JULY 20, 2003
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Q&A: Jan P. Oosterveld
Meet a Dutch engineer who describes his company as "too old, too male and too Dutch". This is Jan P. Oosterveld, 59, Member, Group Management Committee & CEO (Asia Pacific), Royal Philips Electronics, a $31.8-billion company going through tough times. His mission is to turn Philips market agile and global in outlook.


Bio-dynamic Tea Estate
Is there a way to rejuvenate tea consumption? Rajah Banerjee, the idiosyncratic owner of the 1,500-acre Makai Bari tea estate, among India's largest, thinks he has the answer to the industry's woes: value-added tea. 'Bio-dynamic' tea, to use his phrase. Here's a look at some of his organic and flavoured tea experiments.

More Net Specials
Business Today,  July 6, 2003
 
 
Broaden Your Focus

"Rann would stand a better chance of meeting its targets if it broadened its focus to include a wider swathe of the market"
, Vice President, TNS Mode

Rann Readymades' approach seems to be impulsive and lacking in long-term vision. Trying to beat the market recession through discounts, attempts to cash in on the semi-casuals trend, or even introducing lycra-fittings aimed at yuppie fitness freaks has only served to confuse the customers even more, diluting, in turn, the core Whizz image.

Let us analyse the issue keeping Rann's end-goals in mind. "A million shirts by the next fiscal" and "a steeper growth'' are among the company's stated objectives. Given this, focusing only on the top end of the market (the globe-trotting Indian business perfectionist) is not exactly a wise decision. Rann would stand a better chance of meeting its targets if it broadened its focus to include a wider swathe of the market.

Widening the target group would also mean looking at different need segments. A comprehensive understanding of the distinct need groups would be necessary. From Vijay Nath's experience, apart from the "stiff collar formal white" need, there seem to exist "bold colour semi-casual" and "fitness-driven yuppie" segments as well.

The "stiff collar formal white" segment is looking for exclusivity, and superiority. This segment comprises people who want to stand out from the crowd. The product, price, positioning, retailing need to be tailored to suit the needs of this segment. An exclusive outlet with the right ambience would be a step in the right direction.

On the other hand, the fitness-driven segment attaches more importance to product attributes such as freedom of movement. The products that the company puts out in this segment should exude energy and fitness. Lycra-based offerings would go down well with this segment.

"Bold coloured semi-casual" shirts are something that the more sociable and fashion conscious customers will take to. This segment has a preference for products that are in line with the newest fashions.

There are many more consumer segments other than the major ones mentioned above. The starting point of any branding strategy should be a thorough investigation of the different need segments in the market. The next step is to design appropriate offerings for these segments. Today, the company's Dali collection, the Spellbound collection and the Flex collection are catering to needs of different segments, though they come under the same mother brand Whizz.

It makes sense for a company like Rann to have a diverse range of sub-brands under the Whizz umbrella name since its products have to satisfy different, often contradictory, consumer needs.

For sustainable growth, a multi-brand strategy with focused positioning would be a safer bet than putting all its eggs in one basket proverbially. After all, fads come and go, but brands are there to stay.

"Everyone loves a good story. For many years, Whizz forgot to tell the world what it stood for. This is an etiquette brand''
, Managing Director, Alok Nanda and Company Communications

Before we decide to praise or run down Nath and Rastogi, it is necessary to understand the shirtings market in India. In recent years, the market has developed several segments, the major ones being that of the casual shirt, the dress shirt, the party shirt, and the formal shirt. It makes sense for a shirt-maker like Rann Readymades to avail itself of the opportunities that such a trend presents, and claim a bigger share of the country's wardrobe. Failing this, it is likely to remain a niche player in the formal shirtings segment, and perhaps over time, lose its edge there as well.

These changes are being driven by a fundamental shift in the market. The retail scenario is changing. Given the limited amount of time that a consumer has, and the convenience he has now come to expect in his or her shopping experience, there has been a large-scale proliferation of multi-brand outlets across the country. This has major implications for the shirtings industry.

Marketers now have to make sure that their brands are adequately represented in this vital retail space. Those brands that fail to make it big in this space are likely to be perceived as inconsequential and be passed over by the premium customer segment unnoticed.

On the other hand, this retail explosion has created new opportunities in its wake. A customer walking into a multi-brand outlet is captive: he can be exposed to the entire range of a company's products, increasing the possibility of a purchase on his or her part. This has also made it necessary for companies to re-invent their 'own brand showrooms', partly if not entirely. The comparative weakness of these 'flagship stores' in retaining consumer attention has led to a bazaar-like atmosphere with shirt collections being launched thick and fast. The Dali, Stainless and Flex collections are a response to exactly this kind of market pressure.

Should Rann remain focused on a pure formal shirt brand? I think not. That would be ignoring the realities of the market and fundamentally, how we shop today. A more pragmatic solution would be to define the core values of the Whizz brand and see how they can be coherently applied across different shirt segments.

The Whizz brand clearly has its roots in etiquette. It is 'rule-oriented'. However, it needs to be remembered that every category or dress style has its own rules, whether they are spelt out or not. Etiquette holds good across most casual clothes. And everyone needs an authority to tell what's in fashion, what is 'correct' as a piece or an ensemble. So Whizz should stand for 'correctness' of dress, no matter what the occasion.

Nath and Rastogi have their work cut out for them: everyone loves a good story. For many years, Whizz forgot to tell the world what it stood for. What it needs to do is communicate its story in mass media along with its new product offerings. But even more so in the retail environment.

"Whizz should always lead and never follow. The brand should innovate and drive newer trends in the country, rather than emulate"
, President, Arvind Brands

The challenge for whizz is not unique. Every major international fashion brand is always trying to discover the 'golden mean' where it preserves its brand heritage on one hand, and yet remains contemporary in an ever-evolving fashion landscape. However, like all complex brand challenges, the solution lies in attacking the problem in a multi-pronged fashion, because no single solution could possibly exist. My recommendation?

Create a strong brand sub-segmentation, keeping the mother brand intact. This could be done at every level (communication, merchandising material and also the store level). Internationally, a good example of the skillful handling of a similar challenge through such a solution is Ralph Lauren. Over the years, while Ralph Lauren has kept its strong brand franchise to its core discerning audience intact, it has created strong sub-brands such as Chapps by Ralph Lauren, Polo by Ralph Lauren and Ralph, to cater to the needs of a peripheral evolving audience.

In an attempt to remain desirable to a fashion-driven clientele, Whizz should always lead and never, never follow. The brand should innovate and drive newer trends in the country, rather than emulate. A strong international analogy is Thomas Pink.

Even within the fashion arena, a brand like Whizz should keep in mind its roots. There is fashion and there is passion. Whizz would never create fashion trends through loudness in its styles and colours. However, it would seek to become more trendy through relatively muted and deep-rooted fashion in fabric and silhouettes.

Whizz should widen and deepen its merchandise range in two areas. It was hitherto not present in, for instance: knitwear, blazers, jackets, suits, winterwear, men's grooming accessories, and so on. This would create an aura of contemporariness around the brand.

The right balance between the brand's American heritage and a very modern and urban outlook can be achieved through an appropriate evolution in the brand articulation. This can be done in terms of the brand's logo on one hand, and the look of its stores on the other (exclusive stores being 3D personifications of the brand).

A very powerful example of a brand which successfully carried out that sort of evolution is W.H. Smith, a chain of British book stores. There was a whole generation which grew up with W.H. Smith as a habit. On the other hand, there was a younger audience with more spending power which thought of these stores as fuddy-duddy. W.H. Smith did not want to lose its core aging audience by suddenly creating a brand which these people did not identify with. Yet, it wanted to lure the younger age group. It wanted both father and son. So W.H. Smith embarked on a brand change programme, which was carried out in three phases over five years. The results are for all of us to see today, and also emulate.

Lastly, any brand, especially a brand in the market space of fashion, cannot be everything to everyone, and Whizz must realise this. There would definitely be people who just do not deserve a Whizz!

 

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