Pitch July 2012

Volume IX Issue 9 | July 2012

` 75

WHAT’S YOUR

YQ Y Q?

Do Indian marketers understand the youth well? What’s their perception about them?

What’s their Youth Quotient?

Pitch | July 2012

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INSIDE COVER STORY

Pitch Volume IX, Issue-9 July 2012 Publisher & Editor-in-Chief Annurag Batra Editor & Director Amit Agnihotri Director Nawal Ahuja

EDITORIAL TEAM

Consulting Editors

Vinod Behl Noor Fathima Warsia

Deputy Editor

Dhaleta Surender Kumar

Assistant Editor

Ruchika Kumar

Principal Correspondent

Pallavi Srivastava

Correspondents

Arshiya Khullar Abhinav Mohapatra

Art Director

Jasper Levi

Graphic Designer

Joby Mathew

Photographers

Vilas Kalgutkar (Mumbai) Suresh Gola (Noida)

AD SALES

Rohit Sardana Abdulla M Mazumder Varnikaa jain Sneha Walke

9811377592 9871609348 9769153087 9845541143

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What's your YQ?

How well do Indian marketers understand the Indian youth? What are the activities they are doing to catch their attention?

0FFICES

NOIDA: B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Phone: (0120) 4007700 Mumbai: 301, Kakad Bhavan, 3rd Floor, 11th Street, Bandra (W), Mumbai - 400 050 Phone: (022) 2640 3303/09/14/16 Bengaluru: Flat No. 1,062, 1st Floor, 2nd Cross, 6th Main Road, HAL 2nd Stage, Indira Nagar, Bengaluru - 560 038

FEATURES

10

Tailoring on the go

With its Made to Measure brand offering, Raymond is looking to capture the under served segment of tailormade clothing. But is there enough scope in this segment?

CIRCULATION/DISTRIBUTION

Dharmender Singh (Noida) Circulation & Distribution Head - 9999419197 dsingh@exchange4media.com Anandan Nair (Mumbai) - 9819445200 anair@exchange4media.com On News-stands ` 75

Cult recreated?

12

Vespa is making a come back on the Indian streets, and this time as a lifestyle brand. Will it be able to replicate its international magic here too?

www.pitchonnet.com Printed and published by Annurag Batra on behalf of Adsert Web Solutions Pvt Ltd B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Printed at All Time Offset Printers, E-53, Sector-7 Noida, Uttar Pradesh - 201301 An exchange4media Publication

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Are marketers ready to hit a goal?

58

The cricket crazy nation seems to be catching on a new sports frenzy: football. How are marketers milking this latest sport infatuation of the country?

Pitch | July 2012

Cltr + Shift

60

Will HP’s strategy to shift focus to youth pay dividends? Or is it too late?

For the love of taste

86

Unlike in developed markets where non-alcoholic beer exists as a category, it is virtually non-existent in India. Clausthaler is trying to fight the odds and educate the people. How?

INTERVIEWS

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“I attend about 40 % of customer issues myself” Len Curran Vice President, Sales & Marketing, Renault India

“Volvo brings Scandinavian culture to its cars”

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Sudeep Narayan Director, Marketing and PR, Volvo India

PITCH CMO SUMMIT 2012 Regional power: The South story OTHERS Kunzum Cafe, Fortis, Aer, Heineken Officer’s Choice SURVEY: Dual Sims COLUMNS Yashraj Vakil Sandeep Karwal Deepak Bhatt N. Chandramouli Rohit Dadwal Suparnaa Chadda Annurag Batra Pitch | July 2012

90 2012

06, 73 84, 85 88

The youth this week As we sat down to flesh out our cover story, on how the Indian marketers perceive the youth and how well they understand the youth, there was one pertinent question – Are we overdoing it? However, when we really got it into the business, we were sure, ‘No, we aren’t’. We’d posed a question to all marketers featured in our cover story: How has the consumer behaviour of the youth changed over the last one year or so? Channel V’s Prem Kamath, just put it rightly: “How the youth has changed in the last one week? should be the apt question.”

The attitude of the Indian youth is changing at a rapid pace, and it is becoming increasingly challenging for marketers to “look cool” in their eyes. Catching them on TV, print and outdoor is passe. While many marketers are still waking up to the internet – Facebook and Twitter, and the youth has got hooked on to these portals, what has changed is the way they access these websites. Hardly, have the marketers updated themselves with the nuances of the digital world on the 15-inch screen, the youth meanwhile, have already changed the way they consume the digital world. They are on their smartphones, putting more pressure on marketers to update and upgrade themselves with technology. That does not absolve them of not focusing on the larger screen. Just that they’ve got another platform to look after. Have a website for a smartphone, have apps – and don’t forget that there is no single binary for these apps.

You have to cater to all – IOS, Android, Windows, Bada or even for that matter the old Symbian. There will have to be as many distinct binaries as many the OSes are.

And brands can no more dictate to the youth. If they have to earn their respect, they have to engage them – through music, sports, adventure and all. Read more inside.

78 82 56 62 71 72 99 100

Amit Agnihotri

amit@pitchonnet.com

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LAUNCHPAD

Gadgets & Gizmos LAVA C31

DELL XPS 14 ULTRABOOK

Value for money

Going slim What: A petite yet powerful laptop

by Dell, the XPS 14 packs a punch by delivering a lightweight thin body and a long battery life to support those folks who are always on the move. The third generation Intel processor is the heart of this device that claims to boot up 33 percent faster than its predecessor. The starting model is pegged at around Rs 79,000.

Specifications: The XPS 14 comes with a 14 inch screen, is 20.7 millimeters thick and weighs about 2.1 Kilograms. The device has two variants, the Intel i5 and i7 processor with DDR3 memory up to 8GB. The XPS 14 has a 900p HD viewing experience with an

optional NVIDIA graphics card.

What: LAVA has launched a pocket friendly mobile phone with a pocket friendly price. The touch screen C31 comes loaded with apps for music, social media like facebook and games such as angry birds. It has an eye catching coloured body and screen.

USP: XPS 14 gives a three year Complete Cover Accidental Damage and boots up in less than two seconds than regular hard drives.

Background: The XPS or Xtreme Performance System was Dell’s high end computing products with high performance and gaming capabilities. The XPS was first launched as a series of PCs in 1993. 

HTC ONE S

The first choice What: One S is yet another offering from the HTC stable, a part of its One series. The smartphone is loaded with features like an eight mega-pixel camera, light and thin design. It’s merely a few millimeters wider than a credit card and one third in thickness of an inch.

Specifications: One S claims to have 10.5 hours of talk time and 13.2 days of standby

time. It comes with a 1.7 GHz Dual core CPU with 1GB RAM. The smartphone runs on an Android platform (Ice Cream Sandwich and HTC Sense 4) and weighs 119.5 grams including the battery.

USP: Priced at Rs 33,590, the eight mega-pixel camera lets you shoot several pictures in one go through its Rapid-Fire feature; and simultaneously, do a video recording of the highest quality i.e. 1080p.

Background: The One series from HTC is all about enhanced viewing, sleekness and performance. Besides One S there are two more models in the series namely, One X and One V. One S has been code named as Ville.

HTC has lately shifted its focus to emerging markets like India and China. In an interview to Wall Street Journal, Peter Chou, Chief Executive of the Taiwan based company clarified that the company is keeping focus on the mid and high segment.” 

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Specifications: Tthe C31 has a 1.3 megapixel camera, 4GB storage extendable up to 8GB, has video playback that supports mp3 and mp4 formats; all this bagged in a 2.6 inch display screen.

USP: A treat for the music lovers, the C31 is built with dual loud speakers and claims to give a clear sound experience to its users. Pegged at Rs. 2499, the touchscreen feature phone has applications like LAVA Buddy for networking Background: An Indian mobile manufacturer, Lava made a name recently by bringing the Xolo X9 in collaboration with Intel. The company caters to the value for money oriented individuals who want a smart and powerful instrument at an economical price. 

Pitch | July 2012

FUJINON XF LENSES FOR X PRO-1

Shutter bug What: FujiFilm has launched a series of lenses designed only for its X Pro-1 camera. The three lenses are available in 18 mm 35 mm and 60 mm. The lenses are for enhancing imaging capabilities and lie in the premium category of lenses by the company.

Specifications: The 16 mm has an ap-

erture range of F2-F16 and a minimum focusing distance of approx 18.0cm, the 35mm of F1.4-F16 and approx 28.0cm and the 60mm has an aperture range of F2.4-F22 and a minimum focusing distance of approx 26.7cm. excluding the lens cap and hood. The lenses vary in weight from 116 grams to 215 grams.

USP: The three lenses are designed for premium image quality and maximum performance. The lenses are specifi-

IBALL SLIDE 3G 7307

cally made to cater to the high resolution feature of the X Pro-1 camera. All the lenses give reduced chromatic aberration for a crystal clear picture and the 1/3 aperture ring makes it easy to operate the all glass aspherical lenses.

Background: FujiFilm Holdings Corporation is based in Tokyo, Japan is into electronic imaging, photofinishing equipment, medical systems, life sciences, graphic arts and flat panel display materials among others based on a vast portfolio of digital, optical, fine chemical and thin film coating technologies. The company was among the top 20 companies around the world to be granted U.S. patents in 2009 and once had a global revenue of $23.5 billion. 

NINTENDO 3DS

An eye on masses

Are you game?

What: iBall has launched a mid segment budget friendly tablet that is sleek yet powerful. The Slide provides basic computing needs and operates on an Android 2.3 Gingerbread platform.

What: Nintendo has launched a handheld gaming device called 3DS XL. It features real 3D graphics and does not required special 3D glasses. There are two screens on the top and bottom of the portable device and a stylus compliments the device for optimum touch utility.

Specifications: The tab spans 7 inches in length and a full capacitive multi touch screen. With an 8GB internal memory, Slide bags a 1GHz processor and a 32Gb expandable mico SD memory card slot. WiFi, Bluetooth, HDMI out port, USB and OTG ports make it a device that can be potentially connected to anything.

USP: The Slide comes with 3G connectivity with Dongle support unlike its predecessors. The front 2 Megapixel allows the user to connect via Skype or use the device for video conferencing. Priced at Rs 16,499 the battery can support about six hours of music playback and 5 hours of video playback on its 1080 P HD screen. 

Specifications : The 3DS is loaded with a wide-screen LCD display, 400 pixels are allocated to each eye to enable 3D viewing, touch enabled lower LCD screen, one inner camera and two outer cameras, wireless Communication2.4 GHz, Circle Pad (enabling 360-degree analog input) Touch screen, Embedded microphone, Camera, Motion sensor and Gyro sensor.

USP: The Nintendo comes with a 3D Depth Slider that enables smooth adjustment of the 3D level effect and the two outer 3D cameras let the user click pictures and videos in a 3D format like the human eye. The device has stereo speakers positioned to the left and right of the top screen that supports virtual surround sound. 

Pitch | July 2012

Compiled by Abhinav Mohapatra -abhinav@pitchonnet.com

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LEISURE KUNZUM CAFE

Free for all Kunzum Cafe is a pay-as-you-like cafe which works on the participative pricing marketing strategy. What’s more to this leisure cafe concept?

By Arshiya Kullar

T

ucked away in the rusty, designer by-lanes of picturesque Hauz Khas Village in Delhi sits Kunzum Cafe, a cosy cafe with tasteful interiors.

Far removed from the scores of cafes thronging the capital city, with a similar look, ambience, and menu, Kunzum Cafe has been able to hold its own, with its one-of-a-kind proposition, which is an unconventional pay-as-you-wish pricing route for its customers.

Positioned as a pay-as-you-like travel cafe, Kunzum Cafe was started by travel writer, photographer, and former journalist, Ajay Jain in 2010 and remains perhaps the only such hub for travel enthusiasts.

Even before the cafe was launched, brand Kunzum has been around since 2007, when Jain started a travel blog with the same name, derived from Kunzum Pass in the Lahaul-Spiti valley in Himachal Pradesh. It has also been extended into a publishing label with books on travel and an online travel magazine.

Being an avid photographer, Jain wanted a place where he could showcase his work as well as build a brand that would bring together people with such likemind creative pursuits.

This is how Kunzum cafe was born.

In Jain’s words, it is a ‘face to face book of travel’ where people can swap travel stories, plan travel trips, and meet fellow enthusiasts over cups of coffee.

Talk, eat, drink and leave Apart from serving as a brand which caters to all aspects to travelling, the pay as you wish concept has got people talking.

The brew and cookies (the only items on the menu) are on the house, and visitors are free to pay what they desire.

Explaining the rationale behind this novelty, Jain says, “We wanted it to be a place where the ownership rests with the company and did not want any entry barriers for anyone coming in.”

While such a move certainly arouses customers’ interest and drives more

Positioned as a pay-as-you-like travel cafe, Kunzum Cafe was started in 2010 and remains perhaps the only such hub for travel enthusiasts 6

curious visitors to the cafe, how is this business model sustained? Surprisingly, according to Jain, this idea has actually paid off for him, and whatever amount people pay willingly is enough to sustain the running costs of the place. It also helps that the cafe requires very basic finances owing to the limited menu and the team from Kunzum’s other operations double up as cafe managers.

In fact, as a marketing principle, this strategy is similar to the concept of participative pricing, wherein the consumer plays a crucial role in the pricing decisions. This not only avoids disadvantages associated with conventional pricing but also creates a friendly exchange between the buyer and the seller. This mostly happens in a competitive market place.

This probably explains why Jain wants to continue with this winning formula

Pitch | July 2012

As a marketing principle, this strategy is similar to the concept of participative pricing, wherein the consumer plays a crucial role in the pricing decisions

and has plans of neither making it a paid menu nor expanding its menu offerings, despite the temptations coming his way.

“We are not in the F&B business. We want people to focus on travel, talks, and the creative stuff that we do around photography, films, and music. They can go for food anywhere, but they can’t go anywhere else for all of this,” he explains.

An ‘experiential’ cafe The cafe houses Jain’s photographs, the books he has authored along with a huge library of travel books, magazines, and pictorial catalogues for visitors to browse through. The cosy ambience gets an added personalised touch with a pin-up board on which guests leave scraps of memories from their travel sojourns.

The cafe, which on an average, sees a daily footfall of 100 people also

Pitch | July 2012

“We are not in the F&B business. We want people to focus on travel, talks, and the creative stuff” Ajay Jain Founder, Kunzum Cafe

organises various events like film screenings, music gigs, book launches, travel talks, poetry sessions and photography workshops to increase visitors as well as ensure a regular stream of revenue.

Such activities attract a certain kind of a consumer profile which is in line with the cafe’s intended target audience. According to Jain, the visitor profile broadly includes creative, independent professionals, expats, foreigners as well as students. Though the latter contributes only 15 per cent of the cafe’s footfall.

One of its prime marketing mediums has been the digital platform. Kunzum has a vibrant community on Facebook, Twitter, and Pinterest, which helps to connect with consumers as well as spread word about the various events.

However, more than anything else, what has worked the most for the cafe is word of mouth advertising. “A majority of people who walk in, say that they have heard about it from a friend,” says Jain.

Recently, Club Kunzum has also been launched, which is a paid membership club that organises activities like heritage walks, food walks, and travel tours.

Jain targets a member base of 1,000 people by the year-end from the 100 members at present.

Launched almost two years back, Kunzum, rather than fading away into relative obscurity, still manages to arouse the curiosity of people. Jain has plans of replicating the successful venture in other places and is looking at opening Kunzum cafes in Gurgaon, Bengaluru, Ahmedabad, Pune, Chennai and Kolkata, with his first priority being Gurgaon and Bangalore. However, he candidly admits that a new cafe would require an overhead of at least Rs 2-3 lakh a month, and will have higher running costs than those of the existing cafe. To raise money for this expansion, Jain is looking at revenues through workshops, advertising, and sponsorships as well as renting out the cafe space to select travel partners to offer some travel services. n -arshiya@pitchonnet.com

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MEN RAYMOND

Tailoring on the go With its Made to Measure brand offering, Raymond is looking to capture the under served segment of tailormade clothing. But is there enough scope in this segment?

By Ruchika Kumar

P

layers in the tailor-made apparels business are fast creating a following of loyal consumers with personalised offerings. Homegrown apparel brand Raymond is one such player that is attempting to milk this opportunity with its Made to Measure (MTM) offering. The company is banking on experiential marketing for reaching consumers.

Driving brand experience Recently, the company extended the concept of MTM out of the retail stores and launched a mobile version of the same.

The Made to Measure mobile vans will offer services on the go, starting with markets in and around Mumbai in the first phase. Later, the same will be implemented across India depending on its success in this market.

Explaining the rationale behind this, Rakesh Pandey, President-Retail & Business Development, Raymond, says, “The concept of MTM is for people who are looking for personalisation of apparels. Today, consumers are short of time to visit the stores and hence experience the concept of MTM.” Peshwa Acharya, Tech Entrepreneur and ex-CMO Reliance Retail, feels that as a concept it is a good move on part of Raymond, as it has understood the fact that brands today should be where the consumer is.

“Brand building in India is not any more about communication but more about brand experience, so Raymond is bringing the service to the consumer rather than the latter coming to the brand. I quite like it as a novel concept,” Acharya adds.

Raymond has launched mobile vans for its ‘Made To Measure’ brand. With this, the brand attempts to reach discerning consumers wherever they are 10

Promotional strategy The company also feels that unlike other initiatives that require promotional push, the mobile van itself is a promotional element. It is planning to roll out around 5070 more such vans by 2013.

Apart from the van itself, the brand has used mailers, PR activity and workshops at corporate houses to spread the campaign.

The activations inside the van have been strategically devised. The van reaches high foot-fall areas, like clubs, malls, corporate buildings, housing complexes and MBA institutes.

The right cut Since the MTM offering is premium in nature, the company is primarily targeting SEC A, male consumers but also is looking at individuals ready to pay a premium for quality products. “There is a discerning customer with a power of one kind of thinking. These are people who want a personalised shirt with personalised elements like buttons, monograms, cuffs, collars etc tailormade to their taste. And this can happen at any age as the mindset for such fine clothing is emerging rapidly in the market. If it is a discerning customer then he won’t mind paying a premium for that,” believes Pandey. Thus, the brand is positioned as an affordable luxury.

Bumpy ride?

The question, however, arises on its acceptance. “If the van moving in high traffic areas, gets stuck in jams or is placed in low-end market spaces, that will actually tarnish the brand’s image. The brand will have to be careful in terms of the market areas it places itself. Plus, it might not be possible for the consumer to shell out a premium fee for a mobile kiosk; he would

Pitch | July 2012

want to spend on a retail store where he can come back. Mobile vans are good for low-end products like flowers, books etc,” reasons the Tech Entrepreneur.

The other hurdle could be that consumers get their tailor-made products from known tailors, so while these mobile vans can serve the purpose of effective communication vehicles and also a medium of lead generation, experts like Peshwa are not sure if actual sales can happen at the vans.

Expansion plans On the positive side, experts feel that the move could initiate new buyers to try the MTM exclusive retail stores eventually.

Fashion Designer and Stylist, Anuj Lalwani feels that brand MTM has not been advertised as aggressively and Raymond needs to publicise the concept beyond the regular buyers. This is where the mobile van idea comes in. In fact, the main reason that triggered the initiative was Raymond’s success in the MTM business. Though not divulging the revenue contribution and market share, Pandey says, “MTM since its inception has created great consumer pull as seen by the repeat purchases that are in excess of 40 per cent.”

The company is planning to open 7080 more stores, including exclusive brand outlets (EBO) and shop-in-shop stores by March 2013. It is also looking to expand the exclusive MTM stores into metros and Tier II towns. Currently, the EBOs are present in Mumbai, New Delhi and Dubai. The other shop-in-shop outlets are present in Kolkata, Hyderabad, Bangalore, Pune, Agra, Ahmedabad, Indore, Jaipur, Lucknow, Mangalore, Vadodara, Noida and Gurgaon.

In terms of advertising, Raymond majorly banks on local activations, city specific engagement programmes and radio, other than print. It has pop-up MTM stores that it carries to corporate houses to demonstrate the look and feel of the products and organise workshops on grooming etc.

The brand is also planning to extend the services to its women buyers and has also launched casuals like Italian Slim Fit, linen jackets and set to launch accessories to its existing product portfolio.

Pitch | July 2012

Experts feel that MTM vans can serve as effective communication and lead generation vehicles, but are skeptical if actual sales can happen at these vans Complete solution?

So what makes the concept different from competitors like Reid & Taylor that also offer customised services? Pandey feels that currently there is no direct competitor as other players are more into tailoring, while Raymond is a step ahead with this ‘Readymade Plus’ offering. He explains that at the MTM store, once a customer’s measurements are recorded and personal profile pictures taken, the data is sent to the stateof-the-art Raymond factory in Bangalore, which claims to have the latest technology.

The system uses computerised cutting and finishing processes, thus ensuring a perfect consistency in the fit and finish of every garment. For the record, it takes more than 150 operations to transform a piece of fabric to an exclusive MTM garment.

Scope for growth Since consumers are fast moving towards readymade branded apparel, are there any takers for MTM? Experts like Acharya and Lalwani feel that there is a lot of scope for growth for MTM. Acharya says, “Apparel

“MTM has created great consumer pull as seen by its repeat purchases which is in excess of 40 per cent” Rakesh Pandey President, Retail & Business Development, Raymond

industry is clearly a growing segment and amongst that the under served category is the bespoke category. Most brands have moved to readymade, but Raymond is creating its space in this under served category. Also, gross margin play can be higher as consumers are willing to pay the premium.” According to McKinsey research, the more organised segments like men’s formals provide the highest retailer margins of upto 35-50 per cent. Datamonitor too has estimated a growth by 40.6 per cent (to $13.8 billion) in 2012 in the Indian menswear market.

Lalwani too feels that readymade is not a successful concept because of the variation in sizes of the Indian body type. There are no fixed sizes when it comes to consumers, but brands only have standard sizes like small, medium and large, which mostly cater to the younger consumers.

“This is where, customised clothing comes into play and brands like Raymond cater to the specific needs of the consumer, especially the middle-aged consumer. Additionally, with great quality fabrics that too not overpriced, there is a huge market for Raymond to tap,” says Lalwani.

According to data by Euromonitor, approximately 95 per cent of value sales of apparel went through clothing and footwear specialist retailers in 2011, with exclusive brand outlets and specialist clothing stores, the main channel for consumers to shop for apparel.

However, while the company may think it has no direct competition, the fashion stylist feels that it may come from young designers if not from corporate brands. On the other hand, Acharya feels that Reliance Trends and all the other local dealers/shops/ outlets in each city like Ghulam Mohammed in Kolkata, are its major competitors. n ruchika@pitchonnet.com

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MEN VESPA

Cult recreated?

Vespa is making a come back on the Indian streets, and this time as a lifestyle brand.

Will it be able to replicate its international magic here too?

By Abhinav Mohapatra

A

cult symbol that made a name for itself in the ’50s and ’60s and driven by iconic figures like Audrey Hepburn, Italian scooter brand, Vespa is gearing up to restore its glory with a new positioning in the Indian market. It is all set to become a lifestyle brand in the scooters market in India and has, thus, unleashed aggressive on ground activities to shed the earlier tag of being called a common man’s scooter.

“During the Bajaj and the LML days, Vespa was not available in its true sense.

It was available as a common man’s scooter. It is the first entry of Vespa in its true lifestyle avatar, as it is seen across the world. We are not here to compete in the hard core commuter market but associate it with lifestyle and fashion statement,” says M V Krishna, Associate Vice President, Marketing, Piaggio Vehicles.

Back in character The company is revving it up by engaging consumers directly with latest product launches and offerings at places with high consumer footfalls such as malls. It recently displayed Vespa in a retro avatar in a contest held in one of the malls in Delhi. So is the company looking at retro designs and thus nostalgia to woo consumers? Krishna responds, “The Vespa that is displayed in the Lifestyle mall in Delhi, has a retro look but it is a totally new design. It has the DNA of the old Vespa, but is more beefed up and comes in vibrant new colours. It is something like a Beetle or a MINI, which are products from the past. They have been modernised and have a certain DNA that they have retained. It is of the neo classical style but contemporary. The products look modern but still retain the design from the 1946 classic.”

The other on ground engagement programmes include contests in malls, multiplexes and various other places.

Vespa is looking at print, digital and TV too in a big way.

On the digital front, Vespa ran a contest, called ‘Once upon a Vespa’, where contestants had to answer questions related to the history of the brand.

The winners got a chance to visit Italy where Piaggio’s Vespa museum is located.

Style statement However, despite all these marketing efforts, will the high price tag deter consumers from purchasing a scooter when he/she is spoiled for choices in the hyper competitive two-wheeler market in India? Are people ready for a premium scooter?

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“We are not here to compete in the hard core commuter market but associate it with lifestyle” MV Krishna Associate Vice President, Marketing, Vespa India

“The idea of a premium scooter does not exist in the market at this point of time, again we are not super premium like the bikes of Harley or BMW, but we are a lifestyle statement sort of a scooter. In terms of technology we are superior as the 125 CC engine that we are providing is much better than anyone in the market in the scooter segment, we give a three valve engine that none of the other scooter give. So in terms of technology and performance, we are a shade superior. But that is not our pitch. Our pitch is towards the lifestyle statement,” Krishna adds.

According to Krishna, there is only one model, which is priced at approximately Rs 67,000 (ex showroom) which will come to about Rs 78,000 (on road). That is close to about 40 per cent more premium than the basic scooter that is available in the market. Since it is being positioned as a premium lifestyle brand, the product will not be sold on the mileage or the resale value.

All these things come into play when there

Pitch | July 2012

is competition but the whole brand idea is on the lines of a fashion statement.

Shahwar Hussain, Freelance Automotive Journalist and Founder, Chain Reaction, says, “Rs 68-70,000 for a 125 CC is quite a high amount, but it has a very strong brand recall. It did very well internationally and is something like a cult. In India the tie up with LML did wonders back in the olden days but I don’t know how it will do now as a singular brand.”

On the brand’s tumultuous journey in the Indian market over the years, Murad Ali Baig, Automobile Expert, says, “Vespa has a great sentiment attached to India; it has had its ups and downs. It was a huge success when it had a joint venture with Bajaj in 1950s, and then Bajaj absorbed the technology and rejected Vespa. LML had also approached Vespa, which went into a joint venture and put a dent into the Bajaj business as they got into the race of the twowheeler segment till 80s and 90s when motorbikes came into the picture. The 100 CC bikes killed the scooter industry.”

Recently, Honda has seen a phenomenal growth in the scooter segment with its Activa. It seems to Baig that this pushed Piaggio to step in the Indian industry. “Vespa was a pioneer like the Volkswagen Beetle. The company comes out with iconic scooters which start from the top of the tree in terms of pricing and then stand out. I think Vespa’s theory is to establish its dealership in the premium scooter segment and then roll out cheaper models. Piaggio will start at the top and then go to the bottom in terms of segmentation,” Baig further adds.

Adds Hussain, “If someone does buy this scooter, it will be a second or a third two-wheeler, not a vehicle that is used for travelling long distances, not for those with nine to five job and definitely not for the utility or functionality aspect. It’s for showing off and making a statement.”

Targeting a lifestyle Thus, talking about the TG for Vespa, Krishna says, “We are not looking at any specific age group. If you want to define a specific physical age, then I would say we are targeting 20-30, since we are a unisex product; we are not targeting

Pitch | July 2012

men or women. More important than the demographic difference is that we are targeting those who want to make a statement with their two-wheeler, somebody who is looking beyond commuting between point A and B, ones who are looking to reflect their personality with this product. So our positioning is that of a product which is a style statement for those who go beyond the basic functionality of the product. Our positioning is of that product that stood the test of time and is a classic.”

The company is positive that slowly Vespa will be accepted as a lifestyle Ital-

“Vespa has a great sentiment attached to India; it has had its ups and downs” Murad Ali Baig Auto expert

“Vespa did well internationally and is something like a cult.

In India the tie up with LML did wonders” Shahwar Hussain Freelance Automotive Journalist and Founder, Chain Reaction

ian brand in the scooter space.“ The fact that it has been featured in so many movies including classics and is a classic brand in itself, establishing that in the Indian market will be our target,” Krishna appends. But Baig thinks that the vehicle is not targeted at masses but the youth and young affluent women who have an extra buck to spend on something iconic.

High expectations Incidentally, the company is not keen on garnering a market share as the brand’s spokesperson says, “We are not working towards a market share. Instead, we are working towards a volume that we think we will achieve over a period of time. Share comes out of competing with products like Honda Activa and Suzuki Access and other such products. When we are not competing with them, how do we get shares?”

The company is banking on its 50 dealers across 35 cities. Piaggio, which as a group has several models within the Vespa brand and outside the brand, will be launching more with time.

Though many scooter brands in the market have roped in Bollywood celebs to add an extra star quotient to the appeal of their brands, Piaggio wants to stay clear of the endorsement route. “Vespa has never had brand ambassadors in the way people hire endorsers to show off your brand, that has never been the case with Vespa. Vespa was showcased in movies because people wanted to show Vespa as it is a cult symbol. You never pay more to showcase the brand with an actor or a cricketer, Vespa was used for its inherent brand strength, people have taken Vespa just like Harley to increase the value in their movies and lives. We are not going to appoint any brand ambassador,” says Krishna.

According to SIAM (Society of Indian Automobile Manufacturers) the two-wheeler industry recorded a growth of 11.17 per cent during April-May 2012 and the scooter segment grew by 32.35 per cent. Will Vespa be able to contribute to this growth, even though it is not competing to become a scooter for the masses but a ‘style statement’ for the niche? Only time will tell. n -abhinav@pitchonnet.com

13

COLUMN

Mobile: Transforming our lives When it comes to mobile, India’s rate of development & industry’s potential is unmatched

T Rohit Dadwal

Managing Director, Mobile Marketing Association rohit.dadwal@mmaglobal.com @rohitdadwal

he mobile industry in India has developed at a phenomenal pace and in fascinating new ways.

The launch of Vodafone’s ‘mpaisa’ service last year, in conjunction with HDFC Bank, is an example of this. The service provides mobile users with the ability to perform basic banking transactions, as well as make deposits and withdrawals at selected Vodafone m-paisa outlets. The launch of the service in Rajasthan aimed to cover 2,200 retailers across 320 villages and 54 towns.

Mobile banking can help provide banking services in rural areas that are typically not served by private banks. The mobile banking interface is usually simple enough to be used on feature phones and users just need to type in a code associated with a particular transaction. With no tedious filling in of forms and standing in endless queues at the bank or post office, m-banking can simplify the lives of many.

State Bank of India is also using mobile banking to extend its services across India. Faced with the target of addressing 662 unbanked villages by 31 March next year, SBI has also covered 496 villages, bringing banking services to the villagers’ doorsteps using mobile banking.

Taken together, these stories point to the bigger trend of how mobile is changing the nature of banking and finance in India,

and the rest of the world. When he spoke at the 13th Annual Confluence at Indian Institute of Management, Ahmedabad, Google India MD, Rajan Anandan explained that e-commerce is the next big trend in the mobile space enabled by mobile internet and the availability of mobile data services.

India’s mobile phone subscriber base makes it the second-largest mobile market in the world. That is why, so many mobile innovations have begun to pop up all over. Just this month, the Kerala Tourism Board announced the launch of its mobile-based services including a mobile website, apps and Bluetooth kiosks. With the power of sheer numbers behind them, initiatives and businesses like this can be viable even if profit margins are low.

Many companies have already realised the potential of mobile and interactive media. The Times Business Solutions group of companies for example has many services like MagicBricks. com, SimplyMarry.com, and PeerPower.com, many of which are trying to leverage the mobile medium. PeerPower.com for example makes use of a unique street networking feature, which allows users to connect with professionals in their immediate locality or vicinity.

For mobile marketers like myself, this is simply a sign that India’s mobile space is maturing, and that

India’s mobile phone subscriber base makes it the second largest mobile market in the world. That is why, so many mobile innovations have begun to pop up all over 14

the potential that has been latent for so long is finally coming to be.

Including mobile payments, mobile finance, m-commerce and others as part of mobile marketing campaigns opens up new vistas, new possibilities. Consumers may be able to avail themselves of special deals or discounts, using their mobile payments to secure them in advance – even pre-paying for meals or products and collecting them afterwards.

The prospect also exists for other services to surface, riding on the popularity and availability of mobile finance and commerce. Once payment systems and other means of handling money through the mobile channel become accepted and widely used, it becomes easier to tie them in to, say, location-based services, or even to integrate the information with augmented reality to provide richer, enhanced shopping experiences.

There might even be combinations and permutations that are inconceivable at the moment – and it will be up to the bright minds of innovative creatives and forwardthinking creatives to come up with them. There will also need to be solutions to India’s unique sets of problems – but with innovations like the Aakash tablet and magriculture initiatives where farmers are provided with information customized to their needs, it looks like the country is already well on the way to leveraging the power of mobile technology. 

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Pitch | July 2012

Pitch | June 2012

15

COVER STORY YOUTH MARKETING

What's your YQ? How well do Indian marketers understand the Indian youth? What are the activities they are doing to catch their attention?

16

Pitch | July 2012

By Pallavi Srivastava & Arshiya Khullar

Y

outh is contributing heavily to the rapid change in the Indian economy and are fast becoming the darling of India Inc. India is one of the youngest countries in the world today with nearly half of all Indians (approximately 50 crore) below 25 years and more than 65 per cent below 30 years of age. No surprise then that youth have become a key focus in the marketing blue prints of most of the brands. Estimates suggest that India has a median age at 26 years (as of 2010), trending towards 28 in 2020. Compare this to median age of other countries in 2010: Brazil at 29, China at 34, US at 36.6, Russia at 38, UK at 40 and Japan at 45.

For reference in this story, we are talking about the 18-24 age group as Youth, which essentially is on the radar of every marketer in India.

Changes in the consumer patterns started happening 7-8 years back, when the economic scenario changed in the country, coupled with the increase in availability of hang out places. The mall culture, café culture and increased disposable income have changed the way youth today conduct themselves and manage their funds.

The pace of change in consumer behaviour of youth itself has increased.

And advertisements – TV, print, outdoor

What do they think?

98% youth believe they have the power or ability to bring change in the world

Almost 50% young vociferously complain online if they don’t get good service from brands More than 50% claim they derive their power from a social network Nearly 42% insist they will actively participate in a cause or movement that affects them A mere 10% look up to public figures as a role model Source: MTV Power of One 2012

Indian marketers and brands able to keep pace with the Indian youth? Do they understand the Indian youth well? Do they know what Indian youth want? Do they speak their language? Pitch decided to explore this further and so we went to the marketers and threw some questions at them to check their youth quotient.

But before we get on with the youth quotient of marketers, let’s first try and understand their consumer behaviour and what they want.

Who’s the best friend?

It’s the mobile phone! Yes you heard it right. Instant access to information and the urge of “always staying connected”

Advertisements - TV, print, or outdoor - are not apt.

That seem too dictating. Engaging the youth is the mantra, and experience the tantra are not apt. That seem too dictating. Engaging them is the mantra, and experience the tantra. So marketers are engaging them online, and on-ground. And so, what’s the yantra? Sports – adventure, cricket, football, Formula 1 – music, and brand extensions like cafes. And how are brands doing that. Read on to find out.

Meanwhile, the pertinent question is: Are

Pitch | July 2012

through social media and instant messaging has made them glued to their mobile phones making it their best friend.

Pratik Seal, Head – Marketing, Micromax, agrees,“The youth need a smart device that enables them to do all this, which is indeed driving the smartphone market in India which touched 27 lakh units during last quarter of this year.”

And the result? Certainly, this trend has been a boon for handset and telecom services brands.

Krishnadeep Baruah, Marketing Director, Research in Motion (Blackberry) says, “The popularity of BlackBerry smartphones among consumers owing to BBM services and a wide array of applications for being connected on social media is an example of the increasing shift in behaviour and preference among the youth today.” The increasing availability of relevant apps for consumers, further boosting the business for telecom service providers.

Mobiles clearly present an immense opportunity for brands to reach consumers on this medium. Simeran Bhasin, Marketing Head, Fastrack and New Brands, Titan Industries, rightly terms the mobile phones as “the new Televisions for the youth”. “We are focusing a lot on this medium along with our efforts on web”, she adds.

Age of digital shoppers As the youth go through their day, their comfort level with technology is incredibly high. Commenting on behalf of Microsoft Xbox, Anshu Mor – BG Lead, Interactive entertainment Business, Microsoft India, shares, “Microsoft Advertising’s Pre Family Survey 2011 shows that they feel naked without technology and that the internet is providing young people with a platform to carry out

17

COVER STORY YOUTH MARKETING increasing portions of their offline life with regard to searching, seeking information, creating content and using these inputs to shop online.”

This clearly points to one clear emerging trend over the last one year that today’s young consumer has developed a strong taste for shopping online! Another study done by Microsoft Advertising and Aegis Media reveals that 2011 was a year of ‘digital shoppers’; the study further showed that at least 48 per cent of the those shopping decisions were spontaneous.

Naman Sharma, Executive Director, U’th Time Integrated Media Services says, “The primary source of traffic for online shopping (and other e-commerce portals) plus social media activity are young consumers (in the age group of 13 to 25). As a result, the number of online shopping platforms has increased and/or expanded dramatically over the last few years.”

Adds Manu Kumar Jain, Managing Director, Jabong.com, “As per our data points, people in the age group of 1825 comprise significant share of sales on our website. We are also seeing an increasing trend of repeat buy in this age group and at the same time they are open to it and are trying out new things every time they browse through.”

Since the consumer behaviour of youth is extremely dynamic, to gain consumer confidence, e-commerce websites are offering additional services such as flexible payment options, Cash on Delivery, and flexible return policy. Online shopping comes with added benefits of time saving, fuel saving, quality control and privilege of being able to compare brands/styles/prices easily.

Keeping pace with speed It has now become a regular practice for

How does the Indian youth spend money?

Percentage of youth (boys vs girls) spending more than Rs 1,000 on various activities in a month

23

ALCOHOL, CIGARETTE, DOPE

19

41

BUYING GADGETS

37

17

BUYING TEXT BOOK

17

39

CLOTHES/ACCESSORIES

42

7

COFFEE SHOPS

5

7

COMMUTE

14

27

DATES WITH BF/GF

15

15

EATING OUT

13

30

FUEL

24

41

HOLIDAYING

41

39

INTERNET SURFING

39

14

MOBILE BILLS

10

25

PUBBING/CLUBBING

14

11

WATCHING MOVIES

5

Source: MTV Youth Wallet

youth to search for customer reviews on web, blogs, consumer forums and other social media websites to gather insights before purchasing anything. Mohit Hira, Chief Marketing Officer, Career Building Solutions, NIIT, says, “Facebook has become the most popular source for almost all information: be it movie reviews or educational courses.”

Not just Facebook, extensive research is undertaken by youth on the web about the company, quality of customer service, and kind of products a retailer

Staying cool in the eyes of the youth has become a lot harder since all brands are trying to tap into the huge market that India has to offer 18

offers. Staying cool in the eyes of the youth has become a lot harder since all brands are trying to tap into the huge market that India has to offer. Fastrack’s Bhasin thinks, “They consult each other a lot more, critique instantly and voice their opinions to the world in an instant.

More and more youth are travelling today and seeing the world. Within India, Tier-II and III towns, students are moving to the big cities to live their dream and have newer experiences. Brands have to constantly keep pace with the speed of communication among circles of friends and work that much harder to be part of their conversations.”

Spoilt for choices With numerous brands, both from India and outside, have made them spoilt

Pitch | July 2012

There is a a higher level of expectation in the metro youth. They require sophisticated marketing strategy as compared to their rural and small town counterparts for choices. Samar Singh Sheikhawat, Senior Vice President, Marketing, United Breweries, agrees, “They are faced with a bewildering plethora of choices in everything they do.”

And this unlimited choice also makes them more demanding from a brand’s perspective. They want better quality, more value-for-money, superior experience and more.

What’s up with the small town cousins?

If the industry reports are something to go by, about 70 per cent of the retail consumption is contributed by smaller towns of India. “The young people in smaller towns have bigger ambition and are much more driven,” feels Aditya Swamy EVP & Business Head, MTV India.

Tarak Bhattacharya, Chief Operating Officer, Mad Over Donuts, feels that the youth in these pockets, generally try to connect and get inspired by urban lifestyles and trends. “The onset of a mall culture in the smaller towns is opening up new avenues for the consumer to discover and adapt to. These markets being untapped by us, open up a plethora of marketing opportunities.”

Nili Zur, General Manager (Beverages), Nestle India, doesn’t want to find

differences between the Tier-II/III youth and their metro cousins. “They are both very significant. We now factor in for this and try to ensure that our communication is more universal and not layered with references that would limit it to an urban context. The story needs to be equally relatable, no matter where you are based, since our distribution system is already reaching our coffee products to consumers across different market,” she says.

Anand Chakravarthy, Executive Vice President, Marketing, Reliance Broadcast Network, adds, “A discerning buyer will

70%

of sales of Yepme.com come from smaller towns, and only 30 per cent from metros and big cities

go in for branded and lifestyle products, irrespective of location. With social media coming of age, the knowledge of new products and values towards lifestyle are generic in all age groups across geographies.”

The small town youth is equally digitally savvy and in fact their level of involvement with the digital medium is higher than youth in bigger cities. Their contribution to e-commerce, in fact is more than their metro cousins.

Ads like that of Fastrack - Watches (L) and Bags (R) bare the dare all attitude of today’s youth, who are ready to take risks and take the world in their stride Pitch | July 2012

One such e-commerce portal, Yepme claims that 70 per cent of its sales is from small town and only 30 per cent from metros and big cities.

Mukesh Bansal, CEO & Founder, Myntra. com agrees, “Even the consumption pattern is growing like it did in the metros. We are aiming at reaching out to our customers in these cities in a much bigger way by using a mix of various marketing activities.”

As for the differences, marketers feels that there is a certain cynicism and a higher level of expectation in the metro youth and so they require a little more sophisticated marketing strategy compared to their rural and small town counterparts.

United Breweries’ Shekhawat says, “Our whole package approach has to be more sophisticated and slick for a metro youth at the moment as opposed to the rural youth. But the more they are exposed,

this will scale up and their expectations will become very similar to the urban youth in many areas.”

Hira, meanwhile, has an interesting observation to make. “The metro youth tend to expect extremely higher salaries from their first jobs but are reluctant to put in extra effort for this. Students from smaller towns, however, are a lot more pragmatic and willing to work harder,” he adds.

Marketing mantras while dealing Gen Y At the same time, this dynamic set of consumers, irrespective of their geography, is posing a challenge for marketers.

Only those with an appetite for aggressive innovation and ability to offer entertainment seamlessly fused with a social experience will manage to do so before the consumer loses interest and moves on.

Marketers feel when it comes to reaching youth, it’s never one medium that serves the purpose to target the youth today. “If you have to talk to the youth today, you have to surround sound them, so we look at four zones to talk to young people including: TV, social media, digital and real

19

COVER STORY YOUTH MARKETING

Brands like Mountain Dew (L) and Red Bull (R) are engaging the youth with adventure and sports live space,” says MTV’s Swamy. He further points out that social media is dealt differently from digital, because social is another stream. It’s a hangout: so if 10 years ago, there was a PVR or a cafe Coffee Day where the youth used to hang out, today it’s social where they hang out.

Nescafe’s Zur shares, “We consider ‘digital’ to be a very exciting medium, especially when it comes to connecting with the youth. We have already made a beginning in digital with our very successful Facebook page ‘Know Your Neighbours’ and will continue to create initiatives of consumer interest on this medium. At the same time, since personal exchanges play a very significant role in creating more intimate and lasting experiences we will continue to emphasise on-ground interactions.”

The company has Café Nescafe hubs in colleges to boost the brand’s on-ground presence amongst the youth.

Similarly, Puma has taken the music route to connect with youth. It launched ‘Puma Loves Vinyl’ platform which brought together seven bands, got them to record an original Puma social song and will now press a limited edition

20

Vinyl LP featuring these songs. Puma’s Mehta says, “We have never been a ‘logo presence’ brand. By simply sponsoring a property we get no value. We rely on BTL engagement and activations that are event led to target the youth.”

Music events are also favourite of media brands targeting youth. Over the past one year, youth channel, Bindass has focused a lot on music content too. The channel had a mix of Indian and international artists like Lady Gaga and David Guetta in its fold. The channel also associated with names like Rabbi and Swarathma to offer Indi Pop and Folk Rock and add some spice to its music offering. Kunal Mukherjee, Director, Marketing UTV

& Bindass Networks, says, “The youth has responded very well to these properties. We have also delved into connect programmer where we have aggregated platforms for advertisers and their youth consumer target group.”

When one is talking about connecting with youth, it’s very difficult to miss a brand like Red Bull. Last year the brand utilised the Formula 1 platform very heavily to connect with Indian Youth. It launched Red Bull Speed Street with the Formula 1 show car running in front of India Gate.

Another brand which went berserk on ground to lure youth is PepsiCo’s Mountain Dew. The brand launched Mountain Dew Xtreme Tour in India, with the

Pitch | July 2012

objective to drive increased consumer engagement by making them experience and witness action sports, going well with its positioning of ‘Darr Ke Aage Jeet Hai’! Under this initiative, Mountain Dew organised consumer workshops across metros and smaller cities in addition to bike mobs in various colleges.

From PepsiCo stable, another youth focused initiative was complete brand refresh of 7UP with a new upbeat positioning of ‘Dil Bole I Feel UP’. Ruchira Jaitly, Executive Vice President - Marketing, Beverages (Flavours) PepsiCo India, says, “7UP introduced a peppy anthem that caught on very well and is still on a lot of people’s cell phones as their caller tunes and ringtones for which, we got over 50 lakh downloads across the country. Of course, the TVC which has Sharman Joshi doing a dance-off with a penguin is directed at the youth, who have liked the concept and found it fresh.”

For some, youth brands extending the brand beyond their usual realm is another way to connect with the consumers.

For instance Channel V launched brand extensions like The V Spot Cafe+Bar and Indiafest. The latter is a college festival property created by the brand. Prem Kamath, Executive Vice President and General Manager, Channel V, says, “We realised the limitation of conventional marketing, owing to the clutter and noise all the brands are making. Brand extensions such as The V Spot Cafe+Bar and Indiafest have obvious commercial benefits but they’re also invaluable platforms to connect with the youth.”

The brand has also integrated Indiafest in the screenplay of the story lines of its fiction shows.

The channel in the recent past has also done some major changes in its programming and has increased focus on fiction shows. Kamath feels, “In the ‘90s, music programming was a rage and the VJs were demi-gods. Today, YouTube has changed the way youth demand and consume music. We took a hard look at these facts and did the unthinkable for most - stopping mu-

Pitch | July 2012

For some, youth brands extending the brand beyond their usual realm is another way to connect with the consumers. Channel V launched The V Spot Cafe+Bar sic programming.” Contrary to popular cynicism, ratings according to him “have remained steady and audiences hardly seem to be missing it.”

We certainly cannot afford to not talk about Airtel’s successful ‘Har Ek Friend Zaroori Hota Hai’ campaign. Apart from its above the line campaigns, Airtel has also focused on sports. Most recently, it announced the launch of Airtel Rising Stars – a rigorous scouting programme that will cover 16 cities across India and choose 12 talented footballers who will get the chance to attend a week long training camp with Manchester United in Old Trafford, England.

While, most of the above have been concentrating on sports and adventure buffs, Cupidspeaks.com, a popular youth portal, is trying to not leave the geeks out. In May, earlier this year, Cupidspeaks.com in association with Dell, Belkin and Yebhi.com organised the Delhi Chapter of Blogathon, which brought young bloggers from differentr cities to-

gether. Akshita Jain, CEO & Founder, Cupidspeaks.com, says, “The meet totally defined the purpose of the network. The fact that we trended in India not only on the day of the event but also the next three days, says the scale and the effect of the initiative completely.”

Amidst all this, the bigger question is, do youth follow brands or do brands chase the young? Do our marketers understand the youth well? What picture do Indian marketers behold of youth brands in India? In the following pages, we try to peek into the mind of the marketers of some of the youth brands in India. While MS Dhoni still remains a hot property amongst marketers, this year, Mark Zuckerberg and Deepika Padukone too make it to the list. Meanwhile, i next’s Editor & COO, Alok Sanwal finds India’s former President, Dr APJ Abdul Kalam as a youth icon. To find more, turn over.  With more inputs from Ruchika Kumar & Abhinav Mohapatra -feedback@pitchonnet.com

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COVER STORY YOUTH MARKETING

How I see the youth?

Aditya Swamy

EVP & Business Head, MTV India

Working together as a collective but each having their own unique identity. There is a tribe across the world, which is behaving more and more as one but within the tribe, they are seeing a lot of uniqueness and there are different things coming from within this community.

My favourite youth brand Igrew up on MTV so that is one; Coca Cola was big; Nike and Levis were something that you would tell your uncles abroad to get for you

Favourite youth campaign I don’t think that there is an all time favourite but there was this Ceat campaign that I was fond of, unlike a tyre campaign.

My favourite Youth Icon Jim Morrison

My last tweet and Twitter handle @aswamy Favourite book or portal on youth There are many no specific one as such

Today I hear the final mixes for episode 1 of #cokestudioatmtv .. Super excited !!! @clintoncerejo is a total perfectionist..

Full respect As told to Abhinav Mohapatra

22

Pitch | July 2012

How I see the youth?

I see the youth as one powerful channel that can bring a huge difference. The youth follows the unconventional ways and gets unconventional results.

Akshita Jain CEO & Founder, Cupid Speaks

My favourite youth brand MTV

My favourite Youth Icon Mark Zuckerberg

Favourite portal on youth I cannot help myself but highlight one of my own initiatives here, www.blogathonindia.com (Blogger network)

Favourite Youth campaign My favourite campaign of a youth brand would be Airtel’s campaign “Har ek friend zaroori hota hai”. There are a lot of reasons of it being my favourite and also of being such a hit campaign. Firstly it was a very well thought and executed campaign.

Airtel captured each and every medium in an amazing manner and had the entire country singing the anthem of “Har ek friend zaroori hota hai”. The best part was the thought process behind the inception of the entire campaign, Airtel totally knew the right emotion to target and that is what worked best for them.

My last Tweet and Twitter handle @colorificindia My last tweet was regarding my fashion blog, a product review that I recently did.

As told to Arshiya Khullar

Pitch | July 2012

23

COVER STORY YOUTH MARKETING

How I see the youth?

Full of energy & enthusiasm. They live life of today and quite unconventional. They do represent a good ‘tomorrow’ for the society as they are bold and are giving shape to the profile of the new consumer.

Alok Bharadwaj Senior Vice President, Canon India

Youth campaign I like The Airtel brand campaign My favourite youth brand MAXX Deo

My favourite Youth Icon Anushka Sharma

My last tweet and Twitter handle @alokcanon

Favourite book or portal on youth Facebook

Youth of India are the growth opportunities for all brands

As told to Ruchika Kumar

24

Pitch | July 2012

How I see the youth?

I conceive youth as a kind of powerhouse which has tremendous potential energy.

The only challenge remains is to tap and channelize the vigour into performance.

Alok Sanwal Editor & COO, i next

My favourite youth brand Levi Strauss

Favourite youth campaign Just Do it! (Nike)

My favourite Youth Icon Dr APJ Abdul Kalaam

Favourite book on youth Ignited Minds

As told to Dhaleta Surender Kumar

Pitch | July 2012

25

COVER STORY YOUTH MARKETING

How I see the youth?

Youth wants to experience everything.

They speak their mind. They are bold, Positive, focused and know what they want.

Amol Dhillon Vice President- Strategy & Planning, Woodland

My favourite youth brand MTV Favourite youth campaign Mountain Dew

My favourite Youth Icon Sachin Tendulkar

As told to Pallavi Srivastava

26

Pitch | July 2012

How I see the youth?

Anand Chakravarthy Executive Vice President, Marketing, Reliance Broadcast Network

According to reports, more than half the population of India’s over 1.2 billion people are under the age of 25, making it possibly the youngest nation in the world. In spite of all challenges, one can see economic development, increase in education and opportunities. I see a dynamic generation with a never say die attitude, leading India from the front in the new world order where India will play a prominent role..

Youth campaign I like Blackberry Boys My favourite youth brand Apple

My favourite Youth Icon Fave book or portal on youth Facebook

Lionel Messi - Extremely young, talented, humble and charismatic. For a 25 year old the magic he weaves on the field makes him the most likeable players in the world.

As told to Ruchika Kumar

Pitch | July 2012

27

COVER STORY YOUTH MARKETING

How I see the youth?

Drivers of our nation’s unstoppable march to greatness

GG Jayanta National Marketing Head, Radio Mirchi

My favourite youth brand Café Coffee Day

Favourite youth campaign Pepsi’s Change The Game

My fave Youth Icon Saina Nehwal

Fave book or portal on youth None in particular As told to Pallavi Srivastava

28

Pitch | July 2012

How I see the youth?

The youth today are an exciting, well informed, intelligent and extremely active generation. They are passionate, goal oriented and go getters, but need to achieve it all very early in life. Fearless, limit–less dreamers and achievers.

Krishnadeep Baruah

Director, Marketing, Research In Motion, India

My favourite youth brand MTV

Favourite youth campaign Change the game from Pepsi

My favourite Youth Icon Ranbir Kapoor

My last tweet and Twitter handle @krisbaruah Impressive positioning from Jockey. Love their tagline “Jockey or nothing”. Making me take notice of a totally non involving category.

As told to Pallavi Srivastava

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

The youth of today is opinionated and rightly so. Most things around impact their lives and they are completely aware of the ramifications. They are influencers of change and dictate the way most brands position and present themselves.

Kunal Mukherjee Director Marketing, UTV & Bindass Networks

My favourite youth brand Puma

Youth campaign I like Diesel’s ‘Be Stupid’

My favourite Youth Icon Virat Kohli My last tweet and Twitter handle Not tweeting off late

Favourite book or portal on youth Pinterest

As told to Ruchika Kumar

30

Pitch | July 2012

How I see the youth?

Manu Kumar Jain

Fast paced, internet savvy, have decision making power and are extremely brand conscious and fashion conscious. Youth today is updated about whats happening in the world around them as they are on the world wide web 24*7 and are also connected through various social networking websites.

Managing Director, Jabong.com

Myfavourite youth brand Apple Favourite youth campaign Unhate campaign by UCB

My favourite Youth Icon Sachin Tendulkar

My last tweet and Twitter handle @manukumarjain

Favourite book on youth Imagining India by Nandan Nilekani

Biggest ever #sale at @Jabong 20,000+ products Upto 60% off

As told to Pallavi Srivastava

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

Youth is the plural force that has the power to change ….

My favourite youth brand Cadbury

Manu Seth Country Manager, Marketing, HTC India

My favourite Youth Icon Sachin Tendulkar

Favourite book or portal on youth Built to Last by Jim Collins

Five campaign of youth brand (excluding own brand) kuch meetha ho jaye

My last tweet and Twitter handle @sethmanu1 Live your dreams

As told to Pallavi Srivastava

32

Pitch | July 2012

How I see the youth?

Mohit Hira

Restless, ambitious, unforgiving, demanding, vocal, social, sometimes confused but also incredibly clear about what theywant from life, independent, driven by peers.

Chief Marketing Officer, Career Building Solutions, NIIT

My favourite youth brand Apple

My favourite Youth Icon Yuvraj Singh: He’s a brand who has reinvented himself after an inconsistent career and huge adversity.

One can see shades of classic brand lifecycles here and a determination to reinvent and remain relevant.

Favourite youth campaign Cadbury Chocolates

My last tweet and Twitter handle @mohitoz Languages in danger: http://www.endangeredlanguages.com/

Favourite book on youth The Bhagavad Gita. It may sound strange but there is an appeal that this classic holds for every person at every stage…including marketers and their brands.

As told to Arshiya Khullar

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

Youth is energetic, willing to try new things, innovative. From our perspective, they are the trend setters so a very key market for us.

Mukesh Bansal CEO & Founder, Myntra.com

My favourite youth brand Tommy Hilfiger

My favourite Youth Icon Sachin Tendulkar

Favourite youth campaign Har Ek Friend Zaroori Hota Hai ( Airtel)

favourite book or portal on youth MTV

As told to Arshiya Khullar

34

Pitch | July 2012

Favourite youth campaign Airtel – ‘Har Ek Friend Zarori Hota Hai’

Naman Executive Director, Uthtime Integrated Media Services

My favourite youth brand Coca-Cola My last tweet and Twitter handle @UthTime

My fave Youth Icon MS Dhoni

Why India’s youth will make Saif & Deepika’s latest movie ‘Cocktail’ a hit!

Fave book or portal on youth 5 Point Someone by Chetan Bhagat

As told to Abhinav Mohapatra

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

I think youth is a state of mind. It is the summation of your talents, your passions and your creativity in a manner that together they push you to your purpose.

Nili Zur General Manager (Beverages), Nestle India

My favourite youth brand Nescafe

Favourite youth campaign Fastrack has been remarkable in their execution; Red Bull is amazing at on ground activation

Myfavourite Youth Icon Deepika Padukone

My last tweet and Twitter handle I don’t really get time to tweet

Favourite portal on youth Facebook is universal, I guess!!

As told to Arshiya Khullar

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Pitch | July 2012

How I see the youth?

Youth, always, throughout the ages, have remained similar in the way they think, behave and react.

However, it’s the context that changes across every generation.

Pratik Seal Head- Marketing, Micromax

My favourite youth brand Globally my vote goes to Nike, Apple and Levis. On the Indian brands I love what Fastrack, Tantra and Inkfruit.com are doing..

Therefore, I believe, that this variance in environmental, social and cultural stimulus creates an apparent illusion of minor or major change in every generation.

Reality is that in all probability the kid is acting the same way as that the parents have had in their younger days. Its only the situation has changes, and therefore the superficial tonality.

For the young, challenging the prevalent tenets has been forever consistent. However, now they are far more ‘inclusive’ and ‘manipulative’ that the so called ‘rebels’ of the past. That makes them seem more mature, at least superficially.

Favourite youth campaign The Nike campaigns.

Love all of them. Like the Diesel campaign as well.

My favourite Youth Icon I love all of those Youtube celebs (Austin Mahone, Justin Bieber, Rebecca Black, Kim Kardashian, Doctor Steel, the Vloggers...)

Favourite portal on youth Love the MTV and Bindass sites As told to Pallavi Srivastava

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

Youth symbolizes energy, vibrancy and style today.

Sachin Thapar Head, IT & Mobile Division, Sony India

My favourite youth brand Adidas

Favourite youth campaign Umeed wali dhoop by Coca Cola

My favourite Youth Icon MS Dhoni

Favourite book on youth The Winning Way (by Harsha and Anita Bhogle)

As told to Arshiya Khullar

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Pitch | July 2012

Most preferred Regional News Network in the country

ANDHRA PRADESH

K A R N ATA K A

G U J A R AT

MAHARASHTRA

News can happen anytime, any where.

T VV ser ves it hot. Prestigious awards won by T VV showcase its super ior class. . . . N T awa rd s,

D o co m o Awa rd s,

N a n d i Awa rd s s

Associated Broadcasting Co. Pvt. Ltd. Plot # 97, Road # 3, Banjara Hills, Hyderabad-34 P h . n o . 0 4 0 - 2 3 4 9 0 0 0 0 - e m a i l - a d v t @ t v 9 . n e t - w w w. t v 9 . n e t

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

Sajjan Kumar

Vice President, Imaging, Nikon India

The youth of today fits the bill of “work hard and party harder”. They possess the power to decide on their own and pave way for trends, despite of being treated as mindless cattle that constantly require hand holding. Today’s generation is very expressive and has a very strong opinion about things. They wouldn’t buy anything without doing their homework and are influenced by role models and peers. They love experimenting, using new gadgets, style and keeping themselves updated on latest happening.

My favourite youth brands Nikon COOLPIX and Apple Youth campaigns I like Cadbury, Vodafone, Airtel, Pepsi and Nissan

My favourite Youth Icon Priyanka Chopra

Favourite book or portal on youth Various blogs, especially on Wordpress

My last tweet and Twitter handle I’m not a regular tweeter but I like to keep myself updated with the twitter trends..

As told to Ruchika Kumar

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Pitch | July 2012

Communication to Commerce

PRESENTS

Converting Share of Voice to Sales

2012 12

Chennai: June 22, Radisson Blu, Egmore

Our heartiest thanks to our Sponsors, Speakers, Participants & Attendees!

IN ASSOCIATION WITH

an

Hyderabad: June 19, Taj Krishna, Banjara Hills

initiative

SUPPORTED BY

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

Samar Singh Sheikhawat Senior VP Marketing, UBL

My favourite youth brand Levi’s Jeans

My favourite Youth Icon Saina Nehwal. She is potentially the only true world champion that we have. And she happens to be from a small town. She is a classic example of substance over style.

I personally see them as very confused, but at the same time, very confident. They are faced with a bewildering plethora of choices in everything they do. It is difficult to paint the youth in one brush stroke because the rural youth is slightly different from urban youth. There is a fair amount of money and affluence in urban youth, they believe in living for today whereas I see rural youth being more hard-working, they have to struggle more since their aspirational levels are higher. So I see the youth as a mix. I see the smaller town youth in the next 20-30 years to actually garner much more appreciation and laurels for their efforts.

Favourite youth campaign 1.Flipkart campaigns.

2.The OLX campaigns. A very recognizable campaign and there are very strong Indian values in that campaign. It also illustrates the change in thinking of the previous generation and the new one..

Favourite book or portal on youth A lot of the research that MTV does on the youth is quite interesting

My last tweet and Twitter handle Not on Twitter. I am not a youth person you see. I am too old for all this As told to Arshiya Khullar

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Pitch | July 2012

How I see the youth?

There are no limits to the dreams and ambitions of a young Indian today. They are confident and willing to experiment – career, education and in all aspects of life Shalini Gupta

Head, Marketing, Sonata

My favourite youth brand Diesel

Favourite Youth campaign Hero (hum mein hai Hero)

My favourite Youth Icon M.S. Dhoni

As told to Arshiya Khullar

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

Today’s young adults can actually be described in just 7 characters - dynamic.

They subscribe to just one traditionwhat’s new? They are constantly looking for new ways to engage with the world around them.

Subodh Marwah Marketing Director, Carlsberg India

My favourite youth brand Abercrombie & Fitch (garments – real cool!)

My favourite Youth Icon Madonna and Sachin Tendulkar

The demographics of a ‘young adult’ consumer are being redefined as the market is moving towards more consumption oriented behavior. Today’s young adult is aspirational, technologically savvy, loves to spend on leisure activities, progressing fast on his/her career ladder and is ambitious to achieve professional success, but most importantly carving out a niche.

Favourite youth campaign cadbury’s

Favourite book or portal on youth Something which is out of ‘Tipping Point’ on ‘Hush Puppies’, which was reinvented when the ‘cool NeW York hip-hop kids’ started wearing them and the brand then took off all over again. A great case of finding a distinct positioning and using that to differentiate your brand and create a personality.

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As told to Arshiya Khullar

Pitch | July 2012

How I see the youth?

Tarak Bhattacharya

In my opinion the youth today are self-driven, motivated and dedicated to perform and achieve. They toil at work but yet they believe in enjoying life to the fullest. They strive to achieve greater heights and wish to be an idol for others to follow and do different things differently.

Chief Operating Officer, Mad Over Donuts

My favourite youth brand Samsung (all range: Tab, Mobile, Smart TV, etc)

My favourite Youth Icon Mark Zuckerberg- It’s not mere textual knowledge but focus on knowledge based learning that will ensure to broaden your sphere and accomplish promising results, do same things differently!

Favourite youth campaign Kit Kat ad (squirrel)- Get involved in work but don’t miss the best moments of life!

Favourite book on youth The Fountainhead byAyn Rand

As told to Arshiya Khullar

Pitch | July 2012

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COVER STORY YOUTH MARKETING

How I see the youth?

The Pride and Future of India.

My favourite youth brand Royal Enfield

Favourite youth campaign Fastrack!

Venki Padmanabhan CEO, Royal Enfield

My favourite Youth Icon Is MS Dhoni too old for that?

My last tweet and Twitter handle @VenkiWithAnI Bye Dara Singh. After a Dara Singh vs Killer Zapata gig in Dhanbad terrorised my kid sister for years. She always picked to be Dara and I had to play Zapata.

Favourite book on youth Great by Choice by Jim Collins

As told to Abhinav Mohapatra

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Pitch | July 2012

How I see the youth?

Ambitious, Performance Driven, Aspire for the best. Future of the country!

Vikaas Saxena Marketing Director, Red Bull India

Favourite youth campaign Fastrack My favourite youth brands Red Bull & Apple

My favourite Youth Icon Mark Zukerberg

My last tweet and Twitter handle @vikaas2009 RB X Fighters jams Delhi 2012

Favourite youth portal Facebook

As told to Abhinav Mohapatra

Pitch | July 2012

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COVER STORY YOUTH MARKETING

“We have never been a ‘logo presence’ brand” Rajiv Mehctta or, ire Managing D Puma India

Is there a change in consumer behaviour of youth lately?

The youth of today are constantly evolving and while there may not be any overt changes in their behaviour from last year they are becoming savvier with each passing day. In the last couple of years we have seen a lot of brands reach out to them in innovative ways – trying to engage rather than dictate to them. As a result, they now no longer want mere engagement but want to play a key role in driving the engagement – so they demand ownership and buy-in before the idea is implemented. This is the only way they would be willing to share, like and tweet about your brand event or idea – because their approval cannot be bought but must be earned. So with each passing day, month and year – the youth of India are becoming more digitally aware and active, more international in their outlook and more choosy about the brands they patronise.

What are the platforms besides the obvious digital media that you are

using to target the youth?

We have never been a ‘logo presence’ brand. By simply sponsoring a property we get no value, so our idea is to always do things differently and also get our audience to participate. For example – we wanted to get into the music space – because music is integral to every night out with friends and this lends itself well to our popular global Puma After-Hours Athlete campaign.

So, we decided that we wanted to own the vinyl space – what with vinyl collection becoming a rising subculture, and embarked on our ‘Puma Loves Vinyl’ platform. We brought together seven of the best bands, got them to record an original Puma Social song and will now press a limited edition Vinyl LP featuring these songs. We launched Puma Loves Vinyl with a massive gig in Bombay at Mehboob Studios – with some killer performances by the artists, vinyl art installations, and an Album Cover Design contest to excite the creative community. We got 1300 music lovers to throng the venue and they absolutely loved it. So we rely on BTL engagement and activations that are event led to target the youth. Moreover, we always try to do what no other brand has attempted before.

How do you see the youth in smaller

The youth in small towns are getting more exposed to city cultures and keen followers of trends in metros. They are very aspirational in their tastes

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towns and rural vis-à-vis metros?

The youth in small towns are getting more exposed to city cultures and keen followers of trends in metros. They are very aspirational in their tastes and preferences. They are equally digitally savvy and in fact their level of involvement with the digital medium is higher than youth in bigger cities.

We see the smaller towns as an area of growth for us as a brand and have made our presence felt in these areas by opening stores in small cities across the country in the past year.

What have been your marketing initiatives lately to target youth?

As mentioned – we had our Puma Loves Vinyl launch event in June and will continue to host store gigs featuring the artists on the LP over the next few months. We also did a very innovative IPL Campaign by producing Comic Books with our two teams – the Deccan Chargers and Rajasthan Royals. The comic books were very well-received by our audience!

We also kicked off ‘The Year of Speed’ with our Faastest Indian campaign – conducted in eight cities where the fastest Indian Man and Woman would win a chance to meet Usain Bolt! We got almost 18,000 people to sample our shoes and a great deal of PR. Our initiatives are aimed at targeting niche segments within the broader umbrella of youth. We reach out to music lovers, comic book enthusiasts and athletic, sports individuals with offerings that are tailor-made for them.  As told to Pallavi Srivastava -pallavi@pitchonnet.com

Pitch | July 2012

“The youth from smaller towns is far more experimentative” ath Prem Kam d President an ce Executive Vi lV ager, Channe General Man

What are your overall accomplishments as a youth brand?

Channel V’s legacy is entrenched in Indian pop culture for the last two decades.

But it’s really about being cutting edge.

Whether it’s about hosting India’s biggest college festival – Indiafest 2012 or going all the way back to launching the first ever reality show on Indian TV in the form of V Popstars. Today, we are the only holistic youth entertainment channel with fiction shows being runaway favourites with the youth and a one-year old café brand – The V Spot Cafe+Bar. So really,

our greatest accomplishment lies in creating an endearing Channel V experience for different platforms in different times.

Is there a change in consumer behaviour lately?

Or have they changed since last week, should be the complete question. The youth is the most dynamic group, let alone today’s group being the most informed ever. You just need to see the way our content has evolved over the years to understand periodic shifts in their tastes.

In the ’90s, music was a rage and the VJs were demi-gods. Today, YouTube has changed the way youth consume music.

What are the different platforms you are using to target the youth?

We can never undermine the importance

of mass media such as cross promotion on the Star Network or print and outdoor.

But the youth need a personal touch and customised communication that can be derived through focused activations through our Campus Managers. We are constantly developing evangelists, as it’s far more effective than pasting a message on a billboard.

How do you see the youth in smaller towns and rural vis-à-vis in metro?

The youth from smaller towns can be far more experimentative owing to their inherent hunger. The metro kids may have a broader perspective and ideas due to their added exposure. Ultimately, there’s no one rural or urban youth like there’s no one India.  As told to Ruchika Kumar -ruchika@pitchonnet.com

“Staying cool in the eyes of youth has become harder” Bhasin ew Simeran d, N Fastrack & ea Marketing H n Industries Brands, Tita

Is there a change in consumer behaviour of youth lately?

The youth today are more restless than ever before but more confident too. They consult each other a lot more, critique instantly and voice their opinions to the world in an instant. Within India, Tier-II & III town students are moving to the big cities to live their dream and have newer experiences. Brands have to constantly

Pitch | July 2012

keep pace with the speed of communication among circles of friends and work that much harder to be part of their conversations. Staying cool in the eyes of the youth has become a lot harder.

What are the platforms besides digital that you are using to target the youth?

Mobile phones are the new televisions for the youth. We are focusing a lot on this medium along with our efforts on web. We are also looking to use our exclusive outlets as the face of the brand to reach out to the youth.

How do you see the youth in smaller towns and rural vis-à-vis in metro?

The youth in smaller towns are very ambitious and aspire for big brands. They

are highly influenced by movies and sports. The disposable income in these towns is not a constraint according to us and therefore we are planning to open a lot of our exclusive stores in these towns to tap into the great potential.

What have been your key marketing initiatives in the past one year?

Focus on Digital media. Affordable products across categories with very unique designs.

Also, a large retail footprint to invite the youth to shop at our exclusive stores for the real brand experience. We now have over 120 Fastrack stores across India which will go up to 280 by March 2013.  As told to Pallavi Srivastava -pallavi@pitchonnet.com

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COVER STORY YOUTH MARKETING

“Youth is heavily contributing to growth of economy” of brands they consume.

p Katariam!

Sandeetin g Officer, Yu Chief Marke s India Restaurant

Is there a change in consumer behaviour of youth as compared to last year or the year before?

Youth is contributing heavily to the rapid change in the Indian economy and are fast becoming the darling of India Inc. The younger India is fuelling a rapid growth in the eating out segment as they have an innate desire for novelty and are open to experiment. They are also increasingly getting socially active and are eager to express their identity through the choice

How do you see the youth in smaller towns and rural vis-a-vis in metro.

How important are they and how are you as a marketer looking at them?

There are aspirational differences amongst the youth in smaller towns and metros. In metros the youth aspires for newer products & experiences, convenience, quality of life while in mini-metros & smaller towns, they are looking for value for money and availability of consumer experiences similar to those in bigger cities.

At Yum! our core target audience is youth that constitutes of college goers and young working class. We have a simple messaging for youth which is

great tasting food at compelling price points For instance our street wise range

by KFC which an affordable range of our popular products. Also we focus on innovative products across our brands like Krushers, Fiery Grilled and iPan Pizzas from Pizza Hut Delivery that reflect youth’s irreverence in their choice.

What have been your key marketing initiatives in the past one year to lure the young consumers?

Our marketing campaigns like So Good

by KFC, Bhook Patrol for PHD’s ipan pizzas are all youth- centric and have been received very well by our young consumers.  As told to Ruchika Kumar -ruchika@pitchonnet.com

“Youth in India are extremely optimistic” itly RuchiraceJPraesident - Marketing,

Executive Vi psiCo India (Flavours) Pe Beverages

Is there a change in consumer behaviour of youth lately?

Youth in India today are extremely optimistic and have a positive view of life and challenges. Consumers are increasingly seeking novel and exciting experiences.

What are the other platforms besides digital media that you are using?

With the first edition of the Mountain Dew Xtreme Tour in India, our primary

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objective was to drive increased consumer engagement by making them experience and witness action sports at a neverbefore scale in cities across the country.

Consumer workshops were organized across metros and smaller cities in addition to bike mobs in various colleges.

For 7UP, apart from the digital activation like TweetAThon, which trended globally, clearly touched a nerve resonating with youth.

How do you see the youth in smaller towns and rural vis-à-vis in metro?

The youth across the metros and smaller towns are the major driving force for brands like Mountain Dew and 7UP.

Our campaigns have always spoken to the larger psychographic – and here we find underlying themes that are common across all strata, whether its experiencing new adventures on Dew, or addressing the challenges to come out ahead with UPtimism on 7UP. Interestingly, our 7UP Dance For Me activity went across 21 cities in Tamil Nadu, Karnataka, Andhra Pradesh and Kerala in order to connect with a larger consumer base, with teams participating from towns like Guntur, Warangal, Trichy, Vellore and finally the winning team coming from Mangalore.  As told to Pallavi Srivastava -pallavi@pitchonnet.com

Pitch | July 2012

“Malls have changed the way youth conduct” attacharya Nilanjan BhC, Barista Lavazza & SAAR COO, India

Do you see a change in the consumer behavior of youth lately?

The youth of India is well informed and aware today. Changes in the consumer patterns started happening seven-eight years back, when the economic scenario changed in the country, coupled with the increase in availability of hang out places.

The mall culture, café culture and increased disposable income have changed the way youth today conduct themselves and manage their funds.

With changing lifestyle and consumption trends, youth today has a strong urge to experiment with new products and this has driven growth in the consumption of coffee out of home.

While the cappuccino has always been our hottest selling beverage, the youth today is more open to trying varied beverages in the menu. It is this changing consumer pattern that encourages us to bring at least two new changes / infusions in our menu in the form of a winter and summer menu every year.

What are the platforms besides digital that Barista is using to target youth?

We use on-ground promotions, in-store

activations, radio promotions, road shows and other such means which are initiated with an objective of bringing novelty to our guests each time they visit us. For example, Barista Lavazza also has an annual event called the ‘Friendship Jam’ through which we reach out to a large group of our followers across the country. The Friendship Jam offers youngsters an opportunity to jive over music and coffee. Organised across cities, the event invites entries from music lovers and performers, who are then called in to perform on two days. Top performers from two cities are invited to play with a celebrity brand at the end of the promotion, which happens closer to the Friendship Day in August.

How do you see the youth in smaller towns and rural vis-à-vis the metro?

The youth is the same everywhere. The youth in the smaller towns too are now open to experimenting and want to explore new places that offer great menu. Currently, Barista Lavazza has over 160 outlets in the country, catering to audiences from different sects and walks of life and our outlets in the smaller towns too have a very good following. We have our cafes in towns such as Kanpur, Lucknow, Ludhiana, Mohali, Vadodara, Indore, Mysore and many more, besides the leading metros and the response has been very encouraging.

What has the key marketing initiatives of Barista been in the past one year to lure the younger generation?

While the cappuccino has always been our hottest selling beverage, the youth today is more open to trying varied beverages in the menu Pitch | July 2012

We keep bringing in innovations in our menu offerings and in the promotions we do. In the recently launched Summer Menu ‘Vibrante Venezia’, we have introduced new sandwiches such as the Aromatic Cottage Cheese Sandwich (veg) and the Peperoncino Chicken Delight for the nonvegetarians, both of which have become an instant hit with the customers. Each year our newly launched menu brings in fresh flavors from Italy and our much appreciated and enjoyed by our guests.

To celebrate the completion of 12 years in the country and to mark the beginning of our thirteenth year, we recently celebrated ‘Bean 13’, a consumer engagement and celebrity event, where in we invited city based celebrities in Delhi, Mumbai and Kolkata to share and reminiscence their special moments when they were 13. The customer engagement at stores involved a 13-day guest gratification campaign in which consumers had to share ‘What’s your story, when you were 13?’. A Story board was placed across all Barista Lavazza Espresso Bars and Barista Lavazza Crème stores in the country and guests were asked to participate in the contest.

Other than this we have also recently launched ‘Bean-o-holic’ which is a loyalty card for the lovers of true Italian coffee.

Barista Lavazza also engages in marketing and brand alliances such as the one with Jet Airways, where in consumers, who are also JetPrivilege members can earn 5 JPMiles on every INR 100 spent at any of the Barista Lavazza Cafés across India. These are some of the activations we do round the year to keep our customers engaged and enthused. .  As told to Arshiya Khullar -arshiya@pitchonnet.com

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COVER STORY YOUTH MARKETING

10 media Youth brands

Beyond Facebook and Twitter, Pitch has its own favourites. And not necessarily, all are Tagline: Stay Raw

M

TV has established itself as one of the leading multimedia youth platforms focusing on an age group of 15-34 year olds. Not only on TV, MTV has also a strong presence online on its websites and social media channels as well as a line of consumer products in collaboration with Firefox bikes, Crusoe Innerwear and plans to launch condoms with KamaSutra, lingerie with Bewitch and EDTs in the future. MTV deals in different genres namely Bollywood, adventure, humor, fashion, lifestyle and fiction.

What do we recommend: Coke Studio, Crunch, Road to Love, Rush

Tagline: Rest Less

B

indass focuses not only on TV but has a 360 degree entertainment approach for the Indian youth. The brand is involved in on-ground events, digital and consumer products. The brand spans across genres like music, reality shows, comedy shows, on-ground activities, and events among others. With the punch line Rest Less and then there are the rest Bindass tries to establish itself as a brand that relates to the youth. Bindass also tries to create a community building platform to bring Indian Youth together with its programmes.

What do we recommend: Chikipedia, Date Trap 2, Fear Less, Super Dude

Tagline: Bloody Cool

W

ith a claimed reach of over 2.5 crore viewers per week in India, Channel V, is a media brand which has been quickly changing its face as per the changing preferences of the Indian youth.

Channel V, which has been a music channel for years has recently rebranded itself as a youth GEC. The channel has done away with its music programming completely and now has only fiction, reality shows and movies.

What do we recommend: Gumrah and Dil Dostii Dance

Tagline: The ultimate music destination

B

IG CBS Spark aims to revolutionise the English entertainment for youth with its offering. The key target audience of the channel is the youth between the age of 15 and 24 years. The channel goes beyond its TV shows to engage consumers. It runs many contests around music and engages consumers through mobile & online etc. For instance, the channel recently hosted a contest for the Bieber fans and got them to fly down to KL to meet with the artist and to watch his show.

What do we recommend: Great Gig in the Sky and Ultimate Top 50

Tagline: Jiyo Dil Se aking an approach that started functioning from the Tier II & III cities of the country, 94.3 My FM targets an age group below 35 years of age. The brand tries to make an emotional connect with its audience that relates to the consumers’ personality, lifestyle, attitude, aspirations & dreams. With the ‘Jiyo Dil Se’ punch line the brand tries to inspire the listeners to follow their heart. It is based on the system of change. My FM has an interactive website where one can rate the songs out of the playlist. It also has a section where one can view thoughts, share one’s stories and compete by writing articles and uploading videos online.

What do we recommend: My Song Rating, My Jiyo Dil Se thoughts

T

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Pitch | July 2012

PITCH recommends

lookingforadrevenues.Team-BHPisacaseinpointandcoolhangoutfortheyoungcarlovers Tagline: Har din ek nayi shuruaat

S

ince its inception in 2006, i next has evolved to keep pace with its ever changing, dynamic and quirky readers (read ‘youth’) from the Tier-II & III cities. With an interesting mix of serious and fun content, vivid photographs and engaging features, i next has surged ahead to carve a niche for itself in the reading routine of youngsters.

What do we recommend: Participate in i next’s on ground events like Bikeathon, Fresh N’ Crazy, Health Meter, Teacher Meter, besides others.

Tagline: India’s Coolest Youth Media Platform, Portal & Community

T

rying to target India’s youth, u’thtime has its presence as a website, magazine and on social network sites such as Facebook. The three platforms give a chance to the youth to showcase their views, thoughts, creativity and talents. The Magazine contains content which is youth centric and entails Career & Education, Entertainment, Fashion, Lifestyle, Health and Humor.

What do we recommend: Featured articles of the Dark Knight Rises, The Good Life, Out of the Box

Tagline: Just Another Magazine

J

AM magazine and jammag.com target the young generation with their wide range of articles and stories on issues and trends that are of interest to the young reader. They span across different beats like humour, music, movies, and food, has a section devoted to the campus life for the college goers, and also has a career section that posts exam notifications and offers career advice. From film, book and restaurant reviews to interviews with young authors, newsy stories, and even a list of all the events and college festivals across the country, JAM has it all.

What do we recommend: The Campus and the Humour sections

Tagline: Progressive Indian New Generation

A

magazine and a website (pingmag.in) that provide a platform to the youth and the young at heart to share their opinions and thoughts on a myriad of issues including fashion and style, technology and gizmos, health and fitness, entertainment and education. And if the increasing outdoor advertising and presence across metro stations, shopping arcades, and colleges is anything to go by, Ping is certainly going places.

What do we recommend: ‘I came into acting by default’- An interview with actor, Nandita Das Tagline: The Definitive Indian Car Community

T

eam-BHP, “enamoured of cars”, claims itself to have come together to form a bohemian clan. It is an online community “of, by and for Indian petrol-heads”. Team-BHP does not accept any ad revenue or funding from the automotive industry. The community portal is a one-stop destination to find news and opinion on Indian cars. Want to know user experiences, head on to Team-BHP. Have a problem with your car, ask the experts here. Want to know, where you can get the funky alloy wheels for your car, there’s always someone ready to reccomend a store or dealer nearby in your city.

What do we recommend: There’s an ocean of reviews and recommendations. Head on.

Pitch | July 2012

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COLUMN

It’s an App App App World While some apps help us perform our current set of activities differently; others bring on a completely new set of things for us to do. Let’s have a look at some of these apps

I

f Stanley Kramer were to make a sequel to his 1963 classic “It’s a Mad Mad Mad World” in today’s time, he would call it “It’s an App App App World” – and that Sandeep Karwal would be nothing but the truth.

The author is Partner at MarketGoal & helps brands develop their digital foot-print Imagine if your cellphone was sandeepkarwal@marketgoal.com taken away from you and you had to do without it. It’s almost @sandeepkarwal un-imaginable to think how you would even survive without it!

We are not far away from a time when apps will occupy the same significance in our lives.

While some apps help us perform our current set of activities differently; others bring on a completely new set of things for us to do. Apps for health and fitness, apps for productivity, apps for entertainment, apps for cooking, apps for scheduling…the list is almost endless. And then there are some apps that go a step further and have an added dynamism to them by way of social media integration. What that means is that you can share your activities on the app with your “friends” who are using the same app.

Let’s take a look at some interesting apps that are catching the fancy of users around the world.

Endomondo Endomondo is a sports app that helps you track all your sporting activities that involve movement across a distance. Not only that – it helps you connect with other

friends using the same app, to know what they are up to.

So if you are into jogging, running, walking, cycling, roller skating/blading etc this is the app for you. You can install the app on your phone and you are all set

- not only to track your data but also monitor your performance.

What makes this even more exciting is that you can connect with like minded people. Those into sports will appreciate that, “competition” always inspires you to do better. And Endomondo has that motivational element built right into it, because it allows you to follow your friends’ activities, support their efforts and even challenge them.

Live Up (by jawbone.com) Now this is what I would call a lifestyle app. While it helps to track your activity much like Endomondo, it also does a whole host of other stuff.

To make this work you need a UP wristband in addition to your iPhone app. Together, these help you track your steps, distance, calories burned, pace, intensity

Endomondo is a sports app that helps you track all your sporting activities that involve movement across a distance. Not only that – it helps you connect with other friends using the same app 56

level, active vs inactive time, GPS routes and more.

More often than not, we spend our workday sitting at a desk without taking too many breaks for any physical activity. It’s not because we don’t want to move, but because we are so engrossed in work that we forget to. Occasional walks around the workplace or simple stretches to ease the muscles can do us a whole host of good and “Live Up” helps you do just that. You can program the UP wristband to vibrate on your wrist to remind you to move

when you’ve been inactive for too long. You control the interval and timeframe. So that’s feature number one.

Feature number two is its ability to track your sleep pattern. Put the band in sleep mode and it automatically tracks your hours slept, deep vs light sleep, awake time and overall sleep quality.

And then its silent alarm vibrates on your wrist and intelligently wakes you up at the ideal moment in your natural sleep cycle just before your desired wake-up time.

Pitch | July 2012

Not only that, this app can be used to track what you eat and how you feel after eating it. The Eat & Learn feature asks you how you feel after you’ve eaten a meal .And over time you can see which meals make you feel good and which don’t.

It even offers you multiple challenges that make you move more, sleep better and eat smarter. And of course it’s a fully social experience that helps you challenge, support, compete and collaborate with friends. #HashtagMom This is really not an app on its own but something you can add to your Foursquare account to improve your bond with your mom. Imagine you are out of the house

All you need to do is go to http://hashtagmom.com and add ‘#mom’ to your Foursquare check in. And when you check in to your destination, she’ll get an automated call wondering how to manage those frontiers.

The same is true for our contact list which is ever growing-all thanks to social media, the re-discovery of old friends and the connections with new like minded individuals.

We know various people across our various social media accounts and can never see all their information in one place. Enter Brewster. This app consolidates everyone you know across different social media networks such as Facebook, Twitter and even email platforms and creates unique profiles for each person. The profiles display contact information and social information all in the same view.

How does this help? You can search through your contact list based on name, city, interests, or music preferences. Besides, you can have easy access to your entire contact list, connect with the people that you communicate with more often,

- and your mom is worrying about your whereabouts (as all moms do). You forget to call her that you’ve reached your destination and she keeps trying to call you to find out that you are safe. This app texts or calls your mom when you reach your destination. All you need to do is go to http:// hashtagmom.com and add ‘#mom’ to your Foursquare check in. And when you check in to your destination, she’ll get an automated call or text – so you can enjoy your outing and she can stop worrying.

Brewster Now, isn’t this the app we all have been waiting for. While technology opens up many new frontiers for us, we are often left

Brewster consolidates everyone you know across different social media networks such as Facebook, Twitter and even email platforms and creates unique profiles for each person Pitch | July 2012

and get social media updates for your contacts –all in one place.

Thumb Get real time answers to your questions in the form of a Thumbs Up or a Thumbs Down. And you choose who you want to ask. So the question can be posed to the general masses or to a select demographic that you choose. In addition to the Thumbs Up or Thumbs Down it also allows the ability to add a comment and communicate with the people who have commented on your question. You can also post likes and dislikes to your profile and share your opinion via Facebook, Twitter and SMS.

Now, these are just a few of the apps that are active on mobile phone screens around the world. Choose the one that catches your fancy and see how you can add some more fun to your digital life. While you enjoy your new apps, we will continue scanning the market and bringing you new apps from time to time. So watch this space. n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

57

YOUTH FOOTBALL

A Goal?

The cricket crazy nation seems to be catching on a new sports frenzy: football.

How are marketers milking this latest sport infatuation of the country?

By Arshiya Khullar

T

he café was abuzz with loud, frantic sounds of cheer, and a deafening roar when Spanish player, Fernando Torres hit a goal in the Euro 2012 finale between Spain vs Italy. This wasn’t a sight in some European country, but a familiar scene across India. The roaring fans weren’t the nationals of the countries playing the match, but football obsessed Indians. Move over cricket, football is the latest sporting fever gripping the country.

The spurt of football-themed bars and cafes, football merchandise stores and training camps by international football clubs aren’t the only signs of the growing football frenzy in the country. Marketers are also cashing in on the latest sport infatuation in the country.

Eyeing a new goal Telecom company, Bharti Airtel recently announced a new football initiative in association with Manchester United.

‘Airtel Rising Stars’ is a three-month long under-16 soccer talent hunt, which will be conducted across 16 cities in India to choose talented footballers who will get to train with the Manchester United football club.

Earlier, this year also saw Pepsi change its game from cricket to football and launch its first football campaign in the country. The campaign kick-started with a football themed ad film featuring brand ambassador Ranbir Kapoor,

and has gone on to initiate many more activities including giving away football kits to Indigo travellers in a customer engagement marketing initiative and the recently concluded T-20 football tournament, an on-ground campaign that saw youngsters across the country vying for the coaching by football sensation and Pepsi’s brand ambassador, Didier Drogba as well as a game of football with Indian cricketers.

With brands making a departure from

cricket to leverage the rising football fervour, they are banking on the game’s appeal with the younger generation to drive sales. At the same time, footballcentric marketing campaigns and such tournaments are also helping to further popularise the sport in the country.

For Airtel, ‘Airtel Rising Stars’ is a strategic step in the brand’s youth-centric positioning and according to an Airtel spokesperson, the association blends in well with its fresh, youthful and dynamic

The spurt of football-themed bars and cafes, football merchandise stores and training camps by clubs aren’t the only signs of the growing football frenzy in the country 58

Pitch | July 2012

brand identity. “From cricket, to Formula 1, to soccer - Airtel continues to associate with all sports categories that appeal to the discerning urban youth audience of today. Specifically, soccer as a sport has a cult following worldwide - and the same fervour and excitement towards football can be increasingly seen in this part of the globe,” he explains.

The latest on-ground football tournament is not the first time that Airtel has associated itself with this sport for its partnership with Manchester United since 2009 has seen many such footballcentric campaigns in the past.

For Pepsi too, its football-centric campaign is a part of its endeavours towards creating campaigns for its core target audience, the youth. Explaining the insight behind moving to a new sport, Homi Battiwalla, Category Director, Colas, Hydration and Mango Based Beverages, PepsiCo India says that the new campaign is a way to popularise the sport at the grassroot level. “Pepsi has always taken the lead in celebrating newer and emerging youth platforms; from cricket to movies to music, the brand has successfully created memorable campaigns and experiences for Youngistaan. Taking the thought forward to the emerging sport of football, we launched our first football campaign in the country. While the sport has always enjoyed near fanatical following in certain pockets of India, we see huge interest among the urban youth as reflected by the high viewership across popular football platforms on TV,” he adds.

To accentuate its youth appeal, Pepsi also leveraged the social media platform.

Having sensed a significant overlap between young digital users and football fans, the digital platform was made the primary communication and recruitment channel for teams taking part in the T20 football matches. According to Battiwalla, there was tremendous buzz created around this campaign on the digital front. Pepsi India’s Facebook page grew from 2.06 million fans to 3.17 million fans and on YouTube, the campaign

Pitch | July 2012

received 1 million views.

Building youth appeal The football craze in the country has also been amplified by the summer training camps and football schools being set up in the country by international football clubs. In May, FC Barcelona became the second European football club to start its own football school in the country after Manchester United. Named FCBEscola, it will be run in partnership with Conscient Football to provide foundational training to budding football enthusiasts. While the first school will be set up in Delhi, there are plans of moving to other cities like Mumbai, Bangalore, Kolkata, and Goa. There are also reports that suggest that Spanish club, Real Madrid will also be setting up a football school down

“We see huge interest among the urban youth for football as reflected by the TRPs on TV” Homi Battiwallai Category Director, Colas, Hydration and Mango Based Beverages, PepsiCo India

south. There already exists a Real Madrid Social and Sports Academy in Kolkata.

Leaving aside the fillip that such academies and football marketing gives to a wider acceptance of the sport in the country, from a sales and consumerconnect standpoint, isn’t football a seasonal attraction, a hype that is built-up during international football tournaments and fizzles out the rest of the year?

Battiwalla disagrees on the sport being a seasonal passion. “Internationally, football creates buzz around the year with tournaments like EPL, La Liga, Champions League, EURO amongst other initiatives. Even in India, our football campaign was running during the peak of the IPL with no let up of intensity or excitement,” he says.

According to him, the excitement around Pepsi’s football campaign has generated the best buzz that the company has ever received. The beverage company will continue its association with the sport, and football and cricket will coexist in its marketing endeavours.

Airtel’s spokesperson shares similar view and feels that even though cricket retains the numero uno position as the most beloved sport for Indians, football, with a worth of Rs 200 crore in the country is not a seasonal sport and enjoys significant popularity as a domestic sport round the year.

While the game is certainly garnering attention from the international and domestic arena, with the international players as well as marketers eyeing the

59

YOUTH HP

Cltr + Shift

Will HP’s strategy to shift focus to youth pay dividends?

Or is it too late?

By Ruchika Kumar

H

ewlett Packard (HP) has been a name synonymous with business oriented computing devices.

However, in the last one year the company has been shifting focus to consumer devices targeting the style conscious youth.

The brand is betting big on the recently launched Ultrabooks to shift its marketing focus to the young generation of consumers and becoming a lifestyle brand.

“Our product strategy is now skewed towards offering customers, technology products that best suit their lifestyle needs.

Our marketing strategy and media plan too are therefore designed to build brand affinity and have been customised to suit this target segment, which is unique in its own way,” says Ranjivjit Singh, Chief Marketing Officer, PPS, HP India.

Targeting Gen Y The company identifies this TG as ‘Millennials’ (people born between 1980 and 1995), which form a significant part of HP’s target audience for consumer technology products as they have the power to decide and define the trends. “For us, this is a very interesting target group to work with as millennial are typically keen on making well-informed decisions and dislike being in a blind spot,” adds Singh.

According to the company, the youth of today looks for convenience and portability along with high performance computing and entertainment capabilities. Hence, in terms of product portfolio, the company has launched around 27 new consumer products and Beats Audio technology to woo this music loving generation of consumers. Additionally, the company is going aggressive in its communication and retail strategy to reach out to the youth.

60

Ultra conscious move?

But being a name which is more popular for being a business brand, will HP be able it shed off its corporate image in a highly cluttered and competitive market like India? According to Bharat Nagpal, Technology Consultant at iGyaan, the move will be a slow process as currently HP has a more business and more corporate image. “Even if the company has products for consumers, the market doesn’t know about it,” he adds.

Nagpal opines that HP needs to have a nicer portfolio of products in comparison to its competitors. As far as the market appeal of the HP products is concerned, it faces a certain challenge from brands like Sony Vaio that has a colourful and youthful appeal.

According to Rohit Khurana, CEO & Cofounder, Technixmedia, at present, HP is

“Millennial are typically keen on making wellinformed decisions and dislike being in a blind spot” Ranjivjit Singh CMO, PPS, HP India

more of a corporate or enterprise oriented brand. In consumer segment or multimedia segment, HP is a comparatively less preferred brand. It is emerging on that front with its new TV commercials like that for ink-advantage printers and Ultrabook commercials.

Hence, HP on its part is banking on its latest Ultrabook series to tap the young consumer.

“For the youth, the largest segment of our target audience, 2012 is the year of Ultrabooks. We are focusing on Ultrabooks, which will deliver both performance and style - without compromising on connectivity or any other key features of the mainstream Notebooks, for instance, ports, battery life, thin and light form factor, etc,” shares Singh. As a brand, HP claims to have moved beyond technical specifications and has started focusing on user experience.

The company has also tapped into this segment with the Spectre and Folio Ultrabooks and with the new Envy 4 Ultrabook systems. For the record, the price range for Envy Ultrabook starts at Rs 57,990.

Also, to make its product portfolio appealing and aspirational to this TG, the company has infused its Mosaic design technology to its entire consumer notebook portfolio, which is more colourful and slim and easy to use. Thus, its ‘We Make it Better’ campaign for Envy 4 highlights the key features of portability and mobility targeting the ‘always on the move’ youth.

Pitch | July 2012

Playing a different note The company is also focusing on building music inspired technology to grab the attention of its young TG. Singh reasons, “The youth in our country is really passionate about music. As per a recent research (Synovate Study) 23 per cent of Indian youth said they spent more time listening to music and 83 per cent said music formed a very important part of their lives. Keeping this in mind, HP decided to give its young consumers the option to experience best quality music at the most affordable prices.”

HP launched HP Pavilion Dv6 with the Beats Audio technology, developed in collaboration with music heavyweights Dr Dre and Jimmy Iovine. Through this technology, users can enjoy their favourite songs the way artists composed it, available across a wide range of HP notebooks and PCs starting at Rs 24,000.

Tuning into digital In addition, the company has extended its association with music to the digital space, which it uses as an important platform for communication. Recently, the company launched a contest on its Facebook page asking fans to submit original music scores to win a Beats Audio laptop signed by Pentagram. The Editor of Rolling Stone India reviewed 60 original submissions and HP fans voted to select Ankit Bhardwaj, a young aspiring musician and student as winner. In March 2012, HP gave the winner an opportunity to prove his talent by creating a HP community song.

Further the company also indulged in crowdsourcing lyrics for the song on Facebook page, which were given to Ankit’s band to create music. The music video carried profile images of fans who submitted the lyrics used in the song. “The video has caught attention of LHInsights, which called it ‘the first-ever crowdsourced song from a Facebook community’ and one of

“Apart from Compaq Presario, HP’s mutlimedia offerings have been plain and simple” Rohit Khurana CEO and Co-founder, Technixmedia

the most innovative practices in Facebook marketing,” adds Singh.

Within just months of launching the HP India Facebook page, the company garnered 1,84,000 fans. “Our aim is to not just connect but engage with our audience.

We will actively continue engaging with our online audience like bloggers and other influencers as well as expand presence to other social media platforms. So digital plays a significant role and a major part of our marketing spend will go there,” shares Singh. Khurana too agrees that in today’s world, buyers (especially youth buyers) consider products reviews more seriously compared to the TV commercials.

360-degree approach Beyond digital, the company also focuses on TV, Print, Out-Of-Homes, advertisements and mall activations to engage with the customers. For this, HP has tied up with brands like Intel and Microsoft on both ATL & BTL campaigns. With the increase in online search for best product deals, the company has also tied up with e-retailers like Flipkart and Yebhi.com to tap into this

In terms of product portfolio, HP has launched around 27 new consumer products and Beats Audio technology to woo the music loving generation Pitch | July 2012

emerging trend of selling online. This is backed by a strong retail strategy, thereby engaging the consumer at various touch points.

The company currently has 300 plus HP World stores in India. “We are here looking at a proposition based approach of display matched by interesting experience zones and kiosks where customers can come and ‘get up & personal’ with the products, feel energized about the innovative offerings and make well-informed purchase decisions,” adds Singh. HP offers product support through authorised service delivery providers spread in 178 cities across India. These service partners have engineers trained and certified on HP products.

Challenges ahead HP’s Singh feels that owing to the brand’s wide portfolio and constant technology innovations, it is the unparalleled leader in the market without any other competition. But Technixmedia’s Khurana feels that apart from Compaq Presario that targets students etc, HP’s mutlimedia offerings have been plain and simple as far as consumer devices are concerned. Thus, the brand’s appeal and its focus on youth are not in sync and it has to go a long way to transform into a consumer centric brand.

He adds, “At present, Dell seems to be one of the leading ones in this space because of its add-on services like in-house (on-site) repair support, phone support and low SLA times to service the devices compared to any other brand in the Indian market. They also provide damage insurance options on their products which gives consumers extra confidence in them.”

However Singh feels, “This industry has always been competitive, but for any brand to survive and be profitable, two things are really important— innovation and agility. This explains our strategy - having a broad-based technology leadership and providing experience to our consumers by meeting their requirements. These would be the differentiators for us. If we take care of these, everything else will follow.” n -ruchika@pitchonnet.com

61

COLUMN

Blink and the purchase is done It is critical for marketers to understand the role of emotions in human decision making and behaviour

M Deepak Bhatt

Founder, Global Management

writetodeepakbhatt@gmail.com @hellomrbhatt

alcolm Gladwell enlightens our thinking with his book Blink, a fascinating exploration of how decisions are made in the blink of an eye, before consumers even realise they’re making a decision. He suggests “we think without thinking.”

Gladwell’s effort to share emerging insights into how our brains work is timely. In this decade, we are learning more about how humans think and feel and what drives our behaviour than the whole of our discoveries in the time since Sigmund Freud dreamt up the idea of psychoanalysis. This has profound implications for marketing and brand professionals. As it turns out, these developments are revealing just how faulty and inadequate conventional research methods are, when it comes to truly understanding consumers.

What’s behind blink?

In Blink, Gladwell urges that people make decisions through rapid cognition and a concept known as thin-slicing—the ability of our unconscious to find patterns in situations and behaviour based on very narrow slices of experience. More than we realise, we evaluate a situation or a brand and frame our response before we ever consciously think about it. When we thin-slice, we recognise pat-

terns and make snap judgments, we do this process of editing unconsciously. We first see and perceive a colour several hundred milliseconds before we can think or say “red light.” Our foot seeks the brake long before we actually think about stopping, that is, if we think about it at all.

As Gladwell warns, “while people are very willing and very good at volunteering information explaining their actions, those explanations, particularly when it comes to the kinds of spontaneous opinions and decisions that arise out of the unconscious, aren’t necessarily correct. Finding out what people think of a rock song sounds as if it should be easy. But the truth is that it isn’t, and the people who run focus groups and opinion polls haven’t always been sensitive to this fact” (Gladwell, 2005, p. 155).

Finding blink Brains are pattern machines.

(Hawkins and Blakeslee, 2004) These patterns make blink moments possible. But, if you are a marketer looking to capitalise on a blink phenomenon, be aware the brain cannot command itself to go into “think blink” mode.

Instead, it involuntarily retrieves from memory the feelings that drive blink encounters. Our brain does not remember exactly what it sees, hears or feels. We don’t remember or recall things

Brains are pattern machines. These patterns make blink moments.

If you are a marketer looking to capitalise on a blink phenomenon, be aware the brain cannot command itself to go into “think blink” mode 62

with complete fidelity—not because the cortex and its neurons are sloppy or error-prone, but because the brain remembers the important relationships in the world, independent of details. (Hawkins, 2004) The relationships that we feel are important in our world are stored as images in our unconscious mind and are linked directly to our emotions. In fact, we don’t really think in words, but more in pictures or images.

The brain is elegantly designed to store whole concepts within an image. We store memories as images because they are more meaningful and easier to access quickly and automatically.

Emotions are largely responsible for creating these memories and are the key to unlocking the meaning within.

It is critical for marketers to understand the role of emotions in human decision making and behaviour. Raised in Western culture, we are well indoctrinated in the forces of logic and reason, but we’ve lost sight of the essential role emotions play in determining human behaviour. In fact, all human behaviour is driven by emotional input derived from these stored visualizations. There are two systems in the brain. One is for logic and reason. It resides in the neocortex, the outer layer. The other is found in the limbic system, the emotional part of the brain. The emotional components appear in very discreet, well-identified and interconnected regions of the brain. The interconnection

Pitch | July 2012

occurs in a handful of brain sites that are collectively known as the limbic system.

One site in the system, the amygdala, is the brain region responsible for the subjective experience of the emotion. Another site, the hypothalamus, is responsible for triggering the physiological response of the emotion. The hypothalamus, amygdala, and cortex all feedback on each other in a complex alchemy of emotion and reason to coordinate the appropriate behavioural response. This information is also saved and stored by a third member of the limbic system, the hippocampus. All of these brain regions, from the higher cortex to lower limit systems, converge in a single brain region known as the cingulate cortex. It is in the cingulate cortex that decisions are made. Reason and emotion commingle and we are able to coordinate our emotional response to direct our actions and thoughts.

One very important scientific aspect of this whole process is that we know the decision making process does not work in the absence of an emotional signal from the limbic system. Left to its own devices, the consciously thinking part of the brain is incapable of making a decision. The implications of this for marketers are inescapable.

From the head to the heart Revealing patterns in the brain through a methodology called Emotional Research, a psychoanalytic-based technique designed to tap into memories, makes it possible for consumers to access emotions that drive their behaviours. Through directed relaxation and visualisation exercises, consumers can recall experiences and reveal underlying emotions that cannot be accessed via conventional research. Visualisation is critical to unlocking the emotional drivers. Jim Hawkins, creator of Palm and Handspring and the founder of the Redwood Neuroscience Institute discussed this in his provocative

Through directed relaxation and visualisation exercises, consumers can recall experiences and reveal underlying emotions that cannot be accessed via conventional research book, On Intelligence. “The next time you tell a story, step back and consider how you can only relate one aspect of the tale at a time. You cannot tell me everything that happened all at once, no matter how quickly you talk or I listen. You need to finish one part of the story before you can move on to the next. This isn’t only because spoken language is serial; written, oral and visual storytelling all convey a narrative in serial fashion. It is because the story is stored in your head in sequential fashion and can only be recalled in the same sequence. You can’t remember the entire story at once. In fact, it’s almost impossible to think of anything complex that isn’t a series of events or thoughts” (p. 70).

You can easily experience firsthand how Emotional Research works as you read this. Follow these steps as described.

First, think about a time and place when you were very relaxed. Close your eyes so you can see it better. In your mind, go to that time and place. Now, scan the scene very slowly from left to right and describe what you are seeing. Notice all the little details. Who is there with you? What time of day is it? What colours do you see?

What is the light like? What are you thinking about? What are you feeling?

Now, did you go to the beach or some body of water as we see most of the population do in our research? This is because the desire to be near water is very primal human behaviour and a clear indication how this research can powerfully tap into the underlying emotional drivers.

Finding brand blink Emotional Research, like in Brandtrust’s Emotional Inquirysm, reveals the

Keeping promises builds trust, which is among the most basic of human emotions. To impact our company’s bottom line, we need to get in touch with our customers’ emotions Pitch | July 2012

elements that create a brand or a blink experience. The directed visualisations of the experiences that first encoded the emotion in a person’s memory banks are essential. This unlocks the memories, the emotions and the feelings that influence people’s behaviour when faced with a similar experience. For the purpose of brand research, imperfect recall is not an issue. We are simply trying to uncover how the subject feels about a particular experience related to the brand because those feelings drive his or her behaviour.

We discover the specific things that actually cause an emotional response related to blink or brand experiences. The sound of your mother’s voice, a picture of your grandmother’s house, the memory of the loss of a loved one, the aroma of a favourite food, and thousands of other experiences trigger emotional responses.

We also explore the deeper feelings of the emotion and how they invoke behaviours that make up the landscape of all of our psychological experiences. Revealing these emotional responses, common to most people, provides the insights into what a brand must say and do to succeed.

As a result, we’re confirming brands are about feelings, not facts. Buying decisions are made on promises that transcend products, and promises are rooted in human emotions. Quite simply, brands are built on trust. Making and keeping promises builds trust, which is among the most basic of human emotions. To impact our company’s bottom line, we need to get in touch with our customers’ emotions. As marketers, we must have our own blink moments and embrace the reality that branding is about “brain surgery” and psychology. Because, how your customers feel about your brand isn’t a casual question. It is the crucial question. n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

63

CELEBRITIES SANJEEV KAPOOR

Can he cook a marketing story?

From a cookery show host to a hotelier and now a brand endorser of many FMCG brands.

What makes Sanjeev Kapoor click?

By Arshiya Khullar

I

personally take all my brand endorsement decisions. I am the first point of contact, not the last one. So it goes without saying that I delve into depth and detail about the brand, product, everything.

I would never endorse a brand if I didn’t believe in it.” - Masterchef Sanjeev Kapoor.

Sanjeev Kapoor is not just an icon for food connoisseurs, but also the marketing world’s favourite chef since his Khaana Khazana days on Indian television. He has been associated with many brands such as Natura Diet Sugar by Sugar Free, edible oil brand, Sweekar, Sapat Tea, and the recently announced association with Tata i-Shakti range of pulses.

The chef special While all of Kapoor’s endorsements primarily lie within the ambit of food-related and cooking brands, is there a deeper synergy and connect between his personality and that of the brand?

Having been a visible and known face on TV all these years, Kapoor enjoys instant recognition and mass appeal. And it is this TV presence spanning more than a decade that is the essence behind his popularity factor and the impetus behind his fan following. Manisha Tripathi, National Director, LiquidThread, Starcom MediaVest Group agrees with Khaana Khazana being his window to the celebrity world. “He has had the unique opportunity to influence the cooking habits of an entire generation or two that was starting to cook or looking for newer options in cooking, through the ’90s

and early 2000s, not just in India, but also the Indian diaspora overseas,” she opines.

According to Himanka Das, Senior VicePresident, West, Carat Media, before this show, master chefs did exist but were never registered in people’s mind. “The programme became popular across target audience, over a period of time Khaana Khazana and Sanjeev Kapoor became synonymous and slowly entertainment industry acknowledged him as a celebrity chef,” he explains.

Kapoor’s awareness and recognition is more within a certain consumer profile, which helps brands in attracting its target audience better. Explaining the dynamics at play, Ramanujam Sridhar, Chief Executive Officer, Integrated Brand-Comm, says that if a food-related or cooking brand has identified its target audience, which would either be a woman homemaker, a cooking enthusiast or someone who is familyoriented, Kapoor is the perfect fit in each of these. “He is at the top of mind recall for the target customers of most of the product categories he endorses and his presence would make a huge difference to the brand’s awareness,” he says.

However, more than anything else, it is his credibility factor and his vast expertise, having been in the food industry for years that makes him a relevant brand endorser for food category and other related brands. Sridhar shares the same opinion and feels that such associations send out a strong signal. He

candidly points out that such a brand association is different from those by Bollywood celebrities, who are not experts but only add entertainment value.

Homemakers’ choice According to the chef himself, one of his major strong points is his ability to understand the Indian consumers. “Whether it is content on TV or in the kitchen, I am able to create an empathy with the consumer,” he says.

On the brands that would go well with his personality attributes, Tripathi feels that while the more recent, new age, premium,

Having been a known face on TV all these years, Sanjeev Kapoor enjoys instant recognition and mass appeal 64

Pitch | July 2012

edgier brands may not be an ideal fit, it is the cookery-related brands, rooted in the ethos of the ’90s and 2000s that would work best for him.

Sweekar, the relaunched edible oil brand from Cargill Foods signed Kapoor lately.

According to Aseem Soni, Director – Consumer Sales, Cargil India, Kapoor blends in perfectly with the brand’s new proposition of ‘Ghar Ka Restaurant’ because of his connect with homemakers. “He not only imparts the knowledge and skills, but makes homemakers confident of the outcome.

His ability of making seemingly difficult restaurant dishes easy, yet healthy, makes him the right brand ambassador,” he says.

Besides engaging in consumer interactions through BTL activations, the chef has also shared cooking tips and exclusive recipes with Sweekar, and one such recipe is distributed free along with the product.

The recent announcement of Tata Chemicals roping in Kapoor for its unpolished range of dals, i-Shakti, is also based on the same premise of putting an expert stamp on its products. “With the association of Sanjeev Kapoor and Tata i-Shakti unpolished dals, we think that we will enhance our engagement with consumers who seek great tasting food with a healthy dose of nutrients,” says Ashvini Hiran, COO, Consumer Products Division, Tata Chemicals.

The differentiating ingredients The celebrity chef has not just beaten the likes of the popular younger generation chefs like Vikas Khanna but has also scored ahead of iconic figures like Jiggs Kalra and Tarla Dalal when it comes to bagging endorsements. Tripathi, however, does not write off the younger chefs. “There is definitely a space for a younger, more exciting food personalities to shine through but media has come a long way and for the younger brigade to make an impact will be much more complex and would need to go across a mix of platforms in a way that really catches the fancy of the Indian food lover,” she explains.

Das shares a similar view. According to him, even though Dalal and Kalra are undoubtedly master chefs and probably in

Pitch | July 2012

Kapoor just not beats the likes of younger gen chefs like Vikas Khanna, but also scores ahead of iconic figures like Jiggs Kalra and Tarla Dalal the same league in the master chef fraternity, it is Kapoor’s television presence that has increased his popularity. “Considering the cumulative exposure and the investment that has gone behind promotion of Sanjeev Kapoor whether as a host or while he endorsed brands, Sanjeev Kapoor is bound to score much high than these two,” he opines.

Any brand’s marketing strategy and choice of celebrity endorsers is driven by a cost-benefit analysis. With the huge investments associated with having a brand ambassador, companies have to weigh in cost factor as well as the benefits derived from the celebrity presence. In Kapoor’s case also, the perceived benefits of signing him, along with the added expertise and connect that he brings is likely to outweigh the costs incurred.

According to Sridhar, Kapoor is much above all the other celebrity chefs at present and advertisers will pursue other food personalities only in certain circumstances. “If Kapoor becomes overexposed and starts endorsing multiple brands, then consumers might start having uncertainties recalling the specific,

“Kapoor’s brand association is different from those by Bollywood celebrities, who are not experts” Ramanujam Sridhar Founder CEO, brand-comm

individual brands he endorses. In that case, a brand may switch over to someone else,” he opines.

Donning many hats Besides being a known chef, Kapoor’s entrepreneurial ventures have also helped in building his brand image over time. He launched ‘WonderChef’ range of cookware, kitchen tools, and accessories and ventured into the restaurant business, Indian Cookery Pvt Ltd, which now boasts of a slew of successful restaurants such as the flagship brand Khazana, The Yellow Chilli, and Sura Vie, among others. Last year also saw the chef launch his own, 24X7 food television channel ‘Food Food’ amidst much pomp and show. Kapoor has also authored a wide array of cookery books.

While he helps marketers in promoting their products, what is the marketing strategy undertaken by the chef himself for all his ventures?

According to Kapoor, for every business vertical, there is a separate business and marketing plan. So while ‘WonderChef’ would have more point of purchase marketing and internet marketing, a totally different approach would work for the restaurants. “Barring the television channel, we have not looked at aggressive marketing plans for any other ventures because our belief is that first we should be able to create a product or service that has the ability to create a pull,” he explains.

While he seems to be making all the right moves, both in his own ventures as well as his endorsements, there are challenges as well. According to him, his ideas and thoughts are very unique but at the same time, the underlying risk factor is also equally high. “Since there is no one to follow, I have to create my own benchmarks, and that is not an easy thing to do,” he says.  -arshiya@pitchonnet.com

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CELEBRITIES VISWANTHAN ANAND

Checkmate?

With being the numero uno chess player from the country, what stops Viswanathan Anand from endorsing more brands?

By Arshiya Khullar

I

ndian chess Grandmaster and recipient of the second highest civilian award Padma Vibhushan, Viswanathan Anand has quietly and diligently worked his way to become one of the greatest sporting legends of India. While the world chess champion enjoys an iconic status among chess enthusiasts across the globe, it is the celebrity-driven advertising world that has not yet cashed in fully on this sporting genius.

The chess player has been associated with only a handful of brands that include NIIT, AMD India and Parle-G. While these brands have leveraged Anand’s intelligence quotient and intellectual achievements, most other brands are yet to explore his brand attributes.

Intelligence quotient vs cool quotient According to Harish Bijoor, CEO, Harish Bijoor Consults, Anand’s key personality attributes are solidity, true blue intelligence, poise, and a calculating mind. For brands that want to rub off some of these traits

“Anand’s key personality attributes are solidity, true blue intelligence, poise, and a calculating mind” Harish Bijoor CEO, Harish Bijoor Consults

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onto their own products, and showcase such qualities as part of their brand ethos, Anand seems an ideal fit. In Bijoor’s opinion, the chess champion would work well for financial products for similar reasons.

For Jagdeep Kapoor, Chairman and Managing Director, Samsika Marketing Consultant, apart from his individual achievements and intellectual capacity, Anand also has a calm, collective and cool persona, and would be apt for brands who want to

While brands like NIIT, AMD India and Parle-G have leveraged Anand’s intelligence quotient, most other brands are yet to explore his brand attributes let their performance speak for itself. “It all depends on how you position your brand and Viswanathan Anand,” he says.

Besides NIIT, which, according to Kapoor, has used him for a relevant knowledge management industry, there are several other product categories and industries that would blend in perfectly with Anand’s traits. He cites a few categories like indoor sports and those into strategising and intellectual achievements.

Mind champion Out of the numbered few brands in his kitty, one brand association that has remained on top of mind recall is his 13 year

old partenrship with NIIT. Explaining the synergy between the two, Prateek Chatterjee, Associate Vice President & Head, Corporate Communications, NIIT says, “Just as chess helps to develop the young mind and enhance lateral thinking skills; NIIT has also been shaping minds by bringing people and computers together.”

Among the various marketing campaigns with the chess master, the prominent ones include an NIIT mind champion’s academy, with the objective of promoting chess among school students.

Its also focuses on on-ground activities like mentoring, and lectures by Anand. Its lat-

Pitch | July 2012

est campaign ‘Turning Point’ will also see similar interactive activities by Anand.

Most experts agree that NIIT has benefited tremendously from Anand’s hard appeal which goes well with the brand’s intended positioning. According to Dr Prashant Mishra, Associate Professor IIM Calcutta, besides NIIT, AMD’s association with Anand is also a correct fit since AMD talks of performance, stability, and technical intelligence; traits that perfectly match Anand’s personality.

Anand hasn’t yet showcased his own success story in front of the world and his true potential as a celebrity will get unlocked only once he opens up

The missing piece If the existing brands have struck the right chord, then why doesn’t Anand have the same magnetic appeal as other celebrity sport endorsers when it comes to brand endorsements? The underlying factor behind any brand association is that the characteristics of the celebrity, in this case the sportsperson and the game he is associated with, should be in alignment with the brand, its intended positioning and its target audience. In Mishra’s words, brands do not just pay for the celebrity sportsman, they pay for the combined effect of the person, the game that he plays, and the hysteria it generates.

Perhaps it is on this front that an elite game like chess loses out to mass sports like cricket and football. According to Bijoor, it is the same reason because of

which advertisers get attracted towards players of popular sports, even though they might not be of the same calibre as that of Anand. “It is the game that poses a problem. Chess is a niche game and not a crowd puller,” he adds.

Bijoor’s comment taps the intrinsic problem behind advertisers not queuing up to sign on Anand. Chess, with its exclusive appeal is not a mass puller.

Mishra echoes a similar opinion and says that the limiting factor is not Viswanathan Anand or his personality traits but the nature and perceived image of the game he plays. “It would be unfair to attribute the less number of endorsements to Anand’s personality. The personality of the sportsman comes in much later, it is the game that is of prime importance,” he adds.

For Mishra, it is all a game of numbers and calculation and advertisers’ prime motive behind any celebrity association is to grab eyeballs and convert those eyeballs into sales. For such brands then, which leverage celebrities’ popularity to create a mass connect, cricket and other mass

“Apart from his intellectual capacity, Anand also has a calm, collective and cool persona”

“Just as chess helps develop young minds, NIIT has also been shaping minds”

Jagdeep Kapoor Chairman and Managing Director, Samsika Marketing Consultant

Pitch | July 2012

Prateek Chatterjee Associate VP & Head, Corporate Communications, NIIT

sports would definitely score over chess.

NIIT’s Chatterjee, however, disagrees. He says, “We are using Anand not just as a brand ambassador, but because of the underlying synergy and brand fit.”

The untold story However, keeping aside the limitations of the game, has the ‘hard appeal’ of Viswanathan Anand and his few brand associations cast him into a stereotype?

Perhaps, his mass appeal can extend to a broader consumer base if Anand shares a lighter side of his personality, than his usual suave and mature self.

Vidyadhar Wabgaonkar, Sr VP Strategic Planning at Draft FCB Ulka cites the example of cricketer, Mahendra Singh Dhoni.

According to him, it is Dhoni’s personal story; his rise from a small, backward town existence to pinnacle that has inspired many a small town youth, and made a great theme for many brands to ride on.

Anand, he feels, hasn’t yet showcased his own success story in front of the world and his true potential as a celebrity will get unlocked only once he opens out many layers of history and personality.

“I’m sure he has his own story of triumph over mammoth odds before he could plant his flag at the summit, or challenges of staying there for long enough,” he says.

“He can go for a makeover and share with us a lighter side of his personality or can pick-up a cause such as ‘schooling for poor children’ or a ‘computer for everyone’ and provide us with one more reason to adore him.”

So while this relative lack of hysteria for Anand as far as advertisers go can be primarily attributed to their reluctance to look beyond cricket and other popular sports, one shouldn’t forget that there is also the possibility of the man himself being wary of too many brand associations..  -arshiya@pitchonnet.com

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INTERVIEW LEN CURRAN

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en Curran, Vice President, Sales & Marketing, Renault India came to India in August 2010, when the company decided to go solo after the end of the Mahindra & Mahindra joint venture.

Curran has worked all his life in the auto sector, working with companies like Ford, Rover group, Fiat and now he’s been for more than 20 years with Renault. His primary job in India was to build a team of local experts, define and execute the brand strategy for Renault in India and build a dealer network. The company initially had shied from making any public or press statements. In an exclusive interview with Dhaleta Surender Kumar of Pitch, Curran tells that the time has come for the company to talk. Excerpts: You have been with Renault for about 20 years now. How has the experience helped you as a marketer in India?

Because I have an experience working both with dealers and manufacturers, which is quite unique, I know both. The success and failure of a manufacturer is closely linked to the performance of the dealers. So knowing the dealers, knowing

good understanding of the market and importance of a dealership network and after sales support, which is probably more of a consideration in India than any other country. The other point that came to the fore was that Indians, especially the Indian youth, won’t accept second best. They won’t accept reruns of models that have been launched earlier in other countries. They want up-to-date models that are simultaneously launched in India.

Does it help, you being an expat in the marketing space in India?

Honestly, I don’t think it helps. But the advantage is that you can challenge the norms. Also, it is important when you come from another country is to be humble to accept what you are told, listen and learn from the local experience. But that doesn’t mean that you cannot challenge.

There are many companies who do not have expats in the country and they are doing very well.

Does being an expat become a barrier in terms of local language while dealing with dealers?

India we have a representation plan for dealership, which is based on product by product. For example, in the case of Duster (the newly launched SUV from the Renault stable), we know that it will sell in an area where Koleos won’t sell. So we don’t need to have a dealership in the very beginning.

How’s the Indian automobile market different from the global markets from a consumer perspective?

There’s not much of a difference in selection criteria. But Indians are more consultative and they take a lot of time to make a purchase decision. They will take advice from family and friends, read about the product on blogs, and know more from magazines. This level of interaction in making a car purchase decision is unique to India. I think the reason is that car is such an important purchase decision in the life of a typical Indian. It is a big investment for them and they want to take the right decisions. More than a financial investment, it is an emotional investment.

And they are looking for an assurance through this interaction.

“I attend about 40% of customer issues myself” how to motivate them and supporting them to sell the product is coming handy to build a dealership network in India.

What was the home-work you did before coming to India?

That is quite interesting. Before I came to India, I read a number of Indian blogs on the auto market. I registered on these blogs and forums not as an executive from Renault but created a pseudo personality and passed around myself as a student who was coming on a project to India and asked a lot of questions like what are the motivations for customers to buy a car in India. So that gave me a

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No. When you are speaking to the dealers and you understand the dealers very well, dealers speak the same language. It does not matter which country are you from – European or Indian. Having said that, it is necessary to have a local head of sales, as it gives you an assurance to your network.

How well do you personally understand the Indian geography?

Definitely not very well. But we have a good team who understands very well.

All our managers are Indians. We are only two expats in a team of about 70 people.

In terms of geographical coverage of

The UK car market is considered to be a sophisticated market, and even more than the United States; how do you compare the competition in UK vis-avis India?

UK is a very competitive market and more so than India, however, not from the consumer response perspective. UK and Europe in general, is suffering from the consequences of over-supply. There are more cars than there are customers.

So manufacturers have to work very hard to get that customer. But from a customer’s point of view, the Indian market is more competitive as the customer here is more demanding.

Pitch | July 2012

Post break-up with Mahindra & Mahindra and Renault’s sole entry in India, the company’s taken its time to speak to the press. You didn’t seem to be confident in the beginning?

Actions speak louder than words. We could have spoken a lot about our plans.

But we said that we will launch five cars in 18 months and in July 2012 we will launch Duster, and we have launched all cars before our deadlines. Most manufacturers end up extending their deadlines.

We realised that there is a time to talk and there is a time not-to-talk. And now is the time to talk and share when we are actually delivering. We are going very quickly in India. Over 500 people have applied for franchisee in India. We know there’s a positive wave about the brand. There wasn’t a question of lack of confidence, but just that it was not the right time to talk.

Your marketing strategy was put into phases. What are these phases?

The first phase of our marketing strategy was to build a premium positioning in the market. And we did that with the launch of Fluence and Koleos. Both these cars are

The first phase of our marketing strategy was to build a premium positioning in the market. And we did that with the launch of Fluence and Koleos Duster this month. We are very confident about the success of Duster in India and that will take us through the end of 2013.

We have one more car to launch by the end of this year, and we will have five cars as per promise and that also would be on time. By the end of this year, Renault would have the youngest product range in India. In 2013, we will consolidate our performance and our network. We are in the Phase 1 of dealer network expansion.

We are aiming to have over 100 dealers by the end of this year. We are covering 93 percent of the market in terms of our TG for the products available.

territory, it’s not the same customer who is buying an Alto in the Rs 3.5 - 4 lakh territory. So marketing is designed to be targeted. But we are not very selective about

Len Curran | Vice President, Sales & Marketing, Renault India high-end products in the price range of Rs 15 lakh and Rs 25 lakh, and considering that we were coming from the Logan, which was in the Rs 5-6 lakh territory, this is a breakthrough for us to be able to find a market for these markets. It was important for us to showcase Renault’s DNA. The next stage was to widen our consumer base and we did that with the launch of Pulse, which is in the Rs 4.25 lakh and Rs 6.5 lakh price range, and still brings the all the key features of Renault’s DNA – design, quality, efficiency and safety.

And in the next phase, give consumers and ourselves a bigger foundation and a bigger platform with the launch of

Pitch | July 2012

When you say that Renault wants to build a premium positioning, aren’t you limiting your reach in terms of target audience?

We are trying to make sure that we are targeting the right customer. Obviously, when we are talking to a Koleos customer, who is in the Rs 24-25 lakh

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INTERVIEW LEN CURRAN our customers. If we take an example of Pulse, we sell it to doctors as well as young aspirational businessmen. We don’t limit ourselves to a customer profile. When we talk about premium positioning, and when you are buying a Renault, you can be sure of we talk about a certain amount of luxury and certain amount of technology in the car. We do not sell budget cars.

We sell value for money cars...

You are not shying from using ‘value for money’ for your cars?

We are very comfortable to say ‘value for money’. It’s one of the points we are strong on. And we share that a lot. But that doesn’t mean that we sell cheap cars.

That is the difference.

Will Duster have a separate dealership?

No. Every dealer can sell all products. But we have separate sales teams so that we can focus on the products.

Why did you choose Chennai as base, when others are moving up North?

The main reason was of convenience.

We wanted to be close to manufacturing base, as there is a certain level of infrastructure here as far as the auto market is concerned. When you are launching five cars in 15 months – no manufacturer has done that, in my entire career I have never done that – there is so much tension behind the scene. So we have to make sure that the marketing team, the manufacturing and the supply chain are in sync. One small wobble can go against you. But we will have to consider moving to New Delhi in future as a majority of our market is in the North.

Would you be looking at some markets more seriously?

All markets are an opportunity. So we are not prioritising any market. For sure, Delhi/ NCR is a big market and it is the hardest market, because the customers are much

Every time, a customer has an issue, the calls come on my phone. I attend about 40 per cent of customer issues myself to make sure that the issues are sorted more evolved there. South is doing very well for us, West is doing fine.

Are you looking at any customisations in your cars for the Indian market?

We looked at a few but decided against them. The cars have the same features.

But in future we might have.

Renault is well-known worldwide for its DNA. However, in India, there’s a thought that German cars are more superior. Renault, having a French legacy, how do you overcome that barrier?

That does not happen overnight. You have to keep going with the message.

We are obsessive about our quality before our products go to our customers. And our customers will tell you that they are delighted with the product quality. But that does not mean that they don’t have issues. Every time, a customer has an issue they come on my phone. I attend about 40 per cent of customer issues myself to make sure that the issues are sorted. There are not many, so probably I can personally do right now. The reason is that these customers will tell others about the quality of service and cars. There is a perception that German cars have better quality but that has been built over years and years and years. We are also creating a customer testimonial board, which though is a slow process, but prospective customers can read that.

There is a perception that foreign cars are high on cost as far as after sales management is concerned. What do you have to say on that?

We are trying to work on that. We

Bulk of our spends would go in TV and press.

TV is important for the launch brand building.

Press is important for selling cars 70

create a basket of parts in India and the basket of all car manufacturers in India and a basket of all key parts the customer is likely to use in any frequency. We take an average value of the cost of these parts for example Tata, Mahindra, Maruti and Hyundai and try and keep the price of our parts as compared to the market.

So even if we have to take a loss on the part, we will take it, rather than price them above the market average. This is an important hygiene factor for us as we realise that many European brands in India have a reputation for having high priced spare parts.

Tell us something about your digital plans?

We think that digital opportunity is India is huge. For Duster (which was launched on July 4, this year), we have an elaborate digital plan. And one of them is integrating it with TV. We had tied up with Tata Sky, where on their menu bar, it gave messages like “7 days to go, 6, days to go and so on....” There are other innovations on the web like on some pages some keywords in an article. Duster is being positioned as ‘big, beautiful and efficient’.

In some articles, say for example a news item on the web, if these words appear, these words are highlighted. When you scroll over the word ‘big’, the picture of Duster comes up with the message like the Duster is bigger.

How do your spends bifurcate in the media mix?

Bulk of our spends would go in TV and press. TV is important for the launch brand building. Press is important for selling cars. The next area we are focused on is Outdoor. And digital is very important for us in India, and we are spending about 10 per cent of our budgets on digital. n surender@pitchonnet.com

Pitch | July 2012

COLUMN

PR is like a spiritual guide Of all the communication tools, PR comes closest to taking on the role of a mind-liberator

I

N. Chandramouli

CEO, Comniscient Group n.c.moulee@gmail.com @ncmoulee

f language is the liberator of human beings, the Communication function is the liberator of an organisation. It frees businesses from the constraints of time and space and the incarceration of their own mindsets.

Of the various communication tools an organisation uses, Public Relations is the one that comes closest to taking on the role of a mind-liberator, almost like a spiritual guide. PR is a versatile communication tool which serves the organisation by serving the needs of the community and society. It is the only such tool that was created for the sake of the public, in response to their needs, facilitating “public understanding and acceptance”.

One definition of Public Relations has the following words: “Public Relations helps our complex, pluralistic society to reach decisions and function more effectively by contributing to mutual understanding among groups and institutions. It serves to bring private and public policies into harmony.”

Sounds more like a messiah talking about a faith rather than a profession. But that is exactly what PR achieves. Public Relations not only communicates, but guides on how to communicate, preparing the organisation into a lifestyle that would be no less than spiritual. Public Relations thus brings the organisation and society into harmony.

It would be incorrect to term Public Relations as a tool of communication, since its role would then be relegated to that of an inanimate ‘device’, acting only under the instruction, effort and direction of the communicators. Public Relations, however, gives direction to organisations and helps forge their larger purpose, becoming the very lifeline of business, whose importance cannot be overemphasized.

Once this approach is holistic, one which will be efficient, effective and sustainable, with minimal undesirable impact on its environment it gives the best results. Efficient communication implies that the communication should reach out to audiences and have the desired impact, using the least resources, time, effort and energy.

Kaplan and Norton, in their book Strategy Maps, showed that 75 per cent of the market value of any organisation was generated from its intangible assets. However, we are used to metering the performance of organisations by measureable parameters like turnover, profits, number of employees, growth rate, and innumerable such factors. We succumb to this fallacy because we live in a culture of measurement, thinking, if you can measure it, it matters. Public Relations remains among the few communication formats that solely focuses on

It would be incorrect to term PR as a tool of communication, since its role would then be relegated to that of an inanimate ‘device’ acting only under the instruction of the communicators Pitch | July 2012

this essential intangible, providing value much beyond the measureable.

An organisation that starts its Public Relations journey becomes subject to public scrutiny and is answerable to the expectations of the (unwanted and wanted) public. Using PR necessitates that organisations become more introspective and maintain high moral and governance standards giving them a tactile power of the masses. If used well, not only does the Brand get etched into the public minds, but it also has the ability to turn mere ‘carriers’ into ‘idea transmitters’. Public Relations can convert mere believers into self-powered evangelists.

PR is the only tool of communication that can transmit such deep belief in the audience, since it transforms at a subliminal and life-changing level. Public Relations virtually sets a self-fulfilling prophesy in motion - that which you speak, you become. The use of this tool automatically promotes positive traits in any organisation, guided by public expectations and media scrutiny.

Public Relations is central to Communication. For any organisation, PR is most beneficial when it becomes a way of life of an organisation rather than just as another tool of communication.

(Some parts of this article have been extracted from the author’s forthcoming book, Decoding Communication, published by TRA Publishing). 

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

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INTERVIEW ROHIT DADWAL the highest of developing countries, and is higher than both China and the US. With its high speed and wide reach, mobile is naturally of great interest to marketers in India, who are already working on different ways to make the most of it. The growth potential of mobile in India is limited only by the inventiveness of entrepreneurs, and the willingness of the Indian mobile user to take up new mobile-based services.

In terms of B2B and B2C mobile marketing, what are the key trends in India? How can marketers leverage from these emerging trends?

Mobile marketing has some special characteristics. At point of contact, it can be very personal, directed almost at the individual user, and in combination with technology such as augmented reality and location-based services can be targeted very effectively. Additionally, mobile integrates very well with other media, often acting as the ‘next step’ that consumers can take to find out more about a product or service. As with all

Managing Director,

Rohit Dadwal | Mobile Marketing Association, APAC

F

rom SMS to augmented reality based content; and from basic voice to smartphones, mobile media marketing is opening up great opportunities for internet-based businesses.

Marketers are lapping up this opportunity to create greater consumer engagement.

In conversation with Ruchika Kumar of Pitch, Rohit Dadwal, Managing Director, Mobile Marketing Association Asia Pacific (APAC), talks about the media’s potential and challenges in the Indian market. With over 17 years of experience in the digital and mobile spheres, a mobile marketing evangelist, Dadwal is also an active participant of the mBillionth Awards, a platform which felicitates innovation in

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mobile marketing and technology across South Asia. Excerpts from the interview...

How is mobile marketing as an industry evolving in India? What is the growth potential of this media in the market?

According to the latest TRAI telecommunication subscription figures, as of May 2012, there were 929.37 million mobile subscriptions in India. That means that mobile is rapidly evolving to become the best way to reach the largest number of people in India.

A report by the World Bank has more details. Mobile phone networks cover 83 per cent of Indians, and the average mobile data speed in India is amongst

media, mobile marketing will be the most valuable when it is the best fit for the job at hand, and when it is a valuable addition to an existing campaign, whether that campaign is B2B or B2C. How is the medium fast gaining importance in sectors like healthcare, hospitality, finance and education?

Please explain with examples.

The rapid evolution of mobile phones and mobile tablets means that more and more powerful computing power is being put into consumers’ hands. Mobile devices are so personal that they are always in close proximity to their users.

This is why mobile is seen as having

Pitch | July 2012

great potential for the fields that you mention above. Already, there are pilot programmes all over the world: mobile commerce in Korea and mobile banking in Africa, for example, and we will see the best of India’s best at this year’s mBillionth Awards.

In India, the mass consumer still use s mobile phones as a talking device; what do you think are the challenges for marketers to communicate their ideas with this segment of population?

Mobile marketing’s great strength is its flexibility. It is possible to put together a very Flash rich media campaign with sound and video, with web-based and social media components, if your audience is likely to use smartphones and has access to mobile broadband. At the same time, SMS campaigns have a very wide reach, since most users, regardless of device, can receive text messages.

Other options include interactive voice response (IVR) campaigns that cater to consumers who prefer to talk or to listen.

Marketers merely have to choose the option that matches needs, budget and

Smartphones do not push mobile marketing, because effective campaigns are not based on technology, but on how well they reach out to consumers cal products, may have to overcome transportation and other infrastructure challenges before they can be extended to rural customers. Having said that, the rural sector is growing, and that is likely to encourage more services to cater to that segment.

How are smartphones pushing mobile marketing further?

The more sophisticated the device, the more that can be done with it. Smartphones let marketers offer branded apps, for example, that cannot be run on feature phones. This does not necessarily push mobile marketing further, because effective campaigns are not based on the technology behind them, but on how well they reach out to consumers. Smartphones offer marketers more options, but that is no guarantee of a

before consumers are sent marketing material.

Today’s marketer is yet to be convinced of the potential of this media. How do you think mobile can be integrated as a part of the overall communication ecosystem? What do you reckon?

On the contrary, many brands and agencies are already utilising mobile as an integral part of their marketing campaigns, particularly since mobile works very well as a connector between different media. For example, QR codes can be embedded in print ads, which mobile users can scan to take them to interactive video, websites and other sources of information. Mobile continues to grow, at a pace unmatched by any media or technology before it, and marketers are rapidly coming to

“Smartphones alone do not guarantee effective campaigns” desired audience.

How can mobile marketing help in the growth of rural markets and consumerism in India? Please elaborate.

With 332.38 million rural subscribers (as of May 2012, according to TRAI), the rural market still represents a minority of Indian mobile subscribers, although it is the segment that is growing at the fastest rate. Consumerism and growth in rural markets is not likely to be driven solely by mobile marketing, because there are far too many other economic factors at play. For example, some mobile services, particularly those dealing with physi-

Pitch | July 2012

better, more effective or more appropriate campaign.

In India while DND is in force, marketers are using the services of ‘End of call Notification’ to reach out to subscribers. What are other ways to bypass DND, without breaking the law?

We do not advocate any efforts to circumvent Do Not Disturb provisions, which were put in place to protect the privacy of citizens. Mobile marketing works best when consumers themselves have some say in the process and our code of conduct specifically requires that consent must be obtained

understand its effectiveness.

What is the road ahead?

Mobile penetration in India still lags behind that of other countries, so there is still potential for growth. How far the mobile marketing industry grows and how mobile users take to mobile marketing efforts still remains to be seen. As consumers themselves become more mobile, more tech-savvy and more digitally-enabled, they will dictate how they want to use their devices, and the changing media landscape is evidence of that happening already. n ruchika@pitchonnet.com

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SOUND MARKETING PUBLIC ANNOUNCEMENTS

‘Sound’ sense Advertising through public announcement systems has come as a boon to small retailers. How?

By Ruchika Kumar

C

onsumers trust a brand if it advertises.” These are the golden words of an ambitious bridal saree retailer Prashant Mundhanda in Amravati district of Maharashtra, whose business has been doing well for the past two years since he relayed ad jingles for his brand Mangal Vastralaya at a bus stop in the district.

Similarly, Parag Nalawade’s samosas have found a branded stamp; he is the owner of a small eatery and plans to make it big in the foods industry.

The push is being given by the new age marketing tool of audio advertising (Public Announcements) that targets transit audience waiting at bus terminals.

Tuning into trends Thus, the PA system is fast emerging as a sound tool of marketing for smaller retailers and Vritti i-Media, the Audio Network agency brings to these retailers an affordable and effective audio advertising model to engage the right TG, particularly in the non-metro areas. For the record, the agency has sole authority given by the Maharashtra State Road Transport Service (MSRTC) across 80 plus locations to relay ads.

“Small businesses are building a vision of becoming brands. This medium, if the SME strategises well can help them achieve short term and long term business objectives,” explains Veerendra Jamdade, CEO & Director Technical, Vritti iMedia.

100 per cent listenership Jamdade spells out the reason for the success of the new age marketing tool, which has also been used by big players like Mercedes Benz, MakeMyTrip,

74

Maruti and Chevrolet, particularly those that are trying to target small towns and rural markets. He says that the medium guarantees listening. These places have a captive audience and a floating population, which changes every 20-30 minutes and one can communicate to one’s TG in the local dialect or language. “Rest of the small players and even the corporates in Mumbai and Delhi have to understand and appreciate these salient points of this medium,” he adds.

Thus, the agency has created campaigns for bigger players as mentioned above, where the format is in the form of audio visuals, strategically relayed at food malls, where Volvo and MSRTC buses stop midway for refreshments. Jamdade adds, “We are looking at all transit places where the vehicle stops for some time so that there is an opportunity to connect and engage.”

For marketers, it provides a cost effec-

“The medium has a captive audience and a floating population, which changes every 20-30 minutes” Veerendra Jamdade CEO, Vritti i-Media

tive system as the investments can be anywhere between Rs 5,000 to Rs 15,000 per month. However, Mundhanda, the saree merchant, feels that it is more cost effective for long term contracts rather than monthly as there are discounts offered on bulk orders. Thus, these small marketers are keener on long term investments and build longer relationship with the consumers and the agency.

Emerging professionals However, there is a challenge for the agency while dealing with small retailers. “When it comes to working with them, the problem is they don’t trust the new platform for advertising and marketing,” Jamdade says. But on a positive note, they believe in the strength of this platform only when it comes to them through word of mouth publicity.

Hence, most of these players have either heard the jingles themselves or through friends who discuss how intriguing the concept could be. Moreover, for Jamdade, the key learning is that the agency has understood that retailers are very brand conscious and want their brands to be known.

However, due to lack of consultancy they don’t get to know about the availability of any medium for communication. “In simple words, conventionally, they don’t have suitable opportunity for advertising/marketing, except TV and newspaper. Apart from this, we have learned that their aspirations are very high. They expect return on the investment they make,” Jamdade shares. n -ruchika@pitchonnet.com

Pitch | July 2012

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5

INTERVIEW SUDEEP NARAYAN

T

he small but evolving luxury car market in India is buzzing with activity. While German brands for long have been dominating the market.

Swedish player, Volvo, too is gearing up to make its impact felt in India. With a plan to double sales of Volvo cars each year and increased investments in marketing and communication initiatives, Sudeep Narayan, Director Marketing and PR, Volvo India, in an exclusive interview with Abhinav Mohapatra of Pitch, shares how crucial the Indian market for luxury cars has become. Excerpts...

What are your expectations from the Indian market?

If you look at the luxury car market in developed countries, it is about eight to 10 per cent. Among BRIC countries, Russia sells five per cent. In India, while overall more than 20 lakh cars were sold last year, only 23,000 luxury cars were sold. The numbers are going to increase as the entry level models in the luxury segment have become more affordable. Earlier, the entry level started at Rs 30 lakh. It has come down to Rs 25 lakh.

The bigger car with better technology and design build the image of the brand and it’s

and the XC60 caters to the entry segment.

How does Volvo position itself in India?

One is a geographical difference that we have. We are Scandinavian, not like the other competitors in the market who are mostly German. Later, there could be influx of Japanese luxury brands and American also. The next thing that we look at is our Scandinavian culture. We are strong, subtle and safe, that is what trickles down to our cars too. We Scandinavians see safety as the biggest luxury in life. Wearing a seatbelt at 50 Kmph can save a life. That

We Scandinavians see safety as the biggest luxury in life. Wearing a seatbelt at 50 Kmph can save a life. That is where we come from and that is how we differentiate

How has the luxury car segment evolved in India?

India has a very rich luxurious heritage because of its maharajas. There is this aspiration among people to live the maharaja kind of a life. India now has the third largest number of dollar millionaires in Asia, after Singapore and China. People now want to lap into brands and labels.

There is a new phenomenon, because of this accessibility, which is the ‘urge to splurge’; people live off the future incomes

the smaller car that sells.

India needs to grow multifold in this aspect, if it is expecting to sell 15,000 luxury cars by 2020. We sold 326 cars last year which was not much. This year, we are expecting to sell 800 cars and next year

is where we come from and that is how we differentiate. We consult orthopedic surgeons for our seats. There is a smell expert team that tests out leather seats and the nickel. Therefore, our cars are nickel free. The paint that we use is water

rather than the present ones.

When I started working, my destination brand was a mass car brand. Now with the influx of luxury brands, the ambition of new employees has risen. A Rs 8-10 lakh car gives a nice feel to what one is doing with one’s career. With the car prices of the luxury segment now in crores, the ambition also is going higher.

we are planning to double that number.

Therefore, we have a concentrated growth oriented plan for India. We plan to do 20,000 cars by 2020 when the market is of 1,50,000 luxury cars.

We mostly sell the S60 and XC60. The S80 and the XC90 are for those who have a different mindset within the luxury segment.

The S80 caters to the executive segment

base so that the person spraying the paint is not harmed. If you see the styling of our cars, it is minimal but at the same time it is very premium.

“Volvo brings Scandinavian culture to its cars”

India has a very rich luxurious heritage because of its maharajas. There is this aspiration among people to live the maharaja kind of a life 76

How do you compare with entry level luxury brands from top boutique brands?

Pricing of the car depends on many factors.

Our competition is all production cars. The boutique cars are all handmade cars. Even the metal is twisted by human beings and not in a machine. The offering that the boutique gives is the best leather, the best wood, the best carpet and the best engine.

Whereas, we use economic engines. Consumption wise, boutique brands are on the rise. Tey are much more in demand than

Pitch | July 2012

before. When people go in for brands like Volvo, BMW, Audi and Mercedes, they look for value and luxury both.

Which is your strongest market in India?

We are selling maximum models in Hyderabad. We are very close to our competitors in Hyderabad, where we sell 18-20 cars in a month.

How do you engage with your target audience?

Our first ethos is to do something different, unique and luxurious. We involve a lot of our TG through golf, as it is more engaging for us. We don’t do any mainline media blitz screen. It does not help us in any way. We cannot target one per cent of 0.11 percent, which is the number of luxury car buyers in the country. We try to geo-target and sharp target our audience. We target niche magazines and ask them for their database. This database is further filtered to find out CEOs, CFOs, SMEs, doctors and lawyers who are top in their field. And there’s a communication within communication to reach out to this audience.

The equity of a car brand is more in a lower price point than a higher price point according to me.

Luxury need not come with a hefty price tag creases. When you are running a steeple chase you start slow. We are gaining momentum now.

more in a lower price point than a higher price point according to me. Luxury need not come with a hefty price tag.

What is the pricing strategy of Volvo in India?

We pay more import taxes, but our pricing is similar to the pricing that we have globally. Our pricing is low compared to other vehicles in the segment, because we want to give value to the customer.

The equity of a car brand is

What are Volvo’s challenges?

The challenges are many. We are still not in the consideration for the luxury car segment like other competitors. But we are getting there slowly. We are not a brand that is built on awareness by spending Rs 50 crore. We are those who built it on the stilts of values. Our brand ambassadors are our happy customers.

All our competitors set up importer-ships before official entry in the market, selling small numbers and yet not talking to the press, therefore building a base. When the brand is established they start doing blitz screen advertising and full blown sales.

It’s still testing times with us.  -abhinav@pitchonnet.com

Sudeep Narayan | Director, Marketing and PR, Volvo India

We started outdoor lately, as we realised that we were missing out on the recall of the brand. In Delhi and Mumbai, Volvo has only two spots.

Instead of putting in money and placing 20 hoardings which would be irrelevant for our TG, we take up strategic locations only. We do digital space also, as we target some websites, which are subscription based and have an annual subscription of around Rs 2 lakh.

What is your advertising and media budget for this year?

We have seven per cent of the total segment, that is Rs 15 crore. But these budgets will double as the volume in-

Pitch | July 2012

77

SURVEY DUAL SIMS

SIMmering duality

According to a research, there’s more demand for multi-SIM mobile handsets. Why?

By Abhinav Mohapatra

W

hile the Indian telecom industry might be witnessing a rise in the number of Smartphones being launched in the market, it is still the dual SIM handsets that rule the roost.

With Indian mobile phone sales crossing the five crore mark in Jan-Mar 2012, multi-SIM handsets account for twothirds of total sales in the overall Indian mobile handset market. This is indeed a big number where established players like Nokia and Samsung have emerged as clear leaders.

Top three vendors, as per Cyber Media Research in multi-SIM category, for the January-March 2012 period, in their order of market share are Nokia, Karbonn, Micromax. The leader (Nokia) in this category enjoys twice the market share of its nearest competitor.

According to the latest Cyber Media Report, the overall Indian mobile handset market recorded sales of 183 million units in CY 2011-12 out of which multiSIM handset shipments accounted for 57 per cent, representing a year-on-year increase of 61 per cent.

Naveen Mishra, Senior Manager, Telecoms Practice, Cyber Media Research says, “Of late, the smaller Indian brands have put forth a large range of dual SIM instruments, but Nokia and Samsung also have a large market share and have a large portfolio. There is a limited market for high end dual SIM phones in the country.

Mostly these phones are used to differentiate between personal and professional.

Niche users like to carry two phones in-

stead of a single dual SIM handset.”

Cheaper by the dozen Thus, the dual SIM segment caters mostly to the consumers at the bottom of the pyramid. These users cannot afford two different phones and are tempted by the offerings of the service providers. Therefore, they buy dual SIM handsets that can support two SIMs and are the more economical option.

According to Kaustuv Chatterjee, Head, Product Marketing, Nokia India, there are

The dual SIM segment caters mostly to the consumers at the bottom of the pyramid. These users cannot afford two different phones 78

three basic reasons for the dual SIM being the dominant segment in the market. “Firstly, the instruments are used to rationalise the cost as a lot of consumers use lowest plans. Secondly, from the mid to the higher brand segment, the management of two separate telephonic identities as personal and professional, and thirdly, since consumers are roaming, and facing network issues they can effortlessly switch between SIMs,” he says.

But that doesn’t mean that consumers are not quality or brand conscious.

They prefer a brand that has greater market equity and value. Mishra says, “Brands like Micromax and Lava are usually ‘add-on’ instruments. They are second or third phones used by high end users who operate on more than two networks. If they are getting similar features from mainstream brands such as Nokia and Samsung they opt for that.”

This is precisely why Chinese handsets that started with the low end dual SIM handsets pitted against companies like Micromax and Lava, could not take off in the market, even though they are technologically advanced. The fact remains that more evolved customers do not find the usage of such phones as estimable.

As a matter of fact, Vipul Mehrotra, Director and Head Smart Devices, Nokia India, had earlier told Pitch, “When we went into the dual SIM market, we brought innovations like easy swap, innovation at the simplest level to make these dual SIM phones much more user friendly so that everyone could use the product. Perhaps, the easy swap is the reason for Nokia’s leadership in that segment.”

Nokia’s Chatterjee explains the reason for the brand’s No 1 position. He says that Nokia caters to all segments. For

Pitch | July 2012

Handset Type & Brand Share Others 17%

Single SIM Handset 39%

Dual SIM Handset 61%

Source: Nielsen

instance, at the high end, Nokia has the C203 touch and type slider and at the lower end Nokia has the 101 with basic features.

“The innovativeness is what matters in this field; we have dual SIM phones that give good music playback quality sound, plus loudness,” adds Chatterjee.

Price wise In terms of pricing, the top end Nokia phones in the dual SIM category are priced around Rs 5,000 and the market is consistent for the same. There is no option of dual SIM above the Rs 15,000 range as the people want technological advancements, they want the latest stuff that has a brand value and is up market. The dual SIM handsets are considered as an old technology, usually bought by those who are utility conscious. However, when one spends above a certain limit, one looks for iconic designs, latest cutting edge technology and style.

“Also it has been seen that the user segment at the bottom of the pyramid are the ones using the dual SIM handsets and the niche does not want to be associated with that. Price is a major factor but it varies from person to person. Someone who can afford a phone worth Rs 30,000 will prefer to have several other handsets to manage different networks and those who can afford one but want to utilise more than one network will definitely go in for dual SIM handsets. To an extent dual SIMs are taken as an aspiration based category,” Kaustuv appends.

Pitch | July 2012

Nokia 30%

Lava 2% Max 3% Spice 4% Karbonn 4% Chinese brands 5%

Samsung Micromax 12% 16%

G’five 7% 5%

Share of brands among Dual SIM phone

Cost effectiveness According to Nielsen data, a typical user has two SIM cards, but from different operators. What is interesting here is that users prefer to keep both SIM cards as prepaid to have a better control on costs as well as to capitalise on monthly deals offered by operators. A key observation by Nielsen is that for most multi-SIM card users; there hasn’t been a significant increase in their monthly mobile expense despite maintaining two separate connections.

For every two out of five multi-SIM users, expenses have remained consistent.

Only 12 per cent users have reported a substantial rise in costs. A study by Nielsen found that overall, 13 per cent of unique active mobile subscribers use multiple SIM cards. The reach peaks in towns with a population of five to ten lakh, where 21 per cent of the populace

“Brands like Micromax and Lava are usually ‘add-on’ instruments. They are at times second or third phones” Naveen Mishra Senior Manager, Telecoms Practice, Cyber Media Research

uses multi-SIMs but in a town class with 40 lakh plus population is just 11 per cent.

It all boils down to youth “Having 14 telecom players in the country, everyone wants the best data plan etc. This is the best opportunity for the TG to go and explore what are their offerings at the cheapest cost, for data and for calls, while retaining the old number.

Where you see Airtel giving 1GB usage at Rs 99 and Vodafone giving 1.5GB at Rs 99, it is best to try out and see for yourself. The youth that constitutes 55 per cent of the total population under the age bracket of 35, likes to stay connected to Facebook, Twitter etc, they like to experiment with the data packs as they are a value conscious lot therefore they look at the most economical option,” says the Micromax spokesperson.

Micromax also says that the youth has to manage within their pocket money and they want to get value for money. Thus, 95 percent of its phones are dual SIM enabled, be it a high end Smartphone, a mid range or the basic entry level model.

“Today the total industry approximately pegged at Rs 55,000 crore and 60 percent of the devices that are sold are the entry level models. Micromax is known for creating categories, be it QWERTY, dual SIMs or long battery life, we introduced the first sub 5,000 Qwerty devices, and we were the makers of dual SIM phones in India. When we launched the Qwerty dual SIM smartphones having everything for Rs 3,000, aspiring individuals bought it in volumes. The notion of value for money is important so we target the category that looks for utility and not too much of show.” the spokesperson adds.

Presence of multiple carriers in the Indian market ensures growth of this segment. Also, with the evolution of 3G, 4G network, dual SIM has extended its presence in the Smartphone segment.

Today’s youth prefer to be on more than one network because of the contextual role they need to play in the society and the wide option available for them when it comes to mobile network.  -abhinav@pitchonnet.com

79

Jobs from exchange4media.com Markigence Executive – Business Development, New Delhi PHP Developer, New Delhi Content Writer, Delhi Child Rights and You - CRY requires: Call for Internships Consultant – Brand Communications Institutional Partnerships Associate General Manager (Brand) Assistant Manager - Brand Senior Manager, Channel Management (Individual Par Consultant – Telecaller Senior Manager - Resource Generation Sr Manager, Resource Generation for the Chennai/ Delhi/ Mumbai/ Kolkata For details log on to www.exchange4media.com B.D.Khanna Publicity requires: Asst. Business Development Manger Client Servicing Executive Graphic Designer / Visualization for the Delhi For details log on to www.exchange4media.com Franchise Plus requires: Regional Head Ad Sales Manager/ Asst. Sales Manager Ad Sales Executive for the Noida For details log on to www.exchange4media.com Charson Advisory Services Pvt. Ltd.

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Pitch | July 2012

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Exp: 5-10 Location: Kolkata Email: hr@matrixdirect.in Post: Project Manager Company: Finedge India Pvt Ltd Profile: Applicant having experience in FMCG/ Promotions/ BTL activities/ Logistics desired.

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9

COLUMN

Learnings from Twitter’s self-served ads Twitter, by far, is still the most underdeveloped advertising platform. It has offered Promoted Accounts wherein your brand would show in the ‘Who to follow’ section

I

Yashraj Vakil

COO, Red Digital @funkyfuturist

n February 2012, Twitter announced that it had partnered with American Express to give away $1 million in free advertising to small businesses. The first 10,000 eligible businesses that register for the program were to be given $100 in free Twitter advertising and exclusive access to Twitter’s self-served ads module, provided they were following American Express on Twitter, and possessed an American Express credit card issued in America. In March 2012, these 10,000 businesses began receiving access to Twitter’s self-served ads program, and fortunately, my personal Twitter handle was amongst those selected.

In the social media space, Facebook’s advertising platform is by far the most developed and widely used. Facebook can deliver a message to various demographics due to its scale and targeting capabilities, making it extremely effective for B2C marketing. LinkedIn’s advertising program, though expensive, is tremendously effective for B2B companies and brands. Google is the old warhorse and provides a number of options and advantages to advertisers.

Twitter, by far, is still the most underdeveloped advertising platform. It has offered Promoted Accounts wherein, your brand would show in the ‘Who to follow’

section; its Promoted Tweets and Promoted Trends are still under beta. Until recently, Twitter planned to do things differently.

With self-served ads on Twitter, I can now buy Promoted Tweets and Promoted Accounts online without talking to a sales-

2. Two ways to run promotion The self-served ads module for small businesses only offers Promoted Accounts and Promoted Tweets. I would have loved to see Promoted Trends being offered as well. While Promoted Accounts is widely used, Promot-

person. This is a very significant development in the social media space; it has the potential to take Twitter’s $139 million ad revenue in 2011 far higher and create multiple opportunities for agencies such as Red Digital. I began running a few ads with limited spends to experiment with the platform some time back. With this story, I intend to provide a perspective on how Twitter’s ads stack up to competition.

ed Tweets is still in beta even for larger advertisers.

With Promoted Accounts, Twitter displays my handles/account on the top, in the ‘Who to follow’ section, hence targeting users who are most likely to be interested in my account; I only pay for new followers that I gain.

With Promoted Tweets, Twitter highlights and publishes all my Tweets for my followers and those with similar interests to my followers. I can also choose not to promote specific Tweets. Exactly like Google Adwords and Facebook Ads, Tweets that see maximum engagement and gain higher visibility are promoted to a larger extent.

The best part of Twitter Ads is that they show on handheld devices too.

1. Trouble-Free & Effortless Self-Served Twitter ads are simple.

I could target users based on a selected geographical area, worldwide, by country or by a specific US city. It will be interesting to observe its scope when Twitter introduces city targeting in other countries.

With self-served ads on Twitter, I can now buy Promoted Tweets and Promoted Accounts online without talking to a salesperson.

This is a very significant development in the social media space 82

3. Real Time When it comes to Twitter, it’s simply real-time! There is no lag or approval process whatsoever.

Pitch | July 2012

much more comfortable if I were given an option to target my ads based on certain set of keywords or interests. I also don’t know if the Promoted Tweets are being shown to users who have already clicked on my Tweet once. There needs to be an option to choose how many times I want to show my Tweets to an individual user.

No-approval system: While this might be great for responsible advertisers, it can get out of hand and Twitter will need a strong cleanup team if they are to continue with this.

4. You Decide What You Spend The lowest bid you can enter to promote your Tweets and Account is $0.50. However, with optimisation the final price you pay per follow and click can be lower than $0.50 also. You can’t yet run ads in your local currency. You can also decide your daily spend limit individually for Promoted Tweets and Promoted Accounts. You can obviously keep track of how much you are spending for each Promoted Tweet and Account, as well as the total expenditure since the beginning. You can also keep track of how much money each of your Tweets are consuming and stop promoting a particular Tweet if you think it isn’t giving a chance for other Tweets to be displayed.

5. Performance Promoted Tweets: The impressions and clicks start counting as soon you allocate a budget and initiate the promotion. It doesn’t take too much time to exhaust a small budget, maybe just a few minutes.

I was targeting my Tweets only to Indian users. Of nearly 11,0000 impressions, the Tweets I promoted, were clicked 227 times at a click rate of 2.07%, which I think was quite awesome because the click rate settled at this number after peaking close to 10%. The numbers would have been different if I was promoting a product or service.

Promoted Account: I have been promoting my account in India for just over a month at

extremely low daily spends and the lowest possible bid. In one month, I have received 29,000 impressions of my account in the ‘Who to follow‘ section and 112 follows at a follow rate of 0.39%. The follow rate is better than the rate at which I would acquire Facebook fans. I believe the follow rate may be much higher for well-known local or global brands as compared to my personal handle, which no one recognises. This means more bang for the advertisers buck.

6. Keep Your Eyes Open and your Finger on the Turn-Off Button Ads can get uncontrollable even after you have set-up your daily budget. For example, I initiated an ad with a $1 budget, and it immediately displayed to approximately 400 users. Considering my average click rate, I have 8 people clicking on these ads. After the first two clicks, my budget is used up.

But since the ad was already shown to 400 people, the other five clicked as well. That way, I get 5 extra clicks. And in spite of my budget being $1, I am charged around $3.

7. Observations and drawbacks Targeting: The targeting I believe can improve. Unlike Facebook, Linkedin or Google, I can’t see the estimated number of people I am targeting with my ads. I don’t know where my Promoted Tweets are displayed and to what audience is my Promoted Account being shown. The logic that Twitter uses for the same is unclear. I would be

The ads I run can only be run for my own handle.This provides a major constraint for agencies managing multiple brands because they need to monitor each account separately Pitch | July 2012

No campaigns: The self-served ads module doesn’t allow the creation of campaigns. My overall expenditure is shown, but cannot be segregated into key messaging initiatives I undertake.

No advertising account or admin module Unlike Facebook, where I can add admins to my page, I cannot add admins to my Twitter handle. Because of this constraint, the advertising I run can only be run for my own handle and no other. This provides a major constraint for agencies managing multiple brands because they will then need to monitor each account separately.

Social Reach Facebook ads have a beautiful concept called social reach. It measures organic growth as a direct impact of advertising spends. Twitter should introduce a similar concept to measure replies and re-Tweets as a direct impact of running ads on Twitter, and integrate it with the analytics module of the self-served Twitter ads.

The introduction of self-served Twitter ads is a significant step in the social media universe. However, Twitter will need to get everything absolutely spot on from day one. The stakes are high; its success or failure can have a significant impact on Twitter’s revenue and the entire social media ecosystem. For the meantime, expect a lot of comparisons and debates when this is made available, as from the look of it, Twitter seems to have an upper hand already! n

The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

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FAMILY AER

Smell sweet

How is Aer trying to differntiate itself from competition from P&G?

By Arshiya Khullar

I

n a bid to further strengthen its home care portfolio, Godrej Consumer Products has ventured into the highly potential and nascent air care industry with the launch of its air freshener brand ‘Aer’.

Targeted at the SEC A and B households, ‘Aer’ comprises product offerings for both homes and cars. For the car air freshener segment, the company has launched a dashboard perfume and a diffuser, priced at Rs 299 and Rs 225, respectively. In the home care segment, Aer will be available in an aerosol format at a price of Rs 110.

Infusing freshness The air care market in India, at Rs 300 crore is a fast growing household accessories market propelled by the changing preferences of the evolving Indian consumer.

An increased purchasing power of people, and greater emphasis on aesthetics have broadened the scope of air care in India.

However, compared to the $ 7.5 million air care industry globally, the category is still in its infancy in India.

Aer will see stiff competition from a plethora of existing domestic and international brands that have introduced different variants of air fresheners like sprays/ aerosols, electric air fresheners, gels and candles, car fresheners, bathroom fresheners, and domestic room fresheners. These include Reckitt Benckiser’s Air Wick, one of the premiere air freshening brands in the country, Sara Lee Corporation’s Ambi Pur (which was taken over by P&G in 2009), US-based home care player, SC Johnson’s Glade, Renuzit brand by Henkel, Odonil by Dabur, and Premium by JK Helene Curtis. In a rapidly growing and new product category, while there is sufficient room for each player to grow, product differentiation and innovations go a long way in helping a brand score above the rest and establishing brand recall.

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According to Sunil Kataria, Executive Vice President, Marketing & Sales, GCPL, Aer’s USP is its design and fragrances. He feels that much attention hasn’t been paid to the design structure in the FMCG space, and focus remains only on consumer insights and providing functionality.

In terms of product differentiation, the company claims to be the first branded player to offer a product in the dashboard/ cup-holder segment in India.

Moreover, Godrej is not completely alien to the air care market. It is one of the market leaders in the Indonesian air care market with Stella. Even in India, the company was selling Ambi Pur, through a joint venture with Sara Lee, a partnership which ended in 2010, when Sara Lee’s personal care business was acquired by P&G. From a distribution and retail standpoint, besides leveraging traditional and modern retail, car accessories will also form an important distribution channel for the company. Kataria believes car accessories dealers and distributors to be crucial touch

“Aer is the first branded player to offer a product in the dashboard/cup-holder segment in India” Sunil Kataria Executive Vice President, Sales and New Business Development, Godrej Consumer Products Limited (GCPL)

points in creating awareness and driving sales. With a 25 per cent annual growth in car sales in the last two years, Godrej is also looking to tap OEM manufacturers, though maintaining its prime focus on the retail channel.

Targeting 29 metros, the aggressive marketing campaign for Aer will be spread across mass media and the digital platform. While the company did not share its detailed marketing plan, mass media would essentially encompass TV and a bit of radio, with lesser focus on print. While the company’s digital marketing strategy, for which, according to Kataria, roughly 20 per cent of the total marketing spends have been earmarked, would include, among other things, social media campaigns on Facebook and Twitter. The core proposition around all its marketing initiatives would revolve around establishing Aer as a quirky and witty brand. For experiential marketing, GCPL will also be organising sampling drives at various touch points like petrol pumps, modern trade, and car accessory outlets.

While the company is targeting a 20 per cent market share for its air freshener brand in a period of three years, Kataria strongly feels that more than the numbers, it is about creation of the category in India. The company is also looking to add new fragrances and automatic sprays to its product portfolio in the near future. n -arshiya@pitchonnet.com

Pitch | July 2012

LIQUOR MARKETING HEINEKEN

High on music

How is the latest entrant in the premium lager beer market, wooing the Indian youth?

By Arshiya Kullar

A

globally renowned and preferred beer brand for many discerning beer drinkers around the world, Heineken, ever since its India launch September last year, has been pursuing aggressive marketing activation campaigns to replicate its global success here.

The Dutch-born super-premium lager beer was brought to India by United Breweries.

Brewed and bottled in India, Heineken, priced in Delhi at Rs 80 for 330 ml and Rs 150 for 650 ml is looking to cement its position among the highend beer lovers by differentiating itself on account of its taste and quality.

Experiential route It is the brand’s consistent and differentiated marketing campaigns in India, based on its global proposition, “Open Your World” that have been garnering attention. The campaign looks at encouraging aspirational behaviour among adult consumers.

Across the world, Heineken connects with consumers through marketing

activation campaigns based on its global sport, music, and film platforms. The company has chosen music as the main driving force behind its marketing activations in India. In line with this positioning, the latest ongoing marketing initiative is the Heineken Green Room. To be held across Delhi, Mumbai, and Bangalore, Heineken Green Room is a series of exclusive, inviteonly events, which will showcase international dance and music artists. Another musical event called Heineken Tonight is in the pipeline.

Heineken is also the sponsor of UEFA Champions League Football and the Rugby World Cup. The brand also boasts of a 15-year-long partnership with the James Bond film franchise, and has plans of launching a global campaign in September for the upcoming spy movie, Skyfall.

On the related marketing plans for India, Samar Singh Sheikhawat, Senior Vice President (Marketing), United Breweries, says, “We will supplement our musical events with digital, James Bond activations along with increasing visibility and focus on top cities and retail promotions.”

Earlier this year, in February, Heineken launched a Facebook application called ‘The Serenade’, which enables users to send personalised songs to potential partners and invite them on a date and also hosted an 8-hour YouTube event called ‘Serenade Live’ on the same premise.

Through the ‘looking’ glass The aggressive marketing initiatives pursued by Heineken, and for that matter sev-

To be held across Delhi, Mumbai, and Bangalore, Heineken Green Room is a series of exclusive, invite-only events, which will showcase international dance and music artists Pitch | July 2012

eral other beer brands gives a sense of the underlying growth potential in the Indian beer industry. According to a report titled ‘Indian Alcoholic Beverages Market Outlook to 2015’ by AM Mindpower Solutions, a market research company, beer is the third largest market and the second fastest growing market in the Indian alcoholic beverages industry, next only to wine.

To enhance visibility and differentiation in terms of product packaging, Heineken also launched a new bar accessory, called the Heineken Arctic Glass, a double walled glass that chills beer quickly. These glasses are a limited edition product and have been available on promotional stocks at select outlets in select cities across the country.

Sheikhawat agrees with the high degree of correlation between packaging and brand equity and feels that in the final analysis, consumers buy what is outside the bottle, driven by preferences based on the brand image. And goes on to say, that according to them, Heineken has the best packaging and look and feel of any beer brand in the country.

While the company has not shared any numbers to substantiate this claim, and considering it’s only been a few months since the brand came to India, there is still some time before one can gauge the brand’s success in India.

According to Sheikhawat, among the different regions that Heineken has a presence in, Delhi and Calcutta are its best markets.

He attributes this performance to the right consumer profile in Delhi and Calcutta’s openness towards new beer brands.

The brand benefits from the large distribution network of United Breweries and plans to focus on the top 10-12 markets in India. It is eyeing a share of five per cent of the premium mild beer market in India.  -arshiya@pitchonnet.com

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BOOK EXTRACTS

LIQUOR MARKETING CLAUSTHALER

For the love of taste

Unlike in developed markets, where non-alcoholic beer exists as a category, it is virtually non-existent in India. Clausthaler is trying to fight the odds and educate the people. How?

By Ruchika Kumar

G

ermany based Clausthaler Beer that is solely imported and marketed through Dalmia Continental in the Indian market, is all set to grow the nonalcoholic beer category in India, with a slew of marketing and on-ground consumer engagement activities.”The marketing objective is to create awareness, emphasise the different occasions for consumption and to hence grow the category, with a secondary emphasis on brand,” says V N Dalmia, Chairman, Dalmia Continental.

Strong distribution is key to success Amidst the clutter of alcoholic beverages, cola and energy drinks, there is a slow but nevertheless emerging market for nonalcoholic beverages in India. There also exist other brands like Hops, Areta, Martens, Kick & Chill and Rockers and most recently Tuborg Zero, a non-alcoholic malt beverage launched by Carlsberg. The market is mostly import driven so it becomes crucial for international brands in this category to optimise the distributional strength of their channel partners in the country.

“We have 26 depots across the country, as well as 90 sales personnel servicing 190 cities. The strategy is to place it in highend stores and modern trade chains,” adds Dalmia.

Brewing a new story However, the growth of the segment has been sluggish as according to Dalmia, other

Consumers in developed markets are able to associate beer with taste, rather than think of beer simply as a source of alcohol

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brands that are available in the Indian market have made no attempt to educate the consumer or build a brand. Unlike in developed markets like the US and European countries where non-alcoholic beer exists as a category, it is virtually non-existent in India due to low consumer awareness. As a matter of fact, the quantity of non-alcoholic beer imports in 2011 was approximately 250 MT (million tonnes). Of this, Clausthaler was 110 MT, implying a market share of 45 per cent.

Dalmia explains, “In developed markets, most restaurants have one or two non-alcoholic beer brands listed on their menus.

Consumers keep non-alcoholic beer in their homes as a refreshing, healthy beverage option. Consumers are able to associate beer with taste and appreciate the nuances of different beers, rather than think of beer simply as a source of alcohol. Consumers in India are yet to develop a nuanced appreciation of beer.”

Moreover, products in this segment have not had a very high retail presence or recall.

Thus, the company has made deliberate efforts to expand reach of the brand across Mom and Pop stores, kiranas, super stores, high-end stores, modern trade and cash ‘n’ carry chains. The Chairman says that the retail presence would expand greatly if the company were to enter beverage retail, in addition to premium foods retail.

100 per cent BTL To add to the visibility of the German brand, the importer has been indulging in aggressive brand building exercises that include 100 per cent BTL activities. These include paid listing and display fees in modern trade. In addition, the company has offered visi-coolers to high-end stores as well as

Pitch | July 2012

paid display charges for prominent visibility and hired floor-stacks and endcaps in modern trade. It conducted extensive sampling activities at Spencer’s, Big Bazaar, Metro Cash ‘n’ Carry, Hypercity and other chains as well as across marketplaces, RWAs, malls, restaurants and hotels.

For the company, sampling marketing has been the core marketing strategy of the brand. Dalmia adds, “We have also conducted sampling in The Beer Café (now The Pint Room) in Ambience Mall, Vasant Kunj, in Delhi, as well as other bars but find that the response is greater in restaurants without a liquor license than in bars.” The company has also taken advantage of ‘dry days’ by holding special sampling events in restaurants and in corporate sports tournaments. The company also participated in exhibitions and trade fairs, including IITF Delhi in 2011, where Clausthaler received tremendous positive response.

This year, in addition to sampling in stores, the company plans to launch a digital marketing campaign as well as corporate programmes. Probably, these efforts have paid off as the company claims to have had a growth of 75 per cent in 2011 over the previous year.

Is there a market?

But without further arguments, it is also a fact that the market for non-alcoholic beer beverages is small as compared to the beer market in India and the company is trying to fill that gap by promoting the drink as a healthy option vis-à-vis sweetened carbonated colas and tonics. The company claims that the almost beer like flavour is the result of a unique, patented brewing process that was developed over many years of research and experimental trials.

The drink is said to contain twice the energy-rich carbohydrates and 40 per cent less calories than a normal beer. Touted as a healthy option over its alcoholic counterpart, the presence of electrolytes makes it an isotonic drink that also targets athletes.

Some of the other popular energy drinks in the market are Gatorade, Redbull and Cloud 9, among others. However, Clausthaler is positioned differently owing to its beer like taste and look. Even the packaging is on the

Pitch | July 2012

The market for non-alcoholic beer is small as compared to the beer market in India and Clausthaler is trying to fill that gap by promoting the drink as a healthy option lines of a real beer brand creating that lifestyle appeal to the brand.

Bitter pill?

For the record, Clausthaler is positioned as a premium malt beverage that targets both men and women of SEC A+ and A and health conscious consumers of SEC B+, in particular fitness enthusiasts, underage children and people who do not drink for religious or medical reasons. But are there any takers?

Experts say it is the consumer psyche that may play a critical role for the growth of the category. Drinks such as healthy tonic water etc too have failed to create a stir in the consumer’s mind. Hence, it is still not clear if there is any market demand for such a product in the country? One expert feels that it will be a very small and insignificant market looking at the variety of nonalcoholic beverage brands that the market already has to offer. “Why will a non-drinker have a bitter beer experience anyway when there are so many brands like colas and sweetened energy drinks available, I personally would order a sweet tasting mocktail from the bar or restaurant’s menu if I

“Non-alcoholic beer is perceived to compete with energy drinks, but we do not promote it in that category” V N Dalmia Chairman, Dalmia Continental

had to have something to drink,” says an industry source not wanting to be named.

Though there is an overlap with all nonalcoholic beverages like colas, fruit juices and energy drinks, the company’s core objective is to create a new category for non-alcoholic beer and therefore does not pit it against any of the existing categories mentioned.

“Wittingly or unwittingly, non-alcoholic beer is perceived to compete with energy drinks but we do not promote it in that category. Clausthaler is not caffeinated. Its natural competition is all non-alcoholic drinks, including carbonated beverages. However, unlike colas, which contain artificial chemicals, Clausthaler is composed of completely natural ingredients,” Dalmia explains. However, for Clausthaler, the main competitor stands to be global brand Beck’s, another non-alcoholic beer brand.

Drinking to health Akin to that there also exists an overlap of brand perception in the market. There are a number of energy drinks in the Indian market that almost provide similar nutrients.

Plus, non-drinkers still shy away from the term ‘beer’ that may actually deter many to try the product. So, what is the brand’s strategy to stay ahead of competition and change consumer perception?

Dalmia responds, “Unlike energy drinks, Clausthaler contains no caffeine. It is completely natural. The only way it provides energy is its plentiful supply of electrolytes and energy-rich carbohydrates. Moreover, the nutrients provided by Clausthaler are a secondary benefit. Primarily, we promote Clausthaler for its great taste and for the need it fulfills due to the absence of alcohol – the fact that one can drink it with lunch, at work, while driving or when medically advised against drinking. The stigma against the term ‘beer’ can only be tackled by increasing awareness. Also, nowhere on the can is the term ‘beer’ mentioned.” n -ruchika@pitchonnet.com

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LIQUOR MARKETING OFFICER’S CHOICE

Feel good quotient How Officer’s Choice, at No 2 position four years back, has been able to take the top position

By Pallavi Srivastava

T

he war in the alcohol market has been simmering and this time Kishore Chabria seems to be a winner over his arch rival Vijay Mallya. Chabaria’s Allied Blenders & Distillers (ABD) owned whiskey brand Officer’s Choice has overtaken UB Group’s Bagpiper in the Indian market in Financial Year 2012.

But this did not happen overnight. Back in 2007-08 Officer’s Choice whiskey, as per the company, quoting International Wine & Spirits Report (IWSR) was a distant No 2 with sales of about 66 lakh cases and a claimed market share of 14 per cent, while No 1 player was Bagpiper with about 1.32 crore cases. In FY 2012, Officer’s Choice claims to have sold 1.62 crore cases.

The challenge So what were the key challenges in front of Officer’s Choice in 2008? Ahmed Rahimtoola, VP, Marketing, ABD says, “Four years ago, although the brand was selling 66 lakh cases and growing, research indicated that the brand was showing signs of vulnerability. Packaging was staid and dated. The erstwhile brand communication was not relevant and differentiated, the value proposition was low vis a vis competing brands and the brand lacked a big brand feel.”

To address these challenges Officer’s Choice adopted a three pronged strategy: New packaging, brand repositioning and giving it a ‘Big’ brand feel.

Packaging The first step was to upgrade the packaging to more contemporary and dynamic

to give it a “today feel”. At the same time, certain core identifiers of the brand like the badge, the font and the red colour were retained so as to not alienate the existing consumer franchise.

Re-positioning It was found that the brand’s masculinity proposition was not relevant to the modern consumers. Rahimtoola says, “The research indicated that the Officer’s Choice consumer wants to be seen as a respected person who has authority and is conventionally successful. Recognition is his key motivation and the only way he believes he can achieve this, is through his deeds and actions. Being helpful, good natured and honest... The choices (right) he makes, is what he believes will make him stand out. Hence using these insights, we repositioned the brand OC on the righteousness platform with a tagline: ‘Jagaiye Andaar Ka Officer’ (Awaken the Officer in You).”

The big idea around which the campaign revolved was: ‘It is the choices and actions that we take that determine whether we are true officers or not, in life.’ The brand proposition was communicated heavily on TV through a series of three ad-films based on real life situations. The films show common men, faced with ‘choices’ that they come

Four years ago, Officer’s Choice’s packaging was staid and dated; brand communication was not relevant; and value proposition was low vis a vis competing brands 88

across in their day to day life and the right choices they make in life. It created empathy and affinity for Officer’s Choice and had a very ‘Feel Good’ quotient attached to it.

Other than TV, ATL mediums like Print, OOH and Radio were also used to push the new positioning of the brand. “Brand track research has indicated that the adorer base in terms of consumers has substantially increased after repositioning the brand,” adds Rahimtoola.

Larger than life image The third step was creating a ‘Big Brand Feel’. For this, the brand conducted CSR initiatives like Salaam Bengal & Salaam Rajasthan, sponsored big musical shows with leading Bollywood celebrities and local/cultural festivals.

Through Salaam Bengal and Salaam Rajasthan, common people who have contributed to society are recognised and rewarded for the work they have done. This helped the brand break clutter present amongst alcohol brands. Talking about the clutter in the BTL space, Sunil R Shetty, Planning Services Director, Draftfcb + Ulka says, “The challenge is that how do you differentiate yourself in a BTL scenario when every brand worth its salt is fighting for mindshare through similar activities. Hence it will be critical for brands to build properties which have resonance with the brand values and hence can be uniquely associated to build mindshare.”  -pallavi@pitchonnet.com

Pitch | July 2012

WOMEN FORTIS

Happy pregnancy Fortis is trying to make the maternity experience more hospitality based, rather than hospital restrictive

By Ruchika Kumar

L

apping up on the opportunity that the Indian maternity industry is currently providing, Fortis Healthcare has launched a one-stop solution for maternity related services under one roof, called Mamma Mia. Giving a whole new meaning to the entire experience, Mamma Mia will cater to the to-be mothers and first time mothers, within the minus nine to plus three prenatal and postnatal stages.

Explaining the inception of the idea, Anika Parashar Puri, Head, Maternity Services, Fortis La Femme, says, “The idea is to empower women to make their own choices during and after child birth methods and keep the TG informed of every maternity related concern.” Thus, the first such centre was rolled out in the Fortis La Femme hospital in Delhi. A new one is on its way to be launched in one of the Fortis hospitals in Gurgaon.

“The idea is to empower women to make their own choices during and after child birth” Anika Parashar Puri Head, Maternity Services, Fortis La Femme

Pitch | July 2012

A mom’s world The services that the centre provides include a group of birth professionals like child birth educators, who primarily assist expecting mothers on the queries they may have on the subject of labour and child birth. The centre also provides expecting mothers with assistants that play the comforting role of close relatives to support the mother during labour. Next, there are lactation counselors to give away tips on breast feeding related queries. The centre also organises customised Yoga and fitness classes for women, and holds counseling camps for expecting fathers.

The services further include prenatal and postnatal spas and massage trainers, and a holistic fertility support to couples undergoing IVF and IUF. The look and feel of the experience is premium that believes in pampering its TG. But being a relatively new concept in the country, the centre is taking baby steps towards a bigger roll out.

Bump ahead But is there any room for such initiatives in the Indian market? Sharad Sarin, Professor, XLRI feels that though an interesting concept, it is a niche within a niche, and personally feels that it will have limited appeal in the market. He says that the concept may give a feel-good factor to couples who are expecting their first child as the services in some way provide assurance to the mother of complete natal care.

However, he adds, “Couples living away from families in metros like Mumbai and Delhi will see some utility in this. I also think that affordability will be an issue for the mass consumer.”

But Puri feels that affordability is not going to be a hindrance as the services are

competitively priced vis-à-vis the ones available in the market. She also feels that today, consumers are ready to walk an extra mile when it comes to investing in child birth and post natal services.

“Earlier women in the family were supporters in the process, but now couples are more independent and nuclear and they don’t want to seek support from relatives. The demand for such institutions has increased in the last couple of years,” she adds.

Word of mouth works For Puri, the real challenge lies in educating consumers on the importance of such services. There is fairly limited knowledge among the TG. As opposed to countries like USA that have over 35,000 birth professionals, India has a handful of 30-35 experts in the field. Hence, the brand is trying to promote the concept majorly through print in terms of disseminating information through expert articles. Mamma Mia is not keen on TV as the concept caters to a niche clientele.

The brand is looking at digital marketing in a big way and is present on social media sites like Facebook and Twitter. It will soon roll out its own microsite and launch videos online with expert tips and advices.

However, more than that,the brand is depending a lot on word of mouth publicity through medical professionals like doctors and patients visiting Fortis for birth care related issues.” n -ruchika@pitchonnet.com

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EVENTS

Regional power: For the first time Pitch took its flagship property - The Pitch CMO Summit to Hyderabad and Chennai, last month. Here, we bring to you some learnings from some of the best presentations. The title sponsor for the event was The Economic Times and associate sponsor was TV9; and was supported

by Ad Club Hyderabad and Ad Club Madras

2012

Prey is better than spray

Brand: Reliance Retail

Presentation: Modern Retail: Reshaping consumer behaviour

Presented By: BIJOU KURIEN President and CE, Lifestyle, Reliance Retail

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O

ne of the biggest challenge for a retailer, is to make the store a brand itself, said Bijou Kurien, President and CE, Lifestyle, Reliance Retail, while speaking at the Pitch CMO Summit 2012 – South, in Hyderabad.

Kurien was the keynote speaker of the day and the topic of his presentation was

Modern Retail: Reshaping Consumer Behaviour.

Elaborating on the benefits of modern retail, Kurien said that according to international surveys and researches, 68 per cent of store-purchases are on ‘impulse’.

And modern retail with the benefit of allowing the consumer to touch and feel

Pitch | July 2012

2012

The South story and move around the store and in fact make comparisons between brands, can fuel that impulse.

Modern retail is becoming a media vehicle in its own right. The entrance, the floors, the walls, the ceiling and columns are important places where with right execution, by both the marketers and retailers, the consumer could be turned into a customer. And there colour and lighting, which according to Kurien are a mood enhancer, play an important role in converting ‘intent’ to ‘purchase’. While he said that physical infrastructure in retail is critical, he pointed out that in-store marketing and communication and marketing at point of sales is so under leveraged in India.

In shopper marketing, the difference between a retailer’s and a marketer’s perspective, he said was, while a retailer wants to drive in consumers to a store, a marketer wants to bring in a differentiation between his and the other brand.

Pointing out the challenges in shopper marketing, Kurien said that retailers have to think like a shopper; building the retail store as a brand in itself; and making the store a fun place to shop, as the place with same look and format could start looking jaded to the shoppers after a certain point of time.

Speaking during a question-answer session with the audience, Kurien said that e-retailing is here to stay and in fact a reverse trend is being seen where, particularly in the consumer electronics and gadgets segment, people are experiencing the touch-and-feel offline and going online to shop, because of the

The Statistics are bewildering 68% of consumers are brand switchers (Nielsen Media Research) Only 5% are loyal to one brand (POPAI Consumer Buying Habits Study) 73% shop in five or more channels (IRI Time & Trends 2007) 26% are loyal to an average retailer (General Mills Best in Class Shopper Loyalty) Reach: 3,000 marketing messages a day reach the average consumer (Maritz Loyalty Marketing)

Convenience: The number of retail channels has more than doubled in 50 years Choice: Over 45,000 SKUs await the consumer in the average supermarket (FMI Superfacts)

deals offered online.

Also, the opposite is equally true, where people found online and researched online and purchased offline, particularly in a category such as fashion, where the experience of trying out garments and fashion accessories is critical to trigger purchase, he said adding, buyers and consumers like to buy online, especially garments and then come to store and collect the garments after trying them physically in-store.

He assured that while modern retail is here to stay, it is no threat to traditional retail. The latter is in fact complementing modern retail. Ninety three per cent still is traditional retail, he said.

Reliance Retail, Kurien said, has not used mass media in a big manner. For Reliance’s jewellery stores, it relied more on one-to-one direct marketing, affinity based initiative where the store sent a box of Ferrero Rocher chocolates with a message about its range of jewellery to its shoppers from loyalty database.

This was much more effective both in

Modern retail is here to stay. It is no threat to traditional retail. The latter is in fact complementing modern retail. 93% still is traditional retail Pitch | July 2012

terms of investments and RoI as well as response as by spending Rs 2 lakh, Reliance was able to get in customers who on the average spend Rs 65,000 in a single visit and purchase. Hence, “I say ‘prey is better than spray’,” he said.

Talking about the trend where modern retail is being brought up by entrepreneurs to be able to be bought over by bigger ventures, he said, “The retail industry in India has lots of daughters and lots of sons. The daughters are being brought up and groomed and the parents, as in promoters of retail companies, are looking at marrying them off as in finding right suitors. Similarly, there are many sons whose parents, as in promoters, are looking to acquire brides for them.”

On asked, if he looks up to any one for inspiration in life and career, he named Xerxes Desai, the founder of Titan Industries, and Kurien’s former boss, who Kurien feels has had the ability of articulating a dream and getting the team to adopt it as their own and inspire them to realise it. He also had good words to say about his current boss, Reliance’s Chairman, Mukesh Ambani, who Kurien feels is a rare combination of thinking big, executing big but working together and detailing from an execution level. 

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EVENTS

Intangible products have to sell propositions

I

ntangible categories including financial products have to move beyond selling products and sell propositions, said Manisha Lath Gupta, CMO, Axis Bank, speaking at the Pitch CMO Summit 2012 – South in Hyderabad.

Delivering her address: ‘Marketing the Intangible: Focus on Service Related Communication in the Financial Sector’, Lath said that the benefit of a tangible product is that it has the capability of being touched, whereas in an intangible product the same is missing. Hence soaps, beverages and apparels fall under tangibles and travel experience, financial services and hospitality fall under intangibles.

According to her, the customer journey in tangibles starts with advertising, to the shop to the product and the promotion, whereas in intangibles, such as the financial sector, the journey is longer, which starts on advertising, to doing research, to the bank, to the employees at the bank, and the service given and finally the feedback. Hence, the focus areas in tangibles are the advertising, packaging and the product. In intangibles the focus areas are advertising, in a bank (for example), the employees who directly deal with the consumers, packaging, the product, and finally the payment gateway.

She added that in fact packaging is more important in intangibles that tangibles. And all have an according divided budget.

So what should be the service marketing mix for intangible products? Gupta’s answer was online marketing, shopper marketing, customer strategy, alternate channel interfaces, customer engagement and activation, customer relationship management, innovation and finally advertising. In this mix, she said, advertising is often the last point unlike tangibles where it would be the first point.

For intangibles too digital is the way

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Brand: Axis Bank

Presentation:

Marketing the intangible: Focus on service related communication in the financial sector

Presented By: MANISHA LATH GUPTA CMO, Axis Bank

forward, which can no longer be ignored.

In fact people are doing more research online, and educating themselves before buying the product, Gupta said. Hence, it was more important for the service providers to have an online presence and give them the information.

In the digital marketing spectrum, for awareness and evaluation/recommendation, a mix of search engine marketing, search engine optimisation, and social media marketing are the key tools. The latter also plays a big role in adoption and building loyalty, Gupta said.

So why go social? To start with, Gupta warned that social marketing does not replace web marketing. Social media hu-

manises the company and becomes an interface to interact with the consumer/ customer. Social media puts the customer in the core and also introduces new value drivers in the company’s strategy.

Quoting a Blogworks and exchange4media study, Gupta pointed out that an overwhelming 85 per cent respondents in a survey agreed that social media impacted buying decisions. High involvement categories like automobiles, gadgets, mobiles, healthcare, travel, finance, will likely see more impact than low involvement categories.

But she warned the strategy should be right as it was easy on social media for the customer to simply ‘Unlike’ the brand and remove it from his preference choices. And since the buzz travels faster and peer influence is much more there, the damage to a brand is far greater. She gave examples of Axis Bank how it utilised social media – Facebook, YouTube and interactive apps – Meri Zindagi Ka Safar campaign; and delivering the brand values through the Axis Bank Green Banking Campaign.

Laying emphasis on ‘Shopper Marketing’, particularly in an intangible category, Gupta said that a unique and differentiated retail experience to customers goes a long way in building brand affinity. Some of the initiatives

Pitch | July 2012

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that Axis Bank took in this regard was by laying a new layout for its banks. Self help zones were created, guidance and knowledge was provided at various parts of the bank, services were tangibilised through big displays.

She gave an example of Kingfisher Airlines, which with its ‘branded talk strategy’ was able to become a differentiator, in an intangible category. It was able to create experiences. It was an airline, which started

calling passengers as ‘Guests’ and all of a sudden, it became a branded word, which no one else would use it. People would talk about its services like how their luggage was picked up at the airport and how they were addresses as ‘Guests’.

The next step for any banking services could be to create alternative channel interfaces. Digital arm is not limited to social media. Every online payment transaction

is a brand experience, and hence keeping these alternate channels easy was a must.

The way forward for the banking sector was to get mobile. Transactions would be made through mobiles and cards could get redundant very soon.

For the record, Manisha Lath Gupta was among the ‘Impact 50 Most Influential Women’ in the Indian media, advertising and marketing domains. 

New age consumer not shying from spending Brand: Visa

Presentation: E-commerce & the new age consumer: Shifting realities

Presented By: SHUBHRANSHU SINGH CMO, Visa

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he consumer is evolving and the new age consumer is not shying from spending more, as compared to an earlier generation, said Shubhranshu Singh, CMO, Visa, at the Pitch CMO Summit 2012 – South, in Hyderabad,.

Speaking on the topic, ‘E-Commerce & the New Age Consumer: Shifting Realities’, Singh the new age consumer is more comfortable spending online, and that has given a fillip to e-retail.

He put the consumers in three categories

Pitch | July 2012

– young, the not so young and the old. He said while the young wouldn’t think twice before spending, the not so old would think twice because responsibilities made them cautious towards saving, while the older generation was conservative in its approach towards spending, which focused more on saving.

He also, talked about the growing influence of digital, something marketers cannot ignore any more and traditional advertising will not be enough to reach out to people. “In every nook and corner, there are youngsters with mobile phones that have internet access. This spells an opportunity that is knocking at

the door,” he said.

He agreed with Manisha Lath Gupta, CMO, Axis Bank, who made a presentation earlier in the day, that today digital marketing has come on top of traditional advertising. It is not that it has come as an alternative to traditional advertising.

He said that people ‘believed’ word more on social media rather than believe an advertisement. They would prefer a feedback from a friend about a service or product rather than an advertisement.

In agreement with Gupta, he said that brands could with just a click of an ‘Unlike’ button find themselves blocked out from the consumer’s preference list.

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EVENTS

Touch emotions in low involvement category

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n a low involvement category such as chewing gums, salt, ghee, steel and cement, it is difficult to bring about much differentiation. The challenge for marketers is to build brand recall.

Madhusudan Mokashi, VP, Marketing, Hyderabad Industries, speaking at the Pitch CMO Summit 2012 – South, in Hyderabad, said that brands have to move beyond product benefits to build a successful brand.

Mokashi’s topic for the day was ‘Marketing in a Low Involvement Category: Building a Brand in the Building Materials Sector’.

He said that while in a high involvement category, a consumer spends maximum time in taking a purchase decision, one can measure the benefits, like and dislike the product, and are usually high priced, the same cannot be said true for products in a low involvement category.

While one can touch and feel a product in a low involvement category, it is difficult to measure the benefits, and like and dislike may not exactly matter, he added.

In most of the cases, Mokashi said, a low involvement category product is an ‘intermediary’ and not the end product. For example salt, cooking oil and cement are additives to a final product, such as food or a wall.

Considering that there is least involvement in the category, the biggest challenge for a marketer in a low involvement category is to build brand connect with the consumer. Also, since there isn’t much product differentiation, which can be measured, say for example, salt.

The challenge, he said can be overcome by going beyond product benefits

Brand: Hyderabad Industries Ltd

Presentation: Marketing in a low involvement category: Building a brand in the building materials sector

Presented By: MADHUSUDAN MOKASHI VP, Marketing, Hyderabad Industries to propositions. Emotions need to be tapped and a feel good factor is a must to be built around.

Captain Cook, Tata Salt, Dalda, Safola and Annapurna are some examples in a low involvement category that have managed to become big brands as they

While one can touch and feel a product in a low involvement category, it is difficult to measure the benefits, and like and dislike may not exactly matter 94

have been positioned thoughtfully, Mokashi said. These brands, according to him have been positioned on health and hygiene platforms, so much so that some of these brands have become generic to the category itself.

Another successful example, he said, was Cafe Coffee Day, which went beyond the drink to touch the emotional chords of consumers, with its positioning: A lot can happen over coffee.

He also gave an example of Ultratech Cement, a company where he has worked earlier, how the brand, which was positioned on product benefits, has evolved in its positioning over the years to touch the emotional chords of the consumer, while retaining its catchline: Iss Cement Mein Jaan Hai. While initially the word ‘Jaan’ was used to bring about the product benefit of ‘strength’ of the product, it has overtime evolved into meaning ‘life’, Mokashi said, adding that people build homes and not houses, where they live and the cement breathes life into construction.

In all of the above, the positioning has helped these brands to build intangible long-term benefits, which are based on emotions, feel good factor, positivity, which go beyond the product. 

Pitch | July 2012

2012

Changing the truck market

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omething like after-sales service is given in the cars business but Ashok Leyland is trying to provide the same in the trucks business too, said Nitin Seth, Executive Director, Ashok Leyland at the Pitch CMO Summit 2012 – South, held in Chennai.

Seth was speaking while giving his Keynote Address on: Marketing Challenges in the B2B Space.

Seth started with saying that he has spent a major part of his career selling cars; after moving to Ashok Leyland, he realised the challenges in selling trucks as one wasn’t speaking to a single consumer but entirely a B2B market such as transporters who deal in the business.

Trucks are important part of the supply chain in the economy and need to be upgraded with facilities and comfort for the driver. Something simple like a follow-up after a sale and service of the truck, which Ashok Leyland has started doing, is pleasantly surprising the drivers and the owners, Seth said, adding that today even truck drivers expect on-road and on-demand quick service from the company. These things, he said are a basic hygiene in the cars business and the industry has been doing it forever.

However, in the trucks business nobody was giving that service till now.

“We are selling at a 15 per cent premium, while my competition is selling at a discount, yet we are changing the market and so better we give the drivers more facilities,” he said.

Trucks are being used for dual purposes.

During the day the truck is used for transporting goods, in the evening, the driver takes his family out. Till now trucks just had two seats in the front. But Ashok Leyland is putting three seats in the front, so that the

Pitch | July 2012

Brand: Ashok Leyland

Presentation: Marketing Challenges in the Automotive B2B Space

Presented By: NITIN SETH Executive Director, Ashok Leyland

driver can seat his wife and kid too, Seth said.

He rued the fact that while cars have studies such as JD Power, which talk about customer satisfaction on various parameters, there was no study for the trucks business.

He said that 80 per cent of the cars have air-conditioners and power-steering, so why shouldn’t the trucks. Ashok Leyland is changing the market by providing these simple features.

Also, the company has started selling accessories at its dealer network only, rather than letting the driver buy from outside. A

simple thing like stereo, which comes prefitted in a car, doesn’t come in a truck. “We have started selling stereos at our showrooms itself. The driver is assured of the quality rather than getting it fitted from the roadside,” Seth said. The stereos are being sold at a reasonable price.

“We need to give the truck driver a ladder, and we need to graduate,” Seth said, adding, “the competition is going to be stiff in the next five years and we need to start talking to people.”

He gave an example of the buses where people travelling, for instance, from Pune to Mumbai. These travellers didn’t say that they were travelling in an air-conditioned bus; they rather said that they were travelling in a Volvo. “They are using the brand name,” Seth said, adding, like Volvo changed the bus business, Ashok Leyland, similarly is changing the dynamics of the trucks business too, and competition already is opening its eyes to that.

Ashok Leyland is largely known in South India. It has to take its name to the north as well. The company recently hired Mahinder Singh Dhoni as its brand ambassador. Will Dhoni help the company sell trucks? Seth said that Dhoni wasn’t there to sell trucks. He has been hired to make people aware about the brand value Ashok Leyland stands for. 

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EVENTS

Customers own brand Royal Enfield

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he customers are the real brand ambassadors of Royal Enfield, said RL Ravichandran, Executive Director, Eicher Motors, while delivering his valedictory address: ‘Royalty Galore: Sustain-ing a cult brand like Royal Enfield’ at the Pitch CMO Summit 2012 – South in Chennai.

Elaborating, Ravichandran said that the brand’s ‘The Trip’ campaign is a tribute to this ambassadorship, and its authentic character. The campaign features actual Royal Enfield users with their actual bikes and their real stories. “Devoid of hype, the campaign establishes Royal Enfield as the last link with an adventurous, hands-on world in a time of virtual reality,” he said.

To commemorate the spirit of adventure and leisure motor cycling, Royal Enfield has initiated Royal Enfield Rider Mania, an event which happens every year in India. It is reckoned as the annual get together for all Royal Enfield riders and enthusiasts, he said.

Enfield. For the record, Royal Enfield originated in UK, where it shut shop long ago.

However, in India, it went on to become a cult brand, and is today exported to 44 countries, including UK. Today, Royal Enfield is to Indian, what Harley Davidson is to many in the US. The brand became popular in India, after the Indian government chose Royal Enfiled as a bike for police forces and army patrolling the country’s border.

Today, there are over 100 registered Royal Enfield clubs in India. These clubs are not supported monetarily by the company. “The clubs only want service from us,” Ravichandran said.

Online – royalenfield.com – there are close to 90,000 Royal Enfield number plate registrations. “The difference between our website and any other website is that, nowhere in the website we try to sell our products,” he added.

Each bike, according to Ravichandran is

Royal Enfield has a mantra – ‘Keep Riding’ and this has brought the company to organise 240 rides last year across India and over 2,400 people participated in it

Brand: Eicher

Presentation: Royalty Galore: Sustaining a cult brand like Royal Enfield

Presented By: R L RAVICHANDRAN Executive Director, Eicher Motors

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“This event is the only one-of-its-kind motorcycling lifestyle event in Goa where like-minded individuals, riders, fans of Royal Enfield – both Indian and foreign nationals come together for three days of fun-filled motorcycling activities, good food and drinks, tonnes of music and entertainment, he added.

Royal Enfield has a mantra – ‘Keep Riding’ and this has brought the company to organise 240 rides last year across India and over 2,400 people participated in the event. This year, the target according to Ravichandran is 400 rides. “Royal Enfield is the only pioneer of promoting leisure riding as a culture in India,” he said.

Delving into the history of the brand, Ravichandran said that Enfield merged with Eicher Motors in 1994 and that merger had the name Enfield India changed to Royal

handcrafted with Royal Enfield’s signature styling. He clarified that while Royal Enfield never sells on fuel efficiency claims, however, the bike follows the government’s stringent emission norms.

Special care is taken to get the bike’s “tune” right, he said.

The Royal Enfield factory in Thiruvottiyor, in Tamil Nadu, is a ‘Live Museum’, where the factory organises booked trips to the ‘Museum’.

Answering to a question from the audience on how the brand compares itself to Harley Davidson, Ravichandran said, “Anybody can ride a Royal Enfield and can go on any terrain. On the other hand one might be able to afford a Harley Davidson but not everybody can ride it as it needs a certain posture to ride it, which makes it difficult in rough terrains.” 

Pitch | July 2012

2012

PHOTO-OP: HYDERABAD

K Ravinder Reddy of Janapriya Engineers Syndicate

Ratnakar Rao of Breeze Advertising

Suresh Balakrishna, CEO, Brand Programming Network (LMG)

(L-R) Santha John of JWT; Ramesh Bhaskar of 92.7 Big FM; Sriram Gopalakishnan of Indian School of Business; Suresh Reddy of Ybrant Technologies; Syed Musharraf Mehdi of Ad Age Outdoor Advertising; & I Venkat of Eenadu Publica tions

Varsha Ratnaparke of Indian School of Business

Pitch | July 2012

Santha John of JWT

PK Sahgal of Lowe Lintas and P Subramanian of OTS Advertising

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PHOTO-OP: CHENNAI

Harkirat Singh of Woodland

Satya Prabhakar of Su

lekha.com

ll known blogger Kiruba Shankar, A we

B Srinivasa of Viveks

ni up felicitating Neeraj Moorja Ninan Thariyan of Times Gro kar bha Pra ya Sat h . Along wit of Cholamandalam Insurance han of Indian Terrain asim Nar th ara Ch & m of Sulekha.co

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Sivaprasad, senior media professiona l with Murugavel Janakiraman of Bharatm atrimony.com

G R Anand of GRT Group

(L-R) Skandraaj of Dinamalar, Ramesh Praba of Kalaignar, Venugopal of Sun Direct, Srinivasan Swamy of R KSwamy BBDO, Shankar B of Fourth Dimension Media Solutions, Narendra Alambara of Sovereign Media Solutions, & Arun Anant of The Hindu

Pitch | July 2012

COLUMN

Branding spirituality From The Art of Living, Inner Engineering, Brahma Kumari... there are brands aplenty that have identified the need of ‘spiritual salvation’

I

Suparnaa Chadda

Editorial Consultant, exchange4media Group

suparnaa@simplysuparnaa.com @simplysup

Branding spirituality may after all have its own work carved out in this complex matrix of existence.

Maybe, I have to be more accepting and less sceptical Pitch | July 2012

ndia - the land of saints and spirits. History enmeshed so deep from the beginning of time that it’s simpler to term it as mythology instead.

Every corner has a myth to make it all the more interesting. Some wise old men, some quacks, some enlightened and still some others pedalling enlightenment. Depending on your money’s worth, there are celestial experiences waiting a plenty that promise to deliver you nirvana.

The first strategic step to any branding is to identify the need and fulfil it. From The Art of Living, Inner Engineering, Brahma Kumari... there are brands aplenty that have identified the need of ‘spiritual salvation’. There is a market and there is a marketer. And all the basic rules are followed to the T. Through stating a mission, packaging products and services rendered. All have their celebrity brand endorsers and on-ground marketing executives claiming their brand as the best towards spiritual enlightenment. Each also has a USP - some propound a hugging saint, some dancing and still others claim to make you fly. While competition is immense, each spiritual brand acquires the age old techniques of breathing and meditation and coins a unique product name. ‘Have you done the Sudarshan Kriya? I am doing the Shunya Meditation.’

There’s even a gibberish meditation and so the jargon is flung across the uninitiated. Logos, dress codes, books, websites, the works... India has it all.

On my recent trip beyond the land of spirituality to the land of opportunity, I had a few interesting experiences of my own. The journey started at the International Airport in New Delhi, and an encounter with ‘Ishana’ or the Conscious One as it literally translates. Leaving aside my scepticism of branding spirituality, I walked into this 4,000 square feet area offering me pathways to become conscious. A quick stroll and I was ready to dispel it as another one of those fancy labels in the garb of Indian spiritual experience. Food stuff, books, music, massages – you name it! (Incidentally they also had a Thai massage room as part of the Indian experience). On my way out, I was intrigued by a pool of water with a Shiva Linga in its midst. A hostess explained that I could dip my feet in and could also

stroll in the pool through a parikrama to massage my soles with the acupressure nodules at the base of the ankle deep consecrated pool. After a little hesitation (wondering if I will be charged for that too), I stepped in and did a few circles. It amused me to be walking bare feet in a pool of water at an airport. It did manage to get me conscious of myself performing such antics. I must admit, it did relax me. The cool water, the mild incense managed to relieve me of my stress. What was more relaxing? It was free.

My second experience was on the Capitola beach in California. As serendipity would have it, I met two young American girls intrigued with ‘the beyond ‘and the experiences that India had to offer. All three of us met while standing guard to a seagull, which was evidently hurt and had become a source of entertainment to young kids - pelting stones and poking sticks. That had all three of us surround the bird till the life guard cordoned off the area. In our brief chat, I was informed that Americans are being ripped off of huge money in the garb of branded spirituality and that they would want to experience it first hand in India. The New York Times’ best-seller list on religion and spirituality pops up 1,747 titles. Apparently, according to the LOHAS journal, there is a $10.63 billion market in the US for personal development, which includes CDs, books, tapes and seminars for mind body and soul. I sighed and wished them luck. Like a holy trinity we stood in silence for a bit. And then bid good-bye and went our own ways.

Maybe, it’s through these moments I can experience spirituality. Maybe, fancy brands are necessary, if anything, to make strangers meet and discuss. Maybe there are no paradigm shifts but brief moments in time on the edges of water bodies.

Branding spirituality may after all have its own work carved out in this complex matrix of existence. Maybe, I have to be more accepting and less sceptical. For who knows what I may miss in my nihilistic attitude.  The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

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COLUMN ANNURAG BATRA

The generation of ‘go getters’ Rebellion has been the key starting point of the evolution of youth; and brands targeting them need to search for ways to up their ‘cool’ quotient

Annurag Batra Chairman & Editor-in-Chief, Pitch Magazine abatra@exchange4media.com @anuragbatrayo www.facebook.com/anuragbatrayo

“Youth is not a time of life; it is a state of mind; it is not a matter of rosy cheeks, red lips and supple knees; it is a matter of the will, quality of the imagination, vigour of the emotions; it is the freshness of the deep springs of life.”

-Samuel Ullman

Y

outh is not just a demographic, the majority representative of the changing population dynamics; it is a state of mind. Over the years, there has been a paradigm shift in the mindset and consumption pattern of the younger generation. Greater global exposure and outlook has given rise to a savvier, bolder, and highly self-reliant generation of ‘go getters’. Add to this, the plethora of options available in every sphere. This has the young, discerning consumer spoilt for choice.

They are not risk averse but are willing to experiment and tread the unbeaten path - attributes that have been accentuated by their growing purchasing power.

It is difficult to ignore the youth and their behavioural tendencies while drafting the marketing blueprint for a brand/product. Having emerged as one of the most

competitive consumer segments, characterised by a wavering attention span further amplified by the bewildering range of choices, marketers are looking at innovative strategies, right from product conception to the communication and marketing stage to effectively hold the youth’s attention and convert it into sales.

One of the most popular youth brands - MTV, recently came out with a comprehensive study on today’s youth.

‘MTV Power of One 2012’ was the result of extensive research conducted across 30 cities with close to 5,000 respondents in the age-group of 15 to 24 years. According to the findings, more than 50 per cent of the surveyed youth feel that they derive their power from social media, and almost an equal number agree to lodging complaints online if they don’t get good service from brands.

The digital platform has emerged as one of the strongest and most effective platforms to engage with the tech-savvy, internet reliant generation and brands are exploring different layers of the digital media to tap this consumer set. The web has also

The youth of today have an entrepreneurial spark, fuelled by their independent streak. Every now and then, we hear of youngsters forgoing lucrative offers to open their own, entrepreneurial ventures 100

become the ultimate sharing platform for the youth and has led to a convergence of the young generation into one unified whole, while at the same time retaining each individual’s distinctiveness.

The youth of today also have an entrepreneurial spark fuelled by their independent streak and personal goals.

Every now and then, we hear of youngsters forgoing lucrative offers to open their own, entrepreneurial ventures.

One such start-up that has stirred up a storm in the digital space is thefancy.com, a social photo sharing website and an app created by Joseph Einhorn. The website monetises on the collection of images that has been curated by users. After a certain number of people fancy a product, the website gives the seller of the product an opportunity to sell the product to the people who have fancied it, at a discount.

Rebellion has been the key starting point of the evolution of youth and brands that are looking to tap this segment need to search for ways to up their ‘cool’ quotient.

With all their steadfastness and experimental zeal, youth, for me is an oxymoron. While they are surrounded by an aura of exclusivity on one hand, there is also an underlying desire to be part of society, to be part of that one unified whole. 

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Pitch | July 2012