Saturday, January 25, 2014

Consumer Durables and 50 Years of Advertising in India

Indian advertising has witnessed dramatic changes like no other country has, in the world. The transformation reflects the socio-economic changes the world is going through. In the last 50 years advertising has also underwent a lot of changes as far as consumer durable goods is concerned. Post 1943, when India was about to gain independence was still reeling under the euphoria of freedom, its people were facing acute fundamental problems such as food and other shortages, inflation challenges, ongoing war (Indo-Bangladesh)/China/Pakistan/Srilanka/The North East Insurgency India was in fact a reality, the harsh one, such more than the current, then politicians, like Morarji Desai, Indira Gandhi, must have imagined. Poverty and political unrest buoyed the uncomfortability and even more.


The 70’s Show Business- It started here

Untill the mid 70’s more professionals from the advertising industry started entering the advertising scene. MBA grads from the IITs and IIM’s almost half of them started flying o the US, the land of promises, like birds from a coop. Post 1991, the Indian economy was just reviving under PV Narasimha Rao, Congress and Manmohan Singh’s economic stewardship.

Growing of Market

Leading advertising agencies that point of time had the right ingredients to make it big- the right talent, brain power, tools and the technique to counter the challenge in a competitive market, as MNC’s arrived in India. It started from just a handful of brands in limited category and a bucket full of brand products all set to change people’s lives dramatically. The Italian Vespa scooters had just arrived, the BSA, Norton, and Ariel bikes, and loads of consumer durable and white goods to services, real estate, food, snacks, soft drinks, aerated drinks and more.

MNC Spotted Talent in India

The MNC’s started picking local ‘desi’ talent amidst, Indian agencies. Marketing research happened to be the first such offering. Across Asia, you would find an Indian who would be heading operations of one of the agencies. After marketing research, cam media planning agencies started planning media for just or two TV channels in less than a decade (1991-2001).

Creative Indians- Juices Forelong

Creative agencies like McCann, O&M, Ulka, Rediffussion etc. started evolving and was undergoing a metamorphose like situation. During this period Indian commercial Ericcson won an award in Cannes. I think that was the beginning. Indian advertising was changing from a made to suit international audience or modify the content as per local needs and demands as even Indian was experiencing socio-economic changes, thanks to the explosion of cable TV.


Multinational-ization of Indian Agencies (1963-2013)

Advertising in early India was initiated by one B Duttaram did set up his advertising agency in Mumbai in 1905. Most advertising was targeted at the sahibs and the memsahibs who ruled pre-independence India. When JWT-(J Walter Thomson) set up shop in 1929, Professionalism seeped in. The 1930 ad for KC Das pushing its canned rasgulla was a fresh marketing idea then and a decade later the 60s witnessed the 'utterly butterly delicious' campaign by Amul. The supposedly origin of ‘Mad Men of Advertising’, O&M (Ogilvy and Mather Co), are the initiators of modern supreme experiential advertising. Their ‘Man in Hathaway Shirt' ad campaign chose a good looking Man, yet with an eye patch. The ad was a hit. New tools and techniques were being put to use in this period. From a handful of TV channels to now over 500 registered channels and websites and YouTube to a mass proliferation of new digital age advertising and branding/traditional definition of this term was undergoing a CHANGE.

From Metros to Mofusil Towns

From just metro cities namely- Delhi, Calcutta, Bombay and Madras, the Indian advertisers started targeting smaller towns and people living and speaking vernacular languages, even the modus operandi. Sport marketing opportunities such as IPL, IBL, and soccer competition have created never before advertising opportunities. It like creating a demand out of thin air. Haier India will be celebrating 10 years in India and plans to increase it's digital footsteps in India through digital ways and means. This way a brand can reach out to a wider geography via internet.

Some noticeable changes the industry was experiencing:
a) A beginning of the mall culture
b) Increase of women work force in offices
c) The rise of TV and media
d) Increase in literacy and associate awareness
e) Mobile revolution/Land line expansion
f) New roads/ electrification of villages
g) The rise of luxury marques
h) Growth of internet based products and its usages

Advertising and poverty-Its Invariably Proportionate 

Post 1990, the economic boom has actually elevated lots of poor from the shoddy lives they were used to. The poor, owing the exposure of products, started living better lives, which was affordable in general. Currently over 50% of Indians live under squalor like conditions, yet a majority of the poor today can afford a mobile phone. Hence, we assume that 50% of our population has little or no idea about brands and the importance of quality in a price sensitive market like India.

What Next at Advertising- Embrace Digital

As well perceived by Dr. MG. Padmeswaran, head of draftfcb-ulka (piece inspired by him), Mumbai, he believes that Indian advertising is well positioned to be where it needs to be.


What do we need to do?
a) Talent attraction and retention
b) Decoding and understanding digitization of media
c) Tracking consumer trends
d) Pushing the envelope
e) Ability to demand the right price from the clients.

Pic courtesy- media2.intoday.in, bestmediainfo, graphics8.nytimes Dot com

The Author PalashD, is an executive with an MNC.

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