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JULY 2010 ISSUE #1-10

EMPORIO
To the Facchas:

Dear Friends,

Philip Kotler famously said “There is only one winning


strategy. It is to carefully define the target market and
Extra! Extra!
direct a superior offering to that target market.” We
have taken these words to heart and tailored the first Prizes worth Rs. 400 to
issue of Emporio this year for you – our target market.
Some of you may have come in with a basic
understanding of marketing while many of you may not
be won! Read all about it
have any idea what marketing is all about. We take
pride in not having segmented the market and hence, inside!
targeting all of you.

How you treat this newsletter lies solely in your hands.


Whether you read every page and save it in a treasured
part of your computer or press „Del‟ and completely
forget about it, the truth shall remain that everything
that has been written has been written with a purpose-
a purpose of giving some insight, a purpose of  Contents:
enhancing our collective knowledge, a purpose of
preparing you for the future and most importantly a  Word-of-Mouse Advertising
purpose of building a purpose within you.
 Advertising Gone Wrong
What follows are our ideas and thoughts penned down,
intended to provide you with some food for thought. If  Crowdsourcing
you have any ideas on the issues being discussed here,
do send them across and we will feature them on our  Success Story of Amul Advertising
website.
 Making Advertisements
For those of you seeking material benefits, there are
contests within the newsletter. Have fun cracking them
 History of Advertising
and winning prizes!
Until next time!

Ayshwarya,
Niche Coordinator

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JULY 2010 ISSUE #1-10

Word-of-Mouse Advertising Word-of-mouse communication relies heavily on


Rachit Kumar the creation and maintenance of a sound
reputation. Companies actively work towards
Gone are the days when viral marketing was building a specific brand image so that the
epitomized by word-of-mouth communication. consumers visualize the products or services
The advent of the internet and the spread in its offered by a particular company if and when they
global outreach thereof have ushered in a new era feel the need to procure them. Word-of-
wherein face to face discussions at focus groups or mouse typifies an exaggerated form of word-of-
over the phone have made way for the online mouth, because information is exchanged
dissemination of information. Word-of-mouse profusely through electronic media of
communication embodies communication of the communication.
value proposition through computer-based
channels, such as chat rooms, electronic mails or Just like other viral marketing techniques, word-of-
newsgroups. The phrase “word-of-mouse” was mouse techniques can prove to be a double edged
christened by Jon Zilber in 1991 when he used it in sword for the companies that choose to use them.
the magazine MacUser. Negative reactions from consumers on forums or
negative reviews on blogs hold the potential to
Word-of-mouse communication is usually inspired create a spiraling effect that can kill brands. This
by the product or service experiences by customers reinforces the need for the careful monitoring of
which are conveyed through consumer e-mail these techniques by experienced marketing
feedback, entries on blogs, posts on message professionals. Despite the apparent dangers
boards, personal Web sites, comments on forums associated with word-of-mouse, it promises to play
and e-mail. Unlike word-of-mouth, word-of-mouse a huge role in the future of marketing.
communication isn‟t channeled from person to
person but to numerous persons and the power of
persuasion that can be attributed to it is
significantly lower because of the substantially
lower recall value associated with “reading” as
compared to “listening”.

Word of mouse can be used by marketers to trigger


word of mouth promotion of products or services.
For instance, when customers visit the website of a
company they can be offered a free subscription of
its newsletter. Through these newsletters the
company can offer to its customers all the relevant
information with regards to its products which
invariably gets communicated further by way of
word-of-mouth thereby fuelling gossip or creating
urban legends, something similar to what happened
in the case of Dan Brown‟s Da Vinci Code.

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JULY 2010 ISSUE #1-10

It is not just about translation of taglines leading to


Advertising Gone Wrong bloopers and excessive irritating advertising
Mehak Gulati generating negative publicity for companies but
primarily about the fundamentals of advertising being
Advertising, though it can work wonders for the all over the place. Just a few of the things that can go
marketing department, frequently tends to go wrong are the choice of media, the content and intent
terribly wrong. of the advertisement and its placement.

When your mobile network provider messages you The media that carries your advertisements should be
more frequently than your girlfriend/boyfriend, they an entirely unbiased one. But, the recent trend in the
genuinely think they are advertising. So do MNC‟s Indian media houses has been the adoption of a
who cut and paste a common advertisement across cashless ad-for-equity model. Once the consumers
countries translates into an expletive in the local are aware of the stake holding equation, any
language. For example, the Coca-Cola name in advertisement of the company through the parent
China was first read as "Ke-kou-ke-la", meaning company‟s media channels is perceived as biased; and
"Bite the wax tadpole" or "female horse stuffed with the reporting of that media too as favoring the
wax", depending on the dialect. company. This negative sentiment defeats the entire
purpose of advertising.

Equally important as the media is the content of the


advertisements. Indian advertising suffers from the
epidemic of creating entertaining advertisements that
are completely unrelated to the product and give no
information whatsoever. This can be labeled as a
branding exercise but though the recall is high there
is little or no association with the brand.

Then again, sometimes they try the conventional


approach and end up with the most predictable ads
(just think of every fairness cream ad). An even
bigger mistake is an advertisement where the
consumer gets confused rather than becoming better
informed about the other product. An advertisement
should be clear to the extent of being too simplistic.
"The risk of insult is the price of clarity." Rare is the
It is not just about translation of taglines leading to ad that makes its point clearly.
bloopers and excessive irritating advertising
generating negative publicity for companies but
primarily about the fundamentals of advertising
being all over the place. Just a few of the things that
can go wrong are the choice of media, the content
and intent of the advertisement and its placement.

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JULY 2010 ISSUE #1-10

It‟s a complex ballgame as advertisers often resort to


listing features for the sake of being clear instead of
elaborating on how the product can actually benefit
the users.

These are, but some of the many blunders


marketers make when it comes to advertising.
With increased automation of ad-placement, it
becomes all the more difficult to monitor where an
ad goes and when it is aired. Also, in this age of
blogging, the criticism for such blunders creates
immense amount of negative publicity and being
What‟s in it for me? It‟s what a consumer will be left extra careful has become even more important.
wondering after such an advertisement.

Even if the appropriate media and content is worked


out the one thing that can lead to misplaced
contextual meanings is the placement of the
advertisements. This problem is particularly severe in Food For Thought:
print and web media.
[Harvard Business Review, 1984]
A large multinational corporation once
attempted to sell baby food in an African nation
by using packaging designed for its home
country market. The company's regular label
showed a picture of a baby with a caption
describing the kind of baby food contained in
the jar. African consumers took one look at the
product, however, and were horrified. They
interpreted the labels to mean that the jars
contained ground-up babies!

Guess the company!

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JULY 2010 ISSUE #1-10

CROWDSOURCING: Application .On its web page there was a stock of video clips and
a text generator to create customized ads. The top
in Advertisements management at Chevy thought that customers will
Manoj Motiani make nice ads and circulate them across the globe
(An intelligent attempt at marketing the product
Did you ever feel why is it that the art of ad making virally). But the idea bombed when instead of praise,
is restricted to a few agencies when creative many of the ads that the users circulated defamed
individuals amongst the masses can do a better job? Chevy products. The Chevy Tahoe case shows that
Technology development has ensured that there is a when it comes to crowd-sourcing companies control
free market and once you login to Zoopa the process, they do not control the crowd.
(http://zooppa.com/) you can make advertisements
for well renowned brands like Microsoft. In 2007 Heinz tried its hand at a user-generated ad
contest. In this contest users were asked to submit
Zoopa is one of several portals which use the videos promoting its Heinz ketchup. Although the
concept of “Crowd-sourcing”. Crowd-sourcing response for the contest was overwhelming, most
refers to the process by which a company outsources submissions were of poor quality and were not able
its activities to an online community or crowd .There to make the product look appealing. A huge amount
are rewards for completing the assigned tasks. of money was spent to promote the contest itself.
Although crowd-sourcing was pioneered in the The final result was that crowd-sourcing proved to
computing sector, now several business processes be just as costly as hiring a professional advertising
are crowd-sourced. firm. In order to gain from such initiatives the
contest should have clearly stated the parameters
Companies have begun to capitalize on this concept required for the ad which would have helped in
based on the assumption that millions of heads are automatically weeding out ineligible submissions.
better than one .This is especially true when it comes
to producing advertisements. Increase in usage and Matching the crowd‟s capability with the company‟s
improvement in performance of digital cameras and requirement is essential for successful crowd-
related technologies have facilitated the creation of sourcing. Thread-less, which draws its design ideas
advertisements which are of professional calibre. from a crowd of amateur illustrators, is doing really
Internet has facilitated easy and quick sharing of well and challenges the assumption that only
“creative‟s” with the world. professional designers could do better. As the final
designs are selected by users who ultimately buy
Companies can crowd-source their work in the form these t-shirts, the success rate of design is extremely
of contests or by using existing portals. The high.
collective of diverse consumers produce innovative
content for commercials that breaks from As the online community grows stronger more
stereotypical advertisements. Companies not only companies will try crowd-sourcing to get creative
get innovative content but also save huge inputs and to create a Buzz amongst their target
promotional budgets which go into making audience. Companies must have a firm
commercials. understanding of the concept and the possible risks
involved in using crowd-sourcing. Good ideas and
Allowing users to create ads comes with its own set understanding the customer will remain a constant
of risks. In 2007 Chevrolet experimented with user- core of advertising.
generated ads for its Tahoe brand.

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JULY 2010 ISSUE #1-10

Here are some successful and witty examples of


Success Story of Amul Amul ads which were made on very simple yet
Advertising relevant issues.
Jyotsna Kumari

After all the talk about TV commercials, news ads,


critics and analysis of various sorts of advertising
media, welcome back to the medium from which all
commercial advertising really started. Yes, we are
talking about a company here which charted its own
way to corporate success. Its advertising medium
also turned out to be of the “Zara Hatke” type.

Amul ads with the chubby, polka dotted skirt butter This ad captures Tata‟s invention: the cheapest car
girl swinging her ponytail has always attracted “Nano” with the cutest model advertising it!
common man‟s attention. It is the longest running
ad series and has got its name registered in the
Guinness book of world records. Amul has always
maintained its strategy to brand all its products
under the same umbrella brand name of “AMUL”
and advertise them all with the same advertisement.
Its mascot, the butter girl was chosen to target the
housewife segment, who is often the main decision
maker while purchasing dairy products. Most other
products revolve around some grown up girl or
housewife selling commodity products but here
Amul took a new approach. After Amitabh Bachchan‟s controversial movie
“Cheeni Kum” the butter girl came in a new avatar
The butter girl started appearing in hoardings some playing the role of the cancer affected child
50 years ago. Amul has kept the girl contemporary character of this movie.
by theming the ads around some contemporary
political, religious, entertainment or social issue.
Along with that, the ad contains some catchy line
which is a play on butter and brings a new
connotation to the advertisement.

The mix of contemporary issues and tongue-in-


cheek humor has today made Amul the household
brand.

With this Ad Amul reached across the border and


capitalized on Indian interest in Pakistan‟s internal
politics. Again, the words are interesting here.

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JULY 2010 ISSUE #1-10

It is always difficult to remove IPL from the


relevant news list. This ad was dedicated to
Harbhajan Singh‟s infamous slap.

Mascot advertising that too, on hoardings was a risk Q: What is this picture about? And the one below?
which GCMMF took to advertise its vast range of
products, in the food and dairy products category.
This category is considered too sensitive to be
manipulated. Mascots are not very famous in India,
although they work well in western countries. The
advantage of having mascots as brand ambassador
is that they don‟t have any particular image, they
can never run into some controversy in real life and
they cannot endorse any other brand. So the
character of brand is inculcated in the mascot and it
becomes the real ambassador of the brand. Once
successfully launched, it remains in the mind of
consumers longer than the brand. Amul used this
tactic and with a limited advertising budget it got
hold of consumers. The butter girl made Amul a
company with a turnover of more than $ 1500
million. Although Amul has resorted to TV ads and
some other media, they have not been very
successful forays. The main attention is still focused
on the hoarding medium. This along with the
success story of Air India‟s Maharaja explains the
few stories of success of mascot advertising in
India.

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JULY 2010 ISSUE #1-10

However, in the case of Olay Natural White,


Making Advertisements Katrina Kaif was chosen instead of Kajol because
Arnab Saha and Rahul Anand Natural White is primarily a fairness cream targeted
for women above the age of 18 and hence in this
There are several tools used by firms to case Katrina, with her flawless fair skin would have
communicate their offering to the target masses. created a better connection with the target audience
Such tools might include the name of the product, than Kajol. Thus, even within the same brand to
the tag line used, the primary graphics, the deliver the communication for different product
secondary jar structure, jar label and of course lines different actors/actresses are employed.
advertisements.
Generally, when an actor is used to deliver the
The firm does a detailed research on finding out the brand communication it targets the desire and
drivers for the offering. Then it identifies the prime action level of the pyramid. Sometimes the
drivers amongst these drivers. These prime drivers advertisements may involve a plot. Classic example
are bundled into what they call the communication of this includes most of the Fevicol
message. This communication message is then sent Advertisements. Advertisements may also impart
to ad agencies which flush in their creative juices to extensive product knowledge regarding a product.
make the advertisement which reaches us all. This might be done in a case where the market for
the product is in a nascent stage and there is very
The only other message that the firms give the ad little knowledge regarding the product itself or the
agencies along with the communication message is knowledge regarding the product is extremely
the direction of the advertisement. They specify the outdated. The Olay TE Advertisement involving
stage at which the ad is directed, that is what in the Tisca Chopra, Gul Panag and Soha Ali Khan is
AIDA model (Awareness -> Interest -> Desire -> such an effort
Adoption) is to be hit. For instance, the Thumbs http://www.youtube.com/watch?v=n8_6zGceb7
Up ads might be directed at the Desire phase of M&feature=fvsr .
communication.
Another category which probably has seen a similar
The ad agency then decides on the communication kind of trend in advertising is the oral care category,
route via which it can impart the communication where doctors are used to deliver the
message to the target customers. In order to deliver communication because of imparting the product
the brand communication, the firms try to get knowledge and attenuating issues of credibility of
actors/actresses who are most likely to connect the person delivering the message. These ads
with the targeted audience. Let us understand this typically aim at creation of awareness about the
with the aid of an example. product or the category as such.
In case of Olay Total Effects, actress Kajol was Well, the agencies try to impart the communication
roped in for the communication for the message. message via one or a combination of these tools.
This is so because Olay Total Effects (TE) is Some of these tools as well may be used to
primarily an anti-ageing cream and the target communicate the secondary drivers of purchase.
audience is women above the age of 25, more The famous JK cement ad was a topic for
specifically women in their mid-thirties and older. discussion during the IPL. People laughed at seeing
As a result of that the actress who would portray a girl coming out in a swimsuit and it being a
the same in the advertisements must connect with message of JK cement being something special.
the targeted audience; as is quite evident in this case This ad has been often talked about by masses as
that Kajol was chosen primarily for these reasons being the worst ad ever.
for the advertisement.

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JULY 2010 ISSUE #1-10

People wonder as to what went wrong in the grey Did You Know?
cells of the ad makers and the company. Generally
cement companies deliver strength and persistence Cold medication is sold to loved ones and
as their communication message. In a market where not the ones suffering from cold. Why? It
other companies like Binani cement, Ambuja is commonly accepted that the common
cement and others give the same message, JK cold or the rhino virus has no cure and
cement perhaps wanted to establish itself as a player that it is usually harmless. But pharma
by increasing its‟ brand recall. They decided to companies had spent a large amount on
come up with an ad which would remain in people‟s research trying to come up with a cure for
mind for a long time. They wanted to hit at the the cold. So they decided to market their
Awareness phase of the AIDA model and were able product as a relief giver and targeted
to do it with perfection. mothers. This is why you will never see
an ad for cold medicine without a mother
The buyers in cement industry are the contractors. or a concerned relative in it.
The maximum role the households can play is act as
influencers. Now when a contractor wants to
suggest a cement brand to a household, JK being a
famous brand, he will have it as one of the options Identify this product, which is considered as
in the portfolio. Now, the product quality will be the biggest marketing failure of the 20th
tested by the usage of the product with time and the century.
early buying will depend on the price and the way in
which the company pitches its‟ brand to the
contractors.

Hence, advertisements are a route to communicate


the brands‟ message to the target customers. It is
the strongest tool companies have to win over the
minds and the hearts of the customers.

Identify the advertisement on the left for a once


highflying company, which had to file for
bankruptcy in 2001 and 2008 because of a failure
of their marketing strategy.

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JULY 2010 ISSUE #1-10

History of Advertising The Egyptians on the other hand used papyrus to


Ajay Sampath create sales messages and wall posters and Ancient
Greeks and Romans used papyrus for lost-and-
What is advertising? Put simply, it is the act of found advertising. Ancient Romans also used signs
drawing attention. Advertising is drawing attention that were pasted up proclaiming „circuses‟ and
to something in particular. Advertising, one of the „Gladiator matches‟. Another manifestation of
fastest growing industries in the world today, ancient advertising is in the form of wall or rock
contributes to almost 1% of the Global GDP. It is painting whose tradition can be traced back to
almost impossible to escape the world of advertising Indian rock-art paintings dating back to 4000 BC.
for we are constantly bombarded by different forms This practice is present till date in India what with
of advertisements from dawn to dusk. Ever political parties painting walls with their symbols
wondered how all this started? Let‟s take a peek into and messages especially during election periods.
history to trace the evolution of the advertising http://www.xtimeline.com/evt/view.aspx?id=7989
industry. 2

One of the earliest forms of advertising is our Modern Advertising


National bird, Peacock. It advertises its wings in the
hope of attracting the best mate. The Cuckoo does Modern form of advertising is generally agreed to
the same with its voice. In that sense, Nature runs have begun in the seventeenth century with
one the best advertising agencies known to us. classified advertisements in the newspapers.
When did we humans pick this cue from nature and Sometime in 1630s, Frenchman Theophraste
start advertising? Renaudot placed the first advertising notes in La
Gazette de France
Advertising in the Ancient World (http://www.taschen.com/pages/en/catalogue/des
ign/all/05040/facts.a_history_ of_ advertising.htm).
The Babylonians, around 1600 BC, seem to have Simple description and prices served the purpose of
used the first known forms of advertising – store advertising till late 19th century, when technological
signs and street barkers or town criers. Babylonians advances enabled illustrations and later colors to be
also used the concept of sponsorship allowing added to advertisements.
Kings to stencil their names on the temples they
constructed. An early advertising Success Story: Pears Soap

Thomas Barratt, married into the famous soap


making family of A&F Pears, realized that they
needed to be more aggressive in pushing their
products to survive. He launched a series of ads in
the 1860s featuring cherubic children which
connoted the Pears brand‟s values of purity,
simplicity and quality which it holds even today. He
is hence known as the father of modern advertising.
http://www.mediaknowall.com/as_alevel/Advertisi
ng/advertising.php?pageID=history

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JULY 2010 ISSUE #1-10

Birth of Advertising Agencies

The term advertising agency originated in 1842, when Volney B. Palmer opened for business in Philadelphia
which is widely accepted as the birth of modern advertising. This event marked the beginning of a creative
industry that has transformed cultures and languages.
http://www.taschen.com/pages/en/catalogue/design/all/05040/facts.a_history_of_advertising.htm
Present Day Advertising

Advertising Industry has come a long way since the ancient times and is ever evolving at a frantic pace. In the
present day several exciting and new mediums like blogs, mobile, social networking sites have come up. Many
new forms of adverting like Surrogate advertising, Pixel advertising, Web Banner advertising, Public Relations
advertising, Crowdsourcing etc have also emerged. But one thing that remains unchanged is that
advertisements will continue to play a vital role in our everyday lives and will continue to shape our culture and
history.

Lipton Gimmicks
Thomas Lipton was a visionary when it came to advertising. He issued Lipton notes using which one could
buy 1 pound worth of groceries for 15 shillings at Lipton shops. This was the earliest form of coupons.
Similarly, he had advertising telegrams dropped from balloons from the sky. He displayed pictures contrasting
to regular Lipton shoppers (happy) from those who don't (sad). He used people wearing sandwich boards to
advertise Lipton tea. He even once had a Jumbo cheese made and advertised its progress leading to greater
customer involvement with the Lipton brand.

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JULY 2010 ISSUE #1-10

Want to contribute?
Send in articles on the topic “Marketing to the Bottom of the
Pyramid” by the 13th of August and be a part of the next edition of
Emporio.

Dorminate
Does your dorm have what it takes to Dorminate the other dorms?
Suppose a fachch(a/i) comes to WIMWI and has the choice of picking
which dorm to stay in, can you make him / her choose yours? For more
details please check out the Niche NB on Dbab.

Crack!
Have you cracked all the questions that have been peppered over this
newsletter? If so hurry, and send in a mail to niche@iimahd.ernet.in with all
the answers. The first two readers to send in all the correct answers win Rs.200
each.
Brought to you by the Niche team 2010-11
Designers Srikanteaswaran T K Arnab Saha
Saurab Vivek Nair Sashank Rajpurohit
Saurab Vivek Nair Manoj Motiani Rahul Anand
Jyotsna Kumari Rachit Kumar
Srikanteaswaran T K Toshe Prasad Mehak Gulati
Ajay Sampath Ayshwarya R. Vikram