Beefing up direct selling strategy
Direct selling companies in India, which have so far depended on ‘word of mouth’ to reach out to their customers, are going for mass media advertising in a big way. All leading direct selling brands – Amway, Tupperware, Avon, Oriflame and Modicare — are planning big both in terms of above the line (TV, print and radio) and below the line (consumer contact programmes) advertising.
Amway India Enterprises, the Rs 1,790-crore Indian arm of Amway Corp of the US, which rolled out its campaign in November-December 2010, is all set to spend Rs 30 crore this fiscal on brand-building. “From our first burst, we have been able to create a top of mind recall for our mother brand. We will build the brand from here, focusing more on our sub-brands Nutrilite and Artistry. From this year, we will spend around Rs 30 crore on brand-building,” said Naveen Anand, senior VP-marketing, Amway India.
Explaining why direct selling brands are getting active in the marketing and advertising space, Asha Gupta, MD, Tupperware India, said, “We have realised over time that for a market like India with over a billion population and so much clutter, ‘word of mouth’ is not enough. A proper brand-building exercise is required to create brand awareness and credibility.”
The US-based direct selling brand, Tupperware, which manufactures kitchen storage containers, and food and water containers, started off with movie tie-ups and in-film placement of products two years ago, but of late has started advertising extensively in print and radio.
The direct selling sector in India, valued at $895 million and growing at 24 per cent in 2009-10, as mentioned in a report released by ICRIER, is witnessing some serious changes in the marketing strategies of these companies
More and more direct selling brands are going the celebrity route too. Herbalife recently signed on cricketer Virat Kohli to endorse its nutritional products and dietary supplements. It already has a list of celebrities, including sportspersons Saina Nehwal and Mary Kom and actor Mughda Godse, endorsing its products.
Similarly, Oriflame, the Swedish cosmetics brand, has tied up with fashion designer Rohit Bal to conduct fashion shows. It is also using print and radio and plans to advertise on TV.
Modicare, the direct selling arm of KK Modi Group, which has recently roped in actor Karisma Kapoor as brand ambassador for its skin care range, has upped its marketing budget by 40 per cent this year. “The idea is to make our consumers aware of our brand. This way the consumers’ trust in the brand is developed and conversion rates increase,” said Amrish R Anand, CEO, Modicare.
Hemant Singh, MD, Avon Beauty Products India, the Indian arm of US-based Avon, said, “In India, we may not be advertising, but outside we are a heavy advertiser. We have Hollywood star Reese Witherspoon as our brand ambassador. Following the global trend, we will soon be looking at advertising in the Indian market in a big way. Last year, we did a pilot on TV in the eastern market. We plan to go national on TV by the end of this fiscal.” Avon is also looking at celebrity endorsement, but Singh refused to divulge details.
Kumar Rajagopalan, CEO, Retail Association of India, said, “In the direct selling space where a representative has to directly approach a consumer to convince him/her to buy a product, brand awareness is essential. Why is it that a Eureka Forbes representative or of Amway gets easy entry to your house? The brand-building exercise started by some of the bigger players in the space has generated a favourable response. The trend is catching up among others as well.”
View original post here: Beefing up direct selling strategy – mydigitalfc.com
Related posts:
- Top direct selling firm arrives in Phillippines
- Amway targets Rs 2500 crore mark in 2012
- Tupperware Brands Corporation on Fortune’s Most Admired Companies List
- Q2 2011 Avon Products Inc Earnings Conference Call
- Introducing Pro Color & Gloss Lip Duo from Avon
Category: Direct Selling
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
