BY ROBIN GHOSH ,
ECONOMIST AND BUSINESS MENTOR.
KOLKATA, 26 JULY 2024:
One major problem for MSME companies is how to devise a marketing and sales strategy to garner a larger share of the market.
Influencer marketing is a modern marketing tool which can be utilized by small and medium-sized enterprises to enhance sales and brand building.
What is influencer marketing?
Broadly, it means a social media marketing approach that uses endorsement and product mention from influencers. These influencers have a dedicated social following and are viewed as experts within their niche.
Influencer marketing works because of two reasons.
Firstly, Influencers enjoy a high trust factor with their followers, and secondly, their recommendations serve some kind of social proof of the brand they recommend to their potential customers.
What is the status of influencer marketing in India ? Well, it is becoming popular since it is affordable specially for small and medium business owners.
Anil Bharadwaj, Secretary General, Federation of Micro, Small and Medium Enterprises, in a recent interview says “A targeted approach helps influencers raise awareness of a product or service among a niche group of audience that fall under the addressable market”.
Take the case of Ghar Soap, a Pune based company. A skin care brand which aggressively used influencer marketing and achieved amazing results. Initially, the company was spending Rs. 5000 to Rs. 10 000 a month on influencer marketing. But when it started giving amazing results, the company started allocating Rs. 50 lacs a month and collaborating with 50 to 60 creators.
Watch another case study.
Collaborating with influencers, Sun and Marshal, a Delhi based Eyewear company achieved wonderful results. Not only was the campaign cost effective but also was highly target oriented.
Before we explore how influencer marketing can work for MSME units, let us have a look at various categories of influencers.
There are four types of influencers, and they are:
1 Mega influencers (1 million + followers.)
2 Macro influencers (100k – 1M followers)
3 Micro influencers (10k- 100k followers. )
4 Nano influencers (< 10k followers. )
To achieve right kind of results ,
you have to ensure the right mix of influencers, right target audience and at right price to get optimal results.
To ensure success from influencer marketing strategy — you have to be careful — about the terms of collaboration.
A few guidelines:
1. Timeline and Deliverables: Campaign outline . Start and End Dates.
2. Payment and Terms: One time fee or Retainer fee or Performance Based fee.
Before we conclude, make no mistake to understand:
1. 50% of consumers purchase at least once a month because of influencer posts.
2. 80 % of consumers make a purchase inspired by an influencer post once a year.
Hail Influencer Marketing.
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