Creating communities is the game for the day!!!

Buoyed by their successful Tweets and YouTube promos, brands such as Canon, LG, Samsung and Adidas are now busy creating online consumer
communities. Marketers feel that besides increasing brand salience, online communities can emerge as a platform for cross-selling products, thanks to the ever-increasing relevance of the internet as a medium to reach out to consumers. Canon and Samsung Mobile, which were among the earliest to roll out online consumer communities in India, claim huge dividends. Canon has logged in 80,000 members in its Canon Edge community. “Since a lot of consumers participating in our community are interested in serious photography, this translated into nearly 100% growth in the digital SLR camera business,” says Alok Bharadwaj, senior VP at Canon India. “Next month, we will launch an online photo gallery that will provide further thrust.” While money spent on online promotion is still less than 5% of the overall marketing budget for most brands in India, brands like LG and Canon are increasing their online investments 50-100% every year. This is because the return on marketing investment on the internet is high as its cost is minimal and the reach measurable. But the companies are not betting big on online sales. Canon manages to sell some ten cameras every month online, but average monthly revenue of Rs 1 lakh is nothing great. Source--Economic times