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8/13/2019 Markathon February 2013 Edition
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perspective markathon|november 2012
BAD PIGGIES AINT SO BADSARTH RASTOGI | IIFT DELHI
When it comes to marketing analysis of any
product/brand, almost instantaneously we, the aspiring
Brand Managers think on the lines whether P&G
came out with a different Ariel this time for Bottom -
Loading washing machines, did Colgate add pickle in
their toothpaste or did Dhoni launch a dye to color his
graying beard.
But there exists a category other than FMCG and
Consumer Goods where Piglets are really
angry for you spread the gossip that they are
at war with the human race by spreading swine flu and
when that was not enough, projected them as the
Mogamboof the gaming world. And yes, they are now
back to take back revenge, challenging the avian lovers-
If you smell what The Rock is cooking!!
Finlands Rovio Entertainment, the company
that gave us Angry Birds has released yet
another masterpiece, a multi-platform
puzzle game- Bad Piggies. The game had a
big challenge to overcome the sophomore
slump/jinx a concept which seems almost
inevitable because of the Statistical
Phenomenon regression towards the
mean (excellently explained in an online
article titled as Why Movie Sequels and
Remakes Almost Always Fail by Satoshi Kanazawa,
London School of Economics and Political Science). In a
nutshell, sophomore slump/jinx refers to an event when
a second attempt to re-enact an overwhelming success
of first attempt doesnt live up to the expectations.
Spin-off versions of megahit game Tetris like Hatris,
Super Tetris etc. never really recreated the same magic.
The world is full of such examples that substantiate this
theory.
The game launched off with high fanfare and
gripped the attention of users who are
probably now busy helping piglets in
collecting egg shells. So much so was the
thrill and excitement level in the gaming
community that within just three hours of its
launch it soared to the top of paid iTunes App
Store charts.
Here is the analysis purely from the marketing
point of view of what helped the game to script
another success story- Many people
suspected that the new product would be a
different version of the main product Angry
Birds as were many of those which were
launched previously. Simple reason was
that analysts and reviewers held the view
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perspective markathon|november 2012
that Rovio wont let go off the mega success and the
theme that was clearly a proven winner. Though the
game is a spin-off of Angry Birds, Rovio successfully
changed the rules of the game. The perspective was
different. This ensured that there was no imitation interms of storyline, but at the same time they were able
to leverage the previous successes. Where have you
witnessed this earlier? A glimpse of the James Bond
movie series is enough to corroborate that this is an
important factor. It is a very difficult line to tread but
successive James Bond movies have been repetitively
hit since each time people are taken to a different world
through a different plot theme.
Marketing works wonders when targeted at an
appropriate time. Black Friday is popular in US just notbecause users get brilliant discounts on the products
but also because it sort of unofficially marks the start of
the Christmas festive season. The popularity of Angry
Birds had given Rovio a huge leeway and there were no
major developments done by them during the three
years in between. Too much of Angry Birds merchandise
and advertisements had caused a fatigue in the minds
of customers. The timing of the launchcould not havebeen better since Angry Birds hangover was about to
get over.
The success of any game or for that matter sequel of
any product can be bolstered well if the product is able
to capture more audience than what it originally did.
This game goes a notch above Angry Birds in terms of its
ability to allow users to utilize their intellect to solve the
puzzles. The good thing is that people just dont look at
it as a game but also as implementation of the rules
studied in Physics. The game play is more sophisticated
and people love the fact that Newtonian principles are
required to solve these. This has attracted those people
as well who thought Angry Birds was too childish to
play. In fact, one of the top rated reviews on Google
Play was- Not my style of game, but well done. People
will enjoy this game a lot. This shows that the target
segment that Angry Birds catered to has widened forBad Piggies and is something to cheer about.
Which marketer/retailer/manufacturer doesnt want
repeat business? It is a brand managers dream to
receive repeat business. With the scoring system in
place, Bad Piggies ensures that people try to improvise
on their solved levels so that they can move on to the
next levels. How it helps Rovio is that even when there
are X number of stages in any version of Bad Piggies,
these translate into many more stages since peoplestrive for more stars. The replayability though maysound as a very small factor but when looked from the
Rovios perspective, it gives the developers more time
to understand what people miss in the current version
and hence can incorporate them in subsequent
versions.
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perspective markathon|november 2012
A sustainable revenue modelis a must for any companybut at the same time, a software product cant be
released fully in the paid version. They ought to give
users a try so that they can do a hands-on trial of the
game and then
make a decision.
This is what
most companies
do when they
launch a new
product in
FMCG sectors as
well. To
popularize Zinga
(energy
beverage fromHector Beverages), they had extensive
promotional campaigns in Bangalore so that people can
try it out. This created a demand for the product.
Similarly, if one looks at Bad Piggies, there were some
free versions launched initially with limited stages so
that people can try it out. Later, once users get
accustomed to it and feel the urge for playing more
stages, they can buy the paid versions from App Stores.
In a nutshell, the pricing modelis very effective both increating demand and also in keeping the companygoing.
In the clutter of noise that many promotions and
advertisements create, how can one differentiate itself?
You engage subtly with customers. Create incentives for
them to participate in the interaction with the brand.
With the advent of social networking and related
promotional platforms this can be done very
effectively. Rovio tapped this brilliantly and
this is corroborated by their strong
presence on Facebook. The level of
enthusiasm is pretty evident by the high
involvement of people.
Such creative contributions by the followers
bolster the creation of brand equity. Finally, the
spectacular launch of the game made sure that thepeople were aware of the new game launch. One can
just imagine the kind of publicity a product would get
when the Taipei 101 Tower, one of the tallest buildings
of the world (second only to Burj Khalifa) and a
landmark skyscraper of Taiwan was painted green to
welcome the game. In Shanghai, the Citigroup Towerwas glowed with green light. In London, where the
game was launched at the top slot, Battersea Power
Station (a huge landmark) was taken over by the Piglets.
All of these efforts made sure that the game was a
success from its very launch. This gave immense brand
visibilityand a great brand recall.
All these successful efforts show that Rovio hasleft no stones unturned to gain favourable
presence and will surely help in its case to
achieve a valuation of more than $6
billion that it is aiming through its IPO.
Followers feel that the way things are
going, it may even achieve a valuation of
around $9 billion. If that happens, it will surpass
the ailing Nokia!!!
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cover story | markathon|month 2013
10
vartalaap markathon|january 2013
Patrick Barwise is the Emeritus Professor of Management and Marketing at
London Business School, and chairman of Which?, the UKs leading consumer
organization. After having a successful career at IBM, he joined the School in
1976. He has been widely recognized for his publications on management,
marketing and media. His book Simply Better, won the American Marketing
Associations 2005 Berry-AMA Prize and has been translated into seven
languages. His second book, Beyond the Familiar, was published in 2011. Healso works as a consultant, applied researcher, and expert witness and has
been involved in two successful start-up businesses. In this exclusive interview
with Markathon, he shares with us his experiences from the industry and
academia and throws light on some radical trends that will shape the future
including neuro-marketing and video ethnography.
An Interview with Prof. Patrick Barwise
Emeritus Professor of Management and Marketing in London School of Business
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cover story | markathon|month 2013
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vartalaap markathon|january 2013
Focus on what really matters to
customers. In reality, customers rarely
buy a product or service because it
offers something unique. Instead,
they usually buy the brand that they
expect to meet their basic needs from
the categorysmartphones or
mortgages or electricitya bit better
or more reliably and conveniently
than the competition.
Markathon:From a Systems Engineer to a Marketing
Director, what were the turning points in your
inspirational professional journey? And what
motivated you to come back to academia?
Patrick:As an IBM Systems Engineer, I worked in the
team providing sales and service to Barclays Bank, a
key account. I was never a real techie. My interest was
in helping the bank increase the performance of its
IBM systems through better operations management
as well as faster, better-tuned hardware. I was always
more interested in people than technology. Then at
business school, my best subject was finance but I
chose to work in marketing because it too is about
people. Rationally, no-one with the choice would
work in marketing rather than finance because its
less well paid, more difficult and riskier. But Im glad Ichose marketing because its about people; people
are infinitely interesting, and one never stops
learning. As for becoming an academic, I fell in love
with London Business School as an MBA student and I
place a lot of value on personal freedom i.e. the
freedom to work on what I want, and academia offers
you that. It was the right choice for me.
Markathon: As an expert in the field of media and
broadcasting, in your opinion how will the role oftelevision change in the times to come? What will be
the key to making it a relevant and effective medium
going forward?
Patrick: There are a lot of myths about the digital
revolution in television. In reality, unlike print media,
television is in extremely good health. What is
changing, more slowly than
most people believe, is the
distribution of TV content. Butthe content itself, what
people watch as well as how
much, when, where, why,
with whom, and even how
they watch, has changed
very little in the last fifty
years in markets like the
USA and UK. The two
main changes have
been the huge
increase in the
number of channels
(so viewing is now spread over more channels,
although very unevenly) and the improvement in
time-shift technology with the advent of digital video
recorders. However, even in homes with DVRs and
broadband, over 80% of viewing is still live and most
of the rest are the same programs time-shifted using
the DVR or a catch-up service such as the BBCs i-Player. Total viewing has actually increased in the last
five years, mostly on the main set in the living room.
Similarly, TV advertising has maintained its share of
display advertising despite the huge growth of online
advertising. Of course, on-demand and mobile
viewing are growing and there are lots of interesting
developments, but the big picture is very robust.
Markathon:Your book Simply Better: Winning and
Keeping Customers by Delivering What MattersMost has been highly recognized and widely read.
Can you share some highlights of the book with us?
Patrick: Simply Better has won the American
Marketing Associations annual book prize for the best
book in marketing. It has sold well in English and has
been translated into seven other languages. The core
message is simple and obvious: focus on what really
matters to customers. In reality, customers rarely buy
a product or service because it offers somethingunique. Instead, they usually buy the brand that they
expect to meet their basic needs from the category
smartphones or mortgages or electricity a bit better
or more reliably and conveniently than the
competition. The practical implication is that, if you
have to choose between (a) doing what Peter Drucker
said in 1954 meeting customer needs and (b)
differentiating your offer from the
competition, you should always
choose (a). That simple message
goes against marketers
obsession with differentiation
but the evidence to support it
is overwhelming and a lot of
firms have now taken it on
board. The twist is that
when it comes to branding
and advertising that is,
communications aboutyour offer, as opposed
to the offer itself it
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cover story | markathon|month 2013
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vartalaap markathon|january 2013
really is important to be distinctive in order to cut
through all the noise from the other brands. The
sweet spot is found when your offer meets
customers basic needs better than the competition
and you also have some nice unique features or
benefits and distinctive branding and advertising.
However, the most important part of this is an offerthat meets customers basic category needs better
than anyone elses offer.
Markathon:Your paper The one thing you must get
right when building a brand deals with the most
dynamically changing channel of branding. Do you
think big data analytics can play an important part in
social media marketing?
Patrick: We made two points in that article. First,
marketers have overstated the role of social media in
advertising but understated its role as a source of
customer insight and as a way of improving customer
service. Even in the US, 90% of consumers
conversations about brands are offline, mostly face to
face. Even online, consumers dont like companies
invading their private space. There are some branding
and advertising opportunities, but theyre fairly
limited. The second thing we said is that all this has to
be embedded in your overall management of thebrand, which we illustrated using the framework of
our more recent book Beyond the Familiar: Long-
Term Growth through Customer Focus and
Innovation. This builds on Simply Better, putting
the conclusions into a practical management context,
with a strong emphasis on having an open
organization in which market insights including
things youd prefer not to hear flow freely through
the organization, reach the decision-makers and are
acted upon. Big data analytics will have a growing role
within this, not just for social media data.
Markathon:What are the key measures to making a
campaign go viral in the world of social media?
Patrick: Its difficult. The main principle is that you
need an idea that is so compelling that people will
pass it on. It should also be relevant to your brand
positioning and appropriate. An established brand
shouldnt do a stunt that goes viral but damages its
brand equity. As always, you need good execution.
And usually, you need a publicity campaign, typically
using traditional media and PR, to publicize it. Most of
the successful examples use humour. The best ones I
know are Blendtecs Will it blend? and TNTs Daily
dose of drama.
Markathon: What role can video ethnography play
in efficient design and implementation of marketing
strategies?
Patrick:The main benefit of video ethnography is that
it unobtrusively records what people do in their
natural environment, say at home or in-store. Thats
especially important if their actual behaviour differs
from their claimed or self-perceived behaviour. For
instance, most DVR owners think they watch far more
time-shifted programmes than they actually do and
rarely watch commercials. The reality is very different.
Video ethnography can also help explain behavior, for
instance, by showing viewing within the context of
other family members, perhaps with differing
programme preferences. Another advantage is that
the video clips are great for illustrating these
behaviours to a management audience. The main
downside is that analyzing the data properly is very
time-consuming so sample sizes have to be small.
Relatedly, I recommend that all managers, not justthose in sales, service and marketing, should have
direct customer contact in order to bridge the
empathy gap between managers and customers,
especially in some markets. This encourages customer
understanding and customer focus throughout the
organization, not just for marketing.
Markathon: How do you think neuromarketing can
redefine the process of getting customer insights?
Patrick: Neuromarketing, behavioural economics, big
data, online brand communities, metaphor elicitation
and all the other new ways of developing customer
Other new ways of developing customer
insights should mostly be seen as ways of
supplementing, not supplanting, traditional
market research.
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vartalaap markathon|january 2013
Be infinitely curious, always on thelookout for new ideas and
opportunities, but dont assume that
the latest thing is as powerful as its
proponents claim. Spend time with
customers as well as looking at data.
insights should mostly be seen as ways of
supplementing, not supplanting, traditional market
research. In a few cases, new methods do largely
replace old ones. For instance, online surveys and
brand communities are usually better, cheaper and
much faster than telephone or face-to-face surveys
and focus groups. But neuromarketing isnt yet at astage where it can really replace traditional research
methods in new product development, website
improvement or advertising evaluation. Instead, it can
provide additional insights and questions for further
testing. The main neuro methods at this point are eye
tracking, various biometrics such as heart beat and
skin conductivity, and EEG. Their main advantage is
that they provide continuous data and tap into fast,
automatic, subconscious processes. The limitation is
that the results are hard to interpret, although that
hasnt stopped some vendors from making some
strong claims that should, in my view, be treated with
caution. The dirty secret of traditional market
research is that it asks people to provide conscious
responses about behavior that involves a lot of fast,
subconscious, automatic processes, both cognitive
and emotional. For instance, from the time someone
sees a house or car to the time when they know if
theyd like to buy it is maybe ten seconds. Thats hardto research, but neuromarketing and other new
methods will increasingly help us do so.
Markathon:What are you working on now?
Patrick: I do corporate and conference presentations
and workshops on the messages in Simply Better
and Beyond the Familiar, to help companies
improve their ability to
do customer-focused
innovation. Im the
Chairman of Which?,
the UKs leading
consumer
organization. One of
its most exciting
projects is Right
Choice, the Indian
equivalent of
Consumer Reportsin the US and
Which? and Which? Online in the UK. I have a
visiting fellowship at Oxford University to work on the
future of public service broadcasting, especially the
BBC, in a digital world. Im involved in a number of
policy areas, especially the investment case for getting
people online, partly so that theyll be able to use
online public services. I work as a consultant and as an
expert witness in legal cases such as the current
dispute between Apple and Amazon about whether,as Apple claims, the term app store is a brand name
rather than a generic term. In addition to Which?, I
also do a number of other pro bono activities
including advising a fantastic project (CleanStar
Mozambique) to encourage Africans to switch from
charcoal to locally produced bio-ethanol as a cooking
fuel. If that succeeds, the health, environmental and
economic benefits will be huge.
Markathon:What would be your advice to our youngreaders who aim to become successful marketers?
Patrick:Read widely but critically. Always ask, What
evidence does the author have for what he or she is
saying? Be infinitely curious, always on the lookout
for new ideas and opportunities, but dont assume
that the latest thing is as powerful as its proponents
claim. Spend time with customers as well as looking at
data. Understand that the questions in marketing are
always much the same why would someone buythis, how much will they pay for it, how can we ensure
that they know about it and can easily buy it, etc.
but the answers are very specific to the particular
brand at that particular moment. So dont assume
that something that worked in one context will
necessarily work in another. Markets are
unpredictable and their response to significant
innovations is hard to
research, so try and use a
fast-cycle test-learn-adapt
approach. Make good
connections with
colleagues in finance,
operations, sales, etc.
Successful marketing is
about collaboration. Be as
evidence-based as
possible: remember the
words attributed to EdDeming, father of total
quality: In God we trust. All others must bring data.
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