About Horizon- The Marketing Club

...Where two thoughts meet

HORIZON- The marketing club was started by
CUIM batch 2008-10. The major objective of the
club is to carry out various marketing related ac-
tivities that can add more value in the practical
life of students. The faculty incharge of the club
is Prof. Kshetragna.CN

01 MARKET FLASH
The latest marketing news bits from around the world
02 LAUNCH PAD
The new products in the market that you should watch out for.
03 PAGE 3
Chill your eyes
04 BIG IDEAS_ENTREPRENEURIAL STREAK
Short stories of students who are creating their own destiny
05 AUGMENTED REALITY
06 BUDDING VOICE
Marketing Grows Younger
07 AD-REVIEW
Dissecting the Ad
08 MARKET ANALYSIS
Knowing specific markets
09 MARKETING MANTRAS
10 MARKETING QUIZ
11 SENIOR SPEAK
12 CASE STUDY
A competition for all to crack the case and win a prize
 MARKET FLASH
Mahindra to ‘Rise’ for a new brand positioning
Were Marketing teaches us the importance of Brand positioning; the corporate practice
the same to set an example of their voyage to success. Homegrown farm equipment-to-
software group Mahindra & Mahindra is the one ,who has adapted the strategy lately.
Keeping with its global ambition, it will embark on a new brand positioning to project a
singular voice for various entities under its umbrella. The idea behind the move is to com-
municate with one brand voice, one face and one ‘Mahindra’ core purpose.
The company is investing Rs. 120 crore over 3 years, in activities related to promotion
of the new brand position-“RISE”.
“For Mahindra, ‘Rise’ means achieving world class standards in everything we do, setting new benchmarks of excellence and
conquering tough global markets,” M&M Vice- Chairman and Managing Director Anand Mahindra said in a statement.
The $7.1 billion group had hired New York-based advertising agency “Strawberry Frog” two years back to create the new
brand positioning.
Well, stakeholders as well as shareholders are eager to watch the result.

Airtel 3G finally comes to Bangalore

Airtel has also joined the League of 3G providers. Bharti Airtel Ltd has launched its Third
Generation (3G) mobile phone services in Bangalore and Chennai.
The most awaited service has been successfully launched in Bangalore on Monday, the com-
pany also expects to offer 3G services in 40 cities by March across all of its 13 licensed areas,
and expand the services to 1,500 cities and towns within a year.
The plans offered to customers has been made with a mindset that every new service brings
a new experience for customers. The tariff plan is divided among light users and heavy users
of data.
Time-based plans will be available for light users of data and the usage and billing will be by
hour. Flexi-shield plans for heavy users of data, where usage and billing will be capped.
Airtel is the third private network to launch 3G services in India, after Reliance Communica-
tions and Tata Teleservices. The two state-owned networks, BSNL and MTNL had launched their 3G networks before the
private licenses were auctioned off.

India’s first Triple GSM phone ‘Trio’

Akai India, the largest Japanese consumer electronic brand has launched India’s first triple SIM, triple standby (GSM+GSM
+GSM) phone t with multimedia features at affordable price tag of Rs. 3295/-.
This concept has been ideated keeping in mind the conventional user who wants the utility of multiple connections without
getting burdened with multiple handsets.

According to IDC figures, the Indian mobile market saw a unique trend of multi SIM phones capturing 38.5 per cent of the
market. Therefore, AKAI India is determined to establish itself in the Indian Mobile Handset space through the most experi-
enced and dedicated sales and product teams in the industry.

Wait Mat kar

The list of companies, which has realized” College going youngsters” as targeted segment is adding up rapidly. Companies
like Pepsi and Mtv introducing the concept “youngistan” was a hit to bag the profit.

The new entrant is Sonata, India’s largest selling watch brand from the house of TATA, unveiled new variants from Sonata
Super Fibre, a range of waterproof, trendy and sporty looking watches from Sonata. Inspired from the insight that Indian
youth does not want to wait for time, to get ahead in life, the collection is an array of “strong, stylish & affordable” watches
targeted at “college-going” youngsters. Sonata SF’s tag line “Wait Mat Kar” re-
flects the urgency, impatience and go-getter attitude of the youth.

Priced between Rs. 275/- and Rs. 595/-, the 41 new variants of Sonata Super
Fiber watches will be available at all authorized Sonata dealers, “World of Titan”
showrooms and exclusive Sonata stores across the country.

1
 lAUNCH PAD
WD TV Live hub
Technical Specifications:
1. 1 terabyte (TB) storage
2. Full-HD 1080p media player
3. Two USB ports
4. Price: Rs. 9,999

On a digital drive!: The recently launched WD TV Live hub will not only
bring in a new experience in the WD TV family but will also give users the
freedom to play all their personal media on any screen back in their homes.
Thanks to HDMI 1.4, composite video & video output, it is compatible
with virtually all TV sets.

BMW X1
Technical Specifications:
1. 100 km/h in 8.3 seconds
2. Top speed: 205 km/hr
3. Mileage: 15.24 km/ltr
4. Price: Rs. 22,00,000 onwards
Do We Have A Market Leader?:BMW is all set to play the ‘badge’
game with the X1. Priced at an attractive tag of Rs. 22 Lakh, the
BMW brand will attract those in the uber and high brow group
who wished to combine luxury with an SUV experience. For
starters, it is the entry level model & the company has already got
more than a thousand bookings – and all this, before the launch!

Zippo Red Hot & Rockin

Technical Specifications:
1. Over 12 new designs
2. Price: Rs. 2,350

You better light it right: Admirable and relishing are the only words that perfectly de-
scribe the latest strong & bold designs in the Zippo Red Hot & Rockin’ Collection Light-
ers 2010 series. For Zippo fans, from realistic to retro to whimsical to bizarre, the latest
range from the cult brand qualifies on all fronts as a collectible item!

Harley Davidson SuperLow

Technical Specifications:
1. 883cc V-Twin engine
2. Low seat height
3. Price: Rs. 5,50,000
Cruise it the Harley way:Being the first CKD model coming out of
Harley Davidson’s Indian assembly lines, SuperLow carries com-
fort and ease of riding as its USP. The product gives pure pleasure
of motorcycling with balanced & responsive handling that helps
the rider glide through corners & uneven surfaces with smooth con-
fidence. It will certainly set the Indian luxury bike market on fire.

2
 PAGE 3
Perfect World Cup brand ambassador
Iconic Indian batsman Sachin Tendulkar, who is set to become only the second play-
er in the history of cricket to play six ODI World Cups, is named the official ambas-
sador of the event to be held in the sub-continent. Tendulkar will be called upon to
promote and support a variety of ICC initiatives for the tournament, which is the
third biggest sporting event in the world and will take place in Bangladesh, India and
Sri Lanka from February 19 to April 2, 2011.

Pure water with Irani

Kent RO Systems Ltd the pioneer of the revolutionary Mineral RO Technology has signed
Boman Irani as the new brand ambassador for its new product, KENT TAP GUARD.
In his new role of Kent Tap Guard’s brand ambassador, Boman Irani joins a well-known
list of Kent Ro’s Brand Ambassadors who over the years have included people like
Hema Mailini, Esha Deol and Aahana Deol.

Lux Babe!
In Bollywood, if an actress gets to star in a Yash Raj or a Rajshri film, that puts her straight into the top league.
Well, in the ad world, some brands do the same trick. For Bollywood actresses through the ages, Lux has been a
brand which they take pride in endorsing. After top league actresses the latest to join the Lux family is Ghajini
girl Asin. Looks like Asin, the new ‘Lux’ babe, has all the ‘lucks’ in the world!

Rehman endorses an ETIOS

Toyota Kirloskar Motor has signed up two-time Oscar winner A R Rahman as its brand ambassador for its upcom-
ing small car ‘Etios’. The car has been been specifically developed for the Indian markets. Commenting on the
signing up of Rahman, TKM Managing Director Hiroshi Nakagawa said: “There is a very strong connect between
the product and its brand ambassador, with both being, ‘global’, ‘innovative’, ‘reliable’, and a ‘class- above qual-
ity’.”

3
 bIG IDEAS
Entrepreneurial Streak
Money makes the world go around they say and I’m sure we all agree. Which one of us wouldn’t love the opportunity to
rake in the moolah and what better way to do so than by doing something you love? This month once again we bring you a
story of one of our own who has unleashed the entrepreneur within.

Nishanth Iyengar is a young dynamic entrepreneur with a passion for work. This Bangalorean at the age of 25 is the pro-
prietor of Print India which is into the business of printing, production management, PR, event photography and more.
We snatched a few moments of his time to bring you this interview as he patiently answered our questions while constantly
handling calls from his clients. But we promise you that this is Nishanth Iyengar at his candid best!

Q.How did you come up with the idea for Print India?
Nishanth: I knew that I wanted to do something on my own. Honestly speaking I was having a cup of coffee one day when
I was suddenly struck by this idea. This happened soon after my engineering and now it has been a year since I have been
running Print India

Q.Do you have any previous work experience?

Nishanth: I had a few years of work experience before I started my own venture. I worked for 4 years in a call centre and
then for 2 years I was into event management. I did my engineering while simultaneously working full time.

Q.What made you choose printing?

Nishanth: Printing has a lot of scope. I saw an opportunity where I could capitalise the market and so I went for it. Also I
had contacts in the industry and I knew I could deliver quality to my clients at reasonable rates.

Q.What kind of difficulties or hardships have you faced with respect to your venture?
Nishanth: One of the biggest difficulties I would say was the lack of capital. I started off with just Rs. 14. I used to contact
clients over the phone and offer my services initially. Also I did not have a lot of support from my family.
On a more personal level I feel that one of the biggest challenges to be faced is laziness. The biggest hurdle is not clients
but battling laziness.

Q.Would you say that Print India has grown since its inception
Nishanth: Definitely. Earlier we used to cater to only particular aspects of an event. Such as say sounds and lighting for stage
events. But now we handle the entire event covering everything from background music, lighting, photography, printing
material, PR etc. We expect to grow our business with time

Q.What is your take on CSR?

Nishanth: We feel that giving back to society is very important. We currently outsource all our work through print brokerage
and other forms of outsourcing. But where possible we try to consider the social aspect. For example, we try to source our
products from physically challenged people provided it makes good business sense. In the case of our NGO clients we only
charge them the basic cost incurred and no extra charges.

Q.Do you find it challenging to handle both work and studies at the same time?
Nishanth: Running your own venture and studying at the same time does add pressure. But I strongly believe that if God has
given you 24 hours in a day then you must make the most of it. When I’m working I focus completely on my work, but that
doesn’t mean I ignore my education. You just have to find the right balance between the two.

Q.What made you opt for an MBA?

Nishanth: It is always important to add value wherever you can. I was at a point where I felt that I needed to grow and learn
more. And let me tell you that the best part of being an entrepreneur is that once you work on your own you can never work
under anyone else. So I felt that an MBA would give me more learning as compared to working under someone else.

Q.What would you suggest to other students who may wish to start their own business?
Nishanth: I would say “take that leap of faith”. It’s all about the experience. Give it a try and see what wonders you can
achieve. Making money is not hard, as long as you have the determination and the capacity to get work done.

Q.Finally how would you describe Nishanth in 3 words?

Nishanth: Happy, Satisfied and Fulfilled!
Well that was Nishanth Iyengar for you. He believed he had it in him and took that leap of faith. Do you have it in you? Are
you ready to take a step in the direction of fulfilling your passion?

4
 BRANDING WITH
TECHNOLOGY
Augmented Reality (or AR for short) is where the virtual world meets and overlaps the real world. Computer generated
graphics (both 2D and 3D) seamlessly merge with real world imagery to give an experience the user has never had before.
AR presents a unique platform to showcase your latest product or service and let the viewer dive into your brand and play
with it in a uniquely interactive way. We use a number of technologies to bring this unique experience into the real world,
from live audiovisual feeds to face motion and gesture detection to even projection and live feedback!
The USP of AR is that it presents information in a uniquely contextual and interactive way by placing it directly and in real
time over the world we see around us. Any object, any surface or location in the real world can have seamless information
overlay on it at all times accessible to those who need it.
The first company to pioneer the AR in India is Trimensions Etaverse Development, an entrepreneur venture from NID,
to showcase the future of Brand Communication with the help of AR platform in India. AR can be used effectively in a
number of ways, from bringing the brand to the public eye in a unique way to actually helping people use things better via
simulation.
Imagine a print magazine that has ‘active’ content embedded within its articles- users can hold the magazine up to their
webcams and see videos and links directly related to articles. They could even vote on issues that are of direct interest to
them- this represents a huge change in the way one perceives print publication.
A customer can go through a section of a mall where the floor ripples under your feet as if you were walking on water or
a movie billboard on a street where you could book a ticket to the next film in the theatre nearest your location by holding
your phone up to it or a treasure hunt in your neighbourhood for real prizes which only needs a mobile phone and an app to
activate and use.
This can be accomplished in a great number of ways, from directly projecting information on to surfaces or having it over-
laid in a virtual world that is entered and interacted with through your mobile or computing device. Technologies used all
rely on existing platforms and hardware so there is a very high level of integration with existing paradigms possible.

5
 bUDDING VOICE
INVIGORATING INTRICACIES
It is all around… Just turn the heads and there it is! Ads, advertisements, of all sizes, shapes and colors… The
variety makes man confused in his choices and this through the ages increased the need for innovative methods of
marketing too. May be it was then that the ad makers understood the need, the requirement of a unique strategy.
Marketing evolved to be more than advertising and advertising grew out from its crude forms of showcasing the
product and its features, how much ever conspicuous.

A switch or a press on a remote can now show its spectators a wide range of ads; from cool and funky ads to ones
with serious tones of responsibility and duty. A search into their innovativeness would reveal astonishing, but,
fascinating facts about the drastic changes that ads have gone in the course in order to bring out the implications
as being telecasted or broadcasted. Scanning, a simple and lazy one will highlight the new, ever familiar entrant
into ad technology – relationship marketing – marketing using ads which talk about the vital emotions of longing
and liking in mankind…

Sneak peak! Yes! Banking sector- they have been playing with deep bond-
ed roots of love and loss for quite a long time. ICICI Bank as well as ICICI
Prudential may be the ones which ring the bell first. The old lady being
listened to by an enduring manager, well after the normal working hours of
the bank, talks not just about their CRM activities, but, even louder about
the values that present generation seems to lose- old age and subsequent
care taking. Family, parents and children, is a heaven where future should
be judiciously taken care of- as is the theme of ICICI Prudential- Jeete
Raho!

Ads can prick even the hardest of hearts. It need not be human relationships and
emotions all the time that can bring a tear to the eyes… Again, one of the most
wonderful execution of creative minds by banking segments, an innocent rela-
tionship in the ads of IDBI. Childhood is not just for man, but for animals too.
The cute, yet, thick relation between a young boy and an elephant calf which
is taken away to farther lands by the herd makes all the watching eyes lure for
solace until the little elephant returns to the boy for another game of football!
Despite conveying the idea of minor banking policies, the ad created such cav-
ernous impacts on its viewers although it never had the glamour or heaviness
like most others- Not just for the Big Boys! So true!

Poems and stories flow out from Nature. The songs of peace and
exquisiteness bring happiness immeasurable. Walking with Nature
and enjoying her tranquilizing secrets would craft memories for a life
time. India’s vast culture and hidden beauty has been flamboyantly
brought out by the makers of Incredible India… The ads and post-
ers leave the addressees spell bound! The blend of colors with bare
passion is so perfect that the pictures are viewed with awe. From the
darkest of forests to the shallowest of seas, the collages look bril-
liant… Is this really My India, the India that I have always known
and been in? Wow! Dazzling is the art, the art of revitalizing reality-
Athulya Bharat!

6
 aD-REVIEW
Sunfeast Yippie!!!

When I say Noodles, ‘Maggi’ comes in our mind that’s the kind of top of the mind dominance Nestle’s Brand
“Maggi” has created. But now the Rs 1,300-crore instant noodles market in India is in a state of war, with three
new players having thrown their hats in the ring over the last one year. Who will win the battle for the consumer’s
heart?

ITC launched Sunfeast Yippee! instant noodles in December 2010, But how will the latest entrant make its pres-
ence felt? The answer lies in the latest TVC of Yippie! This differentiates it on product attributes. Now that’s what
we call playing smart. ITC launched three TVC and each of the Ads displays product attribute which differentiates
it from the market leader ‘Maggi’.

The first Punishment TVC showcases that Yippie! comes in round stacks, as opposed to the usual rectangular ones
to ensure longer noodles strands, they depicted a kid questioning conventions based on these product attributes so
that people are compelled to rethink what instant noodles should be. Second Cricket TVC shows it resists clump-
ing when served, starring a kid who is in dilemma over playing the winning shot for his street cricket match and
eating noodles, and his Mom encourages him to play the shot as New Yippie! Noodles resist clumping even after
several minutes it’s served. And the third TVC with a kid in saloon, talks about having choices in Noodles too.
(Clearly targeting Maggi)

Of course, incumbent Maggi is not sitting idle. In 2010, it reinforced its emotional connect with consumers
through an interactive campaign. The task for ITC, therefore, will not be limited to fighting competition. Satisfy-
ing the demand of the consumer who loves to experiment will be a much bigger challenge. But for now the new
product positioning TVC of Yippie! Noodles have spiced up the noodle war.

Ad agency- O&M

Rating-

6 7
 Market analysis
MARKET ANALYSIS OF FACEBOOK
Social networking sites are online outlets used to form communities based around particular interests. For ex-
ample, Friendster started as a simple way to connect with friends, Myspace started around a focus on music,
LiveJournal around personal blogging, and Facebook around colleges and connecting with classmates.

Facebook has been around for a few years, but only recently has become the biggest and fastest growing online
social networking site. It was started in 2004 by a Harvard student as a way to connect with classmates and soon
expanded to open up its community with other universities in the United States. Until 2006 you had to have a valid
school email address to even join. This requirement would place members in a particular network for communi-
cating. For example, a student at UC Berkeley would be in the network called Berkeley. It would then be simple to
see what events and activities were going on in your community. In 2006 Facebook opened its doors to everyone
over the age of 13. At this point, the site really took off and no longer just focused on the college crowd.

WHAT IS THE CURRENT FACEBOOK AUDIENCE?

There are more than 160 million active users on Facebook and it’s growing every day. In the United States alone,
there are more than 45 million members. Of these, 25.5 million defined themselves as female and 19 million as
male. Your target audience is online, and on Facebook.

Here is the breakdown of those users that reported their age in the U.S.:
• 13-18 year-olds: 8.2 million
• 19-25 year olds: 16.6 million
• 26-35 year olds: 11.6 million
• 36-45 year olds: 4.8 million
• 46-55 year olds: 2 million
• 56-65 year olds: 1 million

Some other fun facts about U.S. users on Facebook:

• more than 5 million state they are college graduates
• more than 7.9 million state they are in college
• about 4.5 million people list California as home
• 98,000 members list the environment as an interest
• 171,000 list health as an interest
In May 2007 Facebook began allowing outside developers to create applications that interact with the core fea-
tures on Facebook. All applications must maintain the look and feel customized to Facebook settings using the
Facebook Markup Language.

By July of 2008, over 33,000 apps had been created. The most successful are ones that people find value in, such
as Causes where users can highlight and promote their favorite onprofits.
Unless you have a specific product that is highly desired by users, than plugging into an existing application such
as Causes, and creating a Page, Event and/or Group and keeping these updated with resources and new content is
a much more effective use of time and money by an organization.

ADVERTISEMENTS
Advertisements on Facebook were first allowed in November of 2007. They initially had an extremely low click-
through rate, but better placement and more directed marketing has put them on par with Google AdWords’ suc-
cess. You can choose to advertise a Page, Group, Event, or Application within Facebook or an outside web link,
such as your website or advocacy center, a donation page, etc.
The best way to advertise on Facebook is through word of mouth (free!) from your online friends or fans via their
actions and News Feed stories. Ads are less effective, but can help you spread the word even further by reaching
a larger audience.

With Facebook Ads, you choose the graphic and text of your ad, and select when Facebook shows it to your tar-
get users. A way that you can up your click through rate is by having Facebook add information about a viewers’
friends’ interactions with your Facebook Page

6
8
 MARKETING MANTRAS

Skimming

Pricing strategy usually used in the early stages of the product life cycle that targets a small number of consum-
ers who are willing to pay a relatively high price for the product. Over time, the price may be reduced to take
advantage of production economies of scale achieved by selling higher volumes.

Slice-of-life advertisement

Advertising-copy technique where a real life problem is presented in a dramatic situation and the item being
advertised becomes the solution to the problem. This advertising format is relied upon heavily by detergent
manufacturers.

Psychographics

The science and art of measuring and profiling consumer lifestyles.

Zero-price Advertising

It is a type of advertising practice, in which the advertised goods are marked up to finance the advertising. In
other words, the purchaser pays the cost of the advertising.

In Marketing, next to doing the right thing, the most important thing is to let
people know you are doing the right thing.
- by John D. Rockefeller

9
 MARKETING Quiz

1.What is the similarity among Aspirin, Cellophane, Kerosene, Thermos, Vaseline and
Sunmika?

2.Barbie is perhaps the most popular toy in the world. Which company is the owner of this
brand?

3.Named after Henry Ford’s son, this car model introduced by ford motor company was one of
the biggest flops in the Company’s History. Name it.

4.Which famous luxury car calls itself the “Standard of the World”?

5.Which watch did James Bond wear in the movie Golden Eye, the first Bond movie of Pierce
Brosnan?

6.Name the production house of Bollywood actor Sunil Shetty?

7. You know about Hollywood and Bollywood. But what is Sillywood?

8.Yahoo! Founders Jerry Yang and David Filo selected the name because they considered
themselves yahoos.Who originally used the word yahoo?

9.In Infosys, if Narayana Murthy is employee #4, then who is employee #1?

10.Which apple product /products has been named after a popular variety of apple in the USA?

Answers
10. Macintosh and Pippin.
9. N.S.Raghavan.
8. Jonathan Swift in his Gulliver’s Travel.
and Hollywood.
7. Movies made by collaboration between silicon Valley
6. Popcorn.
5. Omega Seamaster Professional Chronograph.
4. Cadillac.
3. Edsel.
2. Mattel Inc., USA.
generic names for the product category they belong to.
1.All were brand names but subsequently legally became

10
 senior speaks
KNOWING SHAONI BANERJEE
Qualifications: B.Tech (Biomedical instrumentation), West Bengal University of Technology.
MBA (Marketing)
PLACED IN: Bank of India DATE OF JOINING: June, 2011(Approx)
PACKAGE: 680,000 pa (approx.) DESIGNATION: Marketing Executive (Grade II)

WHAT MAKES A GOOD CV:

• A CV should be easy to read. (Don’t use very difficult words).
• A CV should have proper format or template.(Template given by college placement cell)
• A CV should not be more than 2 pages.
• The information in the CV should be honest and relevant, should reflect your personality.

SIP and PROJECTS:

Organization: ITC Limited
Topic: Detailed study of Skincare Market in Modern trade stores.
As a part of ITC’s future intentions to launch fairness cream in the Skin Care Market (Vivel fairness cream), a pilot study of
the market and competitor analysis was carried out along with my recommendations on four P’s before the launch of “Vivel
Active fairness cream”.

MAJOR LEARNING DURING SIP:

• Application of theoretical knowledge in understanding the market.
• Excellent work culture in ITC helped in understanding the professional attitude in work life.
• Interacting with different people helped in gaining knowledge and self confidence.
• Time management and working within deadlines.

HOW SIP HELPED IN PLACEMENTS:

SIP is very important as far as interviews are concerned. A good SIP definitely acts as a strength in the interview as one can
stress on the hard work, learnings, achievements accomplished during SIP.

WHAT WORKED FOR ME?

Only the top 10 students based on merit of MBA results were shortlisted followed by a Personal Interview. The Personal
interview lasted 20 minutes. Questions were as follows:
a) Why Banking industry after B.Tech
b) What does a Bank sell
c) What is more important for a successful product- the quality or the marketing of the product? Give example and justify.
d) Is Bluffing required in Marketing? Give examples and justify.
e) Role of a customer relationship manager in bank and a wealth manager?
f) How does credit card generate revenue for a bank
g) What is the interest rate of a savings accounts, current account ?

TIPS FOR D-day- Personal Interview

1) Dress Neatly.
2) Keep Eye Contact with the interviewer.
3) Smile and be confident in whatever you speak. Don’t be afraid to say “I don’t know” when unsure.
4) Show the passion and interest.
5) Do the necessary homework - Study about the company and industry in detail.
6 Keep faith on hard work and a bit of luck!!!

11
 case study
The Case of Toyota Recall
Stories about recall of mass products often occur in the business world. In addition to the enormous financial
costs, the withdrawal would have a negative impact on the reputation of a product which eventually endangers
its sale in the future. The lessons learnt, however become case stories for business schools and models for other
business.

About 30 years ago, exactly 29 September 1982, Johnson & Johnson suffered a major crisis. Tylenol, headache
and fever medication made by J&J was rumored to have been poisoned with cyanide by people who were not
responsible. Seven people died in Chicago. Bets for J&J was big enough: 31 million bottles were circulating in
the community with a value of approximately U.S. $ 100 million (money that time!).

In 1998, there was an event where six victims died and 73 people ill associated with bacterial contamination of
listeria in Sara Lee’s meat products. Although not yet proven and the investigation is under way, Sara Lee pulled
15 million pounds (about 6700 tons) of beef Ball Park hot dogs and other meats that might be contaminated with
listeria bacteria. Estimated cost of the withdrawal was about $75 millions. Chairman and President of Sara Lee
appeared on full-page advertisements in 80 newspapers to ensure safe products and asking consumers to check
the meat with a specific batch number. Within five months, Sara Lee’s meat products have been sold in 80% of
outlets that sell these products prior to withdrawal.

In the case of Toyota, CEO Akio Toyoda didn’t even ask for forgiveness and apologized only after cornered by
journalists in Davos. In the analysis, and an interview with Knowledge @ Wharton, Prof. Takahiro Fujimoto, an
expert of The Toyota Way, said that Toyota should send an executive to the United States and apologize immedi-
ately. Toyota was clearly waiting to get the confidence from the extent of this responsibility but consumers will
(wrongly) think that Toyota wants to avoid responsibility.

Washington State University conducted a study that found that the average cost for withdrawal (U.S. $ 540,000)
was about twice the average cost to resolve the litigation (U.S. $ 217,000). Toyota withdrawal of 8 types of cars
that are 57% of Toyota’s U.S. sales this time estimated to reach 8.5 million cars, or about 180B yen (U.S. $ 2
billion or Rp 18 trillion), even JP Morgan estimated cost reaches 500B yen (U.S. $ 5 billion or Rp 45 trillion).
Withdrawals were also expected to reduce demand for Toyota cars at 100,000 units.

TrueCar.com, famous site for consumers to compare cars, stated that consumer interest in buying Toyota dropped
12% in January 2010. To overcome this, Toyota conducted some marketing efforts to attract the hearts of consum-
ers and potential consumers. Toyota’s current car owner who buys another Toyota car will get a 2-year mainte-
nance free. New consumers who buy cars that get withdrawal (Corolla, Camry and Avalon) get 0% financing and
leasing costs are also made cheaper.

Basic question behind this drawdown is whether Toyota had neglected to pursue the quality of global market
share? Indeed, Toyota’s sales doubled from 2000 to 2008. Edwards Deming, an expert in quality management,
often warned that if the company’s focus is to improve profitability and market share in the short term, product
quality and customer service will decline in the long term.

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Rapid growth alone is not the factor that causes disability of the Toyota quality. Rapid growth, coupled with the
number of models and the increasing complexity of each vehicle because of social pressures and market demand,
adding to the burden of work to address quality issues are the reasons. Increasing complexity is what appears to
be the root of the problem.

Fortune magazine rates Toyota 7 in the lust of Most Admired Company 2010 in the world (and number one as a
company other than from the U.S.). This is understandable because the survey was conducted before the with-
drawal at the end of 2009.

Issues:
• Will Toyota manage to retain that position in 2011?
• Quality concerns and management
• Marketing efforts of the aftermath

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 CONTRIBUTIONS Editorial Team
Market Flash- JOBIN DEVASIA Editor-In-Chief- Ibopishak Singh
Launch Pad- AMAN DHAND
Page 3 – RAJAT SETIA Editors- Aanchal Nichani,
Big Ideas- AANCHAL and RAJAT Aman Dhand,
Branding with Technology – RAJAS THANEKAR Aparna Raj C.,
Budding Voice – APARNA RAJ C. Jobin Devasia,
Ad-Review- ROCHAK VYAS Rajas Thanekar,
Market Analysis – SHEJO JOSEPH Rajat Setia,
Quiz- RANJITH KUMAR Rochak Vyas,
Quotes- IBOPISHAK Ranjith Kumar,
Shejo Joseph,
Suman Bhakar

Creative and Design Team-

Tarun Gupta and Rahul Sinha