Good guys always win. Arvind Kejriwal’s story though is unfolding otherwise

Good guys always win. And I think Arvind Kejriwal’s innings in the politics reinforced the fact. Last two months though have saddened the lot of people who believed in the Arvind Kejriwal Story. I still think over a longer period of time, he might bring about a change in the political mindset even though he may not remain a major player.

He won people’s hearts with his actions which were in sync with the way people liked their leaders to be. Simple, straight-forward and action-oriented. Everything he said after forming his political outfit, Aam Aadmi Party (AAP) was in tune with the ground realities. Corruption has always been an impediment all over the world and it is no different in India. That does not make us attuned to it and he rightly made it is agenda to root out corruption. He also understood the people’s problems with the current political functioning and the disillusionment of the working class who contribute the majority to the exchequer. Against all odds and disrespect from the leading political parties and with a lot of trepidation, he fought the Delhi state elections 2014 and came out the second largest party. As destiny would have it, he became the Chief Minister of Delhi.

With all due respect, he had the chance to prove that he walked the talk. Unfortunately, we do not know what transpired or what was the thought process of him and his team. They went berserk with announcements which by all counts were populist. A lot of unconventional methods went into the kind of governance. Austerity drive that did not materialise, alleged anarchist attitude with the Dharna, vigilantism to catch corruption through hidden cameras, on-ground mob mobility against alleged drugs & prostitution. All the actions were for the larger good although they might not be too pleasing to those who follow the rule of the book. It won him friends and foes as well. Lot of arguments about the process being right or wrong. And then the Jan Lokpal. Not being allowed to get it through, the unnecessary accusation of the Lieutenant Governor being ‘partisan’ and the ego battle to pass the Jan Lokpal finally took out life out of the Arvind Kejriwal Story with his resignation as New Delhi Chief Minister.

It is a case of missed opportunities. He could have been slow with the announcements and could have had a measured approach to governance. He though thought otherwise. Wanting to go for the big-bang statements and have an immediate impact.  I think he has over-estimated the success story of AAP far too much. I hope I am proved wrong. There is a theory going around that they are looking at the bigger battle now i.e. the Lok Sabha elections 2014 in May by contesting 350-400 seats out of 544. Apart from the resources required for such a large scale elections, they do not have the individuals who have a mass acceptance. Merely fielding social activists or corporates will not guarantee success. It worries me that in case the results do not come out as expected, the whole movement might fizzle out. Thus I hope better sense prevails and Arvind Kejriwal takes a long-position rather than go for instant gratification. You should not try your luck too far. But then Arvind Kejriwal has being unconventional and might make a lot of us ‘eat crow’ with its success going forward.

Bottomline is- goods intentions do not necessarily translate into actions. And altruism isn’t always better for others especially when it comes to being on the administrative and governance side. 

Romanticism- thy name is Rahul G

                                                   (pic source: www.funnychutkule.com)

It always is a pleasure to see romanticism in every walk of life. Rahul G personifies the romanticism in politics at its pinnacle. Much has been said about the interview this week and reams of newspaper and electronic space will be devoted to intricately dissect every word said. It was sort of a damp squib at the end of it.

Any individual who isn't related to India and has not seen the last 10 years of India's journey would not be blamed if he chooses to endorse him for the next PM. On the basis of sheer innocence and forthrightness. But as always, there is more to it than what meets the eye.

Rahul wants to go for 'Business Process Re-engineering' of the political system i.e. make radical changes than go for ‘Kaizan’ i.e. slow and steady improvements. Nothing wrong in the thought. However, if you consider the anomalies, extremities and dichotomy in behaviour. On one hand you want to scrap the ordinance which bars individuals with criminal proceedings to stop contesting elections but on the other, you align yourself with the RJD chief implicated in a scam. On one hand you pride yourself on bringing in the Lokpal but on the other, you save the politicians from the Adarsh scam. On one hand you talk of 'women empowerment' but on the other, you do not take a 'zero-tolerance' stand against injustice meted out to the fairer sex. On one hand you talk of opening up the system and bringing in meritocracy in selecting individuals for elections but on the other, you are a beneficiary of dynastic politics. On one hand you talk of RTI as a game-changer but on the other hand, you have the biggest scams in India- Coalgate & spectrum allocation wherein your coalition partners ran amok and you were a sitting duck. On one hand you talk of Narenda M and his government abetting 2002 riots in Gujarat in spite of him being exonerated but were audacious enough to accept that 1984 riots had a few Congressman involved. This isn’t an endorsement of what happened in Gujarat. It is your double standards on two heinous events.

Having said this, you still want to believe him when he says that he isn't afraid of Narenda M because it is a trivial thing for someone who has seen his Grandmother and Father assassinated. When doubts are raised on him being afraid of a one-on-one contest with Narenda M, it is a metaphor being used. We know he isn’t physically afraid of Narendra M and he need not be. If I want to be harsh on him and turn this issue on its head, it can be argued that he is indeed afraid of being the PM as it gets him directly in line to be assassinated next. He might like to be in power yet without having this precedent and thus have a dual power centre as is the case with his mother and the current PM. I do not want to believe this but circumstantial reasoning might force me to.

'Women empowerment', opening up the system to meritocracy, making India a manufacturing hub to compete with China, and eradicating corruption are issues common to not just India but all countries in the world. It is a no-brainer that this has to be done. You will be treated with respect if you show- in actions- how this will be done.

Sycophancy is ingrained in Indian politics and thus he isn't shown the mirror by someone. And this is the reason you have to Aam Aadmi party taking shape to fill in the void. They have ideas and have shown the willingness to take actions. They are faltering at the moment but no one doubts their credibility. Credibility for the other political parties is at stake. Lip service and honest intentions will only help you to a break-even point. Deeds will get you the respect and support to govern. An attempt to have an upheaval in the current political system isn't necessary. What is necessary is to bring accountability. Having your ear to the ground will help. Hope a time doesn't come when you behave like Queen Marie Antoinette of France who, on being told that the peasants had no bread, said “Let them eat cake”.

Request to the Aam Aadmi Party’s First Among Equals

 Success has taken quite a liking to you. Your impeccable strike rate of hitting the bulls-eye on first attempt might have few precedents. IIT in first attempt. Civil services in first attempt. Chief Minister in first attempt. And who knows, Prime Minister in first attempt as well. Life is good to good people.

 You have been like an Arab spring of 2013 for India. It has shown our democratic foundations are as strong as ever. But admit it that you too would have been surprised by your performance in the New Delhi state elections. Even more surprising would have been Indian National Congress' support to you to form a government. And most surprising would be your own acceptance of the support provided by the INC. Because your entire election was fought against Congress' indiscretions vis-a-vis corruption. Pragmatic people have no doubt this was the right thing to do considering the high cost of re-elections. And this also gives you an opportunity to prove your mettle the first time. The start of your innings as the CM started on good footing with attempts to be a common man as the name of the party suggests. No red beacons on cars. No palatial bungalows. Although these are small issues and tokenism, you have won the hearts of millions by practising the Gandhian principles of austerity and not just wear the Gandhi topi.

 Things though have been off-course. Nothing against populist measures such as electricity and water subsidies but retracting on the FDI has been a regressive step. Yes, there are instances of FDI not helping many countries though that cannot be considered as empirical evidence. As marketers have understood, no other country can even come close to India's diversity in terms of cultures, languages, perspectives and landscapes. FDI will help India in solving supply chain issues via infrastructure growth and reduce inflation related to supply-side constraints. Kindly have a rethink. You also need to have an economic cell to develop economic policies because being new, your team doesn't have the experience of policy-making. Not that it’s a problem but it needs to be addressed on priority.

 Two things have to be addressed by you- citizen empowerment and economic development through the most-abused word in politics these days – inclusive growth. Both these things are inter-dependent and could act as imbalance in isolation. When the citizens are empowered, there will be economic development and when there is economic development, the citizens will feel empowered. Your movement was started with an endeavour to root out corruption and the disillusionment of the populace towards the political establishment. The latter is because of the former and the helplessness towards the former. All countries face the uphill task against corruption and India is no different. It would be foolhardy to think that corruption could be eradicated although that could be the ultimate vision. We, as human beings, are the ones who make laws and therefore have the wherewithal to find loop holes and make ways around it. Materialism is the root cause of corruption and any government cannot change the thinking of an individual. It would be better to concentrate on the process and reduce the dependence of any individual on another individual especially a government employee in different department. Corruption in private sector is generally towards the giver rather than the taker. It is in bureaucracy that corruption is at an individual stage and palm greasing becomes the norm rather than an exception. Thus rationing, excise, property, water, electricity, energy, public works department and such places need to have oversight and less influence over policy. If this can be done, then corruption automatically takes a back seat. Sting operations & phone help-lines will help but as I said, eventually people will find a way around it. gauging the root cause will help rather than excessive policing. It is better to have more controls in place rather than administering medicine on a case-to-case basis.

 The other necessary issue is of economic development. And this I am saying from a national perspective. There is a need to bring accountability in public institutions. No white-collar job is safe in private sector where you perform or perish. Why doesn’t the same barometer apply to government institutions? There is a tendency in India to apply for government jobs because they offer job security. An endeavour should be made to change the perception because this results in lack of accountability. There are no checks and balances. Cartelisation is banned through the Competition commission of India which keeps a hawk eye on private companies. But no accountability is the biggest cartel by government employees. They can hold the public to ransom at their whims. Socialism has its advantages but this is harming all. Free electricity, free water, low energy prices are affecting the overall economy because subsidy becomes the norm rather than an exception. Would it not be better to have the infrastructure and businesses in place that people earn enough to pay market price. This would bring equilibrium to society and the gap between the haves and have-nots will come down.

 The kind of activism that is on display will alienate the thinking middle-class and further increase the disillusionment with politics. A goodwill wave with the Aam Aadmi party isn’t strong enough to catapult it into the national centre-stage. You need to go slow. An attempt to expedite might result in unfavourable situations. Like if you contest 400 + seats in the Lok Sabha elections of 2014, and if you lose heavily, it will have a domino effect on your supports, majority of whom are youngsters looking for instant gratification. It would be better to show you mettle in New Delhi and decide to strike it by going national. That doesn’t mean you don’t contest Lok Sabha 2014 but go small and in territories where you can relate to the issues at the grass-root level.

You have bought politics from a dirty word to the buzz word. Efforts need to be in place to sustain it and work towards cohesive governance. 

Why the Indian Rupee isn't appreciating anytime soon

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I might not be wrong to say that at no point in time since India attained sovereignty, has the Rupee depreciation seen such a public discourse. Social networks have played a part in this. It also points to a fact that the Indian masses are much more educated and aware of the economic scenario in India and the world over. They are discerning to the issues affecting their lifestyle and savings. India was always known for its scientists and mathematicians, from Aryabhatta to Bose among others. Indian economists were not too revered. It was always about the Keynesians & Hayekians. Things have changed now with Nobel laureate Amartya Sen to the Prophetic Raghuram Rajan and Ex-RBI governor YV Reddy, who got accolades for his iron fist in insulating India from direct damage of the 2008 economic tsunami.

Getting back to the vertical descent of the Indian rupee, it’s slightly difficult to give weightage to the factors for this slide. Global economic scenario and India's economic policies are to be blamed. It was a foregone conclusion that as soon as cheap money through US quantitative easing starts reducing, it will have direct consequences for the emerging markets where majority of this money flowed. The timing though was not factored in. Among the BRIC countries, India is the only country with most diverse democracy. It can be strength and equally a weakness. The economic loosening for the Indian industry expected as early as 2004-5 never occurred. Foreign institutional investors (FIIs) and Foreign Direct Investment  (FDI) in India was ‘despite the policies rather than because of’. The overflowing coffers of cheap money from developed nations had to flow in India. The developed markets were saturated with predictions of a laboured economic recovery. Economists again got it wrong this time with US showing more than just green shoots. Naturally the money was going to flow out at the slightest hint of recovery. This was exacerbated by the India's obsession with gold and the ever-burgeoning import bill for energy- oil & gas.

India has flattered to deceive more often than not on the economic front and this time was no different. With the desired policies not on the anvil, the rupee will continue to fall or abate slightly but appreciation seems a far-off. A year to go for the General Elections 2014, economic policies would be the last thing on the minds of the government. With so many allies to answer to, arriving on a consensus on policies which are harsh in the short-term but good long-term is extremely tough. The focus will be on cobbling their allies to stick together during times when there will be heavy horse-trading. The government and the bureaucracy will go in auto-pilot mode with no major reforms allowed to go through.

Increasing interest rates too cannot be an option because the domestic industry has been calling for reductions from the Reserve Bank of India to facilitate growth. Interventions by the central bank in currency markets will be a temporary balm. It cannot be sustained. Thus they too have been wary of meddling with the markets. Good economic outlook in US/Europe, coupled with lack of reforms and significant energy increases - all these factors are heavily against the rupee strengthening anytime soon. It might recover about a percentage point or two but to levels about a year back seem improbable. 

A clear path might start be visible once the General Elections are over and economics takes precedence over politics. That too would depend on the overall economic strength of the developed markets. Till the time, India has to survive with a weak rupee and hope to live to fight another day.

Pepsi & Coca Cola – contrasting TVCs

Pepsi and Coca Cola are fighting for the same market through the same media. Such a stark contrast in its communication. Coca Cola’s TVC is a continuation of its Open Happiness message. A melodious and hummable sound track about all the crazy things we do. A good blend of young and old characters can be seen in the ad. Pepsi’s TVC, on the other hand, has a peppy tune. It uses its three brand ambassadors, Priyanka Chopra, Ranbir Kapoor and Mahendra Singh Dhoni. Clearly they are targeting the young audience. Coca Cola’s ad though is sans any brand ambassador. Over a last couple of years, Coca Cola seems to have moved away from using any brand ambassadors.

Pepsi’s ad is more a reflection of the current thought-process of the young Indian. They want to live in the present, enjoy in the present without much future planning. It may seem reckless on the face of it but it shows a couple of things – one, they are confident about the money flow in their future i.e. with respect to their careers and two, confidence in the Indian economy to outgrow any downturn and churn out high paying jobs. Coca Cola is the more sedate of the brands and its communication mirrors that. 

Pepsi has a slight upper hand in the coming summer due to its title sponsorship of the IPL and it will go all out to leverage this. Plus having MS Dhoni as its brand ambassador, arguably IPL’s Most Valuable Player over the last 5 IPLs, will catapult it over Coca Cola in the short run at least. 

Mahindra and its font change

When Mahindra launched their vision of ‘Rise’, I hailed it as an outstanding though-process. Mahindra was getting ready to catapult itself into one of the biggest brand for automobile manufacturing in the world. It already was the largest manufacturer in terms of Tractors with the acquisition of Ssangyong.

With the aim to continuously strive for more, and rise in terms of everything- volumes, numbers, brand awareness and brand equity, Mahindra was charting its way on its own accord. The type of communication through Television, print and online showed that Mahindra had marketing and brand managers attuned to the highest forms of creativity. Mahindra has changed their font in its latest communication change. The ad released in national dailies talks about the rationale behind selection of the font. Creative renditions of fonts are subjective like all creative outputs but the adjectives used to explain the font are slightly haywire. How can hunger be attributed to that font. Or for that matter, nimbleness. Quite strange reasoning. Plus it mentions that the logo is subtle in change, which indeed it is. But if it was subtlety was to be kept, why change it in the first place.

Another thing of note is that the full page print ad doesn't show the Mahindra symbol. Wonder about the future usage of that symbol. And if it is going to be used in future, why make its absence conspicuous. In the complex jargon of advertising and abstract thoughts, basics or obvious interpretations are given a miss. 

Source: Mumbai Mirror - 30 January 2013

Hermes - Absolute luxury

Only a handful of brands command the kind of awe, adulation, aspiration and unqualified love as Hermes. The mere mention of the name gets ooh-and-the-aahs from the audience. Wearing a Hermes accessory is a sign of arrival on the uber-luxury scale. A favourite amongst the fairer sex especially the page 3 socialites from Sydney to Mumbai to London and New York. Hermes gets unparalleled attention.

This full page ad just showcases the carefree attitude of the Hermes user. It is of note that nowhere in the ad is there a mention of a product/accessory of Hermes. The question arises that if it has so much of a brand value, why does it need to advertise. The objective of the ad is only to increase awareness of the brand in the nouveau riche and the aspirational-wealthy class. Thus although an ad, it hardly has the requisites of a print ad. Just the contact details to know more about the brand. It isn’t loud yet subtle and classy in its appeal. The target audience of Hermes doesn’t differ in any of the attributes required by a buyer based on location.  Undoubtedly, it is an international brand. 

No wonder then that the creative rendition, by Publicis EtNous, isn’t from the Indian arm of Publicis and uses an international model. Luxury brands have to be extra-careful in its communication because the awe is its unique selling proposition. It is intangible. It is priceless. And it’s tender in its image. Handle with care. Hermes it is.

The only slight disappointment - it should have been on the first page rather than the last.

Source: Times of India - Bombay Times- Last page - 16 January 2013

Mercedes – downgrading the elusiveness

Everyone feels the pinch of the downturn. Luxury brands feel them the most since they are conspicuous consumption. Luxury brands chose the communication of conspicuous consumption to stand apart and be a luxury brand. The secret of a luxury brand is to always remain aspirational and elusive. And yet have a target market to generate your profits. Louis Vuitton, Hermes, Gulfstream, Porsche, Gucci, Rolex, Jimmy Choo among others are brands who stand for absolute luxury.

These brands command a premium for the badge value. And the only way it is lost is if it becomes ubiquitous and thus loses the aspirational value. There is always the pull factor associated with such brands. They should never go for push. Discount, sale, freebies, value-for-money should never be associated with luxury brands. Mercedes was most luxurious known brand in India for a long time before Indians started knowing about BMW, Ferrari, Porsche, Rolls Royce. Having already lost this tag, Mercedes is doing itself no good by having the ad as above. Zero insurance cost, zero maintenance cost and zero interest cost seems like an ad by any of the other mid-level car brands such as Maruti or Tata or Hyundai. Anyone owning a Mercedes wouldn't just have that car but at least one more. Such costs wouldn't matter to the targeted audience. Reduction in these costs wouldn't be the deciding factor or compelling factor to buy a Mercedes. Although it seems that this ad hasn't been done by Mercedes but by the Distributor, Mercedes shouldn't have allowed it. Building a luxury brand takes eternity but losing it doesn't take more than an ad like this one.

Source: Times of India – Bombay Times – January 06, 2013 

IDEA’s idea of customer engagement

Honey Bunny Song with the coolest family

India is one of the fastest, if not the fastest, growing countries for telecom companies with tele-density on an ever increasing curve. No wonder the last few years have seen outstandingly creative work coming for telecom brands. To name a few, the Vodafone pug and then the zoozoos, Airtel’s catchy tunes, Idea’s sirji, Tata Docomo’s series of ads.

Idea has consistently come up with diverse attempts to stand out from the clutter. Their new campaign ‘honey bunny’ tries to go the ‘ringtone’ or ‘caller tune’ way. A famous musical piece always gives a top-of-mind-recall. it’s very much a tried and tested formula. Thus goes away from the risk-taking creatives IDEA is known for. Having said that, the tried and tested works and this case is no different. We are seeing, or should I say hearing, a lot of these ring tones and caller tunes.

An example of the popularity can be found out from the following video done by a family. The entire family is the cast who enjoy the song to the fullest. IDEA brand managers would be smiling from ear to ear on seeing this creative rendition of their baby. It won’t be a surprise if this video goes the ‘Kolavari de’ or ‘Gangnam style' way. The success to viral videos is the simplicity and how it connects to the audience. This video is shot well, although post-production work has gone into it. It doesn’t look like a professional’s job done in a studio but a wonderful effort nonetheless.

This video might not result in increased sales for IDEA but it increases brand awareness. With technology available for shooting videos, companies must attempt to engage customers to join in fun. This could give some food-for-thought to brand managers to leverage technology to gain customer engagement. 

Nice campaign by Gillette – shave or crave!

They say role models sway buying decisions or at least influence it heavily. Hrithik Roshan made the one-day stubble as a fashion-statement after his mega hit debut movie. It surely resulted in guys shaving less and keep a stubble. Shah Rukh Khan sported a beard in Chak De India. It might not have resulted in guys keeping beards but it did bring facial hair in vogue again. Gillette’s launched its “women against the lazy stubble” campaign in 2009 to make men shave and not keep a stubble.  2012 now has the ‘shave or crave’ movement by Gillette. It talks about women opposing the evening stubble. An attempt to increase sales through increased shaving times.

This strategy, with an objective to increase product usage, is the low-risk growth strategy as mentioned in the Igor Ansoff product-market matrix. Gillette authenticates their claim of women opposing facial hair by showing off the Nielsen survey. The findings may be true but it’s quite a personal choice. A good attempt by Gillette in a low-involvement category. Not only would it increase sales, though not substantially, but also help in top-of-the-mind-recall for the Gillette brand. With good looking ladies such as Malaika Arora Khan & Neha Dhupia endoring the product, it will also grab eye-balls.

Gillette Fusion Gamer priced at Rs. 299/- seems to be a tad high. Such a strategy should focus on absolute margins through volumes. A use-and-throw razor priced under Rs. 100 would have been more appropriate. 

Renault Ensemble

This ad deserves to be on the front page of a leading daily newspaper or its centre-spread. Not because it has a great creative but because of the objective with which it is made.

Renault has had a very slow start in India. Their partnership with Mahindra & Mahindra resulted in Logan but it did not last long enough. Seems the synergies did not work out between the between the Tractor-behemoth and the French elegance. Renault rejuvenated itself and we see this awesome ensemble (Renault Koleos, Renault Pulse, Renault Fluence, Renault Scala & Renault  Duster) from the design houses in France. This ad showcases what Renault has to offer and thus had to have a bold visibility to take effect. Rather this ad was languishing on the last page of Hindustan Times and one of the middle pages in Mumbai Mirror eschewing the whole objective. And what's worse, it was just a half page ad.

Wonder if their agency Law & Kenneth had any say in the size and placement of the ad because they would have not agreed with what eventually happened. 

NO! YAMAHA for guys

Yamaha’s foray into the scooter market, for females, with the launch of Yamaha Ray hasn’t enthused me too much. Yamaha, as a brand in India, has a masculine feel about it. It is one of the earlier entrants in the Indian bike market in 1990s before the Hero Hondas, Bajajs, TVSs were even thinking about bikes. Yet it seemed they were never keen to market their products in India. Reasons could vary from an lack of understanding about market potential or focus on other high value developed markets or reluctance to introduce products in the price range available in India.

Past few years has seen them aggressively enter the Indian market with the launch of its various products such as FZ, FZ S, Fazer, R15 among a host of other 10+ products. They did well to have John Abraham as the brand ambassador. Although not a leader currently in the Indian two-wheeler market, Yamaha is making deep inroads with its offerings. Their Yes Yamaha campaign is well received and has a strong recall value.

Yamaha always was considered as a Male brand. With John Abraham as the brand ambassador and the kind of communication, the belief was further strengthened. The belief would be on shaky grounds now that Yamaha has come up with scooters for the fairer sex. Yamaha Ray has Bollywood actor Deepika Padukone as its brand ambassador. The target audience would relate to Deepika endorsing the product. But it surely is going to make the boys unhappy. Imagine tomorrow Harley Davidson coming up with a scooter for girls. Would it not affect the cult following the brand has. With this new offering, Yamaha might be able to expand their market and add to its bottom line through volumes but it loses on its core value of a masculine brand. Building this identity has taken years but breaking it isn’t go to take that long.

The least they could have done was bring it as a product, and promote it, with an individual brand identity separate from the family brand Yamaha. Probably that might have helped preserve its original character. And the guys would have kept on identifying with YES YAMAHA

The politics and economics of FDI !

The INC  would feel a sense of déjà vu because in its first term, the CPM pulled out over the nuclear deal issue and in its second term, the TMC is pulling out over the FDI issue. Both parties from West Bengal, a state which has not grown as well as other states (with Metros).

The big-ticket reforms by UPA 2 have taken everyone by surprise. The corporate world has welcomed the move, the so-called rating agency S and P has stopped short of downgrading India’s credit rating and the stock markets are on an upward movement. All the news channels are going crazy over the positive news as if a magic wand has been taken out by the government to spur India on its growth trajectory.

Somehow we are made to believe that when the corporate world is happy, everything is fine. There is a perception the world over that when stock markets jump, it is good news. There is no thought given to how does it impact the common man. Now I m not being a socialist. We saw it during the 'occupy' Wall street movement in the US. The markets show just the 'sentiment' not reality. The volatility in markets is considered as a positive virtue whereas for me it shows the frail nature of thinking of those involved in influencing the markets. How do the fundamentals of a company change every day?

Is there a thought given to how would FDI in retail help the farmer. Would the farmer directly be able to sell to the manufacturer of food products or sell it directly to the retail megamart. What are the resources to enable him to do that? We indirectly assume that these multinationals such as Walmart, Carrefour or Tesco would take care of the back end of the supply chain. There have been umpteen examples of companies failing when a business model which works in one country is applied in other country. Yet we believe Walmart will be successful in India. Yes, we would get more products from abroad and there would be reduction in prices but it is beneficial only to the middle class and upper class. Not to the producer i.e. the farmer.

There are insinuations that the government acted because there were criticisms in the western media. It may or may not be true. For the western world, FDI or FII in developing countries decides whether the country is moving in the right direction or not. Should we not think ourselves about our people? I may sound as protectionist and anti-globalisation but it isn’t the case.

Yes, our fiscal deficit is increasing with diesel subsidy. Why can we not increase taxes for companies say, for example, over USD 10 billion. If a company makes USD 100 million in profits taking USD 10 million as taxes doesn’t change much in its coffers except for the promoters stake.  We have a leading airline about to go bankrupt although its promoters own a multi-million dollar racing team, million dollar cricket team, owns yachts and flies only corporate jets. They hold the country to ransom since there is systemic risk of losing jobs, PSU banks losing money indirectly affecting the investors.

Politics is affecting the economy adversely. Awaiting the time when we would start thinking in a balanced way and move over materialism. 

Let the money printing press run overtime

Post-2008, 'stimulus' to the economy has been the most widely used word - by economists, analysts, bankers, businessmen and news readers. An unprecedented and coordinated action by central banks the world over saved the financial markets from brink of collapse and put the world economy back on a dilapidated growth track.

Quantitative easing was leading the stimulus package with fiscal inputs complementing it. Things became much better in 2009-10-11. Now there is again talk of quantitative easing number 3 in the US. In the Euro zone, developed nations are being saved from sovereign defaults. The survival of some nations in the Euro zone is in doubt. China has poured billions of dollars in its economy to stimulate its domestic consumption. Back home in India, there are calls to reduce interest rates. And a call to remove CRR to increase money flow. The Mahatma Gandhi National Rural Employment Guarantee Scheme acts as the fiscal action following the Keynesian principle of government intervention.

The point of note here is that everyone wants money flow or rather volumes of money at their disposal to grow. An improvement in fundamentals is not asked for but an artificial resuscitation is looked as the solution. Short- term solution without its long-term implications. I don't remember it but someone did say that this is like a drug. There is no looking back from this vicious cycle.

Does it not convey the current psychological state of man where immediate material pursuits are sought at the expense of wellbeing. Everyone is under pressure to perform. Stock markets panic on a day where it opens in red. There is a thread-bare analysis of anything and everything even though it might not yield any concrete understanding.

Everything is like fast-food. Instant gratification is sought continuously.

The rich are getting richer. Middle class fights to be in this class. And the poor get poorer inspite of doing all the fieldwork. What is the world going towards? A downward spiral from where the only way is down because it is all artificial. Natural growth is nowhere close. No one wants to go up the hard way. Inflation is going to be a perennial affair and how much every banker says that it will be controlled, it isn't happening due to this huge paper money flow.

I shudder to think what would be the state of economy a decade from now. Artificial stimulation would be the new normal. And the printing press will continue to work overtime!

God help BBDO from Blackberry !!

A blunder on the part of BBDO India as seen in the copy of the above ad - i.e. spelling mistake of 'transcend'. A systemic failure should we say? The creative must have went to so many checks at the copy stage, art stage and the client servicing stage as well. Yet it slipped through at all levels. Whats more, it is a front page ad. God help BBDO from the wrath of Blackberry brand team.


Source: Times of India - Mumbai edition - 09 August 2012. 

Mr. Jack Daniel – NO SAINT!!

After a very long time, I have seen a print ad which has a headline which made me sit up and take notice. The creative doesn't seem very out-of-the-world yet it grabs your attention. The icing on the cake, as I said, is the headline. And so true it is. I am a teetotaler but I know the kind of following and influence Jack Daniel’s has on my friends who are whisky connoisseurs.

I liked most about the creative that it draws an analogy with guitar player. The individual who plays guitar is in some sort of a trance when he plays it (this is what I have heard, I don’t know whether it is true or folklore). Even better is the end copy “Make Mr. Jack proud. Celebrate responsibly”. A direct reference to the target audience who are at a particular stature in the societal ladder, both in terms of affluence and respect. Hats off to the creative team. No key number is visible thus indicating that it is an ad showcased in the developed world and been directly released in India. 

Siyaram’s- Casting Coup

Brand ambassadors, they say, should fit the brand in terms of its character and personality. When a brand needs to take that leap into the luxury and aspirational segment, the lineage & heritage is highlighted. But when you are Siyaram’s who has always been a mass-market brand with strengths in the semi-urban and rural areas and quite less aspirational value, trying to position one of its products as a luxurious is difficult. Siyaram’s has always been playing catch up with Raymond’s and Reid & Taylor

Siyaram’s though has come up with the ultimate casting coup. They have signed on Bollywood’s original stylist and fashion designer Manish Malhotra as the face of their luxury product Royale Linen. Considered by them as “the most luxurious linen to be introduced in the market” which is “100% pure”, Siyaram’s plan to ride on the fashion quotient of Manish Malhotra to make its presence felt in the luxury space.

Of its various brand ambassadors over the years, from sports stars and Bollywood actors Hrithik Roshan & Priyanka Chopra, this seems to be the perfect brand-fit which will add weightage to Siyaram’s as a luxury brand. It could also help in its distribution if Manish Malhotra lets them showcase their range of fabrics in his exclusive boutiques. They could use his influence in the world of fashion through his fashion shows.

The company plans to spend about Rs. 30 crore on promotional activities. The above print ad in the Bombay Times of Times of India (1st May 2012) could have been placed better. Probably the first page would have been a better option. The ad creative though, nothing out of the ordinary, is elegant. 

IPL 2012 B(r)andwagon – creatively boring

IPL is considered the hottest property for advertisers in India. Apart from the World cup that is. Last year’s IPL started within a week of India’s World Cup triumph and it was obvious that corporate India did not have the deep pockets to spend on IPL. Cricket fatigue was a concern this year along with India’s not too well a tour to Australia and the subsequent Asia Cup.

The aspect that has been disappointing though is the ads on display during this IPL. It seems the best ad was the IPL ad by Set Max created by Ogivly. The number of advertisers has not gone down but the quality of ads certainly has gone down. Most disappointing have been the Vodafone ads. Not a single ad has been entertaining. It certainly does not have any recall value. Idea ads with Abhishek Bachchan too have been really boring. Ranbir Kapoor’s act as an old-fashioned restaurateur too isn’t quite entertaining or worth remembering. The series of Reliance’s ads featuring Anushka Sharma & Rannvijay are not new.

Considering the onset of the summer, you find the cola ads everywhere but the thing of note is that there is no campaign by Coca Cola featuring their flagship product. Rather you see Sprite ads. On the other hand, the ‘change the game’ Pepsi ad featuring the football heavyweights Kaka, Messi & Drogba with IPL heavyweights MS Dhoni & lightweights Virat Kohli, Suresh Raina & Harbhajan Singh is really average to say the least. The Thumbs Up ad featuring Southern superstar Mahesh Babu is the only saving grace. ‘Aaj kuch toofani karte hai’ is a nice tagline. Katrina kaif’s Slice ad is decent but not wonderful. Similar is the case with Anushka Sharma’s Canon powershot ad.

All in all, a very dull season for advertising enthusiasts like me. 

LIC Single-Premium ad gaffe

Advertising space in newspapers come at a very high premium. Second only to the television. The premium increases with the placement of the ad in the newspaper. Top-right hand or a jacket ad or a double-spread ad. A gaffe is quite a rarity in newspapers since it is proof-read. However a gaffe such as the above is quite serious ( Single premium ad followed by a post to be careful about the product). Surely it was not intentional from the newspaper. Yet LIC marketing managers must be irate on seeing this piece. The damage may not be too much considering the clutter of ads and information on financial products. LIC managers and more importantly their advertising agency and media agency, should be doubly careful the next time around.

Source: Economic Times 28^th March 2012 Page 13

An analogy between Sachin Tendulkar and your veteran Chief Executive

If there is one thing in India that can overshadow the budget session, which is followed with much interest, then that thing has to be cricket. Last week as the Indian Finance minister was busy reading out the script, an unwritten script was unfolding. Although this was expected a lot earlier, one would say “better late than never”.

I am of course talking about Sachin Tendulkar eclipsing the Mount Everest and making his own peak for others. A peak others won’t dare let alone think of. My mind though wanders on the diverse opinions made by the connoisseurs. Some want him to retire now, some wanted him to retire after the world cup, some want him to play till he feels he wants to play, some feel the selectors should adopt a touch stand and make him toe the line on his retirement plans so that the team can be built for the future and the opinions continue unabated.

I could draw an analogy to a corporate executive who has served his company for over 3 decades has risen from the rank of a trainee to the chief executive. When the trainee climbs up the ladder with his outstanding talent, he is given the room to experiment. This blossoms him further catapulting the company into high growth and making that employee the celebrity. Same is the case of Sachin Tendulkar. As a prodigy, he showed India how to be aggressive yet maintain its demeanor. The growth was phenomenal. Just like a novice to the highest echelons of power. He has everything at his mercy.

Law of nature though has to take its own course. With age, Sachin’s mastery started diminishing. Just as the Chief Executive’s decisions did not work as before. The market changed and so did the though process. Sachin’s age took toll and bowlers/ captains started getting a measure of him, albeit to a very less extent. Now the chief executive started becoming a liability. Fresh ideas needed to be included but who would ‘bell the cat’ and tell the CEO to hang up his boots. Who will tell Sachin Tendulkar to retire?

In a company, grapevine would probably used to tell the CEO that he is no longer the force to reckon with. In Sachin’s case, the media does that job. The CEO has achieved everything, topline-bottomline-profits-new products- innovations- acquisitions- you name it and that’s been achieved. Just like Sachin. Anything achieved more will not make much of a difference to the already burgeoned cabinet. A Cabinet with invisible accolades.

Borrowing from Maslow’s Hierarchy of Needs, both have reached the self-actualization stage. Both live to contribute towards others. In Sachin’s case, it’s the country and for the CEO, its his company. Let them be where they are. They know when is the right time to call it quits. They would be the first one to accept it when they see the runs drying up or the strategies being not as effective as was construed.

Its very easy to criticize but very difficult to sustain excellence over a period of long time. Just like Sachin or the CEO, pointing about the lack of contribution after a spectacular career would amount to being called an opportunist or some one who uses people till their sell-by date and then removes them unceremoniously. As they say in cricket, “form is temporary, class is permanent”. Sachin should decide when he has to go. Similarly the CEO too would know his sell-by date. Hankering after them to quit would be gross injustice to their contribution.