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Friday, September 21, 2012

Electronics Value Chain Management - EVCM !








Global Value Chain in Electronics Industry!

Recently I came across the concepts of “Global Value Chain”, “Electronic Value Chain Management (E.V.C.M.)” & “Value Chain Modularity”. Till now I have had heard about simple good old Michael Porter’s Value Chain. What could this word “Modularity” possibly mean? Started surfing in net for some material which would be little easier for me to understand. I wonder, where would I possibly have gone if there was no “Google”! Ran though some really interesting articles. Whatever I understood I am sharing with you & will try to make it as simple as possible.
 
Electronic Hardware Industry is one of the most crucial goods producing sector, generating greater revenue than any other industry and gives employment opportunity to a huge base of skilled human resources. The electronics manufacturing industry enhances the output productivity of other industries as well, adding value to the other industry value chain. As a result it is entitled as the “Propulsive Sector”. Thousands of odd companies from different countries contribute to the industry on day to day basis. Even a single product can contain work carried out by ten different firms in multiple countries.
 
There are mainly 3 major players in the industry – the Lead Companies (Contract givers), the Contract Manufacturers, and the Platform Providers (the Software Firms). They all the interdependent for their sheer existence and growth. There are many hitches and death traps for the Electronics firms to overcome. The developed countries get better facilities, whereas the developing countries struggle harder to sustain in this highly competitive market scenario. 
 
In the developing countries the electronics firms uses 4 strategies to overcome these limitations.
(1) global expansion though acquisition of declining brands (emerging multinationals);
(2) separation of branded product divisions from contract manufacturing (original design manufacturing (ODM) spinoffs);
(3) successful mixing of contract manufacturing and branded products (platform brands) for contractors with customers not in the electronic hardware business; and
(4) the founding of factory-less product firms that rely on global value chains for a range of inputs, including production (emerging factory-less start-ups).
 
Strategic Action Plan could be, Attract FDI from component manufacturers, Form joint ventures with component manufacturers, Manufacture under license, Move away from contract manufacturing to ODM and OBM, Establish Design Services, Establish Support Industries, Establish a Branding Strategy (Via subsidiaries, Via links with buyers).
 
For further studies please refer the below mentioned .pdf materials. These are very enriching and indepth informative research papers.
 
http://www.unescap.org/tid/projects/sasme_s4b.pdf http://unstats.un.org/unsd/trade/s_geneva2011/refdocs/RDs/GVC%20in%20Electronics%20Industry%20%28Sturgeon%20-%20Sep%202010%29.pdf
http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-5417
http://spectrum.ieee.org/webinar/1705632

Thursday, September 20, 2012

Present & Future of Electronics Industry in India!

It all started sometime around 1965 in India. India's giant leap towards the Electronics Industry. It was an era of Radios, Black & White TV, Calculators and other Audio Products. Then came the era of Color Television. It was the year 1982 when Indian Government took initiative to import more number of Color TV sets to make it possible for the Indian citizens to enjoy the direct broadcast of Asian Games happening in New Delhi. Then slowly but gradually came Telephone and Computers.

In the last decade the electronics industry has seen a rapid and healthy growth. With a steady increase in demand the Industry Gurus are predicting a lucrative market of US$ 400 billion (INR 21,66,000 Crores) by 2020. And the most booming sector among electronic industry would be the Consumer Electronic Goods segment. Indian electronic industry has showed us an excellent growth from INR 54 billion (2007-2008) to INR 79.48 billion (2011-2012). Indian electronic industry mainly manufacture and exports components for foreign companies. The total demand of global electronics hardware production is US$ 1.7 trillion (INR 92,05,500 Crores) and Indian electronic industry caters to only 1.3% of this huge global demand. Indian Consumer Electronics and Durable industry is now worth INR 340 billion and caters to the global demand exporting components for Display Technologies, Entertainment Electronics, Optical Storage Device, Passive Components, Electro-mechanical components, Telecom Equipments, Transmission & Signalling Equipments, Semiconductor Designing and Electronic Manufacturing Services.

With such an present scenario, India acting as a thriving market for mobile phones. Every month about 2 million Indians start using mobile phones. Telecom industry alone is penetrating the total Indian electronics industry at a brisk rate of 10%. Other than Telecom, Auto Electronics, Consumer Electronics, Industrial Electronics and Medical Electronics sectors are also showing high and steady growth. The industry analysts are now predicting a market of more than US$ 150 million for Indian electronics industry.

The present Indian electronics industry market and the growth is alluring the global players. Companies like Solectron, Flextronics, Jabil, Nokia, Elcoteq have come forward to invest in Indian market. Even Korean Electronics Giants like LG & Samsung have committed to establish manufacturing facilities in Indian territory. Total 50 Electronics Manufacturing Services & Original Design Manufacturers providers are operating in India, both global player like Solectron, Flextronics as well as Indian players like Deltron, TVS Electronics, Sahasra etc.

One most crucial and significant reason for the internationally acclaimed player to get interested to start manufacturing plants in India is "HUMAN RESOURCE". India is saturated with highly educated and unemployed human resources. Both skilled and unskilled employees are waiting to get an opportunity to grab on. Labor cost for manufacturing electronics goods and services in India is about 30-40% cheaper than the same in US or Western Europe.

So one conclusion I can draw without much hesitation is that, the day is not so far, when Indian Electronics Industry will be poised in the pinnacle of the global scenario and India will be the Epicenter of the global electronics industry.


Webliography:
http://www.assocham.org/prels/shownews-archive.php?id=3458
http://www.cci.in/pdf/surveys_reports/electronics-industry.pdf
http://www.ventureoutsource.com/contract-manufacturing/top-10-ems-odm-reviews-and-ratings/

Philips Electronics India Limited - Potential Solutions!

As a student of Brand Management, Strategic Marketing and Global Brand Strategy, I would suggest the Management of Philips to first go for an qualitative interview (better to have Focus Group interview) with their loyal set of Indian customers, if any. Through this they must try to find out the top 4-5 values which drives those loyal customers to buy Philips products. What they feel, perceive and if there is any sense of Pride for having a Philips product in their daily routine etc. Even what they would love to have from Philips and how/where they want to see Philips in the future etc as well. This will give them the idea about the theme or concept they need to push and emphasize upon more and more via all their Integrated Marketing Communication.

Secondly they need to prudently divide the Indian Consumer Electronics Market into precisely distinguished segments. considering each of Demographic, Economic, Technological and Social parameters and their effects on the customer's buying behavior. After that they will have to prudently realign their product range and brands with those segments. It will give them clearer picture and better idea about the theme they should go for each product range and will be able to hit the precise target segment of customers. A particular segment or class of customers like to a particular type and level of ads for almost every product available on planet earth. Different segment of customers understands and attuned to a particular type of communication. It is the work of the marketing and branding manager to hone that very language (using IMC) to communicate with the target customers. Phillips as a global brand have to know what communication language or tone their customer wants to hear and start speaking in that manner.

Why Philips has gone for one single advertisement for all product line and for every segment of Indian Market is a matter which I fail to understand. When I see Sony ads, I see different ads for different segments or class of brand. People who have the money and capability to buy a prestige and class brand will never be convinced and awed with the same type of ad which captures the middle class or lower strata of customers. Even the ads should be shrewdly differentiated for Urban buyers and Rural buyers. And not all Indians are Tech Savvy and Research Scholars to understand the depth and awe of the innovation Philips using in its product. It is either the glamor quotient or the bare functionality that matters the most. Philips with its consumer durable electronic goods cannot expect that kind of super tech savvy costumers altogether which Apple Inc. might be enjoying.

So simply dangling the carrot of Innovation in front of vast customer base of Indian market is not going to do any good, until you know what your customer really wants to eat!

Philips Electronics India Limited - Actual Problems!

As they write in their Strategic Focus agenda, as quoted from

http://www.sec.gov/Archives/edgar/data/313216/000095012310015062/u08188exv15wxby.htm

"Meeting people’s needs with “sense and simplicity”
 
People’s needs form the starting point for everything we do. By tracking trends in society and obtaining fundamental insights into the issues people face in their daily lives, we are able to identify opportunities for innovative solutions that meet their needs and aspirations.

Our “sense and simplicity” brand promise expresses a commitment to put people at the center of our thinking, to eliminate unnecessary complexity and to deliver the meaningful benefits of technology. Our adoption of Net Promoter Score (NPS), which measures people’s willingness to recommend a company/product to a friend or colleague, shows how we are doing in this respect.
"

They are not doing it on a localized basis. When a brand goes global, they target more and more local markets. Their main intention remains, to reach out to more diverse customers with different cultural and social buying behaviors. To do that they need to customize their brand according to the local requirements/demand. As the marketing Gurus say "Think Globally, Act Locally" - the mighty Glocal concept!

Which seems the Philips management is not very keen to work on for their brands marketed in India. What kind of add on values they have to provide to cater the Indian customers or what sort of advertisements they should come up with to attract new customers and to retain the brand image in the existing customer's mind, are some of the very crucial points which they seem to be not so inclined to.

Though they have mentioned in their official website that -

"Philips Electronics India Limited,... is the leading Health and Well-being company. Today, Philips is a simpler and more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing people’s Health and well-being needs and aspirations as its overarching theme."

"As one of the nation's most well-known and well-loved brands, Philips is a part of practically every Indian's life... Philips products find use in virtually every aspect of an individual’s daily life 24X7 - at home, at work, on the move and at rest. Philips stands as a source of easy to use, trendy and innovative internationally acclaimed products with superior design and technology that enhance the quality of consumers' professional and personal lives."

Philips is present in India for over 75 years. They have more than 4,500 employees pan India.  They have an excellent distribution and post-sales service network spread all over India. But yet they are failed to hold their place in the customers Awareness Set and Consideration Set.

When we go to buy any flat screen/ LCD/ LED TV in any shop, in most cases we don't even keep Philips as our consideration set. We all watch the Philips TV Ads, but none of us get really impressed by the word innovation in their ads. For us the words innovation and TV gives away brands like Sony, Samsung, LG, Panasonic, etc.

For me, it seems that the Philips management is not being able to convey the message (be it innovation or any other value proposition) to the end customers in a convincing, persuasive manner to get hold of a place in the customer's decision set.

For further reading -
http://www.dnaindia.com/money/interview_philips-will-invest-strongly-in-r-and-d-marketing-in-india_1282533
http://www.dnaindia.com/money/interview_philips-will-invest-strongly-in-r-and-d-marketing-in-india_1282533

Philips Electronics India Limited - Current Scenario!


Most of us know about the brand Philips Electronics India Limited. Some of us know bit more about their present business and marketing scenario and the issues they are facing. Here I will be sharing my take on the issues with their marketing and branding strategies in India and the potential solutions.

Let me first give you a little statistics about the global market situation of Royal Philips Electronics and it's close competitors. This is the list of top 12 Electronics and Electronic Equipment companies in the world by their revenue [as per Yr2007 data]

Siemens ($106bn)
Samsung Electronics ($106bn)
Hitachi ($98bn)
LG Electronics ($82bn)
Panasonic ($79bn)
Sony Corporation ($78bn)
Toshiba ($67bn)
Hon Hai Precision ($52bn)
Tyco International ($38bn)
Philips ($37bn)
Mitsubishi Electric ($35bn)
Sharp Corporation ($30bn)

Here we can clearly see that Philips is in the 10th stand and just above Mitsubishi Electric. In fact almost standing neck to neck.

Below is the changed scenario in the Yr 2011. See the difference -

Samsung is reigning the industry sitting at the top with a revenue of US$ 133,780.
then at 5th position Hitachi with US$ 112,400
followed by Panasonic with US$ 104,880
Siemens US$ 96,590
Sony US$ 86,640
Toshiba US$ 76,667
LG Electronics US$ 48,230
Mitsubishi US$ 44,800
Sharp Corporation US$ 33,639
and Philips is settled with a revenue of US$ 33,390

As it is pretty evident from the above statistics that Philips is loosing its fight with other electronic industry giants. The Indian scenario is much more worse. The brand Philips in India try to position themselves as a prominent leader in consumer electronics goods segment. In their own words, "Today, Philips is a simpler and more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing people’s Health and well-being needs and aspirations as its overarching theme."

But is that the real scenario? Let us see what are the products they have in their portfolio to offer. Television, Home Theatre, Audio, Portable Multimedia, Headphone, Professional Displays, Personal Care and Grooming equipments, Kitchen Equipments (mixer, grinder, juice maker, rice cooker, etc), Lights, Notebooks, Mobile phones etc.

For further readings -
http://www.moneycontrol.com/news/business/philips-india-forays-into-water-purifier-business_279221.html
 http://www.sec.gov/Archives/edgar/data/313216/000095012310015062/u08188exv15wxby.htm

Thousand Sales Promotions < One Interesting Advertisement

In today's world it is really rare to find a brand which has no competitor and are the lone ruler of that market. Globalization and Consumerism has made it more competitive. 

Any brand to succeed in this highly competitive market need to have a significantly high band awareness and equally higher brand relevance. Sales Promotions and Offers and other tactics will help the brand to boost up its sales for a certain period of time. But definitely they cannot go on spending money & other resources on throwing freebies to the customers. Especially if we analyze those customers buying behavior, we can see that, out of 10 customers around 4 customers might be the loyal customer of that brand. Rest of them might have bought that brand just for the freebie or the other push offers or discounts. For them this brand has less brand value, it is rather a product or a me too brand - which is nothing but just another option. Once the company closes the freebies or the offers, 3 out of that 6 customers might switch to some other brand who is offering something else free.

So we as a brand manager need to work on the brand awareness and the customer delight. I personally would rather concentrate on the consumers or the end users delight. Because not always the customers are the end users. If the users are happy with our product then they will compel the customers to pay and buy the brand. In kids products, kids and moms will be the hit audience. For home usage products the mother or the wife are the ultimate decision makers. The pestering power of these end users is the main driver for the customer behaviors.

In this globalized market of Gen Y customers we have no other strong ammunition except "Interesting and Engaging Advertisement". One single mind and attention capturing ad could be more effective and efficient than a thousand promotional tactics. If the awareness is higher then it will be much more easier for the marketing team to compliment the effort with some level of promotion approaches. One Visual image could say a thousand words. Sometime it says beyond the obvious.

An excellent example of such ad could be the below attached one:


DDB New York Wins Big for New York Lottery at 2012 World Lottery Summit

Wednesday, September 19, 2012

Social Media & Organizational Change Management!

Organizational Change Management is a pretty big model to discuss. It is a continuous process and could be in any of these diversified arenas – Organizational Mission, Strategic, Operational, Technological, Human Resource etc. Every organization undergoes certain degree of changes. But to make these changes smooth and positively accepted, it needs to first analyze and systematically diagnose the present scenario and requirements of the organization. Once properly analyzed it goes for an SWOT analysis of the planned changes and whether as an organization it is capable to incur those changes. The blue print for objective, content and process is very crucial.

Every organization communicates the objective and the plan/ process and the envisaged benefits to the change audiences. Unless until the audiences are fully convinced about the need for the change and considers the process as the best possible one, they will never be fully cooperative towards the management. Since the Gen Y employees are much more tech and net savvy, they tend to spend a huge share of time in socializing in different social media. So it is much more recommended to communicate to the changes audiences via different social media, be it the internal communication platform or any external platform. It will let the employees to share their thoughts and ideas openly amongst themselves. It is a proven fact that, a person is much easily convinced by a peer rating or peer recommendation/reference. It is an application of the Shepard Theory. One person in the department or organization can lead to a majority acceptance or majority rejection of the change. It all depends on how good the acceptance level is for that particular person in that in-circle group.

Chatting option and blogs and micro websites built specifically for the change management procedure could be pretty interesting tool to make the process of change management far more effective and efficient. And my personal suggestion is that the in group or the core team appointed for the change management, should put a more reliable, trusted and authoritative person as the point of contact and the source of information. It will ensure the better acceptance of the news and much more willingness to understand the cause and effect of the change. The master stroke for the organization would be to involve the audience of the change into the process. Let them come out with a smarter and more innovative and wholesome better way to cope up with the inevitable requirement of change.

If they themselves brainstorm and come up with a solution that will get much better and healthier reception.

I would suggest a few interesting reads viz.

http://www.torbenrick.eu/blog/change-management/10-ways-social-media-can-support-change-management/
http://www.torbenrick.eu/blog/change-management/top-20-change-management-mistakes-to-avoid/
http://www.torbenrick.eu/blog/change-management/12-reasons-why-people-resist-change/

Future Leaders - Captain of the Biz World's Noah's Ark!



The other day I was reading an article on most important Leadership Traits and got stuck with this excellent words by Jack Welch, former chairman and CEO of General Electric Co., "Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion."

The trend of the forthcoming business world shows an impressive impending requirement of Strong Leaders with deeply rooted value system and precise clarity of knowledge and proven skill set and expertise. With the ever increasing number of Business Schools in India and all over the world, the human resource market has almost become like a fish market. Every B Schools are trying to sell their MBAs and make money out of it. All these students are a product or better to say a blend of Product and Service. They are the product of the B Schools and they are expected to provide a certain level of service to the company which recruits them. But are they all really ready to board the ever dynamic biz ship? Are they ready to lead the others or they are just stagnant followers?

A Leader is fundamentally supposed to inspire and motivate others, be it someone in her own team or someone outside her team, to visualise the same vision and goal aspect of the team or the organization as a whole and to give their best to achieve the same. A Leader could be found or nurtured to sprout out the necessary qualities. But the deep sense of sincerity is a must for the candidate to have, to realize her responsibilities and how is she expected to behave towards her team members/ followers.

There are some points and parameters which we need to consider coming to a decision viz. Competency, Dedication, Magnanimity, Humility, Openness, Creativity, Fairness and Assertiveness. Even a ‘Good Sense of Humour’ is as important as the other aspects. Other than that a never back down attitude is very much required. We look upon those leaders who has an exemplary intrinsic character and who inspires or ignites the same kind of zeal in us when we interact with her.

A leader is expected to have the Go getter and “Nothing is Impossible” attitude. Most of all a leader is supposed to inspire, and seed in the confidence and ambition aspect in her team members. A true leader does not only set an example in front of her team members, she does the same for those who are even outside her organization or professional circle. She needs to be a wholesome package of Skill and Value.

Communication skill and interpersonal skill is the human resource handling aspect of a leader. She is supposed to share the vision or the organization and mission of the team and inspire the whole team to pulsate at the same frequency level - be it ideas, or energy or approach! This comes only when she has complete knowledge about each and every member of her team. She must know every member both at a personal level and obviously at a professional level. She has to have complete confidence and certain level of trust about their skill and capabilities. Continuous knowledge flow and idea sharing is the only way for an excellent leader to build her team a very competent and performing one.

Last but not the least, a leader is the one who is emotionally stable and balanced as a person. It many happen sometime when the leader herself does not know the way out of some crucial issue. And she might be desperately trying to find a proper and effective solution to the same. As a leader she really cannot open up to her team members that she herself is at loss. Because no body wants a leader lost in deep soup. So she has to keep the confident facade on all the time and have to maintain her calm even when her team mates are in fact doubting her ways.

The websites I was mentioning are

http://www.comparebusinessproducts.com/briefs/top-10-leadership-qualities
http://www.entrepreneur.com/article/204248
http://www.nsba.org/sbot/toolkit/LeadQual.html
http://www.groco.com/readingroom/bus_goodleader.aspx

Sunday, September 16, 2012

Place Branding - the Idea !

The concept of branding of a place just like a product has created quite a debate. Marketing stalwarts like Philip Kotler, Professor David Gertner & Wally Olins are clearly against the idea of branding a place alike a product. For them it is almost absurd.

“the idea of a nation as a brand – as Kellogg’s Corn Flakes is a brand – is a very big mistake,”

Magne Supphellen, professor at Norwegian School of Economics and Business Administration in Bergen, says that, “In principle, [product] and place branding is the same. It's all about identifying, developing and communicating the parts of the identity that are favorable to some specified target groups.…” But brand building activities for places are far more complex than for products. “It is far more difficult to obtain a fully integrated communication mix in place branding,”


Though these questions are valid and we aim to find a reasonable logical answer to this debate later in some other post, I will be mainly dishing out my personal idea about something very much related to this concept.

The Idea is - coming up with organizing a public or user driven portal working as a "Content Supplier" to the place branding agencies and different government authorities.

A user driven portal like Wikipedia, where the membership is free. The portal is connected with Picasa or Flickr. Now as and when any of the members visit any new place or country, he/she tend to click many pictures of the place. Even people tend to capture the beauty or essence of their native place as well. after clicking so many pictures, some of them must be of excellent quality.

If they do not have any issue to share those pics with the portal via Picasa or Flickr, then there will a considerable amount of pictures and videos accumulated over time. After every six month the members will arrange for a peer rated online voting process. Like the way it is done in Kodak or Canon Online photo competition. Where the best pictures of a particular place or country will be selected by the members themselves.

Now those best pictures and videos will be compiled and proposed to that particular places government authority or any branding agency. If they buy the offer then a part of the profit margin will be shared among the members of the online portal and the rest will be used to take care of the online marketing or advertisements of the portal (website) in Google etc.

Since there is no expense for the pictures to get, because normal people are clicking those pictures for their personal purpose, while traveling. Now they are putting up those pictures online like the way they put up in FB or Twitter or Orkut. So the input cost is almost nil. As a result there will be full profit out of the deal.

Again, since the pictures are being clicked by normal people, so the charges will be very less and the quality and authenticity of the pictures or content will be very real and effective. No artificial posed models in front of The Alps, or so.

This is the idea. Now I want you to think, critique and share your takes on this. Let us share our own ideas on this. Waiting to hear your voice friends!

Place Branding - The Prologue!

I always nurtured this big dream of becoming a globetrotter. I wanted to travel to all those small lesser known cities and places which definitely does not acquire the top of the travel destination list of normal tourists. I have had this plan to make small documentaries on those places and come up with an exhibition. I am pretty sure that whoever has gone through my other blog "Globetrotter - Journey of a Lone Traveler" already knows this.

The other day, while coming back from college i was day dreaming about all these sweet but expensive hobby. And bam, it hit my head instantly! I can use those documentaries to earn money to cover up my next tour expenses. If I can offer to sell the documentary to that particular country or place's authorities and they really like it, then it could be both way a win win condition. For the authorities it would be an authentic and realistic document to showcase their country and for me I will get my airfare or other travel expenses covered up. The documentaries will showcase the particular countries real assets and beauties beholden from a genuine travelers eyes. The photos or the subjects or the people in the pictures will not be artificial and posed. They will be as real as myself!

So, now content with the new idea I waited till I reached home. Then a unwelcome thought swept my mind - what if someone has already got this excellent idea before me and already have started working on it! Naive gullible me!

I did not dwell on that unpleasant thought for long and typed "Country Branding" in the Google. And my worst thought came true, when the Google Search Engine produced hundreds of pages in front of me.

With all dread in my mind I saw there are thousands of links and web contents on the same topic. At the top of the list is a page in Wikipedia called Place Branding! Pensively I opened the link and check on the data and information provided there. The more I read the more intrigued I became. Whoa! It is really a whole lot of research gone into this concept and so many people has done so many in depth work in this. It took the whole evening and the day next to roughly go through the first few links and webpages on that.

Piqued by the interesting topic I made a small informative presentation on Place Branding and presented to my classmates. Some of them really liked and I was able to make a few of them more inquisitive about the concept. That's indeed a big gain, for all those hours of info gathering. I was happy.

And then one day suddenly this completely different idea clicked in my mind. In my next post I will be sharing my idea with you.

Thursday, September 13, 2012

Few More Interesting Quotes!

"If design isn’t profitable, then it’s art" – Henrik Fiskar
"The best way to predict the future is to invent it." – Alan Kay
"If you're not trying to do something better, then you're not focused on the customer and you'll miss the possibility of making your business great. " – Jonathan Ive, Senior Vice President of Industrial Design, Apple Inc.
"It's not what you do once in a while; it's what you do day in and day out that makes the difference."
– Jenny Craig
"Price is what you pay. Value is what you get." – Warren Buffett
"Don't listen to you customers. They don't know what they want anyway." – Larry Webber
"Unless you can begin with an interesting problem, it is unlikely you will end up with an interesting solution." – Bob Gill
"Change will lead to insight far more often than insight will lead to change." – Milton Erickson,
Psychotherapist
"Design is about problem solving, not about personal preference or unsupported opinion." – Bob Baxley
"Quality in a service or product is not what you put into it. It is what the client or customer gets out of it." – Thomas J. Watson Jr.
"You need the simplest version of the idea in order for it to grow naturally in the subject's mind." – Inception, Movie
"A Brand is not a product or a promise or a feeling. It's the sum of all the experiences you have with a company." – Amir Kassaei
"It is easy to be accurate if you have the freedom to be complicated, and it is very easy to be simple if you have the freedom to shade the truth. What's hard is to be simple and very accurate, and that takes work to figure out what are the simple truths that are going to sustain your case." – David Boies
"Disagreements often occur simply because the words we use don't mean the same things. Check the vocabulary before deciding." – Liz Strauss
"Those who don't set goals in life end up being controlled by those who do." – Paul Sloane
"Everyone has a plan 'till they get punched in the mouth." – Mike Tyson
"When walt disney announced TV show to promote his movies, other studios were angry. They saw TV as competition." – Don Florence
"Focus groups are a waste of time, filled with people telling you what you want to hear so they can go home." – Sergio Zyman (former) CMO Coca Cola
"If you really want to do something, you'll find a way. If you don't, you'll find an excuse." – Jim Rohn
"Be yourself. Everyone else is taken. Oscar Wilde" – Oscar Wilde
"A problem is often half-solved when it is clearly stated." – Dorothea Brande
"When you aim for perfection, you discover it's a moving target." – George Fisher
"The essential test of design is how well it assists the understanding of the content, not how stylish it is." – Edward Tufte
"Your goal is not to make an image. It’s to make a statement!" – Tom Asacker
"Without strategy, execution is aimless. Without execution, strategy is useless." – Morris Chang, CEO TSMC
"If you are not a brand, you are a commodity." – Philip Kotler
"Theories we believe we call facts. Facts we disbelieve we call theories." – Felix Cohen
"Things are only impossible until they are not." – Jean-Luc Picard Commander of the USS Enterprise
"Genius means little more than the faculty of perceiving in an unhabitual way." – William James
"A product can be quickly outdated, but a successful brand is timeless." – Stephen King
"A consensus means that everyone agrees to say collectively what no one believes individually." – Abba Eban
"Good decisions come from experience. Experience comes from making bad decisions. " – Mark Twain
"What we consider to be different depends on what we consider to be the norm." – Youngme Moon
"Grow a thick skin and be prepared to take criticism." – Mark Forrester
"You cannot not communicate. " – Paul Watzlawick, Psychologist & Philosopher
"If your mind isn't open, keep your mouth shut too." – Sue Grafton
"Overnight success takes years." – Tim Marks
"If you don't take a risk, that's a risk in itself." – Alberto Perlman founder and CEO of zumba fitness
"There are no commodity categories. Only commodity brands." – Eric Ryan founder of method
"Simplicity is complexity resolved." – Constantin Brancusi sculptor
"Authentic marketing is not the art of selling what you make but knowing what to make." – Philip Kotler
"There are bits of the literal future right here, right now, if you know how to look for them." – Gibson William, Author, technologist, futurist
"A proverb is a short sentence based on long experience." – Spanish Proverb
"It isn't what they say about you, it's what they whisper. " – Errol Flynn
"Creativity involves breaking out of established patterns in order to look at things in a different way." – Edward De Bono
"Example is not the main thing in influencing others. It is the only thing." – Albert Schweitzer
"A tiny change today brings a dramatically different tomorrow." – Richard Bach
"If you don't risk anything, you risk even more." – Erica Jong
"There is a better way to do it. Find it. " – Thomas A. Edison
"To be persuasive we must be believable; to be believable we must be credible; to be credible we must be truthful." – Edward R. Murrow
"Regardless of age, regardless of position, regardless of the business we happen to be in, all of us need to understand the importance of branding. We are CEOs of our own companies: Me Inc. To be in business today, our most important job is to be head marketer for the brand called You." - Tom Peters in Fast Company, 1997
“If you can build a powerful brand, you will have a powerful marketing program. If you CAN’T then all the advertising, fancy packaging, sales promotion and public relations in the world won’t help you achieve your objective.” - Al Ries and Laura Ries, "World Class Brands” in Executive Excellence, March 1999
“Branding is the hottest concept in marketing today, and it’s an idea that is not just for the deep-pocketed, highly glossed Coca-Colas and Nikes of the world. An increasing number of independent-business owners are embracing branding as the guiding philosophy for building their companies.” - Nation’s Business
"Your personal brand is a promise to your clients... a promise of quality, consistency, competency, and reliability." - Jason Hartman
"When most people think of a brand, they visualize a slogan, a logo, campaign, a promise, or a product. A brand is much more. Your company's brand is a powerful relationship fueled by a loyal belief system and knotted to the principle of providing exceptional value." - Karl Speak
"In fact, in these times of economic uncertainty, a solid CEO Brand is, perhaps, more important than ever." - AdWeek
"Even individuals need to develop a brand for themselves .... Whatever your area of expertise, you can take steps to make people think of YOU when they think of your field." - Accelepoint Webzine
“In a competitive world, organizations are realizing that only people can brand products or services effectively – that we are not just selling a branded product but a mass of branded people who support and deliver it.” - Helena Rubinstein, The Lab
"If you can, be first. If you can't be first, create a new category in which you can be first." - Al Ries & Jack Trout, The 22 Immutable Laws of Marketing
“A great brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product.” - Scott Bedbury/Nike, Starbucks
"It's clear that today's celebrities are becoming Brands unto themselves. But now even middle managers can get into the act. So if you see your VP of finance in the gossip pages next to J. Lo, don't be surprised." - Fortune
"Branding gives you an exceptionally effective way to broadcast who you are to your target market quickly and efficiently." - MultiChannel News
"Today, brands are everything, and all kinds of products and services - from accounting firms to sneaker makers to restaurants are figuring out how to become a brand surrounded by a Tommy Hilfiger-like buzz." - Tom Peters
"Branding adds spirit and a soul to what would otherwise be a robotic, automated, generic price-value proposition. If branding is ultimately about the creation of human meaning, it follows logically that it is the humans who must ultimately provide it." - David Aaker
“A great brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep – a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.” - Scott Bedbury/Nike, Starbucks
"Well orchestrated brands have depth and richness. They are like personalities, in that the best of them are made interesting and beautiful by a unique blend of interesting and beautiful component parts. It is only in the harmony of the whole that the brand lives." - Steve Yastrow, author Brand Harmony and host of the brand café at www.tompeters.com
"A brand's strength is built upon its determination to promote its own distinctive values and mission."
- Professor Jean-Noel Kapferer, (Re)Inventing the Brand (2001)
"Branding demands commitment; commitment to continual re-invention; striking chords with people to stir their emotions; and commitment to imagination. It is easy to be cynical about such things, much harder to be successful." - Sir Richard Branson, CEO Virgin.
"Organizations in the future will manage feelings, beliefs, perceptions and values - the asset of emotional capital - as the hidden resources with the power to translate people's knowledge into positive action." - Kevin Thomson, author Emotional Capital (1998)
"Your brand is a gateway to your true work. You know you are here to do something - to create something or help others in some way. The question is, how can you set up your life and work so that you can do it? The answer lies in your brand. When you create a compelling brand you attract people who want the promise of your brand - which you deliver." - Dave Buck

Some Interesting Quotations!

"What"s a brand? A singular idea or concept that you own inside the mind of the prospect." - Al Ries
"A house of brands is like a family, each needs a role and a relationship to others." - Jeffrey Sinclair, Brand Strategist
"Long-term brand equity and growth depends on our ability to successfully integrate and implement all elements of a comprehensive marketing program." - Timm F Crull, Chairman & CEO of Nestle
"The primary focus of your brand message must be on how special you are, not how cheap you are.  The goal must be to sell the distinctive quality of the brand." - Kerry Light, Brand Strategist
"Any damn fool can put on a deal, but it takes genius, faith and perseverance to create a brand." - David Ogilvy
"Well-managed brands live on - only bad brand managers die." - George Bull
"Your premium brand had better be delivering something special, or it's not going to get the business." - Warren Buffett
"Brand value is very much like an onion. It has layers and a core. The core is the user who will stick with you until the very end." - Edwin Artzt
"I am irresistible, I say, as I put on my designer fragrance. I am a merchant banker, I say, as I climb out of my BMW. I am a juvenile lout, I say, as I pour an extra strong lager, I am handsome, I say, as I put on my Levi jeans" - John Kay
"A brand is a living entity - and it is enriched or undermined cumulatively over time, the product of a thousand small gestures" - Michael Eisner, CEO Disney
"Brand is the 'f' word of marketing. People swear by it, no one quite understands its significance and everybody would like to think they do it more often than they do" - Mark di Soma, Audacity Group
"Your brand is created out of customer contact and the experience your customers have of you" - Stelios Haji-Ioannou, Chairman, EasyGroup
"We view the experience of a Krispy Kreme store (where customers watch their donuts being baked behind glass) as the defining element of the brand" - Scott Livengood, CEO, Krispy Kreme
"One of the biggest responsibilities of management is to look after the corporate DNA" - Andrew Rolfe, CEO, Pret A Manger
"The more you engage with customers the clearer things become and the easier it is to determine what you should be doing" - John Russell, President, Harley-Davidson 
Brand equity is the sum of all the hearts and minds of every single person that comes into contact with your company." - Christopher Betzter
'In a fast-paced world, today's popular brand could be tomorrow's trivia question.' - Wayne Calloway, American Industrialist, Chairman Of Pepsico Annual Report, 1989
'A brand name is more than a word. It is the beginning of a conversation.' - Lexicon
'Customers must recognize that you stand for something.' - Howard Schultz, Starbucks
'Brands are the express checkout for people living their lives at ever increasing speed.' - Brandweek
'Products are made in the factory, but brands are created in the mind.' - Walter Landor
'The customer is the appreciating asset.' - Federal Express
'Every status has its symbol' - Advertising Slogan
'Companies have to wake up to the fact that they are more than a product on a shelf. They're behavior as well.' - Robert Haas Of Levi Strauss
In the context of Living the Brand, purposes and values are not created, they exist - the issue is how well they are articulated and embedded. Nicholas Ind, Living the Brand (2001)
'A brand that captures your mind gains behavior. A brand that captures your heart gains commitment.' - Scott Talgo, Brand Strategist
'A brand is a set of differentiating promises that link a product to its customers.' - Stuart Agres, Young & Rubicam
'The three key rules of marketing are brand recognition, brand recognition, brand recognition.' - Anon
'A trademark is a symbol of a corporation. It is not a sign of quality ... It is a sign of the quality.' - Paul Rand 
'We are no doubt in the Great Age of the Brand.' - Tom Peters
'A global brand-building strategy is, in reality, a local plan for every market.' - Martin Lindstrom, Clicks, Bricks & Brands 
'You're just anybody without your identity.' - Grenville Main, DNA Design 
'A brand is the proprietary visual, emotional, rational and cultural image that you associate with a company or product.' - Charles R. Pettis Iii, Brand Solutions
'Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.' - Tom Chappell, Tom's Of Maine
'Brand handling synergy means developing and communicating your company's values and identity consistently.' - Martin Lindstrom, Clicks, Bricks & Brands 
'The visual image is a kind of tripwire for the emotions.' - Diane Ackerman
A lady, sitting next to Raymond Loewy at dinner, struck up a conversation.
'Why', she asked 'did you put two Xs in Exxon?'
'Why ask?' he asked
'Because', she said, 'I couldn't help noticing?'
'Well', he responded, 'that's the answer.'
- Source: Alan Fletcher, The Art Of Looking Sideways
'Experiences are as distinct from services as services are from goods.'
Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
Economics is (now) about emotion and psychology. Professor Robert Shiller, Yale.

Wednesday, September 12, 2012

Brand Boroline - Before the Sunrise!

According to me, at least what I have learnt during the strategic marketing project, is that Brand Boroline has two main problems to take care on an emergency basis.

One is the Marketing Channel problem. Their distributors or CNFs (Clearing and Forwarding agencies) as they call these, are not so proactive. The number of CNFs pan India is also very less. Right now it is somewhat around 850-900 CNFs for Boroline, where as Boroplus enjoys roughly around 2200 distributors pan India. The lesser the number of distributors, the lesser will be the number of retailer, in this case druggist & chemists, retail shops and kirana shops. Which in turn will contribute to the lesser coverage of the larger geographical  market.

If a customer somehow gets motivated by any type of marketing communication and goes to any retail shop and asks for a tube of Boroline, but the shop owner shays that they don't have any, this will make the customer turn away from the brand for a quite long time. Because there are so many similar competitor products available in the market. If I don't get a tube of Boroline, I won't bother much and rather happily come back buying a tube of Boroplus or Borosoft.

Buying Boroline is not a compulsion for the customers. It is an option. If I am a die hard loyal customer of Boroline (which happen mainly in north eastern Indian market) then only I might wait for another day or two for the retailer to get it or will search in another two three shops for a tube of Boroline. But this is unlikely to happen for a product priced INR 22/- and that too an OTC pharmaceuticals (antiseptic cream) product. Especially when the "liking" for the product in TOMA of the customer is not that delightful!

Most crucial is the fact that Boroline has not been able to create the same kind of brand image in the customers mind as Dettol or Burnol has made. If a person thinks antiseptic liquid he/she is thinking about a bottle of Dettol. Definitely Savlon is there, but I really doubt if the image of the Savlon bottle comes in the mind of a customer the moment he/she thinks about antiseptic liquid!

No body buys a bottle of Dettol or a tube of Burnol for luxury or as an option. It is a Compulsion. Because both the products are purely functional in nature. When you burn your hand while cooking you really don't go to a departmental store and run through the options available. You rush to the nearest drug store and blurt out asking for a tube of Burnol.

But Boroline being the same quality and standard of an antiseptic cream was not able to create that level and strength of TOMA in consumers mind. I think it is definitely a point to be taken seriously and worked upon!

Second issue is the approach taken up by the company for its IMC purpose.

They have gone for many OOH advertisements, Hoardings, Banners, metro glow signs, druggist glow signs, pamphlets, leaflets, other POP materials like, Wobblers, Danglers, Auto rickshaw Back Panel Ads, Bus Side Panel ads. But I feel that some of these actually have diluted their brand value. If you are providing high tech glow sign ads in metro stations and again giving the same ads at the back panel of auto rickshaws, it creates kind of a image confusion. One moment it looks like a premium brand, and in the next moment when you see an ad on an auto back panel, you feel like it is some cottage industry product, some Himalayan Ayurveda product, which have neither credibility nor premiumness.

It all depends on where the company wants to go with the Brand. If GD Pharma is happy with the fact that Boroline is a mass product, not a class product then probably the Auto back side ads are fine. In fact in that case those are helping the brand to reach both the urban and rural, lower middle class, middle class and poor class of people. But if they do not want that, then they definitely need to think beyond all these.

For me, I have issues with the national level brand ambassadors they chose as well. Sakhshi Tanwar and Raima Sen. I really doubt if those two actresses were a good choice. Because if it was, then why almost 87.5% students of our strategic marketing class didn't even know that such a brand exists!

Boroline Antiseptic Cream was the winner of the Super Brand tag for two consecutive years. But if they do not reap the benefit out of these things, then how else they can dream of reaching every household of India.

My take on Brand Boroline:

The Boroline people might rope in yesteryear actress Sharmila Tagore. The similarity between the brand essence of Boroline and Brand Sharmila are awesome. We all know that Sharmila Tagore is hailing from Kolkata (former Calcutta) and later became famous all over India because of her excellent and charming contribution in Bollywood movies. Though originally a Bengali, she is now the apple of crores of movie loving Indians. Likewise Boroline is a brand originated from Kolkata and now aspiring to completely win over whole Indian Antiseptic Cream market.

Again they have an excellent option to rope in Yuvraj Singh. As we know, he was diagnosed with cancer some time back. Though very unfortunate for a class of player that he is. But no one can predict the future. Anyway, the good news is that he has almost recovered from his ailment and started playing for Indian International Team once again. In general, a cancer patient (recovered or not) is not allowed to use any OTC pharmaceutical cream or ointment without a close supervision of his/her doctor.

So if GD Pharma can reconfirm from the Indian Medical Association, that, even a cancer patient can use Boroline Antiseptic Cream for external uses, then they can try to strike the deal with Yuvraj Singh. He is a strong player, both psychologically and physically. His association with the brand will give Brand Boroline the deadly combination of Dependability, Endurance, Strength, Trust, Quality, Regaining the lost reign (that's what exactly Boroline also aiming to do).

Along with roping in new brand ambassador, the GD Pharma need to seriously work on their advertisements. They need to give the work who does it the best. Why don't they go for Lowe Lintas or Ogilvy & Mather!

After all Marketing is all about knowing your customer's need better than the customer themselves and providing the same just the way they want. Marketing Managers should work out their strategies like a "Mother", who knows what her children (customers) want to have that day and makes the lunch and dinner menu plan accordingly!

As it is rightly said by Philip Kotler - "Authentic marketing is not the art of selling what you make but knowing what to make."

Boroline Antiseptic Cream - The Saga of the Pioneer Brand!

It was the very first day of our Strategic Marketing class. We were told that, we will have to choose one product of a company, from any industry. We have to work on its existing strategic marketing plan and also have to come up with a better and effective strategic marketing plan for the company. Obviously the product needs to be predominantly a troubled one. Otherwise why should we be spending our time and energy to find flaws in the existing strategic marketing plan?

As soon as our professor mentioned our respective groups and i found that my team mates were still using their mental search engine to come up with a good product to finalize as our product for the project. Immediately I took the rare opportunity and proposed the name "Boroline Antiseptic Cream" to my team mates.

At first they were a little confused but I tried to convince them by saying that I worked there for more than one year and I have some insider info etc etc. They ate the bait and I got the chance to make my long nurtured dream to come true.

Why am I so nostalgic and sort of emotionally attached to this company or the brand? Yeah I know, most of you might be wondering "why Boroline"?

Because I had the first interview of my life with GD Pharmaceuticals Pvt. Ltd. and I cracked the interview! I joined GD Pharmaceuticals as a Marketing Officer. I was amused to know that I was the only female employee they had in their 80 years of history!

Honestly, I am still proud of my first job and GD Pharmaceuticals Pvt. Ltd. And I will feel the same till the last breath of my life. They believed in me and gave me a job in marketing department, when i only knew how to spell the word 'Marketing'!

So now you all know why I decided to go on and take up Boroline as the topic of the strategic marketing project.

When I worked in GD Pharmaceuticals Pvt. Ltd., the manufacturer of Boroline Antiseptic Cream, I realized that the veteran brand is suffering from many issues and problems. Which I felt could possibly be dealt with.

First to give you a small intro about the Company and the Brand... GD Pharmaceuticals Pvt. Ltd. is the first Indian company to manufacture an antiseptic cream and the name of the product was 'Boroline'. It was the year 1929, when they first manufactured Boroline. Time passed by and the Product transformed into a Brand. It reigned the Indian marketing with 100% market share. Mainly the North, East and West India completely fell in love with the Brand.

People, the customers and the consumers, invested their trust and loyalty in this brand. In return GD Pharma maintained the Best Quality, Texture, Perfume, Packaging and the overall Heritage of being there for 80 long years. Every year the price hiked for everything but Boroline. The Boroline people as they call themselves, never emphasized on profit margin. It is the satisfaction and delight of crores of people which drove the whole team to work harder and better to retain the essence of Boroline Antiseptic Cream.

But the market scenario changed. Many companies entered the lucrative antiseptic cream market with their products. They came up with charming perfumes and a new value proposition - "non sticky antiseptic cream"! Many a consumers found it interesting. They were a little annoyed by the sticky nature of Boroline. Even they were delighted to experience the flowery perfume of some new antiseptic creams.

We as a consumer and customer of brands, never dive deep into the real value propositions of each brand and try to sort out the really useful propositions from the nonsense ones. This is the problem. But we as a marketing manager cannot really blame our customers bluntly. It is our responsibility to educate our customers about these. The more knowledgeable the consumers are the easier to show them the core value of the brand. Once they realize it, we don't need to push them or allure them to buy the product any more. Just some recall aid and some ads to keep the image alive will be fairly enough.

The problem with Boroline was, consumers knew it very well that the product by quality is excellent. But they do not feel proud of using Boroline. Because its perfume is too strong, and the texture is too sticky. The analogy is almost like the good old house wife. The husband knows it very well that no one can cook food and take care like her, yet does not feel up to take her to the socializing parties.

During the project work I realized that Boroline is not being able to connect to the younger generation. Even the mid age office going people also don't use Boroline as they use Boroplus or Borosoft during the winter season. Even if they use they don't use it during day time. They use it only during night time. In this era of pure consumerism,young consumers think that Boroline is a good old product, "granny brand". Useful but obsolete!

Communication is the main issue. Be it the marketing channel communication gap or the direct to consumer communication gap. All the effort the Boroline people are putting in to produce the excellent antiseptic cream, are not getting properly communicated to the end users. Pretty unfortunate!

The Brand Awareness is quite high in the eastern, north-eastern and western India. But the Brand Relevance is painfully low. Only a certain number long time loyal customers are still sticking around the brand. Others, especially the newer generation, they simply have moved on to either Boroplus or Borosoft. Even a certain percentage of Gen Y consumers do not like using antiseptic creams on their face as a all round winter cream. They use antiseptic cream only when they get any cut or wound or bruised skin problem to heal quickly.

During the project work we came up with a few crucial issues with the Brand Boroline viz, Marketing Channel Issues, Integrated Marketing Communication Issues and Brand Stagnancy Issue.

In my next post I will be elaborating the above mentioned issues and my proposal to the company to revive the brands image.

Thursday, August 30, 2012

Pepsi Vs. Coke - The Ad Kurukshetra!

We are no more a stranger to the fact that Coke and Pepsi enjoy their Brand rivalry pretty excitingly. I personally feel it's like kind of "Yugalvandi", a deadly combo of emotion and money.

And none of them are ready to sacrifice a single block space in a customer's mind and taste-bud without fighiting.

Now both the challenger brands are fascinated with the Ball Game. As they fight, they try to convey that "It's all about balls : and the size matters". They have thrown the ball in your court -  for you to decide how you want to play the game! It all depends on whether you are a fan of cover drive or corner kick!

Earlier 2011, Coca Cola announced that they have roped Sachin Tendulkar in as their "Happiness Ambassador". Please do not let your self confused with the concept of Brand Ambassador with Happiness Ambassador. Brand ambassadors are for the local markets. and Happiness ambassadors are for the global market, an icon for the larger corporate brand.

Coke came up with a brand latest ad together with their new ad agency Lowe Lintas. The story begins like -

(to be continued, need some time to come up with a good article, too busy with college assignments and projects. Hold on friends, I promise I will come up with something worth waiting for)