What determines the way a product is launched and what it achieves for the marketer? High budget blitzkrieg, soft launch, digital only launch... which works best and when? Henna Achhpal decodes the dynamics of a product launch
According to a report by Neilsen in November 2013, at least 90% of new product introductions worldwide fail in the year they launch. If that wasn’t threat enough, one of the biggest challenges the launch campaign of a newly launched product faces in these times of short attention spans is to ‘stand out’. With multiple brands from the same category vying for the limited attention span of a consumer, what works best for a new product? To tackle the problem, some marketers create a new product category altogether while some choose to remain exclusive with a limited launch. Some hand the product over to the consumer for endorsement whereas some take the risk of ditching all traditional media for a purely digital launch.
HOW DO MARKETERS DECIDE ON THE SCALE OF A LAUNCH?
Some products are unveiled at a press conference, some come along free with another product from the parent brand and then there are those that build the consumer’s anticipation in phases leading to a grand launch. What factors help a marketer decide the scale of a new product’s launch? Pravin Kulkarni, General Manager-Marketing, Parle Products says, “A marketer opts for a soft launch when market variables such as price and format need to be tested.” Sunil Kataria, Chief Operating Officer, Sales, Marketing and SAARC, Godrej Consumer Products Limited (GCPL) agrees: “It is ideal when you’re trying to optimize the market and learn a bit more about actual consumer experience. Sometimes market research does not tell you everything.” In the case of an aggressive launch, Kataria says a lot depends on the potential of the product. He says, “If we believe we have a product that has the ability to create a huge differentiation and discontinuity in the market, we go all out with its launch. If it has a strong and competitive advantage, it is only sensible to leverage it before your competition can catch up on you. For example, the Godrej Expert Riche Crème created a big discontinuity in the market. Other hair colour products in the market came in two tubes, it was the first time hair colour was made available in a sachet format and at a price point of Rs 30. After a gap of about 18 months, all the other players copied us. That gave us the differentiation and competitive advantage.”
Something similar happened when Maybelline’s BB Cream was launched in India, says Leena Shoor, General Manager-Marketing, Maybelline India. “We were the first to bring BB cream to India and other brands soon followed. In 2013, while they were still catching up with the BB game, we launched the BB stick,” she explains.
In an age when even entertainment needs to be packaged and marketed, the launch strategy is a bit different from what FMCG marketers do for Nikhil Madhok, Senior Vice President- Marketing and Programming, Star Plus. Says Madhok, “At Star, our approach is to look at two things — are we looking to attract new audiences to our channel for a particular show or are we looking to strengthen loyalty amongst existing viewers? In case of the latter, we essentially market the show on our own channel and at best within the network, which itself is very extensive. When we predict that a show has the potential to reach a different set of audiences, that’s when we spend beyond the network.”
OBJECTIVE OF A LAUNCH CAMPAIGN: HIGH IMPACT
“The main objective of a launch campaign is to generate quick awareness which will lead to trials,” says Mallikarjunadas CR, CEO, India, Starcom MediaVest Group. “The media mix must aim for reach, fast buildup and saliency through sponsorships leading to high impact. Regular advertising is mostly about sustenance. The brand knows it has a consumer base, so it’s only about reminding them to come back and buy the product.”
According to Debraj Tripathy, Managing Director, Mediacom, “Earlier, TV and Print were the ideal mix for a launch campaign. Now there is no specific medium. Most FMCG campaigns revolve around TV or Digital. In case of automobiles and white goods, it is Print or a mix of TV and Digital.”
When planning a launch campaign, the first step is always analysing gaps in the existing market, says Harish Bijoor, brand strategy specialist. “Filling those gaps and fulfilling the need of customers that is perhaps not being met by other brands then becomes the strategy of a brand’s launch campaign,” he explains. With several brands launching and re-launching, Bijoor finds the current market scenario robust with constant brand activity. But soft launches do not work in India anymore, he feels – the only way for marketers is to be aggressive. He explains, “About 20 years ago, it was easier to launch brands because clutter was low. Today, a soft launch gives ammunition to your competitor as you spend little but expose your ideas.”
The only way for a high decibel launch to work is outdoing the market leader. Bijoor says, “A new product will need to spend at least 2.2 times the amount of money spent by the market leader on its marketing initiatives. High decibel launches work, which is why so much spending is focused on new brands.” As competitors in the market rise, brands are realizing the importance of high budget launches. Talking numbers, Bijoor says, “At this point, launch campaigns tend to front-end marketing expenditure. A brand will mostly likely spend 65% of its marketing budget on launch campaigns and marketing for rest of the year will depend on the remaining 35%.” The key is in setting the right success metrics or Key Performance Indicators (KPI) for a product launch, says Shekhar Banerjee, Senior VP and Head of Madison Pinnacle. “You don’t get mangoes on an apple tree. If you continue evaluating Digital to drive engagement, the scope of the medium won’t be right. But if KPI is to drive launch awareness, you will have to set tougher ROI metrics for digital media also. You then cannot evaluate it by likes or mentions; your deployment strategy changes and you measure ROI on the basis of its impact on consumer metrics and eventually sales,” he says.
It all comes down to effectiveness of the campaign which is determined by brand trackers, adds Tripathy, saying, “Success is measured by tracking the brand in terms of specific key objectives such as sales, spontaneous awareness, unaided awareness, etc. Ultimately, the campaign must result in sales, leads or enquiries.”
SOME PRODUCT LAUNCHES THAT STOOD OUT RECENTLY
Here, we pick out some launch campaigns that made more than just an impression in the recent past, not only making the brand memorable for consumers, but truly standing out in marketing handbooks.
EXCLUSIVELY ONLINE: Moto G on Flipkart
For a brand that was returning to an extremely competitive market after a hiatus of almost two years, many wondered whether it was wise of Motorola to launch its eagerly awaited Moto G in India exclusively on e-commerce portal, Flipkart. However, the revolutionary numbers were enough to leave sceptics gaping. Ravi Vora, Senior VP-Marketing, Flipkart says, “Motorola believed in the idea of disrupting the market with an innovative model. E-commerce has become mainstream in India; people are confidently buying online without the need to touch and feel the product. An online only model fulfils the customer’s needs along with bringing the manufacturer’s cost down, which would otherwise be spent on distribution. Launching online allowed Motorola to price the product below what they had planned, giving the phone appeal and leading to much larger numbers than originally envisaged.” Apart from costs, Vora says an online model provides the manufacturer a readymade consumer base. He explains, “We have 2.5 million fans on Facebook, a captive customer base of 10 million along with 17 million registered users. We provide a readymade reach, saving the manufacturer a lot of marketing dollars.” As for the benefits to the portal, Vora says, “An exclusive launch gives us the larger share of the market. By associating with the right brands, consumers prefer your portal over others that don’t provide such exclusive products.” On the possibilities that e-commerce has opened up for brands launching new products, Vora says, “E-commerce has allowed new brands to significantly cut down on their upfront investment. We bear most of the risk in a launch when it comes to inventory planning or distribution. It solves a big headache for them of distributing the right quantities across the country. You won’t know how much to keep in Rajasthan versus how much to keep in Assam. Now you can distribute that load in one place.”
Campaign Effectiveness
• Traffic to Flipkart on launch day was twice that seen on other days
• 67% of traffic was driven by Moto G
• Page views increased by 100% during the launch
• Moto G’s page saw 1 million page views on launch day
• Flipkart received close to 20,000 queries on Moto G alone
• On the day of the launch, Flipkart’s total mobile sales were 5x of previous daily mobile sales
(Data as received from Flipkart)
PURELY DIGITAL: Maybelline India BB Cream
Maybelline India is one of the few brands that have leveraged digital to its full potential. Among its many campaigns, the most prominent is the launch of Maybelline India’s BB cream that ditched all traditional media, using only the digital platform. Pratik Gupta, Director, New Business Innovation and Co-founder, FoxyMoron, which executed the campaign, says, “The client as well as we, the agency, wanted to see what return on investment we could get via a purely digital campaign.” Foxymoron leveraged the age old ‘battle of the sexes’ and created a tongue in cheek WTF campaign — Women Take Forever (to get ready). The first phase of the campaign had men voicing what annoyed them most about women on a special Facebook page while Twitter was abuzz with #BeforeWomenGetReady. In the second phase, these responses were shared with women on Maybelline India’s Facebook page with a solution – go ‘NUDE’ – a statement as well as the tone of the BB cream. Finally, the product was revealed on an app created by the agency which required users to unlock the image of the new product, one pixel at a time. On the effectiveness of digital for launching new products, Gupta says it provides minimum wastage of media to the client. He explains, “The one TV phenomenon is massive in India so a lot more people end up seeing an advertisement not meant for them. Digital allows the brand to micro-target its audience, engage and have conversations about the brand proposition.”
Campaign Effectiveness
• Increase of 1,00,000+ fans on Facebook
• Trended on Twitter with 6 million impressions
• Digital reach of 13 million+
• PR reach of 4 million+
• 50 press coverage across print and online
• 2 million+ blogger reach
• Sold 75,000 units in a month’s time
(Data as received from Foxymoron)
MARKETING ENTERTAINMENT: Mahabharata on STAR Plus
As if the Rs 100 crore production tag was not enough, marketing for the launch of Mahabharata on Star Plus too was a unique proposition. Says Nikhil Madhok of Star Plus, “The idea was to surprise audiences wherever they saw the show’s promotions.” Mahabharata-themed museums were set up in malls for two weekends, showcasing weapons and jewellery used on the show. A ‘Mahabharata Museum on Wheels’ reached smaller towns in the country. Since youth was the focus of the campaign, colleges across cities were targeted where virtual wardrobes were installed in which youngsters could see themselves on a TV screen dressed as characters from the show. In all, the outdoor campaign covered around 100 cities across the country. Five character-centric TVCs were created while a mobile app with audio verses from the epic was also launched. Madhok says every medium was disrupted to grab the youth’s attention. He explains, “The objective was that the youth should be able to relate with the show even though it’s mythological, which is why technology was heavily used in promotions.” Madhok believes digital is the next important medium for the general entertainment channel. He says, “With other media like Print, Outdoor or Radio, you end up reaching a subset of viewers that you would anyway reach through your network; so we use those for amplification of the message. Through our digital marketing campaigns, we reach out to incremental audiences which may not be present on our channel or may not be as engaged.”
EXPERIENTIAL MARKETING: Ford EcoSport Urban Discoveries
Ford’s EcoSport piqued interest ever since it was first showcased at the Delhi Auto Expo in 2012. Going away from the traditional route of celebrity brand ambassadors, Ford passed on the brand endorsement for EcoSport to the consumer. Vinay Piparsania, Executive Director, Marketing, Sales and Service, Ford India, says, “Today there is far more credibility when real people talk about their real experiences. Social media has boosted the role of traditional word-of-mouth communication.” The experiential campaign invited registrations from across the country on a microsite. Participants were asked to describe a unique and uncommon location from their city. Thirty-five participants were selected for the first round on the basis of votes gathered. The selected participants then explored their city in a Ford EcoSport along with two friends, ahead of its market launch, and captured the experience on camera, subsequently sharing it on their respective social media channels. The team that gathered the maximum followers, votes and engagement for their urban discovery eventually won a brand new Ford EcoSport. Along with social media, the campaign made use of Television, Radio and Print to further amplify its reach. The brand roped in RJ Mantra who blogged about his long distance trips in an EcoSport, encouraging participation from the TV and Radio audience. Piparsania explains, “We wanted consumers to experience the SUV even before the official launch so that they could share their opinions with their social circles. Ecosportdiscoveries.co.in received over 8,00,000 site visits, 80,000 registrations and over 6,00,000 video views.”
CREATE YOUR OWN CATEGORY: Godrej Expert Riche Crème
Aggressive campaigns apart, another way to grab eyeballs is to introduce something that’s never been seen before. Sachets of shampoos and conditioners are common, but hair colouring has always been considered a fussy and expensive activity. With the Expert Riche Crème, Godrej created a new product category altogether by introducing cream-based hair colour available in easy-to-use pre-measured sachets at a competitive price of Rs 30. For the launch, the brand’s creative agency, Creativeland Asia, created the ‘Ohh My God’ marketing campaign which saw actress Perizaad Zorabian in the role of a mother hesitant to colour her hair. Her daughter then introduces her to the new product, explaining its features and benefits. Godrej Consumer Products upped its marketing expenses by 48% in the last quarter of 2012, the year that saw three new launches — Expert Riche Crème, Hit Anti-Roach Gel and Aer Click, all innovations in their respective categories. Says Sunil Kataria, “The key for us is not spends, but innovation which we plan to back with the right kind of investment.”
CHALLENGING MONOPOLY: DNA
In mid-2005, Mumbaikars woke up to about 150 hoardings and about 100 bus shelters across the city showing close-up images of individuals from several walks of life with a silver tape across their mouth. The hoardings weren’t supported by words or even a logo. To further leverage the mystery, popular RJs Jaggu and Tarana from the then GO 92.5FM (now Radio One), encouraged listeners to guess the meaning behind the hoardings. This was the first phase of the three-phase campaign heralding the launch of the newspaper DNA. In the second phase, the faces of the same individuals were revealed, supported by the tagline, ‘Speak Up, It’s In Your DNA’. The third phase launched the paper with the line, ‘Now Showing: DNA’. The publication achieved a circulation of 2.75 lakh on its launch day. As many as 78% people remembered the campaign readily, and 98% recalled it with some help. Mindshare’s work for this launch lapped up several award nominations including Best Media Strategy-Services, Best Media Innovation-Out of Home and Best Integrated Campaign of the year. The creative agency for the campaign was Rediffusion DY&R. It is reported that about Rs 70-80 lakh was invested in Outdoor alone, while the overall campaign cost about Rs60 crore, according to media reports.
DO’S & DON’TS FOR A LAUNCH
• You have to be on digital media – whether you are targeting urban or rural
• Make sure your PR presence is not restricted to topend pink papers, include consumer PR
• Don’t do exactly what your competitor is doing
• Don’t focus on awareness creation alone, at times interest and desire are more important
• Don’t ignore the power of BTL
• Don’t outsource retail to big chains, own your retail and leverage it to your advantage
(With inputs from Harish Bijoor)
CASE STUDY
AROUND THE WORLD
Windows 8:
Microsoft was quickly losing its footing in the industry to Apple’s iOS and Google’s Android. With a marketing budget in the range of $1.5 to $ 1.8 billion in October 2012, Microsoft unveiled its campaign launching Windows 8 in 42 countries at the same time. For three days, the Windows 8 interface featured on 39 digital boards in the largest takeover of Times Square to date – making it the biggest Start screen ever.
Playstation 4:
The marketing campaign for the launch of Sony’s Playstation 4 was the biggest in the brand’s history. As a build-up to the launch, Sony traced the evolution of its gaming platform with #PlayStationMemories on Twitter followed by a TV spot inspired by the tweets. The integrated campaign created by agency 180 Amsterdam was titled, “This Is For The Players” and ran in Europe, Australia, New Zealand, India, South Africa and the Middle East, comprising teasers, events and an interactive social media experience.
Starbucks Blonde Roast:
Starbucks decided to go with the ‘Honesty is the best policy’ route for the launch campaign of its new Blonde Roast. TVCs from the campaign titled “Converts Wanted” featured Starbucks employees narrating stories of friends and family, who had earlier felt Starbucks coffee was too strong but had now converted to the brand after tasting its latest offering.
Reese’s Mini:
An FMCG product unveiled itself at a Consumer Electronics Show – the strange combination is exactly what makes the launch of Reese’s Mini stand out. The candy was launched by opening a giant orange box in the lobby of the Las Vegas Convention Center. Even their Facebook strategy, instead of hard selling, told the story of a chocolate and peanut butter cookie couple. The love story which was narrated in 10 Facebook posts concluded with the birth of the couple’s baby – the new Reese’s Minis.
THE APPLE WAY
Apple is touted to be the best company in the world when it comes to launching new products effectively. People lining up from the wee hours in front of an Apple store on the eve of a product launch is a common sight. The company that is committed to consistent product innovation believes in ‘informing’ customers of a new product’s use and benefits instead of ‘selling’ to them. Another highlight of Apple’s strategy is the importance given to secrecy up to the product’s official launch. Secrecy invariably leads to curiosity, keeping consumers engaged and guessing — buzz created without spending marketing dollars.
Feedback: henna@exchange4media.com
