Amazon @ Seamless Innovation

Amazon’s Octocopter project swept many people e off their feet. It looked like future had arrived. Whether the project and idea is safe and more importantly legal in countries where Amazon would want to take this concept is a topic for a different day, but how revolutionary the idea is in terms of exceeding customer expectations in terms of delivery and service, we will take that into consideration for now. 

   

Marketing is not just about building a brand. It is also about creating a brand promise, communicating this promise to customers and most importantly, fulfilling that promise, time and over again.At a time when there is intense competition between companies to grab a share of consumer consumption, arriving at a brand promise and consistently delivering it is a critical factor for success of any brand and company.

Reliable, quick and hassle-free home-delivery is one such promise that is being made by a lot of companies these days. These companies are from sectors like e-commerce, food-chains, courier & logistics and many more.

With benchmarks for customer service and satisfaction rising due to the availability of alternatives and higher purchasing power, run of the mill ideas for marketing and customer services have started to feel the heat. Whether a company wants to grab its TG's attention or want to delight its customers through its service, innovation has become a game changer.Innovation has become a major factor to differentiate between ordinary and brilliant companies and brand.

Amazon is one such company which has always been know for its innovative approach towards its business.  The recent initiatives taken by Amazon testifies this. One is the much hyped experiment about using drones to deliver products to customers. But the other one is much local and much more viable option which many of us would not have imagined.

When a company demonstrates its futuristic delivery idea, how many of us would imagine that the same company is also roping in an organization tagged as old and slow – India Post, for the same objective- delivery! .  This is a classic example of seamless innovation. This is also something, which most of the organizations have not been able to achieve. When a company goes for all-tech futuristic innovations, it is almost impossible to have eyes open to more traditional avenues to innovate. Amazon did that.

The end objective in both the cases is same but the TG of course changes. The drone delivery would be for achieving quick delivery times and the India post collaboration is to achieve high penetration for the company in terms of customer reach. Not to forget the drone experiment was not done in India or for Indian market though, but the extent of pro-activeness and the efforts to achieve customer delight  is remarkable in the Jeff Bezos led company.

Also, one should note that Amazon's drone delivery experiment is not the first one since Dominoz has done this experiment in June this year already.

   

 But what makes Amazon special is the bandwidth of innovation it allows its employees and teams across globe to create value for their customer. This organizational culture not just enriches its employees with learning but also benefits its customers. Truly inspiring!

Cheers, 

Google Search Films - Business sense with Marketing 3.0

So what was the need for Google, already enjoying more than 95% of market share to make a series of ad films (Google search) promoting its presence and products?

When you are 95%+, it means it is just you!

The campaign is called Google search and was launched on 13^th November for netizens.  It has five films with the first film setting the tone for the other 4 films. The first film(Reunion) is 3:03 minutes long while the other ones are between 40-60 seconds each. We will stick this post to the first film which is the introduction and highest viewed film among the set of five.

With a view count of more than 6 million in less than 2 weeks and 66000+ likes, it is clear that viewers have accepted the ad and the concept whole heartedly.  Some of the comments on the film on youtube will make Google guys very proud of themselves.  The ad is going to be broadcasted on television from 25^th November. TVC space is expensive and the unique set of audience these ads will encounter on TV, will be the one which is not internet savvy, unlike the ones which have embraced the ad so strongly on net-space. Hence the question becomes even more critical. Does Google need this?

Before we answer this question, let us understand why this ad made such a furore on internet. Most have already figured out multiple emotional touch points these ads titillate, which have connected very well with the audience.

These are emotion of a generation who witnessed partition, friendship, affection, care etc.

Apart from this, Google has adopted an intelligent strategy of passive pitching in these ads. Nowhere in any of the film or voice over, the word ‘Google’  has been used. Hence, Google didn’t try to intrude the emotions and place its sales pitch into the films. Audience is intelligent and it always appreciates such gesture. A hard-sell approach would have killed the emotions!

Technically, this worked for Google since it is well-known by the viewers as a brand and hence it could afford to sit quietly as a product/service placed at multiple spots in the film but not announcing its presence. It worked better for Google because the films were released only on internet which means that it went to an audience who already knew what Google is.

Now coming to the ‘why?’

Shift towards  Marketing 3.0 –  With this campaign Google has promoted itself to Marketing 3.0 which as per Kotler is –

“...companies practicing Marketing 3.0 have bigger missions, visions, and values to contribute to the world; they aim to provide solutions to address problems in the society. Marketing 3.0 lifts the concept of marketing into the arena of human aspirations, values, and spirit”

This gives an edge and recall to the brand in audience’s mind as the brand is shown to celebrate human spirit and emotion.

The ad unlike believed however, is not a social or emotional build-up for nothing. There are subtle placements of the product/service which will make space in consumer’s consideration set without he/she being aware of it. These points are doing multiple things with multiple users –

• It is educating the unaware about the product
• It is bringing the product into consideration set for the fence-sitters
• It is making itself as the preferred choice for hopping consumers and win their loyalty

Here are these points which without being loud, registers in audience’s mind sub-consciously –

•  The first search shown in the film does not only show that Google is used for search, But it shows itself as the natural destination for search related services. It also shows Google to be the homepage which makes a lot of difference in the usage for a search engine
• Google autocomplete is shown to help the user with their searches hence pitching this small but clever innovation that adds to customer ease in internet search
• The very fact that the ad film seamlessly goes from a small mention of an old friend to them actually meeting shows the effectiveness of Google as a search engine. It basically suggests that Google search results are accurate and relevant to the search queries made
• In a very clever way, all the offerings were bundled together seamlessly in the film – Google maps, Google plus, weather app, flight information app. The one-stop shop idea was smoothly integrated with the script which educated the audience about other services

Apart from the above mentioned, there are three communication points that stand out in terms of the bigger strategy that Google might have in mind. While the above mentioned are subtle insertions to promote the product and service the next three are more important in terms of adding users who have not been to internet yet and those who are going advanced in terms of mobile technology.

The idea of the two young people being very comfortable with Google applications goes on to show the connect the brand has with youth. It shows that the youth has invariably accepted Google as their “know it all” friend. It positions the brand itself as a young brand. A trait very important for a brand to posses in a country where two-third of its population is under 35 years of age.

Another interesting aspect was the young boy in Pakistan in his sweet-shop using internet and Google applications with ease. It shows that the tech savvy tag is not exclusive to corporates and students any more. Google shows that it has breached these boundaries to go to people and have brought them in a bigger pool of “tech-aware” consumers if not tech-savvy.

The most important point is the demonstration by Google on its seamless and logical integration of mobile devices for using its applications. The share of mobile devices in internet usage has been increasing rapidly. The mobile devices account for 62.5% of internet usage now as compared to 37.5% from desktops. Google has acknowledge this fact and showed its applications being used as comfortably on tabs and smart phones as on laptops. This is a master stroke where, without going away from the concept of the film, the mobile adaptability of the product and service is communicated.

Put together, the subtle insertions of various communication points in the films is brilliant marketing. How are these ads taken by TV audience which is a different set form internet audience on many parameters, will be interesting to see.

Cheers,

  

Local brands at 'Fair' advertising - Literally fair !

India’s obsession with white skin doesn’t seem to be fading any sooner. Watching foreign models and actors dominating the beauty segment ads and promotions for products being offered to Indian consumers (who have a very different skin complexion and skin type) has always been a little perplexing to me. Perplexing not due to ‘exploitation’ of this trend by the cosmetics companies but because I wonder for how many more decades we will be coaxed by the myth- more fair is more beautiful. Nevertheless, as far as beauty products are concerned the white-skin obsession was always a legitimate excuse for empowering this trend, but do the same “rationale” works for segments outside beauty and cosmetics? Looks like it does!

It is hard to miss the wave of home-grown Indian companies in segments like automobile, apparel, consumer durable using foreign models as part of their brand communication through advertisements.

Which companies' use of foreign models and location is baffling

Before we go any further we must distinguish between the companies on the basis of whether or not they are home-grown and where do they ‘extensively’ generate their revenues from, Indian market or foreign market (where is the major consumer base?). 

We must also differentiate between the use of foreign models (not-known to the audience to whom ads are exposed) and foreign celebrities (Hollywood actors & actresses, sportsmen & sportswomen and other famous personalities).

How having a celebrity in the ad a different ballgame than
having just a 'foreign' face and exotic location instead?

There are multiple reasons for foreign MNCs with target market as India as well as Indian MNCs with target markets in foreign countries to employ foreign models and locations in their brand communication and promotion through advertisements. Also using foreign celebrities as the face of certain brands in India is also backed with some sound and logical arguments. Very briefly put, these could be -

• When an international brand creates a single ad for multiple markets and hence saves on the cost of creating multiple ads for multiple markets
• When an international brand aims at a globalized marketing strategy which has to ensure the right and exact communication spread into multiple markets across the globe
• A foreign brand specifically wanting its genesis to be exposed, portrayed and made to be talked about in the target market, thus helping its cause. Example – ‘German engineering’ for automobiles, ‘From the coffee bowl of the world’,"Premium English chocolates" etc.
• Signing one very famous celebrity helps the company to cut costs on signing multiple celebrities from target markets thus saving cost and adding credibility and brand following to the brand and the product
• Legal reasons to avoid controversies in target markets. Eg. Ads from Jockey and Triumph in India

There are many other reasons which can be looked into detail to understand how using foreign models or celebrities by international brands help them build a credible image in a market like India. 

However, what is to be seen is why are home-grown companies who mostly sell their products in India and hence have to largely communicate with Indian audience are giving more importance than ever to foreign models and locations in their ads.

Apparel segment –

Madura Textile and Raymonds are two major homegrown companies that have built their apparel brand around relevant communication and effective advertisements that are based largely around foreign models and exotic lines. Some of Madura’s famous brands are – Louis Philippe, Van Heusen, Allen Solly and Peter England etc. On the other hand, Raymond created Park Avenue, Parx and Color Plus etc. Have a look at the flyers of these brands which boasts foreign models showcasing the desi brands. Interestingly, even the locations picked are alien to the Indian consumers.

Van Heusen by Madura Garments

 Allen Solly by Madura Garments

Peter Englnd by Madura Garments

Parx by Raymonds

Mobile segment –

Some home-grown mobile phone players are Micromax, Karbonn, Lava, Spice etc

When we look at some of the recent advertisements by these companies for promoting their products and brand as a whole, it’s difficult to miss an overall exotic and foreign feel that is tried to be served to the audience watching these ads. It starts from the actors in the ads who are mostly foreign models, the locations which look exotic and even the central theme which tries hard to seal it as an exotic affair. Below are links to some video ads for these companies which are peculiar with their foreign cast and locations.

Micromax Canvas 2 

Micromax Canvas HD

Karbonn Titanium

Spice Cappuccino 

Spice Pinnacle Series 

Why this trend?

There are many arguments to justify this ever-growing trend. Indians are considered to be having a chronic hang-up with the white skin syndrome which many blame on the British colonial rule. Britishers ruled India for more than 200 years and that did something more than just nurturing servitude as an acceptable behaviour evident in our political and bureaucratic mechanism. India grew older under the sense of how the white-skin was always more smart, more successful and dominating over the dark-skin.

White is Might?

This ill-gotten belief automatically brewed some more erratic behavioural changes in Indians who started to believe that everything that has a white-skin endorser is a quality proposition. However, it might not be completely inaccurate to say that local products due to substandard production techniques and lack of consumer-focused marketing have let down Indian consumers over and over again and hence strengthened their belief about the superiority of foreign products over their national counterparts.

Hence, international brands and products promoted by foreign models became aspirational and soon consumers wanted to be associated with these products and brands, not necessarily due to functional (& technical) but emotional attributes.

How is this consumer behavior trait utilized by marketers? 

With these starting points, it has become an easy approach for local companies to add an international touch in their communication which in turn heightens the brand image in eyes of its consumers, as the product will be seen accepted and endorsed by ‘smarter’ and ‘better-looking’ brigade of foreign models. Behaviourally, a consumer starts looking himself or herself in place of the model of the ad who is shown to be the center of attraction, and is ‘coincidentally’, also white-skinned.

What does it actually do for the brand or the product?

Is the color prejudice typical with Indians only?

• Automatically induces a ‘quality product’ belief in the consumer
• Make the product look being accepted by higher evolved markets and more informed consumers hence rendering credibility to the product and brand promise
• Increases the acceptability of the brand and the product due to an international touch
• Makes the brand aspirational by strengthening brand image
• Place the brand above some other local brands helping it climb the value ladder without much real technical innovation
• Such communications add a premium-ness to the product allowing the manufacturers to command higher price which can be invested to product improvement leading to actual ascent in the segment against competitors (instead of difference in communication level only)
• Changing fence-sitters into consumers
• Reducing cognitive dissonance

The last point mentioned is important in many senses. A marketing tactic for promotion can only take the product so far. Beyond a point a product should speak for itself. Such a strategy if systematically implemented may give a higher end to the brand at the start but eventually a superior product is what is needed to take the brand further. An ordinary product will soon be recognized and the gross mismatch between the appeal created through brand promise for the product and actual product will leave no option for revival. Koutons’ debacle is an example of such a mistake though there were other major loopholes in its marketing strategy as well.

How long – Can & Will marketers use this erratic and stereotypical behaviour of Indian consumers, answer to that question lies in another question - How long the whit-skin syndrome will keep its hold on Indian consumers?

Cheers,

Indian used-car industry - Challenges and Opportunities

Used-car industry has flourished in India in past few years in an extraordinary way. This sister-industry of the new-car industry has came a long way from selling a few thousand cars every year to the current situation when it is selling cars almost one and a half times more than that of the new car industry.

Both these industries have grown leaps and bounds in the past years with the core reasons being multi-faceted. Right economic environment has enabled a large chunk to earn more, consume more and hence, spend more. Specific to the used-car segment, the growth has been contributed by the rising urban population, a large part of which is the young and ambitious workforce. A change in lifestyle in tier-II and tier-III cities have played its part too in taking the once a luxury, four-wheeler, to great stretch.

Apart from the factors from the consumer side, the industry has greatly benefited by the regulations and policy support from the government in last few years. The Industry has responded as enthusiastically as the consumers have by bringing a flood of new cars models spoiling its customers for choice.

The advent of foreign car makers not just raised the bar for the competition but also bestowed the population with cars which they had longed to own for long time. Not to mention, the technology and wealth they brought to India in terms of knowledge and assets.

However, last few months have not been great for the new-car industry. Fortunately, the same is not true about the used-car industry.While the new car market showed negative growth in the past few months, used-car market has been growing at a pace of 22% year by year. The current Indian used-cars market is pegged at around 2.5 million units a year. The Industry is said to be worth around Rs 52,000 crores. (Source: Crisil’s report on used car industry)

The used car market has always been dominated by traditional unorganized players in India. However, this changed a few years ago when Maruti True Value, Mahindra First Choice Wheels ltd etc set up their shops to sell used-cars in India.In few years organized sector has grabbed almost one-sixth of the market and the expansion plans make us believe that this is only going to rise further. Organized players have given a much needed stability to the used-industry and hence their entry is a welcome sign for the industry as well as for the customer.

Organized players have access to funds, technology, processes and man power to ensure that they are on track with their plans and hence there are more reasons to believe the crisil report which suggested that a quarter of the market will be under the organized sector in a couple of years from now.While the entry of OEMs like Maruti, Tata, Mahindra and Hyundai which have always been offering value for money products was a pleasant surprise, the debut from luxury car makers like BMW, Mercedes-Benz and Audi into this segment is really exciting. This will do many things in the market. It will start a culture where buying a used-car will no longer be looked down upon. Imagine someone buying a Mercedes which is pre-owned, it still is a Merc! The culture is very dominant in US where the ratio of old to new cars sold every year is as high as 3:1 while it is almost half in India at around 1.5:1.

Apart from the OEMs, entry of ventures like car nation and online format like cartrade, gaadi etc are also making the stage competitive making customer, the highest beneficiary.However, a lot needs to be done yet. The segment, especially in the organized format is especially nascent. This is clear from the steps car nation, which is promoted and run by Ex-Maruti MD Jagdish Khattar, has taken in the last few years. From a multi brand used-car retail outlet to service stations to financing, to accessorizing shop and what not. It is easy to recognize that there is a big gap between the services supplied by the existing players 

and consumer demand and hence after every step there is an opportunity that should be tapped.

Various challenges are there for the industry which needs to be faced in the coming years. The challenges are both, different as well as similar for the organized and unorganized format players. For example, the organized players have to break the market to take position which will make their presence worthwhile. The price point difference in an extremely price sensitive business like this is another threat to the organized used-car segment. However, credibility and trust due to the brand associated as well as the professionalism which they employ in their operations are most important strengths of these players.

On the other hand while the unorganized players mostly work in the personal relationship domain, they have challenges like diluting trust and hard-hit credibility and hence more professional and transparent approach is the way forward for this segment. However, due to tight focus on the costs these players are always able to make the price difference subtle for the customers. But going forward, this may not be the best strategy considering the changing customer lifestyle, attitudes and perceptions about used-car purchase.

Cheers,