Posts filed under ‘Communication’

Is your social media presence working for your brand?

social media pic 1

Gone are the days when spends on digital and social media were a miniscule percentage of overall marketing spends and managing them was relegated to young interns who already had a presence on social platforms. While most companies have woken up to the power of the medium, there is also more than a little apprehension as questions abound about utility and returns on this medium.

This post is a summary of learnings from various sources; my experience handling various digital media agencies – overseeing email, search, digital and social media marketing, from observing various types of social media campaigns and their impact, and from studying the latest behavioural research on this topic. Read on…

Don’t buy fans and followers; favour organic growth:

While planning a social media campaign, one of the first suggestions on the table is likely to be a contest with products being handed out for free in order to lure new followers or create a buzz.

The argument for chasing fans and followers during the early days of social media was that the consumers engaged via social media were more likely to buy and recommend the brand. Now, studies have shown that the mere act of endorsing a brand does not affect a consumer’s behaviour or lead to increased purchasing, nor does it spur purchasing by the consumers’ friends.  As marketers experienced this, the argument for chasing fans and followers moved from getting these fans to buy your products to using these followers to spread information on the brand.

But such luring tactics often attract the wrong people who are not strongly attached to the brand. This leads to low engagement with content which defeats the whole purpose of acquiring these fans to spread information. Letting fans and followers grow organically, you are likely to attract those with a positive predisposition towards your brand. And on this foundation, meaningful campaigns can be built going forward.

Have channel specific campaigns and strategy:

For brands, it’s become a norm to be present on multiple social networks. The content is created with focus on one social media network, usually Facebook, and then cross posted (same content across networks) or cross promoted (content modified slightly for other networks). At times, content is cross-linked between social media, e.g., driving people from Twitter to a Facebook campaign. While the reason expressed for this is that the audience on various networks is different and one is maximizing reach, the underlying reason is most often economies.  You save effort, you save time, and ultimately you save money.

Everyone knows that there are big differences between different social networks – predominant content format, posting structure, audience profile and how a user interacts with them. If the differences are so fundamental and so wide, how can one strategy work effectively across?

The big folly is that we put all digital and social as one arm of an integrated media campaign. The result? Marketers and brand managers think of campaigns across digital and social as one campaign rather than thinking about integrated digital campaigns with each network on one arm. It is crucial to pick the right network for a brand rather than jumping on to the next social media bandwagon. Select social networks that fit brand message, type of content, and target audience. Then ensure that the strategy for each channel is in line with the consumer behaviour and interaction that the channel dictates.

Go beyond content marketing, pre-roll ads; collaborate:

Of late, you see a plethora of brands releasing 2-7 minute long videos on YouTube. While most of them in India are released on festive occasions or events, and are about family relationships, it’s not uncommon to see brands talking about issues like self-consciousness, gender stereotypes, sexuality, empowerment etc. Call it storytelling, branded content marketing, brand purpose videos, every agency and marketer wants to create that next “viral video” that wins awards!

The reality is that Consumers often see through these tactics and recognise the intention behind the content that the brands churn out. Very few brands have generated meaningful consumer interest in such “amazingly awesome”, “heart wrenching” videos. Then, in desperation, comes the artificial trending and pre-roll pushing of these videos which are routinely ignored and skipped.  Brands need to go beyond this ‘advertising on digital media’ mentality and take advantage of the many possibilities that digital and social media offer today.

For instance, consider youtube. YouTube has a simple Venn diagram indicating the sweet spot for developing a video content strategy. Since it is tough for a brand to “Create” all the content that fits this sweet spot, they suggest considering the options to “Collaborate” and “Curate”. HBR talks about the rise of crowd culture where today you’ll find a flourishing crowd around almost any topic. Cooking, parenting, health, fashion, films, arts, skin care… you name it and chances are you’ll find entertainers you’ve never heard of, some with  millions of followers. That’s where the leverage of collaboration comes in – content that fits the brand message and target audience can be produced and promoted in partnership with the creator’s channel.

Listen to everything; Measure appropriately:

Social Media Command Center

Geoff Livingston / Flickr – CC BY-SA 2.0

Of late, companies have started creating social “command centers” – rooms with wall-to-wall computer screens and projections, tracking campaigns and brand chatter in real-time across social networks 24×7. These are used to a) create relevant content speedily around a campaign or event, b) receive and respond to consumer feedback and c) identify and mitigate potential PR crises (of late this is becoming the #1 reason for establishing such centers).

While such centres turn big data into beautiful data, more often than not, they fail to deliver on expectations. Those who look at such data closely, berate the inadequacy in data gathering, integration and analysis tools. And those in senior management don’t relate to, and state as meaningless, graphs of retweets, likes, mentions and sentiments. Core to both of these issues, is that the business case (outcome) of social listening is not clearly defined and the investment is justified by activity.

If the primary role of social media is managing consumer feedback, the meaningful measures should be related to traditional consumer feedback mechanisms like call centres (number of calls reduced, speed in resolution etc.). If it is for listening to consumer talk, then measures should be related to traditional research programs (insights generated, product feedback received etc.). These are tricky to measure, but despite the innate difficulties involved, such measurement and attribution is important and possible.

Though social media has been around for more than a decade now, it’s still relatively new and brands are still figuring out a way to navigate and leverage this medium to create impact. In the next post, we’ll delve into an approach to measure the impact and returns on this medium.

    • Ravindra Ramavath
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November 20, 2017 at 11:00 am Leave a comment

Are emailers effective? A review of communication tactics, Part 2

As mentioned in my last post, with an aim to analyse the marketing emailers that I’ve received, I let promotional emails accumulate in my Gmail folders for over three months – from June to August this year. Presented in this post is an analysis of these emailers, an experiment I’m glad to share with the readers of this blog.

Background Notes:

I almost never notice ‘marketing / promotion / lead generation’ emails sent to me. That’s because Gmail, my primary email client for personal emails, detects and filters unwanted emails with an alarming accuracy level – less than 0.1% of email in the average Gmail inbox is spam. And the occasional, unsolicited ones that I do spot in my inbox are duly marked ‘spam’ which ensures that I don’t see more such in future.

As I downloaded the emails accumulated in my spam folder, I noticed that more than 90% of those emails were for Banking and Financial services (BFSI) products. It was a significant volume of emails from one sector, so I removed the small number of emails from other sectors and am just presenting the findings from the 469 emails from the BFSI sector.

Hence, a caveat, this is a biased analysis. The analysis is only of BFSI product emails sent to me specifically, based on how I have been profiled by a) email marketing service providers / databases (ESP), and b) BFSI products/brands that I purchased or interacted with; as well as c) a few ‘opt-out’ choices I made over the course of these 3 months from some of the email databases.

Deliverability insights:

Did you notice that I mentioned that these emails were pulled out from the spam folder? A probable reason for emails from these senders being classified spam is their domain / IP reputation, not to mention the ‘quality’ of their email lists.

The graph below shows the top email sending domains and the number of brands they’ve sent emails for.  For instance, I received 65 emails, on behalf of 15 different brands, from one of these senders, mailpost.in. These domains are pretty much in the business of ‘bulk’ mailing – repeatedly sending emails to the same consumer for various brands.

1 DomainsSendingEmails

Would a brand really want to be associated with such bulk senders?  As marketers, before picking or approving an ESP, some hard questions need to be asked. How was their database built? How good is their segmentation? What data protection systems and processes do they have? What is their spam rate? How do they measure deliverability? What tools do they use for email authentication? What is the domain and IP reputation? Digging deep into these even before an email is designed ensures tremendous campaign success later.

Time based insights:

As I opened these emails to glance at the contents, the quantum of such email kept increasing and this trend continued even after I stopped opening them and unsubscribed to some of these databases. From about 2.6 emails every day in June, they went up 3x to 8.2 emails per day by August. The one thing that ESPs are clearly good at is tracking open rates and ensuring their future mailing tactics maximise chances of meeting their objectives.

2 EmailsByMonth

The next variable I looked at was day of the week. BFSI brands prefer weekdays, with a slight peak in emails sent on Thursdays and Fridays, and a clear drop on Sundays. 

3 EmailsByWeekday

At an hourly level, the trend is clear too; email receiving peaks between 11AM to 1PM. I got 40% of all emails in that slot and this trend was fairly consistent across weekdays and across months. These trends are in-line with some send time learning on email marketing.

4 EmailsByHour

Product category insights:

Among the various sub-segments that comprise BFSI, Life insurance has the maximum share of voice (SOV) on mass media (TV, print and radio). It’s followed by Mutual Funds and Retail banking (thanks to all the new banking licenses), and I expected the same aggressiveness and SOV in digital/email marketing as well. But, more than a third of emails I received were for Credit cards followed by those for Personal loans. The former are being pushed aggressively by traditional banks while the later were being pushed by NBFCs.5 EmailsByProduct

Banks still send 44% of all emails.  But what is really interesting is that if you remove credit cards, both NBFCs and online aggregators/dotcoms are giving tough competition to traditional banks. Online aggregators have started to go beyond regular insurance products and are sending out a fair mix of emails on other financial products.

6 EmailsBySenderType

Messaging insights:

In terms of the actual emails themselves, to see how many different ‘creatives’ are being sent, I analysed the subject lines. I began by assuming that the email content / message is the same if a subject line is the same; many a time the email content was the same even with a changed subject line,  I ignored this scenario.  I noticed that both the quantum of duplicate emails as well as their proportion kept increasing as months went by. While this is a telling commentary on how an email marketing companies’ business model works; what is of greater concern is that brand marketers are opting to re-send the same set of creatives for months together.

7 DuplicateEmailsOverMonth

As mentioned in my earlier blog post, the email subject line has a critical role to play in email marketing. It has to provoke and interest a person enough to make him open and read the email body. And because email open rates are abysmally low, the subject line has an additional burden of delivering the brands’ benefit. The word cloud shown below visualises the words used in the subject lines in these 469 emails that I received over the 3 month period, with the brand and product category names removed. The more prominent the word, the more frequently it is used in the subject line.

8 WordCloudAllBFSI-redone-banks removed-horizontal

Once the brand name and product category is established, brands seem to be mostly communicating promotions – free, no fee, save, cash back, complementary, vouchers / tickets, offer etc. Very few talk about  other important benefits that drive brand image, such as a) service levels – expert, stress free etc., b) process – instant, e-approved, cashless etc., and c) network – large, convenience, etc. The basic selling of almost all products on discounts and rewards is quite telling, it probably indicates one of these – heavy competition in this space, current stage of category evolution and/or undifferentiated benefits.

Coming to the content of the emails, what I received was an overdose of image-based emails. Most email clients suppress images by default;   this not only leads to wrong measurement of ‘open rates’ but also a bad user experience as a consumer doesn’t seeing anything immediately  on opening an email. The other problem with image-based emails is that they leave little scope for personalization basis name or even basis segmentation and profiling of consumers.

Then there is content that seems to follows a standard template, what I call ‘the bullet point’ approach’. These mailers typically have 4-5 undifferentiated features listed, stone-cold, without a mention of the overarching final payoff in terms of what it gives the consumer (functional benefit) or how it makes them feel (emotional benefit). The functional benefit, even if attempted, is just a description of what the service does (e.g. quick financial assistance for all your needs), it does not ladder it up higher to how it improves the customer’s life (So what ? How does this matter to me? How will it make my life better?).

9 EmailContent

In many cases, the heading is another feature or a call to action and neither it nor the image add any value to the subject of the email. The reason why someone opened an email is because they are interested in knowing more about what is promised in the ‘subject’ line. When an email message doesn’t deliver or explain what the subject line promises, the click-through rates plummet.

10 EmailContent-MultipleCTA

Then there were some mailers that made the unpardonable mistake of having multiple call-to-action (CTA) or worse still not having a CTA. While the image itself is clickable, how is the consumer to know what action is required from him / her to get to what is being promised?

11 EmailContent-CTA-Missing

The typical CRM emails wishing customers on various occasions (festival, celebration etc.) fall into this category too. It’s critical to balance value and frequency and avoid over-sending emails.

Analysing the emails from the past few months, I get a sense that marketing teams often completely outsource email marketing to generalist agencies and ESPs, spending very little time and effort  monitoring and reviewing email marketing  strategy and campaigns.  This essentially means most email marketing programs fail to deliver on their objectives, or even if they do, they deliver them sub-optimally. Email marketing is by no means easy and it has many moving parts that the brand has to get right – strategy, technology, creative (design, copywriting) to robust analytics.  Here’s hoping to see a few email campaigns in the near future that are pathbreaking.

  • Ravindra Ramavath

September 18, 2017 at 11:20 am Leave a comment

Are emailers effective ? – A review of communication tactics

I am a regular follower of marketing charts (note: slow to load) and every so often I notice a chart  which  shows that marketers still consider email to be a valuable marketing tool.  For instance, various polls among marketers showed that a) they considered email marketing to be the most effective and least difficult vehicle for lead generation, b) email marketing provided the best ROI of any digital channel, c) 89% have decided to either increase or keep the same spends on email marketing. And if millennials are the segment that you’re targeting, this Adobe survey showed that email is one of the best ways to reach millennials.

On paper, email is still one of the most cost-effective ways to reach consumers, both in terms of total cost as well as cost per contact. Ever wondered what actually happens to all such awareness/promotion/lead generation emails being sent out? How many are noticed by the recipients in the inbox of their email account? More importantly, what proportion of recipients open and read them? What impact do they have on the reputation of the company / brand? What metrics should be used to measure effectiveness?  As a marketer concerned with the effectiveness and ROI of any communication tactic or channel, these are the nature of questions that I’m always trying to answer.

Fin-serv - part 1 - image

As I see it, there are fundamentally 3 critical aspects to getting a lead generation email marketing campaign right: a) ensuring the email lands in the target’s inbox, at the right time, b) Ensuring the email is actually opened and c) ensuring the relevant message is delivered and call to action achieved. A strong understanding of technology, analytics and creative is required to deliver all three. A lack of understanding of any of these aspects results in inefficient spends and belies the claim of cost-effectiveness. The onus of closely monitoring and reviewing the execution of email marketing campaigns lies with marketers as not all digital marketing agencies and email service providers (ESPs) possess the right mix of people with technical, analytical and creative understanding.

The following sections explore each of the three points mentioned above in more detail.

Landing in the inbox, at the right time:

This is one of the most critical aspects to understand, but one that marketers often pay little attention to. The marketing departments at many companies depend on a generalist digital agency that in turn goes to the cheapest database provider and ESP – often a single entity – for generating leads.  Using such providers, buying or renting databases from them is pretty much the worst thing a brand can do.

Firstly, email addresses in such databases are probably obtained by dubious means. Secondly, the authenticity, profiling and segmenting of such databases tends to be of extremely poor quality. To make things worse, these databases are likely to have been milked dry for other brands. All these lead to a low IP reputation of these ESPs, making it easy to identify emails coming from them as spam. Plus, all it takes to train the machine learning spam filters are a few disgruntled recipients who mark the emails as spam. Spam filters work really, really well (99.9% accurate) leading to poor delivery of emails into inboxes.

Once this ‘deliverability’ problem is taken care of, it’s time to move on to the ‘when to deliver’ problem. Send the email on the wrong day and it is likely to remain unopened, or, once opened, be ineffective as the call to action has been rendered meaningless. Send the email at the wrong time and it is likely to be ignored.

To sum up, finding the right email agency is crucial. Email marketing is moving away from being a piecemeal activity to one that is cross-functionally integrated into marketing, sales and customer service. In such a scenario, two critical points – to have a specialised email agency on board which has the right ethics, technology, strategic thinking, analytics and creative capability, and for the marketer to periodically oversee and review the activity.

Ensuring emails are opened:

In our regular work, we’ve seen varying email open rates for some email campaigns on opt-in email lists generated by the brand. Open rates have been as low as 2% in the case of those sent out by a consumer goods firm, to 8% for an apparel e-commerce firm, and as high as 16% for an aspirational youth apparel brand. One reason for such huge variance and underperformance – at as basic a level as ‘open’ – of email campaigns is the time problem described in the earlier section. But a lot of it is due to a messaging problem too, as described in the next section.

The email subject line has a critical role to play in email marketing. It has to grab attention, provoke, interest and encourage further opening and reading of the email body. And because such email open rates are abysmally low, the subject lines have to lead to and sometimes even deliver the brands’ benefit. In short, between the ‘from’ and the ‘subject’ the intended recipient should get a crystal clear idea about the brand and the benefit. No wonder good email marketers are most interested in optimizing their subject lines for higher open rates.

Messaging and Action:

This brings us to the next piece on content of the email – the creatives.  I see this as one problematic area where there is a vast scope for improvement.

Some of the best innovations are happening in this space in terms of email interactivity. While some like embedding gifs are plain rookie, others like collapsible menus and shopping carts are really interesting. It’s time to use some of these innovations to improve campaign objective metrics.

Yet most awareness/promotion/lead generation emails that I’ve noticed over the past three months consisted entirely of images with little text. Going forward, a majority of emails are going to be opened on mobiles. Many such image-only emails are going to be resized by the mobile email apps making them difficult to read. If emails aren’t being optimised for or made responsive to mobile, chances are they aren’t getting the desired results.

Another huge problem is the email content itself. Senders are increasingly getting into ‘create once and send multiple times’ mode.  The same set of email creatives are sent multiple times with a different baiting subject line. While such tactics might help optimise ‘open rates’, they cause a deterioration in all other call-to-action parameters. Ensuring that the content is relevant and consistent with the brand, and that the subject line of the email matches what is actually in the content body is critical. And this is where regular tracking and reviewing all the other critical email marketing metrics – click-through rate, conversion rate, list grow rate, sharing rate etc., – is critical.

In order to have shareable data to illustrate the points mentioned, I decided to use the promotional mails that I received as examples. For the same, I let promotional emails accumulate in my Gmail folders for over 3 months with an aim to analyse and learn from them. Now that this post has established some fundamental principles, my next post will present a detailed analysis of those emails.

 

  • Ravindra Ramavath

 

September 14, 2017 at 8:35 am Leave a comment

Digital Marketing for the ‘Old World’ Marketer

Digital marketing is where the action is at, and if you’re a skeptic, and still struggling to catch up with CTR, SMM, Open rates, and all the rest; the world seems to be busy telling you that you’re lost.  Some thoughts to put digital marketing in perspective, and help keep you in the game:

 

Digital marketing is a misnomer

It’s many wonderful things, but not marketing. Marketing is the 4P’s, 7P’s, or creation of the value chain from producer to consumer (of product/service ), or whichever definition of marketing floats your boat.  ‘Digital marketing’ on the other hand is a tool of communication and engagement.  It’s a “How” (one of many) to communicate “What” you want to say to your target audience.  That actually sounds like…

 

Advertising

“A rose by any other name…” The great bard tells us that a thing remains what it is, irrespective of how one may choose to label it. If it walks like a duck, quacks like a duck, it is a…  And all of you know what makes great advertising – insight into your consumer’s behavior and attitudes, clarity of your objective, how the consumer should feel, a bit of serendipity, and so on.  Digital marketing is exactly the same.  If you’re selling airline tickets to global citizens, smart alec tweets about who won a FIFA World Cup game which are viewed by millions, but annoy a few thousand (potential) customers is poor advertising – as KLM quickly realized.  No matter how much your digital agency will jabber on about engagement levels, viral videos, ‘likes’, or “how the digital audience is different”; the essence of what makes great advertising will remain.

 

“Lies, damned lies and statistics”

The inherent nature of the digital world means everything is made of numbers (queue the scene from “The Matrix” when Neo discovers his true ‘power’). And so the new age digital marketer will bury you in reams of numbers – CPV, CTR, CPA, session time, funnel %, and on and on; and build them into beautiful decks with wonderful graphs.  Don’t let them stop there, and ask what do the numbers mean – how are consumers reacting; understand, why are they doing that?  Be careful that the data is consistent, and not cherry picked, lest Mr. Disraeli rise from the grave and lecture you.  And always remember, don’t derive qualitative answers from quantitative data or vice-versa

 

Watch your spend

You don’t spend without thought and analysis on television or print or radio, why is digital marketing any different?

 

Don’t be afraid

One huge advantage ( or nightmare, depending on your POV ) of the digital world is how fast things can be changed, and how quickly the past can be wiped clean ( at an ordinary, superficial level ) – so use that and experiment !

  • Sujay Naik

( Note : This post was originally published by Sujay Naik on linkedin and is being reproduced here with his permission.)

July 30, 2015 at 7:33 am 3 comments

From No-No to Yes-Yes

 

NanoTwist

I’m generally indifferent to cars and know them only as a system with four wheels, steering and seating that get me from point A to point B with minimum effort on my part; yet I’m eagerly awaiting the launch of the Tata Nano GenX. The journey of the Nano has such interesting twists and turns that it rivals a Bollywood potboiler, and as a student of marketing, I really want to see how Team Nano manages the tough task of making consumers warm up to the Nano Gen X. ( I’m hoping it succeeds and wishing the Nano Best of Luck, by the way). Meanwhile, in the run-up to the launch (until I have fodder for another post, that is), here’s the story of the Nano thus far :

Phase I: The people’s car The 1 lakh car

Launched in 2009, the Tata Nano was supposed to be ‘a people’s car’, the savior of the Indian middle class family which relied on a scooter or bike to transport all four members, offering them a safer and more comfortable alternative. To ensure affordability, the initial price was brought down to as low as Rs. 1 lakh per car through frugal innovation. Watch this ad to get a taste of what this brand was supposed to stand for and the role it was expected to play.

However, most of the hype around the car was focused on its cheap price and it became known as ‘The 1 lakh car’. For the middle class, both urban and rural, owning a car is a matter of pride and self-esteem. So, rather than gladly discovering that this fantastic upgrade from a two-wheeler actually had a reasonable price, Nano’s portrayed image put the product in the situation of being viewed as a compromise , not an upgrade.  “Ek prestige view se thodi down hai,” as one respondent expressed it during a transportation related research a few years ago, while another respondent termed it ‘the No-no’. Dangers of letting a low price be the defining feature of your offering!

Mr. Ratan Tata gives a crisp explanation in this article , “I always felt the Nano should have been marketed towards the owner of a two-wheeler because it was conceived to give people who rode on two-wheeler an all-weather, safe form of transportation, not (the) cheapest,” Tata said. “It became termed as the cheapest car by the public, and [also] I’m sorry to say, by the company when it was being marketed,” he added.

Another problem that the Nano faced was that of high expectations from those who did see it as an end to their transportation woes. During the same transportation related research mentioned earlier, we also found that the same Indian family that would uncomplainingly seat four people on a scooter or bike and balance their shopping bags too, somehow morphed into a demanding set that wanted adequate boot space in their car to keep luggage – just in case they had to drop a relative to the station.

The performance problems with the initial batch of cars did nothing to boost Nano’s image either. Soon after the cars hit the road came reports of some of them catching fire, which was seen as an indicator of low quality and a lack of reliability. While only a few such issues were reported, we’ve found that some people still mention these spontaneously when the Nano is mentioned.

Phase II:

Here’s where the change begins and the marketing team begins explicitly targeting a different TG –  young professionals in urban centers ; you can click on the links here  , here and here to view the ads and see for yourself  the distinct change in tone and style of ads from the earlier people’s car ads. By now, the no-frills car also had some add-ons such as the ‘best – in –class A.C.’ mentioned in the print ad shown below.

nano pic 3

 

Phase III :  Launch of Nano Twist – from ‘cheap car’ to ‘smart city car’

This is when an attempt was made to radically alter the Nano’s positioning in order to make it appeal to the new TG of urban professionals. The ‘you’re awesome’ campaign targeted  young urban folk and tried to showcase to them the new stylish Nano – new colours, better interiors, a car that could seat a couple of friends , a fun n’ smart car to hang out with. Did it work? I recall discussing this campaign and its effectiveness with a young colleague early last year and she felt that it was having some impact, two of her friends had noticed the ad and actually purchased the Nano Twist. Multiple news reports also mention that the customer profile for the Nano had indeed changed over the years, a heartening sign – the proportion of Nano buyers in the 24 -34 years age bracket had expanded to 40 percent, from the earlier 15 to 18 per cent.  Another interesting change happening in the Nano script is the growing base of women. Today, they account for 28 per cent of its customers, a substantial jump from 12 per cent in the earlier ‘people’s car’ phase.

That’s only part of the story though; take a look at the sales data for the rest – as per this article, in the April – December period of ’14-’15, Nano only sold 13,333 units, down 18.64% from the same period of ’13-’14.  

What could have limited the impact of such a high decibel campaign? NanoTwistWell, one reason could simply be that the impact of the initial launch advertising and PR campaign in ’08-’09 was so strong that the ‘cheap car’ story could only be over-written over the long haul , and it’s not a task that one ad alone could shoulder. Another could be that while the ‘You’re Awesome’ campaign did have a smarter , more stylish feel to it, there was no over-arching product story communicated about how the Twist was better than the earlier version of the Nano, neither about how it was better suited to city travel than other cars. While some shots in the ad did imply easy maneuverability, it was not explicit enough, and got overshadowed by the messaging on style and aesthetics ; the ‘smart city car’ benefits were explicitly mentioned only in print ads. When a repositioning as drastic as this one is being attempted, consumers probably need to hear that the car has improved significantly too.    

Phase IV: Launch of the Nano Gen Xnano pic 2

And thus to the eagerly awaited launch of the Tata Nano Gen X later this month! Now clearly aiming for the ‘smart city car’ tag, the Gen X has a host of improved features, see details here here and here

But has the 2013 campaign succeeded in erasing memories of the 1 lakh car launched in 2009? Will the Nano get to make a fresh start? Only time will tell…  

 

  • Zenobia Driver

May 14, 2015 at 10:57 am 8 comments

Why Snapdeal sponsors Big Boss, and Flipkart / Pepperfry / Fabfurnish / Jabong / Amazon etc. advertise on mass media

The sudden surge in e-commerce firms advertising on mass media has surely not gone unnoticed by readers of this blog. While Flipkart has been advertising on TV for a few years now (read our posts on their ads here  and here) , in the last few weeks every e-commerce firm (with deep pockets and / or investors) has jumped on the bandwagon. Switch on TV and ads for Pepperfry / Fabfurnish / Jabong / Amazon etc. appear as often as those for soaps, soft drinks and biscuits ; drive on any major artery in Mumbai and alongside posters of political parties that contested the just concluded state elections you’ll find those for Pepperfry.com ; print media has been used extensively too with some players even splashing their ad on the front page.

Of course, with the Dussehra – Diwali festival season approaching, one would expect any retail venture to step up promotions and advertising, we see almost all brands and supermarkets doing so too. But what drives the young e-commerce firms to advertise on mass media ? Surely they’re masters of advertising on the internet and on social media, which are not only cheaper media, but allow the brand to fine-tune targeting their audience in a manner that mass media simply cannot match. So why spend big bucks on a (relatively) scatter-shot approach when you have a finely tuned laser at your disposal ?

Ah, take a look at the results of the same. As per this news report, Snapdeal’s sponsorship of the popular teleserial ‘Big Boss’ resulted in them recording highest ever sales. This article quotes Vikram Chopra, CEO and co-founder of FabFurnish, “During and after a few months of the television campaign, our traffic increased two and half times.” And I’m not even getting into describing Flipkart’s Big Billion Day sale, as the furore afterwards has ensured that everyone knows all about the record number of prospective customers that logged in on the day. Would advertising on digital and social media alone give e-commerce companies the same outcome ?

One simple fact can help answer this. Amongst the Indians who are active online, a low proportion actually shop online; we gave the data related to this in a post a few weeks ago. For instance, in Russia and China, almost half of the population that are active online also shop online ; whereas in India this proportion is a little less than 10%.

pic - infographic and e-commerce firms' logos

There are various reasons for this. Firstly, the number bandied around as the number of Indians that are active online includes even those who access the internet infrequently. As this post shows , in the top 35 cities which account for 42% of Active net users, only 54% access the internet daily. The All-India figure for percentage of active internet users who access the net daily is much lower.

Now, layer this with the fact that a significant proportion of sales for e-commerce firms are from tier 2 cities, and you see the importance of getting their residents transacting online. The best media for targeting these markets is still TV. As this article mentions Snapdeal CEO Kunal Bahl saying during a conference, “All e-commerce companies want to penetrate the tier-II market and Big Boss is a great medium for that.”

Hence, the necessity for e-commerce firms to advertise on mass media and attract more people onto online media, simply advertising on digital media just won’t suffice as not enough people are active online.

  • Zenobia Driver

October 20, 2014 at 6:36 am 3 comments

Segmentation in the apparel e-tailing space

Segmentation in apparel e-commerce brands - one comparative pic A friend who recently purchased some kurtas online made a chance remark about how only certain sites stocked the kind of kurtas that she was looking for and this set me looking through the catalogs of various e-commerce sites.

As the apparel e-tailing space in India has grown and evolved, various brands are consciously segmenting their audience (basis demographic variables, occasion of use etc.) and targeting specific segments ; this is evident from the conversations on their facebook pages, their ads, and of course, the offerings in their online catalogues. Even within a particular type of apparel – for instance, women’s ethnic wear, the styles, colours and prints of salwar-kameez sets or kurtis varies, as do the ages and the demeanour of the models in the pics.

 Zohraa - pic Segmentation in apparel e-commerce brands For instance, consider the salwar-kameez collection of Utsav Fashion and Zohraa. In the case of Utsav Fashions, which started off as an offline store and switched to the online model only when they realised that a significant percentage of their business was coming from NRIs abroad, it is not surprising that the focus is on occasion wear. On the other hand, Zohraa, a relatively young firm whose site started operations during the second half of 2012, recognised the opportunity to differentiate itself in a crowded online market-place and consciously decided to focus on occasion – wear, or as their website expresses it, ‘….. our collection of elegant and opulent occasion wear…. that reflects the sensibilities of the royal wardrobes of the past, while ensuring that the cut and the drape are modern, comfortable and practical for the woman of today.’   

Then consider Jabong, which started operations in January 2012 and is targeting a younger, more westernised demographic. Their youthful and light-hearted – even sometimes irreverent – attitude is displayed in the ‘fashion nikla mann fisla’ series of ads (links to the ads here, here and here). To match this, even the collection of women’s ethnic wear at Jabong is far younger, more casual and breezy, witness the difference between this set of pics and the earlier ones.  

jabong piclime road 

             

 

 

 

 

 

 

On the other hand, Suchi Mukherjee’s Lime Road, which also started in 2012 seems to be targeting a different demographic and a different usage occasion. Lime Road’s stated identity is as a social commerce site targeted at the modern woman. It seems to carry colours, prints and styles that are just perfect for the young working woman, and sits neatly in the space between Jabong’s breezy casual style and the occasion wear offered by Zohraa and Utsav Fashion.  

If you’ve noticed this in other sectors of the online apparel market, do write us a comment. Meanwhile, we’re looking at other types of apparel and accessories too, and will post on this topic again if something catches our attention.

  • Zenobia

August 28, 2014 at 11:05 am 6 comments

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