All you need to know about the BCG matrix!

BCG matrix and its examples:

The Boston Consulting Group matrix or the BCG matrix was created by Bruce D. Henderson, the founder of Boston Consulting Group, in 1970. The matrix takes into account two major parameters, namely: market share and market growth of business units or product lines. This then helps a given company analyse its business unit, allocate resources and conduct strategic planning accordingly. Based on the current profitability of an organisation, the matrix provides a map of the organisation's strengths and weaknesses.

The BCG matrix has four cells. While the horizontal axis denotes the market share, the vertical axis denotes market growth rate. Both these measures need to be considered individually for every strategic business unit (SBU).The four cells of the matrix are: stars, question marks, cash cows and dogs. The four cells are explained as follows:

1. Stars:

Stars represent business units that have a large market share as well as great market growth rate. SBUs located in this cell of the matrix are very attractive as they are located in robust industries. These businesses are usually very competitive in nature.

2. Cash Cows:

Cash cows represent business units that have a large market share but are located in a mature and slow growing industry. These SBUs are usually a corporation's core business and require lesser investments compared to businesses in the star category. These businesses usually follow stability strategies.

3. Question Marks:

Question marks represent business units that have smaller market shares but are located in industries with great market growth rates. They require great amounts of investment to maintain or gain market share. These businesses may or may not be viable for corporations.  Most businesses start as question marks in an industry with great market growth, but if ignored can turn to dogs.

4. Dogs:

Dogs represent business units that have low market shares in industries with low market growth rates. These businesses are normally liquidated unless new strategies are implemented to gain market shares. These businesses should be minimised in number for the betterment of a corporation.

Some of the examples to understand the practical use of the BCG matrix are as follows:

1, BCG matrix of Amul:

a) Star: Amul Ice-Cream

The ice-cream industry is booming in India with the Business Wire predicting that the industry will generate a staggering USD 3.4 billion by 2021. Amul is the largest ice-cream producing company in the country and has a 14% market share. Although Amul is facing stiff competition from newer brands such as Lotte ( acquired Havmor ice-creams in 2017), it still remains the leader in the category.

b) Cash Cows: Amul Butter

Amul Butter falls under the category of cash cows owing to the limited chances of industry growth. Amul is in fact the sixth largest butter brand in the world with a market share of 2.1%. Amul has come with many variants to its butter to combat the slow growth of the industry.

c) Question Mark: Amul Lassi

Amul Lassi is a healthy beverage produced by Amul. There is great demand for healthy food items in the market and the beverage industry is growing exponentially. Amul Lassi however, has not managed to gain a significant market share. In 2013, Amul contracted DY Works, a design firm to rebrand and reinvent the look of Amul lassi to attract youngsters but failed to make any real impact.

d) Dog: Amul Chocolates

The heavy competition and the limited innovation that the chocolate industry faces has led to Amul chocolates having very little market share as well as little market growth rate.

2. BCG matrix of Nestle:

a) Star: Nescafe Coffee

Instant coffee industry in India is booming. In 2017, the coffee and tea industry in India stood at 418 billion Indian rupees. Nescafe has an astounding market share of 51% in India and is doing well regardless of competition from brands like Bru.

b) Cash cow: Maggi Noodles

After a brief set back in 2015 owing to the ban on Maggi Noodles by FSSAI, Maggi now has a strong 60% market share in India. however, the instant noodles industry on the whole is declining and the market growth rate has become slow as people are opting for healthier food options.

c) Question Mark: Nestle Milk

The packaged products industry in India is thriving. Amul has seen a growth of 11% in 2017 due to the success of its dairy products. With competition from brands such as Amul and Mother Dairy, Nestle is struggling to gain market shares in this significant industry.

d) Dog: Nestle Chocolates

With companies like Mondelez taking up large market shares in India, Nestle chocolates are struggling to gain market share. From 2017, the chocolate industry in India has witnessed a collective set back because of the health concerns of consumers. Nestle even reduced the amount of sugar in its chocolate Milky Bar to fix this problem.

3. BCG matrix of Sony:

a) Star: Sony Led TVs

At the end of 2021, the TV industry in India is set to cross the $9 billion mark. Sony's Led TVs have a 25% market share in India and this number is said to increase to 35% owing to the new launches in Sony's Bravia series in 2019. Thus Sony's Led TVs belong in the star category.

b) Cash Cow: PlayStation

Sony has a 26.7% market share in the gaming market but the slow growth in the gaming market has led to the playstation ending up in the cash cow category. With changing technological interfaces, the popularity of the playstation is going down.

c) Question Mark: Sony Smartphones

The smartphone market in India today is dominated by Chinese brands such as Xiaomi, Oppo etc. Only a handful of Sony's smartphones are competing with these brands and most of these phones are in the premium category. Thus, although the market is growing, Sony's smartphones have a very limited market share in India.

d) Dog: Walkman

Sony's Walkman is a classic example of what happens when a company fails to keep up with the technological revolution. Sony's music players have no market left in the country and their downfall began when these devices proved to be incompatible with fast-growing 3g formats. Thus, this device falls into the dog category.

4. BCG matrix of Pepsi:

a) Star: Tropicana

Tropicana fruit juices that entered Indian market in 2004, currently holds 41% market share in the country. The beverage industry is thriving in India and even after facing stiff competition from products like Dabur's Real, Tropicana has managed to stay in the star category.

b) Cash Cow: Lays

Pepsi's salty snack, lays, is expected to cross $5 billion by the year 2020. However, due to stiff competition from regional brands like Parle's Bingo and the declining market for junk food in urban India has led Lays to enter the cash cow category.

c) Question Mark: 7up Nimbooz

Pepsi tried go traditional with its beverages and launched 7up Nimbooz, which resembled the traditional lemon water consumed by Indians. This product however, struggled to make a mark for itself regardless of the immense market growth in the beverage industry in India.

d) Dog: Pepsi Max

In 2010, Pepsi launched a zero-calorie version of its drink called Pepsi-Max. This product failed in the market because of the pricing of the product and the fact that there was very minimal market growth in the category of sugar-free carbonated beverages.

5. BCG matrix of Coca-Cola:

a) Star: Thums Up

Thums Up is the most popular cola in India with a market share of 42% in the cola market and a market share of 15% in the carbonated beverage market. Coca-Cola has promoted and advertised Thums Up extensively, in order to compete with Pepsi.

b) Cash Cow: Coke

In 2017, the sales of Coke showed a 11% increase when compared to Pepsi. Regardless of this success, the market growth rate for aerated drinks has lost steam and this is a result of consumers switching to healthier beverages like energy drinks and fruit juices.

c) Question Mark: Minute Maid

Fruit juices are a low-margin business and this business has very great market growth rates with consumers turning to healthier beverages. Coca-Cola's fresh juice ventures like minute maid however, have failed to expand and gain market share in the country and are thus in the question mark category.

d) Dog: Diet Coke:

The diet soda market is a dying beverage breed in India. For the last few years, Diet Coke has been the weakest link in Coca-Cola's beverage line-up in India. Thus, with low market share and low market growth rate, Diet Coke belongs in the dog category. 

The Formal Communication Archive!

What formal communication means and how classroom activities help hone formal communication skills:

Communication is an extension of the innate social behavior of every human being. Communication helps build relationships among people and is very crucial for the existence of human society. It is essentially categorized into two types: formal communication and informal communication. Formal communication refers to the official exchange of thoughts, ideas, emotions and information. The flow of communication is controlled deliberately. This allows the information to reach the desired place without any obstruction and gives way to effective feedback from the receiver. 

  

Formal communication has certain unique features that differentiate it from informal communication.

Some of the important features are as follows:

• Formal communication can be both written and oral in nature.
• Formal communication passes through predefined paths of communication throughout an organisation. 
• Formal communication is mostly documented and thus evidence of the communication is present.
• Formal communication usually takes place in official organisations and there is a timely and systematic flow of information.
• Formal communication follows a hierarchical chain of command that is established by the organisation and sometimes there is distortion of facts due to the long chain of communication.
• the sender and the receiver involved in formal communication usually have some organisational relations.  

Formal communication can be of different types depending on the direction of flow of the communication. Some of the categories of formal communication are:

•  Vertical Communication:

Vertical communication is based on the assumption that people working in the higher levels of an organisation have the authority to pass directions and instructions to the people working under them and the people working on the lower levels can approach their seniors with their problems. This form of communication strengthens the authoritative structure of an organisation. Vertical communication can further be divided into upward and downward communication.

Example: when a teachers gives instructions to the students regarding an assignment, it is an example of vertical formal communication. 

• Horizontal Communication:

Horizontal communication is seen taking place between people working at the same level in an organisation. Employees or functional managers working at the same level engage in horizontal communication. Communication between two students in a college meeting can also be categorised as horizontal communication.

Example: communication between two employees that are working on a presentation together is an example of horizontal communication.

Formal communication comes with a set of advantages that allow communication in any official organisation to flow effectively. Some of the advantages are:

• Maintenance of discipline and authority in an organisation is made easier through systematic formal communication.
• There is an orderly flow of information in the organisation as formal communication takes a definite route in the organisation. 
• It is extremely easy for anybody in the organisation to trace the source of the information. 
• All forms of written formal communication like letters, emails and reports are kept permanently and is helpful for future decision making.   

Apart from the organisational setup, formal communication also takes center stage in an academic organisation like a college. Formal communication takes place between the teacher and the students, between two or more teachers, between management and the teachers and so on. From a student's perspective classroom activities help hone his/her formal communication skills immensely. Classroom activities involve multiple interactions between the students as well as interactions between the student and the teacher. These interactions help build the personality of the student and as personality and body language of a person matter to a great extent in formal communication, these classroom interactions are a boon for the students. Classroom interactions also help students develop a good active vocabulary, without which formal communication would not be effective. Being a student myself, I'm able to develop a better vocabulary and a more confident personality by interacting my fellow students and teachers during classroom activities.

The important aspect about classroom activities is perhaps the art of delivering presentations. Presentations are formal in nature and require the student to put in a lot of efforts. The student is expected to research and put together an interesting presentation. The student is then expected to communicate to the whole formally and deliver the presentation. This process prepares the student for his/her work life and helps develop good formal communication skills. Presenting in class has allowed me personally, to develop confidence and learn to use good vocabulary to ensure that I sound formal during the presentation.

 Classroom activities also involve a lot of writing and since writing is an integral aspect of formal communication, these activities help students gain a better understanding of formal communication. Classroom activities have helped me learn how to write formal letters, emails and resumes. These are extremely crucial skills that are necessary to work in any industry.

Classroom activities involve a lot of interactions between the teacher and the students. These interactions help students understand how formal organisations work and how hierarchy in any given organisation works. Taking instructions and inputs from teachers for assignment purposes has helped me understand how instructions are given in any workplace. Writing formal letters to the dean as well as the teachers seeking permission for leave, communicating with teachers formally via email, writing travelogues in class  are activities that have helped me develop better communication skills.

Classroom activities help students articulate their thoughts, develop a more confident personality, understand the various channels of communication, develop a good vocabulary and develop a positive body language.They are therefore, extremely crucial for the overall development of any student.

Taking the scenic route...

My most memorable recollection of a travel story is probably the first time I traveled alone. I was in seventh grade and the beginning of my summer holidays had me buzzing with excitement. I could not wait to meet all my eleven cousins and goof around. But unlike every year, this time my family did not get together in my house and instead decided to meet in my uncle’s place in Kolar. This was great news to me as I had never visited the place before but the not so great news came to me the very next day when my parents told me that they had to travel to Shivmoga and could not take me to Kolar. But I was one tough cookie and there was no way I was missing out on the get together. And so after three days of dealing with my angry outbursts and tantrums, my parents agreed to let me travel to Kolar, in a train, alone.

         I remember feeling ecstatic and just a little bit nervous while boarding the train but the journey that followed took all my worries away. When you’re alone you pay close attention to every little detail around you. I remember not sleeping a wink on the four-hour train ride. My vision was mostly clouded by a sea of green every time I looked outside the window.  Kolar was indeed a beautiful place. It was a weird concoction of greenery and contrasting barren lands. The train ride was bliss. I vaguely remember my uncle’s driver picking me up from the railway station and I was beaming at the man. I felt accomplished.

     Robertsonpet is a small town in Kolar district and in it you will find a world full of peculiar details. Technically, Kolar is a part of Karnataka and so you would naturally expect the folk to speak Kannada but in reality, it is an extremely difficult task to even hire an auto rickshaw without conversing with the man in Tamil. In the four days that I spent in Kolar,  I realized that my uncle was nothing short of a celebrity in the small town. Being a rich man with a big wine store, he was held high in the community. This fact could also be attributed to the fact that the entire town of Robertsonpet is smaller than HSR Layout. The town had one mall, one small movie theater, one breakfast point, one hospital, a few temples and a few churches. The community here was so closely knit that the entire town visited my uncle’s place on the occasion of his house-warming party. The fact that there exists a world so different, with different people and different cultures in such a small geographic area is mind-boggling.

This little trip gave me so much happiness. It showed me a few different facets of human society and made me feel accomplished and will always be a cherished memory.

Juliet Capulet's most daunting question!

The Name Game:

"What's in a name? That which we call a rose by any other name would smell as sweet." This has got to be one of Shakespeare's most famous quotes that beautifully encapsulates the central struggle of the play - Romeo and Juliet. 

Centuries after this quote was penned down, it still continues to hold significance and  forces us to put our thinking caps on. What does a name really signify? Does a person's name matter? Is there a connection between someone's name and his/her personality? Can a person's name influence his/her personality? These are just some of the questions that I have pondered upon in the last few days. 

The basic understanding of semiotics would help us understand the relationship between words and their meanings. But learning and using a word entails more than just associating meaning to it. It involves a process of linking a network of ideas and emotions to the word. The reason I'm bringing this up is because names are words too and every name evokes within us a set of ideas and emotions. 

We use these preconceived ideas and emotions to form a judgement about a person's character and personality, merely based on his/her name.

My name is Deepti, which means "the last ray of hope when all hope is lost". My father named me and says that I have always been his ray of hope. He also wanted to give me a short name that wouldn't give much room to 'weird nicknames'. My name is a common Hindu feminine name and it is because of this commonality that people are very accepting of me from the get go. The name is familiar and comforting. And for the longest time this acceptance made it easy for me to be accepting of my name.

The meaning of my name does to a certain extent align with my personality and has also influenced it in many ways. I have always carried a sense of responsibility with me because of the expectations  my family had from me. I have been convinced for as long as I can remember that I would make my family proud and be an achiever. I did manage to achieve a few things related to public speaking and my academics. My name is a source of motivation to me and it keeps me going. 

My problem arises not from the meaning of my name but from the sound of it. It's soft and a tad bit too feminine for my liking. My personality on the other hand is loud and dynamic. I'm opinionated and straight forward. Although I'm a firm believer of the fact that the concept of 'femininity' is a social construct, this very construct combined with my petite physique, makes people associate a set of attributes to me that certainly opposes my actual personality. Their assumptions of course turn to dust once they interact with me.

Analyzing my feelings has helped me understand that my problems arise from what other people take away from my name and not from what it means to me. This is simply because people form an image of another person based on his/her name when they first interact and it is the most human thing to do. Surnames also form a crucial element of judgement in this context. In a country like India, surnames give away the caste, language and religion of a person very easily. My surname - Nickam - is a dead giveaway. It reveals that I'm a Hindu and that I'm a Marathi. These elements, combined with the existing stereotypes in our society contribute to the image that a person forms about me. 

Understanding and respecting this power of a name is crucial, especially in the field of marketing. The name of a brand can make or break a deal. If the name of a brand aligns with its personality and the service that it is offering, it is more likely that a consumer would associate positive connotations to the brand name. 

Sorry Juliet, there's a lot in a name.

Communication: The Essence of Being Human

Communication: The Essence of Being Human

" The single biggest problem in communication is the illusion that it has taken place."

                                                                                          - George Bernard Shaw

Communication, a seemingly basic and simple process, has many layers of significance attached to it. It is an innate part of human existence and forms a pathway to intimate relationships, community, society and mutual understanding among human beings. It is thus crucial for us to understand the different types of communication and the possible barriers that obstruct the path of effective communication. 

When participants engage in the process of communication, they intend to reach a mutual understanding by means of exchanging ideas, thoughts, information and emotions through signs, gestures, speech, written word and so on. Communication is of two basic types - verbal and non-verbal communication. 

Verbal Communication:

Verbal communication is the form of communication that relies on speech and words for the transfer of messages between the sender and the receiver. This form of communication is further divided into two types, namely- oral communication and written communication.

a. Oral Communication:

Oral communication deals with the exchange of messages between the sender and the receiver by means of speech. Examples for oral communication include telephonic conversations, seminars, presentations and so on.

b. Written Communication:

Written communication deals with the exchange of messages between the sender and the receiver by  means of written words. Examples for written communication include letters, books, billboards, newspapers and so on.

Non-Verbal Communication:

Non-verbal communication is a form of communication that relies on wordless cues,signs, gestures, body language (kinesics), proximity (proxemics),touch (haptics) and so on for the transfer of messages between the sender and the receiver. 

It is extremely crucial to understand that communication is a two way process. The effectiveness of communication is not only determined by the message sent by the sender but also by the feedback given by the receiver who interprets the message. This aspect of communication makes it a dynamic process and makes room for various barriers and obstacles at the same time.

Communication Barriers:

Communication barriers are obstacles that arise in the process of communication that either retard or distort the meaning of the message sent by the sender to the receiver. This hinders the effectiveness and the intended impact of the message. Communication barriers are of the following types:

a. Physical Barriers:

Physical barriers are the natural and environmental conditions that act as a barrier to effective communication between the sender and the receiver. They occur due to factors such as noise, technical glitches, weather conditions, time, distance and so on.

Example:  If two friends are conversing in a club, the loud music in the place can hinder the effectiveness of their communication. 

b. Emotional Barriers:

Emotional barriers are mental blocks that impede the way a person communicates to another person. Emotions such as anger, frustration, anxiety and so on can hinder the message immensely.

Example: A person who is proud of his/her perspective may not pay any heed to the perspectives of another person and this pride forms an emotional barrier.

c. Cultural Barriers:

Social behavior, social conditioning, traditions, rituals, art, music, architecture and many other aspects collectively form the basis for a person's culture. The cultural diversity that exists among people results in cultural barriers that make communication difficult.

Example: The ' thumbs-up' sign is taken as a sign of approval in many countries but in countries such as Bangladesh and Thailand, it is considered to be a very obscene and offensive sign. This cultural diversity can cause many communication barriers. 

d. Perceptual Barriers:

Perceptual barriers are internal in nature and depend upon the different perceptions of the people communicating with one another. They influence the interpretation of the messages received as well as the way a person delivers his/her message to another person. 

Example: If you go into a conversation with the perception that the other person is not going to understand your message, you might employ language that is dismissive and this would in turn effects the quality of communication. 

e. Language Barriers:

These are probably the most common communication barriers that cause misunderstanding between people. Language is integral to communication and without a mutual language, it is very difficult for two people to communicate. Aspects such as slang, grammar, accents and so on form language barriers. 

Example: A Scottish man and a British woman would find it difficult to communicate because of the different accents they employ while talking English. 

f. Gender Barriers:

Men and women have assigned roles in society. These assumed gender roles and societal stereotypes can give rise to many communication barriers. Although not all men and women communicate the same way, there are certain traits that are common to one gender.

Example: If a woman is not allowed to state her opinion at her workplace because of a gender bias, it gives rise to communication barriers. 

g. Interpersonal Barriers:

Interpersonal barriers are extremely individualistic in nature. A person's nature in itself can become a communication barrier due to preconceived notions, ideologies, personality issues and so on.

Example: If a person exhibits absolutely no desire to communicate, it becomes a major hurdle in the process of effective communication.   

The understanding of the different types of communication and the possible barriers to the process of communication is crucial for every individual as it enables him/her to become a better communicator. 

Nothing haunts us like the things we didn't buy!

The Shopaholic Fever: What Kind of a Shopper are You??

I'm going to start this blog post with a confession, I'm a full-fledged shopaholic! You can call me vain, conceited, self-absorbed even, but that's not going to affect the happiness I draw from shopping. Online shopping is booming in India and according to studies conducted by Statista, a statistics portal, close to 329.1 million Indians are expected to shop online by the year 2020. This development translates into a greater convenience for shopaholics like me. With online portals becoming so important for the processes of marketing and selling, it becomes crucial for us to understand the different personas online consumers assume while shopping. 

Online shoppers display different types of personalities while indulging in this guilty pleasure. I'm starting off by analyzing my own online shopping behavior and scrutinizing some of the personalities that I assume while shopping.

The Wish lister:

A wish lister is someone who wants it all! This person fantasizes about owning all that he/ she sets his/her eyes upon. I most definitely fall into this category. Regardless of the fact that I'm shopping for just one dress, I find myself adding more than a dozen dresses to my shopping cart. I spend days adding and removing these dresses to and from my cart until I finally settle for one. I find myself doing this more often during a sale. I'll admit, this behavior is most probably a result of my choosiness and greed.

The Rational Visitor:

A rational visitor is someone who treats a shopping experience as a calculated decision. He/She needs as much information regarding the product as possible in order to make a buying decision. I have come to realize that my behavior as an online shopper also largely depends on the product that I'm shopping for. While shopping for electronic goods I definitely fall into this behavioral category. I recently bought a mobile phone after a month of rigorous research about the brand and the various costumer reviews regarding the phone. I'm not sure if the motivator behind this move was the fact that it was a big purchase or the fact that I bought the phone with my own pocket money. 

The Maximizer:

A maximizer is someone who wants to simply make the best choice. He/She will not buy a product unless they are sure that they have arrived at the best choice. I contemplate for days about the worthiness and the usefulness of the product that I wish to buy. I compare products and even wait for seasonal sales to get better deals on the products I desire to buy. I have exhibited this behavior while making purchases across product categories and can proudly say that I'm a careful buyer.

While I easily associate with these costumer behaviors, there are some personalities that I personally do not associate with, such as that of a brand-oriented visitor. A brand-oriented visitor is someone who is brand-loyal and someone who makes a purchase solely for the sake of the brand. I'm someone who does not buy products simply for the sake of the brand name. I'm also someone who does not blindly follow fashion trends. I buy products based on their features and utility. 

The other behavioral categories I do not associate with are that of a satisfier and a hesitator. These categories represent people who belong to two extremes. A satisfier is someone who is satisfied with the first product he/she adds to the shopping cart whereas, a hesitator is someone who is skeptical about his/her purchase even at the stage of checking-out. I definitely do not associate with these extremes. I'm a secure shopper who is confident about her purchase and also a rational shopper who contemplates her choices thoroughly before buying.

Its safe to say that these consumer behaviors have a great impact on the success of marketing or selling of a product and these behaviors should be closely analysed for the success of any marketing effort.

the non-buyer avatars!

The Tale of Non-Buying Consumer Behaviors:-

" Consumers no longer want a great product, they want to buy products from companies that align with their own character and values." - Muhtar Kent ( former CEO of The Coca-Cola Company).

Over the past few weeks I have attempted to understand what really goes into the process of buying and selling of a product and the above quote resonates with me now more than ever. The process of buying revolves around the psyche of the costumer. It is often affected by many factors such as emotional factors, social factors, economics factors, personal preferences and so on. The non-buying process on the other hand is just as complex and humanized as the former. Analyzing this process has interestingly allowed me to shift gears and look at the process of marketing from a buyer's point of view. Its fascinating to see how the choice to not buy something can also stem from a variety of character traits, traits that I personally relate to. These character traits are categorized and discussed as follows:-

The Complainer:-

Complainers can be both meek as well as aggressive but regardless of the intensity of their complaints, they never really buy the product. They would most likely be involved in a one sided wrangle about why and how a product is substandard. I specifically remember the afternoon I spent at my aunt's house when a representative from the company IRobot had come over to give her a demonstration of their vacuuming robot. Regardless of what the man said, I was adamant about my negative opinion of the product. I kept complaining about the fact that the device could not clean close corners in the house and eventually, much to the man's dismay, made sure that my aunt did not buy the device. 

The Overly Agreeable Costumer:-

This costumer's opinion is easily swayed by whatever the seller says but this does not necessarily translate into an act of buying. The incident I recall while thinking of this scenario is definitely relatable to every girl who has ever gone on a cosmetics shopping spree in a mall. I'm guilty of trying every single cosmetic brand at the Nykaa Luxe Store, on the advise of the beauty experts there, with absolutely no intention of buying any of the cosmetics I was readily trying on. All I was concerned about was the fact that there were people doing my makeup, for free.

The Expert:-

I take keen interest in local cosmetics as well as beauty brands that are a global success and I think I fit into the category of an expert costumer. The difference in the pricing of local cosmetic brands and global brands is unnerving. I'm often able to find drug store counterparts to high end beauty products and thus avoid spending lavishly on brands such as Fenti Beauty, Victoria's Secret and so on. My 'expertise' allows me to think rationally and not trade my kidney for a lipstick.

The Pessimist:-

Although I'd like to believe that I have a very optimistic view on various aspects of life, this has got to be the one character trait I relate to the most. I'm extremely pessimistic about products that I don't believe in. More often than not, these products belong to brands that cater to the 'elite' strata of the society. Brands like Harley Davidson, Victoria's Secret, Apple, Fenti Beauty and so on appeal to the elite division of the society and have managed to project themselves as an extension of elitism. I personally do not understand the concept of trading one's arms and legs in order to own a phone and would rather buy a cheaper phone, with my locomotory organs intact.

The Staller:-

We've all been there and we've all done that. It is not uncommon to see someone stalling to do something or take some action. I'm no different. Unless there is some compulsion, its a struggle for me to buy a particular product without stalling. I recall an incident from the guitar classes that I took in my ninth grade summer break. My teacher told me it would be great if I could upgrade to a better guitar to perfect my chords. He of course added that the decision was mine to make. The fact that I had the choice had me stalling for months until I eventually quit the classes all together.

These character traits and their implications in the non-buying process exhibited by a costumer go on to show how the selling of a product is not entirely in the hands of the seller but is also influenced by factors associated with the customer. 

What sells? and why?

Humanization of Marketing:

For the last few days I have spent quite a few hours trying to think about why and how people end up buying products or services. I specifically recall this one night in January of 2017. Dinner was served early, the alarm was set and I was in bed by 10 PM. You must be wondering, Why all this preparation? Well, the goal was to wake up at exactly 12 AM in the morning and shop on Myntra!

 Now before you judge me as someone who is vain and has weird priorities, let me put this incident into context. 

For weeks in December of 2016, the advertisements for Myntra's 'End of Reason Sale' kept surfacing on all kinds of media. There were advertisements on the television, in the newspaper, on different websites and on social media. Celebrities such as Hrithik Roshan, P.V. Sindhu, Yuvraj Singh and so many others were endorsing the sale and asking people to 'get ready for the big sale!'. There was a sense of urgency and the sale was for just two days! 

Due the constant exposure to these advertisements and the hype that was created around the sale, I fell prey to it and hence the preparation. According to an article by Economic Times, Myntra's revenues showed a startling 160% growth and more than 2 million app downloads following the sale. This means that there were lots of people who set their alarms to 12 AM that day and this certainly made me feel better about my reaction. 

This example raises a few questions such as what really sells? and why? Marketing is indeed vested in the ways a human being thinks or functions. Its a reflection of human instincts that compels human beings to act. It revolves around consumer behavior and questions such as - What does the consumer want? What appeals to the consumer? How does the consumer react to different advertisement campaigns? What drives a consumer to shop? and so on.

With the availability of so many choices in the market, it is crucial for any product or brand to connect with consumers for it's success. Products should cater to the needs of the consumers and brands should possess personalities that reflect the personalities of the consumers themselves. All of this is made possible by the manifestation of basic human instincts in marketing. Kama (lust), Krodha (anger), Lobha (greed), Moha (emotional attachment),Mada (ego) and Matsarya (envy) are all negative human instincts. Sathya (truth), Dharma (righteousness), Shanti (peace), Prema (love) and Ahimsa (non-violence) are the positive human instincts.

Advertisements for products such as deodorants and condoms thrive on the aspect of lust and desire in human beings. These products are marketed as a means for people to satisfy their desires. Axe, the successful men's deodorant brand created a personality for itself. It in many ways defined masculinity and compelled it's consumers to believe that it is integral to their own masculinity. The product was portrayed as a weapon for seduction.

Anger is another strong instinct that has the ability to get people to act fast. Many advertisement campaigns have managed to capitalize on this instinct. Tata Tea's ' Jago Re' campaign raised many social issues through a series of advertisements that made viewers angry and compelled them to think. They also presented timely and strategic advertisements about women's safety following the Nirbhaya rape case.

Greed is an instinct that drives marketing. It is through this instinct that brands are able to sell their products to consumers who don't really need them. Products are packaged and presented in ways that give rise to greed in consumers. By presenting attractive discounts and showcasing the scarcity of a product, a consumer's greed is fueled. My reaction to Myntra's End of Reason Sale was definitely due to these very reasons. 

Envy and ego are again powerful instincts that are often used in marketing to make products attractive to consumers. Many products solely depend on these two instincts for their success. Products are made to appear as symbols of prestige. This gives rise to envy in the consumers and on possession of the product gives rise to ego. Bikes by Harley Davidson and products by Apple depend on these very instincts for sales.

Emotional attachment and love are similar instincts. However, the former has a negative connotation and the latter has a positive connotation. Products that bank upon the former instinct use the fear that human beings have towards loosing things and people they love as a tool of marketing. A good example for this would be Max Insurance's ' Second Chance' campaign that showed stories of people who had close encounters with death. Products that use the instinct of love on the other hand tend to present a positive outlook on human emotions. An example of this would be the award winning SBI's 'Great Dad campaign' that portrays the love between an army officer and his son. Surrogate advertisements for products like alcohol depend on human emotions and various social causes to sell their products.

Truth and righteousness are two positive instincts that go hand in hand. Some brands choose to be honest with their consumers and build a reputation for being trust worthy. It is also crucial for a product to deliver on it's promise for the consumer to believe in it. Maybelline's beauty products claim to be non-comedogenic and always have all their ingredients printed on the back of their products to prove their claim.

Peace and non-violence are ideas presented in advertisements that help promote the cause of NGOs and also help people identify with products for their initiatives. A good example for this would be an advertisement by Amnesty International that spoke about domestic violence against women. 

It is thus fascinating to see the manifestation of human instincts in marketing. This goes on to show that marketing is indeed a humanized process.

When Maslow met Marketing!

Interpretation of Maslow's Hierarchy of Needs in Marketing:

I'm fairly new to the concepts of both psychology as well as marketing and I stumbled upon a very interesting perspective of these concepts while doing some reading. " Marketing is like commercially applied psychology", says Social Media Marketer, Dylan Lee. This statement at first seemed quiet far fetched to me but as I kept reading about the interpretation of various psychological theories in marketing techniques, I started to draw parallels between the two fields. 

Maslow's Hierarchy of Needs is a theory that has found wide spread acceptance and application in the field of marketing. Abraham Maslow, the man behind this famous theory attempts to categorize and explain the nature of human needs and desires. This theory is usually represented in the form of a pyramid that shows the different stages of human needs.The connection between this theory and marketing is very simple.If a product or a service manages to attract a costumer, the costumer is encouraged to fulfill his/her needs by purchasing the product or the service.  

  

Maslow's Hierarchy of Needs states that human needs can be divided into five categories that are derived from human emotions and tendencies. The five categories of needs are defined as follows:-

1. Psychological Needs:

Psychological needs are categorized as the most basic needs such as food, clothing and water that human beings need to survive. Some of the products I relate to in this category are as follows:

(a) Aquagaurd Water Purifier: 

   

 Aquagaurd created demand for it's product by creating awareness about the need for water purification and other health related concerns. It made people switch from their ordinary steel filters to Aquagaurd. This product is trusted by many and has been in my house for as long as I can remember. The Product promises to provide water that has added minerals and water that is completely safe for consumption.

(b) Swiggy:

Swiggy, an instant food delivery app, is my absolute favorite. This app makes receiving food at my doorstep extremely cost efficient and convenient. This app also gives it's costumers exclusive deals and discounts. People have turned to Swiggy to order food from their favorite restaurants. Swiggy's   

advertisements show people of different genders and age groups using the app and are very appealing.

(c) Flyrobe:

Flyrobe is a very unique app that allows it's costumers to rent designer outfits for a few days at a very affordable price. I have used this app multiple times to rent designer outfits for special occasions. This app essentially gives it's costumers the opportunity to wear expensive designer clothing for various occasions.

2. Safety Needs:

Safety needs occupy the second level in the hierarchy. They address needs that are concerned with a person's safety and health. The products that I relate to in this category are as follows:

(a) Birla Health Insurance:

A health insurance is an absolute must in today's times and Birla has grown to become a very well reputed brand. Their advertisements effectively target the emotions and the fear of costumers and create awareness regarding the importance of the insurance.

(b) Godrej Home Security System:

Godrej's security systems provide peace of mind to costumers who worry about the safety of their loved ones and their homes. This system gives my family a sense of security as it protects against theft and other crimes. These systems are both wired as well as wireless and have unique features such as cameras with analytics, substance detectors and so on.

(c) Odomos Mosquito Repellent Cream:

With the significant rise in the number of deaths caused by diseases such as malaria, Odomos, a mosquito repellent cream has become very popular. I personally use this product because of the simple fact that it works. The product is also available in a variant that is suitable even for infants.

3.  Love/ Belonging Needs:

These needs are derived from the interpersonal relationships and emotions of human beings. These needs stem out of intimacy and friendship. Some of the products that I relate to in this category are as follows:

(a) Facebook:

Facebook, an American social media networking service company has changed the way humans communicate in the 21st century. Along with other social media networking sites, Facebook allows users to connect and interact virtually and has provided a substitute for physical intimacy and affection. I use Facebook to keep my friends updated about my whereabouts and vice versa. 

(b) Starbucks:

Brands sometimes become so important to people that they start identifying with the brands and form loyal brand communities. Starbucks is one such brand that has an enormous community. This community goes on to fulfill the emotional and intimate needs of consumers.

(c) Amazon:

Amazon, one of the biggest online shopping websites in the world, advertises itself as a one stop shop for the needs of the entire family. It upholds the importance of family bonding in advertisements that promote it's various new devices such as the Amazon fire stick. This appeals to the emotions of the costumers.

4. Esteem Needs:

Esteem needs stem from a human's want for attention, status, recognition and strength. Some of the products that I relate to in this category are as follows:

(a) Iphone:

Most of Apple's products indicate the status of their owners. Because of the way Apple has marketed it's products, their phones and laptops are considered to be a symbol of prestige and honor. The status that comes along with owning a very expensive Iphone, appeals to the esteem needs of a costumer.

(b) Fitbit:

  

Fitbits are very sophisticated fitness watches. Today, the concepts of health, dieting, yoga and so on are considered to be ' cool ' and this enables an expensive Fitbit to be a sophisticated symbol of status and esteem.

(c) Ferrari:

A Ferrari car is a symbol of strength, speed and prestige. It allows the costumer to feel a surge of esteem, when he/she drives the beautiful machine. Ferrari provides stylish cars that have excellent performance on the road. Ferrari is also a company that is very strict about it's licensing and only associates itself with big, international brands in order to maintain its market value.

6. Self - Actualization Needs: 

Self-Actualization deals with realization of an individual's full potential.In other words, these needs arise out of a person's self realization. It is extremely difficult for a product to reflect the entire identity of a costumer. Some products and brands that have managed to address these needs are as follows:

(a) Nike:

Nike launched a very successful advertisement campaign with a tagline that said 'Just Do It'. This campaign motivated the costumers to push through physical challenges and attain physical self actualization. The advertisement campaign promoted the brand as a whole and appealed to the costumers.

(b) Swatch Bharat Campaign:

The Swatch Bharat Campaign launched by the Indian government appealed to the self-actualization needs of the people and made them want to contribute proactively to keep their surroundings clean. The campaign was propagated as an extension of Mahatma Gandhi's principles and was a success.

Maslow's Hierarchy of Needs thus has great implications in the field of marketing and it's understanding is extremely crucial to execute the art of selling.

The Maggi Madness

Macro Factors That Influence Maggi's Instant Noodles

   - July 15, 2018

In an average Indian household today, the terms ' instant noodles ' and ' Maggi ' are synonymous.

This phenomenon certainly did not take place over night. The history of the now nestle-owned Maggi noodles is testimony to its own success as a product. The company that originated in Switzerland in 1884, under the directorship of Julius Maggi soon grew to become a pioneer in food production with its seasonings, bouillon cubes and instant noodles. In 1947, another Swiss transnational food company Nestle, took over Maggi and piloted the brand to new heights of success.

the bouillon cubes manufactured by Maggi that act as meat substitutes

It is crucial to assimilate the meaning of ' macro factors ' before understanding their influence on Maggi noodles. Macro factors are uncontrollable factors that are beyond the direct influence and control of a company. These factors come into contact with a company in the course of its functions and need to all work in favor of the company for its success. These macro factors and their influence on Maggi noodles are explained below:

1. Demographic Factors:

Demographics are traits that are used to determine consumer behavior and target consumers. Determining these factors will help maximize a company's profits. Maggi in India for example was launched in 1982, when the idea of instant food was non-existent. Its captivating two-minute tagline, and its 'Taste Bhi Health Bhi' campaign helped establish it as a convenient fast food. Maggi first targeted working women through their campaigns. This strategy did not work and after conducting surveys and studies, the company targeted children as its primary consumers. These strategies and the lack of competition contributed to its enormous success.

2. Economic Factors:

Regardless of the success of a company's strategy, it cannot afford to overlook economic circumstances such as inflation, demand, supply, recession and so on.These factors directly influence the profit margins of a company. Maggi noodles are extremely popular in countries such as India, Pakistan, Malaysia and Singapore and is directly impacted by the economic circumstances in these countries. Maggi has managed to price its noodles in accordance with the income of its target consumers and this has led to its success as a product. Maggi also managed to overcome the decline in its sales that took place in 1990 by changing its formula from fried base to oil-dried base for a better taste experience.

3. Natural Factors:

There are various natural factors that influence the success of a product such as natural disasters, climate change, lack of raw materials, access to waterways and other environmental concerns. 

Maggi noodles for example, has a 32% market share in Malaysia and will directly be affected by any natural calamity that takes place in the country and this could hinder the production of the product.

4.Technological Factors:

Technological developments have played a key role in the way products have been marketed and sold to consumers. Maggi has effectively used different forms of media to promote its noodles and also delivers it to its consumers using both online platforms as well as retail markets. From being a sponsor for 'Hum Log', a popular serial on Doordarshan in 1984 to launching a wide spread campaign called 'Main Aur Meri Maggi" to celebrate 25 years of success, Maggi has come a long way in India

.

5. Political Factors:

Political factors such as government regulations play a very important role in the success of a product. It is crucial for a product to adhere to the rules of food regulatory bodies of a country. In May 2015, Food Safety Regulators in Barabanki, Uttar Pradesh found Maggi noodles to contain MSG as well as a high quantity of lead. This led to the subsequent ban of Maggi noodles in various Indian states such as Gujarat, Andhra Pradesh, Assam, New Delhi and so on. This ban caused Nestle to recall stock that was approximately worth 320 crores in Indian Rupee. The ban was later struck down by the Mumbai High Court on 13th of July, 2015. Following this, Maggi launched aggressive campaigns such as the ' We Miss You Too" campaign to make a comeback into the market.

6. Cultural Factors:

The culture of every country is different and a product should reflect the culture of the targeted region in order to be successful. Maggi noodles has successfully imbibed the culture of India. Its many variants such as  Masala Maggi, Atta Noodles and so on reflect the food culture of India. The noodles sold in India are purely vegetarian, unlike the Maggi noodles sold in other countries. This also shows the affect of culture on the product itself. 

All these macro factors collectively affect the success of a product or a brand and Maggi noodles certainly still has most of these factors working in its favor.

Reference Links:

https://www.slideshare.net/probikersagar/brand-study-maggi

https://en.wikipedia.org/wiki/Maggi#cite_note-34

http://marketingdawn.com/pestle-analysis-of-maggi/

https://www.maggime.com/en/about-us

http://merofact.blogspot.com/2015/05/doubts-over-msg-and-lead-content-in.html

https://www.patrika.com/news/miscellenous-india/supreme-court-denies-to-give-clean-chit-to-maggie-orders-to-re-test-1159819/