MxMIndia

Tag: BTL

  • How big brands are increasingly taking the experiential route to build a direct connect with the consumer

    BTL is big business

     

    By Anuka Roy

     

    The last time you visited a shopping mall, you would’ve noticed a huge soda can replica has been installed and a few people representing the soda brand are trying to convince you to taste the new drink and give your feedback. Or closer home, a small table of cookies has been laid out for you to taste outside the kirana shop because a popular biscuit brand has come up with an array of new and healthy range of cookies. Brands even organise games and contests in malls and other public places to connect with the consumers. These are few such examples of product promotions that happen these days.

     

    It is not just new or local or small brands which are taking such unconventional path to promote their products. Big brands are increasingly taking this route and spending more on marketing activities which have a direct connection with the consumer and the target audience. These activities are not restricted to food brands or FMCG companies, even the financial sector and automobile sectors have been investing in it for quite some time.

     

    “I think the bevy of experiential marketing have stood up on its own feet. It has a lot more to accomplish and go forward but we know that now it has set a stage that this industry in itself can be self-sustaining and can be called an industry. In the past it used to be that very few brands believed in engagement. They were more looking at reaching out to masses at an economical cost. But the shift is moving in to sustenance relationships with brands,” said Mandeep Malhotra, Founding Partner and CEO, The Social Street about the arrival of BTL or experiential marketing in present scenario.

     

    These on ground promotions and events are known as ‘brand activation’ in marketing lingo. They are unconventional advertising activities, called below the line (BTL) advertising, and in certain companies, have more stakes than popular advertising activities.

     

    “Normally, if I look at an FMCG company it would have 14-15% in BTL but for us it is critical. In our business, you do not have people who keep coming in to your stores just for browsing. They will come in if they have a need for furniture. And, as a brand we are not present in high footfall zones. So, you will not find Godrej Interio stores inside a mall. They are always kept independently outside.  The objective is to ensure that the people who have a need come in there,” says Bedraj Tripathy, AVP, Marketing, Godrej Interio ,  the furniture division of Godrej and Boyce, about the amount that is generally spent on BTL activities.

     

    On the other hand, for the newly launched Himalaya Wellness, the wellness division of the The Himalaya Drug Company, BTL is the only way to go. Speaking about the same, SudheerSrinivas, the Marketing Manager of the company who looks after the wellness division, says, “The importance of retailing for our wellness range is because of many reasons. First, people today can afford and second, they think about their health more than anything today. Third, people have stopped being reactive and started being proactive over their health issues. Earlier when we used to go to a doctor we would spend Rs 50 maximum but today it is minimum of three to four thousand rupees. People today want a solution for their basic health care needs which they can pick it up along with their monthly shopping and they would want to make it a part of their lifestyle. So, BTL is very important for wellness care products.”

     

    Speaking about the sectors which have adapted well or are trying to use BTL advertising to its full potential, Rajesh Grover, Managing Director, Viscomm presents a very interesting view. He says, “Experiential marketing is basically the present and the future. The main reason is that brand spends have decreased, a lot of brands are weary of spending on ATL activities because the future is very uncertain and economy is very uncertain. To connect directly with the consumer experiential is the best kind of platform. I would say across all sectors. There is no specific sector where experiential marketing works. It works wonderfully in the rural segment, FMCG, automobiles, in services, so it is across sectors according to me. The only thing is as we go forward since digital is also becoming a very important platform because of social media and all of that, an integration of experiential and digital is the way forward. Agencies or brand need to focus more on the integration of digital with experiential. Monies have to invest in the right strategies in that space.”

     

    So, what are the activities that are done under BTL? To promote the Tata Sampann low oil absorb besan campaign titled ‘Ab Khao Befiqr’,  the company tied up with top 104 Vadapav stalls in Mumbai. This popular snack is considered unhealthy by some due to amount of oil used for it. “With this activation we wanted to encourage consumers to eat their favourite snacks and indulge without guilt. Tata SampannBesanabsorbs lesser oil as compared to the ordinary Besanand the tie-up enabled the consumers to witness this for themselves. We reached out to around five lakh consumers with this activity,” said the Marketing Head of Tata Chemicals Ltd (Consumer Products Business), SagarBoke.

     

    According to Sevantika Bhandari, Senior VP and Head Marketing, DHFL, as a housing finance company they are always in touch with the consumer. “We interact with the consumer inside his house by the way of our advertising, through digital, television and radio. As soon as he steps out we interact with him on transit medium with hoarding, press and newspapers. When he walks towards a large shopping area or a congregation of people, we engage with him on the ground with our people available in some form or the other undertaking the BTL activity. We engage with him on his mobile. We engage with him at a point of sale of his home with large building projects. So, the idea which is true for all marketers and true for DHFL as well is to engage with the customer wherever he or she is.  We also map all our activities according to that journey,” she says.

     

    But whether companies take the conventional advertising method or they invest in BTL, at the end of the day everyone is concerned with the ROI (return on investment). “The cost of acquisition from a reach point in this business will always be very high. It would not be as economical as a television or a print but then you need to put a balance between just reaching out to a number and really converting that person in to a fan or a consumer of your own product. There are two different objectives which are being met here but CPT (Cost per thousand) will never be achieved as efficiently as it would be on television,” says Malhotra.

     

    “Consumer engagement and brand recall. These are the two most important things for us. There is always a debate between biggest or best – and I can firmly say that we want to be the best. We’re a vibrant and authentic brand, and it comes to life through our product, our communication and really through everything we do. There is certain positivity about us and BTL is the more effective tool to help us with consumer engagement and through this – recall,” says Chaitanya Rele, Vice President, Marketing, Havmor Ice Cream about measuring the success of a BTL campaign.

     

    Even though this kind of marketing is on the rise and in some cases the only way to move forward for certain brands, but can it survive on its own without any help from the mainstream marketing methods or above the line advertising (ATL). Most of the experts are of the opinion that for certain products it can yield good results but that would take time. For the time being, BTL does require a certain push from ATL to be successful.

     

  • With below-the-line gaining a bigger share of ad budgets, a cross-section of the A&M frat on its efficacy

    MxM Monday: Is BTL gaining acceptance as a must-have in a media plan?

     

    By Ananya Saha

     

    Is Below-the-Line (BTL) advertising gaining bigger share of clients’ advertising budgets over the last few years? How innovative has BTL become, and what are the challenges it still faces?

     

    Anwesh Bose, Senior VP, DDB Mudra Max

    BTL has gained prominence over the years and will continue to do so as advertising communication is evolving from a ATL-BTL model to a Through the Line (TTL) model. The lines have blurred between ATL & BTL giving rise to a new phenomena where a medium can take the form of ATL or BTL depending on the need of the communication. The challenge today is for the communication professionals to justify the Return on Investments on any form of media and the pitch will keep getting higher. It is time for the industry to jointly work on a multimedia optimization model that would justify investments.

     

    Narayan Devanathan, SVP, National Planning Head, Dentsu India Group

    That’s a very broad question, but going by overall trends, the answer is probably yes. The more pertinent question, how much bigger is “bigger?” Who is measuring this? How does it differ by category? What all goes into the definition of BTL? For example, with the expansion of modern trade in retail, you’ll obviously see a lot more BTL money being spent on in-store merchandising, POS and promotional campaigns. A second factor affecting expanding BTL investments will likely be the short attention spans and the myriad of choices and screens that consumers interface with today. TV, radio, web and mobile are probably vying for the consumers’ attention simultaneously at all times. But with definitive metrics, the impact of last-mile tactics and campaigns will be a key differentiator between brand success and business success. All this does factor into the fact that, yes, BTL as a share of clients’ ad budgets is seeing an upsurge.

     

    Innovations can happen on three fronts: technology, measurability and the balancing act between strategic and tactical objectives of the campaign.

     

    On the technology front, something like RFID, for example, can turn walking behind a shopping cart into inputs for a shelf-stacking strategy in-store. A combination of GPS, augmented reality and a promotional scheme can turn a mobile phone into a CRM platform. But innovations like these and others depend on the evolution of both marketers and the retail (and other parts of the brand) environment.

     

    Technology can also be the difference between best-case guesstimates and data-driven strategies that reduce wastage of marketing investments.

     

    Finally, marketers have to find ways to close the gap between strategic and tactical goals. If brand-building is a strategic goal, how do you use BTL not just be a one-off tactic or part of promotions but contribute to brand-building?

     

    All said and done, as with ATL, the point of all communications, regardless of medium, is to create stories, conversations and transactions (not always monetary) that people want to engage in. If that perspective is missed, then we will continue to see a “line” and see “below” and “above” this imaginary line that only marketers – not consumers – see.

     

    Nina Jaipuria, EVP and Business Head, Sonic and Nickelodeon India

    Nickelodeon has always believed in the virtues of experiential marketing through on-ground engagements. While TV helps in reaching out to millions of viewers, it allows for only one way-communication. On the other hand, BTL promotions despite the high cost per contact have the potential of making the engagement truly memorable for consumers. There is nothing that can replace the experience and thrill that kids feel when they meet their favourite Nicktoons Ninja Hattori, Dora, SpongeBob or Keymon in person.

     

    In addition to engaging our young viewers at schools, malls, retail chains etc, we also conduct van activities that helps us reach out to smaller towns and villages in the interiors of India. For example during the launch of Motu-Patlu, we engaged kids in over 30 towns like Lucknow, Kanpur, Allahabad, Varanasi, Agra, Mathura, etc in Uttar Pradesh and Gwalior Khandwa, Indore, Ratlam, Bhopal, Jabalpur, etc in Madhya Pradesh. We often do mall activities to celebrate days and occasions that are important to kids.

     

    At Nickelodeon, we are constantly seeking new and innovative ways of connecting with kids all through the year. In-store promotions and toon visits at retail stores further helps in strengthening our on-ground presence when it comes to merchandize

     

    Brand partnerships also play a very important role in creating unique propositions for designing innovative on-ground programmes. BTL promotions are thus an integral part of our media plan as they enable us to connect with our consumers and give them a ‘Touch. Feel. Play.’ experience. In today’s day and age, it is imperative to be present across multiple touch points and to tangibilize the brand.

     

    Uday Mohan, Executive Director – North, MPG India

    With the increasing fragmentation of the media space it is not enough to just make “contact” with the consumer, but more importantly to “connect” with him. First hand experience of the product/service offering and the customization of it allow this impact extending it to sales as also brand perception. It is here where the relevance of BTL in the overall marketing/media mix is increasingly gaining importance.

     

    BTL is now moving from its earlier perception of basic activation to being an integral part of the consideration set at the media strategy formulation stage itself. FMCG for the mass audience spends even up to 25 percent of their advertising budget, luxury would spend more. Auto, telecom, food outlets also see the merits of BTL as we see more spends and ideas. It is getting very innovative using insights and planning; 3M Scotch-Brite came up with Wash your Bill, where you had the choice of washing dishes over paying the bill, adding a fun twist to the old adage of ‘pay your bill or wash the dishes’. The activation connected with a younger audience, made them use the product, gave immediate gratification, put it up on YouTube and created word-of mouth.

     

    Lack of quality data is a major challenge that BTL faces as there are as yet no set parameters for evaluation. Another challenge is the infrastructure and operational co-ordination required from global and nationalized brands of mass appeal where delivery to target audience becomes an issue. For example even Pepsi in its ‘Open Happiness’ campaign could create the reach because of the use of digital and social, else the cost would go out of hand. BTL activation for a mass brand would require innovative use of the media mix to get the desired effect.

     

    Ambika Sharma, MD & CEO, Pulp Strategy Communications

    There is a definitive shift in perception, below-the-line is media that barrier is fading, it is new media which adds the rich creamy layer to the traditional media plan. Inclusion of BTL in a plan has increased steadily but has seen a stronger spike in the last 2-3 years. It is not in the perfect place that it could be in the consideration set but it is no longer ignored like it used to be a decade ago.

     

    BTL is now increasingly being evaluated and included when developing the mix, for the simple reason that it cannot be ignored, as it is the only media that allows people to experience the product outside of the retail format. Below-the-line activations can be great when done cleverly. The medium provides the freedom to engage with your core consumers and almost always has the potential if designed wisely to be quirky and attention-grabbing.

     

    BTL needs to be carefully considered in the planning process and not as an after thought. A well-thought-out, through-the-line campaign (or 360-degree approach), will always have more impact than one curtailed to a limited approach. This is perhaps the most positive change where in some marketers are consciously choosing BTL within their plan with specific deliverables in mind. This way the plan is tighter knit, and the ROI is richer. This change has reflected in a higher share of voice for activation in the media budget.

     

    Other factors have also contributed, one is what we call the “Ego” slice in the media plan, prominent some time back its the forced fit into the prominent / upmarket ATL mediums because “presence there was a must” at times this ate into the working budget which would have been considered for new media including activation. This is no longer the case. Activation / BTL is holding its own in media plans and gaining its due in media budgets.

     

    Samar Singh Sheikhawat, Senior Vice President - Marketing, United Breweries Ltd

    We do not call it BTL, but refer to it as activation or leveraging. I would say that activation has always been an important part in the UB Group’s marketing intervention. And today it is almost equal to our sponsorship amount. So if we are involved with an event, property or platform, and suppose Rs 50 lakhs as sponsor, we will spend an equal amount in leveraging it or BTL. I would say, it is practically 1:1 for UBL and our portfolio of brands when it comes to the ad pie division of BTL with other media.

     

    I think a lot of things are happening apart from the display being used in this medium. The kind of consumer touchpoints being used, digital and social media is becoming a big thing and is being used increasingly as activation by us. Video mapping, production technologies have improved a lot. There are new techniques we are using from overseas in terms of projections, holograms, video mapping on walls etc. the ways to reaching out to consumer is getting innovative whether it be direct mailers that we do or CRM or get-togethers. The kind of media being used in activations is seeing innovation and substance that is being used in production is getting innovative.

     

    This medium faces challenges in terms of credibility and execution capability. Anything that you do in BTL needs to be relevant to your product, your target audience and to your brands’ positioning. A large part of differentiation in BTL goes towards execution.

     

    Raghu B Viswanath, Founder & Managing Director at Vertebrand Management Consulting

    Media today is fraught with many challenges. While the overall ADEX spends has been growing at a much higher rate than GDP increasingly clients are questioning whether they are getting enough bang for buck they have spent by advertising in media.

     

    Earlier brands focused on getting more eyeballs translating to more awareness on the brand. Since the competition intensity was earlier relatively low mere awareness got translated to purchase. That is not the case today. With increasing competition and very little differentiation, it is important for brands to not just enhance the brand – building efforts on awareness creation, but to go beyond and engage their customers meaningfully. This in turn means that brands need to connect with their customers through as many touch points as possible. So, non-traditional (BTL) lends itself to this two-way communication. The rules of the game is not about seeing or hearing. It is about experiencing the brand with all the senses. Hence, touch feel and other sensorial connects with the brand, is the need of the hour.

     

    For many brands, BTL is becoming a more significant component of their marketing spends (almost equal to ATL). I believe this trend is expected to grow, as brands pursue serious efforts to engage better with their customers.

     

  • The agency has brought in Ravi Narain as Executive Creative Director, Sanjeev Hajela as Sr Vice President, BTL -South West Asian Markets, Vikram Bhardwaj as DGM-Interactive and Saswati Sinha as Head-Human Resources

    New appointments at Cheil SW Asia

    By A Correspondent

     

    Cheil Worldwide SW Asia is on a talent acquisition spree and has announced a series of new appointments across BTL, Creative, Digital, and HR.

     

    Ravi Narain
    Alok Agrawal
    Sanjeev Hajela
    Vikram Bhardwaj
    Saswati Sinha

    The agency has brought in Ravi Narain as Executive Creative Director, Sanjeev Hajela as Sr Vice President, BTL -South West Asian Markets, Vikram Bhardwaj as DGM-Interactive and Saswati Sinha as Head-Human Resources.

     

    Mr Narain joins from Emaar MGF where he was Vice President – Marketing & Design, while Mr Hajela is from DDB Mudra Group where he was President – Retail and Wayfinding business; Mr Bhardwaj moves from ThoughtBuzz India where he was Country Head and Ms Sinha from Evalueserve.

     

    Speaking on the appointments, Alok Agrawal, COO, Cheil WW, SW Asia said: “Cheil India is expanding at a rapid pace and as a fully integrated, one solution agency we offer a great opportunity for growth of talent. With Ravi, Sanjeev, Vikram on board we see more client successes and acquisitions coming our way. Saswati’s joining us also demonstrates the power of brand Cheil even for Human Resource management”.

     

    Mr Narain joins from Emaar MGF where he was Vice President – Marketing & Design. Mr Narain gained tremendous marketing and communications insights during his 5-year experience with Emaar MGF.  He believes that selling real estate after having spent over 17 years of experience in Marketing and Advertising was an immensely growing experience that added phenomenal dimension to his thinking.  As said by an industry veteran, life has come full circle for Narain.

     

    Mr Hajela, a marketing professional with almost two and a half decades of experience joins from from DDB Mudra Group where he was President – Retail and Wayfinding business.  A career that commenced with ITC (tobacco Division) has led Mr Hajela places. Over the years he has had the rare combination of having seen the industry as a client and having learnt materials and their impact on Trade marketing. In the last eleven years he worked in various positions including the Vice president and head of national Sales.

     

    Mr Bhardwaj moves to Cheil from ThoughtBuzz India, a premier Social Media Brand Monitoring Company where he was Country Head. Of late Mr Bhardwaj’s focus has been on making significant contributions to Online Marketing and offering strategies on – Social Media Management & Planning. As a strategic thinker, he enjoys wrapping his head around new media and future trends and opportunities.

     

    Ms Sinha, a veteran Human Resource professional, joins Cheil from Evalueserve. She started her career in the manufacturing industry and moved on to Advertising in 2006 as HR Director to Delhi JWT. Advertising gave the opportunity to hone her skills in managing people without letting go the bottom line. From 2008 till 2010 she went into a consultant mode and worked with different industries. However the lure of advertising proved stronger and she has returned this time albeit at Cheil.