Friday, January 28, 2011

THE JANUS-FACED ATYPICAL INDIAN CONSUMER

If a marketer wants to succeed in india, he needs to do two things. One, he has to be culture conscious. And two, he needs to adapt to it, and that too very fast!

“Only naïve arrogance can lead Westerners to assume that non-Westerners will become westernized by acquiring Western goods.”– Samuel Hutington in The Clash of Civilizations. Infidel, quirky, disloyal, undecided. These are perhaps the epithets MNCs would like to reserve for the Indian consumer. He remains unimpressed by sleek ads supporting world famous brands. He welcomes McDonald’s, yet rejects the westernised system of multi-course meal, retaining his preference for the traditional thali. He buys the latest devotional music CD while on the way to watch a Tom Cruise starrer over popcorns in a multiplex. While marketers like generalization, categorization, low uncertainty, and high predictability, in India they draw a blank. There seems to be no typical Indian consumer.

DISAGGREGATE THE CULTURAL CODE
In a traditional category like tea, regional variants abound. So some brands like Tata Tea’s Kanan Devan are formulated specially for specific regions. Even the cultural practice of preparing tea is dependent on the availability and quality of milk and water is that area. While in western UP the husband decides about the brand, in Kerala it is the wife. In general, women have a greater say in South & East, where they tend to be better educated. There are cultures within culture. Averaging a four cornered regional culture will yield a nonexistent entity. How else do you explain the above average demand for cherry coloured fridges in Kolkata and Sunsilk Black in south? Food items, similarly, in India are actually of three kinds – sustenance, occasional, and entertainment. The first kind is part of the socio-cultural ritual; no brand has been able to break the mould yet in this category. A Kellogg’s had to beat a hasty retreat when it tried to project itself as ‘the’ breakfast item, rather than being one of the choices. But Maggi, successfully, entered the occasional category by offering a unified benefit – convenience. And now that the concept of ‘health for the healthy’ is the dominant cultural code, Maggi has adapted itself accordingly. A choice of different flavours  provides insurance against regional rejections. Pizza Hut keeps repositioning itself every now and then since it has failed to realise that the Indian consumer still treats pizza as an entertainment food; he does not permit ‘foreign invasion’ into the sustenance category by products like pizzas or noodles. Pepsi – essentially an international product with a very Western personality – realised early that the Indian mind uniquely filters things Western. So it came out with hybrids, synthesizing Western and Indian music with typical Indian imagery married to Hinglish taglines (Yeh Dil Maange More, Youngistan Ka Wow et al). Nestle is continuously trying to figure out the changes in behaviour pattern for coffee and tea in India as is Johnson & Johnson by analyzing the psyche of the Indian mother and her concern for her child’s hygiene.

CORE VS. PERIPHERY
The Indian notion of self is transcendental unlike the Western one where it resides within the body. So even if a ‘here and now’ philosophy guides today’s youth, the deep-rooted tenacious traditions have not been abandoned. Indian youth simultaneously wishes to break free from the societal shackles, yet be attached. So parents remain providers, and therefore must be respected and obeyed. Parents of course are becoming open minded, democratic, and more sensitive to youngsters’ choices of careers, friends, and lifestyles. Mithai and Mcdonald’s, Michael Jackson and Mangeshkar sisters, fasting and fast food create no disharmony – as long as the amalgamation does not seek to change the inner core, the ingrained values. Social mores though are still dictated by an attitude of conservatism and conformity. Marriage (even if based on love) has to be arranged;  remarital/extramarital sex is still a social taboo if publicly known, hypocritically acceptable if privately practised.Indians have a high tolerance for ambiguity and a very well developed sense of jugaad (quick fix solutions). India is not a structured and system driven market. ‘Imported’ Baywatch beauties are welcome to invade viewing space but Indian lasses performing the same act would invite a charge of sacrilege!

CULTURE IN TRANSITION
Actually, our culture is permanently in transition since axiomatically, it has its roots in basic conditions of human life, including material conditions, natural environment, climate, and the ways in which people earn their living, as also in the historical experience of human communities which include interactions with other cultures. So culture can be perceived as a dynamic succession of overlapping ideologies rather than a static unity. Culture is a flow with three stages – residual, dominant, and emergent. In health and nutrition products, for example, the residual stage was about buying insurance against ill health, augmenting poor quality food and general nourishment. The dominant stage today is ‘health for the healthy,’ serious nutrition, learning to cope with stress, being fit, balancing success and happiness, atoning for a life of excesses, etc. A marketer has to offer products that incorporate these stages to succeed in the market. The market for coaching is flourishing since today, taking tuitions is an act for excellence in career unlike times of yore when only ‘weak’ children would be tutored.

SO WHAT IS THE SUCCESS MANTRA?
A marketer’s value system and overall profile is moulded by the culture in which he grew up, worked, and socialised. The reason why marketers like Marico, Dabur, and Haldirams are more successful than their multinat counterparts is precisely this. In order to succeed, two things are needed: a marketer has to be culture conscious; and two, he has to adapt to it.

In rural India, for example, the panchayat head or the school teacher acts as an opinion leader. So when Asian Paints launched its Utsav range, the salesmen painted the house of the mukhiya, village post office, or library to demonstrate the effectiveness of the paint. The marketer needs to communicate with the customer in a language and idiom he understands; urban communication may actually backfire in rural settings. For example, advertising that depicts women showing off their lustrous hair post a head wash is actually a turn off for most rural women who cover their heads. Culture is very important to people. Their preference for fundamental cultural values is emotional, not rational. They may even regard certain social norms and traditions as eternal and sacrosanct. So even if a marketer regards some norms as irrational, anachronistic, or distasteful (for instance, dipping biscuit in tea) he must remember he is not a crusader. Britannia decided to reformulate its Marie biscuits so that these would not break and get drowned in tea when dipped. Going one step further, in its commercial, it showed people actually dipping the biscuit in tea so that the consumer no more felt embarrassed about the practice. Important take away: Don’t only be tolerant, adapt to cultural practices. When intensive customer research told HUL that ladies had a hidden wish to feel refreshed when bathing as if they were under a water stream, the immortal positioning for Liril soap was born.

The broad role of a woman as a homemaker has not changed – what has gotten altered is merely her external appearance. But the scope for selling, say, cosmetics to a larger number will exist if you take advantage of changing cultural labels for your product category. Earlier, cosmetics were ‘enticement aids’ (hence, nice girls would not wear them); now, they are ‘grooming’ aids for older women (wrinkle lift creams) and ‘self expressions of individuality’ among young ones (Elle-18). Even bathroom fixtures are trying to change their label from utilities to statements of lifestyles.

A marketer has an onerous task in understanding, analyzing, and interpreting the complex web of relationship between culture and consumer behaviour. But with an operative TINA (There is No Alternative) factor, this is the price of success he has to pay.

 It is not the consumer who is quirky; it is the marketer who refuses to see the market through a cultural prism. True success is understanding the cultural mores, norms, and values of each target segment, while at the same time retaining the brand’s essence.

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Thursday, December 30, 2010

Cracking The Marketing Campaign Code. Finally!

There are Some Unique Elements which Determine Whether a Marketing Campaign or a Product Launch Succeeds or Crashes. Call it The 6 ms Approach of Marketing!

“You don’t need my investigative skills, dear Dr. Watson,” said Sherlock Holmes, “to realise that a marketing campaign is working when a simple spinning top or a two bit rubber band goes out of stock even at a fancy price of Rs.200-400 or Rs.90.” Alright, so we made it up. The ace detective never said it. Indubitably, however, no one can refute the truthfulness of the concocted statement. Beyblade is nothing but a branded spinning top, repackaged and coated with some shiny stuff, worth Rs.5. Promoted directly and indirectly through websites and TV shows as Storm Pegasus, Tornado Wing, or Seggitario, it makes children act like extortion dons coercing and reigning over their parents, who surrender and buy in addition an ugly plastic contraption called ‘Arena’, the battleground for these branded warriors.

Wipro had launched an offering called Pace, when the recession was on in the US; it addressed issues like capital saving and efficiency for user clients. But since the last six months, the customers are asking for revenue enhancers – they are no longer looking at an offshore version. So Wipro proposes to launch a new campaign in February 2011 that will talk about improvement in product cycle time and not just about costs. Customers now are looking at the speed at which solutions can be delivered, so that ROI can be realised soon, not 18 months later. This sure warrants a change in product offering and marketing communication.

MARKETING IS CUSTOMER
ORIENTED: THAT’S AN OLD HAT

Okay, but are you aware as to who is your customer? Actually the marketer-customer relationship has evolved through three stages and is now in the fourth one. And in a heterogeneous market like India, all the four versions may coexist. In the initial phase, there existed pre-determined groups of buyers who were certain to buy. Individual differences and preferences counted for nothing. Products were created without much feedback from the users who were targeted through one way communication. In stage 2, a customer became an individual statistic but without much of a unique identity. He was spoken with, feedback obtained, and changes were incorporated for redesigning the product. In the next stage, a customer is identified as a unique entity. The products are reconfigured based on deep understanding of his needs. The communication is on a one-to-one basis. Finally, in stage 4, the customer is being treated as part of an enhanced network; he co-creates and extracts business value.

EXCELLENT MARKETING CAMPAIGNS REST ON SIX Ms.
A marketer needs to follow the six Ms approach in order to make his marketing campaign future proof.

1.Precocious child or sweet sixteen? The marketer needs to define the target market in terms of demographic, psychographic, geographic, behavioural, and mediagraphic profiles. But, also realise that demographic variables fail to differentiate consumer behaviour. For example, 30-40% of consumers of premium brands are not necessarily SEC A. They could very well belong to SEC B or C. Partly, this is because over the last two decades, value drivers have changed from mere value for money and good quality to greater choices, service, and experience at retail level. When Hero Honda introduced the Passion, it had youth in the age bracket 18-30 years in mind who stayed in urban/semi-urban area and belonged to SEC A or B. More importantly, the customer was described as enthusiastic, who was considering a bike as an extension of his personality, was a style and looks conscious guy, someone who wanted something decent but price competitive.

2. Merchandise, the second M: The marketer must make it clear what is on offer, in terms of attributes, benefits, and values. Titan learnt two important lessons. One, watches are no more a time-keeping device but an everyday accessory and a style statement for the customer. So it positioned the brand accordingly. Two, one needs to lead the market with emotional innovation and keep repositioning the brand accordingly. So the latest catchline is ‘Be More’. Airtel, the number one brand in mobile communication, decided to make life simple for consumers by offering them simple and transparent services, communication and tariff plans and bills, since this is what the customer wanted.

3.Motive, the third M: An excellent campaign is based on deciphering the real reason behind the target prospect considering the product. So why did Kellogg fail in India? Because it attacked traditional belief that Indian breakfast was healthy; because in India pan-India breakfast item is a utopian concept, rather regional food preferences prevail This is because while cereals are light on tummy, Indians prefer heavy breakfast. Indians prefer spicy and savoury breakfast, not sweet. In brief, customers were not driven enough to buy. A Reebok failed initially because, in a nascent market, it talked about ‘marvel of engineering’. Focus on the sizzle, not the steak.

4.Message, the fourth M: It is the excellence of marketing campaign that made Dabur Chyawanprash rule over more than half the market. In one such effort, the positioning became ‘Banaaye andar se strong’ (makes you strong internally). Initially, when Dabur’s communication agency had focused on the rational appeal, the company had rejected it. Finally, the message with an emotional appeal was chosen. We also have to decide on the right choice of source (Toyota Etios) and package the message appropriately so that it stands out in a clutter (Jaago Rey campaign by Tata Tea). So an effective message is all about right positioning, brand image, and communication.

5.Media, the fifth M: Hrithik Roshan, Priyanka Chopra, SRK, Aamir, Amitabh and a whole lot of other film stars are on social media (Twitter, Facebook, et al), to keep in touch with their fans, take their feedback, and update them. This helps them strengthen their bond with their followers. A marketer has to decide whether to use a personal communication channel (Salman Khan selling tickets at Delite Cinema in Delhi) or non-personal (mass media, ambience/atmosphere, events, et al) one. The singular objective is to get, and stay, connected with target customer.

6.Measurment, the sixth M: It was only after ‘Bheetari Shakti Ka Vikas’ line failed to work, that Dabur decided to change it to ‘Banaaye Andar Se Strong’. Since curative positioning made the customers treat Dabur Chyawanprash as a medicinal product, the positioning was changed to preventive, thus placing it in a broader ‘desi’ tonic category. In determining the effectiveness of a campaign one should be clear about what is to be measured (Sales or communication effects?) and appropriate tools of measurement (Focus groups, sales waves et al). The feedback obtained thereby will give an idea whether to continue with the campaign (Cadbury retaining its positioning of celebrations with Cadbury) or modify it (Pizza Hut) or drop it (Ericsson, when people mistook the mobile brand being designed only for ladies).

It is on the strength of excellent and effective marketing campaigns that Maggi adorns the kitchen shelves of virtually all urban households, Cadbury is accepted as suitable ‘Meetha’ option for all occasions, and Lux makes all ladies aspire to look like their favourite film stars.


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Thursday, December 16, 2010

How Dose The Godzilla Get The Swagger Back ?

You will come across Uncountable Lessons of Failure in the World of Mega-Brands and Giant Citadels. But there are Some Names, Which have Managed to Bounce Back. Cheers to Such Goliaths!


HOW DOES THE GODZILLA GET THE SWAGGER BACK?

Vicco Turmeric and Vicco Vajradanti once were marquee ayurvedic skincare and oral care brands. But over time, Vicco failed to keep pace with consumer trends. It was a successful brand promising beauty care in a tube. Even today, the brand enjoys high recall and strong equity. But the brand failed to contemporise; it has failed to capture the new customer. It has thus ceded ground to newer aggressive players in the overall Rs.3500 crore skincare products market, where ayurvedic creams account for close to 15% market share.

But we don’t intend talking about brands which sign their own death warrants. Instead, we would like to document case histories of Goliaths who are trying to beat back bullies on their own turf. To be sure, competition rears its head with unfailing regularity across all segments of the industry. Improved customer sentiments, robust volume growth, a 5-10% price rise, grammage reduction in select biscuits, launches of innovative products and premium biscuits at lower prices, all this and more have meant improved profit margins for Britannia Industries. Yet, analysts are not too optimistic about the company’s prospects, as competition turns intense from foreign (United Biscuits and Kraft) and domestic (ITC, Parle, and Glaxo) players, in addition to the regional brands. Pepsico enjoys 50% plus market share in snacks, but Parle says it will slice 20% of market for itself before the current financial year is done. Who is scared of the might of the multinational muscles?

So the Goliaths, which are caught enjoying a siesta, are successfully challenged by the Davids of the marketing world. A short nap on the steering wheel can prove to be extremely dangerous. The question, however, is: can one still steer oneself to safety? Apparently yes. There are many brands who are trying to reclaim the lost script.

T FOR TEA, T FOR TATA
The branded tea market in India is worth Rs.7500 crore. Yet, though it is a popular beverage in India, tea is losing its popularity amongst youngsters. It is not considered a ‘cool’ beverage, which coffee is supposed to be. To make matters worse, in a recent survey, 77% respondents believed that tea was an unhealthy drink that caused acidity and nausea. Enough cause for worry for Hindustan Unilever Limited.

Then came in the spoilsport Tata Beverages and dethroned HUL from the #1 position in November 2009. The high voltage campaign ‘Jaago Re’ helped Tata increase its market share. Besides, it expanded into new geographies, undertook new launches, took rural initiative, and decided to have a sharper focus on local brands. The company’s core strategy is to look at the large loose tea market and the local brands. It paid the company rich dividends for some time.

HUL decided to fight back. It was successful and beat back Tata in September 2010 with a value share of 22.8% (Tata: 20.2%) and volume share of 18.4% (Tata: 18.3%). HUL played across the consumer pyramid, offering Brooke Bond Sehatmand at the bottom of the pyramid, and Taj Mahal tea bags and Lipton Green Tea to the top of the stack. Besides, it tailored its tea offerings in every state using micro marketing principles. Sehatmand, for example, became Arogya in the South. HUL also revived the core brand Brooke Band Label, highlighting its health benefits. The gambit, for now, has paid off.

THE STUMBLING STAR
The general entertainment channel (GEC) Colors, was a late entrant. So it decided to follow the disruptive tactic of doing the unexpected. The channel pursued two Ds: disruptive programming and differentiation, thereby successfully cutting through the clutter. It began by offering a combo of Khatron Ke Khiladi (to create enough buzz), Balika Vadhu (to cater to the ‘New’ Woman), and Jai Sri Krishna (as a family soap). Nine months into telecast, and it unseated Star Plus from the numero uno position. It won and then retained the top slot in viewership ratings for a good 22 weeks. That was a wake-up call for Star Plus.

Star Plus decided to reinvent itself. It decided to keep pace with the new age Indian woman by continuing with fictional narratives, even if the rival channels had lined up a host of big budget reality. The women characters now depict inner strength enabling them to make intelligent choices for the betterment of their people. Besides, the channel constantly reviews its shows. If a show fails to deliver or has nothing new to offer in its storyline, then it is replaced. Star Plus has even managed to create new time slots at 11pm and 11.30pm. True to its new tagline (Rishta Wahi, Soch Nayi) the channel is offering its viewers a fresh perspective on life and relationships. All this has not only led to conscious repositioning, but also 15-18 of its shows always finding listing in the top 20 slots. The strategy has certainly paid off. The channel is targeting the weekly 400 Gross Rating Points (GRPs; current figure being 340-370), which, if it happens, should mean garnering Rs.1000 crore in ad-revenues. That is nearly 12% out of the total Rs.9,000 crore TV advertising on 500 plus channels!

MERCEDES GIVES RIGHT OF WAY TO THE BEAMER
According to E&Y, India will soon become the fastest growing automobile market globally; currently it occupies the number 2 position, after China. Little wonder then that five marquee names – Chrysler, Kia, Peugeot, Triumph, and Scania – are finalising their entry strategies. In this market, Mercedes has usually enjoyed a position of prominence when it comes to luxury cars. But compatriot competitors have started nibbling away the monopoly share of the company. When BMW, its immediate rival, arrived in India, it targeted the right gaps where Mercedes was more or less not focusing. With the increasing number of C Class 4 wheels rolling on the roads, the aura of owning a Mercedes for the average customer was on the wane; instead it looked swankier to own a ‘Beamer’. Although Mercedes still sells more UVs today (274 in January-October 2011, as compared to BMW’s 256 in the same period, as per SIAM), and is still the #1 in the A4 (Executive Class) segment (1,458 versus BMW’s 1,372 in the same period), and the A6 (Luxury) segment (339 versus BMW’s 307), it’s time for Mercedes to become aggressive and innovative if it has to remain ahead of BMW.

So, the brand has now decided to follow high volume, moderate margin strategy, as against the earlier high margin, low volume strategy. To achieve this, it has made 3 major changes. It has replaced all its earlier models with newer, feature rich, and technologically superior versions but with lower or same price tags. It has launched 22 models since January 2010, quite a contrast to the 25 models it introduced during 1996-2009. Then, it has decided to redesign all its showrooms, which now would have play area for children, and Manish Arora collections for womenfolk. Plus, it is launching its financial services arm and its pre-owned car outlets. Two, the company will have a tech focus. It has installed in the C and E class models, the latest C200 CGI Blue Efficiency engine which, due to its greater fuel efficiency, would appeal to Indian market even more.

SO HOW DO GOLIATHS REFUSE TO GET BULLIED?
The first step to solving a problem is to accept the problem – and the first step towards refusing to get bullied is to accept that there is a danger of that in the first place. As simple as that! 



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Thursday, November 18, 2010

Slumbering Smugness Eats Into The Vitals Of A Brand

When we read the Case Histories of Brands with potential that was not Fully Exploited, We find one Devastating threat linking them all – Complacency!

Rubik’s cube comes with six coloured sides, 21 pieces, and 54 outer surfaces. It can generate more than 43 quintillion (43,252,003,274,489,856,000) possible configurations. But there is only one solution. Despite 30 years of existence it continues to be one of the best selling toys of all times. Harlequin publishing house sells 140 million Mills and Boon copies every year, generating a turnover of $429 million. So, it’s Gods – and some other brands – who can afford to invoke monopoly power. Not the rest of us. In the marketplace devil does not take the hind most; he attacks the front runner. In the real world there are myriads of cases where brands constantly lose ground. They surrender their competitiveness due to a number of reasons – relevance or lack thereof, becoming predictable and formulaic, being outfoxed by smarter rivals, judgment errors, and so on. When we read the case histories of brands with potential that was not fully exploited, we find one devastating threat linking them all – complacency!

BEVERAGE WITH A POLITICAL BOTTLENECK
When Coca-Cola was forced to quit India in 1977, Double Seven was launched as its replacement. The product replicated the taste of Coke one hundred percent. The formula being developed by a government research lab, the central government decided to entrust Modern Beverages India Ltd. (MBIL) the task of marketing it. There existed no capacity limitation or equipment problems so that any desired volume could be supplied. There was no rival brand of course. But MBIL decided to produce soft drinks using a concentrate of only 1 tonne per day. Between 1977 and 1987 the production remained stagnant. In fact, by 1987 the brand had vanished from metropolitans. And since in the absence of a marketing push later entrants like Thums Up (in Western India) and Campa Cola (in North India) managed to capture a fair share of the market. So why did the brand fail even if it had excellent product back up?

For two primary reasons: MBIL’s handling of the bottlers and the perception that the PSU’s mandate was limited to produce bread. Thus, MBIL, used to dealing with small bread retailers, pursued the strategy of getting as many bottlers into its franchise fold as possible. India, after all, was following a socialistic model of development (even in a profit oriented venture!). Naturally, it failed to get the support of big bottlers in the metros. And, true to the PSU mode of operation, the enterprise never promoted the product effectively, so as to build a brand image matching Coke. In the soft drink industry the product cost is negligible; the consumer pays for the promotion costs. However, above everything else the marketing failure was the result of an indifferent government attitude; it promoted the drink till it served a political end. Beyond that no commercial interest. The brand went into neglect. Interestingly, the lab still has the secret formula. Any takers?

Trap No. 1: No marketing orientation, no success in a competitive market
According to IDC, Nokia’s marketshare in Indian mobile handset market has declined from 54% in Q2, 2009 to only 36% in Q2, 2010 (Nokia of course refutes the figure). Nokia seems to be missing the bus for a long time now. Just two years ago it enjoyed a market share of more than 70%. But now it is stranded in the middle of the market. At the lower end homegrown brands and the Chinese products are nibbling into Nokia’s market share while at the top end the likes of RIM, Samsung, and others are making its life miserable. All this because the company has became slothful. For example, when Indian buyer exhibited a clear proclivity towards clamshell models, Nokia had none to offer, supplying only candy bar varieties. And now that 39% of all handsets sold in the country (January-June 2010) were dual sim handsets, Nokia did not have a single model in the segment. The slide explains itself.

Nokia as an organisation, according to the insiders, swollen by its earlier success, has grown complacent, slow and removed from consumer desires. It has been following product orientation as against marketing orientation, primarily because its design approval process is mired in Soviet style bureaucracy. If you need evidence, read on. A few years before Apple introduced the iPhone, Nokia engineers presented a prototype of Internet ready touch screen version with a large display. Management was unmoved and refused to give a green signal for further development. You know the rest of the story where iPhone appears as the hero. During 2004 the management again rejected an early design for a Nokia online applications store – an innovation that all major players adopted three years later anyway. Nokia failed to improve its symbian OS, needed to support a more sophisticated smartphone. Though it introduced the industry’s first touch screen devices in 2003, it failed to perfect the technology to fingertip precision before Apple did. Notwithstanding N8 launch it still lacks a convincing response to iPhone. To make matters worse, Nokia spokesperson refuses to admit that the company follows a sloppy approach towards innovations, that the company has become risk averse.

Trap No. 2: Bureaucratic sloth kills the initiative, ingenuity and innovations
Mercedes Benz is one among many cases where multinationals misread the India market to their own peril. It shares this dubious honour with the likes of Peugeot, Wrangler’s, and Tang ... though not entirely, since it is one of the few companies which has wiped out red ink from its P&L account and now generates net profit. The story needs to be told anyway. Mercedes certainly created the market for luxury segments in India. Yet against a targeted number of 20,000 (including exports) the company actually sold only 1,885 cars in its launch year. First mistake, the company overestimated the consumer’s willingness to buy at a price tag of Rs.23 lakh. That too, through cheque payment! Then, it launched E220 model and not C series, since it wanted to pursue low volume high price strategy. But this model was about to be phased out from world markets. And the affluent prospective Merc buyer in India, who was well conversant with international trends, felt cheated. Further, the company was stingy in introducing newer models in India. Between 1996-2009 it launched only 25 models. In contrast, since January this year it has already launched 22 new models across various segments.

And yet, due to its absolute monopoly in the luxury car segment it wiped out all its accumulated losses by 2005, since when its balance sheet is awash with black ink. The performance thus had less to do with savvy marketing by the company, and more on account of existence of a market that offered no rival choices. So the moment the challenger brand BMW entered India, Mercedes lost its premier position to the new entrant, for the first time since it set up its operations here in 1996.

Trap No. 3: Monopoly status delivers you a ‘hostage’, not a ‘happy’ customer
Examples abound. Heinz with its premium pricing (where customer failed to perceive a clear differentiating reason to pay extra) thinking erroneously that everybody knows the brand in India (not true), MySpace which got eclipsed by Facebook and Twitter because overtime it lost focus, Liril bathing soap which exploited the potential of freshness plank but flogged it till it went stale, or Bajaj which again due to virtual monopoly position offered staid products and predictable communication. Women’s Era created the market for women’s magazine but failed to evolve with the modern readers.

PLUG THE LEAKAGE BEFORE IT BECOMES A DELUGE
Of course some realise their mistake and attempt mid-course correction – Mercedes (now following lower price high volume strategy), Star bouquet of channels (which is regaining its number one position through revamped programming and positioning, after it had lost to Colors), Coke (which realised that every experiment to undermine Thums Up was actually benefiting Pepsi more than Coke), and many others.

So, let complacency not consume your brand. You may not get a second chance to regain lost ground.


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Thursday, October 7, 2010

HIGH PERFORMANCE MARKETERS DREAM, DARE AND DELIVER!

Ten lessons to learn from marketers who have either given the world some best-selling brands, or have failed miserably in their efforts...

The latest SMS joke doing rounds goes something like this: The teacher told the class, “Introduce yourself and say what does your dad do?” When his turn came, a boy stood up and said without battling an eyelid, “Sir, my dad works as a male stripper in a night club.” Lost for words, the teacher gestured him to sit down but later confronted him, “Well, there are subtle ways of putting it, and aren’t you ashamed of what your dad does for a living?” The boy replied, “Sir, actually I made that up in the class. Honestly, he works for the Commonwealth Games Organising Committee and I was too embarrassed to reveal his real occupation!” So who do you think will take the crown to head the Hall of Infamy once the year ends, considering all the news about the CWG 2010 that has been doing the rounds? [There is no prize for guessing the right answer.] The logic is simple: Authorities have been wrongly marketing the state of affairs with anything and everything to do with the Games. But moving away from disgraced marketers and disappointments, let us talk about those who are star marketers, and why...

So what if I am queen of kitsch?
Let’s get quizzical. Who declares that AB junior is a better actor than his Paa? Who claims that ‘there is nothing natural about Amitji’ or, that poor Salman Khan is being repeatedly used by his girlfriends for climbing up the career graph? Which brand stands for brashness, crudeness, and unsophistication, but to whom, Prabhu Chawla (from Aaj Tak) admits that much against his own wishes, “I have to invite you to Seedhi Baat since the audience demands it”? One of the top business magazines had included Rakhi Sawant in its list of best marketers of 2009. The façade is carefully cultivated by Rakhi.

Lesson #1 to become a star marketer: Be uniquely relevant to your target audience.

Of vision and Dreams...
Henry Ford’s dream was to build a car for the masses, constructed by the best men, using the best material and having the simplest of designs. It was to be priced low so that every one with a moderately good salary could afford it. This dream sums up his marketing philosophy and the spirit of the Ford brand. First to introduce the assembly line in 1914 and mass produce cars, he made them affordable for all. A technological genius, he followed his passion and became the force behind an industry of unprecedented size and wealth that in only a few decades permanently changed the economic and social character of USA. A few years short of a century later, another great visionary, Ratan Tata, dreamt of a Nano and brought it to fruition.

Lesson #2: Dream big, live it, and enact it.

The first family of organised retailing
Kishore Biyani has changed the way we Indians shop. Focussing on decoding the Indian consumer, his singular goal is to respond to the needs of the Indian masses. He says that he knows only one way of attaining LSD – Laxmi Saraswati and Durga (goddesses of wealth, knowledge and emotional well being, and power) – by following the consumer way. The `10,000 crore plus Future Group is perhaps the only successful company in organised retailing in India today. Biyani has an uncanny and profound understanding of the Indian consumers.

Lesson #3: Consumer focus is the key; rest will follow.

I am the change agent!
Barack Obama relied on nouveau marketing tactics like online contribution through his electorate friendly website, mobile messaging to connect with his voters, and so on. He adroitly packaged himself as a product, selling hope and change to fellow countrymen. His catchphrase, ‘Change you can believe in’, struck the right chord in a country that had lost faith in the establishment and was looking for a saviour. Obama came as a relief, as a trustworthy alternative, produced and packaged very slickly.

Lesson #4: Connect well with your customers.

Hum hein Chulbul Pandey!
The successful Dabbang actually signals the thumping return of the delightful subgenre, the unapologetic mainstream masala flick. Salman fills the gap of being ‘man of muscle’, but not necessarily the conventional hero incarnate. He has positioned himself as Bollywood’s premier action hero. The dream combo – soft face, tough body (reminding you of Dharmendra of the ‘70s) – compels the women to ogle at him and men envy his rippling muscles bursting through the seams of his shirt. Now, everybody does not necessarily dig at We are family. There is life outside the multiplexes.

Lesson #5: Bridge the need gap existing in the market.

I am young, I am the future
During the General Elections of 2009, the heritage party promised the usual – stability, secularism, good governance. However, what was new and unique to the Congress’s marketing strategy was Rahul Gandhi who brought the youth in the mainstream of politics. He infused sincerity, positivity, and freshness in the Party’s plans. RG, the brand, represents youth, dynamism, and new-age thinking. He easily connects with the masses, has charisma, transparency, down to earth demeanour, and a relentless focus on galvanising youth. Still evolving, it is to be seen if he will have his Obama moment in 2014. He is still perfecting the art of marketing.

Lesson #6: Cultivate new segments as per your strengths.

Badshah of marketing
SRK is worth `1,500 crore. He has the sharp vision of a businessman. At the core of the casual exterior exists a canny entrepreneur, who is quick to spot an opportunity and get cracking at it. He has the requisite skills to run businesses that he does, the qualities that meet the job specifications for becoming a CEO and capabilities of an inspirational leadership. He has successfully helped launch new products and brands in relatively untested markets. With a strikingly clear vision and great ambition, he is a great researcher, a coach and a player, and a meticulous manager – traits that make him a quintessential marketer.

Lesson #7: Use your strengths to full advantage.

Mr. Perfectionist?
Aamir Khan, knows how to influence masses. He made people change their hairstyle and bulk up after Ghajini, become more empathetic towards children with learning disorder after Taare Zameen Par, and even rethink the Indian education system with its warts and all after 3 Idiots. His last four releases have collected `600 crore at the box-office. Raju Hirani calls him a marketing monster. Aamir the marketer is even more precious than Aamir the actor. His big success is in running a production company which has cent percent record of super hits – three out of three.

Lesson #8: A better mousetrap needs marketing too.

A check list should consist of not merely Do’s but also Don’ts. Let’s therefore also narrate some entries from the Hall of Infamy.

I am Lalit Modi AKA IPL
There would not have been an IPL without Lalit Modi choreographing it. However, he became too sure of his invincibility & piled up one fatal mistake after another. He caught up with his nemesis when the fantasised immunity cover crumbled with the govt. unleashing its wrath on him. He built the IPL to a $4 billion-plus level, but on the way razed his own equity to ground.

Lesson #9: A megalomaniac marketer bites the dust.

Crash landing is a real possibility
Paramount Airways was the poster boy of Indian aviation. While others were immersed in red ink, it was awash with profit. But the promoter M. Thiagrajan failed to do his arithmetic right. Driven perhaps more by passion and integrity, not logic, he failed to appreciate the fact that airline business is a great money guzzler. He failed to honour his commitments. A good product got grounded even before it could start gaining heights.

Lesson #10: A successful marketer has to be an astute businessman too.


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