Q] Can you shed some light on your brand journey and how it has strengthened over the years? Also, what innovative marketing strategies do you use to reach out to the masses?
My father started this company with his brother in Indore in 1992 in a garage, and in 2000, the brand Zed Black became an established name in the agarbatti segment. After 32 years, we have about 10 lakh sq ft. of space, four factories. 800 plus SKUs, 3500 plus distributors, 34 regional sales offices, and one international office in the US. In 2017, we got MS Dhoni on board, and that is when the media took note of us. In 2021, we onboarded Hrithik Roshan.
Today, we are making about three and a half crore sticks per day. We are in the top five in all the categories of agarbatti, like dhoop batti, dhoop cones, dhoop sticks, and hawan samagri.
As far as innovation and marketing are concerned, we do engage in a lot of activities. We give out free samples to allow customers to get used to the product. Apart from that, we do a lot of on-ground activities as well. But of course, the major change happened when we put Dhoni on the packaging. Also, most brands barely even have one A-list celebrity, and we have two, one for agarbatti and one for dhoop.
Q] Which medium do you aggressively target for your brand visibility and why? Can you elaborate on how you allocate your marketing budget on various platforms?
Agarbatti is a mass product that is mostly sold in the rural market, so our main TG is in the rural market. Zed Black is a product that is very popular there. We plan to target the masses and Print (newspapers) and Television are the best mediums for that. These mediums may not be very targeted, but they serve the purpose of reaching the masses. Also, when you advertise on top channels, the customer feels that this is a top brand. That’s how we build trust.
Q] What trends are you observing related to the slowdown? What is the way ahead?
I always say that there are two products that people use during both happy and sad occasions. One is agarbatti and the other is alcohol. These two are unaffected by slow market or inflation. I also feel that there is no slowdown, it’s just that the competition has increased. With technology coming into the picture, everything is now on your fingertips. Customers have become more aware and vigilant, they have more options. Once upon a time the customer only had a next-door kirana shop, but now he has a hypermart, Amazon, quick commerce, and so on. There is more competition when compared to the consumption of products. You must be on your toes to grab that market share by listening to the customer and your salespeople, paying attention to marketing feedback and making changes. It is important to be flexible.
Q] There are too many new brands coming into the market, how does that affect you? Who do you consider your competition today?
When we talk about agarbatti, 65 to 75 percent of it is an unorganised market. It’s a price-sensitive commodity which is highly anonymized because there is no entry barrier as such. So, our competitors are majorly at the regional level where there are regional products. There is no one competitor as it varies from state to state. Even though we are a branded product, the unorganised local players are our competitors. We may have Dhoni on board, but when it comes to price, we have to fight with everyone.
Q] Currently, what is your marketing mix, and how do you break it down? Also, do you think that post-pandemic, the brand messaging and propositions in India have changed?
Marketing for us majorly means the electronic media and the offers that we run. By giving offers, we push our products to retailers who are the actual flag bearers of our products. When it comes to the pull, it’s through the electronic media and newspapers. This is where consumers can see our products and decide to go to the shop and make a purchase.
A younger cousin of mine was admitted to the hospital during COVID. Speaking of the impact of that harrowing experience, he had told me that it changed his thought process towards life. So after almost two years of lockdown and all the bad experiences, people now want to go out and experience products. They want to buy good and reliable products. Yes, COVID has changed the buying behaviour of the Indian consumer.
Q] What are your views on TV? Do you still advertise on it? Also, can you share some insights on how you market your brand via TV?
We are not big into digital marketing because we feel that our product is a regular commodity that is sold in the rural market. Also, we have seen that Digital is very expensive. We don’t know what the impact impressions are, or where the money is. Digital or social media marketing depends on the brand’s needs. For example, for mobile phones, footwear or garments, Digital can be a very good medium. But, I don’t think that customers are on the internet to buy agarbatti. We do have a social media presence on Instagram, but when it comes to marketing, we are not looking forward to it as of now. We believe in conventional mass appeal, and value for money, and we have found success in Television and Print.
Q] If you compare television and newspapers, what percentage would go to each of these?
About 30 percent would go to newspapers, and 70 percent to television. But this depends on the ambition of the campaign. Our campaign with Dhoni was Print-based because it was more trade-focused. Nowadays, we are brand-focused, and so we have shifted to television. But I think newspapers still have a very good market. People trust brands that advertise in newspapers.
Q] What is your advertising strategy for the upcoming General Elections in India and which are the mediums that you shall specifically target?
The impact of advertising on news channels during elections is very good. The last time we advertised was during the state election results. We did a special integration with one of the channels where there was a podium which had our brand logo. The response was very good because obviously, people are glued to their television sets all day. Our Prime Minister has made every election equally big, even if it is a municipality election. Moreover, the general elections are more like Presidential elections in the US. It is all about selecting a Prime Minister. We have done newspaper ads as well, a corporate social responsibility advertisement where we asked people to go out and vote.
Q] If you had to choose between Print and Television, which one would you prefer for the elections?
Honestly, there’s no comparison because the day of the results is the main day, and that day it is all about television. Everyone is glued to their television sets, and you as a brand must be present on TV that day.
Q] Lastly, what is your roadmap for growth?
Our plan is simple – listen to the customer at all times. We have recently ventured into the pooja category. Pooja was never a category before COVID. It includes the things you offer to deities when you go to a temple – agarbatti, garland, camphor, chandan tika, kumkum, among other things. We have also ventured into Samarpan category and received a very good response. Also, religion is becoming quite big in the country with the Ram Mandir in Ayodhya, and the various Dhams, etc. We are positive that the agarbatti and pooja categories are going to grow in future.
