Capital Foods: Majority of marketing spends now online

The FMCG sector is one where online participation, despite early enthusiasm, is still limited to brand advertising. However, marketing goes beyond just that, and Capital Foods shares their recipe for a strong online presence with exchange4media.

e4m by Gopal Sathe
Updated: Mar 2, 2011 7:32 AM
Capital Foods: Majority of marketing spends now online

Having a digital strategy is more than just creating a Facebook page for people to click like, or streaming updates on Twitter. Opportunities of engagement are much higher online than any other medium, and any brand that seeks to leverage its interactions with users must be driven by content. Ajaay Gupta, CMD of Capital Foods, which owns FMCG brands Smith & Jones and Ching’s Secret, talked to exchange4media about the company’s digital presence.

According to Gupta, “Digital needs to be approached with a fresh paradigm. We are completely content driven, using technology to leverage brand building. We spend a large chunk of our budgets on content creation and social user interactions, and use social, search and display advertising as a catalyst to seed traffic to our platforms, which can then grow organically, thanks to the content on them.”

He added that for Capital Foods, digital was now the core marketing strategy, with over 65 per cent of the marketing spend for Ching’s Secret going online or on mobile, and over 20 per cent for Smith & Jones, which has now been raised to 35 per cent.

The company strongly believes in the value of social media as an engagement tool, with Ching’s Secret being highly active on Facebook and Twitter, and Smith & Jones having its own video channel on YouTube, for which the company creates videos regularly, for example, a series of cricket how-to videos made with a leading cricket coach. Gupta said, “We have over 5 lakh fans on Facebook, and 96 per cent of these are active fans. We answer customer queries on Twitter with a maximum delay of five minutes, and are branding using PC games. We are taking digital very seriously and are exploring all avenues.”

The company has also heavily invested in mobile advertising, advertising masala noodles and sauces on mobile ad networks, and has also created and met with success in using an ad ring back tone to drive brand recall.

Gupta further said, “Everything in the future will be digital, and we are taking the pole position for that world. Frequency of use and speed of connection are the big issue in digital right now, with less than 10 per cent of all users having adapted to a 24x7 digital lifestyle, but we believe that in 2-3 years, at least 15 crore people will be always on Internet citizens. When that happens, we’re planning on being the thought leader in the space.”

“New models of communication, real social interactions with real consumers, and scale are all advantages that the digital medium offers,” he added.

Also read:
Smith & Jones debuts ‘Cricket ka Tadka’ on YouTube


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