With the rapidly changing consumer environment, the marketing head is constantly grappling with new ways to understand the consumer
The fragmentation of media (primarily TV) has led to increased cost per contact, as well as difficulty in influencing the consumer because of the clutter. Ten years back, it was still possible to reach the consumer effectively through conventional 'broadcast mediums' like TV and print.
However, the explosion of media choices has put an enormous premium on getting the attention of the consumer. As a result, it becomes imperative to influence the consumer at multiple touch-points, so that the brand can 'break through the clutter' and 'engage the consumer, one-to-one'. Consequently, this has led to a tremendous growth of out-of-home (OOH) media solutions and one-on-one consumer contact programmes that hope to engage the consumer far more effectively, by letting her experience the brand in a way that is not possible through the 30- or 60-second commercials.
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Despite so much happening in the FMCG sector, the fundamental role of the marketing head, which is to 'consistently deliver superior and sustainable consumer delight' has not changed. But with the rapidly changing consumer environment, the marketing head is constantly grappling with new ways to understand the consumer. The marketing head is also charged with the responsibility of creating innovative and engaging programmes for consumer interaction, that can propagate word of mouth for the brands that enables consumers to dialogue amongst themselves.
Within the personal care industry, there is a need to look at low-cost distribution that reaches the consumers at the bottom of the pyramid. At ITC, we are exploring how we can use our e-choupals and Choupal Sagars to reach consumers. What, for many years, was considered new and niche media meant for a small set of consumers has now become almost mainstream media today as today's consumer wants to choose the content and timing of media consumption. There is still enormous work to be done in understanding consumer behaviour with regard to digital media and develop customised programmes for the same. There is a need to move beyond fancy websites and push SMS to truly engage with the consumer in places in the digital world that the consumer wishes to be in. Conventional advertising agencies are still struggling to grapple with this change and one is witnessing the growth of specialisation in this area. The challenge is to integrate all media - digital and otherwise - in every brand campaign which can truly touch the consumer at all relevant points in his/her life.
Consumers are much more educated, informed and demanding now. ITC's in-store marketing programmes across different trade channels are geared towards working with the trade members to deliver interesting consumer shopping experiences that showcases the superiority of our value proposition. The importance of 'trade activation' has remained steady in the last 10 years. In spite of the growth of modern trade, kirana stores still dominate India. Some of the traditional trade marketing activities still remain core to the personal care industry - like displays, trade schemes, merchandising, loyalty programmes and trade credit management. The importance of celebrity endorsements in the personal care space also continues unabated.
There has been a shift in the demographics and purchasing power of individuals. There is also an increased importance that the consumer attaches to grooming and is constantly seeking more efficacious products that reflect his identity and aspirations. We have developed a portfolio of personal care brands and products that are in tune with the aspirations of these different consumer segments. For ITC, personal care is a new business and there is a focus on both 'immediate' as well as 'long-term'.
From shampoos to conditioners, body soaps to shower gels, plain bathing bars to gel bathing bars, many new segments have developed over the last few years. The other segment that is rapidly emerging is the luxury or super premium segment. The notion that value means lower pricing is fast changing to "the price that I am willing to pay for the value that I seek". People are beginning to evaluate price not merely in an absolute sense, but in relation to the value that they get at that price. Hence, while a Superia soap provides value at Rs 10 to a certain set of consumers, a Vivel Di Wills soap with a unique flip-open carton pack provides value at Rs 18. Consumers are willing to pay a premium even for relatively new brands like Essenza Di Wills and Fiama Di Wills because of the unique and superior benefits that they derive from these brands.
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