It took a brat to upstage them. BMW was just four years old in India when it overtook Mercedes-Benz in sales. The 2009 scoreboard read Mercedes-Benz: 3,247, BMW: 3,619. Next year was an encore, Mercedes-Benz: 5,819, BMW: 6,246. Not because Mercedes had to recall cars or rumours of engine defects hit the street. Just that a new class of rich, the 30-somethings, dumped their fathers' favourite car to opt for higher 'cool quotient'.
Is it that the oldest luxury carmaker in India missed the rise of the new millionaires? Not possible. Blinders wouldn't shut out the impact of the surge in purchasing power of youngsters in their 30s. According to IMRB's TGI study, their average monthly income shot up by nearly 36% in the past four years. Youngsters swiping platinum credit cards are everywhere, buying premium clothes, high-end durables and fancy gadgets.
Not just Mercedes, India's biggest brands recognised the trend but were unsure how to respond. The loaded 30-plus generation represents the biggest market opportunity in recent times. To target them, brands need an image makeover. Yet, if companies chase the 30-plus, won't older, and in most cases richer, customers feel alienated? Will it require parallel marketing campaigns to engage different sensibilities? Or is it marketing hara-kiri to try straddling diverse age groups?
A unique trend saved brands the trouble of finding out. Turns out, there is one kind of brand that appeals to people of all generations: the brand for 30-year-olds. Please them, and you please all. Companies don't have to send out multiple messages, just one: that they are the brands 30-year-olds flaunt.
This new-fangled marketing philosophy raises many questions. Why do different age groups relate to the same ads? Do products have to change to send the one-for-all message? And what makes brands youthful? To find out, ET on Sunday spoke to marketing gurus and companies that have adopted the new strategy.
They have shed years to talk to 30-somethings but haven't lost their original customer base. Think of campaigns like Raymond's latest TV commercials featuring a son who gets his first job in Singapore. BlackBerry's new boys on the block. Or the grooms-to-be and new fathers in the SX4 Diesel's latest ads.
Perhaps you didn't notice everyone in these advertisements has turned 30. But that is just what this story is about. Why did you miss it? And why are you queuing up to buy what they sell?
The 30-pluses become rich.
They buy old boys' stuff
Earlier, ads targeted either kids or their parents. One had the need to own new things. The other had the money. Often they influenced each other's buying decisions. Today, the 30-39-year-olds combine both: they are rich and have the spending itch. What's more, they come in huge numbers: according to Hansa Research, 65% of the population is between 20 and 40 years.
What boosts their purchasing power is credit cards and loans. "The 35-year-olds are credit animals. EMIs are a way of life for them. There is little they consider beyond their reach," says Harish Bijoor, CEO of Harish Bijoor Consults.
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