Marketing and selling in tough economic conditions:

Successful marketing approaches

In an overcrowded marketplace:

Prasanna PERERA Marketing and Management Consultant, Chartered Marketer, CIM U.K.

There is a proliferation of products and brands, across many categories. In personal soaps the brands are endless. Lux, Rexona, Rani, Lifebuoy, to name a few. The same situation is there in washing powder i.e. Sunlight, Surf Excel, Wonderlight, Rinso, etc., As such, the challenge to marketeers is to raise their products and brands over the clutter and market same in an effective manner. This brief article aims to address this aspect.

* Contributory factors for the rapid growth in different products/ brands

The main factor is the changing needs of the Sri Lankan consumer. The consumer today is brand loyal, only up to the point that the brand delivers value. Brand loyalty goes out of the window, the very moment value is not perceived. Hence, the opportunity available for new brands.

A second factor is where marketeers attempt to build flanker brands, to protect vulnerable positions in the marketplace. Unilever, P & G, Fonterra and a host of other corporates follow dual branding strategies. Hence, the sheer number of brands in the market place increases, resulting in the clutter.

Another growing trend is the mushrooming of regional brands and even brands in only specific locations. The dairy industry provides a good example (Yogurt, Ice Cream, Ice Palam) The proliferation of these marginal brands, also adds to the chaos prevailing in the market.

Different packaging types and formats also create some degree of clutter. Sachets to bottles to cartons to plastics; the whole lot. The reason for this is once again consumer needs for different purposes.

Natural products and a greater emphasis on healthy living, is also another contributory factor. As a result, natural and artificial variants of difference products are made available to the consumer.

* How to effectively overcome the clutter in the marketplace?

There are many different approaches that can be examined. Of course, a lot depends on the nature of the product and industry.

One of the best marketing strategies is to "Position" a product or brand, clearly in the mind of the target consumer. In order to do so, a clear, relevant and beneficial message should be communicated over a regular period of time. Positioning is very definitely a powerful strategy, to cut through the clutter.

If you consider the successful brands in the Sri Lankan marketplace, these are brands that have been effectively positioned and offer meaningful benefits to target customers.

Cost effective communication strategies, which are effective, should also be evaluated. Mass media advertising is not the panacea for all products. The menu options are quite wide, even in Sri Lanka. Outdoor advertising, direct marketing, e-marketing, direct selling, sponsorships, merchandising etc., It is important to evaluate all options available, in line with the communication objectives, target audience profile, product/brand characteristics etc., There are many brands in Sri Lanka, that have been successful with minimum mass media advertising or not at all. The message is that there are cost effective methods to be followed. Do not underestimate the power of "word of mouth" advertising as well. In Sri Lanka, this is another communication medium. E-marketing although still in its infancy, offers great potential for the future.

This will naturally become popular, once the ownership of home computers increases. Even at the present state, many upmarket and specific products/services could be marketed directly to the end consumer.

Dealer and retailer power should be converted to the advantage of the marketer.

Dealers can be effective salesman, in an overcrowded market. When consumers are uncertain, as a result of the clutter, they will seek dealer/retailer recommendations. Hence dealers should not only be considered as distribution intermediaries but also as effective salesman for products and brands. This requires a different mindset and approach towards distribution.

The power of effective sponsorship activities, should not be underestimated. Sponsorships provide a distinct relationship between an event and the product/brand, sponsoring same.

In an overcrowded marketplace, astute sponsorship programs, can enhance brand awareness, brand image and brand recall. Take for example the sponsorship of the Sri Lankan cricket team, by the brand "Sri Lanka Telecom Mobitel". Not only will Mobitel be able to overcome clutter in Sri Lanka, but also in the global marketplace.

Merchandising activities are in most instances confined to putting up posters, danglers and streamers.

There is more to merchandising than this. Prominent and creative displays at Point of Purchase (POP), draws consumer attention and brings a product/brand into clear focus. Hence, out of the usual marketplace clutter. Mobile merchandise and illuminated merchandise can be very creative and effective, if used in keeping with product / brand limitations.

We observe in Sri Lanka, that many organizations deploy propaganda vehicles to sell direct to consumers and even sample products. This is an excellent medium to develop in a country such as Sri Lanka. In Sri Lanka, we have day/weekend polas, bazaar days, special events etc., which can be extremely good opportunities for direct selling, sampling, advertising etc., The whole idea is to create an impact, thereby highlighting specific products/brands.

High impact sales promotional activities can also draw attention to specific products/brands. However, the sales promotions must be really special and have the ability to rise above the regular promotional activity in the marketplace. This will highlight and provide the limelight to those specific products/brands.

* Are marketeers themselves adding to the clutter in the marketplace?

It is important for marketers to have a clear focus in their marketing activities. When marketing strategies are altered too frequently, often confusion prevails. Products are launched, relaunched and withdrawn without much strategic thought. Marketing communication is another activity, that adds to the clutter. The way to minimise communication based clutter is to adopt 'an integrated' approach to marketing communications. Systematic, integrated and relevant messages, should be communicated, on a consistent basis. Marketeers would do well to note this.

Price based promotions should be utilized carefully and not abused as it were! Marketing is not about discounting alone. Careful brand building, consistent promotions, clear cut pricing policies and excellent after sales service are important ingredients for success. Do not add to the confusion prevailing, through adhoc, unplanned price based promotions. It will probably do more harm than good, in the medium to longer term.

* Conclusion

As highlighted in this brief article, even in a marketplace characterised by clutter, sensible marketing can help keep products / brands focused, towards their target consumers.

Do not be pushed by competitor activity alone, but develop original strategies which are well thought out and formulated. Further, minimise the need for altering strategies too frequently. This does not help the marketing cause.

'To rise above the clutter in the marketplace, is the challenge thrown at brand builders".