The last couple of months have been nothing but tough for companies in India. FMCG sales are down by Rs. 3,800 crore, and consumer durables sales are down by 40%. The auto industry too is affected, but with different intensities across segments.
So companies are trying their best, by going digital / cashless.
And while business is hopeful, brands are panicking – everyone is adapting to this new trend so fast, that it has already become old news for consumers. “Cashless / Digital payment” is already the new clutter.
Here’s what can help your brand.
Step 1: Stop that advertisement release
Releasing a full page advertisement in the newspaper will make top management, investors, and partners happy, but it will do little to boost your sales, simply because your entire finance, logistics, and distribution network isn’t perhaps ready yet. Therefore, choose your media wisely, and cascade your message through targeted channels only to your most critical audiences – company newsletter, SMS, even WhatsApp groups can come in handy.
To add credibility, put up an announcement on your website, and add that link to all outgoing messages in other channels.
Step 2: Create a G-T-M plan
Going cashless will change and challenge many existing practices within your organisation. Hence, treat this new step like a product launch, and prepare a full go-to-market plan. Talk to all stakeholders and see if they are ready to switch to cashless, and also if your infrastructure is ready to handle the estimated boost in new traffic.
Step 3: Prepare a promo plan
It is very likely that by now, your consumers have already tried something from your competitors, and are frustrated with the problems they had to face. Here, your readiness is your biggest differentiator! Come up with promotions that leverage this – bulk promotions, cross-selling, preferred treatment, ready delivery, etc. And while you are at it, go for new partnerships and tie-ups too.
Step 4: Now, release that ad!
But only targeted at geographies where you are ready. With today's tools, most media can be geo-targeted. Explore digital too. After all, the consumers are already there, and they are most ready for digital transactions.
Step 5: Track all your efforts
When a business goes digital, a lot more data becomes available at every stage of the transaction. And at a much shorter lead time too. Wash, rinse, repeat.
Happy New Year!
Got more ideas? Feel free to add in the comments.
Dec 2, 2016
Can Colgate toothpaste go beyond Patanjali?
Leader brands usually find themselves in situations where they are working hard on keeping challengers at bay, instead of looking for new ways to grow. Colgate’s present situation in India seems to be similar.
In 2015-16, Colgate’s market share was 55.7% in toothpastes and 46.2% in toothbrushes. Considering that next 2 players in the market are Hindustan Unilever and Dabur, competition is obviously tough and has deep pockets too. But when newspaper reports start talking about new entrant Patanjali’s herbal toothpaste making a dent at the market leader, you know the battle is being fought for each basis point of market share.
But it shouldn’t be this way.
The oral care market still holds big growth potential!
Per capita toothpaste consumption in India (136 grams) is way lower than China (264 gms) and Brazil (617 gms). And the prices are even lower – providing scope of ‘premiumisation’. Colgate’s own value-added line contributed to just 20% of its sales in FY 2015.
So what has Colgate done to grow?
A lot. Through its ‘Bright Smiles, Bright Futures’ program, it has reached more than 135mn school children across 2mn schools. Its other program ‘Oral Health Month’ benefitted almost 6 million in FY 2016 alone. But these activities are expensive, and involve multiple logistical issues and free giveaways, not to mention the renewed dedication of the entire team year on year.
Are there better ways?
Yes – Using brand strengths
I have always believed that the biggest results come when consumer insights, brand strategy and business goals come together.
Last year, we saw the brand leverage its consumer base through advertising, where mothers talked about their trust for Colgate. But I guess it wasn’t very effective, not because of the ad, but because it didn’t use its biggest strength. Colgate has another franchise more powerful than mothers – dentists. For years, the brand used dentists to claim superiority and preference… Dentists, not mothers!
So let’s use this strength some more, and grow the market!
Consumption in the personal care category generally is habitual – patterns for quantity, purchase, brand choice, etc. are set. Even this brand with all its might has achieved limited success in making people brush twice a day. The Mother’s Trust TV ad, too, talks about not switching from Colgate to other brands - almost suggesting 'hey people, stick to your habits!'
But using dentists could change that, and here’s an idea about it.
The growth potential for toothpaste exists because of low per capita consumption and scope for premiumisation, and dentists can help us drive this growth more than anyone else. All we need to do is drive consumers to dentists.
Consider this.
Indians consume less than 150 grams of toothpaste per capita. That translates to just Rs. 60. In comparison, we spend more on bike servicing (avg. Rs. 150-200 at least twice a year), on haircuts (~Rs. 50 every month), and on mobile phone recharges (monthly ARPU ~Rs. 125).
Using this comparison persuasively can push people to get more involved with oral care. Similar comparisons, if made for preventive oral care versus corrective treatments, can also persuade people to visit their dentists more often. Pushing this further, months in a calendar can be designated as dental check-up months to suggest multiple options in a year – June and December as after-vacation months and being 6 months apart, fit the bill quite well.
Would this work?
Targeting a change in behaviour is tougher than proposing a feel-good idea. But leader brands across categories have taken up causes of all sorts to drive both brand and business metrics. Ariel asks men to ‘Share the Load’ of doing laundry, while Dettol urges mothers not to stop their kids from playing. Surf Excel recently rolled out a TVC where they said prison inmates spend more time in the open than kids. This was part of its ‘Dirt is Good’ campaign.
So yes, it can work wonders.
What do you think?
In 2015-16, Colgate’s market share was 55.7% in toothpastes and 46.2% in toothbrushes. Considering that next 2 players in the market are Hindustan Unilever and Dabur, competition is obviously tough and has deep pockets too. But when newspaper reports start talking about new entrant Patanjali’s herbal toothpaste making a dent at the market leader, you know the battle is being fought for each basis point of market share.
But it shouldn’t be this way.
The oral care market still holds big growth potential!
Per capita toothpaste consumption in India (136 grams) is way lower than China (264 gms) and Brazil (617 gms). And the prices are even lower – providing scope of ‘premiumisation’. Colgate’s own value-added line contributed to just 20% of its sales in FY 2015.
So what has Colgate done to grow?
A lot. Through its ‘Bright Smiles, Bright Futures’ program, it has reached more than 135mn school children across 2mn schools. Its other program ‘Oral Health Month’ benefitted almost 6 million in FY 2016 alone. But these activities are expensive, and involve multiple logistical issues and free giveaways, not to mention the renewed dedication of the entire team year on year.
Are there better ways?
Yes – Using brand strengths
I have always believed that the biggest results come when consumer insights, brand strategy and business goals come together.
Last year, we saw the brand leverage its consumer base through advertising, where mothers talked about their trust for Colgate. But I guess it wasn’t very effective, not because of the ad, but because it didn’t use its biggest strength. Colgate has another franchise more powerful than mothers – dentists. For years, the brand used dentists to claim superiority and preference… Dentists, not mothers!
So let’s use this strength some more, and grow the market!
Consumption in the personal care category generally is habitual – patterns for quantity, purchase, brand choice, etc. are set. Even this brand with all its might has achieved limited success in making people brush twice a day. The Mother’s Trust TV ad, too, talks about not switching from Colgate to other brands - almost suggesting 'hey people, stick to your habits!'
But using dentists could change that, and here’s an idea about it.
The growth potential for toothpaste exists because of low per capita consumption and scope for premiumisation, and dentists can help us drive this growth more than anyone else. All we need to do is drive consumers to dentists.
Consider this.
Indians consume less than 150 grams of toothpaste per capita. That translates to just Rs. 60. In comparison, we spend more on bike servicing (avg. Rs. 150-200 at least twice a year), on haircuts (~Rs. 50 every month), and on mobile phone recharges (monthly ARPU ~Rs. 125).
Using this comparison persuasively can push people to get more involved with oral care. Similar comparisons, if made for preventive oral care versus corrective treatments, can also persuade people to visit their dentists more often. Pushing this further, months in a calendar can be designated as dental check-up months to suggest multiple options in a year – June and December as after-vacation months and being 6 months apart, fit the bill quite well.
Would this work?
Targeting a change in behaviour is tougher than proposing a feel-good idea. But leader brands across categories have taken up causes of all sorts to drive both brand and business metrics. Ariel asks men to ‘Share the Load’ of doing laundry, while Dettol urges mothers not to stop their kids from playing. Surf Excel recently rolled out a TVC where they said prison inmates spend more time in the open than kids. This was part of its ‘Dirt is Good’ campaign.
So yes, it can work wonders.
What do you think?
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