Branding in the Time of Demonetization

Branding in the Time of Demonetization

“He allowed himself to be swayed by his conviction that human beings are not born once and for all on the day their mothers give birth to them, but that life obliges them over and over again to give birth to themselves.” – Gabriel Garcia Marquez, Love in the Time of Cholera.

Business and Economics is always about adjusting to market situations and reacting to market demands. Maybe it is for the first time that both business men and economists have reacted to a situation in the same voice. Demonetization and its after effects have rattled business men and economists alike. Nobody (here it should be read as ‘those who were not big enough to get highly classified information’) knew it was coming and now most of them don’t know how to deal with it. Those who thought this was just another gimmick are now coming to terms with demonetization as a reality but still most of the businessmen I came into contact were divided in their opinion as to how to deal with it.

Accept Reality

Yes it is for real. Demonetization has happened. Whether it is good or bad for our business is unpredictable. Alas if market economics were so easy to predict then we would have got lesser number of entrepreneurs in this world. Entrepreneurship would have been boring if there was cent percent predictability in market situations. The first thing to do for any business is to accept the reality. Accept the change in mode of operations. Government is going to push digital transactions like anything, telecoms are going to push their services more, and people are going to use digital transactions more. So stop cribbing about the advantages of dealing in cash and move on.

Every disruption in the market is an opportunity

There is a popular story narrated at most management classes about the Chinese that while the US markets were reeling under the shock of 9/11, the Chinese had already started exporting caps & t-shirts with US national flag elements printed on them. Demonetization is definitely such a catastrophic event in business world which has disrupted the whole market operations. Does that mean everything is doomed? No, there will be opportunities among disruptions. The faster you find those opportunities the better. Especially in an Indian context we have smart business houses who innovate in every way to market their products. Each market within our country is unique and the effects of demonetization are different in each state and even different in parts within each state. The need of the hour is to find out which market is faring better and reach out to that set of customers. Find new markets, new opportunities, out of the box marketing techniques like cross branding and so on.

Digitalize your transactions

Yes digitalization is not a future thing but the present thing which has captivated all the markets in the world and it is transforming the way business is done. The earlier you digitalize your transactions the better your customers would stay with you.  Already the government has announced discounts & offers for digital transactions and we all know what happens when customers are lured with such bounties. The same customer who sided up with us today, the same guy who hated to use digital payments would ask us why you are not offering digital payment options. The scarcity of POS machines/ swipe machines is not an excuse you can hang upon for long. Customers are more aware of options like internet/mobile banking, paytm, mobile wallets etc. more than before and will be ready to use them more because it is not the customer who is worried about paying that extra tax on billing but the shop owners are. It is not the customer who is afraid about the source of their income while making a purchase but it is the shop owners that are worried about the consequences of under billing or low stock declaration levels. Customer loyalty starts when they get what they expect from a brand and ends when they feel they don’t what they expect. So the day your competitor starts accepting digital payments with offers, your loyal customer will be the first one to leave you. Digitalizing your transactions has its benefits. You get better customer database, can learn on the customer buying behavior and improvise your offerings at a lesser cost than before. So it’s all about adapting to the situation at the earliest and reaping the benefits of digitalization than lamenting about the demerits of demonetization.

Measure your ROI on Ad spends

As a brand strategist it is interesting to note that most of the times it is good for brand owners to face disruptions. Be it a recession or a demonetization, these are the times to retrospect and reinvent. When the cash flows are over flowing most business houses spend too much on advertising without even caring about the return on their investments in such huge advertising budgets. If there is one thing that we all agree upon it is the fact that demonetization has brought upon us, as individuals & households, a certain kind of accountability, even spend thriftiness, in our daily expenditures. The same applies to business houses. This is the time to relook at your advertisement expenditures. At the same time every business needs to market their products to grow and in these times of cash crunch it is the time to be patient about brand building activities. More importantly it is a time to measure the effectiveness of your expenditure on advertising. Whether your brand reaches out to correct target audience is to be taken seriously and the necessary changes in the medium of advertising is to be made. Gone are the days of mass marketing only through print & TV. Other media vehicles on the Internet like social media, blogs, YouTube are all now part of daily life of an average customer and more importantly we are going to see mobiles playing a major part in marketing your products. Still except from big corporates, we see very little branding activity on those frontiers like mobile apps, mobile games and virtual reality from smaller entities. Make sure your marketing communications break the clutter. Use innovative and creative approaches to your marketing communication. Go back to your basics, call your loyal customers one by one and inform them about the new mode of transactions. Help them if they need help in moving to digital transactions. Forget those days when you had lots of unaccounted money to do mass advertising. Revoke those old days when you talked to your customer directly. Maybe relook your product packaging and renew it with new digital windows like QR codes, bar codes etc. Get online to reach out to new customers.

Love in the Time of Cholera

Use this period to understand your employees and customers. Love your employees more, love your customers more. Make the ambience of your store or appearance of your product more appealing to them. Use this period to build your brand and reach out to untapped markets. If you can come out in good shape after this demonetization period you are well equipped to fly higher.

Advertising makes this world a better place to live in

Yes.  Advertising does bring about positive changes to the world around us

Every now and then we stumble upon debates on TV where they fight out like cats and dogs on issues both trivial and significant. At last the so called experts reach on an agreement – Yes Advertising & Films are the culprits for all the evils in the society.

Always on the wrong side of the table it’s high time someone stood up for the ‘Advertising Professional’.

Yes Advertising has changed the world we live in.

For hundreds of years advertising has contributed its part in changing the world around us. Whatever may the critics voice against advertising they can’t take away the contributions of advertising in making people’s life more easier, providing information to the consumer, making the consumer more powerful, providing solutions for marketing problems, innovating products & services and last but not the least uplifting the less privileged people.

We provide solutions: Even if an advertising campaign provides a wrong solution let us make it clear – we don’t create problems. Problems are created by the marketers themselves and we at advertising try to solve those problems, it is not the other way round. Most of the times it is an idea from an advertising company that provides solutions for a problem faced in the society or in a market.

We do influence that too in a positive way: Never ever in the history of advertising have someone created a product successful through negative communications. So atleast for once please own up for our own cravings for over consumption, for our own stands & beliefs  getting influenced in a negative way just through an exposure to an advertisement of a product or service. If it was so easy to influence people out there, advertising would have been extinct as a profession or the world would have been a better place to live in by its own. As advertising professionals we are hired to find something positive about a product or service, not the opposite.

We do inform and help consumer: Without advertising, people might not have found how to use oranges in juice form or how to use even a safety pin. Yes it’s true. These are not exaggerations but facts that you can browse yourself to find out how advertising have passed on information about innovations over all these years. Every day it is through advertisements, whatever be the medium, that consumers find out new ways to use an existing product/service or find out entirely new products/services. Also let us be clear about one thing- If we see misguided information about products, those are the works of such people in advertising who doesn’t know the basics of advertising. No product can be successful in a market over the long run through misleading advertisements. Transparency is what makes all those brands standing out there facing all weathers. Just because there are some scrupulous doctors out there we don’t blame that the whole medical profession is without ethics, do we?

We are always innovating: Every now and then it is advertising professionals who find innovative ways to a marketing problem and often entirely new products are devised by marketers from an idea borne out of an advertising professional’s brain. Innovative applications of existing products have helped people out there and not to mention the innovations coming out in service sectors. It is we advertising professionals who most of the time has to fight it out in board rooms of corporate companies to include an additional service or something out of the usual for the customers.

Yes we change the world: A good advertising is the one which makes way into people’s hearts. World over we have lots of examples where advertising have changed the people’s lives for good. Even a bus shelter made by a brand is a contribution towards the society. And be reminded that most of such activations are proposed by advertising companies not only because they are needed for the brand to reach its customers but also we too try our level best to give something to the society while using such advertising methods. Be it a brand raising awareness about cleanliness in Rajasthan through product sampling within a village festival or be it a government using advertisement campaigns to raise awareness about the need of vegetable cultivation, we as advertising professionals are involved from creating such an idea to making it reach among people. Especially in this age of CSR initiatives gaining importance in marketing mix of a company, we in advertising world are the happiest folks as now we can propose novel methods of sponsoring initiatives for uplifting the less privileged people using corporate money. Earlier we had to fight it out with our clients to allow us such proposals in our strategy.

Yes we do our bit to change the world within the limits of our profession just like the ones who sit there and debate on the floor of a TV channel. Just like any Doctor, Lawyer, IT guy, Mason or a Carpenter we in advertising world do care about the public. Sorry friends we have to find the real culprits for the evils of the society, maybe through individual introspection. Till then leave us alone. We are bent upon finding positive elements in a product, service and the society as a whole. Let the debate continue instead of using us as a reason to end your discussions.