Description
CASE STUDY OF D DECOR
From an insignificant presence in the Indian home décor space to a strong brand name, upholstery fabrics and curtains manufacturer, D Décor has come a long way. The brand building efforts have been pushed ahead by the company?s objective of occupying the consumer?s mind as a B2C brand. The decision to shake off its B2B approach came in the wake of realigning the company?s distributional strategy, followed by aggressive communication plans. Pitch takes a look at the brand?s transformation and future marketing plans. D Décor first began operations in 1999 and started its brand building efforts in the Indian market in 2008. Justifying this move, Ajay Arora, Managing Director, D?Décor says, “We?ve been present in the domestic market in a very insignificant manner from 1999 to 2007. From 2008 onwards, prior to the international recession, we took a strategic look at how we wanted to distribute our product in India. We finally launched our brand and started a communication exercise in August 2008.” According to research and ratings agency Crisil, the strong brand image has helped the group to maintain its operating margin at over 25 per cent in the past, despite increasing market competition. Creating a market In addition, the organised retail market and boom in real estate has provided further impetus to the industry. From selling mostly through distributors and being active at the backend, the past two years, witnessed a rethinking of the B2B model which the company was following. A B2C company now, sans any retail frontends, immense efforts were and are still being made to makethe ultimate consumer, who is graduating owing to heightened exposure, income levels and aspiration, aware of the brand. “I think, D?Décor has tried to, for the first time, clarify to the customer that just like in other industries, there?s somebody who?s making the product and there?s somebody who?s selling it. In the absence of a „creation brand?, the consumers began to look at the retailer as the brand,” says Arora. He also adds that in categories like these, the consumer ultimately buys the product and that, being a decision which in most cases, is incentivised by aesthetic attributes, price and at most, the trust that links the consumer only to the retailer. According to Brand Expert, Harish Bijoor, “The important aspects for brands like these, is what they achieve in terms of distribution and„distributor oiling? is what I call this. Distributors from the B2B segments are linked directly to the consumers who are the end points in the B2C model.” Therefore, the passage for D?Décor, describes Arora, saw pushing a new name into the market as the first door that needed to be unlocked. What followed was an intensive showcasing of the capabilities of the brand. “Now, we?re in the stage where the effort is to engage with the consumer in a manner where he or she demands D?Décor?s newest range.”
Star connect Currently, the brand has roped in tinsel town?s most talked about couple, Shah Rukh Khan and Gauri, as its brand endorsers. Further, the focus of the communication is on the woman of the house, whose decision reigns supreme when it comes to decorating her house, even if the husband is a superstar like Khan. Facilitating a differentiation from competition, which comes from organised as well as unorganised players, and mid-sized companies, is the challenge most pertinent to this industry. “We didn?t have the consumer at the last point, so we had to have a distinction in place. At the same time, we wanted make the retailer feel encouraged enough to push our brand over others.”
Ajay Arora, Managing Director, D’Décor Articulating this further, Ashoo Advani from Chlorophyll Brand & Communications Consultancy says, “The key is to create a differentiation. The trade also needs a reason to support the product or offering. It should feel motivated to sell the benefit of your product to the customer. Creating intangible differences is necessary. However, it is important that whatever is happening in the campaign and all corresponding marketing activities come back to that differentiator.” This gigantic task of probing the customer to recognise, acknowledge and come back to the brand has seen D Décor toss three campaigns from its satchel. From „Innovating for Homes? which was followed by “No Matter What You Choose, It?s Always The Right Choice,” to its most recent property called “Your Room Next.” This one is hinging itself on colossal participation by offering 100 free home makeovers to its consumers. With its campaigns D?Décor markedly brought the celebrity couple in Shah Rukh Khan and Gauri Khan to power the brand. Was this the ideal approach? According to Bijoor, in a commodity oriented market such as this one, “which is sandwiched between very organised players in the premium space and unorganised ones at the other end, brand ambassadors bring with them the awareness scores and
scales that catapult unknown names into the forefront.The same happened with D?Décor, which was essentially taken forward by Shah Rukh Khan. Typically, it?s a great piece of strategy to use.” Inviting someone with stature and someone who has the appeal of a homemaker gives a positive rub off to the brand. Ashoo Advani, however, has a different opinion on celebrity dependence. He says, “In the absence of a strong proposition, the tendency is to use a celebrity. My worry with Shah Rukh Khan is that he?s being used by too many people, right from Tag Heuer to Videocon to Hyundai. Having said that, because they?ve also used Gauri, it makes it a special Shah Rukh Khan ad.” Advani is also of the view that the belief that one can leap frog the popularity curve by getting celebrity endorsement, is not a good one. Arora explains the rationale that went behind putting a value by adding brand ambassadors to its wagon, who had magnificent influential capacity. He says, “There were three aspects which were considered. First was, to use a celebrity or not to use one. We were a little quick to decide that we wanted to use one. This industry does not have the numbers that match, say, the telecom or automobile industry, as far as ad spends are concerned. We would definitely not be able to get the frequency of advertising because of the budgets. So we needed something that could get quick attention at a national level. And we knew that the use of a celebrity will get us exactly that.” Mapping the consumer’s mind The tangible measure to this success, according to Arora, is in the sales figures which have considerably amplified. “From Rs. 200 crore in 2008, we have reached Rs. 500 crore which means our sales have become almost two and half times.” Spending almost 10 per cent of sales on marketing, Arora divulges vertical spends as 60 per cent on Television, 15 per cent on Print, 20 per cent on Out of Home Advertising and 5 per cent on Internet and Cinema. In the digital space, with the Website specifically, the brand?s attempt has been to educate the consumer and simultaneously accelerate an experience, which the virtual platform can leverage. “On the net, you can calculate the consumption of fabric required for say, your curtains, so that there is no scope for the consumer to be misled. There is also a 3D Modelling or visualiser where you can look at the fabric being applied.” This facet of experiential marketing, reckons Arora, is go ing to be taken forward with lounges that are slated to open at the Delhi, Bangalore and Mumbai airports. Choosing it right The retail price points of the brand range from Rs. 300/metre to Rs. 3,000/metre with an average price point of Rs.600 per meter. And while detailing the segment of potential consumers, Arora feels that the brand?s appeal floats from the middle
class to the rich and crossing the higher middle class en route. Arora does feel that the creation of a new Indian home and the endeavor to improve it, takes place primarily for the 30-35 year age group and thus, within the territory of the target audience, this set is promisingly powered. Also, basing a valid presumption on the way households, particularly in India function, D?Décor estimates the worth of the female consumer at a notch higher than her male counterpart. This is clearly communicated across the brand?s campaigns. VidyadharWabgaonkar, Senior Vice President of Strategic Planning at DraftUCB +Ulka, comments comprehensively on D?Décor?s existing milestones when he says, “B2C effort calls for an integrated, synergised, simultaneously running, multi-thread effort that is far more complex than commissioning a campaign. And, an eye catching campaign is but a small beginning.” He sees several elements which can contribute to charting out the success of a brand existing in the home décor and furnishing industry. “Seasonal flow of new designs, tracking new trends in décor, strong presence in modern retail, a well working influencer (architects and interior decorators) loyalty and support program, strong service network for products such as wall-papers, promotion through sample flats in new housing schemes, advertorials in magazines, ensuring new news that truly solves consumer issues (e.g. stain resistance, mites resistance etc.) are all a part of marketing in this category.” Hence, at levels more than one, it could be safe to say that cementing position and proposition and maintaining relevance to an ever evolving social fabric is what could ensure optimism ensuing for the brand. With a target which sees sales being doubled, retail points increasing from the current figure of 600 to a thousand, and the accessibility barometer crossing the 100 city mark, branding efforts for D Décor will only need to be refined and strengthened.
doc_145055041.docx
CASE STUDY OF D DECOR
From an insignificant presence in the Indian home décor space to a strong brand name, upholstery fabrics and curtains manufacturer, D Décor has come a long way. The brand building efforts have been pushed ahead by the company?s objective of occupying the consumer?s mind as a B2C brand. The decision to shake off its B2B approach came in the wake of realigning the company?s distributional strategy, followed by aggressive communication plans. Pitch takes a look at the brand?s transformation and future marketing plans. D Décor first began operations in 1999 and started its brand building efforts in the Indian market in 2008. Justifying this move, Ajay Arora, Managing Director, D?Décor says, “We?ve been present in the domestic market in a very insignificant manner from 1999 to 2007. From 2008 onwards, prior to the international recession, we took a strategic look at how we wanted to distribute our product in India. We finally launched our brand and started a communication exercise in August 2008.” According to research and ratings agency Crisil, the strong brand image has helped the group to maintain its operating margin at over 25 per cent in the past, despite increasing market competition. Creating a market In addition, the organised retail market and boom in real estate has provided further impetus to the industry. From selling mostly through distributors and being active at the backend, the past two years, witnessed a rethinking of the B2B model which the company was following. A B2C company now, sans any retail frontends, immense efforts were and are still being made to makethe ultimate consumer, who is graduating owing to heightened exposure, income levels and aspiration, aware of the brand. “I think, D?Décor has tried to, for the first time, clarify to the customer that just like in other industries, there?s somebody who?s making the product and there?s somebody who?s selling it. In the absence of a „creation brand?, the consumers began to look at the retailer as the brand,” says Arora. He also adds that in categories like these, the consumer ultimately buys the product and that, being a decision which in most cases, is incentivised by aesthetic attributes, price and at most, the trust that links the consumer only to the retailer. According to Brand Expert, Harish Bijoor, “The important aspects for brands like these, is what they achieve in terms of distribution and„distributor oiling? is what I call this. Distributors from the B2B segments are linked directly to the consumers who are the end points in the B2C model.” Therefore, the passage for D?Décor, describes Arora, saw pushing a new name into the market as the first door that needed to be unlocked. What followed was an intensive showcasing of the capabilities of the brand. “Now, we?re in the stage where the effort is to engage with the consumer in a manner where he or she demands D?Décor?s newest range.”
Star connect Currently, the brand has roped in tinsel town?s most talked about couple, Shah Rukh Khan and Gauri, as its brand endorsers. Further, the focus of the communication is on the woman of the house, whose decision reigns supreme when it comes to decorating her house, even if the husband is a superstar like Khan. Facilitating a differentiation from competition, which comes from organised as well as unorganised players, and mid-sized companies, is the challenge most pertinent to this industry. “We didn?t have the consumer at the last point, so we had to have a distinction in place. At the same time, we wanted make the retailer feel encouraged enough to push our brand over others.”
Ajay Arora, Managing Director, D’Décor Articulating this further, Ashoo Advani from Chlorophyll Brand & Communications Consultancy says, “The key is to create a differentiation. The trade also needs a reason to support the product or offering. It should feel motivated to sell the benefit of your product to the customer. Creating intangible differences is necessary. However, it is important that whatever is happening in the campaign and all corresponding marketing activities come back to that differentiator.” This gigantic task of probing the customer to recognise, acknowledge and come back to the brand has seen D Décor toss three campaigns from its satchel. From „Innovating for Homes? which was followed by “No Matter What You Choose, It?s Always The Right Choice,” to its most recent property called “Your Room Next.” This one is hinging itself on colossal participation by offering 100 free home makeovers to its consumers. With its campaigns D?Décor markedly brought the celebrity couple in Shah Rukh Khan and Gauri Khan to power the brand. Was this the ideal approach? According to Bijoor, in a commodity oriented market such as this one, “which is sandwiched between very organised players in the premium space and unorganised ones at the other end, brand ambassadors bring with them the awareness scores and
scales that catapult unknown names into the forefront.The same happened with D?Décor, which was essentially taken forward by Shah Rukh Khan. Typically, it?s a great piece of strategy to use.” Inviting someone with stature and someone who has the appeal of a homemaker gives a positive rub off to the brand. Ashoo Advani, however, has a different opinion on celebrity dependence. He says, “In the absence of a strong proposition, the tendency is to use a celebrity. My worry with Shah Rukh Khan is that he?s being used by too many people, right from Tag Heuer to Videocon to Hyundai. Having said that, because they?ve also used Gauri, it makes it a special Shah Rukh Khan ad.” Advani is also of the view that the belief that one can leap frog the popularity curve by getting celebrity endorsement, is not a good one. Arora explains the rationale that went behind putting a value by adding brand ambassadors to its wagon, who had magnificent influential capacity. He says, “There were three aspects which were considered. First was, to use a celebrity or not to use one. We were a little quick to decide that we wanted to use one. This industry does not have the numbers that match, say, the telecom or automobile industry, as far as ad spends are concerned. We would definitely not be able to get the frequency of advertising because of the budgets. So we needed something that could get quick attention at a national level. And we knew that the use of a celebrity will get us exactly that.” Mapping the consumer’s mind The tangible measure to this success, according to Arora, is in the sales figures which have considerably amplified. “From Rs. 200 crore in 2008, we have reached Rs. 500 crore which means our sales have become almost two and half times.” Spending almost 10 per cent of sales on marketing, Arora divulges vertical spends as 60 per cent on Television, 15 per cent on Print, 20 per cent on Out of Home Advertising and 5 per cent on Internet and Cinema. In the digital space, with the Website specifically, the brand?s attempt has been to educate the consumer and simultaneously accelerate an experience, which the virtual platform can leverage. “On the net, you can calculate the consumption of fabric required for say, your curtains, so that there is no scope for the consumer to be misled. There is also a 3D Modelling or visualiser where you can look at the fabric being applied.” This facet of experiential marketing, reckons Arora, is go ing to be taken forward with lounges that are slated to open at the Delhi, Bangalore and Mumbai airports. Choosing it right The retail price points of the brand range from Rs. 300/metre to Rs. 3,000/metre with an average price point of Rs.600 per meter. And while detailing the segment of potential consumers, Arora feels that the brand?s appeal floats from the middle
class to the rich and crossing the higher middle class en route. Arora does feel that the creation of a new Indian home and the endeavor to improve it, takes place primarily for the 30-35 year age group and thus, within the territory of the target audience, this set is promisingly powered. Also, basing a valid presumption on the way households, particularly in India function, D?Décor estimates the worth of the female consumer at a notch higher than her male counterpart. This is clearly communicated across the brand?s campaigns. VidyadharWabgaonkar, Senior Vice President of Strategic Planning at DraftUCB +Ulka, comments comprehensively on D?Décor?s existing milestones when he says, “B2C effort calls for an integrated, synergised, simultaneously running, multi-thread effort that is far more complex than commissioning a campaign. And, an eye catching campaign is but a small beginning.” He sees several elements which can contribute to charting out the success of a brand existing in the home décor and furnishing industry. “Seasonal flow of new designs, tracking new trends in décor, strong presence in modern retail, a well working influencer (architects and interior decorators) loyalty and support program, strong service network for products such as wall-papers, promotion through sample flats in new housing schemes, advertorials in magazines, ensuring new news that truly solves consumer issues (e.g. stain resistance, mites resistance etc.) are all a part of marketing in this category.” Hence, at levels more than one, it could be safe to say that cementing position and proposition and maintaining relevance to an ever evolving social fabric is what could ensure optimism ensuing for the brand. With a target which sees sales being doubled, retail points increasing from the current figure of 600 to a thousand, and the accessibility barometer crossing the 100 city mark, branding efforts for D Décor will only need to be refined and strengthened.
doc_145055041.docx