Creative that cracks the code

Creative that cracks the code

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  CREATIVE THAT CRACKS THECODE
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  EARLIER WEB BROWSER Pollutedwith mortgage refinancing and weight-loss ads
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  NOWADAYS WEB BROWSER ad-optimizingtechnologies and filter-defying product placement, search-based ad serves, real-time media bidding, and location-based features.
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  HENCE WE CANSAY THAT : MARKETING IS A SCIENCE NOT AN ART
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  SIX CAMPAIGNS THATCRACKS THE CODE OF ADVERTISING :
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  1 Variations on ameme: wonderful Pistachios
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  • Advertising creativeknows the power of memes • Wendy’s tagline “Where’s the beef?” were picked up and repurposed from preschools to presidential debates.
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  PISTACHIOS CAMPAIGN ANDADS • The campaign started using celebrities which was successful • National TV spots in its first year yielded a 233% increase in sales.
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  INDIAN CONTEXT Adidas Indiaad
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  SOME INSIGHTS ABOUTADIDAS INDIA AD • The idea is to connect people , give goodies & promote their product • The brand’s objective is to create a buzz about the Adidas Originals Store that has been newly launched in Chennai via Twitter and also drive more walk-ins to the store • User have to tweet with a hashtag #tweetatee between 5pm & 5:15 pm to avail free tee
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  2
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  • Plenty ofadvertising is already embedded in electronic games • The new wrinkle is that gaming can be embedded in ads • Coca cola china TV ads allow viewers to “chok” bottle caps flying across their tv screen
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  • Electronic gamesstarted out as all whiz-bang technology • Today’s gamers demand not only stunning visuals but also narrative and emotional depth
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  3 Collaborating with Crowd: Oreo Cookies
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  CROWDSOURCING • Business worldrediscovered, crowd sourcing is way to get fresher, better ideas • Tongal can be used to extract ideas
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  CROWDSOURCING • Time commitmentasked to the crowd measures in minutes • 99% of the people lacks time & engagement
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  • Brand launcheda 100 day series of cookie designs • Invited people to nominate pegs every morning & vote later for best design
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  Sharing of Oreo's Facebookpage rose by 4,400%
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  INDIAN CONTEXT Zomato CrowdsourcingFor It’s New TVC #20toMillion
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  • 20 secondsof creative work can fetch you a Million • Zomato is on the hunt for it’s next television commercial and instead of going to a well-known agency, it is knocking at your doors • The winner will be awarded with Rs 5 lakh
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  4 Just Enough Humour: Kia Motors America
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  • Kia motorsAmerica showed roads filled with hamster wheels • Evoked the drab mindlessness of daily commute • The hamster ad showed everyone a “new way to roll”
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  • They’re funnybut not uproariously so. • That is the key to their product selling success • “excessive amounts of entertainment” tend to backfire and actually reduce an ad’s persuasiveness”.
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  • There isnot a single humorous line in two of the most influential books in the world, bible and the Sears, Roebuck catalog • Be Funny but not too Funny • You can entertain a million people and not sell one of them
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  INDIAN CONTEXT Vodafone –Zoozoo-
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  • Vodafone Zoozoo's were launched during the IPL season by Oglivy & Mather, India • 25 zoo zoo commercials released each day till the end of IPL season 2. • These scrawny big-headed creatures, Zoozoos are actually ballet dancers dressed in white outfits while their facial expressions are black stickers
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  5 A New Social Movement: Marksand Spencer
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  • “socially responsible”goods cost more to produce than alternatives and those costs translate into higher prices • When marketers gets committed social responsible goals tries to change consumer behaviour
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  Marks and Spencer •M&S and Oxfam launched Shwopping in April 2012 • CEO Marc Bolland : “We’re leading a change in the way we all shop for clothing, forever”
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  INDIAN CONTEXT Ford India“I Pledge To Drive Safe” Facebook Campaign
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  • The Facebookapp had multiple pledges which can be chosen by fans with badges to be earned • It also has a leadership board displaying top pledgers • The idea of safe driving was brought out through fun and sharing on Facebook
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  6 Ads That “Go Native”: NeimanMarcus and Target
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  • Content providersmaintain an uneasy alliance with advertiser • Ads enjoy greater attention when they are hard to separate from the content that surrounds them.
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  • Target andNeiman Marcus teamed up on some merchandise and decided to advertise it on ABC’s drama series Revenge • First they opted for a “takeover” of the program • Finally they hired the show’s cast to advertise for them
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  INDIAN CONTEXT Cadbury diarymilk advertising through Kaun banega crorepati (KBC)
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  • Cadbury diarymilk promotes itself by providing the kbc winner with its product.
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  MODULE 3
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  DECLINE AND DEATHOF BRANDS • Branding used to differentiate sellers • Customer based brand equity has been developed • Death of a brand is preceded by slow and debilitating decline over a prolonged period Brand Equity – “ The differential effect that consumer knowledge about a brand has on the customer’s response to marketing activity ” Famous Brands that declined over time : • Pan America • GM Oldsmobile
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  CAUSES OF BRANDDECLINE
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  PRODUCT EVOLUTION CYCLE Monitoredby 3 forces: • Managerial and entrepreneurial activities (Generative force) • The market environment (The selective force) • Competitors’ actions and responses to marketing initiatives (Mediative force)
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  PRODUCT EVOLUTION CYCLE Managerialactions (generative force) divided into 5 categories: • Product quality • Price increases • Price cuts • Brand neglect • Inability to stay with target market Brands often decline because of “leadership , management & employees making excuses rather than making integrity” – Ron Strauss
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  PRODUCT EVOLUTION CYCLE Environmentalfactors (selective force) : • Markets-dynamic in nature • Major market transformation impacts various companies • Changes in legal environment • Example – cigarette brands • Affected by changes in legal environment • Strong regulation and negative publicity
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  PRODUCT EVOLUTION CYCLE Competitiveactions (Mediative Force) : • Onslaught from competitors • Mergers and acquisitions • Innovative changes • Technological advancement • Cost cutting
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  DECONSTRUCTURING BRAND DECLINE Todeconstruct brand decline , revisit brand equity concept Three key elements of brand equity : • Differential effect • Brand knowledge • Customer response
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  REVITALIZING BRAND • Brand’sequity most valuable asset • Lesser known brands can be valuable • New brands costs lot of money • Revitalizing existing brand is worthful
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  GUIDELINES FOR REVIVALOF A BRAND • Is the brand worth reviving ? • Take a long term perspective • Carefully reposition the brand , invest in it , & educate the market • Correct mismanagement of the brand
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  IS THE BRANDWORTH REVIVING ? Criteria for revitalization : • Significant residual value • Examine all three aspects of brand equity • The revival cost must be comparable to the cost of new product • Measuring the level of awareness • Brands with : singular focus well defined differentiation high premium
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  TAKING A LONGTERM PERSPECTIVE • Long-term perspective is imperative • Vision followed by well through out strategy & execution Example – Netflix vs. Blockbuster Blockbuster marketing strategy to tackle Netflix : • Opened physical store to benefit total access online program • Returning back a rented movie in return for a free movie rental Results : • Rental revenue increased from 4.9% to 10.4% • Subscribers increased by 1 million Example : “ research was the primary tool used to revive the dewalt brand ” - brand manager of dewalt
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  CAREFULLY REPOSITION THEBRAND,INVEST IN IT & EDUCATE THE MARKET • proper positioning • Differentiation Example – Oldsmobile • Playing catch up with the competition • Strong brand differentiation is not followed Result : • GM lost the Oldsmobile brand Brand Repositioning : • GM repositioned the brand by introducing Cadillac
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  CORRECT MISMANAGEMENT OFTHE BRAND • Failure to understand the reasons behind brand decline • Inability to introduce new strategy Ways to address themes behind brand decline : Rebuild quality : • Brand killed by poor quality • Quality must be improved with cost Example – Harley Davidson • Improved quality • Extended product line • Cost cutting strategy Result – sales increased
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  Example cont.… :Hyundai • Significant investment in quality • 100,000 mile service warranty Results : • Hyundai rated above Mercedes Benz in 2006 REBUILD QUALITY
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  RESIST TEMPTATION TO“MILK” THE BRAND Aggressive form of milking entails : • Cutting prices steadily • Reflection of brand weakened position Example : Apple • Losing awareness • Invested in MP3 technology , IPOD • Came to forefront once more Example : Levi’s • Selling lower quality jeans hurts the image • Needs to invest in styling the product
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  So what dowe learn : • Revitalization is a worthwhile exercise • Doesn’t costs much LET THE REVITALIZATION BEGIN !!
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  MODULE
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  It consists of: pricepaid for some goods or services. Rents Fares Wages Commissions Adjusted by: Rebates Dealer incentives Price understanding
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  Changing pricing environment Marketin south-asia Affluent customer Aspiring customer strugglers
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  Internet:buyers discriminate sellers
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  Internet:sellers discriminate buyers
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  Internet: both buyersand sellers discriminate each other Negotiate prices in online auctions and exchanges or even in person
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  Consumer psychology andpricing •Price takers •Accepts prices at face value
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  Consumers arrival attheir perceptions of price 1.Reference prices : compare prices 2. Price quality inferences 3. Price endings
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  Adapting the price Priceadaption strategies •Geographical pricing. •Price discounts and allowances. •Promotional pricing. •Differentiated pricing.
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  Geographical pricing Cash ,countertrade , barter Countertrade features:- 1.Barter 2. Compensation deal 3. Buyback arrangement 4. offset
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  Price discount andallowances •Early payment •Volume purchases •Off season buying Discount pricing is the modus operandi of companies products and services
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  Promotional pricing Loss leaderpricing Special event pricing Special customer pricing
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  differentiated pricing Price discrimination– 1.first-degree ( demand ) 2.Second - degree ( volume ) 3.Tiered pricing - paying more with higher usage
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  Responding to competitors’price change The company must consider: 1.Product’s stage in the life cycle 2. Company’s portfolio 3. Competitors’ intention and resources 4. Market’s price & quality sensitivity 5.Behaviour of costs with volume 6. Alternative opportunities
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  Homogeneous market Cost cut? Enhanceits augmented product Cost rise? Match the price only if beneficial to industry
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  Non-Homogeneous market
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  Issues considered innon homogeneous market 1.Why did the competitor change price ? 2. Does he plan to make the price change temporary or permanent ? 3. What will happen to company’s market share & profit ? 4. What about other companies ? Will they respond ?
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  Low cost competitors v s v s
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  Response to Lowcost competitors 1.Further differentiate the product or service 2. Introduce a Low cost venture 3. Reinvent as a low cost player
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  Setting the price
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  Selecting the pricingobjective 1.Survival 2.Maximum current profit 3.MAXIMUM MARKET SHARE 4.Maximum market skimming 5.Product quality leadership
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  Determining demand 1.Price sensitivity 2.Estimatingdemand curves 3.Price elasticity of demand
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  estimating cost 1.Types ofcost 2.Accumulated production 3.Target costing
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  analyzing competitors’ costsprices and offers 1.Value of competitor’s offer 2.How can a firm anticipate a competitior’s reaction ?
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  selecting pricing method 1.Markuppricing 2.Target – return pricing 3. Perceived -value pricing 4. value pricing 5. Going rate pricing 6. Auction – type pricing
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  Selecting the finalprice 1.Impact of marketing activities 2. Company pricing policies 3. Gain and risk sharing pricing 4. Impact of price on other parties
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  Initiating and respondingto price changes Companies often : 1. Cut prices 2. raise prices
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  Initiating price cuts •Excessplant capacity •Drive to dominate market through lower costs
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  Traps due toprice cuts •Low-quality trap ( consumers assume quality is low ) •Fragile market share trap ( no market loyalty ) • shallow pockets trap longer staying power •Price war trap
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  initiating price increase •cost inflation •Anticipatory pricing •Over demand
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  Ways to increaseprice •Delayed quotation pricing • escalator clauses ( todays price+rise due to inflation ) •Unbundling •Discount reduction
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  Alternates adopted toavoid price increase • product downsizing •Reducing product services , ex-free installation •Using less expensive packaging material •Reducing the number of models offered
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  MODULE
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  • WE LEARNTABOUT CREATIVE PRESENTATION WITHOUT SAYING THROUGH MUCH THROUGH THE SLIDES • EACH LINE SHOULD CONTAIN 7 WORDS ONLY • USE OF CREATIVE FONTS • USE OF PICTURES TO CONVEY MESSAGE • NEGATIVE SPACING IS GOOD
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  These slides werecreated by : Akash Ranjan Pradhan NIT Rourkela As part of an internship under the guidance of Prof.Sameer Mathur IIM Lucknow WWW.IIMInternship.com