Marketing
is among the most misused words in the business domain. Ergo, what
is perceived as great marketing may, in reality, not be that. Once
we got around that problem (See How We Did It on page 70), we found
ourselves with a disparate list. Who would have expected a mid-sized
fast moving consumer goods upstart from Chennai, a Finnish multinational,
and a Bollywood wunderkind to rub shoulders in the first ever Best
Marketers list? Of course, the list would have been truly complete
had we accepted a suggestion made by one of our panelists, marketing
consultant Rama Bijapurkar. "I think you forget Art of Living,"
she wrote. "It is an amazing brand, has been built by franchising
it out, attracts a wide cross-section of society, and has created
a category." Logistics played spoil-sport, but let's assure you:
you haven't seen the last of AoL in these pages.
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SET Executive VP Sunil Lulla in a blue setting:
But he ain't got no blues |
SET: Just
Jassi
The J-Factor
Indian television viewers don't like
ugly heroines, went popular wisdom. And most television companies
were content to stick to the formula, until Sony Entertainment Television,
partly out of desperation at losing viewership in the prime time
slot to Star Plus' weepies, partly out of inspiration, decided to
go ahead and produce an Indian edition of a Colombian soap Yo Soy
Betty La Fea (Loosely, Here comes Betty, the ugly one). The soap,
Jassi Jaisi Koi Nahin, has increased SET's viewership share in the
9.30-10.00 p.m slot to 30 per cent. "A sharply focussed, differentiated
programming strategy is paying rich dividends for Sony," says
Kunal Dasgupta, CEO, SET. Adds SET's Executive Vice President Sunil
Lulla, "Jassi is our pincer attack into the heart of middle-class
India." In TRP-terms, Jassi trails Star's K-soaps, points out
Shripad Kulkarni, CEO (West & South), Carat India (average TRPs
for Jassi hover around five while those for some Star serials go
up to 14); however, SET has managed to create a new paradigm in
soaps and if its product-merchandising strategy for Jassi works-there's
no reason it shouldn't given the lady's popularity; some 145,000
people have downloaded the Jassi theme as a ringtone -it could open
up an entirely new revenue stream for television companies.
-Dipayan Baishya
|
TVS Motor's VP (Sales & Marketing) R.
Chandramouli on a Victor: Easy to Riding |
TVS VICTOR: Two-wheeled
Wonder
To The Victor...
Few products have captured popular
imagination as successfully in recent times as TVS Victor. For starters,
there is something appealingly-nationalistic about a company that
rebounds from a break-up with its erstwhile joint venture partner
(Suzuki) with a blockbuster, an indigenously developed one to boot.
Then, there's the product itself, TVS Victor, positioned in what
is known as the executive segment of the market which is dominated
by Hero Honda's Splendor. "Not too many people believed that
a new product would work," admits R. Chandramouli, Vice President
(Sales & Marketing), TVS Motor Company. But the company persevered
and launched Victor in late 2001. The rest, to resort to a cliché',
is history. TVS Motor hopes to close 2003-04 with Rs 3,000 crore
in revenues, with Victor contributing around a half that. By then,
Victor would have also become India's third bike, after Splendor
and Bajaj's Boxer, to sell a million units. "The success of
Victor has turned around TVS Motor," says Sachin Kasera an
analyst at Mumbai brokerage Pioneer Intermediaries. A senior exec
at Bajaj Auto claims Bajaj and Yamaha are making inroads into the
executive segment. Still, the recent launch of TVS Centra and the
imminent launch of a 125-cc variant of Victor lend substance to
Chandramouli's claim that "the transition from TVS Suzuki to
TVS Motor was effectively done by Victor".
-Dipayan Baishya
CAFE COFFEE DAY: 142
Reasons Why
The ABC Of Coffee Bars
|
Cafe Coffee Day CEO Naresh Malhotra at a Mumbai
outlet: Within arm's reach of desire |
The year that was, 2003, wasn't kind
to coffee bars in India. The Barista Coffee Company, which runs
an eponymous chain of 130 outlets went through hell: its CEO quit,
the company's torrid growth came back to haunt it in the form of
unprofitable outlets, and service quality dipped. Which is what
makes Café Coffee Day, a chain run by Bangalore-based Amalgamated
Bean Coffee Trading Company (ABCTC) different. In 2003, the company
added 40 stores to take its strength to 142 across 35 cities. By
June this year, the number is expected to touch 300 stores across
60 cities. And the chain will close 2003-04 with some Rs 100 crore
in revenues. So, what makes Café Coffee Day click? "We
are cost-conscious," says Naresh Malhotra, a former partner
at KPMG who now serves as CEO of the chain. "And we pass on
the benefit to the customer." A value-for-money bill of fare,
he claims, has helped Café Coffee Day create a customer base
composed predominantly of people in the 20-24 years age group. And
each store, he adds, is a profit-centre. "If it doesn't make
money in six months, we close it down." Malhotra has pulled
the plug on 14 stores till now. This year won't be easy for Café
Coffee Day. Barista has a me-too model. "Our current strategy
is about democratising the coffee drinking habit and we have slashed
our prices," says Brotin Banerjee, Head (Marketing & Strategy),
Barista, and Qwiky's has an alliance with Reliance Infocomm to roll
out Java Green coffee bars across Reliance Web World stores.
-Dipayan Baishya
|
Nokia India Managing Director Sanjeev Sharma
with a new model: GR8 |
NOKIA: Share-of-pocket
Sultan
Ringing It In
In 2003, India's mobile telephony
companies added 17.5 million subscribers. Estimates suggest that
one company, Nokia, sold phones to more than half the new mobile
subscribers in India. Even assuming that 10 per cent of the 11.1
million mobile telephony subscribers India boasted in January 2003
changed their handsets, with half opting for Nokia, the company
must have sold 6.5 million handsets in India over the 12-month period.
All told, Nokia launched 13 GSM handsets and three CDMA ones in
2003 and the one person the managing director of the company's Indian
operations Sanjeev Sharma would like to thank is the Finance Minister.
"The fm played an important role when he slashed duties; companies
like us compete not just against the competition but the grey market."
It wasn't that Sharma and Co. sat back and watched the boom happen:
when it emerged that only two telcos had the standards that support
picture sharing-a key motivator for buying camera phones-Nokia India
went out and tied up with Kodak India. Customers could now visit
Kodak Express outlets and print their images out, an idea that was
so successful that the parent has now taken it to China, the US,
and other countries. Then, there was the '5555' service launched
by the company last year that allows Nokia phone users to download
ringtones, picture messages, and more. "Your phone should say
something about you, shouldn't it?" says Sharma. He uses a
9210i Communicator. Go figure.
-Kushan Mitra
PERFETTI: India's
Hottest Candy Maker
One-line Wonder
|
Perfetti's MD Stefano Pelle with his thinking
cap : Hair-and-now success |
It seems an irony of sorts that an
Italian multinational becomes the hottest candy-maker in India on
the strength (largely) of Hindi neologisms if terms such as Hila
Ke Rakh De, Dobara Mat Poochna, and Dobara Mat Chedna can be called
that. We'd love to translate these terms, but are loath to do so
given that it would mean an immediate loss of cadence and metre.
In 2003, the Indian sugar confectionery market grew by 3-5 per cent.
The Indian arm of the Italian multinational in question, Perfetti
Van Melle, grew by 20 per cent (it boasts a 25 per cent share of
the market). Distribution, marketing texts claim, is the key to
success in the low-cost low-margin sugar candy business, and Perfetti,
with its direct access to 400,000 outlets and indirect access to
900,000 more, is no exception. However, it is product innovation
and communication that lie at the core of the company's success.
Not convinced? The company's product portfolio lists over 100 stock
keeping units and Managing Director Stefano Pelle is considering
the launch of an additional 16 this year. In late 2002, a little
after the popular Hila Ke Rakh De campaign for Center Shock hit
the airwaves, Perfetti found itself in the midst of an enviable
mess: it couldn't meet demand and witnessed several incidents of
its salesmen being manhandled by irate stockists. The company is
unlikely to face a similar situation again: it upgraded its distribution
network later the same year and today, Perfetti contacts and supplies
to its trade twice a week. And Perfetti's communication strategy
has been so successful that the Indian ops are responsible for churning
out ads for several other markets. To translate and paraphrase the
punchline for Center Shock, Perfetti has clearly shaken up its parent.
-Moinak Mitra
|
Volvo India MD Ulf Nordqvist with two dinky
buses: Bus-iness is good! |
VOLVO: Magic
Bus
Ticket To Ride
What does Volvo's standing as a marketer
have to do with Cherian Thomas who works in Bangalore and visits
his parents in Kochi once a month? Everything. Reason: The 30-odd
Volvo buses plying what is now called Volvo route. "Earlier,
I used to pay Rs 450-500 for a 12-hour non air-conditioned journey;
now, I do Rs 550 for a trip in the air-conditioned Volvo which reaches
a good hour earlier," says Thomas. If people in other parts
of India haven't seen the Volvo, attribute it to the fact that the
company has thus far sold buses only in southern and western India.
At Rs 52 lakh, a B7R Volvo bus is twice as expensive as other buses.
Volvo has addressed the issue of acceptability by making the bus
longer, so that it can fit in more seats. And it stresses on comfort.
"Initially, we were hesitant to opt for Volvo," admits
Suresh Kumar Sharma of Sharma Transports, one of Karnataka's biggest
travel companies. "But customer demand forced us to."
That's music to the ears of Ulf Nordqvist, Managing Director, Volvo
India. "People believe India is a cost-based market,"
he smiles. "Our success indicates that it is a value-based
market." Today, the term Volvo bus, is part of local vocabulary
in some southern and western markets.
-Venkatesha Babu
|
Karan Johan strikes a pensive pose: He
knows |
KHNH: With
It
Mass Appeal Maestro
At 25, most people would be happy
if they knew what they wanted to do with their lives. Bollywood
wunderkind Karan Johar has done one better: he has figured out the
secret recipe that appeals to a billion Indians. His first two films
grossed over Rs 50 crore each and his third, Kal Ho Naa Ho (KHNH
for short) looks set to repeat the feat. "My sensibility adheres
to popular cinema," says Johar. "From a very young age
I have been watching and learning from films; the fact that I am
well-travelled and well-read helps." Take that learning bit
seriously: Johar analyses motion-pics that fail and studiously avoids
the negatives when he is making his own. ''He's very today with
a great feel for the ''pulse'' of the market-what sells and what
doesn't,'' says Komal Nahata, Editor, Trade Information. ''In fact
so keyed up is he on marketing concepts like positioning that other
directors often seek his advice.'' That's marketing at its purest.
-Shilpa Nayak
|
Infocomm's Head of Marketing Kaushik Roy at
DAKC: R-iproaring! |
RELIANCE INFOCOMM: Category
Killer
M Is For Mobile
In its earlier avatar, Reliance Infocomm
had to be satisfied with being L for limited mobile. Even then,
a premature launch-sentimentally timed to coincide with Dhirubhai
Ambani's 70th birth anniversary-almost proved the company's undoing.
Today, just over a year after the official launch (the commercial
launch happened around March 2003), the company boasts over six
million subscribers, a marketshare of 25 per cent-plus, a reach
of 1,100 towns and cities, and is India's largest mobile telephony
service provider. What's more, at a press conference to announce
the July-September '03 results of Reliance Industries, the company's
Vice Chairman Anil Ambani hinted that the telecom venture had broken
even. To see Infocomm's numbers in the right context, since March
2003, India's seven cellular companies together added 23 million
subscribers. The P-factor, pricing, provided the company with the
initial impetus. Even today, explains Kaushik Roy, the head of marketing
at Reliance Infocomm, the company's marketing strategy is simplicity
itself: "We are the only mobile brand in the country with no
asterisk in our ads; our ads say all there is to be said; we are
doing it all, reasonable cost, installment options, better technology,
wider network." Next step: value-added services and a rapid
rollout of Web Worlds with coffee bars branded Java Green. And never
mind the unkind critics who claim the R in R-world stands for regulations.
-Shilpa Nayak
CAVINKARE: FMCG
David
Single-serve Success
|
CavinKare's C.K. Ranganathan with some products:
Call me David! |
He fought fast moving consumer goods
behemoth HLL in the market and in the courts, has grown his company
at an average of 16 per cent over the past four years, a period
when most FMCG companies would have been content to stay where they
were, and successfully parlayed a packaging innovation he was responsible
for creating-the sachet, something that management guru C.K. Prahalad
evocatively terms single serve-into a 26 per cent marketshare in
shampoos. Surely, that must fetch C.K. Ranganathan (no relation
to Prahalad) and the company he heads, CavinKare, a mention (maybe
more) in this listing. The company, which expects to close 2003-04
with revenues around Rs 300 crore, recently ventured into the business
of beauty salons, a natural extension of its existing business (and
something that Ranganathan hopes will help grow it even further
and faster), and foods (pickles, for starters). "In foods,
the market is at the same point where the personal care one was
50 years ago," says Ranganathan, his eyes lighting up to the
opportunity.
-Nitya Varadarajan
|
MTR Chairman Sadananda Maiya with a r-t-e
masala dosa: Tasty bite! |
MTR FOODS: Curry-in-container
Pioneer
Foil-wrapped Success
Sometimes numbers tell the story
and sometimes, they don't. First, a sampling of statistics of the
first variety: Bangalore-based MTR Foods hopes to close 2003-04
with revenues of Rs 130 crore, up from Rs 103 crore in 2002-03;
the company has a 60 per cent share of the small-but-growing Rs
25 crore market for ready-to-eat (or r-t-e) foods; and revenues
are expected to nudge Rs 500 crore by 2008. Now, a sampling of the
second variety: in the past nine months the proportion of MTR Food's
revenues arising from the northern part of the country has increased
from 8 per cent to 18 per cent, its production from 15,000 r-t-e
packs a day to 50,000, and its number of stock-keeping units (SKUs)
from 20 to 30. "We have seen significant progress in a regional
brand becoming a national, if not global brand," says Anil
Ahuja, CEO J.P. Morgan Partners, a company that invested Rs 19.2
crore ($4 million) for a 28 per cent stake in MTR Foods back in
January 2002. The key challenge, says Sadananda Maiya, Chairman,
MTR Foods, is "expanding the market; we have to alleviate the
guilt of today's woman when she serves our heat and eat food; our
palak paneer and masala dosa are just as good, and as tasty, as
home-made food." The growing range-in the past two months MTR
Foods has launched a range of rice dishes, its popular masala dosa
and Upma-backed by what the company's CEO J. Suresh (he was poached
from HLL in July 2002) calls "our ever expanding reach"
has helped MTR do that and fend off competition from the likes of
ITC, Satnam Overseas, Capital Foods, and a clutch of others. And
to think it all started with an old-world Udupi-style eatery in
downtown Bangalore.
-Venkatesha Babu
ORIENTAL CUISINES
& OTHERS: Trend-spotter
Bon Cuisinier
|
Oriental's MD M. Mahadevan in one of his kitchens:
Smorgasbord surfer |
In Chennai, restaurateur M. Mahadevan
is a legend of sorts: Oriental Cuisines, a company of which he is
Managing Director, manages five restaurants and a hotel in Chennai;
other companies in his fold manage 22 more restaurants in the city
and some 40 overseas across 23 cities including Paris, San Jose,
New Jersey, and Dubai; and history records the man as the founder
of the popular nation-wide Hot Breads chain, not bad going for a
catering management professor. It isn't Mahadevan's international
business-he spends six months of the year abroad managing restaurants-that
earns him a place in this listing, although, this writer must confess
that there is a certain cadence to a man who very recently opened
a mainline French boulangerie, replete with French bakers, in Washington.
What does is his ability to spot trends as they are breaking, an
invaluable asset in the restaurants business. Tapas, as a concept,
had existed some time, essentially snacks given out at Spanish bars.
In 2003, the term went global, was adopted by restaurants in tony
urban boroughs serving food that is oh-so-five-minutes-ahead and
catering predominantly to the hip young. Thanks to Mahadevan, who
came across the concept in Paris, Chennai has India's first Tapas
bar, Zara Tapas Bar (launched in March 2003). Does that translate
into money? Well in the nine months leading up to December, Mahadevan's
group earned revenues of Rs 100 crore. That's no chump change.
-Nitya Varadarajan
|
Hutch CEO Asim Ghosh puts his feet up: His
advertising rocks |
HUTCH: Celeb-communicator
That Message Thing
Hutch didn't grow its mobile business
at the scorching pace Reliance Infocomm did in 2003. For those interested
in numbers, the company's subscriber-base grew by 105 per cent in
2003, as compared to Reliance's incalculable 0-6 million, and Bharti's
100 per cent. What we're interested in, however, is how Hutch managed
to register that growth-arguably on the strength of two of the most
creative advertising campaigns the country has seen in recent times.
"We see the ad campaigns as part of a larger communication
mix and as a continuum devoid of any hyperbole and clichés,"
says Asim Ghosh, Managing Director, Hutchison Essar. Have the cool-and-retro
animated campaign and the high-emotion pug-and-pal one worked? Well,
Hutch claims its brand recall score across the circles in which
it operates, expressed as a proportion of that of the nearest competitor
has moved from around 80 per cent to about 120 per cent. And the
company, which was adding just under 100,000 subscribers at the
beginning of 2003, added over 300,000 in December. In a category
where A.R. Rahman's tune is creating its own magic for Airtel (Bharti),
and Reliance Infocomm's blitzkrieg threatens to drown all other
messages out, Hutch has managed to cut the clutter. That's something.
-Moinak Mitra
TOYOTA QUALIS: Marque-Marvel
The Machine That Made A Company
|
TKM's Deputy Managing Director K. K. Swamy
with a Qualis: MUV-ver & Shaker |
Toyota Qualis, the multi-utility vehicle
with which Toyota Kirloskar Motor (TKM) decided to enter the Indian
market, won't win any prizes for looks but it has certainly managed
to win over the Indian consumer. Four years after its launch, over
100,000 Qualises have been sold in India and the MUV is holding
its own against brash new vehicles of its ilk. In 2003, for instance,
Qualis outsold M&M's (Mahindra & Mahindra's) Scorpio by
approximately 25 per cent; for the record, the company's share in
the MUV segment in 2003 was a whopping 32.5 per cent. So, just how
did a car with dated looks, perhaps non cutting-edge technology,
and a hefty sticker manage to cement the reputation of the Japanese
carmaker in India? One reason for this could be the reputation Toyota
has always enjoyed in India. However, it was TKM's customer-centric
approach that won the game: most MUV-makers aren't too particular
about customer-needs. "We always ask the customer what he wants;
we have to understand the customer, otherwise, the vehicle will
not sell," says K.K. Swamy, Deputy Managing Director, TKM.
Toyota's famous build-quality-evident in the constitution of Qualis-helped.
As did, as the CEO of a rival carmaker points out, "the fact
that no foreign companies were operating in the segment they chose
to enter." The CEO, however, is quick to add that "Toyota
did a dashed good job of convincing customers that the Toyota setting
up shop here was the same Toyota from Japan." That's evident
in the six-week waiting period for one of the company's new offerings,
the relatively pricey Corolla.
-Kushan Mitra
HOW WE DID IT |
To help us identify India's best marketers,
our correspondents contacted eight academics, consultants, and
marketing professionals and interviewed them on companies that
had, in recent times, managed to: create a market; create a
category; grow a market or category; launch a wildly-successful
product or advertising or promotional campaign; alter consumer
habits or perceptions; grow faster than the market and the competition
and gain marketshare; or use a distribution innovation to address
a marketing issue. The eight experts who responded were:
S.
Ramachander, Director, IFMR-ACME, Chennai
Y.L.R. Moorthi, Professor (Marketing), IIM-Bangalore
Atanu Sinha, Associate Professor (Marketing), ISB
Rama Bijapurkar, Marketing Consultant
Prasoon Joshi, National Creative Director, McCann Erickson
Harsh S. Verma, Lecturer (Marketing), FMS-Delhi
Sukanya Kripalu, CEO, Quadra Advisory
R. Sridhar, Partner, IDEAS-RS
Their responses were collated and 13 best marketers identified.
Our correspondents then fanned out to meet these marketers.
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