Imagine if in 1947 Sardar Vallabhbhai Patel did not succeed in annexing
all 562 princely states to create a united India? India could have been a
collection of countries, much like the European Union Even today, India has 10 states with a population of over 60 million - close to, or more than, the United Kingdom's
- and 17 states with a population of over 25 million, which is more
than Australia's. Allowing for their demographic composition and
economic well-being, they could have been independent countries. An
ambitious multinational could have had up to 17 marketing managers in
these states - or countries.
However, this is today only a case of imagination. That India is
politically "single" stimulates the marketing of a "single" India. That
unified concept of India has been the focus of most marketers in the
last two decades.
Politically, however, India has been unbundled in the last three
decades. There is already talk that the leadership at the Centre in 2014
will be more influenced by the views of regional parties. As we stand
today, six big states (Uttar Pradesh, Tamil Nadu, Punjab, Odisha, West
Bengal and Bihar) are ruled by regional parties and four others (Kerala,
Maharashtra, Andhra Pradesh and Jharkhand) have a strong regional party
presence. Somehow, in the political arena regional connections are
working better than national promises. Further, if we consider language
to be a big repository and reflection of culture, then India has at
least 11 languages
spoken by over 30 million people and five by over 60 million. This
provides the opportunity to segment the market on the basis of culture
rather than general psychographics or behavior - the form favoured by many national marketers.
Interestingly, four of the 60 million-plus languages are restricted to
four distinct states - Bengali, Telugu, Marathi and Tamil.
Finally, consider this truth. Even today, there are very few number one
"national" brands that are also number one in each of the 17, or even
10, big states or markets of India. Most national number ones manage by
being in the top two or three in many markets, rather than being the
leader in all markets. Often, they are big in some pockets, and
non-existent or insignificant in others. Many markets have their own
strong regional players. Brand strengths are determined by the location
of head office, the history of the brand's launch and even the origins
of the brand's owner or creator. Since brands often have part of their
creators in them, the origin of the owners helps create a better and
stronger connection with their own cultures. The creator knows what
makes his people tick, and hence creates a mix - from product to
proposition to communication - that resonates better with them.
In the last 20 years, the only cultural segmentation considered by national marketers is the north-south divide. At product level, some categories, especially in foods, have recognised the differences and created the right composition for these markets, though under the same umbrella brand positioning. For example, it is leaf tea for the north and dust for the south; pure coffee for the north, blending with chicory for the south. Similarly, confectionery focuses on fruity flavours for the north and more pungent flavours for the south. Even exterior paints recognise that Kerala is rainier and consumers are more house-proud, so they have a more water-resistant product vis-a-vis the north.
However, in branding, the efforts have been rather limited. Besides language dubs, national marketers have often substituted film star celebrities in their advertising to address the south Indian markets, since they recognise the fact that the four south Indian states have their own thriving film industries. There has been no conscious effort to unearth local insights to create brands. Creating specific mixes for a market from product to positioning to communication has not been on the radar - leaving space for local brands to find their niche and offer stiff competition to national players.
Recognising the subcultures that exist in India could open possibilities of new portfolio and branding for national marketers. North and south are perhaps as different as we think Indians are different from the West. A study of feature films that have successfully travelled across the two zones is quite instructive. If two hits - Saathiya and Virasat in Hindi and Thevar Magan and Alaipayuthey in Tamil - were to represent the two zones (itself an oversimplification, but representative of cultural differences), the following observations emerge. Professions, upper-middle class homes, melodies, class consciousness and what younger people look like travel; names, lower-middle class homes, musical instruments, and the looks of older people don't travel - they are distinctly different. Food, clothes and rituals are distinctly different. Education is big in the south; business and making money are big in the north. The south is more formal and ritualistic; the north more spontaneous and participative. Male machismo is exciting in the north; assertive woman are more acceptable in the south.
All this clearly points to distinct rituals and role models for the two parts of India. Similar differences have been found when working on pan-Indian campaigns. For example, it was resoundingly well accepted in the north to show domestic helps dancing with the family, but it was decisively rejected in the south, where family and helps are more clearly delineated socially. Commercials based on Karwa Chauth, even if charming, lose their emotional appeal as they move southward. A mother not in control of her kids connects with the north, while it loses the attention of the south Indian mother, who feels she is always in control. Clearly, a closer examination of cultures represented by specific states and languages could be more illuminating and uncover richer codes for brands to closely connect with local populations.
As we move forward, it is worthwhile for national marketers to ask themselves: are our propositions and communication working best for each of our subcultural groups? Why are local brands finding a stronger local connection? Are the advantages of price and product the only reasons for their success, or are we as national thinkers missing a trick? If we tell global partners to localise their mixes for India, is there a case for applying similar principles to our local cultures?
Just as a child playing with Lego blocks finds joy in putting them together and then finds equal joy in breaking them up, there is an opportunity for national marketers to explore the joy of unbundling India. Something worth thinking about.
In the last 20 years, the only cultural segmentation considered by national marketers is the north-south divide. At product level, some categories, especially in foods, have recognised the differences and created the right composition for these markets, though under the same umbrella brand positioning. For example, it is leaf tea for the north and dust for the south; pure coffee for the north, blending with chicory for the south. Similarly, confectionery focuses on fruity flavours for the north and more pungent flavours for the south. Even exterior paints recognise that Kerala is rainier and consumers are more house-proud, so they have a more water-resistant product vis-a-vis the north.
However, in branding, the efforts have been rather limited. Besides language dubs, national marketers have often substituted film star celebrities in their advertising to address the south Indian markets, since they recognise the fact that the four south Indian states have their own thriving film industries. There has been no conscious effort to unearth local insights to create brands. Creating specific mixes for a market from product to positioning to communication has not been on the radar - leaving space for local brands to find their niche and offer stiff competition to national players.
Recognising the subcultures that exist in India could open possibilities of new portfolio and branding for national marketers. North and south are perhaps as different as we think Indians are different from the West. A study of feature films that have successfully travelled across the two zones is quite instructive. If two hits - Saathiya and Virasat in Hindi and Thevar Magan and Alaipayuthey in Tamil - were to represent the two zones (itself an oversimplification, but representative of cultural differences), the following observations emerge. Professions, upper-middle class homes, melodies, class consciousness and what younger people look like travel; names, lower-middle class homes, musical instruments, and the looks of older people don't travel - they are distinctly different. Food, clothes and rituals are distinctly different. Education is big in the south; business and making money are big in the north. The south is more formal and ritualistic; the north more spontaneous and participative. Male machismo is exciting in the north; assertive woman are more acceptable in the south.
All this clearly points to distinct rituals and role models for the two parts of India. Similar differences have been found when working on pan-Indian campaigns. For example, it was resoundingly well accepted in the north to show domestic helps dancing with the family, but it was decisively rejected in the south, where family and helps are more clearly delineated socially. Commercials based on Karwa Chauth, even if charming, lose their emotional appeal as they move southward. A mother not in control of her kids connects with the north, while it loses the attention of the south Indian mother, who feels she is always in control. Clearly, a closer examination of cultures represented by specific states and languages could be more illuminating and uncover richer codes for brands to closely connect with local populations.
As we move forward, it is worthwhile for national marketers to ask themselves: are our propositions and communication working best for each of our subcultural groups? Why are local brands finding a stronger local connection? Are the advantages of price and product the only reasons for their success, or are we as national thinkers missing a trick? If we tell global partners to localise their mixes for India, is there a case for applying similar principles to our local cultures?
Just as a child playing with Lego blocks finds joy in putting them together and then finds equal joy in breaking them up, there is an opportunity for national marketers to explore the joy of unbundling India. Something worth thinking about.
Article Source (http://www.business-standard.com/article/opinion/madhukar-sabnavis-regional-mixes-113030400553_1.html )
