Tuesday, September 21, 2010

DIFFERENT STROKES FOR DIFFERENT FOLKS

Brands and companies that wish to succeed in the emerging rural market need to employ strategies which allow them to be a part of the consumer’s daily life...

India is fast becoming an emerging market with an estimated 150 million strong middle-class consumers. Stretching across the length and breadth of the subcontinent it has long fascinated domestic as well as multinational corporations around the globe. In fact, now the dream is blazing brighter than ever as the Indian rural market is displaying a marked inclination towards consumerism, outpacing the urban market in its ever increasing demand for an array of products and services.

The basic surge in the demand for consumer products is not anymore confined to the people with high levels of income. Even those who appear to be less privileged buy and use such products. Significantly, most of the purchases are made from the households’ own income. Higher purchases schemes and loan account for only around 10% of the rural buying. As a result, like all other mediums of communication, activation and experiential marketing has also seen a massive surge in opportunities in the emerging Indian rural market, as brands now have to increasingly rely on consumer – brand experience to capture mind share against extremely strong local products.

In a market where life revolves around deep rooted community values, joint families and social customs, a pertinent question pops up: Does one size fits all or does one needs to make specific strategies to target emerging Indian consumer? Our emerging consumer is not the savvy “I know it all” of the metro as yet. Yes, as in almost all other media for activation too – it’s different strokes for different folks!

For marketers in the last decade, making space in this emerging consumer market has been fairly simple. The famous video on wheels road shows, the branded smaller trucks, and the likes have done endless rounds, season after season for almost every product. However, in the last few years India has truly evolved with the TV, movies with their endorsements and even the electronic medium has seeped into the rural fabric. They know their brands and have opinions. So, is the ‘song and dance’ or the ‘show them a movie at night’ is really all it will take now?

The time is ripe for focused and relevant messaging and activations that build relationships. To appreciate and understand the emerging consumer’s decision making process one needs to understand the culture of ‘emerging India.’ The social structure of this TG is built around the immediate family, local business community, regular meetings at mandirs, community participation in festivals, et al. Hence, this impacts the entry points to consumer’s life where his purchase decisions are heavily influenced by someone close/trusted like family members, friends or even local dealers/agents, and of course if the product drives aspiration. Interestingly, rural youth is slowly evolving as the ‘opinion leader’ in influencing brand and product decision in a market that was swayed by village elders for centuries. When building a brand in rural India, word-of-mouth is a huge motivator. Initiatives like participation at community events such as annual melas, haats and street theater, continue to generate awareness and influence buying decisions.

Comparatively evolved involvement with schools, sponsoring sports teams or clubs, adopting associations, and building associations with panchayats create a positive word-of-mouth. A plan which activates word-of-mouth goes a long way in forging a longer lasting relationship. A case in point is Dabur Chyawanprash with the objective to reach out to mothers through kids to make them aware of the importance of Chyawanprash in their children’s everyday life. A unique concept of ‘Androoni Shakti Choonauti’ for the kids was conceptualised promoting the brand across schools. Post an interactive session and a product audio visual, letters were sent to mothers including a slogan contest and discount coupon. In fact, in select markets over a lakh students translating roughly into the same numbers of households were contacted. With a 50% response the brand was not only able to build a significant relationship with the consumers but also add on to the numbers. Certainly activating emerging India is all about having different strokes for different folks!

Ambika Sharma is the National Head of Jagran Solutions, which in 2009 won 23 awards at the 10th PMAA event at Singapore

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Friday, July 30, 2010

Environment or Envy?

With world leaders gung ho about COP15 on climate change; global warming has caught the imagination of Indian media. Corporates too are happy to dabble in this green marketing game and ‘green meetings’ are the buzz words in India Inc.’s corridor of power. Not to be left behind, the hospitality industry is also turning on its green charm. Big star hotels like Ecotel, Orchid, ITC Royal Gardenia and Renaissance are gearing up with various new concepts to lure customers. The idea is to provide corporates with everything which is eco-friendly including the scrumptious delicacies on the menu. So the average menu has begun reading like a dream for the size zero aficionados viz. fresh, organic and local delicacies that in turn translate into lower carbon foot prints. An independent hospitality industry analyst explains the rationale behind these overtures, “The expenditure incurred on such meetings is at least twice that of a conventional meeting which is a key reason for hotels to dabble in this. It also increases employment and creates a ripple effect for the hotel business.” Presently, green meetings contribute just 1-2% to overall hotel revenues, but the same has the potential to reach 8-10% levels by 2012. Is that your saliva turning green?

Neha Saraiya

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Monday, June 21, 2010

Help yourself, please!

The persistent turmoil in the aviation sector coupled with the mounting losses quarter after quarter (all thanks to the increasing input costs) have left Indian aviators high and dry. Moreover, all the major players, which include Kingfisher Airlines, Jet Airways and Air India, are also over burdened with huge debts mounting over them. While, Kingfisher Airlines has a debt of about Rs.90 billion, Jet Airways has a massive burden of about Rs.150 billion on its back. Well, the less we talk about Air India’s financial standing, the better it is! All these financial obstacles have forced the domestic players to urge the Civil Aviation Ministry to relax the FDI investment cap from the current 49%. However, a pertinent question that arises is, will this proposed increase in foreign investment in the sector actually solve all the problems of the airlines? “Airlines need to ensure that they match capacity with demand. There are currently too many airlines, with too many seats, chasing too few passengers. This will require more effective management as well as consolidation in the form of mergers and market exits,” suggests Binit Somaia, Regional Director, CAPA. Surely, apart from foreign investment, the airlines should also look at route rationalisation and cost cutting as effective measures to overcome the crunch. Somaia also highlights the role of the government in pulling the players out of the quicksand as he says: “The government’s key role is to provide a regulatory framework that provides certainty to investors, which is currently missing in the aviation sector.” Thus, it is not only the financial support that is required, but also the various aforesaid measures that must be adopted by the bleeding airlines to help themselves.

Ratan Lal Bhagat

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Wednesday, June 02, 2010

The brand was in deep financial trouble till just about three years ago.

Today, a new management, cash infusion and a fresh communication, are striving to bring back brand OCM. The Amritsar-based textile manufacturer, which missed out on its big chance is now back with a vengeance demanding its due. By Angshuman Paul

The 36 acre OCM Estate runs parallel to the Grand Trunk Road in Amritsar and its serene outer facade almost transports you to the time-honoured colonial era. But walk inside the sprawling premises and you would perhaps be almost startled at the sudden flurry of activity that will surround you. It is this perceptual dichotomy that captures the past, present and future essence of this worsted suiting producer more than anything else. For a brand that had almost disappeared from public life over the past few years, the zest and energy at the OCM Estate these days is almost tangible. Spanking new billboards and hoardings have mushroomed across the complex featuring the new goals for OCM’s managers; men and women walk about with a definite purpose and a swing in their steps; someone is talking animatedly into the phone about the recent boost in OCM’s institutional sales figures, while somebody else is showing off a PPT of the recently concluded OCM Dealer’s Conference in Dubai to an audience of premium dealers shortlisted to take forward OCM’s new retail ambition of opening exclusive brand outlets across India and even Europe... WL Ross, the US-based private equity fund management company, which acquired the loss-making OCM from the S. K. Birla Group for $37 million in 2007, is seemingly leaving no stone unturned to not just get brand OCM back on its feet, but to perhaps, even surpass its past glory many times over.

To understand the changes in OCM’s present, it’s important to appreciate the brand’s past. Originally intended to manufacture carpets (OCM actually stands for Oriental Carpet Manufacturing), OCM was started by a group of British merchants from the East India Company and has changed ownership thrice ever since. The first was when India’s oldest business family intervened and the S. K. Birla Group acquired OCM with an intention of manufacturing suiting materials. Under the Birlas, the brand name shrunk to its acronym OCM and emerged as a textile behemoth, with an annual production capacity of 8.4 million metres.

But losses were heavy and three years ago, when WL Ross & Co. bought the ailing company, fresh funds injected were first used to repay OCM’s mounting debts. Analysts say that though OCM was sick financially, it had created a huge brand value as a tweed suitings producer. Likewise, the first big investment that Ross made in OCM was of Rs.75 million for re-engineering OCM’s brand image in the Indian market.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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