markathon february 2013 edition

8/13/2019 Markathon February 2013 Edition

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perspective markathon|november 2012

BAD PIGGIES AINT SO BADSARTH RASTOGI | IIFT DELHI

When it comes to marketing analysis of any

product/brand, almost instantaneously we, the aspiring

Brand Managers think on the lines whether P&G

came out with a different Ariel this time for Bottom -

Loading washing machines, did Colgate add pickle in

their toothpaste or did Dhoni launch a dye to color his

graying beard.

But there exists a category other than FMCG and

Consumer Goods where Piglets are really

angry for you spread the gossip that they are

at war with the human race by spreading swine flu and

when that was not enough, projected them as the

Mogamboof the gaming world. And yes, they are now

back to take back revenge, challenging the avian lovers-

If you smell what The Rock is cooking!!

Finlands Rovio Entertainment, the company

that gave us Angry Birds has released yet

another masterpiece, a multi-platform

puzzle game- Bad Piggies. The game had a

big challenge to overcome the sophomore

slump/jinx a concept which seems almost

inevitable because of the Statistical

Phenomenon regression towards the

mean (excellently explained in an online

article titled as Why Movie Sequels and

Remakes Almost Always Fail by Satoshi Kanazawa,

London School of Economics and Political Science). In a

nutshell, sophomore slump/jinx refers to an event when

a second attempt to re-enact an overwhelming success

of first attempt doesnt live up to the expectations.

Spin-off versions of megahit game Tetris like Hatris,

Super Tetris etc. never really recreated the same magic.

The world is full of such examples that substantiate this

theory.

The game launched off with high fanfare and

gripped the attention of users who are

probably now busy helping piglets in

collecting egg shells. So much so was the

thrill and excitement level in the gaming

community that within just three hours of its

launch it soared to the top of paid iTunes App

Store charts.

Here is the analysis purely from the marketing

point of view of what helped the game to script

another success story- Many people

suspected that the new product would be a

different version of the main product Angry

Birds as were many of those which were

launched previously. Simple reason was

that analysts and reviewers held the view

perspective markathon|february 2013

4


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that Rovio wont let go off the mega success and the

theme that was clearly a proven winner. Though the

game is a spin-off of Angry Birds, Rovio successfully

changed the rules of the game. The perspective was

different. This ensured that there was no imitation interms of storyline, but at the same time they were able

to leverage the previous successes. Where have you

witnessed this earlier? A glimpse of the James Bond

movie series is enough to corroborate that this is an

important factor. It is a very difficult line to tread but

successive James Bond movies have been repetitively

hit since each time people are taken to a different world

through a different plot theme.

Marketing works wonders when targeted at an

appropriate time. Black Friday is popular in US just notbecause users get brilliant discounts on the products

but also because it sort of unofficially marks the start of

the Christmas festive season. The popularity of Angry

Birds had given Rovio a huge leeway and there were no

major developments done by them during the three

years in between. Too much of Angry Birds merchandise

and advertisements had caused a fatigue in the minds

of customers. The timing of the launchcould not havebeen better since Angry Birds hangover was about to

get over.

The success of any game or for that matter sequel of

any product can be bolstered well if the product is able

to capture more audience than what it originally did.

This game goes a notch above Angry Birds in terms of its

ability to allow users to utilize their intellect to solve the

puzzles. The good thing is that people just dont look at

it as a game but also as implementation of the rules

studied in Physics. The game play is more sophisticated

and people love the fact that Newtonian principles are

required to solve these. This has attracted those people

as well who thought Angry Birds was too childish to

play. In fact, one of the top rated reviews on Google

Play was- Not my style of game, but well done. People

will enjoy this game a lot. This shows that the target

segment that Angry Birds catered to has widened forBad Piggies and is something to cheer about.

Which marketer/retailer/manufacturer doesnt want

repeat business? It is a brand managers dream to

receive repeat business. With the scoring system in

place, Bad Piggies ensures that people try to improvise

on their solved levels so that they can move on to the

next levels. How it helps Rovio is that even when there

are X number of stages in any version of Bad Piggies,

these translate into many more stages since peoplestrive for more stars. The replayability though maysound as a very small factor but when looked from the

Rovios perspective, it gives the developers more time

to understand what people miss in the current version

and hence can incorporate them in subsequent

versions.


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A sustainable revenue modelis a must for any companybut at the same time, a software product cant be

released fully in the paid version. They ought to give

users a try so that they can do a hands-on trial of the

game and then

make a decision.

This is what

most companies

do when they

launch a new

product in

FMCG sectors as

well. To

popularize Zinga

(energy

beverage fromHector Beverages), they had extensive

promotional campaigns in Bangalore so that people can

try it out. This created a demand for the product.

Similarly, if one looks at Bad Piggies, there were some

free versions launched initially with limited stages so

that people can try it out. Later, once users get

accustomed to it and feel the urge for playing more

stages, they can buy the paid versions from App Stores.

In a nutshell, the pricing modelis very effective both increating demand and also in keeping the companygoing.

In the clutter of noise that many promotions and

advertisements create, how can one differentiate itself?

You engage subtly with customers. Create incentives for

them to participate in the interaction with the brand.

With the advent of social networking and related

promotional platforms this can be done very

effectively. Rovio tapped this brilliantly and

this is corroborated by their strong

presence on Facebook. The level of

enthusiasm is pretty evident by the high

involvement of people.

Such creative contributions by the followers

bolster the creation of brand equity. Finally, the

spectacular launch of the game made sure that thepeople were aware of the new game launch. One can

just imagine the kind of publicity a product would get

when the Taipei 101 Tower, one of the tallest buildings

of the world (second only to Burj Khalifa) and a

landmark skyscraper of Taiwan was painted green to

welcome the game. In Shanghai, the Citigroup Towerwas glowed with green light. In London, where the

game was launched at the top slot, Battersea Power

Station (a huge landmark) was taken over by the Piglets.

All of these efforts made sure that the game was a

success from its very launch. This gave immense brand

visibilityand a great brand recall.

All these successful efforts show that Rovio hasleft no stones unturned to gain favourable

presence and will surely help in its case to

achieve a valuation of more than $6

billion that it is aiming through its IPO.

Followers feel that the way things are

going, it may even achieve a valuation of

around $9 billion. If that happens, it will surpass

the ailing Nokia!!!


6


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cover story | markathon|month 2013

10

vartalaap markathon|january 2013

Patrick Barwise is the Emeritus Professor of Management and Marketing at

London Business School, and chairman of Which?, the UKs leading consumer

organization. After having a successful career at IBM, he joined the School in

1976. He has been widely recognized for his publications on management,

marketing and media. His book Simply Better, won the American Marketing

Associations 2005 Berry-AMA Prize and has been translated into seven

languages. His second book, Beyond the Familiar, was published in 2011. Healso works as a consultant, applied researcher, and expert witness and has

been involved in two successful start-up businesses. In this exclusive interview

with Markathon, he shares with us his experiences from the industry and

academia and throws light on some radical trends that will shape the future

including neuro-marketing and video ethnography.

An Interview with Prof. Patrick Barwise

Emeritus Professor of Management and Marketing in London School of Business

vartalaap markathon|february 2013

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10


Focus on what really matters to

customers. In reality, customers rarely

buy a product or service because it

offers something unique. Instead,

they usually buy the brand that they

expect to meet their basic needs from

the categorysmartphones or

mortgages or electricitya bit better

or more reliably and conveniently

than the competition.

Markathon:From a Systems Engineer to a Marketing

Director, what were the turning points in your

inspirational professional journey? And what

motivated you to come back to academia?

Patrick:As an IBM Systems Engineer, I worked in the

team providing sales and service to Barclays Bank, a

key account. I was never a real techie. My interest was

in helping the bank increase the performance of its

IBM systems through better operations management

as well as faster, better-tuned hardware. I was always

more interested in people than technology. Then at

business school, my best subject was finance but I

chose to work in marketing because it too is about

people. Rationally, no-one with the choice would

work in marketing rather than finance because its

less well paid, more difficult and riskier. But Im glad Ichose marketing because its about people; people

are infinitely interesting, and one never stops

learning. As for becoming an academic, I fell in love

with London Business School as an MBA student and I

place a lot of value on personal freedom i.e. the

freedom to work on what I want, and academia offers

you that. It was the right choice for me.

Markathon: As an expert in the field of media and

broadcasting, in your opinion how will the role oftelevision change in the times to come? What will be

the key to making it a relevant and effective medium

going forward?

Patrick: There are a lot of myths about the digital

revolution in television. In reality, unlike print media,

television is in extremely good health. What is

changing, more slowly than

most people believe, is the

distribution of TV content. Butthe content itself, what

people watch as well as how

much, when, where, why,

with whom, and even how

they watch, has changed

very little in the last fifty

years in markets like the

USA and UK. The two

main changes have

been the huge

increase in the

number of channels

(so viewing is now spread over more channels,

although very unevenly) and the improvement in

time-shift technology with the advent of digital video

recorders. However, even in homes with DVRs and

broadband, over 80% of viewing is still live and most

of the rest are the same programs time-shifted using

the DVR or a catch-up service such as the BBCs i-Player. Total viewing has actually increased in the last

five years, mostly on the main set in the living room.

Similarly, TV advertising has maintained its share of

display advertising despite the huge growth of online

advertising. Of course, on-demand and mobile

viewing are growing and there are lots of interesting

developments, but the big picture is very robust.

Markathon:Your book Simply Better: Winning and

Keeping Customers by Delivering What MattersMost has been highly recognized and widely read.

Can you share some highlights of the book with us?

Patrick: Simply Better has won the American

Marketing Associations annual book prize for the best

book in marketing. It has sold well in English and has

been translated into seven other languages. The core

message is simple and obvious: focus on what really

matters to customers. In reality, customers rarely buy

a product or service because it offers somethingunique. Instead, they usually buy the brand that they

expect to meet their basic needs from the category

smartphones or mortgages or electricity a bit better

or more reliably and conveniently than the

competition. The practical implication is that, if you

have to choose between (a) doing what Peter Drucker

said in 1954 meeting customer needs and (b)

differentiating your offer from the

competition, you should always

choose (a). That simple message

goes against marketers

obsession with differentiation

but the evidence to support it

is overwhelming and a lot of

firms have now taken it on

board. The twist is that

when it comes to branding

and advertising that is,

communications aboutyour offer, as opposed

to the offer itself it


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10


really is important to be distinctive in order to cut

through all the noise from the other brands. The

sweet spot is found when your offer meets

customers basic needs better than the competition

and you also have some nice unique features or

benefits and distinctive branding and advertising.

However, the most important part of this is an offerthat meets customers basic category needs better

than anyone elses offer.

Markathon:Your paper The one thing you must get

right when building a brand deals with the most

dynamically changing channel of branding. Do you

think big data analytics can play an important part in

social media marketing?

Patrick: We made two points in that article. First,

marketers have overstated the role of social media in

advertising but understated its role as a source of

customer insight and as a way of improving customer

service. Even in the US, 90% of consumers

conversations about brands are offline, mostly face to

face. Even online, consumers dont like companies

invading their private space. There are some branding

and advertising opportunities, but theyre fairly

limited. The second thing we said is that all this has to

be embedded in your overall management of thebrand, which we illustrated using the framework of

our more recent book Beyond the Familiar: Long-

Term Growth through Customer Focus and

Innovation. This builds on Simply Better, putting

the conclusions into a practical management context,

with a strong emphasis on having an open

organization in which market insights including

things youd prefer not to hear flow freely through

the organization, reach the decision-makers and are

acted upon. Big data analytics will have a growing role

within this, not just for social media data.

Markathon:What are the key measures to making a

campaign go viral in the world of social media?

Patrick: Its difficult. The main principle is that you

need an idea that is so compelling that people will

pass it on. It should also be relevant to your brand

positioning and appropriate. An established brand

shouldnt do a stunt that goes viral but damages its

brand equity. As always, you need good execution.

And usually, you need a publicity campaign, typically

using traditional media and PR, to publicize it. Most of

the successful examples use humour. The best ones I

know are Blendtecs Will it blend? and TNTs Daily

dose of drama.

Markathon: What role can video ethnography play

in efficient design and implementation of marketing

strategies?

Patrick:The main benefit of video ethnography is that

it unobtrusively records what people do in their

natural environment, say at home or in-store. Thats

especially important if their actual behaviour differs

from their claimed or self-perceived behaviour. For

instance, most DVR owners think they watch far more

time-shifted programmes than they actually do and

rarely watch commercials. The reality is very different.

Video ethnography can also help explain behavior, for

instance, by showing viewing within the context of

other family members, perhaps with differing

programme preferences. Another advantage is that

the video clips are great for illustrating these

behaviours to a management audience. The main

downside is that analyzing the data properly is very

time-consuming so sample sizes have to be small.

Relatedly, I recommend that all managers, not justthose in sales, service and marketing, should have

direct customer contact in order to bridge the

empathy gap between managers and customers,

especially in some markets. This encourages customer

understanding and customer focus throughout the

organization, not just for marketing.

Markathon: How do you think neuromarketing can

redefine the process of getting customer insights?

Patrick: Neuromarketing, behavioural economics, big

data, online brand communities, metaphor elicitation

and all the other new ways of developing customer

Other new ways of developing customer

insights should mostly be seen as ways of

supplementing, not supplanting, traditional

market research.


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Be infinitely curious, always on thelookout for new ideas and

opportunities, but dont assume that

the latest thing is as powerful as its

proponents claim. Spend time with

customers as well as looking at data.

insights should mostly be seen as ways of

supplementing, not supplanting, traditional market

research. In a few cases, new methods do largely

replace old ones. For instance, online surveys and

brand communities are usually better, cheaper and

much faster than telephone or face-to-face surveys

and focus groups. But neuromarketing isnt yet at astage where it can really replace traditional research

methods in new product development, website

improvement or advertising evaluation. Instead, it can

provide additional insights and questions for further

testing. The main neuro methods at this point are eye

tracking, various biometrics such as heart beat and

skin conductivity, and EEG. Their main advantage is

that they provide continuous data and tap into fast,

automatic, subconscious processes. The limitation is

that the results are hard to interpret, although that

hasnt stopped some vendors from making some

strong claims that should, in my view, be treated with

caution. The dirty secret of traditional market

research is that it asks people to provide conscious

responses about behavior that involves a lot of fast,

subconscious, automatic processes, both cognitive

and emotional. For instance, from the time someone

sees a house or car to the time when they know if

theyd like to buy it is maybe ten seconds. Thats hardto research, but neuromarketing and other new

methods will increasingly help us do so.

Markathon:What are you working on now?

Patrick: I do corporate and conference presentations

and workshops on the messages in Simply Better

and Beyond the Familiar, to help companies

improve their ability to

do customer-focused

innovation. Im the

Chairman of Which?,

the UKs leading

consumer

organization. One of

its most exciting

projects is Right

Choice, the Indian

equivalent of

Consumer Reportsin the US and

Which? and Which? Online in the UK. I have a

visiting fellowship at Oxford University to work on the

future of public service broadcasting, especially the

BBC, in a digital world. Im involved in a number of

policy areas, especially the investment case for getting

people online, partly so that theyll be able to use

online public services. I work as a consultant and as an

expert witness in legal cases such as the current

dispute between Apple and Amazon about whether,as Apple claims, the term app store is a brand name

rather than a generic term. In addition to Which?, I

also do a number of other pro bono activities

including advising a fantastic project (CleanStar

Mozambique) to encourage Africans to switch from

charcoal to locally produced bio-ethanol as a cooking

fuel. If that succeeds, the health, environmental and

economic benefits will be huge.

Markathon:What would be your advice to our youngreaders who aim to become successful marketers?

Patrick:Read widely but critically. Always ask, What

evidence does the author have for what he or she is

saying? Be infinitely curious, always on the lookout

for new ideas and opportunities, but dont assume

that the latest thing is as powerful as its proponents

claim. Spend time with customers as well as looking at

data. Understand that the questions in marketing are

always much the same why would someone buythis, how much will they pay for it, how can we ensure

that they know about it and can easily buy it, etc.

but the answers are very specific to the particular

brand at that particular moment. So dont assume

that something that worked in one context will

necessarily work in another. Markets are

unpredictable and their response to significant

innovations is hard to

research, so try and use a

fast-cycle test-learn-adapt

approach. Make good

connections with

colleagues in finance,

operations, sales, etc.

Successful marketing is

about collaboration. Be as

evidence-based as

possible: remember the

words attributed to EdDeming, father of total

quality: In God we trust. All others must bring data.


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,H-/,11,0 +2 E,$,/ Norvig, Googles director of

research, We dont have better algorithms. We just

have more data

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numerous successful campaigns like Are you on it?,

How many you have?, Sweet no more and

Fastrack: tees. Fastrack struck the right chord with its

Move on campaign, wherein it l-A-(%6-/ 1. 712.6

peoples aversion to commitment related to relations,

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markathon february 2013 edition

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