Mumbai, Feb 24: Just how much do promotions really work? Consider a recent example: On February 22, a 22,000-strong crowd thronged the Andheri Sports Complex in Mumbai to listen to UB40. Both co-sponsors, International Distillers (India) Ltd. and Pepsi, were thrilled that their brand was being associated with the show -- for absolutely different reasons.Post-concert, IDI's managing director Deepak Roy expects Gilbey's Solitaire, which is positioned for the 30 to 35-year-old whiskey drinker, to gain high brand recall from the event. ``UB40 was popular in the late '70s and early '80s. It fits well with our target audience,'' he says. In sharp contrast, Pepsi used the concert to target 20 to 29 males, who are prime cola drinkers. Says the company's corporate communications vice-president, Deepak Jolly: ``It is the younger crowd who actually flocked to the show. Reggae music fits into that age-group.''
With the two sponsors trying to appeal to different age-groups -- the real winner seems to be the audience.For as brand after brand invests in one-upmanship, and tries to define a sharper and tighter focus, it is the consumer who is treated to a plethora of promotions. The only question is: is the segmented-consumer rising to the bait?
Take Coca-Cola's Anil Kumble promos. On the 10th of this month, the leggie visited the homes of ten-year-olds in Bangalore after his 10-wicket haul in an innings against the Pakistanis. The condition? They had to be born on the tenth day of the month. Not to be left behind, Pepsi invited 100 kids last week to meet Wasim Akram and Mohammad Azharuddin in Calcutta. Next, the company is planning a major World Cup cricket cards promo this week. Says Jolly, ``We have beaten Coke through our sustained ad campaigns and promos in the country.''
Rahul Dhawan, director, external affairs and corporate communications, Coca-Cola India, disputes this and elaborates a long list of promo activities that the company completed last year. Coke organised 70 music-related events and 80 Fresher's TakeOff parties in colleges spread across 21 cities. Says Dhawan, ``Nearly 10 million consumers were exposed to the company's music activation last year through our aggressive consumer and event promos.''
To forge closer ties with its consumers, Coca-Cola organised roadshows with Channel V last year. The cola giant also launched special cans to promote the shows and ran a consumer promotion where it gave away branded merchandise and tickets to the show. Two million cans were made available in the market. The tieup with Channel V is for three years and the company plans to organise 11 roadshows in two years.
In contrast, Pepsi ran two big promos last year. In the Cool Maal promo, the consumer could buy a gift item which included bags and books at a discount after collecting a minimum number of lids of the Pepsi caps. ``We had planned for one million gift items. We ran out of them,'' said Jolly. Pepsi's second big promo: the magic cup. Available at Rs 7, the colour of the cup changes. Said Jolly, ``The promohad a positive impact on our brand.''
Currently, Pepsi is running a Pocket-Your-Hero World Cup cricket promo. The target? The 10 to 18-year-olds. Already, 70 million cards have been distributed. Says Jolly, ``Soft drink promos are more strategic in nature while clothing industry promos are oriented towards discounts. Promos are more frequently used than ad campaigns as they offer an opportunity to interact with consumers. The purpose is to increase the drinking habit and improve penetration. We are growing more than 30 per cent per annum. Promos have helped us in a big way.''
To be sure, promos reiterate the brand values of the product and work in synergy with the ad campaigns. Says Dhawan, ``In our ads, the product is the star. In our promos, the person is the star.''
It is not only the cola majors which use promos to outwit their rivals and establish consumer contact with their core audience. Liquor companies are in tough battle of promotions too.
Bacardi claims to have overtaken Smirnoff, partlydue to its promos and strong visibility in retail stores. Last year, Bacardi started the Latino night in Fashion Bar. The liquor giant will tie-up with J-49, a premier disco in Juhu, a western Mumbai suburb, next month, to start a theme night once a week called Bacardi Retro. Says Deepak Bedi, sales promotion manager, Bacardi Martini India Ltd.: ``Our promos, ads and strong brand name have put us ahead off Smirnoff.''
Companies are building long-term promo properties. Smirnoff has an annual International Fashion awards event and last year it launched the War of the DJs. Says Roy: ``Smirnoff is aimed at the young and trendy who are below 30 years. Pure thrill is our product proposition. We tailor our promos keeping that theme in mind.'' Bacardi, aimed at the upwardly mobile, has developed the Asian Beach Volleyball championship as a promo property. The Bacardi Blast, held with Channel V, is the second long-term property.
But Gilbey's Green Label has no permanent property. The promos are centred around thelower-to-middle income group. Says Roy, ``The type of promo depends on the brand profile of the product. For Green Label, we have the para Antaksharis in Calcutta. As Solitaire's positioning is "Get a Life", we run cyber promotions to fit into that lifestyle.'' Promos are also used to reinforce the positioning of the product and create excitement at the point of consumption. Liquor, cigarette and even music companies are increasingly looking at entertainment arenas like pubs and restaurants as the best means to tap their target audience.
Admits Tej Deep, one of the theme party coordinators for Mumbai nightclub, 1900's: ``While there have been formal launches like that of Foster's, other liquor brands tend to sponsor our monthly theme nights or organise their own theme parties. The members are upwardly mobile, globe trotters and heavy spenders. A lucrative target for any premium product.''
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.