They won’t buy just because it’s Diwali

Cautious spending. Slower offtakes from retail shelves. Malls high on crowds entering but low on shopping bags while exiting. Not the signs of a typical festive season. However this season is anything but typical. With inflation and economy taking a toll on everyone, these are tough times not just for consumers but also for brands.

What used to be a sure-shot windfall time for companies, has now become complex and uncertain. While we continue to see the usual marketing gimmicks of huge discounts, assured gifts and exchange offers on display, there is serious doubt among marketers if these will translate into the required number of sales.

But all is not lost. What brands need to realize is that they will have to play by a different rulebook this time. A rulebook that no longer allows them to use the same old tactics, but requires them to work much harder and probe a lot deeper.

So what do the rules look like?

Rule No 1: Do not spend; invest. Some brands believe that spending big bucks only in this season is all that’s needed to make consumers drool. Guess what, this spending in all likelihood is going to get wasted. Instead, invest in your consumers. Build affinity, relationships and a strong value proposition by constantly engaging with them. Only then will the rewards come. A packaged food brand that tries to entice with tasty gulab jamun and kaju barfi only 6 days of the year, will face stiff competition from brands that have built trusted associations of taste, hygiene and gift-worthiness over a period of time.

Rule No.2:  Do not vacate your core. Festive marketing needs to be an extension of your brand’s core philosophy; not fractured from it. For instance, a brand known to be premium and aspirational can’t suddenly become too easy to grab in festive season. Or a brand that stands for quality cannot stoop to low levels just because it wants to be present at a certain price point.

Rule No.3: Truly blend in. Putting a diya or rangoli visual in your communication is not blending in. But when the young girl in the chocolate ad puts the rich dry fruit collection box on the dining table as she comes home to family, it doesn’t seem so artificial. The larger message is not about the chocolate but about sharing love and spending time with your loved ones. The brand manages to become a part of the ethos of Diwali - family time, bonding, togetherness, and hence works.

Rule No. 4: Let the starting point be the occasion, not your brand. Often brands end up advertising services and products that have nothing to do with the occasion. Just because this is the season for indulgence doesn’t mean that consumers will pick up anything. So begin by looking at the characteristics, values and needs that come alive at the occasion, and see if there’s a role for your brand. A mobile phone /digital camera brand highlighting great quality pictures in low light is solving a relevant need, while an e-commerce brand that promotes sunglasses and books on discount, under the garb of Diwali dhamaka is not.

There could be many more rules, and you could make your own. But the key is to realize that this season, shortcuts won’t help. Festivals were and still are a fantastic opportunity. They allow brands to interact with several age segments simultaneously.  They give them a chance to widen their TG and get new consumers on board. They allow brands to share their message more easily as consumers are in a receptive and upbeat mood. They can even help brands get a positive rub off from the good vibe that’s in the air. The only thing to remember is to adopt strategies that are relevant to the occasion and make efforts that are genuine. Then nothing can come in the way of your brand enjoying a sparkling Diwali. 

http://articles.economictimes.indiatimes.com/2013-11-01/news/43592928_1_brand-diwali-dhamaka-family-time

Plan in Advance for Secure Retirement - Deccan Chronicle

“At 50,” said author George Orwell, “everyone has the face he deserves”. The aging face tells a tale— and no story does it tell more eloquently than the story of financial security. Worry lines are almost always incumbent upon financial problems and no Mona Lisa smiles possible under brows burdened by money worries. Thus, the retiree or the impending retiree shows his preparedness for retirement in worry lines or smiles.

Amit Chandra (not his real name) returned home from a dinner one Saturday about six months back when he felt a sharp twinge in his stomach. A visit to the family doctor the next day did not result in any relief to the persisting discomfort; it led, instead to a referral to a specialist at one of Mumbai’s best known hospitals. Just 48 hours after he was being toasted by friends at his retirement party, Amit was arranging for funds for an emergency operation — to stop the bleeding from an ulcer.

Sufficient health insurance cover ensured that Amit could afford the best treatment. But the worry is about the subsequent incidental expenses — among other things, the expenses of the special diet now needed the cost of repeated visits to doctors, and the higher electricity bills from the demands of the increased use of the juicer, mixer, air-conditioning and geyser. His daughter and son-in-law are anxiously re-organising Amit’s(small) investment portfolio, hoping to ensure that Amit and his wife have enough to live on and pay for the ongoing medical expenses. It’s becoming clear to them that they will have to help support the older couple. The worry lines have begun to appear also on their faces, extending from the faces of Amit and his wife, who, incidentally, suffers from asthma.

Retirement planning is rare in India, where financial dependence on children is high. Pension plans set up by employers are considered sufficient — though, all too often, these packages take a miserly view of inflation.

Amit was with a university for most of the 32 years of his working career; his monthly pension is around Rs30, 000, a meagre sum for living in Mumbai, and an impossible sum for their health-related needs, care that no health insurance plan will cover indefinitely.

Perhaps late for Amit, his experience has been a lesson for his daughter and son-in-law — benefit plans ordained as mass products by employers are just not enough. If retirement needs are specific to the individual, then retirement plans must be too.

There are various financial savings options to plan for ones retirement. The Pension Fund Development and Regulatory Authority, set up in 2003, regulates three broad types of pension schemes — the government pension schemes (such as the one that covers Amit Chandra), the National Old Age Pension Scheme for people living below the poverty line, and the private pension schemes / funds.

Pension plans from life insurers could be another lucrative option, which not only lets you plan for retirement in a structured systematic and disciplined manner but also provides protection against uncertainties. So much so that there are plans today which even ensure a guaranteed financial support for your spouse’s retirement even in your absence. These plans offer a wide range of options in terms of various benefits and payment schemes. Subscribers can opt for a payment plan based on their financial capacity, their projected needs after retirement and on the basis of the age at which they plan to retire.

A pension plan can be purchased on a one-time lump-sum payment (a better choice for those close to the age of retirement) or deferred payment of regular annual premiums over a period of time, which younger people can opt for more comfortably. The benefit of income after retirement can be disbursed immediately upon the subscriber’s retirement or, alternately, the subscriber could choose to defer the payment wholly or in part till such a time as he or she requires it; the monthly annuity would be calculated accordingly. Plans also allow for life-time annuity payments or payment for a guaranteed period of time. Some plans also offer the return of annuity amount to nominees, leaving behind a legacy for them.

Today, Amit and his wife are considering selling their two-bedroom apartment in Mumbai and moving to a smaller, cheaper town — they are not sure where! They still need a place where advanced medical care is available. This unhappy choice also means that will not spend their golden years comfortably in the security of a familiar neighbourhood, with an established support system run by long-known people, among old friends and regular acquaintances.

For Amit’s daughter, such an unhappy choice is no choice — she and her husband have begun to plan their future on realistic projections of pension needs and various eventualities, working inflation into their calculations. She’s working on her Mona Lisa smile!

By-

Ms. Anisha Motwani,

Director & Chief Marketing Officer

Max Life Insurance

Life Insurance: All you ever wanted to know

Confused about which life insurance plan to choose? Here’s a handy reckoner to help you choose the right plan.
Latte, cappuccino, or espresso?With milk or without?With sugar or without? One picks and chooses carefully to get one’s favourite cuppa customized to one’s taste. I’m sure there are other areas in one’s life one is equally picky about, say for example, which smartphone one flaunts, which sunglasses protect one’s eyes from the glare and so on and so forth. Yet, the same alacrity seems to be missing when one is making one of the most major decisions in one’s life – choosing a life insurance plan. Why? Especially when it’s the only way to financially protect one’s dependents and still fulfill the financial goals even in the event of one’s death.
While it can be a bit daunting initially since one is on unfamiliar ground, it is actually just a matter of getting in touch with the right advisor who will demystify the seemingly complex world of insurance and educate you about the plans that would work best for you. It is imperative that you understand the terms of insurance, weigh the options carefully and make an informed decision about the coverage that is right for you and your family. Basically, life insurance and living benefits insurance can be of two types: insurance that only protect your dependents, and insurance that protects your dependents and provides a savings and investment avenue as well.
Life insurance doesn't have to be complicated, and there are lots of ways we can help you make the right choice.
 First Steps
Before you begin the process, it is vital to get in a trusted advisor and discuss your needs and understand which options work best for you. It is important to establish what your need is and have a goal in mind. Once that is done, evaluate which life insurance policies suit those needs the best. Compare between policies to zoom in on the one best suited to you. Another important thing is to evaluate the rider options. Riders are attachments to your policy which entitle you to added benefits.
Equally important is to evaluate the company you are buying the policy from– you need to check for customer service feedback, claims settlement ratio, financial stability, distribution reach, payment facility provided etc. Once you understand the implications and repercussion of what you are buying, you will be able to choose the right policy. Once you receive the policy documents, go through the documents to review all what you have opted for. Also, re-visit your plan from time to time as needs and goals change overtime.

What you need to understand:
What types of insurance are there?
Understand what types of life insurance plans are available as it is important that you find out all you can about the kinds of cover available and understand the terminology. For instance, term life insurance policies offer death benefit only, whereas an endowment offers death benefit and also provides an avenue for safe and systematic savings.
What are the key drivers that make you save?
If you are looking at long term goals, then life insurance is probably the best solution as it allows for both savings and protection. Key drivers for savings could include your children’s education, their marriage or similar needs for which you need to think and plan long term and invest in a plan that matures and gives you the financial reprieve when you need it most. If you have already planned for your children then you may need to consider your own retired life, and plan accordingly.
How much cover should I have?
The cover you need is directly proportional to your personal life situation as well as the lifestyle you and your family want to lead. Typically, the rule of thumb is to have a cover of 10 times your annual income.However, there is no hard and fast rule here. Each one has different goals and varying premium paying capability. One needs to be realistic though.
The first step in figuring out how much is right for you is to estimate how much your family would need to continue its current lifestyle if your absence. It is also important to understand what stage of life you are in – a single person has very few responsibilities; as a parent you would have different responsibilities; and if you are approaching retirement your needs will be vastly different.
So say, you are 38 years now and you want an income of Rs 75,000 per month when you retire at 58 years. At the same time in case of your untimely demise you might still want to ensure your spouse to have a hassle free retirement. How do you choose the right plan? This is where agent advisor plays an important role. Get your trusted advisor to come in and discuss the best options available that will give you the income you want. Understand the implications clearly and once you are sure which plan works best – in terms of ease of payment (premium) and benefits provided – go ahead.
How do I know it’s the right policy for me?
Once you have an estimate of how much insurance/savings you will need, it's time to think about the type of policy that best fits your needs. Usually there is no one policy that can meet all your life insurance needs.
You can choose a policy depending upon the risk profile and how much time you have to attain the financial goal you are planning for – If you have a mammoth capacity for taking investment risks and your financial horizon is over 10 years, you may choose ULIPs with an equity bias. These policies are subject to market risks and they allocate your premium amounts in equity and debt depending on the type of funds you choose ranging from equity, debt and balanced fund depending upon you risk profile.
For the risk averse, traditional plans make the most sense. For instance, if you are a parent of a growing child, a single plan may not serve the purpose of providing for your dependents. You will need a plan for their future needs as well and something specific for the child's education needs. A combination of products works the best. Likewise, you may initially have a policy with no additional cover for disability due to illness or accidents, but later in life you may feel the need for such a cover.  

Should I throw in a cover that includes various untoward incidents that may happen?
Policies with such a cover, say for disability or critical illness, are often viewed as ‘expensive’. Some see it as money spent on policy features they hope or think they will never use. Yet without adequate insurance, you run the risk of financial disaster should anything untoward happen to you. The key is to buy the right type of insurance with the right amount of cover at the right time. Don’t get sidetracked by anything – match the right insurance cover for the right stages of your life.
Make it a habit to review your life insurance needs and change your life insurance cover whenever there is a change in the financial situation, such as a rise in your income or a rise in financial responsibility by way of an additional family member or the need to take care of aging parents or a large house loan. Each of these situations calls for review of insurance cover to ensure you are adequately covered at all times with the right insurance policy.
Here’s to a more empowered and insurance savvy you.
http://www.financialexpress.com/news/life-insurance-all-you-ever-wanted-to-know/1169882/0

Have we forgotten to set up social norms on social media in our blurry to expand that virtual society?

http://digital.impactonnet.com/143749/Impact/volume-10-issue-08#dual/16/2

For times immemorial societies created some socially accepted norms. The British were mostly known for their politeness, reserved and overtly formal manners. And even today they tend to stick to these social norms. The Americans are different as they are casual and gregarious in their societal norms. The Indian society has always been culturally rooted and hence respect, right values and decency are considered societal norms.

In India not only the society was divided into four sects, each of the sect had some socially accepted behaviours. And those social norms were followed so stringently that Yudhistir agreed to play chaupad the second time also, knowing fully well that he will lose his kingdom. The reason was that Ksatriyas were not supposed to decline any challenge.

But whatever be the manifestation, one common thread among all societies was some commonly accepted social norms of being responsive, courteous and pleasant in all social interactions.

Our society has changed dramatically since the times of Mahabharata and we have accepted modification of the expression of these norms even though we are still rooted. But the changes in social behaviour we have seen on technology enabled social media just tempt me to dub it anti-social behaviour. On social media, our self centered and narcissist self is at its peak, to the extent that we just ignore even the most basic of social etiquettes. Is it the reflection of times we live in or we simply forgot to set up some social norms on social media in our hurry to expand that virtual society?

A brief analysis of our own Facebook page will reveal that most of the time communication is one way; sharing what we find important for us, not what is of interest to our friend circle. Researches have established that people, who have greater number of friends on Facebook, tagged themselves more often and updated their newsfeeds regularly, scored highly on the Narcissistic Personality Inventory questionnaire. Social media offers these people a chance to self-promote by amassing a large number of friends, posting about their lives in detail and create an image which projects social success.

Is social media really a virtual alternate reality that gives us the freedom to behave differently from offline real world? Think of it if someone walks up to your work station to say hello to you and you don’t even look up from your computer and totally ignore her. I can hear a complete no-no from almost everyone. But when it comes to social media there are plethora of unanswered personal messages not just comments on your friend’s wall. We have even forgotten a basic courtesy of saying ‘thank you’ to a positive comment of our wall.

How many times people get into a discussion with friends on a topic of common interest? Every time we meet our friends. But social media does not reflect similar behaviour. How interesting would be the conversation if one person talks and others just nod. In the social media space ‘likes’ are the nods. A comment is what will fuel a healthy discussion. Sample this – while there are 1.9 billion likes each month in India, comments come to just 892 million each month on Facebook. While personalized communication is more satisfying and in line with our natural social behaviour, users prefer the lazy one click of the ‘Like’.

It is time to build conversation on social media. Moira Burka says that users who receive composed communication become less lonely while those who received one click communication continue to experience feelings of loneliness. Aren’t we shirking away from social obligations to our friends?

Brands operate as social units too. All social units develop a culture of their own. This culture is a result of relationships that exist between brands and its users. Values and culture of the brand is formed basis the community in which it exists. Can brands afford to behave differently on social media? Brands are able to garner millions of likes in a short span of time but are not able to engage these customers and prospects to build long-term relationships. It is becoming almost like a one-way conversation. The result is an endless list of brand followers but hardly and loyal customers.

In the offline world, while it is easy to make friends, it takes lot of effort to nurture those relationships. With brands too, it is important to build relationships with people that will resonate with them. Social media has provided an opportunity to interact with new friends and/or with those long-lost school and college mates. But problem with digital intimacy is that it creates ties that do not bind but only create a false feeling of a large social network.  And that is where brands can easily fall prey to.

Isn’t it then important that brands too stop running after the number of likes but build relationships, engage in authentic and compelling conversations that truly  share common values and thus last forever? It is not just important to have a long list of followers but it is important to continuously engage with them. Like human beings brands too have to carefully nurture and nourish these relationships to develop a strong social community that it operates in. Social networks of brands are driven by the same human values of transparency, ethics, responsiveness and intimacy.

The solution lies in accepting the fact that online is replicated reality of offline world. Be less focused on quantity. Curate, select and filter your friends and followers list and truly engage with like-minded ones. Brands should focus in engaging the people with better, richer and funnier conversations. It cannot be a pompous broadcasting mentality. Fundamentally, great friendship arises from understanding each other, so brands too must understand its followers for longer and lasting relationship. Let us make it one world – a world of friends and long-lasting friendships whether real or online.

You and your brand do not need to be Yudhishtir to follow social norms but you need to be Krishna who is always available to his real friends.

A Category connected to the best Milestones of life - Campaign India

http://www.campaignindia.in/Article/351419,a-category-connected-to-the-best-milestones-of-life.aspx