The Art of Trade Marketing | Insights from Devika Mahajan

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DJ: Hello everyone, my name is DJ, and welcome to this podcast series called Carrots and Stakes. In this series, I’ll be interviewing trade marketing leaders to learn from their experiences and hear their stories about building India’s top brands.

Today, I’m joined by DEVIKA Mahajan, who has extensive trade marketing experience with brands like Diageo and Bira 91. She’s here to share insights on best practices and her journey in the industry. Welcome, DEVIKA!

DEVIKA: Thank you, DJ. It’s great to be here.

DJ: How are you doing today?

DEVIKA: I’m good—feeling excited and a little nervous!

DJ: Shall we start?

DEVIKA: Absolutely!

Building Strong Relationships in Regulated Industries

DJ: Today, we’ll focus on the regulated industry, which includes sectors like tobacco and alcohol. My first question is about building strong relationships with channel partners like distributors and retailers. From your experience, what are the most critical elements of a successful partnership in a regulated industry like alcohol?

DEVIKA: Trust and ethical alignment are paramount when working with distributors, retailers, and wholesalers. Effective communication channels are also crucial. We need to share real-time information with our partners so they understand changes in consumer behavior, new regulatory norms, and our trade marketing plans.

Collaborative crisis management is another key aspect. For example, if there’s a sudden change in government policies or route-to-market strategies, we need to work with our partners to create alternative plans.

Additionally, we conduct training sessions for wholesalers, distributors, and retailers to ensure they have a deep understanding of our products. Retailers are our influencers in this market. When they’re knowledgeable, they can effectively promote our products to consumers.

We also align goals and incentivize retailers through joint business plans. These plans ensure a win-win situation for both the company and the retailer. For instance, we might run campaigns where retailers invest time and resources, and in return, we offer promotions or activations to boost sales.

Surviving and Thriving in Limited Shelf Space

DJ: Shelf space is always limited, and competition is intense. What are some effective ways a brand can survive and thrive without stepping into direct marketing, especially in a regulated industry like alcohol?

DEVIKA: Direct advertising of liquor is prohibited in India, so brands rely heavily on product differentiation. For example, packaging plays a huge role. Take Woodsman

Scotch—it has a unique bottle design with a mountain peak inside. Another example is Hapusa Gin, which is purple, unlike most gins.

Brands also focus on experiential marketing. For instance, Bacardi’s 7 Weekender music festivals created a legacy of experiential events that resonated with millennials. Similarly, Tuborg and Corona leveraged the sound of opening a bottle cap in their marketing campaigns.

These small but impactful tactics help brands build a connection with consumers without direct advertising.

Loyalty Programs and Incentivizing Customers

DJ: How do brands bring customers to retail outlets? Are there loyalty programs or specific tools to incentivize the supply chain?

DEVIKA: In metropolitan cities, we focus on activations and educating consumers about the product. For example, apps like Make Play allow users to scan bottle caps and earn points for rewards.

In tier 2 and tier 3 cities, we incentivize storekeepers through counter store manager (CSM) incentives. We also offer bundling or gift-with-purchase deals. For example, buying a case of liquor might come with free glasses or bar tools. In rural areas, we pair liquor with snack packs, as consumers often drink on the spot.

Positioning Premium Brands for Occasions

DJ: How do premium brands position themselves for occasions or gifting, especially in markets where consumers might not regularly purchase high-end products?

DEVIKA: Premium brands cater to aspirational value. For example, Johnny Walker hosts exclusive tasting and food-pairing events for a select group of influencers, celebrities, and loyal customers. These events create word-of-mouth credibility within niche circles.

Brands also leverage pop culture. For instance, Macallan saw a surge in popularity after being featured in the TV series Suits. This kind of positioning ensures that premium brands remain aspirational and exclusive.

The Role of Data in the Alcohol Industry

DJ: How does data play a role in such a complex and regulated supply chain?

DEVIKA: Collecting consumer data is challenging due to regulations, so we rely on sales data and shopper insights. Tools like Salesforce help us track sales volumes and analyze pre- and post-activation performance.

In states with government-controlled markets, data is more transparent. However, in distributor or wholesaler markets, we depend on inputs from partners. Building trust with these partners is crucial for accurate data collection and forecasting.

The Future of the Alcohol Industry

DJ: What does the future hold for the alcohol industry, and what trends have emerged in the past decade?

DEVIKA: Globally, the alcohol industry is worth 2.3 trillion, with India being the largest consumer of Scotch. By 2030, India’s alcohol market is expected to grow to 2.3trillion, with India being the largest consumer of Scotch. By 2030, India’s alcohol market is expected to grow to 64 billion.

Regulatory norms will continue to strengthen. For example, surrogate marketing has been replaced by brand extensions like Black & White Ginger Ale and Johnny Walker Soda. These products must follow strict guidelines, such as using different fonts and colors from the parent brand.

In the future, we’ll see more transparency and data-driven decision-making, both for brands and the government.

Closing Remarks

DJ: Thank you, DEVIKA, for sharing your insights and experiences. It’s been a pleasure having you on the podcast.

DEVIKA: Thank you, DJ. I had a great time. As Johnny Walker says, “Keep walking!”

DJ: Absolutely! Thank you, everyone, for tuning in. Stay tuned for more episodes of Carrots and Stakes.

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