MARKATHON

Marketing Magazine of IIM Shillong Volume3 | Issue7

Cover story

Rise of Luxury Cars: An Indian Perspective

An Interview with Mr. Mayank Pareek Executive Director of Maruti Suzuki India Limited Domestic and International Sales

An Interview with Mr Praveen Kopalle Professor of Marketing Tuck school of Business, Dartmouth

January 12

FROM THE EDITOR

Dear Readers, Another recession seems to be around the corner. The mood has been glum for quite some time. Unlike 2008, when the economy around the world seemed set to touch the sky until the bubble burst in September 2008, and there was no stopping how deep the economies fell. This time, the entire world seems prepared for it; it is almost as if everyone has given up, just waiting for the economy to take another downward spiral. The downward trend seems to have begun in a slower manner because of the fear of recession rather than recession itself. The Indian stock markets have had one of the worst years in recent history shedding more than 25% of its worth in the calendar year 2011. The mood of the economy is visible in almost all sectors which have witnessed slower growths compared to a bullish 2010-2011. The airlines industry is in such huge losses that Air India might recover only 20 years later (if everything goes right) and there seems to be Dec 2011 Cover no respite for Kingfisher either. The consumer electronics industry has also seen a sharp downturn and almost all major players have reported lower sales in 2011-2012.The rising crude oil prices, burgeoning inflation and frequent interest rate changes have only added to the worry. The automobile industry has been the worst hit with net profit taking a 64% dip in Q3 compared on a Y-o-Y basis the lowest in almost 4 years. The story is along similar lines for other companies with decreased sales owing to lesser consumer spending. Surprisingly, the Luxury car market seems to be operating in entirely different conditions. Companies selling luxury cars in India, right from the likes of Mercedes, Audi, Jaguar and BMW have never been more upbeat about the Indian consumer. BMW has had a record year of sorts and is set to challenge Mercedes for the top spot for Indias highest selling luxury brand a spot which Mercedes has held for more years than one can remember. Team Markathon has a brilliant analysis of this sector in this months cover story. We bring you detailed insights into the exact reasons behind this trend and also how some of the luxury car companies are making a beeline for India. The cover

story also compares and contrasts the strategies used by the major players in the Indian market. Our Vartalaap for this month has one of the most distinguished names in the world of Automobiles Mr. Mayank Pareek, Executive Director of Maruti Suzuki India Limited who handles the Domestic and International sales for MSIL. He speaks to us at length about the intricacies of marketing in the automobile sector and about Marutis successful brands over the years. We are extremely grateful to Mr.Pareek for taking time out from his schedule to talk to Markathon. From the academia we have Mr.Praveen Kopalle, who is Professor of Marketing at Tuck Business School, Dartmouth. An expert in Pricing and Marketing Analytics, Mr.Kopalle discusses the various trends taking shape in the marketing world with respect to emergent consumers and also about pricing perceptions. We thank Mr.Kopalle for giving Team Markathon this wonderful interview. As always, do send in your feedback/suggestions to markathon.iims@gmail.com. Sit back and enjoy this issue! Happy Reading!

Jitesh Pradeep Patel

THE MARKATHON TEAM

EDITOR Jitesh Pradeep Patel SUB EDITORS Gaurav Ralhan Kaustubh Rawool Rahul Mantri Ritika Nagar Sria Majumdar CREATIVE DESIGNERS Yashwanth Reddy Mandipati Sana Parvez Akhtar MEMBERS G S N Aditya Piyush Agarwal Mayur Jain Sowmya R Swati Nidiganti Umang Kulshreshtha Priya Kumari Agrawal Rushika Sabnis

CONTENTS

markathon | January 2012

FEATURED ARTICLES PERSPECTIVE

Change he believed in Priya Zacharia, Nishita Tibrewala | SPJIMR

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PERSPECTIVE
How far is too far? RUBAYET CHAKRABORTY, AHANA CHAKRABORTY | NITIE (Mumbai)

VARTALAAP MAYANK PAREEK

EXECUTIVE DIRECTOR OF MARUTI SUZUKI INDIA LIMITED

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12 19 22 24 25 26 27 28
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COVER STORY Rise of Luxury Cars: an Indian Perspective

MAYUR | PRIYA| KESHAV IIM S

VARTALAAP PRAVEEN KOPALLE Tuck school of Business, Dartmouth

PERSPECTIVE
Kingdom of Lights: Creativity at its best! ADITI JOSHI | DoMS, IIT Roorkee

WAR ZONE EYE 2 EYE Will 2012 see online retail give real competition to the next door retailer? Nandita Koch|IIFT | Rashmi Agarwal|XIMB SILENT VOICE Rebranding of Nestle Milk as Nestle A+ SPECIALS
GAURAV RALHAN|IIM S

ADDICTED

RADICAL THOUGHTS
JITESH PATEL| IIM S

UPDATES

perspective | Productolysis Perspectives

markathon | august 2012 markathon | january 2011

Change he believed in
Priya Zacharia, Nishita Tibrewala | SPJIMR
For a country that was on the brink of a deep economic depression, a country outraged by the unfair invasion of Iraq, a country where a widespread uproar against its then Presidents inflammatory policies was imminent, Barack Obamas charisma and multi-racial background symbolized the light of hope, the countrys muchneeded change towards creating greater goodwill towards America and easing world tensions. In DDB Worldwides Keith Reinhards words Barack Obama was three things one wanted in a brand: New, different, and attractive. Thats as good as it gets. It is often said that marketing a winning product is a piece of cake. For the designers of Obamas 2008 election-campaign, the task at hand, one would say, was easy when the man with his eloquence and presence had already ignited hope and huge expectations in the masses. But what they did with the campaign is today hailed as a revolution in political campaigning. What John.F.Kennedy did using television during his 1960 election campaign, Obama did with the use of internet. Together with a dedicated team, they exploited the unparalleled power of internet to influence the masses, to reach out to voters, to organize supporters and to promote effective communication. Sensing the undertone of the American people and their desperate need for change, the campaign was positioned accurately on the theme of change and hope. The carefully designed Hope poster and the Obama logo became the most easily recognized symbols of the campaign. The variants of the poster either had Hope, Progress or Change under Obamas image. The logo was designed to symbolize an O above a rising sun indicating a new sense of hope rising over the horizon. Chants of Yes we can change, Change we can believe in and Obamas famous Yes we can speech became so iconic that it inspired Black Eyed Peas, the popular hip-hop group to make a single with the same title. It is said that Obamas candidacy inspired artists to create music and videos more than any other presidential candidates ever did. Obama personally requested Joss Stone, the young English singer to record a song for his campaign. It is said that Stone was a conscious selection due to her multiracial background. The internet campaign was intended to target 18 to 29 year old people, the segment of voters that till then had tended to ignore politicians. Through social media marketing on websites like Facebook and Myspace, Obama built relationships with young voters on a personal note, understanding their needs and concerns. Obama supporters formed nation-wide communities, using online tools to connect and reach out to people. The feeling of being understood and valued for, inspired them to engage in social activities from discussing opinions about Obama and his policies to door-to-door petitioning for support. 4

Perspectives | Productolysis perspective

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Spanish Language Emotional Message in the header Prominent Donate button

Video Comment

Consumer marketing was a highlight of the Obama campaign. Detailed surveys were collected by volunteers and conducted on websites to better understand the interests of the people. Internet tools and applications were made to good use to track how often and when exactly people visited the website. Detailed analysis of data thus collected was made using statistical models to better predict consumer behaviour. Through this they were able to identify the region-wise strength for Obama across the country. All political communication sent out to the viewers was tailored to suit best interests and beliefs of the voters. The Obama website was meticulously designed incorporating tax saving calculators, online donation capabilities that raised millions for the campaign, a detailed description of Obamas plan and stances and online call tools enabling registered users to make calls for the campaign. After making the call, the caller was requested to fill up a form to report the experience. This information was fed into a customer relationship management database to determine where they stood in each state. Various metrics such as cost per acquisition, newsletter signup rate of

website visitors and dollars per pages viewed on the website were used to measure the websites success. To add to it, a well-planned out search engine optimization strategy helped to make the website the most popular websites among all the presidential candidates. Youtube became the platform to upload videos and speeches free of cost! After thorough analysis, they grasped that user preferences had undergone a phenomenal change in the Internet era where people preferred watching videos online, at their own convenient time and as many number of times, rather than by interrupting their favourite television show. The official content for Youtube thus created was watched for more than 14.5 million hours, which would have cost more than $47 million had it been broadcast on TV! The Obama camp reached out even to avid video game lovers by becoming the first presidential campaigners to buy ad space in video games. Ads appeared on signage and billboards within nine Electronic Arts games to remind players to plug a campaign website to vote!

Perspectives | Productolysis perspective iPhone apps launched specifically for the campaign allowed users to receive updates on Obamas positions, browse videos and photos from the campaign, contact voters and find events. Traditional marketing ideas were also used simultaneously. Print ads, billboards, widespread media coverage with popular Hollywood stars publicly lending out support during campaigns, merchandising and sale of merchandise through e-commerce were fundamental to the Obama campaign. Despite meticulous planning and implementation, Obamas journey to success was not devoid of setbacks. Conspiracy theories claimed he was not a natural born citizen of the United States and thereby questioned his eligibility to be the President of the country. Speculations that he is a Muslim and not a Christian added to the reputation attacks. Obamas response to these allegations? www.fightthesmears.org was launched immediately to fight the character assassination attempts by addressing each of them with clarity and assurance. The website stood as a testament to the fact that he was not afraid to change the rules of the game and that any remark thrown against him would be dealt with head-on. The Obama camps brilliantly designed campaign not only enabled him to reach out to all sections of the American society Blackplanet (Afro-American community), Batanga (Hispanic community), Glee (gay and lesbian community), The Great Schlep (Jewish community) or AsianAve (Asian community), but also respond dynamically to every allegation made against him at every stage of the campaign. Add to it Obamas oratory skills, charismatic personality, unrelenting support from his wife, Michelle, having looked upon by the Americans as a fashion icon and one would undoubtedly perceive him to be a born leader; as a beacon of righteousness and the perfect future for America. The result of all the hard-work is today penned down in history books. Americas 44th

markathon | january 2012 markathon | august 2011 President is also the first African-American to hold the office. While his stint as President may not have been as successful as his campaign or even close to the expectations raised by it amongst the American population, one has to wait and watch what strategies are in store for Obamas 2012 presidential campaign. No matter what the outcome of the campaign, one can be assured that this campaign too would surely be elegant, calculated and innovative, raising the standards of presidential campaigns to an all-time high.

perspective specials

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How far is too far?

Rubayet Chakraborty, Ahana Chakraborty | NITIE (Mumbai)
They are probably the best way to wake up the sleeping dead. Such is the latest, quickly catching-up with the west advertisement strategyShockvertisements. They shock you, jolt you out of your senses and make you take notice. It is almost like slapping you hard on your face and telling you that you will remember this slap for a long time. Shockvertisements, or shock (shocking) advertisements are ad campaigns that are intended to generate an instant interest. The ads may or may not bear any resemblance to the product sold. However, the company makes sure that it is not forgotten. For example, the Benetton baby ad campaign- a new born baby with content, bans on liquor promotions and tobacco warnings are the norm of the soil. Condoms are still hidden in a corner of the pharmacy and sanitary napkins are still wrapped in black plastic bags. So, is shockvertisement possible in this land? I will go back a few years. It was the launch of a new brand of shoesTUFF shoes. They used one of the most successful and promising models, Milind Soman along with yet another heartthrob of the times, Madhu. Young boys and girls were supposed to be drawn to the brand ambassadors and the style quotient. However, the brand failed. No one has seen those shoes since. Another notable shock ad of the times was that of MR Coffee. They in fact brought a whole new idea, that of instant coffee, to the consumers. They again used one of the more famous and successful Bollywood couples, Arbaaz Khan and Malaika Arora. A general perception was that the marketing campaign had all the ingredients of being successful. There was just one

mucous and blood and an uncut placenta. What has this picture of the baby got to do with selling sweaters? Nothing. But it ensured a growth in sales, awareness and controversy, especially in Britain. The cultural diversity of the ad campaigns is a bit too much to comment or analyze. So, I will stick to India. India is still known to be conservative and it shows in the buying patterns as well as the selling patterns. Bans on the direct display of sexual ` 7 30

perspective flaw- the ad campaign. The audience was in a state of shock-and-awe. The company had to quit India. Amul is known for its spoof ads. Most of the time, the ads make the people laugh and take notice. However, they once made a mistake. This: Needless to say, the hoardings were taken off rather

markathon | | august 2011 markathon january 2012 quite a successful campaign recently, which was in fact quite gruesome. Dead bodies, organs and bones lying around are not really the ideal images for marketing to kids, teenagers and young adults. But the campaign was a success and has redefined marketing of game consoles. So have the ads of Reetone from Reebok. The audience has taken the ads seriously instead of concentrating on how to make the campaign look vulgar. And the latest example is of course the much talked about Benetton Unhate campaign. Controversial, but powerful. Strong visibility with the least expenditure and software play. In a country with more than umpteen religions, zillion belief systems and gazillion opinions, the best depiction of a dietary/fitness brand should be the line between provocative and offensive. The company needs to decide whether to cross it, tread on it or be safely away from it. No one has any idea about in whose court the ball will lie, once the ads are out. It will really be fascinating to see now, HOW FAR FAR??? IS TOO

quickly. However, as Mr. Dylan once said, The times they are a changing. Today, the country has become more receptive to the shock ads. They have become more sporting, and as some people prefer to put it, more sensible. India has started not only accepting these ads, but also increasing the turnover of the companies in return. Sony Play Station Portable or PSP has had ` 8 30

Vartalaap

markathon | December 2011 markathon | January2012

An Interview with Mr. Mayank Pareek Executive Director of Maruti Suzuki India Limited, Domestic and International Sales

Mr. Mayank Pareek is the Executive Director of Maruti Suzuki India Limited, handling Domestic and International Sales and ensuring brand performance of over 20 Products and Service Brands. Having done his graduation from Institute of Technology, BHU and MBA from Indian Institute of Management, Bangalore he initially headed the Marketing Functions at Maruti Suzuki where he worked on the launch of big brands like Swift, Dzire, Estilo. With an association of more than 20 years with Maruti Suzuki, he is an expert on the intricacies of Marutis business and the Automobile Industry as a whole.

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Vartalaap

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on psychographics which clearly differentiates each brand. While conceptualizing any marketing campaign, the campaign is tested right from the strategy stage, to ascertain that campaign is in sync with the overall strategy on which the brand is positioned. Further on, Mr. Pareek: It is difficult to single out one moment during Ideation, and at storyboard stage, different since the whole stay was eventful. However, Case study campaigns are tested among the TG to select the best methodology followed at IIM prepared me for the real fit campaign for the brand and also which qualifies on life business situation. likability, relevance, newness etc among the TG. Lastly the final Markathon: What is the role of Marketing manager plays a very critical role in an creative is tested a marketing automobile company; the role is to continuously among the clutter of manager in the keep a track of consumer trends, to know the pulse other category Automobile of the consumer, to see whether brands are creatives for feedback sector? Could you on quality of performing as per the expectations and are share with us production, its clutter relevant to our target group. Also, marketers must some of the breaking ability and analyse the changing trends and respond quickly to challenges of delivery of message what consumers want Marketing in elements. this sector? Markathon: Tell us about one incident/moment from your college days at IIM Bangalore that will stay with you forever. How did your education and experiences at IIM Bangalore shape your career? Mr. Pareek: Marketing manager plays a very critical role in an automobile company; the role is to continuously keep a track of consumer trends, to know the pulse of the consumer, to see whether brands are performing as per the expectations and are relevant to our target group. Also, marketers must analyse the changing trends and respond quickly to what consumers want. Marketing manager has to keep the excitement and novelty factor alive in these brands even before TG can think of it. Also he has to work hand in hand with engineering on current as well as future products to serve our consumers and be a first choice of manufacturer. Markathon: Understanding consumer behaviour is crucial for success of any marketing campaign. Could you share the consumer research methodologies that are adopted by Maruti to better understand the target market? Mr. Pareek: For each of our brands, we have defined a unique target group to whom that brand caters to. This target group is based not only on demographics but also Markathon: The Automobile sector has traditionally been one of the key spenders on advertising. What are the other channels of promotion that Maruti is exploring in depth for marketing the vehicles? Mr. Pareek: The Media landscape has been changing very fast and all thanks to technology for this. Another revolution of a kind is happening in digital space and we do a lot of programmes to engage customers online. For example, we made Indias first online serial Maruti Suzuki Iserialstar which won international awards. We are on Facebook, Twitter and other social media platforms along with mobile marketing. Apart from this we also do digital out of home advertising (OOH) as our target group likes to go to shopping malls, restaurants, airports, etc. This gives our brands visibility and high recall. Markathon: Recently, a 13 day labour revolt caused sales to plunge by 25% and led to a USD 90 mn loss of output. In this light, what is the role of public relations in marketing? As a top level manager, how can one deal with such issues- both internally in the organization and in external communications?

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Vartalaap

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Mr. Pareek: In tough times it is all the more important to communicate effectively both internally as well as externally. It is important to communicate the right picture to both employees as well as to the external world, else it leads to lot of speculation and facts are moulded by different factions in a manner they like, which may be not true. It is advisable to communicate well across the organization so that information is not restricted to a select few. Markathon: With the launch of Toyota Etios, Tata Nano, Chevrolet Beat and the plans of many other manufacturers to launch cars in the very popular small car segment in India, how is Maruti equipping itself to deal with the competition? Mr. Pareek: As always Maruti has believed that competition is good for the industry, we have the most aggressive product portfolio amongst all to offer our customers. In the last one year we have launched many new models to excite the market like New Wagon R, Alto K10, SX4 diesel, Kizashi, CNG models and recently the New Swift. Maruti is investing in new plants and R&D facility to strengthen its capability in India. Our product line up for next many years is robust and we will keep the market excited. Markathon: With Kizashi, the company targeted a whole new set of customers. With close to 50% market share in the domestic car market, Maruti is known as the small car manufacturer. In this background, how was this premium vehicle differentiated from others in terms of branding? What were some of the challenges faced in this regard? Mr. Pareek: The branding of premium vehicle is different

from small cars because it is targeted to a completely different set of customers. These customers belong to segment which has different needs and liking. On one hand where awareness is of key parameter for small cars, relevance plays very important part for the premium category. For small cars where functional benefits are important, the premium car buyers are more concerned about social benefits. As far as the challenges are concerned it was our first time to enter this segment and believe we have taken small steps but in right direction. Markathon: What is your advice for graduates in Bschools looking to make a career in sales and marketing? Mr. Pareek: Marketing & sales is one of the most exhilarating and gratifying streams to enter for any professional; M&S guys are also called as bread earners for the company. Each day is different and comes with a new set of challenges and opportunities. My advice would be to take this with an open mind and an attitude to learn new things and serve customers.

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Rise of Luxury Cars: An Indian Perspective

Mayur | Priya | Keshav

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Cover story|Rise of Luxury cars: An Indian Perspective

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Rise of Luxury Cars: An Indian Perspective

It was just five years ago when a Honda Accord or a Toyota Corolla whizzing by, got your head turning with an utter of Oh My God and occasionally, you would see a saloon with a three pointed star to get your heart throbbing. Times have changed now, with the head turners being AUDI, Mercedes-Benz and BMW and the throbbers as Jaguar, Aston Martin and Ferrari. Although the Indian car market is growing at a steady annual growth rate of 6-7 %, rising income levels, growing global aspirations and untapped growth potential is giving the luxury car segment (which is about 3-4 % of Indian car market) a bullish 40 % annual growth rate.

1000 mark but the future looks optimistic. The players of this segment in India include Ferrari, Maserati, Lamborghini, Rolls Royce, Bentley and Bugatti. Lamborghini has recently come up with its latest model LP-700 which is priced at INR 3.69 crores and has been successful in bagging 20 orders till now in India. It should be noted that not only people are ready to pay this super premium price, but are also willing to wait for a long 18 months for delivery. Porsche is planning to launch a revamped model of its famous 911 sports car model in India in 2012. Indias third largest passenger vehicle company Tata Motors got a Global recognition in this segment when it acquired Jaguar Land Rover over a $ 2.3 billion acquisition. Encouraged by the high growth attained in other countries like China, luxury car makers are looking at India as the next best opportunity. There are about 20 foreign luxury car companies including Ferrari, Aston Martin and Maserati which opened their showrooms only last year in India, majority of these companies bring vehicles as completely built units.

From History to Now

The saga of the luxury cars in India began with the entry of Mercedes-Benz way back in 1995. At the time of entry, they came out with the SClass, E-class, Mclass and the likes. The first mover advantage has been an important reason for Mercedess dominant market presence. The low penetration of luxury cars began attracting other major players. Although BMW and Audi had a late start, their market shares are very close to Mercedes. There is also the super luxury segment which covers the cars which have their price tags in crores. The annual sales figure hardly touches the

The Luxury Aspect

In India, the luxury car segment starts at around INR 20 lakhs and has emphasis on luxury rather than on practical usage of the space inside. High end features in a luxury car include automatic climate control, pure leather upholstery, navigation system, satellite radio and adaptive cruise control for speed adjustments.

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From the consumers perspective it satisfies their pleasure motive from a physical and psychological vantage. Another interesting point to note is that luxury is adaptive. There is no ceiling to it; its value increases as the conditions surrounding a person change. Earlier, someone owning an ambassador saw it as a luxury. With Maruti Suzukis increasing dominance, the ambassador no longer had the same bearing of luxury. Once Mercedes entered India in 1995, this acquired a totally different dimension. The quality of engineering, aesthetics, pricing, ad campaigns projecting a sense of royalty, showrooms, customer treatments etc. redefined the adjective of luxury of a car. Currently, with multiple entrants in the market and the plethora of customizations being offered, people choose cars which can heighten the sense of uniqueness and of indulgence. In fact, this is found to be rising in Delhi and the NCR regions. When the purchasing power exceeds the basic sense of need fulfillment, hedonism presents itself as the avenue of pander. This is exactly what the luxury car makers are cashing on.

The immediate question that comes to our mind is what inspired these car majors to enter India. It is the changing mind-set of the consumers here who have started following the mantra Got it? Flaunt it! Recent trends have witnessed the birth of a new upper middle class which includes youngsters benefitting from the IT boom, MNC executives drawing thick salaries, farmers who have recently acquired wealth, small scale business families etc. The age of affluent class has gone down to mid-30s from 50 years. The mind set of consumers buying luxury cars has shifted from a discreet buyer who wanted to remain under the radar to the one who wants to flaunt his wealth. A recently released report by AT Kearney confirms that the spending on luxury cars in India has grown by 36% in 200910 to a record $1 billion surpassing growth in every other luxury item - jewellery, electronics and watches. The countrys economic growth is another reason for the growth in sales of luxury cars.

The Prominent Players

India is invaded with many foreign luxury car companies, but it is a trio of German dominance which has captured about 85 % of luxury car market in India. AUDI, BMW and MercedesBenz have created a stiff competition and have occupied the top three slots since inception. MercedesBenz, considered as an epitome of luxury was enjoying the decade long unopposed leadership since it entered India in 1995. After the entry of BMW and AUDI in 2006 and 2007 respectively, the actual game

The Gold Mine, India

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started. These companies began aggressively targeting Mercedes-Benzs legacy by offering the combination of sportiness and luxury together with fast developed dealership network, financial services and better after sales services. Both these companies focused on sportier features and new launches to encourage young buyers. Currently if we look at the sales figures, the top position is held by BMW, followed by Mercedes-Benz and the third spot resting with AUDI. However if we look at the annual growth rate, AUDI tops the chart followed by BMW, which is followed by Mercedes-Benz.

Jan-Nov 2011 sales in India

8692 5117 6698

AUDI

Mercedes-Benz

BMW

most successful SUV in the luxury segment without which the entire Indian luxury segment would have managed only a 30% growth rate as against the current 40%. BMW has chosen a similar service offering as Mercedes-Benz by launching its BMW premium selection - used car business, in 2011 which enabled the customers in India to own a BMW product at as low as 16 lakhs. BMW gave five years after sales coverage as compared to 2 year warranty by Mercedes-Benz. The company currently has 22 dealers in India covering the tier 2 cities like Jaipur, Kochi, and Surat etc. In the recently concluded 2012 AUTOEXPO, together with the M5, the company has come up with the launch of its iconic Mini Cooper which has shaken the world with its amazing response.

Annual Sales Growth 2010-11

84% 30% AUDI Mercedes-Benz BMW 70%

Mercedes-Benz

A brief overview of the German trio dominance.

BMW
The company established its production plant in Chennai with an annual capacity of 3000 units in a single shift. BMW, with its aggressive marketing, fast expansion of product line has managed to bag the number one position replacing Mercedes-Benz in the year 2009. The BMW X1 has come out as the

Mercedes-Benz is trying to get back its numero-uno position in India. The company is planning for

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aggressive pricing policy by increasing its local sourcing and hence focusing strongly on the growing luxury car segment. The company launched the Proven exclusivity program to sell it pre-owned Mercedes-Benz cars. Mercedes-Benz is leading the other end of the spectrum where still the S class reigns. It is also the first in introducing the car leasing concept in this segment in India. Through this option, customers can drive away a car of their choice without any initial investment but paying an affordable monthly rental which includes the regular servicing and insurance cost. The customer who leases the car pays for only what he uses and also has the option to buy the car after 3 years. The company has used the 2012 auto expo to launch SLS-AMG roadster and the new generation M class SUV to rejig its old image by showcasing its dynamic and sporty capabilities.

strategic locations as chosen by its rival, BMW. Although it is quite late, the company is foraying into the used car business. The success of the idea can be seen from the fact that the company revised its sales target from 4500 to 5000 in the year 2011. The company is now trying to give competition to the most successful compact SUV from BMW, the BMW X1, by launching the AUDI Q3 in the entry level segment at a competitive price of around INR 24 lakhs. The company has also launched the AUDI S6 and an electric hybrid car the AudiA3 in this years AutoExpo.

Global Standing
Though the Indian luxury car market is growing at a robust 40 % every year, USA is still the largest market for luxury car sales. Though the luxury car segment is the niche market in both the countries accounting for 5.5-6.5% in USA and 3-4 % in India, there is a huge difference in the number of units sold. If we look at China, the three German car majors have expected a sale of 20,000 units in India whereas at the same time, sales expectation from China was around 3,20,000 units. But in recent scenario, the increasing pull of Indian market with its economy growing and the stagnation of auto sector market of developed nations like European nations, US, Japan has forced auto majors to look at India as an emerging and potential market. Major luxury Units sold in Units sold in car brands USA in 2010- India 201011 11 Mercedes Benz Audi BMW 224944 101629 220113 6181 2650 5855

AUDI

The company started production with AUDI A4 from Aurangabad plant. AUDI invested significantly in brand building, aggressive marketing and better after sales service and has made itself known for style, technology and luxury. AUDIs successful Q5 and Q7 have helped the company give an excellent sales performance. AUDI which was the first to come up with the Led eyelids feature which was soon replicated by other car makers, has come up with 15 dealerships across the country by following

Source: Auto car, Industry data, www.motorintelligence.com

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The Price Driver

Most of the Indian subsidiaries of the luxury car makers source in the vehicles as Completely Built Units or CBUs which are complete cars, fully assembled from the place of import. Currently, these units attract an import duty of 60% followed by other taxes like state taxes etc. which add up to an effective 110%. Thankfully, as part of the Free Trade Agreements with the EU, India is deliberating on slashing these rates to 30%, bringing it on par with the tax rates on Completely Knock-Down Units or CKUs which comes in parts and have to be assembled at the country of import. If this law were to be implemented, there would be a cap on the number of such high end cars exported by the EU. The flipside to it is that all of the work would be done abroad; reducing the employment opportunities in India, further discouraging companies to set up plants in India. The domestic car industry is massively pegged at 1.98 million cars which were sold in 2010-11. Companies are also increasing their assembly line capacities rather than bringing CBUs to take a more aggressive approach when it comes to pricing.

production follows the market as stated by Peter Kronschnabl, former president, BMW India in an earlier interview with Team Markathon. Opening dealerships across India is also an approach to endorse the companys brand presence. Initially when these companies enter a new market, they do not come with the entry level offerings; rather they come with mid-level and high end products to develop a premium brand image. Later after well-set brand positioning, companies come with offerings in entry level segment and lure the aspiring people to be a part of the elite class. A practical example is the launch of BMW X1 series after 4 years of entry, which was a grand success and contributed about 3000 in sales volume last year in the luxury segment. AUDI also followed suit this year by launching the AUDI Q3. In a market where almost 75% of the luxury cars are purchased through financing option, companies are coming up with easy financing schemes e.g. BMW financial services. For promotional strategies simple TVC and print ads have to be aided with other innovative and emotionally connecting tactics as the prospective consumers are the elite few.

Tactics to Grab the Pie

Companies are targeting the youth as their wallets become hefty even before the age of 35. They are projecting a dynamic and young image to match with their prospective consumers. Even with uncertain demand in the nascent stage of luxury car market, companies are aggressive with the strategy in which the

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Audi sent out a 34 second ad video which takes a dig at four other major competitors wherein the ad concluded with Audi encompassing their biggest strength. This ad was very simple, jeered their rivals and communicated who the boss was. Even though the segment as such is niche, companies do not mind battling each other conspicuously, again, to only prove the potential that the segment has to offer. These companies use social networking media to reach out to people as it allows a high level of connect with consumers. In fact , Michael Perschke, Head, Audi India, spoke in a 41 second video wherein he overtly thanks the online community for the support offered and also requests fans to post questions hinting on the reach of the virtual medium. Companies are leveraging this route to develop brand loyalty and strengthening customer relationship. It is also a very economical way of understanding consumer requirement and getting fan feedback. As a part of companies growing IT demands, mandates are in place to monitor online presence of companies and perform the required PR activity to garner popularity.

The consumer preference of owning luxury cars as a means of flaunting their wealth promises a bright future to the sales of luxury cars, going by the trends of last 3 years. This sector has proved to be an underdog, registering double digit growth year on year. The luxury car market cannot ignore the challenges in its way to penetrate the Indian market. Currently, India faces the problems of pot holes and taxes. Luxury car makers are aware that Indias crowded, mutilated roads and the lack of robust highway network hampers their sales. The Indian Automobile industry and the government of India have to ensure that the barriers are overcome so that this sector continues to grow at its current unprecedented rate. To address the tax barrier issue, manufacturers are setting up assembly plants in India to bring down import levies to 40% on models assembled domestically. It would not be a long time before we see big sticker cars occupying considerable space on the Indian roads. This will depend upon government support and the various innovative strategies adopted by major luxury car brands which are yet to be witnessed on a large scale.

Where Are They Driving To

According to the global research firm McKinsey & Co, there are 2 million households in India with annual incomes of more than $36,000 and this is expected to increase to 8-10 million households by 2015 if the countrys economy growth remains on track. It is also expected that India will be the fifth largest automobile market in the world by 2015.

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An Interview with Mr Praveen Kopalle

Professor of Marketing,Tuck school of Business, Dartmouth

Praveen Kopalle is a Professor of Marketing at the Tuck school of Business, Dartmouth. After having done his BS in mechanical and production engineering from Osmania University, Hyderabad and MBA from Indian Institute of Management, Bangalore he went on to do his Ph.D. in marketing management from the Graduate School of Business, Columbia University in New York City. He has written many international journals and won reputed awards Thought Leader, Texas A&M Conference, Spring 2010 and AMA-Sheth Doctoral Consortium Faculty, 2009 being the latest ones. His teaching and research interests include marketing management, marketing research, pricing strategy, and new product development.

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Markathon: Tell us something about your years in IIM Bangalore. How have some of the experiences you had in college helped you over the years in your career? Mr. Kopalle: My education at IIMB has provided me a sense of confidence that I could find my place in this world and instilled a sense of responsibility within myself to go out there and find it or create it for myself. I dont think I would have ever done it quite the same way without my education and experience at IIMB simply because there was constant learning for me both within the classroom along with the faculty mentoring, and outside what with the constant encouragement from my classmateseven years after graduation. Plus, I have made a few very close friends who have always been a sounding board for me over the years and helping me in times of need, so I could grow. Markathon: What made you choose a career as a Professor in Marketing? Was it always your aim? Mr. Kopalle: When I was a student at IIMB, I was very interested in consumer behaviour. Coming from an Engineering background, I thought I could add value by developing quantitative models of consumer behaviour. And since my Ph.D. days at the Graduate School of Business, Columbia University, thats what I have been doingdeveloping marketing analytics both to test theories and help managers. And thats how I got into marketing.

characteristics that are important for generating innovative ideas: (1) They are future oriented, (2) They have empathy with the typical (or mainstream) consumers, and (3) They have the cognitive skill of making associations across seemingly unrelated problems or ideas. Thus, the visionary aspect of Emergent consumers comes from a unique blend of personality traits and processing abilities that gives them an intuitive, almost instinctive understanding of a new concept. They embrace new experiences and ideas. They tend to be optimistic and highly creative. They are reflective by nature. Emergent consumers are able to process information both experientially and rationally, rather than experientially or rationally. This special ability enables them to imagine or visualize new product concepts that may best fit typical consumers needs and, through logic and analysis, evaluate and refine these concepts. They can help brands and companies by not only helping them create more appealing and useful products and product extensions, they also can increase the likelihood such products will be successful in the marketplace. Markathon: You are known for your expertise in the pricing domain. Could you tell us about some recent trends in pricing relevant to the Indian consumer and marketer?

Mr. Kopalle: During the past decade, three things have happened: (1) Data storage costs have gone down exponentially, (2) The computing power of machines has gone up exponentially, and (3) Globally, companies and Markathon: Could you share your views on managers now have an analytic mind set. In Emergent Consumers with our my view, the stars are wellreaders? How do these aligned now for consumers help companies to leverage brands? the vast amounts of customer Mr. Kopalle: Emergent consumers are essentially visionaries. They have three key purchase Emergent characteristics that are important for generating innovative ideas: (1) behaviour They are future oriented, (2) They have empathy with the typical (or data that mainstream) consumers, and (3) They have the cognitive skill of making consumers are now associations across seemingly unrelated problems or ideas are essentially available in the visionaries. They retailing arena. The have three key biggest trend in pricing

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that I am seeing now in retailing is price optimization. Price optimization involves collecting the data, estimating the price elasticities, and then determining the sweet spot for pricing. I believe this is quite relevant to Indian market as the data collection and storage technology is improving in the Indian domain. Markathon: What do you think will be the key success factors that foreign brands need to keep in mind to succeed in the Indian Market? Mr. Kopalle: There are three key success factors for foreign brands to succeed in India: (a)Understand the psyche of the Indian consumer and figure out why they buy what they buy. People have the impression that Indian consumers are just price sensitive. In fact, the typical Indian consumer is Value sensitive not price sensitive. Value implies perceived benefits of a product minus the perceived price. (b)Adapt to the Indian audience. This is one of the mistakes multi-nationals make when entering India they take the same product as in the western market, convert the price from dollars to Indian Rupees by using the exchange rate and then wonder why their products dont sell in India. (c)To be a successful retailer in India, companies need to adapt both the product and the pricing to suit the needs of the Indian consumer. Appropriate product configuration and corresponding pricing need to go hand in hand. Markathon: Modern retailing in India took off in the early 2000s and then saw consolidation post the 2008 recession. How do you see it shaping up in the near future? Mr. Kopalle: India is one of the fastest growing countries in the retailing domainboth bricks and mortar and E-commerce. In the past decade, the infrastructure has improved dramatically and the

companies now have much more robust business models relative to a decade agothe models now are better adapted to the Indian consumer needsIm pretty amazed at how the Future Group, for example, integrates Indian philosophy in its retailing strategy and how it organizes its Big Bazaar store to really give a true bazaar feel to its consumers. Third is to provide a good user experience and the more successful companies have been doing that in the past 10 years. In short, retailing (including E-commerce) in India will reshape the landscape from the eyes of the consumer. Markathon: Reaching out to rural India and selling products there is a major challenge for the companies. How do you think they should tackle this challenge? Mr. Kopalle: I totally agree that reaching out to rural India and selling products there is a big challenge for companies. The way to address this market is three fold. One is to identify the catchment areas and build retail outlets there and sell everything from clothing to durable goods. Second is to tailor the products to needs of the rural marketthink about how the telecom companies have been able to sell cell phones to the people in villages with customized plans and attributes for that market. Third is, as I mentioned aboveproduct and pricing need to be in unisoneven in the rural market. Markathon: Any words of advice for our readers looking for a career in marketing? Mr. Kopalle: Here goes. (1) Enjoy what you do. While you encounter many milestones in your life, relish the journey itself. (2) Be a good listener. Many times, when someone asks a question, we always respond to the question but not to the person. The only way we can respond to the person is when we have a sense of connection with others around us even if we are meeting them for the first time. (3) Focus on the more important things in life. Give preference to important but not so urgent things rather than to urgent but not important things.

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markathon | january 2011 markathon | august 2012

Kingdom of Lights: Creativity at its best!

Aditi Joshi | DoMS, IIT Roorkee
A young man is seen running barefooted across a city with men perched atop poles, walls, tables, the bonnet of a car and even beneath the water in a swimming pool. But the object of his interest is a chandelier above the king. He quickly slides in as its centrepiece, pops something in his mouth and lo and behold, the entire city flickers to life (read light). This ad campaign: Kingdom of Lights, for Perfettis Happydent White, took the ad world by storm. The way it builds up the humour quotient to colossal proportions of absurdity is what makes it tick. An exemplary audio-video experience for the users, it successfully puts across its point and etches the brand in the minds of the audience through sheer entertainment factor. It promotes the recipe for a successful promotional campaign as a unique combination of creativity, humour, grandeur and perfect execution. In a low differentiation and low involvement product category, instant recall plays the key role. But the first task was to determine the benefit that the product would offer to a crowded market that was not very high on the health consciousness quotient: sparkling shiny teeth. Playing with the different elements of the marketing mix: price, promotion media, packaging and product variants, Happy dent has been continuously trying to capture the essence of the Indian audience. With such an entertainer to beat, and in trying to recreate the magic, the ad was followed by a series of TVCs, print ads and saw the creation of internet and mobile touchpoints for the Happydent brand. A quick review of the different media vehicles used for the promotion of brand Happydent would be useful in obtaining a macroscopic picture of the campaign.

1. Interactive online ad: The ad strip shows a sad and bored girl with a slider to her right that reads, Move the slider to see my smile. As you slide it up, the Happydent pack pops open and the girl can be seen smiling. This is a simple yet extremely eye-catching tactic. 2. Mobile based Happydent White game: Perfetti Van Melle India launched an exciting mobile based car racing game that consisted of three levels. To win the race, the player is required to clear the 22

perspective perspective

markathon | august 2011 markathon | january 2012

third level without ramming his car with other cars on the track. In case of collision, the cars headlights break and one needs to use a Happydent White to light up the street and thereby complete the racing challenge. 3.Internet- Happydent Shineshah Challenge : The initiative is designed as an amalgam of an animated story and a game. It milks the light vs. dark or good over evil philosophy while promoting its brand proposition: Happydent Wave 4. Social Media Marketing initiative on Facebook (www.facebook.com/happydentgum): Social media is used to engage the core target group through contests like Happydent Sparkling Smiles of the Week promoting the feeling of fun and friendship that has come to be related with the brands image. 5. Print Ads: Use of print media was made to capture the masses by crafting the images of iconic leaders entirely from dental gum. The bold initiative quoted Giving millions a reason to smile attracting appreciation as well as flak in the same

measure. 6. Point of purchase promotion: Happydent comes under the impulse product category, where the decision making often happens at the point of purchase. Hence, posters, jars and danglers as a media vehicle may be effective but have shorter life spans. In a country where confectionary products were yet to pick up and the bulk of sales is through unorganised trade: small shops, kirana outlets, etc., it was a challenge for PVMI to position its brand. As they say, innovation is the sole key to becoming a leader in the marketplace of the future. The campaign proved to be one of the most creative ones launched in India. Not only did it manage to remain top-of-the-mind among its customers, but was also acclaimed globally. Its market share zoomed past expectations (more than doubling over the previous year) and brand awareness grew dramatically striking a chord with consumers all over. Looks like, an ad well executed is a work almost done.

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war zone | eye 2 eye

markathon | january 2011 markathon | june 2012

Will 2012 see online retail give real competition to the next door retailer?
The latter half of 2011 saw the emergence of one of the most animated debates of the last decade, the decision to allow 51% FDI in retail. While the government later backtracked from its decision the indications are clear, the retail market is headed for a change. 2012 is absolutely the year in which next door retailers will realize immense pressure from online retailers. Not only are traditional brick-and-mortar retailers competing with other retailers of the same format,

Traditional retailers are now building integrated online-offline propositions

Online retail in the past 2 financial years has made rapid progress.

Nandita Koch IIFT

In this context it perhaps becomes interesting to discuss the relevance of online retail giving competition to the next door retail. Online retail in the past 2 financial years has made rapid progress. The most evident example in this regard is the rise of the Flipkart group. Originally dealing with books the online retail giant has now moved to encompass a large number of articles. Its stocks have only gone northwards and it has been able to develop its own logistics company. The question remains that will such companies give real competition to the next door retailer. The answer in the present times is in the negative. India in recent times has seen a technological revolution yet only 8`5% Indians has access to the internet. Thus at any moment this 8.5% is the only real market that exists for online retail. Also logistical variations in India ensure that a pan Indian coverage by a online retail group is almost improbable. The online retail industry caters to a particular set of items and not a wide range of goods which the next door retailer offers. In the near future what we will see is the next door retailer doubling up as a online retailer in his vicinity but it will always be tough for online retail to give real competition to next door retail. friends, as there is Orkut.

Rashmi Agarwal XIMB but are also facing threats from online retailers which directly hit their consumers by providing them with more expedient shopping opportunities. As per the International Council of Shopping Centers, instore spending went up only 2.9 percent in 2011 compared to last year while online sales are up 15.7 percent during the same time period. The business model of online retail seems to be better than that of traditional brick-and-mortar format. The fundamental problem of the physical format is the complex supply chain structure and the need to maintain accurate inventory levels at each and every store and warehouse. Traditional retailers are now building integrated online-offline propositions to increase availability and responsiveness like increased use of software tools and third party sites like eBay and Etsy which make local stock available easily. E-commerce companies too, are continuously innovating to make the shopping experience more user-friendly and accessible like Amazons Price Check Promotion which offered a 5% discount to shoppers in traditional stores who looked up items using its Price Check App and then made a purchase through the online retailer. Retail runs at very thin margins and if e-commerce takes a 5 or 10 percent out of the category, then its harder to stay in business. The book industry is by far the most successful in online retailing. The rising asymmetrical competition between next door and online retailing, leads brick-and-mortar chains to have a Change or die attitude to sustain the competition.

Topic for the next issues Eye to Eye: Is piracy killing the music industry? Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 15th February 2012. Include your picture (JPEG format) with the entry. 24

war zone | silent voice

markathon | april 2011 markathon | January 2012

Silent Voice
Theme: Rebranding of Nestle Milk as Nestle A+

LAST MONTHS RESULTS

WINNER: Venkata Ramanan | IIFT, Delhi Congratulations!!! receives a cash prize of Rs 500!

NEXT THEME FOR SILENT VOICE: 7UPs new positioning: Dil Bole I Feel Up LAST DATE OF SENDING THE PRINT AD: 10th February, 2012 EMAIL ID: markathon.iims@gmail.com Send your entry in JPEG format named as SilentVoice_<Your Name>_<Institute>only.

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specials | ADdicted

markathon | january 2012

Ad-dicted
Gaurav Ralhan | iim s

PRODUCT #1: Coca Cola POSITIONING: Believe in a Happier Tomorrow AD AGENCY: McCann, Delhi CONCEPT: The TVC opens with a bunch of kids humming to the strum of a guitar. As the children sing, a montage is flashed on the screen, along with some text and statistics that support the images.The film drapes contrasting images and weaves it around the jingle 'Umeedon Wali Dhoop, Sunshine Wali Aasha'. VERDICT: Catch/Miss Catch The timing of the TVC has been perfect; right before the beginning of the New Year. After a year marred with number of scams and misgovernance the TVC brings in a ray of hope of optimism and happiness. The track is marvellous; a very well written and beautifully composed. The visuals of the TVC are very simple; they could have done better in this department. Even though the idea is fresh for the Indian audience but the same concept has been implemented in the west and was just modified according the Indian context, not much of the innovation from the agency on this one. All in all I like the track but could have done a lot better on the visuals. LINK: http://www.youtube.com/watch?v=xMaT4vcBG6Y

PRODUCT #2: McDonalds POSITIONING: I'm loving it AD AGENCY: Leo Burnett CONCEPT: TVC opens with the shot of a mini school van being driven by an old man. The kid sitting next to the old man requests him to take a left turn as he wants to go to his uncles house. The man follows the direction given by the kid, while the other kids chuckle sitting in the back of the van. Suddenly all the kids shout to stop the van. In the next shot it is shown that the van stops outside McDonalds and a McDonalds man greets them. Suddenly all the kids start wishing him happy birthday to which the man gets sentimental. The voice over then come in and says Its not about money every time, sometimes its about happiness too. In the last shot the man is shown having an Aloo Tikki burger and says, 'I'm loving it'. VERDICT: Catch/Miss Catch I personally liked the TVC a lot. It strikes an perfect emotional chord with the audience. I like the suspense in the advertisement, in the beginning of the TVC nobody could have imagined it to be a McDonalds ad but then everything comes together perfectly in the end; a very refreshing ad after a long time. Although I never endorse using kids for the TVC but then it has come out really well, so thumbs up from my side. LINK: http://www.youtube.com/watch?v=iKCe0Za3lBA&fea ture=related

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specials | radical thoughts

markathon | january 2012

India Still the No. 1 One Day International team?

Jitesh Patel | IIM S
Yes. India is still the best ODI team around. This might sound unbelievable to most cricket fans around the world, especially after the 4-0 drubbing we received at the hands of Australia in the recently concluded test series, but when it comes to ODI cricket, I still strongly believe that India is one of the best teams in the world. ODI cricket is drastically different from the 5 day version of the game and India has always been better placed in the shorter versions of the game. Not to forget, as Sehwag reminded all of us in the press conference after the Australian series, Team India is still the reigning World Champion. The glory days of April 2011 seem far away after what has happened in England and now in Australia. The Indian cricket team has always been a poor performer in test matches outside the subcontinent and therefore has consistently struggled to win tests in such conditions. Our results in ODI matches have been different and this is one of the reasons which lead me to believe in the caliber of the Indian ODI team. The composition of the Indian ODI team is quite different from the side which plays the test format. VVS Laxman and Dravid who are mainstays of the test team have been out of the ODI squad for a long time now. The likes of Kohli and Raina have played fantastic one day cricket over the last few years and it is clear that they have immense confidence while swinging their willows in the shorter version of the game than test match cricket. The fielding displayed by the One day team is also superior to that of the test team because of the addition of Yuvraj and Raina into the fold.One of the striking differences is how Dhoni approaches his own batting in a Test Match and in a One day game. He has donned the role of a finisher in the shorter formats and has displayed extremely solid temperament in guiding India through some of the trickiest chases including the World Cup final. In the longer version of the game, he seems clueless as to what he is supposed to be doing. This has hurt Indias chances in test match cricket. A poor performance by the captain can weigh down the entire team and at the same time, an inspiring performance can lift the spirits of the entire squad. Very soon, we will find out whether India is still a good ODI team. They have two back-to-back one day tournaments coming up- the long CB Series in Australia and then the Asia Cup. I am sure the performance of the team will be way better than the Australian whitewash and also hopeful of the fact that the Little Master will finally reach the magic three figure mark that has eluded him for a long time now.

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specials | updates

markathon | january 2012 Dominos pizza has allocated an annual marketing budget of Rs 34 crore towards digital (including social media), television advertising, and door-to-door promotion. Following the introduction of the online ordering service in Aug 2011, Domino's Pizza is all set to boost its digital presence. With roughly 54% market share in the organised pizza category, it will continue its focus on being a delivery-based QSR (Quick service restaurant) chain, with a focus to turn the brand into a household name even in small towns. It also intends to employ search engine marketing (SEM) search engine optimisation (SEO).

BRAND LAUNCH
NOKIA retains its position as the most trusted brand of India
The Brand Trust Report 2012 released by the Trust Research Advisory lists Indias 1000 Most Trusted Brands. The report maps 61 components of trust in order to determine the rankings. Nokia and Tata retained their first and second positions as Indias top two Trusted Brands this year. LG grabbed third place, followed by Samsung. Sony, earlier in third place slipped to fifth position. Despite recent controversies, Maruti Suzuki improved its rank by one position to become Indias sixth 'Most Trusted Brand'. Among personalities, Anna Hazare topped the list of most trusted leaders as he moved ahead of Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan..

BRAND WATCH
Shaadi.com launches Angry Brides
In a bid to fight the dowry menace, the online matchmaking portal has launched an online game titled Angry Brides inspired by Angry Birds. Available as a free application on Facebook, it has already attracted more than 2,70,000 'likes'. The game spans three levels where the player gets to interact with three bridegrooms carrying a heavy dowry price tag. The player needs to strike the dodging grooms with a range of weapons spanning household items like rolling pin, sandals, utensils, and brooms. Each strike decreases the dowry demanded by the groom, and adds it to the player's points called the 'anti-dowry fund', which can be published on their Facebook wall/Timeline.

Rajnikants website runs on Rajni power

They say nothing is impossible for Rajnikant. Webchutney has exemplified his larger than life image by developing a microsite that runs without the internet dedicated to superstar Rajinikanth on his 61st birthday. The microsite: http://www.desimartini.com/allaboutrajni.htm showcases facts and excerpts from the superstar's life and films. Visitors have to 'earn' the right to view the site by disconnecting their internet connection to enter the site, which is loaded with inside scoops, controversies, facts and famous jokes on conquering the impossible, and actions that no one else but Rajini can perform.

Volkswagen India to foray into second hand car business

The German manufacturer will soon launch a used-car brand called Das Welt Auto. This pre-owned service will deal with used VW models as well as pre-owned cars from other manufacturers. Every car sold from Das Welt Auto will carry a warranty and a roadside assistance service. Volkswagens financial arm will aid the purchase of the pre-owned cars from the Das Welt Auto outlets. Das Welt Auto will be operational in the first

Dominos Pizza to go digital

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specials | updates half of this year. VW plans to test the waters by opening two or three outlets initially.

markathon | january 2012

MEDIA
Reliance Industries enters the media sector
Mukesh Ambani controlled Reliance Industries Ltd has finally announced its big-bang entry into the media business. RIL has struck a deal that could eventually give it a major equity stake in the Network18 Group which currently operates a number of TV channels and media businesses.

HT Media launches HT Mini targeting Delhi Metro Commuters

Targeting the 18 million people who commute daily using the Delhi Metro, Hindustan Times Media has launched the HT Mini, a 24-page news publication which would cover top news stories, city news, sports, entertainment and lifestyle. This officially marks the launch of the first convenient to carry-half tabloid size newspaper and is very likely to spark off a new trend among other publications.

Brand advertising outperforms response in digital marketing

direct

BMW finally brings the Mini to India in four different variants

Negating its previous decision to not launch the brand in India, the BMW Group recently launched its iconic Mini brand at the Delhi Auto Expo 2012. The Mini would be available in four models priced up to Rs 31.99 lakh. The BMW group had earlier scheduled the launch in the year 2009, but were forced to shelve the plan owing to poor market conditions. The Mini will have separate showrooms, two in Delhi and one in Mumbai. The car will be imported as completely built units and there are no plans to assemble the car in India in the near future.

Online brand advertising initiatives have outshined direct-response marketing. According to a DIGIDAY and Vizu State of the Industry Survey, marketers plan to increase their online branding initiatives in 2012 much more than that of their direct response tactics. The survey reveals that while 64% of marketers plan to increase online brand ad spending; roughly only half of marketers plan to increase direct-response spending. The survey also attributed growing marketer interest in mobile advertising, social media and online video to the expansion of online brand advertising as a category.

Ad Watch
Vodafone tops ad reach index

MTV to enter the intimate wear section

In an attempt to extend its reach among its core youth audience, MTV India is readying itself to launch cobranded lingerie, men's innerwear and condoms. MTV has earlier lent its brand to products ranging from bags & stationery to eyewear and mobile phones. MTV will tie up with Kamasutra condoms, Bwitch lingerie and Crusoe mens innerwear to enter the intimate wear section. Condoms and lingerie will be co-branded with MTV while the men's innerwear will sport the name of MTV's popular reality show, Roadies. Vodafone India Ltd and two other telecom operators captured four of the top 10 slots in the Mint-SynovateTVAdIndx survey, continuing their dominance. The survey measures ad awareness and brand recall. Idea Cellular Ltd ranked 3rd and Tata Teleservices dropped by 4 positions to capture 8th and 10th spots. ICICI bank was ranked a close second, 5 points behind Vodafone.

Fiat India unveils 'Fiat Linea and Punto 2012 Ocean Campaign'

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specials | updates Fiat announces the launch of the upgraded versions of the Linea and the Punto, through a television commercial shot entirely underwater. The advertisement shows the two cars being assembled against all odds in a challenging environment. The underwater rendition is directed as a literal as well as figurative manifestation of the brand's ability to dive deep into core consumer wants and needs. Despite scoring high on memorability, the TVC has drawn flak from certain quarters who claim that the TVC is pretentious and irrelevant. The ad can be found at http://www.youtube.com/watch?v=4mDKogVMcQE

markathon | january 2012 promoting tourism, which resulted in 2011 being one of the best tourism years for the area. The ad can be found at http://www.youtube.com/watch?v=hoOfIR4Vk1o

Mercedes attempts to obsolete in its new TVC

makes

airbags

BP launches AD campaign focusing on the oil spill progress

BP has launched a television advertising campaign focusing on the restoration efforts the company has made along the Gulf Coast since the Deep-water Horizon accident. The advertisements will also be available on social media channels such as YouTube. Post the disaster, BP has spent millions of dollars

In its latest TVC for its new B-Class variant, Mercedes marks the advent of its Collision prevent assist feature. The ad titled Thanks, Airbag signals the change in emphasis where Mercedes is trying to ensure that the airbag is needed less and less. Along with adaptive brake assist, the Collision Prevention Assist feature uses radar to look for likely collision targets in front of the car and seeks to prevent any head on collision. The ad can be found at http://www.youtube.com/watch?v=LWNYKXBx-K4

Articles Are invited

Best Article: RUBAYET CHAKRABORTY, AHANA CHAKRABORTY | NITIE (Mumbai) He/She receives a cash prize of Rs.1000 & a letter of appreciation We are inviting articles from all the B-schools of India. The articles can be specific to the regular sections of Markathon which includes: Perspective: Articles related to development of latest trends in marketing arena. Productolysis: Analysis of a product from the point of view of marketing. Strategic Analysis: A complete analysis of the marketing strategy of any company or an event. Apart from above, out of the box views related to marketing are also welcome. The best entry will receive a letter of appreciation and a cash prize of Rs 1000/-. The format of the file should be MS Word doc/docx. Were inviting photographs of interesting promotional events/advertisements/hoardings/banners etc. you might have come across in your daily life for our new section The 4th P. Send your self-clicked photographs in JPEG format only. The last date of receiving all entries is 15th July 2011. Please send your entries marked as <ARTICLE NAME>_<SENDERS NAMES>_<INSTITUTE> to markathon.iims@gmail.com.

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Please send in your comments/feedback to: markathon.iims@gmail.com Visit: www.iims-markathon.in

Team Markathon, IIM Shillong