With the rupee depreciating in value against the dollar, what is the one trend you would predict ahead in Indian marketing?
_ Jahnavi Sinha, Kolkata
Jahnavi, you make me think. If I were to correlate the rupee depreciation to marketing in India, and extricate one trend from my trendspotter’s hat, it would be the one that is all about the great big ‘
Decades ago we had a Vidharba movement wherein the retail trade in certain parts of the country decided to stock only Indian brands. The logic at that point of time was a certain degree of jingoism that said “be Indian and buy Indian”.
Now, when I foresee the trend ahead, expect this to happen for a different reason altogether. Expect this clarion call to go out, spurred on by Indian brands with absolutely no overseas brand connections, to ask for a movement in which there is just no repatriation of profits to an overseas entity. The idea is a simple one. The current account deficit (CAD) situation is precarious. In such an era, expect a movement where Indian brands may just want to encourage you to franchise them and them alone, rather than brands which help “worsen” the CAD situation.
Expect this to be a movement that will start slow and gain momentum slowly, though. Because, do remember, we live in 2013 and not 1983.
I am told India will soon see a burger which will cost $10 or Rs. 650. Will this fly?
_ Somesh Sampath, Erode.
Somesh, markets evolve over time. India is still at the bottom-of-the-pyramid in terms of its evolution in the space of QSRs. A Rs 650 burger through a QSR is a tough call.
I categorise markets differently. Right at the top of the pyramid is the hyper-developed market, like Japan, and some parts of continental Europe. This includes parts of countries such as France, Norway, Sweden and Finland as well. And just below that on the pyramid of development are the developed markets – the US, the UK and more. And then there are the emerging markets like India. And finally at the bottom of the pyramid is the submerged market, like parts of Africa. A burger at Rs 650 is really all about its superior packaging rather than just product alone. Luxury packaging works best in the markets like Japan, Sweden, Finland and Norway. Not in India. When the packaging cost of a Rs 650 burger itself is all of Rs 300, there is something wrong in the fundamentals of consumption. Indian consumers are savvy and very, very fundamental in their approach to food and its packaging. Packaging is something that is thrown away, and consumers out in India do not wish to invest hard-earned money in such packaging. Consumers are loath to even think that they are being charged for such packaging.
I see this kind of a launch to be totally anecdotal. Yes, it might work as a limited edition on World Luxury Day, but no more.
I would give such a burger at Rs 650 a total thumbs-down! Don't even attempt it. Wait till we mature to be a less-thinking and less-intelligent marketing economy than we are. Be patient. Wait those twenty years out.
Markets and consumers change at a frenetic pace. How fast must marketing change?
_ S. S. Rohit, New Delhi
Rohit, the ultimate reality of all life (business and personal) is change. Market-related strategies that touch consumers need to undergo change faster today than in the past. The new generation of consumers who interact with, negotiate, buy and use products and services alike, are a different breed altogether. Change is the constant. The one and only constant. This is the day and age of ‘brand loyalty’ getting dumped in the dustbin as consumers pick up ‘Brand Promiscuity’ skins to wear. Marketers need to, therefore, be amoebic in their marketing approaches. To do this, one needs to understand consumers deeply. Garnering consumer insight, literally on a month-to-month basis is the imperative that will keep marketers ahead of others today.
Harish Bijoor is a business strategy specialist and CEO, Harish Bijoor Consults Inc. askharishbijoor@gmail.com