Markathon Feb12

MARKATHON
MARKETING MA GA ZINE OF IIM SHILLONG VOLUME3 | ISSUE 8
Collectors Edition
FEBRUARY 12
FROM THE EDITOR
Dear Readers,
Since Markathon started its journey in April 2009 as the first monthly marketing magazine from a B-school in India, we have had an amazing experience. The magazine has scaled newer heights with each edition and has given the readers their monthly dose of marketing. We have released the magazine at the end of every month unlike most major magazines. Team Markathon has finally decided to change this. From March onwards, we will release the magazine at the beginning of the month. To ease this transition, we have decided to come up with a special February edition which is a Marketing Gurus Collectors Jan 2012Cover edition. In this special, we have compiled articles and interviews from all of our esteemed guests right since the inception of Markathon. A one page editorial can never be enough to express the gratitude we have for each and every one of them, who have been patient enough to grant us time for telephonic and email interviews. We have also had some very special articles from renowned names such as Dipak C Jain, Dean of INSEAD and also Martin Lindstrom, one of the foremost names in the world of marketing. I doubt if there is any other magazine which can boast of exclusive interviews from Al Ries, Jack Trout , David Aaker and Seth Godin. To have achieved all of this within a span of 3 years has made all of us at Team Markathon extremely proud. We have to thank the team from the founding batch of Markathon lead by Asit Jain who gave us an outstanding platform to begin with and the batch of 2009-11 for continuing the wonderful work. We have also covered a gamut of Indian personalities right from Harsha Bhogle (Cricket Commentator and Author) , D Shivakumar (MD, Nokia India) , Hasit Joshipura ( MD and VP, GSK Pharma India), Santosh Desai (CEO, FutureBrands) and Nadia Chauhan (Joint MD, Parle Agro ) among many others. From the academia, Markathon has played host to Professors from B-schools all over the world from Harvard Business School, Wharton School of UPenn, Said Business School of Oxford University, INSEAD, Kellogg School of Management, MIT Sloan School of Management, Tuck School
Business School and others. Personalities like Douglas Holt, Tarun Khanna, Dr.Jagadish Sheth, Sunil Gupta, Jagmohan S Raju, Nirmalya Kumar, and Praveen Kopalle being some of them. I am sure all the readers of Markathon will cherish this Collectors Edition and save it for a long time to come. There are 43 Articles/Interviews in all in this Marketing Gurus edition. We will be back with the March Edition in the first week of the next month. Do send in your feedback markathon.iims@gmail.com Sit back and enjoy this edition! Happy Reading! and suggestions to
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 | february 2011
FEATURED ARTICLES
VARTALAAP SANJAY TRIPATHY
EVP & HEAD MARKETING, HDFC STANDARD LIFE INSURANCE
5 8 10 14 19 21 24 28 32 34 36 40 46 49 52 54
SRIDHARAN RAMPRASAD
CEO, LERROS INDIA
NIRMALYA KUMAR NADIA CHAUHAN DEVITA SARAF DIPAK C JAIN
MARKETING PROFESSOR, LONDON BUSINESS SCHOOL
JOINT MD & CMO, PARLE AGRO
CEO, VU TECHNOLOGIES
DEAN EMERITUS, KELLOGG SCHOOL OF MANAGEMENT
DINESH KESHKAR HARISH BIJOOR
PRESIDENT, BOEING INDIA
BRAND STRATEGY SPECIALIST
PETER KRONSCHABKL
PRESIDENT, BMW INDIA
JAGMOHAN S RAJU G RAMPRASAD SUNIL GUPTA S RAGHAVAN

SENIRO VP, L & T
MARKETING CHAIRPERSON, WHARTON UPENN
CEO TATA TELESERVICES
HEAD OF MARKETING DEPARTMENT, HARVARD BUSNIESS SCHOOL
KIRAN KHALAP
FOUNDER, CHLOROPHYLL
BABITA BARUAH ANJANA VIVEK
VP & CLIENT SERVICES DIRECTOR, JWT
FOUNDER, VENTURE BEAN CONSULTING
CONTENTS
SETH GODIN
MARKETING EXPERT
57 60 63
DOUGHLAS HOLT
PROFESSOR OF MARKETING, SAID BUSNIESS SCHOOL, OXFORD UNIERSITY
PRIYA RAGHUBIR
MARKETING PROFESSOR, STERN SCHOOL OF BUSNIESS
MARTIN LINDSTROM
AUTHOR OF BUYOLOGY AND BRAND SENSE
65
69 72 74 77 79 83 85 88 89 92 94 97 101 104
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VIVEK MEHRA
CEO & MD, SAGE, SOUTH ASIA
RUSSELL WINER
CHAIRPERSON MARKETING DEPARTMENT, STERN SCHOOL OF BUSNIESS
HASIT JOSHIPURA
MD, GSK PHARMA
VENKATESH SHANKAR
TEXAS A & M
D SHIVA KUMAR
MD & VP, NOKIA
JACK TROUT
PRESIDENT, TROUT PARTNERSHIPS LTD.
MAYANK PAREEK
EXECUTIVE DIRECTOR, MARUTI
ANAND KHURANA
BUSINESS HEAD, HUL
PIYUSH MATHUR
MD & CEO, NIELSON INDIA
TARUN KHANNA
HARVARD BUSINESS SCHOOL, SOUTH ASIA INITIATIVE DIRECTOR
AL RIES
FATHER OF POSITIONING ERA
ARAVIND SINGHAL
FOUNDER, TECHNOPAK
DAVID AAKER
BRAND CONSULTANT & AUTHOR
MORGAN WITZEL
AUTHOR OF TATA EVOLUTION OF A CORPORATE BRAND
CONTENTS
SANTOSH DESAI
CEO, FUTURE BRANDS
107 110 114 118 121 124 127 129 132
SHASHANK SINHA AJAY MANRAI ATUL SOBTI
PRESIDENT INTERNATIONAL BUSINESS, GCPL
UNIVERSITY OF DELWARE
EX CEO, RANBAXY
SUDHIR VOLETI
PROFESSOR, ISB
PRAVEEN KOPALLE
TUCK BUSINESS SCHOOL
JAGDISH SHETH
EMORY UNIVERSITY
HARSHA BHOGLE
TV COMMENTATOR, AUTHOR
PRADEEP BHARADWAJ
SAUDER SCHOOL OF BUSINESS
An interview with Mr. Sanjay Tripathy Executive Vice President & Head Marketing HDFC Standard Life Insurance Co. Ltd.
Insurance Sector Marketing Insight
Mr. Tripathy is endowed with the responsibility of leading the marketing portfolio of countrys one of the most reputed and respected insurance company HDFC Standard Life. Prior to the current engagement he was the Head of Marketing, International Business at Reliance Infocomm.
Besides professional commitments, he is an avid traveler. This interview is based on his interaction with Asit Kumar Jain, IIM Shillong. What do you feel about the effect of current market situation on the insurance industry? Though the industry is growing at a lesser pace than expected, the need for insurance has increased due to increased uncertainty. ULIPs as a product category has slowed down because of market sentiments but the conventional / guaranteed products & term plans have become more relevant in todays market scenario. Today, we are seeing customers moving away from a scenario of purchasing ULIPs buoyed by the equity movement to a much more need based insurance purchase. The need for life insurance either protection or saving is universal, irrespective of market conditions. The Indian insurance market is mostly unit linked based and companies are propagating the extended benefits instead of the core benefits of insurance. Do you not think that the core benefit is being diluted? India is basically a savings market with insurance being as high as 17-18% in the overall savings portfolio. Insurance is one of the modes for financial saving / self dependence for self and ones family members (esp. in his absence) and it gives customers the option of saving for the long term while participating in market linked benefits (i.e. in the case of ULIPs). ULIPs provide customers the option of purchasing transparent products wherein they can actively manage their investments (through fund options) unlike conventional products. Besides insurance companies propagate the needs of individuals (e.g. our Childrens plan U.S Scholarship Advertisement / Pension plans Bicycle advertisement). ULIPs are just means to save for that need without losing out on the market linked benefits. We, as a company also propagates our Term plans e.g. Loan Cover Term Assurance Plan advertisement. Hence, I do not feel that the core benefit is being diluted in any way. Emerging channels such as internet, mall-assurance and also the possibility of mobile-assurance might affect the traditional agent network. Your comments. Business acquired by the traditional channels i.e. agents still account for a large proportion of overall business (more than 60%) for most of the private
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insurance players; Banc assurance being the next highest (30-35%) Emerging channels such as internet, mall-assurance have surely become channels for enticing customers, providing them information about products and services but are yet to show large contributions to overall business performance (2-5%). Certain impediments like after sales service, renewal premium collections, repeat purchase, need analysis etc. prove to be deterrents against these channels especially since Indians love to have a human interaction while buying financial products. These emerging channels will surely have their own space in new business acquisition and would always be an addendum to existing channels rather than being a competition to them. How much do you see the opportunities for insurance industry in the untapped rural and semi urban belts and HDFCSL's plans for leveraging it? India is still an under insured market esp. the rural market. There is an urgent need for educating the rural mass on the importance of Life Insurance. Distribution reach, easy to sell products and building trust & brand equity will be the key to success in these rural markets. We do have our presence in quite a few Tier II and Tier III towns and plan to expand over the next few years. Currently we sell policies among rural customers but it is still on a pilot scale (through different models and for regulatory requirements). Scaling up the rural reach will take time and huge resource requirements esp. for servicing these policies over long periods of time. Keeping in view the new emerging, educated and service oriented youth market segment, what are the future
strategies of segment?
HDFCSL
Vartalaap
to tap
that
We strive to make HDFCSL a brand relevant to the target segment. We do this across our communication e.g. The Tulika Sharma Car advertisement (TVC), Young Executive Plans promotion (online medium), offering products that are need based, relevant to the target segment and reaching out to these customers in the way and at the place they would prefer to buy the policy from i.e. through the use of new & emerging channels e.g. Online buying, telemarketing etc. "Sar Utha ke Jiyo" campaign is regarded as one of the successful marketing campaigns in the insurance industry. Please share its secret of success which will act as a great learning for us. Sar Utha Ke Jiyo has managed to redefine the way life insurance advertising has been done in the past. It has managed to bring a stronger connect and relevance of our category to those individuals who did not see a fit for life insurance in their lives. This core brand thought Sar Utha Ke Jiyo was derived at, after extensive research and insight that an individual doesnt want to be a burden on his family and that he doesnt want his family to depend on anyone after his death i.e. of ensuring financial independence and self respect for the family, irrespective of the metro-non-metro divide. In order to create and run such successful campaign (consistently) you need to have a strong & dedicated team who are very much aligned to the companys vision and values and always believe in what they do. Our long term association with our agencies also plays a very important role in achieving this objective.
What is your take on the importance of brand equity in the foundation of a company with respect to HDFCSL? Brand equity plays a very important role esp. for this category as customers invest their hard earned money over long periods with an organization. Customers need to have the right image and reasoning for considering / preferring your brand over 20 other private life insurance companies. In this regard building a credible Brand Equity for HDFCSL has been easy for us compared to any of the newer players. Its strong parentage i.e. HDFC Ltd. & Standard Life, UK organizations that have build high brand equity for themselves in their own category have surely helped us in this endeavor. Besides it is also a continuous exercise. You need to keep working hard at sustaining, building it ever further esp. in a market scenarios such as this downturn and amidst the growing number of competition in the category. Insurance industry has not been an attractive proposition for IIM graduates looking at the past decadal result. But in the time of turmoil it has been a large headhunter. How it is going to change the insurance paradigm and the competitiveness as compared to other BFSI's? Insurance being a growing category there has always been a need for quality workforce; be it at the entry level or at the mid level. Even though it is part of the BFSI category the pay scales in insurance companies are unlike investment banks, MNC banks etc. and hence tend to lose out to these companies in campuses. In the downturn the long term nature and need based products has helped it to remain relevant to customers and is still
showing growth compared to the Investment Banks/MNC banks and hence the need for quality workforce still persists. Also the total number of players in the category is still growing (today 21 private players) and another 5-6 are in line for licenses; hence the need for quality workforce will always exist in future as well. What is needed is a change in mindset among IIM graduates. They need to move away from the quick buck syndrome and look at long term career opportunity (growth & development being the key) with an Insurance company while contributing to society (through its noble cause). Thank You 15th April, 2009
Vartalaap
On 25 June 2007 Hindustan Lever became Hindustan Uni Lever but also correspondingly changed its age old corporate logo. The new logo borrowed the U symbol (loaded with 25 different vitality icons) from the parent Unilever basket and gelled it with the Hindustan Unilever Ltd brand identity. The icons represent the organization, its brands and its idea of vitality. According to HUL the concept behind the new logo is an effort to meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.
Did you know???
Vartalaap
Markathon | June 2009
Homecoming of premium wears

An interview with lerros india CEO
Fashion in India goes back to the ancient Indus valley civilization with rapid advancement taking place in the 7th century. Each region of India boasts a unique culture and tradition, translating India into one of the most fashionable country in the world. But the current situation is not that exciting with fashion industry falling behind other industries in meeting consumer expectations. We interacted with Mr. Sridharan Ramprasad, CEO, LERROS Fashions India and had a healthy discussion on a wider aspect of issues related to industry and Lerros as a whole. A graduate of IIM Ahmedabad (96-98 batch), Mr Sridharan was the Director of Sales and Retail at Reebok India prior to the current assignment. What do you think about the potential of the Indian fashion market as a whole and the premium wear market in particular? The Indian fashion market is at a very early stage of its evolution. Considering that I believe that the potential is immense. The premium wear market is particularly underdeveloped with only a handful of the international brands present in the market. This I believe would be one of the fastest growing segments of the fashion industry. The key for the players would be to make the consumer believe that they are getting in the stores in India the same product at the same price at the same time as time is of essence in the fashion market. Every fashion article has a use by date. How do you suffice your entry in India in the heights of recession? Business cycles are imminent and unavoidable. Recession will be followed by a period of growth. While recession has affected our growth plans, we are setting up a solid base to take advantage of the growth period that will follow. One of the advantages of the recession has been that the real estate rentals have fallen to more reasonable levels and will stand us in good stead in time to come. Lerros is a new player and how does it feel the heat of competition, with large number of brands playing around viz a viz designer brand? Differentiation is the key for success in a competitive market. The differentiation has to be relevant to the consumer. One of the key target segments for LERROS is the 25 to 40 year old men and women. We feel that especially in the womens category there is very little choice for the consumer as far as western casual wear is concerned. Does the current way of marketing practiced in the Indian fashion industry need to be course corrected with respect to their low penetration in the garment industry? One of the keys to fashion is that you cannot please everyone. Every brand has a core target consumer 8
One of the key target segments for LERROS is the 25 to 40 year old men and women
Vartalaap
Markathon | June 2009
segment and has to market itself to this consumer in media and touch points relevant to the consumer base. Hence for a brand like ours that does not have a wide reach yet, in store Retail Marketing and direct contact with consumers will provide the key. Activations and creation of consumer experiences at various touch points will also be critical in reaching out to the target audience. To answer your question every brand will have to look at its consumer segment and plan its marketing activities accordingly. Can you elaborate on the role of fashion events in showcasing products and enhancing the brand equity? Fashion events set the trend for the season. They also educate and inform the consumer about the trends and possibilities.
What in your view is the solution to plagiarism in the Indian fashion industry? As the industry evolves and matures we will see this issue affecting us less and less. Over a period of time Indian fashion will establish its own distinct footprint. Finally, we would like to hear from you the opportunities for management graduates in the Indian fashion industry and also the skill sets required for making big. Fashion and fashion retail is one of the fastest growing industries in the country. For management graduates it offers a unique opportunity of working across segments. In this industry one can move across the streams of Sales, Marketing, Product Management, Retail Operations. This horizontal mobility in the sector offers a huge learning and growth opportunity. Based on his interaction with Asit K Jain via mail on 26th June 2009
Differentiation is the key for success in a competitive market.
Sridharan Ramprasad, CEO, LERROS India
Vartalaap
Markathon | July 2009
An interview with PROFESSOR NIRMALYA KUMAR

Professor of Marketing, London Business School
Markets always change faster than marketing Nirmalya Kumar brought a drastic change to the frame works of marketing and awakened the sleeping lions of businesses to play a greater role in their territory. Nirmalya Kumar is Professor of Marketing, Director of Centre for Marketing, and Co-Director for Aditya V. Birla India Centre at London Business School. Prior to the current assignment he has taught at Harvard Business School, IMD (Switzerland), Northwestern University, Columbia University. He is also a coach, consultant, seminar leader for fifty Fortune 500 companies in forty-five different countries.
He serves or has served on the Boards of Directors of ACC, Bata India, BP Ergo and Zensar Technologies. His book Marketing as Strategy: Understanding the CEOs Agenda for Driving Growth and Innovation is sought after in the academic as well as in the corporate arena. His new book India's Global Powerhouses: How They Are Taking On The World is the perfect destination to savor the globalization march of India Inc. In this interview which is the very first for any B School Magazine, he talked to Markathon about the various dimensions of marketing that needs to be strengthened in these tumultuous times and also proposed a sustainable path to success for budding managers.
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Markathon: In the book Marketing as Strategy, you have mentioned about the declining role of CMOs on the CEOs desk. Do you think the practice can change, with more emphasis now given to quick-fix tactics rather than well formulated strategies and the desire to achieve quicker ROIs? Nirmalya Kumar: As mentioned in the book to get CEOs attention and credibility, CMOs have to become more strategic, more bottom line oriented and more cross functional. In the light of the current situation, the role of marketing is to get a makeover. Because in the end, one cannot cut costs fast enough. You really have to find out how you can increase revenues; find out where the revenues are! The challenge for marketing people in the recession is how to get the revenue up, that too in a short term.
segments. Suppose for each segment I have dedicated purchasing, dedicated R&D, dedicated marketing, dedicated distribution and dedicated service, I can do that. That way I can have differentiation for each of the segments, but the problem is I will lose economies of scale. So the challenge in serving mutually exclusive customer segment is to find out where to cut the value network in order to get the differentiation that the customer desires, while still having the economies of scale that we need for efficiencies. And this is an art. Try to figure out where exactly we need to absolutely cut the value network in order to provide the differentiation that the customer needs and still maintain enough commonality between the value networks of serving different customers, so that we can get the economies of scale. Markathon: Which function of marketing can bring the unique value proposition to the company and to the customer, when value propositions are getting emulated in short period? Nirmalya Kumar: Of course the company will look towards new product development, as it can create the most value for the company if it comes up with unique products that truly meet the needs of the customer. Thats what the companies are looking for. So UVP best comes from the new product development. Of course innovative pricing or distribution can create value propositions that are interesting, but they can be emulated. The one which is most difficult to emulate is the one which comes out of the new product development, because it takes time for the competitors to develop them. Markathon: Along with product development would you also say discontinuing non profitable products should also be taken at a faster rate? Because see in this recession the companies will obviously look for cost cutting, but new product development will involve lots of investment. Nirmalya Kumar: Yes, you cannot have new product development without investment. The fact of the matter is that in the boom times lot of bad practices creep into the companies. There are so many products lying on the shelf and nobody took the decision to delete these products. Recession forces companies to confront products which are not selling, brands that are not performing, promotion tactics that are not working, distribution channels that are not adding value and sales force which are not productive. And for all of
UVP best comes from the
new product development.
Markathon: How does the proposed 3V model is applicable in case of mutually exclusive customer segments on the basis of their perceived value? Nirmalya Kumar: Basically the 3V model is about valued customer, valued propositions and valued network. The more segments you have the more applicable the model is. Because for each segment first you have to define who is the valued customer, thats what the target segment is. As you said, it could be innovative products Vs low cost Vs other products. So every segment has valued customer segment which is mutually exclusive. Thats how it defines the first part. The second thing is once each customer segment is identified, one has to have different value proposition for each customer. So for customers inclined towards innovation, you should have products which are innovative in features, for the low cost customers you have to strip away everything and give them a value proposition which is very much about low price and the basic stuff only. The most interesting part of the 3V model comes, after you know about your different valued customers, and then formulate the value propositions. Then the question becomes where to cut the value network in order to serve the different segments? Because of course I can cut the value network everywhere for each
these things that you confront in recession, you have no choice but to remove them to cut costs. So recession can be a very strong scenario for change management in marketing programs. You look at the automotive companies in US, they all have to restructure. Look at the banks, steel companies, and cement companies. They are closing down their plants and operations which are not profitable and working towards closing down the products which are not performing, removing sales people who are not generating sales. So, you need to prune parts of the product line in which you dont have competitive advantage. Thats what you are seeing across the board right now. Markathon: How can innovation in marketing help make corporate strategies sustainable? Nirmalya Kumar: There is no such thing like sustainable strategy because obviously competitors will copy successful practices. Environment changes, competitor changes, customer evolves and technology too is changing rapidly. So there is no one strategy which is sustainable. But of course, the innovation is an engine which can drive sustainability. Even the most innovative companies are not about launching an innovation and sitting back. To make it sustainable you have to improve it constantly. So the companies, which are successful in innovation, launch a new product with radical features and continuously improve it in small steps all the time and then again launch another product and thus innovation goes on. So innovation is the game which you have to play continuously. Markathon: India Inc is rapidly expanding abroad, but still many international marketing practices have not yet made inroads into India. What do you think the reasons behind it: whether its the characteristics of the Indian market, immaturity of consumers or the attitude of corporate? Nirmalya Kumar: I am not very sure that I have agreed with what you have said. I think that many international marketing practices have made inroads into India. For example the advertising industry in India is extremely creative and quite at par with world standards. Where international marketing practices that have not made into India, most of them are happen to do with online marketing. Online marketing or internet marketing is not that developed in India, it is for good reasons as many customers are still not connected online.
Thats why a big difference between India and abroad in marketing practices is all based on customer behavior. In India print and television advertising is very attractive. In developed world print is almost dying and effectiveness of television advertising is declining. So you have to go online, on the mobile, gaming and social networking to get most of your branding and promotions done. Thats where most of the new actions are and where marketing money is moving. This is not yet relevant in India. So thats why its not a valuable investment. Theres one other place where Indian marketing is different from the developed worlds marketing. Because of the fact that so many customers are either rural or at the bottom of the pyramid, many Indian companies are coming out with innovative products for them. We dont see this in the developed world and even we dont need to see them there. I think the reasons, for the differences between international marketing practices and to India; have less to do with immaturity of Indian market but more to do with its specific context. The Indian market is still very rural, poor and traditional in consumption and that is why many international marketing practices are not yet relevant in India. But when they will become relevant for India, I am sure they will be adopted. Indian marketing innovation will be in the rural market and in the bottom of the pyramid. You will see a lot of new products that are very robust, potable and low cost and that are where the innovation in India lies.
Innovation is an engine which can drive sustainability

Markathon: What should be the course of action for marketers in the aftermath of recession, with market sentiments at all time low? Nirmalya Kumar: Basically there are three actions. First course of action is to cut out all the products which are not generating any value. Look at the marketing programs which are not working and cut those out, because many programs of companies are ineffective. Second is, find ways to increase the revenue. And the third action is to look at the certain needs of the money strapped customers in this recession and find unique value proposition for that.
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Markathon | Aug-Sep 2009
INTERVIEW WITH NADIA CHAUHAN

Joint MD & CMO of parle agro
Ms. Nadia Chauhan is Joint Managing Director and Chief Marketing Officer at Parle Agro Pvt. Ltd. In her role, she oversees Product Development, Marketing, Sales and Distribution for all the brands of Parle Agro Pvt. Ltd. She also leads new business ventures. Nadia has played a pivotal role in the phenomenal growth of Parle Agro over the years. She has big plans and expectations for the future of Parle Agro and is constantly driving Parle i Agro towards being India s number oi one FMCG Company.
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Markathon: As multinational cola czars are sharpening their focus on 'non-cola' drinks, how are Indian players like Parle Agro gearing up to fight these multinationals in the Indian fruit-drinks market? Nadia Chauhan: The fruit drinks market has been seeing rapid growth over the last few years. And that has motivated various F&B players to invest and foray into the non-cola drinks segment. Besides the multinationals, there are several local players who have sharpened their focus in this segment. From our point of view, we welcome competition. Since, for one, it helps further expand the market, and additionally, it ensures that the older, more established players in the segment do not lose focus. We enjoy being kept on our toes and are constantly looking for new ways of expanding our business in this segment. To quote a clich, nobody remembers the second man on the moon. And fortunately for us, we have the first mover advantage in this segment, and that can take us a long way. It keeps you on top of the mind for a long time. With so many firsts to our name, Parle Agro has the proud sobriquet of being a pioneer in the Indian beverage industry. With rising competition, Parle Agro does not just bank on its pioneer status. Constant innovation, an open mind and a vision for the future will ensure that we are always ahead in this race. At Parle Agro, we focus a lot on the kind of products we create. With one of the most advanced R&D facilities, we have developed some of the most path-breaking products, all first of its kind in India. With an established distribution network, we ensure that no matter where in India one goes, our products are available. And finally, an aggressive approach to marketing has helped us create and continue creating some of the most iconic brands in India. Needless to say, our focus on quality is whats allowed us to garner the trust of the billion in our country.
Markathon | Aug-Sep 2009 Markathon | Aug-Sep 2009
Markathon: Now bottled water has become more of a commodity. What initiatives are you taking to make yourself different from your competitors? Nadia Chauhan: Over the last few years, the bottled water market has seen a growth of over 40-45% per annum. This growth has been tapped not just by the existing players in the market, but by various new players as well. Our various initiatives have ensured that Bailley has been growing at the rate of 150% every year.
Parle Agro has the proud sobriquet of being a pioneer in the Indian beverage industry
There was a time when most consumers would go into the market and ask for Bisleri, the then generic for packaged drinking water. Even if they were given a brand other than Bisleri, they would have happily taken it. That was the time when bottled water was far more of a commodity. Today, things are different. You have premium water (such as mineral water brands), you have the premium water brands within the packaged drinking water category and you also have imported water brands. The hospitality segment, which plays a large role in this category, is rather choosy about the brand of water that they serve. They arent necessarily serving the cheapest brand. They are serving a brand that fits their requirements. In terms of look and feel (overall image) of the brand. These are signs of the bottled water market becoming more and more of a branded segment and less of a commodity Today, the bottle of water a consumer carries with him to the gym is a reflection of his lifestyle, his taste. It is almost becoming like a fashion accessory. Having identified this transition over the years, we invested in revamping our bottle design/structure, our branding, our distribution and our communication, to create a specific preference for our brand. Now, you see Bailley being sold at retail stores, fine dine restaurants, premium star hotels, at airports and
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various other key locations. Bailley is also sold on many premium airlines as the preferred choice of water. Every effort invested in the brand Bailley is in line with the fact that the bottled water market is no longer a commodity market. Markathon: Parle Agro is in an aggressive mood to capture greater market share in the beverages segment. The launch of LMN and Grappo Fizz proves this point. What is your take on this? Nadia Chauhan: We have a clear vision for Parle Agro. We want it to grow and be a Rs.3500-crore FMCG giant in the industry and every introduction from Parle Agro is in line with this vision. This year, weve introduced more products than in the past. Whether it is LMN, Grappo Fizz, or even Saint juice. Each of these products is an entity within 3 separate beverage categories. And each of these products has different goals to achieve in the market. Weve always been aggressive and this year is no exception. Weve only gotten better. This is because we enjoy responding to the needs of the market, and we have seen a growing need for variation, for innovation, for quality and for aspirational brands. Hence, each of our introductions has been in line to cater to this. Markathon: More important than pricing and distribution network, the advertising and communication strategies are the vital determinants in deciding the success of the beverage products. Your comment. Nadia Chauhan: Whether its a beverage or any other product. Whether its your success or mine - as individuals. Whether its the success of your institute or the success of my organization. None of these successes is guaranteed on the basis of a single factor. Think back and you may agree. For the success of any brand, there are multiple factors that are responsible for it. Firstly, youve got to have the right product at the right time. Many a times, sophisticated R&D facilities
Markathon | Aug-Sep 2009 develop some of the best products that are the most advanced but dont last too long in the market, because they are introduced at the wrong time. Timing in life is everything. Sometimes, a product is either too early for its time, or too late. Id use one of our own examples for this. Many years ago, we launched a product called Jolly Jelly. A jelly drink that was marketed in Tetra Pak packaging in India. When we launched it, most consumers either didnt know what jelly was or believed that jelly had to be non-vegetarian. Struggling to communicate (though we advertised extensively) we decided to withdraw the product. However, if we were to launch it today, a time when you see Jelly based confectionery all over the market place, even in the smallest of markets and the smallest of outlets, we might taste success. This learning has lasted us a long time, and has ensured with every launch weve asked ourselves one question is this the right time. This doesnt mean that you stay away from innovation, but you take calculated steps forward to ensure your innovation is introduced at the right time. Choosing the right packaging, the right branding and the right packaging design is the second most important aspect, before you can see any success for your brand. Remember, that packaging is the first form of advertising. It tells the consumer why he should pick up that product and what the product has for him. Pricing is a major determinant and is linked to my next point, which is distribution. Whether you have a mass product or you a niche product to market, you have to pay close attention and understand the consumer psyche in detail with regards to pricing. It differs from portion packs to take-home packs. You find that the psyche towards portion packs is far more sensitive than that towards take home packs. Retailers in India understand the importance of pricing to the consumer as much as most marketers
do. Hence, a product with a pricing that is not relevant or justified results in the retailer refusing to stock it, hence restricting your distribution tremendously. Besides price preference of whether its priced too high or too low, brands over time have established branded price points, which has created a preference or a convenience factor amongst consumers. Whether its Rs. 10 for a pack of Frooti or the Rs. 5, which was established by Maggi. These are magical price points, which most brands strive to have for themselves. The right pricing can ensure right distribution. But besides the pricing, having a strong distribution infrastructure is key. Focusing on retail distribution rather than wholesale distribution is the key. Ensuring vast product placement is again important. When a consumer sees your product everywhere, he immediately begins to think - Wow, this product seems to be doing really well, let me try it out. Now, after you have done all of this, and youve stabilized, your advertising becomes important. How you promote your brand in the market space and how you create need for your brand in the minds of the consumer through an emotional platform on television or other mass media. Mass communication ensures that your product works itself towards being top of mind. It also ensures that a buzz is created around your brand. But this alone could not do anything for your brand. In fact, if you have fantastic advertising and a bad product, youre in trouble. If you have fantastic advertising and no distribution, youre in trouble. And even if you have fantastic advertising but a bad price point, youre in trouble.
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Markathon | Aug-Sep 2009
the standards of innovation, quality and vision to another level for its time in 1985. Frooti did not stop there. Every few years Frooti ensured that it re-invented itself, to make it relevant to the youth and move with the time. The product never changed, and never will, but everything around it did, ensuring that it was always as aspirational, always trendy and always your favourite brand. Even today, Frooti continues to innovate. Frooti was the first fruit-based beverage to be introduced in PET not too long ago. We also have just revamped our entire package design. We introduced some path-breaking SKUs, which have made Frooti affordable to all those whove heard of Frooti and wanted Frooti, but could never buy one. This was possible with our triangular pack, which was originally launched at Rs.2.50 and maintained the same price for a few years. It is now at Rs. 5. The communication for Frooti over the years has kept evolving, making it contemporary and relevant to the youth. This year, Frooti has been ranked as not only the number one fruit drink brand in India but also as the 29th most trusted brand in India amongst a 100 FMCG brand survey, by the Economic Times.
was the first beverage in India to be sold in a Tetra Pa

Markathon: Frooti is your groups flagship brand and market leader in its segment. What are the new initiatives taken by the company to maintain this position? Nadia Chauhan: Frooti has achieved this position because from the day it was introduced, it set new standards for the beverage industry. Being the first national mango drink in the country and the first beverage in India to be sold in a Tetra Pak, Frooti raised
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Markathon: Parle Agro is the trendsetter with respect to packaging of beverages, whether it is Tetra Pak or PET bottles. And as packaging directly impacts end consumers, how do you take these decisions? Nadia Chauhan: Parle Agro was the first company to introduce beverages in Tetra Pak in India. Not just that, Parle Agro was also the first to introduce fruit drink in PET bottles. As youve rightly mentioned, packaging innovation is an intrinsic part of Parle Agros product success philosophy. Besides working very closely with our packaging companies to create new benchmarks and create innovative packaging options for our brands, we also have a large team of highly experienced packaging specialists who work on achieving the various goals that are set for our brands. Packaging decisions are based on type of product, the best way to experience it (consumption pattern), the target consumer and most importantly, the pricing.
Markathon | Aug-Sep 2009 Nadia Chauhan: I see Parle Agro achieving its goal of being a Rs.3500 crore company. I see Parle Agro growing further to achieve new heights. Weve grown already from being a major beverage player to having a dynamic confectionery and recently introduced snack food range as well. Parle Agro, in the near future, will not only be a major Food & Beverage player, but will make way into being a major FMCG player in the country. Markathon: Finally, we would like to hear about the competencies required by the management graduates for making it big in the Indian FMCG industry. Nadia Chauhan: FMCG is a fiercely competitive and demanding sector to be in. In the current economic scenario, it is amongst the few sectors that have maintained a steady growth rate, braving the global recession and the rough times the country has been through. For those aspiring to make it big in FMCG, you need to have the zeal to win. You have to be energetic and confident to take on new challenges, be persistent and be prepared to work very hard. These traits will help you develop the right kind of attitude required to fit well in the FMCG industry. Besides these, you need a fair degree of commitment, a quest to learn, ability to deliver results on time and a great deal of passion for the work you do. Like the American author John Maxwell once said, A great leader's courage to fulfill his vision comes from passion, not position.
I see Parle Agro achieving its goal of being a Rs.3500 crore company.
Besides the above, packaging decisions are also based on shelf life of the product that wed like to achieve, especially considering the complexity of the distribution system in India. While the above might highlight most of the functional and technical aspects in the decision making process with regards to packaging, there is a softer side as well. One major aspect with regards to packaging is the ergonomics. The package design, the aesthetics. We work very closely with our communication partners who are trained on the various forms of packaging that we operate in, so that we can achieve the highest level of output for each brand in terms of the aesthetics. Once again, like Ive said before, we give a lot of importance to packaging, because we realize that it is the first and most impact generating form of communication. Markathon: Where do you see Parle Agro in the near future?
Based on email conversation with Saurav Kumar Bagchi
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Markathon | November 2009
INTERVIEW WITH DEVITA SARAF

CEO, VU TECHNOLOGIES and EXECUTIVE DIRECTOR, ZENITH COMPUTERS
Ms. Devita Saraf is the CEO of VU Technologies and the Executive Director of Zenith Computers. She is the pioneer in bringing the concept of luxury technology to India through VU Technologies. Voted as one of the ten young tycoons by The Week, Ms. Saraf writes for guest columns in the Wall Street Journal and The Economics Times.
you have to quietly slip your brand into the right places.
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Markathon | November 2009
Markathon: Zenith has largely focused on lower value products satisfying core benefits, whereas VU is aimed at the upper strata of the society. How do you see the integration of both these business models, as VU must have inherited some of ZENITH values? Devita Saraf: Innovation in products has to be done, no matter what strata you are selling to. Vu has inherited Zeniths aggressive and innovative core values, albeit reaching a newer market segment. Markathon: India being traditionally a price conscious market, what is the scope of luxury technology here? Devita Saraf: Indian consumers are being exposed to new products and concepts daily. The Indian buyer is as knowledgeable as any international buyer. This also makes him a more discerning buyer because he understands quality and is willing to pay for it. So the scope for luxury technology exists because Indian buyers now want the best. Markathon: With respect to high end electronic gadgets, Indian consumers generally prefer globally established brands. What is the marketing strategy of VU Technologies to overcome this? Devita Saraf: Even established brands have to work hard at winning over the Indian consumer. This is because we are an inward looking country, and we dont follow trends of other countries blindly. This is a good thing, because brands are forced to innovate separately for India. VU has always innovated for customers and that is why we have been able to win hearts and trust in such a short time. Markathon: Being a niche market, the luxury segment is dependent on word of mouth promotion. In this context how do you create brand awareness without mass marketing? Devita Saraf: We do a lot of BTL activities throughout the year. For example, we partner with Oberoi Hotels for their events. We associate with other brands that are luxury and also try and do co-branding and events. We also have our own events and exhibitions for Vu Owners Club members. During festive season, when sales are high, we do ATL activities such as newspaper ads, outdoor campaigns,
special offers etc. In marketing, you have to keep attempting a mix of marketing programs because luxury brands are subtle and loud advertising will have a bad effect. So you have to quietly slip your brand into the right places. We also do high-end ads in magazines such as Vogue, but we havent calculated the RoMI there yet. A lot of experimentation is always on at VU. Markathon: VU Technologies have a presence across major social networking sites. What role do social media play in the exclusive segment that you cater to? Devita Saraf: Social media is important because of two reasons: 1. 2. Consumers spend a lot of time online and reach amongst a younger segment is very high Social media marketing is a mix between PR and advertising and you can build a good base of current and potential customers by educating them on your brand.
Markathon: With its high focus on innovation, how does the California based VU Technologies design for the Indian consumers? Devita Saraf: Innovation is at the core of everything we do. We dont really look at competition for inspiration, but we interact regularly with customers for feedback. For example, in USA people watch home videos in a dark room with a loud surround sound. In India, we like to watch TV in bright sunlit rooms in the day with the tube lights on! So the TV has to be sharp enough in this lighting environment. At VU we keep these insights in mind and create products accordingly. Markathon: Being among the young business tycoons of India, who are ready to inherit and give new dimensions to their family businesses, what is your vision for the company as well as expectation from the management circle in achieving the same? Devita Saraf: Young Indians have a chance to play on the global playground, which our seniors did not. We have to play by the rules of global competition and win. But the challenge is to win in our unique way. What this unique way is, I dont know yet. Its a learning process. 20
SPECIAL ARTICLE
Trends in
GLOBAL MARKETING
By Dipak C. Jain
DEAN EMERITUS KELLOGG SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY
Insights and agility are the keys for marketers as rules shift, forcing leaders to anticipate changes and embrace ambiguity while adapting to new circumstances in a world with fewer real boundaries.
Conventional marketing wisdom says that companies must remain close to their customers to thrive. Such intimacy, which is a departure from earlier make-andsell models, invites consumers to help refine offerings, sometimes even as co-creators. Today, in competitive, technology-driven markets where customers are scarce, classic marketing models no longer function as well, as they once did. As a result, marketers must employ an integrated, holistic, sense-and-respond approach to achieve success, in partnership with their customers and leveraging the power of modern distribution and communication channels, most notably the Internet. With proper cultivation, these relationships can spark breakthroughs, and customer engagement will remain crucial for firms in the years ahead. New scientific tools promise to shed more light on biological factors underlying motivation and behavior, offering marketers additional resources. Meanwhile, advances in digital technology continue to impact consumer engagement too, putting more power into marketers hands, and into the hands of their customers. Old patterns of information asymmetry give rise to more level platforms where all parties have access to data. The importance of engaging customers through channels like podcasts, Webcasts, blogs, viral marketing and other forms of social networking is difficult to overstate. Marketers must make smart use of these resources to communicate their brand and value proposition to the right audiences. These tools allow for better, costeffective reach into markets, including niche ones, and let marketers deepen their relationships in those segments. But these tools are a two-way street, with consumers also able to gather and disseminate information quickly about a brand, and they are prepared to share their impressions with anyone who is interested. So unless marketers are wise enough in to understand how they use these resources, technology alone is insufficient for success. Using technology to listen and gain insights that help you genuinely help your customers is the key to success. True customer engagement means anticipating needs and working with consumers to solve their problems. Given the power of social networking, its essential that marketers develop relationships that will have customers talking (positively) about the brand. This word-of-mouth amplifies the brand message, but it is a relationship that
requires constant attention and enough mouths to work. Like technology, globalization is a powerful force that must be understood. While these forces have acted to remove many barriers and unite people, globalization has not obliterated all differences. It is still strategically important that marketers understand regional and national variations. In particular, marketers must appreciate the differences in laws, language, business objectives and supply systems that may confront them depending on where they are in the world. In nations as vast and complex as India or China, for example, it would be a mistake to assume that marketers can simply impose a standard Western marketing model. At the same time, it would be an error to assume that there is no similarity between these countries and the U.S. or Western Europe. The truth is more complicated, and marketers must respect and respond to the opportunities and challenges presented by global markets.
True customer engagement means
anticipating needs and working with consumers to solve their problems.
That said, most of us generally are trained to look for differences. I believe that we should spend more time seeking the common traits that unite us. We may then benefit from shared cultural wisdom, such as that offered by India and its traditions. Ancient knowledge may have much to offer the Western world; in particular, notions of compassion, morality, humility and moderation found in Buddhism, Jainism and other Eastern faiths may provide insights whose value enhances both personal and professional life. For marketers, global competition in a world marked by complex geopolitical and cultural forces is pushing them to think outside their comfort zones as they identify and evaluate new market opportunities. Doing so requires that these practitioners possess several additional skills, including: 1. The ability to anticipate change 2. The courage to manage ambiguity
3. Willingness to adapt to new circumstances to capture value These talents are central to what we may call the new economy that is built largely on managing information and information industries, where firms with the best knowledge are more likely to win, since they will be able to sense and respond to market needs sooner than their peers. As a result, they will have the chance to produce more original, technically superior products that meet customer demand and do so profitably. With better information, firms have the opportunity to create higher value through customization; whats more, technology is letting marketers achieve this level of personalization faster than ever before. While the old economy model, built around the idea of managing industries, has not disappeared particularly in many parts of Asia, where manufacturing remains a very important part of the economy marketers often will find themselves employing aspects of both older and newer models to keep up with rapidly changing commercial environments.
will come to bear within a broader framework of product innovation, process innovation and business model innovation. Each element is integral for success, but marketings real future will require new ways to think about business models. Corporate leaders must be able to think obliquely to determine potential threats and opportunities, and then take strategic action. For example, early in my tenure as a director on an airlines board, I posed these questions: Who is our true competition? Who could ultimately displace our company? Yes, other airlines posed a direct immediate threat, and it was important to understand and respond to such competition. Yet, looking ahead it was clear to me that an entirely different threat existed too: video conferencing. After all, this technology, as it matured, could result in significant cutbacks on business travel, even while the conferencing helped strengthen customer intimacy. A visionary airline could buy a teleconferencing company and leverage the acquisition, including by turning their airport red carpet lounges from cost centers to revenue centers by providing premium clients with a convenient way to enhance productivity. Such innovation comes from dramatically rethinking ones core business, just as Google Inc. did when it redefined its value proposition. Other search companies existed before Google, but while those firms regarded their customers as being people conducting a search, Google saw the potential for a business oriented around those being searched. One could cite similar innovations behind the success of Reliance and Wipro and many others. Marketers looking to change the rules of the game will also find ways to harness the power of diversity. Innovation comes from people, and in global business we can expect the best ideas, regardless of geography, to rise to the top. In the next few decades, developing nations will play a larger role in bringing fresh thinking on many social problems. This is why marketings future also must adopt a truly global perspective while devising a new way of measuring value that extends beyond business. By this I mean embracing endeavors like social entrepreneurship those ventures making a difference in various ways, from eradicating hunger, disease and pollution to providing better education. In so doing, marketing secures its future by building on conventional success in the cultivation of a broader mission of social significance that unites the community.
In
the next few decades, developing nations will play a larger role in bringing fresh thinking on many social problems.
But to gain such insights also requires devising the right metrics to assess the impact of any marketing efforts. Whether focusing on measures like brand awareness, churn, net present value, customer lifetime value or wordof-mouth social media reach, it is important for marketers both to justify their expenditures and demonstrate how the marketing spend is impacting organizational success. While one might be expected to assume that all professional marketers use these kinds of measures, recent research by my colleague, Mark Jeffery, indicates that the vast majority (more than 80 percent) of organizations never adequately track or monitor marketing campaigns using data-driven marketing tools. In addition, some 55 percent of marketing managers reported that their staffs do not understand key metrics. These startling figures suggest that too many marketers are not fully utilizing the analytical tools to produce the information that can help them compete in a challenging global environment. The ability to sense and respond to change and ambiguity
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Markathon | December 2009
INTERVIEW WITH DR. DINESH A. KESKAR, president, boeing india

Dr. Dinesh A. Keskar is President of Boeing India and Vice President of Boeing International. He is responsible for leading Boeings efforts in pursuit of new growth and productive initiatives in India. Before joining Boeing, Dr. Keskar worked as a research associate in the Flight Dynamics and Control Division at NASA Langley Research Center. He has served on several boards and organizations including the American Society of Engineers of Indian Origin and as the chairman of FICCIs civil aviation committee.
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Markathon: Please tell us about the various sales and marketing approaches and strategies involved in the aircraft manufacturing industry? Dr. Keskar: The most critical marketing approach in the aircraft manufacturing industry is to ensure that the customers requirements are well understood. These requirements are with regard to aircraft performance characteristics such as weight, range, speed, fuel efficiency, strike capability (in the case of defence aircraft) and so on. Such a customer-centric approach may be said to be common for any industry but it assumes even more importance in the aircraft manufacturing sector. This is because aircraft manufacturing is extremely cost and time intensive which means that any error in comprehending customer lost sales. The second most important marketing approach is to appeal to a customers airline economics particularly for commercial airplane customers. As a result, it is essential to get the product pricing right - not just the initial acquisition cost but also the total lifecycle cost of operating an aircraft. Given that the typical service life of an aircraft can range from 30-40 years, the after-sales support is another key differentiator in the sales process. Finally, aircraft sales are often accompanied by reciprocal obligations to invest a certain proportion of the sale back into the purchasing country to offset its purchase of the aircraft. In India too, offset obligations are incurred by an aircraft manufacturer when making a sale to government customers (Air India and the Indian Armed Forces). Boeings approach towards fulfilling offset requirements has been to demonstrate its commitment to commitment industry as is partnership with evident as through through India. This high-technology our technology requirements invariably means heavy penalties either in terms of product modifications or
collaborations government labs.
with
research
institutions
and
Markathon: The airline industry has been deeply affected by the recession and thus the aircraft manufacturers are also feeling the heat. What steps are you taking to counter this? Dr. Keskar: The aerospace industry is a cyclical industry. In times of downturn, we continue to focus our efforts on both customers and suppliers to drive costs down at various stages of the value chain. To do so, we leverage tools such as Lean+ and Six Sigma to drive operational efficiencies. We also work with the customer in areas such as route optimization, flight scheduling and crew management so as to help them make adjustments that optimize yields in times of reduced demand. Developing a strong and long term relationship with the customer enables us to serve as their trusted partner to help them consolidate and utilize their resources effectively.
Markathon: What are the important characteristics that should be analyzed, to find out the market potential for airline manufacturer like you? Dr. Keskar: At a macroeconomic level, the demand for both commercial aircrafts and military products is directly correlated to a countrys GDP. To gain a deeper understanding of the drivers of market potential, one has to start by examining the customers motivation to purchase. In the commercial airline business, the objectives for air travel could be any of the following: tourism, conduct of business, Visit Friends and Relatives (VFR) or connectivity to remote parts where travel by other modes of transport is difficult. One of the most important driving factors that influence these objectives is disposable income. The quality and network of associated aviation infrastructure such as airports and Air Traffic Control (ATC) services is another key driver. A proper fuel policy to help reduce the cost to fly is another important driver. Finally, air travel is driven by 25
manufacturing that Boeing has initiated with the Indian well
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the relative availability of air services as compared to other modes of transport. This could be either in terms of low ticket prices or the number of available flight options to the customer. By analyzing these and many other drivers for India, we estimate a demand for 1000 commercial aircraft valued at $100 billion over the next 20 years. From a defense standpoint, a countrys motivation to purchase is driven by its need to safeguard its economic interests, protect its borders and combat terrorism. The Indian government has embarked on an ambitious fleet modernization drive, positioning India among the top 10 military spenders in the world today. Boeing estimates an addressable market potential of $31 billion in Indian defense over the coming 10 years. Markathon: How is Boeing planning to take on competition in the Indian market by other players especially Airbus? Dr. Keskar: The Boeing Company has focused on continuous innovation throughout the history of its evolution. The 787 Dreamliner will be the most advanced and efficient commercial airplane in its class and will set new standards for environmental performance and passenger comfort. Its exceptional performance will come from improvements in engine technology, aerodynamics, materials and systems. It comprises over 50% composites, an industry first, that makes it 15% more fuel efficient than previous generation aircraft. Another discriminator for Boeing is that our product strategy is based on a point to point transportation paradigm. Boeing believes that passengers would want to fly from their port of origin directly to their end destination with no intermediate stops. The 777 aircraft transformed inter-continental travel by offering nonstop travel to the US. Similarly, the 787-8 and 787-9 variants offer a range of over 15,000 kms non-stop. Point to point travel reduces overall travel time as well as the likelihood of lost baggage and missed connecting flights.
Markathon: In India, Boeing is mainly focusing on the defense and the government carriers and not on the private players. What are your opinions on this? Dr. Keskar: Boeing is committed to the growth of the entire aerospace market. We focus on both private and government carriers in civil aviation and defense. The close relationship between Boeing and India goes back over 60 years when India entered the jet age on the wings of Boeing commercial jetliners. Boeing jets continue to be the mainstay of the countrys domestic and intercontinental commercial fleets not only through the national carrier, Air India but also through established private players like Jet Airways and SpiceJet. As in other parts of the world, the efficient 737 aircraft has become Indias preferred choice for domestic and low cost flights. Jet Airways has one of the youngest aircraft fleet in the world and is dominated by Boeing aircrafts such as the 737 and 777. In addition, Jet Airways has also placed orders for the 787 Dreamliner. New opportunities for partnership with India have also emerged in the area of defense. In January 2009, the Government of India selected the P-8I to fulfill its longrange maritime reconnaissance and anti-submarine requirements. Boeing has a diverse portfolio of products on offer to India such as the combat-proven F/A-18 Super Hornet multi-role strike fighter, the C-17 Globemaster strategic-lift cargo aircraft, the Harpoon missile, the CH-47F heavy-lift Chinook helicopters and the AH-64-D Apache attack helicopters. We are also a leading provider of aerospace support systems and systems that enable Network-Centric Operations. Markathon: How do you see Indias potential as R&D and manufacturing hub for Boeing? Dr. Keskar: Indias technological prowess through the evolution of its 5000 year old civilization is world renowned. With over 380 universities, 11,200 colleges and 1,500 research institutions, India has the second largest pool of scientists and engineers in the world. Boeings belief in Indias potential for technology collaboration was reaffirmed when we opened our 26
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Research and Technology centre in Bengaluru earlier this year. This is only our third such centre anywhere in the globe outside of the US and will serve as a nodal point to further collaborate and grow our relationships with research institutes in India in the areas of R&D, Engineering and IT. The Indian Institute of Science (IISc) has been established as only one of the eight Boeing Strategic Universities worldwide and only one of the two internationally. In addition, several collaborative research projects are being undertaken with NAL, HAL, IITs and other leading public and private sector organizations in India. These projects span a wide range of aerospace technology from Computational Fluid Dynamics, Radio Frequency Identification (RFID) and computational electromagnetism to composites, manufacturing processes, high strength alloys and smart structures. We have formed an alliance with industry and academia to form an Aerospace Network Research Consortium (ANRC) to collaborate on nextgeneration wireless and network Boeing is also undertaking several high-technology manufacturing projects with Indian industry. These include both commercial as well as defense related work packages. Flight critical parts such as the floorbeams and flaperons will be manufactured by Indian companies for Boeing aircraft sold around the world. These components incorporate some of the latest technologies involving hybrid composites and are being used first time anywhere in the world. Another good example of the growth of the ecosystem is the recently started facility in Belgaum. Magellan and Quest together started a much needed sheet metal manufacturing facility and a precision machining facility. This is one of a kind facility and we believe is another important milestone in the growth of the aerospace ecosystem in India
Markathon: With so many Indian companies planning to enter in the aero component market, how it is going to help Boeing? Dr. Keskar: Boeing follows a collaborative model in its supply chain. Boeing aircraft comprise components manufactured by suppliers from all over the world, including India. Boeing is strategically working with its Tier 1 partners to grow the network of Small and Medium Enterprises in India. The objective is to enhance collaboration that will lead to development of a mature aerospace ecosystem in India. Such an approach will not only increase number of jobs and enhance Indias industrial output but will also make Indian manufacturing capabilities available for the benefit of the global aerospace supply chain. Markathon: Finally, we would like to hear about the scope of management graduates in the aircraft manufacturing industry. Dr. Keskar: One of the most important constituents of any industry ecosystem is the presence of a large and skilled technical and managerial workforce. This is especially a critical constituent for our sector given the relatively nascent stage that the Indian aerospace ecosystem is in. This rapidly growing sector offers tremendous opportunities for management graduates across various functional disciplines. Operational experts can help incorporate quality and reliability best practices into aerospace manufacturing. Supply chain and logistics specialists are required to help Indian companies get better integrated into the global supply chain. Business development professionals will help highlight awareness of Indian aerospace capabilities across the globe. And finally, finance specialists will be crucial to identify innovative business models to drive investments in Indian aerospace as well as to ensure that products delivered are in line with overall budgetary estimates.
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Markathon | February 2010
STORM IN A COFFEE CUP

An INTERVIEW WITH the Brand Strategy Specialist , Harish bijoor
Mr. Harish Bijoor is one of the most esteemed experts in the realms of Indian marketing. He is best known for his role as the General Manager, Marketing, TATA Tea Ltd and his innovative marketing strategies during the launch of TATA Coffee, which include printing ads on eggs and on papads; and knowingly hanging banners upside down! Here he gives his insights on both common and uncommon Indian marketing trends in the Hindu Business Line. Currently he is the brand strategy specialist and the CEO of Harish Bijoor Consults Inc.
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Markathon: Launching a brand is exciting and at the same time challenging. You created the successful TATA Coffee brand. Kindly share with us your experiences. Mr. Bijoor: Branding is an exciting realm to live within. There are different categories of branding. One is where you take a commodity and brand it. A commodity typically has no real and overt or covert differentiation at all in physical terms. Coffee is one such; as is tea and as is mud. This is the most difficult category to brand. This is a category that requires a great degree for consumer insight to leverage; a category that demands strategic differentiation as a key mind-set to possess. The second categories of products that can get branded are what I call quasi-brands. These are essentially categories that show some degree of differentiation between one commodity type and another and are easier to brand. Rice is one such. You have Basmati, Ponni, Nellore Fine, Sona Masuri and 356 other types. The category does however also require strategic insight of some merit to derive value. The third category is differentiated products. Here, it could be a mini fire-extinguisher for home use, or an egg-beater with a timer-device attached to it. This is an easier category to handle. The fourth category is the very unique product. Something no one else has. Nestls Milkmaid when it was launched was one such. This is the easiest category to handle of them all. The fifth category is services where again, you build a hierarchy of branding. I have been fortunate to have had the opportunity to work in the most difficult category of them all for a start. The experiences that I went through in this category helped me shape my psyche as a brand person. Working in the commodity category means groping in the dark. It makes you heavily dependent on consumer insight and indeed on the power and merit of personal judgment, which could go wrong many a time. I made many mistakes; expensive mistakes. But every one of them fashioned me to be a better brand person. I had an excellent super-boss who was the MD of Tata tea then. On brand-issues I was reporting to him direct, circumventing the many layers of management that typical organizations thrive with. This helped, as decisions were quick. The brand image for Tata Coffee was therefore cobbled together by the collective
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effort of all of us involved. Our objective was common: get Tata Coffee the kind of brand salience that Tata Tea had already cobbled for itself. I do believe we were successful in doing that. Markathon: What inspired you to venture into independent brand consulting? How different is the life of a consultant from that of a corporate manager? Mr. Bijoor: The inspiration came from working in industries that spanned plantation, FMCG and telecom for 18 years. There came a time when one wanted to check whether the success I had achieved was a bit of a flash-in-the-pan or was a reality. One wanted to check if I could survive without being in the umbrella of a corporate name. I wanted to check if there was anything that one could do add value and create wealth without being a corporate person. To an extent this move from being a corporate manager to being an ideas-entrepreneur was one to check out personal merit. After two decades of working for others, I wanted to check if I could do it on my own. I wanted to check if I could build an organization that could help nurture the dreams of others similar to me. It is a different life. I am not chasing targets given by others. Instead I am setting targets for others to chase. I am creating a team of people who breathe ideas and innovation, from one nostril each. I am creating wealth, not only for myself, but for my team of 89. Markathon: How does your firm approach a new assignment? Also we have seen many brand consulting firms flourishing in the last few years? What is your opinion on this trend? Mr. Bijoor: Brand-consulting outfits are aplenty today. The trend is good and bad at the same time. This is a tough business. Real merit is detected very early in assignments. To that extent, very few float up as the cream and most really reach a quick degree of incompetence from which they find it difficult to rise. My business is a build-operate-transfer mode business. This is a USP that helps. Typically we assess a project before it comes to us. We are a zero-solicit business. This means that we do not make pitches, do not do client-lunches, do not make networking calls, and do not have a website, a brochure or a PR outfit that sells
us. We have no Business Development Managers even. Everyone is a Senior Consultant who handles a project except one. The most incompetent of them all: I. We first assess a project and we charge a fee for this assessment even. Every hour anyone spends is billed, albeit at a different rate; a more modest rate than our consulting rate. Once this is done, we sit with the client for a joint due-diligence exercise wherein the project scope is listed out. We then assign operatives and commence work. We work on short term one year contracts, medium-term 3 year contracts and long-term 5-year contracts. We do not out-source work. Everything is handled internally. And this is a USP as well. We build strategy. We operate our ideas for the client for a pre-agreed period, and then hand over the project to the project management team of the client as per pre-agreed dates.
"Rural markets are nascent and innocent. Marketers need to open their eyes"
Markathon: You are the visiting faculty for rural marketing at ISB. What kind of branding strategy do you think is appropriate for Indian rural markets? Mr. Bijoor: Rural markets are different from urban ones. Rural markets are nascent and innocent. Marketers need to open their eyes and understand that rural marketing is a different kettle of pomfret altogether. It is important to understand insight and customize. This is exactly what I teach in my courses and this exactly what I speak about in the number of Talk sessions I deliver across corporate organizations in India and elsewhere. Rural is a mindset. Very few have it. In many ways, every talk session and every class of mine helps build this mindset and helps build rural marketing evangelists. The future of Indian marketing is really rural marketing. Branding that is bottom-up and not top-down works best in rural markets. It is important to understand and emote with the rural mind, mood and
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milieu before one embarks upon a rural marketing journey. Hang on! This is a subject that excites a lot of passion in me and I can go on and on. But this is not appropriate. Markathon: The Zoozoos campaign is a huge success in increasing the brand recall of Vodafone. Can such a strategy be replicated in the FMCG sector where brand recall is very less? Mr. Bijoor: No. I dont believe this can be done effectively. The clutter in FMCG is great. Further, FMCG offerings are reasonably pari passu and a bit too close to commodity offerings. Telecom is also getting close to that, but not yet, and hence one gets away with the ZooZoos. Markathon: With the IFRS adoption in India (due in 2011 and which makes brand valuation disclosure mandatory), the significance of brands and their your opinion on this? Mr. Bijoor: Agreed! This has taken time coming, but it is well nigh here. Good for everyone really; particularly businesses such as mine! management is scheduled to come of age. What is
Markathon: Kindly share your views on student initiatives like Markathon which throw light on the nuances of marketing. Mr. Bijoor: It is an excellent initiative indeed. I do believe there are only two types of people; the marketing person and the marketing person. Each one of us is either a marketing person who markets something or the other to someone else. Or each one of us is someone marketed-to. Therefore, Markathon is a valuable initiative. Does not matter whether you are a logistics person, an HR person, a Finance person or whatever, marketing is important for each one of you. Touch! who has something or the other
"I do believe there are only two types of people; the marketing person person."
Markathon: What advice would you give to budding managers who aspire to become successful brand consultants? Mr. Bijoor: Dont! Dont enter this business till you have slapped on very valuable industry experience. I recommend a full 15-year engagement in industry before you take the plunge. Entering the business early spoils you. Burn-out is quick. And the glass-ceiling is out there, just above you.
and
the
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Vartalaap
An Interview with President, BMW India
Peter
Kronschnabl,
Mr Peter Kronschnabl, President BMW India has been the face of BMW in India and has led them to the Numero Uno position in the luxury car segment in just three years, overtaking Mercedes which had been firmly entrenched as the leader in the Indian market. Here we quiz Mr. Kronschnabl on various issues such as the potential of the Indian luxury car market, the promotion strategy of BMW India & its brand positioning.
Markathon: What is the perception of BMW about the luxury appeal of India? What is the potential of luxury car market in the country? Mr. Kronschnabl: In absolute terms, India cannot compete with other high-volume single markets yet. But the future belongs to India. If you want to benefit from the dynamics of the Indian market later, you need to act today. This is what we did. Our commitment to India was among the strategic decisions that had to be taken right away. According to our approach Production follows the Market, we took a bold step in our Asia strategy in 2007. We established the BMW India Headquarters in Gurgaon (NCR), a Central Parts Warehouse in Mumbai and the BMW Plant Chennai in Tamil Nadu. In medium term, BMW India has employed
around 200 people; up to 600 additional jobs have been created in the dealer and service network. 2007, 2008 and 2009 were demanding years for BMW India and, at the same time, the most successful market entry for BMW in any country recently. Various activities initiated during this period have provided BMW India with a solid basis and developed a strong foundation. We thus secured an important option for the future growth of BMW Group. We made great strides in implementing our strategy, and this gave us a significant competitive edge that provided us with a clearly formulated vision. Our goals were clear, and we had to be consistent to realize them. Our business activities are, and will remain, focused on the long term. The main trends that are relevant to our business
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- such as the demand for mobility and the desire for differentiation - will remain unchanged. Markathon: Where does BMW feats in the consumer psyche and what is the kind of brand attitude it has developed? Mr. Kronschnabl: BMW has grown over years and remains as a symbol for dynamic and forward striving people. BMW is dynamic, challenging and cultured with the mission to deliver pleasure Sheer Driving Pleasure. At the heart of the BMW brand is the desire to spread joy. This is a promise we make to our customers, and we aim to deliver on this promise every time the customers come in contact with BMW. Our understanding of joy has multiple dimensions: joie de vivre. Joy is the heart and the driving force behind BMW. On the back of this three-letter word, we built a company, independent of everyone, accountable to no one but the driver. We do not build cars. We are the creators of emotions. We are the guardians of ecstasy, the thrills and chills, the laughs and smiles and all the words that cant be found in a dictionary. No car company can rival our history, replicate our passion or see our vision. Innovation is our backbone, but Joy is our heart. We will not stray from our three-letter purpose. We will nurture it. We will make Joy smarter. Markathon: BMW has become the numero uno luxury car maker in India overtaking Mercedes. Can you throw some light on the promotion strategy of BMW in India? Mr. Kronschnabl: Even though the last few years were very challenging, the main trends that are relevant to our business - such as the demand for mobility and the desire for differentiation will remain unchanged. In 2010 everything we do, we do with conviction. We have the right ideas, as well as the entrepreneurial courage to make those ideas a reality. This has been our duty and our mandate since day one. In 2010 we expand the pillars of our India strategy by embarking on an aggressive product offensive and rapid market expansion.
Markathon: You are known for aggressive approach which turned around BMWs portfolio in India. Whats the take on your leadership style? Mr. Kronschnabl: Today, I am proud to announce that BMW India is the number one in the luxury car segment in India and portrays a symbol for dynamic and forward striving people. 2009 has not been an easy year for the automotive industry and that applies equally to BMW India. Who would have thought at the start of the year that we would see so much turmoil in the auto industry within a matter of months? Consumers were naturally concerned and their lack of confidence reflected in reluctance to buy new vehicles. BMW India was faced with challenges no less than any other automobile manufacturer and was confronted with strong pressure from the beginning of the year. Seen in this light, a distinctive course defines not only what you do and how you do it, but also what you do not do. If you concentrate on your strengths and anticipate the challenges of the market, novel solutions can be found. The difference is decisive. It is the difference between being pushed and making your own way, between imitating and pioneering, between quick results due to short-term actions and the lasting success generated by your own strength. We decided to stand our ground in a fiercely competitive environment with new ideas and the strength to promote our new products. We were prepared to meet the challenges head on to ensure our companys success. These qualities enabled us to weather effectively such stormy conditions and continue to invest in our future. We were able to anticipate trends and be prepared for the future and that gave us an edge. Despite all challenges, BMW India delivered strong operating performance in 2009. With a carefully planned and successfully executed market entry strategy, and consistent sales performance, BMW India has achieved market leadership in the luxury car segment in India.
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Markathon | March 2010
The Price is Right

An interview with the renowned Marketing professor Jagmohan s. Raju
Professor Jagmohan S. Raju is the Joseph J. Aresty Professor; Marketing Department Chairperson, Wharton, University of Pennsylvania & Executive Director, Wharton Co-Sponsorship of Indian School of Business. Besides being a wonderful teacher, he is a renowned researcher as well. His research interests include issues regarding pricing, retailing, sales, promotions and coupons, private labels, optimizing channel contracts & competitive strategy. Markathon: Engineering from IITD, MBA from IIMA, Ph.D. from Stanford University, Assistant Professor at UCLA and now the Chairperson of the Marketing Department at Wharton, University of Pennsylvania. This journey would be the ultimate dream of many youngsters of today. Please share with us the experience of this wonderful journey. Prof. Raju: My father was a professor and my mother taught in a school. We were not rich but my parents gave me values that were priceless the importance of education, working hard, and helping others who were not as fortunate. I left home to study in a boarding school, Punjab Public School Nabha, at the age of 10, from there to IITD, IIMA, and Stanford. At each of these institutions, I formed friendships that have lasted a life time. Even today, I am in close touch with friends from
my boarding school and we are like brothers. Markathon: The cost pressures are very high in emerging markets like India and there is increasing pressure to compete on cost. Companies have garnered market share by pursuing a low pricing. Do you think such pricing methods are sustainable in the long run? Prof. Raju: Independent of what prices you charge, it is extremely important to be cost competitive. Some companies use their lower costs to charge a lower price, and others use the extra margins that lower costs give to build a brand and build market share. Hero Honda is a good example of this. Markathon: With the booming middle class in India, purchasing power has been increasing manifold. What do you think will be the most important factor in capturing maximum market share: Advertising, competitive pricing or quality? Prof. Raju: Despite the rise in incomes, the Indian middle class consumer is extremely value conscious and is one of the best at making price-quality trade-offs. To some extent, the consumer has no choice. We spend
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Markathon | March 2010
Independent of what prices you charge, it is extremely important to be cost competitive.
more on food as a percentage of our income than say a consumer in the US. Therefore the Indian consumer spends more time in making decisions and evaluates products carefully. When buying a consumer durable such as a TV, the Indian middle-class consumer thinks of it as a purchase for a lifetime. But the consumer also has limited income. Therefore, the need for being value conscious. Markathon: With the rise of the Internet, there is no information arbitrage for companies to leverage. In this context how difficult do you think it is to pursue pricing of products and services? Prof. Raju: Actually, one could argue exactly the opposite. With the ability to disseminate information inexpensively, companies that truly have a better product or service can communicate the benefits more easily to the customer; the customer can compare one product with the, and be willing to pay a higher price for a better product. You are right - it is now harder to fool the customer, but then it never paid to do that any way in the long run. Markathon: With your extensive experience in both industry and academia, do you perceive any gaps between the marketing course curriculum and the corporate world? Prof. Raju: There are a few areas where the academic curriculums lag practice, and there are some areas where the practice is far behind. However, the good news is that at least at Wharton, there is a very close interaction between the two. We learn from each other. Formal mechanisms have been put in place for the two to interact and we do interact sincerely. I work
with many
companies
to improve
their pricing
decisions, and during that process, learn what their challenges are. Then we develop models and methods to help them make better decisions. Markathon: Finally, what are the most important skill sets and qualities that management graduates need to develop which will prove critical to their success in global business environment? Prof. Raju: I would list the following: 1. Use your MBA course time as a gift to learn but do not assume that the learning process will be over when you graduate. It has just begun. One of the roles of good education is to give people the power and aptitude the teach themselves. 2. Maintain the friendships that you build at your school. These friends will be your best guides as you all grow together. 3. Think of life as a marathon and not a sprint. Most of you will work for over 50 years after you graduate think of what the world was like 50 years ago. The world in 50 years will see more change than what we saw in the last 50 years. These changes will bring opportunities that we cannot even visualize today. To take advantage of this: a. Be there. Take care of your health. Have a happy family life. b. Be open to change adapt and develop new skills c. Hire people who are better than you and learn from them. d. Maintain a positive attitude e. Try to help one person every day.
Vartalaap
Markathon | Apr-May 2010
An Interview with G. Ramprasad, CEO, Tata TELESERVICES LTD.

Markathon: Share with us some unforgettable
moments in your corporate journey right from being a Branch Sales Manager at HUL to now being the CEO of Tata Teleservices Limited. G. Ramprasad: One of the most unforgettable
moments was receiving a call from my ex boss from HUL, a full one year after Id left the company. He thanked me for the system and process improvement initiatives Id started off, which resulted in that region achieving superlative performance! This vindicated my strong belief that a managers worth is truly known when he/she is not on the scene, but the legacy is paying rich dividends for the business. In Parryware, where I joined in 1999 as Head of Marketing, a key product, Cascade Range of sanitaryware, was declining. It was a significant contributor to the profitability of the business and newer, cheaper competitors were making a lot of headway. There was a lot of clamour in the system to stronger and more sustainable platform than just taking the easier route of chopping costs and dropping price. Yet another unforgettable moment has been the recent Tata Teleservices resurgence. In Tamilnadu, Tata Indicom has had a sea change on the customer services front. From an operator which was considered a laggard, it has bounced back over the past one year or so to attain a leading position. Even though the market position is still below potential, the change on the customer service front signals a clear shift in trajectory. Here, the principle has been when all else seems lost, latch on to the straw of customer service, which can turn into a lifeline and, in due course, a bridge to success. This is especially applicable in a services business.
Markathon: Telecom sector is presently the

sector to be present in and there are numerous players entering the fray. Is there a demand for so many players? Or is it just a temporary bubble? G. Ramprasad: The telecom business still has a lot of
juice! India is still one of the relatively lower penetrated markets at about 50 %, even though its got the second largest number of wireless connections in the world with over 600 million subscribers (and growing by about 15+ million per month!). Further, broadband is still only 8.75 million and thats a huge area waiting to explode. Already India is very big on mobile internet traffic, next only to the US. These figures indicate the potential thats still waiting to be tapped and also the way the future of this business will move. From a preponderantly voice dominated revenue, there will be a shift towards data and value added services. This has its own momentum and will drive the business in a different way. Government departments have started a lot of e-governance initiatives, which will entail the use
cut costs and thereby reduce price. However, Cascade was then relaunched with better features. The better features meant HIGHER costs and the price was also taken up accordingly. Backed by a strong communication support, the relaunch was a resounding success and Cascade was once again put on the growth path. So, the principle of investing back in a product and improving the customer benefits (also called features) and charging a higher price for this, is a
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Markathon | Apr-May 2010
of internet in a much bigger way and this will be a focus for telecom companies.
Markathon: Tata Indicom has highlighted the

advantage of voice clarity in its ads stressing upon of the Advanced Digital Network. You have also tried to connect to people through Suno Dil ki Awaaz campaign. How did you wish to position Tata Indicom in this hyper competitive market and how successful have these campaigns been in doing so? G. Ramprasad: In the current scenario where most
telecom networks are badly congested, Tata Indicoms excellent network is a strong advantage. Over the past five quarters, Tata has been rated the least congested network by the Telecom Regulatory Authority of India (TRAI) through independent surveys. Going forward, Tata Indicom will be the brand for the Prepaid Mobile Services, Tata Photon for the Data services and Tata Walky for the fixed wireless category. This will enable the business to address different segments of customers and different market opportunities through clearly positioned brands.
fast and this is an important driver of mobile usage. Mobile is now used for banking transactions, information exchange, and even entertainment (mobile television is a popular service from Tata Photon). Customers are willing to pay for all this as its literally helping them live life by pressing buttons! From a financial angle, better VAS penetration can make the difference between profit and loss in a hypercompetitive market
Markathon: Tata Photon data cards have also

been a success story for you. What is your assessment of the potential of wireless data cards market in India? G. Ramprasad: Tata Photon + has been a huge success
and coupled with the boom in the sale of laptops, more and more people are opting for mobile internet connectivity. CDMA technology lends itself to superior data access and this makes Tata Photon + a preferred choice for those looking for mobile internet access. Broadband internet access has been limited by the viability and feasibility of laying wires. Hence wireless technologies will certainly play a key role in India for the burgeoning requirement of internet access.
Markathon: To what extent do you see value

added services as a significant factor in consumers decisions of selecting a mobile service operator today? G. Ramprasad: Without doubt, Value Added Services
are critical in a consumers decision to select a mobile service operator. The proliferation of smartphones is testimony to this. The rapidly falling costs of mobile handsets and the simultaneous increase in the handset features will aid this process. Technologies are also evolving rapidly. Social networking is catching on very
Markathon: You have recently joined hands with

Olive, Blackberry and Samsung for promoting Tata Photon. What has been the thought process behind them and what future growth strategies are in the pipeline? G. Ramprasad: As
mentioned in the earlier point on Value Added Services, its imperative for a
"Mr. Ramprasad is the CEO of Tata Teleservices (Chennai Area) and is a seasoned campaigner across different industries such as Consumer Goods Industry, Broadcast Media Industry & Telecom Industry. He has held a number of prestigious posts prior to this including Executive Director, EID Parry India Ltd, President TI Cycles & CEO South Channels with Zee network. His specialties include institutionalizing systems & processes and turnaround and expansion of business plans"
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markathon | august 2010
From the Hallowed corridors

An Interview with Professor Sunil Gupta, Head of the Marketing Department, Harvard Business School
In this months Vartalaap we have a tete-a-tete with Prof. Sunil Gupta, the Edward W. Carter Professor of Business Administration and Head of the Marketing Department at Harvard Business School. He enlightens us on the importance of customers, their value to the firm and explains to us his concept of Customer Lifetime Value, which helps in the customer based valuation of a firm. He also shares his views on the power of social media marketing. So go ahead and hear it from one of the best in the world!!
learnings that have played a defining role in your journey.
Prof. Gupta: The journey from IIT Delhi to Harvard Business School has been amazing. Soon after IIT, I joined IIMA and then worked for two years at HMM marketing Horlicks and Boost.
Markathon: An engineering degree from IIT Delhi, MBA from IIM Ahmedabad and PhD in Marketing from Columbia University to Edward W. Carter Professor of Business Administration and Head of the Marketing Department at Harvard Business School. Please share with us some insights and
However, during these two years I felt uncomfortable with the way marketing decisions were made. My marketing director was a scholar at heart and he encouraged me to read research articles to dig deeper and try new things at my job. This encouraged me to apply for my PhD at Columbia. At that time I was not sure what a PhD was all about. I assumed it was an advanced MBA that would allow me to become a consultant and I almost ended up being one. But my advisor convinced me to try academia for a few years and I am eternally thankful to him for this suggestion.
I am absolutely convinced that life is a series of coincidences and it does not follow a fixed plan. The trick is to be open-minded and take advantage of the opportunities when they arise. Based on my personal experience I encourage my students and my children to follow their passion rather than simply following the crowd. My basic belief is that it does not matter what you do so far as you are the best in that field.
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customer base, and we can estimate the value of its future customer base. Add these two and we have a fairly good estimate of the firm value.
At Harvard Business School we have a strong focus on bridging the gap between academic knowledge and corporate practices
Markathon: Your concept of Customer Lifetime Value (CLV) serves as the building block of Customer based valuation of a firm. It assumes the profit margins from a customer and the retention rate of customers of the firm to be constant. How applicable this model is for companies having a wide range of product categories and decreasing customer loyalty, especially in developing markets like India?
Prof. Gupta: My interest in Customer Lifetime Value (CLV) and customer-based valuation of firm developed during the height of the dot-com days in late 1990s. At that time many new economy companies like Amazon and eBay had sky high stock prices. It was hard for finance experts to value these firms based on traditional valuation methods like discounted cash flow or P/E ratio since there was no cash flow to discount and there was no earnings or E! My basic premise in developing this approach was that firms generate cash flow and profits from selling products to customers. So if we can estimate the value of one customer of Amazon as, say $100, and we know that Amazon has 30 million customers, we know that the value of its current customer base is $3 billion. Next, we can build a model to forecast growth of Amazons
As a starting point for estimating these models I assumed constant margin and constant retention rate, which implies that if a firm has a retention rate of 90% then it will have 90% of its original customer base after year 1, 0.9*0.9 or 81% by end of year 2, and so on. In other words, it assumes an exponential decay in a customer cohort. Clearly this was a simplifying assumption. We later show that it is straightforward to build complexities in the model where margins and retention rates change over time. So the basic concept with some adjustments in the model and its underlying assumptions can be used for Indian companies as well.
Markathon: In your book Managing Customers as Investments, you have proposed to create a business profit tree for finding the key customer objectives as a part of customer-based planning exercise. Can you please elaborate the ways in which this profit tree helps in taking decisions on investment on new & existing customers? Prof. Gupta: A medical analogy perhaps best illustrates the fundamental idea here. A doctor does not prescribe you a medicine unless he has run tests and diagnosed the root cause of the problem. Yet, I have seen that too often companies are quick to allocate their scarce resources to a specific task or program without identifying the key bottleneck or the main problem. The business profit tree is one simple
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Markathon: Majority of the companies today reward their sales team on the basis of new customer accounts. But, your analysis shows customer retention to have the largest impact on customer profitability. What do you think is the reason for such company practices and how do you see the same changing in near future?
way to break down the big problem into its potential causes.
Prof. Gupta: Part of this is cultural. We all like to win new territories, get new clients, gain market share and launch new products. It is more fun to do this than defend existing base or tinker with old products. The other major factor is that it is easy to measure and give credit for a new
Customer-based strategy recognizes two sides of customer value:
THE TWO SIDES OF CUSTOMER VALUE
The only way to change this behavior is to design new metrics that companies can monitor and use to reward their managers and sales teams. In the U.S. many companies have already embarked on this journey and are building more comprehensive measurement tools and compensation systems. I should note two caveats. First, complex metrics and opaque reward systems can cause confusion and send mixed messages to the sales force. So, one needs to be very careful in designing them. Second, a focus on customer acquisition is not necessarily bad in some situations. For example, in new and
account to a sales person. It is much harder to say if a current customer stays with the company due to the efforts of the sales person or some other factors.
Value which the company provides to the customers(Value to customers) In terms of products and services Value which the customer pays back to company(Value of customers) In terms of profits over time As shown in figure this divides customers into four sets:
Vulnerable Customers: Most loyal ones, but at the same time highly exposed Free Riders: They exploit the relationship with the company to the maximum
extent to competition
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Star Customers: A true win-win situation Lost Cause: Company should reduce investments in this set of customers or even drop them if it cant increase profitability from them
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Markathon: In your opinion should a company facilitate customer learning? And how does customer learning help in the long term retention of the customer?
growing markets such as the mobile phone market in India, it is important to establish a strong presence by acquiring a large customer base quickly. The CLV concept simply suggests that it is also important to focus on the quality of customers you acquire, not just the number of customers.
acquiring new customers. So many companies now help customers learn and understand their own usage behavior to avoid such fees. In the end you need to strike a balance between the value you provide to customers and the profits you generate from them. If the equation tilts too much in one direction or the other, things start going wrong. Markathon:In your opinion are differentiated pricing strategies sustainable in the longterm and do they provide a source of competitive advantage to a company?
It is also useful for companies to help customers understand their own usage behavior even if it has a short-term negative impact on a firms profits. Mobile phone carriers in the U.S. were notorious for profiting from consumers overage fees fees that consumers pay when they use minutes over and above the free minutes allowed under their monthly mobile plan (most U.S. customers do not use pre-paid service). These fees result from consumers not being able to estimate their own monthly usage behavior accurately. However, when consumers get their monthly bill, they are outraged and switch carriers. Over time, mobile carriers realized that the short-term benefit from these fees is small compared to the cost of losing customers and the associated cost of
Prof. Gupta: It is certainly good for a company to encourage customers to learn about its products and services. Research studies show that when users learn and get comfortable in navigating the web site of a company, such as Amazon, they are very reluctant to switch to a competing site even if it is a mouse click away.
Prof. Gupta: Absolutely. Differentiated pricing or charging different prices to different customers for the same or slightly different products requires a deep understanding of customers, their needs and their willingness to pay. Airlines are one of the prime examples of such price discrimination. One study found that the price of a Coke bottle varied by as much as 3 times in the same city on the same day depending on where it was sold. Interestingly, the price was higher at a vending machine placed at the entrance of a train station compared to a vending machine placed at the exit point of the station.
Companies that design software or information products usually build full version of their product first and then deliberately disable some functions (e.g., student version of a software) to
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Current technology allows companies to get more and more information about customers that allows them to customize products and services to individual needs and therefore price its service differentially. The competitive advantage to firms will therefore come from a continuous and better understanding of customers.
sell it at a cheaper price.
Markathon: In your article on A Model of Consumer Learning for Service Quality and Usage, you argue that the customers make most of their learning in the first few service encounters and therefore these needs to be managed strategically. Could you give an example of how the first few service encounters should be managed and should they necessarily different from the later encounters? Prof. Gupta: AT&T recently changed its pricing policy for smartphone users. Unlike its previous plan where users of iPhones or Blackberrys could use unlimited data for a fixed monthly fee of $30, consumers now have to choose between two plans: 250 MB of data for $15 per month or 2 GB of data for $25 per month.
Prof. Gupta: Privacy has already become a major issue for online social networks. In November 2007, Facebook started its Beacon program to track its users visits to external websites. Mark Zuckerberg of Facebook argued that it would provide valuable information to its users since people could benefit from knowing if their friends bought, for example, a dress from Bloomingdales. However, Facebook never got users permission to track their website visits and the program created a huge controversy and was later retracted.
Markathon: Will privacy concerns be a major factor in the further development of online social networks and will the customer satisfaction with these networks be affected due to these concerns?
for companies. In fact AT&T is doing exactly this by providing tools to consumers to monitor their usage.
Most consumers are not sure how much data they might consume but they will learn as they start monitoring their monthly usage. Our research article shows that this learning is quite rapid and it is in the best interest of companies to help consumers in this process since this leads to a win-win situation: customers are less frustrated with unexpected charges which lead to higher retention and better long-run profits
There are ongoing discussions and debates about this issue where companies claim that getting consumers personal information will help them provide more useful products and ads to them, while privacy experts fear that private information can be easily misused. I think this debate will continue in the future and probably intensify as technology becomes more sophisticated in tracking our location through mobile phones, or our preferences from our website visits. Markathon: Has the growth of networks like Facebook reached a plateau? If not where are the next 400 million users going to come from?
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Markathon: How will the rise of these networks influence marketing trends and will it cause a paradigm shift in marketing principles?
Prof. Gupta: Currently there are almost 5 billion mobile phones used in the world. As social networks such as Facebook intensify their presence in mobile, they are likely to gain a lot of new users, especially in emerging markets, who never had access to Internet.
inherently involved in implementing any decision. Practicing managers, on the other hand, are very good in exactly those issues where academics lack knowledge. In other words, the two complement each other very well.
Markathon: With such an extensive academic and corporate experience, what do you think are the major differences between academic knowledge and corporate practices? Could you suggest ways to bridge these gaps?
Prof. Gupta: At the risk of making a sweeping statement, I think that academics are generally very good in creating new conceptual frameworks and coming up with broad generalizations by connecting the dots across companies and industries. However they typically lack a good understanding of the organizational complexities, specific situation or context of a company, and the people issues
markathon
Prof. Gupta: Social networks are already having a huge impact on how consumers obtain information about products and how they make decisions. Consumers use Facebook Connect to learn what their friends are buying. They use user-generated sites such as Trip Advisor to learn other users experiences with hotels before selecting a hotel. Marketing practices have to evolve with this changing consumer trend where word-of-mouth and viral campaigns become more important than mass marketing.
At Harvard Business School we have a strong focus on bridging this gap where faculty are encouraged to be in touch with management practice through case writing and field research. We also actively recruit leading practitioners to become Professors of Management Practice to encourage this dialog. There is an increasing need to bridge this gap and I hope moreschools take a proactive action in this direction.
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markathon | sept-oct 2010
Marketing to the global customer

An Interview with Mr. S. Raghavan, Sr. VP & HEAD, INDUSTRY PRODUCTS & MACHINERY OPERATING COMPANY Larsen & TOubro
In this months Vartalaap we feature Mr. S. Raghavan, Senior Vice President; L&T who has been with the group for the past 38+ years. He joined in one of the group companies that manufactured Exploration drilling Machines and later traversed through a number of other units. Along the way he has been associated in various functions such as Supply Chain, Personnel and IR, Manufacturing, as Head of independent group companies, Projects, Business Planning, Corporate Strategy, Head of Business operations of diverse nature etc.
Mr. Raghavan: I have been working with Larson and Toubro for the past four years and have headed Machinery Business (Construction and Industrial Machinery) and Industrial Products (Valves, Welding Products and Distribution of Cutting Tools) in the past and currently working as the Head of Industrial Markathon: In B-schools, we often coProducts and Machinery relate marketing with consumer Operating Company goods. Please throw some light on the In capital goods, the which has an annual importance of B2B marketing in the marketing efforts begin turnover of around 2100 business world. Cr and an employee much before even the strength of over 2500. In need recognition as in Mr. Raghavan: In my opinion, there is addition to that I am also the case of any Business not much difference between an internal Board member consumer goods and non-consumer Relationship of L&Ts Construction goods. Whatever goods are consumed Management by our customer are consumer goods Machinery Business with a turnover of around Rs.3000 and whatever services that we offer to him are consumer services. Since we are Cr and 1500 employees and more into Capital Goods and Industrial Goods I L&T Finance Limited, a wholly owned subsidiary of L&T. will explain on that front. Markathon: In your opinion, how has L&T evolved as one of the most successful corporate brands in India?
Markathon: Could you please enlighten us on the experience you have had in the various positions you have held within the company?
Mr. Raghavan: Right from L&Ts inception, the founders Mr Henning Holck Larsen and Soren Kristian Toubro emphasized on Values in the company. This value centered approach along with its customer-first approach has largely been responsible for L&T evolving as an excellent corporate brand in India. L&T treats its employees with the highest regard and respect. It is this realization that employees create all our values and profits which have helped L&T maintain its excellence. Looking out for growth opportunities constantly has been a major contributor to L&Ts success. We have always focused on a Build India approach and ventured into core infrastructure services for its manufacture and projects businesses. These elements together have made L&T the excellent brand that it is today.
In capital goods, the marketing efforts begin much before even the need recognition as in the case of any Business Relationship Management. Our sales staffs reach out to all corners and scout
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All our sales managers have communication excellent skills and skilled at articulating ideas. They provide professional advice to the customer about the risk and returns on a particular venture on the basis of their excellent analysis of cost-benefits, owning and operating costs of the equipment. Since the products that they market are based more on aesthetics rather than the esteem value, the initial price, quality, reliability, resale-price for the equipment, owning and operating costs, life-cycle costs etc. play an important role in deciding the B2B customer. We tailor our efforts to these ends. Markathon: L&T represent the success story of India to the world. What factors, in your opinion, drive its growth in the international stage?
for potential entrepreneurs. They educate and advise them on possibilities of commencing an enterprise. The enterprise could be a small contractor kind of activity, a repair shop, an agency to peddle our goods such as welding consumables or cutting tools. On the other hand, if our customer is a large corporation then our task is reduced since the customer can himself decide on buying our product against the multitude of choices.
impressed by our approach, manufacturing and project execution processes and word quickly spread that here was a company which could deliver on par with global companies and perhaps at Indian costs. Due to logistics problems we restricted ourselves mostly to the projects in the Middle- East and other neighboring countries but in case of highly sophisticated equipment we supplied to all discerning users in US or Europe or China. Presently our annual international business accounts for 17% to 20 % of the turnover. In addition we have also set up manufacturing presence in the Middle East, Malaysia and China.
In some of our products particularly the Heavy Engineering and Projects we had to obtain international certifications. When the certifying agencies and vendors visited us they were highly
Mr. Raghavan: L&T realized that our Indian customers must get the best in class products and services at a global benchmark, thus leading to our plans for growth. Obviously we cannot do this unless we physically export to other countries and this drove us initially to the neighboring countries and later to the discerning West.
Mr. Raghavan: In the first place it is not vastly different except in the customer perception of values that he looks for in products. In the West, in many Industrial Goods, the daily utilization is seldom for more than 8 hours while in India it is at least for 15 hrs. Obviously when a Western customer uses the same item for say 2 years he does not mind for paying for any after sales activities. In India the customers use such goods for the same number of hours in less than a year and hence loathe to pay for any service activity in less than a year! For example an American Ag equipment manufacturer was taken aback when they realized that the equipment would be used for 1000 hours and hence any warranty for 1 year would mean really for a 3000 hour usage; in the USA the same equipment would probably clock 3000 hours in 10 years! They had to take a totally new approach to designs in order to sell in India.
Markathon: Can you throw some light on the current B2B marketing scenario in India and how is it different from what is being practiced in Western countries?
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Another area is the abuse factor in India; in the West they take for granted that goods would not be overloaded or used till destruction; they are used to consigning any equipment that has been used for a reasonable period to the scrap-yard but in India such equipment needs to be supported and serviced for a much longer period. These factors call for a highly customer-focused service organization that caters to after-sales service far superior to what one sees in the west and on top of that, a 24/7 approach as Indian customers tend to use the products 24/7!
Mr. Raghavan: Technology and analytics are extremely useful tools in meeting the exact demands of customers. While the products are often used till destruction, it is no longer the first user that does this; instead the product often changes many hands and the first user quickly replaces the product with the latest state-of-theart product that keeps pace with global technology trends. Analysis of the use of the equipment and tracking of actual utilization vs.
Markathon: In this information age where organizations look forward to building relationship with the partners, how do technology and analytics help in customer relationship management? We would also like to know your opinion on unconventional methods like social media in promotion of products and services?
So far we have not used much of social media in promoting products and services but maybe we should consider the same. In one of our products Microfinance (as part of our Finance subsidiary) we have already started this in a small way and results have been very satisfying. Markathon: What advice would you give to budding managers specially those who are preparing for a career in the marketing domain?
apparent running hours (not necessarily a barometer of productive use) helps a long way in making the customer realize the advantage of technology and analyses. These days we are even capable of installing a GPS tracked analytic tool on machines that we supply and often surprise the customer of the benefits of better performance vis-vis the competition. The customer is delighted.
Mr. Raghavan: There are just two mantras in marketing Customer and Quality First! Building relationships with the customer is a lifetime endeavor and therefore never attempt to deceive or trick them. Customers never forget; wherever they go their memories of our good deeds and ethical and transparent transactions live with them. Wherever you are fight the customer battles within your organization; it pays in the longer run.
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markathon |november 2010
An Interview with Mr. Kiran Khalap

Brand consultant, author and co-founder of Chlorophyll
In this month's Vartalaap, we have with us Mr. Kiran Khalap, co-founder of Chlorophyll which is India's first end-to-end brand consultancy firm. Mr. Khalap started off his career in Lintas as a trainee copywriter before moving on to Clarion advertising where he eventually became the company's first CEO and CCO (Chief Creative Officer). He has been the recipient of the prestigious Ashok Jain Award for Public Service advertising and also is a published author. In January 2010, Mr. Khalap was chosen as the Chairman of the Brand & Marketing Advisory Council to the prestigious and challenging Nandan Nilekani-led Unique ID Project of the Government of India. He shares with us his unique perspective about the world of branding. Markathon: You juggle three passions diverse passions of yours play a role in motivating you to start out your own venture? Mr. Kiran: The venture started as a reaction to all that seemed not right (a very nave view perhaps!). With advertising as a profession, where I had spent 16 years of my working life (1983 to 1999), I needed a new way to utilize all that I had learnt-a way that was less selfobsessed, less ego-driven, more objectives-obsessed, and more results-driven. Thats how we started chlorophyll, Indias first brand consultancy. There were design shops before chlorophyll, but no brand consultancy. Markathon: If you were asked to choose one defining moment of your life what would that be? Mr. Kiran: It was a very unusual setting. I was in a local train running on the delta of steel tracks in Mumbai and was reading a book called Talks and Dialogues by J Krishnamurti. I had read it twice before. But that day, in that dimly lit second class compartment, there was a white light inside my head: I saw how our thoughts and memories create a division inside us and outside us, and how one can discover an awareness that is untouched by our thoughts. Nothing in life was the same after that.
In real life there is no one right answer... look for the second or third answer in every situation."
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vartalaap Markathon: ideantity & litmosi are two of chlorophylls newest and path breaking offerings. What was the thought process and reasoning that went into the creation of these two tools? Mr. Kiran: Good question! Thanks. As the phrase goes, chlorophyll came from the wrong side of the tracks: We were not set up by sexy, award-winning designers, but by a band of holistic thinkers who were committed to an idea of what brands meant. So we created chloropathy: a way of looking at brands (nouns) and branding (verb) that we believed was uniquely ours. That is why on chlorophylls 10th birthday, we decided to go public with our beliefs and recorded our perspectives on the difference between the complexity of the design world and the simplicity of communication. For example, there is a lot of technical explanation about the use of colors in logos (Wipro is one of the most amazing in this regard), that taken out of context, makes no sense. ideantity attempts to clear the air using data rather than emotion. litmosi is the result of our consistent work with 50 corporate brands (as opposed to product or service brands) since 1999. It is focused on CEOs of SMEs who are: committed to growth have realized that the organization has grown beyond their human footprint need to substitute themselves with a set of values We believe its the worlds first corporate brand alignment tool. Markathon: Branding is considered to be the most effective way for a company to differentiate itself from the crowded market place and off late the branding bug has caught on. Using terms such as brand or brand consulting seems to be the in thing and one gets the feeling it is being
markathon |november 2010 overused and misplaced at times. Whats your take on this? Mr. Kiran: I agree with you 100% that the word brand is being abused and misused. Everybody from signboard printers and logo designers to advertising and PR agencies offer branding. Closer investigation reveals that 99% of the time they refer to some form of communication, whether a logo or a mass media ad. Branding is about making hard sacrifices so that the business is aligned to an unchanging direction, not about spouting philosophy through clever brand lines or about creating a spiffy logo. Markathon: Brand voice -the written content used across all stages in the branding exercise is an important cog in the whole process of branding as such. For example it is said that McKinsey has an authoritative tone, Southwest Airlines is friendly, Virgins being tongue-in-cheek and so on. But these examples are few and far between. More often than not this important aspect is overlooked by major companies. Why do you think companies miss out on this aspect? Mr. Kiran: Even before brand voice (guided by brand personality) comes the definition of Who the brand is, what we refer to as the Brand Core, defined as an unchanging idea. You can have a Mahatma Gandhi and Nelson Mandela with the same unchanging core (belief in Satyagraha) but with dramatically different personalities. Virgins cocking-a-snook is a personality trait, what drives the business is the belief in contrariness: zig when the world of business zags. Why do companies miss out on these aspects? Because they believe business is only about tangible assets and EBITDA, while if you look at the data in books like The Living Company by Arie de Geus, you quickly realize that a company is a community of human beings held together by defined values.
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markathon |november 2010
Vodafone
Bank of Baroda
Union Bank of India
Markathon: Rebranding efforts sometimes end up alienating the existing loyal customer base and confusing other stakeholders such as the employees, owners themselves, suppliers etc. What do you think is the reason for this and what could possibly be done to ensure such a thing does not happen? Mr. Kiran: The confusion in the heads and hearts of brand owners reflects in the heads and hearts of stakeholders. Vodafone is the only worldwide example I know of a service that has changed brand names three times, Max touch to Orange to Hutch to Vodafone, without losing customer loyalty. This is an amazing example (you might say most of it is driven by lack of number portability, but this argument does not work as well with other brands) of a brand not changing despite its name changing. Stakeholders need to experience what has changed and they should understand why the brand has changed, only then will they not be confused and stay with the brand. When Bank of Baroda changed its logo, it changed its offerings by adding new-age services. Did Union Bank do the same? Markathon: How important do you think is Brand valuation as a service going to be, considering the fact that IFRS will come into force in India in 2011 and brands value has to be shown on the companies balance sheet? Mr. Kiran: Yes, brand valuation as a service will be important. But the one myth one must not be seduced by about brand valuation is that it is a static number. GAP lost $ 4357 million in brand value between 2008 and 2007 (20%) due to child labor issues in India. Pepsi lost brand value when the Surgeon General USA
attributed junk food as the chief contributor to obesity, and obesity closing in on as the No 1 killer (after smoking). Nokia was punished for ignoring the clamshell model. A brand needs to remain vigilant and vibrant; its goodwill value in the minds of the consumers and its value in the balance sheet can change dramatically even due to unforeseen circumstances. Markathon: One of your many passions is spiritual evolution. If you were asked to give one piece of advice to todays youth and more specifically to the Bschool students based on your wide ranging experiences, what would that be? Mr. Kiran: I guess every individual follows a path of evolution dictated mainly by their psychosomatic constitution. Some students will be driven by their heart, some by their brains. Some will have a higher musical IQ, some verbal. Therefore, one simple suggestion is avoid comparisons. Secondly, while education attempts to reward those who give the right answers in classrooms, in real life there is no one right answer. So look for the second or third answer in every situation. Lastly, accept that you have a larger responsibility as a human being, beyond your role as student, brother, sister, teacher, manager-define that responsibility and see if everything you do is aligned with that truth.
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markathon |december 2010
Brands & Truths

An Interview with Ms. BabitaBAruah, Vice-President & Client Services Director, JWT Delhi Ms. Baruah started her career in advertising at JWT Kolkata in 1996 and after 14 years of rich experience in the industry, she holds the same passion that she did as a starry eyed beginner. She was the VP and Business Head in JWT Mumbai office till July 2010, where she managed a challenging portfolio of finance, beauty, lifestyle and food. Currently she heads Unilevers Sunsilk and Rin brand in South Asia and leads the Nokia business in JWT Delhi. She is the recipient of the prestigious Chevening Scholarship and believes that change is the only constant. She shares with us her views on current trends of advertising and her experience in the industry. Markathon:Please share with us one particular incident in your life which you feel proved to be a turning point in your life? Ms. Baruah: The Chevening Scholarship in 2004 for Women and Leadership in Management was such an incident in my life. This scholarship is provided by the British Council and is extremely competitive as it is open to all women professionals in India. I was one of the 12 shortlisted for this and it has been a big turning point for me. Markathon: Which campaign is the most memorable to you in your entire advertising career and why?
world of
Ms. Baruah: The Times of India Lead India work was definitely the most memorable one. It was not just advertising, it was a movement we created. It showed us that advertising still has the power Rebranding has to move millions, become very positively.
important in the digitalization & globalization; brands need to remain contemporary
Markathon:Re branding is the flavor of the month. What is your take on it? How do companies ensure that a makeover turns out to be a success?
Ms. Baruah: Rebranding has become very important in the world of digitalization and globalization,which makes brands increasingly vulnerable by expanding the playing field at a global level. Brands need to remain contemporary in order to sustain themselves; they do not have the luxury of aging with time.
Companies need to be clear on the repositioning ideology or the end objective before embarking on a rebranding campaign. It is always a juggle between retaining the current values and elements that work anddropping those that dont. Makeover success
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depends on consumer understanding and the ability to decide on a rebranding campaign that takes the brand to the next level. Markathon: What does a client look at when the initial pitch is made for a deal? How do you ensure that the deal is yours?
markathon |december 2010 Markathon: Advertising industry is the besttraining ground for Indias marketers. What is your take on this statement?
Think out of the
box. Get ready to work long hours and have a rollercoaster ride of working on
Ms. Baruah:I would put it as one of the best and not necessarily the best. Having said this, I would urge every brand manager to go through an extensive agency induction to understand the creative process. It is important to realize that we are about thinking and creativity and not about churning output to meet timelines. Markathon:What do you think is the future of the advertising industry with social media and online marketing gaining more impetus?
Ms. creating Baruah:Clients look at strength conversationsthat of the strategy and the creative make a product a We prowess. brand ensure that we by win presenting our strategic take on the brief, our creative solution and most importantly, our credentials that have made us the leading agency consistently over decades. Markathon:When creating an ad, you may not always be comfortable working according to the client specifications. Many clashes are bound to come up. How do you strike the balance between the client side and your team, and ensure that it is the best ad that makes its way into the market?
Ms. Baruah: (Smiles) This is the stress of the job. The pull and the push of client and the creative team is an everyday challenge. There is an eternal debate between what is clutter breaking and what works for the brand. Yes there are clashes every day. The art of a good servicing person is to make both sides see reason by focusing on whats right for the brand overall.
Ms. Baruah: Agencies are gearing up for social media and the online media by developing own their specialized cells and units with experts from such fields. Every agency person should also be fully aware of the fact that this is the future and not just a small budget allocation as it is now, for some brands. We need to think digital and not just execute. Markathon:What would be your advice for a student who is looking at a career in advertising?
Ms. Baruah:Be creative. Think out of the box. Get ready to work long hours and have a rollercoaster ride of working on creating conversations that make a product a brand.
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markathon | january 2011
An Interview with Anjana Vivek

founder of VentureBean Consulting, a venture consulting firm
Anjana Vivek is the founder of VentureBean

Consulting, a venture consulting firm and a Guest Faculty IIM Bangalore. She is a chartered accountant who works with VCs and business leaders in the areas of business planning and strategy. Other positions held by her include Vice President, Corporate Advisory Services, Ernst & Young Private Ltd., heading the due diligence practice in South India and COO of the Entrepreneurial Centre at IIM Bangalore NSRCEL. She is an author of three books and a widely read blog and is now writing a column for DARE magazine on women entrepreneurship. In this interview, she talks about her career, learnings and gives advice to young entrepreneurs who want to market their business ideas. Markathon: A Bsc in Physics from Delhi University, becoming a Chartered Accountant, a professor in Finance and then to consulting and working with venture capitalists and investors. How have you enjoyed your journey through
Ms. Anjana: At each stage of my journey, I have discovered more about my interests and what I can do and cannot. This self-discovery is propelled by an urge to dig deeper to understand what motivates me and gives me true joy. Each role has helped me understand what I like to do and how I want to work. This is what I have enjoyed about my life journey till date. I still have miles to go on this voyage of discovery. Markathon: If you were asked to pick one moment/ incident which changed your career or the way you did business, what would it be?
these diverse assignments?
Rather than one moment/incident which impacted the way I do business, I think there were a few significant events which made me take a relook at who I am and what I can achieve
Mrs. Anjana: The single most joyful moment in my professional life was when I realized I had passed the CA exam. I can still remember the thrill of that moment when I saw my results; I felt that I could conquer the world. The first was getting into a senior role in a Big four consulting firm after a few years of flexi-time work. Another was being invited to teach as a Finance Professor, despite having no degree other than a CA. Something else which stands out is a couple of mails from students who have thanked me for making an impact on their lives. It is these incidents which have strengthened my belief that hard work and merit, without compromising on ethics does indeed pay; and I thank God for giving me the courage to be myself in todays volatile business environment.
Ms. Anjana: In the past there were a limited number of VCs investing in Indian companies. VCs typically favour select industries to fund. If a particular
Markathon: You have been associated with the Venture Capital industry in India for a long time now. What major transformations have occurred and how do you see Venture Capital in the near future?
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Today, things are very different. Many investors, formal and informal have entered the market. This ranges from angel investors, typically high net worth individuals and entrepreneurs who have been successful in the past, to large VC and Private Equity funds. They provide a range of services, from funding to mentoring to helping in the operations if required. The investment amount ranges from a few lakhs to several crores. So, yes in one sense the industry has grown. But in another sense, if you are an entrepreneur, it is still not so easy to get money. Sometimes fund raising can take 6-9 months and takes away precious time from business activity. At the end of this, there is still no guarantee that the money will be raised. In the future, there will be more VC funding available and a variety of investors, with different advantages and benefits. Markathon: Funding a new start up is considered to be a subjective decision. What are the 3 top things you would look at when funding an entrepreneurial venture? Ms. Anjana:
industry was a favourite of the season, several investors wanted to fund it, and entrepreneurs in other industries found few takers.
markathon | january 2011 Markathon: How big a role does Marketing play when it comes to the success of a new business idea?
Ms. Anjana: Marketing is the key. If people do not discover that the product/service exists; then however good it is, there may be no one to pay for it. Markathon: There are a lot of good ideas, but not A good product or service is the foundation, without which marketing cannot stand up. If someone tries to market without have a good quality offering, then in time this can fail. It is difficult to fool all the customers all the time. all good ideas make good business. What do you think is the reason for these failures? Any common thread running across all of them? Ms. Anjana:. Many times basic things are missed out. The majority of the failures do not come from big things but from little factors that one does not pay attention to
a) The core founding team, including factors such as the capabilities of the team, their interest in running a venture, their ability to think on their feet and their reason for venturing into their own business, plus their value systems and integrity. Thus I would look at capabilities as well as skill sets and value systems. b) The market that is being addressed or new market that one is attempting to create, i.e. why would a customer pay for the product and/or service. The aim to make this a successful business venture (i.e. create value in the long term) etc. c) The approach taken by the start-up to create value, i.e. what makes the entrepreneurs stand out amidst the clutter? This could be their ability to be innovative or thinking differently or just their approach to the whole aspect. This could be something that is intangible and may not be easily measurable.
Some examples:
The key to success is to offer what someone (a customer) wants or perceives she wants and not sell what you can sell.
Keeping a close watch on money and spending: Billing and collecting. Often entrepreneurs do not bother to collect what is due to them and focus only on delivery and sales. Thinking short term instead of long term: Many times one may just act without thinking through the impact of decisions. It is good to set aside time to periodically measure and monitor what is happening in the business and then set in place an action plan that can be dynamically modified. Human beings measure weight, BP, sugar, cholesterol etc. periodically. Companies also need to be monitored to see if they are in good health.
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In summary if entrepreneurs keep aside time to think, then they can introspect and plan. This can help them fix things that are in their control.
Ms. Anjana: I have a put together a framework that helps view any investment/M&A decision. Just like you look at the PAT (Bottom line, i.e. profit after tax) in the case of a company, for any deal, this is the PBRT frame work:
Markathon: What would be your advice to young graduates wanting to start their own business and looking for funding from a VC firm?
a) People: This is the key. So if the graduates are interested in looking for VC funding, they must first look at the background of the investors, i.e. would they be a value add to the start-up, money add is not value add. Sometimes investors can deplete value, despite them bringing money into the company. For example, if someone with a negative reputation invests in a company, the promoters will also be tarred with the same brush. So I would suggest, in the eagerness to get money today, do not lose out on your tomorrows. There are enough stories of entrepreneurs who have struggled and succeeded without much money in the initial days. b) Business: Look at the business angle, market, revenue, profits, value creation etc. In the initial days of the business, when value is yet to be created, it may be preferable to take smaller sums of money (seed capital) from angel investors and other early stage investors, for a small stake in the company. As value is created, more equity can be diluted for larger amounts of money from
c) Regulatory: Many times people neglect regulations and their impact on business. The IPL saga of sweat equity, foreign investment etc. is an example of this. Think through the business structure i.e. corporate vs. partnership and the legal and tax impact of getting funding and giving away equity for mentoring etc.
The graduates can attempt to write a business plan; there are several formats and tools available today. The plan may just be a summary one, on paper. Some details of what they can put in the plan are the team, product/service details, business model, financials (in a start-up much data is not there so that they can list different scenarios from pessimistic to expected to optimistic), marketing plans etc. A note on writing a business plan is available for download at www.slideshare.net/anjanavivek
VCs. Keep an eye on value created and the value drivers and risks of the business.
markathon | january 2011
d) Time: Review your plans across multiple time frames for improving the quality of your planning. What are your dreams for yourself, where do you want to be in 15 years? Give reign to your imagination; this is the foundation. Then come down to earth. Where do you want to be in 3-5 years? Finally, what are the actions you need to take today if your business is to survive for 3-5 years? What is essential to do today to survive?
While no framework helps one have all the answers and no amount of planning can guarantee success; thinking helps one in decision making. After all, successful entrepreneurs are decision makers; they lead and others follow.
So if one is trying to raise money, one must do ones homework on what the money is going to be needed for and who may be a good fit as an investor. One must approach a potential investor only after preparation. It is like taking an entrance exam, you need to study and have merit in order to get through.
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markathon |february 2011
An Interview with Seth GODIN

Author And marketing expert
Seth Godin, Author and Marketing Expert is someone who does not need any introduction. He has written thirteen books all of which have been bestsellers. His blog is perhaps the popular in the world written by a single 51 individual. As an entrepreneur, he has founded dozens of companies, including Yoyodyne, which was acquired by Yahoo! in 1998. It pioneered the use of ethical direct mail online, something Seth calls Permission Marketing. His latest company, Squidoo.com, is ranked among the top 125 sites in the US (by traffic) by Quantcast.
Special
Markathon: Your Driving Force
Markathon: Role of Blogging
I like to solve interesting problems and share the answers. At the same time, I find I work best as a soloist, working on project after project. Add those up and there you go.
I think that blogging has a bigger role in the world of life. Blogging makes you more thoughtful and probably more generous.
Markathon: The next big thing in marketing
Markathon: Best Medium for Permission Marketing in India
Permission Marketing and Social Media Marketing is the next big thing. Dont wait for another revolution, this is the one.
SMS
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Markathon: On the application of innovation Markathon: The book closest to your heart and insights
In the book Linchpin I talk about the role of the individual who creates generous art. In India, there are so many people with so much to contribute, but the topdown imperialistic boss mindset often gets in the way. This needs to change.
Probably Survival is Not Enough. It took the most work, sold the least copies.
Markathon: You were called The Ultimate Markathon: Last word for our readers Entrepreneur for the Information Age by BusinessWeek. Whats your motivation to keep starting new ventures?
Isnt that the whole point? To make a ruckus? To see what works? Each project has its own reasons, but its always about the project.
GO!
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2011 markathon |february 2010
An Interview with Douglas B Holt

LOreal Professor of Marketing, Sad Business School, University of Oxford and Renowned Author on Cultural Branding
Douglas Holt is the LOreal Professor of Marketing at the University of Oxford, and Co-Principal of The Cultural Strategy Group. Previously he was a Professor of Marketing at the Harvard Business School. He is a leading expert on brand strategy, having established cultural branding as an important new strategy tool in his best-selling book How Brands Become Icons: The Principles of Cultural Branding. He is also the author of Cultural Strategy: Using Innovative Ideologies to Build Breakthrough Brands. He has developed cultural strategies for a wide range of brands, including Coca-Cola, Microsoft, Ben & Jerry's, Sprite, Jack Daniel's, MINI, MasterCard, Fat Tire beer, Qdoba, Georgia Coffee, Planet Green, and Mike's Hard Lemonade, along with a number of non-profit organizations. He holds degrees from Stanford, the University of Chicago, and North western University, and is the editor of the Journal of Consumer Culture. He has been invited to give talks at universities and management seminars worldwide, including the Global Economic Forum in Davos
vartalaap Markathon: How have global brands evolved in the last decade or so; in the context of the emerging economies becoming a massive consumer base? Mr. Holt: It is hard to provide any overarching comments because there are a number of different types of global brands that succeed (or fail) based upon different brand mechanics. Generally western companies have viewed developing markets as their last great hope at double digit growth. But to expand their brands into such countries, theyve had to learn the hard way that creating brand value requires a nuanced understanding of issues like national identity and global status. Western brands can bring potent cross-cultural value, representing western ideologies that are much valued in developing countries. But they can also act as a ball-and-chain, carrying symbolic baggage from the westsuch as connotations of post-colonial dominationthat consumers in developing countries resent. Branding in such situations requires considerable cultural nuance. Markathon: You have emphasized on socio-cultural branding for the creation of an Iconic Brand. Can you share with us an example of a brand which has achieved it in a successful manner and how it has achieved it?
markathon |february 2011 2010 scuttled with the first waves of outsourcing in the 1970s, Budweisers extolling of the virtues of the traditional artisan served up a shot of old-fashioned respect with every brew to embattled blue-collar men. Budweiser understood the socio cultural context and used their campaign to capitalize on it. Markathon: Do you feel that in a country like India, cultural branding might be difficult, given that the culture is highly diverse across the nation (most of the state provinces speak different languages, have different customs) unlike the United States or United Kingdom? Mr. Holt: First I disagree with your premise. If youve ever visited London, you would find that it is one of the ethnically diverse cities in the world. Likewise the United States is extremely heterogeneous despite that most people speak English. Finally, cultural branding often thrives on political and cultural difference. For instance ben & jerrys ice cream shot to success in the USA by opposing Reagans politics in the 1980s, and Apple and Starbucks have championed ideologies that the majority of Americans find condescending and elitist. The cultural diversity of the USA was helpful for these brands. So Indias diversity likely produces excellent conditions for cultural branding. Markathon: What trends in consumer culture and behaviour do you see emerging in the next decade and the impact that they make on the way brands are created, marketed? Mr. Holt: In cultural branding, we avoid looking at trends because they are usually characterized in an extremely generic manner. To do cultural strategy, 61
Mr. Holt: There are lots of brands which have achieved iconic status by using cultural branding which I have talked about in my two books. To explain how they achieved would take a long time. One example which comes to mind is that of Budweiser, when Americas high-wage industrial base was being
Cultural branding works because people are cultural beings, which applies to all people in all countries regardless the configuration. The idea is that brands respond to major shifts in society that create cultural tensions, which can only be resolved by new ideologies. Brands can provide these ideologies. Iconic brands never work for everyone in society, only a segment. So there is no reason to exclude India due to cultural diversity.
vartalaap you need to move beyond thinking about social change in terms of a handful of trends. Rather society is always changing in myriad ways and only a small fraction of these changes are important for a particular category and a segment therein. So the challenge is always to treat historical changes in a highly customized manner, studying the particular changes that are important to the business problem you are trying to solve rather than buying in to the generic trends hyped by the media. Markathon: What, in your opinion, is one common error (if any) most of the brands commit which prevents them from becoming an iconic brand? Mr. Holt: The managers of such brands follow the conventional marketing handbook. They believe that the value of the brand is derived from the distinctiveness of the brands rational and emotional benefits in the consumers mind and they hammer these benefits across all marketing efforts and consistently over time. Iconic brands are created because the brand is dynamic: it responds decisively to changes in society with new ideology. And rather than think of value in benefit terms, iconic brands dominate their categories by proposing new ideologies that consumers value so much that they are more than willing to ascribe rational benefits to the brandit is the highest quality, tastes the best, is the most innovative etc simply because consumers identify with what the brand stands for. Markathon: Youve had an amazing career spanning from being a brand manager to teaching at Harvard Business School and now Sad Business School at Oxford, could you share with us an incident/moment which youd call a great learning experience?
2011 markathon |february 2010 Mr. Holt: Im very interested in how branding can be used to improve the lot of the poor, especially commodity producers in the global south. At Oxford I worked with Oxfam to help Ethiopian coffee farmers make more money by branding their traditional coffee appellations (like yergecheffe), which are highly renowned in the West. This is a fresh branding idea, ripe with huge possibilities to push value chain rents down to the farmers in the south. However Starbucks was deeply opposed to this effort because they made lots of money by using these Ethiopian appellations for free. As a result, the leadership of the Sad Business School stridently opposed my work, even stripping my essays from the faculty website, on the rationale that Starbucks might interview at the school someday and they might take offense to what i was doing. This is despite the fact that I testified before the British parliament, conducted interviews on the BBC, and so on. This incident shocked me. It taught me that even supposed liberal bastions like Oxford are very much captured by economic elites. It is a real challenge to work within business schools to advance the interests of common people. Markathon: Any advice for young marketing graduates (our readers) stepping out from college and looking to make a career in the world of branding?
Get a liberal arts education along with the nuts-and-bolts analytic skills needed to do day-to-day brand management. Marketing as taught in most MBA programs strips from students the key humanistic expertise necessary to build brands. Studying history, anthropology, sociology, media, politics and such provides a much richer foundation for branding than what is taught in business education.
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markathon |march 2011 markathon |february 2010
An Interview with Priya raghubir

Professor of Marketing, STERN School of Business, NewYORK UNIVERSITY
Priya Raghubir is the Professor of Marketing at New York University , Stern School of Business. She was previously a Professor at Haas School of Business. She has taught undergraduate, M.B.A, Ph.D. and executive education courses in China, France, India and the U.S. Professor Raghubir received her undergraduate degree in Economics from St. Stephen's College, Delhi University; her M.B.A from the Indian Institute of Management, Ahmedabad; and her Ph.D. in Marketing from New York University. Professor Raghubirs teaching interests are in the areas of marketing research, consumer behavior and marketing strategy, and her research interests are in the areas of consumer psychology, including survey methods, psychological aspects of prices and money; risk perceptions; and visual information processing.
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vartalaap Markathon: How has the psychology of the Indian consumer changed over the decade? What are the key considerations for a marketer in the Indian context? Ms. Priya: India is becoming increasingly like other consumer economies, such as the US and HK. The brand proliferation and high quality of products and other service options, along with the increase in disposable income have led to the Indian consumer having more choices than ever before, and being able to exercise them more discriminately. Markathon: What according to you is the most effective survey method? What key factors does a marketing research survey depend on? Ms. Priya: Good research needs to be valid, reliable, and generalizable. That means, you need to ask the right question, get the right answer, from the right people. All methods of data collection: exploratory (such as focus groups and in-depth interviews), descriptive (such as surveys and observations), and causal (such as conjoint experiments) have different strengths and weaknesses. While the first method can give you depth of understanding, the second may better allow you to generalize, and the last is the best for determining causality of the if-then type. Thus, it depends on the state of knowledge of the researcher and the business problem which method would be most appropriate. Markathon: Do you feel that the 4P approach to marketing is out-dated in the world today? Ms. Priya: I believe that there is time for the 5th P Planet, to add to our four Ps! Markathon: What according to you creates a successful marketing strategy? Ms. Priya: The four Cs: Three of which one knows Company, Competition, and Customer, but increasingly, the 4th C of Community will allow for a sustainable strategic competitive advantage. Markathon: What, in your opinion, is the ideal career path for a marketing professional? Ms. Priya: I think each individual must determine their own path. One size cannot (and should not) fit all.
markathon |march 2010 markathon |february 2011 Markathon: Pricing is always one of the most important decisions to be taken, be it for a first mover or a follower in the market. What would you say are the key aspects to be considered in pricing? Ms. Priya: I believe the psychological considerations of pricing are under-looked in price setting. These include the perceptions of prices, the inferences drawn from them, the affect (feelings and emotions they induce), and the manner in which they are integrated with other information to make a judgment. Markathon: With expertise in the field of marketing research and consumer psychology, what according to you are some of the psychological biases in pricing and packaging? Ms. Priya: That is a really difficult question because you are asking me to summarize two decades of two streams of my research into a few sentences! But if I had to, here is what I would say: I believe the underlying reason for most biases is due to effortaccuracy trade-offs. Said differently, most of the time a simple heuristic does work just fine for a consumer who really does not wish to maximize accuracy, just satisfice it. One of the heuristics, though that are seemingly so simple to use, and can lead to big biases in behaviour without a consumer realising their biasing effects is the Anchor-and-Adjust heuristic. As per this heuristic, you would anchor on one aspect of a stimuli due to its perceptual salience (e.g., height of a container in a packaging context, or foreign currency price), and inadequately adjust for the remaining dimensions required to make a judgment (e.g., width or breadth of the package, exchange rate of the currency in which the price was specified), and therefore make biased judgments. Markathon: From a student of marketing to the Mary C. Jacoby Faculty Fellow at New York University, what has been the most important learning for you? Ms. Priya: Despite three masters degrees (the first of which is from your sister institute IIMA), I believe that my most important learning is to never ever compromise on my sleep. When I do I produce shoddy, second hand work! So: sleep well, eat well, and work will take care of itself.
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markathon |february 2011 markathon |april
Author of Buyology and Brand Sense

MARTIN LINDSTROM is among the foremost Brand Consultants in the world today. He is a 2009 recipient of TIME Magazines World's 100 Most Influential People and author of BuyologyTruth and Lies About Why We Buy (Doubleday, New York), a New York Times and Wall Street Journal bestseller. A prolific traveler, Lindstrom is on the road 300 days annually dispensing his brand of wisdom to top executives of McDonalds Corporation, Procter & Gamble, Nestl, PepsiCo, Microsoft Corporation, The Walt Disney Company and GlaxoSmithKline, amongst others. His personal global audience is estimated at over a million people. Lindstrom has and continues to feature in the Wall Street Journal, Newsweek, TIME, The Economist, New York Times, BusinessWeek, The Washington Post, USA Today, Fast Company, and numerous other publications. His recent book, BRAND Sense, was acclaimed by the Wall Street Journal as one of the five best marketing books ever published. Lindstrom's latest book, Buyology, has been translated into more than 30 languages. More at martinlindstrom.com.
Martin Lindstrom
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markathon |february 2011 markathon |april Can your brand survive being smashed? It is an interesting exercise, which removes a logo-fixated mindset and brings you closer to a philosophy valuing all elements that create the brand that it is. Two black ears from a well-known mouse are instantly recognizable as Disney. A Singapore girl suggests Singapore Airlines. These are only components of the brand, and yet theyre unmistakable. The trick is to create each element so that its so strong, so able to stand alone, yet at the same time so integrated and synergistic that it can take the brand to a whole new level of familiarity. To place too great an emphasis on a brands logo carries risks. Least of all there is a danger of neglecting all the other potential brand-building opportunities. If paid due attention, there are many other aspects that become recognizable in their own right. Colour, navigation, texture, sound, shape. Even blindfolded, youd know youre holding a classic Coke bottle.
MARTIN LINDSTROM
Smashing Your Brand

Back in 1915 Earl R. Dean, who was working at the Root Glass Company, was given a brief to design a bottle, which firstly could be recognized in the dark. And then, even if broken, a person could tell at first glance what it was. Taking his inspiration from the pod of the cocoa bean, Dean produced a bottle with ridged contours. He succeeded beyond his wildest dreams. This led to the CocaCola Companys contourization strategy, which used the shape to emphasize the very brand. The bottle he designed was the classic Coke bottle, which has become one of the most famous glass icons ever. The bottle is still in service, still recognizable, and been passing the smash test for every generation over the last 80 years. The Coke bottle story reveals a fascinating aspect from a brand-building perspective, because in theory all brands should be able to pass this sort of test. So if you removed the logo from your brand, would it still be recognizable? Would the copy stand up to it? Would the colours, graphics and images standing alone pass the text?
Its time to kill your logo

Remove your logo, and what do you have left? This is a very important question because a brand is so much bigger than its logo. Are the remaining components easily identifiable as yours? If not, its time to Smash Your Brand. The Smash Your Brand philosophy considers every possible consumer touch point with a view to build or maintaining the image of the brand. The images, the sounds, the tactile feelings and the text all need to become fully integrated components in the branding platform. Each aspect playing a role as vital as the logo itself. 66
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markathon |february 2011 markathon |april There are only a few brands that would pass the Smash Your Brand test today. Take a moment to consider it. If you were to remove your logo and any other textual reference to your brand name, would your customers still recognize the product as yours? Chances are that you will find that without the logo and name, your brand loses its meaning. In order to reverse logo dependency, all other elements colours, pictures, sound, design and signage must be fully integrated.
Knowing what youre known for

Advertising messages are increasingly cluttering our airwaves and print media. The average consumer is bombarded with an astonishing 3,000 brand messages a day. As each brand fights to be heard in this cacophony of the commercial world, its vital that they strike the perfect note to stand out. Our use of media itself has become more sporadic. Media plays on in the background of our busy lives, we have developed internal filtering systems that help us switch off. This fragmentation of attention, requires advertising develop a totally integrated brand message, optimising every brand signal in such a way that the brand becomes instantly recognizable. This presents the advertiser with enormous challenges. As many as 20 per cent of the tween generation own their own cell phone, and there's every indication that this number is increasing on an annual basis. A large proportion of these phones are the basic variety with non-colour screens, lesssophisticated graphics and minimal visual effects. How would your brand fare on this match-box- sized canvas? The situation of media fragmentation is further complicated by brand alliances. A large number close to 56 per cent of all Fortune 500 companies have formed alliances in their communications. This fact alone requires an even larger need for the implementation of a Smash Your Brand strategy, because when two brands share one space, the need to convey separate values and commercial messages in a limited 30-second spot, two logos alone simply wont do the job.
Smash Your Brand piece by piece

Smash Your Brand into 12 different pieces. Each piece should work independently of one another, although each is still essential in the process of establishing and maintaining a truly smash-able brand. The synergies created across the pieces will be essential for your brands success.
Smash your picture

Everything can be smashed even your picture. Since its beginnings in 1965, the United Colours of Benetton has consistently developed a consistent brand style identifiable in any size, in any country and in any context. It was Benettons intention to develop its own unique personality. They consider their clothing to be An expression of our time. Their strategy in maintaining this integrity has been to generate all their own images. Luciano Benetton explains, Communication should never be commissioned from outside the company, but conceived from within its heart. Benetton is a brand that would survive smashing. The image and the design is its own statement and is part and parcel of the Benetton heart.
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markathon |february 2011 markathon |april only 13 models got through the production line with the 901 insignia, thereafter it became known as the 911. Peugeot has held the numeric name rights for cars since 1963. The middle zero gives them a distinction that automatically identifies their models as Peugeot even if youre not able to conjure up a mental picture of a 204, or a 504.
Smash your shape

Shape is one of the most overlooked branding components, even though certain shapes clearly speak of their particular brand. Think of the bottle shapes of Coke, Galliano or Chanel No. 5. Particular shapes have become synonymous with certain brands. The Golden Arches refer to McDonalds trademark, and theyre consistently present at every outlet in every country all over the world. Since 1981 the shape of the Absolut vodka bottle has been the primary component in every aspect of the brand and its communication. From fashion showsto ice hotels, footprints on the beach or Northern lights, Absoluts inventive ads are all based on the shape of the bottle. The shape of the bottle is the shape of the brand.
Smashing your language

Disney, Kelloggs and Gillette are three completely different brands with one thing in common. Over the past decade theyve established a branded language. The irony of this is that they may not even be aware of it. Whether coincidentally or purposefully, our studies shows that 74 per cent of todays consumers associate the word crunch with Kelloggs. Another 59 per cent consider the word masculine and Gillette one and the same. Americans formed the strongest associations of masculinity and Gillette by an astounding 84 per cent. Every component of your brand can be smashed, your language, colours, shapes, tactile feeling even your sound or pictures. Smashing these leads to much more than a characteristic brand it creates a point of differentiation impossible to copy by your competitors. Remember branding is everything but a logo its a way to add a characteristic personality to your brand including every component creating a true point of difference.
Smash your name

Or what about smashing your name? When the Porsche 911 was introduced in Frankfurt in 1963 the model was called 901. The brochures were printed, the marketing material was all in place but everything had to be urgently changed. Much to Porsches dismay, they discovered that Peugeot owned the rights to all threedigit model numbers of any combination with a zero in the middle, and this was non-negotiable. Fortunately
Article has been taken from www.MartinLindstrom.com with prior permission and approval from the Martin Lindstrom Company Ltd.
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markathon |april 2011 markathon |february 2010
An Interview with Vivek Mehra

MD & CEO, SAGE, South Asia
In this months Vartalaap we feature Mr Vivek Mehra, Managing Director and CEO at Sage Publications India. Mr. Mehra has been with SAGE India since 2005. Mr. Mehra has a PhD in Chemical Engineering from the University of London and Bachelors in Textile Technology. He also has an MBA from the Columbia University. He shares with us some wonderful insights about the world of publishing, his interesting career and also some advice for our readers.
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vartalaap Markathon: You have had a diverse educational background ranging from Textile technology, Chemical Engineering and an MBA from the Columbia University. How has the journey been and how did the transitions come about? Mr. Vivek: I come from a family of textile pioneers. Silk Screen printing was first used (commercially) in India by my great grandfather. I grew up surrounded by printing inks and that is all I wanted to ever learn. When I graduated I worked for what is today a power brand in the US. The MBA was in night school (4 nights a week; the rest spent doing a bartenders job in an Indian restaurant in New York). On my return to India the joint-family as I knew it was in disarray. I spent a decade trying to find my calling; from food processing to selling innovative products, I tried a lot. In 2000 I discovered technical writing and began seeking jobs for this. My perseverance led me to an Australian company that first hired me as a freelancer editor then a writer and eventually a trainer. In 2005 SAGE discovered me and the rest as they say is history. Markathon: Can you share with our readers an incident/moment which youd call a defining moment for you and your career? Mr. Vivek: My career was going nowhere and I was even given a moniker by my family: Padha Likha Bewakoof. When an Indian won the Booker in the late 90s I was convinced there was a Booker Prize novel in me. I wrote the book in about 4 months, spent a year trying to get it published. Nothing happened. I then discovered I could still write and make money. I will
markathon |april 2011 markathon |february 2010 never forget the day my first pay check arrived it was for a princely sum of Aus $145 (about Rs.5000 in those days). I was in Bangalore visiting my parents then and spoke excitedly about the first real pay-check in a long time, especially for something I had done completely by myself. My father laughed and insisted I was still the fool who believed this was a career. I have not forgotten how I felt that day and it was the feeling of hurt that ensured I found my calling. Markathon: Sage has been at the forefront of the publication industry in India for a long time now. How has the landscape of the Indian publishing industry changed over the years? Mr. Vivek: Publishing in India was an off-shoot of owning printing presses. The only real books India had, came from overseas. There were some publishers in India (MacMillan, OUP etc.) that catered to the lower end textbook market. But as Indians became more literate the demand for books grew. Printing presses
became publishers; many times reproducing Indian versions of popular overseas books. Overseas publishers looked at India as a market for remaindered books (a term used to describe books that are sold at 80 or 95% of their list price; sometime even sold by weight). This sort of book availability led to the creation of neighbourhood lending libraries and bookshops. It was only in the late 70s that India started reaching critical mass in terms of the number of books being bought vs. the availability of books to fuel the demand. Printing presses began publishing books and in the last 70
vartalaap decade the retail boom has made overseas publishers sit-up and take notice of Indias market. Markathon: Where do you think the future for Sage South Asia lies? How do you see the company shaping up say 10 years down the line from now? Mr. Vivek: SAGE is on track of fulfilling its primary objective becoming a publisher of choice for books and journals in the fields it publishes in. We continue to grow at a rate of 22% per annum and I don't foresee this ever falling below this level. Markathon: Sage is coming out with the Legends of Marketing series. Can you throw some light on how it was conceived and how important the series is to Sage? Mr. Vivek: The series has already seen 2 legends already published. The project is the brain child of Prof Jagdish Sheth. It began as a gift for his 70th birthday but has since become a legendary product. SAGE gave it the form you currently see it in and behind the form came the push to disseminate it as far as possible. SAGE has long been regarded as one of the top publishers in reference works. This series marks the entry of SAGE India into the field on a global scale. Markathon: Sage mainly deals with books with a limited circulation (distinguishing itself from the so called mainstream) , keeping this in mind, what role does the marketing department play for a Sage publication? Mr. Vivek: It is not true to classify our books as those with limited circulation. They are widely circulated
markathon |april 2011 markathon |february 2010 within the markets they address! It is true our books are not as glamorous as fiction ones are but there is hardly a library in South Asia that doesn't have some of our content. Marketing as a discipline predates sales. Most often a sale is the consequence of good marketing. Given the territory we cover, it is not possible for us to have physical contact with our potential clients. We can only reach them through messaging about our products. And it is in this messaging that marketing becomes crucial. With the growing proliferation of the Net and humans relying heavily on it for information, the role of marketing can only get bigger, better and faster. SAGE Indias marketing department is at that turning point in its life cycle. It is moving rapidly towards both technological and ideological advances. Markathon: What would your advice be to youngsters looking to make a career in the publishing industry? Mr. Vivek: Publishing is a good career but not for everyone. In the fast paced environment dominated by commercialism, it is difficult to take the path of a steady paced career. Publishing in India is on a faster growth trajectory than that of the rest of the world, but it is painfully slower than say financial services or business consultancies. At some point in everyones life comes a time when the soul wants more than just commercial perks. Publishing has a lot of collaterals that no other career offers. Names are often immortalized by appearing in print (mostly books), the crowd that publishers move in are allows the cream of society, government and or academia. I cant think of another career that adds to job satisfaction the way publishing does; the fruits of one labour are recorded very effectively.
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markathon | june 2011 markathon |june
An Interview with Russell Winer

William H. Joyce Professor of Marketing and the Chair of the Marketing Department at Leonard N. Stern School of Business, New York found marketing to be much more interesting, and Russell Winer is the William H. Joyce an opportunity to combine my economics Professor of Marketing and the Chair of the background with my interest in consumers. Marketing Department at Leonard N. Stern School of Business, New York. Professor Winer Markathon: In the Indian context, what are the has served two terms as the editor of key noteworthy points in psychology of pricing? the Journal of Marketing research; he is the How is the Indian market different from the US in past co-editor of Journal of Interactive this aspect? Marketing and is currently an Markathon: You have been studying in-storeAssociate Editor of decision making for years. Could you share Mr. Winer: At one level, people are the International people in that they look at a retail with us your learning in consumer behavior Journal of Research price and internalize it by mentally from the same? in Marketing. In this assessing whether it is a good or Mr. Winer: Well, what amazes me is how bad deal for them. I feel that many interview, he talks many purchase decisions are made in the of the basic psychological aspects about the of price hold. However, given the store, right at point of purchase. In the U.S., psychology of very wide disparity of incomes in we have developed a term for how marketers pricing, in-store India, a persons reaction to a price are focusing more on in-store marketing, decision making and will depend greatly upon their consumer choice income or necessities vs. luxuries. Situation and their budgets models.
Markathon: From Economics to Industrial Administration to Marketing- how has the journey been? Any learning/ insights you would like to share with our readers? Mr. Winer: Economics is a great background for business as you learn how markets work and how consumers should behave. Of course, they dont behave exactly the way economists predict, but it is good to have a baseline model from which we can see differences in behavior. In addition, economics helps us to understand finance and accounting which are important disciplines for marketing managers to understand. Industrial administration was Carnegie Mellons term for business. I was originally interested in finance but
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shopper marketing. While it is actually somewhat broader, the main focus is how we as brand marketers can draw more attention to our offerings than to a competitors right there on the shelf. Thus, money spent on advertising can be offset by special attractive displays in the store. Markathon: With large brands and companies, product management is a key concern. Are you in support of umbrella branding? Does it help product management or dilute the brand equity? Mr. Winer: In most cases, yes I support umbrella branding. Companies spend millions building brands and it is natural that they would try to amortize that spending over a number of subbrands. However, there have been many cases where brands have been stretched too far resulting in sub-brands that have no real relationship to the parent. Marketing managers should exercise caution when developing brand extensions and make sure that they study consumer reaction to any new stretching that may be beyond the bounds of the original brand concept. Markathon: What interests you the most in the consumer choice models? Mr. Winer: I am interested in incorporating psychological aspects of price and advertising into brand choice models. For example, I have published a paper showing that consumers process prices with 9 endings from left-to-right basically ignoring the last digit. I also study how individual family advertising exposure affects brand choice. I like working with what is called electronic scanner panel data, data collected at point-of-purchase on individual household purchasing. Markathon: As management students, we know how important it is to understand the customer. However, do companies really take the effort to really understand the consumer? Mr. Winer: Good question. In my experience, more companies give lip service to understanding the customer than really do it. It is important for managers to talk to customers and actually go into
stores and observe how choices are being made. You cannot make intelligent decisions only sitting in an office tower poring over computer printouts. Markathon: You are known for your expertise in the use of information technology in marketing. A lot of engineers with IT background venture into marketing. Could you help them in understanding the applications of IT in marketing, so that they can make an informed career decision? Mr. Winer: The most exciting nexus of technology and marketing is whats going on in new modes of communications, particularly social marketing such as Facebook. No one forecasted how much people wanted to connect with each other online and through smart phones or how this could be successfully monetized. However, all the other areas of marketing such as pricing, channels, new product development, etc. are also being affected by technology, mainly by figuring out to reach customers on a 1-to-1 basis and integrating them more into the operations of the company. Markathon: What would be your word of advice to MBA students?
Mr. Winer: Get a broad education in business

school. Do not overly focus in any one area because general managers need to have a sound education in all of the functional areas of business. In addition, always think of what the customer wants. The smart managers and companies make products and services that resonate with customers, not with themselves.
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markathon |september 2010 markathon |february 2011
An Interview with HASIT JOSHIPURA

VP South asia & md, INDIA, glaxo smith kline pharmaceuticals ltd.
Dr. Pradeep Bhardwaj is British Columbia Innovation Council Chair in Sales & Sales Management and Associate Professor in the Marketing Division at the Sauder School of Business, University of British Columbia. He was earlier with UNC, Chapel Hill and UCLA where he received the Most Valued Professor Award. His areas of expertise are Sales Force Management, Designing Channels of Distribution and Customer Lifetime Value. He holds an MBA from the Simon Fraser University and a PhD from the University of Toronto
Markathon: How can a MBA student hone himself to become an effective personal selling agent/ negotiator? Mr. Pradeep: In my experience and interaction over the years, the foremost quality for an effective personal selling agent is to be a very good listener. Most agents are in a hurry to sell their product rather than listening to what the customer wants. The seller should also prepare for different situations and every possible situation that is likely to be encountered. Understanding the business, clients and the trends affecting the industry helps a seller understand the different situations. Another important thing is to genuinely understand the problems of the buyer and the implications of the problems. Looking out for ideas to counter those implications would ensure a good sale. If we consider an example of selling supplies to a hospital, that is facing a problem of say, overstocking. The cause for overstocking might be because the individual divisions in the hospital could be ordering separately, from
separate vendors perhaps. If the seller can demonstrate understanding of the hospitals problems, and the implications of overstocking (example lower budget available for hiring qualified doctors) and then address the needs, it is a win-win situation for both the parties. Markathon: With your industry experience, what do you feel are the key differences in services marketing? Mr. Pradeep: Services are intangible and are about providing a good experience/interaction to the consumer. Services can also be customised to suit the consumers needs. Service quality differs from product quality as service quality is often based on reputation rather than tangible attributes. This reputation often arises from the clients interactions with a single individual. For example, a firm which offers financial advisory services depends on its personal selling agents to create the firms reputation among the clients; the branding is on a personal level than on an organisational level. Services marketing is all about building long term relationships which are profitable to the company. Products are generally returnable but not 74
vartalaap services. However, the firms need to be aware of the reputation effect. In services the pricing varies a lot unlike in the products where the pricing is quite standard. Markathon: What is your take on umbrella branding? Does it dilute the parent brand or strengthen it? Mr. Pradeep: Umbrella branding is the proverbial double edged sword. It can prove to be quite useful if the company can capitalise and build on economies of scope. For a company like Toyota which caters to different segments with its Corolla, Camry and Sion , umbrella branding facilitates new product introduction and also goes a long way in building its acceptance in the market. Umbrella Branding also imposes a greater burden on the entire product line. Even if one of the products in the family is compromised it can potentially affect the sales of the other products as well. For umbrella branding to be successful, the product line should have similar quality levels and should not have a very wide spectrum to which it caters. When Toyota wanted to enter the higher end car market, it decided to use the Lexus name rather than use the Toyota name. Markathon: While on paper it makes sense to build long term customer relationships, often customers change preferences and are not loyal despite best efforts of marketers. Does focus on long term relationships really make sense in the dynamic and chaotic business environment of today? Mr. Pradeep: Any consumer when changing to a newer product or service looks at minimising the switching costs. For a PC user, switching to Mac entails costs related to newer applications, devices in addition to the cost of a Mac. The consumer always evaluates the alternatives and chooses what he/she feels is the best for his/her needs. It is important to build relations with the customers so that you can cross-sell or up-sell your products. There are also some customers who are inherently variety seeking in nature and do not stick to one single product or brand. Trying to build relations with these sorts of customers doesnt come easy. Companies should try to narrow down on consumers who might be spending less, but are very influential in
markathon |september 2010 markathon |february 2011 the communities of which they are a part. An example of that is a tourism company, here in Vancouver, which identified people who had successful blogs on tourism. They were targeted and in turn provided good publicity for the company via their blogs because they had a good time with the tourism company. Understanding the dynamic nature of the consumers and the evolution of their needs would provide a company with great opportunities. Every consumer moves on eventually and the company should look out for newer ways to fulfil these new needs. Markathon: What have been your learnings from managing multi product sales force? Mr. Pradeep: Managing a multi-product sales force is a challenging task and needs intelligently framed sales policies. The nature of multi product teams needs to be decided depending on whether the products are substitutes or complementary to each other. An organisation should determine how it wants the selling time to be devoted among the various products and communicate the same to the sales agents. If the agents work in 8 hours shifts, there has to be a certain amount of time devoted to each of the product. Designing an appropriate compensation and evaluation plan for a multi-product team is also essential. These packages should be aligned with how the selling time has been divided among the products. If the compensation package is skewed, the agents might end up selling only the products, which give them a good margin and ignore the rest of the products. The sales team also should keep track of each product individually and the number of sales prospects, number of customers in the sales funnel and how the prospects are progressing through the funnel must be managed well. Markathon: How should a beginner approach design of channels of distribution? What are the key considerations for the same? Mr. Pradeep: There is no single approach to designing the channels of distribution. They depend on the kind of product being marketed, the companys objectives and expectations from launching the product and a host of other factors. The channel design is a part of the Go-ToMarket strategy for that particular product. 75
vartalaap Some of the key considerations for a distribution channel would be customer attraction and retention activities and bulk breaking of the product. The information and logistics needs for a particular product have to be kept in mind when designing the channels. For designing a channel, we also need to identify what kind of a channel portfolio will fit the product. The various channels can be Direct Selling, Franchises, distributors, retailers, telesales and sales over the internet. The different portfolios relevance to the product needs to be identified and then the company can decide on what different channels it should use for its products. Evaluating the efficiency and effectiveness of each of these alternatives objectively will give a clear picture of which sales channel is best suited for a particular product. Markathon: How can customer lifetime value data be used effectively by marketing managers? What are the limitations in using customer lifetime value while taking sales decisions? Mr. Pradeep: CLV data is a very useful tool used for segmenting the consumers into different brackets according to how profitable they are to the company. It also helps in pointing out the high acquisition costs faced for some of the consumers. This said, CLV might often result in looking for short term gains and miss out on long term profitability. For example, a customer usually turns profitable for an online book seller only after an average of 5-6 years and things like these have to be kept in mind when looking at CLV data. There seems to be a disconnect between the objectives and the metrics of CLV data. Most of the times, the focus is on retention of customers since it is assumed that these customers are more profitable. The companies should understand that every retained consumer might not give a higher share of the wallet. The objective should be to look out for profitable customers and not just loyal customers. Even if 80% of the customers are retained, they might not end up spending much and hence the company loses out. Markathon: What should be the aim of a marketing enthusiast while pursing MBA? There are multiple trade-offs to be made in terms of time and effort. What should be the focus during this period of education?
markathon |september 2010 markathon |february 2011 Mr. Pradeep: For any management graduate, one thing of prime importance is to understand how to deal with ambiguity. There needs to be a critical evaluation of a situation or an activity and identify whether it is good or bad. In the classroom, case studies are used and in these case studies the problem is very explicitly stated and the student hardly has to spend time in identifying the key problem/s. In the real world, the problems are always ambiguous and have to be identified. If the sales of a product are going down, you need to dig deep to understand why it is happening and also how it can be tackled. For a marketing enthusiast, apart from a sound marketing knowledge, it is important to have a thorough understanding of the other areas like Supply Chain, Finance etc to have a holistic view of the company. A marketing person should be able to explain decisions to other departments and this can happen only if he/she understands their perspectives as well.
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An Interview with Venkatesh Shankar

Marketing PhD program Director, texas a&m university
Venkatesh Shankar is the Marketing PhD Program Director and Colemain Chair in Marketing at Mays Business School, Texas A&M University. He is an undergraduate from IIT Kharagpur and has done his graduation from the Indian Institute of Management Calcutta. Dr. Shankar completed his Ph.D in Marketing from the Kellogg Graduate School of Management. Dr. Shankar's areas of specialization include Marketing Strategy, Innovation, International Marketing, Digital Business, Pricing, and Retailing. He has corporate experience in marketing and international business development. He has made over 150 presentations in diverse countries. He is a visiting faculty at the MIT, INSEAD and ISB, Hyderabad among others.
Markathon: From IIT Kharagpur to IIM Calcutta to Kellogg Graduate School of Management- what, according to you, was the turning point in your career? What is your biggest takeaway from a long and illustrious career as a marketer in the industry as well as academia? Mr. Shankar: I had two career-changing points in my life. First, I was to pursue graduate studies in engineering at Rice University in the U.S. after my B. Tech. My original plan was to be at IIMC until I could get my US visa. However, during that short period, I enjoyed learning about management so much that I decided to continue my PGDM (MBA) at IIMC. Second, I was doing well as Business Development Manager at HSBC before I decided to do a PhD at Kellogg mainly to feed my intellectual curiosity. The biggest takeaways for me are: Pursue with passion what fascinates you; Be flexible and be willing to learn; and Aim for high impact in whatever you do. Markathon: In the Indian context, what is your take on disruptive innovation and marketing? Do you feel
India is(has) been a pioneer in this field or a late adopter? Mr. Shankar: India has many ingredients that enable disruptive innovationlarge and growing middle class, increasing aspirations, and low ability to pay. Because of the large customer base that needs/desires affordable goods and services, many innovations have to be developed outside the current customer mainstream (top end of the market), that is, they have to be disruptive. Many of the solutions are coming in the form of affordable/frugal/reverse innovations. GE's Mac 400 and Mac i, ultra-portable electrocardiogram (ECG) machines were made for India, all ground-up, to be sold at 1/3-1/6 of the price of similar imported machines. Markathon: How is international marketing different for a domestic company going abroad and a MNC setting base in another country? Does standardization of campaigns work or is it better to have individualized campaigns for each country? 77
vartalaap Mr. Shankar: Many principles are similar for both types of firms. All companies have to do a triadic market entry analysis (analysis of three dimensions: market attractiveness, competitive advantage and risk). Even a MNC must have started out as a domestic company at some point in time in its history. However, there are differences. Relative to a MNC, a domestic company typically has no international exposure, fewer resources, and little brand recognition overseas. The standardization vs. adaptation of product decision depends on a number of factors such as product and marketing costs, speed-to-market, brand equity and its transferability across countries, culture boundness, satisfaction of target segment needs, and competitive intensity. An iPad is standardized to benefit from scale economies, similar global needs (touch-based communication, entertainment, and bookreading), outrace competitors, and cash-in on Apples hip image. A fast food chain like McDonalds store is adapted because what it sells is culture bound (e.g., hamburger in the US, Teriyaki burger in Japan, McVeggie in India), with differing customer needs and limited marketing/production cost economies due to localization. Advertising campaigns can be standardized if there is a global resonating theme, but are mostly adapted (at least in execution). Sales promotion campaigns are adapted. Consumers may clip coupons in one culture but may want to bargain in another culture. Markathon: Given a task of launching a new product, how would you proceed? What are the key considerations and parameters to keep in mind? Mr. Shankar: First, a firm has to be sure that the product should indeed be launched. To pursue a business opportunity, there should be both productcompany fit (internal analysis of strengths and weaknesses) and product-market fit (external analysis of opportunities and threats). These fits could be assessed using the strategic window analysis tool. Second, the firm has to develop a strong marketing plan with the right amount of resources. Once a firm decides to launch a product it needs to consider multiple strategic factors such as scale, scope and timing of entry, likely reactions by incumbents, targeting gaps, positioning spots, etc.
markathon |february 2010 markathon |august 2011 Markathon: What interests you the most in the field of branding? How can a brand stand apart, according to you? Mr. Shankar: I am doing research in brand equity and brand extension, working with companies such Allstate insurance and Colgate Palmolive. To standout in a sustainable manner, a brand needs to create a point of difference that resonates with its target customers. However, that alone may not be adequate in todays competitive world. A brand should continuously build its value to those customers and should continuously measure, track and improve its equity and extension potential. Markathon: You are known for your expertise in digital marketing. Could you throw some light on its applications that we see in our daily lives? Mr. Shankar: Digital marketing is so interwoven into our lives today that it is hard to imagine life without it. Even a cab driver or panwala or dhobi in India starts the day reading his/her SMS or checking the voicemail. We all use digital applications---SMS, email, online search, social networking, online banking, or stock trading. Effective digital marketing comprises anticipating (not just understanding) consumer needs and touching the consumers appropriately through the right touch points (e.g., the Web, mobile phone, kiosk). Markathon: What is the most effective way of engaging the customer through interactive marketing? Mr. Shankar: Successful engagement of customers requires a deep understanding of issues of interest to customers, of the relevance of the brand to these issues, and the triggers for customer action. A sound interactive marketing strategy should continuously engage the customer through creative programs using multiple digital touch points. Markathon: What would be your word of advice to MBA students? Mr. Shankar: Dream big. Tomorrows world is full of opportunities to do be different. Follow your passion. Be creative. Embrace new insights. To succeed, be prepared to fail and learn from mistakes. Your learning of management principles and ideas doesnt stop with your MBA. Fasten your seatbelts for a ride of lifelong learning. 78
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markathon | december 2011
An Interview with Mr Shivakumar

Managing Director & Vice President - Nokia India Private Limited
Mr. D. Shivakumar is the Managing Director and Vice President of Sales for mobile phones in Nokia India Private Limited. Having done his B.E from IIT Chennai and Post-graduation from IIM Calcutta, he has handled more than 34 brands in his two decade long career, Hindustan Lever, Philips consumer electronics, Godrej Consumer products being few of the most prominent ones. With a bulk of experience in marketing and general management, he shares insights on changing consumer patterns with reference to different industries ranging from FMCG to Consumer Electronics and Nokias upcoming strategies in this competitive industry.
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Vartalaap Markathon: Tell us something about your years in IIM Calcutta. How have some of the experiences you had in college helped you over the years in your career? Mr. Shivakumar: IIM Calcutta was a very open institute. The Professors and the institute treated us like adults; it was a very healthy interaction. We never had things like compulsory attendance and it allowed us to go to the classes we wanted to, treating us like adults which most other institutes in the country fail to do. The other factor was the small batch size unlike the institutes nowadays. We had a batch of 97 students and people knew everybody else. We also had a very good mix of academic, social and extracurricular interaction. We had a good dialogue with the faculty there as well as teamwork with our peers. The students pursued things which made sense to them and there was ample opportunity for everyone which I think helped us a great deal in our careers. Markathon: You have had wide experience across the consumer electronics industry in India. How have the consumers in this industry changed over the last decade? Mr. Shivakumar: I would say not just the consumer electronics industry, but the Indian consumers as a whole. Indian consumers have always had an aspiration for brands, which has moved up significantly in the last decade or so with the explosion of media, the exposure to brands and with more international brands coming into India. Second thing is the Indian consumers fascination with design and the ability to pay for it also has moved up significantly, whether we look at bikes or cars or packaging
markathon | december 2011 etc. Packaging is no longer utilitarian; it is truly a sensory element to add to the final appeal of the product. The third dimension is how the Indian consumer has moved up on the aspect of sensory appeal of categories. Whether it is about fragrance, touch- feel every single element of the five senses. Let us take taste for example; the taste profiles of most of the food products and toothpastes have changed dramatically over the last decade. Another thing I would say is the consumer receptivity towards advertising, the whole concept of storytelling. The concept that advertising not just informs but builds an emotional bond and connects to the consumer. I also feel that the Indian consumer has shifted from a price equation to more of a value equation, so price is no longer the one-dimensional measure for whether the consumer will buy a product or not. The Indian consumer, especially the young people have taken to a big way to digital information and the internet. This growth has been phenomenal and young people have taken to technology and digital information faster than most other countries in the world.
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Vartalaap Markathon: What was the rationale behind the newlyformed India, Middle East and Africa global sales region for Nokia? Could you tell us some similarities and differences between Nokias customers in these markets? Mr. Shivakumar: If we look at India and Africa, they are similar on a lot of dimensions. India has a population of about 1.2 billion and Africa has a population of roughly 1 billion. The demography of the population is also similar, both are very young populations. The average age in India is 26-27 and Africa has an average age of about 23. When we look at passions of the consumers, Indian consumers are passionate about cricket and music; African consumers are passionate about football and music. If you look at movies, Hollywood produces about 900 movies a year, India produces about 1000 and Nollywood (which is Nigeria) produces about 2000. If we look at the role of mobile phones, in India, mobile phones are the most widely distributed and penetrated product among all the durables. The same is going to be true for Africa as well. The business model of telecom is homogenous in both these geographies. About 97% of the marketing in Telecom in India is pre-paid and 93% in Africa is pre-paid. The differences will always be there across geographies. There will be differences in terms of culture, nuances of the consumers and how the different services reach out to them. But for India and Africa, the commonalities are a lot and that is why Nokia has formed a Global Sales Region combining them. Markathon: Going ahead, how is Nokia planning to regain lost ground in the smartphone segment? What do you think will be the next big wave in this segment and how does Nokia plan to capitalise on it? Mr. Shivakumar: If we look at the global market, the world population is 7 billion out of which 5 billion people already own phones. It is estimated that about 1 billion of them own smartphones and the remaining own feature phones. Nokia started the smartphone revolution in 2005 with the N-series and over a period
markathon | december 2011 of time, a lot of things have converged in making the smartphone what it is today. I personally think Nokia with its innovation capabilities and with the newly released Windows Operation system out for mobile phones is poised well to regain its strength in the smart phones market. Markathon: What were the reasons for Nokias success in reaching out to the rural consumers in India? Mr. Shivakumar: The first was the fact that Nokia identified the market before everyone else did. Second, we also set up an infrastructure to reach out and service the rural consumer before anyone else in the market. Third, we worked with the eco-system to ensure that we could get there, like the telecom operators. We also put care of service ahead of sales, because in rural India when people are buying products, they want to be absolutely sure that there is someone there to manage or repair it for them. In terms of the brand, we spent a lot of time on awareness and visibility. For example, one of the early campaigns we ran was about security, which is a very important characteristic both in urban and rural India. I think these factors came together and helped us succeed in the rural markets. Markathon: What is Nokias strategy in dealing with low cost phone makers, the likes of Karbonn, Micromax and Spice? Mr. Shivakumar: I think I mentioned earlier about the importance of aspirational brands for the Indian consumer. I would say that it is brand and innovation which matter and not just the price. A lot of people are mistaking, what I can call amateur innovation for innovation, including the media. One mosquito repellent or a Bluetooth remote application is not innovation. Amateur innovation does not work; you need to give the consumer the right value and the genuine innovation. The history of the mobile phone markets shows that leaders consolidate and thats where Id leave my argument. Markathon: Given your experience in the FMCG industry, what do you feel are the key differences for a
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Vartalaap marketer between Electronics industry? the FMCG and Consumer
markathon | december 2011 very competitive and not collaborative and they are very bookish. My advice would be to never look at life in relative terms. Never think that you are better/worse than someone. You should always aim for the absolute best. You should never worry about relative.
Mr. Shivakumar: FMCG depends on wide distribution. India has about 10 million retail outlets for FMCG, most categories would have about 6-8 million retail outlets. However, the branding and the value of the brand is the same in both cases.
Second thing that I would say is that learn after you leave the institute. Most people stop learning after they leave college and they forget that today the world is If you look at innovation, in FMCG sector you have 6 changing at a much faster pace. What you learn in the innovations every 100 years; which means that the life institute might carry you at best for 6-18 months. Read of the next innovation is about 15-20 years. a lot and learn. When you look at your career and Innovation in the technology sector is almost every job, the first two years is about learning. Its month. In the technology sector, you have 3 unlikely that you will contribute anything. The types of disruptions- price disruption, trade time for contribution will come, but at a disruption and technology disruption. In later date. You cant join a company on the FMCG sector, none of these are Day 1 and think that you will start there to the same level and degree. contributing from Day 2. Next, You introduce successful brands, whatever you do, build the If we look at the global market, the you do a lot of variances in institution you work for. If world population is 7 billion out of the FMCG sector. In the you work for a which 5 billion people already own technology business, company, you phones. It is estimated that about 1 specifically should always be billion of them own smartphones and mobile proud of the the remaining own feature phones. phones, the company and Nokia started the smartphone life of a model build the revolution in 2005 with the N-series is about 18-24 company. Secondly, and over a period of time, a lot of months, thats all. In always work for the things have converged in making the that sense also, it is betterment of your team. smartphone what it is today dramatically different. Lastly, work for your own betterment. Quite often, young The value in FMCG is created people get that order wrong. They work through the emotional surplus through for the betterment of themselves first, advertising, the value here is through team later and the company last. what the technology and the product make the consumer feel. This is much more about a personality statement. Markathon: What is your advice for graduates in Bschools looking to make a career in sales and marketing? Mr. Shivakumar: When I talk to various people who come to recruit from B Schools, one of the common refrains people have is that the current generation is I would also say that your generation is a global generation. You can work anywhere in the world. My generation was an India focussed generation. Hence, you have to be multi culturally sensitive as opposed to multi linguistically sensitive in a country like India. You can be anywhere in the globe, and hence you are not just a manager or leader; you are also an ambassador for India.
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An Interview with Mr Jack Trout

President of Trout & Partners Ltd. An international marketing consultancy, Connecticut
Mr Jack Trout is the president of Trout & Partners Ltd. an international marketing consultancy based in Connecticut. The marketing guru is the originator of Positioning, Marketing Warfare theory and many leading edge marketing strategies. He has written many books on marketing and brand management, right from the famous Positioning: The Battle for Your Mind in 1981 to the latest Repositioning: Marketing in an Era of Competition, Change, and Crisis in 2010. In his 40 years of consulting career he has been associated with big brands like Hewlett-Packard, Southwest Airlines, Merck, Procter & Gamble, Microsoft, AT&T, Intel and many others including Brand USA, helping Democrats to regain leadership in 2006. He has gained an international reputation as a consultant, writer, speaker, and proponent of leading-edge marketing strategies.
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If you understand how the mind works, You will understand Positioning
basic definition of Positioning which is how to differentiate yourself in the mind of your prospects. Markathon: Youve been closely involved with Bajaj in India. What was the rationale behind asking them to remove the Bajaj name from all but their 2-wheeler business? Mr. Jack: Bajaj has been involved with building subbrands such as Apple (Mac, iPod, iPad). They have Discover, Pulsar and Boxer. Rajiv Bajaj has felt that this was the priority in building a portfolio of motorcycle brands. Perhaps they will re-introduce Bajaj as the brought-to-you by brand in coming months when their new retail stores are opened. Markathon How have Global Brands evolved in the last decade or so; in the context of the emerging economies becoming a massive consumer base? Mr. Jack: The scope of the marketing problem has now become the entire world because of the global economy. Places like China, India and Eastern Europe are now getting into the brand building business. China has put my positioning material into Peking Universitys business school. They are Chinas Harvard so you can see that it is a major priority as China moves from manufacturing to marketing.
Markathon: Could you tell us something about your early years, your education and how you began your career in the Advertising department at General Electric? Mr. Jack: My early years were about getting a college degree in Economics and spending a tour in the U.S. Navy flying on and off an aircraft carrier. From there it was off to General Electric and their training program in advertising and public relations. I had a choice of Procter & Gamble, IBM or GE. I chose General Electric. Markathon: What was the genesis of the Positioning concept? How and when did Al Ries and you come up with this powerful idea? Mr. Jack: It all started in 1969 with the first article I wrote on the subject. I was looking for a competitive process to describe how our advertising agency approached problems. I borrowed a military term to describe this process which is about the battle for the mind. The rest is history. Markathon: Your laws on the concepts of marketing and about influencing the mind have often been compared to Newtons Laws of Physics and yet there are companies which have failed to abide by these tenets. Why do you think the companies often fail in getting into the consumers minds? Mr. Jack: Most problems are caused by companies that use the word but dont understand the theories. Or they violate the laws because of pressure from Wall Street to grow beyond where they should grow. They lose focus. Markathon: You have had a very successful career as an author including many bestsellers. Which of those books is the closest to you and why? Mr. Jack: My favourite is Differentiate or Die. While Positioning is critical to understand, figuring out how to do it is what Differentiate is all about. It gets to the
Markathon: Do you see any key trends emerging that will revolutionise the marketing world in the coming decade? Mr. Jack: Naturally. The internet is a new tool but it is a work in progress. More and more companies are just in a learning process as to improve their marketing skills so as to better compete in the global economy. Everything old is new again.
Markathon: Any words of advice for our readers who are looking to start a career in marketing and brand management? Mr. Jack: My advice is always the same. Find some smart people to work with and a company you admire. Marketing takes on the job training.
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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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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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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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markathon |october 2011 markathon |february 2010
An Interview with Anand Khurana

Business Head, Hindustan Unilever Ltd. Mr. Anand Khurana is currently the Business Head of Out of Home (Food & Beverage Services) and Modern Foods (Bakery) at Hindustan Unilever Ltd. He has a rich experience of 14 years with HUL and has worked in Modern Trade Channel, New Business Development, Key account management etc. He has also been the senior brand manager for hair care, responsible for brands of Clinic All Clear and Nihar. Markathon: You have had a long and illustrious career in marketing in the FMCG industry, with stints both in India and abroad while working for HUL. What are the key differences in the competitive scenario in the industry in India and abroad? What are the differences in terms of marketing? Mr. Anand: Marketing quite simply is about understanding the consumer, his/her stated & unstated needs & developing & deploying a marketing mix (Brand Proposition, Product, Communication & Go-toMarket strategy) to fulfil that need. This basic premise remains the same everywhere in the world. However, the nuances of consumer tastes & preferences demand fulfilment options with respect to the retail store landscape, media evolution & consumption habits could differ by region/ country as much as they do between Mumbai & Muzzafarnagar. Markathon: You have worked in many diverse roles in HUL. What has been the most challenging task in your career till date? Mr. Anand: HUL has so many different categories & a culture of moving people from marketing, sales to business operations which makes the experience very broad based & large. Its almost like having worked in 56 different companies. I have been lucky to have moved across sales, marketing, business operations in both the India business & International operations. Each stint has been very rewarding with different challenges across my tints in brands, exports & key accounts and business leadership. Markathon: HUL has recently opened Bru World Cafs in Mumbai. What spurred the company to enter direct retail for coffee? When can we expect the pilot cafes to spread to other cities? Mr. Anand: A Caf a logical extension for our coffee brand as the segment presents a great opportunity for not just consumption but also building brand experience & premiumization. It helps us move up the value chain from product to experience delivery. This is being done currently on a pilot basis Markathon: Can you tell us about HULs plans in the OOH (Out of Home) segment in the next 5 years? What is the strategy that you are looking at for Modern Foods? Mr. Anand: More & more consumers are spending more & more time out of home, at Work (offices, colleges) Wait (at airports, railways) & Play (Malls, Multiplex, Leisure). This creates a large consumption and Brand experience opportunity. We have built a robust Beverages Out-ofHome business in the B2B space with our Lipton & Bru Tea/Coffee vending services, since 2002 & are look to continuing to scale that up rapidly. In addition we have entered the consumer OOH space with the Bru caf and Swirls ice cream parlours. Modern Foods is a very large player in the Bakery Category which is very large. Unlike other FMCG, Bread is a perishable product & requires decentralized manufacturing & a daily distribution system. Modern as a brand has a lot of equity & we have driven aggressive growth by rejuvenating the Brand by making the packing more contemporary, introducing a lot of new products like kream rolls, chappatis, cookies etc. Our strategy is to continue to leverage our strengths in Daily distribution & Bakery technology to grow the business.
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markathon |july 2011 markathon |february 2010
An Interview with Piyush Mathur

MD & President, THE Nielsen COMPANY, INDIA
Piyush Mathur is President, India for Nielsen. Appointed in May 2010, Piyush is responsible for Nielsens business activities and provides oversight for adjacent countries within the region. Most recently, Piyush was Managing Director, South Asia with responsibility for Nielsens Consumer business in India, Bangladesh, Nepal and Sri Lanka. Previously, he served Nielsen across the Indian sub-continent as well as in the Middle East and North Africa in a variety of senior capacities, including head of the Customized Unit in Egypt, Country Manager in the Indian sub-continent and Research Director heading Media and Internet studies. With diverse experience on local, regional and global levels spanning different industries, Piyush is a prolific speaker who has presented in forums throughout America, Europe, Asia and Middle East. He has an MBA and holds a degree in Mechanical Engineering.
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vartalaap Markathon: Can you tell us what prompted you towards a career in Market Research? Did you always know you were going to be in this field? Mr. Mathur: In those days, when I was doing my MBA I always disliked monotony and was a very curious guy. My interest in Market Research was because of a Project I did during my Internship period. I didnt know much about Market Research before but once I started working on the project and getting a feel for it, I felt a certain connection. I was learning a lot and felt Market Research would offer me this learning throughout my career. For example, I have now been in this field for 17 years, moving across 4 countries, 6 cities and 11 houses and most importantly interacted with lots of diverse clients, compared to a typical career in marketing where you could be associated with a single brand for almost a decade. There is substantial internal learning as well as a lot of learning from clients and through observations. Markathon: How have you seen the field of Market Research evolve over the years? Tell us about some of the ones youd term as game changing. Mr. Mathur: The way I see it, Id divide the changes into two categories, the ones that have already happened and the ones that are in a nascent stage today but have the potential to impact the industry in a big way The most important change has obviously been the fact that the industry had to kept pace with the technology revolution. Back in the 90s, we used to ask the consumers to keep notes in their diaries about their TV viewership, but now we have TV meters for it and will soon have hybrid set top boxes to gives us the data from DTH connections. Our earlier interviews were done via pen/paper, but now there are palm pilots to key in data as well as have photographs of the people. Last year Nielsen visited 25 Lakh consumers and took photos, asked questions and made IDs for them, this wouldnt have been possible without technology. These factors have now become hygiene in the industry and are necessary for all the players in it. Coming to the changes which are emerging, the first is Neuroscience or Neuromarketing. This deals with understanding the psyche of the consumer, not just at a conscious level but also at the sub conscious. Nielsen
markathon |february 2010 markathon |july 2011 acquired a company called Neurofocus, which makes consumers wear a baseball cap and than monitor the brain waves and the reaction to different stimuli. This really makes us go deep into their brains and understand whether they really liked the ad/packaging, will this actually make them buy the product. The information is available in real time and decisions can be made much faster too. Another area where Market research is changing is Forecasting. For long, we have been called as an industry akin to the rear view mirror. Research always talks about what the consumer bought a month ago but now it is starting to change, we are starting to look through the front glass. Imagine the value that would have been generated if one would have predicted the telecom boom in India which happened in the past decade. Over 10% of Nielsens business is from forecasting and we expect this to grow strongly in the coming years. Lastly, research is moving towards Listening to Consumers rather than asking them questions. Todays consumer spends a lot of time in Social Media and there is so much information already available about a particular brand in the Social Media that it needs to be analysed and tapped in the right manner. We have a joint venture called Nielsen McKinsey Incite which is into leveraging the power of Social Media and helping Clients in rebuilding their business models. Markathon: The Nielsen Company has its presence all over the world. How salient and unique are its India operations compared to the rest of the world? Mr. Mathur: Nielsen India is a significant and integral part of The Nielsen Companys operations. We currently have over 3000 talented professionals excluding the freelancers who work with us for specific projects. We also contribute a substantial amount to the global growth of Nielsen. Nielsen India does all the operations which are done at the worldwide level including retail, consumer research, social media and analytics. Nielsen in India has two very unique initiatives in India. We have started a 1 year Market Research course at Northpoint Center of Learning in Khandala with the entire curriculum being designed by Nielsen. We also provide complete faculty support to them and give the 90
vartalaap students an opportunity to take up innovative projects which they wouldnt get in a traditional MBA college. The first batch has passed out this year and most of them are joining Nielsen, which is a Win-Win for both the students and the company. We have also started an Innovation Lab in IIT Chennai with Prof. Jhunjhunwala who is leading authority in Mobile Technology. We are working on innovative ways of researching consumers and Retailers. Markathon: Nielsen has always been ahead of its competition. If you had to outline The Nielsen Companys strengths (India) , what would some of the core differentiators be? Mr. Mathur: The biggest strength of Nielsen is the talent it has. Nielsen has some of the best people among its ranks. In our country, there is an abundance of labour but an acute shortage of talent. Out of the 400 million strong workforce, everyone is running after the same 4 million talented ones. The biggest differentiators in any service industry are your people because they are the raw material and the finished product. Nielsen wants to develop individuals early in their career and groom them to become big leaders in their career. We want to be a learning organisation and seen as an Academy Company. Innovation for Nielsen is very important, not just in India but across its offices around the globe. Innovation in everything we do , We are not looking at just better, more efficient processes, rather we want to find simpler ways of doing it. We have a dedicated team of senior executives who work at a global and local level to evaluate and assess the processes followed within Nielsen and improve them constantly. Markathon: What growth/expansion plans does The Nielsen Company have for India? Where does the company see itself 10 years down the line? Mr. Mathur: Nielsen grows when its clients grow. We believe the industries in India have a tremendous potential to grow and therefore, we are on a high growth path. We have begun an initiative Grow 100%,Be 100%. We want our clients to grow and this will happen if we give it our 100%. We need to unlock our potential and give it the best shot to help our clients.
markathon |july 2011 markathon |february 2010 We want to be seen as a company which is Open, Simple and Innovative. Nielsen also aspires to become the No:1 employer of choice not just in the Market Research space but across all industries. Markathon: Market Research in India is not an easy task, compared to the western countries, where a lot of data is available in a systematic format already. Is this a major hindrance in your operations? How is it tackled? Mr. Mathur: Id like to turn the argument back on its head and say, it is a big opportunity. Since there is an immense paucity of data about Indian consumers, it is the biggest opportunity for Market Research firms to prosper in India. I had recently given a speech in TED titled Indovation , where I talked about the same problem. Since there is scarcity of secondary data, we have to indovate and find out better, simpler ways to gather the required information. The gaps have to be filled and should be seen as an prospect for growth. Markathon: What would your advice be to young graduates looking to make a career in Market Research? What should their focus be during their period of Management education? Mr. Mathur: For any student, the most important thing is to decipher his/her passion because it is passion which drives excellence. Finding out the passion though, is a lot easier said than done. One way of going about it would be to identify what work they enjoy. If they are doing a project during the internship, they could identify the specific aspect of the project which they found to be interesting and enjoyable compared to all the other areas of the project. They could make that aspect as their career. If your passion becomes your career, then there is nothing you cannot achieve. Talking about careers in Market Research, the focus should be to Learn about consumers. Observation and curiosity are key drivers of this learning attitude. Everyone around you be it friend or family is a consumer. Once they develop the knack of asking questions like, why my younger brother bought only this particular gadget, why not another one. A Market Research enthusiast would question the things most other people take for granted. Find out the reason behind the decisions. Be curious. 91
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markathon |July 2011
AN INTERVIEW WITH TARUN KHANNA

Professor at HBS, Director of Hbs South Asia Initiative
Tarun Khanna is the Jorge Paulo Lemann Professor at the Harvard Business School, where he has studied and worked with multinational and indigenous companies and investors in emerging markets worldwide. He was named Harvard University's Director of the South Asia Initiative in the fall of 2010. He joined the HBS faculty in 1993, after obtaining an engineering degree from Princeton University (1988) and a Ph.D. from Harvard (1993), and an interim stint on Wall Street. During this time, he has served as the head of several courses on strategy, corporate governance, and international business targeted to MBA students and senior executives at Harvard. He currently teaches in Harvard's executive education programs and is Faculty Chair for HBS activities in India Markathon: Youve done your Engineering from Princeton University, and also had a stint on the Wall Street. How and when did you decide to take up teaching as a career? Mr.Khanna: There was no grand plan, i was stimulated by the research and teaching environment at Harvard and simply stayed on. It remains a wonderful place where ideas mix and match from around the world, and its real fun and a privilege to participate in this. Markathon: Can you share with our readers an incident/moment which youd call a defining moment for you and your career? Mr.Khanna: When i started studying in India, in 1994 or so, most people thought it was strange to switch from mainstream technology-led business school topics (I was working on fairly conventional analytic models in strategy, in the wake of what the world was learning from the Japanese then) to studying a poor country! No one was interested in India at all, or in emerging markets. China hadnt quite grabbed the worlds attention as much as it does now. I do recall persisting despite much opposition just because it made me happy to do so. On another note, not so much a moment, but the gradual realization over the past decade that there are, as one of my now retired professors in the Harvard Economics department used to say, plenty of $20 bills lying on the sidewalk. That is, if you keep your eyes open, there are so many ways by which each of us can make a meaningful difference in lives of those less fortunate. And the recognition that this isnt so different from the Sanskrit sloka karmanyev
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dikharaste .. that is just get on with it! Markathon: Youve written a very successful book, Billions of Entrepreneurs: How China and India Are Reshaping Their Futures--and Yours. How was this book conceived? Do you see similar Entrepreneurial trends in other parts of Asia as well, apart from India and China? Mr.Khanna: Well, philosophically, i think young folks are endowed with similar intent and ambition and desires. Its just that the supporting institutional infrastruture what my colleague Krishna Palepu and I call institutional voids in our work allows the concrete and tangible expression of these ideas differently in different places .It is just that China and India, in each of their own ways, as billions of entrepreneurs,, have done a decent job of allowing some of these ideas to come to fruition. Others can, and are working on it of course. Markathon: Tell us something about the Harvard South Asia Initiative. What are the long term goals and the significant milestones it has achieved? Mr.Khanna: I took it over about six months ago from my colleague the eminent historian
professor Sugata Bose. We have tapped into an enormous reservoir of enthusiasm at Harvard for work in South Asia, across the disciplines and professions, and also exuberance in South Asia for connecting to an institution of learning. I feel that we can go from strength to strength and lay a solid foundation over the next little while. We now have on-the-ground presence in South Asia, a growing organization in Cambridge, concrete manifestation in numerous seminar series on site, in-region activities sponsored frequently in India and Pakistan, a huge uptick in student interest in South Asia, and so on. So were all very excited about this. And the Harvard administration, the President and Provost, are solidly behind this effort. Markathon: India is now becoming a booming business hub and the demand for managers at the executive level has certainly increased. Has there been a huge spurt in the management programs HBS conducts in India? How are the programs being tailored for India? Mr.Khanna: At HBS, we run our India research centre from Mumbai. Anjali Raina heads up a superb team. We also have a complementary team supporting Executive Education
in India. Last year we ran three one-week-long programs in Mumbai. Next year, we hope to run five or six such programs. There is a lot of interest. But we are not seeking to be a mass market entity. Rather we seek intellectual exchange and catalytic effect. We would like to help, support and learn from Indias change agents. Markathon: Could you share with us some of your thoughts on the major differences that you see in Management Education in India and Overseas? Is there a huge gulf? Is it narrowing down? Mr.Khanna: India has a long tradition of Management Education, which distinguishes it from other emerging markets, including china. India also has a unique opportunity to leverage its unique contextual circumstances to support the generation of managerial insights for managers and entrepreneurs, that also will be relevant for other so-called south countries and indeed for the entire world. Markathon: Any advice for our readers? Especially the ones who want to start their own companies. Mr.Khanna: Go for it. Its hugely important and great fun
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markathon |february 2010 markathon |july 2011
An Interview with Al RIES

BEST SELLING Author & FATHER OF POSITIONING eRA Al Ries is also the cofounder and chairman of the Atlanta-based consulting firm Ries & Ries with his partner and daughter, Laura Ries. Along with Jack Trout, Ries coined the term "positioning", as related to the field of marketing, and authored Positioning: The Battle For Your Mind, an industry standard on the subject. Ries graduated from DePauw University in 1950 with a degree in liberal arts and accepted a position with the advertising department of General Electric before founding his own advertising agency in New York City, Ries Cappiello Colwell, in 1963. The agency later changed to a marketing strategy firm, Trout & Ries. Ries was selected as one of the most influential people in the field of public relations in the 20th century by PR Week magazine in 1999. Ries has also written a number of books on Marketing and Branding that have made the BusinessWeek best seller list on a number of occasions.
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vartalaap Markathon: Youve had an illustrious career spanning from Liberal arts, to advertising, to marketing strategy and now a Consulting firm. How has been your journey through all these diverse assignments? Mr. Ries: It's like a journey through an enormous country. Every stop has taught me something new and different. I don't think I could have ever worked at a traditional job for a traditional company. Doing the same thing over and over again would have become extremely monotonous. Markathon: You came with the Postioning era in 1972 and Marketing has never been the same, How do you see the companies in todays fierce competitive environment taking the concept of Positioning forward? Will it be tweaked? Mr. Ries: Positioning has become famous, but many of our positioning principles are still violated every day of the week. Therefore we have a big job to do to convince companies that there is a different approach to what they are doing. Take the "line-extension trap," which was one of our basic positioning principles. As we wrote in our first article on the subject, Just because a company is well-known in one field, doesnt mean it can transfer that recognition to another. In other words, your brand can be on top of one ladder and nowhere on another. And the further apart the products are conceptually, the greater the difficulty of making the jump. That was 39 years ago. Regretfully, line extension is still the preferred marketing strategy for many companies. Markathon: Youve written many Bestselling books, which one of them is the closest to your heart and why so? Mr. Ries: You always favor your last book. My last book was "War in the Boardroom," written with my daughter and partner Laura. Some people are
markathon |february 2011 markathon |july 2010 left brainers and some people are right brainers. I'm convinced that top management of most companies today are left brainers: verbal, logical and analytic. On the other hand, most marketing people are right brainers: visual, intuitive and holistic. The two sides are destined to clash. (And in my career, I've witnessed hundreds of those clashes.) Actually, we believe that companies need both types of people to be truly successful. But both sides need to understand each other. That's the objective of the book. Markathon: Youve had consulting experiences with some of the biggest brands in the world; can you share with us one of these assignments which youd call the most challenging one or a memorable one? Mr. Ries: We can't talk about any recent assignments for confidentiality reasons. But a constant theme of many of our assignments was to keep the company's core brand focused and expand the company's product line by introducing new brands. And naturally, company management wanted to expand its existing brand. That's what we call the line extension trap. We argued with IBM about the need for a new brand for its line of personal computers. Instead, IBM line-extended its brand. After 23 years and a reported $15 billion in losses, IBM sold its personalcomputer operations to Lenovo. We fought with Xerox about the need to launch a desktop laser printer line to compete with HewlettPackard. Xerox had invented the laser printer (the first one was driven by a mainframe computer) but didn't think the market was ready for a desktop
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vartalaap version. They waited too long and got shut out of the market. The Xerox situation illustrates a common problem of many companies. Management tends to try to predict the future and make decisions on what is likely to happen. Xerox management was convinced that the desktop laser printer had no future, so decided not to waste money getting into the market. Our position is that companies should invest in potential new categories and treat their investments as "insurance." If a company gets in early and the category does take off, then the company will be in a good position. Xerox used to be a much bigger and more profitable company than Hewlett-Packard. But they lost the desktop laser printer market to Hewlett-Packard. Today, Hewlett-Packard is six times the size of Xerox. Sometimes one key decision can mean the difference between enormous success and mediocrity. Markathon: Youve emphasised the need to build Brands by Publicity and not Advertising in your books. What would you term as the essential differentiating factor between Publicity and Advertising? Mr. Ries: Credibility: Advertising is not nearly as believable as publicity. But we're not opposed to advertising. After a while, a company runs out of PR potential. No publication today, for example would run a story about a wonderful new drink called Coca-Cola. The only stories they run about Coke are negative. That's why after a certain amount of time has passed, a company needs to shift its marketing programs to advertising. Our philosophy: PR first, advertising second. Markathon: Can you share with us a couple of trends which you think will impact the world of Marketing in a big way in the coming decade? Mr. Ries: Marketing can be roughly divided into strategy and tactics. Strategy is more important, but it's almost impossible to predict a trend in strategy. Tactics are easier to see. There' s no question that marketing is moving into the digital era, an era that has spawned
markathon |july 2010 markathon |february 2011 social media and many other digital techniques. There's bound to be many, many developments in the digital era that will affect how marketing is practiced. Keep in mind, however, that tactics are not a substitute for a good strategy. Without a good strategy, a company cannot win, even though it might have good tactics. Markathon: Would you like to give any advice to our readers who are looking to make a career in the field of marketing and brand management? Mr. Ries: Read especially the newspapers and magazines that cover global businesses. In America, that would include publications like The Wall Street Journal, Business Week, Fortune and many others. If you want a long-lasting career in marketing, you need to know what is working and what is not. Take Apple, for example. Apple has become the mostvaluable high-tech company in the world. What is Apple's strategy? Create a new category you can be first in and then dominate that category by launching new brands, the iPod, the first highcapacity MP3 player, the iPhone, the first touchscreen smartphone, the iPad, the first tablet computer. Apple is not a brand name. Apple is a company name. Nobody says "I bought an Apple." They say "I bought an iPod." Or "I bought an iPhone." Or "I bought an iPad." This is just the opposite of the line-extension strategy of Apple's competitors. Now do you suppose that would change the minds of the millions of people who believe that line extension is the best strategy for a company? Of course, not. They don't read; they don't think. They just cling to an idea that might make sense, but doesn't work. Always check your theories against what is working and what is not working. And the only way to do that is to constantly read the business media. Markathon: One last question, what keeps Al Ries ticking? And are there any other books you are currently working on? Mr. Ries: My daughter and I keep finding new ideas to think about and to write about. Laura is working on a new book that I believe will be exceptionally well received. What it is about we want to keep secret for the moment. 96
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An interview with Arvind Singhal

Founder & Chairman Technopak Consultants
Arvind Singhal is the Chairman of Technopak since 2002. He launched Technopak1991 and has been instrumental in the growth of the company from strength to strength. Arvind is professionally active at various Textile and Clothing professional associations and industry fora. He is also a regular contributor to various publications. He is acknowledged as one of the foremost experts on the Indian and International textile and clothing sectors. Prior to Technopak, Arvind has worked with Modern Suitings, VXL India Ltd, OCM Woolen Mills, DCM Group (Shriram Pistons & Rings), and then DCM Data Products.Arvind is an MBA from University of California, Los Angeles, USA. He has done his Bachelor of Engineering (Electronics & Communication) from University of Roorkee. He has also been a regular columnist for Business Standard with the column , Marketmind which focuses on the pulse of the Indian Market. Markathon: Tell us something about your early years, doing an MBA and then working in DCM and OCM Woollen Mills. What was your major learning then? Mr Singhal: I graduated from University of Roorkee (as it was called then, now IIT Roorkee) in 1979 with an Electronics & Communication degree. In the early years at Roorkee, I had realized that my interest lay in general management with marketing as the specific area to focus upon. I was fortunate to be selected as Management Trainee with the DCM Group at the time of my graduation, and joined Shriram Pistons & Rings as a Management Trainee. It was one of the best decisions I could have taken at that time and in hindsight, I look at that period as an invaluable onthe-job preparatory training before an MBA. While
at Roorkee, I was fortunate to have bagged a Rotary Foundation scholarship to study for an MBA in the USA, and I chose to join UCLA where I graduated with a customized major with focus on Marketing, Finance, and MIS. There were several learnings in the period 1975 1982 covering University of Roorkee, Shriram Pistons, and UCLA (Los Angeles, USA) but among the most valuable ones included the need to dream big; to have an open, inquisitive mind; initiative; hard work; and to have an all-round, well-rounded personality. On completion of MBA, I returned immediately to India (after a 12 week back-packing trip in the USA & Europe) and joined DCM Data Products as a sales executive for computer systems. In 1985, I joined Birla VXL (OCM Division). That was my very first exposure to general management, and in 1987, I was fortunate to be entrusted with the responsibility of becoming the head of marketing for OCM. The three and a half years in that capacity were also one of the most formative ones for me as a manager and laid the foundation of my taking the plunge as an entrepreneur. Technopak was started on 1st January 1992. Markathon: How was the idea of founding Technopak conceived? Did you always know you were going to start a venture of your own when you were studying? Mr Singhal: I was reasonably sure, even while at Roorkee, that someday I would own and run a business enterprise of my own. However, till almost 6 months before the start-up of Technopak, I was not very clear as to what venture I should and could start. The decision to start a consulting services firm was largely influenced by the near lack of financial capital, and
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hence the only capital I could leverage was what is now known as intellectual capital. However, the dream and determination was very, very clear from the day Technopak was conceptualized that it would be one of the most successful, top-notch, and highest-quality businesses with an aspiration to be counted in the peer group that would have worlds best firms e.g. McKinsey, BCG and others. Markathon: Technopak has been at the forefront of the Indian Consulting industry for a long time now. What do you reckon is the greatest strength that Technopak has? What is the one thing that gives Technopak the edge over others? Mr Singhal: I had no choice but to make our firm work harder and smarter if it had to be given any chance of succeeding and be counted in the same league as the global giants. The strategy which I chose for Technopak was to become an ultraspecialist firm with an unparalleled depth and width of service offer in the verticals it would choose to operate in. Further, Technopak was also built-for-India despite it trying to learn whatever it could from worlds best practices. Finally, right from very early stages, Technopaks service offer ranged from business strategy to nearly all aspects of implementation. All of these factors allowed Technopak to differentiate from its illustrious and very formidable competitors, and create a niche for itself. There are many factors which give Technopak a fighting chance to compete strongly and compete successfully. Some of these include its ultra-sharp focus on each of its core verticals (now divisions, which include Textile / Fashion, Retail / Consumer Goods, Healthcare, Education, Food & Agriculture, and Leisure / Tourism); its very substantial and ongoing investment in acquiring proprietary intelligence and market information relating to each of its sectors; very strong consumer-insight
orientation; and a very diverse talent pool compared to any other consulting firm in India. Technopak operates across different verticals. Is there a thrust towards any particular vertical? Is Technopak looking towards other verticals as well for its growth? Mr Singhal: Technopaks choice of sectors to operate in is largely guided by the size of the sector and the state of its evolution (the bigger but more fragmented and unorganized it is, the more is the attractiveness of the same even though such sectors have very limited consulting potential in the initial years). Technopak is not looking to add, in the near future, any new sector beyond the 6 listed above. Instead, the focus is to add new service lines for these sectors. There is no specific thrust towards any specific vertical other than the fact that some verticals are mature ones (Textile, Retail) and some are in the coming-of-age phase (Healthcare) while some are in the nurturing phase (Education, Food & Agriculture, and Leisure / Tourism). Hence, different quantum of energy and other resources are allocated based on specific needs of the specific vertical. Markathon: Where do you see Technopak in the future, say 10 years from now? Mr Singhal: It is very difficult for me to envisage the Technopak of 2020. This is largely because of two factors. Firstly, in the recent years, I am coming around to a belief that the future of Management Consulting (and management consultants), as we know it today, is quite bleak. I have some thoughts on what the future may be and accordingly, I am trying to morph Technopak into a very different kind of entity than what it is today. Secondly, I would be turning 53 this year in August, and would like to phase out of an operational role at Technopak as soon as I can make this happen. The then leadership of the firm
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would have a major role in shaping the future of Technopak. Markathon: Youve had a very successful column Market Mind with Business Standard for 7 years now, what keeps you ticking as a writer? If you had to tell us a couple of lines about how the pulse of the Indian consumer has changed over the last decade, what would you say? Mr Singhal: Market Mind in fact is almost 10 years old. However, just a fortnight ago, I have decided to close the column since some kind of a fatigue has set in. I do, by the way, write frequently (though not on a set frequency) for many other publications too. Sometime soon, I intend to start at least 2 (and possibly 3) columns in 2 different newspapers. One is likely to be a monthly piece focusing on manager / entrepreneur as a human being and hence the theme will be more on the individual rather than his / her profession. Other is likely to be a modified version of Market Mind but with a monthly frequency. The third is likely to be a bimonthly, slightly longer column which would be very data-heavy but relating to the 6 core sectors of Technopaks focus. When I started Market Mind 10 years ago, I had never envisaged that I would like being a columnist so much. Now, writing seems to like a muchneeded fix! I wish I could tell in a couple of lines how the Indian consumer has changed in the last 10 years, other than saying that if the change in the last 10 years has been amazing, then the change in the next 10 will be totally spectacular! Markathon: Any words of advice for our readers, the young graduates aspiring for a career in marketing and the world of consulting and also the budding entrepreneurs?
Mr Singhal: There are several pieces of advice I would love to give and perhaps, I would have an opportunity to visit the Indian Institute of Management Shillong campus sometime to do it in person. However, at this time, I would only like to mention that the world of management and the world of management consulting will undergo dramatic changes in the next decade. Hence, IIM S graduates should spend some additional time and effort trying to do some crystal-gazing of their own and then decide on their career ahead. Following todays conventional wisdom may be fraught with hazards. To the budding entrepreneurs, the message would be to dream and continue to dream, but then start small and start pragmatic. The proverbial startingup-in-a-garage approach still works, and is likely to work in the future!
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An Interview with David Aaker

Brand Consultant and author
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David Allen Aaker (born 1938) is a consultant and author on the field of marketing, particularly in the area of brand strategy. He is currently the Vice Chairman of Prophet, a global brand and marketing consultancy firm, Professor Emeritus at the Haas School of Business of the University of California, Berkeley and an advisor to Dentsu, a major Japanese advertising agency. He has been called the 'father of branding' and blogs on Aaker on Brands. He received his B.S. in Management from the MIT Sloan School of Management and subsequently attended Stanford University where he received his M.A. in Statistics and Ph.D in Business Administration.
Markathon: Tell us a little about your college years in MIT Sloan School of Management and then at Stanford. How were they influential in shaping your career? Mr. David: A complete story is in my biography From Fargo the World of Brands. At MIT I was in the Sloan School where I was exposed to the quantitative side of marketing. At Stanford I studied statistics and marketing and began my career as a quantitative model builder. Markathon: You have been called the Father of Branding. When did you first get interested in Brands? How did you realise that branding and strategy was the career for you? Mr. David: After doing research and writing books in strategy I came to the conclusion that firms are too focused on short-term financials and needed to instead build assets. Given my background in advertising and marketing research in addition to strategy, I decided to focus on brand assets. My goal for the last two decades has been to advance the knowledge and practice of branding with a strategic perspective. Markathon: What would you say is the single biggest and oft repeated mistake most companies make with respect to Brands/Branding? Mr. David: A perception that branding is tactical, something that can be delegated to an advertising manager or logo creator. The challenge is to get people to recognize that a brand and a brand portfolio is the enabler of a business strategy. Markathon: Your latest book is, Brand Relevance: Making Competitors Irrelevant. What is the essence of the book and who do you think should read this book? Mr. David: The book Brand Relevance: Making Competitors Irrelevant discusses two ways to compete. The first, to win the brand preference competition with my brand is better than your brand marketing in an established category or subcategory. Incremental innovation is a basis for competing and resources are expended on communicating more effectively with cleverer advertising, more impactful promotions, more visible sponsorships, and involving social media programs but such efforts rarely break out of the clutter. The problem is that incremental innovation and investments in marketing rarely change the market share structure because customers are just not inclined or motivated to change brand loyalties in established markets. The second, to win the brand relevance competition by creating new categories or subcategories for which competitors are irrelevant, is a route to growth and profitability. This route to competitive success is about developing offerings that contain must haves that define new categories or subcategories. Winning under the brand relevance model, now very different, is based on being selected because competitors were not relevant rather than not preferred, a qualitatively different reason. The result can be a market in which there is no competition at all for an extended time or one in which the competition is reduced or weakenedthe ticket to ongoing financial success. The brand relevance strategy involves transformational or 102
vartalaap substantial innovation and an organizational ability to sense changes in the marketplace and its customers, an ability to commit to a new concept and bring it to market. It also requires a willingness to take risks by going outside the comfort zone represented by the existing target market, value proposition, and business model. I think that brand relevance explains market dynamics because new categories and subcategories are what drive market dynamics. Any manager facing a dynamic market will benefit from this book. Markathon: What causes brands to lose relevancy? Mr. David: One way to lose relevance is when brands remain strong but customers start buying another category or subcategory. If customers are in the market for a hybrid sedan, it does not matter how loved your minivan brand is. Your brand is not relevant, it will not be considered. The challenge is to recognize the emergence of new subcategories and find a way to either be relevant to or defeat the new subcategory. Markathon: Which has been your favourite book among the 15 bestsellers, and why? Mr. David:
markathon |june 2011 markathon |february 2010 Mr. David: In all capacities I like the idea of providing rigorous thinking and research to the major practical issues facing business executives.
Markathon: What is in store next for the readers? Are you working on another book anytime soon? Mr. David: My next book might be Aaker on Brands where I identify 25 key brand concepts.
Markathon: What is your advice for graduates in Bschools looking to make a career in branding and brand strategies? Mr. David: I think people should follow their passion whatever it is. I would learn as much as possible about brands from different perspectives and then try to get an entry level job where you are exposed to great brand efforts.
Managing Brand Equity was very influential because it defined brand equity and explained why a brand had value.
Building Strong Brands had the most impact with some 150,000 books sold around the world. There are many firms that use the model to manage their brands. I wish more of them had bought Brand Leadershipin which the model was expanded and elaborated. The portfolio book was the only one to really address the portfolio question. I think the relevance book probably has the most original single idea. Markathon: You have juggled the roles of an author, a consultant and a B-School Professor. Which role is the one you enjoy the most or has been the most satisfying for you personally?
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An Interview with MORGEN WITZEL

Author of Tata Evolution of a Corporate Brand
Over the past 20 years Morgen Witzel has established a international reputation for innovative thinking and clear incisive writing about a range of management issues in books, newspaper columns, journal articles and online forae. His work has been translated into many different languages including Chinese, German, Greek, Japanese, Korean, Polish and Spanish. Morgens work encompasses writing, teaching, research and editorial work with a particular interest in the history of management and management thinking. His most recent book, Tata: the Evolution of a Corporate Brand is a full length study of the origins and development of Indias most famous brand, and indeed one of the worlds most valuable brands. This book combines historical analysis with an in-depth look at the brands reputation in the eyes of its stakeholders and has been on the Indian bestseller list since its launch in August 2010. Already in the lists of the best business books in India, this book will be available worldwide from 27 April 2011.
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vartalaap M Markathon: You are known for your interest in the history of management and management thinking. From an undergraduate degree in history to a management thinkerwhat intrigued you about the field of management and how did you bridge the gap? Mr. Morgen: When I first got involved in management, I naturally started looking at histories of management. I was surprised to find that most only go back a hundred or a hundred and fifty years, when management as an academic concept was first invented. Yet large businesses had been around for thousands of years before. That posed the question in my mind: how did the managers of these pre-modern businesses run their enterprises? What did managers do before management was invented? And if you look at individual disciplines the problem grows even stronger. Business strategy, for example, was first recognised as a discipline in 1961. That means that I am older than business strategy! So what did the big multinational and international businesses of the nineteenth century, or seventeenth century, or fifteenth century, do when it came to making strategy? That has been one of the subjects of my inquiry ever since. Markathon: In your own words History and management are not words that you often find together. How important and relevant is it to understand the past in the world of management where dynamism and chaos are omnipresent? Mr. Morgen: Put it this way. You cannot truly know an organisation unless you understand its culture. And you cannot truly know its culture until you understand its history. What an organisation has done in the past, how it has evolved, the decisions and choices its leaders have made, all condition the organisation. You are quite right to say that dynamics and chaos are omnipresent. But in fact, one of the lessons of the past is this: they always have been. Look at the pace of technological change in the late nineteenth century, across every field of engineering and science, when breakthrough innovations were occurring every year. Look at the geopolitical chaos in which businesses operated in earlier centuries; they faced levels of risk we would regard as intolerable today. If we look at how our business ancestors dealt with these and other problems, we can learn a lot of valuable lessons about how to solve our own problems today. Markathon: Having studied both Indian and Chinese markets, what do you feel are the key differences in the business environments that marketers should take note of? Mr. Morgen: Fascinating question. The differing roles that governments play is a key one. I see China as a state-controlled economy which is heavily influenced by the free market, while India is a free-market economy which is heavily influenced by government. In both cases, make sure you understand what role the regulators play and
markathon |february 2010 markathon |june 2011 when and how they are likely to intervene. But you know, I think there are also a lot of similarities. Both countries have large aspirational middle classes and burgeoning youth markets, for example. And there is another important point too: it is really hard to generalise about markets in countries of a billion-plus people. There are big differences in markets between north and south India, east and west, and that is true in China too. I would argue that marketers need to take a regional as well as a national focus when working in these countries. Markathon: What, according to you, are the essential characteristics of a successful manager and how can one work to imbibe them? Mr. Morgen: The first essential quality is fairness. Treat others as you would expect them to treat you. Do this, and nine times out of ten you will be respected for it. The second is courage. You will be called upon at times to make decisions that involve risks: to your company, to yourself and your career. Have the courage to accept the risks and make the right decision. Third, be yourself. Dont put on an act for employees, customers, anyone. In a world full of dynamism and chaos, truth and honesty are valuable qualities and very probably, a source of competitive advantage. Markathon: We would love to learn about your experiences while writing Tata- The Evolution of a Corporate Brand. Is there
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vartalaap anything that stood out during your research? Mr. Morgen: The thing that still stands out in my mind is the sheer persistent emphasis on values. I had worked with values-driven organisations before but never one where values played such an important part in everyday management. It made me see how a strong value system can really add power to organisation, and value to its brand. I was also seriously impressed by the quality and commitment of the people I met, at all levels of the group. Unlike most managers in most businesses I meet, these people really believe in something. And that commitment too is directly responsible for the power of the brand. Markathon: With the date for the announcement of the successor of the Tata Group being set as early May, the group is in news yet again. What are the leadership skills of Ratan Tata that have set the group apart, and that the successor must have? Mr. Morgen: To my mind, the most important legacy that Ratan Tata leaves behind is the Tata corporate brand. He led the process of creating that brand, which in turn has played big role in pulling the group together and focusing it. For his successor, managing that brand and continuing the process of turning it into an international brand is going to be the big challenge. In terms of leadership skills, well that just means the basics of good leadership: uniting people, inspiring them, giving them direction and then giving them the freedom to create and to achieve their goals. Markathon: According to you, what are the 3 most important things that help build a corporate brand and make it stronger than individual product brands? Mr. Morgen: To me, it is the same three principles that I identified as embedded in the Tata brand: trust, reliability and commitment. The last can take many forms: commitment to the service of the community, as in the case of Tata, or just commitment to customers and a desire to keep delivering them the best possible value, as in the case of a brand like Apple. Basically it comes down to making a promise and keeping. There is a book which has just come out, Beyond the Familiar, by Patrick Barwise and Sean Meehan, which I encourage all brand managers to read. It makes the point that the brands that make promises and keep them, day after day, year after year, are the ones that succeed in the long run.
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Markathon: A word of advice to all the budding managers who are on the brink of entering the business world. Mr. Morgen: Much as I said before. Be fair to others, be true to yourself, and have courage. And above all: enjoy it. In all of history there has probably never been a better time to be in business than today. There are huge challenges out there. But you know what? There are also huge opportunities. Spot them, seize them, run with them, and you will be rewarded not just with money but with a wonderfully fulfilled career.
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An Interview with Santosh Desai

MD & CEO, Future Brands India Pvt Ltd.
Santosh Desai is MD & CEO of FutureBrands India Pvt Ltd. which is a brand consultancy firm, part of the retail chain leader Future Group. Prior to this, Santosh Desai was President of McCann Erickson India. He is an IIM Ahmedabad graduate with over 21 years of experience in advertising. He has been a key-note speaker at advertising forums in India, Singapore, Kuala Lumpur, Colombo, Lebanon, Bali etc. He has also addressed the boards of several Multinationals including Hersheys, Microsoft, Unilever, Coke & Reckitt Benckiser. He is also a thought leader in understanding the relationship between culture and brands and the consumer as a product of his or her cultural context. He is the author of City City Bang Bang, a very popular weekly column in The Times of India.
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vartalaap Markathon: Tell us about one incident/moment from your college days at IIM Ahmedabad that, in retrospect, changed your career. Mr. Santosh: There was no life changing moment for me as such when I was at IIM Ahmedabad. It was about 6 months after I had graduated from IIM A that my career took a turn. I had taken up a job at an advertising agency immediately after graduation and the agency was in a pretty bad shape and deformed. It was a complete accident that I met a senior of mine from IIM A after catching a film. We got talking and he was working in Ulka which is now FCB Ulka and they were looking for people. I had an interview with them and that is how my career changed. I even happened to meet my wife while working at the agency. Markathon: CEO, Author, Social Commentator, Advertising Professional, Marketing ExpertWhich role has been the most challenging for you? Mr. Santosh: The role of an Author has definitely been the most challenging for me. My book, almost 90% of it is an update of my earlier work, but even then it was very challenging since I had to look at everything from a macro sense. When dealing with articles and issues, the analysis is more on an individual level, a single incident, a single brand or a single aspect. In the case of a book, it is far more broadened and hence tougher. Writing a book also involves a lot of discipline and has a certain way of thinking associated to it. Another difficulty was the topic itself, India has such a vast history and so many different perspectives to it -that made it tougher for me to mould it into a single book. The role I enjoy the most is that of writing articles. Since I usually write about 2 pieces a week, it requires me to be mentally alert. Writing also gives a sense of participation in the things happening around you, since you can voice out your opinions. It helps me look at things from fresh angles all the time and leads to newer ways of understanding people and systems. Markathon: Your book Mother Pious Lady and your blog on Times of India City City Bang Bang talk about the Indian culture and take a refreshing and contemporary look at Indian society. In fact, most of the multinationals come to you because they believe that no one understands the Indian consumers as well as you do. How important is it to understand the customer? How can one gain deeper insights into the minds of the customer? Mr. Santosh: The first thing is to avoid thinking of the people as consumers or customers; being a customer is only a small part of what people are. Companies should see the people around them as friends, brothers, sisters, cynics, ideologues and so forth. For everyone, consumption is a means to an end and funnel to fulfilling their other desires like significance, meaning, emotional
markathon |february 2010 markathon |july 2011 attachment, satisfaction and the likes. Marketing is as much about anthropology, evolution of cultures, psychology as it is about statistics and pricing. Marketeers often fail because they do not acknowledge the customers emotions and needs fully. For example, a product like a lipstick, is more than just a make-up accessory, it signifies a womans aspirations, identity etc. It is therefore paramount for the companies to redefine the term customer in a much broader sense and widen the scope. This will definitely help them understand the customers better and cater their offerings accordingly. Markathon: Do you have any other books in store? Any ideas you are working on? Mr. Santosh: There are several thoughts which I have in the pipeline but I havent really decided on which one I am going to start working on first. I have an idea about seeing India through its cinema and how cinema has shaped the culture and aspirations of the Indian masses over the generations. I also want to look at the idea of Change in itself in the Indian context. I can zero in on one of these ideas and hopefully start working on it soon Markathon: Tell us something about Future brands and the idea behind such a firm. What makes it different? Mr. Santosh: The idea for Future brands came from the Future 108
vartalaap Group CEO Mr Kishore Biyani. He had a pretty good thought about the need for a branding company which understands India. He had a clear vision of what the company should be doing. Most of the brands we see in India are multinational brands, which have been created elsewhere. Branding in India is more of a maintenance activity rather than that of creation. Futurebrands wants to be instrumental in the creation of full-fledged Indian brands and not just private labels development. Future brands also does a lot of consulting work for clients like Pepsi, Godrej, Madura Garments, and Britannia etc. There is a lot of effort put in behind the consulting work we do. Recently we carried out a 54 town study on the smaller towns in India deciphering the market needs, consumer perceptions and other factors. The combination of being an application oriented organisation and also a consulting company makes us very unique with possibly no other parallel in the world. Markathon: For every successful brand, there are an umpteen number of failures. Do you see a common cause for most brand failures in the Indian context? Mr. Santosh: Finding out a single cause for failure is obviously difficult since the reasons vary across different failures. Yet, there is a common theme which is prominent among most of the failures. The companies are not trying hard enough to be relevant in a meaningful way. Companies are operating at a very shallow level and their mental model is flawed. Strategies, plans are made because either somebody else followed a similar strategy; someone in the top management told them to do so or maybe because of some other internal reasons in the organisation. This mental model is working only off the surface and is akin to shooting in the dark. Consumer understanding needs to be much deeper; it is not an exact science. Most companies depend on predictive research to make their branding strategies. Predictive research is a very difficult concept to apply successfully in a real world scenario especially in a market as diverse and varied as India is. This gap needs to be looked at and addressed accordingly before launching a brand. Markathon: You had once mentioned that B school students need to go beyond B School education. Keeping this statement in mind, how can B school students learn beyond cases and books? What is your advice for graduates in B-schools looking to make a career in sales and marketing? Mr. Santosh: I am a big critic of the kind of B-School education which is going on in institutes today. The orientation provided in the classroom learning is pretty narrow in nature and doesnt necessarily make the student ready for the industry. The institutes do a pretty good job when it comes to talking about
markathon |july 2011 markathon |february 2010 concepts, frameworks and analytical issues. These frameworks are often applicable to ideal scenarios whereas reality is far more complex, intertwined and messy in nature. The Bschools abilities to cater to these needs are very poor. The Operations view of Management has to change. Management is generally treated like an illegitimate child of all disciplines and is not given due recognition. Management should be more open to drawing from social sciences since most actual businesses are run on the basis of social and psychological issues. Even the way in which Organisational Behaviour is taught in B-Schools leaves a lot to be desired. There are two basic divisions of people; the first is those who manage. Managing is all about resource allocation and has a pretty narrow view. The others are what can be termed as creators. The world needs these kind of people; individuals need to take on roles of creation. Creation in terms of being entrepreneurial, creating systems, processes and shaping organisations. Understanding human psychology and having an anthropological viewpoint is extremely essential for the people who want to take on the role of creators.
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An Interview with Shashank Sinha

President, International Business, Godrej Consumer products ltd. (GcPL)
Shashank Sinha is President, International Business, Godrej Consumer Products Ltd. (GCPL). An MNC veteran with more than twenty years in FMCG multinationals, Shashank has wide international experience in a variety of leadership roles with Sara Lee Corporation and Reckitt Benckiser plc. He was the President and CEO of Sara Lee South East Asia from 2005 to 2008, based in Malaysia. Prior to that, Shashank was based in Paris as the President of Sara Lee International, with global responsibility for the Kiwi brand. He has also served as the Regional Marketing Director of Sara Lee Asia Pacific, based in Singapore, and as the General Manager & CEO of Sara Lee China based in Shanghai. Shashank has a background in engineering. He received his Master's in Management in 1987, with a PGDM from IIM Lucknow's first batch.
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vartalaap Markathon: You were in the first batch to graduate from IIM Lucknow. How was the experience of being in the first batch, and what lessons did it teach you? Mr. Shashank: Since we were starting off a new journey, for us, it was an exciting process of cocreation because it was more than just being the first batch of the students. We were part of the formative group which gave shape to the way in which the institute would evolve in the coming years. The first batch was pretty small in terms of the number of students as well as the faculty and staff and each of us felt a sense of mission and responsibility since we were the pioneering batch. This also blurred the line between the teachers and the students. When I look back at it, I realise that those were the first serious roles of responsibility thrust upon us as the students of IIM-Lucknow. We had a chance of learning by doing as opposed to just learning things in a classroom. All the students were involved in a large number of activities right from the PGP committee, the placement committee and the likes. Markathon: You have been involved in managing FMCG businesses in a number of emerging markets ranging from Latin America, Africa, Asia Pacific, India and China. How is the competitive scenario in these markets different? Mr. Shashank: There is a certain common theme running through the emerging markets. As marketeers and as business people, we focus more on the similarities rather than the difference. This is how Multinationals operate- having a global brand, a global philosophy and focussing on the commonalities and similarities between the various countries and consumers. An extreme example would be that of Coca-Cola. Addressing the question, the term emerging markets is pretty broad and there are various niches and segmented markets within these emerging markets. From my experience in Latin America, Asia and Africa, there are basically 3 different kinds of markets. There are Developing Markets which are sometimes clubbed under Emerging Markets but these are actually developing , markets like Chile, Argentina, Brazil, India, Tunisia, China these are not emerging, these markets are already emerged and their case is well established and impact is widely acknowledged. At the other end of the spectrum are the Frontier Markets, these are ones that are just about emerging. Markets like Angola, Morocco, and Ivory Coast in Africa. In Latin America we have markets like Bolivia, Ecquador, Peru and countries like Vietnam and Cambodia in Asia. These are markets which are not emerging markets yet but there are good positive signs that the demographics point towards a high potential. The potential will be realised depending on the Government policies, heavy investments and other political issues.
markathon |february 2010 markathon |july 2011 Everything else in the middle between these two extremes would fall in the class of the Emerging Markets. The competitive scenarios in most of these countries irrespective of the business sector have two distinct facets. There are the multinational corporations like P&G, Unilever, Reckitt Benckiser and the likes. These are more or less same throughout geographies. The factor which makes the competition different in the emerging markets is the strength of the local players. Countries like India have a strong number of home-grown players like Emami, Dabur, Marico and the likes. The situation is similar in Brazil and China and hence these markets are more competitive than other countries like Vietnam and Angola where the local presence is not so significant. So in terms of the competition, the developing markets have a fierce competition whereas it is relatively less in the frontier markets. Markathon: In terms of FMCG consumers looking for value, in which country/countries did you find the customers to be the most value conscious? On this value spectrum, how does the Indian consumer compare to the others? Mr. Shashank: There is absolutely no doubt about the fact that the Indian Consumer is the most value conscious. It is not about per capita income, kind of product offering in the market and its not a question of affordability either. It is more about our value system, our culture and our mind-set. As 111
vartalaap people, Indians are extremely value conscious. We are a society that grew up during long decades of Socialism when there was not a question of plenty but rather scarcity. The economy has opened up only in the last 15-20 years, but the first 40-50 years after independence has really shaped the mind-set of the Indian Consumer and made us value conscious. It is not that we dont spend when we think we required to spend. A pretty good example would be gold; India is the largest buyer of gold. Indians buy gold not because we are the richest country in the world or one with the highest per capita income, it is because Indians have the willingness to spend and realise value in buying gold.As we go down the spectrum , we find that the other emerging market consumers as a whole are a lot more value conscious compared to their western counterparts but not as much as the Indians. In emerging markets, the consumers need a specific reason for a product/service to command a certain premium in the market. Markathon: In which geographies are you expecting maximum growth for Godrej Consumer in the next decade? Mr. Shashank: Godrej Consumer as a group has laid out a vision to be an Emerging Market Multinational. For this, we have laid down the 3x3 strategy. This strategy articulates the fact that we want to be in 3 continents Asia, Africa and South America catering to 3 product segments viz. home care, personal wash and hair care. We are in the early stage of the journey and all our growth, both organic and inorganic is a result of this 3x3 plan. We have established a fairly strong presence in Africa via acquisitions and we have a differentiated product offering compared to our competitors. It is difficult to pin point which of these 3 continents will be most lucrative. We have a fair presence in South America and Asia as well but it is still in the early stages of the journey and I feel by the time we have established ourselves in all the three continents , we will have an above average growth rate of 5-8%. Markathon: Could you please throw some light on the business model followed by GCPL in foreign markets? Mr. Shashank: GCPL basically wants to have a direct presence in all the foreign markets which are of interest to us. We want to have our own distribution channels, our own management teams and processes set in place managed by us. For example, we have a business in South Africa and from that hub we look at neighbouring markets and establish a distributor presence there. Having said that, we never want to go out on a fully distributor based model. We want to operate as if we are a local company, a South African company in South Africa. We inherit the distribution channel when we acquire a company. In fact, that is a major attraction- the Go to Market
markathon |july 2011 markathon |february 2010 capability of the company and we then use their channels. From the employee point of a view, it is a completely local company. We have largely local employees and we respect the talent in these countries. We only have a limited number of top management personnel who are from India to oversee the operations. Our strong local brands and a good track record of growth help us acquire the best in class talents in these countries. Markathon: GCPL has acquired a lot of international brands over the years. What do you look for when going in for a merger/acquisition of an existing FMCG brand? What efforts need to be taken to integrate the brand into the GCPL portfolio? Mr. Shashank: What we are looking for is the thing I have already mentioned, about our 3x3 strategy. We have an M&A playbook which is defined by the strategy and vision we have articulated. GCPL wants to acquire brands which are #1 or #2 in our defined markets. We look at brands and companies which will fit into the Godrej value system and be compatible to our level of governance. There is always a checklist which we tick off before zeroing in on a company. In terms of integration, it is a fairly straightforward process. The first step is about compliance, GCPL wants to transfer its value system and make the people feel that they have become a part of the larger multinational group which is the Godrej group. The next step is about discovering synergies, 112
vartalaap synergies in cost like better procurement, better manufacturing, combined purchases etc. There are also benefits of having manufacturing units in advantageous locations in terms of cost. The other synergies are the Sales synergies. Since we acquire brands and are able to take it to neighbouring countries, our portfolio suddenly becomes double because there is a cross pollination of brands. In short, the first synergy helps us improve our bottom line whereas the sales synergy improves our top line. We stress highly on cultural integration, we want companies to become a part of the Godrej culture and embrace its values which usually doesnt happen on day one, but is very important to us. Markathon: Please tell us about some of the unconventional ways that GCPL has used to get in touch with the target audience. Mr. Shashank: At the Godrej group, we have always been at the forefront in terms of communication with the consumers as a bouquet of brands. The Godrej group products span a huge range from durables to properties and so forth. The innovative thing we have done is using unconventional media to connect with the consumers. One example was the GoJiyo campaign widely promoted during the IPL. GoJiyo.com is an internet based campaign which combines various aspects of reality television, SecondLife, consumer contests and then communicates the entire range of Godrej products innovative way. in a very
Markathon: What would be your advice to budding marketers in B Schools? Mr. Shashank: Well, thats an interesting question. In hindsight, advice is nothing new; it is often about the basics or something which youve forgotten. My advice to marketeers would be to build their careers one step at a time. A career is not a sprint, it is a rather marathon which needs to be paced accordingly. It is much better to have a Sales & Marketing experience in the early stages of ones career. I know a lot of graduates coming out of B-Schools want to skip the sales bit or rush through it and become brand managers. The graduates should realise that there is a long time ahead to become a brand manager. My personal experience is that consistency pays off, if you are in an organisation which has the wherewithal to groom you and develop you, then it pays off to stay in that organisation for a long stint. During these long stints, there are always good times and bad times. It is about negotiating through the troughs and building up on the good times. There is a premium to loyalty and premium to staying in one organisation, particularly in FMCG companies. People who have risen to the top are ones who have stayed with the company for a long time and persisted with their contributions.
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vartalaap An Interview with Ajay Manrai Professor of Marketing, University of delaware
markathon |may 2011 markathon |february 2010
Dr. Ajay Manrai is a Professor of Marketing in the Department of Business Administration and Faculty Director of the Graduate and Executive Programs at the Lerner College of Business and Economics at the University of Delaware. With a Ph.D. in Marketing from the Kellogg Graduate School of Management, North western University, Dr. Manrai talks to Markathon about cross cultural and cross national consumer research, International Marketing and his stint as a research ambassador through the Fulbright-Nehru Research Scholar Award. First, my key advice to a company expanding Markathon: Based on your interest in cross cultural and cross national consumer research, what would be your advice to Indian companies expanding overseas? What key insights are important to be successful in developing countries of the Middle East and Africa? Mr. Ajay: Well! These are really two separate questions. Please allow me to take one at a time. overseas: Work exceptionally hard in two areas namely, self-referencing criteria (SRC) on part of the company and deal with consumer ethnocentrism. There are two major obstacles to success in international marketing. SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decision. Ethnocentrism is the other side of the coin it is the resistance a company faces in acceptance of its products abroad because consumers prefer their own country products.
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Remember that cultures are not good or bad, right or wrong but simply different. The company expanding overseas ought to develop global awareness and the ways to acquire the same are Knowledge of Cultures, History, Global STEP Trends, that is, Social/Cultural, Technological, Economic/Financial, and Political/Legal trends. 2. Tolerance of Cultural differences 3. Development of Personal Relationships in Other Countries 4. Culturally Diverse Senior Executives and Managers While there are differences, I wish to point out that there are also similarities across cultures and nations. The challenge of international/global marketing demands a company to Globalize the elements of marketing mix (4Ps) to benefit from similarities in the domestic and international environments whenever possible, and adapt the elements of marketing mix to adjust to the differences in the domestic and international environments whenever needed AND TO KNOW WHEN TO GLOBALIZE AND WHEN TO ADAPT. Your second question deals with specific regions of the world. For example, most countries in the Middle East have wealth (buying power) but culturally very different than India. Islam is the predominant religion in Middle East and it is pervasive in society, politics, and business. For example, Islam does not allow payment or earning of interest income on money and thus businesses have to find alternate creative ways of pricing to incorporate cost of funds. Likewise, knowing local culture could help avoid awkward situations which could ruin potential partnerships. For example, Islamic women may run a business but they do not shake hands with men as their Western counterparts. As another example, it is an absolute no-no to carry wine bottle (as you would do in the West) if you were visiting an Islamic family for dinner invitation. In contrast to Middle East, most African countries are not wealthy and thus many 1.
marketing ideas relevant to marketing to the BOP would be more applicable in that region of the world. There is also political instability in many parts of Africa and that needs to be factored in assessing the risk in entering such markets. Markathon: How is international marketing different from marketing within the country in terms of positioning and communication strategies? Mr. Ajay: The steps involved in designing the positioning and communication strategy in international marketing are similar to the ones employed in domestic marketing that is understand the attributes/benefits critical to your target market and then effectively communicate and deliver the same. Like I said before, the key is to understand the similarities and differences across cultures and nations and then decide to globalize and/or adapt the marketing mix including positioning and communication. For example, McDonalds promotes the same high quality, clean, fast, reasonably priced fast food in USA and India and the golden arches are prominent in their advertising as well as in stores in both the countries. However, Big Mac in USA has been transformed to Mac Aloo Tikki or Chicken Maharaja in India. Likewise, Mattel, makers of famous Barbie Dolls incorporate the differences in cultures via adapting the outfits and appearance of Barbie Dolls to different cultures as illustrated in the pictures below. Interesting, Mattel had tried in the past using a standard (American Barbie) across cultures and nations and dearly paid for it in terms of loss of sales and profits. Markathon: According to you, what frameworks/models work best to capture and represent consumer perceptions and preferences? What tools are ideal for a marketer, given time and cost constraints? Mr. Ajay: Welcome to marketing research! We are fortunate that we have two pillars on which the marketing discipline rests qualitative and
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quantitative. I think both are equally important. We could gain at least preliminary insights about consumer perceptions and preferences via qualitative techniques like focus groups and indepth consumer interviews but these insights need to be corroborated by a follow up quantitative study with a scientific sample and using techniques like perceptual mapping via factor analysis and multidimensional scaling and preference decomposition techniques like conjoint analysis. For example, over time the conjoint analysis has become a very popular technique in business for market segmentation and product positioning. I think anyone concentrating in marketing ought to be familiar with both the qualitative (such as focus group) and quantitative (such as conjoint analysis) methods. Markathon: Congratulations for receiving the prestigious Fulbright-Nehru Research Scholar Award. During your stay in India as a research ambassador, you would be researching the similarities and differences in the marketing strategies of Indian companies, and multinational companies with origins in both the United States and abroad. Could you throw some light on the motivation for the research and expected similarities and differences you perceive, prior to the research? Mr. Ajay: Thank you! The international marketing literature points out the importance of comparative marketing studies and yet one finds very few such empirical studies with large samples. My guess is that it is hard to conduct such comparative studies on a large scale as it requires resources and access to the key managers in a foreign country. In short it a tough problem. That is a key motivation and driver for me, that is, to try and tackle a hard problem. Besides I am fortunate that I had access to companies and key managers via the alumni networks at IIM Ahmadabad (my alma mater) and IIT Delhi (also my alma mater) as also my contacts in the Indian industry because I worked in India for a number of years before going
to USA to pursue PhD in Marketing at the Kellogg School, North western University. Markathon: With increased competition in the Indian markets, companies are becoming more sensitive to the strategies of competitors. What according to you is the way ahead in competitive marketing? Mr. Ajay: The key to success in the market is Differentiation. It is easier said than done because in this day and age when over time competition could mimic all your moves and try to commoditize the market. This makes it particularly hard to keep a balance among three things brand equity, market share and profits. As the brand equity erodes and consequently the companys ability to maintain market share at a premium price, the profits decline. One way to stay ahead in the competitive game is by rediscovering the product or offer constantly via innovation. It requires investment in building intellectual capital (R&D) so that new products could be introduced periodically to keep an edge over competition. No doubt it would cause cannibalization but that is better than losing out to competition. There are numerous examples of this phenomenon - Intel, Miller, Kodak, Auqalisa, Eli Lilly, Pfizer and so on. The companies, such as, Intel, which engaged in innovation kept their market leadership while those, such as, Kodak, which did not innovate fast enough lost market leadership and profits. A law of marketing is Nothing is forever. Even Viagra (a little blue pill for Erectile Dysfunction, a quality-oflife drug by Pfizer) was hugely successful until 2010 (sales $1.9 Billion). The New York Times (April 14, 2011) reported that the new longer lasting Cialis (by Lilly, $1.7 Billion in sales in 2010) would take over Viagra in sales in 2011. How did Cialis achieve this (despite entering the market as a number 3 after Viagra, which led it by 4 years; and Levitra, which led by only a few months)? Cialis did it by creative positioning of promoting the drug as a way to relaxed romantic approach to sex (using its unique extended duration 36 hours attribute) as compared to rushed, exciting, winning,
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playboy positioning of Viagra created via Mark Martin, NASCAR race driver in 40s and jokes in the popular media. Markathon: In the Indian context, which method of advertising and sales promotion works best? Mr. Ajay: In advertising as a rule of thumb TV is by far the most effective media in India but also expensive. It works particularly well in India because of widespread penetration of TV in Indian rural and urban markets and also for its appeal particularly to rural markets where the literacy rates tend to be lower. Of course, it varies from state to state within India. The social [Facebook], electronic [Internet], and mobile [SMS] media are also becoming popular but nowhere close to TV yet. I think the print media is the less effective in India as compared to TV and social/electronic media. Markathon: According to you, is marketing communication within the company lacking as of today? How can companies better in house communication? Mr. Ajay: No, I think Indian companies have made a dramatic progress in communicating internally compared to the state of affairs 30 years back when I was working in India. For example, let us take Anand Group of Companies. I worked for Gabriel India Limited, an Anand company, until 1982. We had good in house communication even then. However, now their internal communication is truly exceptional five stars. In 1982 they used to be a group of four or five companies in Automotive ancillary field and today they are a group of 19 companies with more than 40 physical plants all over India ranging from automotive to water purification to hospitality industry and numerous collaborators all over the world. They have an impressive Newsletter about company activities and achievements, which is shared with employees, suppliers, and partners. In addition, face to face periodic meetings at various levels, Electronic Bulletin Boards, E-mails, Sports events for employees and their families, Community
events around festivals and religious holidays, hostels for young male and female employees, bungalows in one location for senior managers, Intranet and Internet are some of the other ways Anand promotes in house communication. These methods may be useful to other companies looking to improve ways to promote internal communications. Markathon: What, according to you, are the key qualities of a marketer? Any Words of advice to our readers? Mr. Ajay: A marketer has a difficult role in a company. She/he needs to interface with internal and external publics relevant to the marketing decisions. As we capture it in Five Cs of marketing: understanding Consumers, Competitors, Collaborators (partners, suppliers etc.), Context (external environment opportunities and threats) and Company (strength and weaknesses internal analysis) is critical to marketers success in marketing decision making. Thus, the qualities, such as, individual attributes - analytical, perceptive, inquisitive, genuine, creative, balanced, passionate, motivated etc., leadership skills interpersonal relations, communication skills - both written and oral, and empathy would make a person a good marketer. While some individuals may be born with some of these qualities, I think most of these qualities could be developed and improved upon with perseverance, patience and practice. Overall, I would say that both nature and nurture have a role to play in making a good marketer.
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markathon | November 2011
An Interview with atul sobti
Founder Friday Gurgaon, Former CEO & MD Ranbaxy Labs Ltd
Atul Sobti was the CEO & Managing Director of Ranbaxy Laboratories Ltd. He was Chief Operating Officer for over 2 years before taking charge as MD & CEO. Prior to Ranbaxy, he was the Executive Director Business Operations at Hero Honda Motors Ltd. (a joint venture with Honda Motors, Japan, for two-wheelers). As Executive Director, he was in charge of sales and marketing, finance, and HR. He has a total of over 34 years corporate experience.Atul is a postgraduate (MBA) from the prestigious Indian Institute of Management (IIM), Ahmedabad. his graduation is in Economics (Honours), from St. Stephens College, Delhi; and schooling from the The Lawrence School, Sanawar (Simla Hills). Atul gave up his position at Ranbaxy to pursue his passion the world of newspapers and launched a weekly Friday Gurgaon in August 2011.
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Vartalaap Markathon: Tell us about one incident/moment from your college days at IIM Ahmedabad that will stay with you forever. How did your education and experiences during college shape your career? Mr. Atul: Well, I guess it would be the D grade I received in Computers. It has not left me since. Funnily, I sold computers for a couple of years. But perhaps I was the only person in a Ranbaxy global force of thousands, who did not use a laptop! Do not still. On college influence, being an IIM (Ahmedabad) graduate does promote your career, and in different ways your work life. However, the habit of listening, reading, and learning well, is perhaps what has best helped me. As also a structured, rational, professional way of approaching and resolving problems or issues especially those directly impacting people. Markathon: What was the motivation and idea behind Friday Gurgaon, the weekly publication especially designed for Gurgaon which you recently launched?
markathon | November 2011 paper. Our website is fridaygurgaon.com. Markathon: How has Friday Gurgaon been different from your past experience at companies like Xerox, HCL, Hero Honda or Ranbaxy where you have worked? Mr. Atul: Too early to say. It is a whole new ball game. More passion and fun, definitely. More do-it-yourself. And much more direct responsibility for the 20 members in the Team, and for the newspaper. No more ties! Markathon: As CEO of Ranbaxy, what was the most challenging task for you? Mr. Atul: 2 separate big challenges: First, to take charge as a professional MD & CEO of a 50 year old family run organization, amidst turbulent and extra-ordinary times. The transition was calm and positive; and well within a year and we were stable and performing well. Second, to effectively resolve the issue with the US FDA. This is still on-going.
Markathon: What lies ahead for the Indian Pharma Mr. Atul: Starting a newspaper (publishing, editing) has industry? How can Indian companies develop a been a passion for long for promoting the habit of competitive advantage in the sector? reading; and for the opportunity Mr. Atul: The Indian to influence Gurgaon today deserves its own paper; it is no Pharma industry makes us fellow society for very proud. Even before IT, longer just a suburb of Delhi. It is a modern city of the common it had globalized, and is a good. It was really global force to reckon with almost 20 lac people - and a happening city, whether now or never. without any government help. Most of the top Indian for residence, commerce, or industry. Local is Gurgaon today Pharma players are robust, deserves its own and have very good becoming more acceptable and relevant paper; it is no opportunities globally, in longer just a suburb different forms. Japan, and of Delhi. It is a Biologics, are frontiers for the modern city of next decade. We are recognized almost 20 lakh people - and a happening city, whether well for our cost, delivery and quality. In India, we for residence, commerce, or industry. Local is becoming anyway do well; and will continue to do so. The more acceptable and relevant. We offer a challenge, outside of India, is when one has to compete comprehensive Gurgaon 360 coverage, in a 32 page all with other local and global big players, in their backyard colour compact weekly paper. It is a family paper, for as Indian pioneers. This has great learning for India, as adults and children. We offer a special Kids section; as we step up on the global ladder. For new molecule R&D, well as a unique Global coverage. It is also a very visual
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Vartalaap it is better to partner global Pharma companies. It is also time the government recognized and supported this global, high investment, high employment, high R&D industry - at least as much as it does IT. Markathon: You have been the Executive Director of Sales and Marketing at Hero Honda. What is your take on the spilt? What do you feel about Hero MotoCorp s new identity? Mr. Atul: Although I am not aware of the details, the break-up provides good opportunities and challenges for both. India still is a top 2 wheeler market. And there is a decent third world global market too. Consistent and effective R&D and Quality is what would challenge Hero; recognizing the value of Sales and Marketing, and effective people and administration management, would challenge Honda. The new identity is good a focus on Hero, but keeping the core emotion (dhadkan) intact. Markathon: Many marketers in the industry look to shift into general management after gaining some experience in the industry. You are one of the few who have made the shift quite naturally and with perfect ease. How can one make the shift? Does it make sense to have a marketer at the head of a company? Mr. Atul: For a marketer, it is critical to have Sales experience also as early as possible. It will pay off in spades later. There is nothing better than interacting with people as employees, customers, dealers, vendors etc., and hearing their voice directly. A marketer, with sales experience, can be a great leader. He/she brings the voice of the customer to the organization, and should understand it the best to then deliver an effective business strategy and action plan. Customers bring the revenue and that starts the journey to profit on a consistent basis. For me, having decided not to go to competition, it always meant changing the industry. This was difficult in the 80s and 90s it should be easier today, with multiple opportunities, and having your own roof at a young age. But I relished change and challenge. And you
markathon | November 2011 slowly realize that, despite every industry believing that it is unique, there is actually more in common basically, delivering value to customers, on a consistent basis in a given environment (SWOT) with the help of a product/service range, and a cross-functional team, of which you are a part. Finally, it is all about people listening, managing, adding value, bring out the best, leading. No specific function can help here. It is about you, your values, your influences and your experience. Markathon: What is your advice for graduates in Bschools looking to make a career in sales and marketing? Mr. Atul: Sales & Marketing starts the business cycle. You must have drive; and an ability to listen well (talk is easy). Be genuinely customer and service oriented. Differentiation and Segmentation are concepts that will stand you in good stead, for ages. Overall - listen, learn, interact to/from/with all kinds of people, across India. Be genuinely open in heart and mind. Your values, your academics, your experience the rational and emotional - It will all come together.
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An Interview with Sudhir Voleti Resident Faculty, Strategic Marketing, Marketing, Indian School of Business, ISB
Sudhir Voleti is an Assistant Professor of Marketing at the Indian School of Business (ISB). His research interest is in Branding, focussing on the conceptual and estimation frameworks of brand equity, brand valuation, brand structures and architecture, branding in services, and branding and the Internet. He is also interested in the area of retailing, particularly store brands and store choice, retailing formats, channels, and the spatial models of intra-store brand competition. Professor Voletis research also explores modelling and methods such as choice models, spatial models, risk and hazard models, multi-category analysis, and the empirical estimation of games. At the ISB, Professor Voleti teaches a course in Marketing Research which underscores real-life problems, solutions and best practices in Marketing. Prior to joining the ISB, he was with the William E Simon Graduate School of Business Administration at the University of Rochester, from where he had obtained a PhD in Management and an MS in Applied Economics. He has a Post Graduate Diploma in Management from the IIM, Calcutta and a Bachelors degree in Engineering from the Birla Institute of Technology, Ranchi. Professor Voleti has over 5 years of industry experience including stints at Accenture, SmithKline Beecham Industries, and Cognizant Technology Solutions. He worked for a while as a research analyst with Special Projects, Consumer Insights Division at Daymon Worldwide Inc. Professor Voleti has a number of commendable achievements to his credit such as being the winner of the Zyman Institute of Brand Sciences (ZIBS) Doctoral Dissertation Competition. He also received a Doctoral Fellowship from the William E Simon Graduate School of Business Administration at the University of Rochester. He was a Fellow of the AMA Doctoral Consortium at the University of Maryland.
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Markathon: You have been interested in estimating brand equity. Could you throw some light on the method you have used in your doctoral dissertation? What framework works best according to you?
Mr.Sudhir: That depends on whether we can get accountants and regulators to agree on one definition to hold true for all product categories in all industries and sectors for all time. Hard to see that happening anytime soon.
Mr.Sudhir: There're various Markathon: How can one account frameworks or approaches to for the varied brand perceptions defining and measuring brand in different geographies, equity. Depending on the I take an empiricist's viewpoint and given that the business world problem's context and the use only secondary data (scanner data is globalized but brand decision-maker's perspective, perceptions are often not? on sales) to measure brand equity. different methods are more appropriate for different The essence of the method is this: Mr.Sudhir: The best way is to situations. So it's hard to use a similar set of measures Sales are a result of a number of generalize on any one 'best' and assess brand equity at factors in action including, primarily, method. different geographies separately. Once that is done, the 4 Ps of the marketing mix (MMIX). I take an empiricist's viewpoint cross-sectional analysis of and use only secondary data If we remove the sales impact of the spatial data can be performed (scanner data on sales) to MMIX and of other control variables to see if there exist spatial measure brand equity. The patterns in the data and (such as environmental factors, essence of the method is predictions for 'dark' or this: - Sales are a result of a seasonality etc.) then what remains unmeasured regions can be number of factors in action must be (a residual form of) brand performed at will. including, primarily, the 4 Ps equity of the marketing mix (MMIX). It should be no surprise that the If we remove the sales impact of the MMIX and of other same brand has different recognition, awareness-recall control variables (such as environmental factors, and price-premium in different places even within a seasonality etc.) then what remains must be (a residual country, what to say of cross-country situations. There's form of) brand equity. no one size fits all, again. Based on this premise, I estimate the residuals left over after all other observed sales effects are accounted for. Further, I impose the constraint that brand equity must be non-negative (either zero or positive only) because otherwise, firms would rapidly withdraw brands having negative equity. With these two conditions in mind, I estimated residual brand equity using an econometric technique called stochastic frontier analysis for my doctoral dissertation. Markathon: Given the variety in the methods and frameworks for measuring brand equity, do you think it is practical to expect brand value to feature in the balance sheet of the company soon? Markathon: What interests you in the field of Retailing? Your comments on the future of the Retail Industry in India. Mr.Sudhir: Any researcher interested in studying B2C issues has no choice but to study retailing. It provides an excellent source of hard data, brand-customer interactions and marketing mix variations that we see around us. Retail in India is hobbled currently by regulatory and institutional issues. Only about 4-6% of the total retail market is organized. The unorganized market is fragmented and hard to generalize across. The prevalence of the MRP [Maximum retail price] which
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becomes the de facto list price of any item prevents observation of price variations and their impact in sales data. The routine fudging of figures to evade taxes by most unorganized channel members further complicates matters because reliable estimates of margins, logistical challenges and trends are hard to come by. All in all, it's a perfect storm out there. But it certainly makes the Indian market too hard a nut to crack for most foreign mass-merchandisers. Markathon: We recently covered private labels in our cover story section. What do you think about the effect of private labels on branded products in a multi brand outlet? Mr.Sudhir: Private labels the world over are having national brands for lunch. In the UK private labels make up two-thirds of the market. Its about a third in the US now by some estimates and post-recession, things are only looking up for private labels (PLs). PLs as a rule don't advertise. Yet they offer comparable and often better margins to retailers than do national brands and are hence pushed aggressively by retailers. National brands (NBs) have their job cut out for them - retreating more to the premium and luxury segments or differentiating themselves radically (in an IP protected manner to discourage imitation) from PLs in the other segments. NBs will be around for quite a while, however. PLs may come more into their own when the millennial (people born in this century), that is anyway alienated from traditional advertising media such the TV come into their own. Markathon: Is it good to have a strong corporate brand and relatively weaker product brands? Or are product brands more important than the corporate or company brand? Mr.Sudhir: No single, simple answer. It depends on the context, product category and industry. Never hurts to have a strong corporate brand name, though. Unless you're launching a flanker brand (cheaper version) and do not want NB name association with it.
Markathon: What has been the key learning from your academic and industrial career? Mr.Sudhir: Change is the only constant. What was trending a decade ago is already obsolete. Constant updating of one's product line as well as one's skill set is the only way out. Markathon: Marketing research is often not the preference of MBA students when looking for a job. Based on your experience, what would be your advice about marketing research as a career? Mr.Sudhir: A lot of Marketing research (MKTR) involves tedious grunt work and is easily outsourced to specialized service providers. Much of the analysis etc is done by specialized software. At the MBA level, managers are more interested in how MKTR can support their decision making in the face of uncertainty in the business environment. So MKTR itself as a career is relatively a rare thing to see in MBA students. I think MKTR should be a skill-set or competency (like statistics, for instance) that MBAs should develop and be able to work with, in their managerial careers.
Change is the only constant.
What was trending

a decade ago is already obsolete. Constant updating of one's product line as well as one's skill set is the only way out
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markathon | December 2011 markathon | January 2012
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 |october 2011 markathon |february 2010
An Interview with Dr. Jagadish Seth

Charles H. Kellstadt Chair of Marketing, GoiZueta B-school of emory university
Dr. Jagdish Sheth is a renowned scholar and world authority in the field of marketing. His insights on global competition, strategic thinking and customer relationship management are considered revolutionary. He is the Charles H. Kellstadt Chair of Marketing in the Goizueta Business School at Emory University. Professor Sheth has published more than 200 books and research papers in different areas of marketing and business strategy.
Markathon: You went to the US for an MBA from the University of Pittsburgh. How did you get interested in consumer psychology? Could you share some key insights in this field with our readers? Mr. Jagadish: In my MBA class, I learned several theories of motivation, including Maslow's theory of need hierarchy. This led me to studying what motivates consumers and why consumers become loyal to a brand. What I discovered is that consumers, over time, reduce choices through learning and feedback from the purchase and usage experience; and eventually become loyal to a given brand. They buy based on habit often learned at a very young age for products such as toothpaste and cereals. Also, they do not consider more than three brands in any given product category. This was contrary to prevailing belief in economics that
consumer choose logically and not psychologically by evaluating difficult choices in a rational manner. Markathon: Emerging Markets to Define Marketing read one of your recent interviews. It has been said that India is a country where value conscious thriftiness coexists with experiential indulgence. What is your take on this in the light of your statement? How can companies better understand consumer India and in turn bring forth a new definition of Marketing? Mr. Jagadish: You are very right that Indian consumers are very value conscious. However, there are three reasons why the same consumers are also engaging in experiential indulgence. First, they are more aware of new experiences such as visiting the seven wonders of the world including Taj Mahal, going on safari and cruises as well as attending meditation camps. Social
vartalaap media and cable channels such as Discovery and Animal Planet have increased public awareness. Also, many of their friends, classmates and family members who have settled abroad and their children are in touch with one another. Second, consumer aspirations are rising to be more contemporary and they experience foreign cuisines such as Italian, Chinese and Thai, as well as Domino's Pizza and McDonald's. This is also true about fashion, cell phones and consumer electronics. Finally, there is new affordability. The wages of service workers and professionals have risen sharply. This enables them to experience small luxuries in life. Therefore, the new definition of marketing is "Luxury for the Masses". Markathon: In the current scenario where loyalty programs are a dime a dozen, how can companies ensure customer loyalty and in turn customer retention? What are the new trends emerging in this area? Mr. Jagadish: Loyalty programs work well only if the product or service experience is exceptional. This is true across all services ranging from airlines to cell phones. It is also true for retails stores, hotels, restaurants and coffee shops. Therefore, the best way to retain customers is consistent and superior customer experience. The new trends in loyalty programs are to use social media and product experience to generate customer cult. The best examples today are iPhone and iPad and stores like Apple stores. Markathon: In your book Chindia Rising, you speak about the shift of the pivot of businesses from the Western world to India/ China. How do you think Indian Managers can train themselves to become global leaders? Where is the Indian Education System lacking in this aspect? Mr. Jagadish: The necessary foundation for Indian managers to become global leaders is to have a global mind set. Most managers, all over the world, are usually ethnocentric. Indian managers are no exception. The best way to increase global mind set is to encourage them to manage businesses abroad especially in non-English speaking countries and cultures. It is not enough just to visit. You must have deep immersion in other cultures and customs. With respect to the education system, there are several options. First, make study abroad mandatory. This is
markathon |february 2010 markathon |october 2011 almost universal in all Executive MBA Programs which include one to two weeks of overseas education and learning. Second, invite foreign students to be part of a cohort. The ideal proportion is one third of the total student population; and they must come from different cultures and countries. However, I believe the most transformative option is to insist on Indian faculty to teach and research in foreign countries. In other words, what we need is a Faculty Abroad program in addition to student abroad programs. Markathon: In your illustrious career as an academician, professor and consultant; what has been your greatest learning? What continues to drive you in the field of marketing? Mr. Jagadish: The greatest learning I have experienced over five decades as an academician, professor and consultant is that the best way to learn is to teach. What continues to drive me after 50 years is passion to learn about new areas. This has ranged from consumer behaviour to multivariate statistics to competitive strategy to relationship marketing. My latest passion is impact of emerging markets on marketing. Markathon: What would be your advice to students in business schools, looking to make a career in marketing? Mr. Jagadish: I have three pieces of advice. First, learning is a lifelong journey. It does not stop with graduation. Therefore, make sure you are learning new knowledge while you are working. This will be more and more critical as the half-life of knowledge declines sharply. Second, the best way to learn is to teach. Therefore, find ways to teach at a nearby college or school. If nothing else, get invited to make presentations in your organization's training centres. Finally, learn to give back to the society. Please remember how fortunate you are to be blessed by your parents, your teachers and your mentors. They made a difference in your life. Think of what you can do to make a difference in the lives of others.
vartalaap
An Interview with HArsha Bhogle
Born: 19th july 1961(age 50) Hyderabad, India Occupation: TV Commentator/ Presenter/ journalist/ motivational speaker/ author Spouse: Anita Children: Chinmay and Satchit Harsha Bhogle recently launched his book The Winning Way co-authored with his wife Mrs. Anita Bhogle. He completed his chemical engineering from Osmania University, Hyderabad and later went on to graduate from IIM Ahmedabad. After graduation, he worked at Rediffusion DY&R for a couple of years before becoming involved with cricket commentary full time. Mr. Bhogle was recently voted the favourite TV cricket commentator by Cricinfo users based on a worldwide poll. Mr. Bhogle has also anchored BBC's travel serial Travel India and ESPN School Quiz and Debate competitions. He is one of the most famous faces on Indian Television today and is widely known in academic as well as corporate circles for his motivational speeches.
vartalaap Markathon: From a Chemical Engineering degree in Osmania University, followed by IIM A and to being a Cricket Commentator. How has your journey been through such diverse roles? Mr. Bhogle: To be honest, they didn't feel so diverse at the time. Each time I was doing what I thought was obvious. As a young kid out of school you did what everyone else did--try to get into an engineering college, then you tried to get into a Management school but the real change came later. In fact it was a few years after I started working that a career in cricket became a possibility. Even then it wasn't particularly remunerative but Management graduates five years into a job didn't earn too much either. So though it seems in retrospect that there was a slot waiting to be filled, it wasn't really that way. Things happened along the way and while I find it very difficult to talk about myself (if it isn't already apparent), I will say this: you need to work very hard even if an opportunity isn't round the corner. Then, when the opportunity does come you will be ready for it. In our book, and our talks, we often ask the question: how much are you willing to do for no reward? And since I loved cricket so much, I was doing a lot even if I wasn't queuing up for a reward. Markathon: How did you find out that cricket commentary was your calling? Were you interested in commentary even when involved as a player for the Osmania University? Mr. Bhogle: To be honest, yes, I was. I remember taking a cassette recorder (one of those big ones!) to one of my games and recording some commentary while our openers were playing. That is what I first submitted to All India Radio. I was a decent player but I don't think I thought enough about my game to go much further. And so, given that I had fair language skills my father thought a combination might be a good idea and Hyderabad was generous enough to give a kid a go. Markathon: You are involved in a lot of speaking assignments and invariably interact with a wide variety of audience. What kind of learning do these assignments provide you with? Mr. Bhogle: I have learnt a lot through our speaking assignments (The Winning Way) and it is fair to say that I have tried to become like the person I recommend people to be while speaking. Even more, I have gained
markathon |february 2011 markathon |september 2010 from working with Anita who is an extraordinary thinker. These assignments have had us thinking about sport from a different perspective, about the challenges within, the requirements of teams, the dynamics within, the qualities of winners and much more. Sport is such a wonderful theatre where you must summon all your skills at the precise moment. There is much to learn from what quality sportsmen do even though it is just as true that they have much to learn from what good managers achieve! Markathon: Tell us a little about your new book "The Winning Way: Learning from Sport Managers" coauthored with your wife Mrs Anita Bhogle. What was the genesis of the book? Mr. Bhogle: We had been thinking about writing a book based on the many, and varied, experiences we have had with Indian corporations and sportspeople. It seemed a natural extension of what we were doing. It is very different compared to a speaking assignment where you can afford a throwaway line depending on how receptive the audience is. With a book, the level of rigour has to be greater and that is where we were able to combine my experience of writing with Anita's planning and rigour (though as it turned out, she wrote a major part of the book too!) Markathon: Do you think Sports, in India, is more of a business than it was, say, a decade ago? If yes, would you consider this a good sign that sports is seen as serious business rather than just a game? Mr. Bhogle: Largely, yes. Still, it is not much bigger than a single product business. Football, I believe, has potential and once we are able to rid ourselves of bureaucratic and political inefficiencies we might have a multi-product business! I believe that eventually we have no choice but to adopt a business approach to the running of sport. It is a thought that has seen much criticism directed towards it for the fear that finance will take over sport. It is not something I agree with. To achieve profitability you will have to look for product quality first. Governments cannot be in business. They can lay down guidelines, they can monitor them to see if there is any injustice taking place, but Governments cannot have the corporate rigour and the emotion that running sport requires. I look forward to the day the government relinquishes control and who knows it might well happen soon.
vartalaap Markathon: India is a cricket obsessed country. Why do you think India lags behind in producing world class sportspersons on a regular basis in other sports? Mr. Bhogle: You cannot produce a great car if you are not in love with producing it. The quality of our noncricket administration is very ordinary (not that cricket is particularly brilliant!) and to be really honest, I am not convinced that they actually want to produce champions or set in place a process that will aid the production of champions. And so our non-cricket sportsmen have to first win the fight against their own administration before they can take on an opponent on the court or in the field of play. It is very disheartening, though we are seeing islands of excellence still coming through. Markathon: Looking back at your career, what would you call your most satisfying moment/assignment through the myriad number of different things you have done? Mr. Bhogle: Unlike with a sportsman who can point towards winning a World Cup or an important test or a Tournament final, it isn't easy for me to pick a moment or an assignment. To be accepted in an area where the general perception, even if erroneous, is that only former sports people can be good, is an honour. I am almost a relic and perhaps the last of my genre going around. When ESPN Star Sports chose to call their talent search "Hunt for Harsha" I was deeply moved. And I am very proud of being part of "The Winning Way". Being accepted by Corporate India, which I believe is very intelligent and competitive, is an honour too. But more than anything else, getting into IIMAhmedabad and being accepted there will have to be the highest moment. Markathon: What would be your advice for the readers of this magazine, and also for graduates aspiring for a career in Sports Management? Mr. Bhogle: I don't know about sports management but what I do know is that if you seek to practice excellence and accept the rewards that come your way, you will be much better off. Far too often, we seek the reward; we seek the result, and ignore what is most likely to take us there in the first place. It can be a deeply rewarding experience to try and become the best player you can
markathon |september 2010 markathon |february 2011 become. That is all i can say for advice can be very overrated!
vartalaap
An Interview with HASIT JOSHIPURA

VP South asia & md, INDIA, glaxo smith kline pharmaceuticals ltd.
Dr. Pradeep Bhardwaj is British Columbia Innovation Council Chair in Sales & Sales Management and Associate Professor in the Marketing Division at the Sauder School of Business, University of British Columbia. He was earlier with UNC, Chapel Hill and UCLA where he received the Most Valued Professor Award. His areas of expertise are Sales Force Management, Designing Channels of Distribution and Customer Lifetime Value. He holds an MBA from the Simon Fraser University and a PhD from the University of Toronto
Markathon: How can a MBA student hone himself to become an effective personal selling agent/ negotiator? Mr. Pradeep: In my experience and interaction over the years, the foremost quality for an effective personal selling agent is to be a very good listener. Most agents are in a hurry to sell their product rather than listening to what the customer wants. The seller should also prepare for different situations and every possible situation that is likely to be encountered. Understanding the business, clients and the trends affecting the industry helps a seller understand the different situations. Another important thing is to genuinely understand the problems of the buyer and the implications of the problems. Looking out for ideas to counter those implications would ensure a good sale. If we consider an example of selling supplies to a hospital, that is facing a problem of say, overstocking. The cause for overstocking might be because the individual divisions in the hospital could be ordering separately, from
separate vendors perhaps. If the seller can demonstrate understanding of the hospitals problems, and the implications of overstocking (example lower budget available for hiring qualified doctors) and then address the needs, it is a win-win situation for both the parties. Markathon: With your industry experience, what do you feel are the key differences in services marketing? Mr. Pradeep: Services are intangible and are about providing a good experience/interaction to the consumer. Services can also be customised to suit the consumers needs. Service quality differs from product quality as service quality is often based on reputation rather than tangible attributes. This reputation often arises from the clients interactions with a single individual. For example, a firm which offers financial advisory services depends on its personal selling agents to create the firms reputation among the clients; the branding is on a personal level than on an organisational level. Services marketing is all about building long term relationships which are profitable to the company. Products are generally returnable but not
vartalaap services. However, the firms need to be aware of the reputation effect. In services the pricing varies a lot unlike in the products where the pricing is quite standard. Markathon: What is your take on umbrella branding? Does it dilute the parent brand or strengthen it? Mr. Pradeep: Umbrella branding is the proverbial double edged sword. It can prove to be quite useful if the company can capitalise and build on economies of scope. For a company like Toyota which caters to different segments with its Corolla, Camry and Sion , umbrella branding facilitates new product introduction and also goes a long way in building its acceptance in the market. Umbrella Branding also imposes a greater burden on the entire product line. Even if one of the products in the family is compromised it can potentially affect the sales of the other products as well. For umbrella branding to be successful, the product line should have similar quality levels and should not have a very wide spectrum to which it caters. When Toyota wanted to enter the higher end car market, it decided to use the Lexus name rather than use the Toyota name. Markathon: While on paper it makes sense to build long term customer relationships, often customers change preferences and are not loyal despite best efforts of marketers. Does focus on long term relationships really make sense in the dynamic and chaotic business environment of today? Mr. Pradeep: Any consumer when changing to a newer product or service looks at minimising the switching costs. For a PC user, switching to Mac entails costs related to newer applications, devices in addition to the cost of a Mac. The consumer always evaluates the alternatives and chooses what he/she feels is the best for his/her needs. It is important to build relations with the customers so that you can cross-sell or up-sell your products. There are also some customers who are inherently variety seeking in nature and do not stick to one single product or brand. Trying to build relations with these sorts of customers doesnt come easy. Companies should try to narrow down on consumers who might be spending less, but are very influential in
markathon |september 2010 markathon |february 2011 the communities of which they are a part. An example of that is a tourism company, here in Vancouver, which identified people who had successful blogs on tourism. They were targeted and in turn provided good publicity for the company via their blogs because they had a good time with the tourism company. Understanding the dynamic nature of the consumers and the evolution of their needs would provide a company with great opportunities. Every consumer moves on eventually and the company should look out for newer ways to fulfil these new needs. Markathon: What have been your learnings from managing multi product sales force? Mr. Pradeep: Managing a multi-product sales force is a challenging task and needs intelligently framed sales policies. The nature of multi product teams needs to be decided depending on whether the products are substitutes or complementary to each other. An organisation should determine how it wants the selling time to be devoted among the various products and communicate the same to the sales agents. If the agents work in 8 hours shifts, there has to be a certain amount of time devoted to each of the product. Designing an appropriate compensation and evaluation plan for a multi-product team is also essential. These packages should be aligned with how the selling time has been divided among the products. If the compensation package is skewed, the agents might end up selling only the products, which give them a good margin and ignore the rest of the products. The sales team also should keep track of each product individually and the number of sales prospects, number of customers in the sales funnel and how the prospects are progressing through the funnel must be managed well. Markathon: How should a beginner approach design of channels of distribution? What are the key considerations for the same? Mr. Pradeep: There is no single approach to designing the channels of distribution. They depend on the kind of product being marketed, the companys objectives and expectations from launching the product and a host of other factors. The channel design is a part of the Go-ToMarket strategy for that particular product.
vartalaap Some of the key considerations for a distribution channel would be customer attraction and retention activities and bulk breaking of the product. The information and logistics needs for a particular product have to be kept in mind when designing the channels. For designing a channel, we also need to identify what kind of a channel portfolio will fit the product. The various channels can be Direct Selling, Franchises, distributors, retailers, telesales and sales over the internet. The different portfolios relevance to the product needs to be identified and then the company can decide on what different channels it should use for its products. Evaluating the efficiency and effectiveness of each of these alternatives objectively will give a clear picture of which sales channel is best suited for a particular product. Markathon: How can customer lifetime value data be used effectively by marketing managers? What are the limitations in using customer lifetime value while taking sales decisions? Mr. Pradeep: CLV data is a very useful tool used for segmenting the consumers into different brackets according to how profitable they are to the company. It also helps in pointing out the high acquisition costs faced for some of the consumers. This said, CLV might often result in looking for short term gains and miss out on long term profitability. For example, a customer usually turns profitable for an online book seller only after an average of 5-6 years and things like these have to be kept in mind when looking at CLV data. There seems to be a disconnect between the objectives and the metrics of CLV data. Most of the times, the focus is on retention of customers since it is assumed that these customers are more profitable. The companies should understand that every retained consumer might not give a higher share of the wallet. The objective should be to look out for profitable customers and not just loyal customers. Even if 80% of the customers are retained, they might not end up spending much and hence the company loses out. Markathon: What should be the aim of a marketing enthusiast while pursing MBA? There are multiple trade-offs to be made in terms of time and effort. What should be the focus during this period of education?
markathon |september 2010 markathon |february 2011 Mr. Pradeep: For any management graduate, one thing of prime importance is to understand how to deal with ambiguity. There needs to be a critical evaluation of a situation or an activity and identify whether it is good or bad. In the classroom, case studies are used and in these case studies the problem is very explicitly stated and the student hardly has to spend time in identifying the key problem/s. In the real world, the problems are always ambiguous and have to be identified. If the sales of a product are going down, you need to dig deep to understand why it is happening and also how it can be tackled. For a marketing enthusiast, apart from a sound marketing knowledge, it is important to have a thorough understanding of the other areas like Supply Chain, Finance etc to have a holistic view of the company. A marketing person should be able to explain decisions to other departments and this can happen only if he/she understands their perspectives as well.
Please send in your comments/feedback to: markathon.iims@gmail.com Visit: www.iims-markathon.in
Team Markathon, IIM Shillong

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MARKATHON

MARKETING MA GA ZINE OF IIM SHILLONG VOLUME3 | ISSUE 8

FROM THE EDITOR

Jitesh Pradeep Patel

THE MARKATHON TEAM

markathon | february 2011

EVP & HEAD MARKETING, HDFC STANDARD LIFE INSURANCE

NIRMALYA KUMAR NADIA CHAUHAN DEVITA SARAF DIPAK C JAIN

MARKETING PROFESSOR, LONDON BUSINESS SCHOOL

JOINT MD & CMO, PARLE AGRO

DEAN EMERITUS, KELLOGG SCHOOL OF MANAGEMENT

DINESH KESHKAR HARISH BIJOOR

PRESIDENT, BOEING INDIA

BRAND STRATEGY SPECIALIST

JAGMOHAN S RAJU G RAMPRASAD SUNIL GUPTA S RAGHAVAN

MARKETING CHAIRPERSON, WHARTON UPENN

CEO TATA TELESERVICES

HEAD OF MARKETING DEPARTMENT, HARVARD BUSNIESS SCHOOL

BABITA BARUAH ANJANA VIVEK

VP & CLIENT SERVICES DIRECTOR, JWT

FOUNDER, VENTURE BEAN CONSULTING

markathon | february 2011

markathon | february 2011

107 110 114 118 121 124 127 129 132

SHASHANK SINHA AJAY MANRAI ATUL SOBTI

PRESIDENT INTERNATIONAL BUSINESS, GCPL

SAUDER SCHOOL OF BUSINESS

Insurance Sector Marketing Insight

Did you know???

Markathon | June 2009

Homecoming of premium wears

Markathon | June 2009

Differentiation is the key for success in a competitive market.

Sridharan Ramprasad, CEO, LERROS India

Markathon | July 2009

An interview with PROFESSOR NIRMALYA KUMAR

UVP best comes from the

new product development.

Innovation is an engine which can drive sustainability

Markathon | Aug-Sep 2009

INTERVIEW WITH NADIA CHAUHAN

Markathon | Aug-Sep 2009 Markathon | Aug-Sep 2009

Markathon | Aug-Sep 2009

was the first beverage in India to be sold in a Tetra Pa

Based on email conversation with Saurav Kumar Bagchi

Markathon | November 2009

INTERVIEW WITH DEVITA SARAF

Markathon | November 2009

True customer engagement means

anticipating needs and working with consumers to solve their problems.

Markathon | December 2009

INTERVIEW WITH DR. DINESH A. KESKAR, president, boeing india

Markathon | December 2009

collaborations government labs.

manufacturing that Boeing has initiated with the Indian well

Markathon | December 2009

Markathon | December 2009

Markathon | February 2010

STORM IN A COFFEE CUP

Markathon | February 2010

Markathon | February 2010

Markathon | February 2010