Skip to main content

Turning back from pull to push

Two recent campaigns deserve attention from marketing enthusiasts, one of Campa Cola (reenergised by the Reliance Group) and of Tata Sampann's species. The challenges these two brands face are too distinct from one another. Campa, on the one hand, aims to fight the global brands like Pepsi and Coca-Cola, whereas Sampann looks to create a market in indian spices that has been dominated by local players like MDH and Everest. However, their strategies have something in common: getting the distributors to stock more of their products on the shelves. Campa is offering the distributors twice the margins, while Sampann is leveraging its vast portfolio to make stocking only Tata products a win for the distributors.

Image credit: Economic Times
To understand why this is happening, and what makes this interesting, one has to look back on the history of marketing, more specifically the shift from a push to a pull-based marketing, where the focus of the brands shifted from pushing their products to users to making the customers ask for it. This happened without changing the media for communicating with the customers. TV ads began to nudge customers towards indulgence with their product, anticipating the demand to move upwards across the value chain. This has worked for years, and continues to be a dominant form of advertising, albeit in its move from TV to mobile screens and social media. 

However, two more changes have begun to sweep the FMCG space, one of quick commerce and the other of digitisation. With quick commerce, customers are now somewhat constrained to Zeptos and Blinkit's catalogue if they are willing to get the service. It's very unlike the local kirana owner, who should be told to stock SKUs in TV ads but not on his shelves. Similarly, with digitised ads becoming cheap and accessible to almost all brands, the difference created through ads is pretty low; therefore, the brands with deep pockets are looking for another way to sway.

Image credit: Tata Sampann
The answer looks like going back to the distributors (the dark storekeepers and the supermarket stores). In a way, pushing their competitors off the shelf, and thus from customers' habits. What do you think of this look back at the history of marketing ideas? Is this a re-invention or a new one in the making? Are there any potential risks associated with relying heavily on distributor relationships in the current FMCG environment?


Popular posts from this blog

Election afterthoughts

The unfolding of the Indian election might have come as a surprise to many, for one is the BJP who steamrolled the campaign seasons with slogans of "400 par". While it remains 240 seats popular in a house of 520 members, a few stories should not go unnoticed. First, the BJP's popularity and the win for a third term is no ordinary feat. Only a few leaders of the past have managed such an elusive feat. This, indeed, is the trust that the brand Modi has built over the years. In politics, we often get acclimatized to the situations, in certain aspects too critical of it. When the young generation looked at Indira Gandhi's cabinet, they vowed never to again let such a solid mandate to a single party that its chief could declare an emergency, and no structures would be able to prevent that. This, however, ended up in fragmented colours in the Lok Sabha, the era of coalitions and surprise prime ministers. Needless to say, the horse-trading of MPs and the mindless corruption ...
dive in...

Birth of a flood - a poet's admire of rain

The sky is almost dark, save for those last golden tinges that would fade in no time. As palm trees mark the oblivion, a muddy reflection forms the ground. The last few days were mostly rainy. So profound is our love for rain. And why wouldn't we? Unlike most other seasons, rain is so tender. A drop of patience which is about to reach its final destiny. Every time I look at raindrops, they remind me of a struggle. A journey that begins with summer in an aura of dry and burning heat. And in no time, the drop loses its sources. The long-held identity of its mother. With the loss of identity, an awakening awaits. The pleasure of reaching out and bonding. As our drop moves up and up the end of the sky, it realises the futility of pride and the necessity to bond. This comes with age. Not until it is near Earth does it agree to meet with other wanderers of the new world. And finally, all our drops reach the cold atmosphere. The coldness makes life dreary and lonely. As the youthfulne...
dive in...