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  • 7 Mistakes Entrepreneurs should avoid having a Successful Pitch or Presentation

    When you don’t have the necessary funds to launch a startup, the pitch you deliver to potential investors can make the difference between a dream come true, and one swept under the rug.

    At the end of the day, the profitability of your business idea weighs the most in the eyes of an investor, but that’s not the only factor you should keep in mind. Affluent investors can receive dozens of great business opportunities every week, and in that case, it’s the quality of the presentation that balances the scales.

    Although not all of these common Powerpoint music mistakes are fatal, it’s always a good idea to be prepared. You only have one shot at a good impression, and you don’t want an otherwise brilliant startup idea to go to waste because you didn’t put a few extra hours into your pitch.

    Making Unsolicited Pitches
    Having a limited understanding of your business scope
    Not bringing enough materials
    Lackluster presentation skills
    Avoiding the hard questions
    Making the pitch without a demo
    Forgetting to follow up
    FAQ

    Making Unsolicited Pitches

    Perhaps every entrepreneur out there has fantasized about bumping into an investor in the elevator and convincing them in 60 seconds that their idea is the next big thing. Unfortunately, this is the kind of elevator pitch is one-in-a-million scenario that creates unrealistic expectations.

    In reality, you should never deliver a pitch without the investor agreeing to a meeting in advance. Investors are busy people, and they won’t be impressed by your gesture.

    Even if you send an unsolicited pitch via email, in 99% of cases, it will go straight to the spam folder, so, to be safe, schedule a meeting to make sure your pitch is actually heard and given the investor’s undivided attention. Also, always make sure you prepare a short and engaging pitch about yourself.

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    Having a limited Understanding of your Business scope

    The worst moment to realize the flaws in your business model is during a pitch meeting. No matter how great your idea sounds in theory, the moment when an investor realizes you don’t know your product or the market, they will lose interest.

    Not doing your research comes across as unprofessional and lazy and raises red flags – especially if you don’t have prior experience. So, know your audience, know your product and your competitors because you will 100% be asked about these things and, it will help you deliver a perfect pitch.

    Not bringing enough materials

    Even if your pitch is short and sweet, the investor will still need documents to back up your claims, provide a roadmap of business development, and expand on aspects that couldn’t be addressed in the meeting. Even if the investor did not request anything specifically, you should still bring with you the following:

    • Business plan
    • Executive summary (a shortened version of the business plan)
    • Revenue forecast, cash flow, and operational expenses
    • Resumes for members of the upper management, detailing their experience in the field.

    To be extra safe, you should have both digital and physical copies of these documents. Referring to them during the sales pitch shows that you’ve done your homework and that you’re committed to your idea.

    Lackluster Presentation Skills

    A great presentation can’t turn a bad business idea around, but it can prevent investors from losing interest and forgetting your file in a drawer. Unfortunately, not everyone was endowed with Steve Job’s charisma and presentation skills, which is why the more you rehearse at home, the better.

    You never know how you react under pressure, so having a script to refer to can save you from all those umms and errs that weaken your language and make you sound like an intimated high school student. It also helps to keep your presentation short.

    Don’t show up to the meeting with a 50-slide presentation filled with large blocks of text. Instead, keep the number of slides to a minimum, use appropriate Powerpoint music, and focus on strong, impactful visual elements. The PowerPoint presentation should include key figures and ideas, but you’re the one controlling the conversation. In general, 15 to 20 minutes is more than enough for the investor to understand your business idea, so structure your pitch around this interval.

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    Avoiding the Hard questions

    Pitch meetings aren’t a one-way street. The investor won’t give you a yes or a no after you delivered a monologue. On the contrary, expect lots of questions and don’t panic if they insist. What makes your idea so special? Why should they pick you out of all people? Can you guarantee that customers want your product? It’s just a way for them to check that you know what you are talking about and clarify some of the things they should know before going into business with you. And, when the questions inevitably get tough and touch on vulnerable points (after all, no business is immune), don’t react negatively.

    By working with you, investors are taking a risk, and it’s normal for them to address problematic topics. If you become too defensive, rude, or downright avoid the questions, you may come across as unprepared or difficult to work with. Instead, try to answer difficult questions as transparently as possible and avoid the scripted “I’ll get back to you on that later.”

    Making the pitch without a demo

    You can’t make a demo for every business idea under the sun but, if your business model allows it, then creating a demo, even a rough one, can make your pitch more persuasive – especially if it’s technology-focused.

    First of all, a demo helps investors visualize concepts that may sound difficult in theory. And secondly, it shows that you already have a capable team and that you went the extra mile and that you’re serious about your product.

    Many times, investors meet up with entrepreneurs who only have an idea but don’t believe in it enough to put it into practice, so a demo helps you stand out from the crowd.

    Forgetting to follow up

    No matter how the pitch meeting went, you should take the time to send an email to the investor, thanking them for their time. Avoid generic, template messages and personalize your follow-up in a way that’s relevant for your interaction. It’s a small gesture, but it goes a long way.

    FAQ

    How long is napkin elevator pitch?

    A good elevator pitch should last no longer than a short elevator ride of 20 to 30 seconds.

    What is a common mistake of pitching?

    The most common mistake you should avoid while pitching is not overloading your audience with information.

    How do you end a pitch?

    A great way to end a pitch is to ask them to join you on a mission or journey.

  • Business Model Of ITC Limited: How Does ITC Make Money?

    The height to which a business can be taken is sometimes hard for the eyes to meet. Some turn out to be pro at this, whereas sum ends up with nothing on this earth.  Several factors together build up to make a successful business stand; it becomes tough and competitive to keep all the elements simultaneously. Some minds prefer sticking to one type of business. On the other hand, some reasons go a step ahead creating various branches on which their business runs.

    Likewise, ITC limited is one that comes under the second category. With utter determination, it has become a well-renowned brand that pops up in nearly every advertisement that we come across. Not just stopping at one-way success, ITC made sure that it ends up ruling its domain. So here in the lines which follow, we will be sailing through the functioning and execution of the ITC limited.

    About ITC limited
    Business Model of ITC
    What is unique in the business model of ITC
    How does ITC make money?
    Conclusion
    FAQs

    ITC Limited Business model analysis

    About ITC limited

    1910 being the birth year of this highly established company, Kolkata in West Bengal houses its headquarters. Generally, ITC can be simply understood as a multi-industry company with its working hands in more than one business field. And that too is confined to single geographical coordinates, instead of growing with many locations in hand. However, the source of these hands is familiar with Sanjiv Puri as the chairman and managing director of this company breaths.

    Areas of operation

    The Indian subcontinents being the central arena to work on. Which further have countries like India, Nepal, Bhutan, Sri Lanka, Bangladesh. Besides that, the Gulf countries also get a taste of their business.

    Essential products and services

    ITC Products
    ITC Products

    As stated earlier, ITC is no one business company. Hence there’s a wide range of products this company houses. Because of this wide range of variety, it attracts the masses and meets the needs at large. If we go on having a quick look over the list would start from ;

    1. FMCG products: The light hectic free products from packaged food, household items, cosmetics, items we need daily, etc. Its fast-moving products include brands related to personal care products such as Fiama, Vivel, and Superia, stationery products such as Classmate, packaged food products such as Aashirvaad, Lychee Flavour, Bingo!, Sunfeast Dream Cream biscuits. Matchsticks and incense sticks such as Mangaldeep are also included under ITC’s products.

    2. Apparel: With fashion being a significant component in our lives, it was a good move on the part of ITC to have a competition in this too. John Players, ITC’s apparel brand, serves its customers with quality formals, casuals, denim, and accessories.

    3. Cigarettes: Named the tobacco company in its early days, cigarettes and tobacco were ITC’s initial products. Wills, the globally renowned cigarette brand by ITC, also serves its broad audience with designer wear, formal wear, casual wear, evening wear apart from cigarettes. Other popular cigarette brands include Scissors, Classic, Gold Flake, Flake, Insignia, Navy Cut, Briston, etc.

    4. Hotels and resorts: It’s one of the best investments, no doubt. ITC also holds its name under the list of premium hotels. Welcomhotel, ITC Hotels, Fortune Hotels, and Welcomheritage Hotels are the premium brands of hotels. These hotels have over 100 hotels spread across 70 destinations.

    5. Agribusiness: ITC ranks second in providing agri-products which include feed ingredients such as soya meal, marine products such as prawns and shrimps, food grains such as wheat, barley, maize, processed foods, and coffee.

    6. Paperboards & Packaging: ITC’s paperboard products include paperboard, specialty paper, graphic paper, and others. Apart from this, ITC provides printing services for both Indian and international clients.

    7. ITC Info Tech: ITC also provides business-friendly technical solutions related to manufacturing, banking, finance, travel, and healthcare.

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    Target audience of ITC

    Fixing a confined group to such a massive range of products and services is somewhat nearly impossible. With its diverse ability to produce constantly keeping the variety in front, it draws every pair of eyes and ears irrespective of the age group. That too from every field possible.

    Day by day, ITC is extending its services and targeting audiences from every age group. ITC has to go hand in hand with the people’s choice, which varies with every square kilometre. Thus, to suit every individual’s need, the company is always in a constant state of polishing itself. It makes sure that it takes people of all ages under its production umbrella in a way that makes room for everybody’s needs.

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    Business Model of ITC

    ITC Limited Logo
    ITC Limited Logo

    Hence, to build its revenue without any hindrance, the company has a beneficial business model on its table. ITC makes sure that it produces something new to attract the audience. This way, they would be drawn like magnets, end up investing in the latest products in the market.

    To get people to know about the new launches, it also never lags in displaying those. Along with that, back in the company’s production house, there’s always constant research about the mass. It helps in designing their upcoming innovation according to the audience’s feedback.

    To carry on the smooth functioning of the company, the resources have to be rigid. The infrastructures, physical inputs of the employees, transportation, and storage are valuable resources. These also include a set of experienced workers who know the mass from a closer perspective. And thus, insist on producing what should be the following product. These resources are like the pawns of the company. As a group, they contribute a significant amount to the revenue bar of the company.

    The customer gets a symbol of the wise company not to remain put with the profit from a particular segment. Likewise, ITC, by being an all-friendly company thinks about, the needs of every age group. Also, people of every geographical region. Every human should feel the essence of its products. Be it an urban or rural,  a small town or big city, ITC makes sure that the products reach every hand that searches for them. Hence, getting inputs from all directions helps the company with better motivation and finance as well.

    ITC being such a vast organization has the best value services for its customers. As it is confined to a single sector of producing, the customers are provided with a variety of offers and reasons to visit the company’s doorstep. The central bullet point is that all these services root from a single branch.

    To sell its products, ITC never falls short of platforms. It is evident that for such a vast project, several stations would be required to enter the market. Thus, the online distribution network is a convenient way. Apart from that, all sorts of apps designed by or for ITC do the job. It attracts, gives ideas, and makes aware people of the existence, efforts, and production of ITC. All these factors shape the business model of ITC.

    What is unique in the business model of ITC

    Starting from consumables to household items and paperboards, ITC does its best to satisfy its audience. A hard-to-count bunch of products brings ITC its title of being the most renowned producer. Apart from a small loophole of producing tobacco, the rest of its products are high on demand always.

    There’s no doubt that ITC has a robust network when it comes to the delivery of products. Production, storage, and delivery of such large quantities would sit on a vast expanse of land. That, too, ITC has well-taken care of. It is making sure that its products reach the assigned location in the minimum time possible.

    In the initial days, ITC diversified its resources and extended its business across many different sectors. It helped it create its brand presence which ITC utilized while entering into the FMCG sector. Moreover, ITC’s diversified business has led to reduced costs of outsourcing. The interrelation between its businesses has helped it grow and establish itself.

    How does ITC make money?

    Breaking down the streams of revenue, cigarettes contribute to about 77% of its revenue generation. On the other hand, paperboard & packaging contribute about 7.3% to the payment. Looking at other products, their agri-business contributes about 7.0%, hotels contribute about 4.3%, and FMCG products contribute about 4.0% to their total revenue.

    Conclusion

    Starting from scratch as a tobacco-producing company to being the ITC limited, this company has come a long way. Striding past innumerable competitors, it has gained what many dreams. Nevertheless, ups and downs are a combo pack that comes with every business. But with the amount of build-up ITC has already created, it would be a sweat-drenching process for any company to snatch the market from ITC. We, as consumers, with great delight, pick up the products of ITC without any second glance, which makes it even more invincible.

    FAQs

    What is main business of ITC?

    ITC Limited is an Indian conglomerate with diversified businesses in Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes, Apparel, Stationery Products, Incense Sticks, Safety Matches, Hotels, Packaging, and others.

    What is the revenue of ITC?

    According to the 2020 update, 52,001 crores is what the present revenue of ITC stands for.

    Who is the CEO of ITC?

    Sanjiv Puri was appointed as the CEO in February 2017 and continues with his post to date.

    How much debt does ITC have?

    329.35 crores are the debt amount ITC has, as recorded in March of 2021.

  • Innovative Marketing strategies of Signal | How Signal emerged as a Successful secure messaging app?

    Would you be willing to use a messenger app for free that provides you with different features, all that you need? With a simple minimalistic user-friendly design. Allowing you to connect with your friends, text them with Bitmoji, GIFs, a wide range of filters to choose from, emojis, stickers, fulfilling your wants to have a business account. The answer is obviously a yes, an all-in-one flexible app that does it all. But all the while having zero respect for your privacy, no etiquettes are followed, selling and collecting your personal data to target ads.

    One application that emerged as a successful secure messaging app is Signal which applied distinctive marketing strategies to compete against the tech giants.

    Use Signal: Elon Musk
    Few Things to Know about Signal
    Comparison between Signal and other different apps
    How has the Signals messenger app integrated distinct marketing strategies?
    FAQ

    How is the Digital Tech World working in this era?

    Artificial intelligence has worked wonders, but there lies a negative side to it, and you cannot ignore it anymore. The products, services we use for free are working against, what we think, and the tech world needs to dismantle the patterns that it has created.

    Tools that were designed to work for us are now controlling us, leading to a destructive future with Artificial Intelligence that constantly bombards you with all the information that is not needed by you at the moment.

    The Social Dilemma

    The Netflix documentary that was released back in 2020 has given us insights into the horrific truth about the way social media platforms and algorithms work. One of the bone-chilling quotes by Hövermann is:

    “If you’re not paying for the product, then you are the product” — Daniel Hövermann”

    Now that people are more wide-awake, they prefer Ethics and Privacy over everything.

    Use Signal: Elon Musk

    The breakthrough was Elon Musk chimed in the conversation, suggesting the messenger app on Twitter. Musk’s tweet consisted of two words: Use Signal.

    Elon Musk Tweet about Signal
    Elon Musk Tweet about Signal

    And the app Signal boomed. People started downloading it; the Signal Advance Inc. stock rates went up as many confused it for the company which owns the Signal Messenger. A clarification came from Signal Advance Inc. later itself that it is not the company that owns Signal Messenger.

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    Few Things to Know about Signal

    A quick look into the secure messaging app Signal which keeps all of your conversations private.

    • The messenger app was launched in 2014 by Signal Messenger LLC and Signal foundation.
    • You can manage group chats, texts, photos, videos, and voice messages via the messaging app.
    • The app is famous among journalists, officials, and people who love being private.
    • It’s available on Android, iOS, and desktop.
    • The end-to-end encryption feature does not allow even the company to read your messages. As the local backups can be enabled or turned off by default.

    Comparison between Signal and other different apps

    When Mark Zuckerberg’s vision of integrating these three Facebook, Instagram, and WhatsApp was happening. Comparisons started between Telegram and the Signal messenger app. Which one is better, with what features, when the question floated around other social media apps and started trending on Twitter.

    The New Privacy Policy of WhatsApp

    Not sure about the new Privacy policy about WhatsApp that came along with its update. Leaving its users with no option but to accept the new Privacy policy over which loomed questions and doubts also led to popularity of Signal.

    How has the Signal messenger app integrated distinct marketing strategies?

    Referral Traffic

    Signal simply gave a solution to people who were looking for an alternative compared to other messenger apps with one promise. End of a data breach, complete privacy, and following the etiquette of ethics. Giving us a reason to share the app, making it go viral-coefficient.

    Collaboration

    Signal recently collaborated with other pages on Instagram, @plasticthing to shed light on its message while also reaching a wider range of audiences on the page of @plasticthing.

    Plasticthing collaboration with Signal
    Plasticthing collaboration with Signal

    Word of mouth

    People talked on Twitter when WhatsApp was about to update its privacy policy. Sending it into a frenzy, the audience not only started comparing the features of WhatsApp to the Signal Messenger app, but also its other rivals. They engaged us and created a dialog among the people.

    Influencer Marketing

    Though it was not intentional to get Elon Musk to influence people, asking them to use the app. The app was successful in having its conversational rates go up. People who saw the tweet by Musk built a trust factor among the people.

    Those who saw the tweet did go to the play store (for android users), searched the app under the influence, and downloaded it. Switching from the competitors‘ apps to Signal. They took advantage of the situation by marketing it.

    Social media Marketing and Digital Marketing

    An IGTV video of Taraji. P. Henson responded with the main key message:

    “We know nothing”

    Trying to interact with the audience on a more personal basis and establish that relativity factor.

    In their posts describing how different apps works. Harvesting our personal data and targeting ads accordingly. Asking us to make the better choice that we do have the freedom to choose, break free from the apps that constantly keep us under surveillance. Not to endure the problem because it lays underneath invisible. Harvesting data and monetizing it.

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    Conclusion

    Signal, is yet gaining popularity and competing directly with the tech giant apps, with people being more aware of problems arising related to their privacy. Signal has been effectively using the marketing mix strategies, nailing the question of:

    “What does it mean to successfully market?

    Connecting with the audience at the right place and time.

    FAQ

    Who is the founder of Signal?

    Signal was founded by Moxie Marlinspike and Brian Acton in 2018.

    How does Signal make money?

    Signal being a non-profit organization makes money through donations.

    What is Signal?

    Signal is a free and open-source application founded by WhatsApp co-founder Brian Acton. It provides users with privacy in messaging. It is an instant encrypted messaging app through which a user can send photos, videos, voice notes, etc.

  • Business Model Of Bajaj Group: How Does Bajaj Group Make Money?

    In this world of clashing industries, we must come across the name of the Bajaj group. Proudly calling itself an indigenous company, Bajaj Group is a multi-industry (also known as a conglomerate). This industry is one of the most well-known in our country. It is also one of the oldest of its kind. Here we will talk about its business model and its secret to strive and perform well.

    About Bajaj Group
    Business Model Of Bajaj Group
    What is unique in the Business Model of Bajaj Group?
    How does Bajaj Group Make money?
    Conclusion
    FAQs

    About Bajaj group

    About Bajaj Group

    Bajaj Group of companies, being India’s one of proudly indigenous companies, was founded in 1926. Its founder was Mr Jamnalal Bajaj. It set up its first headquarters in Mumbai. It boasts of being one of the oldest multi-business companies in our country. It serves worldwide, so it’s also multinational. Having achieved the ‘ First in the industry’ status with all plants certified and several other international awards with its excellent automobile production, Bajaj stands high in business standards.

    Areas of operation

    The Bajaj groups started operating first in India and, with the flow of time, placed themselves in the list of oldest conglomerates of India. With about 40 companies and nine subsidiaries of the Bajaj Group, the company exports mainly to Sri Lanka, Colombia, Indonesia, Netherlands, and Bangladesh. And its soon wanting to expand its exports to Russia. Not just this, the business of Bajaj Group is expanding worldwide nearly to every corner of the world.

    Key products and services

    Being a multi-business company, Bajaj deals in automobiles, insurance, financial services, electrical devices, consumer care, alloy and steel, and finally in sports. A single company provides all these services. Here is a quick list of services offered by the Bajaj Group:

    1. Automobile: Being one of the largest producers and exporters of automobiles in India, the Bajaj group exports up to 50-52℅ of its automobile production. Bajaj auto holdings limited as an investment company, Bajaj Auto international holdings BV, Maharashtra scooters Limited, PT Bajaj Auto Indonesia are all under Bajaj Group.

    2. Insurance:  Bajaj groups is also known widely for its insurance providing services. Bajaj Allianz General Insurance Company Limited, Bajaj Allianz Life Insurance is essential to assistance provided by the company.

    3. Finance services: In the field of finance, we have Bajaj finance Limited and Bajaj Finserv Limited, and these deal with financial assistance and distribution of products along with hiring and leasing.

    4. Consumer care: Mostly, cosmetics and hair care products form a part of this. Various oils, face wash, soaps, scrubs, face masks, facial creams are products it deals with.

    5. Electrical Device: Various electrical devices, primarily fans, air conditioners, poles, lattice closed towers, and high masts, form a part of the electrical devices Bajaj Groups deal with.

    6. Alloy and steel: Mukand International Limited is the part which deals with the trading of metals, alloys, and steel along with alloys of iron. Hospet Steel Limited Plant is the iron-making division, and also in steelmaking and rolling mill.
    7. Electrical components: Electrical devices such as GLS lamps, fluorescent lamps, electrically operated fans, lights, and various miniature lamps are part of Bajaj Group’s productions.

    8. Sports: Various sporting equipment and gym equipment are products of Bajaj. Equipment relating to various sports and also cycles are a part of it.

    Target audience

    Bajaj provides many different services in many other fields. It caters to the needs of everyone. Without any distinction in gender, age, or irrespective of the sex of a person, Bajaj groups provide their services. Being a multi-business company, it is a conglomerate in its truest sense. Its services attract an array of audiences, from a retired individual to a homemaker to a sportsperson.

    Business Model Of Bajaj Group

    Bajaj Group
    Bajaj Group

    Bajaj Group showcases an extraordinary business model for others to follow irrespective of what industry they are dealing with. A multi-business company isn’t set on its own; it requires strategy and all pooled into its business model. It has a diversified business structure and mainly focuses on three things – acquiring many customers irrespective of their age and sex. The second is providing a great variety of services that can cater to the needs of all its consumers. The third one is the expansion of its exports and services into different other countries.

    Its business model helps it to get a maximum amount of profit. Its revenue means include exports, shares, selling within the country, sponsoring, and manufacturing much-needed materials.

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    What is unique in the Business Model of Bajaj Group?

    As already discussed, Bajaj groups believe in catering to the needs of their large and diversified customers. It’s not easy to adopt these well-crafted strategies, but they made Bajaj Group’s business model inspiring every industry. These include:

    1. High exports: Exports form an essential part of the business model of Bajaj groups. It mainly exports its two-wheelers to several countries. Also, the team which handles it is very experienced.

    2. Meeting the needs of customers: The prices are reasonable for an Indian household. Also, online marketing and easy EMI options are available to those who want to buy the products

    3. A complex and unique distribution network: A highly managed and efficient distribution web that eases the setting up of business both in and outside our country. It has many warehouses and storerooms with its products—a group of trustworthy dealers.

    Providing several services and proudly being the most prominent bikes and scooters in our country, nearly 50-52 percent of its sales are exported. Some of its essential strategies in the business model also include promoting its new launch, giveaway and lucky draws, Internet marketing, easy EMI options on various goods. Other methods include different social media accounts which post about the product, providing a great versatility of products, and letting customers decide and review their products.

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    How does Bajaj Group Make money?

    The wisely crafted business model helps Bajaj groups to extract profit efficiently. First, the services provided by it caters to a large and diverse audience who use its services frequently. The company gains profit from as many national and international consumers as possible. Almost 50 percent of its automobiles are exported. Also, there are numerous ways to make money in its own country.

    Bajaj Group makes its money by exports. Bajaj Auto, which is a part of the bajaj Group, manufactures a large number of two and three-wheeled vehicles. These are in great demand in foreign countries. Over more than seventy countries have gotten these vehicles imported from India. It helps in adding to the revenue of bajaj groups. Selling and buying of shares also add to its revenue.

    Bajaj is a well-known brand of electronics in India; people buy electronics from this brand in many ways. Indians trust this brand, and because of its excellent performance, its demand is very high in the country. It helps the company to get more money. By using the method of recycling, the company makes its iron and steel. These, when sold this generates a large amount of profit. As steel and iron are used in every place, its sales help the company a lot.

    Bajaj has sponsored many events and even supported the Indian teams in some international events, these sponsorship helps get income. Because of the increase in the number of factories at various places, more production is the result. More production means more sales. Also, the taste of people is being taken into consideration to increase the amount of profit.

    Conclusion

    Bajaj groups which started as small businesses soon grew into a vast business empire. The founder, along with his family, all worked together in making Bajaj one of India’s most profitable brands. Not only does it provides us with a variety of products, but it also engages itself in several welfare activities. This company has won the hearts of both Indians and the people of another country. It is due to its efficiency and diversity of products.

    FAQs

    What is the revenue of Bajaj group?

    Bajaj group has a revenue of more than 50,000 crores in Indian currency.

    Who is the MD of Bajaj group?

    Rahul Bajaj is the MD of Bajaj groups.

    Who are the CEO of Bajaj Group?

    Rajiv Bajaj, Sanjiv Bajaj, and Lalit Jalan are the CEO of Bajaj Group.

    How many companies are there in Bajaj Group?

    There are 34 companies under Bajaj Group of companies.

    What are the companies under Bajaj Group?

    Some of the companies under Bajaj Group are:

    • Bajaj Allianz General Insurance Company Ltd.
    • Bajaj Allianz Life Insurance Company Ltd.
    • Bajaj Auto Finance Ltd.
    • Bajaj Auto Ltd.
    • Bajaj Electricals Ltd.
    • Bajaj Finserv Ltd.
    • Bajaj Holdings & Investment Ltd.
    • Bajaj International Pvt. Ltd.
    • Bajaj Sevashram Pvt. Ltd.
    • Bajaj Ventures Ltd.
    • Hercules Hoists Ltd.
    • Jamnalal Sons Pvt. Ltd.

  • What happened to H&M in Africa? | H&M Racism Accusations in Africa

    The World is constantly changing and evolving. Every moment transforming, new ideas take birth are implemented. Trends dominate today’s world and go fast as they come. In a moment everyone is involved and in the other everybody has already forgotten about it and is catching up with another.

    What is fast fashion?
    Problem with H&M and Fast fashion
    What happened to H&M in Africa?
    Other fast fashion brands and H&M and the need to do better
    FAQ

    What is Fast Fashion?

    In the fashion industry, as the word suggests, fast, quick, and trendy clothes are made for the consumers that are made and distributed rapidly among its consumers.

    The brands involved in the fast fashion industry:

    • Get the latest styles that are trendy into their stores.
    • The clothes are usually sold at a low price using cheap labor.
    • They produce these clothes in huge quantities and the consumers buy them recklessly. Because everyone is wearing it and it works.
    • Fast fashion is a threat to the environment, gives rise to social problems, and majorly contributes to climate change.
    • It heavily influences many aspects and brings about negative changes.

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    Problem with H&M and Fast Fashion

    Climate change is real and it is happening. No matter how long the World leaders may deny it and entrepreneurs may go on with the sole aim of making money. Using, exploiting, polluting the resources as well as ignoring what they are doing to the planet.

    Wastage of Water

    Not to mention the gallons and gallons of water that go into the making of the clothes. That also involves generating 20% of the wastewater. Plus dumping microplastics into our oceans, which is half a billion tons of it.

    The growing culture of exploiting laborers

    How are these companies able to manufacture their clothes so quickly? There has to be someone involved, and yes, here come the laborers. Brands involved in the fast-growing fashion industry exploit their workers. They are exploiting their basic human rights.

    Making them work for insane work hours with only little pay. These laborers also include children from developing countries. The labor policies are not ethical with gender inequality, forced labor, and freedom of association. This issue has been brought up constantly, by many activists and other personalities and this inhumane practice must be put to an end.

    A report issued in 2016 by Human rights group Asia Floor Wage Alliance (AFWA) also reported cases of sexual harassment and low wages.

    Sustainable Fashion and the Conscious Collection

    People are looking for clothes that are more sustainable, recycled, or been. Thrift shops are a new option available in the market. Thrifting is becoming a thing now. Consumers are more aware now and prefer clothes made in an eco-friendly way. Even though the Swedish brand has come up with its “The Conscious Collection” H&M has been criticized by many regarding what it deems is sustainable.

    Hasan Minhaj on Fast fashion

    The famous show Patriot Act with Hasan Minhaj, which creates awareness about the issues that are important in a fun way, all the while educating us about how we can make a difference for good, is a Netflix show. The problem of the fast fashion industry is as real as it gets. The extent of it is such that Hasan Minhaj had to go to an episode of thirty minutes; the Ugly Truth of Fast Fashion.

    He smartly covers every aspect of the fast fashion industry and how it is changing the business model in his unique comedy series in 2019. The episode is a must-watch as it brings out the flip side of fast fashion.

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    What happened to H&M in Africa?

    Back to 2015

    Featuring lesser Black models in their advertisements was observed by the people, accusing H&M Africa of racism. The brand tweeted, saying that marketing their campaigns, they wanted to convey their image positively.

    And show fashion in the light of inspiring way conveying the feeling of positivity since their marketing campaigns have a huge impact.

    Taking that, they communicated that the “white models” portray a “positive image” for the brand. It faced more backlash from the people. Another tweet came saying:

    “We have worked with many models from various ethnic backgrounds in our campaigns.”

    Cultural appropriation? Not for the first time!

    Belonging to the H&M Loves music summer collection, which was a limited edition, a faux leather headdress was called out by the Native Americans.

    H&M Headdress
    H&M Headdress

    The line was designed to include clothing and accessories for music festivals and similar events. The headdress was later removed from the US and the Canadian stores.

    Racist Advertisements and Culture appropriation

    H&M closed all its stores in South Africa after the protestors from the Economic Freedom Fighters (EFF) organized mass protests and thrashed the stores over the racist ad in 2018. The ad revolved around a Black child model with a green hoodie, reading the text “Coolest monkey in the jungle” As you are aware, calling someone monkey is used as a slur.

    People on social media called out H&M for its racist ad. The image was later taken down from their website. Some of the celebrities that had signed contracts with H&M said that they would no longer be working with the brand. Some expressed shock.

    LeBron James on its Instagram expressed his opinion on H&M's ad
    LeBron James on its Instagram expressed his opinion on H&M’s ad

    H&Ms decision to close their stores in South Africa came after a drop in their quarterly sales in a decade.

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    Other fast fashion brands and H&M and the need to do better

    These fast-fashion brands in the industry need to draw a clear line between making a profit and working with ethics. The business model of the fast-fashion industry is only leading to more problems.

    The ad campaigns and the ads have to be designed by doing their research work. Keeping in mind the sentiments of the people as they have a huge impact. These brands need to draw a line on innovation and cultural appropriation.

    FAQ

    What is fast fashion?

    In the fast fashion industry fast, quick, and trendy clothes are made for the consumers that are made and distributed rapidly among its consumers.

    What are some of the fast fashion brands?

    Zara, H&M Group, UNIQLO, GAP, and Forever 21 are some of the top fast fashion brands.

    What are the disadvantages of fast fashion?

    The disadvantages of fast fashion are, not paying fair living wages to workers, poor working conditions, child labor, environmental destruction and increasing amounts of water pollution.

  • Heard of Wai Wai Noodles? | Wai Wai Noodles Marketing Strategy

    Wai Wai noodles is an Instant noodle brand. It has a completely different fan base for the people in Nepal, India. Here is the reason? The brand has had its presence since the year 1972, starting in Nepal.

    Now offers its noodles to 32 different countries. The message the brand gives out is to: Eat it anyway, anywhere, 2.3 billion packets of the Wai Wai noodles are made every year.

    Wai Wai noodles are made in India. Which now has a 1000 crores revenue in India and plans to expand its entity by the FY22 to 1500 crores as per its goal, says Varun Chaudhary, the Managing Director of CP Corp Global.

    Shifting Consumption patterns of food
    The marketing strategy of Wai Wai noodles
    FAQ

    Shifting Consumption patterns of food

    The pandemic has changed many things. We have shifted from work to office to work from home. Wearing formal, but now comfortably sitting in your PJs. Sitting and working from home is hectic, and you look for snacks that can be cooked or made instantly.

    Where Wai Wai noodles come into the picture. The brand has been existing for so long with such a strong fan base in Nepal. How has it managed to get going for a long time?

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    The Marketing Strategy of Wai Wai noodles

    Inbound marketing

    This strategy is based on the three principles i.e., attract, engage, and delight your consumers. It’s somewhat similar to digital marketing. The initial stages consist of creating content and experiences that the audience, finds relatable to attract them towards your business. Later, engaging them with different tools to delight them.

    Relationship marketing

    Wai Wai shares a good relationship with their consumers. They create contests and other fun activities to engage with them on a one-to-one basis, with rewards They also curate fun activities for interacting with their audiences like #NoodleDoodle, #WIC (What’s Indian cooking), and #CWWC (Catch Wai Wai cup).

    Multicultural marketing

    Talking about the fan base that the company has in Nepal. How do you think the company created it? Of course, it is obvious! They planned it long ago as they were looking for a good place with a geographic area that in some ways would be relevant to the product they were launching.

    People of Nepal, belonging to the hilly areas of Nepal share a common resemblance of culture with their love for the company’s product. The northeast accounts for more than 60% of the market share in India itself.

    Global marketing

    Wai Wai has a plan and a target ahead. To grow bigger and better in the coming year and plan to set up new manufacturing units to achieve the Organizational goal of becoming an Rs.1500 crore entity by FY22. That also means that it could be visibly catering to audiences beyond India. The business could also work wonders in Singapore, China, or Japan, keeping in mind the cultural factor. It could be a huge success if the brand established its position strategically.

    Influencers and Micro-influencers

    Including the recipes shared by the fans, Wai Wai has reposted them on their reels. It not only includes fans but also influencers and micro-influencers alike, who have a love for their noodles and are foodies on Instagram to increase their reach. Which includes pages like @sassinmyspoon, @thefoodanddrinkdiaries, and influencers @iamsukhmanibedi, who is a singer, songwriter, and actor.

    Buzz marketing

    They create content with a message that is clear, concise, and relevant for their growing community. Creating a buzz around their content.

    Content marketing and Video marketing

    Content marketing plays a major role along with inbound and digital marketing. It can ensure that your audience keeps coming back to you for the content that you create, publish and distribute among them.

    Wai Wai has an average of around 600-1000 views on their IGTV videos on Instagram. It actively is involved in giving out recipes for their noodles. It is also using the reels feature to its advantage, smartly using it to wish the audience on the festivals celebrated in India.

    Social media marketing

    Social media marketing or having an active presence on social media, Having consistency and engaging with your audience on a more personal basis. Wai Wai has been using Instagram, Twitter and Facebook effectively to market its product out there consistently. Not only the brand is promoting and marketing its product. But also entertaining their consumers to engage with them.

    Wai Wai on Twitter
    Wai Wai on Twitter

    Innovation

    Noodles can’t just stick to being noodles here. They are innovating creative ideas and sharing them on their social media platforms. This includes Sambariya Stir Fry, Noodle Thepla Wrap, Vegetable Noodle Upma, all traditional Indian recipes with a twist.

    They have come up with the #WaiWaiTwist. They also have different flavors for different market segments like Chicken and Masala Atta Noodles, Curry delight, and more. Not only that, they are doing away with ideas of stereotyping, with their creative ad campaigns.

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    Want to thrive your business?

    Take it from the story of Wai Wai.

    FAQ

    Is Wai Wai from Nepal?

    Wai Wai noodles is produced by the Thai Preserved Food Factory, Co., Ltd. (TPFF) in Thailand and by the Chaudhary Group in Nepal.

    When was Wai Wai founded?

    Wai Wai Noodles was founded in 1972 in Thailand.

    What is the market share of Wai Wai noodles in India?

    Wai Wai noodles has 20 per cent of the instant noodles market in India.

  • How to Find App Development Partners for Your Startup

    Creating a startup comes with both making your ideas come true and dealing with issues that may arise along the way. This is where having an app development partnership in your business comes in handy. Searching for the right person can be a tough task, but in this article, we gathered the best methods that will help you on the way to cooperating with the best app development partners.

    Why having an app development partnership is important?

    Before jumping right to all how-tos, let’s start with the why questions. There are many inconveniences that come with choosing the wrong app partner. For example, you can have problems with developing your product or receive a finished product with a lot of bugs and bad quality. These things can result in wasting your money and time and not getting the results you hoped for. This is especially important to remember if you are new to a startup and business world because having the wrong app development partners may cost you losing your reputation.

    Because of the reasons above, we suggest you go through our recommendations that will help you avoid the pitfalls and find the right software development partner for your startup.

    The right app development partnership can:

    • Speed up the growth
    • Lead to more stability
    • Contribute to better team and communication skills
    • Help to minimize expenses

    Now when you understand the importance of hiring the right team, let’s discuss the steps towards the ideal cooperation.

    Step 1: Make sure you know what you need before getting to work

    It is important to make sure that you know all details and what you really need for your team, startup, or services beforehand. Prepare the key information about your project, which you are going to delegate to a potential software development partner. Clarify on the app you want to create and your goals regarding it. The following questions may help:

    • What problems do you want your app to solve?
    • Who are your target users?
    • Will the app be developed for Android or iOS, or both?
    • What’s your budget?

    After gathering all information and answering these questions to yourself, you can proceed to Step 2.

    Step 2: Prepare questions for potential app partner

    The vendor selection process is not easy because you are responsible for who will be part of your team. It can be overwhelming as there are a lot of questions you can ask. For this step, we suggest some relevant questions, which may come in handy when searching for a successful software development partnership.

    • Can you show some of your completed works?
    • Do you have software development experience in this industry / with this type of software?
    • What is your ideal app development process?
    • How do you achieve a better user experience?
    • What kind of methodologies do you use?
    • What tech stack do you recommend to implement the desired functionality?
    • Do you write unit tests for your code?

    It is important to trust the people you choose. Each professional should match the criteria needed for your startup. If you have the opportunity, check the companies they used to work for and try to find out more about their workflow and how they collaborate within the team. And don’t forget to learn about their payment terms and the costs of developing the app.

    Step 3: Use social media networks or specialized websites

    We live in a world of quickly developing technologies, so why not use them in this case as well? There are many resources that can help you in searching for the right app development partnership. Well-known Dribble can be useful because you’ll be able to see the developer’s work first and discard not suitable candidates. If you are looking for a partner to grow your business with, CoFoundersLab, or Upwork is the right place for you. Services like Waxidea and Startup Weekend focus mainly on startups and helping in finding software development partners and growing your network. And if you need to check the company’s reviews use Clutch.

    Step 4: Ask around

    Don’t be afraid to reach out for help from other people. Most likely, someone from your circle knows the right person for a software development partnership or knows someone who knows. You can start by telling people about the startup, ask if they know professionals with needed expertise, visit coworking spaces and be open to suggestions.

    Step 5: Search for app development agencies

    There are many app development agencies that can provide programming services, professionals with relevant experience, and industry knowledge you need for your business. They can staff a complete team for developing a mobile app. But the question arises, which company is better to work with? And how can you know they are reliable?

    The app development agency should have experts that know how to develop your idea in the best possible way. They should try to maintain the right software development partnership with you and understand your business. Here are some tips that will help you along the way:

    Search for the information

    Start with searching the information online, through social media, references, or ask people who already used app development services. Make a list of the agencies you find most suitable for the project, and write out all their cons and pros.

    Check their portfolio

    Checking the portfolio is an important step here because it will help you identify what the company does, their level of technical expertise, the scale of their previous projects. You can find out if they worked with products similar to yours and this will help in removing vendors that are not suitable for your business.

    Find reviews

    Nothing can say more about the company than the reviews of their clients. You can ask the agency for contacts to clients that had similar projects to yours, or find reviews online. If the company has is ready to present successful projects and introduce you to happy clients, this means you can move to the next step with them.

    Ask for app demos

    Ask the company to present you with a few of their completed projects. This will give you a better understanding of what the company is capable of doing.

    Step 6: Discuss the app development cost

    Another significant step to take is discussing the app development cost. Ask about their payment terms and the costs of developing the app. The cost will vary depending on what kind of app you are building, operating systems you want to support, etc. You can check approximate costs with the link we provided, but it is important to understand that a high price doesn’t guarantee high quality, but don’t be lured by the lowest price as well. Choose the company that can clearly say how long each stage of the development process will take, how many specialists will be engaged. This proves that they understand what result you expect from them and how to achieve it.

    Step 7: Conduct an Interview

    Nothing shows better whether the person is right for your startup and app development partnership than conducting an interview. You can hold it in person or online using services like Zoom. Not only this will help you see how they respond to your questions, behave in a professional space, but will also make sure that the person understands your goals and is interested in achieving them with you.

    If you work with a software development partner who has different goals, doesn’t understand your ideas, and isn’t as interested in developing the product as you are, most likely the project is doomed to fail. It will be difficult and unpleasant to work with someone who doesn’t share your views and is only interested in getting paid for the job done. So look for someone who is ready to invest their resources in your startup.

    Make sure they are looking for collaboration as well. If they are interested in a long-term software development partnership, chances are they will be more interested in the specifications of your business, who your startup’s customers are, and will look for the best ways to meet your expectations. The right partner will involve you in the development process, help you review the progress, and listen to your ideas.

    Step 8: Remote employee onboarding

    Because of the speed that technologies are developing now, apps have become our new normal, especially with the pandemic that pushed us into an even more technologically evolved environment. This increased the demand for remote employees. While it may seem difficult to connect with an app development partner, here is a checklist of things that will make the process better:

    • Introduce the employee to communication best practices in your organization
    • Help them connect with the team
    • Provide them with an onboarding plan
    • Set clear expectations
    • Let them know you’re here to help

    Finding App Development partner: Final Thoughts

    Just the idea of searching for the right app development partner can cause anxiety or worry. There are many companies ready to provide software development services, which is why it can be difficult to identify whom to trust with your business.

    The right partner has to provide the experience and knowledge required for your project. They have to know how to work in a team, and how to create and maintain a long-lasting app development partnership. The partner should also have the right mindset towards how to achieve your goals and make your ideas come true. And that is why the tips and steps above will definitely come in handy. They will help you distinguish who is right for your business’s future and who is not.

  • A Quick Guide to Firmographic Segmentation

    The complexity of data can’t be understated. The complex world of data is due to the unending volume, and types there are. For example, one of the most common types of data vital to the growth of a B2B company is firmographic data. Hence, as a business owner or data analyst, it becomes imperative to understand firmographic segmentation.

    As with other data types, firmographic details play a critical role in marketing, sales, and advertising. Data collection is all about deeper and accurate insight; firmographic segmentation aims at the same. Hence, in the fewest words possible, let’s explore this data type and the impact it can have on your business.

    What is Firmographic Data Segmentation?

    As a B2B company, firmographic data can put you ahead of the competition. Firmographic data is the information type that describes and categorizes other organizations you provide with products or services.

    The firmographic data details include geographical information, organizational type, numeric clientele details, technology, etc. Further in this piece, we’ll explore the core factors of firmographic segmentation.

    Like other data types, you want the firmographic data you collect to be as deep and insightful as possible. A rich data bank gives you competitive intelligence at the very least.

    Summarily, firmographic segmentation is the process of classifying business-to-business customers based on certain tags and attributes. Thanks to firmographic segmentation, your company can target customers with specific ads. Targeted ads have a higher chance of returns.

    Firmographic data is for B2B companies, while B2C companies target people using demographic data.

    Understanding the Core Factors of Firmographic Segmentation

    Variables and factors used in firmographic segmentation are numerous. However, we’ll take a look at some of them, so you can better understand the context of this vital data concept.

    Industry

    The ‘industry’ label is used in firmographic segmentation to classify companies based on what they do. The determinant of a company’s industry is the product or service they offer. As a B2B business, it’s important to target the right industry. Working with companies in industries where your product or service fits can skyrocket the returns you get.

    Through proper firmographic segmentation, your business can also easily service different industries. For example, when your clients have categorized accordingly, you’ll have no problem serving both the agricultural and fashion industries, despite the contrast in their needs.

    Location

    Location is also common as firmographic data. As a firmographic segmentation factor, location involves resident cities, countries, climate, culture, continent, etc. A consumer’s location can determine if your product will make sales and be appreciated. You need to understand the terrain in the different locations your business is based on to maximize it.

    Company Size

    The two main elements of company size are revenue and employee count. Understanding your customer’s financial state helps you place your product in the affordability range for them (if it still profits you).

    The US small business administration says that companies with less than 1500 employees are termed as small businesses. Thus, the employee count of a company reflects the company’s position.

    Sales Cycle Stage

    It’s important to know where a lead is in your sales funnel cycle. The extent to which you’ve gone with a particular client in the sales cycle determines the type of information you share. You must recognize and categorize based on if the potential client is at the; awareness, consideration, or decision stage. Understanding these stages will help you choose your marketing words carefully.

    Other factors of firmographic segmentation include; performance, executive title, performance, ownership framework, Growth trends, potential buying power, and departments.

    Importance of Firmographic Data Segmentation to Your Business

    As a business serving other businesses, you can’t slack on your data collection process. For instance, you can leverage firmographic data from core signals to understand your clientele better. Here are reasons why firmographic segmentation is vital to your business.

    Improved Market Targeting

    Marketing without data is like scattering your seeds into the air; the chance of reaching the right people is low. However, when you understand your target audience in-depth, you’ll reach them exactly where they are. As a result, the ratio of returns to effort becomes higher.

    Improved Customer Service

    Customers want the best service possible. Your competition is most likely offering the same quality of service and product as you. Hence, the main differentiating factor your potential customer will use is experience. The more firmographic data you have, understand, and leverage properly, the better.

    More Sales Potential

    When you understand the current situations in your target customers’ companies, you can make sales irrespective. Whether the company is growing or downsizing, you can still make sales when you play your cards right. These realities, as you’ll expect, require different approaches. For example, when a company is currently downsizing, they’ll need products and services that are cost-effective but with the innate ability to scale once revenue is back on track.

    As a business owner, you have to be tactically aware of the different situations.

    Final Take

    Like B2C businesses, B2B customers also want to get personal with products and services. Personalization of service and product experience is what will get you the market share you desire. Understanding the customers thoroughly is the first step in the right direction. Hence, firmographic segmentation.

  • What is Halo Effect and How does it apply to Marketing? (Explained)

    Every company exists for the sole purpose, for instance, expect reward for the service in terms of monetary or recognition in the eyes of the public. Marketing is another way to secure more people and to get to know more about your business. But focusing on SEO, CTAs or brand awareness won’t bring a heyday to your business. Here, Halo Effect really makes a great impact on your marketing.

    Brainwashing plays a crucial role in the Halo effect, as it is an effortless method to create fame overnight, whither? customers speak off good things, only if they have any positive experience. On the other hand, also defile your company, when some things went wrong likewise negative experience with the brand products.

    Pertinently, Halo Effect in Marketing is creating good terms regarding your services by engendering favouritism thoughts on customer’s minds.

    How Does the Halo Effect apply to Marketing?
    Pros and Cons of Halo Effect in marketing:
    Examples of Halo Effect in Marketing
    FAQ

    How Does the Halo Effect apply to Marketing?

    The Halo effect in marketing generates brand awareness, loyalty towards customers and brand strength at providing the best services.

    Brand strength

    The halo effect in marketing aids brands’ strength by establishing positive reviews or experiences on your products.

    Brand strength consists of to begin with Brand perception: The company should provide the best quality products to your customers, in order to gain their interest to purchase again in your company. Rather than spending tons of money in marketing, try to manufacture quality products to gain the trust of your customers.

    Moreover, the halo effect in marketing shows themselves as leaders in their industries by upgrading the product line of their company to compete against competitors.

    Brand awareness

    The company earns profit or reputation by rendering some services, and that services should be witnessed widely among your targeted customers. For instance, when you are frigging thirsty, the first product that will definitely strike your mind is Coke, right?. Ergo, the halo effect in marketing applies, when you are out with your friends and you are in a flummox to find a food restaurant, then one of your friends says ‘McDonald’s is the best’.

    Brand loyalty

    When the company recognised loyalty from the customers, then there is no going back. While gaining Brand Loyalty is quite demanding. Enhancing brand loyalty highly depends on the engagement of manufacturing quality products according to the interest of your customers and customers feedback or quick response.

    The halo effect creates brand loyalty by implanting favouritism on customers’ opinions, as this will help the customers to make a repeated purchase on your company.

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    Pros and Cons of Halo Effect in Marketing

    Ever wondered how one thing can be both beneficial and harmful? Our electronic gadgets, inventions and developments, etc. Likewise, the Halo effect in marketing has its own two sides of a coin: Pros and Cons.

    Pros of Halo Effect in Marketing:

    The Halo Effect is a kind of unpaid marketing technique that creates brand loyalty among its customers and thus helps the brands to retain their customers.

    Once a brand gains the trust of its consumers in terms of quality the price is insignificant to the consumers which helps many brands earn more profits.

    The brand’s new releases and even new ventures in other industries gain from the halo effect as people believe the products from the brand are worth their money and the quality is the same as the other product.

    The brand gains more customers through word of mouth and is differentiated from others and the halo effect also increases the brand’s equity.

    Cons of Halo Effect in Marketing

    The Halo effect is difficult to maintain as a product can be a success or a failure. Uncertainty is a factor that is constantly present when a new product is launched in the market.

    A negative experience of a product can do the reverse of the halo effect and damage a brand image and create an obstacle in the minds of its customers while purchasing other products from the brand. This is known as the Horn effect.

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    Examples of Halo Effect in Marketing

    The Halo Effect in marketing works in two ways- Positive effect or negative effect.

    For instance, Coca Cola gained recognition in the 80s standing as the best soft-drinks of the era. But at the same time, Coca Cola witnessed its bad side, when the controversy about the tinge of cocaine in it caused degradation to the brand and was even banned in North Korea and Cuba.

    Therefore, the Halo effect in marketing applies by imputing positive reviews or experience of your brand by accelerating awareness, loyalty and brand equity.

    Another great example of the Halo effect in marketing is: After the release of Apple iPods, it was speculated that there would be an increase in the sales of MacBook laptops.

    The success of iPods paved the way for this speculation to be true. In this case, the success and favouritism of the iPod by the consumers created a halo on the MacBook and other Apple products.

    Conclusion

    How many times have we bought other products from the same brand just because one product was good, like just because the paste is good in cleaning our teeth, why do we also tend to buy the toothbrush from the same brand even though the bristles are rough on our teeth and gums? Oh, I know it now: THE HALO EFFECT.

    The halo effect has been a major factor for brands and companies to make profits as the halo effect in marketing increases the visibility, reputation and equity of a company which is key to the success of any business.

    FAQ

    What is the Halo Effect in marketing?

    The Halo effect in marketing is a concept in which a person tends to favour other products from a manufacturer after experiencing positive feedback from another product from the same manufacturer.

    How does the Halo effect work?

    The Halo effect in marketing is seen when a brand captures the favour of the consumer market by creating a product that gives a positive experience to its customers which in turn leads the consumer to trust the brand without proper reasoning and favour the brand’s other products as well.

    What are the examples of the Halo effect in marketing?

    One example of the Halo effect in marketing is: After the release of iPods, it was speculated that there would be an increase in the sales of MacBook laptops. The success of iPods paved the way for this speculation to be true. In this case, the success and favouritism of the iPod by the consumers created a halo on the MacBook and other Apple products.

  • Breakthrough in the Travel Industry: Tale of Trivago

    What makes a startup idea remarkable is its potential to solve a problem and make people’s lives easier. The issue does not have to go unaddressed; the question is how effectively it can be addressed. Many company models are based on this notion. With that in mind, allow me to share Trivago’s amazing startup story and its business model with you.

    About Trivago
    How was Trivago started?
    Founders & core team
    Business model of Trivago
    How does Trivago earns Revenue?
    What makes Trivago unique?
    Competitors of Trivago
    Trivago: Challenges and plans
    FAQ

    About Trivago

    Trivago is a multinational technology company based in Germany that specializes in internet-based hotel, lodging, and metasearch services and products. It was Germany’s first hotel search engine, and it is now one of the country’s fastest-growing businesses, with profits doubling since 2008.

    Expedia Inc. holds a majority of the equity in the firm. A hotel search company with the main objective of changing the way people search for and compare hotels online. It also offers hotel advertisers to promote their brand on the Trivago website providing them access to a broader target audience who visits its website.

    How was Trivago started?

    Earlier, booking a hotel used to be complicated. There used to be frauds and people were not able to get better deals. Looking at this problem gave rise to new startups such as Expedia, Orbitz, etc. that allowed customers to compare prices and get the best deals.

    People liked this idea and these startups quickly gained traction. Rolf Schrömgens, Peter Vinnemeier, and Stephan Stubner saw this as an opportunity and they came up with this new hotel aggregation site which they named Trivago.

    It was founded in 2005 in Dusseldorf, Germany where its headquarters are. It was first established in a garage. It was like a bootstrapped company with very little external capital and on going away with little steps and small steps forward. They grew very slowly in the beginning but eventually gained momentum.

    Trivago has evolved from a €1.4 million seed investment to become one of Europe’s most renowned unicorns. Today, they have 3 million hotels and alternative accommodations, search through more than 250 booking sites, active in more than 190 countries on 54 platforms, 33 languages, and more than 100 filters that you can apply to your search.

    Founders & core team

    Founders:

    • Rolf Schrömgens
    • Stephan Stubner
    • Peter Vinnemeier
    • Malte Siewert

    Trivago’s core team:

    • Axel Hefer – Chief Executive Officer (CEO)
    • Anja Honnefelder – Chief People Officer (CPO)
    • Matthias Tillmann – Chief Financial Officer (CFO)
    • James Carter – Chief Product and Technology Officer (CTPO)
    • Alexander Forstbach – Chief Data Officer (CDO)

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    Business model of Trivago

    Customer segments:

    Trivago has 2 types of customers. The first type includes partners like hotels, online travel agencies, and media who promote their products on the Trivago website. The second type is guests like travelers who compare offerings and pricing before making a purchase decision to book their desired hotel.

    Key partners:

    Hotels, online travel agents, and guests are among Trivago most important partners, but so are media and advertising firms, payment processors, and investors and stakeholders.

    Key activities:

    Based on key resources, Trivago acts as a platform for hotel brands to display their offerings and customers can find what they want. It manages guest and hotel networks, develops its products, and conducts sales and marketing.

    Channels:

    Trivago main channel is its website, although it communicates with brands through the sales team. It promotes its services through its web-based social networking pages, TV, and web-based advertising.

    Value proposition:

    Availability:

    The Company promotes transparency by allowing users to contribute to the content on its website. They can add content to hotel and cabin brand portrayals, complete missing brand profiles, and change profiles for quality assurance.

    Personalization:

    The platform encourages personalization by allowing firms to customize their profiles in a variety of ways.

    Convenience:

    Users can search for a variety of alternatives and narrow down results using hundreds of filters available on the platform.

    Brand/positioning:

    Because of its success, the site has developed a strong brand. It receives 120 unique visitors every month, indicating that it has a large user base. Trivago is one of Germany’s best and fastest-growing startups, with its advantages multiplying since 2008.

    Customer relationship:

    Trivago is an entirely automated platform, thus users have very little or no engagement with the team. The site’s FAQs answer the majority of questions, and email support is available for personal assistance.

    Key resources:

    Trivago most valuable assets are its website and application through which customers can search for hotels. Its highly trained workers are another crucial resource for maintaining and updating the website. In addition, being a startup, it is reliant on investor funding, which raised $53.8 million in December 2010.

    Cost structure:

    Technology setup and running costs, personnel pay, sales, and marketing divisions all contribute to the overall cost structure.

    How does Trivago earns Revenue?

    We know Trivago doesn’t offer tangible products or has no tie-ups with other hotels. So you might be wondering how it makes money. Here’s how.

    Listings:

    Trivago charges commissions to online travel agencies for promoting their services and hotel rooms on the Trivago website.

    Services:

    Trivago earns revenue by managing the listings i.e. the presence and visibility of hotel brands on their platform. For this, they have a feature known as Hotel Manager PRO wherein hotel brands need to pay the subscription fees.

    Cost Per Click:

    Trivago links itself to other websites like Oyo and Make my trip. When people visit the Trivago website and want to book their desired hotel, they get redirected to the hotel’s website.

    Trivago is promoting the hotel’s products and services and driving a sale for them. They are referring it to customers and in turn charge commission for doing the same. This is known as affiliate marketing or Cost Per Click (CPC) wherein they get paid whenever customers click on a link of that hotel’s website and their entire revenue model is based on this.

    A customer is referred to the website of the advertiser when the user clicks on the deals present in the search results. Trivago charges money for every referral. This model is known as the Cost-Per-Click (CPC) model.

    What makes Trivago unique?

    Compared to other hotel search engines, Trivago’ USP is its product focus: hotel search. It doesn’t offer other features like car rentals or booking flights just the hotel price comparison making it less confusing for customers. It benefits Trivago as well such as:

    • They have no conflict of interest.
    • Can focus on developing their products.
    • Be committed to helping hoteliers compete and travelers locate their desired hotel.

    Competitors of Trivago

    The top three competitors of Trivago are:

    Tripadvisor:

    Trivago’s main competition is Tripadvisor. It is a publicly-traded firm based in Needham. The company was founded in Massachusetts in the year 2000 and works in the travel agency business. It employs 1745 people more than Trivago. Tripadvisor has revenue of $366.5 million dollars higher than Trivago. It has raised a total of $3712.8 million, which is higher than Trivago.

    Booking.com:

    Booking.com is another major competitor of Trivago. It was created in 1996 and has its headquarters in Amsterdam. It’s in the field of web-based software. It brings in $6798 million dollars more than Trivago. It employs 19,466 people more than Trivago.

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    Trivago: Challenges and plans

    The impact of the coronavirus outbreak on the travel sector has been catastrophic. Countries are still fighting the dreadful pandemic, but communities and economies are slowly rebuilding and recovering.

    The recovery process for the travel industry will be complicated but let’s see how Trivago faced these challenges and how it will reposition itself for the post-pandemic era.

    In the fourth quarter of 2020, Trivago’s earnings and revenue plummeted. It lost €12.3 million in adjusted EBITDA, compared to a profit of $70 million in 2019.

    Despite this considerable decline, Trivago saw this as an opportunity to innovate and bring back the old and think about the new customers as well. Instead of promoting the most popular destinations, they started promoting the hidden gems i.e. smaller cities that are not on the top of your list.

    The destinations from where you start keeping it shorter or local trip. This is their new product launch i.e. new local trip offerings which are more inspirational compared to their core product which requires you to know where you want to go.

    This recent diversification beyond traditional metasearch and new launches will help them target a broader audience and not just the ones looking for hotels at low prices. They are working on the second big release and will be coming up with new product launches.

    Final Thoughts

    Being one of the world’s most burgeoning hotel search engines, it has made it possible for us to find the best hotel at the best price. The company is focused on reorganizing and streamlining its business in light of the current volatile tourism industry. I must say, Trivago nailed the market demand and came up with a fantastic startup concept that was not just our desire but also the urgent need of the hour.

    This was all about Trivago and its business model.

    FAQ

    Who is the founder of Trivago?

    Rolf Schrömgens, Malte Siewert, Peter Vinnemeier, and Stephan Stubner are the founders of Trivago.

    Is Trivago an Indian company?

    No, Trivago is an German multinational company that specializes in internet-related services and products in the hotel, lodging and metasearch fields.

    Who are the competitors of Trivago?

    Trivago competitors include Booking.com, Tripadvisor, KAYAK and Expedia Group.