The last few years has seen quite a few attempts at breaking into the within the city transport segment, and Tata Ace has been the undisputed success story in the segment. Industry experts estimate that Ace has over 80% share of the 2,500crore small truck segment (one tonne capacity) and Ace can actually be credited with the creation of the segment. But this blog post is not about Ace, which I have written earlier, but about a new competitor which has entered the segment, Mahindra & Mahindra Gio, a 0.5 tonne small truck. The best part about the new launch is the price at which it is available Rs 1,67,000 which is at a slight premium versus the three wheelers and substantially lower than Ace which is around Rs 2,80,000. And in terms of carrying capacity Gio is able to take much higher load than the three wheelers. So in effect what Gio is also trying is create a new a segment for itself below Ace and just above the three-wheelers.
Saturday, December 12, 2009
Last Mile Connectivity and Mahindra Gio
The last few years has seen quite a few attempts at breaking into the within the city transport segment, and Tata Ace has been the undisputed success story in the segment. Industry experts estimate that Ace has over 80% share of the 2,500crore small truck segment (one tonne capacity) and Ace can actually be credited with the creation of the segment. But this blog post is not about Ace, which I have written earlier, but about a new competitor which has entered the segment, Mahindra & Mahindra Gio, a 0.5 tonne small truck. The best part about the new launch is the price at which it is available Rs 1,67,000 which is at a slight premium versus the three wheelers and substantially lower than Ace which is around Rs 2,80,000. And in terms of carrying capacity Gio is able to take much higher load than the three wheelers. So in effect what Gio is also trying is create a new a segment for itself below Ace and just above the three-wheelers.
Thursday, December 10, 2009
Hamara Bajaj
Thursday, November 26, 2009
Distribution Equity and the leverage it provides
The concept of DE is one which has not been studied much, though at the operational level it is a very strong concept and distribution driven companies realise it's utility. As with brand equity, this equity also provides firm with a substantial edge in the marketplace, and the strength is by virtue of its distribution channels. The difference would be that brand equity is in a consumer's mind versus distribution equity is embedded in the marketplace. Both the equities talk about the benefits both in the present as well as in the future.
The current manifestation of the concept of DE in the field can be seen in the ease of launch of new products, because companies which have a very strong distribution channel find it much easier to launch new products,as they can piggy ride the existing well established products. It is logical for products in the same category, like a soft drink company leveraging its existing distribution to launch a new flavor of variant or pushing a new variant. But some companies have used their channel strength to even enter into totally new categories , like ITC which has leveraged its channels strength and equity to enter new markets like snacks, and even FMCG.
Companies like AMUL have been leveraging this strength for quite long to test launch new products , and based on the acceptance they decide to launch the product nationally with adequate marketing support. If not , the product is given a quiet burial. So their channel strength provides them a low risk option for trying out new products.
I think this concept of DE is more significant in markets like India, where the complexity in distribution channels is very high and your channel strength might be as critical for your success as your other marketing elements. And the concept deserves more attention than it has been receiving till now..
Thursday, November 19, 2009
Experimentation Still 'ON' in Indian Retail
First issue seems to be the one with regard to the right format for the Indian market, experience till now shows that just copying the international formats will not work, like initially the larger formats were thought to be the the best, as it made sense for the retailer in terms of economies of scale and operations, and internationally large size formats were more acceptable, but then does it suit Indian consumers. With the slowdown many of the large formats were closed down , but now they are back in fashion, with Aditya Birla Group starting 6 new hypermarts, and Shopperstop with its Hypercities. Related new link.
And not that the so called "Indian Formats" are succeeding in , failure of subhiksha being the case in point and now the news that Vishal Retail is also in a similar kind of situation, the problem seem similar across both of them, too much of borrowing to expand faster and then.... Hopefully we should be able to save Vishal..
Next is the aspect of trained manpower, initially seen as a sunrise industry it attracted many professionals across various industries, but then with the slowdown and the realities of retail operations hitting hard, many of these people have packed their bags and gone back to their older companies. And the problem manpower is even more acute at the junior levels where people with right skills and training is a huge challenge..
Last issue though might seem a little ticklish to an outsider is the fact that India has topped the ranking in retail theft, the shrinkage put at 3.2 per cent of sales. And in a industry which runs on wafer thin margins this is huge and sufficient to tank many a retailers. More on Indian retail theft link.
Though it might seem that all is negative but along with these challenges the potential is also enormous , which is why it is attracting so many players, and many more waiting for the change in FDI regulations to make an entry.
Tuesday, November 17, 2009
Big Bazaar Versus Kellogg's
I should start with an apology that I have not updated the blog for more than a month now, will try and be more regular from now on....
I observed this new item a few days back and thought about writing about it, the fight between Big Bazaar and Kellogg's , and it is not first of the kind that Big Bazaar is involved in , some time back it was with Cadbury’s and even before that it was Lay's. All the three were removed from the shelves of Big Bazaar, and reasons given were the differences Big Bazaar had with the margins that were being given.
Some people might see it as a normal routine affair, bargaining between two parties for better margins, but it is not. It is part of the larger plan which big Bazaar has and the reality which marketers are walking into, the world which will be dominated by Dealer owned labels. In the news you can also read about how Big Bazaar is not too worried about the fact that Kellogg’s would not be there on its shelves, it has it's own Brand Tasty Treat which would be there as an substitute.
The other day I had an opportunity to listen to Mr Manish Tiwary, who heads the Modern trade Division at HUL. a the division which deal with the organized retailers like Big Bazaars, Spencer’s and he shared his concerns how the dealer brands increasingly put pressure on the brand marketers. He said that the time when you could keep getting more customers just on the basis of cosmetic improvements to your brand is more or less over, and only those brands which have a very strong proposition and value for the customers will be able to survive.
Though in
Link2
Thursday, October 8, 2009
Wholesalers in India..Necessary Evil?
Thursday, October 1, 2009
Monday, September 28, 2009
Tuesday, September 22, 2009
Push Carts as Retail Options
Sunday, September 13, 2009
Celebrities and their contracts, Vijender Singh and Saina Nehwals enter multi-crore contracts...
Wednesday, September 9, 2009
Jet Airways Strike Customers pay the price...
Friday, September 4, 2009
Twitter Updates 04.09.09
Sunday, August 30, 2009
Emergency Contraceptive Pills , are they being marketed too well???
The topic which I will touch upon today is something which marketers would generally avoid discussing .... the ethical angle in marketing. We one could also call it the dark side of marketing .....
Thursday, August 27, 2009
Changes in Indian Ad Sphere- Tata Tea, CondomCondom and Anil Ambani Group's Media Campaign
Most of what we see on TV sets today falls into the pure-selling end of the spectrum and the obvious is not what would interest people, but here are the exceptions ....
In the recent past we have seen ads being used to promote ideas and inducing change in habits like the one on usage of condom , by BBC world service trust . I had written earlier about the campaign too (link) and the website also shares the impact of the ads, quite an interesting read, link . Similarly there is the Bell Bajao Campaign against domestic violence.
The recent campaigns of Tata tea "Jaagoo Re Campaign" falls somewhere in between the pure-selling and 100% philanthropy. They have a series of ads, which started with issue of increasing awareness among youth towards voting, to the latest one against corruption in the country. Now though these campaigns are not directly about the tea, but the product also makes an entry into the ad, though at a later stage.
The third category of ads, like the one being used by the Anil Ambani Group, where they have made use of large press ads to question the issue of costs involved in developing Krishna Godawari (KG) gas basin by RIL. Through these ads they are trying to share their side of the story with the common man and somehow also bring him into the equation. These kinds of campaigns have been done in the past , when companies have felt the need to share their perspective with common man, as was done by the Private Airline operators in the country some time back.
Though these kind of ads form a very small part of the ad world but I think they show the versatility of the purpose of advertisements.....
Monday, August 24, 2009
Regional Brands in India gaining over the larger brands??
Thursday, August 20, 2009
Social Media, A Good Video
In India we are still a few years behind, so maybe it gives us a glimpse how the future would be ...as has been indicated by the TCS web 2.0 survey...
Saw the video on John Battelle's blog...
Tuesday, August 18, 2009
Negative fall-outs of technology
Monday, August 17, 2009
Twitter Updates 17.08.09
- Africa Rising 900 million consumers http://bit.ly/LeV6s
- Vikram Vetal Method of Training http://bit.ly/ane5i
- Barber Branding in India by Godrej http://bit.ly/Ji9DX
- Bisleri - Mineral water Brand in India http://bit.ly/oZ2R9
- Mahindra Tractors offers Laptops to Tractor Buyershttp://bit.ly/1H78me
- Building Brands Indian style http://bit.ly/1oVQjX
- New Blog Post , Festive Season and the factors dampening ithttp://bit.ly/NoLj5
- Delhi Metro Stations to get Handicraft Shopshttp://tinyurl.com/phmwp4
- RT @rohitbhargava: How To Avoid Being A "Twanker" (The 10 Basic Rules Of Twitter): http://ping.fm/7UcyP
- New mini-discount season in India, http://bit.ly/eaw6r
- @rohitbhargava - Why your brand may WANT to be anti-social online: http://ping.fm/vqmDi
- In India we have many countries within India, South specific strategy works for marketers http://bit.ly/Bo9vk http://bit.ly/Bo9vk
- branded sugarcane juice in India http://bit.ly/ZIddI
- shifting consumer spending patterns in India, http://bit.ly/19q6pG
- Nobel laureate Amartya Sen in his interview on concepts of Neeti and Nyaya to discuss the burning issues of todayhttp://bit.ly/1h8UCN
- Industrial sector growth throws up a surprise, 7.8 % growth in Junehttp://bit.ly/Oirv5
- H1B Visas at one time use to get exhausted in a matter of days if not hours, this year has more than 20k still vacant!!http://bit.ly/weK0D
- RT @alltop Alltop - Top India News http://bit.ly/feIao
- RT @GuyKawasaki: RT @ruchitgarg:Amazingly efficient food delivery system -Mumbai dubbawala http://om.ly/FkZJ Microsoft even used it for mkg
- New Blog Post - Linkage between Indian Market and Monsoonshttp://rajeshaithal.blogspo...
- weak monsoons to dampen FMCG sales in India http://bit.ly/MGlq1
- Brand Building through direct-to-consumer media strategyhttp://tinyurl.com/mwr8fl
- good source of marketing videos, Linstrom http://bit.ly/12zrJJ and Ries Report http://bit.ly/xEPvK
- Kwality Walls Icecream's Indian Strategy http://bit.ly/14SEhJ
- Jyothi Labs into laundry services, http://bit.ly/bMJXd
- Santoor No3 Brand of Soap in India, http://bit.ly/ghUcs
- RT @OPENForum Customer-Centric Design: Got Empathy? : The World : Idea Hub :: American Express OPEN Forumhttp://bit.ly/wWm04
- Slowdown impact on airlines http://tinyurl.com/n5nvhq and retailers strategies http://tinyurl.com/mwhpgd
- Idea telecom's Campaign "walk when you talk"http://tinyurl.com/lb7hgl
- Below the line promos work in rural India, http://tinyurl.com/m9x9ot
- Social Franchising in heath services, for more checkhttp://tinyurl.com/lmz69h
- Consumer perceived benefits of ads low? http://tinyurl.com/nwt2ta
- Liril brand story in India, http://tinyurl.com/m3u3zh