Our Thinking

In the last two decades, with the march of technology, increasing commoditization, increasing global sourcing and competition and increasing discretionary incomes across the boards, the consumer in Pakistan has gotten selective and buys only those products that precisely met their changing needs which unlike before  are not immediately obvious anymore. With the evolution of new forms of media, global outreach and the current hyper-fragmented channels, the marketing process too has evolved making life harder for the marketers in Pakistan.

In this new world of ‘value’ reconciling what the customer wants and then delivering on their expectations, has never been more important or more challenging. This is especially more-so, because in many of our

sectors, over the years consumers had been effectively taught to buy on price and price alone. Thus the PAS-Aurora Conference that took place at the Karachi Pearl Continental Hotel on the 20th of March, 2010 sought to answer these questions about the new consumer. If the presentations could be summed up in one sentence it would be ‘the customers are now fully in control and marketers are scrambling to understand what their customers value and the value they place on those values.’ The mood at the conference was entirely dedicated to the topic of seeking value in three key areas namely ‘the organization’, ‘the brand’ and ‘the customer experience’. It was especially interesting in hearing how the current state of the economy had altered the value equation and what the industry experts expected to see in the coming months / years.

Highlighting the changes between the old value seekers and the new, the conference started on a keynote session by Mr. Hamid Haroon, CEO, Dawn Media Group. His focus was the underlying morality that drove the

old-value seekers in creating for their consumers. He minced no words when talking about the short-termism of modern industry practices including the growing number of media & agencies offering kick backs to clients which he said “undermined the advertiser, media and society”. Writing off today’s campaigns, he remarked that “Advertising agencies today are low-med sweatshops for implementing strategies created in larger markets” and implored people to find answers that would actually create value for their consumers.

The session was followed by Mr. Aly Mustansir, Chairman, Pakistan Advertisers Society, who talked about recent initiatives taken by the PAS including banning advertising on pirated cable channels and establishment of the Consumer Multimedia Index. Jamal Mir, Ad Hoc Vice-Chairman, Advertising Association of Pakistan ended the session with a talk about the challenges facing the industry including Economic, Human Resource, Compensation, the problems of Media multiplication and the standards AAP was setting in driving value for the organization and the industry.

Seeking Value From The Organization

The session started off with Mr. Atif Bajwa, President, MCB presenting his views on “Internalising the

new  value equation” and talked about how the customer should be the starting point for all decisions. Talkingabout MCB’s strategic thrusts, he spoke greatly towards building a leading payments bank including becoming #1 in alternate distribution channels like the mobile phone. Citing numbers he said already MCB had signed up 50,000 users for its Mobile Banking initiative.
Subsequently Mr. Abrar Hasan, CEO, National Foods talked about “value driven strategies to meet consumer expectations”. Citing ‘The Consumer Decision Journey’ model published recently in the McKinsey Quarterly (June’09), he challenged the traditional linear progression of consumers from awareness through familiarity to sales, purporting that that the traditional funnel concept failed to capture all the touch points and key buying factors resulting from the explosion of product choices and digital channels, coupled with the emergence of an increasingly discerning, well-informed consumer thanks to the “epicenter of consumer driven marketing which was the internet especially during the active evaluation phase.”

He said that “40% of the customers changed their minds because of something they saw or learnt at the point of purchase. Therefore it was imperative to reach consumers at the moments that most influence their decisions.” His advice to create value to was to Invest in customer driven channels and win in-store. He ended his presentation on the note that “The key is not change… but to adapt and survive under rapid change.”

The final presentation of the session was delivered by Mr. Farhan Hasan, COO, UG Food company, titled “The smart organisation in a value seeking world”. He talked about how value was about a bundle of services for the consumer and not price. Talking about Pakistan being a ‘Sachet Economy’, he commented that if 2/3 rd of

world’s population made less than $1000 than why were marketers selling them products designed for those nations making 20 times as much. His value creation process involved targeting the aspirational classes with small quantities and larger volumes with good margins. He summarized his discussion as “high volume + high margin plus additional [sachet] volume with good margins = smart business sense”.

Seeking Value From The Brand

The immediate session which followed answered the questions as to what it took to innovate in advertising and provide value for the brand. Answered by Julian Saunders, Managing Partner, The Joined Up Company in his presentation,” Value for Time – It’s What People Really Value”, Olivier Auroy, MD, GS Fitch, Middle East who talked about “Why Good Design Never Lies” and Mr. Guy Winston, National Creative Consultant, JWT Pakistan in his presentation “Stop Talking, Start Involving”, these international experts focused on how content and delivery were the next wave of getting one’s marketing

message out. They talked about how creativity was going to be about creating content that was funny, amusing and could quickly be shared. Julian Saunders in his presentation advised to ‘Brand Play’. He referred to cognitive research that “what we remember is determined by how the experience feels when it peaks and when it ends”. He concentrated on providing simplicity (“don’t make me think”) and talked about how respecting time was also a sales strategy. Olivier Auroy on the other hand, focused his attention on how brands needed to remain accessible and relevant to consumers. He cited studies which proved that fun could change behavior for the better. He concluded with how people wanted brands to connect to their community, give them control, were friendlier and funnier.

Seeking Value From The Experience

The last two talks were delivered by Mr. Sirajuddin Aziz, CEO, Bank Alfalah who gave a thoughtful presentation on “Consumer Touch Points As Effective Communication Tools” whilst Mr. Karim Rammal, President Unicorn Consulting, concluded the session with ‘Meet The Digital Native’ advising marketers that that “…unless you bring something to the table – Inspire, Passion, Laughter, Curiosity, nobody cares if you’re on twitter”.

The conference ended on a high note delivered by Mr. Irfan Mustafa, VP & MD, Yum Restaurants on “Yeh Tera Pakistan Hai, Yeh Mera Pakistan Hai”.

If the conference has proved anything is that what really has changed is the way we implement marketing and the way we run our marketing organizations. In the oncoming world we will no longer talk about mass marketing. For all future marketers it will be vital to understand that the price-value equation will be different for each consumer. That’s when real value will be created.