Professional Documents
Culture Documents
Recent trends in
Marketing
Videocon’s Brand
Makeover
Unique Marketing
Strategies
marketing
in times of slowdown
Fuelling thoughts
1 AD Review: HAVELLS
How this brand has made Recession a
part of their creative idea
12 Alekhya Chakraborty
Rahul Pangasa
14
19 Product review: Bingo
12 & 14
The rise and rise of Bingo –
What makes the brand tick ?
22 Strategy: Videocon
A Review of Videocon's Brand Makeover
19
25 Innovative Marketing &
CommunicationsTechniques
29 Expanding horizons of CAUSE MARKETING
Companies flaunting their social conscience through cause marketing
Editor’s Desk
Dear Readers,
Ramya Dadana
We look forward to your valuable suggestions, feedback and any queries. Do mail us at
markup.markezine@gmail.com
EVENT CORNER: AD-O-HOLIC 2009
T
his article of Markezine will try to
review “Shock laga kya” ad Havells was largely a B2B company but
campaign of Havells India and when it started dealing in consumer
discuss its merits and demerits and products after 2003, it developed a
suggest some measures to revive it. penchant for advertisements. It hired ad
However, before we start, it's better to agency Lowe ad and media agency group
have a brief for its advertising which came with the
following:
F
rito Lay has been the success mint flavour with herbs, and original
story for Pepsi in India. And with salted.
the introduction of its Aliva
Price: Aliva has been made available at
brand the success of Kurkure has to be
an introductory price of Rs 12 for 60
carried forward by it. This also marks the
grams against its printed price of Rs
third phase of story for Frito Lay after
14.So also Aliva's biscuits have been
Lays and Kurkure. Aliva is being
priced higher than other similar brands
positioned as the healthy and tasteful
in the market like Parle's Monaco is
and Frito lay is bullish on its success
available at Rs 7 for a 75 gm pack, ITC
because of the new offering it has and the
Foods' Sunfeast
way their research
Snacky is priced at
results have been. So
Rs 10 for 100 gm and
also the positioning
Britannia's 50-50 is
has been done
selling at Rs 7 for 65
mainly against
gm. Hence they are
biscuits category
charging a price
which is roughly
premium for extra
around Rs 8500
benefit of health
crore and has a lion's
being included.
share in Indian
snacks market. We will be looking into Place: Since it has the successful
the depths of this offering through the distribution network of its Kurkure
basic tools of marketing which are 4P'S brand, hence Frito Lay would be leverage
and STP. the existing distribution network by
which Kurkure has been made available
I) 4P'S of ALIVA
to consumers in more than 1 million
Product: Aliva crackers have been outlets countrywide. They have zeroed in
made from a combination of baked on top 100 towns in terms of per capita
wheat and chana dal, which is healthier income and population concentration
than Kurkure that are fried snacks made for the initial phases and then the
and salty snacks apart from being a ingredients like wheat and dal which
healthy food with ingredients like wheat strengthen the health factor association.
and daal has been defined.In fact Aliva Also Aliva is packaged such that the
marks the creation of a new baked packet is able to stand up straight
savoury cracker category. without being held by the consumer
while consuming the product directly
2. POP from the pack, a feature which is not
POP'S are driven by two basic needs - to available in any of Frito-Lay's products
establish category membership and to including Lays, Kurkure etc and hence a
negate the competitors POD'S. But in new proposition altogether.
this case of Aliva which has the Brand Benefit Level: The biggest benefit
ingredients, textures of biscuit and that Aliva carries is of healthy and tasty
flavours of Namkeens certainly marks food.Since any buyer is interested in the
the beginning of a new baked savoury benefits of a product, so during
cracker category. So also being backed by positioning of Aliva health benefit has
Frito Lays which has successful brand been emphasized.
like Kurkure under its umbrella makes it
a legitimate offering. Overall besides being a healthy food with
ingredients like wheat and daal, fritolay
3. POD is also positioning Aliva as a baked
Generally it is up to marketers to decide cracker in the category between biscuits
at which level to anchor the brand's and salty snacks targeting people
POD'S. We will be looking at Aliva's POD seeking healthy snack options. Now it is
from two levels. up to the Indian consumers and how they
Brand Attribute level: - Aliva has value this proposition.
VALUE PROPOSITION
F
rom Barter system to experiential Technology is a massive tool that allows
marketing, times of Aristotle to us to connect, stay in touch with, and to
modern internet, the world of influence.
marketing has changed manifolds.
Giants like HLL, Dabur and Wal-Mart From segmentation to insights
have understood the need of customers
from time to time and have been It's time to move more inside the
innovating for better customer traditional Segmentation and look in
experience with their products and depth of it. With identifying the target
marketing tactics. segment it is very important to know the
insights of your target segments, the
Online Marketing phase they are going through etc. So it's
time to move from segmentation to
Technology has transformed insights.
relationships between businesses and
customers Time to go Green
The rules of business have changed. We
used to go to the yellow pages to find It may be a cynical choice by many
information, now we go to the internet. companies, but green awareness is the
We used to read the newspaper that was trend to
delivered to our front porch, now we read come. If even
news on-line. If you're playing the old Wal-Mart is
game, wake up. starting to
promote
Once you have eyeballs you have to keep e c o -
them friendliness,
where will it
The game and trends in marketing and
stop? As
business success have lead to a
there is a lot
significant point of leverage. And that
of revenue
leverage is database. Database is king
had to be shelved
Abhinav Sinha .
09FT-003 Next, they took the help of a young,
British marketing head and created a
Talking about iconic brands, which green marble soap. It was a regular lime
advertisement comes to your mind soap owned by HLL. The team's aim was
which completely revolutionised Indian to get into households with a bang.
branding and marketing scene? I am Extensive research conducted on young
talking about the famous Liril ad, which women and housewives helped them
launched India's most remembered gain an interesting insight:
brand ambassador to date – Karen "It was found that an average Indian
Lunel, rewrote the rules of Indian soap woman who lived with her husband's
marketing , had a jingle which was family had to undergo a lot of pressures
simple but as memorable as Bollywood in her daily life due to her responsiblities
songs and even has waterfalls named towards her family and the household.
after it. It has such an aura and myth that Apparently the only time she had for
people who were not even born when the herself was the 10-15 minutes that she
first Liril ad came on air, keep watching was in the shower. “
the ad on YouTube. This thought provoked the Liril
More than 30 years ago, a team of advertisement created by Alyque
managers was appointed by Jagdish Padamsee , the then Director of
Chopra , the then MD of HLL, to create Lintas,which featured a green swimsuit
freshness soap in premium price clad girl, frolicking enthusiastically
segment that promised fresh mountain under a waterfall. There was no real story
breeze. A brainstorming session steered board for the ad. It was pretty much a one
by the late marketing guru Shunu Sen line brief – girl under a waterfall. The ad
was held to find out what freshness was shot at Khandala and Kodaikanal.
meant: like walking barefoot on marble, The model was Karen Lunel, who was
being sprayed with a jet of water, like icy working as an air hostess for Air India.
blue and the like, they came up with icy The first ad was shot in 1975. Since then,
blue. While test marketing in Nashik and the Liril girl has become a household
Indore, the blue Liril failed and the idea name and been played by famous models
like Anjali Jathar , Pooja Batra , Tara
A
slowdown is a contraction phase long run. These companies continued to
of business cycle and its perceived invest big time in marketing and
impact varies significantly with advertising. The IPL and T20 world cup
the size and economic sector of a saw many brands raising their media
business which requires marketing spending. The Vodafone ZooZoo
managers to make adjustments in their campaign and Reebok 'Hexride' were on
strategies in order to stay both profitable a kill. Complan and Horlicks, Pepsi and
and customer responsive. In economics Coke, Bingo and Lays invested heavily in
a recession is a general slowdown in respective competitive advertising.
economic activity over a sustained
period of time .India defines recession as Another marketing strategy widely
a decline in Gross Domestic Product applied by marketers was reinforcement
(GDP) for two or more consecutive and strengthening of best selling brands.
quarters. A brand must reinforce the attributes
that make it appealing and
Let us analyse what exactly is the differentiating in the eyes of the
challenge faced by a marketing manager customers. In automobile sector Bajaj
during a slowdown. Riding on a negative launched new generation Pulsar, Tata
sentiment consumers are not willing to Motors launched next generation Indica
spend. They are buying less, postponing Vista and Honda launched the new
buying decisions, looking for lucrative Generation City and redesigned its
offers, switching to different brands and Activa scooters brand. FMCG biggies like
different product categories. As a result a HUL and P&G were also upto a similar
degree of uncertainty prevails in game plan. Reckitt & Benckiser is
consumer markets. The crux of a already celebrating for its flagship brand
slowdown is the natural reaction of Dettol as it comes close to becoming a Rs
consumers to re-evaluate every business 100 crore brand. Maggi is running a high
relationship they have. So the real decibel campaign on the occasion of its
challenge faced by a marketer boils down 25th anniversary.
to the dilemma of counter reaction – to
cut down sales and marketing Many companies are reaching out to its
expenditure or to give customers customers by creating new segments and
additional reasons to stay at this critical launching new products. New product
time. launches during a slowdown create more
impact on consumers because not all
Considering Indian perspective the competitors have the capacity to do so.
response was unexpected. When most Therfore there is a relative ease of cutting
companies tightened their belts some through in a less cluttered environment.
traded short term profitability for long
T
he organized snacks category was 2007 with the launch of Bingo and timed
largely dominated by two players it to coincide with the World Cup, of
prior to the year 1997 – The which ITC Foods was an associate
traditional segment (Bhujia, Chana etc) sponsor. While the Indian prospects
by Haldiram and the Western segment were shattered in that World Cup, Bingo
(cheese balls, potato chips etc) along made an almost immediate impact in the
with the Finger snack segment by Frito market with its high level entry which of
Lays. So when ITC decided to foray into course did not go unnoticed in the minds
the highly competitive and dominated of the Indian consumers along with its
market, a large number of eyebrows were competitors, PepsiCo's Frito Lays and
raised Haldiram.
.
Two years on and the sceptics seem to Industry analysts felt that the snacks
have their voices muffled. ITC's Bingo market offered little or almost no
already has a 16% market share in the differentiation and was largely
snacks market while that of its biggest commoditised but this is where Bingo
rival, Frito Lays, has fallen a mind- made its impact felt. Bingo offered its
boggling twenty percent down from 65% products through various shapes and
to 45%. Add to the fact that this textures while being crispier and
spectacular feat has been achieved in a crunchier.
time-span of 18 months is no mean feat.
According to Hemant Malik, ex-head of
According to Ravi Naware, divisional marketing, ITC Foods, "Consumers have
chief executive, ITC Foods, “Success in not had too much choice and our
snacking requires an all-rounded understanding of the Indian consumer
approach and huge preparation. I don't and the Indian palate has helped us
know how many players are there in the develop different offerings."
market with the arsenal to match us. If
Critical Success Factors
there's someone who's got it better than
us, they will succeed, but I doubt it. We're What has made Bingo so popular and a
now aiming for a 25% market share”. marketing success is its effective use of
1. Product 3. Promotion
Since the snacks market consisted of an Bingo was strategically launched around
undifferentiated product offering, ITC the time of the World Cup to cash in on
formed an 8 member research team who the ravenous appetites of cricket lovers
studied various home-made snacks like who loved to snack in between matches.
Bhel, Gol Gappa, Khakra etc. Hence their Also the advertisements along with the
initial offering in the potato chip flavours have a very Indian touch with a
segment consisted of flavours which dose of humour which was the marketing
catered to the eating habits of people strategy of Bingo all along – the cheeky,
from different parts of the country while humorous ads which stay on your mind
finger snacks segment consisted of long after the advertisement has passed.
unique and innovative offerings like the Along with the television
Pakoda inspired Live Wires and Khakra advertisements, Bingo has made its
inspired Mad Angles. presence felt on outdoor hoardings and
the internet. Their website
2. Place www.bingeonbingo.com has been
This is another point where Bingo strikes designed to target the youth and offers a
a major punch. It is leveraging heavily range of functions from downloads,
and effectively into the vast distribution mobile games to even a virtual world!
network of ITC and this has resulted in Their advertising blitzkrieg has seen
Bingo being present even in 'paan' shops. them tie-up even at with the Aerosmith
The distribution network is estimated at rock concert.
around two million outlets and hence 4. Price
penetration has not been a problem for
Bingo. Hence the 360 degree approach The different flavour offerings of Bingo
for ITC Foods – target the grocery outlet are priced at par with Frito-Lays and the
along with the 'paanwaala'. Also, ITC chips come in two standard prices of five
Foods has tie-up with retail giants like and ten rupees. But Bingo's USP is that it
Kishore Biyani's Future Group and this offers 16 variants thus forcing
was the reason why Frito-Lays was taken consumers to take that first bite. With its
off the shelves in Big Bazaar and Food pricing strategy, ITC Foods is targeting
V
ideocon has recently gone company's ecology drive.” It has also
through a complete brand changed it tagline from 'Truly Indian
makeover, clearly visible with Multinational' to 'Experience Change'.
the change in its logo from sturdy steel
With the current portfolio of consumer
crafted V to a fluid green colored V. This
electronics (TVs, DVD players and audio
new brand element was recently
systems) and home appliances
unveiled by Bollywood star Shahrukh
(refrigerators, washing machines and
Khan in LA. To communicate this
Acs), Videocon is also going to foray into
makeover, Videocon has launched new
unchartered territories of mobile
marketing campaigns with two green
handsets, mobile services and D2H
colored animated characters called
services.
Chouw and Mouw which join to form the
new V logo. The choice of green color is Over the last two decades of existence in
deliberated to get into the peppy the Indian market Videocon has been
bandwagon of 'going green' initiatives doing well in entry/middle level
recently adopted by many other segment, but in the premium segment it
organizations. Though this has been far behind LG and Samsung. The
substantiated by their upcoming 5MW company has recorded consistent top
solar PV project in Jodhpur. According line and bottom line growth in the past
to the company's official website, “The few years with net sales standing at Rs
Videocon logo is the heart of the new 10,105 crs and profits of Rs 854 crs for
brand identity. The Fluid lava reflects the the year 2007-08 (Videocon follows Oct-
hand experience of this while browsing initiatives. The buzz is not altogether
through aamirkhan.com wherein mistaken, as the benefits are twofold.
viewer's feedback & reactions (on the Such initiatives helps in the betterment
website) were duly considered and some of society as well as provide the platform
accommodated in the movie after few for reaching out and growing a new set of
weeks of release. In same breadth customers.
rgvzoomin.org and bigb.bigaada.com An example to consider would be project
have been regularly utilized by Mr Shakti by HUL. Armed with micro credit,
Varma & Mr Bachchan for promoting women become HUL direct-to-home
videos, posters and shoots of their distributors of consumer goods in
various movies and getting a first hand remote villages which help them earn a
knowledge of customer preferences, living as well as increase the distribution
likings & disliking. reach of the company manifold. This is a
We must bear in mind that the traffic that classic case of catering profitably to the
flows on to these celebrity blog's/ Bottom Of Pyramid consumers. In this
websites represent the people who are project, the company helps the village
earliest adopters of their products(i.e. women, known as “ Shakti Ammas”,
movies) and plays a very important role develop selling skills and start their own
in success of their product. The hits that small ventures. Project Shakti has
these websites get are in millions and created livelihood opportunities for over
increasing popularity of these forums 45000 rural women and in the process
can be gauged by average reactions in has reached more than 300,000 brand
thousands for each blog they write. This new consumers.
then appears to be a classic case of brand
awareness being utilized in extracting With reference to the same, 'Shakti Vani'
maximum out of a given product program was initiated to educate rural
category to the benefit of all the people about basic health and hygiene
stakeholders and at least possible costs. factors. The Vani program covers areas
including pre and post-natal care, infant
Corporate Social Responsibility nutrition, sanitation, good hygiene
cum Marketing Initiatives practices, and the prevention of common
diseases. By end 2007, the Vani
Corporate Social responsibility is the programme had covered over 50,000
buzz word now a days and companies are villages, reaching out to over 50 million
flocking to have dedicated CSR people.
Initiatives like these should both be Khan promoting his film 'Jane Tu ya
commended as well as portrayed as Jane Na' came alive to interact with the
trend setter for new kind of marketing user on his desktop, walked on the
activities. Rural segment is still a vast website, looked around, knocked on
untapped segment for marketers and uder's screen and then walked back into
techniques such as above would the advertisement click and even danced
definitely give new dimension to the to the tune of the song 'Kabhi Kabhi Aditi
marketers as a whole. Zindagi'. A separate shoot was done only
for this advertisement which had a click-
Viral marketing through rate (CTR) of 2.8%.
The average CTR of banner
Viral marketing is the use of internet to
advertisements is 0.3% and the
create product awareness in multiple
incremental benefit (2.8–0.3) through
connections, creating potentially
viral marketing techniques is evident.
exponential growth. Viral marketing
Songs are the first consumer touch
techniques are increasingly used in
points for most Bollywood films and
promoting bollywood films, few
draw audiences to theatres. Love Story
examples would help to elaborate the
2050 and Jaane Tu had groups on
issue at hand.
Love Story 2050 used the internet to Facebook as well much before their
generate a different buzz around the film releases where the film's pictures and
through some innovative campaigns and posters were put up and the group would
the Akshay Kumar starrer, Singh Is facilitate discussion on the film.
Internet is a good way to advertise even
Kinng partnered with web portal
for those movies that are not primarily
Indiafm.com, wherein through an
targeted at the youth. The general
interactive campaign users could see
audience can be reached through
Kumar doing stunts, also the users could
conventional advertising but if
play a game where they get to be Akshay
producers are looking at a blockbuster
Kumar.
Film advertising now has improved hit then the youth must be engaged too
much and it has reached levels where it and what better way to undergo film
ensures direct interactivity with the advertizing than viral marketing.
audience. Microsoft Advertising rich
media banner did film promotion in
somewhat similar way where Imran
C
ause marketing can be defined as a
strategic and marketing tool that
Cause marketing initiative in India was
links a brand to a social cause
taken by TATA Salt in which they
which have a mutual benefit. American
contributed 10paise per pack of TATA
Express started this type of marketing in
Salt sold in Indian market for CRY (Child
1980’s under the name of CRM in which
Relief and U) and they inspired the
they served a cause of “restoration of
Indian audience with a very catchy
statue of liberty” in New York. And then
tagline “The Desh Ko Arpan
this trend caught up and entered the
Programme” and their initiative was able
Indian market in the year 1990, CRM
to collect 33lakhs for the organization in
basically provided companies a edge to
just 1 month.
fight against their competitors, potential
benefits of Cause marketing were
If I talk about STAR plus, India’s leading
attracting and retaining customers,
General Entertainment Channel
Market differentiation etc.
recently launched ‘Sabki Laadli Bebo’.
Taking this concept a step further, the
Some of the brilliant concepts that have
channel announced its annual CSR
come up in the Indian market and helped
initiative – Project Laadli, in association
both the companies as well as the cause
with KC Mahindra Educational Trust
would be discussed further and even the
Project Nanhi Kali to create awareness
most important thing is that cause
2. After the Kurkure express and the Kingfisher Express, the Bangalore Delhi
Rajdhani Express has also been branded. Which company is sponsoring the
train?
5. In 1997, the TATAs sold Lakme to HLL and acquired Britain based
Littlewoods chain. What did it later re emerge as?
6. Which corporate entity has come up with the punchline 'The edge is
efficiency'?
9. Which famous car giant originally started off with textile business?
10. In Taiwan, Pepsi-Cola made a very grave error (no pun intended) with their
slogan 'Come alive with the Pepsi generation'. The catch phrase was
translated a little too literally in Taiwanese, and ended up saying what?
ANSWERS
1. Pepsi 2. Airtel Bangalore Delhi Rajdhani Express 3. Metro Shoes 4. FaceBook 5. Westside 6. Bombay Stock Exchange
7. This magazine has been coming with no Ads for the last 3 decades and has been placed in the Limca Book of Records.
8. Timex 9. Toyota 10. 'Pepsi will bring your ancestors back from the dead.’