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MARKETING TO THE

AFFLUENTPRESENTS

Brands are leaving no stone unturned in their questto attract this consumer group. An analysis.

A SPECIAL REPORT BY AFAQS! REPORTER

Consumers in India havealways been pretty trickyto double-guess. And

business continues to strugglewith defining target marketsbased on the most logical meas-ure - household income.

Experts have their own definitionand they qualify this with labels likesuper-rich, rich, middle, lowermiddle or strivers, consuming class,aspirers or affluent, top end of themarket or mid-market and so on.These labels, instead of reassuring,often leave one feeling even moreanxious. Such classifications arehotly debated or accepted with asceptical shrug.

The prime reason leading toguesses about the consumer’s class isthat private wealth creation in Indiahas accelerated rapidly. If theeconomic reforms of the ’90sunleashed the pent-up energy ofIndia’s entrepreneurs, the pastdecade has seen rapid growth of theaffluent class.

The recent National Council ofApplied Economic Research(NCAER) report on Earnings and

Spendings reveal that, for the firsttime, Indian households with highincomes outnumbered those in thelow category at the end of 2009-10.Today, India has 46.7 million highincome households compared to 41million in the low income category.

In another study (Capgemini-Merrill Lynch World Wealth Report2010), there are 1.3 lakh dollar-high-net-worth individuals in Indiacompared to less than 25,000 adecade ago. These are individualswho have in excess of $1 million asinvestible surplus annually.However, the NCAER findingsclassifies households earning over Rs1.8 lakh a year (under 2001-2 baseprice) in the high income category. Itis in this paradox that the Indianaffluent reside.

Says Santosh Desai, managingdirector and CEO, FuturebrandsIndia, “The heterogeneity of theIndian consumer makes it difficultfor marketers to slot a single group asaffluent. A farmer buying a high-endtruck is perhaps more affluent than acity slick senior management staff ina large organisation.”

CHANGING COLOURS

The affluent Indian consumershave evolved over the years.

They are those who have a largeamount of wealth and spendingpower, which is most likely to bereflected in their high-income pro-file. In 2006, when The KnowledgeCompany (a division of TechnopakAdvisors) produced the first compre-hensive study on trends in Indianluxury, it pegged 1.6 millionaffluent/rich households inIndia. In 2009, the NielsenUMAR (upper middle andrich) report put a figure of 2.6million to households withmonthly incomes of over Rs40,000.

“When we set out onestimating the number of newsuper-rich households, wedefined households with anannual income of Rs 40 lakhor more,” says ArvindSinghal, chairman,Technopak Advisors. In aspan of less than five yearsthe stereotype of the affluentclass has changed

dramatically.If earlier, the notion of these

consumers was that of the scions ofthe royalty, old Indian businessfamilies or film stars; the list nowalso includes entrepreneurs, farmers,employees in large organisations,

DISCOVERING THE AFFLUENT

INDIAÊS AFFLUENT

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They come in varied shapes, sizes and style quotients. Successful entrepreneurs, senior executives, rich farmersor generations of rich families. How do marketers view the affluent consumer? By Narayan Iyer

Unlike affluence,luxury is more of anindulgence than a

necessity. Though luxuryhas never been easy todefine, the elusiveness

and concept of mystery ishighly desired amongst

luxury consumers.

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traders - both retail and wholesale,agricultural commodity traders,contractors and professionals such aslawyers and doctors.

Geographically too, the Indianurban growth story that until nowwas driven largely by metros, is nowmoving beyond, into smaller townswhere the affluent profile is fastemerging. “The growing affluencelevels, increased awareness due tomedia penetration, improvedconnectivity and significant changesin consumption patterns with highaspiration levels of small-town Indiaare compelling marketers to takenotice of a new affluent class,” saysAshok Rajgopal, partner, media andentertainment, Ernst & Young.

The one commonality, across theclass of affluent, that emerges is thatthese are people who are financiallywell-enabled. “They may havelacunae in many other areas such as

education, geography or health, butthe ability to splurge good moneyover good and bad products alike,distinguishes them,” says HarishBijoor, CEO, Harish BijoorConsults.

To some, it also means lavishness,comfort, opulence, sumptuousness,or even extravagance. It is thesevarying factors that are makingmarketers, advertisers and brandmanagers alike warm up and reachout to this consumer class.

FINDING THE AFFLUENT

There has been a gradualincrease in spending power

which has moved from the metrosto the satellite towns around them,over the years. Now it is going fur-ther, and the demands ofconsumers here are different. “Thesale of luxury goods beyond thetop 15 cities including the metros

is an indicator of the shift in afflu-ent buyer destination,” feels Desai.Consider Aurangabad, the city inthe ‘backward’ region ofMarathwada, better known for itspoverty, acute water shortage andlack of industrial development. InApril this year, it managed to makemany marketers take note of thecity when 115 individuals placedorders for new Mercedes cars.

“From a marketer’s standpoint,various things are happening.Affluence levels are going up,connectivity to smaller towns hasbecome better, logistics areimproving and organised retail isgrowing much faster in key urbantowns and smaller towns,” saysRajgopal. This has led to a situationwhere affluence combined with theavailability of products or at least ameans to get those products out to

those places, is creating the spurt inconsumption.

About 22 key urban towns aregrowing and getting bigger and moreaffluent according to the IndianConsumer Spectrum of Urban IndiaReport by Indicus Analytics, aresearch firm.

Marketers are chasing thegrowing number of affluent in therest of India because of the potentialand the need to tap this segment. “Astudy of 100 cities’ consumptionspending by us shows that metrosconstitute about 30 per cent of thetotal consumption market,” saysLaveesh Bhandari, director ofIndicus. This indicates that the keyurban towns, the rest of urban Indiaand rural India together garneralmost 70 per cent. Given the largeconsumer base of these markets, anincrease in share of relevant

SPECIAL REPORT

150

Source: Capgemini-Merrill Lynch, World Wealth Report 2010

Û In India, the HNWI population grew50.9% in 2009.

Û India also has a relatively highmarket-cap-to-GDP ratio raising theHNI population

Figures in Â000

RICH PICKINGS

0

50

100

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Source: NCAER, Earnings and Spendings report, 2010

Û In 2001-02, the number of highincome families was only 13.8 million

Û 62% of Indian households belong tothe middle class that comprises theaffluent at the top end

Figures in Rs

THE HIGH INCOME FAMILIES

84 126.7

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90

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0

40,000 to1,80,000

Below40,000

Above1,80,000

Source: Ernst & Young, The New Market Shehers Report

Û Metros

Û Rest of urbanIndia: Urban cities other than rural India

Û Key Urban Towns

THE NEW MARKET DYNAMICS

Mumbai,Kolkata, Delhi,

Chennai, Bengaluru,Hyderabad

Pune, Chandigarh, Jaipur,Ahmedabad, Lucknow, Ludhiana,

Cochin, Vijayawada, Visakhapatnam, Nagpur,Patna, Surat, Coimbatore, Jamshedpur,

Amritsar, Trivandrum, Nasik, Bhopal, Indore,Vadodara, Kanpur, Madurai

Aurangabad, Allahabad, Gwalior, Jodhpur, Raipur,Bhubaneshwar, Goa, Pondicherry, Aligarh, Moradabad,Rohtak, Rourkela, Udaipur, Anand, Faizabad, Hassan,

Shimla, Roorkee, Shillong

4 3afaqs! Reporter, August 16-31, 2 0 1 0

“To be affluent in today’s world is not to indulge; it is

to do with living better, convenient, smartand realising years of aspirations.”

SANTOSH DESAI, MD AND CEO, FUTUREBRANDS INDIA

“The high end of affluent are forever peripatetic souls who travel a lot, buy a lot,eat very little, savour the best things of lifeand do most of their eating with their eyes

rather than with their mouths.”HARISH BIJOOR,

CEO, HARISH BIJOOR CONSULTS

“Growing affluence levels and increasedawareness is due to media penetration,

improved physical connectivity and significantchanges in consumption patterns.”

ASHOK RAJGOPAL, PARTNER, MEDIA AND ENTERTAINMENT,

ERNST & YOUNG

“Marketers should stimulate desire and capture the now rapidly increasing

spending potential of the affluent in Indiawith a sharper focus across segments.”

ARVIND SINGHAL, CHAIRMAN, TECHNOPAK ADVISORS

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consumers would imply largernumbers being added in thesemarkets than in the metros.

A COMPELLING CASE

The affluent tend to be verydifferent from those less eco-

nomically fortunate. “Affluenthouseholds tend to have lifestylescharacterised by lesser physicalwork, greater expenditure onentertainment, less time spent onday-to-day necessities of house-hold chores and occupation,”explains Singhal.

Marketers need this lens to view

the target market, as it will allowthem to communicate better withwhat is fast emerging as the newfuture market. They also need tounderstand the psychographics ofthis target class and their attitudestoward life.

A few years ago Bijoor's companydid a typecasting exercise across ninecountries to assess how many typesof people exist in different cities(Types were classified by theirsimilar buying behaviour). In NewYork, they found 14 different types ofpeople. In Boston, they found nineand in Tokyo 11.

In India, the diversity wasastounding. In Bhopal, they found213 types and in Vijayawada 171types. “This is why marketing inIndia is regarded much moredifficult than fighting for pieces ofmarket share in the West,” he says.

With an increase in the sales ofLCD televisions and wellnessservices in smaller towns, companiesneed to devise innovative strategies.“Advertising could also be differentand may need to use localreferences,” suggests Desai,identifying strategies to reach this

target audience. While the realities ofthe affluent beyond the metros maybe different from the urban or metroconsumer, his expectations andaspirations are the same.

“A marketer has to aim ataspirations, not at realities,” suggestsBijoor. Though the complexities ofpinpointing the affluent willcontinue to exist, marketers,advertisers and media planners willcontinue to face challenges inreaching out to this class. What isclear and evident is the need to focuson innovative ways to be relevant tothis growing target group. �

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4 4 afaqs! Reporter, August 16-31, 2 0 1 0

Someone truly said that the richare different from most of usbecause they have the money.

But the rich are unlike each othertoo.

Savvy marketers know thatfinding this difference is the key tosuccess in marketing to them. Thelanguage for the affluent is differentfrom what is used in most masscommunication. Moreover,sophisticated and affluent buyers donot have the time to shop andnegotiate as they did when they werebuilding their fortunes, which makesit important for marketers to perfecttheir communication.

Affluent consumers are becomingincreasingly selective aboutproducts. Media channels that allowcompanies to communicate withconsumers are growing in diversityand reach. The result is thatmarketers are increasingly focussingon differentiating their products andcommunicating their values topotential customers.

Marketing to the rich should beabout creating salience that will getallure and buzz. “When I was atAmex, we did an event withAbhishek Bachchan in Goa creatinginnovation and freshness that gavecustomers something to talk about,”recounts Amit Dutta, managingdirector, Luxury Hues and CEO,Luxury Marketing Council of India.

Affluent buyers value theiranonymity and don’t flaunt their

wealth. “They are demanding andprefer to buy brands with areputation for quality and stick withthem once they find the right fit,”says Prathap Suthan, nationalcreative director, CheilCommunications India. Buying forvalue or price (sometimes both) theylook for experiences that will enrichtheir lifestyle. The brand propositionis as important as the product. Theaffluent buyer will spend on anexpensive watch, as long as it is abrand he associates with.

BRAND POSITIONING

Brand-building is a different ball-game in case of affluent goods.

“Every affluent brand has a certainbelief and ideology. It also speaks acertain language,” says Prasoon Joshi,executive chairman, McCannErickson, India. Thus, when adver-tising an affluent brand, it is thebrand’s attributes that are key. “Youwill never find the price tag in aRolex watch ad. You will find thatthey have a new model and the loca-tion of the store where you can pickit and no more,” explains Suthan.

It is true that affluent brands areoften confused with luxury brands.Though there seems to be a thin lineseparating the two, in reality thedifference is stark. A luxury brand isto be flashed and flaunted, unlike an

affluent brand.Creativity plays a key role in

creating an affluent image. Manyaffluent brands achieve authority as aresult of the creative talent of theirdesign teams who respect the brandheritage and yet continuouslyreinvent it. Says Ashish Chordia,director, Porsche India, “For us, thepotential buyer is a person whowants a car that is high on luxury,performs at par with a sports car andis sporty for driver and passengersalike.” Porsche follows a strongdirect communication policy with itscustomers and prospects with highquality, updates on new products thatare sent personally.

RIGHT WORD, RIGHT TIMEINDIAÊS AFFLUENT

Communicating to the affluent should neither be too overt nor too covert. Striking the right balance willachieve the goal. By Narayan Iyer

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“Social media could be harnessed well forreaching out. If one of them tweets about aproduct and is followed by 500 people, the

marketing is automatically done.”AMIT DUTTA, MD, LUXURY HUES AND CEO,

LUXURY MARKETING COUNCIL OF INDIA

“Affluent shoppers flock to select brands notbecause they don’t care about price butbecause the service these brands provideadds value to the shopping experience.”

PRATHAP SUTHAN, NATIONAL CREATIVE DIRECTOR,CHEIL COMMUNICATIONS INDIA

“The brand attributes need to be well under-stood and not compromised or diluted. It’s

tricky if a communication experiment fails. Ithas adverse impact on the brand.”

JOSY PAUL, CHIEF CREATIVE OFFICER ANDCHAIRMAN, BBDO INDIA

“The affluent space is competitive but,not yet crowded, so one needs to be

careful about brand positioning and brandheritage when targeting the affluent.”

PRASOON JOSHI, EXECUTIVE CHAIRMAN, MCCANN ERICKSON, INDIA

“Most of our communications, including advertisements, are subtle and at

all times catch the eye of the successful and the discerning.”

ASHISH CHORDIA, DIRECTOR, PORSCHE INDIA

STRAIGHT TALK

It is a tough call for marketers tocreate that halo around their brand

to attract the affluent. “The aura ofthe brand needs to exist for it toexemplify exclusivity, value and snobappeal,” says legendary adman,Alyque Padamsee. This can be builtby increasing the exclusivity quotientwhen looking at a communicationstrategy for the affluent.

“Deep down, if you understandthe human emotions associated withthe brand, no medium is bigger thanthat,” says Joshi. Thecommunication technique adoptedfor a high-tech gadget will be starklydifferent from say a financial orhospitality service.

The communication experienceneeds to be consistent and uniform.“The premium private bankingservices offered by us espousedifferent brand attributes comparedto the main ICICI Bank,” saysChanda Kochar, managing directorand CEO, ICICI Bank. While thebasic banking and finance productsuit will be the same across bankingcustomers, private banking clientsenjoy services and benefits that makethem feel their affluence.

A high-end luxury home, forinstance, will have attributes beyondprice and look for buyers who sharecertain similarities. When MantriDevelopers created 11 exclusiveapartments in Bengaluru, it madesure that the prospective buyer waschosen from a list of 100 (not basedon one’s ability to pay) like-mindedprospects.

“Some years ago a premium bagbrand managed to create affluence byholding a party where a few amongstthe guests had the bags with themwhen they arrived. Without placing alogo or mentioning it, it generatedthe aura amongst those who did nothave it,” recollects Padamsee. Thebrand managed to strike a chord withthe target and many asked for it later.“The affluent are a well-connected,close-knit community. Any

communication that can turn into acocktail or dinner table conversation,achieves the task of reaching them,”suggests Suthan.

Says Josy Paul, chief creativeofficer and chairman, BBDO India,“Whatever the brand and theconsumer type, the communicationwill be both above and below-the-line, planned to suit what needs to becommunicated.” Special events andother public relations efforts must becarefully coordinated to convey thedesired image of the brand. Forinstance, the magazines selected foradvertising a fashion brand are oftenunconventional and trend-setting. Itis the kind of people who read them,not the numbers, which matter.

A new medium that is fastcatching up is in-film placement.This creates the buzz, which needsto capitalise on other means - say, aselect screening or a meeting withthe brand ambassadors to maintainthe exclusivity. “The movies inwhich the brand appears, thecelebrities and pop icons whoendorse the brand must also beselected carefully,” warns Padamsee.More often than not, as the affluencerises, exclusivity goes up too. “Directcommunication with customers andprospects is our preferred mode ofcontact,” stresses Chordia.

It is for this reason that socialmarketing has a huge fan followingamongst the affluent. Testimonialsand recommendations do the trickbetter. For instance, the hospitalitysector identifies that frequent guestsrelish inconspicuous service as wellas having their preferences for allsorts of things, including food anddrink remembered by hotel staff.

For successful communication toreach the affluent, one needs todevelop a good public relationsprogramme that speaks to theseconsumers in innovative and non-traditional ways, communicatinghow the experience a brand providessatisfies their emotive needs. �

Inputs by Ankit Bhatnagar

SPECIAL REPORT

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DRIVING IN STYLEWhy BMW India is the No. 1 in the luxury car segment in India and how it manages to portray a symbol of dynamism.

COMMENT

For BMW, business is directedby a clear value system thatguides management actions.

Seen in this light, a distinctive coursedefines not only what you do andhow you do it, but also what you donot do. If you concentrate on yourstrengths and anticipate the chal-lenges of the market, novel solutionscan be found. The difference is deci-sive. It is the difference between‘being pushed’ and ‘making yourown way’, between imitating andpioneering, between quick resultsdue to short-term actions and thelasting success generated by yourown strength.

At BMW India, we decided tostand our ground in a fiercelycompetitive environment with newideas and the strength to promoteour new products. In absolute terms,India cannot compete with otherhigh-volume single markets yet. But,the future belongs to India. If youwant to benefit from the dynamics ofthe Indian market later, you need toact today. This is what we did. Wewere prepared to meet the challengeshead-on to ensure our company’ssuccess. These qualities enabled us toweather stormy conditions andcontinue to invest in our future. Wewere able to anticipate trends andthat gave us an edge.

Our strategy has been to embarkon an aggressive product offensivewith rapid market expansion throughgreater customer intimacy. We haveaddressed these throughcompetency-enhancement across alllevels seeking new businessopportunities. As pioneers inbringing luxurious dealerships to

India, we set a decisive course bysetting up BMW dealerships ofinternational standards across allmetros. We have set very highstandards in service quality andcustomer care in India, which meetthe expectations of our customers.

And this is exactly how weposition ourselves to redefine luxury,focusing on individuals, recognisingfuture challenges, promotingcreativity, and being the leadingsupplier of luxury products andservices for individual mobility. Wealways concentrate on our strengthsand thus on the implementation ofthe luxury claim which we conveywith each of our vehicles. We do notmake compromises. This has beenour strategy in India, where wecurrently have 16 BMW dealerfacilities. As we embark on the nextphase of our dealer network strategy,BMW India will further expandoperations by establishing itspresence in 10 more cities.

This year, we plan to introduceBMW Financial Services India,which will function as a non-banking finance company once itgets the necessary regulatoryclearances. This divison will offersolutions for Retail Financing forBMW customers and also offerinsurance solutions to its customersthrough its cooperation partner. Wealso plan to introduce a pre-ownedcar business with the launch ofBMW Premium Selection in India.Everything about a BMW says

quality. So whether your BMW isthree weeks or three years old, it isstill the ‘ultimate driving machine.’

Also, with our enhanced productportfolio we have engaged with ourcustomers and prospects ininnovative dialogues to ensure thatthe brand affinity transforms intoproduct ownership. There have beeninitiatives such as the BMW GolfCup International across 10 citiesand the BMW Art Cars exhibition,held at the Jahangir Art Gallery inMumbai. Conceptualising the BMWStudio at Janpath, Delhi as a venuewhere our customers can indulgewith the brand in an exclusiveenvironment is another. There arealso formal dining and wine-tastingevents at leading BMW dealershipsacross India.

To reiterate the focus of thebrand, we have adoptedcommunication of the rich heritageof BMW Eras through associationwith leading fashion designers andevents such as the India CoutureWeek. For us, if actions submit to thevalues recognised as being ‘on-brand’, it will cumulatively build theorganisation’s desired long-termreputation. If not, we appreciate thatit risks fragmenting what our brandstands for, and we won’t go with theidea, however compelling it is. Thisdoesn’t mean the brand is rigid, nordoes it deny BMW opportunities.Rather, it serves as a framework fordecision-making, enabling thebusiness to feel confident that all itsoperational decisions are buildingthe brand towards its long-termambitions. �

The writer is President, BMW

By ANDREAS SCHAAF

Is a Mont Blanc customer affluentor a broadband connection hold-er? Is a Tata Safari owner in

Rohtak affluent or a technologycompany manager driving theHonda City? This target group is anightmare for media planners whoare grappling with getting the rightmix of medium and media to reachout to the target.

According to the Ernst & Youngreport on the New Market Shehers,there has been a significant uptake inthe leisure and lifestyle spends on

consumers in the key urban towns(KUT) as well as rest of urban India(ROUI). “Media spends are movingtowards non-metros, with the KUTsand ROUI increasing their share ofad spends and volumes,” says AshokRajgopal, partner, Ernst & Young.The report pegs KUTs and ROUI topotentially command 40-50 per centof India’s urban advertising spend.

Unlike brands in the luxurysector (Bentley or Armani), affluentbrands are more easily within thegrasp of ordinary consumers. Says

Nandini Dias, COO, LodestarUniversal, “The traditional way ofprofiling an affluent consumer bydemographics, psychographics orthrough SEC classification is passé.Now we map by the number andkind of durables in a household.”Affluent products are considered byconsumers to be those which arebetter than the norm, but stillaffordable - a plasma TV or a C-segment car. “With technology beingable to map consumption pattern it isnow possible to gauge affluence by

mindset mapping, through creditcard usage, financial investments andlifestyle indicators,” she adds.

IDENTIFYING THE MEDIUM

Says Amin Lakhani, head,exchange, Mindshare Media, “I

would be cautious and go accordingto the client’s need before workingout the right media for the productand brand to reach its desired target.”Take the Tata Sky set-top box. Aminrecollects the debate revolvingaround this product was largely if it

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REACHING OUT It’s the affluent that media planners are grappling to reach. By Narayan Iyer

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was for the affluent or not. “To asksomeone to spend Rs 4,000-odd on abox and then pay monthly charges towatch TV was daunting,” herecounts. With multiple touchpointsreaching this target, it is important toget a mix that appeals them.

“Imagery is of essence whiletalking to the mass affluent. Nomedium per se can deliver imagery.The aspirational element is bestbrought alive through a premiumlooking TVC or magazine ad whichis aired in niche channels and largeformat ads in magazines,” says SudhaNatrajan, CEO and president, LintasMedia Group. The output throughthis media mix is different for eachproduct category. When Audilaunched in India, it mentioned itsarrival by detailing showroomlocations. “Most often, a consumerlooks at a product or a brand, getscurious and looks up the net to figureout details on price and locationbefore getting on to consuming theproduct,” says Lakhani.

“Different companies havedifferent strategies. For example,companies have tied up withmagazines like Elle, Cosmopolitanand Vogue to launch affluentproducts catering to women,” says

Dias. In-film placement of premiumbrands in the recently-launchedAisha is an example of using amedium to target the affluent.“OOH, too, can reach the affluent ina very effective way. The placementof screens and the streaming targetedadvertising in recent years has beenvery effective,” says Lakhani. “Forthe super affluent, a credibleplatform for engagement is critical.Brands usually work on customisedevents and media properties toengage this TG,” adds Natrajan.

CUT THE CLUTTER

Advertisers and media plannersagree that a mix of above the line

(ATL) and below the line (BTL)advertising is what works in gooddose. For a brand like Samsung thathas products for the affluent acrossgeography and class, a combinationworked well. It adopted road-shows,event partnerships in KUTs andROUI for BTL activities, whileadvertising on mass media.

More and more brands arelooking at celebrity endorsement.“Getting Aamir Khan for the TataSky commercial set the brandimagery and perception in place forthe target,” explains Lakhani. Aviva

uses Sachin Tendulkar from time totime to interact with existingcustomers and serious prospects.

High-end affluent consumers arebest targeted by creatingenvironments for them to feel theirpower and exclusivity. “Limitedaccess to word-of-mouth experienceis fairly common with this category,”says Lakhani. But, these are found towork most often with luxury brands,where the snob value is more. Sinceluxury consumers place a highpremium on heritage and exclusivitythan the price, it is best left to createan imagery that fits into this targetthrough BTL initiatives. Traditionaladvertising for this class is more amatter of information. “Placing adsin niche magazines, airport loungesor duty-free shops tend to workbetter for these products andtargets,” adds Lakhani.

One cannot miss out the power ofsocial media and the internet. Withinternet gaming not restricted by anybarriers, it is interesting to note that50-60 per cent of Bigadda’sregistered users are from non-metros. According to the Ernst &Young study, the portal is

increasingly gaining advertising fromconsumer durable manufacturersand high-end FMCG products for itsdraw with the non-metro consumer.When Westside decided to launch itsyouth brand, Nuon, it tied up withMTV and went for an advertiserfunded programme with them.

There are instances when thecommunication fails to achieve thedesired results. “Direct mailers areassumed to work with this category,but I have found instances when ithas failed to do so,” recounts Dias.The mindset that luxury products arebest advertised in glossy magazines isalso a myth. Mont Blanc and Rolexfind equal placements in newspapers.

The affluent mindset is one that isdriven by knowledge (most admit todoing a lot of research before apurchase) and practicality (they lookfor value in their purchases and needto see the tangible benefits ofspending more on a product).

Media planners can play the roleof helping the affluent withinformation, while reaching out tothem through their most preferredmedia platform. �

Inputs by Ankit Bhatnagar

SPECIAL REPORT

Source: E&Y The New Market Shehers All Figures in %, 2009

SPREADING OUT

Metro KUT ROUI Rural India

Consumer durables (appliances) 50 30 NA 20

Consumer durables (electronics) LCD TV 70 30 - -

Consumer durables (electronics) CRT TV 10 30 30 30

Branded clothing 65-70 20-25 10 -

Cars (under Rs 8 lakh) 40 40 20 -

Financial services 40 30 15 15

Women's personal hygiene products 35 30 20 15

Two wheelers 20 30 30 20

A comparison of media spends in metros and other cities

Û Current Ad spend in the metros may have come down to 40-45% of the national mediaspend. A large portion of this has moved to KUTs and ROUI. High value product categoriesare still metro dominated, though there is a marginal shift in ad spends to KUT and ROUI.

“The touchpoints for this target segment areinnumerable as they have access and the

disposable income to experience it.”NANDINI DIAS,

COO, LODESTAR UNIVERSAL

“The mass affluent tend to state they watchinfotainment, music and movie channels inEnglish in dipsticks but most of the time is

spent on cricket, mass channels,Hindi/regional movies and news.”

SUDHA NATRAJAN, PRESIDENT AND CEO, LINTAS MEDIA GROUP

With the recently launched Ahmedabad edition, Mint has further strengthened your ability to reach to key decision makers in all top metros. Clearly, advertising with Mint makes complete business sense.

Now also available in Gandhinagar, Baroda, Surat and Rajkot.

MINT, INDIA’S NO.2 BUSINESS PAPER NOW IN AHMEDABAD.

Moreover, 3 out of 4 Mint readers do not read any other business daily.

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New technology has made the task of marketers that much simpler by selectively reaching the high-end consumers.

Make no mistake. The superrich India may just be only10 per cent of the more

than a billion population but is bigenough for the world marketers torehash their marketing strategies.

Just to get our math right this 10per cent is more than the populationof Canada, Australia and France puttogether! However, numbers just donot tell the true story, especiallywhen guessing potential consumers.

Our 2009 media consumptionstudy throws a lot of light on howthe Indian consumer has been usingmedia. For instance, what were thetriggers which influenced theaffluent Indian consumer? We foundthat they have lapped up new brands,new products, new technology andlast but not the least - the reason forour intellectual power - the zeal tolap up more knowledge. This zealfor knowledge has empowered theaffluent Indian to adapt to threeimportant attributes: product, brandand technology. Hence, therelevance of the concept of targetedmarketing. After all, one mustremember that ‘no two consumersare the same.

Let’s understand the averageIndian who inadvertently consumes6.5 hours of media every day. Incontrast, the affluent Indian interactswith media for 9.3 hours. Thoughthis may seem to be high, the graphwill indicate the way media isconsumed. The affluent Indian stillspends 34 per cent of his timereading the newspaper but theaverage Indian spends more than 50

per cent of his time with newspapers.Of this additional 43 per cent ofmedia exposure, 38 per cent of theincreased consumption is due tointernet usage. One could set ahypothesis here claiming that theaffluent consumer seeks mediawhich he can control in terms ofcontent and preferred time.

Taking the story about ever-increasing consumption of digital

media further, here are a few factsthat may not surprise you at all.Internet usage has further increasedwithin 62 per cent of these affluentconsumers in the last one year and 55per cent of the users claim it wouldfurther increase in the coming times.

Morphed telecom devices andtelecom service providers are theones who have got the mantra right.This is further heightened by betterinternet connectivity throughincreased broadband services. Theproduct development around thetheme of ‘Pocket Internet’ of Aircelsays it all. The once-regional player isnow the key challenger brand acrosscircles. LG is another example whereit has integrated the young,enigmatic John Abraham with socialnetworking.

One needs to use this newmedium of connecting with thedigividuals (digital individuals), notjust individuals. New technology hasmade the task of marketers thatmuch simpler by selectively reachingthe high-end consumer who still isdifferent in psychographics andusage through digital media. Theadvent of social media and its impactis playing a big role with many smalloutfits, no more leaning ontraditional medium and using thesocial media effectively.

Let me now, like an informedresearcher, show you two sides of thesame coin and then leave it on you todecipher the right mantra.

This is how digital media helps amarketer: • Reach and usage of digital media

is on the rise • Assured advertisement exposure • Targeting of consumers is more

precise• Innovation at the marketing

executives’ finger tips• Any time is prime time • Individualistic consumption and

what does the affluent consumerconsume more than the othersfrom the digital media

• Reading other people's socialnetwork profile page

• Reading a blog and commenting • Reading customer ratings or

reviews of products/services • Reading online forums or

discussion groups. �The writer is director,

Synovate India

Source: PAX Digital Life 2009 across eight countries

EXPOSURE TIME

AN ENGAGING MEDIUMCOMMENT

1 hour 26 minutesReading newspapers/magazines

1 hour 59 minutesWatching TV/recorded TV programs

2hours 16 minutesListening to radio/recorded music/podcasts

2 hours 2 minutesUsing Internet for work or personal use

1hour 53 minutesEmail/chat/instant messaging

(Daily media consumption patterns)

Morphedtelecom

devices andtelecomservice

providers arethe ones whoseem to have

got themantra right.

By RAHUL VARMA

This special report has been brought to you by Mint.Mint's unique editorial style and the exclusive partnership with The Wall Street Journal has already made it the staple read of the top-end business decision makers nationally.

For details on how your brand can reach the top-end audience that matters, please call Rakesh Shah at +91-9810566654 or email rakesh.shah@livemint.com