How can Total leverage its VFM platform to reach its target markets? N. Gupta of Raymond, R. Jain of UB Group, and B.M. Ghodeswar of NITIE suggest various ways of doing so.

By R. Chandrasekhar

We fell short of target,'' snapped the youngish-looking man seated in a high-back leather chair, not making any effort to hide his displeasure. About a dozen executives seated around a big, oval oak table, squirmed in their seats. ''We had targeted 10 per cent growth, but what we've achieved is just 8 per cent. Can I know why?''

Abhinav Kumar, the young CEO of the diversified Total Industries, had reasons to be upset. Under discussion was the company's performance in the colour television (CTV) market. Apart from consumer durables, of which CTV was a part, Total had three divisions-batteries, switchgears, and soaps. But durables was the most high-profile, and Kumar knew that any slack here would adversely impact the other divisions, too. Kumar's question, then, was directed at Srikant Suresh, the president of durables division.

''A detailed breakdown of sales is revealing,'' said Suresh. ''The urban demand is up by just 3 per cent, which means that the real spurt has come in from the countryside.''

''That's news,'' observed Kumar. ''I always had this feeling that we were underestimating the potential of rural markets. But the fact that expensive CTVs are finding buyers there is certainly surprising.''

''My analysis points to two trends,'' continued Suresh. ''There is a huge demand in villages and small towns for a larger screen that all premium models provide. The reason, as we found out, is that unlike in cities, the number of viewers per set is in excess of 10. The joint family is still not only the norm, but it is considered perfectly in order for friendly neighbours to come in and watch your TV.''

''I think we'd do well to pay attention to user habits,'' noted Kumar.

''Here's the second interesting trend,'' offered Suresh. ''Almost all of our rural buyers made cash-down payments. Those who opted for installment schemes were almost negligible.''

But farmers get cash-rich only after harvesting, right?'' queried Kumar.

''I thought so, too,'' admitted Suresh. ''But apparently the rural consumer is credit-shy. It is only in urban markets that financing options are in great demand.''

Ever since Total had set up its first manufacturing facility in 1973 for making black and white (B&W) sets, it had consistently taken the value-for-money (VFM) platform to become a market leader. In fact, the success of its durables division was due to smart positioning in what Total thought was the popular end of the market. But now that seemed to be getting turned upside down.

''My sense is that the dynamics in the durables market are changing,'' opined Guneen Roy, head of the soaps division. "In fact, the change is happening across product segments."

''I agree,'' said Ratika Sahai, the young chief of the batteries division. ''Pricing based on income levels is yielding place to pricing based on the offer of specific and tangible consumer benefits. What is driving the ma