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"Consumer research should be used to determine unsatisfied
consumer problem. The branding strategy must address these
problems profitably"
Shunu Sen, CEO, Quadra Advisory
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The
first thing that MT paper should do is to get its executives to
talk like businessmen, not like a bunch of university professors.
Can you imagine someone in your office actually say 'there's integrity
in words committed to paper'?
The problem is simple. The solution is not
easy. Earning profits from commodity products is becoming difficult;
and globalisation will ensure that it becomes even more difficult.
No wonder, the premium segment grows at a healthy 15 per cent compared
to uncut paper, which has a growth rate of 5 per cent and is under
pricing pressure.
Branding of commodities is not new. Blended
tea was branded over a 100 years ago; cooking oil 70 years ago,
and within the last 20 years, we have seen the branding of salt,
atta and, now in Delhi, the branding of vegetables, milk and sugar.
Chaudhuri must understand that his main job
as Marketing Director is to create customers for MT Paper at a profit.
He can only do so by differentiating MT Paper as a brand from others,
and offering value to customers which is greater than what is offered
by competitors. This would enable MT Paper to charge a price premium;
yet provide additional satisfaction to its customers.
It is clear that both Rajavat and Chaudhuri
instinctively feel the need for branding; so the question of whether
the former should give the latter the go-ahead (to start a branding
exercise) is in some ways rhetorical. MT Paper has really no choice.
What should they do? The first thing is to
decide that MT will be a business that is consumer-led, rather than
led by anything else-such as manufacturing capacity, or history,
or even the chairman's opinion.
How does one do so? First, by developing 'consumer
insights'. What are 'consumer insights'? Unsatisfied problems faced
by the consumer in that category. Specialised consumer research
can be used to determine these-which are business opportunities
for MT. Then, the business must rank the solutions to the difficulties
identified, in terms of potential profitability.
The business must look at its own capabilities
to provide quick solutions to some of the consumer insights. These
must represent the low hanging fruit, which should be the first
priority in developing a brand. A multi-functional team should be
put together to make this happen.
Finally, there must be a branding strategy
developed on the basis of profitable solutions to consumer insights.
This would impact the R&D policy, HRD, manufacturing strategy
and the development of a comprehensive product and branding roadmap.
It is not going to be easy, but it has just got to be done. I hope
Chaudhuri is the man who can do it, and Rajavat will provide the
necessary backing to these ambitious plans.
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"Before devising communication
strategies to create a brand image for MT, the management needs
to fight against its commodity mindset"
Rajiv Sheopuri, VP (Sales and marketing),
JP Paper |
The
issue is not whether rajavat should give Chaudhuri the go-ahead
for the launch of MT Infoyug and the 'Satyamev Jayate' campaign.
Going the brand way to generate 'consumer pull' seems imperative.
But the magnitude of the challenge needs to be understood. Creating
a brand in a commodity-driven market entails the uphill task of
overcoming market inertia. Before devising communication strategies
to create a brand image for MT, they need to fight against their
'commodity mindset'. This will mean transforming a seller's market
to a buyer's market by placing the end-user at the centre of all
business activities. Even after that, creating 'consumer pull' is
a mammoth task, as evident from Chaudhuri's peeve that most CEOs
use his paper but are unaware of it. Paper is perceived to be a
low-involvement category. But then, perhaps we should take inspiration
from the classic ingredient branding case of Intel, which has become
such a strong brand.
Chaudhuri is right in looking to differentiate
the brand in the consumer's mind, thus moving beyond mere labeling.
But they first need to look at brand relevance-something the consumer
can relate to and rely on. Chaudhuri needs to bring forth the consumer's
perspective. He needs to overcome the end consumer's indifference
towards paper, for which he will need a synergistic 360-degree integrated
marketing communication approach, involving packaging, promotion
and distribution, with emphasis on retailing.
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"A Relevant positioning
strategy should be worked out, focusing on the benefit platform
of non-fade-a 'crafted to last' brand of paper"
Jagdeep Kapoor, Chairman & MD Samsika
Marketing Consultants |
In
my opinion, consumers buy brands, not commodities. Brands are built
in the minds and hearts of consumers. Rajavat should definitely
allow Chaudhuri to go ahead with the brand-building process, but
I do not agree with Chaudhuri's communication stance. It is based
more on 'content' rather than the 'surface' on which the 'content'
is written. The 'Satyamev Jayate' campaign-selling paper as the
"brand for those who are on the side of fact, not fudge"
and being a sign of the "courage of one's conviction"-
is more appropriate for a newspaper, not for paper.
The first step for MT is to set out a marketing
objective. Let's assume the objective is to build a brand that ensures
sustainable growth of at least 30 per cent for the next three years,
as well as to have a buoyant and healthy bottomline.
The brand strategy would have to include a
mindset change in the management, away from commodity selling to
brand marketing. Further, the brand strategy would have to include
a full product portfolio as well as brand experience strategy focused
on enhancing the writing experience. The marketing and sales department
would have to look at the brand in a consumer-oriented manner.
Next, the marketing team would have to select
a primary target segment, and a couple of secondary segments to
be addressed accordingly. This would have to be done with a consumer
product approach, whether it be the executive, student or literary
segment. A relevant positioning strategy would have to be worked
out, focusing on the benefit platform of non-fade-a 'crafted to
last' brand of paper, which is a perennial paper with the promise
of 'MT Paper-Fill It Up! Make it wordsworth.'
The word 'MT' sounds like 'empty', and that
could be used as the creative key, inviting the consumer to make
the best of the paper-and make it 'worthy' with words. This communication
strategy would have to use mass media (print and television), and
with a high brand recall, the consumers' intention to buy would
go up.
The branding exercise would raise the paper's
perceived value. The pricing strategy would have to be premium,
and care has to be taken in having different stock keeping units
(SKUs) with a balance between price and size. To ensure widespread
availability, the sales and distribution network would have to be
strong.
Lastly, regular research and consumer feedback
would serve as vital inputs to the progress of the brand-building
exercise. To conclude, Rajavat should give Chaudhuri the go-ahead
to build a growth-oriented and profitable brand, but on the basis
of my strategy.
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"For a long term brand-building
straegy, the company must roll out a communication plan based
on its established virtues like stability and reliability"
Yogesh Agarwal, Group VP (Sales
& Marketing), Ballarpur Industries |
The
paper business of the MT group is a classic case of a traditional
Indian business house trying to grapple with changing times. Just
embarking on a branding exercise or coming up with catchy slogans
for advertising with little strategic meaning may not fetch the
desired results.
For a long term brand-building strategy, the
company should roll out a communication plan based on its established
virtues-like its long history of stability and reliability. It should
also educate customers on the impact that paper quality has on the
image and quality of written communication for a business.
Entering a new segment like copier paper is
the right way forward for the MT Group. It is not only a high-growth
segment, but also opens a new market for the company other than
conventional printing paper, which is plagued by price cycles.
An emotive campaign such as 'Satyamev Jayate'
without any objective message will not work for a product category
that is a blind spot in the consumer's mind. The branding for copier
paper must be directed not only at corporates, but also at copy
shops or jobbers, since they constitute a large market. The consumer
campaign must carry a message on better aesthetics and longer life
of paper, while the one directed at jobbers must address relevant
concerns like better functionality in the copier machines, jam-free
operation, less machine maintenance and so on.
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