The current fiscal year did not only give way to a number of new trends in terms of demand, supply and consumption, but also saw consumers evolving as an unpredictable entity that has the capability to react on instincts. To leverage such a situation, marketers need to pick that uncommon nugget and use it to make a difference.
Marketers and brands need to have an ‘uncommon insight to uncover uncommon India’.
Ram Charan, Management Consultant, Speaker and Author explained that the demand story in India is now at crossroads. There are innumerable untapped opportunities in the RoI game; to leverage those, marketers need to let go of the rear-view approach and start making plans by looking forward.
Brands need to be very cautious of what they are selling and to whom. Pointing out at some of the emerging trends, Adrian Terron, Executive Director, Retain and Shopper, Nielson India said that brands now need to look at ‘Shoppertunity’. They need to know who their shoppers are and understand what they need through their shopping traits and not through presumptions.
Terron explained that there are two types of shoppers, LIVE (Low Income Value Explorer) and FTMTS (First Time Modern Trade Shopper). Both the type of consumers are now breaking stereotypes and establishing new trends. LIVE, unlike the perception, are now not confined to planned purchases but function on impulses to a great extent and FTMTS are more reserved in terms of impulse. Thus, brands need to look beyond such stereotypes and engage with their target audience.
A new trend witnessed in the market was the success of brand stretches. A number of brands stretched their parent products to new arenas and managed to capture the market successfully, creating a high success ratio for brand stretches. Arun Chogle, Client Business Partner, Nielsen India explained that while one out of 10 brand launches have been successful, one out of two brand stretches were successful.
To give a clear view of how brand stretches function, Chogle explained the types of stretches – format stretch, adjacent stretch and unrelated stretch. Format stretch refers to the core brand extending a branch in the same market with a new product, adjacent stretch refers to core brand extending itself in to a market related to the core market and unrelated stretch refers to brands extending themselves in a completely different market.
To create a successful brand stretch, marketers need to keep a few factors in mind such as thoroughly understand the core product, play to key strengths, treat the extension as a new brand and look out for weak areas.
In a constantly changing market scenario, how brands cater to demands is important. They need to pick on that one uncommon factor to strike a chord with the constantly evolving audience.
The above mentioned industry experts shared their views at Nielsen Consumer 360 India, 2012.