TATA NANO - AGENCY: LODESTAR

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CHALLENGE: Announced in 2004, launched in 2008 – in the meantime, the Nano buzz had waned. The challenge was to recreate the excitement around brand Tata Nano. Moreover, time on hand was a constraint. Due to the hush hush around the car before the launch, the agency was made aware of the launch just 3 weeks before D-Day...

SOLUTION: They decided to use conventional media in an unconventional way to create buzz. The agency turned the traditional lifestyle auto advertising concept on its head.

PRINT: The news-in-brief columns were renamed as Nano-News columns, while trivia sections were re-branded as Nano Corners. On the day of the launch of the car, a Nano cartoon appeared in R.K.Laxman’s popular cartoon section in The Times of India.

TELEVISION AND RADIO: Pop up ads of the Nano were used during popular sitcoms to catch the attention of the consumers. But the most interesting TV innovation came in the form of “Nano Breaks” in between popular shows. On radio too, Nano Breaks, Nano Destinations (weekend getaways) and Nano Smart Routes (to avoid traffic) were made popular by leading RJs.

AMUL BUTTER: More than 30 million 100 gm Amul butter packs were renamed and sold as Nano butter packs.

MEDIA STRATEGY: The only thing about this campaign that was not ‘nano’ was the use of various media. 35 publication with 380 editions, 80 television channels, 41 radio stations and top ten internet sites were used to create the big buzz for the small Nano.

RESULT: The innovative strategy paid off well. Within two weeks of the launch, the car got 5,00,000 bookings. The car website was flooded with 5.4 million visitors in 24 hours of its launch.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Without an established distribution network in place, most of the AMCs at present are dependent on distributors, agents who sell funds for a fee. However, the recent regulatory change, which banned the entry load levied by mutual funds on investors, has created a hurdle for the AMCs, particularly small and new, in becoming aggressive in the retail segment.

Meanwhile, as research reports suggest, the retail segment is expected to be the largest contributor to the growth of the asset management industry in India and is expected to grow at a CAGR of 35%-42% in the next five years. Moreover, during this period the mutual fund industry could see an addition of nearly nine million first time retail customers. If this is considered as a target that the industry is gearing up to meet, then very soon investors will see AMCs bombarding the market with new and innovative marketing initiatives, brushing aside their pre-historic strategy of depending on agents for sale. It will also highlight how different their product is and how it has delivered good returns in their advertisements. So, where will the AMCs be focused now?

Well, as per global consulting firm McKinsey, it’s branding. “Fund performance is necessary but not sufficient for driving the AUM growth. However, a positive perception of the brand induces a positive view of performance, even if the figures don’t bear this out. Strong brands influence perception of fund performance and hence spur growth,” suggests a McKinsey report (Indian Asset Management: Achieving broad-based growth). Agrees Waqar Naqvi, CEO, Taurus Mutual Fund. “Brand always has been a key aspect for the AMCs. But yes, earlier it used to get a little diluted because of the role of agents. But if the thrust shifts away from the old model of generating business, then brand will certainly take a front seat.”

However, distribution will continue to hold a lot of value for the AMCs. Most importantly, with banks, independent financial advisors and national distributors, all playing their roles, the AMCs have to be very careful in choosing their distribution partners. Because those partners will actually be the vehicles riding whom the AMCs can penetrate deep into the retail segment. As per Naqvi, “Owing to the change in regulations, we may soon see slight changes in the way the business happens today.” That certainly confirms the fact that the AMCs market itself will also see good amount of changes. So, don’t be amused if you get to see Shahrukh Khan selling XYZ fund on the idiot box.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

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For Exclusive Footage by Sunday Indian Click Here

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