Thursday, July 19, 2007

Dress ed to Kill


He is 25 years old. He dropped out of Princeton University and now he is turning “worm-poop” into green bucks! Tom Szaky and his friend Jon Beyer started a company called TerraCycle Inc. The company uses worm waste to create plant food and the best part is it sells it in recycled soda bottles. Most of these plastic bottles are collected through a nation-wide recycling programme organised by the company itself. It’s got schools and churches to collect empty plastic bottles and milk cartons, which are used to package its products. They now even have neck-tags on these recycled bottles where you can put your first name and the state from where you collected your bottle. It’s this idea of such an innovative packaging that generated copious publicity for this company that it has hardly spent on advertising. It even showed what the company believed in and stood for. Body Shop had done a similar thing years ago. They encouraged customers to bring their old packaging back into the shop to be refilled and re-used or recycled. They did it at a time when no one else was doing it – and it spread a good word about the company, which is more powerful than any advertisement.

Packaging is the first tangible interaction a consumer has with your brand. If it’s powerful and creates an impact, then it’s the best way to differentiate your product from competition and even beat it. No wonder Coors Brewing Co. is relying on packaging to help boost its sales. The have introduced “Cold Wrap” bottles. A wraparound label on the beer bottle keeps the brew cold longer by reflecting heat from the consumer’s hand. Not just this, they even have an agreement with the packers, whereby, the Cold Wrap bottle will remain exclusive to Coors for “at least one year”. What a way to beat the heat and the competition!

New and innovative packaging always helps to create a buzz. Last year, Pepsi Co’s soft drink 7UP decided to get the excitement going high by introducing its drink in a new packaging and using Mallika Sherawat’s curves to up the enticement quotient. It suddenly made the brand both hot and cool. Coca-Cola too had to change the shape of its soft drink Limca if it wanted to remain in the race. This year it made its bottle curvier and called it the Limca splash bottle. They said, it gave consumers a better grip. It might even help Coca-Cola to retain its grip over the market!

It’s a new world

Today it’s a whole new generation that we are marketing our products to. This “millennium generation” or “generation why” is very different. Generation Y, according to Crispin Reed of Sterling Brands, is “...arguably the most savvy generation ever to walk the planet. It’s never felt the chill of the Cold War, never knew life without AIDS, learnt about the birds and bees from President Clinton, never went to library, wore designer kids’ clothes & can’t imagine a life without DVDs, AIMs, Internet & SUVs.” If you have to attract their attention, you need to make the right moves. Amul re-designed its packaging of ice-creams, cheese and shrikhand. NestlĂ© has changed its “Fruit n Dahi” to “Milkmaid Fruit Yoghurt” and packed it in a cup.

Great packaging changes a brand’s image instantly. No wonder, companies are spending more and more on packaging, year after year. The packaging industry itself is growing at an annual rate of 4-6%. The range of products being packaged is growing and getting more and more diverse. After all, everything is getting packed and ready-to-eat-off-the-racks.

Intelligent packaging has made life easier. Think of life without resealable bhujiya packets, wet wipes, travel kits of the various cosmetic brands, juices in tetra packs, Coke cans, salt & pepper dispensers of Catch and many more.

On the shelf...

There are so many developments in packaging which are now helping in increasing the shelf-life of the products. Processes like vacuum packaging or gas packaging are being used extensively. The shelf is also the place where your brand competes directly with the rival’s brand. Marketers are using packaging to make a statement on the shelf. Some years back Coca-Cola unveiled a 30-litre plastic bottle of Coke. It was 4 feet tall, weighed 274 pounds and required, on an average, three men to lift it! The logic? They said Americans like big things – big car, big stereo, big TV. So why not a big Coke! They did try to make the brand look larger-than-life!

Windows Vista and 2007 Office systems not only redesigned the software package, but also the outer packaging to make it look more attractive on the shelf – displays; apart from protecting the software inside for life-long use.

DVDs and CDs have seen so much of experimenting when it comes to packaging. Limited editions and collector’s editions are just ways of innovatively packaging the old discs to make them look attractive and encourage impulse buying.

Thanks to the “Wal-Mart culture” of retail chains and department stores, most of the purchases nowadays are impulse-driven and many-a-times it is attractive packaging that makes you reach out for the product. Not just this, packaging also increases the brand recall. So it’s imperative your product look good on the shelves.

Save our planet

With the effect of global warming already being felt, consumers are becoming more conscious and making more ecologically friendly choices. Wal-mart has even announced a rollout of a “green” rating system of the packaging used by its suppliers – in a bid to become more environment-friendly. All suppliers would be required to lower the amount of packaging that they use, by 5% and use more eco-friendly & recyclable products. Those who don’t, might lose their business with Wal-Mart!

In today’s world, packaging even makes a statement about your commitment to the planet. Today it is no more packaging... it’s the era of green packaging.

Starbucks invented the disposable coffee cups and has shown that it is environmentally responsible too. Today, it is changing that and trying to rework a system, whereby, it would encourage consumers to drink inside the stores. America started the “take-away” culture and gave birth to a whole new style of packaging, while Europe still believes in the “consumer-in-store” culture. Consumers are demanding that companies show their responsibility towards the environment. No wonder Starbucks now serves in non-disposable re-usable containers.

So packaging is a powerful medium. It’s a statement! It gives a brand its identity. Use it with caution and you could reap rich dividends. If you have to win, make sure your products are dressed to kill.

Thursday, July 5, 2007

Think Pink (Marketing to Women)


Men may be from Mars, but smart marketers now know that it is the species from Venus that calls the shots in purchase decisions...

The year was 1929. The man was called Edward L. Bernay, considered by many as the father of public relations. The Easter parade was about to be staged on Fifth Avenue. This was also the era when women did not smoke much in public. Before the parade, Bernay alerted the newspaper that women would be smoking in public to promote ‘equality of sexes”. Suddenly, everyone was excited & wanted to cover the event. What Bernay told no one was the simple fact that he had been paid for this effort by American Tobacco, the maker of Lucky Strike in their effort to encourage women to smoke. It was one of the most famous marketing moments of its time.

Recently Dell’s marketing representatives met Oprah and showcased their products on her show. Its Pocket DJ and 30 inch LCD TV featured on Oprah’s Favourite Things 2004 shopping list. About 70% of Dell’s plasma sets were sold in weeks after the list appeared on Oprah’s show. Twenty years ago, probably women were just considered as “add-ons” by marketers, with no major decision making roles. A recent survey in America revealed that women now account for $55 billion of $96 billion consumer electronic market (in 2003). With more and more women joining the workforce their purchasing power and decision making power both are increasing. What’s interesting is 25% of these women make more money than their husbands or boyfriends. So marketers are now being forced to give them a long hard second look and formulate plans and strategies to rapture this fast growing market.

Pretty in Pink

Women today are buying more electronic gizmos than men. What were earlier referred to as “boy’s toys” are no more the sole domain of men. Companies are going back to their design tables; reworking and revamping their products as they get to know the female consumers better. Gone are the days when Gillette wanted to target their razors to women, they just colored them pink. Today, that’s not enough. A woman knows what she wants and if you want the green bucks to keep coming, you gotta give her what she wants. No wonder Camel cigarettes are now available in packages of hot pink fuchsia and minty green. They know their customers would “walk a mile for a Camel” (the famous tag line of Camel cigarettes). They also know many of them would be wearing stilettos!

Women are different & the one who recognizes that faster, benefits the most. As someone said, “When women are depressed they eat or go shopping. Men invade a country. It’s a whole different way of thinking.”

When the Lancer group of Canada wanted to market their luxury condominiums, they included things like a walk in closet, a laundry room, plenty of counter space in the bathroom for make up. What they didn’t include was a giant wide screen television. Their target was single women aged 21-45 years who were bothered about various other details of the house and definitely did not value a giant TV screen. Today marketers are getting into the skin of a women to understand what she actually wants and desires. One of them did what no one had done before. Kevin Burke, father of lucid marketing which specialises in marketing to moms actually wore a thirty three lbs pregnancy suit for nine months just to understand how a woman felt the experience. He sure was very serious about marketing to women! Tetley, Canada, has a created a special online site “Music Lounge” where women can download free songs for their digital music players and computers – basically they get to chill out the ‘Chai’ (Tea).

Diamonds no longer a women’s best friend

With more and more women on the streets, driving their own cars, the hottest selling gadgets seems to be the GPS tracking system. Most of these navigation devices are being bought by women. About 55% of GPS customers are women. Not just this, even car manufacturers are seeing a rise in the women customers. Hyundai Motors India Ltd has announced special loan schemes to lure the women. ‘Santro’ and ‘Getz’ are being portrayed as women friendly cars.

Harley Davidson, long a symbol of male pride launched a web site dedicated to women motorcyclists. They figured out that 10% of all the Harleys sold in 2003 were bought by women, as compared to just 2% in 1985. Back in India too, the two wheeler marketing segment is seeing a lot of action. Hero Honda has launched its ungeared scooter targeting the young women. Not just this, they have even launched a retail initiative called “Just for Her”. These women- only showrooms would be used to distribute its scooter “Pleasure”.

TVS has come out with accessories specially designed for the female rider and even an exclusive website Scootygals.com to sell this new accessory range. For bike manufacturers, the real growth lies in targeting the female users. The customer is the Queen for them! Women are a rapidly growing consumer force. If you are not including them in your marketing plan, you are putting your business at a disadvantage. When Home Depot (one of the largest retail chains of US) realised that most of the people who purchased a home in 2003 were women, they immediately included them in their business plans. Home Depot now regularly organizes classes targeted to women where they learn to use power tools, lay laminate floors and paint their own houses!

Ipod decided it was time to time to introduce iboxes for women too! Bharti Cellular has now a “Ladies Special Plan” which allows them to receive special beauty and lifestyle tips & also gives them special discounts on subscriptions of magazines like Cosmopolitan and Good Housekeeping, among others.

The new single woman

Today many women are choosing to stay single and are loving their independence, both emotional & financial. Marketers everywhere are doing whatever they can to attract this segment. New products & services are springing up to cater to this solo-lifestyle, like ready-made foods, investment services etc.

UTI has launched a Mahila Unit Scheme exclusively for women investors above 18 years of age. Indian Bank has introduced a loan scheme called “Swarna Abharna” to help women buy gold ornaments. Women live longer than men & insurance companies are leveraging it. They are coming out with policies to target this new independent woman. Working women need a smart wardrobe. They no longer want to wear pants designed for men. So brands like Allen Solly, Wills Lifestyle etc. have come out with a range of clothes to suit the tastes of this woman.

TV channels too have realised that it’s the woman who controls the remote. So she is the target for most of their programming. Women are from Venus About 80% of all household purchases are done by women. She is the “family’s purchasing officer”; she is shaping up the new retail trends. Thanks to their expanding purse-strings, they are changing trends. Women spend differently from men. They spend more on “home-improvement” goods and luxury, designer goods. Today’s woman is ready to spend more on a product if it makes her life more convenient. She doesn’t mind spending on a Jacuzzi for those few moments when she can actually relax. She doesn’t mind paying a premium price for an oven if it cooks meals faster & gives her more time with her family.

Thursday, June 21, 2007

IMAGINATION RULES


They come up on you slowly yet stealthily; but they mark you forever. The new age marketer knows a thing or two about the laws of the jungle...


One day in Manhattan, New York, 16,000 butterfly stickers appeared overnight across the city, forming a trail leading from Times Square to Central Park where a promotional event launching internet software package MSN 8 was taking place. This resulted in a major public outcry against the campaign, as it is illegal to advertise this way in New York. Microsoft immediately apologised to New York and agreed to remove the butterfly stickers. But it was worth the effort, for the campaign generated more that 168 news articles around the world! Not just the people on the streets of Manhattan, but world over, millions came to know about the new software package that was being launched by Microsoft.

Yahoo Personals Billboard Dating campaign put a woman on a Los Angeles billboard for three days. The woman spent three days atop the billboard, using a wireless internet connection and “Yahoo billboard Personals” to search for and schedule her dates. The campaign got so much of media coverage and free PR that it helped increase the number of visitors to the website. More than 6.4 million new visitors logged into the website. The company sure knew how to take dating to new heights.

In Australia, Vodafone painted their logo across the back of a person. At an appointed time, the man ran into a cricket pitch, where the game was on. Police ran behind the shirtless Vodafone man, so did all the cameras (which were telecasting the game across the world) and the eyes of the spectators. Vodafone had made sure that its logo was aired live around the world and all it cost them was $250 – the fine money that the police slapped on the streaker who ran into the pitch!

Welcome to the world of ‘guerilla marketing’. All the above mentioned instances are examples of this form of marketing. It could be defined very broadly as an unconventional way of performing promotional activities. And as consumers are increasingly avoiding or ignoring traditional advertisements, considering the increasing clutter, ‘guerilla marketing’ is the way to go. All it requires is, lots of imagination, for it is ridiculously inexpensive!

There are anti-ad filters as TiVo and mainstream advertisers are finding it difficult to reach the target audiences efficiently. To succeed in business you need to understand marketing. It’s said that most businesses fail because they don’t understand marketing. However, even when you do marketing, it is not easy to reach the target audience. ‘Guerilla marketing’ helps to breakthrough this clutter. That’s because just like guerrilla warfare, it catches the customers by surprise – thus making them remember the message (you can even call it a marketing ‘stunt’ if you deem fit) for a longer duration. In fact, ‘guerrilla marketers’ are even called ‘Buzz Agents’, precisely for the buzz they manage to create amidst consumers. They get people talking about the company and the brand.

When the Minnesota state officials wanted to boost tourism to a local resort town, they put a couple of canoes on some of the busiest streets of Chicago. The canoes had people wearing life vests and flannels as they pretended to fish and even row down the streets! Even a staid, jaded onlooker would have balked first and then smirked at the sight, and remembered it. Surely a novel way of fishing for more customers. The best part about ‘guerrilla marketing’ is that it delivers results quickly. And even if a plot backfires (as in the case of Microsoft) the company loses nothing, as every marketer knows there is no such thing as ‘bad publicity’, what matters is to get people talking about your ‘stunt’.

Hit it where it hurts

All that an effective ‘guerrilla marketing’ campaign requires is time, energy and imagination – not big budgets. So it works wonderfully for small businesses that work under financial constraints. This way they can challenge big competitors too. That’s exactly what Big Bazaar has done. It took on biggies like Shopper’s Stop, Lifestyle and Westside with cheeky one-liner hoardings that did catch a lot of attention and got the buzz going. “Keep West – aSide. Make a smart choice!” Shoppers! Stop, Make a smart choice!” “Change your Lifestyle. Make a smart choice”. These lines did stir-up competitors and gave shoppers something to smile...

Pepsi was still struggling for acceptance when Coke was riding high on the waves of success. Its biggest strength was its six and half ounce bottle. They used it in every ad and even trademarked it. Pepsi came out with a 12-ounce bottle for the same price. It had hit the bull’s eye. Youngsters immediately switched to Pepsi. It was the perfect guerrilla attack. That year Coke spent $15 million in advertising, while Pepsi rejoiced, for it spent just $600,000. An intelligent ‘guerrilla marketer’ finds a weakness in competitor’s strength and attacks!

Appear where no one expects you to!

A number of empty prams suddenly appeared on streets of Stockholm. As people passed them, they could hear a baby crying. When they leaned over to look at the baby, they saw some information written inside the pram which was, “Everyday 136,986 children are born who do not exist.” It was an effort by UNICEF to raise awareness about how infants, particularly in small remote villages are not registered at birth – which make them officially non-existent and hence easy victims of child abuse. The campaign lasted for 3 days, but UNICEF was able to collect some 2,000 donors who were ready to support the campaign.

After the Jet-Air Sahara deal, Jet Airways came out with a hoarding that highlighted their changed uniforms, logo, et al. The headline read “We’ve changed”. Within 36 hours, Kingfisher came up with bigger hoarding next to it, with a cheeky headline “We made them change.” The element of surprise works wonders for all successful ‘guerilla marketing’ campaigns. They are highly creative and deliver almost instantaneous results.

Have fun

Think creative, think out of the box… sure, but a dash of humour always increases the effectiveness of campaigns. When Spiderman 2 was about to released in India, Contract ad agency created a campaign that shocked and amused male cinegoers. They saw a urinal placed high up, near the ceiling - one that only Spiderman could use! Next to it was a small poster that read “Coming soon Spiderman 2.” A security glass company wanted to demonstrate the strength of its shatter-resistant coating. They treated a bus shelter’s Adshel with the coating and filled it up with bank notes worth three million dollars (apparently). Almost every passerby ended up either kicking or punching the glass. Some even returned with their families. The company had spent hardly $6,000 Canadian dollars, yet countless magazines and newspapers around the world covered this story.

‘Guerrilla marketing’ is fast developing into a new tool for marketers to get quick and effective results, besides being a unique way of reaching out to customers. For success in the contemporary marketplace, you don’t need to match budgets with the big players, instead you need to match wits. So if you are creative, innovative and ready for risks; and if you are looking for instant results, this is the place for you. Here there are no rules – the only thing that rules is – your imagination.

Thursday, June 7, 2007

THE LAST LEAR


The verdict is clear, the Big B can sublimate even King Lear, as millions of fans will now hear...

A fabulous mythical bird, almost as large as an eagle with brilliant scarlet and gold plumage and a melodious cry – that’s the phoenix. It’s said, the phoenix used to appear at dawn every morning to sing a song so enchanting that even the sun god Apollo would stop to listen. And if mythology is to be believed then only one phoenix exists at one time. As the end of its life approaches it builds a pyre nest and sets it on fire – from the ashes of which rises a new phoenix. The bird is immortal. It’s similar to this man whom even mighty failures could not deter...

He made his debut in a movie in 1969, which failed miserably at the box office – and so did his next ten films! Any other actor would have been considered history with such a performance… but the man miraculously rose from the ashes in the avtaar of Indian cinema’s “angry young man”. Any movie he starred in, drove audiences crazy. The launch of his organisation ABCL spelled doom for him once more. The Bachchan magic that worked wonders on the big screen failed to work in the boardroom. An injury on the sets of Coolie in 1982 had brought the nation and Indians across the world to a halt as they prayed for his speedy recovery... the same man was now at risk of losing his house, as creditors lined up. He owed debts worth a staggering Rs.90 crores. The phoenix rose again as Bachchan agreed to host the TV show Kaun Banega Crorepati and became the most expensive endorser on television. Today, if Amitabh Bachchan as much as sneezes – it sends a chill down the spine of the whole industry – for he is the industry!

Loved & revered

The resounding success of KBC did make Amitabh the most expensive endorser – but he is also the most loved. He is the most saleable face of India – also the most dependable. Most importantly, he’s the most respected and believable celebrity that India has – the common man has blind faith in him. It is this hypnotic effect of the Big B that is drawing brands to him in droves. This 60+ man has all the top brands lined up for him, while some of the much younger celebrities are left high and dry. Bachchan’s high appeal cuts across gender, age and socio-economic groups. According to some studies, his effectiveness as a celebrity is nearly three and a half times more than the second most recalled celebrity Sachin Tendulkar.

The Midas touch

In the first two-and-a-half decades of his acting career of more than 100 films, he never endorsed any product. However, when he did do his first commercial in the 90s, it was for BPL washing machines. “BPL – Believe in the Best” was an interesting commercial and Amitabh charged a fee of Rs.8 crores – the highest anyone had ever been paid in Indian corporate branding scenario. The ad was so effective that it really worried BPL’s competitor IFB, who even went to the extent of finding out which washing machine he had. As luck would have it he had an IFB! So they came out with a cheeky ad that said, “Amitabh believes in the best. That is why he uses an IFB washing machine”. The ad created a storm and had to be pulled off – but the company had made its point.

Reid and Taylor too had a dream launch in India. Their strategy was flawless. They launched just before the World Cup in 1999, and roped in none other than 007 Bond to endorse their product. The market for luxury suiting was not yet developed and this seemed to be the right way to give popular brands like Raymond a run for their money. However, this side of the world there is only one Bond – Amitabh, and only when Amitabh featured in their ads did consumers respond. Customers walked into stores and asked for “Amitabh wali suiting.” Suddenly the brand saw its popularity growing in India. It did pay to “Bond” with the best.

He has a magic which cannot be denied. His unblemished personality makes him a real safe bet for advertisers. Nerolac improved its brand image by associating with him. “Yeh rang har kisi ko chhoota hai” helped Nerolac bridge the gap between itself and market leader Asian Paints. Dabur Chyawanprash, though a market leader, also needed the charisma and energy of Amitabh to continue keeping the brand relevant to consumers.

If advertising is about persuasion, then the guru of persuasion is Bachchan, and no one understands it better than Cadbury. In 2004, when the worm controversy hit Cadbury, the company’s reputation was in the pits. It did a lot to convince people about its high quality and safety standards, but nothing seemed to work. It took a Bachchan to salvage the company. His magic worked yet again and people forgot all about the worms – after all “Amitabh ji kuch khaas hai.” Marketers at Pepsi must’ve been wishing for his magical presence to bale them out of the recent pesticide controversy. Actually, KBC really started Amitabh on his second innings. After KBC, people started viewing Amitabh as a very genuine person – a fatherly figure. They started believing every word he said. The man did not betray his fans either. When Eveready approached him with a proposal to endorse their torchlight Jeevan Saathi, Amitabh refused the offer since the storyboard portrayed the product as a dowry item.

When a little boy innocently asked him why he endorsed Pepsi when it was full of pesticides – Amitabh did not renew his contract with them. Instead, he lent his persona to help the ‘Pulse Polio Programme’, to save lives of millions of children. Rural or urban, if Amitabh says it’s important, then the message must be serious, right?

The man has a conscience. Says he will not endorse tobacco, alcohol and gutkha. The star is hugely expensive (his fees are to the tune of Rs.5 crores to Rs.12 crores), but hugely effective. Not that he’s invincible, mind you. There have been cases where his magic has failed – the Maruti Versa flopped inspite of both Big B and Abhishek Bachchan. His ad for Uttar Pradesh hasn’t gone down well with the masses either. But then, as someone said: “It is the prerogative of great men only to have great defects.” We must overlook these instances.

King Lear is regarded as one of William Shakespeare’s greatest tragedies. The character of King Lear is most strenuous and demanding and very difficult to perform on stage. The part has been played by many great actors the world over. However, only one in India can play the part to perfection – Amitabh. He is iconic. From Sholay to Sarkar, from suit lengths to sweets – the man can sell it all. If you want your product to be, noticed, your brand to be remembered. If you want to break the clutter, if you want to beat competition - you know whom to turn to – Amitabh Bachchan, for he is India’s Last Lear!

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