Tuesday 21 June 2011

Maa v/s MNC- A different perspective.


I remember, last night, when I was asked by my mom, what I would be having for dinner, my answer was the same as it was three days back… Mom, I am going to Dominoes & wont be eating home…

Second incident which I recollect, the other day, I had been to a friends place. The first thing he asked was, Pepsi piyega ?

Thirdly, I overheard, a fortnight ago, while returning back in a local train, “Arey yaar, I wont be buying ‘my new collection’ from Ex Casuals (a local store).. Soon, there would be a monsoon sale in the mall & the prices would be rock bottom… Might be cheaper than these localites who dump our wardrobes with Thailand made Stuff. So I would rather wait & buy a branded pair of jeans from a Jack & Jones, and I don’t even mind paying that ‘extra’ bit for it. ”

I am sure, you would have guessed what I am trying to say by above three examples.
We have become so much dependent on a few MNCs, that we are moving away from the MAA Style Life.
Coming back to the examples,
When my mom asked, my tone was more obvious than informative.
The same goes with the friend whom I visited the other day. He substituted Pepsi, for all welcome drinks.
Also the third example says, how are we making a conscious effort of improving our lifestyle.
Our craving for various brands has also increased & many brands are replacing the normal day to day life products, without we realizing it! I remember few years back, Achaar was made only at home & the ladies of the home had the time of the year, putting efforts for a few days over the food item which would occupy half square inch of Dish Space throughout the year! Now, probably, household’s like only BEDEKAR’s Maa ka Achaar !
The above set of examples prove that, various Indian & International brands are taking over, over the Maa Style Life in more than one way !
Also they are all the more successful, because we have a craving for it, we feel like showing off a jack & Jones label on the Jeans; also they know that we don’t mind paying the ‘extra bit’ for that SHOW OFF.
Well, it is rightly said that the Indian economy is no longer shaped in a pyramid style. It is a Diamond Shaped model, wherein the middle class occupies maximum space. The number of people living in ‘middle class’ (read: cattle class- as tweeted by a well known Minister few months back) has gone up. This is a clear indication of our adoption of a better lifestyle, in a conscious way.
Also, one more reason for our increase in spent for such recurring expenditure is, the value of Capital Goods in increased daily. A common man cannot afford to buy a house for himself. He would rather wait for the bubble to burst & for the prices to fall back to its normal position. Most Indians have the habit of saving. Hence after the savings have been made, there exists an amount still in hand, & bingo: this, ‘in hand saving after saving ’ is reflected in the annual reports of these multinationals & various Indian Brands as SALES in a short period of time !
Hence, I feel, this is a vicious cycle, wherein the company wants to sell, the consumer wants to buy, the consumer wants to improve his lifestyle, the consumer has that extra buck & the consumer is in no position to spend on capital goods.
Hence, I would like to conclude by saying,
While the international marketer metaphorically listens to Maa- the wise, old Granny; Granny’s children & others in the family are already dancing to the tunes of the International Marketers by hogging on a double burst pizza, sipping a cola & wearing a J & J !
Hence, I feel, both complement each other.

Wednesday 2 March 2011

Telecom Matters or not ???

Every Single Second counts (Well, Quite Literally in this sector). But I have never understood the reason & hence always there is this big question.... "Is it the only thing that matters ?"

The idea of this blog elicited when I visited one Vodafone Store. There were more than 15 people waiting patiently for more than 45 minutes for their turn . I did some calculations to know whether the time they spent in a "Red Painted" Store with the "Zoozoos" was actually worth it or not !

Here is a brief glimpse of the calculation.

  • An average Indian uses his cell phone for 10 minutes daily. 
  • Assuming the best & the most commonly available scheme these days, 1ps/ Sec. 
  • The cost per day on an average come to Rs.6-8/-. 
  • Hence Monthly average bill being Rs.180-240/-. 
  • So an average spent on talk-time for a period of 6-8 months is Rs.1260-1680/-. 
  • I have considered 6-8 months because, that is the average time an Indian Consumer doesnt replace his cell phone. 
  • Eventually we incur a notional loss of atleast Rs.3000-4000 on a normal handset of Rs.10000/- while on a resale spree. 

If we calculate the per day expense of both Talktime & Handset, we are paying almost triple of what we think we are actually paying.

So, Think again before buying the cheapest call rate service provider because what matters all the more is which handset you are using & how often you replace it !!!!


Wednesday 23 February 2011

It was my 20th visit (well, almost) to Gujarat last weekend. I was more shocked than surprised with various experiences I had. So decided to "e-pen" it down.

Well, my trip included a visit to various villages. Reached the first pit stop in a state transport bus around 5 am. I was surprised to see various multinational companies grabbing my eye balls with huge hoardings in "Local Languages". (Well ok, it must be pretty normal to go CUSTOMIZED for them, but let me confess, I was surprised & found it rather funny to read LG, Tata Photon, Airtel, CCD, Raymond, etc... in Gujarati.)

What made me put on my thinking caps was, the obsession rural people have with "BOMBAY" (not at the cost of offending any Political Party back in the Financial Hub of the nation) & various other so called "Modern English" words. An example to justify would be, "Bombay Bollywood Style Saloon " ; "All-in-one Super Store".... Whats most ironical was that every single letter of the above mentioned "Bombay style names" was in Gujarati. Obviously, I would definitely think twice before entering the saloon of a person wanting to cash on " the Bombay chauvinism" of the poor villagers.

Also one fact of matter was the penetration of various FMCG products into the markets & more importantly the mindsets of people was very high.The sachet technique works very well in the roots, it seems.
One company which made me bow down with respect was, PARLE. It had an excellent penetration compared to various others. The retailers & distributors were more than happy stocking up the products.I could relate the smiles on the faces of people behind the counter with the margins being given by the company.

Here comes the Shock part of the blog. Various cheap & duplicate brands tried & replicate the logo, design, packaging etc & used Mr. Kotler's "PUSH Strategy " to penetrate. Eg: Patel Packaged Drinking Water: Mr. Patel ensured the packaging was strikingly similar to Aquafina  & made sure the store did not stock up the original brand. Well, great job done by Mr.Gujju Entrepreneur, but hope Mr. Patel doesnt have to "Liquidate" his company soon.Pun Intended.


Also one thing which I feel is firmly associated with Rural as well as few parts of urban India are "Superstitions & Traditional Practices." But, they feel that is the way of living. I was lucky enough to meet an 110 Year Old person (Yea, You read it right: 110 Years Complete 111 Running, even I was shocked.)
He was totally fit & fine, has lived his life all alone, goes for a walk daily, & the most cutest part: makes TEA for people who visit him. (Yea, he makes tea himself & serves) He, obviously has not even in his wildest dreams must have thought of Double Burst or a Foot Long Subway !!!!
All he craves for is "Shudh Ghee ka khana." How could I forget. he had 2 Feet long beard & a dozen huge necklaces, which supposedly gave him all the strength. He has never taken a medicine in his life & is confident that he will never need one. If he falls ill, he might add a couple to the earlier dozen.

To sum it all,
I couldnt figure out,

  • Are we really changing?
  • Are the roots (which we proudly boast off, at times) moving towards the "BOMBAY" style culture ?
  • Will they really change, given the fact that the superstitions around them may not allow them to. !!!
  • Will the unaccounted profits of the likes of Mr. Patel ever affect us, as a nation?
  • Will the rural India get the taste of Real BOMBAY... err MUMBAI ???


More than half of India is still craving for a better lifestyle !!! Hopefully we help them get closer to the dreamed reality !!!

Soon, hopefully, we might see a Farmer with a facebook profile page, promoting his produce of the year. (We never know !!! )


-Shrenik Gandhi