MARKATHON

OCTOBER 09
MARKETING MAGAZINE OF IIM SHILLONG

COVER STORY

VALUE ADDED SERVICES

VOL I, ISSUE 6
FROM THE EDITOR
Our new issue has identified couple of such brand
concepts which are going to define the marketing world
vigorously. It begins with the wide use of In-film
placement as a tried and tested format of advertising to
Dear Readers, reach the prospective consumer base more accurately
than any other media. A new flavor in the form of ‘swarm
Marketing theories undergo rapid modifications thanks
theory’ is added to the concept of viral marketing, while
to the era of cosmetisation of texts and beliefs. My
brand enhancement through disparate association of
recent encounter with two such buzz-theories left me
brands makes a good read. The cover story by marketing
baffled and led to a prolonged research, the findings of
consultant, Jigyasa L Dhir revolves around the rapid use of
which I am summarizing in this editorial. The first one is
value added services as the augmented value tool, to
called ‘Marmite Effect’, which says, “It’s better to be a
elicit Indian consumers as well as boost the ROI of
polarising brand that people love or hate than to be
marketing.
ignored”. Drawing the same concept into the human
psychology, Oscar Wildly once said, “There is only one I hope the issue will definitely arouse, elevate and keep
thing in the world worse than being you engrossed in the world of marketing. Looking forward
talked about, and that is not being to your comments and wishes to bring out more
talked about.”Marmite effect is a stimulating issues in the future.
really wonderful tool to gauge the
consumer’s psyche about your Asit Kumar Jain
brand; what do they loath about it,
are they deeply influenced by it or
do they leave it in disdain? It is really
important to gauge the brand
Our Aug-Sep 09 effectiveness because the basic
Cover
premise of creating a brand is to
elicit response from the whole generation of consumers. THE MARKATHON TEAM
The response may be on the right side or the wrong side,
which is immaterial. A recently conducted study further EDITOR
reiterates the theory that brands that have been most Asit Kumar Jain
talked about, be it loved or hated, are highly successful as
compared to brands that people just ignore. Moreover,
most successful brands have an almost similar size of
SUB EDITORS
adorers and defectors but a huge chunk of them buy their Dilpreet Singh Gandhi
products proving the fact that the Marmite Effect holds Parul Gupta
true. The second theory is about transformed ‘Gen-Y’ in
Pranab Talukdar
the era of Web 2.0 and talks about, what it requires for
marketers to keep pace with the generation of tweeting, Ritul Singh
texting and social networking obsessed youth to increase Saurav Kumar Bagchi
their visibility and understanding in their wired world. The
need for adopting a differential approach can be
CREATIVE DESIGNERS
measured from the sheer size of this consumer base as
well as their purchasing potential; their demands from Soumyasanta Roy
brands are - to become more transparent and provide Keshav Sahani
more value for their limited investment. I strongly
advocate brands to learn the right way to approach this
highly interconnected generation to become part of the
wallpaper of these ‘CyberGens’ modern life; failing which
they will be dropped into the trash bin in an instant.

2
 Markathon | Oct 2009

CONTENTS

PERSPECTIVE I
Film brand placement 4
SHAKSHI GUPTA | IIM S

PERSPECTIVE II
Association in disparate brands 7
A V RAGHU VAMSHI, K RAGHUNANDAN | IMT GHAZIABAD

EYE TO EYE
Recession marks the end of ethical marketing 9
SARA TOWER | UNIV. OF GETTYSBURG, DEBANJANA SINHA|IIM S

COVER STORY
Value Added Services
JIGYASA LAROIYA DHIR | MARKETING CONSULTANT
10
PANDORA’S BOX
Link Between Population Dynamics And Viral Marketing 16

markathon
ARPAN GHOSH | IIM S

18
BRAND STRATEGY
Growth of Mass Market & Impact on Cosmetic Industry
TRIDIB BANERJEE | NMIMS UNIVERSITY, MUMBAI

COMPETITION
Silent Voice
CADBURY BOURNVILLE: FINE DARK CHOCOLATE
20
UPDATES
VARSHIK N | IIM SHILLONG
22

COVER ART: ANDREAS LEONIDOU 3

 Perspective
Film brand placement
Shakshi gupta | IIM shillong
Introduction
The concept of placing brand in a movie is not new to
marketers for the advertisement of the product. This
association is very old and in Bollywood, it started with
the presence of a Rajdoot motorcycle in the film Bobby.
In English movies it dates back to early ‘50s when
Gordon's Gin paid to have Katharine Hepburn's
character in "The African Queen" to use toss loads of
their product overboard. Though, then it was only a blink
and gone appearance, but now it has become one of the
important channels for the brand communication.
Brand communication is a key component in branding as
it determines how successfully brand is established and
turns profits. Advertisements and public relations have
been conventional and most popular means of brand
communication, but with evolving customer dominated
business environment they seem to be losing their
effectiveness. Thus comes in new form of brand
communication: In film placement that works seamlessly
with other form of communication methods to achieve
success.
Brand placement is practice of including a brand name,
product, sign or trademark merchandise within a movie
to increase the brand recall or for instant recognition at
the point of purchase. It can be implicit or explicit in
movie depending on marketers’ requirements and scene
in which it is placed. It can be used to launch a new
product (Swift Car in Bunty and Babli), demonstrate a
long tradition of a brand (Indian Post) or to reinforce the
brand image or its positioning in market (Allen Solly in
Corporate). It can also be used to showcase the
product’s superiority over the competitor (BMW over
Mercedes Benz in Tomorrow Never Dies).
Reasons for Success
Advertisements have been the most popular of all the
means of brand communication. With increasingly
competitive market, people have been surrounded with
an excess of advertisement messages, be it while
watching TV, struck in a traffic jam or even while
travelling by airlines or metro. This has resulted in
Markathon | Oct 2009
reduction in their effectiveness. With increasing number
of advertisements day by day it is getting extremely
difficult for the companies to create a differentiation in
their advertisements, impacting the brand recall in a
negative manner.
This can be supported by the facts that there has been a
significant increase of 18% in off screen advertisements.
With conventional advertisements being intrusive, they
lose the attention of the audience against the
expectation of the marketers. At some point, the
customers get tired with them and even annoyed. Thus,
there is a need to have a form of communication that is
not obtrusive and has high brand recall.
Second reason that the effectiveness of the
advertisements is wearing is the use of technology that
allows the customer to skip the advertisements while
watching TV. It is a common practice to switch over the
channel or mute the television when advertisements
crop up during a program or a cricket match. In a study
conducted by a Media Planning Group indicate that 90%
of people with DVRs skip commercials in recorded
programming—and just 16% watch the ads when
viewing live TV, rather than doing something else or
channel hopping.
The 2007 advertisement spending outlook released by
the Centre for Media Research indicates that there will
be a slight decrease in advertising spending share for
conventional media including TV, newspapers and radio.
Also there has been a trend for increase in shares of
cinema and internet. The figure below depicts the
findings.
Advantages of In Film Brand Placement
As compared to conventional 30 second advertisements,
in film placements are less intrusive as they are part of a
storyline and integrated with the film. It becomes a
realistic stage where the marketers get a chance to show
the brand value in the plot of the story itself. This tends
to be more acceptable to the customers unless it is
highly out of place.
4
 Perspective
The association of brand and movie celebrities is very
old. The effectiveness of communication increases when
celebrity endorses a product, as people have tendency
to imitate those whom they adore. With help of in film
placements, the brand gets to be associated with the
movie stars. This is minus the huge endorsement fee
that the company pays to a celebrity to be its
ambassador. Example can be of Tata Indicom which
willingly gave Rs. 2 Crore to be associated with
Rajnikanth blockbuster, Chandramukhi. Had it roped in
Rajnikanth to be its ambassador, it definitely would have
paid a lot more.
The cost of in film placement is two to three times
cheaper than the normal advertisement. It can cost
anywhere between Rs 5 Lakh and Rs 50 Lakh, depending
upon the level and length of integration of the brand in
the movie, production banner and actor endorsement.
Thus, marketers are now trying to weave brand
personalities more tightly with the brand themes.
The in film placements is a better way for the advertisers
to showcase the core value of brand. The usage and the
attributes of the product are shown in a more effective
way as there are integrated in the storyline itself.
Advertisers take advantage of the storyline and the
characters in the film to demonstrate what brand stands
for. Be it Castrol in Chalte Chalte or Motorola in Delhi 6,
Louis Vuitton in Sex and the City or Omega Watches in
James Bond movies.
Another advantage is that in theatre audience are glued
to their seats and thus, cannot switch over the channel.
Also as these are not obtrusive, higher brand recall can
be expected. Marketers get a chance to specifically
target the market. Each film caters to different audience
and if marketers place their brands keeping this in mind,
the brand can enjoy a higher ROI.
A movie caters to a far wider audience than the
traditional advertisements. A movie is not only played in
theatres but is also broadcasted on TV a number of
times in future. A movie can be watched in-flight; it can
be watched on a VCD or DVD. Before movie is released,
the brand gets placed in the promos of movie. The
advertisers show the part reels of the movie instead of
normal advertising campaigns. Goodyear in Tara Rum
Pum Pum can be good example, where it showed the
film promos as part of its normal advertisements.
Markathon | Oct 2009
Such show reels fall under the entertainment ad
category as opposed to the 'commercial' category that
traditional ads fall into. Thus, marketers eventually end
up paying four to five times less to promote their brand.
They are beginning to leverage on films through
marketing tie-ups. Thus, it provides multiple windows
and becomes a good medium to place a brand on.
Apart from giving advantages to advertisers, it reaps
benefits for producers as well. It helps them recover
their film budget to a certain extent. For example
Madhur Bhandarkar’s Fashion recovered approximately
40% of its budget within film advertising. It had likes of
Kimaya, Cellucom, Sunsilk, Lenovo, Reebok and LG
among others. Thus the producers are also roping in
multiple brands to advertise in their films. Sex and the
City had more than 90 placements integrated in the
movie (Louis Vuitton, Manolo Blahnik, Guess etc).
Considerations to Successful In Film Brand
Placement
Though in film placements are gathering interest from
both advertisers and producers alike, it is also important
that the product meshes well with script and plot of the
film. If this aspect is not taken care of and the product
does not have any connection with the narrative, the
result can be catastrophic, that cannot be reversed. The
placement should seem to be natural to plot and not
contrived or forced. Example of wrong placement can be
of Coke in Yaadein; where Jackie Shroff would start
singing a song with Coke in his hand.
Brand should get its due diligence and should not be
used in a movie as a prop. The customers should be able
to identify with the brand. Omega watches in middle
class family would not have much impact and would lead
to dilution of brand. A good synergy is necessary
between brand and the movie. For example BMW in the
movie Tomorrow Never Dies acts as one of the James
Bond’s intelligent weapons to fight against the enemies.
The BMW brand's spirit, of appearing as driving-
oriented, powerful, and sophisticatedly equipped, is
thoroughly conveyed by the charm of James Bond and
the plot showing Bond defeating his enemy in an
ingenious way. It also portrayed the superiority of BMW
over its rival Mercedes Benz. Thus, a right balance needs
to be struck to be glamorous and yet get a value for
money proposition.
5
 Perspective
The success of an in film placement lies heavily on the
success of the film which is highly unpredictable itself.
Marketers need to pay attention to the high risk high
return factor in terms of cost and the impact. Attention
needs to be given to production house, star cast of the
movie and right fit for their brand personality. The
release date, approximate budget of the movie, the
professionalism involved in the film (to prevent change
of script at eleventh hour, delay in release etc) and the
possibilities of brand association through promotions are
some basic factors that need to be considered.
The time taken to complete a film, from the time to
brand getting incorporated in the script, to it being
featured in the film and the film being released gets
stretched to more than a year. With brands competing in
such a competitive environment, it is a possibility that
brands have changed their entire positioning. Thus, this
constraint is one that needs to be looked into.
Agencies need to do their part well when placing a
product in the film. It is the agency, responsible for the
placement to analyze the content of the film and its brief
storyline and then to decide upon its potential viewer
group or target audience, shortlist the brands that would
appeal to their target audience, and make a
comprehensive marketing plan for promotions during
the various stages of a film's release.
Hindi films are made on a few stereotyped storylines.
Therefore, associating brands in the right context into
the film becomes difficult. So till Hindi movies evolve,
there will be limited number of genres and the brands
will have to be centred around these genres only. The
producers still have not taken this form as advertising as
a revenue stream. As a result, embedded advertising still
has lot of growth prospects.
The Way forward
This association of films and brands are here to stay and
grow even stronger. This relationship can be a win-win
solution to both advertisers and film makers. The brands
across various categories from garments to cars to
jewellery to banks to news channels (Aaj Tak), are
approaching agencies specialized in doing this job of in
film placements, as it is a great way to connect with the
consumer and its environment.
Markathon | Oct 2009
Advertising agencies are culling out separate arms to
offer marketing solutions for the flicks. Leo
Entertainment, the entertainment marketing arm of Leo
Burnett, was the first to go that way. But its first-mover
advantage was short-lived as a rash of ad agencies
moved in shortly for the same killing. Lintas and
Rediffusion Y&R followed with Lintertainment and
Showdiff Worldwide respectively, Madison
Communications conjured up MATES, O&M launched
Ogilvy Live and Percept Group drew out P9 from its filmy
hat.
This shows the in-film placement craze among both
producers and advertising pros reaching a new
crescendo. But marketers need to give careful
consideration before fitting their prized brand into just
any movie. There's a thin line between 'classy blending
in' and 'unacceptable in-your face' kind of placements.
Getting the balance right is critical and seamless
integration is a very tight challenge. Though Hollywood
has perfected art of it, Bollywood still has a long way to
go.
Films are now becoming brands by themselves. When
big films are thought of as a brand, co-marketing,
merchandising, special edition products, whole new
opportunities come up. Marketers are seizing many of
these and are looking for more. It is after all about great
ideas and brilliant execution and they have new partners
in today's film-makers.
In summary, in film placement is playing an important
role in the current business of marketing communication
and is predicted to become even more valuable to
marketers. In today's customer-centric market place, the
basic rule of brand placement is to be plot-oriented and
integrated seamlessly into the content of the program.
Only then will brand placement be widely accepted and
distinguish itself from traditional marketing
communication approaches.
References
http://www.indiantelevision.com/headlines/y2k4/mar/mar151.htm
http://www.thehindubusinessline.com/2003/07/14/storsto/2003071
401660100.htm
http://www.financialexpress.com/news/infilm-placements-the-
emerging-ad-mantra/358010/2
http://www.brandchannel.com/papers_review.asp?sp_id=1
6
 Perspective
Association in disparate brands
A v raghu vamshi, k raghunandan | Imt ghaziabad
A Computer brand ties up with a prestigious Car brand. A
Mobile Phone brand ties up with another prestigious Car
brand. An Electronic equipment maker ties up with a
prestigious Bike brand.
Stymied? Mystified? Welcome to the world of
‘Association in Disparate Brands’. The recent news of
‘Toshiba’ releasing its ‘Satellite U500’ laptop with
‘Ducati’ endorsing it has once again taken the focus on
to the world of branding where one brand endorses
another brand which is unrelated.
‘Association in Disparate Brands’ is not a novel concept.
It has been there for a few years now. If one can
recollect the associations between ‘Acer’ and ‘Ferrari’ or
‘Asus’ and ‘Lamborghini’ or ‘Fly’ and ‘Hummer’, the
concept becomes more lucid. ‘Acer’ happened to be the
official IT supplier for ‘Ferrari’ across the world. So, it
saw an opportunity to increase the level of its products
and had released a unique notebook which was
endorsed by ‘Ferrari’ that targeted CXO’s and
multimedia enthusiasts. ‘Asus’ had followed suit by
associating itself with ‘Lamborghini’. A year ago,
‘Meridian Mobile’, a mobile phone brand had purchased
a merchandising license from ‘General Motors’ to use
the ‘Hummer’ brand on its ‘Fly’ range of mobile phones.
Some of these are once small companies and they have
grown big in the minds of consumers by associating
themselves with disparate brands.
So, why do brands need to associate themselves with
otherothers brands that are unrelated? What are the
benefits that a brand reaps by associating itself with
other brands? Are consumers ready to buy products just
because they are getting endorsed by brands with higher
level of brand equity?
People who are brand conscious are more likely to use
specifically those brands that satisfy their social and
esteem needs. For satisfying their social needs, people
might use brands to project themselves as someone who
is in coherence with the latest fashion trends and who
other people can identify with, and they satisfy their
esteem needs when other people perceive them as
Markathon | Oct 2009
someone who have high status. This is the cardinal
reason why high class brands present in the world over
survive and are able to command a price premium from
consumers. This is also the main principle behind the
strategy of ‘Association in Disparate Brands’. Companies
are trying to elevate the level of their products by
associating their brands with those brands that are
perceived to have high level of brand equity. This holds
true in the ‘Acer-Ferrari’ case. In the year 2004, ‘Acer’
was perceived as a company that was capable of
producing good quality laptops but lacked the lustre and
prestige of a truly high class international brand. ‘Acer’,
in a clever strategic move, elevated the class of its
laptops by associating them with one of the most
prestigious car brands. This step prompted another
company ‘Asus’ to follow suit by tying up with another
popular luxury automobile brand ‘Lamborghini’.
If a company attempts to leverage the brand equity of
another company which is unrelated or more
specifically, a product of another company which is
unrelated, by associating with it, then the company
needs to make sure that the core values of the brand to
which it is getting associated, matches with the product
that it is offering. The ‘Acer-Ferrari’ combination is a
case in point. What was unique about the laptop
launched by ‘Acer’ was that it was branded with the
‘Ferrari’ symbol and dressed in three layers of original
patented red ‘Ferrari’ paint. Even the start-up tone of
the laptop imitated the hum and accelerating of a
‘Ferrari’. ‘Acer’ has also gone in for a line extension by
releasing a slew of laptops under the name of ‘Acer
Ferrari’. Following suit, ‘Asus’ had gone ahead and tied
up with ‘Lamborghini’, which is again one of the most
popular automobile brands. It has released a notebook
under the brand name of VX and then it has also gone in
for a line extension by releasing a slew of laptops under
this brand. What is unique about these laptops is that
they are designed just the way the hood of ‘Lamborghini
Reventon’ looks and similar to what ‘Acer Ferrari’
offered, these laptops were branded with the
‘Lamborghini’ symbol. Each laptop of VX brand boasts of
high technology features, just like the ‘Lamborghini
Reventon’ has, that take computing to the next level.
7
 Perspective
Now what is common in both the cases of ‘Acer’ and
‘Asus’ is that the laptops offered the performance that
was expected from them and additionally had been
endorsed by brands with a high level of equity. The
laptops had transplanted the core value of design from
the automobile brands. Both the laptops were able to
charge premiums from the consumers and because of
the premium pricing, consumers considered them as
Luxury Goods. These had become Giffen Goods. For ‘Fly
Hummer’, it wasn’t the case. ‘Fly Hummer’ mobile
phones were launched in colours that were used on the
‘Hummer’ vehicles. The phone also had decent design
and construction and was loaded with ‘Hummer’
wallpapers and ring tones to give a complete experience
to the customer. But, the ‘Hummer’ brand is known for
its robustness and that core value was not transplanted
to the product. In addition to this, the phone’s Keypad,
User Interface and Music Player did not stand up to the
Markathon | Oct 2009
expectations of customers and the phone was also not
charging any premium. So, due to the distortion of
expectations that the customers held, the phone hasn’t
been able to cut ice with them.
This leads us to the fact that in ‘Association in Disparate
Brands’, each and every company which wants its
products endorsed by other unrelated brands of higher
equity make sure that the core values of brands, with
higher level of equity, are successfully transplanted to
the products being endorsed as they are attempting to
differentiate themselves based on other brands’ equity.
This is a kind of win-win situation for both the
companies as the brand with higher level of brand equity
will enhance its brand visibility and the brand with lower
level of brand equity will elevate its status in the minds
of consumers.
markathon
8
 Eye to Eye
Recession marks the end of ethical marketing
“You never stop, especially when
“These sluggish practices won’t help much”
things are going good. But what if
things are not good?” We are
presently facing the first recession
after the concepts of sustainability
and ethical corporate behavior
Sara Tower came into main stream. The blood
Univ. of Gettysburg of business is profit and when you
New York
are running short of blood you
just try to do everything to regain its level. Because of
recession, the corporate are now focusing on the base of
their business and there is a clear sign of green-wash.
In the period of recession, companies focus on reducing
cost and cutting down expenditure on everything that
not comes in their domain of core competency. Now-a-
days cutting down budgets on CSR while giving more
focus on marketing of products are very common. The
question here is how much difference does ethical
marketing make?
There are very less number of “true green” buyers and
organizations can’t sustain their business on these niche
customers. Sustainability is about balancing economic
and social as well as environmental aspect. If the price is
wrong, then it will not be sustainable, no matter how
green or useful it is. So price is very crucial and in times
of recession when people are not willing to spend, why
focus on these ethical and sustainable product
marketing strategies.
Normally ethical marketing practices are cuddly, twee
and/or semi-apologetic in nature but in the battlefield of
corporate where they face cut throat competition
relying on these sluggish practices won’t help much.
Companies need to have aggressive and practical look
towards the market to avoid the impact of recession.
Topic for the next issue’s Eye to Eye is – “Offline branding Vs Online branding : What makes marketing successful?”
Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 15th October.
Markathon | Oct 2009
Recession gives the
“Firms can set examples by ethically marketing”
opportunity to marketers to
introspect and innovate. In
practical situations all firms
face budget constraints during
such tough times of recession.
To counter all this, they may Debanjana Sinha
IIM Shillong
resort to scrupulous means to
to get the consumer’s attention. These may include
making false price comparisons, providing
misleading selling prices, omitting important
conditions of the sale, or making very low price
offers available only when other items are
purchased. Deceptive packaging in the forms of
mislabeled contents, size, weight etc can also be
employed. But the marketers must keep in mind that
long term survival requires innovative strategies. It is
commonly believed that marketing cost must be cut
during tough times to get a reasonable return on
marketing investment. Contrary to this, increased
advertising during a recession gives improved
market share, when competitors are cutting back.
Marketers should concentrate on core brands to
channelize the scarce resources. It gives the
opportunity to review the value proposition of a
brand. Recession can prove whether a brand can
provide value for money, even if it is relatively high
priced. Firms can set examples by ethically
marketing their brands by providing security to
consumers in terms of quality. Unethical marketing
practice can lead to the loss of the most valuable,
loyal and satisfied customers. Cost cut can be
achieved by the increased use of direct marketing,
using more of radio and print media over TV etc.
During recession marketers cannot ignore ethics
while promotion. This would ensure maintenance of
customer relationship and profitability when good
times return.
9
H AVE YOU TRIED VODAFONE HEALTH TIPS? OR

MAY BE THE AIRTEL VISA BILL PAY? DO YOU

REMEMBER, JUST 5 YEARS BACK YOUR MOM USED
TO MAKE A LIST OF THE HOUSEHOLD GROCERY FOR
YOU TO LEAVE IT TO THE KIRANA STORE AND THE
MERCHANT WILL DELIVER THE GOODS AT YOUR
DOORSTEP.

ALL THESE ARE EXAMPLES OF THE NOW SO

POPULAR VALUE ADDED SERVICES. WHY NOT?
VALUE ADDED SERVICES ARE RULING THE
MARKETING SCENE THROUGH CUSTOMER
SATISFACTION AND REVENUE FOR THE PROVIDERS.

VALUE ADDITION IS AN AGE OLD CONCEPT. IT EXISTS

RIGHT FROM THE TRADITIONAL MARKETING DAYS.
DURING THE ADVENT OF MARKETING, VALUE
ADDITION WAS OFFERED AT A NASCENT LEVEL,
MORE FOR RELATIONSHIP BUILDING & FOR
GOODWILL. THE CONCEPT WAS THERE, BUT IS BEEN
REJUVENATED BY OUR PRESENT DAY MARKETERS.

WHEN WE SAY REJUVENATION, I MEAN A TOTAL

REVIVAL OF THE VERY CONCEPT OF VAS. NOW VAS
IS A SINGLE MARKETING TOOL WITH LOT MANY
PURPOSES LIKE, SERVICE BENEFIT, REVENUE
GENERATION, RELATIONSHIP & TRUST BUILDING
AND EVEN TO GENERATE CONVERSATION AROUND
THE BRAND, PRODUCT OR SERVICE.

VALUE-ADDED SERVICES (VAS) ARE UNLIKE CORE

SERVICES. THEY HAVE UNIQUE CHARACTERISTICS
AND THEY RELATE TO OTHER SERVICES IN A
COMPLETELY DIFFERENT WAY. THEY ALSO PROVIDE
BENEFITS THAT CORE SERVICES CANNOT. WE NEED
TO UNDERSTAND THAT VAS SHARES SOME
CHARACTERISTICS AND THESE ARE TYPICAL IN
ALMOST ALL CATEGORIES.

1. VAS IS NOT A BASIC SERVICE, IT RATHER ADDS

VALUE TO THE TOTAL SERVICE OFFERED.
2. VAS STIMULATES INCREMENTAL DEMAND FOR
CORE SERVICE(S) TO ADD UP THE PROFITS.
3. CAN SOMETIMES STAND ALONE OPERATIONALLY
& EVEN FOR PROFITABILITY.
4. DOES NOT CANNIBALIZE BASIC SERVICE UNLESS
CLEARLY FAVORABLE.
5. CAN BE AN ADD-ON TO BASIC SERVICE, AND AS
SUCH, MAY BE SOLD AT A PREMIUM PRICE.
EXAMPLE: BIRTHING SUITES IN HEALTHCARE
INDUSTRY
6. MAY PROVIDE OPERATIONAL AND/OR
ADMINISTRATIVE SYNERGY BETWEEN OR
AMONG OTHER SERVICES – NOT MERELY FOR
DIVERSIFICATION

10

VALUE ADDED SERVICES
Concept, Context & Benefits
Every VAS will demonstrate one or more of the above
characteristics. Furthermore, a value-added service will
never stand in stark contrast to any of the above
characteristics.
VAS also has a certain time dimension associated with
them. Subjectively speaking, a value-added service today
becomes a basic service when it becomes sufficiently
common place and widely deployed to no longer provide
substantive differentiation on a relative basis. Like in
telecom, we are as used to of sms as for calling & receiving.
The Relationship of VAS to other Services broadly is divided
into two types of VAS. The first service type is those value-
added services that stand alone from an operational
perspective. These types of services need not be coupled
with other services, but they can be. In Telecom, many non-
voice services fall into this category. They are often
provided as an optional service along with voice services,
but they could be offered and used by themselves without
Cover Story
the voice service. For example, SMS could be offered and
used as a service without voice calling.
The second, and arguably more numerous and important
type of VAS, are those services that do not stand-alone.
Instead, this category adds value to existing services.
While it seems implicit in the definition of value-added,
this is an important principle that makes value-added
services stand apart from other services.
RE-DEFINING VAS
With the constant change and development in economic
conditions, customer insights, product categories, FDI
and increasing competition, Business needs to innovate
to sustain the product/brand and to survive in the mad
rush of options for the customers. And the marketer is
the person who is at the helm of this task.
The increasing competition among brands to create a
11
space in the consumer’s mind have had been the biggest say that the success of sms service as VAS is essentially the
challenge since ages. The inception of advertising resulted turning point for the marketers in service industry.
in warfare between brands. The era of innovation
VAS as such is a popular term, has emerged as a separate
marketing ruled the roost and the war of brand survival
became more intense. And the definition of marketing
went on to constant changes. Broadly, the change in media
& promotions looks like this-

Barter-Print-Radio-Television-Outdoor-Internet-
Mobile-Sms-Digital media-OOH

It’s been evident that the business has been on a constant

change after the t-word i.e., Technology. The above set of
media tools depicts the need of modulations in the
marketing due to technological advancements. Not only
that the trend of innovations in technology is been rapid
and is still growing fast, constantly challenging the
marketer to provide innovative solutions and execute
perfection. All this has resulted in a dire need to
differentiate and add value and that’s how we have VAS.

Media has been ever emerging, by all means trying to allure

the consumers. But with the concept of ‘Consumer
Awareness’, there was an immediate need for the marketer
to get into consumer insight which comes from
understanding Consumer Behaviour.

Relevance + Truth = Consumer Insight

This has led to the new phase of Consumer marketing,

namely ‘Customised Marketing.

THE TURNING POINT IN VAS STORY

Wikipedia (still) Defines VAS as - A value-added service
(VAS) is popular as a telecommunications industry term for
non-core services or, in short, all services beyond standard
voice calls and fax transmissions but, it can be used in ANY
service industry (eg. Web 2.0) for the services providers
provide for no cost to promote their main service business.
Undoubtedly, the evolution of VAS was through the SMS
services, and that was probably the first value add after the
mobile calling services which the consumers even
experienced. Since then SMS have been equally popular.
Yes, because of the competition getting fierce the service
providers have made them interesting & playful as well.
The very concept of VAS got popular with the telecom
industry trying to get the first among each other by more
value addition and less costs. However, due to the
technology there has been considerable time taken in
offering better & interesting deals. But, by that time
various industry segments & categories started picking up
VAS as a part of their product/service strategy. So we can
category in the service industry. Almost all the segments of
service industry are picking up the concept of VAS and
those who have already are looking for constant
innovation, because competition is fierce and customer is
informed. Let us look at the VAS in the current marketing
scene briefly in the Telecom, Media & Entertainment &
Healthcare sectors.
VAS ENHANCING THE POSSIBILITIES OF VALUE
PROPOSITION
Coming to the Value Proposition being created by Value
Added Services, first let us see what is Value Proposition?
Creating a value proposition is a work of Craft & Creativity.
Your message should deliver the value proposed by
facilitating the customer with an answer to, Why the
customer should buy this product/service and precisely,
why now?
In marketing terms, we can also define value proposition as
a Positioning Statement of a Brand. In VAS it is a statement
of service & promise.
A value added service has the property to add up to the
value proposition through various ways like consumer
benefit, convenience in offering, minimal or no cost and
then the marketer communicates the proposition in a
variety of visual & textual ways.
VAS ON THE VALUE PROPOSITION TEMPLATE OF
GOLDSBROUGH CONSULTING
A LIGHT-HEARTED EXAMPLE
It’s tongue-in-cheek, but demonstrates how the template
can be used.
For a 20 somebody from a call center who wants to sort a
messed up relationship, our Love Guru Service is a live
mobile help, which provides a customized relationship
consulting & tips anywhere.
Unlike radio shows, Love Guru takes care of the
confidentiality & individuality, and gives an option to keep
the consulting personal.
This is because of our unique customer based & customer
oriented value added services. Love Guru - the so
personalized & customized Mobile Consultant.
Tip for Readers: Try your value proposition on your
colleagues, friends etc and more importantly on the
prospective buyers, if you are a service provider.
VAS – INDUSTRY ADOPTION RATE
Telecom industry today survives, competes and excels on
the basis of Value Added Services. VAS has almost got
embedded in the service offerings of all the telecom service
providers. The emergence & growth of VAS in telecom has
been phenomenal and the competition fierce. The
technology has played its role and the customer is getting
all enslaved to technical convenience. And for that they are
ready to pay because it saves time & effort as well.
VAS in Telecom is popular in the following service
categories:
 Entertainment VAS
 Info VAS
 mCommerce VAS
 Mobile Advertising
 3G Technology
 Mobile Music
If we go by the figures, Value Added Services in the telecom
sector is expected to be Rs. US $ 4 billion Industry in India
by 2015. Currently the industry which is pegged around
revenue of US $1.2 billion will see major growth in the
music and mobile gaming segments suggests a
PricewaterhouseCoopers report.
Media & Entertainment:
Similarly, there has been a great hue & cry for the content,
maintenance and control in the media & entertainment
industry. The media segmentation and proliferation has led
to the formation of special niche segment of audiences
with their own choices and preferences. This has put the
service providers to innovate their offerings to get the
maximum audience. And that’s why VAS is emerging fast in
the Media & Entertainment Industry especially through the
Reality Shows, Engagement Marketing etc. IPL, Roadies,
Little champs being the latest example. However, Star
Plus’s KBC is still remembered as the trend setter.
Technically speaking the following are the future trends
which all the service providers eye for higher revenue
generation,
 Online Radio & Music
 Digital TV
 Advergaming & Mobile Gaming etc
Going by a recent research study, as per the FICCI -
Federation of Indian Chambers of Commerce and Industry
and KPMG, media & entertainment industry in India is likely
to touch US$ 20.09 billion by 2013. The projected growth
rate is 12.5 percent per annum for the next five years.
Education, Retail & Professional Services is also fast
adopted Value Added Services as an integral part of their
service umbrellas. The popularity of VAS and the success
rate is the driving force for the marketers who are now
planning to offer to its customers something extra.

The popularity of VAS is tremendous in the marketing
circles. Not only the popularity, the opportunities and
scope are outstanding as the very concept of VAS survives
on constant innovation. The customer is informed &
demanding so are the channels. Latest success story in
innovation offering is of Viacom’s most recent biggest
success, Colors – the channel leader with its entire well
thought of shows.
Healthcare:
Though, there are comparatively larger costs involved in
the healthcare industry, the following are the popular
category of value added service in healthcare,
 Private Rooms
 Spiritual Architecture
 CAMS – Complimentary & Alternative Medicine
Systems
 Dietary Services
 Commercial VAS
 Telemedicine etc
There are both Growth drivers and barriers of VAS in the
Indian Markets. The customer response is so far so good
and the marketer is happy for it, and is encouraged to offer
something more & different but there is certain lacunae in
the system which turns the situation into a wary one. To list
a few barriers -
• Limited focus – On Youth & Entertainment
• Content Piracy
• Lack of Infrastructure
• Limited Pocket Share of the customers
• High costs to end users
• Absence of Utility Services
• Lack of transparency in revenue sharing
• Underdeveloped WAP market

VAS is emerging, evolving & growing very fast. A start-up venture for the telecom sector is now becoming a stepping stone
of marketing innovation. Phillip Kotler said, ‘Customer is the king’ and services marketing is living up to the expectations of
the king – the customer. The customer seeks variety, choices, offers, schemes, benefits etc to make a decision which is
value for money. As a result of this, each industry category is welcoming the cost effective tool for new age marketers –
Value Added Services. VAS definitely is the future of marketing.

WRITTEN BY:

JIGYASA LAROIYA DHIR

+91-9711196529
www.jigyasa-on-marketing.blogspot.com
14
All are invited Markathon | Sep-Oct
Markathon | Oct 2009

WINNERS
Best Article: Arpan Ghosh, IIM Shillong
Congratulation!!! He receives a cash prize of Rs. 1000 & letter of appreciation.

Silent Voice Winner: Swapnil Motghare, IIM Shillong

Congratulation!!! He receives a cash prize of Rs.500.

WRITE FOR MARKATHON

We are inviting articles from all the B-schools for regular sections of Markathon which
includes:
• Perspective: Articles related to development of latest trends in marketing arena.
• Productolysis: Analysis of a product from the point of view of marketing.
• Strategic Analysis: A complete analysis of the marketing strategy of any company or an
event.
• International Column: Articles covering latest marketing trends, innovative practices,
branding strategies etc. in the global perspective.

Apart from above, out of the box views related to marketing are also welcome.

Rules
For Articles:-
1. Mention your name, institute/organization with the article.
<Name_Institute/Organization>
2. The number of authors can be 3 at max.
3. Along with your opinion, send a passport size photo for the “Eye to Eye” section.
4. Format: Font - Times New Roman, Size - 12, Length <= 5 Pages in word doc/ docx.
5. Plagiarized articles will not be accepted.

For Silent Voice:-

1. Mention your name, institute/organization name with the entry.
<Name_Institute/Organization>
2. Entry should be in landscape mode and in .jpeg/.png format.
3. There should not be more than 2 members in a team.
4. One person can be involved in only one team.
Kindly adhere to all the rules mentioned above.

The best article will receive a letter of appreciation with a cash prize of Rs. 1000/- and silent
voice winner will receive a letter of appreciation along with a cash prize of Rs. 500/-.
The last date of receiving the entries is 15th October 2009. Please send your entries to
markathon.iims@gmail.com.

SUBSCRIPTION
Get the issues of Markathon in your mail box by dropping a mail to
markathon.iims@gmail.com.

15
 Pandora Box
THE LINK BETWEEN POPULATION
MARKETING
Arpan ghosh | IIM shillong
Introduction:
Can marketing be done in the same way that an
epidemic spreads in a certain population? This paper is
a set of ideas that I feel shows the relationship between
the laws of the natural world and the business world. It
seems that the extension of the Cournot’s Duopoly
Model in economics from two to n competitive firms
follows the same graphical representation as that of the
population of a particular species living in a closed
ecosystem. This would prompt the thought that the
behavior of an organization (both the firms and the
animal population being organizations with defined
hierarchies) would remain essentially the same
whatever be its surrounding in the sense that the
Darwinian laws of competition and the survival of the
fittest seem to apply. Now the question is can this
hypothesis be extended to the social setting where a
human population also has the same hierarchical
structure albeit not as explicitly stated or properly
defined as that of a school of fish or a colony of ants.
This is where I believe that population dynamics will
meet swarm theory. I believe that the overall size of the
population in a closed ecosystem (population dynamics)
will be affected by Darwin’s laws but how the existing
population behaves at a particular moment can be
mapped by swarm theory. The center of the population
and its outline will define the entire population and this
can be utilized by today’s modern marketers for their
benefit.
Objective and Problem:
The idea that I am proposing in this paper has been
worked upon before, but not in the same form. The
concept of viral marketing involves spreading an idea in
a certain target market through “word of mouth” .But
this process, I believe , is unstructured and uncontrolled
in the sense that the advertisers cannot be certain
whether their message will reach the right people,
cover the entire market or have the desired effect. Now
what I want to do is to see if somehow, if I want to
advertise (spread an idea), can I identify the centers of
Markathon | Oct 2009
DYNAMICS AND VIRAL
power (the people) that will be the most potent
amplification points for the spread to the entire
population?
People believe friends, family and acquaintances much
more strongly and willingly than they do the typical
salesman. That means that if I am targeting only the 10
most influential (in real not nominal terms) people from
a population of 100 to carry my idea forward, I am in
effect increasing both speed and brand equity while
cutting costs drastically.
Methodology and hypothesis:
Now, again the question is - how does one identify the
center(s) of a population. This problem will be
compounded by the fact that the population size will
keep changing during the period of determination, the
individuals power to act as the center may vary and
the biggest problem of them all- The search for the
power points will have to be conducted from the
boundaries towards the center of the population
spread.
This is where chaos should play a part. As individuals
are iteratively eliminated to get to the real center of
power, a small miss in the initial assessment may
ultimately lead to a completely different entity than
what I was looking for and render the whole study
useless. I believe that given a particular population,
every individual/ organism should have a viral
potential. We can plot these on a graph and then try to
plot the “most critical path” (MCP)- a connection
between all these high viral potential individuals. This
will form the main conduit of information flow
throughout the population. Any other communication
or interaction with others in their sphere of influence is
a bonus. The communication flow has to be along the
MCP to allow the spread to the entire population in the
most efficient manner. Other communication will result
in redundancies. That means that we have to identify
the “center” and then work outwards in order to find
local solutions .When we reach the outer edge of the
16
 Pandora Box Markathon | Oct 2009

population we have to make a path from the center In another perspective for a more evolved search we
(global solution) through the local solutions. can look at a meta- Lamarckian MA that have the
candidate solutions competing based on incentives to
Thus taking both methods together, I believe that this
generate local improvements. An improvement of this
will be a 2 stage search in which we will first work
process will be a third generation MA that will have the
outside- in, eliminating local solutions along the way in
constraints and the search parameters also evolving
order to get to the global best fit according to the viral
along with the progression of the search for feasible
potential magnitude. Once this recursive elimination is
solutions.
over, we will have to work outwards again, picking the
eliminated local maxima and studying their interaction Conclusion:
effects with the non- solutions in order to determine
whether they or the global solution have a higher The idea for this approach is in a fledgling stage, but the
influencing power on that point of the population. benefit if an optimal search method can be developed
will be huge. Any organization will be able to pinpoint
The viral potential will solely be the influencing power
the individuals it has to target to ensure that its product
of the solution in a positive manner in order to spread
or idea is spread to each and every target in the
the company’s requirements in the fastest and least
population. Thus potentially, before the product launch
costly manner. This leads to the intuitive result that I
in a country or region the entire market size, regional
can fiddle around with viral potential that is increase it
distribution and demographics can be estimated. The
with positive reinforcements or decrease it with
only limitation of the solution, if it is possible, at this
negative ones. But here again economies of scale will
juncture is the scalability of the model and the huge
kick in as increasing the reinforcements beyond a
computations required for calculating the viral
certain point will lead to decreasing results as the
potentials and doing the global search.
sphere or the level of influence cannot increase beyond

markathon
a certain point.
We can define a parameter for the level of influence
that a particular solution has on the surrounding points.
As soon as the level of computed influence drops below
the defined level, we have to look for a solution that
better influences the points and thus optimize our
agents for the maximum impact.

Global Optimization and Search Method:

One way to solve this problem is to do a search of the

feasible solution set and look to optimize the solution.
This would be a constraint bound programming where
we would be maximizing the objective function. I
believe that this should be a 2 stage search – the first to
identify a global maximum that should be the starting
point of the propagation. This type of search I believe
has already been incorporated in memetic algorithms
(MAs) or hybrid genetic algorithms. This will lead to a
kind of a concentric search where the constraints will
be used to obtain feasible solution sets in each iteration
thereby evolving newer populations. This should ideally
lead us to the starting point of propagation, the
individual having the highest or lowest value of the
objective function.

17
Brand Strategy Markathon | Oct 2009

The Economic Growth of the Mass Market

and its Impact on India’s Cosmetic
Industry
TRIDIB BANERJEE | NMIMS UNIVERSITY, MUMBAI

Brands cater to the Indian cosmetics society through its wide range of products, with continuous
up gradations and innovations. The basic idea remains that youth and style do not have a
substitute. Couple it with foresight, research and constant innovation, the recipe for success is
ready on the platter. The strategy of the networks is redefined in line with its vision of
empowering modern India by serving superior beauty and healthcare products through customized
and professional services. Growing disposable income and changing lifestyles in urban India have
led to greater awareness about personal grooming, health and wellness. The emerging trends stand
in good stead for Beauty and Wellness services sector, presenting a large and exciting
opportunity. Let us take a closer look into the details of the current status of the brands as far as
the cosmetics industry in India is concerned.

India with its huge market potential promised to be a

major hit as a destination for the various brands across.
While the HUL powered LAKME moved for the mass
market, brands like L’OREAL tapped the niche
customer segment. Down the years, the legacy of these
brands has mesmerized the customers through constant
innovations and appropriate strategies. But since the
new millennium, the customer demographics took a
major progressive move up and now came the necessity
to take the marketing concepts to a different level to
match up to their expectations.

A distinct increase in the educated population along

with their web based knowledge enabled them to
scrutinize the gory details of a product and this resulted
in a more logical, aesthetic and stringent demand. The
result was evident. LAKME showed a clear dip in its
sales. Being the major marketer to India’s mass market,
their reforms form a basic ingredient of our analysis of
the Industry for the “Common Man”. Now, the question
arises that what does a brand with a legacy of over 50
years have to do to resurrect its position back among the
elite and make its balance sheets healthy?

18
 Brand Strategy
LAKME’s answer was prompt. They came up with some
rudimentary concepts to connect to the customer and
reincarnate the theories of direct marketing via the
web and media. Be it the “Elle 18” or the “LAKME
Fashion Week”, the impetus was to reach out to the
mass using punch lines like “WOMEN’S NATURAL
BEAUTY” and “WOMEN OF ALL AGES”.
The other interesting initiatives included the “Beauty
Saloons” and the “Bridal Sutra” concepts which were
targeted to the specific genres with optimum vision at
the aspect of “value for money”. They tapped the web
market with élan as they used facilities like “Ask
Lakme” and “Style File”. The very fact that the
customer could customize a perceived look for herself
gave her incentive enough to hit the saloons and the
cash books gradually began to look promising again.
The health sensitive new age customer had to be
convinced about the medical consequences of the
product and here the nail was hit on the head by a
strategic partnership with “AYUSH”. The brand LAKME-
LEVER came into existence and the herbal market was
catered to with legitimate conviction.
The imperative intent for the cautious approach has
been to target the mass market. In order to survive the
test of times, it is essential for the cosmetic brands to
consciously try and implement/avoid the following
fundamental aspects.
IMPLEMENT
• Convince people that cosmetics are an
essential part of daily grooming.
FIGURE 1 : TECHNOLOGY IMPACT
Markathon | Oct 2009
 Produce multifunctional products.
 Encourage technological innovations.
 Synchronize with the latest trends of the
industry.
 Establish the brand loyalty among its
consistent customers (Direct marketing if need
be).
AVOID
 Avoid the defectors. In mass market, this is
lethal.
 Avoid reactive policies; proactively encourage
interactions and dialogues to get connected to
the customer.
 Avoid being limited to bigger outlets and
enhance accessibility to the customer.
One major drawback in the growth approach of
cosmetic honchos has been the lack of consolidation
of the web services. A popular customer survey
reflects a significantly poor segment having adequate
knowledge of its existence and usage (clearly evident
in figure 1 shown below). Internet and its proper
usage may give the industry leaders and new comers
the necessary and sufficient leeway to intrude into the
fairly open market segment (refer figure 2 below).
In a nutshell, it has been an eventful revamp on the
part of the brand, more reactively than proactively
and all this can be attributed to one subtle yet
unavoidable factor, the changing demeanor of the
customer base, India’s mass market.
FIGURE 2 : FUTURE PROMOTIONAL MEDIA
19
 Competition Markathon | Oct 2009

Silent Voice
LAST MONTH’S RESULTS
Theme: “Cadbury Bournville: fine dark chocolate”
Judge: Nimit Kulshrestha, Manager, DMA

WINNER: Swapnil, IIM Shillong

Congratulations!!! Swapnil receives a cash prize of Rs 500.

HONOURABLE MENTION

Ankit & Pooja, NMIMS

20
Competition Markathon | Oct 2009

Abra, IIM Shillong

Sunil, IIM Shillong

NEXT THEME FOR SILENT VOICE:

“Kingfisher: Fly with style”

LAST DATE OF SENDING THE PRINT

AD: 15th October, 2009

EMAIL ID:
markathon.iims@gmail.com

21
 Specials
BRAND WATCH
The Devil’s End
Onida is finally replacing the iconic devil character as its
mascot. The company feels that the character has lost
relevance in an individualistic era and the original
concept of envy that was associated with the character
is lost. Onida plans to come up with a Rs. 120 cr
marketing campaign targeted at meeting the transition
between traditional roles and its aspirations.
PRODUCT LAUNCHES
iPod goes the camera way
Apple unveiled the new iPod Nano adding a video
camera, mike and speaker to the popular music player.
The new iPod Nano also features an ultra-thin and sleek
design with a larger 2.2-inch colour display, as well as a
built-in FM radio and pedometer. Users can instantly
watch the video they shoot and upload it and share it
over the internet. Apple also simultaneously slashed the
prices of the other models of the iPod.
Ayurveda with a Dabur twist!
In its quest to dominate the skin care segment, Dabur
India has launched the UVeda giving the company a
play in the entire segment. Dabur takes on the might of
Fair and Lovely with its positioning in all the segments
with Gulabari in the popular segment, Fem in the
instant improvement segment and now UVeda at the
top end.
Google launches Fast Flip
Internet giant Google has unveiled its "Fast Flip" online
news reader featuring stories from major media outlets,
including the BBC, The New York Times and The
Washington Post. Fast Flip allows users to quickly
browse through news stories from the websites of
Google's three dozen partners. A Web surfer can
quickly jump from one article to the next using large
arrows at speeds significantly faster than the time it
usually takes to load a Web page.
Microsoft’s iPod killer gets a new version
Markathon | Oct 2009
Microsoft launched the new Zune HD in a latest move
to consolidate the portfolio of its Zune range and to
establish a credible rival for the iPod. Other versions of
Zune will be discontinued as the company focuses on
the High Definition version. Zune HD has an organic
light-emitting diode (OLED) multi touch screen, an
NVIDIA Tegra HD processor and HD Radio capabilities, a
new Quickplay menu, a Web browser. Users can store
and play back 720p HD video files to an HDTV using the
Zune HD AV dock accessory. HD content can be
purchased from the Zune Marketplace. Zune HD
includes a built-in FM tuner, and also has a portable HD
Radio receiver.
COMPANY WATCH:
Stay healthy to grow wealthy
Dettol has converted this pithy saying into a seemingly
unstoppable growth engine as the seventy-six year old
iconic brand from Reckitt Benckiser is poised to achieve
the Rs.1000 crore turnover mark before the end of the
year. What is remarkable is that Dettol with its focus on
health has achieved this in a market which has seen
other companies like Unilever lose its market share
rapidly.
Big Mac becomes price conscious
In a move aimed at increasing the footfalls and store
utilization, McDonald’s India has decreased the prices
of its extra-value meals by twenty five percent. Its
extra-value meals, McVeggie and McChicken are going
to cost Rs 85 and Rs 96 respectively. McDonald’s aims
at capturing a greater percentage of the dining market
and increase repeat customers.
Ferrari defies recession
Luxury automobile maker Ferrari has defied recession
to showcase new models at the motor show at
Frankfurt. The normally recession-proof luxury market
has been hit hard by the current economic downturn
leading to almost an 8% decrease in Ferrari’s revenue.
Yet another SUV from M&M
Mahindra and Mahindra Ltd. plans to launch a premium
sports utility vehicle that would be priced above the
Scorpio. The company is expected to invest about 700
22
 Specials
to 800 crore in this new product which is expected to
roll out in the next year. This first vehicle would roll out
with a diesel option while others like hybrid could
follow later of the new SUV. It will also be launched in
India with other foreign countries.
INDUSTRY WATCH:
Spidey goes to Disney!
In a deal that could redefine the media and
entertainment industry, The Walt Disney Company has
announced that it would acquire Marvel Entertainment
Inc. for about 4 billion dollars. This deal sees Walt
Disney acquire control of more than 5000 Marvel
characters including Iron Man, Spider-Man, X-Men. This
provides Walt Disney with an access to the youth
market that has rejected its products for some time
now and also gives it a source of perennial funds from
the successful movie franchises.
Drought to hit auto co’s monsoon sales
The looming drought conditions in many parts of the
country have cast a pall on the sales of automobiles in
the rural parts of the country. The loss of agricultural
revenue could heavily impact tractor and motor cycle
sales hitting the bottom lines of companies like Hero
Markathon | Oct 2009
Honda that derive a significant portion of its sales from
the rural sector.
Titanic Struggle for Cadbury
The food industry faces imminent consolidation with
the battle for Cadbury heating up. The initial offer by
Kraft foods at 16 billion was rejected by Cadbury.
Cadbury said that the low growth business model of
Kraft Foods will not be suitable for its future prospects.
In latest updates, Kraft Foods is considering a
sweetening of its offer to woo Cadbury.
Shakeup in the laundry market
In a situation eerily reminiscent of Nirma’s ascendency,
small detergent players have cornered a significant
chunk of the Indian laundry market. It has come to light
that over 500 new brands of laundry bars and over 200
washing powders have mushroomed in the last one
year in local and regional markets. These companies
have a low cost model and are low in turnover and their
increasing dominance coinciding with a fall in the
market share of major players like P&G and Unilever
has forced the bigger brands to rethink their pricing
strategies.
~ Varshik N | IIM Shillong
23
Please send in your comments/feedback to:
markathon.iims@gmail.com

© Team Markathon, IIM Shillong