SlideShare uma empresa Scribd logo
1 de 35
Baixar para ler offline
The marksman august 2011
EDITOR‘S DESK
AUGUST 2011


Interface-the Marketing Club of SIMSR would like to present to you the 3rd issue of ―The Marks-
man‖. First of all we would like to thank all for an overwhelming response to our magazine.

In this issue, we focus our attention to ‗Affiliate Marketing‘- an e-commerce version of the tradi-
tional agent/referral fee sales channel concept. Affiliate Marketing has made businesses millions
and ordinary people millionaires. Our cover story gives a comprehensive picture of the process
and the evolution of affiliate marketing along with the challenges faced by it.

Most of us are by now well versed with the Kotlers and the Kellers of the world, the best prac-
tice cases, the Nike‘s and the Intel‘s. Its time to get real. We live in country of mass social and
cultural diversity, and what works in one country may or may not work in another. Hence, with
this issue, we endeavour to bring about a little awareness and knowledge about the significant In-
dia, ―The Rural India.‖. In our sections of brands, this time around we focus on a irrepressible,
undeniable brand, ―Rajnikanth!‖ (Hope you don‘t MIND IT!)

Our regular section of bookworm section, tweets and Buzz will appeal to all. We would also like
to congratulate the winner of our featured articles, Sharad Deep! We also have a special Fac-
ulty section for this issue, where an article by Ms. Babita and Mr. Saurav, professors at Punjabi
University, has been featured.

We understand that ―knowledge‖ cannot be contained, and we would only be foolhardy to be-
lieve that we could encompass all of it in one go. Hence, we would be featuring 6 of the notewor-
thy articles received, on our facebook page (facebook.com/simsr.interface) and we promise you
they will be well worth your time!

A gold mine of knowledge awaits our readers!


Cheers!!
Team –Marksman




AUGUST 2011                                                                                01
COVER STORY
    AFFILIATE MARKETING…………………………………………………………….……....03

    SECONDARY STORY
    SOCIAL MEDIA– LISTENING OVER COMMUNICATION..……………...……….……….06

    ALL ABOUT BRANDS
    THE UTOPIAN BRAND– RAJNIKANTH..………………………………………...……….08

    FEATURED ARTICLES
    BRANDING PARADIGM FOR THE BOTTOM OF THE PYRAMID
                               Sharad Deep, MDI Gurgaon……………... ……..…..11

    TWO SIDES OF A COIN: Lehar iron chusti for Rural markets?
               Pavan Kumar C (IIFT, Delhi),Varun Tejwani (SIBM Pune)……………….…..14

    THE BURGEONING RURAL MARKET
             Asim Kumar Verma, Kritika Chandra (IMT Nagpur)…………………..19


.
    MIGRATION AND REVERSE MIGRATION-URBAN TO RURAL
              Ms. Babita Singla, Mr. Saurav Bansal (Punjabi University)..………………….…21

    REGULARS
    BOOKWORM ………………………………………………………………….………….....26

    TETE-A-TETE………………………………………………………………………………….27

    REWIND ………………………………………...………………………...……………….…29

    TWEETS ………………………………………………………………………..………….…..30

    BUZZ ……………………………………………………………………...…………………...32


THE MARKSMAN                                                                       02
AFFILIATE MARKETING

With the advent of e-commerce new forms of marketing have emerged. Here we delve into intriguing
world of Affiliate Marketing. We feel that being an affiliate is a bit like being a commissioned sales person
online….! Read on to find more about it.


                                                       two years before the Amazon Associate Pro-
WHAT‘S AFFILIATE MARKETING?                            gram was launched. Adult websites used affiliate
Affiliate Marketing typically refers to an elec-       marketing methods to promote their busi-
tronic commerce version of the traditional             nesses even before CDNow. Now almost
agent/referral fee sales channel concept. It is        every large e-commerce site has some sort of
a web-based marketing practice in which a busi-        affiliate program.
ness rewards one or more affiliates for each
visitor or customer brought about by the affili-
ate's marketing efforts. An e-commerce affiliate
is a website which links back to an e-commerce
site with the goal of making a commission for
referred sales. Affiliate marketing is a narrower
part of online (or internet) marketing.

The compensation or commission that an affili-
ate receives may be based on a certain value
for every exposure, visit (pay per click), new
                                                       HOW DOES IT WORK?
client (pay per lead), sale which is usually a per-
                                                       Affiliate marketing network includes three-parts
centage of the item sold (pay per sale or reve-
                                                       cooperation which involves a merchant (or he
nue share) or it may be a combination of any of
                                                       is often referred as an advertiser, a brand or a
these. It is a modern variation of the practice of
                                                       seller), an affiliate himself (or a publisher) and a
paying finder's-fees for the introduction of new
                                                       customer. Affiliate marketing works step-by-
clients to a business.
                                                       step. An affiliate partner signs up to advertise
HOW DID IT EVOLVE?                                     the merchant's goods or services in order to
In the mid-90's Amazon.com pioneered the               direct a customer to the relevant web page
idea by enabling Web site owners to link to            which contains the information about adver-
their books and earn a commission if someone           tised goods or services. For every customer an
clicks over from their Web site to Amazon and          affiliate gets affiliate marketing commission.
buys the book.                                Each affiliate is given a unique link to paste into
The original idea on the "above-the-ground his or her website, so the vendor can track
Internet" was introduced by CDNow in 1994,    which affiliate is responsible for generating a


AUGUST 2011                                                                                           03
Sale. An additional benefit of affiliate marketing       affiliate program, production expenses
is embodied in the opportunity to create sub-            are no longer an issue as the product has
affiliate network (2-tier affiliate marketing). It       been developed and proven to be good.
means that every affiliate is able to attract            Best of all, this has all come out of the
more partners to work for him or her and                 merchant‘s accounts and not yours.
bring additional percentage from every                  Do not need a lot of money to set
customer's action. In such a way, the affiliate          up- All anyone will require is a desk, lap-
marketing sites develop a large program that             top or computer, internet connection in
envelops many people all over the world.                 addition to word processing software in
AFFILIATE INTERNET MARKETERS                             order to get going.
As e-commerce continues to evolve, e-                   Costs Involved- Generally it is usually
commerce affiliates are no longer restricted to          totally free to join an affiliate program,




website owners. They also promote the other              and most the set up costs and shipment
business by writing articles for blogs, making           costs will be met by the particular mer-
simple websites that provide consumers infor-            chant whose products you are advertis-
mation, and even making referral videos and              ing. Plus, as you do not need anywhere
posting them on Youtube!                                 to store goods, this is actually another
Affiliate marketers don't necessarily have to            reason for joining an affiliate program.
be affiliate marketers specifically. Sometimes          Options- There are usually 1000′ s of
such marketers can be the e-commerce web                 products and services that a person can
site that actually sells the products and ser-           choose from. So finding the correct
vices.                                                   products for possibly a site you have cur-
WHY AFFILIATE MARKETING?                                 rently or maybe one in which you are
      No Development Costs- With a good                 planning to create is immense.


THE MARKSMAN                                                                                 04
     No need to have a Merchants Ac-
      count- As an affiliate marketer, the mer-          CHALLENGES….
      chant you are selling the product or ser-          Revenue Generation Time
      vice to will carry all costs, as well as han-      In spite of its availability, affiliate marketing
      dle the processing of all payments. So             might require some special attention for the
      you never have to be concerned about               first time before it starts working and bringing
      any possible charge backs, fraudulent              some income automatically.
      purchases or losing your own merchant              Spamming
      account completely as an affiliate. Plus,          In its early days many internet users held nega-
      no longer will you be worried with col-            tive opinions of affiliate marketing due to the
      lecting and storing names and addresses            tendency of affiliates to use spam to promote
      of customers along with their credit card          the programs in which they were enrolled. As
      information, as this will be all                             affiliate marketing has matured many
      done by the merchant who you Something to                    affiliate merchants have refined their
      are affiliated to.                    ponder over….. terms and conditions to prohibit affili-
     No middlemen- The advan-                  "I want to add ates from spamming. Many affiliates
      tage of this method of market- some affiliates to            have converted from sending email
      ing is that it cuts out the mid- my website."                spam to creating large volumes of
      dleman but it does require the                               autogenerated webpages each de-
      affiliates to have a high degree          "I want to add voted to different niche keywords as
      of trust in the software and some affiliate                  a way of SEOing their sites with the
      people behind the e-commerce          products to my         search engines. This is sometimes re-
      web site in question.                 website."              ferred to as spamming the search en-
WHERE IS IT BEING USED?                                            gine results.
Some e-commerce sites, such as                  "I want to add
                                            some affiliate links
Amazon.com run their own affiliate                                 Click Fraud
programs while other e-commerce                                    Click fraud is a type of Internet crime
vendors use third party services provided by             that occurs in pay per click online advertising
intermediaries like CommissionJunction.com,              when a person, automated script or computer
and LinkShare.com to track traffic or sales that         program imitates a legitimate user of a web
are referred from affiliates. Some businesses            browser clicking on an ad, for the purpose of
owe much of their growth and success to this             generating a charge per click without having
marketing technique.                                     actual interest in the target of the ad's link.
There are different technological solutions              Click fraud is the subject of some controversy
available for merchants who are considering              and increasing litigation due to the advertising
adding an affiliate strategy to their online sales       networks being a key beneficiary of the fraud.
channel. Some types of affiliate management
solutions include: standalone software, hosted
services, shopping carts with affiliate features,
and third party affiliate networks.

    AUGUST 2011                                                                                    05
Social media - listening over communication
                                 End of one sided communication

     All readers would at least be having a facebook or twitter profile, moreover it would have been

      reviewed by you at least once in a day. This is reach & voltage of media called Social Media.

Social Media as the name suggests is media with social interaction. This medium‘s reach is
growing by leaps & bounds. There are many facets which is intriguing the marketer about
this platform. Two prominent aspects are –
      A place to communicate about brand, and features which it offers.
      A place to listen to consumers
The later aspect is been overlooked by many brands currently. Marketers are known for
talking, not listening. Many are forgetting that it provides great opportunity to learn at a
grassroots level what people really think about a brand, products or services. Indeed, listen-
ing to the groundswell of consumer-generated content is the new marketing. This does not
imply that tools like focus groups, user surveys or other research instruments would be
passé but the new medium would provide better understanding of consumer behavior as
this space provides unbiased and free opinions.
Some of key characteristics of listening -
    Why listen -
    People are using various means like
        Facebook post, Twitter‘s tweet or
        various blog posts‘ blogging about
        their experience positive or nega-
        tive with a product or service.
    The conversations are influencing in
        multifold. There is avalanche effect
        due to peer influences.
    If negative reviews or comments are
        not handled with care in nascent
        stage it might lead to complete dilu-
        tion of brand.
    What to listen for -
            Share of voice - This is a measurement of how much and to what degree people
                are talking about you. This will help in understanding the buzz about brand
                and its competitors.




THE MARKSMAN                                                                                           06
Social media listening over communication


       Tone of voice - This is a gauge of whether the conversation is largely positive or nega-
         tive and is often referred to as "sentiment analysis." If the sentiment is positive, re-
         ward those who speak well of you. That will presumably encourage them to do
         even more. If the tone is largely negative, it is incumbent upon you to get to the
         root of the problem, if, in fact, a problem exists. Fix the problem and the tone will
         likely change. If it's misinformation that's being spread, you must engage the critics
         and correct their misunderstanding.



         Trends over time - It is important to monitor both the above metrics, over the course
            of time in order to see the effects of advertising, marketing and PR.
 How to listen -
 This listening can be done via using free tools like ‗Social Mention‘ or ‗RSS feeds‘ etc or paid
    tools like ‗Radian 6‘ or ‗SM2‘. There can be manual finding which can be strenuous but very
    fruitful as this can help in overcoming the flaws of technical tools.



                                                                         e
                                                       ord to Ignore th
                                    at , One Can‘t Aff
                     This sums up th                  re is a convers
                                                                      ation
                                     A ny Longer, the                  IN IT.
                      Conversation                   PARTICIPATE
                                     y brands‘ honor
                     happening in an




AUGUST 2011                                                                                07
The Utopian Brand: RAJNIKANTH


―Yen Vazhi, Tani Vazhi!‖                              tional. Anyone who has encountered PLCs in the
The above quote is in Tamil. Understandably,          course of study or business would know that the
they mean nothing to a vast majority of Indi-         curves are S-shaped, the reason why these curves
ans, who have absolutely no knowledge of the          are called S-curves. There is an inception followed
language. However if one mentions these four          by a rapid growth phase, which is followed by a
words to someone from                                     period of stagnant growth, which then culmi-
Tamil Nadu, in all prob-                                  nates in decline. In Rajni‘s case, there have
ability the person would                                  been periods of stagnant growth, but decline
break into a wide smile.                                  has never crossed his path. The minor hiccups
The emergence of the im-                                  that have come his way may be treated as
age in the person‘s mind,                                 small kinks in his progress curve, but they
of a young man challenging                                have never been able to dent his upward
the evil intentions of a                                  climb. This is because here is a brand that
femme fatale would be the                                 competes not with other brands in the mar-
reason behind the smile. .                                ket, but with itself. Each successive film
After all, when the words                                 grosses more than
have been mouthed by the                                  the previous film,
greatest Tamil actor of all time in his 150th film,   which has lead film re-
which has been one of the biggest blockbusters        viewers and critics to
of his career, there is something to smile            rightly mention: ―Only
about. He is the only person in the world, his        a Rajnikant film can
fans believe, who can say ―My Way is the              break the record of a
Unique Way‖, which is what the above words            Rajnikant film‖.
mean, in, well, his unique way. When someone
aged 60 years, acts as leading man in a movie,        Not only is he a house-
which, in this day and age is able to gross 216       hold name in Tamil Nadu, but also in neighbour-
crores in the first week itself, there must be        ing Kerala, Andhra Pradesh and Karnataka. The
something special about him. For his viewers,         entire country connects to his name; associating
his audience he is ―Thalaivar‖ or God. For his        him with his uniquely styled dialogues and man-
directors, his producers, his co-stars he is the      nerisms. Rajni can arguably be considered as the
Utopian Brand- one that repositions, reinvents        only Indian actor having a substantial Japanese
and ensures over-normal returns. His name is          base, which was built after his film Muthu (1995)
Rajnikanth.                                           was dubbed and released in Japan. Films namely
RAJNI: The Brand                                      Baba (2002), Chandramukhi (2005) and Sivaji
The journey of this brand called Rajni, what we       (2007) were also released in Japan, which greatly
might call in marketing jargon as PLC or Prod-        consolidated his position as a leading Asian star.
uct Life Cycle, has been extremely unconven-

  THE MARKSMAN                                                                                   08
The Utopian Brand: RAJNIKANTH

The Indian Prime Minister Dr. Manmohan              recall that MGR’s ill health and subsequent
Singh, on a visit to Japan in 2006, acknowl-        death unleashed a flurry of death, suicide and
edged the role of Muthu in forging positive re-     chaos all over Tamil Nadu. But Rajni’s popu-
lations between the two nations. Infact, Rajni      larity seems to surpass that of all his three
received a remuneration of 26 crores for his        predecessors. In this respect one may recall the
film Sivaji, which catapulted him to the posi-      movie
tion of 2nd highest paid star in                                             Thalapathy, in which
Asia after Jackie Chan. Rajni’s                                              Rajnikanth co-starred
2005 film Chandramukhi                                                       with the Malayalam
which is to date the longest                                                 superstar Manmooty.
running Tamil film, having                                                   The     film     initially
run at the theatres for 800                                                  showed        Rajnikanth
days, was dubbed in German                                                   getting killed trying to
and released in all German-                                                  protect his friend Man-
speaking nations.                                                            mooty, who later
The way his latest film Enthi-                                               takes revenge for his
ran is grossing, it is expected                                              death. However, when
that the curve would bend                                                    this movie was re-
higher still. For artistes who have been in the     leased in Tamil Nadu, there was widespread
industry for 35 years, achieving this trend is an   discontentment, and two or three screens
aspiration. For Rajni this has been a reality:      were burned. The producers had to later re-
having acted in over 150 films in Tamil, Kan-       make the film, with Rajnikant surviving, and
nada, Malayalam, Telegu, Hindi and even Ben-        Manmooty dying, and the former taking re-
gali, over a period of 35 years, his popularity     venge.
and his saleability refuses to wane. Not to for-    All this cannot be attributed to screen pres-
get the Hollywood movie Bloodstone produced         ence alone. This calls for a ―product analysis‖.
by Ashok Amritraj in 1988, which featured
him in a supporting act. In 2007, Asia week         RAJNI: ―The Product‖
named Rajni as one of the most influential per-     To understand the adulation that Rajni com-
sons in South Asia.                                 mands, we should first ascertain who the per-
All these facts make one wonder, how did the        son is, what his origins are and how he
Rajni phenomenon come about and what were           reached the pinnacle of Tamil cinema. In other
the reasons behind it. Fan frenzy is not new to     words, in order to fully appreciate Rajni as a
the Tamil industry. Sivaji Ganesan, Gemini          person, one should know the story of how a
Ganesan and more prominently MGR were               bus conductor named Sivaji Rao Gaekwad be-
one of the greatest actors who enjoyed great        came the superstar Rajni.
popularity levels among the masses. One may         The point worth mentioning first is that the
                                                    biggest superstar of the Tamil film industry is a

AUGUST 2011                                                                                     09
The Utopian Brand: RAJNIKANTH

Maharashtrian. He was born in Bangalore, and          Kaveri water sharing verdict, protesting
was the youngest child of his parents. His            against which he undertook a fast have also
mother died when he was aged 5 years, and             won him a lot of respect in Tamil Nadu. The
what followed was an impoverished childhood.          great man that he is, he has also thanked the
To make ends meet, he served as a coolie in his       Karnataka Govt, and the Kannada film indus-
community. After some basic education, he             try for their receptiveness, when his 2008
joined the Bangalore Transport Service as a bus       film Kuselan was released there.
conductor. His passion for acting was noticed
and deeply encouraged by his friend and co-           CONCLUSION
worker Raj Bahadur. It was with his help that         The intent behind this article is to showcase
Rajni came to Chennai, to try his luck at acting,     a brand which has defied all the theories
and subsequently joined the Madras Film Insti-        that brands generally adhere to. The brand
tute. It was there that one day, the renowned         has repositioned itself from time to time.
director K. Balachander noticed him and casted        Any marketer would love to possess a
him in his first Tamil movie Apoorva Raagangal:       brand in which he would be comfortable to
The Beautiful Raga (1975). The role however           invest a figure around 160 crores, since at
was that of a cancer patient, with low screen         the back of his mind he knows that the
presence.                                             brand is so strong that it will break-even in
                                                      the first week itself, and the brand goes a
RAJNI: ―The value-add‖                                step further and breaks even in the first day
One of the major contributors to the immense          itself, quoting Enthiran figures. Nothing is
popularity of Rajnikanth is his humility and pious-   more profitable than a brand that will sur-
ness. Ego and starry airs are unknown to Rajni-       prise you every time, as Rajni once men-
kant. During breaks he hardly ever rushes to his      tioned in an interview: ―Yesterday I was a
air-conditioned makeup room. Instead, he pre-         conductor, today I'm a star, tomorrow what
fers to sleep on the sets, even without a pillow,     I'll be, only He knows!"
merely covering his eyes with a wet cloth. Eve-       I am one of his biggest fans, the reason why
ryone in the film unit from the spot boy to the       I have written about him. When a Ma-
director, share an equal rapport with Rajni,          harashtrian goes over to Chennai, becomes
which goes on to show his down-to-earth atti-         the greatest star the Tamil film industry has
tude. He never comes to functions with a reti-        ever produced and inspires a Bengali to
nue behind him and even prefers to drive his          write about him, there must be something
own car. He is known to be a very religious per-      about him. That, is Rajnikanth for you.
son as well. Apart from that, his philanthropic
activates have also contributed a lot towards en-
dearing him to his audience. His stand on public
welfare issues such as the Karnataka-Tamil Nadu


THE MARKSMAN                                                                                10
Branding Paradigm for the Bottom of Pyra-
                 mid Market
                                                       -Sharad Deep, MDI Gurgaon
                Introduction
                The rural population in India accounts for 74.3 percent of the total population.
                With increasing consumption patterns in the rural areas, all marketing compa-
                nies have realized the importance of rural marketing in the last decade or so. A
simple example demonstrating




                       Figure 1: Rural Areas - Increase in usage from 2001-02 to 2009-10

this can be given by highlighting the Nirma vs. HUL scenario of the 1980s when Nirma took a
huge market share from HUL‘s Surf by playing on lowest-priced brand factor. In response, HUL
came up with segmentation strategy to win back part of its market share. Thus, HUL learned the
hard way that different brands need to be created for different segments of the society.
With diverse cultures, classes, creeds, languages and festivals rural India can be further divided
into regional segments. These segments tell us the stereotypes that could be found in rural
towns and villages.




                       Figure 2: Rural India - Different People, Different Culture



AUGUST 2011                                                                                11
Branding paradigm for BoP markets




                                  Figure 3: Branding Paradigm

Prof Rajagopal has given this branding paradigm for BoP markets. He says that brand passion is de-
rived from behavioural factors namely personality, image, reputation and trust (PIRT) as well as
marketing mix of the product. Because of this brand passion, there is a consumer pull effect mak-
ing the brand more tensile. Also, since rural consumer is slow in accepting a new brand, Prof Ra-
jagopal says that a new brand will face sluggishness in the beginning and later become strong when
loyalty increases. He further says that the aggregate buying power of BoP market is very large al-
though per capita sales may be lower.
Whenever a company wants to penetrate a BoP market, it needs to keep the following things in
mind: consumption needs, lifestyle and societal indicators. In order to inculcate brand loyalty, BoP
brands need to focus on two things: low price strategies and standardized products. The reason
being that the rural segment is highly price sensitive and also that they are not able to differentiate
between many products. We now look at each step of the above mapping to understand the im-
plications of branding at each level:
1. Knowing the Consumer
The segmentation shown in Figure 2 tells firms that they need to adopt multi-brand strategy in or-
der to cater to different consumer needs of different rural markets. This would be useful in fight-
ing off the huge unorganized sector which has monopolized the Indian rural market. Firms need to
conduct periodical surveys so as to identify the changing needs of rural consumers as they move
from Innovators to Early Adopters to Early Majority because at each stage, the behaviour changes.

THE MARKSMAN                                                                                   11
2. Awareness
At this stage, the consumer becomes aware of the brand. Firms need to follow ag-
gressive branding – BoP brand strategy requires an attacking sales force, intensive advertisements and
sales schemes. Rural people can be exposed to a new brand through the following media:




 3. Information: Firms should extend the product line enveloping the mass market segments in or-
 der to provide more shelf space to brands and narrow down competition to emerge as brand lead-
 ers. In these markets brand equity is determined by the consumers in reference to perceived use
 value and value for money measures.
4. Inquiry: A consumer wants four things from a brand:
1. Affordability i.e. price advantage
2. Social status i.e. if his reference group will approve of the brand or not
3. Perceived Use value i.e. in what ways can he use the product
4. Quality confidence i.e. if the brand will serve him in long term or not
5. Consideration: For a brand to enter the consideration set of a consumer, it has to exhibit cer-
tain favourable attributes like packaging, taste, smell, appearance, ingredients. The uniqueness of the
brand in these aspects is desirable here.
6. Purchase: In order to entice the consumer BoP brands need to have better packaging. Rural peo-
ple want ease of storing a package more than urban people. Moreover, keeping the various segments
and their distinguishing characteristics (Figure 2) in mind, the sales people need to modify their selling
techniques.
 7. Enjoyment & Advocacy: Coca-Cola recently declared that it will sell its products in rural area
where there is severe power shortages by using eKoCool – a solar energy driven chest cooler. Thus,
Coca-cola is solving two purposes for rural people:
        It is providing a source which can keep things cold
        The solar energy can help light up their homes.
By satisfying their basic convenience need of electricity, Coca-Cola has devised a win-win situation
wherein it is doing CSR activity as well as enhancing its brand value.

So, to conclude the discussion we can say that firms need to follow the above stated paradigm in or-
der to succeed in the Indian rural markets keeping in mind the cultural diversity and propensity to
spend of the rural consumers.

AUGUST 2011                                                                                       13
TWO SIDES OF A COIN

                  Pepsi Launches: "Lehar Iron Chusti, a fortified
                  iron snack” for rural markets. Will it
                  work?                                                                 FOR
                                     Pranav Kumar C, IIFT Delhi

                   Sangamjagalamudi, a village around 15 kms from Tenali town in Guntur district
                   of Andhra Pradesh was in the news recently for the launch of a product which
                   attracted attention from National media. More than 100 men, women and chil-
dren gathered recently under a canopy on a narrow street to watch a promotional film
from PepsiCo Inc. In the film, a teenage girl sits in her bedroom, tired and listless. Based on her
symptoms—fatigue, breathlessness and an inability to concentrate on studies—her mother con-
cludes she is anemic. She explains what anemia is, how to look for it (examine your tongue and
the whites of your nails and eyes) and that iron-rich foods such as spinach, chicken liver, lentils
and a squeeze of lemon can help.

Then the pitch: Also helpful are two new snack foods from PepsiCo fortified with an iron sup-
plement. One is a cookie; the other is like a cheese puff.

Composition: Lehar Iron Chusti is an extruded snack and a sweet biscuit that are richly fortified
by Iron. The products are made with wholesome local ingredients like grains, peanuts and jaggery.
To sell the cookies and puffs, PepsiCo has hired a woman in each of the 84 villages targeted in
Andhra Pradesh. The women go house to house each week to pitch the health message and are
accompanied by a sales agent armed with the products.The project in India is part of a broader
global push by PepsiCo into healthier
snacks and beverages around the globe.
The small, single-serving fortified-snack
packs are designed for low-income
emerging-market customers, selling for
two rupees, or about four cents.

The Target Audience- Women be-
tween the ages of 15-49, 55% of whom
are suffering from anemia.

The objective is clear: to test-market
affordable products that fulfill a health
need of bottom of the pyramid (BOP) A billboard at a market near Athota, India, advertises
consumers. The potential market size: snacks under PepsiCo's Lehar Iron Chusti brand.
over a billion consumers. The bulk of
PepsiCo's $60 billion in annual revenue still comes from products such as Pepsi-Cola and Lay's

THE MARKSMAN                                                                                14
TWO SIDES OF A COIN


                                                                                              FOR
potato chips that the company describes as "fun for you.'' But it launched a
Global Nutrition Group last year and Chief Executive Indra Nooyi aims to more
than double revenue from "good for you'' products to $30 billion by 2020. India will be the first
country in the PepsiCo system to target the value segment
with multiple products. In line with this they are looking for
next billion consumers at the bottom of the pyramid. What are PepsiCo is adopting a twin
the gaps? What are the offerings? And what's the business pronged strategy of Vertical
model required to reach these consumers? Late management movement and selling them at
guru C K Prahalad brought the fortune at the bottom of the Cheaper Price Points which is
pyramid to the fore and many companies, primarily consumer likely to be a success in long
goods marketers, have been looking at ways to make inroads run.
into this market.

Outside of India, Pepsi has ambitions for other healthy foods.
In China, the company recently began rolling out "Quaker Congee,'' an oatmeal variant of the rice
-based breakfast staple. PepsiCo is looking at launching a new beverage for some Latin American
markets that combines fruit, oats and dairy. It also says it's trying to identify nutrient-dense staple
crops in sub-Saharan Africa that can be used in locally produced snacks.

Will it work?

PepsiCo is adopting a twin pronged strategy of Vertical movement and selling them at Cheaper
Price Points which is likely to be a success in long run.

GOING VERTICAL:
NourishCo, PepsiCo's vertical in partnership with Tata Global Beverages, has just rolled out its
first product, a lemon-flavoured glucose-based drink, called Gluco Plus, in Maharashtra. It is
priced at Rs 5. An innovation vertical has launched biscuits and snacks priced at 2 under the Le-
har Iron Chusti brand. This line-up of healthy foods is targeted at women under 'Project Asha',
PepsiCo's codename for Nooyi-commissioned plan to develop low-priced nutritional foods for
the poor.
While separate operations, sales and marketing teams have been set up for the verticals, Pep-
siCo has further split its go-to-market (distribution) model into three divisions. There's a pre-
mium arm for distributing Tropicana juices, Gatorade sports drinks and Quaker oats; a mid-rung
one for aerated drinks like Pepsi and Slice and snacks like Kurkure and Lays; and a division cater-
ing to mass products like Lehar Iron Chusti. This strategy to set dedicated sales teams helps in
Communication and marketing for these products in a different way yields significant flexibility


AUGUST 2011                                                                                     15
TWO SIDES OF A COIN


when it comes to areas like packaging, as the firm can write labels in Telugu, a           FOR
language which is widely-spoken in Andhra Pradesh, on Lehar Iron Chusti. In
short they are acting like local players, but offer products that don't compromise on taste or
quality."


CHEAPER PRICE POINTS
This involves attempting to provide goods appropriate for the 330m potential buyers moving
from the "C"-level demographic into the more affluent "B"-level socioeconomic category. Low-
margin products like Iron Chusti will obviously not be profitable in the beginning, but PepsiCo is
hoping that the products will achieve scale in about 24 months. The success of PepsiCo's core
business of snacks, such as Kurkure and Cheetos at Rs 5 was a resounding success. They are the
fastest growing among PepsiCo's foods arm and contribute 45-50% to the division's foods sales.

More broadly, as three-quarters of PepsiCo's customer base buys goods both from its food and
beverage stable, there are considerable possibilities for incremental growth, and hence, Lehar
Iron Chusti provides ample of growth opportunities for the company in the long run.




THE MARKSMAN                                                                               16
TWO SIDES OF A COIN

                         Pepsi Launches: "Lehar Iron Chusti, a
                         fortified iron snack” for rural mar-                         AGAIN
                         kets. Will it work?                                               ST
                                             -Varun Tejwani,SIBM Pune

                          Another blunder in the making: PepsiCo‘s Iron Chusti
                          It has been reiterated in books, journals, magazines and by management
                          gurus all across India that the rural consumer looks for value and not for
                          price. Almost all major FMCG companies in their foray into the rural
                          market have forgotten this important lesson in rural marketing. They
have more often than not introduced small SKUs to capitalize on price points. Reduction in price
with reduction in quantity or size does not increase value for the rural consumer. Hence, almost
all of them have failed to capitalize on the growth of the rural market.
Lately, I was surprised to see that PepsiCo is foraying into the rural market with its Iron Chusti
snacks and cookies. To address the problem of iron deficiency in the rural India, PepsiCo India
inspired by the global PepsiCo head Indra Nooyi in their ―noble‖ mission to transform into a
―good for you‖ products organization has launched these iron supplementing snacks and biscuits.
The brilliant minds at PepsiCo have found a market gap and decided to address the need profita-
bly.
However, they have gone wrong in understanding the rural consumer. They believe that they are
delivering value to the rural consumer. My question to them is- What is value to a rural con-
sumer? To be more precise, what does a rural con-
sumer look for in a snack? Is it protein fortification,
glucose content, vitamins or is it something else? If
he doesn‘t look for all these, then no amount of
communication or convincing can lure him into buy-
ing it.

Let‘s take the example of Parle G. Parle G does not
sell in the rural market because of the glucose con-
tent or ―G mane genius‖. The rural consumer does
not look for glucose content or mental benefits in a
biscuit. It sells primarily because of the quantity it
offers and at the price that it offers that quantity. ―G mane Genius‖ may work really well in the
urban market but not in the rural market.
Coming back to value in a snack for the rural consumer, value merely stands for 2 things in the
rural market:

    Quantity (filling ability of the snack)
    Taste


AUGUST 2011                                                                                  17
TWO SIDES OF A COIN

                                                                                    AGAINST

Quantity: Compare 100 grams of Parle G to 24 grams of
Iron Chusti biscuit and compare 30 grams of Haldirams to
10 grams of Iron Chusti snack- it is quite clear that value is
not delivered.




Taste: Rural consumer still finds it difficult to adapt to the
                                            taste of a Kurkure
                                            which essentially uses all Indian spices. He is happy
                                            with the tastes of Haldirams Namkeens and Lehar
                                            Moong Dal because the origin of these namkeens is
                                            local. How do you expect the same consumers to
                                            like snacks the taste of which resembles cheese
                                            puffs?




Lastly, if a rural consumer was looking to cure his/her
condition of anemia, he/she would be advised by the doc-
tor to eat spinach like Popeye and not to get 7 milligrams
of iron from Iron Chusti snacks. In Rs. 5 of spinach, one
can get a month‘s dosage of iron where as Rs. 5 of Iron
Chusti can‘t even supply the daily requirement of iron.
Hence PepsiCo has failed to deliver on all counts this




THE MARKSMAN                                                                                18
THE BURGEONING RURAL MARKET
                                                      Asim Kumar Verma, Kritika Chandra (IMT Nagpur)


                                   The Indian economy which was once dependent on foreign
                                   aids and supplies is growing with a fast pace of 8 %. The huge In-
                                   dian population which was once a curse for the whole nation has
                                   given immense opportunities for all the marketers of the nation.
The rural market that was untouched till recent years has become lucrative and is now attracting ma-
jor companies like ITC, HUL and Godrej which are investing huge funds to tap the market. The
whitepaper published by CII-Technopak estimated the growth of the rural market at 25% a year with
the size of the market standing at US$425 billion in the year 2010-11 which was US$220 billion in
2004.

The Union Budget of 2010-11 also increased the fund allocation of National Rural Employment Guar-
antee Act to US$ 8.71 which says a lot about the government focus to boost the rural economy. The
Indian rural market has given a unique chance to
marketers to enhance its sales and spread it
wings to few areas that were inaccessible few
years back.
Hindustan Unilever Ltd which started ―Shakti‖,
its rural initiative in the year 2001 has been able
to reach 80000 villages in 18 states. The re-
sponse of the people in these villages has been
overwhelming for the company. The recent re-
port released by Nielsen India said that the de-
mand of personal care products grew at faster
rate in rural market than the urban market.

                                                         Fig 1. A Typical Rural Haat
Insight into Rural Customers
The intensified competition and moreover stagnant phase of growth has forced companies to pene-
trate the urban market. The improved lifestyle and rise in purchasing power of the rural consumer
have further encouraged the markets. The breaking up of joint families into nuclear families has re-
sulted in demand of consumer durables like TV, refrigerator and washing machines. Though most of
the products released by companies in the rural market have been the original version but in most of
the instances they have been forced to adjust them according to the needs of the rural consumer.
The unique uses developed by the consumers in the villages have also forced them to do the same.
The popular black hair dye of Godrej was being used by the villagers in Raipur to polish their cattle so
that they could fetch higher prices in the cattle market. In another situation the lamps ignited by
kerosene were comfortably adjusted to use mosquito repellant mat Good Knight.


AUGUST 2011                                                                                    19
Even the consumer durable like washing machine has been put to use for unintended usages. In
some regions of Punjab and Haryana, it was used to churn the buttermilk to make lassi.

Winning Strategies
The company focusing on the rural market should
tweak its four P‘s of marketing to win the market share.
The rural market prefers simple and easy product with
core benefits speaking volumes about the product. The
packaging needs to be convenient and should be dura-
ble to make it suitable for long distances. Sachets and
smaller stock keeping units (SKUs) have really revolu-
tionized the local rural market. The consumer durable
goods should be easy to use and instructions should be
well explained in the local language. LG was quick to
analyze it and launched Sampoorna television with
Devanagari script and ability to catch weak signals,
which reaped huge success for the company.
                                                  Fig 2. Washing Machine being used to make Lassi
The pricing holds an important key among the four P‘s for a rural market because the rural con-
sumers are considered to be the most price sensitive. Each and every customer evaluates the
price of the product with the value derived from it. Some of the major companies like HUL,
Godrej and Tata reduced its stock keeping units to cater to the market. Godrej introduced its
leading soap brand Cinthol in 50 gram packs with a price of Rs. 4-5 and HUL launched Lux in 25
grams pack especially for the markets of Bihar and UP.

The distribution channels of the company should be made robust to tap the rural market. The
distributor should be willing to go till the last mile to deliver the product to the customers. The
Kosi floods of 2008 in Bihar had jeopardized the distribution channel of the major companies giv-
ing a unique opportunity to the local bakery & biscuit manufacturers. To avoid such situations the
companies should have local warehouses and try to decentralize the distribution as much as pos-
sible. Many companies have been able to build penetrative distribution channel that has catered
the rural market well. Here, the marketing strategy adopted by Ajanta is worth mentioning which
sells its toothbrushes even through local betel-shops and chemist stores.

Rural market holds unique untapped opportunities for the marketers. But the winning strategies
adopted in the urban market might not be a success in the rural market too since the customers
are completely different with different requirements. Moreover the awareness and increased pur-
chasing power is making them well informed customers with unique needs. One who is able to
deliver value at minimum cost will be the winner in the long run.

THE MARKSMAN                                                                              20
MARKETING AND REVERSE MIGRATION: URBAN TO RURAL

                                 Babita Singla (Assistant Professor)– babitasingla.bfcmt@gmail.com
                                 Saurav Bansal (Lecturer)– sauravbansal.bfcmt@gmail.com
                                        Punjabi University, Patiala

Executive Summary
       Retail‘ is the new tale to tell in India now-a-days. If we view the consumer markets as a
Pyramid (standing upright), people at the Bottom of the Pyramid (BOP) are the main constituents
of these markets. As the global markets have begin to slowdown, Mr. C. K. Prahlad suggested
that four billion poor can fuel the engine of next round of global trade and prosperity, and can
also be a source of innovations. Sadly people at BOP have been ignored by the companies by
considering them irrelevant, have a low disposable income, hence low buying power. So,
companies are in continuous search to find the answer for question i.e. How best to tap the op-
portunities available in this segment? This paper is written with special focus on Buying
Behaviour of people at BOP.




It is imperative to understand the needs these people have before jotting down any marketing strategy as
needs leads to demand, which in turn in satisfied by the product or service.




Characteristics of Market at Rural
Zone
Highly Price Conscious – Generally, price
is sole determinant of selection in this cate-
gory as people at BOP mind every penny
they spent. Hence, they look for value for
money.
Generic Product for Basic Needs –
Needs of these people are very basic in na-
ture, hence they also require very generic
product to satisfying their needs. They are
not fascinated by each and every product.
Low Brand Loyalty – Generally, no brand
loyalty is observed in this market because they do not have that much money to follow a particu-
lar brand. In some cases, where the brand is very cheap, they do exhibit some amount of brand
loyalty like for example in case of India i.e. Nirma Washing Powder.


AUGUST 2011                                                                                    21
Challenges at BOP
Main challenges in this market can be summarized as:-
Illiteracy prevailing in this section of society becomes a challenge for the companies to communi-
cate their value offerings to them.
Counterfeit or Look alike Goods makes it possible for companies to fool them. That is why we
see many companies just changing a letter in the brand name or creating a name with the same
ascent of that of a famous brand.

Unorganized Market i.e. small ―Haats‖ and shops at every nook and corner presently caters to
the needs of the people at BOP.

Lack of Knowledge and
Capabilities about market,
its synergies and 4 A’s –
Availability, Affordability,
Awareness      and Access
poses a great challenge.



Huge Potential – In terms
of market size and in order
to inject a new life to the or-
ganization, this market offers
a huge potential for growth.
Poor live in high cost/low
quality economies. With re-
spect to India, potential of
this market can be summa-
rized as under:-




Strategy of Execution
To target and tap this oppor-
tunity a different mindset is required. A standardized ‗western‘ marketing mix offering cannot be
employed in this scenario. So, we will understand their behaviour with the help of Engel –
Blackwell Miniard Model.

THE MARKSMAN                                                                             22
The exposure to information regarding a general product in this segment is very low,
     hence very little attention regarding the communication. They accept what is provided
     to them and are guided by their past purchase behaviour. This in turn becomes their con-
     sideration set and a part of their memory.
                                                                          Need
                                                                          Recognition- Regu-
                                                                          lar
                             Exposure-Low



                                                                           Search- Lim-
Stimuli Influence-Low                                                                                 Beliefs-
                             Attention-Low                                 ited
                                                                                                      Strong



                                                                           Alternative                 Attitude-

                             Comprehension-
                                                   Mem-                    Evaluation- No
                                                                                                       Positive

                             Low
                                                    ory
                                                                                                       Intention-To
                                                                                                       buy product,


                             Acceptance-High                                    Purchase Deter-
                                                                                mined, Conven-
 External Search- Limited                                                       ient outlets


                             Retention-High
                                                                                   Outcomes




                                                              Dissatisfaction          Satisfaction




                                 Figure: Engel-Blackwell Miniard Model

     As this market is characterized by daily wage earners, whenever the need arises to buy a
     particular product, they go for very limited external search or no search at all regard-
     ing the options, and hence there is no evaluation. They go for Internal Search i.e. their
     memory. Now, if a particular product satisfies their needs, they become the regular user
     of that product. They also spread positive words about the product which serves as ex-
     posure for the product among their peer group.




AUGUST 2011                                                                                                  23
Detailed Marketing Strategy encompasses:
Anti-Precision Pricing: Precision Pricing involves truly understanding the tradeoffs be-
tween price, volume, and profit, and then systematically identifying highly targeted oppor-
tunities in which well-managed pricing can increase profit and boost growth. What it re-
quires is a rigorous, consistent, and insightful focus on that basic but critically important question:
How much will customers buy of my product, and at what price?




                                      Fig: A Typical Precision Cloud

Many companies offer their smaller customers net prices that are as good as or better than those
offered to large accounts. Precision pricing helps dispel such clouds.
Different customers frequently place different values on products and services, as well as on spe-
cific components of an offering. The keys to capturing such value are:




                                     Fig: Keys to Capturing Value




THE MARKSMAN                                                                                  24
The companies need to take the exclusion decision in a very calculated manner since negli-
gence in this aspect can lead to loss of market share.
Group appeal rather than targeting an individual can lead to success.




Products offered to BOP markets must have localized content and firms need to capture larger
volume leads to larger profits.

Conclusion
Therefore the strategy should be culturally sensitive and relationship based. This can in-
clude:
 A unique business model tailored to the local market.
 Identification of the real needs of consumer and product adapted to them.
 Remove the infrastructure problems faced by BOP consumers.
Adopt a participative approach.
The above framework is general and should be tailored as per the needs of the company and type
of the product.

References:
   India's Rural Poverty and Possible Solutions – Y S Rajan
   The ‗Bird of Gold‘: The Rise of India‘s Consumer Market – Mckinsey Global Institute, 2007
   Prof. Dr. Hermann Simon, (2003), ―Pricing: It’s the process – The call for a Profit Renaissance‖,
       Simon Kutcher & Partners, October 7, 2003.
   James P. Andrew, J. Kevin Bright and Henry M. Vogel, (2002), ―Precision Pricing for Profit,
       Growth and Advantage‖, The Boston Consulting Group, September 2002.
   Alex Pratt, (2007), ―The Price is right (or is it?)‖, Director Publications Ltd., February 2007.
   Anderson, C. 2005. Long Tail vs Bottom of Pyramid
   International Marketing At The Bottom Of The Pyramid, Richard Fletcher, University of
       Western Sydney
   Working with the Bottom of the Pyramid: Success in Low Income Markets: Confederation of
       Danish Industries: Copenhagen V.




AUGUST 2011                                                                                  25
BOOKWORM
 Be The Elephant: Build A Bigger, Better Business by Steve Kaplan




                                     Be The Elephant is the second in a series of books written
                                     by Steve Kaplan. This book focuses on growing businesses of
                                     all sizes. However, most of the information focuses on small
                                     businesses that want to grow larger.

                                     What will make you buy?
OUR RATING                           Three things make this book a worthwhile investment
                                         It is concise: Usual business books like to over-explain
                                         things. Be the Elephant luckily is less than 220 pages.
                                        It provides tools: Helpful, simple tools for business analy-
                                         sis like Calculators, Business Success Quotient (BSQ),
Steve Kaplan is founder of The           Business Assessment Model(BAM).
Difference Maker Inc., which pro-       Website - the book is backed up by a website (http://
vides a wide range of business
                                         www.differencemaker.com) that has templates for the
tools to help companies of all
                                         tools.
sizes succeed.Kaplan developed
and used his Bag the Elephant
strategy as the owner of a small     Why wouldn‘t you want to buy?
business, first landing contracts      The coverpage is coated thick with exaggerated superla-
with one of the biggest Elephants       tives and overpromises of success like: A foolproof road
of all, Procter & Gamble, and then      map to success. Don't grow your business without it.
many other big customers before         The statement (whether) "you run a $5 million consult-
selling his company. Over the last      ing business or a three person bakery" then this book
decade, Kaplan has refined his          will help you is an exaggeration as someone running a $5
strategy with 23 businesses he has      million business has far past what this book has to offer.
led and the more than 100 com-
panies with which he has con-
sulted.

                                                                                                         oes
                                                                                           ing growth g
Know more about the book              Key  Quotes:                    andin g still. Avoid          g.‖
                                                        there‘s no st                  wing or dyin
                                          ―In business,                ‘re either gro                      u have
at:                                   
                                              the laws of n
                                                            ature; you                       . To last, yo
                                      against                           ble, b ut necessary
                                                         ot only desira
                                          ―Growth is n                                               ame.‖
                                                                                        e not the s
Available in SIMSR library.            to grow.‖                  being   a leader ar
                                                    owner and
Classification no:658.049               ―Being an




THE MARKSMAN                                                                                           26
Mr. Shankar Subramanian—Product Manager, Onida



     It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay
     Mansukhani started a company called Onida with just a goal of manufacturing televi-
     sion sets and going beyond convention. With the passage of time, superior products
     and the combination of a distinctive voice, a cutting-edge advertising strategy, and
     purposeful marketing ensured that Onida became a household name.

     The common perception was that Onida was a focused TV manufacturer. But then
     with a knack for spotting a gap in the market, Onida realised that there were undis-
     covered needs and wants in other categories of consumer durables as well. Discover-
     ing these latent synergies enabled Onida to provide customers with a wider range of
     products under the ONIDA brand including washing machine, air-conditioner, DVDs,
     LCD, mobiles and
     LEDs.




                               Mr Shankar has over 11 years of experience in the area of sales,
                               marketing and business development in the white good sector.
                               An aluminus of IIM Calcutta, he is adept in conceptualizing
                               Strategies for business development and developing new market
                               segments for maximizing sales growth. Having worked in BEN
                               Q, YAAS Wholesale India Pvt. Ltd., Samsung, Bluestar, LG Elec-
                               tronics and now Onida he has significant experience of handing
                               large business operations profit center management at all India
                               level.

Markman: How do you think customer demands have evolved over time?
A. Customer demands have evolved based on the life cycle of the product. From window ACs,
the customers are now moving towards Split ACs and from CRT to LCD TV. The demand is
transforming towards more technologically advanced products that define their lifestyle. Emphasis
is also being given to features such as energy –efficiency and convenience.



AUGUST 2011                                                                                   27
Marksman: What are the challenges in the current consumer durable industry?
A. The consumer durable industry is flooded with choices for the consumer and the major challenges
include product and feature differentiation and cost- effective communication to the customer. The
customer today has multiple options within the same category and it is challenging to not only focus
on acquiring new customers but retaining the old ones. The affordability of the customers has in-
creased over the past 10 years which provides an extra stimulus to the demand prevailing in the mar-
ket.
The company and the industry also has to face challenges from the retailers‘ end. In the competitive
times of today channel management is emerging as another big challenge. It is imperative for the com-
pany to provide adequate margins to the retailers while ensuring that customer demand and aware-
ness about the product and not retailer margins is the driving force to generate sales.


Marksman: Onida has done away with its all famous Devil and the tagline ‗Neighbour‘s
envy. Owner‘s pride‘. What was company‘s rational behind this decision?
A. The devil was launched at a time when the industry focused more on product based advertising and
at the time of liberalisation when owning a television was considered a big thing. However with the
entry of foreign players product differentiation became more challenging and neighbours no longer
benchmarked their neighbours with the choice of appliances
 From the more competitive approach, the brand is now focusing towards the softer aspects of things
which is getting quite visible in our communication strategies and processes. We are trying to position
the brand as one that understands the customer‘s needs through our tagline ‗Tumko Dekha to yeh de-
sign aaya‘

Marksman: What are the most promising products in the consumer durable industry?
A. LCD TV are expected to grow at the rate of 30% while Air Conditioners and Microwaves are
emerging as the next best promising goods expected to grow at the rate of 20% over the next 5 years.
These products are emerging as the key growth drivers for Onida.

Marksman: The current market penetration of LCD TV and ACs is only 2%. How does
Onida plan to overcome this challenge?
A. We have launched a new range of LED and LCD tv‘s in order to gain more penetration into the
market. Onida LED, with iCare technology is easier on the eyes due to being reflection free and is also
tougher than most other LCD‘s/LED‘s available in the market. With such product offerings, we aim to
gain a stronger footholds in the lucrative LED/LCD market.
With regards to the AC segment, we have launched world‘s 1 st pre-cool AC, wherein you can switch
on your AC through a simple SMS even while you are away from home, and by the time you reach
back home, your room is well cooled. With this we aim at targeting the more affluent customers who
value a pre-cooled room over anything else.

  THE MARKSMAN                                                                                28
A RECAP OF INTERFACE EVENTS




                                              Event: Guest Lecture-Wipro Consmer Care
                                              Speaker: Mr. Abhishek Jha
                                                       Regional HR, Wipro consumer care
                                              Date: August, 2011
                                              Venue: Seminar Hall, SIMSR


                                                         Event: Guest Lecture-Onida
                                                         Speaker: Mr. Shankar Subramanian
                                                                    Product Manager-Onida
                                                         Date: July,2011
                                                         Venue: Seminar Hall,SIMSR




                                        Event: Nissan Student Brand Manager Contest Launch
                                        Guest: Mr. Dinesh Jain
                                               CEO, Hover Automotive India (HAI)
                                        Date: June,2011
                                        Venue: Red Auditorium,SIMSR

                                  The Japanese car maker NISSAN announced the second edi-
                                  tion of its ‗Nissan Student Brand Manager‘ (NSBM) Program
                                  2011 in India and the press release of the event took place on
                                  20th june,2011 in SIMSR.
                                  Targeting the most talented young student crowd in the coun-
try, Nissan has invited over 150 colleges spanning 15 cities across India to participate in their
brand management contest that is looking out for 20 Student Brand Managers‘ from a total of
1200 shortlisted applicants. The 20-selected NSBMs‘ will work under Nissan for a period of a six
(06) months (July to Dec‘2011) and will play a key role in bringing the Japanese car brand closer
to both the student community and the public in general through their innovative marketing ini-
tiatives.

AUGUST 2011                                                                                29
Google vs. Facebook
Google and Facebook get personal in battle for social networking rewards. It is one month since
the launch of Google+, a belated attempt at a social networking tool that invites users to follow
friends' activities in their news feed and share favorite content by marking it "+1". If this sounds
familiar, it shows the extent to which Google is playing catch up with Facebook, which is brew-
ing a public offering next year that could value the firm at $100bn and, critically, has positioned




itself as the gateway to the web for many of its 750 million users.
Though Google+ is an intelligent attempt at a social networking tool, it seems a typical Google
product in that it is brilliantly, heavily engineered but lacks the human focus required for a social
network – the fuel that has propelled Facebook to 750 million users. Google and Facebook are
both keen to burnish their scientific credentials, ultimately the real battle is over cold, hard cash.
Google made 97% of its revenues, or $32.3bn, in the past 12 months from advertising. EMar-
keter, meanwhile estimates that Facebook's largely ad-generated revenues will grow from
$0.74bn in 2009 to $5.74bn in 2012 – yet the site has hardly begun rolling out truly personal-
ized, targeted advertising. If there is any of Google's lunch to be eaten, it is here.


              Why Reebok bonds well with The Masses and the classes?
Reebok‘s marketing strategy to associate itself with the cricket frenzy Indians, instead of banking
on the aura of international sports stars to push its wares — which Nike, Adidas and Puma tried
doing unsuccessfully in India — proved to be a resounding success. Thanks to its association with
cricket, Reebok enjoys total brand recall and stickiness in the minds of consumers.
                                                                                                 01
THE MARKSMAN                                                                                    30
Global beer compa
                         nies battle it out:
 Global brewer SABM                            SABMiller goes ho
                        iller took its $10 bi                          stile with $10 bn Fo
shareholders on W                             llion bid for Austral                           ster's bid
                     ednesday just days                             ia-focused Foster's
                                           before the Australia                         Group direct to
show flagging profits                                            n brewer's annual re
                      . The cash offer at $A                                            sults are set to-
proach in June, which                           4.90 a share was un
                        was rejected by the                           changed from SABM
                                              Foster's board.                             iller's first ap-


BCG hires McKinsey to advise it on how to become number 1
Strategy consulting major Boston Consulting Group (BCG) announced today that it has hired the
services of the world‘s number 1 strategy consulting firm McKinsey to advise BCG on how to re-
place McKinsey as the number 1 strategy consulting firm. McKinsey has readily agreed to serve its
new client as professionally as possible.

  Officer's Choice
                       , McDowell's No
  liquor chart                            1, Celebration,
                                                              Honey Bee and
                                                                                   Old Tavern top
 Indian liquor swep                                                                                   global
                      t the 2010 list of
 the first five spots                    top-10 global spir
                      almost entirely on                     its brands in volu
                                          domestic sales. A                     mes growth, taking
Choice came in as                                             llied Blenders & D                        home
                      the fastest volum                                            istillers' (ABD) O
London-based rese                        e generator with                                             fficer's
                      arch firm The IW                      2.98 million nine -li
                                         SR said in its Aug                       tre cases added in
2009.                                                       ust report. The br                         2010,
                                                                                and was ranked fo
                                                                                                     urth in


Nestlé‘s mint Polo launched with a 'hole new fashion'
Ever heard of designer polo mints? As bizarre and whacky as it may sound, it‘s true. Nestle has
tied up with Goa-based designer Wendell Rodricks for its confectionary brand Polo's stylized
look. So it's not 'The mint with a hole' but a 'Hole new fashion' that has taken over.




 THE TRUTH AB
                    OUT THE GOOG
 Disaster                                  LE-MOTOROLA
                                                                DEAL: It Could E
                                                                                     nd Up Being a
 Google is now com
                    peting with its partne
kind of business th                        rs. And hardware m
                    an Google's core bu                          anufacturing is an en
                                          siness. And hardwar                          tirely different
margin commodity                                                 e manufacturing is
                   business. And Motor                                                a crappy, low -
company by 60%. A                         ola is massive--Goo
                  nd the deal appears                          gle has just increase
                                        to be purely a defens                        d the size of its
                                                              ive move, not an offe
                                                                                    nsive one.

AUGUST 2011
Map the crossword with the visual and textual clues.




Across:                                         Down:
1. Asocial networking site aimed at teenagers   2. Manufacturing clothing, fragrance, and fash-
where are ‗credits‘ and ‗pixels‘ used as cur-   ion accessories endorsed by Emma Watson
rency                                           3. His collections of clothing and accessories
4. The unique market research firm's logo has   for both men and women are usually identified
this unique symbol                              by the presence of his multistripe signature
6. An automobile manufacturer whose name        somewhere on each item.
means double dragons.                           5. The company which celebrated US landing
7. The Hindu and Jain mythology refer to this   on the moon with "Its ugly but it get you
company's name as the centre of the universe.   there"
8. Hand block prints from Jaipur which is de-
rived from the Sanskit word ―to play‖
9. Mascot of which brand of cookies?


THE MARKSMAN                                                                            32
CALL FOR ARTICLES
                                 SEPTEMBER 2011



                                        Articles can be sent on any one of the following topics*:

                                        a) Hero Honda Re-branding to Hero Moto Corp- Do you
                                        like it?
                                        b) How would you market " Indian Grand Prix " to cricket
                                        fans
                                        c) Marketing of Luxury Goods
                                        d) Faith Marketing- Strategies of marketers selling spirituality
                                        and related products and services.

                                        *Please ensure that there is no plagiarism and all references
                                        are clearly mentioned

                                            One article can have only one author.

                                            Your article should be from 500-600 words and MUST
                                        be replete with relevant pictures that can be used to en-
                                        hance your article.

                                             Send in your articles in .doc/.docx format with font
                                        size 11 (Arial) to: interface.newsletter@gmail.com

                                            Subject Line:Your Name_Institute Name_Course Year.

                                            Kindly name your file as:Your Name_Topic

                                        The best adjudged article will be given a winner's certificate
                                        with the noteworthy articles being published in the Septem-
                                        ber issue and on the interface website / Facebook page.


                                        Deadline for submission of the articles: 11:59 PM , 10th Sep-
                                        tember2011



Deadline for submission of the articles: 11:59 PM , 7th August 2011
The marksman is the newsletter of INTERFACE , the Marketing
            Club at K J Somaiya Institute of Management Studies and Research, Mumbai.
                     Images used in the marksman are subject to copyright.




                     To subscribe to "The Marksman", Follow the link:-
                     http://interfacesimsr.weebly.com/the-marksman.html

                     OR drop in a mail to interface.newsletter@gmail.com
              Subject line: Subscribe: Your Name_Institute Name_Course Year


Contact us at: interface.newsletter@gmail.com


Website: http://interfacesimsr.weebly.com


Follow us at: http://www.facebook.com/simsr.interface

                                      THE A-TEAM


 COVER STORY                       SECONDARY STORIES                 ALL ABOUT BRANDS
 Divya S                           Hetal G                           Pramit G
 Shelani A



 BOOKWORM                          TETE-A-TETE & REWIND              COVER PAGE
 Rajat P                           Namita S                          Vibhav S Niyati C
                                   Rishi M                           Hinal S   Tilottama S


 TWEETS                            BUZZ                              DESIGN
 Kavita S                          Rajat P                           Namita S      Rishi M
                                                                     Shelani A     Rajat P

Mais conteúdo relacionado

Mais procurados

autosuccessMay06
autosuccessMay06autosuccessMay06
autosuccessMay06autosuccess
 
The Ultimate Guide to Digital Marketing Terms For Noobs
The Ultimate Guide to Digital Marketing Terms For NoobsThe Ultimate Guide to Digital Marketing Terms For Noobs
The Ultimate Guide to Digital Marketing Terms For Noobsforewardsapp
 
Ashlei Smith Mobile eMarketing Strategy
Ashlei Smith Mobile eMarketing StrategyAshlei Smith Mobile eMarketing Strategy
Ashlei Smith Mobile eMarketing StrategyAshlei Smith
 
Lets make money_online
Lets make money_onlineLets make money_online
Lets make money_onlineankur saini
 
Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.
Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.
Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.Isabella
 

Mais procurados (7)

autosuccessMay06
autosuccessMay06autosuccessMay06
autosuccessMay06
 
The Ultimate Guide to Digital Marketing Terms For Noobs
The Ultimate Guide to Digital Marketing Terms For NoobsThe Ultimate Guide to Digital Marketing Terms For Noobs
The Ultimate Guide to Digital Marketing Terms For Noobs
 
Ashlei Smith Mobile eMarketing Strategy
Ashlei Smith Mobile eMarketing StrategyAshlei Smith Mobile eMarketing Strategy
Ashlei Smith Mobile eMarketing Strategy
 
Adspaypro
AdspayproAdspaypro
Adspaypro
 
Daily Hundred for Business
Daily Hundred for Business Daily Hundred for Business
Daily Hundred for Business
 
Lets make money_online
Lets make money_onlineLets make money_online
Lets make money_online
 
Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.
Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.
Good Ecommerce - A Comprehensive Guide All about Good Ecommerce.
 

Destaque

1 сентября
1  сентября1  сентября
1 сентябряfester567
 
Desayuno molinero y concurso gastronómico
Desayuno molinero y concurso gastronómicoDesayuno molinero y concurso gastronómico
Desayuno molinero y concurso gastronómicogruntowa
 
Global Skills Conference March 2013
Global Skills Conference March 2013Global Skills Conference March 2013
Global Skills Conference March 2013John Rose
 
The marksman february 2012
The marksman february 2012The marksman february 2012
The marksman february 2012marksmansimsr
 
презентация Cars guru white label
презентация Cars guru white labelпрезентация Cars guru white label
презентация Cars guru white labelAndrey Giyazov
 
The marksman march 2012
The marksman march 2012The marksman march 2012
The marksman march 2012marksmansimsr
 
14 chemical reations
14 chemical reations14 chemical reations
14 chemical reationsmyflec
 
The marksman summer edition 2012
The marksman summer edition 2012The marksman summer edition 2012
The marksman summer edition 2012marksmansimsr
 
The marksman december 2011
The marksman december 2011The marksman december 2011
The marksman december 2011marksmansimsr
 
The marksman july_2012
The marksman july_2012The marksman july_2012
The marksman july_2012marksmansimsr
 
The marksman november 2012
The marksman november 2012The marksman november 2012
The marksman november 2012marksmansimsr
 
cryogenic rocket engine
cryogenic rocket enginecryogenic rocket engine
cryogenic rocket engineSoham Koli
 
The marksman october_2012
The marksman october_2012The marksman october_2012
The marksman october_2012marksmansimsr
 
Service operation ppt
Service operation pptService operation ppt
Service operation pptBhaskar Das
 
TobbeFörst 01.jpg
TobbeFörst 01.jpgTobbeFörst 01.jpg
TobbeFörst 01.jpgTorbj Sn
 
Pronunciamiento PATRIA ROJA
Pronunciamiento PATRIA ROJAPronunciamiento PATRIA ROJA
Pronunciamiento PATRIA ROJATania Roja
 

Destaque (16)

1 сентября
1  сентября1  сентября
1 сентября
 
Desayuno molinero y concurso gastronómico
Desayuno molinero y concurso gastronómicoDesayuno molinero y concurso gastronómico
Desayuno molinero y concurso gastronómico
 
Global Skills Conference March 2013
Global Skills Conference March 2013Global Skills Conference March 2013
Global Skills Conference March 2013
 
The marksman february 2012
The marksman february 2012The marksman february 2012
The marksman february 2012
 
презентация Cars guru white label
презентация Cars guru white labelпрезентация Cars guru white label
презентация Cars guru white label
 
The marksman march 2012
The marksman march 2012The marksman march 2012
The marksman march 2012
 
14 chemical reations
14 chemical reations14 chemical reations
14 chemical reations
 
The marksman summer edition 2012
The marksman summer edition 2012The marksman summer edition 2012
The marksman summer edition 2012
 
The marksman december 2011
The marksman december 2011The marksman december 2011
The marksman december 2011
 
The marksman july_2012
The marksman july_2012The marksman july_2012
The marksman july_2012
 
The marksman november 2012
The marksman november 2012The marksman november 2012
The marksman november 2012
 
cryogenic rocket engine
cryogenic rocket enginecryogenic rocket engine
cryogenic rocket engine
 
The marksman october_2012
The marksman october_2012The marksman october_2012
The marksman october_2012
 
Service operation ppt
Service operation pptService operation ppt
Service operation ppt
 
TobbeFörst 01.jpg
TobbeFörst 01.jpgTobbeFörst 01.jpg
TobbeFörst 01.jpg
 
Pronunciamiento PATRIA ROJA
Pronunciamiento PATRIA ROJAPronunciamiento PATRIA ROJA
Pronunciamiento PATRIA ROJA
 

Semelhante a The marksman august 2011

Affiliate marketing
Affiliate marketingAffiliate marketing
Affiliate marketingRITA NONG
 
Internet Marketing
Internet MarketingInternet Marketing
Internet MarketingLaura Brown
 
Web Marketing Academy Study Material - Affiliate Marketing
Web Marketing Academy Study Material - Affiliate MarketingWeb Marketing Academy Study Material - Affiliate Marketing
Web Marketing Academy Study Material - Affiliate MarketingKaushik Ghorpade
 
E book - affiliate marketing
E book - affiliate marketingE book - affiliate marketing
E book - affiliate marketingvikassawant24
 
E book - affiliate marketing
E book - affiliate marketingE book - affiliate marketing
E book - affiliate marketingERRABEHY
 
freefiretools.pdf
freefiretools.pdffreefiretools.pdf
freefiretools.pdfskk648827
 
Part Three Affiliate Marketing And Lead Generation
Part Three Affiliate Marketing And Lead GenerationPart Three Affiliate Marketing And Lead Generation
Part Three Affiliate Marketing And Lead GenerationRanda Manning-Johnson
 
Affiliate marketing
Affiliate marketingAffiliate marketing
Affiliate marketingYardz
 
CPA Marketing. 100$ IN HOUR
CPA Marketing. 100$ IN HOURCPA Marketing. 100$ IN HOUR
CPA Marketing. 100$ IN HOURRutvikkevines
 
Cpa marketing
Cpa marketingCpa marketing
Cpa marketingmdjasim9
 
Affiliate gold
Affiliate goldAffiliate gold
Affiliate goldmakjay
 
Automatic earning money system
Automatic earning money systemAutomatic earning money system
Automatic earning money systemNeelHope
 
Top 10 Online business models to make money
Top 10 Online business models to make moneyTop 10 Online business models to make money
Top 10 Online business models to make moneyAnjali Mehta
 

Semelhante a The marksman august 2011 (20)

Affiliate marketing
Affiliate marketingAffiliate marketing
Affiliate marketing
 
Fast guide to cpa incomes
Fast guide to cpa incomesFast guide to cpa incomes
Fast guide to cpa incomes
 
Make 9 549 on cpa network
Make 9 549 on cpa network Make 9 549 on cpa network
Make 9 549 on cpa network
 
Internet Marketing
Internet MarketingInternet Marketing
Internet Marketing
 
Web Marketing Academy Study Material - Affiliate Marketing
Web Marketing Academy Study Material - Affiliate MarketingWeb Marketing Academy Study Material - Affiliate Marketing
Web Marketing Academy Study Material - Affiliate Marketing
 
Affiliate marketing
Affiliate marketingAffiliate marketing
Affiliate marketing
 
E book - affiliate marketing
E book - affiliate marketingE book - affiliate marketing
E book - affiliate marketing
 
affiliaters
affiliatersaffiliaters
affiliaters
 
E book - affiliate marketing
E book - affiliate marketingE book - affiliate marketing
E book - affiliate marketing
 
freefiretools.pdf
freefiretools.pdffreefiretools.pdf
freefiretools.pdf
 
Part Three Affiliate Marketing And Lead Generation
Part Three Affiliate Marketing And Lead GenerationPart Three Affiliate Marketing And Lead Generation
Part Three Affiliate Marketing And Lead Generation
 
Affiliate marketing
Affiliate marketingAffiliate marketing
Affiliate marketing
 
Affliate marketing
Affliate marketingAffliate marketing
Affliate marketing
 
Cpa marketing
Cpa marketingCpa marketing
Cpa marketing
 
CPA Marketing. 100$ IN HOUR
CPA Marketing. 100$ IN HOURCPA Marketing. 100$ IN HOUR
CPA Marketing. 100$ IN HOUR
 
Cpa marketing
Cpa marketingCpa marketing
Cpa marketing
 
Affiliate gold
Affiliate goldAffiliate gold
Affiliate gold
 
Automatic earning money system
Automatic earning money systemAutomatic earning money system
Automatic earning money system
 
Top 10 Online business models to make money
Top 10 Online business models to make moneyTop 10 Online business models to make money
Top 10 Online business models to make money
 
Affiliate marketing-101
Affiliate marketing-101Affiliate marketing-101
Affiliate marketing-101
 

Mais de marksmansimsr

The marksman december_2012
The marksman december_2012The marksman december_2012
The marksman december_2012marksmansimsr
 
The marksman february 2013
The marksman february 2013The marksman february 2013
The marksman february 2013marksmansimsr
 
The marksman october 2011
The marksman october 2011The marksman october 2011
The marksman october 2011marksmansimsr
 
The marksman january_2013
The marksman january_2013The marksman january_2013
The marksman january_2013marksmansimsr
 
The marksman anniversary_august 2012
The marksman anniversary_august 2012The marksman anniversary_august 2012
The marksman anniversary_august 2012marksmansimsr
 
The marksman september 2011
The marksman september 2011The marksman september 2011
The marksman september 2011marksmansimsr
 
The marksman november 2011
The marksman november 2011The marksman november 2011
The marksman november 2011marksmansimsr
 
The marksman july 2011
The marksman july 2011The marksman july 2011
The marksman july 2011marksmansimsr
 
The marksman january 2012
The marksman january 2012The marksman january 2012
The marksman january 2012marksmansimsr
 
The marksman september_2012
The marksman september_2012The marksman september_2012
The marksman september_2012marksmansimsr
 

Mais de marksmansimsr (10)

The marksman december_2012
The marksman december_2012The marksman december_2012
The marksman december_2012
 
The marksman february 2013
The marksman february 2013The marksman february 2013
The marksman february 2013
 
The marksman october 2011
The marksman october 2011The marksman october 2011
The marksman october 2011
 
The marksman january_2013
The marksman january_2013The marksman january_2013
The marksman january_2013
 
The marksman anniversary_august 2012
The marksman anniversary_august 2012The marksman anniversary_august 2012
The marksman anniversary_august 2012
 
The marksman september 2011
The marksman september 2011The marksman september 2011
The marksman september 2011
 
The marksman november 2011
The marksman november 2011The marksman november 2011
The marksman november 2011
 
The marksman july 2011
The marksman july 2011The marksman july 2011
The marksman july 2011
 
The marksman january 2012
The marksman january 2012The marksman january 2012
The marksman january 2012
 
The marksman september_2012
The marksman september_2012The marksman september_2012
The marksman september_2012
 

The marksman august 2011

  • 2. EDITOR‘S DESK AUGUST 2011 Interface-the Marketing Club of SIMSR would like to present to you the 3rd issue of ―The Marks- man‖. First of all we would like to thank all for an overwhelming response to our magazine. In this issue, we focus our attention to ‗Affiliate Marketing‘- an e-commerce version of the tradi- tional agent/referral fee sales channel concept. Affiliate Marketing has made businesses millions and ordinary people millionaires. Our cover story gives a comprehensive picture of the process and the evolution of affiliate marketing along with the challenges faced by it. Most of us are by now well versed with the Kotlers and the Kellers of the world, the best prac- tice cases, the Nike‘s and the Intel‘s. Its time to get real. We live in country of mass social and cultural diversity, and what works in one country may or may not work in another. Hence, with this issue, we endeavour to bring about a little awareness and knowledge about the significant In- dia, ―The Rural India.‖. In our sections of brands, this time around we focus on a irrepressible, undeniable brand, ―Rajnikanth!‖ (Hope you don‘t MIND IT!) Our regular section of bookworm section, tweets and Buzz will appeal to all. We would also like to congratulate the winner of our featured articles, Sharad Deep! We also have a special Fac- ulty section for this issue, where an article by Ms. Babita and Mr. Saurav, professors at Punjabi University, has been featured. We understand that ―knowledge‖ cannot be contained, and we would only be foolhardy to be- lieve that we could encompass all of it in one go. Hence, we would be featuring 6 of the notewor- thy articles received, on our facebook page (facebook.com/simsr.interface) and we promise you they will be well worth your time! A gold mine of knowledge awaits our readers! Cheers!! Team –Marksman AUGUST 2011 01
  • 3. COVER STORY AFFILIATE MARKETING…………………………………………………………….……....03 SECONDARY STORY SOCIAL MEDIA– LISTENING OVER COMMUNICATION..……………...……….……….06 ALL ABOUT BRANDS THE UTOPIAN BRAND– RAJNIKANTH..………………………………………...……….08 FEATURED ARTICLES BRANDING PARADIGM FOR THE BOTTOM OF THE PYRAMID Sharad Deep, MDI Gurgaon……………... ……..…..11 TWO SIDES OF A COIN: Lehar iron chusti for Rural markets? Pavan Kumar C (IIFT, Delhi),Varun Tejwani (SIBM Pune)……………….…..14 THE BURGEONING RURAL MARKET Asim Kumar Verma, Kritika Chandra (IMT Nagpur)…………………..19 . MIGRATION AND REVERSE MIGRATION-URBAN TO RURAL Ms. Babita Singla, Mr. Saurav Bansal (Punjabi University)..………………….…21 REGULARS BOOKWORM ………………………………………………………………….………….....26 TETE-A-TETE………………………………………………………………………………….27 REWIND ………………………………………...………………………...……………….…29 TWEETS ………………………………………………………………………..………….…..30 BUZZ ……………………………………………………………………...…………………...32 THE MARKSMAN 02
  • 4. AFFILIATE MARKETING With the advent of e-commerce new forms of marketing have emerged. Here we delve into intriguing world of Affiliate Marketing. We feel that being an affiliate is a bit like being a commissioned sales person online….! Read on to find more about it. two years before the Amazon Associate Pro- WHAT‘S AFFILIATE MARKETING? gram was launched. Adult websites used affiliate Affiliate Marketing typically refers to an elec- marketing methods to promote their busi- tronic commerce version of the traditional nesses even before CDNow. Now almost agent/referral fee sales channel concept. It is every large e-commerce site has some sort of a web-based marketing practice in which a busi- affiliate program. ness rewards one or more affiliates for each visitor or customer brought about by the affili- ate's marketing efforts. An e-commerce affiliate is a website which links back to an e-commerce site with the goal of making a commission for referred sales. Affiliate marketing is a narrower part of online (or internet) marketing. The compensation or commission that an affili- ate receives may be based on a certain value for every exposure, visit (pay per click), new HOW DOES IT WORK? client (pay per lead), sale which is usually a per- Affiliate marketing network includes three-parts centage of the item sold (pay per sale or reve- cooperation which involves a merchant (or he nue share) or it may be a combination of any of is often referred as an advertiser, a brand or a these. It is a modern variation of the practice of seller), an affiliate himself (or a publisher) and a paying finder's-fees for the introduction of new customer. Affiliate marketing works step-by- clients to a business. step. An affiliate partner signs up to advertise HOW DID IT EVOLVE? the merchant's goods or services in order to In the mid-90's Amazon.com pioneered the direct a customer to the relevant web page idea by enabling Web site owners to link to which contains the information about adver- their books and earn a commission if someone tised goods or services. For every customer an clicks over from their Web site to Amazon and affiliate gets affiliate marketing commission. buys the book. Each affiliate is given a unique link to paste into The original idea on the "above-the-ground his or her website, so the vendor can track Internet" was introduced by CDNow in 1994, which affiliate is responsible for generating a AUGUST 2011 03
  • 5. Sale. An additional benefit of affiliate marketing affiliate program, production expenses is embodied in the opportunity to create sub- are no longer an issue as the product has affiliate network (2-tier affiliate marketing). It been developed and proven to be good. means that every affiliate is able to attract Best of all, this has all come out of the more partners to work for him or her and merchant‘s accounts and not yours. bring additional percentage from every  Do not need a lot of money to set customer's action. In such a way, the affiliate up- All anyone will require is a desk, lap- marketing sites develop a large program that top or computer, internet connection in envelops many people all over the world. addition to word processing software in AFFILIATE INTERNET MARKETERS order to get going. As e-commerce continues to evolve, e-  Costs Involved- Generally it is usually commerce affiliates are no longer restricted to totally free to join an affiliate program, website owners. They also promote the other and most the set up costs and shipment business by writing articles for blogs, making costs will be met by the particular mer- simple websites that provide consumers infor- chant whose products you are advertis- mation, and even making referral videos and ing. Plus, as you do not need anywhere posting them on Youtube! to store goods, this is actually another Affiliate marketers don't necessarily have to reason for joining an affiliate program. be affiliate marketers specifically. Sometimes  Options- There are usually 1000′ s of such marketers can be the e-commerce web products and services that a person can site that actually sells the products and ser- choose from. So finding the correct vices. products for possibly a site you have cur- WHY AFFILIATE MARKETING? rently or maybe one in which you are  No Development Costs- With a good planning to create is immense. THE MARKSMAN 04
  • 6. No need to have a Merchants Ac- count- As an affiliate marketer, the mer- CHALLENGES…. chant you are selling the product or ser- Revenue Generation Time vice to will carry all costs, as well as han- In spite of its availability, affiliate marketing dle the processing of all payments. So might require some special attention for the you never have to be concerned about first time before it starts working and bringing any possible charge backs, fraudulent some income automatically. purchases or losing your own merchant Spamming account completely as an affiliate. Plus, In its early days many internet users held nega- no longer will you be worried with col- tive opinions of affiliate marketing due to the lecting and storing names and addresses tendency of affiliates to use spam to promote of customers along with their credit card the programs in which they were enrolled. As information, as this will be all affiliate marketing has matured many done by the merchant who you Something to affiliate merchants have refined their are affiliated to. ponder over….. terms and conditions to prohibit affili-  No middlemen- The advan- "I want to add ates from spamming. Many affiliates tage of this method of market- some affiliates to have converted from sending email ing is that it cuts out the mid- my website." spam to creating large volumes of dleman but it does require the autogenerated webpages each de- affiliates to have a high degree "I want to add voted to different niche keywords as of trust in the software and some affiliate a way of SEOing their sites with the people behind the e-commerce products to my search engines. This is sometimes re- web site in question. website." ferred to as spamming the search en- WHERE IS IT BEING USED? gine results. Some e-commerce sites, such as "I want to add some affiliate links Amazon.com run their own affiliate Click Fraud programs while other e-commerce Click fraud is a type of Internet crime vendors use third party services provided by that occurs in pay per click online advertising intermediaries like CommissionJunction.com, when a person, automated script or computer and LinkShare.com to track traffic or sales that program imitates a legitimate user of a web are referred from affiliates. Some businesses browser clicking on an ad, for the purpose of owe much of their growth and success to this generating a charge per click without having marketing technique. actual interest in the target of the ad's link. There are different technological solutions Click fraud is the subject of some controversy available for merchants who are considering and increasing litigation due to the advertising adding an affiliate strategy to their online sales networks being a key beneficiary of the fraud. channel. Some types of affiliate management solutions include: standalone software, hosted services, shopping carts with affiliate features, and third party affiliate networks. AUGUST 2011 05
  • 7. Social media - listening over communication End of one sided communication All readers would at least be having a facebook or twitter profile, moreover it would have been reviewed by you at least once in a day. This is reach & voltage of media called Social Media. Social Media as the name suggests is media with social interaction. This medium‘s reach is growing by leaps & bounds. There are many facets which is intriguing the marketer about this platform. Two prominent aspects are –  A place to communicate about brand, and features which it offers.  A place to listen to consumers The later aspect is been overlooked by many brands currently. Marketers are known for talking, not listening. Many are forgetting that it provides great opportunity to learn at a grassroots level what people really think about a brand, products or services. Indeed, listen- ing to the groundswell of consumer-generated content is the new marketing. This does not imply that tools like focus groups, user surveys or other research instruments would be passé but the new medium would provide better understanding of consumer behavior as this space provides unbiased and free opinions. Some of key characteristics of listening - Why listen - People are using various means like Facebook post, Twitter‘s tweet or various blog posts‘ blogging about their experience positive or nega- tive with a product or service. The conversations are influencing in multifold. There is avalanche effect due to peer influences. If negative reviews or comments are not handled with care in nascent stage it might lead to complete dilu- tion of brand. What to listen for - Share of voice - This is a measurement of how much and to what degree people are talking about you. This will help in understanding the buzz about brand and its competitors. THE MARKSMAN 06
  • 8. Social media listening over communication Tone of voice - This is a gauge of whether the conversation is largely positive or nega- tive and is often referred to as "sentiment analysis." If the sentiment is positive, re- ward those who speak well of you. That will presumably encourage them to do even more. If the tone is largely negative, it is incumbent upon you to get to the root of the problem, if, in fact, a problem exists. Fix the problem and the tone will likely change. If it's misinformation that's being spread, you must engage the critics and correct their misunderstanding. Trends over time - It is important to monitor both the above metrics, over the course of time in order to see the effects of advertising, marketing and PR. How to listen - This listening can be done via using free tools like ‗Social Mention‘ or ‗RSS feeds‘ etc or paid tools like ‗Radian 6‘ or ‗SM2‘. There can be manual finding which can be strenuous but very fruitful as this can help in overcoming the flaws of technical tools. e ord to Ignore th at , One Can‘t Aff This sums up th re is a convers ation A ny Longer, the IN IT. Conversation PARTICIPATE y brands‘ honor happening in an AUGUST 2011 07
  • 9. The Utopian Brand: RAJNIKANTH ―Yen Vazhi, Tani Vazhi!‖ tional. Anyone who has encountered PLCs in the The above quote is in Tamil. Understandably, course of study or business would know that the they mean nothing to a vast majority of Indi- curves are S-shaped, the reason why these curves ans, who have absolutely no knowledge of the are called S-curves. There is an inception followed language. However if one mentions these four by a rapid growth phase, which is followed by a words to someone from period of stagnant growth, which then culmi- Tamil Nadu, in all prob- nates in decline. In Rajni‘s case, there have ability the person would been periods of stagnant growth, but decline break into a wide smile. has never crossed his path. The minor hiccups The emergence of the im- that have come his way may be treated as age in the person‘s mind, small kinks in his progress curve, but they of a young man challenging have never been able to dent his upward the evil intentions of a climb. This is because here is a brand that femme fatale would be the competes not with other brands in the mar- reason behind the smile. . ket, but with itself. Each successive film After all, when the words grosses more than have been mouthed by the the previous film, greatest Tamil actor of all time in his 150th film, which has lead film re- which has been one of the biggest blockbusters viewers and critics to of his career, there is something to smile rightly mention: ―Only about. He is the only person in the world, his a Rajnikant film can fans believe, who can say ―My Way is the break the record of a Unique Way‖, which is what the above words Rajnikant film‖. mean, in, well, his unique way. When someone aged 60 years, acts as leading man in a movie, Not only is he a house- which, in this day and age is able to gross 216 hold name in Tamil Nadu, but also in neighbour- crores in the first week itself, there must be ing Kerala, Andhra Pradesh and Karnataka. The something special about him. For his viewers, entire country connects to his name; associating his audience he is ―Thalaivar‖ or God. For his him with his uniquely styled dialogues and man- directors, his producers, his co-stars he is the nerisms. Rajni can arguably be considered as the Utopian Brand- one that repositions, reinvents only Indian actor having a substantial Japanese and ensures over-normal returns. His name is base, which was built after his film Muthu (1995) Rajnikanth. was dubbed and released in Japan. Films namely RAJNI: The Brand Baba (2002), Chandramukhi (2005) and Sivaji The journey of this brand called Rajni, what we (2007) were also released in Japan, which greatly might call in marketing jargon as PLC or Prod- consolidated his position as a leading Asian star. uct Life Cycle, has been extremely unconven- THE MARKSMAN 08
  • 10. The Utopian Brand: RAJNIKANTH The Indian Prime Minister Dr. Manmohan recall that MGR’s ill health and subsequent Singh, on a visit to Japan in 2006, acknowl- death unleashed a flurry of death, suicide and edged the role of Muthu in forging positive re- chaos all over Tamil Nadu. But Rajni’s popu- lations between the two nations. Infact, Rajni larity seems to surpass that of all his three received a remuneration of 26 crores for his predecessors. In this respect one may recall the film Sivaji, which catapulted him to the posi- movie tion of 2nd highest paid star in Thalapathy, in which Asia after Jackie Chan. Rajni’s Rajnikanth co-starred 2005 film Chandramukhi with the Malayalam which is to date the longest superstar Manmooty. running Tamil film, having The film initially run at the theatres for 800 showed Rajnikanth days, was dubbed in German getting killed trying to and released in all German- protect his friend Man- speaking nations. mooty, who later The way his latest film Enthi- takes revenge for his ran is grossing, it is expected death. However, when that the curve would bend this movie was re- higher still. For artistes who have been in the leased in Tamil Nadu, there was widespread industry for 35 years, achieving this trend is an discontentment, and two or three screens aspiration. For Rajni this has been a reality: were burned. The producers had to later re- having acted in over 150 films in Tamil, Kan- make the film, with Rajnikant surviving, and nada, Malayalam, Telegu, Hindi and even Ben- Manmooty dying, and the former taking re- gali, over a period of 35 years, his popularity venge. and his saleability refuses to wane. Not to for- All this cannot be attributed to screen pres- get the Hollywood movie Bloodstone produced ence alone. This calls for a ―product analysis‖. by Ashok Amritraj in 1988, which featured him in a supporting act. In 2007, Asia week RAJNI: ―The Product‖ named Rajni as one of the most influential per- To understand the adulation that Rajni com- sons in South Asia. mands, we should first ascertain who the per- All these facts make one wonder, how did the son is, what his origins are and how he Rajni phenomenon come about and what were reached the pinnacle of Tamil cinema. In other the reasons behind it. Fan frenzy is not new to words, in order to fully appreciate Rajni as a the Tamil industry. Sivaji Ganesan, Gemini person, one should know the story of how a Ganesan and more prominently MGR were bus conductor named Sivaji Rao Gaekwad be- one of the greatest actors who enjoyed great came the superstar Rajni. popularity levels among the masses. One may The point worth mentioning first is that the biggest superstar of the Tamil film industry is a AUGUST 2011 09
  • 11. The Utopian Brand: RAJNIKANTH Maharashtrian. He was born in Bangalore, and Kaveri water sharing verdict, protesting was the youngest child of his parents. His against which he undertook a fast have also mother died when he was aged 5 years, and won him a lot of respect in Tamil Nadu. The what followed was an impoverished childhood. great man that he is, he has also thanked the To make ends meet, he served as a coolie in his Karnataka Govt, and the Kannada film indus- community. After some basic education, he try for their receptiveness, when his 2008 joined the Bangalore Transport Service as a bus film Kuselan was released there. conductor. His passion for acting was noticed and deeply encouraged by his friend and co- CONCLUSION worker Raj Bahadur. It was with his help that The intent behind this article is to showcase Rajni came to Chennai, to try his luck at acting, a brand which has defied all the theories and subsequently joined the Madras Film Insti- that brands generally adhere to. The brand tute. It was there that one day, the renowned has repositioned itself from time to time. director K. Balachander noticed him and casted Any marketer would love to possess a him in his first Tamil movie Apoorva Raagangal: brand in which he would be comfortable to The Beautiful Raga (1975). The role however invest a figure around 160 crores, since at was that of a cancer patient, with low screen the back of his mind he knows that the presence. brand is so strong that it will break-even in the first week itself, and the brand goes a RAJNI: ―The value-add‖ step further and breaks even in the first day One of the major contributors to the immense itself, quoting Enthiran figures. Nothing is popularity of Rajnikanth is his humility and pious- more profitable than a brand that will sur- ness. Ego and starry airs are unknown to Rajni- prise you every time, as Rajni once men- kant. During breaks he hardly ever rushes to his tioned in an interview: ―Yesterday I was a air-conditioned makeup room. Instead, he pre- conductor, today I'm a star, tomorrow what fers to sleep on the sets, even without a pillow, I'll be, only He knows!" merely covering his eyes with a wet cloth. Eve- I am one of his biggest fans, the reason why ryone in the film unit from the spot boy to the I have written about him. When a Ma- director, share an equal rapport with Rajni, harashtrian goes over to Chennai, becomes which goes on to show his down-to-earth atti- the greatest star the Tamil film industry has tude. He never comes to functions with a reti- ever produced and inspires a Bengali to nue behind him and even prefers to drive his write about him, there must be something own car. He is known to be a very religious per- about him. That, is Rajnikanth for you. son as well. Apart from that, his philanthropic activates have also contributed a lot towards en- dearing him to his audience. His stand on public welfare issues such as the Karnataka-Tamil Nadu THE MARKSMAN 10
  • 12. Branding Paradigm for the Bottom of Pyra- mid Market -Sharad Deep, MDI Gurgaon Introduction The rural population in India accounts for 74.3 percent of the total population. With increasing consumption patterns in the rural areas, all marketing compa- nies have realized the importance of rural marketing in the last decade or so. A simple example demonstrating Figure 1: Rural Areas - Increase in usage from 2001-02 to 2009-10 this can be given by highlighting the Nirma vs. HUL scenario of the 1980s when Nirma took a huge market share from HUL‘s Surf by playing on lowest-priced brand factor. In response, HUL came up with segmentation strategy to win back part of its market share. Thus, HUL learned the hard way that different brands need to be created for different segments of the society. With diverse cultures, classes, creeds, languages and festivals rural India can be further divided into regional segments. These segments tell us the stereotypes that could be found in rural towns and villages. Figure 2: Rural India - Different People, Different Culture AUGUST 2011 11
  • 13. Branding paradigm for BoP markets Figure 3: Branding Paradigm Prof Rajagopal has given this branding paradigm for BoP markets. He says that brand passion is de- rived from behavioural factors namely personality, image, reputation and trust (PIRT) as well as marketing mix of the product. Because of this brand passion, there is a consumer pull effect mak- ing the brand more tensile. Also, since rural consumer is slow in accepting a new brand, Prof Ra- jagopal says that a new brand will face sluggishness in the beginning and later become strong when loyalty increases. He further says that the aggregate buying power of BoP market is very large al- though per capita sales may be lower. Whenever a company wants to penetrate a BoP market, it needs to keep the following things in mind: consumption needs, lifestyle and societal indicators. In order to inculcate brand loyalty, BoP brands need to focus on two things: low price strategies and standardized products. The reason being that the rural segment is highly price sensitive and also that they are not able to differentiate between many products. We now look at each step of the above mapping to understand the im- plications of branding at each level: 1. Knowing the Consumer The segmentation shown in Figure 2 tells firms that they need to adopt multi-brand strategy in or- der to cater to different consumer needs of different rural markets. This would be useful in fight- ing off the huge unorganized sector which has monopolized the Indian rural market. Firms need to conduct periodical surveys so as to identify the changing needs of rural consumers as they move from Innovators to Early Adopters to Early Majority because at each stage, the behaviour changes. THE MARKSMAN 11
  • 14. 2. Awareness At this stage, the consumer becomes aware of the brand. Firms need to follow ag- gressive branding – BoP brand strategy requires an attacking sales force, intensive advertisements and sales schemes. Rural people can be exposed to a new brand through the following media: 3. Information: Firms should extend the product line enveloping the mass market segments in or- der to provide more shelf space to brands and narrow down competition to emerge as brand lead- ers. In these markets brand equity is determined by the consumers in reference to perceived use value and value for money measures. 4. Inquiry: A consumer wants four things from a brand: 1. Affordability i.e. price advantage 2. Social status i.e. if his reference group will approve of the brand or not 3. Perceived Use value i.e. in what ways can he use the product 4. Quality confidence i.e. if the brand will serve him in long term or not 5. Consideration: For a brand to enter the consideration set of a consumer, it has to exhibit cer- tain favourable attributes like packaging, taste, smell, appearance, ingredients. The uniqueness of the brand in these aspects is desirable here. 6. Purchase: In order to entice the consumer BoP brands need to have better packaging. Rural peo- ple want ease of storing a package more than urban people. Moreover, keeping the various segments and their distinguishing characteristics (Figure 2) in mind, the sales people need to modify their selling techniques. 7. Enjoyment & Advocacy: Coca-Cola recently declared that it will sell its products in rural area where there is severe power shortages by using eKoCool – a solar energy driven chest cooler. Thus, Coca-cola is solving two purposes for rural people: It is providing a source which can keep things cold The solar energy can help light up their homes. By satisfying their basic convenience need of electricity, Coca-Cola has devised a win-win situation wherein it is doing CSR activity as well as enhancing its brand value. So, to conclude the discussion we can say that firms need to follow the above stated paradigm in or- der to succeed in the Indian rural markets keeping in mind the cultural diversity and propensity to spend of the rural consumers. AUGUST 2011 13
  • 15. TWO SIDES OF A COIN Pepsi Launches: "Lehar Iron Chusti, a fortified iron snack” for rural markets. Will it work? FOR Pranav Kumar C, IIFT Delhi Sangamjagalamudi, a village around 15 kms from Tenali town in Guntur district of Andhra Pradesh was in the news recently for the launch of a product which attracted attention from National media. More than 100 men, women and chil- dren gathered recently under a canopy on a narrow street to watch a promotional film from PepsiCo Inc. In the film, a teenage girl sits in her bedroom, tired and listless. Based on her symptoms—fatigue, breathlessness and an inability to concentrate on studies—her mother con- cludes she is anemic. She explains what anemia is, how to look for it (examine your tongue and the whites of your nails and eyes) and that iron-rich foods such as spinach, chicken liver, lentils and a squeeze of lemon can help. Then the pitch: Also helpful are two new snack foods from PepsiCo fortified with an iron sup- plement. One is a cookie; the other is like a cheese puff. Composition: Lehar Iron Chusti is an extruded snack and a sweet biscuit that are richly fortified by Iron. The products are made with wholesome local ingredients like grains, peanuts and jaggery. To sell the cookies and puffs, PepsiCo has hired a woman in each of the 84 villages targeted in Andhra Pradesh. The women go house to house each week to pitch the health message and are accompanied by a sales agent armed with the products.The project in India is part of a broader global push by PepsiCo into healthier snacks and beverages around the globe. The small, single-serving fortified-snack packs are designed for low-income emerging-market customers, selling for two rupees, or about four cents. The Target Audience- Women be- tween the ages of 15-49, 55% of whom are suffering from anemia. The objective is clear: to test-market affordable products that fulfill a health need of bottom of the pyramid (BOP) A billboard at a market near Athota, India, advertises consumers. The potential market size: snacks under PepsiCo's Lehar Iron Chusti brand. over a billion consumers. The bulk of PepsiCo's $60 billion in annual revenue still comes from products such as Pepsi-Cola and Lay's THE MARKSMAN 14
  • 16. TWO SIDES OF A COIN FOR potato chips that the company describes as "fun for you.'' But it launched a Global Nutrition Group last year and Chief Executive Indra Nooyi aims to more than double revenue from "good for you'' products to $30 billion by 2020. India will be the first country in the PepsiCo system to target the value segment with multiple products. In line with this they are looking for next billion consumers at the bottom of the pyramid. What are PepsiCo is adopting a twin the gaps? What are the offerings? And what's the business pronged strategy of Vertical model required to reach these consumers? Late management movement and selling them at guru C K Prahalad brought the fortune at the bottom of the Cheaper Price Points which is pyramid to the fore and many companies, primarily consumer likely to be a success in long goods marketers, have been looking at ways to make inroads run. into this market. Outside of India, Pepsi has ambitions for other healthy foods. In China, the company recently began rolling out "Quaker Congee,'' an oatmeal variant of the rice -based breakfast staple. PepsiCo is looking at launching a new beverage for some Latin American markets that combines fruit, oats and dairy. It also says it's trying to identify nutrient-dense staple crops in sub-Saharan Africa that can be used in locally produced snacks. Will it work? PepsiCo is adopting a twin pronged strategy of Vertical movement and selling them at Cheaper Price Points which is likely to be a success in long run. GOING VERTICAL: NourishCo, PepsiCo's vertical in partnership with Tata Global Beverages, has just rolled out its first product, a lemon-flavoured glucose-based drink, called Gluco Plus, in Maharashtra. It is priced at Rs 5. An innovation vertical has launched biscuits and snacks priced at 2 under the Le- har Iron Chusti brand. This line-up of healthy foods is targeted at women under 'Project Asha', PepsiCo's codename for Nooyi-commissioned plan to develop low-priced nutritional foods for the poor. While separate operations, sales and marketing teams have been set up for the verticals, Pep- siCo has further split its go-to-market (distribution) model into three divisions. There's a pre- mium arm for distributing Tropicana juices, Gatorade sports drinks and Quaker oats; a mid-rung one for aerated drinks like Pepsi and Slice and snacks like Kurkure and Lays; and a division cater- ing to mass products like Lehar Iron Chusti. This strategy to set dedicated sales teams helps in Communication and marketing for these products in a different way yields significant flexibility AUGUST 2011 15
  • 17. TWO SIDES OF A COIN when it comes to areas like packaging, as the firm can write labels in Telugu, a FOR language which is widely-spoken in Andhra Pradesh, on Lehar Iron Chusti. In short they are acting like local players, but offer products that don't compromise on taste or quality." CHEAPER PRICE POINTS This involves attempting to provide goods appropriate for the 330m potential buyers moving from the "C"-level demographic into the more affluent "B"-level socioeconomic category. Low- margin products like Iron Chusti will obviously not be profitable in the beginning, but PepsiCo is hoping that the products will achieve scale in about 24 months. The success of PepsiCo's core business of snacks, such as Kurkure and Cheetos at Rs 5 was a resounding success. They are the fastest growing among PepsiCo's foods arm and contribute 45-50% to the division's foods sales. More broadly, as three-quarters of PepsiCo's customer base buys goods both from its food and beverage stable, there are considerable possibilities for incremental growth, and hence, Lehar Iron Chusti provides ample of growth opportunities for the company in the long run. THE MARKSMAN 16
  • 18. TWO SIDES OF A COIN Pepsi Launches: "Lehar Iron Chusti, a fortified iron snack” for rural mar- AGAIN kets. Will it work? ST -Varun Tejwani,SIBM Pune Another blunder in the making: PepsiCo‘s Iron Chusti It has been reiterated in books, journals, magazines and by management gurus all across India that the rural consumer looks for value and not for price. Almost all major FMCG companies in their foray into the rural market have forgotten this important lesson in rural marketing. They have more often than not introduced small SKUs to capitalize on price points. Reduction in price with reduction in quantity or size does not increase value for the rural consumer. Hence, almost all of them have failed to capitalize on the growth of the rural market. Lately, I was surprised to see that PepsiCo is foraying into the rural market with its Iron Chusti snacks and cookies. To address the problem of iron deficiency in the rural India, PepsiCo India inspired by the global PepsiCo head Indra Nooyi in their ―noble‖ mission to transform into a ―good for you‖ products organization has launched these iron supplementing snacks and biscuits. The brilliant minds at PepsiCo have found a market gap and decided to address the need profita- bly. However, they have gone wrong in understanding the rural consumer. They believe that they are delivering value to the rural consumer. My question to them is- What is value to a rural con- sumer? To be more precise, what does a rural con- sumer look for in a snack? Is it protein fortification, glucose content, vitamins or is it something else? If he doesn‘t look for all these, then no amount of communication or convincing can lure him into buy- ing it. Let‘s take the example of Parle G. Parle G does not sell in the rural market because of the glucose con- tent or ―G mane genius‖. The rural consumer does not look for glucose content or mental benefits in a biscuit. It sells primarily because of the quantity it offers and at the price that it offers that quantity. ―G mane Genius‖ may work really well in the urban market but not in the rural market. Coming back to value in a snack for the rural consumer, value merely stands for 2 things in the rural market:  Quantity (filling ability of the snack)  Taste AUGUST 2011 17
  • 19. TWO SIDES OF A COIN AGAINST Quantity: Compare 100 grams of Parle G to 24 grams of Iron Chusti biscuit and compare 30 grams of Haldirams to 10 grams of Iron Chusti snack- it is quite clear that value is not delivered. Taste: Rural consumer still finds it difficult to adapt to the taste of a Kurkure which essentially uses all Indian spices. He is happy with the tastes of Haldirams Namkeens and Lehar Moong Dal because the origin of these namkeens is local. How do you expect the same consumers to like snacks the taste of which resembles cheese puffs? Lastly, if a rural consumer was looking to cure his/her condition of anemia, he/she would be advised by the doc- tor to eat spinach like Popeye and not to get 7 milligrams of iron from Iron Chusti snacks. In Rs. 5 of spinach, one can get a month‘s dosage of iron where as Rs. 5 of Iron Chusti can‘t even supply the daily requirement of iron. Hence PepsiCo has failed to deliver on all counts this THE MARKSMAN 18
  • 20. THE BURGEONING RURAL MARKET Asim Kumar Verma, Kritika Chandra (IMT Nagpur) The Indian economy which was once dependent on foreign aids and supplies is growing with a fast pace of 8 %. The huge In- dian population which was once a curse for the whole nation has given immense opportunities for all the marketers of the nation. The rural market that was untouched till recent years has become lucrative and is now attracting ma- jor companies like ITC, HUL and Godrej which are investing huge funds to tap the market. The whitepaper published by CII-Technopak estimated the growth of the rural market at 25% a year with the size of the market standing at US$425 billion in the year 2010-11 which was US$220 billion in 2004. The Union Budget of 2010-11 also increased the fund allocation of National Rural Employment Guar- antee Act to US$ 8.71 which says a lot about the government focus to boost the rural economy. The Indian rural market has given a unique chance to marketers to enhance its sales and spread it wings to few areas that were inaccessible few years back. Hindustan Unilever Ltd which started ―Shakti‖, its rural initiative in the year 2001 has been able to reach 80000 villages in 18 states. The re- sponse of the people in these villages has been overwhelming for the company. The recent re- port released by Nielsen India said that the de- mand of personal care products grew at faster rate in rural market than the urban market. Fig 1. A Typical Rural Haat Insight into Rural Customers The intensified competition and moreover stagnant phase of growth has forced companies to pene- trate the urban market. The improved lifestyle and rise in purchasing power of the rural consumer have further encouraged the markets. The breaking up of joint families into nuclear families has re- sulted in demand of consumer durables like TV, refrigerator and washing machines. Though most of the products released by companies in the rural market have been the original version but in most of the instances they have been forced to adjust them according to the needs of the rural consumer. The unique uses developed by the consumers in the villages have also forced them to do the same. The popular black hair dye of Godrej was being used by the villagers in Raipur to polish their cattle so that they could fetch higher prices in the cattle market. In another situation the lamps ignited by kerosene were comfortably adjusted to use mosquito repellant mat Good Knight. AUGUST 2011 19
  • 21. Even the consumer durable like washing machine has been put to use for unintended usages. In some regions of Punjab and Haryana, it was used to churn the buttermilk to make lassi. Winning Strategies The company focusing on the rural market should tweak its four P‘s of marketing to win the market share. The rural market prefers simple and easy product with core benefits speaking volumes about the product. The packaging needs to be convenient and should be dura- ble to make it suitable for long distances. Sachets and smaller stock keeping units (SKUs) have really revolu- tionized the local rural market. The consumer durable goods should be easy to use and instructions should be well explained in the local language. LG was quick to analyze it and launched Sampoorna television with Devanagari script and ability to catch weak signals, which reaped huge success for the company. Fig 2. Washing Machine being used to make Lassi The pricing holds an important key among the four P‘s for a rural market because the rural con- sumers are considered to be the most price sensitive. Each and every customer evaluates the price of the product with the value derived from it. Some of the major companies like HUL, Godrej and Tata reduced its stock keeping units to cater to the market. Godrej introduced its leading soap brand Cinthol in 50 gram packs with a price of Rs. 4-5 and HUL launched Lux in 25 grams pack especially for the markets of Bihar and UP. The distribution channels of the company should be made robust to tap the rural market. The distributor should be willing to go till the last mile to deliver the product to the customers. The Kosi floods of 2008 in Bihar had jeopardized the distribution channel of the major companies giv- ing a unique opportunity to the local bakery & biscuit manufacturers. To avoid such situations the companies should have local warehouses and try to decentralize the distribution as much as pos- sible. Many companies have been able to build penetrative distribution channel that has catered the rural market well. Here, the marketing strategy adopted by Ajanta is worth mentioning which sells its toothbrushes even through local betel-shops and chemist stores. Rural market holds unique untapped opportunities for the marketers. But the winning strategies adopted in the urban market might not be a success in the rural market too since the customers are completely different with different requirements. Moreover the awareness and increased pur- chasing power is making them well informed customers with unique needs. One who is able to deliver value at minimum cost will be the winner in the long run. THE MARKSMAN 20
  • 22. MARKETING AND REVERSE MIGRATION: URBAN TO RURAL Babita Singla (Assistant Professor)– babitasingla.bfcmt@gmail.com Saurav Bansal (Lecturer)– sauravbansal.bfcmt@gmail.com Punjabi University, Patiala Executive Summary Retail‘ is the new tale to tell in India now-a-days. If we view the consumer markets as a Pyramid (standing upright), people at the Bottom of the Pyramid (BOP) are the main constituents of these markets. As the global markets have begin to slowdown, Mr. C. K. Prahlad suggested that four billion poor can fuel the engine of next round of global trade and prosperity, and can also be a source of innovations. Sadly people at BOP have been ignored by the companies by considering them irrelevant, have a low disposable income, hence low buying power. So, companies are in continuous search to find the answer for question i.e. How best to tap the op- portunities available in this segment? This paper is written with special focus on Buying Behaviour of people at BOP. It is imperative to understand the needs these people have before jotting down any marketing strategy as needs leads to demand, which in turn in satisfied by the product or service. Characteristics of Market at Rural Zone Highly Price Conscious – Generally, price is sole determinant of selection in this cate- gory as people at BOP mind every penny they spent. Hence, they look for value for money. Generic Product for Basic Needs – Needs of these people are very basic in na- ture, hence they also require very generic product to satisfying their needs. They are not fascinated by each and every product. Low Brand Loyalty – Generally, no brand loyalty is observed in this market because they do not have that much money to follow a particu- lar brand. In some cases, where the brand is very cheap, they do exhibit some amount of brand loyalty like for example in case of India i.e. Nirma Washing Powder. AUGUST 2011 21
  • 23. Challenges at BOP Main challenges in this market can be summarized as:- Illiteracy prevailing in this section of society becomes a challenge for the companies to communi- cate their value offerings to them. Counterfeit or Look alike Goods makes it possible for companies to fool them. That is why we see many companies just changing a letter in the brand name or creating a name with the same ascent of that of a famous brand. Unorganized Market i.e. small ―Haats‖ and shops at every nook and corner presently caters to the needs of the people at BOP. Lack of Knowledge and Capabilities about market, its synergies and 4 A’s – Availability, Affordability, Awareness and Access poses a great challenge. Huge Potential – In terms of market size and in order to inject a new life to the or- ganization, this market offers a huge potential for growth. Poor live in high cost/low quality economies. With re- spect to India, potential of this market can be summa- rized as under:- Strategy of Execution To target and tap this oppor- tunity a different mindset is required. A standardized ‗western‘ marketing mix offering cannot be employed in this scenario. So, we will understand their behaviour with the help of Engel – Blackwell Miniard Model. THE MARKSMAN 22
  • 24. The exposure to information regarding a general product in this segment is very low, hence very little attention regarding the communication. They accept what is provided to them and are guided by their past purchase behaviour. This in turn becomes their con- sideration set and a part of their memory. Need Recognition- Regu- lar Exposure-Low Search- Lim- Stimuli Influence-Low Beliefs- Attention-Low ited Strong Alternative Attitude- Comprehension- Mem- Evaluation- No Positive Low ory Intention-To buy product, Acceptance-High Purchase Deter- mined, Conven- External Search- Limited ient outlets Retention-High Outcomes Dissatisfaction Satisfaction Figure: Engel-Blackwell Miniard Model As this market is characterized by daily wage earners, whenever the need arises to buy a particular product, they go for very limited external search or no search at all regard- ing the options, and hence there is no evaluation. They go for Internal Search i.e. their memory. Now, if a particular product satisfies their needs, they become the regular user of that product. They also spread positive words about the product which serves as ex- posure for the product among their peer group. AUGUST 2011 23
  • 25. Detailed Marketing Strategy encompasses: Anti-Precision Pricing: Precision Pricing involves truly understanding the tradeoffs be- tween price, volume, and profit, and then systematically identifying highly targeted oppor- tunities in which well-managed pricing can increase profit and boost growth. What it re- quires is a rigorous, consistent, and insightful focus on that basic but critically important question: How much will customers buy of my product, and at what price? Fig: A Typical Precision Cloud Many companies offer their smaller customers net prices that are as good as or better than those offered to large accounts. Precision pricing helps dispel such clouds. Different customers frequently place different values on products and services, as well as on spe- cific components of an offering. The keys to capturing such value are: Fig: Keys to Capturing Value THE MARKSMAN 24
  • 26. The companies need to take the exclusion decision in a very calculated manner since negli- gence in this aspect can lead to loss of market share. Group appeal rather than targeting an individual can lead to success. Products offered to BOP markets must have localized content and firms need to capture larger volume leads to larger profits. Conclusion Therefore the strategy should be culturally sensitive and relationship based. This can in- clude:  A unique business model tailored to the local market.  Identification of the real needs of consumer and product adapted to them.  Remove the infrastructure problems faced by BOP consumers. Adopt a participative approach. The above framework is general and should be tailored as per the needs of the company and type of the product. References: India's Rural Poverty and Possible Solutions – Y S Rajan The ‗Bird of Gold‘: The Rise of India‘s Consumer Market – Mckinsey Global Institute, 2007 Prof. Dr. Hermann Simon, (2003), ―Pricing: It’s the process – The call for a Profit Renaissance‖, Simon Kutcher & Partners, October 7, 2003. James P. Andrew, J. Kevin Bright and Henry M. Vogel, (2002), ―Precision Pricing for Profit, Growth and Advantage‖, The Boston Consulting Group, September 2002. Alex Pratt, (2007), ―The Price is right (or is it?)‖, Director Publications Ltd., February 2007. Anderson, C. 2005. Long Tail vs Bottom of Pyramid International Marketing At The Bottom Of The Pyramid, Richard Fletcher, University of Western Sydney Working with the Bottom of the Pyramid: Success in Low Income Markets: Confederation of Danish Industries: Copenhagen V. AUGUST 2011 25
  • 27. BOOKWORM Be The Elephant: Build A Bigger, Better Business by Steve Kaplan Be The Elephant is the second in a series of books written by Steve Kaplan. This book focuses on growing businesses of all sizes. However, most of the information focuses on small businesses that want to grow larger. What will make you buy? OUR RATING Three things make this book a worthwhile investment  It is concise: Usual business books like to over-explain things. Be the Elephant luckily is less than 220 pages.  It provides tools: Helpful, simple tools for business analy- sis like Calculators, Business Success Quotient (BSQ), Steve Kaplan is founder of The Business Assessment Model(BAM). Difference Maker Inc., which pro-  Website - the book is backed up by a website (http:// vides a wide range of business www.differencemaker.com) that has templates for the tools to help companies of all tools. sizes succeed.Kaplan developed and used his Bag the Elephant strategy as the owner of a small Why wouldn‘t you want to buy? business, first landing contracts  The coverpage is coated thick with exaggerated superla- with one of the biggest Elephants tives and overpromises of success like: A foolproof road of all, Procter & Gamble, and then map to success. Don't grow your business without it. many other big customers before  The statement (whether) "you run a $5 million consult- selling his company. Over the last ing business or a three person bakery" then this book decade, Kaplan has refined his will help you is an exaggeration as someone running a $5 strategy with 23 businesses he has million business has far past what this book has to offer. led and the more than 100 com- panies with which he has con- sulted. oes ing growth g Know more about the book Key Quotes: andin g still. Avoid g.‖ there‘s no st wing or dyin ―In business, ‘re either gro u have at:  the laws of n ature; you . To last, yo against ble, b ut necessary ot only desira  ―Growth is n ame.‖ e not the s Available in SIMSR library. to grow.‖ being a leader ar owner and Classification no:658.049 ―Being an THE MARKSMAN 26
  • 28. Mr. Shankar Subramanian—Product Manager, Onida It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay Mansukhani started a company called Onida with just a goal of manufacturing televi- sion sets and going beyond convention. With the passage of time, superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a household name. The common perception was that Onida was a focused TV manufacturer. But then with a knack for spotting a gap in the market, Onida realised that there were undis- covered needs and wants in other categories of consumer durables as well. Discover- ing these latent synergies enabled Onida to provide customers with a wider range of products under the ONIDA brand including washing machine, air-conditioner, DVDs, LCD, mobiles and LEDs. Mr Shankar has over 11 years of experience in the area of sales, marketing and business development in the white good sector. An aluminus of IIM Calcutta, he is adept in conceptualizing Strategies for business development and developing new market segments for maximizing sales growth. Having worked in BEN Q, YAAS Wholesale India Pvt. Ltd., Samsung, Bluestar, LG Elec- tronics and now Onida he has significant experience of handing large business operations profit center management at all India level. Markman: How do you think customer demands have evolved over time? A. Customer demands have evolved based on the life cycle of the product. From window ACs, the customers are now moving towards Split ACs and from CRT to LCD TV. The demand is transforming towards more technologically advanced products that define their lifestyle. Emphasis is also being given to features such as energy –efficiency and convenience. AUGUST 2011 27
  • 29. Marksman: What are the challenges in the current consumer durable industry? A. The consumer durable industry is flooded with choices for the consumer and the major challenges include product and feature differentiation and cost- effective communication to the customer. The customer today has multiple options within the same category and it is challenging to not only focus on acquiring new customers but retaining the old ones. The affordability of the customers has in- creased over the past 10 years which provides an extra stimulus to the demand prevailing in the mar- ket. The company and the industry also has to face challenges from the retailers‘ end. In the competitive times of today channel management is emerging as another big challenge. It is imperative for the com- pany to provide adequate margins to the retailers while ensuring that customer demand and aware- ness about the product and not retailer margins is the driving force to generate sales. Marksman: Onida has done away with its all famous Devil and the tagline ‗Neighbour‘s envy. Owner‘s pride‘. What was company‘s rational behind this decision? A. The devil was launched at a time when the industry focused more on product based advertising and at the time of liberalisation when owning a television was considered a big thing. However with the entry of foreign players product differentiation became more challenging and neighbours no longer benchmarked their neighbours with the choice of appliances From the more competitive approach, the brand is now focusing towards the softer aspects of things which is getting quite visible in our communication strategies and processes. We are trying to position the brand as one that understands the customer‘s needs through our tagline ‗Tumko Dekha to yeh de- sign aaya‘ Marksman: What are the most promising products in the consumer durable industry? A. LCD TV are expected to grow at the rate of 30% while Air Conditioners and Microwaves are emerging as the next best promising goods expected to grow at the rate of 20% over the next 5 years. These products are emerging as the key growth drivers for Onida. Marksman: The current market penetration of LCD TV and ACs is only 2%. How does Onida plan to overcome this challenge? A. We have launched a new range of LED and LCD tv‘s in order to gain more penetration into the market. Onida LED, with iCare technology is easier on the eyes due to being reflection free and is also tougher than most other LCD‘s/LED‘s available in the market. With such product offerings, we aim to gain a stronger footholds in the lucrative LED/LCD market. With regards to the AC segment, we have launched world‘s 1 st pre-cool AC, wherein you can switch on your AC through a simple SMS even while you are away from home, and by the time you reach back home, your room is well cooled. With this we aim at targeting the more affluent customers who value a pre-cooled room over anything else. THE MARKSMAN 28
  • 30. A RECAP OF INTERFACE EVENTS Event: Guest Lecture-Wipro Consmer Care Speaker: Mr. Abhishek Jha Regional HR, Wipro consumer care Date: August, 2011 Venue: Seminar Hall, SIMSR Event: Guest Lecture-Onida Speaker: Mr. Shankar Subramanian Product Manager-Onida Date: July,2011 Venue: Seminar Hall,SIMSR Event: Nissan Student Brand Manager Contest Launch Guest: Mr. Dinesh Jain CEO, Hover Automotive India (HAI) Date: June,2011 Venue: Red Auditorium,SIMSR The Japanese car maker NISSAN announced the second edi- tion of its ‗Nissan Student Brand Manager‘ (NSBM) Program 2011 in India and the press release of the event took place on 20th june,2011 in SIMSR. Targeting the most talented young student crowd in the coun- try, Nissan has invited over 150 colleges spanning 15 cities across India to participate in their brand management contest that is looking out for 20 Student Brand Managers‘ from a total of 1200 shortlisted applicants. The 20-selected NSBMs‘ will work under Nissan for a period of a six (06) months (July to Dec‘2011) and will play a key role in bringing the Japanese car brand closer to both the student community and the public in general through their innovative marketing ini- tiatives. AUGUST 2011 29
  • 31. Google vs. Facebook Google and Facebook get personal in battle for social networking rewards. It is one month since the launch of Google+, a belated attempt at a social networking tool that invites users to follow friends' activities in their news feed and share favorite content by marking it "+1". If this sounds familiar, it shows the extent to which Google is playing catch up with Facebook, which is brew- ing a public offering next year that could value the firm at $100bn and, critically, has positioned itself as the gateway to the web for many of its 750 million users. Though Google+ is an intelligent attempt at a social networking tool, it seems a typical Google product in that it is brilliantly, heavily engineered but lacks the human focus required for a social network – the fuel that has propelled Facebook to 750 million users. Google and Facebook are both keen to burnish their scientific credentials, ultimately the real battle is over cold, hard cash. Google made 97% of its revenues, or $32.3bn, in the past 12 months from advertising. EMar- keter, meanwhile estimates that Facebook's largely ad-generated revenues will grow from $0.74bn in 2009 to $5.74bn in 2012 – yet the site has hardly begun rolling out truly personal- ized, targeted advertising. If there is any of Google's lunch to be eaten, it is here. Why Reebok bonds well with The Masses and the classes? Reebok‘s marketing strategy to associate itself with the cricket frenzy Indians, instead of banking on the aura of international sports stars to push its wares — which Nike, Adidas and Puma tried doing unsuccessfully in India — proved to be a resounding success. Thanks to its association with cricket, Reebok enjoys total brand recall and stickiness in the minds of consumers. 01 THE MARKSMAN 30
  • 32. Global beer compa nies battle it out: Global brewer SABM SABMiller goes ho iller took its $10 bi stile with $10 bn Fo shareholders on W llion bid for Austral ster's bid ednesday just days ia-focused Foster's before the Australia Group direct to show flagging profits n brewer's annual re . The cash offer at $A sults are set to- proach in June, which 4.90 a share was un was rejected by the changed from SABM Foster's board. iller's first ap- BCG hires McKinsey to advise it on how to become number 1 Strategy consulting major Boston Consulting Group (BCG) announced today that it has hired the services of the world‘s number 1 strategy consulting firm McKinsey to advise BCG on how to re- place McKinsey as the number 1 strategy consulting firm. McKinsey has readily agreed to serve its new client as professionally as possible. Officer's Choice , McDowell's No liquor chart 1, Celebration, Honey Bee and Old Tavern top Indian liquor swep global t the 2010 list of the first five spots top-10 global spir almost entirely on its brands in volu domestic sales. A mes growth, taking Choice came in as llied Blenders & D home the fastest volum istillers' (ABD) O London-based rese e generator with fficer's arch firm The IW 2.98 million nine -li SR said in its Aug tre cases added in 2009. ust report. The br 2010, and was ranked fo urth in Nestlé‘s mint Polo launched with a 'hole new fashion' Ever heard of designer polo mints? As bizarre and whacky as it may sound, it‘s true. Nestle has tied up with Goa-based designer Wendell Rodricks for its confectionary brand Polo's stylized look. So it's not 'The mint with a hole' but a 'Hole new fashion' that has taken over. THE TRUTH AB OUT THE GOOG Disaster LE-MOTOROLA DEAL: It Could E nd Up Being a Google is now com peting with its partne kind of business th rs. And hardware m an Google's core bu anufacturing is an en siness. And hardwar tirely different margin commodity e manufacturing is business. And Motor a crappy, low - company by 60%. A ola is massive--Goo nd the deal appears gle has just increase to be purely a defens d the size of its ive move, not an offe nsive one. AUGUST 2011
  • 33. Map the crossword with the visual and textual clues. Across: Down: 1. Asocial networking site aimed at teenagers 2. Manufacturing clothing, fragrance, and fash- where are ‗credits‘ and ‗pixels‘ used as cur- ion accessories endorsed by Emma Watson rency 3. His collections of clothing and accessories 4. The unique market research firm's logo has for both men and women are usually identified this unique symbol by the presence of his multistripe signature 6. An automobile manufacturer whose name somewhere on each item. means double dragons. 5. The company which celebrated US landing 7. The Hindu and Jain mythology refer to this on the moon with "Its ugly but it get you company's name as the centre of the universe. there" 8. Hand block prints from Jaipur which is de- rived from the Sanskit word ―to play‖ 9. Mascot of which brand of cookies? THE MARKSMAN 32
  • 34. CALL FOR ARTICLES SEPTEMBER 2011 Articles can be sent on any one of the following topics*: a) Hero Honda Re-branding to Hero Moto Corp- Do you like it? b) How would you market " Indian Grand Prix " to cricket fans c) Marketing of Luxury Goods d) Faith Marketing- Strategies of marketers selling spirituality and related products and services. *Please ensure that there is no plagiarism and all references are clearly mentioned  One article can have only one author.  Your article should be from 500-600 words and MUST be replete with relevant pictures that can be used to en- hance your article.  Send in your articles in .doc/.docx format with font size 11 (Arial) to: interface.newsletter@gmail.com  Subject Line:Your Name_Institute Name_Course Year.  Kindly name your file as:Your Name_Topic The best adjudged article will be given a winner's certificate with the noteworthy articles being published in the Septem- ber issue and on the interface website / Facebook page. Deadline for submission of the articles: 11:59 PM , 10th Sep- tember2011 Deadline for submission of the articles: 11:59 PM , 7th August 2011
  • 35. The marksman is the newsletter of INTERFACE , the Marketing Club at K J Somaiya Institute of Management Studies and Research, Mumbai. Images used in the marksman are subject to copyright. To subscribe to "The Marksman", Follow the link:- http://interfacesimsr.weebly.com/the-marksman.html OR drop in a mail to interface.newsletter@gmail.com Subject line: Subscribe: Your Name_Institute Name_Course Year Contact us at: interface.newsletter@gmail.com Website: http://interfacesimsr.weebly.com Follow us at: http://www.facebook.com/simsr.interface THE A-TEAM COVER STORY SECONDARY STORIES ALL ABOUT BRANDS Divya S Hetal G Pramit G Shelani A BOOKWORM TETE-A-TETE & REWIND COVER PAGE Rajat P Namita S Vibhav S Niyati C Rishi M Hinal S Tilottama S TWEETS BUZZ DESIGN Kavita S Rajat P Namita S Rishi M Shelani A Rajat P