A peek inside FMCG’s creative mood for this festive season

In recent years, when discussions about memorable festive ads come up, one ad consistently comes to mind: Cadbury’s ‘Not Just a Cadbury Ad’ featuring Shahrukh Khan. This wasn't just yet another commercial; it was a game-changer. By using AI, Cadbury turned SRK into the face of small businesses across India, creating a ripple effect that would influence festive marketing strategies for years to come. This ad didn’t just capture attention, it broke through the clutter of the massive Indian festive season, where countless brands vie for a slice of consumer attention.

As the festive season approaches, a familiar buzz fills the air, billboards light up, television screens are awash with colour, and social media brims with anticipation. For the Fast Moving Consumer Goods (FMCG) sector, this is the golden period, with industry estimates suggesting that 35-40% of annual sales are achieved during this time alone.

In this high-stakes environment, standing out is crucial. It's no longer enough for brands to rely on the same old festive tropes. Yet, many brands still fall back on tried-and-true templates, delivering ads that are predictable and, at times, forgettable.

So, how do brands achieve this in a market saturated with similar messages? The answer lies in the power of storytelling.

Prashant Gopalakrishnan, Founding Partner at Talented, known for its work with brands like Britannia and other FMCG brands, believes that this is the moment for brands to rise above the routine and deliver something truly special. 

"Bold ideas rarely emerge from conventional briefs. The festive season's advertising landscape has become predictable, with brands often repeating the same familiar themes. To stand out in a sea of sameness, we must challenge the status quo. Brands like Cadbury, with their iconic Shahrukh Khan campaign, have shown how culturally resonant and celebratory storytelling can elevate festive advertising," he observes.

Amid the need to stand out, there is also a growing call for brands to go beyond the usual festive tropes.

Gopalakrishnan is optimistic, predicting a wave of creative boldness. "I foresee a surge in creative audacity, with innovators either revolutionising the brief or transforming the way it's interpreted. The time for bold, game-changing ideas is now," he asserts.

This year, brands are focusing on storytelling that resonates on a personal level. Hyper-personalized campaigns and narratives that tap into nostalgia, family traditions, and cultural festivities are taking centre stage. 

"Our festive campaigns will feature effective storytelling, tapping into nostalgia, family traditions, and cultural festivities, building brand affinity and loyalty," shares Somasree Bose Awasthi, CMO, Marico Limited, highlighting the strategic plans to connect with consumers on an emotional level.

AI’s role in festive storytelling 

After Cadbury's 'Not Just a Cadbury Ad’ set a new benchmark for festive AI campaigns, brands quickly embraced artificial intelligence to make their mark during the holiday season. 

Last year, personalisation took centre stage as brands sought to break through the ‘festive greetings’ clutter. Coca-Cola’s approach to Diwali stood out as a prime example. With its Create Real Magic initiative, Coca-Cola broke away from conventional Diwali campaigns, offering a microsite where consumers could send personalised greetings, far from the usual recycled WhatsApp messages.

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While these advancements opened doors to a new era for both brands and consumers, consumer sentiment around AI has become more complex.

On one hand, AI has been embraced as a useful tool, with 30% of conversations focusing on its potential as a festive planner. On the other hand, there’s growing scepticism, evidenced by an 189% increase in negative memes about AI and a 629% spike in discussions about identifying AI-generated content. This shift in sentiment suggests that while AI has opened new doors, it has also raised concerns about the authenticity of digital information. Consumers are increasingly asking, "Is it safe or sus?"

Sumeer Mathur, Chief Strategy Officer at Dentsu Creative India, an agency known for its work with FMCG brands like McCain Foods, notes that the initial excitement around AI is waning.

“AI is tech; the days of getting attention purely through its use are now over, as the novelty wears off. Brands would do well to use AI to bring their ideas and messages alive,” he advises.

Despite the mixed feelings, brands are cautious about fully integrating AI into their marketing strategies. Poulomi Roy, CMO of Joy Personal Care (RSH Global) explains, “At present, we are not focusing on AI for our marketing activities. However, we remain open to exploring its potential in the future as it evolves and as we identify opportunities where it could enhance our strategies.”

On the flip side, other brands are already harnessing AI’s capabilities on an operational level to optimise their marketing efforts. Awasthi shares how they are leveraging AI tools like ChatGPT, Bedrock, and Gemini to stay competitive. 

“By integrating tools like these, we monitor key metrics in real-time, quickly identify adjustments in campaigns, and optimise our marketing actions,” she says. 

As brands navigate this evolving landscape, the key will be to balance AI’s power with the growing demand for authenticity. Those who can use AI to enhance their messaging, rather than just as a novelty, will likely be the ones who stand out this festive season. 

Ads to cater to Tier II and III 

Traditionally, festive campaigns have zeroed in on major metropolitan cities, but this year, the spotlight is shifting. An anticipated revival in rural demand is encouraging brands to weave more tier II and III stories into their narratives.

Take, for instance, JK Cement’s Diwali ad from last year. The ad told the heartfelt story of a painter, working in a bustling Tier I city, who makes the journey back to his hometown to celebrate Diwali with his family. It was a reflection of a growing trend, brands recognising the emotional and economic potential of smaller towns and rural areas.

Tier II and III cities are emerging as key growth areas for the FMCG sector in India. In 2022, tier II and III areas added $195 billion to India’s retail industry, while rural regions contributed a significant $530 billion. The festive season presents a unique opportunity for brands to connect with consumers in these markets.

“Festive briefs leverage an important sales period for brands while also offering an opportunity to create a deeper connection with the consumers through region-specific insights,” says Mathur, echoing the importance of reaching beyond the metros.

On top of this growing importance of regional markets, consumer sentiment has been positive in Tier II and III cities following a steady monsoon. With this, experts predict a high purchasing power emerging from these regions.

"The sentiment in the FMCG sector for the upcoming festive season is largely optimistic. Stabilising inflation and improving rural markets are contributing to an overall positive economic outlook. This has resulted in increased consumer confidence, with both urban and rural segments expected to enhance their spending during the festive period,” shares Roy.   

As the market sentiment improves, it is also influencing Joy Personal Care’s marketing approach. 

Poulomi Roy further highlighted how Joy Personal Care is tapping into these markets as part of its year-round strategy.

“We focus on tier II and III cities as part of our media strategy throughout the year to achieve the best results. For the upcoming festive season, we will continue to execute our annual plan, ensuring these markets are effectively covered with targeted campaigns and initiatives. We plan to maintain our current marketing budget allocation for this festive season without additional spending,” she explains.

Neha Rao, Vice President of Marketing at Bikaji Foods International Limited says, "Bikaji enjoys a strong brand connect and recall across Tier 2 & 3 cities, making them a key focus in our marketing efforts. To effectively connect with these markets, we employ a strategic mix of media channels, including a strong emphasis on vernacular media for regional reach. This approach ensures our messaging resonates deeply with local audiences."

In a season where every brand is vying for attention, the ones that take the time to tell a meaningful story and reach out to every corner of the country will be the ones that truly connect with consumers.

Marico’s increased marketing budget and focus on storytelling reflects this shift. 

“Our efforts towards delivering memorable experiences is our increased advertising spends in both traditional and digital platforms, which rose by 13% in FY24. As we approach the festive season, we expect a consumption recovery and remain committed to responsible and agile marketing practices that drive maximum impact and value,” Awasthi tells Social Samosa. 

As the festive season approaches, the FMCG sector is gearing up for a crucial period of growth. Brands are focused not just on boosting sales but on building deeper connections with consumers across the country. Whether in major metros or tier II and III cities, the emphasis is on personalised, region-specific storytelling that resonates with diverse audiences.

With the festive lights brightening and anticipation building, FMCG brands have the opportunity to lead, creating lasting impressions that extend beyond the season.