Next Diwali, Let’s Avoid the Condescension of Doing Good? [Financial Express]

© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

This article was first published on May 27, 2022 in the Financial Express and is available here on the publisher’s website. In this article, I present my take on the “condescension of doing good” that is visible in recent Diwali advertising, and urge marketers to put human values first.

The version below includes links to the relevant advertisements that I discuss.

It was Cadbury that hit upon the idea of brands doing good during Diwali in a seriously big way – the 2020 ad from Cadbury Celebrations showed how small local stores that were hit by the pandemic could be brought into the customer’s consideration set through geography-based hyper-personalization. “This is not just a Cadbury ad,” they said, and so we believed: the ad nudged us towards local stores. Thus it was that in the midst of the pandemic, Cadbury found a way to do good and be good, and yet gain marketing momentum.

But the next year, as the prestige factor was upped, Shah Rukh Khan’s charisma was deemed essential to do the same job for a similar ad by Cadbury. In this ad, Shah Rukh Khan names local stores in his voiceover and this, again, was powered by technology. It wasn’t too bad, except the realization that our purchases of Celebrations were funding the expense incurred in engaging the celebrity actor.

But this year? With its #ShopsForShopless ad of 2022, Cadbury has, despite its best intentions, fallen prey to “purpose”, the new catchword in marketing. Somebody (or worse, everybody) at Cadbury seems to have decided that for Celebrations to stand out, it had to be tagged with purpose. So, now that good old eating and gifting are not enough for Diwali, the Cadbury ad tells us to scan a QR code on the sweet box, help roadside hawkers set up virtual shops, and buy from such shops. For the kind of “help” that they received, the gratitude in the eyes of Damodar (not Damodarji?!) and his helper is nauseating in its excessiveness.

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Why the Netflix business model will take more than a quick fix [Forbes India]

© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

This article was first published on May 27, 2022 in Forbes India and is available here on the Forbes India website. In this article, I present my take on the key issues at Netflix and a consumer-centric ecosystem approach to solve these issues.

Here is the full text of the article (caution: long read ahead!).

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“You can have mine”—be it a pencil during a kindergarten exam or one earpiece of a pair of earphones, or even a Netflix password, the tendency to share is innately human. A business model that views sharing as a threat is simply swimming against the current.

Netflix’s loss of 200,000 subscribers in less than 100 days to March 2022 has been surprising and yet, in hindsight, quite inevitable. For over 20 years, this much-vaunted disruptor of the movie industry has played the same game. The decline in subscriber numbers is just another indicator that it is time Netflix recalibrates its business model which is no longer the recipe for success that it once was. Indeed, the growing young population in the so-called emerging markets might well have been prolonging the death of a cracking business model that has ceased to be about customer value.

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The Customer Unmasked: What the Indian shopper will buy when the pandemic is over and out (Economic Times Brand Equity)

© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

This article was first published on March 15, 2022 in the Economic Times Brand Equity Blog and is available here on the ET website. In this article, I present my take on what the “customer unmasked” would be like. Here is the full text of the article (caution: long read ahead!).

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With the pandemic on the decline, it is a good time for marketing managers to gather their thoughts on what the future will bring. Shopping behavior of customers is going to change, but in what way? Five key insights tell us what the post-pandemic future of shopping could look like.

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Potential Customer, or Buyer? A ‘Hand-Raise’ Cannot Tell You

© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

Remember that time you went to buy clothes – you casually touch or look at a dress and the salesperson starts following you? From that point on, you are pressed with clothing suggestions, hand-guided to the trial room, and complimented as you try something on, all the way till you step into the payment queue. (Wonder how this works at an AmazonGo store.) And all you wanted was to “look” at a few clothes! And if you really liked something, you would pick it up. If you needed help, you would ask. (Of course, I could be exaggerating, it has been years since many of us went on a shopping trip just for fun. Hopefully, not any more.)

Apparently, by touching or looking at a dress (before the inconspicuous salesperson’s eagle eyes), you have engaged in a “hand-raiser” – you have shown interest in buying. But this is where a huge sea of miscommunication separates the customer and the company/salesperson. The customer, by their own definition, is a “potential” customer and just wants to look. The customer, according to the company, wants to buy and would like to be helpfully nudged till purchase. Clearly, this does not make for an easy customer relationship!

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The Digital Customer: Differences from the Traditional Customer and Implications for Businesses

© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

Teaching in a virtual classroom over the past few months has made me think about how the thoughts and actions of digital customers are different from what marketers have traditionally thought of as customer behavior. The pandemic has accelerated the change by getting people to engage in activities that they carried out either infrequently or probably never, be it online shopping, online banking, working at home, or even using a laptop. This article is an attempt to examine how today’s digital customer differs from the traditional customer, and the implications that this holds for businesses. The views presented here are based on my observations and do not claim to be comprehensive.

First, the digital customer is often, but not always, characterized by behaviors that digital technology allows for. The most common behavior is that of easy switching between activities, which was first evident when the television remote came into the market. Switching occurs because consumers want variety, can easily move between windows, and there are lots of activities competing for their attention – motivation, ability, and opportunity, as consumer research would call it.

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Tell Stories to Sell

Nobody sees the whole, nobody can, at least. And so we extrapolate without even realising we do so. Very often, it is this extrapolated version of reality that determines our action and reactions. In business, this means that companies end up telling stories in order to sell.

Both brands and their buyers (customers) tell stories to each other, about each other. A brand that provides a coherent, consistent story to its buyers finds that the customers stay loyal. And this, despite there being strong competitive pressure, and minor market mistakes on the brand’s part.

Telling the right story is as important as providing the right service or the right product. A Cafe Coffee Day experience consists of the not just the coffee, and not even the ambience. Today’s customers view the brand in the context of their own lives. For instance, a birthday celebration at Cafe Coffee Day as compared to one at an Indian food place. And then the photos posted on Facebook with comments.