Kids in the driver seatKids in the driver seat

The presentation is based on an article The presentation is based on an article published in “Times of India” by published in “Times of India” by

Atul Sethi on Marketing.Atul Sethi on Marketing.

The Marketing Mix-- 4 P’s of The Marketing Mix-- 4 P’s of Philip KotlerPhilip Kotler

Product Product PricePricePlace Place PromotionPromotion

Pester Power the 5th P

• Ability of children to influence parents into buying decision.

• According to Brand consultant Harish Bijoor “Tell them the product and they can come up with brands, options, prices and even the best idea to boot.”

Evolution of Pester Evolution of Pester PowerPower

Concept of “Participatory Decision Concept of “Participatory Decision Making” Making”

According to Gayatri Puri advocate, According to Gayatri Puri advocate, “Very few buying decisions in our “Very few buying decisions in our family are taken without the active family are taken without the active involvement of my two sons Aahsas, 14, involvement of my two sons Aahsas, 14, and Aakarsh, 9. Often they give us and Aakarsh, 9. Often they give us suggestions and bits of information of suggestions and bits of information of household products that leave us household products that leave us amazed,”amazed,”

Active Involvement of Kids Active Involvement of Kids in Buying Decisionsin Buying Decisions

Interest of children in areas not Interest of children in areas not related to them.related to them.

Buying decisions would be faster if Buying decisions would be faster if kids are involved.kids are involved.

Kids Getting Older Younger Kids Getting Older Younger (KGOY) Generation(KGOY) Generation

“ “Children today seamlessly merge the physical and Children today seamlessly merge the physical and digital. They learn early on how to heat their digital. They learn early on how to heat their food when their parents are late from work, how food when their parents are late from work, how to get the washing machine going and so on … to get the washing machine going and so on … this participation has an impact on the decision this participation has an impact on the decision

making process.”making process.”

•With early maturing and awareness comes opinion, which is encouraged and heard by parents

(According to Sheetal Jayaraj of Bangalore-based marketing consultancy, Insight Instore)

Families as Families as MinidemocraciesMinidemocracies

Product managers Product managers are viewing are viewing families as families as minidemocracies minidemocracies where “kids have where “kids have an active say”an active say”

Decisions are Decisions are made by made by discussions and discussions and consensus.consensus.

““with a car being a with a car being a marker for style marker for style and status, and status, children are not children are not immune to peer immune to peer pressure of pressure of having to own having to own ‘the biggest and ‘the biggest and the best’ the best’

(Jayraj)(Jayraj)

Brand Communication Strategies Brand Communication Strategies for Childrenfor Children

Prime time slots on Prime time slots on kids channelskids channels

In-film promotion In-film promotion where the hero where the hero uses a particular uses a particular brand of phone or brand of phone or drives a desired car.drives a desired car.

Use of graphics at Use of graphics at retail levelretail level

Licensing Licensing agreementsagreements

Flip SideFlip Side

Children may be Children may be getting drawn into getting drawn into consumerist consumerist tendencies that tendencies that might go on to might go on to define their define their personality.personality.

“When I see younger children making friends with only those who are familiarwith top note brand name , I find it quit

Disturbing.”( Rashmi Batra, a teacher at Leading

Public School in Delhi. )

Brand Bombardment – The Brand Bombardment – The DownsideDownside

An average urban kid sees hundredsof adds every day but dose not have

the life skills to differentiate on thebasis of product attributes-a thing that

comes with experience.(Rajat Mitra, Psychologist)

Instead of identifying with parents,Children today are identifying more

with their favorite character on television who’s asking them to buysomething. This is not a good sign.

(Rajat Mitra, Psychologist )

MORE IN THEIR PURSESMORE IN THEIR PURSES

► The pocket money of urban The pocket money of urban Indian kids 10-17 years Indian kids 10-17 years have gone up more then 4 have gone up more then 4 times in past 10 years.times in past 10 years.

► Girls spend the money on Girls spend the money on clothes, cosmetics and clothes, cosmetics and toiletries while boys spend toiletries while boys spend mostly on computer games. mostly on computer games. Both spend on DVD’s, Both spend on DVD’s, mobile phones and outings.mobile phones and outings.

CITIESCITIES POKET POKET MONEY OF MONEY OF CHILDRENCHILDREN

DelhiDelhi 18001800

BangalorBangaloree

16001600

MumbaiMumbai 15001500

ChennaiChennai 14501450

KolkataKolkata 12001200

Critical EvaluationCritical Evaluation““Pester power” is an important Pester power” is an important factor to be considered in factor to be considered in promotional strategies.promotional strategies.Children’s involvement in Children’s involvement in financial decisions--consequences.financial decisions--consequences.““Minidemocracies” – case not Minidemocracies” – case not applicable to all society.applicable to all society.““children are becoming status children are becoming status conscious”conscious”The KGOY Generation the result The KGOY Generation the result of natural evolutionof natural evolution..

The Case of “Pester The Case of “Pester Power”Power”

Pester power is an important factor to be Pester power is an important factor to be recognized in the promotional strategies.recognized in the promotional strategies.

It may form a vital part of “Promotion”.It may form a vital part of “Promotion”. The author in an effort to make his article The author in an effort to make his article

commensurate with the theme of day, has commensurate with the theme of day, has introduced the concepts of “Pester introduced the concepts of “Pester power” and “participatory”.power” and “participatory”.

In each area of marketing, marketing mix In each area of marketing, marketing mix has its own unique set of Ps.has its own unique set of Ps.

Children’s Active Children’s Active InvolvementInvolvement

The article makes an impression as The article makes an impression as children's have an adequate knowledge children's have an adequate knowledge of decision making and finance. Do of decision making and finance. Do they know about consumer rights?they know about consumer rights?

““Excess of everything is bad” – So is Excess of everything is bad” – So is true in children’s excessive true in children’s excessive involvement in buying decisions.involvement in buying decisions.

Children may be drawn in negative Children may be drawn in negative tendencies, such as spending out of tendencies, such as spending out of pocket etc.pocket etc.

““Minidemocrecies” - not a Minidemocrecies” - not a universal phenomenonuniversal phenomenon

The concept of families as The concept of families as minidemocreacies seems not universal.minidemocreacies seems not universal.

In Eastern cultures, rural joint family In Eastern cultures, rural joint family and urban orthodox family system and urban orthodox family system children have a restricted say on children have a restricted say on different matters.different matters.

In Western world, “blendid families” In Western world, “blendid families” children lack “freedom of expression”.children lack “freedom of expression”.

Children’s Status Children’s Status ConsciousnessConsciousness

Children’s urge of “biggest and the Children’s urge of “biggest and the best”best”

Children’s usual conversation Children’s usual conversation includes talk of brands and the includes talk of brands and the innovations.innovations.

Children’s keenness of having status Children’s keenness of having status symbols.symbols.

Advertisements showing children Advertisements showing children talking brands are on the rampant.talking brands are on the rampant.

KGOY “The natural KGOY “The natural Phenomenon”Phenomenon”

Every next generation is better than the Every next generation is better than the previous one.previous one.

Marketers and brand managers must Marketers and brand managers must consider the concept “Human consider the concept “Human evolution”.evolution”.

Reading between the Reading between the lines----An interesting lines----An interesting

findingfinding The children The children

residing in the residing in the areas where areas where economic activities economic activities are optimum have are optimum have less in their less in their pocketspockets

Children's Pocket Money

Kolkata

ChennaiMumbaiBanglore

Dehli

0

500

1000

1500

2000

1 2 3 4 5

Cities

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Mo

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