Understanding the brand and product promotion

For a few days, I have started observing the brand and product promotion strategies by consumer durable sector. Here are my ramblings on the strategies.

1. Titan's discount on surrendering any other watch: I thought about this offer a lot and eventually came to conclusion that this offer serves multiple purposes. First, it is lucrative, get any road side watch and have a discount on Titan. Second, it is mopping out the competitive products present in the market. Effectively increasing the per-capita Titan watches. Thirdly, watches work like self advertisements, the more Titan you see on the wrists, the better it sells.
2. Buy one get one free: I had always been intrigued by such offers. I would think why they cannot sell one at half of the price, or just double the container size? After having a tryst with retail management a few things came to my mind. First, changing container size has two problems; a) Retailers will not find a proper place b) If the original size container has some after use usages, the bigger container may not be useful in that purpose. Second, why cannot they just half the price? This strategy at times back fires; this is just a perceptional change but people always associate price with the quality.  And people will certainly not buy twice the amout even if they subscribe to your brand. Third, and most important in my view, such offer is selling you twice the stuff you may actually need. This serves two wonderful purposes; a) It clears of the idle inventories. b) It makes sure that competition will have to wait twice the time if the customer want to change his/her mind and switch the product. Inflicting thy neighbour :-)
3. Loyalty cards: This is no brainer. It shouts in the air, "our regular customers, yes we do value you". This in turn creats a brand loyalty.

Google wave and lessons in product management

Keep it simple stupid!

Although I wasn't lucky to be invited to evaluate the google wave but what followed on the Internet was more than enough to get at least introduced to. Upon getting introduced to various functionalities and capabilities, I was sure that Google is entering into the PLM world unknowingly but little later I realized that it was actually to compete the one and only one facebook.

Google is one such admired company that doesn't need to spend a penny on marketing. The whole world is ready to do for them for free. Even then the wave stopped!!! 

There are invaluable lessons for strategic product management here.

1. Keep it simple stupid: Google search engine, gmail, gtalk were the cleanest software products available! Why this step child treatment for the Wave? The interface was horribly complex. Although the idea to start with had a merit; when we communicate, we don't pause for the other people, many people in a discussion talk simultaneously talk but then does it qualify to a useful discussion? In the wave you can be bombarded with sudden messages amounting to various points of views. Humans beings have some limitations at least. Wave certainly is better for a brain-storming session but it needs to be more organized. It surely has the potential to replace e-mail, document sharing and collaboration.
2. Facebook is the leader in the social networking. You cannot outpace the leader in whatever he does unless he is recklessly poor in his business model and segmentation reach. Brand wars are never won so easily. Before google was born there was yahoo; yahoo was into search as well as content providing business. Google didn't enter into information providing, instead they created a different market of search altogether. Now who knows yahoo search? Google is verb and an adjective now. Microsoft didn't outpace IBM by providing better and faster mainframes, instead they created a revolution of PCs. On the other hand Flipkart simply concentrated on the market segment left by Amazon. In the same way, if the google had to use Wave, enterprise wide applications could have been the target instead of facebook. Current document management systems, PLMs, ERPs are too poor and inefficient. Google could easily penetrate the market and mop up the market share. But directly hitting the king in his arena is a tough nut to crack.
3. Google has too many products to offer. People are confused about what to see and what not to! This is like the case of  "Consumer Revolt" in the case of many brand/category extensions. (Seriously what is the difference between buzz & wave?)

I strongly believe that Google Wave would have been a huge success had it positioned itself as a B2B document management application. Wave could have swept the whole document management on the cloud market share because of the brand name. We have so many certified SAP consultants; such a move might have change the course of history. (Interestingly this is what Volvo did in India; India is a huge market for Buses and Tata is the king. Indian consumers are price sensitive, thus no operator would anyway test the market with a costly vehicle. Volvo didn't compete directly in that segment, instead they competed in long distance travel where luxury does have a meaning. They also positioned their brand as 'Safe' with the help of Volvo driving schools. Rest is history; I don't wonder when people say, "I don't want Luxury ticket, give me Volvo ticket. This is the Brand at work.)

So what do I conclude today?
If the competition is high, a new product should either create a new market for itself of it should concentrate on the unattended segments to start with, otherwise the demise is inevitable even if little delayed.

Current trends in Branding

Competition mired Indian consumer goods industry is finally thinking about the importance of brand positioning. The recent trends in creative advertising and the paraphernalia in support of the brands have impressed me in particular. I think that the brand building is as good as nest building. A naive bird, carefully picks every straw of correct proportion to weave a nest so tight as it is almost impossible to tear is apart easily. A brand manager also has the similar responsibility. Now it is not much about the quality (producer has to provide the quality (cheap enough for the market segment being tagetted) uncompromisingly otherwise it will be out. Quality does have a premium and people know it), it is about image. It is about an implicit promise that end comsumer assumes of a brand and the brand manager must continuously remind the consumers about that promise.

Here is a tale of Samsung's brand positioning for its hand phone Guru.

Need of brand extension: Samsung has not been a good player in the hand phone market traditionally. On the other facets of competition Samsung has established a good name. Here brand extension becomes imperative. Samsung needs something more than mere Samsung.

Choice of a brand ambassador: They have chosen the legendary Amir Khan, who is trusted for his talent and ahead of the time movies. Samsung is trying to cash in this brand equity of Amir Khan.

Building around a story: This is a recent trend in advertising. The first advertise came up Amir Khan leaving for his village for job. His parents (and girl friend) are bound and kept in touch by Samsung phone Guru. Here the point being elaborated is the imotional importance of a phone. The night long talk with the girl friend high lights the fact that it has a lasting battery life. The market segment being targetted clearly is young people who are living away from their family and are 20-30 age band. This advertisement cleary hits the nerve.

Now that the brand Samsung, and its phone has come upto the mark, it is time for product extension and earn somemore. The latest advertisement talks about Amir Khan being promoted to a manager role, thus there is a "NEED" of multiple numbers, thus a need for multi-sim Samsung Guru. (Other advertisement about multi sim phones were not so effective in my view. They talked about the importance from the perspective of talking to two girl friends -or cheating). But Samsung's latest correctly hits the need side of a product.

On the similar lines the advertisements for Safola tend to show that they are not selling a product, they caring for your heart. Emotional bonding is a must for brand building.

So what is my learning today?

1. Brand equity, tough intangible, can be encashed.
2. There are genuine needs for brand extension. A brand manager should use only such opportunities instead of unnecessary proliferating the brand.
3. Brand positioning is a long term process and rewards are guaranteed in the long run.
4. Brand positioning sbould be in such a manner that is amuses the consumers and at the same time talks directly about their needs.
5. Brand positioning has a lot to do with bonding. If I visit a general store, as soon as I see edible oil, any packet reminds me of Safola, which apparently is better for my heart.

No more questions! We have answers now!

Instead of throwing questions, hurling answers in the form of slushy tomatoes and rotten eggs is so yesterday! We have been evolving a lot in this sphere of expression as well. But even before the latest invention in the arena of such confabulations--shoe pelting--gathered dust, we witnessed a brand new style of retort, the 'Pink Chaddhi Campaign'. The idea is to send a thousand 'pink chaddis' to Mr Muthalik, who proclaimed that no girl from a decent family will visit a pub--thereby asserted that those who misbehaved with the young women there in Mangalore were direct heir to the vestiges of decency--to make him understand the other facet of democracy which perhaps his book of morality doesn't approve of.

Thus 'Pink Chaddhi' campaign emboldens two aspects of the democracy. First, unless you hold a political pedestal, your any illogical demand or imposition will be retorted with an even bigger public commotion. Second, unless you have a big political clout you must refrain from being a moral science teacher. Such privileges are reserved for politicians only.

Well Mr Muthalik, now that you have learned your lessons hard way, I wish you a very very happy valentine's day. I wish on this day your frustration sees an end and some woman thinks that you deserve more than mere 'Pink Chaddhis' and snatches your bachelorhood--frustration--away from you.

I-M-Moral

The day whole India was earnestly waiting for the 60th anniversary commemorations of the republic day, which is known for auspicious institutionalization of our own constitution, somewhere in Mangalore a group of self proclaimed saviors of the religion, society and morality attacked on a pub and barked their sexist mentality out. They teased the same constitution we were waiting to celebrate for and rewrote their own disgraceful law book that legitimizes and emboldens such heinous crimes. Taliban are not confined to Swat valley or Northern part of the Pakistan. They are very much present in India too, albeit with the different name, color of worship and slogans. Their savagery in the name of lord Ram would have made Ram himself ashamed of his followers--not for the first time--who being blind folded due to their incompetency and impotency to do anything worthwhile, become stooges of their god fathers.

Why a culture needs goons to protect it? Why do we need retrogressive modality to save us from their called perdition? If the so called saviours of the Hinduism, who are completely oblivious to the true Indian culture known for its tolerance, define and impose morality on the gender basis, are they any different from terrorists who want to impose their whim on common helpless men? Despite public commotions, political protests--ostensible though--and so called non-bailable warrants perpetrators have been willfully committing despicable crimes in different forms such as attacks based on religious grounds on Christians , attacks based on language and territorial grounds on North Indians and attacks on women for someone's whimsical and quirked interpretation of morality.

Situation becomes complicated and alarming when people mould the conception of morality, religion and unsatiated ego according to their conveniences and mix it with vested interests of their accessories--Sangh Parivar. Sangh Parivar, working through its hydra headed branches has learnt its lesson from the Nazi experiment: gradually, spew communalism in the society, come in the power and continue their agenda of communal divide in the name of a community. Such apparent saviours of morality or society most often employ hooligans and rowdies and channelize them to create public unrest. Their idea is to have as much visibility as they can possibly get and then get job of their interest from those who want their services. This is exactly what hidden gunda organizations did previously. Now the organization part has been embellished with religious sentiments and power has been arranged through political impunity.

Wish along with millions of Gods and Goddesses we have had that Greek Goddess who could transform enemies to harmless animals. In my surreal fantasy I would have suggested that they be converted to pigs.

Since the rot of hooliganism has percolated from top to bottom, snuffing the rubbish out from the bottom is neither possible nor it will help ameliorate the condition. How I wondered that ours is a matured democracy that can peacefully vote their opinion through ballot rather than bullet and change the fate of the nation--as it did in 2004 when we voted out BJP. It appears hypocrisy now. Indian democracy has come to a phase where such squabbling anarchist groups are challenging law and order and are still untouched. Such self proclaimed heirs of the Hinduism are continuously leeching the still left humanity, tolerance and rationality and infusing the venom of division.

The only solution to such issues is public awakening! Time has again come to show the power of clenched fist instead of five different fingers. It was the clenched fist of civilians that pushed the English out from this country! It was the clenched fist of angry crowd and unarmed policeman that eventually captured one terrorist alive! Let's add gritting teeth to clenched fists before the pernicious trend of senas grapples with the law and order, which is now a mere impotent spectator, and marches with heaved pride towards talibanaziation of India.

Slumdog Indianism!

By appreciating 'Slumdog Millionaire' we have proved once again that India is a country fraught only with poverty and goons. We did it earlier too! We appreciated 'The white tiger', which too focused on the poverty, corruption and people with small bellies. Champions of 'Slumdog Millionaire' claimed to clap upon the wonderful acting and a new gripping storyline, however, an unbiased scrutiny is imperative to see if the artistic merits of the movie absolve it of its reprehensible cum organized cinematic terror on Indian dignity.

They uttered, "Ah! This is what we call a non formula movie." Is it really a non formula movie? Or the formula is to show India a country swamped with malaria, corruption, child abuse and contaminated water; a country where filth is quietly accepted as general part of the life; a country where prostitution is a vocation; and you have an award winning movie. Another commonality was the cliche, which apparently was sanctioned for so called different movie, that hero wins the heroine in the end not matter what may come. The movie, as the English believe, portrays realistic image of India and withers the claims of India Shining. However, the scene where a boy swathed in filth manages to have Mr Amitabh's autograph is a far fetched reality. Although the triumphant countenance of the boy after getting the autograph of the personality he deified, deserves a standing ovation. The movie boasts of the surrealistic plot, albeit good and riveting, in which a slum dweller eventually becomes a millionaire--thanks to his slum upbringing -- but in actuality it is rife with trivialities such as female's sacrifice to save her beloved, melodramatic change of heart of the brother of the protagonist, and love standing victorious notwithstanding many hardships. The movie is also punctuated by many flaws such as a by standing blind beggar knowing of Benjamin Franklin or Jamal's learning of Samual Colt just because Salim owns a gun or the fluent English a slum dweller spoke. Further, I perhaps will never be able to understand Boyel's fascination for faeces. Was Train Spotting not enough?

On the dialogues front, the movie hits India where it hurts. The movie starts with an idiot police man coercing Jamal to confess to the crimes he never did. When the police beats Salim for his hoodwinking the American tourists, Salim delivers, "Do you want to see real India? Here it is". Then American tourists were shown to save the boy just to mollycoddle the shitheads sitting on the other corner of the world. Neither of the perspective is absolutely correct as the movie manages to prove. But by showing that a slum dweller is conveniently ignorant about his own country--he doesn't know what is written over lions; he doesn't know who is there in Rs 1000 note--but he coincidentally knows everything pertinent to the American world. If Boyel wanted to show our allegiance towards America or the movie was made for American appeasement, well I am not party to such conception.

The motives of English movie makers behind ostentatious portrayal of only what doesn't glitter in India is quite clear. It is to serve what sells in the outer world, which gloats when India is again and again called a third world country. There was a time the world wanted to seek snake charmers, rope walkers, and roadside magicians, but now the taste has changed. They want to see real India replete with gansters, eye gouging goons and people living in abject conditions. And the movie serves them exactly that on hot platter. All said about others, the motives of Indian writers were quite inexplicable. The disposition of King Khan also was not understandable when he thanked his heart out to Danny Boyel for shooting slums in Mumbai. I am sure it would have been impossible to watch 'Slumdog Millionaire' for an Indian sitting in the 'glittering' part of the world. The only thing such movies do is disfigure India's dignity. I wonder how many blows to our bruised dignity are needed to make us finally understand what to clap upon!

A-Satyam Saga : A Satire

Not so long ago, there lived an Ohio State University MBA who founded a company named Satyam Computer Services in 1987. The name was initially coined as A-Satyam for the values his founder wanted to inculcate in the staff and hence in all the world over. But the way Kusum was named KKusum, A-Satyam was renamed to Satyam, thanks to the religious beliefs of its founder Mr. Ramlinga Raju. In spite of the name change, Mr. Raju, a man of unborrowed vision and rooted conviction, stood undeterred to the original traitorous plan.

It is also alleged that Mr Ramlinga Raju was inspired by the ostentatious display of inflated assets in sleazy clothes by Zeenat Aman in the movie Satyam Shivam Sundaram, and particularly by the exhibitionism in the title song. "I planned my business plan of doctoring the balance sheets while watching the heaved assets in the movie. I was then sure that such acts do work", told Mr Raju to a news correspondent who did not wish to be named.

That Mr Raju has been arrested has put a question mark on such a valued institution, which continued helping India's financial establishments by generating funds effectively from no-where and in turn infusing liquidity to a halting economy. The outcry over his abortive acquisition plan of Maytas--Satyam spelled backwards or ASatyam-- too is altogether unjustifiable. Didn't he just follow the well admired concept of family first? All in all, Mr Raju should have been thought of for the post of Finance Minister. Who knows we might outdo 1970's USA!

On the other side of the border, Pakistan--even before Mr Singh & Mr Mukherjee start a world poll to prove Pakistan's complicity in the matter--has denied of its involvement and has called Mr Raju's resignation an act of cowardice. Mr Asif Ali Jardari also alluded to the examples where Pakistani politicians did not succumb to their conscience and continued working on their harebrained ideas. On the contrary, Pakistan's finance minister Shaukat Tarin has admitted that Mr Raju is a Pakistani national and no solid proof is required to corroborate the same. It is reported that he aspires to work with Mr Raju in tandem so as to inflate Pakistan's bankrupt economy.