Pitch September 2012 by Adsert Web Solutions

Volume IX Issue 12 | September 2012

` 75

Mapping the Young Consumer Mind How does the Indian Youth perceive brands? Their likes and dislikes...

Pitch | September 2012

PRESENTED BY

Pitch | September 2012

INSIDE COVER STORY

Pitch Volume IX, Issue-12 September 2012 Publisher & Editor-in-Chief Annurag Batra Editor & Director Amit Agnihotri Director Nawal Ahuja

EDITORIAL TEAM

Consulting Editors

Vinod Behl Noor Fathima Warsia

Deputy Editor

Dhaleta Surender Kumar

Assistant Editor

Ruchika Kumar

Principal Correspondent

Pallavi Srivastava

Correspondents

Abhinav Mohapatra Aditi Malhotra Arshiya Khullar

Art Director

Jasper Levi

Graphic Designer

Joby Mathew

Photographers

Vilas Kalgutkar (Mumbai) Suresh Gola (Noida)

AD SALES

Rohit Sardana Abdulla M Mazumder Varnikaa jain Sneha Walke

9811377592 9871609348 9769153087 9845541143

0FFICES

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

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

YOUTH BRAND SURVEY 2012 PRESENTED BY

The DISLO Y AL Gen

Generation eneration

Which is the coolest brand in the Indian market? And which brand is iconic in the eyes of the youth? A peek into the mind of the young consumer and his relationship with brands. The Pitch-Abacus Youth Brand Survey 2012 tries to unravel this mindset

Freezing opportunity

Will yoghurt, the western version of the Indian dahi, find place on the Indian dining tables? What are marketers doing to cultivate the taste?

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 Printed at All Time Offset Printers, E-53, Sector-7 Noida, Uttar Pradesh - 201301 An exchange4media Publication

A case for ‘Social-cause’

36 Tata Tea’s ‘Jaago Re’ campaign has come a long way. With many states slated for assembly elections soon, the campaign urges citizens to exercise their right to vote. Will the campaign work? Pitch | September 2012

A child at heart

Parle enters the confectionery market with Londonderry. Will it be able to beat Alpenliebe?

A Strong Premium feeling

Beer marketers have spotted the opportunity for Strong Premium beers in the country, in recent times. How are they developing the category?

INTERVIEWS

Consumers want devices that express their personality S Rajendran Chief Marketing Officer, Acer India

BOOK REVIEW: Decoding Communication

By: N Chandramouli

OTHERS PVR VI-John McDonald’s Fiat

28 35 44 46

CMOSCAPE Ford

COLUMNS

Pitch | September 2012

Two months ago, when we did the Youth Marketing Special, and interviewed some of the top marketers in India dealing with youth brands, their favourite brand ambassadors were the likes of Mahinder Singh Dhoni, Priyanka Chopra, Ranbir Kapoor and the likes. It was evident that they wanted to have affinity with the youth, and probably think that these are the idols of the youth too. Around the same time, we were doing another exercise – in association with research agency, Abacus, trying to gauge the mind of the youth itself. Their likes and dislikes, when it comes to brands. We’d thought that the ‘coolest’ brand in the Indian market would be iPhone, or an ‘iconic’ brand would be Royal Enfield. And Mahinder Singh Dhoni, Sachin Tendulkar, Kareena Kapoor and Priyanka Chopra would be their favourite brand endorsers. But this generation – 18-30, just proved us and the marketers wrong. Guess, who emerged as the favourite brand ambassador! Amitabh Bachchan, amongst the males, and the girl-next-door, Katrina Kaif amongst females. And the ‘coolest’ brand? Samsung. Can you beat that? And ‘iconic’ brand? Tata, and not Royal Enfield. What does it tell us about the youth? That the Indian youth consumer is matured enough. Our presumptions and the manner we eventually strategise on the basis of these presumptions to catch the youth’s attention are not enough. While on and off studies carried by MTV and Bindass are there, but these are not enough, as they don’t peep enough into the psychology of the young consumer. Brands need to invest more into understanding the youth better. We’ve been saying this forever – We cannot take the youth for granted – but eventually go with our hunch feelings and our general observations only. What was also a big myth buster is that youth get carried away by brands. Brands do not matter to them when they want to own big-ticket purchases like a car. Fuel economy is the most important important factor. Choice of the brand comes way down the list. Similarly, while they can claim to be brand loyalists, there are big chances that their loyalty would come under strenuous test, when another brand is offering them a good deal.

‘Commmunication’ well ‘decoded’

Deepak Bhatt Nitin Chowdhary Pooja Jain Smitha Sarma Ranganathan Sanjay Maheshwary Annurag Batra

Youth never fail to surprise

8 30 38 45 48 56

Also, under pressure is their morality when it comes to sexuality and handling it. Asked which were their favourite deo ads, the answers ranged from Axe to Wild Stone and others – all laden with sexual overtures. But ask them, if they found these ads tasteless and sexually offensive, the answer is a prompt ‘Yes’. ‘Favourite’ and ‘tasteless’, are paradoxical, and we can only say that the youth is deriving voyeuristic pleasure of them. The lessons are open for anybody to guess. But what brand are they buying eventually? That needs another detailed survey. There are more surprises inside. And thanks to the Abacus Team for helping us unravel the mind of the youth. So dive inside, sit back and be prepared for surprises galore.

Amit Agnihotri

amit@pitchonnet.com

LAUNCHPAD

Gadgets & Gizmos MILAGROW KUPA X11

A Windows experience What: Claiming to be the world’s most advanced Windows based Tab Top PC, Milagrow has positioned this as an enterprise device. The 64GB SSD is priced at ` 54,990 and the 128GB SSD at ` 66,990. The Tab is compatible with existing large scale and small-scale ERP and CRM services for industries like, healthcare, sales automation, creative design and hospitality among others. Specification: The Tab Top PC available in two variants 64 GB and 128GB SSD, packs Wi-Fi, 3G SIM slot, Voice Calling, Bluetooth, USB, mini HDMI and industrial standard dual cameras with both the front and rear being a 1.3 megapixel. The

device is loaded with a trial version of Windows 7 Professional. It also has features like 10 hours continuous operation and 30 days standby battery life with a single charge. USP: For maximum Wi-Fi and 3G signal strength, the device has a dual antenna design. It also has a pen, as well as touch input. The pen is sensitive to different levels of pressure. The phone also has security features like fingerprint scanner and Trusted Platform Module.

ASUS PADFONE

PORTRONICS ELECTROPEN

The electronic sword What: The Portonics Electropen can capture the handwritten notes into its memory and send them to a PC and can live upto the claim of being an intelligent pen. Allowing notes to be written on any paper with a normal refill, the pen is priced at ` 7,999.

A novel mobile What: A fully featured Android Ice Cream Sandwich smartphone, the ASUS Padfone claims to offer a novel

Specification: Capable of working on both ultrasound and infrared technology, has a standard 67 mm long x 2.35 mm diameter refill with a receiver that has a rechargeable battery allowing 8 hours of continuous writing. The pen can support 30 hours of continuous writing.

stack of papers for quick note taking. The notes taken on paper are captured in the Clip’s memory and can be transferred to a computer. The best part of all is that the handwritten notes can be converted to text through bundled software with great accuracy. Whereas the Online mode works with the Receiver or Clip being attached to the computer while the user takes notes. Therefore, anything drawn on paper is transferred to the computer screen real time.

USP: The pen can work with both, the offline and online mode. The offline works where the user is just carrying a pen and the clip attached to a notebook, a diary or just a

Background : Portronics India, has a PAN India presence providing portable digital innovative solutions serving both the Retail and the Enterprise segments. 

Background: The Tab Top has been developed by KUPA which is a German Windows based Tab Top PC maker. Milagrow which came into existence in 2007, launched its HumanTech division and entered the Tablet PC market with the World’s first TabTopTM PC, focused on professionals in October 2011. 

Pitch | September 2012

WINDOWS PHONE 8X AND 8S WINDOWS PHONE 8X AND 8S

Gorilla Glass

Smart for ‘me’ What: Claiming to be the first, ‘ultrasmart’ Ultrabook from HCL is priced at ` 51,990 with Hybrid Drive. Packed with Intel 3rd Generation Core i3 processors the Ultrabook has an auto-resume in less than 5 second. Specification: The device is packed with features like 3 USB ports, 1 HDMI Port and weighs 1.7 kg, a 14-inch WXGA, LED Backlit display with a 1366x768 HD resolution. The Ultrabook brags a 2x2W advanced sound system and a built-in multi -gesture touchpad. The phone has a 4 GB DDR3 RAM memory upgradeable to 8 GB DDR3. The laptop has an internal memory of 32 GB SSD plus 500GB 7200RPM HDD. Some of the other features include 1.3 MP VGA camera, HDMI, in-built microphone, 4-in-1 memory card user and Bluetooth 4.0.

mobile experience. With a screen size of 4.3 inches, the device when connected to the Padfone Station dock, is capable of transforming into a 10.1 inch Android ICS tablet. the tablet’s has a battery life which supports 63 hours of talktime. The two bundled together promise an extended battery life of upto 104 hours. Specifications: The Padfone is equipped with a 960 x 540 LCD and the station additionally, has a capacitive touch/multi-touch. A 1 GB memory, 32GB storage, 0.3 megapixel webcam and a Dual Core 1.5 Ghz processor are some of its key features. In addition, the dock station has a 1.3 megapixel front camera and an 8 megapixel back camera.

Pitch | September 2012

USP: The Ultrabook is less than 18mm with metal casing in its width and the device is also supported by HCL Advantage 39 months warranty. The series comes with a very long battery backup of seven hours and complies with BEE Star certification that further ensures a smooth performance with maximum energy efficiency. Background: HCL Infosystems, has a revenue ` 10,840 crores and claims to be India’s premier hardware, services and ICT systems integration company offering a wide spectrum of ICT products. HCL is also into Tablets and mobile devices. 

USP: Priced at ` 64,999/-, the ASUS Padfone caters to the most demanding usage with the incredible battery life it has to offer. Even while the Padfone is docked, users can answer the call using the stylus headset which has a Bluetooth 3.0 Class II compliance. The camera has a Fuji image processer, a F2.2 aperture and a 5-element lens. The device also comes with a one year local carry in warranty. The Padfone Station has a six months local carry in warranty. Background: ASUS claims to be one of the world’s top netbook vendor, has to its credit of being the manufacturer of award winning motherboards. The brand’s portfolio includes products like PCs, notebooks, netbooks, tablets, severs and mobile phones. 

What: HTC and Windows have brought together innovation and design in the new Windows Phone 8X and 8S. The smartphones feature the new Windows Phone 8 operating system with studio quality sound supported by Beats Audio and competitive camera capabilities. Specifications: The 8X has a 4.3 inch HD resolution super LCD 2 screen which can be sheltered from routine scratching and bumping with the help of the lightweight Gorilla Glass 2. The screen is also enhanced by an optical lamination which reduces reflections and glares. The phones facilitate video viewing, music and games with the Windows Phone Store and the Xbox Live. HTC is introducing a 2.1 megapixel camera that has a f/2.0 aperture. The audio amplifier is powered by a 3.5 mm audio jack and a speaker capable of boosting audio signal. USP: An iconic design allows the phones to blend the virtual and the physical, using a 3D, pure uni-body design based on Windows Phone Live Tiles. The phones are also sculpted with a dramatic taper which make them feel sleek and thin in the hands of the user. There is also a range of colours in which the phone is available from Fiesta Red to Atlantic Blue to High-Rise Grey. Background: HTC Corp was founded in 1997 and includes smartphones and tablets powered by HTC Sense. Steve Ballmer, CEO of Microsoft is very optimistic of the leap the lonstanding partnership with HTC being taken to the next level.  Compiled by Abhinav Mohapatra & Aditi Malhotra -abhinav@pitchonnet.com -aditi@pitchonnet.com

REVIEW

Bakwaas Marketing of the month By Abhinav Mohapatra

For the love of ‘Aunties’

or those who remember the Samsung Galaxy Y commercial, and the young girl embarrassing the ‘uncle’, Micormax has been kind enough to show what happens next, which makes the viewer cogitate, is aunty really a derogatory term? Seems Micomax is going to face the heat from a lot of ‘aunties’ which is going to be ‘nothing

Jaana hai, magar!!!

like anything’ that they have seen before. The new Ninja ‘aunty’ phone commercials are taking an opprobrious stand against the Samsung ‘uncle’ advertisements. What will be next? An argument while free-falling from the sky (HTC) or a debate with a Steve Jobs lookalike (Apple)? The company seems to be enjoying the calm before the storm because Samsung is scatterbrained at the moment. But for how long will this calm last? The second thing that I couldn’t help but notice is the rationale behind ‘Why Y?’ Agreed that it has targeted the Galaxy Y, but why not Y? Will there be ‘Why S? And ‘Why Ace’ in the future too? I hope Micromax doesn’t only have Ninja phones when Samsung wakes up; they should hire a few from the east. n

of odious subject matter that I would suggest a brand to take up as it enters the market, no matter how subtle the projection might be. The vivid imagery still does not leave the disturbed conscious mind, even when the white suited doctor explains the harm from food adulteration. Well we all know about one connection in the ad, the connection between Virat Kohli and the word Q, aka Quality, that reminds me of an automobile brand. Whoa! What were they drinking, sorry, thinking while conceptualising the TVC, seems Kuch toh milavat hai.n

unfortunately doesn’t easily get digested. Where is the ‘tadka’ in ‘jalebi’? For those who have seen the ‘Jalebi’ TVC will notice the angelic halo disappeared from the latest packaging of the advertisement. Good or bad, modern or not, seems iconic has become ironic. Was there a hidden message for the trend of the TVC in ‘Jaana hai, magar bees pacchees saal baad’? n

rom the iconic TVC ‘Anokhi shudhhta, anokha asar’ to ‘India ka tadka’, Dhara has come a long way. Maybe too long. The reminiscence of the kid with the yellow T-Shirt and blue dungries, taking a ride home with the postman to have mom-made ‘Jalebi’, is still nostalgic for many. Seems the 90s’ kid has grown up and Dhara has fallen too far from the tree. Though Rahuvir Yadav has narrated Dhara’s ‘Tel ka mel’ alluringly, depicting regional diversity and pegging Dhara’s range as a healthy oil for indulgence, the TVC

Q Bhai?

sounds like an incontrovertible message that Sahara has used for its new TVC for Sahara Q. The company claims it to be the ‘mega quality consumer merchandise business’ but the TVC has an extremely twisted sense of communication. Sachin Tendulkar doing ‘kria karam’ of a family, Virat Kohli passing wheelchairs, Yuvraj Singh back from his slumber, digging graves and placing tombstones, Virender Sehwag shuﬄing baby beds with hospital beds and to top it all Dhoni, telling the ‘naive’ consumers that they are being murdered. Not the right type

Sexist tyres?

ive beautiful international models on the Sepan Malaysian Formula 1 circuit with Audi W12s trying to prove what? That Apollo Tyres help women drive better and safer for their loved ones? Well, maybe this is the abstruse message that Apollo Tyres is giving in its new TVC. Must say, that Shekhar from the music director duo Vishal-Shekhar has done a great job with

Pitch | September 2012

Windows Phone 8X and 8S

Women empowerment is now a cosmetic issue

e talk about social issues related to women, discuss and debate women quota in our legislature, tie up with international bodies like the UNDP for eradicating poverty and hunger for women and strive for their education as a birthright. We should stop that. The opposite sex has finally been shown the path to the imprimatur of their needs. Well it seems Ultratech India Limited has come out with a ‘revolutionary’ cream that can ‘empower women’ – 18 Again – a vaginal tightening and rejuvenating gel. The TVC showing a married, saree-clad, woman and her husband doing salsa in front of their joint family singing, ‘I feel like a virgin’, is by all means a meditative message. Isn’t it? With the grand mom also checking out the

website mentioned in the commercial, the product is seeing no limits where positioning and segmentation is concerned. If the Estrogen cream can really redefine women empowerment, no matter how blasphemous it is, I think I should also fight for the US presidential elections as a candidate. n

Games… not to be taken seriously

“

Isko gaddi toh chalani aati hai na? Licence hai naa?”, well why would my mother tell me to drop ‘Pummy Aunty’ otherwise? The new Nokia Asha 311, with the one GHz processor makes gaming a smooth experience claims Nokia, apparently not for the lady in the advertisement who is to be dropped by this young gaming enthusiast. Haven’t you heard the term ‘boys will be boys’, the red car with flame decals shouldn’t scare you. Somehow the message projected in the commercial does not fit with the product being showcased, in-

Can’t see what falls on radio…

magine your favourite action hero punching through walls and shooting down bad guys or your favourite actress in a romantic scene or a character from the television world explaining the features of an

the background track, but unfortunately, the advertisement is doing rounds for the soundtrack and the pulchritudinous models. As seen on Youtube, somebody had posted: “Thumbs up if you have opened this TVC for the song” and believe me it is the only comment. Behold! Women can drive as good as men do for their loved ones, and Apollo’s ‘go the distance’ somehow does not meld with this TVC. Why Audis? Why not any other automobile company? Why ladies

object to be seen, not on television but on radio. Yes that is what Britannia Good Day Biscuits has done. In its excitement of completing 25 years, the company has tried to tap every platform for advertising but did not really think this one through. The TVC depicting a little boy and a girl running after a Britannia truck to catch falling Good Day Biscuits every day, has been copy pasted in audio format on the radio. When the ‘giri giri giri khushi’ is narrated on the radio, and the kids ask “Aaj Good Day nahi gira?” well, listeners have a hard time figuring out what exactly ‘gira’?. n

and not young kids, with licenses of course? Can Kabir Bedi’s convincing voice induce Apollo Tyres sales? Only time will tell.’? n

stead it reaffirms the theory that parents have. If the kid plays a racing game and does risky driving in the virtual world, he will do the same in the real one too. I suppose this will get the young gaming as well as driving newbies really convulsed. Secondly, gaming is not always about racing, haven’t you learnt anything Nokia? Asphalt, NFS are not the only games boys play on mobile devices. I hope they don’t make a TVC where the kid is playing counter strike or some third person shooter game. Thirdly, was the kid really trying to shoo away ‘Pummy Aunty’ then what was his ‘free style’? n -abhinav@pitchonnet.com

Pitch | September 2012

COLUMN

Brands without brand ambassadors There is no denial that clever selection of brand ambassadors can do wonders for brands. But what really are the success factors of having a brand ambassador?

amil actor Vikram is now the brand Ambassador for Parle-G. Asin the new brand ambassador of Lux. Ranbir Kapoor is Nokia’s brand ambassador. Deepak Bhatt Founder, Global Management “Shah Rukh Khan, new brand writetodeepakbhatt@gmail.com ambassador for Pepsodent. What role does a brand am@hellomrbhatt bassador play in branding of a product? Brand ambassadors are like celebrities from the outside world to laymen urging them towards the product; they personify the values of the brand and create aspirations. There is no denial that clever selection of brand ambassadors can really do wonders for some brands. But what really are the success factors having a brand ambassador? In this age and day, product endorsement has taken many dimensions and one of these dimensions is the person who leverages on the credibility of his personality and following that promote and provide greater visibility to a product, often with contracts by going as high as millions of dollars. But doing so, this servers a tool that strengthens the company’s communication strategy. These people are called brand ambassadors. Although, the exposure in this kind of marketing is less, the ambassadors de-

liver something much more strong and incredible. A word of mouth, which people trust more than other died marketing techniques. A successful association with a brand ambassador sometimes translates into stronger brand awareness campaigns than millions of Rupees spent on other marketing efforts such as advertising and promotion. Now the question is why to use a brand ambassador? What actually is the power that brand ambassador exerts over the consumers to urge them? One of the most important factor that attracts consumer’s mind is ‘psychological’, such as motivation, perception, learning, believes and attitude. And these are the factors that a brand ambassador influences. These people have such a strong impact of personalities that people sometimes, use brand ambassadors as a tool for their product, like we have seen in the case of Junaid Jamshed clarifying Lay’s issue when it was hit by the accusation of using ‘haram’ contents in its manufacturing. Now companies need to take care, while appointing a celebrity to endorse a product, in all respect from thinking perspective of public to

To me, an ideal brand ambassador should be a loyal user of brand by choice (not like Shah Rukh Khan for Pepsodent), not by the opinion of others but by his own wisdom 8

the requirement of the product. It is essential that the attributes of a celebrity like ability, fame, sincerity etc. match the brand identity or the result mismatch will do more harm than good to the brand image. Like Wasim Akram endorsing Pepsi and being diabetic at the same time and publicising Accu meters is not fully appreciated. Pepsi must have reckoned the damage of this to its image To me, an ideal brand ambassador should be a loyal user of brand by choice (not like Shah Rukh Khan for Pepsodent), not by the opinion of others but by his own wisdom. He talks about the benefits and disadvantages of the brand, he promotes the brand wherever he can without knowing. He is the golden loyal customer, which a brand should strive to find. This is the sort of loyal customer, which if given incentives to publicise a product would do an honest job. This can be an example of ideal, true hard working brand ambassador. May be, one day we will see ordinary people like us endorsing products like celebrities from a fantasy world, but what will be the point of marketing then!? After all its all about who gets most attention. 

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

Pitch | September 2012

Pitch | August 2012

COVER STORY

The DISLO Y AL Gen

Generation eneration

YOUTH BRAND SURVEY 2012 PRESENTED BY

Pitch | September 2012

PRESENTED BY

YOUTH BRAND SURVEY 2012

By Abacus Research

ne of the world’s biggest multinational corporations with sales and operations spanning continents, Samsung has a turnover that would make it the 35th richest country on earth if it were one. In India, the South Korean giant may well crown itself the king of at least the young for topping the list of the coolest brands in an exclusive market research survey carried out by Abacus for Pitch. In less than two decades since it exploded in the Indian consumer market, Samsung has emerged at the top as the young people’s favourite, beating major Indian heavyweights such as Maruti, Bajaj and Airtel, and international ones such as Nokia, Levi’s and even Coca Cola. Astonishingly, given a free choice to name the brand that they find, well, the “coolest”, most youngsters did not even consider some of the zanier names such as BMW and Apple, to which Samsung infamously lost a court battle last month

Pitch | September 2012

Given a free choice to name the brand that they find, the ‘coolest’, most youngsters did not even consider some of the zanier names such as BMW and Apple over patent rights in the US and ended up being slapped with a billion dollar tag. Incidentally, Samsung is also in the ‘top two’ of the ‘iconic brands’ list. “This Pitch-Abacus Youth Brand Survey 2012, is in itself a revelation that today’s Indian youth is more tuned into handy, on-the-go electronic gizmos than, say, the aspirational big-buck luxury cars,” says pollster-psephologist, Yashwant Deshmukh. “Clearly, identification is now based more on user experience than by dreams of upward mobility,” he adds. The survey tries to gauge the likes and dislikes of the youth when it comes to brands. Which, according to them is the coolest brand? Do they think that India

has any iconic brands? Would they loosen their purse strings just because the product or brand is endorsed by their favourite brand ambassador? Do the lewd deodorant ads really excite them? Do online ads solve a purpose in their life? These are some of the questions that the survey tries to find answers to. The questions are relevant to every marketer today, who’s looking to attract the youth’s attention. We are leaving out the answers open for marketers to take their own inferences out of the result of the survey. The polling conducted in July 2012 surveyed a national representative sample of 300 respondents selected randomly for computer-aided telephonic interviews, or

COVER STORY CATI, across each of India’s 28 states. The data was weighted to the known census profile. Impressively, nearly 13 per cent or one in eight, youth identified Samsung as the ‘coolest’ brand. That is no small feat, especially since the number two brand of choice is Nokia, which was until recently the brute market leader not just in India but across the world in mobile telephone handsets. The respondents spoken to by Abacus were in the age group of 18-30, more than one-third of whom, at 35 per cent, were 25-27 years of age. Threequarters were male and more than two in five were employed in the private sector. Almost half of them have family incomes between ` 20,000 and ` 50,000 a month. One in five average a family incomes of ` 50,000 and ` 1 lakh a month. Perhaps, the most striking aspect of

PRESENTED BY

YOUTH BRAND SURVEY 2012 unchallenged leader with more than one in five respondents saying, she lights up their fire. Aishwarya Rai has beaten the odds despite becoming a mother to stay a hot favourite and still impresses as the number two choice of young India. Priyanka Chopra is at third place. While the choices may not be all that surprising, the answers of the respondents are when asked how much their buying decisions are influenced by the celebrities. An overwhelming almost 80 per cent – or four in five – flat out say they do not buy a product entirely on the basis of celebrity endorsement. That’s some maturing of the consumer! For example, we asked the youth, the criteria they considered most when finalising the purchase of a car. A whopping 51 per cent said it would be the car’s mileage. Only nine per cent said

Almost 80 per cent – or four in five – flat out say they do not buy a product entirely on the basis of celebrity endorsement. That’s some maturing of the consumer! the survey was how the attraction towards brands among this generation of young adults is hardly influenced by either catchy slogans or celebrity endorsers. Amitabh Bachchhan tops the youngsters’ list of favourite celebrity brand endorsers, with more than 18 per cent saying, that the grand old man of Bollywood is their favourite. He is followed by superstar Aamir Khan at just under 14 per cent. Surprisingly, the all-time cricketing genius, Sachin Tendulkar, comes third behind the film stars with a following of just about 10 per cent, who name him as their favourite brand endorser. Among the women, Katrina Kaif is the

that they would consider the looks of the car. And less than two per cent said they would be influenced by branding. Remember, this is the 18-30 age group! Without doubt, the findings of this survey provide a serious insight into the buying decisions of the youths, who are among the biggest spending demographics in the country, especially for consumer durables. They are not only evolved and matured enough to be able to differentiate between a good brand and a great celebrity endorser on the one hand and the reasons why they should plumb for a certain brand on the other. They are

How the sample size breaks up Gender % Male Female

74.2 25.8

Gender

Age Group 18-25 26-30

Male

54.%

46%

Female

50.8%

49.2%

All

53.2%

46.8%

Education % Graduate

47.2

Post-graduate

27.6

Professional

25.2

Occupation % Private Sector Service Student/Unemployed Business/self employed Government Service Housewife Land owning farmer Others

43.2 25.2 21.2 7.6 1.6 0.8 0.4

Monthly Family Income `

20,000-50,000

46.8

50,000-1,00,000

21.2

More than 1,00,000

Pitch | September 2012

YOUTH BRAND SURVEY 2012

Pitch | September 2012

COVER STORY also open to appreciating the megabuck branding efforts, especially the catchy slogans that marketers employ, without getting too seriously influenced by such slogans in making their spending decisions. Thus, while Samsung is the coolest brand for the largest number, it is Nokia’s slogan – Connecting People – that comes out blazing as the catchiest slogan of them all. Even more surprisingly, the second most zingy line – Kuchh Meetha Ho Jaaye – belongs to Cadbury’s, a brand that does not even claim a spot in the top 70 coolest brand choices of the youth. And the third most preferred brand slogan – the eminently hummable, ‘Har Ek Friend Zaroori Hota Hai – belongs to India’s largest mobile phone service provider, Airtel, which comes at a lowly number 23 in the list of coolest brands. Indeed, the third coolest brand, Reebok, is hardly helped by its globally promoted tag line – “I am What I Am” – which ranks a low 20 in the list of favourite slogans. More strikingly, the fourth catchiest slogan – “Dhak Dhak Go” – belongs to the erstwhile Hero Honda which is perched at the tenth position in the coolest brands list. But perhaps, the biggest indicator of the maturing of India’s youth comes from their appreciation of “iconic brands”. The list is led by what is unarguably India’s most respected business house, the Tatas. And four of the top five – Samsung, Reliance, Maruti Suzuki and Airtel (in that order) – are Indian companies. Another telling statistic about con-

sumer behaviour among the youth that has emerged from this survey is about the levels of loyalty. Self-confident and masters and mistresses of their universe, the youth today are ever willing to discard a brand if it doesn’t satisfy their exacting standards for gratification. Nearly half of the sample size freely acknowledges that it is “highly disloyal”

The biggest indicator of the maturing of youth comes from their appreciation of ‘iconic brands’. The list is led by India’s most respected business house - Tata or “somewhat disloyal” to a brand. And within the set of ‘loyalists’, there are high chances that they wouldn’t think twice to ditch their favourite brand, if another brand gives them a good discount. So what lesson does this very informative survey of the consumer habits among India’s youths hold for the dons and divas of brand management? The message that this exhaustive survey by Pitch and Abacus brings to marketers of all shades is simple and direct: Innovate constantly and never take the consumer for granted. Or perish. Indeed, the collapse of several once premium brands – not the least of which have been Nokia and Blackberry – in the consumer durables category makes it mandatory that brands evolve a long-term and 360-degree strategy towards building up depth in the market. Perhaps, one lesson that is most important for marketers is to remember the words of that grand brand manage-

The message that this survey by Pitch and Abacus brings to marketers of all shades is simple and direct: Innovate constantly and never take the youth for granted

ment advertising guru, David Ogilvy: “Can advertising foist an inferior product on the consumer? Bitter experience has taught me that it cannot. On those rare occasions when I have advertised products which consumer tests have found inferior to other products in the same field, the results have been disastrous.” Now that 24x7 television and internet

messaging is the underpinning of modern life, and the credit card-driven consumers are eligible consumers every minute of their waking day, every main street store is now a consumer test lab in real time. At the heart of all advertising, marketing and brand building is the only one entity that matters most: the consumer. In the words of one of the world’s most respected corporate tsars, Edwin Artzt: “Brand value is very much like an onion. It has layers and a core. The core is the user who will stick with you until the very end.” For the record, Abacus is a market research firm with an extensive nationwide team of field researchers backed by a KPO division at Noida. Sometimes it is not always about knowing why one likes a certain brand, product or commodity. What one does not like too is a differentiator that adds or subtracts from your kitty. Abacus assists its clients in identifying these by asking the right questions and bringing out the actionable intelligence for future growth and success. Flip over to see the findings of the survey.  -feedback@pitchonnet.com -sharmishta@abacusabsolute.com

Pitch | September 2012

PRESENTED BY

YOUTH BRAND SURVEY 2012

Which is the coolest youth brand in the Indian market?

12.7%

10.3% The mobile leader

SAMSUNG

Irrespective of the brand equity, Samsung may have suffered in the USA after Apple won a patents case against the brand, Samsung is the ‘coolest’ brand for the Indian youth. The brand is largely riding on the success of its mobile phones and bringing smartphones in the reach of the common man

6 Maruti

16 Apple

7 Bajaj

17 Hindustan Unilever

8 Fastrack

18 Pulsar

9 Hero

19 Puma

10 Spyker

20 Tata

11 Honda

21 Woodland

12 Nike

22 Airtel

13 Raymond

23 Audi

14 Sony

24 Chevrolet

15 Blackberry

25 Jockey

Pitch | September 2012

2 3

Instead of depleting market share to Android phones, Nokia is still high on ‘cool’ quotient amongst the youth

NOKIA

7.9% REEBOK

Amongst the top five coolest brands, three are apparel brands, and Reebok features higher than Levi’s and Adidas

5.6%

LEVI’S

4.8%

ADIDAS

PRESENTED BY

COVER STORY

YOUTH BRAND SURVEY 2012

Which is the coolest brand slogan?

8.7%

4.4% The Connecting power

The result comes as a no surprise. Nokia if is the second coolest brand, its positioning - Connecting People - is the most coolest brand slogan. Airtel may be encouraging the youth to ‘share’ now, but it is Nokia that got the youth connected early on

Connecting People

6 Life’s Good (LG)

14 Impossible is Nothing (Adidas)

7 What an Idea Sirji (Idea)

15 Khushiyon ki Chaabi (Tata Nano)

8 Just Do It (Nike)

16 Change the Game (Pepsi)

9 Kar Lo Duniya Mutthi Mein (Reliance)

17 Darr ke Aage Jeet Hai (Mountain Dew)

10 Designed for Humans (Samsung)

18 Desh ki Dhadkan (Hero Honda)

11 Happy to Help (Vodafone)

19 Everyone’s Invited (Samsung Digital)

12 Hum Mein Hai Hero (Hero)

20 I Am What I Am (Reebok)

13 Isko Laga Dala to Life Jhingalala (Tata Sky)

Cadbury’s clutter breaking slogan, urging consumers to ditch sweets for chocolates at the beginning of every ‘shubh’ work has caught Kuch Meetha Ho Jaye the imagination of the youth well

3.6% Though a recent introduction Airtel’s new positioning, finds affinity with the Indian youth

Har Ek Friend Zaruri Hota Hai

4 5

2.4% Earstwhile Hero Honda’s catchline still beats in the hearts of the Indian youth

Dhak Dhak Go

2.4% Life Insurance Corporation’s tagline, does hold some meaning in the life of the Indian youth

Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi

Pitch | September 2012

YOUTH BRAND SURVEY 2012

Pitch | September 2012

COVER STORY

Which brand qualifies to be labelled as iconic in the Indian market?

12.3% The proud Indian

Tata

Not surprisingly, the Indian youth is proud of Jamshedji Tata’s legacy. Primarily, known for trucks and buses, the company has stakes ranging from steel, telecom, IT, hospitality, energy, FMCG, besides others. Today it has footprints globally, making its presence felt in more than 80 countries

6 Hero

14 LG

7 Nokia

15 Patanjali

8 Apple

16 Sony

9 Bajaj

17 Videocon

10 Garnier

18 Amul

11 Hindustan Unilever

19 Bata

12 Idea

20 Cadbury

13 LIC

8.3%

2 3

Samsung

6% Legacy of Dhirubhai Ambani is at No 3 in the ‘iconic brands’ list

Reliance

4 5

Not an Indian brand though, a majority of the Indian youth find the South Korean brand iconic, beating the likes of Maruti

4% Maruti Suzuki

3.2% Airtel

Pitch | September 2012

PRESENTED BY

YOUTH BRAND SURVEY 2012

While buying a car, your decision would depend the most on...

51%

Tata Mileage

4 Overall features 5 Comfort Level 6 Over all performance 7 Safety features 8 Maintenance

Save fuel, save money While brand does matter in the choice of a car, the rising fuel prices are a concern for the Indian youth. More than half of the Indian youth give more importance to ‘fuel economy’ over the brand. Brand choice comes at a lowly 11th position

They are a blind spot

0.4% 3.2%

11.1%

12 Model

Pitch | September 2012

Budget

Can’t Say

11.9%

11 Brand

15 Speed

6.2%

Nearly 6 in 100 youth give importance to the price of the car and its affordability

10 or more times

10 After sale serviceability

14 Resale value

Looks

In the last one month, have you clicked on an ad link in your Gmail (or your other mail account) or Facebook account?

9 Interior

13 BHP

After fuel, what matters to the Indian youth is the look of the car

5.2% 5-10 times 1-5 times

When a good 7 put of 10 youth say that they haven’t clicked on an ad link in the last 30 days, is it an indication that marketers are getting online advertising or specifically search advertising wrong?

68.3%

COVER STORY

PRESENTED BY

YOUTH BRAND SURVEY 2012

Which is your favourite deo ad?

30.2%

While most of the Indian youth (80.2%) find deodorant ads as sexually offensive, yet their favourite deo ad is of Axe, which too borderlines on sensuality and vulgarness

2 3

AXE

4 Set Wet

13 Passport

5 Park Avenue

14 Yardley

6 Denim

15 18+

7 Denver

16 Reebok

8 Nivea

17 Zatak

9 Addiction

18 Alfazo

10 Adidas

19 Chemistry

11 Eva

20 Chocolate

12 Fa

The ‘X’ Factor

9.5% Fogg’s is an ad, which sells itself on the proposition that it has more liquid inside the can rather than gas

Fogg

7.1%

The ad is overloaded with sexual suggestiveness, yet is a favourite of the youth

Wild Stone

Do you find the deo ads on TV, as sexually offensive & tasteless? No

18.3%

Yes

80.2%

1.6%

Can’t say

Confused Voyeurism A good 30 in 100 youngsters call the Axe ads as their favourite. Another eight have the Wild Stone TVC as their favourite. But, at the same time, a whopping 80 per cent find these ads sexually offensive and tasteless too. Confused?

Pitch | September 2012

YOUTH BRAND SURVEY 2012

Pitch | September 2012

COVER STORY

Who is your favourite brand ambassador - Male? 9.5%

18.3%

1 2

Amitabh Bachchan

13.9% Amir Khan

Surprise! Indian youth’s favourite brand ambassador is not MS Dhoni. Not even Salman Khan or Sachin Tendulkar. It’s the doyen and the superstar of the century - Amitabh Bachchan

Amongst all Khans, the ‘perfectionist’ is the preferred one

11.1% Sachin Tendulkar

The gentelman, only comes third on the list of favourite endorsers

Salman Khan

5.6%

Big B

3 22

4 5

Shah Rukh Khan

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Akshay Kumar Hrithik Roshan Ranbir Kapoor Abhishek Bachchan John Abraham M S Dhoni Virat Kohli Abdul Kalam Yuvraj Singh Ajay Devgan Narender Modi Rahul Gandhi Rajnikant Ratan Tata Virender Sehwag

Would you buy a your favourite star A matured consumer The Indian youth may have their favourite brand endorsers, but it’s matured enough not to fall into the trap to buy a product only because Amitabh Bachchan or Katrina Kaif is endorsing it

Pitch | September 2012

PRESENTED BY

YOUTH BRAND SURVEY 2012

Who is your favourite brand ambassador - Female?

21%

14.7%

Despite her motherhood, the Indian youth still put Ms Rai high on their favourites’ list

Aishwarya Rai

7.9%

The girl next door

Katrina Kaif

product only because is endorsing it? 1.6% Yes

18.7%

79.8%

Pitch | September 2012

Can’t say

The actress garners more following than Mr Bachchan himself. Her girl-next-door image wins many a youth’s hearts

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Anushka Sharma Sania Mirza Vidya Balan Juhi Chawla Sania Nehwal Bipasha Basu Hema Malini Kajol Madhuri Dixit Shilpa Shetty Sonakshi Sinha Aayesha Takiya Anjali Sahani Karishma Kapoor Kiran Bedi

Priyanka Chopra

6.3%

Kareena Kapoor

4.4%

Deepika Padukone

PRESENTED BY

COVER STORY

YOUTH BRAND SURVEY 2012

Do you have loyalty towards brands? The loyalty factor More than half of the youth respondents claim to be brand loyalists. Another good percentage of 38, have a balanced view who have a probability of being disloyal to brands

Highly Disloyal

9.3%

Will you ditch for discounts? Somewhat Disloyal

Loyal

52.7%

38%

(Look at graphs below) A good number of nearly 4 in 10 youth would ditch their favourite brand because another brand is offering great discounts. But, ditching is prone to happen amongst claimed loyalists too. While highly movable/disloyal customers have obvious high chances of ditching a brand, the medium or low disloyal customers are also prone to switch the brands as and when required. This is a trait unlike the west where the loyal customers show very low chances of ditching a brand. The Indian data shows every fourth loyal customer can switch with ease while every second loyal customer has equal chance of ditching a brand if they get a better value; if not the brand.

Would you ditch your favourite brand because another brand is offering a great discount? Ditching chances

Overall

27.7%

29.4%

Ditching chances amongst the

Highly Disloyal 14.3%

Ditching chances amongst the

Somewhat Disloyal 20.8%

23.8% 42.9% High chances of ditching

61.9%

Medium chances of ditching

54.2%

25%

Ditching chances amongst the

Loyal

21.6% 35.1%

43.3%

Low chances of ditching

Pitch | September 2012

YOUTH BRAND SURVEY 2012

Pitch | September 2012

BOOK EXTRACTS

DAIRY MARKETING YOGHURT

Freezing opportunity Will yoghurt, the western version of the Indian dahi, find place on the Indian dining tables? What are marketers doing to cultivate the taste? By Arshiya Khullar

or the longest time, plain yoghurt, better known as ‘dahi’ has been part of the staple diet of Indians. This traditional and essential part of the meal is now available in a new avatar - it is frozen and flavoured yoghurt that Indians are now savouring. Traditional yoghurt based desserts like Shreekhand have moved over to make way for these reincarnations of good old ‘dahi’. Pitch takes a closer look at the current trends in the industry and the road ahead. The recent past has seen a deluge of players entering both the packaged yoghurt and freshly served yoghurt space. While popular international yoghurt chains are now expanding their footprints into the Indian market; riding on the healthier, guilt-free dessert plank, dairy brands are also launching their own variants of yoghurt to suit the Indian palate. Cocoberry, launched in 2009, was the first brand to retail frozen yoghurt in the country, at a time when both awareness and acceptance of this low-cal dessert

was at its bare minimum. Fast forward to 2012, and you have the Canadian yoghurt brand, Kiwi Kiss in the South market, US’ Red Mango, and other players like South Korean major, Yogurberry, and American player, Pinkberry nursing similar plans. On the other hand, domestic players are adding a new taste to this category. While Amul has launched its frozen yoghurt brand - Amul Flaavyo, packaged fruit yoghurt is also being consumed with relish. Nestle offers a range of fruit yoghurts Nestle Real Fruit yoghurts in mango and strawberry flavours and Nestle Junior Daheez for children, while Mother Dairy’s fruit yoghurt comes in flavours like blueberry, raspberry and plum. Whisking health in a cup With rising disposable incomes and health consciousness, this tangy combination of ice-cream with probiotic yoghurt is rapidly finding flavour among Indians. Yoghurt is classified under Health & Wellness (H&W) food segment in India. According to management consulting firm, Technopak Advisors, the Indian packaged yoghurt market was estimated at US$ 135 million in 2011, is growing at a CAGR of 18-20 per cent, and is poised to reach US$ 260-280 million by 2015. While these figures signal the lucrative potential of this industry, the

positioning of these yoghurts still remain hazy. Are these an in-between snack, a quick meal or a healthier desert offering? Red Mango positions itself as a health QSR, and its portfolio also comprises smoothies, sandwiches - ‘Power Smoothies’, ‘Probiotic Parfaits’, ‘Gourmet Waﬄe’, to name a few. For GS Bhalla, Founder, Cocoberry, yoghurt is an anytime of the day product. “Majority of this segment perceives yoghurt as a healthy substitute to traditional deserts or ice-creams. We also see a lot of kids consuming Cocoberry who are never aware about the health benefit; however, they are inclined towards its taste. And definitely due to its faster preparation process, it has been considered as a quick meal option,” he says. Cocoberry also provides an assortment of health and wellness foods such as smoothies, sundaes, frozen yoghurt parfaits (a breakfast option), beverages, sandwiches, and more recently introduced frozen, packaged berries. For packaged yoghurt brands, Nestle and Mother Dairy, yoghurts are essentially about healthy options at any time of the day, and can be consumed as a light snack or a meal. In terms of pricing, international chains are premium and costlier than the packaged yoghurt. A 100 gm pack of Nestle Fruit Yoghurt would cost ` 25. Amul and Mother Dairy have a similar price structure. On the other hand, Cocoberry’s Bhalla claims, his brand to be a premium

From a marketing standpoint, most yoghurt players rely on sampling and direct engagement activities to appeal to the taste buds of the discerning Indian customer 26

Pitch | August 2012

product at reasonable prices and says that the pricing begins at ` 32 while other players offer an average minimum price of ` 65-70. However, with consumers’ growing interest in this food category, most brands are starting to offer smaller packs with lower price tags to penetrate new markets and consumer segments and increase the volumes of products in the Indian cities. A sweet ride? The yoghurt industry in India is still in its infancy, and entry of more players will only help to grow the size of the entire pie. At the same time, however, with most premium yoghurt chains having similar look and feel, and even a name, in some cases, brands need to carefully map out their differentiation strategy. Moreover, do these chains run the risk of losing out to cheaper yoghurt variants launched by Indian brands or do the two cater to entirely different target segments? Conversely, do domestic brands face threats from these well established global biggies? Most players seem to agree that frozen yoghurts and fruit yoghurts are separate categories and advent of more brands will only increase exposure and recall. Subhashis Basu, Business Head, Dairy Products Division, Mother Dairy goes on to add. “Stirred fruit yoghurts and frozen yoghurts are two different categories. Fruit yoghurts are another form of Indian ‘dahi’ with fruits, where as frozen yoghurts are closer to ice-creams.” Red Mango, on its part, is banking on the innovations it is bringing to the Indian market, both in terms of the product portfolio and ingredients as well as store dynamics. “We’re another first of its kind in India, on the same lines of flagship stores in USA, which is the self service concept. This DIY (Do it yourself) concept is new to the India market and has been well received,” states Rahul Kumar, CEO, Red Mango. Cocoberry’s Bhalla is of the opinion that the larger players are entering the packaged yoghurt segment, whereas his brand operates in the retail space. Most of these brands are also pursuing

Pitch | September 2012

cities over the next three years.

“Majority of consumers perceive yoghurt as a healthy substitute to traditional deserts or ice-creams” GS Bhalla Founder, Cocoberry

“The concept of functional foods will appeal to masses only if the taste of the product is acceptable to them” Subhashis Basu Business Head, Dairy Products Division, Mother Dairy aggressive expansion plans, on the retail front, to cast a wider net and command a larger share of the growing pie. Red Mango is currently situated in five locations in Delhi/NCR region and plans to open 12-15 stores by next year, with focus on urban metropolitan cities like New Delhi, Mumbai, and Bangalore, among others. “In the next five years, we have a target to open 100 stores pan India,” says Kumar. On the other hand, Cocoberry, with a presence across 50 outlets is also aiming to open 200 outlets across 25

Healthy, yet tasteful? Many consumers also hold the belief that healthy and pro-biotic offerings often lack taste. Changing such a perception can also pose a formidable challenge to these players. While Himanshu Manglik who heads the Corporate Communications at Nestle disagrees to having received such feedback, Mother Dairy’s Basu feels that due weightage needs to be given to taste and product experience. “We believe that the concept of functional foods will appeal to masses only if the taste of the product is acceptable to them,” he adds. A new product usually witnesses considerable traction and sales on account of first-time testers, and there are chances of the initial fervour dying down in the subsequent stages. According to industry players, the same principle cannot be applied to the frozen yoghurt industry. Oldest player, Cocoberry, is the market leader with over 80 per cent market share in this segment. Moreover, if the fan base on social networking sites is any indicator of a brands’ connect, Cocoberry, with 1,55,000 fans on Facebook claims to have the largest fan base in the world for any frozen yoghurt brand. Marketing strategy From a marketing standpoint, most yoghurt players rely on sampling and direct engagement activities to appeal to the taste buds of the discerning Indian customer. A substantial portion of Red Mango’s marketing budget, for instance, has been parked for promotion. While digital marketing and social media will be the prime focus of the brand’s strategy for the first few months, mall activations and ongoing promotions will take precedence thereafter. For Mother Dairy, apart from ATL initiatives and point of sales visibility, the brand also engages in sampling activities and cross category promotions, in traditional and modern retail. n -arshiya.khullar@pitchonnet.com

BOOK EXTRACTS

YOUTH MARKETING PVR

Bowl over With the launch of bowling lounges branded as BluO, PVR is looking to target the health conscious youth. Will the bowling trend catch up? By Ruchika Kumar

inema chain major, PVR, is on an expansion drive with four PVR BluO lounges slated to be launched by 2012-13 in addition to the existing three. With rising health consciousness among consumers, the marketing agenda is to revive bowling as a fitness sport with a ﬂavour of fashion and Bollywood. Hence, the company recently signed on tinsel town’s newcomer Nargis Fakhri as the brand ambassador and is investing ` 1 crore per centre in brand building efforts and marketing activities. PVR BluO is now looking at entering newer geographies, particularly mini metros, with an aim to garner ` 60 crore as turnover by the next fiscal. Apart from the three centres in Delhi, Gurgaon and Bangalore, the company is mulling to set shop in Pune, Chandigarh and Ludhiana with a second addition in Bangalore. Currently, the company earns around ` 15 crore from the three existing centres. In terms of investments the thumb rule cost per set up is about ` 80 lakh per lane (for example, if it is a 20 lane centre it will be approximately around ` 16 crore). For the record, Gurgaon is a 24 lane lounge, while the Delhi and Banglore ones are 26 and 27 lanes respectively. Hence, the approximate cost falls between ` 80-85 lakh on an average, minus 10-15 per cent of the CAPEX required to start. Bowled over BluO seems to be a logical extension of the brand’s core business of cinema as India is an entertainment driven country. Added to this is the sudden rise in the mall culture, which has helped concepts like bowling alleys and other amusement projects get a completely different edge and feel. Hence, PVR is leveraging its brand equity in the cinema industry for its retail business and attributes

the push to the 35 million audience it gets at its cinemas. “PVR cinema is always been talking to a discerning audience. In fact we introduced our audience to BluO through in-cinema advertising and branding. We are

“We introduced our audience - the entertainment-seeker - to BluO through in-cinema advertising and branding” Gautam Dutta COO, PVR

talking to the same customer, who is an entertainment seeker,” shares Gautam Dutta, COO, PVR. However, in the early ’90s when bowling had entered the Indian gaming industry as a recreation option along with pool and snookers, it witnessed a tepid start. So, how is PVR ensuring the revival of interest in the game among consumers now? Dutta says that infrastructural developments like the mall culture in metros and mini metros have changed the retail landscape of the country. PVR has found an untapped opportunity into the changing psyche of consumers who are looking beyond just watching movies. Hence, the company has augmented the idea of the game and positioned it as a fashion bowling concept. “Bowling is positioned as a sport in India, but India is not really a sports watching or playing nation and more into leisure and entertainment. So, we took away the serious part of the sport and added fun, fashion and leisure to the game,”

Pitch | September 2012

Dutta adds. He goes on to say that the manner T20 has changed cricket by adding a glamour quotient to the sport, is what BluO is trying to do to the game of bowling. Sporting a new look For instance, according to the COO, the 24 lane bowling alley in Ambience mall in Gurgaon represents state of the art infrastructure with cosmic lighting, enter-

share. Moreover, this is a unique concept where PVR holds a monopoly situation,” he stresses. For the record, BluO as a fashion bowling concept was born in Thailand, as a brand from Major Cineplex. Inspired by the same, PVR brought the concept to India in a JV with the Thai company, with PVR having 51 per cent stake. However, the Indian partner added concepts like tattoo parlours and Xbox lounge, to enhance consumer experience. Concepts like Xbox and Pro Shop selling bowling sports related merchandise, add to the USP of the concept, while building traction for the company. In terms of TG of the brand, it cuts across all age groups, particularly between eight year old kids and tapering off to around 4045 year olds, including corporates. “Audiences keep changing throughout the day.

Getting the ball rolling The company claims to have aggressive marketing and branding plans. For example, it keeps offering special menus like ‘rainy season cutting chai and pakoda festival’, corporate bowling tournaments, pageants, catwalks, music festivals, launching of music bands and more. It has tied up with Lufthansa to launch a corporate bowling tournament, and in the past had tied up with Woodland, Puma and Lacoste. In terms of customer loyalty enhancement, the brand gives discounts and deals to niche corporate groups like Pepsi and Lufthansa employees. In terms of ATL, the company invests in mass media, including print like HT and Times of India and TV channels like MTV and Channel V. It is also active on Facebook. In addition, it launched an Airtel Friend Zone

BluO as a fashion bowling concept was born in Thailand, as a brand from Major Cineplex. Inspired by the same, PVR brought the concept to India in a JV with the Thai company

The Plan New geographies PVR BluO is looking to enter mini metros, with an aim to garner ` 60 crore as turnover by the next fiscal

Game at a cost A game of bowling in the morning costs ` 100 for an hour and ` 200-225 during the evening prime time. Food is also available at prices in the range of ` 100-300 tainment aspects like music, world cuisine, Xbox gaming lounge, tattoo parlours, merchandise shops and much more. The company isn’t threatened by replication as it feels that its affinity to Indian cinema and marketing gives it an edge over others. Thus, in terms of market share Dutta says that the company happens to be the only one in this domain. “Though it is difficult to assess the share, we define the market and in that case we have a 100 per cent market

Pitch | September 2012

As the day begins we have professional bowlers in the morning, little later in the noon school kids and college goers throng the place followed by young corporate professionals in the evening. And towards the end of the day we see families coming in. Hence, the brand has been able to straddle across various TGs because of the nature of the concept,” he adds. The brand claims to get a footfall of around 2,100 per centre average on a daily basis on a week day, which goes up to 3,000 on weekends. And according to Dutta all footfalls translate into sales whether that comes from the game, food or liquor. Thus, the location strategy is in line with its TG. For Dutta these have to be destination malls, with conducive index i.e. propensity of the consumer to be able to adapt to such a format and willingness to pay. However, despite the starry touch to the lounges, the sport is not very overpriced. A game of bowling in the morning costs ` 100 for an hour and ` 200225 during the evening prime time. Food is also available at prices in the range of ` 100-300.

within the lounges, wherein pictures of the bowler in action are taken, without the customer’s knowledge with cameras attached on top of the lanes. At the end of the game the customer is handed a code along with the bill to move into the zone and see those pictures, which can be uploaded there and then on social media websites. Hit and miss Overall Dutta feels that since entertainment is a recession proof industry, there is ample scope for the brand to expand; however, the only challenge comes from lack of infrastructure in smaller towns beyond metros and mini metros. “Smaller cities lack that and to grow we need malls and space. Beyond three-four years when we would like to expand into these towns, it will be quite a task for us if infrastructure is not in place,” says Dutta. Till then the company is focusing on BluO, mapping the course of its future in a country, which had earlier rejected the idea of the game. Will the lounge be able to sustain the consumer’s enthusiasm, is something to look out for. n -ruchika@pitchonnet.com

COLUMN

Fractures in display advertising Display advertising on the internet, as we know it today, is about to break down!

Nitin Chowdhary

Business Head, PrecisionMatch

igh impact Display advertising for products such as Samsung’s Galaxy S3 or Renault’s Duster showing videos or product animation on popular websites such as Indiatimes.com or Oneindia. com are now a part of our Internet experience. Display advertising on Internet remains a popular vehicle for marketers to deliver a compelling communication to a prospective customer along with Search and Social advertising. However, the way Display advertising is used for marketing, how relevant it is made to consumers, and is bought and sold is starting to develop significant fractures that will limit its effectiveness unless digital marketers adopt newer techniques already tested in other markets. What are the problems? Internet in India is becoming big. We are the third largest base of Internet users after USA and China, with well over 100 million unique users that generate approximately 70 billion page views every month. This gives advertisers potentially 2.5 trillion ad impressions (assuming on average three ad impressions per page view) every year. This is a massive number given that top 10 digital advertisers, that together comprise just above 30 per cent of the market, each buy around 5-10 billion impressions in a year.

Given this supply, buying the right impressions is critical because no matter how big your digital advertising budget is, you are not going to be able to carpet bomb the medium. Display advertising is not perceived to be driving ROI to the same degree as Search in a performance marketing context. This is surprising because Display as a format has the necessary real estate for the marketer to deliver a compelling communication to a prospective customer. In comparison, both Search and Social offer relatively restricted creative capabilities. Clearly, where these other formats win in spades is in targeting. Search delivers ads in context of intent displayed by the user. Facebook delivers ads through demographic and interest based targeting. Clearly, Display advertising has to start delivering ads in a mechanism that is more targeted to deliver performance in the region of Search and Social. Independent research by eMarketer.com done in other geographies indicates that reduced ad relevance increases consumer mistrust. As tools such as Google, Facebook, Digg and Reddit enable consumers to discover long tail content at scale, content consumption on the Internet in India is going through the same rapid fragmentation experienced elsewhere. Content sites and blogs that are specific to smaller interest

Display advertising has to start delivering ads in a mechanism that is more targeted to deliver performance in the region of Search and Social 30

groups are starting to account for a significant portion of our time on Internet e.g. Indiaparenting.com for parenting issues or Tarladalal.com for aspiring master chefs. According to comScore data, tail publishers now account for 42 per cent of non-Facebook page views up from 38 per cent a year back. This fragmentation of attention presents a challenge to digital marketers and media planners. Simply using reach metrics to buy Digital ad space on the large or head publishers will start reducing advertiser’s exposure, as 42 per cent of the user attention is now captured by the tail publishers. Finally, Internet has to be approached differently in context of media planning than is being done today. Internet is not a reach vehicle. TV (cable and satellite), given its reach of around 700 million unique viewers in India will win the scale and the reach battle against Internet any day. Internet’s strength lies in addressing relevant audiences with significantly lower spill because of its ability to specifically market to a segment as narrow as a single consumer. Most media plans on the brand side (non e-commerce) tend to use Internet as a blunt reach oriented instrument, which makes it expensive and labor intensive. Internet is predominantly a direct marketing channel that will always be evaluated on ROI even if the contract is on CPM and not a low funnel performance metric. TV will be used by marketers as a reach vehicle because of its lower cost per unit to push potential buyers into the funnel.

Pitch | September 2012

Display ad technology changes The state of the art in Display ad technology has moved forward significantly in recent years. The big leap forward in the digital eco-system from a technology and operational perspective has been the rapid and massive adoption of RTB or Real Time Bidding in the western markets. Essentially, this means that the publisher will allow multiple advertisers to bid on every impression, and the highest bid wins the right to place an ad in that impression in an automated electronic process very similar to the stock market. The benefits of this change are significant. The advertiser is not forced to buy all impressions as part of a fixed contract or to use a set of ad placements as proxy for audience as they do today. This change

Pitch | September 2012

allows them to evaluate each impression in real time and identify the ones that they would like to buy (usually on the basis of some data or information that they have in form of a cookie pool) so that they buy exactly the audience that matches their campaign objectives. This ultimately has the effect of reducing waste, making digital marketing more effective and enabling more spend to flow into the space. The publisher can enable more channels in a logical fashion with significantly reduced conflict to increase revenue. As an example, letâ&#x20AC;&#x2122;s consider a publisher that has premium (committed impression delivery) and performance (ad networks, non-guaranteed delivery) advertisers. The publisher can open its inventory to both sets of advertisers at the beginning

of the month and potentially improve revenue when the performance advertisers value impressions above the premium advertisers. The publisher can also adjust access to both later in the month on the basis of deliveries remaining on fixed impression contracts. The RTB platforms also have the ability to show different ad versions to different user segments in the same campaign based on what data is known about them. This enables advertisers to squeeze out incremental (to targeted advertising) performance from display advertising. The digital Display eco-system, as shown in the figure below (the now ubiquitous Display Lumascape), has started to consolidate in four large areas for efficiency:

COLUMN SSP or Supply Side Platform: Large pools of display inventory that is ready for being sold or in other words, seeking monetization, either directly from publishers or through ad networks. SSPs deliver functionality such as managing minimum CPMs, inventory quotas to be released to specific or anonymous bidders, blocking malware, protecting data. This platform allows publishers the necessary controls to work with their channels to reach optimum revenue for their inventory. Most (if not all of these platforms) use RTB. Now, a number of Exchanges offer the same set of features as SSPs. So increasingly these two segments will align and consolidate. Those that are active in India include AdX, Rightmedia, Rubicon, OpenX, Zedo, AdMeld, Pubmatic etc. DSP or Demand Side Platform: Platforms that have comprehensive set of features for advertisers to execute and report on their display campaigns across multiple publishers. DSPs essentially consolidate large amounts of demand from advertisers, agencies and ad networks i.e. campaigns seeking inventory for delivery. Most

Some publishers may create private exchanges to which advertisers are allowed by invitation only. They will also look to capture their audience data and integrate it with third party data form of a tagged and indexed cookie pool) in the DMP. This information is then used to better target their Display campaigns, improve ROI and reduce spill. Publishers also store their first party data integrated with third party data in the DMP to understand their audience in terms of demographics, interests and value. This data is then used to better engage and extend audiences and also to deliver their direct sold campaigns. This integrated pool of audience data is a much more robust and accurate way of buying audience rather than the old method of using placement as a proxy. PrecisionMatch is the only provider of effective third party audience data in India. The impact on performance through targeting is significant, to say the very least. Data targeted campaigns have shown ability to perform up to 3X better than regular category targeted display campaigns on CTR (Click Through Rate).

The impact on performance through targeting is significant. Data targeted campaigns have shown ability to perform up to 3X better than regular category targeted display campaigns on CTR DSPs are integrated with all the SSPs and Exchanges so as to offer their advertisers a broad choice of inventory sources. DSPs active in India include InviteMedia (Google), Appnexus (via a few ad networks), Brandscreen and Atom (Komli). Agency trading desks active in India – Annalect/Accuen (OMD) and Xaxis (WPP) – also release consolidated demand though DSPs. DMP or Data Management Platform: This represents a big leap forward to enable advertisers and publishers to better understand their audiences. Advertisers store first party data (from sources such as website/ CRM) and third party data (from providers such as BlueKai, Exelate and Targus in the

Dynamic Creative Optimisation or DCO: While targeting the campaign to the right audience increases engagement, there is opportunity to squeeze out even more performance by customisng the creative to create different ad versions to suit various sub-segments. This is important because all potential customers value different things about every product based on their interests and profile. As an example, in context of Display advertising for an automobile model, some potential buyers will like it because it runs on diesel and others because of its SUV like shape or a promotion available with it. DCO provides this capability to create and manage multiple creatives.

DCO has been demonstrated to show increase of up to 300% on CTR when compared to campaigns without creative optimisation. How will this change life as we know it? Increasingly, advertisers who adopt these new techniques successfully will make Display advertising a part of their performance or direct marketing campaigns. This will create multiple benefits for these advertisers – they will be able to use the impact of large ad formats of Display as part of their campaigns. In order to achieve this, advertisers will significantly scale up their use of audience data through first and third party sources to target audiences better. They will start differentiating between campaigns that require guaranteed delivery – essentially launches and announcements oriented and non-guaranteed delivery – essentially sustenance oriented. While both types of campaigns will be delivered via DSPs, the publisher arrangements used for both will be different. Advertisers will use dynamic creatives at scale to create highly customised and adaptive Display campaigns that will increase performance further. Large publishers will increasingly start selling their remnant inventory via Exchanges/SSPs to DSPs. Availability of quality inventory on RTB will continue to rise at a pace and performance marketers with data will also be able to access quality inventory in a non-guaranteed fashion. Some of the larger publishers may also create private exchanges to which advertisers (bidders) are allowed by invitation only. Large publishers will also look to capture their audience data, integrate it with third party data to improve understanding, segmentation and monetisation. n

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

Pitch | September 2012

BOOK EXTRACTS

KIDS MARKETING LONDONDERRY

A child at heart

Parle enters the confectionery market with Londonderry. Will it be able to beat Alpenliebe? By Arshiya Khullar

onfectionery player Parle Products has launched a new candy, Londonderry, to mark its presence in the lacto segment and is relying on a blend of innovative marketing campaigns and product centric differentiation tactics to create a flutter. The caramel and milk candy targets kids in the age-group of 4-14 years as well as young adults and teenagers between 15-24 years. While it is competitively priced at 50 paise, the brand has positioned the candy as a premium offering in terms of its look and feel. With Londonderry, Parle makes its entry into milk candies, a space which has till now been dominated by Perfetti’s Alpenliebe. However, this isn’t Parle’s first tryst with this segment. Last year saw the launch of another milk candy, Lacto Bite, which was subsequently discontinued. On being quizzed about the reasons for LactoBite’s demise, and the launch of a new brand, Amit Thakur, Product Manager, Parle Products says that the intent was to break away from clutter prevailing in the confectionery space and have a name, packaging, and communication that would be more appealing. The overarching objective behind the launch is to set Parle’s foot firmly in this vertical, something which Lacto Bite was unable to achieve perhaps. For Thakur, it is more to do with the requirement of the company and the market. The brand portfolio of Parle includes Melody, Mango Bite, Kaccha Mango Bite, and Poppins to name a few. “We promote different products at different points of time. Whether it is the hard boiled candy segment where we have Mango Bite or the toffee segment which has Melody, we are one of the leading brands. This is not the case with the lacto category,” adds Thakur. The confectionery market is characterised by an impulse-driven purchase because of the low price-points as well as having majorly kids as its target audience, and as a result, top of mind recall becomes crucial. Therefore,

for a confectionery brand, point of purchase marketing assumes significant importance so that recall is converted into sales. Parle, for Londonderry, is relying heavily on television to maximise reach, followed by a combination of outdoor and cinema in certain geographies. Television, on-ground activations and online media would represent the core communication strategy. The brand has got three TVCs created by Everest Brand Solutions. These commercials recreate the Irish town of Londonderry and have an international cast and crew to add to the intended ‘premium positioning’ of the product. Apart from the premium packaging and

“We wanted to break away from the clutter in the confectionery space and have a name that would be more appealing” Amit Thakur Product Manager, Parle Products

the attempt to give an international feel to the product, the brand name itself has got people talking. The uncanny resemblance to the name of a premium international ice-cream brand, London Dairy, cannot escape one’s eye. However, Thakur refuses to comment on the strikingly similar name. As per estimates, the confectionery segment in India, in volume terms, is close to 2.3 to 2.4 lakh tonnes annually and the lacto segment is 40,000 tonnes. Parle, with an overall 18-20 per cent market share, is targeting a 1520 per cent share in the lacto segment. In terms of investment, Parle is looking to spend around ` 5-6 crore for this new product, of which, 90 per cent is dedicated towards marketing. As far as the media mix goes, television takes the lion’s share of 70-75 per cent. Southern markets are huge for lacto, and Parle will be using advertising in cinemas to attract audience in places like Tamil Nadu and Kerala. Phase two will see the brand targeting northern markets like Delhi, Bihar, and Uttar Pradesh as well. For distribution and retail purposes, Londonderry will be using the brands’ existing network of 20-30 lakh retail outlets and doesn’t have plans of expanding the network this year. The confectionery vertical of Parle Products has witnessed a growth rate of 18-20 per cent last year, and with this new launch, it is targeting the same per cent.  -arshiya.khullar@pitchonnet.com

Pitch | September 2012

LIQUOR MARKETING VI-JOHN

Tipsy John

Will shaving products, manufacturer, VI-John’s entry into the liquor category work? By Aditi Malhotra

anufacturers of personal care, skin care and cosmetics products, VI-John, announced their foray into the liquor business, recently. Harshit Kochar, Director, VI-John, says that the impetus of inorganic growth has driven this decision. And, this is only to facilitate a diversification from the steady and successful FMCG business with which it has gathered significant credibility for quality and affordability. In a 50-50 Joint Venture with Mahou San Miguel, Spain’s beer major, VI-John announced two if its three brands namely, Dare Devil 10000 Premium Strong Beer and Mahou Cinco Estrallas. Previously having catered to urban and rural masses alike, is VI-John yet again following the strategy of bridging the gap between the urban and rural markets? To this Kochar says, “In India there are two huge categories of quantity consumption, for beer, at the bottom of the pyramid. Simultaneously, with Mahou San Miguel, we’re bringing a European standard. Founded in 1890, they are sixth largest in the world and are number one in Europe. We want to use the benefits of their brand and cover the elite class as well.” And Alberto Rodriguez-Toquero, Managing Director of Mahou San Miguel is only pleased that Mahou’s expertise in the beer segment has aptly intersected with VI-John’s understanding of consumers in India. Going by this broad based catering, Daredevil is priced between ` 90-` 100 for the 650 ml bottle and ` 40-` 50 for the 330 ml. Mahou is priced a notch higher with the 330 ml quantity variant costing anywhere between ` 130-` 150. VIJohn is benchmarking the lager variant amongst premium brands like, Corona while the Strong variant is slated to ace the category that currently comprises of

Pitch | September 2012

brands like Kingfisher Strong, Haywards and the Bullet brand under Kingfisher, amongst others. They have also clearly segmented the target audience for both the brands. “While Dare Devil is targeted at bottom of the pyramid, Mahou is meant to cater to SEC A+ and A,” says Kochar.

“While Dare Devil will be targeted at bottom of the pyramid, Mahou is meant to cater to SEC A+ and A” Harshit Kochar Director, VI-John

In this first business plan for this venture, VI John is looking at making the brands available in North India across the states of Bihar, Rajasthan, Uttarakhand, Haryana and Uttar Pradesh. “The plan for the second year comprises of a pan India approach; this, along with opening up more breweries. Right now, we’re looking at Silvassa and Andhra Pradesh amongst other locations.” The heavy transportation cost, especially for beer, explains Harshit, is driving the decision to multiply the number of breweries, which can ultimately cater to the surrounding markets. Currently, VI John runs Arian Breweries as a subsidiary. And, with the current joint venture (JV) with Mahou San Miguel, the company owns a brewery located in the Alwar district of Rajasthan. “Spread over 21 acres, the plant is fully automised and has a capacity of 250 hectalitres,” details Kochar. As far as distribution is concerned, he confirms that Mahou will be available for distribution within seven days in the capital while for Dare Devil, they are yet to procure a license for distribution in the capital. VI John has tactically marketed and done well in the past by riding safely on star power. Shah Rukh Khan and Sonali Bendre have been able to garner a high degree of visibility and popularity for the brand. Refraining from naming the prospective faces for its liquor business, Kochar says, “We are talking to a few people and are looking at freezing this soon. We did finalize, but because of the controversies surrounding their backgrounds, we’ve had to pull ourselves back. But, we’re going to seal this very soon.” Currently, VI John has five brand ambassadors tucked in their kitty.  -aditi@pitchonnet.com

BOOK EXTRACTS

SOCIAL MARKETING TATA TEA

A case for ‘Social-cause’ Tata Tea’s ‘Jaago Re’ campaign has come a long way. With many states slated for assembly elections soon, the campaign urges citizens to exercise their right to vote. How’s the journey been? By Abhinav Mohapatra

Social stimulation Tata Tea was launched with a communication on its product functionality of ‘garden fresh.’ From there it has moved to the current campaign since 2007, which is about bringing important social issues to the forefront of societal mindset. “The campaign has worked on two levels: by intertwining the themes of civic consciousness with that of the physical and psychological boost that a cup of tea delivers. The ‘Jaago Re’ campaign drives synergy by providing a common, unique umbrella message of ‘social awakening’ that brings its national brands together,” says Vikram Grover, Vice-President, Marketing, Tata Global Beverages. He adds that, ‘Jaago Re’ has not just reﬂected the nation’s mood, in many ways, it has been ahead of the curve and in fact shaped the nations mood. “Causes like corruption etc were taken up far before they became popular topics of discussion,” he says. The latest TVC builds on giving due importance to issues, big or small. Having addressed the youth, the campaign has now broad based its footprint and begun to address the woman of the house, more

The tea cup There’s more room for branded tea in India

ire tea market: `1 Ent 9

rom cartons to polypacks, heritage plantation to a branded beverage company, ‘Gaon Chalo’ to ‘Jaago Re’, Tata tea has come a long way since its inception in 1986 when the packaged tea market was dominated by one large player with over 70 per cent market share. Tata Tea claims to stand for a way of life for its consumers and has transformed the way beverages are marketed through its ‘Jaago Re’ campaigns. Striking a chord with the youth, the tea brand launched a series of campaigns over the last four years that wove in the theme of social issues.

ore turnove 0 cr r 0 ,5

55%

Branded Market

Source: ASSOCHAM

squarely in recognition of her role as a pivotal agent of change in this country. But what has been the philosophy behind the ‘Jaago Re’ campaign? Grover explains that ‘Jaago Re’ as a campaign attempts to facilitate social awakening by providing a platform and opportunities to channel people’s efforts and skills. But has the brand been able to make a shelf space in the homes of its audience? Shushmul Maheshwari, Chief Executive at research agency RNCOS, points out that the advantage that the brand has had is that it has always been tied as a household brand. “The Tata Salt comfort feeling plus the comfort feeling of Tata in other products, which gives it an edge over others who want to enter this space. Therefore, it also helps the tea brand to get into the mindshare of the consumer, hence, increasing the global

brand recall. About the campaign, he adds that ‘Jaago Re’ campaign is a general jargon that helps, if one looks at the basic necessity of tea whether rural or urban. “It passes on the message that the basic need of the tea is to get fresh,” Maheshwari adds. Voice of young? This brings us to the question, why has Tata Tea taken the route of social issues for its campaigns? Grover says that Tata Tea campaign was launched to redefine the role of tea from being a mere physical rejuvenator to a medium of social awakening and has been a wake-up call for the country’s social-minded youth. “We believe that the

“The campaign is a success because it builds upon the strengths of not just the Tata brand but our beliefs within the organisation” Vikram Grover Vice President, Marketing, Tata Global Beverages

Pitch | September 2012

Top of mind recall? According to ASSOCHAM, tea in India presently has a CAGR of 15 per cent at an annual turnover of ` 19,500 crore, which is estimated to grow to ` 33,000 crore by 2015. The branded tea market accounts for nearly 55 per cent of the total market and is growing at about 20 per cent while the unbranded market is growing at 10 per cent annually. Sridhar explains that Tata Global Beverages has been able to try to create a space in the minds of the consumer, because of its various product offerings in the same category in different geographies. For example it has been strong in the south with Kanan Devan. “From an advertising perspective,

Pitch | September 2012

Spreading the aroma Most of the advertising for the brand is primarily led by TV however Tata Tea claims to have a 360 degree communication approach, with focus both on BTL and ATL.

“Advertising is the differentiator for Tata Tea as it talks to a different genre of people and not only the housewives” Ramanujam Sridhar Founder CEO, Brand Comm

d growth by ate m

Est i

‘Jaago Re’ has been able to set itself apart and captured some attention. If one looks at advertising as an important variable in the marketing mix, clearly their advertising has been different and national,” he says. According to an ASSOCHAM report Tata tea leads the market in sales volume with a 20 per cent share while Hindustan Unilever is the current market leader in terms of sales value with over 20 per cent share. The brand claims to believe that change and disruption is at the heart of its DNA. In the 25 years of its existence Grover titles that the brand disrupted the category by creating the poly pack revolution, which led to the redefinition of the tea category and large scale conversion from commodity. He explains, “We launched the most successful new offering in this industry over the last two decades (Tata Tea Gold) here it was the product which was truly differentiated and based on a deep understanding of consumers. Over time we launched the most successful campaign that this category has seen and this formed umbrella messaging for all our Tata Tea brands. We created distribution initiatives that led the thought agenda, most notably ‘Gaon Chalo’.”

15 20

campaign is such a success because it builds upon the huge strengths of not just the Tata brand but also our beliefs within the Tata Global Beverages organisation. Because there is such a close fit there is a very high level of credibility and uniqueness attached to what we do,” he adds. Ramanujam Sridhar, Founder CEO, Brand Comm, feels that today’s youth is a lot more conscious about society and environment that older people. “This generation has a greater concern for social issues and from that perspective Tata tea campaigns have enabled youth, where other brands were talking to housewives. For example Red Label or Three Roses talked about freshness, they were talking to the older segment, with women being the decision makers etc. From many perspectives the advertising is different and has created an impact. But that does not mean that that is the way to go, what happens is that an encompassing campaign like this does not address some of the other brand offerings,” he adds. Since tea as a category is very deeply penetrated in India and it is consumed across various age groups, socio economic classes and different town classes. The brand claims its core target as the small town women who are leading the thought change in society today. Though Grover also claims that, youth is the heart of the brand. “One can think of it as the brand targets the young at heart who lead the change agenda in this country,” he appends.

` 33,000 Crore

Source: ASSOCHAM

“Different brands use different vehicles as primary mode of communicating for example Tata Tea Agni relies heavily on BTL communication in addition to the synergies driven by the ‘Jaago Re’ campaigns,” adds Grover. The brand’s communication also includes digital and on-ground activations. With the use of digital the brand has led the category agenda as far this space is concerned with the voting campaign that created a community of more than half a million in little time. Our digital philosophy has been all about enabling our TG to live the change. “The advertising is the differentiating factor for Tata Tea because it talks to a different genre of people not only the housewives,” explains Sridhar. The focus of many FMCGs has been the housewife and her immediate family with her zone of interest. “Therefore there is a difference between the latest campaign with the new campaign of Tata Tea about big and small responsibilities. One is in the same area, but talking to different people. If one is looking at a brand that is different from the clutter of other brands, I would think it is Tata Tea,” he adds. Grover on the other hand looks at a bright future and says that the industry continues to be a gold mine of untapped opportunity with us being leaders with a 10 per cent share of the overall pie (including loose). He adds that there continues to be huge scope for innovation that can fundamentally alter the industry structure and upgrade the tea drinking habits of consumers.. n -abhinav@pitchonnet.com

COLUMN

Five rules to market a premium brand Owning premium products is associated to status symbol, prestige and quality. Most people chasing premium brands aspire to have an image that will set them apart

Pooja Jain

Executive Director, Luxor Writing Instruments

roducts are created & categorised depending upon the need of the consumer. When it comes to market a premium product, the consumer tends to look for the utilities that are available in exchange of extra value charged for the same. Products that are meant for functional use when reach a class and gain an additional value; they fall under the category of “premium products”. Owning premium products is associated to status symbol, prestige and quality. Most people chasing premium brands aspire to have an image that will set them apart from rest of the crowd. Mostly these are upper middle and rich group of people wanting to associate themselves with brands that are beyond the reach of the generic consumers. The basic rules for marketing any product revolve around 4Ps of marketing – Price, Product, Place and Promotion. The success and acceptance of any brand depends on how the product is positioned in the market, what all tactics are used for its promotion, placement, creating the right image of the product, pricing the product rightly in contrast to other players. For a product to become premium, firstly one needs to understand that premium products are not purchased only for its core value. Thus it needs to pos-

sess a sense of exclusivity. The consumer would always be ready to spend that extra penny to get extra worth on a product. A premium brand must market itself in a way that it doesn’t dilute the brand’s image or the user’s sense of exclusivity and pride. Second important step is to identify your target market which basically includes identifying people who would be willing to buy a premium product at a premium price. However, it is important to mention that the targeted segment for the premium products is not price sensitive, the value of a product going up by ` 50 or ` 100 does not make much difference to them. The high pricing of premium products is used to enhance and reinforce a product’s luxury image. Whereas the buyers looks for a common connection that instantly strike the cords and make them feel akin to the product. Thus, price must determine values. Thirdly, Product differentiation is essential! A marketer needs to offer a meaningful difference to justify the exclusivity of the product on the basis of the services/qualities. It can be setting up the store’s ambience to set the customer mood, the unique placement of the product which instantly urges the customer to pick it. Giving a sense of pride, success and belongingness ensures

A marketer needs to offer a difference to justify the exclusivity of the product. It can be setting up the store’s ambience to set the customer mood or the unique placement of the product 38

that half of the battle is already won. As exposed, it should immediately occupy a distinct and valued place in the targeted consumer’s mind. Fourthly, a marketer needs to develop the image of the brand in a way that the consumer becomes loyal to it. When he thinks about the product, he should approach you. The brand personality should be such that it matches the expectations of the prospected buyer. Premium products are a matter of Soft marketing and to make it happen, products’ packaging, price, style of advertising and the nature must speak for itself. Finally, a marketer should apply a selective approach as far as the public and positioning is concerned. Premium products should be available at premium stores, heavy advertising and promotion is not required for the products in this segment but merchandising and personalised service to consumers is very critical. These five tips is the mantra to market your product successfully. For marketers, it is important to understand the pulse of their target audience. Whereas it is alleged that this section of buyers is marked to be the most sensitive but to realise Return on Investment (ROI) and to benefit business should be the main objective. 

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

Pitch | September 2012

DIGITAL SPUUL

Bollywood on demand Will the new online Bollywood movie streaming initiative garner enough audience? By Arshiya Khullar

ost of us look to online video streaming services like SideReel and Megavideo for watching the latest seasons of our beloved Western shows. But till recently, Bollywood fans did not enjoy such luxury, with DVDs being the sole alternate to watching movies in theatres. However, with the continual rise of video streaming sites providing Indian content, the trend is fast changing. One such player looking to penetrate into this relatively unchartered territory with a blend of differentiated content and customer experience is Spuul. Spuul, founded in 2010, but in operation since three months only, is a cloud-based streaming video service that allows consumers to watch Bollywood movies via web and mobile devices. This Singapore-based startup was founded by Sudesh Iyer (founder of Sony Entertainment Television in India) and S Mohan (Founder of Palo Alto-based Accellion and buUuk). It is an ad-supported subscriptionbased service that provides a concoction of free-to-view and paid movies. It currently has around 1,000 titles in its library, which is refreshed on a regular basis. The recent past has seen players entering both the linear and non linear space, with some offering their own content and others grabbing it from a number of platforms. Spuul faces competition from brands like ErosNow and Big Flix, on the paid side, along with YouTube’s Box Office Channel to name a few. For Prakash Ramchandani, South-Asia & India Head of Spuul, however, presence of more players will only help in growing this nascent category in the country. In terms of its format though, Ramchandani compares it to that of Hulu, an international OTT subscription service offering on-demand streaming video of shows and movies. To

Pitch | September 2012

create an account on the site, users need to log-in using their facebook accounts. There is free video on demand, which is ‘freemium’ content to generate a user base, a monthly subscription model wherein users need to pay $4.99 per month to watch unlimited premium movies, and pay per view-available at US$ 0.99 per movie for 72 hours of unlimited views. The affordability and availability of broadband speed and the phenomenal rise in the number of smartphone users in the country have provided impetus to the development of this industry. “There are around 40 million broadband users in India, of which

“Growing broadband usage and 3G on smartphones will fuel movie streaming” Prakash Ramchandani South-Asia & India Head, Spuul

1 crore have 1 MBPS plus connection. At the same time, smartphones have come to occupy 10 per cent of the total market and are likely to grow up to four times in the next few years,” adds Ramchandani. While, Spuul does not cater to any specific target audience in terms of demographics, it is eyeing both cell phone users and the ones who consume content online. While India represents a huge opportunity to the company, it also operates in several NRI countries. “In the international market, consumption on direct to home and satellite is very expensive and there are no legal Indian content sites,” says Ramchandani. Countries like UK, Australia, Middle East, and US are some of the markets where Spuul is concentrating its focus. India, at present, is contributing 40 per cent to the site’s total revenue. To create awareness and connect in India, Spuul is relying on a digital led marketing strategy. It has deals with CricketInfo and Howzatt among others. It is also looking to forge partnerships with telcos. Among traditional media, it is considering a radio campaign in the near future. To further expand options for watching movies on the go, Spuul recently launched an iOS app for the iPhone, iPad users and is in the process of launching an Android one as well. Ramchandani does not divulge details about the investments that have gone into this venture in India or the marketing budget. In terms of the challenges that digitising Bollywood faces, while Ramchandani pegs piracy as the greatest obstacle, he also considers content cost to be a constraint. Spuul is also looking at offering television content and live news in the near future.  -arshiya.khullar@pitchonnet.com

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BOOK EXTRACTS INTERVIEW S RAJENDRAN

C maker, Acer recently went through a holistic brand transition, which encompassed a change in their product portfolio, a store overhaul, a new tagline, and a fresh 360-degree brand campaign. In an interview with Arshiya Khullar, S Rajendran, CMO, Acer, talks about this makeover and the company’s expansion plans into the commercial sector as well as Tier III and IV towns. Excerpts…

What are the core aspects of the revamp? In the last one and a half years, we have realised that there is a multiplicity of changes happening. Firstly, the consumer buying behaviour is changing in terms of adoption and usage of gadgets. Secondly, in tandem with this, we are seeing the IT hardware landscape changing. Consumers are

looking at having devices that talk about their personality quite boldly and use it to express themselves and push boundaries. Since the beginning, our brand philosophy is that we will break barriers between people and technology. To keep this philosophy contextual, depending on the consumer behaviour change, we have the new tagline - ‘Explore beyond Limits’. Apart from the tagline, we have also redesigned how the wording of ACER is used. In terms of the product portfolio, in May, we did a complete refresh of our entire notebook product line. We now have the E series, V series, M series, and S series. To give you an example, V5 as a product, has taken pluses from our first mover advantage in the Ultrabook segment last October. What are the activities that have been done as part of Acer’s new brand campaign?

mercial and social media presence as well. We scaled up the followers to around 36,000 which otherwise was hovering at 10,000. We also did BTL activities like engaged some schools to sing the national anthem and upload it to drive a feeling of patriotism. The new campaign, which has broken out only a few days ago, ties the brand ambassador more closely with the range of products that we have. What are the ATL and BTL activities that have been planned for this new campaign? In time, we will see expressions of this campaign in electronic media. There is going to be a television commercial which is slated to hit the market around the festive season. In terms of BTL activities, our Acer outlets are getting rebranded and will have a new look and feel. There will be new signage, in-

Consumers want devices S Rajendran | Chief Marketing Officer, Acer India As the first phase to the campaign, we launched our first activity with the London 2012 Olympics called ‘Stand by your Nation’. Acer has been the exclusive IT hardware sponsor and supplier for the Olympics. We embarked on this campaign to wish the Indian contingent luck for the Olympic Games. A 360 degree approach was followed for this campaign. There was a print campaign, we signed up Hrithik Roshan as the brand ambassador and there was a television com-

store merchandising, and new POP material. We have an existing base of 300 retail outlets which will get POP material. We have also invested in training. We are just concluding a 45 city training programme. Our focus has been on the last

Pitch | August 2012

mile of the customer touch point-the instore promoters, people who man the retail counters and so on. What is the kind of investment that has gone into marketing and communication, and how is it different from what was spent last year? Typically, whatever is our turnover, we tend to invest around two to two and a half per cent of our sales turnover on marketing. DataQuest and Gartner position us as a $600 million entity. If you compare it to last year, the base itself has gone up since we have been growing at 18-20 per cent every year. Last year’s turnover, like I said, according to DQ, was ` 2,500 crore and now we have crossed the ` 4,000 crore mark. This points out that the increase in marketing budget is beyond 25 per cent.

When it comes to the government sector, we can’t hold ourselves back but complain. Budgets and projects are there but decision making has come to a crawl In the commercial space, we are focused on BFSI, Education, which includes both professional colleges and smart class projects and the Government sector. Along with these, we have two more verticals- the Corporate and F&B. When it comes to the government sector, we can’t hold ourselves back but complain. Budgets, projects and funds are there but decision making has come to a crawl. We are seeing this business really shrink. However, we do see BFSI firing. We are expecting BFSI sector to see a double digit growth. In the government, we are talking of a de-growth.

in the Tier II and Tier III towns. What are your expansion targets for these Acer Galleries for this year? Out of these 4000, 70 per cent are engaged with us fairly regularly. The first task is to get the other ones also into consistent engagement. The idea is to expand our footprint from the 850 towns that we are present in today, to cross about 1,000-1,200 towns. From a sales standpoint, what are the best performing regions for Acer? At a macro level, the north, west and south are 30 per cent and the balance comes from

that express their personality What is your media mix? Broadly ATL and BTL splits are 50 per cent. Television is timed to a particular occasion and event. Print is the biggest spend in ATL. At any time, we have 16 to 20 publications carrying our print ad. On an average, we do two to three inserts every month per publication. In normal months, around 40 per cent of my total spends go to print. In times of a television campaign timed for festive occasions, however, it will be around 30 per cent. Digital is not a very large percentagesomewhere close to 2-5 per cent is spent on digital platform. As part of your marketing strategy, Acer is also strengthening its presence in the commercial space. How much contribution do you see from these verticals, especially the Government sector? We split our entire business into the commercial business and the transaction space.

Pitch | September 2012

What is your retail and distribution strategy? How much investment has gone into rebranding your retail outlets? At a micro level, we have three storesan Acer mall, a franchise model which sells Acer exclusive branded products, Acer point, which is a multi-branded store and Acer galleries, which are present in Tier 3 and 4 towns. To give you an indication of the kind of investment, a typical Acer mall will see investment of ` 1-2 lakh, Acer point stores will cost ` 75,000-1,25,000 lakh and Acer gallery will be in the range of ` 7,000-10,000 investment. Acer has adopted an aggressive go to market strategy through its Acer Outreach programme to reach out to the hinterlands. This programme was adopted in the year 2011. Through this marketing strategy Acer has aggressively reached out to 800 plus towns and expanded its foot prints through Acer Galleries and have opened 4,000 plus stores

east. We time a lot of our schemes depending on festivity and invest in something localised to these specific regions depending on festivals. In this space, Kerala has done well in the months of August and September because of Onam. Broadly, the large format retail fires quite well during the festive season while in the south; it will be more of the Acer branded stores doing well. What is Acer’s current market share and what are your targets? We have a 13.4 per cent market share in India for desktops and notebooks put together. In terms of targets, we want to execute strongly on three things - retail expansion, which implies expanding the footprint into towns, investing heavily in training and given that there is a festive season, investing in schemes that touch both channel partners and customers. -arshiya.khullar@pitchonnet.com

BOOK EXTRACTS

FAMILY MARKETING McDONALD’S

‘Egg’static McDonald’s is experimenting with its menu. Egg is the new item. Will the strategy work? By Aditi Malhotra

fter spicing up its menu, which has witnessed consistent revisions to suit the Indian palate, McDonald’s India is continuing its efforts to make Indians feel at home with the brand. This time, the McEgg follows the innovation suit and has been created for the growing category of ‘eggetarian’ consumers. It has been launched to specifically cater to a category, which would indulge in an egg, but not necessarily eat non-vegetarian food. Moreover, the company has added an Indian touch to the new offering with vegetarian mayonnaise and Indian herbs and spices. The breakfast menu at McDonald’s also serves the Egg and Cheese McMuffin, which sits on a similar platter when it comes to pitching egg as the core ingredient. However, the distinction is intended to be drawn between the two offerings since the McEgg is served only beyond breakfast hours to address the taste and dietary preferences of customers who consume egg on a regular basis, according to Rajesh Maini, General Manager, Corporate Communication for McDonald’s India (North & East). “While, we have vegetarian and non-vegetarian protein products on our menu, egg as a source of protein was missing from our regular menu,” adds Maini. To accelerate and build buzz around the launch of this offering, the social media platforms of McDonald’s India, are brimming with content hinged on the ‘Bad Egg Joke’ theme. The television commercial, conceptualised by Leo Burnett echoes the ‘pakaak’ (cackling sound), which is meant to highlight the product being as close to the nutrient ingenuity as it gets. “We used print particularly during weekends and festivals when people prefer eating out with

families. To enhance visibility, we have used outdoors across all the cities and highways where McDonald’s is located along with shop fronts and standees inside the restaurants that leads to McEgg recall,” says Maini, while detailing the communication mix designed for the McEgg. Besides this, in select malls in Delhi and NCR, there have been some interesting BTL activations with high sized standees and eye catching outfits like a hatch unipole, which descriptively

“While, we have veg and non-veg protein products on our menu, egg as a source of protein was missing from our regular menu” Rajesh Maini General Manager, Corporate Communication, McDonald’s India

show the sandwich emerging out of hatched egg along with clarity in communication of its incorporation in the Happy Price Menu. The tray mats inside the restaurant, which are probably the most active customer touch point after the menu, have also been designed to emphasise the price point as well as the nutritional supremacy of the product. Further, keeping true to its ‘Indianisation’ endeavour and the constant stress on localisation, for states like West Bengal, all the communication has been in Bengali. “Going regional, in Punjab we have partnered with the cinemas where our restaurants are located that helps us achieve product trail,” adds Maini. He also confirms that along with introducing locally developed products; McDonald’s will keep pace and roll out products from international markets too, which would be relevant to the Indian palate. McDonald’s India is hosting the diversity in Indian tastes and preferences magnificently well. However, the contention with the McEgg is that even though it might not be competing with its own variant in the breakfast menu, but priced at Rs 25, it could be pegged against the regular Anda Bread, which is also available at a price point of possibly a greater value.  -aditi@pitchonnet.com

Pitch | September 2012

COLUMN

How about a Masala Uttappa McD burger? Pilgrimage spots are usually on a must-see list for people of Indian origin. Would McDonald’s offer a no-garlic, no-onion option for pilgrims at these places?

Smitha Sarma Ranganathan Professor, Marketing Management, IBS Business School, Bangalore sarma.smitha@ibsindia.org

ccording to a popular Rajnikanth fable – “Rajnikanth once went to McDonald’s & ordered for Idli-Vada with piping hot filter kaapi. He got served fries with burgers and a fizzed cold drink instead. Annoyed, he threw out McDonald. Then on, you find Ronald McDonald sitting outside his own restaurants the world-over!” Jokes apart, strategists at McDonald’s India finally seem to be reading the fine print of Indian cultural beliefs and religious practices. The strategy of opening pure vegetarian McD’s at pilgrimage destinations beginning with Golden Temple, Amritsar, followed by Vaishno Devi, Katra is a well-crafted one. While McD’s cultural sensitivity has been obvious in its ‘No Beef, No Pork’ offering for the Indian subcontinent, the new-concept pure-vegetarian menu restaurants is a shot in the arm for sure. The proposition of a totally vegetarian format of restaurants from a chain known for its beefy burgers internationally goes beyond being a case study in intelligent international marketing. The strategy has multiple implications in the Indian marketing landscape. It goes on to communicate loud to a captive pious audience of the heightened consciousness displayed by an American fast food chain in embracing Indian values. This is perhaps similar to the endearing respect we feel towards a

foreign-national who turns up in a pure-white dhoti and kurta. Slowly, but surely the awe and respect turns into acceptance and the feeling of being ‘one among us’. This process of systemic cultural adoption could be true to McD’s pure vegetarian offerings too, particularly among an audience which has stayed away from anything firang when it comes to food! Secondly, the pilgrimage spots are usually on a must-see list for people of Indian origin visiting extended families and friends on an annual vacation. Anybody who has experienced the convenience of having a McD meal often misses it in places such as pilgrimage locales, when the focus is on a darshan or catching the aarthi and not on leisure eating. This aspect must work well for McD, and may prove to be favourable over the traditional Indian menu of ubiquitous paranthas or sambar - dependent dosas. It would be interesting to notice the menu conceived by McD in these custom outlets. Would McD offer a no-garlic, no-onion option? How about the popular Happy Meal, which could now include mementos relating to the pilgrim spot under consideration? Would we be over-ambitious in expecting a deepened sense of customisation so as to get the fluffy burgers to appeal to the diverse Indian taste buds? How about a burger inspired by a Masala Uttappa or a Masala Paav inspired burger? When the

Emerging an undisputed leader in the fast food segment over the last decade, it would not be long until McD calls itself the pious branding partner for signature events at pilgrimage sites Pitch | September 2012

American pizza maker Yum foods could churn out chettinad version of the Italian pizza, impossible is nothing! However pricing and design of the offerings is critical to the success of this initiative. It is to be seen on how the Jumbo and Goli Vada-Paavs react to its similar-incontent colonial cousin! If this neo-format takes off well, it would pay McD’s to segment the locations even in Tier-I and Tier-II cities based on cultural specifics and customise the offerings accordingly. Vegetarian households have an ongoing debate among older-members patronising only pure-vegetarian restaurants and the Gen-Y choosing to pick from the vegetarian offerings even in a mixed menu setting. Apprehensions about shared kitchen appliances and the ‘unpardonable’ human error of stirring the vegetarian dish with a ladle used to stir chicken broth often clouds decision making. Finally such figments of imagination can be best set to rest by the neo purevegetarian format. The mission of - Go global, Think local permeates in McD’s move of offering meatless menu options in India. Emerging an undisputed leader in the fast food segment over the last decade, it would not be long until McD calls itself the pious branding partner for signature events at pilgrimage sites. Navratra Festival at Vaishno Devi... Think Bhakti Meal from McD... Now how’s that for starters? 

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

BOOK EXTRACTSMARKETING FIAT AUTOMOBILE

On the comeback trail After the marriage with Tata went sour, Fiat is going all alone in the market with renewed strategies. What all is the company doing to make a mark of its own in the Indian market? By Abhinav Mohapatra

s the festive season draws near, brands are getting ready with their out of the box offerings to inveigle the consumers. Dusherra and Diwali offers keep customers in a loop with discounts and exchange offers. But what has the Fiat Group Motors, which is now a 100 per cent subsidiary of the Italian SPA after its transition announcement from Tata Motors, been doing? Has the split affected the sales or the brand equity? What is it trying to do to establish its positioning in the market? Pitch finds out. The brand recently introduced a new line of ‘Absolute’ editions for its car models, Linea and Punto as an offer for the festive season. More so, these editions are not limited but will be made available on demand as a part of the catalogue for this festive season. The ‘Absolute’ cars come with a customised accessory pack that includes a 3G tablet and a few cosmetic changes for the customer, without any additional cost. But is this a lure or a genuine gesture? Steering it right Ravi Bhatia, Head, Business Development, Fiat Group Automobiles India says

that, to market the brand amidst the transition, it is banking on the experiential element. Fiat has initiated Fiat cafes in Delhi and Pune, to further its brand experience centre. “Our dealerships in a way will be experience zones and we also involve ourselves in many unique events such as the European football, Formula1 racing, technology and fashion events. Therefore, we regularly interact with customers and position ourselves as an emotional brand rather than a functional brand, even though we cater to the functionality aspect very well,” he adds. The current dealership network is a shared one, the Tata Fiat network. Fiat is present in 126 cities with 174 dealers. Fiat plans to remain in 126 cities in the future and be available everywhere individually.

The brand is also sketching a course of action, which will put them in 67 cities till March 2013 and cover the entire network by December 2013. Murad Ali Baig, Auto expert, foresees that the 20 major metros will account for 80 per cent of the sales of Fiat. Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Ahmedabad, Pune, Chandigarh among others. “So if they have 60 dealerships they will cover all,” he adds. But has or will the transition affected the sales in any way? Bhatia expresses that this has been a planned transition. Fiat entered the market with the distribution arrangement with Tata motors. “Essentially what the transition implies is that we have a dedicated network of Fiat. So Fiat will represent itself in the market through an exclusive dealership. It will also establish a 100 per cent owned subsidiary of Fiat group Italy SPA in India. Therefore, one can see our new identity both Fiat and Chrysler logo, which is the identity of our parent,” he adds. While Fiat is trying to make the transition smooth for its customers and dealer partners, the brand does recognise the dip in the sales, which it claims to have foreseen. Baig, however, has a different story to tell. He says that, even though Fiat has good cars but it has lost its image. It was mismanaged when the Italians were here; hence, the marketing policies and the spare parts went for a six. Later when Tata and Fiat has a 50-50 joint venture, Fiat became the orphaned child of Tata motors, the service and the spare part availability was better but Tata motors was not interested in pushing the Fiat brands. Therefore, when a customer would ask

Pitch | September 2012

for a Punto or Linea they would not pursue it as aggressively, since the bottom line was to sell Tata vehicles. Geared up Fiat claims to be ready by March 2013 when it will have 80 dealers as well as the current dealerships. Bhatia feels that the market presence is important and the share is an outcome. “We know that when our dealers interact with the market directly the market share will go up to our aspirational share. Before the transition we had a 0.6 per cent market share, but our global market share is 4.1 per cent, which we are looking at for India too,” he adds. Fiat plans to establish this by brand building, network building and organisation building in sync with the initiatives that it takes. Fiat claims to have a customer car park at an excess of one lakh cars that includes Linea, Punto and Palio. “We have a small share in the market because we are in the transition phase, post that we will come back to our market share of 0.6 to 0.8 per cent, soon growing to one per cent and overall 4.1 to five per cent is our aspiration in this market,” appends Bhatia. The recent SIAM report for the month of April to August 2012 shows that the overall domestic sales growth dipped by -3.9 per cent and the passenger car sales has seen an 18.5 per cent decline in the month of August 2012 as compared to August 2011 with the entire passenger vehicle segment facing the brunt of a four per cent decline. Fiat Group Automobiles India, according to Bhatia, claims to position itself in the premium hatchback and sedan segment. He says, “In the premium hatchback the growth has been significant where the car industry is growing at a rate of 10-11 per cent. The premium hatchback is growing much faster indicating to us that many car owners who were in the B

“Our dealerships in a way will be experience zones. We also have been a part of events, such as the European football” Ravi Bhatia Head, Business Development, Fiat Group Automobiles India

“Fiat has a very big brand image problem and change in dealership is a good decision” Murad Ali Baig Auto Expert

segment are now migrating to B+, which is driving the growth of the segment. Therefore, in terms of that Punto caters to sports enthusiasts and the youth and similarly Linea fits in with those with aspirational needs. I would call India a small

While Fiat is trying to make the transition smooth for its customers and dealer partners, the brand does recognise the dip in the sales, which it claims to have foreseen Pitch | September 2012

car with high features market. Customers have started demanding more, it is not a basic small car, sometimes when we talk about small car it means economy but it is not the case now,” he adds. Talking about economy, have Fiat’s offerings and the ‘transition’ period brought any change to its pricing? Bhatia says it has not. The Absolute editions in Linea are giving almost ` 78,000 value offers and ` 67,000 in Punto, for free. By realising that the brand is purchased mainly by the youth, the elements of value that have been given by Fiat are related to infotainment, like the 3G tablet based on Android system with smart phone capabilities. “We are giving 50 months roadside assistance, which is a benchmark in the industry and a lot of different discounts on exchange insurance etc.” Rough terrain Baig says that it will be a tough trial for the brand to establish itself. “For that to happen they will have to come out with some new brands and not just cosmetics, but new cars and really innovative marketing with great leadership,” Baig adds. Bhatia explains that Fiat is spending its market share both on ATL and BTL advertising with a bouquet of propositions to its dealer on a BTL level. “However on the ATL level we are building our brand and clearly representing the brand and technology. We did the technology campaign for our diesel engines, the Punto 90 horse power sports campaign and the absolute campaign, which is a feature led campaign through TVC and print. In the end Baig adds that Fiat has strongly built efficient cars but has gone downhill for so many years, hence, it is difficult to reverse the trend. “Fiat has a very big brand image problem and planning to stand on its own two feet and change in the dealership is a good decision. It has its own plant, own distribution and marketing, if they can get their management to work, it will be a slow uphill with a lot of ground to catch up,” he adds.  -abhinav@pitchonnet.com

COLUMN

Upcoming mobile technologies Today’s smartphones seem to have stepped out of some Sci-Fi movie that has us utterly fascinated as kids

Most phones today have GPS enabled search engines which not only helps us find the best restaurants in the town but also the best restaurants nearest to our homes. The smartphones of today are the ultimate gadgets, they are everything useful rolled into one. A lot of broad trends are sweeping through the world of smartphones currently. Most of the companies are upping their game by adopting phones with professional lenses and cameras with high resolution. Any mobile event, meet or even any mobile-technology article worth reading would have the words ‘Ice Cream Sandwich’ thrown in it somewhere. Irrespective of how deep people’s understanding of the term is, it smells of something ‘new’ and therefore is desirable. Google’s latest Android 4.0 or Ice Cream Sandwich, if you please, is the embellished and upgraded version of Android 2.3 (Gingerbread). It offers multitasking and customisable home screens, amongst others. The screen of the smartphones too seems to be growing bigger, with some companies stretching it up to an insane 5.2 inches. Augmented Reality is another technology that has been around for some time but has not gone viral yet. The idea behind this technology is to combine a live feed of an object with real time data, generated by the device, in this case, the smartphone. With this technology, pointing your phone to a, say, building will give you complete

details of the building, like the name of the building, if it is a commercial building or residential, the number of residents in the building and their names. Some new smartphones are also completely water proof, and the companies go to great lengths to advertise the same. This is the one feature we can all be thankful for; losing my pricey smartphone to water is not my idea of fun. Ten or fifteen years ago our present dependency on our smartphones would have seemed rather foolish. Indeed, the daily dependency on our phones is growing, aided by the flood of innovative technologies promising us a better life. And a better life it is, where we can book our flight tickets online, use mobile banking to transfer funds and watch a repeat of that interesting episode on our phones. The flood of emerging technology is so great that it is difficult for mobile makers to include all the features in one device. Therefore, most companies try and specialise in one technology while including as many features as they can. What is remarkable about the tremendous leap in mobile technology is that though the features of the phone are rocketing up, the devices are becoming slimmer and stylish. Smartphones are still evolving and their umpteen features too are becoming more refined and advanced. By the time we do reach that perfectly smart smartphone, it will be something the Star Trek movies would yearn for. 

Some new phones are water proof, and brands go to lengths to advertise the same. This is a feature we can all be thankful for; losing my pricey smartphone to water is not my idea of fun

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

Sanjay Maheshwary

Head, Marketing, Mobile Communication, LG India

he sleek, upgraded and uber-glamorous phones of today are distant cousins of the boxy phones of the former years, which considered their ability to send text messages a luxury. Multi-tasking is no longer a talent but a way of life today. With our smartphones, we can hold a conference call with our client, while pointing out the grammatical errors in our friend’s Facebook status and simultaneously mail a reply to our bosses. Apps like Google Maps can help us find our way out of a jungle while Calorie Counter can persuade us not to eat that delicious pastry. Mobile phones truly have come a long way and have even further to go. Every year some new technology is being invented. While dual core processors made the rounds last year, 2012 will see the rise of quad core processors. The upcoming hi-tech phones of 2012 will surely have quad core processors, along with several other new features. Near Field Communication is another technology that is all set to take off this year. It’s a new radio based technology that allows devices to communicate seamlessly when brought into close proximity with another device. It can help our phone turn into a contactless bank card and thus change our perception of mobile phones all over again. Cloud gaming, which offers a high fidelity and immersive gaming experience on any device, will be another big thing this year.

Pitch | September 2012

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Pitch September 2012

TOURISM MARKETING BRAND USA

The US dream The US has finally woken up to the fact that Indians can contribute largely to the country’s tourism industry. What plans does Brand USA have? By Arshiya Khullar

ost Indians hold a desire of living the American dream. Do an equal number also look at the US as a preferred holiday destination? To attract travel enthusiasts from across the globe to the country and rekindle the holidaymaker’s interest, the global superpower has embarked on a fresh campaign, spearheaded by Brand USA. Brand USA is a public-private entity established by the Travel Promotion Act in 2010 to market the United States as a preferred travel destination for travellers across the globe. The first global marketing effort by the country to promote tourism in the country, Brand USA, is akin to our very own Incredible India campaign launched by the Ministry of Tourism in 2002. The difference, however, lies in the funding. Brand USA will get contributions from different verticals of the industry- tour operators, hotel chains, airlines which the US Federal Government will then match its own contributions to. The new tourism marketing entity led the sixth and largest travel mission to India, consisting of 50 delegates representing 35 US destinations and companies, who visited New Delhi and Mumbai recently. Discover US Brand USA is using the ‘Discover like Never Before’ theme to create a compelling connect. The theme encapsulates two ideas- to attract the first time travellers and to renew the interest of the travellers who have visited the country before, by introducing them to places beyond the conventional tourist spots. According to Jay Gray, Vice President, Partnership Development, at Brand USA,

the need for such an agency germinated from the realisation that the market share of the U.S. was staying flat, even while international travel, the world over, was witnessing a rise. The economic slowdown all over has had a ripple effect on the travel & tourism industry, with several people curbing their holiday plans to save for a rainy day. If the figures shared by Gray are anything to go by, Indians certainly don’t come in this bracket. “For a lot of our international markets, the growth is flat at 1-2 per cent

“For a lot of our international markets, the growth is flat at 1-2 per cent, but India is seeing a 12 per cent growth” Jay Gray Vice President, Partnership Development, Brand USA

but India is seeing a 12 per cent growth year on year,” says Gray. We had projected a two per cent growth from India last year. With India being one of the key markets for US, the agency is nursing a target of achieving 13 lakh international travellers from India by 2016 and close to 1.5-1.6 crore by 2020. To market and drive awareness in India, it will follow a two phased approach. The first phase will be at a B2B level, wherein Brand USA and its repertoire of hotel representatives, tour operators, among others will engage with the travel trade in India. There will be road shows to educate the local trade about this new entity. The next phase, which will kickstart next year, will see consumer campaigns and representation on different media platforms. While these activities have already started in countries like UK, Canada and Japan; China and Brazil, besides India, are the other emerging markets that will see the next round of campaigns by Brand USA. While mature markets like Australia, Germany, Italy, to name a few, will comprise the next tier of target markets. Gray did not divulge the investment earmarked for India operations stating spends in India to be ‘significant enough to have high impact and high visibility’. At an overall level, however, close to 12.3 million dollars were spent in the initial campaign spread across UK, Canada, and Japan for a duration of three months and according to Gray, investments for the next round of markets will be in the range of 3 million to 1.5 million per market; a figure that is reliant on the type of market and the cost of media. n -arshiya.khullar@pitchonnet.com

Pitch | September 2012

LUXURY MARKETING MERCEDES BENZ

A wider network By Abhinav Mohapatra

erman luxury automobile brand Mercedes Benz, too, is bullish about the growth opportunities in the country and recently inaugurated its 72nd touch point in Delhi, with an investment of ` 5 crore. Not only that, the brand has upped its investment by ` 250 crore making a total of ` 850 crore by 2014, in order to strengthen its production and operational capabilities. The brand also claims to assemble the M class range of cars in India. But why is Mercedes suddenly focused on the Indian market where it lost its premier position in the luxury segment? Numbers game? Peter T Honegg, Managing Director & CEO, Mercedes-Benz India, says that Mercedes does not calculate turnover in absolute numbers. What it is investing now will only be harvested in the coming two to three years. “We spend roughly 1.5 per cent of the turnover, which means if I would sell five thousand units and then 10 thousand units, the amount will double. Hence, it depends on what you are selling. The turnover of a B or E class is only a third of a turnover of the S class,” he says. Mercedes also plans to open 10 to 15 touch points in the next three years, 10 as sales and 15 including service. ”Five years from now, we are looking at 120 touch points. We look at 2012 to be a little bit faster so we are thinking of cooling down a little bit. Our strategy, is to focus on Tier-III cities but not to push the investor, rather let them make a smaller base but keep up the pace,” adds Honegg. But what is the rationale behind adding another ` 250 crore to an existing ` 600 crore budget for 2014? Mercedes feels that India is the place to be, in agreement with the management in Stuttgart, which is the headquarters. The brand senses that in future, the number of cars below ` 30 lakh and between ` 30 and 40 lakh will increase, therefore, to be in sync with the market the

Pitch | September 2012

brand needs to be in the segment to grow, and for that it needs investment. Murad Ali Baig, Auto Expert, thinks that even though India is a very small drop in the Mercedes ocean, it is suffering from a tremendous complex of being overtaken by BMW first and then Audi. Therefore, it is determined to try and regain its market trends. “Audi and BMW have been able to get new models like the X1, which start below the ` 25 lakh range, hence, increasing the affordability. Mercedes did not have a small car earlier; they have just launched the B class priced between ` 22-26 lakhs, trying to get into the game.” Is CKD the way to go? With increased investments and a M class CKD (complete knock down) assembly, will Mercedes get back on track? Honegg says that the M class is always above the B class. “ML definitely is one of our main pillars. We are selling about 130 units a month for the

“We have been there in the Formula1 since last year. It gives the company a younger appeal” Peter Honegg

last three months and want to bring the ML as the CKD, with CKD pricing.” Baig disagrees, citing that the M class still does not have the image that the Q7 or the X5. “There is nothing wrong with the product. By bringing in the local content, Mercedes is able to bring down the customs duty since India is an extremely cost sensitive market.” Catering it right If not the car, then is it the positioning? Mercedes says that it is targeting the young. “We have been there in the Formula1 since last year and 40 per cent of our customers are interested in Formula1. It gives the company a younger appeal,” Honegg appends. But he also adds that the average customers of Mercedes are in the age group of 30-40 years. Baig still thinks differently. “Mercedes has been there in the Indian market since 1997 and has had a clean run without any competition for the luxury segment. Now it is perceived as a grandfather’s car. The brand perception of Audi and BMW is much younger. The frills between the three excellent products are just the details and the persona. If I have a Mercedes, I am 60 years old if I have a BMW I am 5,0 if I have an Audi I am 40,” he says. Does Mercedes have to change its promotional strategy to cater to the young, or young at heart? Honegg talks about the digital platform, citing the relationship of the youth with this media, he says, “We are doing a lot and are on Facebook also like everybody else. The B class launch was mainly done on the digital platform. We also did the concept A class campaign on the digital front as most of the marketing investment was on the digital media on a global platform.”  -abhinav@pitchonnet.com

BOOK EXTRACTS

LIQUOR MARKETING BEER

A Strong Premium feeling Beer marketers have spotted the opportunity for Strong Premium beers in the country, in recent times. How are they developing the category? By Pallavi Srivastava

eer is the largest segment in the Indian alcohol market and strong beers corner the major chunk of this. Market estimates suggest that strong beers (with alcohol strength of between six and eight per cent) contribute about 80 per cent to the beer market and up to 70 per cent (by volume) of all the liquor sold in the country. In this huge strong beer market, there exists a plethora of cheaper, strong beers like Thunderbolt, Haywards 5000, Knock Out, which by their name and imagery are based clearly on potency. Forming a cusp space between bang for buck and serious alcohol (in India synonymous with whisky), these

are the go-to choice for the younger, about-to-enter-into-alcohol consumer as much as the price sensitive consumer. Opportunity for strong premium beer But in the recent times, beer marketers have spotted the opportunity for Strong Premium beers in the country. The premium end of the strong beer category has players like Kingfisher Red, Carlsberg Elephant, Budweiser Magnum, Tuborg Strong, Fosters Strong and Australian Max, among others, on a premium or super premium pricing. Some of these brands are available only in select markets but together they offer sizeable choice to the consumer looking for an easy-going alcohol choice but with potency. Samar Singh Shekhawat, Senior VP, UB Group says, “In both strong and mild beer segments there is a creamy layer that has swarmed in last few years. In a mild beer there is a super premium mild beer segment swarming with Carlsberg, Budwiser and Heineken; while in the strong beer segment there are brands like Carlsberg Elephant, Budweiser Magnum etc. However the mild premium segment is growing much faster than the strong premium segment.” Hic Hic Hurray Marketers are of the view that there is a lot of opportunity by way of an ever expanding Indian palette that is looking for new & unique offerings in beer space. Kartikeya Sharma Marketing Head - India Operations (Global & Local Brand Portfolio) at Anheuser-Busch InBev says, “Budweiser Magnum gives us an opportunity to fulfill the need gap

“In both strong and mild beer segments there is a creamy layer that has swarmed in last few years” Samar Singh Sheikhawat Senior VP Marketing, UBL that is currently experienced in the high strength beer category. And this is by offering a uniquely smooth beer with a strong taste you can savour. We think the Indian consumer is beginning to feel the need for superior quality brews, and we sense that the timing is ripe for a super premium.” Launched about two months ago Budweiser Magnum is a recent player in the Indian strong premium beer category with 6.5 per cent alcohol. The brand is focusing on the four major metros – Mumbai, Delhi, Bengaluru and Hyderabad - which together account for 25 per cent of the beer drinkers in India. In 2011, Carlsberg India launched Carlsberg Elephant to build upon its strategy of creating a super premium strong beer category in the market. The company its first steps in this direction with the

Pitch | September 2012

introduction of Tuborg Strong in 2010. India’s liquor King, Mallaya’s Kingfisher, too has presence in the strong premium beer space with Kingfisher Red, which is also an all season beer and offers the promise of good taste even at room temperature. However, Kingfisher Red is not as premium as Elephant or Magnum, it is priced about ` 5-10 higher than the usual strong beer Kingfisher Strong. On the contrary, Carlsberg Elephant 650 ml bottle is priced at about ` 100-125 (depending on the market), 40 per cent premium of Tuber Strong. Same size bottle of Budweiser Magnum costs about ` 150. Pegging it right Some of these Premium (or super premium) strong beer brands are targeting young adults, while other brands are targeting more evolved consumers. Budweiser Magnum says that it is targeting young achievers who are ambitious and settle for nothing but the best. On the other hand, Carlsberg Elephant targets a more evolved consumer, that is, a social drinker, affluent, discerning and contemporary; one who appreciates refined things in life and seeks luxury experiences. Soren Lauridsen, Managing Director, Carlsberg India said in a company statement, “Our product offers its consumers a choice to trade up in the strong beer category and yet retain the core attributes of one’s personality like strength of character, consistency, conviction and sophistication. With Carlsberg Elephant we are addressing a very potent section of the beer consuming TG that is willing to pay a premium for superior quality strong beer which fulfils a latent need for sophistication and new royalty”. Experts feel that targeting an evolved consumer is a much better idea for premium strong beers. Alpana Parida, President, DY Works argues, “Trying to get either mindsets (about to enter category or wallet conscious) to upgrade to a strong beer which is up to 30 per cent more expensive would be a doomed to fail task. On the other hand the older consumer, who due to prestige and status

Pitch | September 2012

connotations has preferred marquee beer brands, when seeking a strong beer option really had no choice. He is willing to pay more, is looking for more than just bang and thus makes an ideal choice for the marketers to target.” Additionally, this is also the consumer who till today has been drinking the regular or mild versions of the same marquee. Thus getting him to try and subsequently cross sell is much easier than going out there and convincing and new user to get on board!

The journey for the premium and super premium strong beer brands is not going to be easy. It accounts for only 1-2 per cent of the strong beer category Smooth journey or bumpy ride? The journey for the premium and super premium strong beer brands is certainly not going to be an easy one. UB Group’s Shekhawat says, “The premium mild beer accounts for about 15-20 per cent of mild beer category. But premium strong beer is not growing at that rate and currently accounts for only 1-2 per cent of the strong beer category.” Shekhawat expects the premium strong beer’s share in the strong beer segment to go up to 10 per

“Older consumers, with prestige and status connotations prefer marquee beer brands” Alpana Parida President, DY Works

cent in the next five years, which he feels is quite good considering the large base of strong beer market. Some experts also feel that the legal drinking age in India being higher than most countries and the restrictions on advertising is a challenge for the new brands. Ambika Sharma, MD & CEO, Pulp Strategy feels, “The Indian consumers also connect strongly to the brands positioning and the names of the brands seem to have a big role to play. In the case of brands like Knock Out, Haywards 5000, Thunderbolt and Godfather, the names speak for the appeal of these brands. Breaking the trend global names may need an extra moment to fit in.” In the same breath she also says that with Indian consumers fancy for brand names the global brands will find faster appreciation in urban India. The opportunities lie in actually giving more meaning to the idea of strong beer along with a fine smooth taste. Experts feel that the premium strong beer space is waiting to be tapped by a brand who will understand the category and the consumer need and find the sweet spot between the two!.  -pallavi@pitchonnet.com

BOOK REVIEW

‘Commmunication’ well ‘decoded’ Quite early I recognized the importance of theory- a process intended to set a firm grounding for a systematic approach to any subject. Its deficiency in communication causes a significant transactional gap between teaching and doing... -Page xv, Introduction By Aditi Malhotra

DECODING COMMUNICATION Author: N Chandramouli Publisher: TRA Publishing Pages: 249 Cover Price: ` 399 (Paperback)

ecoding Communication’ is a book by N Chandramouli, who is best defined as a frontrunner in business communications, and is a comprehensive detailing to enable a study of communication. As Chandramouli highlights in the aforementioned lines, it is essential to know about the model of communications before the highly practical subject is taken to the field. And, this endeavour largely comes from the fact that he himself wasn’t a trained accomplish in the field when he started off. But it was exactly knowing too little to start with, that generated extra bouts of curiosity to get into the nitty gritties of a profession, which is perceived to be less about the text book and more about the application of it on field. Since, communications is all about human engagement; it’s interesting how Chandramouli dissects something as simple as Trust and translates it as a “complex multi-dimensional activity.” For a novice, who picks up the book only to benefit from it, to read about characteristics of behavioral elements in humans makes it easier to know what to expect from others and from one’s own self. This first section of the book also talks about Brands and brings you to statements like, “A Brand is what a Brand does,” which settles in your head and makes you want to flip through the next few pages to know what could potentially contribute in completing that personality of a Brand. “The Brand,” writes Chandramoulli, “is reinforced in every action, transaction, experience, emotion, memory and association it generates.” Without disclosing the rough sketches of personal experiences that embellish the technical decoding, the book does tend to charm the reader by listing all that goes into establishing the connect between the consumer and the brand and moreover, leading the consumers to the brand, before even escorting

Since,communication is all about human engagement; it’s interesting how Chandramouli dissects something as simple as Trust and translates it as a‘complex multi-dimensional activity’ 54

them into the burrows of recall, loyalty and trust. While the Fundamentals inaugurate the book, the second and third sections are on the Models of Communication and looking ahead into the Future Through Communication. It’s fascinating he bases the book on an energy which features Communication, as a profession, Chandramouli decides to not emphasize on the future ‘of’ the profession. Instead, he chooses to put Communication in a much more beneficial compartment and aligns it what all that could be facilitated ‘through’ Communication. To my mind, however, a book which is based on such a relevant subject can only be complemented by illustrations and photographs. We identify brands when we see them and to sweep your eyes onto a logo when you read about what happened backstage would only be an added bonus. “Good communication is a concoction of the right ingredients, in the right doses- context, characters, message and style that the communicator uses by understanding the audience and the environment.” The book doesn’t let the reader lose focus and remains true to its word by allowing practitioners, experts and students dive a tad bit deeper into that lifesaving pool of Communication. Reverse the current day mantra of ‘Sell it, don’t tell it” and detox it by telling the story and not simply selling it. For the record, N Chandramouli is a Chemical Engineer turned Communicator who began his entrepreneurial journey straight after his engineering in 1990. His business experience began with chemicals & went on to stock-broking, banking and exports. His engagement with communication began in 1998 - a business that has obsessively consumed him since then. In the last decade of his career, he has promoted six different communication companies under the Comniscient Group umbrella. Of these, two are PR agencies. His other business entities include, Bluebytes, a news research and analysis company, and Trust Research Advisory, a business efficiency advisory.  -aditi@pitchonnet.com

Pitch | September 2012

CMOSCAPE

Marketing Tree of the month The Story Michael Boneham

President & Managing Director, Ford India

Marketing Vinay Piparsania

Executive Director, Marketing, Sales and Service

Anurag Mehrotra

Vice President, Marketing

Sriram Padmanabhan

General Manager, Consumer Marketing

Rajesh A

General Manager, Product Marketing

Account Reckoner

Corporate Communications Deeptie Sethi

General Manager, Communications

Sushant Balsekar

Abhishek Mahapatra

Product Communications

Corporate Communications

Soumya Dev

Social Media, Communications

Recent Buzz

stablished in 1995, Ford India is a wholly owned subsidiary of Ford Motor Company, a global automotive industry leader. Ford’s operations in the country also include Global Business Services providing business services in the areas of IT, accounting and finance, financial services and automotive operations support, global analytics and engineering services. Ford’s businesses in India boast a 10,000-strong workforce. The company has manufacturing facilities at Maraimalai Nagar, near Chennai. The company’s models include the Endeavour, Fiesta, Classic and the Figo. Ford in India has 230 sales and service outlets covering 123 cities in India.

Global Team Ford (GTF) is Ford’s local India agency and comprises: Creative: JWT Media: Mindshare Digital: Wunderman PR: Genesis Burson-Marsteller

September 2012

August 2012

March 2012

Ford India announces to roll out its first Indiamade compact Sports Utility Vehicle “Ecosport” early next year from its manufacturing facility near Chennai. Early this year, Ford displayed SUV-Ecosport at the Auto Expo held in New Delhi.

In August 2012, Ford India saw its sales grow by 16 per cent year-overyear. In the month, the company’s total sales including exports touched 10,352 units, of which 7,840 came from wholesales from the domestic market.

Ford India lays the foundation for its new US$1 billion integrated manufacturing facility in Sanand, Gujarat. When complete in 2014, the facility will have the capacity to produce an additional 2.4 lakh new Ford vehicles and 2.7 lakh engines per year for India and for export markets.

Pitch | September 2012

COLUMN ANNURAG BATRA

What does the youth desire? The youth demographic is fraught with myths. As a result conventional marketing based on these misnomers will never succeed

Annurag Batra Chairman & Editor-in-Chief, Pitch Magazine abatra@exchange4media.com @anuragbatrayo www.facebook.com/anuragbatrayo

he Pitch Abacus Youth Brand Survey 2012 unearths some interesting revelations about what today’s youth desires and their behavioural pattern while at the same time also propagating some existing stereotypes. In my judgement, here are some common myths about the young generation that are further providing an impetus to casting this segment into a stereotypical net. One of the biggest delusions that many hold about the youth is the strong conviction that this generation doesn’t read. That reading is a dying habit among them and books are clearly not on their radar. Called the generation of ‘screenagers’, many believe that youth can’t think in full sentences nor can they read anything longer than 140 characters. Well let’s bust this myth right away. Taking the booksellers and publishers word, kids are reading. In the ever increasing pool of children novels, the nature of content that is being consumed

might have undergone a sea change, but children are reading more than ever before. E-readers, apps, and digital media have helped craft ‘reading buffs’ out of a whole generation of ‘digital natives’. The digital landscape presents tremendous potential to tap this consumer segment which is characterised by steadfast brand loyalties. With the young consumer glued to his iPad and iPhone, digital marketing is fast becoming a priority communication tool for marketers. Youth is gravitating to social media to explore, share and ‘like’ brands of its interest, Pinterest and Instagram have become the new buzz words, and for the younger lot, gaming and apps take precedence over social media. In such a scenario, you are committing hara-kiri if your brand does not have an active web presence. This makes me wonder if our Youth Survey would have yielded entirely different set of results if it were carried on digital. Would it

One of the biggest myths and delusions that many hold about the youth is that this generation doesn’t read. That reading is a dying habit among them and books are clearly not on their radar 56

have sprung up different winners for say, the ‘Coolest Brand Slogan’, rather than the current ones, who have been continuing with the same brand proposition since a long time? Time and again, brands and market research agencies come out with their mantras to decode the ‘youth segment’, surveys and research highlighting what appeals to the GenNext. While these findings are indicative of this groups ‘idiosyncrasies, are they truly representative of the entire young segment? Can a few hundred or maybe thousand respondents speak for 40 per cent of India’s population? What about the scores of youngsters residing in the lesser penetrated Tier 2 and 3 towns who are occupying a growing share of the marketers’ mind and budget. The youth demographic is fraught with myths, halfbaked truths and stereotyping, and as a result conventional marketing techniques employed on the basis of these misnomers will never be in line with the real needs of this generation unless they are reframed and realigned to the true picture. 

Pitch | September 2012

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