Auto, Auto

“Auto Auto”. The passengers would call out. Loud and clear. The Yellow autos (the three wheeler bike or vehicle) spring into action. Autos are India’s lifeline. In a country where public transportation is either scarce or over crowded Autos provide an easy, cheap and an affordable way of travel. Autos or Rickshaws as they are called have become inseparable with the Indian culture. 

Autos have been associated with India and Indians. Right from the time when a traveler lands in the city to the time when they leave, autos become a part of you. Autos come in many shapes and the drivers can be as colorful as the auto itself.

Auto drivers can be rude, friendly, and smart or just like any one of us. They might be willing to ply on the government regulated fare, demand a hefty premium (extra) on the metered fare or simply demand a flat amount. They can be eager beavers smartly hailing you the minute they see you. Or they could be lords of all they preview – refuse to ply even you go up to them and plead your case. Your amazement would double when you see they still in the stand on your return trip. They just don’t seem to care or mind. Let us see how the auto owners have used innovative marketing to make more money or just stay ahead of the competition.

 

Stage Carrier instead of a contract carrier: By government rule autos are contract carriers and not stage carriers. Autos can take passengers from one destination to other and can’t pick up passengers from one bus stop and drop them at an other bus stop.

But many autos have become stage carriers and compete with local city bus service for the passengers. This is not legal but prevails in many parts of India. In many cities these autos are the only form of transport that the passengers can avail. Called seven seaters, Vikrams, sharing autos these are very popular.   

Carry school children: Many auto drivers have fixed income along with variable income. This is to buffet themselves from the vagaries of nature and sudden disturbances. Many auto drivers drop children to their school on a monthly basis. This assures a monthly business but the auto driver is tied up with a route on the morning and in the evening and this inhibits his flexibility and the routes that he can ply.  

Call Auto service: Prevalent in Gurgaon, call auto service is a new innovation. These auto drivers are better behaved, have genuine auto meters and come to your residence for a pick up. They would charge a premium of just 20/- Rs more for the service.

 

 

Flat amount charged per day: (double up as a tourist guide): Very popular in the tourist destinations the auto can be engaged for a fixed time and fixed amount, let’s say 400/- rupees and 4 hours and 40 kilometres. The auto can be used anywhere in the city and the bonus is that the auto driver would become the tour guide.

Contract with a company for a month: An interesting variation. This was deployed by one of the Territory managers that I worked with at Network limited. This TM had employed an Auto driver on a monthly basis. The auto driver had become so smart and so well versed with the happenings of the company that he almost became the personal assistant of the TM. Autos are also hired by companies for canvassing their products and services. A person with a loud speaker would slowly go from one locality in to another in an auto canvasing and displaying the products and explaining the services.

  

Conversion of old motorcycles such as Harley’s and Enfield bullets as autos: These converted autos called Phut Phuti (converted Harley Davidson and Royal Enfield bullet motorcycles) would chug along making “Phut Phut” sounds. This amazing contraction had the driver on his seat totally exposed to the elements of the nature. All his passengers would sit behind him. They are well protected and had a shade over their head. The Phut Phutis are no longer being used as they were not very stable and caused huge environmental pollution.

Autos as moving advertisements: Many auto drivers use the back side of the auto as a space for advertisements. Autos being very numerous are a very good method of promotion. Placing tourism brochures, brochures of hotels, visiting cards of shops selling trinkets and souvenirs in a pouch in front of the passenger seat also have been tried by enterprising auto drivers.

 

Direct Marketing - Seedhe Baat Dil se Dil tak (Straight talk - heart to heart)

Direct Marketing is  the total of all activities by which the seller who direct efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, the internet or personal visit from a prospective customer. It can be meant as having as few marketing intermediaries as possible between the seller and the buyer.

Traditionally Direct Marketing meant a direct interaction between the buyer and the seller devoid of any marketing intermediary. The best example can be a rythu bazaar (an Indian concept where the farmer comes to the market place and sells his product directly to the end consumer). This way the costs of distribution can be saved and the benefit can be shared between the buyer and the seller. 

The Advantages of direct marketing is that the consumers can be reached selectively, consumers can be segmented, and they can be reached with better frequency. The seller can plan his campaign to be specific and the programs can be made flexible. Timing can be monitored. Programs can be personalized. Direct marketing is more economical and the measurement of effectiveness of the promotion can be quite accurate so that possible interventions and corrective actions can be initiated.  

The disadvantages of direct marketing can be that the image of the direct marketer might not be as glamorous and sweeping as that of a marketer whom used TV, and Press advertising. TV and Press make the marketers appear big and they will be perceived as big companies. Content support in direct marketing might also be difficult as the maker of the product might not be the best person to market it too. That is the concept of different horses for different races come into the picture. Production and marketing are two different ball games and may be the same person might not be the best person for both the jobs.   

Best advertisements - SBI debit card and Reliance Mobile advertisements

SBI (State Bank of India) Debit card: An advertisement that stands out. It is a simple, no frills advertisement. A man walks out of an ATM and the Debit card (animated) says “why is that you use me only for drawing cash. Why don’t you use me for making purchases, online payment and for shopping?” I would say a brilliant advertisement. Many of us are still very scared of the Debit/Credit cards and use them very sparingly. We use it only to draw cash. In other words instead of drawing money from a bank’s teller we draw money from the ATM.

Research has shown that people spend less money if they have to count out cash and pay. And having cash also inhibits impulse purchases. As the bank that has the maximum number of credit/debit cards it makes sense for SBI to go in for such a campaign. Using the credit/debit card increase the spending. SBI makes money. It can collect money from the vendors where the cards where used. SBI makes money. It is easier to pay by card and if one pays by card again SBI gains. SBI is the biggest bank in India and that means more money in circulation. SBI would literally laugh it way to the bank – its own bank!

watch the advertisement at http://www.youtube.com/watch?v=SHy3U-vSY1k

Reliance mobile: India is one country where pre-paid connections in mobiles outstrip the post-paid connections by a huge margin. Prepaid is almost 4 times the size of post-paid. Pre-paid has many advantages. The customers can use it as much as they want and then they can control the usage. For example a customer can say ‘Rs 300/- is my monthly target’ and  take a pre-paid service, Once the Rs 300/- is exhausted he becomes cautious and uses the mobile only as a incoming call answering service.

Most companies make money on customers who use the service more frequently and pay more. Now a days lots of service are being used MMS, SMS, Internet, Incoming, outgoing, roaming etc. Reliance has come out with an interesting package. It is the Prepaid of the post paid  called unlimited post paid plan- That is unlimited usage and of any service for only Rs 1299/- per month.

The advertisement too is brilliant. It talks of a boyfriend/husband who tries in vain to increase the post-paid mobile bill of his wife/girlfriend. He uses all the services and that to very liberally. To his surprise and to the delight of his wife/girlfriend the bill is only Rs1300/-. ‘No it is Rs1299/’- says the smiling lady ramming in the psychological aspect of a sub 1300 rupees bull.

watch the advertisement at http://www.youtube.com/watch?v=DtSHw2fwcmM

Similarly Reliance has come out with a concept of a one family plan called all share plan. One family plan is a plan where the entire family can take a plan and share the expenses. An interesting concept I would say. This is rammed in by the advertisement where the daughter explains to her brother that he is not part of the plan as he is not their parents’ real son.

She goes on to explain that he was found on the steps of a temple. The crestfallen boy tries to slink away to his room. His sister then explains to him that the entire thing was a joke and that that he too is part of the family and he would be part of the family pack service from Reliance mobile. 

http://www.youtube.com/watch?v=xbWUUD9jRoM

RSVP, WOMBAT and other popular terms in advertising, media studies

RSVP (Respondez Sil Vous Plait – French). RSVP is usually mentioned at the end of an invitation for a function/invite. If are attending the function you are supposed to say "yes I am coming”. Depending on the number of responses suitable arrangements are made for the guests. So If RSVP is written do say if you are going or not. Keeping silent to RSVP is seen as a major Gaffe (mistake)!

WOMBAT - Word of mouth is the best advertising technique: It is often said that advertising is the most fun that one can have with one’s clothes on. So it is not surprising that advertising is entertaining and at the same time it could be misleading. Advertising is taken with a pinch of salt as it tends to glorify the pluses and gloss over the minuses. Like my good friend KVS Krishna Mohan said “it is very difficult not to be a hero in your own story”.

So claims in advertisements not taken very seriously. So it is important that we cultivate WOMBAT. Word of mouth from our friends, relatives and colleagues is seen as more reliable. After all our friends do not have any ulterior motives in recommending a product that she/he does not like himself/herself. So it is very necessary that the companies cultivate positive word of mouth.

Only three things unavoidable in the world: And they are Death, taxes and advertising. We are bombarded by advertising. So the catch and mice game goes on. The customers try to be as much away from advertising as possible and the advertisers want to catch them at all possible times and at all possible places.  

Man biting dog: Frequently cited in media studies. Dog biting man is not news rather it is the other way round. So when a copy of an advertisement is written it has to bite. It should have that element of surprise and intrigue. Otherwise the reader/viewer would be saying “Yawn! How boring, tell me another thing!”

The head line “No Mamata for CPM in West Bengal” is a very good example. Mamta Banerjee is the maverick TMC leader who ended the very long 34 year CPM rule in West Bengal. Mamata is Hindi/Bengali means Love. So the word Mamta became a very good tool for a clever headline. Similarly Jayalalitha the AIDMK leader who defeated M. Karunanidhi of the DMK prompted one news reporter to pen the headline “Jayalalitha shows no Karuna” Karuna in Sanskrit/Tamil means mercy. The thumping win of AIDMK over DMK was cleverly captured in the headline.

Winking at a girl in darkness: Trying to market a product without advertising is like winking at a girl in darkness. A girl should be winked in broad daylight. Winking in day light could result in plethora of responses ranging from a spectrum of responses including total ignorance to a similar winking by the girl. But this has to be done in broad daylight. Winking in darkness is a futile exercise as it is not even noticed.

Advertising agency related terms Part - II

In-house agency: An in-house advertising agency is owned and operated by its one and only client: the advertiser. Instead of a company outsourcing its advertising to an agency, its ad campaigns are mainly handled by its own in-house agency. The best example is Mudra which started off as an in-house agency for Reliance Industries and later went on to become one of India’s best known advertising agencies.

The big issue that a company has to address is: should it save the 15% commission by having its own in-house agency or should it try to maximize its 85% of its advertising spend by making its campaign open to all the advertising agencies. Once outside agencies are given a chance the survival of the fittest principle would kick in and the company will get a great advertising campaign. Some advertising may still be directed to outside agencies, usually on a per-project basis.

Bleed advertisement: Reproduce a drawing or photograph so that it covers the entire page (or poster), leaving no margin. An advertisement that runs to the edge of a page is called a bleed advertisement. It may bleed on three sides, two sides, or one side, leaving the white space on the other side(s) open for copy. Whether the ad bleeds on one, two, three, or four sides, most magazines charge a 15% premium for its use, since the size of the plate needed to print a bleed ad is necessarily larger than that for typical advertisements. Designed to get attention, a bleed ad allows the artist greater flexibility in expressing the advertising concept, because the printing space is larger.

Teaser campaign: Brief advertisement designed to tease the public by offering only bits of information without revealing either the sponsor of the advertisements or the product being advertised. Teaser advertisements are the frontrunners of an advertising campaign, and their purpose is to arouse curiosity and get attention for the campaign that follows. In order for a teaser campaign to be effective, the advertisements must have great visibility in print, broadcast, and out of home media so as to reach a great many people. Teaser advertisements are often used in the introduction of a major motion picture or a new product.

ASCI: The Advertising Standards Council of India (ASCI) (1985) has adopted a Code for Self-Regulation in Advertising. It is a commitment to honest advertising and to fair competition in the market-place. It stands for the protection of the legitimate interests of consumers and all concerned with advertising - advertisers, media, advertising agencies and others who help in the creation or placement of advertisements.

Deceptive advertising: is defined as "a representation, omission or practice that is likely to mislead the consumer" and "practices that have been found misleading or deceptive in specific cases include false oral or written representations, misleading price claims, sales of hazardous or systematically defective products or services without adequate disclosures, failure to disclose information regarding pyramid sales, use of bait and switch techniques, failure to perform promised services, and failure to meet warranty obligations.

Advertising agency related terms - Part - I

ABC: Audit bureau of circulation: of North America is a non-profit circulation auditing organization. It is one of several organizations, operating in different parts of the world that audits circulation, readership, and audience information for the magazines, newspapers and other publications produced by their members.

Rate card: Information cards provided by both print and broadcast media, which contain information concerning advertising costs, mechanical requirements, issue dates, closing dates, cancellation dates, and circulation data, etc. Rate cards are very creatively made as they have to catch the eye of the creative people in the advertising agencies. The media planning department in the advertising agency compares the rate cards of different publishers and broadcasters and prepares a competitive media plan which can maximize the advertising spend of its client. As a rule the publishers are not supposed to furnish the rate cards directly to the final customer but this rule is only being observed only in the breach.

Agency commission: the money paid to advertising agencies by the media (broadcast or print) for purchases of time or space made on behalf of clients. Since the ad agency saves the media the expense of direct sales and billing, the media allows the agency a 15% discount (16.67% for outdoor advertising), based on the gross advertising rate billed to the client. (The discount also serves as incentive to the agency.)

For example: If a company spends Rs 1,00,000 on advertising placed through a recognized ad agency, the agency commission is Rs 15,000 and the balance of Rs 85,000 is paid to the media. The agency commission system represents the basic financial structure of the ad agency business. The company has nothing to lose as it would have paid 1,00,000 whether it approaches the media directly or through the advertising agency.

INS: Indian news paper society: acts as the central organization of the Press of India, an independent body authenticating circulation figures of newspapers and periodicals in India. It is an organization which plays a major role in protecting and promoting the freedom of press. The society was founded in 1939. Its headquarters are at Rafi Marg, New Delhi.

INS membership comprises the owners, proprietors and publishers of print media who discusses and suggest various measures to the government regarding the problems related to the newspaper industry. It is a kind of pressure group which works to protect the interest of newspaper industry in particular and print media in general.

Accredited advertising agency: All the advertising agencies have to be accredited with the Indian Newspaper society. Accreditation is very important as it confers some special status and benefits to the concerned advertising agency. All accredited agencies get the full 15% commission that is paid by the publisher. They also get 60 days of credit from the concerned publisher. Accreditation is very important as blue chips, Government managed organizations like Indian railways and public sector companies get their advertising work done only by accredited agencies. Accreditation is the route a small agency takes to announce that it has arrived and joins the big league of national level advertising agencies.