MARKETING to the AFFLUENT Brands Are Leaving No Stone Unturned in Their Quest to Attract This Consumer Group

PRESENTS MARKETING TO THE AFFLUENT Brands are leaving no stone unturned in their quest to attract this consumer group. An analysis. A SPECIAL REPORT BY AFAQS! REPORTER

41 IMAGE COURTESY PHOTOLIBRARY INDIAÊS AFFLUENT SPECIAL REPORT

DISCOVERING THE AFFLUENT PHOTOGRAPH COURTESY: IMAGESBAZAAR.COM They come in varied shapes, sizes and style quotients. Successful entrepreneurs, senior executives, rich farmers or generations of rich families. How do marketers view the affluent consumer? By Narayan Iyer

onsumers in India have Spendings reveal that, for the first CHANGING COLOURS dramatically. always been pretty tricky time, Indian households with high he affluent Indian consumers If earlier, the notion of these Cto double-guess. And incomes outnumbered those in the Thave evolved over the years. consumers was that of the scions of business continues to struggle low category at the end of 2009-10. They are those who have a large the royalty, old Indian business with defining target markets Today, India has 46.7 million high amount of wealth and spending families or film stars; the list now based on the most logical meas- income households compared to 41 power, which is most likely to be also includes entrepreneurs, farmers, ure - household income. million in the low income category. reflected in their high-income pro- employees in large organisations, Experts have their own definition In another study (Capgemini- file. In 2006, when The Knowledge and they qualify this with labels like Merrill Lynch World Wealth Report Company (a division of Technopak super-rich, rich, middle, lower 2010), there are 1.3 lakh dollar-high- Advisors) produced the first compre- middle or strivers, consuming class, net-worth individuals in India hensive study on trends in Indian aspirers or affluent, top end of the compared to less than 25,000 a luxury, it pegged 1.6 million market or mid-market and so on. decade ago. These are individuals affluent/rich households in These labels, instead of reassuring, who have in excess of $1 million as India. In 2009, the Nielsen often leave one feeling even more investible surplus annually. UMAR (upper middle and anxious. Such classifications are However, the NCAER findings rich) report put a figure of 2.6 hotly debated or accepted with a classifies households earning over Rs million to households with Unlike affluence, sceptical shrug. 1.8 lakh a year (under 2001-2 base monthly incomes of over Rs luxury is more of an The prime reason leading to price) in the high income category. It 40,000. guesses about the consumer’s class is is in this paradox that the Indian “When we set out on indulgence than a that private wealth creation in India affluent reside. estimating the number of new necessity. Though luxury has accelerated rapidly. If the Says Santosh Desai, managing super-rich households, we economic reforms of the ’90s director and CEO, Futurebrands defined households with an has never been easy to unleashed the pent-up energy of India, “The heterogeneity of the annual income of Rs 40 lakh define, the elusiveness India’s entrepreneurs, the past Indian consumer makes it difficult or more,” says Arvind decade has seen rapid growth of the for marketers to slot a single group as Singhal, chairman, and concept of mystery is affluent class. affluent. A farmer buying a high-end Technopak Advisors. In a The recent National Council of truck is perhaps more affluent than a span of less than five years highly desired amongst Applied Economic Research city slick senior management staff in the stereotype of the affluent luxury consumers. (NCAER) report on Earnings and a large organisation.” class has changed

42 afaqs! Reporter, August 16-31, 2010 SEIL REPORT SPECIAL

PRESENTS

traders - both retail and wholesale, education, geography or health, but THE NEW MARKET DYNAMICS agricultural commodity traders, the ability to splurge good money contractors and professionals such as over good and bad products alike, lawyers and doctors. distinguishes them,” says Harish Geographically too, the Indian Bijoor, CEO, Harish Bijoor urban growth story that until now Consults. Mumbai, Û Metros was driven largely by metros, is now To some, it also means lavishness, Kolkata, Delhi, moving beyond, into smaller towns comfort, opulence, sumptuousness, Chennai, Bengaluru, where the affluent profile is fast or even extravagance. It is these Hyderabad emerging. “The growing affluence varying factors that are making levels, increased awareness due to marketers, advertisers and brand Û Key Urban Towns media penetration, improved managers alike warm up and reach Pune, Chandigarh, Jaipur, connectivity and significant changes out to this consumer class. Ahmedabad, Lucknow, Ludhiana, in consumption patterns with high Cochin, Vijayawada, Visakhapatnam, Nagpur, aspiration levels of small-town India FINDING THE AFFLUENT Patna, Surat, Coimbatore, Jamshedpur, Amritsar, Trivandrum, Nasik, Bhopal, Indore, are compelling marketers to take here has been a gradual Vadodara, Kanpur, Madurai notice of a new affluent class,” says Tincrease in spending power Ashok Rajgopal, partner, media and which has moved from the metros Û Rest of urban entertainment, Ernst & Young. to the satellite towns around them, Aurangabad, Allahabad, Gwalior, Jodhpur, Raipur, India: Urban The one commonality, across the over the years. Now it is going fur- Bhubaneshwar, Goa, Pondicherry, Aligarh, Moradabad, cities other class of affluent, that emerges is that ther, and the demands of Rohtak, Rourkela, Udaipur, Anand, Faizabad, Hassan, than rural these are people who are financially consumers here are different. “The Shimla, Roorkee, Shillong India well-enabled. “They may have sale of luxury goods beyond the lacunae in many other areas such as top 15 cities including the metros Source: Ernst & Young, The New Market Shehers Report

RICH PICKINGS THE HIGH INCOME FAMILIES “To be affluent in today’s world is Figures in Â000 Figures in Rs not to indulge; it is 150 150

to do with living better, convenient, smart 120 and realising years of aspirations.” 100 SANTOSH DESAI, 90

MD AND CEO, FUTUREBRANDS INDIA 60 50

30 Below 40,000 to Above 84 126.7 “The high end of affluent are forever 40,000 1,80,000 1,80,000 0 0 peripatetic souls who travel a lot, buy a lot, 2008 2009 eat very little, savour the best things of life Û In India, the HNWI population grew Û In 2001-02, the number of high and do most of their eating with their eyes 50.9% in 2009. income families was only 13.8 million Û India also has a relatively high Û 62% of Indian households belong to rather than with their mouths.” market-cap-to-GDP ratio raising the the middle class that comprises the HARISH BIJOOR, HNI population affluent at the top end CEO, HARISH BIJOOR CONSULTS Source: Capgemini-Merrill Lynch, World Wealth Report 2010 Source: NCAER, Earnings and Spendings report, 2010 is an indicator of the shift in afflu- those places, is creating the spurt in ent buyer destination,” feels Desai. consumption. “Marketers should stimulate desire Consider Aurangabad, the city in About 22 key urban towns are the ‘backward’ region of growing and getting bigger and more and capture the now rapidly increasing Marathwada, better known for its affluent according to the Indian spending potential of the affluent in India poverty, acute water shortage and Consumer Spectrum of Urban India with a sharper focus across segments.” lack of industrial development. In Report by Indicus Analytics, a April this year, it managed to make research firm. ARVIND SINGHAL, many marketers take note of the Marketers are chasing the CHAIRMAN, TECHNOPAK ADVISORS city when 115 individuals placed growing number of affluent in the orders for new Mercedes cars. rest of India because of the potential “From a marketer’s standpoint, and the need to tap this segment. “A various things are happening. study of 100 cities’ consumption “Growing affluence levels and increased Affluence levels are going up, spending by us shows that metros awareness is due to media penetration, connectivity to smaller towns has constitute about 30 per cent of the become better, logistics are total consumption market,” says improved physical connectivity and significant improving and organised retail is Laveesh Bhandari, director of changes in consumption patterns.” growing much faster in key urban Indicus. This indicates that the key ASHOK RAJGOPAL, towns and smaller towns,” says urban towns, the rest of urban India Rajgopal. This has led to a situation and rural India together garner PARTNER, MEDIA AND ENTERTAINMENT, where affluence combined with the almost 70 per cent. Given the large ERNST & YOUNG availability of products or at least a consumer base of these markets, an means to get those products out to increase in share of relevant

afaqs! Reporter, August 16-31, 2010 4 3 PRESENTS

consumers would imply larger the target market, as it will allow In India, the diversity was target audience. While the realities of SPECIAL REPORT numbers being added in these them to communicate better with astounding. In Bhopal, they found the affluent beyond the metros may markets than in the metros. what is fast emerging as the new 213 types and in Vijayawada 171 be different from the urban or metro future market. They also need to types. “This is why marketing in consumer, his expectations and A COMPELLING CASE understand the psychographics of India is regarded much more aspirations are the same. he affluent tend to be very this target class and their attitudes difficult than fighting for pieces of “A marketer has to aim at Tdifferent from those less eco- toward life. market share in the West,” he aspirations, not at realities,” suggests nomically fortunate. “Affluent A few years ago Bijoor's company says. Bijoor. Though the complexities of households tend to have lifestyles did a typecasting exercise across nine With an increase in the sales of pinpointing the affluent will characterised by lesser physical countries to assess how many types LCD televisions and wellness continue to exist, marketers, work, greater expenditure on of people exist in different cities services in smaller towns, companies advertisers and media planners will entertainment, less time spent on (Types were classified by their need to devise innovative strategies. continue to face challenges in day-to-day necessities of house- similar buying behaviour). In New “Advertising could also be different reaching out to this class. What is hold chores and occupation,” York, they found 14 different types of and may need to use local clear and evident is the need to focus explains Singhal. people. In Boston, they found nine references,” suggests Desai, on innovative ways to be relevant to Marketers need this lens to view and in Tokyo 11. identifying strategies to reach this this growing target group. RIGHTINDIAÊS AFFLUENT WORD, RIGHT TIME

Communicating to the affluent should neither be too overt nor too covert. Striking the right balance will achieve the goal. By Narayan Iyer omeone truly said that the rich are different from most of us Sbecause they have the money. But the rich are unlike each other too. Savvy marketers know that finding this difference is the key to success in marketing to them. The language for the affluent is different from what is used in most mass communication. Moreover, sophisticated and affluent buyers do not have the time to shop and negotiate as they did when they were building their fortunes, which makes it important for marketers to perfect their communication. Affluent consumers are becoming increasingly selective about products. Media channels that allow PHOTOGRAPH COURTESY: IMAGESBAZAAR.COM companies to communicate with consumers are growing in diversity wealth. “They are demanding and “Every affluent brand has a certain affluent brand. and reach. The result is that prefer to buy brands with a belief and ideology. It also speaks a Creativity plays a key role in marketers are increasingly focussing reputation for quality and stick with certain language,” says Prasoon Joshi, creating an affluent image. Many on differentiating their products and them once they find the right fit,” executive chairman, McCann affluent brands achieve authority as a communicating their values to says Prathap Suthan, national Erickson, India. Thus, when adver- result of the creative talent of their potential customers. creative director, Cheil tising an affluent brand, it is the design teams who respect the brand Marketing to the rich should be Communications India. Buying for brand’s attributes that are key. “You heritage and yet continuously about creating salience that will get value or price (sometimes both) they will never find the price tag in a reinvent it. Says Ashish Chordia, allure and buzz. “When I was at look for experiences that will enrich Rolex watch ad. You will find that director, Porsche India, “For us, the Amex, we did an event with their lifestyle. The brand proposition they have a new model and the loca- potential buyer is a person who Abhishek Bachchan in Goa creating is as important as the product. The tion of the store where you can pick wants a car that is high on luxury, innovation and freshness that gave affluent buyer will spend on an it and no more,” explains Suthan. performs at par with a sports car and customers something to talk about,” expensive watch, as long as it is a It is true that affluent brands are is sporty for driver and passengers recounts Amit Dutta, managing brand he associates with. often confused with luxury brands. alike.” Porsche follows a strong director, Luxury Hues and CEO, Though there seems to be a thin line direct communication policy with its Luxury Marketing Council of India. BRAND POSITIONING separating the two, in reality the customers and prospects with high Affluent buyers value their rand-building is a different ball- difference is stark. A luxury brand is quality, updates on new products that anonymity and don’t flaunt their Bgame in case of affluent goods. to be flashed and flaunted, unlike an are sent personally.

44 afaqs! Reporter, August 16-31, 2 0 1 0

SPECIAL REPORT the humanemotionsassociatedwith logo ormentioningit,itgenerated when theyarrived.Without placinga strategy fortheaffluent. prospects. chosen fromalistof100(notbased brand managedtostrikeachordwith have it,”recollectsPadamsee. The the auraamongstthosewhodidnot the guestshadbagswiththem holding apartywherefewamongst when lookingatacommunication by increasingtheexclusivityquotient Alyque Padamsee. Thiscanbebuilt appeal,” sayslegendaryadman, exemplify exclusivity, valueandsnob the brandneedstoexistforit to attracttheaffluent.“Theauraof communication techniqueadopted that,” saysJoshi.The and CEO, ICICIBank.Whilethe on one’sabilitytopay)like-minded sure thattheprospectivebuyerwas the targetandmanyaskedforitlater. brand managedtocreateaffluenceby I for ahigh-techgadgetwillbestarkly the brand,nomediumisbiggerthan price andlookforbuyerswhoshare instance, willhaveattributesbeyond them feeltheiraffluence. enjoy servicesandbenefitsthatmake customers, privatebankingclients suit willbethesameacrossbanking basic bankingandfinanceproduct close-knit community. Any “The affluentareawell-connected, hospitality service. different fromsayafinancialor apartments inBengaluru,itmade Developers created11exclusive certain similarities.WhenMantri Chanda Kochar, managingdirector “The premiumprivatebanking needs tobeconsistentanduniform. to themainICICIBank,” says different brandattributescompared services offeredbyusespouse create thathaloaroundtheirbrand t isatoughcallformarketersto “Deep down,ifyouunderstand “Some yearsagoapremiumbag A high-endluxuryhome,for The communicationexperience STRAIGHT TALK traditional ways,communicating consumers ininnovativeandnon- reach theaffluent,oneneedsto satisfies theiremotiveneeds. how theexperienceabrandprovides programme thatspeakstothese develop agoodpublicrelations contact,” stressesChordia. select screeningorameetingwith to capitaliseonothermeans-say, a This createsthebuzz,whichneeds line, plannedtosuitwhatneedsbe cocktail ordinnertableconversation, communication thatcanturnintoa prospects isourpreferredmodeof which thebrandappears, the exclusivity. “The moviesin the brandambassadorstomaintain will bebothaboveandbelow-the- consumer type,thecommunication “Whatever thebrandand officer andchairman,BBDOIndia, suggests Suthan. achieves thetaskofreachingthem,” sorts ofthings,includingfoodand as havingtheirpreferencesforall relish inconspicuousserviceaswell sector identifiesthatfrequentguests better. For instance,thehospitality and recommendationsdothetrick amongst theaffluent.Testimonials marketing hasahugefanfollowing communication withcustomersand rises, exclusivitygoesuptoo.“Direct More oftenthannot,astheaffluence endorse thebrandmustalsobe celebrities andpopiconswho communicated.” Specialeventsand drink rememberedbyhotelstaff. selected carefully,” warnsPadamsee. other publicrelationseffortsmustbe instance, themagazinesselectedfor desired imageofthebrand.For carefully coordinatedtoconveythe advertising afashionbrandareoften is thekindofpeoplewhoreadthem, unconventional andtrend-setting.It catching upisin-film placement. not thenumbers,whichmatter. For successfulcommunicationto It isforthisreasonthatsocial Says JosyPaul, chiefcreative A newmediumthatisfast Inputs byAnkitBhatnagar “Affluent shoppersflocktoselect brands not careful aboutbrandpositioningand because theservicethesebrandsprovide adds valuetotheshoppinge because theydon’tcareabout pricebut heritage whentargetingtheaffluent.” “The affluentspaceis competitivebut, PRASOON JOSHI,EXECUTIVECHAIRMAN, not yetcrowded,sooneneedstobe NATIONAL CREATIVEDIRECTOR, CHEIL COMMUNICATIONSINDIA MCCANN ERICKSON,INDIA PRATHAP SUTHAN, tricky ifacommunicationexperimentfails.It “The brandattributesneedtobewellunder- reaching out.Ifoneofthemtweetsabouta including advertisements,aresubtleandat product andisfollowedby500people,the stood andnotcompromisedordiluted.It’s “Social mediacouldbeharnessedwell for AMIT DUTTA,MD,LUXURYHUESANDCEO, JOSY PAUL,CHIEFCREATIVEOFFICERAND LUXURY MARKETINGCOUNCILOFINDIA has adverseimpactonthebrand.” xperience.” marketing isautomaticallydone.” successful andthediscerning.” “Most ofourcommunications, all timescatchtheeyeof DIRECTOR, PORSCHEINDIA CHAIRMAN, BBDOINDIA ASHISH CHORDIA, SPECIAL REPORT PRESENTS The writer is President, BMW Also, with our enhanced product To reiterate the focus of the reiterate the focus To environment is another. There are environment is another. with the brand in an exclusive Cup International across 10 cities and the BMW Art Cars exhibition, Mumbai. Conceptualising the BMW Studio at Janpath, Delhi as a venue where our customers can indulge three weeks or three years old, it is three weeks or three machine.’ still the ‘ultimate driving portfolio we have engaged with our customers and prospects in innovative dialogues to ensure that the brand affinity transforms into product ownership. There have been initiatives such as the BMW Golf held at the Jahangir Art Gallery in quality. So whether your BMW is quality. brand, we have adopted communication of the rich heritage of BMW Eras through association also formal dining and wine-tasting events at leading BMW dealerships across India. with leading fashion designers and events such as the India Couture us, if actions submit to the For Week. values recognised as being ‘on- decision-making, enabling the decision-making, enabling ambitions. does it deny BMW opportunities. it serves as a framework for Rather, business to feel confident that all its operational decisions are building the brand towards its long-term brand’, it will cumulatively build the organisation’s desired long-term reputation. If not, we appreciate that go with the and we won’t stands for, idea, however compelling it is. This doesn’t mean the brand is rigid, nor it risks fragmenting what our brand By ANDREAS SCHAAF This year, we plan to introduce This year, BMW customers and also offer which will function as a non- banking finance company once it gets the necessary regulatory clearances. This divison will offer Everything about a BMW says insurance solutions to its customers We through its cooperation partner. solutions for Retail Financing for solutions for Retail Financing BMW Financial Services India, BMW Financial also plan to introduce a pre-owned of car business with the launch Selection in India. BMW Premium COMMENT And this is exactly how we BMW India will further expand setting up BMW dealerships of the luxury claim which we convey not do with each of our vehicles. We make compromises. This has been our strategy in India, where we currently have 16 BMW dealer facilities. As we embark on the next phase of our dealer network strategy, operations by establishing its presence in 10 more cities. supplier of luxury products and We services for individual mobility. India, we set a decisive course by always concentrate on our strengths and thus on the implementation of international standards across all have set very high metros. We standards in service quality and customer care in India, which meet the expectations of our customers. position ourselves to redefine luxury, focusing on individuals, recognising future challenges, promoting being the leading and creativity, DRIVING IN STYLE IN DRIVING

or BMW, business is directed business or BMW, that by a clear value system actions.guides management Why BMW India is the No. 1 in the luxury car segment in India and how it manages to portray a symbol of dynamism. to portray a symbol of segment in India and how it manages is the No. 1 in the luxury car Why BMW India

At BMW India, we decided to BMW India, At Our strategy has been to embark success. These qualities enabled us to weather stormy conditions and strengths and anticipate the challenges of the market, novel solutions the future belongs to India. If you want to benefit from the dynamics of you need to the Indian market later, we did. We This is what act today. were prepared to meet the challenges head-on to ensure our company’s continue to invest in our future. We pioneering, between quick results due to short-term actions and the not do. If you concentrate on your levels seeking new business opportunities. As pioneers in bringing luxurious dealerships to stand our ground in a fiercely competitive environment with new ideas and the strength to promote our new products. In absolute terms, high-volume single markets yet. But, sive. It is the difference between ‘being pushed’ and ‘making your own way’, between imitating and lasting success generated by your own strength. how you do it, but also what you do competency-enhancement across all competency-enhancement were able to anticipate trends and that gave us an edge. F India cannot compete with other can be found. The difference is deci- Seen in this light, a distinctive course defines not only what you do and on an aggressive product offensive with rapid market expansion through have We greater customer intimacy. addressed these through INDIAÊS AFFLUENT SPECIAL REPORT REACHING OUT It’s the affluent that media planners are grappling to reach. By Narayan Iyer PHOTOGRAPH COURTESY: IMAGESBAZAAR.COM

s a Mont Blanc customer affluent consumers in the key urban towns Nandini Dias, COO, Lodestar mindset mapping, through credit or a broadband connection hold- (KUT) as well as rest of urban India Universal, “The traditional way of card usage, financial investments and Ier? Is a Tata Safari owner in (ROUI). “Media spends are moving profiling an affluent consumer by lifestyle indicators,” she adds. Rohtak affluent or a technology towards non-metros, with the KUTs demographics, psychographics or company manager driving the and ROUI increasing their share of through SEC classification is passé. IDENTIFYING THE MEDIUM Honda City? This target group is a ad spends and volumes,” says Ashok Now we map by the number and ays Amin Lakhani, head, nightmare for media planners who Rajgopal, partner, Ernst & Young. kind of durables in a household.” Sexchange, Mindshare Media, “I are grappling with getting the right The report pegs KUTs and ROUI to Affluent products are considered by would be cautious and go according mix of medium and media to reach potentially command 40-50 per cent consumers to be those which are to the client’s need before working out to the target. of India’s urban advertising spend. better than the norm, but still out the right media for the product According to the Ernst & Young Unlike brands in the luxury affordable - a plasma TV or a C- and brand to reach its desired target.” report on the New Market Shehers, sector (Bentley or Armani), affluent segment car. “With technology being Take the Tata Sky set-top box. Amin there has been a significant uptake in brands are more easily within the able to map consumption pattern it is recollects the debate revolving the leisure and lifestyle spends on grasp of ordinary consumers. Says now possible to gauge affluence by around this product was largely if it SEIL REPORT SPECIAL

PRESENTS

was for the affluent or not. “To ask Dias. In-film placement of premium someone to spend Rs 4,000-odd on a brands in the recently-launched box and then pay monthly charges to Aisha is an example of using a “The touchpoints for this target segment are watch TV was daunting,” he medium to target the affluent. innumerable as they have access and the recounts. With multiple touchpoints “OOH, too, can reach the affluent in reaching this target, it is important to a very effective way. The placement disposable income to experience it.” get a mix that appeals them. of screens and the streaming targeted NANDINI DIAS, “Imagery is of essence while advertising in recent years has been COO, LODESTAR UNIVERSAL talking to the mass affluent. No very effective,” says Lakhani. “For medium per se can deliver imagery. the super affluent, a credible The aspirational element is best platform for engagement is critical. brought alive through a premium Brands usually work on customised looking TVC or magazine ad which events and media properties to “The mass affluent tend to state they watch is aired in niche channels and large engage this TG,” adds Natrajan. infotainment, music and movie channels in format ads in magazines,” says Sudha English in dipsticks but most of the time is Natrajan, CEO and president, Lintas CUT THE CLUTTER Media Group. The output through dvertisers and media planners spent on cricket, mass channels, this media mix is different for each Aagree that a mix of above the line Hindi/regional movies and news.” product category. When Audi (ATL) and below the line (BTL) launched in India, it mentioned its advertising is what works in good SUDHA NATRAJAN, arrival by detailing showroom dose. For a brand like Samsung that PRESIDENT AND CEO, LINTAS MEDIA GROUP locations. “Most often, a consumer has products for the affluent across looks at a product or a brand, gets geography and class, a combination curious and looks up the net to figure worked well. It adopted road-shows, uses Sachin Tendulkar from time to increasingly gaining advertising from out details on price and location event partnerships in KUTs and time to interact with existing consumer durable manufacturers before getting on to consuming the ROUI for BTL activities, while customers and serious prospects. and high-end FMCG products for its product,” says Lakhani. advertising on mass media. High-end affluent consumers are draw with the non-metro consumer. “Different companies have More and more brands are best targeted by creating When Westside decided to launch its different strategies. For example, looking at celebrity endorsement. environments for them to feel their youth brand, Nuon, it tied up with companies have tied up with “Getting Aamir Khan for the Tata power and exclusivity. “Limited MTV and went for an advertiser magazines like Elle, Cosmopolitan Sky commercial set the brand access to word-of-mouth experience funded programme with them. and Vogue to launch affluent imagery and perception in place for is fairly common with this category,” There are instances when the products catering to women,” says the target,” explains Lakhani. Aviva says Lakhani. But, these are found to communication fails to achieve the work most often with luxury brands, desired results. “Direct mailers are SPREADING OUT where the snob value is more. Since assumed to work with this category, luxury consumers place a high but I have found instances when it A comparison of media spends in metros and other cities premium on heritage and exclusivity has failed to do so,” recounts Dias. Metro KUT ROUI Rural India than the price, it is best left to create The mindset that luxury products are an imagery that fits into this target best advertised in glossy magazines is Consumer durables (appliances) 50 30 NA 20 through BTL initiatives. Traditional also a myth. Mont Blanc and Rolex Consumer durables (electronics) LCD TV 70 30 - - advertising for this class is more a find equal placements in newspapers. Consumer durables (electronics) CRT TV 10 30 30 30 matter of information. “Placing ads The affluent mindset is one that is Branded clothing 65-70 20-25 10 - in niche magazines, airport lounges driven by knowledge (most admit to or duty-free shops tend to work doing a lot of research before a Cars (under Rs 8 lakh) 40 40 20 - better for these products and purchase) and practicality (they look Financial services 40 30 15 15 targets,” adds Lakhani. for value in their purchases and need Women's personal hygiene products 35 30 20 15 One cannot miss out the power of to see the tangible benefits of social media and the internet. With spending more on a product). Two wheelers 20 30 30 20 internet gaming not restricted by any Media planners can play the role barriers, it is interesting to note that of helping the affluent with Û Current Ad spend in the metros may have come down to 40-45% of the national media 50-60 per cent of Bigadda’s information, while reaching out to spend. A large portion of this has moved to KUTs and ROUI. High value product categories registered users are from non- them through their most preferred are still metro dominated, though there is a marginal shift in ad spends to KUT and ROUI. metros. According to the Ernst & media platform. Source: E&Y The New Market Shehers All Figures in %, 2009 Young study, the portal is Inputs by Ankit Bhatnagar MINT, INDIA’S NO.2 BUSINESS PAPER NOW IN AHMEDABAD. With the recently launched Ahmedabad edition, Mint has further strengthened your ability to reach to key decision makers in all top metros. Clearly, advertising with Mint makes complete business sense. Now also available in Gandhinagar, Baroda, Surat and Rajkot. Moreover, 3 out of 4 Mint readers do not read any other business daily. PRESENTS

COMMENT SPECIAL REPORT AN ENGAGING MEDIUM New technology has made the task of marketers that much simpler by selectively reaching the high-end consumers.

ake no mistake. The super Let’s understand the average per cent of his time with newspapers. rich India may just be only Indian who inadvertently consumes Of this additional 43 per cent of M10 per cent of the more 6.5 hours of media every day. In media exposure, 38 per cent of the than a billion population but is big contrast, the affluent Indian interacts increased consumption is due to enough for the world marketers to with media for 9.3 hours. Though internet usage. One could set a rehash their marketing strategies. this may seem to be high, the graph hypothesis here claiming that the Just to get our math right this 10 will indicate the way media is affluent consumer seeks media per cent is more than the population consumed. The affluent Indian still which he can control in terms of of Canada, Australia and France put spends 34 per cent of his time content and preferred time. together! However, numbers just do reading the newspaper but the Taking the story about ever- not tell the true story, especially average Indian spends more than 50 increasing consumption of digital By RAHUL VARMA when guessing potential consumers. Our 2009 media consumption One needs to use this new study throws a lot of light on how EXPOSURE TIME medium of connecting with the the Indian consumer has been using (Daily media consumption patterns) digividuals (digital individuals), not media. For instance, what were the just individuals. New technology has triggers which influenced the 1 hour 26 minutes made the task of marketers that affluent Indian consumer? We found Reading newspapers/magazines much simpler by selectively reaching that they have lapped up new brands, the high-end consumer who still is new products, new technology and 1 hour 59 minutes different in psychographics and last but not the least - the reason for Watching TV/recorded TV programs usage through digital media. The our intellectual power - the zeal to advent of social media and its impact 2hours 16 minutes lap up more knowledge. This zeal is playing a big role with many small Listening to radio/recorded music/podcasts for knowledge has empowered the outfits, no more leaning on affluent Indian to adapt to three 2 hours 2 minutes traditional medium and using the important attributes: product, brand Using Internet for work or personal use social media effectively. and technology. Hence, the Let me now, like an informed relevance of the concept of targeted 1hour 53 minutes researcher, show you two sides of the marketing. After all, one must Email/chat/instant messaging same coin and then leave it on you to remember that ‘no two consumers decipher the right mantra. are the same. Source: PAX Digital Life 2009 across eight countries This is how digital media helps a marketer: media further, here are a few facts • Reach and usage of digital media that may not surprise you at all. is on the rise Morphed Internet usage has further increased • Assured advertisement exposure within 62 per cent of these affluent • Targeting of consumers is more telecom consumers in the last one year and 55 precise devices and per cent of the users claim it would • Innovation at the marketing further increase in the coming times. executives’ finger tips telecom Morphed telecom devices and • Any time is prime time telecom service providers are the • Individualistic consumption and service ones who have got the mantra right. what does the affluent consumer providers are This is further heightened by better consume more than the others internet connectivity through from the digital media the ones who increased broadband services. The • Reading other people's social product development around the network profile page seem to have theme of ‘Pocket Internet’ of Aircel • Reading a blog and commenting says it all. The once-regional player is • Reading customer ratings or got the now the key challenger brand across reviews of products/services mantra right. circles. LG is another example where • Reading online forums or it has integrated the young, discussion groups. enigmatic John Abraham with social The writer is director, networking. Synovate India

This special report has been brought to you by Mint. Mint's unique editorial style and the exclusive partnership with The Wall Street Journal has already made it the staple read of the top-end business decision makers nationally. For details on how your brand can reach the top-end audience that matters, please call Rakesh Shah at +91-9810566654 or email [email protected]