‘Beating the odds’ in COVID - 19 Innovative responses from consumer brands 25 August 2020 Confidential and proprietary © Praxian Global Pvt. Ltd.
Objectives of the study Highlight innovative Identify trends in Reflect on themes of responses by consumer behavior innovation and consumer brands to driving innovation opportunities for the pandemic consumer brands © PGA Labs | 2
Key takeaways ● Consumer brands have responded to the COVID - 19 pandemic by innovating across four different business axes – product, operations, marketing, and customer experience ● Agile companies changed their ingredient mix in response to consumer demand for health - oriented products ● Expansion into adjacent offerings and creation of new product categories has helped cater to changed consumer lifestyle ● Innovators followed their customers and implemented new touchpoints across channels ● Organizations narrowed their focus to core products and repurposed existing resources to “d o more with less” ● Innovative companies showed more empathy in their communications and built brand equity ● First movers adopted digital technology and tools to create safe, seamless and, enjoyable experiences © PGA Labs | 3
Four axes of innovation: product, operations, marketing, and customer experience Product Operations 1 Products for the season Tele - assisted shopping 1 2 New category and consumer needs Collaborative selling 2 3 New ‘capability’ adjacencies 3 Experience on wheels 4 New service formats: DIY kits 4 Direct to consumer channels 5 Fill product whitespaces 5 Community selling 6 Process optimization 7 Become inclusive Customer experience Marketing 1 1 Re - designed Zero contact shopping Solution selling: Product bundling 2 2 Virtual after - sales service Sharp, relevant communication 3 Re - communicate the digital proposition Brands featured in the report © PGA Labs | 4
“A piece added or replaced to the product can change it’s entire purpose” Product innovation
Tweak ingredients to Create new product Expand offerings to meet the demand for categories based on cater to changed immunity boosting altered customer customer lifestyle products needs
Product innovation Products for the season: Packaged food companies using immunity - boosting 1 ingredients to meet consumer need for healthier options Health and wellness Breakfast mixes and Ready - to - drink Instant mixes supplements cereals Turmeric and aloe Turmeric shots for Immunity capsules Turmeric breakfast juices instant turmeric latte cereal ** Turmeric flavoured Infusion tea bags Ayurvedic Tulsi Immuno bread with milk drops turmeric, ginger, etc Turmeric protein ACE and Heart powder ** Smart drinks Note: ** is sold internationally © PGA Labs | 7
Product innovation Products for the season: Acquiring new customers and up - selling to existing to 1 cover the immediate need to cover short term health risks Other brands with similar offerings Launched shorter - term, lower priced insurance policy for customers looking for COVID - 19 protection © PGA Labs | 8
Product innovation New category formation from changing needs: Creating a new product category 2 (masks in fashion) catering to a new customer need Medical / functional Formal wear Active wear Luxury / Designer © PGA Labs | 9
Product innovation Expansion into ‘capability’ adjacencies: Expanding product lines and services 3 based on altered consumer lifestyles Added 2W rentals to cater to demand for Magicpin started deliveries of groceries Launched ‘ Awfis@Home ’ with a private transportation and food from local stores subscription model for WFH infrastructure © PGA Labs | 10
Product innovation New service formats: Food service brands are diversifying into alternate formats 4 (DIY meal kits) to provide customers with the same experience Other brands with similar offerings 2,000+ bottles sold within one month © PGA Labs | 11
Product innovation New service formats: Out - of - the - box service delivery while also demonstrating 4 empathy Free of cost service for arranging 1 weddings virtually Innovative solution for people 2 struggling to postpone their wedding 3 Users can select wedding related vendors, share e - invite and get a free wedding video Received widespread positive social 4 and media coverage © PGA Labs | 12
Product innovation Fill product whitespaces: Digital media players have innovated rapidly 5 Other brands with similar offerings Launched Launched a short video app within 7 days of ban on TikTok Moj Launched MX Taka Tak Launched 28M+ HotShots downloads In 45 days © PGA Labs | 13
Product innovation Fill product whitespaces: Brands rushed to fulfil demand for hygiene products 5 Other brands with similar offerings Launched hand and surface sanitizers to consolidate portfolio in the hygiene space © PGA Labs | 14
"Opportunities don't happen, you create them" Operational innovations
Reach customers Do more with less Collaborate with other through new channels resources through organizations to to serve them during community and group navigate the crisis tough times selling
Operational innovation Tele - call assisted shopping: Telephonic shopping for the less tech - savvy 1 1 Omni - channel experience for the non - tech savvy 2 Salespeople at Big Bazaar turned into distant shopping assistants preparing orders 10,000 250 stores operationalized orders a day © PGA Labs | 17
Operational innovation Collaborative selling: Creating reach and availability across channels through 2 partnerships Partnership with Blue Tokai for sales on online platform Wingreens listed on hyperlocal players including Swiggy , Zomato © PGA Labs | 18
Operational innovation Experience on wheels: Brands are taking the experience where the customers are 3 Mobile shops in customer neighborhood offering ITC employed food trucks to act as mobiles stores and doorstep trials and alteration through nearby stores reach customers in their apartment complexes © PGA Labs | 19
Operational innovation Direct to consumer channels: Strengthening own channels to build loyalty 4 1 Shift from MT retail to direct to consumer through own website 2 Focus on core, loyal customers 3 20 - 30% savings on commissions and retailer margins 20,000+ Other brands with similar offerings online orders since May © PGA Labs | 20
Operational innovation Community selling: Maintaining availability 5 Community selling through tie - ups with apartment Launched ‘Trust Shop 2.0’ for deliveries at residential complexes complexes without any payments Optimized visits to an apartment complex Unmanned vending Trusts customers to make payment via machines e - wallets later 3 – 4 ~3 Visits a day Visits a week © PGA Labs | 21
Operational innovation Process optimization: Operational excellence for safety of customers, and delivery 6 personnel 1 Introduction of contactless deliveries Old assignment system 2 Switched to just - in - time model for assignment of delivery partners 3 Reduction in queues and crowding at restaurant partners New assignment system 25% Reduction in wait time for delivery partners © PGA Labs | 22
Operational innovation Becoming inclusive: Providing access to services in remote locations 7 Facilitated withdrawal of DBT funds and cash through its Expanded hyper local discovery and purchase platform network of banking correspondents ‘ BuyNearby ’ to pan - India operations 8.5 lakh >2 lakh Transactions per day kiranas equipped with online services © PGA Labs | 23
“Marketing is no longer about the stuff that you make, but about the stories you tell” Marketing and promotions
Tailor offerings and Build lasting brand Change marketing communication to equity through messages based on address new customer empathy and consumer preferences segments thoughtfulness
Marketing innovation Solution selling: Bundling similar products to target customer need holistically 1 Other brands with similar offerings Launched 'Immunity Kit’ containing ayurvedic formulations like Chyawanprash , Giloy Ghanvati and others © PGA Labs | 26
Marketing innovation Sharp, relevant communication: Renewed focus on health and hygiene benefits of 2 products Educating customers on the need for a Ensuring sanitized and safe installation at #StaySafeWithSleepwell campaign hygienic mattress and neem fresche the doorstep emphasizing health benefits of sleep © PGA Labs | 27
Marketing innovation Re - communicate the digital proposition: Leveraging conversational AI bots to focus 3 on educating customers on digital products Conversational marketing on social media and 1 digital channels 2 Dedicated campaign focusing on new internet banking features like account opening 500k+ new conversations on messenger bot © PGA Labs | 28
“People will forget what you did, but people will never forget how you made them feel” Customer experience
Adopt digital Enable after - sales technology to create Build trust and service through safe, seamless and, confidence with the channels and self - enjoyable shopping customer service channels experiences
Customer experience innovation Re - designed zero contact shopping experience: Allowing safe, technology enabled 1 shopping experience without modifying customer behavior “Scan & Go” app to ensure contactless shopping and “Reserve and Collect” allowing customers to purchase payments in - store online and pick - up from the store without any delay Scan the product you like Review your purchase Collect your baggage or want to buy summary and pay online with digital receipt © PGA Labs | 31
Customer experience innovation Virtual after - sales service: Remote support, live chat option, technical assistance 2 through call center and do - it - yourself (DIY) videos Whatsapp’s live chat support to DIY videos on social media for self - On - call technical assistance to avoid identify the issues and troubleshoot maintenance of the appliances the limited crowd at service centers © PGA Labs | 32
Closing thoughts: Four axes of innovation Product Operations 1 Products for the season Tele - assisted shopping 1 2 New category and consumer needs Collaborative selling 2 3 New ‘capability’ adjacencies 3 Experience on wheels 4 New service formats: DIY kits 4 Direct to consumer channels 5 Fill product whitespaces 5 Community selling 6 Process optimization 7 Become inclusive Customer experience Marketing 1 1 Re - designed Zero contact shopping Solution selling: Product bundling 2 2 Virtual after - sales service Sharp, relevant communication 3 Re - communicate the digital proposition Brands featured in the report © PGA Labs | 33
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