MoCoupons will be boon for FMCG companies: Sandeep Goyal

10 Sep,2013

By Gulveen Aulakh

 

Since selling his 26 per cent stake in Dentsu India in 2011, former chairman of the company and adman Sandeep Goyal wrote the CAT exam at the age of 50 for admission into FMS, Delhi, launched a food channel on television with Sanjeev Kapoor and then floated Mogae Media for venturing into the nascent mobile marketing and advertising sector.

 

He has since raised Rs 100 crore from private equity players for the new venture.

 

In a conversation with, Mr Goyal said that his company is inventing ways to monetise the ubiquitous mobile phone and has come up with mobile-couponing or MoCoupons – the most direct way for brands to reach out to consumers without spending a bomb on advertising. Excerpts:

 

How does mobile couponing work?

Companies spend large amounts on TV and print media marketing campaigns to prompt customers to buy a product. Today, it can be done far easier, more cost effectively and time efficiently, using mobile phones. This is how it works: A brand sends out coupons to consumers using a telecom operator’s database. The operator knows where the telecom subscriber lives, works, his monthly ARPU, a good surrogate of spending, the type of handset owned, a good indicator of affluence, and hundreds of pieces of information.The coupon can be sent to all consumers in a specific geography, say NCR or just Gurgaon, or while the consumer is entering a mall using a geofenced solution that serves the coupon in real time based on location of the customer. The consumer then takes coupon to the participating merchant, gets an instant discount or gratification . The MoCoupon system reimburses the merchant on the brandowner’s behalf through the mobile money account.

 

How will it work in India where not everyone has a data connection?

Consumers don’t need a smartphone or data connection. Mobile coupons can be sent as an SMS or USSD (text message based interactive system) with an alpha-numeric code that merchants can authenticate.

 

What benefits do corporates see in associating with mobile couponing? Have you signed up any clients?

MoCoupons is an end-to-end couponing ecosystem that allows brands to access consumer base of the mobile phone company and target consumers by geography, time-of-day, location, ARPU, handset and a host of other tags. No such system of such magnitude and reach exists in India. For FMCG companies, this is a boon. We have signed up 1,500 grocers in Delhi, which will swell to 2,500-3,000 by end September across NCR (national capital region). By end of the year we will have 5,000 grocers, general merchants and above-the-counter pharmacies in the system. Post Diwali, we will reach out to the other metros. In 2014, we’re aiming for a base of 30,000 grocers in 20 cities.

 

How will customers benefit from mobile couponing? Please share some instances.

Customers (those who are not on DND) will receive offers or discounts from their favourite brands above and beyond those offered to other customers. Recently, a pizza brand used us to send out MoCoupons in a select business district of Gurgaon between 11 am and 12 30 pm, pre-lunch. Customers got a dessert free with the pizza. We are currently working with a large multinational bank for a promotion at Palladium Mall, Mumbai, where the bank’s credit card users get an extra 10-20per cent off at 40 participating outlets. But the big impact will come once we have a large enough base of grocers so that FMCG companies can run promotions on every day products. For instance, offering Rs 10 off on a toothpaste or Rs 20 off on (a bottle of) ketchup.

 

Does Mogae Media plan to reach out to a multi-operator base?

We are today forging many alliances that will allow us to reach out to different type of customers across geographies, as well as income strata. We are integrating with the point of sale systems of modern retail to allow seamless and quick couponing.

 

Source:The Economic Times

Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

Licensed to republish

 

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One response to “MoCoupons will be boon for FMCG companies: Sandeep Goyal”

  1. Himanshu Agarwal says:

    This is cool stuff. Best wishes to Mr Goyal and his team. I also share some of the observations after reading this
    piece.

    1. This is something different than the deals offered by popular deal portals. It goes at a more granular level and brings FMCG into focus. People will always buy toothpaste like clockwork but the same is not always true for dine in at a restaurant, spas, tattoos etc…

    2. However, the concept itself does not sound very unique to me. The entire concept hinges on relationships with merchants and telcos, which won’t be hard for someone to replicate unless these relationships are exclusive, which I doubt.

    3. FMCG is a low involvement category. I will rather buy from a small outlet than travel some distance to claim a minor discount. However this can be countered with how the discounts and the distribution of the same is structured, in terms of validity periods, clubbing of discounts from the same merchant, monthly discount vouchers, quantities on which discount is applicable etc.

    4. It’s still a very urban concept and it remains to be seen how established brands will be able to offer discounts. I’ll still buy a Maggi or Kellogs without a discount than ‘MaizeMania’ cornflakes with a discount of INR 50 on a 1 kg pack!

    5. Am not sure and am curious to know who pays whom
    in the trio of Telco, Mogae and the Brand? Seems to me that it is the brand who boots the bill (discounts/offers + service fee to Mogae) and Mogae in turn pays the telco. I could be wrong too. But as brand I would ask the question, ‘If I am funding this ecosystem, what consumer insights do I get in return?’

    6. Yes I agree it is a cost effective way for brands to reach consumers and also allows measuring the reach of participating in this program, but it still cannot match the reach provided by traditional media.

    7. Last but not the least, the words in this release are not Mr Goyal’s. Someone has written it for him. Would love to see how Mr Goyal would have articulated it in his own words!