CREATE OUTCOMES - Nielsen...VUCA WORLD We live in Volatile, Uncertain, Complex and Ambiguous (VUCA)...

1CONSUMER 360 I CREATE OUTCOMES Copyright © 2015 The Nielsen Company

C R E AT E O U T C O M E S 2015


N I E L S E N C O N S U M E R 360 2015

In a marketplace where good is not good enough, insights are not inciting enough to effect a real change. To win in the market, we need to combine insights and business intelligence with foresight and action. The real yardstick of winning in the marketplace is the creation of outcomes. Strong results begin with clear objectives and a vision for success—that hinges on identifying, understanding and connecting with consumers. But what drives people to watch and buy what brands offer? How can we create positive and successful outcomes using smart data and sharp insights? The need of the hour is a game plan.

CREATE OUTCOMES


C R E AT I N G O U TC O M E S I N R E A L L I F EIf we had to pick the single most important objective of business intelligence and insights, it would have to be, to creating outcomes.Generating insights is good, but following it up with action is better. The most successful stories in the real world were conceived as insights, but made an impact of mammoth proportions only when they created outcomes. Here are some such instances.

REACH CONSUMERS DIRECTLY AND PRECISELY

Consider the story of Prabhakar Reddy, an auto rickshaw driver from the Andhra city of Vijayawada. He and his family live from hand-to-mouth with very little to show by way of savings, and practically no financial plan for the future. When the Pradhan Mantri Jan Dhan Yojana was announced for people like him, it seemed like an impossible dream. Under the scheme, 115 million such people opened bank accounts between Independence Day and Republic Day in 2014. Reaching the last person in every corner of the country with insurance and banking services was an exercise in creating an overwhelming outcome.

Piyush Mathur, President, Nielsen India Region welcomes delegates to the 2015

edition of Nielsen Consumer 360 held at JW Marriott, Mumbai

GENERATING INSIGHTS IS GOOD, BUT FOLLOWING IT UP WITH ACTION IS BETTER.

6 CONSUMER 360 I CREATE OUTCOMES

IT TAKES MORE THAN TECHNICAL PROWESS TO WIN IN THE MARKET. IT PAYS TO GET TO KNOW THE CONSUMER.

HAVE THE FLEXIBILITY OF GOING BACK TO THE DRAWING BOARD

In a village in Avinashi in Tamil Nadu, lives IA Chami – 55, illiterate and far removed from technology. Today, he interacts with and withdraws money from an Automatic Teller Machine (ATM). But they later realised that illiterate consumers refused to trust the crisp currency notes that were dispensed. Traditional logic taught them that ‘genuine notes’ passed hands and were soiled. With their new-found insight, the team went back to the drawing board to modify the dispensing system to accommodate ‘used’ notes to meet with the approval of local sentiments. Clearly, it takes more than technical prowess to win in the market. It pays to get to know the consumer.

UNDERSTAND THE CONSUMER

It all boils down to understanding the consumer. There is a lot of innovation on the streets, but often it just passes us by. For instance, a young Madhav Mishra dropped out of school to start contributing to the family kitty by selling magazines at traffic intersections. Experience taught him to be razor sharp at recognising customers. With an array of magazines to sell and 30 seconds of a red signal, he better be. Quick to spot a businessman from a corporate suit, or a society lady from a corporate one, he usually whips out a magazine that’s close to clients’ tastes. His secret is a keen understanding of the consumer. Brands can take a leaf off his book.

INVEST IN TALENT

That brings us to talent development and the story of Anand Kumar, who runs an enterprise out of Patna, with a difference – Super 30. He has identified and coached 360 underprivileged students for the IITs, 85% of whom are now proud graduates of the premier institute with only a visionary to thank for it.

The opportunity that presents itself to marketers today is to act on insights, maximise the usefulness of data and see an innovation through to success. Our time to create outcomes is now.

Harish Manwani, Non-Executive Chairman, Hindustan Unilever Ltd. and former COO, Unilever, shares insights into the megatrends that are reshaping the world.


C R E AT I N G O U TC O M E S I N A V U C A W O R L D We live in Volatile, Uncertain, Complex and Ambiguous (VUCA) times. The need to create business outcomes is even more pertinent under the current circumstances. Outcomes are created by being of use; and the purpose of business is to be of use and be relevant to societies under changing circumstances. To be able to make an impact, it is crucial to first understand these circumstances. A first step is identifying the primary stakeholders; and for businesses today, the most important stakeholders are the communities in which brands operate. Communities and consumers are constantly evolving, and this makes the short term increasingly important. While the long term will always be important, the need for agility is what makes short term the focal point of business planning today. Three trends emerge particularly strongly in this prevalent scenario, which have the power to make or break businesses.

MEGA TRENDS RESHAPING THE WORLD

DIGITIZATION

EMERGENCE OF DEVELOPING AND EMERGING WORLD

SUSTAINABILITY

Harish Manwani, Non-Executive Chairman, Hindustan Unilever Ltd. and former COO, Unilever, shares insights into the megatrends that are reshaping the world.


DIGITISATION IS GOING TO FUNDAMENTALLY CHANGE BUSINESS MODELS

The world has never been this connected, but more importantly, technology has never made such an impact on consumers. We now use technology to change the lives of every person in our communities. It is not about the technology that people use on computers as much as it is technology that they carry in their pockets. The total technology that was used by the National Aeronautics and Space Administration (NASA) to send a man to the moon, in fact matches all the technology that consumers carry on their person today. Perhaps, in the retail evolution process, India will leapfrog from traditional trade to e-commerce and mobile commerce, and forego modern trade and hypermarkets in the future.

EMERGING MARKETS ARE GOING TO CHANGE THE MIX OF BUSINESS

The future of the business world is going to be in developing and emerging markets. Statistically, 85% of the world’s population lives in these nations. It is estimated that by 2020, in terms of consumption, Asia alone will have more purchasing power than the United States of America and most of Europe put together. So, the world is changing and for businesses to create outcomes the focus has to squarely be on emerging markets and consumers in those markets. The east is creating its own models of success, several of them centered on inclusive or frugal innovation.

IT IS ESTIMATED THAT BY 2020, IN TERMS OF CONSUMPTION, ASIA ALONE WILL HAVE MORE PURCHASING POWER THAT THE UNITED STATES OF AMERICA AND MOST OF EUROPE PUT TOGETHER.


SUSTAINABILITY MUST BE EMBRACED ! THERE IS BUSINESS ONLY WHERE THERE IS A SOCIETY

The harsh reality is that as the developing world grows, they will begin to consume like the developed world. But the question is, can the limited resources of the planet accommodate this growth? The simple solution is that sustainability needs to be at the heart of business. The stark statistic is that the 80 wealthiest people in the world are together worth more than the bottom 50% of the population, which is 3.5 billion people. The demand on businesses is therefore to create outcomes that can do something about the gaping hole. Businesses need to serve the communities that sustain them, simply because they can’t thrive in an ailing society. Brands have to be at the forefront of social change. In the same vein, corporate entities can no longer afford to talk of sustainability while letting their brands harm society through their processes. Sustainability has to be integrated in individual brands and their functioning. On the advertising front, marketers have moved from communicating functional benefits of brands to emotional benefits. However, the new frontier is the move from emotional to social impact of brands. Take the brand Dove for instance. The initial functional promise was that the product was made of one quarter moisturising cream. From there the communication moved to an emotion benefit, that of real beauty. As it stands now, the brand wears sustainability on its sleeve. As a result of keeping pace with the evolving consumer, Dove is one of the largest personal care brands in the world.

For any brand, the endeavour should be to go from ‘great’ to ‘good’, instead of the other way round. Great companies need to ensure they are good citizens too. Consequently, business is moving from the 3G model, of growth that is consistent, growth that is competitive and growth that is profitable; to the 4G© model that includes growth that is responsible.

LEADERSHIP BEHAVIOURS FOR A NEW WORLD

VALUESLED

LEADERSHIP IN A

VUCA WORLD

PURPOSEDRIVEN

+


OPPORTUNITIES TO CREATE OUTCOMES The path to performance is a framework that mirrors a brand’s workflow in getting a product across to the consumer. While traversing this path, we come across the consumer, the marketplace and the media that consumers engage with.

As things stand today, opportunities to create outcomes abound along this path. For one, Indian consumers are more confident than they were a year ago. Recessionary fears have faded and the propensity to invest and spend have both gone up. Moreover Fast Moving Consumer Goods (FMCG) value grew at 8% in 2014-15, while the forecast for the next year is a healthier 10% which is expected to be driven by food categories. In an indication that the growth is going to be widespread, traditional trade is expected to continue to outpace the growth of modern trade.

Widespread growth means there will be more consumers to engage with. With Indian consumers increasingly connecting via smartphones, it promises to be the engagement platform of the future. Today there are 128 million connected smartphones in the country, and of all the devices that are selling, 33% are smart devices. The implication for brands is to take this medium very seriously.

Prashant Singh, MD, Nielsen India Region gives the audience a feel of what’s in store at Nielsen India Consumer 360 2015

FAST MOVING CONSUMER GOODS !FMCG" GREW AT 8% IN 2014#15, WHILE THE FORECAST FOR THE NEXT YEAR IS A HEALTHIER 10% WHICH IS EXPECTED TO BE DRIVEN BY FOOD CATEGORIES.


Prashant Singh, MD, Nielsen India Region gives the audience a feel of what’s in store at Nielsen India Consumer 360 2015

In terms of media consumption, digital will outpace traditional media. The media industry as a whole grew at 16% last year, and in 2015, it is expected to grow 9% over the 16% growth.

Opportunities for brands dot the entire journey; starting with the consumer, moving towards marketing effectiveness, advertising and culminating at the store. The ball is now firmly in the court of brands to break down the entire path to performance in manageable parts and evolve strategies to win in-market.

The four practices are designed to help brands navigate the path to performance. Consumerization helps identify the most profitable demand pools and seek out ‘super consumers’, or those who heavily use brands while being heavily engaged with them as well. The practice of Innovation helps design diversification strategies and create breakthrough innovations. Marketing Effectiveness helps design campaigns by analyzing the Consumer, Context and Content. Finally Sales Effectiveness sees a brand through the final leg of the journey where brands meet their competitors and consumers in store.

Source: Nielsen

CONSUMERIZATION: Organize around consumers; build proprietary understanding about your most profitable consumer – then activate the entire organization.

INNOVATION: Improve how companies innovate; integrated from white space to launch support

MARKETING EFFECTIVENESS:Engage consumers through effective and efficient marketing

SALES EFFECTIVENESS: Activate plans through superior sales execution

INDIAN CONSUMER IS MORE CONFIDENTCONSUMER CONFIDENCE UP BY 14 POINTS OVER LAST YEAR

FASTEST GROWING SMARTPHONEINTERNET ENABLED SMARTPHONES EXPECTED TO GROW 4X BY 2019

FMCG ON PATH TO DOUBLE DIGIT GROWTHSET TO GROW BY 10% IN 2015 DESPITE LOWER PRICE INCREASE

2015 HOLDS A GREAT PROMISE FOR MEDIA DIGITAL WILL OUTPACE ALL TRADITIONAL MEDIA

16%MEDIA INDUSTRY GROWTH 2014

129INDIA’s

CONSUMER CONFIDENCE

128MMINTERNET ENABLED

SMARTPHONES

8%FMCGGROWTH

10

5

6

6

29

9

9

TV Press

Outdoor Radio

Digital Cinema

Media

BEVERAGES GREW ON A DOUBLE DIGIT RATE OF 12%

RECESSIONARY SENTIMENT GOING AWAY

17% OF THE MOBILE PHONE USERS

33% OF ALL THE MOBILE PHONES SOLD ARE SMART

STAPLES AND IMPULSE DRIVING GROWTH IN FOOD

WILLINGNESS TO SAVE AND INVEST

TRADITIONAL TRADE (8%) AHEAD OF MODERN TRADE (5%)

CONSUMPTION INTENT

IMPROVED ECONOMIC ENVIRONMENT


CONSUMERIZATION

Roosevelt D’Souza, Senior Vice President, Nielsen India explaining the concept of the super consumer


GOING SUPERSONIC WITH SUPER CONSUMERSConsumerization, which is the entry point to the path to performance, facilitates market segmentation by helping clients get proprietary understanding of their most valuable consumers. This traditional process of segmentation and marketing is all set to get streamlined with the advent of the ‘super consumer’. As we crack the code of identifying the most profitable and engaged consumer with this revolutionary concept, it will also change the way brands approach marketing. The outcome? Better marketing effectiveness for the brand.

‘Super consumers’ refers to those consumers who connect with a particular product category and buy a lot in that category. In other words, they are a cross-section of heavy users and heavily engaged users. They are an important lot because they are the primary set of consumers who will drive profits for the brand as they are emotionally engaged, and will participate more in offers and be open to innovations. Additionally, they are influential as trendsetters.

Roosevelt D’Souza, Senior Vice President, Nielsen India explaining the concept of the super consumer

SUPER CONSUMERS ARE A CROSS!SECTION OF HEAVY USERS AND HEAVILY ENGAGED USERS.


A recent study conducted by The Cambridge Group (TCG) - a consulting arm of Nielsen, across 200 categories, established the path breaking fact that the ‘20% driving 80%’ business principle that most of us are used to, has been further refined to ‘10% driving 60%’. This implies that it is this 10% of the super consumer category who will drive 60% of the prof its for a brand; an insight that could create significant outcomes for savvy marketers.

There are four common traits amongst this segment of consumers. They are: 1. Experimental and have a higher risk appetite.2. Early adopters and not easily satisfied. They are always looking for

more and newer things.3. Well informed and involved as they read a lot.4. Talk a lot and are active on social media.

Their attitudes, perceptions and beliefs set them apart. From category knowledge to brand awareness, it’s evident that they are a notch above the regular consumer.

WHAT SETS SUPER CONSUMERS APART

AFFLUENCE + INFLUENCE + MUCH MORE…

SUPER SHOPPER

SUPER DIGITAL VIEWER

SUPER HEALTH FOODS CONSUMER

SUPER MOBILECONSUMER (DATA + VOICE)

SUPERINVESTOR

ExperimentalEarly adoptersConfidentTravelled, Trend-setters

InformedInnovativeExperimentalHungry for knowledge

Category savvyRisk averseDon’t fear failure, feel it makes them smarter each time Experimental, Confident

Globally awareExperimentalCategory involved

Well travelled Constantly seek new informationConfident, Self-assured


This brings us to the question, what’s in it for brands and how can they leverage their super consumers? Some of the insights pave the way:1. These super consumers love personal attention, so connect with

them on a personal level.2. Treat them as advocates. Involve them in brand activities like pre-

launch, feedback sessions, future trend spotting etc. 3. Customise for them, build specific marketing, budgeting and

distribution for these consumers to make them feel privileged.

This will change the way brands are marketed. The small percentage of super consumers will drive a large part of the business, making segmentation a whole new ballgame.

HOW CAN BRANDS LEVERAGE SUPER CONSUMERS?

BRANDS MUST BE ‘SUAVE’ TO HANDLE SUPER CONSUMERS YET HUMBLE TO REACH OUT TO THEM ‘PERSONALLY’

1 2 3 4

PRE- LAUNCH INFORMATION

FUTURE GAZING INTO THE CATEGORY FOR

NEWER TRENDS

FEEDBACK /SOFT LAUNCH

CUSTOMIZATION


ACTIVATING THE SUPER CONSUMER THE MICRO MARKET GRIDThe implementation and execution phase of marketing always poses a challenge for brands. So far, marketers have sought data that is collected at district or city levels, and perhaps even at the neighborhood level. However, as consumers get increasingly segmented, collection of data at even finer levels of granularity is becoming imperative.

Through Nielsen micro markets, we can now combine a variety of inputs including satellite imagery, road data, and even data on garbage collection to evolve an accurate understanding of consumers down to a single square kilometer. What marketers can get out of this exercise is details about location, economy, land use, competitor presence and other locational characteristics.

Dr. Laveesh Bhandari, Chief Economist, Nielsen India introducing the Cellgrid technology


With data such as this, identifying a location becomes a more informed choice. But, there is a lot more that can be done. What it can essentially do is bring the marketing and sales functions closer together. The Cellgrid solution is therefore a technology that generates multiple layers of very granular data, which marketers can mix and match to facilitate local decisions.

Source: Indicus Analytics, A Nielsen Company

Source: Indicus Analytics, A Nielsen Company

MOVEMENT TOWARDS MICRO!MARKETS

THE MICRO!MARKET CELLGRID

DISTRICTS/CITIES BETTER ! NEIGHBORHOODS

SUPERIOR " 1 SQ KM CELLS PRECISE !POINTS

MANY DATA LAYERS, MATCHED, MAPPED AND CALIBRATED AT A FINELY DISAGGREGATED LEVEL

Population/HouseholdsSegmentationAssets Penetration

Residential/CommercialAffluence/PovertyIncome/Expenditure

ConnectivityMarketsLand Use

CONSUMERS ECONOMY LOCATION


THE ‘EXTREME’ CONSUMERSSuper consumers are critical to brands because they drive growth and profits, act as influencers, and are valuable sources of feedback. However, valuable insights can be collected from a marginally wider range of consumers as well.

Traditional thinking divides consumers into three segments; ‘rejectors’ of a brand or category, ‘lovers’, and the ‘typical average’ consumer who falls between the two extremes. For brands that are looking for inspiration, the two extremes are the places to look. Consumers who outright reject an offering as well as those who virtually love them, offer a great deal of insights for a brand to learn from. Consumers who fall in these two extremes can be termed ‘extreme consumers’, and include ‘super consumers’ within them.

Ravi Desai, Divisional Marketing Manager, ITC Foods helps identify the consumers who provide the best insights

THE ‘REJECTOR’ IS NOT THE LOVER OF THE CATEGORY BUT IS HIGHLY ENGAGED, AND SO FALLS IN THE DEFINITION OF ‘SUPER CONSUMER’.


Extreme consumers are valuable for brands because these consumers display ‘marker habits’, which are very important for brands and categories to understand.

Considering the value they bring to the table, the lover-super consumer, is understandably, very important to brands and researchers. However, the insights offered by the rejector among the super consumers can prove to be as vital for marketers. A case in point is Aashirvaad Atta. Marketers at ITC were baffled to see savvy consumers use packaged food items frequently, while steering clear of packaged atta. A closer look revealed a deep-rooted belief in the mind of the consumer, that the closer to the time of consumption that wheat is ground into atta, the better is the nutrition. This and the concern about the quality of the wheat used were the main barriers to purchase. This insight helped the brand go back and focus their efforts and communication towards dispelling these apprehensions. The pack now talks about the source of the wheat used and encourages consumers to check the manufacture date at the back of the pack.

‘Rejectors’ are similar to the lovers of the category in as much as they are highly engaged, and so fall in the definition of ‘super consumer’. Both of them are important to develop new offerings, devise marketing campaigns and make them more effective. Traditionally most research happens at the belly of the bell curve where the maximum average consumers are found. However, the ideal approach for bettering marketing effectiveness is to connect with the super consumer existing on both these extremes of the bell curve.

THE VALUABLE EXTREME CONSUMERS

Lovers

LOOK HERE! LOOK HERE!DON’T LOOK HERE!

RejectorsToday’s

ConsumerResearch

Insight & Inspiration


GIVING WINGS TO DREAMST H E B I R T H O F ‘A S H A’There is something wrong with a market that has 48 months of unsold housing inventory alongside an unmet demand by 18 million consumers. The insight that emerged after much analysis of the consumer was that all the supply of housing as well as housing finance, including the surplus, catered to the top 8% of the earning urban population. Concurrently, all the unmet demand was at the bottom rung, for whom there was no real offering. This led to the realization that for 30 million urban households, with income levels between INR 8,000 and INR 25,000, owning a house was a dream with very little chance of fulfilment. The opportunity was that there was a whole segment of consumers living on rent who aspired to move into their own house.

Jairam Sridharan, President- Retail Lending, Axis Bank on creating outcomes in the India housing market


This insight got the leaders at Axis Bank thinking and created an outcome that helped many consumers realise a distant dream. Gradually, builders innovated with the format of housing and started offering low-cost 1-Bedroom-Kitchen (1BK) formats rather than 1-Bedroom-Hall-Kitchen (1BHK) formats. With a change in housing formats and housing loan formats, consumers have started to queue up and the inventory is flying off the shelves.

While we formed the right channel mix to communicate this externally, and we also made changes within. In a regular situation, the sales teams are incentivised according to the volume of the businesses they do. Why would they be interested in small-ticket loans? As a solution, we create an entirely new distribution channel, dedicated to Asia, where incentives depended on the number of loans closed instead of value of the loan.

The results have been outstanding for us on every count – awareness in this segment, the consideration for Axis Bank and creating a strong growth trajectory.

MAJORITY OF CONSUMERS LIVING ON RENT WITH AN ASPIRATION TO MOVE INTO OWN HOUSE

WANTED TO MOVE INTO OWN HOUSE INSTEAD OF RENTED PLACE

WANTED TO MOVE TO A PLACE WITH BETTER FACILITIES

WANTED TO MOVE TO A BIGGER HOUSE

PLAN FOR FUTURE NEEDS (KIDS)

55

46

44

35

Source: Nielsen study

“I wanted to move into my own house

instead of staying in a rented place”

“I earn Rs. 9000 p.m. However my family

income is Rs 15000 as my wife also earns Rs. 6000 p.m. Can I get a loan?”.


INNOVATION


THE INNOVATOR’S ANTIDOTEWHAT IT TAKES TO CREATE BREAKTHROUGH INNOVATIONMarketers are constantly on the look-out for the best avenues to expand their brands and diversify their portfolios. The answer may well be the creation of breakthrough innovation, which expands not just the brand, but the entire category. Distinctive innovation aims at just that.

Business leaders typically hold back innovation efforts because 58% marketers say that new launches today contribute less to sales. However, this statistic is flawed by incorrect methods of assessment. For one, most ‘innovations’ are ‘deemed innovations’ because they are merely product upgrades rather than genuine innovation; statistically, as much as one third of all Fast Moving Consumer Goods (FMCG) launches are triggered by product upgrades. True innovation involves creating a breakthrough offering even before consumers articulate or realise that they want it. Second, more than half of India’s marketers evaluate innovation success too fast, sometimes within a twelve month time-frame. Lastly, sustainable and profitable innovation needs a long term outlook, while in reality, as much as 80% marketers focus on near term priorities.

Adrian Terron, Senior Vice President, Nielsen India explains how breakthrough innovations are created


Over a billion dollars each year, or over 6000 crore rupees, is put at risk of not being a breakthrough innovation. So far the focus has been on making a great innovation successful in the market. Our newly rationalised thinking now puts great emphasis on the creation of a great innovation as a necessary first step. The re-evaluated thinking is that brands need to make a great innovation successful only once they have a great innovation in the first place. Therefore, the need of the hour is a plan to create a great innovation, including what the intrinsic characteristics of a great innovation in the Indian marketplace ought to be, even before the actual launch. The task therefore is a two-pronged; not only do marketers need to make innovation successful using the established equation, but they first need to create a successful innovation.

The key to creating a watertight process to conceive, create and deliver successful innovation, is answering the four questions below.

1. What constrains Indian businesses from creating great innovation?

2. How do successful innovations differ from unsuccessful ones?3. How do successful innovations differentiate themselves even

amongst other successful innovations? 4. What do consumers deem to be a successful innovation?

OVER A BILLION DOLLARS EACH YEAR, OR OVER 6000 CRORE RUPEES, IS PUT AT RISK OF NOT BEING A BREAKTHROUGH INNOVATION.

DILEMMAINTENSIFIED

50% companies that innovate do not follow a stage-gate screening process

Churn more innovations within 18 months to beat

competition

9 / 10 companies spend less than 10% of innovation

budget on R&D

85% do not seek feedback from partners

WHAT COMES IN THE WAY OF INNOVATION


The answers enabled the creation of a framework for marketers to follow. The thumb rules to create great innovations are:

Allocate sufficient budgets to experiments, and core research and development.Involve retailers and partners in the ideation process with a conscious move from ‘haggling to handshakes’.Dedicate time and resources to the early stage of innovation with a formal process for shortlisting.However, simultaneously get to market with the entire range faster. Here it is essential to exercise restraint and resist that temptation to discount early.Finally, use all the insights gathered to identify winning characteristics that can be grafted into the innovation pipeline.

The winning way is to move from insight to antidote and then to truly breakthrough innovation; thereby turning it into an imperative for growth.

WHAT WINNERS DO ! THE ALCHEMY OF INNOVATION

FROM ANTIDOTE TO IMPERATIVE

SCIENTIFIC KNOWLEDGE

MADE ACCESSIBLE

POPULARIZING THE PREMIUM

MULTIPLE REASONS TO

BELIEVE

ENHANCING CURRENT

OCCASIONS

LOVE YOUR LABORATORY

ASSORTMENT ALL AT ONCE

INTENSIFY THE INNOVATION FUNNEL

ADAPT THE UNLIKELY

FROM HAGGLING TO HANDSHAKES


ADDING PASSION TO PROCESSPrecedent shows us that breakthrough innovations have not necessarily been born of articulated consumer responses. Consumers can only ask for what they know to exist or be possible. Some of the most successful and breakthrough innovations have been born of a deeper understanding of consumers, combined with insightful and daring moves by marketers. Understandably, this is a challenging balance to strike, and therefore it is essential to combine the established innovation equation with relentless passion.

This was the way innovators at Godrej Consumer Products Ltd. (GCPL) approached the creation of their Rich Crème offering that changed the game in the Indian hair-colour market. As far back as the mid-eighties, the brand successfully scripted the powder hair colour story that resulted in an entire nation shifting from messy liquid dyes to the convenient powdered version. After 15 years and four crore users, the brand became synonymous with the category. Several years later, when crème hair colour started entering the market, driven mostly by multi-national brands, Godrej decided it was time to shake things up and brace for change. The crème penetration at the time was a mere 2.5%, so instead of focusing on a market-share battle, the brand decided to revolutionise the category itself. After all, if the brand could teach people to move from liquid to powders en masse, it could do the same with crème. The first innovation, was the way the problem was approached.

Sunil Kataria, Business Head India and SAARC, Godrej Consumer Products Ltd. on the importance

of combining innovation with relentless passion.


Innovation was the mantra at every step of the process from consumer insight, product development and marketing, to pricing, display and distribution. The result was that the brand practically ‘built’ the crème category in India and made it both accessible and affordable for the masses. What made this a breakthrough innovation and prompted its wide acceptance was that a blind test proved that the actual product was at par with the best the market had to offer.

What helped craft this success was a unique model. Godrej’s way of doing innovation is based on the ‘whole brain model’ that moves away from putting marketing at the center of innovation, to creating a balanced whole.

This instance goes to show that essentially, the first step has to be the creation of successful innovation, followed by efforts to make the innovation successful.

WHOLE BRAIN THINKING

DESIGN!LED BRAND ARCHITECTURE

design

marketingR&D

manufacturing supply chain

packaging

THE WHOLE BRAIN MODEL MOVES AWAY FROM PUTTING MARKETING AT THE CENTER OF INNOVATION, TO MAKING IT ONE PART OF THE INNOVATION PROCESS.


CREATING AND EXECUTING A BREAKTHROUGH INNOVATIONThe assembly line for a breakthrough innovation includes identification, creation, development and execution. The TRESemmé brand team at Hindustan Unilever used modern day thinking across this entire equation to successfully launch a very traditional global brand, even if it involved re-thinking every rule in the book.

When TRESemmé was considering entering the Indian market, the question was whether to localise the plan or stay with the established global formula for success.

The team chose the latter, and the core promise of the brand remained relevant to India - empowering women with the transformative power of the salon. So, the brand team made the bold decision of not necessarily following the established formula for launches in India, and instead working on the insight that Indians favour imported products and ideas. The team at TRESemmé was confident that though there were various reputed brands in the market, they would not be in a position to cater to a segment of consumers who were emerging, a group to whom salon-styled hair was the ultimate aspiration. By bringing home and salon together, the team had a winning proposition. Here are the innovations that moved away from the usual and worked to make the brand a success.

Srirup Mitra, Head- Hair Care Category, Hindustan Unilever Ltd. encourages breaking away from the usual and successfully launching a traditional global brand


The brand way versus the way of the conglomerate: Since the offering was for the premium, affluent, digitally savvy, modern, early adopters; the decision was to go against the organisation’s biggest leverage – scale. It was launched only in seven centers across India and exclusively in modern trade.

Setting the context for the brand: It was not enough to find the perfect consumer and make the product available to her; it was also important to offer a very compelling reason to buy. The team launched the brand at the Lakme Fashion Week to establish that these were the set of products that experts used backstage to craft the look of the models.

Digital over traditional media, but for a different reason: For an organization that creates several effective television commercials, the same for TRESemmé would seem like the best thing to do. But for premium consumers who wanted information, 30 seconds of messaging just wouldn’t suffice. The result was the launch of a You-Tube channel with videos perfect for this audience. It is today India’s largest hair care page on the platform.

Fluid innovation model: Contrary to the prevalent innovation model that is 2-3 years long, the brand team decided to launch variants on a simple insight. The most searched hair trend was the hair spa, so the ‘spa’ variant was launched rather than an expected ‘curl control’.

Deeper understanding of what the consumer really wanted: The most courageous innovation was the decision to offer a hair straightener free for the first time ever, instead of the usual discount of INR 30. This decision made the brand one of the most successful launches from HUL in recent years.

THE POTENTIAL POINTERS IN INDIA WHEN WE LAUNCHED

8xCONSUMPTION OF BEAUTY PRODUCTS AND SERVICES 2002!2012

5xAVG.SPENDS ON HAIR & SKIN CARE2002!2012

3xINCREASE IN LSM 8+ HHLDS TO 23MN IN 2015

BEAUTY SERVICES MARKET98500 Cr

29800 Cr

6900 Cr

2000 Cr

2005 2012 2015 2020


LEADING BY INNOVATIONTHE STORY OF !DEA, RUNS ON AN IDEAIn a commodity market like cellular phone services, innovation centers on the brand proposition far more than other aspects like product development. Innovation plays out in the way brands connect with the consumer, helps them understand the category and identify with the brand. Idea Cellular has innovated on several fronts to consistently gain market share and forge a bond with consumers.

Personality: The brand was conceived as a thought or a notion with the potential of bringing about a powerful change. To this end, products such as ‘lifetime validity’, ‘women’s card’ and ‘dial-a-tone’ were introduced to challenge market stereotypes.

Uncommon sense prevails: A valuable insight for the brand was that the urban market that contributes 60% had a tele-density of over 100%; while rural that forms 30% of the market had a low 42% penetration. Using this, despite urban markets being the low-hanging fruit, uncommon sense prevailed and the brand decided to pursue the less-traversed path of focusing on rural with remarkable success.

Sunita Bangard, President-Marketing, IDEA Cellular Ltd. on how the brand bonded with consumers

through innovation at multiple levels


Deciding to be a brand with a point of view: Today people don’t just buy into products, they buy into a point of view. Idea decided to get consumers emotionally involved with the brand, and the proposition ‘an idea can change your life’ led the charge. Through campaigns and communication the brand started becoming a thought leader as a way to become a market leader.

From ‘why me’ to ‘buy me’: Consumers appreciated the communication and were engaged as well. However, while appreciating the advertising, they were not sure the brand was for them. Idea decided to make a conscious effort to shift focus from ‘why me’ to ‘buy me’. The brand made the necessary adaptations, added an urban mix and created a communication that was designed to activate.

Here are some learnings that have driven innovation for the brand.

All the innovation translated to business growth for the brand as data subscribers grew 3 times that of the industry, and data revenue and traffic grew at 1.5 times that of the industry. When innovation is not just a strategy, but a part of a brand’s philosophy, growth will follow.

CUSTOMER CENTRICITY: BASE BRAND STRATEGY WITH CUSTOMER AT ITS HEART

DIFFERENTIATION: CREATE & CONVEY A DISTINCT PROPOSITION IN BOTH PURPOSE & COMMUNICATION

RELEVANCE: FOLLOW THE CONSUMER AND CONTINUE TO BE RELEVANT

AHEAD OF THE CURVE: KEEP A FINGER ON PULSE OF THE MARKET " CHANGE BEFORE YOU ARE FORCED TO

CLARITY OF PURPOSE: DEFINE PURPOSE, HAVE CONVICTION IN IT, FOLLOW IT CONSISTENTLY

INNOVATION: NOT NECESSARILY PRODUCT OR SERVICE, CAN BE PROMISE, PROCESS, PROPOSITION


MARKETING EFFECTIVENESS


THE ART OF EFFECTIVE ADVERTISINGAdvertising creativity versus advertising effectiveness has been the perennial contest for brand marketers. In the world of marketing, creativity needs to convert into sales, but do brands succeed in making their advertising campaigns as effective as they should be? Here is a framework with a view to guide marketers on the art of advertising effectiveness, and ways to derive more out of planned advertising spends.

The good news for advertisers is that the learning derived from our Marketing Mix work in the FMCG space, says that television advertising has the highest impact of about 50% in driving incremental sales for a brand. However, it was also noticed that only 1 in 5 campaigns was effective and efficient. Statistically, if a brand just starts operating within optimal levels, this itself will give it about an incremental 5% - 15% efficiency. The key detriments of this efficiency have been attributed to three factors; content quality, spend levels and execution. The solution to this issue is the new 3-C framework that will help brands drive campaign success.

Dolly Jha, Executive Director, Nielsen India, introduces the 3-C framework of Content, Context and Consumer


IF A BRAND JUST STARTS OPERATING WITHIN OPTIMAL LEVELS, THIS ITSELF WILL GIVE IT ABOUT AN INCREMENTAL 5% # 15% EFFICIENCY

THE 3Cs DRIVING CAMPAIGN SUCCESS

CONSUMER

CONTENT

CONTEXT

HOW DO I REACH THE CONSUMER EFFICIENTLY?

HOW DO I MAKE MY CAMPAIGN MORE IMPACTFUL?

WHAT IS THE CONTEXT OF MY CAMPAIGN?


THE CONTENT SHOULD CAPTURE THE VIEWER’S ATTENTION IN THE FIRST FIVE TO SEVEN SECONDS BECAUSE THAT IS WHERE THE RISK OF LOSING THE CONSUMER IS HIGHEST.

The three crucial elements of Consumer, Content and Context promise to deliver better advertising. Reaching the consumer efficiently is the first step towards efficient advertising. Consequently, brands need to focus on accurate targeting in addition to considering media reach. Digital Ad Ratings (DAR) for example, enable marketers to choose the right publishers by looking beyond their reach or traffic numbers, to the on-target reach they offer.

Second, content should capture the consumers’ attention in the first five to seven seconds because that is where the risk of losing the consumer is the highest. The content must also engage consumers and activate their memory at the moment of purchase. The use of elements like multi-sensory stimuli, motion branding and similar communication effects, have a rather deep impact on the memory, making the content more effective than it would be in an advertisement whose content does not consider these factors.

The third and perhaps the most important pillar in making advertising more effective is the context. Brands should prime their advertising campaign with an appropriate context. At any moment, when consumers engage with a stimulus or any content, they are ‘primed’ by what they have been exposed to previously. It has been found that if the content of the advertisement matched the contextual theme, it performed significantly better across the key neurometrics. For instance, a ready-to-cook product should normally be a good fit in a competitive cooking show, since efficiency will be driven by context.

In conclusion, advertising campaigns need to be tracked and modelled around the 3Cs. When put to use, the 3C framework can generate significantly better return on investment (ROI) for advertising campaigns across media, thereby ensuring better marketing effectiveness for the spends.


THE THREEPRINCIPLES OF MEASURING MARKETING SPENDToday, as a community driven by insights, we can keep track of things and are much better informed than before. The flip side is that with so many measures at our disposal it is easy to get lost in a sea of information. It’s almost like a buffet, where marketers tend to pick up the winning measures. There are three key principles that should be used to pick the right measures in order to be successful.

Measure beyond impact: Most measurement efforts revolve around three dimensions. The first is impact, which measures consumer behaviours like buying more or trying the brand. The second is eff iciency, which calculates return on investment; how much it costs for every additional unit sold or awareness created. Third is learning, which measures what marketers actually learnt from the exercise. The new measure that brands should incorporate is execution because it helps contextualize the impact. For instance, while measuring impact, a promotion may show an uplift of 20%. But, it’s the execution measurement that will reveal a deeper insight - that the promotion was executed in 30 of the 70 possible outlets.

Garth Viegas, Global Insights Director, Tata Global Beverages on measuring marketing spends


Measurement is a red thread that links strategy and results: Measurement allows for a clear line of sight between strategy and impact. Of the hundreds of measures available, marketers should pick and string together the handful that will tie back to the brand strategy. It is easy to get confused by unstructured data. For instance, if a promotion tactic is launched to gain new users across 25% of outlets, with the result that consumer impact volume rises by 25%, marketers would normally call the promotional activity a success. Consider the scenario that all of the additional volume came from existing users; that would mean that the seemingly successful promotion was not really so. The effort of marketers must therefore be to pick out measures that are most successful at telling the desired story. In the instance under consideration, truly indicative measures would include the promotion to attract new users, activity execution showing 25% of outlets reached, the impact of number of new users, learnings, cost per user and cost per outlet. That would reveal true efficiency.

Measurement is a cross functional effort: Brands should create a measurement and learning culture. There is no magical formula for measuring marketing spend effectiveness. There are a lot of tools that help, but it boils down to creating a new culture within the organization and brands need a cross-functional team to do it. Importantly, brands often make the mistake of running a marketing campaign and thinking of measurement as an afterthought. For efficiencies to be improved, it is important to build it upfront.

CLEAR LINE OF SIGHT BETWEEN STRATEGY AND IMPACT

STRATEGY

GAIN NEW USERS

TACTIC

PROMOTION TO ATTRACT NEW USERS

CONSUMER IMPACT

VOLUME +20%

ACTIVITY EXECUTION

PROMOTION REACHED 25% OF

OUTLETS

FOR EFFICIENCIES TO BE IMPROVED, MEASUREMENT SHOULD BE BUILT INTO THE MARKETING PLAN UPFRONT AND NOT INTRODUCED AS AN AFTERTHOUGHT.


THE MEDIA PERSPECTIVE ON MARKETING EFFECTIVENESSWith a large part of clients’ marketing budgets going into media, it has become critical for the media industry and agencies to demonstrate value. There is a dire need to improve both the sophistication of reported metrics and insight.

Kartik Sharma, MD, MAXUS, South Asia explains the importance of demonstrating value

NEED TO UNDERSTAND MEDIA PERFORMANCE IN MULTIPLE WAYS

INCREASING THESOPHISTICATION OFREPORTED METRICS

BUSINESS PERFORMANCE METRICS (E.G. SALES, ROI, ETC.)

ADVANCED, MULTI-CHANNEL ANALYTICS (ECONOMETRICS, ATTRIBUTION, ETC.)

CONSOLIDATED REPORTING(DASHBOARDS, ETC.)

SINGLE CHANNEL-LEVEL REPORTING

CONSUMER ENGAGEMENT METRICS (E.G. CONSIDERATION, FOOTFALL, ETC.)

MEDIA DELIVERY METRICS (E.G. GRPS, ETC.)

INCREASING THESOPHISTICATIONOF INSIGHT

BASIC

BASIC

BETTER

BETTER

BEST

BEST


The importance and impact of creativity: Most marketers are still compelled to view data in an unappealing and cumbersome way, via Excel worksheets. However, the need of the hour is data that can be presented in a very powerful and creative way so that navigation and extraction becomes simple. Excel cannot throw up data in a jiffy. Data, to be useful and productive, must be distilled and attractive.

Market Mix Modelling can provide essential data: Market mix modelling is the mapping of various levers of marketing like Above The Line (ATL) spends, product launches, loyalty, public relations efforts, sponsorship etc., together. Such models can throw up vital data based on which marketing action plans can be more accurately measured and further action planned. Not enough marketers create these models, leading to a shortfall of desired data inputs.

The need for integrated marketing ROI over basic ROI: Marketers now need to take into account all the elements possible in order to evolve insights that truly impact business. The current standard marketing mix models are far too linear. In reality, there are usually four or five big variables that are not connected to each other in a linear fashion. We must therefore adapt and evolve. The power of trinity: Whether in marketing, media or advertising, we are in a business of ideas. A brand is an idea, and the task is to communicate that idea effectively to make the brand successful. The power of trinity is the concept that creativity is at the heart of everything. There are three elements of data, digital and content that come together to tell a story. For instance, when a consumer logs on to Facebook, YouTube or Google, she leaves behind a data trail. Someone out there analyses this and makes the foundation for some very insightful planning. So creativity, presentation and the use of data are at the heart of marketing effectiveness, and needs to supplement purely mathematical models.

THREE TIERED DATA, TOOLS AND PLATFORM

BEST IN CLASS TOOLS TO AUTOMATE DATA, CREATE

CUSTOMIZED DASHBOARD AND MANAGE ROI REAL TIME


SALESEFFECTIVENESS


FROM OPPORTUNITY TO EXECUTIONTRACING THE PATH TO PERFORMANCE In a scenario where brands are keen to be prudent with spends, rationalizing distribution and sales strategy are imperative to maximise performance of brands in the last mile to the consumer. Here is a 4-step guide to break down this formidable task into actionable steps and maximise efficiency. The ‘Path to Performance’ includes:1. Right Store2. Assortment3. Servicing4. Visibility

Vijay Udasi, Executive Director, Nielsen India takes the audience through the !nal frontier in the path to performance – achieving sales e"ectiveness

RIGHT STORE SERVICINGASSORTMENT VISIBILITY

MORE THAN HALF OF SALES ARE INFLUENCED BY REACHING THE RIGHT STORES

PATH TO PERFORMANCE


Numbers show that a staggering 60% of FMCG sales can be influenced at the store level. In fact, 30% of stores under consideration accounted for 80% of category sales. Since presence at every store is financially unviable, the right store choice is the first step towards efficiency. A meta-analysis across approximately 15 categories and 155 brands, revealed that overall sales effectiveness was primarily driven by availability and visibility. This included whether stores were covered directly or not, whether the right assortment was present, the frequency of servicing the store, and the actual visibility of products. Among various levers at marketers’ disposal to drive strong in-market performance, reaching the right store is the most important. In fact, reaching the right stores is half the job done. Needless to say, reaching these right stores directly, and with adequate servicing levels will go a long way in driving sales, growth and incremental share.

Right stores are coveted by all brands and therefore have four times higher assortment than average. How much and what to place in the right stores is a critical decision and gives the right outcome in terms of sales increase. Figures show that even an increase of a single Stock Keeping Unit (SKU) across stores can trigger an uplift opportunity of 9%. In order to maximise gains, the choice of additional SKUs must be right.

Servicing is the third key imperative to sales strategy. A study of servicing across competing brands revealed the insight, that for stores, it is not just servicing levels that matter, but relative servicing, compared to competition. According to the study across 155 brands, in stores where servicing levels were lower than competition, the brand’s average share was about 81% of the national average. However, in stores where the relative servicing of the brands was higher than competition, the share of these brands was 1.2 times the national average.

Visibility is another key parameter for maximising efficiency in sales. To supplement the main analysis, a test was conducted across 18 brands to study visibility, location and accessibility in store. The results were then compared to sales figures to reveal a pattern. Placing merchandise above eye level, placement relative to the counter, and in case of impulse categories - placing the shelf and product outside the store, resulted in incremental sales.

The statistics that emerged across studies are particularly telling, because they exposed the considerable headroom that exists, to drive significant growth in sales, by optimising in-market execution. Reaching the right stores can potentially yield a 33% increase in sales; being present with the assortment desired by the consumer can

HOW MUCH AND WHAT TO PLACE IN THE RIGHT STORES IS A CRITICAL DECISION AND GIVES THE RIGHT OUTCOME IN TERMS OF SALES INCREASE.


give brands incremental sales of about 15%, and improved relative servicing can help increase share in these stores by 1.2 times. Finally, having the right placement and accessibility of products can provide a potential uplift of 20-40%.

Consider the outcomes that can be created if marketers and sales teams could identify stores relevant to a particular category, and then be able to identify consumer details with GPS coordinates and pictures. That is the kind of change that this makes possible.

NETTING IT OUT… PATH TO PERFORMANCE

RIGHT STORE

SERVICING

VISIBILITY

+33%

SALES UPLIFT

+1.2 X

SHARE

+1.2 !1.4 X SALES UPLIFT

ASSORTMENT+15% SALES UPLIFT


MAXIMISING BUSINESS BY MATCHING DEMAND AND SUPPLYBusinesses often find themselves choosing between strategic coherence and tactical flexibility. Brands that choose to focus on strategic coherence make a master plan and execute it as close to the ideal as possible across markets. Those that favour tactical flexibility go to the market with localised plans that may not have much overall coherence; they choose to fight lone battles in small pockets. While there are merits in both approaches, the way of the future is to combine the two. However, this is easier said than done. Resources and system bandwidth are scarce across organisations. So, it becomes necessary to consider ROI while trying to better efficiencies.

Whether brands choose a blanket execution strategy or a localised one, the ground reality in markets is that it is difficult to match demand and supply. There are outlets where one exceeds the other, resulting in an Achilles heel for the brand or a compromise in efficiencies. The attempt is to find these outlets and bridge the gaps.

Sameer Satpathy, Chief Marketing O#cer, Marico speaks about the importance of balancing strategic

coherence and tactical $exibility to create powerful outcomes.


Sameer Satpathy, Chief Marketing O#cer, Marico speaks about the importance of balancing strategic

coherence and tactical $exibility to create powerful outcomes.

BRIDGING THE DEMAND !SUPPLY GAP

FIND POCKETS WHERE

DEMAND AND SUPPLY DON’T

MATCH

The Consumer Preference Score (CPS) solution: This is a measure of consumers’ preference for a brand. The solution isolates distribution bias and measures consumer preferences by placing all brands on a level playing field. When CPS results are mapped against market share, it reveals the position of the brand in an outlet. If CPS is greater, distribution should be increased. While, if market share is greater, it indicates that the brand is riding on the strength of distribution and is vulnerable to competition.

From the Marico stable, this solution helped Nihar Shanti Amla hair oil realize that the dependence of the brand was on distribution. After putting efforts into building the brand and including localised inputs, volume share increased by almost 5%. It has also become the fastest growing brand in the hair care category in the last 5-7 years.

The bottom line is that it is necessary to strike a balance and include both strategic coherence and tactical flexibility to create outcomes in the market. This should be possible with solutions such as CPS bringing in vast efficiencies in particular outlets. With the ability to gather accurate data on distribution and consumer preferences, it is possible to plan activities, SKUs, trade loads and much more with focus on specific markets.

FILL IN THROUGH EFFICIENT

SUPPLY CHAIN, WHERE DEMAND EXCEEDS SUPPLY

CREATEDEMAND

IN MARKETS WHERE SUPPLY EXCEEDS

DEMAND, THROUGH TARGETED

COMMUNICATION


CREATING OUTCOMES IN STOREThe store is where the rubber meets the road. It is the retail theatre where consumers’ imagination can be fired up to activate sales. But to be able to do all that, it is imperative to start with identifying consumers and understanding them; and end with gaining their confidence and creating a win-win situation for all three stakeholders – the consumer, manufacturer and retailer.

UNDERSTANDING THE CONSUMER ! INSIGHTS THAT HELPED FUTURE RETAIL GROW:

Two big consumer trends are the growth of e-commerce and the rise of the youth. As India gets younger, retail is customising the shopping experience to make it friendly to young shoppers. A demand for convenience by this segment has led to cross-merchandising and bringing categories together so that shoppers do not have to walk long distances to fulfil one need. Not just store layout and placement, but even choice of products is influenced by the preference of young consumers.

Devendra Chawla, Group President-Food FMCG Brands, Future Group shares some insights that enabled Future Retail to stand out

A DEMAND FOR CONVENIENCE BY THE YOUTH HAS LED TO CROSS#MERCHANDISING AND BRINGING CATEGORIES TOGETHER.


Devendra Chawla, Group President-Food FMCG Brands, Future Group shares some insights that enabled Future Retail to stand out

Assortment is another trend. Stores usually have three levels of assortment – national, regional and local. A significant insight is that India lives in communities, and the taste of food changes practically every 200 kilometers. The tough part is getting the local assortment right at every store. Big Bazaar undertook this aspect with a unique activity. They declared the store open to local sellers for a limited period. The promise was to list them as sellers in 24 hours, cutting through organizational bureaucracy.

Size does matter in categories where consumers know what they want. Big packs are flying off the shelves in modern trade formats.

Shoppers think occasion, while brands think category. For instance, a housewife thinks ‘tea time’ while a brand manager thinks ‘tea category’. This insight helped the team at Future Retail create an offer that bundled cups, sugar and bhujia with tea. The brand sold 50,000 packs in a month and were completely sold out!

Globally, juice may be a breakfast phenomenon, but that doesn’t hold true for India. When reasons were analysed, it emerged that food that comprises an Indian breakfast does not go well with juice. Indians already have a lot of liquid like sambhar and gravies during breakfast, and these do not go well with cold juice. Secondly, consumers wanted Indian flavours like mango and others. Cognizant of consumer feedback, Sunkist was launched in the Indian market and has ended up growing the category instead of eating into the market share of existing brands.

Technology is at the forefront of several store innovations as it goes down well with the digitally savvy consumer. Future Retail’s Exchange Mela leveraged technology to go to people’s homes and collect the material they wanted to exchange for store coupons. Issuance of m-coupons too allowed consumers to get coupons via their mobile phones upon giving a missed call.

Gaining consumer conf idence: Efforts need to be made at winning consumer confidence through initiatives that educate, empower and involve them. Education about product ingredients, live cooking and demonstrations, and sampling can be very effective.

Connecting with consumers to create a win-win situation: The use of technology and special days that engage people, create a connection and breed loyalty. Customer loyalty cards with attractive redemption options like free talk-time and bonus shopping are winning options.

The real yardstick for a brand is the performance in-store. In order to create outcomes at this crucial stage marketers need to understand and connect with the consumer, while creating a win-win situation for the trade as well.

SHOPPERS THINK OCCASION, WHILE BRANDS THINK CATEGORY.


PANEL DISCUSSION(From left to right) Harish Bhat, Member, Group Executive Council, Tata Sons; Punit Goenka, MD and CEO, Zee Entertainment;

Piyush Mathur, President, Nielsen India Region; Kirthiga Reddy, Managing Director, Facebook India; D Shivakumar, Chairman and

CEO, Pepsico India; John Lewis, President, Global Consumer Goods, Nielsen.

C R E AT I N G O U TC O M E S WHAT IS THE CONCEPT OF CONSUMER DEMAND? HOW DO YOU IDENTIFY AND CREATE IT?

HARISH BHAT: The first step for any business or brand towards creating outcomes in consumer demand, is to align itself to some of the big consumer trends which are sweeping people. For example, over the first three decades since inception, Titan leveraged the large trend of accessorisation and continues to do so even today. The two things that Titan did very well were to capitalise on a huge trend and secondly, to work out large consumer segments with distinctive views and needs for that trend.

D SHIVAKUMAR: Building on Titan’s example, a huge distinguishing factor was their fast cycle innovation and having the right products. Over 15 years, they changed the experience of watch buying that the consumer was used to and retail was an important element. They changed the fundamental retail experience which was to go and stand behind glass counters and look at watches.


IS IT A GOOD OPTION TO LINK BACK TO THE MOTHER BRAND? WHAT SHOULD THE IDEAL STRATEGY BE?

PUNIT GOENKA: Sometimes it makes business sense to move away from the mother brand. Loyalists are used to the mother brand the way it is and are not open to sizeable modifications. It all stemmed from digitisation. Fragmentation of television viewership led to the creation of newer audience sets. The consumption of content on multiple screens combined with the necessity to offer something new to the new age viewer, led to the decision of going away from the mother brand and creating ‘&TV,’ a new entity that resulted in expanding the market. Similarly, Zindagi was created for the very exclusive market as creating ‘real’ or ‘believable’ drama for a premium market was not viable.

KIRTHIGA REDDY: There are two parts to this question, one is consumer demand and the second is our approach to building a house of brands. For Facebook, information equals innovation. For instance, it was user interaction that led us to change the static image experience to a complete photos-product which eventually became the largest photo sharing site on the web.

To build our house of brands, we want to be at the centre of connection and communication. Different ways in which this is happening include one-on-one, one-to-many, one-to-group; and it is becoming increasingly visual. This is why the portfolio consists of Whatsapp, Messenger and Instagram. JOHN LEWIS: Eventually, it is about knowing consumer groups and their needs, and then targeting those needs. The trick to build a business is to understand that each group needs a different proposition and a different feel.

D SHIVAKUMAR: At the heart of all branding, at least in India and many parts of emerging markets, is aspiration, quality and values that consumers will never give up. It is important to realise two things. First, very rarely do consumers allow brands in India to move up the ladder. Brands can move from a premium to a value offering, but not the other way round. Secondly, there are some categories that consumers intrinsically don’t give you license for because the new offering does not have synergy with the mother brand.

So as a classic marketer, you will start with the need and that’s what we should think about when we think of brands and what they really mean to consumers. But if you’re not in your core, you really have to up the values significantly on some dimensions where the consumer is compelled to buy. Else no master brand works.


IN A DIGITAL SCENARIO, HOW DO BRANDS REACH THEIR SUPER CONSUMERS, ARE THERE ANY UNIQUE WAYS OF REACHING THE RIGHT SET OF CONSUMERS?

KIRTHIGA REDDY: There are several categories that come to mind when you think of the super consumer. One is the top 10% to 20% and the other is the wider, next set of super consumers who are underserved. It depends on how each brand defines their super consumer. To achieve that for a platform like Facebook, what you really need is people-based marketing skills, the ability to reach with precision and get to that right audience with the right message. For example, Unilever managed to reach its relevant and right audience with 97% accuracy through a campaign on Facebook. People are demanding relevant content and that’s what today’s platform allows you to do.

D SHIVAKUMAR: : First of all, digital is disrupting the very equation between brand and consumer. Social media is both a medium and a community and what brands need to understand is that when consumers have a voice, which is very different from ‘Consumer is King’, especially in areas of consumer complaint etc., they become a community really quickly.

Secondly, in the digital world you earn your trust and lose your trust on a daily basis. The digital consumer is very different from your regular customer. The global digital market today is about $169 billion, TV is $169 billion and internet is about $120 billion. So it may be worthwhile to understand where our spends should really be. A simple rule of thumb could be that any brand which has less than 12 cores per annum budget will have to do 80% digital.


HOW DOES E#COMMERCE IMPACT YOUR COMPANY? JOHN LEWIS: It is among the top 2 or 3 priorities for our entire company globally. E-commerce, mobile commerce and mobile payments are a complete disruption of how people shop, discover products and how commerce is done. While we think that is a global phenomenon, ironically it is happening much faster in Asia. It is happening in China, India, Korea and Kenya more than in Europe and North America. But it is equally important to understand your position and how you are going to build your businesses in a completely upside down retail world that would happen in the next 5 to 10 years.

HARISH BHAT: It is going to play out much more strongly in some categories as compared to others. Certainly e-commerce is going to have a far stronger play in apparel, electronics and watches - primarily categories which are easy to buy and ship.

The big question would be categories like grocery and FMCG. Currently, FMCG in the grocery space, accounts for 65-70% of all retail in the country. For this segment, last mile concerns including logistics will be critical.

Consumers’ shopping habits are constantly changing. A part of the purchase cycle is on digital, whether it is checking out products and prices or browsing. There is no doubt that to cater to the consumer, every single category has to express itself in an ‘e-commerce way’.

KIRTHIGA REDDY: The e-commerce industry has been at the forefront of using digital and advertising. It stems from their ability to see the ROI all the way to sales. Our best partners and clients want to know how this is driving the brand matrix and ROI. There are now tools and solutions to see where digital spends end up. Moreover, the trend that’s being observed is not e-commerce as much as mobile commerce. We should really be talking mobile, and mobile marketing is pretty synonymous with digital marketing in the country.

D SHIVAKUMAR: Indian retail in this decade is poised for something very exciting. While modern trade is growing, e-commerce should not affect modern trade. There is a tactile experience which you need in some categories and finally, the sheer pleasure of shopping. You just have to reinvent the experience and do it right. So, India will be one of the few markets where modern trade, e-commerce and traditional grocers will all grow. A word of caution is that at this point of time there is too much money going into e-commerce without any money being made.

IN THE DIGITAL WORLD YOU EARN YOUR TRUST AND LOSE YOUR TRUST ON A DAILY BASIS. THE DIGITAL CONSUMER IS VERY DIFFERENT FROM YOUR REGULAR CUSTOMER.


IT’S TIME TO CREATE OUTCOMESDriving outcomes needs to be an organizational goal with sales, marketing, finance and media teams coming together. To this end, data and insights are powerful, but will create outcomes only when combined with foresight.

As emerging markets continue to rise, the trends of digitisation and sustainability will direct industry to viable profitability. Indian consumers are growing more confident with repercussions on their purse strings, as is evident by the growth of sectors like FMCG. Marketers can capitalize on the opportunity now that they have the tools and solutions to identify and connect with super consumers.

The relevant rules of thumb for businesses today are customer centricity, and innovation across product, processes and propositions. Efficiencies will be driven by the 3Cs - consumer, context and content. All efforts need to be reviewed constantly and measurement will be a key contributor in planning efficiencies.

All business efforts boil down to the last leg of execution. Getting strategies of store, assortment, servicing and visibility right, will help brands get ahead. With tools, direction and intelligence along the entire path to performance, the time to create outcomes is now.

Nitya Bhalla, Executive Director, Nielsen India wraps up the day’s proceedings

AS EMERGING MARKETS CONTINUE TO RISE, THE TRENDS OF DIGITISATION AND SUSTAINABILITY WILL DIRECT INDUSTRY TO VIABLE PROFITABILITY





What to most is the largest slum of Asia, Dharavi, is actually the birthplace of some gems of musical talent. ‘Dharavi Rocks’ is a joint educational music and dance project initiated by Acorn Foundation, and supported by BlueFROG, where volunteers work with slum children and rag pickers. The children’s band from Dharavi Rocks and their music mentor Abhijit Jejurikar performed at the event giving the audience some insights on striking the right chords to create outcomes that matter.

CREATING OUTCOMES FOR THE SOCIETY

Using just plastic buckets and garbage bins, children from the Dharavi Rocks troupe,

led by their mentor Abhijit Jejurikar, enthrals the audience with their performance.


ABOUT NIELSEN Nielsen N.V. (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world’s population.

For more information, visit www.nielsen.com.

Copyright © 2015 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies.

CREATE OUTCOMES - Nielsen...VUCA WORLD We live in Volatile, Uncertain, Complex and Ambiguous (VUCA)...

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Transcript of CREATE OUTCOMES - Nielsen...VUCA WORLD We live in Volatile, Uncertain, Complex and Ambiguous (VUCA)...