Parle Products Chief Marketing Officer (CMO) Mayank Shah spoke to Kartikay Kashyap about the impact of the Iran war on prices and how AI is reshaping the advertising industry. Excerpts
What did the ‘melody meloni’ meme fest do for the Parle brand?
There is a lot of buzz, which has provided a great opportunity for the brand to scale up. It is an inflection point for the brand. We are the largest selling toffee brand in India and this moment has given us an opportunity to make a mark in the global markets. We are now looking to build on this and sustain the momentum.
What’s your take on the rampant use of AI in advertising?
It is going to substantially change how consumers are going to decide or buy. Some amount of impact is visible already. Brands need to be AI-ready to continue to be relevant to consumers.
FMCG volume growth may soften 3-4% amid rising costs, say analysts. What’s your estimate?
India is a huge market, and situations like these will not hamper our growth. Due to the geopolitical crisis, the input costs for brands have increased, which is putting pressure on the budget of Indian consumers, resulting in soft demand. In the long run, India will continue to see strong demand. Also, brands operating in the essential categories might not suffer that much compared to discretionary brands.
Major FMCG firms have raised prices by 2-7% recently. What are your plans?
There is an increase in input costs. For example, gas and plastic used for packaging which is a derivative of crude oil. The increase in fuel prices will have an impact on freight costs. Some of these parameters are volatile, which makes it difficult for marketers to predict. Brands are closely monitoring the situation and will take a call. They might increase the prices in a staggered manner. They might partly absorb the cost and depending on where the input cost finally settles, they will make another price hike. We are also monitoring the situation and will take a call accordingly.