Millennials are Key Drivers of Consumer Markets and are Redefining India’s Consumption Story- Bharat Gandhi, Marketing Expert
Agency Reporter interacted with Bharat Gandhi, who holds about 15 years of experience as
a Marketing Expert in the alcohol industry. In all these years, he has been collaborating with brands & regional trade marketing teams to achieve sales, market share & profitability and developing & implementing on-ground regional launch strategies for topalcobev companies.
1. Your career in the liquor industry spans over 15 years. That is huge!In your tenure in the alobev industry, you were responsible for developing & implementing on-ground national & international launch strategies for many renowned brands. What according to you are the key elements for a perfect product launch?
Yes, during all my years in the liquor industry, I’ve been lucky & grateful enough to be a part of plenty of eminent launch teams and represent 39+ liquor brands in India. Most of them today
Product launches are tricky because unlike other marketing efforts, you just have one chance to get it right. There’s not much room for testing and refining tactics. Launches need to pack a punch. If you want to get your launch right, it’s going to take a lot of careful research, planning and measuring, some of which must occur before you even get to the development phase.
Having an original product idea is a critical starting point, but we should also think about the market opportunity for our potential product. There are many key considerations when evaluating market opportunity prior to product development. Here are a few elements that I keep in mind for a perfect product launch:
Consumer: Ultimately, any product should be launched as a result of the consumer need — the success or failure of any product is largely based on whether or not people will consume it. We clearly identify the potential consumer for our product and whether or not that consumer can be segmented.
Competition: It’s important to consider any competition currently in the same space you’d like to occupy. Are there other
Finances/ Pricing: We think about the financial profile of the product and the market. The higher the financial risk and opportunity cost we stand to lose. Consider whether we’ll be able to take advantage of economies of scale and how that will affect our development and distribution costs. Knowing the financial landscape of our potential product will help us make the right short- and long-term decisions.
Scheduling: Any experienced product manager will say that an accurate launch calendar is crucial to a successful product launch. One should start by deciding on the desired launch date and work backwards to come up with a realistic timeline for all teams involved. The launch schedule should encompass each and every step we need to take to reach our goal, and our entire team should be aware of the schedule so they can prioritize tasks accordingly.
Positioning: When launching a new product, trust is critical. One of our biggest tasks during a product launch is to establish trust in our market. The right positioning will make our product much easier to sell in the long run. Positioning shapes the way consumers will evaluate our product and that of our competitors, which will drive customers’ purchase decisions. Remember, a product can serve the needs of multiple target segments, but the positioning needs to be appropriate to the consumer.
2. What are your market insights when it comes to segmenting different liquor products?
No two alcohols are alike, and neither are any two consumers. Of course, we can group alcohols together by identifying certain characteristics. The first thing is that we don’t just go out and create segments. They already exist. It’s a matter of whether or not we’re paying attention. This is what I’ve learnt when it comes to segmenting different liquor products. Also, consumers often change their behaviours depending on the time of the day and what occasion they are celebrating. Hence, in a broader sense, I can tell you that the products are segmented based on the below factors:
1. BY APPLICATION OF ALCOHOL
- Up to 5% or less than 8%: BEER (Lager/Strong)
- Between 12% TO 16%: WINE
- At 42.8%: WHISKEY, VODKA, GIN, RUM, COGNAC, TEQUILA etc.
2. BY PRODUCT TYPE
- Imported Liquor: BIO- BOTTLED IN ORIGIN & BII : BOTTLED IN INDIA
- Indian Made Foreign Liquor
- Indian Made Indian Liquor
3. PRICE POINT
- Regular
- Deluxe
- Semi Premium
- Premium
- Super Premium
3. The New Advance Research Report Published by Crystal Market Research titled, Whiskey Market, approximates that the Whiskey Industry size is expected to flourish at a significant CAGR in the future. What are your comments on that?
Yes, as per the studies and research reports, it is evident that the global whiskey market is expected to reach USD 7.40 billion by 2023, witnessing a CAGR of 5.3% during 2019-2023 (forecast period). In this 58% growth, the major contributor will be the APAC region. As we all know that India is the largest whiskey consumption market in the APAC region, its contribution will be huge in this growth over the next 5 years.
In India, liquor segment growth is driven by the changing lifestyles, consumption habits, high disposable income of the consumers which is increasing the demand for premium products. So, in India, the launch of new products in premium segments will be one of the major trends in this coming years. Most of the key players will be seen developing new products to cater to the consumer demand for variety and novelty. Also, a successful product launch helps expand the consumer base and increase the flow of revenue.
4. Consumer has become more demanding than ever before. Do you agree? Also, what do current trends indicate about your consumers? How would you respond?
Yes, I do agree that consumers have become more demanding than ever before. Consumers today are two steps ahead of the marketers. They are interacting with multiple brands through multiple windows and channels. They want experiences that are personalized, relevant, and consistent—whether they’re interacting with our brand online, in-store, or on the phone or via social media.
Millennials, between the age group of 18 and 35 years of age, are becoming the drivers in consumer markets and redefining India’s consumption story. To remain relevant to millennial audience for a long time is challenging to any consumer brand. I believe brands as a living entity must continuously reinvent themselves as per the consumers and environment around them. A large number of young people are coming in legal drinking age and changing the norm of the consumption as far as the Indian market is concerned. Thus, consumer brands have to change themselves far more rapidly in order to constantly appeal these millennial.
Apart from providing products for value, the different tools of marketing communications also play a bigger role for these young consumers. Apart from written instruction on the pack, we will have to create experiential communication via different platforms / channel which can connect with these consumers on emotional and mental level.
5. Do you think the Indian liquor industry needs a makeover?
Indian Liquor industry is already under a makeover from the past few years. You must have noticed the industry’s adaptation of new age communication tools to market its brands.
I would like to list few marketing trends which will redefine the makeover of liquor industry in the coming years.
a) Experiential Retail: – Experiential retail will draw the focus to a customer-centric approach where the customer is able to interact with product or brand rather than just being a passive participant.
b) Use of Augmented Reality: As marketers are beginning to experiment with virtual commerce. It leverages virtual and augmented reality devices to create entirely new conveniences for tomorrow’s consumers. Also, experts have noted that by 2020, the retail industry is slated to be the top spending industry on AR.
c) Multi-Channel Retail: Moving away from the traditional retail marketing, multi-channel marketing will gain increasing popularity. The aim for marketers will be to be available to the consumer on all devices.
d) Personalisation: The driving purpose behind this trend will be to elevate the consumer- brand relationship by increasing personalisation, transforming consumer into fans and boosting their Lifetime Value.
e) Automated Retail: Lastly, in the near future, if the Excise law permits liquor industry to create a human interaction-free experience for the consumer and online sale of liquor products, it will boost the sales tremendously.
6. What kind of a marketing mix can we expect the liquor industry to have in the future?
I believe it will include all the aspects of Marketing Mix i:e 4P’s (Product, Price, Promotion & Place). In the near future, consumers will definitely see some new products at premium price points which will not only make their mark in the Indian market but also international markets as well. Also, consumers will witness some great award-winning marketing campaigns, promotions, and experiential marketing brand extensions.
