Hyper-personalised content backed by predictive analytics, promises to redefine A&M approaches: Swati Rathi

AI’s rise and prominence in advertising and marketing has brought the industry on the precipice of a significant change. AI stands poised as a formidable force set to reshape industries in the years to come. The appliance industry has not also remained untouched by this disruptive technology, and Godrej Appliance has started seeing its influence. Currently, Smart IoT-enabled appliances represent a tangible manifestation of this transformation, with further use cases expected to unfold. 

In the realm of marketing, AI-driven communication automation emerges as a pivotal tool, promising to significantly enhance efficiency, agility, and innovation within the field.  

Swati Rathi, the Head of Marketing at Godrej Appliances, reflects on her 18-year journey at the company and the evolution of marketing in the appliance industry. She emphasizes the significant impact of digital transformation on consumer behavior and marketing strategies. Looking ahead, she anticipates AI to revolutionize advertising and marketing operations, with a focus on personalization and efficiency. And when it comes to selecting agency partners, she values insights, an understanding of brand space, and a willingness to experiment with AI.

Rathi, who is also a juror for Social Samosa's AgenyCon 2024, further highlights Godrej's focus on product innovation, sustainability, and meaningful consumer experiences as key drivers of success. She also addresses the importance of gender-inclusive advertising and predicts trends in home appliance marketing, emphasizing premium categories, digital focus, and localized targeting.

Edited Excerpts: 

Having been at Godrej for 18 years, how has the overall journey been for you as a professional? How have you seen marketing evolve over the years?

My tenure at Godrej has been extremely enriching. From being a large-appliances company, which was heavily refrigerator-focused, to becoming a strong multi-category company across Air Conditioners, Washing Machines, Refrigerators to Air Coolers, Dishwashers, Deep Freezers, Medical Refrigerators, etc, the company is very different from when I had joined. The appliance industry has also shifted manifold – the retail landscape has evolved a lot, and one only needs to step into an appliance store to witness the transformation. The consumer has changed – with easy EMIs, early homes, younger consumers, and more. If one must pick, as a marketer, digital has been the single most impactful shift.

Durables is a very interesting category. The long gestation period between product conceptualization to launch and again from purchase trigger to actual purchase has strong implications on how marketing works in the category. Given the consumer’s need to research and purchase, digital has played a key role. From e-commerce to YouTube to Influencers on social media – all these mediums are part and parcel of a consumer's durable purchase journey. Video consumption has been a game changer in how marketing operations work, coupled with WhatsApp, the implication being that at any moment, the volume of marketing content being generated and consumed is unprecedented. We now anticipate the future shift is going to be led by generative AI – as we are headed into a very fast-changing world with a lot of unknowns.

AI is emerging as a significant disruptive force, how do you see it changing the industry in the coming years? What innovations are you planning to adopt into your marketing strategies?

AI is becoming a powerful force that will reshape all industries in the coming years. At the product level, Smart IoT-enabled appliances are already available, but new use cases will emerge. As far as marketing function is concerned, communication automation with AI will play a very significant role in driving efficiency, agility, and innovation.

The first wave of AI in advertising saw a focus on personalization and deepfake on an industry level. What do you think the next wave of AI will focus on in advertising and marketing?

For any new technology, there will be new unknowns to deal with. In the case of AI the unknowns are of a different proportion. Deepfakes lending to the risk of cyber frauds are on the rise. With digital transactions booming on one hand and easy reach via social media , the risk – both economic and the risk to reputation is much higher. 

It is difficult to predict – but hyper-personalized content backed by predictive analytics may hold the keys going forward. This intersection promises to redefine advertising and marketing approaches, offering innovative and tailored experiences for consumers. But if we overlay this with the growing regulations around consumer consent and privacy, we get a new marketing challenge to deal with! The other expectation is that AI will focus on improving efficiency at the back end in terms of marketing operations and effectiveness with superior analytics. 

With the increasing popularity of AI, ad agencies are beefing up their skill sets too. What do you think agencies should focus on in 2024 and what qualities or capabilities are you looking for in your agency partners in 2024?

Capability building in the space of AI – being first movers and helping clients adopt AI to increase efficiency and efficacy will be important for all agencies. It's still quite nascent today but early adopters will have a huge advantage in times to come. When selecting agency partners, we value qualities such as sharp insights, an in-depth understanding of the space in which the brand operates, passion for the brand, and willingness to experiment. Tech-friendly agency partners who can use AI meaningfully with consumer insights relevant to the brand are in a great position to help brands experiment and deliver meaningful, unique experiences for their customers. 

Brands that have been operating for decades run the risk of becoming obsolete or antiquated. How do you make sure that you are reinventing yourself, staying relevant, and at the same time, standing out?

We are always mindful of the risk that comes with decades of operation, especially with changing consumer profiles. This is why we lay great emphasis on relevant product innovation. The brand’s guiding philosophy of Soch Ke Banaya Hai is not just lip service but at the heart of our operations. From 24 x 7 social listening to 24 x 7 customer service, technology is playing a key role across the spectrum from manufacturing to marketing to service in how we stay relevant, but at the core is the deep-seated commitment to placing the consumer in the center of our business. It is this approach that makes us authentic and also differentiated at all times.  

With the emergence of young D2C brands, who have a fresh canvas to experiment more with advertising and can afford to take more risks, how do you compete with them?

We prefer to build on our own strengths rather than trying to imitate others. We believe in experimenting, and that’s why Godrej has been known to launch differentiated offerings in each space it operates. A brand with our equity does not need to chase controversial risks to drive visibility or recall. What we focus on instead is meaningful experiences for our consumers. For example, our after-sales service is rated the best by consumers, as per a recently concluded independent nationwide survey. With a strong base of consumers, we aim to delight them with our products and services throughout their lives, and this is how we earn consumer trust. 

What are your short-term and long-term marketing goals for Godrej Appliances this year? How do you envision Godrej’s marketing shaping up in the long term?

Given the strong premiumization trend making waves in the industry and the plethora of high-end launches for the brand, we are focused on the brand’s aspiration and imagery. Consumer-obsessed, data-driven and agile – these will be the pillars for Godrej’s marketing. Technology will be an enabler as we continue to focus on relevant offerings for our consumers. 

Godrej has been vocal about its commitment to sustainability. Can you elaborate on how this factors into your marketing strategy?

Sustainability is deeply rooted into our core brand values and Godrej Appliances stands at the forefront of sustainability in the Indian home appliances market. In doing so, we contribute towards the betterment of the planet and deliver delight not just for consumers of today but also work towards the consumers of tomorrow – our future generations. It may have become a buzzword today but at Godrej sustainability has been our way of business for decades. Doing so has enabled us to forge deeper connections with a growing audience that values responsible choices and earn incomparable equity. The green plank features in our product development to identify the right USPs in our communication to our consumer activations and the kind of experiences we give to our partners and consumers.

With your extensive experience in marketing, can you tell us what elements are essential for creating campaigns that generate optimal outcomes for both the brand and business? Additionally, how can brands, such as Godrej, cultivate meaningful connections with their customers?

A deep understanding of the customer and his relationship with the brand and product, an appreciation of market context, and a balance between the brand’s long-term and short-term goals with measurable objectives for both – these are some of the factors that go a long way in delivering impact. These ensure that the target audience selection, the media vehicles chosen - the overall campaign mix is tailored to the specific objective. At Godrej Appliances, our mission is to unlock experiences that engage customers and build loyalty. Authenticity is fundamental in the way we listen to our customers and engage them through a meaningful memorable experience.  

The appliance industry has long been criticized for adopting a gender-biased approach in its advertisements. How do you perceive the evolving portrayal of women and men in current advertising?

As a marketer and as a woman, this is a cause close to my heart and in every communication that we put out, we strive harder for a more balanced portrayal of women and men. While some of our digital campaigns have done this actively the truth is that in every piece of content we put out, we try to be mindful of this.

The subtleties go a long way in building a larger mindset. It's an ongoing journey and we are dedicated to fostering a more inclusive and respectful narrative. Advertising is very often a reflection of the times and its heartening to see many positive changes across sectors – and yet there is a long way to go. 

What are some trends you expect to see in home appliances this year in terms of marketing?

With premium categories driving growth, one expects to see more visibility driven by brands along with greater digital focus. Within digital, e-commerce led purchase driving advertising is expected to grow apart from influencer marketing, and other video-led formats. With internet penetration and organised appliance retail – both proliferating in suburban India, vernacular content and localised targeting is expected to grow as well.