Brick or Click strategy: Is co-existence the way forward?
Industry experts' take on online vs offline marketing approach for brands
It appeared that a while ago, the e-commerce boom in India was here to conclude
the popularity of offline retail stores. e-tailing, once a threat to the brick
and mortar retailers, is now slowly but surely setting up offline stores to
expand its presence. With users being at the center of everything, it seems
as though customers want to reap benefits of both a touch and feel shopping
experience as well as a one-stop-shop platform accompanied by the convenience
of home delivery. The key question remains whether it is brick or click which
will dominate in the long run or is it about building a hybrid retail model
that has the best of both the online & offline worlds for today’s customer.
exchange4media spoke to brands in both e-commerce & retail chains to find out their views on an online vs offline marketing strategy.
Pepperfry: Will advertise where my user is
Digital-first brands such as Pepperfry, Myntra, Nyka, Urban Ladder and Health
Kart are tuning into growing their physical footprints in ways traditional retailers
haven’t yet imagined. The online furniture retail store Pepperfry is one such
brand which adds to the experience of an online retailer by showcasing a curated
range of furniture from its online collection. This helps consumers get a first-hand
feel and understanding of how the furniture will actually look when placed at
home. Speaking to exchange4media, Ambareesh Murty, Founder of Pepperfry, elaborated
on the reasons behind adopting the offline advertising medium of Studio Pepperfry.
He said, “It is the duty of every business to ensure that it is present wherever
the customer wants it to be. My customer is sometimes online, at times offline
and then on mobile sometimes. I will engage with my consumers as per the platform
they access.” This clearly proves that the merger of online and offline is imminent
as the customer wants the best of both worlds.
Online going offline
After a successful 5-year online stint, Falguni Nayyar’s Nykaa has also expanded their footing offline with an objective of being an Omni-channel destination in the beauty and skincare segment for its customers. Recently, Nykaa launched yet another brick-and-mortar store in Delhi at the Chanakya Mall by the DLF Group, adding to the existing tally of 20 stores in India. Online fashion portal Myntra too is looking forward to expanding on its current offline presence by increasing its brick-and-mortar store count, as it would help them strengthen the brand and further leverage their brand value. It seems as though, the once native-only online players are now trying to integrate various marketing-mix in order to provide their users with a seamless online-to-offline experience.
With the rise of online entities wanting to undergo a multi-channel experience, a few of the advertisers and marketers exchange4media spoke to had a different perspective to share. With respect to online brands some experts were of the opinion that those dealing with e-commerce should consider moving into high street markets only after cementing a strong and profitable market position within the online industry. This would help them negotiate better with retail partners in order to include their wares in the stores. Amazon’s India story is a shining example of e-commerce success which now aims at leveraging the offline presence of several retail stores across India to augment its last mile delivery network, this under the Amazon Easy umbrella, an India-specific innovation.
Amazon India’s story
Speaking to exchange4media, an Amazon India spokesperson said that their Amazon Easy initiative will help them experiment with physical retail even better. Through this channel they are able to equip offline partner stores with training materials such as browsing and navigation on Amazon.in which will further help customers set up Amazon accounts, make payments, answer status-delivery related queries and request refunds and returns if need be. Customers can also walk in to the neighbourhood Amazon Easy store for assistance while shopping on Amazon.in and choose to pay with cash on delivery or swipe their cards at the store itself while placing orders. “Amazon’s assisted shopping for users which pans across 14,000 stores currently also opens up self employment and other job opportunities for semi-skilled and partially skilled people," says the spokesperson.
Offline going online
On the other hand, we also have the once offline-only retailers speeding up in the race to keep track with online entities, taking competition to the next level. An example of such a deal is that of Walmart, which acquired a 77 per cent stake in online brand Flipkart, for $16 billion, making it perhaps the largest acquisition in the country. There is a bevy of foreign firms investing in India with the recent one being the Swedish furniture giant IKEA, which recently set up its first store in Hyderabad. The Swedish retailer also plans to open more stores in India by investing around Rs. 20,000 crore in the country.
IKEA in India
Speaking to exchange4media, Per Hornell, Head of Maharashtra Market, IKEA India, cited a few specific reasons behind their plans to go online even after a strong offline presence. Referring to the fast evolving e-tailing market in India, Hornell said that in addition to online, a brick-and-mortar concept would help IKEA to expand its reach with home furnishing offers at an affordable price for all. With changing consumption patterns, rising disposable incomes and the dining out culture, India’s retail landscape is thriving today and attracting significant investments. Hence, it is crucial for IKEA to invest in a tailored mix of sales channels such as, stores, online via web, mobile and pop-up stores, thereby being part of each of these markets and maximising reach, claims Hornell. So here again, the need of the hour is to collaborate the strengths of both mediums to make for a seamless experience for consumers.
Why the (Brick + Click) Model = A better fit
With the penetration of mobile devices and rapid technology adoption in India, consumers are resorting to varied consumption patterns, depending on their needs, inspiration and interests. With users taking to online shopping, offline retailers are innovating and going the extra mile for their users. While high street markets not only help brands boost their presence on ground, but also allows them to have an edge in logistics and distribution, online players come with a wider catalogue, better positioning and branding in the market, with a relatively frictionless customer experience to begin with. Keeping in mind what the industry experts have to say, it seems imperative that both online and offline players pull their weight and play to their full strengths and capabilities in the emerging Indian retail landscape.
Senior Correspondent, exchange4media, Delhi Apeksha reports on technology and the digital domain. She is a B.Tech graduate turned media professional with 6+ years of experience working in the broadcast industry as a business reporter, and has done social media marketing.
He was with Britannia for the last 17 years in roles of increasing impact in sales, marketing, strategy and P&L Management
Havmor, the ice cream brand and a wholly owned subsidiary of South Korean conglomerate Lotte Confectionery, has announced the appointment of Anindya Dutta as its new Managing Director. He will be the first MD after Lotte acquired Havmor Ice Cream in Dec 2017.
Dutta will be taking forward Lotte’s vision of expanding its business footprint in India. His mission will be at one end to leverage the legacy, the category expertise and brand equity that Havmor enjoys in the ice cream category to rapidly scale up the business towards a national leadership position and at the other end to evaluate and build synergistic expansion into adjacent categories.
Dutta brings 20+ years of leadership experience in the food industry across business verticals and categories including Bakery, Dairy and Confectionery. Prior to joining Havmor, he was with Britannia for the last 17 years in roles of increasing impact in sales, marketing, strategy and P&L Management. In his past assignments at Britannia he was heading the Dairy and Bread business and more recently he was leading the International expansion of Britannia as the Vice President- International Business.
“He felt an obligation to his fans to keep creating,” his daughter said in a statement to Reuters
Stan Lee, co-creator of iconic characters including Iron Man, the Fantastic Four, Spider-Man, Daredevil and the X-Men, has died aged 95.
“He felt an obligation to his fans to keep creating,” his daughter J.C. Lee said in a statement to Reuters. “He loved his life and he loved what he did for a living. His family loved him and his fans loved him. He was irreplaceable.”
Tributes from fans and celebrities across the world poured in. Here are a few:
There will never be another Stan Lee. For decades he provided both young and old with adventure, escape, comfort, confidence, inspiration, strength, friendship and joy. He exuded love and kindness and will leave an indelible mark on so, so, so many lives. Excelsior!!— Chris Evans (@ChrisEvans) 12 November 2018
Sad, sad day. Rest In Power, Uncle Stan. You have made the world a better place through the power of modern mythology and your love of this messy business of being human... pic.twitter.com/x6yZ6ClNSX— Mark Ruffalo (@MarkRuffalo) 12 November 2018
We’ve lost a creative genius. Stan Lee was a pioneering force in the superhero universe. I’m proud to have been a small part of his legacy and .... to have helped bring one of his characters to life. #StanLee #Wolverine pic.twitter.com/iOdefi7iYz— Hugh Jackman (@RealHughJackman) 12 November 2018
What a man. What a life.— Dwayne Johnson (@TheRock) 12 November 2018
When I first broke into Hollywood, he welcomed me with open arms and some very sage advice I’ll forever take to heart.
A true icon who impacted generations around the world.
Rest in love, my friend. #imagination #stanlee ? pic.twitter.com/dw3FXMgyHp
You let us be extra human... superhuman even. I am deeply honored to have been a small part in the Stan Lee constellation. pic.twitter.com/qmCrNHXUy1— Mark Ruffalo (@MarkRuffalo) 12 November 2018
Damn... RIP Stan. Thanks for everything. pic.twitter.com/TMAaDJSOhh— Ryan Reynolds (@VancityReynolds) 12 November 2018
Today we lost the hero of my favourite films. #StanLee— taapsee pannu (@taapsee) 13 November 2018
I almost believed he is a super hero who will never leave us ?
Along with him , my dream of meeting him, to discover a super power I always dreamt of having, will rest in peace forever n ever
The man who made me believe heroes exist around us & within us.— Arjun Kapoor (@arjunk26) 13 November 2018
Thank you @TheRealStanLee for giving us the hope & belief we all love latching onto... #RIPStan u will always be the worlds first super hero !!! pic.twitter.com/4JwjkWQqqc
Conceptualised and executed with BBH India, the film beautifully addresses the stigma that many Indian parents continue to face regarding the sexual orientation of their children
This Children’s Day BookMyShow has a special message for all parents. Conceptualised and executed with BBH India, this children’s day film beautifully addresses the stigma that many Indian parents continue to face regarding the sexual orientation of their children.
In consonance with the recent Section 377 verdict, it strikes an emotional chord and urges parents to love their children for who they are, regardless of who they love.
Speaking about the film, Marzdi Kalianiwala, SVP- Marketing and Business Intelligence, BookMyShow said, “At BookMyShow, we believe that entertainment connects us all. Pursuant to the recent historic verdict of decriminalization of Section 377, we wanted to put across our perspective and what better way to portray it than through the lens of entertainment. This film is an attempt to reach out to all parents and asking them to accept their children for who they are.”
Russell Barrett, Chief Creative Officer & Managing Partner, BBH India added, “The world of entertainment is probably the most egalitarian. There are no walls and no divisions here. In fact, entertainment brings people together, across geography, language, religion, sexual preference and class. In the light of the historic Supreme Court judgment on section 377, BookMyShow and BBH chose to play out a story of love and acceptance against the backdrop of the magic of the movies. We were keen to cast a real couple in the lead roles for so many reasons, the most important being, it was the right thing to do. We are so very proud to partner a brave, aware and modern brand like BookMyShow in this initiative and hope to do much more going forward.”
The film was launched in India in partnership with SAWA, the Global Cinema Advertising Association, and UFO Moviez with the support of renowned changemakers and celebrities
Diwali is a time of joy, giving and indulging in the finest food delicacies on offer. But what lies in store for the mother unable to feed nor provide a nutritious meal for herself or her children?
For them, the struggle for the basic necessity of life continues. With over 821 million people around the world hungry and/or malnourished, out of which 190 million undernourished are in India, Diwali can act as a catalyst to shed light on this situation.
The global “#FeedOurFuture” cinema advertising campaign and film, launched in more than 30 country cinemas including in India, is aimed at garnering the support of the global cinema audience to tackle hunger and encourage the people around the world to share their meal with those who are less fortunate and going to sleep hungry every night.
The film was launched in India in partnership with SAWA, the Global Cinema Advertising Association, and UFO Moviez with the support of renowned changemakers and celebrities such as Sonam Kapoor, Sonakshi Sinha, Dia Mirza, AR Rahman, R Balki, Ankit Kawatra (Feeding India) and Chef Vicky Ratnani, and will be shown in cinemas until December 2018.
The overarching theme for the exchange4media Conclave is 'Marketer and Machine: How AI will transform marketing?' The event will be held on November 16 in Mumbai
Artificial Intelligence has transcended the sci-fi fantasy world right into the real world rapidly shaping a world that looks a lot like Spielberg's Minority Report. The applications of artificial intelligence are industry agnostic, wide and varied. AI is soon finding its way through the marketing industry, giving strength to the data-rich ecosystem.
For now, AI is primarily used in recommendation engines and predictive analytics. Some companies are attempting to use it for real-time bidding infrastructure. This narrow zone in which AI is aiding marketers is expected to soon explode.
Technologies like 5G in telecommunications which will trigger applications like Internet of Things will present new challenges and drive growth of AI for businesses, says Anil S Nair, CEO & Managing Partner, L&K Saatchi & Saatchi India. “AI will shorten the consumer decision making process,” says Nair. He predicts that aspects of Search and Choose before buying will collapse into one when AI takes over because the machine takes over, because it “preempts the needs of the consumer and addresses those needs based on the behaviour pattern of the consumer.”
Marketers typically attempt to influence consumers at every stage of their decision-making process. When the process collapses, the marketer will need to pack in a punch in the limited opportunities available, says Nair. He quickly adds that while that may be the case for traditional marketing activities, AI will provide a multitude of layers where marketers can still influence a buy.
Therefore, marketers are treating machines as allies and not competition. “Machines have the power to amplify the decision and accelerate its impact. That's where AI could play a big role,” says Suvodeep Das, Vice President - Marketing, Sodexo Benefits and Rewards Services.
Marketers and agencies alike have therefore embraced AI and are attempting to make sense of it all. Just this year Publicis Groupe launched its proprietary AI platform Marcel which has been built by Microsoft. IBM’s AI marketing solution - Watson - which was built in 2011 has been helping marketers boost digital marketing.
But there are a few gaps in the AI-Marketer relationship. For one, “marketers do not understand the machine,” says Nair. “It sounds harsh, but it’s true,” he says. The reverse is true as well. The machine-makers do not understand the needs of the marketer. Describing the gaps in the relationship, Axon Alex, Head of Strategy, Jack in the Box Worldwide, says, “Marketers understand the possibilities of machine. But the machine is far from perfect right now to be understood.”
Alex adds, “Until we achieve the singularity of Marketer and Machine, it’s still the marketers’ job in identifying problem. However, the marketing wizards armed with AI will be better equipped to execute the more important task of identifying the problem with better precision rather than generalising and educated guesswork which is the case today.”
Varun Duggirala, co-founder, The Glitch, believes that although there are gaps, the tremendous amount of learning that is taking place on both sides is the biggest positive of this situation. He says that if the marketer is unable to grasp the complete range of abilities of the machine and use that to her advantage, then it is not the machine’s fault.
Duggirala had one piece of advice for the tech giants building and developing AI for marketing. He said, that the tools and technology need to be tuned in a B2C fashion rather than B2B to enable marketers to use these tools.
All the marketers and agency leaders exchange4media spoke to said that predictive analytics is the one AI-led tactic that they are most looking forward to work with in the future. The experts also said that they would like to see AI help in achieving personalisation at scale, move away from interruptive advertising to value-added advertising that targets consumers at the right moments.
We are standing at the threshold of an exciting world that will make sci-fi reality. Technology is changing the marketing ecosystem and redefines the roles and responsibilities of the marketers. Experts will discuss all these changes and understand the macro-trends that will define the future of marketer and machine at the exchange4media Conclave on November 16 in Mumbai.
The overarching theme for the Conclave is “Marketer and Machine: How AI will transform marketing?” Attend the enlightening sessions to hear what other expert speakers from around the globe have to say about Marketer and Machine.
For more details click here.
exchange4media Group Service
With the vision of Virat Kohli, the One8 Select collection offers affordable fashion-forward shoes and accessories that go seamlessly with attire all throughout the year
Aeon Sports India Pvt. Ltd in association with Virat Kohli brings to you their affordable luxury line, One8 Select.
The brand revealed its line on November 10th, at the Roseate House, Aerocity. With the vision of Virat Kohli, the One8 Select collection offers affordable fashion-forward shoes and accessories that go seamlessly with attire all throughout the year.
With their premium quality and up-to-date trends, this line is going to be every man’s dream. The team believes that formal footwear plays an extremely crucial part in our attire due to its sheer versatility. This versatility is synonymous with Virat, as he essays numerous roles and plays the part perfectly, always encouraging you to put ‘Your Best Foot Forward’.
One8 Select aims to reiterate the importance and impact of formal footwear in leaving a mark on whomever you meet, across various walks of life. One8 Select is Virat Kohli’s passion project to bring the world closer to his sense of style and freedom of expression. His vision for formal footwear is to be equipped to take your best foot forward. Shoes that speak about you. Shoes that complete you.
The collection witnessed a grand launch at Roseate House, Aerocity where the guests experienced a splendid fashion show as Virat Kohli put his ‘best foot forward’ on the ramp. The show highlighted all the collections in collaboration with ace designer Rocky S, post which the guests entered a brand experience zone to view the displayed collection up close and more intimately. The brand has launched with 5 different collections; The Achiever, The Wingman, The Debonair, The Superstar and The Alpha.
The shoes are made of pure leather and are available in multiple colours, like brown/shades of brown, black/shades of black, blue, purple, and over 30 styles between the price range of INR 3999-11999. The brand recognises the passion men have for footwear and targets all shoe aficionados.
One8 Select aims to be a part of the wardrobes of boys & men across all ages and demographics. The spokespersons representing the brand are. Vikas Kohli, Managing Director, Vaibhav Arora, Director-Marketing, Sanjay Dhingra, Director - Operations, Nakul Manchanda, Director - Sourcing and Ajay Gupta, Director - Sales & Offline Commercials.
They strongly believe that this footwear, made out of the finest materials, imprints a bold statement as bespoke footwear and gives a chance to men across all ages to style their look in the trendiest way.
Vikas Kohli believes that the brand will evolve just like Virat, saying,. “With the introduction of formal footwear and socks, the brand aims to equip Virat’s fans and everyone else with the tools that are needed to excel, at work and in life. It was an easy conversation with Virat as knowing him, and his drive for attention to detail, it was clear the formal line of footwear is where his principles can come to life.”
Speaking on the launch, Vaibhav Arora, Director- Marketing said, “With One8 Select we want to stand out in the realm of formal footwear and bring to life Virat’s vision of excellence and consistency with every step we take. Virat has a tremendous fan base and for many, he is an inspiration and an icon and with One8 Select we aim to bridge the gap between the two and bring the supporters close to Virat through our offerings”.
Director of Sourcing, Nakul Manchanda says that, “Understanding the need of the consumer and looking for the right product that just pushing a product is what we looked at with the launch of One8 Select.”
Adding to that Sanjay Dhingra, Director- Operations mentions that, “With the launch of One8 Select, our aim is not only to bring the product to the market but to ensure it is readily available and our consumer are spoilt for choice.”
While Ajay Gupta, Director - Sales & Offline Commercials said, “Throughout my foray in sales and provisions I have understood that a product travels far when its good, but it goes further when we know what the consumer is looking for. Addressing the vacuum of luxury is affordable where One8 Select comes into play."
The brand aims to build upon their existing range in the coming months and cater to all demographics across all ages even further. They envision a future where this collection strikes a chord with not just Indian but International audiences. The brand will be selling both online with Amazon as their exclusive e-commerce partner and across multi-brand stores.
The same category also saw the entry of Incredible India tourism campaign after a while at seventh spot
In the list of BARC Top 10 Brands for Week 44 (October 27-November 2), Amazon retained its top spot with 17,920 insertions even after a drop of 45 per cent in insertions. Trivago also maintained its second spot with 10,393 insertions.
The category saw the entry of Vimal Elaichi Pan Masala and Flipkart after a brief period in the third and fourth spots with 9796 and 9694 insertions respectively.
Santoor Sandal and Turmeric slipped to fifth spot with 9536 insertions.
Bharatiya Janata Party, Incredible India and Kalyan Jewellers took the sixth, seventh and eighth spots with 9067, 8926 and 8910 insertions respectively.
Wipe slipped to ninth spot with 8823 insertions. Dettol Toilet Soaps took an entry after a while at tenth spot with 8350 insertions.
In the same week, in BARC Top 10 Advertisers list, FMCG brand Hindustan Lever continued to lead this category with 1,43,930 insertions. Reckitt Benckiser stepped up to second spot with 69,407 insertions. ITC Ltd slipped to third spot with 52,297 insertions.
Amazon Online India and Procter & Gamble retained fourth and fifth spots with 31,630 and 27,296 insertions respectively. Brooke Bond Lipton India entered after a brief hiatus at sixth spot with 22,957 insertions.
SBS Biotech and Ponds India climbed to seventh and eighth spots with 22,300 and 21,904 insertions respectively.
Cadburys India slipped to ninth spot with 21,889 insertions. Wipro forayed into the category at tenth spot with 21,236 insertions.
Wavemaker South Asia CEO talks about the strategy that led to bagging big accounts including Bisleri, Mondelez, Mother Dairy to name a few as the agency completes one year.
With big wins like Mondelez, Mother Dairy, Eureka Forbes and Bisleri to name a few, Wavemaker that completed one year of its inception on November 9, has every reason to celebrate. The agency claims to have won businesses of over Rs 1000 crore in its maiden year and is aiming to exceed all predicted growth numbers. As the agency marks its first anniversary we speak to Kartik Sharma, CEO, Wavemaker South Asia, about factors that are driving its growth. Excerpts:
With consultants and AI driving media business, pitches are becoming increasingly competitive. Many experts say pitches have now reduced to pricing. Despite all these constraints, Wavemaker in its inception year has done extremely well. What are the three key things that have worked for you?
Firstly, despite the challenges in the market, we have indeed done very well. We have won almost close to Rs. 1000 crore in new business in 2018 and most of our businesses are coming on the back of our rapid growth planning thinking. It is the planning framework which we use across clients. Rapid growth planning is rooted in the consumer purchase journey. Inside that sits a large scale study called Momentum. It is the largest study in the world covering 7,00,000 consumer journeys, across 35 categories in 70 countries, including India. It helps us decode the challenges for many categories and gives us benchmarks on what kind of solution we need to craft for a particular context.
On top of rapid growth planning, we also do customised analytics. Analytics enables to unlock a lot of growth for clients, which were not known to them earlier. It is a very intense data driven approach to solve marketing problems. In 2018 we have deployed artificial intelligence based analytics frameworks to solve clients' problems.
Last but not the least is the quality of the team and the creativity which they bring to the table. If you don't have a good team, it doesn't matter what frameworks you have. I am blessed to have a fantastic team and I am really proud of them, and their achievements be it the 40 under 40 recognition in Impact or the young Emvies.
The pitch for Mondelez went on for over five months. It has been one of your biggest wins this year. What in your opinion gave Wavemaker an edge over other agencies in this particular pitch? Going forward, what is it that you are doing differently for this client?
First of all, the above three points which I just spoke about, are the key ingredients for the Mondelez success. The quality of RGP thinking, the analytics and the team. We will consistently apply these on all the Mondelez brands, and come up with relevant solutions. Our singular focus is how we can help Mondelez achieve growth. Additionally you will also see more and more creative media solutions to solve marketing problems.
In an interview early this year, your Global CEO Tim Castree said he was eyeing a growth of more than 13% in India. Have you been able to reach the number or have you exceeded it?
We have seen healthy growth this year. Our new business wins should give you a sense of growth that we are witnessing and are hopeful of achieving our targets.
How according to you has media business evolved over the years? What are the areas where you feel the need for growth/change?
I think the media business constantly keeps evolving, and the evolution largely comes on three fronts: the way the consumer choices keep evolving, the way media and technology is evolving and lastly the evolving agency eco-system. All of them go hand-in-hand. Consumers today are exposed to a lot of technological changes which have practically taken over our lives. A well-known case in point is the mobile revolution. The mobile is no longer a device for communicating, the mobile is also a computer replacing laptops and tablets. And that has really revolutionised the way in which we consume media.
From the consumer side, India is becoming a stronger, younger country, in terms of being able to add to the GDP, the Indian awareness about things around them has really increased exponentially. This is a younger India with more knowledge, hungrier to do new things, and more willing to experiment. This has an impact on marketing as a whole.
From the media side global media changes are felt locally too. India now is a separate topic for many global media companies due to the sheer size and opportunity India offers. Indians are as aware of any of our global counterparts and are also expecting more from media brands. India by and large is a value driven market therefore media owners have to customise their offerings to appeal to that need without compromising on quality.
Lastly from the agency side, the big question is around talent. How do we find the right mix of diverse talent? I believe diversity in talent is going to be critical for organisations to grow. This can be achieved when leaders can articulate the right purpose.
Another area agencies need to focus on is automation. Our industry has been fairly under indexed is the area. The default mode to think is more people. While people are the brain behind agencies there are many repetitive tasks which require automation and deploying relevant technologies will unlock value.
As an industry veteran, how do you think we can tackle the issue of clients switching agencies every few years leading to shrinking margins?
I think clients are under tremendous pressure to deliver both on the top line and bottom line. For many of them marketing budget is a big cost item and they tend to use pitches as a shortcut to see if they can get some quick efficiencies. While this has been the trend until recently I am seeing a lot of progressive clients have realised that getting lower prices is not the only goal. These clients are looking for strategic advice, integrated communication solutions, creativity and so on. Many of our recent wins have all happened at the back of quality of recommendations and much less over prices. If clients were to conduct pitches regularly they will lose out more than they gain as fear of losing the business is not a great motivation for anybody to give their best. Clients are realising this and I am optimistic that we will see some changes quickly.
Where have agencies failed in delivering to the clients?
Agencies fail when they don’t invest in the right areas and nurture their people. As I mentioned earlier a large chunk of the agency’s success comes at the back of the quality of people. Agencies which throw in lot of money to attract talent without investments in the relevant areas and not setting the “right purpose” for the agency eventually struggle. It is also critical to set the right values. At Wavemaker we value people who are PACED. PACED is our articulation of what we value and stands for Passionate, Agile, Collaborative, Entrepreneurial and Diverse. People who exhibit these values do very well.
Agencies also fail when they are desperate to get business at any cost. Many of the pitches with cost efficiency as the singular focus are testimony of this. Many agencies which have gone down this path have not only struggled to deliver prices but in the bargain have put so much pressure on themselves and their own teams that it is not a sustainable situation. Something will give away eventually and clients too need to recognise this.
What are your big plans for Wavemaker in its second year?
More than big plans, I think we are on a fantastic journey of building a great business. We will continue with that journey, so the focus is always how do we give our teams a great career and how do we help our clients grow big. These two mottos go hand-in-hand. It is a journey that will continue for a very long time and that is what we are focussed on.
Associate Editor, exchange4media, Mumbai As the editorial head for the website, Naziya covers media, advertising and marketing domains. Prior to joining the digital domain, she worked for 12 years with leading newspapers covering political, legal and crime beats.
Asheesh Sharma of Agro Tech Foods Ltd on launching new cereal, Choco Popz
Sundrop has launched a new cereal, Choco Popz, - a product that is positioned as an ‘ideal all-day snack’. Asheesh Sharma, Vice President – Marketing, at Agro Tech Foods Ltd gives us the insight behind this product, the upcoming pipeline of products, which will see the company have a broader presence in the Cereals portfolio and Sweet snacks segment, and why Agro Tech expects to grow its foods business by 25-30% on an annual business. Excerpts:
What was the insight behind entering the Breakfast Cereals and the Chocolates categories, a segment that is already over-crowded?
While the breakfast cereal category is over-crowded, the centre-filled cereal category is just starting to grow. Sundrop Choco Popz is a multigrain product with a dark chocolatey centre with a focus on delighting consumers with its superior offering. The product Sundrop Choco Popz is a cereal, which can be had as either a breakfast or even a snack option. There are few inclinations, which are driving the growth of the snacks market in India. Increased health consciousness, especially in the metros and Tier I cities, has led to consumers having smaller portions through the day and more frequently. While breakfast, lunch and dinner are still prevalent, new short meals like pre-breakfast, pre-lunch, pre-evening, pre-dinner and an after-dinner are becoming a trend. As per a study conducted, pre-lunch snack is said to be the preferred meal among youngsters, on-the-go professionals and kids. Capitalizing on the trends and prevailing consumption patterns, the idea was to launch a product that can satisfy the Indian sweet palette and is yet healthy enough to make for a guilt free bite.
Why did you choose to enter this space with a cereal, Choco Popz? How did you arrive at the price-point?
We already have our presence in the snacks market – sweet snacks market is still not a big category and has a huge potential to grow with the right proposition. Our entry in the sweet snacks market with Choco popz is with a healthy yet indulgent offering to tap the bigger consumer market and open new consumption occasions.
Sweet snacks prevalently as a category was operational in higher price points only while savoury snacks starts from Rs.5/Rs.10 price points. To cater to the mass pool of the snacks market we have launched at value offering of Rs.10 price point for low pricing barrier on trials. Our Rs.60 pack for 140g is for our regular consumers, it is a re-sealable pack for easy storing/multiple consumption pack.
What is the TG that you are looking at?
Teenagers and Young adults are our primary TG for the product. The dark chocolatey burst that one gets will be the biggest attraction of our product. The multigrain shell is a healthy add-on and hence a healthy yet indulgent offering that this TG will be happy to eat without the baggage of unhealthy indulgence.
What is the marketing strategy that you are looking at? What is the media and which will be the lead medium?
We have a plan to advertise through mass media as well as digitally. We also have extensive plans to create awareness amongst consumers through in-shop activations and product trials.
What is the growth that Agro Tech Foods has seen over the last year, in terms of sales and revenues?
ATFL, over a period of last few years, has seen a great growth in the foods business. We have grown our foods business by around 20% year on year. With the launch of Choco Popz and through our innovation pipeline starting with chocolate, we expect to grow our foods business by 25-30% on an annual basis.
Looking ahead, what can we expect from Agro Tech Foods…more product launches in the offing?
Definitely, we have a huge innovation pipeline for the coming years. You will start to see our broader presence in the Cereals portfolio and Sweet snacks segment. We are also going to enter the chocolate category with our new launches.
After mavericks like CVL Srinivas and Raj Nayak, who will win the Influencer of the Year in 2018? The event is scheduled to take place on November 16 post exchange4media Conclave
The exchange4media Group, a pioneer in the business of media, marketing, and advertising news and developments, is gearing up for their flagship event – the exchange4media Conclave. The 16th edition of the event is scheduled to take place on November 16 in Mumbai and will follow the theme of ‘Marketer and Machine: How will AI transform marketing?’
The media and marketing industry is filled with mavericks who have demonstrated vision and leadership over several years. Beginning in 2016, the exchange4media group initiated the Influencer of the Year award, which honours visionaries who have transformed the industry and inspired the next level of growth while progressively using innovative technology for business achievements. Some of our past winners were:
Winner Year 2017
CVL Srinivas, Country Manager, WPP
Srinivas has been a guiding force in the media industry for decades now. His life in advertising began at Lintas, Bengaluru, where he worked on brands like Brooke Bond and Lipton. From Lintas, he moved to HTA (Hindustan Thompson Associates, now J. Walter Thompson) where he was part of the startup team that came together to form Fulcrum - the dedicated media planning and buying team for Hindustan Unilever Limited in 1995. His efforts to set up Fulcrum, now, Mindshare Fulcrum has been one of his biggest contributions to the advertising fraternity.
During his stint at GroupM, he built a reputation as an astute observer of the media and advertising industry since 2013. He was also instrumental in setting up Maxus in India before expanding it to APAC. Under his leadership, GroupM witnessed a healthy growth and consolidated its position as the leading media agency in the country. GroupM witnessed a growth of 35 per cent from 2014 to get a billing of $ 4558 million in 2015 according to a study by Paris-based Research Company Evaluating Media Agencies (RECMA). The company’s market share grew from 39.5 per cent to 45 per cent under Srinivas.
During his career spanning over 20 years, Srinivas has worked with other leading media agencies in India like Starcom MediaVest and Madison World managing clients such as Coca-Cola, Cadbury’s, Vodafone, Samsung, Nokia, Perfetti to name a few.
Winner Year 2016
Raj Nayak, COO, Viacom18
Nayak is known for his creative and business acumen having steered Viacom 18 flagship brand Colors to the leadership position as its CEO for over seven years. During this period, he is known to have taken bold decisions and greenlit some of the biggest cutting-edge shows on Indian television like the Indian version of the Hollywood blockbuster ‘24’, The first scripted fiction show –Amna Samna, Madhubala, Udaan, Ashoka, Shakti, Naagin, The Anupam Kher Show, Mission Sapne, Rising Star (India’s first LIVE interactive reality show), The Golden Petal Awards, The Indian Television Awards, The Colors Stardust Awards, IIFA, and the Filmfare Awards.
A media maverick, he has a good insight into the changing consumer behaviour and combines it with business objectives. He is known to have turned around the fortunes of several media companies in his 25-year-long career in the television industry. He was recently entrusted with the entire revenue management for the Viacom18 group as its Chief Operating Officer.
Before joining Viacom18, Nayak formed Aidem Ventures, an independent media consulting and sales & marketing company. Prior to forming his own venture Nayak was CEO of NDTV Media Limited for a period of over seven years. He was the founding member of the STAR TV Group in India, where he spent close to 10 years. As Executive Vice President, Sales & Marketing and was responsible for strategy, packaging and marketing for all STAR channels as also the revenue for the group. He was part of the Mancom and also STAR TV nominee on the Board of Vijay TV and erstwhile Indya.com
Attend e4m's Conclave to know who will be the Influencer of the Year 2018. For details, click here: https://e4mevents.com/conclave-mumbai-2018/