 Digital marketing aligned to classical marketing. Arvind Bhandari, Executive Vice President, Director, Nutrition South Asia Region, Nestle is here with us. So he is a corporate veteran. He has served in organizations such as ITC, JWT, PepsiCo and Nestle across the South Asia and South Africa region nurturing iconic brands such as Maggie, Lace and Pepsi to name a few. He has been awarded the Asia one year's greatest CMO in the 2016-17 awards. We are so delighted to have you here Arvind Bhandari, please take us forward a day two of technical discussion. Thank you so much. Just a quick introduction. So I am a mass marketer by profession across a host of companies starting off with ITC. Yes, I know this ITC where I was in the field, I was advertising for a couple of things. The team of the company then was expecting a plan to come to me and see me with it. It was a long time ago and it was a long time ago. But then things were clear to me. Time was on me. It was a long time ago. It was a long time ago. It was a long time ago. It was a long time ago. It was a long time ago. It was a long time ago. It was a long time ago. It was a long time ago. So the mass marketing is all about scale deployment. And media, which is our classical media, is what perfectly complements the mass marketer because let me give you an example. So you need to generate a consumer awareness, which is of a scale and of a kind, which means it has to have reach and frequency where they see you and they are prompted to come and buy you off the shelf. Now, typically that sort of scale only happens with the product. Unfortunately, in our country, large TV, a large population, a very diverse distribution universe, TV still delivers the best. Not only does it reach the maximum consumers, but it also reaches them actually very cost effectively. So a mass marketer has no option but to go to TV because he needs to make at least 70% people aware of his product, of which eventually only about 25% will try it, and 5% of those of the total universe, let's say, are going to be staying with you for repeated consumption. So it becomes very difficult to get back a lot of people doing it. If you don't, then you have to shoot with your own supply chain. Now, I'm going to talk about the mass marketer. So the thought of how to go on, to go on increasing mass awareness, and then you are going to wait for the response. It is here now, or a mass marketer. Now, in this mass marketer, this is not the case. Yeah, guys, is it better now? In this mass marketer, the challenges are not going to get the same rate. If we should go into mass marketer's pay, we don't get the record number of your target audience in your product resource. So to give you an example, if you put the product out, if you put it in the market, you don't get the same rate. So you don't have to do that. You don't get the same rate. You don't have platforms to start the process. Which is the more operational aspect. You don't have that much inventory available in a lot of these platforms. So whether you're talking about a search or a social or so on, you don't get that sort of reach because the inventory is not available. So what typically happens is that in the first or second week of TV, you strike a GRP of 200 or 200 plus, and you get the requisite 60, 70% reach. In digital, it does not happen. Now, that's a risk you cannot take because your products are in the shelf and you don't get the consumer reaction. So that is the first barrier a mass marketer has to tackle with digital, which is reach. What people are doing now, therefore, is that they put the TV out and then the supplement with digital reach options. So from a reach perspective, it works well because you've got to a certain number of people who know you and then the digital becomes an amplifier. It does not have the same urgency as TV, but it is certainly able to connect with consumers, build intimacy, build engagement, and maybe even improve the chances of the repeat rates which TV may not be able to give you. So in a sense, the media issue is tackled. Then you come to the creative aspect. The creative aspect is a bit different in the digital space. If you look at the whole creatives of the old classical marketing, it's a longish 45 seconds. But they're not necessarily the edits or the smaller versions, but they're also adapted to the consumer you're speaking to. So let me give you a small example. And this is something I'm taking from Livon Industries and they did this very successfully. So they have this one Livon, which is meant for girls and women. And they had a standard creative which talked about the issue with grooming and they solved it with a standard creative. Now, when they came to digital platform, they actually re-segmented their consumer. They took the consumer, which is the girl, the woman, the tween, and so on, and they actually sliced them up to not only the individual but also the rest of the environment. And so they have a product called free and moral. If you look at now, this is going to be significant for a TV commercial. This will be used in a small town. It will be a fun international market. The building will be open once you go there. And after 50 months, they're going to go to digital And that will be to prove that it is safe to come into the state of the country. And now the government will be able to respond in the country for the people and the staff are to be able to put the people in the power to do this the whole society now of talking to the owners of the hardware, the hardware, the staff. And when you go to the people, you have to go to the government, you have to wait for the government to change or even to buy now. It improves because you're able to actually speak to consumer in their state of mind and give them their solution. So we move from a reach option to a more sort of sharply targeted creatives for the consumers in consideration. And then you come to the evaluation metric. Typically in a mass media and a mass product, you look at the sales and now actually you have the opportunity to look at other metric which is not available to you in the classical marketing. Now you can track your brand affinity. So in digital marketing, it's possible to see how consumers are feeling about your brand, how they're reacting, what is their view. So today now it's quite apparent that what drives consumer is with you and then you go off. Can I go on? Just carry on. I'm just giving a broad snapshot. So in the classical marketing, you have a consumer and you lose them because you target them once and you don't speak to them one more time because you have nothing new to say. In digital, you can retarget them. So if you spend them the first time with the proposition and you haven't appealed to them completely, you can go second time, nudge them with a deal, with a promotion, with an offer, which gets them closer or even with an experience, which is the other thing. So therefore it's a far more elaborate environment. I have Githika recently, in fact, let me share with you, to put a book out to sort of close the gap between classical marketing and digital marketing. It's in fact a generation gap where the new custodians of marketing are not understanding how the classical marketeers of let's say a decade back are working. But actually we've tried to fuse them together into a model and I sort of sent some slides if you can quickly put them out, I can explain. But there's an opportunity for now to actually look at the classical marketing tools in conjunction with digital marketing and evolve something which is very holistic, very powerful for the new consumer. So if it is possible to have a slide, how does it work? The team at TechMunch, if we can share his slides. It would sort of just put this into a conceptual overwrap and then you'll be able to understand. There you are, there you are. Here's the book, Githika, if I can just give you a bit of a snapshot of drag marketism. It's endorsed by people from the industry, you know Prasoon, you know Harish right, and Suresh the MD of Nestle. And the attempt really between my co-authors, Rupthi and I, has been to look at marketing from a lens which is practical because I think a lot of it tends to be very theoretical. And digital is forcing us to be a lot closer to consumers, to be in their shoes and therefore there's need to be really pragmatic and solutions and instant marketing solution which is very Indian. And I mentioned to you the example earlier of LiveOn and how our Indian consumers are asking for solutions which are pertinent to their environment. A solution which is very digital, of course this is the whole deal now. How do we make digital sit very nicely on the classical? So if I can just go to the next slide. Yeah, this is the front of the back and just the next slide. And this is kind of a model which fuses classical marketing and digital marketing very simply. So if you look at what marketers do, they basically do penetration which is to get more consumers and consumption on the y-axis which is to get the same consumers to buy more. Now that's how typically we plot the consumers. Now if you go to the left, then in a classical marketing what you do is you create awareness. So you have a product, you tell the consumer they come and buy you. In digital marketing you're moving from mere awareness to resonance. So it is not only about telling a consumer that you have a solution but it is telling the consumer that you just don't have a yogurt but you have a yogurt with vitamin which is good for your skin. So you kind of go harder and further with your proposition and get a response from the consumer in empathy which generates a stronger response, more immediate and more lasting. Then if you go a little further which is on the right hand side where the situation is that if you have high penetration which is a lot of people use you but they're not using you enough. Then in that case in the classical marketing you don't have many solutions because you were probably let's say you were a Maggie which was had at 4 o'clock. Now you go to the digital marketing, what I call the moments marketing where you can talk to consumer, jab them now and then very gently saying here morning time, missed breakfast, no problem rushing to office have a Maggie. In office don't have the lunch, another occasion to have Maggie. So with sharp retargeting, sharp occasions that you can now choose with algorithms which are very refined thanks to the analytics that we have available you can drive the brand consumption from a consumer who uses only once to maybe a lot more often. So therefore you have the opportunity to get into occasions to moments marketing. Now if you move up on the top side which is the high ground of marketing where you have a lot of consumers and they use you often which is your loyal base of consumers. Now with digital marketing you have an opportunity to turn those loyal consumers into evangelists. The whole dream of brand marketing is to convert your consumers into people who actually talk about you. A classic example being Holly Davidson which does not need to advertise or a WhatsApp actually where people talk about the platform because they're so close to it. With digital marketing you allow consumers, you give them platforms, you give them opportunity and they speak for the brand. So classical marketing becomes a lot more powerful. Your erstwhile loyal consumers sitting quieter have become a lot more vocal and they're building the brand for you. That is the power of digital to you. And on the left hand side which is the one where you consumers are a lot in number. They're not so many number but they're consuming often. I mean think of a brand of a niche set of consumers who have high consumption but they're not many of them and you want more of those people. So let's say you are a semi-luxury brand like an SUV player who has a set of players and you want to get more of those people. So what you do is you go to e-tribalism which basically in marketing sense means that you make a community of people who like the brand experience and they talk about it to other people who haven't used. But by the sheer appeal of their description of the usage of the brand they will make it more popular. So an SUV consumer talks about his great experience of family outings. And suddenly a lot more people who did not think of SUV as an idea they thought of hatchbacks or the smaller cars are now looking at the larger cars because they see people like themselves. Now digital allows you to go to those people with that experience with that creative and actually spread the net of your users. In this grid I have tried to explain in this book and there are many such grids to help classical marketeers and digital marketeers to come to terms with it. So this was Githika the broad summary on how classical marketing and digital marketing can work together on mass brands and really help consumers grow. That really help mass marketeers to build the business with the brands. I like that word there, Prague market is the word. I'm going to use it. It's pragmatic marketing for this complex nation of ours. Very complex nation of ours. Very complex. Okay, you know what? I won't just come out to the screen like this but we are trying to manage time here. Arvind, thank you so much for your time for all the effort you've made and I'm sure our listeners and our watchers have had as good a time as I've been listening to you. Thank you very much. Thank you so much. I really enjoy it. Thank you so much.