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Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
Marketing Innovation In India
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Marketing Innovation In India


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India is the second most populous nation on earth and one of the world's fastest growing economies (the 4th largest in terms of purchasing power). But it has in particular problems for marketers: 6 …

India is the second most populous nation on earth and one of the world's fastest growing economies (the 4th largest in terms of purchasing power). But it has in particular problems for marketers: 6 major religions and 23 languages, for example.

So, if you're a Multi-national Company (MNC) facing issues in India or considering market entry, what should you be thinking about?

Published in: Business, News & Politics
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  • Very well done. But it will be outdated VERY quickly because SO much change is happening SO fast, even politicians (the ultimate and most cunning Marketing types) can't hold on to their seats! Change is afoot. Tastes/behaviors can and do change.
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  • 1. How to think about marketing innovation in India
  • 2. Content
    • 01. Introduction
    • 02. Understand the Indian consumer
    • 03. Understand the country dynamics
    • 04. Common reasons for purchase
    • 05. The rule of thumb
    • 06. Conclusion
    • 07. Notable case studies
  • 3. 01 Introduction
  • 4. Key facts
    • The seventh-largest country by geographical area
    • The second-most populous country worldwide
    • The most populous democracy in the world.
    • A republic consisting of 28 states and seven union territories.
    • A pluralistic, multilingual (23 languages), and multiethnic society
    • It has the world's twelfth largest economy at market exchange rates and the fourth largest in purchasing power.
    • Economic reforms since 1991 have transformed it into one of the fastest growing economies
    • However, it still suffers from poverty, illiteracy, disease, and malnutrition.
  • 5. Key Value Differences Between India And The West
    • Patriarchy
    • Ambiguity, adaptability,
    • low dissonance
    • Socially defined roles, dharma
    • (know what your DNA is and what type you are and play accordingly, or you will be unhappy)
    • Patience, passivity, vairagya
    • (renunciation – especially of sexual pleasure, being the ultimate prescription for happiness)
    • Continuing with tradition
    • (in some hybrid or morphed form or other)
    • Respect for age
    INDIA THE WEST (source: Rama Bijapurkar, 2008) Egalitarianism Clarity, linearity (need for resolution of contradiction, of choosing between opposite positions) Individually chosen roles (you can become anything you want to be) Impatience, assertion (Viagra – the celebrated new drug to treat impotence and enable enjoyment of sexual pleasures) Seeking novelty Respect for youth
  • 6. The rising Indian Middle class
    • The growing Indian Middle class
      • 2005: A small middle class comprising of just 5% of the population or 13 million households
      • 2025: A robust middle class comprising of 41% of the population or 128 million households
    • Urban India
      • By 2025, 62% consumption will come from Urban India accounting for 2/3rds of the future growth
      • ‘ Urban’ would not just be Delhi and Mumbai but a lot of middle and small tire cities would also be upgraded as being Urban and comprise of the ‘Indian middle class’
    • Climbing up the class ladder, becoming the ‘Indian Middle Class’
      • Deprived:
        • Are expected to decline and climb up the ladder to become part of the Aspirers.
      • Seekers:
        • Will increase their spending on ‘choice driven’ categories like apparel, personal products, household products, automobiles, 2 wheelers, communication and recreation
      • Strivers:
        • Post 2022 there will be a gradual reduction in the seeker class as there is income mobility upwards. In the second half of the second decade there will be a sizable striver class
      • By 2025 the urban middle class (Seekers + Strivers) will have unprecedented growth from just 7 million or 12% of urban households to 87 million or 76% of urban households in 2025.
      • Upward mobility would become the key characteristic of a majority of Indian consumers, a key point to be kept in mind for future marketing strategies
    (source: McKinsey Global institute
  • 7. 02 Understand the Indian consumer
  • 8. Understanding the people
    • Lifestyle of the middle class in India (Delhi, Mumbai, Chennai)
      • Increasing number of nuclear families in urban areas
        • Increasing trend of having 4 or fewer family members comprising of couple and an unmarried child (children)
      • Use of automobiles and PCs yet to become popular
        • People in Delhi: mostly use motorcycles or public transport. 50% of the middle class own a car
        • People in Mumbai: mostly use the railways. 17% of the middle class own a car.
        • People in Chennai: mostly use motorcycles. 15% of the middle class own a car.
        • The use of the information technology is still low even in the larger cities, but is growing at a phenomenal rate.
    • The attitude of Indians
      • Towards their country
        • High pride for their country. Respect their symbols, concepts and traditions.
      • Towards elders
        • High degree of respect, for example touching elders feet to get their blessings
      • Towards other people (co-workers, employees, friends)
        • Maintain harmony, by building trust and discussing the difference in opinion
      • Towards life
        • Play an active role in heralding change for yourself, your family and country. Dreaming is legitimised and even encouraged.
    • The Indian youth
      • Influenced by the west: Internet, travels abroad, movies
      • Brand conscious and price sensitive
      • Looking for cool, trendy and latest products
      • Ready to work hard to earn a good living
        • ‘ Want to prove myself’ attitude
    source: ‘Marketing Strategies Targeting the Middle Rich in India’, Nomura Research Institute,2008
  • 9. Likes and Interests
    • Common Passions
      • Bollywood
      • Cricket
    • Common free time activities at home
      • 98 per cent of the individuals watch TV;
      • 70 per cent read English dailies;
      • 55 per cent use the internet at home;
      • 54 per cent listen to the radio
    • Common outdoor actives
      • Watching a movie at the cinema
      • Dining out
      • Shopping. Nine in ten prefer to shop at modern retail stores
      • Playing cricket
      • Going to the gym
      • Going to the spa and beauty parlors
    Is the key frame of reference for India (especially the younger generation) on what lifestyle ideals and characters to aspire to Source: Nielsen Global Report, Upper Middle and Rich (UMAR) survey India
  • 10. Adapt to their tastes and preferences
    • The Indian taste bud is very different from any other country. To survive and be successful here, it is very essential to mold your product offering to appeal to the target
      • Think global and act local is the key to success in India
    • Adapting to the needs and the preferences of the people
      • McDonald's
        • Globally known for serving hamburgers, beef and pork, but as most Indians do not consume beef or pork due to religious constraints McDonald's tailored its menu to suit their needs and added Chicken, Fish and Lamb as part of the menu
        • India is the only country where McDonald's offer a 100% Vegetarian option to cater for the majority of the population
        • "Today 70 percent of our menu is ‘Indianized', and the McAloo Tikki burger is our highest selling product. While the menu may be different in some ways, the McDonald's experience around the world is consistent, offering quality, great service, cleanliness, and value.“said Vikram Bakshi, Managing Director of McDonald's India North
      • Pizza Hut
        • Initially, the company struggled in this market, primarily because the [standard Italian] toppings which were completely alien to Indian taste buds . "But with the launch of a Tandoori Pizza," says Alok Lall, General Manager of Saatchi & Saatchi in New Delhi , "the results were amazing” - store traffic quadrupled.
        • But there are some parts of the global brand that they do not want to change, such as air conditioning, the quality of ingredients, and customer service.
  • 11. Who influences purchase
    • Across the country the top 2 drivers which influences purchase
      • Friends and Family (the society): Word of mouth
      • TV commercials
    source: ‘Marketing Strategies Targeting the Middle Rich in India’, Nomura Research Institute, 2008
  • 12. Key drivers for increase in purchase in the future
    • Key drivers for consumption growth (2025)
      • Rise in income/person: will count for 80% of the consumption growth
      • Increasing population will contribute to the young demographic profile of the country
    • Consumer spending
      • Currently maximum consumer spending is on food, beverages, tobacco (FT&B); transport and housing.
      • 2025: a move in spending from basic necessities to discretionary items
    Source: McKinsey Global institute
  • 13. 03 Understand the country dynamics
  • 14. Cultural Specifics Across Regions
    • In a country which has 23 official languages, six major religions and is spread throughout 25 states, the tastes, preferences, attitudes, buying habits and lifestyle are bound to be different. Due to the same, it becomes essential for marketers to understand the intricacies of each major region and mould their product and communication based on the local preferences.
      • Case study : Rexona soap Unilever, the best selling soap of Unilever in South India. Understanding the dynamics of the region Unilever has very smartly modeled its communication, variants and promotion to appeal to this target segment in just the South of India.
    • The Pragmatic Mumbai (West) - A business hub
      • Ruled by the attitude of “time is money”… Also a city that never sleeps – 24x7 businesses, active nightlife..
      • A city where ambitious are constantly soaring, people wanting more and the most out of life and any situation.
      • Technology driven – gadgets and gizmos very important
      • Most Mumbai-ites are practical, pragmatic.. While show of wealth, status are important signifiers
    • The ostentatious Delhi (North) - The political hub, the centre of reform, policies…
      • Old census suggests employment in government (union and state) / public sector higher.
      • Growing manufacturing industry and service industries - information technology, telecommunications, hotels, banking, media and tourism.
      • One of the most buoyant and dynamic retail industry (first ever luxury goods mall in India opened in Delhi)
      • A show of wealth, status very important to earn respect in ones social circle
      • Making Delhi-ites a lot more materialistic and with a strong need to acquire the new and the latest.
    • The traditional and conservative Chennai (South)
      • India's second largest exporter of software, information technology (IT) and information-technology-enabled services
      • Economy is dominated by the automobile industry, technology, hardware manufacturing, and healthcare industries.
      • A lot more traditional market – driven by customs, religion & traditions.
      • South skew - conservative consumer market: discerning consumers, save vs spend a constant battle. Emphasis on financially securing one’s future, planning ahead very strong in the South markets.
      • Education, good job / career given a lot more importance.
  • 15. The distribution channel in India
    • It is very essential to understand the very complex and highly fragmented distribution network in India, to successfully enter the market and ensure deep penetration
    • Manufacturers and retailers have to grapple with fragmented markets and a plethora of channel resulting in a constant state of flux . The biggest unregulated channel of the Small Retailers comprise of
      • Street-side vendors
      • Hawkers
      • Approximately 12 million unregulated neighbourhood mom-and-pop
    • The key to ensure an efficient supply chain is to have your own distribution network suited for your product and supply chain rather than relying on JVs or adopting a common model.
    Manufacturing Unit Storage Hub Distributor Wholesaler Malls/ Supermarkets Retailer Small Retailer
  • 16. The Rural Bharat and Urban India
    • India has 2 economies
      • The rapidly growing Urban India housing the world’s best IT firms and the world’s biggest slums
      • Rural India, which still depends on subsistence agriculture
    • Due to the vast difference in the economies, lifestyles, tastes and accessibility, different strategies have to be adopted to enter each segment. Strategies would differ based on
      • Product:
        • Rural Bharat: Basic necessities.
        • Urban India: Discretionary items and basic necessities
      • Price:
        • Rural Bharat: very price sensitive, extremely inelastic, the lower the price, the better
        • Urban India: looking for the price quality balance. Just low price is not sufficient
      • Promotion:
        • Rural Bharat: One to one education, TV, local events and festivals.
        • Urban India: 360° promotion
      • Placement:
        • Rural Bharat: small ration shops, hawkers, local markets. Making the distribution channel very difficult and far flung. Local and efficient distribution is essential to ensure penetration
        • Urban India: all modern trade channels, making the distribution easier and manageable.
  • 17. The 4 As rule for innovating in Rural India
    • Availability
      • Ensure high network of service centers and personnel
        • LG: 230 service centers, 65 remote area offices, 2600 mobile service personnel
        • Coca cola: has evolved a hub system in Rural India to ensure full supply
        • Hindustan Unilever: to serve remote villages they use all forms or means of transportation from rikshaws and bullock carts to boats
      • Supply chain management: due to lack of connectivity it is very essential to have efficient and effective SC
        • HUL Shakti: using rural women as disributors of HUL products
        • Tata: uses NGO network to distribute products
        • Reliance Retail: uses procurement from local villages to supply to the neighboring cities
    • Affordability
      • Provide cheap prices by introducing smaller unit packs
        • Godrej: introduced its key proposition in soaps and fairness cream in 50 gm packs for Rs 4-5 for Madhya Pradesh, Bihar and Utter Pradesh
        • Coca cola: grabbed the rural India market share by introducing returnable 200 ml glass bottles of Coke for Rs 5, to bridge the gap between soft drinks and locally available options like tea, lemon water and butter milk
        • Hindustan Lever: launched its best selling soap Lifebouy at Rs. 2 for 50 gm
        • LG launched its first low priced TV for Rs 3000
  • 18.
    • Acceptability:
      • Offer tailor-made products suited for the needs and lifestyle of the market
        • Coca Cola: understanding the problem of lack of electricity and refrigerators in rural areas, Coca Cola provided low cost ice boxes and thermocol boxes
        • HDFC: tied with NGOs to offer low price insurance covers
      • Easy to understand
        • LG: introduced regional language games in its low cost TV
    • Awareness
      • The means of awareness is very different in Rural India in comparison to Urban India
        • One to one contact program: Use of personal interface is very important to gain trust, demonstrate, induce trial and educate
        • Promotion:
          • Entertainment
            • Cultural events example religious plays and performances
            • Dances, folk performances
          • Local annual fairs
          • Annual Hatts (local marketplace)
          • Weekly Marts
          • Mobile vans
    The 4 As rule for innovating in Rural India The local market place in Rural India The Coke advert in Rural India The mobile LG van The LG exibit in a fair
  • 19. 04 Common reasons for purchase
  • 20. Value for money
    • The Indian market is no longer a sellers market but is now a buyers market. The winner is the one who provides value for money.
      • This is the sachet country where the consumer as the king would like to try the product first before investing and purchasing a bigger pack
    • The most important criterium for any product to be acceptable by the Indian middle class is the Price-Quality balance
      • Just low price = cheap, bad quality in the minds of the middle class consumers
      • If the product is just low price it would have to justify itself
      • Case study: Tata Nano which is not advertising the Nano as a low priced car, but a good looking, highly functional car.
    • The consumers are not just going to pay for the brand name. They are looking for ‘good quality’ as well.
    • Product durability
      • Consumers in Indian are willing to even pay a little more provided the product promises durability.
  • 21. Status symbol
    • In a country where the general attitude of the people is to prove themselves and move up the social ladder, constant status symbols are seeked to showcase their success or their place in the society
    • Common status symbols
      • Car
      • TV
      • House
      • Branded apparel
      • Mobile phone
      • Laptop
      • Holiday abroad
    • The symbols and display of wealth would differ in the kind of symbol and how the display is done with respect to region
      • Delhi: most materialistic with a high ‘show off’ attitude
      • Mumbai: more brand conscious
      • Chennai: least materialistic in comparison
  • 22. A new and innovative product
    • With a gradual increase in purchasing power the Indian middle class is very open to new innovative products and experiment with change, be in the form of a new service, affordable FMCG product, a new restaurant or technology
    • The only underlying condition being that it should be a value for money proposition
    Donut Factory now has outlets in New Delhi Frozen yogurt brand Cocoberry is now in Delhi and Mumbai Unilever’s Cif is trying to create a new category in the Home care Nokia N96 is today the largest selling smart phone in India
  • 23. 05 The Rule of Thumb
  • 24. The Marketing Mix
    • Your product should be an international brand with an Indian heart .
      • Price (value for money, balance between low cost and good quality)
        • Case study McDonald's India: value pricing and bundling strategy, Happy Meal, Combo Meal, Family Meal which helped drive sales’ volumes.
      • Pack (local terms, appealing graphics)
        • Case study Coca Cola India: Associated the term ‘Thanda’ (cold) with coke, the term is a generic one which is used to refer to anything cold in North India. To make Coke part of the common culture they ran campaigns to get people to associate ‘Thanda’ with Coke as well.
      • Promotion (Movies, bollywood and tollywood actors, local icons, sports) difference in promotion tactics based on region
        • Case study Gillette India: Use of sports as key promotion vehicle, use of Rediff (India’s leading website for news and mail) and Zapak (India’s leading geaming website) to market its product
      • Placement ( supermarkets, local groceries, all modern trade channels)
      • Positioning
        • Case study ITC Fiama de Wills Shampoo: entering an over crowded category dominated by MNC brands, ITC noticed that products are divided based on Cosmetic and Natural offering. They decided to combine these 2 benefits and offer the best of both worlds.
    • Once all these criteria are met then the middle class Indians will become purchasers with a high degree of loyalty to a specific brand
    Gillette advert with Cricketer Rahul Dravid
  • 25. The different approach
    • Understand the needs of the people and customize product/ communication innovation based on that
      • Aircel: Telecom, started its journey in Mumbai and is now in all other metros.
        • Putting up the IPL Scoreboard at the Mahim Causeway which enabled commuters at the busy Mahim Causeway to keep track of the latest Cricket scores. Creating buzz via the passion that drives the country
        • Putting up an inflated raft at Milan Subway in Mumbai, an area which sees a lot of flooding every year. The message simply said, "In case of emergency, cut rope".On July 13 and 14, when heavy rains lashed the city. People stranded at the subway used the raft to move around and men in Aircel branded T-shirts were also available to help commuters.
      • ChotuKool by Godrej: Cheapest refrigerator
        • Understanding the need for a cheap, lightweight fridge which consumes less electricity Godrej came up with the cheapest refrigerator worth Rs 3250/-
        • Innovative distribution strategy: they employed village girls to distribute the product, increasing trial and reducing costs by 40%
    Aircel print advert on the Mahim causeway, Mumbai Use of the Aircel boat with Aircel representative during the July rains in Mumbai Godgej ChotuKool at a local shop in Rural India
  • 26. Blunders to avoid
    • Avoid probing political issues
      • Case Study, Microsoft: To showcase the high definition of the colors in the Windows 95 operating system, Microsoft highlighted areas in Kashmir in a different colour to say that they are disputed territories, understood in India as Non Indian. Resulting in the product being banned in India.
    • Our heroes are our idols
      • Case Study, Pepsi India: In a advertising war with Coke, Pepsi made fun of their brand ambassador Hritik Roshan (a very popular Bollywood Star). Taking serious offence, the Indian consumers who are more loyal to their stars adopted the anti Pepsi campaign.
    • The wrong brand ambassador
      • Case study L'Oreal hair color: when L'Oreal introduced its hair color products in India they had Aishwarya Rai as their brand ambassador, the ad clearly said ‘remove greys’, now would that be called good marketing, making the consumer think that Aishwarya Rai (the beauty queen) has grey hair?
    • Bad after-sale services
      • Case study, GM Motors Opel Astra: In a country where good services and convenience is a given, Opel Astra failed due to non compliance to this basic rule of survival in the Indian market. GM reentered Indian with the Chevrolet brand and developed its own dealership network to alter past mistakes.
    • Wrong positioning
      • Case study Honda Unicorn: a long awaited product in India which went all wrong in its positioning when they had the advert featuring a gentleman driving the 150 C.C to go to work. NO NO NO, this product is aspirational for the young ruddy bikers who wanted a sexy powerful bike to get the girls. Wrong positioning lead to decline in sales and the competitor taking away the market share.
  • 27. 06 Conclusion
  • 28. Possible strategies for the future
    • Develop new products and services appealing to the Indian middle class
      • High on functionality on features which matter
      • Strip off features which do not add value but just add cost
      • Have an aspirational image attached to the product/ brand
      • All this offered at a competitive price
    • With an increase in the middle class who have new money and are willing to spend the companies must invest in impactful marketing efforts to
      • Educate them
      • Establish and retain brand loyalties
      • Keep up with the change in consumer tastes and technology
    • A subtle balance should be maintained between the emotional and functional side of the brand / product
      • The mainstay Indian consumers however—often torn between competing category alternatives, needs evidence of concrete utilitarian benefits before they consider feel-good extras. The following are the most common claims:
        • Made for India (localised)
        • Product or design-led marketing
        • Reliability and trust
        • High resell value
      • Case in point
        • Coke: cool refreshment.
        • McDonald's: fast, clean, and easy for families to enjoy together.
        • Citibank: stores money and offers trust.
        • Vodafone: sell GSM technology which connects you to your friends, family, and business associates.
    • Or offer products and services comparable to those in other markets, focus on top end which is still relatively small today and wait for the segment to grow and the income levels to rise
  • 29. 07 Case Studies
  • 30. Cadbury Dairy Milk: Made Indians eat chocolate to celebrate
      • Cadbury’s winning proposition in India is the classic Cadbury’s Dairy Milk. In an effort to make chocolate a generic term
      • for ‘something sweet’, CDM has managed to make people eat and offer chocolate to celebrate the good things in life.
      • Product
        • Same product, but experimented with formats to target children and price-conscious consumers
          • Cartoon character shapes to attract kids
          • Mini pack to reach out to the lower middle class
        • With the recent launch of new variants under the sub brand Silk, CDM has started to stretch upmarket
      • Price
        • With a broad offering in terms of format and price, the brand manages to reach out to all sections of the population: the range starts from Rs. 5 and goes up to Rs. 90
      • Promotion
        • Constant and effective brand building to increase the brand salience
        • Broad palette of execution from real-life situations, to emotional, fun- and festive-centric communication to teaser and online promotion
        • Initially used the biggest Superstar in the country (Amitabh Bachchan) as their brand ambassador: but, CDM has maintained its own strong personality and avoided the trap of being overshadowed by the actor
        • Currently, CDM is moving away from icons to use real-life characters with highly innovative story lines - to give the brand more personality and make it easy to relate to
      • Placement
        • Easy availability through all trade channels
      • CDM is highly mature in terms of product life cycle, but thanks to constant reinvention and highly innovative communication, the brand continues to generate consumer engagement.
  • 31. Hyundai Santro: Slow and steady wins the race
      • Hyundai entered the Indian market in 1998 when Maruti Suzuki held a monopoly position. Hyundai faced a tough
      • challenge - a Korean brand , with an absence of corporate image and product design which didn’t work for the Indian
      • consumer.
      • Product
        • Smart move of entering the country with a hatchback rather than a sedan. The consumer had grown bored of the Maruti offerings and saw this as a welcome change
        • Turning disadvantage to its advantage, Hyundai positioned the Santro on the design aspect
        • Evolved their positioning over time from being well designed to a family car, and gradually to a more sporty positioning
        • Timely product improvements and upgrades
      • Price
        • Smartly priced, within reach of the target consumer who wanted to upgrade to the B segment
      • Promotion
        • Their masterstroke was the brand ambassador Shah Rukh Khan (the Indian Superstar) who did a number of commercials and product placements to win the trust of the Indian consumer and make them accept a Korean car brand
        • Continuous brand building
      • Placement
        • Built their own service network and distribution channel, making the product easily available
        • Easy availability of spare parts and convenient service stations
      • The Hyundai Santro was the second best-selling car in India within 4 years of its launch. Today, it’s at the end of its product life cycle but it succeeded in establishing Hyundai in India. Today, even though the market has become very competitive in the hatchback segment, Hyundai enjoys a very strong corporate image and the trust of the Indian consumer
  • 32. Renault Logan: Except for price, they got it all wrong
      • Product
        • Styling not well suited to Indian taste
      • Price
        • Correct pricing, offering value for money
      • Promotion
        • No aggressive promotion
        • Lack of brand building post initial launch
      • Placement
        • Lack of dealership push
        • Should have built its own dealership network even if it would have taken time
      • Other key factors
        • Rocky Joint Venture
          • Different JVs with different players for different types of car in the same market
          • Instability in JV deal decreased consumer trust towards the brand and its future services
        • Official Reasons
          • “ it is more expensive than we hoped it would be in India, the market here is extremely sensitive to the price”.
          • “ we don’t have enough localisation in India”.
      • Improvement efforts
        • Plans to set up an independent distribution network to support its new products.
  • 33. Apple iPhone: Over-confident?
      • Apple got it wrong in India, generating a lukewarm response to an iconic product of our times
      • Product
        • Ambiguous positioning
        • IPhone was positioned as a lifestyle product but in India, the company or its license holders did nothing to make it seem aspirational
      • Price
        • At a price of over Rs 35000, the brand was virtually out of reach for many aspiring consumers.
        • For those who could afford such a price, iPhone did not match their value proposition.
      • Promotion
        • Negligible marketing communication
        • Very weak consumer confidence, due to lack of marketing efforts
      • Placement
        • Licensed the iPhone to service providers who didn’t have any experience in the retail selling of handsets.
        • These service providers decided to sell the handset only at their outlets, thereby limiting its availability
        • Lack of dealership push, companies couldn’t pitch it to the potential consumers aggressively
      • Apple did succeed in opening the doors of the Smartphone universe in India to Nokia who came in with the N97, a well priced, well communicated proposition, grabbing 60% market share in the smart phone market
  • 34. Garnier 2 in 1 Shampoo: Convincing the Consumer to Think Differently
    • Background
      • Indian consumers traditionally oil their hair the night before washing, to lubricate and give it shine
      • The following morning, shampoo is used and the oil removed
      • So, shampoo and oil do not naturally go together in one product
    • Challenge
      • Can Garnier convince the consumer that shampoo and oil can go together as a 2 in 1 proposition?
    • Does the product meet the needs of the consumer?
      • Yes
      • The oiling and shampooing tradition is time –consuming: time which consumers today do not have
      • If this product suits both needs and shows equivalent results as actual oiling it would be accepted
    • Does the product already exist in the market?
      • No: it’s new and unique
    • Result
      • Due to its uniqueness, the product has induced trial
      • The acid test for consumer retention is the actual product quality and effect
  • 35. Kellogg India: Ask the Basic Questions
    • The challenge for Kellogg’s Cornflakes
      • To introduce the Indian consumer to cornflakes & cold milk for breakfast
    • Traditionally what is consumed during that time of the day?
      • Hot home cooked breakfast (cheaper, better)
      • Hot milk
    • Is the product in tune with the cultural component of India?
      • No: traditionally used to drinking hot milk and non processed food, cornflakes represented a big change for the consumer
    • Could the product fit with traditional consumer habits or did it need to create a new habit?
      • The Indian consumers are used to having hot milk in the morning, and they stuck to their habit
      • The result was… they put hot milk on the cornflakes, making them soggy and unappetising
    • How to create a new category/ habit amongst the consumers for breakfast
      • Implication: create a new habit by educating the consumer, or adapt the product to work with hot milk
      • Target the correct people: those who are working do not have the time to cook (Western influence)
      • Emphasise, reinforce and educate on the differentiation factors
      • See what the current traditional offers are lacking and build on that: for example, nutrition, fun, variety, something new, convenience