Indian Journal of Finance | Prabandhan: Indian Journal of Management | Arthshastra: Indian Journal of Economics & Research |

   Volume 45 • Number 8 • August 2015

Marketing Innovation in Partnership with Self Help Groups : A Case Study of a Farm Inputs Manufacturer
Indian Journal of Marketing, 45(8), 7 - 17
This is a case study of a marketing innovation by a leading fertilizer manufacturing company through a project with self-help groups (SHGs). The project was initiated by the company in 2003 in Andhra Pradesh. Then, the farm input companies were faced with the challenge of meeting the farmers' requirements on a timely basis. This was largely because of the dominance of distributors and dealers across the supply network. The wholesaler's loyalties to the companies were limited and opportunistic, and lay with products that gave them more margins and not with what were ideal for farming. The farmers were, as a consequence, also plagued by woes such as non availability of fertilizers during peak cropping seasons, high costs of transportation of fertilizers from the nearest town to remote villages, high interest rates charged by the channel members, opportunistic pricing practiced by distributors, and influx of substandard products. The company, in order to limit the role of the wholesalers and to supply fertilizers directly to the farmers, engaged the self-help group members as direct dealers, simultaneously creating livelihood opportunities for these members. The project engaged as many as 750 groups in the state of Andhra Pradesh. The objective of this research was to draw a case of the project as an example for other corporations to adapt in their respective strategies for business development in rural areas and to alter their mechanisms of distribution and their forms of service for the end consumers.
Keywords: distribution management, marketing intermediary and margins, customer loyalty, business ecosystems, self-help groups, supply chain, food subsidy, microfinancing
Paper Submission Date : August 11, 2014 ; Paper sent back for Revision : January 15, 2015 ; Paper Acceptance Date : March 9, 2015
1 Andhra Pradesh Mahila Abhivruddhi Society (APMAS). (2006). Self help groups in India: A study of the lights and shades. EDA Rural Systems and Andhra Pradesh Mahila Abhivruddhi Society. Retrieved from http://www.edarural.com/documents/SHG-Study/Executive-Summary.pdf
2 Banerjee, T. (2009). Economic impact of self-help groups : A case study. Journal of Rural Development, 28 (4), 451 - 467.
3 Bosch, J. (2009). From software product lines to software ecosystems. Accepted for the 13th International Software Product Line Conference (SPLC 2009), August 24-28, 2009, San Francisco, CA. Retrieved from http://www.janbosch.com/Jan%20Bosch/Composition_files/SPLC09-SoftwareEcosystems-Accepted.pdf 
4 Chandrasekaran, N. (2010). Supply chain management (pp. 170 - 178). New Delhi : Oxford University Press of India.
5 Chandrasekaran, N., & Raghuram G. (2014). Agribusiness supply chain management (pp. 64 - 70). New York : Taylor & Francis.
6 Das, S. K. (2012). Best practices of self help groups and women empowerment: A case of Barak valley of Assam. Far East Journal of Psychology and Business ,7 (2), 25-47.
7 Gueguen, G. (2009). Competition and business ecosystems in the information technology sector: The example of intelligent mobile terminals. International Journal of Entrepreneurship and Small Business , 8 (1), 135-153. DOI: 10.1504/IJESB.2009.024109
8 Hamel, J., Dufour, S., & Fortin, D. (1993). Case study methods. Newbury Park, CA: Sage Publications.
9 Iansiti, M. (2005). Managing the ecosystem. Optimize, 4 (2), 55-58.
10 Iansiti, M., & Levien, R. (2004a). The keystone advantage: What the new dynamics of business ecosystems mean for strategy, innovation, and sustainability. Boston : Harvard Business School Press.
11 Iansiti, M., & Levien, R. (2004b). Strategy as ecology. Harvard Business Review, 82 (3), 68-78.
12 Iansiti, M., & Richards, G. L. (2006). Information technology ecosystem : Structure, health, and performance. Antitrust Bulletin, 51(1), 77-110.
13 Kulkarni, S. (2004). Role of logistics in diary industry. Indian Journal of Marketing, 34 (3), 16 - 18.
14 Moore, J. F. (1993). Predators and prey : A new ecology of competition. Harvard Business Review, 71 (3), 75-86.
15 Moore, J. F. (1996). The death of competition: Leadership and strategy in the age of business ecosystems. John Wiley & Sons.
16 Prahalad, C.K., & Hammond, A. (2002).What works: Serving the poor, profitably. Washington DC, USA : World Resources Institute, Markle Foundation.
17 Reddy, C. S. (2005). SHGs: A keystone of micro finance in India - Women empowerment & social security. Hyderabad : Mahila Abhivruddhi Society, Andhra Pradesh (APMAS).
18 Singh, J. P. (2006). PEDO's SHG programme impact assessment : A draft report. Jaipur : Centre for Microfinance.
19 Tellis, W. (1997, July 2). Introduction to case study. The Qualitative Report, 3(2). Retrieved from http://www.nova.edu/ssss/QR/QR3-2/tellis1.html 
20 Xavier M. J., Raja J., & Usha Nandhini, S. (2008). Impact assessment of a rural women's entrepreneurship project using path analysis models. IIMB Management Review, 20 (2), 215-227.
21 Yin, R.K. (1984). Case study research: Design and methods. Beverly Hills, California : Sage Publications.
22 Yin, R. (1993). Applications of case study research. Beverly Hills, CA : Sage Publications.
23 Yin, R. (1994). Case study research: Design and methods (2nd ed.). Beverly Hills, CA: Sage Publications.
C. R. Rajan
Associate Professor, Great Lakes Institute of Management, Dr Bala V. Balachandar Campus, East Coast Road, Manamai, Tamil Nadu - 603 102.                                                                                  rajan.cr@gmail.com
M. J. Xavier
Executive Director, VIT University, Vandalur-Kelambakkam Road, Chennai- 600 127.

Internet of Things (IoT) : Is IoT a Disruptive Technology or a Disruptive Business Model?
Indian Journal of Marketing, 45(8), 18 - 27
The purpose of this paper was to describe how the newly emerging "Internet of Things" (IoT) will provide unprecedented opportunities to penetrate technology and automation into everything we do, and at the same time, provide a huge playing field for businesses to develop newer business models to capture market share. The information available on the Internet today is mostly constrained by the number of users generating the content. Internet users have grown from several thousand a few years ago to 2.8 billion in 2014 and is estimated to grow to 6.5 billion in 2020. Imagine a situation where we augment the effort of today's data collection method by using “Things with sense – called Sensors” to automatically collect, store, and analyze data. With the advancements in hardware, wireless networking, and cloud computing, this data can be stored, analyzed, and used. The number of sensors is projected to grow from 7 billion in 2014 to over 50 billion in 2020, with each person on earth carrying an average of seven devices. This explosion in the “things” used and subsequently, the data being collected will not only impact major service providers like semiconductor, networking, and device manufacturers, but will also redefine the current product offering and branding strategies. There will be a huge opportunity for businesses to provide a variety of customized products and services, the prominent ones being automobiles, healthcare, home control systems, environment protection, and manufacturing.

Keywords: internet of things (IoT), sensors, gateway, cloud computing, consumers, disruptive, technology, business model, manufacturing, healthcare, automobile, home automation

Paper Submission Date : December 2, 2014 ; Paper sent back for Revision : April 6, 2015 ; Paper Acceptance Date : May 19, 2015

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10 Roy, D. (2014). Mahindra Reva builds India's first intelligent car using telematics and mobility : A case study on mobility in automotive. CIO.in. Retrieved from http://www.cio.in/case-study/mahindra-reva-builds-indias-first-intelligent-car-using-telematics-and-mobility
11 Schrader wins global business from India's Mahindra Reva Electric Vehicles Pvt. Ltd. : Tire pressure monitoring system for Mahindra Reva's Electric Vehicle e2o (2013, September 12). Business Wire. Retrieved from http://www.businesswire.com/news/home/20130912005927/en/Schrader-Wins-Global-Business-India%E2%80%99s-Mahindra-Reva#.VayViPmqqkp 
12 Silver Spring Networks. (2014). Advanced metering infrastructure for electric, gas and water. Retrieved from http://www.silverspringnet.com/solutions/advanced-metering/#.U9efRPmSyCk
13 Vesset, D., Morris, H. D., & Gantz, J. F. (2014). Capturing the $1.6 trillion data dividend (Document #248459). International Data Corporation White Paper. Retrieved from http://www.microsoft.com/enterprise/it-trends/big-data/articles/making-the-right-analytics-investments.aspx#fbid=BCWgz5H1vNA 
14 Witchalls, C. (2013). The internet of things business index : A quiet revolution gathers pace. The Economist Intelligence Unit. Retrieved from http://www.economistinsights.com/analysis/internet-things-business-index
D. Narasimha Murthy
Professor - Marketing, ISBR Business School, Electronics City, Phase 1, KIADB Industrial Area, Bengaluru - 560 100.
Vijaya Kumar B.
Research Scholar, Department of Marketing, IFIM Business School, Bengaluru - 560 100.
Ambient Advertising : Analyzing its Effectiveness Using an Anti - Smoking Advertisement
Indian Journal of Marketing, 45(8), 28-36
Ambient advertising is uniquely positioned and builds greater involvement . The current study sheds light on the use of ambient advertising and its successful transmission of an anti - smoking message. The study involved the development of an anti-smoking ambient advertisement and understanding its effectiveness among the youth using a questionnaire, interviews, and observations. The results revealed that the youth were ready to change their intent of getting fascinated by smoking.
Keywords :  ambient advertising, anti smoking, emotional message, unique advertising
Paper Submission Date : October 24, 2014 ; Paper sent back for Revision : April 7, 2015 ; Paper Acceptance Date : June 6, 2015
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Samarth Singh
Assistant Professor, Management Education & Research Institute (MERI), 53-54 Institutional Area, Janakpuri, New Delhi - 110 058.


Starbucks: Adapting in the Indian Market
Indian Journal of Marketing, 45(8), 37-47

Starbucks is a coffee retail chain based in the United States of America and is expanding its global footprint by increasing its presence in the Indian market. The Indian market is quite different as the coffee consumption in India is very low - with consumption of only 82 grams per capita as compared to 4 kilograms per capita in the USA. Research in India has indicated that most people go to a café to socialize and form stronger personal and business relationships, and not merely for drinking coffee. Realizing this trend, Starbucks has customized its store ambience along with customization of its product offerings. To penetrate the price sensitive Indian market, the products are also priced lower as compared to the prices in the USA, but the prices have been kept relatively high as compared to major competitors like Café Coffee Day and Barista Lavazza. The case analyzed the evolution of Starbucks and its global vision and strategy, the challenges faced by it in India, and why and how Starbucks is adapting to the local tastes and preferences, is expanding its footprint aggressively to combat the competition and is also maintaining its premium imagery as the low price strategy may dilute its global brand appeal. The real challenge for the company in India is penetrating the coffee retail market and developing superior offerings through adaptation.

Keywords: coffee, retail, adaptation, global, strategy, tea, localization, customization
Paper Submission Date : March 31, 2014 ; Paper sent back for Revision : February 2, 2015 ; Paper Acceptance Date : April 7, 2015
1 Allison, M. (2013, January 26). Starbucks brews following in India where tea is supreme. The Seattle Times. Retrieved from http://seattletimes.com/html/specialreportspages/2020216020_starbucks-coffee-in-india-part-one.html 
2 Alderman, L. (2012, March 30). In Europe, Starbucks adjusts to café culture. The New York Times. Retrieved from http://www.nytimes.com/2012/03/31/business/starbucks-tailors-its-experience-to-fit-to-european-tastes.html?pagewanted=all&_r=1& 
3 Arora, A. (2013, April 4). Taste trumps price as fans rush in. Reuters. Retrieved from http://blogs.reuters.com/india/2013/04/04/starbucks-in-india-if-coffee-cools-please-reheat/ 
4 Bahree, M. (2012, October 20). Starbucks opens first café in India. The Wall Street Journal. Retrieved from http://online.wsj.com/news/articles/SB10000872396390444734804578066323962597316
5 Bailay, R., & Bhushan, R. (2013, September 13). Starbucks goes plush for India, gives its stores a local flavour. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2013-09-13/news/42041703_1_tata-starbucks-unique-starbucks-experience-starbucks-plans 
6 Barista Lavazza. (n.d.). In Facebook [company page]. Retrieved from https://www.facebook.com/BaristaLavazza/info
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8 Ghosh, P. (2013, May 13). Tea or coffee: Which is India's national drink. International Business Times. Retrieved from http://www.ibtimes.com/tea-or-coffee-which-indias-national-drink-1255279
9 Ghosal, S. (2006, July 25). Starbucks looks for cup full of Indian tea. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2006-07-25/news/27430470_1_orthodox-tea-indian-tea-gautam-bhalla
10 Ghosal, S. (2010, August, 10). Starbucks in talks to sell Darjeeling tea. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2010-08-10/news/27568737_1_darjeeling-tea-basudeb-banerjee-tea-board
11 Kulkarni, M. (2013, July 15). India's coffee consumption set to recover in 2013-14. Business Standard. Retrieved from http://www.business-standard.com/article/markets/india-s-coffee-consumption-set-to-recover-in-2013-14-113071500717_1.html
12 Loeb, W. (2013, January 31). Starbucks: Global coffee giant has new growth plans. Forbes. Retrieved from http://www.forbes.com/sites/walterloeb/2013/01/31/starbucks-global-coffee-giant-has-new-growth-plans/
13 Machado, K. (2014, January 23). India's coffee king unshaken by Starbucks. The Wall Street Journal. Retrieved from http://blogs.wsj.com/indiarealtime/2014/01/23/indias-coffee-king-unshaken-by-starbucks/
14 Madison, J. (2011, June 15). 'No one is going to drink a cup of pee-quod!' How Starbucks was almost named after the doomed ship in Moby-Dick. Mail Online. Retrieved from http://www.dailymail.co.uk/news/article-2003632/Starbucks-named-Moby-Dick-doomed-ship-Peqoud.html
15 Malviya, S. (2013, August 19). Tata Starbucks build war chest for expansion to take on Café Coffee Day, Barista Lavazza, Costa Coffee. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2013-08-19/news/41425476_1_tata-starbucks-starbucks-coffee-company-starbucks-ceo-howard-schultz
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19 Rein, S. (2012, February 10). Why Starbucks succeeds in China and others haven't. USA Today. Retrieved from http://usatoday30.usatoday.com/money/industries/food/story/2012-02-12/cnbc-starbucks-secrets-of-china-success/53040820/1
20 Shah, A. J., Thompson, A. A., & Hawk, T. F. (2007). Starbucks global quest in 2006: Is the best yet to come? Crafting and executing strategy: The quest for competitive advantage - Concepts and cases (15th ed., pp. 468 - 495). Boston : McGraw-Hill.
21 Starbucks celebrates first anniversary in India with launch of India Estates Blend. (2013, October, 21). Business Standard. Retrieved from: http://www.business-standard.com/article/companies/starbucks-celebrates-first-anniversary-in-india-with-launch-of-india-estates-blend-113102100438_1.html
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23 Starbucks gets off to a spirited start in India. (2013, September 27). The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2013-09-27/news/42463926_1_tata-starbucks-indian-cafe-market-costa-coffee
24 Starbucks launches flagship store in New Delhi. (2013, February 7). International Business Times. Retrieved from http://www.ibtimes.co.in/articles/432603/20130207/starbucks-launches-flagship-store-new-delhi-photos.htm
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Himanshu Mahobia
Assistant Professor, IMS Unison University, Makkawala Greens, Mussorie Road, Dehradun - 248 009, Uttarakhand.

Trilok Kumar Jain
Professor and Research Supervisor, Suresh Gyan Vihar University, Mahal Jagatpura, Jaipur - 302025.

Performance of Regulated Agricultural Markets : Perception of Farmers in Salem District, Tamil Nadu
Indian Journal of Marketing, 45(8), 48-59

Although India has achieved self-sufficiency in food grain production (more than 230 million tonnes in 2011-12), but it is still characterized by low levels of productivity due to degradation of natural resources and lack of technological & infrastructural facilities. Unfortunately, unfavorable price regime and low level of value addition activities have also contributed to the out-migration of the farmer class from the rural areas. To secure the agrarian community of the country, India has brought regulations in the agricultural sector, especially in output marketing of agricultural produce. The government has put in serious efforts in bringing all the agricultural markets of the country under the Agricultural Produce Marketing Committee Act, which restricts the sale of agricultural produce anywhere except in the regulated agricultural markets (RAMs). These regulated agricultural markets are direct sale markets monitored by the District Agricultural Marketing Committees of the respective state governments. The present research attempted to bring into light whether these markets were functioning according to the expectations of the sellers/farmers. The study used binary logistic regression, correlation analysis, and other statistical tools to discover the underlying dimensions of various indicators with regard to the overall satisfaction of the sellers/farmers with the performance of the RAMs located in Salem District of Tamil Nadu. Most of the variables/indicators related to market performance were rated on the positive side of the scale by the respondents, thereby concluding that the farmers had a positive perception of the concerned RAMs.

Keywords: regulated agricultural markets (RAMs), performance indicators, perception, market efficiency, social institutions
Paper Submission Date : October 24, 2014 ; Paper sent back for Revision : January 11, 2015 ; Paper Acceptance Date : February 23, 2015
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Assistant Professor, Department of Business Studies, Islamic University of Science & Technology,
Awantipora -192 122,
Kashmir, Jammu & Kashmir.