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8/3/2019 Markathon October`11
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MARKETING MAGAZINE OF IIM SHILLONG VOL 3, ISSUE 4
MARKATHONO
C
TO
B
ER
11
Cover StoryDoes CSR really help
Build Brands?
Interview: Dr. Jagdish Sheth, Gouizeta B-school of Emory University
Interview: Anand Khurana, Business Head, HUL
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Dear Readers,
Customer engagement has become an integral element
of marketing for all companies today. They want to talk
to the customer, listen to the customers feedback and
act on it. The recent course I took on IntegratedMarketing Communications only reinforced the fact that,
brands today are emphasising a lot more on media that
enable a 2 way communication with the customer rather
than just broadcast media. These media, help companies
reach out directly and get first hand insights from their
customersCompanies want to have conversations with
FROM THE EDITOR to have a good relationship with the customer. TeamMarkathon is extremely grateful that Mr.Sheth took out
time from his schedule to give us this exclusive interview.
Our articles section has an article of how companies are
leveraging different media to understand what the
consumer wants and then deliver it to the customer in
exactly the way he desired. The other article about new
Marketing Channels for retailers describes the new
delivery mechanisms which are now being tapped by
retailers thanks to growing use of technology. We are
sure our readers will enjoy both the articles.
As always, do send in your feedback and suggestions at
Sit back and enjoy this edition!
Jitesh Pradeep PatelOur September 2011
Cover
is a way of giving back to the society, but it is also about
creating a good image for the brand. The line between
doing good and doing it for the sake of brand building
seems to be getting blurry. Greenwashing has now
become a common phrase for companies which do green
initiatives just for getting a positive image. In this
months cover story, weve tried to ask a simple question
Does CSR really help in building brands?. In the story, we
look at different companies and what CSR means to them
some of them who have really been successful in
leveraging CSR to their brands advantage and also some
who havent been so successful at it. We hope you enjoy
the story!
In this months Vartalaap we have with us Mr. Anand
Khurana who is the Business head - Out of Home (F&B
Services) & Modern Foods (Bakery) at Hindustan Unilever
Ltd. Mr. Khurana talks to us about how HUL is focussing
on its Out of Home division for increased profitability. We
are thankful to Mr.Khurana for taking time out to talk to
the Markathon team.
In our Vartalaap from the academic world, we have the
renowned Dr.Jagdish Sheth who is widely regarded as the
Father of Relationship Marketing. Dr.Sheth is currently
the Charles H. Kellstadt Professor of Marketing at the
Goizueta Business School of Emory University. He gives us
a wonderful interview about how important it is
their customers and convert these
conversations into actual
transactions. Being in the
customers mind is what everycompany is aiming for and there are
various ways they go about it. One
of the ways companies do this is
Corporate Social Responsibility. CSR
2
THE MARKATHON TEAM
EDITOR
Jitesh Pradeep Patel
SUB EDITORS
Gaurav Ralhan
Kaustubh Rawool
Rahul Mantri
Ritika Nagar
Sria Majumdar
CREATIVE DESIGNERS
Yashwanth Reddy Mandipati
Sana Parvez Akhtar
mailto:[email protected]:[email protected]:[email protected]8/3/2019 Markathon October`11
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CONTENTS
FEATURED ARTICLES
PERSPECTIVEBuilding Brands - Of the Consumers, By the Consumers, For the Consumers
MAYURESH KANVINDE, ROHIL MITRA |NMIMSNew Marketing Channels Driving The Retailers
ABHEEK TALUKDAR, ASWINI. R | FMS
COVER STORY
Does CSR really build BRANDS?
JITESH PATEL, SRIA MAJUMDAR |IIM S
VARTALAAP
DR. JAGDISH SHETH
CHARLES H. KELLSTADT CHAIR OF MARKETING, GOIZUETA B-SCHOOL OF EMORY UNIVERSITY
ANAND KHURANABUSINESS HEAD, HINDUSTAN UNILEVER LTD
WAR ZONE
EYE 2 EYE
Willcustomers see Suzlons P.A.L campaign as Greenwashing or can the campaign actually
engage the target segment?
SILENT VOICE
Titan's premium Swiss brand Xylys plans to launch a women's line
SPECIALS
BRAND STORYSANA AKHTAR
BOOKMARKSRIA MAJUMDAR
UPDATES
KAUSTUBH
4
8
20
12
2221
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Building Brands - Of the Consumers, By the Consumers, Forthe ConsumersMayuresh Kanvinde, Rohil Mitra | nMimS
In July 2006, HUL (then HLL) launched Indias first
community portal exclusively belonging to a brandThe
Sunsilk Gang Of Girls. The initiative was an instant
success with the number of members crossing the half
million mark within six months of launching. It was
HULs attempt to revive the Sunsilk brand. Today with a
member base of 7.5 lakh users (a mere 2.5 lakh users in
four and a half years), the success of Sunsilks brand
building exercise is debatable. But, what cannot be
denied is HULs early recognition of a marketing channel
Conversational Marketing - that is moving towards
becoming the trend for marketing and brand building in
2012.
The launch of Orkut in 2004 (2006 in India) and the rise
of Facebook and its ubiquity, paved the way for a new
kind of a marketing channel which we all know as
Social Media. Today almost each brand has its own
Facebook page which is liked by fans, where the
brand gets promoted
each time the target
segment logs onto
Facebook. But, not all
brands have
sufficiently leveraged
the true value of social
media. Social Media
have been extensively
used for advertising
and sales promotion.So much so that the
value of communities like
Facebook to marketers has been questioned as to
whether it is the right place to reach your consumer.
The regular argument is the fact that Facebook
advertisements have critically low Click-Through-Rates
(CTR), implying that people use Facebook solely to
socialize and not to find out or know about their brands
or products. Compared to this are the high CTRs of
search engines ads like in the case of Google Adwords;
rightly so because a person visits Google to find
something. However true the argument is, what the
perpetuators of this argument fail to realise is that
Facebook or other social media can be used as tools to
converse with the customer, make friends with the
customer, and listen to what the customer has to say
rather than to just tell the customer about their
products. Surely, people use Facebook to express their
views and to be listened to. Unlike traditional media
channels like television and print media, social media
provides this advantage of being a two-way
communication channel - a channel to build brands that
are of the consumers, by the consumers and for the
consumers.
Starbucks is perhaps the best example of how to
leverage everything that social media has to offer. Their
online portal mystarbucksidea.force.com proudly
announced on June 17, 2011that they had launched 150
ideas from a plethora of
ideas submitted by its
customers. My Starbucks
Idea is a simple community
where Starbucks customers
can submit their own ideas
about how Starbucks can
improve in all categories
ranging from their coffee tothe experience and
involvement of the customers.
These ideas are voted by other members of the
community and / or are selected by Starbucks idea
partners for launching. The progress on each idea is
updated regularly and most ideas are replied to. Typical
ideas from the 150 launched were:
An iPhone App to check on the balance on theStarbucks Card (loyalty card)
Opening a new store in El Salvador Reintroducing an old flavour of coffee
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Improvement in a chocolate chunk cookierecipe
Buying a Friend a Beverage Remotely throughFacebook
Critics of Starbucks argue that the entire crowd-
sourcing platform has been a failed project, as of a total
of 116100 ideas submitted so far only 150 have been
launched. But, the question to be asked is whether
Starbucks aimed it to be merely a crowd-sourcing
platform. What
Starbucks
has achieved through its idea
portal is what cannot be
achieved through traditional
advertising and promotions and
that is customer loyalty. Starbucks
customers feel that their favourite coffee chain is
listening to them, is considering their suggestions. By
involving the customers, Starbucks has created a sense
of belonging among them and that is enough for the
customers to keep visiting Starbucks. A long-term brand
loyalty has been established. Whats more? Through
the ideas submitted, Starbucks gets a free access to
customer insights, what consumers expect from them
a market research at zero cost.
Taking social media and
technology to further heights
is Nike. It has created a harmonious combination the
two, by using the runners iPod and technology built
into the Nike running shoe to measure and track
workouts. The workout information gets stored
automatically on NikePlus.com, where users can create
their personal profile, log their workout information
and share it with others, chat with other users, share
content and build relationships. Through NikePlus, Nike
was also able collect user data, without interrupting the
user experience of consumers, which was used to send
targeted communications to users and recommend
newer products based on their individual preferences.
The NikePlus platform is now taking the user experience
to a further level by providing goals and challenges
feature where users can set their training goals
online. Users can compare their running
goals and accomplishments with other users
and challenge them for specific milestones.
The portal also suggests potential running
partners to users based on location and
training intensity. The
platform thus allows
Nike to build a close
relationship with its
consumers by
supporting them to
improve themselves.
Through NikePlus, Nike
has managed to spark a
movement that brings
together people around
the globe united to one
another by a shared passion for running. The shared
passion always existed. But it is Nike that has leveraged
it through its exemplifying use of social media.
Over the past 25 years since its launch, Maggi has
emerged as one of the most
affectionate brands among Indian
consumers. A brand which has
probably grown larger than its
parent company Nestle and for all
the right reasons the emotional bond built over
generations of consumers. But, as Maggi approached its
25th
anniversary, it faced newer challenges with the
entry of strong FMCG players like HUL (Knorr), ITC
(Sunfeast) and Horlicks (Foodles). While the
competitors were aggressively advertising their newly
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launched products, Maggi resorted to taking its
emotional connect to the next level. Through the Me &
Meri Maggi campaign, Maggi urged its consumers to
tell their own story about what Maggi means to them
and where does Maggi picture in their life. These stories
were included in Maggis advertisements and also on
the campaign website meandmeri.in and the Meri
Maggi Facebook page, which has over 540000 fans.
Further, Maggi introduced three flavours which were a
direct outcome of the 30000 stories shared by Maggis
consumers. Though not everyone visited the Maggi
website to share their stories, what the campaign
achieved was that the role of Maggi in everyones life
was reinstated in the minds of all consumers.
Maggi further went on to launch the Guess the Taste
of mystery noodles campaign where limited edition
packs were sold across the country in packets marked
with a distinctive question mark design. More than
45,000 consumers have already contacted Maggi with
their suggested name for the taste.
And Maggi hasnt stopped there. The latest campaign of
Maggi further strengthens the emotional bond by
taking the Meri Maggi campaign further by saying
Kyun Meri Maggi itne saalon se sabke dil me hai?
(Why is My Maggi everyones favourite for so many
years?)
Successful Facebook Campaigns
The Most Popular Facebook Page
With over 34 million fans and
growing, Coca-Colas Facebook page
is the most popular Facebook page
(ranked 11 by number of fans)
among all brands world-wide. With a
product that is minimally
differentiated from its sole global competitor, Pepsi,
Coca-Cola is a brand that needs loyalty like no other. It
has successfully achieved it by differentiating itself by
associating itself with happiness though its global
Open Happiness campaign.
Coca-Colas true commitment to their fans on Facebook
is illustrated in the story of how the page came to be.
The page was originally created by two fans who just
loved Coke. When Coca-Cola came to know about the
page, rather than creating another official page, they
acknowledge the efforts of the creators and worked
with them to continue building the page to represent
the brand. They were able to leverage on the
connections that were already established with fans on
Facebook even before they were involved while also
demonstrating how much they valued customer
involvement and participation.
Today, Coca-Cola acts as any other friend that a
Facebook user has. The discussions initiated by Coca-
Cola are not just about the brand but about what the
brand stands for Fun and Happiness.
The Most Engaging Facebook Page
According to a study
released by Visibli,
wherein fan engagement
on Facebook pages with
more than 1 lakh fans
was analysed, Audi USA surprisingly emerged as having
the most engaged fans on Facebook. With over 3.8million Likes on the page, Audi had an average of 7,487
Likes and 292 Comments on their posts in April, 2011,
which certainly sets an example on how to design a
Facebook Page for a brand.
So then the question arises -What is Audi doing
differently from other brands? For a start, it isnt just
pushing out facts about their latest models, posting
videos from auto shows, and giving away free cars on
their Facebook page. On March 11th, Audi asked fans,Whats the best thing that anyone has ever said about
your Audi at the pump? The question triggered
engaging conversations amongst car enthusiasts and
provided a unique opportunity for Audi owners to share
their stories (capturetheconversation.com) bringing out the true
potential of social media.
When you think of
Harley-Davidson,
what is the firstthing that comes to
your mind? Well,
motorcycles for
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sure. But is it just the motorcycle? Or is it a motorcycle
on an open desert highway, with a rider with leather
boots and gear, and a rumbling exhaust that could
make a jet engine seem all too meek. Harley-Davidson
symbolizes rebellion, youth, freedom, and open
possibilities. Its an image created by the people
(smackinc.com).
Realising the strong cult that was inherently present
among its owners, Harley-Davidson initiated the HOG,
the Harley Owners Group in 1983. Its membership
restricted to owners of Harley-Davidson motorcycles,
along with a hierarchal structure of chapters ensures
that only the purest of loyalists have the most say in the
community thereby inculcating a strong sense of
belonging to the cult which would thrive through future
generations.
In 2001, the HOG community went online making it
easier for newer members to join, for members to stay
connected to their brand even when away from their
motorcycles and to connect with other members across
the world linked through the common thread of the
Harley-Davidson culture. Today the community boasts
of over 1,100 chapters and over 1 million chapter
members. The organisation of chapters allows the
members to meet with local riders through events,
rallies, support causes and road-trips as well as socialize
over the internet with their global counterparts. The
HOG site mentions some of the membership benefits as
road-side assistance, participation in events sponsored
by the company as well as by local dealers and a HOG
magazine consisting of HOG Tales of riding.
Because of HOG, Harley-Davidson has reached
benchmarking levels in consumer loyalty and brand
equity. Today, Harley-Davidson is in full alignment with
the dreams and expectations of the Harley-Davidson
owner because it was the Harley owner that dictated
what the brand stood for - in the true sense, a brand of
the consumers, by the consumers, for the consumers.
Trends of the future
According to a study conducted by TWI Surveys, Inc.,
spending on social media and conversational
marketing - albeit still in their nascent stage - will
surpass traditional marketing spend by the end of 2012.
Currently, 70% of respondents of the survey are
spending 2.5% or less of their communications budgets
on conversational marketing while 81% of survey
respondents said they will spend at least as much on
conversational marketing as traditional marketing by
2012.
A look at the current marketing strategies of prominent
brands in India and abroad suggests the trend is on the
rise. Be it Mahindras Spark the Rise or Airtels Har
Friend Zaroori campaign; the customer has now gained
centre-stage. The efficiency as well as effectiveness of
conversational marketing in building long-term brand
loyalty has been demonstrated successfully. Marketers
have to realise the underlying potential that social
media and conversational marketing provide. If not,
marketers would be tempted to shy away from these
channels in lieu of traditional channels. With social
media, the sky is the limit. But the question still arises
Do you realise it limitlessness?
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New Marketing Channels Driving The RetailersAbheek Talukdar, Aswini. R | FmS
Marketing has transcended a long way from marketing
1.0 to marketing 3.0, from being product centric to
people centric to value centric. So have the various
means and channels of reaching your customer. Earlier
the customer, walked up to buy, now, the retailers reach
out to them, and be present at the right time, right
place and to the right people. This opens door to new
channels of marketing, not disparate from the
traditional methods but new parallel ones to support
the traditional practices and enhance the brand
presence.
Consumer Trends and New Brand Experience
Expectation
Gone are the days when one could sell merely with
convincing TV ads and celebrity endorsements. The
consumers of today present a big challenge to the
business. They lead a fast moving on-the-go life and are
always Time starved. The science has made everything
just a click-away for them, and people are now pro-
technology unlike yesteryears when the society was
resistant to any new technology. The tech-savvy
customers now have access to ample information
everywhere about everything. The web has now
become an interactive platform; people not only get
information but also share their experiences. This has
increased the customers interconnectivity immensely.
The retailers cant hush any bad experiences or flawed
products. The awareness about any product/service is
so high that they are conscious and expect worthwhilevalue. Customers now want the special treatment and
need to be feel like kings and queens. The need of the
hour isnt mass marketing rather a personalized
experience is what is needed.
The New Set of Touch Points
The new channels powered by digital technology
present the retailers with vast array of new touch-
points for engaging with consumers and creating a
differentiated brand experience.
New channels, such as mobile and social media, present
retailers with new ways to connect with and engage the
consumers. These new channels are not necessarily
about driving transactions; instead, they enable
retailers to transform the customer experience and
engage with consumers more directly and in entirely
new ways.
To successfully navigate these new channels requires
retailers to:
Understand their customers and eachsegments cross-channel needs and shopping
habits
Achieve brand alignment and consistencyacross channels to present one view of the
retailer while tailoring experiences by channel
where appropriate
Understand how to leverage the strengths ofeach channel to create a better overall brand
experience
Drive loyalty and deliver a consistent brandexperience by integrating front-end and back-
end systems, data and services across all points
of contact
Retailers, who engage with customers to provide a
seamless, integrated brand experience across channels
and meet customers expectations around
transparency, personalization and collaboration, stand
to reap significant benefits. Not only does the brand
exposure of the retailers improve through customer
touch-points; it helps retailers in increasing their
revenue base due to increased traffic and loyalty of the
retailers product, in turn improving the employee
productivity and satisfaction.
The advantages of reaching customers by the use of
newer channels are summarized.
Revenue Boost: The quintessential element ofany retailer is revenue generation. Through the
use of innovative and customer focused
channels, the increase in the number of
customers will imperatively improve the
balance sheets of any retailer.
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Traffic Opportunity: No retailer can improvetheir revenue without the increase of the
number of customers. By providing
everywhere access and engaging in a 24/7
conversation with customers, traffic in all the
channels in which the retailers performs in will
increase boosting the revenue.
Loyalty Increase: Customer loyalty is a toughthing to attain and by providing a seamless,
personalized experience across all channels,
retailers can maintain that loyalty by providing
focused and value products.
Employee Productivity and CustomerSatisfaction Rise: Operating in different focused
channels will better the employee productivitythrough increase of visibility in case of
inventory, product info, critical tasks, long lines,
business performance, etc. Focused products
will indefinitely improve the customer service
and satisfaction.
Instantly on using the 2D scan on the net, she is able to
view the recipe, watch a cooking video of the chicken
biryani, talks to a live expert about the cholesterol & fat
level of the product and instantly receives a customercare call informing of the stores it is in.
The Changing Retail Experience Example: Mobile
Marketing and Sales Support
The power of reaching the target customer using
innovative channels can be seen from the following
example. A certain housewife, Deepi on her way to the
daily grocery notices a new ready-to-eat chicken biryani
advertisement on the street and photographs the 2D
Barcode attached.
After she is satisfied with the
product and reads about the rave reviews on
Twitter/Facebook and other social media sites, she goes
to the store to buy the product. She scans her digital
loyalty card at the retail store, which gives her discount
schemes running in the store. The discount available
through the advertisement is procured using her m-
commerce mobile wallet, she pays the product and
recieves a gift
coupon from the
store.
View Recipe and save to
MyRecipe
View Streaming Digital Content
Receive a delectable offer
Payment for hergroceries by
scanning her digital
gift card at retail
shop
Deepi scans her
digital loyalty card
at retail shop
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Finally, satisfied with the product, she rates the
product on various social media websites. She also joins
the facebook page and discusses the various recipes
that she had tried. All in all, it is a win-win situation for
both the customer and the retailer.
Unique Examples of Retailers Benefitting from
Innovative Channels
Whole Foods Market
With over 1.8 million followers on its account page and
over 3,000 followers on twitter account, Whole Foods
engage a 2-way dialogue with consumers about topics
that are important to them the environment, organic
products, and product recommendations.
Missions App: The Mission App gives consumers an
opportunity to explore new products, learn about
healthy eating and engage in a conversation in their
social networks. Consumers complete steps of varying
difficulty and earn badges through their Missions.
Users can access over 2,000 recipes, store information,
store specials and a calendar of events for their local
store and advice on cooking, nutrition, green living and
food storage.
Target Corporation
It was the first retailer to offer the ability to scan a bar
code directly from a mobile device at any store
nationwide in the US and also initiated mobile coupons
which let consumers redeem discount offers by
scanning a 2D bar
code at the point
of sale.
Target customers
can access their
Target Mobile Gift
Cards, view online
assortments,
check product
availability and store locations, manage their Target gift
registry and lists and browse the weekly ad all on their
mobile phones. Target also offers mobile payment
through a consumers mobile device.
Addition of the
recipe on various
social media
Rating
Recipes on
Whole Foods on
Target Retail 2D Barcode POS
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Innovative Channels Indian examples
VOLKSWAGEN INDIA
The innovation in marketing channel hasnt spared
anyone, even the big automobile players likeVolkswagen are introducing campaigns like Innovations
for everyone
and Think Blue to
have a long term
approach to building
loyal community
by being present
across all major
social media
platforms.
Volkswagen has cashed
on the new feature of
Linkedin, the
company page where they have already received a
commendable 2772 recommendations on their 7 listed
car models. This could generate sales and bulk orders
for them.
The Future of Reaching the Customer
Best Buy came up with a unique
channel to give customers the
ultimate experience. Their idea was
of providing Mobile Point of Sale and
Manager Dashboard on iPod Touch.
Employees in nearly 27 Best Buy stores can search for
product information and check out customers using a
mobile point-of-sale system. Every department has an
oversized barcode plastered on the adjacent wall.Customers can scan the barcode by stores mobile app
and download coupons or advertisements on the
handset. It helped in
eliminating paperwork
and cost involved in
buying POS hardware.
Key Challenges to Retailers
Siloed Metrics: Major problem for all retailers is that
customer information is spread across different systems
driving a lack of knowledge on customer engagement
with the brand across segments. The lack of common
customer experience metrics becomes prominent in the
view that many retailers need customer behavior
information to understand market.
New Channels Require New Model:Nowadays, Retailers
make the mistake of using every channel alike like Face
book or YouTube end up being copies of the website.
New channels require connecting with consumers in
new ways and understanding how customers want to
use each channel. Thus, a lack of channel differentiation
demands a new channel model.
Platform Integration: Though technology like CRM and
SAP has made it much easy for retailers to keep track of
all the customer data, companies still face issues in
integration of existing channels with newer channels.
Rapidly Evolving Technology: With advent of changing
technology, adoption of marketing channels isnt
sufficient enough to deliver the one-to-onepersonalized experience which the retailer seeks to
achieve.
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Co ver sto ry ma rkatho n | ap ril 2011Co ver sto ry ma rkatho n | aug ust 2011
Shubhajit Lahiri | Somjeet Behera
14
Does CSR really build BRANDS?
Co ver sto ry ma rkathon | oc tober 2011
JITESH PRADEEP PATEL | SRIA MAJUMDAR
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Co ver sto ry ma rkatho n | ap ril 2011
Coming from the founder of Tata
Group, the most sociallyresponsible corporate entity in
the country as per Times
Foundation survey, this quote
helps us put CSR in perspective.
In a world where CSR is no
longer a choice but a necessity
for business; companies seem to
forget that the foundations of
CSR can be strong only when it is
built into the fabric of the
organization. Neither is CSR
altruism, nor is it a fad- a survey
of business leaders in the US
found that 8 out of 10 CEOs
believe that CSR helps their
bottom line and 75% say that
people have a right to expect
CSR from firms. Even the
Economist editors recently
admitted that CSR has moved
from the domain of do-gooders
to mainstream. It is accepted
today that CSR cannot sustain
when it is treated as charity, it
requires modifying business
models to achieve the triple
bottom line of people, planet
and profit.
While Corporate Social Responsibility is the
need of the hour for sustainabledevelopment of the environment and
societies across the globe, it is even more
relevant in our country given the gross
inequalities and the fact that development is
still in the initial stages. CSR in India is marred
by skepticism from intelligentsia and
implementation challenges at the grass roots.
To top it, there is no authentic data availableon the kinds of CSR activities, coverage,
policy etc. While evaluating the success of
the CSR activities itself could be a whole
article, we try to evaluate how CSR is helping
organizations in building their corporate
brands. The consumer empowerment
movement across the globe has made cynics
of all customers, and many fear that CSR is
just window dressing. Through this article,
we have tried to understand what makes CSR
a successful brand campaign.
When we started writing this cover story, the
lines between ethical consumerism,
sustainable marketing, green marketing, CSR,
Business Ethics & Corporate Citizenship
seemed to blur. We were forced to riseabove the jargons and focus on what CSR
really means to companies and to the
stakeholders. We explore definitions of CSR
in our next section, but for the purpose of
our article we have considered all activities of
the company which help society and
environment, and in turn affect the
companys image and the corporate brand.
We do not claim to be more unselfish,
more generous or more philanthropic
than other people. But we think we
started on sound and straightforwardbusiness principles, considering the
interests of the shareholders our own,
and the health and welfare of the
employees, the sure foundation of our
success.
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Defining CSR
The term social responsibility was proposed in the U.S.
by Frank Abrams, Chairman of the Board of Standard Oil
of New Jersey in 1951, in a statement about the duties
of executives to society. It gained a following with the
publication two years later of the Social Responsibilities
of the Businessman by economist Howard Bowen who,
having surveyed the consequences of laissez-faire
economics in the 1920s
through to the Great
Depression, concluded that
business had obligations to
society over and above
creating jobs, paying taxes,
and obeying the law.
Corporate Social
Responsibility started off as
charity with roots in ethics.
Organizations had surplus profits, and some leaders,
who were philanthropists, chose to distribute their
wealth among the not so privileged. Then globalization
happened, and the world became a smaller place with
sourcing, production, consumption of the same
product spread across multiple continents.Businesses realized that the only way to
grow was to help the consumers grow
with them, and a more collaborative
development model was employed. On
the other hand, rapid environmental
degradation led to concerns about
sustainability of our planet- leading to
greater customer consciousness. Also,
various Enrons of the world forced
companies to focus on ethics. Suddenly, it
was not uncommon to see capitalists invest
in social and environmental upliftment
and abide to ethical standards,
even build business models which
led to betterment of society and
environment. While CSR started off as
some leaders looking at the triple bottom
line, today it has become a qualifier.
The World Business Council for Sustainable
Development in its publication Making Good
Business Sense by Lord Holme and Richard Watts, said
Corporate Social Responsibility is the continuing
commitment by business to behave ethically and
contribute to economic development while improving
the quality of life of the workforce and their families as
well as of the local community and society at large.
While there is no universally accepted definition, the
key issues in CSR are accepted by all - environmental
management, responsible sourcing, stakeholder
engagement, labour welfare, community relations,
gender equality, good governance and anti-corruption
measures.
We see companies engaging
in Corporate Citizenship for
multiple reasons- reputation
and brand building,
competitiveness, risk
management, enhanced
access to capital and markets,
increased sales and profits,
operational cost savings,
improved productivity and quality, efficient human
resource base and enhanced customer loyalty.
Undoubtedly the greatest motivator for a company to
go in for CSR is reputation and brand building, and
surveys corroborate this conclusion.
In the context of measurement of CSR, the ISO
26000 by the International Organization for
Standardization is interesting. This standard
offers guidance on socially responsible
behaviour and possible actions. However, in
contrast to ISO management system
standards, it is not certifiable. CSR rating
agencies have sprung up across the globe,
and demand for non-financial measures of
value creation has increased. Social accounting,auditing and reporting have emerged as
disciplines of study. Yet, it would be a
mistake to believe that CSR is only about
compliance to standards, laws and
indices.
Some companies have managed to do CSR and
build brands. Some have done CSR only to be
labeled as window dressers and green washers.
And for some, CSR has had no impact on brands. In thenext section, we examine some global as well as Indian
firms which have managed to walk the talk.
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Success StoriesReputation Institute, an International Organization, has
tracked how CSR ratings affect the companys
reputation and brand. In the 08 and 09 studies, they
discovered that the CSR index
predicted 40% of overallreputation. In the Indian context,
the Times Foundation survey
found that TATA Group (67
per cent) was the numero uno
company with active CSR initiatives, distantly followed
by Infosys (13 per cent), ITC (12 per cent), NTPC (11
percent), Anil Dhirubhai Ambani Reliance Group (10 per
cent), Ambuja Cement (9 per cent), Microsoft (7 per
cent), Wipro, BILT and L&T (6 per cent each). The
findings of the survey place education, health andenvironment as three of the most popular areas of
intervention for companies as part of their CSR
initiatives. Globally however, environmental issues
including climate change are the most popular
investment areas for CSR.
Organizations like Body Shop, Ben and Jerrys,
Patagonia have been cases studies in Business Schools,
highlighting the corporate citizenship initiatives of these
firms. These efforts have led to their success, and finallytheir take over (in many cases) by mainstream
companies. The top firms in CSR in US context today
include Walt Disney, Microsoft, Google, Honda, Johnson
& Johnson and Pepsi. However, in this section we focus
more on Indian success stories, as we believe the Indian
socio-cultural context is quite different.
No discussion on CSR in the Indian scenario can be
complete without the Tata Group. A group which has
become synonymous with trust and ethics, and doinggood for the community- the company has achieved
what many firms would kill to get. Consumers trust the
brand and anything which has a TATA to its name must
be honest and true. In this context, it is noteworthy that
even the Tata Group which traditionally never
advertised its CSR, is now doing the same. The Values
Stronger than Steel campaign, highlights how Tata
Steel, a Tata Group company has always focused on
ethical practices and employee and society
development. Then there are brands like Mahindra
Group, which have only recently started with massive
CSR initiatives globally such as the RISE campaign.
This initiative not only aims to tie together all the
Mahindra entities, it also shows that the brand is
becoming more socially conscious. Overall, the FMCG
sector seems to lead CSR initiatives with ITCs E-Choupal
and HULs Project Shakti. From being a cigarette mogul,
ITC is now known for building public privatepartnerships, social and farm forestry, reviving Indian
Classical music and the e-Choupal initiative. Needless to
say, consumers admire the company for its
sustainability efforts. ITC is also one of the few Indian
firms to come up with a dedicated Sustainability Report
year on year, and they are GRI - G3 Compliant
Application Level A+. On the
environmental front, the firm
is carbon positive for five years
in a row, water positive for 8
consecutive years and waste recycling positive for last
three years. ITC, unlike the Tata Group has never shied
away from broadcasting its CSR initiatives. Be it PR or
advertising campaigns such as Responsible Luxury for
ITC Hotels, the claims are always in your face. In the
long run however, we feel that the authenticity of
Tatas CSR cannot be matched by aggressive
advertising.
HULs success in reaching out to women self-help
groups across the country, and giving them a
sustainable livelihood source has been so successful
that the model has been taken to Srilanka and
Bangladesh. Its not surprising then that HULs Small
Actions, Big Difference has been translated to 3 of the
top 10 brands in India being HUL brands. Coca Cola
(another brand which has a dedicated sustainability
report for India) focuses on water stewardship;
sustainable packaging, energy management, climateprotection, solid waste management etc. and this had
led to greater brand recognition and increased brand
equity. Coca Cola India has won the Golden Peacock
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Global CSR Award for 2009 for two consecutive years in
recognition of the companys water
conservation/management practices and community
development initiatives. The facts that such awards
have come to exist, again prove the point that brands
are being built by CSR.
These are some brands that have gained in their
mainstream business due to their CSR focus. Brands
continue to shift towards CSR and CSR spends have
increased. More importantly, CSR discussions are now
imperative in the board room. CSR helps build brands,
but only when brands live up to their promise. Green
washing and window dressing is severely punished in
this connected world, and there are other brands which
havent really been able to cash in on the CSR hype
despite having done good work in this field. We explore
some of these organizations in our next section.
CSR: Not always building brands!
Today, CSR has become the mantra for every
organization in the world. It is next to impossible to find
a company which doesnt do CSR as part of their
activities. Everyone has a Sustainability & CSR tab on
their website, everyone talks about it yet there are
companies which are unable to connect with the
consumers based on their CSR work. These are
companies which have done quite a bit of CSR but it
hasnt contributed in building their brand. These are
companies which customers
dont associate with CSR, but are
yet strong and powerful brands in
themselves.
PepsiCo India is one such company. Their
emphasis on sustainability is evident
from the vast amount of work they have
done in India ranging from community
development, water replenishment, and
waste management and partnering with farmers.
PepsiCo India has spent over $11 Mn in the years 2008-
10 for their CSR activities in India. Despite this, the
Pepsi brand in India is not viewed as one which is
socially responsible. There are instances where PepsiCo
has suffered because of being depicted as a Multi-National Corporation which is exploiting the resources
in India especially water. PepsiCo has come with
labels on their packaging to dispel the myth but to no
avail. It also has an exclusive website which details out
the various steps PepsiCo has taken for water
conservation and how it has emerged a water positive
organization. The Pepsi brand is seen as a youth
oriented one signifying freedom and a slight streak of
rebellion among the younger generation. Over the
years, its communications have been consistent to this
theme and it has therefore emerged as one of the
strongest brands for the 18-25 segments. This could be
one reason that the social responsibility aspect is never
really connected with Pepsi. Their positioning for the
brand doesnt gel with initiatives like water
conservation and it is in cases like these that CSR fails to
propel the brands success. There is one more way of
looking at this; it might turn out i.e. the true CSR
which the company continues to do despite gaining noobvious brand benefits out of it.
The case of Reliance Industries as an organization is
something similar. Their websites lists out a myriad
number of programs through which it has contributed
to different spheres of health, infrastructure, education
development and also environment protection. The
public perception of Reliance though is that of a
ruthless corporate entity which doesnt give back
enough to the society. The question then becomes, isReliance not doing enough CSR? Or is it not marketing
its CSR as well as other companies is? This is a pretty
dicey question and the answer probably lies somewhere
in between. The judging of CSR as already been
discussed before has become a matter of
great debate. Reliance Industries has won
a lot of awards at the corporate level for
their social work but the general public is
more or less unaware of these
developmental actions. Reliance
Industries majorly operates in the Oil and
Gas segment which is itself viewed as a
great threat to the environment and
ecosystems. The CSR reports and work take more
prominence in this industry because companies are
desperate to break the mould of being called a
polluting organization and want to be seen as a green,
socially conscious entity. British Petroleum was ranked
in top 3 in the Sustainability index on Dow before the oil
spill happened and all its work came to nought. These
are problems companies have to deal with because
they work in an inherently risky industry which makes
humungous amounts of money.
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The examples conclusively establish the fact
that CSR does have a significant impact on
brand value of the organization in most of
the cases. The dilemma is that, whether it
was success of the CSR activities themselves
or the marketing of these CSR activities. It
wont be long before the consumer realizes
the difference between CSR and windowdressing, and that will be when the true
impact of CSR on brands will be realized.
Challenges
CSR has evolved to become more of a necessity than an
option. Weve seen how it is being used to build the
brand value for an organization. There are still many
challenges to overcome before it becomes a two way
process. The two way process; actual CSR work being
done rather than just reports and window dressing and
this work benefitting the organisations image in the
long run.
Government Policy:The Government Policy in India with regards to CSR is
pretty lax. The policy could empower private
organizations to work more closely in conjunction with
public ones to reach the grassroots of the rural
communities. For this, the policy first has to address the
working of the public bodies. The Governments policies
have
to move away from the myopic view of CSR being a
donation driven activity and use it more as a
participative tool. The encouraging point to note is that
the policy has ensured that there is enough number of
Public Sector organizations which have come up trumps
in implementing CSR initiatives.
CSR in Small and Medium enterprises: SMEs have
typically not been involved in CSR activities. This has
been seen as the responsibility of the big corporate
houses. The Government can try and incentivize CSR for
the SMEs to set the ball rolling and this in turn will have
a major impact on Indias development since the
number of SMEs and their potential impact would be
significantly high in India.
CSR Metrics:The fact that CSR is part of every companys corporate
agenda has made sceptics out of the normal consumer.
When all companies come out with Sustainability
reports which look more and more similar each year, it
is difficult to pinpoint the ones which are doing the
actual work and other who are just talking about it. The
need to identify metrics which make it easier to pick out
the genuine work is essential but remains an unsolved
issue
Disparate Brand Identities:In some cases, though the companies indulge in CSR,
their brand is such that it is disparate with the whole
concept. The whole idea of socially conscious might not
fit in with how strongly the brand conveys its other
personality traits and CSR doesnt become a significantcontributor. This is more of a marketing problem, for
the company to figure out which activity will fit in with
the brand image and bank on this to propel CSR to
prominence.
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AnInterview with Dr. Jagdish SHethCharles H. Kellstadt Chair of Marketing, GoiZueta B-school of emory university
Markathon: You went to the US for an MBA from the
University of Pittsburgh. How did you get interested in
consumer psychology? Could you share some key
insights in this field with our readers?
Mr. Jagdish: In my MBA class, I learned several theories
of motivation, including Maslow's theory of need
hierarchy. This led me to studying what motivates
consumers and why consumers become loyal to a
brand. What I discovered is that consumers, over time,
reduce choices through learning and feedback from the
purchase and usage experience; and eventually become
loyal to a given brand. They buy based on habit often
learned at a very young age for products such as
toothpaste and cereals. Also, they do not consider
more than three brands in any given product category.
This was contrary to prevailing belief in economics that
consumer choose logically and not psychologically by
evaluating difficult choices in a rational manner.
Markathon: Emerging Markets to Define Marketing
read one of your recent interviews. It has been said
that India is a country where value conscious
thriftiness coexists with experiential indulgence. What
is your take on this in the light of your statement?
How can companies better understand consumer India
and in turn bring forth a new definition of Marketing?
Mr. Jagdish: You are very right that Indian consumers
are very value conscious. However, there are three
reasons why the same consumers are also engaging in
experiential indulgence. First, they are more aware of
new experiences such as visiting the seven wonders of
the world including Taj Mahal, going on safari and
cruises as well as attending meditation camps. Social
vartalaap ma rkathon | oc tobe r 2011
Dr. Jagdish Sheth is a renowned
scholar and world authority in the
field of marketing. His insights on
global competition, strategic
thinking and customer
relationship management areconsidered revolutionary. He is
the Charles H. Kellstadt Chair of
Marketing in the Goizueta
Business School at Emory
University. Professor Sheth has
published more than 200 books
and research papers in different
areas of marketing and business
strategy.
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media and cable channels such as Discovery and Animal
Planet have increased public awareness. Also, many of
their friends, classmates and family members who have
settled abroad and their children are in touch with one
another. Second, consumer aspirations are rising to be
more contemporary and they experience foreign
cuisines such as Italian, Chinese and Thai, as well as
Domino's Pizza and McDonald's. This is also true about
fashion, cell phones and consumer electronics. Finally,
there is new affordability. The wages of service workers
and professionals have risen sharply. This enables them
to experience small luxuries in life. Therefore, the new
definition of marketing is "Luxury for the Masses".
Markathon: In the current scenario where loyalty
programs are a dime a dozen, how can companies
ensure customer loyalty and in turn customer
retention? What are the new trends emerging in this
area?
Mr. Jagdish: Loyalty programs work well only if the
product or service experience is exceptional. This is
true across all services ranging from airlines to cell
phones. It is also true for retails stores, hotels,
restaurants and coffee shops. Therefore, the best way
to retain customers is consistent and superior customer
experience. The new trends in loyalty programs are to
use social media and product experience to generate
customer cult. The best examples today are iPhone and
iPad and stores like Apple stores.
Markathon: In your book Chindia Rising, you speak
about the shift of the pivot of businesses from the
Western world to India/ China. How do you think
Indian Managers can train themselves to become
global leaders? Where is the Indian Education System
lacking in this aspect?
Mr. Jagdish: The necessary foundation for Indian
managers to become global leaders is to have a global
mind set. Most managers, all over the world, are
usually ethnocentric. Indian managers are no
exception. The best way to increase global mind set is
to encourage them to manage businesses abroad
especially in non-English speaking countries and
cultures. It is not enough just to visit. You must have
deep immersion in other cultures and customs.
With respect to the education system, there are several
options. First, make study abroad mandatory. This is
almost universal in all Executive MBA Programs which
include one to two weeks of overseas education and
learning. Second, invite foreign students to be part of a
cohort. The ideal proportion is one third of the total
student population; and they must come from different
cultures and countries. However, I believe the most
transformative option is to insist on Indian faculty to
teach and research in foreign countries. In other words,
what we need is a Faculty Abroad program in addition
to student abroad programs.
Markathon: In your illustrious career as an
academician, professor and consultant; what has been
your greatest learning? What continues to drive you in
the field of marketing?
Mr. Jagdish: The greatest learning I have experienced
over five decades as an academician, professor and
consultant is that the best way to learn is to teach.
What continues to drive me after 50 years is passion to
learn about new areas. This has ranged from consumer
behaviour to multivariate statistics to competitive
strategy to relationship marketing. My latest passion is
impact of emerging markets on marketing.
Markathon: What would be your advice to students in
business schools, looking to make a career in
marketing?
Mr. Jagdish: I have three pieces of advice. First,
learning is a lifelong journey. It does not stop with
graduation. Therefore, make sure you are learning new
knowledge while you are working. This will be more
and more critical as the half-life of knowledge declines
sharply. Second, the best way to learn is to teach.
Therefore, find ways to teach at a nearby college or
school. If nothing else, get invited to make
presentations in your organization's training centres.
Finally, learn to give back to the society. Please
remember how fortunate you are to be blessed by your
parents, your teachers and your mentors. They made a
difference in your life. Think of what you can do to
make a difference in the lives of others.
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AnInterview with Anand KhuranaBusiness Head, Hindustan Unilever Ltd.
Markathon: You have had a long and illustrious career
in marketing in the FMCG industry, with stints both in
India and abroad while working for HUL. What are the
key differences in the competitive scenario in the
industry in India and abroad? What are the differences
in terms of marketing?
Mr. Anand: Marketing quite simply is aboutunderstanding the consumer, his/her stated & unstated
needs & developing & deploying a marketing mix
(Brand Proposition, Product, Communication & Go-to-
Market strategy) to fulfil that need. This basic premise
remains the same everywhere in
the world. However, the nuances of
consumer tastes & preferences
demand fulfilment options with
respect to the retail store
landscape, media evolution &
consumption habits could differ by
region/ country as much as they do
between Mumbai &
Muzzafarnagar.
Markathon: You have worked in
many diverse roles in HUL. What
has been the most challenging task
in your career till date?
Mr. Anand: HUL has so many different categories & a
culture of moving people from marketing, sales to
business operations which makes the experience very
broad based & large. Its almost like having worked in 5-
6 different companies.
I have been lucky to have moved across sales,
marketing, business operations in both the India
business & International operations. Each stint has been
very rewarding with different challenges across my tints
in brands, exports & key accounts and business
leadership.
Markathon: HUL has recently opened Bru World Cafs
in Mumbai. What spurred the company to enter direct
retail for coffee? When can we expect the pilot cafes
to spread to other cities?
Mr. Anand: A Caf a logical extension for our coffee
brand as the segment presents a great opportunity for
not just consumption but also building brand
experience & premiumization. It helps us move up the
value chain from product to experience delivery. This is
being done currently on a pilot basis
Markathon: Can you tell us about HULs
plans in the OOH (Out of Home) segment
in the next 5 years? What is the strategy
that you are looking at for Modern
Foods?
Mr. Anand: More & more consumers are
spending more & more time out of home,
at Work (offices, colleges) Wait (at
airports, railways) & Play (Malls, Multiplex,
Leisure). This creates a large consumption
and Brand experience opportunity. We
have built a robust Beverages Out-of-
Home business in the B2B space with our
Lipton & Bru Tea/Coffee vending services,
since 2002 & are look to continuing to scale that up
rapidly. In addition we have entered the consumer OOH
space with the Bru caf and Swirls ice cream parlours.
Modern Foods is a very large player in the Bakery
Category which is very large. Unlike other FMCG, Bread
is a perishable product & requires decentralized
manufacturing & a daily distribution system. Modern as
a brand has a lot of equity & we have driven aggressive
growth by rejuvenating the Brand by making the
packing more contemporary, introducing a lot of new
products like kream rolls, chappatis, cookies etc. Our
strategy is to continue to leverage our strengths in Daily
distribution & Bakery technology to grow the business.
vartalaap ma rkathon | oc tobe r 2011
Mr. Anand Khurana is currently the Business Head of Out of Home (Food & Beverage Services) and Modern Foods
(Bakery) at Hindustan Unilever Ltd. He has a rich experience of 14 years with HUL and has worked in Modern Trade
Channel, New Business Development, Key account management etc. He has also been the senior brand manager for
hair care, responsible for brands of Clinic All Clear and Nihar.
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Will customers see Suzlon's PALS campaign as
greenwashing, or can the campaign actually
engage the target segment?
dark cloud created by the industry. It indicates the
increased awareness among the corporate top honchos
about the rapid environment degradation and their
changed focus towards achieving a strong triple bottom
line performance by targeted efforts to promote business
growth in a sustainable manner.
Quite often, however, these campaigns are just a
marketing gimmick of firms having more important
hidden agendas such as gaining more recognition,
increasing the recall value of the brand. Addressing social
issues remains merely a by-product of these campaigns.
Consider Suzlons latest campaign for example; although
the company is trying to project itself as a firm
committed to ensuring clean air and thereby protecting
the environment and the eco-system, it has recently
been accused of causing potential hazards to
environment and natural resources in Saurashtra. It was
also accused of seizing lands of tribals in Maharashtra at
throwaway prices and subsequently selling it to
celebrities. Even the FMCG giant HUL, whose Surf Excel -Do bucket paani bachana hai campaign is creating buzz
in the country, has been charged with accusation of
causing mercury pollution in South India. Sadly, there are
many more such examples.
Today, customers are becoming increasingly aware about
these deceptive greenwashing campaigns and hence
are unlikely to yield to accept Suzlons claims unless the
firm starts walking their talk.
mindset of an individual and not the age. IdentifyingIndia as one of the emerging markets for wind power,
Suzlon is trying to position itself as a company
providing renewable energy rather than a
manufacturer of turbines. Following the trends of
other companies (Idea, Nokia etc.), Suzlon is
launching this campaign for the betterment of the
society but at the same time, this has a hidden
objective which is purely business in nature.
For an average consumer who had been riddled withso many of these similar campaigns ( Ideas use
mobile save paper campaign, Nokias Planet ke
rakhwaale to name a few) this move would come
across as just another multinational trying to project
themselves as an environment friendly firm. Although
it would not be possible to identify Suzlons motives
behind this campaign, one conclusion would be that
all they require is recognition. Tomorrow when they
move into the fast growing Indian wind energy
market, they should be recognized by the consumers.
Calling this effort a greenwashing marketing
strategy would be going a bit too far as their facilities
at One Earth have been certified with the highest
levels of green building certifications and their
methods of generating power from wind actually
makes the air a bit cleaner. But at the same time,
trying to generate buzz about the company using the
green angle would come across to the consumers
as unappealing due to the clutter of companies taking
this route.
Topic for the next issues Eye to Eye: Is Tata Indicoms being merged into Tata Docomo right for
Tata Teleservices?Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is
15th
November 2011. Include your picture (JPEG format) with the entry.
Apoorv Vaidya
IIM S
The recent P.A.L.S. (Pure AirLovers Society) campaign
launched by Suzlon, a leading
wind power company, is one
among a long list of Corporate
Social Responsibility campaigns
initiated by various organizations.
Having such a long list would
normally be a silver lining to the
Suzlon, one of the worldsleaders in the wind energy
sector has come up with a
new brand campaign called
P.A.L.S (Pure Air Lovers
Society). For the first time,
this campaign is targeted at
the youth, especially the
urban youth, although youth
is ust a term to define the
Greenwashingcampa
ignsofcompaniesarenot
hingmorethanmarketing
gimmicks
ThoughSuzlonactu
allyemploysgreenmethods,thecampaignisana
ttempttogainrecognition
Sarat Gopinath
GIM
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Silent VoiceLAST MONTHS RESULTS
Theme: Titan's premium Swiss brand Xylys plans to launch a women's line
WINNER: Ritika & Imtiyaz | Welingkar, MUMBAI
Congratulations!!!They receive a cash prize of Rs 500!
Articles are invitedBest Article: Abheek Talukdar, Aswini. R | FMS
They receive a cash prize of Rs. 1000 & a letter of appreciation.
We are inviting articles from all the B-schools of India. The articles can be specific to the
regular sections of Markathon which includes:
Perspective: Articles related to development of latest trends in marketing arena.
Productolysis: Analysis of a product from the point of view of marketing.
Strategic Analysis: A complete analysis of the marketing strategy of any company or an
event.
International Column: Articles covering latest marketing trends, innovative practices,branding strategies etc. in the global perspective. Apart from above, out of the box
views related to marketing are also welcome. The best entry will receive a letter of
appreciation and a cash prize of Rs 1000/-. The format of the file should be MS Word
doc/docx.
Were inviting photographs of interesting promotional
events/advertisements/hoardings/banners etc. you might have come across in your daily life
for our new section The 4th P.
Send your self-clicked photographs in JPEG format only.
NEXT THEME FOR SILENT VOICE: Wipro's re-launch of the newly acquired soap Aramusk
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Brand Story: LaysSana akhtar | IIM S
When salesman Herman W. Lay opened a snack food
operation in Nashville, Tennessee way back in 1938 andstarted making potato chips, little had he imagined it
would go on to become the worlds largest and
favourite snack food brand. The Lays Lay Lingo
Company later merged with the Frito Company to form
Frito-Lay Inc. In 1965, Frito-Lay merged with the Pepsi-
Cola Company to form PepsiCo, Inc.
Lays came to India in 1995 and has since become an
indispensable part of Indias snacking culture. The
international taste blended with Indian flavours appeals
to the Indian youth which Lays primarily targets. Itsfirst campaign No one can eat just one was a huge
success and the brand used it for a long time. Saif Ali
Khan as the face of Lays in India helped in reinforcing
the youth-centric imagery that the brand tried to build
through its campaigns.
Its next campaign
Whats the
programme
shifted the focus of
the positioningfrom taste to usage
occasion making
Lays the the main
food of every
programme. The
brand then roped
in another youth
icon, the captain of the Indian Cricket team, M. S. Dhoni
as its brand ambassador.
Lays decided to give a voice to its consumers opinionand started the Fight for Your Flavour campaign where
the consumers could vote for their favourite flavour.
The TVCs for the campaign ran as a face-off between
Saif Ali Khan and M. S. Dhoni portrayed as netas urging
the consumers to vote for their respective flavours.
Later, with the increased competition and growing
health concerns of the consumer, Lays launched a TVC
claiming that it had
40% less fat.
In 2009, the brandagain went in for a
major repositioning and came
up with the tagline "Be a little
Dillogical". The concept clearly aimed at making a
strong connect with the youth - talking about what one
wishes to do versus what one has to do. The campaign
was launched with a series of ads built around the
universal consumer struggle between what the mind
asks one to do and what the heart desires. The idea was
taken a bit further to launch the 'Give Us Your DilliciousFlavour' campaign encouraging consumers to send in
their recipes.
During the Cricket World
Cup 2011, Lays launched a
new campaign Kaun
Jeetega World Cup and
came out with six new
flavours. It called the
consumers to vote for the
team that would win the
World Cup and get a chance to meet the Indian captain.
Lays has so far managed to get it right with its Indian
consumers. Be it the Indian flavours or the youth-
centric imagery and appeal of the brand, Lays has
always struck the right chord. As the youth brand that it
has carved itself as, it continues to grow in the hearts
and minds of its consumers.
spec ials | b rand story ma rkathon | oc tober 2011
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Brand relevanceMaking Competitors Irrelevant: David A. Aaker
Review by sria majumdar
Jossey - Bass | Hardcover Edition, Price
Rs.1654
This book is David Aakers ninth on branding, and that
itself should be a crowd puller. The essence of the book
is beautifully summed up in the quote David starts his
book with You do not merely want to be considered
just the best of the best. You want to be considered the
only ones who do what you do.- Jerry Garcia
If the authors branding expertise, position as ProfessorEmeritus at the Haas School of Business and being the
Vice Chairman of Prophet, a global brand and marketing
consultancy firm are not reason enough for you to pick
up the book, read on to know why the book is relevant
for you.
Summary
The ground breaking book explains the difference
between brand relevance and brand preference. In the
battle for being relevant, its important that when a
consumer considers a category/subcategory- your
brand is in the consideration set. Brand preference
battle comes in the later stages when one selects a
brand from the consideration set and here
differentiation, loyalty and experience come into play.
The book describes how various brands have won and
failed in the brand preference battle, and in the later
chapters, talks of finding new concepts, evaluating
them and defining and managing a
category/subcategory. Also, the book deals with
sustaining the differentiation, and gaining and
maintaining relevance in the face of market dynamics.
Organization
The book begins with the Japanese Beer Industry, and
illustrates how Asahi became a market leader by
defining a new subcategory and becoming the only
relevant brand in that subcategory. The brand relevance
model is explained, and thereafter the categorization,
framing, consideration and measurement of brand
relevance are dealt with. There are three chapters
completely dedicated to retail, automobile and the food
industry- wherein multiple cases prove the point David
makes about brand relevance.
The book doesnt stop there. The author proceeds to
explain to the reader how the brand relevance battle
can be won, and once again illustrates his theories with
brilliant examples- ranging from Apple to
Salesforce.com to GE.
Verdict: 4/5
The book is a must read for anyone interested in
branding and marketing strategy. The only negative for
an Indian reader would be that most of the examples
are from a US context, and there are times that the
brand examples are unknown. Having said that, the
examples only enrich ones knowledge of brands and
makes the reader appreciate the risky world of brands
even more.
Bottom-line
David Aakers latest book, is a bibliophiles reading
pleasure for a plethora of reasons. First and foremost,
any advice from the branding strategy guru comeswrapped in simplicity and is almost always backed by
examples. Secondly, the book provides an insight into
various brands- Zara, Subway, Toyotas Prius Hybrid,
P&Gs Olestra and many
more. Finally, the book grips
you from beginning to end-
because Aaker is an author
who knows how to entertain
the reader and yet, impart
invaluable branding lessons.
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BRAND ADVERTISEMENTS
TVS Apache claims to be scarily fast with a
new TVC
TVS Apache has unveiled a new commercial to highlight
the speed factor of the bike which makes it 'scarily fast'.
The TVC has been created by McCann Erickson. The
objective behind the TVC was to differentiate Apache
RTR 160 from all other bikes especially in the area of
performance emphasizing that Apache RTR is meant for
true bike enthusiasts. The positioning of TVS Apache
was considered while bringing out the TVC and was
effectively amplified through the communication route
taken. The TVC was positioned at bringing out theaspect of super speed in a unique and entertaining
manner.
Vodafone communicates a multitude of
offerings with new campaign
Vodafone India has launched a new campaign to
indulge their consumers in a volley of voice based
services their toll free number 123 claims to offer. The
campaign created by Ogilvy works on the thought thatyour phone is not just meant for talking. The campaign
stars Irrfan Khan and for the Southern market, the
campaign features actor Prakash Raj. The TVC was
based on the idea that there is a huge segment of
consumers with basic phones and a lot of hesitancy in
exploring other services or even data. So the main idea
was to involve and evolve this audience by giving them
information they want without the complications
through voice based 123 service.
TOI asks Chennai readers to wake up to
The Times of India
The Times of India has launched a new campaign for its
Chennai edition. The campaign titled, 'Wake up to The
Times of India' has been created by Taproot India. The
TVC blends in a Tamil lullaby with different scenes in a
satirical way so as to project that the readers of
Chennai have been reading boring papers for a long
time and it's time they switched to TOI's Chennai
edition for their daily dose of news. The idea was to
underline to the consumer that if he's stuck with boring
news, he should switch to TOI Chennai.
Draftfcb Ulka recreates the magic of
Manthan for Amuls new TVC
Nearly a decade after Amul released its 'Mero gaam
kathaparey advertisement, Draftfcb Ulka has recreated
the magic of Manthan for a new TVC. The new film
emphasises on a woman's contribution towards
creating a healthier lifestyle for the society in general
and aims at establishing the bond between the milk
producer and consumer. The idea behind the TVC is
about connecting rural India with urban India. The new
TVC is more about how this independent rural woman'slife has enriched further and now she is walking
shoulder to shoulder with her urban counterpart.
Second TVC out for Myntra.com
Myntra.com has announced its Autumn/Winter 20011
collection with the help of a new TVC created by Happy
Creative Services. The second TVC aims to drive home
the fact that Myntra retails only the most popular in-
season merchandise. The ad features young people,
dressed in apparel and accessories from Myntra, who
treat everyday places like the supermarket, the college
corridor as fashion ramps, and hence, walk like models
down it. The TVC will be supported by print, cinema and
digital campaigns.
BRAND LAUNCH
Lenovo launches tablets with the 'Do'
mindset
Lenovo has launched a host of tablets that will be
available in different markets of India. The launch
involves three types of tablets, IdeaPad K1 and A1 for
consumers, and ThinkPad tablet for business
professionals. For the launch of their first family of
tablets, Lenovo is propagating the 'Do' mind-set
communicating that theirs will be 'The do anything,
anywhere, anytime tablets'. The core proposition
behind the TVC would be to highlight that these are the
'Do' machines that can help do all the amazing things
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that consumers thought weren't feasible so far. The
creative agency at the helm for this launch is Ogilvy &
Mather.
BBC.com launches India edition
BBC.com, the international news website, has unveiled
three new editions for, Asian, Indian and Australia/New
Zealand consumers. All three sites will be tailored to
provide more in-depth analysis, breaking news and
business bulletins for each of the markets as well as a
host of specially commissioned features and reports.
These editions will be supported by BBC.coms
commercial launch partners Finnair, UPS and Prudential
Corporation Asia. According to BBC, these three new
editions across Asia reflect the BBCs commitment to
accurate, high-quality and independent news across
digital platforms.
BMW Group to Launch MINI Brand in India
in Early 2012
BMW Group, the Bavarian automaker, announced on
Monday that it will launch the firm's small premium
models in India starting from 2012. The company plans
to create standalone dealerships for the MINI brandbeginning with two showrooms in Delhi and one in
Mumbai. Over the next few years, the British
automaker will boast a total of 12 dealerships
throughout the country. The company have not yet
finalised the price of the car yet, but the entry price will
be more than Rs 25 lakh. Interestingly, India has been
the only country where Mini has not been introduced.
BRAND NEWS
Unilever outlines 'more magic, less logic'
marketing philosophy
Unilever is to undertake a fundamental change in
approach to its marketing through the implementation
of a fresh 'More magic, less logic' company philosophy.
The FMCG brand-owner wants to shake up its numbers-
led marketing strategy to reward marketers who are
prepared to take risks and back creative ideas. The
company believes this new philosophy would enable
marketers to fail, where previously they have been
scared to take risks. It is understood that Unilever
hopes the change will help move it away from the type
of model used by rival Procter & Gamble.
Star Plus launches iPhone, iPad apps
Star Plus has launched apps for the iPhone and iPad, amove that the channel says has made it the first GEC in
India to do so. The apps are available in India and over
120 countries around the world. The initiative aims to
make entertainment content available on-the-go. The
App store will enable upwardly mobile viewers to watch
their best loved programs on iPhone and iPad wherever
they are and whenever they want to. The app allows
users not just a great video experience, but also gives
details on show schedules, news and updates on their
favorite show characters through daily audio blogs.
CNBC-TV18 launches CNBC-TV18 Prime HD
CNBC-TV18 has launched a new premium business
news service called CNBC-TV18 Prime HD. The new
business channel will be focused on the needs of Indias
rapidly expanding investor and financial services
community. To be available in addition to the existing
CNBC-TV18 channel, CNBC-TV18 PRIME HD will be
broadcast on Indias leading DTH platforms in HD
quality. CNBC-TV18 Prime HD will operate on a
seamless and unique 2 window screen architecture,
that will offer rich and in-depth live video and data
content to viewers simultaneously.
BRAND RELAUNCH
PepsiCo to relaunch Duke's in Mumbai
PepsiCo is all set to re-launch the Duke's range of
beverages in Mumbai. Dukes will now be available in
four flavours raspberry, masala soda, gingerade and
ice cream soda. The marketing promotion will mainly be
through below the line activities, and start-up design
agency Delta Leonis has been appointed for the same.
According to PepsiCo, the new Dukes range represents
Mumbais spirit, which is a strong mix of tradition and
modernity. It celebrates the heritage of Mumbai and
echoes the same values of energy, strength andeffervescence.
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