It’s not enough to advertise. Companies like Unilever, Medimix and Reliance Comm. have focused more on changing consumer perceptions and succeeded.
A recent study was d
one on children aged between three and five. Each child was given two samples of food, one in McDonald’s packaging and one in plain wrapping. The children found the food in McDonald’s packaging up to six times more appetising than the one in plain packaging. Fact was that other than packaging, both samples were identical!
A survey was conducted and respondents were asked to recall a brand. Almost all could remember the brand and most of them claimed they saw the product being advertised on television. The company was confused, as they had never advertised on television! In another survey, the number of people who recalled seeing an ad in a prestigious publication exceeded its readership. Why do such things happen? The simple answer is – certain brands remain at the top of your mind and you think you saw them in places where they didn’t exist.
As marketers we have important lessons to learn from these outcomes. The consumer sees your products, judges it and analyses it completely differently from the way marketers look at the brand and their strategies.
During food poisoning, diarrhoea et al, the doctor might advice you to consume Limca in small sips to replace body salt… the reality is it is just another carbonated beverage. Sprite, 7 Up, Canada Dry will never be able to figure out why people preferred Limca over their product when all were identical.
Pepsi encountered the same confusion when in 70s it did a blind taste test. People were asked to choose which one they preferred, Coke or Pepsi (without showing the brand names). Most could not differentiate between Coke & Pepsi, and those who could, said that they thought Pepsi tasted better. Yet, when they were actually shown the brand names, 3 out of 4 preferred Coke.
We associate certain images, certain feelings with certain brands. So then is it true that how we choose a particular brand, curiously has nothing to do with conscious preference – rather the subconscious. Probably yes. Consumers have their own set of perceptions that successful marketers need to understand. Consider this: sachets costs more than regular sizes in terms of “per ml” cost. Yet across the spectrum, consumers have readily paid a premium for these sachets, without even realising it.
Many a times it’s the popularity of a particular brand that gives it the real edge. In a survey carried out by Young & Rubicon, it was found that brands such as Kodak, Maruti, Pepsi, Amul and Raymond were topmost in consumer mind in terms of “brand esteem.” The fact was most of their opinion were based on the popularity than the quality judgment of the brand.
Brand perception influences purchase decisions and advertising plays a very powerful role in building that perception. No wonder FMCG majors opt for high decibel advertising to reinforce the notion of perceived superiority – and it seems to work. According to ORG-MARG, branded goods comprise for 65% of sales even in villages.
Managing or mismanaging perceptions?
Fire extinguishers were considered to be an industrial product till “Real Value” launched its hand held portable fire extinguishers for the masses. Man’s primordial “fear of fire” was used brilliantly in the ads to make people go out and buy one.
Medimix in the 60s was perceived as a medicated soap to stop itchiness and the salesman was dubbed as the “itch-soap-man.” Today, it’s one of the top 10 toilet soap brands in the country. Through continuous promotions & indirect advertising in Tamil films, the brand changed its image from a itch-soap to a beauty soap. This is very similar to what Lifebuoy has managed to accomplish. Launched as a soap which kills germs, the soap today competes with the top beauty soaps of India! It revamped its advertising totally.
In a survey, the respondents were asked to associate Bollywood superstar Amitabh Bachchan with any paint. About 80% associated him with Asian Paints. Reality was that he was endorsing Nerolac, whose biggest competitor was Asian Paints! In effect, people’s perceptions can cause your marketing and advertising strategy to backfire. Years ago when people were asked which brand of suiting Nawab Pataudi endorses, most said Raymond, when he actually endorsed Grasim! In fact, a lot of consumers cannot differentiate between Graviera, Gwalior and Grasim. Most perceive them as similar.
Just great advertisements are not enough to sell a brand. You need to find out how your brand looks from the customer’s point of view. Anil Ambani realised that people viewed his brand as not very emotive, approachable or youthful; and hardly anyone remembered its punch line “Growth is Life.” To get back into the grove and connect better with its consumers, last year, the company changed its colour coding to red & blue and the punch line to “Think Bigger.” Vijay Mallya may have taken over Air Deccan, but he has to tread with caution. People loved it for its Re.1 ticket, but the flight cancellations & delays gave Air Deccan some amount of negative publicity. Mallaya needs to structure this brand with care to gain maximum mileage.
Some things negate change
Foreign banks may cry hoarse explaining the benefits of banking with them, but somehow Indian consumers trust public sector banks more. SBI dominates the mind space of most. It’s a fact, only the very rich in India actually choose their bank – the rest generally walk into the nearest branch! The ‘sting’ in Dettol ensured that consumers picked it up as compared to Savlon for they felt it killed germs better. Safi and its bitter taste works miraculously to sustain the belief that it purifies blood. Some things just don’t change. However, sustained advertising sometimes helps, as it did for a whole lot of brands. People initially rejected Zero B water purifier. It was too small to be effective.
Kellogs (through its ads) changed the perceptions of it being expensive and not filling and nutritious enough as compared to traditional Indian breakfast dishes.
Bottled water is big business in Europe. However BBC concluded after a survey that people were actually buying the bottle – the image – not the water. According to experts, there was hardly any difference between tap and bottled water. Yet, most consumers felt that bottled water tastes clean! When Maggie was launched in India, housewives refused to accept that a nutritious meal could be prepared in just two minutes. Today Indians consume the maxium Maggie noodles in the world.
Success is more the art of managing consumer perceptions well. After all, many times, what they think is – far from reality!
Some things negate change
Foreign banks may cry hoarse explaining the benefits of banking with them, but somehow Indian consumers trust public sector banks more. SBI dominates the mind space of most. It’s a fact, only the very rich in India actually choose their bank – the rest generally walk into the nearest branch! The ‘sting’ in Dettol ensured that consumers picked it up as compared to Savlon for they felt it killed germs better. Safi and its bitter taste works miraculously to sustain the belief that it purifies blood. Some things just don’t change. However, sustained advertising sometimes helps, as it did for a whole lot of brands. People initially rejected Zero B water purifier. It was too small to be effective.
Kellogs (through its ads) changed the perceptions of it being expensive and not filling and nutritious enough as compared to traditional Indian breakfast dishes.
Bottled water is big business in Europe. However
BBC concluded after a survey that people were actually buying the bottle – the image – not the water. According to experts, there was hardly any difference between tap and bottled water. Yet, most consumers felt that bottled water tastes clean! When Maggie was launched in India, housewives refused to accept that a nutritious meal could be prepared in just two minutes. Today Indians consume the maxium Maggie noodles in the world.
Success is more the art of managing consumer perceptions well. After all, many times, what they think is – far from reality!
Copyright © :-Rajita chaudhuri and Planman Media
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)
A recent study was d
one on children aged between three and five. Each child was given two samples of food, one in McDonald’s packaging and one in plain wrapping. The children found the food in McDonald’s packaging up to six times more appetising than the one in plain packaging. Fact was that other than packaging, both samples were identical!A survey was conducted and respondents were asked to recall a brand. Almost all could remember the brand and most of them claimed they saw the product being advertised on television. The company was confused, as they had never advertised on television! In another survey, the number of people who recalled seeing an ad in a prestigious publication exceeded its readership. Why do such things happen? The simple answer is – certain brands remain at the top of your mind and you think you saw them in places where they didn’t exist.
As marketers we have important lessons to learn from these outcomes. The consumer sees your products, judges it and analyses it completely differently from the way marketers look at the brand and their strategies.
During food poisoning, diarrhoea et al, the doctor might advice you to consume Limca in small sips to replace body salt… the reality is it is just another carbonated beverage. Sprite, 7 Up, Canada Dry will never be able to figure out why people preferred Limca over their product when all were identical.
Pepsi encountered the same confusion when in 70s it did a blind taste test. People were asked to choose which one they preferred, Coke or Pepsi (without showing the brand names). Most could not differentiate between Coke & Pepsi, and those who could, said that they thought Pepsi tasted better. Yet, when they were actually shown the brand names, 3 out of 4 preferred Coke.
We associate certain images, certain feelings with certain brands. So then is it true that how we choose a particular brand, curiously has nothing to do with conscious preference – rather the subconscious. Probably yes. Consumers have their own set of perceptions that successful marketers need to understand. Consider this: sachets costs more than regular sizes in terms of “per ml” cost. Yet across the spectrum, consumers have readily paid a premium for these sachets, without even realising it.
Many a times it’s the popularity of a particular brand that gives it the real edge. In a survey carried out by Young & Rubicon, it was found that brands such as Kodak, Maruti, Pepsi, Amul and Raymond were topmost in consumer mind in terms of “brand esteem.” The fact was most of their opinion were based on the popularity than the quality judgment of the brand.
Brand perception influences purchase decisions and advertising plays a very powerful role in building that perception. No wonder FMCG majors opt for high decibel advertising to reinforce the notion of perceived superiority – and it seems to work. According to ORG-MARG, branded goods comprise for 65% of sales even in villages.
Managing or mismanaging perceptions?
Fire extinguishers were considered to be an industrial product till “Real Value” launched its hand held portable fire extinguishers for the masses. Man’s primordial “fear of fire” was used brilliantly in the ads to make people go out and buy one.
Medimix in the 60s was perceived as a medicated soap to stop itchiness and the salesman was dubbed as the “itch-soap-man.” Today, it’s one of the top 10 toilet soap brands in the country. Through continuous promotions & indirect advertising in Tamil films, the brand changed its image from a itch-soap to a beauty soap. This is very similar to what Lifebuoy has managed to accomplish. Launched as a soap which kills germs, the soap today competes with the top beauty soaps of India! It revamped its advertising totally.
In a survey, the respondents were asked to associate Bollywood superstar Amitabh Bachchan with any paint. About 80% associated him with Asian Paints. Reality was that he was endorsing Nerolac, whose biggest competitor was Asian Paints! In effect, people’s perceptions can cause your marketing and advertising strategy to backfire. Years ago when people were asked which brand of suiting Nawab Pataudi endorses, most said Raymond, when he actually endorsed Grasim! In fact, a lot of consumers cannot differentiate between Graviera, Gwalior and Grasim. Most perceive them as similar.
Just great advertisements are not enough to sell a brand. You need to find out how your brand looks from the customer’s point of view. Anil Ambani realised that people viewed his brand as not very emotive, approachable or youthful; and hardly anyone remembered its punch line “Growth is Life.” To get back into the grove and connect better with its consumers, last year, the company changed its colour coding to red & blue and the punch line to “Think Bigger.” Vijay Mallya may have taken over Air Deccan, but he has to tread with caution. People loved it for its Re.1 ticket, but the flight cancellations & delays gave Air Deccan some amount of negative publicity. Mallaya needs to structure this brand with care to gain maximum mileage.
Some things negate change
Foreign banks may cry hoarse explaining the benefits of banking with them, but somehow Indian consumers trust public sector banks more. SBI dominates the mind space of most. It’s a fact, only the very rich in India actually choose their bank – the rest generally walk into the nearest branch! The ‘sting’ in Dettol ensured that consumers picked it up as compared to Savlon for they felt it killed germs better. Safi and its bitter taste works miraculously to sustain the belief that it purifies blood. Some things just don’t change. However, sustained advertising sometimes helps, as it did for a whole lot of brands. People initially rejected Zero B water purifier. It was too small to be effective.
Kellogs (through its ads) changed the perceptions of it being expensive and not filling and nutritious enough as compared to traditional Indian breakfast dishes.
Bottled water is big business in Europe. However BBC concluded after a survey that people were actually buying the bottle – the image – not the water. According to experts, there was hardly any difference between tap and bottled water. Yet, most consumers felt that bottled water tastes clean! When Maggie was launched in India, housewives refused to accept that a nutritious meal could be prepared in just two minutes. Today Indians consume the maxium Maggie noodles in the world.
Success is more the art of managing consumer perceptions well. After all, many times, what they think is – far from reality!
Some things negate change
Foreign banks may cry hoarse explaining the benefits of banking with them, but somehow Indian consumers trust public sector banks more. SBI dominates the mind space of most. It’s a fact, only the very rich in India actually choose their bank – the rest generally walk into the nearest branch! The ‘sting’ in Dettol ensured that consumers picked it up as compared to Savlon for they felt it killed germs better. Safi and its bitter taste works miraculously to sustain the belief that it purifies blood. Some things just don’t change. However, sustained advertising sometimes helps, as it did for a whole lot of brands. People initially rejected Zero B water purifier. It was too small to be effective.
Kellogs (through its ads) changed the perceptions of it being expensive and not filling and nutritious enough as compared to traditional Indian breakfast dishes.
Bottled water is big business in Europe. However
BBC concluded after a survey that people were actually buying the bottle – the image – not the water. According to experts, there was hardly any difference between tap and bottled water. Yet, most consumers felt that bottled water tastes clean! When Maggie was launched in India, housewives refused to accept that a nutritious meal could be prepared in just two minutes. Today Indians consume the maxium Maggie noodles in the world.Success is more the art of managing consumer perceptions well. After all, many times, what they think is – far from reality!
Copyright © :-Rajita chaudhuri and Planman Media
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)
and a spectacular show of martial arts and kathak. Not just these, there would be scrumptious Indian cuisine and mehndi stalls too. The event has everything you possibly can think of, except one tiny detail – air tickets are not included. For this one’s not a Diwali mela happening in your backyard, but at the Trafalgar Square in London. Every year, thousands of lamps are lit all over this beautiful square, symbolising the return of Lord Ram back to Ayodhya, even as thousands of NRIs come together to celebrate “Diwali in the Square”.
outside India. It’s a non-stop entertainment mela with competitions like roti-rolling and sari-tying, and is funded by The Western Union. A whole lot of MNCs are realising the power of the ‘festival of lights’ and its ability to brighten up their balance sheets too! Western Union knows that Diwali time is the busiest time of the year for them, as people send money transfers to family & friends back home and it pays to be associated with the Diwali festivities. Non-Resident Indian communities are getting larger and richer and companies world over are watching their spending habits very closely. Onlyflorist.co.uk, a popular flower delivery website in the UK, has included Diwali as a special date when you can send flowers, along with days like Christmas and Halloween. Mattle Toys too realised that they needed to dress up their star Barbie doll in Indian clothes to increase sales during the season; a special Barbie was launched before the festive season.
Nike? If the names in the first list don’t ring a bell then, it’s sad, for your name just got transferred into the list of “the older generation”.The market is in turmoil and the best brands are losing their grip on the market. There is a whole new breed of shoppers from whom these once famous big brands are facing a shrug of indifference. Levi’s, an iconic brand, woke up to the harsh reality that it was losing its popularity and watched in disbelief its market share slide down & down. Nike’s sneaker sales are tumbling too, and it no longer remains the coveted one. Who is causing all this upheaval? It’s a new generation called “Generation Y,” which is changing the rules of the game. At the “Pepsi and MTV Youth Icon 2007” awards, Orkut was declared winner as the style icon for the Generation X. In this fiercely fought battle of style, Orkut defeated big names like Abhishek Bachchan, among others. The world is changing at a super fast pace and marketers need to make a quick note of this if they want to stay ahead. This is a different generation. 
generation which enjoys the iPod, as much as the ‘My Pepsi My Can’ concept. It is always looking for something different and if you can keep it stimulated all the time, you win. The reason why Nokia mobile phones have beaten their competitors is because of constant innovation which has prevented this generation from getting bored. This generation thinks differently. They rank Honda as the number one car brand because Honda makes it easy to accessorise cars and remodel them. Plus, their preference to shop at eBay has more passion than at Macy’s. To keep pace with this new breed of consumers, brands are reworking their strategies. Toyota has designed a new car “Echo” which is targeted exclusively at first-time-car-owners for it calculated that by 2010 there would be four million “new drivers.” Motorola introduced the “Razr” phone to attract these young guys. Tommy Hilfiger ensured that it did not slip down the popularity charts by making sure that those teen film actors, rappers, and young MTV icons were seen sporting its clothes. Volkswagen changed its advertising strategy. The ads are more quirky, less serious, funny, unpretentious and less bothered about keeping the traditional image of the company. Coca-Cola is launching “Red Lounge” where the cool guys can chill out and Pepsi can be kept at bay.Even real estate developers are designing apartments to suit the needs of these very highly educated, young first-time renters, with plenty of cash and a want for premium and rarest of tastes. Wi-Fi, high speed internet, hundred-channel cable networks, gyms et al, are the basics nowadays. To surprise them, developers are putting cable connections in the wall anticipating that these guys would use a flat screen TV. They are including coffee bars in the apartments. Options of high speed dating, video games played on big screen are some other unique offerings. So much so that even the rules and ways of marketing have changed! McDonald’s has realised that product-placement in video games is more beneficial than ‘in-film’ branding. Lux sells itself as “**X” to appeal to the young crowd. It has created a dance track “Lux Friday Night Fever” to look cool-n-happening. Microsoft has launched coolhotmail.com to make your e-mail id more rocking. Samsung came up with its youth marketing initiative “Target yo,” for they are the key influencers of digital & high-tech purchases. Retailers are also changing their store designs to cater to this generation. Shops today contain areas with lots of visual stimuli, brilliant colours and interactive activities to encourage these young people to hang out and not just shop. Virgin Records long back started this – by putting lounge chairs in its music store, with option of listening to the music without any compulsion of buying. For sure, this group of consumers cannot be ignored and is soon going to take over the world. What’s more, if you catch them young, chances of turning them into loyal customers for many years to come is very high.
don’t read newspapers, but love magazines. They hang out in ‘cool’ joints. Pubs are passé; cafes are in. So Himalaya Drug Company decided to launch its honey in Café Coffee Day outlets. HLL launched its Liril Orange Soap in Café Coffee Day too. Traditional advertising is taking a back seat. For this crowd, word of mouth works. Mountain Dew became a super hit, not because of its ad campaign, but because word spread that it contained a very high dose of caffeine.This generation lives off SMSes, iPods and chat sites and those are the very places to catch them. Very rarely will they be found sitting in front of TV or reading newspapers. They live in a virtual world – literally. No wonder sunsilk gangofgirls.com got 100,000 members in just 36 days; and companies like Unilever, Nokia & Nestle are now spending less on TV and print, and more on mobile phone & internet. Axe has created a virtual land called ‘Axeland’ to attract consumers. Lee (jeans) has now launched the ‘Lee Lounge’ as its online social community. From pub crawling to blog trawling, this generation lives life on its own terms. They buy differently and they need to be marketed to differently. From hereon, a scorching pace of innovation, unconventional marketing, honesty and the ability to connect with the youth is what will keep most brands in business. To figure how to wriggle your way into the hearts and wallets of this brilliantly networked, well informed, hi-tech group of people – all you need to do is think and act like them. This generation is unique, for this is (yes, you got it right) generation next! 
Forbes Asia’s ‘Fabulous 50’ list is out, and there are 12 Indian companies in it! Bharat Heavy Electricals Ltd. (BHEL), Bharti Airtel, Grasim Industries, HDFC Bank, ICICI Bank, Infosys Technologies, Larsen & Toubro, Reliance Industries, Satyam Computer Services, Tata Consultancy Services, Tata Steel and Wipro, all figure. India has managed to secure 12 places, while Taiwan is next with 10 and China with seven. Only companies with revenues or market capitalization of at least $5 billion and a fiveyear record of operating profitability and return on equity are considered for this listing. Its criteria include long term profitability, projected earnings, sales and earnings growth, stock price appreciation etc.. Fabulous 50 list will be out in September 17 issue of Forbes Asia.
