Thursday, August 25, 2011

THERE’S NO PLACE LIKE INDIA

We all love ‘Anna’! He seems to have united India and its youth. But is India really one, especially when it comes to business? This is one country where all the laws of marketing will fail, because it’s so diverse. If you have just one theory, then it will not take you anywhere. India changes every 200 km. Yes, a few basics remain the same across India, but a lot changes too. For starters, language changes (we have 192 official languages and dialects), culture changes, traditions and festivals change, food habits change. If this is not enough, think about it – even the geography and political views change. Yes, it is vast, but it is not an easy market. Only the hardy marketers will be able to survive and thrive here.

THOSE WHO MISUNDERSTOOD INDIA

A lot of multinationals have come into India but failed – not because their products were not good, but because they failed to understand India’s culture. Globalisation has been the new trend, but ‘standardisation’ will not work always. As a marketer, you need to be sensitive to each culture’s identities and its unique regional preferences and customise your product offerings.

Our local markets are not barren as many multinationals thought. There are very strong players in almost every local market. Take the case of Kellogg’s. Apart from the taste not really matching the Indian palette (we like to put warm milk with sugar in our cereals, unlike the west that has it with cold milk), it under estimated the presence of local competitors like Mohun cornflakes (priced lesser than Kellogg’s) and Champion (whose price is almost half as that of Kellogg’s). Retail chains may never be able to understand the bonhomie that people share with their local kirana shops or the Mom & Pop stores as they are popularly called in the West. They share a bond and enjoy a mutual level of trust (giving things even on credit to their favorite customers) that big retail chains will never be able to enjoy. CavinKare challenged the multinationals in various segments. Earlier, it was Clinic shampoo and Fair & Lovely fairness cream (both from HUL) that were touted as the only good options. But homegrown brands like CavinKare are giving them a tough fight. CavinKare used sachets to sell its shampoos. It understood that the consumer was not willing to buy a whole bottle. But a small sachet was a luxury she could indulge in. [Today, 40% of the shampoo market consists of sachet buyers.] It used India’s weakness for ayurvedic products and ensured that its fairness cream Fairever – with saffron and milk – promised not just fairness but also good skin, and quickly cornered a significant chunk of the market share from the giant HUL and its brand Fair & Lovely. So strong has been this positioning that it made Fair & Lovely change its positioning from “badle aap, badle zindagi” to “gorepan se kahi zyaada, saaf gorapan”, meaning “not just fairness but a clear skin too”. CavinKare understood the Indian consumer and her changing needs, and this homegrown brand has become a formidable competitor today.

Going the ayurveda way, Emami too has managed to keep the biggies out of the way with unique Indian brands like Boroplus, Navratan oil and Fair & Handsome cream, that command a significant market share today. Marico’s Parachute oil is way ahead of HUL’s Nihaar. Agreed. Products like hair oil are distinctly Indian and MNCs may not have an edge here, but even when it comes to products like toothpaste and hair color, our Indian brands are doing a pretty good job! Dabur toothpaste is giving Colgate and HUL a tough fight. In the hair color sector, Godrej still has the largest market share (more than 30%),with L’Oreal coming a distant second (a market share of 19%).

Just because a brand has a foreign tag is no guarantee that it will be perceived as superior. It needs to match the local sensibilities too. KFC entered India with its American menu of chicken wings and wraps in Bangalore. The Indian consumer did not identify with it and it had to pack its bags and leave. In 2004 when it did come back it had a vegetarian menu, rice meals and Indianised chicken recipes. It survived.

Tupperware designed a beautiful ergonomically sound, rectangle spice box for the Indian housewife. It bombed. She was used to a round one for years and however good the rectangle box it did not work for her.

Marketers with a keen sense of observation have succeeded here. Maybe not many people can afford an Omega or a Rolex, but people love to own a good watch, and no one grabbed this opportunity better than Titan. It realised that the only watches available in India for the low-end were poor in quality and lacked after-sales services or even warranties. Today, Titan dominates the watch market and offers very good quality watches with warranties and service networks for not just the consumers at the low-end but also, pure gold watches for the ones with deeper pockets. This local hero is a big, dominant player.

These local champions have overcome all obstacles and have made their own roads. If Indian roads were not good, then Tata Motors came up with cars and trucks that had a strong and rigid suspension system. Not state of the art, but its vehicles had easy maintenance. Poor infrastructure could not deter Amul from going ahead and conquering the market. If farmers could not reach out to the company, then the company decided to go to them. Amul is an amalgamation of more than 13,000 cooperatives. It installed Automatic Milk Collection Systems in the villages, where farmers went and deposited their milk. It was immediately measured for volume and fat content and the farmer was paid instantly. It worked well for both the parties, and till date, Amul rules the Indian markets. Open your refrigerator and you will find the Amul butter packet there too!

The reason some Indian brands have become so strong is that they have understood this country and its problems well, and have found innovative ways to work around them. ITC (which began operations as an MNC in India in 1910, but whose ownership has progressively Indianised over the years) – has been in India for close to 100 years now and has understood its problems like no one else has. It realised that farmers had no access to markets or any information about markets. So it installed a PC in the house of the largest farmer in the village, providing him and the rest of the village, a window to the world. This not just improved the knowledge and awareness of the farmers, but made them fall in love with ITC. Any competitor would find it tough to break this bond. It also ensured that ITC got a steady supply of good quality soybean for its processing plant.

It takes just one strong homegrown brand to shut out a huge multinational. Only those have got it right can do so.

THOSE WHO UNDERSTOOD INDIA

While many MNCs faltered because some assumed the Indian market was behind their home market, or thought it was not yet ready for superior products, other failures thought that the “foreign” tag would be enough to attract the consumers. Thus they became myopic and failed to adapt or innovate. Such brands failed or were forced to leave the Indian market, even as so many local brands filled the void. However, there have been a whole lot of MNCs who have kept their eyes open and survived. They realised that the product could be made in any part of the world but it was important that the product be “Made FOR India” for it to succeed in this market.
McDonalds knows that food is the most culturally sensitive product, and everywhere it has gone, it has ensured that its menu is customised to suit Indian tastes. Pizza Hut has a full-vegetarian restaurant in places like Gujarat et al, where the population is mostly Jains. Nowhere in the world will you find another only vegetarian Pizza Hut. LG believes not just in localisation but micro-localisation. Its microwaves have an idli mould for the south- Indian market, and a plate for heating kulchas for the north. It sells bright colored refrigerators in Punjab, for it does not get stained easily with the strong spicy and oily cooking of that region. Samsung’s phones now have an Indian calendar too. Perfetti Van Melle knew its old distribution system was weak, so it created its own network of 5000 distributors, did not give up on the rural market and today, is way ahead of competitors. Hyundai saw that most foreign car manufacturers were selling their old models in India. It entered with new models. It even customised the Santro to suit Indian roads. It used its technical expertise, which the local manufacturers did not have and today, it holds the number 2 spot in the automarket – just behind Maruti, which has been in this market for 25 years.

THOSE WHO WILL BE THE NEW MNCS

As these homegrown brands learnt the hard way to survive in developing markets like India, they found a whole new set of business opportunities opening up for them in other developing markets. These markets had similar problems and opportunities. So Tata Motors found that its vehicles were in demand in many African countries where the infrastructure was not good either. ICICI Bank and many others too saw an opportunity to do business in the emerging markets of Sri Lanka, Africa, China, Bangladesh, Indonesia et al. They have mastered the art of functioning and adapting in difficult markets, and are thriving like never before in these places. These new emerging markets are the future of business, and with markets of the developed world shrinking, it is only those companies who can do business in these very markets that will survive and thrive. The MNCs of the developed world are suddenly realising that the companies they once brushed aside as small homegrown brands, have become the new and powerful multi -national giants of the emerging markets.

India is diverse and difficult. But it has proven to be an apt training ground for its homegrown brands, to prepare themselves for the future. Those who have succeeded and survived here, will be able to survive anywhere, after all there is no place in the world like India!

Thursday, August 11, 2011

LOVE ME OR HATE ME, BUT YOU CAN’T IGNORE ME

This is a brand that has made the world sit up and take notice, for not only is it worth millions, but it also teaches us important lessons in Brand Building. The day she changed her name from Stefani Joanne Angelina Germanotta and rebranded herself as Lady Gaga, a star was born, both for the music world and the business world. Single handedly, this ‘Lady’ has shown the world how to build a brand and how to do business in today’s crowded market place.

A BUSINESS MODEL OF THE FUTURE

Lady Gaga is not just a singer, she is the way of doing business in the future. If you want to ensure that your brand will survive in 2025, it’s time to learn some quick lessons from the Lady. She understands the system the best.

The business model of the future has some new rules now. However, some ground rules never change. For starters, your product has to be good. Everything depends on this. Like all good brands, she first ensured that her product is good. Yes, her music is good and she can sing. She works hard on her lyrics, writes them, conceptualizes the music, the video and the costumes. Working on her piano, she ensures that her “core product” i.e. her music is of great quality. We all know one simple fact; no amount of brand building will do you good if your product is not world class. Secondly, you need to understand your audience very well. You need to keep a finger on the pulse of the audience. No one has been able to understand the market the way she does.

She knows what excites them and what intrigues them. Many may find her costumes outlandish, but they work for her and her fans wait for her next appearance, just to see what it is that she would wear next. Whatever she does, she has them eating out of her hands. The third lesson one learns from this entertainer is the benefit of staying “in-the-news” all the time. This is not an option, but it’s a necessity of today.

In today’s market place, if you are ignored, you are doomed. That is one thing this Lady has mastered. She cannot be ignored. Every appearance of hers is well thought of and crafted. Be it a bird’s nest, a model of the solar system on her head, or be it her meat dress, she never fails to grab attention. In fact, she will go to any extent to grab attention. In one of her interviews, she recalled an incident where, during her early days of struggle, she was playing at a bar (in USA) filled with drunken NYU students and no one paid a hoot to what she was playing. She says, “I started playing in underwear at the piano,” and suddenly everyone was looking at her and listening to her song.

Just creating a buzz is not enough; you need to know the right places to create the buzz. The audience of the future will be spending a lot of time in cyberspace. Whenever Lady Gaga makes an appearance, she does it with one intention – to create the maximum buzz there. With over 145 million blogs in cyberspace, more than 50,000 new blogs being created everyday and over one million new blog posts being posted each day, the internet is a very crowded place today. To get noticed, to be written about by maximum people, requires a very sharp marketing mind. Gaga has her moves scripted so well, for she knows exactly how to get talked about. Just a great product will not get you noticed. You need to get the tongues wagging. Gaga cares not whether or not you like her, all she cares aboutis the degree of buzz that every act of hers will generate. While she works on her music, she meticulously works on how to make clips that would be lapped up by YouTube, how to dress and what to speak, so that the twitter world will start chattering! Brands too have to ensure that if they want to survive, they must have a strong presence in the cyber world, for the audience of the future is going to be here.

Her every act is a practiced, well prepared and well targeted marketing gimmick, to help build the Lady Gaga Brand. She obsesses about every little detail and it pays. Businesses of tomorrow have to remember, that if their products are not being talked about, they would disappear soon, however good their quality.

CHANGE YOURSELF AND YOUR CUSTOMERS

To be constantly talked about, you need to keep doing new and different things. Your brand needs to keep innovating all the time to grab that “top-of-the-mind” awareness in the consumer’s mind. Be it Madonna, or Kishore Kumar, or Lady Gaga or Big B. They all kept experimenting, kept changing, kept reinventing themselves and dared to do things others would not. They survived. Probably a lot more talented artists didn’t.

There is no perfect recipe for success. In today’s market place, brands need to move quickly. They need to know what’s cool, what’s new, and change themselves accordingly. At Cannes 2011, in June, Publicis & Contagious introduced a new concept called the “Five Percent Club”. They urged brands to take risks and invest 5 percent of their media spends into something different, something creative, outrageous and not just depend on the mundane, 30 second advertising commercial to build their brands. Heineken found a new way of engaging viewers during a football game. No, they did not just advertise, but introduced an interesting iPhone application, which rewarded viewers with points (that they could redeem later) every time they guessed the winner correctly before the game ended.

To survive, one needs to change their way of thinking. The companies of tomorrow will only be those who are willing to scrap conventional ideas, who are willing to try out new stuff and most importantly, who are willing to fail – just like Gaga who has never been spotted in an ordinary pair of jeans ever. She is always dressed to suit her image, for every second she is doing some different stuff – with just one purpose – to be noticed. Your marketing plan too should be such that every penny spent is for the purpose of making your brandstand distinctly apart from the competitor. Get noticed, you will get customers.

Until now, it was the job of the advertisers and marketers to change the audience. Before 1948, diamond rings were not synonymous with engagement or marriage the world over. Then came a campaign, “A Diamond is Forever,” and changed our thinking forever. Even in India, marriages used to be traditionally associated with gold jewellery, but De Beers, with its intelligent advertising changed that too. By linking the eternity of a diamond (it’s the hardest substance on Earth) to the eternity of a bond, it changed cultures. While everybody in America was manufacturing, marketing and selling long, sleek cars, the VW Beetle changed the people’s perceptions with the help of its “Think Small” ad campaign. Santa Clause used to be depicted as a skinny, stern, and scary figure, until Coca Cola created the chubby, cute and cherry Santa, and changed the perceptions of the world. All sports shoes were more or less similar until Nike changed it all. It is impossible to differentiate vodka on the basis of mere taste, but Absolute differentiated its product on the basis of its unique advertising and created a niche market where none existed. Marketers have changed audiences and their perceptions, but this new generation of customers is different & marketers need to change their ways to adapt to this audience.

Times are changing fast and so are the rules of marketing. Today, you need to stand out, shout out, and look out (for new trends) or else be prepared to be shut out (forgotten) by the consumers. The biggest fear for a brand is if it fails to get attention. Lady Gaga and other shrewd marketers know only one success principle, “Love me or hate me, but you can’t ignore me.”

Thursday, June 16, 2011

MAINE KAROO TO CHARACTER DHEELA HAI!

What makes this song so entertaining? Is it Salman or is it the lyrics or both? Probably both. The words were as important as Bhai’s unique style in making it such a big hit. Mind it, the language you speak can change the fortunes of your brand, your company and your movie!

MUNNI AND SHEILA, TO MCDONALD’S & SONY

Language has the power to attract and this new language has taken everyone in its grip & its here to stay. From Bollywood to the business world, from babes to brands, everybody is using it. Hinglish is the language of today. It’s trendy, young and happening and it’s keeping the cash registers ringing for all who use it. Today’s most popular songs – from “Munni darling” to “Pappu can’t dance saala” to “My name is Shiela” and the current craze “...Character dheela hai” – have Hinglish lyrics. It makes the songs catchy and very entertaining and the audiences love them.

Not just Bollywood, smart businessmen the world over have realized that it’s this “street English” that works like magic to attract the consumers, so much so that even foreign brands are speaking it. Pepsi now says “Youngistaan ka wow!” Cadbury says it is not just a chocolate but “meetha” to be had after meals (a typical Indian custom). Domino’s for years has been asking “Hungry kya.” Lehar says “Control nahi hota,” and they all have successfully managed to connect to their customers! The verdict: The one who speaks the language the customer loves, rules.

HINGLISH – FOR SURVIVAL

“Kitne aadmi ko text karna hai?” Wondering which company’s tagline this is? Not Airtel, Aircell, Vodafone or even Idea. It’s the tagline of Rogers, Canada’s leading telecommunications company. Foreign brands too are using Hinglish to reach out to the Indian consumer in foreign lands. Bell Canada called on its consumers to “Put some bang in your Bhangra” as it celebrated Baisakhi with them in Canada. Across the border in America, McDonald’s sent small cards to various Indian households asking them to taste its ice-creams and shakes, with a tagline, “Taste ki baat hai.” And the Indian- American population loved it.

Wells Fargo used Hinglish too, on its hoardings in America to reach out. “Safalta aapki, solutions hamare” was the tagline plastered on various billboards.

Hinglish today is a global language and even the Brits have accepted it. Demos, an influential British think-tank, came out with a report stating language blends like Hinglish were the way forward, adding, “With non-native English speakers set to top two billion in as little as five years, Britain’s influence, relationships and access to markets across the globe are at risk unless we change our outmoded attitude to language.” It’s no more the Queen’s English; rather, to survive, one needs to master “The Queen’s Hinglish,” the new language of the new culture. This is the new law of survival. This is the way to reach out to your customers.

CHANGE YOUR PRODUCT, NOT JUST YOUR LANGUAGE

A famous Indian proverb says, “If you live in the river, you should make friends with the crocodile.” The one who adjusts best, wins. The one who understands not just the local language, but the local culture and way of life too, beats competitors. When Whirlpool launched its washing machines in India, it realized they were not suitable for washing saris. It immediately redesigned them to suit local preferences. KFC today has a vegetarian thali. An outlet that gained popularity because of its fried chicken, has removed chicken from some of its dishes to suit local tastes. Smuckers Foods of Canada has a ‘Golden Temple’ brand of atta, for the brand name – leaving the political incorrectness of it aside – plays a big role in motivating NRIs to reach out for it.

Intelligence is not measured by IQ scores, but by one’s ability to adapt. The most intelligent species are those that have found ways to adapt, and no one has adapted better than humans, who have learnt to adapt to almost any situation, any climate – so have some of the most successful brands. Nokia made dust resistant keypads for the Indian market. Sony built dust resistant TVs for India. HLL understood the rural consumer and introduced shampoos in sachets priced at Re.1, which became big money spinners for the company. Subway serves no beef in India.

The biggest of global brands with the best of products had to think local and even change some of their best strategies to succeed in foreign lands. The ‘Dell Dude’, a know-it-all, speak-fearlessly-to-strangers, kind of character was used by Dell on American TV – and he was a big hit. But this cool guy was not featured in Japanese ads for they would not appreciate a character like that.

Unilever launched coconut ice-creams with fruits in Bangkok to suit the Thai palette. Wall’s ensured that its ice-creams tasted different in Asia; no wonder in 2000, its share of the Asian market was 41% as compared to 15% of Nestle’s. Disneyland realized that if it had to make money in Hong Kong, it had to lower its prices, change its decor and settings to suit local tastes. Starbucks is making sure its outlets blend with the culture of the place and look less foreign. Just because it worked in one place is no guarantee that it will work everywhere, and brands should be ready to discard even their best ideas if they don’t match the local market’s choices.

Maxwell House Coffee was one of the first to realize that it pays to understand local culture. It was one of the first to pitch its coffee directly to the Jewish consumers. Nine years back, it noticed that sales of coffee fell drastically among Jews during ‘Passover’, a Jewish festival. It quickly hired an Orthodox rabbi who declared coffee was a berry (a fruit) and hence was totally acceptable to be had during the 8 days of Passover. It even came out with a booklet, ‘Passover Haggadah, Brought to you by Maxwell House’. This instantly made Maxwell an integral part of the Jewish community and its traditions. Today, anybody who wants to get instructions of how to celebrate Passover reaches out for Maxwell’s booklet, which can be picked up for free from the ‘Passover aisle’ or the ‘coffee aisle’. The very same coffee aisle which some years ago no Jew looked at during Passover, adapted and survived.

The ‘Dirt is good’ campaign of Unilever started in UK, but the company took extra efforts to ensure that the campaign was adapted to suit the local cultures of different countries; and it become a hit the world over. ‘Daag ache hai’ was just as loved by everybody in India.

Nike, Coca Cola and many other MNC’s entered India with their best global advertising campaigns. None worked and succeeded like the ‘Bleed Blue’ or the ‘Thanda Matlab Coca Cola’ campaigns, which instantly made the brands a part of the local culture.

Similarly, Dove’s ‘Real Beauty’ campaign succeeded in the West, but failed in China and Japan, where traditional views of feminine beauty still hold strong. Wizard of Oz, the wonderful children’s book has been translated into 40 different languages but adapted to suit local cultures. The Tin Woodman was replaced by a snake to suit the Indian culture; in the Russian version of the book, a man-eating Ogre was introduced.

Motorola launched a phone for the young in India and named it Moto-Yuva, and its key feature was a Hinglish T9. With SMS catching up, the company ensured its brand was in-sync with the language of the youth. Brands that adjusted, stayed; others vanished. Bollywood has adjusted too. More than 30 films released this year have Hinglish titles. ‘Always Kabhi Kabhi’, ‘Bhindi Bazaar Inc’ to ‘Short Term Shaadi’, all are riding on the popularity of Hinglish to make their films sound young, trendy and interesting. It’s the title (much like the tag line in advertising) that matters too – not just the stars.

It’s said the wise are like water, which moulds itself according to the pitcher. Shakespeare never hesitated to modify theEnglish language and coined almost 1600 new English words, borrowing freely from French, German, Latin etc to help him describe better and make his narratives more engrossing and effective. Even though a lot is being debated about whether Hinglish is good – for eventually it distorts both Hindi and English – but as marketers, we need to know the pulse of the audience; and he loves this language. So do not hesitate to change and adapt to make your marketing plans more effective... Even Shakespeare did it and no one questioned him!

Adapt to the local language, the culture, to sell your goods and ideas; and if anyone points a finger, well, sing in Hinglish, “Shakespeare kare to OK, maine karoo to saala character dheela hai!” Change your language, adapt your products and you will not only survive, but lead!

Thursday, June 2, 2011

IT TAKES ‘3’ TO TANGO!

I’s summer once again and time to enjoy nimboo pani, mangoes, long summer holidays, trips to cool places to beat the heat. But it seems the one thing that people love the world over is going out for a good movie. Yet, in 2009, the number of films released in theaters in USA dropped by 12%... Then came the biggest hit of all times – Avatar. Ticket sales zoomed. The number of people rushing to theaters increased to crazy levels. Reason? Well everyone wanted the catch the 3D version. Despite tickets of the 3D version being priced higher, 75% of Avatar’s revenues came from them. After all, it was the only 3D movie running at that time and people just couldn’t get enough. Avatar grossed $760 million, and Fox Studios, made all other production houses sit up and rethink. Fox had shown how to revive a business.

Movie theaters are today are filled with 3D versions of films. From ‘Cars 2’, to ‘Happy Feat 2’, to Steven Spielberg’s much awaited ‘The Adventures of Tintin’, all are getting ready with their 3D versions this year for your increased viewing pleasure, and also for increased box-office collections (hopefully!)It takes 3 to increase profits!

AVATAR – A SAVIOR!

An ‘Avatar’, according to the Hindu mythology, is a descent of a deity from heaven to earth with the specific purpose of bringing back righteousness (dharma) to the social and cosmic order. Avatar, the movie, couldn’t have been more appropriately named. It’s helping a lot of businesses survive, and proving to be an ‘Avatar’ for them.

The Consumer Electronics Show in Las Vegas is the most awaited gadget exhibition of the world. This year, almost every big brand had – yes, you guessed it – a 3D version of its gadget! Chris Yewdall, the CEO of DDD Group, which is the 3D consumer technology licensing group, said “...the market for 3D devices is rapidly expanding into other segments including PCs, tablets, and smart phones.” According to research, a growth of 132% is expected in 2012 with more than 100 million 3D TVs selling in 2014. Not surprising that from Samsung to Lenovo to HP, all have entered into partnerships with DDD. Toshiba is ready with its 3D laptop, Sony and Samsung with their 3D TVs, Nintendo with its 3DS video game. From 3D photo frames to 3D cameras, to 3D mobile phones, there seems to be a sudden boom in 3D devices. The best part is that most of them do not require you to wear the bulky 3D glasses to enjoy the 3D effects.

The battle between competitors now seems to have shifted to the 3rd dimension! 3D is now being marketed as the “novel” additional feature to lure customers away from competitors. Future growth in market share depends on the 3!

“IT’S 3D ALL THE WAY”

If marketers are there, advertises cannot be far behind. On May 27, 2011, Arla Foods-owned brand ‘Anchor’ decided to celebrate its 125th birthday with the launch of the first ever 3D cinema ad. It knew this was a sure shot way of grabbing headlines! When it comes to special occasions, 3D seems to fit the bill, for another company too went 3D to celebrate its 125th birthday.

On May 11, 2011, Coca Cola too completed its 125 years; and to mark the occasion, it covered its head quarters, a 26-story high building (402 ft) with canvass and projected 3D images showcasing its 125 years in the business. It ‘opened happiness’ in 3D!

This is not the first time that advertisers have experimented with 3D. In 2010, in June, the Sun newspaper became the first newspaper in UK to publish in 3D. It had a 3D page 3, a 3D editorial, and even 3D ads. It asked its readers to keep their 3D glasses (provided free with the edition) handy for viewing future editions with amazing 3D pictures of the Football World Cup. Last year, again in June, Shiyan Evening News brought out China’s first 3D Newspaper. Not to be left behind, in June last year too, India experimented with 3D too, with Mid Day launching special editions with 3D ads, followed by Rajasthan Patrika and Dainik Bhaskar. An expensive but interesting innovation; if used intelligently, it can be the tool for brands to help break the clutter and stand distinctly apart from competitors.

One medium that has been doing this very successfully is the billboard. Recently, Vodafone captured the attention of the passers-by with its adorable Zoozoos bursting out of billboards (in 3D) announcing the launch of its 3G services. For years, numerous 3D innovations on hoardings have attracted consumers and helped brands break the clutter. But the question is, for the other mediums too, is 3 their route to success?

For the manufacturing industry, it seems things will never be the same again, thanks to 3D. Soon, printers will be available that will print in 3D – or in other words, will allow you to manufacture and create things in the comfort of your home. From jewelry, to customized football shoes , to mobile phone covers to almost anything. This new technology is going to transform the whole business of manufacturing. Earlier, these printers were used to make prototypes. Today, more than 20% of the output of 3D printers is the final product. The future, as many see it, would have consumers downloading a design the same way as they download music, customizing it to suit their tastes and pressing “” to get the product of their own choice right in their homes! Who needs a factory now, to manufacture – just a printer will do!

THE MAGIC OF TRIANGLES

‘3’ seems to have a mystical magic attached to it. Be it movies or real life, having 3 people in a relationship makes for the most intriguing of stories. Be it the royal triangle of Prince Charles, Princess Diana and Camilla or be it some of our greatest romantic films. If there is a triangle, the effect is magical.

Hollywood (with its ‘Gone With The Wind’ and ‘Casablanca’) to Bollywood (with its ‘Silsila’ and ‘Saagar’) viewers have been glued to the screens on the promise of 3. Triangles have an irresistible and mysterious charm.

Be it love triangles or the Bermuda Triangle, which for years became the source of supernatural stories, with popular folklore blaming paranormal activity to be responsible for the alleged disappearing of several aircraft and ships in that part of the North Atlantic Ocean. The Bermuda Triangle mystery was one story everyone wanted to believe. It was as fictitious as the love triangle of the movie Titanic, yet they both succeeded in intriguing the viewers and making lots of money.

THE RULE OF 3

In fact it is the ‘rule of 3’ which has a lot of significance. According to an old saying about running of businesses, “the first generation starts a business. The second generation runs it. The third generation ruins it!” So, if your business can successfully survive the 3rd generation, chances are it will live, for that means you have planned well. After all, only about 13% of businesses make it successfully past the third generation!

The rule of 3 applies not just to business, but art too. Every budding artist or photographer is told of this rule, which basically says that one must breakdown an image, a composition or a blank canvass into ‘thirds’, both horizontally and vertically to make a grid with 9 parts. The theory states that your focal points of the composition should be placed in the intersection or along the lines of the grid. This makes the photo/composition most balanced & beautiful. For professionals, the ‘rule of thirds’ becomes second nature & all their compositions follow it. It’s said that this rule is derived from the ‘Golden Ratio’. In fact, Mario Livio has written a complete book that shows how the Golden Ratio and “PHI” have influenced our lives. The book is titled “The story of PHI, the world’s most astonishing number”. He says that even Mother Nature follows this rule. It is this that determines how a sunflower’s seeds grow, or determine the path a hawk takes while diving for its prey. It even determines how the spirals in a spiral galaxy are laid out.

Beauty too is defined by this rule of 3, for it provides symmetry to things; and it’s said that symmetry is what makes things beautiful. Be it a face, a body or a building. One reason that the Mona Lisa has remained so irresistible for decades is because it’s composed of around 3 different rectangles. Vinci was an expert in geometry & the Golden Ratio can be seen in all his paintings. Our most famous ancient architectural wonders, from the Taj Mahal to the Pyramids, have all followed this rule of 3 to bring symmetry & hence beauty to the structures.

There is definitely something about 3. Look at your palm, each of your fingers are divided into 3 sections. Your body too follows the Golden Ratio; and it’s God’s most beautiful creation.

Be it business or movies, art or advertising, 3 is the magic number to remember. Two maybe is good company but three is not just a crowd – it could be your mantra to success. If you want to dance your way to success, remember, it takes 3 to tango!

Thursday, May 19, 2011

STAND BY ME

Osama is dead. Obama could not have been happier. Suddenly, his approval ratings have jumped up and he is being viewed as a better leader, for the man stood by his promise. People love a leader who stands by his words, his promises, his commitments.

COMMITMENT OR PASSION?

Passion is short term. Plain passion will not take you far. More than passion, it’s ‘commitment’ that makes things work. Be it a marriage, a team, a company, a country, a society, or a civilisation, it’s an individual’s commitment that makes things work. As Robert Sternberg once said: “Passion is the quickest to develop, and the quickest to fade. Intimacy develops more slowly, and commitment more gradually still.” Passion backed with commitment is the foundation of a great relationship, a great team, a great company.

Back in the 1940s, as American soldiers returned home after the World War II, there was a huge surge in demand for houses. One man’s commitment solved a near-impossible problem. Abraham Levitt perfected the art of “mass-producing houses”, something unheard of until then. Using the assembly line production technique, Levitt built all parts of the house in the factory. These could then be assembled on-site by his team of specialists ( much like the modular furniture of today). As many as 30 houses a day were being massproduced and America was able to solve its housing problem. A lot of people around the world are today wondering if this could be repeated again, for it would help a lot of countries get rid of their slums. However, what everyone is looking for is a committed businessman, someone like Levitt, who will take up the challenge and work with full commitment towards the cause of the poor.

One committed leader, a businessman who believes there is ‘fortune at the bottom of the pyramid’ and is ready to work for the poor, is all that is required and all slums of our country could be removed and our population could get a chance to live with dignity and never again would a “Slumdog Millionaire” be filmed in our country.

Like countries, great companies too have committed leaders at the top. In the book ‘The Toyota Way’, the author states that it was the top leadership’s commitment towards the customers that made the company so great. The one thing people were told to follow was – don’t generate money for yourself, but generate value for customers. Every “great” company follows this philosophy. John Scully, who was once the boss of Steve Jobs at Apple, said in an interview: “Microsoft gets it right the third time. Its philosophy is to get it out there and fix it later.” Let the product be launched, it could be improved later, is the philosophy at Microsoft. While Steve Jobs would never release a product till he was 100% sure and lived up to his commitment to the consumer of being flawless. If it’s not great, it will be thrown away, whether it’s financially viable or not, or if Wall Street likes it or not. By chance if a bad product is launched, Steve Jobs personally sets things right. When his MobileMe service got panned, within half-an-hour, Jobs berated the
group and on the spot named a new executive to run the group. He sent the message out loud & clear – nothing half-baked comes out of Apple, and people who do not get it, no matter how talented they are, have no place here. That’s commitment. That’s why it’s Apple that leads and comes out with these magical products.

Back in 1906, when an enormous earthquake hit San Francisco, the worst affected were the banks and A. P. Giannini’s Bank of Italy was in a bad shape too. While others hid behind closed doors fearing riots, A. P. knew if he did not do something, the fires following the earthquake would finish off the savings of thousands of people. He thought of a plan. He ordered his men to get him two fruit trucks – stacked with fruits and vegetables. His men were confused. How could oranges and bananas save the bank? When the fruit trucks arrived, Giannini quickly dragged out bags of gold & silver from the vaults and stuffed them at the bottom of the truck. Piled high with oranges and bananas no one even glanced at the trucks, as A. P. rode them home down the streets that were teaming with thugs and thieves that time. He hid the money under the fireplace of his house and slept in front of it. He had rescued the lifetime savings of a lot of people. While the other banks were burning, and some too scared to act, A. P. Giannini, opened his bank the next day – that too on a Sunday! Atop two large barrels, he hoisted a wooden plank that read ‘Bank of Italy’. Soon, lines formed as people came for loans. It’s said that his loans gave a kick-start to the recovery process of the state. No marble lobbies, no  fancy building. Pure commitment was all it took to start his bank. So what if the money smelt like orange juice for weeks! By the time other banks reopened, Bank of Italy had doubled its assets, but more than that, it had more than doubled its reputation and goodwill... words we cannot assign to almost any bank of today. Businesses that have a commitment to stay true to their customers, always outshine, for they always look at the long term, which makes it easy for them to make short term sacrifices. It’s truly said that commitment can solve the toughest of problems.

STAND BY YOUR PRINCIPLES

When Jack Welch was heading GE, he realised the value of people, rather, of the “right” type of people. There was an interesting group of workers he came across at GE. These were those who delivered all their commitments, all the time, but did not share the company values. Most CEOs, under pressure to meet targets, would not even bother about values at this stage. Anyone who fulfilled commitments was great. Not so for Welch. Values were of supreme importance. These type of employees had no place in GE. Along with commitment, comes the strength of character. Among the 9Cs that Lee Iacocca listed in his book ‘Where have all the leaders gone?’, the one quality he stressed on was “character”.

Tiger Woods was the perfect brand ambassador, only till the time he could boast of an untarnished reputation. He was a man committed to his game, but that was not enough for the people. A strong sense of commitment comes from a strong character. Be it companies or countries, the leaders of both need both the qualities more than even talent to succeed.

“Faith” is what makes the world go round. In the business world, as in the real world, “trust” is the key factor. Stay true to yourself and your value systems, and stand by them. Donald Trump says in his book ‘How to get rich’: “Be stubborn, be determined.” Don’t get influenced or fluctuate with others ideas. Temptations are aplenty, the one who can steer clear of them rules.

On April 26, 2011 Sony of Japan revealed that names, passwords, and possibly credit card details of 77 million accounts were stolen by hackers who gained access to its Play Station online- gaming system in 60 countries. A lot of users were shocked. Not so much by the hacking, but the way Sony handled it. It took Sony a week to accept that accounts were hacked; and then it released a statement that services would be up in a week, but did not live up to it either. The name Sony symbolises ‘trust’ for millions. After all, when those 77 million entered their details on the Sony website, they did so because, well – it’s a Sony and they could trust it blindly! A lot of them are now questioning Sony’s commitment and if it can be trusted.

In today’s world, the rarest commodity is “trust”. Brands become great because of the great trust of the people. The one who enjoys trust of his people rules. A great company is one that is headed by a trustworthy and committed leader. A great country is one that has a leader committed to his people. A great brand is one that is committed to its consumers, for if you are committed, your followers, your consumers will reciprocate. Decades ago, John Lennon sang these words, and they hold true even for the business world:

“If the sky that we look upon,
Should tumble & fall,
And the mountains should crumble to the sea,
I won’t cry, I won’t cry, No I won’t shed a tear,
Just as long as you stand, stand by me”.
Stand up for a cause, stand up for your beliefs, stand up for
your country, and the world will stand by you!

Thursday, April 21, 2011

THE “LIKE” BUTTON

Many of us turned into “revolutionaries” this April. It required no protest marches, no dharnas, no violence, not even fasting. A mere click of the ‘Like’ button on the “India Against Corruption” Facebook page, a change of our profile picture into that of Anna Hazare’s, an updation of our “Status” message into “I support Anna” made each feel a part of the great movement. For many, just giving a missed call on 022-61550789 was enough to express their solidarity towards the movement. Anna Hazare fought, not just by fasting but also by ‘Facebooking’. It was the Internet & other communication tools that increased the voice of his anti-corruption movement. So powerful was this tool that within two days the members of the ‘India against corruption’ page increased from 5 lakhs to 12 lakhs. Some 7 lakh people showed their support by giving a missed call on a number texted to them. The revolution was “virtually there” for everyone to join in. It did not require physical presence; as long as you thought alike you could be a part of this ever increasing group, whenever you felt like, and could voice your opinions too on this “virtual” meeting place!

TWITTER - THE NEXT “NOBEL PEACE PRIZE” WINNER?

The last few days have witnessed a lot of revolutions around the world, many of which started “virtually” on the Internet. Today, the role of the social media has become more than just a place to catch up with old friends. Rather, it’s now a place where your voice can be heard – and if what you speak is sense, then there is no limit to the number of followers you can gather. Social media is now bringing about social change too.

Thousands of protesters gathered on the streets of Moldova in 2009 to protest against the communist government. Tunisia too overthrew its ruler in 29 days and many called it the “Twitter Revolution”. It was Twitter that gave protestors the courage to rock the Iranian government, and stand up for freedom and democracy. So overwhelmed was Mark Pfeifle, a former national security adviser, that he called for Twitter to be nominated for the Nobel Peace Prize! Twitter was helping in bringing like-minded people together – and in the case of India, also in staging a non-violent protest... just the way Gandhi did decades ago.
Like Button
The invention of the printing press gave momentum to the French Revolution . For the first time, pamphlets could be printed in bulk and thoughts and ideas could be spread faster. The invention of Twitter and Facebook has given momentum to all recent revolutions. They have provided a voice that is impossible to censor and that can spread faster than lightening! The new age revolutions have become so big largely because of this digital revolution.

While it’s true that Twitter and Facebook are very important tools to spread information, the fact is, real change requires something more. It requires a true leader, who inspires a feeling of camaraderie, of brotherhood. It’s not just a voice, but a voice filled with passion. A true revolution is not about just the number of virtual “friends” who support you, but about those real people who are ready to die for you; it’s not about the number of “media tools” one has, but about the real ‘cause’ you stand for. As Malcolm Gladwell said, “Social media alone cannot provide what social change has always required.” Yes, it gives a voice to the powerless, but a voice needs a face, the face of a leader, who has the power to attract ‘real’ followers. The ‘Like’ button is a strong indicator of your potential, but for a revolution to reach its full potential, the ‘virtual’ voice needs to be backed by a ‘real’ one too. A great leader of tomorrow will be one who will have the maximum ‘Likes’ and “followers”, both in the virtual and the real world. Both grounds will be equally important .That will be the way to change tomorrow’s world.

VIRTUALLY POWERFUL

The ‘virtual world’ has a lot of potential and one person who exploited it best is Julian Assange. It’s not just the nuclear radiation leaks that have the power to destroy the world – rather more potent has been Wikileaks for that has caused more destruction; and that too in the right places. Assange found ways of channeling information from the ‘virtual’ spaces into the hands of the common man and woke him up from his slumber. When Assange started publishing the secret cables in Al-Akhbar, the Lebanese newspaper, did the common man realize how his leaders were cheating him. The revolution started from the average man and that’s how people could finally overthrow the government.

The ‘Virtual World’ has a lot of potential and a great leader can use it intelligently to change the world. An intelligent marketer can use it to get the cash registers jingling and change the very rules of business!

FACEBOOK SHOPS

Last year, two students of Wharton launched a site named ‘Kembrel’, which was a private shopping community for just college students. The site partnered with a few well-known lifestyle brands to offer deep discounts on goods for a limited window of time. The catch was, this was a private store which students could access entirely through Facebook – a place they anyway spent a lot of time on!

Facebook commerce is the new buzzword. Retailers are exploring Facebook as a revenue channel like never before. Bulgari, the high end fashion label, has developed jewellery lines, leather goods, and perfumes which are priced right for its Facebook audience, who may hesitate to enter its store in Fifth Avenue, New York; these very consumers can access the brand in the comfort of their Facebook world. This year, FCUK [French Connection] and Dove also opened shops on Facebook, enabling their followers to buy their products directly from the page. P&G had already tasted success when it launched its Max-Factor brand on Facebook last year. Again, last year, Tesco Clothing generated £2 mn in sales as a result of their UK Facebook page. Using vouchers, it tracked its activity on Facebook and found out that its campaign “Friday Frenzy” resulted in more sales in two hours, than it would usually get in a week.

Facebook is inarguably becoming a lucrative place for marketers. Oscar de la Renta launched his first fragrance in 10 years on Facebook. All the people who ‘Liked’ the brand’s page got a free sample. Indian designer Arjun Khanna saw his Facebook page grow so much in popularity that he opened his store in Goa. 3M came up with an innovative product to rejuvenate its Scotch Tape brand. It launched a Scotch Shoe, a tape dispenser that looked like a lady’s shoe. The launch happened only through Facebook, for that was the place where its consumers were.

According to Booz & Company, the value of goods sold through social media may rise six-fold by 2015 to reach $30 billion. In the future, many product sales/launches would happen on Facebook. It’s time for companies to seriously start working on getting more ‘Likes’ and simultaneously thinking of ways of converting the ‘Likes’ on their Facebook fan page into ‘Buys’.

The future seems to be all about ‘Likes’. The power will lie in the hands of the people who will use the ‘Like’ button to give their vote. The one with maximum ‘Likes’, be it an individual or a brand, is the one who will wield the maximum power; for that’s going to be the way to judge the potential of an idea or a brand.

As future leaders, let’s start thinking of ways of making the most of the ‘Like’ button.

Thursday, April 7, 2011

BLEED BLUE!

It was an unforgettable moment of pride for all. That night of April 2, 2011 every Indian forgot his caste, creed, worries, tensions, apprehensions and rejoiced with his fellow countrymen as India won the ICC Cricket World Cup. It was a long wait of 28 years and victory never earlier had tasted so sweet. A big achievement for India and most importantly for its most amazing captain M. S. Dhoni. Fearless, confident, cool and unflappable. He drove in unlimited self-confidence into each player, and together the team conquered the world.

The man showed the world he doesn’t play by the rules – and India loved him for that. A captain like Dhoni and a tournament like the World Cup is a combination that doesn’t come too often and it made every marketer sit up and take action. With the whole nation glued to their TV sets, there was nothing more exciting an advertiser could have asked for. Along with the nation, every brand too was eating, sleeping, breathing and singing cricket. Every brand had jumped on to the cricket bandwagon.
With cricket and only cricket on everybody’s mind, most brands changed their advertising strategy to match the mood of the audience. Those who could afford to, roped in the cricketers to endorse their brands, while the numerous others changed their advertising themes, punchlines, promotional offers to match the cricket euphoria. As this was the best way to engage with the audience, Krishidhan, India’s 5th largest seeds company changed its tagline to “Beejon Ka Tendulkar”. DSP BlackRock Mutual Fund asked people to “Prepare your investment kit”. Style Spa introduced its “Hattrick offer”. Dr. Batra’s introduced its “Super Six Offer”. LIC doled out a slew of catchy slogans, each one reflecting the spirit of the game. From “Live life on the front foot” to “Great partnerships are built on trust”, each one showed how life & cricket were not very different from each other. Relating your brand to cricket was the best way to get noticed this time. Those who did have the means – like Revital, Oakley, etc – got a cricketer to endorse their brands. However, for some, in spite of spending so much and changing their advertising themes to cricket, the magic eluded them. Very few could reflect the passion for the game in a way that would get the viewers excited and involved. Research has shown that out of the hundreds who infused “cricket” into their marketing plans, only two brands stood out head over heels above others – Nike and Pepsi.

Much like its “Just do it” slogan, which caught the imagination of youngsters across the world, Nike’s “Bleed Blue” was on the lips of every Indian as he confessed his love for the game. Nike put into words what every Indian felt when its cricket team went to play against the world. Winning the cup and defeating the world made every one weep and bleed for the men in blue.

Pepsi and its campaigns have always been young and appealed to the youth. However, its campaign around the World Cup created by the agency Taproot India, brought a smile to everyone’s lips. Humorous, irreverent, and interesting, the campaign brought out the spirit of the viewers. When it comes to cricket, every Indian thinks he’s the expert and that one could easily teach the cricketers a thing or two to improve their game. For every lost match, we have an explanation & a solution, which, if the team had followed, would have ensured they won the match. The Pepsi ad portrayed this so beautifully with everybody teaching the cricketers how to master unique batting and bowling tricks. It brought a fresh twist to the game and soon the “helicopter shot”, “the doosra”, and the “upar cut” become the new cricket lingo. They were funny and totally different from the cricket rule book. Pepsi did change the game.

NO IDEA – GET AN IDEA!

That’s the problem with most. We have no idea; or rather no new ideas. Be it in life, in schools, in politics, or even marketing, what’s lacking is original thinking. The problem starts at the grassroots. In schools, IQ scores are rising steadily because children are busy learning and increasing their IQ, but they have no time for idea generation. Whereas it’s the CQ – creativity quotient – that matters in life. A recent IBM poll of 1,500 CEOs showed that the No.1 leadership trait was “creativity”. There seems to be a creativity crisis everywhere. Creativity is not confined to art; it’s the ability to think beyond the obvious. Creativity could help leaders in solving world problems, from identifying ways to educating masses, providing health care to finding a peaceful solution for Libya, Afghanistan etc. A creative leader can change the world by thinking & doing things differently. Creative marketers can find ways of taking their messages straight to the hearts & minds of the consumers. They can design campaigns that don’t just look creative, but have a creative, powerful & meaningful message too. The sad part is that not many are doing it. Look at the advertisements of cellular service providers. Everybody is saying they are the best and we should switch to their network. Apart from Vodafone’s Zoozoos, not many names shine out distinctly. While every insurance provider was talking emotions, the adorable Bharti AXA Life Insurance ad shone out as the podgy man at the doctor’s clinic refused to accept that he had a critical lung disease – but a kidney failure was fine for his policy covered it! Somebody thought creatively and drove the point home. Tongue-in-cheek, it poked at the other insurance providers without being critical or preachy. While every advertisement of suitings looks the same with a dapper male model and an attractive girl hanging on to his arm, it was Raymond that shone out with its series of “The Complete Man”. Somebody thought there was more to a personality than just good looks; and as expected, the message was loved & remembered and Raymond stood out above the clutter.

When the stakes are so high and the rewards so lucrative, what every marketer should have stressed on was creativity. Right from the dream semi-final between India & Pakistan to the finals, this World Cup provided umpteen opportunities for creative leaders to shine out. With such unheard of advertising rates (Rs.17-18 lakhs for a ten second spot during the Indo-Pak match) it was absolutely essential for all to think different. M. S. Dhoni kept his words, thought differently and planned the match most creatively – which got us the cup finally, but not many advertisers lived up to the promise, save some like Pepsi. In fact, the Pepsi ads have worked so well that when Dhoni hit the last six, even the commentator remarked that “that was the helicopter shot”, a term that till now had never been a part of the cricket vocabulary. That’s creativity. Exotic locations, attractive models, top quality special effects can never make an advertisement successful. It works only when everything comes together with a great idea. So get new ideas.

ANOTHER “BLUE” EVENT!

Events like the World Cup, the Super Bowl, et al, are huge platforms that can provide an instant reach. They are dream events for advertisers. The men in blue always provide a huge opportunity for advertisers, at least in India. However, this month-end, another “blue” event caught the imagination of the world. It’s the Royal Wedding of the blue blooded Prince William with Kate. A wedding like this comes once in a lifetime almost, and according to some economists, it might even save the British economy. It’s expected to generate £620 million just from tourism, add to that the sale of memorabilia and other merchandise.

It’s a big event and marketers are already working overtime! While Walmart is selling tea mugs with the Royals on them, Hyatt Regency has introduced a “William & Kate. The Love Story” package; a brewery is even producing a special “Kiss Me Kate” beer... and the list goes on.

It’s time again to put on our creative hats and make the most of this “blue blooded” event, for the one who thinks differently is the one who will profit the most. And David Cameroon, you can save your economy too! In whatever you do, be creative, be original, and just like our super captain Dhoni, think from your heart and bleed blue with passion.