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Starting the debate, Srivastava
agreed that the fast growth of below-the-line (BTL)
activities are definitely a threat to the mass media
but there lies an opportunity also in terms of revenues
through new delivery platforms. "For an effective
execution of a media plan in a regional scenario, Micro
Marketing has increasing gained significance."
Harish Bijoor in his openings remarks said, "Today
around 32-33% of the total promotional budget allocation
goes for below the line promotions. It was some 14%
ten years back. And In 1989 when I started out, it was
6-7%. In the times to come, it will reach a ratio of
70-30, where seventy percent will be going into below-the-line
activities."
As to the reasons for such a jump in below-the-line
activity, Bijoor said, "Today the marketers are
looking for returns from the buck very aggressively.
Three factors holding driving this trend are measurability,
Focus and Innovation. While above the line advertising
helps in the 'massification' of the product, its the
below-the-line efforts which results in 'demassification'
and sale of the product."
The issues here are of
brand perception. Added Bijoor, "There has been
a phenomenal jump in the number of televised brands
today. They work occasionally, but it's in the below
the line that brands perception can best be addressed.
The measurability issue is also taken care of well in
below the line. I believe that in the time to come,
non-media activity will grow tremendously."
Commenting on the increase
in below the line activities, Gemini Ramamurthy said,
"Companies are looking for expenditure-cut, that
is the main reason that the below the line spending
has gained momentum." He also directed the attention
of the panelists on the onslaught
of WTO regime next year, which could spoil the party
for many of the players on both the sides if preventive
steps were not taken immediately. WTO will affect the
above the line spending in a big way, as all the international
players will start competing for revenues.
Drawing some examples from
her profession, Geetu Gidwani Verma said, "Mass
media by far is the most powerful medium in terms of
its reach. It is audio-visual and effects directly to
its consumers. Having said that let me point out the
case of the brand 'Whisper'. At the time of launch,
we went all out in the mass media. There were bold ads
when even women used to avoid the subject publicly.
We used 50% of our budget for sampling. We went door-to-door.
It was a perfect example of mass advertising and below-the-line
promotions complimenting each other to achieve a single
result. Therefore I am pushing for a case where both
kind of advertising and promotions will co-exist."
Srikant Sastri was of the
opinion that while below the line has been grabbing
share of promotional budget, it's a threat for mass
media. Media Agencies have been smart enough to acquire
smaller below the line firms, but it is the media itself,
which has not realized the potential of below the line
promotions. "They still believe that advertising
in mass media alone suffices. Which is not all true.
Both are complimentary to each other. Look at the way
the bigger media groups like the Times Group has been
involved in events and promotions. Similarly, there
is the Jagran Group that is also in events. Smaller
players in media will have to appreciate the power of
below the line promotions"
But does below the line
help in building brands? "Yes they can build brands,"
said Bijoor. While media agencies ask for margins in
mass advertising, that is not the case in BTL,"
added Bijoor. "Mass media helps in the selling
of a concept while BTL intensifies the effort in selling,"
added Ramamurthy.
There have been occasions
when BTL have been able to build big brands. "Take
the example of Barista and Starbucks. They only spend
in BTL activates yet they are such big and fast growing
brands. Take the case of 'Foodworld' in the south. Its
organized trade where the consumers can touch and feel
the product-all classic examples where BTL have worked
very effectively in building a brand on its own strength."
Consenting to it, Srikant
Sastri cited the example of a leading toothpaste which
over a three year period, managed to reach out to over
6 million school kids through contact programme in oral
health and hygiene thereby also touching their parents
- potential customers. "Today mass media advertising
is like an umbrella cover. We will have to go below
the line to increase brand presence and the sales,"
added Sastri.
"Amway and Oriflamme
are the classic example where BTL have worked single
handedly," added Bijoor. On the question of measurability
of BTL, it was widely felt that like mass media advertising,
BTL could also be measured. Ground level sales, constant
monitoring of consumer buying patterns are some example
where we can measure BTL," added Geetu Gidwani
Verma.
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