Wednesday, April 28, 2010

Cola Wars: Where have they gone?

Summers have set in late March this year, yet we don’t get to see much, the war of coloured, sugared, fizzy water on our television screens.. Usually it is the time, when two cola giants spend a lot on TV and more....

The cola wars are actually confrontations made to look like battles by the major cola marketers. The idea is to elevate an otherwise dull and drab category into a high appeal class that has the entire nation gossiping about the television mêlée. The cola giants depend on community media such as television, print, radio, internet and not to forget the social networking sites to chitchat more and take the battle ahead. These battles have been waged season after season and the ingenuity stands worn out in these continuous conflict. I may not be wrong in quoting, that the USP has been exhausted (my readers, if any, excuse me for that) and if one does the same thing repetitively, things are going to get monotonous. Hence, I believe the lull… Colas will undoubtedly continue to remain a big category as India continues to be a major cola market……..

The only larger drink is water… let us look forward for the battle of waters now.

Monday, March 22, 2010

The Fourth Screen

The mobile phone is taking over as the universal medium for most Indians. It is drawing the internet onto its small screen and turning into a tool that offers more than calls and SMS. This is making the mobile screen an increasingly favoured advertising tool. Santanu, my bro, is a true inhabitant of the wired world. Right from the moment he wakes up to the time he hits his bed, whether it is the last minute changes to the client presentation or to check the latest cricket score or to catch up with friends on Facebook or even listen to some foot-thumping music……. His world starts and ends with his Blackberry. This shows how seemingly innocuous looking gadget is quietly taking control and touching our lives in ways unimaginable.

As mobile telephony grows rapidly, it is used not just for voice communication. Even SMS is passé today. Multitasking is the operative word here with a camera, computer and music player, all packed into the hand held. From downloading software to games, entertainment to accessing content across genres, mobile users are looking for new ways to personalise their handsets with utilities and multimedia content that make their mobile experience richer.

The Indian media and entertainment industry stood at Rs 58, 400 crore in 2008 and over the next five years, the industry is projected to grow at a CAGR of 12.5 % to become Rs 1,05, 200 crore by 2013. (FICCI ; KPMG) Though internet advertising contributes only 1.8 % of the country’s total advertising expenditure, it has grown a whopping 65% as against 17% growth of advertising on the whole. The newer options for marketing communication are on the shore and are harnessing the hot market of the current time. With the upswing of mobile market and swift rise in their sale, business people are taking the mobile medium as a promising sector for marketing and advertising. For the past few years, marketing practitioners have been suggesting that mobile devices would become the next generation marketing channel and supersede print, audio-visual and email and even web. With 400 million mobile users and 8-10 million more every month, India should be one of the hottest markets for mobile advertisers.

Often called the fourth screen after the TV, Cinema and the Internet, the mobile phone is the way to connect with the next billion and the increasing middle-class consumers in Brazil, Russia, India and China. For consumers, the mobile phone has become more than a communication device, it is now a complete entertainment gadget.. They expect their mobile phones to double as state-of-the-art digital cameras, gaming consoles and web access. These uses increases advertisers’ chances to connect with consumers on the move, who get engrossed in these multi-tasking devices. Mobile advertising will receive another boost because of the shift in the advertising industry itself. Advertisers are focusing away from broadcasting through a one way medium to narrow casting for one-to-one consumer engagement and feedback. Marketing is changing from mass-media-push to mass-customisation-pull… PULL IN ANYONE, ANYTIME, ANYWHERE is the mantra.

Will keep updating the latest marketing moves made by the hand held device, from time to time..

Thursday, March 11, 2010

What does a customer want?

Brands are continuously trying to augment their relations with customers. But is it wise to invest in the front end of the business or on product modernization that will keep customers happy in the long run? What is the hush-hush recipe for any company or brand to retain its customers for life? Is it innovative product? Amazing services standards or engaging customer loyalty program? Unmatched store experience or store design of international standards? These are few million dollar questions that are faced by most of the CEOs today.

Today the customers have multiplicity of choices even in the same product / services category. As customers’ aspirations keeps on changing, his / her spends across various categories keep on shifting. When we talk about spending money on entertainment, there are plethora of options- TV to watching movies in a multiplex, to watching cricket matches or even hockey matches, as it is promoted off late, to seeing a musical program or a drama or many more. Each of these are mutually exclusive and cannot be consumed simultaneously and hence fight for the same wallet share. Also we should not forget the fact that, consumers are always hard pressed for time- either travelling for work or for leisure or spending quality time at home. In such a scenario, consumer’s make a choice by using their heads and hearts—the former helps them towards making a rational choice while the emotional appeal connects them to the heart. Whether it is a cute character called ZooZoo or a star brand called SRK / Sachin Tendulkar / Big B.


Besides, this is the age to flaunt. Many marketers believe that a larger than life marketing launch will pave way for brand’s success. They assume that breakthrough clutter free advertising, big stars as ambassadors or even owning media vehicles will lead to enhancing a brand’s connect with their customer. Many leading Indian companies have taken this trend seriously and have been spending big bucks on the touch points of the customers.

Since last 2-3 years, film marketing has taken a new edge. Several contests, events, appearance on the reality shows combined with tittle-tattle about the leading pair (KITES.. Hrithik Roshan -Barbara) or even trade in tie-ups have been able to create a pre-launch excitement about the film. Corresponding to this, technical aspect of film making has improved with bigger budgets, striking locations, better quality prints and sophisticated multiplexes. However, much efforts goes down the drain, if the core product is an average one. In spite of all the media glitz and hype some films vanish. (Chandni Chowk; Blue or even MNIK). We may contrast this with the success of IPL which is now a $4 bn franchise only in its 3rd year. The mishmash of film star power, international cricket star power, the backing of top brass of cricketing authorities, cheer leading ladies, the sponsors big advertising spends would have fallen flat if the games would have been trite and colourless. The triumph of the low – profile Deccan Chargers or Royal Challengers proved once again that at the end of the day, talent and cricketing prowess counts for winning a game rather than a star power.

Marketing fireworks is like Sone pe Suhaga…it cannot breathe life into dead product.. The key for connecting to the customers’ heart & head is the great product / service. Great products brings in large number of customers again and again, bringing in high profits. Winning businesses require such players to fuel their continuous growth making them successful and connect with the customers through a blend of great touch points and superiors products and collaborate with customers all the time.

Thursday, February 18, 2010

Global Bollywood ?? Global SRK ??

How important it is to have the patronage of a Hollywood studio giant for a Bollywood film to get the kind of visibility of MNIK has got? The answer, as the box office results come pouring in from overseas, is clear: whatever its creative genious, K Jo’s newest film, which marries such incongruent subjects as disability and religious identity to raise the flag of world peace, has attained the distinction of being the biggest Bollywood release till date.. Truly, Indian films are no more confined to Indian territories or Asian borders…it has become a global entertainment service … a perfect example which I was compelled to quote to my students while delivering a lecture on Global Marketing, yesterday evening.

MNIK made Rs 25 crore on opening day and the box office results suggest that, finally this may be the big fat Bollywood movie which really cross over. From the zealous embrace of NRI loyalist, for whom SRK has godlike status, to the non-traditional audience which may finally be willing to experiment with full blown Bollywood film, (thanks to TV channels, I get to see more of SRK these days than my family members) to holding out, as blandishments, the biggest Indian star, unabashed emotional moments, in a subject which had universal appeal. Who doesn’t want world peace? … Again a Global Issue

The film has been slammed in several quarters as being opportunistic, of being made simply to succeed in the west. It needed to be different, so K Jo (director-producer) dreamt up a central character who has Asperger’s Syndrome, a kind of autism which makes brain cells work in superb order, but leaves the person socially inept… Here I am compelled to imagine how a socially inept Rizwan (SRK) could woo Mandira, played by the bong beauty Kajol… guyz need to take some tips from him.… US audiences will probably not accept anything too Indianised or too alien, thus a familiar location… K Jo is known for mounting his films extremely lavishly with foreign locales and MNIK looks lovely all painted up warmly on screen. SRK is both more or less normal than average Asperger’s person, but that’s because it is next to impossible for a normal person to get what is like to be an autistic person. Hats off to SRK’s acting competence !!

However, the box office frenzy over the weekend usually does drop after a Monday, but trade analysts say the film lost out a huge, nearly Rs 5 crore as it was not released completely in Mumbai on its opening day, thanks to Shiv Senas. However, what is noteworthy is the film’s global takings : if it can hold on till next week. MNIK will be the film to bang in the global mart. Shall have to wait and watch..

Tuesday, October 13, 2009

WOWing the shopper !!!!

What are those elements that go into making a never to forget shopping experience?

Peoples’ expectations are high. It is easy to fall short of those expectations and hard to eclipse with something that’s over the top. A recent research report carried out by few of my students on "Discovering WOW- A study of Retail Shopping Experiences in the Metro Cities," points to five major areas that contribute to a never to forget shopping experience.

The ingredients of WOW

Brand Experience: Exciting store design and atmosphere, consistently great product quality, making customers feel they are special and that they always get a deal.
Expediting: Being sensitive to customers’ time on long check-out lines, being proactive in helping speed the shopping process.
Engagement: Being polite and interested in helping, genuinely caring, acknowledging and listening
Executional Excellence: Patiently explaining and advising, checking stock, helping to find products, having product knowledge and providing unexpected product quality.
Problem Recovery: Helping resolve and compensate for problems, upgrading quality and ensuring complete satisfaction.

Retailers can focus on creating a platform based on five major pillars of retail satisfaction to increase the probability of creating a wow experience.
Brand experience and engagement are the strongest drivers of loyalty. Younger consumers aged 18-30 were most likely to recall having a great shopping experience. Their experiences are coloured by greater comfort with multitasking and familiarity with the internet, making them more transaction oriented, rather than relationship oriented and less tied to brick – and –mortar stores. Those over age 50 like being treated and acknowledged courteously.

In the current recessionary climate, though price is important to consumers, but it is only one factor in the overall WOW shopping experience. It is the product excellence that matters more to modern consumers. While the Great Depression led to an era of penny pinching, today’s economic crisis is leading consumers to focus more on value than price, specially with credit cards, retail and telecom. People are being more scrupulous about what they buy and where they buy from. More educated customers are looking for a better value in everything. Hence, despite shortages of resources and store closings, it is still possible to delight and surprise consumers. The possibility exists when retailers have everything in place. The best way to lay foundation to WOW customers is that store owners to hire and train staff who are able to take basic information about shoppers’ preferences and convert that knowledge to customized service.

Monday, August 17, 2009

My name is (not) Khan

Well this piece has nothing to do with K Jo’s forthcoming film “My name is Khan,” but the recent hue n cry created by the King Khan.. ala Shahrukh Khan ( who happens to be one of my favourite) and the media, on the former’s recent visit to the US. Even the former President of the country was also frisked in our own land by the staff of an US airliner and very few eyebrows were raised. In fact there are many Indians, who were frisked.. Mr. Pranab Mukherjee, Irfaan Khan, Neil Nitin Mukhesh, Salmaan Khan, Jayanti Natarajan, to name a few.

I fail to understand, why we Indians are so conscious about the VIP status, specially when the formality is carried out at the cost of the security of a nation and involves the lives of millions? We, Indians are very emotional, and very easily tend to forget the consequences of ghastly terrorist attacks. I am actually surprised that SRK, who happens to travel to the States, very often, is passing such a remark, rather he should be used to such a practice.. (yes it would have been wrong, had they strictly limited to carry out such a formality on the basis of a particular religion) Very recently, the US cops were found seeking ID from a Professor of Harvard and most surprisingly from American Icon & Legend Bob Dylan. This is the reason, why no terror attacks had taken place in the US post 9 / 11.

It is high time, we Indians should learn from the US. Though the Honourable T & T Minister, Ms. Ambika Soni said that we should also do the same (Tit for a Tat) with the US celebrities / VIPs… the protocol should be religiously followed in our country, no matter whether there are US celebrities, Indian VIPs, Pakistani nationals or aam Hindustani… Thank God,my name is (not) Khan, and I am a common Indian and I would not mind waiting for hours, if it demands so, for my nation. Jai Hind.

Sunday, August 2, 2009

Repositioning is in Fashion

The challenge for today’s market leaders is to reposition so as to sustain. It is always tempting to compare the competence of today’s leaders with those of the previous generation. People who have watched Gavaskar take on the best fast bowlers of his time would certainly rate him higher than Sehwag. People who have watched Big B on Don might rate him on a higher scale than SRK.

A leader is a function of the times he lives in, just as much as a batsman is function of the opposition that he bats against and the pitches that he bats on. The biggest challenge for today’s leaders is to reposition themselves to the point they aspire for. Starting from consumer durables, FMCGs, footwear, entertainment, media houses, advertising agencies, web portals have repositioned themselves. To add to this, even Himesh Reshammiya (Jai Mata Di, Lets rrrrock, fame) for his forthcoming film has repositioned his voice, keeping aside his new looks. As a teacher of marketing, the theme excites me and hence, collected few information on revamping/ repositioning workouts, which, I thought to pen down on my blog.

Media in India has transformed. From the few mainstream papers and one TV channel, the industry has metamorphosised into a maelstrom of choice. It is only few years back, the newspapers were busy saying “no space” and even magazines like India Today wished they had multiple “ front sections;” so acute was the demand for space and preferred positions. The performance of media managers were evaluated mainly on their ability to get space. The emergence of cable and satellite and the growing literacy of India has lead to vernacular media making its presence felt in more ways than one. Regional media is growing and is no longer the country cousin of English.

In the footwear market, Bata is on the front foot; seventy five years and still running strong. Generations have gone to school and grown up on Bata. Now the footwear major is re-inventing itself to appeal to a younger generation. The first footwear brand to set foot in the country, Bata is now looking to “surprise” customers with an expanded range- all at “great prices”- in a new and improved shopping environment. While being strong in men’s shoes, Bata also has grown in the ladies, children and sports segments. Furthermore, they also launched a new specialized division “ Bata Industrials”, offering footwear meant for various sectors such as defence, automobile, agriculture, construction, agriculture, metals & petroleum. The stores are now more spacious with more than 3,000 sq.ft of retail space, some are even larger than 10,000 sq.ft, not to forget that these stores have been designed by a specialist team of retail designers from Italy in collaboration with in-house team of architects. Bata’s retail environment underwent major changes with superior store fit-outs and furniture. Although the global meltdown did induce Bata to cut down its expenses, the company did no compromise on expansion or even modernization. With a revamp and new product range, Bata battles it out with the players in the organized sector like Adidas, Liberty, Nike, Reebok, Khadims, Metro, Woodland and many more.