Thursday, September 29, 2011

Soap to Cream - Changing Times Changing Priorities!!

My resposne to Economic Times article (Click below link for artice:
 http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=pastissues2&BaseHref=ETM/2011/09/21&PageLabel=27&EntityId=Ar02700&ViewMode=HTML
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HUL's strategy of focussing more on Beauty and Grooming is quiet well thought out act but late in implementing. Because I think detergent market was saturated and became less growth driver a decade back! I remember when I was still in undergraduate during 2005 something then only we discussed in the college and came to conclusion that most saturated and competitive market in India is Detergent. You will find hundereds of local brands, National brands and adding up to this are the counterfeit brands!

In such a scenerio I would expected companies to change the stragegies and concentrate more on lucrative and high margin categoires like B&G!

Due to globalisation, gaining more purchasing power by the Indian middle class due to evolving newer job opportunities thrown out by the ITES revolution are said to be boon in disguise for the FMCG/CPG cos who are looking desperately other avenues of growth.

Emergence of SOcial Media-Change in Media strategy:
Coming to other point, emergence of social media in the recent years is changing the landscape of the media reach by any industry. More and more companies are raching out and publicly displaying to follow them on facebook or twitter! With mushrooming TV Channels and viewer having more than what he can take, effectiveness of the TVC is always unpredictable and always a challenge.

On the other hand social media may prove to be more practical with the the option of fine tuning the target and reaching out to the accurate segment. And engaging in social media will be more direct with two way communication where in companies can connect with consumers directly and more effectively. It will prove to be economical and more satisfying as you are fine tuning your reach and reaching to more accurate and target audience!

There is no dounbt Internet will soon start posong a major challenge to the Television media ditto in the same way the news channels posed their threat to the Print media! With the bebefit of reaching to accurate target audience, and more effective measure of the effectiveness of campaign and direct consuer connect it seems social media is already winning over traditional TV media.

No dount with the shift in the proprities of the FMCG/Retail companies from Soap to Cream may end up Ekta Kapoor having faebook version of KSeriesVille!!


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