Tuesday, April 24, 2018
Home Blog Page 3

Interbrand announces the Best Global Brands 2016

0

If you are reading this, we assume that you have some interest in the field of Marketing and Brands. Recently, Interbrand has released Interbrand Best Global Brands List for the year 2016. In case you are hearing it for the first time, we are slightly taken by surprise. Anyways, here is everything you need to know about the latest rankings. There has always been questions on how does building brand equity help a business and why should one keep investing on it. For everyone who has had this question, Interbrand Best Global Brand List answers all of it every year with their list of the Best Global Brands.

The Interbrand Best Global Brands 2016 list has brands valued at $178,000 to $4,000. Please note this is not the net worth of the organisation but ONLY the brand value or what marketers very popularly call as Brand Equity of a brand.

Interbrand-Best-Global-Brands-2016

Facebook emerged as the fastest growing brand among all. As per Interbrand, among this year’s Best Global Brands, they have found some common hallmarks. Some common characteristics that are helping grow brands and businesses. While every brand’s path is unique, those making the most impressive strides tend to defy sector norms and have a clear sense of self. They know when to build versus borrow. Their brand and business are cohesive and built around people. And they have a clear strategy for growth. That’s what makes them Best Global Brands.

Both HP and Hewlett Packard Enterprise made an appearance for the first time in the list. Tesla  too made it to the Interbrand Best Global Brands List for the first time and managed to take the 100th position.

Why Coca Cola dropped Salman Khan from Thums Up?

0

Coca Cola India has recently confirmed that the company has not renewed superstar Salman Khan’s contract for their brand Thums Up. This move comes at a time when Salman Khan has started hosting the new season of his addictive TV show Bigg Boss Season 10. The company claims that the reason of the move is seeking a better brand fit, as the actor is now too old for the brand which caters to a young energetic audience. Consequently, Coca Cola dropped Salman Khan from Thums Up endorsement. However, if we read between the lines, the real reason of exit could be something else.

Brand Ambassadors of Thums Up in India

Salman Khan was roped in as brand ambassador of Thums Up in October 2012. Prior to Salman Khan, actor Akshay Kumar was the face of Thums Up from early 2000s. The brand also roped in few big names like Mahesh Babu from the southern part of the country. Salman Khan has been widely recognised as the face of Thums Up in India a result of his prolonged relationship with the brand, almost more than 4 years. Also, the actor’s popularity is at a all time high with super hits movies in the multi crore club recently. Both of his recent released – Bajarangi Bhaijan & Sultan broke all records at the box office. Thereby, it quite evident that there is no dearth in the star’s popularity. Still Coca Cola dropped Salman Khan from Thums Up. Then, what might have lead to this move by Coca Cola India?

The real reason why Coca Cola dropped Salman Khan from Thums Up endorsement

Coca Cola dropped Salman KhanCoca Cola India claims that the company is looking for a younger face for the brand and has indicated roping in Ranveer Singh. However, this doesn’t fall in place considering the fact that there is hardly any change in Salman Khan’s aura in the last 4 years when he was signed for the brand. Thereby claiming just the age factor doesn’t sound convincing enough.

 

Now lets see few finer details the actors latest engagements.

Salman Khan hosts Bigg Boss 10 presented by Appy Fizz

Salman has hosted the premier episode of Bigg Boss Season 10 recently and kick started the season. Season 10 has a different title sponsor this year. The season is presented by Appy Fizz who takes away the title sponsorship. Salman has a mandate to mention the sponsor names during the show as he did it beautifully in the grand premiere stressing on Appy Fizz multiple times. Appy Fizz competes with the product portfolio of Coca Cola India and the official might not have been happy with their brand ambassador talking about a competing product.

Salman Khan’s controversial comment on Pakistani artists in India

Also, the decision comes just 20 days after the Bollywood superstar courted controversy by supporting Pakistani artists on the debate whether they should be allowed to work in Indian movies following the Uri attack. A lot of hue and cry has gone around the matter of Pakistani artists working in India. Major influential groups across the country have boycotted movies, artists etc- form the neighbouring country. Salman Khan’s statement in support of the Pakistani artists must have played a vital role in this move. Coca Cola India must have been apprehensive on any spill over effect of boycott on over Salman Khan and the product he endorses. The brand Thums Up might go for a toss.

No matter what the company claims but we are sure that its not just the age factor which has led to the star’s exit from the brand.

Effective Communication Strategy in Rural Marketing – Indian Perspective

0

There are different aspects to effective communication strategy in rural marketing which includes not only the communication message but also the language, media used, social & behavioural influences etc- There are many variables across all these aspects in the rural marketing especially India. However, the basic communication process remains the same even in the rural market.

The Communication Process Model in Rural Marketing

The communication process model remains standard for both rural and urban markets. The sender sends the encoded message using a selected media which receiver receives and decodes to understand the message. This is more or less same as in urban markets. However, there are many variables in the model in case of communication strategy in Rural Marketing. e.g. There can be language barrier and the message doesn’t get decoded the right way and gets wasted as ‘noise’. Also due to unavailability of mature media in rural markets the message might not be hitting the right target audience.

Communication Process ModelThe rural environment plays an important role in the way the message is understood by the consumer. Below are prime three reasons because of which the target audience might not understand the desired message:

  1. Selective Attention – The consumer may not even notice the stimuli
  2. Selective Distortion – The message is indirect and twisted making it difficult to understand for the rural audience
  3. Selective Recall – The consumer retains only a fraction of the communication.

All the above three conditions add to the ‘noise’ in the communication process model and thereby play an important role while making the communication strategy in Rural Marketing.

Effective Messaging in Rural Marketing

This is a major challenge in rural marketing and most of the times an organization resorts to specialist agencies to answer this question. The rural consumer should connect and relate to the message. Broadly, below are the heads to be taken care of while crafting a rural message.

  1. Languages – The message should be easily understood by the rural consumer. It should be simple and use appropriate key words for instant connect. Message should reflect culture and religious sentiments of the audience. e.g. Dabur distributed religious calendars in rural markets.
  2. Pictorial Presentation – Considering the literacy levels of rural markets, pictorial representation of message becomes an important part of communication.
  3. Message Form – The message should be native to the place and have utility for the consumer.
  4. Source – Many times the source from where the message is coming from adds to the credibility in the rural market. The message source can be
    1. Likeable
    2. Trustworthy
    3. Expert

Product Interest of Rural Consumer

The product interest in rural marketing is one of the prime aspects to be understood before crafting any rural marketing communication. The product interest can vary with different influencers in the life of a rural consumer/villager.

The below chart explains how influencers effect product interest and decision of a rural consumer.

influencers-in-rural-product-interest

Social and Behavioural Influencers in Rural Marketing

Media used in Rural Marketing Communication

The media used in rural marketing could be:

  1. Mass Media or Conventional Media – TV, Radio, Print, Cinema, Video on Wheels etc-

Traditional or Non Conventional Media – Puppet Show, Folk theatre, mela, paintings, posters etc-Rural Marketing Communication Media ChannelsNon conventional mediums are considered useful creating effective communication strategy in rural markets. Below is a general flow of message across traditional mediums in the rural market.

Usage of Non Conventional Media in Rural Marketing

 

 

What is CPRP in Advertising and Media Planning ?

2

Media Planning is a wide area of study largely of which is untouched at any B-School or any training program. A whole world of media terminologies exist which are not easy to comprehend. Also, it is important to understand the logic behind these advertising terms to take cognitive actions. CPRP in Advertising and Media planning is one such terms which needs to be succinctly understood. Misunderstanding the term may lead to adverse effects to the marketing campaign in general and the media plan to be specific.

CPRP – Cost Per Rating Point

While planning media, it is important to assess the cost being incurred to reach one individual in the TG (Target Group). Different marketers have varied school of thoughts while planning media. A majority of them consider CPRP in Advertising – Cost Per Rating Point. CPRP is an indicative figure which gives the media planner an idea of the cost he/she is incurring to pass on the message to one single individual falling the TG. However, as it is practically impossible to assess the exact number of individual viewers, media planners resort to rating points for an average but accurate measure.

How to calculate CPRP in Advertising?

Before exploring the methodology behind calculation of CPRP, it is important to understand how does one calculate rating points. Below is an illustration;

TVR (Television Rating Points), more popularly called as TRP is a time average percentage of the audience universe across a defined time period and is calculated as below illustration:

Viewer Start Stop Total Time Viewed
A 12:30 12:40 10 mins
B 12:46 12:50 4 mins
C 12:30 12:35 5 mins
D 12:35 1:00 25 mins
E,F,G,H,I, J Did Not Watch

Total duration of program = 30 mins; Total Respondents = 10

TRP = [(10/30 + 4/30 + 5/30 + 25/30)/10] X 100 = 15 TVR

The sum of all TRPs is called GRP i.e. Gross Rating Point. GRP is a relative number and has no meaning standalone.

CPRP is the amount spent by the media buyer to achieve one rating point. i.e. Total Expenditure/GRP. As CPRP is derived from GRP, even CPRP in Advertising, is a relative number and doesn’t have a significance standalone.

e.g. GRP (i.e. Sum of all TRPs/TVRs) = 30 TVR; Total amount spend on the TV Campaign = Rs 5,00,000. Then CPRP = 5,00,000/30 = 16,666.66

CPRP Vs CPT

Though CPRP is widely used while planning media but there have been school of thoughts supporting the globally more popular CPT measure of media effectiveness. CPT i.e. cost per thousand effectively measures the amount spent to reach 1000 viewers. Thereby CPT takes into account the absolute number of people reached and therefore clearly shows the change in the number of individuals watching television or a program. CPRP, on the other hand, is a relative measure which has the backing of advertisers and media agencies, where the money is spent to reach a certain proportion of the audience. As CPRP, the buying metric for TV, takes into account the percentage of the base which has been exposed to the communication, it is less impacted by the ever changing universe.

However will CPT be the future of TV media buying is yet to be seen. Read More on Will CPT be the way forward for TV media buying?

Bigg Boss TRP reveals that season 10 is really crucial

0

Bigg Boss Season 10 starts airing tonight on Colors. The show has been an addiction for the audience over the years. With celebrity hosts and uninterrupted weeklong entertainment, Bigg Boss TRP is always on the radar of marketers while media planning.

Bigg Boss TRP & Brand Integrations

The ad rates jump multifold on Colors when media is bought on ROS (Run on Schedule) during Bigg Boss timings. However, not all seasons of Bigg Boss have made up there in terms of TRPs. In fact, season 9 of Bigg Boss had the lowest viewership and advertisers might feel cheated paying a premium for ad spots during the show. Not only normal TVC spots, but also brand integrations in the Bigg Boss house are looked upon. CP Plus, Maruti Suzuki, Oppo etc- spent huge on the show. In Season 10, Appy Fizz and Oppo again have bet their monies on the show.

Bigg Boss TRP – All Seasons

Lets have a look on how the previous seasons have performed on the charts:

Season Host Peak TRP Key Members
Season 1 Arshad Warsi 2.72 Rakhi Sawant
Season 2 Shilpa Shetty 3.02 Rahul Mahajan
Season 3 Amitabh Bacchan 3.06 KRK
Season 4 Salman Khan 6.70 Dolly Bindra
Season 5 Salman Khan & Sanjay Dutt 4.30 Sunny Leone
Season 6 Salman Khan 4.40 Imam Siddique
Season 7 Salman Khan 4.32 Ajaz Khan
Season 8 Salman Khan & Farah Khan 3.28 Gautam Gulati
Season 9 Salman Khan 2.90 Prince Narula

 

Season 4 of Bigg Boss has been the top grosser with a peak TRP of 6.7. This season was the first time when Salman Khan was hosting a show on Indian television. Also, with the plots created in the house coupled with a yelling Dolly Bindra grabbed eyeballs. The advertisers certainly raked in the moolah in this season. However, post this season the show’s TRP has almost been on a decline. Another reason for this is the movement of the show to a 10:30 time slot from Season 5. The last season i.e. season 9 of Bigg Boss had a dismal rating of 2.90 which was almost as good as the first season. The second best season after season 4 is season 6 with TRP of 4.40. Though this season comes to the second spot but the difference in the TRP numbers can not be ignored which is quite significant.

Bigg Boss TRP with change in timings

During the seasons the time of the show has changed. The highest Bigg Boss TRP in season 4 came at a time when the show was being telecasted on prime time. Post this season the show has moved to a 10:30 PM slot on weekdays. For all seasons where the show had been in the late night slot, it will be unfair to benchmark season 4 TRPs. However considering the lowest ever TRP in the last 5 seasons being in season 9 is a matter of concern. For media buyers, Big Boss Season 10 could very well be a risk which can either pay off handsomely or put them in trouble. Another point for concern with media buyers would be the simple fact that whether it is wise to consider the show as prime time with respect to the time slot.

Postmen to Solve the Rural Distribution Challenge in India

0

Rural markets have their own challenges. In a country like India, where the fortune is at the bottom of pyramid, its importance increases even more. Rural distribution will play a vital role in the growth of FMCG in India which is set to double from the current levels and hit USD 104 bn by 2020. Making standard goods available to the rural population is itself a challenge. Furthermore when it comes to providing subsidized goods to rural markets, the challenge is even bigger considering a high possibility of the subsidy not reaching the right set of people. We learnt about the rural distribution challenge in India of goods and services in an earlier post Distribution Strategies for Rural Market – Indian Perspective where we discovered how organization as well as government use various rural establishments such as Cooperative Societies, Public Distribution System, Mandi etc to make products and services available to the rural population.

Digital India gradually bridging the gap in Rural Distribution

Organizations have already resorted to computer aided reporting of product stocks, sales etc- to make sure that they have the right information. This data is also helping companies to fight challenges in rural distribution as well as in decision making while establishing a rural distribution network. Indian government, with the Digital India initiatives, is also aiming to fight the rural distribution challenge by adopting real time reporting to avoid malpractice. However, with low penetration of data networks in rural areas these efforts are yet to reap full fledged results.

Government to use Postmen to fight Rural Distribution Challenge

postmen-fight-rural-distribution-challenge-indiaRecently, to combat rural distribution challenge during the festive season, the Government has decided to use postal network for distribution of subsidised pulses and to release more Chana from buffer stock to ensure availability of these commodities at reasonable prices. The decisions were taken in the Inter Ministerial Committee on prices of essential commodities headed by Union Consumer Affairs Secretary in New Delhi. The committee reviewed availability and prices of essential commodities, especially pulses and suggested that in the absence of Government outlets in the states, postal networks should be used for the distribution.

The committee also reviewed the procurement arrangements of Kharif pulses by Government agencies. It was informed that so far 500 procurement centres have been opened and farmers are being paid through checks or bank transfers. The Government has set up procurement target of 50,000 MT for current Kharif pulses.

The government operated Indian Postal Services is anyways having a tough time with the advent of digital communication channels. Recently, the Indian Post stopped its Telegram Service which was barely being used in the 21st century. With decreasing responsibilities of the Indian Post employees, this might be a good idea to capitalize on their unmatched reach and simultaneously make subsidies accessible to the common man. We hope that with increasing penetration of data connectivity, especially with Reliance Jio network covering majority of India and device costs dropping everyday it is very much likely that the next festive season the government might not need to seek support of the India Post to fight rural distribution challenge.

Flipkart Big Billion Day Sales Figures 2016

0

Like every year it was once again online sales war during the festive season amongst the e commerce giants – Amazon, Flipkart & Snapdeal. Flipkart Big Billion Day Sales Figures 2016 was much awaited. The company has had troubled season of the Big Billion Day in the past with technicals unable to keep in pace with the marketing and sales surge during the period.

Flipkart Statement on Big Billion Day Sales Figures 2016:

Answering everyone’s queries on the sales numbers, Flipkart’s CEO Binny Bansal revealed the Day 1 sales figures to media and claimed an undisputed leadership. The sales numbers for Flipkart owned Myntra and Jabong were clubbed in the statement. “We have had a flawless Big Billion Days this year. Starting from marketing, merchandising to supply chain and technology, all teams came together to deliver and the results have been stunning. Some of the key landmarks of the sale was when we made a history in the Indian e-Commerce by crossing 1400 crore in a day. Big Billion Days is nothing without the billion people of the country. We dream of making all wishes affordable, and these are only initial steps in that direction.” Said  Binny Bansal – CEO, Flipkart.

Flipkart Big Billion Day Sales Figures 2016 (Day 1 Sale only)

  1. Total Units – Flipkart + Myntra + Jabong   – 15.5 million
  2. 99% of all units were above Rs. 200 selling price/ 95% above Rs. 300 selling price
  3. The shopping cart of one lakh customers exceeded Rs. 50,000 (Total units sold includes only physical goods and does not include virtual membership and low cost items)
  4. Number of smart phones sold – 2.5 million.  More smartphones sold in five days than entire sales of mobile phones in India in a week
  5. LED televisions sold on Flipkart in five days exceeded the entire sales of  LED TVs by organised retail in 45 days
  6. Three out of every four apparel sold online were sold on their platforms
  7. The company has crossed their internal targets by 40%
  8. Sales on October 3 on Flipkart crosses Rs. 1400 crores – highest in history. Sales on Flipkart alone  on October 3rd crosses single day sales of organised retail in India

If we believe Flipkart’s claim, this is simply astonishing fact that the company sold goods worth more than a single day sale of organised retail in India on just 3rd Oct 2016.

Way to go Indian e-Commerce.

What is Marketing Myopia? Concept and Examples

4

Marketing Myopia – Introduction

Marketing Myopia refers to the phenomenon of not being able to see a long term and more sustainable goal for an organisation. For decades, the term Myopia is being used in human sciences referring to Nearsightedness – the ability to see near objects clearly but inability to see the far off objects. Marketing Myopia, as a term, makes it very clear the inability of the company to be able to identify the actual business in which they are.

 

Marketing Myopia – The Concept with Examples

Companies needs to give a more consumer centric goal to their business and think beyond just selling their products. Below are some examples which put forward the phenomenon of Marketing Myopia and how can companies look beyond it.

Marketing Myopia in the Transportation Business

A lot of companies operating globally in the railroads business have faced stagnation of growth in their line of business. What they have failed to realise is that they are not merely in the railways or railroads business. They are actually in the business of transportation. and at a time where there are more and more newer ways to commute their railroads business will definitely take a hit. So basically while crafting their diversification plans the companies should consider a holistic picture of transportation as a business and not just railways or railroads. This stands to be a classic example of Marketing Myopia.

Marketing Myopia in Entertainment Business

Hollywood had a narrow escape few years ago when the leading production houses faced a crunch. Almost all of them underwent major restructuring. Why all of this happened? Simply because Hollywood assume that they are in the business of making films and di not consider TV as a threat. What they didn’t realise was the simple fact that they are not in the business of just movies but entertainment as a whole and tomorrow if the consumer has different sources of entertainment their product i.e. movies, will definitely take a hit. However, Hollywood managed to escape this Marketing Myopia, as they sooner of later realised TV as a potential growth opportunity for them as well rather considering it altogether a different animal. It was then when Fox, Buena Vista etc- entered into TV production as well and had survived.

Marketing Myopia in Apparels Business

Few years ago, Dry cleaning was one of the most sought after line of business. Worldwide increasing number of wool products led to this ‘then’ very lucrative business. However, what the dry cleaning guys didn’t realise was the fact that they were not merely in the dry cleaning business but were in the business of apparels. As new fabrics arrived, the market share of wool products started going down. Synthetic fibres started gaining more popularity and thereby dry cleaning business suffered.

Marketing Myopia in Consumer Durables

Though not as evident as the cases described earlier in this article, there is a high probability of consumer durables running on electricity to face obsolescence. The electric goods came into picture at the cost of traditional fuel driven appliances e.g. wax candles, kerosene lights etc- Consumer found ease with electric utilities which can directly be plugged and switched on. However, if we see from a different lens, it is very much possible that the next wave of products do away with any electricity plugged in and might have there own sustainable fuel cells which keep them running. e.g. Imagine a smartphone which never needs to be charged. The best way to handle such obsolesce would be to plan the obsolesce and introduce newer technologies and hand hold the market share from one technology to another.

Marketing Myopia in Retail Stores

Once considered to be the bread and butter of many households, now retails stores face a threat from a supermarkets, online shopping etc. What these households running Mom & Pop shops do not realise is that they are not merely in the business of selling their products to nearby areas, they are in the business of quick & easy access of groceries. Supermarkets came into the picture because of convenience. Instead of wandering around different stores for goods, people started to flock to super markets to get everything under one roof. Similarly, the consumer doesn’t mind buying the product from a online shop as long as it delivers as per their time and have the product range that they are looking for.

Marketing Myopia – Conclusion

Overseeing a broader holistic picture in business makes it more sustainable. Organisations should not only take care of their own product into account while gauging competition but also factor in other threats which might pop up because of being in that business. We should not fall a prey of myths like – population will grow our sales will grow. While diversifying, companies should look at all possibilities which serve the purpose of the business to their consumer rather than just looking at honing skills in one product.

Tanishq Diwali campaign appeals gifting gold this season

0

With the festive season knocking the door, Tanishq has launched a new campaign luring Indian consumers to give the gift of gold this festive season to their loved ones. The Tanishq Diwali campaign jingle focusses on couples primarily and at all instances the husband giving his wife the gift of gold. This song with hook Sajna-Sajni is catchy. The ad also showcases characters across ages. This includes a young girl delighted with her necklace with her mother and a teenager dressed in ethnics with her friends.

Earlier, Tanishq has also roped in Deepika Padukone as their brand ambassador. However, surprisingly they have not used her in this campaign. The current TVC touches various segments of Indian society – Punjabi, South India etc- and across different age segments thereby catering to the common man of India

The sentiments high with the festive season, Diwali anyways contributes the biggest chunk of sales through the year. However, with increasing competition of deep pocketed players, its time that Tanishq has once again decided  go all guns – be it product range, product pricing or the associated campaign. Relatively newer players like Kalyan Jewellers, Khazana Jewellery have been aggressive on advertising throughout the year.

Deepika Tewari, GM – marketing, jewellery division, Titan Company, said, “For Tanishq, Diwali is that time of year that everyone looks forward to. This festival is marked by beautiful traditions and the purchase of gold jewellery is an integral part of those traditions. Families and friends come together to partake in the festivities, and special celebratory moments are innumerable. In our latest film, we have captured these moments and the joy of going all out to celebrate.”   Hari Krishnan, president, Lowe Lintas, said, “Everything under the sun is bought during Diwali and there’s a huge fight for the share of wallet, by products across different categories. We wanted to bring back the relevance of gold over everything else in a Diwali celebration and highlight the sheer joy and emotions of gifting.”

 

The 7 Branding Approaches & Their School of Thoughts

3

Branding is the in thing across industries. Organizations are spending millions planning and implementing brand activities. Every now and then new research is being published and various frameworks are being  developed in the attempt to establish different approaches to brand management. Many different branding approaches, concepts, theoretical frameworks and ideas have popped up in the subject and consequently resulted in a wide spectrum of different perspectives on how a brand should be managed. It is almost impossible to see a brand via a single lens. However, experts have classified various branding approaches in seven school of thoughts which more or less covers the entire branding landscape.

An extensive analysis of numerous papers published on brand management led to seven approaches mentioned below. This included 300+ articles from Journal of Marketing, Journal of Marketing Research, Journal of Consumer Research, Harvard Business Review and European Journal of Marketing. Thereby, we can be safe to claim that no matter which framework or model one follows it must have originated via one of the seven approaches mentioned below.

The Seven Branding Approaches are:

  • The economic approach: the brand as part of the traditional marketing mix.
  • The identity approach: the brand as linked to corporate identity.
  • The consumer-based approach: the brand as linked to consumer associations.
  • The personality approach: the brand as a human-like character.
  • The relational approach: the brand as a viable relationship partner.
  • The community approach: the brand as the pivotal point of social interaction.
  • The cultural approach: the brand as part of the broader cultural fabric.

There are multiple theories and model to be followed in the area of brand management with their own school of thought and have been proven to work. Be it Aaker’s brand identity model, Kapferer’s brand prism or Keller’s customer- based brand equity pyramid, all of them will enhance the brand equity of the product or service but may have evolved from different school of thoughts. Though everyone talks about the different models, rarely we find text on the school of thought rather then the actual model in practice. You will find the Brand Asset Valuator Model in many books but you might never come to know the author’s perspective.

The branding approaches are basically seven different school of thoughts towards brand management. Start imagining yourself, have you ever perceived a brand as a human being or something with whom the consumer is in a relationship? The seven approaches armor us with seven different lenses though which you see a brand. And once we start seeing the brand via different perspectives, we can always juggle between different school of thoughts as per conditions and at times create our own approach to best fit the scenario.

We should definitely know the basic thought behind all the approaches but at the same time we should also learn the fact what actually do we mean by an ‘approach’. How will one handle if asked to formulate own approach towards a brand problem?

Read more about how can you formulate your own approach or get to know an existing approach better in our upcoming articles.