Markathon Nov09

MARKATHON
MARKETING MAGAZINE OF IIM SHILLONG
NOV 2009
COVER STORY
SUSTAINABLE MARKETING
VOL I, ISSUE 7
SPECIAL ATTRACTION: PROF. DIPAK C. JAIN ON TRENDS IN GLOBAL MARKETING
FROM THE EDITOR
reigned over the cherished land of business for years. Further entrenching our corporate reach, we welcome Ms Devita Saraf, CEO Vu Technologies and Ex Director Zenith Computers. Regarded as one of the young tycoons of India, Ms Devita Saraf talks about value transformation in businesses and has also portrayed a picture of Luxury in Technology through her venture of Vu Technologies, in the interview section. I am sure we have been keeping our promise of inspiring you with marketing wisdom and anticipate your strong support and valuable suggestions to help us improve for good. Asit Kumar Jain
Dear Readers,
We began our journey at IIM Shillong with special emphasis on Sustainability. Thanks to the vision of our Director, IIM Shillong is on the verge of positioning itself as the Mecca of Sustainability, an epitome of the next business transformation. Last century witnessed businesses undergo different modes of development; right from assembly line, mass production, HR theories, TQM, IT and Internet to the next expected phase of Sustainability. It is going to be an industry in itself and like companies use ERP/TQM to enhance their productivity, sustainable business practices will be essential in augmenting the value delivered by a company to its stakeholders. Definitely economic crisis has increased its importance, but should we always wait for the D day and then gape for our armory! Think over it. Moreover, is it only limited to the business houses or is it required to play a much bigger Our Sept-Oct 2009 role in the society and the nation as Cover a whole? Now it is the turn of businesses to become responsible in every aspect of their functioning; emphasizing on the total productive development of its stakeholders, following the tenets of sustainability. Especially physical goods companies must initiate this process as they are the everyday friend of society and their action goes a long way in shaping the minds of consumers. I must emphasize Indian companies take a cue from Tesco who is selling products with carbon labelling although its not mandatory over there. The cover story analyzes how three world class corporations are intertwining their marketing strategy with sustainability, reaping exceptional profits and being adored by all. It is definitely a red letter day in the short history of our magazine with none other than the satrap of marketing, Prof Dipak C. Jain sharing his thoughts in couple of pages. It gives me immense pleasure to welcome his invaluable thoughts in this student driven initiative, and wish the flow of his wisdom continues enrich the proven minds. His expertise in the field of marketing and global businesses needs no introduction; being regarded as one of the most profound thinkers in this area. India is endowed to have produced such a terrific mind, who
THE MARKATHON TEAM

EDITOR Asit Kumar Jain SUB EDITORS Dilpreet Singh Gandhi Parul Gupta Pranab Talukdar Ritul Singh Saurav Kumar Bagchi CREATIVE DESIGNERS Soumyasanta Roy Keshav Sahani NEW MEMBERS Debanjana Sinha Kaushik Subramanian Priyanka Pandit Samita Patnaik Samrat Singh Yadav Saurabh Kumar Sinha Varshik Nimmagadda
Markathon | November 2009
CONTENTS
PERSPECTIVE Color Palette: A creative component of brand toolkit
DEBIPRASAD MUKHERJEE | TECH MAHINDRA
4 8 10 13 14
VARTALAAP Devita Saraf

CEO, VU TECHNOLOGIES AND EXECUTIVE DIRECTOR, ZENITH COMPUTERS
SPECIAL ARTICLE Trends in Global Marketing

DIPAK C. JAIN | DEAN EMERITUS KELLOGG SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY
EYE TO EYE Offline Branding vs. Online Branding: What makes marketing successful?
MANISH SHUKLA | IIM K, TUSHAR JAIN | NMIMS
COVER STORY The Imperative of Sustainable Marketing

DR. SANJEEB KAKOTY, VARSHIK NIMMAGADDA, KAUSHIK SUBRAMANIAN, PRANAB TALUKDAR | IIM S
VAIBHAV RAJPUT | MIB-DELHI SCHOOL OF ECONOMICS
PRODUCTOLYSIS Maggi: A friend, A philosopher or a guide?

SHWETA JAISWAL, POOJA MANDALIA | NMIMS
22 24 27 30
STRATEGIC ANALYSIS Park Avenue Brand Extension Strategies in Indian context

ALTAF FAKHRUL MOHAMMED, THATTEY CHINMAY SUDHIR | IIM A
COMPETITION Silent Voice

KINGFISHER: FLY WITH STYLE
UPDATES
SAMRAT SINGH YADAV| IIM S
markathon
3
PANDORAS BOX Sensory Marketing: Marketing through senses!!
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Perspective
COLOUR PALETTE
A CREATIVE COMPONENT OF BRAND TOOLKIT
Debiprasad Mukherjee | Tech Mahindra
Introduction:
Colour is one of the most crucial elements which impacts hugely in creating brand identity. The primary aim of a brand identity system is to encode a brand in customers memory and retrieve it from their memory. In a visual system, the two most powerful components are the consistent recognizable shapes and colours. (Brad VanAuken, brandingstrategyinsider.com). It is considered as the best if these shapes and colours are distinctive, meaningful and appropriate (at least within the product category). Colour can have a significant effect on people's perception of a product or brand in terms of level of recognition & recalling. For instance, burgundy and forest green are perceived to be upscale while an orange label or package indicates an inexpensive item (marketingprofs.com). Colours can actually create an affect on a person's state of mind and cognitive ability as demonstrated by numerous research studies. For instance, pink is assumed to have the power to increase a person's appetite and calm prison inmates (brandingstrategyinsider.com).Not only that, if a brand is sold across the globe in different cultural zone, colours can have different symbolic meanings (not all positive) in different countries and cultures. If a brand is trying to create impact through visuals, it is basically sending certain messages about product or service through certain visual stimulating components what make it special and differentiates it from competing brands. And colour can act as the major Xfactor behind the success of visual branding. Every colour sends a distinct message. This means that if a logo uses four colours, it is actually sending four different messages at once (John Williams, 2008, entrepreneur.com). Even if the messages are complementary, few consumers can remember and
associate that many ideas with your brand if the applied colour fails to trigger memory and evokes emotion. Colour greatly boosts brand recognition and plays a huge role in a consumer's choice of product if it as wellchosen in terms of brand identity creation and reinforcement of brand attributes.
Communicate through Colour

When consumers see the colours red, blue, or yellow, how do they react? Do they feel happy? Do they feel sad? Do they feel at peace? Do they feel angry? Does it create any impact at all? Yes. Colour can be an enormously powerful means of altering a mood (Sean Adams, smartcompany.com.au). The difference in effect between red and blue, between green and yellow, between black and white, is immense from brand identity creation point of view. Brands need to stand out from their competition. They need to be easily recognized. They need to create the right mood in the hearts and minds of their consumers. In a recent high profile court case, Cadbury attempted to stop competitor Darrell Lea from using the colour purple for the packaging of its products. Cadbury claimed that consumers associated their products with the colour purple and that Darrell Lea was therefore engaging in "misleading and deceptive conduct" in using a similar colour. Consumer reacts to certain colours depending on culture, religion, upbringing, and/or personality. Colour is vitally important when doing business and is the first visual impression and most instantaneous method of communication for conveying your marketing message and meaning. It helps in distinguishing a business from competitors and is an integral part of the brand identification process. Colour symbolizes abstract concepts and thoughts, expresses fantasy and wishes, recalls brand identity, triggers 4
Perspective
brand association, and produces emotional or visual responses. Colour as a primary aesthetic tool generates a sense of visual harmony which sustains and enhances customer's interest. Colour is a key element in communicating, enticing, and attracting people towards a brand. Often called the "silent salesperson," colour attracts your customer's eye, conveys the message of what your product/service is all about, creates brand identity, and, most importantly, helps you make a sale (Neil Zhu, theforumgroup.com, 2009).
Emotional impact of Colour

Colour is everywhere, from the green grass to the blue sky to the black night. Colour affects and influences us both emotionally and psychologically on all levels, whether it is personal or business. Certain colours have the ability to raise our blood pressure, cause our breathing to become rapid, increase our pulse rate, adrenaline, and Galvanic Skin Response (GSR). Beyond our control, transmitted to the brain is a chemical message that releases the hormone epinephrine that causes these physiological responses (carnrightdesign.com). In business, smart entrepreneurs use this uncontrollable response to their advantage by studying the emotional impact specific colours have on the buying market. Colour influences every level, from the brand logo, image, signage, display, print materials, and the product itself. According to Leatrice Eiseman, director of the Eiseman Center for Color Information and Training, executive director of the Carlstadt, NJbased Pantone Color Institute, 60 to 70 percent of the buying decision is made at the point of purchase. With so many products vying for the consumer's money and attention, the effective use of colour is one way to capture their attention. Consumers are in an emotional mode when they shop. And when they are in an emotional mode, they are more visually attuned." With that in mind, every successful brand explored the emotional impact different colours have on the buying market.
new colour is one of the easiest and most powerful ways to communicate that something has changed, says Allen P. Adamson, managing director of Landor Associates, a brand consultancy. It signals the consumer to look at you with fresh eyes. And, notes Al Ries, chairman of the branding consultancy Ries & Ries, a brand can be that much more memorable when associated with a specific colour that projects its own psychological and emotional stimulus. Adamson, the author of Brand Simple (Palgrave Macmillan, 2006), says its important that the entire company be on board with the choice of colour. Colours should not be tied to any particular industry (though some may be better suited for some services/products than others). Some brands like eBay choose to go with many colours to represent variety but one can also choose a couple of colours that work well together as brand demands. Most importantly, Consider differences in cultural interpretations of your colour. For example in the Western world, white is considered the colour of purity and peace, however, in some parts of Asia white is the colour of death. Designers should use colour to formulate special and unique brand identity strategies. By choosing a colour or a combination of colours for a brand identity, it will basically evoke certain emotions and feelings towards the brand.
Colour Nothing but a Language

Colour is considered as universal language: Colour is considered as a universal language that crosses cultural boundaries as well as boundaries of our electronic/technical/satellite linked "Global Village." Colour helps to persuade and induce the customer to respond in a positive way to your marketing message. A brand can convey message properly to target segment through Brand Name, Logo, Packaging, Advertisements, Company website & office, even in Product itself. Colour selection for a business or a brand should be targeted for proper demographic (www.carnrightdesign.com). Colour selection should not be biased by own colour preferences, it should have a particular marketing message in mind also. It will be wiser to consider the psychology of colour when designing your marketing materials as colours not only enhances the impact of appearance of the item, also influences purchase behaviour (Lifen Yeh, Eric Min-Yang Wang, National Tsing Hua University, Hsinchu, Taiwan, 5
Selection of Colour
Strategic colouring of a brand can revitalize and reinforce the brand image. Because consumers often take buying decisions on first impressions through the colour that your business that communicates to the public what your enterprise stands for straight way. A
Perspective
2007). Most of the fast food restaurants are decorated with vivid reds and oranges. Studies said that reds and oranges encourage diners to eat quickly and leave. Many of the adult sites are having lot of reds and blacks as these colours are supposed to have sexual connotations (brandingstrategyinsider.com). Color is not at all a universal language: Color is a kind of language which is encoded and interpreted differently across the world based on sex, age, geography, culture etc. If a brand is planning to introduce a color to its logo and is dealing on a global level, may have disastrous results if the afore-said factors are not taken into consideration. What color works in one country or industry or brand may not work in another. Personal preferences usually cause brand disasters. It is necessary to look at the symbolism of any color scheme. Take purple for example: it symbolizes spirituality, mysticism, magic, faith, the unconscious, dignity, mystery, creativity, awareness, inspiration, passion, imagination, sensitivity, aristocracy & royalty, conceit, pomposity, cruelty, mourning and death. It is also the hardest color for the eye to discriminate. Consequently, purple is not a good color choice for the food industry but is an excellent choice for astrology, magic or spiritual businesses (carnrightdesign.com). Few aspects of evaluation of colors are described below: Cultural Aspect: - For example, white is the color of death in China, purple represents same in Brazil and Black in Germany. Yellow is sacred to the Chinese, but is sign of sadness in Greece and jealousy in France. In North America, green is associated with jealousy while green stands for holiness in Arab and in Malaysia, it is treated as the color of danger. Red is the color of strength in Scandinavia, color of love in USA but color of death in Africa. Age Differences: - Generally Children prefer brighter colors, while adults prefer more subdued colors. Class Differences: - As per marketing research in USA, working class people prefer colors blue, red, green, etc. While more highly educated classes goes for colors that are more obscure: like taupe, azure, mauve, etc. (Tom Altstiel, Advertising
Strategy: Creative Tactics from the Outside/In, 2005) Education Differences: - The more educated, the more sophisticated the taste, including color subtle color mixes, deeper tones, more elegant tints, more interesting color palettes where as less educated tend toward simpler, more straight forward colors (interiordesign.net). Climate Difference: - People who live in warm climates prefer bright, strong colors, people who live in colder climates prefer cooler, more washed out colors (interiordesign.net). Gender Differences: - Generally men prefer cooler colors (blues and greens) while women tend to prefer warmer colors (reds and oranges) Trends: - Colors preference is sometimes depend on simply popularity. Colors tend towards seasonality and designs reflect the season they were built in: winter blacks, whites, and greys; spring greens and bright colors; summer yellows; (omiru.com)
Colour influences
Research conducted by the secretariat of the Seoul International Color Expo 2004 documented that 92.6 percent sample said that they give importance on visual factors when purchasing products and 84.7 percent of the total respondents think that colour is the most important factor for choosing products. Research reveals people make a subconscious judgment of product within 90 seconds of initial viewing and that between 62% and 90% of that assessment is based on colour alone (CCICOLOR - Institute for Color Research). Colour increases brand recognition by up to 80 percent (University of Loyola, Maryland study). Psychologists have documented that "living colour" does more than appeal to the senses. It also boosts memory for scenes in the natural world. Thus colour can be used as effective brand-recall weapon. (Source: The findings were reported in the May 2002 issue of the Journal of Experimental Psychology: Learning, Memory and Cognition, published by the American Psychological Association). Colour ads are read up to 42% more often than the same ads in black and white (White, Jan V., Color for Impact, Strathmoor Press, April, 1997). Colour can improve readership by 40 percent, learning from 55 6
Perspective
to 78 percent, and comprehension by 73 percent. ("Business Papers in Color. Just a Shade Better", Embry,
David, "The Persuasive Properties of Color", Marketing Communications, Johnson, Virginia, "The Power of Color", Successful Meetings). RECOMMENDED FOR
Business related websites Finance related websites Entertainment and leisure related websites Anything aggressive, energetic & speedy Attention grabbing Products for women Kids wear, medicine Romantic mood Expensive products Health related, prestigious Photography, e-shop
GROUP Cool
COLOR
Blue Green
ASSOCIATIONS
Secure and trustworthy Wealth (deep) Calming (light)
NATURE OF ASSOCIATIONS
Sky (therefore universally liked) Money-the color of success Trees, spring Energetic (e.g. Coca Cola) Sun Feminine color Citrus fruit Royal, Romantic Absence of color Auspicious, Pure Colorful
EXAMPLE
Warm
Red Yellow Pink Orange Purple
Attention grabbing Optimism Energy, cheerful Cheerful Purple Powerful Simplicity-purity Dynamic, agile
Neutral
Black White Multi
Table: Color perception, association and recommendation (adapted from www.seosmarty.com)
Case Studies
The color red and the name Virgin are well linked in the minds of customers across the globe. Virgin did lot of R&D to ensure that exactly the proper red appears on their publicity materials, trains, cola cans and company vans. it helped consumers instantly identify a Virgin company or a Virgin product. Virgin finds this important enough that the company produces an eighteen-page guide to ensure Virgin Red links all the companys activities. The name NIVEA itself derived from the Latin terms "nivis" and "snow." Similarly, to maintain a look of freshness and cleanliness, the designers used the color blue. When the blue was introduced in 1925 this was also a socially acceptable color as it had no links to political i In 1915, when the Shell Company of California built their first service stations, they choose bright colors as it would not offend the Californians because of strong Spanish connections. The Shell emblem - or Pecten remains one of the greatest brand symbols in the 21st Century. There's a predominance of black (sophistication) and silver (prestige) in Jaguar logo. Jaguar markets to people with high incomes who view themselves as sophisticated and look for a prestigious vehicle.
Vartalaap
INTERVIEW WITH DEVITA SARAF

CEO, VU TECHNOLOGIES and EXECUTIVE DIRECTOR, ZENITH COMPUTERS
Ms. Devita Saraf is the CEO of VU Technologies and the Executive Director of Zenith Computers. She is the pioneer in bringing the concept of luxury technology to India through VU Technologies. Voted as one of the ten young tycoons by The Week, Ms. Saraf writes for guest columns in the Wall Street Journal and The Economics Times.
you have to quietly slip your brand into the right places.
Vartalaap
Markathon: Zenith has largely focused on lower value products satisfying core benefits, whereas VU is aimed at the upper strata of the society. How do you see the integration of both these business models, as VU must have inherited some of ZENITH values? Devita Saraf: Innovation in products has to be done, no matter what strata you are selling to. Vu has inherited Zeniths aggressive and innovative core values, albeit reaching a newer market segment. Markathon: India being traditionally a price conscious market, what is the scope of luxury technology here? Devita Saraf: Indian consumers are being exposed to new products and concepts daily. The Indian buyer is as knowledgeable as any international buyer. This also makes him a more discerning buyer because he understands quality and is willing to pay for it. So the scope for luxury technology exists because Indian buyers now want the best. Markathon: With respect to high end electronic gadgets, Indian consumers generally prefer globally established brands. What is the marketing strategy of VU Technologies to overcome this? Devita Saraf: Even established brands have to work hard at winning over the Indian consumer. This is because we are an inward looking country, and we dont follow trends of other countries blindly. This is a good thing, because brands are forced to innovate separately for India. VU has always innovated for customers and that is why we have been able to win hearts and trust in such a short time. Markathon: Being a niche market, the luxury segment is dependent on word of mouth promotion. In this context how do you create brand awareness without mass marketing? Devita Saraf: We do a lot of BTL activities throughout the year. For example, we partner with Oberoi Hotels for their events. We associate with other brands that are luxury and also try and do co-branding and events. We also have our own events and exhibitions for Vu Owners Club members. During festive season, when sales are high, we do ATL activities such as newspaper ads, outdoor campaigns,
special offers etc. In marketing, you have to keep attempting a mix of marketing programs because luxury brands are subtle and loud advertising will have a bad effect. So you have to quietly slip your brand into the right places. We also do high-end ads in magazines such as Vogue, but we havent calculated the RoMI there yet. A lot of experimentation is always on at VU. Markathon: VU Technologies have a presence across major social networking sites. What role do social media play in the exclusive segment that you cater to? Devita Saraf: Social media is important because of two reasons: 1. 2. Consumers spend a lot of time online and reach amongst a younger segment is very high Social media marketing is a mix between PR and advertising and you can build a good base of current and potential customers by educating them on your brand.
Markathon: With its high focus on innovation, how does the California based VU Technologies design for the Indian consumers? Devita Saraf: Innovation is at the core of everything we do. We dont really look at competition for inspiration, but we interact regularly with customers for feedback. For example, in USA people watch home videos in a dark room with a loud surround sound. In India, we like to watch TV in bright sunlit rooms in the day with the tube lights on! So the TV has to be sharp enough in this lighting environment. At VU we keep these insights in mind and create products accordingly. Markathon: Being among the young business tycoons of India, who are ready to inherit and give new dimensions to their family businesses, what is your vision for the company as well as expectation from the management circle in achieving the same? Devita Saraf: Young Indians have a chance to play on the global playground, which our seniors did not. We have to play by the rules of global competition and win. But the challenge is to win in our unique way. What this unique way is, I dont know yet. Its a learning process. 9
SPECIAL ARTICLE
Trends in
GLOBAL MARKETING
By Dipak C. Jain
DEAN EMERITUS KELLOGG SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY
Insights and agility are the keys for marketers as rules shift, forcing leaders to anticipate changes and embrace ambiguity while adapting to new circumstances in a world with fewer real boundaries.
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Conventional marketing wisdom says that companies must remain close to their customers to thrive. Such intimacy, which is a departure from earlier make-andsell models, invites consumers to help refine offerings, sometimes even as co-creators. Today, in competitive, technology-driven markets where customers are scarce, classic marketing models no longer function as well, as they once did. As a result, marketers must employ an integrated, holistic, sense-and-respond approach to achieve success, in partnership with their customers and leveraging the power of modern distribution and communication channels, most notably the Internet. With proper cultivation, these relationships can spark breakthroughs, and customer engagement will remain crucial for firms in the years ahead. New scientific tools promise to shed more light on biological factors underlying motivation and behavior, offering marketers additional resources. Meanwhile, advances in digital technology continue to impact consumer engagement too, putting more power into marketers hands, and into the hands of their customers. Old patterns of information asymmetry give rise to more level platforms where all parties have access to data. The importance of engaging customers through channels like podcasts, Webcasts, blogs, viral marketing and other forms of social networking is difficult to overstate. Marketers must make smart use of these resources to communicate their brand and value proposition to the right audiences. These tools allow for better, costeffective reach into markets, including niche ones, and let marketers deepen their relationships in those segments. But these tools are a two-way street, with consumers also able to gather and disseminate information quickly about a brand, and they are prepared to share their impressions with anyone who is interested. So unless marketers are wise enough in to understand how they use these resources, technology alone is insufficient for success. Using technology to listen and gain insights that help you genuinely help your customers is the key to success. True customer engagement means anticipating needs and working with consumers to solve their problems. Given the power of social networking, its essential that marketers develop relationships that will have customers talking (positively) about the brand. This word-of-mouth amplifies the brand message, but it is a relationship that
requires constant attention and enough mouths to work. Like technology, globalization is a powerful force that must be understood. While these forces have acted to remove many barriers and unite people, globalization has not obliterated all differences. It is still strategically important that marketers understand regional and national variations. In particular, marketers must appreciate the differences in laws, language, business objectives and supply systems that may confront them depending on where they are in the world. In nations as vast and complex as India or China, for example, it would be a mistake to assume that marketers can simply impose a standard Western marketing model. At the same time, it would be an error to assume that there is no similarity between these countries and the U.S. or Western Europe. The truth is more complicated, and marketers must respect and respond to the opportunities and challenges presented by global markets.
True customer engagement means

anticipating needs and working with consumers to solve their problems.
That said, most of us generally are trained to look for differences. I believe that we should spend more time seeking the common traits that unite us. We may then benefit from shared cultural wisdom, such as that offered by India and its traditions. Ancient knowledge may have much to offer the Western world; in particular, notions of compassion, morality, humility and moderation found in Buddhism, Jainism and other Eastern faiths may provide insights whose value enhances both personal and professional life. For marketers, global competition in a world marked by complex geopolitical and cultural forces is pushing them to think outside their comfort zones as they identify and evaluate new market opportunities. Doing so requires that these practitioners possess several additional skills, including: 1. The ability to anticipate change 2. The courage to manage ambiguity 11
3. Willingness to adapt to new circumstances to capture value These talents are central to what we may call the new economy that is built largely on managing information and information industries, where firms with the best knowledge are more likely to win, since they will be able to sense and respond to market needs sooner than their peers. As a result, they will have the chance to produce more original, technically superior products that meet customer demand and do so profitably. With better information, firms have the opportunity to create higher value through customization; whats more, technology is letting marketers achieve this level of personalization faster than ever before. While the old economy model, built around the idea of managing industries, has not disappeared particularly in many parts of Asia, where manufacturing remains a very important part of the economy marketers often will find themselves employing aspects of both older and newer models to keep up with rapidly changing commercial environments.
will come to bear within a broader framework of product innovation, process innovation and business model innovation. Each element is integral for success, but marketings real future will require new ways to think about business models. Corporate leaders must be able to think obliquely to determine potential threats and opportunities, and then take strategic action. For example, early in my tenure as a director on an airlines board, I posed these questions: Who is our true competition? Who could ultimately displace our company? Yes, other airlines posed a direct immediate threat, and it was important to understand and respond to such competition. Yet, looking ahead it was clear to me that an entirely different threat existed too: video conferencing. After all, this technology, as it matured, could result in significant cutbacks on business travel, even while the conferencing helped strengthen customer intimacy. A visionary airline could buy a teleconferencing company and leverage the acquisition, including by turning their airport red carpet lounges from cost centers to revenue centers by providing premium clients with a convenient way to enhance productivity.
In
the next few decades, developing nations will play a larger role in bringing fresh thinking on many social problems.
But to gain such insights also requires devising the right metrics to assess the impact of any marketing efforts. Whether focusing on measures like brand awareness, churn, net present value, customer lifetime value or wordof-mouth social media reach, it is important for marketers both to justify their expenditures and demonstrate how the marketing spend is impacting organizational success. While one might be expected to assume that all professional marketers use these kinds of measures, recent research by my colleague, Mark Jeffery, indicates that the vast majority (more than 80 percent) of organizations never adequately track or monitor marketing campaigns using data-driven marketing tools. In addition, some 55 percent of marketing managers reported that their staffs do not understand key metrics. These startling figures suggest that too many marketers are not fully utilizing the analytical tools to produce the information that can help them compete in a challenging global environment. The ability to sense and respond to change and ambiguity
Such innovation comes from dramatically rethinking ones core business, just as Google Inc. did when it redefined its value proposition. Other search companies existed before Google, but while those firms regarded their customers as being people conducting a search, Google saw the potential for a business oriented around those being searched. One could cite similar innovations behind the success of Reliance and Wipro and many others. Marketers looking to change the rules of the game will also find ways to harness the power of diversity. Innovation comes from people, and in global business we can expect the best ideas, regardless of geography, to rise to the top. In the next few decades, developing nations will play a larger role in bringing fresh thinking on many social problems. This is why marketings future also must adopt a truly global perspective while devising a new way of measuring value that extends beyond business. By this I mean embracing endeavors like social entrepreneurship those ventures making a difference in various ways, from eradicating hunger, disease and pollution to providing better education. In so doing, marketing secures its future by building on conventional success in the cultivation of a broader mission of social significance that unites the community. work. 12
Eye to Eye
OFFLINE BRANDING VS. ONLINE Branding : What makes marketing successful?

Offline brand personality: clearer and more personal.
In the recent past, several business transformations have had the internet playing a pivotal role. Companies are now trying to focus on the internet as their prime medium of brand communication Manish Shukla and Offline Branding seems to be all IIM Khozikode but redundant. But there is more to Offline Branding than the carpet bombing type of promotion we usually come across on mass media. Concepts like In-store branding, Shopper marketing, Merchandise branding, Buzz-marketing, Tollfree help lines and even consumer follow up for CRM are all essentially Offline branding activities. Offline branding provides the direct as well as the indirect halo effect which is missing in online branding. The perceived risk for customers with the in case of online branding is high too. Though there is better fit for offline brands like cosmetics and offline branding compared to online brands like social networking and online branding, how many of us trust the socialnetworking sites with our personal details? Most importantly, the physical and emotional attachment with the consumers is missing in Online Branding. Who would like to interact with a Disney character online when he can shake hands with it personally? It is the brand personality which differentiates the company from its competitors and helps in building brand loyalty. Instead of jumping onto the online bandwagon, the marketer must first see whether the target consumer has a footprint on the internet; for e.g., India with 7% internet penetration does not justify going for Online Branding alone. A vague virtual branding exercise makes it difficult for the brand to be differentiated from its competitors. Most web practices look similar and confuse for the target consumer. Looking at the bigger picture, offline brand personality is always better, clearer and more personal than online. Branding can be defined as an exercise to communicate to your target audience what your brand is all about; to make them chose you over the competition. This has usually Tushar Jain been through traditional NMIMS channels like television, radio, print and billboards. No doubt these methods do help in creating brand awareness; we simply cant underestimate the influence of internet in todays world. One of the key benefits of online branding is that its completely measurable, unlike offline branding. Using state-of-the-art techniques and software programs, we can virtually track everything: right from visitors demographics, their click-through ratios, their conversion ratios to the search phrases used by them. This in turn helps in measuring efficiency of the program by measuring conversions, which further augments in effective and focused branding exercises. Moreover given the spread of internet, everyone has an online presence. Remember that in the digital world, you are not the only keeper of your brand. There are people who write about it & may impact it in a big way. Hence, online branding becomes more important in mitigating any negative emotions which might have crept in the target audience. As the reach of internet spreads, consumers become more interactive. Now we dont wait for the information to flow to us; we are going out and searching for it in the digital space. Unlike offline branding, online branding serves this target segment with focused branding programs based on specific searches and keywords. At the end of the day, given the advent of internet in our lives and yearn for information, online branding is a handy and cost effective method to run focused yet successful marketing campaigns.
Online branding is completely measurable.

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Topic for the next issues Eye to Eye is Can effective marketing change the fortune of hockey In India? Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 15th November.
Cover Story
The Imperative of
Sustainable Marketing
Dr. Sanjeeb Kakoty
The struggle to save the global environment is in one way much more difficult than the struggle to vanquish Hitler, for this time the war is with ourselves. We are the enemy, just as we have only ourselves as allies.~ Al Gore Majority of the corporate world is still in the dark about the actual practicality of sustainable business. This article questions the very rationale of development and delves into the world of sustainable business practices with the help of case studies of actual corporations that are changing the way businesses around the world operate.
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Cover Story
Whenever I think of the concept of sustainability in marketing, my mind wanders back to a train journey I had undertaken as a young undergraduate. As I sat down and the train began to pull out of the station, an elderly dhoti clad person, sitting next to me picked up a conversation. He came to Shillong as a thirteen year old. He painted for me the picture of Shillong in 1945, with vivid and vibrant strokes of color. His first job was a salary of Rs 8/- a month. He kept on narrating how hard he worked to accumulate his first hundred rupees that became the seed capital to start his own business and also about the achievement of becoming the proud owner of five shops and figuring among the top businessmen of Shillong at the age of 82. Within a space of a train journey he had given me his entire life story and as we neared Guwahati, he suddenly became quiet and thoughtful. Suddenly, he started talking again. He said Beta, those days are gone. Talking of profit margins he said In my days the philosophy was to eat little so that there will be enough to eat everyday! But now days, the idea seems to be to eat as much as you can today and forget about tomorrow! He proudly spoke of his Spartan lifestyle. He spoke of his hurt when he sees the new generation squandering away the gains made by decades of toil and sweat. He concluded that the end was near! Fast forward to 2009, I find myself teaching sustainability at IIM Shillong. I talk of concepts in sustainable development, of strategic planning, of supply chain management, of integrated marketing communication. But in the end everything boils down to the question: Is it sustainable? I am brought back to the basic argument put forward by my copassenger on that train, decades ago. That business is not merely about maximizing profits, but ensuring that those profits keep coming in for all times. Was the old man, who had not even attended high school, suggesting sustainable marketing? The innate logic of his words taunts me. Is it not ironic that a man, who had not passed high school, had practiced what the most educated find hard to accept? That sustainability is no longer an option but the only way forward. That CSR is no longer Corporate Social Responsibility but Corporate Sustainable Responsibility! That the concept of Triple Bottom Line is not a quirk in accounting, but a fundamental tool to
ensure sustainable business. That growth rates and GDPs are not interchangeable with the term development. Incredibly, in the current scheme of things, if one walks instead of using the vehicle, or decides to open a window instead of turning on the air conditioner, his contribution to the GDP is zero! This makes it apparent that development cannot be measured only in terms of growth rates but one has to include parameters of human development as well as the human happiness index. One might argue that the business of business is business. Hence, the purpose of a B school is to teach and train people to become successful business leaders. Their concern should be about bottom lines and balance sheets. Period! But what about the contention that the sustainability of business is sustainability! If this is acceptable, then businesses cannot rest content by keeping an eye on the quarterly returns alone. Long term sustainability has to be factored in too. While doing so, it may be pertinent to keep in mind that sustainability is not merely going green. It is more about realizing the fact that resources of the world are finite and scarce, and best business practice demands that these resources be used judiciously and in a manner that allows its regeneration through the natural process. But this is easier said than done. Ever since the Industrial Revolution, mankind has embarked on a journey that sought to CONQUER NATURE. By this, everything that mother nature offered , be it plants or animals, minerals or water, mountains or seas, all was sought to be subjugated, used, exploited and controlled for the use of man. This philosophy of the conquest of nature provided the justification for the mans eternal quest to maximize the exploitation of nature. That this philosophy stood in sharp contrast to the ancient wisdom of the orient, that man is a part of nature and that mankind has no option but to live in harmony with the natural world, did not seem to bother anyone. But come the 21st century, mankind is faced with an unprecedented predicament. Human population is at an all time high. Food productions have largely stagnated. The gap between the affluent and the poor have never been so wider. The prevailing political system seems both unwilling and unable to 15
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addresses these issues head on. This has created seething anger and frustration among the deprived millions. Perhaps the only way out is to redefine the concept of development and ensure inclusive growth. This would entail a paradigm shift in our orientation. And for this business has to lead the way. But here, it should be kept in mind that the leadership expected of business is not based on an appeal to their sense of philanthropy, but merely a call to the performance of duty enjoined by their position. Such companies have the resources, the administrative apparatus and the
Walmarts Sustainability Index: The Game Changer? -Varshik Nimmagadda
Sustainability has become one of the hottest buzzwords in the corporate world today but doubts still persisted over the commitment of the business world to adopt something that was perceived to cost more in the short term. But all that is set to change now with the biggest corporation of them all making an emphatic statement toward sustainability. Walmart has launched the sustainability index which it expects will define its commitment toward becoming a greener organization. The impact of this initiative can be gauged from the fact that Walmart has sales of more than $400 billion and more than a hundred thousand organizations supply to it. The potential greening effect resulting from this decision will be enormous. The Walmart sustainability index is, as the company puts it, a step toward becoming a greener organization by creating a more transparent supply chain, driving product innovation and ultimately providing their customers with information they need to assess products sustainability. The index will be introduced in an iterative process and composes of three steps. The first one, supplier assessment, aims at assessing the sustainability of the major suppliers of Walmart in four broad areas, i.e. energy and climate; material efficiency; natural resources; and people and community. Walmart is not grading the companies per se but it hopes to achieve transparency in the system and believes that the market will force the suppliers to change. The second step is Lifecycle Analysis Database in which a consortium of universities will collaborate with suppliers, retailers, non-governmental organizations and government officials to help organizations to analyze the impact that their product has on the environment. The entire effect of the product from the raw material to the wastage and disposal will be covered in this phase and the products will be rated based on their carbon footprint. The third 16
required leadership to lead this change. What is required is the will and the mindset. And the time for this is now. This represents a historic opportunity for businesses. If Brands= product + image, imagine the brand leadership a company would enjoy once it builds around itself the image of sustainability. Setting aside funds for R&D to come up with cutting edge technology that would make companies inherently eco friendly is both possible and profitable. Renewable energy sources are viable options. Bio mimicry could provide solutions to most human problems. Resources can be used in a sustainable manner. Alternative and non wasteful lifestyles can be made into fashion statements. For achieving this,
the onus would lie on the business leaders of the world. Whether it will rise to the occasion could well determine the difference between survival and annihilation. Not just of their companies but of mankind itself.
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and most important phase is to provide the customers with a simple way to access and use this information. A consumer application will be developed to do this. An important factor in the development of this index is that although it was started by Walmart, it will be headed by independent organization with no vested interest in the outcome. The threat of Walmart cutting of suppliers who did not meet its criteria would also act as a powerful factor in forcing the supplier to look at alternative sustainable products and greening their value chains. This would play a major role in raising the power of this index. It has also invited other retailers into the process to facilitate wider acceptance and increase transparency in the process. However there are some major caveats to the process. The entire business model of Walmart depends on competing on price and this in turn has forced its suppliers to turn to low cost manufacturing in the developing countries. It remains to be seen whether the core customer of Walmart would actually pay more price for sustainable products or whether Walmart can successfully adapt its value chain to produce the goods at the same cost. Critics have also pointed out that the Walmart index is less exhaustive than some indexes that have already been formulated by other companies. For example Nikes Considered Index scheme is much more sophisticated formulation. But the approach being followed by Walmart is more of a ready fire approach in which the company starts off a sort of beta version of the product and use the inputs from the best minds in the country to continually improve on it. The consensus seems to be that however imperfect this index might be it represents an important step forward for sustainability and will be the game changer that finally contributes to tipping the debate on sustainability. But the ultimate verdict will be in the market place when customers of Walmart accept and embrace this newer and greener Walmart.
Patagonia - A business case for -Kaushik Subramanian
sustainable marketing
Working for the earth is not a way to get rich, it is a way to be rich Paul Hawken Corporates have realised that by conducting their business in harmony with nature, they become the actual beneficiaries. The benefits can be felt and seen by the companies across different functional domains, but one domain where it can reap maximum benefits from is marketing. This speciality has come to be known as sustainable marketing. Advocates of this concept state that conducting business in an environmentally and ethically responsible way creates a positive buzz about the brand image of the company and results in increased customer patronization.
About Patagonia
One such company which has been a pioneer in the field of sustainable marketing is Patagonia Shop & Clothing Gear, U.S.A. The mission statement of Patagonia reads thus Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
Initiatives
Patagonia has kick-started a number of environment friendly programs to promote the cause of a greener and cleaner world. One of their numerous programs include the Common Threads Garment Recycling Program, whereby customers can return used/worn out Capelin Performance Baselayers, fleece clothing, cotton t- shirts, certain polyester products etc, which after recycling is used in the manufacture of new clothing. How does this process work? Once customers return worn out clothing to Patagonia, its sent to their centre 17
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in Japan, where through the fibre- to- fibre recycling process, new polyester is made. Scientific research has proved that making polyester from recycled material has significantly lesser detrimental effect on the environment than when made out of virgin materials derived from petroleum. Also diverting used materials from landfills reduces solid waste. Similarly diverting them from incinerators results in an energy savings of 76% and CO2 emissions are reduced by 71%. Another practice that Patagonia follows is the use of recycled paper, certified by the FSC Forest Stewardship Council, for their catalogues. Its printed on paper made with 40% post consumer recycled content and the cover is printed on 50% postconsumer recycled content and made with wind power. By doing this they help in conserving energy, reduce wastewater equivalent, solid waste equivalent and greenhouse gases emissions. Other programs of Patagonia include, Footprint Chronicles, World Trout Initiative, 1% for the Planet, Conservacion Patagonica, Enviro Internship, Conservation Alliance and Organic Exchange.
positive impact on the business of Patagonia, since their target market is such, as mentioned above. In an interview to The Guardian, Mr. Rob Bondurant, VP of Marketing, says how Wal-Mart has approached them to learn and practice environment friendly business similar to that of Patagonia. These statements go on to highlight the fact that Patagonia is a highly successful company whose brand image as environment friendly, has not only garnered them newer customers by the day, but also won them the respect and admiration of giant peers such as WalMart. No further proof is required to substantiate the fact that working for the earth is the way to be rich.
Positive Impact on their Brand Image

Now how do these initiatives contribute to the success story of Patagonia? The products of Patagonia are targeted at those individuals who are adventure sports enthusiasts, nature lovers and those who are concerned about the conservation of planet earth. In line with their target market, products of Patagonia are nature friendly as mentioned in the preceding segments. Also since Patagonia contributes 1% of their annual turnover to save the planet, customers are inspired to buy Patagonia products and feel good about themselves as they are contributing to a noble cause. As a result of this their recent sales figure stands at around $240 million. In addition to this Patagonia has a highly accredited website which attracts 25,000 hits daily and is a major sales driver. This website gives in detail description of the various sustainable initiatives of Patagonia and evokes interest among the visitors. These environment friendly manufacturing processes, nature friendly products and sustainable initiatives have a tremendous
BMW: Efficient Dynamics
Charles Darwin said Its not the strongest species that survive, nor the most intelligent, but the ones most responsive to change What is this change? When will it come? How should we respond to it? These are the questions that a company should be ready to answer. 18
-Pranab Talukdar
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BMW was one of the first Automobile Companies to realize the importance of this change. The change that has become the Buzz word of today i.e. Sustainability, BMW realized it way back during mid 1990s. Those days, globalization was becoming more evident, BMW was about to launch its first SUV X5 series and Mercedes Benz was giving a fierce competition. Initially, during mid 1990s, BMW started developing fuel saving and alternate vehicle concepts through clean production processes. From here on started the initiative which is now known as the BMWs The Efficient Dynamics Concept. Launched as a standard technology fitted into the entire model range, 1.3 million cars with Efficient Dynamics features are already on the road around the world. Between 1995 and the end of 2008 the BMW Group cut fuel consumption of its vehicles sold in Europe by more than 25 percent. On statistic average, a BMW or a MINI brand (owned by BMW) vehicle burns significantly less fuel than the average new car produced in Germany. In emission front, BMW cars have CO2 emission level of 158 g CO2/km which is 18 grams lesser than the next best competitor. On the whole, BMW is better prepared to face the more stringent environmental regulations planned for 2012 and 2015. BMW Groups management board declared sustainability as one of the companys core strategic principles in 2000 .The BMW Group is the only company in the automobile industry to have been listed in Dow Jones Sustainability Indexes (DJSI) every year since this index was established in 1999. In 2009, for the fifth consecutive year, DJSI rated the BMW Group as the leader in its industry, making it the worlds most sustainable automobile manufacturer. Corporate Sustainability is firmly entrenched throughout its entire value chain - from the development of fuel-saving and alternative vehicle concepts through clean production processes to green recycling practices. From the marketing point of view, the following is the impact BMW has created on the 5 Ps of marketing:
MINI. This gives a cleaner image to the already strong Brand of BMW.
Place
BMW is going to new markets like that of India, Malaysia etc. The green tag helps it to get a better image association in these new markets.
Promotion
The official site of BMW has the Efficient Dynamics as its theme. It wants people to know about its sustainable practices. Its advertisement also it has the green touch. One of its ads shows BMW thanking the nature: The Soil, The Breeze; The Water. Its Efficient Dynamics is one of the central themes of the Geneva car show for quite some time now.
Price
BMW brand is traditionally very highly priced. It targets the premium segment and this segment is ready to pay extra for getting something closer to nature. Though, BMW has been clever in its communication to its customer. It has always been focused on Saving Green rather than Spending Green People One of Mckinseys researches says that 55 percent of the consumer feel that environmental issues are important and should be addressed by corporate executives. The target group of BMW loves driving fun and sporty, yet elegantly designed cars. They have high interest in outdoor activities. BMW is targeting their emotions with the Green image but also keeping its Sexy image intact with its performance. Future Outlook BMW is giving focus to its strategic principle of sustainability. It wants to redefine the boundaries of emission and efficiency. They are coming out with something called the Thermal Dynamic Generator which is based on space technology. It basically takes heat from the engine and transforms that into energy which can be used. Thus, when one is pressing the gas, he/she is actually saving energy because heat energy is generated back into the car.
Product
By far the most efficient premium-class vehicles on the German automobile market are built by BMW and
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Pandoras Box
SENSORY MARKETING: Marketing through senses!!

Vaibhav Rajput | MIB-Delhi School of Economics
Sensory marketing aims at creating an experience and forcing yourself to excogitate the experience resulted out of the product usage by catering to the five senses. According to Schmitt, brand experience comprises of: Product experience Look and feel Experiential communications 3) The Olfactory 4) The Gustative 5) The Tactile The above strategies have been substantiated with examples from overseas market as well India. Visual Marketing The simplest and the most common form of marketing is Visual. Whether it is billboards or television, all that we see is visual but the point to emphasize here is of looking at something different which creates an impression and stays there in the mind of the customers. For example, the Filmfare magazine had John Abraham and Bipasha Basu on its cover page. Amul has always created innovative print ads so as to catch the eyeballs of the customer. Logo, signage, packaging, the retailing store design, merchandising and website graphics are used to titillate customers senses. Auditory Marketing The auditory marketing focuses on creating a special sound, music etc. which touches heart of the customer and also to enables him/her to imagine the attributes of the product. The two points are substantiated with the following Indian products/services employing the above strategy.
Hence, sensory marketing strategies can be devised under these heads. Product experience strategies highlight usage experience of products like snap, fragrances, color and consistency. Several product specific strategies can be employed to infuse necessary attributes. Look and feel can be enhanced by creative design of logos, packaging, store ambience etc. In-store audio/videos, feelie packs, store architecture are among numerous strategies. Experiential communications should highlight Experiential selling point through video/audio, captions, celebrities, color scheme. The key is to establish a unifying theme consistent with product positioning and pervading all the individual strategies. The five methods or strategies which are a part of the sensory marketing are: 1) The Visual 2) The Auditory
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Pandoras Box
a) The Airtel music: AR Rahman has actually been showed creating the same in an Airtel Advertisement. b) The Kaun Banega Crorepati music which is played before the show starts and during break time. c) The recent advertisement of Sunfeast Snacky, featuring Sharukh Khan and Dia Mirza emphasizes on the sound of the crispness of 1 the biscuit. d) Scharffen Berger, Americas finest dark chocolate makers cater to chocolate connoisseurs and experts through extensive care in production process and multiple tests to check the snap (the sound when chocolate is broken or a piece is taken) of the chocolate. They are able to position their chocolate as Americas finest and extract price premium because of such subtle attributes that consumers appreciate. Olfactory Marketing Its marketing through smell. It reminds you of the school time when the new notebooks and copies spread its fragrance all over the room. The concept is new and being used by the marketers at large, so as to leave an impression in the minds of the customers. The companies employing this strategy are: a) Aroma can be attributed to, and differentiates different foods. HUL aggressively communicates the special aroma of its Bru coffee brand. Coffee lovers associate high quality and purity (made from pure coffee beans) with nice aroma. Another relevant example is Arrey Hajoorwaah TAJ boliye
from the Taj Mahal Tea advertisement. b) For quality-wise identical skin-care products, fragrance can be a great differentiator. Olfactory aspects of powders, sunscreen, fairness creams, moisturizing creams and body lotions, especially in case of extract theme products (like strawberry silk crme) speak about product ingredients and quality. However, the smell should not be too strong or repulsive to the consumer. Gustative Marketing Marketing through taste: You might have heard about the wine tasting or tea tasting sessions. Most beverages use this strategy. In the advertisement of Taj Mahal Tea, Zakir Hussain first smells and then tastes the tea. Tactile Marketing: Marketing through touch: its all about the feeling which a person gets or about an experience which is derived from the touch of the product Packaging offers a wide scope for strategizing marketing around it. Texture of package can be tailored to reflect the feel of the product itself. Shape and size of the package can impact product usage experience besides improving the look and feel. Tiny, mobile containers of Vaseline for use on the move are different from large containers of body lotions which are ideal for storage and usage at home. At the end, its all about the time, technique, place that matters the most while employing this strategy.
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Productolysis
Maggi: A friend, A philosopher or a guide?

Shweta Jaiswal, Pooja Mandalia | NMIMS
In 1997, Nestle India launched a new improved formulation of its noodles brand. This was the first change that was introduced since the brands launch in 1980s. A major shock was in store for Nestle with the consumers rejecting the new formulation. The above situation is an excellent example which emphasizes the importance of consumer attitude, usage and belief about a product and how it determines a products success or failure in the market. Different consumers have different perceptions about Maggi. Most use maggi and noodles interchangeably. Over the years the association of Maggi noodles has moved from being functional to emotional. Hence, Maggi Noodles is not just a 2 minute noodle now but is Me & Meri Maggi concept, wherein consumers associate Maggi with some special moments of life. The core benefit which Maggi provides is its instant recipe and a tag line which assures that it is FAST TO COOK & GOOD TO EAT. The Basic product benefit which it promises the target market, is good taste and good health Taste Bhi Health Bhi. The Expected
product benefit is proper packaging to ensure customers a good quality, fully packed seasoning tastemaker at affordable price. But in case of the Augmented product benefit how does the product prove to be an emotional connect with the consumers: a friend or a philosopher or a guide? The beliefs associated with a brand constitute the brand image, and the customer may have uninformed beliefs which are likely to generate a negative image about the brand. The marketer must ensure that consumers have all relevant and correct information about the brand to facilitate formation of a positive brand image. Certain beliefs developed are neutral and are more dependent on the situation or circumstances of purchase or usage of the product. Maggi Noodles being an almost Cult brand in India with respect to noodles has a variety of beliefs associated with it. Beliefs associated with Maggi have largely been developed because of situations in which the consumer has used the product which again has been successfully portrayed in the Me & Meri Maggi Campaign.
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Productolysis
Consumers still remember the Bas 2 minute campaign so much so that Maggi has become synonymous with noodles. This is has been evident for well established brands like Cadburys and Colgate which were synonymous with Chocolate and Toothpaste respectively. Unlike Maggi, the above two brands have lost top of the mind share of consumers due to increasing competition from other brands. An attitude is a persons enduring favorable or unfavorable evaluation, emotional feeling and action tendencies toward some object or idea. Attitudes lead to the liking or disliking of a product and it is very difficult to change the attitudes of consumers. Thus it is advisable for companies to mould the product and its utility according to the attitude of the target group rather than developing new attitudes. For the very same reason, Maggi came out with the campaign of Taste Bhi Health Bhi in order to shift the attitude of consumers towards a positive direction. Increasingly consumers had become health conscious and were moving towards more nutritional options. To retain the same, it was extremely important to strengthen their positive attitude towards Maggi as a nutritional instant option to hunger pangs. If we talk about the kind of personality that Maggi evoked: there are two kinds of personality that are a marketers tool: the brands personality and the consumers personality. Going by the Freudian concept of personality whereby consumers act unconsciously towards a product, Maggi would be satisfying the basic need of hunger i.e. the id in the id, superego and ego concept. Maggi can be seen as a social tool; a hangout snack, a snack that people motivate others to use. Hence, Maggi is like a friend that everyone wants to hang out with, a friend that everyone wants to introduce to others. Maggi is identified with the always on the go, urban, aspiring, ambitious youth. Lets talk about the packaging of Maggi: the yellow
color brings out a feeling of warmth and belonging, red brings out exciting, strong and passionate and the new addition blue (to commemorate the 25th anniversary) indicates respect and authority for the brand. If Maggi were to be personified, what would he/she be? Maggi is no longer only a product. It is brand that has evolved and journeyed from the marketers mind to the consumers mind. Is Maggi is a sincere person with down to earth, honest and cheerful characteristics or is Maggi a competent person who is reliable, intelligent and successful? Whether Maggi is a friend, philosopher or guide can be answered with the responses that Nestle has received for their Me & Meri Maggi campaign. Consumers have Maggi when they are hungry, they have it when they are happy, they have it when they are tired and to add to it they even have it when they are sad! Maggi serves as a friend you turn to after a hard day at work, someone you turn to when you are in the mood to celebrate. There is an innocent yet naughty childlike appeal in Maggi that attracts you towards it. There have been consumers who turn to Maggi to bail them out too. For e.g.: consumers have cooked Maggi for a romantic meal when they didnt know what else to cook. Maggi is someone you look up to as a Western appeal but you believe he has Indian roots. Maggi identifies with consumers who aspire but not at the cost of their values. A philosopher may be/ may be not? Maggi is like the next door neighbor, who you are so habituated with, who you can comfortably flirt with, who can share your joys and sorrows with, which you turn to while youre in trouble. Maggi is your friend who shares your philosophies, who does not guide you like a mentor but approves all you want to do with your life. Maggi is and always will be a friend for its consumers: you and me!!!
Strategic Analysis
Park Avenue Brand Extension Strategies in Indian context

Altaf Fakhrul Mohammed, Thattey Chinmay Sudhir | IIM Ahmedabad Introduction
Park Avenue is one of the many brands offered by the Raymond Group. It provides stylish and innovative wardrobe solutions and is famous for its good fittings. The brand provides formal clothing for various occasions like regular office wear, high powered corporate meetings and festivals. Park Avenue started off as a mens wear brand. In 2007 Park Avenue Woman, a range of business wear for women was launched. It is designed for the working women professionals of today.
Analysis of the Brand Park Avenue

On the basis of discussion with consumers, analysis of ads, discussion with retailers and information gathered from the website, we have done the following analysis of the brand Target Audience: The brand targets young middle class corporates who are fashion conscious but need to wear formal clothes on a daily basis. The brand also has a secondary audience in the form of older men which is primarily due to the strong heritage that this brand has. Brand Personality: Park Avenue symbolizes a person (male) who likes to explore the unknown, do something different. He has an entrepreneurial spirit and wants to be a leader in everything he does. He is a person who wants to express himself and his style through his clothes. Key Brand Values: The key brand values are- Smart, innovative, different, exciting, premium, trusted. We also believe that the brand also stood for masculinity before venturing into female clothing.
Brand Proposition of the original product- Park Avenue Mens Wear

The rationale for using the name Park Avenue for Raymond Indias ready to wear mens clothing (premium segment) was to give a western name which was synchronous with great fabric and great fit. The brand has over the years undergone many changes as it tries to reach out to the urban young corporate consumer. While it started off as a brand that was fashionable and meant for slightly older customers who trusted the Raymond heritage, the brand repositioned itself later to tap the new managers, who wanted to be different, that emerged in the 90s. In 2000 the brand came up with the new positioning tagline- Start Something New. The brand launched a new print and television campaign in order to shed its old image and target the young entrepreneurs who were emerging in the booming IT era. It realized that these young consumers wanted to be different and break away from the traditional ways to start something new. The logic for this new positioning, along with which the company also came out with smarter designs, was the fact that though Park Avenue was seen as a premium brand, young consumers viewed it lower in status and less fashionable as compared to other brands like Arrow, Van Heusen and Allen Solly. The latest tagline that the brand has chosen is Play the lead whereby it is once again trying to target the young ambitious consumer who aspires to be a leader.
Brand Extensions
The brand has extended into: Accessories: Ties, belts, shoes, cufflinks Mens Toiletries: Soaps, deodorants, aftershave, shaving cream, talcum powder, gels
Analysis on the basis of Criteria for Brand Extensions

1. Fit The new category into which a brand extends should be in line with the nature of the parent brand and sometimes even the expertise it represents. Accessories: While extending into accessories, Park Avenue leveraged its expertise in clothing and the association that consumers make with looking good in a corporate/formal environment. Thus we believe that this is a natural extension for the brand to give consumers the full range of formal dressing-right from clothes to belts and shoes. 24
Strategic Analysis
Mens Toiletries: Mens toiletries are an extended part of a mans looks. We believe that there are products in this category which fit in line with the brand Park Avenue. By doing this, they have made an attempt to evolve into a brand that not only cares about your clothing, but rather a brand that stands for complete male grooming. Thus in this category the company is not leveraging its expertise (clothing) but rather is leveraging its image as a classy male grooming brand. 2. The value perception A successful brand extension has to ensure that there is consistency in the value perception of the brand in the new category as compared to in the original category Accessories: The accessories that Park Avenue sells are premium and elegant due to which they fit in with the values that the brand stands for. The description that we got for their accessories on their website was as follows: Shoes: Crafted from fine European leather and finished with a lustrous shine. Ties: Complete your ensemble with the perfect tie from Park Avenue. These exquisite woven and printed ties come in various designs. These silk ties give a new meaning to the term power dressing From these descriptions, it is clear that Park Avenue continues to maintain the premium, classy, new age, youthful image that it has built in clothing. Mens Toiletries: The deodorants and perfumes that they sell have a label which reads as follows-Genuine French Eau De Parfum with information on the pulse points which act as mini fragrance pumps. The French fragrance again adds uniqueness to the perfume which is in line with the brand values. The logic behind entering perfumes and deodorants was that research showed that there was no major perfume brand in the mens market. Also most international brands were too mild for Indian conditions. On talking to some consumers we felt that the key differentiating aspects for the Park Avenue soap were its good masculine fragrance and its large size, which again strengthens its masculine image. On analyzing the distribution strategy of Park Avenues toiletries, we saw that the companys distribution strategy is in line with its pricing strategy. Park Avenue soaps and deodorants are available at normal general
stores. Perfumes are available at supermarkets unlike big brands which are available only in shopping malls. This is because the perfumes, which are priced at around Rs. 450, need to be made available easily to the middle class consumer. We felt that the pricing strategy in toiletries was in line with the pricing in clothing which is to appeal to the middle class consumer. On the whole we felt that Park Avenues brand extensions maintained the original values of the parent brand.
3. The Edge The last criterion we used for analyzing the brand extensions was to see the competitive edge. A great brand in one category need not always offer a competitive difference over other brands in another category. It is necessary for the brand to offer consumers some advantage in order for them to adopt the product in the new category. We felt that the brands strong heritage and its ability to produce the best quality clothing helped it to easily extend into ties. However that is not the case for shoes and toiletries. Here the brand is leveraging on values of the parent brand like the premium and classy feeling that have been created over the years.
How are the extensions helping the brand?

It is interesting to see how these brand extensions have helped Park Avenue as a brand. To study this we will first have a look at how a brand pyramid gets built over the time period & then look how various extensions have strengthened the Park Avenue brand. 25
Strategic Analysis
Presence: Initially consumers become aware that such a brand exists. Its very important for a brand to have a solid base as it builds on this (i.e. only those who are aware of the brand are likely to consider it for further evaluation). Success of this stage primarily depends on effective communication & word of mouth (which in turn depends on performance, the third stage of this pyramid). Relevance: Out of those who are aware of the brand, some find its proposition relevant to their needs. This is the stage where a brand gets into the consideration set of prospective consumers. Performance: If the first two stages of the brand has invoked enough interest in the consumers mind then they experiment with the brand. Those who find its performance satisfactory at this stage put the brand into their repeat consideration set. Advantage: Those consumers who are satisfied at the 3rd stage of pyramid, start repeating the brand & their interaction with the brand starts. At this stage they start experiencing the extra advantages that the brand offers to them.
Bonding: Out of those who have found extra advantages about the brand, some interact very frequently & intensely with the brand & form an emotional bond with the brand. Now lets have a look at how various extensions have strengthened Park Avenue overall as a brand: Presence: As Park Avenue did advertisement (especially Print ads) of accessories & some toiletries (especially soap), it strengthened base (presence) of the Park Avenue brand. Relevance: By evolving as a complete grooming solution, they have increased their relevance to the consumer. Performance & Advantage: Here the brand values of Park Avenue which were transferred to extensions, boosted these two levels of the brand pyramid. Bonding: Consumers bonding with the brand increased as it gave them a complete grooming solution. So, we can infer that the extensions have led to strengthening of the brand pyramid (& hence have been successful).
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Competition
Silent Voice
LAST MONTHS RESULTS Theme: KingFisher: Fly with Style
WINNER: Manan | XLRI Congratulations!!! Manan receives a cash prize of Rs 500.
NEXT THEME FOR SILENT VOICE: Minute Maid Pulpy Orange LAST DATE OF SENDING THE PRINT AD: 15th November, 2009 EMAIL ID: markathon.iims@gmail.com
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Competition
HONORARY MENTION
SWAGAT KUMAR PANDA, NAVJOT SINGH BINDRA | FORE SCHOOL OF MANAGEMENT, NEW DELHI NITIN DIWAKER | DMS, IIT ROORKEE
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Competition
ANKUR MISHRA, ANKIT SAXENA | IMT GHAZIABAD
PHANINDRA MEDURI, SHIVANI RAWAT | IIFT, NEW DELHI
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Specials
BRAND LAUNCH
GM Cruze
General Motors, after the emergence from bankruptcy in June, launched its premium sedan Chevrolet Cruze at an introductory price of Rs 10.99-12.45 lacs (exshowroom, Delhi). The company expects to sell 8001,000 units of Cruze in the initial months, and give Honda Civic, Corolla Altis and Skoda Laura a run for their money.
Crompton Greaves in its new avatar

Crompton Greaves, Part of the $3-billion Avantha Group, has adopted a new logo sporting two equal forces, 'C' and 'G', which unite to create a harmonious 'CG' illustrating a stronger form and projecting the company as a global player. This is a part of the companys branding strategy to project its increasingly multinational character because of its acquisition drive in the last few years.
Indigo Manza
Tata Motors has launched its new sedan, Indigo Manza, at a price of Rs 4.8 lacs and Rs. 6.75 lacs (Ex-showroom Delhi). The company would launch Manza in both petrol and diesel variants. The Company already has Indigo CS, Indigo Marina and Indigo XL in its portfolio giving the customers a Choice from Rs 3.73 lacs and 6.75 lacs while buying an Indigo.
BRAND WATCH
KFC - Count your Calories before you eat
Sensing the needs of the increasingly diet conscious urban consumers, Yum! Brands The owners of Kentucky Fried Chicken fast-food restaurant, has decided to put calorie counts on its products in India. KFC already has calorie count information on product packs in some parts of the US. Yum! Brands also own Pizza Hut which along with KFC has 195 stores in India. The company believes that strong demand, triggered by rising income level, would help it increase its restaurant footprint to 1000 by 2015.
COMPANY WATCH
ANZ rebrands itself
ANZ banking group, which operates in 32 countries, is all set for a makeover with a $15 million rebranding exercise, revolving around its new logo. The logo, which includes the image of a human figure, is designed to connect with its customer base. The strap-line of the brand is, ''We live in your world''. This move comes at a time when consumer faith in the banking system has been shaken like never before.
Bingo Binge
ITC took competitors by surprise when it announced to add 50% more content to Bingo without any increase in price in the western region. This is a part of the marketing mix strategy aimed at increasing sales by enhanced customer value and increased repeat usage. At a time when raw material cost is rising, ITC has been able to increase content because of its direct procurement through e-choupal and efficient distribution channels.
Nokia connects to customers

Nokia has completed overhauling its customer care network as a part of strategic shift towards services. It has completed transferring all its 800 service outlets to itself from distributors Brightpoint and HCL Infosystems. The new experience centers are based on the hybrid hardware, software and services approach. Also, the company claims to have reduced average service time for high-level repair in rural areas to 5 days from the earlier 10-12 days. The company has placed 40,000 handsets at the service centers to be provided as back-up phones to customers who give their phones for repairing.
Fortuner rides strong

Toyota Motor Corporation has decided to increase the monthly production of Fortuner, its sports utility vehicle, by 60% given the response since its launch in India this August. Toyota currently manufactures 500 units of Fortuner per month which is set to increase to 800 units by January 2010. The company has already sold 1200 units of this premium SUV which faces stiff competition from Honda CRV, Chevrolet Captiva and Ford Endeavour, all of which are priced in the Rs 20 lacs range.
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Specials
AD WATCH
Colors Bosses for four weeks in a row
Viacom18 Media Pvt. Ltds Colors has held on to the top spot among Hindi general entertainment television channels, ending the week to 17 October with 314 gross rating points (GRPs), 73 ahead of its closest rival Star Plus. The primary reason for the numero uno position for colors is the success of its reality show Big Boss 3 which has maintained an average 3.2% TRP since its launch on 3rd October.
Lux and the Bachachans

Luxs new advertisement would feature Abhishek and Aishwarya Bachchan. Abhishek Bachchan is now only the third man to appear in Lux ads after Paul Newman and Shah Rukh Khan. The new ad, conceptualized by JWT Mumbai and shot by director Stephen Meads, has already caught a lot of media attention. But, it remains to be seen that how successful the couple would be in shooting up Luxs sale, especially given their lack of chemistry on the silver screen.
~ Samrat Singh Yadav | IIM Shillong
Articles Are invited

Best Article: Shweta Jaiswal, Pooja Mandalia | NMIMS, Mumbai They receive a cash prize of Rs. 1000 & letter of appreciation. We are inviting articles from all the B-schools of India. The articles can be specific to the regular sections of Markathon which includes: Perspective: Articles related to development of latest trends in marketing arena. Productolysis: Analysis of a product from the point of view of marketing. Strategic Analysis: A complete analysis of the marketing strategy of any company or an event. Apart from above, out of the box views related to marketing are also welcome. The best entry will receive a letter of appreciation and a cash prize of Rs 1000/-. The last date of receiving the entries is 15th November 2009. Please send your entries to markathon.iims@gmail.com. The format of the file should be word doc/docx.
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Please send in your comments/feedback to: markathon.iims@gmail.com
Team Markathon, IIM Shillong

Markathon Nov09

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MARKATHON

MARKETING MAGAZINE OF IIM SHILLONG

SPECIAL ATTRACTION: PROF. DIPAK C. JAIN ON TRENDS IN GLOBAL MARKETING

FROM THE EDITOR

THE MARKATHON TEAM

Markathon | November 2009

VARTALAAP Devita Saraf

SPECIAL ARTICLE Trends in Global Marketing

COVER STORY The Imperative of Sustainable Marketing

VAIBHAV RAJPUT | MIB-DELHI SCHOOL OF ECONOMICS

PRODUCTOLYSIS Maggi: A friend, A philosopher or a guide?

STRATEGIC ANALYSIS Park Avenue Brand Extension Strategies in Indian context

COMPETITION Silent Voice

PANDORAS BOX Sensory Marketing: Marketing through senses!!

Markathon | November 2009

Communicate through Colour

Markathon | November 2009

Emotional impact of Colour

Colour Nothing but a Language

Markathon | November 2009

Markathon | November 2009

Red Yellow Pink Orange Purple

Black White Multi

Table: Color perception, association and recommendation (adapted from www.seosmarty.com)

Markathon | November 2009

INTERVIEW WITH DEVITA SARAF

Markathon | November 2009

True customer engagement means

Markathon | November 2009

OFFLINE BRANDING VS. ONLINE Branding : What makes marketing successful?

Online branding is completely measurable.

Markathon | November 2009

Markathon | November 2009

Markathon | November 2009

Walmarts Sustainability Index: The Game Changer? -Varshik Nimmagadda

Markathon | November 2009

Patagonia - A business case for -Kaushik Subramanian

Markathon | November 2009

Positive Impact on their Brand Image

BMW: Efficient Dynamics

Markathon | November 2009

Markathon | November 2009

SENSORY MARKETING: Marketing through senses!!

Markathon | November 2009

Markathon | November 2009

Maggi: A friend, A philosopher or a guide?

Markathon | November 2009

Markathon | November 2009

Park Avenue Brand Extension Strategies in Indian context

Analysis of the Brand Park Avenue

Brand Proposition of the original product- Park Avenue Mens Wear

Analysis on the basis of Criteria for Brand Extensions

Markathon | November 2009

How are the extensions helping the brand?

Markathon | November 2009

Markathon | November 2009

Markathon | November 2009

Markathon | November 2009

ANKUR MISHRA, ANKIT SAXENA | IMT GHAZIABAD

PHANINDRA MEDURI, SHIVANI RAWAT | IIFT, NEW DELHI

Markathon | November 2009

Crompton Greaves in its new avatar