What sells? and why?

Humanization of Marketing:

For the last few days I have spent quite a few hours trying to think about why and how people end up buying products or services. I specifically recall this one night in January of 2017. Dinner was served early, the alarm was set and I was in bed by 10 PM. You must be wondering, Why all this preparation? Well, the goal was to wake up at exactly 12 AM in the morning and shop on Myntra!

 Now before you judge me as someone who is vain and has weird priorities, let me put this incident into context. 

For weeks in December of 2016, the advertisements for Myntra's 'End of Reason Sale' kept surfacing on all kinds of media. There were advertisements on the television, in the newspaper, on different websites and on social media. Celebrities such as Hrithik Roshan, P.V. Sindhu, Yuvraj Singh and so many others were endorsing the sale and asking people to 'get ready for the big sale!'. There was a sense of urgency and the sale was for just two days! 

Due the constant exposure to these advertisements and the hype that was created around the sale, I fell prey to it and hence the preparation. According to an article by Economic Times, Myntra's revenues showed a startling 160% growth and more than 2 million app downloads following the sale. This means that there were lots of people who set their alarms to 12 AM that day and this certainly made me feel better about my reaction. 

This example raises a few questions such as what really sells? and why? Marketing is indeed vested in the ways a human being thinks or functions. Its a reflection of human instincts that compels human beings to act. It revolves around consumer behavior and questions such as - What does the consumer want? What appeals to the consumer? How does the consumer react to different advertisement campaigns? What drives a consumer to shop? and so on.

With the availability of so many choices in the market, it is crucial for any product or brand to connect with consumers for it's success. Products should cater to the needs of the consumers and brands should possess personalities that reflect the personalities of the consumers themselves. All of this is made possible by the manifestation of basic human instincts in marketing. Kama (lust), Krodha (anger), Lobha (greed), Moha (emotional attachment),Mada (ego) and Matsarya (envy) are all negative human instincts. Sathya (truth), Dharma (righteousness), Shanti (peace), Prema (love) and Ahimsa (non-violence) are the positive human instincts.

Advertisements for products such as deodorants and condoms thrive on the aspect of lust and desire in human beings. These products are marketed as a means for people to satisfy their desires. Axe, the successful men's deodorant brand created a personality for itself. It in many ways defined masculinity and compelled it's consumers to believe that it is integral to their own masculinity. The product was portrayed as a weapon for seduction.

Anger is another strong instinct that has the ability to get people to act fast. Many advertisement campaigns have managed to capitalize on this instinct. Tata Tea's ' Jago Re' campaign raised many social issues through a series of advertisements that made viewers angry and compelled them to think. They also presented timely and strategic advertisements about women's safety following the Nirbhaya rape case.

Greed is an instinct that drives marketing. It is through this instinct that brands are able to sell their products to consumers who don't really need them. Products are packaged and presented in ways that give rise to greed in consumers. By presenting attractive discounts and showcasing the scarcity of a product, a consumer's greed is fueled. My reaction to Myntra's End of Reason Sale was definitely due to these very reasons. 

Envy and ego are again powerful instincts that are often used in marketing to make products attractive to consumers. Many products solely depend on these two instincts for their success. Products are made to appear as symbols of prestige. This gives rise to envy in the consumers and on possession of the product gives rise to ego. Bikes by Harley Davidson and products by Apple depend on these very instincts for sales.

Emotional attachment and love are similar instincts. However, the former has a negative connotation and the latter has a positive connotation. Products that bank upon the former instinct use the fear that human beings have towards loosing things and people they love as a tool of marketing. A good example for this would be Max Insurance's ' Second Chance' campaign that showed stories of people who had close encounters with death. Products that use the instinct of love on the other hand tend to present a positive outlook on human emotions. An example of this would be the award winning SBI's 'Great Dad campaign' that portrays the love between an army officer and his son. Surrogate advertisements for products like alcohol depend on human emotions and various social causes to sell their products.

Truth and righteousness are two positive instincts that go hand in hand. Some brands choose to be honest with their consumers and build a reputation for being trust worthy. It is also crucial for a product to deliver on it's promise for the consumer to believe in it. Maybelline's beauty products claim to be non-comedogenic and always have all their ingredients printed on the back of their products to prove their claim.

Peace and non-violence are ideas presented in advertisements that help promote the cause of NGOs and also help people identify with products for their initiatives. A good example for this would be an advertisement by Amnesty International that spoke about domestic violence against women. 

It is thus fascinating to see the manifestation of human instincts in marketing. This goes on to show that marketing is indeed a humanized process.

When Maslow met Marketing!

Interpretation of Maslow's Hierarchy of Needs in Marketing:

I'm fairly new to the concepts of both psychology as well as marketing and I stumbled upon a very interesting perspective of these concepts while doing some reading. " Marketing is like commercially applied psychology", says Social Media Marketer, Dylan Lee. This statement at first seemed quiet far fetched to me but as I kept reading about the interpretation of various psychological theories in marketing techniques, I started to draw parallels between the two fields. 

Maslow's Hierarchy of Needs is a theory that has found wide spread acceptance and application in the field of marketing. Abraham Maslow, the man behind this famous theory attempts to categorize and explain the nature of human needs and desires. This theory is usually represented in the form of a pyramid that shows the different stages of human needs.The connection between this theory and marketing is very simple.If a product or a service manages to attract a costumer, the costumer is encouraged to fulfill his/her needs by purchasing the product or the service.  

  

Maslow's Hierarchy of Needs states that human needs can be divided into five categories that are derived from human emotions and tendencies. The five categories of needs are defined as follows:-

1. Psychological Needs:

Psychological needs are categorized as the most basic needs such as food, clothing and water that human beings need to survive. Some of the products I relate to in this category are as follows:

(a) Aquagaurd Water Purifier: 

   

 Aquagaurd created demand for it's product by creating awareness about the need for water purification and other health related concerns. It made people switch from their ordinary steel filters to Aquagaurd. This product is trusted by many and has been in my house for as long as I can remember. The Product promises to provide water that has added minerals and water that is completely safe for consumption.

(b) Swiggy:

Swiggy, an instant food delivery app, is my absolute favorite. This app makes receiving food at my doorstep extremely cost efficient and convenient. This app also gives it's costumers exclusive deals and discounts. People have turned to Swiggy to order food from their favorite restaurants. Swiggy's   

advertisements show people of different genders and age groups using the app and are very appealing.

(c) Flyrobe:

Flyrobe is a very unique app that allows it's costumers to rent designer outfits for a few days at a very affordable price. I have used this app multiple times to rent designer outfits for special occasions. This app essentially gives it's costumers the opportunity to wear expensive designer clothing for various occasions.

2. Safety Needs:

Safety needs occupy the second level in the hierarchy. They address needs that are concerned with a person's safety and health. The products that I relate to in this category are as follows:

(a) Birla Health Insurance:

A health insurance is an absolute must in today's times and Birla has grown to become a very well reputed brand. Their advertisements effectively target the emotions and the fear of costumers and create awareness regarding the importance of the insurance.

(b) Godrej Home Security System:

Godrej's security systems provide peace of mind to costumers who worry about the safety of their loved ones and their homes. This system gives my family a sense of security as it protects against theft and other crimes. These systems are both wired as well as wireless and have unique features such as cameras with analytics, substance detectors and so on.

(c) Odomos Mosquito Repellent Cream:

With the significant rise in the number of deaths caused by diseases such as malaria, Odomos, a mosquito repellent cream has become very popular. I personally use this product because of the simple fact that it works. The product is also available in a variant that is suitable even for infants.

3.  Love/ Belonging Needs:

These needs are derived from the interpersonal relationships and emotions of human beings. These needs stem out of intimacy and friendship. Some of the products that I relate to in this category are as follows:

(a) Facebook:

Facebook, an American social media networking service company has changed the way humans communicate in the 21st century. Along with other social media networking sites, Facebook allows users to connect and interact virtually and has provided a substitute for physical intimacy and affection. I use Facebook to keep my friends updated about my whereabouts and vice versa. 

(b) Starbucks:

Brands sometimes become so important to people that they start identifying with the brands and form loyal brand communities. Starbucks is one such brand that has an enormous community. This community goes on to fulfill the emotional and intimate needs of consumers.

(c) Amazon:

Amazon, one of the biggest online shopping websites in the world, advertises itself as a one stop shop for the needs of the entire family. It upholds the importance of family bonding in advertisements that promote it's various new devices such as the Amazon fire stick. This appeals to the emotions of the costumers.

4. Esteem Needs:

Esteem needs stem from a human's want for attention, status, recognition and strength. Some of the products that I relate to in this category are as follows:

(a) Iphone:

Most of Apple's products indicate the status of their owners. Because of the way Apple has marketed it's products, their phones and laptops are considered to be a symbol of prestige and honor. The status that comes along with owning a very expensive Iphone, appeals to the esteem needs of a costumer.

(b) Fitbit:

  

Fitbits are very sophisticated fitness watches. Today, the concepts of health, dieting, yoga and so on are considered to be ' cool ' and this enables an expensive Fitbit to be a sophisticated symbol of status and esteem.

(c) Ferrari:

A Ferrari car is a symbol of strength, speed and prestige. It allows the costumer to feel a surge of esteem, when he/she drives the beautiful machine. Ferrari provides stylish cars that have excellent performance on the road. Ferrari is also a company that is very strict about it's licensing and only associates itself with big, international brands in order to maintain its market value.

6. Self - Actualization Needs: 

Self-Actualization deals with realization of an individual's full potential.In other words, these needs arise out of a person's self realization. It is extremely difficult for a product to reflect the entire identity of a costumer. Some products and brands that have managed to address these needs are as follows:

(a) Nike:

Nike launched a very successful advertisement campaign with a tagline that said 'Just Do It'. This campaign motivated the costumers to push through physical challenges and attain physical self actualization. The advertisement campaign promoted the brand as a whole and appealed to the costumers.

(b) Swatch Bharat Campaign:

The Swatch Bharat Campaign launched by the Indian government appealed to the self-actualization needs of the people and made them want to contribute proactively to keep their surroundings clean. The campaign was propagated as an extension of Mahatma Gandhi's principles and was a success.

Maslow's Hierarchy of Needs thus has great implications in the field of marketing and it's understanding is extremely crucial to execute the art of selling.

The Maggi Madness

Macro Factors That Influence Maggi's Instant Noodles

   - July 15, 2018

In an average Indian household today, the terms ' instant noodles ' and ' Maggi ' are synonymous.

This phenomenon certainly did not take place over night. The history of the now nestle-owned Maggi noodles is testimony to its own success as a product. The company that originated in Switzerland in 1884, under the directorship of Julius Maggi soon grew to become a pioneer in food production with its seasonings, bouillon cubes and instant noodles. In 1947, another Swiss transnational food company Nestle, took over Maggi and piloted the brand to new heights of success.

the bouillon cubes manufactured by Maggi that act as meat substitutes

It is crucial to assimilate the meaning of ' macro factors ' before understanding their influence on Maggi noodles. Macro factors are uncontrollable factors that are beyond the direct influence and control of a company. These factors come into contact with a company in the course of its functions and need to all work in favor of the company for its success. These macro factors and their influence on Maggi noodles are explained below:

1. Demographic Factors:

Demographics are traits that are used to determine consumer behavior and target consumers. Determining these factors will help maximize a company's profits. Maggi in India for example was launched in 1982, when the idea of instant food was non-existent. Its captivating two-minute tagline, and its 'Taste Bhi Health Bhi' campaign helped establish it as a convenient fast food. Maggi first targeted working women through their campaigns. This strategy did not work and after conducting surveys and studies, the company targeted children as its primary consumers. These strategies and the lack of competition contributed to its enormous success.

2. Economic Factors:

Regardless of the success of a company's strategy, it cannot afford to overlook economic circumstances such as inflation, demand, supply, recession and so on.These factors directly influence the profit margins of a company. Maggi noodles are extremely popular in countries such as India, Pakistan, Malaysia and Singapore and is directly impacted by the economic circumstances in these countries. Maggi has managed to price its noodles in accordance with the income of its target consumers and this has led to its success as a product. Maggi also managed to overcome the decline in its sales that took place in 1990 by changing its formula from fried base to oil-dried base for a better taste experience.

3. Natural Factors:

There are various natural factors that influence the success of a product such as natural disasters, climate change, lack of raw materials, access to waterways and other environmental concerns. 

Maggi noodles for example, has a 32% market share in Malaysia and will directly be affected by any natural calamity that takes place in the country and this could hinder the production of the product.

4.Technological Factors:

Technological developments have played a key role in the way products have been marketed and sold to consumers. Maggi has effectively used different forms of media to promote its noodles and also delivers it to its consumers using both online platforms as well as retail markets. From being a sponsor for 'Hum Log', a popular serial on Doordarshan in 1984 to launching a wide spread campaign called 'Main Aur Meri Maggi" to celebrate 25 years of success, Maggi has come a long way in India

.

5. Political Factors:

Political factors such as government regulations play a very important role in the success of a product. It is crucial for a product to adhere to the rules of food regulatory bodies of a country. In May 2015, Food Safety Regulators in Barabanki, Uttar Pradesh found Maggi noodles to contain MSG as well as a high quantity of lead. This led to the subsequent ban of Maggi noodles in various Indian states such as Gujarat, Andhra Pradesh, Assam, New Delhi and so on. This ban caused Nestle to recall stock that was approximately worth 320 crores in Indian Rupee. The ban was later struck down by the Mumbai High Court on 13th of July, 2015. Following this, Maggi launched aggressive campaigns such as the ' We Miss You Too" campaign to make a comeback into the market.

6. Cultural Factors:

The culture of every country is different and a product should reflect the culture of the targeted region in order to be successful. Maggi noodles has successfully imbibed the culture of India. Its many variants such as  Masala Maggi, Atta Noodles and so on reflect the food culture of India. The noodles sold in India are purely vegetarian, unlike the Maggi noodles sold in other countries. This also shows the affect of culture on the product itself. 

All these macro factors collectively affect the success of a product or a brand and Maggi noodles certainly still has most of these factors working in its favor.

Reference Links:

https://www.slideshare.net/probikersagar/brand-study-maggi

https://en.wikipedia.org/wiki/Maggi#cite_note-34

http://marketingdawn.com/pestle-analysis-of-maggi/

https://www.maggime.com/en/about-us

http://merofact.blogspot.com/2015/05/doubts-over-msg-and-lead-content-in.html

https://www.patrika.com/news/miscellenous-india/supreme-court-denies-to-give-clean-chit-to-maggie-orders-to-re-test-1159819/