Thursday, June 22, 2006

Honey! I shrunk the consumers


“Our families rejoice – a new life’s begun. Our circle is richer with the birth of this one!” A happy couple sent out this card when their precious bundle of joy arrived in this world. Little did they realize that along with them, LG, McDonald’s, Whirlpool, Surf Excel rejoiced too. A consumer was born!

Yes its true; today, the age of the target segment seems to be shrinking. Advertisers are realizing the urgency of targeting children while they are still in their diapers; lest some competitor should snatch them away. Advertisers are making their pitches to younger & younger audiences. Today, the age of the target audience has dropped down to two years. No wonder, recent studies have shown that children as young as 36 months can recognize an average of 100 brand logos. According to the Center for a New American Dream, babies as young as six months of age can form mental images of corporate logos and mascots. So, by the time they are 2 years old, they could very well become your loyal consumers. They are, after all, your future breadwinners, and hence worth investing on today. Going by numbers: from $100 million in 1990, today the spending on advertising to children has increased to more than $2 billion. An early bird catches the worm – and marketers are starting as early as possible.

“No means no...” But actually not for long; and every child knows that. They have to just keep on asking till parents give in and buy them what they so desperately want. This “keep asking strategy” is reaping rich dividends not just for children, but for marketers too. They have, in fact, quantified it too. On an average, kids have to ask nine times till their parents give in. That’s for the ones who are 12-17 year old. The younger ones are even more persistent. They don’t hesitate to ask for the same thing more than fifty times. It takes enormous will power to refuse fifty times... and parents do give in. Marketers apparently had never underestimated the ‘power’ of a whining child; and those who have used this ‘power’ have raked in the moolah too. So all you do is keep the ads coming, and wait for the child to change the “No” to “Yes”.

just for kids

“I love you Rasna,” cooed a cute moppet, and soon every child wanted to drink Rasna. But that was a long time ago when things were simpler and little kids played with little cute toys. Today, it’s the era of ‘Beyblades’. Anyone with a child in the age group of 4 to 14 years knows what I am talking about. Rasna has done it again. It has once again managed to hook its target audience. It has started India’s first Beyblade Championship. As the little ones imitate their favourite Beyblade characters (“Tyson” and “Ray”) and many more, the company is all set to count the money. As the Beyblades start spinning, so do fortunes, and Rasna and the kids shout in unison, “Three, two, one, ho ja shuru!!!” Even ICICI is not far behind Rasna. It started the “Young Stars” account. No marks for guessing their brand ambassadors – Tom & Jerry. They captured the hearts of generations of youngsters & today are capturing their wallets!

The charm of a child is irresistible and no one knows it better than a mother and a marketer... and of course, McDonald’s! From the ambience of their outlet, to their concept of “Happy Meals,” this intelligent firm has made sure that kids drag their parents to McDonald’s outlets every time they want to eat out. The 2 billion dollars that McDonald’s shells out every year sure seems to be effective. So the Indian version of McDonald’s – Nirula’s – is trying to catch up by offering free ice-creams to students who have excelled in their examinations. Novartis decided to go a step further with its best seller Calcium Sandoz. It went directly to schools in Ahmedabad and distributed Calcium Sandoz in doggy packs along with doggie eraser, scale and pencil. After all, it pays to catch them young.

We are the world; We are the children...

The future of mother earth rests on the tiny shoulders of young children. So does the onus of building market shares in today’s business era. Today, competitors are using these tiny people to fight it out with their competitors in the market place. Who would have thought that purchase decisions on products like cars, washing machines and washing powders would be decided by children! But that’s a fact. Today, children decide almost everything, and parents are too stressed and short of time to hold their ground. Today, children are more aware about products and brands available, than even their parents.

Today, those are kids who decide whether they want a stylish car, or a big car, or a fuel efficient one. So while Maruti Suzuki shows an irate father shouting, “Oye Chhote bas kar yaar,” to stop his child from driving his toy car all over the place, the smart Chhote chirps back, “Papa ki karan, petrol khatam hi nahin honda!” The father slaps his forehead in awe and appreciates the lad and calls him a champion. Hyundai Santro knows that the little girl who gives away all her piggy bank saving for a “maroon car” will have her way. So, while the whole house wishes for the black, it’s got to be the maroon which the loving “Chachu” Shah Rukh gets for his loving niece. “Hoga Har Sapna Sakaar” promises a Santro to all the little decision makers.

If that were not enough, it’s not just the colours, but the size of the car which is decided by these lilliputs. So, when the school girl says that Maruti Esteem is a big car, her father feels he’s done well in life and smiles. Not to be outsmarted,

Indica advocates, “If you can’t have it, snatch it.” So the little sweetheart runs away with the bigger car of another boy. After all, it’s only human to want more, and Indica gives more. Be it mileage or comfort or color or style, kids know it all. Marketers are waking up to this fact. So, Surf Excel did not hesitate to give up the hard working, thrifty Lalitaji in favour of the charming brother who fights with the puddle that made his sister cry. Sachin and Shah Rukh were unable to pull it off alone, and Britannia and Sunfeast have to use the charms of two little naughty boys to convince the kids to buy their biscuits. If you have to win a trophy, eat a Sunfeast biscuit. If you want to be naughty, you need the energy of Britannia Tiger. And if you have to outsmart the adults, have a Parle-G. It’s no more just star power, but kid power, which makes ads work today.

While for all these years Horlicks used to talk to mothers about nutritious value of their products, now its “Aipong, Opang, Jhapang” for the smart child who needs no one to convince him what’s good for him. The mother just stands and appreciates the choice her child makes. All these years Colgate had been the market leader with its famous “Ring of Confidence,” which kept the family and the company’s market share safe. When competitor Pepsodent came in, it talked directly to the child and promised him that his mother would allow him all the things which were not good for his teeth, because Pepsodent would fight away all the germs. It was not just the germs, but also now “Dhishum-Dhishum” for Colgate’s market share and it learnt its lesson well. It tried hurriedly to scramble back with the help of a tiny kid’s voice that said “Mera Colgate. Meri big Suraksha.” Kids are a force to reckon with – you can’t ignore them. It’s a fact that kids influence 43% of the brand purchase decisions. Advertisers are pulling out all steps to keep kids surrounded by advertisements. India’s top advertising spenders are those whose products are consumed predominantly by children. Nestle tops the charts, followed by Britannia and Cadbury.

The New Movie-Goers


Back in 1977, little boys carried “Howdy Doody” lunch boxes to school, after watching “Star Wars.” No one could imagine back then the amount this industry would grow. We all know that the five “Star Wars” films grossed nearly $5.7 billion in box office sales worldwide. However, what skipped the attention of many was another stunning number. Toys and merchandise sales of the movie were a staggering 9 billion dollars. Add to this another $4.3 billion towards video games and DVD sales. Every hit movie spawns a whole new set of toys for children. Toy Story almost spawned a mini industry in Buzz Lightyear merchandise. Months before a Harry Potter film hits the theatres, the sale of its merchandise goes to dizzying heights. Harry Potter is so much of a craze that Bajaj Discover has used a look-alike to promote the sale of its bikes in India.

On the Indian turf too, “Koi Mil Gaya” captured the imagination of thousands of young children as they flocked to the movie hall with their parents and later bought “Jadoo” merchandise. Kids are so important today that movie makers are writing scripts and action directors are directing action scenes so that they can be converted into video games for children. It said that action sequences of Star Wars were tailor-made for video games. Be it Charlie Chaplin, Mickey Mouse, or Laurel & Hardy, all the movies which entertain kids were always very popular. However, George Lucas with his Star Wars showed the world how to build a fortune too! No wonder, instead of a pay rise, he was happy when 20th Century Fox gave him the merchandising and sequel rights of all the Star Wars films!

Hi-tech Boom

No time for parents to buy you a pet? Don’t worry children, all you need to do is log on to neopets.com, and own a virtual pet, all yours to love and to take care of in just a few seconds. This website is loaded with games full of opportunities for brands to tout their logos & ads. Today, this site has around 11 million users. Children prefer it to watching TV. The Neopia food shops sell Nestle sweets, Oreo Cookies et al to name a few. The Disney Theater link on this site shows cereal ads of General Mills. So, as children take care of their pets, they get familiar with various brands without even realizing it.

Postopia.com is another of those gaming sites where brands have linked their names to games so that children don’t forget them. We don’t need no education

Kids are glued to their TV sets. Most have one in their bedrooms. An average child sees 20,000 commercials every year. They are exposed to so much, so soon, that by 3 years, many are demanding products with specific brand names. It’s no surprise that children know more about Ronald McDonald than about their local heroes. Just when you thought you could turn off the TV and switch away your problems, you have Channel One. It offers a 12-minute news broadcast daily to more than seven million teens across American schools. Advertisers are ready to give their right arm to be a part of the commercial break that comes with this 12 minute news broadcast! Channel One does not hesitate to charge $195,000 for a 30 second ad. Where else would you get such a large captive audience!

Marketers are running helter-skelter to find ways to tap this burgeoning market. Kids surely are the new consumers. According to an estimate, 24% of the US population are kids, and the figure is estimated to remain stable till 2020. Clearly, marketers are finding newer ways to reach out to this huge market and communicate to them. So put on your Harry Potter glasses and start thinking-small, for honey, we just shrunk the consumers!

Thursday, June 8, 2006

"BEND IT LIKE BECKHAM"


It’s being touted as the most lucrative sporting events of all times. If the favourite teams reach the finals, then the final match alone would attract as many as 300 million viewers!

That’s a very large number that we are talking about and its driving marketers into a wild frenzy. Corporates are bending backward to grab a piece of the action. Everybody wants to be associated with the World Cup. Some by paying millions, and others by using clever marketing tricks! Afterall, FIFA is one global stage where each corporate is vying for centre stage. Everyone wants to be associated with this heartthrob event. Around 1,600 members of the global media would be in Germany to cover the event. This translates into tremendous visibility to all associated with the event. Football will no more be just a game in June 2006. It will be metamorphosed into a world-class artistic and cinematic event. Heart-warming images would be showcased everywhere – on TV, in the newspapers, on internet – for the audience to relish and enjoy. Carefully crafted images will be doled out to feed the insatiable appetite of frenzied fans, and marketers.

15 main sponsors, 6 national promoters and a cast load of licensees, have together contributed some €700 million to FIFA. That’s not much considering the fact that the 2006 FIFA World Cup holds promises of capturing the attention of the entire world. Over 38 billion viewers are expected to watch the event during June and July. They would also be watching and enjoying various promotional activities being undertaken by various companies. Not surprising then, that the 15 official FIFA World Cup sponsors were ready to shell out $30-50 million, each, for the right to officially use the logos and branding, and hence grab a share of the limelight.

THE UNOFFICIAL

If you can’t use it officially, then use it “unofficially”, for no one can afford to stay away from this event. The world’s most creative advertising agencies are at their seductive best to grab the attention of the viewers. Everyone knows the reach of this event is tremendous. If you want to target young men this year, this is the event for you.

So if Pepsi, Nike and Carlsberg could not make it to the “official sponsors” list, they have a plan up their sleeves to help themselves win the hearts of this huge TV audience. Nike has used the innocent childhood images of Brazilian star, Ronaldino, to waltz straight into your hearts. Carlsberg on the other hand, decided to use the old heroes of the 1996 World Cup, who it showed enjoying a well-earned pint of Carlsberg after winning a game of football.

Once bitten by Pepsi’s “Nothing Official About It” campaign of 1996, Coca-Cola is leaving no stone unturned to ensure that its arch rival stays out of the stadium, the TV and even the minds of the fanatic fans. It has bought the in-stadia rights for the cup. It has tied up with Adidas to distribute soccer memorabilia. Thus, ensuring that Pepsi does not get a chance to pop-out from anywhere. To top it all, Coca-Cola India is an associate sponsor of ESPN-Star. So viewers in India, Pakistan, Nepal, Bangladesh and Sri Lanka would only get to see Coca-Cola ads on the TV screens during the matches. Pepsi, the virtual owners of cricketing events in India, are not disappointed. They are glad to stick to cricket, which is “the” sport of India. However, considering 75 million Indians watched the soccer World Cup four years ago, one wonders if Pepsi’s optimism is a wee-bit fake. It sure seems to have lost to Coke this time.

While Addidas paid millions, it’s Nike, the “unofficial sponsor”, which is once again hogging all the limelight. Just the way it did in 2002. Adidas, a German company, is going all out to block Nike ads. It would be too embarrassing for it to lose the advertising battle on its home turf. Not to be deterred, Nike has gone ahead and teamed up with Google to create the first social network for the fanatic football fans called “Joga.com” (joga bonito in Brazil means “play beautifully”), where it expects millions of people to register. Today “online” is the “lifeline” of young people, and thus, they believe, would be more effective than the traditional way of advertising. So while Nike is trying to even out with Adidas, Google is trying to settle scores with Yahoo – one of the official sponsors of the World Cup.

Back in 2002, Elvis, once again gave a hit, all thanks to Nike who used a remix version of his very popular song “A Little Less Conversation” for their ads, where they created a “secret tournament”. The ads were so popular that the Elvis song topped the charts and became the number one hit that year. Nike ads were more popular than Adidas. To top it, that year Brazil (Nike sponsored team) beat Germany (Adidas’ home team). This year, Adidas is taking no chances. It’s spent $200 million on its “+10” campaign, which shows how anyone, plus ten players, makes a football team. Its kid, Ronaldinho (Nike ad), vs. kids, who make their football team (Adidas ad). Let’s see who wins.

Lufthansa has dressed up 40 of its aircrafts by putting football decalls on their nose cones. So, even though Emirates has paid the millions to FIFA, it’s Lufthansa with its football nose that seems to have stolen the spotlight!

Afterall, it pays to be associated with the World Cup. So the Swiss Tourists Board has started luring visitors with an ad, which goes like this “Dear girls, why not escape this summer’s World Cup to a country where men spend less time on football and more time on you?” Well, worth a thought ladies, when you have brawny lumberjacks, and Mr. Switzerland 2005, extending the invitation.

THE OFFICIAL

Old, hackneyed phrases and mundane themes will not work this time. You’ve got to be different to be noticed. It’s estimated that about €2.5 billion would be spent in Germany on advertising. One can just imagine the onslaught of ads, the viewer would be subjected to. According to One Publicis, the media-buying unit of Zenith Optimedia, global ad spending would increase by 6% this year, to $429 billion due to the World Cup. With such an amount of advertising frenzy, it’s obvious, only the good will survive.

So Master Card spent 32 days to shoot its ad, which ends with “football fever. Priceless” 100-odd fans were shown cheering from 30 different countries.

Gillette has a spot, which shows fans wearing the colours of their team and carrying the national flag. Depending on where the ads will be aired, the company plans to digitally alter the colours to match with those of the country where they are being shown. Budweiser has decided to play it safe. It’s an American brand, and Americans have a reputation of having no football knowledge. So very intelligently it’s come out with the slogan “You do the football, we’ll do the beer”. At this point, no one wants to mess with others’ sentiments.

FIFA has signed agreements worth more than $888 million with its various partners and sponsors. For a whole month it would command the viewership in 189 countries, thus making it a very powerful body. It’s laying the rules and everyone is following them. So from June 9 to July 9, the AOL Arena would change its name to FIFA World Cup stadium, Hamburg. It would cost the German authorities half-a-million euros as settlement charges to the stadium sponsor AOL. Twelve German stadiums would lose their official names for the next one month, since they are not the official sponsors and FIFA does not want them anywhere near its game to give them even an iota of publicity. Otherwise, no one would shed those millions to become their official sponsors. Hence, within a kilometer of the 12 stadiums, FIFA forbids the appearance of any logos & advertising of non-sponsors. To complicate matters further, FIFA has demanded that no public events be held on match days

THE UGLY

FIFA needs to take care of its sponsors, for them to take care of it. The 2010 world cup would have only six worldwide partners, unlike 15 this year. One would need $125 million to belong to this elite group. The kind of mega exposure, this event guarantees, it’s not surprising to find sponsors already fighting for that coveted title of “partner 2010”. Not just the 2010, but companies like Budweiser have booked themselves as the official sponsors of the 2014 FIFA world cup, too.

With the rising popularity of sports, it’s the corporate sponsors who have become more powerful than the federations which govern them. These are the companies whose annual revenue is several times the GDP of smaller countries. They are the ones who put millions at stake and want every penny’s worth of return. Sometimes, things take an ugly turn too. Nike sponsors the Brazilian soccer team only because of Ronaldo. It could not afford to allow him to rest, even though he suffered from convulsions the night before the 1998 world cup final. He had to fight it out in the field with Adidas sponsored Zinedine Zidane, else Nike would lose its millions. In order to ensure that the match between Nike and Adidas, oops sorry, between Brazil and France goes as planned, they didn’t hesitate to pump Ronaldo with pain killers and force him to play.

THE MONEY

“Sports” is no more just sports, it’s a merchandise, and the players are peddlers of the goods of their sponsors. When Ronaldo plays, some 2000 jerseys with the number used by him during the game, are sold everyday.

Beckham is a brand to reckon with. Today his hairstyle gives him more media coverage than the number of goals he scores. He has sold sunglasses for Police, clothes for Marks & Spencer, cola for Pepsi, mobiles for Vodafone and now, for $9 million, he would be the face of Gillette for three years. Analysts estimate, he is a brand worth $375 million.

Sports celebrities are demigods today. On the Indian turf, you have sponsors dancing to the tunes of tennis-sensation, Sania Mirza. When she encountered Maria Sharapova, the advertisement rates of that match shot up by 15% in India. She was specially assigned one of the three show courts so that the game could be telecast directly to India, where many were staying up late to catch her on TV.

Cricket is the second religion in India and cricketers are worshipped, by both the fans and the corporates. Sehwag endorsed Dabur tooth powder and stopped the drop in its sales. In fact, the ad recall of the brand increased by 40%.

Sports stars guarantee television exposure of corporate logos when they play their game. That’s what all sponsors are looking for. The rules are straight, if you play well you earn not just fan adulation, but sponsors too, who will ensure that you and your fans wear their brand! The sporting-goods industry is estimated to be over $ 600 billion, which is more than the GDP of many countries. If we do a little more number crunching then consider this, in 1993, $9 billion worth of goods were related to sports, and the top three television networks generated $2.2 billion worth of sports related advertising while the cable networks generated $800 millions.

Every successful star, every and successful sporting event generates millions for the sponsors. When Japanese football games were aired on TV, Fuji Bank got one million new depositors that year! Business houses don’t hesitate to own or purchase sports teams, be it soccer or baseball or basketball. As long as they can be marketed, it’s okay. As long as people remain passionate about the sport, corporates will rake in the moolah. As the D-day nears, you will get to witness some adrenaline pumping action both on-screen and off-screen. Watch out for the sponsors, and see how they bend it better than Beckham!

Thursday, May 25, 2006

“Martini –Shaken not stirred”


The mantra is quite clear; brands today are using in-film advertising of their brands to create sustainable competitive advantages...


It was very much a ladies’ drink all though the 60s, but when James Bond took a sip – things changed for the Martini. Reese’s Pieces was just a candy brand till E.T. dug his alien hand into a packet of the candy and gobbled it up. Enfield’s black-and-yellow Rajdoot GTS Bike would have been just a bike had not Raj Kapoor picked it and put it in his film Bobby. The bike catapulted into becoming a legend. People started entering the shops and asking for the “Bobby Bike”.

If these were not enough, consider this: The car company Audi especially created the Audi RSQ concept car for the movie I, ROBOT. The car was customised so that it could seamlessly fit into the movie. The car makers worked with the director of the movie and with the designers, till both sides were satisfied with the final outcome. Today, no sports film is complete without “Gatorade”. You may not be able to afford real players or real coaches, but a bottle of Gatorade can turn on the magic. So be it Coach Carter or Jerry Maguire, Gatorade is always there.

Now that’s how in-film advertising is changing the way we market our products and brands. It’s the new buzz word, and everybody is clamouring on to this bandwagon. Scripts are being made to fit in brands, and marketers are doling out lots of moolah to be able to star in these films. Coke gave Subhash Ghai Rs.1 crore so that Aishwarya and Akshay could share a bottle, in the movie Taal! In fact, if rumours are to be believed, then that particular scene was shot with both a Coke bottle and the Pepsi bottle. The highest bidder got to feature in the movie! Stroh’s Beer paid Rs.15 lakhs for a 15 second appearance in the film Dilwale Dulhania Le Jayenge. All Shah Rukh did was mention the brand name in one of the dialogues. Not bad. Tata Safari was ready to shell out Rs.10 million for the film Road. It was probably more than the budget of the film!

This amount is peanuts, compared to what Hollywood blockbusters earn through corporate sponsorship deals. Jurassic Park grossed around $250 million only through such sponsorship deals. In fact, in-film placement and brand association with movies is big business in Hollywood. It’s a $450 billion industry. Though a fledgling industry in Bollywood, yet in-film branding is slowly but surely growing. So if the movie You Have Got Mail made a cool $6 million from its corporate sponsor AOL, Taal and Yaadein of Subhash Ghai raked in Rs.2 crore and Rs.3.35 crore worth of corporate deals respectively. The revenues through corporate deals are so lucrative that even conservative film makers like Barjatiyas of Rajashri films, who made blockbusters like Maine Pyar Kiya, are looking around for such deals. Moreover, advertising agencies like Percept, Leo Burnett et al, have now organised separate divisions to look after in-film product placements.

If those were Rishi Kapoor and Dimple Kapadia who eloped on the Rajdoot bike and made it a craze in India in the 70s (and introduced us to in-film branding), then it was Katharine Hepburn in “The African Queen” who tossed loads of the product “Gordon’s Gin” overboard, back in the 50s and started this trend of in-film product placements in Hollywood!

But then, what is it really that is making marketers and producers alike to come together and strike deals.

1. In-film advertising breaks the clutter:

Today the consumer is inundated with advertising. Be it television, radio, billboards, magazines, everywhere there are ads. People are so fed-up of watching countless number of ads on television that some television networks like ABC and FOX have started presenting shows without ads! In-film product placement helps in breaking this clutter and ensures that the viewer watches the product while watching the movie. The marketer is sure that unlike TV – where chances of the viewer taking a loo-break during the commercial break are high – a movie hall experience ensures the viewer appreciates the product fully engrossed.

In generic speak, TV commercials are today considered annoying, but not in-movie commercials. No wonder, in the movie What Woman Want, which had Mel Gibson starring as the lead, you had a Nike commercial woven into the script and shown in the movie. No one realized they were actually watching a commercial, camouflaged in the screenplay. The movie Evolution featured a brand of shampoo, which had a chemical that could destroy both dandruff and dinosaurs (yes, these things happen in movies still). It saved your hair, your planet and the company from losses. Talk of brand recall – what could be more effective than this!

2. It increases market share :

When Melissa Mathison was writing the script for the movie E.T. The Extra Terrestrial, with respect to a scene where the alien is supposed to eat candy, Melissa proposed M&M’s candy bar. The company refused the movie director’s offer, not realizing that it would eventually lose out on market share. One week after the movie premiered, the sale of Reese’s Pieces candies shown in the film increased by 40%. Every kid who saw the movie now wanted that candy!

It is of no surprise that every time a new James Bond movie is launched, BMW launches a new model. Just a month after one particular Bond movie (Goldeneye) was released, BMW received 9,000 orders for its two-seater car. No wonder, the company was ready to pay a premium to oust 007’s signature Aston Martin & use the BMW Z3 Roadster instead. FedEx saw an increase in its brand awareness in the international markets (Asia & Europe) after Cast Away was released. The movie, The Firm, featured a Jamaican, brewing a brand of beer known as Red Stripe. According to Business Week Online, the beer’s sales increased by more than 50% in the first month after the movie was released.

Dallas World Aquarium suddenly noticed an increase in the number of visitors to its penguin exhibit. They had never seen such excitement earlier. That’s when an intelligent presenter figured out the reason. He asked before the show, “Who saw the movie March of the Penguins?” As expected, a large number of hands went up. It was this Oscar nominated film, which had fuelled the demand for penguins! Films have tremendous power that can be exploited by marketers.

3. The advantage of Star Power:

You can get celebrities from the film world to endorse your product at relatively very less cost. So while Minority Report showed Tom Cruise entering a GAP store, one could also see that he was wearing a Bulgari Watch. Just for a few lakhs, BSA SLR had Aamir Khan riding their cycle in the movie Jo Jeeta Wohi Sikandar. It didn’t cost marketers too much to make Amitabh Bachchan insist that his wife consume calcium Sandoz in the movie Viruddh.

When the film star also happens to be the brand ambassador of the product, it makes better sense to place your product in that film. So Hyundai Santro was a prominent feature in Shah Rukh’s home production Chalte Chalte. Pepsi was eager to feature in the movie Kabhi Khushi Kabhi Gum. Not only did the film have a line up of every marketable Bollywood star, but also had the credit of most of them having been Pepsi models. If Tom Hanks played a FedEx employee in Cast Away, then our Amitabh played an ICICI Bank employee in Baghban. ICICI was visible for 10 minutes in the film [No T.V. commercial could give it so much visibility!].

When the brand endorsers are seen using the endorsed product in the film, it makes the brand more convincing, apart from the added bonus of star power. To establish a foothold in the south, Tata Indicom willingly spent Rs.2 crore just to be associated with the recent Rajnikanth blockbuster, Chandramukhi.

4. Builds relationships:

Well known brands don’t need to build awareness. They need to build a relationship with them. Cadbury Five Star (a very popular chocolate brand) decided to associate itself with the Tamil movie Choklet. It was a movie of the youth showing fun and masti and Five Star wanted to associated with that feeling. They even went to the extent of having a song in the movie titled, “Five Star, Five Star.”

The well established brand Strepsils, known for its innovative marketing strategies, did not waste the opportunity of associating itself with, Preity Zinta who plays a radio jockey with a lovely voice in Salaam Namaste. This association helped make the brand look younger & trendier.

5. It’s the multiplex culture:

Retail marketing is at its peak today. With 250 malls coming up, it’s estimated that some 1800 screens would soon be put up in these multiplexes. Undoubtedly, this would drive the consumer, especially the SEC A viewer, away from the television to these malls & halls. With this kind of a promise, it is no surprise that brands too are flocking in with their goodies into these cinema halls.

6. A good launch platform:

Bollywood is the new ground for product launches today. Swift was launched in the movie Bunty Aur Babli. Titan launched its new range of jewellery in the movie Paheli. Not to be left behind, Rakesh Roshan has tied up with the jewellery brand D’damas. They will launch their jewellery (inspired by the film) in the film Krrish – a sequel of Koi Mil Gaya. The international brands like IKEA & Home Depot used the movie Humko Deewana Kar Gaye to launch their international range of furniture in India. This increase in curiosity level clearly helps brands to cash in on publicity generated quite regularly by such activities.

7. When you have no where to go:

Some companies don’t have many avenues left to advertise. For example, liquor companies are not allowed to advertise on TV. In-film product placement becomes a big opportunity for them. So Bagpiper was seen in the movie Dum, Zingaro Beer associated itself with Jism, while McDowell presented Stumped, Raveena Tandon’s home production. In fact, movies are great avenues for even cigarette companies to display their aura and brand personality. Philip Morris paid $350,000 to place Lark cigarettes in the James Bond film License to Kill, while Marlboro paid $42,500 to appear in Superman II. Such hidden advertising has great potential; though whether good or bad, is debatable.

8. Promos help the brand:

Today, promos of many movies also carry the logos of popular brand names. So Rang de Basanti had the Provogue logo in its promos. Zinda had D’Damas in its promos & trailers. Paheli saw Shah Rukh and Rani wearing Tanishq jewellery in their promos. Mangal Pandey – The Rising had the logos of Titan watches in its promos.

A word of caution. Subtlety is the key here. The message should be well-woven into the script. The product should blend with the theme of the movie. FedEx blended well with the script and storyline of Cast Away. Thums Up gelled well with the macho image of the Kaante men. In fact, it was so well placed that it was recognized as the top 10 brand associations of 2003 by Advertising Age Magazine. Being outlandish and loud will not work. The ad should say less, to be non-obtrusive. If it looks like an ad, the audience will switch-off.

The medium is powerful, there is no doubt about that. In fact movies are such a craze that not just the originals, but even the spoofs work well. Gold Member, which is a spoof on the James Bond film, showed a car called Shaguar (a spoof on Jaguar). They raised $120 million more than the original Bond film. That’s how big this film industry is. Today, brands are popping up everywhere, much more than previously. Be it TV shows or movies, one would find them everywhere. The hugely popular American Idol show has judges sitting with big red cups of Coca-Cola. The host of the show mentions AT&T wireless each time the contestants finish a song. Ford too has its logo prominently displayed here. They all paid a few million dollars for that. Just to satisfy your curiosity, each of the three paid $26 million for one deal. It sure must be worth it.

Back home, when Jassi was turning over from an ugly duckling into a beautiful swan, companies made a beeline to be a part of the transformation. They knew a lot of girls across the country related to Jassi & they all wanted to grab the attention of this market. Be it TV or movies, the stakes are high, and so are the payoffs. It’s a thrilling ride. The canvas is large, the possibilities unlimited. Today, even movie names are getting branded. Consider these movies, Harley Davidson and the Marlboro Man, or The Demise of Swissair, or The Devil Wears Prada. If grapewine is to be believed, there is a new Tamil movie coming up named Three Roses. This name of Three Roses happens to be a brand of soap from the HLL stable.

The day is not far when brands of such corporations would become producers (of movies, that is). But till then, in-film branding seems to suit both the producer and the marketers. One gets decreased costs, while the other gets increased visibility. So put on your impressive thinking caps. Innovators will be the most successful here. Get ready to Bond with the best. Let’s drink to that – a martini... shaken, yet not stirred!

Sunday, May 14, 2006

You’ve got Mail


The right message and design along wth the right database, can turn a direct mailer into a really lean, mean , marketing machine.


Back in 1886 a young railroad telegrapher in Minnesota acquired a shipment of unclaimed and thus undeliverable gold-filled pocket watches. They were exceptional in quality. He also happened to have a list of 20,000 names and addresses with him of railroad employees just like him. It struck him that they too would need an accurate timepiece. So he mailed each of them a letter which stated that he had just purchased an unclaimed freight of watches, whose quality he personally vouched for. He was selling them at a bargain price. Would they buy one from him?

If legend is to be believed, he sold all his watches in record time. Not just this, some of his new customers were soon ordering additional watches. So he mailed another letter to all his old customers, asking if they wanted more of those watches. Many said “Yes”.

If that was not enough some of his now regular customers, sent some of their watches for repair. So this time round he sent another letter to his customers, that he could also repair their disabled watches. He now expanded, by including repairing of watches as part of his business. Eleven years after his fortunate purchase of that unclaimed freight, his one page mailer had turned into a mail-order catalog of more than 750 pages with 6000 items. By 1902 the sales of his company had exceeded $50 million annually. The man was none other than Richard Sears, who founded the Sears, Roebuck & Company. Today the Sears Roebuck catalogue has become a household name. That’s Direct Marketing. If one has to go by definitions, then the best and the simplest was given by Drayton Bird. He said “any advertising activity which creates and exploits a direct relationship between you and your prospect or customer as an individual is Direct Marketing”.

Customers are getting more and more demanding. They expect greater variety of product and service to match their individual needs. They need to be targeted and marketed to directly, with tailor-made products. So direct marketing is growing in importance day-by-day. Today just about every company engages in direct marketing of one sort or another. In fact there are some businesses that are based on direct marketing – like Reader’s Digest or Time Life Books. Tools and techniques of direct marketing can be used effectively by any enterprise. Warner Brothers used it to promote their World War II movie “Memphis Belle”. They mailed 7,00,000 post cards offering a special $1 discount to each recipient and a guest for evening performances of the new movie. Interestingly these recipients were purchasers of the Time Life books or videos on subjects such as World War II, Nazi, Germany etc – all likely to be interested in the movie. Warner Brothers had formed a new organization Time Warner with the publisher Time Inc. They used this affiliation very intelligently to promote their movie. Direct Marketing did help in increasing ticket sales.

“If you sometimes unbutton your collar at the office we suggest you read on”. This was an advertisement for The Custom Shop Shirtmakers. It explained how only a custom made shirt could provide that extra quarter inch which was not possible in a readymade shirt. The ad. concluded by saying that “once we have your pattern you can reorder by mail or phone – very convenient” Come to think of it now you could actually order a shirt on the phone!

Back in 1952 Soichiro Honda and Mr. Fujisawa knew that one day they would have the best bikes in the world. Honda would make them and Fujisawa would market them. Honda soon made the Cub F-type. It was a small lightweight 50cc 2-stroke engine. It was smart and cute. This was also the time when often they would be asked by car dealers “What does this Honda Company do?” It was really difficult for them to get dealers and convince them to stock their product. That’s when Fujisawa thought of the numerous bicycle shops all over Japan. He decided to contact the country’s 50,000 bicycle shops by using a direct mail brochure. It was a masterpiece. It clearly showed how well he understood his customers. He wrote “After the Russo-Japanese War (1904-05) your ancestors took the courageous decision to launch the imported bicycle in Japan and they are still the basis of your business today. But now customers want bicycles with engines. We at Honda have made such an engine. Please reply if you are interested”. Fifty – four years ago, there were no automated means of sending out 50,000 letters. Every single one had to be written by hand. The work was given to freelance clerks. However time was short so all the staff joined in to help. The response was incredible. They received 30,000 enthusiastic replies.

From movies to shirts to bikes – everyone has gone the direct way and it works. A good direct mailer is always a very useful marketing tool. A product is just a bundle of benefits; your direct mail copy lets the consumer “sample” the product’s benefits before he buys it. An intelligently written mailer can work wonders for the bottom line of your organization. Bi-Intelligent, Inc. a New York based software company was selling a product called “Easyfire” which could enhance the performance of several software applications. It was priced at $89.50. The company sent out mailers where the headline on the envelope read “For $89.50 you can make your IBM as easy to use as a Macintosh”. Surely a lot of people did open those envelopes.There are numerous factors to keep in mind while working on a direct mail campaign. Remember the simple 3C’s rule.

a. The Customer
The customer is the lifeblood of any organization. Every business is about creation and cultivation of customers. As Peter F. Drucker once observed “Companies are not in business to make things, but to make customers”. So you need to understand your target market well viz a viz – in terms of what are their need and desires, and what is it that will motivate them to buy. Not just this you also need to cultivate your customers. There is no tool stronger than direct marketing which helps in knowing and cultivating customers. Today with the help of technology, you can easily find out who are your repeat purchase customers, who are the one time buyers and who are the most loyal. Accordingly you can customize your mailers and achieve better results.

So, know your customers well, and establish a relationship with them. Sales are simply the results of such successful relationships.

b. The Contents Once you know your market well, you can design a content which appeals to it. Anyone can write a letter, but not everyone can write an effective letter. An effective letter is one which clearly indicates “What’s in it for you”. The reader should know instantly how he or she will benefit from the offering. The reader should feel that he is the special one. If you can give a personal tone to the letter chances of success are higher.

Enthusiasm is contagious. Show it in your letters. Write like a winner. Open your sales argument with your strongest sales points. The reader will definitely respond. Even though there are no rules yet some sentences always work. Like

  1. I have something you want….
  2. I want you to have this, but If I don’t hear from you I’ll have to offer it to somebody else.
  3. You can still get rich…

To these claims, if you can add something which makes those claims sound authentic, you have hit the nail on the head. To the above three claims you could add sentences like

  1. Here’s why or This is why I’ve chosen you for this offer.
  2. That’s because …
  3. This is what will happen…
There are some tricks which somehow always work.
  1. Open your letter with a question. It immediately and almost always involves the reader.
  2. Use exclamation marks… the reader will exclaim with you!
  3. Your contents should compel the reader to open the envelope. If you can do that, you have been successful. Consider this. You received a letter which says “Congratulations! You are our million dollar prize winner…”. Chances are you will open the envelope.
  4. Case studies have shown that a reader typically reads the first few lines of the letter and then his eyes go down the page to the P.S. So the postscript is your best buddy. Its always a good idea to incorporate the main points of the letter in the P.S. once again.
  5. Always call for action at the end. Either ask them to call a toll-free number, or create a deadline. A deadline usually increases the rate of response.
  6. “Brevity is the soul of wit” said William Shakespeare. He could not have been more correct. A short letter with short sentences and very simple eighth grade english always works.
  7. The Golden Rule is that there is no rule. Before you launch your direct marketing, blitz test, test and test. If it works it’s a rule! Follow these tips and you would be ready to make a rocking mailer.

b. The Contact The actual people who receive a mail from you are very critical. You must have the right mailing list. A good database is a very powerful tool and companies go to any extent to build it.

Gerber is a company known for baby food. The company entered into life insurance. While the baby food was sold off the shelf the company decided to sell its insurance policy by mail order. The insurance covered the child till he was 27 years old. The slogan they used to market to the parents was “Ask your baby about us.” Initially they had no database. However once the people applied, the company soon started targeting the children, once they became young adults. The mailer said “Your parents bought this life insurance for you when you were born and have been paying the premiums ever since. Isn’t it time you started buying your own life insurance?” The company had developed a relationship and was now leveraging that. Many of the children did stick to Gerber Life Insurance – just like their parents. If this was not enough, when the parents became grandparents, Gerber sent them a letter reminding them, how they had insured the lives of their children. Now wouldn’t they want to do the same for their grandchild? Not many refused!

A mailing list afterall is not just a collection of addresses. It is a list of people who actually need your product or service. Gerber for one sure has developed a very strong and relevant mailing list.

The falling birth rate in Britain was a cause for concern for C&J Clarks Ltd., Britain’s largest shoe manufacturer. The retailers started stocking less and less of baby shoes. Magazine advertising was not helping much either. So the company decided to go direct. They contacted 2,80,000 new mothers while they were still in the hospital and presented them with a “Bounty Box”. It contained a letter offering a poster which could be hung in the infant’s room and had a copy describing the various milestones the infant would pass through – like when would he start crawling then sitting then speaking then walking. When he would start walking he would need shoes. So the letter also described the benefits of buying the right “First Shoes” for the child. About 15% mothers wanted the poster. So Clarks soon had a database of 42,000 customers. When the children of these mothers were about to start walking, the mothers once again received a letter from Clarks with a leaflet describing how to choose the right shoes and the hazards of choosing ill-fitting shoes. Of course as the baby grew he would require another pair and there always was a letter from Clarks to remind the family where to go to. These letters always resulted in increase in sales because they were targeting the right customers.

The success of any direct mail programme depends of the Contact list. Make sure its relevant. Otherwise it doesn’t take long for “Bulk-mail” to become “Junk-mail”. That’s the razor’s edge you walk on. So you need to select your prospect with care.

Finally, remember studies have shown that it takes eight to ten contacts before people remember your message. No wonder you see the same ads being repeated again and again on T.V. So don’t stop mailing. Keep in touch with your customers constantly. Keep knocking on their mail boxes and keep reminding them about you and your product – they will take notice. If your mailer is well written and relevant they will respond. So go ahead reach out directly to them and say – you’ve got mail! It will work.

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