Monday, December 26, 2011

ONLINE GAMES, A PATH TO YOUNG CONSUMERS

Like many marketers, food companies are now using multimedia games, online quizzes and cellphone apps to build deep ties with young consumers.

Deep into one of her favourite computer games, Lesly Lopez, 10, moves her mouse to click on a cartoon bee. She drags and drops it into an empty panel, creating her own comic strip. Lesly likes this online game so much she plays twice a week, often emailing her creations to friends. “I always send them to my cousin in Los Angeles,” she said. But this is not just a game – it is also advertising. Create a Comic, as it is called, was created by General Mills to help it sell Honey Nut Cheerios to children.

Like many marketers, General Mills and other food companies are rewriting the rules for reaching children in the Internet age. These companies, often selling sugar cereals and junk food, are using multimedia games, online quizzes and cellphone apps to build deep ties with young consumers. And children like Lesly are sharing their messages through email and social networks, effectively acting as marketers.

When these tactics revolve around food, and blur the line between advertising and entertainment, they are a source of intensifying concern for nutrition experts and children’s advocates – and are attracting scrutiny from regulators. The Federal Trade Commission has undertaken a study of food marketing to children, due to be out this summer, while the White House Task Force on Childhood Obesity has said one reason why so many children are overweight is the way junk food is marketed.

Critics say the ads, from major companies like Unilever and Post Foods, let marketers engage children in a way they cannot on television, where rules limit commercial time during children’s programming. With hundreds of thousands of visits monthly to many of these sites, the ads are becoming part of children’s daily digital journeys, often flying under the radar of parents and policymakers, the critics argue. “Food marketers have tried to reach children since the age of the carnival barker, but they’ve never had so much access to them and never been able to bypass parents so successfully,” said Susan Linn, a psychiatry instructor at Harvard Medical School and Director of the Campaign for a Commercial-Free Childhood, an advocacy coalition.

Linn and others point to many studies that show the link between junk-food marketing and poor diets, which are implicated in childhood obesity.

Food industry representatives call the criticism unfair and say they have become less aggressive in marketing to children in the Internet era, not more so.

Since 2006, 17 major corporations – including General Mills, McDonald’s, Pepsi, Coca-Cola and Burger King – have taken a voluntary pledge to reduce marketing of their least nutritious brands to children, an effort they updated last year to include marketing on mobile devices.

The companies have good financial reason to pitch to children. James McNeal, a former marketing professor at Texas A&M University, estimates conservatively that children influence more than $100 billion in food and beverage purchases each year, and well, more than half of all cold cereal purchases. Children “have power over spending in the household, they have power over the grandparents, they have power over the babysitters, and on and on and on,” said McNeal, who has researched family behaviour for decades and consulted for major companies on marketing to children. “All of that is finally being recognised and acknowledged.”

Some parents, like Lesly Lopez’s mother, Toribia Huerta, 26, say the online marketing is subverting their efforts to improve their children’s diets. Huerta said Lesly and her younger siblings pester her for sugary cereals they see in the games and for snacks like Baby Bottle Pops, a candy with a game site that the girl also visits often. “They ask me for it constantly. They’re hard to resist when they whine,” Huerta said, speaking in Spanish through a translator.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

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IIPM: Indian Institute of Planning and Management
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Planman Technologies

Friday, December 23, 2011

“Four pillars of success”

Through a gamut of marketing strategies, Kamal Nandi is looking to build a strong recall for brand Godrej in the appliances space

When Kamal Nandi took up responsibility as VP Sales & Marketing, Godrej Appliances in 1997, its business was witnessing severe competition from South Korean majors LG and Samsung. His prime challenge was to rejuvenate Godrej into a youthful & contemporary brand. He talks to deepti singh on the progress so far:

Godrej has a vision to regain leadership in the durable space in India. For the same, how do you lead and motivate your team?
The biggest challenge has been to first create a good team and then build ownership amongst them of a shared dream. Talking of leadership style, I think I have a mix of a pragmatic and a democratic style of leadership. I have always focussed on four pillars for success – optimism, transparency, empathy and empowerment. We have built a homogenous and winning team by inducting professionals from diverse industries like advertising, retail, market research and consumer durables.

How do you compete with brands like Samsung and LG who have overtaken many successful brands in India? Who do you consider your immediate competitor?
When you are pitted against the multinational giants, your best armoury is to understand and connect better with the Indian consumers. Godrej has been pioneering technologies and features, which are relevant to Indian consumers, their habits and lifestyle. Our immediate competitor is Whirlpool, which operates in similar business spheres.

After the success of the LCD TV-cum-game console, what new innovations and portfolio expansions are you now planning?
Godrej’s appliances division is always looking for more innovations in our products. Smart appliances are in demand and seeing substantial growth as customers are seeking more convenience and control over their products. The television market in India is currently around 13 million units per annum. Our aim is to capture 5% of this market in the first year of operations. We are also expanding the portfolio to cooking ranges & water purifiers. Apart from building on our existing appliances range, this will help create synergy with group firms such as Godrej Interio, which makes modular kitchens.

How does the immediate marketing scenario look? How are you planning your growth amidst this scenario?
The current scenario is a bit depressing, given the global economic uncertainty and the Indian inflationary trend. Consumers are retreating to the recessionary mindset. Given their shrinking discretionary spends; consumers are postponing/curtailing their purchases and trying to conserve in this environment. Our strategy has been to aid consumers with better finance options to help them meet their aspirations. For example, for the festive season, offers like “Upto 100% Cash Back” on the appliances purchased have been launched. Going forward, in a stable economy, we will focus on launching revolutionary and convergent products across categories and services relevant to Indian sensibilities to drive preference for brand Godrej.

How do you manage your work and personal life and how critical do you consider this issue?
I think, it is critical to have a proper work-life balance to be professionally effective and efficient. I have always tried to give equal importance of time to both work and personal life and have not allowed one to interfere with the other.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
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IIPM's Management Consulting Arm-Planman Consulting

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IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
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Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies

Friday, December 16, 2011

What makes a great marketing maverick?

In this cover story, the legendary Alyque Padamsee expounds on the things he is most passionate about – advertising and marketing. Critically, he puts forth the pillars that make a great marketing icon – those who find their rightful place in 4Ps B&M’s Annual Hall of Fame Issue.

My lifelong stint with theatre and the ad world has taught me that in theatre, you have the freedom to be your own boss and to do, what you want to do – whereas in the advertising world, you have to work in a highly disciplined manner. You have to first listen to your client who is investing a huge amount of money on advertising and then you have to persuade your client to like the idea and to make him believe that it will work for his brand. However, advertising teaches you the discipline of thinking. It taught me too. This is something I never had before.

For any great marketing head, it all starts with research, research and more research – in fact, it is the most important thing he has to undertake. A thorough knowledge of your target customer’s perspectives is most important. Only when you understand your customers, can you generate a convincing idea for the brand’s product. The next step is to find out how your target group will notice your brand and not get swooned over by your competitor’s brands. You need to choose the right channels for that.

Advertising is a very creative art. But it has an objective – to sell your products. Regardless of how many awards a creative may win, the quality of an ad is only revealed by the amount of sales it has been able to deliver. For if it does not sell, it is only a failure. When I was proposing the idea of a new product (Fair & Handsome) for men, everybody thought I was joking. But I was serious. Research told me that by design or inadvertently, 35% of the consumers of Fair & Lovely were men. And it is because it’s not only women who would like to appear beautiful, but men too had the desire to be better at appearances; just that the desires were hush-hush. So when we launched Fair & Handsome, it was an instant hit. It delivered an annual sales figure of Rs.100 crores. It is by far the most successful brand launch in the personal products range in the last 10 years. Great marketing heads ensure that when they communicate with their target customers, they see to it that the idea is absorbed by the customers and that it connects the brand to them.

When I launched the Hamara Bajaj campaign, the sales significantly shot up. The same was the case with Liril soap. Consumer behaviour is not always based on their rational choices. A lot of times, they go by their emotions. For instance, Liril was not a rational product, but more of an emotional product. People loved the idea of freshness. And freshness is a feeling that was projected by Liril’s ad, which said that the soap will give you this feeling. And so with Liril ad campaign, the lady who was taking a shower in the waterfall symbolised a customer having a good time. The idea connected with the masses as they too wanted freshness. Ultimately, the product was a success. Similarly, MRF was at number 9, and when the muscle man campaign came in, it went up to top the charts. In contrast, in Nimbooz, the addition of lime was a rational appeal to the consumer.

The ever changing and highly evolving markets of today have made it very difficult for today’s marketing heads to be efficient with their money spent. And the figures are huge. More than 50% of the hundreds of crores spent on advertising today, I dare say, is a waste because the money is being spent either on ideas that are not well researched, or on propositions that are plain wrong or are not well presented. Hence, at first, the marketers should necessarily spend money on research.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting

IIPM Proves Its Mettle Once Again.....

IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies