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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
 |  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. |