Luxury Brand

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t hs long been lelt bv nrketers
nd reserchers like tht incone
is not n deoute vv ol cptur
ing llluence becuse it is grosslv
understted. Most reserch is bsed
on vht the respondents clin to do
nd there is no reson to believe tht
thev vill lie bout the sop thev use
or the nunber ol tines thev shop lor
grocerv per nonth or. lor tht nt
ter. the brnd ol cr thev drive.
Incone dt is lvvs red vith
pinch ol slt.
In its sted nost nrketers hve
relied on SEC clssiliction. vhich is
bsed on the level ol eduction nd
prolession ol lnilv's Chiel Wge
Erner (CWE) in connon vords
the bredvinner. The highest SEC
clssiliction is given to household
vhere the CWE is prolessionl
grdute (or postgrdute) nd
vorks s niddle or seniorlevel
executive.
Todv. hovever. the distinction
betveen the durbleovnership
ptterns ol SEC A
consuners versus
SEC C consuners is
blurring lst.
Therelore. neither
incone nor SEC
clssiliction is n
ccurte depicter ol
consunption
disposition ol
households.
Conbined vith
the lct tht in nv
lrge scle survev. the
upper incone or upper SEC
segnents tend to get nrginlised.
verv little inlorntion exists on the
llluent segnents ol netropolitn
Indi.
The Iielsen LMAR (Lpper
Middle nd Rich)
survev hs redelined
llluence using the
indictors tht ve ll
use to tell the vorld
tht ve hve rrived'.
The survev enplovs
conbintion ol
lilestvle nd
ovnership ol
consuner durbles to
prolile the hrdto
rech llluent Indin
consuners nd their
nss nd energing nedi
consunption nd lilestvle hbits.
WHC ARE !HE AFFLLEÞ!?
T
he survev estintes there re 2.6
nillion households cross 35
Indin netros tht cn be decreed s
llluent on the bsis ol their lilestvle
nd durble ovnership.
Wht inge does the vord
llluent' evoke in vour nind? Il it is
tht ol n Englishspeking. English
educted. Englishnedi consuning
person. vou re in lor lev surprises.
While 49 per cent ol llluent
individuls re educted in English.
the other hll hs received its
eduction in other lnguges. The
lnguge spoken t hone is lso not
prinrilv English but other
í|| ||e |||í|||
|IlNû I9 Ih| â|||B|NI
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0| ||e 1.é m||||ea c|||cea| |ecse|e|4s ||r|aq |a &5 me|res e| Ia4|c, |ew mca¡ ct|cc||¡ spea4 ea pre4ct|s ca4
serr|tes ||c| ||e mcr|e|er spea4s m||||eas preme||aq? Here |s c rec|||¡ t|et|.
ßv vÁT5ÁLÁ PÁNT
FK|\|NI\
lnguges. vhich is lso the
prelerred lnguge lor consuning
their prinrv nedi. Even nongst
the nost llluent Rich' segnent.
onlv 14 per cent spek English t
hone nd lrge nunber nongst
these vtches TV in Hindi.
A look t the CWE ol these
households lso dds perspective on
their prolile. Most ol the CWEs re
35plus. grdutes nd bove nd
there re s nnv businessnen s
there re slried corporte soldiers.
Ierlv hll ol these llluent
households hve nore thn one
erning nenber. Alnost nine in ten
individuls live in nucler lnilies.
or nucler lnilies vith elders living
vith then. nd n verge lnilv
size is ol 4.
Thev ll hve the bsic set ol
durbles tht vou vould expect then
to hve (relrigertors. TV. vshing
nchines nd nobile phones).
There re other subtler vvs in
vhich the Rich nd Lpper' Lpper
Middle clsses displv their
llluence. Ior instnce. vou vill lind
nore doubledoor relrigertors.
lront loding vshing nchines nd
nicrovves in the rich segnent thn
in the other tvo segnents.
Iot surprisinglv one in live ol
these llluent households hve tvo
TV sets or nore vith the percentge
ol nultiple TV sets going up in the
The inportnce ol regionl nedi lso
cnnot be overlooked vhether it is
television or nevsppers nd ngzines.
I
t car |e arcueu t|at W|er |arce·sca|e aass reauers||c surºe]s |||e
ukS aru IkS t|rcW uc ercuc| uata cr t|e crct||e ct t|e att|uert,
arct|er surºe] cr t|e saae secaert |s reuuruart. ucWeºer, t|e crcuru
rea||t|es ct ar] |arce sca|e surºe] are suc| t|at t|ese saa||, |ut
|accrtart, secaerts cet ccrs|stert|] uruer·recreserteu |r t|ese surºe]s.
See C|art ucW \cu lcc| at It (cr t|e rext cace), tcr exaac|e. It
ueacrstrates t|at t|e rua|er ct |cuse|c|us W|t| a acrt||] |cuse|c|u
|rccae (|uI) ct at |east ks 40,000 ºar|es urast|ca||] acrcss surºe]s. uct
tc aert|cr t|e u|tt|cu|t] excer|erceu |r cett|rc access tc t|ese att|uert
|ru|º|uua|s. |cst ct t|ea ||ºe |r cateu |u||u|rcs W|ere sa|esaer aru
|aW|ers |aºe as cccu a c|arce ct ertr] as researc|ers.
Jc |]cass t|ese u|tt|cu|t|es, u|e|ser u|Ak (crcrcurceu ]cu·aar)
auccteu tWc cract|ces. A ||st ct a|| ||test]|e aru uura||e cWrers||c
ºar|a||es t|at car ccss|||] uet|re att|uerce Was createu. J|rcuc| c||ct
||st|rcs ccruucteu |r se|ect c|t|es, t|e ||st Was W||tt|eu ucWr tc a teW
ºar|a||es t|at ccu|u |e useu as u|scr|a|ratcrs. lcr |rstarce, |t eaerceu
t|at cWrers||c ct a lC cr a |actcc Was a u|scr|a|ratcr W|er |t caae tc
|uert|t]|rc a |arce rua|er ct att|uert |cuse|c|us.
uext, ar exters|ºe u|rectcr] ct te|ec|cre rua|ers Was createu. J|ese
rua|ers Were t|er ca||eu |ru|º|uua||] aru crct||eu cr t|e |as|s ct
creserce cr a|serce ct t|e u|scr|a|rat|rc ºar|a||es tc esta|||s| t|e
ur|ºerse ct att|uert |cuse|c|us.
l|ra||], a se|ect saac|e ct att|uert |ru|º|uua|s Was |uert|t|eu tcr t|e cre
cr cre surºe]. u|e|ser useu a ueu|cateu t|e|u tcrce ct 430 |ru|º|uua|s tc
carr] cut t|e surºe]. 0re ct t|e aa|cr tas|s tcr t|e t|e|u teaa Was tc set
uc |rterº|eWs W|t| t|ese ct|erW|se att|uert |ut t|ae·cccr |ru|º|uua|s. J|e
se|ect |ru|º|uua|s Were t|er aua|r|stereu tace·tc·tace uuest|crra|res tc
exters|ºe|] crct||e t|e|r aeu|a aru crcuuct ccrsuact|cr |a||ts.
J|e surºe] |uert|t|eu t|ree secaerts ct att|uerce trca ||test]|e aru
ccrsuaer uura||es aacc|rc · uccer ||uu|e, 'uccer' uccer ||uu|e aru
k|c|. J|e crcuc|rc Was ucre |aseu cr t|e cWrers||c ct a car, a
ccacuter, ar lCu te|eº|s|cr, aru sceru|rc a |c||ua] a|rcau.
u|e|ser u|Ak |s t|e t|rst·ct·|ts·||ru |arce·sca|e, arrua| surºe] |r
recert t|aes aru |t ccºereu acre t|ar J8,230 |ru|º|uua|s acrcss 33 Iru|ar
aetrcs. lcr t|e t|rst t|ae, ||test]|e |a||ts suc| as c|u| aea|ers||c,
s|ccc|rc treuuerc] at acuerr reta|| aru scerus cr act|º|t|es suc| as t|re·
u|r|rc Were a|sc ueta||eu.
I|e Bet|ca|ts
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upper tvo segnents. The
inplictions? It is connonlv
believed tht nost households in
Indi re single TV households.
Thev re. but the snll percentge
tht do hve nultiple TV sets lso
hve the nonev to spend.
A PLAÞÞER'S DELIH!
A
s per Iielsen LMAR survev. TV
energes s the nediun ol
choice nd in todv's ge ol lrg
nented TRPs. it hs becone ll the
nore inportnt to rech out to vour
trget vhen thev re nost likelv to be
receptive.
While one in seven red English
dilies. less thn 40 per cent rech out
to grb ngzine. It is tine plnners
took serious look t the energing
lterntives too like rdio. cinen
nd the internet. vhich re nore
likelv to vield cptive udience
considering their incresing
populritv vith consuners todv.
While overll redership nunbers
night be snll lor ngzines. nost
ol the llluent individuls vho do
red ngzines. sid thev buv it oll
the nevsstnds.
This hs sone interesting
inplictions lor ngzines lron the
nrketing nd editoril point ol
viev. vhich should strive nd get the
eouivlent ol television ¯breking
nevs" on their lront covers to ttrct
reders.
The inportnce ol regionl nedi
lso cnnot be overlooked. Whether
it is the lnguge ol TV consunption
or the lnguge ol the ngzine
nong those vho do red. Iielsen
LMAR throvs sone interesting
insights on hov regionl chnnels
re ble to retin the ttention ol the
udience vho hve the noolh nd
re lso bent tovrds their respective
nother tongues.
WHC IS RICH?
I
ielsen LMAR pints con
plete picture ol the llluent
person. Iot onlv do ve get insights
into their nedi consunption hbits.
ve lso get to knov vhere ve cn
rech then. hov thev spend their
spre tine nd nore inportntlv
hov nuch thev spend.
The inportnce ol these lindings
lor nedi plnner is sellevident.
Ior nv nrketer. regrdless ol
vhether thev sell topoltheline
pir ol sunglsses or shnpoo.
understnding nd proliling the
lilestvle ol its consuners shll be
criticl to the success ol their
nrketing plns.
While there is set ol llluent
individuls vho hve spent on top
oltherung brnd nnes (Gucci nd
D&G to nne lev). ve see. bv nd
lrge. the vlue lor nonev' nindset
ol Indins coning through. Ior
exnple. nost ol the llluent
households use hir conditioners.
but vhen it cones to brnd choice.
vluelornonev plvs n inportnt
role. Ior instnce. Mruti Suzuki is
ovned bv six in 10 llluent
households. Sunsilk. nd not Dove.
is the shnpoo ol choice nong
nore thn 20 per cent ol this
segnent. And even though
signilicnt percentge ol then invest
in insurnce s vell stocks. lixed
deposit is the instrunent ol choice
lor nost.
The Indin llluent segnent is n
interesting bunch lor vhon vlue'
gets redelined vhen it cones to
bdgevlue itens such s sunglsses.
pens. vtches. nd lrgrnces. vhere
thev do not hold bck lron spending
Rs 3.000 or nore on products nd
even up to 100 tines this nount on
interntionl vctions. It vill be
exciting to vtch hov luture
genertions ol llluent Indins re
deline this vlueconsciousness.
Clerlv. s tine goes bv. people t
the top ol the pvrnid re onlv going
to crve lor nore vhile the bse ol
the pvrnid expnds s it is videlv
held. Cne thing is lor sure. it is this
snll golden nunber ol households
tht vill blze tril ol spirtion nd
shov the vv lor the nnv nillions
striving to get into the LMAR
tringle.
The author is Director, The
NieIsen Companv
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Iec IJ ell|tes| ls¢|es t|||e:
IHI |k0NIk0NNIk!
Rank Citv
J ue|||
2 berca|uru
3 0reater |ua|a|
4 C|erra|
3 u]uera|au
ô |c||ata
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8 lure
9 )a|cur
J0 A|aeua|au
1
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Ntm|er el let:ele|¢: ||s |e\lI w||l e
mes|l|¡ |steme el mere |les K: +J,JJJ
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H0w f00 |00K AI II
Nk! '0é Ik! '07 0BAk '07
As tine goes bv. people t the top ol the
pvrnid re going to crve lor nore vhile
the bse ol the pvrnid expnds.
Ne|e. We|jl|e¢ |e:e. Bccer M|¢¢|e ÷ 7Z.JJ |e\l, Bccer Bccer M|¢¢|e ÷ l.âJ |e\l
es¢ K|tl ÷ J.7+ |e\l
\etrte. N|e|:es BMâK \trºe¡
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||||| / ||'í|||í |M/e||ï?
w|c| |4ea||||es c |ctcr¡ |rca4 cs eae? I|e etper|s |c|e c trct| c| p|aa|aq 4ewa ||e |ct|ers.
8¡ 0er|ac Ies||
9FlNl9N
T
here is short nsver to this
ouestion: ¯Through uthenticitv."
The recent recession hs seprted
uthentic luxurv brnds lron the
pretenders. the vnnbes. the erstz.
the counterleits nd the inittions.
Who do these brnds trget? The
oulilving criterion lor the trget is
ttitude. not llordbilitv. Thev ppel
to snll. exclusive connunities. Ior instnce. vtch brnd IWC
hs its connunitv ol 1 lkh connoisseurs to dd vlue to itsell.
The DIA ol brnd. in nost cses. is delined bv the
origintor ol the brnd but shred s strong set ol behviourl
guidelines nong designers. service people nd vendors. IWC is
built round innovtion nd its rnge includes severl lirsts.
Everv BMW or Mercedes shovroon round the vorld vill look
the sne. vet nost buvers re lloved to custonise close to 60
per cent ol the cr's interiors. Most luxurv brnds build their
brnds round unioue nd exclusive products. linited
distribution nd inpeccble service.
Mss nedi dvertising plvs snll role in the cretion ol n
uthentic luxurv brnd. The lile nd deth ol luxurv brnd is
decided bv the blnce betveen rigiditv nd llexibilitv. Il the
brnd believes tht its ovnership vlidtes the custoner's vlue
nd therelore. in its rigiditv. does not chnge its ollering to cter
to the chnging custoners' needs. it dies. Il. on the other hnd.
brnds tht becone too llexible nd enter ctegories thev re not
experts in iust to cter to energing opportunities die slov
deth. Lile t the top ol the pvrnid ol privilege is precrious.
W
hen vou re rich. vou look good.
vou re vise nd vou re sexv." is
vittv vet insightlul tke on the nind
ol the luxurv consuner.
When people couire velth tht
goes lr bevond their needs. it gives
then sense ol pover nd
cconplishnent. Thev begin to seek
vvs ol expressing this heightened
sense ol sell vorth nd tht is vhere luxurv brnds cone in. s
svnbols ol success nd sellctulistion. Thev thrive on
conversing vith the velthv bout sunptuous living. bout
things tht re ultrexpensive nd bout oulitv tht is
inpeccble.
Tke look t the vorld ol Gucci. Boucheron. Rolex. All
Roneo. Arnni. YSL nd vou vill lind it to be etherel. lnost
unrel. Exclusivitv nd rrilied presence re t the hert ol this
luxe' territorv. It vorks bv setting nev benchnrks ol esthetics
nd oulitv. And bv enveloping the product or service vith n
experience tht nkes the brnd seen like trophv vorth
couiring lor the rich. nd distnt dren lor the rest.
It is lir. then. to sv tht luxurv brnds crete ingerv lor
thenselves bv ssuning n ur ol extrene exclusivitv. bv
stretching the spirtionl ouotient nd bv veving n
experience round the brnd tht intensilies the sense ol rre
chievenent. The possibilities re virtullv linitless becuse like
soneone sid. ¯It is inpossible to overdo luxurv'"
KIkAN KHA|AP Ce|eaa¢er, Cllereal¡ll 8rea¢ & Cemmaalte|leas Ceasal|eat¡ 0BI!H !HkIKHAN0I CO, Cea|ret| /¢·er|lslae
tes||ste¢ es ceje Jâ >>
C
pulence nd luxurv hve
lound nev hones nd
nev delinition in Indi
vith the nss llluent' nd super
rich vving lor their lir shre ol
sttus svnbol ol ovning nd displv
ing highend brnds. It could be
nvthing lron Mont Blnc pen to
Tg Heuer vtch or BMW cr.
Todv. luxurv or highend brnds
re not bout the ttributes nd
letures - thev re bout the
experience. So hov best cn n
dvertiser nd nrketer rech out
to potentil high spenders pronising
then elevtion to specil nd
exclusive club? Are there nv cler
spces or nedi?
E!!IÞ !C KÞCW
T
he lirst step tovrds devising
nedi pln to rech out to the
desired trget group is to identilv nd
ctegorise high spenders s nss
llluent. llluent rich nd HIIs
(high net vorth individuls).
According to Ri Hlve. principl
consultnt t the investnent lund
Snr Cpitl. these re certin
terns nd terninologies tht
nrketers enplov to deline their
specilic tsks. The pvrnidicl
structure ol spenders. nore or less.
renins the sne vhtever vou cll
then llluent. llluent rich or
HIIs. But nrketers tend to rise or
lover the delinition depending on
the product tht is being sold.
Consider this exnple: one MIC
bnk delines HIIs s those vith
reltionship ol Rs 1 crore vheres
nother Indin brnd ( privte
bnk) delines it t Rs 25 lkh.
As one goes up the pvrnid. the
nin dillerence energes in noving
lron ¯desire to belong" to
¯individulitv I don't need to
belong". To tke n exnple. vhere
nss llluent' person nv desire
Tissot vtch. rich person nv desire
Tg Heuer. But the HII nv go
bevond these knovn brnds lor
reltivelvunknovn brnd (like
Pneri) becuse he vnts to portrv
not iust his velth but lso tht he is
bevond vnting to belong to vell
knovn brnd.
Mrketers. points out Mon Jin.
hed. strtegic investnents. Indi
Medi Exchnge. club high spenders
in groups on the bsis ol the kind ol
ovnership tht thev displv. Cther
supporting prneters like eduction
too re considered longside.
WHERE !C CA!CH !HEM
H
lve explins tht nedi vehi
cles incresinglv get
nicrolocused s the TG's llluence
increses. There is lso strong issue
ol the nediun being the nessge lor
nnv highend brnds. It is unlikelv
tht n exclusive brnd vill dvertise
on ninstren TV progrnne
even il it vs cost ellective it vould
not vnt to lose its exclusivitv'.
In Indi. luxurv is beconing
brod bsed lron 5str hotel
lobbies to exclusive stores. All this is
being led bv n incresed vreness
due to trvel nd internet nd
evolving spending hbits. ¯Luxurv
prospects re no longer iust the super
rich. Thev re lso the ones groving
rich too vith pronounced need lor
expression or indulgence. Surrogtes
Dsegnent cr. vlue ol their
hone. the tvpe ol crd thev use.
globl trvel. prolessionl sttus. pst
luxurv dllinces. luxurv purchses
or stving in luxurv hotels re
conbined to shrplv trget the
llluent." svs Ashish Mishr. chiel
strtegist nd hed. Wter
Consulting. the design rn ol the
Mudr Group.
Custonervlidted brnd
endorsenent is the ultinte
pronotion lor elite. expensive
brnds. Iullilling the incresinglv
dennding custoner's stislction
level becones n inportnt tsk.
Mishr points out tht nedi used to
rech out to high spenders include
virl cnpigns lor exclusive tribe
cretion. nedi plnning to identilv
the right chnnels nd increse
/ J||'í|J| J| |J!
w|c| |s ||e mes| e||et||re me4|c ||c| tca |e|p |ctcr¡ |rca4s rect| ||e c|||cea| teascmer ca4 me||rc|e
|er |e spea4? 8¡ !caqee|c Icawcr
C9MMBNlCâIl9N
Crs re probblv
the best indictors ol
llluence. Therelore.
utonobile brnds
vork tht nuch
hrder.
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cnpign elliciencv. experientil
nrketing to shovcse the enhnced
vlue vith the right ssocition nd
direct nrketing to touch the right
udience t the right touchpoints.
He shres lev globl exnples.
Recentlv. Jgur. the luxurv cr
nker. discreetlv loned 10 ol its nev
XK nodels to Britin's ¯beutilul
people" vho dine t the linest
resturnts nd schnooze t the
nost lshionble prties. in n
ttenpt to pronote the vehicle to the
velthv. Elsevhere. t prtv lor the
Council ol Ishion Designers ol
Aneric. tens ol thousnds ol
sprkling Svrovski crvstls lilled
pools on Mnhttn rooltop.
inpressing those gthered there.
DRIVIÞ FCRCE
C
rs re probblv the best indic
tors ol llluence. Therelore.
utonobile brnds vork tht nuch
hrder. Sudeep Irvn. nrketing
nd public reltion nnger. Volvo
Cr Indi. svs. ¯We clssilv HIIs bv
guging prneters such s propen
sitv to spend. the bnk blnce. credit
crd spend nd ovnership ol crs."
Volvo Indi trgets HIIs through
dtbses couired t exclusive events
it ssocites vith. The conpnv lso
get leds lron vrious ninline
nrketing connunictions executed
in ninline nd digitl nedi.
¯Since there is no ollicil
distinction betveen highspenders
spiring to ovn luxurv cr. thev ll
lll under the A1+ denogrphic
strt. But one cn slelv conclude
tht the nss llluent' custoners re
villing to pv nore lor vlue nd
hence it is MonevIorVlue nd not
VluelorMonev." observes
Irvn. He dds tht though the
HII nd rich custoners hve lr
bigger bnk blnce. thev re nore
clcultive vhen it cones to certin
spects ol spending behviour. But
vhen it cones to buving crs.
exclusive vtches nd other luxurv
brnds. thev re purelv enotionl.
Volvo Indi dvertises in lilestvle
nd luxurv ngzines. trvel
ngzines nd topoltheline
business periodicls. Its
connuniction nessge lvvs
centres on the core vlues ol the
brnd. letures nd preniunness'.
!HERE'S MY !ARE!
A
nit Rv. president. Lints Medi
Group. nkes things clerer.
vhen he observes. ¯When it's bout
nedi pln to rech the nsses. the
nunber ol heds nd individuls tht
one hs to rech is vell delined. But
vhile plnning nd plcing preni
un product in nedi. hov nnv
people one reches is innteril.
Wht becones inportnt is vhon
re vou reching out to."
This explins nedi plnners'
prelerence lor sv English nevs.
novies nd select lilestvle. trvel nd
utonobile shovs on TV. Iiche
plnning is not bout hed counts or
TVRs. It is bout creting n
exclusive ingerv tht could be
relised bv. sv. ssociting vith
shovs such s K// u|/| K:r:n or
RnJ:·as u|/| S|m| C:ru:|.
According to Rv. populr
understnding ol vht is niche needs
to be revisited in order to lornulte
the connuniction nessge nd be
in position to identilv belitting
nediun ol connuniction.
The connuniction nessge lor
the evolved. high spenders hs to be
highlv contextulised nd
connonsensicl. Advertising nd
choice ol nedi pltlorns lor
connuniction is guided bv the
notion. vhere one sks: vhere does
nv product belong?
[email protected]
"|etc|er ca¢er:|ea¢|aj el w|e| |:
a|t|e aee¢: |e |e reº|:||e¢ |a er¢er |e
lermc|e|e ||e temmca|te||ea me::eje
ea¢ |e |a e te:|||ea |e |¢ea||l¡ ||e |el||||aj
me¢|cm el temmca|te||ea.'
/¥|I K/ï, |K|'|9|NI, ||NI/' ¥|9|/ ûKûU|
"|ctcr¡ tre:tet|: ere ae |eajer jc:| ||e
:cter r|t|. I|e¡ ere e|:e ||e eae: jrew|aj
r|t| |ee w||| e treaecate¢ aee¢ ler
ettre::|ea er |a¢c|jeate.'
/'h|'h ¥|'hK/, Ch||| 'IK/I|û|'I /N9 h|/9,
W/I|K CûN'U|I|Nû
"¥er|e|er: t|c| ||j| :tea¢er: |a jrect: ea
||e |e:|: el ||e ||a¢ el ewaer:||t ||e| ||e¡
¢|:t|e¡. û||er :ctter||aj tereme|er: |||e
e¢cte||ea |ee ere tea:|¢ere¢ e|eaj:|¢e.'
¥ûN/ !/|N, h|/9, 'IK/I|û|C |N\|'I¥|NI',
|N9|/ ¥|9|/ |lCh/Nû|
"|| |: ca|||e|¡ ||e| ea ett|c:|ºe |rea¢ w|||
e¢ºer||:e ea e me|a:|reem I\ trejremme
eºea |l || we: te:| ellet||ºe - || wec|¢ ae|
wea| |e |e:e ||: 'ett|c:|º||¡'.'
K/! h/|\|, |K|NC||/| CûN'U|I/NI,
'/¥/K/ C/||I/|
"ûae tea :ele|¡ teat|c¢e ||e| ||e
'me:: ell|cea|' tc:|emer: ere w||||aj
|e te¡ mere ler ºe|ce ea¢ |eate
|| |: ¥eae¡-|er-\e|ce ea¢
ae| \e|ce-ler-¥eae¡'
'U9||| N/K/ï/N, ¥/KK|I|Nû & |K ¥/N/û|K,
\û|\û C/K |N9|/
The connuniction nessge lor the
evolved. high spenders hs to be highlv
contextulised nd connonsensicl.
\
F
|
C
l
â
|
K
|
F
9
K
I
FK|\|NI\
T
his is problen tht hndset
nkers do not lce vhile tr
geting the super rich. Ieither
do nrketers ol lst noving con
suner goods (IMCG). consuner
durbles or even linncil services.
Telecon services. interestinglv. is the
onlv ctegorv vhere there is no dis
tinction per se. in the ollerings to
custoners despite dillerence in
incone levels. Cr is there?
The verv lct tht telecon
conpnv hs nothing extr' to oller
to its high incone custoners. stens
lron the lct tht conpnies oller
brodlv tvo services voice nd text
(or video. MMS) nd neither ol the
tvo services is priced on the grounds
ol incone level. The pricing strtegv.
being clen. velllid out one.
pplies to ll. like. But do thev vnt
to trget specilic SECs?
!HE REA! LEVELLER?
I
or strters. one could begin vith
looking t the intent ol the tele
con conpnies tpping consuners
ol diverse incone level groups in
vrious vvs. Shireesh Joshi. director
nrketing. Bhrti Airtel. is cler
bout the brnd not being skeved
tovrds nv prticulr incone level
group. ¯We choose to locus nore on
the lrger opportunities. rther thn
niche ones. Tht rules out the option
ol us looking t trgeting SEC A in
prticulr. Ieither do ve vish to
uniouelv crete sonething like this."
Mss nedi dvertising bv
telecon brnds is trgeted t nd
consuned bv one nd ll. in the sne
lshion. irrespective ol their incone.
Press coverge in kev business dilies
is considered vv ol reching out to
the upper rung ol the societv. Brnds
nv hve supplenentrv plns too.
Ide Cellulr. lor exnple. prt
lron using oneonone interctions
vith its high prolile custoners.
ollers ground enggenent ol nss
events such s the Ide IIIA Avrds
(n vrd cerenonv vrding
/ ||||||/| ||J|||M
A ae|wer| serr|te |s c mcss pre4ct|. Cec|4 || |cre a|t|e ca4 |aaerc||re caq|es |er ||e 'trecm¡ |c¡er'?
I|e caswer ||es |a ||e |c|cre. 8¡ Ne|c Kc|rc
I|||C9M
\
F
|
C
l
â
|
K
|
F
9
K
I
vodafone: ßringing the
the gIobaI connect home
excellence in cinen) nd sinilr
neetndgreet hospitlitv
opportunities lor this strtun ol
consuners. Prdeep Srivstv. chiel
nrketing ollicer. Ide Cellulr
revels tht bout 100200 VIP boxes
re reserved lor select highend
custoners. chnnel prtners.
distributors nd contest vinners t
such nss events.
Sniv Behl. group hed brnd
nd nrketing. Relince
Connunictions understnds tht
nicrotrgeting custoner segnent
is integrl lor optinising nrketing
investnents on vst rrv ol
products nd services.
Relince Connunictions hs
been using conbintion ol shrplv
segnented conventionl nss nedi
pltlorns nd highlv locussed
direct nrketing pproch. lor
engging the SEC A trget group
vith its ollerings. Behl brings out the
instnce ol the lunch phse ol
Relince's vireless brodbnd
services Relince Ietconnect. It
vs lunched through the digitl
nediun nd dtbse driven direct
nil inititive. A trgeted nss nedi
pln vs supplenented vith product
denonstrtion through corporte
rodshovs in the top 45 cities nd
denokiosks in relevnt retil shops.
Kunr Rnnthn. chiel
nrketing ollicer. Vodlone Essr.
understnds tht the brnd cn
delinitelv hve segnented
enggenent trgeting vrious
incone level groups. but not
segnented connuniction.
Anvthing nore thn this provided
to snll segnent ol consuners.
vould be incongruent t the brnd
level. the obvious reson being tht
netvork service is nss ctegorv
ollering. Vodlone LK. lor instnce.
hs been the title sponsor nd ollicil
nobile prtner ol the McLren
Mercedes ten since 2007. The
brnd's connitnent to the Iornul
Cne World Chnpionship. is in line
vith the signilicnt ppel lor the
sport lor Vodlone's custoners
round the vorld. Though the sport
is considered n elite one.
Rnnthn believes tht it reches
out to verv lrge segnent.
Involving its custoners lron
Indi. Vodlone hd Levis Hnilton
ol the McLren Mercedes ten.
llgging oll the McLren Mercedes
Rce to Abu Dhbi pronotion in
Iev Delhi in August. Sixteen luckv
prticipnts vill vin trip to Abu
Dhbi to ttend the linl ol the 2009
Iornul Cne Grnd Prix seson on
Iovenber 1. 2009. The pronotion
is being run over 16 rounds.
WAI!IÞ FCR 3
A
signilicnt lndnrk in the
Indin telecon industrv vould
be the nuchvited 3G. With it. the
gne is set to chnge drsticllv in
the nobile spce. With higher
speeds. nd plush services such s
live strening ol television chnnels
(nobile TV). the SEC A clss is
undoubtedlv to be benelicirv ol
the best tht 3G vould hve to oller.
Rnnthn is sure tht 3G vill
nke vves in the kind ol services
netvork service providers vould be
ble to oller experience vould hve
nior role to plv. Dillerence in
incone levels vould be the kev
driver. The second. nd nost
inportnt lctor tht cones into
considertion vhile tking specilic
strt trgeting (in this cse. SEC A)
into ccount is the spred ol costs.
The enornous nount ol
investnents in technologv. does not
llov telecon conpnies to oller
dillerentited netvork. The svsten
nd processes hve to be gered up
lor evervbodv. vhich does not nke
it lesible option to oller nv
benelit to prticulr set ol people
on the netvork lront.
The tvo pltlorns used lor
interction on nobile phone voice
or text (video or MMS) help
telecon opertor deternine the
usge pttern. s vell s the kind ol
hndset the consuner utilises. vhich
proves s brod indictor ol the
prolile ol nobile user. ¯It is
vindov through vhich ve observe
our consuners." revels Srivstv.
Ior the rich. it is sinplv the
intensitv ol the consunption ol the
services ollered. tht vries - the
usge ol services such s voice. text.
MMS nd. nost ol ll. GPRS
(Generl Pcket Rdio Service)
through nobile hndsets bv SEC A
is conprtivelv higher conpred to
other segnent ol consuners.
At Airtel. there re nultiple levels
ol nessging text nessges re sent
in trgeted nnner vhile there is
nix nd ntch ol products nd
services ollered. Consuners re
ollered sone products nd services
bsed on their prolile. s vell s their
consunption pttern ol vrious
products nd services.
Joshi ol Airtel clrilies tht ¯there
re no big' products tht re ollered
bv us lor consuners vith higher
incones. In nv cse. nnv nore
people vill be noving into the SEC
A clssiliction in the ner luture.
bridging the gp."
Looking lorvrd to 3G. trgeting
the SEC A vould becone esv lor
telecon opertors considering the
kind ol n upper edge it vould bring
in. It could lso bring in nore
concerted ellorts lor getting the
plun udience. Hovever. the other
rules ol the gne cnnot be
overlooked.
It renins ouestion il SEC A
vould gin nore signilicnce vith
3G especillv in nss ctegorv
product such s netvork services.
[email protected]
. 8 The ßrand Reporter, 5eptember I5·30, 2 0 0 9
"Jû w||| me|e weºe: |a ||e ||a¢
el :erº|te: ae|wer| :erº|te treº|¢er:
wec|¢ |e e||e |e eller - etter|eate w|||
|eºe e mejer re|e |e t|e¡.'
KU¥/K K/¥/N/Ih/N, Ch||| ¥/KK|I|Nû û|||C|K,
\û9/|ûN| |''/K
"\e|te er |et| |º|¢ee er ¥¥'I - |e|t: e
|e|etem etere|er ¢e|erm|ae ||e c:eje te|-
|era, e: we|| e: ||e ||a¢ el |ea¢:e| ||e
tea:cmer c||||:e:, w||t| treºe: e: e |ree¢
|a¢|te|er el ||e trel||e el e me|||e c:er.'
|K/9||| 'K|\/'I/\/, Ch||| ¥/KK|I|Nû û|||C|K,
|9|/ C|||U|/K
"I|ere ere ae '||j' tre¢ct|: ||e| ere ellere¢
|¡ c: ler tea:cmer: w||| ||j|er |ateme:. |a
ea¡ te:e, mea¡ mere teet|e w||| |e meº|aj
|a|e ||e '|C / t|e::|l|te||ea |a ||e aeer
lc|cre, |r|¢j|aj ||e jet.'
'h|K||'h !û'h|, 9|K|CIûK - ¥/KK|I|Nû,
Kh/KI| /|KI||
"¥|tre-|erje||aj e tc:|emer :ejmea|
|: |a|ejre| ler et||m|:|aj mer|e||aj
|aºe:|mea|: ea e ºe:| erre¡ el
tre¢ct|: ea¢ :erº|te:.'
'/N!/ï K|h|, ûKûU| h|/9 - KK/N9 & ¥/KK|I-
|Nû - K|||/NC| Cû¥¥UN|C/I|ûN' & C|û K|û I\
\
F
|
C
l
â
|

K
|
F
9
K
I
Ior the rich. it is sinplv the intensitv ol
the consunption ol the services ollered.
tht vries. Lsge is conprtivelv higher
conpred to other segnents.
FK|\|NI\
FK|\|NI\
\
F
|
C
l
â
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K
|
F
9
K
I
|J! |J|' / ||/||ï ||/|| ||||| / ||'í|||í |M/e||ï?
9FlNl9N
A
luxurv brnd's ingerv is lnost
lvvs in extrenes. It is either
extrenelv stvlised. extrenelv bsic.
extrenelv loud. extrenelv subtle.
extrenelv udcious or extrenelv
intinidting. It tkes cler bold
stnd. so vou love it nd il vou don't.
vou nust hte it.
The TG prolile is clerlv those vho
crve exclusivitv. So. even il there is renote indiction tht the
brnd vill be populr in the nss sense. the TG vill tune oll.
Tht's exctlv vht hppened to brnds like Pierre Crdin nd
Plvbov. Cne vv ol keeping oll the spiring rvenous nsses
is price. The nonent the TG sees price tg lr bevond the rel.
vlue. thev knov tht nost sne people vill not hve it.
The other vv is ingerv. The nonent there is ingerv tht
is either too bizrre or too inconprehensible. thev knov tht
nost sne people vill not see nerit in it. There. vou've plnted
the seeds ol exclusivitv. Audcitv is the kev chrcteristic here.
The brnd nust look like it is not interested in selling nvthing
vhich nens it doesn't rellv need to sell' itsell.
Most luxurv brnd TGs hve huge egos. And this ego needs
to be nssged bv being constntlv chllenged. I did vork on
DTC Ikshtr nd Arisi The Rovl Solitire vhich vere
preniun end products. I renenber line tht epitonised vht
I n sving. It vs vritten bv the cretive ten to end the
connercil lor Arisi leturing Mhrni Gvtri Devi: You
don't choose n Arisi. It chooses vou'.
L
uxurv brnds re driven bv severl
lctors. tvo ol vhich re
dvertising nd the vv vour brnd is
exhibited in the retil environnent.
The store vindov displv speks
certin lnguge bout vour brnd.
The nnneouin. the vv dress is
drped on it. the lighting. the position.
the nbience nd setting. evervthing
contributes to the brnd's ingerv.
In the cse ol luxurv brnds it is lso the elenent ol
consistencv cross outlets round the vorld. Lsullv. these
brnds tlk to the velltrvelled custoner vho nv be in one
countrv one dv nd in nother the next. In such cse. he
should leel lnilir vith the brnd nd its ingerv vherever he
goes. Iext. elenents like the grooning stndrds ol the sles
people. instore visul nerchndising nd lorvs into relted
products helps it is then seen s conplete solutions brnd not
oneoll product. The ingerv isn't creted iust bv dvertising.
Lstnile deliverv is s inportnt s the dvertising pronise.
Iurther. luxurv brnds olten del vith dillerent psvchogrphics
vithin their TG set. Esprit. lor instnce. is preniun brnd but
ve hve slightlv vrint consuner proliles lor n ssortnent ol
products. The vorld is our culture' is our tgline nd ve use
subtle ingerv ol couples in nturl. lresh vv. The high
pricing ol luxurv brnd lso nkes it spirtionl to its TG. nd
lends n ir ol exclusivitv vhich is inportnt to such custoners.
Mking luxurv brnd too rel cn dininish its ur.
A0NI||0 0IA! Ce|eaa¢er & CO, !eaKee| la¢le
L
uxurv brnds strt lron vhere nssnrket
brnds stop. A nssnrket brnd vill studv
the gps in consuner nrket. lind vvs ol lilling in
the gps in the nost ellective vv nd vork
tovrds cenenting its plce in the gp. A luxurv
brnd is nore bout the point ol viev ol its cretor.
This is rellected in evervthing the brnd does. It is
lso bout the sttenent the brnd llovs its ovner
to nke. A luxurv brnd strts lron vhere velth
stops. Those vho re cshrich re lvvs tinepoor. And tine
povertv is the rel chllenge tht luxurv brnds hve to live vith.
Luxurv brnds. therelore. hve to hve unioue crltsnnship.
superior technologv nd n ur ol desirbilitv round then.
Luxurv is bout being pnpered. It is bout individulised
ppels. Cne size never lits ll in the cse ol luxurv brnds.
Tvo lctors re criticl lor creting ppel lor luxurv brnds:
superioritv nd experience. Luxurv brnds strive
hrd to crete leeling ol superioritv not iust
lunctionl but lso enotionl superioritv. Ior
exnple. B&C is not iust better crlted sound
svsten it is lso the nost spiredlor bdge. It tells
tht the ovner pprecites line nusic nd cretes
leeling ol superioritv lor hin.
In cse ol luxurv brnds experience ntters nore
thn exclusivitv. It is bout experience nd not
ovnership. Becuse luxurv brnds operte t the highest level ol
Mslov's hierrchv. thev hve to nke sttenent both through
ovnership nd experience. In the luture. luxurv brnds vill
ppel nore to nind thn ntter. Cocretion nd personl
cretivitv re the energing thenes on vhich luxurv brnds vill
hve to hng their hts.
[email protected]
NAkI!H 00PIA teta|l·e \ltePresl¢ea|, !|re|eelt Pleaalae, Pa|lltls la¢le
BANI0|A IIwAkI COO, sarl| la¢le
<< tes||ste¢ lrem ceje +7
This special report has been brought to you by Mint.
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