Buzz - The Markazine, Sept-Oct 2011

SEP-OCT ’11Vol. III Issue lI

our recharge partner

e have been fortunate to witness some

of the most brilliant works of genius Waround us. We have seen intellect

amalgamate with passion to bring to the world

some sparkling moments that would stay with the

world forever. In the past few days, it was

unfortunate to lose few of the pioneers who have

not only excelled but paved the path for future

generations to walk on. Steve Jobs, Mansoor Ali

Khan Pataudi, Jagjit Singh, Dennis Ritchie are

people who arrived on the minds of people, but

never left. Their ideas and their talent has outlived

their physical existence here. What is the stuff

legends are made of ? What is it that made few

people so important that the entire world mourns

for them? We've so many people who are really

good at what they do, then how come they dont

become legends?

Legends have a vision that not many around them

can share. They have a strong holistic perspective

which makes their learning about their area of

expertise unblemished. Their broad perspective is

exactly what Theodore Levitt emphasized in his

iconic work "Marketing Myopia". Thus, here at Buzz

we have tried to capture the same essence by

emphasizing on learning about the trendz that have

made people sit back and take notice, we have

tried to answer the eternal debate about Sales vs

marketing. The cover story captures the rise from

nowhere of the Angry Birds to take the world by

storm.

Neelotpal Shukla

Nishchai Nevrekar

Gaurav Modi

Rachita Behl

Kushal Mehta

Krisnakant Jonalgadda

Tushar Kumar

Nanadini Kapur

Pawas Soni

Naresh Chandak

Team

2| Buzz - The Markazine SEP-OCT 2011 3| Buzz - The Markazine | SEP-OCT 2011

Ed Speak

The Eds

Kushal Mehta

Krisnakant Jonnalgadda

Designed by

Nishchai Nevrekar

We wish this concoction of articles and

more importantly ideas will keep you

engaged and enrich you. Happy Reading

and have a great festive season.

ContentsTrendz Sure Deodorants- Would Rexona's failure haunt? FMS, New Delhi

Cover Story Angry Birds

Premiere Wagh Bakri Tea r model? Welingkar Institute of Management

Gyan The Political Brand Icons: Charisma or just good PR? IIFT , New Delhi

Sales vs Marketing- The Fight and the Truce IIM Indore

FeaturePrint Ads Churn- Unleash the maze

Customer Loyalty Programs: Enough for Customer retention? IIM-Lucknow

Lounge: Can Tea emulate the coffee ba

e have been fortunate to witness some

of the most brilliant works of genius Waround us. We have seen intellect

amalgamate with passion to bring to the world

some sparkling moments that would stay with the

world forever. In the past few days, it was

unfortunate to lose few of the pioneers who have

not only excelled but paved the path for future

generations to walk on. Steve Jobs, Mansoor Ali

Khan Pataudi, Jagjit Singh, Dennis Ritchie are

people who arrived on the minds of people, but

never left. Their ideas and their talent has outlived

their physical existence here. What is the stuff

legends are made of ? What is it that made few

people so important that the entire world mourns

for them? We've so many people who are really

good at what they do, then how come they dont

become legends?

Legends have a vision that not many around them

can share. They have a strong holistic perspective

which makes their learning about their area of

expertise unblemished. Their broad perspective is

exactly what Theodore Levitt emphasized in his

iconic work "Marketing Myopia". Thus, here at Buzz

we have tried to capture the same essence by

emphasizing on learning about the trendz that have

made people sit back and take notice, we have

tried to answer the eternal debate about Sales vs

marketing. The cover story captures the rise from

nowhere of the Angry Birds to take the world by

storm.

Neelotpal Shukla

Nishchai Nevrekar

Gaurav Modi

Rachita Behl

Kushal Mehta

Krisnakant Jonalgadda

Tushar Kumar

Nanadini Kapur

Pawas Soni

Naresh Chandak

Team


Ed Speak

The Eds

Kushal Mehta

Krisnakant Jonnalgadda

Designed by

Nishchai Nevrekar

We wish this concoction of articles and

more importantly ideas will keep you

engaged and enrich you. Happy Reading

and have a great festive season.

ContentsTrendz Sure Deodorants- Would Rexona's failure haunt? FMS, New Delhi

Cover Story Angry Birds

Premiere Wagh Bakri Tea r model? Welingkar Institute of Management

Gyan The Political Brand Icons: Charisma or just good PR? IIFT , New Delhi

Sales vs Marketing- The Fight and the Truce IIM Indore

FeaturePrint Ads Churn- Unleash the maze

Customer Loyalty Programs: Enough for Customer retention? IIM-Lucknow

Lounge: Can Tea emulate the coffee ba

the one with bad odour.

Re- launch: Rexona showed unique product

benefit which was, 'Effective all day, unlike talc'.

This gave one the feeling of self-confidence

Present Scenario:

Failure of Rexona: After Rexona soap

was aligned with Hamam, another soap offered

by HUL, the tussle of the perception of Brand

Rexona between being a soap and a deodorant

Ishita Sharma Sure Deodorants: Would Rexona's failure

haunt?Pursuing a dual Major in finance

and marketing (MBA) at Faculty of

Management studies, Delhi.Ishita holds a B.Tech degree from

NIT Kurkukshetra. Eloquent,

Intelligent and Creative she enjoys

reading books, watching Television

and loves cooking.

Pursuing a Major in Marketing

(MBA) at Faculty of Management

studies, Delhi.Deepi holds a B.Tech degree from

NIT Allahabad and comes with a

p r i o r w o r k - e x a t W i p r o

Technologies.Hardworking,Determined and

Creative she enjoys reading books

and dancing.

Past Scenario:When HUL decided to foray into India,Rexona was not

the first deodorant in the market. Players like Copper

and Fa were present, who relied on the assumption

that the consumer differentiated between a

deodorant and a perfume. This is where HUL came in

and created a niche market for deodorants, which

kicked-off well and at the same time generated

awareness about the concept of a deodorant. Also,

they wanted the communication to be sober as it dealt

with the application of a product upon private parts in

a conservative Indian mindset. To tap this, they chose

a soap which was already popular in the country-

Rexona.

Promotion: Rexona was test launched in Tamil

Nadu in 1995 in the form of a push-up stick, since

aerosols were perceived to be expensive.

However, the offering was not seen as value-for-

money.

Indian Mindset: Although consumers were

aware of the concept of bad odour, they did not

perceive it as a problem. Hence HUL's sales did not go

up. So, it came up with new advertisements which

showed how bad-odour could make people lose social

acceptance. This resulted in the desired impact and

everybody suddenly became keen to not be 'that guy',

Rexona was test launched in Tamil Nadu in 1995 in the form of a push-up stick, since aerosols were perceived to be expensive.

affected its sales and it stooped down to 5%

market share, inspite of new product launches

of the anti-perspirant and the 24hr intensive

care variants.

Arrival of Sure: The overall deodorant

market has grown by about 40 per cent,

amounting to around 900 crores in the past

five years. It is further expected to grow at a

rate of 20-25 per cent. We now have different

deodorants to suit various profiles of men &

women. Men sweat more and so, need a

strong and effective deodorant. Also, they are

Deepi Garbyal

5| Buzz - The Markazine | SEP-OCT 20114| Buzz - The Markazine SEP-OCT 2011

Trendz

the one with bad odour.

Re- launch: Rexona showed unique product

benefit which was, 'Effective all day, unlike talc'.

This gave one the feeling of self-confidence

Present Scenario:

Failure of Rexona: After Rexona soap

was aligned with Hamam, another soap offered

by HUL, the tussle of the perception of Brand

Rexona between being a soap and a deodorant

Ishita Sharma Sure Deodorants: Would Rexona's failure

haunt?Pursuing a dual Major in finance

and marketing (MBA) at Faculty of

Management studies, Delhi.Ishita holds a B.Tech degree from

NIT Kurkukshetra. Eloquent,

Intelligent and Creative she enjoys

reading books, watching Television

and loves cooking.

Pursuing a Major in Marketing

(MBA) at Faculty of Management

studies, Delhi.Deepi holds a B.Tech degree from

NIT Allahabad and comes with a

p r i o r w o r k - e x a t W i p r o

Technologies.Hardworking,Determined and

Creative she enjoys reading books

and dancing.

Past Scenario:When HUL decided to foray into India,Rexona was not

the first deodorant in the market. Players like Copper

and Fa were present, who relied on the assumption

that the consumer differentiated between a

deodorant and a perfume. This is where HUL came in

and created a niche market for deodorants, which

kicked-off well and at the same time generated

awareness about the concept of a deodorant. Also,

they wanted the communication to be sober as it dealt

with the application of a product upon private parts in

a conservative Indian mindset. To tap this, they chose

a soap which was already popular in the country-

Rexona.

Promotion: Rexona was test launched in Tamil

Nadu in 1995 in the form of a push-up stick, since

aerosols were perceived to be expensive.

However, the offering was not seen as value-for-

money.

Indian Mindset: Although consumers were

aware of the concept of bad odour, they did not

perceive it as a problem. Hence HUL's sales did not go

up. So, it came up with new advertisements which

showed how bad-odour could make people lose social

acceptance. This resulted in the desired impact and

everybody suddenly became keen to not be 'that guy',

Rexona was test launched in Tamil Nadu in 1995 in the form of a push-up stick, since aerosols were perceived to be expensive.

affected its sales and it stooped down to 5%

market share, inspite of new product launches

of the anti-perspirant and the 24hr intensive

care variants.

Arrival of Sure: The overall deodorant

market has grown by about 40 per cent,

amounting to around 900 crores in the past

five years. It is further expected to grow at a

rate of 20-25 per cent. We now have different

deodorants to suit various profiles of men &

women. Men sweat more and so, need a

strong and effective deodorant. Also, they are

Deepi Garbyal


Trendz

more often driven by pricing than by brand.

Ladies prefer a good fragrance and also tend to

choose a deodorant qhcih takes care of the

sensitive nature of skin.

HUL launched “Sure” in mid 2010, bringing the

anti-perspirant deodorant category to India. It

was intended to cater to the mass market

segment. Interestingly,

It won't Let You Down'

Sure carries the same logo - the 'Tick mark' and

the same tagline 'It won't Let You Down', of

Rexona.

Comparison and Conclusion:

The Sure-Rexona story isn't the first instance of

HUL trying to sell an old brand under a new brand's

name, the other example being 'Clinic Plus' and

'Clear.

'However, the difference in the Sure-Rexona and

Clinic Plus-Clear cases is the severity of baggage.

!While Rexona has been losing shares, the

brand Clinic Plus thrives as India's most

preferred shampoo. This gives Sure a better

chance than Clear to carve a niche for itself.

!The swoosh mark and 'Won't let you down'

tagline of Rexona may not possess so great a

threat so as to weigh down Sure but Clear

definitely banks heavily on Clinic.

The other differentiating factors that will help

Sure are:

Packaging: Apart from the 'Swoosh' sign,

Sure's packaging is different as compared to

Rexona's. Sure also claims to be the world's best

anti-perspirant, which gives it a more

international feel than the one Rexona

possessed.

·

Brand promotion: HUL has spent less on

the promotion of Rexona over the years. The last

noticeable campaign was the 'Who will you meet

next' with Preity Zinta, in February 2007. But with

Sure, it roped in Asin and Akshay Kumar (in a new

outdoor campaign in Delhi) as the brand

ambassadors. This move has added to the

promotional activity, thus helping Sure create its

own brand position.

·Rituals: Through educating the consumer

about the anti-perspirant category (such an

activity being absent in Rexona) HUL is now trying

to get associated with a brand ritual for an

effective brand recall.

International Brand: While Rexona

suffered from association with Rexona Soap,

which affected its image in the market, Sure

comes free from these bonds and can actually

capitalize on the fact that the brand

Sure/Rexona does very well in international

markets like UK and USA. One can learn the

same from the graphics given in the article.

It seems that Rexona, a dying phoenix, has risen

from the ashes. Only time will tell if Sure will rise

up to the challenge of a highly competitive

market. But for now,we can say that it has been

given a fair, fighting chance.

It seems that Rexona, a dying phoenix, has risen from the ashes. Only time will tell if Sure will rise up to the challenge of a highly competitive market. But for now,we can say that it has been given a fair, fighting chance.


Trendz

more often driven by pricing than by brand.

Ladies prefer a good fragrance and also tend to

choose a deodorant qhcih takes care of the

sensitive nature of skin.

HUL launched “Sure” in mid 2010, bringing the

anti-perspirant deodorant category to India. It

was intended to cater to the mass market

segment. Interestingly,

It won't Let You Down'

Sure carries the same logo - the 'Tick mark' and

the same tagline 'It won't Let You Down', of

Rexona.

Comparison and Conclusion:

The Sure-Rexona story isn't the first instance of

HUL trying to sell an old brand under a new brand's

name, the other example being 'Clinic Plus' and

'Clear.

'However, the difference in the Sure-Rexona and

Clinic Plus-Clear cases is the severity of baggage.

!While Rexona has been losing shares, the

brand Clinic Plus thrives as India's most

preferred shampoo. This gives Sure a better

chance than Clear to carve a niche for itself.

!The swoosh mark and 'Won't let you down'

tagline of Rexona may not possess so great a

threat so as to weigh down Sure but Clear

definitely banks heavily on Clinic.

The other differentiating factors that will help

Sure are:

Packaging: Apart from the 'Swoosh' sign,

Sure's packaging is different as compared to

Rexona's. Sure also claims to be the world's best

anti-perspirant, which gives it a more

international feel than the one Rexona

possessed.

·

Brand promotion: HUL has spent less on

the promotion of Rexona over the years. The last

noticeable campaign was the 'Who will you meet

next' with Preity Zinta, in February 2007. But with

Sure, it roped in Asin and Akshay Kumar (in a new

outdoor campaign in Delhi) as the brand

ambassadors. This move has added to the

promotional activity, thus helping Sure create its

own brand position.

·Rituals: Through educating the consumer

about the anti-perspirant category (such an

activity being absent in Rexona) HUL is now trying

to get associated with a brand ritual for an

effective brand recall.

International Brand: While Rexona

suffered from association with Rexona Soap,

which affected its image in the market, Sure

comes free from these bonds and can actually

capitalize on the fact that the brand

Sure/Rexona does very well in international

markets like UK and USA. One can learn the

same from the graphics given in the article.

It seems that Rexona, a dying phoenix, has risen

from the ashes. Only time will tell if Sure will rise

up to the challenge of a highly competitive

market. But for now,we can say that it has been

given a fair, fighting chance.

It seems that Rexona, a dying phoenix, has risen from the ashes. Only time will tell if Sure will rise up to the challenge of a highly competitive market. But for now,we can say that it has been given a fair, fighting chance.


Trendz

the' Mighty Eagle'. Today the game boasts of being

played over 200 million minutes per day and has

more than 350 million downloads till date!

Success strategy:

The firm believes in the following steps to success:

1) Create a great app

2) Get the message out

Marketing strategy:

Ever since the phenomenon of Angry Birds

appeared on the surface of the planet, all one could

wonder is how a seemingly

ordinary game earned a whopping

revenue of $ 1.2 billion!

The key, as from the

horse 's mouth, lies in their

marketi ng strategies.

The experts at Rovio were well aware of the fact that

it was 2009, a year which had just followed

recession. No matter how wonderful the game was,

it needed an audience. In other words, it had to

market itself to achieve the coveted title of 'Number

Angry Birds - Breaking new

barriersHow often does history repeat itself, with the help of a

slingshot, so as to shoot into success? Not very often, I

guess. But then history does get created when one

Finnish designer's feetless birds decide to take on

pigs! And that is what transforms into 'Angry Birds'.

Two phases can be carved out of the on-going Angry

Birds' fervour: Pre and Post-success. In other words -

What went into it and what came out of it?

Background:

Jaako Iisaalo, the brain behind Angry Birds' had

considered it to be just another day when his wife was

out and he sat at his desk, doodling rough sketches of

a different breeds of round birds. Rovio Mobile, his

employer firm, was short of funds, and the video game

designers were short of time and game proposals.

Launched in December 2009, the game turned out to

be fairly close to an overnight success. It was as if the

strange concept of pigs in the form of birds' enemies

instantly struck a chord with the users, who seemed to

get a chance to take out their wrath on the pigs due to

the then-on-going epidemic of swine flu. Initially

offered in a single version with three levels, Angry

Birds hardly took 11 months to upgrade itself. Since

then, it seemed to have never looked back. It recently

introduced another fascinating feature to the game –

One Game. Number One, longer than anyone

else'.

What was

launched

as a simple

game for iPhone and went on to enter a cascade

of events –

· Number one in Finland

· Number one in Sweden

· Number one in UK

· Number one in US

Soon, it caught the attention of smartphones,

who wanted to follow suit - that of earning huge

revenues. The application found entry first into

Android and then into Mac, and not to mention,

Apple's AppStore is the biggest market for Angry

Birds till date

Cover Story


From NjM’s Cradle

Salil Pawar

Sudeep Singh

Aarti Khatwani

the' Mighty Eagle'. Today the game boasts of being

played over 200 million minutes per day and has

more than 350 million downloads till date!

Success strategy:

The firm believes in the following steps to success:

1) Create a great app

2) Get the message out

Marketing strategy:

Ever since the phenomenon of Angry Birds

appeared on the surface of the planet, all one could

wonder is how a seemingly

ordinary game earned a whopping

revenue of $ 1.2 billion!

The key, as from the

horse 's mouth, lies in their

marketi ng strategies.

The experts at Rovio were well aware of the fact that

it was 2009, a year which had just followed

recession. No matter how wonderful the game was,

it needed an audience. In other words, it had to

market itself to achieve the coveted title of 'Number

Angry Birds - Breaking new

barriersHow often does history repeat itself, with the help of a

slingshot, so as to shoot into success? Not very often, I

guess. But then history does get created when one

Finnish designer's feetless birds decide to take on

pigs! And that is what transforms into 'Angry Birds'.

Two phases can be carved out of the on-going Angry

Birds' fervour: Pre and Post-success. In other words -

What went into it and what came out of it?

Background:

Jaako Iisaalo, the brain behind Angry Birds' had

considered it to be just another day when his wife was

out and he sat at his desk, doodling rough sketches of

a different breeds of round birds. Rovio Mobile, his

employer firm, was short of funds, and the video game

designers were short of time and game proposals.

Launched in December 2009, the game turned out to

be fairly close to an overnight success. It was as if the

strange concept of pigs in the form of birds' enemies

instantly struck a chord with the users, who seemed to

get a chance to take out their wrath on the pigs due to

the then-on-going epidemic of swine flu. Initially

offered in a single version with three levels, Angry

Birds hardly took 11 months to upgrade itself. Since

then, it seemed to have never looked back. It recently

introduced another fascinating feature to the game –

One Game. Number One, longer than anyone

else'.

What was

launched

as a simple

game for iPhone and went on to enter a cascade

of events –

· Number one in Finland

· Number one in Sweden

· Number one in UK

· Number one in US

Soon, it caught the attention of smartphones,

who wanted to follow suit - that of earning huge

revenues. The application found entry first into

Android and then into Mac, and not to mention,

Apple's AppStore is the biggest market for Angry

Birds till date

Cover Story


From NjM’s Cradle

Salil Pawar

Sudeep Singh

Aarti Khatwani

.

While the world was engrossed in the addictive

essence of Angry Birds, Rovio had already

planned what lay ahead. The release of the

'Angry Birds Plush' toys was their first move.

'Google Doodles' don't take the users by this big a

surprise, as did the tie up of Angry Birds and

Google Chrome! A red box fanned by a red, round

bird, invitingly asked people to download the

application. This was emulated by a tie up with

GetJar, which gave the firm a start of about 15

million downloads!

Social Networking being the need of the hour,

Rovio did not take too long to cash on Facebook

and Twitter, where its fan-following in thriving

today.Much has already been done and much

more is yet to come. There are reports about an

Angry Birds film in the process.

A tie-up with Starbucks has been officially

declared by Rovio, to slowly turn their virtual

world into the physical world of stuffed toys,

books etc. This will help tremendously in

increasing the game's popularity as well as

generate awareness in areas which are still to be

tapped.

And the ball doesn't stop rolling here. When

asked in an interview about their future plans,

Peter Verstabacka, CEO, Rovio, informed that

though Angry Birds has 100% brand recall in the

USA, the recall is as low as 30% in China, which is

a huge potential market. Hence the next big step

would be setting up Rovio's first overseas market

– that in China.

The latest in news is the marketing move by

Finnair to 'fly' on Angry Birds' popularity to create

awareness about its new air-route to Singapore.

The Debate:

Having said it all, there still exists scepticism as

far as the era of this game is concerned.

Not all feel that Angry Birds is like the dawn of

unending name and fame. Barring the fact that

this application has stolen endless productive

hours out of the world's economy, the game has

started facing a new flak-Boredom! Users are

complaining of the game turning into another

boring element.

Also there are complaints regarding discrepancies

in the game structure. The game seems to offer

myriad levels with a lack of hierarchical difficulty

levels, and an easy level sandwiched between

difficult and moderately difficult ones. This should

be a point of concern for the firm who claims to

beat the fame of Disney one day.

While the debate is still on over the pros and cons

of Angry Birds, let us be the silent spectator,

allowing time to reveal whether the stage has been

set to host the biggest trend ever or the soon-to-die

'soda pop fizz' effect.

Angry Birds now averages over 1 Million

downloads per day!

Over a MILLION Angry Birds plus toy sales

happen per month!

Over 1 MILLION Angry Birds t-shirts sold

every month!

Atlantic's Alexis Madrigal estimates that if 5% of all hours spent playing Angry Birds occurs while people are at work, that could translate to $1.5 billion in lost productivity. The assumption is based on statistics that say Angry Birds is played about 868 million hours per year, and a fairly arbitrary average wage for workers of $35 per hour.

Rovio, the company behind Angry Birds is now

valued at over $ 1 Billion.

Cover Story

12| Buzz - The Markazine |SEP-OCT 2011 13| Buzz - The Markazine | SEP-OCT 2011

.

While the world was engrossed in the addictive

essence of Angry Birds, Rovio had already

planned what lay ahead. The release of the

'Angry Birds Plush' toys was their first move.

'Google Doodles' don't take the users by this big a

surprise, as did the tie up of Angry Birds and

Google Chrome! A red box fanned by a red, round

bird, invitingly asked people to download the

application. This was emulated by a tie up with

GetJar, which gave the firm a start of about 15

million downloads!

Social Networking being the need of the hour,

Rovio did not take too long to cash on Facebook

and Twitter, where its fan-following in thriving

today.Much has already been done and much

more is yet to come. There are reports about an

Angry Birds film in the process.

A tie-up with Starbucks has been officially

declared by Rovio, to slowly turn their virtual

world into the physical world of stuffed toys,

books etc. This will help tremendously in

increasing the game's popularity as well as

generate awareness in areas which are still to be

tapped.

And the ball doesn't stop rolling here. When

asked in an interview about their future plans,

Peter Verstabacka, CEO, Rovio, informed that

though Angry Birds has 100% brand recall in the

USA, the recall is as low as 30% in China, which is

a huge potential market. Hence the next big step

would be setting up Rovio's first overseas market

– that in China.

The latest in news is the marketing move by

Finnair to 'fly' on Angry Birds' popularity to create

awareness about its new air-route to Singapore.

The Debate:

Having said it all, there still exists scepticism as

far as the era of this game is concerned.

Not all feel that Angry Birds is like the dawn of

unending name and fame. Barring the fact that

this application has stolen endless productive

hours out of the world's economy, the game has

started facing a new flak-Boredom! Users are

complaining of the game turning into another

boring element.

Also there are complaints regarding discrepancies

in the game structure. The game seems to offer

myriad levels with a lack of hierarchical difficulty

levels, and an easy level sandwiched between

difficult and moderately difficult ones. This should

be a point of concern for the firm who claims to

beat the fame of Disney one day.

While the debate is still on over the pros and cons

of Angry Birds, let us be the silent spectator,

allowing time to reveal whether the stage has been

set to host the biggest trend ever or the soon-to-die

'soda pop fizz' effect.

Angry Birds now averages over 1 Million

downloads per day!

Over a MILLION Angry Birds plus toy sales

happen per month!

Over 1 MILLION Angry Birds t-shirts sold

every month!

Atlantic's Alexis Madrigal estimates that if 5% of all hours spent playing Angry Birds occurs while people are at work, that could translate to $1.5 billion in lost productivity. The assumption is based on statistics that say Angry Birds is played about 868 million hours per year, and a fairly arbitrary average wage for workers of $35 per hour.

Rovio, the company behind Angry Birds is now

valued at over $ 1 Billion.

Cover Story


“In all things of nature, there is something

marvellous” – Aristotle

Tea and coffee are two such things from nature,

both marvellous in their own way but there is

always a ' Tea V/s Coffee', and people expect a

clear winner to emerge amongst them.

Once again the battle lines have been drawn, but

this time in the arena of Business, holding the tag

of a challenger is Gujarat Tea Processors and

Packers Ltd (GTPPL) (Tea) trying to usurp the

‘Champions’ - The Baristas, The Cafe Coffee

Days, The Costa Coffees, etc. to name a few

(Coffee).

GTPPL popularly known through its Wagh Bakri

(Exhibit 1) Tea brand, had forayed in to the retail

category with its Wagh Bakri Tea Lounge in

Mumbai in 2008. It was a first of its kind concept,

where the consumer got to taste their tea leaves

before purchasing, in a five-star ambience.

Putting it in the words of the Chairman of the

group,

“We are confident that their extensive

experience will be of great value to us. This

is the first tea lounge in Mumbai city and we

plan to roll out a number of outlets in other

parts of the country. I am confident that the

launch of this new format will mark a

significant development in the evolution of

the Wagh Bakri brand" – Piyush Desai,

Group Chairman 2008 Press Release

Fast forwarding to 2011, something has

terribly gone wrong. It has been four years and

the company hasn't opened up any other Tea

lounge apart from the one situated in Mumbai

(Vile Parle).

What went wrong? You may ask, if statistics

are to go by, then Demand for Tea in the

coming years will be on an uptrend (Indian

Stats) (Exhibit 2) Tea consumption in India is

miles ahead when compared to that of coffee.

Irrespective of having conducive factors, the

Tea Lounge model doesn't seem to have

taken off.

Although the company pioneered something

new in this overly saturated Café / Coffee bar

market, it seems to be going ahead on the

path to PARC syndrome (Exhibit 3). What the

company is oblivious of, is the fact that it is

sitting on a potential gold mine!

Let's look at how we can approach the Tea bar

Prabhdeep Seth

is currently pursuing his MBA from

Welingkar Institute of Managment,

Bengaluru. He has done his

graduation in the field of business

management. He has worked at

Citigroup Inc, has been living in Vile

Parle, Mumbai and was fascinated by

the concept of a Tea lounge which

prompted him to write about it.

Authors

“The Wagh Bakri Tea Lounge

”

was a first of its kind concept, where the consumer got to taste their tea leaves before purchasing, in a five-star ambience.

Wagh Bakri Tea Lounge

A Novel Concept

Can Tea emulate the coffee bar model?

Premiere


Shalin Kumar


Welingkar Institute of Management,

He has graduated in business

management, from Symbiosis

Center for Management Studies. He

has worked at JP Morgan Chase and

plans to specialize in Finance.

“In all things of nature, there is something

marvellous” – Aristotle

Tea and coffee are two such things from nature,

both marvellous in their own way but there is

always a ' Tea V/s Coffee', and people expect a

clear winner to emerge amongst them.

Once again the battle lines have been drawn, but

this time in the arena of Business, holding the tag

of a challenger is Gujarat Tea Processors and

Packers Ltd (GTPPL) (Tea) trying to usurp the

‘Champions’ - The Baristas, The Cafe Coffee

Days, The Costa Coffees, etc. to name a few

(Coffee).

GTPPL popularly known through its Wagh Bakri

(Exhibit 1) Tea brand, had forayed in to the retail

category with its Wagh Bakri Tea Lounge in

Mumbai in 2008. It was a first of its kind concept,

where the consumer got to taste their tea leaves

before purchasing, in a five-star ambience.

Putting it in the words of the Chairman of the

group,

“We are confident that their extensive

experience will be of great value to us. This

is the first tea lounge in Mumbai city and we

plan to roll out a number of outlets in other

parts of the country. I am confident that the

launch of this new format will mark a

significant development in the evolution of

the Wagh Bakri brand" – Piyush Desai,

Group Chairman 2008 Press Release

Fast forwarding to 2011, something has

terribly gone wrong. It has been four years and

the company hasn't opened up any other Tea

lounge apart from the one situated in Mumbai

(Vile Parle).

What went wrong? You may ask, if statistics

are to go by, then Demand for Tea in the

coming years will be on an uptrend (Indian

Stats) (Exhibit 2) Tea consumption in India is

miles ahead when compared to that of coffee.

Irrespective of having conducive factors, the

Tea Lounge model doesn't seem to have

taken off.

Although the company pioneered something

new in this overly saturated Café / Coffee bar

market, it seems to be going ahead on the

path to PARC syndrome (Exhibit 3). What the

company is oblivious of, is the fact that it is

sitting on a potential gold mine!

Let's look at how we can approach the Tea bar

Prabhdeep Seth


Welingkar Institute of Managment,

Bengaluru. He has done his

graduation in the field of business

management. He has worked at

Citigroup Inc, has been living in Vile

Parle, Mumbai and was fascinated by

the concept of a Tea lounge which

prompted him to write about it.

Authors

“The Wagh Bakri Tea Lounge

”

was a first of its kind concept, where the consumer got to taste their tea leaves before purchasing, in a five-star ambience.

Wagh Bakri Tea Lounge

A Novel Concept

Can Tea emulate the coffee bar model?

Premiere


Shalin Kumar


Welingkar Institute of Management,

He has graduated in business

management, from Symbiosis

Center for Management Studies. He

has worked at JP Morgan Chase and

plans to specialize in Finance.

model to make it a success.

Firstly looking at something simplistic, like

the processing of tea leaves, the same

cannot be replicated in a Tea Bar model

vis–a-vis a Cafe model, where one enjoys

a sensory appeal of smell and sight

(process of coffee beans being crushed

and fresh coffee being made). Tea cannot

brand itself on the freshness factor

although it has a refreshing element

associated with it.

Secondly, Tea drinking has been a practice

that most of the households in India follow,

so drinking tea becomes a casual activity

around which one has failed to create an

occasion.

Apart from home, the real challenge faced

by this business model is from a simple

Chaiwala (Tapri) outside most offices /

colleges that impedes people from scaling

up on their options. Again the casualness

attached to tea gets highlighted.

So in order to break through these barriers, we

feel that the Tea Bar should be positioned in the

following way “Chai and Rejevunation” OR

“Re-Chai yourself”.

Tea drinking needs to be pushed as a healthy

beverage (Exhibit 4) to the people between the

age group of 25 to 35, the working class that

today is more health conscious. Not just that,

the Tea bar needs to build itself as a leisure

destination, a place where one can be his or

her own self. In this fast paced world of

technology, where face to face communication

has been replaced with Facebook, Tea bar can

position itself as a bridge that rekindles

togetherness and face to face communication.

As a product the company has the best

product in the market, with 32 variations of tea

being offered, a single store disadvantage can

be used as an opportunity to build exclusivity

around the brand. The next step to be taken is

to work on the aesthetics of the store, “People

do not eat with their mouths but with their

eyes” is a mantra that needs to be kept in

mind. A periphery of other services can be

created around Tea cafe, like trivia nights,

musical entertainment, book clubs (informal)

can be engaged, wi-fi facilities etc.

The question to be asked at the moment is not

about the success or the failure of the model,

but about the willingness to nurture a new

market. The Indian consumer was thought to

have a discerning palette, a myth that was

shattered with the advent of the coffee bar

model. Tea has an opportunity to be a White

Knight for its consumers, and give them a

chance to acquire taste towards its richness, a

commodity for which wars have been fought

and colonies being created. The road has just

started!

14| Buzz - The Markazine | SEP-OCT 2011 15| Buzz - The Markazine | SEP-OCT 2011

“

”

In this fast paced world of technology, where face to face communication has been replaced with Facebook, Tea bar can position itself as a bridge that rekindles togetherness and face to face communication.

Premiere

model to make it a success.

Firstly looking at something simplistic, like

the processing of tea leaves, the same

cannot be replicated in a Tea Bar model

vis–a-vis a Cafe model, where one enjoys

a sensory appeal of smell and sight

(process of coffee beans being crushed

and fresh coffee being made). Tea cannot

brand itself on the freshness factor

although it has a refreshing element

associated with it.

Secondly, Tea drinking has been a practice

that most of the households in India follow,

so drinking tea becomes a casual activity

around which one has failed to create an

occasion.

Apart from home, the real challenge faced

by this business model is from a simple

Chaiwala (Tapri) outside most offices /

colleges that impedes people from scaling

up on their options. Again the casualness

attached to tea gets highlighted.

So in order to break through these barriers, we

feel that the Tea Bar should be positioned in the

following way “Chai and Rejevunation” OR

“Re-Chai yourself”.

Tea drinking needs to be pushed as a healthy

beverage (Exhibit 4) to the people between the

age group of 25 to 35, the working class that

today is more health conscious. Not just that,

the Tea bar needs to build itself as a leisure

destination, a place where one can be his or

her own self. In this fast paced world of

technology, where face to face communication

has been replaced with Facebook, Tea bar can

position itself as a bridge that rekindles

togetherness and face to face communication.

As a product the company has the best

product in the market, with 32 variations of tea

being offered, a single store disadvantage can

be used as an opportunity to build exclusivity

around the brand. The next step to be taken is

to work on the aesthetics of the store, “People

do not eat with their mouths but with their

eyes” is a mantra that needs to be kept in

mind. A periphery of other services can be

created around Tea cafe, like trivia nights,

musical entertainment, book clubs (informal)

can be engaged, wi-fi facilities etc.

The question to be asked at the moment is not

about the success or the failure of the model,

but about the willingness to nurture a new

market. The Indian consumer was thought to

have a discerning palette, a myth that was

shattered with the advent of the coffee bar

model. Tea has an opportunity to be a White

Knight for its consumers, and give them a

chance to acquire taste towards its richness, a

commodity for which wars have been fought

and colonies being created. The road has just

started!

14| Buzz - The Markazine | SEP-OCT 2011 15| Buzz - The Markazine | SEP-OCT 2011

“

”

In this fast paced world of technology, where face to face communication has been replaced with Facebook, Tea bar can position itself as a bridge that rekindles togetherness and face to face communication.

Premiere

coverage of the election campaigns in various

countries, one cannot resist the impression

that this might be more of a war of brands than

a political contest. Journalists' and bloggers'

language is so riddled with terms from

marketing and brand management, that one

could as well be reading an Economic Times

piece about the competition between Pepsi and

Coke or an Economist review of the differences

between flying British Airways and Virgin

Atlantic!

The Rise of the Political Brand

Be it the famous “Change” campaign of

Democratic President Barack Obama or

strategy to reconnect the former Prime Minister

of UK, Tony Blair with disaffected voters,

commercial frameworks have become

immensely successful. Blair sought the

services of Promise plc, a commercial

consultancy specializing in brand building.

Promise converted the 'old and patronizing

Tony' to 'fresh, mature and approachable Tony';

Dr Yashaswi Barapatre

The Political Brand Icons:

Plain Charisma or just good PR?

Currently, an MBA student at Indian Institute of Foreign Trade (IIFT), New Delhi,

I have done my MBBS from Maulana Azad Medical College (Delhi University).

An avid quizzer, I am also interested in writing poetry and learning foreign languages.

“A politician will do anything to keep his job - even

become an actor.”

This quote by William Randolph clearly tells us how

much politics has evolved over the years. Political

communication too, has changed, from ideological

preaching to lifestyle branding. In the traditional days,

political communication was structured along a small

number of grand themes. In today's modern world,

politicians cannot rely upon the old forms of pomp

and ceremony to justify what they do. Instead

politicians, like actors have come to rely on political

marketing techniques, on forms of communication

based on persuasion in which voters, lacking

enduring political convictions, are motivated to select

a particular candidate or party at election time.

Being charismatic is a part of the politician's job.

However, to exude just the right amount of charisma

at the right time is extremely crucial. Following the

“ A politician will do anything to keep his job - even become an actor.”

thereby branding Labour Party as the 'New

Labour'.

Similarly, David Muir, a former adman and co

author of 'Business of Brands' is considered to

be the man behind Gordon Brown's PR

campaign. Back home, in 2009, L.K.Advani,

the BJP stalwart went the Obama way. He

started his rebranding campaign with the

statement, 'Man of Eighties, Vision of

Twenties'. He was projected as an ordinary

Indian


Gyan

coverage of the election campaigns in various

countries, one cannot resist the impression

that this might be more of a war of brands than

a political contest. Journalists' and bloggers'

language is so riddled with terms from

marketing and brand management, that one

could as well be reading an Economic Times

piece about the competition between Pepsi and

Coke or an Economist review of the differences

between flying British Airways and Virgin

Atlantic!

The Rise of the Political Brand

Be it the famous “Change” campaign of

Democratic President Barack Obama or

strategy to reconnect the former Prime Minister

of UK, Tony Blair with disaffected voters,

commercial frameworks have become

immensely successful. Blair sought the

services of Promise plc, a commercial

consultancy specializing in brand building.

Promise converted the 'old and patronizing

Tony' to 'fresh, mature and approachable Tony';

Dr Yashaswi Barapatre

The Political Brand Icons:

Plain Charisma or just good PR?

Currently, an MBA student at Indian Institute of Foreign Trade (IIFT), New Delhi,

I have done my MBBS from Maulana Azad Medical College (Delhi University).

An avid quizzer, I am also interested in writing poetry and learning foreign languages.

“A politician will do anything to keep his job - even

become an actor.”

This quote by William Randolph clearly tells us how

much politics has evolved over the years. Political

communication too, has changed, from ideological

preaching to lifestyle branding. In the traditional days,

political communication was structured along a small

number of grand themes. In today's modern world,

politicians cannot rely upon the old forms of pomp

and ceremony to justify what they do. Instead

politicians, like actors have come to rely on political

marketing techniques, on forms of communication

based on persuasion in which voters, lacking

enduring political convictions, are motivated to select

a particular candidate or party at election time.

Being charismatic is a part of the politician's job.

However, to exude just the right amount of charisma

at the right time is extremely crucial. Following the

“ A politician will do anything to keep his job - even become an actor.”

thereby branding Labour Party as the 'New

Labour'.

Similarly, David Muir, a former adman and co

author of 'Business of Brands' is considered to

be the man behind Gordon Brown's PR

campaign. Back home, in 2009, L.K.Advani,

the BJP stalwart went the Obama way. He

started his rebranding campaign with the

statement, 'Man of Eighties, Vision of

Twenties'. He was projected as an ordinary

Indian


Gyan

who was emotional, yet energetic enough to

give new direction to a country in political

turmoil. Like Obama's presidential campaign,

ads calling for Advani as P.M. were flashed in

more than 2,000 websites which were

frequented by Indians. Much on the lines of

Obama, Advani also wrote his biography which

was marketed in a planned manner.

The Cynical Voters:

Today, politicians not only thrive on their

leadership qualities but also on the PR that goes

behind it. The mind-set of voters taking part in

general elections has matured over the years.

Politically, they have become more aware and at

the same time, more demanding as well.

Therefore, it is essential that the political parties,

in the

near future, plan their political marketing in a

more responsive, accountable and professional

manner. This is the primary reason why

applications of brand management principles in

political parties are continuously increasing in

many countries.

Ghana's Story:

A South African brand management agency,

Brand Leadership Group was the brain behind

the political communication that led to the

success of Professor John Atta Mills, the

opposition NDC presidential candidate who was

sworn in as Ghana's president in 2009. Mills, a

former Vice-President in the Rawlings era

defeated the ruling party, NPP's Nana Akufo-Addo

in a tightly contested run-off on 28 December,

2008 claiming victory with 50.23% of the vote to

Akufo-Addo's 49.77%.

Brand Leadership Group, which was appointed by

the opposition party in early 2008 envisioned and

implemented the campaign right up to the run-off

which became necessary when a clear winner

could not emerge from the exit polls. Blending the

principles of marketing, branding and political

campaigning, the agency came up with a strategy

founded on what it called the 'Four-Phase political

branding' campaign designed to reassure

committed voters and re-establish the NDC and

Mills as the best custodians of Ghana's values.

ambitions and prosperity.

Conclusion:

in politics, all factors shaping voters' perceptions

– be it media, the politician's behavior itself, or

the actual issues raised by him, need to be

aligned in a manner that reflects good

leadership. The message should be simple,

unique, reassuring, aspiration, value-based and

credible. It is often observed that successful

politicians are have the ability to deliver simple,

credible and reassuring messages over time.

The characteristics of product branding are

related to political PR, like emotional connect,

promotion through multiple channels and

gaining trust. Trust building, in political PR, refers

to use of value-based words, phrases and

symbols to connect with the voters in order to

gain the necessary support. Politics is all about

trusting a candidate in the age of mistrust.

Hence, political brands can be cultivated as well

as contaminated through good PR.

Today, politicians not only thrive on their leadership qualities but

also on the PR that goes behind it. The mind-set of voters taking

part in general elections has matured over the years. Politically,

they have become more aware and at the same time, more

demanding as well.


Gyan

who was emotional, yet energetic enough to

give new direction to a country in political

turmoil. Like Obama's presidential campaign,

ads calling for Advani as P.M. were flashed in

more than 2,000 websites which were

frequented by Indians. Much on the lines of

Obama, Advani also wrote his biography which

was marketed in a planned manner.

The Cynical Voters:

Today, politicians not only thrive on their

leadership qualities but also on the PR that goes

behind it. The mind-set of voters taking part in

general elections has matured over the years.

Politically, they have become more aware and at

the same time, more demanding as well.

Therefore, it is essential that the political parties,

in the

near future, plan their political marketing in a

more responsive, accountable and professional

manner. This is the primary reason why

applications of brand management principles in

political parties are continuously increasing in

many countries.

Ghana's Story:

A South African brand management agency,

Brand Leadership Group was the brain behind

the political communication that led to the

success of Professor John Atta Mills, the

opposition NDC presidential candidate who was

sworn in as Ghana's president in 2009. Mills, a

former Vice-President in the Rawlings era

defeated the ruling party, NPP's Nana Akufo-Addo

in a tightly contested run-off on 28 December,

2008 claiming victory with 50.23% of the vote to

Akufo-Addo's 49.77%.

Brand Leadership Group, which was appointed by

the opposition party in early 2008 envisioned and

implemented the campaign right up to the run-off

which became necessary when a clear winner

could not emerge from the exit polls. Blending the

principles of marketing, branding and political

campaigning, the agency came up with a strategy

founded on what it called the 'Four-Phase political

branding' campaign designed to reassure

committed voters and re-establish the NDC and

Mills as the best custodians of Ghana's values.

ambitions and prosperity.

Conclusion:

in politics, all factors shaping voters' perceptions

– be it media, the politician's behavior itself, or

the actual issues raised by him, need to be

aligned in a manner that reflects good

leadership. The message should be simple,

unique, reassuring, aspiration, value-based and

credible. It is often observed that successful

politicians are have the ability to deliver simple,

credible and reassuring messages over time.

The characteristics of product branding are

related to political PR, like emotional connect,

promotion through multiple channels and

gaining trust. Trust building, in political PR, refers

to use of value-based words, phrases and

symbols to connect with the voters in order to

gain the necessary support. Politics is all about

trusting a candidate in the age of mistrust.

Hence, political brands can be cultivated as well

as contaminated through good PR.

Today, politicians not only thrive on their leadership qualities but

also on the PR that goes behind it. The mind-set of voters taking

part in general elections has matured over the years. Politically,

they have become more aware and at the same time, more

demanding as well.


Gyan

Every business aims for a share in the market and the

profits. Business functions have been divided so that

each of them is clear in its objectives and processes.

Healthy conflict ensures that the business benefits

the most and is in the best interests of all.

A l e a d

generated by

the marketing

personnel is

sent to the

sales team

who attribute

t h e

s u c c e s s f u l

conversion of

the prospect to the salesmen's efforts. However,

when unsuccessful, they blame the marketing team

for wasting their time and sending in a list of difficult

to convert or improperly analysed leads. Marketing,

in turn, dubs it as sales inefficiency. Be it a product's

success, resource sharing or compensation system,

the fight between Sales and Marketing seems to be a

perpetual one.

While marketing takes care of the product awareness

and branding related aspects taking into account the

long term view and nature of the market, sales is

more about building customer lists and relationships

in conjunction with the current targets.

Each has its own contribution and is

incomplete without the other. Consider a

situation where we have excellently pitched

our product to our target audience. Is our job

as an organization then complete? For

tangible results and measurement of our

marketing efforts, we need numbers and that

is where sales come to our rescue. After all,

selling is the sole purpose of producing which

is even captured by our financial statements.

Thus, selling involves two processes that need

to complement each other so as to

accomplish the goals of the organization.

The Push and Pull Strategies give a clearer

picture of marketing and sales. For example, the

buzz that Steve Jobs created for Apple on techno

geek blogs and in the entire media didn't require

sales of the products to be pushed. Rather, the

products were demanded due to extensive

advertising and promotion.

Marketing spends like advertising and

promotion are a function of sales. Citing an

example of Dabur, its A&P spends stood at

Rs.151.5 crore in the Q1FY12 which is

Affable by nature and easily

approachable, Nishant never shies

away from helping anyone in need.

He is a firm believer in the principle of

“Giving back to society”. He gels well

with team members and always

motivates others to give in their

100%. He believes in the mantra

“Practice what you Preach”. He is an

ardent cricket fan and himself an all-

rounder.

Roshan is simple, strong, disciplined,

confident and passionate about

sports. He loves to make new friends

and enjoys team work. A good leader,

he always comes forward to take

responsibilities and manages people

well. He loves travelling and listening

to music.

Authors

ICICI Bank adopted aggressive selling tactics when the Indian economy was booming, compromising seldom on the credit quality which consequently led to NPA's. Now they have adopted a conservative approach, contracting their selling in several product markets.

Sales vs. Marketing

The Fight and the Truce

21| Buzz - The Markazine | SEP-OCT 2011

Company Advertising and Promotion

spends as a % of sales

GCPL

11.7

Marico

11

HUL

Nirma Soaps* 11.5

1.25 to 2%

20| Buzz - The Markazine SEP-OCT 2011

Gyan

Nishant Hingu

Roshan Tirkey

Every business aims for a share in the market and the

profits. Business functions have been divided so that

each of them is clear in its objectives and processes.

Healthy conflict ensures that the business benefits

the most and is in the best interests of all.

A l e a d

generated by

the marketing

personnel is

sent to the

sales team

who attribute

t h e

s u c c e s s f u l

conversion of

the prospect to the salesmen's efforts. However,

when unsuccessful, they blame the marketing team

for wasting their time and sending in a list of difficult

to convert or improperly analysed leads. Marketing,

in turn, dubs it as sales inefficiency. Be it a product's

success, resource sharing or compensation system,

the fight between Sales and Marketing seems to be a

perpetual one.

While marketing takes care of the product awareness

and branding related aspects taking into account the

long term view and nature of the market, sales is

more about building customer lists and relationships

in conjunction with the current targets.

Each has its own contribution and is

incomplete without the other. Consider a

situation where we have excellently pitched

our product to our target audience. Is our job

as an organization then complete? For

tangible results and measurement of our

marketing efforts, we need numbers and that

is where sales come to our rescue. After all,

selling is the sole purpose of producing which

is even captured by our financial statements.

Thus, selling involves two processes that need

to complement each other so as to

accomplish the goals of the organization.

The Push and Pull Strategies give a clearer

picture of marketing and sales. For example, the

buzz that Steve Jobs created for Apple on techno

geek blogs and in the entire media didn't require

sales of the products to be pushed. Rather, the

products were demanded due to extensive

advertising and promotion.

Marketing spends like advertising and

promotion are a function of sales. Citing an

example of Dabur, its A&P spends stood at

Rs.151.5 crore in the Q1FY12 which is

Affable by nature and easily

approachable, Nishant never shies

away from helping anyone in need.

He is a firm believer in the principle of

“Giving back to society”. He gels well

with team members and always

motivates others to give in their

100%. He believes in the mantra

“Practice what you Preach”. He is an

ardent cricket fan and himself an all-

rounder.

Roshan is simple, strong, disciplined,

confident and passionate about

sports. He loves to make new friends

and enjoys team work. A good leader,

he always comes forward to take

responsibilities and manages people

well. He loves travelling and listening

to music.

Authors

ICICI Bank adopted aggressive selling tactics when the Indian economy was booming, compromising seldom on the credit quality which consequently led to NPA's. Now they have adopted a conservative approach, contracting their selling in several product markets.

Sales vs. Marketing

The Fight and the Truce


Company Advertising and Promotion

spends as a % of sales

GCPL

11.7

Marico

11

HUL

Nirma Soaps* 11.5

1.25 to 2%


Gyan

Nishant Hingu

Roshan Tirkey

generation is possible by adequate promotion

activities. Marketing and Sales can hence be

compared to a basketball game where marketing

plays the role of a point guard creating and

defining opportunities and Salesmen, scoring

and

making numbers.

In the present state of abundance, where a

customer has a lot of alternatives to choose from,

it is important for companies to differentiate their

products and to survive in the current scenario,

it's not Sales OR Marketing that requires

attention, rather it is Sales AND Marketing that

would work wonders to earn those revenues

(Exhibit 3).

Revenues=f (Sales, Marketing, other units)

Scale and Friction: Consider a small scale

company where employees don the hats of

marketing, sales, operations, and finance all at

the same time. Eternal tiff of who is the real driver

of the revenues certainly does not arise in this

case. However, once the company matures and is

divided into various units for efficient

administration,a tiff does arise. Belittling

contribution of one for the other for revenue

purposes is indeed very myopic.

A common integrated approach including regular

meetings between the sales and the marketing

approximately 12.5% of their sales (* is % of

turnover)

Marketing expenditures in companies like

GCPL, Marico, and HUL follow a percentage

of sales method. Sales requires marketing

plans

and leads generation from the marketing

team. Thus, there exists a bi-directional flow

of information between the two. This also

ensures that resources are shared equitably.

For FMCG products, reaching out to

maximum retail outlets is the key. Indian

rural population which forms 68.83% of the

total population of 2011 is a huge potential

market, though with a lot of challenges,

logistics being the dominant one. Sales and

distribution is certainly a difficult task here

and the HUL Project, Shakti and Shaktimaan

(Exhibit 2), has proved that revenue

The tiff isn’t prevalent in small scale companies

between who is the driver of revenues- sales or

marketing. The issue becomes dominant when the

company grows in size.

India Population No. of people

Rural 83,30,87,662

Total 1,21,01,93,422

Company Gross sales Employee costs A & P spends

P & G India, Q4March’10-‘11 247.20 13.92 37.96

GCPL, Q1June’11-‘12 647.91 31.14 65.57 Dabur India Ltd, March ‘11* 3295.36 208.92 390.19

Nirma Ltd., March ’10* 3329.18 112.23 58.82

Exhibit 3- Gross Sales, Employee costs and Advertising and Promotion spends in crore

Exhibit 2- Project Shakti and Shaktimaan

Project Shakti

Ÿ Business objective: To extend direct reach into untapped markets and to build brands through

local influencers.

Ÿ It provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and

provides access to quality products across 100,000+ villages and over 3 million households every

month.

Ÿ It contributes to 10% of rural turnover nationally for HUL. In most Shakti markets, HUL is

dominant and enjoys a market share which is qualitatively better as compared to non-Shakti

markets.Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India.

Ÿ Project Shaktimaan enrols an unemployed or under-employed male member of a Shakti

family to sell our products in the surrounding villages.

Ÿ The initiative enhances two aspects simultaneously – livelihood opportunities of the Shakti

family and the quality and depth of the distribution of HUL products.

Ÿ By the end of 2010, there were more than 23,000 Shaktimaan representatives going to

villages across India.

Shakti Programme has helped in tripling the rural footprint by reaching out to increased

teams, employing efficient lead generation

mechanism and shuffling of people from sales to

marketing and vice versa to understand the other

side of the coin, will certainly help to call a truce

between the two.


Gyan

generation is possible by adequate promotion

activities. Marketing and Sales can hence be

compared to a basketball game where marketing

plays the role of a point guard creating and

defining opportunities and Salesmen, scoring

and

making numbers.

In the present state of abundance, where a

customer has a lot of alternatives to choose from,

it is important for companies to differentiate their

products and to survive in the current scenario,

it's not Sales OR Marketing that requires

attention, rather it is Sales AND Marketing that

would work wonders to earn those revenues

(Exhibit 3).

Revenues=f (Sales, Marketing, other units)

Scale and Friction: Consider a small scale

company where employees don the hats of

marketing, sales, operations, and finance all at

the same time. Eternal tiff of who is the real driver

of the revenues certainly does not arise in this

case. However, once the company matures and is

divided into various units for efficient

administration,a tiff does arise. Belittling

contribution of one for the other for revenue

purposes is indeed very myopic.

A common integrated approach including regular

meetings between the sales and the marketing

approximately 12.5% of their sales (* is % of

turnover)

Marketing expenditures in companies like

GCPL, Marico, and HUL follow a percentage

of sales method. Sales requires marketing

plans

and leads generation from the marketing

team. Thus, there exists a bi-directional flow

of information between the two. This also

ensures that resources are shared equitably.

For FMCG products, reaching out to

maximum retail outlets is the key. Indian

rural population which forms 68.83% of the

total population of 2011 is a huge potential

market, though with a lot of challenges,

logistics being the dominant one. Sales and

distribution is certainly a difficult task here

and the HUL Project, Shakti and Shaktimaan

(Exhibit 2), has proved that revenue

The tiff isn’t prevalent in small scale companies

between who is the driver of revenues- sales or

marketing. The issue becomes dominant when the

company grows in size.

India Population No. of people

Rural 83,30,87,662

Total 1,21,01,93,422

Company Gross sales Employee costs A & P spends

P & G India, Q4March’10-‘11 247.20 13.92 37.96

GCPL, Q1June’11-‘12 647.91 31.14 65.57 Dabur India Ltd, March ‘11* 3295.36 208.92 390.19

Nirma Ltd., March ’10* 3329.18 112.23 58.82

Exhibit 3- Gross Sales, Employee costs and Advertising and Promotion spends in crore

Exhibit 2- Project Shakti and Shaktimaan

Project Shakti

Ÿ Business objective: To extend direct reach into untapped markets and to build brands through

local influencers.

Ÿ It provides livelihood enhancing opportunities to about 45,000 women in 15 Indian states and

provides access to quality products across 100,000+ villages and over 3 million households every

month.

Ÿ It contributes to 10% of rural turnover nationally for HUL. In most Shakti markets, HUL is

dominant and enjoys a market share which is qualitatively better as compared to non-Shakti

markets.Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India.

Ÿ Project Shaktimaan enrols an unemployed or under-employed male member of a Shakti

family to sell our products in the surrounding villages.

Ÿ The initiative enhances two aspects simultaneously – livelihood opportunities of the Shakti

family and the quality and depth of the distribution of HUL products.

Ÿ By the end of 2010, there were more than 23,000 Shaktimaan representatives going to

villages across India.

Shakti Programme has helped in tripling the rural footprint by reaching out to increased

teams, employing efficient lead generation

mechanism and shuffling of people from sales to

marketing and vice versa to understand the other

side of the coin, will certainly help to call a truce

between the two.


Gyan

products/services and hence no brand loyalty

involved.

!·Customer Engagement, where companies

start engaging customers on a long term basis.

This is the first step towards building Customer

loyalty. Various methods used include online

forums to collect customer reviews, upgrading

and modifying products asper customers'

feedback and informing customers that their

complaints and suggestions have been given

due consideration, sending invites to customers

f o r c o m p a n y f e s t s e t c .

! Customer Delight which means that the

customers are delighted to be associated with a

brand and are brand loyal.

The most important question – Why is there so

much focus on gaining customers' loyalty?

It's simple. Because it costs five times as much

to find a new customer than it does to get a

current customer to come back, Customer

Retention and Customer Perceived Life time

value (CPV) hold greater significance than

Rahul Kumar

Rahul is pursuing Post Graduate

Programme in Management from

IIM Lucknow 2011-13. He has done

B . E . i n E l e c t r o n i c s a n d

Communication from Manipal

University and has worked with

Honeywell for 22 months as

Hardware Engineer.

Customer Loyalty Programs:

Enough for Customer retention?

Trisha Pandey

Ÿ

Trisha is pursuing her Master of

Management at SJMSOM, IIT

Bombay 2011-13. She has done



University and has worked for 34

months in VLSI domain with

Freescale Semiconductor India

Pvt. Ltd. as Senior Design Engineer.

Customer satisfaction is worthless. Customer loyalty is

priceless.

- -Jeffrey Gitomer

Over the years marketing strategy of companies has

evolved from the product concept to selling concept to

marketing concept to societal marketing concept and

now to the holistic marketing concept. Customers form

the center of marketing system and all marketing

strategies devised by the marketers like loyalty programs

etc. revolve around the customer. There are three levels

of customers' relationship hierarchy, which companies

try to achieve one after the other.

There are three levels of customers' relationship

hierarchy, which companies try to achieve one after the

other.

!·The first level is Customer Satisfaction, the basic intent

of which is to identify and satisfy customers' needs. There

is no distinction involved at this stage since customers

may be sat i s f ied by us ing any company 's

Customer Acquisition.

Companies have resorted to the use of various

programs intended to build Customer Loyalty –

a loyalty card, rewards card, points or club

card, membership programs, onl ine

communities etc. The holders of these cards or

members of communities are offered discount

on purchase of company's products or points

in lieu of which they get gifts/freebies.

Here is a simple but powerful rule - always give people more than what they expect to get.

- Nelson Boswell



Trendz

products/services and hence no brand loyalty

involved.

!·Customer Engagement, where companies

start engaging customers on a long term basis.

This is the first step towards building Customer

loyalty. Various methods used include online

forums to collect customer reviews, upgrading

and modifying products asper customers'

feedback and informing customers that their

complaints and suggestions have been given

due consideration, sending invites to customers

f o r c o m p a n y f e s t s e t c .

! Customer Delight which means that the

customers are delighted to be associated with a

brand and are brand loyal.

The most important question – Why is there so

much focus on gaining customers' loyalty?

It's simple. Because it costs five times as much

to find a new customer than it does to get a

current customer to come back, Customer

Retention and Customer Perceived Life time

value (CPV) hold greater significance than

Rahul Kumar

Rahul is pursuing Post Graduate

Programme in Management from

IIM Lucknow 2011-13. He has done



University and has worked with

Honeywell for 22 months as

Hardware Engineer.

Customer Loyalty Programs:

Enough for Customer retention?

Trisha Pandey

Ÿ

Trisha is pursuing her Master of

Management at SJMSOM, IIT

Bombay 2011-13. She has done



University and has worked for 34

months in VLSI domain with

Freescale Semiconductor India

Pvt. Ltd. as Senior Design Engineer.

Customer satisfaction is worthless. Customer loyalty is

priceless.

- -Jeffrey Gitomer

Over the years marketing strategy of companies has

evolved from the product concept to selling concept to

marketing concept to societal marketing concept and

now to the holistic marketing concept. Customers form

the center of marketing system and all marketing

strategies devised by the marketers like loyalty programs

etc. revolve around the customer. There are three levels

of customers' relationship hierarchy, which companies

try to achieve one after the other.

There are three levels of customers' relationship

hierarchy, which companies try to achieve one after the

other.

!·The first level is Customer Satisfaction, the basic intent

of which is to identify and satisfy customers' needs. There

is no distinction involved at this stage since customers

may be sat i s f ied by us ing any company 's

Customer Acquisition.

Companies have resorted to the use of various

programs intended to build Customer Loyalty –

a loyalty card, rewards card, points or club

card, membership programs, onl ine

communities etc. The holders of these cards or

members of communities are offered discount

on purchase of company's products or points

in lieu of which they get gifts/freebies.

Here is a simple but powerful rule - always give people more than what they expect to get.

- Nelson Boswell



Trendz

How does one go about building customer

loyalty?

Customer loyalty is not earned in a day, it involves

continuous effort throughout. Customer loyalty

cannot be sustained for long unless the quality of

products/services offered by the company is not

up to the expectation and so is the case with

post-purchase

services. It is important to listen to customer's

p e r c e p t i o n o f t h e b r a n d a n d

simultaneously also analyze the reasons for

s w i t c h i n g / d e f e c t i o n .

!Communication – The key to any long term

relationship be it personal, professional or

emotional is communication. Communication

being a two way process; it is as important to

communicate the attributes and values of

product/service to the customer as listening to

the customers for their likes, dislikes,

grievances, etc.

!Consistency – The best way to build rapport

with a customer is to be consistent in quality

and other deliverables like on time delivery

and responsiveness to consumer demand.

From day to day goods low involvement

products like FMCG to high involvement

products like automobiles a customer wants

consistent performance every time one buys

or consumes it.

!Credibility – This is the most important trait

that links the company's performance to its

brand value. Delivering to the customers what

is claimed and finding the correct solution to a

customer's requirement are two ways how a

company can bring credibility to its brand and

itself. A customer is willing to wait for a certain

amount of time to get what he needs rather

than settle for a solution that can only be

termed as 'jugaad'.

!Surprise – Give the customer more than what

they expect. An act as simple as greeting cards sent

on the occasion of New Year or an e-mail expressing

gratitude, a follow-up phone call to know how if they

like a product/service goes a long way in building

relationships. And like in any other relationship a

company cannot afford to take customers for

granted.

The overall gist is that the “Customers are the soul

of any business”. For an organization to sustain in

long term and to grow its top-line the need is not

only Customer Acquisition through capture of new

markets, Market Penetration or Product

Diversification but Customer Retention through

game changer strategy of Customer Loyalty. At the

same time the brands should exercise extreme care

that the loyalty once built is not thwarted by any

compromise on quality of products/services.

Precisely, Customer Delight is a high returns, high

risk stage to be in.

Loyal customers, they don't just come back, they don't

simply recommend you, they insist that their friends do

business with you.- Chip Bell, Founder Chip Bell Group

PG | Buzz - The Markazine | SEP-OCT 201126| Buzz - The Markazine SEP-OCT 2011

Trendz

How does one go about building customer

loyalty?

Customer loyalty is not earned in a day, it involves

continuous effort throughout. Customer loyalty

cannot be sustained for long unless the quality of

products/services offered by the company is not

up to the expectation and so is the case with

post-purchase

services. It is important to listen to customer's

p e r c e p t i o n o f t h e b r a n d a n d

simultaneously also analyze the reasons for

s w i t c h i n g / d e f e c t i o n .

!Communication – The key to any long term

relationship be it personal, professional or

emotional is communication. Communication

being a two way process; it is as important to

communicate the attributes and values of

product/service to the customer as listening to

the customers for their likes, dislikes,

grievances, etc.

!Consistency – The best way to build rapport

with a customer is to be consistent in quality

and other deliverables like on time delivery

and responsiveness to consumer demand.

From day to day goods low involvement

products like FMCG to high involvement

products like automobiles a customer wants

consistent performance every time one buys

or consumes it.

!Credibility – This is the most important trait

that links the company's performance to its

brand value. Delivering to the customers what

is claimed and finding the correct solution to a

customer's requirement are two ways how a

company can bring credibility to its brand and

itself. A customer is willing to wait for a certain

amount of time to get what he needs rather

than settle for a solution that can only be

termed as 'jugaad'.

!Surprise – Give the customer more than what

they expect. An act as simple as greeting cards sent

on the occasion of New Year or an e-mail expressing

gratitude, a follow-up phone call to know how if they

like a product/service goes a long way in building

relationships. And like in any other relationship a

company cannot afford to take customers for

granted.

The overall gist is that the “Customers are the soul

of any business”. For an organization to sustain in

long term and to grow its top-line the need is not

only Customer Acquisition through capture of new

markets, Market Penetration or Product

Diversification but Customer Retention through

game changer strategy of Customer Loyalty. At the

same time the brands should exercise extreme care

that the loyalty once built is not thwarted by any

compromise on quality of products/services.

Precisely, Customer Delight is a high returns, high

risk stage to be in.

Loyal customers, they don't just come back, they don't

simply recommend you, they insist that their friends do

business with you.- Chip Bell, Founder Chip Bell Group

PG | Buzz - The Markazine | SEP-OCT 201126| Buzz - The Markazine SEP-OCT 2011

Trendz

“What's in it for me?” was the question,

popped in the midst of a crowd of 450

students, to us. “A roller-coaster ride” is what

we replied. True to our word, we presented to

the batch a ride to remember in the form of

'Pitchfork'. The participants modified the old

said proverb to, “Little pitchers have long and

sharp ears”. Wit and marketing skills were put

to test over four rounds with rigorous tasks of

planning and selling involved in each.

Next to hit the floor was 'Two-Timers', a red

carpet welcome to the world of marketing!The

theme was laid with the beauty of marketing

mix by incorporating the product into 'Be

Anagramically wise', place into 'Treasure

hunt', price into 'Guess' and promotion into

'Brand Stand'.

ConQuest2011

And the ride doesn't end here. Enter the 'King of

good times'- NJM Conquest. It is a platform given

to the junior committee members to have a first-

hand experience of the world of marketing.

Interaction with over 2000 customers while

mapping responses for five big brands is

definitely a major addition to the skill set; and all

this along with fun-filled salesmanship,

questioning and shadowing! It is the sheer

pleasure derived, at the end of the day, from a

realization that a plethora of questions like how,

why, who, when, where, which, whose, whom et

al of consumer behaviour got answered, that

counts. That was just the beginning now the real

fun starts (analysis), late nights, packed

schedules are all a common place. And that is

exactly what we believe in. That is 'Not Just

Marketing'.

N J MFEATURE

Some of the brands at ConQuest 2011 . .


“What's in it for me?” was the question,

popped in the midst of a crowd of 450

students, to us. “A roller-coaster ride” is what

we replied. True to our word, we presented to

the batch a ride to remember in the form of

'Pitchfork'. The participants modified the old

said proverb to, “Little pitchers have long and

sharp ears”. Wit and marketing skills were put

to test over four rounds with rigorous tasks of

planning and selling involved in each.

Next to hit the floor was 'Two-Timers', a red

carpet welcome to the world of marketing!The

theme was laid with the beauty of marketing

mix by incorporating the product into 'Be

Anagramically wise', place into 'Treasure

hunt', price into 'Guess' and promotion into

'Brand Stand'.

ConQuest2011

And the ride doesn't end here. Enter the 'King of

good times'- NJM Conquest. It is a platform given

to the junior committee members to have a first-

hand experience of the world of marketing.

Interaction with over 2000 customers while

mapping responses for five big brands is

definitely a major addition to the skill set; and all

this along with fun-filled salesmanship,

questioning and shadowing! It is the sheer

pleasure derived, at the end of the day, from a

realization that a plethora of questions like how,

why, who, when, where, which, whose, whom et

al of consumer behaviour got answered, that

counts. That was just the beginning now the real

fun starts (analysis), late nights, packed

schedules are all a common place. And that is

exactly what we believe in. That is 'Not Just

Marketing'.

N J MFEATURE

Some of the brands at ConQuest 2011 . .


Print Ads


From over 80 entries from all over India, these were the top 4 that made the cut !!

Winner

Runners Up

By Adi

tya

Nair-

K J S

omai

ya

By Avik Ghosh - NITIE

Print Ads


From over 80 entries from all over India, these were the top 4 that made the cut !!

Winner

Runners Up

By Adi

tya

Nair-

K J S

omai

ya

By Avik Ghosh - NITIE

Maze A

1) The Ex-Chairman of a legendary Indian firm.

whose famous quote is “After all a promise is a

promise”

2) Passed a statement recently," There is a need

for us to satisfy that there is no hostility towards

us for the state. Which state?

3) This state has a new de-anglicized name now.

What is it?

Maze B

1) A physician-writer who was banned from her

own country. Who is she?

2) Hence she was made to exit her country to

start a life in exile here. Where?

3) This country is the largest exporter of

_______.

Maze C

1) This brand has moved from orange to pink to

red. Which brand is it?

2) This is its unusual brand ambassador.

Maze D

1) This company has a plant in Manesar. Which

company is it?

2) Its literal meaning is taken from the name of

the father of this worshipped devotee. Who is

he?

3) An animated movie was made on him under the

banner of_______.

Maze E

1) The new Chairman of “what keeps the doctor

away” –_________.

2) He shares his last name with which famous

travel agency?

Maze F

1) Its tourism advertisement says- "God's own

country". We are talking about ________.

2) But it does not have what Gujarat does (In the

form of a brand ambassador). What is it?

3) He recently made everyone familiar with a

genetic disease through his work. Which disease?

Churn

PG | Buzz - The Markazine | Feb - Jun 2011 33| Buzz - The Markazine | SEP-OCT 2011

Unleash the maze

Answers: A Ratan Tata, West Bengal, Paschim Banga. B Taslima Nasreen, Sweden, Music (Pop and Rock) C Vodafone, Pug D Maruti, Hanuman, Sahara E Tim Cook, Thomas Cook F Kerala, Amitabh Bachchan, Progeria

Competition


OnlineCase Study Competition


&

Coming Soon . .

present

Cash Prize

Rs. 10,000/-

keep watching . .

Maze A

1) The Ex-Chairman of a legendary Indian firm.

whose famous quote is “After all a promise is a

promise”

2) Passed a statement recently," There is a need

for us to satisfy that there is no hostility towards

us for the state. Which state?

3) This state has a new de-anglicized name now.

What is it?

Maze B

1) A physician-writer who was banned from her

own country. Who is she?

2) Hence she was made to exit her country to

start a life in exile here. Where?

3) This country is the largest exporter of

_______.

Maze C

1) This brand has moved from orange to pink to

red. Which brand is it?

2) This is its unusual brand ambassador.

Maze D

1) This company has a plant in Manesar. Which

company is it?

2) Its literal meaning is taken from the name of

the father of this worshipped devotee. Who is

he?

3) An animated movie was made on him under the

banner of_______.

Maze E

1) The new Chairman of “what keeps the doctor

away” –_________.

2) He shares his last name with which famous

travel agency?

Maze F

1) Its tourism advertisement says- "God's own

country". We are talking about ________.

2) But it does not have what Gujarat does (In the

form of a brand ambassador). What is it?

3) He recently made everyone familiar with a

genetic disease through his work. Which disease?

Churn

PG | Buzz - The Markazine | Feb - Jun 2011 33| Buzz - The Markazine | SEP-OCT 2011

Unleash the maze

Answers: A Ratan Tata, West Bengal, Paschim Banga. B Taslima Nasreen, Sweden, Music (Pop and Rock) C Vodafone, Pug D Maruti, Hanuman, Sahara E Tim Cook, Thomas Cook F Kerala, Amitabh Bachchan, Progeria

Competition




&

Coming Soon . .

present

Cash Prize

Rs. 10,000/-

keep watching . .

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