Download - Market Rook JULY 2012
Dear Readers….
If you are wondering what is Market Rook,
the answer is that it is the dreamchild of
NITIE marketing group. It is not just any
marketing magazine that speaks latest
trends and reports news from the world of
marketing. But, it is a means to understand
the marketer in each on of us.
In the very first edition of Market Rook, we
have tried to skim through many waves in
the vast ocean of marketing. The new trends
of social media marketing and proximity
marketing have been highlighted and the
rising surge of Rural marketing has been
examined.
Marketers are not just confined to product
industries, but our own bollywood industry
sights many examples of fine marketing and
advertising strategies. We take a look at
some of them in our special segment “This is
Marketing too”.
Rendezvous with 3HD Media, a digital
media startup unveils the changing horizons
of digital marketing space.
Team NITIE Marketing group in
association with our sponsor National
Insurance Co. Ltd. has also successfully
conducted its first online article writing
competrition across 200 B-schools and we
are proud to publish the winning entries in
this edition.
The first theme of the article writing
competition was aimed at analyzing the role
marketing can play in the insurance sector in
India which still remains a large untapped
market compared to the economies of the
West. The second theme contrasts the role of
celebrities and mascots in building a brand’s
image.
Team NMG extends its heartfelt thanks to
all participants and heartiest
congratulations to the winners.
The magazine also promises to be one that
blends fun with learning. Do take a look at
our Marketainment column and learn
Marketing the gaming way.
Dear Readers, We hope the magazine equips
you with all the weapons needed, when you
“suit up” in the marketer armour.
Your valuable feedback would help us grow
and improve.
Once again, welcome to the world of
Marketing where only one rule prevails-
Give what your customer wants,
Or
make him want what you give.
Happy Reading!!
Editor,
Market Rook
NITIE’s Marketing Magazine
1
This edition of Market Rook….
Go Rural: A budding Slogan For Marketing 1 Harsh Kulhara
Mascot Branding vs. Celebrity Advertising 3 Shilpa Sardar, FMS Delhi
Rendezvous 6 Christopher Lopes, Founder, 3HD Media
How can marketing be used to capture the yet untapped insurance
market in India?
9
Nithya Venkatachalam, National Insurance Academy,Pune
Special: This is Marketing too! 12 Raghu Mantangode
Let’s get Socially Connected 14 Swanpil S. Bhure , NITIE, Mumbai
Market-ictionary: Proximity marketing 17 Rinku Vatnani
Marketainment 18 Neha Goyal
Brandomania 19 Deepak Sahu
1
GO RURAL : A BUDDING SLOGAN
FOR MARKETING
Harsh Kulhara
Why Go Rural ?
Rural Markets have emerged as a „Woken up
Sleeping Giant‟, rising faster than
corresponding urban sectors. Growing
economy has ensued in increased purchasing
power for the rural communities, corroborated
through green revolution that advocates use of
industrial and urban manufactured products.
On account of this a dedicated strategy has
come forth to target country side population:
Rural Marketing, the term means marketing
products in rural areas, often confused with
Agricultural Marketing which means
marketing products of rural produce.
Why go Rural ?
Proliferation of brands has saturated the urban
market and set the planners to conquer new
arenas. With increasing population, agrarian
prosperity and standard of living, demands in
rural sector seem to be ever growing.
Eg.NAREGA Scheme.Large inflow of
investment for rural development from
government and other sources provides the
needful to develop the requisite infrastructure.
Increased contact of rural people with their
urban counterparts brings in brand recognition
and budding aspirations.
Moreover, since the rural markets are
laggards in picking up new products. This
will help the companies to phase their
marketing efforts.
This will also help to
sell inventories of
products out dated in
urban markets.
Rural market
estimation by HLL
that out of 6 lakh villages in India , only 1
lakh has been taped so far. Above all the rural
household form about 72% of total household
constituting a huge market for any product by
any standard.
For Rural Marketing to be the next big thing,
another vital input should be from Rural
Marketing research. For the same MART has
compiled rural data which it has made
available to the corporate sector via the
„Marketing White Book‟ and other
publications. Also, Participatory Rural
Appraisal (PRA) is a very successful tool for
social research. This tool has been adapted to
capture rural consumer insights and social
behavior.
Knowing your customers
Some points here may prove to be critical and
lucid enough to lure the big FMCG‟s.
Consumers in rural India buy products more
often (mostly weekly) and prefer to buy small
packs with low unit price. Another advantage
lies in the fact that in villages brands rarely
fight with each other; they just have to be
present at the right place. Many brands are
building strong rural base without much
advertising support. Illustrative examples of
which include Chik shampoo, second largest
shampoo brand and Ghadi detergent, third
largest brand.
One very fine example can be quoted of
Escorts where they focused on deeper
penetration. Looking at the 'kuchha' roads of
village, they positioned their bike as tough
vehicle. Their advertisements showed
Dharmendra riding Escort with the punch line
'Jandar Sawari, Shandar Sawari'. Thus, they
achieved whopping sales of 95000 vehicles
annually.
HLL started 'Operation Bharat' to tap the rural
markets. Under this operation, it passed out
low-priced sample packets of its toothpaste,
fairness cream, Clinic plus shampoo, and
Ponds cream to twenty million households.
BPCL introduced Rural Marketing Vehicle
2
(RMV) as their strategy for rural marketing. It
moves from village to village and fills small
size cylinders on the spot for the rural
customers.
What I feel, contrary to what many people
may perceive, people in rural India are
fiercely brand loyal like Single Brand
Villages. If they are once converted, it may be
difficult to dislodge them and not to miss the
first movers advantages.
For product and its make customization,
suggestions from rural women can be taken
into consideration before actually executing
the production process. Eg.Chotukool from
Godrej-Boyce.
Too penetrate further into the matter ,Build
Recognition here plays a vital role in the
success of any product in rural market.They
tend to understand symbols and colours
better. I still remember my grandma calling
Lifebuoy as Laal Sabun and Nirma as Peela
Powder
How to communicate with the Rural Folks ?
Dalda Vanaspathi Demonstration
Some more live cases
Mahindra Super Turbo 595DI tractor
GSK : ASHA-a milk food drink from
Horlicks in Andhra Pradesh
Nestle began promoting Maggi Noodles at Rs
4 and Maggi seasoning at Rs 2
Coca Cola has begun selling a powder based
beverage called Vintingo at Rs. 2.5 per sachet
across villages in Orissa
The story never ends here and everybody is
looking at Rural sector for potential Business
opportunities.
Conclusion
The bottleneck to penetrate in rural market
would be distribution aspect - the humongous
task of making the product physically
available to over 600,000 villages, most of
them without motorable roads. But it's not
really as nightmarish as it is made out to be, at
least keeping in mind the present goals of
marketing companies in rural India.
Also word of mouth promotion would be the
best strategy to get along as these markets
enjoy limited media updates.
To conclude providing creative products and
their “life time value” to the “bottom of the
pyramid” customers will always be essential
requirements for any rural marketing scenario.
3
Market Rook Article
Writing Competition
2012
WINNER ENTRY
Mascot Branding vs. Celebrity
Advertising
Shilpa Sardar, FMS Delhi
Brand Mascots have an astonishing effect on
consumer imagination. For the last century,
these mascots have been acquiring great
emotional response at the cost of failure of
celebrity advertising. The greatest challenge,
for now, is to identify where mascots fit in
better than celebrities and vice versa. Also,
the job of maintaining and upgrading the
mascot or celebrity endorsement plays a
crucial role in creating a sustainable brand
image.
Measuring the effectiveness:
Short run vs Long Run: Customers need
time to identify with the branding element. A
celebrity accelerates up this process drawing
rapid public attention while mascots take a
while to establish relationship with the
customers. But once it is done, people get
strongly affectionate about the mascots.
Virtual Product: Mascots personifies the
product and delivers the message.
For e.g. the Pillsbury doughboy
created a personality out of
flour. Without a mascot,
how impossible it would
be to position Pillsbury and
deliver the message of such a
virtual commodity.
Trustworthiness vs Negetive
Image: Mascots gain trust slowly, but once
done trust of the brand stays. Celebrities are
fast in gaining consumer trust but that can
collapse any time due to uneven career curves
i.e. due to negative image, public scandals etc.
Reach in the Market: Mascots can reach
where the company can‟t: birthday parties,
games and matches, store openings etc. They
manifest company and product‟s story, reflect
company culture. They gain trust of the
customer and build relationship.
In a diverse market like India, penetration is
far easier with a big celebrity like Amitabh
Bachhan. A star like him can reach across all
the demographic, geographic, psychographic
boundaries and transcend across the
limitations of age, income, language, region.
He has trust, credibility and can gain
maximum attention, can be persuasive and
likeable.
Creativity vs Innovation: Designing
innovative cartoon character with prop, eyes
and different postures, expressions needs
talented resource. Then, mascot makeover over
a longer period of time also takes large amount
of expertise.
But, for creating celebrity brand, issues
involved are popularity of that celebrity in that
product category, age and class of the celebrity,
whether from film or sports, overall public
image of celebrity etc. After analyzing these,
the matching attributes between celebrity and
brand are taken into consideration, which are
more of creation on practical aspects rather
than innovation.
Luxury brands vs Price Sensitive Items:
Celebrities portray aristocracy and richness of
luxury brands like cars, jewellery etc.
Mascots can never replace classy Amitabh for
Maruti Versa or elegant Lara Dutta for
D‟Damas.
4
A price-sensitive non-luxury item like
sunfeast biscuits penetrated the highly
saturated market with the magic of the mascot
sunny.
Fun vs Serious Issues: Mascots are nothing
but fun. A model of Ronald McDonald in
front of McD store is simply a symbol of
elation. Use of mascots in serious matters can
aggravate the situation. For e.g. celebrities
like Amitabh Bachhan are best suited to
advertise for Pulse Polio campaign.
Return on Investment: In celebrity
advertising, there is
high risk high return
ratio due to large
investment. Unless
there is synergy
between the brand
and the celebrity, it
is proved to be
ineffective. On the
contrary, mascot
brandind is far more cost effective with high
return. The Chintamoni ad of ICICI costs only
7 lakh rupees while celebrity endorsement
would cost in crores.
Brand Switching: Unlike celebrities
mascots are owned by companies for lifetime.
Amir Khan switched from Pepsi to Coke but
it‟s never
possible to
exchange
Nerolac
Tiger Goody with Asian Paint‟s Gattu.
Mascots educate people: Current issues
however delicate may it be can be best
communicated by mascots. As Amul‟s butter
Girl speaks about the current matters in a
funny way reaching customers effectively, no
celebrity can ever replicate this putting their
image at stake.
Celebrity endorsement in india has proved to
lessen expenditure on Media and other
publicity. For e.g. endorsement of Hrithik for
Tamarind has cut down the expenditure by
40-50 percent.
Celebrities whom people look up as ideal
have resulted in bringing favorable brand
attitude to purchase decisions increasing
brand association with the customers.
Multiple Brand-one celebrity: Amitabh
Bachhan is enacting Parker, Hajmola,
Navrattan Oil, Cadbury dairy milk and many
more. It affects the credibility of the celebrity
who sells so many products and reduces his
likeability as well as dilutes the brand
association with the endorser.
One Brand- Multiple Celebrity: On the
other hand, Coke has been endorsed by Hritik
Roshan, Aishwarya Rai, Aamir Khan,
Virendra Sehwag and many more in the
category. So many celebrities destroy the
distinctiveness of the product and make the
brand recall difficult.
5
Overshadow the brand:
Both mascots and celebrities can distract the customers from the brand. Fido
Dido of 7-UP deviated the target group from buying the brand and instead
ended up selling the mascot itself through images in tiffin boxes, water
bottle, shirts etc. But with celebrity, it‟s much more prevalent. In a survey,
80% of the respondents could not recall the brand and rather remembered the
celebrity in the ad.
Model of Meaning Transfer: For celebrity advertising, this model of transferring the brand
message to customer is longer and more difficult than mascots. Firstly, the brand has to find a
celebrity whose attributes matches with the product. Then, the message has to be delivered through
the celebrity. Aishwariya is an epitome of beauty, charisma, elegance which has impeccably
reflected through Nakshatra Diamonds.
Mascot: As the sign of resistance to change: Fast changing world environment and rapid
demographic shifts causing ever-changing customer buying behavior and target group of customers,
demand re-branding exercise as inevitable. Mascots preferably establishing long-term connection
are not enthusiastic in facing change. E.g. Asian paints dropped its mascot Gattu due to image
change for mass appeal in rural areas.
Mascots in mature life cycle: When the market is saturated and it is impossible to sell new
products, mascots come in handy to differentiate the product.
Likeability: Mascots are adorable and are something that you would grow likeness for over a
period of time. A Tiger Woods‟ commercial can be attractive but it can‟t be as likeable and
memorable as Pillsbury doughboy. Friendly and smiling mascots with direct eye contact can build
far more strong chords of faith than any celebrity would do.
Emotional Connect & Brand awareness:
People are emotionally connected to the
words of some celebrities like Shahrukh
Khan, Amitabh Bachhan and would believe
their words more quickly and strongly than a
newly launched animated mascot.
War between Vodafone & Airtel: It started
off with celebrity advertising only. Vodafone
brought Irfan Khan whereas Airtel came up
with Madhavan-Vidhya Balan ads to beat it.
But, Vodafone played its masterstroke by
introducing inimitable cuddly zoo zoos.
Conclusion:
Mascots are a one-shot masterpiece. So,
implementing mascots are more difficult and
less costly than celebrity endorsing. Mascots
if built and communicated in a proper way
which is hard to achieve can yield long term
benefits reinforcing the customer-product
relationship.
In an emerging country like India which is
dominated largely by rural population, perfect
competition exists in the leading sectors like
FMCG, Retail etc. Low cost mascots will
soon be encompassing these sectors where
product differentiation is difficult with low
price margin.
6
New Avenues in Advertising
(Exclusive Interview with Mr. Christopher Lopes, founder, 3HD Media)
With Facebook becoming a unique country in itself, with every autorickshaw wala and every
handcart puller carrying a mobile, with a growing majority of people seen talking when
walking, with the dog following wherever you go and with the number of hours spent online
being more than the hours spent eating and sleeping, Digital and Mobile Advertising has
become more and more attractive for marketers.
3HD Media is a rich digital media agency offering an endless list of digital services all aimed at
engaging the customer on one single touch point that the customer never fails to carry along and
that is their mobile phone.
To find out more about this unique media agency and the ultra-unique services it offers to its
clients, Market Rook had an exclusive talk with Mr.Christopher Lopes, founder, 3HD Media.
7
How was the company started? What ideas and
insights laid the foundation for 3hdmedia?
We just started a couple of months back and we
are growing at a very fast pace. 3HD Media is a
digital media agency and what led to its
formation is the fact that India is a very young
country with 1/6th of the world’s population
making it the cradle of humanity. Facebook and
other digital media space is growing and will
grow in the months to come.
We recognized this potential and developed an
algorithm that could detect people’s mood on
Facebook and it could be utilized to filter and
send selective advertisements to them depending
upon their moods.
From there we picked up and we are galloping
high.
So how fast is your company growing? What is
your Business model like?
3HD Media is a self-financed company. We have
already achieved our break even. We have a
collaboration with a lot of other companies
mainly telecom and earn on a project basis from
our clients.
How do you track the effectiveness of any
campaign or project? The conversion ratio….
The online medium is very easily traceable. It is
unlike the traditional television medium wherein
you have the TAM publishing TRPs for about a
140mn plus based on a sample of just 4000
monitoring meters installed.
Moreover, the digital medium is a 2 way
communication. I don’t like to talk in terms of the
ROI. In my opinion, the world has moved from
being a world of interruption to a world of
interaction, from interaction to engagement, and
from engagement to a world of involvement.
Hence, what is important in today’s times is the
Return on Involvement. The digital medium is one
which can effectively deliver that.
Do you mind mentioning some of your clients.. As a policy, we don’t mention the names of our clients but I can tell you that we have our clients spread across all sectors of the Industry. How effective is the digital medium in terms of
reach and cost in comparison to the traditional
media of radio, television, print and cinema?
Let me give you some stats. Today India has
about 900 million mobile users and each of the
top three telecom operators in India have a
customer base of over 130 million each. That says
about the reach of the digital medium. As far as
the cost is concerned, it is definitely cheaper as of
now than the traditional media esp. television.
A new study that was revealed by Millward
Brown’s Dynamic Logic at Advertising Week’s
Mobile Media Summit, said that Mobile display
advertising generally outperforms online display
advertising. Yet it was reported that ever since
TRAI announced DO-Not-Call registry service,
mobile users are ditching the tele-marketers and
within 5 days, over 5 million people had already
subscribed to the service.
Your comment…
I believe that mobile users will not reject your
advertisement if you give them what he wants. In
most of the cases, digital advertising is done via
bulk SMS without giving much thought to the
target group. I believe that a customer, in the
context of SMS based advertising, says “Show me
that you know me.”
And the idea is one should know how to filter and
reach out to the correct target group, people will
be interested in what you want to give to them.
What is Location Based Advertising? And how
has it benefitted your clients?
Suppose you are 100 metres away from
McDonalds. And I float a message on your
mobile- Get a coke free with a McVeggie. You are
likely to drop in and treat yourself. That is the
power of Location Based Advertising. In terms of
8
how it benefits the clients, it’s a simple answer. It
increases their sales..
A successful product launch today requires an
integrated approach; what role does internet
marketing (or in particular, 3HD Media) play in a
product launch?
For example, let’s say there is a product launch
happening in Mumbai. I could stream that
product launch across the country on the mobile
phones. We have done that in the past.
How do you see companies like McCann Erickson
and Ogilvy & Mather? As high end
competitors?.. Or PayPod, Ozone Media,
Sulekha Ad Network …
We are basically a technology company. We are
not an advertising company. So we don’t compete
with these advertising companies.
In terms of Technology, we could offer you on a
2G network, a 12fps experience on a 70Kbps
bandwidth.
The other companies you mention are also not
our direct competitors. I haven’t yet heard of any
company offering what 3HD media company.
Your company has recently started offering
summer internship programs in streams MBA,
BMM, BMS, BE, MCA. How lucrative are profiles
such as social media manager, or telemarketer
vs. the established profiles of Marketing.
My bit of advice to everybody in the marketing
industry, you should be very keen about the
online medium because that is one medium that
is the talk of the town today.
Most of the marketers today ignore the online
medium which they should not as this medium is
bound to grow tremendously.
Most B-schools today, to be very honest, are still
a lot into traditional marketing. I have been in
touch with a lot of B-school students across the
country. Most B-schools today are training you
physically and mentally for white collar jobs and
my suggestion is that they should offer not only a
course in MBA but also in MBC i.e. Masters of
Business Creation. Not many of these B-schools
are producing entrepreneurs.
You know, it’s the most interesting time of
humanity these days esp. in a country like India.
And it’s so interesting being an entrepreneur in
these times, you have knowledge floating all
around and we are leading such a young country.
What are the skills you look for, in a social
media manager?
To be honest, yes it does require some bit of basic
IT skills. For example, when I talk to an MBA
Systems guy and I ask him to create a Facebook
page. Trust me; there are guys that don’t even
know that. But they are system guys. So, you
don’t have to know HTML, Java, ASP, .Net; but yes
basic exposure to IT is required for this kind of a
job.
I really suggest that B-schools across the country
change their curriculum to incorporate
technology courses and courses on
entrepreneurship and ideation.
Keeping in mind that the world is changing fast
and we live in an uncertain world. And in
uncertain times, ideation is the only way to
survive. If you look at Google or Facebook, they
were not born from inherited Businesses but from
a simple idea.
Scope of Digital Medium in India viz a viz in the
US.
We are galloping high. What US has reached in
10years, we would reach in 2 years. Keeping in
mind a country like India, Marketers cater to a
niche and in India even niche is large.
So my thoughts are that the digital medium in
India is going to move much much faster.
9
Market Rook Article
Writing Competition
2012
WINNER ENTRY
How can marketing
be used to capture the yet
untapped insurance market in
India?
Nithya Venkatachalam
National Insurance Academy,Pune
Need for Insurance penetration:
India with an average growth rate of 8% for
consecutive years, including modest growth
rate of 6.7% during recessionary period of
FY091 is among the fastest growing
economies. There exists inter-relationship
between economic growth and insurance
deepening.
The potential and performance of the
insurance sector is universally assessed using
two parameters, viz., Insurance Penetration
(contribution of the insurance industry in
relation to a nation's entire economic
productivity) and Insurance Density
(Insurance purchasing power). They reflect
scope of insurance sector in a country. As on
July 2011, new premium collection from all
Indian insurers2 (24-Life, 24-General, 1
national reinsurer (GIC), ECGC, Agriculture
Insurance Corporation of India and ESIC)
was Rs.4249 Cr.
Insurance density was USD 64.4 in 20103.
Insurance penetration was only 1.93% of
GDP (life -1.39%, non-life 0.54%) in 19994,
which increased to 5.25% in July 2011 (life:
4.60% and non-life: 0.65%). This number is
abysmal for a population of over 1 billion.
Notwithstanding this growth, most of what
we have learned relates to banking systems
and securities markets – with insurance
receiving only a passing mention.
Reasons for low penetration:
Mindset - Indians are skeptical about
untimely death and dismiss need for
insurance.
Insurance perceived as “push” product - It is
mostly “sold”, rarely “bought”.
Purpose – e.g. Life insurance is taken for
investment, tax saving, in short for
everything apart from need for insurance.
Being an intangible product it is more
difficult to explain.
How and where to begin for insurance
deepening?
Insurance being a subject matter of
solicitation the strategy is:
Explore---Examine---Expedite
People (Explore)
Probing (Examine)
Process (Expedite)
Segmentation based on:
demographics – age, gender, income
bracket, education, job
psychographics – social class,
lifestyle, personality
behavior – consumer behavior based
on shoppers, brand preferences
geographic – province, city, state
10
Targeting – multi segmented approach
providing specific policies for specific
customers through specific channels.
Positioning – Insurance companies should
position themselves as entities that are
infallibly committed to support aggrieved
customers during crisis times when help
sought is the most.
New distribution channels:
Apart from existing channels of distribution
including direct agents, Bancassurance,
brokers, tele-marketing and latest being
Mallassurance5 (e.g. – Future Generali
Insurance sold at Big Bazaar outlets) some
unconventional channels that can be explored
are:
Teleassurance (Microinsurance Distribution
through telecom operators)
As on Dec 2011, India had 893 million
mobile users6. Microinsurance (involving
small premiums) can be marketed using
teleassurance by partnering with IRDA
certified mobile operators for selling simple
products. This channel facilitates ease of
premium payment which can be added to the
monthly postpaid bill or fixed amount
deducted from prepaid phones with every
usage.
Partnership with Electricity Distribution
Company:
Microinsurance is the opportunity to large
untapped rural insurance market in India.
Customers can be offered alternative, non-
electricity products that can be paid through
their electricity bill including insurance. This
model is successfully implemented between
Codensa, an electricity utility company, and
the insurance company Mapfre in Columbia7.
According to Central Electricity Authority
(CEA), as on Dec 2009 around 18% of
villages and 45% of total households in India
had no access to power8.
Thus, more than 10 distribution
companies providing electricity to remaining
82% villages apart from urban centers qualify
for such distribution. With no intermediaries
over and above the sales force, this channel
will be highly profitable and cost-effective.
Adoption of these strategies will require
capital, resources and infrastructure, funds for
which can be raised through Initial Public
Offerings (IPOs). Thus permitting private
insurers to come up with IPOs will fuel
insurance penetration.
Web enabled channels:
(Social media, company websites,
community sites, search engines):
India has crossed the landmark 100 million
mark of internet users in September, at 112
million users (88 million urban + 24 million
rural villages)9. Smartphone devices, budget
tablets are other sources of accessing internet
while on the move. Customers turn to
websites to fulfill their policy purchases,
renewal, termination, quotes and premium
comparisons. Presence in social networking
media will help insurers connect attentively
with customers.
Thus, web enabled channels accelerate:
1. Customer Acquisition
2. Customer Retention
3. Agent Acquisition
11
4. Employee Acquisition
5. Brand Promotion
Regulator - should advertise the benefits and
importance of insurance in mitigating
risks in a concerted fashion on lines similar to
those of educating consumer rights (“Jago
Grahak Jago”), promoting tourism (Incredible
!ndia), promoting Ayurveda/Homeopathy
medicine etc.
Scope and Limitations:
According to IRDA figures of Nov 2011,
India has about 57 crore of insurable
population. Distribution channels comprising
brokers, bancassurance, corporate agents
accounted for nearly 2110
percent of all new
business in the year 2009-10.
Greater insurance penetration generates
more employment, rise in per capita income
and growth in GDP resulting in systemic
effect. Health insurance premium size is
expected to reach to Rs 30,000 Crores by
201511
. This coupled with increasing
healthcare costs and inflation makes the
segment lucrative. Motor insurance is
mandatory (section 146 Motor Vehicle act
1988) and annual vehicle sales projected to
increase to 5 million by 2015 gives an idea of
potential of this market. Intermediaries are
restricted to selling products of only insurer
each for life and general thereby limiting
customer‟s choices. Social media opens up a
window for critics, bad customers to vent
their anger leading to negative publicity.
Spammers, phishing attacks, lack of internet
access restrict feasibility of promoting
insurance online. With huge power crisis,
electricity supply being intermittent,
unreliable and over 300 million having no
access to electricity, people have little faith in
core competency of electricity distribution
companies. Under such circumstances,
providing services deviant from their core line
of business including insurance may cast
doubt in minds of people about the
effectiveness of such a channel. In the race for
acquiring market share, there is lot of miss-
selling in insurance.
Despite its significant role in economic
development, insurance penetration in India is
low because of lack of awareness, mindset,
agent turnover, lack of capital etc.
Notwithstanding any of these factors, mission
of insurance sector should be to reach nook-
and-corner of the country. Micro-insurance is
necessary as success of schemes meant for the
rural poor in India like the National Rural
Employment Guarantee Scheme (NREGS)13
,
Rashtriya Swasthya Bima Yojana (RSBY),
Arogyashri, Indira Awaas Yojana etc.,
depends fairly on the ability of the financial
system to mitigate the risks arising out
of unforeseeable natural calamities and other
disasters. Customer Relationship
Management, customized innovative policies,
augmenting business from existing
intermediaries and encouraging
unconventional channels of distribution is the
need of the hour.
12
Special: This is Marketing too!
Raghu Mantangode
Movie Marketing is the practice
of promotion specifically in the film industry.
As with all business it is an important part of
any release because of the inherent high
financial risk; film studios will invest in
expensive marketing campaigns to maximize
revenue early in the release cycle. Marketing
budgets tend to equal anywhere between half
or three times the production budget.
Publicity is generally handled by the
distributor and exhibitors.
Techniques
In theaters
Trailers are a mainstay of film promotion,
because they are delivered directly to movie-
goers. They screen in theatres before movie
showings. Generally they tell the story of the
movie in a highly condensed fashion
compressing maximum appeal into two and
half minutes.
Film posters
Slideshows - stills, trivia, and trivia games
from the film, shown between movie
showtimes.
Standees (freestanding paperboard life-size
images of figures from the film)
Cardboard 3D displays, sometimes
producing sound
Television and radio
Hollywood movie distributors spend about
$4 billion a year to buy paid advertising (30-
second TV commercials, newspaper ads, etc.)
and over half that total is placed on broadcast
and cable TV, which are the main vehicles for
advertising movies to audiences. TV is
effective because it is an audio-visual medium
– like film – and can deliver a vast audience
quickly, which is crucial because films
typically don‟t linger in theatres more than 4–
6 weeks, according to Marketing to
Moviegoers: Second Edition.
Product placement: paid active or passive
insertion (as on-set posters, and action
figures) of film brand in drama or sitcom
shows, or as passing mentions in dialogue.
For example, 20th Century
Fox commissioned an I, Robot-themed
motorcycle, featured on two episodes (2:17,
2:18) of American Chopper. The
film Memoirs of a Geisha was placed
throughout an episode of the T.V.
showMedium.
Extended placement: full episodes of
television talkshows (Oprah), entertainment
news programs (ET), or network news
programs (20/20), devoted to compensated
exposure of the film, stars, clips, director, etc.
In addition, interviews with actors and
directors which are filmed en masse at a hotel
with local and national entertainment
reporters which are featured on local
news shows, programs on cable networks, and
series such as Byron Allen's series of
entertainment series like Entertainment
Studios.
Production and paid broadcast of behind-
the-scenes documentary-style shows, the type
of which are mainly produced
for HBO, Showtime and Starz.
Advance trailers, longer previews, or
behind-the-scenes footage on rental videos
and DVDs.
13
Internet
Creation of standalone studio-sponsored per-
film websites such as "example-the-
movie.com".
Viral marketing: free distribution of trailers
on movie-oriented websites and video user-
generated-content websites, and rapid
dissemination of links to this content by email
and blogs. Includes alleged leakage of
supposed "rushes" and "early trailers" of film
scenes. Sometimes, the efforts go further such
in the lead to the successful premiere of the
film, The Muppets which preceded by several
original film shorts on YouTube over a
number of years while the film was in
production.
Creation of Internet Marketing campaign
using Paid Advertisement and Social Media
Marketing
Marketing through new online film market
services such as Rightstrade and Mediapeers
Paid advertisement in newspapers,
magazines, and inserts in books.
Cross-promotion of original book or
novelization, including special printings, or
new cover jackets ("Now a major motion
picture.")
Comic special editions or special episodes
Merchandising
Paid co-branding (Eragon in American
Chopper-two episodes), or co-advertising
(Aston Martin and James Bond films) of a
product with the film.
Promotional giveaways: branded drink cups,
toys, or food combinations, at fast food
chains.
Promotional tour
Film actors, directors, and producers appear
for television, radio, and print media
interviews, sometimes showing a clip from
the film or an outtake. Interviews are
conducted in person or remotely. During film
production, these can take place on set. After
film release, key personnel make appearances
in major market cities, or participate remotely
via "satellite" or telephone.
Audience research: There are seven distinct
types of research conducted by film
distributors in connection with domestic
theatrical releases, according to "Marketing to
Moviegoers: Second Edition." Such audience
research can cost $1 million per film,
especially when scores of TV advertisements
are tested and re-tested. The bulk of research
is done by major studios for the roughly 170
major releases they mount each year that are
supported by tens of millions of advertising
buys for each film. Independent film
distributors, which typically spend less than
$10 million in media buys per film, don‟t
have the budget or breadth of advertising
materials to analyze, so they spend little or
nothing on pre-release audience research.
When audience research is conducted for
domestic theatrical release, it involves these
areas:
Positioning studies versus other films that
will premiere at the same time.
Test screenings of finished or nearly
finished films; this is the most well known.
Testing of audience response to advertising
materials.
Tracking surveys of audience awareness of a
film starting six weeks before premiere.
Exit surveys questioning film goers about
their demographic makeup and effectiveness
of marketing.
Title testing in an early stage.
Concept testing that would occur in
development phase of a film before it is
produced.
14
MySpace, Orkut and Facebook
• To stay in touch with friends
• Share ideas
• Meet new people
• Best for entrepreneurs and professionals
• Create contacts for hiring / outsourcing
Flickr
• Sharing photos
Let’s get Socially
Connected
Swanpil S. Bhure
NITIE, Mumbai
Anyone cognizant about innovations in
internet technology and computer mediated
communication streams (whether for business
purposes or personal discourse), has probably
noticed the surge in usage of interactive
membership communities, more commonly
known as "social networks" and "social
media." New research by Knowledge
Networks states 83% of the entire online
population, aged 13 to 54, now use the
internet to engage in social media. Social
media marketing involves using membership
spaces to engage and connect to an audience
of potential customers in the language and in
the places they are accustomed to. Put simply,
if prospective customers are using online,
social networking communities, then that's
where an organization's outbound marketing
messages should be. Now there are no
traditional divisions between the marketing,
advertising and branding. The far-flung use
of social media calls for a fully integrated
approach to communicating the value of the
brand by integrating the social media
marketing into all phases of marketing plan.
Social media site brings a revolution in the
overall sale and traffic, if marketed properly
using some best SEO techniques. Companies
use social media tool to launch a product and
also to interact with its customers. In fact,
there are many companies have used social
media to promote their brand to improve and
some of those companies have achieved
remarkable success. Top 10 social media sites
are:
1. Orkut
2. Facebook
3. Twitter
4. Flickr
5. Hi5
6. My Space
7. Xanga
8. Linkedin
9. Blogger
10. WordPress
The success of social networks marks a
dynamic shift in how people are using the
Internet. We‟ve evolved from just searching
for information to creating and participating
in social spaces with other individuals
through the Internet. This model is based
upon the hive mentality where people identify
themselves as part of a group with similar
likes and interests that draw them together.
This is easy to do online because the
traditional communication barriers of physical
locations no longer exist.
SEO and Social Networks
Social networks make viral marketing and
word-of-mouth marketing much easier than
before. The best use of social network is not
to make money „directly‟ off them, but to
harness their marketing potential and to use
them to market your business. The main goal
of any search engine marketer is to drive more
traffic to their site. The best way to do that is
to optimize your website for your target
keywords. Online social networks present an
efficient platform for you to use in the spread
of your marketing message. In addition, it is
also a great tool for getting tons of visitors
and thousands of page views to your site.
works in the exact same fashion, except
15
•The audience you are targeting
•The message you are sending
•Plot proper strategy before implementing
Think
•A topical conversation about the brand and listen the response
•Learn what the audience want and what motivates them towards the product or services
Create
•Have a honest discussion on what the customer want and how they can fulfill that
• Instead of pushing the customer try to pull them toward the brand
Engage
•Real-time information
•Tell the real stories that are really happening
Provide
people choose to provide your link without
being asked to do so, and places like
del.ici.ous, Digg, Blogpulse, and Technorati
give them the ability to do that.
In offline terms, that means turning towards
your friends and family to ask for their
opinions. Online, it means turning towards a
group of trusted people whose opinions and
recommendations you value.
Indian companies in social media
marketing
There are many companies in India who are
doing good in social media marketing and one
of the companies is DOCOMO. The Tata
DOCOMO social media strategy has been
carefully built on five pillars.
Build consumer
engagement
Beyond the day
to day and one-
on-one
interactions with
our fans and
followers, Tata
DOCOMO has
constantly
launched
consumer
engagement
programs with a
heavy social
media angle.
This has helped
us build repeat
engagement
points with a
large number of
our fans. Be it diet sms which was rolled out
exclusively through social media, ageekthing
which involved Orkut, gadgets, Facebook
applications and automated Twitter tools or
happy DOYear which could be played
through Facebook, Twitter and Orkut.
Address and resolve complaints
Even before the launch of social media
engagements, a dedicated customer response
mechanism was laid out for priority resolution
of all social media grievances / enquiries. Top
management at Tata DOCOMO has taken
great pains to make sure that literally the buck
stops when an issue is raised through social
media channels. From activation problems,
network issues, handset settings or billing
related matters, every single issue has been
promptly addressed and resolved. Comes as
no wonder therefore that initially the Tata
DOCOMO Twitter account was nicknamed
the “unofficial helpline”.
Web
strategies
There are
certain
factors that
are driving
the
popularity
of the social
media
marketing.
Actually the
number of
potential
customer
engaged on
social media
is
underestima
ted by many
organization
s. The economic turndowns where there are
very few customers in general and finding and
engaging them is the higher priority. The
applications of Social Media Marketing can
be many, we have to just target the potential
16
areas and hit them. Some of the strategies that
are followed:
• By the use of this medium we can figure it
out what the people is talking about your
customer. So, before making a deal with your
potential customer you have an idea about
your customer.
• There are many blogging websites on
Internet, but you have to identify which blog
is the one who can satisfy your requirements
better.
• Find your competitor on web and follow
them on Facebook and Twitter etc. to check
out their new strategies, products and data.
•The site‟s traffic is the measure by which we
can study the effectiveness of our website and
www.compete.com is the one who gives the
opportunity to study the traffic of our website
with respect to other competitor‟s website.
Create informational podcasts about a
product‟s overall space, not just the product.
Explore distribution. Can you reach more
potential buyers/users/customers on social
networks?
Ensure you offer the basics on your site, like
an email alternative to an RSS subscription.
In fact, the more ways you can spread and
distribute your content, the better.
Uploading video interviews, video press
release and other videos to build more
personable relationship.
Crowd sourcing
Very early in the social lifecycle of the brand
Tata DOCOMO realized it had hundreds of
well-wishers who were all brimming with
ideas on new product-service offerings that
could be a real differentiator for the company.
The social team has repeatedly engaged with
its beta consumers, collecting feedback about
usage, preferences, bounced off product ideas
and pretested concepts to help the product
team develop compelling product service
offerings. The icing on the cake was when we
involved our techy Twitter followers to hack
into a social game launched by Tata
DOCOMO as part of the ageekthing contest
and suggest ways to prevent others from
doing so. Many of the recent product service
launches like GPRS packs and parts of the
buddy Net program have been built on crowd
sourcing inputs.
Build brand advocacy
Continuous engagement and proactive
problem resolution has helped Tata
DOCOMO build extremely loyal fans on
social media. Innovative ways of recognizing
such efforts through fan of the week on
Facebook and Twitter has further enhanced
the cause.
Micro communication
With close to 100,000 direct followers and
over 6 million secondary reach, all
communication from Tata DOCOMO enjoys
a sizeable instant audience. However our
social team remembers the names,
occupations and past communications with
thousands and thousands of our fans. This
helps us micro communicate with each
individual building a personal touch and
therefore a high impact to our messaging.
Conclusion
Products are something that are created in
plants, brands are something that are created
in the minds and mind contains impression,
Impression about an item, an event or a
person, and social media marketing is doing a
marvelous job in creating impressions in the
minds using its networking power.
17
PROXIMITY
MARKETING
Rinku Vatnani
Imagine one fine evening, when you are
walking with your girlfriend alongside the sea
at Bandstand, wondering where you could
take her for dinner. A place which wouldn‟t
hurt your wallet much and would also not hurt
your girlfriend‟s expectations. And suddenly
you receive a message on your Samsung
Galaxy, “Pizza Hut offers 30 % discount just
for today. Drop in at the nearest Pizza Hut
parlor”. Probably your first thought would be
like – “Wow, God really exists and He does
seem to have improved on his response time
of fulfilling wishes”
Exaggeration apart, Proximity marketing
does have that power if used on the right
target group. So what exactly is this proximity
marketing? It refers to a localized broadcast
of an advertising message associated with a
particular place. Advancements in digital
technology, coupled with growing consumer
acceptance of mobile marketing, have made
proximity marketing a lucrative field for
marketers today. To support the same,
consider these statistics: The number of
mobile phone users in the world today are
proximately 5.6 billion out of which, India
with a mobile user base of 903 million ranks
second after China in terms of mobile usage.
The very numbers provide an opportunity for
marketers to get their product or service
noticed.
Proximity Marketing may use various
medium for broadcast, the prominent ones
being
Bluetooth
Near Field Communication(NFC)
– based Systems
SMS ( Short Messaging Service)
Some of the observable benefits of Proximity
marketing are:
The reach: More target-specific
Better chance of turning prospects into
customers
Offers rich content to the recipients which
can be either static or interactive (movies,
images, games, redemption codes)
In terms of Bluetooth Proximity marketing,
advertisers will be able to record all devices
identified and messaged, and track which
devices have accepted or rejected their
message, maintain them to improve future
advertising.
Unlike the traditional medium, marketers
can track the effectiveness of their campaigns
easily.
Despite the many benefits there is a flipside to
the coin. Ethical and moral debates are
associated with this kind of marketing. It may
also have a negative influence on the minds of
customers and may hurt brand images if
customers perceive this kind of advertising as
too pushy and feel that companies are
pressurizing them by sending marketing
literally into their pockets.
Despite the cons, the pros are strong enough
to enable this means to become the marketer‟s
favorite in the near future.
So folks, watch out on your mobile. Your
wishes are being heard!!
18
CLUES ACROSS
1. Thinking only about product and not about market (2 words)
4. Major part of Place in the marketing mix
6. What people think of your brand (5,5)
9. Product _____. Getting customers to buy a product for the first time
10. When people don't want to pay more they are price ____
14. The number of products you have
15. A brand that is owned and promoted by retailers rather than manufacturers (3,5)
16. Money put into the product
18. TV, Magazine and newspaper advertising (5,3,4)
20. The life of a product (4,5)
21. Research designed to provide information about opinions, attitudes and behaviors
CLUES DOWN
2. Product or brand with a high share of a mature or declining market (4,3)
3. Company that has the biggest share of the market (6,6)
5. Direct mail, PR and product placement (5,3,4)
7. Get the right ___ of the 4P's
8. Distribution __________. How a business gets its products to the end
10. Surveying a small group of a population to gain research insights
11. The group of consumers or customers aimed at by a business (6,6)
12. Makes it different from its competitors
13. _________ pricing. Setting a low price to gain a higher share of a market
17. Extra benefits
19. Marketing promotion that relies on word-of-mouth or online networks to spread the message
Find answers at our facebook page.
19
Deepak Sahu
Garnier: Take Care
Garnier is a brand
that epitomizes
smart marketing
practice. This is one of the global brands
which have understood the dynamics of
Indian market. Garnier can be considered as a
masstige brand. Although positioned as a
premium offering, the brand was wise enough
to price it reasonable. Currently Garnier is
targeting the middle and upper socio-
economic class.
Loreal uses a strategy based on product
innovation which works best for a brand like
Garnier. When the consumer sees regular new
product flow from the brand, it creates a sense
of excitement with in the consumer which
will prompt her to stick to this brand. Garnier
was the first brand to introduce a cream based
hair coloring solution.
Garnier is present in the hair-care and skin-
care segments and has two sub-brands:
Garnier Fructis and Garnier Ultra Doux
Fructis is an interesting sub-brand which has
clicked in the Indian market because of its
positioning as a fruit based product and
consumers readily embraced the product
because it made sense to depend on a natural
shampoo rather than chemical based one. The
brand has a very catchy tagline "Take Care ".
Garnier's positioning strategy is more
products based in
the sense that it has tried to emphasis
individual product properties rather than a
common brand image. Most of its
commercials are emphasizing on product
strengths and innovation which is an example
of a successful rational product based
advertising success.
Another interesting marketing strategy
adopted by Garnier is its advertising
execution. True to its global parentage,
Garnier was careful in its advertising theme.
It uses a blend of foreign and Indian models
and themes for its campaign. Garnier ads can
be termed as localized international
advertising which has a global touch but does
not appear alien to Indian realities.
Garnier recently launched another new
innovative product in the Indian market -
Garnier Shampoo + Oil 2 in 1 shampoo. This
is something that Indian consumer has never
seen before. Garnier Oil + Shampoo are a
blend of 3 oils and shampoo.
The brand tried to redefine a negative
relationship between two attributes and tried
to convince the customers that there is a scope
for oil and shampoo working together
positively. The brand developed a credible
story that consumers had to agree. Once
established, it proved to be a powerful
differentiator.
The premium positioning, smart pricing,
heavy investment in brand promotion,
innovative products and strong distribution
reach has enabled this brand to create a
special place in the Indian personal care
industry.
Well, a lesson for aspiring brands!!
20
ALL OUT
All out is the mosquito repellent brand of
Karamchand Appliances Private Limited.
KAPL might not a familiar name for the
average Indian consumer. However, KAPL's
brand 'All Out' is very well-known. In fact,
the name All Out is almost a generic name for
Liquid Vaporizers segment. Within a decade
of its launch, All Out had converted a large
number of customers into vaporizer users, and
had also established itself as the market leader
in the segment. The initial success of All Out
was largely due to technological innovation
and first-mover advantages; it was widely
believed that what had kept the brand going
was strong marketing.
While the other companies concentrated on
the coils and mats markets, KAPL promoted
the use of vaporizers. Vaporizer reportedly
doing extremely well in the Japanese market,
as it was much more effective than mats. The
name All out was coined by younger brother
Naveen after KAPL rejected the agency's
recommendations on a name Choo Mantar .
Choo Mantar was dropped as it would not
have made sense to non-Hindi speaking
people and the brothers felt that All Out was
better than Freedom.
As we already know that what kept the brand
going was strong marketing. An out of box
solution or what you can say a bold step
KAPL took when it decided to handle the
advertising for All Out on its own, surprising
many industry
Watchers and drawing criticism from some ad
agencies. On television, KAPL preferred to
sponsor news programs rather than costly and
more conventional soaps or game shows such
as the hugely popular Kaun Banega Crorepati.
The company also pioneered the concept of
sponsoring song/dance and fight sequences in
movies on many satellite television channels
(primarily) SitiCable and Doordarshan. All
Out advertisements would appear before each
song/dance and fight sequence in the movie.
As Hindi movies typically featured 4-5
songs/dances, the viewers watched the All
Out advertisement at least 4-5 times. This
resulted in the brand attaining a very high
mind-share among consumers.
The famous trademark advertisement of
Allout featuring the animated frog came
during that time. The ad showed the Allout
machine like a jumping frog eating all the
mosquitoes. The ad was a big hit among the
consumers. The ad was simple and
communicated the brand purpose effectively.
More than two decades old, brand AllOut is
repositioning itself. It has put to rest its most
powerful brand element and mascot - the
animated frog - and changed its tagline from
'Maccharon Ka Yamraaj' to 'Maccharon Pe
Vaar, Surakshit Aapka Parivaar.'