In just 10 years, India has metamorphosed from an inward looking nation to an influential economic power, with more sophisticated, confident consumers, who enjoy high levels of disposable income and a huge range of product choice. The result: a sea change in marketing mindsets. No longer can sellers be merchants seeking the short-term sale. They must be marketers competing for long-term loyalty.
And, as merchants transform into marketers, short-term tactics and 'ad-hocism' are making way for long-term strategic planning. Marketing communications are no longer being seen as expenses, they're considered investments.
Signs of the shift from tactical to strategic are everywhere. One of the most obvious: The disappearance of newspapers and TV ads touting '20% off!' 'Buy now!' 'Buy one, get five free!' Instead, there is true communication highlighting values, personality, and benefits of the brand.
Marketers who were engaging in product-and-feature hard sell are now appealing to the softer nuances of the consumer psyche and emotions in an effort to build long-term relationships with their customers. From petroleum (HP Club's 'It feels good') to banking (Standard Chartered's 'Invest with your eyes closed') to durables (Samsung's 'Life begins with you'), marketers are doing so by selling brand experience instead of brand features. Another sign: the recognition that the 'one-size-fits-all' approach may not be the most beneficial for this diverse market. The cola giants for example, have already announced their intention to battle into rural and semi-rural battlegrounds this year, armed with impressive investment.
Distribution will be strengthened, retailers will increase by 20 per cent, and ad budgets will address communications in India's many local dialects - across mediums.
Interestingly, even the Government is getting in on the act as it reinvests funds from its divestments to brand building activities on behalf of the Oil & Natural Gas Company (ONGC), Indian Petrochemicals Corporation Limited (IPCL), IBP and others. The recently concluded ONCG IPO, India's largest-ever, was over-subscribed in just 10 minutes. Yet interestingly, the communications campaign to promote it was similar to that of FMCG brand building effort.
Extending well beyond the mandatory IPO announcement ads - and goal of driving subscription - the campaign seeks to build the ONGC name into a mega brand over the longer term.The future promises to shine bright on India's marketing endeavors. The 'product and features' marketers may win some short-term battles, but the 'brand building' visionaries will ultimately take the war.