WE@ Research

RECOGNISING STUDENT’S TALENT & KNOWLEDGE

By Welingkar Research Center

January/2010/Issue#6
 WE SCHOOL RESEARCH

Prof. Dr. Uday Salunkhe,

I am delighted to present the Ja nuar y -2010 edition of WE@research, a publication of all the
research work done by our full time management students of MMS, PGDM, PGDM E-biz,
PGDM BD, PGDM Retail students.

Inventive education can come about only with creation of new knowledge and that is
possible only through research. Our students are the future managers and leaders shaping the
world of t he future. I wish all of you to read and communicate by giving your feedback and
comments.

Research also provides the students the ability to apply what they learn in the classroom to
the real business world. The research papers compiled herewith are a result of the constant
learning curve that we have traversed at Welingkar. This collection is the result of the
thought process imbibed by the leadership of our research centre at we school and the
various domain expert faculty. „Small opportunities are often the beginning of great
enterprises.‟ You are possibly reading one right now!

Enjoy this knowledge offering from We School.

Prof Dr Uday Salunkhe

Group Director
director@welingkar.org
Prin. L. N. Welingkar Institute of Management Development & Research
Lakhamshi Napoo Road,
Near Matunga (Central Rly.),
Mumbai—400019.

WE@Research /January 2010 Page 2

 WE SCHOOL RESEARCH CENTRE

The world of business is going through tremendous changes; economically, geographically and
monetarily. This entails a paradigm shift in the process of thinking and ideating. To look
beyond the obvious solutions for breakthroughs which would be sustainable for gen er at ions
to come?

Our Endeavour through the RESEARCH CENTRE has always been to create new knowledge
through research papers, case studies, business plans, business games, business puzzles, quiz
and articles. Student research has been our thrust since 2003 and we encourage all the students
to participate in research through the various B Schools, Corporate and Industry Association
Competitions.

The number of student winners as Best student, Budding Manager, Best Student Leader or Best
Research Papers/Case Studies/Business Plan has been growing each year.

Knowledge kept to oneself is of no value. Sharing of knowledge creates centres of excellence.

Do let us know how you liked this issue and how you can partner with us to mentor, guide
and enhance our research capability amongst our students.

We promise you a regular dose of Vitamin R.

WE@Research /January 2010 Page 3

 CONTRIBUTORS

WE@Research Team Welingkar Research

+91 9820363101
Coordinators:
Batch - 2008-10
Pratik pratikdattani@gmail.com
 Deepa Jain
PGDM Batch 2 (2009-1)
Dattani  Sarabjit Ajmani
 Nupur Saxena
+91 9819189967  Amrita Nayate
Priyanka ghodke.priyanka@gmail.com
MMS Batch 1 (2009-11)  Rajat Sahai
Ghodke
 Swati Arora
 Shiva Srikant
 Meenal Vyas
+91 9757270237
pravinbapna@gmail.com  Siddhesh Gawde
PravinKumar
Bapna PGDM Batch 3 (2009-11)
Batch 2009-11
 Priyanka Ghodke
+91 9819238150
 Prasad Mandre
Bhawna bhawna.sajwani@gmail.com
Sajwani PGDM Batch 3 (2009-11)  Pallavi Kaul
 PratikDattani
+91 9975108168  Pravinkumar Bapna
prasadmandre@gmail.com
Prasad
MMS Batch 2 (2009-11)
 Ayush Jhawar
Mandre
 Tarang Vasisth
 Deep Gala

CONTACT US:
FOR REVIEWS, QUERIES AND / OR SUGGESTIONS PLEASE CONTACT :
Jalpa Thakker
Research Associate
Welingkar Research Centre
Email: welingkarresearch@gmail.com

COPYRIGHT:
Wherever copyrighted material is used, the authors should be accurate in reproduction and obtain permission from copyright
holders, if necessary. Articles published in WE @ RESEARCH should not be reproduced or reprinted in any form, either in full or in
part, without prior written permission from the Editor .

WE@Research /January 2010 Page 4

Table of Contents
1. A perspective on Digital Media: Interactive Marketing…………………6
By Jasleen Parmar
(PGDM – III – 2009-10)

2. Identify ant 2 PSU banks for a merger and explain the rationale
behind the merger………………………………………………………………………..13
By Rahul Shah, Tripti Tripathi and Rohit Maheshwari
(PGDM – III – 2009-10)

3. Omniscient – Amaethon…………………………….…………………………………26
By Devang Mehta and Ankit Shah
(PGDM – III – 2009-10)

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1. A perspective on Digital Media: Interactive Marketing
Digital Media: Interactive Marketing

Introduction

With internet fast gaining significance in our lives, a contemporary form of marketing has
emerged in the form of digital media. As the world moves through a digital wave frenzy from
booking flights and movie tickets to purchasing and reading e-books, downloading movies,
songs, banking and shopping online, digital is the next big thing. And what better way to address
a large segment of consumers than through the internet medium that‟s an evolving
powerhouse. As advertising budgets shrink amidst the global gloom, the onus of marketing and
communication is moving from traditional media to the digital media.

Advertising and media agencies, companies and firms are adapting to this rising trend. In the
last 3-4 years, digital and interactive marketing have been the buzzwords in the advertising
industry. A web presence is a must to gain competitive advantage in the volatile and fleeting
memory of consumers who are subjected to an estimated 3000 ads per day. This has been
validated by a 2009 survey of interactive agencies by Forrester, a leading US based Market
Research Company. Considering the strategy and execution capabilities of interactive agencies,
one can see that the market has matured considerably in the past 18 months. It is now ready to
take a big step to join, or even replace, traditional agencies in leading marketing strategy for top
brands.

Digital Media: The concept

In the current environment of distrust and low morale due to the downward economic spiral,
many companies are moving their offline budgets to the online media. One of the driving forces
for this shift is the fact that internet marketing is cheaper and more cost-efficient than traditional
marketing. Advertising expenses are incurred only with respect to conversion rates,especially in

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marketing techniques such as search engine optimization (SEO), Search engine marketing
(SEM), pay-per-click etc. In affiliate marketing, the publishers of affiliate links are paid
only when the user clicks through to the marketer‟s website and fills an online form or makes a
purchase. Thus, Return on Investment (ROI) is higher and efficiency is greater as expenses are
realized only when a sale is made or a client acquired. Also, the effectiveness of campaigns can
be measured by determining the number of visitors, number of hits and clicks and so on.

Digital is a way of making an image and connection with customers through digital media. It‟s
about being relevant, creating conversation, and measuring the entire process. It begins with
the internet and extends throughout all media, including mobile device marketing, digital
outdoor boards, online video, direct marketing and digital advertising.

Over the last 2 years, the top digital agencies have upgraded to interactive-only service
providers. After having played subservient roles for several years, they are now ready to play
more strategic roles for their clients. They will begin to join traditional agencies at the head of
the agency table and, in some cases, completely supplant them as the lead agency partner
driving marketing and business strategy through the intersection of communication and
technology. Several recent factors have led to this trend including:
 Increased Client satisfaction: Agencies are performing beyond expectations. With 8.1
million internet users in India, 1.6 billion globally and still counting (as per
www.internetworldstats.com/top20.htm), netizens represent a huge pool of the target
population. Hence, it represents an important marketing avenue.
 Interactive grows at the expense of traditional marketing: Digital advertising is
cheaper as against traditional media. Skills in technology and analytics are becoming
crucial to success. Senior marketers are hence looking to reset their marketing plans.
 Interactive agencies are expanding their roles: Due to their skills in areas such as
technology, analytics, and social marketing, several agencies are beginning to play
bigger roles for their clients by designing campaigns outside their typical domains. For
instance, AKQA, a leading US interactive agency worked with Fiat to create “eco:Drive,”
an easy-to-use computer application that connects cars to PCs and gives drivers advice
on how to change their driving behavior to cut down on carbon dioxide emissions.

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  Analytics are evolving with plenty of room to grow: Leading firms have developed
dedicated analytics teams staffed with experienced analysts, unique proprietary tools,
and statistical models to analyze and predict both online and offline data.

Interactive Marketing: The Need

Interactive marketing agencies are growing in number and size. They are fast emerging as
Internet consultants specializing in Professional Internet Marketing, SEO, social media, Virtual
Reality, Website Design, E-Commerce, and Digital Video services.

For instance, consider the Indian Advertising Industry. Ogilvy & Mather launched its digital arm,
Ogilvy Interactive in India in 2001. With the number of internet users in the country
skyrocketing, clients were looking to take advantage of the opportunities in the digital space in
the era of the dotcom boom. Once Ogilvy started offering integrated marketing services
spanning a complete range of media channels, other contenders in the ad spectrum followed
suit. 2005 saw the emergence of digital arms of the top-notch companies in the Indian
advertising fraternity.

The reasons were simple and obvious.

1. A large number of clients wanted a complete 360 degree pitch from their agencies.
2. Agencies which provide umbrella marketing campaigns spread over TV commercials,
outdoor, radio, print, online, email, social media and direct, digital and mobile marketing
stand a better chance at bagging new contracts and retaining existing customers.
3. A client‟s needs are fulfilled at a one-stop shop. Instead of approaching different agencies
for different advertising channels, all needs of a client are addressed under one roof. The
same branding concept can be carried forward through online and offline media. The
responsibility of brand communication lies with a single custodian. End-users can relate
to the same brand values and attributes of a product or service though marketed through
different channels.
4. Collaboration and consolidation between different agencies handling different channels is
inconvenient and may not necessarily deliver the same outcome as a unified campaign.

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Growth of Interactive Agencies

Marketers want agencies to be tech savvy, adept with social media, Web 2.0 technologies,
capable of using pull interactions rather than traditional push campaigns, understand consumer
behavior and demonstrate branding, strategic thinking and creative capability.

Firms realized the need to put in place digital teams to stay competitive. Such firms will lose out
on revenue and potential clients and witness a higher turnaround among existing clients if they
do not upgrade in response to changing technological needs of clients.

Viral Marketing is a significant trend that has recently aroused interest in the digital landscape.
Consider the internet viral campaigns of the famous Vodafone ZooZoos. Zoozoo communities
and groups on social networking websites such as Facebook & Twitter were quite a rage among
internet users. The string of Vodafone Zoozoo ads that were aired during the IPL were uploaded
as a series on Youtube and enjoyed a huge fan following.

The success of online campaigns justifies the rising demand for interactive agencies. For
instance, the „Jaago Re‟ campaign in India drew a huge response from youngsters. The major
reason was the online presence of the campaign. Extensive email marketing and presence in the
social media generated a buzz around the entire activity. Since most youngsters are regular
internet users, online marketing drew the targeted segment and online registrations made the
process streamlined and user-friendly.

With constant up-gradation in technology and a huge pool of data that can be supported by the
same, converting the "data deluge" into insights that drive real business growth has become
crucial to success. Marketers who are winning have managed to turn the vast volumes of
complex data to their advantage by generating transformational insights that drive incremental
growth. This is a change nurtured by the conjunction of digital marketing supported by
Information Systems.

Mobile marketing has also seen a steady rise with the increase in number of cell phone users. It
is also the most direct way to reach the end-user. Consumers are often subjected to sms ads or

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links in group messaging services. Marketing via Electronic direct mailers, sms and emails have
become an important dimension in a technology driven world.
The use of technology is also driving Customer Relationship Management initiatives. Hindustan
Unilever Ltd. is currently working on a website to promote four of its products: Lakme, Dove,
Sunsilk & Ponds. On this website, users can create their own account, profile and explore
various options such as expert talk, exchange skin, hair, makeup and beauty tips, undergo a
makeover, watch skin related and hair-care videos, chat on discussion forums and so on. Such
technology-oriented CRM activities go a long way in establishing associations with customers
and thereby marketing products.

Interactive firms have also stepped up website development services with the exponential
growth in e-commerce and online purchasing and business models. As consumer spending has
declined and company budgets trimmed, web usability has become a key tactic for eliminating
unnecessary sales and service costs while maintaining customer satisfaction. Successful models
have shown that shifting even a small number of calls and emails to the Web site can lead to
significant ROI.

With the ever-rising popularity of blogs and social networking websites, marketing via such
channels has become increasingly popular. These have become a significant arena for
interactive communication with existing and potential customers. Technology today has evolved
to enable a one-on-one dialogue with customers. With the help of online social media,
marketers can post products on sites and encourage customer views, peer reviews, instant
feedback et al.

Digital Campaigns: Implementation & Success

The success of Obama‟s online campaign in the 2008 US Presidential Elections clearly
demonstrates the power of digital marketing. A fully functional online campaign was put in
place. It was unprecedented in terms of campaign structure, technology, online outreach and
recruiting, field organizing, voter and volunteer mobilization and online fundraising.
Contemporary online tools such as Internet videos, social networking outreach, online

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advertising and the my.BarackObama.com activist toolkit were successfully implemented.

Obama‟s online campaign team was present everywhere: YouTube, MySpace, Flickr, Twitter,
Facebook. They mobilized supporters and organized communities, registering 1.5 million
volunteers through my.BarackObama.com raising $600m from 3 million people. They also built
a consensual database of 3 million mobile numbers by promising that in return, supporters would
get campaign news before the media. Transcripts and live web views of the iconic debate
between McCain and Obama generated a huge interest among voters. Due to such extensive
online marketing efforts, even people who had only threadbare knowledge successfully went all
out to support Obama. The prowess of digital media is thus a potent tool in the marketing
arena.

When Obama‟s Inauguration took place online viewing actually exceeded regular TV viewing
with nearly 40 million TV viewers against 70 million online viewers. CNN.com reported an
alltime viewership record for a full day, almost 27 million video streams. Online campaigning
was replicated in India by the BJP, while Congress followed suit. These were out and out direct
marketing campaigns.

One can gauge the power of online media by the sheer volumes of internet traffic on the day of
Michael Jackson‟s funeral. CNN.com recorded 81 million page views, 11.8 million unique
visitors and 9.7 million live video streams. Big live events that happen during the day often
attract a large online audience since office workers use their PC at work. Jackson's startling June
25th death nearly brought the Web to a standstill, with several sites buckling under the sheer
weight of traffic.

Marketers and music retailers were quick to act opportunistic. Amazon.com stated that once
the news of Jackson‟s death became public, the Web site sold out within minutes all CDs by
Michael Jackson. His albums accounted for all 10 of Amazon's "Bestsellers in Music" list the
very next day, with "Thriller" album taking the top spot. It also quickly cracked the iTunes top
100 list and within hours, it reached No. 1. "The Essential Michael Jackson" song collection was

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the topselling album, followed by "Thriller." His all-time classic hits were the most purchased
tracks online.
CNN.com partnered with Facebook, the social-networking site, to let people share commentary
during Obama‟s inaugural speech as well as Jackson's memorial service live online. A record
300,000 users logged in, with a total 500,000 status updates exchanged and approximately
6,000 status updates per minute. For the election, the integration had produced 4,000 status
updates per minute, with a peak of 8,500 statuses per minute.

Another case in point is the blogger of the Kolkata Knight Riders Team during IPL 2009 who
went about anonymously posting inside information about the Team; harping on the ego tussles,
the lack of trust, co-ordination and respect among the team members. This ultimately led to
speculation, debate, media attention, thereby affecting the team‟s performance on field. The
media frenzy affected the real-life sport and eventually led to their doom. From this, one can
easily comprehend that digital media has the power to make or break a brand.

The Future

As the online population continues to grow at an exponential rate, interactive marketing

represents a media avenue that has immense potential yet to be tapped. With the rules of the
advertising game being constantly redefined, the digital-interactive buzz is here to stay as
technology becomes an inevitable part of our lives. This industry is poised to grow.

References

http://www.ogilvy.com/Press-Releases.aspx
http://thedoublethink.com/
www.touchpoint.ogilvy.com
http://www.mckinseyquarterly.com/Marketing/Digital_Marketing
www.forrester.com/

Author:
Jasleen Parmar
jasleenparmar@gmail.com

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2. Identify ant 2 PSU banks for a merger and explain the
rationale behind the merger.
Explain the synergies in terms of marketing mix, product mix, brands
etc.

The 2 PSU banks that can be possibly merged are Dena Bank and Canara Bank.

Rationale behind the merger: -

 Geographical hold- Dena Bank has a hold over the western region while Canara Bank
has a hold in the southern part of the country. Thus the merged entity would be able to
benefit from the goodwill that the individual banks have in the region.
 International branches- Canara Bank has an international presence in 3 countries and
also sale and purchase of 7 world currencies, swap currency and forward bookings thus
giving Dena bank a reason to merge as it lacks foreign branches.

 Rural presence- Agriculture is the most favourite lending sector for public sector
commercial banks mainly because of the high percentage of recovery, according to the
National Institute of Bank Management (NIBM). National recovery percentage against
demand in the agriculture sector stands at 66.8 per cent, while for others it’s not more
than 50%.
Dena Bank has taken a number of initiatives in rural sector funding in the last couple of
years. These initiatives include relaxation in various policies related to agriculture
financing like rationalization of interest rates, lowering down of margin, waiver of
security norms and service charges for loans up to Rs.50000 besides others. This is an
important factor that can induce Canara bank to merge with it as good returns would be
guaranteed.

Benefits from the merger: -

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  For Dena bank the merger would be fruitful as it has only 14 branches better and thus is
a comparatively smaller bank and so it would benefit in terms of better fund managers
(of Canara Bank) and possibly a chance for expansion of customer base.
 For the merged entity there would be increased earnings in terms of volumes taking into
account the large profits of Canara bank (even though the profit % would remain
constant)
 The headlines that would be created would act as publicity for the services provided by
the individual banks thus leading to increase in consumer base.
 As the overall number ATM's and branches increase so extra cost cut down if the banks
are planning an expansion.

 Marketing expenses would reduce as both take advantage of each other's ads in their
respective regions.

Product mix: -
 Dena Bank has sponsored 2 Regional Rural Banks namely Dena Gujarat Gramin Bank in
the State of Gujarat and Durg Rajnandgaon Gramin Bank (DRGB) in the State of
Chhattisgarh. This idea can be expanded further along with the Agriculture & Rural
Credit schemes offered by Canara Bank.
 Dena Bank’s scheme for credit in rural India known as "DENA KRISHI SAKH PATRA"
(DKSP) was not much of a success. This can be launched again as the merged entity
would be in a better position to scale it up and plan the financials for the same.

 The other schemes that are common should be continued and the managers handling
the department better in their respective banks can take the collective hold of the scheme
in the merged entity.

What are their current marketing and branding strategies?

CANARA BANK- The new logo is based on the idea of a bond to attract younger
clientele. 'Together We Can’ is the tag line for it thus projecting it as a value creator and
further reinforces its image as a customer centric bank.

DENA BANK- The tagline for the bank says ‘Trusted family Bank’. Its basically has a
WE@Research /January 2010 Page 14
 positioning of a rural development bank that has been innovative with its product mix.
Not much has been done in terms of marketing and branding the bank but still the
products as are unique have got a good potential to reap good yields in the rural sector
if marketed well.

What will be the post merger marketing and branding strategies?

The merger would be covered by the media and this would give the banks to highlight
their peculiarities and take advantage of that under the name of a merger.

The aspects that should be marketed post merger would be: -

 The spread of Canara Bank (2508 branches and 3 international branches) and the fact
that Exchange Companies have DD drawing arrangement on Canara Bank.
 The difficulty in differentiating based on product offering makes the client / advisor
relationship in the banks the most important driver of client loyalty. And so the quality
of service should be highlighted especially when it comes to loans in the priority sector.
 Banks serve a variety of clients with differing needs, which in turn makes it difficult to
build a brand that is relevant to all groups. This was managed well by Dena Bank by
creating groups of 600 farmers with similar needs and thus providing them service.
 The product innovations should be mentioned to differentiate from the competitors.

The merged entity should be branded as a bank that believes in moving ahead as a whole in the
sense the rural and the urban together.

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 KAYAKALP

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 3. Omniscient - Amaethon

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