With going local being the flavour of the season, the FMCG industry is shifting focus at regional expansion and drawing a good number of brands is Tamil Nadu. Known for its unique culture, traditions and high consumerism, the state has fast become a focal marketing target for brands in the retail and consumer goods space.
As per Indian Brand Equity Foundation’s recent surveys, Tamil Nadu’s gross state domestic product (GSDP) for 2022-23 is estimated to be Rs 24.85 trillion (US$ 320.27 billion). This has got brands to take a closer look at the state.
Industry experts say Tamil Nadu has tremendous growth opportunities and offers brands ample business opportunities.
‘A state full of hope’
Last month, Cadbury Oreo played on the old fan rivalry between Tamil superstars Ajit and Vijay and came up with a contest #ThalaThalapathyOreoCookies. Similarly, Britannia’s Milk Bikis re-launched its classic biscuits with Tamil nicknames and launched a campaign to celebrate their long bond with the state.
According to Nitin Saini, Vice-President – Marketing, Mondelez India, Tamil Nadu is a highly penetrated premium creme biscuits market and is priority state for the Oreo brand. “Given that it’s a state with a strong sense of self-identity and a unique culture, our strategy to capture this high-growth market is to leverage the cultural understanding through relevant occasions that strongly resonate with the consumers, and shape campaigns that build affinity and consideration for Oreo in the market. Oreo’s recent activation during Pongal leveraged the passionate hero worship that prevails in Tamil cinema, which has managed to break the clutter during the festive season.”
Sharing the retail market’s perspective was Suman Saha, CEO, Arrow, who believes the FMCG market in Tamil Nadu has tremendous growth opportunities owing to rapid industrialization of the state. “The state is one of the major producers of agro-products like tea, coffee, sandalwood, cashew, coconut and spices and rice, which have facilitated the growth of the food industry. Tamil Nadu also has a number of important cities like Chennai, Coimbatore, Sivakasi, Trichy, Erode, Kodaikanal and Ooty, which have made great developments over the period of time.”
According to Saha, the apparel industry is seeing a number of new companies, giving regional consumers lot of choices. “As Tamil Nadu is a growing market, there are an array of companies catering to consumers who are now more conscious and aware of product quality. Even brands are producing premium products and evolving. The state is considered as one of the richest states in India, so needless to say, the buying patterns will be high. Hence, there is an innate potential and ability for premium products to flourish in this market. This is why many retail outlets are prospering in the state."
Explaining why Tamil Nadu is a top market for various FMCG segments too, Alamjit Singh Sekhon, Commercial Director of Bel India says, "Tamil Nadu has always been an important market for most companies for a few years now. TN has the 2nd highest GSDP among all states in India. It has a strong manufacturing sector with leadership positions in many industries. It is also one of the most urbanized states with 48% urban population. The state has good infrastructure in place and was one of the 1st states to have 100% metalled road connectivity. It ranks among the top 5 for many FMCG categories. Even in dairy, it's among the top 3 in organized liquid milk, curd, butter and buttermilk. For companies and brands, the media landscape makes it possible to geo-target the consumers in TN. This makes it one of the top states to test the marketing mix and figure out the acceptance of a new launch.”
Marketing methods for the Tamil consumers
Sekhon lists ways in which brands should progress towards building a connection with the people of Tamil Nadu. “To succeed in the TN market, brands need to understand the consumer and the cultural context. Tamil communication is a must to create good awareness; it's not always necessary to have an altogether new ad shot for TN as long as the cultural cues are respected. Only in specific cases where brand ambassadors are used, it's important to have a separate Tamil edit with a celebrity who is relatable for the consumers in TN."
As for Shahir Muneer, Founder and Director of Divo, there is a lot of potential in influencer marketing to reach the regional audience. “Brands today understand they need to go beyond their national campaigns and customise to reach their target markets. From a digital perspective, Divo has been a part of some of the digital and influencer campaigns for few of the FMCG brands ran in Tamil Nadu especially, in the just concluded Pongal festival.”
Digital content and influencers help in amplifying a campaign, Muneer notes. “And unlike a typical influencer marketing campaign, with just some creators talking about a product, there is a lot of emphasis on creative and brand solutions. Celebs and macro and mid-tier creators enable reach among a large set of audience.”
