Many AMCs are running TV commercials about SIPs. How are you trying to convey the same message differently through your ads?
We did some consumer research in metros and tier I & II towns and discovered that the earlier generation believes that a good life has to be ‘earned’ through hard work and it is up to fate to decide how successful they become while this ‘optimistic younger generation’ believes that they ‘deserve’ a good life.
However, youngsters find it challenging to meet today’s needs and tomorrow’s goals. They have to compromise on their dreams and promises made to their loved ones and we felt that this gap could be filled by mutual funds.
The commercial highlights that you can achieve your dreams faster if you invest in equity mutual funds through SIP route.
What is the message you are trying to convey through your latest ads?
The two advertisements - Holiday and Watch juxtapose the traditional method of saving/investment versus benefits of creating wealth through mutual funds to help you reach your goals faster. It is targeted at youngsters who have joined the work force in the last 2-5 years.
Your latest ads seems to suggest that wealth can be created over a shorter period of time. Do you think investors will view mutual funds as short term products?
We were conscious of this while creating these advertisements. Thus, we have deliberately showed ‘short term goals’ with a time horizon of 4-5 years which we believe is good enough for people to invest in mutual funds and experience its benefits.
The issue is that our target audience sees long term as a series of short term goals. They put aside any thoughts of investing in MFs if we talk about life stage goals. Thus, we wanted to seed the relevance of mutual funds among the audience without overpromising. This doesn’t necessarily means that equity mutual funds can deliver in 1-2 year horizon. Through these ads we want to grow the MF category and encourage youngsters to experience mutual funds. More often than not, once you experience the benefits of mutual funds you are set for the long term.
Which is your target audience?
The target audience is 20-30 years old who have joined the work force recently.
In how many languages and TV channels will these advertisements be aired?
These ads have been made in eight languages. We are going to use over 30 channels which have a mix of all genres, including regional channels.
Most mutual fund advertisements do not enjoy a good recall. What do you think are the challenges in communicating about mutual funds?
If you put it in context, financial services are less than 5-7% of the total ad spends. Mutual funds is just about 10% of financial services spends. So our share of voice is less than 0.5% in the advertising context. We do not invest enough in investor communication as the category is intermediated.
I think the business model of most AMCs are similar. They all are talking to everyone. Hence, in the consumer’s mind, there is very little differentiation. Also, not enough messages are going to consumers about the MF category, its role and benefits.
Besides, we have stringent regulations on how and what can we can communicate and that puts stress on our creative abilities. It is not a level playing field within the financial services space. A bank, insurance firm or a distributor can say a lot things, compare products etc. which AMCs cannot.
There is no immediate gratification after investing in mutual funds; all the benefits are derived in future, which adds a layer of complexity.
Also, we have to simplify the message by striking a balance between being not considered frivolous and be serious enough to shape consumer behaviour. If advertisements do not touch the heart they will not stick.
What new initiatives have you undertaken in your Swatantra campaign?
We have partnered with One India Plus to launch our investor education initiative Swatantra in print. Eight leading national, business and regional newspapers viz. Hindustan Times, Hindustan, Mint, Anand Bazar Patrika, The Telegraph, The Hindu, The Hindu Business Line and Sakal have come together to extend their platform to help educate investors across the country through fortnightly series of ‘Swatantra’ articles.
In addition to this, our radio (Radio One) and TV (ET Now) has added teeth to the campaign. In these shows, we showcase thought leaders and discuss various topics of audience interest to create engagement. The same piece is also digitally leveraged and converges at beswatantra.com which is our investor education website. This is being refreshed and updated.
All these efforts are amplified by our on-ground engagement through our UFC (UTI financial centre) and Business Development network in the districts.
