The mood of India

…in times of recession, thereby implications for Marketing

The overriding scenario

• Global economies mired in a consumer spending driven recession

• We are on the verge of a potential fundamental shift in how consumers shop & buy

• Consumers fulfilling basic over discretionary needs– Big investments are on hold – cars, property

• The ability to understand consumers, categories, channel, media in increasingly granular levels is where lies the insights to reveal opportunities to drive success

• The last year’s upswing mood has been replaced by caution

• Will have a direct impact on the way brands will interact with the consumer

Now More Than Ever, Focus Must Be on the Consumer

EconomicPressures

Forces at Work…Consumer Wallet Pressures

Lower Spending Power

• Home/stock portfolios losing value

• Tighter credit• Existing job income flat• Unemployment rising

Rising Costs

• Personal debt servicing• Home energy• Transportation• Household expenditure• Medical• Education

How Are Consumers Reacting?

Overheard Across the Globe…

I now go to Aldi’s. It’s so cheap my girlfriends have also changed, so it’s not just me… Also I buy the cheapest in everything except foods &

shampoo

Down trading on stores & brands

We eat out less & cook more… still buy chocolate & wine thoughThe Netherlands

Struggling for a sense of normality

We watch more movies at home, more board games – I bake a lot

more. It’s really hard to eat healthy though, when you are trying to save

money

More cocooning in home

Controlling usage- Back to basic, familiar brands

I try not to stock up. Just buy what I need

for the month… Across countries

I buy more frozen foods… I can control how much I use & I don’t

waste anything UK

I used to have 2 cups of coffee at Starbucks everyday. I’ve stopped

that as well as my weekly manicure.

The Latte Effect

I make inventories of what’s in the kitchen & try to use everything I have

before buying more. I wait for the sales & stock up.

Depleting Inventories

Lateral shifts in categories

I don’t experiment with new items… which I used to

before. I just buy something familiar…

Across countries

Source: Nielsen DeltaQual: Qualitative Feedback from around the globe, 4Q2008

So how should marketing react

…a few tips

MIRROR MIRROR ON THE WALL…

In RECESSIONA lot of changes will be

driven by the consumer’s

PRIORITISATION

INERTIA

INCOME

SO HOW SHOULD MARKETINGRESPOND…

“Half my marketing

expenditure is wasted but which half?”

Everyone is trying to get a piece of the pie

MIRROR MIRROR ON THE WALL…

Media

Promotions Packaging

New launches Production

Creative agencyMarket research

Online

MIRROR MIRROR ON THE WALL…

PRIORITISATION

INERTIA

INCOME

WHAT ARE WE HERE FOR

Businessline carried an article on ‘Fight fear of recession first’ for marketers in December 08

What will help to break the INERTIA

Mega Brands will have to share the social responsibility to convince the consumer to step out

his ‘cautious’ mood

Need to drive him out of this sub-conscious mindset

Convincing to be done at a more interactive level

‘unique’ one-on-one level(Multi sensorial)

Multi-sensorial Marketing

Emerges an efficient role of getting into a direct interface with the consumers

Stronger role of ‘Direct’ BTL interactions

How does Laetitia come into the picture

Our core strengthDIRECT INTERACTIONS through

effective touch-points

Effective interaction points

Laetitiaconnect

Clubs/Restaurants

5 Stars

Cross Promo Brands

New New MediaMedia

Credit cards

Cab Advertising

BPOsFarm Houses

Shopping Malls

/ Cineplex

Laetitiaconnect

Connect with consumers through

these effective interaction points

NEW MEDIANEW MEDIA

Presenting the most IMPACTful

and a never before used concept in India

PresentingPresenting

THE HOT AIR – AIRSHIPSTHE HOT AIR – AIRSHIPS

CREATE HISTORYCREATE HISTORY in India

one of the MOST POPULARMOST POPULAR means of advertising worldwide

generate a tremendous amount of free spin

HUGE MEDIA COVERAGEHUGE MEDIA COVERAGE in addition to direct visual advertising benefits.

the MOST INNOVATIVEMOST INNOVATIVE solution to make an impact on public consciousness.

carrying the messages of an increasing number of forward thinking companies.

A CORPORATE SYMBOLA CORPORATE SYMBOL – 90% brand awareness generated

Picture: Actual Air-shipPicture: Actual Air-ship

Presenting the most IMPACTIMPACTful and a NEVER BEFORENEVER BEFORE used concept in India

THE HOT AIR – AIRSHIPSTHE HOT AIR – AIRSHIPSone of the MOST POPULARMOST POPULAR means of advertising worldwide

With a scope of HUGE MEDIA COVERAGE HUGE MEDIA COVERAGE in addition to direct visual advertising benefits

the MOST INNOVATIVEMOST INNOVATIVE solution to make an impact on public consciousness

Get the FIRST MOVER ADVANTAGEFIRST MOVER ADVANTAGE

Huge IMPACT / VISIBILITYIMPACT / VISIBILITY of a branded flying ship (110 ft * 30 ft dimension)

Can be utilized in promotions / contest / ATL shoots

Can be tied up to complement the existing ATL plan

Benefits can be maximized with an ability to create a maneuverable flight plan (unlike a hot air balloon an airship is steerable

and can take off and come back to land at the same location)

Other Media

CAB Advertising

• A new concept of Advertising• Most Cost Effective Medium• 1000 Cabs Pan India

• Opportunity of STILL ADVERTISING i.e. (Backlit Rooftop Display, Inside Door Strips, Door Panel (Vertical), Ceiling panel, Leaflet Holder, Display Board, Rear Curtain, Panic Button Circle & Side view Windows) and MOTION ADVERTISING i.e. (PIM – Passenger Interactive Monitor)

• Touch Screen LCD Monitor where Passengers can have Interaction as well as entertainment. It can be used for commercials, online polls,

informative entertainment and Route Navigation.

List of Events

Our think tank has over the last one year created

a pool of unique, never before event a pool of unique, never before event concept based on the existing concept based on the existing

consumer insightsconsumer insightsWe shall be looking forward to presenting them to you

Commercials

Operational Benefits

• Maneuverability (unlike hot air balloon)– Can be driven/steered– Speed upto 60kmph

• Flexibility– Can be uninstalled and carried easily from one point to

the other– Can fly upto 3 hours / day

Cost heads• Fixed Cost – Airship

– Getting of the airship– Government approvals– Cost of Branding

• Operational Cost – Pilots and etc Crew– Hourly flying charges– Installation Charges– Maintenance charges– Transportation from one place to another place– Over heads and Marketing cost

• Actuals– Travel, food & stay of the crew

• Subjectivity: minimum 90 hours of flying

Cost

3 crores for 3 months (90 hours)

Launch time 2 months from the date of Confirmed PO

Thanks