How private brands dislodged PSU brands ?

This was almost 25 years back when all of was familiar with HMT watches. They really ruled the market and even I remember in their slogan they called them as TIME KEEPER TO THE NATION.  And their advertising message said if you have the inclination we have the time.  And when they launched the quartz brand they said if we you have the inclination we have the exact time. Here they were emphasizing the exactness to the correct time a quartz watch is supposed to deliver. But in 1987 when the Tata’s came to the market with Titan they came with lot of planning and a well thought out strategy to rewrite the watch industry which they ultimately did so. And within a matter of few years they dislodged HMT and just surged ahead by bringing in variety and innovation in all their marketing efforts. Be it distribution or product innovation they did it differently to only be the undisputed king in the watch business. From a watch brand they have moved into to a whole range of brand extensions and the latest being the launch of perfumes.

By the time we entered the 90’s with liberal policies we saw several categories where private brands entered and started giving tough time to the PSU brands. Let me recollect a few categories where private brands have made deep inroads.

1.       Lubricants: This category was primarily dominated by the PSU brands due to their strong hold on distribution. As no private brands were allowed to sell their products through petrol stations. But that did not stop from private sector to push their products. Castrol was the first to aggressively market their product. Their strong communication strategy helped them gain good visibility to get into the consideration set. They used the bazaar trade for distributing their products and also cleverly opened outlets opposite petrol pumps to make easy availability of the product which gave the car owners one more choice apart from what the fuel station was stocking. They kept constantly innovating and improving their product offerings through strong R&D and became partners to many OEM automobile manufacturers. Today the private sector must be holding all combined, close to 40% market share in this market. We have several brands like Gulf, Elf and Tide water that also had their own share in this market.

2.       Insurance:  Life insurance was synonymous with LIC. In fact the lingo that was used is LIC kar leya…..Also since this PSU brand was backed by government the credibility scores were very high which helped them to gain loyalty  as against the private brand. But today desk research say’s that LIC has only 50% share and the combined private insurance brands control the balance 50%. There are at least 10 brands which are fighting to get their pie in this highly competitive market which has lot of government norms that one has to adhere to. Most of these private brands have pumped in huge marketing spends to create awareness but besides that they also bought in the use of online tool for people to buy polices which is still lagging behind with the PSU brands. With the rapid penetration of internet and a younger population that will rule the Indian market these private sectors will have an upper hand to woo this new generation?

3.       Airlines: The Indian skies were ruled by the Indian Airlines (Now Air-India). But over a period of time starting 90’s we saw the downfall of the Indian Airlines as private operators came in. There was huge shift towards private airlines and the result being that Air-India only has 20% market share according to published reports. In the airlines business service matters a lot and that’s where Air- India dipped very low to surrender their market. Besides the constant staff and pilot issues also eroded their equity over a period of time. Plus the continuous newness in the service and the competitive pricing by the private operators never allowed Air- India to regain their glory which they sat on for many years.

4.       Telecom:  BSNL and MTNL were the household name in the wired connection when it came to telephone. One had long waiting period to get a permanent connection. At one point of time having a telephone was a luxury but starting 90’s with the advent of mobile connections it very soon became a necessity. While both the PSU brands are also present in the mobile space but not sure what is their market share. Nearly 85% market share is held by the private brands. Here again  technology and aggressive marketing helped these private sector brands to hold the market with lot of ease as there is no fight or competition from the PSU brands.

While red- tapism and vested political interest has been by and large the deterrent for PSU brands to grow.  We must also keep in mind that the mindset of Indian consumers have shifted and changed in the last few years. The new breed of Indian customers seeks value in whatever they buy and hence it is important for both the PSU brands and private brands to get their value proposition right.  With internet within the reach the narrowing of buying decisions have become easier as price comparison more product information are being provided by many aggregators. Unless there is huge overhauling done by PSU the story will not change and private brands will just keep on cashing in.

This Diwali should I gift Chocolates or Mithai?

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All of us know that as Diwali is nearing there is always a debate should I gift Chocolates or Mithai at home, to my friends and my business partners. It’s been a tradition that every part of India celebrates this great festival of lights by sharing joy and happiness with sweets. But over a period of time as the new generation has entered this world there has also been a marginal deviation in the thinking when it comes to gifting and sharing sweets during diwali. This is partially because of the strategy adopted by many chocolate brands (which include homemade chocolate brands and products from the big MNC’s) who have entered this market to capture some share of the mithai market during this great festival across India. Let’s look at some key differentiators between the two.

1.    Traditional & Emotional: Diwali is a festival which has lot of history and tradition which date backs to many years.  Most of them love to preserve the values of traditions connected with sweets made and prepared at home. These traditionally prepared sweets bring in plenty of love and emotional expressions when they are exchanged with your relatives, family members and friends. While the promotional campaigns of many chocolate brands try to bring the emotions through their advertising but they are not able to capture the real essence that a mithai is able to deliver. Every ingredient that goes into a mithai has that warmth and emotional connection with the audience.

2.    Wider Choice: There is no limit when you think of preparing Mithai. Since Mithai is very meticulously prepared by hand the touch of authenticity further enhances its taste. Which is missing in chocolates though some brands try to use some special ingredients to come closer to the mithai. The good old parents and grandparents always relish the wider choice that one has when it comes to mithai. The natural ingredients have more positive impression as compared to the artificial flavors.

3.    Pricing v/s Presentation: Mithai’s are still easily affordable as the prices are not so steep. You have a larger choice to pick from. You can taste it at the sweet shop before you decide to buy your preferred Mithai.  And when you prepare it at home you can use genuine ingredient to make it healthier, tasty and less expensive. This is not true with Chocolates but when it comes to Corporate gifting due to its attractive packaging and presentation Chocolates scores over the mithai.

4.    Innovative & Delicious: One can experiment lot of innovation while preparing a Mithai and that has been the hallmark of traditional sweets. One of the most popular items that have caught over the years has been the Mithai for health conscious audience. This is prepared from quality dry fruits which are preferred over the chocolates by many diabetics as chocolates are perceived to be more rich and sweet. But chocolates have a larger shelf life compared to mithai and therefore it has an added advantage as compared to mithai when gifting to the corporate and sending it out of station through couriers, to far off friends.

Both chocolates and mithais have their merits and demerits when it comes to sharing and gifting during diwali. But with the change in the audience pattern there is a different point of view between the two. While mithai has still stuck to the core values of maintaining the traditional image but the chocolates has wooed the new generation audience with their product and packaging to explore chocolates instead of mithai every diwali and every other festive season.

4 ways to make experiential marketing work for you :

Give the consumer a new way of shopping with customer interface, strong consumer engagement, a wonderful ambiance  personal touch, feeling and experiencing the product at the point of purchase and taking back with them a memorable shopping experience. To make this work you need to plan your brand attributes carefully and ensure that the brand promise is delivered at every touch points.

 Brand Experience:  One need to structure the brand experience which will deliver the brand promise through some unique experience. For example if it’s a multiplex brand then you will have to offer push back seats that is comfortable, Dolby system to deliver tantalizing audio sound .quality beaming with great picture clarity. And of course a great ambience with great food courts.

Brand Engagement:  Use the best use of technology to make your engagement very interactive. Install technology like touch screens or kiosks to engage with the audience. If it’s a multiplex then you set up a  quick preview of the next coming moving on the touch screen for a short duration. This is what will delight a customer to stay tuned with the brand.

Brand Connect: Make sure the essence of the brand is captured through firsthand experience. For example if you are marketing Disneyland by setting up a stall in a tourism exhibition, your focus should be to capture the essence of the brand that is fun and entertainment. Highlight the memorable rides to connect with the brand to bring the potential tourists come closer to the brand. As all of us know that Disneyland is all about rides.

Brand identity: Maintain your brand identity to maintain the engagement and connection with the brand. Your theme should connect with the brand values and its identity so that there is consistency in your communication when the customer experiences the brand.

4- Big reasons why traditional Mithai scores over Chocolates during Diwali.

   Traditional & Emotional: Diwali is a festival which has lot of history and tradition which date backs to many years.  Most of them love to keep the values of traditions connected with sweets made and prepared at home. These traditionally prepared sweets bring in lots of love and emotions when they are exchanged with your relatives, family members and friends. You cannot get the same joy and emotions when sharing chocolates as the ingredients that goes into the Mithai delivers that emotional touch. Also your grandparents and parents will always and only relish the traditional Mithai as against chocolate especially during Diwali.

2.       Variety of Mithai: Sky is the limit when you think of preparing Mithai. Since Mithai is very meticulously prepared by hand the touch of authenticity further enhances its taste.  People make different variety of Mithai to make the festival very memorable and enjoyable. Different regions in the country are known for variety of special Mithai and that is available across the country in many Mithai shops during Diwali. This further helps in bonding, sharing joy and happiness during this great light festival that is celebrated nationally.

3.       Affordable to make or buy:  Mithai’s are easily affordable as the prices are not so steep. You have a larger choice to select from.  You can taste it at the sweet shop before you decide to buy your preferred Mithai.  And when you prepare it at home you can use genuine ingredient to make it healthier and tasty.

4.       Innovative & Delicious:  One can try lot of innovation while preparing a Mithai and that has been the hallmark of traditional sweets. One of the most popular things that have caught over the years has been the Mithai for diabetics. This is made of quality dry fruits which are preferred over the chocolates by many diabetics as chocolates are perceived to be more rich and sweet. Some of the Mithai’ of late have been prepared to maintain longer shelf life so that they are able to woo the chocolate consumers.

5 things that a Public Relation professional should refrain from:

a.      a.When it comes to pitching for a new business most PR executives love conducting media audits. They randomly call the journalists to get some perception or insights for the pitch. Most often these audits are done at the last minute and the journalist gets irked when he or she is contacted. One needs to understand that these audits will not give any great insights as invariably the sample size is very low.

b.      b.Don’t expect any traction out of press releases. Press release has become outdated and old fashioned. The inboxes of most journalists are always flooded with millions of releases across the country and they invariably miss their eyes as they have other priorities to attend to. Instead one need to be smart and find out is there a good angle to pitch it as a good story and get published. Set your clients expectations on press release as most clients still expect high hits on press releases in both online and print. 

c.       c.Please give the journalists his space. It has become a habit with most of them to keep calling the journalist after one sends some press note or a press release. Let us understand and respect the journalist as they have lot of other things to do and hence it is important to do your follow up in the most understanding and interesting manner by not straining one’s relationship 

d.      d.Never drop a journalists name during new business pitches. Some professional’s likes to demonstrate their media relationship strengths in the meeting by dropping the name but at times one does not realize the correctness of the name and publication and the next thing you get to know is that he or she has moved from the publication. Thus cutting a sorry figure. Also some clients quiz the agency at times, so it is better to avoid mentioning  any names  

e.     e. Avoid outsourcing for authored or placed articles. As a public relation professional the onus lies with the person handling the account to write this as he or she has deeper understanding of the brand. The outsourcing can help you in the short run but in the long run your writing and thinking skills count a lot to build your career in this profession.

Thought leaders are built over a period of time

The word thought leader has been most commonly used in the Public Relations and the communication industry at the drop of the hat. Whether it is an existing client or new prospect one of the key agenda is to get thought leader ship position for their key spokesperson. I fail to understand why people don’t think that there is step by step process to get the thought leader position and especially in the case on a new client. While one can understand that this is the ambition for every client and brand one need to be patient and demonstrate his or thoughts to reach that stature. What is more important is that you need to consistently demonstrate your ability in your field in various forms for the world and media to respect you as the thought leader in your space.

Thought leadership comes from demonstrating great knowledge and leadership:

Name any good leader ,be it in retail, technology, advertising or banking the thought leader in their respective category have not achieved  this overnight. In the case of advertising Piiyush Pandey who began his career in Account Management and then crossed the fence to pen scripts and campaigns demonstrated his true creativity with many path breaking campaigns. Starting from Chal mere Luna for the Kinetic Engineering moped brand to the dancing girl in the cricket field for Cadbury’s to the evergreen and refreshing approach on Fevicol made Piyush very popular. But his consistency in delivering quality work made him the Guru or thought leader when it came to any debate or arguments in advertising not only in India but the world over. Piyush never went to the media; it is media who came to him when became a voice of authority advertising world. That is the true hallmark of a great thought leader.

One more example that I would like to illustrate is retail. Kishore Biyani rewrote the retail story by strongly believing that consumer is the king and came out with his innovative retail solutions. All of us will vouch with out any hesitation that he is the pioneer in India’s retail story and his capacity to demonstrate has earned him the thought leader status in the retail space. We have Narayan Murthy in technology and Kiran Mazumdar Shaw in bio technology who have really demonstrated before they reached the thought leader rank. It is the ultimate goal or ambition for every entrepreneur or founder of a company to be a thought leader but great thought leaders are the one who truly demonstrate their skills and knowledge with a long term agenda and will run with the baton for a very long distance with a strong focus on the future. There are no short cuts to emerge as a thought leader.

Key Drivers for being a thought leader:

Innovation and showing results to me is the foremost factor to say that you are a thought leader. Thought leaders are the people who are always ready to take risks and face challenges. They love to think about the out of the box ideas. The innovation is one of the main characters of the thought leaders. The risk taking ability of the thought leaders is the main drawback at times; however, it is also very much true that if the risk is not taken then the higher achievement will also not come easily. A thought leader must have or must choose an idea which is much more different than the traditional approaches which are very safe. Higher the risk the thought leader takes then he will be seen as a trend setter or a visionary in his own rights. If you see most of the thought leaders who have emerged in our country they are people who demonstrated the ability to take risk and have delivered positive results in their respective field. The examples stated by me in this piece are all people who have demonstrated risk taking ability backed by strong innovation and creativity.  

Brand Activation, Social media and Public Relations will play a key role this festive season:

 Brand Managers and Marketing managers will be kind to me but not the Advertising and Media buying agencies. With the slowing down of the economy and unpredictable business climate, marketers will be cautious and will not go full hog spending monies using mass media. Also I have learnt that growth in flat panel TVs, which was rocketing along at over 25 per cent a year back, has plunged to the low single digits. The same is true in the case of air-conditioners and appliances where the sales have shrunk. Some of the brands in the refrigerator and air-conditioner space had a tough period this summer.  All these indicators will force marketers to balance their spends very judiciously before this festive season. As the festivity begins in next 6 weeks brand managers must be evaluating their advertising and media strategy with a tooth comb to ensure that they spend judiciously and get the maximum buck for every penny invested. Companies in the Consumer durables and Auto segment will be using less of mass media as the margins are tight. Instead the emphasis will be to woo dealers with good returns and spend a lot on experiential marketing where they need to keep constantly engaging with the target audience at various touch points. Even in the other segments there will be a dip in the spend levels as efforts may be diverted more towards active consumer engagement programs and promotional contests to keep the buzz alive with the audience.  So let us wade through the various communication tools that will come in action at the market place this festive season.

Mass media may be curtailed:

You cannot avoid or ignore this medium totally as you need to achieve your reach and generate some awareness. We might see marketers using mass media more for promotional offers and tactical announcements. Use of theme or brand communication may take a back seat and the focus will be more towards promotional based TVC’s. One can also expect short duration of TVC’s and smaller size of advertisement in print publications. There are no big ticket sporting events apart from the Olympics for marketers to buy television spots. This will also lead to little reluctance to restrict the use of Television as a medium by brands. Advertising agencies and creative shops will have a tougher challenge of creating interesting creative and impactful communication as marketers will tightly control their media exposure to get great visibility from the various piece of communication that they generate.

 Brand Activation will be used at the right touch points:

The normal yardstick one uses to catch the audience is to be present on high reach program or prime time program when it comes to mass media. Similarly one will have to strategize and identify strong touch points to engage the audience face to face. Again your brand activation will have to be based on strong ideas which will be sticky and entice the audience and at the same time fall under the brand values of the product and its architecture. This year I expect lot of brands tying up with Pooja and Ganesh Mandals in the East and West and engage with the worshippers in the most intriguing and interesting manner. I can visualize ideas such as miniature Ganesh idol of Lal baug Ganesh being marketed as a memento with some brand connect there. Similarly one can look at some ice-cream making session in shopping malls in conjunction with a refrigerator brand. Auto brands may tie up with driving school to give free learning and training session for first time car buyers who needs driving lessons.  More such similar activation is what will drive marketers to achieve their targets and keep their margins intact.

Social Media and Public Relations will play a key role:

Apart from running promotions and contest to engage with the customers on social media we can expect new thoughts and fresh ideas to happen. Budgets will be directed to give consumers better in-store experience through strong merchandising, creative product display and live demonstration. Digital media will also play a very active role in the consumer decision as they will help the consumer explore and evaluate which product is better. This can be in the form of DEMOMERCIALS where a longer version of the product demos produced on low budget explaining the product in detail. This can be telecasted on You tube with the relevant link. Such detailed demo can help the customer to narrow the decision before he finally goes to the dealer outlet and take closer look to test the product. Public relations will also play an active support to address the traditional media. Here again the focus will be more in class II town and downwards to sustain the momentum during the festive period. If marketers are able to bring in innovative products with great features public relations can help them leverage good visibility and mileage for the brand. And for some reasons if there are no great features are benefit for the product to offer then you will have to rope in brand ambassadors to attract media and get good photo opportunity for the brand.