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Pan IIM Marketing Digest



The
Looking
Glass
THE LOOKING
Editorial
                      GLASS                                                                                              Online Partner: Dare2Compete



                                                                                                                          In this edition
Dear Readers                                                                                                              Measuring the Effectiveness of the Humour Quotient
                                                                                                                          in Indian Advetising                        ……3
It gives us immense pleasure to bring out the first ever PAN-IIM marketing digest, with a joint effort by the
marketing clubs of IIMs A, B, C and L.                                                                        Influencer Marketing                                          ..…..6

If you take time to look around, you would observe the importance of marketing in every sphere of your life.              Implicit Positioning and Surrogate Advertising .........9
Starting from the time you get up in the morning, the brush, toothpaste you use, right up to the time you crash on
your bed at night, just think of those countless brands that shape your daily lifestyle. It‟s a continuous tussle         Fake IPL Player: Redefining Marketing            ..…..11
between those myriad brands laid across the horizon of consumer observation span. In a season where marketers             Effective Multi-tiered Promotions:
are leaving no stone unturned trying to grab consumer attention, marketing automatically assumes utmost impor-            Lessons From Santoor                             ..…..13
tance. The world is brutal. It‟s no longer about marketing your product right. It‟s basically a requisite for sur-
vival. If you don‟t do it, your competitors will. And the consumers have plenty of options. So, basically if you          4P's of Indian Theatre Marketing                 ..…...17
don‟t sell, your competitors will.
                                                                                                                          Neo-Political Marketing                          ...….21
We decided to come up with a collection of choicest articles contributed by students and industry personnel, which
would highlight the trends of contemporary marketing. And for the same reason we decided to call the digest, „The
Looking Glass‟, because we feel it will give a true reflection of marketing, and the direction it is taking in today‟s    Strategic Marketing for Educational Institutions…..25
scenario. The articles touch a wide array of topics which have assumed importance in the recent past. How has
humour been used effectively by marketers? How do you sell educational institutes? What exactly did the Fake              Welcome to Marketing, the third epoch!           ........28
IPL Player do for KKR? How do advertisers resort to surrogate advertising? What are the trends in online mar-             Sidestepping the Commoditization of
keting? These, and many more articles inside would keep you engrossed as you go through the pages, we hope.               Disruptive Innovations                           …...30

There are those who envision, and then there are those who work to make the vision a reality. We are proud to Sales Role in Fixed Income Securities Market ……32
say that we had a team which did both. We would like to thank all those who were involved taking the digest to
the completion stage. There was a tremendous amount of co-ordination and synchronization put in by the market- Valuation of TV Advertising                …….34
ing clubs of the 4 IIMs. At every stage of development we also received immense support from the faculty in the
form of guidance and encouragement. Also, a very special thanks to Mr. Prakash Bagri, Director of Marketing, Ogilvy and Mather Trivia                     …….36
Intel South Asia, for sharing his insights on the evolution and future of marketing, in the digest.
                                                                                                                          Is Recession the time to tighten Ad Budget? …….37
In future we plan to evolve by bringing in greater participation from the industry and experts and initiating wider Low Cost Customer Acquisition
distribution. Please do send us your feedback at looking.glass.mag@gmail.com.                                       Strategies for E-businesses                           …….39

Yours Truly                                                                                                               State of the Market -A Comparative Study        …….42
Mayank Jain, Prasad Gopal ,
Robin Joseph , Garima Mamgain                                                                                             Does Green Marketing Sell?                     ……..44

                                                                                                                          Men's Cosmetics                                 ……..48



 Team
              Editors                         Design                                            Pan IIM Team
       Mayank Jain (IIMC)              Yatish Misra (IIMC)             Piyush Mehta (IIMC)              Chayan Mukhopadhyay (IIMB)
      Prasad Gopal (IIMB)              Prativa Lama (IIMB)            Brijesh Unithan (IIMC)                Gautam Attravan (IIMB)
      Robin Joseph (IIMA)             Rajkul Fulzele (IIMA)            Mafla Mudgal (IIMC)                  Shreshth Sharma (IIMB)
    Garima Mamgain (IIML) Rishi Varshney (IIML)                          Nikhil Joshi (IIMC)               Meenakshi Prasad (IIML)
       Amit Sharma (IIML)                                              Pratik Prakash (IIMC)                  Saikat Mondal (IIML)
                                                                    Sanglap Bannerjee (IIMC)                    Ganesh PR (IIML)
                                                                     Abhishek Mohan (IIMB)               Manoj Kumar Kamble (IIML)
P AGE   3      Measuring the Effectiveness of the Humour
                                Quotient in Indian Advertising
                             In this article, we explore the hu-   Humour can come in many forms
                             mour quotient in Indian advertis-     and the choice of the appropriate
                             ing through the lens of certain       type is highly dependent on the
                             television ad campaigns that have     target audience, the cultural bias,
                             tickled the consumer funny bone       the choice of advertising medium
                             in order to evaluate the effective-   and the product itself. Some of
                             ness of such campaigns. We di-        the more popularly used forms
                             verge from the traditionalist body    are:
                             of literature that brackets hu-        Personification: This is
                             mour in advertising as risky and      where inanimate objects assume
                             at best, as effective as other ads.   human characteristics and the
                             Our contention is that an ad          inherent humour in observing
                             campaign based on humour              such behaviour is used to high-
                             stands out from the crowd and         light some quality or the desir-
                             captures the consumer mind-           ability of the brand. One such
                             share.                                example is Pepsi‟s „Oye Bubbly‟
                                                                   campaign in which various ob-
Our contention is that       INTRODUCTION                          jects such as the car stereo and
an ad campaign based                                               the garage are shown coveting the
                             When using humour to advertise        Pepsi bottle.
on humour stands out
                             a product, the main challenge for
 from the crowd and                                                 Exaggeration: Here certain
                             marketers is to link the advertise-
captures the consumer                                              attributes of the product are
                             ment to the underlying brand so
                                                                   magnified out of proportion like
     mindshare.              as to translate consumer enjoy-
                                                                   the Fevikwik ads where the fish-
                             ment to consumer purchase. This
                                                                   erman uses Fevikwik on a stick
                             linkage is questioned by numer-
                                                                   to catch fish, trumping the so-
                             ous researchers with the distrac-
                                                                   phisticated fishing gear of the
                             tion of the consumer from the
                                                                   person next to him.
                             brand quoted as the chief flaw of
                             such a strategy. We diverge from         Slapstick: This particular
                             this view – our contention is that
                                                                   brand of humour deals with the
                             the industry context and basis of
                                                                   ludicrous/exaggerated and pre-
                             competition is also critical to the
                             nature of advertisements used.        sents situations where the hu-
                             Our frame of analysis would be        morous aspect of the ad, far from
                             campaigns that are recognized for     being subtle, strikes the viewer in
                             their innovative use of humour        the face, the Chlormint ads being
                             including Fevicol and Fewikwik,       a prime example of this.
                             Happydent White, Vodafone Zoo-
                             zoos, Idea Cellular, Frooti, Tata
                                                                   Other forms include sarcasm,
Indian advertisements,       Sky, Sprite.
                                                                   comparison, pun, understate-
   in the past, have
                                                                   ment and irony. However, there is
 mostly derived their        TYPES OF HUMOUR                       a strong cultural context for such
 humour from the in-         Back in the 1960‟s, a golden rule     advertisements.     Individualistic
terplay between multi-       in advertising, propagated by the     cultures like the US and UK typi-
    ple characters.          founder of Prentice-Hall, was to      cally feature advertisements hav-
                             never mix humour and advertis-
                                                                   ing one or two dominant charac-
                             ing. Today, with the proliferation
                             of product offerings, humour is       ters while in more collectivistic
                             increasingly being looked upon        cultures like Thailand, ads re-
                             not as a distraction that trivial-    volve around groups. Similarly,
                             izes the product, but as an effec-    the degree of uncertainty avoid-
                             tive means of distinguishing the      ance and the amount of mascu-
                             product from the crowd and            line dominance in the culture of a
                             drawing the attention of con-
                                                                   country are key factors in influ-
                             sumer.

         T HE   LOOK ING      GLASS
P AGE   4


influencing the type of humour that can be         spectrum – be it the group oriented Fevicol
successfully used in advertisements, with          truck ad showing people stuffed into a truck,
countries high on these two parameters tend-       or the more individual oriented Fevikwik fish-
ing to prefer slapstick or direct humour to        erman ad, from the slapstick Akai TV ads of
subtle nuances and double entendres.               old to the more subtle Camlin Marker ads, to
                                                   the extent that even potentially controversial
Analyzing the Indian advertising scenario          ads like the Axe series have found acceptance
keeping this cultural context in mind, certain     in India, which is viewed to be conservative.
key trends can be identified. Given the tradi-
tional family oriented culture of India, Indian    Case Studies: We examine the following ad-
advertisements, in the past, have mostly de-       vertising campaigns with a view towards illus-
rived their humour from the interplay between      trating the different types of humour that
multiple characters. Also, in the past, humour     works in the Indian context and also to meas-
has tended to be largely slapstick, based on       ure the effectiveness of these campaigns
filmy spoofs and ridiculous situations. This is    along multiple dimensions: Amaron, Frooti,
part, can be attributed to the diversity of cul-   Axe and Max New York Life Insurance. Our
tures and languages found in India. Humor-         choice is driven by the different types of hu-
ous ads, therefore, must tread the thin line       mour used in each of these campaigns.
between keeping the cultural idioms of their
target audience in mind and taking care not to     Amaron (Amara Raja) batteries: The iconic
offend the cultural sensibilities of any group.    claymation advertisements with the catchy
Slapstick offers an easy way out with situ-        slogan of „Lasts Long Really Long...Ting Tong‟
ational humour having a broader reach while        captured the imagination of the public and
also ensuring that the punch line is not lost      acted as clutter busters in 2002. The „Hare
on the audience.                                   and Tortoise‟ ad and the „Kumbhakarna ad‟
                                                   were aired on Doordarshan and other satellite
                                                   channels and brought in tremendous brand
EVOLUTION OF HUMOUR IN INDIAN ADS
                                                   awareness for Amaron batteries – a new en-
                                                   trant into the automotives battery space in
Over the years, there has been a gradual evo-      2000.
lution in the use of humour in Indian adver-
tisements. The most obvious change has been        Interestingly however, the expected spurt in
the increasing use of humour with advertising      sales did not materialize. The product was a
agencies increasingly trying to grab the atten-    low involvement one with incumbent advertis-
tion of consumers through their funny bone.        ing focussing on the toughness and macho
                                                   image of the car battery. The dominant player
In 1993, only 28% of commercials were hu-
                                                   at that time, Exide, was well entrenched and
mour-based. By 2001, at least 46% tried to         Amaron did not manage to make a dent in
incorporate some form of humour. And while         their sales. The ad agency – O&M went back
in most countries, funny ads have largely          to the same claymation studio in 2004 to
been associated with low-involvement prod-         come up with a follow up, the „Pandu Mangal‟
ucts, in India, even high-involvement products     ad. The uniqueness of this ad was the univer-
like televisions and insurance have tried their    sal nature of the humour – the bumbling cop
                                                   in pursuit of a wily thief was instantly recog-
hands at humour.
                                                   nized and appreciated across all segments of
A more subtle change that has been taking          people. We also theorize that the humour was
place is in the type of humour employed.           well received as it relied on simple age-old
From pure slapstick, ads are moving towards        themes and had powerful visual imagery. This
more intelligent comedy, with a more individu-     ad consolidated Amaron as a powerful brand
alistic bent, be it the Vodafone Zoozoos, which    and was a platform for their explosive growth
cleverly depicted a variety situations, each       post-2006. In 2006 Amaron reverted to a
with some link to a feature offered by Voda-       stereotypical performance based campaign
fone, or the Fasttrack „Move on‟ commercials,      using racing stars like Karun Chandok and
which perfectly capture the changing nature        Narain Karthikeyan. Our take is that the hu-
of Indian society today. India today is at a       mour based advertising helped establish the
crossroads, between its traditional past and a     brand awareness but did not add to the top-
more modern future, which perhaps explains         line due to the low involvement of the car
the success of ads across the entire cultural      owners in the buying decision and the lack of
                                                   product differentiation as the „Lasts Long‟
                                                   promise held true de-facto in the business.

 T HE   LOOK ING      GLASS
P AGE   5


Frooti: The Digen Verma ad blitz that lasted       Axe is by far the naughtiest brand in India
for 15 days in February 2001 catapulted the        and is targeted at the male aged 16-25. The
brand into public imagination and generated a      ads highlight various situations where the
tremendous buzz across the country. The cam-       guy, usually an ordinary next door
paign was centred on a faceless college going      neighbour kind of chap rather than a
guy called Digen Verma worshipped by his           hunk, gets pursued by different women.
friends, girls and even peons – in general eve-    Seduction is the dominant motif here, with
ryone who knew him except for the stodgy old       the women making the first move – a bold
college professor. The teaser campaign com-        idea for Indian audiences. Yet, it has cap-
bined with the new caption for Frooti – „Just      tured the pulse of its target audience per-
Like That‟ was aimed at repositioning Frooti       fectly.
from a kids drink to one for the youth. Hence,
a rebellious theme was adopted in the cam-         Max New York Life: When Max New York
paign.                                             came out with their advertisement featur-
                                                   ing an overzealous dad with his young child
The last series of ads in this campaign show       as he exhorts the child to repeat words of
Digen ordering Frooti (of course Digen himself     increasing complexity, consumers sat up
is not shown on screen) – this causes pande-       and took notice. The advertisement poked
monium across the country and everyone             fun at Indians who have a propensity to
switches to Frooti immediately! This campaign      push their children into various activities
was unique in the effective use of suspense        at a young age. Interestingly, the humour
(watch this space approach) and humour in          in the ad was well received – wry humour
engaging consumer attention through various        had worked on Indian screens after a long
innovative forms of media (messages telling        while! The ad demonstrated two things –
Digen to remove his car from the parking lot       one that Indians were willing to laugh at
were flashed in theatres, bus stops had posters    themselves and two, high involvement
asking if Digen would be on the next bus and       products could be advertised using hu-
so forth).                                         mour.
A look at the sales figures show a marginal in-    The sales of new policies shot up from the
crease in the year the campaign was aired fol-     slowdown in October – further the weighted
lowed by steady increase in sales – the market     new received premiums too shot up. The ad
share decline was halted by this campaign          had worked its magic. Max New York fol-
though. Sceptics however claimed that the Di-      lowed it up with another humorous ad in
gen Verma persona had become more famous           Apr-2009, this time poking fun at the re-
and had marginalized the brand. Later, Frooti      tired Indian male.
switched to their old theme of „Fresh and
Juicy‟ which did worse than the Digen Verma        CONCLUSION
campaign – hence in comparison the use of a
unique style of humour proved to be more ef-
                                                   Thus, the use of humour, in products
fective for Frooti.
                                                   where consumer preferences play a vital
Axe: Our inclusion of Axe is a little controver-   role in selection, not only helps bring the
sial as its ads have straddled a thin line be-     brand into the consumer‟s consideration
tween sexism and naughtiness in terms of the       set through increased brand awareness
humour. We study it due to the unique nature       and recall, but also appears to translate
of the advertising – the same campaigns are        directly to an increase in sales.
aired worldwide and there has been no attempt
to tone down the humour or modify it in any
                                                   Kaushik Sriram is a 2nd year PGP student at IIM Banga-
way for India.
                                                   lore. He holds a Bachelors degree in Electronics and Communi-
This dispels the notion that Indians are con-      cation Engineering from National Institute of Technology (NIT)
servative in their humour – of course the mar-     Trichy and can be reached at kaushiksr08@iimb.ernet.in.
keting for Axe was backed up by a great prod-
uct too. The Axe effect in terms of sales and      Rohini Ramachandran is a 2nd year PGP student at IIM
market share has been spectacular to say the       Bangalore. She holds a Bachelors degree in Electronics and Com-
least. HUL (the parent company)replaced their      munication Engineering from National Institute of Technology
old deodorant brand Denim with Axe due to its
                                                   (NIT) Trichy and can be reached at rohinira08@iimb.ernet.in.
spectacular success.


  T HE   LOOK ING      GLASS
P AGE     6         Influencer Marketing
                                Welcome to the age of influencer        marketing     objective. WOMMA
                                marketing. You might have wit-          (Word of mouth marketing associa-
                                nessed and experienced it in the        tion) provides a handy classifica-
                                past – it‟s just that the term has      tion of influencers based on how
                                become more visible. Youtube,           they derive their power of influ-
                                blogs, twitter – the tools can be       ence.
                                many, the message is the same -
                                                                        Once the target influencer has
                                “you are being influenced.”
                                                                        been identified, the next step is to
                                                                        market the product to the influen-
                                                                        cer, to help increase the awareness
                                Compared to traditional marketing
                                                                        among the influencer community.
                                practices, influencer marketing fo-
                                                                        They then become well equipped to
                                cuses on key types of individuals. It
                                                                        use their influence in favour of the
                                aims to take advantage of the influ-
                                ence these individuals have over        firm.
                                the target segment, with these in-
                                fluencers becoming the centre of all
                                                                        The third and final set of activities
                                marketing activities.
                                                                        involves the use of these influen-
  Imagine your next visit to
                                                                        cers to advocate to the target seg-
    your optician. After the
                                                                        ment. Influencers can play a direct
   regular eye check-up, he     According to Duncan and Nick,
                                                                        or indirect role in this process.
    advises you to switch to    these influencers may be potential
  contact lenses, informing                                             What we see in case of contact
                                buyers themselves, or they may be
  you of the pros and cons.                                             lenses is an indirect approach
                                third parties. These third parties
   You wonder what this is                                              where the influencer (optician) is
                                exist either in the supply chain
leading to - is your optician                                           raising awareness about the cate-
                                (retailers, manufacturers, etc.) or
working as an agent to some                                             gory and not the brand. To comple-
                                may be so-called value-added influ-
contact lens manufacturer?                                              ment the strategy, the manufac-
                                encers (such as journalists, aca-
    Well, the answer to this                                            turer might put some point of sale
                                demics, industry analysts, profes-
question can be both yes or                                             merchandising to promote its prod-
                                sional advisers, and so on) - Fig 1.
no. He is just exercising his                                           uct. The third and final set of ac-
 influence on your decision                                             tivities involves the use of these
making. The motivation for                                              influencers to advocate to the tar-
  such an action could have     Using Influencer Marketing
                                                                        get segment. Influencers can play a
come from a manufacturer,       The first and most important activ-     direct or indirect role in this proc-
  in the form of incentives,    ity in influencer marketing is iden-    ess. What we see in case of contact
such as higher margins. On      tification of influencers and evalu-    lenses is an indirect approach
   the other hand, he might     ating their potential to serve the
 just be using his judgment
 and trying to help you out.




                                              Figure 1: Type of Influencers (source: WOMMA)

      T HE     LOOK ING         GLASS
P AGE    7


where the influencer (optician) is raising        Category/Subject Matter Expert group).
awareness about the category and not the          These doctors commanded a great amount
brand. To complement the strategy, the            of influence on their patients and most of
manufacturer might put some point of sale         the times their prescriptions acted as a
merchandising to promote its product.             command for the patients. Marico identi-
                                                  fied these doctors and dieticians as its
                                                  influencers.
Industry Practices
One of the most common applications of
                                                  Marketing to these influencers is done
influencer marketing is in medicines and
                                                  through various activities. Here we list
pharmaceutical products. In many cases,
                                                  some of them:
the active ingredient is common across
companies, and the medicines are substi-
tutable. Since the law prohibits any adver-
tisements of prescription drugs, compa-
nies rely on prescriptions from doctors to
drive sales. Hence, they send their repre-
sentatives to disseminate information to
doctors and give them free samples (you
might have seen „Physician‟s sample, not
for sale‟ printed on mini packs in your
doctor‟s clinic). Sometimes, the represen-
tatives even check up with local chemists
whether the medicines being promoted are
selling, before they make a visit.

                                                    Figure 2: Saffola's use of influencer
Even in categories where advertising of the                      marketing
product is permitted, like oral care, com-
panies don‟t miss out on opportunities to
                                                  1. Product detailing and sampling to the
promote their products to dentists. This is
                                                     doctors. Marico promoters visit these
because an advertisement can rarely have
                                                     doctors and brief them about the
the credibility, and hence the influence on
                                                     product. They use product detailers
the purchase decision, as compared to a
                                                     and other research documents to
suggestion from the consumer‟s dentist.
                                                     backup their claim. Sampling helps in
Another avenue that companies use to
                                                     generating some trials if the doctors
market themselves to influencers like den-
                                                     find the product claims appropriate.
tists is sponsoring lectures on recent
                                                     Essentially, it‟s the same route that
trends in oral care. Use of various dental
                                                     pharmaceutical companies take for
associations to certify one brand of tooth-
                                                     their product.
paste or toothbrush is another example of
influencer marketing. Colgate has done            2. Involvement with various medical as-
well in this regard in India.                        sociations and other such platforms.
                                                     The visibility on such forums provides
                                                     reach to a large section of influencer
On a related note, Marico Ltd. has suc-              community.
cessfully    used influencer marketing
                                                  3. Involving various key influencers to
through cardiologists to promote its prod-
                                                     help improve the product offering and
ucts, especially Saffola Oil. Saffola is a saf-
                                                     future product development.
flower based refined edible oil that prom-
ises to help control cholesterol for cardiac
patients. When Marico launched this
product in market, the biggest challenge it
faced was that most of the customers were
unaware about cholesterol. Cardiac pa-
tients relied completely on their cardiolo-
gists and family doctors for information (in
WOMMA classification, these belong to




T HE   LOOK ING       GLASS
P AGE      8


Once these influencers become aware of the       Top 10 Most Brilliant Marketing Screw Ups
product and accept the effectiveness of the
product, they do not hesitate in giving infor-
mation about the same to their patients.  Coors put its slogan, "Turn it loose," into Spanish, where it
Saffola today is part of many a diet charts
                                               was read as "Suffer from diarrhoea."
and diet-guides because of such activities. It
is most probably the only edible oil that is
recommended by doctors during consulta-  Scandinavian vacuum manufacturer Electrolux used the
tion.                                          following in an American campaign: "Nothing sucks like an
                                               Electrolux."

Another, most common use of influencer  Clairol introduced the "Mist Stick", a curling iron, into Ger-
marketing in modern times is engaging tech-     man only to find out that "mist" is slang for manure. Not
nology experts during launch of new prod-       too many people had use for the "manure stick."
ucts. Most of the cell-phone manufacturers
as well manufacturers of new age software  When Gerber started selling baby food in Africa, they used
provide their product to these experts before   the same packaging as in the U.S., with the beautiful Cau-
the product is formally launched. The ex-       casian baby on the label. Later they learned that in Africa,
perts are encouraged to write about the         companies routinely put pictures on the label of what's in-
product. The influence these experts com-       side, since most people can't read.
mand over the tech savvy target segment
helps in convincing early-buyers of the prod-  Colgate introduced a toothpaste in France called Cue, the
uct and thus generating the initial thrust      name of a notorious porno magazine.
required for the success of the product.
                                                                 An American T-shirt maker in Miami printed shirts for the
                                                                  Spanish market which promoted the Pope's visit. Instead of
Influencer marketing gives a marketer an
                                                                  "I saw the Pope" (el Papa), the shirts read "I saw the po-
opportunity to utilize resources beyond what
                                                                  tato" (la papa).
is owned by the organization. This necessi-
tates establishing professional and ethical
norms on the marketer‟s part. The power of  Pepsi's "Come alive with the Pepsi Generation" translated
influence also comes with great responsibil-                      into "Pepsi brings your ancestors back from the grave", in
ity of using this influence in the right man-                     Chinese.
ner. It is not uncommon to hear of compa-
nies providing excessive incentives to influ-  Frank Perdue's chicken slogan, "it takes a strong man to
encers, to ensure that they promote only                          make a tender chicken" was translated into Spanish as "it
their products. The onus is on the marketer                       takes an aroused man to make a chicken affectionate."
to define the ethical and professional
boundaries and stay within them.                                 The Coca-Cola name in China was first read as "Ke-kou-ke-
                                                                  la", meaning "Bite the wax tadpole" or "female horse
                                                                  stuffed with wax", depending on the dialect. Coke then re-
So, in case you are looking to visit your opti-                   searched 40,000 characters to find a phonetic equivalent
cian anytime soon, at least now you know                          "ko-kou-ko-le", translating into "happiness in the mouth."
that he might be influenced by Bausch and
Lomb to „influence‟ you into buying contact  When Parker Pen marketed a ball-point pen in Mexico, its
lenses.
                                                                  ads were supposed to have read, "It won't leak in your
                                                                  pocket and embarrass you". Instead, the company thought
Ammar Tambawal is a 2nd year PGP student at IIM Ah-               that the word "embarazar" (to impregnate) meant to em-
medabad. He holds a Bachelors degree in Electronics Engineering   barrass, so the ad read: "It won't leak in your pocket and
fr om VESI T , B ombay and can be r each ed                       make you pregnant."
at 8ammary@iimahd.ernet.in


Pritesh Jain is a 2nd year PGP student at IIM Ahmedabad.
He holds a Bachelors degree in Electronics and Communication
Engineering from RV College of Engineering, Bangalore and can
be reached at 8priteshj@iimahd.ernet.in




     T HE     LOOK ING          GLASS
P AGE         9


                                       Implicit positioning and surrogate advertising
                                    Advertising is widely accepted to be     vertising avenues which often
                                    the most potent tool in the hand of a    stretched the concept of brand ex-
                                    marketer. Whether it is to launch a      tension to previously unheard-of lev-
                                    new product, entrench an existing        els. These include the mundane such
                                    one, educate on the new salient fea-     as sponsoring events (without ex-
                                    tures or create a new market, most       plicit advertising) and Internet adver-
                                    consumer products manufacturers          tising; the unconventional such as
                                    orient a considerable amount of          ITC‟s diversification into clothing and
                                    time, energy and money to reaching       apparel as well as the far-fetched
                                    out to existing and potential con-       such as the Red and White Bravery
                                    sumers though various media such         Awards and other lifetime achieve-
                                    as television, radio etc. as also new    ment awards instituted mainly to
                                    age media like the Internet and Out      perpetuate brand recall among the
                                    of Home (OOH) media.                     target audience. One interesting
                                                                             trend which was observed in the mid
                                    Origins                                  2000s was the “socially responsible
                                    In this context, one can imagine the     advertising” taken up by many liquor
                                    predicament of a producer who is         companies. Several advertisements
                                    mandated to legally produce and          exhorting viewers to be responsible
                                    stock and then has his hands tied by     citizens and refrain from driving after
The ban on advertising of           being denied the right to market the     drinking were seen by media ana-
       tobacco and liquor           produce. This is a ditch that many       lysts as a form of surrogacy.
        introduced by the
                                    liquor and cigarette companies have
    Government of India                                                      Media analysts have also often won-
                                    found themselves in after the Gov-
during the early 2000s has                                                   dered aloud that the ambitious for-
                                    ernment of India passed a blanket
  spawned a generation of                                                    ays made by Dr Vijay Mallya in avia-
      surrogate marketing           ban on all advertising of „intoxicants
                                                                             tion, Formula 1 and related
 initiatives as corporations        and harmful substances‟ in mid
                                                                             „glamorous‟ industries have as much
      leant to sell without         2002. Most of the large players
                                                                             to do with his desire to perpetuate
    communicating to the            adapted quickly to introducing what
                                                                             his strong brand portfolio as the
   consumer. Many in the            are termed as complimentary prod-
                                                                             prospect of de-risking his business
industry have since started         ucts which fell outside the ambit of
                                                                             by diversifying.
     to diversify into areas        the Government‟s regulation. The
   where they can leverage          significant ones include 8PM Whisky
                                                                             For the best part of this decade, the
  their brands’ aspirational        (apple juice), Aristocrat Whisky
                                                                             tobacco and liquor manufacturing
    value; such as aviation,        (apple juice), Bagpiper (club soda),
                                                                             lobby has been trying to persuade
  clothing and apparel and          Hayward‟s 5000 Beer (kit of darts
                                                                             the government to relax the restric-
      sports. However the           which was the centrepiece of the ad-
   surrogacy in advertising                                                  tions on advertising what are per-
                                    vertising campaign) and Gilbey's
  continues in the absence                                                   ceived as surrogate products. Fi-
                                    Green Label Whisky (mineral water);
   of a strong code by the                                                   nally, as late as March 2009, the
                                    and in this process was born a new
ASCI and the government                                                      Government of India decided to the
                                    trend of surrogacy in advertising
    flip flops on the issue.                                                 hand a long rope under the stipula-
                                    which is commonly defined as
The need of the hour is to                                                   tion that the surrogates have no
                                    „advertising one product with the
come clean on the subject                                                    product linkages to intoxicants.
                                    view of selling another‟
         and develop an                                                      However on June 10th this year, the
     unambiguous plan of            Trends in surrogate advertising          government tabled a bill to amend
              action                                                         the Cable Television Network Act of
                                    After the ban imposed on the 12 ad-      1994, which is likely to tighten the
                                    vertisements identified as surrogates    screws on surrogate advertising even
                                    by the Government of India, and the      further.
                                    show-cause notices issued to Star
                                    TV, Zee TV and Aaj Tak in 2002 un-       Advertising Ethics
                                    der the provisions of the Cable Tele-
                                    vision Regulation Act of 2002, the
                                    whirlwind of surrogate ads hitting       The Advertising Standards Council of
                                    the telly calmed down to a large ex-     India (ASCI) issued clarifications at
                                    tent. Advertisers started diversifying   various points of time that in accor-
                                    and shifted their focus to other ad-     dance with the code laid for guiding

     T HE     LOOK ING             GLASS
P AGE   10



                                                     If it has been established conclusively that ciga-
                                                     rette smoking kills, why is it that it is available
                                                     to anyone, irrespective of his or her age, at
                                                     every street corner?”

                                                     "It's difficult to digest that an industry which is
ethical behaviour in advertising, the mere use       allowed to sell its products, is banned from ad-
of a brand name or company name which may            vertising the same products, despite the fact
be the same or related to a product put under        that the commercials carry health warning, ad-
advertising restriction may not be construed as      vising the customers to use the product in tem-
reason enough to find the advertisement objec-       perance.", says Prof. Atul Tandan, Director,
tionable. An exception may however be made           Mudra Institute of Communications in an arti-
in case the product which is advertised is not       cle released in July 2002.
freely available or is produced and distributed
in minuscule quantities, which may not be suf-       While such questions make intuitive sense, the
ficient to warrant advertising costs. Also adver-    practicality of banning production of tobacco
tisements must not contain direct or indirect        and liquor is unpalatable for the simple reason
cues for the product under advertising restric-      that these are very heavy contributors to In-
tion.                                                dia‟s tax kitty and the revenue loss due to a
                                                     ban on production will most likely be catastro-
However many advertisers must still grapple          phic. Also the increasing pressure exerted by
with ethical dilemmas as the existing code           the WHO as well as NGOs and health activists
leaves a lot of scope for interpretation.            have forced the government to be seen doing
                                                     something. As a result of this duality of pur-
Voluntary abstinence                                 pose, the tug-of-war continues without resolu-
                                                     tion.
A notable exception to the clamoring by the          The need of the hour
tobacco and liquor lobby and circumventing of
stipulations to maintain sales is the conduct of
ITC Ltd after the ban announced by the gov-          The following measure will go a long way in
ernment. In 2001, ITC voluntarily opted out of       easing the deadlock seen here:
the sponsorship deal that it had signed with
the BCCI to sponsor the Indian cricket team          The ASCI should have an unambiguous guide-
and has since been de-emphasizing its ciga-          line for differentiating acceptable and unac-
rette brands in favor of other lines of business     ceptable forms of advertising with respect to
which are considerably more sustainable. It          surrogate products. Also the ASCI should be
has also taken up large scale Corporate Social       empowered to implement the guidelines and
Initiatives in rural India, the crown jewel being    issue penalties for non-conformance.
the e-Choupal initiative, to enable the agricul-     The government needs to take a stand on the
tural community to adopt a direct selling ap-        issue. It must look beyond having the cake
proach.                                              (the advertising ban) and eating (tax revenues)
                                                     it. Advertising companies must take pains to
Two sides of the same coin: Ambiguity of             understand the nature of the products and
law                                                  market that they are dealing with and must
                                                     refrain from designing and propagating surro-
                                                     gate brands.
Many in the industry question the practice of
banning advertisements which effectively             Nikhil Joshi is a 1st year PGDM student at IIM Calcutta. He
erodes the ability to sell while at the same time    holds a Bachelor‟s degree in Electronics and Telecommunication Engi-
allowing production to continue.                     neering from University of Mumbai and has worked as a Software
                                                     Testing Consultant with L&T Infotech. He can be reached at
In an article published by The Hindu in March        joshin2011@email.iimcal.as.in
2008 Ramesh Narayan, a communication con-
sultant writes,
“The advertiser‟s perspective is fairly straight-
forward. If it is legal to manufacture, distribute
and sell a product, why should it be illegal to
promote the sale of that product? I don‟t think
anyone can answer that question convincingly.


T HE   LOOK ING      GLASS
P AGE      11

                              Fake IPL Player: Redefining Marketing
                              “Lord Almighty along with the Ca-
                              lypso King decided to take the attack
                                                                       Further, according to a report pub-
                              on to the Bubblies. The Phoren babas
                                                                       lished by Business Standard, the
                              were happy when they saw Appam
                                                                       peak ratings of KKR matches on SET
                              being slaughtered. Prince Charles of
                                                                       MAX channel were among the high-
                              Patiala was all tensed up but
                                                                       est; at around 6 per cent of the total
                              Bhookha Nan and Kaan Moolu were
                                                                       cable viewers above the age of 15
                              having a very good time with Sandy
                                                                       years.
                              Baddy Babe.”

                                                                       A source representing one of the
                              This may sound gibberish to many.
                                                                       sponsors summed it as “From an
                              But those who have ever come
                                                                       advertiser‟s point of view, we have
                              across the Fake IPL Player‟s blog at
                                                                       got a lot of mileage and media space
                              any point of time would be laughing
                                                                       for the right and wrong reasons. The
                              their hearts out. This blog has be-
                                                                       fact that it has managed to attract
                              came a sensation in the cricketing
                                                                       television viewership and on-ground
  Fake IPL Player, a blog     world. But at the same time it also
released by an anonymous                                               support from spectators speaks a lot
                              made several great traditional mar-
blogger during the Indian                                              about the brand KKR”.
                              keters sit up and take notice.
 Premier League (Season-
 2), created a lot of furor
  in the cricketing world.                                             This may be a coincidence. But
                              What is this hype all about?
  But at the same time it                                              surely Fake IPL Player has popular-
 stood out as an excellent    Just a couple of days before the start   ized the two relatively new strategies
 marketing campaign for       of the IPL 2nd season in South Af-       of marketing – Anti-Marketing and
    the Kolkata Knight        rica, a blog was launched by an          Buzz Marketing.
  Riders Team. Using the      anonymous person, who claimed to
  unorthodox marketing        be a member of the Kolkata Knight
    techniques of Anti-                                                Anti Marketing
                              Riders Squad. Throughout the IPL
    marketing and Buzz
                              he kept sensationalizing the intra-
 Marketing, it could help                                              After studying marketing campaigns
                              team conflicts. Humor and Suspense
  KKR build up a strong                                                and trends for several years, Indrajit
   brand value as well as     - his two weapons- made the follow-
                                                                       “Jay” Sinha, an associate marketing
generate enough TRPs on       ers want more of it.
                                                                       professor at the Fox School of Busi-
   television. This article                                            ness and Austrian marketing profes-
analyses the different new                                             sor Thomas Foscht, discovered that
-age marketing techniques     The result
                                                                       effective campaigns go against what
with reference to the case                                             traditional marketing preaches. They
   of the aforementioned      Although Kolkata Knight Riders
                              (KKR) kept up their dismal perform-      have together published a book
            blog.                                                      “Reverse Psychology Marketing: The
                              ance, they have emerged as the
                              strongest IPL brand. According to        Death of Traditional Marketing and
                              the IPL Brand Value Scoreboard           the Rise of the New Pull Game”,
                              2009 published by UK‟s Intangible        which identifies and analyzes the
                              Business in collaboration with MTI       new marketing trends.
                              Consulting, KKR tops the board with
                              an estimated brand value of $22.3        According to the book -- “Traditional
                              million. As Richard Yoxon, the Inter-    marketing campaigns are focused
                              national Director of Intangible Busi-    around customer orientation. They
                              ness puts it – “Winning games is not     offer too much choice, confusion and
                              enough to build a successful sports      sales pressure, resulting in custom-
                              brand. Teams need to engage the          ers‟ boredom, cynicism and irrita-
                              local community, attract star players    tion. Less is more with present-day
                              who inspire a wide audience and de-      marketing. Customers now crave
                              velop a strong marketing communi-        simplicity, authenticity and exclusiv-
                              cation program.”                         ity”.




       T HE    LOOK ING         GLASS
P AGE   12


“Fake IPL Player” blog did exactly the same        Interviews etc. But simulation and controlled
thing. Instead of blowing its own horn, the        conversations twist the facts to a certain ex-
author tactically cooked up stories about in-      tent thereby affecting the outcome of the data
fighting within the team. This created a sen-      analysis as done by market research agen-
sation for the cricket crazy masses which in       cies.
turn strengthened the KKR brand. As market-
ers put it “Any publicity is good publicity”.
                                                   Uncontrolled conversation would let people
There have been a few examples of successful       vent out their emotions without any con-
anti-marketing in the past. One such signifi-      straints. This would in turn give marketers
cant example is that of Steven Singer Jewel-       better insights into consumer behaviors.
lers. It has successfully executed a marketing
                                                   Fake IPL player‟s blog generated a greater
campaign – “I hate Steven Singer”. As a result
                                                   buzz for Team KKR by encouraging uncon-
it has become a landmark jeweler in the
                                                   trolled conversation. Thousands of comments
Philadelphia region.
                                                   were posted in response to each blog post.
                                                   This added flavor to the blog and generated
Buzz marketing                                     further interest in the blog as well as in the
                                                   KKR team. This in turn resulted in the soar-
Viral marketing describes any strategy that
                                                   ing TRPs of the KKR matches.
encourages individuals to pass on a market-
ing message to others, creating the potential
for exponential growth in the message's expo-
                                                   The lesson
sure and influence.
                                                   Some claimed the Fake IPL player was a real
                                                   life cricketer while others, at the same time,
Buzz marketing is a viral marketing technique      considered it a marketing gimmick of KKR,
that attempts to make each encounter with a        Shahrukh Khan et al. Though he did reveal
consumer appear to be a unique, spontane-          his identity in his own cryptic way, the Fake
ous personal exchange of information; instead      IPL Player remains anonymous as ever. What-
of a calculated marketing pitch choreo-            ever it may be, it has surely taught all estab-
graphed by a professional advertiser. Al-          lished and budding marketers a lesson. It‟s
though the concept of Buzz marketing is not        not about the big bucks spent on advertising
new, but the way Web 2.0 is used these days,       and promotion, but about innovative market-
it has opened up several avenues for the new       ing channels and creative strategies. Analyz-
age marketers. Like viruses, such strategies       ing the right media channel and the right
take advantage of rapid multiplication to ex-      creative message is far more fruitful than
plode the message to thousands, and mil-           some elaborate but outdated marketing and
lions.                                             promotion practices.


This was the case with the Fake IPL Player.                 Welcome to the new „fake‟ world!
The Fake IPL Player didn‟t spend a single
penny. But he reached thousands. Overnight
the blog became the talk of the town. He used      Praneet Gourav Mishra is a 2nd Year student at IIM
a simple and free user friendly web resource,      Lucknow specializing in Marketing and Finance. He is a
blogs, and spread through word-of-mouth            “Mechanical Engineer” from NIT Rourkela and can be reached at
communication. He realized the fact that get-      mishra.praneet@gmail.com
ting one interested user (or customer) will
eventually result in several others getting in-
terested in the product. More than 8000 fol-
lowers of the blog stand testimony to this fact.


Uncontrolled Conversation: the mantra of
new-age advertisements

Traditionally brands discouraged uncontrolled
conversation on social media and read too
much into the controlled conversations in a
simulated environment e.g. FGDs, In-depth
P AGE      13


                                   Effective Multi-tiered Promotions: Lesson from Santoor
                                     Trade promotions refer to any activ-     for promotions across different
                                     ity aimed at providing an incentive      Population groups (POP groups)
                                     to the channel members for their         and outlet types (Retailer or Whole-
                                     support in marketing and distribu-       salers). Then we will describe Multi-
                                     tion of the product. There are a         tiered promotions followed by its
                                     number of tools available to the
                                                                              application by Santoor brand. In
                                     marketer for the same such as price
                                     -off, allowances, free goods, trade      the end we will consolidate the
                                     shows, sales contests, specialty ad-     learning of the study.
                                     vertising, etc.
                                                                              Trade Preferences for         Promo-
                                     The importance of such measures
                                     stems from the fact that the retailer    tions: Primary survey
                                     is willing to sell only those products
                                     which have a demand in the market        A structured questionnaire was de-
                                     and thus allow him to earn a profit.     signed and was pre tested on a
                                     These measures incentivize the ef-       sample of 7 retailers at Hyderabad
                                     forts that a channel member puts in      city. Out of 101 outlets visited, 9
                                     for increasing the sales of a product    said they are not interested in pro-
                                     and create a „push‟ in the channel       motional offers so no further ques-
                                     which may lead to a higher sales         tions were asked about the promo-
                                     turnover. The push effect is of spe-     tions. The survey findings are sum-
Sales promotion is an essen-         cial significance in product catego-     marized below:
  tial part of any marketer’s        ries where the differentiation be-
activities. It can be classified     tween products is not very high.            Deal Proneness: It was found
   as Trade promotion and            One such category is the FMCG.               that 91.08% of the traders were
 Consumer Promotion The                                                           deal prone. Similar trend was
authors conducted a survey           Within the FMCG sector, the adver-           observed across outlet types
 about trade promotion ac-           tisement campaigns that are run              and POP groups.
 tivities in the soap industry       bring the customer to the retail
                                     store, yet at the point of sale there       Deal Preference: It was found
and found out that different
                                     are numerous options available. At           that 64.13% of traders prefer
  types of traders prefer dif-                                                    price-cut promotions while rest
                                     this juncture the retailer can have
ferent kinds of promotions.          an impact on the purchase decision.          preferred gift based promotions
 Every company must offer            Incentives offered to the retailer, by       like gift articles etc. Considering
promotional schemes which            the company or the wholesaler, mo-           outlet type, 60.66% of retail out-
    cater to the needs of all        tivate the retailer to push the brand        lets prefer price cut while
  types of retailers. One ap-        and affect the purchase decision             70.97% of wholesaler preferred
proach of integrating varied         favorably.                                   price cut promotions. Across
promotional efforts is multi-                                                     POP groups, FLP retailers were
                                     Through our study we intend to find          more inclined towards price cut
 tiered promotion. To show
                                     the relevance of multi-tiered promo-         (76.19%) as compare to lower
    the effectiveness of this
                                     tions for such categories. We chose          POP groups (OLP – 60%, 20K-
  approach, we have shown                                                         50K – 41.16%). In order words
                                     soap category (INR 6500 Cr) as it is
   the promotion efforts of          the biggest category in FMCG seg-            lower POP group retailers were
Santoor soap in a particular         ment. Within Soaps, Santoor is the           interested in gift based promo-
             quarter.                2nd largest brand in India in the            tions.
                                     popular segment, and also the larg-
                                     est brand in Andhra Pradesh with a          Time of Incentive: 56.52% of
                                     market share of 37.07% of the total          trade prefers instant gratifica-
                                     3,374 tons per month. One reason             tion while rest prefers long term
                                     for the leadership position attained         benefit. It can be concluded that
                                     is the multi-tiered promotion policy         there is a mix response in the
                                     of the company. In this article we           market. Considering the outlet
                                     will present the primary survey con-
                                     ducted to identify trade preferences
                                                                                  type, 67.21% of retailers prefer
                                                                                  instant gratification because of

     T HE      LOOK ING            GLASS
P AGE    14


      wholesaler having considerate stocking      sales for the company. If there is an appro-
      capability and pushing power tends to       priate multi tiered promotion mix, the com-
      opt more(64.52%) for long term plans        pany can effectively achieve its sales targets.
      due to extra margins involved. The
      same trends follow in various POP           To substantiate our proposal, we provide em-
      groups.                                     pirical data on the multi tiered promotion
   Type of Incentive: It was found that          used by Santoor soaps during Jan-March
      48.91% of trade prefers assured prizes      2009, in the Andhra Pradesh market
      while 51.09% of trade prefers to try
      some luck. The similar response was         The Santoor Way
      from retailers and wholesalers. Looking
      at the POP groups, the retailers from       Santoor uses multi-tiered trade promotions
      lower POP groups (20K-50K) were more        with different time duration and promotion
      interested (64.70%) in lucky draw. The      mix. We will measure the effectiveness by
      wholesalers from Metro (62%) and OLP        observing the impact of sales. The promotion
      (71.42%) were more interested in lucky      schemes run by Santoor can be classified as
      draw and bumper prizes.                     in Table 2.
Leanings from the survey –
                                                  Secondary Scheme
 Preferences of traders for different promo-
tions changes across outlet type and POP
                                                  Adding to the regular margins and “primary
groups
                                                  schemes” each sales officer has been allotted
 Customization of promotion schemes nec-         budget of Rs 15 per CFC for the “secondary
essary for effectiveness of the same – a mix of   schemes”. The Sales Officer can tailor
price based and gift based promotions to cater    schemes on the basis of it. These schemes
to the different needs of different traders       are tactical in nature which is used by Sales
                                                  officer to meet the sales target. The schemes
 Promotion schemes with different time-          are QPS (quantity purchased scheme) to give
lines are preferred by different traders due to   extra margins and offers for bulk purchase.
their inherent nature (outlet type, planning      The trade schemes used during Jan-May
horizon, etc)                                     2009 were:

Multi-Tiered Promotion                            Specific trade plan

Multi tiered promotion refers to promotional      Wipro regularly announced long duration (2-
schemes running simultaneously at the same        3 months) trade plan to motivate trade for
time and complementing each other towards         bulk purchase. We will discuss Tambola
meeting the sales targets of the company. The     scheme (Jan-Mar 2009) for this article, which
different schemes may be price based or gift      involved a lucky draw for the prizes (Spark
based, follow different timelines individually    Car, Bajaj Motorcycle, Air Conditioner etc).
and complement each other. The offering of
the different schemes is based on the discre-     The unique feature, early bird prizes to kick
tion of the Sales Manager – who may focus         start the program was valid for a period of
more on a particular kind of scheme for differ-   first 21 days. One Early bird Ticket for a
ent traders keeping in mind their preferences.    zonal lucky draw was given if the trader ob-
For example – there is a weekly scheme (price     tains 50 Tambola tickets. The prizes were
or gift based) running which motivates retail-    worth Rs 300 to Rs 6000.
ers to buy higher stocks every week. At the
same time, there is a monthly scheme wherein      Effectiveness of the Multi-tiered promotion
the retailer can win a gift on purchases of a     mix was reflected in the increased sales dur-
specified number of units or earn a special       ing the scheme period of as shown in Table
discount. Now even though initially the re-       4.
tailer may think that the monthly target is be-
yond his reach and may focus on just the
weekly scheme, by the last week of the month
the weekly target achievement would have          During the Tambola scheme, the company
brought him within sight of the monthly tar-      also ran consumer promotions summarized
get. This position may motivate him to achieve    in Table 5.
the monthly target as well, leading to higher

 T HE   LOOK ING      GLASS
P AGE   15

 Table 1: Parameters for Primary Survey




Table 2: Multi-tiered Promotion by Santoor (Source – Personal Communication)




Table 3: Tactical Weekly Scheme "Secondary Scheme" (Source – Personal Communication)




Table 4: Effect of Multi-tiered Promotional mix on Sales (Source – Personal Communication)




  T HE   LOOK ING      GLASS
erences. They also were seeing higher
   Flash Start – This phase saw the launch of
                                                               customer purchases due to the rejuve-
    the Tambola Scheme, along with the weekly
                                                               nated customer promotion campaign.
    schemes (price and gift based) and con-
    sumer promotion. The long term schemes
                                                          Thus we see that each of the schemes was
    generally fail to motivate traders during ini-
                                                          complementing the others, with the choice
    tial period. In order to kick start the plan,
                                                          of offering price or gift based incentives lying
    Wipro introduced early bird prizes to give
                                                          with the sales manager, the schemes. We
    traders dual incentive to participate in the
                                                          see that the multi-tiered approach for pro-
    plan. The short term incentive though
                                                          motional mix was followed leading to higher
    brought buzz in the market it was amply
                                                          sales and success in the market.
    supported by tactical weekly schemes suit-
    ing both the preference, gift and price pro-
                                                          Conclusion
    motion of traders. The weekly schemes in
    the first two weeks brought them close to
    the target for early bird prizes leading to  The conclusion of the study is that the
    higher purchases in the third week. At the   trader preferences for promotion schemes
    same time, higher push in the channel was    vary, between price based and gift based
    complemented by a consumer promotion.        incentives. The preference for the scheme
    So the traders were purchasing more to be    horizon also varies with the size, type and
    eligible for weekly and/or early bird scheme nature of the trader. Some traders prefer
    while the customers were also demanding      short term incentives which provide instant
    more of the soap. Thus, Multi-tiered promo-  gratification while some prefer long term
    tion mix (weekly and early bird scheme)      benefits. To be effective, a promotion mix
    helped Wipro to motivate traders to pur-     needs to consider all kinds of traders. Multi
    chase more so as to be eligible for another  tiered promotion is an approach for the
    tier of incentive i.e. Tambola scheme in its same, which can provide different types of
    first phase.                                 incentives to different traders, vary the in-
                                                 centive horizon, and integrate every simulta-
   Mid slump – During this phase, the weekly neous scheme towards the achievement of
    schemes ran as before, the customer pro- the overall sales target of the company. The
    motion also ran without change. The overall approach has been used in the market by
    Tambola Scheme was also present, without Santoor, and effective execution can lead to
    the early bird scheme. The benefit of such a better results.
    strategy was that traders who had built
    high stocks in the first phase were able to
    clear them out. The consistency of con-
    sumer promotion was a deliberate attempt
                                                 Abhishek Sood is a 2nd year PGP student at IIM Bangalore.
                                                 He holds a Bachelors degree in Commerce (Honours) from Sri
    to help trader in finishing their accumu-
                                                 Venkateswara College, University of Delhi and can be reached at
    lated stock as superior change in consumer abhishekso08@iimb.ernet.in.
    promotion would shift the consumer de-
    mand towards the freshly offered stock The Akhil Kumar Meshram is a 2nd year PGP student at IIM
    weekly benefits were for those traders who Bangalore. He holds a dual degree, Bachelors and Masters in
    were either not covered by the early bird Information Technology from Indian Institute of Information
    scheme, or were not interested in the long Technology and Management (IIITM) Gwalior and can be
    term benefits. They benefitted immensely reached at akhilkm08@iimb.ernet.in.
    with the continuing weekly offers.

   Late Push – In this phase, the weekly
    schemes continued as before, the customer
    promotion was changed so as to motivate
    trader to purchase more and at the same
    time, there was an increased focus on the
    Tambola scheme. The traders, who had
    been utilizing the weekly schemes, and
    early bird scheme were close to the targets
    for the Tambola scheme – and in their effort
    to achieve this target, they could utilize the
    weekly schemes which were mix of price
    and gift based promotion as per their pref-
P AGE    17



                            4P’s of Indian Theatre Marketing
                                                                  Dharamveer Bharati and B.M Shah
                           Theatre has been the soul of Indian    Kutiyattam in Kerala. Noted con-
                           entertainment since Vedic times.       temporary playwrights like Habib
                           The different forms of theatre acts
                                                                  Tanvir, Vijay Tendulkar, and Mohan
                           in India have given an incredible
                           and unparalleled versatility to In-    Rakesh, Girish Karnad, Mahesh
                           dian art and culture. The father of    Dattani, Badal Sircar, Dharamveer
                           Indian theatre Bharat Muni who         Bharati and B.M Shah revolution-
                           wrote Natya Shastra laid the foun-     ized the art of story telling and mod-
                           dation of structured training in       ern theater. We must acknowledge
                           field of theatre and dramatics be-     the contribution of stalwarts like
                           tween 200 BC and 200 AD. Theatre
                                                                  Prithivi Raj Kapoor, Sohrab Modi,
                           as an art form in India has its
                           roots during the Vedic period. But     Ebrahim Alkazi , Amal Allana, Om
                           in spite of such a long period of      Puri, Naseerudin Shah , ShahRukh
                           existence , theater groups are still   Khan, Manoj Bajpai , Atul Kulkarni,
                           fighting to make theater commer-       Yashpal Sharma and Sima Biswas,
                           cially viable. This paper discusses    who popularized Indian theatre and
 Theatre needs mass        some aspects of Indian theatre ,
                                                                  then moved to the film industry.
                           categorization of art , process of
  marketization to         theatrical productions , 4P‟s of
                           theatre marketing mix , the needs      THEATRE: PRODUCTIONS                  &
make it commercially       of today‟s culture consumers , the     CHALLENGES
                           difference between the high art and
       viable.             popular art , competitors to theatre   McCarthy (2001), categorized arts in
                           and challenges faced by Indian         four broad sections i.e. Performing
                           theatre groups. Based on the com-      arts, Media arts, Visual arts and
    Digital marketing      prehensive discussions with nu-        literary arts. The second figure
  strategy coupled with    merous theatre artists and theatre     shows the categorization of arts.
accessible locations for   activists, the paper lays down stra-
                                                                  Performing arts is further subdi-
        staging live       tegic outline for a theatre market-
                           ing plan in India.                     vided in to theatre, dance, music
 performances will help
                                                                  and opera. Media related arts are
    in attracting large
                                                                  subdivided in to installation art,
number of audience in a    INTRODUCTION
timely manner and thus                                            film production and the recent addi-
 make Indian theatre a                                            tion of computer/digital arts. Visual
                           Theatre is an ancient aesthetic
   commercially viable                                            arts have been categorized into
                           practice in India. Surviving play
         business.         texts and treatises suggest that       painting, sculpture and crafts. The
                           theatre existed in the Indian sub-     last section, literary art is classified
                           continent from the dawn of civiliza-   into fictions and poetry.
                           tion. According to the Natyashastra
                           of Bharata, an exhaustive treatise   Any theatre production involves a
                           on the art of performance, drama     series of rigorous steps. The second
                           was a gift from the gods to the hu-  figure shows the steps involved in
                           mans.                                making a theatrical production and
                           Theatre has travelled many centu- bringing it to the people. Theatrical
                           ries in India. The different active scripts are conventionally sourced
                           forms of theatre in India which are from historical writings or adapted
                           still mesmerizing the art lovers are or written right from scratch. Once
                           Bhavai in Gujarat , Yakshagana in the script is ready then it is sub-
                           Karnataka , Nautanki in Uttar jected to production. Support and
                           Pradesh and Bihar , Swang in inputs from musicians, choreogra-
                           Haryana , Jatra in Bengal and phers, actors, costumes. Lighting
                           Mohan Rakesh, Girish Karnad, and direction result in a presentable
                           Mahesh Dattani,Badal Sircar , form of a theatre product.



T HE   LOOK ING        GLASS
P AGE   18


The second figure shows the marketing effort      the masses.
to reach culture consumers. The figure shows
two triangles with a small and big base. The      -As there is less and limited consumption of
smaller base shows the existing marketing         available high art, therefore popularity of art is
effort and the bigger base shows the intended     limited and this results in a decrease in audi-
marketing effort.                                 ence. As a result , those who want to produce
                                                  popular art do not get sufficient funds to pro-
The various new challenges in cultural con-       duce commercially viable popular art.
sumption are: decrease in consumer time for       PROMOTION
leisure, expansion of consumer options for
entertainment, expanded exposure to world‟s       The promotional strategies used by theatre
cultural products, blurring the distinction be-   production houses are very limited. Recently
tween high and popular culture and changing       few corporate houses have started funding the
patterns in public funding. These challenges      theatre production houses e.g. Matrix cellular,
in cultural consumption have created a tough      Vodafone, Religare, and Mahindra and Mahin-
competition for the consumption of theatrical     dra. These corporate houses use extensive
products.                                         publicity and advertisements for popular art
                                                  but it has not resulted in creating an enduring
                                                  audience. The traditional form of publicity
                                                  techniques used by theatre production houses
                                                  are as follows:

                                                    Occasional advertisements in leading news
                                                     papers which occupy very small column
                                                     width and do not create any lasting im-
                                                     pression on potential audience.

                                                    Small printed pamphlets are manually dis-
                                                     tributed outside the auditoriums. This only
                                                     helps to inform the existing theatre audi-
                                                     ence. This localized and captive distribu-
                                                     tion does not create awareness to potential
                                                     audience.

                                                    Few theatre production houses have
4 P’S OF THEATRE MARKETING
                                                     started using cultural websites to promote
                                                     their new productions on cost free basis.
PRODUCT
                                                     But the irony is that due to lack of funding
                                                     and advertisements such cultural websites
High art Vs Popular art: The principal problem
                                                     are struggling.
with the consumption of theatre products is
the distinction between high art and popular
art. The prominent and “talent rich” houses of      The other means of promotion is through
theatrical productions like National school of       word of mouth. But word of mouth promo-
drama , Naya theatre and Rangshankara fail           tions by existing audiences are not able to
to distinguish between the consumption of            generate enduring audiences.
high art and popular art. In fact the artists
with prime talent in these organizations be-      Due to lack of funding, theatre production
come so self obsessed that they never care        houses use the cheapest means to promote
about the consumption of their art for the end    their new products. And mostly the auditori-
consumer. They keep on producing high art         ums which are used for such theatrical per-
for which there is a limited audience and         formances are situated in a few specific areas
eventually no body is able to produce popular     which are inaccessible to masses. Therefore
art. There are two prime reasons for this:        minimal promotional efforts are nullified by
                                                  limited access to theatrical arenas.
-Those who can produce popular art in a com-
mercially viable way indulge in producing self
fulfilling high art, which is seen by a handful
and eventually making it non consumable for




T HE   LOOK ING      GLASS
P AGE    19


PRICE

Theatre in India has struggled to reach break
even point. Theatre production houses who
hire or have fulltime / part time performers
in it incur the expenses as shown in table 1.
On an average, a theatrical performance in-
volves 3 to 4 lead actors and 4-6 support ac-
tors. Lighting personnel play a key role in
designing the lights for the stage show and
are generally hired by theatre groups exter-
nally for specific periods. In general the thea-
tre production houses keep single show on
                                                   Product Place matrix
Saturday and double shows on Sunday. This
format is repeated for two weeks. This means
                                                   The above shows the product place matrix for
that in general six shows are performed for
                                                   theatre productions. Following inferences can
each production. The capacity of the audito-
                                                   be deducted from product place matrix:
rium is approximately 350.
                                                      High Art consumers are less and they reach
The total expense of Rs 425000 is averaged
for six performances in a span of two weeks.           accessible as well as inaccessible places for
Therefore the average charge for each per-             art consumption.
formance comes to about Rs 70000. And the
average seating capacity of an auditorium is          Popular art consumers do not try to reach
350 , which means that in order to break               to inaccessible locations but will reach in
even each ticket shall be priced Rs 200.It is          high numbers to accessible locations.
difficult to ensure a full house in these per-
formances and if the performance turns out         STRATEGIES FOR THEATRE MARKETING
to be a high art performance then the audi-
ence drops drastically and the production          It is a well accepted fact in marketing that if
becomes commercially unviable. Therefore it        you have problems in more than 2 P‟s of mar-
is quite evident from the basic calculations       keting mix then it surely means that the mar-
that it is not profitable to run the theatre       keter does not understand the segment of con-
business with a specific and captive audi-         sumers. In theatre marketing mix, it is evident
ence. Theatre needs mass marketing to make         that theatre production houses have serious
it commercially viable.                            problems with product, price, and promotion
                                                   and place as well. The key strategies for effec-
PLACE                                              tive theatre marketing are as follows:

The places where the theatre products are             Correct segmentation of culture consumer
distributed need good acoustic arrange-                for consumption of different forms of art.
ments, lighting facilities and pleasant ambi-          Based on the segmentation, the different
ence. Therefore‟ theatre production houses             sections of consumers should be targeted
rely heavily on a few select auditoriums.              with specific theatre products and posi-
These auditoriums are generally run by gov-            tioned in accessible locations.
ernment or small charitable trusts or some
private hospitality organizations. Access to          Cultural organizations such as theatre pro-
these places is limited to high end audiences          duction houses or Government funded
who have taste for cultural products. The en-          theatre schools should diffuse the bound-
during audience for these places is mostly             ary between high art and popular art. And
constituted by those who consume high art              theatre artist should produce theatre prod-
products and therefore theatre production              ucts related to popular art.
houses that produce popular art products ,
stage them in available select places are not         Based on the cost of theatrical productions
able to attract mass audience. High art audi-          it is quite evident that it will be difficult to
ence does not attend such performances and             break even with existing high art audience,
thus creating a losing proposition for theatre         therefore theatre production houses shall
production houses.                                     make their products available at accessible
                                                       places such as cinema complexes, shop-



        T HE   LOOK ING      GLASS
P AGE    20


    ping malls and other community places.           Finally, it can be concluded that Indian thea-
    Popular art lovers and high art lovers spend     tre which exists in various forms in India has
    their time in public places such as mall and     huge potential. It can be marketed to a mass
    cinema complexes. The cultural organiza-         audience if proper segmentation of high art
    tions should partner with cinema complexes       consumers and popular art consumers is
    to stage the live performances in such           done. Digital marketing strategy coupled
    places. The cinema complex owners like Fun       with accessible locations for staging live per-
    cinemas, PVR, INOX etc should be con-            formances will help in attracting large num-
    tracted to spare at least one screen for live    ber of audience in timely manner and thus
    performance and promote theatrical prod-         make Indian theatre a commercially viable
    ucts in such spaces.                             business.

   Theatre can become commercially viable by        ACKNOWLEDGEMENT
    integrating mass marketing and mass con-
    sumption through low cost positioning, wide      The author is thankful to the theater actors,
    communication and deep distribution. India       directors and writers from Delhi‟s National
    is home to various forms of theatre in differ-   School of Drama, theatre production house
    ent languages therefore a correct segmenta-      ASMITA, Delhi, Rangashankara, Bangalore
    tion can help theatre become viable.             and Prithvi theatre, Mumbai, for the inputs
                                                     provided.
   Catch them young: All of us become a rou-
    tine audience to film entertainment because      Mukesh Sharma is currently pursuing his one year full time
    we are exposed to it through television from     MBA (EPGP) from IIM Bangalore. He has spent more than 10
    childhood days and thus we become cultur-        years in automotive industry. He runs a non profit theatre group,
    ally habitual to it. Therefore a theatre cul-    Performer Group, in Delhi. He has acted, directed and produced
    ture needs to be cultivated in Indian society    various plays of social relevance in Delhi.
    and this can be achieved by partnering with
    educational institutes. In western world,
    Theatre in education constitutes an integral
    part of educational curriculum, which helps
    in cultivating a strong theatre culture in the   Marketing Jokes!!!
    society. Theatre production houses, non
    profit organizations and Government shall        Two women were shopping. When they started to discuss
    introduce Theatre in education (T.I.E) as a      their lives, one said, "Seems like all John and I do anymore is
    compulsory subject in middle and senior          fight. I've been so upset I've lost 20 pounds."
    school education. This will help in creating     "Why don't you just leave him then?" asked her friend.
    art awareness and art consumers in our so-       "Oh! Not yet." the first replied, "I'd like to lose at least an-
    ciety.                                           other fifteen pounds first."
                                                     Marketing moral: Ya gotta have a goal!
   Digital marketing: Theatrical products are
    plagued from poor distribution and access        A retailer was dismayed when a competitor selling the same
    problems. One of the crucial issues related      type of product opened next-door to him, displaying a large
    to theatre marketing is the booking of tick-     sign proclaiming "Best Deals."
    ets. Recently in few select cities some thea-    Not long after that, he was horrified to find yet another
    tre production houses have tied up with          competitor move in next door, on the other side if his store.
    digital marketers to allow web based book-       It's large sign was even more disturbing—"Lowest Prices."
    ings but a large part of Indian theatre is un-   After his initial panic, and concern that he would be driven
    touched to digital marketing concept. There-     out of business, he looked for a way to turn the situation to
    fore a unified effort shall be raised to help
                                                     his marketing advantage. Finally, an idea came to him. Next
    theatre production houses to market their
                                                     day, he proudly unveiled a new and huge sign over his front
    products digitally to art consumers.
                                                     door. It read,
                                                     "Main Entrance!"

                                                     The Difference Between Optimism, Pessimism & Marketing
                                                     The Optimist says, "The glass is half full."
CONCLUSION                                           The Pessimist says, "The glass is half empty."
                                                     The Marketing Consultant says,
                                                     "Your glass needs re-sizing."


T HE   LOOK ING       GLASS
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The Looking Glass

  • 1. Pan IIM Marketing Digest The Looking Glass
  • 2. THE LOOKING Editorial GLASS Online Partner: Dare2Compete In this edition Dear Readers Measuring the Effectiveness of the Humour Quotient in Indian Advetising ……3 It gives us immense pleasure to bring out the first ever PAN-IIM marketing digest, with a joint effort by the marketing clubs of IIMs A, B, C and L. Influencer Marketing ..…..6 If you take time to look around, you would observe the importance of marketing in every sphere of your life. Implicit Positioning and Surrogate Advertising .........9 Starting from the time you get up in the morning, the brush, toothpaste you use, right up to the time you crash on your bed at night, just think of those countless brands that shape your daily lifestyle. It‟s a continuous tussle Fake IPL Player: Redefining Marketing ..…..11 between those myriad brands laid across the horizon of consumer observation span. In a season where marketers Effective Multi-tiered Promotions: are leaving no stone unturned trying to grab consumer attention, marketing automatically assumes utmost impor- Lessons From Santoor ..…..13 tance. The world is brutal. It‟s no longer about marketing your product right. It‟s basically a requisite for sur- vival. If you don‟t do it, your competitors will. And the consumers have plenty of options. So, basically if you 4P's of Indian Theatre Marketing ..…...17 don‟t sell, your competitors will. Neo-Political Marketing ...….21 We decided to come up with a collection of choicest articles contributed by students and industry personnel, which would highlight the trends of contemporary marketing. And for the same reason we decided to call the digest, „The Looking Glass‟, because we feel it will give a true reflection of marketing, and the direction it is taking in today‟s Strategic Marketing for Educational Institutions…..25 scenario. The articles touch a wide array of topics which have assumed importance in the recent past. How has humour been used effectively by marketers? How do you sell educational institutes? What exactly did the Fake Welcome to Marketing, the third epoch! ........28 IPL Player do for KKR? How do advertisers resort to surrogate advertising? What are the trends in online mar- Sidestepping the Commoditization of keting? These, and many more articles inside would keep you engrossed as you go through the pages, we hope. Disruptive Innovations …...30 There are those who envision, and then there are those who work to make the vision a reality. We are proud to Sales Role in Fixed Income Securities Market ……32 say that we had a team which did both. We would like to thank all those who were involved taking the digest to the completion stage. There was a tremendous amount of co-ordination and synchronization put in by the market- Valuation of TV Advertising …….34 ing clubs of the 4 IIMs. At every stage of development we also received immense support from the faculty in the form of guidance and encouragement. Also, a very special thanks to Mr. Prakash Bagri, Director of Marketing, Ogilvy and Mather Trivia …….36 Intel South Asia, for sharing his insights on the evolution and future of marketing, in the digest. Is Recession the time to tighten Ad Budget? …….37 In future we plan to evolve by bringing in greater participation from the industry and experts and initiating wider Low Cost Customer Acquisition distribution. Please do send us your feedback at looking.glass.mag@gmail.com. Strategies for E-businesses …….39 Yours Truly State of the Market -A Comparative Study …….42 Mayank Jain, Prasad Gopal , Robin Joseph , Garima Mamgain Does Green Marketing Sell? ……..44 Men's Cosmetics ……..48 Team Editors Design Pan IIM Team Mayank Jain (IIMC) Yatish Misra (IIMC) Piyush Mehta (IIMC) Chayan Mukhopadhyay (IIMB) Prasad Gopal (IIMB) Prativa Lama (IIMB) Brijesh Unithan (IIMC) Gautam Attravan (IIMB) Robin Joseph (IIMA) Rajkul Fulzele (IIMA) Mafla Mudgal (IIMC) Shreshth Sharma (IIMB) Garima Mamgain (IIML) Rishi Varshney (IIML) Nikhil Joshi (IIMC) Meenakshi Prasad (IIML) Amit Sharma (IIML) Pratik Prakash (IIMC) Saikat Mondal (IIML) Sanglap Bannerjee (IIMC) Ganesh PR (IIML) Abhishek Mohan (IIMB) Manoj Kumar Kamble (IIML)
  • 3. P AGE 3 Measuring the Effectiveness of the Humour Quotient in Indian Advertising In this article, we explore the hu- Humour can come in many forms mour quotient in Indian advertis- and the choice of the appropriate ing through the lens of certain type is highly dependent on the television ad campaigns that have target audience, the cultural bias, tickled the consumer funny bone the choice of advertising medium in order to evaluate the effective- and the product itself. Some of ness of such campaigns. We di- the more popularly used forms verge from the traditionalist body are: of literature that brackets hu-  Personification: This is mour in advertising as risky and where inanimate objects assume at best, as effective as other ads. human characteristics and the Our contention is that an ad inherent humour in observing campaign based on humour such behaviour is used to high- stands out from the crowd and light some quality or the desir- captures the consumer mind- ability of the brand. One such share. example is Pepsi‟s „Oye Bubbly‟ campaign in which various ob- Our contention is that INTRODUCTION jects such as the car stereo and an ad campaign based the garage are shown coveting the When using humour to advertise Pepsi bottle. on humour stands out a product, the main challenge for from the crowd and  Exaggeration: Here certain marketers is to link the advertise- captures the consumer attributes of the product are ment to the underlying brand so magnified out of proportion like mindshare. as to translate consumer enjoy- the Fevikwik ads where the fish- ment to consumer purchase. This erman uses Fevikwik on a stick linkage is questioned by numer- to catch fish, trumping the so- ous researchers with the distrac- phisticated fishing gear of the tion of the consumer from the person next to him. brand quoted as the chief flaw of such a strategy. We diverge from  Slapstick: This particular this view – our contention is that brand of humour deals with the the industry context and basis of ludicrous/exaggerated and pre- competition is also critical to the nature of advertisements used. sents situations where the hu- Our frame of analysis would be morous aspect of the ad, far from campaigns that are recognized for being subtle, strikes the viewer in their innovative use of humour the face, the Chlormint ads being including Fevicol and Fewikwik, a prime example of this. Happydent White, Vodafone Zoo- zoos, Idea Cellular, Frooti, Tata Other forms include sarcasm, Indian advertisements, Sky, Sprite. comparison, pun, understate- in the past, have ment and irony. However, there is mostly derived their TYPES OF HUMOUR a strong cultural context for such humour from the in- Back in the 1960‟s, a golden rule advertisements. Individualistic terplay between multi- in advertising, propagated by the cultures like the US and UK typi- ple characters. founder of Prentice-Hall, was to cally feature advertisements hav- never mix humour and advertis- ing one or two dominant charac- ing. Today, with the proliferation of product offerings, humour is ters while in more collectivistic increasingly being looked upon cultures like Thailand, ads re- not as a distraction that trivial- volve around groups. Similarly, izes the product, but as an effec- the degree of uncertainty avoid- tive means of distinguishing the ance and the amount of mascu- product from the crowd and line dominance in the culture of a drawing the attention of con- country are key factors in influ- sumer. T HE LOOK ING GLASS
  • 4. P AGE 4 influencing the type of humour that can be spectrum – be it the group oriented Fevicol successfully used in advertisements, with truck ad showing people stuffed into a truck, countries high on these two parameters tend- or the more individual oriented Fevikwik fish- ing to prefer slapstick or direct humour to erman ad, from the slapstick Akai TV ads of subtle nuances and double entendres. old to the more subtle Camlin Marker ads, to the extent that even potentially controversial Analyzing the Indian advertising scenario ads like the Axe series have found acceptance keeping this cultural context in mind, certain in India, which is viewed to be conservative. key trends can be identified. Given the tradi- tional family oriented culture of India, Indian Case Studies: We examine the following ad- advertisements, in the past, have mostly de- vertising campaigns with a view towards illus- rived their humour from the interplay between trating the different types of humour that multiple characters. Also, in the past, humour works in the Indian context and also to meas- has tended to be largely slapstick, based on ure the effectiveness of these campaigns filmy spoofs and ridiculous situations. This is along multiple dimensions: Amaron, Frooti, part, can be attributed to the diversity of cul- Axe and Max New York Life Insurance. Our tures and languages found in India. Humor- choice is driven by the different types of hu- ous ads, therefore, must tread the thin line mour used in each of these campaigns. between keeping the cultural idioms of their target audience in mind and taking care not to Amaron (Amara Raja) batteries: The iconic offend the cultural sensibilities of any group. claymation advertisements with the catchy Slapstick offers an easy way out with situ- slogan of „Lasts Long Really Long...Ting Tong‟ ational humour having a broader reach while captured the imagination of the public and also ensuring that the punch line is not lost acted as clutter busters in 2002. The „Hare on the audience. and Tortoise‟ ad and the „Kumbhakarna ad‟ were aired on Doordarshan and other satellite channels and brought in tremendous brand EVOLUTION OF HUMOUR IN INDIAN ADS awareness for Amaron batteries – a new en- trant into the automotives battery space in Over the years, there has been a gradual evo- 2000. lution in the use of humour in Indian adver- tisements. The most obvious change has been Interestingly however, the expected spurt in the increasing use of humour with advertising sales did not materialize. The product was a agencies increasingly trying to grab the atten- low involvement one with incumbent advertis- tion of consumers through their funny bone. ing focussing on the toughness and macho image of the car battery. The dominant player In 1993, only 28% of commercials were hu- at that time, Exide, was well entrenched and mour-based. By 2001, at least 46% tried to Amaron did not manage to make a dent in incorporate some form of humour. And while their sales. The ad agency – O&M went back in most countries, funny ads have largely to the same claymation studio in 2004 to been associated with low-involvement prod- come up with a follow up, the „Pandu Mangal‟ ucts, in India, even high-involvement products ad. The uniqueness of this ad was the univer- like televisions and insurance have tried their sal nature of the humour – the bumbling cop in pursuit of a wily thief was instantly recog- hands at humour. nized and appreciated across all segments of A more subtle change that has been taking people. We also theorize that the humour was place is in the type of humour employed. well received as it relied on simple age-old From pure slapstick, ads are moving towards themes and had powerful visual imagery. This more intelligent comedy, with a more individu- ad consolidated Amaron as a powerful brand alistic bent, be it the Vodafone Zoozoos, which and was a platform for their explosive growth cleverly depicted a variety situations, each post-2006. In 2006 Amaron reverted to a with some link to a feature offered by Voda- stereotypical performance based campaign fone, or the Fasttrack „Move on‟ commercials, using racing stars like Karun Chandok and which perfectly capture the changing nature Narain Karthikeyan. Our take is that the hu- of Indian society today. India today is at a mour based advertising helped establish the crossroads, between its traditional past and a brand awareness but did not add to the top- more modern future, which perhaps explains line due to the low involvement of the car the success of ads across the entire cultural owners in the buying decision and the lack of product differentiation as the „Lasts Long‟ promise held true de-facto in the business. T HE LOOK ING GLASS
  • 5. P AGE 5 Frooti: The Digen Verma ad blitz that lasted Axe is by far the naughtiest brand in India for 15 days in February 2001 catapulted the and is targeted at the male aged 16-25. The brand into public imagination and generated a ads highlight various situations where the tremendous buzz across the country. The cam- guy, usually an ordinary next door paign was centred on a faceless college going neighbour kind of chap rather than a guy called Digen Verma worshipped by his hunk, gets pursued by different women. friends, girls and even peons – in general eve- Seduction is the dominant motif here, with ryone who knew him except for the stodgy old the women making the first move – a bold college professor. The teaser campaign com- idea for Indian audiences. Yet, it has cap- bined with the new caption for Frooti – „Just tured the pulse of its target audience per- Like That‟ was aimed at repositioning Frooti fectly. from a kids drink to one for the youth. Hence, a rebellious theme was adopted in the cam- Max New York Life: When Max New York paign. came out with their advertisement featur- ing an overzealous dad with his young child The last series of ads in this campaign show as he exhorts the child to repeat words of Digen ordering Frooti (of course Digen himself increasing complexity, consumers sat up is not shown on screen) – this causes pande- and took notice. The advertisement poked monium across the country and everyone fun at Indians who have a propensity to switches to Frooti immediately! This campaign push their children into various activities was unique in the effective use of suspense at a young age. Interestingly, the humour (watch this space approach) and humour in in the ad was well received – wry humour engaging consumer attention through various had worked on Indian screens after a long innovative forms of media (messages telling while! The ad demonstrated two things – Digen to remove his car from the parking lot one that Indians were willing to laugh at were flashed in theatres, bus stops had posters themselves and two, high involvement asking if Digen would be on the next bus and products could be advertised using hu- so forth). mour. A look at the sales figures show a marginal in- The sales of new policies shot up from the crease in the year the campaign was aired fol- slowdown in October – further the weighted lowed by steady increase in sales – the market new received premiums too shot up. The ad share decline was halted by this campaign had worked its magic. Max New York fol- though. Sceptics however claimed that the Di- lowed it up with another humorous ad in gen Verma persona had become more famous Apr-2009, this time poking fun at the re- and had marginalized the brand. Later, Frooti tired Indian male. switched to their old theme of „Fresh and Juicy‟ which did worse than the Digen Verma CONCLUSION campaign – hence in comparison the use of a unique style of humour proved to be more ef- Thus, the use of humour, in products fective for Frooti. where consumer preferences play a vital Axe: Our inclusion of Axe is a little controver- role in selection, not only helps bring the sial as its ads have straddled a thin line be- brand into the consumer‟s consideration tween sexism and naughtiness in terms of the set through increased brand awareness humour. We study it due to the unique nature and recall, but also appears to translate of the advertising – the same campaigns are directly to an increase in sales. aired worldwide and there has been no attempt to tone down the humour or modify it in any Kaushik Sriram is a 2nd year PGP student at IIM Banga- way for India. lore. He holds a Bachelors degree in Electronics and Communi- This dispels the notion that Indians are con- cation Engineering from National Institute of Technology (NIT) servative in their humour – of course the mar- Trichy and can be reached at kaushiksr08@iimb.ernet.in. keting for Axe was backed up by a great prod- uct too. The Axe effect in terms of sales and Rohini Ramachandran is a 2nd year PGP student at IIM market share has been spectacular to say the Bangalore. She holds a Bachelors degree in Electronics and Com- least. HUL (the parent company)replaced their munication Engineering from National Institute of Technology old deodorant brand Denim with Axe due to its (NIT) Trichy and can be reached at rohinira08@iimb.ernet.in. spectacular success. T HE LOOK ING GLASS
  • 6. P AGE 6 Influencer Marketing Welcome to the age of influencer marketing objective. WOMMA marketing. You might have wit- (Word of mouth marketing associa- nessed and experienced it in the tion) provides a handy classifica- past – it‟s just that the term has tion of influencers based on how become more visible. Youtube, they derive their power of influ- blogs, twitter – the tools can be ence. many, the message is the same - Once the target influencer has “you are being influenced.” been identified, the next step is to market the product to the influen- cer, to help increase the awareness Compared to traditional marketing among the influencer community. practices, influencer marketing fo- They then become well equipped to cuses on key types of individuals. It use their influence in favour of the aims to take advantage of the influ- ence these individuals have over firm. the target segment, with these in- fluencers becoming the centre of all The third and final set of activities marketing activities. involves the use of these influen- Imagine your next visit to cers to advocate to the target seg- your optician. After the ment. Influencers can play a direct regular eye check-up, he According to Duncan and Nick, or indirect role in this process. advises you to switch to these influencers may be potential contact lenses, informing What we see in case of contact buyers themselves, or they may be you of the pros and cons. lenses is an indirect approach third parties. These third parties You wonder what this is where the influencer (optician) is exist either in the supply chain leading to - is your optician raising awareness about the cate- (retailers, manufacturers, etc.) or working as an agent to some gory and not the brand. To comple- may be so-called value-added influ- contact lens manufacturer? ment the strategy, the manufac- encers (such as journalists, aca- Well, the answer to this turer might put some point of sale demics, industry analysts, profes- question can be both yes or merchandising to promote its prod- sional advisers, and so on) - Fig 1. no. He is just exercising his uct. The third and final set of ac- influence on your decision tivities involves the use of these making. The motivation for influencers to advocate to the tar- such an action could have Using Influencer Marketing get segment. Influencers can play a come from a manufacturer, The first and most important activ- direct or indirect role in this proc- in the form of incentives, ity in influencer marketing is iden- ess. What we see in case of contact such as higher margins. On tification of influencers and evalu- lenses is an indirect approach the other hand, he might ating their potential to serve the just be using his judgment and trying to help you out. Figure 1: Type of Influencers (source: WOMMA) T HE LOOK ING GLASS
  • 7. P AGE 7 where the influencer (optician) is raising Category/Subject Matter Expert group). awareness about the category and not the These doctors commanded a great amount brand. To complement the strategy, the of influence on their patients and most of manufacturer might put some point of sale the times their prescriptions acted as a merchandising to promote its product. command for the patients. Marico identi- fied these doctors and dieticians as its influencers. Industry Practices One of the most common applications of Marketing to these influencers is done influencer marketing is in medicines and through various activities. Here we list pharmaceutical products. In many cases, some of them: the active ingredient is common across companies, and the medicines are substi- tutable. Since the law prohibits any adver- tisements of prescription drugs, compa- nies rely on prescriptions from doctors to drive sales. Hence, they send their repre- sentatives to disseminate information to doctors and give them free samples (you might have seen „Physician‟s sample, not for sale‟ printed on mini packs in your doctor‟s clinic). Sometimes, the represen- tatives even check up with local chemists whether the medicines being promoted are selling, before they make a visit. Figure 2: Saffola's use of influencer Even in categories where advertising of the marketing product is permitted, like oral care, com- panies don‟t miss out on opportunities to 1. Product detailing and sampling to the promote their products to dentists. This is doctors. Marico promoters visit these because an advertisement can rarely have doctors and brief them about the the credibility, and hence the influence on product. They use product detailers the purchase decision, as compared to a and other research documents to suggestion from the consumer‟s dentist. backup their claim. Sampling helps in Another avenue that companies use to generating some trials if the doctors market themselves to influencers like den- find the product claims appropriate. tists is sponsoring lectures on recent Essentially, it‟s the same route that trends in oral care. Use of various dental pharmaceutical companies take for associations to certify one brand of tooth- their product. paste or toothbrush is another example of influencer marketing. Colgate has done 2. Involvement with various medical as- well in this regard in India. sociations and other such platforms. The visibility on such forums provides reach to a large section of influencer On a related note, Marico Ltd. has suc- community. cessfully used influencer marketing 3. Involving various key influencers to through cardiologists to promote its prod- help improve the product offering and ucts, especially Saffola Oil. Saffola is a saf- future product development. flower based refined edible oil that prom- ises to help control cholesterol for cardiac patients. When Marico launched this product in market, the biggest challenge it faced was that most of the customers were unaware about cholesterol. Cardiac pa- tients relied completely on their cardiolo- gists and family doctors for information (in WOMMA classification, these belong to T HE LOOK ING GLASS
  • 8. P AGE 8 Once these influencers become aware of the Top 10 Most Brilliant Marketing Screw Ups product and accept the effectiveness of the product, they do not hesitate in giving infor- mation about the same to their patients.  Coors put its slogan, "Turn it loose," into Spanish, where it Saffola today is part of many a diet charts was read as "Suffer from diarrhoea." and diet-guides because of such activities. It is most probably the only edible oil that is recommended by doctors during consulta-  Scandinavian vacuum manufacturer Electrolux used the tion. following in an American campaign: "Nothing sucks like an Electrolux." Another, most common use of influencer  Clairol introduced the "Mist Stick", a curling iron, into Ger- marketing in modern times is engaging tech- man only to find out that "mist" is slang for manure. Not nology experts during launch of new prod- too many people had use for the "manure stick." ucts. Most of the cell-phone manufacturers as well manufacturers of new age software  When Gerber started selling baby food in Africa, they used provide their product to these experts before the same packaging as in the U.S., with the beautiful Cau- the product is formally launched. The ex- casian baby on the label. Later they learned that in Africa, perts are encouraged to write about the companies routinely put pictures on the label of what's in- product. The influence these experts com- side, since most people can't read. mand over the tech savvy target segment helps in convincing early-buyers of the prod-  Colgate introduced a toothpaste in France called Cue, the uct and thus generating the initial thrust name of a notorious porno magazine. required for the success of the product.  An American T-shirt maker in Miami printed shirts for the Spanish market which promoted the Pope's visit. Instead of Influencer marketing gives a marketer an "I saw the Pope" (el Papa), the shirts read "I saw the po- opportunity to utilize resources beyond what tato" (la papa). is owned by the organization. This necessi- tates establishing professional and ethical norms on the marketer‟s part. The power of  Pepsi's "Come alive with the Pepsi Generation" translated influence also comes with great responsibil- into "Pepsi brings your ancestors back from the grave", in ity of using this influence in the right man- Chinese. ner. It is not uncommon to hear of compa- nies providing excessive incentives to influ-  Frank Perdue's chicken slogan, "it takes a strong man to encers, to ensure that they promote only make a tender chicken" was translated into Spanish as "it their products. The onus is on the marketer takes an aroused man to make a chicken affectionate." to define the ethical and professional boundaries and stay within them.  The Coca-Cola name in China was first read as "Ke-kou-ke- la", meaning "Bite the wax tadpole" or "female horse stuffed with wax", depending on the dialect. Coke then re- So, in case you are looking to visit your opti- searched 40,000 characters to find a phonetic equivalent cian anytime soon, at least now you know "ko-kou-ko-le", translating into "happiness in the mouth." that he might be influenced by Bausch and Lomb to „influence‟ you into buying contact  When Parker Pen marketed a ball-point pen in Mexico, its lenses. ads were supposed to have read, "It won't leak in your pocket and embarrass you". Instead, the company thought Ammar Tambawal is a 2nd year PGP student at IIM Ah- that the word "embarazar" (to impregnate) meant to em- medabad. He holds a Bachelors degree in Electronics Engineering barrass, so the ad read: "It won't leak in your pocket and fr om VESI T , B ombay and can be r each ed make you pregnant." at 8ammary@iimahd.ernet.in Pritesh Jain is a 2nd year PGP student at IIM Ahmedabad. He holds a Bachelors degree in Electronics and Communication Engineering from RV College of Engineering, Bangalore and can be reached at 8priteshj@iimahd.ernet.in T HE LOOK ING GLASS
  • 9. P AGE 9 Implicit positioning and surrogate advertising Advertising is widely accepted to be vertising avenues which often the most potent tool in the hand of a stretched the concept of brand ex- marketer. Whether it is to launch a tension to previously unheard-of lev- new product, entrench an existing els. These include the mundane such one, educate on the new salient fea- as sponsoring events (without ex- tures or create a new market, most plicit advertising) and Internet adver- consumer products manufacturers tising; the unconventional such as orient a considerable amount of ITC‟s diversification into clothing and time, energy and money to reaching apparel as well as the far-fetched out to existing and potential con- such as the Red and White Bravery sumers though various media such Awards and other lifetime achieve- as television, radio etc. as also new ment awards instituted mainly to age media like the Internet and Out perpetuate brand recall among the of Home (OOH) media. target audience. One interesting trend which was observed in the mid Origins 2000s was the “socially responsible In this context, one can imagine the advertising” taken up by many liquor predicament of a producer who is companies. Several advertisements mandated to legally produce and exhorting viewers to be responsible stock and then has his hands tied by citizens and refrain from driving after The ban on advertising of being denied the right to market the drinking were seen by media ana- tobacco and liquor produce. This is a ditch that many lysts as a form of surrogacy. introduced by the liquor and cigarette companies have Government of India Media analysts have also often won- found themselves in after the Gov- during the early 2000s has dered aloud that the ambitious for- ernment of India passed a blanket spawned a generation of ays made by Dr Vijay Mallya in avia- surrogate marketing ban on all advertising of „intoxicants tion, Formula 1 and related initiatives as corporations and harmful substances‟ in mid „glamorous‟ industries have as much leant to sell without 2002. Most of the large players to do with his desire to perpetuate communicating to the adapted quickly to introducing what his strong brand portfolio as the consumer. Many in the are termed as complimentary prod- prospect of de-risking his business industry have since started ucts which fell outside the ambit of by diversifying. to diversify into areas the Government‟s regulation. The where they can leverage significant ones include 8PM Whisky For the best part of this decade, the their brands’ aspirational (apple juice), Aristocrat Whisky tobacco and liquor manufacturing value; such as aviation, (apple juice), Bagpiper (club soda), lobby has been trying to persuade clothing and apparel and Hayward‟s 5000 Beer (kit of darts the government to relax the restric- sports. However the which was the centrepiece of the ad- surrogacy in advertising tions on advertising what are per- vertising campaign) and Gilbey's continues in the absence ceived as surrogate products. Fi- Green Label Whisky (mineral water); of a strong code by the nally, as late as March 2009, the and in this process was born a new ASCI and the government Government of India decided to the trend of surrogacy in advertising flip flops on the issue. hand a long rope under the stipula- which is commonly defined as The need of the hour is to tion that the surrogates have no „advertising one product with the come clean on the subject product linkages to intoxicants. view of selling another‟ and develop an However on June 10th this year, the unambiguous plan of Trends in surrogate advertising government tabled a bill to amend action the Cable Television Network Act of After the ban imposed on the 12 ad- 1994, which is likely to tighten the vertisements identified as surrogates screws on surrogate advertising even by the Government of India, and the further. show-cause notices issued to Star TV, Zee TV and Aaj Tak in 2002 un- Advertising Ethics der the provisions of the Cable Tele- vision Regulation Act of 2002, the whirlwind of surrogate ads hitting The Advertising Standards Council of the telly calmed down to a large ex- India (ASCI) issued clarifications at tent. Advertisers started diversifying various points of time that in accor- and shifted their focus to other ad- dance with the code laid for guiding T HE LOOK ING GLASS
  • 10. P AGE 10 If it has been established conclusively that ciga- rette smoking kills, why is it that it is available to anyone, irrespective of his or her age, at every street corner?” "It's difficult to digest that an industry which is ethical behaviour in advertising, the mere use allowed to sell its products, is banned from ad- of a brand name or company name which may vertising the same products, despite the fact be the same or related to a product put under that the commercials carry health warning, ad- advertising restriction may not be construed as vising the customers to use the product in tem- reason enough to find the advertisement objec- perance.", says Prof. Atul Tandan, Director, tionable. An exception may however be made Mudra Institute of Communications in an arti- in case the product which is advertised is not cle released in July 2002. freely available or is produced and distributed in minuscule quantities, which may not be suf- While such questions make intuitive sense, the ficient to warrant advertising costs. Also adver- practicality of banning production of tobacco tisements must not contain direct or indirect and liquor is unpalatable for the simple reason cues for the product under advertising restric- that these are very heavy contributors to In- tion. dia‟s tax kitty and the revenue loss due to a ban on production will most likely be catastro- However many advertisers must still grapple phic. Also the increasing pressure exerted by with ethical dilemmas as the existing code the WHO as well as NGOs and health activists leaves a lot of scope for interpretation. have forced the government to be seen doing something. As a result of this duality of pur- Voluntary abstinence pose, the tug-of-war continues without resolu- tion. A notable exception to the clamoring by the The need of the hour tobacco and liquor lobby and circumventing of stipulations to maintain sales is the conduct of ITC Ltd after the ban announced by the gov- The following measure will go a long way in ernment. In 2001, ITC voluntarily opted out of easing the deadlock seen here: the sponsorship deal that it had signed with the BCCI to sponsor the Indian cricket team The ASCI should have an unambiguous guide- and has since been de-emphasizing its ciga- line for differentiating acceptable and unac- rette brands in favor of other lines of business ceptable forms of advertising with respect to which are considerably more sustainable. It surrogate products. Also the ASCI should be has also taken up large scale Corporate Social empowered to implement the guidelines and Initiatives in rural India, the crown jewel being issue penalties for non-conformance. the e-Choupal initiative, to enable the agricul- The government needs to take a stand on the tural community to adopt a direct selling ap- issue. It must look beyond having the cake proach. (the advertising ban) and eating (tax revenues) it. Advertising companies must take pains to Two sides of the same coin: Ambiguity of understand the nature of the products and law market that they are dealing with and must refrain from designing and propagating surro- gate brands. Many in the industry question the practice of banning advertisements which effectively Nikhil Joshi is a 1st year PGDM student at IIM Calcutta. He erodes the ability to sell while at the same time holds a Bachelor‟s degree in Electronics and Telecommunication Engi- allowing production to continue. neering from University of Mumbai and has worked as a Software Testing Consultant with L&T Infotech. He can be reached at In an article published by The Hindu in March joshin2011@email.iimcal.as.in 2008 Ramesh Narayan, a communication con- sultant writes, “The advertiser‟s perspective is fairly straight- forward. If it is legal to manufacture, distribute and sell a product, why should it be illegal to promote the sale of that product? I don‟t think anyone can answer that question convincingly. T HE LOOK ING GLASS
  • 11. P AGE 11 Fake IPL Player: Redefining Marketing “Lord Almighty along with the Ca- lypso King decided to take the attack Further, according to a report pub- on to the Bubblies. The Phoren babas lished by Business Standard, the were happy when they saw Appam peak ratings of KKR matches on SET being slaughtered. Prince Charles of MAX channel were among the high- Patiala was all tensed up but est; at around 6 per cent of the total Bhookha Nan and Kaan Moolu were cable viewers above the age of 15 having a very good time with Sandy years. Baddy Babe.” A source representing one of the This may sound gibberish to many. sponsors summed it as “From an But those who have ever come advertiser‟s point of view, we have across the Fake IPL Player‟s blog at got a lot of mileage and media space any point of time would be laughing for the right and wrong reasons. The their hearts out. This blog has be- fact that it has managed to attract came a sensation in the cricketing television viewership and on-ground Fake IPL Player, a blog world. But at the same time it also released by an anonymous support from spectators speaks a lot made several great traditional mar- blogger during the Indian about the brand KKR”. keters sit up and take notice. Premier League (Season- 2), created a lot of furor in the cricketing world. This may be a coincidence. But What is this hype all about? But at the same time it surely Fake IPL Player has popular- stood out as an excellent Just a couple of days before the start ized the two relatively new strategies marketing campaign for of the IPL 2nd season in South Af- of marketing – Anti-Marketing and the Kolkata Knight rica, a blog was launched by an Buzz Marketing. Riders Team. Using the anonymous person, who claimed to unorthodox marketing be a member of the Kolkata Knight techniques of Anti- Anti Marketing Riders Squad. Throughout the IPL marketing and Buzz he kept sensationalizing the intra- Marketing, it could help After studying marketing campaigns team conflicts. Humor and Suspense KKR build up a strong and trends for several years, Indrajit brand value as well as - his two weapons- made the follow- “Jay” Sinha, an associate marketing generate enough TRPs on ers want more of it. professor at the Fox School of Busi- television. This article ness and Austrian marketing profes- analyses the different new sor Thomas Foscht, discovered that -age marketing techniques The result effective campaigns go against what with reference to the case traditional marketing preaches. They of the aforementioned Although Kolkata Knight Riders (KKR) kept up their dismal perform- have together published a book blog. “Reverse Psychology Marketing: The ance, they have emerged as the strongest IPL brand. According to Death of Traditional Marketing and the IPL Brand Value Scoreboard the Rise of the New Pull Game”, 2009 published by UK‟s Intangible which identifies and analyzes the Business in collaboration with MTI new marketing trends. Consulting, KKR tops the board with an estimated brand value of $22.3 According to the book -- “Traditional million. As Richard Yoxon, the Inter- marketing campaigns are focused national Director of Intangible Busi- around customer orientation. They ness puts it – “Winning games is not offer too much choice, confusion and enough to build a successful sports sales pressure, resulting in custom- brand. Teams need to engage the ers‟ boredom, cynicism and irrita- local community, attract star players tion. Less is more with present-day who inspire a wide audience and de- marketing. Customers now crave velop a strong marketing communi- simplicity, authenticity and exclusiv- cation program.” ity”. T HE LOOK ING GLASS
  • 12. P AGE 12 “Fake IPL Player” blog did exactly the same Interviews etc. But simulation and controlled thing. Instead of blowing its own horn, the conversations twist the facts to a certain ex- author tactically cooked up stories about in- tent thereby affecting the outcome of the data fighting within the team. This created a sen- analysis as done by market research agen- sation for the cricket crazy masses which in cies. turn strengthened the KKR brand. As market- ers put it “Any publicity is good publicity”. Uncontrolled conversation would let people There have been a few examples of successful vent out their emotions without any con- anti-marketing in the past. One such signifi- straints. This would in turn give marketers cant example is that of Steven Singer Jewel- better insights into consumer behaviors. lers. It has successfully executed a marketing Fake IPL player‟s blog generated a greater campaign – “I hate Steven Singer”. As a result buzz for Team KKR by encouraging uncon- it has become a landmark jeweler in the trolled conversation. Thousands of comments Philadelphia region. were posted in response to each blog post. This added flavor to the blog and generated Buzz marketing further interest in the blog as well as in the KKR team. This in turn resulted in the soar- Viral marketing describes any strategy that ing TRPs of the KKR matches. encourages individuals to pass on a market- ing message to others, creating the potential for exponential growth in the message's expo- The lesson sure and influence. Some claimed the Fake IPL player was a real life cricketer while others, at the same time, Buzz marketing is a viral marketing technique considered it a marketing gimmick of KKR, that attempts to make each encounter with a Shahrukh Khan et al. Though he did reveal consumer appear to be a unique, spontane- his identity in his own cryptic way, the Fake ous personal exchange of information; instead IPL Player remains anonymous as ever. What- of a calculated marketing pitch choreo- ever it may be, it has surely taught all estab- graphed by a professional advertiser. Al- lished and budding marketers a lesson. It‟s though the concept of Buzz marketing is not not about the big bucks spent on advertising new, but the way Web 2.0 is used these days, and promotion, but about innovative market- it has opened up several avenues for the new ing channels and creative strategies. Analyz- age marketers. Like viruses, such strategies ing the right media channel and the right take advantage of rapid multiplication to ex- creative message is far more fruitful than plode the message to thousands, and mil- some elaborate but outdated marketing and lions. promotion practices. This was the case with the Fake IPL Player. Welcome to the new „fake‟ world! The Fake IPL Player didn‟t spend a single penny. But he reached thousands. Overnight the blog became the talk of the town. He used Praneet Gourav Mishra is a 2nd Year student at IIM a simple and free user friendly web resource, Lucknow specializing in Marketing and Finance. He is a blogs, and spread through word-of-mouth “Mechanical Engineer” from NIT Rourkela and can be reached at communication. He realized the fact that get- mishra.praneet@gmail.com ting one interested user (or customer) will eventually result in several others getting in- terested in the product. More than 8000 fol- lowers of the blog stand testimony to this fact. Uncontrolled Conversation: the mantra of new-age advertisements Traditionally brands discouraged uncontrolled conversation on social media and read too much into the controlled conversations in a simulated environment e.g. FGDs, In-depth
  • 13. P AGE 13 Effective Multi-tiered Promotions: Lesson from Santoor Trade promotions refer to any activ- for promotions across different ity aimed at providing an incentive Population groups (POP groups) to the channel members for their and outlet types (Retailer or Whole- support in marketing and distribu- salers). Then we will describe Multi- tion of the product. There are a tiered promotions followed by its number of tools available to the application by Santoor brand. In marketer for the same such as price -off, allowances, free goods, trade the end we will consolidate the shows, sales contests, specialty ad- learning of the study. vertising, etc. Trade Preferences for Promo- The importance of such measures stems from the fact that the retailer tions: Primary survey is willing to sell only those products which have a demand in the market A structured questionnaire was de- and thus allow him to earn a profit. signed and was pre tested on a These measures incentivize the ef- sample of 7 retailers at Hyderabad forts that a channel member puts in city. Out of 101 outlets visited, 9 for increasing the sales of a product said they are not interested in pro- and create a „push‟ in the channel motional offers so no further ques- which may lead to a higher sales tions were asked about the promo- turnover. The push effect is of spe- tions. The survey findings are sum- Sales promotion is an essen- cial significance in product catego- marized below: tial part of any marketer’s ries where the differentiation be- activities. It can be classified tween products is not very high.  Deal Proneness: It was found as Trade promotion and One such category is the FMCG. that 91.08% of the traders were Consumer Promotion The deal prone. Similar trend was authors conducted a survey Within the FMCG sector, the adver- observed across outlet types about trade promotion ac- tisement campaigns that are run and POP groups. tivities in the soap industry bring the customer to the retail store, yet at the point of sale there  Deal Preference: It was found and found out that different are numerous options available. At that 64.13% of traders prefer types of traders prefer dif- price-cut promotions while rest this juncture the retailer can have ferent kinds of promotions. an impact on the purchase decision. preferred gift based promotions Every company must offer Incentives offered to the retailer, by like gift articles etc. Considering promotional schemes which the company or the wholesaler, mo- outlet type, 60.66% of retail out- cater to the needs of all tivate the retailer to push the brand lets prefer price cut while types of retailers. One ap- and affect the purchase decision 70.97% of wholesaler preferred proach of integrating varied favorably. price cut promotions. Across promotional efforts is multi- POP groups, FLP retailers were Through our study we intend to find more inclined towards price cut tiered promotion. To show the relevance of multi-tiered promo- (76.19%) as compare to lower the effectiveness of this tions for such categories. We chose POP groups (OLP – 60%, 20K- approach, we have shown 50K – 41.16%). In order words soap category (INR 6500 Cr) as it is the promotion efforts of the biggest category in FMCG seg- lower POP group retailers were Santoor soap in a particular ment. Within Soaps, Santoor is the interested in gift based promo- quarter. 2nd largest brand in India in the tions. popular segment, and also the larg- est brand in Andhra Pradesh with a  Time of Incentive: 56.52% of market share of 37.07% of the total trade prefers instant gratifica- 3,374 tons per month. One reason tion while rest prefers long term for the leadership position attained benefit. It can be concluded that is the multi-tiered promotion policy there is a mix response in the of the company. In this article we market. Considering the outlet will present the primary survey con- ducted to identify trade preferences type, 67.21% of retailers prefer instant gratification because of T HE LOOK ING GLASS
  • 14. P AGE 14 wholesaler having considerate stocking sales for the company. If there is an appro- capability and pushing power tends to priate multi tiered promotion mix, the com- opt more(64.52%) for long term plans pany can effectively achieve its sales targets. due to extra margins involved. The same trends follow in various POP To substantiate our proposal, we provide em- groups. pirical data on the multi tiered promotion  Type of Incentive: It was found that used by Santoor soaps during Jan-March 48.91% of trade prefers assured prizes 2009, in the Andhra Pradesh market while 51.09% of trade prefers to try some luck. The similar response was The Santoor Way from retailers and wholesalers. Looking at the POP groups, the retailers from Santoor uses multi-tiered trade promotions lower POP groups (20K-50K) were more with different time duration and promotion interested (64.70%) in lucky draw. The mix. We will measure the effectiveness by wholesalers from Metro (62%) and OLP observing the impact of sales. The promotion (71.42%) were more interested in lucky schemes run by Santoor can be classified as draw and bumper prizes. in Table 2. Leanings from the survey – Secondary Scheme  Preferences of traders for different promo- tions changes across outlet type and POP Adding to the regular margins and “primary groups schemes” each sales officer has been allotted  Customization of promotion schemes nec- budget of Rs 15 per CFC for the “secondary essary for effectiveness of the same – a mix of schemes”. The Sales Officer can tailor price based and gift based promotions to cater schemes on the basis of it. These schemes to the different needs of different traders are tactical in nature which is used by Sales officer to meet the sales target. The schemes  Promotion schemes with different time- are QPS (quantity purchased scheme) to give lines are preferred by different traders due to extra margins and offers for bulk purchase. their inherent nature (outlet type, planning The trade schemes used during Jan-May horizon, etc) 2009 were: Multi-Tiered Promotion Specific trade plan Multi tiered promotion refers to promotional Wipro regularly announced long duration (2- schemes running simultaneously at the same 3 months) trade plan to motivate trade for time and complementing each other towards bulk purchase. We will discuss Tambola meeting the sales targets of the company. The scheme (Jan-Mar 2009) for this article, which different schemes may be price based or gift involved a lucky draw for the prizes (Spark based, follow different timelines individually Car, Bajaj Motorcycle, Air Conditioner etc). and complement each other. The offering of the different schemes is based on the discre- The unique feature, early bird prizes to kick tion of the Sales Manager – who may focus start the program was valid for a period of more on a particular kind of scheme for differ- first 21 days. One Early bird Ticket for a ent traders keeping in mind their preferences. zonal lucky draw was given if the trader ob- For example – there is a weekly scheme (price tains 50 Tambola tickets. The prizes were or gift based) running which motivates retail- worth Rs 300 to Rs 6000. ers to buy higher stocks every week. At the same time, there is a monthly scheme wherein Effectiveness of the Multi-tiered promotion the retailer can win a gift on purchases of a mix was reflected in the increased sales dur- specified number of units or earn a special ing the scheme period of as shown in Table discount. Now even though initially the re- 4. tailer may think that the monthly target is be- yond his reach and may focus on just the weekly scheme, by the last week of the month the weekly target achievement would have During the Tambola scheme, the company brought him within sight of the monthly tar- also ran consumer promotions summarized get. This position may motivate him to achieve in Table 5. the monthly target as well, leading to higher T HE LOOK ING GLASS
  • 15. P AGE 15 Table 1: Parameters for Primary Survey Table 2: Multi-tiered Promotion by Santoor (Source – Personal Communication) Table 3: Tactical Weekly Scheme "Secondary Scheme" (Source – Personal Communication) Table 4: Effect of Multi-tiered Promotional mix on Sales (Source – Personal Communication) T HE LOOK ING GLASS
  • 16. erences. They also were seeing higher  Flash Start – This phase saw the launch of customer purchases due to the rejuve- the Tambola Scheme, along with the weekly nated customer promotion campaign. schemes (price and gift based) and con- sumer promotion. The long term schemes Thus we see that each of the schemes was generally fail to motivate traders during ini- complementing the others, with the choice tial period. In order to kick start the plan, of offering price or gift based incentives lying Wipro introduced early bird prizes to give with the sales manager, the schemes. We traders dual incentive to participate in the see that the multi-tiered approach for pro- plan. The short term incentive though motional mix was followed leading to higher brought buzz in the market it was amply sales and success in the market. supported by tactical weekly schemes suit- ing both the preference, gift and price pro- Conclusion motion of traders. The weekly schemes in the first two weeks brought them close to the target for early bird prizes leading to The conclusion of the study is that the higher purchases in the third week. At the trader preferences for promotion schemes same time, higher push in the channel was vary, between price based and gift based complemented by a consumer promotion. incentives. The preference for the scheme So the traders were purchasing more to be horizon also varies with the size, type and eligible for weekly and/or early bird scheme nature of the trader. Some traders prefer while the customers were also demanding short term incentives which provide instant more of the soap. Thus, Multi-tiered promo- gratification while some prefer long term tion mix (weekly and early bird scheme) benefits. To be effective, a promotion mix helped Wipro to motivate traders to pur- needs to consider all kinds of traders. Multi chase more so as to be eligible for another tiered promotion is an approach for the tier of incentive i.e. Tambola scheme in its same, which can provide different types of first phase. incentives to different traders, vary the in- centive horizon, and integrate every simulta-  Mid slump – During this phase, the weekly neous scheme towards the achievement of schemes ran as before, the customer pro- the overall sales target of the company. The motion also ran without change. The overall approach has been used in the market by Tambola Scheme was also present, without Santoor, and effective execution can lead to the early bird scheme. The benefit of such a better results. strategy was that traders who had built high stocks in the first phase were able to clear them out. The consistency of con- sumer promotion was a deliberate attempt Abhishek Sood is a 2nd year PGP student at IIM Bangalore. He holds a Bachelors degree in Commerce (Honours) from Sri to help trader in finishing their accumu- Venkateswara College, University of Delhi and can be reached at lated stock as superior change in consumer abhishekso08@iimb.ernet.in. promotion would shift the consumer de- mand towards the freshly offered stock The Akhil Kumar Meshram is a 2nd year PGP student at IIM weekly benefits were for those traders who Bangalore. He holds a dual degree, Bachelors and Masters in were either not covered by the early bird Information Technology from Indian Institute of Information scheme, or were not interested in the long Technology and Management (IIITM) Gwalior and can be term benefits. They benefitted immensely reached at akhilkm08@iimb.ernet.in. with the continuing weekly offers.  Late Push – In this phase, the weekly schemes continued as before, the customer promotion was changed so as to motivate trader to purchase more and at the same time, there was an increased focus on the Tambola scheme. The traders, who had been utilizing the weekly schemes, and early bird scheme were close to the targets for the Tambola scheme – and in their effort to achieve this target, they could utilize the weekly schemes which were mix of price and gift based promotion as per their pref-
  • 17. P AGE 17 4P’s of Indian Theatre Marketing Dharamveer Bharati and B.M Shah Theatre has been the soul of Indian Kutiyattam in Kerala. Noted con- entertainment since Vedic times. temporary playwrights like Habib The different forms of theatre acts Tanvir, Vijay Tendulkar, and Mohan in India have given an incredible and unparalleled versatility to In- Rakesh, Girish Karnad, Mahesh dian art and culture. The father of Dattani, Badal Sircar, Dharamveer Indian theatre Bharat Muni who Bharati and B.M Shah revolution- wrote Natya Shastra laid the foun- ized the art of story telling and mod- dation of structured training in ern theater. We must acknowledge field of theatre and dramatics be- the contribution of stalwarts like tween 200 BC and 200 AD. Theatre Prithivi Raj Kapoor, Sohrab Modi, as an art form in India has its roots during the Vedic period. But Ebrahim Alkazi , Amal Allana, Om in spite of such a long period of Puri, Naseerudin Shah , ShahRukh existence , theater groups are still Khan, Manoj Bajpai , Atul Kulkarni, fighting to make theater commer- Yashpal Sharma and Sima Biswas, cially viable. This paper discusses who popularized Indian theatre and Theatre needs mass some aspects of Indian theatre , then moved to the film industry. categorization of art , process of marketization to theatrical productions , 4P‟s of theatre marketing mix , the needs THEATRE: PRODUCTIONS & make it commercially of today‟s culture consumers , the CHALLENGES difference between the high art and viable. popular art , competitors to theatre McCarthy (2001), categorized arts in and challenges faced by Indian four broad sections i.e. Performing theatre groups. Based on the com- arts, Media arts, Visual arts and Digital marketing prehensive discussions with nu- literary arts. The second figure strategy coupled with merous theatre artists and theatre shows the categorization of arts. accessible locations for activists, the paper lays down stra- Performing arts is further subdi- staging live tegic outline for a theatre market- ing plan in India. vided in to theatre, dance, music performances will help and opera. Media related arts are in attracting large subdivided in to installation art, number of audience in a INTRODUCTION timely manner and thus film production and the recent addi- make Indian theatre a tion of computer/digital arts. Visual Theatre is an ancient aesthetic commercially viable arts have been categorized into practice in India. Surviving play business. texts and treatises suggest that painting, sculpture and crafts. The theatre existed in the Indian sub- last section, literary art is classified continent from the dawn of civiliza- into fictions and poetry. tion. According to the Natyashastra of Bharata, an exhaustive treatise Any theatre production involves a on the art of performance, drama series of rigorous steps. The second was a gift from the gods to the hu- figure shows the steps involved in mans. making a theatrical production and Theatre has travelled many centu- bringing it to the people. Theatrical ries in India. The different active scripts are conventionally sourced forms of theatre in India which are from historical writings or adapted still mesmerizing the art lovers are or written right from scratch. Once Bhavai in Gujarat , Yakshagana in the script is ready then it is sub- Karnataka , Nautanki in Uttar jected to production. Support and Pradesh and Bihar , Swang in inputs from musicians, choreogra- Haryana , Jatra in Bengal and phers, actors, costumes. Lighting Mohan Rakesh, Girish Karnad, and direction result in a presentable Mahesh Dattani,Badal Sircar , form of a theatre product. T HE LOOK ING GLASS
  • 18. P AGE 18 The second figure shows the marketing effort the masses. to reach culture consumers. The figure shows two triangles with a small and big base. The -As there is less and limited consumption of smaller base shows the existing marketing available high art, therefore popularity of art is effort and the bigger base shows the intended limited and this results in a decrease in audi- marketing effort. ence. As a result , those who want to produce popular art do not get sufficient funds to pro- The various new challenges in cultural con- duce commercially viable popular art. sumption are: decrease in consumer time for PROMOTION leisure, expansion of consumer options for entertainment, expanded exposure to world‟s The promotional strategies used by theatre cultural products, blurring the distinction be- production houses are very limited. Recently tween high and popular culture and changing few corporate houses have started funding the patterns in public funding. These challenges theatre production houses e.g. Matrix cellular, in cultural consumption have created a tough Vodafone, Religare, and Mahindra and Mahin- competition for the consumption of theatrical dra. These corporate houses use extensive products. publicity and advertisements for popular art but it has not resulted in creating an enduring audience. The traditional form of publicity techniques used by theatre production houses are as follows:  Occasional advertisements in leading news papers which occupy very small column width and do not create any lasting im- pression on potential audience.  Small printed pamphlets are manually dis- tributed outside the auditoriums. This only helps to inform the existing theatre audi- ence. This localized and captive distribu- tion does not create awareness to potential audience.  Few theatre production houses have 4 P’S OF THEATRE MARKETING started using cultural websites to promote their new productions on cost free basis. PRODUCT But the irony is that due to lack of funding and advertisements such cultural websites High art Vs Popular art: The principal problem are struggling. with the consumption of theatre products is the distinction between high art and popular art. The prominent and “talent rich” houses of  The other means of promotion is through theatrical productions like National school of word of mouth. But word of mouth promo- drama , Naya theatre and Rangshankara fail tions by existing audiences are not able to to distinguish between the consumption of generate enduring audiences. high art and popular art. In fact the artists with prime talent in these organizations be- Due to lack of funding, theatre production come so self obsessed that they never care houses use the cheapest means to promote about the consumption of their art for the end their new products. And mostly the auditori- consumer. They keep on producing high art ums which are used for such theatrical per- for which there is a limited audience and formances are situated in a few specific areas eventually no body is able to produce popular which are inaccessible to masses. Therefore art. There are two prime reasons for this: minimal promotional efforts are nullified by limited access to theatrical arenas. -Those who can produce popular art in a com- mercially viable way indulge in producing self fulfilling high art, which is seen by a handful and eventually making it non consumable for T HE LOOK ING GLASS
  • 19. P AGE 19 PRICE Theatre in India has struggled to reach break even point. Theatre production houses who hire or have fulltime / part time performers in it incur the expenses as shown in table 1. On an average, a theatrical performance in- volves 3 to 4 lead actors and 4-6 support ac- tors. Lighting personnel play a key role in designing the lights for the stage show and are generally hired by theatre groups exter- nally for specific periods. In general the thea- tre production houses keep single show on Product Place matrix Saturday and double shows on Sunday. This format is repeated for two weeks. This means The above shows the product place matrix for that in general six shows are performed for theatre productions. Following inferences can each production. The capacity of the audito- be deducted from product place matrix: rium is approximately 350.  High Art consumers are less and they reach The total expense of Rs 425000 is averaged for six performances in a span of two weeks. accessible as well as inaccessible places for Therefore the average charge for each per- art consumption. formance comes to about Rs 70000. And the average seating capacity of an auditorium is  Popular art consumers do not try to reach 350 , which means that in order to break to inaccessible locations but will reach in even each ticket shall be priced Rs 200.It is high numbers to accessible locations. difficult to ensure a full house in these per- formances and if the performance turns out STRATEGIES FOR THEATRE MARKETING to be a high art performance then the audi- ence drops drastically and the production It is a well accepted fact in marketing that if becomes commercially unviable. Therefore it you have problems in more than 2 P‟s of mar- is quite evident from the basic calculations keting mix then it surely means that the mar- that it is not profitable to run the theatre keter does not understand the segment of con- business with a specific and captive audi- sumers. In theatre marketing mix, it is evident ence. Theatre needs mass marketing to make that theatre production houses have serious it commercially viable. problems with product, price, and promotion and place as well. The key strategies for effec- PLACE tive theatre marketing are as follows: The places where the theatre products are  Correct segmentation of culture consumer distributed need good acoustic arrange- for consumption of different forms of art. ments, lighting facilities and pleasant ambi- Based on the segmentation, the different ence. Therefore‟ theatre production houses sections of consumers should be targeted rely heavily on a few select auditoriums. with specific theatre products and posi- These auditoriums are generally run by gov- tioned in accessible locations. ernment or small charitable trusts or some private hospitality organizations. Access to  Cultural organizations such as theatre pro- these places is limited to high end audiences duction houses or Government funded who have taste for cultural products. The en- theatre schools should diffuse the bound- during audience for these places is mostly ary between high art and popular art. And constituted by those who consume high art theatre artist should produce theatre prod- products and therefore theatre production ucts related to popular art. houses that produce popular art products , stage them in available select places are not  Based on the cost of theatrical productions able to attract mass audience. High art audi- it is quite evident that it will be difficult to ence does not attend such performances and break even with existing high art audience, thus creating a losing proposition for theatre therefore theatre production houses shall production houses. make their products available at accessible places such as cinema complexes, shop- T HE LOOK ING GLASS
  • 20. P AGE 20 ping malls and other community places. Finally, it can be concluded that Indian thea- Popular art lovers and high art lovers spend tre which exists in various forms in India has their time in public places such as mall and huge potential. It can be marketed to a mass cinema complexes. The cultural organiza- audience if proper segmentation of high art tions should partner with cinema complexes consumers and popular art consumers is to stage the live performances in such done. Digital marketing strategy coupled places. The cinema complex owners like Fun with accessible locations for staging live per- cinemas, PVR, INOX etc should be con- formances will help in attracting large num- tracted to spare at least one screen for live ber of audience in timely manner and thus performance and promote theatrical prod- make Indian theatre a commercially viable ucts in such spaces. business.  Theatre can become commercially viable by ACKNOWLEDGEMENT integrating mass marketing and mass con- sumption through low cost positioning, wide The author is thankful to the theater actors, communication and deep distribution. India directors and writers from Delhi‟s National is home to various forms of theatre in differ- School of Drama, theatre production house ent languages therefore a correct segmenta- ASMITA, Delhi, Rangashankara, Bangalore tion can help theatre become viable. and Prithvi theatre, Mumbai, for the inputs provided.  Catch them young: All of us become a rou- tine audience to film entertainment because Mukesh Sharma is currently pursuing his one year full time we are exposed to it through television from MBA (EPGP) from IIM Bangalore. He has spent more than 10 childhood days and thus we become cultur- years in automotive industry. He runs a non profit theatre group, ally habitual to it. Therefore a theatre cul- Performer Group, in Delhi. He has acted, directed and produced ture needs to be cultivated in Indian society various plays of social relevance in Delhi. and this can be achieved by partnering with educational institutes. In western world, Theatre in education constitutes an integral part of educational curriculum, which helps in cultivating a strong theatre culture in the Marketing Jokes!!! society. Theatre production houses, non profit organizations and Government shall Two women were shopping. When they started to discuss introduce Theatre in education (T.I.E) as a their lives, one said, "Seems like all John and I do anymore is compulsory subject in middle and senior fight. I've been so upset I've lost 20 pounds." school education. This will help in creating "Why don't you just leave him then?" asked her friend. art awareness and art consumers in our so- "Oh! Not yet." the first replied, "I'd like to lose at least an- ciety. other fifteen pounds first." Marketing moral: Ya gotta have a goal!  Digital marketing: Theatrical products are plagued from poor distribution and access A retailer was dismayed when a competitor selling the same problems. One of the crucial issues related type of product opened next-door to him, displaying a large to theatre marketing is the booking of tick- sign proclaiming "Best Deals." ets. Recently in few select cities some thea- Not long after that, he was horrified to find yet another tre production houses have tied up with competitor move in next door, on the other side if his store. digital marketers to allow web based book- It's large sign was even more disturbing—"Lowest Prices." ings but a large part of Indian theatre is un- After his initial panic, and concern that he would be driven touched to digital marketing concept. There- out of business, he looked for a way to turn the situation to fore a unified effort shall be raised to help his marketing advantage. Finally, an idea came to him. Next theatre production houses to market their day, he proudly unveiled a new and huge sign over his front products digitally to art consumers. door. It read, "Main Entrance!" The Difference Between Optimism, Pessimism & Marketing The Optimist says, "The glass is half full." CONCLUSION The Pessimist says, "The glass is half empty." The Marketing Consultant says, "Your glass needs re-sizing." T HE LOOK ING GLASS