MARKETINGMARKETINGDISRUPTIONDISRUPTION

MARKETINGMARKETINGHow will brands woo consumers How will brands woo consumers in the age of discontinuity?in the age of discontinuity?

DISRUPTDISRUPTPresented by Srinivasan K Swamy

February 19, 2010 CII Brand Summit 2010

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The avg American youth spends

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The avg. American youth spends every waking minute - excluding time at school- using smart phones,

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(i e ): they spend over 10 hours a 10 hours a

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dayday using devices to text, talk, browse, interact and

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Kaiser Family Foundation Study of 2009

MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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The avg American youth spends

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The avg. American youth spends every waking minute - excluding time at school- using smart phones,

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(i e ): they spend over 10 hours a 10 hours a

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dayday using devices to text, talk, browse, interact and

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Kaiser Family Foundation Study of 2009*

MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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MTV Studio Insights Study: 2010 on Young IndiaMTV Studio Insights Study: 2010 on Young India--“Recreation Redefined”“Recreation Redefined”

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25,800 minutes /month on ENTERTAINMENT (i e ) over 14 hours/day 60% of their time on

“Recreation Redefined”“Recreation Redefined”

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sum (i.e.) over 14 hours/day - 60% of their time on

internet, Mobile phones, gaming devices, TVChatting (82%) and Social networking (40%)

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is the most popular internet activity.Youth in small and emerging towns are more

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MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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Google emerges as the most preferred

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access to information at 41% .

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Followed by the printmedia (26%) and

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TV (25%)

Source: TCS ‘Web 2.0 Generation’H

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87% of Indian youth like to make a researched h i t 80% i G *

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in th purchase ; as against 80% in Germany.*

71% of youth across all markets agree that the Internet makes choosing a brand easier

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Blogs, review sites and social networking sites are increasingly important in taking

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brand decisions

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*Beta Life Youth Survey

MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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Mirroring the west.Mirroring the west.

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Rise of New Media

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in th Rise of New Media

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MARKETINGMARKETINGity?ity?

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- Mobile Phones

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- Mobile Internet

OOH

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.. And More

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MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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In India: 52 million Internet subscribers for our 200

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52 million Internet subscribers for our 200 million+ households. (i.e.) 1 in 4 households in India have an i t t ti !

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This is expected to grow to become the 3rd largest

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* Global Online Population Forecast, 2008-2013: by Forrester

MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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In India: -Total mobile phone subscribers: 525.15 mil

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p(Dec 2009- TRAI) (i.e.) 44% of our population.

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-Number of users is expected to grow to 1 billion by 2013.*

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market * Cellular Operators Association of India forecast

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MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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In India:

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Mobile internet user numbers grew by 350% th l t 1 t h i

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2 million users.

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* Internet and Mobile Association of India ( IAMAI) and IMRB International.

How

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How

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MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING Rise of New MediaNew Age Customer

Mirroring the west.Mirroring the west.

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Rise of New MediaIndia will lead the New MediaIndia will lead the New Mediae

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India will lead the New Media.India will lead the New Media.

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Technological Advances

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MARKETINGMARKETINGity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING

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Technological Advances

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MARKETINGMARKETING Technological Advancesity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING Technological Advances

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- Convergence of Media.

InternetInternetTiVoTiVo

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IPTVIPTV TVTV

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InternetInternetRadioRadiol bra

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MobileMobile

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MARKETINGMARKETING Technological Advancesity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING Technological Advances

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P it P d t

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MARKETINGMARKETING Technological Advancesity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING Technological Advances

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-New product launches are getting shortened to just six e age

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Number of January 2009 January 2010to nine months of a product life cycle.

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-Consumers are buying more, products are

Number of products/brands in India market

January 2009 January 2010

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machines offering higher value propositions for similar pricing)

LCDs 128 167

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- Unique products are hard to find; All products are “similar” unless they are adequately differentiated by

Refrigerators 264 394

Air conditioners 298 342

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will Marketing inputs in the consumer’s mindAir conditioners 298 342

MARKETINGMARKETING Technological Advancesity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING Technological Advances

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P it Ad ti i

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Undifferentiated Undifferentiated advertising works advertising works

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MeMe--too productstoo products >>>>

on entertaining, not on entertaining, not selling.selling.

Poses aPoses a

AdvertisingAdvertising--The cause for The cause for Parity productsParity products--

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MeMe--too positioning too positioning & communication& communication

Poses a Poses a challenge for challenge for marketersmarketers

y py prather than cure!rather than cure!

How

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How

will

MARKETINGMARKETING Technological Advancesity?ity?

DISRUPTIONDISRUPTIONMARKETINGMARKETING Technological Advances

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New Age CustomerMirroring the west.Mirroring the west.

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Rise of New Media

o g t e esto g t e est

India will lead the New MediaIndia will lead the New Media

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India will lead the New Media.India will lead the New Media.

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Technological AdvancesChallenges are here to stay.Challenges are here to stay.

Consumers must truly be the

Compelling commercial content.

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New thinking is needed to address the emerging issues.

ycentral focus.

How

will

How

will

SOLUTION: ?

MARKETINGMARKETINGDISRUPTIONDISRUPTIONMARKETINGMARKETING

ThankThankYouYou

ThankThank

February 19, 2010 CII Brand Summit 2010