CHILDRENS AS CONSUMERS

Presented by:Jitesh chaudharySaroj mohiteRohan chavanSuraj pandeyKamal singhNikhil shirode.

INTRODUCTION

Kids represent important demographics to marketers.

Acts as buyers as well as

influencers.

A target group with tremendous

purchasing power.

Influences the purchasing decision of parents by specifying the preferences.

Pester power:

Refers to “children’s ability to nag their parents to purchase items which they may not otherwise buy”.

Pester power increases with

increase in nuclear families.

More noticeable in families

with dual incomes.

Thereby inclining parents to spend more on their children specificity.

Marketing Techniques:

Electronic communications (Tele adverts)

Marketing in schools

Brand licensing

Internet marketing

Advertisements:

Advertisement through electronic media engages kids the most.

For kids specific products, kids in advert connects to target group psychologically.

For adult related products, kids are roped in to connect with target group at an emotional level, thereby increasing brand equity.

Banks & Insurance companies have also roped in kids to send a message to their target audience.

Marketing in schools:

Targets schools environment for promoting the brand.

Promotes the product through school buses, book covers, sponsored educational materials, etc.

Also advertise the products by sponsoring sports & cultural events.

Eg. Camlin has been organizing

competitions in schools

for decades where they advertise their product basket.

Brand licensing:

Important tool for influencing younger kids.

Refers to “licensing of popular fictitious characters to the brands to gain acceptance & increase brand loyalty”.

Marketers design such products with popular characters to lurethe children.

Helps to build an emotional connect between the character & target audience.

This techniques helps to differentiate the brand from the basket of other products.

Internet Marketing:

Best affordable medium to reach masses.

Surfing habits of young

children makes them

ideal target group.

Marketers on websites & social media platform, try to entice children to generate sales.

Children are future consumer & hence brand loyalty at young age helps for future sales.

Market Research:

Qualitative research: Simple random

sampling.

Sampling unit: kids & their parents.

Sample size: 30

Methodology: Direct Interview Method.

Key findings:

Children has more influence in purchase decision for children related products. (toys, snacks, clothes)

They had comparatively less influence on adult related products which have high financial involvement.

Children influence in purchase decision is governed by child’s assertiveness & parent child centeredness. (influence increases with these two factors)

Gender: Male adolescents were more influential for video games, CDs whereas girls were more involved in household items.

Cont’d . .

Male adolescents showed greater tendency towards store choice, consumer knowledge & more materialistic aspects.

Female adolescents showed greater tendency towards information search & cognitive differentiation.

Age: older children were found to be more influential due to progressive development in cognitive abilities.

Family income showed a positive relationship with child influence on purchase decision.

In low income family, the price sensitivity factor is passed on to children which can make them price sensitive buyers in future.

Other factors like socialization of children through social media, influence of peer groups and educational environment have significant impact of children’s influential capabilities.

Research conclusion:

Children have direct & indirect emotional involvement on parents buying decisions.

Children’s increased influence on parents buying decision can be attributed to:

Increase in no. of working couples thereby increasing financial base.

Shift from joint families to nuclear families.

Lesser no. of children results in increased buying power.

Repeated exposure to media resulting in socialization of children.

Kotak junior account

Kotak Junior Account is

designed to inculcate the

habit of savings in children

from an early age .

Help parents build a corpus for their child's future.

To encourage parents to save for their children by linking it to a RD

In this advert, it shows that most children enjoy saving money (piggy bank to save), at a very young age.

This product helps to provide some financial literacy among children.

It is quite clear that the little girl, kids are the target consumers and the product is aimed at mothers - the actual customers of the account.

Kotak believes that children-specific accounts do well if they are associated with mothers, as opposed to fathers.

She pockets the loose change from the trousers of her elders.

She collects the coins from every possible location in the house.

All the coins she has collected is then kept safely, before being taken to Kotak Mahindra Bank where she opens a ‘Junior Account’.

The idea being that all the money she has collected through her efforts is now safe with kotak’s junior account thereby inculcating a habit of saving funds at an early age.

Independent Junior Bank Accounts

According to RBI circular, banks can allow minors( above 10 yrs) to operate their bank accounts independently.

Aimed to promote financial

inclusion & to bring uniformity.

Banks have been advised to

allow transactions for such

accounts but with limitations.

The minor will get debit card and cheque book facilities.

Implications :

A way not only for savings but also for earning interests.

Help to make smart purchases through exclusive debit cards.

Knowledge of operating account at an early age.

Gain knowledge about better investment options from time to time.

This move will guide children into financial sector and will give a clear picture financially.

Children as Consumers:

Advertisement trends in teenager

Low Involvement to High involvement Product or Services.

Emotional to Techno-emotional.

Commercial break to Embedded Marketing. (within serial/movies/Customer engagement).

Children are taking decision

on purchase of low

involvement product (low value

product) & children centric

products

Bicycle, Ice Creams, Chocolates,

Video games, hobby related

products etc. https://www.youtube.com/watch?v=YfFlaavmqSU

Children are influencing parent's

decision on purchase of high

involvement product (High

value product) & services

Car, Home, Child Education Plan,

Tour plan & destination etchttps://www.youtube.com/watch?v=zSlhbBBBi3A

Shift from low involvement to high involvement

Emotional to Techno-emotional.

The Driving force is emotion in

the Advertisement which

involves children.

1. Daag achhe hai campaigne.

https://www.youtube.com/watch?

v=EiBLDWjhv_Q

2. LIFEBUOY Commitment to

help a child reach 5 campaign.

3. Oreo campaign.

The Driving force is techno-emotion in the Advertisement which involves children.

Bajaj Discover 150 'ChaltaNahin, Daudta Hai‘

https://www.youtube.com/watch?v=DoU32Wd2kP0

Chinese Note book Advertisement

During Commercial break audience change the channel or do some other

activities that decrease number of real advertisement viewer.

Children copy the characters so they are demanding the same product which

is used by krissh, Doremon & Chhota Bheem etc

https://www.youtube.com/watch?v=KmVYETHyLQw

Embedded marketing doesn't give freedom to audience to escape the

advertisement.

It also maintain the interest level in audience with long recall value.

Precious currency i.e. time saved

Commercial break to embedded marketing