Demand Creation - A Study

If you have to make a business successful, you have to #createdemand. Budding entrepreneurs have the brains to create a pathbreaking product but when you start talking to them about creating demand there is a brief silence.

The journey of an entrepreneur starts with a great idea which they work upon to create a product. Then comes the next stage where they build up a world-class factory that will produce the goods in bulk. The next steps are #investment in #salesforces, systems, distribution and you are ready to go.

The above process is absolutely correct but what they leave is the people who are responsible for generating business for them – The #customers. The business plan covers everything but #customercreation. I do not say that they do not think about the customer but more often than not they are at the bottom of the pyramid. Tilt the pyramid upside down, the edge on which the pyramid stands are the customers. This is the core of the business and customers are the pillar of the business. You leave them unattended and the business will collapse.

This is the story behind many who fall in business. Never do they care about the customers. Look at the diagram below.

What you see is there is an arrow from the manufacturer, to the CFA (carrying and forwarding agent /SS (super stockiest), to the retailer. But there is no arrow from the retailer to the customer. Imagine yourself as someone who manufactures packaged tea. With #distributionmanagement (which is also a skill) done properly, you have managed to get the products on the shelf. Now a consumer walks into the store and let’s think that he is definite to buy a tea powder. Without going anywhere, he lands up in the category. I want you to stop, here. Think and then read the next. Of the various possibilities, the following could happen-

1. He picks the brand and moves out (#loyalcustomer ).
2. He looks at all the options (category awareness) but ends up picking what he wants.
3. She looks at all products but picks up the one in which she gets a discount. (#switcher )
4. She comes with customer feedback (#influencers ) & based on their suggestion picks up a brand.
5. He is attracted by a certain packing, evaluates, and picks it up. (#Packaging first selling point)
6. He is approached by a promoter (#pushsales)

• She is abrupt and is not able to promote the brand, customer leaves forever.
• She is cordial and explains well, customer picks up

The above and many other possibilities can happen. In cases 1 & 2, nothing remarkable happens. Loyal customer remains loyal. In cases 3,4,5 and 6 if she is persuaded well, she will pick the product. The game changes from here. Once picked the product has to meet/exceed customer expectations. If he likes then the second part of the job is done (the first being distributor management). Repeat customer created (not loyal yet). If the #product fails, you have to pack up your bags. This is an affirmation to the statement – “the product is the HERO”, it has to deliver every time.

The type of product and the kind of customer entering the store matter. The Law of diffusion of innovation, (majorly used in technical goods) can be taken as a reference here. Innovators are most likely to pick up the product (new). After them, the early adopter and early majority will chip in, and so on. As a marketer, it is important to know the profile of the store, the more experimentative the customers the higher the chance of a pick-up from the store. Therefore, never discount the role of store selection.

Now looks at the same slide. But with an arrow from the customer to the retailer. What the customer picks up is purely on how well the brand is positioned in his mind. His interaction with the brand is explained in the above example. To elaborate a little more on this, lets us take the example of a curd. When you enter the aisle where the curd is placed, you see many brands on it. That is distribution and the role of distribution ends at the shelf. What the customer picks up is his choice and that is why you have to create demand.

Now let me address to you how we create demand. I can keep on writing for hours on this never-ending subject, but to keep it short I will emphasize on some simple proven techniques. Although sounds simple, it is very difficult to execute.

1. The packaging has to speak out. Remember it is your 5-second salesman. The chances of an attractive product being lifted are much higher than the one that is not attractive.
2. The product has to stand out. Small things such as wobblers, shelf-strip are hygiene requirements to attract customers.
3. Dust on the pack can be a disaster. Remember customer will never touch any pack which is dirty.
4. Sampler is an effective tool to create trials. However, the consumer must try it.
5. Promotion through #instorepromoters can help push products to the customer. Inform consumers know how to use the product.
6. Wet trials are proven techniques to create demand.
7. In-store #visibility is also result oriented. To do it successfully you need to know the footfall of the store.
8. The LCD displays although small may create some awareness.
9. #fsu / #displaystands when stands out in the store, it becomes the center of attraction.
10. Retailer involvement is the master stroke. When he speaks for the product, the consumer will buy.

The above are the few methods that company of any size can adopt to win customers. Also known as #btl (Below the line) these have helped many companies to gain momentum.

The next comes #atl (Above the line) when you have to reach mass audience through a medium that has high reach. These are mediums such as television, radio, outdoor to name a few. But remember if you do it without a proper distribution reach it is going to backfire.

Today, the buzz is online. Some call it #digitalmarketing or #ttl (Through the line). On average a person generally spends 2 hours and 30 minutes in the digital medium. Therefore, creating demand through them becomes fruitful. If any influencer who has above 1,00,000 lac #followers who match with your target audience, talks or demonstrates about your product, then their followers can know about the brand. It will have a better impact if the company has its own e-commerce site. This is for the very reason that when you land on sites like #Amazon or #Flipkart, they have their algorithms through which they give suggestions of competitor brands. Result, they may end up buying competitor's brand, rather than yours. Note, it is you who has done the spending that benefitted the competition.

In a gist, the above were the way in which you can create demand. A little more attention has to be paid to what are you communicating. If your communication is not clear, it will confuse the customer and the process of demand creating will not work. Therefore brainstorm, till you do not get to the point of what you have to say. Not only this, the way you converse must create curiosity. A mundane way of talking will never create excitement.

Before I end, there is one more point that I would like to address. There is a question that most people ask me – How long do we have to do it? The answer is – “till the time the customer does not come in asking for your product”. Then the next question. So, we stop after it. The answer is – NO. You never stop communicating with the customer. Do it intermittently. Once demand is created, the product is known you continue with ATL, BTL, or TTL for 3 prime purposes

• To remind and be relevant
• To create an entry barrier for a competitor
• To increase sales

Well, that is in a nutshell what demand creation is. Without creating demand no matter how good your product is, it will never get its due. It is expensive and time-consuming. It must only be done after your soft launch has shown promising results. It will keep you in business. It is what will create a #brand.