MAGMA MAGazine of MArketing

A SIMSREE Marketing Forum inititative

Volume 1, Issue 6

Sydenham Institute of Management Studies, Research and Entrepreneurship Education

Cover story CROWDSOURCING Special Coverage

Green Marketing

Green Energy

CROWDSOURCING By Chandan Patekar, SIMSREE 2011-13 ( Marketing )

The marvels of technology and the shrinking of distances have unleashed the power of crowdsourcing.

Crowdsourcing is a term that was coined back in 2006 by writer Jeff Howe for a Wired magazine article.

‘Crowdsourcing is the act of sending out tasks that are normally performed by an individual to a group

of people.’ The idea is that more minds and hands are better than one and that collaboration creates

innovation. It dramatically reduces costs, cycle time and unleashes creativity.

“Crowdsourcing has virtually overnight generated huge buzz, enthusi-

asm, and fear. It's the application of the open-source idea to any field

outside of software, taking a function performed by people in an or-

ganization, such as reporting done by journalist, research and product

development by scientists, or design of a T-shirt, for example, and in

effect outsourcing it through an open-air broadcast on the Internet.

Crowdsourcing has already had a huge impact on large corporations

such as Proctor & Gamble.”

Crowdsourcing: Why the Power of the Crowd is Driving the Future of

Business by Jeff Howe.

Crowdsourcing is profoundly impacting nations. We have seen

how collaboration using social media, mobile technologies and

the internet converted sparks of muted dissent into revolt in Ar-

ab countries called The Arab Springs. Iceland has decided to

change the original constitution based on suggestions posted by

its 320,000 citizens via Facebook, Twitter and YouTube. By the

same token, the Lokpal Bill was caught in the web of high deci-

bels, political overtones, hunger strikes and media frenzy. How

about using a crowdsourcing approach to the issue? The aam

admi—the real citizens- and not just their self-appointed spokes-

persons could participate in shaping the law through

crowdsourcing? The “crowd” could include constitutional ex-

perts, students of law and ordinary citizens who have a smart

idea. Of course the parliament will pass the bill into legislation.

How is this altering the business landscape? Business, whether global or local, large or small can no longer

ignore the potential or power of crowdsourcing. The objective of collaboration can be to co-create a prod-

uct or service with designers, customers and marketing people working together using an easily accessi-

ble, open platform. In essence, crowdsourcing will tap into a world of ideas and creations. You

“outsource” to a diverse crowd. You may not even know who may be part of this “crowd” and you may

not have any connection or prior relationship with some of the key participants. Using crowdsourcing

brings some genuine advantages to companies and individuals looking to complete defined tasks with

affordable price. The main attraction so far has been its fairly lower price, compared to the price for hiring

a dedicated professional. Also the best thing with the low price is the high number of people who are

ready to work for you anytime.

Not long ago, a blog post on the Harvard Business Review (HBR) website challenged the readers across

the globe to design a house that can be con-

structed for less than $300. With partners

Jovoto, a crowd-sourcing forum for spon-

sored design competitions, and US$25,000

prize money underwritten by the interna-

tional industrial firm Ingersoll Rand, the blog

post resulted in a challenge to bring afforda-

ble housing to the world's poor. The global

award was won by an Indian company:

Mahindra Partners. It started with brain-

storming sessions amongst a diverse group

ranging from structural experts, clean-tech

professionals and technologists. It culminat-

ed into investment of personal time and

effort towards designing a low-skill and low-cost solution. The design that finally emerged as a winner in-

corporates materials which are abundantly available in local markets and utilizes low-technology inputs

and simple design that can be built easily at low-cost.

“In this country we need both economical innovation and crowdsourcing. When resources

are scarce, creativity must be both boundless and borderless.”

Let us take a look at an Indian case of crowdsourcing. Three Goan entrepreneurs have started a

crowdsourcing application called Foodlets ( http://foodlets.in/ ) . Foodlets posts and shares pictures of

food from restaurant menus. Foodlets is an exciting new way for people to discover good food and con-

nect with foodies. It is based on the core concepts of content co-creation and sharing. People can create

foodlets and share with friends, they can affirm the food they have eaten and loved, and tell their experi-

ences about a particular dish. Alternatively restaurant owners can create visual menus and engage with

their patrons Tourists can now see more than a 1000 dishes from some of the best restaurants in Goa be-

fore planning their next holiday. These include local specialties such as Chicken Cafreal, Squid Calamari,

Bebinca, Xacuti, Sorpotel and Pork Vindaloo.

Foodlets’ basic service is free of cost – restaurants can create their own profile pages and foodlets of the

dishes they serve. They also provide a premium paid service, where they create the restaurant profile

page, assign a professional photographer to take pictures of the food and create foodlets with all details.

Additionally, the restaurant and its food are promoted on Facebook and Twitter because that’s where the

people are.

As with all things, there are disadvantages, and interestingly the main disadvantage mirrors the main ad-

vantage: cheap labor results less credible product, compared to professionals. You pay professionals for

their expertise, experience and dedicated spirit, but you buy labor for completing simple tasks. Any task

considered above simple is risky for crowdsourcing. With the crowdsourcing also comes the issue of man-

agement. In most cases you have to manage a large scale of workers, which pretty much waste more of

your time for management instead of solution. Besides, it’s difficult for collaboration between crowd

members as they compete with each other in nature. Worst of all, there’s no contract in most

crowdsourcing cases. Workers can run anytime they want, and your design might be reused by anyone.

But the power and potential of crowdsourcing is too large for companies to ignore. Therefore many com-

panies are looking towards contractual agreements, limited liability agreements, NDAs, modular

crowdsourcing and other techniques to resolve many of these issues. Moreover it is never a good idea to

crowd source your core business process, only initial seeding and data/insight gathering stages. END

NEWS

iPhone 5

On September 12, Apple CEO Tim Cook, launched

the iPhone 5, touted as the thinnest and lightest

iPhone ever. It features a completely redesigned 4-

inch display, a faster A6 processor and a 8 megapix-

el iSight camera. Philip Schiller, senior VP of world-

wide marketing said that “iPhone 5 is the most

beautiful consumer device we have ever created”

http://www.apple.com/iPhone

FDI allowed in Retail, Aviation

In what is being touted as the boldest reforms yet in

prime minister Manmohan Singh’s government, on

Friday, 14th September, the cabinet has thrown

open the gates for foreign chains to enter the Indian

supermarket sector. By allowing 51% FDI in multi-

brand retail, this move allows global giants like

WalMart to setup shop in India and sell directly to

consumers for the first time. The cabinet has also

allowed 49% FDI in the aviation industry. These

moves will undoubtedly help the cash-deprived air-

line carriers.

Green Marketing By Pranav Koli

SIMSREE 2011-13, Marketing

Member of Marketing Forum

The American Marketing Association defines green marketing as “the marketing of products

that are presumed environmentally safe”. It includes a broad range of activities, including

product modification, changes to the production process, packaging changes, as well as modi-

fying advertising.

However, this definition does not do the term justice. Green marketing ( or Environmental

Marketing or Ecological Marketing as it is also called ) does not just include the marketing of

green products, but also suiting your marketing methodologies and strategies so that they

themselves are more environment friendly.

Let us attempt to understand this with the help of our tried and tested : 7 P’s of marketing

Product It all begins with the product. First of all you have to ensure that

your product is environment friendly.

You have to pay special attention to things like manufacturing pro-

cesses, packaging, waste management, sources of energy and others

to achieve this.

Some of the major considerations are :

What is the impact of production, sourcing of materials and

packaging on the environment?

Can minimum levels of packaging and environment friendly

packaging be achieved without compromising product quality

or appeal?

Are your suppliers at least as environmentally friendly as you?

Price Employing green manufacturing techniques might lead to increases or

decreases in the cost of production. In many cases the initial high in-

vestments will be off set in the longer run by lower fuel bills through

energy efficiency measures or an increase in sales caused by a positive

product image. An organization might be able to pass the increase in

production costs to its customers, but this would depend on various

factors such as the level of increase, type of consumer, competitor

prices and the strength of the economy.

Place Organizations need to carefully plan their distribution centers,

distribution timings, distribution strategies to ensure that they

have minimum impact on the environment.

The fastest mode of transportation might be damaging to the environment ( e.g. AirPlanes ), a

environmentally friendly mode of transportation might not be fast enough to meet your needs

( e.g. Canals ), a method of distribution that combines speed with “environmentally friendli-

ness” may increase distribution costs ( e.g. Electric Vehicles ). You have to ensure that you

strike a proper balance between the three

People Your employees are the face of your organization. They

must not behave in a manner which would conflict with

your organization’s image as a green company. You should

encourage your employees to use environmentally friendly

methods of transportations while commuting to their offic-

es like mass transit systems, hybrid vehicles, carpooling

etc. For example. Google offers incentives to its employees

who opt-in to buy hybrid vehicles. One other example is

the increasing use of teleconferencing to replace frequent

travel.

Process Processes are referred to the systems that enable

an organization to effectively deliver its goods and

services. They refer to the activities that your or-

ganization performs which are not the core activi-

ties of your company. It is very important to incor-

porate environmentally friendly processes in the

day-to-day activities of your organization to con-

vey to world that you take the environment seri-

ously. Croma, the electronics retail chain by TATA

has recently started allowing customers to opt-in

for an eReceipt. IRCTC has allowed customers to

carry digital copies of their reservation receipts.

Physical Evidence Much of what your organization does to incor-

porate green practices is back-end oriented,

many times it is intangible. Therefore it be-

comes very important to let your customer

know the steps you have taken to ensure the

future of the planet. Many a times, this is as

simple as letting your customer know why cer-

tain things are done the way they are done. E.g.

To preserve water many hotels wash towels,

bed sheets, etc, only when you explicitly ask

them to do so. Some customers might believe

that this has been done by the hotel only to

save some money. In this case it becomes im-

portant to convey the thinking the behind your

actions to your clients. This is done by placing a

green card in hotel rooms ( as shown alongside ) which conveys this to the customers.

Promotion Now that you have ensured that your product and your mar-

keting is environmentally friendly, it is very important to convey

that to your customers. Some of the above pictures / logos are

an internationally and instantly recognized signs of a green

product. Incorporating these on your product packaging and on

your communication is an instant signal to your audience that

your product is environment friendly.

At the same time, its is also very important to ensure that your

promotion strategy itself is environment friendly. Example :

If you cannot completely avoid using pamphlets to promote your products, you can at-

least ensure that they are printed on recycled paper

Employ environmental friendly methods when filming your advertisement films

Avoid use of paper as much as possible, don't ask users to fill in unnecessary forms, try

and utilize the internet as a medium as much as possible

If you are using outdoor mobile advertisements, ensure that the vehicles you use are en-

vironment friendly

Make extensive use of mobile advertising, online advertising, social media marketing and

other such means of marketing which would reduce the impact on the environment as

compared to using newspapers, television ad spots, etc;

Roadblocks High Initial Costs

The initial investment in going green is quite high. Not just in terms

of money being invested, but in terms of huge R&D involved in fig-

uring out newer, better and environment friendly methods of man-

ufacturing, packaging, etc; a huge change in the operating of the company itself , changing of

the company’s corporate structure, time lag required to get your company onto the green

track.

Going green as a CSR initiative

Many companies undertake green marketing strategies as part of their CSR activities. However,

every company should realize that going green is not just a CSR activity but something that

should be incorporated in the corporate structure of the company itself.

Customers not ready

In a recent study published by MeidaPost, much of the American customers think that green

marketing is nothing more than a marketing ploy. This mindset has be changed with effective

communication.

Green Washing

Green washing is a form of spin in which green PR or green marketing is deceptively used to

promote the perception that an organization's aims and policies are environmentally friendly,

when they might not really be so. Whether it is to increase profits or gain political support,

greenwashing may be used to manipulate popular opinion to support otherwise questionable

aims. ( more at http://en.wikipedia.org/wiki/Greenwashing )

The Road Ahead Why should a company go green ? Well, because it’s the right thing to do. And in the long

term, you might not really have any other option. Costs of traditional fuels is skyrocketing day-

by-day. The rate at which the environment is deteriorating is alarming, this is causing even the

most arrogant governments to take notice. And many countries are passing laws which are in-

centivizing or even forcing companies to adapt green practices in their business. Eventually

every company will be required to conduct business in an environmentally responsible way.

So why not do the right thing now instead of waiting? Why not keep up with the competition—

maybe even beat them to the punch—by becoming the company that owns green in your cate-

gory?

And if you think the economy will keep customers from paying more for an environmentally

responsible product or service, think again. A recent survey has shown that 82% of consumers

are still purchasing green products during the recession.

END

Green Energy By Prathmesh Limaye

SIMSREE 2011-13, Finance

As you try to incorporate more and more environment friendly techniques in the manufacture

of your product and in your marketing strategies, your initial costs shoot up drastically. The

major off-set for this steep rise in the long term is the savings you do by moving away from

conventional fuel and energy sources. Let us take a look at how employing various green ener-

gy techniques, specifically solar electricity panels can help you achieve just that.

Mumbai, India’s commercial capital runs on the electrical power from utility companies such as

Maharashtra State Electricity Distribution Corporation Limited (MSEDCL), Reliance and Tata

Power. The office spaces that are categorized as commercial consumers attract commercial

power tariff at a rate much higher than the industrial or residential rates.

The commercial rates have a two part tariff structure. One component based on the power de-

mand, attracts a fixed charge. The second the

variable component, is more expensive and de-

pends on the energy consumption of the prem-

ises, specially during daytime.

Commercial consumers find that their energy

bills’ variable component becomes high particu-

larly during summer months and around mid-

day on account of more usage air conditioning

when a higher outside temperature requires

more power for maintaining a comfortable

temperature inside the building. Some con-

sumers say that air conditioning system accounts for as much as 75% of their total consump-

tion during summer months.

In 2001, the variable charge was around Rs.3.31 per unit (KWh). In 2012, it is around Rs.11.75

per unit (KWh). It has seen many increases in the last few years rising by more than 250% be-

tween these periods (See Graph). The increases were due to the levying of Electricity duty

(from 6% to 17 %,), introduction of a tax on sale (at a rate of Rs 0.08 per unit) and introduction

of fuel surcharge. Some utility companies even ask for a reliability charge on electricity to con-

sumers. If the past rate increase is any indication of the future expenses for using electricity, it

is time commercial consumers think about consuming electricity smartly.

Fortunately, to counter the variable cost challenge, they have a choice. They can now install a

grid interactive solar photovoltaic (SPV) system on their properties’ roof tops. These days a 1

KWp SPV system comes for about Rs.1.5L. The advantage of using this system is that the power

generated is consumed immediately without the need of having to storing it in a bank of

batteries. The buildings run on a duel power system permitting parallel consumption of power

from the utility companies’ when the solar power falls short or is not generated.

The Government of India provides an accelerated depreciation on such installations in addition

to a subsidy. A good solar photovoltaic system could generate about 5 units (KWh) per day

from a 1 KWp system giving some relief to commercial consumers from the costly grid power.

It is time corporate houses think about installing a roof top SPV system and going for the green

energy. Those with clear sunshine, roof top area and capacity to spare some capital will not

only reduce their power bill but also enhance their public image by generating solar power a

green renewable source of energy.

Many companies are having their warehouses with air conditioning system in Maharashtra es-

pecially the pharmaceutical companies and paying commercial tariff and the above case is also

applicable to them and they can also avail the benefit of nature by going solar photovoltaic en-

ergy generation system on the roof top of the warehouses.

END

Maggi

2 Minute Mein Khushiyaa

Maggi , which created the noodles category in India has now none other than Amitabh Bachchan as its

brand ambassador. The brand is being endorsed by a celebrity for the first time in its history. And Big B

is an intriguing choice for a brand which is most patronized by young children.

Maggi holds a commanding position in the Noodles Segment with over 60% market share. Off late, the

brand is facing competition from brands like Horlicks, TopRamen Sunfeast Yippie etc. And further the

brand is feeling a disconnect with the new generation customers who now have more choices for indul-

gence other than noodles. Maggi now faces not only brand competition but also industry competition

from similar products like Pizzas. Even fast food joints are taking away consumers from the brand. At

this point , the brand needs to stay relevant to the consumers since consumers have a wider choice of

indulgence.

Maggi's choice of Big B as the brand ambassador is little puzzling. Amitabh Bachchan as a celebrity com-

mands immense respect among the audiences. He is an amazing story teller and has unmatched screen

presence and Maggi wants to build more authenticity through his endorsement. The new campaign fea-

turing Big B is an extension of the highly successful Me and Meri Maggi theme where the brand tried to

crowdsource stories of customer experi-

ence with Maggi.

The campaign brought back many seg-

ments of consumers who moved away

from the brand since they have grown up.

The brand again brought back focus on

itself and its heritage and the USP of 2

minutes. The campaign in a way was the

counter strike against the competitor's

focus on health and nutrition.

Big B was introduced as a story teller who

narrates the various stories supplied by the consumers through the various touchpoints created by the

brand. The brand is running a campaign featuring this stories.

View the complete advertisement at :

http://youtu.be/ww8o0aCNDR0

The ads focus on the ease of cooking ( convenience) and the happiness thereby attempting to take the

consumer's focus away from the health platform adopted by Horlicks, Sunfeast Yippie etc. Sunfeast has

roped in Saina Nehwal as its endorser.

The brand has a new slogan " 2 minute mein Khushiyan " . It is interesting to note that the brand has

brought back the 2 minutes proposition after a long time.

Although Amitabh Bachchan is a master story teller, I find some how a disconnect between the brand

and the celebrity. The thought is that " he is not the right person to endorse the brand". This is despite

the fact that he commands respect from across age groups.

Having said that the presence of the powerful celebrity along with the smart collection of real life sto-

ries of brand consumption adds a big boost to this brand. The brand exactly needs such a boost at this

point of its life cycle. The problem with such heritage brand is that over the period of time, the commu-

nication becomes boring. Booster shots like these will again revive the energy levels for the brand to

move and face competition head on.

Original Article by Harish B, posted on Marketing Practice blog at

http://marketingpractice.blogspot.in/2012/09/brand-update-maggis-2-minute-mein.html

Article recommended by :

Devans Patwaa

SIMSREE 2011-13, Marketing

We would like to hear from you, send in your feedback, comments, critique to

simsree.Marketing.Forum@gmail.com

Contributions in form of articles, recommendations or otherwise are always welcome.

Sydenham Institute of Management Studies, Research and Entrepreneurship Education

Volume 1, Issue 6

END