Experience is the key
08 June 2006
Tarun ShuklaWith consumers screening out broadcast marketing messages, marketers have been forced to look at unconventional models of generating consumer interest
When Whirlpool US executive Scott Phillips invited locals to get a first–hand experience of jazzy kitchen appliances, his company risked inventing the first–ever Insperience Studio in Atlanta. Soon, people trooped in with vegetables and stinky clothes. Philips was not sure how such a store would benefit the company. Four years on, companies in India are falling over one another, replicating experience lounges across the country.
Microsoft Xbox 360 Lounge, BenQ IT Zone, Nokia Nseries Experience Zones, WorldSpace Lounge, Parryware Experiencentre, Philips Arena—they have all a simple raison d'etre: the need to be relevant with consumers where they shop, work and play. In other words, invite potential consumers to experience the product... experiences that are personally relevant, memorable, interactive and emotional.
And what about purchases? May be, may be not. "At the most superficial level, if the brand finds a high–profile area where there is a lot of foot traffic, the lounge provides value as a billboard. At a deeper level, if the experience within the store is unique enough, it will also generate PR coverage," points out Liz Bigham vice–president and director (US Brand Marketing), Jack Morton Worldwide, in an e–mail interview to fe.
Though the RoI of such efforts are difficult to gauge, recent researches have also backed the concept. A survey by Jack Morton Worldwide last year, found women and youngsters are highly influenced by experiential marketing—43% of the women surveyed, agreed they were to purchase a product or service quickly influenced by experiential marketing, when compared to traditional advertising channels (20%) and direct mail (37%).
No surprises that marketers are upbeat about their prospect in India. Says Scott Phillips—yes, his job is intact, and he is currently general manager, Global Brand Architecture, Whirlpool Corporation—when contacted through e–mail: "We've found that majority of customers who visit the Studio do purchase a appliance after their visit. It has allowed us to better educate thousands of sales associates about our products, increasing their enthusiasm for the products when helping customers on the showroom floor decide what appliances to buy."
Experiential marketing, in a way, takes off from the good old days of product sampling (that's not to say sampling is dead!), which purported to create a live encounter between a prospective buyer and a brand. Recall that haggard looking salesman in your last intra–state bus journey. He enters with a palm–sized lemon juicer (or any other weird device you can think of) demonstrating how juice extraction was never as easy. Next, you see he has sold at least five of those Rs 50–juicers without confronting much of bargaining.
Experiential marketing, as we see it today, takes this philosophy to the next level. The salesman now becomes the 'Lounge Manager'; the ambience is luxurious Italian upholstery, the juicer is replaced with a 5.1 home theatre system and the drinks are complimentary. Any complaints? Naresh Priyadarshi, head, business consulting, Synovate, observes, "Companies are moving swiftly to remove all possible barriers between the product and the consumer. These are ways of making the customer a prospective buyer and remove dissonance."
Just sample what's on offer. Philips, which has 43 Philips Arena brand shops across the country, boasts of a dedicated 'living room' where you can watch movies or check out your favourite soaps. Similarly, at the WorldSpace Lounge opened recently in Gurgaon (near Delhi) you can surf through 40 music channels while lounge managers field your queries on Jazz, Tamil classical, bhakti sangeet et al. At the upcoming Sahara Global Experience Zones, travellers can even experience a virtual vacation before deciding on the actual tour.
The pampering is not limited to hardnosed adults only; if you are the youthful gaming type, Microsoft is at your service. Microsoft's country manager (entertainment division), Mohit Anand, points out, "Our Xbox 360 lounge in Mumbai is the first of its kind in India and the reason behind it is simple: we want to drive consumer experience at the highest level. At Xbox, one can experience high dimension graphics and see the best of Xbox gaming."
Analysts believe marketers have been forced into looking at unconventional models of generating consumer interest due to a variety of reasons. On the one hand, we have a media reality in which consumers screen out broadcast marketing messages, on the other, we have a culture that is increasingly brand aware and at times fiercely loyal—conditions under which it becomes difficult for a new brand to break in. Says KE Ranganathan, director, marketing, Parryware, "Gone are the days when brands decided what customers buy. Today, brands along with customers are busy co–creating demands." Adds Aarti Mehta, chief marketing officer of WorldSpace (India) that launched its fifth WorldSpace Lounge last month, "It's all about romancing the content."
Unlike traditional showrooms the investment in lounges are much higher and malls are the preferred targets (read Spencers in Chennai, Forum Mall in Bangalore, Imax in Hyderabad, MGF in Gurgaon, or Crossroads in Mumbai). And so, as Jack Morton's Bigham observers, it is crucial that these leave a lasting impact on the consumer. Which can be achieved by integrating online promotions, podcasting, RFID (radio frequency identification) and mobile marketing.
But that's a different story altogether.