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About Horizon - The Marketing Club ...

Where two thoughts meet

01 MARKET FLASH The latest marketing news bits from around the world 02 LAUNCH PAD The new products in the market that you should watch out for. 03 PAGE 3 Chill your eyes 04 BIG IDEAS Short Stories of great people 05 I Slate 06 BUDDING VOICE Marketing Grows Younger 07 AD-REVIEW Dissecting the Ad 08 MARKET ANALYSIS Knowing specific markets 09 MARKETING MANTRAS 10 MARKETING QUIZ 11 SENIOR SPEAK 12 CORPORATE INTERFACE

MARKET FLASH
A Rice in Indian Rural market Well there is a common myth that Indian Rural market is less exciting than the urban market, but the current trend of companys interest in rural market has revealed the potential of the rural market. Now even rural customers are aware of brands and they are ready to purchase the product if it is worth paying. Now the products which were considered as status symbol is now being considered as must haves products. Analyst says that Indian rural market is growing at 3-4% per annum, so isnt it an opportunity to invest on this market. So we have the answer as companies like HUL, pepsi, Panasonic are showing there prominent presence in this potential market followed by many companies who shows interest. Building strong distribution by Rural retailers Well the biggest problem that a company faces in the rural market is there geographical location and hence it makes difficult to lay out a strategic distribution to reach untapped markets. But now there is a new way that the retailers are managing the distribution network. Thanks to Indian IT, the field staff from manufacturer will take the orders from retailers and wire them via a mobile application to central warehouse and products are delivered to local corner shops and stores, neatly packed in boxes. This, they say, is modern-day door-to-door service. Furthermore, reliable phone connections and networks have made establishing a mobile supply network in Rural market relatively easy. V Mart to open 40 stores in Tier-II, III cities by 2013 Well the retail business has been in news for ever. This time V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to open 40 outlets over the next three years, starting with 13 stores in 2011. These would come up in Tier-II and Tier-III cities at an overall investment of about Rs 80 crore. They are starting with the Tier-II and Tier- III, eventually will plan to enter the rural market in coming future. Tatas to launch Nano houses for rural market Tatas who wants to experience the customers with low cost products with the help of Nano. After giving the Nano cars to the Indian market, it is now looking forward to bring the nano concept in housing sector. This plan is aimed at the rural market and said to be ready by the end of 2012. The houses will be made in pre-fabricated, or prefab, format, under which the company will provide a kit consisting of roofs, doors, windows, etc, which can be erected or assembled. Its a quick fit pilot built in 7 days., the only condition is that consumer should have a land. And the pricing is based on a 20 sq mtr area with a flat root which comes for around 500 Euros.

LAUNCH PAD
Bajaj Boxer 150 cc The Bajaj Boxer is one of the superb bikes from the company which has got tremendous response from the Indian market. The Bajaj Boxer 150 price in India is around Rs. 40, 000. The Bajaj Boxer 150 features are very marvelous. The bike is manufacture with many color and design that is looking very superb. The Bajaj Boxer 150cc is having a gentle design and which delivers good performance to the user. Excellent features of the Bajaj Boxer 150 include displacement and torque producing capacity. Economy of the bike is also nice and thus the Indian customers would definitely like to have it.

Dabur Burrst Fizz FMCG Company Dabur has introduced its Burrst Fizz brand to tap the potential in this segment. Burrst Fizz is available in two flavours - apple and lemon. Dabur has launched the drink in South India and has plans to introduce it in North India next summer. Made from real fruit juice, the new Burrst Fizz range will be available in two SKUs 500 ml PET bottles (priced at Rs 28) and 200ml Tetrapak (priced at Rs 12).

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Force Trump Force Motors, the Pune based pioneers of the LCV Industry that gave India iconic brands like the Tempo, Matador and Traveller launched the TRUMP range of small commercial vehicles. Force Motors have also roped in Bollywood superstar Salman Khan and his brother Sohail Khan as the lead characters for their launch TVC which is currently on the air. The latest campaign DUM HAI BOSS includes Television and Press Campaign in addition to promotional activities held at each of dealerships spread across the nation.

J.K. Cement J.K. Cement, for the first time in its illustrious history has roped in a celebrity brand ambassador to be the face of the Company. The Nawab of Najafgarh, the worlds most formidable batsman Virender Sehwag is now playing for Team J.K. Cement through an aggressive multi-media advertising campaign. While launching new initiatives to rejuvenate the brand and to endorse its various products, this partnership is expected to take the company to a record-breaking victory trail in the marketplace.

BIG IDEAS
ENTREPRENEURIAL STREAK
MANSUKHBHAI PRAJAPATI - Cool Craftsman Mansukhbhai Prajapati, a traditional clay craftsman by profession has created a stir with his revolutionary Mitticool product. A simple and unassuming man from a small village in Rajkot, he has gained recognition due to his innovative use of clay to make refrigerators and other earthen products for daily use in kitchens. A school drop-out, he has achieved a feat that many in the world envy today. He realized that the people in villages could not afford to buy refrigerators as they were expensive as well as having high electricity and maintenance costs. Thats when he developed the concept of Mitticool for which he holds a patent now. Pottery has been the Prajapati familys traditional business, but his father gave up the profession as it was not financially rewarding. Mansukhbhai being the only son was sent to school on the hope that he would build a life through education. To his familys disappointment he failed when in the 10th standard and refused to take up construction work as his father had being doing. Showing typical entrepreneurial characteristics Mansukhbhai was frustrated with the way things were and he wanted to do something on his own. When he joined a tile factory he realized that machines could speed up the production process as compared to traditional method of pottery making. It also fueled his desire to start something on his own. At the young age of 18, he made a machine, which could make 600 tavas a day instead of 100 tavas which used to be made manually. His confidence to explore and innovate grew. He innovated a number of products such as a clay mixing machine, non stick tava, clay pressure cooker, water filter etc apart from his most famous product of Mitticool refrigerators. In fact Mitticool has been his most challenging product so far which took 3 years for him to research and design. Challenges faced It wasnt a smooth start however for Mansukhbhai as his family opposed the idea of restarting the pottery business. But he fought for his ideas and now his family actively assists him in his work. The biggest challenge he faced however was the lack of resources to fund his project. He had to take a number of loans for his various products. Initially he took a loan of Rs. 30000 to start his own factory. He still has to repay a loan of Rs. 10 lakhs which he took for his Mitticool refrigerators. For each of his products it took him months and sometimes years to research and experiment before he developed an acceptable model measuring to quality standards. He gained assistance from various organizations who extended their help in the form of grant and guidance for getting the patent, making the packing box and lab testing of products. His current challenge however is that due to poor marketing his products are not reaching out to many people. He manages to create awareness outside Gujarat through exhibitions and trade fairs. Recognition Mansukhbhai and his products have gained recognition worldwide. His products have generated interest in places such as the US, UK, Africa and Nairobi amongst a few. He exports products now to these countries, though in small quantities as of now. Mansukhbhai is also to be on Discovery Channel for his innovations. His advice to budding entrepreneurs is: Never think about failures. Never give up. Put your heart and soul into what you want to do. Always follow the right path and have patience. Keep working hard.

BRANDING WITH TECHNOLOGY


I-Slate : A Solar Powered Tablet For Rural Indian Students
In a move that could possibly be a challenge to the Ministry of HRD, Govt. Of Indias plan to roll out the $35 Tablet PC, the Nanyang Technological University (NTU), Singapore in collaboration with Rice University, Singapore is releasing a new low cost, solar-powered tablet named I-Slate. It would be ultra-lean on power usage as well. . In March 2009, IEEE identified I-Slate as one of the seven technologies that will change the way people interact with machines, the world and each other. According to a release, this breakthrough will enable more than 100 million of Indian rural students, who attend classes without any sign of electricity, to get access to electronic slates in lieu of their normal and boring slates. This kind of sustainable and low-cost technology development will also help India realize its full economic potential.

I-Slate is the first of the series of electronic notepads that are being developed using green and power-stingy microchips that consume a very less amount of energy. Its chips are being designed and developed by ISAID and Centre of Electronics and Micro technology, Switzerland. They would render the power to I-Slate to be able to run on solar power panels. These panels are almost similar to the ones in the calculator. Could this portable device enable Indian rural students challenge their competitors across the globe? It also can bring the wonders of ICT to rural Indian schools and bring a significant change in the educational scenario. As of now, there is no indication on how much the device would cost. But it should be economical considering the purpose for which it is being developed. Also, the whole concept looks good and promising. If it works as planned, then there would be a sea change in the way education is being imparted to rural Indian students today.

BUDDING VOICE
MARKETS OF LIFE
Have you ever given thoughts to the many small scenes around you? The dhabas and stalls, which are so inconspicuous that they do not catch the eye of the privileged, do survive on the pavements where the evening crowd gathers for a road-side meal. Now, we go on a ride to the outskirts of a grand city. Past the glamour, the wheels take us to lands shining under the hot sun and fields flaunting their green carpets. Nature shows us clans who stare at these travelers with awe and an air of curiosity. We see the subtle stalls of the city being quite a luxury here. People look forward for their adventures to these utility shops in their local luster. Get into one of their shopping stops. Look around for those brands, which fill the stands, and customer demand for the same. They are never the same that are gorgeous in packing or marketed with skills that call for customer interest. Simple and basic, they are just the best to satisfy the needs of the rural fraternity. How many brands we know or have heard of, has succeeded in the rural world? Very few may be. Years back, a brand could carve its name in the minds of the rural and the urban folks alike. None other than the Ayurveda based product manufacturer VICCO captured the markets through their heavy marketing, distribution and manufacturing strategies and quality of products. Viccos Vajradanti became a market mover. Taking the mannerisms to a level higher, Vicco was the premier reason for the shift of usage of plant leaves or baked husk for teeth to tooth powders. Bottles of Vicco were sold off in moments as the power of knowledge of cleanliness spread in the countryside. Vicco Turmeric became the standard antiseptic for the rustic life that until then resorted to plant crushes as medicine. It was a Revolution that occurred. Companies over the Country took valuable cue from Vicco. They understood the potential that was inherent in the disorganized rural sector. However, very few came forward and took the risk of waiting in order to get a good hold in these markets. A phase of wipe out happened as tooth- paste overtook the convenience of tooth powder. Colgate moved in to fill this gap created and has made it great in the country. Changing habits were of prime importance as the companies realized that only such an orientation could create a product- pull, which was easier to tackle as far as FMCG were concerned. It was the turn for soaps and next. Never has a name been more popular for any product than that for Unilevers Lifebuoy in the rural market. Hard in texture and in a dark pink complexion, Lifebuoy sold its soaps in large quantities. Even today, as Lifebuoy stands with many variants of milder action, the primary version still has a strong fanfollowing. Phase out might tough if the market pulls are multi-dimensional. Indian in all aspects, ITC is not far behind in the markets forming Indias soul. As biscuits or as cigarettes or safety matches and agarbattis, the companys vast distribution has basic products for rural consumption too. Parle- G is one of the favourite biscuit brands of any kid on the pastures of peace and purity. Great is the potency of these markets left disregarded under the noses of the MNCs, which export far and wide. It should be checked to find the better advantage that is believed to take shape if not in the Country of Origin. India is not small as it looks. In contradictions and Unity, we move forward on this Day.

AD-REVIEW
TATA Magic spells its cast
Rarely do we see a TVC fully focused on rural market, addressing their problems and promoting product which fulfils needs of rural consumers. But TATA Magic TVC has captured attention of one and all through its simple and earthiness appeal. The TVC shows TATA Magic driver narrating story of Chaugle while driving through grim terrain. Naive Chaugle is a regular commuter a demure countenance and ever-smiling face. One day he boards the Magic and is pleasantly surprised to find a beautiful girl as being his co-passenger. Chaugle cannot take his eyes off her. How beautiful she looks! he thinks. Our Chaugle is immobilized until another co-passenger, a hen, gives out a cluck to shake him out of his trance. Now Chaugle is embarrassed because the boy sitting beside him laughs out loud at his discomfiture. To placate the brat, he offers him peanuts. But as it turns out the boy has more tricks up his sleeve. He takes a peanut and darts it at the girl. The beauty, so long engrossed in reading a novel, looks up and finds the boy pointing his finger at poor Chaugle. She now understands everything and cannot but give her shy, smiling consent to the lovely mischief orchestrated by the boy. Chaugle finds his soul mate while travelling in TATA Magic. In villages people dont confess their love overtly and this TVC captures this aspect in a beautiful way and what do you call it Love nahi re Magic!!! Making an ad for rural market is tough that is what most experts feel. Rural market is one of most under researched area, consumer behavior is unknown and also perceived scenario that medias reach is very less in these areas all these factors make it difficult to design an ad for them But yet they cant ignore the increasing demands and disposable income level of people in rural and semi urban parts of India. TATA Magic a small commercial passenger vehicle targeted at rural regions is successful in fulfilling the requirement for a vehicle for commuting distances between villages, an ideal substitute for auto rickshaws and taxies in such parts. TATA Magics ad does justice to addressing this problem and central theme Har safar mein kahani h !!! What really makes this ad deliver its promise is the rustic background in which it is set. To lend authenticity to the premise that when the ride is comfortable, people talk, interact, open up, the ad has been filmed in Rajasthan. Agency: Rediffusion DYR Rating:

MARKET ANALYSIS
DESIGINING FOR RURAL MARKET
With an approximate population of 700 million people, the rural Indian market is important for multinational corporations to tap. Although rural Indians need to purchase consumer goods just as their Western counterparts do, rural Indian consumers have a different set of needs that must be met by both package and product. Understanding the available distribution networks in rural India is crucial to making a successful entry into the rural Indian market. Packages need to be designed to withstand more distribution abuse due to poor roads and more primitive modes of transportation. Finally, when creating a package for rural India, small sizes allow consumers to try new products. It also caters to the fact that most rural Indians have low disposable incomes and little storage space at home. By applying these lessons that have been learned from multinational corporations in the past, the task of entering the rural Indian market should be promising. Think Small Due to the fact that rural Indians have small disposable incomes and very little storage space, one of the most popular concepts to hit the rural market has been sachets. Sachets were first introduced to India in the 1990s by an Indian company selling a 10-milliliter sachet of Velvette shampoo. Sachets meet the needs of the rural consumer in several ways. Sachets are inexpensive, they occupy a small amount of space, and they allow consumers to experiment with new products that they may never have tried before. Coca-Cola is another company that has found success by thinking small. In a packaging change aimed directly at the rural and lower-income markets, Coca-Cola launched a new 200 Ml (6.8 oz.) bottle. Packaging in smaller units clearly helps to increase the affordability of products for rural Indian consumers. Visual Communication The rural area is a market where large portions of the population are illiterate. So, when packaging consumer products for rural markets, companies must use prominent logo symbols and logo colors to assure that illiterate consumers will be able to recognize the products. Therefore, communicating brand values through the package rather than with words becomes essential. By creating a bond with the consumer through the package, companies are able to establish a relationship that encourages repeat purchases. Loud, bright colors are typically used on packages to differentiate a product from the others on the shelf and to create a lasting impression in a consumers mind. Nirma, the largest selling detergent in the world, found success in the rural Indian market by using unelaborated packaging to position their product as one that cleaned well yet was affordable. Material Usage Cost is not only a factor that influences a consumers decision. Multinational corporations also address cost when evaluating various packaging options. For example, meeting the needs of consumers by packaging products in small quantities increases the packaging costs for a company in comparison to a large bottle of product. One way companies are able to keep the prices of sachet-type packages down is partially due to lower government duties on small packs. In some instances, it can actually be cheaper for a consumer to purchase sachets rather than a bottle of product. By thinking small, using pronounced colors and logos, and planning for material usage, multinationals can create packages that meet the needs of the rural Indian consumer.

MARKET Mantras

GREY WAVE
A company that is thought to be potentially profitable and ultimately a good investment, but not in the near future. An investor will get the returns of his investment when he has grey hair.

FIVE-FINGER DISCOUNT
In the American slang it means Stealing or Shoplifting.

BROWN POUND
It is the purchasing power of non - white men among whites in Britain and elsewhere in the West.

The future lies with those companies who see the poor as their customers. To get rich, sell to the poor

- C K Prahalad

Pradeep Kashyap, Father of Rural Marketing

MARKETING QUIZ
QUESTIONS
1. Ads for which brand of Cigarette were the first in India to feature a woman? 2. Name the models who featured in nude in the controversial Tuff shoes ads in 1995? 3. In Japan, the Just-In-Time(JIT) approach to manufacturing is also known as _______. 4. In a hierarchy, every employee tends to rise to his level of incompetence. This principle is known as _________. 5. Which city in Germany has the distinction of housing the first car manufacturing plant in the world? 6. Which company developed the first true word processor? 7. He flew his micro flight aircraft L esprit de Indian Post around the world and has been featured as an example of the Complete Man in a Raymonds advertisement. Name him? 8. Inflation, where price rise makes workers demand higher wages which then again increases the prices, is known as _________. 9. Founded in 1947 to manufacture Koreas first radio, its corporate logo resembling a human face depicts The Face of the Future. Which Korean Conglomerate are we talking about? 10. Who is the author of the path breaking book, Emotional Intelligence?

ANSWERS
1. Wills 2. Milind Soman and Madhu Sapre 3. Toyotism 4. Peter Principle 5. Stuttgart 6. IBM 7. Vijaypat Singhania 8. Spiralling or Cost-Push Inflation 9. LG 10.Daniel Goleman

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SENIOR SPEAK
JOBIN DEVASIA
Q: Please give some details about the organisation you completed your internship with? Jindal South West (JSW) which is a part of conglomerate Jindal group. JSW is a multimillion dollar company and is led by Sajjan Jindal. Organization which has pioneered in the field of steel is now entering into the Cement industry through the SBU JSW cement Ltd. Vishwas is the brand name of the cement which would be launching in Bangalore market by 2012. Q: Which industry does the organisation belong to and what are its core competencies? Cement industry which was once unorganized market, has become a potential industry in recent years with many competitors trying to fit in the market share. Aditya Birla is market leader in this industry and they invest a huge amount on marketing activities and about 40% market is lead by Aditya Birla. The core competencies of the JSW Cement Ltd is Availability of raw material like slag, as it being their own production. Cement plants with a total capacity of 5 million tonnes. Brand name of JSW Q: Kindly elaborate on the study you did in the organisation and the idea behind it? My project included the Market analysis and Positioning of Vishwas cement in Bangalore market. The idea behind this project was to understand the ground reality of the market and how does the marketing activity works in an organizational point of view. To complete the project I had to meet various dealers and bulk purchasers of the product. I did an exploratory and descriptive research to understand the market and the attributes which helped to build a positioning strategy for the brand. Q: What were your takeaways from the study? The project was really helpful to understand the industry and also to understand that how effectively the marketing strategies are applied in the organization. My takeaways from the study would be Marketing not only involves office work but also includes the field work too. There is a cut throat competition in the market; if you are out of the league then you are out from the business for ever. The importance of customer relationship, after sales service and the dealership network role in the cement industry Q: How do you sum up the findings from the study? The project was really helpful to understand the industry. Cement is no more a commodity Customers are aware of brands Relationship with customers plays an important role. After sales service is the key factor that many companies miss out to maintain. There is a high exit barrier which limits a new player to enter the market. Q: Describe your overall experience Well, it was a wonderful experience to work in such a pioneered organization and it helped me to learn more of the practicality of marketing world. My project demanded most of my time on field, where I had to meet many dealers, competitors and contractors. Many customers are not aware about the types of cements and there is a lack of information on cements if I compare to the developed country. The cement industry is on the verge of becoming organized industry and thus with regards to future aspect there is a lot of potential and as an MBA student I find the industry attractive and where one can sustain growth in the professional front.

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CORPORATE INTERFACE
MARKETING CLUB CORPORATE INTERFACE
Date: Speaker: Topic: Discussion: 22/07/2011 Deepu Chandra, Entrepreneur Innovation - Tools & Methods 1. Discussion on innovation 2. Tools and products of innovation 3. Invert Action as a tool

Innomantra Consulting - Transforming Imagination - Deepu Chandra (Graduated from IIM, Bangalore), Director - IP Management, Innovation Management, and Strategic Business Incubation Projects in : LM In Power, L&T, Titan, Siemens, Nokia, Honeywell (Application of innovative tools and practices in busi ness); now want to come with a plan of a B-school in order to channelize best brains Where should a company innovate? A model comprising the internal environment of a company (Leaders and Managers; culture, system), and (Business model, product and process- functional components in innovation) Invert : as a tool: o Invert action 1. Can a function be inverted for the same result? 2. Can a function be interchanged (heat, cool, fix or more) 3.Can something top-bottom be made bottom top? o Assumption: Can a basic assumption about the product be inverted? o Goal: Invert your basic goal & brainstorm of ideas to achieve the positive result. Word of Advice Classroom teaching is important but do not forget to open your minds, the factors which we ignore while on the campus. Know your batch, it is important to know every batch mate.

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CONTRIBUTIONS
Market Flash- JOBIN DEVASIA Launch Pad- AMAN DHAND Page 3 RAJAT SETIA Big Ideas- AANCHAL Branding with Technology RAJAS THANEKAR Budding Voice APARNA RAJ C. Ad-Review- ROCHAK VYAS Market Analysis SHEJO JOSEPH Quiz- RANJITH KUMAR Quotes- IBOPISHAK Senior Speak- SUMAN Corporate Interface- IBOPISHAK

EDITORIAL TEAM
Editor-In-Chief- Ibopishak Singh Editors- Aanchal Nichani, Aman Dhand, Aparna Raj C., Jobin Devasia, Rajas Thanekar, Rajat Setia, Rochak Vyas, Ranjith Kumar, Shejo Joseph, Suman Bhakar Creative and Design TeamTarun Gupta and Rahul Sinha