Brand building crucial in healthcare & organised retail sectors

MUMBAI: The second session of the AAAI seminar delved into the evolving sectors like automotive, lifestyle, healthcare and retail. The session was chaired by Abbott India Ltd managing director Vivek Mohan.

The speakers were McCann (Healtcare) Asia Pacific regional director John Cahill and Caf? Coffee Day senior general manager (marketing) Sudipta Sengupta.


Mohan said that today there are a lot of options that were available and the consumer was aware of all of them. "People have access to global media and are aware of the latest trends. Newer retail formats are now being made available to them and people are allocating more income towards discretionary activities. They are focusing more on healthcare and well being and there is a rise in consciousness of brands among them," he said.



Cahill threw light on the healthcare communication industry stating that there was a lot of potential and opportunities in the healthcare sector. The APac healthcare expenditure is close to $463 billion. On the other hand, the communication spend in the region on healthcare was around $16.4 billion. In India spends on healthcare is $200 million (1.2 per cent) compared to Japan's $10.4 billion (63.4 per cent).



The pharmaceutical industry in India has doubled in the last 10 years and is presently pegged at $21 billion. Cahill said that the same was expected to double in the next years. Today there are 1.6 million doctors in India and the Indian OTC healthcare industry is worth $570 million, which is growing at a 20 per cent rate. The Indian medical advertising industry is pegged at $300 million and is growing at a rate of 30 per cent.

"Hence healthcare is here to stay. It hasn't been easy for this sector in India as it is a complex industry and India is extremely price sensitive. Notwithstanding the fact that there are rampant unethical practices carried out in the country. But all this is changing and only the fittest will survive. Brand building will be the new mantra for the healthcare sector to survive," he said.

Sengupta, on the other hand said that organsied retail was the world's largest private industry and was pegged at $7 trillion.

Predicting the growth of the Indian retail industry in the next few years, she said that 40 - 50 per cent of all spends will switch to organized retail and the turnover of $12,000 billion will double in five years.

"Brand building via mass media, controlled spillovers at target trade areas, below the line activities, word of mouth and strengthening public relations by making credible investment in it are what will drive the retail sector," Sengupta said.

The effective use of PR, movies and television are what helped grow the Caf? Coffee Day brand. The coffee major decides on one major story for the year with a single focus and builds media hype around it. Also retail space is provided by them for shooting for films and television serials. Thereafter the coffee outlet also helps producers in joint promotions for their films/serials by weaving contests around it for customers.

Caf? Coffee Day also tied up with Levis' and TVS Scooty by promoting their new products innovatively at their outlets across the country.

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