"InstaCam should focus on niche markets where competition is less and margins are high." K. Swetharanyan, Managing Director, Gestetner India

Instacam is a typical example of an Indian subsidiary that is not a priority for the parent organisation. In this case, it is explained by the fact that the parent has filed for bankruptcy. We have a situation where despite InstaCam India growing its revenues and profits over the last two years, it is being denied a larger share in profits.

Neha Paul should not let that demoralise her. I would recommend that she continues to fight for allocation of some portion of the profits towards the advertising budget. At the same time, her urgent need is to concentrate on niche markets where competition is less and margins high. In doing so, she should use InstaCam's global brand equity as a tool. The aim should be to consolidate the good work done so far. Here are some things Paul might want to do:

• Focus on the studio segment so that profitable growth is ensured.

• Focus on institutional segments such as insurance and credit card companies, governmental agencies, banks, schools, and state transport authorities, where large advertising and promotion budgets are not required. Here, I would recommend a direct 'account management' concept through direct mailer campaigns, seminars and presentations.

• Focus on low-cost brand building options in different media.

Paul should also build on Singh's suggestion of seeding the market with more of their instant cameras in tourist centres, museums, banks, and photocopy shops. They can even consider the franchising option in these places, with a view to increasing the sale of films that fetch higher margins.

I am not sure how InstaCam will compete in new segments like wedding photography, where the emphasis is on life-long viewing and not so much on the convenience that instant photography offers. Moreover, wedding photography has migrated to video and CD, and even the traditional camera faces stiff competition in this segment.

Finally, I would strongly recommend that, given her budget constraints, Paul should also pursue cost reduction initiatives to create a leaner growth machine.

"Ads are not the only means of creating brand awareness. One can always piggy-back on well-known brands'' Achal Khanna, Country Manager, Polaroid (India)

Advertising spend is critical for the growth of a business, but it certainly does not make or break a business. There are other important factors, and innovative ways in which this apparent constraint can be overcome. The challenge that Neha Paul faces is of getting more bang for the little buck she has to spend on advertising and promotion. (In fact, I would suggest that every manager in corporate India be set up with such a challenge as a matter of routine!) Her focus, therefore, should be on finding innovative ways in which every rupee spent translates into sales income.

What is the first step to a sale? It is product availability. Even if there is a demand for a product, it cannot be fulfilled unless the product is readily available for consumption. InstaCam must make all efforts to build an effective distribution channel, which pumps its cameras and films at affordable prices into key markets. Purely from the market potential point of view, a strong presence in B- and C-class cities-InstaCam seems to be pretty strong in big cities-is a must. That will help generate demand from segments hitherto untapped.

Developing good institutional business would also be an important factor for the growth of InstaCam. Direct institutional sale is not only more cost-effective and ''controllable'', but I would imagine that it offers better margins too. Simultaneously, Paul must work hard on her distributors and make them extended arms of InstaCam. They would need to be kept highly motivated, given good technical and sales training, and offered high incentives to achieve Paul's ambitious sales target.

The case study suggests that profits are set to zoom for InstaCam in the current fiscal. But it may not be possible for Paul to quadruple profits year after year. I suggest that she maintains consumer interest and her own profit growth by regularly introducing high-quality and contemporary products from the stables of InstaCam US. She can easily decide what are the segments where new products will fetch greater margins.

Advertising is not the only means of creating brand awareness. One can always piggyback on known brands, with co-promotion schemes. Fastfood restaurants, cinema halls, coffee shops, and retail stores are some outlets that can help induce trial and build brand loyalty. Good customer service would be an additional factor in creating customer loyalty and enhancing sales through word-of-mouth promotion.

The task before Paul is tough. She has an aggressive business plan, but very little money not just for advertising but for expanding her operations. I think her success will come from focused implementation in niche areas, rather than trying to be everywhere. Fortunately for Paul, things are on the mend. InstaCam's turnaround seems to be generating adequate profits, which in the near future can be ploughed back into operations and a large ad spend. Hopefully, this in turn will accelerate growth and sustain the profit momentum. Back in the US, the parent seems to have found an investor, and a global turnaround could further cement Paul's efforts in India.

Since Paul has already demonstrated the potential of India as a market, one would expect the parent to back her with greater investment and resources post turnaround. In the interim, she must focus on exploring and exploiting low-cost channels that can help her rake in more sales and profits.

"Since big-ticket advertising is not possible, InstaCam should focus on low-cost, point-of-sale promotions'' Subhinder Singh, Director (Marketing), Reebok India

In the absence of advertising money, most of InstaCam's initiatives should be on the sales side, be it increasing the depth of distribution or running sales promotions. In order to get an immediate sales thrust, the company has identified certain location-specific points of consumption such as tourist centres, museums, and colleges (army canteens and transport offices should also be considered), but feels that setting up and managing a network of agents may be a problem.

I would suggest that the company hires (ideally as third-party contractors) sales executives with clear sales territories and channel focus. They should function as retainers outside the normal sales network (to cut through the bureaucracy) and work on commission basis. They could tap these direct sales avenues and high-consumption zones immediately.

Currently, InstaCam only has three distributors with huge territories. This is likely to be a constraint in terms of market coverage and investment. Instead, it should break up its markets based on growth potential and investment requirement, and appoint eight-to-ten distributors.

Doing so will give the company a bigger sales force and fresh investment. Stan Choo's willingness to give away free cameras could also be used to huge advantage with studios and other users. This freebee could even be used by distributors to appoint fresh retailers for InstaCam films.

Since big-ticket advertising is not possible, InstaCam would do well to focus on low-cost, point-of-sale promotions. That will make cameras aspirational, involve consumers, and give a foreign brand a very Indian appeal. And since the promotion will be run at the dealer end, there will be very little expenditure involved for InstaCam.

The company should also look to tapping the rural markets in a big way. This project again could be handled by its rural distributors and financed almost entirely out of their margins.

Advertising in the rural areas in terms of wall paintings, banners and hoardings would cost very little and can be wholly financed at the local level.

Cross-promotions with other brands could also be explored, where these brands bring in media money and InstaCam comes in as a sponsor of the gifts (essentially the camera).