Thursday, January 26, 2012

THE ROCK STARS

Oprah’s visit to India has created quiet a stir with everybody wanting to meet her, and why not? She is, after all, the most powerful woman in America. What’s commendable about her is that she was not born this way; but worked her way up the ladder, and the success and fame she has got is very well deserved. She is a true ‘rock star’. She was poor and she had no parents to pamper her and take care of her (she was born to two teenagers who ended their relationship once she was born). She however had one quality – she learned to read before the age of three. That was the only possession she had and she used it to develop herself and her career. She was a great student and was able to impress everybody with her knowledge (because she read more than others). Today, any book that Oprah picks up is guaranteed to become an international best-seller. A strong will and a steely determination are what made her a success.

Another child born to unwed parents not just rocked his career but also the world. Steve Jobs had the passion to follow his dreams and face all the ups and downs in his career without ever giving up. He was the biggest ‘rock star’ of business.

NEVER SAY DIE

The ‘V’ sign made using the index finger and the middle finger used to be considered a rude English hand sign in the Middle Ages. The French would cut off the middle and index fingers of any English bowman so that they could never shoot again. The English would taunt the French by raising their fingers to say, “I can still shoot you…” However, this ‘V’ sign changed its complete meaning when Winston Churchill raised his fingers to depict ‘victory’. He was the man who was the ‘rock star’ of World War II, for he never gave up and told his people to do the same. He prepared the nation for battle with the Nazi army and after five years of fighting and a near defeat, victory was finally theirs. It was this attitude that brought them success and ‘victory’. He was one of the finest leaders of Britain and his leadership capabilities were best displayed during the Second World War. Consider the fact that this was the same boy who stuttered as a child, did poorly in school and was rejected by both Oxford and Cambridge. Churchill never gave up till he succeeded.

He also did not do well in school, so he decided to grow Christmas trees and raise budgerigars. Both his projects failed. However, by the age of 16, he was able to publish a magazine and start a small mail-order business. Today his group ‘Virgin’ is a conglomerate of 200 companies present in 30 countries. Not just this world, Richard Branson soon plans to expand his business beyond the planet. He plans to take ordinary people into space on Virgin Galactic. The man thinks, looks and works like a rock star.

He grew up in an orphanage as his widowed mother could not support him. He worked in a factory that made moulds for auto parts and frames of eyeglasses. At 23, he opened his own eyeglass frame shop and today, his company ‘Luxottica’ is the world’s largest maker of eyeglasses, glares, et al. Today, Leonardo Del Vecchio is valued at $10 billion!

It’s been noted that two-thirds of the world’s billionaires made their fortunes by starting from zero. It was not inheritance but persistence that made them succeed.

Easier said than done, but this is the true spirit of a ‘rock star’. They never give up, they never say die.

NEVER UNDERESTIMATE YOURSELF

Just a mention of his name brings a smile to anyone’s face; yet this man lived a childhood that gave him very few reasons to smile. Jim Carrey, the rock star comedian of Hollywood, had to work long hours while still in school. He and his family used to live in a camper van. But Jim knew that he had the ability to make people laugh. He decided to pursue his passion and at 16; he dropped out of school and moved to LA. It was a big risk, but he knew that he had something different to offer. Most importantly, he knew that this was what he wanted to do most; so he put everything at stake to follow his dream. If you are focused, you are bound to succeed. He landed himself in a part in a sitcom called ‘The Duck Factory’ and soon, his career was rocking!

As Steve Jobs had once said, “Life is too short. Don’t live with the result of other peoples thinking.”

She was divorced & had a small child to take care of; yet she decided to follow her heart and do what she knew she was best at – that was to write. So she did not pick up a regular job and instead wrote a book based on an idea that came to her on a train ride. Her book summary was rejected by many publishing houses till one liked it. J. K. Rowling took a huge gamble, for it is very difficult to be noticed in the publishing world; but she believed in herself. Today, she is the first author to become a billionaire and her book sales rocked the publishing world and set new benchmarks.

The one business Lakshmi Niwas Mittal understood best was his family business of steel-making. So he ventured out to do what he knew he was best at and did not hesitate to buy a run-down plant in Indonesia and start Mittal Steel. Today, ArcelorMittal is the largest steel company in the world!

He always had a knack for business. As a young boy, he found an easy way to make money. He would buy matches, fish, pens, Christmas decorations, et al in bulk and sell them for a profit to his neighbors. He knew he was best at business; so when he got good grades in school, he asked his father for a loan and started his mail-order business. He knew the importance of keeping prices low if one wanted to make it big. This business acumen has made IKEA the biggest furniture company in the world today and its founder Ingvar Kampard is one of the world’s richest.

Think deep and find out what it is you can be the best at in the whole world, and then devote all your energies to that; without bothering about initial failures, without bothering about other’s opinions. Stay focused and success is bound to happen. All stars will tell you this.

NEVER LET MONEY MOTIVATE YOU

“I was worth over $1000,000 when I was 23, and over $10,000,000 when I was 24, and over $100,000,000 when I was 25, and it wasn’t that important because I never did it for the money.” These were the words of Steve Jobs, who showed the world how to live life on your own terms. His stepfather chased him out of his house when he was a child. He became a salesman but lost his job and his wife left him. He had only one mission, and that was to be able to keep his son happy. He slept in the subway station bathrooms, but he did all that he could to keep his son happy. A job in Bear Stearns, days and nights of hard work and things finally did change for Chris Gardner, when he finally could manage to open his own brokerage firm Gardner Rich & Co. His story became the theme for the Will Smith starrer movie “In Pursuit of Happyness”. Life is actually not very different from the movie title. Pursue happiness and not money, and it (money) will eventually come to you on its own.

Traditionally, rock stars were defined as people who were part of a rock band. But today, rock stars have come to be known as people who don’t follow rules. They are not happy being good, but go out of their way to be extraordinarily good. There is something totally unique about them. Today, in business, those are the ‘miracle workers’ who are called rock stars. Some call them ‘rock stars’ because they are the best of the best and super experts in their field. For some, ‘rock stars’ are ‘brands’ of success. They are larger than life. For still others, they are those who believed in themselves and went ahead and did exactly what they believed in.

Whatever your definition of a rock star, remember that anyone can become one, and in whichever field he chooses. If you have the faith, if you believe in yourself and if you are ready to put everything at stake to achieve your goal; then you too could be a rock star!

Thursday, January 12, 2012

A NEW YEAR, A NEW START!

Another year, another chance to accomplish all that we could not in the last year, another hope, another new beginning! Yes, every new year brings about a sense of freshness with it and lots of hope and high spirits. It’s the time to think afresh, plan new things, change your outlook and approach your problems with a more positive mindset.

Every year promises something new and every year witnesses a new change. This year too, we as marketers should be ready to face new challenges and plan new strategies. The rules of doing business are going to change and if we want to stay ahead, we better be prepared.

THE VIRTUAL WORLD WILL OVERTAKE THE REAL WORLD

The traditional way of marketing has changed. Marketers will focus more on the new media and the traditional will take a back seat. This change is for good and will intensify even more as marketers discover more and more innovative ways to reach out to the consumer online.

Last year (in June, 2011) the marketing genius Nike premiered its new ad campaign titled “The Chosen” not on TV, but on Facebook. The campaign was used to launch a video contest, which asked people to submit their videos of extreme action sports (like snowboarding, surfing, skateboarding et al) and create the maximum buzz around their entries. The finalists were then judged by a group of professionals within Nike and the winner was selected; the winner was titled the ‘chosen one’, for he got the chance to live like a Nike Pro athlete for a year. Apart from the very interesting and engaging campaign, the point to be noted is that Nike decided to launch its campaign on Facebook nearly three days before it featured the same on TV during the NBA finals.

Not just shoe brands, even cars are using the social platform to debut their goods. Last year, Ford unveiled its new model – the Ford Explorer – not in an auto show, something that it has been doing consistently for the past 50 years, but on Facebook. It even randomly selected a ‘fan’ to give away a free Explorer! If you consider the fact that Ford has been doing relatively well as compared to its competitors, it seems like the choice of spending twice as much as its competitors on digital media is not a bad choice at all.

This month (January 14), Ikea is hosting a “Bring Your Own Friends” (BYOF) event in its stores in USA. Every time you ‘Like’ the Ikea page, the company makes a donation to the non-profit organization ‘Save the Children’. That’s not all; once you like the page, you get to see the various freebies and discounts that the retailer is offering in its various stores on January 14. You are then asked to invite your friends to the event happening in the stores on the day. For every invite you send, you become eligible for various contests and have a chance to win a free ‘shopping spree’. To add to this, the company pledges to donate $1 to ‘Save the Children’, whether your friend/s turn up for the event or not. Yes, earlier too, Facebook has been used for social causes by companies, but this one goes a step further. Ikea is hoping to increase ‘in store foot traffic’ using Facebook. This only goes on to prove that the coming year will see marketers using the ‘social platform’ more aggressively. If your brand has a page on Facebook, it’s time you made sure that it becomes more interactive and engaging, for that’s going to be the key to success in the future. Or else, God help you… well, literally. The most engaging and interactive pages on Facebook have been those dedicated to religion, with ‘Jesus Daily’ leading the list. At more than 4 million interactions weekly, the page leaves all other pages way behind. This just proves that if you have content that is engaging, you have takers too (after all, there are 800 million people on Facebook and each could be your potential consumer). God could help you get some good ideas for this one for sure!

One of the key factors to keep in mind would be ‘online engagement’ between customers and the brand. Apart from the number of followers, it will also be important to keep your followers engaged this time. When your consumers are being bombarded with so many messages, it’s critical to focus on loyalty and make your brand’s ‘voice’ the loudest and the most unique. One way of doing it online is to keep interacting with them. The cosmetic company ‘Benefit’ did just that. With no marketing on TV or in the print media, Benefit used only the ‘virtual platform’ for all its marketing endeavors. Using fun and quirky online content and giving away freebies and having beauty sessions online, the company built an awareness around its products and kept its fans engaged with the brand. It asked its fans to review its products on its Facebook page and even rewarded its most active reviewers. These ‘reviewers’, in turn, told their other Facebook friends about this brand; and soon, Benefit became the most talked about brand in the virtual space. It’s akin to generating ‘word of mouth’; just that this time, it’s happening online, for that is where most of your consumers will be in the future. All the rules of marketing will remain the same; however, the one who is able to adapt these rules to the ‘virtual world’ will be able to stay ahead of the competition.

It’s going to be an era of the ‘virtual’. Be it brand building or increasing market share, everybody is thinking ‘virtual’. Starbucks launched a ‘mobile payment system’, which turned the smart phones of consumers into wallets. Every time a customer ordered from Starbucks, his/her account was automatically credited; and discounts, if any, were applied. Starbucks claims to have 3.6 million customers who have joined this program, very aptly named ‘My Starbucks Rewards Programme’. This will be a year when ‘virtual innovations’ will help companies reap rich dividends.

THE CONSUMER WILL OVERTAKE MARKETERS

On the flip side, the consumer of tomorrow will be very difficult to impress. He has seen it all and is armed with the technology and the know-how for avoiding your advertisements and marketing messages. You need to be totally different and very creative to actually get his attention.

One strategy that most marketers have been seen adopting is ‘shocking’ the consumer. Most of the times, it has worked. Remember the recent ‘Unhate’ campaign of Benetton, which featured some of the world’s top leaders who were not the closest of friends kissing each other on the lips? The campaign featured photos of Barack Obama kissing the Venezuelan President Hugo Chavez, France’s Nicolas Sarkozy kissing Germany’s Angela Merkel and the Pope kissing an Egyptian man. The latter did not take too kindly to it and the Vatican has vowed to take legal action against Benetton this year. But from the marketer’s point of view, the campaign worked as people remembered it, and reacted.

World Wildlife Fund (WWF) had released an ad that showed dozens of planes bearing down on New York with a tag line that read “The Tsunami Killed 100 Times More People Than 9/11”. The copy of the ad continued to state “The planet is brutally powerful. Respect it. Preserve it.” The advertisement, which was created by Brazilian design firm DDB Brasil, was globally condemned by all and had to be hastily withdrawn. Considering the fact that this advertisement appeared just once in a small local paper in Sao Paulo, it was pretty effective, for it had the power to generate a global buzz.

Consumers of tomorrow will appreciate brands that push the boundaries. Diesel did it with its “Be Stupid” campaign, which was loved by the youth everywhere. Whether the ‘shock tactics’ will work or not is debatable. However, one thing is for certain – you need to think really different. You need to be hard hitting to get noticed and be remembered. Only the best will get a reaction from the consumers, and the rest would be conveniently ignored.

The consumer of tomorrow will be impressed by the truly responsible marketer. One who genuinely takes care of its customers and the environment will have more loyal consumers. Brands like Nike and Garnier (French beauty brand) are recycling their products and the consumers are loving them for it. Nike has already recycled 25 million pairs of worn out shoes. Garnier recycles its packaging and uses it to make playground equipment. The consumer tomorrow will like you and remain loyal if, along with a good product, you show him a good recycling plan.

Be responsible and be honest if you want to impress the consumer of tomorrow. If you make a mistake, accept it. Last month, Tata Motors called back over a lakh Nano owners for an upgrade to change their starter motors free of cost. As instances of the car catching fire increased, the company took this action. Toyota, too, did the same when it called back all Etios sedans manufactured before October 8, 2011 to check their filler hose and replace them if found defective. Again, of course, it was done free of cost. More than service, it’s an intelligent strategy to build goodwill and reduce the damages done to the brand’s image.

The coming year is going to be filled with new challenges and new ways of doing business. This time, the old ways will not work. Only the one who is daringly innovative and supremely aggressive will survive.

It’s time to give your brand and your marketing plans a face-lift. It’s time to do new things this new year and discover a new you!

Thursday, December 15, 2011

WHY THIS KOLAVERI DI

“Why this murderous rage, girl?” has become the rage of the nation. It’s the ultimate song for the youth and almost everybody below 20 has made it their anthem. Come to think of it, the lyrics are ridiculously funny, the tune is very simple and yet this ‘soup song’ (meaning, a heartbreak song) just gets on you. It’s so easy to remember and so hummable that you cant stop singing after hearing it! But most importantly, it’s a song that every music company would want in their kitty today, it’s a viral campaign that every marketer dreams of making, it has such crazy levels of popularity that would be a dream for any celebrity and, it has reached an iconic status that every brand would die for. It is an excellent example of how to establish a name, an idea, in today’s crowded market place, filled with consumers who understand all marketing gimmicks; who hate being marketed to and who are a most aware and a sceptic lot.

WHY KOLAVERI?

Why has ‘Kolaveri’ become so popular? It’s the simplicity of the message and the magic of the internet that have made it so popular. Gone are the days when one had to wait for the mainstream media to pick up your story and make it popular by writing about it in their newspapers and magazines or showing it on TV. Today, thanks to the internet, you can go directly to the consumer and be heard. If your message is interesting, it will spread like, well, a viral ! This is exactly what happened to the ‘Kolaveri’ video when it was posted online a few weeks ago. Shot inside the recording studio, the rough version of the song made it to the internet through the backdoor, making it an instant hit and forcing Sony Music to release the song much earlier than planned. Its foot tapping beats made it irresistible to anyone who heard it, and today, it has got more than 22 million hits on YouTube. In fact, so much is the craze for this song that anything associated with it is becoming a hit too. Sonu Nigam’s son has sung a ‘milk version’ of the soup song and that, too, is set to become a rage on the internet. A good and interesting idea spreads like wildfire. You must know what the audience wants and give it to them, as John St., a Toronto based ad firm did. To market its services, it circulated a viral based on a satirical idea of how ‘catvertising’, that is videos with cats in them, would be the most watched videos on the internet by 2015! Tongue in cheek, the advertising agency explains how it has now opened the world’s first ‘cat video’ division to stay on top of competition, for everyone likes to see videos of cats, and cats are good for business. Considering the fact that everything in the world today is just a ‘mouse-click’ away, the ‘cat videos’ are bound to be a hit. Not surprising, then, that the ‘catvertising’ viral has got more than a million hits already. What is it that makes these videos become such a craze? From the ‘Kolaveri’ viral in India to the ‘catvertising’ one in Canada, what is it that makes them so popular? They have the ability to connect with the viewers instantly. They have a simple message told quickly and in an interesting manner. Most importantly they are fun!

WORD-OF-MOUSE

The web can make you famous instantly, and it can make your brand the most talked about. After all, the most powerful tool of marketing is word-of-mouth. Nowadays, of course, it’s the word-of-mouse with the web gaining importance. It is a tool that is being used by marketers across the globe. You could be selling any product; if you have a great viral also in place, it will help your brand in becoming more popular and talked about.

The most popular viral advertising campaign of 2011 has been that of Volkswagen Passat featuring an adorable kid in a Darth Vader mask, trying to use his ‘Force’ to move and control things right from his dog to his toy and even his sandwich. Much to his disappointment, nothing seems to work till his Dad comes home in the Passat. He tries his ‘powers’ on the car and voilĂ , it starts! The kid is elated and totally overjoyed with the fact that the ‘force’ finally worked, not realising that his father had secretly turned the car on with his remote. What an endearing way of highlighting the new feature of the car that it could be started with a remote. It is so lovable and so watchable, which is why it has been viewed more than 62 million times on YouTube.

To get people interested in its new range of shoes, Nike made Kobe Bryant jump over a whole lot of crazy things like an Aston Martin, a pool of snakes, et al. The videos and the feats shown were nearly impossible to believe and generated a lot of comments online. Whatever the comments, Nike had managed to draw the people’s attention, which is the basic purpose of all marketing campaigns.

When it comes to drawing attention, there are two viral campaigns that literally changed the world of online marketing. The first one was the viral released for the movie ‘The Blair Witch’. The world was new to the internet and its new users thought that they had ‘chanced’ upon a video footage of some vanished teenagers showing supernatural events. The word spread like wildfire and soon mainstream media too was carrying this story and talking about it. It’s only later when people realised that this was actually a campaign for a movie. The viral had built so much excitement around the movie, making it one of the most profitable movies of all times. The second most remarkable viral campaign has been that of Barack Obama. One of the first to realise the importance of the internet and the social networking sites, he used it to campaign extensively and actually go on to become the President of USA.

A good viral can grant you popularity but if the product is not good, it cannot help much. To give a boost to its sagging sales, Fiat, too, launched a viral campaign featuring Jennifer Lopez. The star was big, the script was great and the views were huge. With more than 27 million views, this viral is one of the most popular virals of 2011; yet it did nothing for the sales of the car, for it was more about Ms. Lopez and less about Fiat. As a result, everyone conveniently forgot about the car as they ogled at Lopez. The sales did not turn out to be even half as exciting as the viral.

A great marketing campaign has to be backed with an equally great product to be able to fight competitors, or else all the extra attention that you get from the great marketing campaign could actually prove fatal for you and your brand. In today’s day and age, it is extremely easy to film a video and it costs nothing to upload it on YouTube. The tough part is making it work for you.

So while the internet is filled with opportunities, it is a medium that has to be handled cautiously too. While a great viral campaign can do wonders for your bottom lines, a wrong one could conversely generate immense negative publicity for your brand. It is, nevertheless, a place where it’s not the size of your budget but your creativity that can help you beat even the biggest of competitors. A man was looking for a job and wanted to get the attention of some of the best marketing companies. Instead of working on a great CV, he worked on an e-book and called it ‘Marketing Apple’. The free ebook got some of the top bloggers talking about him and soon, he was a popular name; making more money an hour than he could have dreamt of. When Universal Studios wanted to launch the new Harry Potter area in its theme park, it did not work on making an advertisement; instead, it worked on identifying the biggest Harry Potter fan sites on the internet. The owners of these sites (just seven of them) were told that they had been especially selected to break the news to the Harry Potter fans, for the fans should be the first to know and they should not see it in an advertisement. The strategy worked like magic and within days, the new addition to Universal Studios was a mega hit. The best part is that the company hardly spent any money in promoting it.

Great brands have always been built on simple ideas. Great brands under-promise and over-deliver; much like the Kolaveri song, which is so down to earth and yet, it’s pure entertainment.

So as you sit and plan out your viral marketing campaign, remember that it needn’t be very professional, it needn’t be long; but what it must be is simple, endearing, give a clear message, and soon you too could be singing ‘Kolaveri’ on your way to the bank, and not asking your boss, “Why this Kolaveri, Sir?”.

Thursday, December 1, 2011

A TRUE HERO KEEPS HIS PROMISE!

Apple is a unique company for it’s loved by many and envied too by an equal number of people, especially its competitors. First, every mobile phone company tried to copy the iPhone; and now, taking subtle shots at the iPhone is a gimmick being used by all. However, in November 2011, Apple’s most aggressive competitor Samsung went a step further as it blatantly compared its Galaxy S II model with the iPhone. The advertisements poked fun at the iPhone buyers who were shown as people ready to stand in a queue for days to get their hands on the latest iPhone, while a better phone (meaning the Galaxy) was already there with the smarter ones. The ad mocked the iPhone users for buying the iPhone4S when in fact there was no visible difference between iPhone4 and 4S. Moreover it did not have a great battery life and its screen was not as wide as that of the Galaxy. Whether the Galaxy is better than the iPhone is secondary, the debate is, “Is this kind of advertising going to work for Samsung?” It has managed to get everybody’s attention with its provocative ads; but would this help it sustain in the market place?


Talking of ‘provocative’ advertisements Unilever found itself in a tight spot when its internet campaign for Lynx deodorants was banned by Advertising Standards Authority (US) as it was considered degrading to women. To prevent further damage, on November 25, 2011, Unilever immediately posted a “Sorry from Lynx” video on YouTube, which featured the same model (this time, less provocatively dressed) returning all the props she had used in the ad and saying sorry to the viewers. Sometimes brands lose focus and do things, which appear to give quick results but can actually prove fatal for the brand in the long run. It was named one of America’s hottest brands in 2010. After spending close to $23 million in advertising (in 2009) on its ‘Easy- Tone’ shoes, Reebok was hot property as its shoes sold like hot cakes. Approximately 5 million pairs of ‘EasyTones’ were sold in 2010 alone. Every woman wanted these ‘magic’ shoes that could do wonders to her figure without much effort. It seemed too good to be true. Well, it probably was, for in September 2011, the Federal Trade Commission (US) announced that Reebok had deceptively advertised toning shoes and apparel; subsequently, Reebok was asked to withdraw its advertisements and pay $25 million as settlement charges. The marketer, though still standing by its claims, said that it agreed to pay to avoid a protracted legal battle. For a company that spent $23 million in 2009, then another $31 million in 2010 and add to that another $10 million in 2011 in marketing its ‘toning’ products, this was a big blow. It was after all a brand positioning strategy that was created and nurtured for 3 years. Now the company will not be able to use this strategy anymore.

Yes, the market place is tough and times are even tougher nowadays, but this growing competitiveness should not force marketers (and definitely not the big ones) to succumb to pressure and take recourse to unethical means. Poking fun, using sexual innuendos or making promises that are just not true are not things that the consumer of today likes.

The consumer is very finicky and your unethical means may put him off.



BEWARE OF COMPETITORS

As products get similar, as market shares get reduced, companies are doing what it takes to win in the market place. Even before the consumer responds, it’s your competitor who responds to your marketing strategy immediately. The response could be a counter advertisement or even a complaint. Gone are the days when companies were content to fight on TV through commercials or in the grocery-aisles; today, increasingly, the battle is fought in the courtrooms. Not surprising that the number of complaints to get the competitor’s advertisements withdrawn have increased manifold. In fact, according to an article in the New York Times, never have there been so many complaints been lodged by brands against their competing brands as have been done in the past few years. The number of legal battles has increased dramatically too, especially after the recession. The goal is not to get money, but to snatch away market share. Everybody is keeping an eagle watch on everybody else. Brands are going to any extent to pull the competitor down. Pantene Conditioner challenged Dove on its claim that it ‘repaired’ hair better than Pantene. To prove its claim, Dove did a study which measured the ‘combing force’ required for treated hair, it also provided statistics on number of hair breakages in a 200- strokes-per-tresses test. Finally, it got an expert to defend its decision of using ‘wet combing’ instead of ‘dry combing’.

You need to go to ridiculous heights to stay in business. Most importantly, you need to be alert or else you could get sued and lose out to your competitors. A few months back, Molson Coors was quick to complain that its competitor Heineken’s ads, which showed a man at a party impressing the guests with his stylish moves, was an irresponsible ad because it gave the impression that alcohol could enhance personal qualities and talents. Heinekin managed to prove that this was not so as nowhere was the man actually shown drinking the beer. It saved a good ad from being taken off air by irrational complaints from competitors. The point is, right or wrong, you will have competitors gunning after you, trying their best to pull you down; so just making a good advertisement is not enough. You must have your defenses, your justifications planned even before you release the advertisement, or else you might not be able to save your best campaign and you may lose the market share!

THE REAL LOSERS


It’s true that brands are doing everything possible to pull their competitors down. Is it worth the trouble? In 2008, Campbell Soup claimed that its soups were made with ‘tender love and care’ while those of General Mills were made with MSG (a banned chemical). As expected, General Mills too immediately retaliated. Then both companies went and complained to the advertising review division. The outcome of the complaint and counter complaint is not important. What’s interesting to note is that the sales of the soups of both companies have kept declining ever since. The consumer refused to trust either of them.

When healthy comparisons turn to mud slinging, both parties lose. A brand is a promise and all brand makers should remember this fact and honor it. As consumers, we love our brands and listen to their claims and trust those claims. An intelligent marketer will never ever mess with the trust his consumers put on him. He will not use dirty tricks to outsmart his competitors, as in the long run, it’s the stronger brand that survives and wins. These petty tricks do manage to get attention, but they tend to put the consumer off too. The flip side is that today, the market is a very rough place and you need to be on your toes all the time. One wrong move could be disastrous.

There are better ways of increasing market share. Some of the good old things never get old-fashioned. Dove realized this as this year has seen its sales soar globally. No cheap gimmicks, it just concentrated on giving better products and its advertisements managed to strike an emotional chord with the consumers. Similarly, Chevrolet Cruze this year has become GM’s hottest selling car brand. When it comes to cars today, the consumer is looking for fuel efficiency and that is exactly what the brand promised in its advertisements: “40 miles per litre...”

It was not lawsuits and unethical ads that ensured that the Korean car manufacturer Kia became the most successful car of the year, but rather its focus on the consumer. Its target were young buyers so it focused on things this group liked; for example, an upmarket sound system, a robust engine, good mileage and some hamsters too! It used three cute hamsters in its advertisements to showcase the merits of its car ‘Soul’ – and voila, the car and the company today feature in America’s list of hottest brands! No poking fun at the competitor; but just a serious focus on brand building, and this mobile phone company has beaten the Goliaths hollow. It sold more smartphones in the third quarter than Apple or Samsung! HTC set out on its own just two years back (it used to be a nameless manufacturer that made phones for other brands) and today, this brand tops the US smartphone market.

There is no shortcut to success and nothing succeeds like simple hard work. The laws of business have probably not changed much as all these brands have shown. If you want to win, play with sincerity; for a brand is a promise and those who keep promises are loved the most. As with people so with brands, don’t let the other person lose trust in you. It’s the only way to become a true hero !


Thursday, November 24, 2011

IS INDIA REALLY 4 NATIONS?

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

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

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

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

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

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

CONSUMER PARADIGMS

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

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

Now take a look at how this reflects on purchases. The benchmark J.D. Power Asia Pacific 2011 India Escaped Shopper Study talks about how regional patterns affect purchases. Exterior designing and style dominates in the North, while the West looks for acquisition costs as well as total running costs. The South in comparison looks for utility, is extremely sensitive on price and even considers opinions of friends and family before taking a purchase decision. The Vizisense New Age Shopaholics survey analysed the trends of users on group buying sites and saw West and South leading over the North when it came to online shopping. An eBay India study showed that South Indians were the most active buyers at the site at 41% followed by West at 27%. North seems more skewed towards offline buying. Divisions in the zones also reflect in reading habits. The National Youth Readership survey 2010 reveals that the southern region leads with 24% youth readers, followed by the west and east with 22%, the north with 13%, central with 12% and north-east with 7% readers. Food patterns are a very obvious differentiator across regions. For instance, mustard and soya oil is preferred in the north, sunflower oil is used commonly in the west and cottonseed/groundnut oil is used in the south.

Besides, there is a definite distinction in terms of the kind of advertising. Milward Brown studied nearly a thousand advertisements across markets in India and concluded that only one in seven had a pan-Indian appeal. Leading advertising agency Ogilvy launched a unique initiative Ogilvy Dakshin, in recognition of the marked differences in which North and South India perceived advertising and the observation that brands who were simply doing language translations were only spending money on further disconnecting from customers. By using local actors, dialects, songs, et al, Ogilvy Dakshin campaigns have successfully delivered visible growth for brands like Coke, Thums Up, Asian Paints & Fortune Sunflower Oil. One campaign worth discussing is the Fortune Sunflower campaign, since the brand was totally out of consideration for Tamil Nadu and Karnataka. The agency devised a series of campaigns showing south Indians confessing on their issues with eating restrictions and the advertisements talked about how having food cooked in Sunflower Oil was light and one could eat to his/her heart’s content. The campaign took Fortune Oil to number 2 in Tamil Nadu. The characters were so successful that the agency created a kind of serial (actually a series of ads with them). They also held roadshows that honoured women and gave them free snacks and had other entertainment activities. But the killer was the shuttle service they organised from one music sabha to another (Chennai has a plethora of these sabhas playing Carnatic music towards the end of the year). They distributed snacks cooked in Fortune oil in the buses, roped in caterers at these sabhas to use Fortune Oil and promoted all this through a media campaign. When you get that much into the local flavor, success can’t be far away.

MAKING CULTURE WORK

When it comes to success stories, there are in fact three broad categories that you can define – Indian companies successfully adopting regional positioning, regional Indian players becoming national/ global brands and MNCs leveraging regional diversity.

In the first category, one brand that comes to mind is The Times of India (TOI). Till a little over a decade back, the English daily market in India was broadly defined as TOI in Mumbai, Statesman in Kolkata, Hindustan Times in Delhi and Hindu in Chennai. It is said that changing newspapers is as difficult as changing your cup of tea/coffee. But within a few years, TOI raised the stakes with its invitation pricing strategy and became the leading English broadsheet of not just India, but also the world (readership of 7.47 million by June 2011 as per IRS). Its success mantra to a large extent was also customisation of content to suit local audiences. Rahul Kansal, CMO, Bennett, Coleman & Co., affirms, “Kolkata for example, is a group with a highly eclectic set of interests. So we have kept an eclecticmix of contents in our Calcutta Times. We may have, on the other hand, a far more Bollywood-oriented mix in some other markets like Delhi for instance; as I don’t think it is as wide (the readership orientation). Chennai is a city where even the English reader seems far more comfortable with his own traditions. The newspaper there reflects that.” Dabur is another instance, which successfully forayed into South India using local branding, marketing strategy and brand names. For instance, it renamed its ‘Dabur’s Lal Dant Manjan’ as ‘Dabur Sivappu Pal Podi’ (red toothpowder in Tamil) for the South Indian market. It launched Dabur Herbal Toothpaste in Kerala and Tamil Nadu due to their preference for Southern products and Dabur Shwaasamrit in Karnataka and Kerala as it provides relief from cough, cold and bronchitis that’s quite common in these regions. TV advertisements were also customised to provide a more rational appeal since that works more with South Indian audiences. Parle acquired Tops and the brand successfully took around 10% of the market in West Bengal & Assam in direct competition to a strong regional brand like Bisk Farm. It also took its Jhalmuri flavoured wafers national. Similarly, ITC launched Bingo Masala Chips for North India and then took the flavour across India. Local flavours in general do have a certain appeal across the nation. Apollo Tyres used the concept of diversity as well. Company Chairman O. S. Kanwar emphasised on this thus, “North Indian truck drivers tend to overload their trucks as compared to South Indian drivers. So we researched and developed different tyres for the two segments!”

When it comes to regional brands going national, the telecom sector is full of them. Bharti Airtel itself started from New Delhi and went into more circles across India and went global through a spate of acquisitions. The most recent case of a regional brand going national is Aircel. Till around four years back, it was limited to South India. With aggressive national intent, it launched simultaneously in eight new circles. Then it made a bid for 3G licences and did a national branding for itself by using Indian cricket team captain M. S. Dhoni. It has also brought customised offers for various regions. In Odisha, it launched the Rs.30p/min. call for STD from Aircel to any other operator and a balance transfer facility for its pre-paid subscribers in Odisha and unlimited free Aircel to Aircel calling in Bihar and Jharkhand for 30 days at a price of Rs.349/-. Its 3G services are now available across India barring 3 circles. The company, which had around 31 million subscribers by end-2009, crossed 50 million in January this year. Cavincare’s story is well known, which started from founder C. K. Ranganathan’s initiative of selling Chik shampoo satchets through bicycle vendors. He later took the brand to overseas markets like Bangladesh and Sri Lanka. Another instance is Amrapali Jewels, which started with one retail store in Jaipur. Rather than being conservative, they selected the most unique pieces of jewellery from across India and set up a luxury jewellery business, which has a presence across India and in UK, US, Sri Lanka, Spain & Nigeria (they designed the entire jewellery for the Hollywood flick Troy, which really launched them on the global stage). Waghbakri tea and MTR Foods are other instances of brands that leveraged their regional strengths to go national and global.

Some MNCs have also got equal to the task. Unilever’s India arm has understood it only too well after a number of setbacks from regional players like Wipro’s Santoor, Anchor Health & Beauty, Godrej’s No.1, Ghadi & Sasa. Now it wants to act like a regional player. An interesting instance is HUL’s launch of Brooke Bond Sehatmand tea, a tea they developed for the regional (more specifically rural) market with vitamins fused into each granule, positioning it as a health supplement. They further ensured that they customised tastes to regions, like catering to South Indian taste for strong flavours and dark colours. The Bharti-Wal-Mart venture, rather than go pan-India at the outset, decided to start with Amritsar in Punjab and then go further to North India with its cash & carry stores as it found the agri-rich state to be a lucrative starting point where it could start building a strong supply chain. Actually, the company strongly believes that supply chains have to be regional in India at least for now, since national supply chains aren’t so strong yet. Nestle’s Maggi has been a traditional success story of launching regional flavours from time to time and so has Lays from Pepsico.

There have been instances of failures or setbacks for major brands too, like HUL mentioned above. Wipro’s Santoor overtook Lux in south India while Godrej No.1 overtook Lux and Lifebuoy in the north in 2009. It’s amazing how Maruti, which is considered more apt for conservative and tradition loving customers, was not accepted too well in the South as it was perceived as a North Indian firm (south just accounted for around 20% of national sales till a few years back). Through innovative campaigns like the annual Dakshin Dare rally and launch of more economical diesel variants, the company claims to have improved its standing. Coca Cola faced a different kind of failure when it refused to acknowledge or appreciate local farmer concerns over water shortages in Plachimada, Kerala, and had to shut down its plant.

All in all, it’s time marketers understood the relevance of cultural diversity in India and bring it into this ‘4 nation’ framework. And like their environment keeps telling them everyday, they cannot rest at that, as they have to also then look at diversity within regions! Besides, the post-1991 generation, which accounts for over 50% of India, is confronting traditional values as well as getting exposed to modern, global ways of living. Not much research has been done on what kind of cultural orientations this youth market will display in the coming time and whether the diversity of previous generations will diminish or get stronger. Food for thought, isn’t it?

Thursday, November 17, 2011

MOVE OVER CRICKET, HERE COME THE CARS

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

CARS VS CRICKET FOR SPONSORS

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

FORMULA FOR SUCCESS

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

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

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

Bagging the ‘title’ sponsorship was definitely a big deal for Airtel. For a game like Formula One, where team title sponsorships are rarely available, this was a golden opportunity for Airtel. Being the title sponsor gives one the maximum branding presence. The advantages are huge. Petronas, the international oil and gas corporation, last year renewed its title sponsorship of the Malaysian round of the Formula One and will hold the rights till 2015. In fact, this year the championship will be known as the ‘Petronas Malaysia Grand Prix’ (just as the Indian one is known as the Airtel Grand Prix). Not only will the event give Petronas huge visibility and global appeal, but will position Malaysia as a major motorsport hub and tourist destination.

In fact, that is why it is so difficult to get the title sponsorship, and it is usually contracted for a minimum of five years. The big title sponsors of Formula One have been, Vodafone, Renault, Virgin, DHL, Etihad Airways and Red Bull.

Red Bull in fact is an interesting case study. The sports drink manufacturer has spent more than $600 million in the last five years on F1 sponsorships and has its logo emblazoned on two teams’ cars. It was worth the money and effort for last year Red Bull received more than four hours of ‘free’ television airtime during the first fifteen F1 races. No one even came close to that amount of coverage save LG (LG incidentally did not invest much in cricket in India this festive season in spite of being a key player in IPL 4). More than being seen, it’s also important to be seen in the right places and F1 is ‘the’ place to be seen at for everybody. No wonder the US company Gulf Oil, which believes in being at the right place at the right time, decided to make its presence felt at the Indian F1 too.

F1 is bigger in all terms. Be it the money involved, the viewership, or even the duration of the event , it beats all sports including cricket or football. Many sports events finish in a day. F1 is a three day event where the biggest of sponsors, the biggest of companies and the biggest of business leaders hobnob. It’s a sport of big monies. Delta 3 is a company that receives all its revenues from fees that TV stations pay to screen F1 as well as the fees paid by circuits and sponsors of the sport. Despite facing the worst recession in living memory, in 2009, Delta 3 saw its revenues grow 6.4% to a record of $1.1billion. Bernie Ecclestone the founder of F1 and the CEO of Delta 3’s ultimate owner Delta Topco sure knows what will work and he definitely has a winner in his hands.

F1 NEEDS ASIA

However, with Europe reaching its saturation, with France backing out from the GP, Bernie needs a new and thriving market. Add to this the fact that UK has abolished tobacco advertising, along with the European Union , that has banned tobacco companies from sponsoring or advertising within sporting events, leaving Marlboro (from the Philip Morris International group), one of the biggest sponsors of F1, looking for new places to advertise. In fact, Marlboro had to remove its logo from the F1 Ferrari cars due to this ban. However, so high is the advantage of being associated with this sport that neither Ferrari nor Marlboro want to end their association. So they have found a new way to get out of this tricky situation. The Ferrari cars now do not (or rather cannot) carry the Marlboro logo but they now carry a ‘bar code’ design which is exactly like the bottom of the Marlboro cigarette pack! The team, after all, has a contract with Marlboro till 2011 worth a total of $1 billion and the team’s official name even now is “Scuderia Ferrari Marlboro”. Seems like a tough association to break.

Though F1 was primarily a European sport, the last decade has seen a shift ,with half the races being held in Asia (Korea, Japan, Bahrain, Abu Dhabi, India, Singapore and China) as many of the Asian countries are moving from the developing to developed nation status.

For the F1 organizers too, it makes business sense. India is a big market andits middle class is finally getting introduced to global brands. India is on the fast lane today, with its trillion-plus-dollar economy, it is Asia’s largest after Japan and China.

If F1 has helped improve India’s image on the international stage (after the debacle of the CWG), then on the flip-side India is a market with a vast potential that cannot be ignored by F1. According to a survey conducted by TAM Sports, the Indian Grand Prix garnered six times more average TRPs (television rating points) than any other Grand Prix ever held. Bookmyshow.com in three hours sold tickets worth Rs.1.5 crores.

The sponsors for long have been investing in cricket and there seems to be a fatigue creeping in. With such excitement around F1 among the Indian audience, sponsors have suddenly found new avenues to advertise in and diversify their portfolio. Not surprisingly, Amul decided to sponsor the Swiss F1 team Sauber. The sponsors are slowly warming up to the idea as is visible from the number of local brands that have associated with the sport. Red Bull and Tag Heuer have been old loyalists of the sport, but now we have Reebok, Gitanjali, Lifestyle, JK Tyre and many others joining in.

The sport is here to stay and slowly but surely it will develop a strong foothold in this market too, and give cricket a run for its money.

Be it the viewers, or the sponsors or the organizers, suddenly everybody is talking about and is excited about a new player in town. Move over cricket, the cars are here!

Thursday, October 6, 2011

TO SELL YOUR PRODUCT, GO TO THE MOVIES!

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

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

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

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

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

THE POWER OF FILMS

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

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

James Bond films have been most famous for in-film branding. When the Aston Martin was featured in the Bond film Goldfinger, it was such a big hit that the company put it on its brochure. Product placement specialist Karen Sortito ensured that BMW’s new model Z3 shone as bright as James Bond in the film Golden Eye. In fact, the in film placement was so successful that not just did the sales of the BMW, Z4 skyrocket after the movie’s release, but Karen found a long line of brands waiting at her doorstep to help them get visibility. For the next Bond film, Tomorrow Never Dies, she could well rope in $100 million worth of tie-ups with brands like Omega, L’Oreal, Avis etc.

Your product might be good but it needs the right ‘image’ to stand out in the marketplace. It has to have a distinct personality which its buyers can associate with. In film branding helps it do just that.

If there is one company that understands the power of in-film branding, it’s Apple. Think of any hit movie and chances are you will find an Apple product. Be it blockbusters like Ironman, The Social Network, Tron, The Twilight Saga, 17 Again, Transformers, Cars 2 , Green Lantern, or Rise of the Planet of the Apes, Apple has been the constant star.

When it comes to product placement dominance, this brand leads. For more than three years in a row, Apple has been the most visible brand in films. This year, it featured in 13 films. The next visible brand is Chevrolet that featured in 9 movies. In 2009, it topped the charts by featuring in 19 movies; then, again in 2010, it ranked one, for it was seen in 10 films. The next in line on visibility in movies is Nike. It appeared in 8 films. There is no formula yet to calculate ROI but it’s clear that it pays to be in the limelight! The wine company ‘Clos Du Val’ ensured that it made an appearance in 100 films by simply sending the directors of the movies free cases of its wine. The winery reported an increase of 50 percent in its sales after this!

THE IMAGE GAME

Movies do influence our buying decisions. As Andy Warhol put it beautifully years ago, “It’s the movies that have really been running things in America ever since they were invented. They show you what to do, how to do it, when to do it, how to feel about it, and how to look how you feel about it.”

Once a brand is featured in a movie, it changes its image totally. The brand develops a personality of its own based on which star uses it in the movie, where it’s used and how it’s used. Think about it – if Pepsi succeeds in convincing Spiderman to drink Pepsi in the movie, I am sure it would defeat Coke, for every child would want it, to become like Spiderman. It’s all about personality. Be it politics or business, the one with the ‘coolest’ personality always outshines others. Movies develop an aura around a brand and give it a unique personality which helps it differentiate itself from competitors and win market share. Years ago, Morgan Spurlock made a documentary on McDonald’s, titled Supersize Me. In this docu, Morgan ate only at Mc-Donald’s for a month and showed how he gained weight and developed a whole lot of health problems, proving how dangerous fast food is. The film got everyone thinking, including McDonald’s which now has introduced healthier options in its menu. That’s the power of a strong image and nothing can get stronger than the images one sees on that huge screen in the movie hall. It creates the strongest of impressions. To prove how strong ‘images’ are, Spurlock made a documentary again which got everyone talking, yet again. The documentary was titled “The Greatest Movie Ever Sold” He shows the effect of product placement and advertorial tie-ups at the movies. In fact, the title of his film itself proves how strong an impact a movie can create. The full name of his documentary is “POM Wonderful Presents the Greatest Movie Ever Sold” and the pomegranate juice manufacturer Pom Wonderful paid him $1 million for the title. Morgan made his point even before one saw the first scene of the film. He says after seeing his documentary the public would change their whole perceptions about the movies.

Yes, the key word is perception. That’s exactly what movies build and once your brand is featured in a blockbuster, it will change the way the audience looks at your brand.

So if you really want your brand to become a star, you need to head for the movies, for that’s the place where stars are made.