UnHate the campaign, atleast for the Consumer’s sake!

 

There is so much brouhaha about the most recent campaign of United Colors of Benetton, the marquee fashion brand from Europe’s fashion capital, Italy. Benetton’s in-house design agency Fabrica has created the recent campaign among many others over the years, particularly the one which showed a blood smeared baby still attached to its umbilical cord which was also a much talked about one. Benetton also had campaigns which showed a nun kissing a priest, three hearts declaring “white, yellow and black” and so on. Over the years, Fabrica has attracted global talent to work in its think tank and has been a darling of the creative minds. The recent Unhate website has this to say;

What does UNHATE mean? UN-hate. Stop hating, if you were hating. Unhate is a message that invites us to consider that hate and love are not as far away from each other as we think. Actually, the two opposing sentiments are often in a delicate and unstable balance. Our campaign promotes a shift in the balance: don’t hate, Unhate.

The UNHATE Foundation, desired and founded by the Benetton Group, seeks to contribute to the creation of a new culture of tolerance, to combat hatred, building on Benetton’s underpinning values. It is another important step in the group’s social responsibility strategy: not a cosmetic exercise, but a contribution that will have a real impact on the international community, especially through the vehicle of communication, which can reach social players in different areas.

The Foundation will organise initiatives involving different stakeholders, from the new generations to the institutions, international organisations and NGOs, through to civil society.

The Foundation also aims to be a think tank, attracting personalities and talents from the fields of culture, economy, law and politics, and people who have gone from simple citizens to leaders of movements, distinguishing themselves through their ideas and actions against the causes and effects of hatred.

UnHate Video campaign from benetton.com

The Media frenzy, as always makes it more sensational that it seems and there is enough outrage in the internet world and the real world about this. Industry leaders from the advertising world (in India) have commented on the afaqs! website, which is as follows;

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Piyush Pandey
Executive chairperson and national creative director, Ogilvy India

I think the entire campaign is sensational and unnecessary. It is certainly edgy, but being edgy does not mean that you cross limits. A lot of people will say that it is a fantastic way of doing things, but I feel there are other fantastic ways of doing things.

K V Sridhar
National creative director, Leo Burnett

The participants of Bigg Boss are supposed to behave in a certain way. Similarly, Benetton as a brand is supposed to behave in a particular way, too. If it does not behave in that manner, then it would be unique.

One other campaign of the brand showed a blood-smeared baby still attached to its umbilical cord. As a brand, it has done several such campaigns in the past. But, this time, I feel that it has done it intelligently. The message that nations/religions should not hate each other has been conveyed effectively through the best form of expression of adore - a kiss. Leaders are representatives of the masses. If they would have shown Barrack Obama hugging Hu Jintao, then it would not have been as interesting. But, this one works and is brilliantly executed.

Arun Iyer
National creative director, Lowe Lintas

It is a controversial ad. But, that is what it is supposed to do -- create controversy. Fifty per cent of the people will feel that it is in bad taste, while the other 50 per cent will find it interesting. However, despite the like or dislike, it will induce talk-ability. I think visually, it is supposed to be debatable, but at a thought level, it is not at all a debate.

The fact that this campaign has been successful in creating a debate is by itself a success of the brand and its objective. However, it is also trying to push too far.

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Well, the big question is, Does this campaign really solve the purpose of Love, or rather, Unhate? Oh, am not sure. Does this campaign appeal to the younger generation who is the intended customer base for "Brand Benetton”? Absolutely. Over the years, Benetton has seen stiff competition from Spanish fashion giant Zara (which apparently changes the design/range at its stores every few weeks) and several other brands such as Mango, Esprit and many other local brands in several markets (Benetton has over 6,000 stores across 120 countries and clocked over 2 Billion Euros in Sales in the year 2010). In India, the brand has done well in itself, thanks to its aggressive growth strategy and plans since its turnaround in 2005 under the new leadership led by its Indian division. The campaign has just gone viral and the company plans to spend over half of its less than advertising budget of 10 Million Euros  in digital media and the balance in traditional media. Like many I too wonder if this campaign will go public in the US, China, Korea and the Middle-east – the leaders of whose countries are mentioned in the said campaign. For obvious reasons, I am sure the campaign will not feature in India as well and they dare not even dream of having Indian Politicians (sic).

All said and done, it is indeed a wonderful attention-seeking opportunity for Benetton, although it is anybody’s guess if such (unwanted) publicity would necessarily translate into Sales!

Customer Service - by Trial & Error!

My only claim to understanding or appreciating an Apple product is my iPod Nano, which my buddy had gifted me 6 years ago. A 4 GB nano, I didn't know actually how to even switch it off when I first laid my hands on it. Since 2005, it has been one of my favourite companions, accompanying me in my life's journey. The voice clarity on the iPod was one of the best I've ever heard in my life - even the Nakamichi headphones that were kept for sampling CDs at Musicworld (where I started by professional career a decade ago) weren't as great in terms of audio quality and clarity as the original apple (white-colored) ear phones. Over the years, I have added so many other devices to my kitty for listening music but none like the iPod nano. So, when it stopped working abruptly, I was worried. I logged online and tried some trouble-shooting methods although none of them came in handy. And finally I heeded the advice of one such post - which was to visit the nearest Apple store! Which I did. Only to be disappointed by the approach of the staff out there! The discussion ended in less than two minutes - yes, just two minutes. The staff heard my problem, connected it in his Mac and came back to me and said that it was working perfectly well. And he glanced as though I should just move on with my old monumental piece for a new swanky one... Well, he didn't say it out loud, but I could make it.

iPod Nano

I walked off in disgust but came back to the store again, this time to propose an alternative - switch off and switch on in "Disk utility mode" which he attempted. And said that the scroller wasn't working and the only alternative would be to replace it which would cost about a hundred dollars! And again, he was referring indirectly that I give up! He also suggested to erase all the data, format the device and then I try at home, which wasn't the best route possible. But I agreed since I had all the music backed-up so I would be fine as long as the device was working well again. When I tried connecting the iPod later on my laptop, it wasn't working either. So, his "customer service" methods were just by trial and error. Try this. Oh, if that doesn't work, then try that. And so on. A day later, I installed some Microsoft updates on my system and... pronto... the iPod was working!! Strange as it may sound, the issue was not with the device at all - just that some new updates were required for it to work. And all this from a so called "Apple Support Team member". Ufff. Thank God, Steve is no more to see all this, I mumbled.

(Suggested Reading: Retail Staffing)

So, why this kind of an approach to "Customer Service"? I ain't an Apple basher nor am I a die-hard fan. I love electronic devices as they make our life easy. And they make it simpler to use them for the purposes they were intended and invented for. Unlike many other electronic products / brands, Apple doesn't have a designated service center. The Retail store also doubles up as a service center where users can bring their devices for any kind of trouble-shooting, including migration from MS to Mac.While the technically-abled are behind the scenes fiddling with the devices, the young boys ( and girls) who attend to customers are not as strong in their technical skills as are expected to be. I see this issue is common across various other retail formats too. 

Apple Imagine Store, UB City, Bangalore

While I agree that the staff attitude and behavior in this case may not be intended to be the way it was, it does send wrong signals to present and potential customers. And this was the second time with me. In an earlier instance, when we had walked into the same store, the staff failed to provide us a proper demo of the iPhone 4, which led us to change our mind to another store and eventually, Samsung (Galaxy S4) benefited, I would say! The staff were already profiling their customers (mentally) even before knowing the intended reason for their visit. Too bad. This is common across many other premium and luxury brands. For example, If a customer asks for the price of a product at an upmarket watch retail store, then the staff begin to think that he/she is merely there to appreciate the product and not necessarily buy them. At a premium apparel store in Bangalore which houses many brands such as Versace, Armani, Boss and so on, the sales manager doesn't walk up and greet customers whom she thinks may have come window-shopping. The higher the value of the product, the lower is the importance given to visitors and potential customers. 

(Suggested Reading: Luxury Retailing in India)

Retail Staff, who start their careers in the front-end at the beginning of their careers slowly make headway to higher roles and positions and during the course of this journey, forget the basics, at times. Retail Training Managers and the Business Management also fail to train their staff to keep them competent all the time. Unfortunately, Customer Service has become, as I mentioned earlier, by Trial and Error many times! And all this in the country which chants "Athithi Devo Bhava", a sanskrit slogan which means to say guests should be treated like god. Pity the Guests. Amen! 

(Suggested Reading: Customer Service)

Selling, Upselling and Unselling

Despite my request thrice, the staff of India’s first class airline forgot to sell me sandwiches and muffin, my first and most important meal of the day – Breakfast, while I was flying from Bangalore to Delhi (on work) last week. My first request was placed around 25 minutes after take-off, and I waved at her two times thereafter, but to my dismay and surprise, she seemed to have forgotten till the flight landed… And it was a 2.5 hour flight! Was it pure negligence or arrogance or forgetfulness – I don’t know, but for sure, a lost opportunity. What I may, if allowed can call “unselling”. In our (Retail) business, a lost consumption opportunity can never be recovered. After all, a breakfast meal (to the same person) cannot be served for lunch or dinner! On a quick calculation, I was stunned to note the business opportunity of selling on board – if, for example, an airline flies 100 flights a day, with an average of 100 pax per flight, and a 25% conversion @ Rs. 120 per person, it amounts to Rs. 3 lakhs per day or Rs. 100 crore per annum in topline! Well – that’s the potential opportunity and it all depends on how best the airline staff are able to sell. However, what the airline then needs are not air hosts and hostesses but air- salesmen and saleswomen! but why not? The airlines haven’t yet spotted this as an important opportunity (I Guess so, lest she would have sold my muffin!) and I am sure this is one market that F&B players cannot and shouldn’t miss. With minimum dwell time at airports (time spent between security checks and boarding), and with a healthy >25% conversion of pax at F&B outlets across Indian airport terminals, I wonder why this opportunity cannot be real. It is, indeed.

(Suggested Reading: Travel Retail and Luxury Retail at Airports)

Over the last weekend, India’s most consumed newspaper Times of India carried 20-30 page supplements across all major cities, most of which were advertisements by Retailers and Brands wooing shoppers to choose their respective locations and products while shopping this Diwali. Prominent advertisers included large retailers such as The Future Group (Pantaloons, Big Bazaar, Food Bazaar, Central Malls, EZone, Home Town), Shoppers Stop, Lifestyle, Croma, Reliance Retail, etc. What was interesting was most Retailers were promoting “bill value” based promotions – a clear tactic to entice shoppers to spend a little extra – what we popularly call as “Upselling”. This could be on and off the ground – while advertisements promote the idea, it is the sales’ staff who finally “close the sale’ and hence are the messengers by the Retailers to convince shoppers to spend more. Unsurprisingly, sales grew between 25% – 45% across various Retail stores. Electronics and Furniture took centre stage this time (specifically for promotions) while apparel and accessories including Jewellery, Watches, etc. were assumed to be sure-shot purchases for the festive season.

(Suggested Reading: Consumer Driven)

Upselling is an art, taught and trained to Retail staff right from the time they join in their roles and all through their career. It’s a bit like negotiation, pushing customers to buy more. While this is expected of every staff towards every customer who walks into the store, it is emphasized especially during festive times to increase the bill values – the amount spent by a customer on his / her shopping bill.

 

Gift Vouchers

While “gifts” of a certain perceived value are given away if the customer achieves a certain amount of bill, other tactics have also been used over time – gift vouchers being the most common one. The advantage with gift vouchers is that the shopper has to return back to the store once again and encash it or utilize the voucher for part-payment and that too, within a certain time frame. The average amount spent over and above the value of Gift Vouchers ranges between 20-35% and goes up to 70% in some cases. They are also transferable, and can hence be passed on to loved ones. This festive season, Reliance Trends is providing coupons worth Rs. 3,000 for a shopping value of the same amount.

(Suggested Reading: Gift Vouchers)

By-Products

This is a smart tactic used, especially in the Electronics business. While a battery charger and headphones are in-built with the original packaging (in most cases), the retailer or the brand could throw in an additional accessory, say a screen guard or a Bluetooth ™ headset along with a mobile phone! Instead of providing a cheap one, Samsung upsells with a Samsung Bluetooth™ headset for just Rs. 500 (MRP Rs. 899) at select retail stores including at Ezone and 50% off on other accessories for its Galaxy Tablet. Great way to engage shoppers to spend more!

Buy One Get One

An age-old tactic to upsell, this is the most common (yet boring) phenomenon one can find. Giordano offers another wrist watch when you buy one! Works well for couples who want a new one for themselves but the designs may be limited. However, it also works as a worthy gift. Last year, I bought an Esprit ladies watch as a gift and I got myself a fabric-strap sporty watch from Puma which I use while cycling. Needless to say, one can always find utilities how to use the free product.

Scratch and win!

Some Retailers offer a promotion scheme where every shopper who attains a certain bill value gets to scratch a card (or crush a fortune cookie) and wins a gift as mentioned in it. The gifts may range from gift vouchers to small home utensils to accessories or even a motor bike or a car or a house! The excitement in this case is pretty high, with each shopper hoping to win something big. Atleast, there is no disappointment that one didn’t get the big fish! SPAR, world’s largest F&B Retailer is offering a similar proposition to enable more shoppers to buy more!

(Suggested Reading: National Shopping Day!)

Shop and win!

Central Malls, India’s largest Mall chain is offering a Toyota Etios (car) and a Harley Davidson (Motorbike) to be won when you shop and participate in a lucky draw! By far, the most exciting, tried-and-tested promotion globally to attract shoppers. An average middle class shopper, irrespective of whether he / she owns a car or a bike (no matter how many) wouldn’t decline an offer to own one more, especially if it is free of cost. The only catch – the winner has to pay road taxes and insurance, which may cost a few thousands. However, this sort of promotion, a raffle to say is among the ones that excite shoppers the most. Airports worldwide, including Singapore, Dubai, Heathrow, Frankfurt etc., offer luxury and high-end cars to be won for a few bucks that is spent at their airport shops. No matter, what – people buy! And buy more, and in this case, upselling just works.

(Also Read: Central Realigns the City!)

Diwali is gone, but the offers are still on! Festivals would come and go buy upselling continues. Retailers must spend a lot of time encouraging their staff to upsell, rather to talk to potential customers, to begin with. These days, many shop assistants feel they are paid to stand (there are well-dressed mannequins already) and usually talk with each other but move to a corner when a shopper walks by. Store Managers would do well for themselves if they lead by example. I have done so, many years back encouraging shoppers to buy bread when they come to buy their morning milk, to try a new range of ketchup when they are looking for noodles at Foodworld.

It’s possible. Just needs a bit of push. By each of us! Happy Selling… errr… Upselling…