What are the driving forces of marketers' strategies in 2024?

In a world where brands battle for attention like never before, the role of Chief Marketing Officers (CMOs) has become a pivotal one. As the gatekeepers of a company's image and message, they navigate the ever-changing landscape of consumer sentiment and market trends with finesse.

In 2024, their priorities are not just about selling products but way beyond that. As we look ahead, the spotlight is on these CMOs, who are deciphering the pulse of the market and steering their brands towards new horizons. Let's delve into their strategies and priorities to uncover what drives their brand’s success.

In a panel discussion at Ad:tech 2024, Gaurav Mehta, CMO, Noise, while explaining what the current market sentiments look like, said, "I am a representative of the smart wearables industry, including smart watches and similar devices. Over the past few years, we have experienced triple-digit growth, which is quite remarkable. In the last calendar year, the category grew by approximately 35–36%, which is considered a significant achievement."

“The main point here is whether the best days are behind us or still ahead. I believe this category has yet to reach its peak. Looking at the current billion-dollar smartwatch industry in our country, we expect it to grow to 3–3.5 billion dollars in the next 4–5 years. So, the best days are ahead of us. However, we need to be cautious,” he added.

Furthermore, Mehta mentioned that the focus should be on optimisation and service-based revenue rather than solely relying on market-driven revenue. It's not just about product-driven growth; it requires a comprehensive ecosystem approach.

Meanwhile, Rajiv Dubey, Senior GM and Head of Media, Dabur, said, “Typically, our growth comes from our traditional products, which have been established for several years. However, over time, growth tends to level off. This flattening occurs particularly in categories like FMCG, where constant recruitment of new consumers is necessary.”

Products with low penetration rates, such as chyawanprash and honey, which are only penetrated to about 5–10% or a maximum of 20%, face this challenge. Conversely, products with high penetration rates, like toothpaste, which is nearly ubiquitous in the country, achieve growth by capturing market share from competitors through marketing efforts. So it's always a mix of different kinds of strategies that one adopts, Dubey said.

“Every year, we introduce new products as part of our product lineup. Our goal is to ensure that at least 5% of our annual business comes from these new products, 5% from innovation. The remaining portion of our business is sustained by our traditional products,” he added.

Moving on, Vaibhav Pandey, Co-founder and CTO, Tyroo, said that even they have witnessed good growth over the years. However, recently they have noticed a shift in mindset, in the sense that when funding winter started, marketers prioritised profitable growth over indiscriminate expansion.

“This means they are focusing more on return on advertising spend (ROAS). It's not simply about pouring money into growth anymore, it's about achieving specific KPIs that align with their business plans. So, while growth remains a priority, it's now more about quality growth. Moving forward, there's still room for growth, but it will be approached with greater caution,” he added.

Speaking about premiumisation, Mehta said that it seems that every two years, people tend to upgrade their smartwatches. They become accustomed to a certain level of performance and then seek something better, whether it's in terms of design, aesthetics, computing power, and so forth. For Original Equipment Manufacturers (OEMs), it makes sense to provide a product that matches or exceeds the user's initial experience when they return to the market, say from their 2022 purchase.

“It's like expanding our offerings to meet the needs of returning customers. When someone comes back for their second smartwatch or audio device, it's like saying, "Hey, we're keeping up with the latest for you." So, for me, "premiumisation" is about raising consumer expectations and providing the right hardware and services to meet those expectations,” Mehta said. 

“There are other important factors to consider as well, like the fact that we launched a smart ring a few months ago, which is noticeably pricier compared to our smartwatches. This higher price point attracts a new audience segment. While our first product targeted our existing audience, this one aims to appeal to a different segment. Both products aim for premiumisation, but they do so in different ways,” he added.

Dubey shed light on the areas where Dabur is utilisng AI efficiently, saying, “We have been using it from initial concept testing and consumer research to product testing and research and development within HR, Gen AI has become integral. Concerning the question of whether AI will render creative departments obsolete, I believe they will remain essential, as human input remains crucial for ensuring relevance and appropriateness.”

Mehta said that, in terms of marketing and content, content plays a significant role in influencing consumers towards products like smartwatches and other electronics. AI needs to excel in this aspect, providing ample and insightful content that elicits strong responses from consumers.

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