Paisa bolta hain ?

Even at the time of high inflation, where everything is expensive, Telecom operators are fighting over the value of 1 paisa. Marketers of different companies are trying their best to innovate the power of paisa in various ways.

If there is one sector that is definitely over-crowded in India it is the Telecom space. From Tata to Aircel, from Vodafone to Reliance all are locking horns against each other for a share of the Indian Subscriber. And in doing so they are taking the competition to a whole new level.

A level of competition that can be fatal to them and the entire industry.

It all started with Tata Docomo.
The domino effect made IDEA, RCom, Vodafone, MTNL and Airtel offer per second billing.
Now if that wasn’t enough MTS which is a new player cut the 1 paisa per second to half a paisa per second! Imagine what if i use just 1 second a month? How do i get half a paisa? Is there a half a paisa coin?

Latest generosity is shown by Loop Mobile. It has gone a step ahead and launched 1 paisa per 6 seconds i.e. just 10 paisa a minute charges!

I’m still wondering who would talk about better services, better coverage, free gprs etc rather than just talking about call rates. It seems like telecom services are just a commodity and no matter how much branding they do they would still fight on price.

Well where is this headed? Free calling?

I understand it is difficult to completely resist pricing pressures in a price-sensitive and crowded market such as India. However, marketers should focus on careful market segmentation and value-based differentiation.

Mistri diagnosis

As I have mentioned in one of my post (survival of the fittest) Companies like Vodafone and Airtel which increased their media spending during recession times will reap the benefits during upturn. They have capitalised that time to build brand equity.

In the coming year I recon there will be a paradigm shift with the introduction of mobile number portability ( MNP enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile network operator to another.)

Calling rates will become cheaper and will be same across all the networks. With the introduction of MNP subscribers will easily be able to switch their loyalty without changing their mobile number.

It will become very difficult for small players to retain their subscribers as they will not be able to give same services as big players and will not be able to cope with low profitability caused due to price war.

The small companies will perish or will be acquired by big telecom companies. What went wrong for these small companies is the fact that everybody knows their strength i.e. using predatory pricing to attract subscribers and unfortunately it will go against them.

If you know your strength it never becomes a weakness. If the market knows your strength then it becomes a weakness.

Author: Sanjay Mahar

Are you innovative???

Recently during an interview I was asked the same question. My answer was "yes" and I somehow tried to substantiate...

As soon as the interview got over I was wondering what I could have said more to convince the interviewer that I am INNOVATIVE

After thinking a lot for two days I realised that there is no such thing as "being innovative."

Innovation is a result - not a process.

An innovation is an idea put into action that creates change. You can try to create ground-breaking ideas intended for this purpose, but until launched and in use, you won't know if it is an innovation.

On the list of objectives of most marketers is a statement about being innovative or driving innovation.
Telling marketers to "innovate" is the problem. It frames the wrong issue. The mission of the team should not be to "innovate," it should be to:

"Create remarkable ideas that have the potential to induce improvement and change."

Author: Sanjay

Confessions of an alcoholic

What does it take for a brand to achieve cult status?
Has any Indian brand reached the levels of customer empathy as, say, Harley-Davidson, Starbucks and Apple?

Can any Indian brand do that? Can India create its own cult brand in the foreseeable future?

Till now… NO

Why has India not been able to produce cult brands the way Europe or the US has? Don’t we have several brands that have a small but loyal following?

The reason why India has not been able to create its own cult brand is because we are a very diverse nation and we tend to disagree more than we agree. Indians are very individualistic and prefer our own approach to everything. Cult following typically happens when a country has a large proportion of people following a common lifestyle or group behavior.

Another major reason what I think is that Indians are encouraged since childhood to "fit in" rather than "stand out", and cult brands draw their consumers with propositions that go against the mainstream.

Any Indian brand, from a match box to a plane, can become iconic and achieve cult status. However, marketers need to build brands that help give people an identity. People like to be different. At the same time, they would like to be part of a group that acts different.

There is one brand which I think has the potential to reach cult status.

This is my homage to a brand called Old Monk.

To tell you something more about OM, especially important to non-drinkers. OM is famous brand in dark rum. It’s an internationally appreciated brand produced in India. OM is available everywhere in India- from roadside dhaba to any five star Hotel. Generally in any bar menu OM is the most inexpensive drink. OM is an inexpensive drink. But beware! Never call it a cheap drink!!

I think OM is one brand which knows no cast, creed and is for all strata of the society. It is probably India’s favorite rum, or rather alcoholic brand. From its uniquely shaped bottle, to its taste, Old Monk’s popularity cuts across all segments and it remains one of the largest-selling brand in the country.

It’s affordable, it goes down well with almost everything, it is there on all party menus, and, of course, it tastes great. It has probably been around for as long as, well, an Old Monk!

“Old monk is the scotch of Rum”

In my view there are two kinds of drinkers- those who drink OM rum and those who don't. OM drinkers are generally hardcore devotees of the drink and they are typically very addicted.
Old monk drinkers are not brand loyalists. They are brand fanatics.
The emotional attachment with the brand is enormous

Mistri diagnosis

Conventional marketers need to watch out—even as companies are spending zillions introducing new brands and defending established ones, the fact is, customers are becoming less loyal. The only brands that are in with a chance are those that customers don’t just buy, but live by.

Normal brands try to build a “relationship” with customers. Great brands try to build a ‘romance’

At last very important note to all the readers..."Consumption of Alcohol is injurious to Health"

Cheers

Author: Sanjay
Common man pic by: Ching

Happy birthday Jacko

Today is Michael Jackson's Birth day

Happy birthday Jacko
A tribute to Michael Jackson

I love him. The whole world fell in love with Michael Jackson, In the early seventies, Michael along with his brothers, the Jackson 5, were the hottest success.

Michael Jackson took celebrity marketing to a new level
I don't usually write about pop culture, or about tragedies in the news. But the Michael Jackson brand has just exploded. The PR, the news, the fans, the talk shows, He is everywhere.

His fans are crazy about him. They still think he is not dead. I don’t know about that, but as a brand …brand Michael is getting bigger and bigger.

But…
Michael Jackson is dead. As far as I am concerned, the Michael Jackson I loved died a long time ago. What went on 25th June was just nothing.

What was Michael's problem, you might wonder. He had talent, he had money, he had fame, he had fans. he had 'everything, most of us can only dream about.

Deep down inside, Michael hated himself.

That's why he underwent a million surgeries.
That's why he was taking painkillers, on which it is believed he died.

What he never realised was …

"Learning to love yourself... is the greatest love of all"

P.S.- he was the greatest entertainer that ever lived and he was incomparable with any other artist. He was a phenomenon in his own right. He was a true humanitarian who contributed world

Author : Sanjay

Perception is not reality

Was on a very long break because I was busy preparing for my term end exams.

It’s been really long So I thought I must write

Even if it is, about what I have been doing all these days and about what I think of a show on star plus “sach ka saamna” Indian version of 'Moment of Truth'

I liked the show not because of the content and not because it’s about telling the truth and wining a crore rupees.
I liked the show because of sheer marketing brilliance, perfect positioning and disguised communication.

As a viewer it sounds so simple answer 21 questions truthfully and win 1 crore rupees.
But the fact is star plus is not running a charity show. There is a big trick behind it.

Few of the questions asked in the show are as follows
1. If the bank never discovers you have stolen a crore of rupees, would you steal the money?
2. "If your husband never came to know about it.. Would you consider sleeping with another man."

Here is the trick if you pay little attention ,both these questions are hypothetical and its about fantasy and every one has fantasy.

The contestant can say Yes, that means she would consider sleeping with another man if her husband never finds out". Husband need not get offended because another man is not necessarily Mr Sharma next door but perhaps Shahrukh Khan Or Brad Pitt.
Cosmopolitan magazine says fantasies are healthy

But Mr husband does not read such magazines. He is a hot blooded Indian male and will definitely feel insulted.
Knowing the consequences of saying "yes" Smita says "no".( refer to video 52nd sec)
When the polygraph beeps 'false' she looks surprised and says,"Yeh nahin ho sakta!"
Husband looks suitably crushed, embarrassed.

Smita leaves the show with zero rupees and will spend rest of her life explaining that polygraph tests are not always true. They are not admissible in court as evidence.

The truth is she was tricked. She thought she had 'nothing to hide' but discovered we are constantly hiding things. Even from ourselves.


The makers of this show have every intention of fooling you she had no choice, but Smita did and I wish she had quit when she could... She was too brave for her own good.

but you know what, friends and relatives will laugh behind Smita's . Because the 'morals' of society are supposed to be guarded by the women.
A simple ques to all the viewers who think smitha was wrong. Wernt you all thinking at that time
"How would I answer that question?"

Aur ek chhota sach yeh bhi hai I can't blame my examination for writing less on this blog. The truth is my exams lasted just 4 days.
I've just been lazy, and I think I'm getting hooked on to the idiot box. Movies ,cricket ( specially ashes) and all types of reality shows .They provide 'Instant gratification.

I need to remind myself that I am first and foremost a blogger.
So I am back … Happy reading.

Author: Sanjay

Sponsors of tomorrow are fake

Intel the computer chip maker, has launched an integrated branding campaign using the theme, “Sponsors of Tomorrow”.


From this TVC the company wants to reposition itself, as the company is transforming from microprocessor company to platforms and solutions company

While watching t20 world cup you must have come across the TVC of Intel which features Ajay Bhatt, the co-inventor of USB, who is a rock star at Intel because of his achievements. In a humorous way, the TVC shows women glancing over him when he walks in to get coffee and men are eagerly waiting to get his autograph. The TVC ends with the line: ‘Our rock stars aren’t like your rock stars’.

Brilliant commercial I liked it Except for one thing the Ajay Bhatt in the commercial is not the actual Ajay Bhatt who invented USB that’s an commercial actor ,and if you compare the engineer rock star to the real Ajay Bhatt the actor looks — hmm, a stereotype of an Indian Engineer.”

If Intel says that our rock stars aren’t like your rock stars’, then why do they have to use an actor for the TVC, in a way they are contradicting themselves,

Mistri Diagnosis

They should have used Ajay Bhatt to act for the commercial that would have made more sense and their communication would have been in-sync with the commercial as this would have raised the credibility of the communication. Until the viewers know that the person named as Ajay Bhatt in the commercial is not the original person, they regard the ad to be effective but once they come to know that he is an actor and not the original Ajay Bhatt, their perception about the brand changes and an question arises as to why didn’t Intel use the real Ajay Bhatt in the commercial.

Author: Sanjay

Mummy mummy bhook lagi!!!

A couple of years ago my class teacher entered our classroom with a stranger who had a big cardboard carton. We were asked one by one to pick a shiny yellow colour packet bearing-Maggi Noodles.

In 1982, when Nestle (then known as Food Specialities Ltd.) considered launching Maggi instant noodles. The company had several options of choosing from several alternative positioning. The product could have been launched as an alternative for ‘Chinese dishes’ at home or as a ‘mini meal’.

Consumer research showed the company would fetch profits if it were positioned as a tasty, instant snack, made at home and initially aimed at children. There were no direct competitors to Maggi then. For starters this was the brand that pioneered the entire category of packaged food in India. Not easy in a country where freshly cooked food was the norm. The sampling exercise did great wonders for the brand as the four letter word-FREE is very powerful.

Maggi was launched in Delhi in 1983....Even before I was born.....Maggi became a quintessential Indian food.

Maggi has been a part of numerous memorable experiences of my life. From being a midnight snack in the hostel while mugging for exams, to eating vegetable cheese chilli Maggi in the college canteen for dinner. Maggi easy to cook was the first cooking experience for numerous youngsters. It is also the fifth most trusted brand in Indian Food category and the most valued FMCG brand.

Nestlé’s Maggi has stuck to the jingle that marked its entry in the country 25 years ago with instant noodles. The jingle has indeed helped in creating a formidable brand. Maggi’s market share is well above 90 per cent. Maggi is the biggest brand in the Nestlé portfolio in the country. So, why kill the jingle.

This year being the 25th anniversary of maggi, the brand has decided not to litter the sky with hoardings on the occasion. The ads will play Nostalgia. Thus, customers will be invited to share their “Maggi moments” with the company. If the company likes the way you prepare Maggi, you could find your photo on Maggi packs. A new website called www.meandmerimaggi.com.

Maggi among other FMCG products has one of the best and unchanged Positioning. This brand shows how simple strategic positioning ideas almost always come in small words. Maggi found a vacant, strong position and ‘sat on it’ as the ‘Fast to cook’, Good to eat’ any time sanck.

Guest author: Megha

Survival of the fittest

You all must be aware of the theory of survival of the fittest.Which means only the fittest organisms will prevail. So too with brands. During this economic slowdown the brands which can innovate and can give higher value to customers will only survive.

Consumers have become smarter and tougher. Consumers are now asking harder questions to themselves. “Do we really need it?” “If we need it, do we need it right now, or can we wait to purchase it?” At last: “Do we even want it?
So what should marketers do???

Is lowering the price only way out to add value??

I say no…

In a down economy, marketers think a lot about price. They think that since times are tough, people care about price and nothing but price.
Of course, people actually care more about value. They care about value more than they used to because they can’t afford to overpay, they don’t want to make a mistake with their money.

An easy mathematical equation

Value = benefit/price.
That means that one way to make value go up is to lower price, right?
The thing is, there’s another way to make the value go up. Increase what you give. Increase quality and quantity. Increase the benefit and the value will go up.

Vodafone understands this concept very well and that is why they are not going for any price cuts rather they are emphasising more on creating value for the customers with the help of value added services they are increasing the benefit.(Vodafone new tvc characters zoozoos are to promote value added services)

Vodafone is spending profoundly to promote value added services .Vodafone is not decreasing the price instead increasing the benefit which will result in greater value.

Mistri diagnosis

When the going gets tough, customers get tough too. They start to pay closer attention. They start to demand more.
Smart marketers should see this as an opportunity and act on it by strengthening their brands to take advantage of the contracting economy. Its time when weak brands get eliminated and the strong brands gain stronger foot hold. Companies like Vodafone which increase their media spending during recession times will reap the benefits during upturn.

Author: Sanjay

India votes...

I am writing this blog just a day before general election results will be announced .In this election marketers tried to sell political parties to voters like any other product and services.

Media was used and exploited by almost all the political parties. There was significant role played by news media in influencing voters in the general elections...

You will be surprised to know that political parties spent around Rs 800 crores in two months on communications — an amount that top advertisers like Hindustan Unilever spend in an entire year.

So why this was done this year??

The obvious reason which I could think of is that, this time, there were more than 10 crore first-time voters, mostly in urban areas.

So the political parties after identifying (segmenting) this group targeted the voters by using most effective media.

Media may not yet swing an election in someone’s favour but media, more than ever is gaining a reputation of being an influencer.

An average urban Indian viewer is mature enough to understand the exaggerations, but the same cannot be said about the semi urban and rural voters for whom TV is possibly one of the most important influencer.

Mistri diagnosis:

What we see and read is only the battle between the post, power and money. So it is like voting for the best amongst the worst. Media does play the role of informing the citizens on what’s happening in the country about politics, but when it comes to the individual decision of giving votes, I’m sure most of the citizens do not even know their candidates. So this time I am in favour of conventional marketing because advertising for political parties is different from advertising for products and services .The earlier method of door-to door voting was at least more informative.

Author: Sanjay

I am delighted...

Today businesses are sustained by customers. Satisfied customers keep a business afloat while delighted customers make it grow by leaps and bounds.

This makes more sense during the time of economic slowdown, marketers should try to exceed customer expectations and create customer delight.

That is what exactly Vodafone has done…

If you have prepaid subscription it may have happened many a times that you were unable to complete an important conversation. So many words remain unsaid as you were not able to buy a new refill. Well, Vodafone comes up with an amazing innovative solution which exceeds customer expectations.

Vodafone is offering a little bit extra just when you need it the most. Vodafone subscribers will now get a Credit of Rs. 10. If you are a Vodafone prepaid subscriber with a balance less than Rs. 5 then take advantage of this offer. Just sms CREDIT on the toll free number 144 and Rs. 10 will be credited to your account.

I am a Vodafone user and I am delighted

Mistri Diagnosis:
“Consumer is no longer the King. He is God,”
The marketers need to listen to the instructions of consumers and accordingly build their brand around them.
People don’t really need advertising, services drive the best brands not traditional advertising. There is a need to bring in innovation. Brands have to be honest and relevant and need to reach out to people.

Author: Sanjay

IPL and I-pill

Protecting your wicket even when your partner makes the wrong call

If you are a cricket fan you must be following IPL a.k.a. the revolution (and money) of Indian cricket and you must have as well come across i-pill advertisement…

Both are revolutionary concepts and are targeted to the fast and furious, outgoing, upbeat, affluent and instant generation youth. They look for quick results, be it cricket or a serious issue like avoiding pregnancy, through bold cheerleaders and advertisements respectively. Result - a great hit.

Marketers are targeting the new breed of fashionable, educated, rebellious youths who like to hang out in a Cafe Coffee Day, live in a virtual world Orkut, watch F.R.I.E.N.D.S & Roadies, own a Levi’s or an iPod. Moreover, they are not hesitant to pop in an emergency contraceptive like Cipla’s i-Pill.
Before 2005, emergency contraception (meaning contraception taken by women after intercourse to prevent unplanned pregnancy) was a prescription drug in India. In a country where one can obtain diabetes drugs from the local chemist, this meant that the so-called “morning-after pill” was not widely available, and anyway not discussed in public. The law changed which allowed the drug to be sold over the counter, and Cipla cracked i-pill… a brilliant product and a clutter breaking campaign.

The initial advertisements featured good looking people saying “An unplanned pregnancy can result in a traumatic abortion” with a tag line “Because prevention is better than abortion.” Brilliant marketing… but who is Cipla intended to target? The affluent but not so bold, actual consumer (women) or the influencer (men). In case of i-pill, the primary target (consumer) is women and the secondary target is men.
Today, men at large play a dominating role when it comes to issues related to sex and are known to be more bold and outspoken about it. Therefore in many cases they make the purchase, if not, at least will be major influencers in the purchase of contraceptive pills.

Therefore reaching this particular segment is important for a brand like i-pill and Cipla has made a smart move by using IPL as a vehicle to carry the message. Cricket is a religion in India and the Indian youth (men) constitute a large percentage of its devotees.

“Cipla is exploiting IPL’s popularity at the cost of consumer’s health”
But, the advertisement says NOTHING about the side effects, how it’s intended to be used as contraception, not as a first line of protection... The marketers have hidden information that might cannibalize their sale… No warning, no caution.

So I tried to get some information about the magical pill…here it goes.
The pill gives the body a burst of synthetic hormones, which effectively disrupt the hormone cycles required for a successful pregnancy. While it will not cause future infertility, long-term effects are still not known entirely and immediate side effects could include nausea, vomiting, headaches, breast tenderness, dizziness, fluid retention and irregular bleeding. The pill also does not guard against STD’s like HIV and is effective only against a potential pregnancy at the time of popping the pill.

Mistri diagnosis:
So where does the fault lie? Who can we blame for this failure in mass communication? Is it Cipla, for putting their name behind such a deceptive advertising campaign? Is it the Indian law, for allowing such advertisements? Or is it India’s education system?
I-pill is a contraceptive pill and should be promoted in the same fashion, misleading consumers might shoot the sales in short run, but in the long run brands that are true to the consumers are the most loved and trusted ones.

Author: Sanjay

Revolver, Affiliation and Aspiration

I found a movie ‘Revolver’, written and directed by Guy Ritchie starring Jason Statham of ‘The Transporter’ fame in the common network folder. The movie had some interesting lines which I later found out to be laced with Kabbalic philosophy like – ‘In every game and con there's always an opponent, and there's always a victim. The trick is to know when you're the latter, so you can become the former.’
But the following lines struck me the most –

‘There is something about yourself that you don't know. Something that you will deny even exists, until it's too late to do anything about it. It's the only reason you get up in the morning. The only reason you suffer the shitty puss, the blood, the sweat and the tears. This is because you want people to know how good, attractive, generous, funny, wild and clever you really are. Fear or revere me, but please, think I'm special. We share an addiction. We're approval junkies. We're all in it for the slap on the back and the gold watch. The hip-hip-hoo-fuckin' rah. Look at the clever boy with the badge, polishing his trophy. Shine on you crazy diamond, because we're just monkeys wrapped in suits, begging for the approval of others.’

Is it something familiar to all of us? Do we actually care so much for acceptance and recognition? Otherwise why would we be so concerned about sporting a pair of LeVI’S jeans or a branded shirt from Arrow! It irritates me every time my girlfriend buys a Loreal or a Wella product instead of a Lakme or a Garnier. Is there really a need to go to Bocha Grande (Koromangala) for breakfast or to Serengeti for lunch? How does it help to dine at Bon South (Koromangala)? Will I have six pack abs quicker if I work out in Chisel (Koromangala) instead of my local gym in Sampangiramnagar? Sometimes I can’t help questioning my own rationale! Isn’t it possible to be accepted if I kill my hunger with a plate of kushka (Rs.10 colored rice) and a leg piece kabab from Anekal. Anyway, I feel complete with a neatly ironed locally tailored shirt and a pair of black trousers. Will my girlfriend scowl at me? May be she will!

Mistri diagnosis:

All individuals are motivated to find and create a specific amount of social interactions. The Need for Affiliation describes a person's need to feel a sense of involvement and 'belonging' within a social group. Combine this with the concept of aspiration products. Consumption audience (who can afford) and aspirational audience (who wants to be known as a consumption audience) together form the aspirational product's target audience. The ratio of consumption audience to aspirational audience is generally calculated as 30%-60%. This 30% and 60% forms a large chunk of the bubbling Bangalore population. Weak aspirational brands have target audiences that are almost as large as their exposure audiences (e.g. mp3 player brands), and are therefore slowly becoming commodity brands, e.g. brands with consumption audiences that coincide with the exposure audience (and therefore, brands without an aspiring audience).
As a general rule, an aspirational brand and its products can command a price premium in the marketplace over a commodity brand. This ability can to a large extent be explained by the consumer's need for invidious consumption for which he is willing to pay a premium. The smaller the size of the product's target audience compared to the exposure audience, the more the product satisfies this need, and the higher the premium that such a consumer is prepared to pay.
May be this is why we are seeing a rise in the premium brand segment around.
Good news for marketers and business owners.
Bad news for us, the not-so-rich aspirational audience!

Guest Author: Ching

Bike for dummies???

You must have come across Bajaj XCD advertisement while watching IPL. The advertisement talks about free bike challenge. The free bike challenge goes something like this - “test ride the new XCD 135 DTS-Si. Thereafter if you buy any bike we will pay for it”

Having a good product is no longer enough. You also have to be able to tell the story of your product and gain trust of your customers in a world where nobody trusts anything.

But surprisingly, story telling is not so easy and specially to the Indian middle class and youngsters in the middle segment, to whom the bike is being targeted. The advertisement tries to sell aspirations when in reality; consumers of this segment are rationale buyers.

The marketing campaign cracked by O&M is very conventional which will not work because the terms and conditions are scandalous.

There are 13 terms and conditions mentioned on the Bajaj auto website which are not shown on the advertisement. After reading the terms and conditions you will realize how deceptive is the free bike challenge. Few of the decisive terms and conditions are as follows:

1. The test-ride challenge offer is made by Bajaj Auto and its select authorized 2-wheeler Dealers

2. The offer is valid only after taking a test ride on the Bajaj XCD 135 DTS-Si and on purchase of either the Bajaj XCD 135 DTS-Si or any motorcycle model of any manufacturer in the 100-135 cc engine capacity within 15 days of the test-ride.

3. (Most stirring) The decision of the Bajaj Auto Dealer based on the result of the draw shall be final and binding and is non-contestable. No correspondence will be entertained on the same.

The same product’s advertisement by O&M of Bajaj XCD 135 DTS-Si where the ad opens with two girls in a house, dressed in leather, fighting sleekly against each other in filmly style martial arts to be the pillion rider. Marketers think women are dumb enough to fight over a pony 135 cc bike. Or the consumers watching the advertisements are dumber…I think the marketers are the dumbest of all. Storyline is not really bad but this ad would have been more appropriate for some huge and premium segment bike.

Mistri diagnosis: All marketers tell stories. And if they do it right, we believe them. No marketing succeeds if it cannot find an audience that already wants to believe the story being told.

An advice to marketing team of Bajaj and O&M- "Make your story bigger and bigger until it's important enough to believe."

Author: Sanjay