SUBU THINKS ...

The official version: We collaborate or else.

2011-11-28T20:25:00.001+08:00

Collaborate or else: The future of creativity in a consumer broadcast world.

2011-11-28T20:18:00.001+08:00

REVOLUTION

It’s circa 2012. The world has changed, again. Along withthe Recession, the Arab Spring and the iPad, there is another revolution underway.

An entire generation of empowered audiences is muscling its wayinto the hallowed chambers of marketing. They are a generation born into smartphones and tablets, a generation that instinctively believes in the two-waysocial conversation, and most importantly, an increasingly digitally distractedand time poor audience.

The reaction to this revolution from the marketing andcommunications community has been on two diametrically opposing lines. Onecontinues to insist on the primacy of the mass-media led creative idea. Thesecond abdicates all responsibility and talks about ‘crowd-sourced’ creativity.Needless to say, there is an increasing realization that both these extreme perspectivesare flawed.

CONTAGION

We, at Ogilvy, know that infectious content needs acontagion of a brilliant idea. We understand that these are not opposing forcesbut, in fact, they complement each other. Indeed, to us, the most effectivecommunication strategies now embrace the chaos between function and form. Itstrikes us that the best ideas now have an unstructured shape that enjoys thefreedom to evolve and change as they connect and collaborate with consumers.

We are curious about deciphering which ideas have the capability to beadopted and broadcast by consumers. This iswhy we are investing our creative energies behind the understanding anddesigning of the idea contagion.

DISCOVERY

We have had a couple ofbig and ‘retrospectively self-evident’ discoveries on this journey.

Firstly, as wellarticulated by Katja Bressette in ‘Deeply understanding the mind to unmask theinner human’, we are not dealing with the homo economicus - the rational humanbeing who makes decisions purely based on reason, but with the “homo emoticus”– the emotional human being.

Secondly, the brainexpends only 2 percent of its energy on conscious activity, with the restdevoted largely to unconscious processing. Thus, traditional market research methods— like consumer surveys and focus groups — are inherently found lacking insifting the brilliant creative ideas from the average ones, because theparticipants can never articulate the unconscious impressions that whet theirappetites for certain products.

These two discoveries implythat we have to fundamentally re-think our creative process. For reallycontagious ideas, we need to engage with the emotional subconscious in ourconsumers. And we need to find new ways of collaborating with consumers tounderstand what they really want.

BREAKTHROUGH

Introducing Neuroscience.It is more than just a new-fangled research methodology. It gives us theability to directly talk to the brain, the seat of all our emotional impulses,to decipher how consumers feel. Crucially, neuroscience allows us to unearthpowerful insights into people's thoughts and feelings, insights that marketerscan then use to develop accurate communication strategies that resonate withinour consumers' minds.

Neuroscience^* hasthe capability to define the future of marketing - it is unlocking the power ofemotions and changing the way we listen, converse, persuade, engage and sell.

For starters, instead ofsearching for the next product feature or selling point, we seek to understand theemotional spaces evoked by the product in consumers’ subconscious. By usingneuroscience techniques like fMRI^* or Implicit Associations^*,we can unearth the fundamental motivations addressed by the category, product orbrand.

An illustration of this –diet foods are not really about slimming down, but about insecurity. Suchinsights help create ideas that target these primal motivations rather thansuperficial features. Needless to say, such ideas also have a head start onconsumer broadcast.

Secondly, we useneuroscience techniques to sift out our best creative ideas. Neurosciencetechniques like EEG^* help us get a quick and direct evaluation ofthe subconscious impact of our most audacious ideas.

This is a radicallyimproved method over conventional focus groups. When asked outright in surveysand groups, consumers will provide answers, of course, but those answers may beincomplete at best and quite misleading at worst.

As David Ogilvy said “Thetrouble with market research is that consumers don’t think how they feel, theydon’t say what they think, and they don’t do what they say” Much to our relieftoday, neuroscience helps us directly understand how consumers feel rather thango through the say-think-feel enigma.

Last, but not the least,we can use Neuroscience methods to refine and fine-tune our final creativeproduct. Eye tracking^* methods help understand the specific frames, withinthe creative product, that are driving or detracting consumer attention. Armedwith such knowledge, creative directors can optimize their creative product formaximum impact.

FUTURE, UNLOCKED

The revolution will forcea new dawn upon all of us. We see neuroscience as an integral part of this promisingfuture.

In the not-too-distantfuture, the creative director will co-create a contagion of an idea. This willbe an idea created in collaboration with the subconscious of the consumer,something that naturally has the potency to be virally shared betweenconsumers.

Inception is here. Can youafford to ignore it?

The contracting niche of luxury marketing

2011-07-26T00:51:00.000+08:00

Something rather expected is happening in Hong Kong. The culture of new affluence is pushing the traditionally rich into a corner.

Many luxury studies across the Asia Pacific tell us that the ‘premium’ consumer continues to look for more of what originally drove luxury brands – exclusivity, rarity, uncompromising attention to detail, appeal to a personal aesthetic and an emotional fulfillment. And the combination of all these factors results in consumer value (obviously, at a much higher price point).

However, this is different from the newly affluent consumers who want to signal that they have arrived. No wonder, they yearn for a conspicuous and loud label. It is crucial to remember that these mass prestige consumers also demand that luxury brands like Louis Vuitton continue to be a source of envy to the millions who cannot afford them.

It is indeed paradoxical that these newly affluent consumers, in the luxury brands they consume, seek brand conformity and acceptance by the traditionally rich consumers. While the very same traditionally rich consumers are moving on to a more rarefied and exclusive set of products and brands.

How are luxury brands reacting to resolve this contradiction?

The ‘dyed-in-the-wool’ family held, heritage luxury brand just thumbs its nose in disdain at this noise.

For the more pragmatic (market listed?), a variant becomes an inevitable strategy. This helps the manager retain the exclusivity to attract the uber-premium consumer. While, at the same time, the variant helps the manager make the brand slightly more accessible to the mass prestige consumer. A good example of this is the relationship between Armani and Armani Exchange (AIX). The use of discounts and sales only on the mass prestige variant is a further fine-tuning of this strategy. When following a variant strategy, most brands manage careful segregation of retail and design spaces with only some hints of the relationship between the variants.

Either way, maintaining brand equity of the true luxury brand in the face of these advancing hordes of newly affluent mass premium consumers has spawned a whole new set of strategies.

Limiting the supply and using price as an indicator are some evergreen marketing tactics for niche luxury products.

Some new tactics include increased usage of corporate social responsibility (CSR) and ecology initiatives to appeal to the affluent conscience. The auction of a vintage 1958 Jaeger-LeCoultre Model E168 watch to benefit the UNESCO World Heritage Centre is an example of such CSR.

Crucially, the luxury brand lives in the store. (No surprise then, that demand for truly premium retail locations is sky-rocketing). Take a look at the Nespresso Boutiques – and how it welcomes coffee lovers into the espresso world. And this is why luxury marketers are increasing investments to convert retail into tasteful “experience zones” where the brand can be experienced at its very best.

Lastly, in the hyper-competitive world of luxury brands, front line staff may well become (if not so already) the most crucial reason for consumers to keep coming back to the brand. As in private banking, expect personal relationship managers at the store. These people customize your store experience, or indeed, bring the store to your home.

In sum, expect luxury to become even more niche, private and discreet while its louder mass premium cousin mops up volumes from the newly affluent. Who is here by invitation? Any body?

Aligned disruption: The quest for a differentiated proposition

2011-01-13T16:17:00.001+08:00

Aligned disruption

View more documents from sub_maya_hai.

Essay on Digital Influence wins a certificate

2010-03-03T11:24:00.004+08:00

Here is a copy of the final entry that made a certificate of commendation from the jury.

AA wants the facts and asks "Certificate from whom?"

SN fuses the past and the future to say "Subbu... I have always maintained that entertainment is at the core of marketing. A well made ad is entertaining, a well written ad is entertaining, a well-told product story is entertaining. Unfortunately, marketers have always approached the consumer like a slimy tout/pimp -- one look at the marketer and the consumer knows that the marketer has an eye on the consumer's purse. Marketers have a lot to learn from people like street magicians and other street entertainers. The magician/entertainer first entertains people, then passes the hat around. It's never the other way round. Borrowing another "street example", marketers could do well learning a simple trick from the street vendor who uses the most powerful line in marketing -- "aaiye aur dekhiye... dekhne ka paisa nahin". The street vendor invites the consumer to sample his fare without making any financial commitments. That's how he allays intrinsic fear and distrust in consumers. Marketers have rarely been able to do that.... Net-net, good review. My fear is that most marketers are so busy looking for a seat at the table where they are not wanted that they won't have the time and inclination to pause and think about what you've said...

RS proposes "Subbu, the article is easier to read in your blog (http://subuthinks.blogspot.com/) than in Slideshare. You should share that blog link on Facebook"

SS congratulates me with a pithy "Well done, Subu"

NG recommends "Subbu, all we marketers need to do is tell a story. it is the stories that are engrossing, engaging and make the teller look good. When we hear a good story we want to tell the world. It is stories that have spread the myth and mystique of enduring brands. May be your next can be on how tell a tell a good story"

SG adds to the narrative "Good stuff:)Also feel entertainment has always been around in some form on radio and tv. there is something uniquely infectious and lateral minded about the entertainment in the digital space. the medium is the message."

KS asks another question "Congrats, Subbu! This in turn raises another question. Do marketers, steeped as they are in their own products and services have the bandwidth to also market their communication programs. Think it was Naomi Klein who said that Nilke really sells the software (read ads) and the footwear is incidental. How many marketers would be comfortable with that paradigm?"

OF is tempted "Subu, curious to read it, but couldn't access it. any alternative way to get the essay? Cheers and congrats."
RS tells OF to check http://subuthinks.blogspot.com/.
OF thanks RS Tks, I got it.
And then says "Krishnan-san, it is brilliant, I've made copies to a lot of people here, as we had a intense discussion on this subject yesterday. Tks! How's the Portuguese coming? All the best to you"

SS (not the one above) remarks "I knew it..yeh to hona hi tha...your are the best!"

SN (the eternal fact machine) queries "Nice thought process. The final aim of all types of promotion is sales and only sales. The bottom line is measured, evaluated and rewarded on basis sales and all marketing is supporting this objective. However if the intent is entertainment with product embedded.....and this approach doesn't lead to direct increase in sales, is this effective. How will the result be measured."

GS postulates "Great essay subu. sooner the marketers loose their insecurities sooner their brands will have a public life."

And the essay continues ...

On the evolution of digital influence and related phenomena

2010-01-12T13:30:00.004+08:00

Every marketer wants to influence people to think favorably about his brand (in the hope that this favorable thinking will ultimately convert into purchase). In an earlier age, this influence was through advertising on mass media. This influence now seeks to transition to digital forums. And the reason is simple – the viewers have moved on … to digital networks!

The various tools of direct digital influence at the disposal of brands are being well documented. They are a whole new vocabulary - twitter, social networking, peer-to-peer, blogs, social media eco-system etc. Many brands have been experimenting with digital influence in spurts and starts. And then there are those in the majority, who still find this new language to be both intimidating and bewildering. The net impact - marketers are still struggling to find a seat on the table full of consumers chatting with each other, forming opinions and making up their minds.

There is a deeper issue beyond just being unable to find a seat. The very idea that conversations between two people (and the choices they make) can somehow be curated, molded, controlled or influenced assumes that consumers are inviting the marketer into the conversation. And this may well be a fallacy.

Convention dictates that, from here on, this should now become yet-another-article that spouts venom on all that is wrong with the old way of marketing, argue for a new paradigm shift, sprinkle a new, new list of incomprehensible jargon and pretend to have created a new magic mantra (the book rights follow!).

In the firm belief that yesterday’s language can only result in yesterday’s solutions, this article posits an alternative. Rather than asking how ‘conventional’ marketing can digitally influence consumers, it re-frames the problem – What is the role of marketing in a digitally consumer-networked world?

A response to this question is a brave new hypothesis: Marketing is the creation of ‘contagious’ entertainment with embedded product placement.

Once created and sent out into the world, this entertainment will have a life of its own. It will be shared, mashed, re-mixed, responded, commented, digged, tweeted, uploaded, copied, mocked, criticized … by people to other people.

There, the genie is out of the bottle! One of the first likely criticisms of this definition would be that it sidesteps the core function of marketing i.e. satisfying consumer needs and wants in mutually beneficial ways.

The author’s argument to this is that there are no ‘new’ fundamental needs or wants. The source-code for marketing today is a series of product innovations that advance (value-add) pre-existing solutions on some dimension. In most cases, these innovations hasten the solution, simplify it, multi-function it or make it more elegant in design terms. These innovations, but naturally, creates new desire in the consumer to upgrade.

Said in other words, people do not need to be informed about how their needs can be fulfilled. They have the smarts to figure out what they need and the available competing choices that accomplish it. This is further compounded by aisle shopping in supermarkets and online search. However, in this choice-driven world, they gravitate towards (or upgrade to) some choices rather than others because these choices fulfill some ‘new’ desire.

New desire may be under-pinned by the innovative product but, crucially, it is magnified by the ‘crowd’. New desire is driven by what ‘other’ people think. And the crowd only transmits what it thinks is ‘entertaining’ to the rest of the crowd!

So, here is the new algorithm:
Marketing = f (Creating new desire) = Product innovation powered by Entertainment

Lest this be construed as confusing, in simpler language, marketing is the creation of entertainment with embedded products with the end goal of creating new desire. Call marketing the new movie producers, if you may. Reminds you of how P&G pioneered tele-serials in America? Well, it is back to the future, but with three big differences …

Difference #1: In today’s age, we need to ensure that the created entertainment is truly medium agnostic, i.e. ensure that the same content gets transmitted over multiple mediums like film, television, video, gaming, ringtones, events, merchandise, V-O-D etc. Being more medium-agnostic directly translates to more reach of your entertainment. Read more on this here.

Difference #2: In today’s age, we need to integrate the entertainment with the shopping experience to complete the consumption circle. Ride the new trend in convergence where offline media and online content converge with out-of-home shopping spaces. Create that shopping cart symbol in every medium. Read more on this here.

Difference #3: In today’s age, we need to encourage and catalyze consumer experimentation with created entertainment – Support consumers to be co-owners of the original entertainment itself. Use collaboration (rather than one way monologue) as a mantra to connect with the attention deficient consumer. Read more on this here.

The biggest implication of these three rules is that every brand will need an entertainment strategy that sits on top of all the component parts viz. digital strategy, offline media strategy, in-shop strategy etc.

In sum, we would be better off discussing digital creation rather than digital influence. Face it, people prefer listening to other consumers (and now they can!). An attempt to digitally ‘influence’ a conversation is fast becoming irrelevant in this rapidly empowered and networked consumer society. Marketing needs to grow from the traditional confines of product benefits. It needs to re-define itself as an entertainment creator. This makes the crowd to become a marketer and fuel the creation of new desire. Some handy navigation rules in the creation of this entertainment are to keep it medium agnostic, integrate it with the shopping experience and encourage consumer co-creation.

Time to love this recession

2009-02-16T15:00:00.004+08:00

At its worst, this post can make convert a lot of my friends into enemies. And yet the ancient adage of ‘nothing ventured, nothing gained’ encourages me to write on …

Recessions are good for the advertising industry because they force us to chase creative effectiveness rather than creative efficiency.

It is only appropriate to start from the point - what is creative efficiency and creative effectiveness, and how are the two any different?

Creative efficiency is the capability of the communication to be comprehended (either by its specific audience or across all audiences). In other words, creative inefficiency is the loss in the black box between stimulus and response. If you decode and comprehend all that I wish to tell you, then the black box loss is zero. But that is rarely true!

Creative efficiency is decided by the context in which the communication is placed. This context is mostly the socio-cultural zeitgeist, but could also be more individualistic in the frame-of-mind of the person at that given moment.

Creative effectiveness, on the other hand, is the capability of the communication to arouse its specific audience (to think something) in a way that gets them to act (desired behaviour). And this makes it a much more tricky matter.

Creative effectiveness depends on the big ‘I’ - the quality of insight one has into the audience. Some argue that the best insights are relevant, fresh and contemporary. But then, some insights are universal and timeless.

It would be safe to say that, there will always be some loss between comprehension (efficiency) and motivation to act (effectiveness). The lesser this loss, the more successful the messaging. Which is why, I guess, planners still have a job because on their shoulders is the tricky job of predicting which insight will minimize this loss.

Unfortunately, most of my creative friends chase creative efficiency while marketers expect creative effectiveness. I dread the poor planner, who is expected to straddle the two worlds.

Seen through this frame, categories where creative efficiency and creative effectiveness merge (for example – beverages, confectionary and beer!), see the most bonding between creative and client.

One can see a sharp contrast in categories where creative efficiency and creative effectiveness are the most apart (for example – toilet cleaners, computers and departmental stores!) No creative person (worth his salt) wants to touch these categories with a barge pole.

The power of a good recession lies in that most categories begin to seek more than just awareness and clutter break-through. Traditionally efficiency driven categories start clamoring for effectiveness. To justify marketing dollars, everybody demands demonstrable results.

The other side of the 'recession' problem is an opportunity to respond to the need of the hour with more than just cosmetic cost cuts and lip service to integrated communications. Now is the time for us, the advertising industry, to re-invent ourselves around creative effectiveness.

Change was a freight train till it got some rocket boosters last quarter. High time, we all start loving this recession.

This is Singapore, lahhh ...

2008-12-14T18:50:00.006+08:00

This is my last weekend as a resident in Singapore. And it has been a fascinating discovery because (unlike a tourist) when you are an insider – you get to see and experience a unique culture made up of quirks, warts, funnies and all. So, here is a list of what I felt was Uniquely Singapore … IN NO PARTICULAR ORDER OF PRIORITY, YOU KNOW IT’S SINGAPORE WHEN …

1. All you need to do to become a local is end sentences with a drawl and a ‘Lah’.

2. Cyclists practice their sport in the middle of the night to avoid getting run over.

3. The government offers a step-up monetary incentive to reverse a declining local population.

4. Your luggage arrives on the conveyor belt before you can clear immigration.

5. A departmental store called Mustafa becomes a national landmark.

6. Cab drivers postulate expertly on the state of the economy.

7. The pursuit of money is a national passion.

8. Celebrations are fabricated as an excuse for more shopping.

9. There are queues of impatient women outside the Louis Vuitton shop.

10. Firecrackers and chewing gum are seen as national hazards.

11. An empty Speaker’s Corner is seen as an evidence of a thriving and happy democracy.

12. Everyone (including the concierge) wants to know the state of your business.

13. Discount-mongers are preferred to gossip-mongers.

14. The streets are cleaned by vacuum cleaners.

15. Government housing is allocated on the basis of fixed ratios to encourage racial harmony.

16. One terrorist escapes the jail and a whole country gets pulverized.

17. A well equipped Air Force feels fulfilled doing aerial acrobatics in the national day parade.

18. The national library promotes the cause of literature by stocking up on the latest comics.

19. Toll tax or ERP is sarcastically referred to as ‘Every Road Pays’.

20. The met department has a different weather forecast for every one of the five zones of this 700 sq.km. City State.

21. The clock is set an hour ahead of the scientifically predicted standard time zone to be aligned to China time.

22. Seats in busy food courts are reserved (local lingo: ‘choped’) with a packet of Watsons tissue paper.

23. Four out of ten citizens marry a foreigner – contributing further to a rojak (mixed-up) society.

24. Every major community has a free-to-air channel exclusively dedicated to their own content.

25. Its Prime Minister gets five times (!) the pay of the United States President to prevent him from becoming corrupt.

Just in case you have noticed something I have not, please do add to the list and contribute to this noble (and non-profit) movement to decode the Singaporean culture.

Humpty Dumpty sat on a wall …

2008-11-29T01:34:00.004+08:00

But then, Humpty Dumpty had a great fall. And, as we only know too well, all the king's horses and all the king's men couldn't put Humpty together again. Leading sociologists have alluded that this could be attributed to Humpty’s obesity and bad BMI!

But then I am drifting from the original reason for this post. Firstly, a little flashback for those among us who loathed history classes. In the beginning, there was local business. And then, in the 80’s, it became regional business. Somewhere in the mid 90’s, it was fashionable to become glocal (global + local). But that was just a transitory phase before business truly became global. In this rather rapid journey over the last three decades, Humpty (a.k.a. business) well and truly became obese and lost all local bearings. And now that Humpty is falling like nine pins, it seems (sadly) pre-ordained that all the king's men cannot put Humpty together again.

So then, is there merit in going “back” to the local model of doing business? (albeit re-engineered to suit today’s environment – so that the forward thinkers lobby is not offended at the very thought)

For one, local means that businesses strategize to primarily fulfill demands of their local catchment rather than the profit ratios of their global behemoth. Local also promotes ‘self sufficiency’ rather than hiding inefficiency behind the consolidated balance sheet. Good for the customer and great for the economy. Wow!

The skeptic would argue that this localization would only stifle innovation and cross-fertilization of ideas. On the contrary, the author proposes that innovation would be catalyzed by the co-operative ingenuity and creativity of local enterprise rather than the scale and capital of global corporations.

For all those who say aye, the way forward would be to co-opt the local model into the global way of doing business to suit today’s environment. One among several possible alternatives could be the creation of an ecosystem where independent local businesses participate in a global holding company stock exchange. Purely as an illustration, imagine a global Unilever stock exchange (USE?) where every Unilever country unit gets traded on the merits of its own balance sheet.

Such innovative business models would become the way of the future where local businesses are the engine for driving global businesses (rather than the other way around).

In a nutshell, this post urges Sir Humpty to lose some serious weight around the belly. And if that is not going to be possible, in the very least, he should not be sitting on any walls!

The day Mr.Bond blinked

2008-11-20T15:57:00.003+08:00

Despite warnings from friends and well wishers, I purchased a ticket to watch Quantum of Solace. And I was utterly distressed at the end of the event.

How can one imagine Bond with no gadgets, cars that are only driven (how boring!) and no besotted women in various stages of undress. Heavens forbid - they even managed to bleed Bond and stain his rather crumpled shirt in this one. The James Bond we know could be beaten, punched, tortured and kicked but his shirt never crumpled and he never ever bled. And I particularly love this characterization by the Rolling Stone magazine – “Bond seems to have come down with a serious case of Jason Bourne penis envy”

So, I am forced to subscribe to the majority point of view – It’s a great movie, but it’s not Bond. And I could not but help think that this is how great brands come undone and ultimately cast aside in the sands of time.

The challenge in front of brand manager and the 007 scriptwriter is exactly the same - How does one keep the story contemporary while being authentic to soul of the hero? Seen from another lens, how does one satisfy both the die-hard loyalist and the new-age flirter – each with differing expectations?

Well, here are two possible pointers to address this challenge (from yours truly) …

1. To have a strong, passionate and singular custodianship of the brand so that brand consequence is not sacrificed at the altar of creative impact.

I shudder to think of what the late Mr. Albert R. Broccoli would have thought of Mr. Bond’s latest adventure. To use an oft used cliché, there needs to be a single person who lives and breathes the brand. And this person then serves to be the arbiter of what is ‘on’ brand and what is not. In the absence of this person, a sub optimal solution would be to get all constituents to owe allegiance and to uphold a richly articulated brand charter.

2. Patience as a necessary and essential requirement because brand refurbishment is a series of infinitesimal tweaks rather than one fell swoop.

Dramatic change always seduces and tempts with the dangle of instant recognition, but it also disassociates from the responsibility towards its current franchise. One should always experiment with the peripheral symbols of the brand, but never tamper with its core. This experimentation with the peripheral symbols ensures that the brands cache is current and contemporary, while its unchanging core ensures timelessness. Tobacco and alcohol brands seem to have cracked this code rather well.

I do hope these two pointers help the 007 scriptwriters re-discover the quintessential Bond. I will have a drink on that. A martini please - shaken, not stirred.

An antidote to mediocrity

2008-11-06T12:11:00.003+08:00

I have been visiting (more than) a couple of blog sites for some snooping and learning on how to get on to the ‘blogwagon’.

Some top-line learning – Firstly, everybody seems to use a chatty and informal style in their writing. Secondly, visual relief is important. And lastly, but most critically, any ‘heavy-duty’ theoretical stuff needs to be given a wide berth. Fellow blogger http://www.adliterate.com/ writes “… in a 2.0 world where you should always be in Beta test, the whole point is to share half thought through thinking”

This set me thinking – Is there space in the blogosphere for some serious discourse? Or does constant blogging for a higher search rating (read more adsense dollars) make all of us guilty of the ‘sameness’ affliction? Does one ‘have’ to follow the rules of the chatty, visual and half thought in any virtual conversation? And at the root of all, if one says yes to this blog convention, isn’t one simultaneously saying no to individuality and experimentation?

At a more fundamental level, the idea of ‘following rules’ is not new to us. We all know of a world of marketers who dare not break the so called unwritten rules or category conventions. Two examples (one ironic and the second alarming) – Example#1: One of the world’s oldest marketing challenges is to create a feminine brand that is not white or pink in colour. Example#2: the recent Peirce Brosnan ad for L’Oreal (for men) that claims that “you are worth it”. Anyone who knows the genesis of the line as a representation of feminine libertarian values wonders how the same could possible apply to men!

My proposition for the day – Rules and conventions, without the counter-balancing force of rebellion, ultimately lead to mediocrity. The friction between the establishment and the anti-establishment is the source code for any practical innovation. And this conflict is the most potent antidote to mediocrity.

The contrarian Naysayer is just as important as the ‘around-here-this-is-the-way-we-do-things’ Rulebook. For every Red Coke, we need a Blue Pepsi. For every conservative Republican, we need a liberal Democrat. For the notion of German efficiency, we need some Dutch madness. And for every chatty, visual, lowest denominator blog, we need the serious, experimentative, knowledge advancing blog too.

And yes, we have to constantly guard ourselves against the day when the anti-rule becomes the rule itself!

> acquaintances, but < friends

2008-10-28T14:17:00.012+08:00

The world became more complicated yesterday. Till day before yesterday, we could actually segregate friends and acquaintances. But since yesterday, we are finding it difficult to distinguish between the two.

Notice how we now have a large number of “contacts” on social networks who are more than an acquaintance, but definitely less than a friend. An unintended consequence of this is that we now qualify friends as close friends, hence making ‘friend’ to be a synonym for mere acquaintances.

Why yesterday? Because it was yesterday when it was observed that traditional "Deepavali" greetings evolved to becoming just a status update on people’s Facebook profiles! This evolution has undertaken a rather short journey from hand written greeting cards to phone calls to emails to mobile SMS to now this – a status update. In days of yore, friends deserved a personal greeting (a box of sweets, a phone call or even dropping in for a chat) while acquaintances had to do with a mere greeting card. But now we have become so impersonal that everyone (except maybe for the very select inner circle) has to do with a status update.

As we become more impersonal (as in the status update greetings above), lines between friends and acquaintances start blurring and we do not distinguish between them in our interpersonal behaviors.

This naturally gives rise to a new category – the FRICQUAINT™ (FRIend + aCCQUAINTance: not to be confused with ‘frequent’). Fricquaints are people whom we know more about than traditional acquaintances because of voyeuristic (?) purveying of their online profiles, but would be loathe meeting in an informal offline world like a traditional friend.

How will this rise of the Fricquaint change us and our society?

For one, it can be hypothesized that we will be more networked but equally less connected with fellow human beings. It will also be safe to assume that we would be surrounded by network noise and yet feel lonelier than ever before. Thirdly, we would become so dependent on mediating technologies to connect with other human beings that we would forget the art of “reaching across the aisle”

Welcome to a socially inhibited world. Too extreme to become a reality? For once, I sincerely hope so too.

The entertainment trilogy - Macrotrend Three

2008-10-22T04:08:00.005+08:00

Macrotrend #3: Entertainment power-shift - Producer consumer collaboration as version 2.0 of consumer generated content

New forms of collaboration between producers and consumers are emerging in the digital entertainment space across music, gaming and filmed entertainment. And these are best described as 'mash-ups'

Being creative and curious, youth are at the leading edge of this entertainment co-creation, exploration and adoption. Mix tapes, re-mixes, spoofs, editing with photography and videography and several other such activities have already been driving the explosion of the co-creation trend.

This is now being taken to the next level where the consumer is encouraged to be a co-owner of the original creation itself.

Example:

Spore – a recent video game launched by Electronic Arts has a Spore Creature creator, allowing users to create their creature and play with the customization the game allows. The Creature Creator also serves a deeper purpose – the creation of the Spore universe. In the final game release, users will create their creature and begin playing only to find that their planet – as well as various on the Spore universe – is also populated by rival creatures. These rival creatures are none other than the creatures created by the users via the Creature Creator and the final game itself.

In a very different way, Carat Media co-opted children to write and animate the story and adventures of Prince (for Danone) before converting the same stories into a full length feature film and television content.

Implications –

Encouraging and catalyzing experimentation will become a rule for survival in the entertainment business

Collaboration (rather than one way monologue) will become the mantra to connect with the attention deficient consumer

For the other two macro-trends, just scroll down!

The second macrotrend in Entertainment

2008-10-20T10:21:00.002+08:00

Macrotrend # 2: Entertainment will increase dependence on unconventional revenue sources created by technology innovation

As entertainment becomes medium agnostic, i.e. the same content gets re-cycled over multiple mediums like film, television, video, gaming, ringtones, events, merchandise, V-O-D etc., conventional revenue sources would diminish and give way to new revenue sources (propelled by technology innovation)

Examples -

Today’s music is increasingly becoming dependent on I-tunes downloads (new revenue source) rather than CD sales (conventional revenue source).

“Today, home entertainment is shrinking, box office is flat, the TV audience is splintered, and significant internet money remains hypothetical. Video game revenue, meanwhile, shot up 34 percent last year and has increased 49 percent so far in 2008” says Graham Hooper, head of Disney consumer products.

When it comes to the preferred mode of listening music, mobile phones are a close no.2 at 25% compared to 28% of mp3 players. On the subject of downloading music, nearly 70% of all kids (<14 years old) use Bluetooth / MMS to exchange music while the older youth (15-24 years) prefer to download from the net to the computer and then transfer to their phones.(Source: Synovate Young Asians Study 2007 for MSN)

Implications –

1. When in the business of entertainment, it is critical to start engaging new technologies ahead of the curve and the market

2. When thinking of an entertainment strategy for your brand, ensure that you experiment boldly with future “star” apps along with your evergreen and conventional distribution channels

Entertainment Futurology - The first macrotrend

2008-10-18T12:39:00.003+08:00

Macrotrend#1: Entertainment will further integrate with shopping to complete the consumption circle

The new meanings of entertainment lie in the cusp of rich experiences, technology and shopping. This creates a new trend in convergence where the offline media and online content converge with out-of-home spaces.

Evidence?

Without exception, all cinema theaters and multiplexes are on the top floor of a shopping mall! And these shopping centers are increasingly being deliberately designed to become popular youth hangouts.

Live performances are miniaturized to fit into nooks and crannies of shopping foyers. And most spectators experience the event through the video recording function on their mobiles.

Under the new program from YouTube, viewers of a video with a music track would be able to click on an icon to download that song directly from a music store (without leaving the site!)

Implications –

1. Similar to the editorial and advertising lines getting blurred in offline media, get ready for a blurring of entertainment and commerce across various media. Look out for that shopping cart symbol.

2. Even if you are not in the entertainment business, your brand will need an entertainment strategy (just the way you have a digital, offline and in-shop strategy)

Look out for macro trends # 2 and 3 in future posts

Youth culture in Singapore (Lah!)

2008-09-19T10:07:00.005+08:00

On the surface, Singaporean youth are identical to their peers anywhere else in the world – they love to hang out with friends, listen to music, go pub hopping, let their hair down in a disc, create their own identity (distinct from their parents) and ‘be cool’. However, dig a level deeper and one begins to notice significant cultural differences with their global counterparts.

The youth culture in Singapore has historically been fashioned by two essential principles –

The first is an underlying Confucian awe for the authorities. There is a tacit acceptance that the Government knows best. And this awe / acceptance results in a natural ‘apathy’ to most issues. Hence most expressions of dissent and rebellion (that are so crucial for social change) seem to be rather repressed or even absent in Singapore.

The second is an acute realization of their “smallness”. After all, they are surrounded by powerful big-brother neighbors and have very few genuinely home-grown role models to speak of. Notice the almost desperate celebration of every minor victory / difference of the Singaporean. The result of this - they are swayed and buffeted by trends that happen “internationally”. As an illustration, in a recent survey, Singaporean youth preferred Black Eyed Peas as their most favourite music group! Another one - the Sing Fest 2008, a local music festival, featured Alicia Keyes as the lead singer!

In sum, this is a not-so-confident local culture that justifies itself through the garb of economics. You just have to go to the nearest shopping mall to see this in action!

However, there are early signals that these two principles – the repression of individual expression and lack of pride in local culture – are changing. Some of this change is being aided by a government that realizes the need to move from a manufacturing / services economy to a creative innovation economy. Some of this change is being driven by the interconnectedness of the youth to their global brethren (through various digital forums – blogs, sites, social networks …). And most importantly, the change is being driven from within – by a blossoming of confidence - stemming from being the first generation to have only seen an economically prosperous Singapore.

What are these early signals? Firstly, there has been a rather self-effacing and humorous appreciation of Singlish - the uniquely Singaporean version of English. Secondly, there has been a steady increase in the production of creative arts – whether it is movies, television serials or even local rock bands. Thirdly, the government is increasingly indulgent and almost approving of individual expression. As an example, the recent censor clearance to controversial scenes of Money no enough 2 (a Singaporean film) made news headlines in the country.

Hence, there is a small but significant section of the youth population that is testing limits of independence and pushing creative boundaries. They are becoming comfortable being in the spotlight. And they are allowing their curiosity to blossom as artists, designers, bloggers and mavericks …

However, large swathes of this population continue to be happy to belong to a society that prides itself for its Victorian values and law abiding nature. They continue to be success / education / work focused. And most importantly, they continue to be reticent of their own individuality

A new model for communications planning

2008-08-14T10:59:00.006+08:00

How does one navigate marketing in this new world of engagement where the static ‘two-television-campaigns-a-year’ style of marketing has been replaced by dynamic and continuous marketing communications in a rapidly exploding connections environment?

Here is a beta model created by me (which is being currently tested on some projects)

This model has a lynchpin in the engagement platform: a media agnostic concept that is capable of multiple expressions dependent on the nature of the consumer, connections and intervention in question. In other words, the engagement platform is version 2.0 of the USP / single –minded brand idea.

Inputs into this engagement platform come from enquiries into the consumer, marketing, brand and (additionally) ideal connections.

The key output of the engagement platform is a truly multi-media contextual messaging program, each element of which is evaluated for ROI and then fine-tuned over each wave of implementation.

More on the workings of the model in a later post.

Is the 30 seconder going six feet under?

2008-08-01T16:01:00.002+08:00

Ms.Krishnan spends as much time on her laptop as she does with her daughter’s homework. What she does not have time for however, is watching TV at a stretch. Which is why she isn’t aware of the new flavoured yogurt in town. But the loss is definitely not hers.

Ms.Krishnan is a case in point. Increasingly, intuitive brand builders are wary about putting monies everywhere their brand touches their customers. Gone are the days of the ‘do everything’ approach. Instead, they are identifying and spending aggressively on those consumer touch points they are sure will have maximum impact on revenues, growth and profitability.

So how does one go about it? Superior brand building, say experts, is based on certain cornerstones that set the conditions for the customer experience that matters most to them. As a media expert advises ‘One should never start off by deciding what kind of message you want to deliver, but rather by what kind of message your consumer wants to hear.’

Banks, for example, understands the first lesson well – that of identifying your most important customers. They employ advanced analytics to say with a high degree of accuracy what every customer is worth in terms of revenue and profitability.

Secondly, analyze those touch points that will have the greatest positive impact on their behaviour and loyalty. Is Mrs. Gopinath more likely to sit and watch a re-run of your 30-seconder or would she rather notice your brand if it were cleverly embedded in her favourite TV soap?

Of course what is equally important is to prioritize the initiatives that make a difference and set realistic goals for the same. Take for example a call center – improvements there could call for programs ranging from increased training to outright replacement of employees. But which of these are most budget, time and employee friendly, as well as being the most effective?

And fourthly, never ever relax after running a successful strategy. After all, lets not forget that competition is always at your heel. So if you’re an airline whose unique touch point is the in-flight entertainment you offer in economy class, remember, it’s just a matter of time before others ape you.

This brings us to the evolving role of today’s brand leaders. Gone are the days when they could afford to sit in their glass cabins and dole out the INTERRUPT and REPEAT methods of media planning to every client. Today, unlimited TV channel choices and tight budgets are not conducive to this ‘mass drilling’ technique. Instead, what they need to do is behave more like football coaches – fielding different players at different times to generate new and better plays. All so that touch points that matter are synchronized to form a chain that successfully convey the brand’s promise.

So what is the industry buzzword? Call it what you may. Total Communication Planning or Media Neutral Consumer Planning or Consumer Engagement Planning. Whatever the nomenclature used, one thing is clear. For successful brand communication, innovation is critical. The viewer is in control, channel choices are endless, budgets are under pressure. Indeed, The Age of Interruption is over. Open the doors to the Age of Engagement.

The long tail of consumption

2008-06-19T11:49:00.007+08:00

No, this is not about THAT long tail! It is not about the economics of media choices (covered very well in the think piece by Chris Anderson), but about the economics of consumption itself.

Some statistics – Nearly 40% of the world’s population lives in less than US$ 2 per day. Out of these, more than 60% live in less than US $ 1 per day. Combine this with the fact that nearly 75% of the global poor live in the Asia Pacific (with the largest numbers coming from India and China). These people are the true ‘long tail’ of consumption – very large numbers of people consuming very small amounts (individually) of essentials – leading to gigantic volume opportunities.

However, converting this opportunity needs careful navigation. Most conventional understanding has to be unlearnt and yet, some basics have to be adhered to. Here is a short check-list of the basics

Squeeze the last drop of paste from that toothpaste tube – COST ENGINEERING:

Every penny of costs saved means reduced prices to the end consumer. And that means getting new waves of consumers as a part of your franchise. Hence, marketing needs to be obsessed about delivering at the lowest cost (period).

A good example of this can be found in the Indian cellular market where the cost of a one minute call is now less than 2 cents (and is among the cheapest in the world). Every wave of price reduction (both of the handset and the call) bought an entirely new wave of marginal consumers giving a CAGR of more than 18% for the industry!

Tips for marketers

1. Flag the price prominently on the product
2. Communicate aggressively about every price reduction
3. Focus on per unit costs rather than value added features, freebies or guarantees
4. Create brand associations with ‘cheap’ without compromising on quality

Making one do the work of three - SMART INNOVATION:

The long tail consumer demands innovation. And this is not the innovation of new applications, but the smart innovation from the creativity of everyday consumer (some people call it being ‘street smart’!)

An award winning example from Unilever – A hard plastic nozzle was added on the top of every small shampoo sachet, so that the contents of the sachet could be consumed over multiple uses. This ensured larger family consumption and a reduced consumer feeling of ‘wastage’

Tips for marketers
1. Make consumer observations and home visits – a regular part of your research program
2. An internal innovation (smart) contest unleashes the creative potential of ‘regular’ employees
3. Test everything – what works for us rarely works for the long tail consumer
4. Innovations get copied quickly – be prepared with a calendar of initiatives

Small is the new big – THE POWER OF ‘MICRO’:

The long tail consumer has almost similar needs and wants as your regular consumer (he only does not have the financial wherewithal to afford them). Hence, miniaturization of anything (not the quality, but the size) is a sure formula to target the long tail consumer. And this works across products and services.

A world’s first would the miniaturization of finance / lending by the Grameen Bank in Bangladesh – finance of small amounts (of less than US$200) to enable the poor to establish any self sustaining business (and hence make better lives for themselves and their families). Visit http://www.grameenfoundation.org/ for more details.

Tips for marketers
1. Abandon “per-capita” thinking
2. Think about how you can reduce the entry barriers to your consumer
3. Sharing of services and Pay-per-use are great ways to miniaturize without any compromise
4. Even distribution can be miniaturized – make every consumer your retailer too!

I see you but do I understand you? PATHWAYS TO COMMUNICATION:

Targeting and communicating with the long tail consumer is particularly challenging because of poor knowledge (due to lack of adequate education) and the lack of any single effective medium. As a simple illustration of the above, mobile phone marketers are grappling with the fact that emerging markets have higher numbers of textually non-literate people who are challenged in several textual prompts and contact management. This requires a fundamental re-thinking of the interface itself!

However, inspiration is at hand. Both governments and non-governmental organizations have created a number of protocols (most available online) while tackling this problem in communicating about deadly diseases like HIV AIDS and other health issues.

Tips for marketers
1. Keep the benefit basic and simple
2. Think about visualizing the benefit in a single frame
3. Simple analogies, fables and folk tales align to the current consumer environments
4. Participating in community initiatives like the local health center is great for CSR too!

Wrapping it up - Cost, Innovation, Miniaturization and Communication are the four poles of success to convert the long tail that beckons tantalizingly into its labyrinth. Do navigate carefully (the above tips can only help!)

Understanding the Indian Luxury consumer

2008-06-13T11:29:00.004+08:00

To understand the Indian luxury consumer, one needs to understand their cultural moorings (which can be best understood by taking a historical perspective).

Historically, Indian society was structured on a very rigid ‘caste-based’ social system. The caste you were born into dictated your standing and position in society.

Over time, enhanced education, liberal (democratic) values and globalization have ensured that discrimination based on this caste system is not as prevalent in Indian society. However, the concept of a social ladder continues to be embedded in the Indian psyche. All of us Indians strive to climb the social ladder.

The trend in the last two decades has been that this social ladder can be bought (read acquired) by the fatter wallets of the rich Indian class. Hence, luxury goods and services are ways of depicting our social standing in an increasingly capitalist / materialistic society.

This depiction of social standing through ownership of luxury goods implies the presence of a strict pecking order. Owning the bigger car, private school education for your child, travelling abroad and staying in exclusive residences are all examples of this pecking order. Even within each category, there is an implicit hierarchy – Bombay Scottish (Mumbai) and Modern School (Delhi) are more “up market” compared to St.Xaviers or St.Columbus (respectively). The Rolls Royce Phantom is more premium compared to the Mercedes E Class, hence can only be owned by one who is higher in the social ladder.

Hence India is unlike more egalitarian societies where luxury goods are consumed for their aesthetic sensibilities to fulfill self actualization needs. In India, luxury goods are mostly consumed for their “social-marker” sensibilities to fulfill one-upmanship needs.

Seen within the above prism, one begins to appreciate why an international tag (brand name) works much better (we even use svelte and bronzed Mediterranean models to communicate luxury in India).

We begin to understand why it is important as a luxury brand to be exclusive in ownership but widespread in awareness. After all, everybody should know that somebody who wears a Rolex is truly “somebody”.

This need for one-upmanship also translates into the need for rich opulence rather than muted clean minimalist design.

We also comprehend why the plastic-bag packaging of the luxury brand is just as precious and preserved by us for a lifetime. (Parallely, we also see cheap imitations of the plastic packaging selling for a dime on the streets).

However, all the above is for the owner / consumer. As a buyer, the luxury consumer (like any other Indian) wishes to have more value in their purchase. Some sure shot ways of demonstrating added value - An extra guarantee, free service camps, membership to owner clubs, spare bags, home delivery, gift packaging …

Just another demonstration of how we Indians have an innate sensibility of resolving completely contradictory opposites with consummate ease!

Tales from Mediapore - a fictional story (?)

2008-04-27T05:01:00.005+08:00

The phone told me that my lord had finally decided to visit me after a long day’s work.

So, while the denizens of Mediapore had decided to celebrate the return of King Rama with lights and firecrackers in the usual pomp and splendour, I decided to celebrate it differently.

I dressed myself in the finest jewellery, as befits the queen of the home and the owner of my lord’s heart. The cooks were commanded to prepare the most exotic dishes and Matsya, my maid, counselor and friend, prepared the table for a quite candle lit dinner by the poolside under a full moon night. And then I waited for what seemed to be an eternal wait.

Finally, I heard the quite yet confident footfalls of my lord. Was there a little incongruity in the sound of the footfall? I chided myself for creating mountains out of molehills and, as a matter of habit, adjusted my heavy sari. I looked up coyly, only to see a frown on my lord’s face. It was not the classical frown of irritation, but a frown tinged with frustration and insecurity.

At least, that explained the sound of the footfall, I told myself. Determined not to ruin the evening, I asked, “What worries my noble Lord?”

“O beloved, I was walking incognito in the Purana Quila area for the mandatory consumer observations I have to do. And I heard this beggar woman demanding of her man to define what he does for a living.”

“Just a family squabble, O Lord”

“Then pray help me answer what has been vexing me all evening. What do I do for a living?”

My woman’s intuition told me that this was the beginning of the end of a wonderful and romantic starlit evening, and all that followed!

Long years of experience had taught me that this was one of ‘those’ questions. For me, like most womankind, this question had an answer that was staring at your face and begging to be answered. However for my lord, like most mankind, it would require a gargantuan effort in several, maze like directions to arrive at a solution for this one.

Being known to be a solution seeker who does not give up easily, I decided to put a short and snappy end to this.

“Tell me, what title has the king bestowed you with?” I asked in a half irritable, half reprimanding tone.

“Planning services” replied my lord in an absent way that suggested to me that he had not paid any heed to my tone and was still pre-occupied with the problem.

Deciding that subliminal cues and half measures will not cure this rampant cancer, I became more aggressive and stated with an air of finality, “So, you plan for a living!”

This snapped my lord and he replied, “The problem with you women is that you treat life as black or white, while actually there are only several shades of gray. Do you know that there is brand planning, media planning, account planning, new business planning, consumer planning and only God knows how many other kinds of planning?”

I retorted, “Then, your benevolent king has given you the wrong title!” To this, my lord shook his head from side to side and looked skywards for divine intervention.

And at this precise moment, Matsya walked in with a pronounced sway to her hips (wonder why she does this only in front of my lord) and announced that the dinner was ready. At the end of my tether, I beckoned her to go away and leave us alone. I turned to my lord and asked, “Then, what kind of planning do you do?”

A prolonged silence indicated to me that this question did not have any straightforward answers. I decided to re-phrase my question, “Do you do consumer planning?”

“And account planning, and brand planning and new business planning. In fact, the only planning I do not do is media planning.” After a contemplative pause, my lord continued, “I also do face planning, when I have to be in court just because the king wants to see my face!”

I decided to contribute by saying, “I think the crux of the problem is in the definition of planning. If you can define it right, all your problems will be solved.”

The lord looked at me with admiration, re-appraising me on my intellectual worth and said, “That is the correct definition of the problem. But alas, my dear lady, that is not the solution.”
So, when the world outside was queuing up to watch King Rama and his consort take the presidential ride across the city, I gave a quite sigh of relief on the progress and asked, “A basic question. Why does the king need you?”

“He needs me to talk the talk. And before you ask any half-brained question, let me explain that. He wants to talk the language of the common people, communicate messages that they understand, and make him appealing to them”

“And in this case, he is the brand.” I clarified in an apologetic tone.

“Yes, and he needs me because he is far removed from his people. He does not understand his kinfolk as well as I do. Ironic, isn’t it?”

I demanded, “Does this not mean that you need not know as much about the king as much as his people?”

“Theoretically, yes. Practically, no. Because if my job is to get the king to meet the people by getting him to talk the language of the people, then I need to know both the sides.”
I remarked contemptuously “Are you telling me that without you, the king would be king and the people would be people and the twain would never meet?”

My lord noticed the contempt and remarked jokingly, “You have no clue as to how important I am in the King’s scheme of things” And I may be wrong, but I did notice a distinct swelling of his chest too!

I summed up the conversation, “In short, you are responsible for the communication between the king and the people in the language of the people”

My lord confused issues all over again by saying, “That is precisely another definition of the problem. Am I responsible for the king, the people, or the communication between them?”

The crackers were making a din. The drums started beating and the conches were sounded. The king was in the neighbourhood. My lord remarked, “Ah, the ills of the world can be discussed ad infinitum. Let us first enjoy Matsya’s Cheese Bolognese.”

I took umbrage to the remark and replied in a hurt manner, “I prepared the meals today” And my lord nodded sagely. Or was it teasingly?

Once again, I began looking forward to the night. At least I am clear on what I do for a living!

Are you guilty of creating a healthcare brand the age-old FMCG way?

2008-04-23T16:10:00.002+08:00

A brand is a brand is a brand. Find out the needs of the consumer, satisfy it with a product that is better than competition and finally communicate the benefit of this better product in a clutter breaking way.

But selling this simple thought to the OTC healthcare marketer is next to impossible. It is almost like selling coal to Newcastle (notice a small twist to an age old saying!). They claim that healthcare brands are the consumer’s necessity (not his need), it is practically impossible to have a product that is better than competition (with all of them having a similar molecular composition as mandated by law) and finally it is virtually a communication nightmare!!

A natural conclusion of the above discourse would that there is no role for a concept called branding in the healthcare space. And yet, mere observation of media coverage of the healthcare industry would lead us to believe that nothing is as current or as fashionable as talking about building brands in healthcare. If this were to be taken as a mandatory, true practitioners of the craft of healthcare branding solutions would do well to recognize the differences (and the similarities) with FMCG style branding to evolve a new unique paradigm of building brands in healthcare.

Point of difference # 1: If brands in the FMCG space were about fulfilling desires, brands in the healthcare space are practically essential necessities. Hence, healthcare brand building is not as much about building emotional preference, but much more about building emotional reassurance

Point of difference # 2: If brands in the FMCG space make the consumers life better and more empowered, brands in the healthcare space are consumed only when the person is under the weather and usually when there is a feeling of a loss of control. Hence it is not about the good life as much as it is about sympathetic understanding

Point of difference # 3: If brands in the FMCG space engage with the knowledgeable consumer through entertainment, brands in the healthcare space engage with a consumer who has little or no knowledge. Hence, it is not about being as entertaining or connecting as a soap opera as much as it is about ‘clinical ness’, authority and expertise of the product.

Point of difference # 4: If brands in the FMCG space connect with the end user (who is also the buyer in most cases), brands in the healthcare space need to enlighten the end user while connecting with the influencer (the doctor). Hence, information dissemination needs to be superimposed by social responsibility (to avoid misinterpretation and misuse)

Point of similarity: Creating a healthcare brand is about creating a source of competitive differentiation to dominate the consumer’s mind just as it is in FMCG

Hence when both FMCG brands and healthcare brands seek DIFFERENTIATED DOMINANCE of the consumer mind, the dominant FMCG model of consumer behaviour to achieve this is the well-known AWARENESS >> INTEREST >> DESIRE >> ACTION (AIDA model).

However, if we were to take cognizance of the points of differences between FMCG and Healthcare, the parallel healthcare model of desired consumer behaviour would be AWARENESS >> KNOWLEDGE >> CONSULTATION (FOR CONSUMPTION) >> RECOLLECTION (AT MOMENT OF NECESSITY). This can be nomenclated as the AKCR model. Please do notice that I do not name it after myself for fear of being labelled a narcissist!

Three examples from diverse categories within healthcare (Rx, Public Service and OTC) – Inhalation therapy for Asthma from Cadila, the Pulse Polio program and Crocin illustrate the above differences between AIDA and AKCR.

Inhalation therapy for Asthma created awareness of asthma as a life-limiting symptom. It also created knowledge for the fact that new generation inhalation therapies can help overcome this limitation and exhorted the individual to consult the doctor.

The Pulse Polio program started with a quasi infomercial (with Amitabh Bachchan as the propagator of the message) to create awareness and knowledge of the inoculation programme. Subsequent messaging counseled new parents to take their children to the nearest health center as consultation for consumption. Finally, admonishment from the Big B himself and the promotion of the dates of polio drops administration was an exercise in creating recollection.

Unfortunately, most OTC brands (in the attempt to play the FMCG game) seem to move directly from creating awareness to creating recollection at the moment of necessity, missing out on the crucial steps of knowledge and consultation. This may be an explanation for why several new direct OTC launches (Mylanta comes to mind) seemingly fail. One of the only brands that have moved along the entire path is Crocin and that may explain why it is today is quasi-generic to the category of pain and fever.

In sum, AKCR is the AIDA of healthcare brands. And yes, healthcare brands should not be built the FMCG way.

This article has been co-authored with Pranoti Sheldenkar

The affluent Asian consumer

2008-04-16T14:15:00.005+08:00

Think you know the affluent Asian consumer? Take this TRUE OR FALSE test and find out for yourself …

1. Affluent consumers are older people with family wealth - True or False?

In what Fortune magazine terms the "Goldilocks" economy, economic prosperity means that new wealth is being created at an unprecedented rate, and as a result, the face of the affluent consumer is changing across age, economic, and racial spectrums. With the rise of the new economy, the stock market 'whiz kids' and the Internet revolutionaries have created a new generation of young entrepreneurs who have taken their ideas and skills and become millionaires seemingly overnight.

The ‘emerging rich’ are no longer those having old family money. They are significantly younger people. And these ‘first-generation’ affluent are demonstrating a large appetite for luxury goods throughout Asia.

"As the majority of 'The Emerging Rich' did not grow up surrounded by the finer things, it is important for luxury marketers to enlighten them and expose them to the wonderful experiences awaiting them, because once they experience the good life, they are not going to go backpacking again." Says Pamela Fiori, editor in chief, Town & Country Magazine

2. Affluent consumers tend to spend rather than invest - True or False?

According to a recent Synovate study among 1,674 Hong Kong business decision makers, increasingly, affluent people are thinking about the long term investment rather than immediate luxury consumption. One of the reasons for this change could also the already high levels of ownership of luxury, personal and household products by the affluent class.

Facts - Fewer wealthy people in Hong Kong enjoy shopping as much as they did a year ago and more of them prefer to own property or invest in the financial markets. According to the HSBC China Affluent study, similar results can be seen in China where nearly 26% of all affluent people own a third home and (hold your breath) nearly 8% own a fourth home. There is also a growing market for investment advisory services which indicates that the affluent are increasingly enjoying the ‘thrills’ of participating in the volatility of the stock markets.

"Today, affluent consumers are far more interested in living well and smartly rather than keeping up with the Joneses" sums up Pam Danziger, author of the book, Why People Buy Things They Don't Need.

3. Affluent consumers are interested in acquiring ‘products’ - True or False?

Many affluent and older consumers today prefer experiences more than physical goods. They want to collect vivid and meaningful "experiences" to store as memories and exchange as "conversational currency."

They desire for luxury experiences - experiences that will make them feel special, whether it be a massage, a night out with fine dining and entertainment, or taking a luxurious vacation abroad. Parallely, many luxury products such as cars, jewelry or entertainment systems are capturing a declining portion of that total, as boomers “max out” on gadgets and gizmos and turn their attention to luxury experiences.

According to the American Express Platinum Luxury Survey, more than half of affluent consumers (59%) receive the greatest personal satisfaction from experiences, such as fine dining, travel, entertainment, cultural/arts events and sporting events. In the same survey, only 21% of those surveyed say they get the greatest satisfaction from personal luxuries, such as automobiles, fashion and jewelry!

This can also be evidenced in that higher-quality magazines focusing on lifestyle experiences such as Harper’s Bazaar, GQ, Vogue and Entertaining & Travel have bucked the general downturn in the magazine market and have been successful in the most recent Roy Morgan Readership survey in Australia.

4. Affluent consumers have a relatively relaxed lifestyle - True or False?

Affluent people of today lead a very demanding 24 X 7 lifestyle. They work exceedingly hard and expect their relaxation to be just as challenging and demanding. The dichotomy of the new affluent consumer is captured in a single statement—“the more they make, the more they expect from life"

According to a study among affluent audiences, more than 50% of all respondents had less than 2 hours daily (on an average) as leisure time and most of them prefer spending it with their families. Interestingly, only 5% of all respondents had more than 7 hours daily for leisure. Surely, this is a ‘workaholic’ affluent audience

5. Affluent consumers seek exclusivity and envy - True or False?

Affluent consumers are paying a premium for authenticity over exclusivity and envy. Authenticity has manifested in authentic products with natural materials and authentic experiences such as adventure and eco travel, arts and culture, food and wine, spas and wellness, and even their vacation homes.

They today want products to contain authentic stories that will enable them to narrate their own experiences, and, in many cases, for the purpose of impressing others. Expect to see more honest (albeit poetically enhanced) stories about amenities, destinations, properties, local history, and authentic experiences.

An excerpt from the brochure of India’s most expensive Spa in the Himalayas serves as a good example – “This lodge is handcrafted with architectural elements designed by local artisans as a testament to generations of traditional craftsmanship. The timbers harvested from this property have been used in every room.”

6. Affluent consumers seek to have more money - True or False?

“Money isn't everything to world's wealthy" says the AmEx / Roper ASW global affluent study among 11,000 consumers in over eleven countries - about half of high income consumers around the world would choose to have more time in their lives, rather than more money. Even in money-driven Hong Kong, more than 37 % of all affluent consumers preferred time.

"In the real world, affluent consumers aren't relaxing poolside or eating bonbons," said Peggy Maher, VP / GM at AmEx "They're working long hours, juggling personal and professional lives, and are constantly pressed for time."

Hence, time is becoming a big desirable in 2008 - a scarce resource and the new status symbol. Affluent consumers crave quality time for themselves and to spend with friends and family. These consumers now dedicate specific weeks every year to reconnect with others close to them and consume ‘new’ experiences.

7. Affluent consumers do not reduce spending in tight economic conditions - True or False?

Many affluent consumers are also tightening their belts. They now prefer to ‘fractionally’ own their luxury goods. And this trend also means that so many affluent consumers are also turning into mini-entrepreneurs. See this as a further evolution of the person to person marketplace – an eBay for the rich and the famous.

In the current real estate market, rich individuals are now looking to fractionalize their very own vacation home (see Luxuryfractionalguide.com for more details). Expect to see more hybrid fractional real estate alternatives that are consumer friendly and consumer driven.

“Luxury-goods purchases dropped 21 percent for each affluent consumer, while spending on buying and renting experiences gained 11 percent in the third quarter of 2007 according to research firm, Unity Marketing. These data display the undeniable interest in luxury access without luxury ownership,” comments Susan Kime, President of KIMEDIA, LLC, and expert in the fractional luxury field.

8. Affluent consumers are about self-centered indulgence - True or False?

Affluent consumers are moving beyond self centered indulgence and are increasingly enticed by ‘eco-goodness’ and its impact on their leisure habits.

In a HSBC China Affluent study among over 15,000 respondents, Being Green was the second most important variable affecting buying decisions (with a score of 4.45 out of 5). The only variable that scored more in affecting buying decisions was convenience and overcoming time constraints (4.55 out of 5).

Hence, learning the rules of green marketing and committing to environmental sensitivity is paramount for the luxury marketer. Expect to see more green buildings, newspaper and jute bags, water conservation, energy efficiency, hybrid luxury cars, etc. as green consciousness becomes more prevalent.

9. Affluent Asian consumers look westwards to Europe / America for emulation - True or False?

Till date, the luxury goods market in Asia has been dominated by products primarily designed for the Western market and ‘imported’ into Asia.

As the luxury consumer matures beyond ‘status’ and gets further refined on dimensions such as discernment, taste, indulgence etc., there is a resurgence of interest and pride in their own culture.

Opportunities now exist in varied areas of luxury products like Chinese antiques, Japanese tea tables, Indian traditional jewelry, Jade statuettes and even real estate in a traditional style (Si He Yuan).

In sum, if you desire to get a grip on today’s affluent consumer ...

Start by bunking the myth that they are one-dimensional people with old family wealth seeking to own luxury products.

Instead, start thinking of them as ...People who seek life-enriching experiences; want to be assured of style and quality; need to be stimulated by new and different situations; want to be recognized as knowledgeable and worldly; are not afraid of the unfamiliar, offbeat, or exotic; have a global perspective; enjoy regionally authentic products; have a predisposition to nostalgia; do not purchase luxuries purely for materialistic reasons; have a social conscience and appreciate doing business with organizations that have a true social commitment; have a strong influence on the buying decisions of peers; consider spirituality and religion as an integral part of life; are quick to seek out information online; desire ways to simplify life; and are always pursuing more of life's most essential luxury—time.

Feel breathless?

For those who still want to check their scores on the above test
TRUE – Zero and FALSE – Nine !

Challenges for the FMCG marketer in the Asia Pacific

2008-04-16T14:13:00.006+08:00

There is an ancient African adage "Smooth seas do not make skilful sailors." And nowhere is this truer than the FMCG category. From the late nineties where life was relatively easy focusing on benefits and branding, the last decade has been testing the mettle of FMCG marketers.

To know more about the kind of choppy waters that the FMCG marketer faces today, read on …

1.Increased consolidation of trade

In many key APAC markets like India, Malaysia and Thailand, trade is fast consolidating into “modern trade formats” from mom-and-pop stores. The rule of three has already happened in the retail trade in some other markets like Australia and Philippines.

This consolidation translates into increased trade and channel power to control / dictate brand shares while also resulting in a continuous downward spiral on brand margins. Compound this with the fact that house brands sit alongside established brands with a much higher value proposition.

Implication of this increased trade power – The marketer is on a treadmill of (quantifiably) generating consumer pull through tangible brand differentiation.

2. Heightened competition

There is a proliferation of brands at four levels of competition – global, regional, local and retailer brands. The erstwhile Chairman of Unilever India has gone on record saying that there are more than 1000 documented brands of detergents in India! This increase in number of brands is happening for a number of reasons -

Many marketers use new brands as a strategic initiative to increase shelf space (and hence bargaining power with the retailer). Many local brands also quickly replicate new initiatives of global marketers to blunt any competitive edge.

Launching a new (follower) brand in any category is also relatively easy today as costs of entering any category go southwards. This is because suppliers, material and even formulations are becoming standardized and common.

3. Bewildered consumers

Not so long ago, consumers were excited by choice and saw the trip to the supermarket as entertainment. But as this choice explodes, trade consolidates and competition becomes shrill, consumers increasingly are bewildered and confused by the sheer claims and counter claims made by several brands (within a category).

Hence as human psychology would dictate, in an environment of confusion, consumer lapse back to their previous habit (read safe choice). Alternatively, they are becoming trained into a promotion seeking behaviour.

And to make matters worse, they do not find any perceivable differences within the various brands. This can be evidenced in recent global phenomenon - consumers down trade to value brands on essentials while they upgrade on non-essentials like holidays and luxury products. This behaviour is also expected to be on the rise as cost of living (basic foods, housing and education) goes up in various cities across the APAC. This would further propel consumers to cut back on non-essential FMCG categories.

4. Reducing impact of mass media

Mass media (like television and print) is more fragmented today. The costs of reaching the same consumer over mass media are also increasing. Combine this with the fact the number of media properties that aggregate consumers are also reducing (one big aggregator this year – The Beijing Olympics - needs to be evaluated for its consumer consolidation prowess).

Content is becoming screen-agnostic. The same content can now be viewed on your PC, mobile, retail screen, hand held PDA, Podcast (and in many instances) without the advertising. And this is not only for a narrow niche of “kids”. This phenomenon is increasingly becoming main-stream as technology becomes accessible for all.

From a consumer perspective, there is increasing rejection of intrusive advertising (refer - the dreaded TV remote). However, they now love participating in immersive, engaging and entertaining brand experiences. Most media (both conventional and new) today offer such opportunities to marketers (for example – branded content on television / retail merchandising / blue-casting / Text SMS promotions and many more). The time is ripe for a transition from intrusion to engagement.

5. Absence of major innovation

In this decade of ‘power brands’, we see very little innovation in the FMCG category (unlike for example – mobile phones, automotive etc.) Most innovations are minor in nature - focused on packaging, incremental formulation improvement and delivery mechanisms. The result – we have not seen any dramatic new news in this category for some time now.

This is an indication of a maturing category desiring consolidation. But this also implies that consumer attention and wallets are diverted to the more ‘sexier’ categories.

How does one bring back the spirit of true innovation and enhance the momentum / energy of the brand? How does one (again) reward risk taking in the category? How does one satisfy eternal consumer needs in dramatically new ways? Questions that keep many marketers awake in the middle of the night!

In summary

The FMCG marketing environment is fluid, dynamic and ever-changing today. It needs the marketer to be strategic and tactical, intuitive and analytical, experimentative and best practice, brand-led and sales-led, innovator and implementer – all rolled into one. Interested in sailing – anyone?

Tomorrow's brand curators

2008-04-16T14:12:00.005+08:00

There is a famous quote that goes “Today is the tomorrow that you worried about yesterday”

And one of the current ‘worry’ topics is the future structure of the advertising agency. The last big change in this area was the unbundling of the media agency and that was over a decade ago!

After media unbundling, practically every communication specialist has started outside of the advertising agency model. You just have to look at the proliferation of specialist areas like digital, direct marketing, CRM, rural, events, promotions, branded content, brand consulting…. and the list goes on. The inescapable truth is that the future has just bypassed the traditional advertising agency.

I should admit that I am one of the few who have taken advantage of the ‘unbundling’. I have learnt about brands from quasi-marketers in the full service agency. I have learnt about observing consumers for creative inspiration in the unbundled creative agency. And I am still learning about data-driven communication solutions in a media agency.

While the romantic in me desires the full service agency model, the reality of today’s environment is the unbundled specialist.

The reasons for this unbundling have been both rational and emotional. Rationally, specialization is a natural response to the shareholders demand to overcome reducing compensations. And emotionally, there is the desire of each specialization to be in charge of its own destiny rather than being under the shadow of the big brother creative agency.

However, the biggest loser in this unbundling has been the brand – the idea of investing systematically in keeping the brand refreshed, differentiated and relevant to its consumers so as to create a long term organizational asset is being compromised in an unbundled world.

This is because each specialist (by their very definition) makes claims to be the most appropriate solution for the brand in the immediate context.

This begs the question - who is the brand’s guardian today? Who salvages the brand from the crossfire of specialists (each claiming first rights on ‘brand stewardship’)?

With no immediate solution in the horizon, marketers who specialize in demand creation are being forced to create consumer competencies within their own team. However, this is a compromised solution since these consumer ‘experts’ in the client team see people only through the narrow lens of their own category. They lack the natural advantage of cross-category consumer understanding.

Given that the unbundled specialist is a reality of today’s environment just as much as the need for a touch-point neutral brand champion, how does one reconcile these two seemingly opposite demands?

My solution – identifying a set of “uber-planners” – cross functional specialists who purely focus on consumer and brand planning for demand creation. The primary responsibility of these uber-planners would be to decipher and interpret the brand ethos not only to their own specialization but to all specializations working on the brand. And hence, they could physically reside in any specialization – media, creative, direct marketing, digital etc.

Call them specialization-agnostic brand curators, if you may.

These uber-planners (named so purely for convenience of understanding and with no implication of any class bias) would need to have cross functional expertise in various disciplines of communication and marketing while having primary competence in consumer understanding. They would need to comfortable in both the qualitative and quantitative worlds. And, most importantly, they must be staunch believers in the brand cause without any vested affiliations.

Too romantic a notion? Not really, because these planners would become new business magnets for any agency. And because they address a real client need, (I assume) clients will be willing to separately compensate for the service.

While I personally prepare for this eventuality, the existing models of collaboration seem to be one of three – creating a bespoke client organization of specialists from within the network (WPP), a lead agency responsible for strategy (like BBH / W&K) with supplier specialists reporting in to them and lastly, creating a collaborative platform of preferred partners (CARAT). While I am not in a capacity to comment on the first two models, I do know a little more on the third model of true collaboration.

Carat is the only ‘genuinely’ independent media agency in the world with no affiliations with any other communication specialization. We have embraced collaboration as one of our core organizational values with curiosity and creativity being the others. This recognizes that we live in a networked world of specialists where the end goal of all partners is superior brand results.

As a result of this organizational value, while interacting with other specialists, we take great pains to be non-threatening and be more goal-obsessed than power-obsessed. And we have taken the lead and made significant progress in identifying, recruiting and training communication planners with cross functional expertise and passion for consumer centricity.

So what will the future advertising agency look like?

It depends on whether you are dealing with the imminent reality of a multimedia future or if you are still obsessed with the past and looking at the minutiae of your TV campaign. You do not need a brand curator to tell you what happens to people who have their backs to the future.

Engagement, not intrusion

2008-04-16T14:05:00.004+08:00

Market research versus strategic planning

2008-04-16T13:58:00.002+08:00

Some ancient stuff

2008-04-16T13:55:00.002+08:00