By Gopi Santhanam

Nothing impacts business more than understanding the consumer across variables - be it B2C or B2B marketing efforts. And I take the liberty of bringing in the channel (distribution) into the mystery box as very often the role they play is often under estimated or taken for granted. Let me share a few examples which I have been involved in.

Replacing a tradition Fighting a traditional practice of using freshly ground Shikakai and herbal mix for hair care, specifically in southern India, was a phenomenal task. And the ground work started with understanding consumer needs, significance/role the product plays and its associated emotional attributes. The research threw specifics on how women attributed the use of traditional Shikakai every week as the usage assumed cultural importance associated with a divine Friday. “Meera” was introduced as a replacement without alienating the core product attribute but loaded with additional benefits. I called it a “Friday Friendly” phenomenon. The understanding came through some deep dive into associations drawn and how culturally important the routine was for women from across the 3 southern states. Today, with further research the brand has diversified into other enhanced product offerings, providing benefits sought by the new age consumer. However, its heartening to see some brand communications that still marry the product with the cultural aspects.

Building a Franchise With expertise built over decades of being in commodity selling and slowly moving into Value added product portfolio, VPSA (Thillai’s) a homegrown brand has made a telling impact in the HoReCa category through a invested understanding of the requirements of the category. While the brand has a range of consumer products, both specialty and generic, the foray into establishing its status came from research that analysed the needs of sub-category buyers divided by region, cuisine and use. The early mover advantage coupled with specific product range catering to diverse market categories within India also aided in building acceptance. The key insights gained is the need for customization within products which a traditional B2C player would have found unprofitable.

The channel is as important Noticeably, more and more consumers are shifting to online commerce, even for everyday essentials. But the retail chains, the kirana shops and local stores continue to establish that the buying patterns have not changed in many markets in India. Food & FMCG segment have contributed to around USD 10 billion (2022, Source: Statista.com), while the overall turnover is approximately around USD 240 billion contributing less than 5%. The point is the shop owners, last mile distribution resources and sales are a key source to identifying trends, patterns and an insight into consumer behaviour. The 60+ local shop owner has seen changes in consumerism and has a better insight than many in the ecosystem. The small value pack is a distribution masterpiece aimed at kirana stores – a volume game which every food brand/FMCG is fighting.

The Key Driver One philosophy that has not changed for decades now is the fact that unless you talk to your customers you will never know about them. Only the platform through which we interact has probably changed. It tells us the importance of research and engagement and why most successful brands continue to walk the path without hesitation. Then comes the question of how well the research is organized and are you really talking to your audience and how robust is your research mechanism, the scale and the RoI? Does the traditional process still impactful? Are there any bottlenecks? What needs to change and how do we go about it? How does regulations impact storing of personal information? How do you challenge the orthodox? These are questions that need to addressed.

May be sooner than later.

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