Here's why brands bank on Independence Day for new product launches

Source: Reuters

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This year on Independence Day, Ola Electric, a product by ride-hailing company Ola launched its first e-scooter with the Ola S1 series in India.

On the same day, another company called Start-up Simple Energy launched its first product Simple One, an electric scooter.

Snack food company Mondelez India also leveraged opportunity and launched Unity Bar, a combination of dark, blended, milk and white chocolate united in one bar on 74th Independence Day.

And a day before Independence Day this year, automotive company Mahindra launched XUV700, one of the most anticipated and awaited SUVs from the company.

These launches point to the fact that for many brands Independence Day is a lucrative period for new launches and experts list down what makes this day so special for brands.

Sandeep Goyal, MD, Rediffusion, an ad agency said that Independence Day is a good day to play on the symbolism of freedom. "So, Ola scooters, or similar, wanting to communicate empowerment and emancipation through their product offering have chosen that day for symbolism," he said.

Festive fever

"Independence days brings with it the onset of the festive season. It is a compulsory national holiday so that ensures the attention of the audience across the country. We all know that spends increase during the festive season and an Independence Day launch means all the coming months are going to have higher demands," Ritesh Ujjwal - Founder, Kofluence.

The spending for the festive season starts from August 15 and the festive period contributes around 40 percent to the entire advertising expenditure.

Plus, Prashant Puri, Co-Founder & CEO, AdLift, a digital ad agency, pointed out that on an average, time spent online increases by 30 to 35 percent on holidays and brands take advantage of this statistic.

And while festivals are good for sales or special offers, Richa Singh, CEO & Co-founder, Blogchatter, a blogging and media platform, noted that Independence Day has a deep recall in the minds of the consumers.

Tapping into consumer sentiments

"This is because we are programmed to observe this day as a celebration of the India story. Not just an average household celebration, this very pivot in emotion helps us remember campaigns that get launched on August 15 a tad bit better. And what else does a new product launch need if not better and longer shelf life of consumer memory?" she said.

Adding to this, Shuchi Sethi, India Lead, AnyTag, POKKT, a mobile video advertising platform, said, "Independence Day is one the biggest celebratory day in the country which is not skewed to a race or a community or even a gender. It is one day which is celebrated by all age groups. This is a perfect day to cater to all geographies, target group, gender and demographics."

Brands on this day tie their messaging to a broader national theme including safety of women, made in India products, religious harmony or saluting heroes to make themselves more relatable.

Rohit Kumar MS, Co-founder & Partner, Zensciences, a digital marketing agency gave Cadbury's example that launched the 'Unity Bar' which signified how diversity can be sweet. "Even international brands like The Body Shop curated a tri-color product range to appeal to their Indian customers," he added.

And brands reaching out to their customers and building associations of pride, emotion and nation-building also see better conversion rate, said Kumar.

Chase for better conversions

"Conversations built around such messaging tend to have far more conversions, and therefore the ability to sell more. The bottom line is - Independence Day is a celebration that cuts across segments and therefore has the ability to pull in collective action for the brand whether that is the form of an offer, a flash sale, a give back to the community or just a message of solidarity, brands can see an uptick in conversion," he added.

"The brands that we work with on Independence Day launches and product sales do see a higher conversion rate," Puri observed.

So, which are the categories that are banking more on Independence Day holiday?

Categories eying Independence Day

"Traditionally, FMCG, electronics and household appliances see a surge in launches, discounts and offers," said Kumar.

According to AdLift's Puri, electronics is a big advertiser during Independence day followed by apparel.

And POKKT's Sethi said that "it is mostly e-commerce brands and some of the tech brands that have exclusive offers going on as it is the perfect day to target all target groups with zero leakage."

Creativity is a must

While Independence Day has proved lucrative for many brands, Utkarsh Sinha, Managing Director, Bexley advisors, a boutique tech, media and MSME investment bank focused on early-stage deals, highlighted the need for a creative campaign. "Unless you have an extremely creative campaign that ties the root of your product to the festival, while creating a strong recall channel, a product launch during a holiday like Independence Day is likely to get lost," he pointed out.