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Saturday, January 22, 2005

Deadpresident's Moneymaker


Buy Geometric Software.
CMP : 400
Target : 450 ( Sharekhan ) , 750 ( Equitymaster )

Here are 2 research reports that might influence your decision - Sharekhan Research Report
Equitymaster Stock Select


Brand might, with kids' insight


THE bright Indian kid genius showcases his or her talent and knowledge on the Britannia Television show, inspiring millions of Indian kids to aspire and desire to achieve great things in life. These kids have dreams to contribute to a better world order whether in the field of culture or agriculture, Biology or technology, art or heart, a space station or a radio station or good education.

Children in India contribute to the development of India mentally or physically, and have today, a choice of a number of kids' brands. They could choose from an Amar Chitra Katha set of comic books which educate or a bar of Cadbury or Nestle chocolate or a scoop of Kwality Walls or Amul or Mother Dairy ice-cream or shopping options from Big Kids Kemps, Lifestyle, Globus or Shoppers' Shop. The choice is wide for kid brands whether in garments or toys or books or entertainment.

A kid in Mumbai decided whether his father should purchase a Ford, a Honda or an Accent. A child in Delhi decided on the location where the family should buy their new house in. In Chennai, the family went by the decision of their children about their club membership.

The largest kid market in the world, India, is changing rapidly in favour of the child not only as an influencer but also as a decision maker. Brand marketers should increase the brand might with kid insight.

As the new Internet age evolves and increases its space, children of the 21st century are in a position to get more information at a shorter time compared to what their parents or grand parents could access.

This has brought about greater exposure, greater knowledge among kids and has enhanced not only their influencing power in choice of brands, but has also turned many of them into decision makers in categories which are not necessarily categories only for children.

For instance, today, kids many a times not only influence, but can also in some cases decide a choice of the car brand for their family or a computer brand or even the choice of an upscale club membership.

This quick change in strengthening of kid power in influencing and deciding brand choices is having major implications on the marketing plans of various companies.

Let us understand the consumer behaviour patterns in terms of kid power in the purchase and usage of brands.

I would like to analyse the kid behaviour patterns under three categories - core category, peripheral category and adult category.

Core category

In certain core kid categories such as ice creams, chewing gums, bubble gums, toys, theme park visits and many others, kids' decision making is clear and many a times non-negotiable.

The influence on the kid's mind and heart come not only through advertising, but also through varied promotions and more importantly kid peer pressure.

It means that whether it be children's books or games or certain kid's activities creating good word of mouth among peer group definitely brings the product or service brand into the consideration set of the kid.

Here too, the Barbie for a little girl and a special toy gun for the boy child would also influence a child at school and in the neighbourhood.

It is important for marketers to constantly innovate, upgrade and understand child psychology so that their brands can succeed in the relevant segment.

Peripheral category

There are certain categories which are peripheral to the needs of children. For example, a choice of curtains at home, including in areas where the kids play or choice of certain grocery items.

Though the kid does not directly consider these categories to be core to his or her existence, many a time the choice of a ketchup brand or a brand of atta can directly or indirectly be influenced by children.

Recently, a study showed a growing influence of children in choosing brands in household categories such as toothpaste and toilet soaps. No wonder many marketers concentrate their communication in influencing children and through them their parents, towards taking positive decisions in favour of their brands.

Adult category

Conventionally, many people felt that a brand choice of a house or a car or a refrigerator or club membership would purely be an adult decision.

This is fast changing. The kids are not only becoming strong influencers but they are also, in some cases actually deciding what the family car or cars should be.

This has a serious implication on branding, which marketers need to understand and not treat the kids only as kids but also understand that slice of their influencing character which can be strongly similar to adult behaviour.

A quick access to knowledge and transparency has made kids grow faster into decision makers. Marketers should seriously note this kid power. No kidding!

To have a strong and effective kid marketing, one could take a look at Samsika's `6 `I' Kid insight' module.

I — Inquisitive

Kids have become very inquisitive. They are even interested in knowing the amount of calories consumed or spent. This is because of the recent issues over soft drinks and chocolates

I — Indulgent

Kids would like to indulge. They want to participate, be it in mobile phones or ice creams. They are not cautious, but thrifty.

I — Integrity

Kids are discerning. They want to know whether the brand is honest. They are going away from brands which mislead, which do not have integrity, which don't keep their promises. They look for authenticity of the product.

I — Influencer

Kids act as influencers not only for kids' product but even for luxury cars, which holiday to take, and which gadget to buy. The exposure to TV and travel has helped the kid in becoming an influencer.

I — Involved

When kids' consume or purchase something they are fully involved in, they are not `apart' but are `a part' of the whole process. Even in schools, they are involved in education, they want to know what the teachers are giving. Kids have become conscious about perceived value. They want to know whether they should `brand switch' or not.

For example: The programme, Jassi Jaisi Koi Nahi virtually does not have kids, but the viewership among kids is very high.

I — Incisive

Kids have become sharp and can analyse. They even know what is happening in the manufacturer's mind. For example, on one pack if he is giving two packs free, the kids will say that this is because his product is not selling. Kids respect and appreciate merit.