Bharat Patel, chairman of ISA and also chairman of Procter & Gamble Hygiene and Health Care, shared with DNA Money his views on challenges in effective consumer engagement.
Indian Society of Advertisers (ISA), along with World Federation of Advertisers (WFA), are organising the Global Advertiser Conference ‘Effective Consumer Engagement’ in Mumbai. The event would feature keynote sessions from major advertisers such as Unilever, Nokia, Vodafone and Procter & Gamble besides advertising agencies.
Bharat Patel, chairman of ISA and also chairman of Procter & Gamble Hygiene and Health Care, shared with DNA Money his views on challenges in effective consumer engagement.
How fast is the Indian consumer changing because of the retail boom, media multiplicity and change in lifestyles?
Modern retailing (MR) in India is leapfrogging the normal stages of evolution just like telecom and airlines. However, it is not moving as fast mainly because FDI is still not allowed in it and getting lands for stores is an issue and also costly. But MR will change not only the environment in which a consumer buys things but also what and how she buys things.
How challenging has it become for marketers to engage consumers in their communications in such an environment?
The bigger challenge faced by advertisers is not coming out of MR but fragmentation of media with a huge increase in number of vehicles in print, TV and radio and, the dreaded TV remote. Cost of reaching consumer in impactful ways in mass media is increasing and reach and frequency is becoming an issue with media proliferation. The WFA/ISA conference is going to discuss how to impactfully engage consumers and also how to measure impact of this engagement.
What are the learnings from modern retail versus the traditional kiranas for consumer engagement, particularly for FMCG companies?
Modern retail is going to increase consumption as consumers get more choices at competitive prices and experience more pleasant shopping. Shopping is going to be pleasant and will no longer remain a chore as perceived now. From the manufacturer’s point, there will be leading brands in each of the categories because big players will be overwhelmed by the shop’s own brand. Focusing on building brand, so that MR cannot ignore them, becomes even more critical. From in-store perspective, availability and visibility becomes more important because if your brand is not available and visible then it will not sell.
Globally, companies have been tapping virtual communities such as MySpace and Second Life. How effective is online consumer engagement?
Online consumer engagement is important and is growing. Because of relatively low penetration of regular internet use, it is not of much significance at least for mass consumer products segment.
How different is consumer engagement in terms of gender of the customer? What are the insights from your experience in dealing with both?
Consumer engagement for women, especially for housewives, is relatively easy through mass media. On the other hand it’s not as significant in media such as outdoor and internet
Is sampling a better way than traditional advertising for attracting consumers to premium products?
Sampling works for products which have demonstrable and clear superiority over other products in the category. And it works for all kinds of products and not necessarily for premium products unless of course if products are higher priced products and perform better. P&G does sampling of its products like Whisper, Head & Shoulders, Ariel and Pampers extensively because they are the best in their respective categories.
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