A very interesting article on the role of the Chief Marketing Officer by Gail McGivern and Jack Quelch.(click title to read)
I enjoy reading John Quelch, who is a professor of marketing at Harvard Business School.
I would have liked more emphasis on the need for the CMO to strenghten his understanding and execution of 4Ps. Thats the basis of marketing executions. (specificaly the Pricing P, from which most CMOs remain detached).
A very holistic read for students of marketing.
Venkat
Friday, 27 February 2009
Starbucks's Via
So Starbucks has launched an instant coffee branded Via. (click story title to read) About one dollar per cup...you prepare it by adding hot (or cold ) water... where ever you want to drink it. You can only buy the Starbucks Via packets at Starbucks outlets.
Interesting. But we dont think its a useful idea.
Starbucks supposedly attributes this idea to ensuring consumers are in touch with it even in these challenging economic times, as well as drive penetration of its coffees.
We ask the question... why do folks drink at Starbucks?
1. We dont think its the coffee. Maybe a lot of folks think its the best coffee in the world, we believe its the ambiance. The experience of finding a "third place" away from home and office.
Starbucks Via encourages you to make your coffee where you want to drink it, cheap. Unless you really really love the coffee flavor, why would you spend 1$ to drink it in your office cubicle or on the couch?
2. Its participating in a brand. This is important...by drinking at a Starbucks or taking out a coffee in a Starbucks cup, you're participating in the brand. Connectivity with a sense of empowerment. (http://rituvenkat12.blogspot.com/2008/07/connectivity-and-empowerment.html)
Great brands do this. They allow you a duality of your personal space while giving you the freedom to connect to the wider community that uses the brand. think iPod/ Nike.... your iPod has your music...its personal...but when you carry your iPod around, you are making a statement to others.
Starbucks does this (did this?) with its coffee.
Drinking a Via in my IBM mug is not the same thing. We are not connecting with the brand anymore. We will not be able to justify the premium anymore.
Unless we really really think its great coffee. We dont.
If millions of people are drinking Starbucks for the great coffee flavor and really miss that, Via will work.
If not, we think this is a flawed idea. Great for short term sales, it will not work in the medium to long term.
If you wish to read more on this please head to link below.
http://blogs.harvardbusiness.org/quelch/2009/02/how_starbucks_via_helps_consum.html
Ritu and Venkat
Interesting. But we dont think its a useful idea.
Starbucks supposedly attributes this idea to ensuring consumers are in touch with it even in these challenging economic times, as well as drive penetration of its coffees.
We ask the question... why do folks drink at Starbucks?
1. We dont think its the coffee. Maybe a lot of folks think its the best coffee in the world, we believe its the ambiance. The experience of finding a "third place" away from home and office.
Starbucks Via encourages you to make your coffee where you want to drink it, cheap. Unless you really really love the coffee flavor, why would you spend 1$ to drink it in your office cubicle or on the couch?
2. Its participating in a brand. This is important...by drinking at a Starbucks or taking out a coffee in a Starbucks cup, you're participating in the brand. Connectivity with a sense of empowerment. (http://rituvenkat12.blogspot.com/2008/07/connectivity-and-empowerment.html)
Great brands do this. They allow you a duality of your personal space while giving you the freedom to connect to the wider community that uses the brand. think iPod/ Nike.... your iPod has your music...its personal...but when you carry your iPod around, you are making a statement to others.
Starbucks does this (did this?) with its coffee.
Drinking a Via in my IBM mug is not the same thing. We are not connecting with the brand anymore. We will not be able to justify the premium anymore.
Unless we really really think its great coffee. We dont.
If millions of people are drinking Starbucks for the great coffee flavor and really miss that, Via will work.
If not, we think this is a flawed idea. Great for short term sales, it will not work in the medium to long term.
If you wish to read more on this please head to link below.
http://blogs.harvardbusiness.org/quelch/2009/02/how_starbucks_via_helps_consum.html
Ritu and Venkat
Wednesday, 25 February 2009
What Luxury Brands Can Learn from the Oscars
We picked up the above note on the Harvard blog. Wonderful note and very appropriately timed. We have been thinking about this for a while. In a challenging economic environment, what should a Louis Viutton do? The list from Lisa Burrell (click above note) lists some points, we added two more.
1. Luxury brands should reset their expectations in these times. Fewer consumers are in the market for luxury goods. But behavior patterns are set early in life and unless this recession lasts half a decade, folks will come back to buying luxury when it gets better.
Until then accept that there are fewer buyers out there and sales will fall.
This expectation is important becasue it prevents the brand from doing something silly to "buy" artificial sales. Do not lose focus on segmentation- targeting- positioning. You lose this and your consumers will never be able to find their way back to you in the good times.
2. Stay close to consumers that want to buy. Marketing is about getting new consumers and/or getting current consuers to buy more. If you're not finding the new ones, stay very close to the existing consumers. Be relevant to them, keep them excited in new products (dont cut investment in R&D and marketing) and make them feel exta special (if you have not cut down your customer facing emplyees already).
We suppose there are enough luxury goods CEOs that would have seen several of these cycles...and wouldn't be in a panic yet. We would be interested to know what they're thinking about.
In any case, we would not count on finding bargains in the luxury segment anytime soon.
Ritu and Venkat
1. Luxury brands should reset their expectations in these times. Fewer consumers are in the market for luxury goods. But behavior patterns are set early in life and unless this recession lasts half a decade, folks will come back to buying luxury when it gets better.
Until then accept that there are fewer buyers out there and sales will fall.
This expectation is important becasue it prevents the brand from doing something silly to "buy" artificial sales. Do not lose focus on segmentation- targeting- positioning. You lose this and your consumers will never be able to find their way back to you in the good times.
2. Stay close to consumers that want to buy. Marketing is about getting new consumers and/or getting current consuers to buy more. If you're not finding the new ones, stay very close to the existing consumers. Be relevant to them, keep them excited in new products (dont cut investment in R&D and marketing) and make them feel exta special (if you have not cut down your customer facing emplyees already).
We suppose there are enough luxury goods CEOs that would have seen several of these cycles...and wouldn't be in a panic yet. We would be interested to know what they're thinking about.
In any case, we would not count on finding bargains in the luxury segment anytime soon.
Ritu and Venkat
Monday, 23 February 2009
flagship stores.... your brand's playground for its consumers
Ok, so this thought came to us at a Pizza Hut restaurant in Bangalore.
But thats the point.
A flagship store goes beyond categories/ products. Its a MUST DO for a company trying to establish/ differentiate and most definitely educate itself in the eyes of the consumer.
The Cunningham Road Pizza Hut opened almost 10 years ago. It was back then a luxury / fine dining experience. Exotic food and pretty steep prices. Cunningham Road is also one of the chic streets in Bangalore, so Pizza Hut opening there was appropriate and exciting. The store was modern...sleek design and furniture and clearly consistent with an international brand.
We went to lunch there yesterday. The pizzas were great, service wonderful, but the store itself so run down. It was sad.
This is a product category still to establish itself. A flagship store for Pizza Hut would have been a great brand builder.
- weekend activities ...design a pizza (and the best pizza gets put on the menu for one month)
- An exotic flavored Pizza..only for the weekend.
- Learn to make a pizza with our chef!
- Pizza making contest among our chefs (see it in the see through kitchen)
So much excitement can be built around a pizza/ or a coffee shop (Starbucks/ Coffee day?).... and it cant always be replicated at all stores..which is why we have the concept of a flagship store.
In how many ways can your brand engage/ entertain/ educate your consumer?
A flagship is a microcosm...a small world you can create for consumers to see the possibilities with your brand.
Go do it.
Ritu and Venkat
But thats the point.
A flagship store goes beyond categories/ products. Its a MUST DO for a company trying to establish/ differentiate and most definitely educate itself in the eyes of the consumer.
The Cunningham Road Pizza Hut opened almost 10 years ago. It was back then a luxury / fine dining experience. Exotic food and pretty steep prices. Cunningham Road is also one of the chic streets in Bangalore, so Pizza Hut opening there was appropriate and exciting. The store was modern...sleek design and furniture and clearly consistent with an international brand.
We went to lunch there yesterday. The pizzas were great, service wonderful, but the store itself so run down. It was sad.
This is a product category still to establish itself. A flagship store for Pizza Hut would have been a great brand builder.
- weekend activities ...design a pizza (and the best pizza gets put on the menu for one month)
- An exotic flavored Pizza..only for the weekend.
- Learn to make a pizza with our chef!
- Pizza making contest among our chefs (see it in the see through kitchen)
So much excitement can be built around a pizza/ or a coffee shop (Starbucks/ Coffee day?).... and it cant always be replicated at all stores..which is why we have the concept of a flagship store.
In how many ways can your brand engage/ entertain/ educate your consumer?
A flagship is a microcosm...a small world you can create for consumers to see the possibilities with your brand.
Go do it.
Ritu and Venkat
dont despair marketers, sometimes life stands still....
It happened with me twice.
I was stood still in front on an elevator for the umpteenth time in my life. But this was in a mall in Bangalore was different.
The elevator was fully painted with an advertisement for a property developer. In the 3 minutes i waited, i lernt of the various properties this developer had built in Bangalore, his upcoming projects and contact details.
Ritu and I were impressed by the use of my time.
Then, during an interval at the movies, i went to the rest room. Very clean (for a change). And just above the urinals, i saw more ads. In the two minutes i was stood there, i learnt about upcoming movies, thier plots and key actors.
And i asked myself why i would not advertise more products in this space. Especially products that were looking to educate consumers with information. I would have their undivided attention.
Ritu and I believe, if marketing managers need to find places where life stands absolutely still and they have their consumers undivided attention, lifts and well maintained toilets are not bad options.
Anything else comes to mind?
Venkat and Ritu
I was stood still in front on an elevator for the umpteenth time in my life. But this was in a mall in Bangalore was different.
The elevator was fully painted with an advertisement for a property developer. In the 3 minutes i waited, i lernt of the various properties this developer had built in Bangalore, his upcoming projects and contact details.
Ritu and I were impressed by the use of my time.
Then, during an interval at the movies, i went to the rest room. Very clean (for a change). And just above the urinals, i saw more ads. In the two minutes i was stood there, i learnt about upcoming movies, thier plots and key actors.
And i asked myself why i would not advertise more products in this space. Especially products that were looking to educate consumers with information. I would have their undivided attention.
Ritu and I believe, if marketing managers need to find places where life stands absolutely still and they have their consumers undivided attention, lifts and well maintained toilets are not bad options.
Anything else comes to mind?
Venkat and Ritu
Thursday, 19 February 2009
Microsoft Retail Stores
(click on title)
Attaboy!
Way to go MS.
Control over distribution is a very very important element in marketing sophisticated products.
Zune/ X Box/ Windows.
Are these sophisticated?
Perhaps not. But MS can definitely make them.
Ritu and I use maybe 5% of Window's capabilities. We are not alone. An MS store is a great way to link with consumers who want to learn more about a product. (even if it is not their first choice, but then most of us are forced to use MS anyway)
MS can use the retail environment to educate consumers.
How about X Box. A retail environment is a good place to bring in the enthusiasts. Demo some new concepts...capabilities...have some expert gamers show their moves. It engages consumers.
And the Zune. Like the Xbox, its also a great platform to get closer to consumers. Entertain with its capabilities/ song options.
MS can definitely use a retail environment to build a community of users. This move is long overdue. Good luck!
Ritu and Venkat
Attaboy!
Way to go MS.
Control over distribution is a very very important element in marketing sophisticated products.
Zune/ X Box/ Windows.
Are these sophisticated?
Perhaps not. But MS can definitely make them.
Ritu and I use maybe 5% of Window's capabilities. We are not alone. An MS store is a great way to link with consumers who want to learn more about a product. (even if it is not their first choice, but then most of us are forced to use MS anyway)
MS can use the retail environment to educate consumers.
How about X Box. A retail environment is a good place to bring in the enthusiasts. Demo some new concepts...capabilities...have some expert gamers show their moves. It engages consumers.
And the Zune. Like the Xbox, its also a great platform to get closer to consumers. Entertain with its capabilities/ song options.
MS can definitely use a retail environment to build a community of users. This move is long overdue. Good luck!
Ritu and Venkat
No Way- No How- Not Here
Click on title to read.
We find the International Herald Tribune a wonderful place for interesting and well written opinions.
This note by Thomas L. Friedman is on the sentiment among Indian muslims post the attach in Mumbai.
We are very proud of how India has risen against the attack. All Indians. The muslims who condemned it immediately and strongly and every other religion that stood up together against the enemy.
For once, Indians did not point fingers at other Indians.
Why did this not happen before? When the bombs went off in Delhi/ Hyderabad/ Bangalore... or at the time of the Babri Masjid incident?
Anyway, at long last, we seem to have found our voice as a nation. Lets not lose it.
We find the International Herald Tribune a wonderful place for interesting and well written opinions.
This note by Thomas L. Friedman is on the sentiment among Indian muslims post the attach in Mumbai.
We are very proud of how India has risen against the attack. All Indians. The muslims who condemned it immediately and strongly and every other religion that stood up together against the enemy.
For once, Indians did not point fingers at other Indians.
Why did this not happen before? When the bombs went off in Delhi/ Hyderabad/ Bangalore... or at the time of the Babri Masjid incident?
Anyway, at long last, we seem to have found our voice as a nation. Lets not lose it.
The Shopper Of Tomorrow- Trading Down
(click on title to read) While the article is very provocatively titled, it does debate the issue with multiple perspectives.
The note poses a couple of interesting questions:
-Given the strength of the recession in Western markets, will the shopper of tomorrow really trade down?
- How do you define "tomorrow"? The next 6 months...the 2 years following a recovery?
Our stand on the debate is this:
Consumer buying habits, we believe, are established by the time he (she) is 18.
By that age, prpensity to shop/ save/ take risks are pretty well established. Only deep and sever (long term) shocks can then impact or change habits. We describe long term as not less than 5-6 years. This is our judgement.
Consumers in Western Europe and America have lived through a number of boom-bust cycles. No one in a boom cycle holds back expecting a recession. And pretty soon after a recovery, people return to their "natural state".
For example (and we pick this from the article) air travel and consumer spending pretty much rebounded after the dot com bust and the shock post 9/11.
Most people we have spoken to have decided to "postpone" purchase of the watch/ home or car they were planning. No one has yet spoken of downtrading to a motor cycle yet.
We believe marketers that plan for an economy to downtrade will be rather unprepared for the upswing.
On the other hand, and this should be interesting to observe, young people of the age of 12-16 in the US and Europe today will possibly behave very differenetly as consumers through their lifetimes.
"Marketers", notes the article, "do not ignite consumerism, but respond to the urge that comes from within. That comes from the interplay of society and the values and norms of the culture."
The great depression was long enough and severe enough for several generations to be impacted and be conscious of keep savings and consuming habits in balance.
In the absence of such a deep depression, we do not see tectonic shifts in consumer behavior.
Ritu and Venkat
A parallel note of interest: (Financial decisions are influenced by early experiences) http://www.economist.com/finance/displaystory.cfm?story_id=12903074&fsrc=rss
The note poses a couple of interesting questions:
-Given the strength of the recession in Western markets, will the shopper of tomorrow really trade down?
- How do you define "tomorrow"? The next 6 months...the 2 years following a recovery?
Our stand on the debate is this:
Consumer buying habits, we believe, are established by the time he (she) is 18.
By that age, prpensity to shop/ save/ take risks are pretty well established. Only deep and sever (long term) shocks can then impact or change habits. We describe long term as not less than 5-6 years. This is our judgement.
Consumers in Western Europe and America have lived through a number of boom-bust cycles. No one in a boom cycle holds back expecting a recession. And pretty soon after a recovery, people return to their "natural state".
For example (and we pick this from the article) air travel and consumer spending pretty much rebounded after the dot com bust and the shock post 9/11.
Most people we have spoken to have decided to "postpone" purchase of the watch/ home or car they were planning. No one has yet spoken of downtrading to a motor cycle yet.
We believe marketers that plan for an economy to downtrade will be rather unprepared for the upswing.
On the other hand, and this should be interesting to observe, young people of the age of 12-16 in the US and Europe today will possibly behave very differenetly as consumers through their lifetimes.
"Marketers", notes the article, "do not ignite consumerism, but respond to the urge that comes from within. That comes from the interplay of society and the values and norms of the culture."
The great depression was long enough and severe enough for several generations to be impacted and be conscious of keep savings and consuming habits in balance.
In the absence of such a deep depression, we do not see tectonic shifts in consumer behavior.
Ritu and Venkat
A parallel note of interest: (Financial decisions are influenced by early experiences) http://www.economist.com/finance/displaystory.cfm?story_id=12903074&fsrc=rss
Thursday, 12 February 2009
The Pope Said Nothing- By Mario Kaiser Published: February 11, 2009 in the IHT
PLease click the title to read this very well written note.
Ritu and Venkat
Ritu and Venkat
Dido's news album- Meru Cabs and a lost marketing opportunity
Ritu received a complementary CD of Dido's new release Safe Trip Home.
This CD was sent by Meru Cabs... a taxi service in India.
We thought it was a brilliant idea for a taxi company to send a CD titled "Safe Trip Home" to its women customers, given that the security of lone women passengers in India is such a concern.
But here is the problem.
The lyrics dont really tie in with Meru's idea of linking the CD to a safe trip home in a Meru taxi.
What the package missed was some communication around safety for women when traveling alone.
- some tips before you get into a taxi...
- a help line to call in case of an emergency....
- some emergency self defence ideas....
By tying in concern for women passengers and demonstrating what it was doing to make their journey safe, Meru could have taken a very strong postion.
Sony BMG's cross promotional team did a great job in roping in Meru taxis for the launch. But Meru goofed up in not maximising this opportunity.
Great brands engage, educate, entertain.
Meru truly engaged and entertained us by sending this appropriately titled CD. An opportunity to educate the consumer was lost. A pity.
Ritu and Venkat
This CD was sent by Meru Cabs... a taxi service in India.
We thought it was a brilliant idea for a taxi company to send a CD titled "Safe Trip Home" to its women customers, given that the security of lone women passengers in India is such a concern.
But here is the problem.
The lyrics dont really tie in with Meru's idea of linking the CD to a safe trip home in a Meru taxi.
What the package missed was some communication around safety for women when traveling alone.
- some tips before you get into a taxi...
- a help line to call in case of an emergency....
- some emergency self defence ideas....
By tying in concern for women passengers and demonstrating what it was doing to make their journey safe, Meru could have taken a very strong postion.
Sony BMG's cross promotional team did a great job in roping in Meru taxis for the launch. But Meru goofed up in not maximising this opportunity.
Great brands engage, educate, entertain.
Meru truly engaged and entertained us by sending this appropriately titled CD. An opportunity to educate the consumer was lost. A pity.
Ritu and Venkat
Wednesday, 11 February 2009
The Kindle 2
We're impressed with the thinking behind the new Kindle that was released on Feb 9.
Its an electronic reader...so you get to read books/ magazines/ blogs on a hand held device. You have access to over 200,000 books at 9.99 $ (its available in the US at this time, on Amazon).
Now what makes this unique? It has a wireless connectivity that allows you to subscribe to newspapers/ blogs/ magazines... and have all fresh content directly uploaded to your machine.
We read a lot on the move, think this feature is wonderful.
Wireless service integration into a device.
So from an electronic reader, the kindle is moving into an information service for the owner.
What business are we in? (What is the problem our consumer wants solved?
Fundamental question that creates opportunity.
Ritu and Venkat
Its an electronic reader...so you get to read books/ magazines/ blogs on a hand held device. You have access to over 200,000 books at 9.99 $ (its available in the US at this time, on Amazon).
Now what makes this unique? It has a wireless connectivity that allows you to subscribe to newspapers/ blogs/ magazines... and have all fresh content directly uploaded to your machine.
We read a lot on the move, think this feature is wonderful.
Wireless service integration into a device.
So from an electronic reader, the kindle is moving into an information service for the owner.
What business are we in? (What is the problem our consumer wants solved?
Fundamental question that creates opportunity.
Ritu and Venkat
Superbowl ad review (click title to see the slideshow)
Got around to seeing the ads...17 in all.
Here is what we think:
- If these are the best ads that were created for the Super Bowl, some folks in the communication and advertising business should find other professions.
- perhaps, we were very critical because these were made for an American audience and maybe we did not get the humor. Possible. But the ads sucked big time.
We list the three that stood out-
7. Cheetos - interesting idea, not sure how it supports the brand.
http://images.businessweek.com/ss/09/02/0201_superbowl_ads/7.htm
8. Coke - very creative execution - thats all
http://images.businessweek.com/ss/09/02/0201_superbowl_ads/8.htm
13. Pepsi Max- interesting concept
http://images.businessweek.com/ss/09/02/0201_superbowl_ads/13.htm
Nothing stood out as "Wow". Perhaps the creative folks are moving away from TV advertising?
Point to ponder.
Ritu and Venkat
Here is what we think:
- If these are the best ads that were created for the Super Bowl, some folks in the communication and advertising business should find other professions.
- perhaps, we were very critical because these were made for an American audience and maybe we did not get the humor. Possible. But the ads sucked big time.
We list the three that stood out-
7. Cheetos - interesting idea, not sure how it supports the brand.
http://images.businessweek.com/ss/09/02/0201_superbowl_ads/7.htm
8. Coke - very creative execution - thats all
http://images.businessweek.com/ss/09/02/0201_superbowl_ads/8.htm
13. Pepsi Max- interesting concept
http://images.businessweek.com/ss/09/02/0201_superbowl_ads/13.htm
Nothing stood out as "Wow". Perhaps the creative folks are moving away from TV advertising?
Point to ponder.
Ritu and Venkat
Tuesday, 3 February 2009
The interview question you should ask
http://blogs.harvardbusiness.org/cs/2009/01/the_interview_question_you_sho.html
this note is built on the above note by Peter Bregman (in the Harvard Business Conversation Starter.)
An interesting write up which ties in with the 10,000 hour rule given in Malcolm Gladwell’s book ‘Outliers’. (tks for poiting that out Surya JVS)
What Peter is saying is that if you are passionate about what you do, you end up finding ways to pursue that passion outside work. The activites during and out of office hours then re-inforce each other to help you gain more expertise in your chosen field.
For example and I quote: "In Captain Sullenberger's case (he landed a pretty big plane on the Hudon river recently), the first clue that he would become Captain Sullenberger the hero is that, in his teens, when most of his friends were getting their driver's licenses, he got his pilot's license. What did he do for fun? He flew glider planes. Which is basically what he did when he landed in the Hudson River with no engines"
Peter indicates a few more examples to say that what we do in our leisure could (and he says COULD) tell us of our commitment to our chosen field and hence a good question to ask is what you do in your leisure time.
We're writers on Marketing and Sales. We meet a lot of people in this line of work. The truly outstanding ones do sales and marketing in their spare time. They're not at work 24/7. But they're working on their blogs...their favourite charities...helping friends in start-ups...participating in lectures on marketing and sales.... they practice their craft in different ways. Thats the beauty about them.
Sure, they dont have great stamp collections, or may not Salsa very well...but they're happy with a passion...its not their fault they are paid for what they are passionate about. And they are the best at what they do. Know the trends, know the new ideas, critique them...
We think its a good question to ask, and you have shown the relevance of the question beyond what we understood.
thanks
Venkat
this note is built on the above note by Peter Bregman (in the Harvard Business Conversation Starter.)
An interesting write up which ties in with the 10,000 hour rule given in Malcolm Gladwell’s book ‘Outliers’. (tks for poiting that out Surya JVS)
What Peter is saying is that if you are passionate about what you do, you end up finding ways to pursue that passion outside work. The activites during and out of office hours then re-inforce each other to help you gain more expertise in your chosen field.
For example and I quote: "In Captain Sullenberger's case (he landed a pretty big plane on the Hudon river recently), the first clue that he would become Captain Sullenberger the hero is that, in his teens, when most of his friends were getting their driver's licenses, he got his pilot's license. What did he do for fun? He flew glider planes. Which is basically what he did when he landed in the Hudson River with no engines"
Peter indicates a few more examples to say that what we do in our leisure could (and he says COULD) tell us of our commitment to our chosen field and hence a good question to ask is what you do in your leisure time.
We're writers on Marketing and Sales. We meet a lot of people in this line of work. The truly outstanding ones do sales and marketing in their spare time. They're not at work 24/7. But they're working on their blogs...their favourite charities...helping friends in start-ups...participating in lectures on marketing and sales.... they practice their craft in different ways. Thats the beauty about them.
Sure, they dont have great stamp collections, or may not Salsa very well...but they're happy with a passion...its not their fault they are paid for what they are passionate about. And they are the best at what they do. Know the trends, know the new ideas, critique them...
We think its a good question to ask, and you have shown the relevance of the question beyond what we understood.
thanks
Venkat
Sunday, 1 February 2009
Uneasy lies the head.... a short story
Uneasy lies the head that wears the crown.
He knocked gently on the door, but got no response.
‘Son’, said the father softly first and then more firmly. ‘Open the door. Please.’
‘Go away !’ , said a feeble voice from inside. ‘I don’t want to see anybody.’
‘But you must let me come in. We must speak about this.’
‘No !,’ shouted back the voice. And switched on the stereo. The volume made his intentions very clear.
Aggravated, the father turned the door knob and found the door opening readily.
‘Son’, he said again, ‘be sensible. Let me help you.’ His son now reached for his headsets.
The father shot out his hand, grabbed the headsets away. Then, in a fit of rage slapped the stereo shut.
The son was taken aback. His father had seldom reacted this way.
Perhaps the father should have been more liberal with the stick. Now, his son, stubborn, was used to having his way with people around him and did not handle adverse opinions very well.
‘Son’, said the father again, bringing his rage under control and feeling very sorry he had not controlled himself better. He wanted to be seen as a good role model and it would not do to lose self restraint when dealing with his son.
‘Your mother said you poured milk over your jacket so you wouldn’t have anything to wear to school. You are making a new excuse everyday to miss school. Yesterday you hid your clothes away so we couldn’t find them. Today this. On Monday you said school had been closed due to the snow. All lies. It cannot go on like this. Be brave. You must go to school son’, said the father.
‘I will not’, was the immediate reply. ‘They all hate me. All the other boys and girls make fun of me. Nobody loves me.’
‘They do’, said the father, scratching his forehead thoughtfully, slowly. ‘They do. Everybody loves you.’
‘No’, was once the stubborn response. ‘Only you think so. Yesterday, I saw on the desk one of the boys had scribbled a drawing of me. With no front teeth, a geek hat, and pot belly. They make fun of me for my height. The call me Stiffy because I don’t smile and walk erect. I feel so different. I will never go back.’
The father nodded as in agreement. His son had been saying that for many days now, but always ended up going. This week things had taken a turn for the worse. He would need professional help soon. The attitude was not positive. The father felt frustrated at his inability to do anything.
‘Son,’ he said. ‘We are different. So is everyone else. Isn’t that the beauty of life ? You should be so happy to be with different people. You are so special. I am special. Be proud of that and share that feeling.’
‘Why should I be happy ?’, was the prompt retort. ‘I am not special. You keep telling me that. Tell me why I am special.’ He crossed his arms and sulked, staring angrily out of his window. There was a soft snow falling, but the ice in his bitter heart was harsh.
The father felt sad for his son. And tried to encourage him. ‘Remember’, he said, ‘of the time you set up the computer for me. I simply had no idea how to do it. And it was you who got mummy and me to use the cell phone. And DVD player. You are so intelligent. And you teach us so much at your age.’
The son looked up. His father saw he was making progress. There was good in everyone. Always enough to be proud of. He would help his son make it through this.
‘But’, continued the son in his attempt to hear more about himself, ‘that doesn’t impress people at school. They want to know if I can tell jokes, sing and dance and get drunk at the parties’.
‘Maybe you should do that’, said his father. ‘I mean, tell a few jokes, sing some songs, dance…It can’t be so difficult can it ? But keep away from the smoke and drinks. It is a bad habit.’
‘Ok…go on’, taunted the son, ‘tell me a joke. Let me see how well you do.’
The father winced. He was no good at this. Young Stiffy was a chip off the ol’ block. But he racked his brain to come up with something. ‘Well’, he began, ‘you could tell them that your father says your mother is an avid writer. She writes cheques all day long ! ! !’ He grinned feebly, hoping the son could see the funny side to his pathetic attempt.
Their eyes did not meet for a while. The father twiddled his thumbs restlessly. There must be a better way he thought.
He tried again. ‘I heard yesterday that there are national weeks celebrated in your school. Have you tried to participating those ? They must be so much fun.’
‘No’, said the son, ‘its only for the larger countries. Like the Indian students, the French, British and the American students. The rest of us just watch and enjoy the show. ‘
‘Isnt that good enough ?’
‘No.’
‘But I am sure you are learning so much. I hope you are associating with the Indian boys.’
‘What ? ? They are a nightmare. The dumbest bunch I have ever seen. I think they will all fail and the school will be held to some conspiracy theory for failing Indians. People worry about brain drain…..this bunch is a great example of drained brains. Please, don’t speak about them.’
The father bit his lip. Surely , he thought, there must be a silver lining to this dark cloud called school.
‘Ok’, he ventured again, ‘ but what about the French ?’
‘Je ne comprend pas ! ! ! ! Je ne sais pas ! ! ! ! Its all ‘n’est pas’ with them’, he said , his face contorted mockingly . ‘And most of them stop working half way through the day anyway…..supposedly some law that says they need work only 35 hours a week.
‘Ask me again papa, why I don’t want to go to school.’
‘Son’, said the father, ‘you must try and participate. You must cooperate. Every school has its challenges. You cant run away from them. I know how you feel.’
‘No you don’t ! You cannot even begin to imagine the exclusion I face everyday from the other kids. ‘
‘Surely you have met some challenging students here ?’, asked the father.
‘They’re all challenged’, came the irreverent reply.
The father gritted his teeth trying to kill the sudden bursts of anger this pointless conversation was building in him.
‘It seems my closest friends are Venkatesh, Devesh and Avijit. Much as I like them, it is so unnerving. Everyone now and then, these guys find empty seats near me and promptly sit there talking about themselves. All their worries. That’s all that matters to them. I nearly fell asleep on Dev’s shoulder last week. It is painful. I have had an overdoze of them. And no one else wants to talk to me.’
The father tried to change the subject of discussion.
‘What about the teachers ? I am sure they find you to be a hard working intelligent person.’
‘No. They hate me as well. The way they look at me, you would think they all think I am the cause of all their troubles. They ask me the most difficult questions and sometimes I think they ask me all their questions. One of them brings these post-it notes full of questions, tough ones.
Another ponders his questions rubbing his long grey beard. Looks at me like he can see into me and has decided I have a troubled childhood or something. Keeps saying I should meet him in his office after school hours. The other day, he was encouraging some students to drop eggs from the first floor windows. And one of the students looked at me in such a menacing way. I was scared father. The egg was going to become his weapon. Really scared.
The worst is the day after the teachers receive their pay checks. All I get is glares and snide remarks when I get the answers all muddled up. They act as if I am the cause of all their grief. What did I do?’
‘Maybe’, said father, ‘you should make friends with the security guards. Surely someone will talk to you on your level.’ That wasn’t a very bright thing for father dear to say. The son looked at him with a pained look.
‘How about the girls ? Are you interested in anyone ?’
The boy drooped his head further into his shoulders.
‘I could talk to Mansi if she stopped dancing. But I’m not very good at it you know. ‘
The father was aghast to hear him speak this way.
‘But you are learning are you not ?’
‘Maybe I should have joined the army. Should I look to become a priest father, he asked ?
Show me he way.’
With that he fell into his father’s arms.
The father gently patted his boy’s head. ‘I know things look bad. But they always work out. Happened to me when I was at school. But I slowly made friends. I just had to keep trying. I was stiff too. But I just being nice and helped when I could…..and finally I was accepted.
Then when I thought all was well my schooling years ended and I enrolled at university. It was the same struggle all over again. Only more painful because I had to move away from home.
It was always the same, young man. Be good and be helpful, and you will find your place in the sun. Why, I met your mother at university and never felt luckier in life.
Just be brave and do your best. You are a lovable chap.’
The son brushed away his tears and kissed his father. ‘Ok dad’, he said, ‘but not today. Just give me one more day and tomorrow I will be ready to go again. I promise.’
The father smiled feebly, knowing he could do no more than hope for a better beginning the next day.
‘Ok son’, he said, ‘I believe you will be ready tomorrow.’
He stepped out of the room as he saw his son reach for the Game Boy console. MTV, Game Boy, texting……maybe these toys were all encouraging solitude.
The father walked to the kitchen. Mother, unfortunately was not too happy to see him come alone. She guessed the mission had been unsuccessful and to show her indignation, slapped his breakfast before him.
‘I tried you know’, he said.’He will be ready tomorrow’.
‘It cannot go on like this forever. He must learn to look after himself’, said mother.
The father poked at his scrambled eggs in a curious way, perhaps hoping that the eggs would give him the answer.
The phone rang and woke him from his stupor. He guessed it would be the school and prepared himself for the interrogation. ‘I’m just the father you know !’, he wanted to shout. ‘Ozzy Osbourne has more influence on my son than I. Call Ozzy, don’t call me !’
‘Hello’, he said into the phone.
‘Yes’, he replied to a comment on the other end.
‘I understand’, he continued, ‘you are concerned, and thank you very much for your support.
I have just checked in his room …….Yes…….. Yes, he will definitely be in tomorrow. No……a medical examination will not be required.’
Slowly, the conversation came to an end.
‘Yes Isabelle’, he lied firmly and finally,
‘Dean Pekka is still suffering from a stomach bug. But I’m sure he will be in school tomorrow.’
The old man hung onto the phone for a few minutes before returning to his cold and scrambled eggs.
venkat, 2004.
Insead, the coolest plot on the planet. No hard feelings, dean.
He knocked gently on the door, but got no response.
‘Son’, said the father softly first and then more firmly. ‘Open the door. Please.’
‘Go away !’ , said a feeble voice from inside. ‘I don’t want to see anybody.’
‘But you must let me come in. We must speak about this.’
‘No !,’ shouted back the voice. And switched on the stereo. The volume made his intentions very clear.
Aggravated, the father turned the door knob and found the door opening readily.
‘Son’, he said again, ‘be sensible. Let me help you.’ His son now reached for his headsets.
The father shot out his hand, grabbed the headsets away. Then, in a fit of rage slapped the stereo shut.
The son was taken aback. His father had seldom reacted this way.
Perhaps the father should have been more liberal with the stick. Now, his son, stubborn, was used to having his way with people around him and did not handle adverse opinions very well.
‘Son’, said the father again, bringing his rage under control and feeling very sorry he had not controlled himself better. He wanted to be seen as a good role model and it would not do to lose self restraint when dealing with his son.
‘Your mother said you poured milk over your jacket so you wouldn’t have anything to wear to school. You are making a new excuse everyday to miss school. Yesterday you hid your clothes away so we couldn’t find them. Today this. On Monday you said school had been closed due to the snow. All lies. It cannot go on like this. Be brave. You must go to school son’, said the father.
‘I will not’, was the immediate reply. ‘They all hate me. All the other boys and girls make fun of me. Nobody loves me.’
‘They do’, said the father, scratching his forehead thoughtfully, slowly. ‘They do. Everybody loves you.’
‘No’, was once the stubborn response. ‘Only you think so. Yesterday, I saw on the desk one of the boys had scribbled a drawing of me. With no front teeth, a geek hat, and pot belly. They make fun of me for my height. The call me Stiffy because I don’t smile and walk erect. I feel so different. I will never go back.’
The father nodded as in agreement. His son had been saying that for many days now, but always ended up going. This week things had taken a turn for the worse. He would need professional help soon. The attitude was not positive. The father felt frustrated at his inability to do anything.
‘Son,’ he said. ‘We are different. So is everyone else. Isn’t that the beauty of life ? You should be so happy to be with different people. You are so special. I am special. Be proud of that and share that feeling.’
‘Why should I be happy ?’, was the prompt retort. ‘I am not special. You keep telling me that. Tell me why I am special.’ He crossed his arms and sulked, staring angrily out of his window. There was a soft snow falling, but the ice in his bitter heart was harsh.
The father felt sad for his son. And tried to encourage him. ‘Remember’, he said, ‘of the time you set up the computer for me. I simply had no idea how to do it. And it was you who got mummy and me to use the cell phone. And DVD player. You are so intelligent. And you teach us so much at your age.’
The son looked up. His father saw he was making progress. There was good in everyone. Always enough to be proud of. He would help his son make it through this.
‘But’, continued the son in his attempt to hear more about himself, ‘that doesn’t impress people at school. They want to know if I can tell jokes, sing and dance and get drunk at the parties’.
‘Maybe you should do that’, said his father. ‘I mean, tell a few jokes, sing some songs, dance…It can’t be so difficult can it ? But keep away from the smoke and drinks. It is a bad habit.’
‘Ok…go on’, taunted the son, ‘tell me a joke. Let me see how well you do.’
The father winced. He was no good at this. Young Stiffy was a chip off the ol’ block. But he racked his brain to come up with something. ‘Well’, he began, ‘you could tell them that your father says your mother is an avid writer. She writes cheques all day long ! ! !’ He grinned feebly, hoping the son could see the funny side to his pathetic attempt.
Their eyes did not meet for a while. The father twiddled his thumbs restlessly. There must be a better way he thought.
He tried again. ‘I heard yesterday that there are national weeks celebrated in your school. Have you tried to participating those ? They must be so much fun.’
‘No’, said the son, ‘its only for the larger countries. Like the Indian students, the French, British and the American students. The rest of us just watch and enjoy the show. ‘
‘Isnt that good enough ?’
‘No.’
‘But I am sure you are learning so much. I hope you are associating with the Indian boys.’
‘What ? ? They are a nightmare. The dumbest bunch I have ever seen. I think they will all fail and the school will be held to some conspiracy theory for failing Indians. People worry about brain drain…..this bunch is a great example of drained brains. Please, don’t speak about them.’
The father bit his lip. Surely , he thought, there must be a silver lining to this dark cloud called school.
‘Ok’, he ventured again, ‘ but what about the French ?’
‘Je ne comprend pas ! ! ! ! Je ne sais pas ! ! ! ! Its all ‘n’est pas’ with them’, he said , his face contorted mockingly . ‘And most of them stop working half way through the day anyway…..supposedly some law that says they need work only 35 hours a week.
‘Ask me again papa, why I don’t want to go to school.’
‘Son’, said the father, ‘you must try and participate. You must cooperate. Every school has its challenges. You cant run away from them. I know how you feel.’
‘No you don’t ! You cannot even begin to imagine the exclusion I face everyday from the other kids. ‘
‘Surely you have met some challenging students here ?’, asked the father.
‘They’re all challenged’, came the irreverent reply.
The father gritted his teeth trying to kill the sudden bursts of anger this pointless conversation was building in him.
‘It seems my closest friends are Venkatesh, Devesh and Avijit. Much as I like them, it is so unnerving. Everyone now and then, these guys find empty seats near me and promptly sit there talking about themselves. All their worries. That’s all that matters to them. I nearly fell asleep on Dev’s shoulder last week. It is painful. I have had an overdoze of them. And no one else wants to talk to me.’
The father tried to change the subject of discussion.
‘What about the teachers ? I am sure they find you to be a hard working intelligent person.’
‘No. They hate me as well. The way they look at me, you would think they all think I am the cause of all their troubles. They ask me the most difficult questions and sometimes I think they ask me all their questions. One of them brings these post-it notes full of questions, tough ones.
Another ponders his questions rubbing his long grey beard. Looks at me like he can see into me and has decided I have a troubled childhood or something. Keeps saying I should meet him in his office after school hours. The other day, he was encouraging some students to drop eggs from the first floor windows. And one of the students looked at me in such a menacing way. I was scared father. The egg was going to become his weapon. Really scared.
The worst is the day after the teachers receive their pay checks. All I get is glares and snide remarks when I get the answers all muddled up. They act as if I am the cause of all their grief. What did I do?’
‘Maybe’, said father, ‘you should make friends with the security guards. Surely someone will talk to you on your level.’ That wasn’t a very bright thing for father dear to say. The son looked at him with a pained look.
‘How about the girls ? Are you interested in anyone ?’
The boy drooped his head further into his shoulders.
‘I could talk to Mansi if she stopped dancing. But I’m not very good at it you know. ‘
The father was aghast to hear him speak this way.
‘But you are learning are you not ?’
‘Maybe I should have joined the army. Should I look to become a priest father, he asked ?
Show me he way.’
With that he fell into his father’s arms.
The father gently patted his boy’s head. ‘I know things look bad. But they always work out. Happened to me when I was at school. But I slowly made friends. I just had to keep trying. I was stiff too. But I just being nice and helped when I could…..and finally I was accepted.
Then when I thought all was well my schooling years ended and I enrolled at university. It was the same struggle all over again. Only more painful because I had to move away from home.
It was always the same, young man. Be good and be helpful, and you will find your place in the sun. Why, I met your mother at university and never felt luckier in life.
Just be brave and do your best. You are a lovable chap.’
The son brushed away his tears and kissed his father. ‘Ok dad’, he said, ‘but not today. Just give me one more day and tomorrow I will be ready to go again. I promise.’
The father smiled feebly, knowing he could do no more than hope for a better beginning the next day.
‘Ok son’, he said, ‘I believe you will be ready tomorrow.’
He stepped out of the room as he saw his son reach for the Game Boy console. MTV, Game Boy, texting……maybe these toys were all encouraging solitude.
The father walked to the kitchen. Mother, unfortunately was not too happy to see him come alone. She guessed the mission had been unsuccessful and to show her indignation, slapped his breakfast before him.
‘I tried you know’, he said.’He will be ready tomorrow’.
‘It cannot go on like this forever. He must learn to look after himself’, said mother.
The father poked at his scrambled eggs in a curious way, perhaps hoping that the eggs would give him the answer.
The phone rang and woke him from his stupor. He guessed it would be the school and prepared himself for the interrogation. ‘I’m just the father you know !’, he wanted to shout. ‘Ozzy Osbourne has more influence on my son than I. Call Ozzy, don’t call me !’
‘Hello’, he said into the phone.
‘Yes’, he replied to a comment on the other end.
‘I understand’, he continued, ‘you are concerned, and thank you very much for your support.
I have just checked in his room …….Yes…….. Yes, he will definitely be in tomorrow. No……a medical examination will not be required.’
Slowly, the conversation came to an end.
‘Yes Isabelle’, he lied firmly and finally,
‘Dean Pekka is still suffering from a stomach bug. But I’m sure he will be in school tomorrow.’
The old man hung onto the phone for a few minutes before returning to his cold and scrambled eggs.
venkat, 2004.
Insead, the coolest plot on the planet. No hard feelings, dean.
SLEIGHT... avery short story (?)
SLEIGHT
If I stared at it long enough and hard enough, I could write a story about it. Or maybe fill a page describing it.
I could conjure its history. I could give it a life. A form- an entity- all imagined.
I could make it soar in the sky. Swim in shallow waters. Sing to its sweetheart. March onwards tirelessly. Row a boat gently over meandering waters. Blush. Savor the first rays of the rising sun. Reap a harvest. Devour mangoes. Play in the fields.
I could make it rest in its mother’s lap. Chat with its father. Be Superman. Tend cattle. I could show through it, the history of man. The futility of war. The grace of dolphins. Scavenging vultures.
Sailing boats. Screeching gulls.
The warmth of friendship. True love. Anger, jealousy, suspicion.
Truth and deceit. Valor and cowardice. Joy and tears.
If I tried hard enough, I could do it. And you would never know I was only describing a portrait of a steam train.
18th October, 2000.
In compartment C2 of the Shatabdi Express to Chandigarh.
Venkat
If I stared at it long enough and hard enough, I could write a story about it. Or maybe fill a page describing it.
I could conjure its history. I could give it a life. A form- an entity- all imagined.
I could make it soar in the sky. Swim in shallow waters. Sing to its sweetheart. March onwards tirelessly. Row a boat gently over meandering waters. Blush. Savor the first rays of the rising sun. Reap a harvest. Devour mangoes. Play in the fields.
I could make it rest in its mother’s lap. Chat with its father. Be Superman. Tend cattle. I could show through it, the history of man. The futility of war. The grace of dolphins. Scavenging vultures.
Sailing boats. Screeching gulls.
The warmth of friendship. True love. Anger, jealousy, suspicion.
Truth and deceit. Valor and cowardice. Joy and tears.
If I tried hard enough, I could do it. And you would never know I was only describing a portrait of a steam train.
18th October, 2000.
In compartment C2 of the Shatabdi Express to Chandigarh.
Venkat
what's your idea of protection? The National Insurance Company (India)
This ad in the newspapers caught our attention for two reasons.
1. it plays on a very Indian concept. Astrology/ numerology and such perspectives play a key role in how Indians plan for life/ marriage/ child birth/ careers.
Usually a "not so benign" planet in the horoscope casting an unfavourable influence is put right by a particular gem (precious stone) that seeks to mitigate the bad effect. Traditionally, this has been the notion of insurance in India.
The ad plays on this concept asking whether a life insurance policy will not cover a number of risks all at once. Our congratulations to the advertising/ marketing agency that identified and developed a creative around this.
2. The second reason was that while Ritu looked at the "thoda simple socho" (think simple) and "is this idea of protection" to make the connection to an insurance plan, i looked at all the precious stones on the fingers and believed this to be an ad for a jewellery shop.
Both of us agree that the execution of the idea could have been bolder, especially a stronger tag line and more immediate focus on the National Insurance Company.
Still a great idea. And follows the principle of my marketing professor Mithileshwar Jha, that products for the masses must be built bottom up. So a product like insurance must be built upon how the common man looks at his current insurance needs and solutions, rather than look at what a good solution is and start explaining the same. (although both should lead to the same end result, the former approach faces lower perception barriers)
ritu and venkat
Friday, 30 January 2009
Great leaders have great teams- Stefan Stern, FT
Leaders cannot do everything on their own. Leadership has to be “distributed” around the organisation, through delegation and the development of future leaders.
We thought this was very interesting, on leadership...reproducing it here with permission. (Published: January 12 2009 20:33 | Last updated: January 12 2009 20:33
"Copyright the Financial Times Limited 2009".
“The history of the world is but the biography of great men,” said Thomas Carlyle, the 19th century writer. The business world feels much the same way about the supreme importance of the leader. Chief executives are scrutinised endlessly, the work done by their colleagues much less so. Big mistake.
Steve Jobs is unwell. This fact has created great anxiety for Apple’s customers and shareholders. Could the company survive his departure? The question is being asked in all seriousness.
Mr Jobs attempted to calm nerves by issuing a statement ahead of last week’s Macworld conference in San Francisco, giving an explanation for his non-attendance this year. He was suffering, he explained in a brief open letter, from a hormonal imbalance that was causing him to lose weight rather dramatically. He had been successfully diagnosed and would be better soon. Unfortunately, this statement, while it may have cleared up the medical uncertainty, did nothing to puncture the cult of personality that surrounds the Apple boss. If anything, it gave it another boost.
“I’ve decided to share something very personal with the Apple community,” Mr Jobs wrote in his letter. Then came the medical bulletin. But the best was saved till the end. “I have given more than my all to Apple for the past 11 years now,” Mr Jobs said, in an unconscious reference to the Financial Times’ own “Mr 165 per cent” Martin Lukes. “I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first.”
Finally, there was a Greta Garbo-style sign-off: “So now I’ve said more than I wanted to say, and all that I am going to say, about this.” With a puff of smoke he was gone. (I’m a PC, by the way, not a Mac. Could you tell?)
I am delighted that Mr Jobs is not seriously ill and is receiving the correct treatment. It is the health of his company that concerns me more – indeed, the health of any company that hangs on the latest words, thoughts or actions of a single great man. The newspapers are full of the names of formerly great men who have now fallen to earth. Bernard Madoff was an investment hero, a one-time chairman of the Nasdaq exchange, favoured by distinguished clients such as HSBC and Banco Santander, as well as by charitable foundations supported by the newspaper proprietor Mort Zuckerman, the film-maker Steven Spielberg and the humanitarian campaigner Elie Wiesel.
B. Ramalinga Raju, founder and former chairman of Satyam Computer Services, India’s fourth-largest software company, was until last week one of the world’s most highly regarded businessmen. He won Ernst & Young’s India “entrepreneur of the year” award in 2007. He has now confessed to falsifying his company’s accounts over an extended period.
The Royal Bank of Scotland had been seen during the past few years as an all-conquering giant, and its former chief executive, Sir Fred “the shred” Goodwin, as a minor genius. Nothing criminal has gone on here, of course. But the €71bn acquisition in 2007 of ABN Amro has now been exposed as Sir Fred’s final folly.
Journalists, who have provided much of the running commentary on these and other stories, are not innocent bystanders. We have helped to build the reputations of those we now seek to destroy. But “news is people”, as the great newspaperman Sir Harold Evans has said. We are bound to describe complicated businesses through the personality of their leaders. We can overdo it a bit, though.
It should go without saying – but it doesn’t, quite – that leaders cannot do everything on their own. Leadership has to be “distributed” around the organisation, through delegation and the development of future leaders. No one should ever be truly indispensable.
Teams matter as well as brilliant individuals, as the England and Wales cricket board has just been reminded. Its superstar former captain, Kevin Pietersen, lasted only five months in the job before an unhappy dressing room forced him out last week.
Of course we need great leaders. Perhaps we are about to get one. Expectations could not be any higher for US president-elect Barack Obama, who will be sworn in to office a week from today. But it might not be a bad idea if, at the inauguration, someone were to read out these lines from Bertolt Brecht, the German poet, in which he questions how great some of the great men of history really were:
The young Alexander conquered India.
On his own?
Caesar defeated the Gauls.
Did he not even have a cook with him?
Philip of Spain wept when his Armada
Went down. Did no-one else weep?
Frederick the Great won the Seven Years’ War.
Who else won it?
On every page a victory.
Who cooked the celebratory feast?
Every ten years a great man.
Who paid for him?
So many stories.
So many questions.
----------------------------------------------------------
Our thanks to Stefan for allowing us to reproduce his note.
We thought this was very interesting, on leadership...reproducing it here with permission. (Published: January 12 2009 20:33 | Last updated: January 12 2009 20:33
"Copyright the Financial Times Limited 2009".
“The history of the world is but the biography of great men,” said Thomas Carlyle, the 19th century writer. The business world feels much the same way about the supreme importance of the leader. Chief executives are scrutinised endlessly, the work done by their colleagues much less so. Big mistake.
Steve Jobs is unwell. This fact has created great anxiety for Apple’s customers and shareholders. Could the company survive his departure? The question is being asked in all seriousness.
Mr Jobs attempted to calm nerves by issuing a statement ahead of last week’s Macworld conference in San Francisco, giving an explanation for his non-attendance this year. He was suffering, he explained in a brief open letter, from a hormonal imbalance that was causing him to lose weight rather dramatically. He had been successfully diagnosed and would be better soon. Unfortunately, this statement, while it may have cleared up the medical uncertainty, did nothing to puncture the cult of personality that surrounds the Apple boss. If anything, it gave it another boost.
“I’ve decided to share something very personal with the Apple community,” Mr Jobs wrote in his letter. Then came the medical bulletin. But the best was saved till the end. “I have given more than my all to Apple for the past 11 years now,” Mr Jobs said, in an unconscious reference to the Financial Times’ own “Mr 165 per cent” Martin Lukes. “I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first.”
Finally, there was a Greta Garbo-style sign-off: “So now I’ve said more than I wanted to say, and all that I am going to say, about this.” With a puff of smoke he was gone. (I’m a PC, by the way, not a Mac. Could you tell?)
I am delighted that Mr Jobs is not seriously ill and is receiving the correct treatment. It is the health of his company that concerns me more – indeed, the health of any company that hangs on the latest words, thoughts or actions of a single great man. The newspapers are full of the names of formerly great men who have now fallen to earth. Bernard Madoff was an investment hero, a one-time chairman of the Nasdaq exchange, favoured by distinguished clients such as HSBC and Banco Santander, as well as by charitable foundations supported by the newspaper proprietor Mort Zuckerman, the film-maker Steven Spielberg and the humanitarian campaigner Elie Wiesel.
B. Ramalinga Raju, founder and former chairman of Satyam Computer Services, India’s fourth-largest software company, was until last week one of the world’s most highly regarded businessmen. He won Ernst & Young’s India “entrepreneur of the year” award in 2007. He has now confessed to falsifying his company’s accounts over an extended period.
The Royal Bank of Scotland had been seen during the past few years as an all-conquering giant, and its former chief executive, Sir Fred “the shred” Goodwin, as a minor genius. Nothing criminal has gone on here, of course. But the €71bn acquisition in 2007 of ABN Amro has now been exposed as Sir Fred’s final folly.
Journalists, who have provided much of the running commentary on these and other stories, are not innocent bystanders. We have helped to build the reputations of those we now seek to destroy. But “news is people”, as the great newspaperman Sir Harold Evans has said. We are bound to describe complicated businesses through the personality of their leaders. We can overdo it a bit, though.
It should go without saying – but it doesn’t, quite – that leaders cannot do everything on their own. Leadership has to be “distributed” around the organisation, through delegation and the development of future leaders. No one should ever be truly indispensable.
Teams matter as well as brilliant individuals, as the England and Wales cricket board has just been reminded. Its superstar former captain, Kevin Pietersen, lasted only five months in the job before an unhappy dressing room forced him out last week.
Of course we need great leaders. Perhaps we are about to get one. Expectations could not be any higher for US president-elect Barack Obama, who will be sworn in to office a week from today. But it might not be a bad idea if, at the inauguration, someone were to read out these lines from Bertolt Brecht, the German poet, in which he questions how great some of the great men of history really were:
The young Alexander conquered India.
On his own?
Caesar defeated the Gauls.
Did he not even have a cook with him?
Philip of Spain wept when his Armada
Went down. Did no-one else weep?
Frederick the Great won the Seven Years’ War.
Who else won it?
On every page a victory.
Who cooked the celebratory feast?
Every ten years a great man.
Who paid for him?
So many stories.
So many questions.
----------------------------------------------------------
Our thanks to Stefan for allowing us to reproduce his note.
Thursday, 29 January 2009
IFB targets the young working woman
We came across this ad by IFB (appliance maker) in a magazine yesterday.
What struck us was the target. Young/ working woman. The message stands out from the clutter in the home appliances market.
Traditionally the Indian white goods market has targeted the housewife- or a woman in a "household" situation...planning for parties or worrying about her kids playing in the mud and dirtying their clothes.
The theme has been of keeping the family well fed/ or the kids clean/ or the husband promoted.
IFB targets the woman in her office. And the fact that she can fully concentrate at work knowing that the IFB appliances back home will keep her in command on the domestic front as well.
We have not seen this execution in other media. And we think it is unfortunate.
A large number of young women are entering the work force in India today. Their segmentation- targeting and positioning seems spot on.
Hopefully they will build on this and ensure the message is well communicated.
The concept stood out amidst the clutter.
Ritu and Venkat
Thursday, 22 January 2009
Some pricing notes
We visit an interesting blog called Pricing for profit. www.pricingforprofit.com
Two notes that i wanted to link here are :
1. Foru pricing strategies in a recessionary environment. Our caution to this is simply that this would apply to a wide range of products, we would not advice premium brands to follow any of these suggestions.
Rebates/ volume discounts/ free gifts etc work to increase volumes without lowering the value proposition for most mass market goods. But anything given free once sets up the expectation of future offers.
In a mass market product, the frequency of purchase and the price of the product help to mitigate these expectations. Not so for premium products.
Beware
http://www.pricingforprofit.com/blog/blog-view.php/blogid/162
2. The second note is on a bit of research that "A Beautiful Woman Can Affect Men's Pricing Decisions"
http://www.pricingforprofit.com/blog/blog-view.php/blogid/176
This has interesting applications especially for the personal loan business. But perhaps would not apply as well in markets with more easily available information.
ritu and venkat
Two notes that i wanted to link here are :
1. Foru pricing strategies in a recessionary environment. Our caution to this is simply that this would apply to a wide range of products, we would not advice premium brands to follow any of these suggestions.
Rebates/ volume discounts/ free gifts etc work to increase volumes without lowering the value proposition for most mass market goods. But anything given free once sets up the expectation of future offers.
In a mass market product, the frequency of purchase and the price of the product help to mitigate these expectations. Not so for premium products.
Beware
http://www.pricingforprofit.com/blog/blog-view.php/blogid/162
2. The second note is on a bit of research that "A Beautiful Woman Can Affect Men's Pricing Decisions"
http://www.pricingforprofit.com/blog/blog-view.php/blogid/176
This has interesting applications especially for the personal loan business. But perhaps would not apply as well in markets with more easily available information.
ritu and venkat
Sunday, 18 January 2009
when young india learns to keep its b#lls
This sentiment may have appeared before, but we felt it is worth recapturing again. While a lot of companies in India have gone into cost cutting mode, many others continue to see growth and are investing in new ventures. We hail these companies.
And ask young India to not lose self confidence. Our size matters. And our poor population needs many more products and solutions. We have our own markets to satisfy....growth is only limited by our imagination.
The stock market tanked from 20,000 levels in 2007 to 8000 in sep 2008.
In this period, India continued to have 1.2 billion people and approximately 200 million households.
India has 8 cars per thousand of population (this is closer to 400 cars per thousand in developed economie).
Penetration of color TVs at 32%. Penetration of washing machines at 8-9%.
Penetration for microwaves in the kitchen is at 1%.
With such a huge unmet demand for every imaginable product category, growth in the economy is limited only by our self confidence and imagination.
Companies like Nokia and Airtel (Bharti) have grown and will continue to grow at break neck speeds. Because they are designing value for the millions of indians who have an average per capital income of USD 1000. A phone call in India costs 3 cents.
A Nokia phone costs 35 USD.
At 25%, India's penetration of mobile telephony is far ahead of any other household equipment category.
Why dont we se more innovation in TVs/ Fridges/ Washing machines that take these products to more households? Why does not the NANO inspire us further?
Why is is that foreign investors shatter the dreams of the common man by pulling our billions of dollars overnight and crushing the stock market by half? (and hence the investments of the common man?)
Why have we not yet learnt to bring in the millions of Indians living in villages and small cities into the "investor" fold? What innovations need to happen so that even a Rs 100 investment per month (4% of per capita monthly income) can be sucked up by financial institutions?
Why must we continue to look to the west for our economy's growth?
India understand's its markets and its people best.
Why should we not think of satisfying India's needs rather than worry about how deep the American recession will be?
Should not each employee in each company in India today ask what he has done to ensure that one new household has come closer to buying his product?
Ritu and Venkat
And ask young India to not lose self confidence. Our size matters. And our poor population needs many more products and solutions. We have our own markets to satisfy....growth is only limited by our imagination.
The stock market tanked from 20,000 levels in 2007 to 8000 in sep 2008.
In this period, India continued to have 1.2 billion people and approximately 200 million households.
India has 8 cars per thousand of population (this is closer to 400 cars per thousand in developed economie).
Penetration of color TVs at 32%. Penetration of washing machines at 8-9%.
Penetration for microwaves in the kitchen is at 1%.
With such a huge unmet demand for every imaginable product category, growth in the economy is limited only by our self confidence and imagination.
Companies like Nokia and Airtel (Bharti) have grown and will continue to grow at break neck speeds. Because they are designing value for the millions of indians who have an average per capital income of USD 1000. A phone call in India costs 3 cents.
A Nokia phone costs 35 USD.
At 25%, India's penetration of mobile telephony is far ahead of any other household equipment category.
Why dont we se more innovation in TVs/ Fridges/ Washing machines that take these products to more households? Why does not the NANO inspire us further?
Why is is that foreign investors shatter the dreams of the common man by pulling our billions of dollars overnight and crushing the stock market by half? (and hence the investments of the common man?)
Why have we not yet learnt to bring in the millions of Indians living in villages and small cities into the "investor" fold? What innovations need to happen so that even a Rs 100 investment per month (4% of per capita monthly income) can be sucked up by financial institutions?
Why must we continue to look to the west for our economy's growth?
India understand's its markets and its people best.
Why should we not think of satisfying India's needs rather than worry about how deep the American recession will be?
Should not each employee in each company in India today ask what he has done to ensure that one new household has come closer to buying his product?
Ritu and Venkat
Tuesday, 13 January 2009
Your ipod, my Polaroid- Convergence and Miniaturisation
Thats the title of an article by Elsa Dorfman that i cam eacross on the Internation Herald Tribune.
Elsa laments the decline of Polaroid and its decision to no longer make instant film. She compares Polaroid in the 60s and 70s to the iPod of today.
But the most beautiful question she asks is why the legions of MBAs generated in the US could not save the instant film business.
I know little about the Polaroid to respond to her. But i would like to assure her that it will not be the last time an iconic brand gives up its traditional (original) line of business.
Nokia. They have a phone/ music player/ torchlight / radio all built into one. No one in rural India buys a torch anymore. Nor a radio player.
Apple went a step further and built style into the above mix.
The day is not far that my Apple iPhone will be the size of a wristwatch. What then will happen to Casio, Swatch or these guys in the wrist watch business?
The world will seek convenience. And it will continue to search for the one device that rules them all. Technology will make it possible to dream smaller more powerful devices. Companies that stop seing convergence and miniaturisation of their businesses will go the Polaroid way. Sony would vouch for that.
Convergence and Miniaturisation.
Ritu and Venkat
Elsa laments the decline of Polaroid and its decision to no longer make instant film. She compares Polaroid in the 60s and 70s to the iPod of today.
But the most beautiful question she asks is why the legions of MBAs generated in the US could not save the instant film business.
I know little about the Polaroid to respond to her. But i would like to assure her that it will not be the last time an iconic brand gives up its traditional (original) line of business.
Nokia. They have a phone/ music player/ torchlight / radio all built into one. No one in rural India buys a torch anymore. Nor a radio player.
Apple went a step further and built style into the above mix.
The day is not far that my Apple iPhone will be the size of a wristwatch. What then will happen to Casio, Swatch or these guys in the wrist watch business?
The world will seek convenience. And it will continue to search for the one device that rules them all. Technology will make it possible to dream smaller more powerful devices. Companies that stop seing convergence and miniaturisation of their businesses will go the Polaroid way. Sony would vouch for that.
Convergence and Miniaturisation.
Ritu and Venkat
Monday, 12 January 2009
Goldman Sachs and what i always suspected about Marketing
Marketing is dead. So dead in fact that folks are begining to confuse "communication" with marketing.
GS is looking for a marketer with “15-20 years of experience creating…multinational marketing programs” who will, in the first year on the job, “actively participate, collaborate, and shape a messaging and brand strategy reflects today’s dynamics and the firm’s leadership role in helping to define it.”
Marketing is the act of Segmenting the market/ targeting a consumer and positiong a product/ service.
It rests on Product/ Pricing/ Place (distribution) and Promotions (as necessary).
A CMO must have control over each of the above elements. Most importantly, a CMO must control product pricing. Whatever be the product/ service.
Pricing is the most definitive proof of the marketing team's success.
Take any pof the Ps away form the marketing team, and you kill it.
When a CMO role is defined as loosely as GS has done, all they are asking for is communication people. That's all right, but communication does not marketing make.
GS is looking for a marketer with “15-20 years of experience creating…multinational marketing programs” who will, in the first year on the job, “actively participate, collaborate, and shape a messaging and brand strategy reflects today’s dynamics and the firm’s leadership role in helping to define it.”
Marketing is the act of Segmenting the market/ targeting a consumer and positiong a product/ service.
It rests on Product/ Pricing/ Place (distribution) and Promotions (as necessary).
A CMO must have control over each of the above elements. Most importantly, a CMO must control product pricing. Whatever be the product/ service.
Pricing is the most definitive proof of the marketing team's success.
Take any pof the Ps away form the marketing team, and you kill it.
When a CMO role is defined as loosely as GS has done, all they are asking for is communication people. That's all right, but communication does not marketing make.
Stephen Baker's "the numerati"
Just finished reading the book..a few months behind schedule!
Its a great read. One of the few that has no inherant "functional barriers"....from IT- to Fin to Marketing...whatever your calling in life, this book makes a great read.
What is it about... the fact that powerful computers and great analytics software will allow us to understand more about ourselves, how we are evolving...and enable companies around the world to design better more useful products and services. Thats our take.
The book talks of the power of analysing data. Sure we are aware of how credit card companies use our data to predict our future purchases and send us "offers" for the same. But how about using the same data to understand our poilitical preferences and how to "influence them". How to target messages at us better...how to identify potential criminals earlier and identify the onset of debilitating disceases before traditional medical practices can spot them.
On the other hand, how much of our privacy do we lose in all this?
The author poses the question, but in all fairness refuses to go further into the debate. We believe as these technologies evolve and offer more obvious benefits, we may begin to see the benfits of giving up on some of that privacy.
The book is a great collection of case studies across fields as diverse as medicine/ employee efficiency/ medicine/ love/ work/ politics/ health care....and it is this diversity of content that makes it very fascinating.
The possibilities of using computing power with analytical models are simply limitless. No business will be isolated from this.
A point maybe a lot of us understand, but always worth repeating.
Ritu and Venkat
Thursday, 18 December 2008
Marketers identify consumer needs. Markets satisfy them.
On a recent visit to the grocer’s, we observed the following. A number of companies have branded rice, salt and wheat flour, but none of these companies sold branded sugar.
Given the concern today on healthy diets, low cholesterol and sugar diets have become much talked about. But while companies have worked to reduce the harmful effects of edible oils, not much work has been done on sugar. We are expected to take to sugar substitutes and the aim is to develop substitutes that taste as well, without the harmful effects.
(Not the same thing. Anyway, this reflection requires some more research.)
However the thought raised another question. That in the commodities business (wheat/ salt/ rice/ sugar etc), there is a trend towards “de-commoditisation”. In something as basic as these elements, companies in India are trying to find “value add” opportunities to create a differentiation. (We have not observed this in more advanced markets; and perhaps that’s why this stood out).
The role of the marketer is to define “segments” on which relevant ( to the consumer) and profitable/ sustainable differentiation can be built. Create markets.
Not all markets start as commodities, but a large number of industries based on processing naturally available raw materials start there.
Then the markets follow four stages.
Stage 1: Commodity: Sugar/ iron ore/ cooking oil/ petrol/ salt etc. These are extracted and then sold. While the market volume indeed is large, the number of consumers who would pay for a brand that adds no value to the commodity is likely to be very low. Companies should not be spending money in mass consumer communication here. The “above normal” profits would not be available.
Stage 2: Companies identify the possibility to add value on these materials to satisfy an apparent or non obvious need. For example, in India the health benefits of adding iodine to salt developed the salt market in an entirely new way.
The role of marketing media here is to connect to the end consumer to explain the benefit of the new innovation. Education is the key. Above the line drives the speed of this education.(in the consumer goods space).
A late entrant in this stage usually plays the role of “spoiler” and will drive down prices to gain market share. In essence, over time this category will step down to stage 1 commodity level.
Late entrants usually have to invest in their brand, as they category has been well established already. A good research question would be what is the maximum number of players that can profitably battle for the stage 2 market? (Our guess is that starting from the arrival of the 4th player, returns in this business start decreasing)
Hence innovating companies move to stage 3. Brands that establish themselves in stage 2, have the advantage in stage 3.
Stage 3: Segmentation, where higher order benefits are discussed. In this we look at the market for mobile phones. Where once the basic idea has been established, companies are defining phones for different users (business/ consumer), different geographies etc. again to create markets.
Media and the marketing message are continuing to educate consumers, however they are equally concerned about reaching specific segments. Market research becomes critical so as to identify large segments of consumers. Again, wider media options would be ideal here, optimized to the size of each segment being targeted.
For the early innovators, high brand salience requires less communication on the brand level but more on demonstrating the relevance of the new segment.
For late comers, that have not played in stage 2, developing the brand is critical in stage 3. At the same time they must also do one of the two:
1. Define a new sub-segment, build its relevance and hence the brands salience to the consumer.
2. Or demonstrate objective performance superiority in a new sub-segment.
Hence marketing investments have to be on two fronts.
Nokia would be an example of a brand that defined a category (stage 2) and then has continued to differentiate it in stage 3.
Another example, a brand like Tata salt that has established itself in the “iodized salt” category should have found it easier to then define “vitamin enriched salt” for the next stage. (It has not done so).
Stage 4: Super niche categories evolve with inherent high entry barriers as well as high profits. Technology and consumer expectations are very high. Here, we enter super-niches. Mass market communication tools are sub-optimal as the size (volume) of the segment decreases.
New entrants in the market must understand where their offerings would fall in the stage-wise evolution of markets. Without this understanding defining of the marketing mix is risky and inefficient.
Ritu and Venkat.
Thursday, 4 December 2008
Losing control at the car mechanic’s!
Companies that want to gain market leadership understand when consumers want to be in control of their purchase decision process and facilitate this.
We write this as a reaction to two recent purchases. Car tires and a car battery. For the first time in 10 years, we had to do this. It was not pretty; the average car workshop in India is very very ugly. It was not easy; we have little interest in cars, and so know very little about the products we were going to purchase.
It was a very suspicious process; the folks selling to us seemed to know no better than us.
We parted with a lot of money that we cannot justify beyond assuming that the seller knew better.
And in return, along with some tires, we were left with a question. Why do we know so little about this product? And why do we allow a complete stranger to decide how I will spend $250 ?
We thought of our purchase process for various products. Toothpaste, computers, apartment, car, tires….and concluded that our involvement in purchase decisions depended on :
1. inherent interest in a category,
2. the hardship from a bad purchase and
3. The cost of the purchase.
When we bought stationary or light bulbs, we simply accept the dealer’s recommendation. (As long as he offered the low energy technology on the bulbs). This is interesting, bulb makers make us aware that new energy efficient technologies are now replacing traditional bulbs. Did you know that energy efficient tires exist as well?
Why is it that the bulb maker does not leave this to the dealer to explain to me ,but the tire maker does?
Some purchases such as toothpaste/ shampoos/ light bulbs happen very frequently. A consumer shops for these types of products almost every month. (Unless he is a bulk buyer). Consequently, we are open to information about these products.
An advertisement is likely to influence choice (and be remembered) at least till the next purchase which may be a few months away.
For a car tire or battery, however, the purchase cycle if often in years. 3- 4 years sometimes. An advertisement may not necessarily stay with the consumer till his next purchase.
On the other hand, since the need for new tires is not usually evident in advance, the mind is not usually receptive to any information. And it is only when we are engaged that we seek information.
A number of purchases are made on the basis of “habit”. Here the familiarity with a product category has been built up over time. A toothpaste is bought once a month. Only a very critical piece of research or a very poor product experience can change this habit. Having used both Pepsodent and Colgate, we personally choose Colgate because of its smoother mouth feel. What marketing message talks of this?
(We buy toothpaste for its medical value no doubt, and advertisements continue to emphasise this. But having realized that this benefit is now assured in every tube, we have moved onto other differentiators. A toothpaste manufacturer however is limited by the fact that he must continue to emphasise this medical benefit, less his competitor gets perceived as being better on this parameter.)
Being exposed to Colgate and Pepsodent advertisements on dental hygiene reassures me that my choice is OK.
With a light-bulb, which is less difficult to differentiate, we are more open to a dealer’s recommendation. As long as the “industry standard” technology is being respected. We don’t need to be in control. Again the key parameters:
1. inherent interest in a category,
2. the hardship from a bad purchase and
3. The cost of the purchase.
When the value of good increases, the risk from a bad purchase magnify. Then we ourselves seek for information.
Take clothes. We have some brands in mind as we begin the shopping process and then select based on prices/ designs / sizes. Seldom do we respond to the dealer’s recommendation.
At the same time, with little product differentiation, most companies work on the “qualitative” elements of the brand. The cost of a bad purchase is high and obvious very quickly.
A consumer is evaluating for himself, which category of products he wants information on. And then his level of “education” depends on the interest in the category and the information available.
However, successful companies have helped consumers re-prioritise. Think Intel.
If the information in the “public” domain is limited, the consumer depends on the dealer. When this product is a high value purchase (monetary or emotional), frustration is likely, since the consumer perceives a loss of control on the decision.
Usually, consumers do not invest time in learning about product categories which are cheap (per unit), last only a short duration (and any error can be corrected very quickly at low cost) and do not have a very damaging effect. (Our observation is that women take more time to choose between skin creams than between toothpastes).
So why dont we think about our tires and car batteries?
And hence we are perturbed, and surprised by how little control consumers have on their purchases of tires/ car batteries. There is not much “authoritative” information on these products. The need for them arises at very short notice, so a consumer that has not already made up his mind, often finds himself with not time to do so at the dealer point.
Then, the dealer becomes the decision maker.
Obviously, incentivising dealers to push their brands was cheaper and easier to control as compared to a direct engagement with consumers. More so that in a product seen as a highly technical, the role of the dealer was perceived to be the one of “experienced educator”.
But a dealer incentivised to maximize his gain, may not necessarily give the consumer the best possible advice. Not being in control in this purchase decision, does not amuse us. It’s a lot of money to give away on the advice of strangers. And clearly, in the tire business, we don’t (as consumers) perceive any clear market leader in India.
As in the pharmaceutical industry, it is necessary that companies invest in educating the consumer. If the computer industry has taught me to identify differences in hardware, why cannot the tire industry. It will be expensive, and the industry is not known to be a big cash generator, but then this is a Catch 22 situation. Consumers will pay premiums when they understand the benefits. Only through creating “demand” for their brands will true market leaders emerge. Those that will gain above normal margins. Otherwise this industry will be held captive by intermediaries (dealers) whose interest is not in product innovation and category advancement.
There is no justification any more for why companies will not spend money educating their consumers, if they expect these consumers to remain loyal and discerning. There is no short cut to this. No amount of dealer incentives or original equipment (OEM) recommendations will justify the loss of control that consumers face in these product categories.
Companies that want to gain market leadership, understand when consumers want to be in control and facilitate this.
We write this as a reaction to two recent purchases. Car tires and a car battery. For the first time in 10 years, we had to do this. It was not pretty; the average car workshop in India is very very ugly. It was not easy; we have little interest in cars, and so know very little about the products we were going to purchase.
It was a very suspicious process; the folks selling to us seemed to know no better than us.
We parted with a lot of money that we cannot justify beyond assuming that the seller knew better.
And in return, along with some tires, we were left with a question. Why do we know so little about this product? And why do we allow a complete stranger to decide how I will spend $250 ?
We thought of our purchase process for various products. Toothpaste, computers, apartment, car, tires….and concluded that our involvement in purchase decisions depended on :
1. inherent interest in a category,
2. the hardship from a bad purchase and
3. The cost of the purchase.
When we bought stationary or light bulbs, we simply accept the dealer’s recommendation. (As long as he offered the low energy technology on the bulbs). This is interesting, bulb makers make us aware that new energy efficient technologies are now replacing traditional bulbs. Did you know that energy efficient tires exist as well?
Why is it that the bulb maker does not leave this to the dealer to explain to me ,but the tire maker does?
Some purchases such as toothpaste/ shampoos/ light bulbs happen very frequently. A consumer shops for these types of products almost every month. (Unless he is a bulk buyer). Consequently, we are open to information about these products.
An advertisement is likely to influence choice (and be remembered) at least till the next purchase which may be a few months away.
For a car tire or battery, however, the purchase cycle if often in years. 3- 4 years sometimes. An advertisement may not necessarily stay with the consumer till his next purchase.
On the other hand, since the need for new tires is not usually evident in advance, the mind is not usually receptive to any information. And it is only when we are engaged that we seek information.
A number of purchases are made on the basis of “habit”. Here the familiarity with a product category has been built up over time. A toothpaste is bought once a month. Only a very critical piece of research or a very poor product experience can change this habit. Having used both Pepsodent and Colgate, we personally choose Colgate because of its smoother mouth feel. What marketing message talks of this?
(We buy toothpaste for its medical value no doubt, and advertisements continue to emphasise this. But having realized that this benefit is now assured in every tube, we have moved onto other differentiators. A toothpaste manufacturer however is limited by the fact that he must continue to emphasise this medical benefit, less his competitor gets perceived as being better on this parameter.)
Being exposed to Colgate and Pepsodent advertisements on dental hygiene reassures me that my choice is OK.
With a light-bulb, which is less difficult to differentiate, we are more open to a dealer’s recommendation. As long as the “industry standard” technology is being respected. We don’t need to be in control. Again the key parameters:
1. inherent interest in a category,
2. the hardship from a bad purchase and
3. The cost of the purchase.
When the value of good increases, the risk from a bad purchase magnify. Then we ourselves seek for information.
Take clothes. We have some brands in mind as we begin the shopping process and then select based on prices/ designs / sizes. Seldom do we respond to the dealer’s recommendation.
At the same time, with little product differentiation, most companies work on the “qualitative” elements of the brand. The cost of a bad purchase is high and obvious very quickly.
A consumer is evaluating for himself, which category of products he wants information on. And then his level of “education” depends on the interest in the category and the information available.
However, successful companies have helped consumers re-prioritise. Think Intel.
If the information in the “public” domain is limited, the consumer depends on the dealer. When this product is a high value purchase (monetary or emotional), frustration is likely, since the consumer perceives a loss of control on the decision.
Usually, consumers do not invest time in learning about product categories which are cheap (per unit), last only a short duration (and any error can be corrected very quickly at low cost) and do not have a very damaging effect. (Our observation is that women take more time to choose between skin creams than between toothpastes).
So why dont we think about our tires and car batteries?
And hence we are perturbed, and surprised by how little control consumers have on their purchases of tires/ car batteries. There is not much “authoritative” information on these products. The need for them arises at very short notice, so a consumer that has not already made up his mind, often finds himself with not time to do so at the dealer point.
Then, the dealer becomes the decision maker.
Obviously, incentivising dealers to push their brands was cheaper and easier to control as compared to a direct engagement with consumers. More so that in a product seen as a highly technical, the role of the dealer was perceived to be the one of “experienced educator”.
But a dealer incentivised to maximize his gain, may not necessarily give the consumer the best possible advice. Not being in control in this purchase decision, does not amuse us. It’s a lot of money to give away on the advice of strangers. And clearly, in the tire business, we don’t (as consumers) perceive any clear market leader in India.
As in the pharmaceutical industry, it is necessary that companies invest in educating the consumer. If the computer industry has taught me to identify differences in hardware, why cannot the tire industry. It will be expensive, and the industry is not known to be a big cash generator, but then this is a Catch 22 situation. Consumers will pay premiums when they understand the benefits. Only through creating “demand” for their brands will true market leaders emerge. Those that will gain above normal margins. Otherwise this industry will be held captive by intermediaries (dealers) whose interest is not in product innovation and category advancement.
There is no justification any more for why companies will not spend money educating their consumers, if they expect these consumers to remain loyal and discerning. There is no short cut to this. No amount of dealer incentives or original equipment (OEM) recommendations will justify the loss of control that consumers face in these product categories.
Companies that want to gain market leadership, understand when consumers want to be in control and facilitate this.
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