STAND OUT - Nielsen · CONSUMER 360 i STAND OUT Coprigt 2014 Te Nielsen Copan 3 NielSeN CONSUmer...

1CONSUMER 360 I STAND OUT Copyright © 2014 The Nielsen Company

2013

STANDOUT

2 CONSUMER 360 I STAND OUT

N i e l S e N C O N S U m e r 360 2013

STAND OUT


N i e l S e N C O N S U m e r 360 2013

STAND OUT

In a cluttered world with an ever-increasing expanse

of choice, brands that stand out are the ones

that win. There’s a maze of options in front of

consumers, and navigating them toward your brand

isn’t easy. That’s why standing out is now core to

your survival and success - whether it be to position

your brand, communicate its benefits or shape

your portfolio. Find out how some of the smartest

marketing minds move mountains using unique

consumer insight and unmatched foresight.


Piyush Mathur, President, Nielsen India Region welcomes delegates to the 2013 edition of

Nielsen Consumer 360 held at the Leela – Gurgaon, Delhi NCR


S TA N D O U T !There are a couple of reasons behind choosing Stand Out as the

theme for Nielsen Consumer 360 this year. First, the environment

that we live in today is difficult and very different from what it was two

years ago. The second is really about the hyper-competition that exists

in most sectors in India.

With regard to today’s economic landscape, there are three call-outs

that require special mention. The first one is the GDP growth which

has almost halved in the last two years. Besides being the biggest

indicator of a slowdown, it has other ramifications with the main one

being the uncertainty it creates in the job market. In fact, every one

point of fall of GDP growth below seven percent means one million

students entering the workforce will struggle to get employed.

The second one is inflation. In an environment where there is

uncertainty about jobs and high inflation, the sentiment is going to be

low. The third aspect is how most sectors are suffering at this point in

time. To take a few examples, auto sales are on a decline nine months

in a row, life insurance premiums have shown a 20 percent decline in

the Jan-March quarter and the telecom sector has seen a drop of 21

million subscriptions compared to last year. So in such a landscape,

it is paramount that just to run your business and to stay in business,

you will need to stand out.

Piyush Mathur, President, Nielsen India Region welcomes delegates to the 2013 edition of

Nielsen Consumer 360 held at the Leela – Gurgaon, Delhi NCR

in an

environment

like this, it is

paramount that

just to run your

business and to

stay in business,

you will need to

stand out.

6 CONSUMER 360 I STAND OUT Copyright © 2014 The Nielsen Company

what is your company doing to stand out and win in india?

The other big factor - hyper competition and the resulting

fragmentation is changing the rules of the game. Let’s look at the

number of TV channels in India - over 800. There is also a radical shift

in the way we access TV content. On the retail front, over the last two

years we have added 700,000 stores and now the total retail universe

stands at around 8.4 million stores. In the FMCG category alone, we

have seen nearly 60,000 new launches wherein hundreds of SKUs

keep getting added. Considering all this, imagine how difficult it would

be for a marketer to stand out in such a fragmented world.

All this leads to the fact that to survive and thrive in today’s

competitive landscape, you need to differentiate yourself. Today,

consumers are standing out because they are able to manage their

monthly balance sheet in an unprecedented way. Manufacturers and

service providers are standing out by focusing on consumerisation,

by going for the rural consumer but in the right stores and innovating

and investing for the future.

The pertinent question remains what is it that your company is

doing to stand out, and more importantly, what are you doing as an

individual to stand out and win?


S TA N D I N G O U T: E A S Y TO S AY, H A R D TO D O As some of you may know Consumer 360 is Nielsen’s premier client

event held in each of the most important markets all around the world

including Russia, the USA, China, Australia and Italy. In the year since

we last conducted Consumer 360 here in India, a lot has changed. But

then nothing seems surprising in a market as dynamic as India. This

is a country that understands change as well as any other country on

the planet. What we’ve seen dominate the Indian business landscape

over the past year is a series of adjustments. At very fundamental

levels, consumers have adjusted to softer economic conditions;

they’ve become a little more cautious, a little more selective, and a

little smarter along the way. This is what a maturing marketplace looks

like.

With consumer change comes other necessary change. Constant

adjustment of brands, new products, messaging and programming is

a requirement in a market like India. But managing all of these whilst

driving innovation and looking for what comes next, make for a big

juggling act. It’s why the theme of our event is so important. Stand

out, easy to say, hard to do. Not a single one of us wakes up in the

morning not wanting to make changes that position our businesses to

stand out. We do that in the context of fragmentation in almost every

industry.

Mitch Barns, CEO, Nielsen delivers a special video message to the delegates at Nielsen Consumer 360, 2013

managing

change

whilst driving

innovation and

looking for

what comes

next, make for a

big juggling act.


In a landscape of hyper competition, feisty consumers who are

quick to form opinions about our brands, things like technology and

insights, consumerisation trends and marketing performance are

some of the drivers that will encourage your businesses to stand out.

India remains a major investment for Nielsen. We’re investing in

neuroscience and satellite mapping of populations, social media and

also in more traditional retail measurement. In terms of innovation

where we are developing technologies, often patented technologies

begin their life here in India and then are exported to the rest of the

world.

All the economic indicators tell us that the next few years will be

different to the boom years in the first part of this century. But let’s

not let that get us down. The fundamentals and the long term story for

India remains sound. Growth in India will still clip along at a healthy

5 percent or 6 percent. Sure that isn’t the 8 percent or 9 percent that

we enjoyed in recent years, but most countries would love to have

that sort of growth. And we all know the outlook in Western Europe

continues to be challenging which only means that board rooms will

continue to look to India and the other growth markets to deliver on

revenue and margin expectations.

Now to deliver on those expectations, we believe it starts by having a

complete understanding of consumer demand. Not just the demands

and needs of today, but the unmet demand that is waiting to be

unleashed.

Prashant Singh, Managing Director, Nielsen India gives a preview of what’s in store

consumers have adjusted to softer

economic conditions; they’ve become a

little more cautious, a little more selective,

and a little smarter along the way. this is

what a maturing marketplace looks like.


Prashant Singh, Managing Director, Nielsen India gives a preview of what’s in store

AN OUTSTANDING DAY We all know that the long term India growth story is intact. But there

does seem to be a hiccup, a bump in the road, or a little bit of a

challenging time that we are witnessing today. And that’s good. That’s

good because this is the time when we can actually build a far more

engaging and intimate relationship with our consumers. But for that,

we need to make sure that our brands are standing out and our entire

focus is towards the consumer, making sure that the consumer is

paying attention to us and our brands, and is building that intimate

relationship.

BreAKTHrOUGH iNNOVATiON: WHAT mAKeS THe CUT?

Every once in a while a product or service comes along that redefines

conventional norms. Achieving these breakthrough innovations is

every company’s goal. They’re extremely profitable, can change the

basis of competition, and can reinvent companies - even markets.

As the Holy Grail that companies strive for, however, true innovation

is never easy. In fact, fewer than 50 new FMCG products in India

achieve breakthrough success each year. Combining our learnings with

the insights gleaned from marketers and industry practitioners, the

innovation session will provide a comprehensive view of how to stand

out through innovation.

10 CONSUMER 360 I STAND OUT Copyright © 2014 The Nielsen Company

THe NUmBer GAmeS: FrOm BiG DATA TO SmArT DATA

Big Data is everywhere - from financial and health services to

information technology and FMCG! While the sheer volume of

information we’re exposed to everyday can be overwhelming, the big

questions are “How do you effectively understand it, share it and

extract actionable insights to amplify your business forward. Using

actual examples, the session will share how it’s possible to effectively

navigate the big data maze and stand out from your competitors.

STANDiNG OUT: leSSONS FrOm THe PiTCH

True to the theme of Stand Out, a lot of what we learn in our daily

lives as practitioners depends on the leadership to drive it and drive

its application of it. And when we think of leadership, it’s not unusual

to try and draw a parallel between sports and business. There are

lots of lessons to be learnt, right from teamwork and management to

leadership and competence. And who better than Rahul Dravid and

his friend and fan Prakash Iyer, MD, Kimberly-Clark Lever, to get us

some notes from the field.

FrOm UNDerSTANDiNG TO OUTSTANDiNG: WHAT mAKeS iNDiA BUY?

Engaging your shopper has never been more important. And one

of the most important places to capture the shopper is at the

point of sale. But converting intent into action requires a complete

understanding of how shoppers make their choices—knowledge

that requires insight across the array of products and services they

use in their daily lives. This session will help you gain a holistic

understanding of how you can make your brand the chosen brand.

‘rrreVViNG’ UP YOUr mArKeTiNG miX

Nine million traditional retail outlets, 600,000 villages and 5000

towns - that’s India for you! Now add a fragmented media landscape

where more than 800 television channels churn out 3000+ messages

every 24 hours. Factor in the recent cap on ad duration on television

networks and you have a situation where marketers are left wondering

how to reach their customers in the best possible way. This means it’s

all the more critical to differentiate yourself to ensure your message

reaches the right audience. There’s definitely a lot to consider, and this

session on Marketing Effectiveness will lay out a framework using the

three Rs – Reach, Resonance and Reaction - that you can implement to

ensure that your product stands out in this crowded market.

HOW COmPANieS STAND OUT?

And finally, a powerful panel discussion, featuring some of the

industry’s brightest leaders gathered together on one stage. Hear from

CEOs of leading companies as they share their secrets to success,

discuss how they are tackling tough issues, and thinking about

growth.

Ranjeet Laungani, Vice President, Nielsen India explains what it takes to innovate and innovate right


BREAKTHROUGH INNOVATION: WHAT MAKES THE CUT? India is currently viewed as a hub for innovations, but success does

not come easy. While our FMCG innovation success rate mirrors

global averages, India is still a unique market.

With a retailer landscape of 8.4 million traditional trade outlets,

distribution is just one of the many challenges that companies face

when trying to meet the needs of more than one billion consumers.

In the current economic and competitive scenario, companies that

make innovation their priority and stand behind it are more successful

and stand out as compared to their competition.

Successful innovation is not formulaic, but there are patterns and

behaviours that winners share. Breakthrough innovations cut through

the clutter because they address an unmet consumer need with a

distinctive market-ready offering.

businesses

innovate or

businesses die.

it’s that simple.

Ranjeet Laungani, Vice President, Nielsen India explains what it takes to innovate and innovate right


AN EQUATION FOR INNOVATION

successful innovation is not formulaic, but there

are patterns and behaviours that winners share.

breakthrough innovations cut through the

clutter because they address an unmet consumer

need with a distinctive market-ready offering.

With the growing cut-to-cut competition that we witness across

industries especially the FMCG sector, breakthrough innovations

can be very powerful. Breakthrough innovations help delight the

consumer, help expand markets and help to add greater shareholder

value.

We carried out one of the largest studies ever on innovation in

India. Over 14,500 launches across more than 80 FMCG categories

were evaluated and only 31 breakthrough innovations emerged

victorious. That’s a success rate of only 0.2 percent. And while these

31 innovations may have come from 20 different categories, they

all stood out because they not only excelled at being distinct and

relevant, but also endured.

BREAKTHROUGH INNOVATION

+ + +IDENTIFY

AN UNMET NEED

CREATE A

DISTINCTIVE CONCEPT

EXECUTE THE RIGHT

ACTIVATION STRATEGY

DEVELOP A MARKET-

READY OFFERING

SUCCESS IS HARD TO COME BY IN INDIA

INDEX TO AVERAGE CATEGORY PRICE


So what does it take to win with breakthrough innovation in India?

And what are some of the learnings from the winners?

We found that there are five things that set breakthrough winners

apart in India:

PriCe HiGHer THAN THe CATeGOrY AVerAGe

Premiumisation attracts upgraded shopping baskets

Breakthrough innovations were priced 1.7 times higher than the

average category price. Innovations focused on premium offerings are

meeting the needs of many consumers who are eager to upgrade their

shopping baskets.

DISTINCTIVENESS

RELEVANCE

ENDURANCE

fmcg launchesin 2011

success rate for india in the

fmcg sector

14,50931

0.2%

SUCCESS IS HARD TO COME BY IN INDIA

CHARACTERISTICS OF SUCCESS

breakthroughinnovation

winners

INDEX TO AVERAGE CATEGORY PRICE

1.2X 1.7X

UNSUCCESSFUL INNOVATION

BREAKTHROUGH INNOVATION

Source: Nielsen

Source: Nielsen


leVerAGe THe POWer OF mODerN TrADe

Use channel as a laboratory for innovation

Breakthrough innovations launched in 2011 sold in modern trade

outlets saw value growth that was seven times more than all other

innovations. While modern trade represents only six percent of the

retail landscape, it tends to attract a more affluent demographic and a

more experimental shopper profile.

mAXimize THe meTrO OPPOrTUNiTY

Big cities yielded faster and bigger returns for the winners

Breakthrough innovations distributed through big cities grew

sales seven times faster and sold three times as much as all other

innovations. Money spent in metropolitan areas account for three out

of every 10 rupees spent on fast-moving consumer goods in India, and

breakthrough innovations maximized reach and velocity in these top

cities.

6 monthsvalue

growth

18 monthsvalue

growth

7X VALUE GROWTH IN MODERN TRADE

ALL INDIA

MODERN TRADE

VALUE GROWTH SOLD MORE

7X 3X

Source: Nielsen

Source: Nielsen


FOCUS ON THe NOrTH TOO

West & South have been traditional focus

While companies tend to prefer launching their innovations in the

west and the south regions of India, they also banked heavily on

success in the north region, and breakthrough innovations there

delivered value growth that was four times higher than all other

innovations in this region.

iNVeST Well iNTO THe SeCOND YeAr

Built demand by being in the right stores & supporting the product in months 6-18

Breakthrough innovations that focused on building demand and

supporting the product in the store in months six through 18 delivered

cumulative sales growth of 41 percent, compared with 11 percent

for all other innovations. Breakthrough innovations were actively

supported well into the second year.

months 6-18 value growth 2XALL INDIA

months 6-18 value growth 4X

NORTH ZONE N

S

W E

SUCCESS

OTHER

cumulative same-store sales growth

0 months 6 months 18 months

41%

11%

Source: Nielsen

Source: Nielsen


iS iNDiA SeTTiNG iTSelF UP FOr iNNOVATiON SUCCeSS?

Our information shows that adequately investing in the end-to-end

innovation process and a strong post-launch follow through can be

the difference between success and failure. A Nielsen survey of 90

innovation industry professionals from across sectors in India found

that one in three (32 percent) Indian companies spend less than 5

percent of their revenue on research and development.

One in five will launch more than 25 percent of the concepts they

generate, and 53 percent said that conflict between short-term

priorities and long-term thinking is the biggest innovation barrier.

What’s more, only one in 20 said they take feedback from retailers and

partners while developing innovations, and almost half (46 percent)

of those surveyed in the fast-moving consumer goods sector said they

deem a launch a success or failure within 12 months of launch.

5%leveraged feedback from partners and retailers to trigger innovative ideas

18%innovation timeline of more than 2 years

20%launch more than 25 percent of all ideas

32%spent less than 5 percent on R&D

53%conflicted betweenshort-term priorities and long-term goals

46%decide success or failure within 12 months

THE CLIENT PERSPECTIVE ON INNOVATION

“COMpANIES NEED TO LISTEN MORE ACUTELy TO pARTNERS AND RETAILERS, EMbRACE MORE RISk IN THE EARLy STAGES Of THE INNOVATION fUNNEL, LEVERAGE THE pOWER Of MODERN TRADE AS AN EXpERIMENTAL LAbORATORy fOR INNOVATION, LAUNCH fEWER INNOVATIONS THAT ARE bIGGER AND bOLDER AND SUppORT INNOVATIONS WELL INTO THE SECOND yEAR.”

Source: Nielsen


THE CLIENT PERSPECTIVE ON INNOVATION

PERSPECTIVES FROM THE PANEL DISCUSSION

i n d i a i s c u r r e n t ly v i e w e d a s t h e h ot b e d f o r i n n o vat i o n b u t t h e b r e a k t h r o u g h i n n o vat i o n s’ s u c c e s s r at e i s j u s t 0.2 p e r c e n t. a r e w e s u r p r i s e d b y t h at ?

PANEL DISCUSSIONFrom left to right: Pratik Pota, CEO & MD, NourishCo Beverages; Nandini Sethuraman, CMO, Bharti Retail; Jayant Singh,

Executive VP - Marketing, GSK Healthcare; Ranjeet Laungani, Vice President, Nielsen India

JAYANT SINGH: If you look at how the breakthrough innovation

pyramid works, typically 70 percent of resources of any organisation

would get invested behind incremental innovation and other 20

percent behind slightly bigger innovation and typically 10 percent

resource investment should go behind breakthrough innovations.

We need to look beyond the 0.2 number because averages hide more

than what data reveals. Within this 0.2 percent, organisations are

succeeding at five percent innovation rate and from a breakthrough

innovation point of view that’s pretty good.

NANDINI SETHURAMAN: We really don’t have enough breakthrough

innovation and that’s partially driven by the fact that consumption

growth is happening at such a rapid pace in India and that in itself

is enough to fuel the growth rates which many global players need

to post, particularly in the context of the rest of the developed world

where growth is far smaller.


g lo b a l p l ay e r s t e n d to h av e a s l i g h t e d g e w h e n i t c o m e s to b r e a k t h r o u g h i n n o vat i o n. w h at i s i t t h at s e t s t h e m a pa r t ?

o u t o f t h e 31 b r e a k t h r o u g h i n n o vat i o n s, 18 o f t h e m c a m e f r o m g lo b a l m u lt i n at i o n a l s. a n d o u t o f t h e 18, 50 p e r c e n t o f t h e l a u n c h e s w e r e i n s o m e s h a p e o r f o r m , i m p o r t s f r o m ot h e r m a r k e t s. h o w d o yo u l a u n c h a p r o d u c t a n d m a k e i t r e l e va n t f o r i n d i a ?

PRATIK POTA: The differences are slight and if you incorporate the

innovations done regionally by local entrepreneurs, you might find

the scales being more even. Global multi-national companies have

access to global portfolio knowledge, R&D capabilities, consumer

and category insights and best practices from other regions. They can

simply transplant and replicate those very rapidly. These insights are

not accessible to Indian companies even though they are MNCs. The

second thing is that Global MNCs typically tend to be more process-

oriented and place more emphasis on having a structured innovation,

stage-gate kind of process.

JAYANT SINGH: The launch of Sensodyne is a perfect example.

Sensodyne is turning out to be a winner and when we got it, we

did have a business model. We adapted the product because the

flavour, the taste experiences, the freshness experiences of an Indian

consumer is very different from that of a European consumer. So

what you really need to understand is what part of the model is

unchangeable and what part of the model should change to deliver the

success you want in the marketplace.

start-ups recognise

that when

something is 70 or

80 percent right,

it’s okay to go and

hit the ground

running rather

than wait to fine

tune the mix.


PRATIK POTA: Start-ups by the very nature of their business have

three primary constraints. There is of course the time constraint

- start-ups are in a hurry, there is a money constraint and more

importantly the people constraint. You have got a small, organic team

that just came together. So anything that you do in a start-up requires

innovation that will help you hit your goals faster with less money,

with less people. What can we learn from start-ups? The first one

is the importance of trading-off speed versus perfection. Start-ups

recognise that when something is 70 or 80 percent right, it’s okay to

go and hit the ground running rather than wait to fine tune the mix.

Some start-ups do have a process, sometimes by choice, sometimes

by compulsion given the parentage. But trading-off the process versus

flexibility within the process, I think that is something that start-ups

inherently need to do.

NANDINI SETHURAMAN: Start-ups live or die by the success of their

innovations and so failure is not an option. On the other hand, if all

that you are doing is adding on an innovation to a business that’s

already up and running, the tendency would be to walk away from

something if not really successful.

NANDINI SETHURAMAN: We live in extremely interesting times

because you have got the convergence of several things happening

at the same time. You have got an increasingly affluent consumer

base; you got a very young consumer base that is already predisposed

to voraciously consuming media and technology. And then on top

a lot o f i n n o vat i o n s i n i n d i a c o m e f r o m s ta r t-u p s a n d t h e y a r e k n o w n f o r d o i n g at l e a s t o n e t h i n g w h i c h i s to v i o l at e a l l t h e r u l e s a n d t h e y h a r d ly h av e a n y p r o c e s s. s o w h at c a n w e l e a r n f r o m s ta r t-u p s ?

i n i n d i a , t h e r e w e r e 14,509 l a u n c h e s i n o n e c a l e n d a r y e a r a lo n e . s o t h at e q u at e s to a b o u t 40 l a u n c h e s a d ay. w h y d o n’t w e j u s t f o c u s o n f e w e r, b u t b i g g e r l a u n c h e s ?


NANDINI SETHURAMAN: One of the matrix that really helps us

identify whether something is really breakthrough is incrementality

and again I go back to this opportunity that exists in India because

really there is so much to be done in terms of category creation,

category building etc., because consumption habits and patterns are

now changing and lifestyles are evolving. So depending how much

incrementality an innovation adds, I think there is a lot to be said in

terms of really leveraging that.

JAYANT SINGH: Marketers have made their job really important in the

organisation by saying insight is the big thing. And I would really want

to take this debate beyond insight because yes insight is important

but insight alone is not a predictor of success. If a lot of innovations

are failing within three to six months, my premise is that it has little

to do with the insight. It has to do with the whole mix, the execution

of it. So I think we have to look beyond insight, into our product, into

our concept, into our supply chain, into how we are distributing, into

how we are educating consumers on the in-store theatre - everything

combined is what drives innovation success.

PRATIK POTA: I absolutely endorse the point that insight is not

everything and we need to look beyond insights and foresights. But

we shouldn’t knock the importance, the criticality of the consumer

insight because an idea based on a powerful insight, even if poorly

executed will succeed but a bad idea based on a bad insight even if

well executed will definitely fail.

h o w d o yo u d i f f e r e n t i at e b e t w e e n a n i d e a t h at i s i n s i g h t f u l v e r s u s a w i n n i n g i d e a t h at c a n g i v e yo u a b r e a k t h r o u g h i n n o vat i o n ?

of that you have got new channels evolving and you have got a new

and young modern trade industry. So you have got the confluence of

several things happening all at the same time that actually provides

you a very unique opportunity to bring as much innovation as you

could.

JAYANT SINGH: Is 40 too many for India, probably now, because if

you look at most of the categories they are quite under developed

barring a few where the penetration is pretty high. And a number of

categories, specifically if you combine urban and rural, we are talking

of penetration either in single digits or low 10 percent or 20 percent.

an idea based

on a powerful

insight, even if

poorly executed

will succeed but

a bad idea based

on a bad insight

even if well

executed will

definitely fail.

Raghu Venkataraman, Head – Big Data and Digital, Nielsen India delves into the fascinating world of Smart Data


THE NUMBER GAMES: FROM BIG DATA TO SMART DATA One of the most interesting definitions of big data was by Dan Ariely,

a professor at Duke University, who said, “Big data is like teenage sex.

Everyone talks about it, nobody really knows how to do it, everyone thinks

everyone else is doing it, so everyone claims they are doing it...”

A rather harsh view on big data but an interesting definition, nonetheless.

Big Data starts with data you already have. Most of us have spent millions

of dollars putting together fairly large data warehouses. We have data

sitting in various parts of the company. We know what customers spend,

their payment history, who a good customer or a bad customer is, what

services they’ve availed of and so on. Add to this information from Customer

Relationship Management (CRM) systems, which tell us why the customer

called up and what their experience was.

Raghu Venkataraman, Head – Big Data and Digital, Nielsen India delves into the fascinating world of Smart Data


What we find is that in many companies this data sits in separate

islands. For many companies, the first opportunity is to simply try and

put together a single view of the customer across the company.

The next and more interesting opportunity is the explosion of data

from the Internet. Over 200 million people on the Internet in India are

accessing your shop windows, your Facebook page, your website, your

app and leaving behind little trails of their interest. The opportunity

here is to capitalise on these bits of information that the customer

leaves behind and create something meaningful out of it.

UNLOCK YOUR EXISTING DATA ASSETS

ADDING VALUE TO YOUR EXISTING DATA

how can i maximise internal data assets to better understand my customer?

how can i maximise my portfolio for distribution?

PERSONALISATION

REAL-TIME CHOICES

UPSELLING AND CROSS-SELLING

1

2

3

how can external data enhance my existing data to provide better solutions?


Keeping this in mind, a few important questions that you should ask

include - do you only focus on the number of clicks on your webpage?

Or do you personalise the experience for a customer who returns to

your webpage or calls back your call centre or makes a second visit

to your store? Do you recognise where he or she has been, what they

have done? Did the customer have a good experience the last time he

or she met you?

All this is possible if you bring together the data that is sitting within

the enterprise and put it into the hands of a few people who are both

tech savvy and business savvy and challenge them to take customer

experience to another level.

The second and a very exciting area in big data is the possibility of

being able to propose choices to the customer that is relevant to them

in real time. Most of us have service portfolios and product portfolios

that extend across maybe 15 to 100 SKUs or 10 different kinds of

services. But how do you identify what is relevant to a particular

customer and what choices can be offered to him when he encounters

a brand be it online or in the real world?

Another opportunity is to go beyond the walls of your enterprise.

It comes from looking at data sources available in the wider world.

This could be credit card data - what are people buying, it could be

geographical data - where are people located, what are the different

profiles of customers living across different geographies or it could

even be loyalty data.

Now if you take a look at the developed world, let’s take the US as an

example, there is in fact a marketplace for such data. You can actually

just go out and buy the stuff, bring it together, challenge your insights

team to figure out the intersection between your customer, your

prospects, your segments and get incremental insights to add value to

your company.

India is no easy marketplace. However, that doesn’t mean that you

cannot start now, because one of the interesting things about big data

is that you don’t start with the idea of ‘let me bring together as much

data as I can.’ You usually start with a business problem that needs to

be solved, offer an improved customer experience, a better channel, a

more effective channel and a more effective media plan.

The fundamental questions are - is there a business problem that I

can solve and is there a particular data set that I can go after? The

idea is that if you bring together data derived from encounters with

your own customers and add external sources of data to it, you have

a clear business opportunity, and often, you get a multiplier effect of

value to your business.

how do you

identify what

is relevant to

a particular

customer and

what choices

can be offered

to him when he

encounters a

brand be it online

or in the real

world?


There are really three main areas in the marketing domain where you

can get benefits from big data.

• Channeleffectiveness

• Precisionmarketing

• Effectivenessofthemediadollar

Amidst this, privacy is a key issue and needs to be handled delicately.

So if you are starting on a journey, where you are gathering and

sharing third-party data, make sure that it is anonymized before it

leaves the building.

MULTIPLIER EFFECT = POWERFUL INSIGHTS

INTERNAL DATA EXTERNAL DATA INCREMENTAL INSIGHTS

SOCIAL MEDIA RETAIL

BEHAVIOURAL SALES

DESCRIPTIVE SMARTPHONE

ATTITUDINAL DEMOGRAPHIC

CHANNEL EFFECTIVENESSPRECISION MARKETINGMEDIA EFFECTIVENESS


CLIENT SPEAKSrikant Sastri, Co-founder and lead investor, Crayon Data explains the best ways to harness and action Big Data

THE PARADOX OF BIG DATA: MISERY OR MAGIC In today’s world, people are presented with a host of offers that touch

their lives. From shopping to dining, consumers come across more

than a thousand offers daily, depending on the city they live in. But the

big question is - are consumers really going to use this information

when they walk into a mall or visit a restaurant? The fact remains that

consumers don’t really lug catalogues around, saying, ‘Let me figure

out who will give me a 15 percent discount and then decide on my

choice.’

In reality, much of the efforts expended in creating such products

and offers end up being wasted. Whatever category one looks at,

as consumers we have data at our fingertips. Although we can’t get

away from it, the fact also remains that we can’t make use of it. All

consumers face such misery daily due to the deluge of data.

Barry Schwartz of Harvard Business School, and a TED Speaker, talks

about ‘The Paradox of Choice’ and says that when there is a deluge

of information and a plethora of options around us, it leaves us

paralysed. Which is why, he says, ‘More is less’.

26 CONSUMER 360 I STAND OUTtype a type b type c

CAN WE SIMPLIFY THE WORLD’S CHOICE?

Sheena Iyengar of Columbia Business School (another well-known TED

speaker) says when you offer a moderate number of four to six options

to a person, he or she will then not only act on it, but also be happy with

the choice. In which case, you have a happy consumer.

If the consumer is happy, the brand begets revenues. Therefore, the

trick really is: How do brands highlight four to six optimal choices to a

consumer amongst the deluge of data he or she is inundated with. That

is the fundamental issue brand marketers need to decipher – how to

simplify a world awash with choices. Any brand that does this will stand

out through better brand switches and top-line growth. The standout

principles for brands will evolve from this particular aspect.

Moreover, there are other aspects underlining this shift. The first

one concerns Correlation versus Causation. The traditional way that

marketers approach data or decision-making is by asking: Why does

a consumer behave this way? What causes a consumer to behave in a

certain way? Many of marketers’ questions are focussed on the ‘why’.

In the era of Big Data, however, ‘why’ does not matter, only ‘what’

matters. Consider Amazon, if a customer visits Amazon a few times,

it begins making recommendations. Amazon doesn’t know why it is

making those recommendations; it doesn’t know that the customer

behaves in a certain way. Amazon has millions of data points

available across millions of consumers. It uses all this data just to

draw correlations. It knows that if the customer buys this book there

is a high likelihood that he or she will buy another book. Only the

correlation matters. Amazon does not know or care why customers

behave that way but it makes those choices available to them and

the latter takes a decision. So the fundamental mind-shift occurred

because of the focus on Correlation, not Causation.

WORKING WITHBIG DATA• SIMPLIFY• CORRELATE• DATA VOLUME• PROBABILISTIC APPROACH • CHOICE ENGINE USAGE


The second aspect concerns what the volume of data can do.

Traditionally, most marketers focus on how good their BI tool was – did

it give accurate insights and results. But what matters is how much

data marketers can throw at the tool. In other words, it doesn’t matter

whether the tool is ordinary or not. As long as one is able to churn lots

of data, it overcomes the limitations of a tool.

The third pillar of Big Data is Probability. Anyone who has seen the

game ‘Jeopardy’ on TV would know about this exercise with the IBM

Supercomputer Watson, which was pitted against the best in the game.

Watson always won. How did Watson do it? All Watson did was that

every time there was jeopardy, the answer was given and one only had

to guess the question. Every time an answer came up, Watson pulled in

all the evidence it could in real time and arrived at a probabilistic guess

that this was probably the question one should ask.

Finally, in order to facilitate better engagement with consumers,

marketers need to consider the choice engine. Let’s look at some of

the evidence. As much as 35 percent of Amazon’s sales come from

recommendations made on the site. Netflix is even higher – 75 percent

of Netflix sales in the US are due to data-driven recommendations

Netflix makes to its consumers. In other words, one doesn’t need a

retail store, or a salesperson, it is Big Data technology working its

magic.

From the fundamental principles outlined above, there are three

conclusions. One, unless harnessed effectively, Big Data can make

consumers miserable. Two, to harness this, it requires a shift to a Big

Data mindset where correlation, volume of data and a probabilistic

approach are more important. Three, by using choice engines

marketers can actually harness this power to distil choices for their

consumers.

Peer recommendationsten times more trusted

than sales people

of sales on Amazon driven by recommendations

of all hotel bookings determined by recommendations on review sites

more frequently convert to purchase than those who do not engage with recommendations

of what people watch on Netflix are recommendations

GUIDEDCHOICE

27%

35%

75%10X

353%

Source: McKinsey & Company ‘How retailers can keep up with consumers’, October 2013. IBM

SeArCH iS GiViNG WAY TO GUiDeD CHOiCe

TO PREVENT MISERY FOR CONSUMERS, BIG DATA NEEDS TO BE HARNESSED EFFECTIVELY VIA CORRELATION, VOLUME OF DATA AND A PROBABILISTIC APPROACH. CHOICE ENGINES CAN THEN BE USED TO DISTIL CHOICES AND WIN OVER CONSUMERS.


for me it (standing out) was about recognising myself and learning a lot more about myself and figuring out what my strengths are and where i could add value to the team... if you really want to be different from everyone else, you got to know and you got to understand yourself.

RAHUL DRAVID

being true to yourself, being true to what you stand for is a great way to stand out. the mistake you can make is perhaps to try too hard to be different, to say i need to standout and therefore i need to do something very differently - that’s usually a recipe for disaster.

PRAKASH IYER, md, kimberly-clark lever

From left to right: Adrian Terron, Executive Director, Nielsen India; Cricketing Legend Rahul Dravid & Prakash Iyer, MD,

Kimberly-Clark Lever talk about leadership, success & failure and on what it takes to Stand Out


Adrian Terron, Executive Director, Nielsen India gives the audience insights into the driving forces behind the Indian shopper

HOW TO INFLUENCE $20 BILLION SALES IN INDIA

Today’s shoppers are empowered by choice, and they refine their

decisions based on marketplace disruptions. Knowing which factors

motivate shoppers to action will ensure that you stand out. In a first,

we studied the evolving Indian shopper across sectors. We looked at

the affluent urban Indian shoppers’ buying habits across sectors and

found that on an average one in two shoppers change their mind from

the time they decide to buy something till they actually purchase it. In

the fast-moving consumer goods space alone, 80 percent of shoppers

will buy a different item than originally planned. This in fact translates

into an opportunity to influence $20 billion of sales in a year.

start by

un-planning. go

against the grain

by disrupting

established brand

behaviours and

make a significant

impact on sales.

FROM UNDERSTANDINGTO OUTSTANDING: WHAT MAKES INDIA BUY?


There are essentially three ways companies can stand out to shoppers

by making key strategy changes to better align with an increasingly

empowered Indian consumer.

UN-PLANNING THE PLANNING

OppORTUNITy TO INfLUENCE US $20 bILLION SALESpercent buying different than planned

fmcg movie loans auto travel

80%75%

57% 57%

42%

1. THe VirTUAl reAliTY

If you’re looking to disrupt brand behaviours and shift demand to the

tune of $14 billion in sales, leverage digital more. More than half of

shoppers, on average, across five industries reviewed (fast-moving

consumer goods, movie, travel, automotive and loans), accessed the

Internet as part of their pre-purchase decision-making process. While

the percent of e-tailing as part of total retail sales is still nascent, its

opportunity to influence opinions is high.

For the fast-moving consumer goods reviewed, more online

interactions equated to more than 50 percent less offline interactions.

For online movie planning, TV and newspaper review incidence

decreased by more than 40 percent. Conversely, Internet pre-purchase

activity incited greater personal and store-visit interactions in the

travel, automotive and loan industries. For these high-ticket items,

online activity actually extended the decision-making process.

Converting surfing to selling, however, takes more than a strong

brand. Now is the time to use Internet strategies alongside traditional

ones as part of your brand building process, as shoppers were more

inclined to buy online when they were already aware of the brand.

Source: Nielsen


ONLINE DISRUPTS ON-GROUND ACTIVITIES

DEALING WITH DEALS

HELp fORM NEW HAbITS, CREATE LEVEL pLAyING fIELD fOR CHALLENGER bRANDS

TRANSITIONING HOW yOU THINk AbOUT pROMOTIONS

2. leT’S mAKe A DeAl

Promotions have the power to persuade and influence $10 billion in

sales. A good deal can prompt consumers to buy more, buy earlier

and buy different than otherwise intended. They can also tip the

economies of scale and cash-flow management in your favour. For

fast-moving consumer goods, promotions influenced 34 percent of

shoppers to make a bigger purchase than planned, and four in 10

consumers shopped for groceries earlier than they anticipated. Across

a variety of food categories, promotions inspired more than half

of shoppers, on average, to purchase a different product than they

normally do.

Source: Nielsen

50% 15%

25%

35%

40%MOVIES less mass media as source

FMCG less offline interactions TRAVEL more interactions with friends

LOANS more bank and competition visits

AUTO more showroom visits

BUNDLING

SAVE TO SPLURGE

EXPERIMENTATION

BARGAINING

SHOPPERTAINMENT

ROLE OF PROMOTIONS TODAY NEW ROLE OF PROMOTIONS

ADDITIONAL VOLUMES

PRICE OFF


But promotions should be used tactically and strategically. They

shouldn’t be disruptive. Consider creating the right deal by promoting

it when others are not. Go beyond thinking about promotions as

simply a means to drive additional volumes and start using them to

align with consumer experiences during their path to purchase. For

example, tap into consumers’ natural curiosity to experiment with new

products and offer savings incentives that drive unplanned buying

opportunities. Think about offering promotions on regular-use, low-

differentiated items because consumers love to save to splurge. And

time your promotions to create consumption opportunities that make

routine and festival purchasing patterns more exciting.

3. QUAliTY CONNeCTiONS GO FrOm TrANSACTiONS TO TrUST

Delighting consumers with a good experience can turn a plan into a

purchase. In fact, positive staff interactions in the automotive sector,

for example, prompted three-quarters (73%) of shoppers to change

their initial purchase decision. What’s more, it prompted pleased

patrons to tell others about their experience. This kind of brand

advocacy prompts positive feelings that extend far beyond the initial

sale and often represents the life-blood of strong brands.

PLEASED PATRONS TELL OTHERS

pERCENT ADVOCACy UpLIfT WHEN SHOppERS ARE DELIGHTED WITH INTERACTIONS

auto

4.8 xmovies

1.9 xloan

1.3 x

2.2 x travel

1.6 x fmcg

Source: Nielsen


You have the power to create offline social networks with satisfied

shoppers. Delighted shoppers were two times more likely to advocate

for fast-moving consumer goods, movie and travel brands and

five times more likely to support automotive brands. Continue the

conversation online by creating the same enjoyable experience for

your shoppers virally.

Elevate the experience from sales to servicing by being a trusted

advisor for customers. Offer comparative advice during the sales

process and ease the sometimes difficult product-upgrade process by

helping your customers understand the benefits. When it comes to

quality connections, it’s about getting down to the basics—be friendly,

approachable and never rush to close the deal.

PLEASED PATRONS TELL OTHERS

brand advocacy by

satisfied customers

prompts positive

feelings that extend

far beyond the

initial sale and often

represents the life-

blood of strong

brands.


PANEL DISCUSSIONFrom left to right: Kirthiga Reddy, Head, Facebook India; Avik Chattopadhyay, Marketing Head, Volkswagen India; Anisha Motwani,

Director & CMO, Max Life Insurance; Adrian Terron, Executive Director, Nielsen India


s ta n d i n g o u t to t h e i n d i a n s h o p p e r

ANISHA MOTWANI: It’s all about theme versus scheme. The

challenge that the marketers mostly face is how to optimise and

balance out what you invest in and brand building initiatives or what

we call thematic communication. And how much do you invest in what

you call schemes and promotion - schematic communication. It is

important to do both, but in what proportion varies from category to

category.

The second thing that you need to take a call on is how do you

schedule them out in a year. There is no formula but analytics of your

own brand and of your own category will give you the right optimum

mix be it in terms of spends, scheduling, or messaging which is the

third most important thing. How do you carry forward the same

message such that the theme doesn’t look like its emerging from

some different space altogether or the scheme doesn’t look aligned

with the brand scheme.


AVIK CHATTOPADHYAY: The marketplace reality is that today the

cost of acquisition of a customer is going up by leaps and bounds.

A primary factor for this is due to lack of differentiation - when

the consumer finds it very difficult to differentiate between the

proposition or the very clear personality of one brand versus the other.

Brands need to blend in; they need to understand the consumer from

the perspective of the consumer. You need to create that fine balance

between what you communicate as a brand, what you communicate

about your values and what value you offer the customer.

KIRTHIGA REDDY: What we are seeing over the course of time is

definitely a blend of the theme and scheme. So traditionally what

happens when there is a major promotion, you see spends at a

higher level during that time before going back to previous levels.

Standout brands that create a loyal consumer base do that by steady

engagement over a period of time.

from ‘engineering’ to ‘engagement’

AVIK CHATTOPADHYAY: There is a fundamental shift which we are

seeing – the need and the want to transcend from engineering into

engaging. Today, brands and companies have to basically be with the

customer right through the entire ownership cycle of the product,

almost from the cradle to the grave.

ANISHA MOTWANI: It’s become now almost generic to say that you

need to engage with the customer. But what do you engage with is the

biggest challenge, how would you decide this is the aspect you want

to engage in? In a high involvement category like automobiles, yes

you can involve him in the product - but in many other categories, like

FMCG or financial products it’s far more challenging.

in sync with the consumer

AVIK CHATTOPADHYAY: If the point of sale and the purchase process

is changing in all other product categories, why shouldn’t it change

for automobiles too? Is it just because we are imposing certain

conventions and traditions (visit to showrooms) that the customer is

forced to observe? I guess a successful brand here would be one that

would differentiate and would have the guts to try out a new kind of a

retail format to differentiate itself.

• STRIKING THE OPTIMUM BALANCE BETWEEN BRAND-BUILDING AND PROMOTIONS• NOT A TRADE-OFF, BUILD A SYMBIOTIC RELATIONSHIP• TRULY BLEND IN, BRAND TO BECOME A PART OF THE ETHOS OF THE THEME• DECODE CHARACTERISTICS, VALUES AND NEEDS TO BUILD THE THEME• WHO’S THE PROTAGONIST: PRODUCT OR OCCASION?

THEME VS. SCHEME

create a fine balance between what you communicate as a brand, what you communicate about your values and what value you offer the customer.


building communities

KIRTHIGA REDDY: Communities are important and your fan base

is important. Nielsen’s studies have shown that they buy more than

non-fans and have a greater brand penetration than non-fans. But

make sure you understand how it ties into your business objectives.

You can’t put all your focus on a community, you got to make sure

that you balance the attention to your fans and help them be your

brand advocates and helping with word-of-mouth and scale. You have

to realize it’s actually more about reaching the remaining 90+ percent

using this community than about the community itself.

AVIK CHATTOPADHYAY: I think the automobile or any high

involvement product has always thrived on building communities as

a key pillar to its success. There are so many successful concepts,

service brands, product brands which have possibly transcended the

mother brand because they have built successful communities.

KIRTHIGA REDDY: There are two fundamental points that we have

seen brands using successfully to standout to the Indian shopper.

The first one is to focus on the customer specifically optimising for

reach and the second point is about reach - every day, everywhere. You

no longer have to wait for a specific period of time in the evening to

reach a massive critical audience with a right message; you can do it

all day. And we are finding marketers who stand out using mobile as a

cornerstone of their strategy in order to achieve this.

the idea here is

to see the entire

process from

the perspective

of the customer,

what does the

customer want?


Gayathri Swahar, Director, Nielsen Neurofocus (Left) and Nitya Bhalla, Executive Director,

Nielsen India elaborate on The Triple R Framework for Marketing Effectiveness

‘RRREVVING’ UP YOUR MARKETING MIXIMPLEMENTING THE REACH, RESONANCE AND REACTION FRAMEWORK

Like the country itself, India’s media and retail markets are dynamic

and rapidly evolving—marked by increasing media fragmentation,

the spread of advanced mobile devices, higher connectivity, and huge

growth in product options at retail outlets. And these changes present

a challenge for marketers to reach and resonate with consumers for

the all-important reaction—a sale.

CHANGING MEDIA AND RETAIL LANDSCAPE

SMARTPHONES TV CHANNELS PRODUCTS MESSAGES

51Murban india

8Xsince 2007

3000+per day

800+

+1B Population, 6,000+ Towns, 600,000+ Villages, 10M Retail Stores


On the media front, India currently has more than 800 television

channels, spanning audiences with both mass and niche interests.

Smartphone penetration has also skyrocketed. Today, 51 million

urban Indians own smartphones—up an astounding 89 percent from

2012. Retail shelves have eight times more products available now

than there were six years ago. With more and more products being

advertised across the country’s growing media, the average Indian

consumer sees over 3,000 marketing messages per day.

At the same time, while economic growth in India is still strong by

global standards, it has slowed. This has driven marketing budgets

down across fast-moving consumer goods (FMCG), challenging

marketers to think differently about how to make brands stand out.

reACH, reSONANCe AND reACTiON

To get the right messages to the right audiences and drive all-

important sales, Nielsen’s “Three R” framework of Reach, Resonance

and Reaction is an effective way to evaluate advertising campaigns.

• Reachmeasureswhetherthecampaignwasrelevant,andwhetherit

reached the intended audience.

• Resonancedeterminesifthecampaignmessageinfluencedthe

audience, and if it improved the consumer’s opinion of the brand.

• Reactionlooksatwhattheconsumerdidafterseeingthead,andif

the campaign influenced a purchase decision.

REV UP YOUR MIX WITH THE THREE R

REACH RESONANCE REACTIONright audience influence opinion impact behaviour

s


When planning distribution strategies across India, reaching the right

stores is critical. Out of eight million FMCG retail outlets in urban

India, 2.3 million drove 80 percent of sales. In rural India, 11 percent

of outlets across 600,000 villages drove 60 percent of sales. Similarly,

6000 Middle India towns (towns with a population of 1 -10 lakh) are

critical to reach out for maximum impact. In both these markets, if

picked carefully, we can enhance the efficiency gain with our reach.

Across the global media landscape, Nielsen research shows that

the first seven seconds of an ad are the most crucial in capturing

a consumer’s attention and can boost a consumer’s opinion of the

brand by 15 percent to 20 percent. With the power of the remote

when in front of the television, and the ‘skip ad’ facility online, the

first few seconds have to communicate the intended message and

enable a connect with the brand. This information is processed at a

subconscious level – one at which even the consumer is not aware of!

An optimal ad frequency is also paramount in breaking through to the

audiences, as too many ad runs can hurt effectiveness - also known as

the “wear out” effect. In fact, as few as 15 percent of the ad campaigns

Nielsen evaluated actually benefited from increased frequency.

Ads that are of a shorter duration, are imperative to optimise media

spends. With 10 second ads becoming the norm, each second needs to

be effective, persuasive and connect on the key message of the brand.

DID MY CAMPAIGN RESONATE?

fOUR OppORTUNITIES TO RESONATE WITH yOUR AUDIENCE

MIND THE CRUCIAL 7

CONNECT bEyOND CONSCIOUS

ONE SIZE DOES NOT fIT ALL

SHORTER COULD bE bETTER

Up TO 25% MORE EffECTIVE

ONLY 15% Of ADS bENEfIT fROM fREQUENCy

EDIT WITH THE SECONDS THAT MATTER

80% Of ADS DON’T HAVE DESIRED RESONANCE

WITH 10 SECOND ADS BECOMING THE NORM, EACH SECOND NEEDS TO BE EFFECTIVE, PERSUASIVE AND CONNECT ON THE KEY MESSAGE OF THE BRAND.


STANDiNG OUT iN reTAil

For brands to stand out in India, retailers should appeal to their

consumers’ desire to leverage life’s little moments of luxury and

connect with how their customers are shopping. In-store promotions

and deals are a long-favoured strategy, and for good reason - half of all

Indian shoppers search out promotional items. But, premiumisation

is also critical in this market, with 40 percent saying they actively seek

out upgraded products.

The retail environment can trigger reward centres in the human brain

and make it more pleasurable and euphoric. This may be true for a

consumer on the purchase of a luxury car, or a first big purchase. Any

campaign that creates differentiation, that people have spent time and

labour on also creates a similar feeling. Two in five shoppers search

for premium products; the challenge for a premium product is the

general price in elasticity, although this changes marginally as the

intensity of competition increases. For your brand to resonate with

your consumer, while in-store, leverage little moments of luxury for

them.

DOES MY PRODUCT RESONATE WITH CONSUMERS?

LEVERAGE LITTLE MOMENTS Of LUXURy

MORE

VARIETy

pURpOSE

CUSTOMISE

AESTHETICS

TIME & LAbOUR

CARE & DETAIL

RARE & UNIQUE

60% in-store purchases influenced

1 IN 2 look for promotions

WIDE RANGE is equity driver

2 IN 5 search for premium

Source: Nielsen


UPLIFT FOR EVERY DOLLAR SPENT

ONLINE DELIVERS HIGHEST ROI IN ASIA-pACIfIC

tv online magaZine newspaper radio

Reach and resonance can come together from a marketing as well

as sales perspective, to understand the reaction, the return on

investment (ROI) needs to be measured.

For every rupee spent, television gives a 60 paise return, and

maximum returns are seen in the burgeoning online industry (1.23

paise on every rupee). While companies are making investments in

digital platforms, from television, this should not be done for the

quantum of reach that television has in comparison to digital.

for your brand to resonate with your

consumer, while in-store, leverage

little moments of luxury for them.

0.60

1.23

0.94

0.540.76

Source: Nielsen


The digital platforms are being used to target products for youth and

children. Till last year it was less than 10 percent of total spends and

now it has reached a threshold of 30 percent for some of the premier

companies. The media planning depends on the desired audience we

want to reach and hence the media vehicle differing by brand and by

industry coupled with the penetration of the media vehicles. There is

merit in media vehicles being used in conjunction, as that pulls up the

return on the rupee overall.

Hence if we were to look at the Triple R framework along with the two

levers it essentially boils down to the following 4 by 4 grid. How do

you ensure your messages reach the right audience ? Did the message

resonate well? Similarly from a sales standpoint, did we reach the

right store effectively, did our in-store activation lead to desired uplift?

REVVING UP YOUR MIX

MIND YOUR

CHANNEL

CONNECT BEYOND THE CONSCIOUS

OCCUPY THETOP

RESONATE WITH

THE LITTLE MOMENTS

REACH

RESONANCE

REACTION

Source: Nielsen


Anil Viswanathan, VP Marketing – Chocolates, Mondelez India gives a different perspective on Standing Out

STAND OUT: DO NOTHING NEW A MONDELEZ CASE STUDY

The Mondelez portfolio includes Cadbury and Cadbury Dairy Milk,

a name that has been synonymous with chocolates in India. In the

current inflationary and competitive business environment, the

company faced a challenge in growing this core business, and staying

relevant to today’s consumer.

a different take on stand out - in a

cluttered world, nothing stands out better

than a compelling message that remains the

same but is told in new ways.

CLIENT SPEAK


THe CHAlleNGe

The challenge was - how do you make a core which is compelling,

which excels in the field that it operates in, and how do you keep

nurturing it, making it stronger, making it adapt but yet always staying

true to the core? The company chose to stand out and innovate on

the Cadbury Dairy Milk brand by retelling its core message, but in

different and compelling ways. The focus was on staying true to the

original message of ‘Kuch meetha ho jaye’, while creating a unique

identity for itself, along with a great relationship with consumers.

THe STrATeGY: CATeGOrY re-FrAme

It was in the 90s that the company released advertising campaigns

that created a connect with both teens as well as adults besides taking

the product to the street for the consumer. The company had also

released a product with a lower price point that helped push their

growth in the segment. This growth sustained itself till 2005, post

which the company witnessed a slowdown.

The Cadbury Dairy Milk team chose to revisit its core messaging

and product, and went through a process of category re-frame, to

position chocolate as an alternative to the traditional Indian sweet,

on appropriate occasions. The term ‘kuch meetha ho jaye’ came into

being, as an extension of their brand legacy.

The concept has now been in use for nearly a decade, with campaigns

that are focussed on creating an occasion for consuming chocolate.

Concepts like ‘Pappu paas ho gaya’ and ‘Shubh Aarambh’ have struck

a chord with the consumer, and are now a part of the brand and

cultural connect.

The brands credibility increased with consumers, with the creation of

new occasions to consume chocolate. To stand out, we need to remain

true to the core, to consumers, we strengthen their relationship

with the brands, and advertising helps form a critical link with the

consumer.

the focus was on staying true to the original

message while creating a unique identity for itself,

along with a great relationship with consumers.


From left to right: Viren Popli, Executive VP, Mahindra Two Wheelers Ltd.; Shashi Sinha, CEO, IPG Mediabrands, India;

Piyush Mathur, President, Nielsen India Region; Utsav Seth, CEO & MD, Pavers England Ltd. and Venkatesh Kini,

Business Unit President, India & South West Asia, Coca-Cola

VENKATESH KINI: Built young leadership teams. There are leaders

who have gone into his leadership team - all in their early 40s.

UTSAV SETH: Responsible for getting Pavers England the crown of

becoming the first 100 percent FDI in single brand retail in India.

SHASHI SINHA: Committed to the industry and is on almost every

industry forum linked to media including Advertising Standards

Council of India, BARC, IBF and ABC.

VIREN POPLI: Worked in multiple industries building different

businesses. Managed India’s first all-girl band ‘Viva’.

HOW COMPANIES

STAND OUT

A STAND OUT PANEL



to s ta n d o u t i n to d ay ’s m a r k e t, h o w d o yo u g o a b o u t i n n o vat i n g, t h i n k i n g d i f f e r e n t ly, c o m i n g u p w i t h s o m e o f t h e f e at u r e s t h at n e v e r e x i s t e d i n yo u r c at e g o r y b e f o r e ?

VIREN POPLI: The two-wheeler business is one of the toughest

environments in India, it is well-established, well-entrenched with

strong and powerful brands. Given the existing battle for mileage,

riding convenience, comfort, service, sales experience, there was

limited scope to differentiate our product on these fronts. We realised

that everyone in the two wheeler space was innovating along one axis

and that was when the vehicle was in motion from point A to point B,

but nobody was innovating the vehicle itself when it is not in motion.

We videographed consumers to understand their behaviour, this

revealed insights like consumers shake their bikes every morning to

figure out how much petrol is left; we looked at other aspects like the

ability to locate your bike in parking lots, specifically in winter months

when it gets dark pretty early or when your bike has been moved from

where you had parked it.

With such Aha moments, we designed a bike with the first anti-theft

and ‘find me again,’ something that we are so used to in cars. We

added a distance-to-empty indicator in the vehicle. We innovated on

the key, to come up with the flip key which is so ubiquitous in cars. In

fact, the customer feedback we got was “aapne two-wheeler ko four-

wheeler bana diya hai”

everyone was innovating when the vehicle was in

motion, but nobody was innovating when it was not.

“AAPNE TWO-WHEELER KO FOUR-WHEELER BANA DIYA HAI”

CUSTOMER SPEAK:


h o w w o u l d yo u m a n a g e t h e c u lt u r e o f yo u r c o m pa n y, o n e w h e n i t i s a l a r g e g r o u p w i t h i n d e p e n d e n t c o m pa n i e s u n d e r i t, a n d s e c o n d d u r i n g a m e r g e r ?

SHASHI SINHA: When I had to lead a group of companies, which

till then had operated independently and sometimes even competed

against each another, the first thing I did was to get the leadership

team together and told them to forget the past and emphasised the

need to work together. There were two other things that I laid out -

one was that there has to be a common strategy - deliver on quality.

The second was a focus on common culture. One may stand for

different brands, different things, but you must stand for a common

culture, and the culture is to be nice to your people; the rest will fall

into place.

VIREN POPLI: I think an acquisition is the toughest thing you’ll do in

a business. The financial negotiation, legal part is actually the easy

part. It takes about two to three years before you can truly say that the

companies are integrated with a common culture, common values,

and common systems.

VENKATESH KINI: My favourite example of innovation is Sprite which

we launched in India in 1998. I remember when people said “Yahan pe

clear lime koi nahin peeta hai”. People couldn’t even pronounce the

name properly. From launching it in its distinctive green bottle with

dimples, with a very different communication, advertising and approach

to market, we were able to make Sprite one of the biggest brands in

the industry today. We saw what everybody else was doing and then

completely turned the market on its head.

UTSAV SETH: For us it was selling comfortable shoes to people who

have already been wearing shoes for years. But when we looked closely

at the market and the consumer, we realized that there are elements

of comfort that were not there at all. For example, the lining inside the

shoes which adds to comfort was missing. We rolled out this product

called ‘super flex’ which gives 48 hours of comfort - wear it and forget it!

we saw what

everybody else

was doing and

then completely

turned the market

on its head.

“THE MOST DIFFICULT THING TO DO IN THIS WORLD IS TO BE SIMPLE.”


Utsav Seth, CEO & MD, Pavers England Ltd. (left) and Venkatesh Kini, Business Unit President,

India & South West Asia, Coca-Cola

BUILDING CUSTOMER LOYALTYUTSAV SETH: Customer loyalty is an important and a very close

subject to me personally. We had to take this call right at the

beginning that we are working on building a brand not just selling

shoes. Keeping the customer at the centre of the whole organisation

has been the key aspect for us. We have launched this initiative, which

provides lifetime service support. You buy our product, if you have a

problem, doesn’t matter where or when you have bought it; we will

repair it for you. This is creating a very good customer response for us

as customers feel that they are investing in a reliable product and this

is a sustained stand out point for us.

VENKATESH KINI: We realised that a lot of retailers, small mom-

and-pop retailers in India like kirana shops, are facing competition

from modern retail and are also worried about it. So we started this

program called Parivartan, where we have buses converted into small

‘training rooms’ with about 25 -30 seats with a projection screen

and trainers. We take these buses across the country and we recruit

retailers to come and spend 2-3 hours in that bus getting trained on

every aspect of retailing. It’s not about retailing our products but

how to manage their stores using modern techniques, using basic

inventory management, cash management, how to negotiate with

suppliers and manage customer flow. We found that 2-3 hours of

training makes these retailers not just confident about their business

but also become loyal to us. We’ve now trained nearly 190,000 across

northern India and our plan is to nearly extend that to a million

retailers in the next 4-5 years. So that is an example of building loyalty

with the channel not just with the consumer.

keeping the

customer at

the centre

of the whole

organisation

has been the key

aspect for us.


MANAGING PRICING DURING A SLOWDOWNVENKATESH KINI: We offer all our products in a variety of packs,

across channel types and to a wide range of audience - from a prime

minister to a farmer to anybody in the city. So how do you market

a product that appeals to people across the spectrum? We identify

occasions where consumers drink our products. An occasion could

be you are out and about on the street, it’s hot and you want a quick

refreshing break. In that occasion what is the brand that you want the

most. What is the ideal serve size? Is it 200 ml, 300 or 400 or 500 ml?

If you happen to want something to carry with you on a bus or a car

journey you will take it in a resealable pet pack and you drink it on the

go. So depending on the occasion, depending on the need, we design

the brand pack and price it to meet that need. So it’s really how you

manage the brand pack price, channel combination so that your entire

portfolio is profitable even though different packs and different brands

make different margins. But the overall revenue management across

the portfolio is what makes all the difference.

SHASHI SINHA: The art is managing a throughput and an ecosystem

at the right price point. Amul for example has mastered this art of

giving quality products at a good price point. Affordable pricing

doesn’t necessarily mean you are compromising on margins if you

have the infrastructure and the throughput in place.

THE DIGITAL CONSUMERUTSAV SETH: There is definitely going to be a huge upside with

ecommerce, but there are logistical challenges in India which are big

bottlenecks. We have to be very careful because distribution of lifestyle

products and getting them delivered in 2 tier and 3 tier cities is not

easy, and the cost of customer acquisition is very high.

VENKATESH KINI: It’s really about creating an organisation like a

social enterprise. We can have conversations with consumers but

also leverage the digital world to get insights and information from

different consumers. But the bigger opportunity is connecting to

consumers through digital marketing, using mobile as a platform

and of course through Facebook and other social media vehicles to

connect with consumers.

affordable

pricing doesn’t

necessarily

mean you are

compromising

on margins if

you have the

infrastructure

and the

throughput in

place.


VIREN POPLI: Another part of the internet is dealing with ‘Influencers’

who don’t necessarily buy my products but might influence what the

world thinks about my product. Then we have our existing customers

who we largely connect with for problem resolution, community

building and convenience services and finally the sum total of these

two is to attract new customers. But for us, the first two are more

important, the by-product of that are new customers coming in.

PIYUSH MATHUR: One way to stand out is to really think beyond your

category, beyond your industry and see some of the best practices or

I might even call it the next practices that are happening and try and

see and put the lens on your own industry, your own category and see

what can be done. I think you will find so many great insights that

would be very relevant for you.

From left to right: Viren Popli, Executive VP, Mahindra Two Wheelers Ltd.; Shashi Sinha, CEO, IPG Mediabrands, India and;

Piyush Mathur, President, Nielsen India Region

“DEAL WITH ‘INFLUENCERS’ WHO DON’T NECESSARILY BUY MY PRODUCTS BUT MIGHT INFLUENCE WHAT THE WORLD THINKS ABOUT MY PRODUCT.”


Roosevelt D’Souza, Executive Director, Nielsen India distils the insights shared over the course of the day

THE WISDOM OF STANDING OUTA billion choices for a billion consumers demand that you got to

stand out if you want to win in the Indian marketplace. Especially with

hyper-competition and challenges faced thanks to the current market

situation, winners need to differentiate themselves to stay ahead of

the rest.

India has a very young population with growing aspirations, and is

also one of the fastest growing markets, which means you need to

constantly innovate and adjust to meet the ever-changing consumer

preferences and requirements.

Brands and organisations today need to use cutting-edge consumer

insights to strategize marketing and distribution plans. Whatever you

do, you have to compel the consumer to make your brand the chosen

brand. Consumers are becoming smarter and it’s the relationships

that you build with them today that will help you Stand Out tomorrow,

and in the future.

whatever you

do, you have

to compel the

consumer to make

your brand the

chosen brand.


about nielsen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence and mobile measurement. Nielsen has a presence

in approximately 100 countries, with headquarters in New York, USA

and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2014 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.

The views and opinions expressed by clients in this feature are their

own and do not necessarily reflect those of Nielsen. This feature

attempts to give you a snapshot of the various sessions at the

Consumer 360 event. All data provided is for informational purposes

only.

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