story telling using data

1. Story-telling using
Data
A Corporate Success Story

2. A large Indian company in FY2001-02
• One of the largest FMCG companies in India
• An undisputed leader in one product category, but have very limited presence in other
categories
Which other product categories do they enter?

3. The Background
• They had nearly 75% market share in cigarettes
• However, cigarette as a category, started facing
several restrictions
• So, in the long-term, it would be very difficult to
grow in such a market
PROBLEM:
We are essentially a single-product company, with 90%+ revenues and 98%+ profits coming from that
product. The product category does not present much future growth potential

4. A comparison with the largest FMCG company,
then: FY 2001-02
ITC HUL
Revenue: FY 2001-02 Rs. 4,208 Cr Rs. 10,668 Cr
ITC’s revenue was around 40% of that of the leading FMCG company in India

5. ITC in 1980s
A prominent advertiser of its flagship brands – in newspapers, magazines, hoardings

6. ITC in 1990s
But then… the market of cigarettes gradually became “dark”
Advertising in press, hoardings and even sponsorships were not allowed post 2003
Official sponsor of cricket World Cup 1996

7. Need to diversify to other businesses
But where?? Which product categories? With what kind of brands?

8. CAN A DATA-DRIVEN APPROACH BE TAKEN?
• Being the largest spender in Market Research, had access to lot of data
• It was important to look at synergies with existing businesses
Need to diversify to other businesses

9. Let’s look at it from the standpoint of one of the first
brands launched…
WHY POTATO WAFERS? WHY BINGO?

10. In what kind of shops can Bingo be available?

11. What is the kind of potential that Bingo had, if sold only
through cigarette selling outlets?
Here comes Data-driven Decision Making

12. Data-driven decision making
A look at some data, using important Metrics related to cigarettes
• What is the % Incidence of regular cigarette smoking among adult (18yrs+)
males in India?
“Regular cigarette smoking” being defined as smoking at least 3 sticks a day, at least 5 days a week

13. Data-driven decision making
Market Research from very large studies in India showed, 8.2% of adult
males regularly smoked cigarettes in 2003
Bidi smokership and Gutkha usership – much higher (primarily rural based)
But even 8.2% translated to approx 4 crore smokers in India

14. Data-driven decision making
Other important metrics in the context of cigarette smoking
ASB (Average Smoking Behavior) ~ 10
[ASB = Number of cigarettes smoked by an average smoker, per day]
MOP (Mode of Purchase of cigarette): Sticks = 94% & Pack = 6%
 India is primarily a “stick buying” market
No. of sticks purchased (Mode) = 2 sticks per purchase occasion

15. What does this lead to?
An average smoker has to go to a cigarette shop 5 times a day
i.e. 150 times a month OR 1800 times a year
A typical FMCG buyer (of soap, hair oil, etc) visits a shop once or twice a month
i.e. 12 – 24 times in a year only!!!
…A TREMENDOUS OPPORTUNITY

16. What does this lead to?
If this company stocks Bingo in even 50% of cigarette shops in India and creates
that “IMPULSE” about that brand… and if x% of the smokers try Bingo once
and some of them repeat
Few 100 crores of business for Bingo!

17. What all come to your mind when you think of
the brand Bingo?

18. • Crazy, mindless ads: “Crunch test” ad
https://www.youtube.com/watch?v=pL7KEnJ-kQw
• Mad angles  innovative shape
• Different flavours  innovative / localized
• Attractive packaging
“Mad angles” ad: https://www.youtube.com/watch?v=srnIEXnUrfA
“Pout of control” ad: https://www.youtube.com/watch?v=BaT6X6N5l3A “Accent ad”
https://www.youtube.com/watch?v=h1wF0-N65Ak
What all come to your mind when you think
of the brand Bingo?
WHAT DO ALL THESE LEAD TO?

19. Everything about Bingo was to do about creating
“IMPULSE PURCHASE”!

20. …and we now have a very successful brand in the market
This kind of number crunching was done rigorously at every
micro-market level at the planning stage….

21. With Sunfeast, Bingo, Vivel, Yippee and several
other successful brands now…
ITC HUL
Revenue: FY 2019-20 Rs. 47,839 Cr Rs. 37,660 Cr
ITC’s revenue is 127% of that of HUL as per the latest Financial Year
A comparison with HUL, now: FY 2019-20

22. A more detailed look at the diversification to
other FMCG

23. Sunfeast
• One of the earliest launches – Sunfeast range
of biscuits
• It always stood for quality. Also known for
offering innovative and wholesome biscuits
• Sunfeast look at a two-pronged strategy - high
margins in premium variants and volumes
from the Marie and Glucose segments
Bingo!
• Bingo! was launched in March 2007 with a
wide range of exciting packaged salted
snacks
• It primarily targets 18-30 year olds people,
who are willing to try out new flavors
• Positioned as a youthful and innovative
snack.
Home-grown brands of ITC: From 2003 to 2010

24. Vivel
• Launched their foray into Personal Care products
with Vivel in 2008
• Vivel is committed to creating products that deliver
nourishment for the skin and hair
• Currently has a range of soaps, shampoos, face
wahes and related products
• ITC entered the instant noodles segment with
the launch of Yippee! in 2010
• It based on clear benefit positioning over
Maggie and its advertising storylines re-
emphasises that
• Currently has a range of instant noodles, pasta
and related products
Yippee!
Home-grown brands of ITC: From 2003 to 2010

25. Brands acquired by ITC after 2013

26. “The proof of the pudding is in the eating” – Miguel Cervantes, History of Don Quixote

27. Creating immense shareholder value over the long-
term, after 2003…

28. Storytelling using Data: A Prelude
• Data is getting generated by organizations, machines and individuals in large
volumes and at a very fast pace today
• Data storage has become affordable, Data processing power has improved
• The Need: How to generate insights from this processed data and effectively
communicate it to different stakeholders for decision making

29. What is “Data Storytelling” as a subject?
• Data storytelling is the subject of
communicating data-driven information
- With effective visuals and
- Compelling narrative
• It ensures higher user-adoption of
business analytics

30. Skills required to be a “Data Storytelling” expert
Skills in Traditional
Areas
Analytical Skills
- Critical thinking
- Problem solving
- Data Analysis
- Statistics
- Business Intelligence
UI/UX Skills
- Cognitive Science
- User interface design
- Colour theory
- Information graphics
Data Visualization skills
- Knowledge of charting
- Data Visualization tools
- Visual storytelling
Skills in New Areas

31. Thank You!