Got Milk? - The Indian Dairy Context.

Saturday, April 14, 2012

What is getting into the Shopper's basket in India.

AaramShop has just released the 2nd State of Online Grocery Shopping Report, which takes a deep dive into the shopper's behavior online when shopping for FMCG / CPG brands. The unique report is not based on a sample survey but on the authentic buyer data on the hybrid platform - the consumers shop online via the 1900 AaramShops (neighborhood retailers) across India.

The report can be downloaded in full from here, however some of the significant & unique aspects are worth highlighting and one of them relates to what is being shopped. 

While the men have averaged a spend of Rs. 580/- and the women have averaged Rs. 552/- when shopping online what is significant is that 30% of the expenditure of an online shopper in India is restricted to two categories - "Rice, Atta, Lentils & Dals" (16.81%) and on "Edible Oils" (13.70%)

Tuesday, April 3, 2012

Where tomorrow‘s customers will place their trust.

One thing is clear: mass marketing has had its day. For decades people have consumed what they learned about through the constant barrage of advertising – and what was available in the shops. Retailers stripped their shelves of everything that only sold occasionally, in order to free up valuable shelf space for the real top sellers.

That is all in the past. In the new online economy of the “long tail”, providers increasingly earn their money with niche products. Thanks to limited costs for storage and for the “showroom”, it is well worth their while to offer the unusual and the quirky as well.

Consumers like niches. They no longer want to be one of the masses; they want to own things that are rare and unusual. Small groups of aficionados grow up – “social networks”, which replace the mainstream as a peer group.

These networks take over the job of communication. Information about “cool” new offers travels round in no time. Providers who want to be noticed in increasingly fragmented markets must therefore make themselves visible in these circles.

The explosion of choice makes heavy demands on consumers. To reduce the flood of information, they go along with a calculated risk: they trust the recommendations and tips of others. They increasingly take decisions for emotional rather than objective, factual reasons.

The Story of Unstoring.

The enD of The ShoP AS We KnoW iT !

One of the first products to be sold on the Internet was a pizza. That was in 1994 and the provider was an international restaurant chain called Pizza Hut. One year later Jeff Bezos took up the idea of online retailing. He started by selling books online on amazon. com. The sales channel faced a wall of scepticism. Who in the world would order books online when they could buy them in a shop? Fifteen years later the answer is clear: lots of people, and more every day. A comparatively young trio of Apple, Google and Amazon are in the process of forcing 500 years of printing and its distribution channels to adopt new business models. This development is already in full swing in the music industry and has the potential to turn conventional retail upside down. The triumphal advance of the Internet and e-commerce is changing the way in which the world gets its information, exchanges views and ideas, and shops. There is no sign that this momentum is about to change. The launch of user-friendly Internet browsers in the mid-1990s triggered the race for ever cheaper and more powerful terminals; since then, the story of retailing has been an ongoing process of steady revision. Bypassing the shop.

Unstoring denotes a development that short-circuits the classic retailer. It is a future that could render shops superfluous – if they refuse to change. The reality is that digital technologies are increasingly part of the real world. The clear distinction between online and offline, between virtual and real, is blurring as the two universes merge. But what will happen to conventional shops when more people use the (virtual) pixel shopping cart than the conventional (real) wire cart? When sales migrate off the retail floor, it is time to reinvent the retail store.

Facebook Considers Adding The Hate Button.

Just imagine the impact on your brand's Facebook centered marketing strategy if you have more "hates" than "likes" on your brand's timeline. 

When the original Like button was announced, Mark Zuckerberg made a bold prediction there would be over 1 billion Likes across the web in just the first 24 hours. Sources at Facebook say Mark is estimating 2 billion Hates on the first day. Facebook studies have shown the sad fact that people hate things on the Internet more than they like things. There’s also an internal debate on whether the new button should be called “Hate” or “Dislike.”

Since the tiny Like button makes up such a huge part of Facebook’s revenue, the introduction of the Hate button could raise Facebook’s valuation further ahead of the IPO.

If FB decides to add the button, then personally I think "dislike" has a better ring to it than "hate".

Read more about the possibilities of hate button here

Sunday, April 1, 2012

Saving Abandoned Brand Mobile Apps.

There’s a graveyard of brand apps that were a little more than a flash in the pan in terms of repeat usage from consumers. And the reason for this is simple. The majority of brand apps serve little or no utility at all to users.

The key, unsurprisingly, is making apps that are based more on long-term utility rather than campaign one-offs. The tradeoff is that true brand platforms require a mix of departments while most brand apps originate from marketing departments and are geared to specific campaigns.

“Utility apps have broken the path for the app world,” said Yvonne Caravia, chief experience officer for Mobients, a mobile design and strategy agency. “People who are on the go want to get stuff done quickly, and having a branded app that provides some sort of utility is a good way to get them coming back over and over again.

A study by Localytics found that just one in four mobile apps are never used again after being downloaded. The same study also found that 26 percent of apps aren’t used more than once.

Tuesday, March 20, 2012

5 + 1 Huge Digital Marketing Trends You Can’t Afford to Ignore

"Digital marketing is a discipline in flux", says . We face an onslaught of shiny new technologies and platforms that promise to “change everything.” Marketers are creating similarly breathless headlines, proclaiming the next revolutionary devices/apps/social networks.

Yet, even smart marketers don’t know what changes the future will bring; but they do need to be aware that their industry is changing every day. For instance, to reach consumers marketers need to be increasingly mobile, engaging, relevant and aware of the contexts in which we currently operate. 

Here are five digital marketing trends as identified by

1. Location Services
2. New Ad Formats
3. User-Generated Curation
4. Advertise by Format
5. Integrated Marketing

Read more on these trends here. Would love to add Hybrid Retailing as the 6th trend, wherein there is a seamless integration of the ZMOT and the FMOT, specifically with the use of mobile devices. 

Deals May Get You in the Door, but They Won't Build Relationships.

2010 & 2011 were all about "deals". Everyone chased the "new & shiny objects" However, there is an increasing concern on the value of the "deal customers". Marketers have avidly sought social-media fans in recent years, often using deals or sweepstakes to boost numbers. But are they really attracting the right people? 

Data from social-media analytics firm Colligent suggest many brands have attracted lots of deal seekers. And while these consumers may be profitable, they're not the most-effective brand advocates, according to some analysts and social-media executives. 

Brands that build fan bases using sweepstakes "end up with a very difficult time trying to get those fans to engage," said Justin Kistner, director of social products at analytics firm WebTrends. "They were never with your brand in the first place. They just wanted a chance to win that iPad," he said. "We call it garbage fans." 

Twitter now is even touting its relative lack of deal-seekers among brand followers as a selling point vs. Facebook. 

Monday, March 19, 2012

Understanding Frictionless Sharing

The term frictionless sharing refers to one’s online activity on his or her social network and connected personal profiles being automatically shared without having to click a button. Anticipating a potential decline of social button usage, Facebook launched frictionless sharing so that the volume of content on Facebook would continue to grow at an accelerated pace. Frictionless sharing potentially eliminates the need of social buttons as a way to share content with social network connections. When end users approve frictionless sharing applications, all media consumption is automatically posted to their profiles for the world to see.

Many companies like Spotify, The Washington Post, and The Guardian have already adopted frictionless sharing, and we can expect more companies to do the same as people grow tired of clicking multiple buttons to share content across their social networks. While frictionless model continues to be controversial – especially around the invasive quality of its functionality – some reports suggest that many people have come to accept information sharing as the price one pays to participate in social networking. However, it’s only a matter of time before the passive sharing of content causes too many privacy violations to be ignored – forcing more people to question the need to “pay a price” at all.


The Social Media Advocacy Model

In theory, as social media becomes more common place, organizational audience engagement objectives, strategies and tactics should evolve past acquisition towards advocacy. is quite sure some consumer brands are heading in this direction but, in his experience, many companies and agencies still seem to be focused on driving audience awareness and using “likes” and “follows” as success metrics.

To spark some discussion on the topic Mark thought it might be helpful to present an encapsulated view of advocacy. This brilliant infographic aims to present advocacy at a glance, explaining where it sits on the audience relationship spectrum while visualizing the steps organizations can follow to move connections towards becoming advocates.

Key Points About Integrating Traditional and New Mediums

Some brands have been forged in the digital fire while others have had to (or eventually will have to) jump into it. The biggest problem Michael sees here is we are trying to treat these two entities as one.

These are two very different situations and need to be treated as such. Those outside the bubble, who did not build their business in these channels are interested in what digital has to offer, but they don’t always need it just yet. It’s not that there isn’t a juicy opportunity, but balancing multiple channels (especially a mix of traditional and digital ones) is no easy feat.

Michael writes that we often try to show traditional brands the success digital brands have experienced. It is alluring, but it isn’t always relevant. Rather than enticing prospects with purely digital examples like Zappos or even those who have long had digital efforts like Levis, one needs to understand a few key points illustrated wonderfully here in a recent post by Michael Schechter.

Digital Marketing Outlook. 2012.


Thursday, February 23, 2012

Digital Marketing Spending to Increase Across All Channels

While traditional digital channels such as search and email continue to dominate retailer marketing spending, social and mobile channels are growing in importance. Marketers are also seeking to improve data analytics capabilities to identify the most profitable channels and design the optimal marketing mix for driving engagement and sales. These are the top-level findings of a recent survey of 110 retailers conducted by Lauren Freedman and the e-tailing group, an e-commerce consultancy for merchants.

The report, “Surviving the Current Market Mania with a Solid 2012 Plan,” was sponsored by Bronto Software, the leading marketing platform for retailers and other commerce-focused companies. The free report is available for download at bronto.com.

Regarding revenue generation, merchants surveyed said that they expect top-performing channels will be SEO (31%), Mobile (mCommerce, iPads, mobile application – 30%) email (22%), paid search (22%) and social media (14%).

Saturday, February 11, 2012

Google unifies mobile, desktop Web experience with Chrome for Android

The newly introduced Chrome for Android mobile browser will enable Google to differentiate Android from iOS and could open up new marketing opportunities for brands. 

Chrome for Android, which Google introduced earlier this week, enables users to take a personalized Web browsing experience with them as they move from desktop to mobile and back again. The browser aims to simplify mobile Web use, therefore potentially encouraging users to spend more time on the mobile Web. 

Chrome for Android could open up new marketing opportunities for brands by enabling a more seamless cross-screen experience for users. 

While the experience between the desktop and mobile devices is currently disparate, with Chrome for Android, users can have a single experience. 

Sunday, January 29, 2012

70% impulse purchase - no more.

70% of the brand decisions are made in the last mile - we have been following this "theory" for years and I have written plenty about it on this blog. Retailers and brands have taken it for granted that attractive presentation and packaging profoundly influence most shoppers’ purchasing decisions. 

While Paco Underhill in his bestseller Why We Buy: The Science of Shopping, described supermarkets “as places of high impulse buying…. 60% to 70% of purchases there were unplanned, grocery industry studies have shown us.” These prompted retailers to devote ever growing resources to in-store promotion.

However, new(er) research by Wharton marketing professor David R. Bell differs with Underhill, describing the idea that most supermarket purchases are unplanned as something of an urban legend. In a new research paper, “Unplanned Category Purchase Incidence: Who Does It, How Often and Why,” Bell argues that the amount of unplanned buying is closer to 20%.

The above research is extremely significant and while I still believe that the "last mile is the new prime time" (when compared to the traditional TV prime time), there are a number of reasons for Prof. Bell's findings to be relevant today. One of the primary reasons is the emergence of the internet as the Zero Moment of Truth for brands and its impact on the First Moment of Truth in the store.

The shopper today walks into a store with far more per-purchase knowledge, recommendations & peer suggestions than was possible in the times when "Why we buy" was penned about 12 years ago. It is time to dump the 70% theory and focus on multichannel strategies and web-influenced retail sales.

Sunday, January 22, 2012

Mobile content development strategy for tablets.

Forrester Research predicts that tablet sales this year will start to outpace notebooks. While it is clear that marketers cannot ignore the tablet as a channel, the mobile device landscape has become increasingly complex and confusing for brands and consumers alike. 

How do you incorporate the tablet as part of your mobile content development strategy? 

Doug Heise and Sascha Langfus list some of the best practices for building an optimized, engaging Web presence on the tablet here.
AaramShop has adopted the Web App approach which helps it deliver the best of both worlds, allowing highly interactive mobile apps for the tablet that is optimized from a usability and functionality perspective, but that can also be deployed to a wide range of platforms and devices. However, what really caught my attention was the need to distinguish between the mobile phone app and the tablet app. Clearly a lot of additional work to be done here.

Thursday, January 12, 2012

Six Social Media Trends for 2012

From the guy who gets his trends right - most of the times, here are 6 Social Media Trends for the year ahead:
  1. Convergence Emergence. 
  2. The Cult of Influence.  
  3. Gamification Nation. 
  4. Social Sharing.  
  5. Social Television. 
  6. The Micro Economy.
To understand the trends in detail read this post by David Armano on HBR