Showing posts with label marketing in India. Show all posts
Showing posts with label marketing in India. Show all posts

December 20, 2017

Stockholm syndrome & Ramdev Patanjali Ayurveda marketing

Ramdev can’t hope to win in fmcg space dominated by women power. Yogis who consider women as bad influence thus refusing to respect them as wife or a life partner must not hope to have a bright future. I appeal Ramev to come clean on this and clarify why he refuses to love women as life partner. To those women who suffer from Stockholm syndrome my humble appeal would be to stand up and fight for equality. Don’t by products sold by celibate religious people of any religion because they stand for misogyny that makes life of women difficult on earth.

Agreed India remained under foreign rule for centuries. Accepted the Indians didn’t get independence as result of war against the occupying power, like USA or Vietnam get.  Despite 70 years of independence Indians fail to become globally competitive society as reflected in dismal performance in Olympics, FIFA world cup, Oscars or Nobel prize to name a few. Therefore many scholars tend to conclude that Indians in general are not ready to shoulder the leadership responsibility thus preferring the follower role.

Countries in Indian subcontinent, Sri Lanka, Pakistan, Bangladesh and India have already seen women head of states as PM & President, unlike the USA, despite the fact that women in the USA enjoy far better socio-religious freedom as compared to their pitiable plight in India. How could women rise to the top political jobs in countries that are notorious for subjugating women? It’s no brainer. All the women who occupied top political posts in Indian subcontinent came from political families who succeeded their male relations. Ms Mamta Bnnerjee, CM of west Bengal perhaps the only top political leader in Indian subcontinent who rose to top on her own merit sans any male patronage. Don’t you think Hillary Clinton would have won against Trump if she had not been seen as an ex-Presidents wife? All right thinking people must strive for an equal world, a culture where when women have same freedom to commit mistakes and still get accepted as equal as men have enjoyed for centuries. Women and men are made equal by Gods and no decent man can find an exception to the rule.

If you wonder how the above enumeration relates to rapid rise of a controversial uneducated religious bigot popular as Swamy Ramdev in the business world? Well Ramdev have entered low technology FMCG trade to sell commodities and packaged products which were already available in the market. Ramdev has used religious Hindu fundamental appeal to sell commodities and low technology semi processed items. His rise can be seen as ripple effect of rise of Hindu fundamentalism in all spheres of life in India from politics to education. Although rapid rise of Patanjali products of Ramdev looks logical in charged atmosphere of Hindutva fundamentalism in India but its future remains surrounded in mystery.

Will Ramdev be able to sustain his trade in the low tech and low margin trade of commodities with highly substitutable product categories sans differentiation if the wave of Hindu fundamentalism wanes in next 2-3 years? Serious business managers would seriously doubt the future prospects of Patanjali trade empire. Why would a customer buy Patanjali products sold by a religious Hindu fundamentalist Swamy when there are many normal Hindus are already marketing such products of equal quality? What will happen to Hindu fundamentalist appeal if India has to go to war against China or Pakistan? In my opinion a war with China is almost round the corner. Secondly I would like to draw attention to more fundamental and pervasive contraction threatening the future of Patanjali products.

Ramdev is riding a tiger in the low technology fmcg world. Ramdev a celibate won popularity as a religious man who didn’t marry because yogis consider women as distraction in achievement of higher goals of life. Unfortunately for all Hindu fundamentalist yogi and Swamys like Ramdev it’s the women who decide the fate of fmcg class of products. Will the women continue to buy products endorsed by a guy like Ramdev who considers women as distraction and refuses to give them equal status as life partner? In my opinion no self respecting educated women would by products from those who insult and disparage women. Ramdev can’t fool all the women for all the time. Let’s wait for the moment when women launch a campaign to boycott Patanjali products in their fight for dignity and equality in India. I am sure Ramdev has not hired a professional advertising agency or discussed the branding with an expert. No one can sell products/services to those who the seller don’t respects.

September 5, 2016

Reliance Jio can change a lot in India

In my opinion India has been a hub of B2B family owned firms since 1947. The industry have remained under government control, still the govt wields heavy influence, because the industrial houses wanted it that way. Despite many public pronouncements by various govts since 1991 when Dr Manmohan Singh liberalized the environment doing business in India particularly in MSME domain is pretty challenging. But lets restrict discussing the grand roll out, a la Modi rally, by Reliance Jio in the huge telecom sector.

Firstly Mukesh Ambani made a Modi style speech promising big to Indians in the national interest. Although the reliance shareholders are used to such speeches as they heard such stuff during dedication ceremony of KG basin too to the nation too. But India has changed since and the youth was flabbergasted gasping for breath asking what did Mukesh Ambani invent to make such claims?

Secondly at the moment Reliance Jio is no pioneer in the telecom space. It has to contend with major established players capable of taking it on in a price war. Moreover customers have experienced Reliance service for quite a while and many don't have many positive things about its credentials. Customer trust, not the price play, is the cornerstone in service marketing in India as well as globally. Let's hope Reliance learns to win minds and consequently hearts of customers if it hopes to succeed this time.

Reliance don't have a shining record in customer facing business. Its foray into organize retail has not been able to earn it the numero uno position therefore it would have to work harder in telecom because telecom customers are spread over the rural market also. Indian firms generally lack in customer service area and in service marketing the quality of customer service can make or break a business.

How could i end without discussing launch campaign of Jio? Please ask any professional advertising guy in India to know how little space is allowed to them by the advertisers in designing the advertisement message strategy. Perhaps Ambani and family ordered the agency to prepare the layout as per their choice. I always tell my students to see the launch advertisement of Indica by Tata Motors. In my opinion the Indica launch advertisement has been the best ever launch campaign by any Indians corporate.  It contained all that you learn in a premier MBA course anywhere on the earth.

Finally let me state that i haven't got a response to my online booking of Jiofy within the stipulated 48 hour period. Speaks volume for customer service level. Anyways India need its major corporations to succeed so that we can survive and feed our enormous population,  

September 21, 2012

India Welcomes Walmart Tesco Carrefour : FDI in Multi-brand Retail


Finally on September 20, 2012 Government of India allowed Foreign Direct Investment in multi-brand retail in India. It’s possible now for global retail majors like Wal-Mart, Tesco & Carrefour to enter the market which has 300-400 millions strong middle class. Without going into political economy aspect of the move let’s look at the management & marketing side of the multi-brand retail in India. Retail & aviation has many similarities in India particularly. Retail majors need to learn lessons from India’s aviation industry as both cater to same customer base.

Lessons: Largest of the domestic corporate giants have burnt their fingers in organized retail in India during more than decade long period. Top three of them have reported losses. Retail in India is a fragmented unorganized business evolved alongside the social structure of communities. India has more cultural diversity than entire Europe as language, food habits, customs, religions & even Gods change every 50 kilometers in India. Hindustan Lever Limited had attempted to monopolize ice cream market in India two decades ago by buying out major brands but they could not fight with local satraps.

Basics: India has population of the size of China living on 1/3 of the area. Publicity managers of brand India have projected that what makes India attractive is presence of 300-400 million middle class consumers. Let me flag this figure right here from marketing perspective. Since Indian society is highly fragmented & culturally diverse therefore it’s a challenge to find various ‘consumers profiles’ embedded in this large population of consumers.

India buys few cars just [1/6 ] as compared to China. This figure is very significant as majority of Indian people prefer buy a house before car unlike in rest of the world.  India has no problem with congestion as all metro cities are teeming with people hence retail experience to India may not be same as routinely described in classical retail plans. On the issue of buying on credit or cash Indian consumers are no different than others but majority of Indians don’t have credit cards.

Entry Strategy: What business model Walmart would use in India is the billion dollar questions. Will they go for company owned company operate [COCO] route to begin with or take the franchise route? I believe later route may be more suitable as it would cut cost of entry & provide for safe landing for this controversial roll out. If Walmart recruits 25 major franchises in the beginning it would provide substantial leverage in domestic market to navigate the social reaction in the first phase.

POS & billing: In my opinion POS strategy would be the waterloo for Retail in India. Walmart, Tesco & Carrefour would be wise to invent a new POS strategy as no other country resembles in India in buying behavior. I would recommend that CXOs of retail giants should invest lots of their time at airport lounges & Metro railway in Delhi & Kolkata to grasp the behavior of Indians and ignore Mckinesy consumer reports. It’s impossible to succeed in retail without strategizing this final moment of truth in retail trade.

India is really a more diverse country than it appears on paper. Retail industry may have to take Indian Railway route & organize the operations that could handle the diversity of buyer needs in India. Historically Indian may have lived under centuries of foreign domination but they have succeeded at maintaining their lifestyle & culture and this must serve as guiding principle to any executives involved in this service sector. 

Business in corona crisis

Think if the Covid19 isn't the last virus threatening to wipe out human race in 2020? What would you do to prepare for the threat? There...