August 2011 | Marketing Magazine of IIFT

Event:

The National Marketing Symposium 2011

“Building Indian Brands”

Date - August 19, 2011

Venue – Indian Institute of Foreign Trade, New Delhi

Interview with

Mr Krishnan V,

VP-HR,

Dabur India Ltd.

arkmantra is the brain-child of IIFT, encompassing various dimensions of marketing and exploring horizons of this integral business function. To bring out the best in the marketing domain from the trivial to the bizarre things that really matter which is aimed at enlightening the

marketers is the onus of the team. Trend analysis and innovation in the market are two prime focus areas of the magazine. These, we think, will make you ponder upon how a company proactively or reactively markets its offerings. Customer value is of paramount importance to every marketer and we as IIFTians strive to provide maximum value proposition to our customers, that is, you.

Marketing’s significance lies in value exploration, value creation, value communication and value distribution. No matter where your interest lies, be it Finance, HR, IT or Operations, understanding marketing is always important. As they say, Balance Sheet is also a marketing tool and employer branding is also fast gaining importance. So Markmantra will not only help the marketers but also people interested in other streams by understanding the implications of marketing on their decisions and vice versa.

TEAM MARKMANTRA

EDITOR-IN-CHIEF : Gaurav N. Gudhka

MANAGING EDITORS : Siddharth Girdhar

Radhika Ravichandran

M

Contents

i. Cover Story: The New Age Branding (Brand- A perception or a reality?) 1

ii. International Marketing: Nation Branding- The What & The What Not 4

iii. Branding Paradigm for the Bottom of the Pyramid Market 7

iv. Brand Activation- A breakthrough in the clutter 11

v. Dabur’s Helping Hand: Career Progression 13

vi. Building Indian Brands 15

vii. Branding in the different stages of Brand Life Cycle 17

viii. Brands Head-on- The Noodle Riddle 20

ix. IIFT Special: Corporate Speak featuring Colgate-Palmolive

a. Sales Beat, Mr.Rajiv Rajan and Mr.Ravinder Singh Chauhan 22

b. Talent Acquisition & Development, Shivani Singh, HR Manager 26

c. Rendezvous with Parul Patel, Marketing Manager 27

x. The Indian Service sector: Serving up India’s strongest brands 28

xi. Ambush Marketing 30

xii. Best 100 Global Brands- A Review (Summary of Interbrand report) 33

xiii. Luxury Brand Management 37

xiv. Marketing Lingos 39

xv. Product Launchpad 41

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BEST GLOBAL BRANDS- A REVIEW

NATION BRANDING

BUILDING

INDIAN BRANDS SERVICE SECTOR

BRANDS

HOLISTIC MARKETING

Integrated marketing

(Communications, products

& servies, channels

Relationship marketing

(customers, channels partners)

Performance marketing

(sales revenue, brand &

customer equity, ethics)

Internal marketing

(employees and

management)

BRAND- A perception or a reality?

Let‟s begin with the universe as a whole. Our

galaxy among billions of other galaxies is called

the Milky Way. Our planet Earth is one among

billion other planets in the Milky Way.There are

more than 190 countries in the world, each

differently named with a sovereign flag of its

own. Billions of people reside in these countries.

So what is that differentiates one from the other?

Are we all brands? Yes, by virtue of physique,

personality, culture, relationship, self-image and

reflection which essentially form together the

identity of a brand.

A brand could be a name like mine and

yours, some characteristics, some symbolic logo,

some association or a combination of all these.

It helps in identifying and differentiating one from

the many. A brand is a way of making a

complicated world simpler. In this fiercely

competitive world where there is a clutter

created by the marketing bustle, a brand acts as

a symbolic cue that lets you know what you are

getting vis-à-vis your expectations. It‟s an offering

from a known source.

Branding: Branding is a dynamic process and

entails a gamut of activities holistically

encompassing a business. It‟s not only the chore

of the Brand Manager of an organization, but

involves each and every individual belonging to

the organization. A wide portfolio of activities is

performed during the entire life cycle of a brand.

Brand creation, Brand development and Brand

maintenance are the key three bearings of

branding which contemplate the core of

marketing which is value exploration, value

creation and value delivery.

The new age branding is a holistic

approach that marketers adopt for sustaining the

brand equity. It has four aspects to vouch for.

Brand creation starts from market

research to Target Group identification, product

idea development to channel strategy and

identity creation to marketing communication

plans. So to start with, segmentation of the

market plays a major role in brand strategies. If

your target audience is well defined then there

just needs to be a good communication strategy

for the success of the brand, needless to say that

the core of a brand, i.e. the product should

provide good value proposition. Mass marketing

in the times of yore was suitable because the

awareness level of the consumers was low.

Apparently, marketers look for a niche segment

so that the brand realizes its true value.

Brand Architecture: For this reason Brand

Architecture has evolved over a period of time

which effectively shows the optimization of the

Brand portfolio of the company. Brand

architecture is the structure of the brands within

an organization. It defines the different leagues

of branding. The imperatives are i. market clarity,

ii. Existing equities and iii. Aspiration and growth

strategies. A company measures the equity of

each brand in terms of market share, brand

loyalty, brand awareness, brand perception,

brand association and Intellectual property

rights.

THE NEW AGE BRANDING

Holistic marketing

approach as the new

age branding paradigm

1

New ways of branding: In this new era of

digitalization and socialization, marketers have

found distinct and sophisticated means of

creating and developing a brand. Consider

Sonic branding. Sonic mnemonics are created

with the help of jingles and tunes to convey a

memorable message to the target audience.

Intel‟s famous D♭ D♭ G♭ D♭ A♭ jingle along

with other smart modifications in the brand logo

has led to high brand equity in terms of brand

awareness and brand loyalty. The world‟s largest

semiconductor chip maker has undergone

several modifications in its branding which has

fetched itself 7th place in the Interbrand‟s Best

Global Brands report with a total brand valuation

of $32,015 million. Some more cases of sonic

branding with respect to India are Titan, Britania,

Raymonds, etc. which have a high brand recall

owing to their powerful memory sense of sound.

Sonic branding is a part of Sensory

branding which allows the consumers to engage

themselves with touch, taste, smell, sight and

sound with respect to a brand. Kishor Biyani

envisaged a breakthrough in the organized retail

trade in India with a vision to satisfy a customer‟s

wish to touch, smell and feel products be it fruits

and vegetables or grains. The success of such

retail chains in India is also due to the advent of

experiential marketing in India. Marketers want to

enhance the brand perception by way of

attracting potential customers to experience the

product. This emphasizes on the fact that User

imagery is of utmost importance to develop

brand perception. User imagery is the perception

of the user which tends to be more realistic vis-à-

vis that of a non-user.

Breakthrough in communication: In order to

break through the clutter of brands, it becomes

important for the marketers to engage customers

through various Brand activation activities. More

interaction with customers means more

involvement which leads to better customer

insights. Brand activation‟s ultimate objective is

building brand awareness and brand loyalty

through publicity, PR and Word of mouth

promotion. But what essentially forms the basis of

brand activation or for that matter even other

promotional activities is „Communication‟;

communication of the offerings to the end user.

Communication is the magical layer between

the company and its consumers which revolves

around the positioning of the brand to form a

perception of the brand. This layer disappears

with the moment of truth as the customer

experiences the brand. Today communication is

not a tool but a feat in itself.

2

The new age branding has unveiled

many new forms of communicating the message

of the brand. Brand Placement is one such

activity. When the traditional methods saturate,

new methods like brand placement arise. Brand

placement is an expensive but effective way of

conveying appropriate message to the target

audience. Brand placement can be done

through sponsoring events like Sports events,

award functions and by placing the brand on

the 70mm screen through a movie or a TV reality

show. Examples of such placements are

Mountain Dew in Roadies, Royal Enfield and

Hermes in Zindagi Na Milegi Dobara, etc. On the

contrary a much cheaper option in the

digitalized world is the social media which also

forms a part of the new age era in a big way.

Social media has the power of influencing the

existing and potential consumers of a brand.

Social media provides a platform to have a

conversation with the consumers and

understanding their needs better. It is an

economical way of promotion and with the

advent of technology, interactive marketing has

a huge role to play to create, develop and

sustain brand equity. Personalised marketing and

loyalty programs are other ways of building

brand loyalty.

Brands, like living beings, age. And in a

cut-throat dynamic market, only the fittest survive

which suggests that brands in the different stages

of its brand life cycle need to assume different

branding strategies. It is essential to keep abreast

of the changes in consumer preferences. Now is

the time when brand loyalty is almost a myth. So

innovation in the product and innovative

communication strategies could help a brand to

drive ahead of the competition and enjoy the

desired share of market. Focus should be more

on making the brand more hedonic rather than

conspicuous because affect loyalty is more

sustainable than action loyalty.

Brand=Business?: From an economic

perspective, consumer spending is very

significant for an economy‟s growth. And

marketers try to add value by creating brands.

Brands fetch more value, a premium than

otherwise consumers would have spent. So the

task of marketers on a macro level is to create

value for the country and on a micro level to

create value for the mutual benefit of the

company and the consumers. Especially after

the economic downturn, there is an increasing

need for the brands to establish a strong foothold

in their respective segments. A brand is not just

the face of the business, perhaps it is the

backbone of the business. A strong brand has

the ability to survive and defy the adversities of

the economic environment. Four characteristics

of a strong brand are: Difference, Clarity,

Consistency and Leadership which are achieved

with the help of proper positioning of the brand,

providing superior delivery of desired benefits,

maintaining innovation, establishing credibility

and brand personality and ultimately integrated

marketing communications. In a nut shell,

marketing appropriate products and marketing

products appropriately.

For both company and consumers, a

brand reduces the risk in product decisions. The

factors that influence the company and the

consumers include functional, physical, financial,

social, psychological and time. When these

factors are best suited the needs of both the

parties then the company enjoys high brand

equity as well as high customer equity.

“A brand is a real perception of the perceived

reality.”

Gaurav Gudhka

MBA (IB) 2010-12

Indian Institute of Foreign Trade,

Kolkata

3

The Global Village is not just a catchphrase

anymore; the change is there for everyone to

see. Globalisation today has turned the world

into a huge supermarket, where countries are

competing against each other to stimulate their

exports and attract a limited pool of tourists, FDI

and talent, to increase market share and to

command price premiums in the global markets.

To establish a competitive edge over „rival‟

countries, differentiation on a global scale is

required, which helps in improving the country‟s

inbound (FDI, Tourism, etc.) as well as outbound

(Exports) prospects.

From this backdrop, emerges the

concept of Nation Branding, which was first

proposed by a British consultant Simon Anholt in

the late 1990s, who created waves by suggesting

that nations can actually be viewed as brands!

Nation brand has been defined as the unique,

multidimensional blend of elements that provide

the nation with culturally grounded differentiation

and relevance for all of its target audience. A

newer definition explains nation branding as a

process by which a nation‟s image can be

created or altered, monitored, evaluated and

proactively managed in order to enhance the

country‟s reputation among a target

international audience.

The origins of nation branding can be

traced back to four different sources – the

country of origin (COO) studies, place or

destination branding, and more recently public

diplomacy and national identity. A nation brand

is the sum total of all the perceptions of a nation

in the minds of international stakeholders, which

contains elements like – people, place, culture,

language, history, food, fashion, celebrities,

global brands, etc. The purpose of nation

branding is to position the country in the best

possible manner, given its strengths and

weaknesses, in order to become more

competitive in the world market, which would

ultimately generate the benefits for the people of

the country by providing them with jobs, wealth,

and also dignity.

A nation‟s „brand‟ exists, with or without

making any conscious efforts in nation branding,

since each country has a certain image to its

international audience, be it strong or weak,

current or out-dated, clear or vague. A

conscious effort becomes imperative for those

countries that have undertaken dramatic

changes in their political, economic and social

systems since the external images almost always

lag behind the reality. It is the task of nation

branding to narrow that gap between the

images and reality.

Abundant literature is available on

previous efforts in the area, with some very

predominant examples. New Zealand, which was

one of the first country to take the concept quite

seriously, has come a long way from its „100%

Pure New Zealand‟ campaign to the latest „New

Zealand, New Thinking‟. With investments running

into millions of dollars, the country also reaped

benefits in the form of an exponential increase in

the number of tourists and a sharp rise in wine

exports. Malaysia too, with its „Britain in Malaysia‟

and „Malaysia, Truly Asia‟ campaigns has made

successful attempts in positioning the country as

the most beautiful destination in Asia. Germany

NATION BRANDING:

THE WHAT & THE WHAT NOT

4

also used the 2006 FIFA World Cup to make

attempts to overcome its tarnished image (for

the role it played in the World War II), by

emphasising a fresh and exciting outlook under

the „Land of Ideas‟ campaign. China, with its

huge $40 bn budget for the 2008 Olympics,

made a brilliant attempt at showcasing its

uniqueness and changing the world‟s impression

of hers on issues such as world peace, friendship,

democracy and human rights. Quite recently in

2009, Korea brought in an entirely new dimension

by establishing the Presidential Council on Nation

Branding (PCNB), which is mandated to set

strategies and directions to coordinate and lead

nation branding activities for each department

and ministry.

Closer home, case in point is of the

„Incredible India‟ campaign that kick-started in

2002, mainly to promote tourism in India. The

campaign was an integrated marketing

communication effort to support the Indian

tourism industry's efforts to attract tourists to the

country, and projected India as an attractive

tourist destination by showcasing various facets

of Indian culture and history like yoga, spirituality,

etc. The global campaign, with its eye-catching

imagery won several awards abroad, as well as

helped in increasing the tourist flow into the

country.

But there are many obstacles in the path

of implementing a nation branding strategy that

makes it a challenging and a long process. Firstly,

the sheer number of stakeholders involved gives

rise to conflict of interest as not all perceive an

action as beneficial to them as to others. Also,

the effort is difficult to be controlled by a central

authority, as it requires a lot of participation from

the citizenry to achieve the plan. Another

obstacle is that the marketers also have little

control over branding activities, because the

audiences can learn about the country from a

variety of sources like the media, academic

institutions, product purchase, trips abroad, and

contacts with people from that country. Lastly,

the government officials, who are involved in

planning for nation branding, have limited

knowledge for developing major marketing

campaigns, which can lead to wrong

approaches.

Owing to such challenges, the Incredible

India campaign too came in for criticism from

some quarters. Some felt that it had failed to

capture several aspects of India, which would

have been quite attractive to the average

tourist. Some others felt it‟d have been better to

build the necessary tourism infrastructure first

before actually launching the campaign. Still

others felt that what actually was needed was

not an extravagant communication campaign

but taking care of other grave issues of poor

connectivity, exorbitant taxes, visa problems,

unsanitary conditions, and shortage of

affordable, good quality accommodation, which

actually put off a majority of tourists.

Nation brands are similar to any other

brand as they have unique characteristics of

themselves and as no two nations are alike.

However, what makes nation brands different

from company brands are their diversity of

thought, language, geographic landscape,

unique histories and experience, unlimited

product life cycle, and the desire of the country‟s

populations to be special and original, all of

which contribute to the uniqueness of each

country‟s nation brand identity and help prevent

the brand from being imitated or copied by any

other country.

The evolution of the concept of nation

branding has been steady, and in 2005 Simon

Anholt, renowned worldwide as the father of

nation branding, developed the Nation Brands

Index (NBI), as a way to measure the image and

reputation of the world's nations, and to track

their profiles as they rise or fall. The Anholt-GfK

Roper Nation Brands Index measures the power

and quality of each country's 'brand image' by

combining the six dimensions of Exports,

Governance, Culture & Heritage, People,

Tourism, and Investment & Immigration. Each

country's score across these six dimensions is

crisply captured in the Nation Brand Hexagon,

5

which is a visual rendering of the total Index

score.

It provides a consistent framework for

country-to-country comparisons against the key

factors impacting a nation's reputation, which

allows one to see just where does a nation's

brand ranks and why. Along with the Index

analysis, the Nation Brand Hexagon provides a

thorough assessment of a country's standing,

making it one of the most effective tools

available for managing a country's reputation

around the world.

Apart from a scientific and focused

approach towards the nation branding strategy,

a strong and ethical commitment to corporate

social responsibility and sustainability on part of a

nation is vital and expected by all the

stakeholder groups. In a world that is frequently

hit by financial crises and greediness of

corporate power, humanitarian aids, donations,

sending medical or rescue teams for disaster-

struck regions, helping rebuild earthquake-hit

countries, can significantly contribute to building

positive nation brands, as deeds speak louder

than words, as goes the time-tested adage.

Jayant Rana

MBA (IB) 2010-2012

Indian Institute of Foreign Trade, Kolkata

6

Searching for space to inflate your captive

market in these turbulent economic times - gaze

at the bottom of the economic pyramid. Over

these years marketers have conventionally

besieged upon upper market segments, but now

the time has come for a radical change in

perception, it is time to start milking the huge

prospect that lie in less affluent markets which

has been not been yet catered to. 65% percent

of the world‟s population i.e. around 4 bn people

earns less than $US 6 per day. Most of the Brands

worldwide cater to only the remaining 35% and

the remaining spectrum of the population

remains largely untapped. Lately many new

emergent brands and even the reputed

international brands are trying to explore the so

called bottom of the pyramid. This has resulted in

a paradigm shift in branding and new marketing

trends have emerged.

In a country like India with a population

of around 1.21 billion, does it make any logic to

have marketing strategy or plans that will cater

to only 24% (IFC-WRI study) of the that

population? Given the current market scenario, it

is obvious that there is huge potential and

incentives to consider this layer as the target

segment. This segment has the purchasing power

parity (PPP) rates, signifies a market size of PPP

$1.5 trillion in India making up the biggest chunk

of the global $5-trillion BOP market excluding

China, which is huge.

Although there is set market to be

explored but still firms are jittery on making a

move. The credit for this goes to few

misperceptions that are very common. Firstly it is

believed that the people who are poor don‟t

want to buy creative products and services.

Secondly that they don‟t use sophisticated

products that are consumed by the upper class.

Thirdly that they are unable to adopt technology

easily and lastly that they are difficult to reach

and that they don‟t have brand-awareness. Let

us crack down these assumptions and the reason

behind them.

BRANDING PARADIGM FOR THE

BOTTOM OF THE PYRAMID (BoP) MARKET

Bottom of the pyramid brand management policy 7

Gauging the Purchasing power: Although people

in this segment have low income, the average

spending power of these people cannot be

ignored. If we consider the purchasing power

parity (PPP), their ability to spend and purchase

becomes even more noticeable. However, their

patterns of spending fluctuate immensely. Many

of these people are day laborers and have

variable pay systems. They tend to buy when

they can and when they need to. Single-serve

packaging or multiple SKU level (sachets) is one

of the solutions that is being used right now to

handle this hindrance. Companies like P&G, HUL

and other FMCG giants have come out with

sachets and other smaller SKU levels which are

low cost and quality products which enable

people with low income levels to use them

efficiently.

The companies targeting the BOP

market concentrate on the pull factors such as

social status, value for money rather than the

factors such as brand equity which usually work

in the regular market. Due to irregular income

BOP customers do not have the habit of storing

things hence most of the shopping that they do is

on credit basis. Thus price becomes an important

criterion for FMCG companies. The low price

strategy used by Nirma in 1970‟s and lately by

Ghadi detergents has been extremely successful

in taking over the market. HUL has also launched

a variant of its largest selling soap brand,

Lifebuoy at Rs 2 for 50 gms to venture into this

market. This is the strategy that Coca Cola used

while introducing the Chota coke for 5Rs.

Managing personal brand relationship

and responsive marketing are more important in

the BOP market where the consumers are well

connected with each other. Project Shakti

implemented by HUL

uses personal brand

relationships to draw the

BOP consumers, with

local institutions being

retailers or distributors of

global brands in the

region. They created a

direct distribution

network by training and

educating village

women to distribute

products in their village. Cosmetic brand Avon

uses the same strategy of personal brand

relationship while targeting the BOP market in

Brazil. The brands are using the existing rural

model of distributing products rather than

building new shops or duplicating the existing

regular market models. Melas organised by

Godrej and Kissan Sansar by Tata have been

hugely successful in targeting the BOP market.

Infrastructural hindrances: About 78% of the BOP

population resides in rural areas. A combo of

distribution methods is required to serve the BOP

market. Companies have already started to

tackle this problem head on and trying out

newer models of distribution which will give them

maximum benefits. One of the examples can be

of HUL‟s strategy. For distributing to the villages

and rural parts, they have removed the Star

Sellers which used to be one part of the

distribution channel.

8

Only 40% and 45% of the total Indian

population has access to TV and Print

respectively. Innovative marketing is required to

reach these customers whom the traditional

media cannot reach out. ITC e-Chaupal is one

such example where the company took

advantage of India‟s superior mobile penetration

to its advantage and build brand awareness

among customers. E-Chaupal has altogether

revolutionized the distribution models.

Companies are also using CSR as a tool to

improve the brand awareness and penetration

among the BOP consumers.

Brand Consciousness: Another misconception

that requires to be tackled is that the poor is not

brand-conscious. On the contrary, the poor are

very brand-conscious and also very value-

conscious, by necessity. They want best of the

quality and maximum value on the least price.

This calls for out of the box innovation and

reengineering on the producers part.

Global brands are targeting the BOP

market by positioning themselves differently by

including the individual and cultural attributes of

consumers in their advertising strategy. The belief

that BOP customers are not brand conscious is

just a myth, the experience of Casas Bahia in

Brazil and Elektra in Mexico suggests the

same. Lux‟s strategy of using audio

advertisements in bus stops of Maharashtra has

been fairly successful. These examples clearly

point to a trend where rather than creating a

new brand the companies are positioning their

existing global brand differently for the BOP

market.

Educating the consumer: Innovation and

technological developments are strategic drivers

to address the BOP market. The same products

and services that are sold to rich will not attract

the poor. It is not only a matter of price but also

the look and feel. The needs of the BOP market

are different and must be well analyzed and

products must be conceptualized to address

those needs. For example, SMS-based mobile

banking services to the poor would not work

because of the wide spread illiteracy levels. Tools

such as SMS readers would do wonders in

situation like this.

Creating trust and credibility: Big firms and BOP

consumers have conventionally not trusted each

other. Creating that trust is a tough job and

prerequisite to address this market. Take an

example of Bangladesh's Grameen Bank, where

the default rate is less than 1.5 percent and is

very successful in working with farmers just

because it has able to create that trust whereas

other banks could not. We can also see initiatives

taken by Pantaloons by launching its rural

venture called “Adhaar” which is specifically

designed to cater to the rural population which is

also on the same lines.

Brands are making continuous effects on

improving the product quality and packaging

innovation to influence the BOP consumers. As

most of the BOP customers are illiterate

packaging makes a huge difference .Roping in

famous film stars and using pictures while

packaging will help increase brand awareness.

This strategy will also help in nullifying the effect of

spurious products such as RC Cola and Hello

Chips which are prevalent in the BOP market.

Surf Excel Blue is a prime example of continuous

product innovation in India. Wonder Brands

introduce packaging revolution in Africa when it

introduced its brand cowbell for the BOP

segment where they introduced the three

membrane sachet packaging in 1993.This

innovation was imitated by most of the FMCG

companies in the coming years while launching

sachet packets.

9

The life cycle of BOP focused brand is

entirely opposite to the premium brands. The BOP

brands take time to gain the customer

acceptance but once they overcome the initial

phase they gain strength in the years ahead;

unlike the premium brand which initially are

stronger in perceptional values of consumers but

turn sluggish over time as new brands penetrate

the market. To build the acceptance among the

BOP segment the brand strategy needs to focus

on intensive advertisements, sales schemes and

must have an attacking sales force. The success

of Chik shampoo can be attributed to these

factors. During the initial phase

Chik Shampoo, one of the

earliest brands to target BOP

customers spent Rs 2 Lacs per

year in advertising. They also

roped in South Indian cine

stars Kushoo and Manorama

to promote their brand. These strategies helped

them in gaining 20% of the total market share of

shampoos in India with their core customers

being the BOP segment.

Being successful in doing business at the bottom

of the pyramid calls for a paradigm shift in the

approach towards this market. It requires

successful micro management with low margins,

versus smaller number of more profitable

transactions. It also requires synchronized focus

on revenue and risk management along with

innovation and strategies in product

conceptualization, and the whole supply chain.

Though dealing with the BOP market is difficult,

the current economic stance leaves businesses

with no option but to look for alternative market

segments in which to venture and grow. Being in

a country with a huge poor and rural population

further compels us to search and take up new

techniques to generate profits, while

simultaneously alleviating poverty and economic

divide.

Moreover, it is quite evident that BOP marketing is

evolving and companies are creating new

strategies which are resulting in new branding

paradigms. Marketers must take cue from these

changes and must focus on the BOP customers if

they want to make their brands the market

leaders of future.

Abhilash Bhattacharya

NITIE 2010-12

Ashwin Kumar

SJMSOM, IIT-B 2010-12

10

Tell me and I forget. Teach me and I remember.

Involve me and I learn.

-Benjamin Franklin

As very well mentioned in the above quote

whenever people are involved in any initiative

the results are always outstanding and

everlasting. This is the new trend in the marketing

arena as the enlightened individual has become

the focal point in the society. As society moves

into post modernism, new companies have

evolved and older ones have reformed their

businesses to meet the ever-changing needs of

people and companies. These companies have

listened to their customers, and they have

learned that, both as companies and as persons,

we perceive ourselves as individuals with specific

needs.

Why Brand activation?

In a market where commoditisation is

commonplace and where distinctive brands are

difficult to create and expensive to maintain, any

company worth its salt is understandably trying to

wring every penny from its hard-earned brand

equity. Successful brands can no longer afford to

be the delicate hothouse flower that they once

were, germinated in a well-ventilated ad agency

and allowed to bloom only on a couple of

commercial TV channels. Companies are

realizing that a brand nowadays is not just some

cute little picture with a catchy caption (and

maybe some added music) to differentiate from

the other millions of similar offerings by

competitors in the market, but rather, an

embodiment of everything that the offering

stands for. Today‟s brands have to be bred to be

hardier, to be capable of standing up to close

scrutiny by consumers on their own terms. The

savvy marketing directors are compelled to

awaken their brands through carefully integrated

programmes of activity designed to bring brands

to the limelight and thereby penetrate further

into the daily lives of customers, so much so that

they refuse or defer purchase if the brand is not

available.

Activation shifts the focus to the core of

marketing i.e. stimulating the buying process.

Brand Activation can be defined as the newly

emerging stream in marketing which is a

practical and logical form of seamless

integration that enables clients and agencies to

focus on delivering activities rooted in the fabric

of the brand that engage with customers.

Activation means stimulating:

1. Interest: Developing interest among

customer.

2. Trial: Compelling the customer to use the

product.

3. Loyalty: Developing love mark for the

brand.

This can comprise of activities ranging from

visually-appealing product displays to providing

free samples in stores as part of “Retail

Activation” to high-end publicity campaigns,

sponsorships or competitions. For example, Red

Bull, in accordance with its tagline ”Red Bull gives

you wings”, conducts an adventure-oriented

event “Flugtag” in which it invites participants to

create their own human powered flying

machines that roll down a ramp and launch over

water. The event generates an 80,000 strong

crowd, along with fans and user-made video

BRAND ACTIVATION:

A BREAKTHROUGH IN THE CLUTTER

11

content for Youtube, thus creating humungous

publicity.

Methods involve in Brand activation

A brand can be activated primarily along four

directions:

Identity: Any brand needs to carve out its own

niche that is different from others, and this usually

starts by having its own name, logo, slogan and

other things needed for communicating to the

customers while also reflecting their mental

image of the brand. For example, Coca-Cola‟s

red logo, which signifies the reddish-brown colour

of cola, fits better into the public mindset than

the blue-white-red logo of Pepsi. Or take the

popularity of the Nike

„Swoosh‟, or the

eternally-memorable

cute jingle of Nirma

washing powder.

Besides this, the brand

should be positioned rightly in people‟s minds,

which doesn‟t always mean being the leader.

Avis positioned itself as being second-best to

Hertz in the car-rental business, with the

statements “We Try Harder” and “The line at our

counter is shorter”, and this worked wonders!

Communications: This is where the most

innovative magic happens, and may be

achieved not just by showcasing both loud as

well as subtle features of the product, but also

projecting how the communication reflects your

commitment to the company‟s core values.

Ideas like Colgate‟s Smile Campaign, Dr. Rabbit

as a children‟s mascot and showcasing dentists

in their ads towards the oral health campaign

help build credibility for their brand. Connecting

emotionally with the society by addressing social

issues is even better,

such as the “Save

Our Tigers”

campaign by Aircel,

as it portrays that

you are not just a profit-hog. On similar lines, Surf

excel has organized children‟s festivals in tandem

with its “Daag Achhe Hai” campaign, thus

penetrating the mother-child bond and

projecting itself as a brand that gives importance

to relationships.

The Companies

should not just

„talk‟, but also

„listen‟ to customers‟ feedback and implement

them, thus displaying sincerity towards the public,

such as the way Ford did using social networking.

Employees: Happy and inspired employees are

not just valuable assets, but can also provide

great word-of-mouth marketing. Make

employees feel they are an essential part of the

organisation. Promote healthy competition,

celebrations while skipping formalities and

avoiding excessive interference. For example,

Nordstrom declares that “No customer should

leave the department store without being

satisfied and happy” and for that, it tells its

employees--“Use your good judgement in all

situations. There will be no additional rules.”

Products and Services: However smartly a brand

may be projected, it is all useless if the product or

service doesn‟t live up to the people‟s

expectations. Disneyland must provide a

superbly joyful experience in order to call itself

“The happiest place on Earth”. BMW must

provide ultimate driving performance and

comfort to be “The ultimate driving machine”.

Similarly Vim must be capable of removing the

toughest and greasiest stains as claimed in their

advertisement. The proof can be deliver through

firsthand experience. In short, the

product/service must provide everything

promised by the brand.

There are no limits on ideas on how to activate

your brand. It is much more than just reaching

out to people; it involves creating trust among

them, so that they try to reach out to the brand.

Brand activation not merely a theory; it is logical

and inevitable. The era of telling consumers what

to think is long gone; consumers now make their

minds up by experiencing the brand in any

number of mutually conducive settings. And long

may that continue, as we will all, marketers and

consumers alike, benefit.

Sidharth Nanda & Umesh Jain

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Kolkata 12

As part of our endeavour to connect various marketing aspirants with

their dream companies, in this edition, we bring forward an interview

with Mr.Krishnan V, VP-HR, Dabur India Ltd. Mr.Krishnan has been kind

enough to consent for a small interview to showcase Dabur, its work

culture, career progression to all aspiring marketing students wishing to

join Dabur India Ltd. We thank Mr.Srijan Srivastava for helping us

materialize this interview with Mr.Krishnan.

Mr Krishnan V- VP, HR, Dabur India Ltd

Mr.Krishnan has been with Dabur since July 2008. An alumnus of Aligarh

Muslim University and FMS, Delhi, Mr Krishnan has a varied experience

across Industries and across Functions. He started his career as a

Manager, Quality at Eicher Motors, and then moved on to handle

Quality, HR at Xerox. Subsequently he worked with HR department at

Whirlpool and then joined Dabur.

What does it take to be successful at Dabur?

An Entrepreneurial and a go getter attitude are very essential to be a personality fit for working

with Dabur. Along with a passion for execution/action, one needs to comply with various processes

,which are an integral part of the organization, and also display flexibility to adapt to various

situations.

People Development is very important at Dabur .Could you throw light on the Training programmes

for MTs?

The Management Trainees have a rigorous training stint in core functional knowledge and also in

cross functional interlinkages through the Young Managers Development Program. For a Sales and

Marketing Trainee, exposure to Sales planning, Field force management, Brand Implementation,

Cost Control, Consumer and Trade Promotions and Advertising provides a well balanced scope for

learning to be a part of the corporate world.

13

DABUR’S HELPING HAND:

CAREER PROGRESSION

Along with an action packed training as mentioned earlier, there is a Campus to Corporate

Development initiative as well. Through this initiative, behavioural training is imparted by renowned

professionals in 3 phases to help the MTs make a smooth transition from college life to corporate

world.

Could you please explain the Balanced Score Card Concept as used in your organization?

It is based on Robert Kaplan‟s Model and requires the organization to be viewed from 4

perspectives – Financial, Process, Customer and Learning.

How important is gender diversity in the organization?

There is a strategic focus on improving the gender diversity in the organization. As Dabur has an

evolving Skin care segment, Women being the primary target consumer segment of the Skin Care

products, they are becoming increasingly important as Brand Managers as they can better

connect with the end consumer.

You have worked for organizations in diverse sectors like Eicher Motors, Xerox and Whirlpool. How

do you think the HR function is different across these organizations?

HR function in any organization is aligned with the resources of the organization. While a high value

less volume product organization has direct selling, low value high volume product organization

has distributed selling. As a result the Sales professional is different across these organizations and

hence different policies to suit their needs and develop their careers.

Any other aspect of Dabur that you would like to highlight?

Dabur is the perfect example of Domestic MNC with operations in the Middle East, North Africa,

West Africa, South Asia, EU, the UK and the United States. As Dabur believes in being Glocal, the

socio cultural, political and economic environment of the operating region are taken in account in

devising business strategies and HR policies for the organization. For e.g. In Middle East the HR

policies are so framed that they suit the employees in the month of Ramzan or for performing any

other custom.

Interviewed by:

Rajesh N,

MBA (IB) 20120-12

Indian Institute of Foreign Trade

14

Unleashing the potential of brand India

The first thing that comes to mind when one thinks

of Paris is high couture, wines and fashion. On

thinking about Italy, one thinks of good food, high

fashion and beautiful people. Similarly,

Switzerland evokes the idea of precision timing

and dairy products.

The aforementioned examples go on to

show how these particular countries have

branded themselves to elicit a particular image

in the minds of people.

Whenever a particular country is looked

at as a brand, every offering/product/service

from that country can be seen as a brand

extension of the particular country. Building an

effective brand is like a cocktail of a clear vision

and commitment, dashed with lots of patience

and conviction.

A strong brand succeeds in evoking an

emotional response from the target audience.

Take for example Jaipur. Whenever one thinks of

Jaipur the image of a rustic pink city of forts,

palaces and camels comes to mind. It is this

image that lures foreigners and celebrities of the

likes of Madonna to this city and its hotels. In the

2008 Conde Nast Traveler Readers Choice

Survey, Jaipur ranked as the 7th best place to visit

in Asia.

The success of states like Rajasthan,

Kerala, Goa etc. in luring tourists from both home

and abroad can be attributed to the way these

states have embarked on branding themselves

and marketing their tourism related offerings. The

success of this branding activity can be

corroborated by the following figures; The

Foreign Tourist Arrivals (FTAs) in India during

December 2010 and January 2011 were 6.55

lakhs and 5.38 lakhs respectively. The total

contribution of Travel &Tourism to GDP, including

its wider economic impacts has been valued at

INR 3,680.4bn in 2011. The total contribution of

Travel & Tourism to employment, including jobs

indirectly supported by the industry, is 37,655,000

jobs (7.5% of total employment) in 2011. We

could capitalize on the infinite variety of cultures,

traditions and geographies and promote India as

the ultimate tourist destination for the

adventurous soul. The Incredible India campaign

went a long way to portray India as the perfect

blend of beauty, adventure, and intriguing

customs. The campaign promoted India as a

colorful land and was so effective that other

countries created their tourism campaigns along

similar lines.

A well strategized and sustained

branding effort along similar lines would go a

long way in milking this lucrative industry to

India‟s advantage.

The process of building India into a

strong brand has gathered momentum in the

recent years. At present India stands at the

threshold of modernity and tradition. While one

part of India continues to make giant leaps in the

domain of science and technology, business and

academia, another part is busy trying to break

free from the clutches of poverty.

Time has come to brand India in a way

that makes the world sit up and take notice of

the infinite potential of the largest democracy on

the face of this planet. It‟s time India worked

hard to conscientiously to be perceived as a

powerhouse on various fronts - be it economic,

military, technological or cultural.

Building a strong brand India will have

many positive implications for our country of

millions. It will propel more trade, greater

employment and increased investments in

sectors such as infrastructure and make the world

sit up and take notice of the unrestrained

potential of India across various sectors.

Shahnaz Hussian has ingeniously

capitalized on the image of India as the land of

ancient wisdom and ayurveda. Shahnaz Husain„s

line of cosmetics broke free from the clutter of

chemical offerings and delved into the realms of

ayurveda. She embraced the world of nature

with its healing powers, taking the Indian herbal

heritage of Ayurveda to every corner of the

globe. Her ayurvedic formulations are sold in

various countries. Her products have acquired a

tremendous global presence and are retailed at

celebrated stores like Galeries Lafayette (Paris),

Harrods and Selfridges (London), the Seibu chain

in Japan, Bloomingdales (New York), La

Rinascente in Milan (Italy), as well as exclusive

outlets and clinics all over the world. The Shahnaz

Husain Forever Beautiful lifestyle shops, Beauty

BUILDING INDIAN BRANDS

15

Training Institutes, Ayurvedic centers and

Shahnaz Husain Ayurvedic Spas, can be spotted

in various cities across the globe. Such is the

strength of the brand created by Ms Husain that

TESCO; the largest retailer of UK has joined hands

with her to sell Shahnaz Husain herbal products

across all its stores. Ms Husain runs a chain of

over 400 global franchises and 600-odd

distributors. The company, according to an

FMCG analyst, has a turnover of Rs 650 crore.

Shahnaz Husain has become the ambassador of

India‟s beauty industry abroad and effective

branding has been one of the facilitators for her

resounding success.

Many entrepreneurs and companies

have used this particular image of India to their

advantage. Brands like Dabur, Biotique, Lotus

herbals are some of the brands that are reaping

great benefits by positioning themselves as

brands that have encompassed the ancient,

priceless knowledge of ayurvedic formulations in

their products.

In the arena of science and technology,

India must leverage on its strength in the IT

domain. Companies like TCS and Infosys are

providing the backbone to numerous industries

the world over. These companies are enabling

industries and sectors ranging from

manufacturing, medicine, space technology, IT

services, aviation ,consulting services,

communication etc the world over.

IT mammoth TCS has offices in 42

countries and operates across 142 nations. It

operates the first and largest software R&D

facility in Asia. Its client list includes names such

as Scuderia Ferrari, British Airways, Chrysler,

Cisco, Microsoft, Motorola etc. The presence of

such strong names in its client list shows the high

levels of competency and the credibility TCS

enjoys the world over. The sales turnover of TCS in

March 2011 was Rs 29,275.41 crore. Such is the

credibility of this organization that it added 36

new clients to its client list last year.

The success of organizations like TCS

shows the giant leaps India has taken in the field

of IT. It shows how the world depends on India for

meeting its IT needs in a cost effective and

efficient manner. India can easily capitalize on

this particular image as the enabler of processes

across the western world.

India can also promote itself as the land

of innovation for the masses. It is the land where

the world‟s cheapest car was conceptualized

and produced; it is the land where a similar idea

of creating the world‟s cheapest computer

originated. The idea of the 500 rupee (£7.25)

laptop took seed and germinated in India. The

idea was to bridge the "digital divide" in the

country between rich and poor, the laptop was

developed to link 18,000 colleges and 400

universities across the length and width of India.

India has a reputation for creating ultra-

cheap technologies, a trend sparked last year by

the Tata Nano, the world's cheapest car at Rs.

100,000 (£1,450).

It is time India gets known for the giant

strides it has taken in the fields of information

technology, in other domains of science; in the

services industry. We have the best test cricket

team in the world. Mammoth multinationals like

Pepsi co are headed by Indians. Not just that, the

Mecca of management education i.e. Harvard

Business School has an Indian dean. Indian

companies like the Tata Group and Bharti Airtel

are making their mighty presence felt throughout

the world. We are going great guns in sports,

academia, and arts etc.We are the world‟s

largest democracy, an assimilation of different

religions and cultures beautifully coexisting in

peace and harmony. It‟s time India capitalized

on its numerous achievements and capabilities

and gets reckoned for the same.

Ms. Apurva Joshi

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Delhi

16

The Brand Lifecycle

Brand life cycle defines the stages through which

a product passes after its development till it is in

the market. The stages in branding life cycle

include introduction stage – when the new

product is introduced in the market, growth stage

– when the product seeks to increase revenues

and its preference, maturity stage – the sales

growth saturates, decline stage – the sales

decline. Different stages entail strategies to

extend the existence of a product in the market

especially in the growth and maturity stage.

Branding strategies in various stages of brand

lifecycle

Each stage of the brand lifecycle requires a

different strategy with an objective of creating a

brand identity and shaping the customer‟s

perception of the brand. As explained by Idris

Mootee in his model developed in 1990‟s, over time

as the brands‟ power increases it evolving evolves

from being a product brand to a global brand.

Introduction Stage

During this stage, the primary objective is to create awareness about the product and to attract some

early adopters. Initially a major chunk of expenditures is advertising and promotion of the product.

Some companies announce the products and run ad campaigns before the actual launch. This

BRANDING IN THE DIFFERENT

STAGES OF BRAND LIFE CYCLE

17

creates awareness in the market and allows brands to tap in early experiencers. Optimal time gap

between the launch of the ad campaign and the product launch is kept, so that the demand can be

readily tapped and does not start to die out in wait of the actual launch. The marketing campaigns

focus on the descriptor attributes of the brand like taglines. It is necessary to clearly convey the

message through the tagline as ambiguity can lead to the brand not falling into any competitive

frame of reference. Fever 104.0 FM station attempts to promote an important concept of

straightforward and precise marketing through their tagline of „It’s all about the music”. It directly

pitches the station as a pure music station in a simplest possible manner.

Growth Stage

The market share begins to increase as the awareness has been created in the market through various

campaigns. The brand tries to create a loyalty amongst its existing customers and tries to project itself

as a preferred choice between competitors. Companies try to improve product quality, styling and

tries to enter new sectors. Yahoo evolved from just a search engine into a full package of web services

from search to shopping and gaming. It entered into sectors like mobile services, analytics services,

advertising etc. Companies also tend to promote a selling proposition that should be associated with

the brand. Future Group’s Big Bazaar came up with a fairly unpretentious but extremely effective

proposition of “Isse sasta aur accha kahin nahin” which has shaped the brands‟ image as a low cost

store.

Various companies like

BMW prefer to keep

their brands in growth

stage by logically

planned out

introductions over time

and thus not changing

a whole model range

at the same time. For

instance, with the 3

series, BMW introduces

the new sedan model

one year, the new

coupe the next year,

then the convertible,

then the station

wagon, and then the

sport. BMW often sees

its best sales numbers in

either the sixth or

seventh year after the

introduction.

Maturity Stage

Maturity stage is the most profitable stage in the product life cycle. The brand reaches its peak sales

and acquires a considerable market share. The sales continue to increase but at a decreasing rate

and tend to approach the point of inflexion. The primary objective is to extend the lifecycle and

continue to stay at this stage for as long as possible by defending the market share from the potential

18

competitors. As the brand is all grown up, and well established in the marketplace, associating an

aspirational aspect to it can improve the brand loyalty even to the extent of becoming a lovemark.

Nike’s ‘Just do it‟ is perhaps best example of taking a brand to the next higher level.

Decline Stage

The sales eventually begin to decline as the market saturates. This stage is characterized by falling

prices, weakening competitiveness and emergence of new products. The product has an established

brand loyalty but begins to lose profitability. The brands undergo a rejuvenation phase by launching a

new variant or by adding another set of features into the existing variant. Toyota followed this concept

by launching „Innova‟ as a replacement for its brand „Qualis‟ as soon as it hit the decline stage. Maruti

Suzuki on the other hand decided to reengineer „Zen‟ and came up with „Zen Estilo‟ to boost up the

sales.

In a nut shell…

A company‟s branding strategies must change as the product and market change over the product life

cycle. Products have a limited life and pass through different stages, each posing different challenges and

opportunities. The goal is to increase the brand life and market share by creating an optimal business plan

encapsulating the marketing, financial, manufacturing and human resource management strategies.

Co-authored by:

Piyush Marwaha Sahil Saini

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Kolkata

19

Nothing is fascinating as the war of brands. Even

more when you have a market leader with very

little competition for the past three decades

which enjoys a market share of 86% and after all

these years has stiff competition from the new

entrants. This is the scenario of the rapidly

growing instant noodles market.

The Battle is on

Indian instant noodle market is currently valued

at Rs.1300 crore and is growing at a rate of 25-30

% estimated per year. The total noodles

penetration is increasing and the market has

been lucrative because of its high profit margins.

With the taste of the people changing from what

it used to be in the past and noodles being

considered not only as tiffin for children but also

for lunch and dinner of adults the market is a

great future prospect

Maggi is to noodles as Xerox is to

photocopy. The name itself has become generic

and has ruled the market from 1984, when instant

noodles were first introduced in the Indian market

by Nestle India Ltd. It was challenged by Top

Ramen, an Indo Nissin product in 1990 but Top

Ramen failed to make an impact because of its

distribution failure even though it enjoyed good

brand loyalty. Currently, it has a market share of

slightly more than 80%. Taking cue of the

enormous growth potential of the noodles

market, FMCG majors have entered into this

market to challenge the supremacy of Maggi.

HUL has introduced the Knorr soupy noodles, ITC

has come with the Sunfeast Yippee which has

rapidly gained a share of 10% and GSK has let

out the Horlicks Foodles. Apart from these, we

also have private labels such as Future Group‟s

Tasty treat, Capital Food‟s Ching‟s Secret and

Smith & Jones. All this has led to the dip in market

share of Maggi from 90% in December 2009 to

around 80% in August 2011.

The Core of any brand- The Product

The basic feature of noodles is taste and Maggi

has spent years in innovation for a taste that

caters to the entire country. It‟s the taste of

Maggi that the Indian population is used to and

there are two possibilities in the future. The

consumer may want a change of taste and

would love to switch on to other brands or he

would stay with Maggi because it has created a

love mark in the consumers mind.

Maggi focusing on the former and

sensing the threat of losing consumer loyalty has

come with 6 different varieties of Maggi 2 minute

noodles i.e. Masala, Chicken, Tricky Tomato,

Thrillin Curry, Romantic capsica and now recently

“Guess the taste noodles” wherein the consumer

has to taste the product and name it. Also

focusing on the health aspect, it has come with

Maggi Vegetable Atta Noodles and the Maggi

Vegetable Multigrainz noodles.

Yippee on the other hand has only two

flavors: Magic masala and Classic masala.

Though the flavors are minimal, Yippee has an

added advantage of being round stacks, as

opposed to the usual rectangular ones which

ensure longer noodles strands. Also, it resists

clumping when served. Both the above

mentioned attributes stand as a differentiator

from Maggi which would be a big positive for the

ITC brand.

BRANDS HEAD-ON:

THE NOODLE RIDDLE

20

Foodles has come up with two flavors:

Crazy Curry and Ala Masala. The main point of

differentiation of Foodles is the health conscious

factor being added on their noodles and the

same has been illustrated in their publicity

campaigns. Primarily focusing on health they

have also introduced a health maker sachet

which contains the essentials of 5 vitamins with

the noodles.

The Moolah factor

The price of Maggi is Rs.10 for 85 gm. and this

induced the rivals to launch the product in the

similar price line, adopting the going rate

approach. Yippee was launched at an equal

price of Rs.10 for 90 gm. and Foodles entered the

market at Rs.10 for one flavor and Rs.15 for

another, both being packs of 80 gm. each. The

recent entries made sure that the cost is no more

expensive than the competition.

Dense and Long Noodles reaching the masses

The major factor in the success of these brands is

their distribution network. Currently, Maggi

through Nestle has a reach of around 3 million

outlets. ITC has a reach of 2.5 million and is

currently targeting 5 lakh outlets. ITC with the best

distribution network and with the success of its

chips brand Bingo against Lays has started large

scale sampling of cooked noodles in large super

markets such as Big Bazaar. Foodles has a reach

of 2 lakh outlets out of GSK‟s total reach of 1

million. In the future, it all depends on how well

these companies make use of their distribution

network.

What each noodle says

Maggi initially targeted working women and later

on added kids into this list. By the help of various

ads and punch lines which included mother and

children. Punch lines such as “Mummy I‟m

hungry”, “Taste bhi health bhi”, “Good Food

Good Life” and “Me n Meri Maggi” targeted the

specific segments.

Foodles mainly stressed on health and

nutrition and positioned itself as “Snacks with

nutrition”. This happened mainly because of

growing health consciousness in Indians besides

the growing penetration of noodles in our

country.

Yippee positioned itself as happy, vibrant

and fun loving that would appeal to the children.

The ads were designed with this aspect in mind. It

is also being promoted based on its key

differentiating attributes of being round and non-

sticky, which Maggi lacks. Besides this the “point

of sales” marketing strategy used by ITC will also

play a major role in deciding its share of the

market.

The noodle wrap

Maggi comes in a yellow pack and Yippee has

introduced the pack with yellow and red. Yellow

will directly connect the pack with Maggi and

the red colour will provide an added sense of

vibrancy to the pack. This clearly shows that

Yippee wants to eat up the share of Maggi and

this in fact will have a direct impact on Maggi.

This is the same strategy that ITC followed while

introducing the Sunfeast Dark Fantasy. The

packaging was in a similar base colour but more

appetizing and rich than Britannia‟s Pure Magic.

This has led to the growth in its sales and a similar

growth in Yippee at the cost of Maggi can also

be expected. Foodles on the other hand comes

in green packet which symbolizes health and

which supports its positioning as a healthy

noodle. Foodles has also come up with the family

pack more or less similar to Maggi.

The road ahead

Though the fight between the brands seems to

be unequal with Maggi being market leaders

there is no guarantee that they will stay as

leaders forever. The global markets have seen

many pioneers falling to new entrants and

eventually leaving space to new leaders. This

can also be the case in the noodles segment.

Maggi has to make sure that it stays in the top by

retaining and also acquiring new customers

through innovation, effective distribution and

marketing. ITC which relies heavily on its

distribution should focus more on the taste

aspect which suits the Indians if it wants to make

inroads into the existing market. Foodles on the

other hand has to improve its distribution network

and step its marketing initiative. Future will tell

whether the leader stays at the top or is toppled

by the other FMCG giants.

Jayanth Raj Prashant Sishodia

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Kolkata

21

From the conveyer belt to your hands

What can be better for a sales and marketing enthusiast than to accompany the area sales

manager of one of the most successful FMCG companies on his sales beat? The exhilaration of being out

there and seeing things transpire in front of one‟s eyes is incomparable and difficult to sum up in a few

pages. The wisdom dished out in the real world far surpasses the theoretical knowledge contained in the

pages of any marketing textbook.

The day we spent with the Colgate Palmolive Sales team gave us invaluable insights into the world

of urban retailing. We learnt that in the world of retailing, the product is the muse that must appeal to the

discerning eye of the consumer, luring him into its ambit, casting its sweetly seductive spell around him.

The Indian retail sector is a medley of stores of different formats. It embodies the diversity that India

aptly personifies. Just like India is an amalgamation of people of different castes, creeds and religions, the

retail sector is a patchwork of modern retail stores, general stores, kirana shops, mini marts, paan shops etc.

Each catering to its unique clientele, each store is indispensable to its dedicated set of customers.

The various kinds of formats where Colgate Palmolive operates in general trade are as follows:

Kirana Stores- Nestled quietly in residential areas, these stores enjoy the patronage of the inhabitants of the

localities where they are found. Unassuming, convenient, stocking the essentials, and with personalized

service, this is where the customer heads for his usual top-ups. Or to put it simply, this is where you would go

when you wake up one morning to realize that you have run out of toothpaste.

General Store- Larger than the kirana store and strategically located, the general store caters to a wider

customer base and offers a larger assortment of products. This is the place where the meticulous shopper

heads out with his list of all that must be replenished during the course of the month/fortnight.

Medicine Store- The store offering the panacea to the ills hounding humanity, this is where people come

looking for solutions to their problems. The purchases made from these stores are usually planned and the

people coming here are not impulsive shoppers but those with specific purchase needs.

Wholesale stores- These mammoth stores are the one stop refilling shops for all the small kirana stores, pan

shops etc. These bulk sellers are the channels that replenish the small stores when they run dry.

Minimarts- The minimart is a hybrid of a mall and the general store. These stores provide ample opportunity

to the customer to interact with the product. Located in posh areas, these cater to customers looking for a

wider range of products and boast of many facilities like air-conditioning, aisle displays etc.

So although the retail sector might seem cluttered, there is order in this chaos, just like there‟s an

innate beauty in anarchy.

MARKING COLGATE PALMOLIVE

22

While purchasing a tube of toothpaste, who would have actually thought of the intricacies of the

supply chain, or the diligent planning that actually goes into getting the finished product from the factory

to the nearby kirana shop.

A brief snapshot of the Colgate Palmolive distribution model would look like this:

The manufacturing of the products takes place in Baddi, Himachal Pradesh, after which they are

moved to the company warehouses. From here the goods are dispatched to the depots, after which the

next stop for the finished goods is the stockist. The stockists dispatch the goods to the different retail stores,

classified under the different formats based on how the consumer perceives them, as mentioned above.

This long chain finally ends at the consumer‟s doorstep. So now you know how the tube of Colgate that

you use daily to brush those pearly whites ended up in your home.

After Mr. Rajiv Rajan had explained the process of how the products of Colgate-Palmolive move

from the factory to the retailers, we had the opportunity of benefiting from a tour of the different kind of

retail shops in Malviya Nagar from where their products are sold. We were accompanied on the tour by

Mr.Ravinder Singh Chauhan, a colleague of Mr. Rajan‟s, who took the pains of elaborating upon the

nuances of the ways in which Colgate-Palmolive and indeed most FMCGs attempt to attract consumers

towards their products and away from that of their rivals‟ in these shops.

All of us must have seen Colgate-Palmolive‟s products in possibly every retail shop that we have

visited in our lives. However, the way in which Mr. Rajan and Mr.Chauhan explained the strategy that goes

behind the placement of their products in a certain way and in certain locations of these shops helped us

view things in a different light altogether. For example, we understood the importance of keeping a

company‟s products at the eye-level of consumers, using as many product facings as possible (face on in

case of larger stores and end on in case of smaller ones where there‟s a space constraint), keeping the

Factory Warehouse Depot Stockist

Hub Satellite

Pictures of one of the Plants, Goa

23

brands the company is trying to „push‟ and the ones with special offers in front of the others, and

positioning the special focus brand in strategic locations in the store.

In the case of Colgate, the focus brand was the recently

launched Colgate Sensitive Pro Relief (CSPR), we could therefore

clearly understand the thinking behind placing the brand in an FSU

in a relatively big departmental store like Om Daily Needs and in

strategic locations such as aisle interrupters in smaller stores such as

Chaudhary Ram & Sons and Harmilapi Stores. We also understood

that the toothpaste, mouthwash and toothbrush brands are usually

located close to each other as they serve similar purposes.

We also observed how Colgate brands often enjoy the space of a full shelf in most stores, which is

not the case with its competitors. This is a clear reflection of their high market share in the toothpaste

category. Of these, apart from CSPR, we also observed the Colgate Total and Colgate Max Fresh brands

being the ones with the most product facings while a brand like Colgate Dental Cream (CDC) was

generally placed behind them. This was explained by the fact that although all three brands enjoy

immense popularity, CDC enjoys a greater market share in the rural market while the others generally enjoy

a higher demand in urban markets and are therefore placed within easy reach of consumers. Toothbrushes

such as the Colgate Super Flexi, Colgate Zigzag and Colgate Cibaca also occupied pride of position in

most of these stores.

However, the fact that the Palmolive arm of Colgate-Palmolive contributes a low percentage to

their sales was evident from the lack of visibility of Palmolive products. The only brands we saw were

Palmolive shaving cream, Halo shampoo and Palmolive Thermal Spa Facewash. However this may also be

explained by the fact that according to Mr.Chauhan, the products are currently out of stock at the

warehouses. Also low in visibility was the Colgate Plax mouthwash which again may be explained by the

fact that the mouthwash category is possibly yet to substantially penetrate the oral care products market in

India.

24

Pictures of the Branch Office, Chennai

In the kirana stores such as R.K. Confectioner & General Store and Kishan Lal Store, we finessed a

different setup altogether. Products were not classified according to type as in the departmental stores

and the same product could therefore be found in different areas of the same shop. However, one could

find both low end as well as high end products in these shops, mainly due to the varied economic classes

of their clientele.

Again, in medical stores such as Prakash Chemist, Narang Brothers, Batra Medico, Raman Medicos

and Genuine Medicines we observed that while Colgate toothpastes and toothbrushes were present here

as well, with usually entire shelves being devoted to them, as a testament to Colgate‟s product extension,

pharmaceutical products like Gel Kam and Perio Gard were also present, albeit in lesser numbers.

Finally, Mr.Chauhan was kind enough to drive us over to Madangiri, an area which is home to large

wholesalers who sell their products to smaller retailers who come from as far as 5 or even 10 kms around.

They usually stock up on almost all products of particular sectors, although they obviously prefer those with

a higher demand such as Max Fresh and Total toothpaste, in case of Colgate‟s products. Even here, in

stores such as Gupta General Stores and Jindal Stores, we saw how Colgate is pushing CSPR by providing

them with table-top showcases devoted only to this brand.

This entire process gave us an overview of the entire gamut of retailers involved in the sale of

Colgate-Palmolive products to their consumers. So, in the course of a few hours, from being utter novices in

the field of sales and marketing we became attuned to the flavor of the workings of this highly intricate

world, albeit to a limited extent.

Abhimanyu Das & Apurva Joshi

MBA (IB) 2011-13, Indian Institute of Foreign Trade, Delhi

Special thanks to Mr.Rajiv Rajan and Mr. Ravinder Singh Chauhan of Colgate-Palmolive and Ms. Prerna

Parija of IIFT 2010-12

25

Talent Acquisition & Development

Shivani Singh (HR Manager, Colgate-Palmolive)

What are the activities designed for a conducive work environment

at Colgate Palmolive?

Colgate is proud of its healthy work culture. Our flexi time policy promotes

work – life balance. We are focused on having a diverse workforce. Activities

like “Annual Day” are great opportunities to interact with one another.

Employees get to hone their competencies by participating in global training

modules.

Some new initiatives include the “Colgate Women‟s Network” and “Health and Wellness” activities.

Employer branding is fast gaining importance and more corporates are working towards it. Are

there any conscious efforts put in by the company or any integrated approach towards enhancing

the employer brand?

We manage our Brand on campuses by engaging effectively

with students.

Synergy as a concept is very popular. How do you design a job

in order to get the best out of the employee?

We focus on the person – job fit at the time of recruitment itself.

The aim is to hire people whose functional and behavioral

competencies match the requirements of the job / role.

Is there any Career Development Path followed or any

framework for the same? How about interdisciplinary switch?

Career Development Paths are shared on campuses at the time of hiring. These are

indicative plans and depend on business situations, position availability and individual

performance.

Employees maintain “Individual Development Plans” where they capture their strengths, areas of

improvement, career aspirations and development plans. These are constantly reviewed and

updated.

What are the essentials you look for in a potential employee to be a proper fit in Colgate-

Palmolive?

It is important for us to understand if the potential employee‟s value system matches our ethics and

beliefs. Assessing the cultural fit of the individual is an integral part of our hiring process. Along with

these traits, our focus is on understanding the competencies that the individual exhibits.

Your fondest memory at Colgate-Palmolive…

Colgate is a company with a strong culture of teamwork. Working with my colleagues in HR as well

as the Business has been a great experience. Most of the cherished memories revolve around

working in these teams.

Interviewed by:

Gaurav Gudhka & Prerna Parija

26

Rendevous with Parul Patel, Marketing

Manager, Colgate-Palmolive

How has been your journey with Colgate-Palmolive?

I have been fortunate to have different experiences at Colgate

over the last few years. I have worked on 8 assignments in 10

years. Launching 2 brands – Colgate Max Fresh and Colgate

Active Salt – was a highlight in my career. I also had an

opportunity to work with the Global Marketing Team which

was a great learning.

What kind of integration do you witness between Business

strategy and Marketing strategy?

The Business and Marketing strategies are very much linked with each other. A robust

marketing strategy is imperative to deliver the business. Thus, they are intertwined.

What kind of challenges and opportunities do you face in the Indian market?

The market is rapidly changing and consumers are constantly evolving. The needs of the

rural market need to be kept in mind. Thus, it is important to adapt to changes at a fast

pace.

Any specific strategy employed by Colgate-Palmolive to overcome such a challenge in

Indian market that you would like to share?

The company is evolving and innovating! We are reaching out to our consumers with

specific product solutions like Colgate Plax Mouthwash and Colgate Sensitive Pro Relief.

Products like these represent the science behind the smile.

Are there any products planned for the future targeted only at the Bottom of the Pyramid

market?

The potential is always being worked upon. It‟s important to see how we can make our

existing products available in a manner that is profitable to the organization.

Your fondest memory at Colgate-Palmolive…

The Marketing team is like a college campus. The people I work with are not just

colleagues but my friends. We look forward to our parties – in order to create great

memories and celebrate success together.

Head Office, Mumbai

Interviewed by:

Gaurav Gudhka & Prerna Parija

27

The other day, during the course of my aimless

web-wanderings I came across a very interesting

blog post on India. Authored by a Westerner, it

speaks of how his perception about India has

undergone a sea change over the last three

decades – “What was once the land of mysticism

and magic is today the land of software boom

outsourcers, bankers and Bollywood films.”

Now, the reason I quote his „fairly commonplace‟

statement in this article is to underline the

contribution of our service brands in raising the

country‟s standing around the world, so much so

that India has become synonymous with a strong

service industry.

It comes as no surprise then to know that Indian

Hotels and Oberoi Hotels are ranked among

some of the best hotels in the world (Source T+L)

further enhancing India‟s reputation for

hospitality. In fact, Indian Hotels Company Ltd

(IHCL) is the largest hotel operator in South Asia

with an inventory of 12,200 rooms (103 hotels)

across India and international markets (USA,

Australia, Maldives, Malaysia, UK, and Sri Lanka).

Also, the only Indian brand that figures among

the top 100 brands in the Millward Brown BrandZ

2011 list – „ICICI‟ belongs to the services industry.

So what‟s the secret recipe for the success of our

service brands? How did ICICI manage this

honour? With a soaring population and an ever-

expanding middle class base, consumer

spending and demand for goods and services in

India has been increasing exponentially. A brand

which is able to capitalize on the same by

building strong equity and capture a significant

portion of the market share in India is bound to

go big because of the sheer size of the country‟s

population. This is one of the major reasons

behind ICICI‟s success story - its high prevalence

in the domestic market.

However, sustaining the brand‟s success story in

the domestic market is easier said than done as

even well-established homespun service brands

will have to contend with the entry of highly

reputed international service majors. Cases in

point - Riding on a growing propensity of eating

out and growing disposable income, several

businesses have either raised funds or are

planning to do so to invest in Food and

Beverages retail.

How have Indian brands been reacting to such

competition?

Café Coffee Day, India's largest café chain, has

come out unscathed since its birth despite

innumerable challenges it faced from well-

established and highly-experienced competitors.

CCD crossed over 1000 cafes throughout the

nation by 2011 and made its foray into the

international market of Coffee cafes by opening

outlets at Karachi, Vienna and most recently in

Prague. Café coffee day, in June 2010, acquired

Café Emporio - A café chain from Czech

Republic. Cafe Emporio has 11 cafes in Czech

Republic - 7 of them in Prague and 1 each in

Brno and Olomouc and 2 at Freeport-Hate. The

CCD story is not just in its numbers, though. Harish

Bijoor, a visiting professor at the Indian School of

Business (ISB) at Hyderabad and CEO of Harish

Bijoor Consults opines - "Coffee Day has brought

about a paradigm shift in the café space in

India”. Subroto Bagchi, co-founder of the IT and

R&D services company Mind Tree Consulting,

THE INDIAN SERVICE SECTOR:

SERVING UP INDIA’S STRONGEST BRANDS

28

and author of the book, The High Performance

Entrepreneur, adds - "Café Coffee Day has

redefined the coffee experience; it has been a

trendsetter in the café space. Siddhartha has

raised the coffee from a brew to an experience."

CCD is also experimenting now with new formats,

such as lounge cafés serving plated meals in

addition to the sandwiches, pastries and

croissants offered in the cafés.

What emerges from the CCD example is the

importance of relentless innovation and

continuous brand building, something which

many Indian service brands have adopted quite

well – Bharti Airtel‟s logo communicating its

global presence and synergy of worldwide

operations, IHCL planning to add eight hotels

across various

geographies between

2011 and 2014 to cater to

its growing set of

consumers.

Indian services brands

thus have done

themselves some good by

understanding the timely

importance of occupying

space in the minds of

consumers in addition to

occupying space in the market. This has helped

many services brands leave a global impact

while brands of several other categories have a

long way to go.

Bhavna Verma

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Delhi

29

Last year on July 23, Proctor & Gamble (P&G)

launched the brand campaign for the new

Pantene by putting up hoardings across Mumbai,

saying „A Mystery Shampoo!! 80% women say is

better than anything else'. The

product was to be unveiled on August

1. However, P&G‟s arch rivals, HUL

figured out that the shampoo brand

was Pantene. HUL along with their

advertising agency, Ogilvy and

Mather decided to take the fight to

P&G by using their ad-campaign

strategy against them. On July 28, HUL

put up hoardings which said: 'There is

no mystery. Dove is the No.1

shampoo'. By killing the mystery, HUL

ambushed P&G. HUL is the market

leader with a market share of 44%

while P&G is a distant second with 24%

of market share. As per Nielsen Dove is

way ahead of Pantene, Dove has a

value share of 18.6% as compared to

10.1% of Pantene.

Ambush marketing has been defined as a

marketing strategy in which a competitor seeks

to steal the steam of marketing campaign of an

official sponsor of a particular event. The term

"ambush marketing" was coined by the famous

marketing strategist Jerry Welsh, while he was

working as the manager of global marketing

efforts for the American Express Company in the

1980s. It has been traditionally

associated with major sporting

events such as Olympics,

where big corporations try to

fuel their brand value by

creating an association with an

event without being authorized

to do so. However, the

concept of ambush marketing

is no longer limited to sporting

events. The example presented

above is a classic case of

ambush marketing. So to put it

quite simply, ambush marketing

is a company feeding off its

competitor‟s campaign.

In the ever dynamic sphere of

marketing ambush marketing is

an extremely interesting

concept. Using a competitor‟s

weapon is an intricate art. One

has to be extremely cautious of designing the

strategy in such a way so as to not only generate

maximum steam for the brand but to also avoid

getting entangled in legal hassles. The

„Ambushers‟ need to refer to themselves and to

AMBUSH MARKETING

30

their goods and services in a crafty manner so as

to not infringe upon Intellectual Property (IP)

protection of the target. The „Ambusher‟ might

also end up popularizing the competitor‟s brand

as well. The company has to allude to its

competitor‟s campaign in a subtle yet profound

manner, a thin line to tread on surely.

There are various types of ambush marketing,

some of which are:

"Predatory" ambushing: The „Ambusher‟

intentionally associates itself with an event being

officially sponsored by a competitor in order to

confuse consumers & steal market share. An e.g.

is when in 1984 Olympics Kodak sponsored TV

broadcasts of the Games as well as the US track

team despite Fujifilm being the official sponsor.

"Coattail" ambushing: As per this strategy, the

„Ambusher‟ plays up a legitimate connection

with an entity which does not involve any

financial sponsorship. In 1998 FIFA World Cup Nike

sponsored a number of teams competing in the

Cup despite Adidas being the official sponsor.

Ambushing via trademark/likeness infringement:

This is a more audacious form of ambushing

wherein the „Ambusher‟ makes a reference to

tournaments, teams or athletes, words and

symbols. Before the 2002 football World Cup, for

instance, Pepsi ran ads featuring prominent

footballers like Roberto Carlos. An Argentine

court ordered Pepsi‟s ads off the air for showing

“Tokyo 2002” in shots featuring soccer stars,

though the soft drink giant had nothing to do

with the event.

Ambushing "by association": In this form, there is

usage of images or words in a manner so as to

create an illusion of an association to an event

which in reality does not exist. A classic e.g. is

Pepsi‟s series of advertisements titled "nothing

official about it" targeting the official sponsor,

Coca-Cola during 1996 Cricket World Cup.

Ambushing "by distraction": This requires setting

up of a promotional hoarding or event in close

proximity to a competitor‟s campaign, a tacit

attack. As an e.g. when Jet Airways came up

with a hoarding saying “We‟ve changed”, their

campaign was ambushed by Kingfisher Airlines

who put up a hoarding vertically above Jet‟s

hoarding, saying “We‟ve made them change”.

Talking about the Kingfisher Airlines-Jet Airways

war, it is interesting to note that Go Air also joined

the war of words by placing its hoarding

vertically higher than the other two, stating “We

have not changed we are still the smartest way

to fly”. After having acquired Sahara Airlines, Jet

renamed it JetLite. Many changes were

introduced which were being promoted through

this campaign. The uniform of the crew was

changed so as to align it with rest of the Jet

crew. Improvements were made in the quality of

food and booking engine behind the JetLite

website. In order to make the seats more

comfortable, most of the seats of JetLite were

also changed. However Kingfisher totally

hijacked the campaign of Jet in a classic

exhibition of ambush marketing. The Jet Airways

group, comprising of Jet Airways, Jet Airways

Konnect and Jet Lite, leads the industry with a

market share of 27% followed by Kingfisher airline

with a share of 20%.

One also needs to acknowledge the negative

impact ambush marketing has on business in

general. A sponsor pays heft amount of money

to associate itself officially with an event and

expects exclusivity in return. Ambush marketing

not only infringes on its exclusivity but also takes

31

away a major chunk of market share. In such a

scenario a company may become apprehensive

of going for official association and instead

prefer „ambushing‟. Given that a major chunk of

any sporting event comes from corporate

marketing sponsors, broadcast rights fees, and

royalties from official merchandise licensees,

such a case is highly undesirable.

Regardless of the high wit and in some cases,

humor; it is imperative to either create a new law

or update existing laws on IPR so as to bring

ambush marketing under the ambit of judiciary in

order to safe-guard the interest of official

sponsors. However, drafting such a legislation

would be extremely tricky given the indirect

nature and tactics of ambush marketing. As far

as the ethics dimension is concerned, marketing

is a field where the line is extremely fine and

majority of decisions fall in a grey zone. It‟s

unavoidable given the nature of the work. When

you have to kill the competition to promote your

brand one tends to perceive these things as

occupational hazards.

Lalit Gupta

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Kolkata

32

Change is inevitable and this has been substantiated by the changing customer and brand relation round

the world in 2010 after the change in spending patterns post 2008 recession. But this time the customers

came back well informed and were aware of what they were buying, thanks to social media, technology

and other vehicles aimed at customer awakening. So, the task for the brands was not only to retain their

customers but also to keep the processes to be as transparent as possible in order to develop a deeper

relationship with them. As expected, the so called „stereotyped‟ organizations faced some difficulties. Still

brand plays a major role in the lives of customers as it brings trust in addition to choices in their lives. Be it

Coca-cola or Ford, these names still hold their customer‟s trust. It was made possible only because of the

better integration of these brands with their customers, be it

through a social media campaign or through utilizing their

feedback in creating a better product.

Commitment: A measure of organization‟s internal

commitment to or belief in its brand. It is the extent to which

the brand receives support in terms of time, influence and

investment.

Protection: This examines a secure a brand is across

dimensions: from legal protection and proprietary ingredients

to design, scale or geographical spread.

Clarity: Brand‟s values, positioning and proposition must be

shared across the organization, along with a clear view of its

target audiences, customer insights and drivers.

Responsiveness: This looks at brand‟s ability to adapt to

market changes, challenges and opportunities. The brand

should be able to constantly evolve and renew itself.

Authenticity: This asks if a brand has a defined heritage and a

well-grounded value set, as well as if it can deliver against

customers‟ expectations.

Relevance: This estimates how well a brand fits with customer

needs, desires and decision criteria across all appropriate

demographics and geographies.

Understanding: Customers must have an in-depth

understanding of brand‟s distinctive qualities and

characteristics, as well as those of the brand owner.

Consistency: This measures the degree to which a brand is

experienced without fail across all touchpoints and formats.

Presence: This measures the degree to which a brand feels

omnipresent and how positively consumers, customers and

opinion formers discuss it in both traditional and social media.

Differentiation: This is the degree to which customers perceive the brand to have a positioning that is

distinct from the competition.

Criteria for inclusion and the methodology used

Naturally, choosing the top 100 brands cannot be a stroll in the park, and so the criteria and the

methodology chosen are vital. The brands eligible to be a part of this analysis had to fulfill certain

requirements: the brand should be global, visible and relatively transparent in financial results with a public

profile and awareness beyond its own marketplace. The following three criteria were adopted to

determine the best brands:

REVIEW OF THE BEST 100 GLOBAL BRANDS

2010: A Summary of Interbrand’s Report

10 PILLARS OF BRAND

BUILDING

Though the volatility of customer base

is quite common these days for

smaller brands, but what‟s the magic

formula used by some well known

giants to engage their customer.

It‟s simply the 4P‟s of marketing

redefined as a set of 10

characteristics as mentioned below

which a brand needs to imbibe in

order to sustain for a longer time

(Coca-Cola for sustaining 124 years is

a great example).

Commitment

Protection

Clarity

Responsiveness

Authenticity

Relevance

Understanding

Consistency

Presence

Differentiation

33

1. Financial performance: After calculating the net operating profit, charges used to generate a

brand‟s revenues are deducted, which is then multiplied with the weighted average cost of

capital. The financial performances are analysed over a five year period, and also expected

returns after the forecast period.

2. Role of brands: It is the excess of demand which comes because of a product or service being

branded over a product or service which was unbranded.

3. Brand strength: It is a 100 point scale measured over the ten parameters mentioned above, relative

to other brands, and in case of special brands, to other world class brands.

• APPLE +37%

• GOOGLE +36%

•BLACKBERRY +32%

•HARLEY DAVIDSON -24%

•TOYOTA -16%

•NOKIA -15%

TOP 10

BRANDS OF

2010

1.COCA

COLA

2.IBM

3.MICROSOFT

4.GOOGLE

5.GE

6.McDONALDS

7.INTEL

8.NOKIA

9.DISNEY

10.HP

TOP 3 LOSERS 2010

HOW THEY DID IT

TOP 3 GAINERS 2010

HOW THEY LOST IT

The fact that Coca Cola retained its

numero uno status just shows how

seriously and judiciously it handles its

brand image, and the astonishing

statistic of it being a 124-year old

company has not stopped it from

reinventing itself. Through its catchy ad

campaigns, and most of all its

embrace of the social networking

space like Facebook, Twitter (it has

immense fan following on both), it has

stayed in the public consciousness.

Also, with its corporate social

responsibilities in which, too, it is a

leader, Coca Cola has etched an

indelible mark in the hearts and the

psyche of the global, ubiquitous

citizen.

Since the onset of recession, Harley-

Davidson, like most auto companies in

the world, suffered many reverses. That

it managed to hold on to a place in

this list suggests its resilience as a

brand, and its brand image. The

recession has also led to the

restructuring of the brand as a whole,

which saw discontinuation of products

such as Buell. But therein lies the catch.

The longer H-D postpones innovation,

the sooner will it sound its death knell,

and it is also very suggestive that while

it survived on this list, it has barely

managed to hold on, and matters are

compounded by the fact that it‟s CEO

is not an ardent loyalist of the brand by

not riding a Harley.

34

Sector-wise Analysis of Brands

The above figure is very suggestive of the changes that have occurred over the last fiscal, and something

which bodes well for the future too. It is basically a representation of the annual growth in combined brand

value of some sectors of the Best Global Brands for 2008, 2009, and 2010. These values may be affected by

entry or exit of a brand. For instance, the financial services sector, which got a solid thrashing in 2009,

bounced back to post a very respectable rate of growth, thanks to aggressive entrants and stable banking

practitioners. Most notable among them is Santander, which debuted on the list at a respectable 68th.

Other companies in this sector include JP Morgan(29), HSBC(32), Citi(40).

As for internet services sector, Google(4) rules the roost, with its aggressive marketing tactics, and its

innovation which is unmatched. Other brands in this sector include Yahoo!(66), which has tied up with

Microsoft.

Regarding the food sector, convenience is still the mantra to be adhered to for brands. Established brands

like McDonald’s(6) and KFC(60) are following the mantra of smart packaging, and creating new occasions

for customers to visit them. KFC is also expanding in markets like India, in keeping with its global strategy.

Nowadays, all brands have to master the invasive and pervasive technology, through which they can

reach everybody under the sun. Be it luxury brands like Tiffany(76), retail brands like H&M(21) and Zara(48),

embracing the digital and social media is the way to a successful future for every brand which has made

its presence in this list. It is equally true for fashion brands like Gucci(44), Louis Vuitton(16), or Burberry(100)

as well, any brand which masters technology masters the market and the minds of the customers.

4% 2%

15%

1%

-5% 1%

24%

-10%

4%

-9%

3%

1%

1%

-40%

12% 15%

-4%

8%

-4%

8% 6% 8%

26%

-3%

27%

1%

-3%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

2008

2009

2010

35

A break up of the brands which made it to the top 100 from various countries and their total worth is given

below:

Some new brands which made their entry this year were: Burberry (100), Zurich (94), Heineken (93), Johnnie

Walker (92), 3M (90), Corona (85), Credit Suisse (80), Jack Daniels (78), Barclays (74), Santander (68)and

Sprite (61).

The Final Word

According to the International Monetary Fund, emerging markets now represent about one third of the

world‟s GDP and are growing much faster than mature economies. These markets are also fertile ground

for creativity and innovation: an ideal environment for dynamic, value-creating brand growth. A changing

environment is business as usual in fast-developing markets. To take full advantage of the many

opportunities available, brands must learn how to read, react and go with the flow.

Summarised by:

Harshit Didwania, J. Rahul & Prashant Sishodia

MBA (IB) 2011-2013

Indian Institute of Foreign Trade, Kolkata

36

A Visit to Vasant Kunj area of Delhi has become a pilgrimage

(a topic of keen interest) for people who worship high end

luxury brands, reason being the opening of new mall DLF

Emporio consisting of 3 floors of only high end luxury brands. But

keen topic of interest to the marketers is the management of

these luxury brands

and their

management in

the Indian

context.

Luxury as a concept is

defined within the scope of socio-psychology as a result of its

connection to a culture, state of being and lifestyle, whether it

is personal or collective. When linked to brands, it is

characterised by a

recognisable style, strong

identity, high awareness, and enhanced emotional and symbolic

associations.

A luxury brand is one which is known to everyone, desired by

everyone but consumed by only a privileged few. In order to

become a consumer for such luxury brands you need to cross a

few walls called by economist as entry barriers. These walls or entry

barriers are created through pricing, exclusive distribution and

aesthetics.

Any luxury-goods marketer needs to start with the knowledge that

no one needs your stuff, anyway. You have to transform your goods

into an experience to make a difference to the consumer.

Exclusivity in luxury products is changing from price-driven to scarcity-driven. Limited editions of some high

end luxury cars like Porsche and Rolls Royce are few such instances. For others, the desire for scarcity

translates into events. For example there is a restaurant in Australia which takes bookings only through

internet; no one knows its location. On the day of invitation 50 guests are invited to a secret location which

they are told not to disclose to anyone and they do so as they feel exclusive about the fact that they are

among the selected few who have been invited to such a unique experience. The restaurant charges

premium for this exclusivity.

LUXURY BRAND MANAGEMENT

37

One more important aspect of a luxury brand should be in terms of the luxury in

after sales service and great perks which come along with the luxury products.

The often quoted example, Harley Davidson has exclusive bike clubs for the

owners of the bike. Members of this club get invitation to various bike trips

organized by Harley Davidson and get an invitation to exclusive parties organized

by Harley Davidson.

The size of the luxury market in India

is expected to reach USD 30 Bn by

2015, up from USD 3.5 Bn in 2007.For

a luxury Brand to succeed in India

localization of marketing strategies is of prime importance.

This does not mean promoting the product through a local

celebrity or putting Indian print on the product. This goes as

deep as understanding the cultural differences between

various groups in India. India with its vast number of

languages, religions, festivals etc is a perfect example of unity in diversity. So it is about understanding the

difference between the outgoing and outspoken nature of a Punjabi and a soft approach of a Bengali.

Brands like Harley Davidson have also localised their approaches,

identifying important events and celebrations amongst potential

clients. These events include road shows and rock concerts.

Getting foothold in the Indian sub-continent is a challenge for every

Western luxury brand that has tried to penetrate this complex new

market. The brands who are willing to better understand and

connect with the local Indian consumer will be the ones who will be

successful.

Role of a Luxury Brand manager

The primary role of a luxury brand manager is to understand the

heritage and history of the brand and to make sure that the brand

becomes popular and still retains its exclusivity. He should make sure that brand becomes popular among

the masses in terms of desire and at same time induce high end customers for purchase.

Networking with the clients by attending dinner parties and throwing promotional event parties is one of

the most important aspects of the job of a Luxury Brand Manager. It is essential for luxury brand managers

to be in love with their product and believe that the company offers a value addition in terms of status and

elegance to its client. A luxury brand manager needs to constantly question and redefine the contours of

luxury keeping in mind changing perceptions and tastes of people.

To conclude it can be said that the luxury Market around the world is changing with the emergence of

newer market in India, China, Middle East, Mexico and Brazil. There is a shifting of purchasing power from

the western world to these markets. It is believed that in the next decade the combined revenue of these

regions would surpass those of Europe, U.S.A or Japan. These market dynamics are changing the luxury

landscape, and therefore luxury management practices require revisiting and refining the current practices

to adapt to the local regions of these countries.

Siddharth Girdhar & Rajat Sabharwal

MBA (IB) 2010-12

Indian Institute of Foreign Trade, Kolkata 38

Guerilla Marketing | It refers to unconventional, innovative, flexible, simple, fun, highly targeted marketing

strategies intended to get maximum results using minimal resources (time, money, energy). It involves

unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts,

or any unconventional marketing.

E.g.1. Duracell: Placed a Torch with Duracell

written on it at the headlight of the bus in such

a way that it seemed the headlights are

operated through the Duracell batteries.

Similarly on a advertising post with continuous

light.

E.g.2. Alzheimer‟s New Zealand: Created a

Eraser USB Stick wherein the USB‟s cap had

“Alzheimer‟s Eraser” written on them, and

“Your Memories, Save them” written on the

USB Stick

Meme | A meme is a self-explanatory symbol, word or a combination that immediately communicates

an entire idea. It is capable of breaking through today's sensory overload. It can be used as a shortcut to

communicating value in an increasingly overcrowded marketing environment. It can immediately

communicate to prospective clients who you are and why they should do business with you.

E.g.1. Sprint: Pin Dropping. Often people characterize a quiet environment as being so quiet you can hear

a pin drop. Using that single thought, a graphic representation of a pin dropping marketing was created.

When people see this meme, the pin drop, they know it means clear communication.

E.g.2. Malboro Cowboy: Became a symbol for rugged individualism and freedom. Europeans immediately

understood its meaning because it represented so many things that they had seen only in movies before

and it became hugely successful.

Reverse Graffiti | Also known as clean advertising, it is a method of creating temporary images on walls or

other surfaces by removing dirt from a surface. Because it is temporary, biodegradable, and no hard

materials such as ink, paper, or chemicals are used in its production, it is considered an environmentally

friendly way of advertising. It is a simple but effective media for getting your advertising message onto the

streets, contrasting sharply with the dirty surface and thus standing out.

E.g.

Mnemonic Branding | It is a brand retention tools that help customers recall larger pieces of information

through short verbal and non-verbal connections like a short poem, word, music, image, logos, and punch

line, etc. It helps in increasing brand recall and brand perception, generates an emotional attachment

with the brand, thereby, increasing the brand loyalty.

MARKETING LINGOS

39

E.g. Nike Swoosh Logo, Shell Graphic, Amul‟s utterly butterly girl, Zoozoos of Vodafone, „Intel Inside‟ Sound

and punch lines like „Kuch Meetha ho jaaye‟ by Cadbury, „Thanda Matlab Coca-Cola‟ etc

Multi Level Marketing | MLM is a technique some companies employ to market, sell and distribute their

products (or services). They do so through independent sales people, often referred to as (independent)

consultants or representatives. “Independent” means they are neither employed nor subcontracted. The

sales force is compensated not only for sales they personally generate, but also for the sales of others they

recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation.

Lot of companies use this hierarchical setup for marketing like Mary Kay, Oriflame, Amway, Shaklee etc.

E.g. Amway features over 450 exclusive products and services, and an extremely advanced global

ordering and distribution network. Amway‟s compensation plan is a traditional stair-step-breakaway which

is characterized by distributors who must have both personal and group sales volumes. Once the

established personal and/or group goals are achieved, the distributor breaks away from their upline.

Crowdsourcing | Using collective intelligence and information gathered from the public to complete

business-related tasks. Companies are often attracted to it because it expands their talent pool and is

often free.

E.g. The Oxford English Dictionary made an open call for volunteers to index words in the English language

and provide example quotations for their usage. They got 6 million entries for the project.

Bait-and-switch advertising | It is a form of deceptive advertising where the customers are „baited‟ or lured

by advertising a low-priced product (with the advertiser having no intention of selling it), and when

customers arrive, „switching‟ them to a costlier product by saying that the advertised product is

unavailable or is of inferior quality

Psychological pricing | A pricing strategy designed to have a certain psychological impact, such as when

a product is priced at $9.95 or $9.99 rather than $10.00. It has been proved that people view the „odd‟

price of „.99‟ more favourably than the rounded value as they pay more attention to the left digits. Banks

providing interest rates of 7.95% rather than 8% is another example.

Referral premium | A premium offered to customers for helping to sell a product or service to a friend or

acquaintance. It is a structured process used by companies to maximise the potential use of word-of-

mouth marketing by encouraging customers to spread the word about the company‟s offerings.

E.g. In 2009, Dropbox implemented a referral program, whereby if a person successfully registered on their

website through someone‟s referral, both he and the one who sent the referral would get extra storage

space for free.

Freebie marketing | Here, one product is sold at a low price or given away free to increase the sales of a

complementary item and thus derive a net profit. Also known as the “razor and blades business model”

due to its massive use by Gillette when it gave away free razor handles but sold razor blades at a higher

margin to gain a long-term net profit. Also used by printer companies selling low-priced printers but costly

ink cartridges.

Harshit Didwania & Sidharth Nanda

MBA (IB) 2011-13

Indian Institute of Foreign Trade, Kolkata

40

Company: TVS

Sector: Automobiles

New Product: TVS Wego

With the battle for the third spot fought hard between

TVS Motors and HMSI, both the companies have

pushed the „Launch‟ button. After aggressive

launches from Honda, TVS has ensured that they are

not left behind. With the clutchless wonder Jive, TVS

has launched the 110cc unisex scooter Wego in Pune

in a bid to make sure that the product reaches all

major potential parts of the country.

HMSI leads the scooter market with their omnipresent

Activa followed by other similar models. Wego is a

direct attempt at the largest selling Activa in a bid to

regain the lost ground.

Wego is powered by a 109.7cc air cooled 4 stroke

engine which is capable of producing 8PS at 7500 rpm and an equal amount of torque which peaks at

5500 rpm. These figures seem comparable to the competition, a lot will demystify once you thoroughly test

ride this machine.

That seems a lot of innovation and a very worthy attempt at the competition. TVS has kept the pricing of

the scooter very competitive at 42,361 ex showroom Pune which is on the similar lines of Activa. TVS plans to

sell 20,000 units for this scooter per month once the scooter has been made available all around the

country.

_____________________________________________________________________________________________

Company: Johnson & Johnson Ltd.

Sector: Pharmaceutical and Healthcare

New Product: Nicorette

Leading pharmaceutical company Johnson &

Johnson Ltd. launched its nicotine gum brand

Nicorette in India. The sugar-free gum helps reduce

nicotine craving.

Nicorette is available in packs of 4mg (10 gums) for

heavy smokers through a doctor's prescription. Also

available is an over-the-counter product of 2mg (4

& 10 gums)for light smokers.

A nicotine replacement therapy (NRT) product, Nicorette provides therapeutic and clean nicotine, slowly

and in lesser quantities as compared to a cigarette. It is just enough to satisfy the smoker's nicotine craving.

________________________________________________________________________________________________

PRODUCT LAUNCHPAD

41

International Product: Lovoka

Caramel And Chocolate Liqueur in a distinctive aluminium

bottle.

Lovoka, a new entrant to the premium liqueur category in

South Africa has shown that innovation in this area by South

African brands is alive and well. Lovoka, available in Caramel

and Chocolate variants was quietly launched. The product

has proven to be extremely successful with sales growing

exponentially.

The entrepreneurial team behind Lovoka noticed a gap for a

premium liqueur that would appeal to both the „shooter‟

market and the „cocktail‟ shakers. What was clear however

was that in order to ensure success, the new product had to

provide excitement and quality, not only the product itself, but

the packaging too. In order to ensure that the packaging

personified the brand and the product, a brief was put out for

a bottle that would reflect the uniqueness and innovative

nature of the new drink. A worldwide search resulted in the

now distinctive aluminium bottles being sourced from Europe.

The innovative offering, bottled in a 750ml aluminium bottle is fast becoming a South African favourite.

Lovoka Caramel and Lovoka Chocolate not only provide a fresh alternative to the „shooter‟ market, but

the product lends itself to being blended in cocktails enjoyed with coffee and is perfect poured over ice

and enjoyed slowly. Lovoka has proven its popularity with the consumers across all ages and is also seen as

the perfect dinner party gift.

Karun Bharati

MBA (IB) 2010-12

Indian Institute of Foreign Trade, Kolkata

42

“It is no longer enough to satisfy customers.

You must delight them.”

- Philip Kotler

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