Marketing in the financial services sector is tough currently, but Ajay believes that ABFSG can keep its ship steady and on the move.
Ajay Kakar has a rich background in financial services as Head-Branding of Reliance Capital and also in PR as he was also Country Head of Oglivy Public Relation (apart from simultaneously being the head of their financial services group) before joining the Aditya Birla Group’s Financial Services arm. In this interaction with mona mehta, he talks about his strategies to ensure better penetration for the company’s products in a cluttered market:
How is the marketing of ABFSG products taking off at a time when the Indian economy is facing one of its toughest times; be it rising inflation, falling Sensex, impact of the sovereign debt crisis in Europe and above all customer confidence?
Aditya Birla Financial Services Group (ABFSG) is a virtual brand, representing all financial services businesses of the Aditya Birla Group. At ABFSG we are committed to meeting all the felt and unfelt needs of our target customers. And today, as a significant non-bank, our 7 companies help us address nearly all such needs of mass India, short of core banking. We are fortunate to be in a category (money) that is the base need of every citizen across the globe. And therefore, we look at India’s underpenetrated financial services industry as an exciting and limitless opportunity. Every economy goes through seemingly uncertain times, but when you see the larger opportunity, such times are just minor dots in the life of an industry. Also, do remember that in moment of doubt, you need a doctor the most. And so it is with our category. We continue to reach out to our target customers with solutions that best meet their need. Towards this end, we are blessed to have a pedigree that represents one of India’s most trusted brand names - “Aditya Birla”.
How is the integration of your various financial services benefitting ABFSG in generating targeted revenues? What is the strategic roadmap ahead?
While we are a broad based financial services player, we have chosen to adopt an integrated approach towards our target customers. And we believe that this unique approach is beneficial to all our key stakeholders, be it our employees, customers or shareholders. To deliver on this approach, we have set up a unique structure with 4 key functions (HR, Risk & Compliance, IT & Operations and Marketing) driven by a cross ABFSG perspective. Our ambition is to come across as One virtual brand representing many businesses – a brand that speaks like one, looks like one and acts like one. This approach provides simplicity and convenience for customers. For our employees, we provide a world of career opportunities across businesses. And our shareholders benefit, as we offer solutions to customers across their life cycle. This approach helps us optimise our customer acquisition costs while maximising cost efficiencies with an integrated approach to our operations and back end costs.
What, according to you, is the most effective marketing approach for financial services specific to India today? How is ABFSG leveraging that tool?
With a heavily underpenetrated market, we focus not only on maximising our market share, but also on expanding the market. Just as an example, after more than 47 years of existence, mutual funds only enjoy a 5% penetration. And life insurance has an under-15% penetration. Today, we enjoy the trust of over 5.5 million customers. But while expanding our customer base, our energies are also focused on maximising the life time value of our existing customers. We are in a category that sells “trust”. To that extent we are unique from most categories that you can touch, feel, sample or taste. Trust is not built over night. And therefore we need to move beyond an “IPO/NFO” approach of need based advertising i.e. when we need to advertise. We need to engage our target customer throughout his life cycle and be there for him more so in his moments of need. At ABFSG, therefore, we track the customer through his life cycle with our category and brand. And we are always seeking newer ways and opportunity to engage with him. Therefore, we do not restrict our marketing spends to mass media campaigns alone, but also on being a part of the customer’s world 365 days of the year by capitalising on every customer touch point.
Ajay Kakar has a rich background in financial services as Head-Branding of Reliance Capital and also in PR as he was also Country Head of Oglivy Public Relation (apart from simultaneously being the head of their financial services group) before joining the Aditya Birla Group’s Financial Services arm. In this interaction with mona mehta, he talks about his strategies to ensure better penetration for the company’s products in a cluttered market:
How is the marketing of ABFSG products taking off at a time when the Indian economy is facing one of its toughest times; be it rising inflation, falling Sensex, impact of the sovereign debt crisis in Europe and above all customer confidence?
Aditya Birla Financial Services Group (ABFSG) is a virtual brand, representing all financial services businesses of the Aditya Birla Group. At ABFSG we are committed to meeting all the felt and unfelt needs of our target customers. And today, as a significant non-bank, our 7 companies help us address nearly all such needs of mass India, short of core banking. We are fortunate to be in a category (money) that is the base need of every citizen across the globe. And therefore, we look at India’s underpenetrated financial services industry as an exciting and limitless opportunity. Every economy goes through seemingly uncertain times, but when you see the larger opportunity, such times are just minor dots in the life of an industry. Also, do remember that in moment of doubt, you need a doctor the most. And so it is with our category. We continue to reach out to our target customers with solutions that best meet their need. Towards this end, we are blessed to have a pedigree that represents one of India’s most trusted brand names - “Aditya Birla”.
How is the integration of your various financial services benefitting ABFSG in generating targeted revenues? What is the strategic roadmap ahead?
While we are a broad based financial services player, we have chosen to adopt an integrated approach towards our target customers. And we believe that this unique approach is beneficial to all our key stakeholders, be it our employees, customers or shareholders. To deliver on this approach, we have set up a unique structure with 4 key functions (HR, Risk & Compliance, IT & Operations and Marketing) driven by a cross ABFSG perspective. Our ambition is to come across as One virtual brand representing many businesses – a brand that speaks like one, looks like one and acts like one. This approach provides simplicity and convenience for customers. For our employees, we provide a world of career opportunities across businesses. And our shareholders benefit, as we offer solutions to customers across their life cycle. This approach helps us optimise our customer acquisition costs while maximising cost efficiencies with an integrated approach to our operations and back end costs.
What, according to you, is the most effective marketing approach for financial services specific to India today? How is ABFSG leveraging that tool?
With a heavily underpenetrated market, we focus not only on maximising our market share, but also on expanding the market. Just as an example, after more than 47 years of existence, mutual funds only enjoy a 5% penetration. And life insurance has an under-15% penetration. Today, we enjoy the trust of over 5.5 million customers. But while expanding our customer base, our energies are also focused on maximising the life time value of our existing customers. We are in a category that sells “trust”. To that extent we are unique from most categories that you can touch, feel, sample or taste. Trust is not built over night. And therefore we need to move beyond an “IPO/NFO” approach of need based advertising i.e. when we need to advertise. We need to engage our target customer throughout his life cycle and be there for him more so in his moments of need. At ABFSG, therefore, we track the customer through his life cycle with our category and brand. And we are always seeking newer ways and opportunity to engage with him. Therefore, we do not restrict our marketing spends to mass media campaigns alone, but also on being a part of the customer’s world 365 days of the year by capitalising on every customer touch point.
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Source : IIPM Editorial, 2011.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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