Brands need to aggressively promote transparency: Bhaskar Bhat, Tata Sons

Studies say senior citizens are far more profitable and loyal customers than Generation Z and millennials, and business leaders must keep this in mind, said Tata Sons Director Bhaskar Bhat while delivering the opening keynote at e4m’s first South edition of ‘Pride of India Brands’ in Bangalore on Friday.

“Since 1982 Asiad, when TV became popular in India, everything has changed. Earlier, we used to follow other countries. Today, we are setting standards. In the next 40 years, India will become a legend,” Bhat said, setting the tone of the award ceremony.

On new frontiers of marketing

Speaking about emerging frontiers of marketing, Bhat said, understanding India’s demographic dividend was crucial for business growth. He urged home-grown brand leaders to identify the new hotspots for growth across the country and then establish deeper connections with consumers.

Bhat described the process of identifying hotspots in detail through decadal graphs on night-time illumination data, open spaces, built-up spaces, road network, service network, income per sq kilometre and travel data for north Bihar. The graphs showed how the area has transformed completely in the last four decades due to all-around growth.

Bhat further explained, “Earlier, the only metric to understand the new growth centre was population data and schools, temples etc. Today you can go beyond that. You have to connect with digital natives. That's why we launched Tata Neu through which consumers of all ages can navigate to the brands of their choice.”

He also presented behaviour analysis of two generations-Gen Z and Millennials-and showcased how they were distinct in their thought process and have different life goals which were important to understand from a business point of view.

“Unlike Millennials, Gen Z (born after 1997), plans for the future mindfully. For them, family is central to their lives, very concerned about mental health and discussing it. The generation uses over 20 per cent less alcohol than millennials, 20 per cent of them don’t drink at all. For them, good lifestyle, climate change, travels, and authentic experiences all are important,” Bhat pointed out.

On building stronger bonds

Bhat elaborated on how small businesses and home-grown brands can scale up through powerful branding.

“How you make your customers feel is very crucial. You have to fulfil their unrealised desires. More and more young people are seeking authenticity, trust and integrity of brands,” Bhat noted.

When we surveyed young consumers to understand the criterion on which they make a decision to buy certain brands, watches and airlines, the outcome was interesting. While most consumers mentioned ‘recommendation by someone I trust’, ‘interaction with sales staff’ etc, many relied on online comparison, company websites and many new aspects which were not clear before, said Bhat, adding that businesses must use such insights to understand the market better.

Giving an example of Unilever, Bhat said the FMCG major was working on an AI tool to deliver personalized beauty products to individuals, globally just by looking at Insta pictures.

He also noted how Decathlon disrupted every other sports brand and created a space for itself using meaningful discourses and offering great experiences to customers.

Bhat spoke about how Titan’s Bangalore office was witnessing 100 per cent attendance ever since the lockdown was lifted, thanks to green initiatives and blurred boundaries.

Another example he presented was how Tech Mahindra in partnership with Yellow.ai sought to offer conversational experience in the B2B segment.

Trust and transparency

Stressing on transparency, Bhat said, “With the explosion of access to information, when data is free in India, brands have to become more transparent and aggressively promote transparency by allowing consumers to have a peek view. That leads to trust and thus inclination for consumers to adopt that brand.”

Bhat appreciated how a Jaipur-based skincare startup- Minimalist- has adopted a radical approach to transparency and Cadbury is supporting child education.

Bhat lauded many brands for going the extra mile to build trust. He spoke about food upcycling start-up Koa in Ghana which works to reduce the on-farm food waste around cocoa fruit, generating additional income for farmers.

He also mentioned Malabar Jewellery brand’s latest print ad that doesn't showcase a single piece of jewellery or brand ambassadors. Rather it uses photos of four commoners who talk about the brand and its fair prices.

Bhat ended his session with a small quiz and asked what was common among actors Rajinikanth, Amitabh Bachchan, and industrialists Ratan Tata and Anand Mahindra?

Answering the question, Bhat said: “They lived in both millennia and remained successful at both. They are completely opposite of GenZ or millennials. Yet, they have millions of followers and admirers. They don't want new products, ads or offers every day. They remain loyal to all the brands they use.”

"The silver lining is - senior citizens are more profitable customers than Gen Z and millennials,” Bhat said, giving marketers and brands some food for thought.