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Pan IIM Marketing Digest

GLASS In this edition
Dear Readers Measuring the Effectiveness of the Humour Quotient
in Indian Advetising ……3
It gives us immense pleasure to bring out the first ever PAN-IIM marketing digest, with a joint effort by the
marketing clubs of IIMs A, B, C and L. Influencer Marketing ..…..6

If you take time to look around, you would observe the importance of marketing in every sphere of your life. Implicit Positioning and Surrogate Advertising .........9
Starting from the time you get up in the morning, the brush, toothpaste you use, right up to the time you crash on
your bed at night, just think of those countless brands that shape your daily lifestyle. It‟s a continuous tussle Fake IPL Player: Redefining Marketing ..…..11
between those myriad brands laid across the horizon of consumer observation span. In a season where marketers Effective Multi-tiered Promotions:
are leaving no stone unturned trying to grab consumer attention, marketing automatically assumes utmost impor- Lessons From Santoor ..…..13
tance. The world is brutal. It‟s no longer about marketing your product right. It‟s basically a requisite for sur-
vival. If you don‟t do it, your competitors will. And the consumers have plenty of options. So, basically if you 4P's of Indian Theatre Marketing ..…...17
don‟t sell, your competitors will.
Neo-Political Marketing ...….21
We decided to come up with a collection of choicest articles contributed by students and industry personnel, which
would highlight the trends of contemporary marketing. And for the same reason we decided to call the digest, „The
Strategic Marketing for Educational Institutions…..25
Looking Glass‟, because we feel it will give a true reflection of marketing, and the direction it is taking in today‟s
scenario. The articles touch a wide array of topics which have assumed importance in the recent past. How has
humour been used effectively by marketers? How do you sell educational institutes? What exactly did the Fake Welcome to Marketing, the third epoch! ........28
IPL Player do for KKR? How do advertisers resort to surrogate advertising? What are the trends in online mar- Sidestepping the Commoditization of
keting? These, and many more articles inside would keep you engrossed as you go through the pages, we hope. Disruptive Innovations …...30

There are those who envision, and then there are those who work to make the vision a reality. We are proud to Sales Role in Fixed Income Securities Market ……32
say that we had a team which did both. We would like to thank all those who were involved taking the digest to
the completion stage. There was a tremendous amount of co-ordination and synchronization put in by the market- Valuation of TV Advertising …….34
ing clubs of the 4 IIMs. At every stage of development we also received immense support from the faculty in the
form of guidance and encouragement. Also, a very special thanks to Mr. Prakash Bagri, Director of Marketing, Ogilvy and Mather Trivia …….36
Intel South Asia, for sharing his insights on the evolution and future of marketing, in the digest.
Is Recession the time to tighten Ad Budget? …….37
In future we plan to evolve by bringing in greater participation from the industry and experts and initiating wider Low Cost Customer Acquisition
distribution. Please do send us your feedback at looking_glass.mag@gmail.com. Strategies for E-businesses …….39

Yours Truly State of the Market -A Comparative Study …….42

Mayank Jain, Prasad Gopal ,
Robin Joseph , Garima Mamgain Does Green Marketing Sell? ……..44

Men's Cosmetics ……..48

Editors Design Pan IIM Team
Mayank Jain (IIMC) Yatish Misra (IIMC) Piyush Mehta (IIMC) Chayan Mukhopadhyay (IIMB)
Prasad Gopal (IIMB) Prativa Lama (IIMB) Brijesh Unithan (IIMC) Gautam Attravan (IIMB)
Robin Joseph (IIMA) Rajkul Fulzele (IIMA) Mafla Mudgal (IIMC) Shreshth Sharma (IIMB)
Garima Mamgain (IIML) Rishi Varshney (IIML) Nikhil Joshi (IIMC) Meenakshi Prasad (IIML)
Pratik Prakash (IIMC) Saikat Mondal (IIML)
Sanglap Bannerjee (IIMC) Ganesh PR (IIML)
Abhishek Mohan (IIMB) Manoj Kumar Kamble (IIML)
PAGE 3 Measuring the Effectiveness of the Humour
Quotient in Indian Advertising
In this article, we explore the hu- Humour can come in many forms
mour quotient in Indian advertis- and the choice of the appropriate
ing through the lens of certain type is highly dependent on the
television ad campaigns that have target audience, the cultural bias,
tickled the consumer funny bone the choice of advertising medium
in order to evaluate the effective- and the product itself. Some of
ness of such campaigns. We di- the more popularly used forms
verge from the traditionalist body are:
of literature that brackets hu-  Personification: This is
mour in advertising as risky and where inanimate objects assume
at best, as effective as other ads. human characteristics and the
Our contention is that an ad inherent humour in observing
campaign based on humour such behaviour is used to high-
stands out from the crowd and light some quality or the desir-
captures the consumer mind- ability of the brand. One such
share. example is Pepsi‟s „Oye Bubbly‟
campaign in which various ob-
Our contention is that INTRODUCTION jects such as the car stereo and
an ad campaign based the garage are shown coveting the
When using humour to advertise Pepsi bottle.
on humour stands out
a product, the main challenge for
from the crowd and  Exaggeration: Here certain
marketers is to link the advertise-
captures the consumer attributes of the product are
ment to the underlying brand so
magnified out of proportion like
mindshare. as to translate consumer enjoy-
the Fevikwik ads where the fish-
ment to consumer purchase. This
erman uses Fevikwik on a stick
linkage is questioned by numer-
to catch fish, trumping the so-
ous researchers with the distrac-
phisticated fishing gear of the
tion of the consumer from the
person next to him.
brand quoted as the chief flaw of
such a strategy. We diverge from  Slapstick: This particular
this view – our contention is that brand of humour deals with the
the industry context and basis of
ludicrous/exaggerated and pre-
competition is also critical to the
nature of advertisements used. sents situations where the hu-
Our frame of analysis would be morous aspect of the ad, far from
campaigns that are recognized for being subtle, strikes the viewer in
their innovative use of humour the face, the Chlormint ads being
including Fevicol and Fewikwik, a prime example of this.
Happydent White, Vodafone Zoo-
zoos, Idea Cellular, Frooti, Tata
Other forms include sarcasm,
Indian advertisements, Sky, Sprite.
comparison, pun, understate-
in the past, have
ment and irony. However, there is
mostly derived their TYPES OF HUMOUR a strong cultural context for such
humour from the in- Back in the 1960‟s, a golden rule advertisements. Individualistic
terplay between multi- in advertising, propagated by the cultures like the US and UK typi-
ple characters. founder of Prentice-Hall, was to cally feature advertisements hav-
never mix humour and advertis-
ing one or two dominant charac-
ing. Today, with the proliferation
of product offerings, humour is ters while in more collectivistic
increasingly being looked upon cultures like Thailand, ads re-
not as a distraction that trivial- volve around groups. Similarly,
izes the product, but as an effec- the degree of uncertainty avoid-
tive means of distinguishing the ance and the amount of mascu-
product from the crowd and line dominance in the culture of a
drawing the attention of con-
country are key factors in influ-



influencing the type of humour that can be spectrum – be it the group oriented Fevicol
successfully used in advertisements, with truck ad showing people stuffed into a truck,
countries high on these two parameters tend- or the more individual oriented Fevikwik fish-
ing to prefer slapstick or direct humour to erman ad, from the slapstick Akai TV ads of
subtle nuances and double entendres. old to the more subtle Camlin Marker ads, to
the extent that even potentially controversial
Analyzing the Indian advertising scenario ads like the Axe series have found acceptance
keeping this cultural context in mind, certain in India, which is viewed to be conservative.
key trends can be identified. Given the tradi-
tional family oriented culture of India, Indian Case Studies: We examine the following ad-
advertisements, in the past, have mostly de- vertising campaigns with a view towards illus-
rived their humour from the interplay between trating the different types of humour that
multiple characters. Also, in the past, humour works in the Indian context and also to meas-
has tended to be largely slapstick, based on ure the effectiveness of these campaigns
filmy spoofs and ridiculous situations. This is along multiple dimensions: Amaron, Frooti,
part, can be attributed to the diversity of cul- Axe and Max New York Life Insurance. Our
tures and languages found in India. Humor- choice is driven by the different types of hu-
ous ads, therefore, must tread the thin line mour used in each of these campaigns.
between keeping the cultural idioms of their
target audience in mind and taking care not to Amaron (Amara Raja) batteries: The iconic
offend the cultural sensibilities of any group. claymation advertisements with the catchy
Slapstick offers an easy way out with situ- slogan of „Lasts Long Really Long...Ting Tong‟
ational humour having a broader reach while captured the imagination of the public and
also ensuring that the punch line is not lost acted as clutter busters in 2002. The „Hare
on the audience. and Tortoise‟ ad and the „Kumbhakarna ad‟
were aired on Doordarshan and other satellite
channels and brought in tremendous brand
awareness for Amaron batteries – a new en-
trant into the automotives battery space in
Over the years, there has been a gradual evo-
lution in the use of humour in Indian adver-
tisements. The most obvious change has been Interestingly however, the expected spurt in
the increasing use of humour with advertising sales did not materialize. The product was a
agencies increasingly trying to grab the atten- low involvement one with incumbent advertis-
tion of consumers through their funny bone. ing focussing on the toughness and macho
image of the car battery. The dominant player
In 1993, only 28% of commercials were hu-
at that time, Exide, was well entrenched and
mour-based. By 2001, at least 46% tried to Amaron did not manage to make a dent in
incorporate some form of humour. And while their sales. The ad agency – O&M went back
in most countries, funny ads have largely to the same claymation studio in 2004 to
been associated with low-involvement prod- come up with a follow up, the „Pandu Mangal‟
ucts, in India, even high-involvement products ad. The uniqueness of this ad was the univer-
like televisions and insurance have tried their sal nature of the humour – the bumbling cop
in pursuit of a wily thief was instantly recog-
hands at humour.
nized and appreciated across all segments of
A more subtle change that has been taking people. We also theorize that the humour was
place is in the type of humour employed. well received as it relied on simple age-old
From pure slapstick, ads are moving towards themes and had powerful visual imagery. This
more intelligent comedy, with a more individu- ad consolidated Amaron as a powerful brand
alistic bent, be it the Vodafone Zoozoos, which and was a platform for their explosive growth
cleverly depicted a variety situations, each post-2006. In 2006 Amaron reverted to a
with some link to a feature offered by Voda- stereotypical performance based campaign
fone, or the Fasttrack „Move on‟ commercials, using racing stars like Karun Chandok and
which perfectly capture the changing nature Narain Karthikeyan. Our take is that the hu-
of Indian society today. India today is at a mour based advertising helped establish the
crossroads, between its traditional past and a brand awareness but did not add to the top-
more modern future, which perhaps explains line due to the low involvement of the car
the success of ads across the entire cultural owners in the buying decision and the lack of
product differentiation as the „Lasts Long‟
promise held true de-facto in the business.



Frooti: The Digen Verma ad blitz that lasted Axe is by far the naughtiest brand in India
for 15 days in February 2001 catapulted the and is targeted at the male aged 16-25. The
brand into public imagination and generated a ads highlight various situations where the
tremendous buzz across the country. The cam- guy, usually an ordinary next door
paign was centred on a faceless college going neighbour kind of chap rather than a
guy called Digen Verma worshipped by his hunk, gets pursued by different women.
friends, girls and even peons – in general eve- Seduction is the dominant motif here, with
ryone who knew him except for the stodgy old the women making the first move – a bold
college professor. The teaser campaign com- idea for Indian audiences. Yet, it has cap-
bined with the new caption for Frooti – „Just tured the pulse of its target audience per-
Like That‟ was aimed at repositioning Frooti fectly.
from a kids drink to one for the youth. Hence,
a rebellious theme was adopted in the cam- Max New York Life: When Max New York
paign. came out with their advertisement featur-
ing an overzealous dad with his young child
The last series of ads in this campaign show as he exhorts the child to repeat words of
Digen ordering Frooti (of course Digen himself increasing complexity, consumers sat up
is not shown on screen) – this causes pande- and took notice. The advertisement poked
monium across the country and everyone fun at Indians who have a propensity to
switches to Frooti immediately! This campaign push their children into various activities
was unique in the effective use of suspense at a young age. Interestingly, the humour
(watch this space approach) and humour in in the ad was well received – wry humour
engaging consumer attention through various had worked on Indian screens after a long
innovative forms of media (messages telling while! The ad demonstrated two things –
Digen to remove his car from the parking lot one that Indians were willing to laugh at
were flashed in theatres, bus stops had posters themselves and two, high involvement
asking if Digen would be on the next bus and products could be advertised using hu-
so forth). mour.
A look at the sales figures show a marginal in- The sales of new policies shot up from the
crease in the year the campaign was aired fol- slowdown in October – further the weighted
lowed by steady increase in sales – the market new received premiums too shot up. The ad
share decline was halted by this campaign had worked its magic. Max New York fol-
though. Sceptics however claimed that the Di- lowed it up with another humorous ad in
gen Verma persona had become more famous Apr-2009, this time poking fun at the re-
and had marginalized the brand. Later, Frooti tired Indian male.
switched to their old theme of „Fresh and
Juicy‟ which did worse than the Digen Verma CONCLUSION
campaign – hence in comparison the use of a
unique style of humour proved to be more ef-
Thus, the use of humour, in products
fective for Frooti.
where consumer preferences play a vital
Axe: Our inclusion of Axe is a little controver- role in selection, not only helps bring the
sial as its ads have straddled a thin line be- brand into the consumer‟s consideration
tween sexism and naughtiness in terms of the set through increased brand awareness
humour. We study it due to the unique nature and recall, but also appears to translate
of the advertising – the same campaigns are directly to an increase in sales.
aired worldwide and there has been no attempt
to tone down the humour or modify it in any
Kaushik Sriram is a 2nd year PGP student at IIM Banga-
way for India.
lore. He holds a Bachelors degree in Electronics and Communi-
This dispels the notion that Indians are con- cation Engineering from National Institute of Technology (NIT)
servative in their humour – of course the mar- Trichy and can be reached at kaushiksr08@iimb.ernet.in.
keting for Axe was backed up by a great prod-
uct too. The Axe effect in terms of sales and Rohini Ramachandran is a 2nd year PGP student at IIM
market share has been spectacular to say the Bangalore. She holds a Bachelors degree in Electronics and Com-
least. HUL (the parent company)replaced their munication Engineering from National Institute of Technology
old deodorant brand Denim with Axe due to its
(NIT) Trichy and can be reached at rohinira08@iimb.ernet.in.
spectacular success.


PAGE 6 Influencer Marketing
Welcome to the age of influencer marketing objective. WOMMA
marketing. You might have wit- (Word of mouth marketing associa-
nessed and experienced it in the tion) provides a handy classifica-
past – it‟s just that the term has tion of influencers based on how
become more visible. Youtube, they derive their power of influ-
blogs, twitter – the tools can be ence.
many, the message is the same -
“you are being influenced.” Once the target influencer has
been identified, the next step is to
market the product to the influen-
cer, to help increase the awareness
Compared to traditional marketing
among the influencer community.
practices, influencer marketing fo-
They then become well equipped to
cuses on key types of individuals. It
use their influence in favour of the
aims to take advantage of the influ-
ence these individuals have over
the target segment, with these in-
fluencers becoming the centre of all
The third and final set of activities
marketing activities.
involves the use of these influen-
Imagine your next visit to
cers to advocate to the target seg-
your optician. After the
ment. Influencers can play a direct
regular eye check-up, he According to Duncan and Nick,
advises you to switch to or indirect role in this process.
these influencers may be potential
contact lenses, informing What we see in case of contact
buyers themselves, or they may be
you of the pros and cons. lenses is an indirect approach
third parties. These third parties
You wonder what this is where the influencer (optician) is
exist either in the supply chain
leading to - is your optician raising awareness about the cate-
(retailers, manufacturers, etc.) or
working as an agent to some gory and not the brand. To comple-
may be so-called value-added influ-
contact lens manufacturer? ment the strategy, the manufac-
encers (such as journalists, aca-
Well, the answer to this turer might put some point of sale
demics, industry analysts, profes-
question can be both yes or merchandising to promote its prod-
sional advisers, and so on) - Fig 1.
no. He is just exercising his uct. The third and final set of ac-
influence on your decision tivities involves the use of these
making. The motivation for influencers to advocate to the tar-
such an action could have Using Influencer Marketing
get segment. Influencers can play a
come from a manufacturer, The first and most important activ- direct or indirect role in this proc-
in the form of incentives, ity in influencer marketing is iden- ess. What we see in case of contact
such as higher margins. On tification of influencers and evalu- lenses is an indirect approach
the other hand, he might ating their potential to serve the
just be using his judgment
and trying to help you out.

Figure 1: Type of Influencers (source: WOMMA)



where the influencer (optician) is raising Category/Subject Matter Expert group).

awareness about the category and not the These doctors commanded a great amount
brand. To complement the strategy, the of influence on their patients and most of
manufacturer might put some point of sale the times their prescriptions acted as a
merchandising to promote its product. command for the patients. Marico identi-
fied these doctors and dieticians as its
Industry Practices
One of the most common applications of
Marketing to these influencers is done
influencer marketing is in medicines and
through various activities. Here we list
pharmaceutical products. In many cases,
some of them:
the active ingredient is common across
companies, and the medicines are substi-
tutable. Since the law prohibits any adver-
tisements of prescription drugs, compa-
nies rely on prescriptions from doctors to
drive sales. Hence, they send their repre-
sentatives to disseminate information to
doctors and give them free samples (you
might have seen „Physician‟s sample, not
for sale‟ printed on mini packs in your
doctor‟s clinic). Sometimes, the represen-
tatives even check up with local chemists
whether the medicines being promoted are
selling, before they make a visit.

Figure 2: Saffola's use of influencer

Even in categories where advertising of the marketing
product is permitted, like oral care, com-
panies don‟t miss out on opportunities to
1. Product detailing and sampling to the
promote their products to dentists. This is
doctors. Marico promoters visit these
because an advertisement can rarely have
doctors and brief them about the
the credibility, and hence the influence on
product. They use product detailers
the purchase decision, as compared to a
and other research documents to
suggestion from the consumer‟s dentist.
backup their claim. Sampling helps in
Another avenue that companies use to
generating some trials if the doctors
market themselves to influencers like den-
find the product claims appropriate.
tists is sponsoring lectures on recent
Essentially, it‟s the same route that
trends in oral care. Use of various dental
pharmaceutical companies take for
associations to certify one brand of tooth-
their product.
paste or toothbrush is another example of
influencer marketing. Colgate has done 2. Involvement with various medical as-
well in this regard in India. sociations and other such platforms.
The visibility on such forums provides
reach to a large section of influencer
On a related note, Marico Ltd. has suc- community.
cessfully used influencer marketing
3. Involving various key influencers to
through cardiologists to promote its prod-
help improve the product offering and
ucts, especially Saffola Oil. Saffola is a saf-
future product development.
flower based refined edible oil that prom-
ises to help control cholesterol for cardiac
patients. When Marico launched this
product in market, the biggest challenge it
faced was that most of the customers were
unaware about cholesterol. Cardiac pa-
tients relied completely on their cardiolo-
gists and family doctors for information (in
WOMMA classification, these belong to



Once these influencers become aware of the Top 10 Most Brilliant Marketing Screw Ups
product and accept the effectiveness of the
product, they do not hesitate in giving infor-
mation about the same to their patients.
 Coors put its slogan, "Turn it loose," into Spanish, where it
Saffola today is part of many a diet charts
was read as "Suffer from diarrhoea."
and diet-guides because of such activities. It
is most probably the only edible oil that is
recommended by doctors during consulta-  Scandinavian vacuum manufacturer Electrolux used the
tion. following in an American campaign: "Nothing sucks like an

Another, most common use of influencer  Clairol introduced the "Mist Stick", a curling iron, into Ger-
marketing in modern times is engaging tech- man only to find out that "mist" is slang for manure. Not
nology experts during launch of new prod- too many people had use for the "manure stick."
ucts. Most of the cell-phone manufacturers
as well manufacturers of new age software  When Gerber started selling baby food in Africa, they used
provide their product to these experts before the same packaging as in the U.S., with the beautiful Cau-
the product is formally launched. The ex- casian baby on the label. Later they learned that in Africa,
perts are encouraged to write about the companies routinely put pictures on the label of what's in-
product. The influence these experts com- side, since most people can't read.
mand over the tech savvy target segment
helps in convincing early-buyers of the prod-  Colgate introduced a toothpaste in France called Cue, the
uct and thus generating the initial thrust name of a notorious porno magazine.
required for the success of the product.
 An American T-shirt maker in Miami printed shirts for the
Spanish market which promoted the Pope's visit. Instead of
Influencer marketing gives a marketer an
"I saw the Pope" (el Papa), the shirts read "I saw the po-
opportunity to utilize resources beyond what
tato" (la papa).
is owned by the organization. This necessi-
tates establishing professional and ethical
norms on the marketer‟s part. The power of  Pepsi's "Come alive with the Pepsi Generation" translated
influence also comes with great responsibil- into "Pepsi brings your ancestors back from the grave", in
ity of using this influence in the right man- Chinese.
ner. It is not uncommon to hear of compa-
nies providing excessive incentives to influ-  Frank Perdue's chicken slogan, "it takes a strong man to
encers, to ensure that they promote only make a tender chicken" was translated into Spanish as "it
their products. The onus is on the marketer takes an aroused man to make a chicken affectionate."
to define the ethical and professional
boundaries and stay within them.  The Coca-Cola name in China was first read as "Ke-kou-ke-
la", meaning "Bite the wax tadpole" or "female horse
stuffed with wax", depending on the dialect. Coke then re-
So, in case you are looking to visit your opti- searched 40,000 characters to find a phonetic equivalent
cian anytime soon, at least now you know "ko-kou-ko-le", translating into "happiness in the mouth."
that he might be influenced by Bausch and
Lomb to „influence‟ you into buying contact  When Parker Pen marketed a ball-point pen in Mexico, its
ads were supposed to have read, "It won't leak in your
pocket and embarrass you". Instead, the company thought
Ammar Tambawal is a 2nd year PGP student at IIM Ah- that the word "embarazar" (to impregnate) meant to em-
medabad. He holds a Bachelors degree in Electronics Engineering barrass, so the ad read: "It won't leak in your pocket and
from V ES IT, Bombay and c an be reac hed
make you pregnant."
at 8ammary@iimahd.ernet.in

Pritesh Jain is a 2nd year PGP student at IIM Ahmedabad.

He holds a Bachelors degree in Electronics and Communication
Engineering from RV College of Engineering, Bangalore and can
be reached at 8priteshj@iimahd.ernet.in



Implicit positioning and surrogate advertising

Advertising is widely accepted to be vertising avenues which often
the most potent tool in the hand of a stretched the concept of brand ex-
marketer. Whether it is to launch a tension to previously unheard-of lev-
new product, entrench an existing els. These include the mundane such
one, educate on the new salient fea- as sponsoring events (without ex-
tures or create a new market, most plicit advertising) and Internet adver-
consumer products manufacturers tising; the unconventional such as
orient a considerable amount of ITC‟s diversification into clothing and
time, energy and money to reaching apparel as well as the far-fetched
out to existing and potential con- such as the Red and White Bravery
sumers though various media such Awards and other lifetime achieve-
as television, radio etc. as also new ment awards instituted mainly to
age media like the Internet and Out perpetuate brand recall among the
of Home (OOH) media. target audience. One interesting
trend which was observed in the mid
Origins 2000s was the “socially responsible
In this context, one can imagine the advertising” taken up by many liquor
predicament of a producer who is companies. Several advertisements
mandated to legally produce and exhorting viewers to be responsible
stock and then has his hands tied by citizens and refrain from driving after
The ban on advertising of being denied the right to market the drinking were seen by media ana-
tobacco and liquor produce. This is a ditch that many lysts as a form of surrogacy.
introduced by the
liquor and cigarette companies have
Government of India Media analysts have also often won-
found themselves in after the Gov-
during the early 2000s has dered aloud that the ambitious for-
ernment of India passed a blanket
spawned a generation of ays made by Dr Vijay Mallya in avia-
surrogate marketing ban on all advertising of „intoxicants
tion, Formula 1 and related
initiatives as corporations and harmful substances‟ in mid
„glamorous‟ industries have as much
leant to sell without 2002. Most of the large players
to do with his desire to perpetuate
communicating to the adapted quickly to introducing what
his strong brand portfolio as the
consumer. Many in the are termed as complimentary prod-
prospect of de-risking his business
industry have since started ucts which fell outside the ambit of
by diversifying.
to diversify into areas the Government‟s regulation. The
where they can leverage significant ones include 8PM Whisky
For the best part of this decade, the
their brands’ aspirational (apple juice), Aristocrat Whisky
tobacco and liquor manufacturing
value; such as aviation, (apple juice), Bagpiper (club soda),
lobby has been trying to persuade
clothing and apparel and Hayward‟s 5000 Beer (kit of darts
the government to relax the restric-
sports. However the which was the centrepiece of the ad-
surrogacy in advertising tions on advertising what are per-
vertising campaign) and Gilbey's
continues in the absence ceived as surrogate products. Fi-
Green Label Whisky (mineral water);
of a strong code by the nally, as late as March 2009, the
and in this process was born a new
ASCI and the government Government of India decided to the
trend of surrogacy in advertising
flip flops on the issue. hand a long rope under the stipula-
which is commonly defined as
The need of the hour is to tion that the surrogates have no
„advertising one product with the
come clean on the subject product linkages to intoxicants.
view of selling another‟
and develop an However on June 10th this year, the
unambiguous plan of Trends in surrogate advertising government tabled a bill to amend
action the Cable Television Network Act of
After the ban imposed on the 12 ad- 1994, which is likely to tighten the
vertisements identified as surrogates screws on surrogate advertising even
by the Government of India, and the further.
show-cause notices issued to Star
TV, Zee TV and Aaj Tak in 2002 un- Advertising Ethics
der the provisions of the Cable Tele-
vision Regulation Act of 2002, the
whirlwind of surrogate ads hitting The Advertising Standards Council of
the telly calmed down to a large ex- India (ASCI) issued clarifications at
tent. Advertisers started diversifying various points of time that in accor-
and shifted their focus to other ad- dance with the code laid for guiding



If it has been established conclusively that ciga-

rette smoking kills, why is it that it is available
to anyone, irrespective of his or her age, at
every street corner?”

"It's difficult to digest that an industry which is

ethical behaviour in advertising, the mere use allowed to sell its products, is banned from ad-
of a brand name or company name which may vertising the same products, despite the fact
be the same or related to a product put under that the commercials carry health warning, ad-
advertising restriction may not be construed as vising the customers to use the product in tem-
reason enough to find the advertisement objec- perance.", says Prof. Atul Tandan, Director,
tionable. An exception may however be made Mudra Institute of Communications in an arti-
in case the product which is advertised is not cle released in July 2002.
freely available or is produced and distributed
in minuscule quantities, which may not be suf- While such questions make intuitive sense, the
ficient to warrant advertising costs. Also adver- practicality of banning production of tobacco
tisements must not contain direct or indirect and liquor is unpalatable for the simple reason
cues for the product under advertising restric- that these are very heavy contributors to In-
tion. dia‟s tax kitty and the revenue loss due to a
ban on production will most likely be catastro-
However many advertisers must still grapple phic. Also the increasing pressure exerted by
with ethical dilemmas as the existing code the WHO as well as NGOs and health activists
leaves a lot of scope for interpretation. have forced the government to be seen doing
something. As a result of this duality of pur-
Voluntary abstinence pose, the tug-of-war continues without resolu-
A notable exception to the clamoring by the The need of the hour
tobacco and liquor lobby and circumventing of
stipulations to maintain sales is the conduct of
ITC Ltd after the ban announced by the gov- The following measure will go a long way in
ernment. In 2001, ITC voluntarily opted out of easing the deadlock seen here:
the sponsorship deal that it had signed with
the BCCI to sponsor the Indian cricket team The ASCI should have an unambiguous guide-
and has since been de-emphasizing its ciga- line for differentiating acceptable and unac-
rette brands in favor of other lines of business ceptable forms of advertising with respect to
which are considerably more sustainable. It surrogate products. Also the ASCI should be
has also taken up large scale Corporate Social empowered to implement the guidelines and
Initiatives in rural India, the crown jewel being issue penalties for non-conformance.
the e-Choupal initiative, to enable the agricul- The government needs to take a stand on the
tural community to adopt a direct selling ap- issue. It must look beyond having the cake
proach. (the advertising ban) and eating (tax revenues)
it. Advertising companies must take pains to
Two sides of the same coin: Ambiguity of understand the nature of the products and
law market that they are dealing with and must
refrain from designing and propagating surro-
gate brands.
Many in the industry question the practice of
banning advertisements which effectively Nikhil Joshi is a 1st year PGDM student at IIM Calcutta. He
erodes the ability to sell while at the same time holds a Bachelor‟s degree in Electronics and Telecommunication Engi-
allowing production to continue. neering from University of Mumbai and has worked as a Software
Testing Consultant with L&T Infotech. He can be reached at
In an article published by The Hindu in March joshin2011@email.iimcal.as.in
2008 Ramesh Narayan, a communication con-
sultant writes,
“The advertiser‟s perspective is fairly straight-
forward. If it is legal to manufacture, distribute
and sell a product, why should it be illegal to
promote the sale of that product? I don‟t think
anyone can answer that question convincingly.



Fake IPL Player: Redefining Marketing

“Lord Almighty along with the Ca-
lypso King decided to take the attack
Further, according to a report pub-
on to the Bubblies. The Phoren babas
lished by Business Standard, the
were happy when they saw Appam
peak ratings of KKR matches on SET
being slaughtered. Prince Charles of
MAX channel were among the high-
Patiala was all tensed up but
est; at around 6 per cent of the total
Bhookha Nan and Kaan Moolu were
cable viewers above the age of 15
having a very good time with Sandy
Baddy Babe.”

A source representing one of the

This may sound gibberish to many.
sponsors summed it as “From an
But those who have ever come
advertiser‟s point of view, we have
across the Fake IPL Player‟s blog at
got a lot of mileage and media space
any point of time would be laughing
for the right and wrong reasons. The
their hearts out. This blog has be-
fact that it has managed to attract
came a sensation in the cricketing
Fake IPL Player, a blog television viewership and on-ground
world. But at the same time it also
released by an anonymous support from spectators speaks a lot
made several great traditional mar-
blogger during the Indian about the brand KKR”.
keters sit up and take notice.
Premier League (Season-
2), created a lot of furor
in the cricketing world. This may be a coincidence. But
What is this hype all about?
But at the same time it surely Fake IPL Player has popular-
stood out as an excellent Just a couple of days before the start ized the two relatively new strategies
marketing campaign for of the IPL 2nd season in South Af- of marketing – Anti-Marketing and
the Kolkata Knight rica, a blog was launched by an Buzz Marketing.
Riders Team. Using the anonymous person, who claimed to
unorthodox marketing be a member of the Kolkata Knight
techniques of Anti- Anti Marketing
Riders Squad. Throughout the IPL
marketing and Buzz
he kept sensationalizing the intra-
Marketing, it could help After studying marketing campaigns
team conflicts. Humor and Suspense
KKR build up a strong and trends for several years, Indrajit
brand value as well as - his two weapons- made the follow-
“Jay” Sinha, an associate marketing
generate enough TRPs on ers want more of it.
professor at the Fox School of Busi-
television. This article ness and Austrian marketing profes-
analyses the different new sor Thomas Foscht, discovered that
-age marketing techniques The result
effective campaigns go against what
with reference to the case traditional marketing preaches. They
of the aforementioned Although Kolkata Knight Riders
(KKR) kept up their dismal perform- have together published a book
ance, they have emerged as the “Reverse Psychology Marketing: The
strongest IPL brand. According to Death of Traditional Marketing and
the IPL Brand Value Scoreboard the Rise of the New Pull Game”,
2009 published by UK‟s Intangible which identifies and analyzes the
Business in collaboration with MTI new marketing trends.
Consulting, KKR tops the board with
an estimated brand value of $22.3 According to the book -- “Traditional
million. As Richard Yoxon, the Inter- marketing campaigns are focused
national Director of Intangible Busi- around customer orientation. They
ness puts it – “Winning games is not offer too much choice, confusion and
enough to build a successful sports sales pressure, resulting in custom-
brand. Teams need to engage the ers‟ boredom, cynicism and irrita-
local community, attract star players tion. Less is more with present-day
who inspire a wide audience and de- marketing. Customers now crave
velop a strong marketing communi- simplicity, authenticity and exclusiv-
cation program.” ity”.



“Fake IPL Player” blog did exactly the same Interviews etc. But simulation and controlled
thing. Instead of blowing its own horn, the conversations twist the facts to a certain ex-
author tactically cooked up stories about in- tent thereby affecting the outcome of the data
fighting within the team. This created a sen- analysis as done by market research agen-
sation for the cricket crazy masses which in cies.
turn strengthened the KKR brand. As market-
ers put it “Any publicity is good publicity”.
Uncontrolled conversation would let people
There have been a few examples of successful vent out their emotions without any con-
anti-marketing in the past. One such signifi- straints. This would in turn give marketers
cant example is that of Steven Singer Jewel- better insights into consumer behaviors.
lers. It has successfully executed a marketing
Fake IPL player‟s blog generated a greater
campaign – “I hate Steven Singer”. As a result
buzz for Team KKR by encouraging uncon-
it has become a landmark jeweler in the
trolled conversation. Thousands of comments
Philadelphia region.
were posted in response to each blog post.
This added flavor to the blog and generated
Buzz marketing further interest in the blog as well as in the
KKR team. This in turn resulted in the soar-
Viral marketing describes any strategy that
ing TRPs of the KKR matches.
encourages individuals to pass on a market-
ing message to others, creating the potential
for exponential growth in the message's expo-
The lesson
sure and influence.
Some claimed the Fake IPL player was a real
life cricketer while others, at the same time,
Buzz marketing is a viral marketing technique considered it a marketing gimmick of KKR,
that attempts to make each encounter with a Shahrukh Khan et al. Though he did reveal
consumer appear to be a unique, spontane- his identity in his own cryptic way, the Fake
ous personal exchange of information; instead IPL Player remains anonymous as ever. What-
of a calculated marketing pitch choreo- ever it may be, it has surely taught all estab-
graphed by a professional advertiser. Al- lished and budding marketers a lesson. It‟s
though the concept of Buzz marketing is not not about the big bucks spent on advertising
new, but the way Web 2.0 is used these days, and promotion, but about innovative market-
it has opened up several avenues for the new ing channels and creative strategies. Analyz-
age marketers. Like viruses, such strategies ing the right media channel and the right
take advantage of rapid multiplication to ex- creative message is far more fruitful than
plode the message to thousands, and mil- some elaborate but outdated marketing and
lions. promotion practices.

This was the case with the Fake IPL Player. Welcome to the new „fake‟ world!
The Fake IPL Player didn‟t spend a single
penny. But he reached thousands. Overnight
the blog became the talk of the town. He used Praneet Gourav Mishra is a 2nd Year student at IIM
a simple and free user friendly web resource, Lucknow specializing in Marketing and Finance. He is a
blogs, and spread through word-of-mouth “Mechanical Engineer” from NIT Rourkela and can be reached at
communication. He realized the fact that get- mishra.praneet@gmail.com
ting one interested user (or customer) will
eventually result in several others getting in-
terested in the product. More than 8000 fol-
lowers of the blog stand testimony to this fact.

Uncontrolled Conversation: the mantra of

new-age advertisements

Traditionally brands discouraged uncontrolled

conversation on social media and read too
much into the controlled conversations in a
simulated environment e.g. FGDs, In-depth

Effective Multi-tiered Promotions: Lesson from Santoor

Trade promotions refer to any activ- for promotions across different
ity aimed at providing an incentive Population groups (POP groups)
to the channel members for their and outlet types (Retailer or Whole-
support in marketing and distribu- salers). Then we will describe Multi-
tion of the product. There are a tiered promotions followed by its
number of tools available to the
application by Santoor brand. In
marketer for the same such as price
-off, allowances, free goods, trade the end we will consolidate the
shows, sales contests, specialty ad- learning of the study.
vertising, etc.
Trade Preferences for Promo-
The importance of such measures
stems from the fact that the retailer tions: Primary survey
is willing to sell only those products
which have a demand in the market A structured questionnaire was de-
and thus allow him to earn a profit. signed and was pre tested on a
These measures incentivize the ef- sample of 7 retailers at Hyderabad
forts that a channel member puts in city. Out of 101 outlets visited, 9
for increasing the sales of a product said they are not interested in pro-
and create a „push‟ in the channel motional offers so no further ques-
which may lead to a higher sales tions were asked about the promo-
turnover. The push effect is of spe- tions. The survey findings are sum-
Sales promotion is an essen- cial significance in product catego- marized below:
tial part of any marketer’s ries where the differentiation be-
activities. It can be classified tween products is not very high.  Deal Proneness: It was found
as Trade promotion and One such category is the FMCG. that 91.08% of the traders were
Consumer Promotion The deal prone. Similar trend was
authors conducted a survey Within the FMCG sector, the adver- observed across outlet types
about trade promotion ac- tisement campaigns that are run and POP groups.
tivities in the soap industry bring the customer to the retail
store, yet at the point of sale there  Deal Preference: It was found
and found out that different
are numerous options available. At that 64.13% of traders prefer
types of traders prefer dif- price-cut promotions while rest
this juncture the retailer can have
ferent kinds of promotions. an impact on the purchase decision. preferred gift based promotions
Every company must offer Incentives offered to the retailer, by like gift articles etc. Considering
promotional schemes which the company or the wholesaler, mo- outlet type, 60.66% of retail out-
cater to the needs of all tivate the retailer to push the brand lets prefer price cut while
types of retailers. One ap- and affect the purchase decision 70.97% of wholesaler preferred
proach of integrating varied favorably. price cut promotions. Across
promotional efforts is multi- POP groups, FLP retailers were
Through our study we intend to find more inclined towards price cut
tiered promotion. To show
the relevance of multi-tiered promo- (76.19%) as compare to lower
the effectiveness of this
tions for such categories. We chose POP groups (OLP – 60%, 20K-
approach, we have shown 50K – 41.16%). In order words
soap category (INR 6500 Cr) as it is
the promotion efforts of the biggest category in FMCG seg- lower POP group retailers were
Santoor soap in a particular ment. Within Soaps, Santoor is the interested in gift based promo-
quarter. 2nd largest brand in India in the tions.
popular segment, and also the larg-
est brand in Andhra Pradesh with a  Time of Incentive: 56.52% of
market share of 37.07% of the total trade prefers instant gratifica-
3,374 tons per month. One reason tion while rest prefers long term
for the leadership position attained benefit. It can be concluded that
is the multi-tiered promotion policy there is a mix response in the
of the company. In this article we market. Considering the outlet
will present the primary survey con-
ducted to identify trade preferences
type, 67.21% of retailers prefer
instant gratification because of



wholesaler having considerate stocking sales for the company. If there is an appro-
capability and pushing power tends to priate multi tiered promotion mix, the com-
opt more(64.52%) for long term plans pany can effectively achieve its sales targets.
due to extra margins involved. The
same trends follow in various POP To substantiate our proposal, we provide em-
groups. pirical data on the multi tiered promotion
 Type of Incentive: It was found that used by Santoor soaps during Jan-March
48.91% of trade prefers assured prizes 2009, in the Andhra Pradesh market
while 51.09% of trade prefers to try
some luck. The similar response was The Santoor Way
from retailers and wholesalers. Looking
at the POP groups, the retailers from Santoor uses multi-tiered trade promotions
lower POP groups (20K-50K) were more with different time duration and promotion
interested (64.70%) in lucky draw. The mix. We will measure the effectiveness by
wholesalers from Metro (62%) and OLP observing the impact of sales. The promotion
(71.42%) were more interested in lucky schemes run by Santoor can be classified as
draw and bumper prizes. in Table 2.
Leanings from the survey –
Secondary Scheme
 Preferences of traders for different promo-
tions changes across outlet type and POP
Adding to the regular margins and “primary
schemes” each sales officer has been allotted
 Customization of promotion schemes nec- budget of Rs 15 per CFC for the “secondary
essary for effectiveness of the same – a mix of schemes”. The Sales Officer can tailor
price based and gift based promotions to cater schemes on the basis of it. These schemes
to the different needs of different traders are tactical in nature which is used by Sales
officer to meet the sales target. The schemes
 Promotion schemes with different time- are QPS (quantity purchased scheme) to give
lines are preferred by different traders due to extra margins and offers for bulk purchase.
their inherent nature (outlet type, planning The trade schemes used during Jan-May
horizon, etc) 2009 were:

Multi-Tiered Promotion Specific trade plan

Multi tiered promotion refers to promotional Wipro regularly announced long duration (2-
schemes running simultaneously at the same 3 months) trade plan to motivate trade for
time and complementing each other towards bulk purchase. We will discuss Tambola
meeting the sales targets of the company. The scheme (Jan-Mar 2009) for this article, which
different schemes may be price based or gift involved a lucky draw for the prizes (Spark
based, follow different timelines individually Car, Bajaj Motorcycle, Air Conditioner etc).
and complement each other. The offering of
the different schemes is based on the discre- The unique feature, early bird prizes to kick
tion of the Sales Manager – who may focus start the program was valid for a period of
more on a particular kind of scheme for differ- first 21 days. One Early bird Ticket for a
ent traders keeping in mind their preferences. zonal lucky draw was given if the trader ob-
For example – there is a weekly scheme (price tains 50 Tambola tickets. The prizes were
or gift based) running which motivates retail- worth Rs 300 to Rs 6000.
ers to buy higher stocks every week. At the
same time, there is a monthly scheme wherein Effectiveness of the Multi-tiered promotion
the retailer can win a gift on purchases of a mix was reflected in the increased sales dur-
specified number of units or earn a special ing the scheme period of as shown in Table
discount. Now even though initially the re- 4.
tailer may think that the monthly target is be-
yond his reach and may focus on just the
weekly scheme, by the last week of the month
the weekly target achievement would have During the Tambola scheme, the company
brought him within sight of the monthly tar- also ran consumer promotions summarized
get. This position may motivate him to achieve in Table 5.
the monthly target as well, leading to higher



Table 1: Parameters for Primary Survey

Table 2: Multi-tiered Promotion by Santoor (Source – Personal Communication)

Table 3: Tactical Weekly Scheme "Secondary Scheme" (Source – Personal Communication)

Table 4: Effect of Multi-tiered Promotional mix on Sales (Source – Personal Communication)


erences. They also were seeing higher
 Flash Start – This phase saw the launch of
customer purchases due to the rejuve-
the Tambola Scheme, along with the weekly
nated customer promotion campaign.
schemes (price and gift based) and con-
sumer promotion. The long term schemes
Thus we see that each of the schemes was
generally fail to motivate traders during ini-
complementing the others, with the choice
tial period. In order to kick start the plan,
of offering price or gift based incentives lying
Wipro introduced early bird prizes to give
with the sales manager, the schemes. We
traders dual incentive to participate in the
see that the multi-tiered approach for pro-
plan. The short term incentive though
motional mix was followed leading to higher
brought buzz in the market it was amply
sales and success in the market.
supported by tactical weekly schemes suit-
ing both the preference, gift and price pro-
motion of traders. The weekly schemes in
the first two weeks brought them close to
the target for early bird prizes leading to The conclusion of the study is that the
higher purchases in the third week. At the trader preferences for promotion schemes
same time, higher push in the channel was vary, between price based and gift based
complemented by a consumer promotion. incentives. The preference for the scheme
So the traders were purchasing more to be horizon also varies with the size, type and
eligible for weekly and/or early bird scheme nature of the trader. Some traders prefer
while the customers were also demanding short term incentives which provide instant
more of the soap. Thus, Multi-tiered promo- gratification while some prefer long term
tion mix (weekly and early bird scheme) benefits. To be effective, a promotion mix
helped Wipro to motivate traders to pur- needs to consider all kinds of traders. Multi
chase more so as to be eligible for another tiered promotion is an approach for the
tier of incentive i.e. Tambola scheme in its same, which can provide different types of
first phase. incentives to different traders, vary the in-
centive horizon, and integrate every simulta-
 Mid slump – During this phase, the weekly neous scheme towards the achievement of
schemes ran as before, the customer pro- the overall sales target of the company. The
motion also ran without change. The overall approach has been used in the market by
Santoor, and effective execution can lead to
Tambola Scheme was also present, without
better results.
the early bird scheme. The benefit of such a
strategy was that traders who had built
high stocks in the first phase were able to
clear them out. The consistency of con-
sumer promotion was a deliberate attempt
Abhishek Sood is a 2nd year PGP student at IIM Bangalore.
He holds a Bachelors degree in Commerce (Honours) from Sri
to help trader in finishing their accumu-
Venkateswara College, University of Delhi and can be reached at
lated stock as superior change in consumer
promotion would shift the consumer de-
mand towards the freshly offered stock The Akhil Kumar Meshram is a 2nd year PGP student at IIM
weekly benefits were for those traders who Bangalore. He holds a dual degree, Bachelors and Masters in
were either not covered by the early bird Information Technology from Indian Institute of Information
scheme, or were not interested in the long Technology and Management (IIITM) Gwalior and can be
term benefits. They benefitted immensely reached at akhilkm08@iimb.ernet.in.
with the continuing weekly offers.

 Late Push – In this phase, the weekly

schemes continued as before, the customer
promotion was changed so as to motivate
trader to purchase more and at the same
time, there was an increased focus on the
Tambola scheme. The traders, who had
been utilizing the weekly schemes, and
early bird scheme were close to the targets
for the Tambola scheme – and in their effort
to achieve this target, they could utilize the
weekly schemes which were mix of price
and gift based promotion as per their pref-

4P’s of Indian Theatre Marketing

Dharamveer Bharati and B.M Shah
Theatre has been the soul of Indian Kutiyattam in Kerala. Noted con-
entertainment since Vedic times. temporary playwrights like Habib
The different forms of theatre acts
Tanvir, Vijay Tendulkar, and Mohan
in India have given an incredible
and unparalleled versatility to In- Rakesh, Girish Karnad, Mahesh
dian art and culture. The father of Dattani, Badal Sircar, Dharamveer
Indian theatre Bharat Muni who Bharati and B.M Shah revolution-
wrote Natya Shastra laid the foun- ized the art of story telling and mod-
dation of structured training in ern theater. We must acknowledge
field of theatre and dramatics be- the contribution of stalwarts like
tween 200 BC and 200 AD. Theatre
Prithivi Raj Kapoor, Sohrab Modi,
as an art form in India has its
roots during the Vedic period. But Ebrahim Alkazi , Amal Allana, Om
in spite of such a long period of Puri, Naseerudin Shah , ShahRukh
existence , theater groups are still Khan, Manoj Bajpai , Atul Kulkarni,
fighting to make theater commer- Yashpal Sharma and Sima Biswas,
cially viable. This paper discusses who popularized Indian theatre and
Theatre needs mass some aspects of Indian theatre ,
then moved to the film industry.
categorization of art , process of
marketization to theatrical productions , 4P‟s of
theatre marketing mix , the needs THEATRE: PRODUCTIONS &
make it commercially of today‟s culture consumers , the CHALLENGES
difference between the high art and
viable. popular art , competitors to theatre McCarthy (2001), categorized arts in
and challenges faced by Indian four broad sections i.e. Performing
theatre groups. Based on the com- arts, Media arts, Visual arts and
Digital marketing prehensive discussions with nu- literary arts. The second figure
strategy coupled with merous theatre artists and theatre shows the categorization of arts.
accessible locations for activists, the paper lays down stra- Performing arts is further subdi-
staging live tegic outline for a theatre market-
vided in to theatre, dance, music
performances will help ing plan in India.
and opera. Media related arts are
in attracting large
subdivided in to installation art,
number of audience in a INTRODUCTION
timely manner and thus film production and the recent addi-
make Indian theatre a tion of computer/digital arts. Visual
Theatre is an ancient aesthetic
commercially viable arts have been categorized into
practice in India. Surviving play
business. texts and treatises suggest that painting, sculpture and crafts. The
theatre existed in the Indian sub- last section, literary art is classified
continent from the dawn of civiliza- into fictions and poetry.
tion. According to the Natyashastra
of Bharata, an exhaustive treatise Any theatre production involves a
on the art of performance, drama series of rigorous steps. The second
was a gift from the gods to the hu- figure shows the steps involved in
making a theatrical production and
Theatre has travelled many centu- bringing it to the people. Theatrical
ries in India. The different active scripts are conventionally sourced
forms of theatre in India which are from historical writings or adapted
still mesmerizing the art lovers are or written right from scratch. Once
Bhavai in Gujarat , Yakshagana in the script is ready then it is sub-
Karnataka , Nautanki in Uttar jected to production. Support and
Pradesh and Bihar , Swang in inputs from musicians, choreogra-
Haryana , Jatra in Bengal and phers, actors, costumes. Lighting
Mohan Rakesh, Girish Karnad, and direction result in a presentable
Mahesh Dattani,Badal Sircar , form of a theatre product.



The second figure shows the marketing effort the masses.

to reach culture consumers. The figure shows
two triangles with a small and big base. The -As there is less and limited consumption of
smaller base shows the existing marketing available high art, therefore popularity of art is
effort and the bigger base shows the intended limited and this results in a decrease in audi-
marketing effort. ence. As a result , those who want to produce
popular art do not get sufficient funds to pro-
The various new challenges in cultural con- duce commercially viable popular art.
sumption are: decrease in consumer time for PROMOTION
leisure, expansion of consumer options for
entertainment, expanded exposure to world‟s The promotional strategies used by theatre
cultural products, blurring the distinction be- production houses are very limited. Recently
tween high and popular culture and changing few corporate houses have started funding the
patterns in public funding. These challenges theatre production houses e.g. Matrix cellular,
in cultural consumption have created a tough Vodafone, Religare, and Mahindra and Mahin-
competition for the consumption of theatrical dra. These corporate houses use extensive
products. publicity and advertisements for popular art
but it has not resulted in creating an enduring
audience. The traditional form of publicity
techniques used by theatre production houses
are as follows:

 Occasional advertisements in leading news

papers which occupy very small column
width and do not create any lasting im-
pression on potential audience.

 Small printed pamphlets are manually dis-

tributed outside the auditoriums. This only
helps to inform the existing theatre audi-
ence. This localized and captive distribu-
tion does not create awareness to potential

 Few theatre production houses have

started using cultural websites to promote
their new productions on cost free basis.
But the irony is that due to lack of funding
and advertisements such cultural websites
High art Vs Popular art: The principal problem
are struggling.
with the consumption of theatre products is
the distinction between high art and popular
art. The prominent and “talent rich” houses of  The other means of promotion is through
theatrical productions like National school of word of mouth. But word of mouth promo-
drama , Naya theatre and Rangshankara fail tions by existing audiences are not able to
to distinguish between the consumption of generate enduring audiences.
high art and popular art. In fact the artists
with prime talent in these organizations be- Due to lack of funding, theatre production
come so self obsessed that they never care houses use the cheapest means to promote
about the consumption of their art for the end their new products. And mostly the auditori-
consumer. They keep on producing high art ums which are used for such theatrical per-
for which there is a limited audience and formances are situated in a few specific areas
eventually no body is able to produce popular which are inaccessible to masses. Therefore
art. There are two prime reasons for this: minimal promotional efforts are nullified by
limited access to theatrical arenas.
-Those who can produce popular art in a com-
mercially viable way indulge in producing self
fulfilling high art, which is seen by a handful
and eventually making it non consumable for




Theatre in India has struggled to reach break

even point. Theatre production houses who
hire or have fulltime / part time performers
in it incur the expenses as shown in table 1.
On an average, a theatrical performance in-
volves 3 to 4 lead actors and 4-6 support ac-
tors. Lighting personnel play a key role in
designing the lights for the stage show and
are generally hired by theatre groups exter-
nally for specific periods. In general the thea-
tre production houses keep single show on
Product Place matrix
Saturday and double shows on Sunday. This
format is repeated for two weeks. This means
The above shows the product place matrix for
that in general six shows are performed for
theatre productions. Following inferences can
each production. The capacity of the audito-
be deducted from product place matrix:
rium is approximately 350.
 High Art consumers are less and they reach
The total expense of Rs 425000 is averaged
accessible as well as inaccessible places for
for six performances in a span of two weeks.
art consumption.
Therefore the average charge for each per-
formance comes to about Rs 70000. And the
average seating capacity of an auditorium is  Popular art consumers do not try to reach
350 , which means that in order to break to inaccessible locations but will reach in
even each ticket shall be priced Rs 200.It is high numbers to accessible locations.
difficult to ensure a full house in these per-
formances and if the performance turns out STRATEGIES FOR THEATRE MARKETING
to be a high art performance then the audi-
ence drops drastically and the production It is a well accepted fact in marketing that if
becomes commercially unviable. Therefore it you have problems in more than 2 P‟s of mar-
is quite evident from the basic calculations keting mix then it surely means that the mar-
that it is not profitable to run the theatre keter does not understand the segment of con-
business with a specific and captive audi- sumers. In theatre marketing mix, it is evident
ence. Theatre needs mass marketing to make that theatre production houses have serious
it commercially viable. problems with product, price, and promotion
and place as well. The key strategies for effec-
PLACE tive theatre marketing are as follows:

The places where the theatre products are  Correct segmentation of culture consumer
distributed need good acoustic arrange- for consumption of different forms of art.
ments, lighting facilities and pleasant ambi- Based on the segmentation, the different
ence. Therefore‟ theatre production houses sections of consumers should be targeted
rely heavily on a few select auditoriums. with specific theatre products and posi-
These auditoriums are generally run by gov- tioned in accessible locations.
ernment or small charitable trusts or some
private hospitality organizations. Access to  Cultural organizations such as theatre pro-
these places is limited to high end audiences duction houses or Government funded
who have taste for cultural products. The en- theatre schools should diffuse the bound-
during audience for these places is mostly ary between high art and popular art. And
constituted by those who consume high art theatre artist should produce theatre prod-
products and therefore theatre production ucts related to popular art.
houses that produce popular art products ,
stage them in available select places are not  Based on the cost of theatrical productions
able to attract mass audience. High art audi- it is quite evident that it will be difficult to
ence does not attend such performances and break even with existing high art audience,
thus creating a losing proposition for theatre therefore theatre production houses shall
production houses. make their products available at accessible
places such as cinema complexes, shop-



ping malls and other community places. Finally, it can be concluded that Indian thea-
Popular art lovers and high art lovers spend tre which exists in various forms in India has
their time in public places such as mall and huge potential. It can be marketed to a mass
cinema complexes. The cultural organiza- audience if proper segmentation of high art
tions should partner with cinema complexes consumers and popular art consumers is
to stage the live performances in such done. Digital marketing strategy coupled
places. The cinema complex owners like Fun with accessible locations for staging live per-
cinemas, PVR, INOX etc should be con- formances will help in attracting large num-
tracted to spare at least one screen for live ber of audience in timely manner and thus
performance and promote theatrical prod- make Indian theatre a commercially viable
ucts in such spaces. business.

 Theatre can become commercially viable by ACKNOWLEDGEMENT

integrating mass marketing and mass con-
sumption through low cost positioning, wide The author is thankful to the theater actors,
communication and deep distribution. India directors and writers from Delhi‟s National
is home to various forms of theatre in differ- School of Drama, theatre production house
ent languages therefore a correct segmenta- ASMITA, Delhi, Rangashankara, Bangalore
tion can help theatre become viable. and Prithvi theatre, Mumbai, for the inputs
 Catch them young: All of us become a rou-
tine audience to film entertainment because Mukesh Sharma is currently pursuing his one year full time
we are exposed to it through television from MBA (EPGP) from IIM Bangalore. He has spent more than 10
childhood days and thus we become cultur- years in automotive industry. He runs a non profit theatre group,
ally habitual to it. Therefore a theatre cul- Performer Group, in Delhi. He has acted, directed and produced
ture needs to be cultivated in Indian society various plays of social relevance in Delhi.
and this can be achieved by partnering with
educational institutes. In western world,
Theatre in education constitutes an integral
part of educational curriculum, which helps
in cultivating a strong theatre culture in the Marketing Jokes!!!
society. Theatre production houses, non
profit organizations and Government shall Two women were shopping. When they started to discuss
introduce Theatre in education (T.I.E) as a their lives, one said, "Seems like all John and I do anymore is
compulsory subject in middle and senior fight. I've been so upset I've lost 20 pounds."
school education. This will help in creating "Why don't you just leave him then?" asked her friend.
art awareness and art consumers in our so- "Oh! Not yet." the first replied, "I'd like to lose at least an-
ciety. other fifteen pounds first."
Marketing moral: Ya gotta have a goal!
 Digital marketing: Theatrical products are
plagued from poor distribution and access A retailer was dismayed when a competitor selling the same
problems. One of the crucial issues related type of product opened next-door to him, displaying a large
to theatre marketing is the booking of tick- sign proclaiming "Best Deals."
ets. Recently in few select cities some thea- Not long after that, he was horrified to find yet another
tre production houses have tied up with competitor move in next door, on the other side if his store.
digital marketers to allow web based book- It's large sign was even more disturbing—"Lowest Prices."
ings but a large part of Indian theatre is un- After his initial panic, and concern that he would be driven
touched to digital marketing concept. There-
out of business, he looked for a way to turn the situation to
fore a unified effort shall be raised to help
his marketing advantage. Finally, an idea came to him. Next
theatre production houses to market their
day, he proudly unveiled a new and huge sign over his front
products digitally to art consumers.
door. It read,
"Main Entrance!"

The Difference Between Optimism, Pessimism & Marketing

The Optimist says, "The glass is half full."
CONCLUSION The Pessimist says, "The glass is half empty."
The Marketing Consultant says,
"Your glass needs re-sizing."


PAGE 21 Neo-Political Marketing
Political marketing, simply put, is mar- There are numerous examples to il-
keting designed to induce people to lustrate that Obama‟s campaign
vote for a particular individual or a po- team understood the power of the
litical party. It attempts to accomplish new media, such as the citizen jour-
this by influencing citizens‟ thoughts nalists. When one blogger asked to
on various issues. Although political go to the media section at a Hillary
marketing uses many of the same con- Clinton rally in Boston he was
cepts used in traditional marketing, it turned away (because he was "not a
is different in the sense that ideas and real journalist") and had to cover it
concepts are sold in political market- from the back of the crowd. In con-
ing, rather than products and services. trast, Obama‟s campaign brought
What is interesting to observe is the him up to the media section where
evolution of political marketing he was placed with print reporters
through the embrace of new technolo- from the major dailies and TV crews
gies and distribution possibilities. In from the networks.
this article, we attempt to provide a
sense of these changes. Different as- President Obama leveraged his web-
pects of political marketing in the US site, user generated content, blo-
Obama’s landslide victory in are studied with emphasis on Barack gosphere and video games to engage
the recent US elections has Obama‟s widely lauded campaign. The not just the donors and volunteers
brought forth the corresponding aspects are analyzed in but all the citizens. A trademark of
effectiveness of strategic, well the Indian scenario as well, while at- Obama‟s campaign was his appeal to
-designed political marketing. tempting to understand the reasons the undecided voters and uncommit-
for the differences observed. We also ted supporters through the Join Now
Starting from the usage of an
provide certain observations on campaign in his website. The use of
effectively delivered, whether the Indian politicians can take social networking sites, especially
consistent message across the a leaf out of Obama‟s book. „MyBarackObama.com‟ during the
different phases of the campaign as a message board for
campaign, to leveraging the INTERNET & OTHER MEDIA USAGE local rallies, a virtual phone bank
reach of modern technology where Obama supporters could call
in raising funds from millions Emerging media and social networks undecided voters in Pennsylvania
of common people, Obama are changing the rules of marketing. and a place to raise money. With
has perfectly demonstrated Marketers across industries are slowly more than 2.6 million friends in
the art of implementing a beginning to understand the impor- Orkut and Facebook, the Obama
tance of this new media. However, one campaign also capitalized on the well
successful marketing
needs to realize that social media is known social networking sites. Such
strategy. Though the Indian efforts were rewarded by the positive
not changing the face of business mar-
socio-political scenario is not buzz that Obama received in the blo-
keting alone, but that of marketing it-
exactly the same as the US, self! Its effects can be felt far and wide, gosphere. For his efforts, Advertising
our politicians could surely and one of its most acclaimed applica- Age recently named Barack Obama
benefit by taking a leaf or two tions was its use in Barack Obama‟s “Marketer of the year”, outperforming
out of Obama’s book. 2008 presidential campaign. brands such as Nike and Apple.

Some reasons for Obama‟s success However, Indian politicians too have
were his willingness to experiment not been far behind in their efforts.
with new communication tools and his
understanding of the need for an It was just 5 years back, in the 2004
evolving communication strategy. If general elections, that the internet
President John F. Kennedy pioneered was used for the first time in Indian
the use of speech writers and a shift to politics. It started with the India
television, and President Ronald Shining campaign of the BJP. Nearly
Reagan harnessed the power of televi- 5% of the BJP‟s campaign budget
sion to communicate his messages, was allocated to the e-campaign, for
Barack Obama‟s team can be credited revamping its campaign website,
with pioneering the use of internet, pushing out text messages, pre-
social networking sites and mobile recorded voice clips and emails to its
phones in a political campaign. database of 20 million email users



and 20 million phone users, and offering cam- start the campaign and to register youth
paign-related mobile ringtones for download. party members through the party website.
Though BJP lost the 2004 elections, the ef-
forts can be considered to be successful as it The advantage of these campaigns lies in its
set the stage for the use of advanced technolo- cost-effectiveness. Traditionally, the urban
gies in an election campaign. Since then, the youth have been known to shy away from
demographic profile of India‟s electoral base elections. Now, the politicians have found a
has changed and the usage of technology for way to reach them without stretching their
attracting voters is increasingly being ac- election budgets. Fortunately for them, these
cepted by the masses. methods are slowly finding more acceptances
from people who represent different walks of
This time around, a number of politicians life.
have launched their own websites. The list
includes prominent politicians such as L K The youth leaders can convey their messages
Advani (lkadvani.in) to lesser known names to a larger section of the masses and attract
such as Vijay Kumar Malhotra (http:// more audiences through social networking
vkmalhotra.in/) and Mr. Ananth Kumar sites, internet sites and blogs. In the Indian
(http://ananth.org/). According to the BJP, context, the usage of internet kiosks can be
LK Advani‟s website has become very popular made more effective, by having a vernacular
and receives over 250,000 hits per day. Ad- medium of interaction and training programs
vani is also on Facebook, Orkut and YouTube, can be conducted for the people who haven‟t
while his colleague and Gujarat chief minister accessed the internet before. Sites similar to
Narendra Modi, uses tools such as podcasts, „MyBarackObama.com‟, can be used to main-
Twitter, Google SMS and widgets. Indian Na- tain a rapport with undecided voters. Also,
tional Congress‟ youth wing leader, Rahul given the increase in the number of bloggers
Gandhi, has over 3,000 supporters on Face- in India, the opinion of citizen journalists
book. The Advani@Campus initiative seeks to about the party can help increase the num-
build a grassroots volunteer campaign “to con- ber of volunteers, as more people would read
tact and mobilize young voters in thousands and be influenced by microblogs.
of college campuses across the country”
The leftist Communist Party of India (Marxist)
is not too far behind either. Though the politi- Traditionally, fundraising for elections has
cal party does not favor digital technologies majorly relied on industrialists and lobbyists.
(since it replaces human labor), it has shown This applies both in the US and Indian con-
a clear preference for cyberspace-enabled texts. Take for example, George Bush‟s fund
propaganda (vote.cpim.org) for their election raising campaign for the American presiden-
strategy of 2009. The CPI(M) has even admit- tial election in 2000. He successfully created
ted that since 54% of the Indian voters are a muscular network of „bundlers‟ (designated
youngsters, the internet may be the best me- by him as „Pioneers‟ and „Rangers‟), each of
dium for reaching out to them. Parties have whom committed to bring in $100,000,
even gone to the extent of wooing those not $200,000, or more from friends and associ-
residing in India, such as the website created ates. These bundlers were typically high-
by the Telugu Desam Party (http:// powered CEOs and lobbyists.
www.tdpuk.com) for U.K. based non-resident
Indians. The Indian context is not very different. Apart
from the significant portion of funding that
Indian National Congress has taken a step comes through black money, a huge share
ahead of just promoting the party and has comes from formal business funding. In fact,
chosen to project India as one of the most
the recent tax exemption to the corporate sec-
technologically advanced nations. Through its
tor for political funding is expected to signifi-
Jai Ho video campaign, based on a song taken
from the much acclaimed film “Slumdog Mil- cantly raise the contribution from this sector
lionaire”, Congress has shown the way to go and bring about higher transparency. In the
for election campaigns in India. In terms of recent parliamentary elections, the major
using technology as a means of garnering vol- backers of the Congress party were the
unteer support in India, the Congress party, Aditya Birla group and the Tatas, while the
during the most recent election, had set up 50 BJP received substantial funding from the
internet kiosks in the State of Gujarat, to kick Sterlite group of Anil Agarwal and the



Gujarat-based Adanis. In fact during the period Obama could have attacked the incumbent
of 2003-07, the two parties raised close to Rs. government, he did not take up a negative
53 crores through such sources. In this context, campaign dwelling on just the opposition.
Obama‟s fund-raising strategy stands quite Rather, policy details on how to achieve the
unique. Almost half of Obama's unprecedented change he sought to deliver formed the major
$639 million in funds raised from individuals focus of his campaign. However, he did not fall
came from small donors giving $300 or less. shy of attacking the incumbency and the op-
position when it was needed.
The role of internet in Obama‟s fundraising can-
not be overemphasized. The internet provided a
Consistency in message also played an impor-
quick, cheap and far less intimidating way of
tant part in the success of Obama‟s campaign.
fund raising for political novices as compared to
This consistency was manifested across the
getting big cheques written. Notably, some of
various platforms of message delivery –
Obama‟s campaign groups had set up systems
speeches, debates, infomercials, and blogs.
by which donors could have their credit cards
Through this lesson in successful integrated
billed automatically in easy-to-budget monthly
marketing, he was able to achieve coherence
amounts of as little as $20. The significance of
in the minds of the public. In fact, marketing
Obama‟s viral fund raising wasn't just in driving
strategist David Meerman Scott recalls asking
up dollar totals. It is widely accepted that such
a group of 300 people in Riyadh to think about
a personal approach in massive fund-raising
the one word that that they felt the Obama
resulted in millions of donors feeling personally
campaign stood for. The unanimous response
connected to Obama. They later turned into
from everyone was „CHANGE‟. Had that exer-
door knockers and phone bankers to support
cise been repeated for John McCain, Hillary
his campaign.
Clinton, John Edwards, and Mitt Romney, it is
fair to say that people would have had a hard
There are very good lessons for Indian politi-
time figuring out a word, let alone the word
cians in Obama‟s massive viral fund raising.
being the same. Even supposedly smaller as-
There is a huge section of the Indian middle
pects of the campaign such as the logo (shown
class that keeps itself aloof to politics. If our
in Exhibit 1 below) were used to communicate
politicians are able to tap in to this segment,
the same message to the public: the „O‟ stand-
even funds of the order of Rs. 20 - 50 per
ing for Obama, the blue and red colors used to
household would result in a huge fund due to
represent the US flag, the red stripes indicat-
the sheer size of this electorate. But here we
ing farmlands, and the O‟s whitespace symbol-
also need to pay specific attention to the Indian
izing the sun shining over the plains evoking
context. Unlike the US, internet penetration is
sunrise. On the other hand, as can be ob-
quite low in India. So the parties need to think
served, there is very little symbolism present
of other cost-effective means of fund raising.
in the other candidates‟ logos.
Mobile phones, with their rapidly growing pene-
tration among the Indian middle-class, can be a
On the contrary, in India, we find that there is
good option. Political parties can probably enter
both a lack of content and inconsistency in
into agreements with mobile service providers
the messages communicated by most political
and raise funds through premium rate SMSes
parties. However, there is no dearth of vague
(the way reality television programs make peo-
symbolism attempting to bring together citi-
ple send premium rate SMSs to express their
zens and communities of diverse characteris-
support to specific candidates in the show).
tics under a common umbrella. Consider the
example of the BJP, whose purported aim is to
bring in Ram Rajya (Rule of Ram). While such
a concept draws upon mythology and people‟s
There are two main parts to the success of beliefs bringing to their mind some kind of a
Obama‟s message communication strategy. One vision of an idealist society, it does not really
is the content of the message and the other is say anything about the policies to be adopted
the consistency of its delivery. The content of by the party in any domain such as education
Obama‟s message was one of hope, change, and or foreign policy. On the other hand, the Con-
gress‟ choice of the Aam Admi (Common Man)
inclusion – ideas that resonated with the major-
appears to be more appealing and in tune with
ity of Americans reeling under a crisis of confi- how a vast majority of the voters perceive
dence both in the economy and in the nation‟s themselves. Consistency in the message con-
identity in terms of its foreign policy. In spite of veyed at the national level is something that is
the fact that there were lots of issues where seriously lacking. With the necessities of coali-
tion politics and rise of regional players, a



party‟s message and what it stands for often Thirteen amazing facts about Google
gets lost in the scramble for power. This was
witnessed during the run-up to the 2009  Google receives daily search requests from all over
election results as each party, from small to the world, including Antarctica.
the large, „kept their options open‟. As Shek-
har Gupta puts it, we have entered an age of
 Google’s Home Page Has 63 Validation Errors.
ideological fungibility. While it is not fair to
Don’t believe us? Check Google Validation
criticize this and probably irrelevant to com-
pare with the Obama campaign (very differ-
ent political systems and socio-economic  The infamous “I’m feeling lucky” button is nearly
structures), it does appear probable that the never used. However, in trials it was found that
confusing messages and inconsistency be- removing it would somehow reduce the Google
tween what is conveyed and what is done to experience. Users wanted it kept. It was a comfort
take advantage of short-term benefits will button.
only result in diluting and alienating the
supporter base of a party and erode its  Due to the sparseness of the homepage, in early
brand value. user tests they noted people just sitting looking at
the screen. After a minute of nothingness, the
The marketing story of the Obama campaign tester intervened and asked ‘What’s up?’ to which
as well as those of the other aspiring politi- they replied “We are waiting for the rest of it”. To
cians in India and the United States can be solve that particular problem the Google Copyright
considered to be immensely successful, irre- message was inserted to act as a crude end of page
spective of them winning or losing. This is marker.
because of the increasing application of
technology and marketing concepts in a field  The name ‘Google’ was an accident. A spelling mis-
like politics, which has a lower preference take made by the original founders who thought
among the MBA graduates, at least in India. they were going for ‘Googol’.
However, there is still a long way to go be-
fore we can start talking about having
 Google has the largest network of translators in the
branded politicians and parties which com-
mand a huge brand value!!

Abhilash Sridharan is a 2nd year PGP student at IIM Ban-  Employees are encouraged to use 20% of their time
galore. He holds a Bachelors degree in Metallurgical Engineering working on their own projects. Google News, Orkut
are both examples of projects that grew from this
from IT-BHU Varanasi and can be reached at ab-
working model. Google consists of over 450,000
servers, racked up in clusters located in data cen-
tres around the world.
Arun Manohar is a 2nd year PGP student at IIM Bangalore.
He holds a Bachelors degree in Electrical Engineering from Indian  Google started in January, 1996 as a research pro-
Institute of Technology (IIT) Madras and can be reached at ject at Stanford University, by Ph.D. candidates
arun.manohar08@iimb.ernet.in. Larry Page and Sergey Brin when they were 24
years old and 23 years old respectively.
Venkatasubramanian S is a 2nd year PGP student at IIM
Bangalore. He holds a Bachelors degree in Computer Science from  ‘Googol’ is a mathematical term 1 followed by one
CEG, Anna University and can be reached at hundred zeroes. The term was coined by Milton
venkatas08@iimb.ernet.in. Sirotta, nephew of American mathematician Ed-
ward Kasne.
Vivek R is a 2nd year PGP student at IIM Bangalore. He holds
a Bachelors degree in Electronics and Communication Engineering  Number of languages in which you can have the
from College of Engineering, Anna University and can be reached Google home page set up, including Urdu, Latin and
at vivekr08@iimb.ernet.in. Klingon: 88 (Eighty Eight)

 Google translates billions of HTML web pages into

a display format for WAP and i-mode phones and
wireless handheld devices.



Strategic marketing for Educational Institutions

Apart from a few conspicuous excep- perform. The priest class, the Brah-
tions, the answer to all the above mins, were imparted knowledge of
questions lies in one simple word, religion, philosophy, and other an-
education. And hardly anyone would cillary branches while the warrior
disagree with me when I say that it class, the Kshatriya, were trained
holds much more prominence in the in the various aspects of war-
Indian context. Yes, that‟s true. fare.The business class, the Vai-
Throughout your lifetime, education shya, were taught their trade and
is one of the most important things, the lowest class of the Shudras was
rather the most important at some generally deprived of educational
occasions, which goes on in your advantages.The book of laws, the
mind either consciously or subcon- Manusmriti, and the treatise on
sciously. Our parents spend their life- statecraft the Arthashastra were
time earning with their sweat and among the influential works of this
blood to ensure a decent and possibly era which reflect the outlook and
the best education for us. understanding of the world at the
But does the role of education as an
economic agent limit itself at the edu- Apart from the monastic orders,
cational institutes only? Let‟s just institutions of higher learning and
have a quick look around us before universities flourished in India well
we jump to a conclusion. Or let‟s just before the common era, and contin-
turn on our Television sets. And ued to deliver education into the
ahoy!!! We are flooded with companies common era. Secular Buddhist in-
providing services like education stitutions cropped up along with
We start this article with a loans, child life insurance and many monasteries. These institutions im-
few obvious yet more. So, I guess we can safely as- parted practical education, eg.
interesting questions. sume that education as an economic medicine. A number of urban
What was the first thing agent goes much beyond the primitive learning centres became increas-
that came to the minds of concept of schools and universities. ingly visible from the period be-
your parents when you tween 200 BCE to 400 CE. The im-
were a 4 year old toddler Now that we have established the im- portant urban centres of learning
playing around expertly portance of education as a self sus- were Taxila and Nalanda, among
with the Lego building set taining and most importantly, a sup- others. These institutions system-
gifted to you by your porting agent to other industries and atically imparted knowledge and
aunt? What was the most services, let‟s just contemplate what attracted a number of foreign stu-
important question facing exactly the education sector is doing dents to study topics such as logic,
your family when you had for its own popularity or publicity. grammar, medicine, metaphysics,
set foot in class Xth or arts and crafts.
But before we critically examine and
XIIth? And going by the
draw conclusion in the later part of
current trends, what was Following independence in 1947,
on the top of your mind this article, I would request the read-
ers to treat education as just another Maulana Azad, India's first educa-
when you were in your
industry. By saying this, we in no way tion minister envisaged strong cen-
final year of graduation?
are trying to undermine the impor- tral government control over educa-
tance of teachers and our Alma Mater tion throughout the country, with a
in our lives. We will always be in- uniform educational system. The
debted to them for what we are today. next big breakthrough in the edu-
But my request will lead us to a logi- cation sector came with the privati-
cal and thoughtful analysis of strate- zation of education in India. Along
gic marketing in the education sector. came a new wave of colleges mush-
rooming through the length and
Monastic orders of education under breadth of the country. Education
the supervision of a guru was a fa- as an industry was seeing a new
vored form of education for the nobil- dawn with some big corporate
ity in ancient India. The knowledge in names entering the arena. This was
these orders was often related to the essentially the time when the need
tasks a section of the society had to of „differentiation‟ arose.



The need to provide students with a cause/ ting by sales representatives and agents,
motivation to join college ABC instead of scholarships & use of alumni. Amidst all
the competitor‟s XYZ was what propelled the this little or no attention was paid to the
education sector to turn towards big time quality of infrastructure inline with the need
advertisement in electronic, print and other of international students in the home uni-
modes of mass media. And now, education versity. However, this approach is now fac-
is a global product with institutions world- ing many problems, some of which include
wide competing for students and finding increased competition from the national (&
ever more creative ways to satisfy student not only international players) and a focus
needs and preferences. With the continuing on the students‟ demands with increasingly
rise in the preference for flexible distance available choices and information. Hence, to
learning, educational institutions are finding change this we require a resource demand-
that when students and faculty have signifi- ing transformation process. The foreign uni-
cantly different cultural backgrounds and versities need to rethink their strategies
learning styles, the expectations of the and invest in quality infrastructure, staff
learning experience can be unfulfilled. and facilities. Also, with an increasing num-
ber of international universities offering
But when you see education as an industry, similar courses at similar prices at multiple
the main questions that come up are: - locations, the threat of commoditization of
education looms large. The pertinent ques-
„How far are educational institutions really tion which the foreign universities must ask
“customer-oriented”? themselves is “can they differentiate them-
selves on the student experience instead of
Do they choose the most appropriate market
qualification?” The answers to all these
segments for their organization‟s strengths? questions have been found out by the for-
Is there consistency between the segments eign universities in the following ways: -
targeted and their product offerings?
 Going alone is becoming increasingly
How far are they aware of the complexities of difficult so renewed focus on partner-
the decision processes of the “buyers”? ships and collaborations

Is it appropriate for educational institutions to  Growth of private sector provision and

become “marketing-oriented”? transfer of provisions from public sector
to private sector
So in the light of the above questions let‟s
now analyse the different possibilities in the  Joint venture public-private partner-
education sector where marketing can be ships
applied to get favourable results. The main
sectors picked are foreign education setup  Renewed focus on experience, reliability,
and distance learning programs. safety and employability of foreign stu-
The first sector we pick up is the foreign
education sector. According to the latest sta-  Interoperability- credits and recognition
tistics, 2.2 million students study abroad between home universities and foreign
worldwide and the numbers are estimated to institutions
grow beyond 3.72 million by 2025 (IDP,
2007 forecast). The leading 3 destinations  Improving the cultural outlook of the
for international students reap in excess of universities
USD 45bn$ annually. But don‟t let these
 Focus on networking through internet
mind boggling figures confuse you. Being
like social networking sites
truly international is no longer an option.
Positioning and focus in a competitive envi- Moving on, lets study the application of
ronment, creating and investing in assets to marketing principles, to the educational in-
support internationalisation, global partner- stitutes, through the very famous 4P ap-
ships and alliances and creating a brand proach and analyse what can be their differ-
dialogue with the students are a few among entiating factors : -
many initiatives of the foreign universities.

The traditional marketing approach was pri-

marily based on the focus of sales, globetrot-



Moving on to the last section of the article, we

shall see the future of marketing techniques in
Some authors suggest that education is a prod- the educational set up. The first point we con-
uct. For example; Kaye suggests looking at dis- sider here is the referral system of marketing
tance education as a product instead efficiently which though has been used for quite some
use our resources, the needs of the student/ time, finds an increased relevance in the cur-
consumer should be assessed. By doing so, we rent scenario. As more and more foreign uni-
can learn from the students and then apply versities are wooing students of Indian origin to
that knowledge to attract future students while pursue courses offered by them, referral mar-
meeting the needs and improving upon the ser- keting may be an Innovative tool in their mar-
vices offered to the current students. The prod- keting efforts. For this we should be well con-
ucts have a different name, logo, colour and versed with the concepts of relationship mar-
physical attributes. We can say that distance keting. Relationship marketing, as the name
education institution is a brand and a brand is suggests, means developing long-term bonds
a way of differentiating one product from an- with users by making them feel good about
other; the greater the perceived similarity of how an institution of higher education relates
products, the more important the brand in es- to them. The idea is to develop and maintain
tablishing the differences. Some schools will strong personal relationships, feelings based
clearly feel that they are different from others, on positive interactions and perceptions. In
or that the market perceives differences, which many ways relationship building and mainte-
makes it less important for them to establish nance is the essence of marketing. The market-
their corporate identity. ing exchange process is used to build and
maintain positive relationships with continuity
and consistency. A good way to begin relation-
ship marketing is to build concentrated core
This concept embodies more than a value that groups of key target audiences and focus atten-
someone will pay for it. The meaning associ- tion on that group, with the idea of creating a
ated with price changes is contextual. Institu- "ripple effect" as members of that group help
tions have different pricing policies and all in- carry the school's messages to their friends,
stitutions compete against each other to in- associates and colleagues. Referral marketing
crease their application and enrolment rates. i.e., making use of existing students to canvass
Pricing policies will impact student choice be- for potential students is being practiced by for-
tween institutions. eign universities. The existing students are per-
ceived as important among stake holders.
Hence, the concept of referral marketing can be
a boon for the Indian educational set ups
It is a means of getting the product into the which are struggling to retain their students in
consumer‟s hands. The personality of the place the wake of increased foreign competition.
sends messages to the target audience. The
vehicle which is used to reach the students can So much is the importance of marketing in the
be a physical location or a virtual space where educational set ups that there have been re-
the connection speed of internet used, e-mail, search papers about quantifying the demand
can serve as a differentiating mechanism. forecast in the future. I would like to wrap up
this article by a simple yet powerful quota-
tion : -
“marketing is not about trickery or even insincer-
Promotion is a means of communication be-
ity, it‟s about spreading ideas you believe in,
tween the seller and buyer. It includes adver-
sharing ideas you are passionate about, and
tising, public relations, personal selling, pub-
doing it with authenticity. Its important to real-
licity, and sales promotions. If one higher edu-
ize that‟s it is easier to grow with happier people
cation institution wants to enrol more students
than it is to find new strangers to accost”
than other, it will need to use corporate adver-
tising or engage in activities that create a liai- -Seth Godin
son between the students and the institutions.
Publicity provides media coverage to the insti-
tutions and visibility can create confidence
about an institutions reputation and quality Mafla Mudgal is a 1st year PGDM student at IIM Calcutta. He
perceptions. holds a Bachelors degree in Mechanical Engineering from Delhi Col-
lege of Engineering and can be reached
at maflam2011@email.iimcal.ac.in



Welcome to Marketing, the third epoch!

The first epoch of marketing was the this era. ,Some of it leading to micro
most stretched. The early seeds of - segmentation, and consequently
our profession were laid somewhere brands making that extra effort to
in the wake of the Industrial Revolu- establish consumer connect, and
tion and continued till the early part moving from the rational to the irra-
of the last century. This was the tional and then beyond.
period when products started being This leads us to the third epoch of
invented to meet basic human needs marketing. What is it? When did it
– the electric bulb, the motorized start? Was it the advent of the inter-
car, the safety pin – and thus set the net? I‟ll address the questions in
stage for elementary definitions. reverse. As I said at the start, no
We are in the middle of a This era was also completely prod- this is not just about the internet
great revolution in uct centric, and focused on manu- and internet marketing. The advent
marketing deed and facturing – a car provided transpor- of the internet was perhaps the cata-
corresponding thought. I tation, a bulb light and so on. Much lyst for change and accelerated the
must admit it was a
of marketing revolved around ensur- transition of marketing from the pre-
struggle not to call this
ing the transfer of the good from the vious era. Infact, as often said the
“Marketing 3.0”.
However, this sobriquet manufacturer to the user and all the internet is to the 21st century what
has already been usurped elementary functions required to electricity was to the 20th. The
by many marketing make it a success, including avail- ground-work of this marketing era
scholars and practitioners ability and communication. In In- had thus started a couple of decades
of the current era to dia, we experienced this era much earlier and we are now in the midst
define different aspects after independence given the overall of it.
and offshoots of internet shortages and a nascent manufac- This epoch is all about Experience
led marketing. I am not turing industry being set up. Marketing. This epoch marks the
going to suggest that all The second epoch of marketing saw demise of classical marketing
marketing in the current many success stories through the thought, and instead brings to the
era is equal to internet late 19th and most of the 20th cen- forefront multiple possibilities in the
marketing (though much tury. This epoch also saw the tran- sphere of marketing. There are three
of it is related to the sition of marketing from selling different vectors of change in this
internet in some way or products to establishing brands. epoch, best represented as the evolu-
the other), and thus the The advent of more players saw the tions across consumer expectations,
need to stay away from resultant increase in options, and customization and computer or tech-
the debate of Marketing led to the need for “differentiation”. nology innovation.
3.0. Instead the heralding It could be in terms of the rational Consumer behavior and expectations
of the third era of like form, feature, cost, shape, size, have changed dramatically over the
marketing! To reach the color or even in terms of irrational, last few decades. Today consumers
tenets of the current era, it emotional, psychological attributes. are (always) accessible, connected,
is important to give a
The holy portals of most marketing demanding, empowered, intelligent,
quick dekho into the past
theories, philosophies and frame- skeptical and even vengeful. They
from my perspective and
that will also help lay the works as we know it today were built lack patience, have no loyalty and
evolutionary path. for this era. You thus had the “4 P‟s are pressed for time. They don‟t
of marketing”, defined your “target wish to be interrupted, sold to or
segment” and build a “brand posi- campaigned any more. The basis of
tioning statement” and tried to build products, brands and thereby mar-
“consumer loyalty”. This period ac- keting has changed completely. The
tually saw the maturing of market- old and dated concepts don‟t hold
ing thought into an important field any more. A brand has to be crea-
of theory and practice from both tive, engaged and hopefully relevant.
academicians and business. The This epoch continues to question the
progress of fast moving consumer gospels of marketing thought. As
goods like soap, tooth-paste, deter- one of the senior managers of this
gent etc provide a graphic represen- company put it: What happens to
tation of the evolution of the second the principle of 4P‟s of marketing, if
epoch of marketing. Even today, three out of the four P‟s are zero?
many marketers continue to derive The brand and company in question?
succor from the building blocks of Google! Their products are free, the



Epoch First Second Third

Time-Period 1760 – 1850 1850 - 1980 1980 till today
Marketing Focus Product Brand Experience
Proposition Functionality Differentiation Engagement
Appeal Rational Emotional Sensory
Association Availability Loyalty Commitment
Life-cycle Eternal Long Ephemeral
company doesn‟t really advertise and there isn‟t is what it does, where it fits in one‟s life and
any specific placement of its products. This ep- most importantly how it makes you feel.
och of marketing is based on a foundation of Many brands are redefining their framework
technology, and the immense possibilities that from being a packaged good to a complete ser-
technology can enable. And the internet pro- vice. Personal products brands moving onto
vided the catalyst for bringing these possibilities personal care are one end and Luxury brands
to the vast multitude of humanity in the best, extending their portfolio to provide a range of
fastest and most impactful manner. accessories and accruements is another.
The onset of this era is perhaps best reflected This is the new realm of marketing. And as
with the emergence of a brand whose experience marketers we need to define what really we
can't be equated with any sensory aspect – wish to create in order to make an impact here.
touch, feel, hear, see or taste. An ingredient We therefore need to figure out a complete en-
brand which signifies trust and reliability, and a gagement plan with the consumer appealing
promise of technology innovation. And a brand across different touch points, and to multiple
which has constantly stood as guarantor of senses. We need to provide a holistic experi-
break-through computing performance. The ence which communicates the tenets of the
brand in question? Yes, Intel. The Intel brand brand and expect the consumer to thus connect
has created the world‟s best known, longest ever with it, and hopefully when she needs spend
and most extensive co-operative marketing cam- time or money to acquire it.
paign “Intel Inside” and its signature bong is The Marketing Epoch‟s if tabulated across dif-
heard every minute, somewhere in the world! In ferent brand elements would look like the table
today‟s era the marketplace has become clut- shown. Above.
tered with a plethora of choices. At the same
time consumer demands have evolved to a level
of “soya milk froth free decaf latte” granularity. Mr.Prakash Bagri is currently Director of Marketing, Intel South
Technology innovation is the driving force be- Asia. We, as editors of this digest, are thankful to Mr.Prakash, an
hind this accelerated evolution. And there are expert with more than a decade of marketing experience, for sharing his
technology tools which help marketers meet this industry insights on the evolution and future of marketing.
role. Customization and personalization is de
rigueur for a brand to stand out amongst the
clutter. Though marketing has to be non-
invasive, the brand has to still attempt engage-
ment and interaction with the consumer. To-
day, consumers expect their brands to be hon-
est, transparent, socially conscious, environ-
mentally friendly, participative, co-operative etc
and in return they reward you with their time,
attention and hopefully, their money. This has
to be unobtrusive, responsible, apolitical and
still impactful. Today, brands shouldn‟t seek
loyalty, but instead hope that they can interest
and engage the consumer and thereby win their
commitment. In other words, in this era the one
who stands out (and it could be a brand, prod-
uct or service and more likely a combination of
all the three) is one which is able to engage with
customers in a holistic manner appealing to
their senses and thereby establishing an emo-
tional connect with them. The brand experience



Sidestepping the Commoditization of Disruptive Innovations

We live in a world today, where every Marketing as a function plays a key

organization is constantly on the role in the effective delivery of any
lookout for means to differentiate value proposition, be it a product,
itself from the others that comprise service or in any form for that mat-
its industry; for ways to achieve sus- ter. After the core operation, it is
tainable competitive advantage; and marketing that ensures that the tar-
in very, very simple terms, for ways get consumer segments are reached;
to survive. In this milieu, one often and that the external gaps in value
comes across strokes of genius, delivery are minimized. Given the
which in the blink of an eye, set a significance of marketing, we would
particular market player apart from look at the core issue through two
the crowd; and in the process, rede- viewpoints:
fine the way business is done, and
even looked at in that industry. An 1) Managing innovations in the mar-
event of such a scale and scope, is keting domain, so as to be able to de-
often what one would call a disrup- rive sustainable competitive advan-
tive innovation. tage from them.

A disruptive innovation is one which 2) Capitalizing on core innovations by

Today’s business leveraging upon a sound, directed
environment is breaks the continuing stream of in-
cremental impr ovements and marketing campaign.
characterized by intense
competition, directed changes, to radically alter the devel-
opment, and very conception of said Coming first to marketing innova-
primarily at the basic need tions, one can readily observe that
to survive. In such times, product/service/industry. And as is
the case with any mine that strikes the marketing strategies adopted by
firms continuously watch
gold, this newly irresistible area be- a firm should be determined to a
out for avenues by which
to gain competitive comes the hotspot for all firms con- great extent by the existing brand
advantage over other sidered worth their salt. In indus- perception that it enjoys. Discount-
industry players. tries unlike Pharmaceuticals, where ing cases of deliberate image make-
Disruptive innovation, a concrete protection mechanism overs (which entail a separate, dedi-
referring to a concept that (read Patents and the like) is absent, cated campaign altogether), one can
can radically alter the the competitors are quick to repli- see that a gauche mismatch between
trajectory of the industry cate the product/service/model, the brand‟s identity and the new of-
itself, is an attractive with augmentations inherent to their fering portrayal can lead to unde-
respective firms. Thus, what had sired confusion and ambiguity in the
alternative for firms.
been a breath of fresh air to con- impressionable consumer psyche.
However, we consider the sumers a week back, is suddenly Thus, due consideration to this fac-
next phase wherein these spreading all around, and halfway to tor, and adequate preparedness for
very innovations could get becoming the next homogeneous the same is necessary to ensure that
commoditized, with more commodity. And with that of course, an ingenious innovation does not
players engaging in similar over time the idea loses its initial backfire, and then to make matters
endeavours. We look at sheen, wearing itself off from over- worse, play straight into the hands of
the factors that could help use and exploitation. the more suave competitors.
prevent such a
Economists and game theorists Coming to the issue of commoditiza-
phenomenon, and the would refer to this phenomenon of tion with respect to disruptive inno-
means to effectively decaying valuation as “Tragedy of vations, we can see from the very
leverage upon the the commons” or “Decreasing mar- outset, that such a mass replication
marketing function. ginal profitability”, both of which is possible only when the entry barri-
symptomize the winding trails of ers for such an introduction are ei-
commoditization. And it is here, that ther too low, or easy to transcend.
we endeavour to step in, and if not Thus if a retail chain were to offer a
devise a way out of this piece of oft drastic 70% off Sale once a month,
repeated history, then at least sit then it alone would not serve the
down with it, and get to know it bet- purpose of truly differentiating it in a
ter! sector growing at a frenetic pace.



Put another way, if such an initiative is not source comes to the fore, as a point for poten-
backed with the requisite supply chain and tial differentiation: the people in the firm.
sourcing efficiencies, it won‟t be long before Thus, it may be seen, that often it is the firm’s
the firm starts to bleed. And to make mat-
ters worse, other more lean competitors
human resources that form the core of its mar-
could then launch a similar programme, keting strategy, highlighting how the people
only more aggressively and credibly posi- contribute to adding unique value to the
tioned to deliver.
particular firm. Examples of this strategy
To take the previous example one level abound, from Intel‟s “Superstars”, to
higher, there might be a phase where all in- Google‟s famed “20% time” policy. And with
dustry players are more or less in similar this, strategically aligned HR processes en-
phases of maturity and efficiency. In such a ter the fray for sources of sustainable com-
case, a soundly backed discount sale initia- petitive advantage.
tive would be easily replicable, and this
could over time lead to a flood of such offer- Thus, to conclude, one may note that dis-
ings, and even to the consumer growing in- ruptive innovations by themselves, devel-
creasingly indifferent to them. When such a oped on an unsustainable model can never
stage is reached, it is the beginning of the be of use to a firm. On the contrary, such an
end of the value for what had once been a effort shall more often than not end up be-
unique innovation; the commoditization has ing in the firm‟s detriment. Further, such
kicked in. endeavors must be based on fundamentals
that are intrinsically hard to replicate for
others. Finally, the marketing strategies
should be designed in a way that does not
Thus, to counter the forces that lead to a conflict with the image of the firm, and if it
collective exploitation of an idea that an en- is aimed at a repositioning, then it needs to
terprising firm brings to the market, the firm be adequately armed.
in question must ensure that there is more
going for it than just the “first-mover‟s ad-
vantage”. That is, the innovation must be
rooted in something that is quintessential to Anand Justin Cherian is a 2nd year student of IIM Cal-
the firm, like its unique work culture, lead- cutta, specializing in Behavioral Sciences and Systems. He holds a
ership vision or even something more tangi- Bachelors degree in Information Technology Engineering from
Netaji Subhas Institute of Technology. In his free time, he likes
ble like restricted access to sources/
blogging, painting and photography. He can be reached at an-
suppliers. Further, it must be noted that if
such a commoditization were to indeed take
place, then it is not only a loss for the firm
that introduced the concept, but more sig-
nificantly it is an opportunity lost for the Varun is a 2nd year student of IIM Calcutta, specializing in
industry as a whole. And the solution to this Marketing. He holds a Bachelors degree in Mechanical Engineer-
problem is not to form a cartel and fleece ing from Delhi college of Engineering. Prior to joining IIM Cal-
the pennies out of a society slowly starting cutta he has worked with IBM and Royal Bank of Scotland, for
to walk on its aspiring, middle class feet; a total of 3 years. He can be reached at va-
rather, firms would need to constantly inno- run2010@email.iimcal.ac.in.
vate in a manner that accords to each one of
them a niche pocket through which to grow,
overlap and compete. With time, consolida-
Sarang Shahane is a 2nd year student of IIM Calcutta, spe-
tion is inevitable in a fragmented industry,
cializing in Marketing and Finance. He holds a Bachelors degree
and in the case of one that is concentrated,
in Information Technology Engineering from NIT Durgapur.
one can then look forward to epic marketing Prior to joining IIM Calcutta he has worked with Amdocs Ltd
battles, a la the Cola wars. In either case, for nearly 2 years. He can be reached at
firms would be required to dig deep and sarangs2010@email.iimcal.ac.in.
come up with some one thing that is unique
in them.

In this regard, when it comes to differentiating

yourself, especially in an industry where the
core product/service is easily commoditized
(low cost airlines, retail etc.), one essential re-


PAGE 32 Sales Role in Fixed Income Securities Market
A brief background of the mar- mation asymmetry and it is very
ket important to be well aware and well
connected. By performing market
The market for fixed-income secu- information dissemination, brokers
rities issued by Indian companies perform a service for their clients in
is limited and illiquid. The liquidity hope of getting business. They per-
falls exponentially below the high- form price discovery for each secu-
est investment grades. Hence the rity and negotiate an agreement to
most active sellers of these securi- pocket a commission. Through their
ties are large Indian corporates intimate knowledge of client prefer-
with good credit ratings. The larg- ences and history, they perform
est and active buyers are mutual number of additional value added
funds, insurance companies, gov- services like connecting preferred
ernment agencies like LIC, IFCI, sellers to issuers, providing kick-
IDBI, UTI, EXIM, etc. Smaller buy- backs on older deals, doling out fa-
ers include PE firms, specialized vors, disseminating market informa-
banks, etc. The liquidity in this tion to clients, etc.
market also depends on the issuer
Sales jobs and financial and the sector of the issuer. For Personal relations – This is an im-
wizardry jobs conjure up example, debentures issued by portant differentiate which helps
very different images in our manufacturing companies with clinch deals. Trust by your clients
mind. However there is a assets as collateral are preferred in your evaluation of the market will
confluence where one needs and need to pay lesser interest get you business. This is developed
to use skills needed by both than those by IT services compa- by knowing your clients well and
these job roles when you nies. being able to read what they do not
work as salesperson for say. For example, there can be very
fixed income securities. The deals are arranged by brokers different meanings when person A
What roles and challenges like Merrill Lynch, Deutsche Bank, says that „It looks difficult to do this
does the nascent Indian ICICI, etc. in the OTC market. deal‟ than when person B says it. If
market provide? And how They are in touch with both the person A was a Japanese, it would
do you successfully establish
buyers and issuers of such securi- mean a refusal to do the deal while
yourself as a good
ties throughout the year and work if person B was American, it would
salesperson? The author
shares his experiences and to service individual client needs. mean an interest in negotiating fur-
learning acquired while However since a number of bro- ther. Knowing your client is how
working as an analyst with kers are active, there is significant this difference can be judged.
Merrill Lynch this summer. competition in this arena. Usually,
the only criteria used for choosing Personalized service – By under-
between competing brokers is the standing the needs of the issuer and
price they negotiate for their cli- customer a priori, brokers can sig-
ents. The quickest broker to pro- nal a personal interest in the busi-
vide an acceptable price wins the ness of the clients. For example,
deal. Clearly, the way to win as a brokers track when a large commer-
broker is via superior sales strate- cial paper (CP) issue bought by cli-
gies. ent XYZ from issuer ABC is about to
expire. As a result, they can proac-
So how do you differentiate? tively ask ABC if they would like to
again raise money by issuing a
Information asymmetry – The sales fresh CP two weeks before the ma-
manager for Nirma uses the power turity. Simultaneously they can
of his brand to sell his product track what XYZ intends to do with
while a Big Bazaar uses the vol- the inflow of money at maturity and
ume of sales as a tool to offer lower if they can fix up a deal with an-
prices and entice buyers. Here, other issuer. They can perform su-
information is the salesperson‟s perior price discovery, work faster to
biggest sales tool. Being an OTC sell securities and clinch deals with-
market, there is significant infor- out too many competitors even



coming to know of the deal. Also, by knowing the urgency of the situation and more information
than competing broker, one can get a better deal covenants, spread positive reviews of the clients
and enhance or tarnish their image.
Employing these three strategies can consistently get you deals and clients in this market and
help you become a successful securities salesperson.

Siddharth Chaudhari is a 2nd year PGP student at IIM Ahmedabad. He holds a Bachelors degree in Electrical Engineering from IIT,
Bombay and can be reached at 8chaudharis@iimahd.ernet.in

1. Geophysical Services Incorporated (GSI) a pioneering provider of seismic exploration services to the petroleum
industry during and after World war II, made a foray into electronics and designed products for the US army and
navy. How is the company today better known as?
2. Karl Elsener, the founder, started this company to create work in the sparsely industrialized central Switzerland. In
1897 the product was created and legally registered in the small village of Ibach. Since that time it has become well
-known in more than 100 countries for precision, quality, functionality and versatility. Name the product and com-
3. Living in the crowded streets of Old Delhi, Davinder Kumar Jain, understood the potential of the pen manufacturing
way back in the early 1960s. At the age of just 19, DK started producing fountain pens, a writing instrument that
deeply fascinated him, thus laying the foundation of the largest manufacturer of writing instruments in India. Iden-
tify the company/brand.
4. Originally called New Lord & Company, this company was born as a small tailoring shop in the year 1947. A couple
of years later, it was bought over by Mr Arjan Daswani. Under the aegis of Daswani, the company transformed it-
self into a mega shirt store. Today, it’s one of the established names in the Indian fashion industry and claims for
bringing international acclaim to Indian tailor craftsmanship. Which brand/company is being talked about?
5. The enterprise could be considered to have started in 1901 when William aged 21,drew up plans for a small engine
that displaced 7.07 cubic inches and had four-inch flywheels. The engine was designed for use in a regular pedal-
bicycle frame. Over the next two years William and his friend Arthur labored on their little bicycle. What company
was founded by William and Arthur?
6. This company, originally known as Standard Oil of California, or Socal, and was formed amid the antitrust breakup
of Standard Oil in 1911. It was one of the "Seven Sisters" that dominated the world oil industry during the early
20th century. It is now one of the world’s six ‘supermajor’ oil companies and the largest producer of geothermal
energy in the world.
7. The way in which Frank Robinson wrote the name of a product was so elegant and original, it was decided to use
his handwriting for the logo of the product. Name the product that even today uses Robinson’s script as its trade-
8. After serving in the subscription department and as a copywriter for Esquire, he left in January 1952 after being
denied a $5 raise. Took his biggest gamble in 1953 by raising $8,000 to launch his business venture. Made an ap-
pearance on a popular TV series. Has a species of rabbit named after him and is known as one of the world’s best-
known womanizers.
9. Born on June 7, 1975, she did her schooling from Bombay Scottish School and later on joined Mithibai College. She
was not interested in academics and ventured into television at the age of 19. Soon changed the face of Indian tele-
vision industry and completely dominated it. Awarded with Ernst & Young (E&Y) Startup Entrepreneur Of The Year
award in 2001.
1. Texas Instruments; 2. Victorinox (Original Swiss Knife); 3. Luxar Pens; 4. Chirag Din; 5. Harley Davidson Motor Cycles; 6. Chevron;
7. Coca Cola; 8. Hugh Hefner; 9. Ekta Kapoor



Valuation of TV Advertising
The slowdown in the Indian econ-
omy has meant that more and more
firms are looking to control expendi-
tures seen as unnecessary and add-
ing little value. For most firms, it‟s TRPs= 47.5% or 47.5 TRPs
the promotional and advertising
budgets that get hit first. In such a This is can be construed in two
scenario, managers need to justify ways:
their advertising spends and meet 1. 47.5% of the target audience
required advertising ROI targets. watched the program for its en-
This calls for an accurate way of tire duration (i.e.10 mins).
measuring advertising effectiveness.
Effectiveness is essentially measured 2. The entire target audience
through the advertising medium‟s watched the program for 47.5%
reach. For TV, advertisers want their of the program duration.
The author stresses the ad to be seen and hence the task is
importance of advertising to find the cost of reaching an eye-
effectiveness in the face ball. The primary indicator used in The first meaning suggests that TRPs
of tighter promotional TV advertising deals is „Cost per rat- give the percentage of the target au-
and advertising budgets. ing point‟ or CPRP. Another parame- dience that has been reached by a
Advertising effectiveness ter, „Cost per thousand impressions‟ program and hence also reached by
of a medium is primarily or CPT may also be used. the ads shown in the program slot.
measured through its
reach, that is, how many The following terms will be useful to
of the company’s target understand the valuation of ad Gross rating points (GRPs)
customers the medium deals. GRPs represent the sum of all TRPs
reaches, and for how achieved in a period. Hence, GRPs
long. A system of metrics are not program-specific and can be
is discussed, one that Universe calculated for a diverse set of TV pro-
focuses on calculating the The Total/Actual number of grams.
cost of reaching one people in a defined target audience.
intended eyeball. The
article explains how ad TV rating points (TRPs) Cost per rating point (CPRP)
deals between TV
channels and advertisers These are measured by audience CPRP represents how much it would
are valued based on these measurement agencies like Televi- cost to deliver one target rating
metrics. The author then sion Audience Measurement (TAM) point, or 1% of target audience, i.e. a
compares CPRP and CPT and these help to express the viewer- TRP of 1%. That is, CPRP represents
and explains how using ship for programming on television the price charged by a TV channel
one method over another in numerical terms. from an advertiser to deliver a TRP of
may be advantageous 1%. In the Indian TV industry, this
based on whether one is a TRPs take into account two factors:
CPRP is for a 10 second slot during a
marketer or a TV channel. 1. Reach- The number of viewers for program.
a particular program
2. Time Spent- The amount of time Cost per thousand impressions
spent by these viewers watching (CPT)
the program
It is the cost of delivering a thousand
Example: Consider the universe to be impressions. For example, a viewer
made up of 4 viewers A, B, C and D. watching a 10-second slot in which
The following shows the viewership an ad is shown would be one impres-
details for a TV program. sion.
Person Time Spent Minutes Available
A 6 10
B 0 10
C 8 10
D 5 10



Marketing Gyan!!
Valuation of an ad deal
A television channel has an estimate of the ad  Canned beer was first introduced in 1933,
inventory that it wants to sell in a year (or in New Jersey.
more). This ad inventory refers to the total ad
time it can sell, say 10000 hours in a year. The  The types of horses that have been utilized
channel sells a portion of this inventory to ad- to name Ford automobile products are
vertisers in long-term deals of 1 year (3 year Bronco, Mustang, Pinto, and Maverick.
deals are less common). The channel promises
the advertiser a specific number of GRPs that it  The first supermarket was located on Long
will deliver during that one year and the adver- Island, Jamaica Station, New York. The King
tiser is charged a price for these GRPs. Kullen Store was a product of the Great De-
pression era and supermarkets have evolved
Value of the deal= CPRP X GRPs X total
tremendously. The products were set out on
number of slots
pine boards resting on boxes.
Each of these slots is of 10 seconds. The issues
that form the focus of the negotiations are the  McDonald's first restaurant was located in
number of GRPs and the CPRP. If the slots sold Des Plaines, Illinois. It opened on April 15,
by the TV channel fail to provide the promised 1955.
GRPs, the TV channel compensates by giving
the advertiser bonus time, i.e. ad slots free of  Drive-through service was initiated in
cost. If instead, more than the promised GRPs McDonald's stores in 1975. Today, it is fea-
are delivered, the advertiser would have to pay tured at almost every unit that also has
some extra for the extra GRPs. These details are parking.
thrashed out in intense negotiations between
channels and advertisers.  The first television commercial appeared on
Calculating CPT July 6, 1941. It was a commercial for Bulova
The cost per thousand impressions is an indi-
cator of the absolute reach of the TV medium. It  The Romans had a goddess, Juno Moneta,
is calculated as follows: who was the goddess of Warning. She
CPT= total value of the deal/ number of peo- warned the Romans of dangers. The Romans
ple reached (in thousands) were so appreciative that they set up a mint
in her temple. The name Moneta in the old
Since 1 TRP means that 1% of the target audi- French language was "moneie" which even-
ence is reached, the total number of people tually became our word for money.
reached can be found out using the universe
size.  McDonald brothers' names are Maurice and
Number of people reached= TRPs X universe Richard. They owned a drive-in restaurant
size in San Bernardino, California.

What’s the right metric- CPRP or CPT?  Nike was the ancient Greek goddess of vic-
It depends on whose point of view we consider. tory.
Most deals today are done using CPRP as the
measurement metric. TV channels claim that  Dilated pupils are a good indicator of excite-
this system of valuation is unfair since CPRP is ment. When training salespeople they can
based on rating points, which indicate only per- be taught to use indicators of product inter-
centages of the target audience reached. Con- est by looking at their customers pupils.
sidering that the target audience watching
these channels is increasing in absolute terms,  B.M.W stands for "Bayerische Motor Werke”
more people have to be reached by the TV chan-
nels to get the same TRPs. TV channels are
thus demanding a shift to using CPT in negoti-  7 Up was invented by C.L. Grigg and was
ating ad deals with advertisers. named as „7 Up‟ since it contains '7 natural
flavors' and carbonation.

Amogh Bhole is a 2nd year PGP student at IIM Ahmedabad. He

holds a Bachelors degree in Electronics Engineering from VJTI, Bom-
bay and can be reached at 8bholea@iimahd.ernet.in



Ogilvy & Mather Trivia

1. The Asian Paints 3. Pulse polio
The Asian Paints Exterior Emul- The campaign against Polio was
sion campaign sought to upgrade designed to create a strong feeling
cement paint users, in a tradition- of responsibility amongst parents
ally low and shake them out of their inertia
involve- so as to ensure maximum turnout
ment cate- on the National Immunization
gory. Days. It used the angry man per-
O&M lev- sona of Amitabh Bachchan, the
eraged the screen legend of Indian cinema to
brand's admonish parents for their irre-
interior sponsible behaviour and apparent
equity and its association with disregard for the safety and happi-
beauty benefits to position its ex- ness of their children.
teriors portfolio as “Time Proof
Beauty” paint The brand grew by
43% and the sign off "Badhiya
Hai!" has become part of popular
consumer lexicon.

2. Center shock
Before the launch of Center As a result of the campaign, 19
Shock, the confectionery market districts reported over 50% booth
in India was on the road to de- coverage after February round; 2.8
cline. Within the confectionery million children were immunized in
market , the chewing gum seg- January and additional 6 million in
ment was showing a 23 % decline. February, as compared to Novem-
(AC Niel- ber 2002 round. Over 90% respon-
sen Re- dents reported that the Amitabh
port). Un- spots were a major influence in
der these motivating them to come to the
circum- booth.
India Ltd. 4. Sprite
decided to launch a product that The clear lime drink Sprite stands
would "shake up the market". for honesty, confidence and sim-
plicity. They needed to connect
with the teen and make the brand
The most startling facet of the aspirational. This was done by po-
product, Center Shock, is its sour sitioning Sprite as the No Pretence
taste…in fact, sour beyond excep- drink - clear, honest and straight
tional. So much so that it shakes up - what you saw was what you
you up. The creative challenge was got. The tongue-in-cheek campaign
not just to communicate this in a helped the brand grow by 62% dur-
manner that establishes this be- ing the campaign period.
yond doubt for the young audience,
but also to make it memorable.
And above all, shake them up. The
central thought of the campaign,
"shakes you up", was taken for-
ward in on-ground promotions and
media innovations. As a result of
this campaign, Center Shock went
from being a "no brand" to the No.1
brand in the chewing gum category


Is Recession the time to tighten Ad Budget?
“Your outgo must be less than your accounting at Ohio State University
income, and so if income drops, verifies that advertising expenditures
you must immediately take steps to during recession contribute to in-
reduce the outgo”, this small lesson creased earnings by firms for up to
drummed into our heads as chil- three years. The greatest impact oc-
dren sticks to us forever, and is curs in the year immediately follow-
carried forward into our profes- ing the recession and this impact is
sional life as well. Interestingly, the more pronounced for firms offering
same lesson makes us susceptible consumer goods or industrial prod-
during good times, when sales are ucts, as opposed to firms offering
on an upswing, to splurge and to services. This entire philosophy
try things that might not seem es- works on the basic premise that ad-
sential at other times. The same vertisement is considered as a long
people resort to tightening their term investment rather than as a
belts, trimming the excessive flab short term expense.
The ongoing recession and and cutting advertisement budgets,
the tightening of ad the minute sales dip a bit.
budgets by most marketing
Should this be the norm for Ad
firms in India and abroad
budget allocation? „No,‟ says former
have raised a crucial
question about what the chief marketer of Coca Cola, Mr
stance should be during Sergio Zyman. He exemplifies the
these trying times for same with one of the marketing
businesses. This article metaphors: “Marketing money
discusses the benefits of (Advertisement money) is like fuel
having higher budgets for in a car. You take the fuel out of
advertisement during the tank, the car stops, and with it
recessionary pressures. It so does the brand”. So does that
exemplifies its stance by endorse the view that marketing
taking into account expenditure should be held con-
customer perceptions stant, if not increased during reces-
about companies during sionary period? Mr Zyman again
recession and how big wigs comes to the rescue. He juggles the
in the past have pulled same words, but this time taking a
themselves up into a more complet ely dif f er ent st ance:
strengthened position post “Marketing is like fuel. If the engine Advertising during recession pro-
downturn. The article ends isn‟t working- as Coca Cola discov- vides a unique window of opportu-
with a word of caution ered with New Coke in the eighties- nity for investment in building
stating that competitiveness a full tank of marketing fuel is use- strong brand equity, solidifying the
and relative market less”. customer base, gaining new custom-
position should be the ers and more importantly making
most appropriate way to
inroads into the competitor‟s terri-
judge the situation before
With such diverse views, it becomes tory. Most consumers perceive the
allocating ad budgets.
quite essential to dip our fingers lack of advertising during recession
into empirical data. Empirical re- to be synonymous with the business
search results show that the better struggling. This creates a negative
course of action in a downturn is to perception in the minds of the cus-
sustain marketing communication tomers who become more cautious
or actually increase it. You get about the present customer value
more bang for your buck when eve- proposition offered by the firm and
ryone else is laying low, and you more suspicious about the quality of
come out of the recession faster goods and services committed to
with a healthier bottom line. them. Likewise, a vast majority per-
ceives businesses that continue to
Aggressive companies increased
advertise during recession as being
market share on an average of 1.5
competitive or committed towards
points during recessions, while
doing business.
budget-cutters gained only 0.2
points. Roger Graham, professor of



Therefore it becomes critical to advertise give a competitive advantage to a company,

during recession, to maintain long-term there are ample examples, when this did
positive consumer perception of the brand. not work. Popular brands like Barclaycard,
Advertising not only assures consumers of Renault Clio and Nescafe Gold Blend ran
the business reliability in a soft economy, ad campaigns that generated acres of extra
but it can influence where and what they press coverage during 1981-82 recessions,
buy. In recessionary times, price loyalty is but they all lost substantial market shares
greater than brand loyalty, so instead of later on. The point to be noted here is the
reducing ad budgets it would be advisable quality of the ads featured, and the relative
for companies to increase their spends on weaknesses of competing brands are impor-
sales promotions and discounts. tant as well. These two criteria should be
delved into in detail before increasing ad
expenditure during recession.
The top management has the unpleasant
duty of reporting disappointing results dur-
ing recession; then they offer encourage- The truth is that advertising effects cannot
ment by pointing out that all the cost cut- be isolated from other factors. While market
ting measures have been implemented, as leaders who may be able to garner re-
if the stakeholders ascertained that they sources during recessionary trends to fight
wanted all costs to be cut to the bone and price wars and sales promotions with com-
get the ship in order. This leads to the no- petitors, may use the tactics of increasing
tion where advertisements are considered a ad budgets, companies facing tough
form of defensive insurance, and not as choices should not be bullied into believing
profit generators. Top management sets the that advertising is a panacea. For them the
whole marketing budget as a percentage of engine might be too worn out to respond to
expected revenue, and when expected reve- the fuel.
nue drops, they see every reason to cut
But then, the crux of the argument is that
marketing expenditures. But this exposes
advertising definitely has positives attached
the illogic of setting marketing expenditures
to it. Using it you might not be able to get
based on expected revenue. The marketing
quite where you intend to be, but at least
budget is the cause, not the effect. Setting a
you will get to some distance along the
higher marketing budget will get higher ex-
right path!
pected revenue for a company during bad
times. Contrary to this opinion a recent
survey by R3 which manages 100 of Asia‟s
Saikat Mondal is a 2nd year student of IIM Lucknow, spe-
top 500 brands points out that one in every cializing in Marketing and Operations. He holds a Bachelors
four Indian companies have been forced to degree in Electronics and Telecommunication Engineering from
scale down their marketing and advertise- Jadavpur University. Prior to joining IIM Lucknow he has
ment spending because of the ongoing eco- worked with Cognizant Technology Solutions for around four
nomic crisis. But the hard lesson was years. He can be reached at pgp24277@iiml.ac.in
learnt my most US companies during the
1981-82 recession.
In an effort to come out of the red, during
the ongoing slowdown advertisers and com-
panies are turning to desperate measures
to promote their products and increase
consumer spending. Some advertisements
like Pepsi‟s Saturday Night Live have ini-
tially confused the consumers in an effort
to break the clutter. Researchers are of the
view that standing out in advertisements is
imperative during recession even if at the
expense of confounding customers. The zoo
zoo ad of Vodafone might be along these
same lines.

Though it might seem that high spending

on advertisements during recession might



Low Cost Customer Acquisition Strategies for E-businesses

Search engines are a favorite for search engines Flipkart is cautious
most of the startups. Getting listed about protecting their servers from
on the first page of a relevant key- the noise users.
word search (aka Search Engine Op-
timization or SEO) is unequivocally
the top priority. It is important for Social Media has made a consider-
Redbus to be visible for the search able contribution for the increase in
string “Bangalore to Hyderabad” and internet usage, especially for the
Inkfruit would like to sell theme t- young users in India. It is an excel-
shirts to the gaming buff searching lent medium for businesses that are
for information on „Age of Empires‟. targeting the youth. Prasanth Mo-
Inkfruit banks on community inter- hanachandran, Executive Director -
actions and online thematic contests Digital Services at Ogilvy, cites the
The first myth of online
to keep the buzz around, which example of the 40,000 strong Zoozoo
marketing is that it is cheap.
helps it to be in the first page of community of Facebook to under-
From what we have learnt
from our exploratory research search. Constant updates and add- score the importance of Social Media.
Indian online businesses ing linkage from other sites (creating Noel Manoj of BankBazaar.com be-
typically spend around Rs 40 affiliates) helps Studyplaces.com to lieves that Social Media will have a
to Rs 400 per customer keep up its ranking. BankBazaar‟s major influence in Internet Market-
acquired. Advertising online efforts paid returns when it moved ing and purchasing tendencies. Pras-
however is better in terms of from the 20th page of search to the anth from Ogilvy cautions about the
the ability to send the message 1st page in less than 6 months. demographics of people using social
to a target segment and get a BankBazaar promotes its site media sites. More than 40% of the
faster response. The second through paid listings (aka Search users of Facebook and Twitter are
myth is that what has worked Engine Marketing or SEM) as well. less than 24 years old and 50% of
in the US will work in India. Many startups take the paid route to the users have an income below 2
We discovered that none of begin with as it is easy and the cost lakhs per annum (Vizisense). So, this
the strategies that our per click for search engines is very medium might not be suitable for
respondents used worked the low. Though search engines route a selling financial products. “Social
same way. There is no strategy lot of traffic to websites, there is a Media Optimization is inexpensive
mix that fits all. While some catch as explained by Shiva Kumar, and builds loyal customers. However,
strategies are generic and can VP Products & Technology of Flip- the volumes have been far from im-
be used by all with little kart.com. “Getting traffic is impor- pressive so far” opines Akhil Chug of
tweaking, others have to be tant but what‟s more important is StudyPlaces.com.
tailored and customized to suit getting the right customers to your Social Bookmarking is a method for
the product and the
site, otherwise these noise users eat Internet users to store, organize,
consumers. We talked to 10
up your bandwidth” says he. With search, and manage bookmarks of
Indian startup e-businesses
close to 90% of traffic coming from web pages on the Internet.
that are making news lately
and gathered their opinions on
effective promotion strategies. Website Business First Second
In this article we explore what Redbus.in Bus-Ticketing SEO Offline
promotion strategies have Inkfruit Designer Offline SEO
worked for these companies T-Shirts
and how they managed to use BankBazaar Loan Comparison SEO SMO
them effectively. StudyPlaces Education Consult- SEM Email
Careers-India Job Info SEO SMO
FlipKart Bookstore SEO SMO
Habits.in Lounge Viral SEO
& Lifestyle
Home-Designing Interior Designing SEO SMO
ISchnell Education Software Offline SEO
EasySquareFeet Real Estate SEO Online Commu-
nity Based
Table 1: Ten E-businesses choose the strategies of their choice



With over 100 million unique URLs book- that some websites run through email data-
marked and 3 million registered users, sites bases available.
like Delicious are routing substantial number
Rediff.com chose television over inter-
net to advertise its repositioning strategy.
While the wisdom behind ignoring the offline
marketing is debatable; offline advertising is
indispensable for many sites. “Many low cost
untraditional options are now available for
offline marketing. Credit card bills, electricity
bills, bus tickets are being used to reach the
customer. It is important to define your target
customers and target only those who match
your target spending and age levels” says
Prashanth, Ogilvy. Redbus.in struck a win-
win deal when it started advertising on credit
card bills. Advertising space is also available
on buses, auto rickshaws, subway stations
etc. For a company like Inkfruit, which gets
most of its revenues through offline sales, ad-
vertising offline is extremely important. 45% of
traffic to Inkfruit is direct (users type the URL
of the website) and majority of this is contrib-
uted by offline marketing. The offline options
include promoting in malls or shopping com-
plexes where Inkfruit products are sold. If the
Figure 1: Contest of Inkfruit featured in a blog (Jain) segmentation is geographical in nature one
can take advantage of the Direct Post facility
of users to different websites. However, the of India Post that allows businesses to send
traffic from these sites to the Indian websites mails to a certain pin code location at Rs 1.50
is negligible. Manu Avinash of Careers-
India.com says “The social bookmarking sites
have huge potential and of late we are getting
some traffic from these sites”.

Amusingly, what used to be the bread and

butter of an internet marketer a few years ago
comes number three on our list. Email has to
be used very cautiously. Opt-in lists (users
who have accepted to receive promotional
mails) can be either created by self or in the
initial days bought from an agency. “More
than two emails per month may be consid-
ered as spam by users”, warns Akhil Chug. It
is important to communicate constantly with
the customer and at the same time not be
considered as a spammer. Apart from fre-
quency, the timing of emails is extremely im-
portant. Mayank, Marketing Head of RedBus, Figure 2 Redbus.in advertised at the back of an auto
says, “Sending a mail about holiday ticket (information madness)
reservation two days before the holidays be-
gin is useless but sending it two weeks before per article.
will bring in good traffic with very high con- Public Relations (PR) is a part of offline mar-
version rate”. Depending on the type of the keting strategy and is a combined responsibil-
product affiliates‟ databases (like Zapak, ity of the company and the PR agency se-
Cricketnext etc) can be used to send relevant lected. According to Kashyap, Cofounder of
emails to their user base like what Inkfruit is Inkfruit.com, “If your product is innovative
currently doing. The click rate or open rate of and can create interest for the reader, creating
mails sent through such tie-ups are at least a positive PR is not difficult”.
10 times better than random mail campaigns



The extent that the media covers you also of importance” says Noel Manoj of BankBa-
depends on who you have for backing. zaar.
“Selecting the right seed fund to promote
and finance your company is a vital task. While all the strategies discussed so far are
Right people can get you good PR and give facilitators for directing the customer to the
you invaluable mentorship. That‟s what site, at the heart of the acquisition process
TiE (The Indus Entrepreneurs) did for Red- is the product. Conversion of a casual visit
Bus” according to Prashanth from Ogilvy. to a desired action (sale, registration,
Sasikanth Chemalamudi, founder of Hab- spending quality time etc) happens only if
its.in says “Having a very strong and close the product that you offer is likeable and
knit alumni network (of his Alma matter creates value to the customer. Customer
BITS Pilani) has helped Habits to increase loyalty on the other hand depends largely
its awareness”. Technology intensive B2C on the service component. Nothing drives
or B2B products require lot of offline mar- your customer off to the competitors like
keting in India, whereas in the US, the us- bad service does. Bad service coupled with
ers being aware of such products, online good advertising may help build the cate-
marketing works effectively. For example, gory and help the competitor prosper at
ISchnell is using only offline marketing to your advertising expense.
sell its product in India but for US & China
they are relying on online marketing.
Pradeep P N is a 2nd year student of IIM Lucknow, spe-
cializing in Marketing and Finance. He holds a Bachelors
Mobile marketing, which is in a nascent degree in Computer Science from BITS Pilani. Prior to joining
stage now, can drive the future of advertis- IIM Lucknow he has worked with Juniper Networks India for
ing. BSNL has already started wooing cus- around two years. He can be reached at pradeeppn@iiml.ac.in
tomers to opt in for promotional messages
on their mobile in return for free call time.
With the advent of Blyk, the UK based Sarat Chand is a 2nd year student of IIM Lucknow, spe-
company which has pioneered the model, cializing in Marketing and Finance. He holds a Bachelors
in India it only means more advertising degree in Computer Science & Engineering from Osmania
over the phone. “Mobile is a major channel University. Prior to joining IIM Lucknow he has worked with
in India as more users go online on a mo- Cognizant Technology Solutions & Satyam Computer Services
bile than a computer for the first time. Ltd. for around six years. He can be reached at
Hence mobile applications will add of a lot pgp24058@iiml.ac.in

Identify the Ad!!

Identify the occasion??

Check Page 47 for answers



State Of The Market- A Comparative Study

Media mogul, Rupert Murdoch was Navachetna Microfin Services Ltd re-
perhaps paying tribute to God‟s Own ceived Rs 1.5 crore from a few high
Country when he trooped into the net worth individuals and IT profes-
state capital to finalise the takeover sionals. A day later, Tiruchirappalli-
of Matrubhoomi, a local Malayali based Grama Vidiyal Micro Finance
daily. More noteworthy was the fact Ltd (GVMFL) said it raised Rs 20.4
that this was the first time the bil- crore from MicroVest, Unitus Equity
lionaire had made a foray into re- Fund and venture capitalist Vinod
gional daily. Something has Khosla. This is the second round for
changed, something had metamor- Grama, which had raised Rs 14.7
phosed – Brand India from the shy crore in 2008. These are not isolated
nonchalance of the 50s to the street- events which can be ignored. State
smart self-advertiser of the new mil- Branding has well and truly arrived
lennium the journey has well and and the investor today has been daz-
truly come a full circle. The various zled with fresher and innovative mar-
states of the country have ramped keting blitz from the various states.
up their efforts to position them- Gone are the days when 26 January
selves as brands, as a full scale war used to be the only day for displaying
culminates to catch the eye of inves- the resplendent riches of a region.
tors foreign and home grown.
Even states like West Bengal, which
In this paper, the There still remain a multitude of
author attempts to views on when India opened its
identify the doors to Foreign Investors but there
characteristics of the is little to argue that it was at the
business climate in turn of the millennium in 2001 that
India that can help branding of states well and truly
explain the different emerged. It would have been un-
performance of
thinkable some 15 years ago that 14
individual states in
terms of investment of the states of India now have brand
and growth. The paper ambassadors!
summarises the efforts
made by the various THRISSUR- MAKING A MARK
states in attracting has been traditionally averse to big
investment. The author An idea still exists that the race to ticket investment, have joined the fast
explores the sell themselves remain restricted to lane to woo investors. Appointing
investment climate in the proverbial industrial Shangri la cricket star and hometown hero Sau-
several typologies of belt of Gujarat, Maharashtra and a rav Ganguly as a brand ambassador
Indian states and few others like Karnataka and the
identify the key to the state was just one of the many
national Capital Region. The arrow steps taken to attract the eye of the
features of the various
could not be more off the mark as investors. Jyoti Basu the former chief
parameters that
influence investors in even erstwhile obscure towns are minister of the state converted to
India. The analysis rising to prominence in the mind- capitalism late on an investment pro-
shows that the states map of potential investors riding motion trip around Europe and Amer-
have significantly piggy back on a dazzling marketing ica, flying on Concorde, staying at
ramped up the campaign. Thrissur in Kerala, Ti- New York's Waldorf Astoria hotel and
marketing initiatives to ruchirappalli in Tamil Nadu and dining with inveterate capitalists at
attract investment. Haveri in Karnataka are unlikely such firms as Price Waterhouse, Rolls
towns investors will be herded into. - Royce and Merrill Lynch.
But they recently entered India's
venture capital map, thanks to the Mr Basu was just one of a flock of In-
impressive and aggressive campaign- dian state chiefs who were realizing
ing of these states. On June 22, the need of the hour and stepping up
Thrissur-based ESAF Microfinance to be feted as representatives of their
and Investments (EMFIL) said it country's open-door policy on foreign
landed Rs 12 crore from Dia Vikas investment. In dark clouds of eco-
Capital, an arm of Opportunity In- nomic slowdown, silver lining emerged
ternational Australia, while Haveri's for Rajasthan as the western desert
state attracted highest investment



plans during October-December 2008-09 by ance, Disaster Management, Best-in-class infra-

corporate India, bringing a considerable shift in structure, Energy Output, Reducing Maternal &
its ranking order, among the 21 India states Ra- Infant mortality rate. “You are stupid if you are
jasthan is turning to be one of the most favour- not investing in Gujarat”, says Ratan Tata. Modi
able investment destinations, carving top posi- was voted the best CM in the country for three
tion in the third quarter of the financial year consecutive years by India Today ORG-MARG
2008-09 (October December), witnessing a major Survey. Gujarat has also been voted Best State by
jump from 13th position in the same period of Rajiv Gandhi Foundation. 100+ billion US Dollars
the financial year 2007-08, according to a paper MOU‟s signed in 2007 Vibrant Gujarat Investors
brought out by ASSOCHAM. Summit.

As India Inc expressed investment plans in Ra- These are not mere facts but simply highlight the
jasthan, the state registered a major jump by advantage and competitive edge Gujarat had over
245.84 per cent during October-December 2008- its rivals being a “first mover”. The idea has lived
09 as compared to the corresponding period of since Gujarat with all states ready to shell out
the last year (2007-08). The next big investment millions even at times of global economic slow-
destinations also witnessed major shift as sec- down to gain a facelift which would showcase
ond place was occupied by Madhya Pradesh as themselves to the world. Adman Prahlad Kakkar
compared to the sixth place last year. Orissa acknowledges the fact as he underlines the fact
maintained its place at the top slot carving third that quite a few advertising agencies and Brand
position. The secret of the success was not to be management companies have been making big
found in JK Rowling‟s quiver but in simple mar- bucks owing to this “branding-boom” in India.
keting logic, innovation is the key to survival.
“Branding of states and nurturing and positioning
Brand positioning has been important as every of the brands is here to stay and is more than a
state has hired the best corporate houses to sell passing fad,” says business baron Vijay Mallya
their state to the world as an investor‟s dream. who himself has been an active player in the re-
The state of Gujarat was perhaps the first to hit branding of Karnataka as a state which was more
the ground running as they launched than India‟s silicon valley.
www.supportgujarat .com a website featuring a The stage has been set, the world is now watching
plethora of advertisements and support data ………………………. And the states of India are
highlighting the advantages of investing in Guja- ready to stand up and be “AD”ed
Sanglap Banerjee is a first year PGDM student in IIM Calcutta,he
Over 60 Accolades and Awards for Gujarat under holds a Btech degree in Electronics and Communication Engineering from
Narender Modi from International and National National Institute of Technology Bhopal, and can be reached at
Organizations for Best Investment Environment sanglapb2011@email.iimcal.ac.in
to Best Sanitation, for Innovations in Govern-
Mega Investment Proposed ( Source: IPICOL, Government of Orissa )
Proposed Pro-
Company Location Cost(Rs Million)
Consolidated Electric Power Power Jharsuguda 160000
Larsen & Toubro Ltd Steel Gopalpur 70000
TATA Steel Steel Gopalpur 65000
Ganapati Exports Ltd Steel Duburi 60000
Hindalco Industries Ltd Aluminium Kalahandi 50000
Indian Oil Company Oil Refinery Paradeep 50000
Nippon Oil Company Oil Refinery Paradeep 50000
MESCO Steel Duburi 42690
Oswal Agro Ltd Fertilizer Paradeep 42200
Utkal Alumina Aluminium Rayagada 30000
Ashok Leyland Oil Refinery Haridaspur 24000
Consolidated Electric Power Power Ib Valley 20750
Neeleachal IspatNigam Limited Steel Duburi 15250
Indian Seamless And Alloys Limited Steel Duburi 13770
Orind Steels Ltd Cold Rolled Steel Duburi 11500



Does Green Marketing Sell?

When Philips came up with CFL mental impact of products they buy.
(Compact Fluorescent Lights) Of these 50% of the respondents are
“Marathon” in 2000, the product was willing to pay premium for eco-
immediately a hit even though it was friendly goods. Organizations in de-
charged at a price of $20 against veloped countries have widely
$0.75 for regular incandescent adopted Green Marketing practices,
bulbs. While many media reports while consumer trends show that
accredited the eco-friendliness of this developing nations such as India and
product (“Green Marketing”) as the Brazil are not far behind. A study by
reason behind its success, we believe Jain and Kaur (2004) has shown
that the benefits offered by the prod- that though consumers are not fully
uct in terms of saving power in the aware of environmental issues, they
long run, capability of lasting for 5 are willing to prefer and pay more for
Dwindling natural resources years and the trust in the brand products that are certified to be envi-
and global warming have Phillips were the reasons for its suc- ronmentally friendly. So how have
led many companies to cess. The article attempts to explain organizations exploited this wave of
innovate products that are consumer‟s behavior in terms of pref- environmental concern amongst con-
eco-friendly. Marketers erence and willingness to pay more sumers?
have mixed results about for green products.
the success of such green
products. We referred to Going Green
several books, online
Often green strategies are de-
articles and research papers
signed not only for environmental
to understand the mistakes
made by marketers and to benefits but also for the benefit of
understand the consumer’s the organization. We believe that
attitude towards green strategies which benefit the environ-
products. We concluded ment as well as the organization may
that eco-friendliness has in fact help the cause, since they
varying influence on the would be more sustainable when
consumer’s preference for compared to pure philanthropic ini-
green products. While eco- tiatives, otherwise termed as Corpo-
friendliness can influence
rate Social Responsibility (CSR). The
consumer’s purchase
benefits of environmentally friendly
decision for a low
During our research, we strategies for the organization can be
involvement product, it
won’t be sufficient to found that consumers behave differ- broadly classified as:
persuade consumer to buy a ently for the products that require
different levels of involvement. Before  Increasing profitability by com-
high involvement product. manding a higher price for envi-
Understanding consumer we explain this further, we must in-
troduce the term “Green Marketing”. ronmentally friendly products
behavior towards different
categories of green products American Marketing Association de-  Differentiating products based on
can help marketers innovate fines Green Marketing as the mar- environmentally-friendly attrib-
the right products and keting of products that are presumed utes
develop effective to be environmentally safe. Green
communication strategies. Marketing incorporates a broad  Increasing market share by de-
range of activities including product veloping preference for environ-
modification, changes to the produc- ment friendly products through
tion process, packaging changes as advertising
well as modifying advertising. Other  Building corporate brand image
terms for green marketing are eco- by associating with environment
logical marketing and environmental friendly practices and products
Marketers have had mixed results
while implementing eco-friendly
Studies in the US (Cramer, strategies. While there have been
1991) show that over 90% Americans huge successes such as the Toyota
are concerned about the environ- Prius and Philps CFL, there have
also been innumerable failures that



have disappeared into the oblivion. tural and personality variables. The most use-
ful classification in the Indian context was
found to be based on three parameters: con-
Green Marketing Myopia cern for the environment, awareness of envi-
ronmental issues and environmentally-
Many marketers get obsessed to de-
friendly behavior (Jain and Kaur, 2004). The
velop number of product features rather than
key findings of this study show that though
meeting customer needs, the condition
Indians lack sufficient knowledge about envi-
termed as “Marketing Myopia” by Theodere
ronmental issues, there is a generally high
Levitt(1960). Jacquelyn and Edwin(2006)
concern for the environment and most sur-
build on this further to explain “Green Mar-
prisingly, Indian consumers score very high
keting Myopia”. They suggest that Green Mar-
on environmentally friendly behavior, espe-
keting must focus on two objectives: improved
cially with respect to conservation of re-
environmental quality and customer satisfac-
sources (saving water, oil, etc.) and purchase
tion. Misjudging or overemphasizing one at
decisions (buying greener products).
the cost of the other can lead to Green Mar-
keting Myopia. Such myopia can occur when
products fail to provide credible environ-
The most important benefit that indi-
mental benefits. Introduced in 1989, pack-
viduals seek from environmentally responsi-
ages for Mobil's Hefty photodegradable trash
ble behavior is the desire to act in an environ-
bags prominently displayed the term
mentally responsible manner. The attitudes
"degradable" with the explanation that a spe-
that drive this need, resulting in purchase
cial ingredient promoted its decomposition
behavior can be broadly classified as cognitive
into harmless particles in landfills "activated
and emotional. “Environmental conscious-
by exposure to the elements" such as sun and
ness” corresponds to the cognitive dimension
rain. Because most garbage is buried in land-
of environmental attitudes, and
fills, allowing limited exposure to the ele-
“Environmental Concern” refers to the emo-
ments, the claim enraged environmentalists.
tional dispositions as individual indignation
Ultimately, seven state attorneys general sued
about the destruction of nature (Hartmann
Mobil on charges of deceptive advertising and
and Ibanez, 2006). Based on these needs and
consumer fraud, and the company withdrew
segmentation, we analyze how green market-
the product from the market.
ing can be effectively used to influence the
purchase behavior of consumers for different
types of products.
To help marketers maximize the effec-
tiveness of green marketing strategies, we ex-
plain below how consumer behavior theories
Products (and services) can be broadly
can be utilized.
classified as high and low involvement for
Understanding the Consumer Behavior of analyzing the consumer purchase behavior.
Green Marketing Since the purchase behavior is totally differ-
ent for these two types of products, the impli-
Though there are a lot of esoteric mod-
cations of green marketing can be different for
els explaining why or why not does green
these two types of products, which we bring
marketing work for different products and
out in the following sections.
consumers, we found that basic consumer
behavior theories can be easily applied to ex-
plain the effectiveness of green marketing in
High Involvement Products
different scenarios.
Any product that is perceived as ex-
pensive, risky or has emotional value at-
Before getting into theory, a primary tached to it is considered as high involvement
question that arises is how do consumers product. The benefits sought from high in-
benefit from purchasing and using environ- volvement products such as TV, cars, etc. are
mentally-friendly products? Do all people very different from that of low involvement
have the same attitude towards the environ- products such as toothpaste, soap or paper
ment? napkins. While customers may purchase a
eco-friendly low involvement product for the
benefit of environment even if the price is
In the field of green marketing, differ- marginally higher, they will not purchase high
ent studies have classified consumers based involvement green product for it just being
on different demographic, psychographic, cul- eco-friendly. They will weigh attributes such



as performance, brand, convenience and price Low Involvement Products

against the competing products. If the con-
Low involvement products are charac-
sumer is required to make tradeoff on any of
terized as not being economically important,
these parameters for environmental benefits,
and involving low risk for the consumer. The
environmental product almost always loses.
purchase decision process for such products
Many products that require customers to
is thus relatively simple as compared to that
make such trade-offs have failed to establish
of high involvement products. In contrast with
themselves in the marketplace.
high involvement products, green marketers
can significantly influence the purchase be-
havior of consumers for low involvement
So now the question is, how to make
products through persuasive advertising of
green marketing startegies be perceived as
environmentally friendly claims regarding
high involvement startegies? – In two ways,
their brand.
first: it helps the companies make favorable
image and second it reduces the post pur-
chase dissonance.
For typical low involvement purchases
like paper and detergents, elaborate evalua-
tion of benefits of product and comparison
As per Fishbein‟s Multiattribute theory
with other products is usually not done. In
(Ajzen and Fishbein, 1980), consumer‟s atti-
the absence of marketing, such products are
tude towards a product is the function of con-
likely to become commodities, with little dif-
sumer‟s belief and the evaluation of the prod-
ferentiation between products. To prevent this
uct attributes. If a consumer has a preference
from happening, billions of ad dollars are
for certain attributes and if the product pro-
spent by FMCG companies like Unilever and
nounces those attributes then there is a high
P&G, so that they can increase the involve-
probability that consumer will purchase that
ment of consumers and create a brand prefer-
product. Thus, consumers having higher pref-
ence for their products. A study by US re-
erence for green products are more likely to
searchers (Schuhwerk and Lefkoff-Hagius,
purchase such products over others. How-
1995) has shown that advertisements with
ever, such customers are less than 2% in
environmental appeals have significantly
number and the mainstream customer won‟t
more impact on consumers who are less in-
buy just by that attribute. But if the product
volved in environmental issues (as in case of
is equal to competing product on all other pa-
India) when compared to advertisements with
rameters then consumer may prefer the green
traditional feature appeals (like financial
benefits). Once a brand preference is created,
it may turn into purchase habits and result in
brand loyalty for green products.
Secondly, high involvement products
have high probability of creating post pur-
chase dissonance. It could be because of it
In practice however, environmental
being expensive than other competing prod-
advertisements have often failed to enthuse
ucts or because it rates closely with other
customers. Again, researchers have dug out a
brands on performance parameters. In such
major cause for such failures to be the lack of
cases, consumers will look for balance in the
veracity of the environmental claims made in
psychological set by seeking supporting infor-
advertisements. Consumers are found to be
mation or by distorting contradictory informa-
extremely sensitive to the credibility of the
tion. As per cognitive dissonance theory,
claims made by green marketers, and can
when a brand does not meet expectations or
quickly get suspicious about vague or am-
when a competing brand is found to offer
biguous statements. Though governments
more benefits, the consumers will discount
have laid out strict laws to prevent marketers
the negative information and rationalize their
from making false claims, brands have to en-
behavior/purchase. The product rated higher
sure that their claims are substantiated and
on eco-friendliness can thus help consumer
phrased clearly to prevent the loss of credibil-
reduce post purchase dissonance when the
product is found to have defects or is weaker
than competing brands on certain parame- Conclusion
Based on secondary research, we have
found that marketers have to adapt their

green marketing strategies depending on the

nature of the product. For high involvement
Ankit Thakkar is a 2nd year PGP student with marketing
products, environmentally friendly attributes specialization at IIM Lucknow. He holds Bachelor‟s Degree in
may not be sufficient to persuade customers Mathematics from St. Xavier‟s College Gujarat and Post Graduate
to prefer the product or pay a premium for it. Degree in Information Technology from SP Jain, Mumbai. He can
Such products must match or provide addi- be reached at ankit.thakkar@gmail.com.
tional value when compared with other prod-
ucts on various parameters such as perform-
ance, brand, convenience and price. In con- Nishant V Patel is a 2nd year PGP student with marketing
trast, green marketing can offer benefits for specialization at IIM Lucknow. He holds Bachelor‟s Degree in
low involvement products. Claims of environ- Telecommunications Engineering from Bangalore. He can be reached
mental friendliness of products, if clearly ad- at nishant1@gmail.com.
vertised, can cause a shift in consumer pref-

Answers to quiz on Page 41

Top Left: Taare Zameen Par
Top Right: United Colors of Benetton
Bottom Left: PETA
Bottom Right: Fevicol

Men’s Cosmetics

and Nivea shaving cream. That

Nivea shaving cream was my first
„Look at that nest! Seems like she personal cosmetic tube.
has never used a shampoo in her (Reproducing Chapter 5 of my
life‟. autobiography?) Today, I have a
„Umm…even I haven‟t‟ dedicated table in my hostel room
for cosmetics. I pretty much have a
„What???‟ full range – right from Himalaya‟s
Thus went a conversation way back Neem Face Wash to Lakme‟s sun
in 1999 with a female friend of mine. protection lotion. I have migrated
I had, till then, never ever used from water to Head & Shoulders
shampoo. Not even Wipro Shikakai shampoo with cool menthol and I
(where did that gem of an idea disap- use a Garnier Fructis cream condi-
pear? I wonder). I guess I had a con- tioner afterwards. It‟s no secret that
stant layer of grime on my hair and many men today spend almost as
any excess was washed away by wa- much as women on cosmetics. And
ter. Over time, like a bored married it‟s not because we are suddenly
couple, everyone seemed ok with getting in touch with our feminine
this arrangement. The grime actually side, but we just want to look good
provided volume to my hair, I discov- and smell good. And if any woman
ered this later in the era of the or man wants to taunt our breed, I
shampoo. Back in those days, my request that person to take a ride
idea – well, not mine, my mother‟s in a crowded Mumbai suburban
actually- of moisturizer was sarson train in the summer at peak time.
ka tel (most probably Dhara or Post- It is our deodorated and eau-de-
man). In winters, I had to, under the toiletted arm pits your noses will
strict commands of mommy dearest; search out amongst all the bacteria
apply mustard oil all over before tak- laden smelly arm pits which would
ing a bath. It was a matter of little surround you.
concern that my vests soon turned
yellow and I went to school vaguely
smelling of the same blasted oil. I But do men relate to cosmetics in
had just started shaving secretly us- the same way as women do? Indus-
ing Dad‟s Philishave – or so I try insiders don‟t think so. Accord-
thought. It didn‟t occur to me that ing to Noella Gabriel, director of
my parents had observed the ab- product and treatment develop-
sence of my facial fur. Soon after, ment at the Elemis spa, “Men are a
Dad bought me my first razor, brush hard market, but once you've got



them through the door, they are very loyal. has taken place in the market. HUL‟s Fair &
Far more loyal than women.” So much for Lovely, launched in 1975 and initially tar-
men being unfaithful. Though the Fair & geted at women, also came up with Fair &
Handsome ad evoked more than its fair share Lovely Menz Activ. And why not? The Indian
of snide remarks and jokes, it seems that male grooming segment is valued at Rs 750
Emami had done their homework. A study crore and growing at a pace of 20%, faster
conducted by Emami Industries in the early than the global cosmetics market which is
2000s showed that 29% of the users of fair- hopping along at 18%. Shahrukh sure knew
ness creams were men! I wonder how those what he was getting into when..well..when he
29% men managed to buy Fair & Lovely. got into that bath tub in the Lux ad.
Probably they took as much courage as buy-
ing that, than any other only-for-men latex
products. Companies nowadays have gone Men have come of age. And know which
beyond mere re-branding of their products. As creams to buy to beat it as well. We might
it turns out, we have different skin than stand confused in the cosmetics segment of
women. Hence, new products exclusively for malls trying to decide which cream to buy.
men are hitting the shelves. But the fact that we are standing there, ac-
tively deciding for ourselves and not pretend-
ing that the moisturizer is for our better
In fact, biggies like Nivea, L‟Oreal and Dabur halves is a sign of the changing times. But
are all expanding their businesses in the why did we decide to take all that pain in the
men‟s cosmetics segment. Nivea is focusing first place? Well, I believe Garnier said it best
on its „Nivea for men‟ and L‟Oreal has the – „Because I am worth it.‟
„Powerlight‟ range of cosmetics to pamper
Ayan Ghosh is a 2nd year student at IIM Lucknow. He holds a
Bachelors Degree from National Institute of Technology, Surat and
The fact that L‟Oreal used John Abraham, can be reached at pgp24125@iiml.ac.in
who no one in their right mind would term
feminine, shows the transformation which