‘OOH certainly helps boost sales’
By Shradha Mishra - October 11, 2018
K P Abdul Salam, Group Executive Director, Malabar Gold & Diamonds, shares the company’s outlook on OOH advertising
Malabar Gold & Diamonds, one of the world’s largest jewellery retailers, announced an ambitious global growth plan on the eve of its Silver Jubilee celebrations that will see the company triple its retail network from 250 showrooms this year to 750 outlets in the next five years with annual turnover exceeding US$6.16 billion (Rs 45,000 crore) and the Group turnover to US$6.85 billion (Rs 50,000 crore) by 2023.
The Group currently operates retail outlets spread across ten countries in India, the US, Middle East, Southeast Asia and America. Its massive expansion plan will see the company expand its footprint across all Tier 1 and Tier II cities in North and Central India – in order to cater to the growing jewellery market. The company’s plan of major expansion in international market includes new territories such as Bangladesh, Sri Lanka, Australia, Canada, Egypt and Turkey. As much as 40% of the group turnover will be generated from the company’s operations outside India.
K P Abdul Salam, Group Executive Director, Malabar Gold & Diamonds, shares the company’s outlook on OOH advertising.
What is the percentage of outdoor advertising in your marketing mix?
We use outdoor media very heavily, especially in the southern markets. Even in international cities like Dubai we have used a lot of outdoor media for our product and brand promotion, as the city sees significant tourist footfalls the entire year. We spend 30%-40% of our total marketing budget for Dubai market on outdoor branding.
In India our outdoor advertising percentage is far lesser as there are multiple restrictions on the medium being enforced by the civic authorities. Considering all this we have put 20%-25% of our budget for outdoor. This form of advertising is more economical for us in reaching our target customers.
Whereas ads on TV are relatively expensive, outdoor advertising helps us connect with captive audiences in particular areas at lower spends.
How effective is OOH branding in terms product sales?
Yes, OOH branding works in terms of increasing product sales. Most of the time we use outdoor media as a reminder media. The customers would know the brand and the product; the outdoor ads will enhance their recall of our brand and products. So when they decide to buy gold or diamonds, our brand name will surely cross through their mind.
What is the preferred billboard size?
The size of billboard or hoarding varies across metropolitans, cities and towns. In mega cities we go for bigger size billboard whereas in small cities and towns we choose medium to small size billboards.
What kind of digital OOH do you use in international markets for your brand promotion?
We completely rely on digital OOH for brand promotion in the developed countries. It is easy connect with the audiences there through this medium. Digital OOH formats like screens, signages, jumbotrons, kiosks are used for branding the product.