached at          claimed that the advertisement
                                                                        called as ‘parasitic marketing’.
sumanv09@iimb.ernet.in       breached South African law "by
                                                                        Parasitic life means dependent life.
                             seeking to gain a promotional benefit
                                                                        Analogous to a parasite the
                             for the kulula brand by creating an
                                                                        ambusher is reaping out benefits at
                             unauthorized association with the
                                                                        the cost of his competitors.
                             2010 FIFA World Cup1". However,
                             Kulula had the argument that FIFA          Direct and Indirect forms
                             did not tell that they could not use
                             soccer balls, or the word 'South            Direct ambush marketing: In
                             Africa', or Cape Town stadium, or the        1994     football   world     cup,
                             national flag or vuvuzelas. Later on         MasterCard received exclusive
                             Kulula pulled back its ambush ad             rights for using world cup logo,
                             after a FIFA complaint that it               but       a     rival     Sprints
                             infringed its trademark during the           communication used the logo
                             2010 World Cup. Although Kulula              without permission. This is direct
                             lost the battle but still it got enough      attack but can be defended by
                             media attention and publicity out of         laws.
                             the whole scandal. This is one of the

                                                                                                         Page 24
The Looking Glass

 • Indirect ambush marketing: It can take place by            want to buy, or can afford to buy, do buy; others
   several means like sponsoring the broadcast of             have to consider their marketing alternatives.
   the event, sponsoring subcategories of the major           The point is that, in buying a sponsorship, a
   event etc. To become the official sponsor of               company buys only that specific event. It does not
   the 2002 Winter Olympics in Salt Lake City,                purchase the rights to all avenues leading to the
                                Anheuser-Busch         paid   public's awareness of a property; and neither does it
                                more than US$ 501             buy the rights to entire consumer mind space in
                                million. In accordance        which the sponsorship is one resident. The mind
                                with its agreement, it got    space here refers to various associations (ideas,
                                all rights to use the word    images, and events) that occur in the consumers'
                                "Olympic" and the five-       minds when they think of the sponsored space. This
                                ring logo. Schirf Brewery,    mind space is not created by anyone and hence no
                                a local (and very             one "owns" it.
                                small) company, came
                                                              Non-sponsors want their product or service to be a
                                up with the rather
                                                              part of the mind space without sponsoring the event.
    ingenious (and apparently legal) idea of marking
      Figure 1: Unofficial Beer



                                                              So long as they do not claim that they are the sponsor,
    its delivery trucks with "Wasutch Beers. The
                                                              they are free to pursue other event-related activities
                                                              (e.g., television advertising on the event broadcasts,
                                                              onsite events, and other such activities), to
    Unofficial Beer 2002 Winter Games." In


                                                              underscore their company's support of, and
    accordance with copyright rules, Schirf had


                                                              dedication to, the thematic space which the event
    avoided using either the word 'Olympics' or the


                                                              occupies.
    five-ringed logo. However, without a doubt it had
    connected itself to the games.

                                                              The contrary notion, put forward by event organizers,
                                                              that non-sponsors have a moral or ethical obligation
Causes of Ambush marketing

There are several reasons why companies go for
ambush marketing. Few of which are1                           to market themselves totally away from the thematic
                                                              space of a sponsored property, is absurd because
 • Exponentially increasing (almost prohibitive)
                                                              sponsors have bought a specific property; they have
   sponsorship prices
                                                              not bought a thematic space.
 • Increasing marketing competition
 • Clutter in sponsorship (Too many brands                    Given the above then, the real marketing game and
   associated with event)                                     the concerns of ethics and fairness begin once a
                                                              sponsorship has been undertaken.
 • Sponsorship enables the marketers to target
   their consumers in an efficient manner. Every
   company wants to enter even if it doesn’t have
                                                              How ethical is Ambush Marketing?

   money and resources. So if BMW wants to reach              Ambush marketing has always remained in debates
   CEOs, they can do so more efficiently by                   over the issue of ethics. There is a blurred line of
   sponsoring a golf tournament than by                       demarcation between ethical and unethical issues in
   advertising on TV                                          ambushing, which is often intruded into other side.

    Sometimes companies have no other platform                ambush marketing? Usually, somewhere out of view.
                                                              Moreover, where does the law stand in such cases of

    for reaching the masses due to governmental               Unlike piracy or counterfeiting, ambush-marketing
•

    restrictions on advertising etc. (for example             cases are rarely actionable, especially if the
    many tobacco & alcohol companies cannot                   ambushers know what they are doing. In 1992, the
    directly advertise)                                       granddaddy of boy bands New Kids1 on the Block
    Brand's image enhancement by virtue of                    sought legal action against newspaper USA Today,
                                                              when it set up a charge-per-call service asking
    association with a high profile event
•

                                                              readers to tell them what they thought of the New
Given the above situation, the companies who                  Kids. The New Kids’ suit ended unfavorably.




                                                                                                               Page 25
The Looking Glass

In India there is almost no protection against
indirect ambush marketing. However, for direct
                                                         Challenges in Ambush marketing

ambush marketing there are several laws like the         Ambush Marketing has to be within the premises of
Trade Practices                                          law, out of which it is illegal and can ruin the
                                                         company’s image. It needs creativity to design
Act, Trade Marks Act and The Copyright Act etc.          ambush strategy. The fear of law suits and heavy
Ambush marketing cases, covered by media are             penalty/compensation is always there. You never
those involving elite brands having enormous             know what could be the competitor’s reaction. Once
marketing capability and funds such as Nike, Adidas,     consumers get to know about ambush marketing
Reebok or Coca-Cola and Pepsi. Between such large        their attitude towards the company practicing it may
and equal players, ambush marketing is deemed a          become negative.
last ditch technique, and the question of ethics is
more or less unimportant. To them, however
ambush marketing seems to be a last resort and the
                                                         Conclusion

                                                         Ambush Marketing can be understood as a marketing
only way to compete.
                                                         strategy occupying the consumer mind space for an
                                                         event. What Ambush Marketing is not, is some
                                                         underhanded attempt to take advantage of sponsored
Case studies from India

Studies have shown that ambush marketers often           properties without paying the associated fees.
get at least as much mileage as the official sponsors.
That explains why ambush marketing is increasing         Successful ambush strategies feed on ill-conceived
at an alarming rate.                                     sponsorships and inept sponsors; in that regard,
                                                         Ambush Marketing is the natural result of healthy
                                                         competition and has the long-run effect of making
                                                         sponsored properties more valuable, not less.
                                                         Although ambush marketing is not illegal or
                                                         unethical, it may sometimes lead to severe damages
                                                         to one company’s image and undue benefit to the
                                                         other. Proper legislation is therefore required to
                                                         combat such trends in marketing environment.




Kingfisher Airlines adopts an innovative marketing
Kingfisher’s Ambush Marketing


strategy to snatch attention from Jet Airways'
advertisement. They want to tell that the reason
behind Jet Airways' change is Kingfisher. It seems
like Jet Airways will have to wait for a Kingfisher
Airlines hoarding to come up before it lets the good
times roll in this game of advertising one-
upmanship.



Perhaps the best known example of ambush
Nothing Official about it


marketing in India came during the 1996 cricket
World Cup when Coke paid Rs 40 crore1 to be called
an official sponsor, but Pepsi's brilliant counter ad
"nothing official about it" clearly occupied more of
the consumer's mind space.



                                                                                                       Page 26
                              The Looking Glass

                                        TIP-TAP-TOE: CLASSIC OR ARCADE?

                               In the roar of the red ocean as the       Classic or Non-classic?
                               wave of social media crashes at the
                               threshold of marketing practice, it is    However, the game has two distinct
                               but natural to wonder at the              variants – the classic mode and non-
                               gravitational force that kindled the      classic mode as we call them.
                               wave and made it so huge.
                                                                         ‘Classic’ mode refers to the slightly
                               As noted by academicians, the             less demanding version of building
                               phenomenon of ‘Tipping point’ is          up the captive market for a product
     ABOUT THE                                                           which       inherently   has      the
                               visible in the recent social media
      AUTHORS                  wave. So is it in the viral videos of     characteristics that make it suitable
                               yesteryear and the underdog movies        for Tip-Tap-Toe. They are the classic
Srilakshmi Mukkavilli is                                                 network effect products that come to
                               that succeeded at a surprising scale.
a 2nd year PGP student                                                   mind when one talks of exponential
     at IIM Calcutta                                                     demand growth. For these products,
                                                                         utility increases as the user base
 “Let us call this game of                                               increases. Examples can be social
 marketing the „Tip-Tap-                                                 networking sites like Facebook,
     Toe‟: „Tip‟ping the                                                 industry associations where all the
 market by targeting the                                                 players need to come together,
    powerful connectors,                                                 telecom services with huge within-
„Tap‟ping into the market                                                the-network discounts, products like
                                                                         iPod,     Xbox    with   proprietary
  by creating the context
                                                                         applications. In all these cases,
   to ensure acceleration                                                volume is required to render the
  and being on one‟s toes                                                business model possible in the first
  to protect and maintain      They point out that ‘Tipping point’ is,   place.
 the captive market since      in the context of marketing, the
                                                                         ‘Non-classic’ mode (to denote the
 it can nosedive as fast as    phenomenon in which an idea or
                                                                         alternative for ‘classic’ mode) refers
  an avalanche.However,        brand, with a considerable worth in
                                                                         to marketing products which have an
the game has two distinct      itself, expands its scope through a
                                                                         intrinsic spark, through viral route.
    variants – the classic     few people who have high degree of
                                                                         An important difference here is that
   mode and non-classic        social connectedness, in a context
                                                                         the functional utility of the product
                               conducive to such viral transfer.
            mode”                                                        does not change with the number of
                               This explains the success of social       people using it. Marginal consumers
                               media sites like Facebook and videos      do not enjoy any extra ‘functional’
                               like ‘Charlie bit my finger – Again!’     utility compared to the early
                               transmitted virally through it.           adopters. However, it should be
                                                                         noted that the two consumers do not
                               Let us call this game of marketing the    get the same ‘total’ utility, because, as
                               ‘Tip-Tap-Toe’: ‘Tip’ping the market       the product becomes famous, that is
                               by targeting the powerful connectors,     as more people start using it, the
                               ‘Tap’ping into the market by creating     ‘emotional’ utility obtained by the
                               the context to ensure acceleration        marginal consumers is much higher
                               and being on one’s toes to protect        than the ones who used the product
                               and maintain the captive market           when it was not so famous.
                               since it can nosedive as fast as an       Success stories
                               avalanche.

                                                                                                            Page 27
The Looking Glass

include viral videos, hit movies, brands like crocs       both the cases lest the market should grow only in
etc. In general, products that can potentially become     silos.
famous by herd behaviour initiated by a few opinion
leaders are examples of this phenomenon.                  ‘Tap’ stage:

Thus, though the process of multiplication of             Though the function of demand is exponential in
demand is the same for ‘classic’ and ‘non-classic’        both cases, the mechanism of build-up is different
products, the motivation behind a marginal                for the two cases.
consumer adopting the product is different. It is the     As the sheer volume of people using the same
exponentially increased functional benefit in case of     telecom provider (a classic product) increases, it
classic products and the sum of a ‘fixed’ limited         makes economic sense to the marginal customer
functional benefit (the spark in the product) and an      to switch to that service provider. i.e., the product
exponential emotional benefit in case of non-classic      promotes itself with increased benefits to offer.
products.
                                                          Whereas in non-classic products, the product
                                                          practically remains the same (except for the
                                                          support of say, goodies etc. in the name of a movie
What difference does it make?

                                                          etc. which help increase the movie’s appeal to be
‘Tip’ stage:

For classic products, the focus is on improving the       watched) and the emotional benefit hinges to a
very value proposition of the product by building up      large extent on the fact that opinion leaders have
volumes as fast as possible, in order to exist in         adopted the product.
business beyond the initial protection period. Hence
                                                          Similarly, the environment conducive for build-up
the strategy involves ‘seeding’ the market (‘Tip’
                                                          should be more carefully maintained in non-
stage) often by offering the product for free. From a
                                                          classic mode compared to classic products
marketing viewpoint, however, this ‘seed’ market
                                                          because the reason to buy classic products is
need not be so limited in size and the people need
                                                          strong enough and not as sensitive to
not be meticulously tested for high opinion
                                                          environment as that for non-classic ones. So the
leadership factor.
                                                          environment should be more energetic to
For non-classic products, the selection of seed           reinforce brand image and should carry the
market is important as it is limited by high costs        ‘legacy’ of being liked by many people to
involved to target the specific set of audience,          encourage consumption of non-classic products.
convince them and convert them at least to
‘missionaries’ if not ‘evangelists’ of the brand. These
people are scarce, given the high opinion leadership
                                                          ‘Toe’ stage:

                                                          Here the classic products are at a much greater
factor required. However, the connectedness factor        risk due to inadequacy of information to a
of people in the seed market is equally important in      consumer. That is, for a classic product, if for any




                                                                                                          Page 28
The Looking Glass

reason people start pulling out from the telephone
network, the marginal consumer gets the
information much quicker than the marginal
                                                         Answer Quiz 1:

                                                         1. Nokia started as a wood pulp mill, the
consumer in non-classic products, who is in fact not
                                                            company expanded into producing rubber
much affected by the recent decline in popularity of
                                                            products in the Finnish city of Nokia. The
the video. It was a famous video and holds the same
                                                            company later adopted the city's name
alluring interest as long as he/she has not watched
the video. The fact that the video was not being         2. British Physics Laboratory
shared so frequently by so many people these days
does not matter so much to him. In this sense, the       3. Monster.com
brand image of the non-classic product is more
                                                         4. Wrangler
immune to downfall.
                                                         5. Bharti Airtel
Only difference from a gaming environment here is
that marketers cannot choose between the two             6. Doordarshan
variants (strategies) of the Tip-Tap-Toe game – it is
decided by the nature of the product.                    7. Spanish

                                                         8. West Indian Vegetable Products Ltd

                                                         9. Freescale Semiconductors
What’s in it for India?

‘Classic’ applications possible in the near future in
India range from capturing the 3-G market, political
                                                         10. Electrolux India
parties (only a majority of vote volume would
ensure realization of value proposition – the
agenda), issue of UID cards (complete adoption of
standardization by Indian population is required for
the use of UID to be started), to building a frequent
                                                         Answer Quiz 2:

                                                         1. Bajaj Pulsar
flier community for low cost airlines.
                                                         2. Nokia
Non-classic applications are generally ‘aspirational’
for the marketers to create iconic brands by driving     3. Yahoo
consumption through consumers themselves, riding
on the power of initial adopters. Hence practically      4. 1st Liril Girl
any category that has a functional ‘and’ an emotional
                                                         5. Reader’s digest
value which increases with popularity of the brand
is fit to apply the non-classical approach. Indian       6. Reebok
brands face a competition from global brands on
this front since the global brands have a head-start     7. TAG HEUER
in terms of the iconic following they have in their
                                                         8. Jet Airways
own nations. Since Indians consumers are exposed
to the huge imported brand equity from day one, it       9. Airtel
is but likely that the consumers are swayed even
before the Indian brand, despite having same             10. Chevrolet
functional characteristics, tries building up the seed
                                                         11. Bose
market. However, the ‘approximately unique’
brands where there are no direct competitors with        12. Australia
the same functionality, like movies, celebrities etc.
the marketers can explore herd behaviour to              13. Cadillac
promote the cult image.
                                                         14. David Beckham




                                                                                                     Page 29
                          The Looking Glass

                                                   CLOUD MARKETING

                           In the modern world of business, it is      have a well established marketing
                           useless to be a creative original thinker   team in place for FMCG and Retail
                           unless you can also sell what you           sectors. But if we glance at the IT
                           create - David M. Ogilvy                    sector, barring few global companies
                                                                       like IBM, most companies do not have
                           Marketing    is          all    about       large marketing teams. IT companies
                           selling soaps!                              do have decent sales forces but those
                                                                       mostly look after generating leads and
                           No more. Information Technology
                                                                       dealing with customers.
    ABOUT THE              companies today need marketers to
                           market their services and products.         If we look at the developments
     AUTHOR
                           Though, till today most of the IT           happening in the IT industry in the last
Surjeet Singh Choudhary    companies       have    had     limited     few years, one of the buzzwords is
                           marketing capabilities. Most of the IT      Cloud computing. It is Internet-based
    is a 2nd year PGP
                           companies (especially medium size)          computing in which shared resources
student at IIM Lucknow.
                           have a strong sales force but limited       are provided on demand. Cloud
  He holds a Bachelor’s    experience in other marketing               computing customers do not own the
  degree in Information    dimensions like public relations. Here      physical infrastructure; instead they
     Technology from       it can be argued that identifying and       consume resources as a service and
  Engineering College      targeting your audience in the IT           pay only for the resources that they
Kota and can be reached    sector is easier than traditional           use. Inside the cloud arena we have
             at            marketing sectors like FMCG or              two basic players, the cloud hosts like
                           Retail; so the marketing efforts            Amazon, Microsoft etc. and the cloud
    surjeet@iiml.ac.in
                           required may be minimal, but in             service providers which basically host
                           today’s     business scenario       the     their softwares on the clouds for their
                           importance of communicating your            customers. Most IT sector companies
                           value          proposition         and      have always lacked on the marketing
                           differentiating from competition in         front and now it is high time that they
                           technology      sector    cannot     be     focus on it, especially the cloud
                           undermined. Today Information               software vendors. There are several
                           Technology industry is changing very        reasons for this:
                           quickly, and this change can be
                           primarily attributed to the following.      1. With       evolution      of      new
                           Firstly,    the    pace    at     which        technologies at such a rapid rate it
                           commoditization is happening in IT is          becomes           necessary         to
                           incredible, as Nicolas Carr talks about        continuously         update        the
                           it in his article titled “IT doesn’t           customers with the benefits
                           matter”. Secondly, considering the             associated.
                           fast pace at which technology evolves,      2. With IT going into the commodity
                           it becomes necessary for companies             mode, marketing makes more
                           to communicate the benefits of the             sense. Commodity businesses
                           latest versions.                               mostly compete on the basis of
                                                                          price but if you want to position
                           One of the most important jobs of              your company ahead of the
                           marketing is to communicate to the             competition, building a brand for
                           customer the value proposition of the          your company becomes very
                           product/service      being   offered.          necessary. Also, a good brand can
                           Probably this is the reason why we             fetch a slightly higher price for


                                                                                                         Page 30
The Looking Glass

  its products.                                       10. Demand for SAAS applications are

3. When it comes to newer concepts, especially            years. The marketing strategy needs to be in
                                                          forecasted to grow heavily over the next 4-6

   with Cloud computing, it is necessary that you         place now to tap the demand. IDC
                                                          (International Data Corporation) forecasts
   Branding can be used to build their confidence         Cloud Services revenues to reach $55.5Billion
   instill a sense of confidence in the customer.

   level.                                                 in 2014.
4. With margins continuously declining due to         As part of Cloud marketing initiatives companies
   commoditization and competition, branding          should aim at:
   could be used as a means to stretch the profit
   margins. This could be countered as cost would     1. Building a distinct corporate brand image.
   increase with branding; still I believe branding      Aim at building a trusted brand name that
   should work in favor of the seller in the long        would not only project you as a differentiator
   term.                                                 but also help you in attracting best talent.

5. Small and medium sized customers form a large      2. Market as you develop. With technologies
   segment for Cloud applications. Thus one needs        being upgraded almost on daily basis, one
                                                         needs to market them as soon as they are ready
                                                         to go live. Many useful upgrades are not
   a good marketing team to manage mass

   which should facilitate a good chunk of               marketed effectively and thus benefits not
   communications with the smaller customers

   revenues.                                             communicated effectively to the customer.

6. Take care of your customer even more than          3. Market the service not the product. Market
   earlier as all that he/she needs to do now is         the service spectrum that you will provide to
   subscribe to a new cloud provider. Switching          your customer rather than only marketing the
   costs have decreased now with the cloud/SAAS          Software (in SaaS) or the platform (in PaaS).
   models.
                                                      4. Educate your customer. Let the customer
7. Cloud software providers need to use marketing        know about your technology. Engage the
   as a tool to understand their customers and           customer in trainings, webinars etc. This will
   communicate the value proposition of their            also set customer expectations, which is equally
   service/product.                                      necessary.

8. As Cloud Software providers focus on small and     5. Think long term. Cloud vendors spend a lot of
   medium businesses, they need to have more             capital initially and wait for returns in future
   channel partners and thus a more focused              years. Thus, they should focus on the long term
   team to manage them. HCL, a major Indian IT           benefits. A price cut may give them a new
   company has around 150 domestic channel               customer but what really matters is, for how
   partners and are looking at making it 400 soon.       long that customer would stay with the vendor.

9. Failures of Cloud applications are talked about    Few marketing channels that could be used by a
   much more than the internal failures of the same   Cloud player are newsletters, Free Trials, Email
   applications. Cloud computing providers would      Communication, Public Relations, Channel partners
   be under immense scrutiny for their                and Webinars etc. Today all the buzz that we see
   performance and delivery. Thus their               about cloud computing is because of marketing
                                                      done by bigger IT companies that have already
   are always on stake, so they need to have          established the cloud hosting platforms. Now it’s
   reputation and relations with the customers

   better communication with their customers, and     the time for cloud software vendors to take the
   Marketing teams could serve this purpose.          Marketing side of the businesses seriously.
   Remember it took just one disruption in
   Gmail services during Feb 2009 to let it be
   referred to as Gfail!!


                                                                                                    Page 31

				
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