SUSTAINABLE MARKETING STRATEGIESsbm-industry-conference.nmims.edu/presentations/...•Bajaj Chetak. SOME NEWER BRANDS TOO FACING THE HEAT •Axe •Nokia ... application of Five Forces

SUSTAINABLE MARKETING STRATEGIES

NMIMS CONFERENCE ON NAVIGATING INDIA THROUGH TURBULENT TIMES

BY

AMBI M G PARAMESWARAN

FCB ULKA ADVERTISING

“THOSE WHO CANNOT REMEMBER THE PAST ARE

CONDEMNED TO REPEAT IT”- GEORGE SANTAYANA

LET US LOOK AT THE LAST TEN YEARS AND SEE WHAT WERE

POSSIBLY THE MACRO TRENDS IN MARKETING AND ADVERTISING

SEVERAL NEW SECTORS EMERGED IN

THE SECOND WAVE OF LIBERALIZATION

TELECOM / MOBILES

AUTOMOBILES

EDUCATION

ECOMMERCE

SEVERAL CONSUMER SEGMENTS EMERGED

WOMEN CONSUMERS

TEENAGERS WITH SPENDING POWER

YOUNG COUPLES WITH KIDS

MEDIA PENETRATION

CHANGEDPRINT SURVIVED

TV BECAME TRULY MASS

DIGITAL STARTED SHOWING SIGNS OF GROWTH

CINEMA EMERGED AFTER NEAR DEATH

RADIO / FM RADIO EMERGED

LOCAL ACTIVATION GAINED TRACTION

ADVERTISING SECTOR SPAWNED NEW AGENCY

MODELSFULL SERVICE AGENCIES SPLIT UP

MEDIA AGENCIES ROSE IN POWER

DIGITAL AGENCIES EMERGED

ACTIVATION AGENCIES WERE BORN

PR AGENCIES REINVENTED THEMSELVES

THAT WAS A QUICK SNAPSHOT OF THE LAST DECADE : 2005 TO 2015

WHAT WILL THE NEXT DECADE HOLD FOR THE MARKETING AND ADVERTISING SECTOR ?

WELCOME TO THE VUCA WORLD !

• Volatile – Uncertain – Complex – Ambigous

• Faster Pace of Change in the 2000s set to accelerate further !

WHICH NEW SECTORS WILL

EMERGE ? ECOMMERCE BOOM / BUST?

HEALTHCARE / HEALTH INSURANCE

FINANCIAL SERVICES

GOVERNMENT DEPARTMENTS

RETAIL / OMNI CHANNEL

EDUCATION

WHICH NEW CONSUMER

SEGMENTS WILL EMERGE ?

AFFLUENT OLD AGED

DINKS

SINGLES

LIVE IN COUPLES

WILL A CONSUMPTION CULTURE EMERGE?

RISE OF MASSTIGE BRANDS

SPEND BEFORE YOU SAVE

MALL THE NEW TEMPLES OF INDIA

MEDIA SPECTRUM CHANGES

BETTER MEASUREMENT METRICS

BARC

NEW IRS

DIGITAL MEDIA MEASUREMENT

OUTDOOR MEDIA MEASUREMENT

NEW FORMATS OF ADVERTISING

TV ADS IN VARYING SIZES

LONG FORMAT FILMS ON DIGITAL MEDIA

IN FILM ADVERTISING / PLACEMENT

SOCIAL MEDIA ENGAGEMENTS

STAGING OF EVENTS FOR BRANDS

MOBILE / SMARTPHONES/ 3G /

4GSMARTPHONES BECOME THE DEVICE OF CHOICE

LOCATION BASED MARKETING EMERGES

APP ECONOMY MATURES

URBAN – RURAL DIVIDE VANISHES

THE NEW SEC [NCCS] CREATES A COMMON PLATFORM

ATTITUDINAL CHANGE IN PROGRESS

AS AFFLUENT, LITERACY, MEDIA SPREADS

RURAL CONSUMER BECOMES INDISTINGUISHABLE FROM THE URBAN CONSUMER

INDIAN CONSUMER WILL CONTINUE TO BE

UNIQUELY INDIAN MULTIPLE LANGUAGES

MULTIPLE RELIGIONS

MULTIPLE SOCIO-CULTURAL ISSUES CONTINUE

HOW TO BUILD BRANDS THAT ARE SUSTAINABLE IN THE LONG RUN ?

80% OF ALL NEW LAUNCHES FAIL

• Old brands that were legends are no more

• Newer brands under constant threat

• Yet, some brands show remarkable resilience

DEMISE OF LEGENDARY BRANDS

• HMT

• Ambassador

• Philips TV

• Bajaj Chetak

SOME NEWER BRANDS TOO FACING THE HEAT

• Axe

• Nokia

• Sony

• Just Dial

BUT SOME BRANDS HAVE COME BACK STRONG

• Enfield

• Old Spice

• Parachute

• Jaguar

SO WHAT DID THEY DO TO STAY RELEVANT ? • Is there a magic formula ?

• Or is it just rigorous and continuous application of Five Forces Model of Michael Porter ?

• Or a combination of many well designed processes ?

GOING BEYOND JUST THE 4PS

#1 TRACKING CONSUMERS CONSTANTLY

• Beyond just traditional market research

• Diving deeper to unearth trends

• Hidden motivations

# 2 TRACKING COMPETITION

• Not just the traditional competition

• But also those coming from left field

• And new entrants

# 3 UNDERSTANDINGSOCIETAL MEGA-TRENDS

• Socio-Cultural trends often missed out

• Changing roles of women, youth, kids

• Increasing purchase power of the old

#4 ANTICIPATING TECHNOLOGICAL CHANGES

• Not just in hi-tech industries

• Even in mundane industries like lighting and FMCG

• Impact of Design Thinking !

#5 GETTING BEHIND MEDIA DYNAMICS

• Better measurement of media effectiveness

• Market Mix Modelling

• Digital Media / Social Media Monitoring

#6 “BAKING IN” SUSTAINABILITY

• How can products and services be made more ‘sustainable’

• Triple bottom line promise

• Production Process, Packaging, Use of Water, Power and Materials

• Use of sustainable manpower policies

# 7 BUILDING TEAM COMPETENCIES

• Greater mobility of marketing talent

• Building people growth agenda

• Building more robust organizational learning systems

• Exploring innovative hiring practices

SEVEN KEY STRATEGIES FOR MARKETING SUSTAINABILITY• Tracking Consumer Changes

• Tracking Competition Moves

• Tracking Technology

• Tracking Socio-cultural Changes

• Understanding Media Dynamics

• Baking In Sustainability into Products & Services

• Building Competencies

‘Religiosity in everydayIndian life takes on awhole new dimensionwhen seen through theeyes of this ad-man! Forinsightful explanationsand marketingpossibilities of a wholehost of phenomena, getthis book’

- Rama Bijapurkar, author of We Are Like That Only

Watch : TEDx For God’s Sake Talk

SUMMING UP …

• Marketing Strategies need to be sustainable in the face of changing consumer, competition, society; Marketing, Advertising and Branding in the coming decade needs to connect with consumers in many different unique ways and thereby increase their value

• In the words of Peter Drucker …

“If brands are the ultimate consumer glue, the task an organisation has to undertake is to build brand value and strengthen the glue.”

THANK YOU