 "Advertisements should target customers, not awards juries: R S Sodhi")
The last slide of R S Sodhi's presentation at the recently concluded Goafest questioned the logic behind advertising awards and suggested doing away with the same. Those can be termed as famous last words as a few days after the ad fest was over, it was marred by controversy over recall of award -winning campaigns. The managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), popularly known as Amul, speaks to Vinay Umarji & Kalpesh Damor. Edited excerpts.
The Goafest finds itself embroiled in controversy. What are your views?
The advertising fraternity is debating the right thing. Creatives that are made for awards and not released in mainstream media should not be awarded. If the client is not ready to invest in a creative, how can you say it is a good creative? Everybody has now agreed that the current type of awards should be discontinued. A good creative is one which is easily understood by the consumer and not just by the creative head of an agency. In Goafest, we were being shown a gallery full of advertising award entries and I had an MD with me who said she had not seen a single of those in mainstream media.
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Do you think such controversial campaigns affect brands?
They won't affect the brands but they affect the people associated with the brand, especially on the creative side, agency side and the brand managers. The JWT-Ford controversy doesn't affect Ford as a brand. This is because it (controversy) is largely restricted to the advertising and media fraternity. The common man is not even aware of such a controversy.
Do you think the client (i.e. brands/companies) need to play a more proactive role while an advertising campaign is being designed by agencies?
The agency should make a creative that a common man can understand, co-relate, appreciate and buy. But if the agency thinks that it has to create a creative that can win an award, then it will make one that will talk only to the advertising people or the awards juries. However, I believe agencies are manned by professionals and they know better. You cannot dictate terms to them and say you have to make such and such ads. It is the job of the agency only, not that of a client.
But has the controversy shaken up the trust between agencies and clients?
I think yes. It's good that the controversy has been raised and at least people are thinking and talking about it.
What lessons do you think companies should learn from Goafest?
You can't build brands just by spending on advertising. If your creative route is not good, you end up spending more. One has to make a creative that attracts the target audience. If a creative wins an award but is not understood by consumers, it is a waste of money.
Amul spends less than one per cent of its revenues on advertising and branding and still enjoys one of the highest brand recall value. What teh secret of your success?
First, 'jo chal raha hai use chalne dena chahiye' (one should continue with what's working). For instance, our Butter Girl has been running since decades, so why change it? Usually in an agency, people change and every new person wants to deliver her own baby. A new marketing director also thinks likewise. Amul has taught the world that if something is working well, it shouldn't be changed.
This year, Amul hasn't sponsored many sporting events unlike last year when it sponsored IPL, Formula One and Olympics. Why?
We have sponsored the 'Extra Innings' slot in the IPL. Ours is an uncluttered way of sponsoring; once done, its effect continues for long. We don't keep doing it again and again. You have to also see money-wise benefits that we get from these sponsorships since they are very expensive.
Many private dairy players are expanding rapidly. Is it a matter of concern for Amul?
Any industry will grow when either demand increases or production increases. Fortunately in the dairy sector, both demand as well as production is growing. Demand is growing due to increased prosperity as well as more people moving from loose milk to packaged milk. So if the total dairy industry is growing by 5 per cent, the branded segment is growing by more than 10-12 per cent. On the other hand, supply is growing because farmers are getting better prices.
In the last three years, we have increased prices for our farmers by 60 per cent and in return we are getting 48 per cent more milk from them. In the same period, we have added 5 million litres of milk whereas it took us 12 years to add the previous 5 million litres. As for competition, the organised sector is handling only 20 per cent of the country's total milk production. Competition is also good for farmers.
Amul was planning to repackage several of its products. Are there any other products after cheese that you plan to repackage?
We are going to launch a new package for our milk beverages like Amul Kool. We have imported a whole new PET bottle production line from Italy which will manufacture 600,000 PET bottles of 200 ml everyday at our Ahmedabad plant.
These PET bottles have longer shelf life of 180 days for flavoured milk, lassi and cold coffee. Earlier one couldn't carry the glass bottles but this packaging will last longer. Moreover, we have planned aggressive pricing for this new PET bottle.