Open or Close ?

Let me again comment on the Indian telecom industry and its giants, who have a common feature called adaptibilty.

When a brand is being built, marketers use offensive strategies while they use defensive tactics to maintain their brands. Indian Telecom mammoths are now using defensive strategies to maintain their brand, and thereby retain their customer base. The major components of defensive branding strategies are adaptability, protectibility and transferability, which are being well used by players like Airtel, who have adapted the brand as per the heinous context of global meltdown.

Airtel has recently come up with its new ad campaign called "Anna and her special 5". Click here to view the commercial.

The commercial shows the synergy between Anna and her group of five friends, but there is no information on the significance of the figure 5 in the product offering. In the end of all TVCs of the campaign, there has been a mention of a toll free number for more information on the deal.

The ads are really cute and adorable with a special component which is called need for closure. When consumers are exposed to any marketing stimulus like a TVC, they tend to form perceptions, which may be favorable or unfavorable. In the process of organization of perceptions, marketers play a major role in moulding the consumer perceptions which are favorable for the brand.

Humans, by default have a tendency to organize their thoughts and perceptions and form a complete picture for every incoming stimulus. As such, they need a beginning, content or body for the perceptual image and then the closure.

In the new Airtel campaign of special 5, there is a beginning with introduction of the characters of the commercial as Anna and her friends and also the content which are interactions amongst friends, but there is no closure as there is lack of explanation on the special five offer, though there is a hint on lower call rates. This need for closure is addressed by giving a toll free contact number where customers can get the details of the offer.

Now, as the consumers have an urge to closure for the perceptual picture formed by the stimulus, TVC in the contemporary context, and as such, customers are compelled to dial to the customer contact centre, which would serve as a point of contact for the company to sell the new offering.

Well, most of the commercials and campaigns fail due to lack of conceptual support in managing the marketing mix, but Airtel has really lived up to the need of the hour.

Marketing Mantra of the month

"In good times, people want to advertise, in bad times, they have to."-Bruce Barton, Co-founder, BBDO agency.

Break Through the Clutter

I have been writing a lot on telecom players. Here is another piece of applause for this highly dyanamic, yet positively competitive industry. As the competition is immense, the organizations in the telecom industry are making constant efforts to beat the rest.

Here comes Airtel with an adorable TV commercial featuring a cute kid trying to protect her boat from the rain, unabling which she is helped by her five friends. Click here to view the commercial.

The TVC is sweet and adorable, but the only problem with the TVC has been the slight resemblance of the child model with the one used in Vodafone TVC. There have been reviews from audience that in the midst of the ad, they were expecting the entry of the famous Vodafone pug.

This erronoeus part of the Airtel TVC can be attributed to the effort to break through the clutter. Organizations have lately been using children in the commercial to enhance the likeability and memorability components of the commercial.

Well, we really can't blame Airtel for using the kid resembling the one in Vodafone commercial and I really applaud Airtel for coming up with such an adorable ad campaign.

Three cheers!!!

Vitality of socio-cultural environment

What do you think determines the purchase behavior of buyers? Well, the two major factors which mould the buying behavior of consumers are the marketing mix and the socio-cultural environment of the buyers. Marketing mix is the marketers' domain while marketers have no influence over the socio-cultural environment of the buyers.

Lets us talk about the socio cultural environment. It includes ones' family, friends, culture, beliefs and societal norms. As the domain of discussion is socio-cultural environment, culture definitely plays a major role. Now If you see the Hofstede's Model for accessing cultures, you can well infer that certain cultures are individualistic while others are collectivistic. Indian culture is collectivist while American cult is individualistic. Well, you may ask how can I say this with conviction.

Let me take a simple example. If you listen to Western music, it has individualistic orientation. If you hear the lyrics of the song in the video, you can figure out the fact that people in US or UK beleive in being solitary and fight the battle of life alone. As such, people prefer to listen to music that reflects individualism and and to some extent rebellion. Hence, socio-cultural environment of people determines their taste even in music and this is what marketers need to tap on.

The crux of this post is to tell that socio-cultural environment plays a vital role in determining buyers' buying behavior. As such, marketers must not ignore the cultural patterns of their target segments.

What's Paramount ?

I was reading a magazine on marketing a few days back and I came across an article on Paramount arlines. I have heard of this player in the airline industry and could even recognize its blue signature color, but what I didnt know was that it caters to only the premium segment. It only serves the business class and has no provision for economy class at all.

Well, this strategy may be the USP of the brand as none of its competitors has ever served just the business class. The USP of a brand helps attain the competitive advantage that is sustainable (Sustainable Competitive Advantage). Of course, this unique targeting of business consumers has given the airlines an edge, which is evident from the fact that the Paramount airlines has captured 27% market share in Southern Indian within a span of less than 3years. The airlines has ambitious plans to extend its services to north and north east India. Also, the airlines plans to go international after 2011, when it completes 5years of operation in the domestic market.

As such, Paramount has sucessfully been able to use its unique targeting strategy as its USP, but I guess the utility of this strategy is subjective than being objective. When the market was booming and economy was doing well, Paramount could have expected to extract the maximum out of its space or seat utility. But in times of recession, when the companies are into cost cutting, even the executives who are the target customers of Paramount airlines may travel in economy class.

Airlines sector is the one which is most badly hit by recession. The giants like Kingfisher and Air India have suffered huge losses. Kingfisher is trying to compensate for its losses through its low cost variant, Kingfisher Red and even Air India is seriously considering revision of its pricing policies.

As such, the unique targeting isn't a USP of Paramount airlines as USP helps you gain long term advantages, which hasn't been the case. USP isn't subject to subjectivity, rather it is objective which helps a brand to get out of adversities by differentiating from the competition.

When companies build brands, there are several criteria that must be kept in mind. The brand elements and associations must have six elements including memorability, meaningfulness, likability, tranferabilty, adaptability and protectability. The first three elements are offensive in nature and help in building brand equity while the latter three are defensive that help in maintaining brand equity.

I guess the offensive criteria for brand building are in place for Paramount which is evident from its growth figures, but I really suspect the defensive critera. The brand lacks the elements of tranferabilty and adaptability in the gross era of recession. I think Paramount airlines has missed on this Paramount part of a successful business strategy.

Let us just wait and watch and see how Paramount countinues to grow or move towards downfall.

Value Added Services or only Value ?

The telecom services providers are pondering over ways to enhance sales and market share in the Indian market with intense competition. The number of players is increasing with two new players namely Virgin and Aircel. How does the players in this industry strategize so as to attain their objectives?

These companies are resorting to various means in order to gain market share. Vodafone came up with the much hyped Zoozoo campaign while Idea came up with a new idea during the IPL season 2 (Click here for more details). All these companies are now trying to sell their Value Added Services or VAS.

Well, I really don't think that it's a great strategy to promote VAS now, when the world economy is hit by recession. The common people are struggling to avert receiving pink slips. Analysts are working hard to speculate the after math of recession. As such, there is a lot of uncertainity around and the entire financial structure of the country isn't in great health.

As such, who cares about getting beauty tips or cricket scores? The masses now want to stay connected in the cheapest possible rates with absolutely no inclination towards any kind of value added services. They rather want value for money.

In this context, the attempts of several players is laudable. Airtel, which is positioned around knitting relationships, lowered its STD tariffs some time back. Virgin mobile, which is the fastest growing mobile operator has further lowered the STD and local call rates to 50paise per minute.

Well, I think revising the pricing strtegies is the need of the hour and not VAS. Let us see how these VAS providers and promoters fare against those who could feel the pulse of customers based on heinous market scenario.