noviembre 30, 2009

Marketers seldom tried to take advantage of India's diversity

What was the shape of the bindi on Lalitaji's confident forehead? Did you say sprightly red and circular ? Bingo. But can you also describe the 

pendant of the mangalsutra around her neck? Take your time. We'll wait.Tough one? Impossible one! 

Lalitaji always kept the pendant tucked inside her blouse, away from the sight of the viewer. Most married Hindu women, irrespective of the part of the country they belong to, sport a mangalsutra. But it's the design of the pendant that differentiates Mrs Sharma from New Delhi and a Mrs Venkatraman from Chennai. 

In keeping the pendant under wraps, the creative czars at Levers and Lintas, perhaps proved how one-size-fits-all has been the dominant credo of marketers in India. 

In America, consumer marketers such as as P&G and Unilever have created different kinds of utensil cleaners, laundry care products for Hispanics and African-Americans . The reason being that they have different cleaning needs depending on the way they cook and the kind of clothes they wear. One would have imagined given the famed Indian diversity that marketers here would have produced a host of products and product variants to cater to large differences that exist regionally, religiously and not to mention by caste. 

So why have marketers shied away from creating products specifically for them — despite large groupings that have completely different needs? Santosh Desai, MD & CEO, FutureBrands explains that large Indian companies historically only cared about customers in metros and other important cities. According to him it is only recently that they have begun to get out of their shell. 

Think about it, how many mainstream ads have featured Muslim characters ? Or for that matter how many companies have actually devised products that are specific to that community? This despite the fact that they number well over a hundred million in this country . Unlike their counterparts in Gulf (Ilkeon's the most famous), no telecom company has come out with a Quran phone, where the faithful can read the holy book on the go. 

Many marketing experts believe that product designers and marketers in India have traditionally been careful of not courting specific communities, in the fear of distancing themselves from others — a case of what might well be labelled as pseudo secular marketing. However, in not targeting specific ethnicities of the Indian society, national companies are possibly losing a huge opportunity to take their products to the next level of popularity. 

"A niche market only implies that it is focused, it need not necessarily mean, small," says Anand Halve, who runs Chlorophyll, a brand consulting firm. He feels national brands have a mental block when it comes to thinking regionally, as they are constantly searching for the lowest common denominator. 

Parvati Mahadev , a consumer insights consultant with Brandscapes puts it well when she says that by standardising products, one may end up meaning something to everybody, but fall short of meaning "a lot to some people" . 

Some marketing experts say catering to various social segments can take place at several levels. First if the preferences are starkly different, companies will have to design altogether different products (say beef food products for Muslims). Second is where a difference in habit calls for change in design like a spicier wafer variant for Tamilians or Andhraites. 

Another important aspect is communication and marketing for a product to cater to various cultures. Ironically marketers who have chosen to walk this path have been rewarded. Anchor Toothpaste, for example, changed the paradigm for social targeting by the introducing a 100% vegetarian toothpaste in the early 2000s. The Gujarat based Anchor originally had in mind, only Gujaratis and Marwaris, as the key communities for the product. 

Others like South Indians came in course of time. Similarly Big Bazaar has been actively mapping tastes of its customers and uses it for better assortment of products. Rajan Malhotra CEO Big Bazaar points out that the chain actively stocks sticky dal in places where there is a dominance of Gujaratis and spices where it sees Tamilians. 


Rang De Basanti 



Pizzahut, an international brand that believes in uniformity of its products has chosen to do things differently in India. It has special vegetarian outlets in Gujarati towns like Rajkot and Ahmedabad. Its stores in Hyderabad (predominantly Muslim) do not serve pepperoni items. 

There is obviously no dearth of local brands that cater to tastes of a particular section of people. Thousands of restaurants offering Jain food (targeted at Gujaratis and Marwaris) have mushroomed in major metros. Wagh Bakri Chai still boasts of a sizeable following in Gujarat and so do many other tea brands in other parts of the country. 

Mustard oil is largely accepted in the East and mostly local brands dominate the segment. City Mall in Nagpada (a Muslim dominated area in South Mumbai) perhaps stocks more Burkhas than anybody else in the country. But these are mainly regional brands, with only latent aspirations to go national. For national brands, designing products for different communities (or even adapting) has been the proverbial, road less traveled. 

But as far as reaching to the nuanced consumer is concerned, Asian Paints pushed the envelope the most. In the 90s, it put out a series of ads – each of them targeted a specific community like Tamilians or Punjabis. They were mainly aired in the run-up to a festival, like Pongal (Tamil New Year) or Gudi Padwa (dear to Maharashtrians). It helped the brand build a "strong emotional connect" as Amit Syngle, vice president, sales and marketing, Asian Paints put it. 

Strangely enough some Indian marketers are more cognizant of these needs when they go international. A company like Marico does not overtly target Indian Muslims at all. However, in Eqypt the company has a brand call Hamaam Zaita , a special Islamic hair care product for the country. Needless to say that, the Indian Muslim population outnumbers that of Egypt many times over. 

There are some who believe that this is largely attributable to practicality. According to Shiv Vishvanathan, a noted social scientist, uniform product design is more a matter of pragmatism than hypocrisy. "Ethnicity cannot be a core value for a large brand, as much as competency," he says. 

But market watchers say food, media and certain daily utility articles are objects where companies can gain the most by nuanced ethnic targeting. Islamic experts say there is tremendous opportunity in items like alcohol-free perfume, special toothpastes, halal cosmetics , toiletries, customised housing, even Islamic dolls. Consider this. 

There are close to 50 different local agencies that supply Halal products (where the poultry is killed without letting out blood) locally and for export — but barely a couple of national companies. (Venkateshwara, Godrej.) 
"Increasingly brands are trying to iron out the lovely and interesting kinks (in their target audience) and making it one smooth landscape," says Mahadev, "While the net result is beautiful, I wonder whether this helps in creating a more clear identity," she added. 

Most experts say in these days of media explosion, it is relatively easy to reach out to various ethnicities of the country. Regional channels and newspapers are dime a dozen. All it would take is the effort to make a different (and a special) commercial in Bengali or Urdu. Nobody can complain anymore that the costs of popularizing a new ethnic product are inhibiting. 

Hindustan Unilever and its ad agency Lowe broke new ground here when they launched a different set of ads for Surf Excel in the South, where the water is hard and lather limited. Quite contrary to the usual detergent ad with images of frothing detergent. Clearly here was a case of recognising that different consumers have different needs. 

Perhaps like in detergents, when parity products grow and marketers are faced with stagnating volumes, they will take advantage of the diversity that exists in India.

$9.4 billion Buying power of Hispanics growing in Austin

Buying power of Hispanics growing
$9.4 billion up for grabs annually in area
Austin Business Journal - by Sandra Zaragoza ABJ Staff

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In a city where one out of every three Austinites is now Hispanic, marketers are digging into their pockets a little deeper to connect with Hispanics.

The reason is clear: The Hispanic buying power in Austin has grown by 54 percent over the past five years to $9.4 billion, according to research presented at the recent Hispanic Marketing Symposium.

That spending power prompted the Austin Ad Fed and Hispanic Marketing Council to host the first Hispanic Marketing Symposium in Austin geared toward helping businesses develop marketing strategies. About 375 business and marketing professionals attended the sold-out event, which took place on Nov. 11 at the University of Texas.

Population growth is perhaps the biggest factor driving marketers' interest in Austin's Hispanic market, industry experts said.

L.A. at Large: 14th Big Saver Foods Store Opens in Long Beach

      Date Submitted: Fri Nov 27, 2009 

By A.MATTHEWS

LONG BEACH, CA – The latest in the chain of  Big Saver Foods stores opened at a well attended morning reception at the store premises here on Nov 19. This is the second store in Long Beach and the 14th  in a chain that was launched by Uka Solanki and his family 32 years ago.

The store was formally thrown open for business by Long Beach Mayor Bob Foster and Vice Mayor Val Lerch, Council member for the 9th District, who cut the ribbon. Shoppers were lining up since the early hours to take advantage of the opening promotions. Guests at the reception included City Council members, Police, Fire Brigade, vendors, suppliers, bankers, friends and well wishers. It was an ethnically diverse group representing the true face of the community.

Both Foster and Lerch lauded the efforts of Uka Solanki and his contribution to the community. They said though redevelopment is very active in the 9th District, Big Saver was built without use of redevelopment funds.  Harish Solanki, President, Big Saver Foods, said the store was set up to help and improve the community and urged those present to form a partnership to benefit residents of the community.

The new store is completely full service, the only one of it's kind in the north-west section of the 9th District. It is above 45,000 sq. ft with 14 departments including produce, grocery, Liquor, beverages, hot bakery, kitchen, meat, dairy, deli and frozen section.

The stores feature foods and products that are not only popular with the Hispanic community, but also are not usually stocked by most American grocery stores. Many products – including beverages, cleaning detergents and other general products – are imported from Mexico and Central America. Specialty cuts of meat are also available.

In 1973 Uka Solanki didn't know much about running a business. Armed with a bachelor's degree in electronic engineering from Pacific State University and a bachelor's degree in Chemistry from India, he began his career in the food industry when he and a friend bought a drive-thru dairy store on Redondo Beach.

They later went on to purchase a grocery store in Torrance. The store was too large for the amateur businessmen to manage, so they sold it six months later. Solanki took his portion of the profits and took off on his own. He purchased Big Saver Foods, a small, independent grocery market located in Lincoln Heights in 1977,and the rest is history.

To this day the Lincoln Heights  store remains the anchor of the business .The chain largely targets the Hispanic market and has thrived on creating a "back home" experience for Hispanic Americans and their families. This is what helped Big Saver Foods grow from a single store operation to what it is today. Big Saver Foods stores are operating in Los Angeles, Orange, and Riverside Counties with stores in Lincoln Heights, Lawndale, El Serino, Rosemead, Norwalk, Bellflower, Long Beach, Santa Ana, Le Puente, Riverside. 

Uka Solanki is Chairman and is helped by son Harish who is the President and Project Manager. Uka's wife Nalini is the Vice President and also manages the Finance. Daughter Pratima is Director Operations of the Fresh Food Department while her sister Jyoti is Director Corporate Relations.    

The family run business has generated hundreds of loyal customers who enjoy the stores high quality meats, excellent selection of fresh produce and a wide array of hot and prepared foods.

Porter & Sons Funeral Home expands on the family legacy

Porter & Sons Funeral Home expands on the family legacy

New branch opens on Bardstown Road

More than 100 years after its founding in western Louisville, A.D. Porter & Sons Funeral Home has opened a second location, branching out to southeastern Jefferson County.

The expansion to 4501 Bardstown Road is about more than geography, said Dani Porter, vice president of the family-owned company. A.D. Porter & Sons is also stretching beyond its core African-American clientele.

While the new branch will offer more convenient service to the black community in Newburg and other parts of southeastern Jefferson County, it also will help A.D. Porter & Sons reach out to the area's growing Hispanic population.

"Looking at other funeral service providers in the city, no one has really focused on the Hispanic market," Porter said. "And they have special needs and special services that they do, like everybody does."

"Louisville is overdue for a multicultural funeral home where everyone feels welcome and can be accommodated," said Woodford R. Porter Jr., the company's president and chief executive, in a statement.

Established in 1907, A.D. Porter & Sons is one of Kentucky's oldest, continuously operated family-owned African-American businesses.

Its founder, Arthur D. Porter Sr., was the first black person to run for mayor of Louisville, losing heavily in 1921 as a member of the Lincoln Independent Party.

Dani Porter, his great-granddaughter, is a member of the fourth generation of Porters in the business.

The Rev. Walter Malone Jr., pastor of Canaan Christian Church at 2840 Hikes Lane, said it's "wonderful" that the Porter funeral home has established a branch in the area.

"We really celebrate this development" because it brings the rich tradition of A.D. Porter & Sons to a location that's more convenient for many members of his predominantly black congregation, he said.

And the expansion means that the latest generation of Porters will be able not just to maintain the legacy of A.D. Porter & Sons, but "take it to another level," Malone added.

A.D. Porter established the business that bears his name in a small house on 15th Street.

The funeral home expanded over the years to a sprawling city block at Chestnut and 13th streets, where it stands today.

The business draws customers from all over the city, Dani Porter said.

But people increasingly want services closer to where they live, and "we have as many customers on (the southeast) side of town as we do on this (side)," she said.

Porter said the new branch, A.D. Porter & Sons Funeral Home Southeast, is a little smaller than the older home, but "it's all on one level, which is nice for our senior folks."

Its main chapel can seat more than 200 people, and overflow rooms can accommodate another 200 or so.

Louisville Metro Government provided a $150,000 low-interest loan toward the funeral home's construction, said Chris Poynter, spokesman for Mayor Jerry Abramson.

The Metropolitan Business Development Corp. approved the loan last April.

"This is a long-time Louisville company … and now they're expanding into an entirely new part of town, (which) will create new jobs," Poynter said. "So it was a no-brainer from our end to help them out."

Brands Prepare for a More Diverse 'General Market' With Generational Shift Afoot

Brands Prepare for a More Diverse 'General Market'

With Generational Shift Afoot, Ethnic Insights are Standard in Ad Efforts

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With traditional marketers such as McDonald's and State Farm embracing ethnic insights as an integral component of their general-marketing work, it may seem that "ethnic" is finally going mainstream.

MONEY TALKS: State Farm ad
MONEY TALKS: State Farm ad
But marketers shouldn't expect to be hailed as civil-rights warriors. After all, outside of the industry, increasing consumerism isn't exactly a noble pursuit. And ethnic agencies shouldn't expect the dawn of a new era in which they're given a seat at the agency-of-record table. Indeed, there are signs that as "general" comes to mean something other than "white," spending will drop in ethnic niches—and research and ethnic findings will be handed over to traditional general-market agencies.

Whatever the case, it's clear that as the ethnic makeup of the U.S. continues to shift, marketers in certain industries are preparing for a more diverse general market.

"I think industry-wide, as America becomes more multicultural, you will see more ethnic insights across the board," said State Farm VP-Marketing Pam El. "I think you're seeing it already, but I think you'll see it two-, three, four-, five-fold going forward."

One of the key drivers is a generational shift. Younger consumers seem to be blending faster than their older ethnic counterparts. Pepper Miller, an ethnic-marketing consultant, said more marketers are looking for "urban mindset" insights, which come from a blend of African-American and Latino cultures, from big cities. While African-American boomers may be put off by "urban" interests, the segment continues to enjoy aspirational status.

Golden rules
McDonald's does 40% of its U.S. business with ethnic minorities;50% of that group is 13% or younger. 

When McDonald's takes its ads to market, the chain makes sure that spending behind certain spots represents the country's ethnic makeup, such as: 15% behind Hispanic marketing, 12% behind African American and 5% behind Asian.

Ms. El said that State Farm has shifted its marketing based on the understanding that young people across ethnic groups may have more in common than older folks of the same race. That's why State Farm uses Lebron James to communicate with the entire youth demographic, rather than relegating him to campaigns directed specifically at African-American youths. The insurer has also recently chosen animated spots from African-American agency Sanders Wingo for general-market communications.

McDonald's has contemporized its brand over the past five to seven years with help from marketing that incorporates ethnic insights. The chain now does 40% of its U.S. business with ethnic minorities, and 50% of that group is 13 or younger. And so to build its U.S. advertising, McDonald's constructs focus groups with disproportionate minority representation, giving equal weight to Hispanic, African-American, Asian and general markets whenever possible. Neil Golden, chief marketer of McDonald's USA, said the result has been more-entertaining advertising that has helped drive the chain's business well ahead of its competition. Part of the reason it's working, Mr. Golden said, is that "consumers more and more are not only accepting, but embracing diversity and embracing it in lifestyle and in food." He said the company has instituted a performance-evaluation model for all of its agencies, measuring how well each agency's work "delivers against ethnic insights."

Insights gleaned from ethnic research have the added benefit of offering a perspective that is a part of mainstream culture while also being separate from it. Robert Brooks, a consultant and former P&G marketer and longtime champion of Burrell Communications, explained, "African-American agencies had people who were in the minority of society who were always looking up—an 11% minority against 80% of the population—so they lived among us and observed us, so they were keen observers, which led to great consumer insights that led to great advertising ideas"

But it's important for marketers to tread carefully—especially when it comes to executing these insights. One bone of contention is the issue of handing the research over to general-market agencies that have historically woeful records when it comes to their own diversity practices. Hadji Williams, an advertising and social-media consultant who has worked at both general market and ethnic agencies, said that this approach can be seen as disingenuous. It's akin to saying, "We're going to help general-market agencies with their deficiencies and then we're still going to marginalize our ethnic agencies and keep them at the back of the bus. It doesn't make good business sense."

There's also the risk of offending consumers by either playing on stereotypes, or appearing to be inserting actors of color and calling it culture. Ms. Miller noted that a number of marketers still spring for cheap laughs, casting Asians as martial artists, Hispanic women as loose, and black women as mean. Beyond issues of offensiveness, there are matters of cultural cluelessness. She recalled a Joe Boxer commercial with an African-American man bouncing around in a cutesy way. The spot was geared at women, who make a substantial portion of the men's underwear purchases among whites. But the same isn't true in the African-American market, in which men buy their own underwear.

Getting it right means finding imagery both appealing to the general market and believable to the segment in which it is based. Ms. Miller recalled a Tide commercial in which an African-American man, wearing a wedding ring, was drying his son off after a bath. It scored huge with African Americans, and was a hit in the general market as well.

It stands to reason that if ethnic agencies are the source of much of this research, they'd regularly be considered for—and win—agency-of-record status for major brands. But a quick look at most AOR reviews will disabuse anyone of that notion. "That's something ethic agencies struggle with," Mr. Williams said. "Black, Hispanic and Asian agencies may do great work, but you can never be an AOR."

Mr. Brooks added that he has campaigned for ethnic agencies as AOR's for decades, and never gotten a satisfactory answer as to why it wouldn't be considered.

And another issue to consider: As ethnic insights trickle up into general-market work, marketers may cut back on some targeted spending—especially in a recession. Ruth Gaviria, VP-multicultural ventures, Meredith Corp., said that targeted spending, at least on Hispanic advertising, has fallen against general-market spend. In general, she said that ethnic work has been "a luxury." But waiting on the sidelines is a luxury marketers can only afford for another year. "When the Census data is released and we have the come to Jesus meeting, then we all regroup," Ms. Gaviria said. "We have a game-changing opportunity in 2011."

Contributing: Jack Neff