Hiral Arora reports from Colloquium, the annual business conclave of IIM Indore organised by Industry Interaction Cell, talking about how to be an all round marketeer with a one to one interaction with Mr Avinash Janjire who has been associated with Future Generali and Thomas Cook travels.
In an awe-inspiring talk and lessons from his personal life, Mr Janjire took us through some interesting marketing campaigns from his work experience. As a context of his work in the Insurance sector, you might like to check this video explaining the Insurance Week Campaign, that resulted in breaking of the Guinness World Record for the Longest Balloon Chain.
Additionally, as a context for his work in the Tourism sector, you might want to check out the following explanatory video for Thomas Cook’s innovative Holiday Savings account scheme.
Hiral: As a marketer, how did you manage to work in two completely different product segments – Tourism (an extremely glam industry!) and Insurance (hard to sell, boring industry)?
Mr Avinash Janjire: I believe the experience doesn’t really change. As long as you understand the consumer and their needs, the industry doesn’t matter. You need to have the knack of understanding the consumer, the industry you can learn. Tomorrow I might join some other industry, except engineering perhaps, like an FMCG, and it won’t really make a difference. That’s the key.
H: When you portray Thomas Cook holidays as an affordable brand, does it not dilute the premium image it has right now?
A: That’s really a misconception. We have been here for about 150 years and people think that we are very expensive, but we’re not really that expensive. That’s because the product is such. We have holidays starting at ₹20000 also. But its just that the premium image comes because we sell a lot of these long haul holidays to Europe, US – which are expensive. This makes people believe that ‘this brand is not for me’.
If you compare us with any other competitive brand in the market like makemytrip or SOTC, we are at par in terms of price, we are very competitive. So while we have this premium image, we don’t complain about it, but it is not necessarily true. We are trying to change this idea because otherwise we limit ourselves to a very small segment of holiday goers. We want to go to middle India which has increasing aspiration for travel, beyond the 6 million people who already travel with us, and increase the size of the travel market base. 40% of our business comes from small towns. People want to go for holidays but price is a barrier. We want people to think that we are good but competitive. Not cheap, but competitive.
Right now people don’t even walk into our stores, thinking English naam lag raha hai (this is a fancy sounding english name, not for us!), otherwise they would probably go to some Kesari travels, something more localised. We want to appear approachable.
H: Is tourism a margin play or volume play industry?
A: Earlier it was margin play, decent money, but now it has become very very competitive. Now the margins have decreased to some 5-7% which is very less compared to the transaction value that we do, so it has actually become largely volume play.
H: In the insurance sector, how do you manage to make people buy (life) insurance and get past the mental block that they don’t need insurance (because noone wants to believe they are going to die!)
A: People right now buy insurance but not for the right reasons, they buy it for tax saving reasons and just look at the short term benefits so they end up buying the wrong instruments.
Most people don’t understand finance and can’t understand how much they have to pay and what benefits they can get. So the end up buying from agents who they know – such as family friends.
We have installed this mechanism of calling back customers who have bought insurance from us from the center. This is because we don’t know how the agent sitting in say, Indore, has sold the insurance. Once the deal is locked we call the customer from our head office, and there is a central unit which does this, to rectify what the customer has been told, like a welcome call. Questions like “Do you know what policy you have bought?” “Do you know what you have bought it for?” are asked so we know if it has been missold or not. This is because misselling is very rampant in the industry, leading to lack of trust.
Misselling happens because everyone has to complete targets. You need something, but I might not actually sell you something that you need. I might sell you something that gives me more money. There are some policies that make more money, some have a higher commission as compared to others, so I might want to force sell those. This problem exists because of these freelance sellers, most of whom are not our employees, they work for multiple agents. Most companies are trying to solve this through such back checks. However it is still not optimal.
When we are recruiting we train them in a way that they do the financial probing correctly. In our forms we have questions asking if they have done proper probing or not. What does the customer need money for – retirement, children’s educations, children’s marriage? Once we have that financial information and the customer profile, we can have an idea whether what they have sold is correct or not. This isn’t foolproof but it gives us some assessment, some idea as a brand. It is important to sell the correct policy because if I sell the wrong one, the customer won’t renew it for a second year, which is when I will actually start making money. The company makes money only in the 3rd and 4th years, for the first 3 years we actually lose money.
H: Thank you for the insights! To conclude, would you like to give a message to marketing and advertising aspirants?
A: Just focus on understanding your consumer and the results will follow!
This article is part of our Colloquium’16 series (Marketing – Strategy, Science or Sorcery)