Has customer service improved?

A long-term solution to better customer service might, strangely, start with you and me!

A long-term solution to better customer service might, strangely, start with you and me!

At the turn of the century, when organised retail was just making its presence felt in the country, there was one question on everyone’s lips: “When will customer service in the country improve?” Before I even attempt to answer the question, I must give you the comment made by the MD of Titan Industries Ltd (who spoke at a seminar organised by our company on our tenth anniversary). He asked: “Do you realise what this service person is being paid? He gets ₹8,000 a month!”

That’s the reality! And the people who are commenting on these services are earning at least 10-20 times this amount! They expect the person at the outlet to be prettier than the Indigo air hostess and smarter than the HSBC receptionist. I am exaggerating to make a point but this is a real problem affecting retail and, if I may add, customer service. 

When did things change?

I am observing certain changes in the customer service environment and, here, I speak of my experiences as a consumer and not so much as a consultant. I think the greatest impact on customer service reaching out to thousands of Indians is through the understated cab driver. I experienced this a few years ago when Bengaluru airport decided to move 50 km from my house and the cheapest flights, which poor consultants like me used to take, where either at unearthly times in the morning or those that landed after the pubs closed.

A friend, whom I don’t wish to embarrass by naming, an acknowledged service expert, used to give the example of a driver who used the mobile to great advantage. He would land at your house at 4.55 a.m. when the pickup time was 5 am and text you “Sir, I am at your house”. The driving would be safe and conversation depended on you. He would not speak on the phone and invariably wish you by saying, “Have a safe flight”.

The pick-up was even better. He would text you before your flight took off from wherever, thereby checking its time, and meet you at the appointed place. The standards kept rising as he realised my friend’s son had difficulty in getting up, so he would actually give him a “wake-up call” half an hour before the pickup time! 

When I saw the Uber film posted on YouTube that has nice, polite drivers in the city I grew up in, I was reminded of that driver and the new breed of drivers who are improving the overall quality of customer service in a manner which no organised retail can touch. 

Why has this change happened?

Let’s compare the driver of today’s cab with the retail assistant of yesteryear. Is he more qualified? Not necessarily. Is he trained better? Need not be, the way drivers are being on-boarded by aggregators. Then, what is the difference? My view, not borne out of great learning or theory but based on my own observation, is simple. Today’s driver is often the owner of the vehicle and he realises that any improvement, courtesy, standards he is setting will directly impact his livelihood, his next meal even.

I think they are also observing that the world around them is comfortable with GPS technology so that they can even work in strange cities without worrying about the city and its roads. The other reason that causes friction is the absence of change owed by the driver after the ride, especially when one is rushing to catch a flight. Today, thanks to the mobile wallets that companies like Uber are using, it makes the system even easier for a customer like me, who has difficulty catching early morning flights!

 

A word about the consumer

Historically, the onus for customer service has always been on the service provider and never on the customer. Yet, the reality is that many of us are ‘grumpy old men’ when it comes to receiving customer service. We have different standards for ourselves and for the service provider.

While we get angry when the driver is late, we often coolly make the driver wait and then ask him to step on the gas. We are insufferably rude, thinking we are superior human beings. This is probably why systems like Uber having the driver rate the customer are important. And this leads me to the most important question of this whole piece.

“How do you rate as a customer”? The answer to this may not be an easy one but a long-term solution to better customer service might, strangely, start with you and me!

Brand Extnesion: A Rose By Any Other Name?

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.

Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”

For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.

So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.

This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.

Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”

So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.
Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”
For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.
So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.
This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.
Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”
So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?
- See more at: http://paulwriter.com/brand-extension-a-rose-by-any-other-name/#sthash.FYeETpwN.dpuf

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.
Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”
For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.
So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.
This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.
Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”
So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?
- See more at: http://paulwriter.com/brand-extension-a-rose-by-any-other-name/#sthash.oWJRyoA4.dpuf

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.
Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”
For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.
So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.
This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.
Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”
So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?
- See more at: http://paulwriter.com/brand-extension-a-rose-by-any-other-name/#sthash.oWJRyoA4.dpuf

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.
Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”
For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.
So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.
This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.
Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”
So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?
- See more at: http://paulwriter.com/brand-extension-a-rose-by-any-other-name/#sthash.oWJRyoA4.dpuf

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.
Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”
For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.
So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.
This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.
Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”
So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?
- See more at: http://paulwriter.com/brand-extension-a-rose-by-any-other-name/#sthash.oWJRyoA4.dpuf

The latest brand extension comes from Chumbak which is known for its quirky home & décor and accessories. It extended its product portfolio to include clothes this month. Louis Philippe, a brand positioned in the premium segment for men’s apparel launched its timepieces ‘Louis Philippe TIME’.
Commenting at the launch of its timepieces, Sooraj Bhat, COO, Louis Philippe & Allen Solly, said, “In recent years, diversification has become an important mantra for retail brands. With factors such as the changing shopping preferences of consumers, disposable income and enhanced standard of living driving sales, keeping pace with the requirements of the industry has become essential. We are looking at a significant contribution of this category in the total revenue generated by House of Louis Philippe in the next five years.”
For Vivek Prabhakar, Co-Founder and Chumbak too getting into apparels category is a strategic decision considering the opportunity that the category offers. Home products account for 60% of Chumbak’s revenue, while accessories account for 40 per cent of the venture’s revenue. Moving forward, these dynamics will change for Chumbak with home and accessories accounting for 65 per cent of the business revenue followed up by apparel revenues stocking up to 35 per cent.
So what are a few factors to keep in mind when going for brand extension? R Sridhar, Founder and CEO of Integrated brand-comm is of the opinion that the extension only makes sense if the brand has a strong resonance and presence and most importantly a good connotation in the category. Take for example, Britannia- since it has a strong presence in biscuits it can leverage this to extend to any product in the bakery segment. Interestingly, Sridhar also points out that when we talk brand extension one generally seen it in terms of product diversification but a good way to approach this would be on the brand’s ethos or brand values. Like take the example of Kingfisher (I know not a good example in the present circumstances) which is built on the premise of being a `King of Good Times’ now this can be extended to various products like airline, TV Channel and even IPL team as the philosophy helps in tapping a wider range of categories.
This probably explains the brand extension of Chumbak into apparels with its Collection One. They are leveraging the brand quirkiness that it is known for into clothes category which will hopefully give them a bigger market share.
Jessie Paul, CEO, Paul Writer says, “Brand extensions are a great way to monetize your brand value by spreading it across a large range of goods, and hopefully command a premium for it. It’s much cheaper than launching a new brand.” She adds that while the Louis Philippe extension is not a big leap as it is in the same space – fashion – as the parent brand, the Chumbak expansion is a jump as it is trying to cross from home decor to fashion. Paul cites Tommy Hilfiger and Armani as brands that have successfully straddled the fashion and home decor spaces using their distinctive design style as a bridge. “Chumbak has successfully transitioned from the souvenir market to home decor. They now want to use their design ethos to cross over to fashion. But fashion is a fickle space and though I swear by Bombay Dyeing towels, for example, I wouldn’t wear a Bombay Dyeing frock. At present I can easily see Chumbak occupying the quirky T-shirt spot, but they’ll have to further build out their design creds to be a fashion contender.”
So would you wear a Bata dress? Use a Hapric toothpaste? What do you think? Will these brand extensions sink or fly?
- See more at: http://paulwriter.com/brand-extension-a-rose-by-any-other-name/#sthash.oWJRyoA4.dpuf

Hero has not forgotten

So when you get to work on a brand in the not too distant future, ask yourself the question: What does this brand stand for? 

A couple of days ago, I saw an ad that took me back in time. Some thirty-odd years ago. It was an ad for Hero Splendour with the magical, yet, old headline: “Fill it, shut it, forget it”, where the manufacturer claimed superior fuel economy, a claim they have been making since 1985. Incidentally, the brand claimed 102.5 kms per litre which has been refuted by its erstwhile partner Honda Motors.

But how did this platform of ‘fuel economy’ begin? 

Let me take you back in time, to the year 1985, when I was a young account executive handling the IndSuzuki motorcycle account. (The brand later modified itself to become TVS Suzuki and even later to TVS Motor company). IndSuzuki had two principal competitors at that time – the Hero Honda CD100 and the Yamaha RX100. These were the new generation motor cycles that the young, middle-class Indian was newly experiencing after years of living in an economy hurt by scarcity.

The Hero Honda CD100 was a path breaking ad at that time. 

It claimed 80-kms-per litre and took the market by storm. Though the TVS Suzuki management felt that four stroke engines would not make an impact on the market, the brand and the technology stormed the market.

 

Obsessed with fuel economy

 

It is this property of fuel economy that the brand has latched on to date.

India and Indians have always been obsessed with fuel economy. 

We believe we are a prudent race and advertisers and advertising agencies have been quick to capitalise on this. I am sure you all remember the ads done by Maruti Suzuki in the passenger car segment of visitors to a luxury yacht and to the NASA centre where a typical Indian consumer asks “Kitna Deti Hai?”. (Watch ad 2)

 

Own a word in the consumer’s mind

I know that management students like you, don’t have time to read books. I don’t blame you; for that as so much information is available online, a luxury that was unheard of when I was a management student.

Our only recourse to knowledge then was the library, though, in your case, despite the availability of eBooks, I must insist that you read this one book on marketing called Positioning, the battle for the consumer’s mind by Al Ries and Jack Trout.

The authors strongly advocate the owning of one word in the consumer’s mind that they associate with your brand, in their chapter titled: the law of the word is the car brand Volvo. Volvo strongly owns the word “safety” and this commercial highlights this feature.

 

Capturing the consumers psyche

Mind you, it is not like other cars are less safe. All cars have features which make them safe for driving. But Volvo through a combination of consistent communication has taken the safety slot in the consumer’s mind, much the same way as Maruti Suzuki and Hero Honda have taken the fuel economy slot in the Indian consumer’s mind.

Is it easy to do this? It is certainly is not easy to do this, otherwise more brands would be doing it. Even if you do it for a short period of time, the environment and competition could make you lose it. Volkswagen used to own the ‘reliability’ platform' in the consumer’s minds and yet in the recent past it seems to have lost that position of eminence it had in the consumer’s mind.

So how do you compare this? Remember, that positioning is a competitive statement. It is your way of standing out from the other competitors in the same field. Carefully evaluate what the competition is saying and arrive at a position that is unique, distinctive and relevant to the consumer. Remember too that it has to be relevant to the consumer. Research can help you here. Remember too that the sharply positioned brands cannot be everything to everybody.

Positioning means sacrifice and when you take a stand you may actually put off certain sections of the market. Look at what this brand is doing - it is clearly targeting women and this may upset men. But it is a strategic choice.

And, finally, ask yourself the question: Can I realistically aspire for the position or is it already taken in the consumer’s mind. For years I used to argue with BPL that the technology platform would not work for it as when you asked the consumer which company stood for technology in TVs in the nineties they all said Sony.

So all the money BPL ended up spending on claiming that technology was their competitive edge was all in vain.
Sadly, the realisation was a bit late in the day.

So when you get to work on a brand in the not too distant future, ask yourself the question: What does this brand stand for? If not what should it stand for?

And most importantly think long term.

Is your advertising spend being wasted?

Advertising is glamorous business, but it can be wasted quite easily. Here are a few examples

What is your daily newspaper full of? I’m sure you will say ‘scandals, rape and crime’. But let’s leave out these titbits for now, and focus on the ads. While there may be hundreds of ads of various sizes and shapes, conveying a variety of messages and offers, two categories — e-commerce portals and real estate — have dominated the spending with full-pages, pull-outs, jackets, special positions, front-page soluses and what have you. Why are these two categories dominating the spending?

One suspects that e-commerce companies are flush with funds and keen on expanding their market share, while real estate developers are probably a bit desperate, considering they are sitting on inventory and home-buyers don’t seem to share their sense of urgency in grabbing the keys.

How effective are these ads? Do they actually work or are companies going overboard with their spending? The best judges of the effectiveness of an advertisement are the clients, who release the ads, and agencies that create them. Success, or otherwise, depends on the objectives set — awareness levels, footfalls, enquiries and maybe even sales. And yet, even without the information required to form a judgement, one could make a call based on one’s intuition and experience as a consultant and, more important, as a consumer. Let me start with the e-commerce example, even if it is a bit dated.

 

Flipkart’s Big Billion Day struggles

Last year, around this time, Flipkart created a tremor in the market by announcing the Big Billion sale with huge ads, TV commercials, teasers, radio spots, hoardings and online ads. The build-up was phenomenal and the response, overwhelming from the length and breadth of India. As a consequence, in a couple of hours, the server crashed, igniting much hostility and anger on social media, as disgruntled and unhappy customers went to town with their complaints. The promoters then apologised to the public at large.

 

While the apology might have retrieved the retailer from a sticky situation, it brings us to the original premise: was the adspend wasted? Could the same results have been achieved with less spending?

The advertiser must, no doubt, have asked himself/herself this after the event. Having said that, however, I must mention that I have a lot of admiration for Flipkart as a company, for having expanded the market for online goods across the country. Today, online buying is not only a phenomenon in Mumbai, Delhi and Bangalore, but also in smaller towns. Flipkart must take the credit for that.

Even the fiasco has to be understood from this perspective. I am told that Flipkart had planned and rehearsed for an excess of demand of a few hundred times, but who could expect an excess of several thousand times? It is difficult to plan for events such as these, but better planning can lead to better results, as I will attempt to demonstrate.

 

Why is Sunday an off day?

Two Sundays ago, I was sitting at home when a two page ad of Grofers hit my eye. How could it not? It was so big and they promised to deliver before the ice cream melts. I ordered nine items — nothing exotic, but simple stuff like papaya and pomegranate. As luck would have it, they only had five of the nine items I had ordered. What is the point of all that advertising if the back office is not in place? Wasn’t that advertising wasted, even if only partially?

This is the point I am making, which leads me to the second category I spoke about in the beginning of this piece — real estate. Every Sunday, they release huge ads, more in hope than anything else, I guess. Be that as it may, I see the ad at 6.30 am and call the number which is boldly listed on the ad — invariably there is no one to answer the phone at 6.30 am. At that time, this property is on top of my mind and if the call had been answered, chances are I would have even seen the apartment by 10 am. But it did not happen, and the company called me at 3 pm. Tell me, who is awake at 3 pm on a Sunday afternoon?

 

 

So that’s the story of different ads at different points in time, for different products and services with varying degrees of success. The question I ask is simple — have you got your back office and support services ready before you release those big ads? Advertising is glamorous - sexy even - but it can be wasted. Don’t let that happen to your advertising.

Will Pepsi's reported desire to pull out of IPL finally knock some sense into BCCI?

If you think that FIFA banning its president Sepp Blatter for 90 days the week after four its largest sponsors called for him to step down is a coincidence, then there’s a bridge I’d like to sell you.

As with most areas of life, money talks the loudest. Which is why the Indian Express report that Pepsi wants to pull out as lead sponsor for the IPL could force the BCCI to at least tidy up the way it runs the league, even if it doesn't lead to full scale reforms (though one hopes the Lodha Committee will do that).

The reasoning is simple: The BCCI owes its dominant position in world cricket to the IPL. Over the first eight years of its life, the IPL’s coffers have been immunue to a growing number of scandals – from match-fixing to under the table payments to team suspensions and eliminations to court cases.

When one sponsor stepped away, another was waiting in the wings to step in. Pepsi’s deal with the IPL, signed in 2013, was touted as the evidence of the league’s teflon exterior at the time. How could the IPL’s reputation be damaged when a company with Pepsi’s reputation and scale wants to be part of it?

In some years, the board makes more money from the league then it does from international cricket. That’s why it could threaten to walk away from the ICC and world cricket - because it knows it has the resources to survive. Other international boards are not so lucky. Without international cricket, they would wither and die.

But now that Pepsi has reportedly sent a notice to the BCCI saying it wants to withdraw its sponsorship, worth Rs 396 crore, because of issues that brought the game into “disrepute”, there is nowhere for the board to hide.

If that spigot were to start drying up, the BCCI’s monetary position would be weakened and it would make it harder for the board to throw its weight around, especially if other sponsors follow Pepsi’s lead.

That prospect, at least in theory, should hopefully motivate the BCCI to start running the league in a less arbitrary and capricious way. For one thing, it needs to tackle the issue of Sundar Raman, the IPL COO, who is under investigation by the Supreme Court. Even a simple suspension, like FIFA has done with Blatter and UEFA boss Michael Platini, both of whom are under investigation, would send the right signal, though that can’t be only step they take.

“I think it is a serious problem because Pepsi has been one of the marketers who has constantly been supportive of cricket,” Sridhar Ramanujam, the founder of Brand-Comm, a brand management agency, told Firstpost.

“If you see from the days of Kapil Dev, they have really been supporters of the game. They have lent a lot of credibility and value to the tournament itself. If I have a major sponsor, that has its own positive impact on both the brand and the sport," he said.

New board president Shashank Manohar, who took over last Sunday, already has a host of issues to deal with and has announced a number of reforms. Pepsi’s desire to exit the league – which currently has only six teams – is another complication, and a large one at that.

“Over the last year or two years, while the BCCI has been protesting loudly, it is the worst kept secret that it is a very badly run organisation,” Sridhar said. “Now if they don’t respond by doing
something constructive, which is serious and of long lasting impact, then the writing has to be on the wall."

“This is something like a body blow to BCCI,” he said.

Cricket fans around the country can only hope it is finally enough to knock some sense into the BCCI.

A brand is like a piece of fine crystal

The impact brands can have on people is tremendous — it can be good or disastrous for you

“Brands are like pieces of fine crystal - they take time to create and are easy to break"

                                                                                                                 - Mike Isaacson

Brands are about trust

Who is a friend? A friend is someone whom you can trust, who never takes you for granted and who is absolutely reliable when it comes to the crunch. He does not let you down. And the test for a brand is to be a friend to a customer. Has Volkswagen at least the diesel version been this to its customers? Hardly and in fact has let down its targets whether its customers, investors or even the media is something that the brand will have to live down eventually. There is another interesting consequence of this. The scale of this impact will certainly affect the entire German economy and make people to be wary of German engineering which used to be such a big selling proposition in global markets.

I came into advertising over thirty years ago because I was inspired by it. It enthralled me. It fascinated me and I wanted to be part of this wonderful industry that fuelled dreams and sales. One of the ads that I really loved was the Volkswagen “think small” campaign which is given below.

What was so special about this ad and why did ‘Advertising age’ classify this ad as the greatest ad of the last century? Let’s go back in time to the sixties. The US has by and large been a vast country with great distances. People love big cars as it shows affluence - the larger your car, the more successful you were, etc. It was in this environment that Volkswagen launched the Beetle, a small car in a country that revered large cars. The car boldly flaunted its smallness and had ads that poked fun at itself like how a basketball player could not get into the car and how its parts were interchangeable. Ironically it was a German car when post war sentiment against the Germans was still strong and the Volkswagen was the car that Hitler proudly called the “people’s car”. Against the odds, the Volkswagen was a huge success. The Beetle was to become an iconic brand and Volkswagen has become one of the biggest successes globally selling millions of cars in multiple countries harping on its reliability and the strength of German engineering. The ad line in the middle would proclaim “If only everything in life was as reliable as a Volkswagen”.

https://www.youtube.com/watch?v=LW5ey3_bvVo

From where to where

I am sure you have been following the news on Volkswagen in recent weeks where the auto major has been under increasing scrutiny and found wanting. To put it crudely it has been deceitful and fudged pollution tests in order to conform to standards and has faced ignominy, erosion of brand value. The numbers are mind boggling - 4,82,000 cars effected including every possible brand. Each vehicle could face a fine of 37,500 dollars and 18 billion the possible penalties the brand is likely to face and it may take two years before it can sell its diesel cars in the US and the stock has lost 20 percent of its value. To put it simply from my point of view, a brand that I admired enormously is now something that the world looks on with anger, suspicion and distrust. What a fall!

Brands take time to build

In today’s internet world a brand can be built in a shorter time frame compared to the old ‘brick and mortar’ world and we do have examples of brands like Google and Amazon that have been built in a shorter period than most others. But whether you are an internet company or an old world company - branding needs investment, consistency, resources and a clear vision to build. But at the cornerstone of the brand’s success is a reliable product or service. And this is where Volkswagen has failed. Its product has not delivered on accepted global standards and to make matters worse, they have deceived the world and it may take ages before people forget or forgive. It is difficult to forgive the treacherous act of your best friend. Many of us had given the status to Volkswagen, me as an admirer and I am sure several car users around the world. Now they feel cheated, angry and disillusioned. This is the impact that brands can have on people and that can be good when it works for you and disastrous when it is against you as Volkswagen is just realizing.

So remember to protect your brand, zealously as you would the most precious crystal in your collection and the very best of luck.