70% of our budget will be dedicated towards brand-building initiatives: Pratik Mazumder of Club Mahindra

The hospitality industry in India has a market size estimated at USD 247.31 billion in 2024, and is expected to reach USD 475.37 billion by 2029, growing at a CAGR of 13.96% during the forecast period (2024-2029).

According to the 'Vision 2047: Indian Hotel Industry' report released by the Hotel Association of India (HAI), the hotel industry directly contributed USD 40 billion to the GDP in 2022. Projections indicate that this figure is anticipated to ascend to USD 68 billion by 2027. Furthermore, it suggests that by the year 2047, the industry's contribution to India’s GDP is anticipated to soar to approximately USD 1 trillion. 

The rise in disposable income among people living in the upper-tier cities has led to increased spending on leisure and travel. To capitalise on this growing market, hospitality brands have started putting in more resources into marketing and advertising. And with a plethora of consumers migrating to digital, social media has become an integral part of the marketing mix of brands. 

Pratik Mazumder, Chief Marketing Officer of Mahindra Holidays & Resorts India Limited (MHRIL), shares insights into Club Mahindra's marketing strategies and objectives in an interview with Social Samosa. He highlights key campaigns such as #HappyHolidaysHappyFamilies and #FamilyKiSuperWoman, emphasising their role in establishing Club Mahindra as a leader in family vacations. Mazumder discusses the brand's larger marketing objectives, target audience segmentation, and personalized marketing efforts driven by data analysis. He also sheds light on the media plan, allocation of marketing budgets, and expected trends in the travel industry for 2024. Moreover, Mazumder outlines essential skills for CMOs in the evolving marketing landscape and the brand's strategies for leveraging social media, emerging technologies, and key events like IPL. 

Edited Excerpts: 

Can you walk us through a few marketing highlights that Club Mahindra has seen in India? A few key campaigns that have helped Club Mahindra establish itself as a key player.

Over the years, Club Mahindra has executed several marketing campaigns that strongly resonated with our audience. To highlight a few: the #HappyHolidaysHappyFamilies campaign, launched during the Asia Cup, aimed to emphasize the joy and togetherness experienced by families and children during their holidays with Club Mahindra. Another successful campaign was #FamilyKiSuperWoman, featuring Raveena Tandon. Siddharth Malhotra stars in the Club Mahindra campaign "Jaana Kahaan Hai," encouraging people to travel and explore Club Mahindra properties while celebrating the multitasking abilities of mothers and their key role in family vacations. These campaigns have played a pivotal role in cementing Club Mahindra's position as an enabler of family vacations.

What is your larger marketing objective now that you have established your presence on various channels?

Our brand purpose, centered on creating wonderful holiday experiences, serves as our larger marketing goal. To connect with the right audience—families inclined towards purchasing a Club Mahindra membership—we remain steadfast in enhancing the holiday experience for our customers. Our commitment extends to inspiring them to construct magical moments with their loved ones. With over 100 resorts offering 2000+ unique experiences, we provide unparalleled holiday adventures to our esteemed member base. Our focus is on captivating members with the diverse wonders of India. 

Who is your target audience? Are there niche markets you are focusing on in 2024?

We've segmented our target audience into distinct categories to better tailor our offerings. These include Value Seekers: individuals seeking breaks from routine; Affluent Convenience Seekers: who desire hassle-free holidays and top-notch experiences; and Experience Seekers: adventurous souls in search of new destinations and experiences. Accordingly, our products like CMH 25/15/10 year membership, Bliss (10-year membership for 50+ year olds) and Go Zest (3 year membership) are perfectly aligned to meet the needs of these categories. Our primary focus remains on the top 20 markets, encompassing both tier 1 and tier 2 cities.

How are you leveraging data and personalization to tailor marketing messages and offers to individual members' needs and preferences?

Data has benefited brands immensely. With personalized data available at the fingertips, brands are harnessing the potential with the right inputs to curate customized messaging. At Club Mahindra, data forms a crucial part of our marketing strategy. Our deep analysis of our members' holidaying behaviour, purchase patterns, offer preferences as well as referral sharing has allowed us to create highly personalized targeting. This helps us share the right offers at the optimum time and helps increase uptake.

Can you tell us a bit about your media plan and the reason behind your selection of mediums? 

We are focusing on both traditional above the line (ATL) and digital marketing strategies with leading platforms to develop intellectual properties that drive brand awareness and salience. Our strategy also involves the creation of compelling content that highlights the experiences provided by MHRIL for our members.

Where and how do you think the marketing industry will spend its marketing budget in 2024? 

In 2024, we will plan our budgets strategically. A substantial portion, around 70% will be dedicated towards brand-building initiatives, fostering long-term brand equity and loyalty. This allocation will encompass various leading channels & properties, also social media, websites, Brand Ips & events, to create a strong brand identity and resonance with our audience. The remaining 30% of the budget will be allocated to core digital efforts to enhance the top of the funnel and improving overall Consumer experience, ensuring a balanced approach to driving immediate results while nurturing brand strength for sustained success. Brand building is integral to shaping how our company is perceived and connects with consumers, making it a crucial component of our marketing strategy for the future.

How is the travel industry expected to perform in 2024? Based on that, how do you think the industry will contribute to Ad Ex this year? 

The tourism and hospitality sector has witnessed diverse trends such as the rise of staycations, leisurely exploration, environmentally conscious journeys, weekend getaways, and a heightened focus on sustainability, all expected to drive substantial growth in 2024. Additionally, Timeshare has gained momentum as an emerging travel trend, offering travellers a home-like environment, cost-effectiveness, and flexibility in exploring various destinations. Furthermore, the government's effort in promoting tourism in India will bolster the domestic travel trend, contributing significantly to the sector’s overall growth and development. 

With this, the skills expected from a CMO are also changing. What are some must-have skills for CMOs in 2024?

In a fast-paced evolving marketing scenario, CMOs must possess to lead diverse marketing teams, adept communication proficiency for effectively articulating strategies, mastery of storytelling to construct compelling brand narratives, a robust emphasis on customer-centric approaches to elevate user experiences, and proficiency in big data analysis to drive informed decision-making.

IPL is a money-spinner property. Is your brand planning to spend on it? Any other key events (sports, elections or otherwise) that will get your brand's attention this year? 

As these events drive reach and viewership, we are open to exploring these opportunities.

Are there specific technologies or trends (e.g., AI, AR, and VR) that you believe will significantly affect your marketing strategy & budgets this year? 

We are always keen to integrate new technologies in our marketing strategies. For instance, last year our #MeetTheRealSanta campaign leveraged AI to send personalized messages from Santa Claus to children and their families, enhancing engagement and brand connection. Additionally, our limited-edition NFT series, inspired by AI-generated digital artworks, displayed our innovative approach to leveraging technology in marketing. These initiatives reflect our commitment to staying at the forefront of technological trends to enhance customer experiences and drive brand growth.

What key marketing tips do you have for navigating the challenges and opportunities in 2024 in terms of planning the marketing spends? 

In navigating the marketing landscape of 2024, brands must prioritize digital transformation by allocating significant budgets to digital channels like social media and SEO. Leveraging data-driven insights will be crucial for optimizing campaigns and understanding consumer behaviour. Personalized marketing initiatives should be emphasized to enhance engagement and conversion rates. Additionally, focusing on delivering exceptional customer experiences will help in breaking the clutter in a competitive market. Remaining agile and adaptive throughout the year will be essential for responding effectively to unforeseen challenges and opportunities.

A lot of brands focus extensively on social media leveraging different ways such as reels, influencer collabs, etc. to target a younger demographic. What things have you planned to amplify your social media presence in this year? 

To boost our social media presence and engage with our target audience effectively, especially to attract new members, we are implementing various strategies. This includes leveraging emerging formats like reels, stories, and interactive posts for engaging content. We are also collaborating with influencers and content creators organically and through partnerships to expand our reach and credibility. Additionally, we are investing in social media advertising to amplify our brand messaging and drive targeted traffic. Fostering meaningful interactions with followers and encouraging user-generated content are also key focuses to building a loyal and engaged online community for our brand.