CREATIVE THAT CRACKS THE CODE

EARLIER WEB BROWSERPolluted with mortgage refinancing and weight-loss ads

NOWADAYS WEB BROWSERad-optimizing technologies and filter-defying product placement, search-based ad serves, real-time media bidding, and location-based features.

HENCE WE CAN SAY THAT :

MARKETING IS A SCIENCE NOT AN ART

SIX CAMPAIGNS THAT CRACKS THE CODE OF ADVERTISING :

1

Variations on a meme: wonderful Pistachios

• Advertising creative knows the power of memes• Wendy’s tagline “Where’s the beef?” were picked up

and repurposed from preschools to presidential debates.

PISTACHIOS CAMPAIGN AND ADS• The campaign started using celebrities which was

successful• National TV spots in its first year yielded a 233%

increase in sales.

INDIAN CONTEXTAdidas India ad

SOME INSIGHTS ABOUT ADIDAS INDIA AD• The idea is to connect people , give goodies & promote their product

• The brand’s objective is to create a buzz about the Adidas Originals Store that has been newly launched in Chennai via Twitter and also drive more walk-ins to the store

• User have to tweet with a hashtag #tweetatee between 5pm & 5:15 pm to avail free tee

2

• Plenty of advertising is already embedded in electronic games• The new wrinkle is that gaming can be embedded in ads• Coca cola china TV ads allow viewers to “chok” bottle caps

flying across their tv screen

• Electronic games started out as all whiz-bang technology• Today’s gamers demand not only stunning visuals but also

narrative and emotional depth

3

Collaborating with Crowd: Oreo Cookies

CROWDSOURCING

• Business world rediscovered, crowd sourcing is way to get fresher, better ideas

• Tongal can be used to extract ideas

CROWDSOURCING

• Time commitment asked to the crowd measures in minutes

• 99% of the people lacks time & engagement

• Brand launched a 100 day series of cookie designs• Invited people to nominate pegs every morning &

vote later for best design

Sharing of Oreo's Facebook page rose by 4,400%

INDIAN CONTEXT

Zomato Crowdsourcing For It’s New TVC #20toMillion

• 20 seconds of creative work can fetch you a Million• Zomato is on the hunt for it’s next television

commercial and instead of going to a well-known agency, it is knocking at your doors

•  The winner will be awarded with Rs 5 lakh

4

Just Enough Humour: 

Kia Motors America

• Kia motors America showed roads filled with hamster wheels

• Evoked the drab mindlessness of daily commute• The hamster ad showed everyone a “new way to

roll”

• They’re funny but not uproariously so.• That is the key to their product selling success• “excessive amounts of entertainment” tend to

backfire and actually reduce an ad’s persuasiveness”.

• There is not a single humorous line in two of the most influential books in the world, bible and the Sears, Roebuck catalog

• Be Funny but not too Funny• You can entertain a million people and not sell one

of them

INDIAN CONTEXT Vodafone –Zoozoo-

• Vodafone Zoo zoo's were launched during the IPL season by Oglivy & Mather, India

• 25 zoo zoo commercials released each day till the end of IPL season 2.

• These scrawny big-headed creatures, Zoozoos are actually ballet dancers dressed in white outfits while their facial expressions are black stickers

5

A New Social Movement: Marks and Spencer

• “socially responsible” goods cost more to produce than alternatives and those costs translate into higher prices

• When marketers gets committed social responsible goals tries to change consumer behaviour

Marks and Spencer• M&S and Oxfam launched Shwopping in April 2012• CEO Marc Bolland : “We’re leading a change in the way

we all shop for clothing, forever”

INDIAN CONTEXT

Ford India “I Pledge To Drive Safe” Facebook Campaign

• The Facebook app had multiple pledges which can be chosen by fans with badges to be earned

• It also has a leadership board displaying top pledgers• The idea of safe driving was brought out through fun and

sharing on Facebook

6

Ads That “Go Native”:

Neiman Marcus and Target

• Content providers maintain an uneasy alliance with advertiser

• Ads enjoy greater attention when they are hard to separate from the content that surrounds them.

• Target and Neiman Marcus teamed up on some merchandise and decided to advertise it on ABC’s drama series Revenge

• First they opted for a “takeover” of the program• Finally they hired the show’s cast to advertise for them

INDIAN CONTEXT

Cadbury diary milk advertising through Kaun banega crorepati (KBC)

• Cadbury diary milk promotes itself by providing the kbc winner with its product.

MODULE 3

DECLINE AND DEATH OF BRANDS

• Branding used to differentiate sellers• Customer based brand equity has been

developed• Death of a brand is preceded by slow and

debilitating decline over a prolonged period

Brand Equity – “ The differential effect that consumer knowledge about a brand has on the customer’s response to marketing activity ”

Famous Brands that declined over time :• Pan America• GM Oldsmobile

CAUSES OF BRAND DECLINE

PRODUCT EVOLUTION CYCLE

Monitored by 3 forces:

• Managerial and entrepreneurial activities (Generative force)

• The market environment (The selective force)

• Competitors’ actions and responses to marketing initiatives (Mediative force)

PRODUCT EVOLUTION CYCLE

Managerial actions (generative force) divided into 5 categories:

• Product quality

• Price increases

• Price cuts

• Brand neglect

• Inability to stay with target market

Brands often decline because of “leadership , management & employees making excuses rather than making integrity” – Ron Strauss

PRODUCT EVOLUTION CYCLE

Environmental factors (selective force) :• Markets-dynamic in nature• Major market transformation impacts various

companies• Changes in legal environment

• Example – cigarette brands• Affected by changes in legal environment• Strong regulation and negative publicity

PRODUCT EVOLUTION CYCLE

Competitive actions (Mediative Force) :• Onslaught from competitors

• Mergers and acquisitions

• Innovative changes

• Technological advancement

• Cost cutting

DECONSTRUCTURING BRAND DECLINE

To deconstruct brand decline , revisit brand equity concept

Three key elements of brand equity :• Differential effect

• Brand knowledge

• Customer response

REVITALIZING BRAND

• Brand’s equity most valuable asset

• Lesser known brands can be valuable

• New brands costs lot of money

• Revitalizing existing brand is worthful

GUIDELINES FOR REVIVAL OF A BRAND

• Is the brand worth reviving ?

• Take a long term perspective

• Carefully reposition the brand , invest in it , & educate the market

• Correct mismanagement of the brand

IS THE BRAND WORTH REVIVING ?

Criteria for revitalization :• Significant residual value• Examine all three aspects of brand equity• The revival cost must be comparable to the cost of new

product• Measuring the level of awareness• Brands with : singular focus well defined differentiation high premium

TAKING A LONG TERM PERSPECTIVE• Long-term perspective is imperative• Vision followed by well through out strategy &

execution Example – Netflix vs. BlockbusterBlockbuster marketing strategy to tackle Netflix :• Opened physical store to benefit total access

online program• Returning back a rented movie in return for a free

movie rentalResults :• Rental revenue increased from 4.9% to 10.4%• Subscribers increased by 1 million

Example :“ research was the primary tool used to revive the dewalt brand ” - brand manager of dewalt

CAREFULLY REPOSITION THE BRAND,INVEST IN IT & EDUCATE THE MARKET• proper positioning• Differentiation

Example – Oldsmobile• Playing catch up with the competition• Strong brand differentiation is not followed

Result :• GM lost the Oldsmobile brand

Brand Repositioning :• GM repositioned the brand by introducing Cadillac

CORRECT MISMANAGEMENT OF THE BRAND• Failure to understand the reasons behind brand decline• Inability to introduce new strategy

Ways to address themes behind brand decline :Rebuild quality :• Brand killed by poor quality• Quality must be improved with cost

Example – Harley Davidson• Improved quality• Extended product line• Cost cutting strategy

Result – sales increased

Example cont.… : Hyundai• Significant investment in quality• 100,000 mile service warranty

Results :• Hyundai rated above Mercedes Benz in 2006

REBUILD QUALITY

RESIST TEMPTATION TO “MILK” THE BRAND

Aggressive form of milking entails :• Cutting prices steadily• Reflection of brand weakened position

Example : Apple• Losing awareness• Invested in MP3 technology , IPOD• Came to forefront once more

Example : Levi’s• Selling lower quality jeans hurts the image• Needs to invest in styling the product

So what do we learn : • Revitalization is a worthwhile exercise

• Doesn’t costs much

LET THE REVITALIZATION BEGIN !!

MODULE

It consists of:price paid for some goods or services.RentsFaresWages Commissions

Adjusted by:RebatesDealer incentives

Price understanding

Changing pricing environmentMarket in south-asia

Affluent customer

Aspiring customer

strugglers

Internet:buyers discriminate sellers

Internet:sellers discriminate buyers

Internet: both buyers and sellers discriminate each other

Negotiate prices in online auctions and exchanges or even in person

Consumer psychology and pricing

•Price takers•Accepts prices at face value

Consumers arrival at their perceptions of price

1.Reference prices : compare prices

2. Price quality inferences

3. Price endings

Adapting the price

Price adaption strategies

•Geographical pricing.•Price discounts and allowances.•Promotional pricing.•Differentiated pricing.

Geographical pricing

Cash , countertrade , barter

Countertrade features:-

1.Barter2. Compensation deal3. Buyback arrangement4. offset

Price discount and allowances•Early payment•Volume purchases•Off season buying

Discount pricing is the modus operandi of companies products and services

Promotional pricingLoss leader pricing Special event

pricing

Special customer pricing

differentiated pricing

Price discrimination –1.first-degree ( demand )

2.Second - degree ( volume )

3.Tiered pricing - paying more with higher usage

Responding to competitors’ price changeThe company must consider:

1.Product’s stage in the life cycle2. Company’s portfolio3. Competitors’ intention and resources4. Market’s price & quality sensitivity5.Behaviour of costs with volume6. Alternative opportunities

Homogeneous marketCost cut? Enhance its augmented product

Cost rise?Match the price only if beneficial to industry

Non-Homogeneous market

Issues considered in non homogeneous market

1.Why did the competitor change price ?

2. Does he plan to make the price change temporary or permanent ?

3. What will happen to company’s market share & profit ?

4. What about other companies ? Will they respond ?

Low cost competitors

vs

vs

Response to Low cost competitors

1.Further differentiate the product or service

2. Introduce a Low cost venture

3. Reinvent as a low cost player

Setting the price

Selecting the pricing objective

1.Survival2.Maximum current profit3.MAXIMUM MARKET SHARE4.Maximum market skimming5.Product quality leadership

Determining demand

1.Price sensitivity

2.Estimating demand curves

3.Price elasticity of demand

estimating cost

1.Types of cost

2.Accumulated production

3.Target costing

analyzing competitors’ costs prices and offers

1.Value of competitor’s offer

2.How can a firm anticipate a competitior’s reaction ?

selecting pricing method

1.Markup pricing2.Target – return pricing3. Perceived -value pricing4. value pricing5. Going rate pricing6. Auction – type pricing

Selecting the final price

1.Impact of marketing activities

2. Company pricing policies

3. Gain and risk sharing pricing

4. Impact of price on other parties

Initiating and responding to price changes

Companies often :1. Cut prices 2. raise prices

Initiating price cuts•Excess plant capacity

•Drive to dominate market through lower costs

Traps due to price cuts

•Low-quality trap ( consumers assume quality is low ) •Fragile market share trap ( no market loyalty ) • shallow pockets trap longer staying power

•Price war trap

initiating price increase• cost inflation

•Anticipatory pricing

•Over demand

Ways to increase price

•Delayed quotation pricing

• escalator clauses ( todays price+rise due to inflation )•Unbundling

•Discount reduction

Alternates adopted to avoid price increase

• product downsizing

•Reducing product services , ex-free installation

•Using less expensive packaging material

•Reducing the number of models offered

MODULE

• WE LEARNT ABOUT CREATIVE PRESENTATION WITHOUT SAYING THROUGH MUCH THROUGH THE SLIDES

• EACH LINE SHOULD CONTAIN 7 WORDS ONLY

• USE OF CREATIVE FONTS

• USE OF PICTURES TO CONVEY MESSAGE

• NEGATIVE SPACING IS GOOD

These slides were created by :Akash Ranjan PradhanNIT RourkelaAs part of an internship under the guidance ofProf.Sameer Mathur IIM LucknowWWW.IIMInternship.com