QR Codes - A Boon or Bane for Indian Marketers?

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Case Details:

Case Code : MKTG300
Case Length :18 Pages
Period : 2012
Pub Date : 2012
Teaching Note : Not Available
Organization :Not Available
Industry : Not Available
Countries : India

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Introduction Contd...

Among them QR codes14 became popular due to their fast readability and large storage capacity. The impact of QR codes on marketing was found to be very high in countries like Japan, China, and South Korea among others. In Japan, about 73.5% of the mobile users tried QR codes by 2005.15 In 2008, marketers tried to replicate the success of QR codes in India and other countries and gradually started using them in advertisements. In 2011, Google16 along with Ipsos17 , conducted a market survey on internet usage through Smartphones. The study showed that 56% of Indians accessed the internet on their Smartphones, whereas in U.S. the figure was 53%.18

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

According to the survey, India was 3rd in the number of Smartphone internet users across the world in 2012.19 The survey also showed that India was one of the fastest growing countries in mobile usage with about 0.9 billion mobile phones used in 2012.20 A survey conducted by Gartner21 in 2012 on the mobile market reported that the mobile handset market in India experienced 6% growth, whereas the Smartphones market had seen a 17% growth.22

Analysts said that Smartphone users were highly influenced by the black and white matrix structures (QR codes) which were frequently found on billboards, newspaper ads, and many other places. Marketing researchers started targeting Smartphone users through these QR codes.

Companies using the QR code for marketing in India experienced both positive and negative effects. So, analysts considered that the QR codes had high potential and the marketers should be very cautious in utilizing them optimally. Experts were skeptical, wondering whether the QR codes would turn out to be just another fad or would become a revolutionary tool in mobile marketing, helping the Indian modern retail sector.23

Excerpts - Next Page >>

14] Quick Response Code or QR code is a two dimensional (2D) barcode capable of holding a large amount of data and can be decoded or deciphered at high speed on a single scan. The code consists of black modules (square dots) arranged in a square pattern on a white background. The information encoded can be made up of four standardized kinds ('modes') of data (numeric, alphanumeric, byte/binary, Kanji), or through supported extensions, virtually any kind of data.
15] "GWI 6 Trends Preview - QR Code Mania in Asia," www.onlinemarketing-trends.com, December 20, 2011.
16] Google is an American multinational corporation incorporated in 1998 and provides internet related services.
17] France based Ipsos is a global market research company.
18] "More Smartphone Users in India Access Internet than in America," www.articles.economictimes.indiatimes.com, May 2, 2012.
19] Top 20 Internet Countries - 2012 Q1, With Highest Number Of Users," www.internetworldstats.com
20] Ran Ju, "Advertisers and Publishers Look to Tap Rising Smartphone Use in India," www.kbridge.org, June 28, 2012.
21] Gartner is USA based information technology research and advisory company.
22] Ran Ju, "Advertisers and Publishers Look to Tap Rising Smartphone Use in India," www.kbridge.org, June 28, 2012.
23] Aruna Sanagavaram, "QR Codes: Are You Using Them Yet?," www.indiaretailing.com, June 5, 2012.

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