Markathon April 2011

Dear Readers,

It is that time of the year again, when the B-schools students find themselves undergoing the Summer Internship, exploring the world of marketing on a first hand basis for probably the first time. The experience is surely going to be one filled with learning and understanding how the ground reality is different from what we’ve read in our books- Kotler and the likes.

The one question that was on all Media Buying companies, WC or IPL, seems to have been answered for now. The IPL viewership figures have not been very encouraging compared to the WC which was a runaway hit. Maybe the latter part of the IPL might see some better numbers.

One campaign that has caught my eye during the IPL has been that of Cadbury’s rejuvenated “Kuch Meetha ho Jaaye” one. It is a very smart move by Cadbury which is trying to position Dairy Milk as a post mean dessert snack which might reap rich dividends. This moves away from the normal positioning as a chocolate for special occasions and festivals.

Markathon has always strived to bring you the best analysis and content related to the domain of marketing. In continuation with this singular objective, Markathon is proud to announce that we are starting a brand new feature from this edition. We have Mr. Martin Lindstrom, Bestselling author and premier Brand Consultant, giving us his wonderful insights about Brands and buying behaviour of consumers. In this month’s edition, we feature his thought provoking article, Smash Your Brand, which talks about how a brand’s logos should be designed to maintain its identity even when smashed into pieces. We are bringing this feature as syndication in association with The Martin Lindstrom Company Ltd. Markathon thanks them for giving us access to the wonderful article base.

Our cover story for this month is on Brand India. Much has been talked about how India is emerging as a brand after liberalisation. In our story we explore what Brand India means and how it is evolving. We dig deep to identify the meaning of a Country brand and the origin of the term Brand India. We also look at how the Government is working for Brand India as well as what it has done for the ‘Aam Aadmi’ of the country. I am sure you will find the story a fascinating and informative read.

In this month’s Vartalaap we have a very special guest, Mr. Vivek Mehra who is the MD and CEO of Sage Publications India Ltd. He gives us a wonderful interview running us through the world of publishing and also SAGE publications’ Legends of Marketing Series.

Happy Reading!

Jitesh

Jitesh Pradeep Patel

Markathon March 2011

Dear Readers,

As I sit down to write my first editorial, there is one thing at the back of my mind and everyone else too. India vs Pakistan at Mohali. The World Cup has grabbed viewers’ eyeballs and the headlines of all the newspapers across the country. If the last WC in 2007 was an advertiser’s nightmare, this one has been a dream especially since all the subcontinent teams are still in the fray.

The viewership has been off the charts and just the group matches had a higher cumulative viewership than the IPL Season 3. All the questions about where to put in advertising money, World Cup or IPL , have been put to rest with such astounding viewership numbers. This coupled with the Official Internet viewership is a clear indicator that the World Cup has a better appeal than the IPL.

There have been loads of marketing campaigns built around the world cup. From the downright disastrous to some smartly crafted ones. The Vodafone Super ZooZoo has been a runaway hit. There has been one campaign though which I found to be very well made and has somehow not made much of an impact, the Sprite University of Freshology campaign has slowly positioned Sprite as the smart, sassy, young people’s drink from its earlier image of being a thirst quencher (Sprite bujhaaye pyaas campaign).

The tagline which they have adopted now is ‘First drink, then think, Sprite – University of Freshology. The campaign should help establish Sprite as a refreshing drink and cement its position as the No:2 drink for Coca-Cola Company in India. We need to see more such intelligent campaigns in the Indian media.

With the summer round the corner, the market for the Non Alcoholic Beverages is witnessing a lot of skirmish. In this month’s Cover Story we look at three such beverages and how the landscape is evolving with newer players coming in and lots of newer drinks in the pipeline for launch.

In this month’s Vartalaap section, we have Mrs. Priya Raghubir, Professor of Marketing at Stern Business School New York University. She gives us great insights into Consumer Psychology, aspects of pricing and her experiences from being a student at IIM Ahmedabad to a Professor at a premier Business school.

I would like to place my gratitude on record for the outgoing team who have done an outstanding job with the magazine. I along with all the members of the incoming team would endeavour our best to live upto the high standards already set for Markathon. This magazine is a collaborative effort involving all the excellent team members. I thank each and everyone one of them for the part they play in bringing the issue out.

Happy Reading! J

Jitesh Pradeep Patel

Markathon February 2011

Dear Readers,

The World Cup fever is up and running, now that slowly and steadily we are moving towards the business end of it. The minnows, if I may call them that with due respect, have as expected caused a few upsets. But as far as I am concerned the match that has been the ONE of this world cup so far has been the tie between India & England. No doubt the match in itself was a roller coaster ride, but what has left An indelible mark in my mind and many others’ too post that match was the suspense breaking launch of Vodafone’s Super ZooZoos. To denote the huge shift in technology from 2G to 3G, ZooZoos have become Super ZooZoos to communicate Faster, Smarter and Better services with Vodafone 3G.

To launch the ZooZoos this time around, Vodafone have taken a different approach. It launched four teasers almost a week before to create a buzz for the upcoming ZooZoos. The teasers left people guessing what Vodafone is supposed to announce this time. The telecom giant had used all the mediums for a week long teaser campaign. Vodafone even had an exclusive tie-up with NDTV Group to present the teasers in the form of Breaking News Alert.

The inspiration for Super Zoozoo, apparently is that it’s like ‘Superman meets Rajinikanth’ – Rajinikanth style with Superman’s powers. It’s all the clichés of superhero films – like using the eyes as a laser and so on.

Vodafone, have a got a hands down winner in their stables, yet again! J

In this month’s Cover Story, we look at and analyse the Private Labels that are rising from strength to strength and giving the established players a run for their money. We were prompted to look at the strength of the Private Labels after the recent spat between some of the retail chains and Reckitt Benckiser. The retails chains countered the announcement of margins being cut by stocking their own labels replacing some of Reckitt’s products. We analyse what makes the labels click and why brands are increasingly concerned about the labels.

In this month’s Vartalaap we have Mr. Douglas Holt, who talks to us about Branding in the Socio-Cultural context. Mr Holt, who is currently Professor of Marketing at Said Business School, Oxford University has authored a couple of books on Cultural Branding and gives us valuable insights on how cultural issues are necessary to keep a brand ticking.

We also have a special feature talk with Mr. Seth Godin, one of the most renowned marketers in present day marketing. He shares with us some wonderful insights ranging from his favourite book, his idea for Permission Marketing in India, his views on the world of blogging and much more.

Moving on, it has been exactly a year since I took over as the Editor from my illustrious seniors and these past twelve months have been nothing short of an exhilarating roller coaster ride. In this period I have interacted with a number of corporates & academia, written and read a number of articles from some of the best minds in the country and also interacted with them. All this has taught me innumerable valuable lessons which would stand me in good stead no matter where I go.

Coming out with a monthly magazine is by no means an easy task, and to have done this month after month, without fail, is solely because of the team I had that was backing me up, behind the scenes.
This bunch of marketing enthusiasts has shown me what Markathon meant to them, by the sheer effort and passion they have displayed. I am forever indebted to my editorial team including Debanjana Sinha, Samita Srijaya Patnaik, Samrat Singh Yadav, Saurabh Kumar Sinha & Varshik Nimmagadda.
I would like to place on record my gratitude to two of the most patient souls I have worked with, my designers, Keshav Sahani & Priyanka Pandit, without whom Markathon would not be complete.

I would also like to thank the faculty, especially Prof. D.K.Agrawal and the administration for their unwavering support through thick and thin.

Last but not the least me and my team would like to express our sincere gratitude to YOU, our readers and contributors without whom this dream called Markathon wouldn’t have turned into reality.

Now it is time for us to pass on the baton to our juniors who we believe will continue to strive and give you the best in marketing and ensure that Markathon becomes an iconic brand.

It gives me great pleasure to announce that Jitesh Pradeep Patel would be the next Editor, Markathon, supported by his able colleagues, Gaurav, Kaustubh, Rahul, Ritika, Sana, Sria & Yashwanth.

We hope that you continue to shower your love and blessings on them as much as you did on us and more J.

Signing off for one last time on behalf of the entire Markathon team J

Happy Reading.

Goodbye! J
Love & Regards
Kaushik

Markathon January 2011

Dear Readers,

As I write this editorial the screaming headline that caught my attention was the entry of the iPads in India. This gadget has earned the title as the fastest selling gadget ever. Within a year of its launch, it has sold nearly 15 million units, earning close to $10 billion in revenue. It was first launched exactly a year ago in the US on the 27^th of January, 2010 and was up for grabs since April 2010. Considering the launch in India has been pretty delayed, also taking into account that it was launched in Hong Kong & Singapore in July 2010.

Now why am I talking about the iPad in a marketing magazine? Yes, the brand Apple in itself is a case study in itself for budding marketers. But here am talking about the effect that the iPad/tablets as a product category can have. It has the ability to change the face of marketing. I will tell you why. Just the game changing nature of the product is mind boggling. Industries as varied as entertainment, media, gaming, business solutions are waiting to see the long term effect of iPad per se and tablets in general with bated breath. An entire ecosystem is getting created around the iPad. Applications for Apple products are a flourishing industry. Most apps available will go pay sometime in the future, creating a new stream of revenues for content producers. Mobile advertising that has been an enigma to advertisers since time immemorial due to the small size of phone screens can now come of age owing to the larger screen size of tablets. For advertisers whose primary complain is their inability to reach out to an increasingly fragmented market, tablets will offer a new opportunity of creating targeted messages for a well defined TG. The introduction of iPad and other tablets sure is going to ensure exciting times ahead for marketers.

In this month’s Cover Story we have decided to look upon the most popular newsmakers in the world of marketing.The top stories that captured the audience of the consumers, the latest innovations that caught the eyes of advertisers, brand turnarounds, new ideas employed by FMCGs to get closer to the consumer and much more.

In Vartalaap, we have Ms. Anjana Vivek, the founder of VentureBean Consulting, a venture consulting firm and a Guest Faculty at IIM Bangalore. She shares her thoughts on the Venture Capital industry in India and the changes that have occurred over time, what are the factors that are considered while funding a new venture and the importance of marketing in the success of a start-up.

Hope you like the issue as ever before and looking forward to your precious feedback as always. Signing off and wishing you a happy and prosperous new year once again on behalf of the entire Markathon team.

Happy Reading!

Kaushik Subramanian

Airtel Rebranding: Will it bring Airtel closer to what it desires

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Krishna Kumar | KJ Somaiya

Airtel Rebranding: Will it bring Airtel closer to what it desires?

Airtel is one of the Indian MNC’s that has made it big in the global arena, thereby becoming the world’s fifth largest telecom operator, catering to around 200 million customers across 19 countries. The Rebranding has elevated the brand Airtel to the “Global Player” league. It provides Airtel a much needed instant and uniform recognition across the diverse international markets in which it operates.

The change in the brand identity is very essential as Airtel is no longer restricted to the voice-based services alone. It is all set to create new milestones in the application based services also, with the introduction of the 3G services. This transformation of the brand of Airtel needs to be emphasized to its growing customer base. The rebranding has infused a lot of youthful energy into the brand Airtel that has been in the maturity stage of the Product Life Cycle for quite some time and would connect well with the young Indian market.

This new avatar would bolster the emotional connect that Airtel shares with its loyal customers, while also exciting new customers since it has conveyed its willingness to face the challenges of the ever changing telecom market. Statistics reveal that facing challenges and emerging victorious is nothing new to this Indian warrior. Airtel is fully equipped to re-write its success story once again, this time with an all new brand outlook. Go Airtel, Go!!

Counter View

Sukesh Gain | FMS, Delhi

Airtel Rebranding: Will it bring Airtel closer to what it desires

In 1995 Airtel was launched with a very distinctive logo and popular brand-tone composed by A. R. Rehman. For Airtel, the former logo was a simple, innovative and refreshing symbol. Currently Airtel is offering services in 19 countries. With this increasingly global identity, it has become necessary for Airtel to build a monolithic brand name across all markets. Airtel has embarked on this ambitious journey of consolidating its brand through its specially crafted new logo and repositioning exercise.

Numerous critiques have indicated the new logo as a refined version of Zain Africa's logo however the more pertinent question is whether Airtel will be able to achieve its goal of global positioning. Is it worth spending Rs 300 cr on repositioning rather than improving its customers service and infrastructure? The current logo could also confuse the customer, given its semblance to new Videocon, Vodafone and Zain Africa's logo. On the other hand, the evolved logo brings with it an international appeal. The new signature tune, being a balanced medley of both Indian & African cultures, plays the dual function of retaining the warmth & sensitivity of the older tune while simultaneously addressing a larger panorama of global customers. The lowercase of the logo signifies humility with the font showcasing a dynamic force of “unparalleled energy” while the red colour signifies heritage, energy and passion.

The new commercial with new faces, new tune, new logo tries to portray new services Airtel is ready to offer. “Dil jo chahe paas laye !!” The emotionally rich new campaigns ‘Street Performer’ and ‘Endless Goodbye’ give rise to the idea of a new brand in a beautiful manner. On the other hand these new commercials and posters featuring foreign models and foreign locales could possibly loose its connection with Indian customers.

In either case, it is too early to comment whether the re-branding efforts by Airtel is timely or not. It continues to remain a testing time for Airtel.

Uncharted Territories

Jitesh Patel, Rahul Mantri, Ritika Nagar | IIM S

Uncharted Territories

Automakers in India exploring the road less traveled…

Behold the turtle; he makes progress only when he sticks his neck out. (Bruce Levin)

For the turtle, sticking his neck out is essential to move forward. The automobile companies in India are doing just that – sticking their neck out. India is poised to become one of the largest automobile markets in the world and to succeed in India, companies are entering uncharted territories. Territories which they have shied away from until now. Tata made the cheapest car in the world keeping in mind the Indian customer and the world took notice. Now, Toyota has, for the first time come out with a small car, the Etios which has been designed completely based on the needs of the Indian market. Maruti is coming out with Kizashi; a D-segment car which is a first for Maruti Suzuki . Tata Motors is aiming to create a new segment altogether with the launch of its car Aria deemed to be India’s first crossover car. We take a look at the reasons for these business decisions, the strategies being employed for their success and also on how the market might react to these offerings.

The Toyota Etios – Toyota’s first “Indian” car

The Etios has been in development for 4 years, employing over 2000 engineers from Toyota’s Indian and Japanese operations. The Japanese major is investing Rs.3200 crores to set up its manufacturing facility in Bangalore. It has been designed keeping in mind the minute preferences of the Indian consumers. Toyota says it is the first and last ever low cost sedan coming out of their stable. Etios was recently launched with much fanfare (A.R.Rahman was there for the launch) and has been priced in the range of 4.96 lakhs to 6.84 lakhs.

The Etios was born out of the need to compete in the very lucrative and high growth compact car market in India. Toyota is something of a non-entity in the emerging markets in terms of market share volumes and with Etios it wants to change that. A small car is essential to gain foothold in the rapidly developing countries. Toyota believes that entering the right segment with a car such as the Etios will be a winning proposition for them in the long run. Toyota’s usual plan of action has been to design cars for the developed world and then sell watered down versions of the same car to the developing nations. This attitude restricted its scope of expansion in the emerging economies. Etios is a car that has been designed solely for the Indian context and it will be launched in other developing nations as well.

The tagline for the Etios is “World First. India First.” which emphasises Toyota bringing its world class quality and engineering skills to meet the demands of the Indian people. The promotional campaign stresses that the Etios is in a class of its own and has no competitor as such. Toyota did a road show of 25 cities to reach into a wider market in India; it currently has presence only in 15% of the Indian market. The market penetration is essential for Toyota since it currently has costlier cars which are largely based in the metros and Tier-I cities. To ensure Etios is successful, the expansion is necessary and rapid growth plans for its distribution chain are in the pipeline. Toyota expects to have 150 dealerships by the end of this year and deliveries for the Etios will start in January 2011. In addition to this, A.R.Rahman has been signed on as the brand ambassador for the Etios.

Competitors are wary of the effect of Toyota jumping onto the bandwagon and starting to manufacture cars at a lower price point. Toyota is known for its world class quality and also has the reputation of redefining the marketplace with its stringent cost and quality measures. The competitors for Toyota Etios would be Indigo Manza, Ford Figo, Hyundai i20 and the Swift Dzire which all lie at similar price points to the Etios. The Etios promises to offer more on the features and performance front but Toyota lacks in terms of the on ground support. Its competitors Maruti Suzuki, Tata Motors and Hyundai have a far more widespread presence and this will be an uphill climb for Toyota to achieve its ambitious goals for the Etios.

The Etios is almost like a make-or-break car for Toyota. The company believes that the Etios will carry forth Toyota through the 21^st Century, just as the Corolla carried them through the 20^th century. Such a statement, coming from the World’s largest automobile manufacturer shows how bold and significant this move is for Toyota. The start has been bright; Etios has already received over 8000 bookings in the first week after its launch was announced. The plans are to sell 70,000 cars in the first year. This seems to be an ambitious but nevertheless achievable figure with the amount of effort Toyota has put into the Etios. Toyota has stuck its neck out, only time will tell whether it was the right move and whether this will help spur Toyota’s forays into uncharted territories.

Kizashi – Maruti Suzuki’s foray into the Luxury car segment

Maruti Suzuki is the market leader in the A2 and A3 segments with a market share of 53.3% in A2 and 42.7% in A3 segment. It is currently exiting the A1 segment by phasing out its 800 model. It wants to become a company which is capable of satisfying the needs of customers across segments (Full market coverage, segment by segment invasion plan). The next logical step that could be taken to achieve this objective was to enter into the A4 segment. Although breaking into this segment may take time but with the high growth rates expected in this segment it is an opportunity that should not be wasted. The A4 segment is expected to grow annually at the rate of 30% per year for the next 5 years.

So, Maruti the name synonymous with “the best service and value for money” is planning to add another feather to its crown with its launch of Maruti Kizashi in 2011. Maruti Kizashi is a mid-size sporty looking sedan. Maruti has lots of cars in small car segment starting from Maruti 800, Maruti Alto, Maruti Wagon R, Maruti A-Star, Estilo and Maruti Ritz. But there was a vacant space for a luxury sedan in D-Segment which will be soon filled by stunningly beautiful and elegant car Kizashi. The issues which crops up is with respect to the brand Maruti Suzuki which is perceived as low cost and value for money. Moreover Maruti has to compete with D-segment giants and gain market share. Pricing and proper positioning of the car will be a challenge for the success of this new project. The promotional activities and defending the market share by MNC leaders in the segment are other major issues.

The competitor cars are priced between 10-15 lakhs with various models. However Kizashi is being launched as a sport model car (price range Rs 10-12 lakhs). Its UVP is its design and style. An advantage on power of 2000CC is also there (with compromise on mileage which does not affect this segment much). It has also more room compared to competitor products and Maruti has a better distribution system and aftersales service adding to its competitive edge.

In this segment both Maruti and Honda have decided not to go for a full on frontal attack. Their strategy has been such that they have emphasised that the Civic is youthful, while the Kizashi is mature. The Civic is sharp and designed to look quick and fast, while the Kizashi is rounded and has a majestic of bearing while on the move. The Civic breaks new ground when it comes to sedan design, while the Kizashi improves upon what already works. Kizashi can steal Civic’s market share in this market, by emphasising on these aspects.

Kizashi was earlier released in USA and Japan in 2009 but it was unable to make any significant impact in the US market and sales figures were not encouraging In India, Maruti Suzuki known for its low priced cars which have helped it establish a stronghold in the automobile market .The Kizashi is a sign of diversification and Maruti aims to be the market leader in this segment as well. The growth plans are sanguine and the result of Kizashi will decide Maruti Suzuki’s fate outside the small car segment.

Tata Aria – India’s first Crossover

Recklessness meets caution, contemporary meets the classic, the first Indian crossover TATA Aria hasn’t even hit the road and it has already created a buzz on various media channels. It is the company’s most expensive offering till date between Rs13 lakh and Rs16 lakh. Targeting the niche the Tata Motors has again not only developed a truly revolutionary product but also surprised people with the right and unique marketing campaign.

Although the issues in the launch of Aria are manifold like lack of awareness in the Indian market about crossovers, the brand itself and being first of its kind. But using the integrated marketing channel Tata has adopted a planned strategy to position Aria into the Indian market. Aria has been packed with lots of features which are supposedly to compete with those of the Innova and Xylo. Aria sports a 2.2 litre common rail diesel engine and blends the functionality and comfort of a mid-range MPV with the all-terrain assurance and premiumness of an SUV. In terms of features it has 6 air bags for safety as well as an Electronic stability program offered first time by an Indian manufacturer.

To overcome all issues related to Aria, Tata is driving the most ambitious marketing strategy. Tata starting with online campaign which will be followed by viral marketing will try to create curiosity in the customer about the crossovers and Aria in particular. Through a LIVE webcasting channel, thousands of automobile lovers across the world bore witness to the unveiling of a new breed in vehicles. Tata recently launched a website called the BuildDreamCar.com which allows users to create a user or connect via Facebook. Then a participant can create a car step by step in various levels, which is also kind of fun if you are into cars. Apart from their online presence with “LIVE” and Build a Dream Car” they have also showcased the prototype in Geneva Auto Expo and Delhi Auto Expo.

The planning for Aria started 5 years before the launch. They formed a focus group including owners of Sedan, SUVs and MUVs and gathered all their problems related to these existing products and after all that they tried to implement most of the features in Aria. A small example is of ground clearance for Indian women in saris. This speaks a lot about the positioning strategy of Tata.

The Tata Aria aims to create a new market segment for itself and hence has its task cut out. The aggressive promotion strategy is essential when aiming to create a buzz for the growth of a product such as the Aria. Tata has tried something like this before, with the Tata Xenon which was a lifestyle pickup truck and it failed to take off. This time Tata is treading more carefully to ensure that Aria captures the market share it deserves.

These cases show that the automobile companies in India are experimenting and experimenting big to find the right way to tap the growing opportunities. Companies are no longer satisfied with sticking to the beaten path; new paths are being treaded upon in the hopes of making tremendous progress. This bodes well for the consumer; he now has more choice and has better products awaiting him. As for the companies, it will be a while before their success or failure becomes clear. Some experiments will bring in the desired results, some will not, but one thing is sure the experiments will continue.

Captive Audience Networks

Kumudini Manda & Krishnakant Jonnalagadda | NMIMS

Captive Audience Networks

Catching the ephemeral attention!!!

Rita was telling her friends in a kitty party about the new spa that has opened up in an area in Mumbai. She went on to the extent of telling them the packages available, the timings and other branches of the spa. Ask her how she came to know about the new spa, and out came the answer, ‘at my dentist’s office’.

Everybody in the room was bowled over by the answer and all the ladies surrounded Rita to know her story from which came the revelation of Rita spotting not only the new spa but also the offers in a supermarket close by and the investment options in the bank across the street. Rita was witness to the entire show on a single screen at the dentist while waiting her turn to see the dentist and get her root canal done. And thus the likes of Rita are increasingly becoming spectators to the concept of Captive Audience Networks (CAN).

The new ‘CAN’oe of modern marketing

It is one of the fastest picking up trends in the marketing arena. The real beauty of the medium lies in the gamut of players who can throw their hat in the arena. So, it shouldn’t be surprising if we see Costa Coffee letting people know its newest menu, HCL announcing new hires, Asian Heart Institute showing off its latest infrastructure or AXA insurance giving tips on investments one after the other. Seeing this great potential, no one is staying behind in exploiting the latest proposition to market themselves.

With the advent of cable, viewers were spread thinner across more stations and they would skip commercials altogether. Add on the burgeoning trend of outgoing population in urban areas. Thus, Television Advertising may not necessarily suffice. One of the reasons for this can be the fact that with tooth sweating competition in every sector, creating a strong “pull” strategy only via television is a difficult proposition. The trend of Out of Home digital media is a product of this vacuum. It facilitates a much stronger recall which helps to lead the customer to the Point of Purchase. The idea of “place-based” media networks is highly compelling to advertisers – because a network could deliver a captive audience such as at a doctor’s office or auto repair facility, mall, hotels etc.

Captive Audience Network, or more aptly the out of home media is catching up fast with marketers who find it a combination of two things that make it a great deal. One is the power of television, the other is the increasing need to be targeted in your communication spend.

Out of Home Media is increasingly being looked at as a premium medium which reaches out to the 'difficult-to-reach' and SEC A consumers wherever they are, thus offering the advertiser an all day primetime.

In fact, the service providers claim that what they provide is an opportunity for advertiser brands and intelligent consumers to come together in an environment where there is a common interest. It could include anything from product placement, sponsorship of editorial items and the chance for advertisers to provide an expert spokesperson to contribute to one of the editorial items.

CAN, as it is more often called, was found to enhance the image of participating retailers and the mall in consumers' minds and there was a general consensus that it created a sense of modernity. It has also brought the brand to life by creating a platform for not only advertising but also generating a need to educate. It has gone beyond the traditional boundaries of spot advertising and works with the agency and client to come up with innovative ways

The Current ‘CAN’vas

There are plenty of territories that are already being conquered, in railway stations and airports, gyms, cinemas, hospitals, hotels and conference centres. There are largely unexplored, markets in schools and universities, in libraries and museums, military bases, police stations, historic attractions and amusement parks and many more.

With a varied user base, where one size cannot fit all, there is scope for a much wider range of solutions and approaches. There is room for everyone from the vendor of tiny shelf-edge displays for the supermarket to the supplier of huge video walls at football grounds, from the producer of five-minute mini-documentaries to the designer of static digital posters. It is a highly cost effective medium to implement as the entire package of software, hardware installation and running costs are covered within a sum of the range 1.5-3 lakhs.

As mentioned above, the main appeal of a CAN is that it enables retailers to target shoppers close to the point of purchase, where the buying decision can be influenced. It also offers a potential additional revenue stream, with the mall's retail tenants providing a ready-made pool of potential advertisers. A newspaper or radio or TV, needs some sort of customer involvement. With CAN ads, all they have to do is walk in and they are involved.

The Rising ‘CAN’didates

The world of marketing has a pace and the slick style of change which can put even the Alfred Hitchcock books to extreme anxiety. Any new trend that germinates sees multiple gardeners watering the seeds to reap the best fruits. Captive Audience Networks’ potential is widely recognized and accepted. WalMart’s revenue figures of over a $100 million based on leveraging this medium is a strong enough indicator to show its potential. The Indian CAN market is still in its salad days. Few of the main players, who are ready with their forks, if not daggers, are:

Live Media:

One of the heavyweights of CAN in India is Live Media. With an expansive network covering over 300 Quick Service Restaurants, 300 BPO’s, 100 Corporate Offices, 200 Hospitals, 40 Rural Retail hubs, live media has certainly been able to hold its own. It has been able to rope in outlet locations in the form of esteemed clients like McDonalds, Dominos, DLF Diners, Convergys, Genpact, Fortis Healthworld, ITC Choupal, Hariyali etc. This wide spectrum of outlets gives them a huge footfall which in turn is a lucrative proposition to drive in more advertisers.

It claims to hold a special positioning because of its ability to undergo the installation process after extensive research so that the consumer psychographics and the location’s local flavour, both are amalgamated. This ensures that the issue of visibility is successful and simultaneously does not come across as the fifth wheel in the ambience of the outlet. This customised approach is one of their strong footholds over the competitors. With a range of around 13 in-house branded programs, Live Media intends to provide wholesome entertainment to the audience, apart from a platform of advertising. This, they believe, is necessary because the idea is to make the taxing phase of wait more pleasant and captivate the attention of the viewers for that period. The attention span varies from outlet to outlet as well. One can expect a more attentive viewer at a dentist’s waiting room than at a retail outlet. Thus, it is important to ensure that the programs are ably customized and not too elaborate in the manner of expression.

Ooh Media:

Another bellwether in this segment, Ooh Media, spans across a whopping 18 cities with more than 4500 screens and accessibility to over 70 million people in a month. They cater to

. (Photo courtesy: Ooh official website)

more than 300 clients belonging to sectors of Telecom, FMCG, Consumer Durables, Media & Entertainment, Travel & Tourism etc. They believe their USP lies in providing ‘flexicasting’, a tool they use to telecast the brand communication message varying according to the local flavour of the market. This interesting phenomenon of local market, gives them an edge over the competitors as local marketing is a strong order of the day and flexicasting is a brilliant medium to tap this aspect. The adjacent Wheel sums up their entire model lucidly.

Ooh media takes immense pride in the fact that their customer base has a non pareil appeal to it. Their customers are the opinion leaders, decision makers and wealth creators. Such customers have a major role to play in expanding the purview of Word of Mouth Publicity.

Apart from these two major players, there are other emerging players like Digital Signage Network, TAG Media, Laqshya Digital media, Nec India etc. whose foray into this segment has made the battleground extremely hot for the marketers.

‘CAN’ they or ‘CAN’t they??

So is this buzz about CAN for real or is it just another passé trend that would die down even before it can breathe in completely? When it comes to the CAN sector, expanding the user base can only be a good thing for the sector. It grows the market for screen-media products and services in terms of sheer size and also reduces the sector's vulnerability to changing fortunes, or business models, or marketing philosophies among its customers.

Statistics clearly indicate that this trend is here to stay. A nationwide survey conducted by Ooh Media in association with research firm Neilsen, revealed interesting results that the screens had a recall value of over 70% and 90% people recalled the ads they saw on those screens. A city like Mumbai enjoys a weekly traffic count of around 25 lakhs, which is a very strong number for any marketer to cater to. Thus, neglecting this rising segment would be like living in a fool’s paradise. There are a few challenges that this network offers which has to be taken into consideration-

The Return of the Silence Era

“Alam Ara” marks its recognition as the first talking movie of Hindi Cinema. The silence was finally broken and the celluloid burst out with dialogues and the power of sound. But the wheel seems to have taken a reverse turn and now we see ourselves standing on the same pavement again. Be it Tom & Jerry or blockbusters like Wall-E, silent media has always been an intriguing medium to explore. In the era of talking ads in Print media, we welcome you to the world of Silent Ads. CAN has recreated this new paradigm of advertising. So many times when we drop in at a coffee place or a pizza joint, we see the silent ads on this digital media, which goes down well because it is not intrusive at all, but still grabs eye balls because of the interesting graphics.

This smart ploy is a challenge for both the marketers as well as the creative intelligentsia of the advertising agencies. After all, every opportunity comes with an asterisk.

The ‘Yin-Yang’ leads to the Big Bang

With CAN, a marketer can find no limit to his creativity. One of the most ground breaking ways to arrest a customer’s attention was in using a woman's voice in the men's room and vice versa. There are many brands that prefer this medium of advertising in restrooms as with its getting noticed much more, it also helps you target on gender basis. It can also be applied in the in-house stores wherein the offers about men’s segment are displayed in the women’s section and vice versa. This leads to a better probability for the customer to hit the other end of the store, which might otherwise be conveniently ignored.

This innovative idea and tackling the challenges should ensure that the canvas of CAN has flying colours to boast of.

The ‘CAN’oe’s future

The future looks bright and sunny for this media to grow, subject to condition the medium stays flexible and fluid rather than succumbing to stagnation. It should not fall prey to complacency seeing the current trend reports. It needs to come up with innovative ways to make the product in sync with the changing times. Few possible ways of doing this can be

- They need to make the medium more interactive. With the growing trend of Wi-Fi availability in the outlets that CAN targets, a more interactive setup would attract more attention.

- Although it is primarily an Out of home phenomenon, a rational expansion would be to tap the DTH market. They should come across as a Value Added Service for a DTH provider. Their functionality would be a one stop junction for all local advertisements, event promotions etc.

- The Rural markets can provide great impetus to this service. The companies can use this medium to promote their BTL activities, setup kiosks with 24*7 telecast of the benefits of the service the companies offer rather than brazen selling.

It is important to keep this model fresh and rejuvenate it with the changing times. The reason is that it is a medium which is catering to the attention span of the people on the move. Thus, the execution has to be highly precise.

“The greatest enemy of a good plan is the dream of a perfect plan”, said Carl Von Clausewitz. Nothing can be closer to truth than this. It is important to understand that every new medium would meet resistance and would take time to gel with the status quo. At the end of the day, it is the people who drive the market. If you know your customers, you know that the cash sitting in the bank would have a visit from their relatives soon.

Generation Z-consumers of tomorrow

Shekhar Gupta, parthdamor | sjmsom, iit Bombay

Generation Z – Consumers of Tomorrow

What is the first thing that would strike our mind as soon as we listen to the word ‘Marketing’ that has become the buzz of today’s business world? Philip Kotler? 4 P’s of Marketing? Brand? Or most probably ‘Consumer’? Have we ever tried to think beyond the existing or the apparent? Have we ever conceptualized our thinking to look into a world of marketing that is going to be in the near future? The world is changing very fast and this volatile nature of the market and consumer is leading the marketers to plan their branding strategies that would make the right fit into the world we are expected to be exposed to in the recent future. This idea of looking into the future marketing scenario needs to study the ones who are going to be the Consumers of Tomorrow – ‘Generation - Z’.

What is Generation – Z?

“They do ‘Nintendo’, they utter on ‘Twitter’ and the only “Face” they book is when they come visible on “Facebook” unless they find it obligatory to do so. Nevertheless, they do lots of e-read, e-mail, e-file, e-fax, cloud and surf. They may not have a wristwatch but they would have a smartphone to see the time.”

Generation – Z refers to the ‘people who are born between the mid 1990s and 2010’ and are popularly known as ‘Digital Natives’ or ‘Net Generation’ or ‘iGeneration’. We focus our attention towards the Generation Z. One of the main differences between Generation Y and Generation Z is that Gen Y’ers remember life before the proliferation of mass technology, while Gen Z’ers are born with full mass technology already in existence .This makes them both comfortable and dependent on technology such as communication tools, internet cell phones, MP3 players, I-pods undeniably. Generation Z are the forerunners of Generation Alpha, those to be born in the decade of 2010 and are very much in line with the digital future. Today, the Generation Z makes up for nearly 18 percent of the world’s population which is a large pool of consumers to be considered by marketers for the coming tomorrow.

What makes Generation – Z different?

Each Generation is characterised by different experiences that make & shape their perspective. Though the types of influences that shape each Generation are similar in many ways, the characteristics and qualities of the Generation Z are completely different from the others which can be analysed on the following points:

Online – Generation: The internet has experienced a phenomenal growth and development - in terms of penetration, technology, applications and adoption during Generation – Z. A research shows that 91% of this group is active online and have developed very different communication styles and preferences to their parents. Due to the huge influence digital technology has had in their short lives, these children have experienced radically different childhood experiences than other generations had. The figure below shows some developments that played a crucial role in shaping their perspective towards technology.

Advancement & Speed of Technology: Every Generation has seen the emergence of a ‘disruptive’ technology that rendered the then existing technologies irrelevant. Now, the time span between the emergences of new technologies has reduced and ‘innovation leaps’ are increasingly becoming smaller. The new technologies continue to emerge faster than ever leading to a stronger ‘connection’ between newer Generations.

Increasing overlap between Generations: The connections between the generations are becoming stronger which leads to the shorter span of technological innovations. The increasing overlap between the generations is mainly due to the ever-increasing pace of technological development and advancement in digital media and communication tools.

Relationship with parents: Generation Z experiences a tighter connection with their parents on a number of dimensions. Generation X is raising Generation Z with a high involvement parenting style. Some of the illustrations which show it are:

a. Common Technology: Generation Z has grown up with the technologies that their parents have always been using and feel very comfortable with such as mobile phones, laptops, video games, online networks, etc

b. Brand Experiences: Generation Z and their parents are developing an affinity for and purchasing the same brands.

c. Taste Commonality: They share their taste of recreation, entertainment, hanging around with their parents e.g. they watch the same entertainment channels that their parents watch. Many gaming companies are catering to family gaming segment.

d. Family Values & Ethics: Generation X saw a social trend of divorces and thus, is expected to instil stronger family values, along with old notions such as work ethics, etiquette and resilience. This, along with a better education, will help Generation Z become more tolerant, respectful, and responsible.

What makes Generation-Z lucrative to marketers?

Long gone are the days when marketers used to rely on a captive audience. The ownership of the communications is increasing getting shifted from the provider to the customers. Today’s teenagers do not respond to marketing in the same way as previous Generations. In the five years this Generation Z will be working, earning and consuming. Understanding the different behaviours, interests and preferences of this group can help marketers to craft their strategies. The following points present a complete and clear picture of the traits of the Generation – Z kids and the marketing implications which they provide to the marketers:

Web presence: Generation Z spends maximum of their time online and has a strong preference for the interactive media. And, social networks play an important role in making a strong influence on the consumer decision. According to a global survey of children, 50% of all tweens (8–12years) globally are online daily and 25% interact daily with peers in other countries. To effectively market to Generation Z, companies will need to have a strong presence online: Profiles on networking portals, Virtual world based marketing, detailed product information and the ability to easily make purchases.

Awareness & Education: Generation Z has a wide exposure to large and varied information sources and activities which is expected to make them smarter, flexible, and more responsible. Today’s kids are very knowledgeable and are able to understand and relate the various aspects of a problem because of the increased exposure and bend towards conceptualized learning and thinking. For instance, 75% of teenagers consider global warming to be ‘a serious concern’ and rate it even higher threatening than drugs, violence or war. A more informed and smarter Generation Z is expected to evaluate product in terms of their attributes, utility, brand name, trends etc. Companies will need to take a proactive stance toward the environment as they market to Generation Z and should look towards providing green products/ services.

Orientation towards technology: As an advantage of having been born in a digital world, Generation Z is proficient with and largely dependent upon technology. They are living in a real time environment which is the result of increase in comfort and dependence on electronic gadgets and this will lead them to make early purchases and increase demand for such products. Companies will need to adopt real time marketing techniques and turn towards sales channels such as text messages, mobile marketing, internet marketing, and online interactive media portals which offer gaming applications and video/music downloads.

Value Oriented: The privilege of being brought up by Generation – X has made Generation Z conservative financially, though they are materially comfortable. They are surrounded with the competitive markets full of variety and diversity and they look out for the products and services which provide the maximum value-for-money. Today’s marketers need to market their products cautiously. A guarded spending might reduce the credit card culture which is prevalent in Generation Y and could lead to decreased affinity for loans and other borrowing schemes.

The Road Ahead

Generation Z will be leading the world in a couple of decades from now. The generation of entitlement is going to continue to grow, so from a marketing perspective, it’s very important to be prepared to speak to youngsters in the right way as this generation is keen, mobile and digitally wired in toto. They prefer sending a text than talk. They tend to see social media as ‘the norm’ and ‘socializing’ is necessarily about hanging out with friends, shopping, (or sometimes even leaving chair for that). And that is why, they are able to incapacitate a brand, kill a campaign, and demolish the bottom line of a company by starting an insurrection quicker than we thought with the help of few status updates on Facebook or Twitter. This active group will be less interested in hybrid marketing – where an online presence merely improves an offline business.

Generation Z believe in the concept of self-branders. They’re not easily impressed with old marketing tactics because they realize that there is a new way that is more effective: viral marketing. This is most important prediction since it can affect widely. As advertisers look to find a way to explore media spaces, such as the 30 second spots, banner placements, etc., Generation Z will continue to find ways to access the information quickly. They tend to be impatient and expect instant results as information is available freely and fast. The Generation Z are not good listeners and lack interpersonal skills. So when it comes to work, in future they may barely be seen in an office communicating with their colleagues but might live their life in the virtual world.

Beyond 2025, there could be drastic changes in the work culture, ethics and values that will be set forth by the Generation Z. This doesn’t signify that traditional marketing will disappear, but there is a need to shift the paradigm to online media with the attributes and quick response characteristics that they demand. Marketers who are accustomed to traditional marketing models should start preparing for future marketing trends now.

The early adopters will enjoy the rewards of the new consumers when they come of age in next decade. Many companies have already started taking steps to target these young consumers. E.g. McDonald’s mobile marketing campaign to launch McFlurry or Nike’s Personalization service, NIKEiD, allowing customers to design their own shoes. Virtual world marketing (e.g. Avatar marketing) is a new tool what modern marketers are looking for.

The moral of the story is Marketers will need to be more convincing in creativity to engage the teens in something interactive because they don’t want just engagement, they want to go beyond conversations and they expect more from their brands than ever before. “über teen” is on the rise, and the time is now to implement the most agile, fickle and trickiest to engage generation.

‘You may not be web savvy, but within five years, your business will need to be as savvy as the kids are now’.