215111045 Santhosh Festival Marketing

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Festival Marketing

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LK Gupta, Chief Marketing Officer, LG Electronics India

Consumers still like to buy during the festive season for various reasons to celebrate, and

because some consider this to be auspicious. The spirit of festivals is the same across the

country. Through innovative festive campaigns, companies can move closer to the Indian

consumers and can maximise brand pull.

If there is a time during the year where the companies are in celebrative mood its

during the festival season and they leave no stone unturned to make sure they captivate the

festive mood of the consumers. Festivals likeDiwali, Pongal in Tamil Nadu, Onam in Kerala,

Durga Puja in West Bengal etc are a time where sales hit the peak, right from products like

dresses to jewelleries to automobiles and to even houses. This is a time where companies who

can cleverly utilize the situation to gain market share and boost revenues.

A Festival is a day or period of time set aside for feasting and celebration. The word

'Fest' has been derived from the Middle English, from Middle French word 'Festivus', from

the Latin word 'Festivus'. The usage of the term 'Festival' in old times was different from the

prevalent definition. From the 14th century this term had been used as adjective which meant

'To celebrate a Church Holiday'. It was in 1589, that this term was first recorded as a noun.

While some festivals are celebrated worldwide others are restricted to certain regions of theworld. Historically speaking, festivals have been known as Feasts; in fact 'Feast' was the

parlance for people of the ancient era. The reason festival being referred as 'feasts' is chiefly

due to the practice of serving meals on such occasions. In modern times, the practice is still

widespread but not necessarily, as is evident in the case of 'Modern Festivals' like a Film

Festival. Some festivals are celebrated as joyful occasions while others are meant only to be

observed, minus the fanfare. But for the larger populace 'Festival' is a time to celebrate, meet

their beloved ones', take time off, worship god, take vows, and adhere to traditional practices

and so on. All the traditional Festivals are observed on a certain period of time, however there

are festivals that are 'Date Bound', i.e. they are observed on a particular date of a year. For

example Christmas is always celebrated on 24th December.

At the same time some festivals aren't bounded by dates, they are observed according to

'Natural Clock', i.e. based on seasonal changes like summer, spring, winter etc. Because they

depend on nature they do not rely on dates to observe a certain festival. For example,Holi, is

celebrated during February end or early March, this period is known as Phalgun Purnima, in

Hindi language. Another example of varied occurrence of a festival is the 'Chinese New


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Year; this is actually beneficial for them as they get to celebrate their own 'Traditional New

Year' and the 'Modern New Year' which is universally celebrated on the same day. The

reason for celebrating festivals on a certain day or specific period of time is based on

traditions and cultural practices whose origins are as varied as the festivals themselves.Mostly, festivals are observed as per the calendars of religions, these calendars are based on

seasons and do not adhere to the modern calendar which we use today. Thus we have

Christian Calendar, Hindu calendar, Sikh Calendar, Islamic Calendar etc. Due to these

calendar variations festivals are not uniform in their observations and occurrence. Festivals

also have varied terminology depending on the language and country, it is being observed.

Like, in India a Festival is also known as 'Mela'. Similarly, a festival acquires a broad

meaning in the form of terms like 'Fair', 'Carnival', 'Festivity', 'Fiesta', 'Fete' 'Gala' etc.

Types of Festival

Festivals are celebrated throughout the world in different manner and for different

reasons. Some are ancient and some are modern, some are widespread others are not.

Festivals can be therefore divide into the below mentioned categories whose focus is widely

on music, dance, drama and other art-oriented activities, usually set in pretty, interesting

locations.

Religious Festivals - Festival which have a religious relevance are known as Religious

Festivals. These have very important religious significance, wherever they are held. They are

observed as per the recurring cycles in a calendar year. Of all the festivals in the world,

Religious Festivals number the most and are observed with great worship and devotion. In

fact, origin of Festivals itself is based on ancient practices of Religious Festivals. Religious

Festivals are not necessarily meant to celebrate only, they are also meant to show respect like

Buddha Poornima, mourn certain events like Muharram etc. Religious Festivals are marked

by certain events like birth, death, conquest, defeat and other aspects of pious figures. Based

on the religion with which the festivals are associated, Religious Festivals can be categorised

as:

Christian Religious Festivals - Epiphany, Christmas Eve, Halloween. Hindu Religious Festivals - Pongal,Diwali, Raksha Bandhan. Islamic Religious Festivals - Idu'l Fitr, Muharram, Hazrat Ali's Birthday. Sikh Religious Festivals - Guru Gobind Singh Jayanti, Guru Nanak Jayanti, Guru

Tegh


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Bahadur's Martyrdom.Film Festival - A Festival which is organised to screen movies in one or more movie theatres

or screening venues is known as a Film Festival. Film Festivals are usually held in a single

locality to avoid any chaos. The festivals can be specifically themed around a particular film-

maker, a genre or a subject. They may include old and or latest films. Apart from screening

movies, these festivals also present awards to outstanding pieces of work in various

categories. Other activities may include exhibitions, workshops and other related activities.

High profiled Film Festivals are attended by hundreds of celebrities, people and attended by

the media including the infamous, paparazzi. Therefore the movie makers see this as an

avenue for publicity of their films. There are a number of Film Festivals held around the

world; some are grand while some are ordinary. There are certain Film Festivals which are

very 'Low Key Affair', as they are only locally known and not necessarily, held on annual

basis. Film-makers have to pay an entry fee to screen their movies in most of the Film

festivals; this is a norm in Large Film Festivals. While in small film festivals, a film-maker

isn't required to pay an entry fee, some of these festivals are Stony Brook Film Festival,

Sicilian Film Festival, and Rotterdam Film Festival etc.

Music Festivals - Festivals whose main focus of activity is music are known as Music

Festivals. The festivals may be cantered around a theme like a particular musical genre, artist

etc. These festivals can be annual or occasional. Mostly, held outdoors, they attract a large

number of people and are amongst the most bash parties in the world. The main attractions of

Music Festivals are the Stage performances which drive people crazy, if they are performed

by their favourite musicians. These are also training ground for new comers to get some

'Hands-On- Experience'. Other activities like games, comedy acts, fireworks, family activities

and other attractions also form part of the Music Festivals. Some of the music festivals form a

part of the larger festival or can be intermixed with some other type of festival. Based on the

type of music involved they may be known as 'Rock Festivals', 'Metal Festivals' etc. Another

type of Music Festival is those which are formal in nature, in the sense that they are educative

in nature. These are organised on a small scale by local communities on a regional or national

basis. The emphasis of these is to boost the confidence of amateur musicians, sometimes in

an environment of competition. These young musicians may receive a certificate or a trophy.

Colleges may hold Music Festivals to bring forth the untapped talent, occasionally or

annually.


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Arts Festival - A Festival whose main focus is to present visual arts in all its forms is known

as Arts Festival. Though the mainstay of these is visual arts, it may present other lesser

associated arts as well. Arts Festivals are involved in works related to ceramics, drawing,

painting, sculpture, printmaking, design, crafts, architecture and to some extent film-making,photography, video etc. as well. The main purpose of an Arts Festival is to showcase new

talent, keep the tradition alive and lay emphasis on the disappearing visual arts. In a broader

sense, various 'Arts Festivals' are also organised by Colleges and Universities but on a

smaller scale. There are some Arts Festival which is art-world venues for promoting artists

and sales of contemporary art. These are referred as 'Commercial Arts Festival'. These are

essentially held by art dealers to sell their collection along with other linked commercial

aspects. The 'Non-Commercial Arts Festivals' are organised by internationally recognized

curators. They invite artists to participate in their festival.

Wine Festivals - Festivals which are organised to celebrate 'Viticulture', i.e. the cultivation of

grapes and grape vines. Wine Festivals are common in wine producing regions, Italy, France,

Spain, the United States and Argentina. They are harvest festivals as they are celebrated after

the harvest of the grapes. The origin of wine festivals can be traced back to the Greek

celebrations for their wine god Dionysos. Apart from Wine Tasting, dance, performances,

fireworks, arts and crafts display, food corners and music enrich the environment.

Comedy Festival - A Festival which is organised to celebrate comedy through various

activities is known as a Comedy Festival. These activities are based around various comedy

themes and genres. These are presented by comedy performers through many shows which

include stand up comics, sketch troupes, variety performers etc. A variety of such festivals

are held in different parts of the world. The purpose of these is to provide comic relief to the

world which is faced with so many responsibilities on day to day basis. Some of the Comedy

Festivals may form a part of the larger celebration like Edinburgh Fringe Festival held inScotland, forms a part of the larger Edinburgh Festival.

Food Festivals - Festivals which use and produce food for sale and marketing are known as

Food Festivals. Food is the main theme of these festivals and at times certain category of

food is the central theme. These have their origins to Autumnal Equinox and the Honouring

of Earth Gods. While some of these festivals are held annually, some are held occasionally.

Some food festivals are majorly focused on certain foods, like the National Peanut Festival of

U.S. and Ribfest (U.S. & Canada). Occasional food festivals are associated with certain

events or are a part of larger celebration like New Year and can be based on foreign countries


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dishes like Thai food etc. Food Festivals are occasion for thanking god and celebration of the

harvest. Food Festivals also host events like live music, family oriented pavilions, nightly

film performances etc.

Folk Festivals - Festivals which celebrate traditional folk crafts and folk music are known as

Folk Festivals. Folk Festivals highlight ethnic way of living, not only through dance and

crafts but even through literature, tableau, stories, dramatisation etc. But mostly it is the

dance and music which are the main highlights of these festivals. So the atmosphere is filled

with skilled display of artisans, dancers, instrumentalists, singers and storytellers. Folk

Festivals can be of regional, national level and international level. It is an important occasion

for all people to certain community to show their talent and win hearts. Folk Festivals are

broadly referred as 'Cultural Festivals' as they also have same purpose and they also highlight

various cultures through various art forms, mostly performing ones'.

Literary Festivals - Festivals which are involved in literary activities like presentations and

readings by authors are known as Literary Festivals. The primary objective of these festivals

is to promote the authors' books, as well as love of literature and writing. They are also

known as 'Book Festivals' or 'Writers' Festival'. Literary festivals are attended by writers and

readers in a selected venue, mostly on annual basis. Other activities may include book

exhibition, writers' conferences, autographing books, cultural and political talks, debates etc.

Such festivals may spread over a period of several days.

Science Festivals - Science Festivals are those which are based on Science related activities,

like exhibitions, lectures, live demonstrations, workshops etc. Apart from these activities,

Science Festivals may indulge in plays, readings and music with Science as their theme.

These can be annual or occasional and can span over a week or a just a day. The main

purpose of these festivals is to provide a scientific outlook to the masses as there many facets

of science about which the society is ignorant. Sometimes they are also known as 'Science

Fairs'. These tend to showcase the talent of science students and may result in sponsorship of

their project.


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Significance of a Festival

Showcase of Talent and Customs - Since the origin of festivals lie in our ancient culture and

tradition, they are highlighted with full fanfare. Festivals offer us a picture of how the society

functioned and celebrated. Whether festivals are religious or musical they provide the young

and old, an opportunity to absorb and experience another culture. New generation is able to

show their talents and gain good amount of experience. Every culture has something which

we can learn and utilise in our daily lives. Like, Baisakhi, gives us a lesson of handwork and

its fruitful results, as it is a harvest festival. All in all festivals keeps all the citizens in touch

with their culture and religion. When customs and traditions are exposed to the public it helps

them in keeping touch with their culture and religion. Though people may forget their history

but these festivals give them some idea.

Preservation of Traditional Practices and Customs - Festivals attract all types of cultures.

Each culture has its own customs and practices, which may have lost their significance in

modern times. While there are other practices which are based on superstitions and are used

to exploit, these should be ignored in all ways possible. But not all have lost their purpose,

Baskets are still Weaved and Honey is still collected in forests. These and numerous others

which are unique, need to be kept alive, not just for the sake of it but to remind us to live in

harmony with nature and not abuse it. Some traditional skills are still more effective and

cheaper than existing modern technologies, they need to used and more importantly

improvised for better efficiency. Some herbal medicines made by the tribes hold cure to

various incurable diseases. If these arts are short lived then we would be losing valuable

knowledge.

Strengthens Belief in God - Festivals have a lot of spiritual and religious significance. As

majority of festivals are based around divine beings like Jesus, Guru Nanak, Buddha, these

affect our thinking and actions in a positive manner. All the religions preach belief in god and

this is absolutely reflected in religious festivals. For people whose belief in god is

diminishing, these festivals act as boosters of faith. And those who believe in god, are

confident to know that what they believe in, is not an imagination.

Occasion for Socialization - Modern times are very busy times for majority of us. We all

have busy and hectic schedules which we religiously follow. In this milieu, we forget that we

have a life beyond our offices and businesses. Festivals are the essential breaks which help us

to come together. When we congregate in one place we socialise with whom we don't know


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and with whom we are acquainted. Festivals provides us the opportunity to listen to our

grandparents, fulfil wishes of our loved ones, meet those who miss us, catch some local

colour and meet locals.

Sense of Unity - Festivals are social events which are built on human cooperation.

Organising a festival requires a lot of man power and when this manpower gathers for a

common purpose, it develops teamwork which inadvertently unites people of different races,

castes, colour and creed. Such experiences provide us the lesson that there is great strength in

unity and even seemingly impossible tasks can be simplified with unity. When joy and

happiness is shared, it is doubled as it is universally shared and not restricted to a few.

Similarly International festivals favour brotherhood and in the process remove ethnic racism

in the world.

Spread of Knowledge - Festivals are unique occasions as each type of festival has its own

constituent norms and practices. When these are observed closely or remotely they give us an

insight into cultures, about which we were unaware or lacked proper knowledge. This insight

clears confused and clouded minds which have formed false assumptions about certain

practices of a culture. When festivals portray a skill or art, we not only get knowledge, we

also get inspired to further these techniques for the benefit of mankind.

Source of Entertainment - Most festivals are colourful and filled with lots of excitement.

There is an excitement all over in wearing new dresses and preparing a variety of dishes. This

atmosphere is not observed everyday and is conducive for diverting the mind from

monotonous tasks. As such they break the monotony of life. Dances, acts, performances,

displays, exhibitions, music and food become a source of entertainment and refresh our

minds. Whether old or young, everyone enjoys celebration even if one is a passive

participant. Happy faces and excitement brings forth the same in us. Festivals bring joy and

happiness in our lives. More importantly when we celebrate all festivals alike the message of

joy, happiness, brotherhood and humanity, is spread among one another.

Income Generation - With a plethora of activities, festivals are the busiest times. Festival

jobs are the most abundant and one can earn more than one can earn in one season alone.

Businessmen are busy keeping the demand at bay. Incomes soar high and the government

also benefits with tourists thronging to the venues of festivals. This revenue supports not only

just administration but families as well, their standard of life improves. When people are well


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endowed, they dont indulge in acts of crime like theft, murder, deceit etc. Thus the economic

aspect of festivals has a far reaching effect.

Inputs for Development When a community has sufficient funds, it can improve their

facilities and help in development of the community itself. Increase in revenue adds to sales

tax base with which the host city is able to provide more and better services. It also brings

new or increasing recreational opportunities to make the festival more interesting.

Development of the local population also favours the development of nearby communities

with increase in trade. Public facilities like electricity, water supply, public toilets, airport

infrastructure etc., undergo a face change which are signs of development not only for an

individual but for families, individuals and communities as well.

Worldwide Recognition Each country is unique and its uniqueness remains hidden if it is

not shown the 'Light of Recognition'. It is here that festivals play an essential role in

presenting their specific identity in front of the world. For, people it is an opportunity to

explore and discover a culture which is unique. Apart from the festival coming in the

limelight, the host country also gets its share of fame. Any small community can lie large on

a world map, if its worthy of appreciation. With the passage of time the repute of a festival

triples and is recognised as an excellent spot for tourism.1

Potential:

Proper marketing strategies around the factors mentioned as the significance of the

festivals will result in achieving high sales and profit margin. Mostly during festivals, the

strategy is very aggressive with lot of offers and mainly sales based, since this is the period

where companies make or break can be decided with respect to the companys sales. Below is

the sales figure of digital cameras during the festival season, October to December i.e. the 3rd

quarter 2010.

Digital Cameras:

The mood of celebration creates a good rush for the sales of digital cameras in the country.

India Digital Camera market records 69% YoY growth in sales (shipments) to touch an

all-time first of 8.45 lakh units in the October-December 2010 quarter

Continuous decline in ASVs leads to sharp rise in share of cameras sold with > 12 MP

resolution


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Overall India Digital Camera market sales expected to touch 41 lakh units in calendar 2011

The India digital camera market recorded a healthy growth in unit sales (shipments) of

69% year-on-year (October-December 2010 over October-December 2009). The overall

market touched 8,45,000 units for the first time in a single quarter in Q4 CY2010. The digital

single lens reflex (DSLR) camera category witnessed a significantly higher uptake,

registering a growth of 120% year-on-year. This has been revealed in CMR's India Quarterly

Digital Camera Market Review, 4Q 2010, April 2011 release.

Figure 1: India Digital Camera Sales, 1Q 2008 to 4Q 2010

Source: CMR, 2011

Table 1: India Digital Camera Sales (in thousands) by Form Factor, Oct-Dec 2010 *

* Source: CMRs India Quarterly Digital Camera Market Review, 4Q 2010, April 2011


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release

In the point-and-shoot (P&S) category, Sony was the market leader with market share

of 31% in terms of unit sales (shipments) during 4Q CY2010, followed by Nikon with 24%,

Kodak 13% and Canon 12%. In the digital single lens reflex (DSLR) category, Nikon was the

leader with a 51% share in terms of unit shipments during 4Q CY2010, followed by Canon

with a 46% share.

According to Mr. Anirban Banerjee, Associate Vice President, Research and

Advisory Services, CMR, "Multiple market forces have converged to drive the rise in

shipments of digital cameras in the India market in recent quarters. The most important ones

are increase in availability and sharing of digital content, increase in 'real' spending power

and reduction in average selling price."

Growing competition in recent quarters has led vendors to launch feature-rich

cameras at affordable price points. This market activity typically starts around the April-June

quarter and culminates in large sales during the 'festive' months lasting August-January,

backed by heavy advertising in popular media channels and promotional schemes.

As per CMR's study the digital camera price segment "below Rs. 10,000" contributed around

75% of total sales in the country during the October-December 2010 quarter.

2

Figure 2. India Digital Camera Market: Typical Configurations, Sales (% of units)

and ASVs, 4Q 2009 versus 4Q 2010

Quarter: 4Q 2009 4Q 2010

Most Shipped Configuration/s: < 10 MP (55%) 10-12 MP (45%), > 12 MP (39%)

Overall ASV: Rs. 11,000 Rs. 9,700

Automobile Segment:

Sales of cars and utility vehicles show an upward trend again in October as the festive

frenzy continued to drive consumers to showrooms, pushing retail sales and clearing the

inventory stock pile of vehicles swiftly.

A data of auto sales of the month of October of the year 2009 compared to the same month a

year ago. Softened lending rates and attractive benefits offered by companies pushed the


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aggregate sales of the industry to 154,476 units during the month, an increase of nearly 30 per

cent over 120,050 units reported in the same month a year ago, according to company sales

figures for last month. Domestic sales of Maruti Suzuki grew 21 per cent to 71,551 units in

October, compared with 59,127 units posted in the same month a year ago. Ritz, Swift,DZire, A-Star and Zen Estilo models accounted for a bulk of the sales.

Korean car brand Hyundai Motors India Ltd (HMIL), meanwhile, posted a robust

domestic growth of 41 per cent during the month, selling 28,301 units against 20,009 units in

October 2008. Demand for models like Santro, i10 and i20 pushed overall sales of the

company.

Proof of firmly growing buoyancy in demand, says industry.3

T Nagar Chennai:

During theDiwali month alone, more than 10 million people visit this part of the city

not just from Chennai or Tamil Nadu but from all over the country it is the busiest market

place in Chennai. An evening walk along Usman Road, a prime stretch of one of Chennais

prime shopping districts, Thiyagaraya Nagar, or T.Nagar in short, would be next to

impossible as hundreds of shoppers throng the street jostling one another looking for the best

Diwali deals.


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This Golden Furlong, dubbed so because of the scores of jewellery stores on the street,

could well be generating revenues of Rs 10,000 crores a year which again is a very

conservative estimate. For most retailers, almost 25-30 per cent of their annual turnover

comes fromDiwali sales which could stretch over a month.

T.Nagar works overtime during the Diwali month. Shops here cater to consumers

from all socio-economic segments. Because of stiff competition here, shoppers tend to benefit

the most. They can buy dress material cheaper here than anywhere else in the country.

Though T.Nagarsells literally everything from jumbo flat-panel TVs to handkerchiefs, the

area is better known for apparel and jewellery. According to sources in a retailers

association, the 800-metre-radius shopping district, houses more than 185 textile and apparel

stores spread over 5.5 lakh square feet and 65 jewellery shops spread over 2.5 lakh square

feet virtually an open mall.

Every year, at least 50,000 square feet of retail space is being added. In 2009, apart

from other players, the Tatas opened two large-format stores for their jewellery retail chain

Tanishq and consumer electronics chain Croma in T.Nagar.4

Strategies:

In a country like India, where purchase decisions are mostly driven by emotions, the

holiday season comes with a big bonus of reminding your customers about the Indian culture

by associating it with your products. Festivities provide you a very good opportunity to

reconnect with your current and prospective clients or customers. You can plan out effective

marketing strategies during the festivals that will help you in making a better connect with

your customers or clients.

During festivals, people in India are ready to spend and entrepreneurs like us prepare

months in advance to meet the surge in sales during the festival season. We have to assurethat we have enough stock. Festivals are times when various melas are held all over the

country. For small businesses like us who do not sell through the direct distributor and

retailer route the melas are a boon to introduce our product to a wide variety of customers

and make instant sales. It is also the time when we make contacts with retailers. says Mr

Anurag Jain, COO, NEEV herbal soaps.

Here are a few tips that will help to tighten the bond with clients/customers during the festive

season.


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1) Ad campaigns for festivals: During festivals likeDiwali,Holi and others, develop aninnovative ad campaign that highlights the product as a means to celebrate the

festivals. Cadbury, for instance came with a new ad campaign for their product Dairy

Milk duringDiwali through which they tried to put chocolate as a substitute for the

Diwali sweets. And to its contrary, Frito-Lays (Pepsico) Kurkure came up with an ad

campaign, Muh Kurkure karo, during the same time, which said that rather than

having excess sweets this Diwali, try the Kurkure. Innovative strategy create a

connect to the audience like making custom made soaps in the shape of heart during

Valentines Day.

2) Special Offers and discounts: During the festive season, people are interested to buynew things and companies should target on this propensity of their customers to

introduce some very attractive offers. This could be in the form of discounts, free

samples, buy-one get one free offer, and discount on second purchase and so on.

Company could launch an offer on Holi as Holi Special where you can introduce

some combos and packages, etc. It depends on the product and the unique idea that

creates the difference.

3)

Greeting cards and gifts: Giving or sending greeting cards and gifts, calling overphone to greet or sending SMSs across the companys customers is the oldest and the

best method to network with clients and customers. Use greeting card, gifts, e-cards,

phone calls and SMSs as a means to inform clients and customers of the new

schemes, offers and the companys latest product launches or some other update.

4) Sponsoring celebrations/events: As you know, Indians celebrate and enjoy thefestivals by having a get-together with friends and relatives. Companies can cash in

on this opportunity and provide them a platform to do so and at the same time you can

ensure that the company and products are promoted through it and during it.

Companies like Kingfisher can sponsor Wine/Beer Festivals, Sony music for music

festivals, Taj hotels or any company involved in tourism can host folk festivals etc.

5) Keep communicating: Most of the people think that corporate clients and thecustomers would be busy during festivals. But this is not true for all. It is this time

that they get the least calls for business development and a good time for company to

pitch. So, keep regular touch with the clients and customers during and after the

festivals.5


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The above mentioned strategies are the conventional ones and at the end of the day quality of

the advertisement and offers is what makes the difference. There can also be another

approach where the build up to a festival or an event can be strategically used to market

products. For e.g. the launch of Pepsi Blue before and during the ICC Cricket World cup wasa significant success in the year 2003. Even some changes can be brought about where the

dull periods or the non festival periods can be used to start and build on the anxiety of the

festival season thereby the whole sales and profit of the festival season can be started much

before and huge revenues can be generated. Case in point is Pothys a silk saree retailer in

Tamil Nadu.

Aadi sales & Pothys

Now the obvious question is what companies can do in the non festival periods to

market, one such strategic success story is of Pothys a silk saree retailer from Tirunelveli

and Srivilliputthur district of Tamil Nadu. Pothys had come up with its stock clearance sale in

the month ofAadi (July 15- Aug 15) many years back, these days this month is marketed as a

marketing festival in Tamil Nadu although the month is an inauspicious month as per the

Tamil calendar. There are two theories as to why Aadi is considered to be inauspicious one is

newly-wed couples are advised to stay away from each other during Aadi month. This is

because if conceived the child will be born around Apr-May which is summer and not the

ideal time to have a baby because of the heat. Second is this concept was created to give the

priests a break from work as they otherwise, cannot really take even a day off ceremonies or

rituals or death rites are performed throughout the year and they are constantly in demand for

their services.

Due to these reasons in this month no marriages were held, no new businesses were started

and no other festivals are there, which created a psychological blockage in the minds of

people to not to go for purchases and hence a lull prevailed in this period. Pothys came with

Aadi Kazhive (Stock clearance) sales, their modus operandi was simple: Purchase unsold

stock from production centres such as Surat, Kanchipuram, Arani and other places at a low

cost and sell it to customers by offering a high discount. Since this was a volume based sale

Pothys was reaping profits where as other silk saree retailers were facing a dull period. After

Pothys opened its shop in Chennai this strategy was adopted by other shops and it has been

adopted across products and fierce marketing is done to attract customers. According to

Pothys the average footfall in this month is double nearly 40000 compared to its 20000

footfall during other months. Even Vivek & Co (now Viveks) a retailer based out of Chennai


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came up with a similar strategy during the month ofMargali (Dec 15 Jan 13) which like

Aadi is also considered inauspicious around the start or mid 1980s.6

Given all this although the actually fight for customers the victory or loss can be

decided much before the festival week.

Trends

Although there has been a sharp increase in the growth of multi brand outlets and

malls its the local shops that still hold an advantage over the malls. A survey done by Market

Xcel, a market research company in 2010 in this regard over 12 cities during the festive

season of Dussehra andDiwali pointed that 65 percent of those surveyed said they preferred

local markets to modern retail when making their festival purchases. In the North, 84.1 per

cent of shoppers said they preferred local markets. The South, however, was the only

exception to this trend, with malls getting 41.9 per cent of the festive shopping traffic

compared to the 40.9 that went to the local markets and 36.6 per cent to modern retail outlets.

This trend is attributed to the profile, with a higher number of white collar executives

residing in the south zone cities, said Mr R. Vishal Oberoi, CEO, Market Xcel.

The Market Xcel survey also tries to understand why and what people buy during

festivals. And which festivals see the biggest shopping splurge. Despite regional variations,

such as Sankranti being big in the South and Holi in the North, Diwali, as expected,

dominates the charts everywhere, except for the Eastern region, where Dussehra tops.

It finds that traditional beliefs are the biggest triggers for festival purchases with

discounts being the second biggest trigger. Clothes dominate the purchase basket, followed

by durables, household goods including utensils and jewellery.

The North has the big-ticket shoppers with over 6 per cent of those surveyed

spending Rs 10,000 and above. 7

Another customer survey indicated that the customer group who belong to 15-24 age group

prefer simple discounts like flat percentage offers which is a price discount whereas the other

group namely the 24-40 age group preferred complex deals like quantity discount wherein the

percentage savings is not obvious. They believe that more cost savings occur in this type of

deals. This customer groups predominantly consist of married couples with children who

shop having their family in mind. They have a notion that with quantity discount more

savings can be done as their shopping quantity increases than normal in one purchase itself.


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On the other hand a young customer group of college students and working professionals

value money more than value. They see more savings on a direct discount on the apparel and

hence believe that there is more savings in money in price discount. They don't analyze

complex deals and the actual savings they derive from it, thus preferring simple deals. One ofthe main reasons for this attitude is that they are being supported by their family financially

and they do not see a reason to save money.

This has huge implications to the store as the consumer surplus can be tapped by

targeting both the groups with different discounts and hence increases the top line. Quantity

discount should be directed towards 24-40 age group customers whereas simple percentage

sales should be offered to 15-24 age group customers. Advertisements of these deals should

be such that it appeals to the customer segment on which it is being targeted. So, profit of the

store will increase due to proper direction of the offer.8

Conclusion

It is very clear that there is very high potential available for the companies to

capitalize during the festival season in India; since the festivities are an emotional factor to

the people here the company just needs to position its product in the right manner and market

it properly. Companies need to make sure that they launch new products and create a want for

these products apart from giving offers and freebies to attract more customers.

Also, it is important to create a proper build up to the festival to attract more

consumers, at the end its up to the marketers to convert a single day festival to a festival

season and project their product as a necessity for the celebrations.


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References

1) URL: http://targetstudy.com/festivals/2) URL: http://www.cmrindia.com/press_releases/9may2011.asp3) URL: http://business-standard.com/india/news/auto-sales-vroom-30festive-

spirit/375129/

4) URL: http://www.thehindubusinessline.com/todays-paper/article1067032.ece5) URL: http://sme.franchiseindia.com/articles/Managing-a-Business/Sales-Marketing-

Advertising/Marketing-Strategies-that-work-during-festivals-95/

6) URL: http://chennai.metblogs.com/2006/07/30/the-legend-of-aadi-masam-the-sale-connection/

7) URL: http://www.market-xcel.com/release/Xcel%20Omnibus%20in%20Hindu%20Business%20Line.pdf

8) URL: http://tejas-iimb.org/articles/28.php

215111045 Santhosh Festival Marketing

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