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When the going gets tough, the tough get tactical. Faced with slowing economy and pruned marketing budgets, industry players are now focusing on inexpensive yet smart marketing by going in for a mix of below-the-line (BTL) activities and out-of-home advertising.
N. Chandramouli, CEO, Trust Research Advisory, says, “There has been a gradual shift to below-the-line activities, firstly because above-the-line (ATL) activities are prohibitively expensive.
A full television campaign alone costs anywhere between Rs 10 crore and Rs 12 crore and a 360 degree campaign entails an average investment of anywhere between Rs 20 crore and Rs 25 crore for a single product launch. Also BTL activities ensure greater interface with the consumer and instant feedback.”
ATL communications use the broadcast medium and publish to mass audiences while BTL activities are more focused such as in-store activations and melas.
going rural
With markets moving rural, there is an additional reason to increase the consumer interface. Dhara, from the Mother Dairy stable, with its thrust on tier-II towns, has been spending considerable amount on wall paintings, ‘ mela’ participation and out-of-home advertising. “Almost 75 per cent of our marketing expenditure is spent on below-the-line and out-of-home advertising to gain visibility at the ground level in rural areas, which is where we are predominantly present,” says Dinesh Agrawal, Chief Operating Officer, Dhara.
Out-of-home, which is comparatively an inexpensive mode, stands to gain in times of slowdown.
Infrastructure development thrust in India provides larger potential in terms of available avenues — more roads, buildings, airports, railway stations, markets and malls. According to a FICCI-KPMG report, the OOH sector is projected to grow at 10 per cent over the next five years and touch Rs 28.59 billion by 2016.
Daikin Airconditioning India Pvt Ltd, for one, spends heavily on bill board advertising, with out-of-home accounting for almost 60-70 per cent of their marketing expenditure.
“We are investing in sales men at counters who are trained at the Neemrana factory in Rajasthan.
We have also adopted close to 450 colonies in Delhi-NCR and have put up hoardings on colony gates to spread awareness about our products. This has been replicated in Gujarat and Punjab, too,” says Kanwal Jeet Jawa, Managing Director, Daikin Air-conditioning India Pvt Ltd.
Following a similar logic, LG is increasingly focussing on channels and in-store experience.
“Our stress would not be so on above-the-line communication except for Diwali,” says Saurabh Baisakhiya, Business Head, Air Conditioners, LG India.
consumer interface
Businesses such as Reckitt Benckiser and Panasonic too which were, so far, aggressive on ATL activities have upped their efforts on consumer interface.
“We are increasingly holding programmes with schools and talking to housewives to spread the awareness on health and hygiene,” says Chander Mohan Sethi, Senior Vice-President, South East Asia, Reckitt Benckiser.
In the initial stages of product marketing, word-of-mouth is often relied on.
Panasonic, which recently launched its new range of water purifier and air purifier, is taking this route.
“When a product is launched typically, brands like to market from the base and move closer to the customer, relying more on word-of-mouth.
After a year, we might like to consider launching a television commercial for our new categories,” says Manish Sharma, Managing Director, Consumer Product Division, Panasonic India.
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