Volume X Issue 10 | Sep-Oct, 2013
FESTIVAL
MARKETING Pitch | Sep-Oct 2013
Will the marketing blitz for the festival season turn around the fortunes of brands? 7
6
Aug-Sep2013 2013 Pitch | Sep-Oct
RNI Reg. No. - DELENG/2004/13757
Aug-Sep2013 2013 Pitch | Sep-Oct
73
INSIDE COVER STORY
Pitch Volume X, Issue-10 Sep-Oct, 2013 Publisher & Editor-in-Chief Annurag Batra Editor & Director Amit Agnihotri Director Nawal Ahuja
EDITORIAL TEAM
Consulting Editor
Vinod Behl
Deputy Editor
Rashi Bisaria
Senior Correspondent
Gunjan Verma
Correspondent
Ankur Gaurav
Senior Art Director
Shamsad Shaikh
Graphic Designer
Joby Mathew
Photographers
Vilas Kalgutkar (Mumbai) Suresh Gola (Noida)
14
0
AD SALES
Rohit Sardana Abdulla M Mazumder Varnikaa jain Sneha Walke
9811377592 9871609348 9769153087 9845541143
0FFICES
NEW DELHI: Shop No. 32, 33 south Ettn. Part-I, Om vihar, Uttam Nagar, New Delhi 110 059 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
CIRCULATION/DISTRIBUTION
Vinod Sharma (Delhi) - 9999447209 vinod@exchange4media.com Anandan Nair (Mumbai) - 9819445200 anair@exchange4media.com On News-stands ` 75 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
What hope does the festival season hold out for brands? A close look at the coping strategies for marketers.
Are Festivals the right time to release your film?
20
Shahrukh, Salman and Aamir have been vying for the festival slot for years now and the audience keep a lookout for the big ticket releases at this time of the year
Printed at All Time Offset Printers, E-53, Sector-7 Noida, Uttar Pradesh - 201301 An exchange4media Publication
2
Pitch | Sep-Oct 2013
Online Gifting: A boon for brands The gifting companies, brands and social media platforms have teamed up to entirely change the face of gifting in the country
“Marketers can save the world”
42 The Big Fat Indian Wedding Industry
24
The industry has become organised with fashion designers becoming beacons for bridal fashion
INTERVIEWS
32
Making a brand meaningfully different Prasun Basu | Managing Director,
10
South Asia Region
Delivering Smiles this season Pawan Gadiai | CEO-Retail and E-Commerce,
Simon Clift
28
Ferns N Petals
Former Unilever, CMO
Fresh twists in 46 interactive marketing
Time to upgrade and renovate Kashyap Vadapalli | Chief Marketing Officer,
30
Pepperfry.com
India’s future seen through the lens of 21 thought leaders
41
Dr M.G.Parameswaran | Executive Director and CEO of Draftfcb+Ulka Advertising
Smart phones are the biggest drivers of mobile based innovation in advertising. QR codes and missed calls have seen a dramatic rise in popularity over the years Pitch | Sep-Oct 2013
OTHERS Column : Gayatri Shrikhande Column : Ramanujam Sridhar Column : Mark Ingwer Column : Annurag Batra
33 37 38 48 3
LAUNCHPAD
Gadgets & Gizmos TATA SAFARI STORME
‘Explorer Edition’ The Product: The new Tata Safari Storme ‘Explorer Edition’ is a true outdoor companion, which has customised outdoor essentials and a host of in-vehicle technology features based on the ‘real SUV’ masculinity and utility. Specifications: Along with the new chrome garnish for the projector headlamps and tail lamps, the Safari Storme spoilers are complemented by new aerodynamically designed Door Visors, allowing occupants to keep their windows slightly open, ensuring minimum drag when the Real SUV moves at high speeds. The new 2-DIN TouchScreen Infotainment System, provision for On-Screen Reverse Parking Assist, a robust navigation system, ESOF (Electronic Shift On the Fly) technology, enabling engagement of the 4x4 or 4X2 mode on the move carves a niche for this SUV among adventure and travel lovers.
NOKIA LUMIA 925 & 625
USP: Keeping in line with the utility aspect of the Safari Storme Explorer Edition is a customised Cycle Carrier. For increased space, a Cargo Basket designed especially for the Safari Storme, finds its way in the rear of the vehicle. A Roof-Mounted Canopy lets the adventure seeker make the most of the great outdoors. Background: Tata Motors is India’s largest automobile company, with consolidated
For your Eyes and Ears
The Product: Nokia announces two new additions to its Lumia portfolio in India - Nokia Lumia 925 and Nokia Lumia 625.The new Nokia Lumia 925 offers a superlative imaging experience whereas, Nokia Lumia 625 is designed for a great entertainment experience.
Specifications: Nokia Lumia PureView camera and Nokia’s next generation imaging software to deliver clearer, sharper pictures and video. The Lumia 625 with 4.7-inch super-sensitive LCD screen is Nokia’s largest smartphone screen. Nokia has also teamed with Coloud™ to create a new range of headphones. The headphones come with Zound Lasso, a smarter way of managing the cable. USP: The Nokia Lumia 925 comes with wireless charging cover that can be clipped onto the back of the phone. Nokia Lumia 625 consumers in India will get entertainment package worth ` 16000/- absolutely free of cost including movies, eB-
4
revenues of ` 1,88,818 crores ($ 34.7 billion) in 2012-13. With over 7.5 million Tata vehicles plying in India, Tata Motors is the country’s market leader in commercial vehicles and among the top in passenger vehicles. It is also the world’s fourth largest truck and bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia.
ooks from Flipkart and access to the Nokia Music Store. Your Movies is the only movie app that allows users to also download movies on to the device. All users will have free access to Ozone Wi-Fi zones across India at more than 800 youth hangout zones that include Café Coffee Day, McDonalds and Subway among others. Background: Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and share experiences, access information, find their way or simply to speak to one another. Nokia’s technological and design innovations have made its brand one of the most recognized in the world.
Pitch | Sep-Oct 2013
ROMEDY NOW
MICROMAX CANVAS4
Life Can Be Endless The Product: Exemplifying sleekness and simplicity, the Canvas 4 sports full aluminum mid-housing and users can now ‘blow’ to ‘unlock’ their smartphone. Specifications: Equipped with a 13MP camera with image sensor, the Canvas 4 promises features like face detection, photo solid to increase precision, Geo-tagging, touch focus, smile and face detection, four direction panorama and 1080p video recorder. Users can also enjoy additional benefits with a 5MP front camera. The phone packs smart gestures that allow users an array of features like, ‘Proximity answer phone, Downside Silent, Upside speaker and Proximity dial phone for easier and hassle free functioning. USP: This one is designed for multitasking. You can watch a video and at the same time watch a preview of another video with ease, pause the video when you are not looking at the screen, or use the option of video pinning to continue surfing on the phone
while the video continues to run. Micromax also offers a unique, M! Security feature that offers security solutions including Back-Up, Anti-Theft Tracker, Anti-Virus. Background: The Indian handset brand is reaching out to global frontiers with innovative products that challenge the status quo. With an in-depth understanding of rapidly changing consumer preferences coupled with the use of advanced technologies, Micromax has been able to differentiate itself from the competitors through innovation and design. Headquartered in Gurgaon, Haryana, the product portfolio of the brand embraces more than 60 models, ranging from feature rich, dual-SIM phones to QWERTY, touch-enabled smart-feature phones and 3G Android Smartphones.
A Romcom Channel The Product: The Times Group is all set to broaden its horizons with its latest venture in the English entertainment categoryROMEDY NOW. Catering to urban audiences, ROMEDY NOW is a one- of- its- kind English entertainment channel that blends ‘Love & Laughter’. Approach: In keeping with the global trend of growing viewer preference for lighthearted entertainment Romedy Now is an entertainment destination dedicated to ‘Love &Laughter’. The programmes are a mix of light-hearted romance and comedy. USP: Romedy Now is the only channel in the world to bring about a marriage of ’Love & Laughter’ in a seamless manner. Sourced from across the world, it will showcase both movies & dramas to distinctively entertain its audiences. This will include new
GODREJ NATURE’S BASKET
Food for the soul
content, yet to be launched worldwide. Its impressive HD quality movies & series are sure to be an attractive magnet for MSOs and DTH operators seeking to provide world class content to their growing digital household base.
The Product: Godrej Nature’s Basket has introduced a virtual food destination. The site is well categorized and interactive for the viewers. Specification: The website has more than 3000 SKUs which is a huge advantage for people staying abroad. They can stay connected with their loved ones in India by sending gifts online on special occasions. USP: The website has a strong visual appeal along with interesting food ‘tips and tricks’. It also offers a loyalty program where each time the consumer makes a purchase from the exotic collection of world food, the points add to the collection. The tool ‘Shop by Recipe’ helps the patrons to shop according to the recipe. The recipes by re-
Pitch | Sep-Oct 2013
nowned chefs have also been posted on the website. Background: Godrej Nature’s Basket of the Godrej group is today India’s foremost retail destination for fine foods. Started in 2005, it has today morphed into a 27 store chain of premium gourmet stores strategically located on high streets in Mumbai, Delhi, Gurgaon, Pune, Bengaluru and Hyderabad. Every item on the shelf is handpicked from the very best that Europe, Australia, Asia and US have to offer.
Background: Times Television Network is a part of India’s largest media conglomerate, The Times Group. It owns brands like ET NOW – India’s No. 1 Business News channel; MOVIES NOW – India’s leading English Movies channel; ROMEDY NOW – a unique destination for Love and Laughter; TIMES NOW – India’s No. 1 English News channel; and zoOm – India’s No. 1 Bollywood channel. It informs, entertains and engages over 100 million urban viewers in India and is available in 45 countries across the globe.
5
LAUNCHPAD ACER ICONIA W3
TITAN’S SKINN
A Tablet that fits in your hand The Product: Acer’s Aspire W3 offers Windows 8 in a device that can be held comfortably in one hand. It offers adequate functionality for daily office use and basic multimedia features. Specifications: This 8-inch device weighs 540 grams and is over 13 cm wide. With a thickness of 11.35 mm, it can be aided with an optional Bluetooth keyboard dock, which is fairly large. USP: It is compact, light-weight and has a Windows 8 interface. This is also the first Windows tablet of its size. Background: Acer designs environment friendly products and, with its vendors, has established a green supply chain. The brand’s PC-centric product offering includes notebook and desktop PCs, servers and storage, LCD monitors, projectors, smartphones and tablets. Sub-brands include the consumer-focused Aspire series, and commercial sector TravelMate and Veriton series.
SAMSUNG GALAXY NOTE 3 GALAXY GEAR The Product: Korean giant Samsung consolidated its position at the top of the pile by launching Samsung Galaxy Note 3 that is aimed at making life simpler for the busy professionals. Along with the phablet, Galaxy Gear, a wearable device was alsolaunched, which is the first wearable tech device from Samsung which works only with the phone. Specifications: Galaxy Note 3: The new S Pen reinvents and modernizes the classic note-taking experience by providing the ability to accomplish everyday tasks with just one click. A simple click of the S Pen button while hovering over the screen introduces users
7 Deadly sins The Product: Titan Company Limited forayed into the personal lifestyle segment with the launch of the SKINN Titan range of fine fragrances. The selection of six scintillating perfumes bears the hallmark of Titan, with the assurance of the TATA group. Specification: The six variants of SKINN – Raw, Extreme and Steele for men and Imera, Celeste and Nude for women have been created by renowned perfumers. They are in the EDP (Eau De Parfum) format. They are devoid of any dyes and have been Dermatologically Tested. USP: Titan is a renowned and respected Indian brand that is well known globally. The fragrances are developed by French perfumers and are made in France, thus are modern and international in essence. Background: Titan Company Limited (earlier known as Titan Industries Limited), a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO) commenced operations in 1987 under the name Titan Watches Limited. In 1994, Titan Industries diversified into Jewellery and more recently into Eyewear with Titan Eyeplus.
Design your life
to Air Command, a palette of five powerful features that truly make tasks easier and faster. With the Air Command feature, there is no need to toggle between screens, memorize commands or look up different menus. The 5.7-inch full HD Super AMOLED screen provides a stunning and defined video viewing experience for watching full HD content, distinct clarity for reading and an elegant canvas for content creation. The new GALAXY Note 3 comes with enhanced privacy and security protection provided by Samsung KNOX. It is available with 32 GB internal storage along with an additional micro SD card slot for an additional storage of up to 64 GB. The GALAXY Note 3 will come pre-loaded with support for 11 regional Indian languages including Hindi, Punjabi, Bengali, Gujarati, Tamil, Telugu, Malayalam, Kannada, Marathi, Oriya and Assamese. Galaxy gear: GALAXY Gear will notify users
and give them quick previews of incoming texts, emails and more coming from GALAXY Note 3. It weighs 74 grams and has a base of stainless steel. Available in six bright colors, it has AMOLED display. Along with 1.9 MP memographer, the gear becomes a shrunken smartphone screen. USP: Together, GALAXY Note 3 and GALAXY Gear extend Samsung’s efforts to provide users with the opportunity to design their lives, to express their passions and to make everyday life more easy and enjoyable. Background: Samsung Electronics Co., Ltd. is a global leader in technology, opening new possibilities for people everywhere. Through relentless innovation and discovery, Samsung deals in televisions, smartphones, personal computers, printers, cameras, home appliances, LTE systems, medical devices, semiconductors and LED solutions. Compiled by Gunjan Verma -gunjan.verma@exchange4media.com
6
Pitch | Sep-Oct 2013
BUZZ
Campaigns TVC
BRiTaNNia CHeeSe
Storyboard: The film opens with a kid staring at something in the freezer in the supermarket. The kid picks up two Britannia Cheese packs from the freezer. He runs towards his mom and asks her to buy Britannia Cheese. The mom is busy on call and searching for grocery and turns down her son’s request to buy the cheese. The child begins to sing, “Yeh cheese badi hai mast mast…” The mother sees the kid singing and gets embar-
TVC
rassed when others start noticing this act. The kid sings the song along with stating all the healthy ingredients the cheese has. Other children in the supermarket join him and flash placards with Protein, Vitamin & Calcium written on them. The mother finally agrees to buy the cheese. It closes with her singing the same song with her son at the dining table. Rationale: In India, cheese is largely understood to be a taste enhancer often associated with fast food and thereby perceived as fattening and unhealthy. Britannia wants to break the myth and talk about the wholesome goodness of Cheese. The basic proposition of “A glass of cow’s milk in every slice” is now taken to the next level by positioning Britannia Cheese as a rich nutritious food item packed with Calcium, Protein and Vitamins, and communicated through a popular Indian idiom that is both engaging as well as entertaining. n
JaBoNg.Com
Creative Agency: In-house
Pitch | Sep-Oct 2013
Cheers to Man hair Storyboard: The TVC shows a man talking to the camera while performing ‘manly’ things. It opens with him saying ‘Man hair is different’ as he is about to chop the bark of a tree with his axe. When he does, a sculpture of a woman is revealed. After driving in a vintage open top car with two young women, he’s shown displaying his biceps while holding a bunch of grapes, saying, ‘You gotta care for that man hair’. If one doesn’t, the message is that they’ll end up looking like a bear – like the one he scares away with his scream while lifting weights in the woods. Seated next to his milk and cookies at night, he exhorts viewers (men) to get a shampoo that has something men love – not the attractive young women who pop up, but the beer that follows. He picks up a bottle of Park Avenue
Beer Shampoo from the bathroom shelf while two young women in the background enjoy themselves in a tub. He warns men not to drink it, just because it’s a ‘beer’ shampoo. After getting his hair shampooed by the women ‘like a man’, he goes on to say that the beer makes hair shiny and bouncy.
Go crazy shopping! Storyboard: Here’s a funny take on shopping and shopaholics. The TVC showcases a situation where in the middle of a bank Robbery, a fashion conscious female staff member is seen talking to her female colleague about shoes & dresses available on Jabong.com. It represents the strong fashion connect among shoppers. While the robbery is on, Jabong.com’s delivery boy is seen entering the bank premises. The sight of the Jabong.com delivery boy, along with Jabong.com boxes, generates such high curiosity amongst the hostage girls that they free themselves forgetting their surroundings and everyone is seen rushing towards the delivery boy screaming.
PaRK aVeNue BeeR SHamPoo
Creative Agency: Publicis South Asia
Ye cheese badi hai mast mast! Creative Agency: McCann Erickson, India
TVC
Rationale: Jabong wanted to reinstate the fact that they are the best premium one-stop fashion destination today. This commercial brings out the enthusiasm and passion for shopping. It highlights how with just one click, shoppers have access to more than 1000 brands and over 75000 products on the portal. As a conscious and continuous endeavor, the new campaign focuses on shopaholics in the true sense. n
Rationale: Park Avenue Beer Shampoo has created a path-breaking category in men’s hair care segment by launching the first-ever shampoo for men in India. Beer is associated with shiny, smooth and bouncy hair and thus is the main ingredient in the shampoo. Men are not keen investors in hair care products and Park Avenue tapped this opportunity to create a category for them by introducing Beer Shampoo, designed specifically to meet the hair care needs of a man. n
7
BUZZ TVC
digital
Tata Nano
Celebrate Awesomeness Creative Agency: Rediffusion Y&R, India complete music album. Storyboard: The TVC showcases the colourful world of the Nano; whether it’s the gutsy Masaba Gupta whose quirky pop prints stand out from the crowd, the beautypageant-winner-turned-entrepreneurturned-actor Sarah Jane Dias or the riveting street magician Ugesh Sarkar, everyone embodies the spirit of ‘awesomeness’ in the film. The jingle almost makes the film a
Rationale: The TVC validates the new edition Nano as a smart, peppy, and fun car with bold and bravely uncompromising attitude. Striking a chord with the youth, the communication is directed towards the spirit of living life on your own terms and chooses the young achievers from different genres sharing the brand’s attitude of doing things differently. n
Fanta
Play Fanta! Creative Agency: Ogilvy & Mather, New York Approach: The graphic novel dubbed “Saving the Source” has a central narrative, which tells the story of a group of teens – Fanta’s globally recognized and loved cast of characters: Todd, Tristan, Andy, Floyd, Lola, Maude, Gigi and the Lhava Twins - each representing a vital aspect of Play - who embark on a mission to save Play after it mysteriously disappears from their town. Rationale: Fanta has launched its first ever Interactive Graphic Novel featuring the animated Fanta crew. The campaign is focused on driv-
TVC
Amulya
Making Mornings Special Creative Agency: Draftfcb+Ulka, India
TVC
Fiat Linea
Admiration Guaranteed
Creative Agency: Ogilvy & Mather, Mumbai Storyboard: The TVC opens with two friends driving around in the Fiat Linea. While one of them starts to tell the other about how fancy cars in America come equipped with smart features like automatic headlights when it becomes dark, the car passes through a tunnel and the headlights turn on. The friend is impressed but continues to boast about American cars and their automatic rain-sensing windshield wipers and auto call receiving facility, before realising that the car he is driv-
8
ing in has all of those and more. The friend finally realises that the Fiat Linea is every bit as fancy and equipped as any world class car. Rationale: The TVC highlights the enviable features of the Linea, like rain-sensing wipers, automatic lights, best in class ground clearance, Blue & Me with voice commands, dual stage front airbags, and advanced multi-jet and T-jet engines. The new Linea TVC leaves the viewer in awe of the C+ segment’s redefining features and technologically superior engine. n
Storyboard: The TVC shows a couple pampering each other over morning breakfast. But the taste of tea makes them forget the mutual love momentarily. The TVC will be supported by a print campaign in key regional markets.
Rationale: Being one of the largest Dairy Whitener brands in India, Amulya aimed to rejuvenate the brand connect with the customers. The contemporary version of the advertisement is designed to occupy the customer’s mind space. The new TVC aims at augmenting brand salience and tries to connect with the youth. n
Pitch | Sep-Oct 2013
activation
Heineken
Voice in their head Creative Agency: Creative Agency: Wieden + Kennedy Storyboard: Heineken celebrated its second anniversary by engaging with the customers in a unique way at the point of sale. The brand provided its customers with a different beer buying experience by incepting a ‘voice in their head’ urging them to grab the beer. The ing teen engagement over a long term through the Graphic Novel and its in-built games. Fanta’s media strategy looks at attracting teens from popular social hangouts, portals and gaming and animation arenas to an immersive brand experience that travels effortlessly between the desktop and mobile web. n
TVC
Fevicol
Judh Jayein Tyohaar Pe Creative Agency: Ogilvy & Mather, Mumbai Storyboard: The advertisement kicks off with two animated elephant characters running playfully. They jump and leap trying to abscond secretly. What follows in another frame, is the sister elephant holding a rakhi looking for her two elephant brothers in exasperation. The elephant brothers watch impishly and then go back to form the Fevicol logo (trademarked for Fevicol – The Ultimate Adhesive). Rationale: Keeping in line with the use of Fevicol mascots – The Elephants, the TVC communicates more than just the functional benefit of the product. An interesting route of animation advertising has brought its elephants to life. The wit and humor quotient is maintained in typical Fevicol way. The value of the advertisement lies in its simplicity to convey the core product proposition and has hit the nail on the head. n
brand executed the concept by using directional speakers, which emit a high frequency beam of sound at the subjects – becoming a voice in their head, a voice that no one else could hear. Since it was a focused beam of sound, only the subject could hear it. The speakers were
TVC
GreenDust
camouflaged with the surroundings and left the user in focus wondering where the sound was coming from. Rationale: Today’s sales and marketing environment calls for being more personal, engaging and meaningful to the consumer. As long as your brand is present in your consumer’s mind, you are in the reckoning. Heineken adopted
a quirky experiential marketing tool reminding its consumers about the positioning of the brand – innovative and cool. The campaign aims at driving brand loyalty and maximising awareness through its brilliant execution. n
Smart Alternative
Creative Agency: Lauburu Marketing and Advertising Consultants, Mumbai Rationale: Greendust pioneers in introducing the concept of refurbished factory second electronics in India. Demystifying the term ‘refurbished’, it is encouraging users to keep a more open mind towards refurbished
products for their own benefit. The brand focuses on eliminating the confusion between ‘used’ goods and the refurbished ones. GreenDust Value Added Centers (VAC) and stringent 50-point quality check make the offering trustworthy.
Storyboard: The TVC features Vinay Pathak, the Bollywood actor, in a double role. One as a doubting, sceptical goofball who views big discounts on electronic products as questionable. Probably modelled after a lot of us, he tries his very best to create mistrust in the mind of his brother (Vinay, again) only to
be eventually rapped on his knuckles for his ignorance. Vinay Pathak’s down-to-earth, no-nonsense and street-smart image is in sync with the image of the brand. n Compiled by Gunjan Verma -gunjan.verma@exchange4media.com
Pitch | Sep-Oct 2013
9
INTERVIEW PRASUN BASU
Making a brand
meaningfully different W
hat are the three qualities that make people buy a branded product? How can a brand break through the clutter? Questions like these have plagued marketers for a long time. Millward Brown, the leading global research agency has introduced Brand Performance Programmes, a suite of in-market brand performance measurement solutions based on the company’s “Meaningfully Different Framework”. The new solution is based on the key new learning about how successful brands develop meaning, differentiate themselves and create salience. In a conversation with Rashi Bisaria of Pitch, Prasun Basu, Managing Director, South Asia Region elaborated on the “meaningfully different framework” and the three qualities that ensure financial success for brands.
Our findings revealed that meaningfully different brands are stronger. They capture five times more volume, command a 13 per cent price premium and are four times more likely to grow value share during the next 12 months
Framework- helps you to shape the intangible stuff i.e. the ideas and memories and feelings in the heads and hearts of consumers, in the right way, so that brands make money. To create value from those mental associations, marketers must make the associated product or service more salient, more interesting or more compelling than the alternatives. They must make the brand meaningfully different in some way because people are predisposed to buy brands when they believe them to be meaningful. We have found that there are three
Can you explain what this meaningfully different framework is and how can it be used by marketers? Marketers have long struggled to manage brand equity to drive financial growth for their organisations. In our understanding of brands, it is often the intangible nature of brands- the ideas, the memories, the feelings evoked every time someone thinks of the brand- that makes marketing it so exciting. It is this aspect that can make it so difficult to measure the ‘equity’ or true strength of brands in a way that allows all the different shapes and sizes of brand associations. Millward Brown’s equity measurement system- the Meaningfully Different
10 10
| June 2013 | Sep-Oct Pitch Pitch 2013
qualities of brands that make people buy more and pay more for them. Successful brands are Meaningful, Different and Salient. Drawing on the learning from thousands of brand equity studies as well as a recent, ground-breaking pilot that linked neuroscience and survey data to consumer shopping behavior, Millward Brown has established that financial success for brands depend on all three of these qualities. Our findings revealed that meaningfully different brands are stronger. They capture five times more volume, command a 13 per cent price premium and are four times more likely to grow value share during the next 12 months, compared to brands lacking meaningful difference. Using this learning, we have developed the next generation of brand metrics – Power, Premium and Potential – to provide brand owners with guidance on investment and brand strategy to deliver financial growth. All three (Power, Premium and Potential) are validated to in-market results. The Meaningfully Different Framework, launched early this year, is a simple but powerful brand equity currency that is integrated across all our research. The simple scores summarise a brand’s equity and relate directly to its real world financial and business outcomes all in a fast, efficient way.
Pitch | Sep-Oct June 2013 2013
11
INTERVIEW PRASUN BASU What are these meaningfully different brands? Can you define these brands or the parameters with which we judge them? The key question to ask is whether your brand is perceived to be different enough given its competitive context. Our analysis of strong brands show that the strongest brands are those which: Have a Meaning in the consumer’s life either through a strong functional need they fulfill well or through a strong emotional connect built over time • are Salient in being usually the ones that come to mind quickest when the need arises. • and being Different in setting themselves apart from the category, by offering something others don’t –intangible or tangible– and by leading the way We have found that brands can choose to be strong on one or all of these dimensions and still be strong but can maximise financial value growth only by leveraging ALL three facets For instance, from our analysis in India, we know that Samsung drives with speed and innovation and stands out by being Different; Fair & lovely is Salient with a brand promise that is direct and functional. However, Airtel connects on all three dimensions through functional superiority (network) and through leadership in innovation (Airtel money, pack sharing). •
How will this framework help marketers in stronger brand positioning? First of all, a marketer needs to have absolute clarity about what makes his brand meaningfully different from competition. Our framework helps marketers understand the long-term levers that will build brand equity, and thus brand value and base sales. The Diagnostic framework baked into our model, uses both generalized and category specific imagery, to help marketers understand how brand
12 12
associations link together and relate to our equity metrics. This also points to specific levers we must activate for the brand to be meaningful or different, to drive the brand proposition. There are, of course, many other influences on purchase volumes and on the price people end up paying for brands, such as availability, packaging, promotions etc. The framework decodes how predisposition and in-market activation work together which determines whether someone buys the brand or not. It also allows marketers to understand which of the in-market levers are most effective for his brand and the best way to leverage volume share and/or to justify your price point now and in the future. How can brands create financial value by positioning themselves differently? Can you give some examples?
of how brands create financial value by positioning themselves differently. A quarter of the brands in our BrandZ™ Top 100 this year are banks (regional or global), insurance companies or credit cards. Even in an ‘Attention Economy’ like India, while its important for brands to be salient, the endurance to stay in the game comes from a healthy balance on being Different, and perhaps over time being meaningful. ICICI Bank which ranks in our BrandZ™ Top 100 is a case in point. Even in banking, a global brand implies a greater sense of status than a local Indian brand. In practice, however, people in smaller, rural markets may find that the Indian bank brand understands their needs more deeply. Government regulations may provide regulatory protection for the local brand.Even so, ICICI, is uniquely Different, being innovative,
Meaningful
Brand Associations
Different
Salient Brands stand to gain even more when they offer points of difference that are truly important, even if the importance is only temporary or fleeting. Financial brands are a good example
A quarter of the brands in our BrandZ™ Top 100 this year are banks (regional or global), insurance companies or credit cards
Barriers Facilitators
Brand Predisposition
In-market Barriers
a first-mover, and aggressive. It brings together different propositions - ‘Trust’ through Indianness/ size and ‘Flexibility’ of a private bank. Brands could also create financial value by repositioning and reinventing themselves over time. Airtel (which again features in our BrandZ™ Top 100), has remained strong even in a highly competitive market driven by regulatory challenges and issues. From servicing the most basic communication needs to delivering complex services, Airtel has remained steady in these trying times, with repositioning itself over time as a friendly and youth-focused brand. n -rashi.bisaria@exchange4media.com
| June 2013 | Sep-Oct Pitch Pitch 2013
JOBS
JOBS
Jobs from Alamy Requires: Account Manager – Business Development for their Mumbai & Delhi location for details log on to www.exchange4media.com PostBox Communications Requires: Business Development Executive for their Mumbai location for details log on to www.exchange4media.com IBD Requires: Account Executive, Senior Client Servicing Executive for their Mumbai, location for details log on to www.exchange4media.com BBC World Service Requires: Producer for their Delhi location For details log on to www.exchange4media.com Radio City 91.1FM Requires: Producer Key Account Manager/Assistant Manager for their Ahmedabad/ Mumbai/ Delhi/Bangalore location For details log on to www.exchange4media.com
Pitch | Aug-Sep June 2013 2013
OPTIONS MEDIA Requires: Sr. Executives/ Asst Manager/ Managers Business Head for their Chennai/Bangalore/Hyderabad/ Kochi/Delhi/Mumbai location For details log on to www.exchange4media.com Nailbites Requires: Art Director for their Delhi location For details log on to www.exchange4media.com Gozoop Requires: Sr. Business Development Manager for their Mumbai, Delhi, Dubai(Mumbai based) location For details log on to www.exchange4media.com Eggfirst Requires: Sr. Visualizer for their Mumbai location For details log on to www.exchange4media.com Loginworks Softwares Requires: Senior Manager, Marketing
Manager, Marketing for their Ghazibad Location For details log on to www.exchange4media.com log5communications Requires: Senior Visualizer for their Mumbai Location For details log on to www.exchange4media.com Explocity Private Limited Requires: Executive – Sales for their Bangalore Location For details log on to www.exchange4media.com Thompson Nepal Pvt. Ltd. Requires: Sr. Art Director Art Director for their Kathmandu/Nepal Location For details log on to www.exchange4media.com Young Requires: Sr. Copy Writer for their Mumbai Location For details log on to www.exchange4media.com
13
For Advertising on Jobs & Career Mail to : (Delhi) abdulla@exchange4media.com or Call +91 9871609348 (Mumbai) emily.boral@exchange4media.com or Call +91 9967791877
COVER STORY
14 14
Pitch | Sep-Oct 2013
What hope does the festival season hold out for brands? A close look at the coping strategies for marketers. By Rashi Basaria
R
agini and her husband of 5 years have been meaning to purchase a washing machine for some months now. But they have deferred the purchase till the onset of the festival
Pitch | Sep-Oct 2013
season when they hope to get the best deal. The current inflationary trends leave them with little or no savings at the end of the month to spend on such household purchases. It is not just cou-
ples like them staying in metropolitan India who look forward to the festive fervour and best deals but the whole of India with its numerous festivals waits for the onset of festivities to benefit
15
COVER STORY from the choicest wares at best prices. Over the years, marketers have tracked the consumer’s buying patterns during the time of festivals like Onam, Eid, Diwali, Durga Puja, Beehu and the rest when purse strings are loosened and the shopping frenzy takes over. The festival season begins with Onam in September in the South when retailers are on their toes to cater to buyers and their extravagant needs. This time though, it’s an acid test for retailers who will need to woo buyers in the midst of the economic downturn and depreciating rupee. Innovation in marketing is the need of the hour for marketers who will need to use every trick in the book to lure potential buyers. Equated Monthly Instalment schemes and cash back offers are some of the ways by which marketers are hoping to lure customers. Onam has set the stage for marketers and Consumer durable goods companies have made the EMI schemes simpler. Multi-brand retailers of consumer durable brands are upbeat despite the slowdown. Commenting on festival sales, Ajit Joshi, MD and CEO , Infiniti Retail Ltd says, “Croma witnessed a very positive response from customers across the country on independence day. We are also preparing and looking forward to a good festive season. Our customers are gearing up for the festive season and we
“At Croma we have introduced the concept of Universal Exchange where consumers can exchange any old gadget for a new one” Ajit Joshi MD and CEO , Infiniti Retail Ltd are planning special offers to provide great deals for the discerning ones. Croma is providing attractive finance offers with multiple partners across our entire product portfolio to suit their budget.” Another method retailers use during this time - the exchange offer. Festivals are times to ring out the old and ring in the new, and unique exchange offers that are eye-catching and sensible appeal to the informed consumer. “Many customers want
to exchange their electronic goods and we offer them very attractive exchange prices during the festival months. At Croma we have introduced the concept of Universal Exchange where consumers can exchange any old gadget for a new one. It need not be a TV in exchange for a TV,” adds Joshi. Now who wouldn’t appreciate a deal like that one. Apart from the “deal-seeking” mindset, consumers purchase during the festival season for various reasons. Working professionals get Diwali bonuses and plan their household purchases during this time. In India festivals are considered auspicious occasions for making important purchases and the air of festivity lends an added charm to the phenomenon of shopping. But the biggest reason for the increase in footfalls in stores can be attributed to the mind of the clever marketer who creates the environment for purchases to happen. These are occasions for
PANASONIC’S OFFERS FOR THE FESTIVAL SEASON On purchase of Viera TVs, the company offers • 3 years warranty on all TVs • EMI offers on all 32 inches and bigger LED and Plasma TVs • Assured gifts like a free Benetton Bag on purchase of 29 inch LED TV • Free Microlab Speakers on purchase of select models of 39 inch LED TV 16 16
advertisers and marketers to get close to the consumer, understand his psyche and connect with him. According to experts freebies and offers give an advantage to the brands. Prashant Mishra, Professor, Marketing, IIM Calcutta explains,
Pitch | Sep-Oct 2013 Pitch | Sep-Oct 2013
Companies such as LG, Samsung, Sony and Panasonic are looking forward to a 20-30 per cent growth in sales during the festival season upload the picture of a living space of their home they wanted transformed, on the brand’s facebook page along with the reason for wanting the makeover. The lucky winners would be treated to a free makeover by a panel of designers. Whether it was the earlier campaign of “gift a transformation” or the current “upload and transform” campaign, Godrej In• It helps build a strong brand terio caught the pulse of the consumer at the right time. image Godrej has also come out • Brands get a chance to with some “scratch and win” demonstrate their innovation offers for the festival season and Godrej is expecting the • Emotional purchases boost sales to spiral up because of sales these offers. Bedraj Tripathy, Senior General Manager, Marketing, Godrej Interio is hopeful “Impact of offers can be evaluated like where sales are concerned, “The festhis - presence of a discount might or tive periods are good sale periods for might not help your business, but a us. Any consumer promotion during company with nothing to offer in terms this time does well. There is excitement of discounts or goodies is more likely coming in the form of a scratch and to suffer. A marketer needs to come up win promotion. This has fetched us with innovative and engaging deals to take advantage of this season even after it is over.” It is also the time for people to upgrade and renovate their living spaces and brands have tapped this behavioural pattern over the years to lure them. The festive season is an opportune time for a makeover and if one can get it done for free, nothing could be better than that. Godrej Interio decided to announce season two of its “Upload and Transform” digital campaign just before the advent of the festive season. It was a contest that could win the consumer free transformations of their living spaces. One simply had to
Advantages of festival marketing for Brands
high footfalls and conversions and coming from Godrej Interio, the brand, people see it as a real offer.” The Scratch and win offer is a pan India offer and Godrej is quite hopeful about its success. “The scratch and win offer will see at least 20-35 customers winning free furniture. Apart from them, at least 200 customers will get a flat 50 per cent off on furniture and around 1000 will receive a 25 per cent discount. Those that do not win these will definitely get at least a 10-24 per cent discount,” adds Tripathy. Top consumer durable companies have kept aggressive sales targets for this season and hope to follow them through with the help of freebies and offers. Companies such as LG, Samsung, Sony and Panasonic are looking forward to a 20-30 per cent growth in sales this year over last year, during the festival season. The Japanese multinational Panasonic has already achieved a 20 per cent growth in sales as compared to last year. Commenting on its performance, Manish Sharma, Managing Director, Panasonic India says, “Starting with Onam, Panasonic India has already achieved its target of ` 125
Pitch | Sep-Oct 2013
17
Pitch | Sep-Oct 2013
17
COVER STORY
Myntra’s festival tales
A
favourite among the young under-30 crowd, Myntra.com has earned its glory through smart strategising and efficient delivery. It pegs itself as India’s largest online fashion and lifestyle store and has since its inception in 2007 tried to gain the largest share of the e-commerce pie. It is comfortably positioned now as one of the top ecommerce sites in the country for apparel, shoes and accessories. The approaching festival season which starts with Onam and peaks with Diwali and then Christmas, has not left this portal untouched. Myntra is confident about its sales during the festive season, not bothering about the current slowdown. According to Ashutosh Lawania, the co-founder and Head, marketing and sales, Myntra, the festival season always sees a sharp rise in sales, the current economic conditions notwithstanding. The trends to purchase and gift, peak around Diwali and there is always a 15-25 per cent increase in sales no matter what the circumstances might be. Shoppers have a greater propensity to purchase during the joyful period of festivity and Myntra sees the basket size of purchases go up on the site. Till now the traffic to Myntra comprises mostly of young men usually in their first jobs who indulge in some online retail therapy, but Myntra has plans to expand its target demographic and reach out to a higher age group. It is trying to attract the 40 plus shopper who has more purchasing power and can buy some of the premium category products that Myntra is hoping to feature on the site. The overall Marketing spends of the brand have gone down and the brand is targeting consumers in the tier two and three cities. Lawania explained how Myntra has started experimenting in smaller towns . It has used hoarding in front of malls, undertaken coupon activities, TV campaigns during movie breaks in multiplexes and other such activities to attract the small town buyer. Myntra is also banking on digital campaigns to reach out to its target age group.
18 18
“Starting with Onam, Panasonic India has already achieved its target of ` 125 crore in Kerala” Manish Sharma Managing Director, Panasonic India crore in Kerala. Panasonic Viera Flat Panel Displays have done extremely well with 30 per cent growth in Cochin. Appliances as a segment did not do very well across the industry, however, Panasonic with its whole range of washing machines did superbly well.” The company has rolled out a slew of attractive offers closer to Durga Puja in eastern India.
Dress your best for the festivals According to the Apparel Export Promotion Council (AEPC), the apparel market is buoyant and the exports are likely to go up from ` 780 billion to ` 1000 billion in the next two years. But the manufacturing cost is also going up due to the depreciation of the rupee. Though the production cost is going up, apparel makers are careful not to pass it on to the consumers and that is making a differ-
Pitch | Sep-Oct 2013 Pitch | Sep-Oct 2013
ence. Brands are hoping that the festive season will report double-digit growth rate over last year. Brands are banking on big ticket sales to lure customers to the showrooms. Sanjay Bindra, Co-Founder of Biba, a women’s apparel brand, explains, “The market has pushed all players to cut down profits by giving huge discounts. Our discounts are looking to go up by 6 per cent this season. We will manage to get footfalls but the discounts would mean minimal profits for us. These days, flat 50 per cent discount is something cus-
The car market witnessed a rise in sales in August for the first time in 10 months and is hoping that the festival season might give a shot in the arm to sales strategy for the festival season when new launches and special discounts might boost sales. Ironically, there will be a price rise across models from October 1st for Hyundai, General Motors, and Tata Motors. The price rise has been put in place to cope with the rupee depreciation and increasing input costs.
Honda’s Amaze and Ford’s EcoSport have kept the demand up for the two companies and the car makers are trying to make the best of the hype around these new launches. Honda has been trying to maximise the production of Amaze to speed up the deliveries and hasten the purchase process. The car market witnessed a rise in sales in August for the first time in 10 months and is hoping that the festival season might give a shot in the arm to sales. Some new launches have created a buzz in the market but marketers are doubtful if the festive season can bring about a change in fortunes.
Bargain hunters get the best deals
tomers take for granted. It has become a vicious circle as people just wait for the best discounts during the festival season.” So how is Bindra going to ensure profits this time around? “We plan to bring in the crowds through the sale boards and give them juice in the form of fresh arrivals. Fresh arrivals can hook the customers to your brand and generate good revenue as well,” he replies.
Automobile Sector has little hope from the festival season It has been the most challenging year for the automobile industry in a decade and car makers are looking at various ways to face the tough economic conditions. In addition, the sky rocketing fuel prices have only worsened the current sentiment. Marketers are busy planning their
“The festive periods are good sale periods for us. Any consumer promotion during this time does well” Bedraj Tripathy Senior General Manager, Marketing, Godrej Interio
Considering the current economic climate, consumers are hunting for the best deals and this is where e-commerce sites stand to benefit. Sites like Myntra, Jabong, Yebhi, etc are always on the lookout for regular buyers and they get them by offering attractive deals. This gets amplified during festivals when the deals get bigger and better resulting in more traffic. The number of internet users in India stands at 150 million as of December 2012. This makes India the third largest internet user in the world. According to Industry body Assocham there has been a 65 per cent increase in online shopping over last year during the festival season. Will the festival season turn the tables for brands that have been struggling to make profits? Will the Indian shopper enter the shops in large numbers and contribute to huge purchases? Only time will tell which marketing methods work and which don’t. For now, marketers can only plan to make the most of the festival months to make up for the slump in sales. -rashi.bisaria@exchange4media.com
Pitch | Sep-Oct 2013
19
Pitch | Sep-Oct 2013
19
FEATURE COMPETING FOR EYE-BALLS
Are Festivals the right time to release your film? Shahrukh, Salman and Aamir have been vying for the festival slot for years now and the audience keep a lookout for the big ticket releases at this time of the year By Ankur Gaurav
S
elling a movie to a heterogeneous Indian audience needs some clever marketing strategies. As the income levels of people increase and also the number of multiplexes, the number of movie prints, and the viewing options available to film goers, filmmakers have to up their marketing budgets to get their act right. Generating hype before the release, and tickling the curiosity of people in different ways have become part of the course. One of the major factors that play a huge part in the success of a movie is the time of the release. Eid and Diwali have been the most sought after release dates for long but film marketers have started exploring other festivals as well. Come festival season and the
20 20
battle lines get drawn. Shahrukh, Salman and Aamir have been vying for the festival slot for years now and the audiences keep a lookout for the big ticket releases at this time of the year. With only 52 weeks in a year and double the number of releases waiting to happen, filmmakers plan the pre-production and post production according to the festival season. Speaking about the process of selection of a release date, Devika Shroff, Marketing Consultant for Krrish 3 explains, “Most producers have dates in mind, when making films, but it
all depends on whether the film is ready, and what else in releasing around then. If the market is not cluttered, and the film is ready, then one sets a release date.” It’s a busy time for marketers as they plan to get a share of the festival pie. Some of the biggest hits of the Indian film industry in the past have been recorded during the vibrant festival season.
A peek into the past Bollywood found its new success mantra when increasingly festival releases started
Eid and Diwali have been the most sought after release dates for long but film marketers have started exploring other festivals as well
| April-May | Sep-Oct2013 Pitch Pitch 2013
crossing the 100 crore mark. If we look at the last two years and the business done by the Indian Film Industry, there were over 100 releases in 2011. From the top ten money earners, the top three were released during the festival time. Similarly, in 2012 when the much awaited SalmanKatrina starrer Ek Tha Tiger raked in 198 crores bolstered by the long weekend. It was a jackpot for Yash Raj films. Film Trade Analyst, Vinod Mirani says, “If a movie releases during a festival and it happens to be an extended weekend, nothing can be better for the marketer than this and he must harvest this opportunity. If a film performs well during a weekday, the weekend is always there to boost the sales as weekend business is most important nowadays.” With big banner festival releases becoming a norm, filmmakers and marketers have become adept at whipping up the necessary hype before the release. The Shahrukh Khan starrer Chennai Express is a case in point. Red Chillies Entertainment did not leave any stone unturned in spreading the word about the film. What helped the film even more was the lineup of important festivals like Eid, Raksha Bandhan and Independence Day was an
2011
2012
This year’s Diwali release is booked by Rakesh Roshan’s Krrish 3 starring none other than Hrithik Roshan who reprises his unforgettable performance added advantage. Special discounts during Rakshabandhan in the second week post release were just one of the gimmicks tried out to attract eyeballs. The film has
“Diwali is one of the best times to release a film in India. Most people have received bonuses. People want to go out and splurge.” Devika Shroff Marketing Consultant, Krissh 3
Film
Business
Festival
Yamla Pagla Deewana Dil to bachha hai ji Bodyguard Aarakshan Rascals Ra.One
55 crore 28 crore 142 crores 41 crores 35 crores 118 crores
Lohri Republic day EID Independence day Dusshera Diwali
Film
Business
Festival
Agneepath Ek tha tiger Jab tak hai jaan & Son of Sardar Dabangg 2
123 crores 198 crores
Republic day Eid
225 crrores 158 crores
Diwali Christmas
Pitch | Sep-Oct 2013
turned out to be one of the biggest grosser of history, having earned over ` 225 crores. This year’s Diwali release is booked by Rakesh Roshan’s Krrish 3 starring none other than Hrithik Roshan who reprises his unforgettable performance. The movie is expected to join the 100 crore club. Speaking about their plans, Devika Shroff, Marketing Consultant for Krrish 3 says, “Diwali is one of the best times to release a film in India. Most people have received bonuses. Schools, Offices & Colleges are closed for at least 3 days. People want to go out and splurge.” Christmas is another occasion when marketers try to cash in on the festive spirit of celebration. For Bollywood, this Christmas will be special yet again as the much talked about Aamir Khan Starrer Dhoom 3 will hit theatres. Once Upon A Time In Mumbai Dobaara had also decided to take the festive route but was overshadowed by Chennai Express and failed to live up to expectations. Commenting on the clash Shroff says, “There is a spill-over effect. It pulls people, as they have more choice. if they don’t get a ticket for one film they get it for another film. But sometimes this doesn’t work. The viewer is very sure of what he wants and if the tickets for their first choice are not available, they don’t necessarily buy tickets for their second choice.” The Akshay Kumar starrer could not benefit from the spill-over effect and Once Upon A Time In Mumbai Dobaara managed to gross only ` 55 crore.
Not just Eid and Diwali The trend is catching up among film marketers as they plan their movies around other festivals as well, but the choice for releasing a movie at a particular time is still a perplexing question. National Holidays have also become appropriate occasions for releases as they do not use up people’s precious time for festival celebrations and rituals. Speaking about other festivals
21
FEATURE COMPETING FOR EYE-BALLS pulling in audiences Renuad Palliere, CEO, International Business, PVR Ltd says, “Apart from Eid and Diwali which are considered to be the prime festivals, PVR multiplexes experience a massive audience rush during national holidays like Republic Day, Independence Day, Gandhi Jayanti, Lohri, Onam and Christmas.”To top it all, if the film is a true entertainer, the buzz created through word- of- mouth during the week is enough to ensure a blockbuster weekend. When Alok Tandon, CEO, Inox Leisure Limited was asked about festivals bring-
ing in business for him, he said, “In India we love our festivals as much as we love our movies. Movie Producers and Distributors prefer to release their movies around festivals because of the festive atmosphere.”The trend has influenced the regional film industries as well. Tandon added, “We are expecting increased footfalls for the release of Mishor Rohoshyo (Bengali) during Durga Pooja and Attarintiki Daaredhi (Telugu) during Dussehra. People come out with families & friends to have a good time during festivities.”
Distributors and their strategy during festivals Movie marketers have stepped up efforts to promote movie watching during festivals by launching new offers, deals and other services. Palliere highlighted their plans for the upcoming festive season , “PVR is coming up with Royalty Cards, which is an innovative concept introduced by PVR to provide customers with an easy ticketing process and help them experience a luxurious movie watching experience at PVR Director’s Cut.” The card promises to make your movie watching experience
Chennai Express or Marketing Express?
S
o what happens when Bollywood’s two marketing champions collaborate to bring together a film packed with a trail of brand partnerships? The result is Chennai Express that entered the elite “Rs 200 crore club” because of the massive marketing blitz undertaken by its producers, majorly SRK who is known for marketing his films exceptionally. Apart from the conventional ways adopted by SRK, some out-of-the-box initiatives turned the film into a “marketing express’ for the audience. So, seeing Shah Rukh Khan on every TV channel and every possible medium at least earned him great profits if not for the audience (as the movie was not very well appreciated by the audience). Let us thank Mr. King Khan and Rohit Shetty for setting a great example of selling a film based only on marketing and taking it to a 200 crore club without a strong script. It is indeed a case study.
GAMING: we all know about how much SRK and Rohit Shetty are game addicts. It is one strategy that SRK has always been keen on even while promoting disasters like Ra.One. ‘Chennai Express’ game is
22 22
our very own Indian subway surfer. So a user can be SRK (at least in the game) and play the surfer game just the ‘Chennai’ way.
TIE-UPS: When a name like Shah Rukh Khan gives all his energies to the making of the film, no brand misses the train, this time literally. A trail of brand tie-ups were seen in the movie including, McDonald’s, Baskin Robbins, Videocon, Reliance Digital, Nokia, Lux, Lawman, Emami, Nerolac, Palam Sarees, Western Union and also Lovely professional university. Wondering, if half of the movie was anyways sponsored, it means more profits for the film crew!
A NEW RANGE OF SAREES: The most important part of the movie was Deepika Padukone’s look and character of playing a daughter to the South Indian Don. More than the movie, the audience was thrilled by the way Deepika portrayed her character. Who does not remember her ‘Bokwaas dictionary’ dialogue? The marketing experts could not let this opportunity slip away and so they launched the ‘Chennai Express’ collection, a new line of sarees with designs similar to the sarees worn by Deepika Padukone in the film. VISA TO SEVEN NEW COUNTRIES: Seems like Chennai Express managed to get a visa to seven new countries for release. SRK released
Pitch | Sep-Oct 2013
hassle free and special by giving discounts on each and every product purchased inside the PVR premises. Speaking about their other plans, Palliere said, “PVR plans to work on various promotional gimmicks around the most celebrated festival in India, Diwali. This year, the Diwali period will witness the release of one of the most anticipated films of Bollywood ‘Krrish 3’ in 3D. PVR plans to make the movie, the centre
his movie in seven new countries that included - Morocco, Germany, Switzerland, Austria, France, Peru and Israel and also in ten different languages - English, French, Spanish, Arabic, Ger-man, Hebrew, Dutch, Turkish and Malay apart from Hindi.
LEVERAGING THE ‘RAJNI-LUNGI’ CONNECT: Entering the territory of superstar Rajnikanth was no mean task. Our very own marketing expert, Bollywood King Khan was undeterred. The ‘Lungi dance’ was a hilarious take on Rajni’s style and persona. It provided rib-
Pitch | Sep-Oct 2013
of all promotions. The special edition of ‘Treat in the Box’ meal combo with Krrish 3 branding, the promotion will entitle the audience to enrol in a contest. The lucky winners will get exclusive movie merchandise, movie tickets, and the final lucky winner will get a return ticket for two to an international destination.” At Inox, audiences will be sur-
tickling fun for the north Indian audiences while keeping the south Indians engaged too. And yes, it was all in good spirits so no sentiments were hurt. As if the overdose of the film and the inimitable SRK was not enough, we saw him offer Combo tickets as a part of the Raksha Bandhan package, promoting the movie by BLABBERING about it at the IIFA awards, connecting with fans via a LIVE CHAT on Facebook and everything in the book to drive viewers to the halls to generate profit. Just as they say in the movie, “Never underestimate the power of a common man.”
prised to see the arrangements during the festival season this time. Tandon, not wanting to give away too much, simply said, “Various activities will take place including giving away of free movie merchandise, lucky draws, audience interactions in the lobby, decoration of our lobby amongst many others.” Competition among the distributors ramps up during this time of revelry. With most multiplexes offering something or the other, customers are ready to go the extra distance to enjoy a special offer at some multiplex. Commenting on the same, Mirani says, “Customers like to travel during the festivals and this is the time for the multiplexes to reach out to the audience, which would otherwise prefer to watch the movie at their nearest cinema hall. People are
“Various activities are planned like giving away of free movie merchandise, lucky draws, decoration of lobby during festivals” Alok Tandon CEO, Inox Leisure Limited travelling even to distant locations if something special is being offered. Festivals call for a family outing and this again brings in more audiences to theaters.”
Content is still King Although festivals can propel the movie towards success, it is ultimately a story well told that attracts people. Insiders of the business still maintain that Content is king. -ankur.gaurav.@exchange4media.com
23
FEATURE: WHAT’S INSIDE THAT GIFT?
ONLINE GIFTING A boon for brands The gifting companies, brands and social media platforms have teamed up to entirely change the face of gifting in the country By Ankur Gaurav
T
he idea of receiving a packet wrapped in colourful paper with ribbons and a stick-on card is stuff that dreams are made of. That delightful moment full of anticipation and surprise is what makes a gift so appealing. The tradition of gifting will never go out of style as long as civilization exists
but the process has undergone changes over the years. Gifting like most aspects of our lives has gone digital. In India, the gifting industry is on a boom, crossing over INR 12,000 crore mark in the year 2012. Online gifting including corporate gifting makes up a significant chunk in the above men-
tioned figure. The end of 2012 saw the emergence of numerous web portals that provided gifting solutions especially tailored for the corporate. Customisation has become the buzzword as most corporate gifts come embellished with the name of the receiver. Today’s corporates, unlike earlier, not only custom-
Marketing on Social While navigating Facebook’s gifting page, one can find the line saying ‘How can I partner with Facebook and have my product listed as a gift option?’ More than the customers feeling the delight, it’s the brands which are more excited about the gifting features on facebook and twitter. The social network’s integration into the marketing strategies of brands has opened an array of possibilities for the brands to remain visible on the personal space of its target group. Once you gift your friend using giftbig’s friend’s club feature, you and your friend’s facebook wall would display it. In this manner, Facebook facilitates free marketing for the brand whose voucher was purchased and also for giftbig. Brands have already started collaborating with social media to drive engagement and
24
ise stationery, but also a large number of other gift products including wooden wine boxes, playing card boxes, gift boxes, etc that are laser engraved. The competition has grown very swiftly and lately many of these gifting companies including giftbig.com and giftology have started using social networking websites to target customers. Giftology is a social gifting platform that helps you send a gift to the intended recipient on Facebook. It’s a great platform for brands as it helps generate store traffic, increase footfalls in physical stores and drive web traffic for the business. Giftbig.com specializes in gift cards and gift vouchers and for Corporates, it promises gifts customised to perfection. Giftex and Hourglass essentials are other companies that exclusively cater to the corporate. E-commerce is thriving in India based on rapid technological changes. The gifting companies, brands and social media platforms have teamed up to entirely change the face of gifting in the country. Speaking about the booming
In the digital age concept of vouchers has opened up immense possibilities and many unlikely brands have found their way into gift-option categories
“The overall industry will grow primarily due to the expansion of categories of products used for gifting” TP Pratap Co-founder, Giftbig.com
opportunities in the corporate gifting industry, TP Pratap, Co-founder, Giftbig.com said, “The industry depends a lot on the festival market and this year we are expecting to grow by 20-30 per cent. The overall industry will also grow primarily due to the expansion of categories of products used for gifting for example the new Café Coffee Day gift card. The brand has just entered the gifting phenomenon while it was not there some time back.”
Social media: The new gift box Group gifting offered by Badhai.in is one of the latest concepts in the market that allows people to invite friends to pool in their contributions online to give away a joint gift. The online voucher can be used at most of the retail chains and
Media sales. Jacob John, Brand Head, Louis Philippe, explained “We are exploring and creating new avenues to use social media as most of our potential customers and competitors are on the social web.” Giftology’s ‘start gifting’ is integrated with the facebook log in and they also offer free gift vouchers of brands like American Swan, Titan and many more. The free vouchers range between INR 100 to INR 500. Sanjay Bindra, Head Retail & CIO, BIBA India finds these free vouchers more effective than the flat 50 per cent discounts. He said, “Customers have started taking the discounts during end of season sale for granted, but these free vouchers are making them feel special when gifted and they are also making them show up in the stores to use the vouchers. It’s a healthy marketing tool for brands.” These vouchers have worked well for the new brands trying to break into the market. Anurag Rajpal,
Pitch | Sep-Oct 2013
CEO, Americna Swan commented on the same saying, “Everyone enjoys exercising their choice at the time of purchase and it helps lower the barrier to entry for a new brand. Most often potential customers need a ‘push’ to sample a new brand and introductory offers work very well in such instances.” Till some years back, the gifting options included cards, flowers, and chocolates but there has been a shift especially in the digital space. F & B industry brands like Nirula’s and Dominos have also become the digital age gifts. The concept of vouchers has opened up immense possibilities and many unlikely brands have found their way into gift-option categories.
25
FEATURE: WHAT’S INSIDE THAT GIFT?
also online shopping websites. Commenting on the digitization of gifts, Pratap said, “Most of our young consumers are spending huge amounts of time with their loved ones on facebook and twitter. With this idea in mind we came up with the friends club and Instagift applications incorporating social network into our gifting process.” According to seasoned industry players, organizations nowadays seek a touch of exclusivity to go with finesse and quality when it comes to gifting solutions. With several gift manufacturers entering the fray, there is a wide choice available to them. Even though there is increased competition, a definite rise in the demand augurs well for the industry. Products like innovative and useful travel gear are quite popular especially for senior executives since managers and marketing professionals are invariably on the go. Handcrafted decorative items, limited edition watches, writing instruments and leather accessories are equally popular. Friends club is a four step process
where you log in to your facebook account, select your friend you want to surprise, with a gift, buy the voucher or gifting card for him and post it on his/her wall. Commenting on the advantages, Pratap said, “This adds two distinct advantages for the customer as he need not know the address and secondly, he very well adds the surprise element to the gift.” Instagift is another gifting option which is instantly sent to the receiver’s mail box or facebook account which can be redeemed as and when the customer wants. Friends club is India’s first social –to-local marketing platform that has been integrated with Facebook. American Swan, a global lifestyle brand owned by the American Swan Lifestyle company that offers smart casuals to men and women online, has used the social channels to offer gift vouchers and make a niche for itself among customers. Anurag Rajpal, CEO, American Swan explained how the brand has taken off via social media channels, “We used Fa-
Social gifting is a new trend in gifting that allows people to collaborate on buying gifts. Not only does this new trend benefit consumers, but retailers as well
26
cebook offers as a tool to offer our fans an exclusive inaugural offer on their first purchase. Besides incentivizing our community on social channels through gift vouchers, we also reward registrations on our website through gift coupons which our customers can redeem on their purchases.” American Swan like many other brands has used gifting to spread a word about itself among potential customers. Giftology.com and various other gifting websites have also integrated facebook and twitter making gifting more convenient. Facebook on its part has started a gifting option of its own, called ‘gift a gift’ button. Facebook’s latest feature button allows you to send virtual as well as real gifts via notifications appearing on the profiles of the receiver.
Is social media changing the face of gifting in India? Most brands today, are leveraging social media as one of the ways to cater to the gifting needs of customers. Rajpal is certain about the growing popularity of gifting via social media as it facilitates collaboration, “Let’s face it, gifts can get expensive and we all wish to do justice to the occasion. So how can you get someone a gift they really want without breaking the bank? Collaborate! Social gifting is a new trend in gifting that allows people to collaborate on buying gifts. Not only does this new trend benefit consumers, but retailers as well. In the past, retailers have been unable to convert their social audience into customers. Today, people are more likely to shop around and participate in social gifting, thereby benefiting the brands too.” At the same time brands like Archies and Ferns n Petals are not letting physical gifting fade away any time soon. There are people for whom gifting is not about convenience but who revel in the act of choosing the gift in a brick n mortar store, getting it packed and presenting it to their loved ones. -ankur.gaurav@exchange4media.com
Pitch | Sep-Oct 2013
10 | SepOct, 2013 Volume X Issue
TERM
ISSUES
PRICE
WHAT YOU PAY
SAVING
One Year
12
Rs. 900
Rs. 675
Rs. 225 (25%)
Two Year
24
Rs. 1800
Rs. 1260
Rs. 540 (30%)
I will pay via:
Demand Draft
Cheque (At Par)
FESTIVAL MARKET IN G
Will the ma rke blitz for the ting festival season tur n around the fortun es of brands?
Cash
My Personal Details: Name: ............................................................. Address:
Residence
Office: ...............................................
...................................................................................................................................................................................... ...................................................................................................................................................................................... City: .............................................................................................................................................................................. PIN: ...................................................................... Phone (Residence): ..................................................................... Phone (Office): .................................................................. Email: .............................................................................. Please draw Demand Draft (Payable in New Delhi) in favour of: Adsert Web Solutions Private Limited B-20, Sector-57, Noida - 201301 Ph: 0120 4007700
Terms & Conditions
Rates and offer are valid in India only. Please allow 3-4 weeks time for the delivery of magazine through courier / registered post. Indicate your name and address on the reverse side of the DD. Offer is for a limited period. Publisher will not be responsible for delays or non delivery of the magazine. For subscription 4 related queries please contact: 0120-4007700 (Delhi); 022-26403303/3303/3309/3314/3316/3319 (Mumbai) or email: subscription@exchange4media.com
Pitch | Sep-Oct 2013
5
INTERVIEW PAWAN GADIA
Delivering
Smiles this season S
aying it with flowers has been the simplest way to express oneself for a long time. Ferns n Petals, India’s branded and one of the first organized flower retail chains was set up in 1994 to cash in on flowers and their ability to express emotions. Times have been changing and the way of gifting too and
Ferns N Petals has been quick to adapt. It began its online gifting portal in 2002 and there has been no looking back. In a conversation with Twishy of exchange4media., Pawan Gadia, CEO-Retail and E-Commerce, Ferns N Petals speaks about the opportunities during festivals, challenges of the digital age and how the idea of gifting has evolved over the years. Why are festivals a good time for a lifestyle floral boutique concept like Ferns N Petals? Festival is the time for celebrations, joy and for being merry. Ferns N Petals is in the business of delivering smiles. People who are far away from their loved ones love to express their emotions through a beautiful bunch of flowers. Ferns N Petals has been in the process of innovation and by the strength of our retail presence, we are able to deliver relevant gifts for occasions even on the last day unlike a courier company which takes at least 24 hours in shipping.
28
How have you made ‘Rakhi’ and ‘Eid’ shopping a festive event in itself? What are the innovative offerings during the festivals? On any occasion, we customize and create products which are distinctly niche and innovative and which suit the occasion. Like every year, this time too we had innovative offerings like Rakhi hampers and gifts and sweets for Eid which were available on www. fnp.com. For example, there were rakhi thalis with various options like rakhi with fruits, rakhis with chocolates, special cartoon rakhis for kids, and also rakhi for sister-in-laws. Every year we do different events or promotional activities around festivities. On special days like Valentine’s Day or Mother’s Day, we undertake mall activations or radio campaigns. We also tie up with various other brands to offer different kinds of discounts to our valuable customers. We have also collaborated with major banks of India who promote our offers to their customers and card holders. This has worked well for us. Can you tell us about the surge in sales during the festive season? How much is the contribution from tier-II and tier-III cities to the sales? We get a daily increase of 1000 per cent in
Pitch | Sep-Oct 2013
sales two weeks prior to any occasion. The tier II and tier III cities contribute almost 30 per cent to our top line. What is the current scenario of flower retailing in India and what percentage of the industry is shared by organised and unorganised players? The biggest challenge has always been the unorganised market. Achieving success was not easy while serving an unorganised market with untrained man power and an expensive retail space. Some time back, the mandis had local flowers only. There was very less scope for importing flowers from abroad. Moreover, there was no organised rental space and the concept of gifting flowers on occasions was almost non-existent. Also, the real challenge in building a business like this is in managing operations and the back-end. FNP shops need expert florists who can make a good bouquet. To the company’s disappointment, such florists are not readily available as there are no training facilities to that effect in India. FNP is the only branded retail chain in India The current percentage of organised players is only 10 per cent and the rest 90 per cent is in the unorganised space. What is the relevance of flowers in the age of digital gifting? Gifting flowers and delivering emotions through flowers can never get extinct. Flowers are still considered priceless, and can be given to anybody, on any occasion. The medium of buying flowers has undergone a change. Moreover, digital gifting gives you the scope to shop anytime while sitting in the comfort of your home. What are the efforts undertaken by Ferns N Petals on the digital platform to match the distinct needs of the new-age customer? Will there be new features on the site as well? We have upgraded our digital platform www. fnp.com to become more customer- friendly. It is very easy to search for products and there is better categorization of products to save the time and efforts of the online customer. You can order from an enormous range of gifts and flowers at every price point .
Pitch | Sep-Oct 2013
Gifting flowers and delivering emotions through flowers can never get extinct. Flowers are still considered priceless, and can be given to anybody, on any occasion
By October, we are launching a new ecommerce platform which will enable our customers to make customized bouquets, track the orders on google map and locate the delivery boy. Ferns N Petals has also started selling accessories to the likes of various e-commerce players. Do you think it is a smart move by your brand? As time passes, the tastes and preferences of consumers change. We have also experienced that our target consumers prefer to send soft toys, chocolates, gift items along with a bouquet. So we see a great potential to diversify into gifting items and it is indeed a smart move as we are getting more orders for combo deals. We are a gifting portal, and apart from flowers, cakes, soft toys, chocolates all of which are our forte, we are also adding items like wallets, perfumes, spa products , etc which provide a 360 degree experience to the customer. How do you handle competition from other players? We do not have any player as our competitor in the domestic market. The unorganised market is our biggest threat as the market is
huge and totally disordered. The nearest competitor in retail may be one-sixth of our size and in terms of ecommerce, it is even more insignificant. We are constantly on our toes for business reasons and are aggressively introducing new customer experiences. Do you smell new opportunities in the smaller towns as well? After seeing the positive response from tier II and tier III cities like Coimbatore ,Tirupati, Nellore, Sangli, Surat, Siliguri, Meerut, Tirupur, Gorakhpur, Raipur, Mysore, and Udaipur FNP is encouraged to concentrate more on these cities and explore multiple outlets. For example, recently we launched outlets in cities like Patna, Surat, Raipur, Bhubaneswar, Mangalore and Coimbatore. We plan to target extensively and open about 300 outlets by the end of 2014. What are your plans of expansion in the overseas market? We have an outlet in Kathmandu, and will have stores in Dubai and London too. We are also going to expand our footprint to other countries of South- East Asia. ď Ž -twishy.e4m@gmail.com
29
INTERVIEW KASHYAP VADAPALLI
A
s the aesthetic sensibilities of urban Indians improve and their sense of a home undergoes a transformation, it spells good times for the Indian home decor industry. Come festival season and this new found love for a tastefully done up home sees a fresh spurt among buyers who rush to their nearest home furnishings store to shop. Or do they? With various online home decor stores flooding the internet, the shopper does not even have to step out. The home decor and furnishing market is expected to grow at a CAGR of 8 per cent by value to reach ` 330 billion according to the “Indian home furnishing market forecast and opportunities, 2018”. The Industry is poised to flourish in the next five years. Pepperfry, an online furniture, home and living destination is one such web portal that provides
versed with the perks of online shopping and with the festive season approaching we are offering attractive discounts on Furniture, Décor, Furnishings and more. Our unparalleled selection of products across categories offers a rich variety to customers at various price points, so discounts do not necessarily attract loyal customers of Pepperfry; what brings them repeatedly is our unique merchandise curated by our team. From reaching out to home savvy Indian customer profiles on our 2 Lakh+ Facebook community, 2000+ followers on Twitter, serving great home related content through our Blog, reaching out to the readers of leading décor magazines and partnering with lifestyle TV shows on channels like NDTV, we are always exploring new marketing media to connect with the home savvy Indian shopper.
designs of coffee tables, 200+ styles of lamps, 50+ designs of mirrors and frames. Our team understands that the discerning Indian customer always looks for variety at the best price possible. With over 8 lakh registered customers pan India, we sell a furniture piece every 20 minutes, a home décor and furnishings product every 10 minutes. Pepperfry’s managed market place model enables us to showcase 40,000+ unique products in different categories at any given time. We work with close to 1000 merchants, small artisans, leading and niche brands across India; for many small artisans Pepperfry is their primary source of income. Pepperfry boasts of customers from over 1000 India cities. Globally, customers from 12 countries (USA, Switzerland, Russia, Greece, France, Canada and more) have bought amazing stuff for their homes from Pepper-
Time to upgrade and renovate a great shopping experience and follows a managed marketplace business model. Kashyap Vadapalli, the Chief Marketing Officer of Pepperfry.com spoke to Rashi Bisaria about the current state of the home decor market in India and its plans around the festival season. The festival season sees people doing up their homes and there is a heightened interest in home decor and furnishings. How is Pepperfry going to utilise this opportunity? What are the new ways you will be reaching out to customers and are there any new marketing strategies on the anvil? Pepperfry is the one stop shop for all home and living needs of the evolved Indian shopper. Our customers are well
How well is the ecommerce space for home decor and furnishings doing in India presently? The Home Décor market in India (which includes furnishings) is pegged at ` 1,200 billion. The sector is largely unorganized with leading brands, mid and small players in the mix. This gives a lot of scope for those who wish to connect with the 150 million internet savvy Indian population, 60 per cent of this internet population has grown to be ecommerce savvy. So the future looks bright. How does Pepperfry differentiate itself from other players in the online business? Our in-depth collection across categories is amazingly priced and high on design aesthetics. For example, we offer 120+
With over 8 lakh registered customers pan India, we sell a furniture piece every 20 minutes, a home décor and furnishings product every 10 minutes 30 30
fry. 50 per cent of Pepperfry customers are women. We continue to expand our logistics and supply chain network. From Rajasthan to Mizoram, Jharkhand, Karnataka, Maharashtra, Tamil Nadu, Gujarat and more Pepperfry furniture has been delivered everywhere. What is the business model you are using? Have you incorporated any of the ebay best practices? We are a managed marketplace which is an ideal platform for entrepreneurs who wish to sell their merchandise to millions of discerning customers. We currently work with close to a thousand merchant partners to showcase their design skills, craftsmanship and service orientation to customers across India and the world. For many small artisans, Pepperfry is their primary source of income. Managed marketplace enables us to standardize customer experience, as our in-house supply and logistics team takes
Pitch | Sep-Oct Aug-Sep2013 2013
care of packaging and carrying out quality checks at our Fulfilment Centres before the products are shipped via leading courier partners. Managed marketplace also helps us eliminate merchant partners who maintain irregularities in customer experience; this is implemented after routine warnings to our merchant partners to improve their product’s quality. Our leadership team comprises of eCommerce veterans so they are aware of the best practices of this industry. Any new promotional activities that Pepperfry is undertaking around this time? We are planning to launch a 360 media campaign focussed on our variety and design proposition in time for Diwali. Diwali across India is time for new beginnings across many Indian households.
Kashyap Vadapalli | Chief Marketing Officer, Pepperfry.com Apart from being a festival of lights, it is also the opportunity for activities such as moving into new houses, repainting or making-over houses/rooms, buying new and important items for the house from kitchen items to furniture to heavy electricals and electronics etc. In short, it is a festival where the focus is on the house/home. We think that in the context of home purchases especially for larger furniture items many online consumers [for books or fashion or electronics] are not yet considering buying from online players. We think there is an opportunity to speak to these consumers via various channels - TV, Radio, Outdoor, Print apart from our usual online channels. Our core-value proposition of unmatched variety, unique designs and fantastic savings will form the corner-stone of our messaging. ď Ž -rashi.bisaria@exchange4media.com
Pitch | Sep-Oct Aug-Sep2013 2013
31
KEY TRAITS OF A MARKETER
Marketers can
SAVE THE WORLD By Rashi Bisaria
K
eeping a hall full of savvy Indian marketers enthralled seems to come easy to Simon Clift, former Unilever Chief Marketing Officer, who was in Mumbai to attend the CMO League organised by the exchange4media group. Addressing a group of the top market-
environmental change, in whatever way they could. He strongly believes that by effecting changes in the consumer’s behaviour, global brands can make some difference, thereby positioning themselves as authentic and responsible in this fast changing world. Simon, who is also the
others. Explaining the relevance of purposeful positioning in these times, Simon stated, “Purpose with creativity can make a difference to the ROI”. He further cited the example of Dove and its campaign for real beauty and how it touched the heart of not only consumers but also the people working on the brand. Simon was responsible for Unilever’s personal care business, including brands such as Dove, Axe and Rexona during his long tenure with the company. Digital media and its importance to brands and marketing made up a huge share of Simon’s presentation. He cited examples of brands which had embraced social media and made it big without even a single advertisement on TV. Ben & Jerry’s ice cream was one of them. “We are only just beginning to see the impact of digital revolution on the industry”, he said as he explained how digital was set to change the relationship between companies and consumers. When asked about the two key
When asked about the two key attributes of a successful marketer, Simon promptly said, “authenticity and courage are the two most important characteristics”. Simon Clift
Former Unilever Chief Marketing officer
ing minds in the country, Simon touched upon almost all topics concerning marketers in the digital age. As expected, his presentation was replete with examples from the real world and the brand world, but what made his speech more compelling were the references to brands that have been able to bring about social and
32
chairman of Touch Branding and an Advisory Director for Effective Brands, took the audience on a journey down memory lane, citing various examples and sharing anecdotes to inspire marketers. He stressed the importance of differentiated advertising and spoke about how it takes courage to differentiate yourself from the
attributes of a successful marketer, Simon promptly said, “Authenticity and courage are the two most important characteristics.” Once again, he explained how these attributes, if imbibed by marketers, could result in some form of social and environmental change, and how brands should keep this aspect in mind when they position themselves. -rashi.bisaria@exchange4media.com
Pitch | Sep-Oct 2013
COLUMN
Rebranding Strategies for brands
T
Gayatri Shrikhande Writer and brand ideator, chlorophyll brand and communications consultancy gayatri@chlorophyll.in
his is not the first time someone’s said that just a new logo does not mean a new brand. But in today’s scenario, it is good to know that this is no longer a mere statement. More and more Indian brands understand that the word ‘rebranding’ cannot be used loosely and must symbolize a larger change in the idea of the brand. A couple of years ago, Airtel unveiled its new logo amidst much hype and debate. But the brand’s new look and feel didn’t stop there. “Jo tera hai woh mera hai” rang across the nation, and a while later, we were told “har ek friend, zaroori hota hai!”. With Rahman’s signature tune and a whole lot of youngsters prancing around in all its
advertisements, Airtel leaped from the ‘Express Yourself’ days to standing for a bright, friendship-driven brand with tons of services targeted at India’s college-going population. Asian Paints’ new logo was accompanied by an explanation of the ribbon-like formation which symbolizes the brand’s dynamism. What seemed like hollow words at first, actually drew attention to the fact that Asian Paints moved from being a paint solutions provider to being a decor and design guide to help the urban middle-class create its dream homes. The brand’s existent Colour Ideas store aimed to make the experience of buying paint for the home less boring. They even launched an exciting Facebook contest for Diwali, where fans of the page can
what is still missing from the rebranding strategies of many Indian brands, is the change reflected within the organization, not just in its products or services
add their friends to create a ‘Colour ki Lari’. The grand prize was a complete makeover for the winner’s home. And of course, there’s Old Spice. NFL player Isaiah Mustafa became a viral sensation when these videos first launched online in New York, signaling the start of new media in advertising. The videos got millions of hits and sales rose by 11 per cent in the 2010. And guess what? The Old Spice logo didn’t change. But what it meant sure did. From reminding users of their father or grandfather, the brand became young, humorous and very much in demand. However, what is still missing from the rebranding strategies of many Indian brands, is the change reflected within the organization, not just in its products or services. Through initiations, workshops and the involvement of top-management, it is possible to integrate the brand’s new philosophy within the company. So, that it can be the change it says it is. Till then, here’s to the beginning of beauty that isn’t just skin deep. n
The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch
Pitch | Sep-Oct 2013
33
RESEARCH: BRAND CONSUMER-CONNECT
Asian consumers have the strongest brand-consumer connect in the world Is the Asian consumer more dependent on brands or is he simply more emotional when it comes to brands he uses every day? By Ankur Gaurav
T
he Asian consumer has always appeared more attached to the brands he uses in daily life. A study conducted by the Havas Media group which connects human well being with brands at a business level has corroborated this observation. The research that included 700 brands, over 1,34,000 consumers in 23 countries gives an insight into the minds of consumers worldwide. Asia-Pacific has the strongest brandconsumer connect with 53 per cent people admitting that brands do improve their lifestyle. The same results accounted for just 28 and 29 per cent people in Europe and US admitting that brands help them improve their lifestyle.
“Brand-consumer connect is more relational in our country whereas it is more transactional in the western countries� Abraham Koshy Professor, Marketing, IIM Ahmedabad
34
Brand impact and loyalty is what marketers strive to create among consumers and the study reflects that in India several brands have been able to achieve it. At a global level people do not care if 73 per cent of brands disappeared the next day. Is the Asian consumer more dependent on brands or is he simply more emotional when it comes to brands he uses
every day? Dr. Abraham Koshy, Professor of Marketing, IIM Ahmedabad, gives two reasons for this consumer-connect, “I can figure out two reasons for such a result and difference between the brand-consumer connect, first being a stronger branding done by these brands and it is much more impactful in India and Indonesia and second reason is that brand-consumer connect is more rela-
Most people worldwide would not care if more than 73% brands disappeared tomorrow. Pitch | Sep-Oct 2013
TOP 10 BRANDS INDIA
In Asia people are SIX TIMES more attached to brands than in Western markets
Source: Havas Media
tional in our country whereas it is more transactional in the western countries. For example people buy soap because they like that soap but in the west people buy ‘soap’ only for utility and transactional needs. In India the objects are a part of the consumer’s life.” Several age-old brands have had a special place in the consumer’s life. Brands like Godrej, Lux, Tata, Cadbury’s and many more have grown with the Indian consumer who cannot imagine a life without them. Louis Philippe, another iconic brand has long been a statement of status and style for men and no Indian wardrobe is complete without a Louis Philippe product. Jacob John, Brand Head, Louis Philippe explained the reason for this dependence of Indians on brands, saying, “Countries
Pitch | Sep-Oct 2013
like China and India are still developing and the working class has the disposable income but does not have a lot of time to take care of their life. Brands satisfy their needs. For example, there is nobody who gets their clothes stitched, hence they depend on branded clothes and for the same
“Brands have been able to change the lifestyle of people specially in India” Jacob John Brand Head, Louis Philippe
reason ready-to-cook food items are gaining popularity. Brands have been able to change the lifestyle of people in India specially.” Another interesting aspect coming from the research is the top decreasing priorities globally which are – Luxury, Social status, Patriotism and Nationalism. Findings suggest that pure status symbols are becoming less meaningful and the consumers are looking forward to use their income in a much more meaningful way. An interesting trend, which is being seen in emerging countries in Asia Pacific and Latin America, is the dominance of local brands among the most meaningful brands in respective markets. These brands are usually from a varied set of sectors. In Asia Pacific the results were based on the views of 10,000 people for 87 brands in four countries including India, Japan, China and Indonesia. As long as Indian consumers consider brands to be a part of their lives and remain loyal to them, the Indian marketer has no cause for worry.. -ankur.gaurav@exchange4media.com
35
FEATURE: DRIVING ENGAGEMENT
Tell a Story to
ENGAGE YOUR
CUSTOMER As smart phone penetration goes up, marketers need to develop content that is simple and can be used for precision targeting of the audience By Rashi Bisaria
W
hatever be the medium you choose to communicate with your customers in, you must have a great story to tell or the target audience will lose all interest in your brand. This is one of the cardinal rules that brands need to adhere to in order to get noticed, remain relevant and drive engagement. As mobile marketing took centre stage at an event partnered with exchange4media, experts touched upon various aspects of successful advertising and marketing, keeping the customer as the focus of all marketing efforts. Ways and means to engage the customer turned out to be the most discussed and dissected topic of the day, with marketers and advertisers citing examples of campaigns where the customer was effectively targeted. Whether it was the “Trendify” campaign for the eye-catching launch of Nokia Lumia or the “Katrina in a bottle” campaign for Slice, each successful marketing attempt had one thing in common, a great brand story that animated and engaged the consumer successfully. Aditya Save, Head, Digital Marketing and Media, Marico described the process, “Great brands become story tellers. The stories
are larger than life and draw us in. The best stories are those where the consumers want to be a part of the story.” Therein lies the key to draw in the customer. Each time the brand tells a story, it needs to be exciting enough for the consumer to want to participate in the narrative. The narrative could be on any medium but the story should pull them in. Once the customer gets drawn into the story, the engagement has begun. Engagement captures the imagination and imagination creates advocacy. Save’s idea of successful engagement is when the customer himself becomes an advocate and starts telling the story. This happened with Marico when it launched an anti-hair fall product in an already cluttered market. Assuming that consumers trusted each other more than they trusted marketers, Marico let the consumers tell the story themselves to other consumers. This added credibility to the campaign and this brand advocacy led to a successful story-telling. At the end Marico benefitted the most from this advocacy as it managed to get double digit market share in an already crowded market. Current trends show that there is a pro-
Apple, Coca-Cola, and McDonald’s are known to be great at telling their own stories in innovative and creative ways to create strong brand identities with an emotional appeal 36
liferation of content and an explosion of apps in the mobile ecosystem. Crafting of marketing and advertising through mobile as part of the marketing mix has become the norm rather than an exception. The number of people who access internet on mobile has gone up. As smart phone penetration goes up, marketers need to develop content that is simple and can be used for precision targeting of the audience. Therefore, the need to tell a simple but impactful story becomes a strong requirement. In fact, brands need to make that shift from messaging to storytelling. Brands like Apple, Coca-Cola, and McDonald’s are known to be great at telling their own stories in innovative and creative ways to create strong brand identities with an emotional appeal. Apple’s commitment to improving people’s lives through technology is a mission statement and it tells the story in a very simple, clear and lucid manner. Clients have become aware about the importance of mobile integration in tapping these customers. Marketing strategies take into account all the mediums being used by the consumer. With different platforms, formats and changing customer behaviour, the only constant is an effective story. If you have a meaningful story to tell, you have already broken through the clutter. -rashi.bisaria@exchange4media.com
Pitch | Sep-Oct 2013
COLUMN
Let’s have a “creative” festive season Ramanujam Sridhar CEO, Brand-comm sridhar@brand-Comm.com
I
t is that time of the year when marketers lick their lips in anticipation of a bumper sale. You don’t need to be a genius to figure out that India spends and spends big during the festive season. India is united by its festivals even if they might vary in intensity and importance across the length and breadth of this diverse country. Pongal is big in Tamil Nadu, Durga Puja even bigger in Bengal, Ganpati overwhelms Maharashtra and Diwali takes over the whole country. Spending varies across categories with the big ticket items likely to be apparel, jewellery, consumer durables and maybe even cars and two wheelers. Instead of spending our time worrying about what will sell more during this particular festive season, it’s important to figure out what marketers should do now as they stand at the threshold of this opportunity. Think regional My mind goes back 25 years ago to an advertisement by Asian paints. Pongal is the important harvest festival for the Tamilians. This is the time when Tamilians (at least those whose livelihoods are linked
to the land} get money . Asian paints knew it needed to talk to the target market in their own language and appeal to their sentiments. The brand came out with a commercial in Tamil with an exclusive appeal for the consumers of that region. It captured the importance and nostalgia of the festival on celluloid, along with an unforgettable jingle. The film, produced by O&M, as the agency was known in those days, was produced by Rajeev Menon who later became a celebrated film producer. The idea of creating an advertisement exclusively in a language for a region has since become accepted if not common. Think custom Another example, this time more recent, is also from Tamil Nadu. Most Tamilians view the time from July 15 to August 15 to be inauspicious, as per the Tamil calendar. They will not buy property, enter into a lease agreement or even buy expensive products during this time. One of the other customs observed during this time is that a newly married couple needs to stay away from each other. Aircell, the mobile brand produced a new commercial
I believe those who can think differently and come up with marketing initiatives that are unique and differentiated will be clear leaders Pitch | Sep-Oct 2013
where the husband comes to see his wife off as she leaves to go to her parents’ home. It is clear, they are newly married and likely to miss each other and yet follow the dictates of tradition and custom. What would link them is the mobile as they keep talking to and messaging each other. Aircell came up with a unique scheme of recharging for ` 65 with free talk time and sms to beat the challenge of separation. It hoped to strike a chord with most Tamilians who have been exposed to this practice for some time. Who will win the festival sweepstakes? While it is clear that marketers will probably aim for sales yet again during the festive season, I believe those who can think differently and come up with marketing initiatives that are unique and differentiated will be clear leaders. I believe that creativity and innovation in the market place will be key. Will our marketers merely keep repeating “innovation” or actually do something “new” and “different” is something that I would be watching with keen interest. For I wear two hatsone of a consumer and second, more critically, that of a student of marketing and branding. The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch
37
COLUMN
Personal Needs vs.
Mark Ingwer Founder and Managing Partner, Insight Consulting Group, Author of Empathetic Marketing
CUSTOMER RELATIONSHIPS M any companies talk about the need to establish strong “relationships” with their customers. Some compile complex Customer Relationship Management algorithms to develop and maintain these relationships. And, these companies rightly recognize that the transactional interactions of the past are ineffective in creating loyal customers. The concept of customer relationships makes sense in the context of meeting personal needs. As in all inter-
personal relationships from friendships, to marriage, to company and client, trust and the promise of mutual benefits are the foundation for growth and development. When we put others’ needs first in relationships, we’re more likely to make those relationships work.
Emotional Needs Not Yet a Business Priority After decades of formally documenting the stages of business-customer relationships, we’ve learned that many companies become complacent in
their endeavor to understand, satisfy and embrace the emotional needs of the consumers. Companies understand the meaning of “relationships,” but rarely consider what it takes to make their audiences’ needs a priority. They seemingly cross their fingers hoping that what brought customers to their company will cause them to be loyal. Just as in most human romantic relationships, business-to-consumer relationships fall apart when one party (the business) fails to track the evolving needs of the partner
Even when brands claim to desire lifetime relationships with customers, many tactically distance themselves from the humanity of their interactions 38
Pitch | Sep-Oct 2013
(the consumer). The challenge of sustaining long-term value pushes businesses toward considering short-term relationships as the easiest route to profits. Indeed, if a department attracts new customers, it wins the lion’s share of the marketing budget, but it is well documented that it costs some companies five to ten times more to attract new customers than to retain an existing one. On the other hand, if companies sustain relationships with existing customers, a mere five per cent decrease in annual defections can lead to a 25 per cent to 125 per cent rise in profits. Another way of crystallizing these figures lies in a social reality of the Internet era. When we are satisfied with a product or service, we may tell three friends, but when we are dissatisfied, we’re inclined to tell (or Tweet) it to three thousand. Even when brands claim to desire lifetime relationships with customers, many tactically distance themselves from the humanity of their interactions. The systemic nature of marketing strategy depersonalizes their audience by using language that groups customers into segments and targets. People are commonly referred to as ‘buyers,’ ‘shoppers,’ ‘payers,’ ‘non-responders,’ ‘early adopters,’ and ‘eyeballs.’ What is too often lost is the nuance - human. The routine marketing logic follows a self-sustaining strategy: measure category and purchasing behaviors, shoot a creative mix of emotionally salient messages and rational pleas at the targets, place all bets on marketing science and presume the targets can’t help but consume. But if we truly view consumers through the lens of relationship dynamics, we’ll learn that whether we are working, shopping or engaging with friends and family, our psychological needs are a constant driving force. Understanding and putting this into practice strategically will eliminate the artificial two-way mirror between daily life experiences and the ways businesses communicate.
Pitch | Aug-Sep 2013
The Powerful Role of Trust Customer relationships, like interpersonal relationships, are built on trust. And if trust is lost, the relationship is lost as well. Marketing scholars Jennifer Aaker and Susan Fournier reveal how closely business relationships and interpersonal relationships mirrored each other in an Internet-based psychology test. Over a two-month period, the researchers measured the evolving strength of their relationship with customers as they were introduced to an online film processing and digital library business. The participants were told that they had been selected for a pilot program before the business was to be opened to the public. They were
If the company delivers as promised, there is no question that the personal touch will keep customers invested in the experience for a long period of time told to take pictures and use the website’s services at their pleasure, evaluating the experience along the way. Some participants interacted with a version of the website that used exciting, ampedup marketing language. Other participants engaged with a company that was more down to earth, personalized and directed at forging a sincere dialogue.
The Sincere Company Aaker and Fournier found that relationships with the ‘exciting’ company had the trajectory of a short-term fling, while those involved with the ‘sincere’ company developed a relationship that deepened over time. The sincere, relationship-oriented business had raised consumer expectations of the service
quality and built loyalty to the website. If the company delivers as promised, there is no question that the personal touch will keep customers invested in the experience for a long period of time. Yet there is one caveat to the research that speaks to the irony and complexity of consumer decision-making. When the researchers imposed an unexpected service failure within the experiment— e.g., “Sorry, but we lost all your film!”— Relationships with the users interacting with the sincere business were harmed the most. Why? Because when a business promotes itself as an earnest entity that truly cares about its customers and then fails to deliver on those expectations, it does more harm than simply not delivering. “Trust is much heralded in
39
pointed fingers at third-party contractors, tacking an asterisk to every apology. Perhaps they should have known that what won’t work with a friend or loved one won’t work for an angry public either.
The Deceit of Satisfaction On the surface, one might think that meeting needs is purely about satisfying the consumer. It’s hard to deny that sentiment but what needs to be done is a realigning of the definition of satisfaction with what makes us deeply satisfied. Of course, companies are trying to interpret and meet emotional needs but it is questionable whether traditional consumer research methodology is capable of measuring true need satisfaction. Consider these two
confounding. If everyone says that they are satisfied, why do most new products fail?
Surveys fail to predict repurchase As it turns out, positive consumer satisfaction surveys are neither a predictor of repurchase nor an indicator of whether emotional needs are met. Most companies go only so far as to ask whether their clientele is satisfied with their “experience” – most customers say “Yes.” The marketers congratulate themselves, only to find later that the same ‘satisfied customers’ went elsewhere the next go-round. Again, the mental process that occurs during a customer satisfaction survey is typically a rationalization of past experiences. The brain quickly evaluates the individual’s expectations of the product, and if they were in the ballpark, the product
Businesses must re-establish the emotional trust that is destroyed when they transgress and be prepared to stand by that attitude when crisis strikes marketing, but it has a downside,” said Aaker in an interview for Stanford Graduate School of Business (GSB) News. “What needs to be understood and managed are the contracts, norms and rules that underlie the relationship between a consumer and brand, and how a brand’s actions fit or violate those norms.” Businesses must re-establish the emotional trust that is destroyed when they transgress, be committed to following through on promises and be prepared to stand by that attitude when crisis strikes. In the days following the British Petroleum (BP) oil spill, how many times did we hear executives tell the public not to worry? While Chief Executive Officer Tony Hayward haplessly expressed how much he would “like his life back,” BP was writing a 187-page legal report that
points: •
Roughly 80 per cent to 90 per cent of the new products and services fail or drastically fall short of sales expectations in their first year.
•
Customer satisfaction is used by 90 per cent of the companies as a benchmark for success. Overwhelmingly, most companies report that their customers like their products just fine.
What’s at play with this apparent contradiction? One reading of the product failure data is that there are too many products in the marketplace. And, in most cases of failure, advertising and marketing efforts aren’t successfully connecting emotionally with the consumers. But the customer satisfaction benchmark is
At the end of the day, businesses must see their customers as individuals who are always striving for a healthy sense of self-identity 40
is checked ‘satisfactory.’ A one-time purchaser of an electronics brand may never tell a researcher, “It worked well enough. I was satisfied. But the design and overall feel just didn’t enhance my deep-seated feelings of identity and autonomy.” The consumer may have appreciated the product, but if his or her unarticulated emotional needs went unmet, the appreciation means virtually nothing for a business trying to form a base of loyal buyers. This is a problem for businesses using a logical, traditional process to study the emotional issue of satisfaction. If a business is going to learn about an emotional issue, it needs to study the issue with a method sensitive to emotion. At the end of the day, businesses must see their customers as individuals who are always striving for a healthy sense of self-identity.
The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch
Pitch | Sep-Oct 2013
INTERVIEW: Dr M.G. PARAMESWARAN
India’s future seen through the lens of
21 THOUGHT LEADERS search will reach the common man? The healthcare sector needs urgent attention and the article by Dr Hasit Joshipura paints a very interesting picture of technological possibilities. The Indian medical profession has innovated in delivering cost effective healthcare, be it the Jaipur Foot or the low cost cataract surgery. I am sure there will be many such process improvements. Add to this the interesting developments in technologies like stem cells and we can be sure that by the year 2061, Indian medicine will be a trendsetter for the world.
If you have ever wondered what India’s future would look like 50 years from now, then the latest tome “India 2061: A look at the future of India” by the team at Draftfcb + Ulka is an eye-opener. The book, published by Cogito Consulting Publication, is a collection of views of eminent thought leaders who have painted a picture of India as it would be in 2061. The book celebrates the advertising group Ulka’s 50th birthday and comes with detailed quantitative analysis along with the views of 21 experts. In an interaction with Pitch, Dr M.G.Parameswaran, the Executive Director and CEO of Draftfcb+Ulka Advertising, who is also one of the editors of the book, talks about India’s future and the difference the book hopes to make. What was the intention behind calling on these experts and making them write about a future that we can only imagine but not be sure of? We had created a white paper on India 2061 last year and the numbers looked great. We however had a nagging doubt about the reality vs the projection. So, we thought we should share these numbers with thought leaders and business leaders to get their second opinion. The idea blossomed into a collection of articles. How much will the book be able to influence policy makers? Well, what the book contains is probably there in some government publications as well. As they say there is no dearth of information, just dearth of execution. We will be sending it to all the key departments of the Government. Which aspect of India holds the best promise for the future according to you? All aspects of India hold great promise, but the most exciting is the human resource story. The number of college graduates is
Pitch | Sep-Oct 2013
expected to grow dramatically and this will hopefully change the polity of the country as well. Better educated India will pave the way for many interesting opportunities. Water is a finite resource and the article on Water Resources brings up some alarming facts and figures. Don’t you think that Water is the single most important issue confronting us and if that’s not solved, the other articles have no basis at all? Water issues have been brought out very well by Dr Malini Vijayshankar’s article. And the story is very scary. Fortunately nature sometimes has an answer to our problems. I am told the excessive monsoon this year will help us stave off a big issue on water, for a few years. But the key challenge is the depleting green cover and that in turn creates depletion of water. The article on Healthcare Environment holds out a lot of hope as it talks about stem cell technology, preventive medicine etc. Do you think any of these strides in re-
All the articles stress the point that what we do today, is of utmost importance. But do you think the policy makers are aware of this and are working towards it? I am sure the policy makers are aware and working on what they need to do today to ensure that the 2061 dream comes true. Let us not forget that when India attained independence 67 years ago a large part of the western world, including Winston Churchill were of the opinion that India would collapse. But we have survived and thrived. Yes, we still have many problems to overcome in many different domains. I am sure the powers that be are well aware of the things they need to do. Compared to 50 years ago, does the future look brighter or dimmer? The future looks bright, very bright. I understand that the country is going through a period of gloom and doom. Interestingly, it is when the country went through a similar phase in 1990 that we woke up to the reality of the world around us and the need to change. We did change a lot, from 1991 till a few years ago. That time is upon us once again. The time for action. The time for implementation, not just for words. -rashi.bisaria@exchange4media.com
41
FEATURE THE BUOYANT INDUSTRY
“The Indian wedding is the Indian wedding is the Indian wedding. There is nothing that comes close to it.”
Rohit Bal
Fashion Designer
An average Indian spends 1/5th of the wealth accumulated in his lifetime on a son or daughter’s wedding The Indian wedding business is estimated to be worth ` 2,300 billion a year The Indian wedding industry will surpass `3,100 billion American wedding market in 2 years 42
| Conde Nast India Pitch 2013 Source: Sep-Oct
By Ankur Gaurav
D
espite the whole economy reeling under a slowdown, Indians are not shying away from the opulence of Indian weddings. The big fat Indian wedding continues to remain fat for all those involved. Everyone, right from those in the entertainment sector to decor, beauty clinics, travel, tourism and matrimonial web sites are minting money from the wedding business. Fashion Designers have assumed great importance of late and can be called the faces of the wedding industry. With the setting up of the India Bridal Fashion week in 2010 and the Couture Fashion week,
With the setting up of the India Bridal Fashion week and the Couture Fashion week, the industry has become organised with fashion designers becoming beacons for bridal fashion the industry has become organized with fashion designers becoming beacons for bridal fashion. These events have become venues to spot the latest trends and to connect with India’s leading fashion designers for opportunities such as creative collaborations, endorsements, appearances and consumer connects. In an interaction with Rohit Bal, he said, “I am delighted to be a part of The India Bridal Fashion Week. IBFW is a potential platform for showcas-
ing authentic couture, and an effort to bring together people from various creative spheres to create dream weddings.” At the Mumbai edition of Tarun Tahliani’s annual Couture Exposition, held at the Four Seasons Hotel this year, global companies, including DeBeers, the World Gold Council and Johnnie Walker were present at the event in order to engage with the elite clientele that Tahliani is able to draw. Such a get-together of clientele often results in
Wedding industry far from Any Such impact of slowdown Designers speak “Someone’s wedding day is by far the most special day in their life and they want to look and feel their best that day. So I don’t think expenditure is a specific constraint for that one memorable occasion in one’s life. Moreover, consumers are spoilt for choice with a huge variety being offered to them at varied price points, so a wedding can easily be customized as per your budget” - Anita Dongre
Asma Hussain
Pitch | Sep-Oct 2013
“A Wedding in India is more than just a showcase of wealth. For Indians it is where we fulfill our emotional aspirations to look better, feel better”
“People might reduce a function or two but they will live it up during the wedding. The brides and grooms can never compromise on the outfits or the jewelry as pictures of the occasions are shared all over the internet and social media” Shyamal & Bhumika Shodhan
43
FEATURE THE BUOYANT INDUSTRY demand can be attributed to weddings, which means more than 400 tonnes of gold is exchanged at weddings in India each year, making it the single largest component of the Indian wedding market, worth around ` 150 billion a year, about 60 per cent of the total wedding market.” The Indian wedding culture is also known for passing off wealth from one generation to the other and gold becomes a major part of this legacy. The sheer scale of gold jewellery at Indian weddings can leave one gasping. The bride’s jewellery at an average high-end wedding in India will have pieces which are worth ` 6 lakhs to ` 25 lakhs each, with an overall budget of about ` 1.2 crores spent on jewellery. A harvest season for jewellery brands For jewellery brands, the wedding season is the annual harvest period. Most of the brands begin their campaigns and product launches during this period. According to Soumen Das, Assistant Marketing Manager, Gili, “Customization and service given to the customer plays a very important part in building a loyal customer base. Wedding customers bring big business to us as they are not individuals but families that come
Break-up of expenses of wedding industry
Miscellaneous Rohit Bal unveiled his Bridal collection for the first time on ramp during India Bridal Fashion Week 2013 held in Delhi a win-win partnership between designers and brands. According to designers Shyamal & Bhumika Shodhan, their talent itself is a marketing strategy for them, “We designers do not need to market ourselves as our collection speaks about our talent.” Beside the glitz and glamour of the bridal weeks, what also acts as a marketing tool for designers are the models who make more of a mark if they are celebrities in their own right. The sheer extravagance of an Indian wedding can be gauged by the fact that the budget for clothes for a high-end Indian
44
wedding can easily surpass ` 3 crores. A high-profile, heavily encrusted bridal ‘lehngha’ can cost up to ` 60 lakh. Word of mouth publicity makes a huge impact for the designer as the bride and her ‘wedding lehngha’ enjoy the limelight during a wedding.
20%
Pre Wedding Ceremonies
20% Bridal Trousseau
10%
Jewellery
20%
rations Wedding Day Celeb
30%
Gold Rush during the Indian wedding
Source: Talk of the Town Events & Décor
The most integral part of an Indian wedding is the buying and selling of gold jewellery. India is the largest consumer of gold in the world. Vipin Sharma, the World Gold Council’s director of Jewellery for the Indian market says, “About 50 per cent of India’s gold
together during a wedding and each one of them has to trade some stone or the other. In order to encourage sales at Gili , we have extended our portfolio to handbags, apparel, not because we are shifting our focus from jewellery items, but to fulfill the desires of
Pitch | Sep-Oct 2013
customers who want to see how the jewellery goes with the apparel, handbags, etc. The objective is to build an image of a lifestyle brand and not just a jewellery brand.” PC Jewellers on the other hand are aggressively expanding their presence and are gaining visibility through couture weeks and fashion shows. The brand was recently found marketing themselves at IIJW and PCJ Delhi couture week. PCJ spokesperson - R K Sharma, COO, PC Jeweller Pvt Ltd explains “During the couture weeks, we realized customers are more interested in kundan, polki and fusion jewellery. We understand the trend at these shows and showcase it when the season comes.” The lack of organized players in the tier-2 and tier-3 markets has made PCJ look towards various cities. Sharma adds, “We have expanded our presence to nine states and 36 locations in order to captivate the evergreen and cross-demographic wedding market.” While Gili extended its portfolio to other wedding related accessories, designer Anita Dongre is stretching her creativity into gems and jewels also. She says, “I have re-
Pitch | Sep-Oct 2013
cently launched my jewellery line- Pinkcity in association with Pradeep Jethani of Jet Gems. It is a collection of ‘jadau’ gold jewellery for men and women. It’s a natural extension of my bridal wear line given that jewellery forms an integral part of a wedding trousseau or any other festive occasion. I had started out with designing ‘jaali’ work inspired gold cufflinks and buttons for men and eventually ended up doing an entire collection for men and women which I now retail from my bridal store.”
chunk of tourists undertake honeymoon travel, the Tourism Authority of Thailand recently launched the second edition of ‘Weddings and Celebration in Thailand’, a campaign that aims at working closely with Thai tour operators and event management companies who take up the entire responsibility of organising the weddings for Indians. The tradition of getting married in a temple/church or marriage hall is slowly phasing out with the arrival of newer trends such as resort weddings and destination weddings, making the wedding more than just a celebration. While traditional weddings are in
Wedding tourism keeps the travel industry afloat Since the rupee started sliding and later crashed against the dollar, the travel and tourism industry has suffered a setback. People are refraining from travelling abroad. However, wedding tourism is what has kept up the hopes of the industry. According to Sanjay Singh, COO, Overalltravel.com, “The Indian traveller has become more experimental and is ready to pay for the comfort and luxury of a quality honeymoon while also opting for new activities, giving tour operators a chance to serve them better with newer options.” Adding to his comment Singh says “Honeymoon packages contribute 20 per cent to the tourism industry.” In fact, newlywed couples are generating revenue for the Malaysian tourism industry too. India is Malaysia’s second largest tourism source market, with a total of 7,80,000 Indian tourist arrivals this year, and an expected 8,00,000 Indian arrivals next year. As a large
“During the couture weeks, we realized customers are more interested in kundan, polki and fusion jewellery” R K Sharma COO, PC Jeweller Pvt Ltd no way passé, they have undoubtedly been given the western twist. Theme weddings are fast becoming a popular facet of Indian weddings and this has led to a structured industry of wedding planners. As always, there is a flip side to the opulent wedding story too. There’s a slow but steady growth of a different mindset especially among the new-age brides and grooms of cutting the frills and keeping it simple. There can be seen signs of a shift towards no-nonsense, no-frills wedding ceremonies. Although, a change is a long way off, it can eat into the industries that feed into the Big Fat Indian wedding of today. -ankur.gaurav@exchange4media.com
45
FEATURE: INTERACTIVE MARKETING
Fresh twists in
interactive marketing Smart phones are the biggest drivers of mobile based innovation in advertising. QR codes and missed calls have seen a dramatic rise in popularity over the years By Gunjan Verma
T
he Asian consumer has always appeared more attached to the brands he uses in daily life. A study conducted by the Havas Media group which connects human well being with brands at a business level has corroborated this observation. The research that included 700 brands, over 1,34,000 consumers in 23 countries gives an insight into the minds of consumers worldwide. As the ‘scratch-and-win’ mania in print ads fades, mobile-based innovation in advertising is gathering momentum. The biggest drivers of this phenomenon are smartphones. The best campaigns are
those that offer real benefit and do a good job enticing people to actually want to pull their smartphones out of their pockets. And that’s where QR (Quick Response) codes and missed calls take the spotlight. Invented almost 20 years ago in Japan, QR codes were used in car manufacturing plants in order to help manage inventory. Over the past few years, QR codes
have seen a dramatic rise in popularity. You can find them anywhere — print ads, business cards, ticket counters, packaged products, etc. In a way, QR codes bridge the gap between a print ad and an interactive destination. For instance, if the intention is to bring audiences to another place from the print ad, the QR code can enable that
Invented almost 20 years ago, QR codes were used in car manufacturing plants in order to help manage inventory without expecting the user to head to the nearest PC/notebook and just do it almost instantly, by using his/ her phone’s camera. One of the most innovative usages of QR codes was done by Heineken at the Heineken Open’er Music festival when it delivered a new message from the brand, ‘Open your world’. Grabbing the insight of meeting new people at such festivals,
46
Pitch | Sep-Oct 2013
The character ‘Bob Biswas’ from the film ‘Kahaani’ got the message across with a dash of humour and gained popularity with an excellent response for the brand
“At open’er festival about 5000 QR stickers got printed in just four days and QR codes became an instant hit” Samar Singh Sheikhawat VP, Marketing, UB Group
Heineken created U-Code – QR code stickers that carried people’s personal messages. The QR code became an excuse to approach someone. Since the messages were coded, they maintained the intimacy of the message too. The result was about 5,000 QR stickers got printed in just four days and QR codes became an instant hit with the people who actually “opened up their world.” Other such examples have been with Shoppers Stop’s secret discount offers, 7Up’s downloadable ‘I feel up’ song and many print ads that flash these codes in daily newspapers. Though the explosion of smartphones
Pitch | Sep-Oct 2013
has opened new avenues for marketing and advertising, there still are people who use prepaid connections, are very frugal in spending talktime and do not use internet on mobile. In Asia, about 56 per cent of mobile users not use internet on their phones. However, this does not end the opportunity for a marketer to reach to that audience because the basic features of a phone – call, message and camera still can work wonders. This was an opportunity tapped by Wheel, a product of HUL. With a popular feature of ‘missed call,’ Wheel showed
“The missed call campaign generated over 300 per cent increase in sales reaching almost 2.6 million consumers” Atit Mehta Head Media Services, HUL
the power of mobile in driving laundry detergent in rural India. The brand asked the users to give a missed call on the tollfree number, and in return they would receive a call from the bollywood star Salman Khan, sharing a pre-recorded message and a joke, thereby reinforcing brand value. “The campaign was supported by other media forms to spread awareness and generate over 300 per cent increase in sales by reaching almost 2.6 million consumers. That’s the power of the mobile,” says Atit Mehta, Head Media Services, HUL.
Kingfisher’s Hunt for the Calendar Girl saw a similar participation from the viewers of the program, and Quickr.com TVC with the character ‘Bob Biswas’ from the film ‘Kahaani’ to get the message across, with a dash of humour gained popularity and excellent response for the brand. Engaging your customers in a more innovative manner and understanding his/ her needs while delivering your message clearly has become the mantra of mobile marketing. Marketers are constantly tapping every activity of the consumers to find an opportunity for their brand to connect with them. -gunjan.verma@exchange4media.com
47
COLUMN ANNURAG BATRA
Can innovative marketing lure the discerning consumer this festival season? I
Annurag Batra Chairman & Editor-in-Chief, Pitch Magazine abatra@exchange4media.com @anuragbatrayo www.facebook.com/anuragbatrayo
t’s that time of the year again when the festive spirit envelopes not just the consumer but also the marketer. It is harvest time for brands as they coax people with hard-to-resist discounts and freebies, to loosen their purse strings and connect with the brands. This year is different. The pall of gloom that influences consumers’ outlook is hard to miss. But for the marketer, the festival season comes with huge hope. They are looking out for that one big opportunity to turn around their fortunes and this season is that one big opportunity when footfalls in showrooms can be increased, the consumer can be lured with attractive offers, a brand’s image can be restored and consolidated. The festival season that begins with Ganesh Chaturthi and Onam and goes on till Christmas, is a driver of the economy. The Indian consumer has evolved over the years and buying patterns may have changed but most Indians still harbour a traditional mindset. We still think it is auspicious to buy Gold on the occasion of Akshay Tritiya, new clothes for Di-
wali, Onam and Durga Puja and head to the markets to celebrate. With the falling rupee and rising oil prices, the country has been jostling with a difficult economic situation. The festive season with its positive vibes and potential comes as a breath of fresh air to dispel this gloom both for bargain hunting consumers and hungryfor-profit marketers. The festive season also ushers in the robust wedding season which again holds great potential for marketers if leveraged well. Weddings mean more business for all associated industries and heightened activity for consumers and marketers. So just how ready are brands for this opportunity? Has the festive season unleashed their creative potential in coming up with innovative campaigns? What kind of budget has been set aside for these months? What kind of deals and offers can pull in the crowds to stores? Has the marketer found the pulse of the consumers? The answers will reveal themselves over the coming months as the festival season gets under way.
Festivals can provide maximum exposure to brands and innovation in marketing can be the much needed differentiating factor 48
Different sectors have been differently affected by the falling rupee and it is up to marketers how they can develop eye-catching and attentiongrabbing campaigns which can lead to actual sales. Festivals can provide maximum exposure to the brands and innovation in marketing can be that much needed differentiating factor. Digital has emerged as a strong communication medium and can help spread the message in a multi-platform world like ours. How well a marketer can utilise this medium to connect with the target consumer and lure him into making a purchase will depend on the ability of the marketer. There is a need to engage the audience at a deeper level and that can come through the digital medium. Advertisers are realising the value of digital marketing and it is being integrated into the marketing mix. Today, the difference between the success and failure to woo customers might well be how the digital medium has been harnessed by the brand. The tumbling rupee and the dismal economic environment have made Indian marketers wait longingly for that ray of hope. Will the festival season prove to be that hope is a question that remains to be answered in the coming months.
Pitch | Sep-Oct 2013
BAADSHAHAT BARKARAR IBC24, paanch saalon se Chhattisgarh ka sabse lokpriya channel hone ke saath hai aam janta ki sabse damdaar awaaz. Judiye aise channel se jiske taar judien hain aapke dil se.
IBC24 365
Indi Newa MPCs G
TVR' 000
324
Ze Madhe Pr ya Chhaadesh ttisga rh
283
Bansal News
101
ETV Madhya Pradesh
81
Source : TAM wk 36 Viewership data (GTVT), TG 15+yrs, CG 0.1 mn to 1 mn Aug-Sep2013 2013 Pitch | Sep-Oct
Business Enquiry Contact: Mr. Anurag Agarwal Mobile: +91 9811819334, Email: anurag.agarwal@ibc24.in Available on local cable networks in M.P. and Chhattisgarh
73
rni regn.no.:deleng/03/11/11487
6
Aug-Sep2013 2013 Pitch | Sep-Oct