SO FAR, MARKETERS HAVE LARGELY PAID ONLY LIP SERVICE TO THE CULTURAL DIVERSITY WITHIN INDIA. IT’S TIME THEY DO MUCH MORE TO LEVERAGE IT TO THEIR ADVANTAGE

Companies are worried about the coveted FDI regulations for this market. Economists are worried about its massive poverty indicators and growing inequality. Politicians are worried about their next elections as usual, but perhaps much more today about simply getting caught! Business in general is worried about favourable government policies and reforms and also about the appalling Indian version of the term “infrastructure”. And on top of all these, the common man is worried about (including infrastructure, of course) rising prices on all fronts, corrupt and inefficient systems, uncertain markets, lack of a social security net… the list is quite endless.

Welcome to “Incredible India”, the term itself a perfect fit for this country, and not just because the words are catchy and rhyme well. It’s also because of their meaning. Not great, or awesome; but ‘incredible’, in simple terms, hard to believe. And that’s how intellectuals at different points of time have described the ascent of the Indian economy.

Nevertheless, marketers love stories, and the Indian story attracts them like few do. Goldman Sachs’ BRIC report laid the groundwork followed by many others. Another exhaustive report by McKinsey in 2007 gave some important indications of where India could potentially be. It projected, with an assumed CAGR of 7.3%, that India would triple its income levels by 2025. That will bring around 291 million people out of poverty and the middle class will rise by ten times over the period to around 500 million. What’s more, 23 million people would count among the wealthy, which would be more than Australia’s current population (around 22.7 million, Australian Bureau of Statistics, October 17). And the most exciting part, of course, is that the country has a combined young & working age population (14-60 years of age) that comprises nearly 54% of the total (UN, 2009 figures). Another 31.3% are in the wings to enter this group (age 0-14 years). India’s working age population is expected to edge out China by 2028.

This is a brief of the larger India story that marketers across the globe have grown to believe; and all it seems to say is that – unless you want to be a bit player on the global stage a few decades from now; it’s imperative that you invest in India. Of course, it’s a great story for shareholders of a number of MNCs as well, who have been terribly short of good news lately. However, before you hop on to the India bandwagon, you have to understand the fact that although the macro picture makes a valid case, it’s very easy to get lost in a maze if you are unable to grasp the intricacies unique to this market.

One of the most critical and overlooked aspects of this market is culture. Generally, marketers and analysts have attempted to either club the entire India as one (using economic segmentation) and look for a unifying theme, or considered it just too diverse to really merit the time and energy in segmenting it in this manner. Either approach is dangerous. In fact, my ongoing research provides compelling logic that supports the existence of India as 4 nations – North, South, East & West – and this has profound implications for today’s marketers. These divisions have a strong historical context and continue to be extremely relevant even today.

CONSUMER PARADIGMS

Art is a very apt reflection of life. And if you look at our movies, there are a number of stereotypes that have been used to define Indians in different zones. A Punjabi is often pictured as brash, impulsive, imposing and ready to pick up a brawl, or even join an ongoing one for company sake! Conversely, a person from Tamil Nadu is pictured as relatively submissive and also deeply rigid about his style of living. Mumbai residents are typically shown as immensely practical and down to earth. And a person from the city of Kolkata will be portrayed as too passionate about his state, ready to revolt at the slightest excuse and be ready for an intellectual solution to every problem, if not a practical one.

While extreme, these stereotypes are not without basis! Some research into consumer buying habits also brings out some vital differences in the four zones. A small perception-based survey across 4 metros revealed some interesting characteristics. West Bengal, for instance, has a strong history of revolution, and they harbor a fierce sense of pride in their culture. They are highly intellectual and able to achieve their goals (financial or otherwise) through proper planning. Purchases made by them are skewed towards long term assets like real estate. New Delhi has been an epicenter of power and also attracted a mix of cultures from across India, with a larger influence from the neighbouring states of Punjab and Haryana. There is a great obsession with earning money, and perhaps an even greater one with flaunting it. Down south in Chennai, one sees a conservative society that has a deep sense of traditionalism as well as a bit of a colonial hangover. Higher education rates and rise of industries like IT here have attracted wealth to a great degree from abroad, and people here do invest in certain luxuries as well. But customs and traditions are strong influencers, visible with the amount of jewellery they buy; an integral part of traditional attire. When you look west in a city like Mumbai, there is a very strong influence of the British Raj as well as of the traders that frequented the city’s shores. The city works strongly on the ‘time is money’ mentality and is tremendously practical and pragmatic; a vivid barometer of which are the local trains, used by people of all economic classes.      Read More....

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM ranked No 1 B-School in India
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IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM in sync with the best of the business world.......
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

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We are a nation that lives and breathes cricket, yet many feel that they are now getting an overdose of it. The 15-20 year olds today do not identify so much with cricket. They want something different, something fast and something trendy. Formula One seems to be the answer.

CARS VS CRICKET FOR SPONSORS

Kingfisher went ballistic with the promotions of its beer at the Indian Grand Prix held in Noida last month. Airtel was the title sponsor of the event. It ended its sponsorship of the Champions League Twenty-20 cricket even before the three-year deal ended. For a nation that is obsessed with cricket and for a sport that dominates advertising in India, when a big sponsor like Airtel backs out, is it an indication that things are changing? Is cricket facing boredom? Is there oversaturation of cricket? Perhaps. Think about it, Neo Sports, the official broadcaster of the India-West Indies series gave a 40-60% discount for a 10 second ad spot; add to that the falling viewership rating of the sport and you have your answer. Today, advertisers are looking for big sports properties other than cricket. Agreed, cricket was and will remain a religion in India, but the youth wants something more, and F1 is the sport that’s fashionable to follow and appeals to the young and restless. In spite of initial scepticism, the inaugural Formula One race was a success. To the surprise of many, the 3-day event drew a crowd of 95,000 spectators on race day.

FORMULA FOR SUCCESS

When it comes to sports, India has never really left a lasting impression. Except for cricket, there is hardly any other sport where it stands out. When it comes to international sporting events, then most often we have been left red-faced. Take the Commonwealth Games for instance, which generated a lot of bad publicity for India, and showed us in shoddy light. In contrast, the inaugural F1 race was loved by all. Finally, an international event was executed flawlessly by India. With only private players and with no government support, the event did well.

It makes complete business sense to be a part of the Formula One event. It offers global reach to both sponsors and fans alike. F1 is a far more lucrative sport than cricket. It has a reach that is much wider than cricket. The Indian Grand Prix was telecasted to 550 million viewers in 200 countries. It provides a global platform to brands, which events like T20 cricket fail to do. Consider this, there is zero audience for cricket in major economies like France, Germany, Italy, Brazil and Russia. At the end of the day, it is imperative for any sport to reach out to more people and F1 has that mass appeal.

Today, growth in businesses is going to come from emerging market like Brazil, China etc, and cricket does not excite many of them. If a global sponsor has to reach them, he needs a sport like F1 with a more global appeal. Indian companies are going global too. Many of our home-grown brands are growing fast and becoming big players in the new emerging markets.      Read More....

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM in sync with the best of the business world.......
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

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Last month, a beautiful film named Dolphin Tale hit the theatres. Based on a true story, it’s a ‘tale’ about a dolphin without a ‘tail’. It’s the story about a young boy’s efforts to convince scientists to create a prosthetic tail for this dolphin named Winter , whose tail had got amputated. In doing so, he not just changes the life of the dolphin but also of the people around him. It’s a story of grit and determination. It made the audiences cry and the producers fly high – in North America, the movie grossed $14 million from Friday to Sunday. It opened at #3 but rose to the #1 spot in the second week, something not very common.

A GOOD STORY HAS THE POWER TO CHANGE ALL BOX OFFICE RULES!

Not just is Warner Bros very happy with the performance of the film, but so is ‘Clearwater Marine Aquarium’. This is the water-park in Florida where the movie was filmed, and Clearwater cannot thank its stars enough. Even before the movie opened, visitors to the water park increased tremendously. The impact of the movie has been so great that the aquarium is now spending $12 million in expansion including a new “Dolphin Tale” exhibit. The aquarium now also has a new website and calls itself “The home of Winter”.

The dolphin’s tale of survival has worked wonders for a lot of people and a lot of brands too, apart from the Clearwater aquarium.

It shows the little boy doing all his searches, not on Google but on Gigablast which calls itself the ‘leading clean-energy search engine’ as it uses wind energy to provide 90% of the power required to run its servers. The movie also features Dell laptops and a whole lot of other brands. Both marketers and viewers are more than familiar with this form of marketing. The trick is to do it intelligently so that it creates an impact and does not look tacky. There is hardly any big film released today without brands being an integral part of them. This medium is after all the most powerful of all and can do wonders for a brand.

THE POWER OF FILMS

Some products that have benefitted the most out of in-film branding have not just been ‘products’ but rather countries. Just as Clearwater Aquarium has benefitted from the movie Dolphin Tale, so have a whole lot of other places. After Lost in Translation was released, everyone wanted to go to Tokyo. Almost all of Yash Chopra’s films have worked as powerful advertisements for Switzerland. Hrithik’s debut film Kaho Na Pyar Hai was responsible for doubling the Indian tourism to New Zealand. The latest to hit the Indian box office, Zindagi Na Milege Dobara, will do wonders for Spain.

If there is one city that has been featured innumerable times in films , then it is New York. Every year, hundreds of films feature New York and the city understands the impact this has on its tourism. So the Mayor’s Office in New York offers free filming permits, police assistance and even gives you location advice if you want to shoot a film there. After all, product placement of the city will help both the parties – for if a film is able to capture the essence of a city on camera, then it becomes the most powerful promotional tool for the city.      Read More....

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM in sync with the best of the business world.......
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

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