Selling Mr Modi

Did the campaign draw inspiration from corporate marketing or should companies learn from his strategies?

By Mohan Sule

The recent election to the Lok Sabha was remarkable in many ways. First, the campaign was turned into a referendum on an opposition leader rather than on the ruling party. Second was the combining of non-traditional platforms such as social media with the old fashion way of logging miles. Third was the strategy of tarring rivals. The question at hindsight is if political parties drew lessons from companies’ marketing tactics or is there a lesson for Corporate India in the way the war rooms were analyzing ground-level feedback and organizing logistics for an intricate schedule of rallies across the country? Many inferences can be drawn from the successful culmination of Narendra Modi’s journey to prime minister. First, a product’s local fame can be leveraged nationally with good marketing. Amul has become a pan India brand from being a Made-in-Gujarat variety due to its superior distribution network. However, mass selling should not diffuse product differentiation. This is the second lesson. In a country where politicians prefer the easy way of emotive appeal of religion and caste, Modi propagated development to stand apart. This approach works if it is backed by user experience. Reports suggest that the Modi wave in north India was not just a by-product of hype but also the result of testimonials of migrants from this region about the opportunities and uninterrupted power supply in Gujarat.

Actions, rather than words, reinforce an image is the third lesson. In their bid to blunt Modi’s talked-about administrative acumen, opponents used comparative advertising to show that other states were better on some social indicators. Indirectly, the debate ensured that the Gujarat model remained in the news. For the young voters hungry for jobs, the uniqueness was that Modi welcomed business investment. The contrast became stark against the backdrop of huge projects getting stuck for want of environmental clearances even as the UPA government was spending on giveaways. Modi demonstrated decisiveness when he quickly seized the opportunity presented by the agitating farmers of Singur, West Bengal, by welcoming Tatas’ Nano project. On the other hand, Rahul Gandhi’s pro-tribal stand on the troubled Posco mining project in Orissa strengthened the perception that he preferred populist posturing. While assigning valuations to stocks, the market, too, takes into account management credibility. Infrastructure companies are viewed with caution due to their dependence on government contracts. Technology and pharma companies get better discounting as they cater to the fussy developed markets. Similarly, a stock showing a sudden spurt in prices raises suspicion. While Modi’s more than 10-year track record as chief minister of Gujarat could be examined and debated, Rahul was thrust as a fresh face that the country should rely on. The hitch was that the electorate viewed him as part of the problem rather than the solution. After his criticism resulted in the withdrawal of the ordinance that would have allowed convicted politicians to contest polls, he could no longer position himself as an outsider. Voters read his inaction for most of the decade-long UPA rule either as indifference to the policy paralysis or as covert support to various ministers’ acts of omission and commission. The fourth lesson, therefore, is that consumers are open to experiment with innovations but not those merely packaged as new.

The message has to be tailored to the market. When HUL was blindsided by low-end Nirma washing powder, the leader in the premium segment hit back with its own cheaper brands. Similarly, the FMCG sector’s experiment with sachets for the small and rural users has turned out be a roaring success. Starting off with the development agenda in urban and semi-urban areas in the first half of the long election schedule, Modi switched track to his humble beginning as a tea seller. The fifth lesson is widely practised in the consumer durables segment. Automobile manufacturers produce a range of vehicles for the premium segment and the common man. The last lesson is that running down competitors should be based on facts that are not open to any other interpretation. Harping on Modi’s largesse of giving land cheaply to the Adani group did not resonate among educated urban voters who knew that the price of an immovable asset depends on its location. So the alleged setback to the exchequer on this account was not comparable with the revenue loss suffered due to selling telecom spectrum and coal blocks to cronies at throwaway prices. In fact, Rahul’s attempt to provoke outrage boomeranged as it triggered association with his brother-in-law’s dealings in real estate. In the end, it is sometimes better to sacrifice the pawns rather than expose the Queen by rash moves.