Droga5

I have had the opportunity of listening to David Droga for the first time in 2003 at AdAsia in Jaipur where he showcased some of his work. He, i believe, belongs to a different breed of advertising professionals who are ready to break the usual shackles and do stuff that is out of the ordinary. Droga quit his assignment as creative head of Publicis in 2006 to start his own agency, Droga5. This article in Economic Times - Brand Equity talks about his journey and reasons to form his own agency.

You can also check out case studies on his recent work at the new agency and the kind of work Droga5 aims to do.

How Steve Jobs prepares for his key note speeches

I regard Steve Jobs as one of the best Marketers along with Richard Branson. He is not only a creative genius but also a visionary in the true sense. This article written by one of his former colleagues, Mike Evangelist, describing his experience on working with Steve Jobs on one of his keynote speeches. For those who have not been exposed to this earlier, these speeches are an event in themselves, delivered in large auditoriums to a packed audience of analysts, nerds and Jobs/Apple die-hard fans. They are also put live on the Internet and watched by thousands of geeks. What goes into preparing these keynote speeches is any day worth learning and probably everything one needs to know on how to prepare for a 'standing ovation'.

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I have another treat for you. This is a video of one of Steve's keynote speeches and it's the one where i-Pod was launched. Enjoy!!

Defining the box!

‘Thinking out of the box’ is a phrase you might have heard or used many a time. However, no one elaborates on what exactly he/she means when they use the phrase. Everyone wants to be creative and a problem solver, however the essential question that is left unanswered is whether one needs to be a born genius to be creative or is it something that can be learned. Well, some of it is in your DNA but most of it can be honed over the years through exposure and experimenting. But how does one start? Not by imagining the box of course.

The Russians had developed a technique called TRIZ (a Russian acronym meaning Theory of Inventive Problem Solving), which looked at patterns in the way innovations take place. 400,000 patents were studied to look for these basic principles and patterns. Organizations across the world like Motorola, Proctor and Gamble, Xerox, Kodak, Hughes, Samsung, AT&T etc. use TRIZ as a method of solving problems and driving innovations.

TRIZ uses complex models and patterns that require use of specialized software. The American Society for Engineering Education came out with a simpler 8-dimension concept that can be used easily to solve everyday workplace problems. The recommended process is as follows:

First identify and define the problem by using ‘5W’s and H’.

W1. Who has the problem?
W2. What does the problem seem to be? What are the resources?
W3. When does the problem occur? Under what circumstances?
W4. Where does the problem occur?
W5. Why does the problem occur? What is root cause?
H1. How does the problem occur?


Now analyze the problem on the following 8 dimensions. The options / answers generated could more often than not give you the solution.

UNIQUENESS
§ Determine what does not change (e.g. the law of gravity)
§ Look for the distinguishing factors (USPs)
§ Magnify the differences (e.g Diet Coke – 1 calorie).

DIMENSIONALITY
§ Simplify – how would it appear to a non-involved person (a layman)
§ Time / Space / Interface / Cost etc. manipulation

DIRECTIONALITY
§ Work forward / backward (e.g. parking your car)
§ Work multiple ways (electronic goods working on both battery and electricity)
§ Find a better path to reach the same goal ( e.g. re-routing of phone calls through exchange)

CONSOLIDATION
§ Combine (e.g camera + cell phone + music player)
§ Find multiple uses of the same thing (Mobile SIM card also used for making payments)

SEGMENTATION
§ Divide / separate (Marketing uses this concept beautifully to segment markets and customers)

MODIFICATION
§ Rearrange (the fashion industry is known to apply this to bring old trends back into vogue e.g. Jeans are back in fashion today)
§ Extract unnecessary elements (e.g. sugar free, cholesterol free)
§ Substitute (e.g. plastic with Teflon, steel with aluminium in cars)
§ Add – overall / in between (e.g Gillette - Sensor excel & Mach 3, 2 & 3 blades respectively)
§ Alternate use / application (e.g washing machines used to make ‘lassi’ in punjab)
§ Automate (e.g. push button start bikes v/s kick start ones)
§ Purify / filter (e.g. Speed, Xtramile brands of petrol).
§ Self modification – in situ (e.g. curd from milk, fermentation technology to make spirits)

SIMILARITY
§ Look for patterns (e.g video games)
§ Combine applications (e.g. pen that can also function as a stylus)
§ Old principle – new application (Old wine new bottle principle – music remix, remake of old movies)

EXPERIMENTATION
§ Simulate
§ Estimate / hypothesize and check.
§ Wild guess!


And before we close, a supposedly true story. Americans and Russians were both in the quest for putting a man in space. The Americans were busy developing an ink pen that could work in space without leaking. A NASA scientist was once describing the difficulties they were facing to a Russian scientist and inquired how they were trying to overcome them. “We use a pencil”, the Russian replied.

Happy thinking!

Bhel puri ?

I had met a German guy while travelling some time back. He was in India for making a short film on Indian movie stars. The theme was how a movie star shuffles between identities while acting in multiple movies at the same time and still is able to retain his own (?) without getting influenced by any of the characters in his movies.

This he said wasn't much of a problem in the west (read Hollywood) as a movie star normally does only one movie at a time. In fact his contract doesn't allow him to do any other ventures.Quite an interesting theme i must say. I told him that not only do the actors here act in multiple movies at a single time (with diverse roles) but do multiple roles of a college teen, father and maybe even the grand father...act, dance,do action scenes, make people laugh n cry ....all in the same movie !!

Hollywood has genres, romantic, action, thriller...but we Indians want everything of that in the same movie from the same guy...whew !This also speaks a bit about how we think as a race....think of the languages, cultures and religions we follow. We, I'm sure, must be the only ones to invent something like a 'bhel puri'. This goes in our normal diet as well. We want bread (rotis), vegetables, dal, rice, aachar, papads, raita, curd...everything at the same time.

Isn't that unique in some sense ? and what does it say about us culturally?

Brand Convergence

This article of mine was first listed on Interbrand's http://www.brandchannel.com/ in Nov. 2006. It was republished in TOI group's Retail Biz in Jan. 2007


It was also a recommended link on Urbanhonking's Co-branding discussion. There are some other good links as well on this site.

Marketing to the affluent class

This article of mine is a revised version of the one first listed on Interbrand’s brandchannel.com in June 2006 and was published in Images Yearbook 2007.

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Rich and mass-affluent customers are driving business for many industries including fashion, jewelry, automobiles, real estate and even banking & investments. The future growth from these segments is expected to come primarily from the emerging markets like India, China, Asia-pacific, Brazil etc in addition to the developed economies of US and Europe. In a survey conducted by The Knowledge Company on Indian affluent consumer (India Luxury Trends 2006), it was found that these consumers earning over INR 4,500,000 spend INR 400,000 or above on luxury goods. The highest spends were on categories like jewelry, clothing, digital accessories, timewear and cosmetics. The number of such consumers was estimated at one million, a number that is expected to treble by 2010. According to market estimates, the Indian market for luxury goods and services, currently pegged at INR 1,500-2,000 crores is likely to grow at a rate of 15-20 per cent every year over the next five years. This is owing to strong economic growth and emergence of neo-money clients who are ‘cash-rich and time-poor’. The attitude and behavior demonstrated by this segment is quite different for certain instances as compared to the traditional money clients. There are however certain things that run common and can serve as guidelines for marketing to this class of customers.

Before talking about marketing to these customers it’s extremely important to understand the segment well. Their age, income levels, occupation etc. helps to filter them from rest of the lot. It is however their behavior and psychographics that really matter in striking the right chord with them. What do they wear, where do they buy, how do they think, what matters to them, where are they seen or would like to be seen etc. is extremely important to get this understanding right. Let’s look at some aspects that can help us in this regard:

Ø Affluent customers want to be distinguished from the crowd – They only want to be seen at certain places, using only certain brands. Not just that, they want to be a step ahead of the crowd and look up to brands to identify the key trends for them and help them access/buy these before anyone else. Fashion shows are an attempt by luxury & fashion brands to define what’s next and help the customers access it.

Ø They seek exclusivity - Exclusivity is a big hit with these customers and therefore ‘limited editions’ or ‘only for select audience’ are tactics that certain luxury brands use for their brand extensions. They want access to the most exclusive brands and finest quality. They have a passionate desire for the best things in life. In fact snob consumers perceive price as an indicator of exclusivity and avoid using popular brands, a trend labeled as
‘Uber-Premium’ (exclusive products for status craving consumers, something out of reach of most). A separate store entrance or exclusive outlets, exclusive areas, different branding, very fine décor and ambience, differently dressed personnel servicing them can be used to provide this sense of exclusivity.

In fact the single most important reason for luxury retailing not taking off in India according to ‘India Luxury Trends 2006’ is the lack of luxury retail environments. Existing retail formats in this segment are either in 5-star hotels or as standalone stores. This has however started evolving. Brands and retailers have appreciated the importance of having retail formats catering to the affluent class of consumers. Shoppers' Stop is planning to enter the luxury retail segment with large format properties retailing a range of products from many well-known luxury brands. It has been reported that each of these stores would be spread across 1.2 – 1.5 lakh sq. ft. and will showcase more than 40 global luxury brands, including Louis Vitton, Gucci, Zegna, Hugo etc.


Ø They want to feel unique and special – Personalization of products and services helps to provide these benefits. Brands need to recognize this hidden desire and offer them products that help them achieve it. In the luxury market, high service levels are a given. Consumers are today more individualized than ever seeking goods and services that will satisfy their unique needs, a trend that will only catch on. In fact the Time magazine’s person of the year 2006 is ‘YOU – the individual’.

Ø They seek convenience - Affluent customers value their time as much as their money, making convenience fundamental to success in this market. Kingfisher First offering a mix of exclusivity, convenience, comfort and service has been quite successful in getting the consumers’ attention and creating a niche for itself in the air travel space.

Ø They are willing to pay a premium - They want the best quality, exclusivity, satisfaction and outstanding customer service. Brands that wish to target affluent customers will have to upgrade the quality/caliber of every person who represents them in the market or has any level of interaction with the customer.

Ø High involvement buying behavior – Marketing to affluent customers generally involves selling high-ticket items where the degree of engagement with the client also needs to be high, as most times these purchases are a reflection of the person’s self-concept and have strong self-expressive benefits. The buying decision tends to be more emotional with a touch of rationality to justify it to self and others. Making buying an experience in itself is the key here, something done well by retailers like Neiman Marcus.


Even in the case of emerging economies, these consumers are exposed to the best and most exclusive brands given their inclination to travel across the globe and own the best money can buy. The challenges therefore in the home markets are no less daunting than those in the more developed economies as far as these consumers are concerned. The best way to start therefore is to understand what has happened is the other parts and adapt it to the current environment. Basic human behavior and emotions seldom differ wherever one goes. Adaptation is however a tricky proposition and ‘cultural sensitivities’ need to be taken care of, a ‘cut-paste’ job is not very likely to yield results.


How can brands target these customers?

One point of essence is that it’s extremely important for the brand to have a clear positioning and the image in the minds of the customers, with efforts to keep reinforcing and refining it. Tag Heuer, Rolex, Cartier are all luxury brands but they have different positionings. Consistency in communication efforts plays an important role here and strong brands usually are protagonists for something that is of value to the customers. Celebrity endorsements or as brand ambassadors is also used by some brands like Armani, L’Oreal, Swarovski with good effect.

Though there cannot be a one-size-fits-all kind of an approach to reach out to affluent customers, ones that could be used beyond traditional advertising are:


Ø Direct Mail: Enormous efforts and thinking need to go in selecting the correct list. Equally important is the aspect of creating the mailer – the headline, copy, visual, production quality etc. and above all, the offer (don’t talk price, talk value). In fact Direct Mailing can be an important marketing tool for brands that don’t advertise or advertise only to create imagery.

Ø Endorsed mails: Mailers from brands whose services / products they already use make the maximum impact in terms of the communication being read and carrying the right kind of associations. It also takes away the apprehensions of these customers of being on unsolicited mailing lists, which only harms the brand.

Ø Referrals: Referrals from existing customers willing to share details of people they know who would be interested is the most tried and tested method of getting access to new clients. These customers may not mind their name being used to make contact with the reference (one needs to take permission) and at times act as your best ambassadors. The phenomenon of word-of-mouth can be very effectively used as a marketing tool here and the brand has to proactively manage it.

Ø Pull marketing: Show them benefits of your offering and tell them how you can create value for them by giving them convenience, personalized attention, exclusivity etc. Let them have a taste of it with no strings attached by inviting them to your events, launch parties etc. The idea is to make them aware of the need and giving selling a more consultative approach.

Of the emerging trends and concepts in this space ‘Massclusivity’ (exclusivity for masses) holds a lot of relevance. Luxury in itself has a certain sense of status attached to it. With concepts like ‘affordable luxury’ and the rise of the middle segment (mass affluent) consumers, luxury brands face a challenge to maintain their image and what they stand for. Constantly renovating themselves to stay relevant and being creative about everything they do could be a possible answer.

Happy marketing!