Marketing Initiatives in Indian IT Services Industry – A Survey 2010

Sponsor: Indira Institute of Management, Pune
Date Published: 15th August 2010

Description:
Although the value of marketing is accepted at a high level, most business executives are unable to definitively articulate the precise contribution that marketing brings to business. There is always a risk of either over–investing or under-investing in marketing.
Simultaneously, the rapid proliferation of new media in which to invest has marketers struggling to understand which options can deliver the greatest return.
Buying cycles can take months and encompass multiple communications vehicles. Deciphering the effectiveness of a specific marketing initiative in such an environment is a daunting task.
Marketers need to gain a better understanding of how to allocate resources across media types to optimize ROI.
Once marketers can analyze and better understand the impact of their marketing initiatives on their prospective buyers, they are in a good position to make smart decisions on how to optimally allocate their investments to have the greatest positive effects on the revenue.
This report gives a detailed look at how a marketing function is handled, various marketing tools used and their effectiveness and also marketing budgets and its performance across the Indian IT services industry.


Key findings highlighted in report:
 Marketing in Indian IT Services Industry has evolved from Push to Pull strategy and is now turning to Inbound Marketing.
 Marketing Tools such as case studies, white papers, blogs & social media, etc are being increasingly used and are becoming more important.
 Content Marketing, therefore becomes new age mantra for IT Services marketing.
 Other marketing tools like Events, Conferences & Exhibitions, Webinars and Analyst Relations remain to be the primary lead generating tools for Indian IT Services Industry.
 With marketing measurement tools & techniques, marketing activities are being made accountable while with web analytics, they are being made more efficient by leading IT companies.

Topics covered in the report:
a) Marketing Function in Indian IT Services Companies
i. Its Role
ii. Its Effectiveness
iii. Its Control
b) Marketing Tools used by Indian IT Services Companies
i. Most Popularly Used Tools
ii. Most Effective Tools
c) Marketing Budget Allocation by Indian IT Services Companies
d) Marketing Performance and Marketing Measurement by Indian IT Services Companies
e) Current Marketing Trends & Innovative Tools used in IT Services Marketing
f) Challenges in B2B IT Services Marketing


Companies included in study:
Capgemini, Cognizant, Cybage Software, Geometric Ltd, Hexaware Technologies, KPIT Cummins, Mahindra Satyam, Mindtree, Patni, Persistent Systems, Symphony Services, Syntel, Tata Consultancy Services, Wipro Technologies, Zensar Technologies, Calsoft Inc, Ignify Software, Innominds, Justmeans, Prion PLM & IT Services, Saama Technologies, Uniken Systems, etc.

Study Methodology:
In June-July 2010, a web-based survey was used to gather data from above mentioned companies about their marketing function, marketing tools they use & their effectiveness, marketing budget, marketing measurement & performance.
24 unique companies responded to it and the collected data- primary & secondary was analyzed based on the company size.

Respondents’ Demographics:
Company Size – No. of employees:
• Small: Less than 100 employees — 4%
• Medium: 100 to 1000 employees — 33%
• Large: More than 1000 employees — 63%

Company's Revenue:
• Less than $500M — 54%
• $500–999.9M — 21%
• $1–5B — 17%
• Greater than $5B — 8%

Limitations:
 It was difficult to reach the relevant marketing managers in the sample IT companies who were responsible for pure external marketing activities of the company.
 Not all marketing managers who took the survey were in a position to answer higher-management level questions such as that of marketing budget, while some others did not wish to disclose confidential information.
 The quality of responses may not be the most credible ones as some respondents took a good 10 minutes time to fill the questionnaire while a few took only 4 minutes as recorded by the system.

For more information, please write to anita.nerkar@gmail.com

Driving Innovation

Innovation is believed to be the only competitive advantage to any business organization today.

Lets us see how,

A company launches a new product, sooner or later its competitor too comes up with same equally good product. Tata Docomo launched itself with 1paise per second calling rates and rest of the telecom operators followed suit. Thus, although novel ideas and schemes attract considerable market share and sales, they don’t remain as your company’s “differentiating factor” for a very long time.

So, here we come to the point that not all novel ideas can really be counted as ‘innovation’, especially those which can be easily copied by your competitor. An innovation is such a business model that is path-breaking, disruptive and sustainable.

The Wikipedia defines innovation as a change in the thought process for doing something. Or let us simply call it as “Out-of-Box Thinking”. Therefore innovation to an organization could mean not only new path-breaking products and advanced technology, but could also mean new processes, channels of distribution or entirely a new business model. Thus, innovation may be applied not only to any of the 4Ps or 7Ps of marketing, but also at any point of your entire customer experience with your product or service.

When we talk of innovation, first thing that clicks is Apple’s innovative range of products like first the ipod, then the iphone and now the ipad. Another common image of innovation is Mr. Ratan Tata’s Dream car “The Tata Nano”. This common man’s Rs.1 lakh wonder car was a result of new patented technology and use of new materials.

Just like the car made available to masses, it is actually possible to bring about economic and social development of the country through innovative solutions.

State Bank Of India was the first bank to reach the rural section of the poor people through innovative banking solutions provided by Tata Consultancy Services. Banking was not extended to the villages earlier because of poor infrastructure and networking problems. It could not afford netwrking costs due to low value transactions in the villages. TCS then came up with branchless banking solution with with the help of cloud computing. Instead of being connected to Core Banking software, it allowed the bankers to use a handheld electronic device to read smart cards carrying biometric information that were issued to their customers. The transaction details would be updated through web server.
It is a win-win situation for all the parties.

ITC’s E-Choupal that allows procurement of agri-products directly from farmers and online access to farmers of far-away markets, Fab India that developed communities of artisans into its supplier companies and made mass production of handicrafts possible are also examples of such innovative business models.

Aravind Eye Hospital in Madurai has become a legend for its surgical productivity. The statistics regarding number of surgeries its doctors performs and the costs associated with it are simple mind-boggling. It is mix of –efficiency, quality, compassion, philosophy and family which cannot be transposed elsewhere.

Many organizations have value engineering and value analysis processes in place to increase value. After all, innovation is all about creating value through non-traditional approaches.

Innovation is receiving importance in business world today, so much so that countries have Global Innovation Index which is a measure of the level of innovation of a country, (concept produced jointly by The Boston Consulting Group (BCG) with some other associations).

Innovation is the main emphasis of executive managers today for they they know
“To Innovate is To Survive”

Youngistan ka “WOW”

Pepsi, the flagship brand of PepsiCo had introduced the concept of “Youngistan” a couple of years ago. Its current campaign of “Youngistan ka WOW” featuring Ranbhir Kapoor builds on the same youthful spirit. It attempts to show that youth is audacious and lets things happen in their own way.

Youth Traits are much talked about today especially in the marketing world of telecom, two-wheelers, fast moving consumer goods and lifestyle products. Men and women in the age group of 20 to 30 years is their target audience.

A brand is considered to be dying sooner or later if it cannot capture attention of the youth.
It is one such segment that is ready to experiment, try new products, take risks and also have money in their pockets along with willingness to spend.

According to National Council of Applied Economic Research (Dec 2009), 37.9 per cent of 1.2 billion Indian population falls under youth category (age group of 13 to 35) and out of them 72.8 per cent are literate. Quite interesting figures! A huge market potential!

Market research and advertising agencies are all busy these days studying the psychographic profile of this young Indian.
They believe that today’s youth are

Individulastic

Iimpatient
Networked
Novelty Seeker
Value Conscious
Realistic

A company like Bharti Airtel has assigned mentors to the senior executives of the BroadBand Services to understand what young people want and how they live. Yes, those mentors are young 25-year-old employees of Airtel itself…! The executives including the chiefs & heads spend time with their respective mentors to understand how perceptions can be mapped through blogosphere, what is F1 Racing and the networked world of youth.

A company like Levis has its marketing executives in the age group of 28 to 30 years and believes in keeping their company culture young & fresh. Recently, it tied up with banks to offer denims on installment. When Apple launched ipod, it added a slot in their denims to keep the machine.

About 80 percent of customers of Virgin Mobile are below the age of 30. Youth spend about Rs. 500 per month on mobile phones which is more than the national average. Social networking sits like Facebook & Twitter show how networked the young generation is.
Electronic media is getting more popular than the print media. Companies are releasing their ads on You Tube as soon as they are released on television.

Dabur, an FMCG brand realized, a few years ago that its market was above 50 years and that set alarm bells ringing for it. After an extensive market research, it realized that age group of 30 years is heath conscious and gets engaged with the ayurvedic and health products but find them very unimaginative and boring. It was then, that Dabur repositioned itself after giving its logo and packaging a new contemporary look and connecting with the youth. It took on board Mahendra Singh Dhoni as its brand ambassador along with Amitabh Bachchan.

Althhough celebrities like John Abrahim, Ranbhir Kapoor, Genelia D’Souza establish a strong connect with the youth, there are brands like FastTrack that have managed to strike a chord with their customers despite not using celebrities. They believe “There is also an opportunity to be a brand that can be a mentor.”

“Why Play Akele?” was another quirky, bold and on-the-face campaign by social networking site Ibibio.com to entice the youth. It believes that the young audience understands quirky and edgy, and they don’t like straight talk.

So, we find that most of the companies around are speaking the language of youth today…!
It is Youngistan ka wow!
Guys & Gals, its our time to rock the world!

How the Best of the Best get Better and Better

I was quite inspired by this article written by Graham Jones.

He talks about the miler, Roger Bannister who made something impossible possible...He ran a mile in less than 4 minutes before which doctors believed humans were incapable of.

If anything stops you from achieveing something, its your self-limiting mindset.

He writes that Elite performers are differentiated from the ordinary masses by "Mental Toughness".

They LOVE THE PRESSURE. They thrive on pressure and excel when the heat in turned on.

Become the MASTERS OF COMPARTMENTALISATION.

They rise as a result of meticulously done plannning & achieving small goals without losing the focus of LONG-TERM GOALS.

They use competition to hone their skills. They train with the people who push them the hardest.

Its tough to get to the top, but toughest to remain at the top. Keep

REINVENTING YOURSELF.

COMPETE WITH YOURSELF

ASK FOR RELENTLESS FEEDBACK

And to mark every victory and achievement, CELEBRATE YOUR VICTORIES.

Gift yourself a gift that can remind you of your achievement.

And finally, Never Say Die Spirit.

The WILL TO WIN.

Green Marketing

Green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.

Why Green Marketing?
There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behavior. They are even reay to pay a premium price for eco0friendly products. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services.

Benefits of Green Marketing
Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies which are not concerned for the environment.

Adoption of Green Marketing
There are basically five reasons for which a marketer should go for the adoption of green marketing. They are - Opportunities or competitive advantage, Corporate social responsibilities (CSR), Government pressure, Competitive pressure, and Cost or profit issues.

Green Marketing Myopia
In 1994 , Philips launched the “EarthLight,” a super energy-efficient compact fluorescent light (CFL) bulb designed to be an environmentally preferable substitute for the traditional energy-intensive incandescent bulb. The CFL’s clumsy shape, however, was incompatible with most conventional lamps, and sales languished. After studying consumer response, Philips reintroduced the product in 2000 under the name “Marathon,” to emphasize the bulb’s five year life. New designs offered the look and versatility of conventional incandescent light bulbs and the promise of more than $20 in energy savings over the product’s life span compared to incandescent bulbs. The new bulbs were also certified by the U.S. Environmental Protection Agency’s (EPA) Energy Star label. Repositioning CFL bulbs’ features into advantages that resonated with consumer values—convenience, ease-of-use, and credible cost savings—ultimately sparked an annual sales growth of 12 percent in a mature product market.

While noble, the benefit appealed to only the deepest green niche of consumers. The vast majority of consumers, however, will ask, “If I use ‘green’ products, what’s in it for me?” In practice, green appeals are not likely to attract mainstream consumers unless they also offer a desirable benefit, such as cost-savings or improved product performance.

Thus, Green products require a good marketing mix along with good marketing strategies.

Green Marketing Mix
Product
The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources (Keller man, 1978).
Price
Price is a critical and important factor of green marketing mix. Most consumers will only be prepared to pay additional value if there is a perception of extra product value. This value may be improved performance, function, design, visual appeal, or taste. Green marketing should take all these facts into consideration while charging a premium price.
Promotion
There are three types of green advertising: -
· Ads that address a relationship between a product/service and the biophysical environment
· Those that promote a green lifestyle by highlighting a product or service
· Ads that present a corporate image of environmental responsibility
Place
The choice of where and when to make a product available will have significant impact on the customers. Very few customers will go out of their way to buy green products.

Green Marketing Strategies
Here are some Marketing messages connecting green products with desired consumer value:
1) Efficiency and cost effectiveness
"Did you know that between 80 and 85 percent of the energy used to wash clothes comes from heating the water? Tide Coldwater—The Coolest Way to Clean.” —Tide Coldwater Laundry Detergent
2) Health and safety
“20 years of refusing to farm with toxic pesticides. Stubborn, perhaps. Healthy, most definitely.”
—Earthbound Farm Organic
3) Symbolism
“Make up your mind, not just your face.” —The Body Shop
4) Convenience
“Long life for hard-to-reach places.” —General Electric’s CFL Flood Lights
5) Bundling
“Performance and luxury fueled by innovative technology.” —Lexus RX400h Hybrid Sports Utility Vehicle
SOURCE: Compiled by J.A. Ottman, E.R. Stafford, and C.L. Hartman, 2006.

Challenges Ahead
· Green products require renewable and recyclable material, which is costly
· Requires a technology, which requires huge investment in R & D
· Majority of the people are not aware of green products and their uses
· Majority of the consumers are not willing to pay a premium for green products unless they get value in return

Thus, Green marketing is something a marketer cannot afford to neglect. Being socially responsible and eco conscious is the need of the hour. You must find an opportunity to enhance you product's performance and strengthen your customer's loyalty and command a higher price for an eco-friendly product.

Extracted from:
GreenMarketing Mypoia - June 2006 issue of Environment. Volume 48, Number 5, pages 22—36. © Heldref Publications, 2006.

Green marketing – opportunities & challenges by miss. P. Pirakatheeswari

The Fern & The Bamboo

Story : The Fern and The Bamboo
One day I decided to quit…I quit my job, my relationship, my spirituality.
I wanted to quit my life. I went to the woods to have one last talk with God.
“God”, I said. “Can you give me one good reason not to quit?”
His answer surprised me.
“Look around”, He said. “Do you see the fern and the bamboo?”
“Yes”, I replied.
“When I planted the fern and the bamboo seeds, I took very good care of them. I gave them light. I gave them water. The fern quickly grew from the earth. Its brilliant green covered the floor. Yet nothing came from the bamboo seed. But I did not quit on the bamboo.
In the second year the fern grew more vibrant and plentiful. And again, nothing came from the bamboo seed. But I did not quit on the bamboo.
“In year three there was still nothing from the bamboo seed. But I would not quit. The same in year four.
“Then in the fifth year, a tiny sprout emerged from the earth. Compared to the fern, it was seemingly small and insignificant.
But just six months later, the bamboo rose to over 100 feet tall.
It had spent the five years growing roots. Those roots made it strong and gave it what it needed to survive. I would not give any of my creations a challenge it could not handle.
“Did you know, my child, that all this time you have been struggling, you have actually been growing roots? I would not quit on the bamboo.. I will never quit on you.
“Don’t compare yourself to others.” He said. “The bamboo had a different purpose than the fern. Yet they both make the forest beautiful.
“Your time will come”, God said to me. “You will rise high”
“How high should I rise?” I asked.
“How high will the bamboo rise?” He asked in return.
“As high as it can?” I questioned
“Yes.” He said, “Give me glory by rising as high as you can.”
I left the forest, realizing that God will never give up on me. And He will never give up on you.
********************************************
Never regret a day in your life.
Good days give you happiness; bad days give you experiences;
Both of them are essential to life.