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Revive...
Redeem...
Reaffirm...
November, 2010
mPower Newsletter
From the editor’s desk...
A typical Word Association scenario, these days:
Shahrukh Khan – Kajol
Harbhajan Singh - Century
IIM – Placements
B-School Fest – Backwaters!!!
This Month, IIM Kozhikode tries to ‘Discover the Difference’ through its annual
management festival Backwaters V2.0. Erstwhile, a management-cum-cultural
festival, Backwaters has undergone a metamorphosis this time to stand purely as
a management festival. The scale of the event has already caused frenzy in every
possible media. Between the 19th and 21st of November this year, all eyes will be on
God’s own campus celebrating its flagship event.
In this month’s edition we have a special feature on Backwaters & Horizons, the
annual management conclave. We also have an article by Mr. C.M. SETHI, the
CMD of Reckitt Benckiser who will grace the inaugural ceremony with his
presence. Marketing whiz kids of IIMK decided to get together and write articles as
a group this month and we have featured a couple of
them. Harley Davidson which has been the darling
and dream of generation after generation of hardcore
biking enthusiasts finds itself covered in ‘Konsume’.
We also look at a new emerging class of marketing
termed ‘Cause Marketing’, which is in vogue off late.
Plus, we keep up our promise of delivering the latest in
the marketing world to you!
Special thanks to Ms. Janani Kannan of PGP14 for designing this month’s issue.
IN THE BOX...
Backwaters v.2.10
Pg. 6
The Advent of Harley Pg 12
The Spirit of Entrepreneurship
and Innovation
Pg 8
Cause Marketing
Pg 15
In the News… Page 4
Big CBS Prime, the to be launched English GEC from the stable of Big CBS Network has popped up with a
multi dimensional campaign on both Out-of-Home media and Radio in Delhi and Mumbai named 'After You,
Mr. President' just at the time when US Prez Barack Obama is on his much hyped India
visit. The campaign has reportedly been successful in igniting curiosity flame in minds
of viewers as it is indicating towards the humbleness of the channel imparted to
Obama. The marketing campaign tends towards allowing Obama to carry on with his
popularity and impact during his whole visit and will open its pandora's box later. The
hoardings display the American flag, with Big CBS Prime branding. The outdoor has
been launched in Mumbai and Delhi, while the radio campaign is being played out in 10-12 of Big FM's c
hannels.
The car rental company, Avis India, which is a joint venture between the East
India Hotels Group (Oberoi) and Avis Europe, has rolled out an out of home
campaign to promote self-drive rental in India. Avis India launched a self-
drive service in India a couple of years ago - but there was a lack of aware-
ness about it. To create awareness and create a culture for self-drive, the
company launched two driving tours: Magical Deserts of Rajasthan and Hima-
layan Expedition, wherein the interested travelers can rent an SUV at Rs
2,000-Rs 2,500 per day. The campaign, which initiated from New Delhi early
this year, was later introduced in Bengaluru, Chennai and Mumbai. Also, the fleet, which consisted of only Tata
Safari vehicles earlier, now includes models such as Ford Endeavour and Mitshubishi Pajero. "There are about
30-35 cars dedicated to this campaign," says Sood.
Big CBS Prime creates anxiety with 'After You, Mr. President'
Avis promotes self-drive through OOH
Kotak Mahindra unveils new campaign for 25th anniversary
To celebrate its 25th anniversary, Kotak Mahindra Bank will unveil a high-impact campaign starting from
November 21. Cartwheel Creatives has been roped in for the corporate
campaign, which will feature a series of 10-second television commercials
and print campaigns. Around 10 such short commercials will be on air be-
tween November 21 and 25 across channels.
Speaking to Campaign India, Karthi Marshan, executive vice-president and
group head - marketing, Kotak Mahindra said, “This is a major milestone for
the bank, and is completely clutter-breaking as none of my competition can
talk about it anytime soon. Moreover, the 10-second commercials will be placed immediately after the
programming, so that it generates maximum amount of impact. Hence, these will be the first ads dis-
played during the commercial break, and register maximum viewership.”
IN THE NEWS...
The product is a global brand licensed to Beverage Partners Worldwide (BPW), a joint venture between The
Coca-Cola Company and Nestlé S.A. The lifestyle product has been launched in lemon flavor and is being
made available in an 'on-the-go' 400 ml PET bottle priced at Rs 25. It will be available to consumers in
Mumbai through select channels and outlets. The bottle has been specifically designed to resemble a sculp-
ture of sorts and mimic an 'ice rock'. The tagline of the brand is, 'Lighten up; with Refreshingly Light Lemon
Iced Tea!' The product is already present in over 60 countries and is
available in several flavors besides lemon. It has a strong presence in
the United States, Canada, Australia, Taiwan, Italy, Spain, Switzerland,
Germany and China. The product is being rolled out in phases and the
Mumbai launch is the first part of this phased launch. Next year, it will
be rolled out pan-India. Fort reveals, "This is a test launch, and in 2011,
there will be a national rollout of the product. I, however, cannot put
an exact date to when the brand will move to other Indian cities.
" Nestea primarily targets young adults who are optimistic, energetic
and ambitious. The company specifies that Nestea finds a fit with this trendy TG, as the brand itself stands
for modernity and youth and current trends. The launch rests on the rationale that the culture of consuming
iced tea prevails strongly in India, in part owing to the current café culture. The upcoming advertising cam-
paign will be loaded heavily in favor of focused and experiential sampling. This will be done via consumer
activation programs and road shows at touch points populated by young adults, such as malls, colleges, high
-end traditional trade outlets and multiplexes. The execution, it is believed, is bound to be segmented and
innovative.
Nestea takes the experiential marketing route for India launch
The opportunity in digital ‘second homes’
Brands including LG, Maruti A-Star, Tata Sky, Godrej, Fastrack, Idea and Airtel have gone online with in-
novative concepts. “Scan my bag”, an online campaign by Fastrack, attracted over half a million visitors.
It educated them about the new range of Fastrack bags. Users spent over three minutes (average) on the
site, Fastrack claims. “Engage the user and generate buzz — these
were the two broad objectives of the campaign. During the current
festive season, LG Electronics introduced an online ‘Light a Diya’
campaign, where a visitor could light up a virtual diya, send sweets and
greetings and download rangoli. “In two days, more than 5,000 people
lit the diya. This helps us to create emotional as well as cultural
connect with the visitor, which in turn makes him feel connected to the
brand. “ Said LK Gupta, CMO, LG India. LG spends around Rs 20 crore
on digital media and expects to raise this by 50 per cent next year.
Airtel’s online initiative, “Airtel Real Fans”, received half a million views, with over 2,400 video uploads.
“India’s teeming 550 million-plus youth population makes digital marketing an appropriate youth
medium,” said Mohit Beotra, head - brand and media, Bharti Airtel
The backwa-
ters are no
longer calm
and still, Back-
waters v2.10 is
here to stir up
emotions. The
Annual Busi-
ness School
Meet of Indian
Institute of
Management
Kozhikode is
back, but this
time the fest that has been a
Management and Cultural fest
for all these years has decided
to revamp itself into a pure
management fest to be
launched on a scale
larger than ever.
With the growing
importance of man-
agement forums
and management
conclaves, the insti-
tute and the stu-
dents have taken
this initiative of seg-
regating the Man-
agement and Cul-
tural fest.
The fest is scheduled to take
place in the month of Novem-
ber from 19th to 21st. It runs in
parallel with Horizons, the
Management Conclave where
the biggest business minds of
the nation share
their insights and
their point of view
offering much to
learn with eclectic
perspectives com-
ing on board. The
top 30 B schools
fight it out over a
period of the three
days to emerge the
best biz big wigs.
The number of
events has been in-
creased this year to include
more creative and thought in-
tensive challenges. The
theme of the fest this year is
to “Discover the Difference”
–where the intention is to
revive, redeem and reaffirm
the unique facets of India Inc.
Curiosity has its own reasons
for existing and backwaters
2010 is glad to add to the
repertoire of reasons. It has
promised to be a fest that
will push the budding CEOs
and entrepreneurs to the
limit of testing their logical
construct and get the best out
of them. A perfect platform to
showcase one’s talent and nur-
ture it too, backwaters has
come up with a new set of
events that do all of this and
more.
Backwaters is the only busi-
ness fest in India that places a
lot of emphasis on importance
of social ventures and ideas
that are viable in the develop-
ment sector. This stands out as
a single most differentiating
factor of Backwaters and by
far the most attractive as well.
The White Knight is a one of a
kind and absolutely unique
Business Plan competition
which differentiates Backwa-
terv2.10 from all other
business fests; reason be-
ing that White Knight is
not just another B-plan
competition but a social B
-plan plan competition.
With the social develop-
ment and philanthropy
gaini1ng visibility and im-
portance all over the
world and in India, we feel
that this event is highly
relevant. Not just that but
it is also an insight into how
the country’s future managers,
CEOs and policy makers will
require to keep the greater
Page 6 konsume November 2010
The Annual Business School Meet
Page 7 konsume November 2010
picture, the society
and social fabric of
the nation, in mind
while blueprinting
plans and projects.
The corporate
quiz, Bizzathalon
conducted by the
nationally re-
nowned quizmas-
ter Avinash Muda-
liar is expected to
be one of the high-
lights this year.
Avinash Mudaliar is
one of India’s leading
quizmasters and the
former Secretary of
the Karnataka Quiz
Association (KQA),
South India’s fore-
most quizzing or-
ganization, having
conducted more
than thousand quiz-
zes, and won over
800. He is one the
founding members
of Bangalore Quiz Group and
he has also been instrumental
in initiating a quizzing forum in
Haryana, The Haryana Quiz-
zers Forum - Option44. This
quiz is open to MBA students
as well as corporate and un-
dergraduate crowd.
Another flagship event
launched this year is Avatar,
the Leadership Challenge, in
association with ITC. Avatar
calls on to all those individuals
who think they can portray the
best business personalities,
pitch their best voice and put
their best foot forward to be
voted as the “Avatar”. It has
been said “Organization does-
n't really accomplish anything.
Plans don't accomplish any-
thing, either. Theories of man-
agement don't much matter.
Endeavors succeed or fail be-
cause of the people involved.
Only by attracting the best
people will you accomplish
great deeds.” And this event
seeks to find the best people
and watch them outdo the
other on a level playing field.
The event is slated to be the
biggest test of their manage-
ment acumen with challenges
that test every possible ounce
of creativity they have left to
exhibit.
Backwaters v2.10 has organ-
ized a corporate dinner for
this year’s meet and the Mala-
bar Chamber of Commerce as
well as Calicut management
association have been invited
to be the part of the same. The
event Shiksha
which involves
personality devel-
opment work-
shops for over 300
students from
Calicut is a part of
the special initia-
tive taken up by
the students of
IIMK to involve
the student fra-
ternity from in
and around
Calicut. Keeping
this in mind this
year some of the
events have been
specifically de-
signed to increase
the participation
from the under-
graduate students
of Calicut and in-
volve them as a
part of Backwaters
v2.10. Events such
as Shiksha, The
Corporate Dinner and Biz-
zathalon – the corporate quiz
have been designed
with this in view.
Man finds himself
time and again in a
world where uncer-
tainties abound.
Managing under un-
certainty is among
the most difficult
tasks any leader,
manager or individ-
ual faces even in the
best of times espe-
cially when the globalized,
capitalistic world is in sham-
bles and the task looks more
daunting. Backwaters v2.10 is
striving to create a balance
between the crusader and
complacency, to find the cour-
age to drive the engine of posi-
tive change while maintaining
social development always in
sight and in thought. This
year’s annual meet is certain
to be a roaring success.
Page November 2010 konsume
I believe there is every
chance that over the com-ing years India will become one of the two largest
economies in the world. Earlier this month, the
most powerful man in the world, the President of the United States, Mr. Barack
Obama made a statement during his India-visit that
“India is no longer a rising superpower; India has
risen”.
I can tell you with author-ity that he certainly con-veyed the sentiments of
Corporate India, which is drawing up huge plans for
the future keeping in mind that, very soon, India will have the youngest task
force in the world. At 63, India is a nation of young
people with over 60% of the population under 25
years; you all are truly the present and the future of India. In the near future,
the youth will play a crucial role in the country’s
growth story. Being a young country in an ageing world, we can fully realize
the potential it gives us only by giving opportuni-
ties to the youth. The pecking order of world economies is undeniably
changing and India will take centre-stage. The
onus is on young people like you to keep the
momentum going.
Coming from a global or-ganisation with deep-rooted Indian operations, I
can tell you with experi-ence that, India is an ex-
tremely heterogeneous market and localization is the key to achieving suc-
cess due to the stark demographic contrasts
that, every region offers. Companies that listen to customers succeed when
customers realise that you are listening to what they
really want.
Much of this boils down to the local talent we employ.
At Reckitt Benckiser too, we differentiate ourselves
from rivals by the people we employ and the respon-sibility and entrepreneurial
drive we encourage from day one. The rapid growth
of our markets in India means we have a hunger for new talent. The educa-
tion system in India is pos-sibly the most competitive
in the world – far more so than any in the developed
world.
The leading universities are creating some of the brightest graduates any-
where in the world, but we are looking for people who
can offer something more
than just intelligence to fill
our key sales, R&D, mar-keting and supply chain positions.. Entrepreneurial
spirit, dynamism, con-sumer insight and an urge
to make things happen are just as important. It is a combination of those ingre-
dients that can lead to a fulfilling career at Reckitt
Benckiser where our unique culture means suc-cessful entrants can expect
rapid promotion and gen-
erous rewards.
We allow people to take
ownership of their ideas, implement them with pas-
sion and gain satisfaction from the entire process. That enables us to keep
ahead of the market and our competition and moti-
vates our talented work-
force.
In many ways, the growth
of the Indian economy is reflected in the rapid ex-
pansion of Reckitt Benck-iser. As India pursues a strategy of rapid change
and development, so must we as a leading global
force in the provision of household, health and per-sonal care products move
and adapt.
An example that I’d like to discuss here is the launch
THE SPIRIT OF ENTREPRENEURSHIP AND INNOVATION C.M. SETHI CHAIRMAN & MD Reckitt Benckiser
Page 9 November 2010 konsume
THE SPIRIT OF ENTREPRENEURSHIP AND INNOVATION
An example that I’d like to
discuss here is the launch of Veet in India. Veet is one of the leading depila-
tory products in the world but we didn’t simply im-
pose the same launch on India as we had run with in the rest of the world. Our
local staff was instrumental in selecting which products
within the range would work in India, choosing the size of the packaging and
creating a whole marketing strategy. We chose differ-
ent advertising initiatives from the normal TV cam-paigns, making far more
use of outdoor advertising and in-store marketing
campaigns that gave the launch a completely differ-ent look from those in
other areas. Those local decisions, which were
taken by people at a far lower level than country or
brand managers, ensured we were able to take Veet from launch to the leading
brand in just a few years.
That success would not have been possible without
allowing junior employees with young and fresh ideas
to take the initiative. Many of the lessons we learnt from this have now been
applied elsewhere in the world. India, with its prolif-
eration of small stores, and culture that changes from
state to state means giving
local talent the ability to prove their own ideas is even more important. But
it is not just ideas that cross borders. We actively
encourage all our staff to spend time outside of their home countries. The move-
ment across geographies, coupled with our own train-
ing programme which is recognised as one of the best in the industry, makes
people better managers and encourages personal
development.
But the movement is far from one-way. Managers
from across the world have worked in India, picking up ideas and developing initia-
tives along the way. It means that we are Reckitt
Benckiser, a global com-pany. We very much work
with multinational talent across countries and that is reflected in our style of
management. More than 60 nationalities are rep-
resented in our top 400
global managers.
Giving staff the opportu-
nity to experience other cultures enhances their exposure to new ideas
and makes them adapt-able is a key factor which
drives innovation. Our industry and our brands
can only thrive if they are
constantly changing – not just for change’s sake but to offer consumers better
products and give them something that can im-
prove their lives.
It never ceases to amaze me at how our country and
the business landscape are changing. But what excites me most of all about the
India story, is the knowl-edge that with the talent
we have in the country and the people we recruit, the potential is almost limit-
less. Thanks to the drive and initiative of our talent,
we have created entire markets in India where none previously existed
and there is still so much more we can do. All that
restricts us is the bounds
of our own imagination.
C.M. SETHI CHAIRMAN & MD Reckitt Benckiser
The wait of Bike enthusiasts
would finally be over in a
month with the launch of much
awaited entrant into the mar-
ket – Harley-Davidson. The ex-
citement over the famed bike
maker entering India is already
palpable online. A clock on the
Harley Davidson-India website
is counting down hours, min-
utes and seconds for the
"adventure" to begin. Harley-
Davidson is the global leader in
cruising and touring motorcy-
cles and ranks as one of the
strongest brands in the world,
with motorcycle sales now in
more than 70 countries. India’s
rapidly growing economy, rising
middle class and significant in-
vestment in construction of
new highways have opened the
door to leisure motorcycle rid-
ing.
Harley-Davidson often abbrevi-
ated as Harley or HD is an
American motorcycle manufac-
turer. The company manufac-
tures heavyweight motorcycles
(over 750 cc). The motorcycles
have a distinctive design and
exhaust note.
Harley has been in business
since 1903, “Four young men
experi-
mented with
internal
combustion
in a tiny
wooden
shed. Not
only does
the shed not
burn, but
the motorcycle they build goes
on to serve for over 100,000
miles”
Harley-Davidson has been able
to build a community of enthu-
siasts around its brand that in-
cludes members from very di-
verse groups, and with almost
no advertising. How does the
king of heavyweight motorcy-
cling keep its fans so loyal? It
gives them a reason to
"belong."
It has global community of rid-
ers, 10 million bikes on the
roads, million members of the
Harley Owners Group (HOG)
that are active members world-
wide.
Harley Davidson appeals to con-
sumers through brand identity.
“The value of brands in today’s
environment is phenomenal.
Brands have the power of in-
stant sales; they convey a mes-
sage of confidence, quality and
reliability to their target mar-
ket.” Everybody recognizes the
bar and shield symbol of a
Harley Davidson --"Buy a
Harley, buy the best --ride a
mile and walk the rest!"
Another marketing strategy
Harley Davidson uses is the slo-
gan “Live to Ride.” They create
an image by telling consumers
that while riding one of their
bikes it relieves a lot of stress.
Since Harley has a huge recog-
nizable brand image, this gives
the Harley motorcycle a favor-
able resell value. Many motor-
cyclist treat their Harley’s as
investments. After all, Harley
cannot build the motorcycles
fast enough to keep up with
demand.
Harley also uses their website
as a marketing strategy. The
website provides a means of
communicating with all of the
riders and soon to be riders. It
Page 10 konsume November 2010
The feeling of freedom and being one with the Nature comes only from riding a two
wheeler
“The wait is finally over for Harley-Davidson enthusiasts in the country. Beginning April,
motorcycle enthusiasts would be able to start bookings for their very own Harley-
Davidson.” Business Line
“The iconic US cult bike maker Harley Davidson is set to enter Indian markets , two years
after it was first granted permission to start operations in the country.” Business Standard
“Harley-Davidson to launch 12 motorbikes in India.” Economic Times
Page 11 konsume November 2010
is a way to stay connected to
Harley and the Harley
mystique
When Harley-Davidson was
being written off by the
American media and critics,
the company responded with
this—“You can file our obitu-
ary where the sun don’t
shine. Screw It. Let’s Ride” —
that pretty much sums up
what the company, its bikes
and their cult bikers are all
about. Here is a sample—
“Only 2 kinds of bikers out
there—those that ride
Harleys and those that wish
they did! ”
Harley Davidson uses cus-
tomer surveys and motorcy-
cle rallies to conduct their
marketing research. This re-
search has influenced Harley
to start to manufacture mo-
torcycles for women. Women
riding motorcycles has in-
crease 10% since 1987. On
their website, Harley has a
separate web page for
women riders. On this page,
topics include why women
ride, learning to ride, women
riders making headlines, and
the history of female riders.
Harley-Davidson is finally in
India, a move that may
sweeten prospects for the
iconic American brand as
it struggles with numer-
ous challenges, not least
the continuing economic
recession back home.
Harley-Davidson is expected
to ship fewer bikes both
within the US and worldwide,
the credit crisis continues and
there are job cuts to deal
with.
With distinct income groups
emerging, companies will
need to look at a differenti-
ated portfolio in order to lev-
erage the increase in willing-
ness to pay.
The motorcycle market share
is about 83% of the total two
wheeler market in India.
Three-fourths of the total ex-
ports in the two wheeler
automobile industry are
made in the motorcycle seg-
ment. Increasing relevance of
urban India and growing
share of large cities within
urban India are important
triggers for Harley.
By 2014, the middle-high in-
come band will consist of a
substantial 11 Mn house-
holds. At a median income of
USD 22500, this segment
represents a total income
pool of nearly USD 250 Bn.
With spending patterns simi-
lar to the high income group,
this segment represents a
very significant chunk of the
consumer base. Incomes are
slated to increase faster in
urban India. Expectedly, share
of urban India in the country’s
net domestic product would
go up from 52% in 2000 to
over 60% in 2011.
"India is important to our
long-term vision of being a
truly global company," said
Harley-Davidson Inc. presi-
dent and chief executive offi-
cer Keith Wandell. "We are
committed to India for the
long-term, and we are fo-
cused right now on establish-
ing a strong foundation."
With more than a billion con-
sumers, the promise of Indian
prosperity has lured even
other players like Ducati to
the Asian country as well.
The legendary motorcycle
brand is set to enter India
with its full range of five
THE ADVENT OF HARLEY
motorcycle families, the Sport-
ster, the Dyna, the VRSC, the
Softail and the top-of-the-range
Touring series. Twelve models of
Harley-Davidson would be
launched in the country. The
company has established a sub-
sidiary to be located in Gurgaon,
near Delhi, and has begun the
process of seeking dealers.
The Managing Director of Harley
-Davidson India, Mr Anoop
Prakash, says this is set to de-
velop a whole new leisure riding
segment in India.
The bikes are priced in the range
of Rs 6.95 lakh and Rs 34.95 lakh
ex-showroom.
“Our target customers are in a
broad range from the average
enthusiast to the cruiser bike
fanatics. The wide price band
offers something for every one,”
says Mr Prakash.
While bookings begin in April,
Harley-Davidson will start deliv-
ering the motorcycles from June.
The bikes would be sold, ser-
viced and distributed directly by
Harley-Davidson. Initially, the
company would have five dealer-
ships in Delhi, Mumbai, Banga-
lore, Hyderabad and Chandigarh
with the aim of increasing the
dealerships to more than 20 in
the next five years.
The bikes will be imported as
completely built units (CBUs).
India hasn't set a limit on the
number of Harleys allowed in the
country. But there is a 60% tariff
on the imported bikes, plus an-
other 30% or so in various taxes.
The cruiser's popularity seems to
have far outweighed other con-
siderations like price. A niche
market for superbikes is quietly
picking up pace in India, with en-
thusiasts increasingly seeking
that tantalizing rush of adrena-
line, undeterred by the high
prices of these roaring mean ma-
chines. While the regular models
on offer have engine powers
ranging from 100 cc (Bajaj Boxer)
to 350 cc (Royal Enfield), the su-
perbikes on Indian roads start
from 1,000 cc (Yamaha’s YZF R1)
to 1,300 cc (Suzuki’s Hayabusa).
The positioning of superbikes is
for a limited segment as they
cost between Rs.125,000 and
Rs.5 million - some custom-made
machines can even go higher.
Says Sanjay Tripathi, head of
product planning and brand
management with Yamaha In-
dia:”The customers of super-
bikes already have two-three
cars. They are real bike lovers.
They can splurge as much money
on a bike as they can for a car.”
There is also an equally thriving
grey market of superbikes as im-
port duty is as high as 113 per-
cent. As a result, auto majors like
Bajaj and Hero Honda have not
gone above a 250 cc bike.
"Given the rapid development of
India's economy and physical
infrastructure, this is exactly the
right time to bring the world's
greatest motorcycles to one of
the world's largest motorcycling
nations," Harley-Davidson Motor
Company President and COO
Matthew Levatich said.
The Indian two-wheeler industry
is highly concentrated, with
three players-Hero Honda Mo-
tors Ltd (HHML), Bajaj Auto Ltd
(Bajaj Auto) and TVS Motor Com-
pany Ltd (TVS) - accounting for
over 80% of the industry sales.
Initial success with the bikes
came with the low CC models.
The demand of the Indian Cus-
tomers will better quality, ser-
vice and low maintenance.
People consider Harley an icon.
In India Enfield can pose as a
small substitute. The estimated
market for superbikes is at 600-
700 units a year
The company had about 400
people on their bikes through
boot camp programe to promote
the brand. Through this it is go-
ing to continue to get people do-
ing events all over the country.
And who better than a Harley
customer to explain what that
means
“Joining the Harley Owners
Group (or becoming a H.O.G.
member), is not so much about
buying a bike as embracing a
unique recreational lifestyle. No
other "product" can draw hun-
dreds and thousands of enthusi-
asts to weekend rallies staged
around the country” H.O.G
Saurabh Batra
Kapil Agarwal
Page 12 konsume November 2010
Pagkonsume November 2010
Turn over to the back cover
of the notebook you carry
around. What are the odds of
it posing an optimistic picture
of 8-10 year olds diligently
scribbling A-Z on black slates?
When ITC entered the pre-
dominantly unorganized Rs
5,000 crore stationery- writ-
ing industry in 2000, Navneet,
Kores and Ballarpur Industries
(Matrix) were the heavy-
weights in the sector. But in
less than a decade ITC has
taken over the branded sta-
tionery-writing segment. One
can always attribute this phe-
nomenal success to the com-
pany‟s inimitable distribution
network. A push-driven mar-
ket, stationery writing mar-
keting was always about en-
suring that your notebook is
the one that the customer
lays his/her hands first on.
Things have changed though,
and quite dramatically so.
Customers of all age-groups
from teeny-weeny not-teens-
yet to the
Doctors that
don‟t cure
patients
(PhDs), pre-
fer opting
for an ITC
notebook if there is one
available. What is it that in-
duced this loyalty? Quality?
Pricing? Distribution? Doesn‟t
look like it. “It‟s the one-
rupee that gets contributed
to the government‟s Sarva-
Shikhsa Abhiyaan,” points out
Ms Ajaya Bajpai, teacher at
Gokuldham High School in
Mumbai. On noticing the shift
from a wide array of branded
and unbranded homework
notebooks submitted two
years ago to a majority of
the students submitting their
homeworks in a Classmate,
Expressions or Saathi; she
casually mentioned the same
to her class. “It helps edu-
cate village kids,” was the
reason that came out with
unanimity.
Cause-marketing as it is
popularly known, refers to
marketing that involves a
symbiotic relationship be-
tween a profit making entity
and a cause taken up by an-
other entity which requires
some sort of assistance to
flourish. It typically involves
a business tying its marketing
strategy to the fundraising
needs of a charitable cause
for the benefit of both par-
ties.
What started off on an ex-
perimentation basis by Mar-
riott Corporation in 1975 and
Famous Amos Cookies in 1979
became a full-grown force to
reckon with, with the success
of the „Cause-related market-
ing campaign‟ initiated by
American Express in 1983 for
the Restoration of the Statue
of Liberty project. A penny
for each use of the American
Express card, and a dollar for
each new card issued was
given to the Statue of Liberty
renovation program. Over a
four-month period, $2 million
was raised for Lady Liberty.
As for American Express, the
number of new cardholders
grew by 45 percent, and card
usage increased by 28 per-
cent, thanks to the cam-
paign.
Founder of Causemarket-
ing.ca and author of Cause
Marketing for Nonprofits,
Jocelyne Daw suggest that
one must keep the 7 C‟s
framework in mind while
zeroing on a cause-marketing
Cause Marketing
A Chance to give back
Page 14 konsume November 2010
Cause Marketing
A Chance to give back
campaign. The seven C‟s in-
clude having a common
Cause, Collaboration for the
cause, Combining assets,
Creating value, efficient exe-
Cution, Communication and
finally ensuring sustainable
and desired Community and
Corporate outcomes.
The 7Cs of Cause-Marketing
Framework can be seen in
action as follows:
Achieve cause goals and
mission
Community and corporate
outcomes
Implement cause program
Communicate
Execute
Build case marketing pro-
gram
Create value
Combine assets
Collaborate
Create cause-marketing ori-
entation
Cause
Source: causemarketing.ca
As the global markets slowly
shrug off the lull caused by
the recession, marketing ex-
perts believe that in a gloomy
economy wherein consumers
are still wary and looking to
curb their spending, they will
prefer to spend their money
on brands that take responsi-
bility and help improve the
world. Probably this was the
wakeup call that alarmed the
marketers across the globe
and gave a vital push to cause
marketing.
Pepsi, which marketed its
products in the US using the
„Refresh everything‟ mantra
all of 2009, wherein it asked
consumers to talk about ways
to change their world, is go-
ing a step further this year.
The company‟s „Pepsi Re-
fresh Project‟ will be used to
market all its soft drinks and
will have a heavy social me-
dia presence as all its con-
sumers will list their social
projects online and vote on
the winners. The company
has pledged to fund projects
worth at least $20 million
during the year for people to
„refresh‟ their communities.
Rival Coca-Cola is not far be-
hind. The company will be
sending three people — also
chosen by voters online — to
206 countries as part of its
„Open Happiness‟ campaign
for its Coca-Cola brand.
These three winners will
meet with fans, post stories
and pictures from all the
countries online, and find out
what‟s needed to make peo-
ple happy in each of these
countries.
In India too Coca Cola‟s tied
up with Indian Oil and Cancer
Patients Association to pro-
vide its kiosks and equip-
ment, which are located at
oil stations and are run by
cancer patients.
Natural calamities like earth-
quakes and floods are the
perfect opportunity for com-
panies to venture into cause
Page 15 konsume November 2010
Cause Marketing
A Chance to give back
marketing and also generate
a large-scale positive social
impact and corporate re-
sponse. When the Tsunami
struck southern parts of India
in 2003, P&G donated a total
of Rs 32 lakh towards reha-
bilitation efforts via the
Prime Minister's Relief Fund.
Procter & Gamble, USA, also
contributed through funds
and the distribution of its
„PUR‟ water purifying sachet
products making purified wa-
ter available to the victims.
It seems Tatas have taken the
cue from this and are devel-
oping „Swach‟, ordinary
man‟s water purifier provid-
ing clean drinking water to
large percentage of Indian
population which is unable to
afford the likes of Eureka
Forbes.
Procter & Gamble Hygiene
was also the first company to
launch the eye restoration
corporate project - Project
Drishti -- in association with
the National Association for
the Blind (NAB). It restored
the sight of over 250 blind
girls all over the country
through corneal transplant
operations. The company‟s
product „Whisper‟ provided
an initial funding of Rs 2.5
crore for the project with an
additional Re 1 contribution
for every pack sold. The
product registerd 32% growth
despite being higher-priced.
The company in association
Child Rights and You (CRY)
and Sony Entertainment Tele-
vision has also been promot-
ing primary education. Prod-
ucts like Tide, Ariel, Pantene,
Head & Shoulders, Rejoice,
Vicks VapoRub, Whisper, Gil-
lette Mach 3 Turbo or Pam-
pers commit Re 1 of every
sale irrespective of profits to
primary education-focussed
programmes.
If developed correctly a stra-
tegic cause marketing pro-
gram will definitely induce
the modern consumer to sat-
isfy his/her yearnings to ex-
press the values believed and
positively impact societal
needs while also procuring
value from the product.
However, there is the danger
of consumers becoming cyni-
cal of cause-marketing cam-
paigns if the fit between
partners is not done well. For
instance, there will be a dis-
connect, if a woman‟s cloth-
ing retailer supports an anti
smoking campaign. It will
make more sense for the
company to promote, raise
funds for a women-related
cause.
A point in case is HUL‟s Fair &
Lovely Foundation offers the
Project Saraswati scholar-
ships for graduate and post-
graduate studies to young
women facing financial con-
straints.
Cynics still doubt the real im-
pact created by these pro-
grammes. But like Ms Mary
Kay Ash, one of the most out-
standing businesswomen of
the twentieth century who
worked tirelessly to create
business ownership in more
than half a million women,
once put it ‘Aerodynamically,
the bumble bee shouldn’t be
able to fly, but then the
bumble bee doesn’t know it,
so it goes on flying anyway’
If you keep flapping long
enough, you are bound to
start flying some-day, the
bumblebee too did!
At the end of the day, we all
want our jobs and companies
to mean more than selling
credit cards and biscuits and
toothpastes and shampoos
and cold drinks successfully.
Business can‟t be just about
doing well and selling well.
There has to be more to it. It
has to be about doing good.
Cause marketing is the way!
Rashmi Gupta
Chirantan Shah
Sumeet Gupta
The Marketing Club @ IIM Kozhikode
Please send in your comments/feedback at
mpower@iimk.ac.in
Or give us a buzz ……..
Chirantan shah +91-9539011960
Dhruvan Barar +91-9539011630
Rashmi Gupta +91-9539011654
Santosh Hegde +91-9946639416