omers2023

[omers2023]

Sorry you can't have this job, please come back when you're fairer

Cut to 2002 in India – “No, I am not going to allow you to play outside in the sun, you will become darker, invite your friends home and play video games” – you would constantly hear my mom say this to me ( 8 year old that loved to play cricket at the park every chance I got). As a kid, I really believed that being fair was the absolute prerequisite to become successful in life.

As I delved into the HBS case, it triggered a wave of memories from my younger days and rekindled my awareness of the deeply ingrained obsession with fair skin that persists even in 2023. Despite my best efforts, I cannot think of effective ways to shift people out of this mindset. Initially, I believed that the prejudice towards dark skin was a result of British colonization of India and its insidious influence on society. However, upon reading the case, I was astounded to learn that this bias has existed for centuries. It is confounding that something as superficial as the color of one's skin can be utilized as a metric to establish their social and economic status. My recollections of a dark-skinned classmate from school being subjected to open mockery and ridicule still haunt me. He would laugh it off, but deep down, I knew he was powerless to change his skin color.

Reflecting on the significant brand equity associated with fairness in India, it is clear that effective advertising has a tremendous ability to shape people's mindsets in today's digital era of targeted advertisements. This power to influence people's attitudes and behaviors is both awe-inspiring and concerning. By portraying people of different skin tones in a positive and diverse light, advertisers can break down stereotypes and challenge the obsession with fair skin. Advertisements must immediately stop featuring only fair-skinned models and need to showcase people/actors of all skin tones, showcasing their talents and achievements without emphasizing skin color. This can help people realize that skin color does not define a person's worth or potential. India is country where people worship the movie stars they like, and for someone like Shahrukh Khan (the biggest star in the country) to go out and promote products like “fair and handsome” is a huge step back in terms of progress. Brand managers hold an ethical responsibility towards society and its prejudices when developing ad campaigns and positioning products.

[omers2023]

Not another White Claw summer, please!

Since its launch in 2016, White Claw has emerged as a tremendous success story, dominating the US hard seltzer market with over 58% market share. The secret behind its phenomenal rise to the top has become a topic of interest. We can attempt to analyze this using Roger's Five Factors. So, what contributed to White Claw's unprecedented success in such a short span of time? Let’s try to analyze this with Roger’s Five Factors

Relative advantage: The "Made Pure" branding of White Claw has effectively persuaded consumers that it is a healthier option for drinking. This has appealed to a wide range of consumers, from health-conscious individuals to those who enjoy partying excessively (commonly known as "MBAs"). The low carb content and 100 calories per can have been particularly appealing. Furthermore, the gluten-free aspect has attracted a new set of consumers who had previously been avoiding beer.

Compatibility: Consumers readily associated White Claw with previously launched innovative low-calorie beers. The brand's effective marketing and strong distribution network have also contributed to its widespread adoption by consumers.

Complexity: White Claw was refreshingly simple, with everything clearly labeled and easily understandable. Its appeal lies in the fact that it's a tasty alternative to regular beer that can get you drunk, yet somehow feels healthier. Unlike complex beers with varied tastes, White Claw offered straightforward flavors that people could expect and enjoy. The brand consistently delivered on these expectations, which helped it build a loyal following.

Trialability: White Claw was highly accessible and easy to try, thanks to its affordable pricing and widespread availability. The brand was embraced by consumers across all economic classes, and could be found in virtually every store that sold alcohol. White Claw's strong relationships with retailers allowed it to secure prime shelf space and display areas, including dedicated coolers and prominent aisle displays. As a result, it was virtually impossible to miss, and this helped to boost its popularity even further.

Observability: White Claw's marketing efforts were focused on young adults, positioning it as a refreshing summer beverage that could be enjoyed at parties or barbecues. As more people began to try White Claw and observe others enjoying it, the brand quickly gained attention. This created positive network effects, and once critical mass was achieved, the brand's popularity skyrocketed, with no turning back.

[omers2023]

"A great way to fly" - Where is the promise of greatness?

Although I have not had the opportunity to travel with Singapore Airlines, those who have flown with them rave about their experience. Without exception, every person I know who has flown with Singapore Airlines has consistently said the same thing - Singapore Airlines is the best airline they have ever taken.

What I have heard from others aligns with what I read in the HBS case, which states that Singapore Airlines (SIA) places customer service as its top priority. SIA's commitment to exceptional customer service has set them apart from competitors and allowed them to become the best airline in a fiercely competitive industry. It was impressive to note that SIA values customer service to such an extent that they withdrew from IATA due to the regulations imposed on it, highlighting their dedication to providing personalized and exceptional experiences for passengers. SIA's unwavering focus on customer service is what has led to their success, and it is evident that they take great pride in their work, constantly striving to exceed passenger expectations.

So with these learnings in mind, I have clearly built cognitive association with the brand of SIA that it offers a premium flying experience. In terms of management and marketing lessons, this story closely aligns with the rise of Starbucks as a coffee shop that focusses on providing and experience and not just coffee. Just like I expect a premium service with coffee at a Starbucks (except for the name, they still haven’t figured out how to spell ‘Omer’ correctly), I would expect a premium flying experience with SIA and for this I am willing to pay more for the experience – a strong case for brand equity that SIA has built around their brand with the choices they made.

Cut to 2001, if a customer like me is ready to take a SIA flight and learns from the news that they are no longer going to do lie flat beds whereas a comparable airline, British Airways, is doing it. Granted I may not get a few extra smiles and greetings from the cabin crew at BA, but my flight is going to be much more comfortable. So, yes, I will pick BA over SIA and based on the first experience I have with the flight, I may even become a loyalty program member. Therefore, SIA loses a potential loyal first-class flyer.

Putting myself in CEO Cheong Choong Kong’s shoes – I would go ahead with the order to highlight to our customers that we are not going to compromise on comfort and customer service. SIA needs to keep up with the reputation as the best in class for customer service and comfort and cannot let BA get ahead of them.  

[omers2023]

Market Research - Where/What is my Market?

The HBS case highlights the fact that the core principles of marketing have remained relatively unchanged, despite the advancements in technology and the rise of digital marketing. While the tools and methods used in marketing have certainly evolved, the fundamentals of understanding customer needs, creating value, and communicating effectively have remained constant. It emphasizes that while technology has provided new ways to reach consumers and gather data, it is important to keep in mind that it is only a tool to assist marketers in achieving their goals. It concludes that it is essential for marketers to stay grounded in the fundamentals of marketing while leveraging the benefits of technology to create successful marketing campaigns.

I want to take you back to the time when I last used market research for an automotive company I worked for prior to Sloan to help them pivot to Healthcare. Going back to the dark times of COVID during early 2020, automotive companies were faced with significant challenges as demand for automotive products declined. Our company’s fate wasn’t too different. Many companies saw an opportunity to pivot to healthcare products, such as ventilators, masks, and other medical supplies, to help address the shortage of critical resources in hospitals. However, this was a new market for these companies, and they needed to understand the demand and competition in the healthcare industry. Market research played a crucial role in helping these companies make informed decisions by providing insights into the healthcare market, such as the demand for specific products, the pricing and distribution channels, and the competitive landscape. By using market research to inform their pivot to healthcare, automotive companies like ours were able to better understand the needs of the market and make strategic decisions that helped them successfully enter this new industry.

Despite having zero experience in servicing the healthcare industry, we set out to pivot to healthcare overnight. Thank God, the fundamentals of marketing are the same whether you are in automotive or healthcare – we still used the basic tools of marketing, such as sampling, surveys, and data analysis to gain insight into pricing and distribution channels – something we had been doing for years within Auto. Strong market research in conjunction with critical demand during COVID-19 pandemic helped us, an automotive company, successfully enter the healthcare market. Market research helped us answer the two basic questions – where is the market we want to serve and what is the market we want to serve.

[omers2023]

Back in the day when "Corona" meant happiness and relaxation

Cut to the 80s, Corona was the second most popular imported beer in the US only behind Heineken - a feat it achieved in less than 20 years of importing into the US. Was Corona in the right place at the right time? One could say so.

Corona's marketing strategy was simple and yet made the point loud and clear. They wanted to give people the taste of Mexico. And this taste was not diluted to suit American consumers. The manufacturing and bottling was still being done in Mexico. The marketing strategy of Corona consistently revolved around the theme of pleasant times spent in Mexico. This was made evident with their tag lines e.g., "Fun, Sun and Beach" and with their ad campaigns that focused on sunny beaches.

Luckily for Corona, two things happened simultaneously. One, the US consumer preference started to shift towards microbrews and willingness to experiment with foreign beers and pay premium price for them. Second, the Hispanic population in the US was growing at a rapid pace. Hispanic population had a strong affinity towards the taste of Mexico that Corona offered.

But even with a lot of hiccups that resulted in a lot of negative PR, Corona maintained their position behind Heineken as the second most consumed imported beer in the country, with their eyes firmly set on the pole position.

Perhaps Corona can experiment by drifting away from its position as a relaxing beach beer by launching a new segment catering to younger urban crowds that prioritize luxury and exclusivity. This may close the gap and may even put Corona ahead of Heineken in the race.