'The younger audience buys into the experience first and the brand later’ 

MullenLowe Group’s S Subramanyeswar and Spring Marketing Capital’s Raja Ganapathy shared insights on brand fandom during Spotify Hits.

Noel Dsouza

Nov 28, 2024, 11:42 am

From left: Neha Ahuja, Raja Ganapathy and S Subramanyeswar (Subbu).

Spotify held an event in Mumbai on 27 November to celebrate Spotify Hits, showcasing the platform’s 'standout campaigns from 2024'.

Spotify Hits, making its debut in India, is a global program honouring creative excellence in advertising. Since its launch in Mexico in 2022, it has expanded to 12 markets worldwide, with India being the most recent addition.

The event honoured nine campaigns that exemplified innovation and pushed the creative boundaries of brand storytelling on the platform.

During the evening, a panel discussion titled 'Think Like a Fan, Act Like a Marketer' was moderated by Neha Ahuja, director and head of marketing, Spotify India. The panel comprised S Subramanyeswar (Subbu), group CEO - India, and chief strategy officer - APAC, MullenLowe Group, and Raja Ganapathy, founder and partner, Spring Marketing Capital. 

The conversation underscored the shift in modern marketing towards consumer-centric strategies, where consumers are actively involved in shaping brand value. The panellists also discussed how authenticity and aligning with consumer values are crucial for building brand fandom, especially among younger, more discerning consumers.

Consumer-centric marketing and the role of fans

Ganapathy kicked off the conversation shedding light on the evolving dynamics of India’s youth.

He said, "Younger people connect with brands differently than older generations. When we think of fans, words like obsession, disappointment, a desire to go behind the scenes, and memes come to mind. This type of engagement is vastly different from how consumers interacted with brands 20 years ago."

He then highlighted that Indian consumers now are younger, more demanding, and deeply discerning. He described them as those who are not just passive recipients of brand messaging but active participants in the conversation, seeking knowledge and gossip about their favourite and not-so-favourite brands.

"This fan behaviour is becoming a prominent trend in branding. Just think about the fervour surrounding Taylor Swift's fandom, that’s the kind of passion we are seeing from young people towards anything they like or dislike," Ganapathy observed.

Ganapathy further underscored how the current cultural landscape, defined by certainty and uncertainty, demands a shift in brand strategies. "Brands need to be honest and take a stance," he said.

Reflecting on the past, he noted, "Historically, many brands avoided having a distinct point of view to appeal to a broader audience, but that era is coming to an end. We are moving toward a landscape where brands must be clear about their positions and connect meaningfully with their consumers."

As an example of this bold new approach, he pointed out how Nike takes strong stands, even at the risk of alienating certain consumers temporarily. 

"Nike acknowledged that some people might choose not to purchase their products for a period, and they embraced that risk. This is the direction we’re heading in—a more engaged, discerning younger consumer who demands a completely different marketing approach."

When it comes to the essence of fandom, Subbu shared, "When I think of a fan, I recall the experience of attending an IPL or PPL match in a stadium. There is something magical about it that sets it apart from watching the game on a television screen. The first images that come to mind are those of the fans screaming and yelling, creating an energy and bond that just rubs off on you. It’s an experience one wants to fully immerse themselves in, and it’s truly wonderful."

Subbu compared raw passion to the loyalty successful brands evoke in their customers. "Just like passionate fans, we want the same loyalty and enthusiasm from our customers. When brands achieve that response, it’s fantastic. The challenge is: how do we foster this loyalty and turn customers into dedicated fans?" he asked.

Lego as a model for fan engagement

For Subbu, Lego stands out as a brand that has mastered the art of building this level of commitment. "Lego has millions of customers worldwide and has done an exceptional job of transforming these customers into passionate fans. They exemplify how to effectively turn customers into advocates. Remarkably, Lego has managed to increase their revenue without raising their marketing budget, which is music to any CEO's ears."

What makes Lego’s approach particularly compelling is its focus on relationships rather than traditional metrics. 

"Lego’s fans return time and again because of the strong affinity the brand fosters. They give their customers a sense of belonging," Subbu explained. 

"Interestingly, Lego doesn't focus on metrics like the number of bricks sold or units moved. Instead, they measure their success by how many new relationships they create. Their marketing team sets a target to create thousands of new relationships each month, which is a refreshing approach," he added.

He emphasised that the language Lego uses reflects its forward-thinking strategy.

"Lego avoids using the term 'market share' and instead talks about 'lifetime share.' They contemplate how long a customer will remain engaged with the brand—60, 70, or even 80 years—and how they can continue to be part of that customer’s life. This perspective is beautiful and strategic," he added.

Reflecting on these insights, Subbu explained the broader implications for brand strategy. 

"The key takeaway is that brands can truly differentiate themselves by converting customers into fans and inspiring them to advocate for the brand," he shared.

Segmenting fans for better engagement

Subbu brought a fresh perspective to the discussion, drawing inspiration from sports to illustrate how brands can rethink their approach to fans. "My experience with the Mumbai Indians has shown me that we need to segment customers—viewed as fans—differently than in classical marketing. We divide fans into three categories: followers, insiders, and feeders. Each of these segments requires a distinct approach," he explained.

Ganapathy brought a candid perspective to the challenge of creating true brand loyalty. “Becoming a fan of a brand is not an easy feat,” he began. 

"You might easily become a fan of Taylor Swift, Virat Kohli, or a particular movie, but developing a true fandom around a brand is much more challenging. Brands that create a cult following and evoke strong emotions possess a significant advantage. I remember my time working with Royal Enfield; any change made to the bike would provoke intense reactions because Royal Enfield customers are genuine fans. Achieving this level of loyalty is extremely difficult.”

He added, "Reaching a point where a brand inspires this kind of loyalty is, in my opinion, the ultimate goal of marketing, but it’s not easy.”

The appeal of new-age brands

Ganapathy shifted focus to the inherent strengths of new-age brands. 

“They often start with an advantage. They tend to be perceived as cooler, and their founders usually have compelling origin stories. These brands are often viewed as more authentic. For instance, they can make quicker decisions without needing global approval, allowing them to change their brand's trajectory rapidly. Most importantly, they can be authentic and connect personally with their audience, which are significant advantages,” he said.

The essence of brand authenticity

To underscore the importance of authenticity, Ganapathy shared, “A few years ago, I heard Will Smith speak at a conference. He recounted a dinner at home when his son Jaden announced that he and his girlfriend had decided to have an open relationship. Will turned to him and asked what an open relationship was, questioning why Jaden couldn’t just say he wanted to cheat. Jaden responded with surprise, pointing out that cheating isn’t acceptable anymore.”

He leaned into the takeaway from this anecdote. “This story illustrates part of the key to building fandom: it all comes down to authenticity. We live in a world where authenticity is essential. In recent years, many big brands have been called out for misleading information and unsubstantiated claims, stemming from a lack of authenticity. The first step in creating fandom is to be genuine.”

The shift in consumer behaviour over the past decades was another factor Ganapathy highlighted. He voiced, “Today, consumers have access to information about who you are, how you think, and why you do what you do. The marketing landscape has changed dramatically over the last 20 to 30 years. In the past, marketers could control the flow of information, leaving consumers with limited access to the brand. Now, consumers can call out brands on social media, ask questions, and demand accountability for claims made.”

Highlighting the edge purpose-driven startups have, Ganapathy remarked, “As a founder with a purpose, you stay true to your core values. Connecting authentically with your audience can foster lasting loyalty, laying the groundwork for building fandom, which is a complex but rewarding challenge.”

Forward-looking trends

The consumer landscape is shifting, noted Subbu.  

“There's a fundamental change in consumer behaviour. For instance, with Nescafe, one used to enjoy the product itself first. However, now, younger consumers prioritise the experience before trying the product. They invest in the experience first, shaping their opinions about the brand afterwards. Thus, focusing on the experience is crucial, as it resonates more with the younger generation and influences brand loyalty," he shared.

Ganapathy highlighted the impact of India's young population on future trends in investing and business. “In 10 to 15 years, discussions will focus on how young people are reshaping these sectors,” he noted.

“While there is talk about their influence on consumption, we have only just begun to explore this potential. With Gen Z, aged 15 to 27, actively making purchases and redefining business practices, their experiences will significantly shape India's future,” he added.

Ganapathy ended the panel by stating how the ongoing shift is often overlooked. 

"This change is unfolding and may go unnoticed, but you will see signs of it in one's workplace and among brands. It's the start of a significant trend in India: the youthfulness of the population, their generational differences, and their ability to change narratives across industries," he concluded.

Source: MANIFEST MEDIA

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