Marketing Ganga

Author: Shabbir Chunawalla

  • Brand Building Advertising Campaigns

     

    Any successful brand is generally backed up by strong advertising and promotion. Pepsi is the choice of  ‘young generation’ and ‘generation next’. Maggie noodles is just ‘two-minutes’ meal. Complan is completely ‘planned food.’ Indica is  ’ more car per car’. Wills Filter cigarettes are ‘made for each other’. Campaigns have the potential to build up brands and business. In a campaign, a theme or idea is advertised with consistency. This idea is integrated to all other communications. A campaign carries the same idea with different execution in future ads. A campaign gives a consistent look or feel.

    Some of the elements of a campaign are as follows :

    Visual Similarity

    The same visual image continues in a series of ads. Maybe a spokesperson gives this link.The grandma of Ayurvedic C oncepts is such a spokesperson. A character can be created to perform this function. Animal symbols like a monkey in Bytco tooth-powder, a tiger in Goodlass Nerolac, an Appu boy in Asian Paints and a Maharajah in AirIndia ads is such a visual link. Esso with a tiger symbol changed to Exxon but though ‘it changed its name, but not its stripes’. A demonstration that appears in every ad also can hold a campaign together. Milk being poured into a glass or moisturizing cream pouring into Dove Soap are examples of how a short sequence carried from ad to ad provides visual similarity.

    Verbal Similarity

    Some people think that sloganising is the be-all and end-all of a campaign. It is not so . Words thrown at the end of a commercial may be just throw-always. They may not be relevant for the brand. Some slogans, however, are classic and have a long life. But this life is derived by investing in its extensive use. Just on papers they do not seem to be great and lasting campaign words. We should use a set of words which capture the essence of the product or company. A distinctive sound or music can help a campaign to register.

    Similarity of Attitude

    Maybe , there is no distinguishing theme line in a campaign, especially when they are initiated. But they have a consistent attitude towards the product and target audience. Some campaigns are built on quality, values, authenticity, style and so on. Attitude is on expression of brand personality.

    Product Ideas, Not Just Communication Ideas

    Products are positioned not just by communicating what they stand for but by incorporating the positioning idea  at the design stage itself. Later these are expressed in advertising. Thus half-an-hour-delivery of Pizza is possible by scheduling each stage properly e.g. preparing, baking, packing and dispatching. This is built into the product. It is not necessary to improve products to get the ideas. They may be present in the product as it exists. They should be properly highlighted by advertising.

    Evolving a Campaign

    American Express is built on “don’t leave home without it”. This idea supports travel-related services, banking, and credit cards. Amex depends on its prestige position and service superiority. It thus has a consistent personality and user image based on prestige. Its built-in marketing idea is service of personalized nature around the world. Its umbrella theme is  ‘don’t leave home without American Express’.

    Changing the Campaigns

    Even the most original campaigns need to be refreshed. The whole environment changes. ‘Neighbour’s envy and owner’s pride’  for Onida TV based on jealousy and sense of prized possession is no longer contemporary with a host of TVs which are as good-looking as Onida, or even better. A campaign thus cannot be sustained on this old theme any longer. It must evolve to keep pace with the time. Only then it remains relevant. A campaign is refreshed by using new ideas and improved products.Campaigns also show wear-out, when markets change. Campaigns must be changed before their full potential has been realised.

    Integration

    Other elements of promotion like direct marketing, sales promotion, public relations and an advertising campaign must be integrated. It is necessary to give unified product/brand image. The message retains its focus. A brand strategic view is taken where each element has to contribute something. Integration of communication needs a good grasp over the media and the authority to coordinate so as to create a campaign.

  • New Age Marketing and Segmentation

     

    Marketing has undergone a complete metamorphosis on account of rapidly advancing technology. It is possible to do precision marketing by making use of a rich database on consumer habits and preferences, right media planning and direct marketing databases. Precision marketing is aimed at specific segments or even individuals. The major advantage is reduced wastage and a highly personalized message.

    Though mass marketing is necessary for several products and services through mass media, it is possible to reach smaller niches and well-defined targets by alternative media.

    Markets are segmented on the basis of attitudes and demographics. There are new segments based on people’s attitudes towards environment and products. Marketers match the ‘attitudes’ towards products and services with attitudes in society. In this high-tec age, a new attitude segment of the new achievers have emerged who create their own distinctive life-style; divorced from old symbols of achievement. A new segment of time-seekers  value leisure time, and they give up current income for leisure time. They are ready to pay a premium for products that give them time e.g. smart phones, tax machines, e-commerce etc. Senior citizens are no longer old haggard, but are young in spirit. In promotion they would not like to be shown as infirm invalid and sexless. They are shown in young company. There is an awareness that they have a right to an active life. They can select several products for them such as low-sodium salt, low-cal drinks etc. Investment consultants, counselors, clinical psychologists, agony aunts, critics of literature and movies, fashion consultants, consumer reports on products, informational support – all these tend to act as  life simplifiers   which help to choose us the right things. Brands are preferred as they are a shorthand that makes the choice easier. Premium brands, once exclusive for the elite are now for everyone. They start with quality and not snob appeal. In promoting premium brands, understatement is a better strategy. It gives great satisfaction to people to discover a product no one else knows. When so many discover the product, it falls from class to mass. Women as a demographic segment are addressed to by many companies. Women are not to be treated as separate gender, but as consumers. Working women need labour and time saving devices. Though they respond to emotional appeals, they are not irrational either. They could not be stereotyped. Children is another important demographic group. They should be educated to become responsible and informed consumers. Children do watch a lot of TV, especially the adult programmes. While communicating with them , we should use an element of fun. Children also like reality. Barbie doll help little girls live out of their fantasies. It remains consistent with contemporary life style. When a product is given personality, children remain loyal to it. Music is the key to appeal to children. We should talk to children in terms of their experience. Though children influence buying decisions in family purchases, we we should also buy separate advertising to reassure the parents.

  • Why Brands Fail ?

     

    There are many reasons for brand failure. Maybe it is a case of bad product. Perhaps, no proper research was conducted. Marketing mix can be faulty e.g. bad pricing or bad distribution or bad advertising. When there is no apparent reason for failure, we call it plain bad luck. However, the most important cause for brand failure is bad thinking or in other words bad strategies. Just a strategy statement is not enough. While formulating the strategy, we should keep in mind the following.

    Be consumer driven

    There should not be emphasis on the mere attributes of the product. We should keep in mind consumer behaviour.

    Common cold affects two categories of people — those who keep indoors for rest when they catch cold and those who move out and work even while suffering from cold. Contac  is positioned for the movers since it ‘keeps –you-going’.

    Re-define Research

    Research itself is not always perfect. We mostly read the operative part and accept it as gospel truth. Research may have subjective bias. Dissect the research report thoroughly. Examine the questionnaire. See whether the right questions were framed.

    Concentrate on the Crux of the Matter.

    Sometimes, we tend to state to state what is pretty obvious. All of us know that frozen food are convenient. What matters more how they taste.

    Meaningful Benefit

    Though we can derive a number of benefits from the products, we have to restrict ourselves to the more meaningful benefit. Detergents have to clean and cold remedies must provide the relief. Even Diet Pepsi has to refresh, though it provides only 1 calorie and controls sugar and weight.

    Popularity As the Main Benefit

    The most sold brand sells most due to some reason. The most sold status is a consequence, and not a cause.

    Price Strategy

    Mere price with no regard to quality is not a good strategy. Sooner or later, we must strike a price-quality equation which  provides value to the customer. We may buy an economical car but it does not last for a long time. This is poor value. A car that lasts with minimum maintenance costs, is luxurious and gives resale value is an example of good value.

    No Arguments

    In financial advertising, just cold facts won’t do. People do not perceive them properly. We have to justify us by relevant information or reasoning.

    Bundle of Benefits

    Who buys just a combination of ingredients or parts? We buy some expected benefits. Are we buying a quarter-inch drill or a quarter-inch hole? Just attributes are not the benefits.A computer may have processing power  –it is speedy. It is the attribute. But its speed saves our time. It is the benefit.

    Mother Brand

    Never dilute the property of the mother brand by extensions and improvements.

    We should not fiddle with the long term brand strategy right at the beginning. It should be the last thing to change. The reasons of brand failure may lie elsewhere.

  • Ultra-high Definition TV

     

    The 4K TV set is ultra-high definition with unbelievable clarity. It packs twice the horizontal and vertical resolution of full HD TVs, the 1080p ones. It has a resolution of 3840 x 2160 pixels, compared with the 1920 x 1080p of a full HD set. These TVs had sizes of 82 inches plus to accommodate high pixel density. They are too large for most households. Broadcasters are still struggling with full HD channels. It is not possible for them to beam 4K content, which is four times heavier, right now. This is changing. Sony’s 4K models are 55 to 65 inch, priced at Rs 3 to Rs 4 lac respectively. It is likely that Samsung and LG will follow suit. However, the chances of  of a 4K channel in India are not so good. Elsewhere, the content is supported by a pre-loaded 4K media player. There is also 8K in the offing which is 16 times the number of pixels of full HD. It is difficult to say that this will be future TV.

    Intel Media Service

    It is a hardware and software solution expected to be powered by Intel’s fourth generation processors. The service is proposed to be launched with a device. These will be on-demand content. The service will operate via the Internet. It will have live as well as catch-up TV. It will be restricted to the US to begin with.

  • TV News and Discussions

     

    In the good old days, news was read out to the placid listeners. The news reader was calm and steady and did not show emotions. The views were one-sided affair. Sometimes, they were two speakers, but both of them either agreed or civilly agreed to disagree.

    In the 1990s, non-government news emerged. It changed the reportage which becoame more hectic. But analyses were still the same. They passed on government views. Politicians and anchors had a cosy  relationship, The wrangle too was amiable.

    Then came the era of ‘shrill’  TV news. It shattered the old day calm. There are furious arguments and accusations. There are insults and cutting responses. It is BP, scowls and tears. The programme brings in lot of emotion, which was traditionally absent. The news rushes to all corners of the story. It is understood that India today aspires to have news that empowers ordinary lives. The citizens want to know everything. We live in interconnected world, and would love to know how events abroad and here in India impact us. Old TV discussions with chatty camaraderie do not satisfy this need.  Shrill news does.

    Critics, however, feel that events are exaggerated. Some events are triggered by media coverage. However, channels just feel the emotions around them, picks up on them, and get their act together. They present an emotional nation inside a studio. Indian media has adopted loud, pushy American model rather than polished British model.

    TV news is a saga of our current lives. It reflects its joys and sorrows, its hopes and disappointments, its chaos and  order, its ugliness and beauty. It has changed from a muted, subdued version to a shrill version. The nation has changed.

  • Indian Independent Cinema

     

    Simply called ‘indie’,  it refers to any movie made an individualistic spirit. It is a movie totally driven by auteur. It is an individualist voice of the film maker and does not necessarily cater to the mass taste. It does not comply with what is commercial.

    The generic definition of an indie film points to a small budget project made and distributed by an independent source without intrusion of a big studio. However, in India distribution is a big hurdle, and happens only with the help of a big studio. In short, our indie films are made with money from independent sources or by a producer who contributes money.

    Unlike the parallel cinema in the 1970s and 1980s, which focused on social injustices and every day struggles, today’s indie films are not bound by any theme.

    In the indie world the star is not a person, but a script. They cut location costs, edit everything on paper and plan better. The project is more efficient.

    For big studios and stars, fringe films are a means to invest in new audiences of the future.Cinema made on a low budget, experimental say with camera angles, a dose of violence and irreverent language — all these are characteristics of independent cinema. It goes beyond the formula.

    Abroad, independent movies are those that are not made outside a major film studio, or production house. It gives full creative control to the director’s vision and narrative style, without studios, producers or market forces. Their content is unusual. They show a distinct style.They are marketed on a limited release basis.

  • Disruptive Broadcast Technology : Aereo

     

    Chaitanya (Chet ) Kanojia has put forward a disruptive technology which enables to pick up the broadcast signals off the air with an antenna of the size of a postage stamp. People can watch the TV programmes on lap top computers, smart phones and other portable devices. Most Americans access free-to-air TV through cable companies that pay heavy re-transmission fees to major US broadcasters. Chet’s company is called Aero. Its services costs $ 8 to $ 12 a month as it has not to pay the heavy retransmission fees to major US broadcasters. The broadcasters say their revenue loss is so vital that they will have to remove their signals from the airways if Aero is allowed to continue like this. It is also infringement of copyright. It may give a death blow to  the broadcasting  as we know it. Aero contends that it allows subscribers to do what they have been able to do since they used the rabbit-ear antenna and watch free broadcast if it caught signals over the  public airways. Aero only provides the equipment. The case is in the US supreme court and the judgment will have a bearing on cloud computing services such as Google and Apple.

    The US supreme court ruled on Wednesday, June, 25, 2014 that Aero violates the copyright laws by capturing signals mid-air with its thumb-sized antennas and delivering them to the subscribers for a fee. It is a 6—3 decision and is a massive relief to the established broadcasters. Aero argued that it is cost-effective at $ 8 as compared to $80 plus people pay for cable services. The service is the same but the technological manner Aero provides the service is different.

  • University Research

     

    We are mesmerised by the innovations in the corporate world but behind the success of these corporate laboratories is a busy underpaid university scientist. In the corporate sector, there is little room for fundamental research, and that is why most Nobel laureates are from the universities. In university set up, you are prepared for years of failure, and risks can be taken. In corporate world, if you do not deliver in time, you will be asked to take risk. It is not always the Ivy League universities which corner all the glory but many  non-Ivy League universities scattered all over. All chemistry research has been facilitated by Norman Allinger who is a guru to all those who use computer to figure out chemistry. The federally-funded National Institute of Health (NIH) of the US added to our understanding how the transport system in the cells work. This facilitates so much research in medicine. Though Steve Jobs was brilliant and audacious, yet without Alan Turing of National Physical Lab, UK and then the university of Manchester, there would neither be computer science, nor formalisation of the concept of  ‘alogorithm’. Mask Zuckerberg may have leveraged the Web, but the web was put in place by Tim Berners-Lee at CERN in 1989. CERN, Geneva is funded by 12 European countries and Berners-Lee is today a professor in the University of Southampton, UK.

    As the Indian universities are in bad shape, we do not think of pure science research in India. Though IIT, Mumbai is the best but ranks 251st in the world. Some other Asian institutes happen to be in the first 100.

  • Vijay Govindarajan’s Analysis of Indian Consumers

     

    According to Vijay Govidarajan, India can be classified into three sections:–

    Developed India: Those who live in 15 major cities with a population of 100 million.These are targeted by the companies as their consumers.

    Developing India: These people live in 6000 small towns with a population of 300 million.

    Under-developed India: This is the bottom of the pyramid.It is a population of 700 million living in 6 lac villages.

    Almost a billion people in India in developing and under-developing sections remain non-consumers. Their needs and problems are the same as those of the consumers. The question is that of affordability. If we have to tap them, we have to innovate in such a way that the innovations become affordable.

  • McDonald’s

     

    It entered the business in 1995 by setting up joint ventures with two partners-turned-franchisees Hardcastle Restaurants and Connaught Plaza Restaurants.

    McDonald’s India is growing fast and plans to expand its outlets from 275 in 2012 to 500 by 2015.

    They adopted a policy of glocalization –- bring in its expertise in supply chains and restaurant operations from abroad and combine it with local requirements and culture.

    The products and pricing for India were specially designed. They did not allow items with beef and pork. India is the first country to do so. Except fries, beverages, sandwich and the Filet-O-Fish, there is little in common between an Indian and a US outlet.

    They practise here  ‘branded affordability’.  Some items on the menu cost Rs 20. They focus on safe food and one-minute service. They focus on cost reduction.

    McDonald’s spent six years and Rs 450 crores to set up a supply chain in India well before opening its first outlet.