Will Indian economy gain the momentum in short-term?:

Sorry for delay in posting, here we goes with economy topic.

Will Indian economy gain the momentum in term?:

The slowdown in the Indian economy has raised the concern regarding whether is it due to business-cycle or changes in the fundamentals. So we will look at what are the main drivers of economy for the last decade.

1. Investments
2. Consumption
3. Growth in service sector
4. Growth in Rural economy

Investment could be done in manufacturing, service and infrastructure sectors. It is mainly depends upon supply and demand factors, as of now demand side there is no shortfall. demand in all the sectors is robust and increase in household income also adding to it. Another factor which is contributing to demand side it efficiency of the industry in setting up the projects in short time. Setting up 50000 MW power plants in five years is one example for this. When everything is fine, then how would it slowdown? yes there is one reason for this. Main factors are issues in environmental clearances, land acquisitions and shortage of power supply. One more reason could be interest rate, which is actually short-term in nature.This is the area where supply and demand are not matching. Government should take some actions in these areas to improve the situation and market sentiments.

The very next factor is consumption. As we all know about it, it is very strong. Increase in domestic per capita income, urbanization and easy access of rural markets. Rising in affluence has spurred the consumption of good and services. So far as good as it is, but here comes the enemy to halt the consumption. Main factors are inflation and availability of finance  to get the goods and services. Since inflation hovering at top, everyone will ask for cut in interest rates, in my opinion it would be a big mistake. Because, increase in availability of credit will again make inflation to look at sky. Rate cut and availability of finance are inter dependents. That is why recently RBI cut the SLR by 100 basis points to increase the liquidity, which is actually useful for really profitability projects. I guess you understood what i mean. Here is one more area where government should address, Agriculture. It is badly effected by poor monsoon and shortage in power supply. But govt. can't do with monsoon, which doesn't have any control over it but it should address power shortage, which is major concern across all the sectors.

Next factor, Service sector which has more than half pie in Indian GDP. It has been growing very strongly. It has been growing at 7-8% Y-O-Y growth. It is the back bone of Indian economy. employment generation capability of service sector is very well known to every one especially to engineers. Because diversification in the sector it hasn't effected that much by EURO zone crisis. As far as it concern for indian growth perspective it is will contribute its part.

Last factor which has been the most changed area, rural economy. Since more than 70% of Indian population is living in rural India, it will affect growth. Communication technology, road transportation, SCMs (supply chain management), financial services at low interest rates and NREG scheme, which is the major factor in boosting the rural economy, are made the rural economy to increase in fast phase. And one more main factor is diversification of rural employment. In the past it was one agriculture, now it has changed totally and made not sensitive to monsoon.

 As far as my opinion, all the fundamentals are strong which would look other way. But here are some factors which made them to look other way are lack of clarity in policies (GAAR, environmental, mining and ect). Business cycle and global factors are also affecting the growth. In the other day FM approved selling of ownership in PSUs, which will kill two birds (Slowdown and inflation) with one stone.

So the final conclusion is that, since the Indian economy fundamentals are strong it can be reached to 8% growth in the very next year and more than 7% in current FY with with Govt. policy reform and i hope PC is more positive in taking actions to boost the economy.

What do you say...?

India's first hair "CLINIC"

In India, you can find the families who don't have voter card and who didn't see polling stations, but you can't find the families who are not using HUL product. Actually it owned by a Anglo-Dutch company called UNILEVER, which is having 52% stake in HUL. Can you believe Indian were used soaps in 1888?. Yes, they were used, which were made by this successful company called UNILEVER and they were shipped the soaps to Kolkata harbor. It was started as HUL in India in 1933 by Lever Brothers India ltd. In 1956 it became as Hindustan lever Ltd by merger of Lever Ltd, Hindustan Vanaspati Mfg and united traders Ltd. It is a Mumbai based company.It is the leader of FMCG segment in India and it has most efficient and effective distribution channels. it has around 20 lack outlets.

Now our topic is about a shampoo which is having largest market share, Clinic Plus. before that we will see about some stats about shampoo industry.It is 2500-3000 Cr. business in India.Mostly 3 types of shampoos, cosmetic, herbal and anti-dandruff. Before introduction of this shampoos in India 100%( my opinion) of the people were using their toilet soaps for their hair also and now also 50% of the people are using toilet soaps .In this segment major players are HUL and P&G only. Products are Sunsilk, Clinicplus, Dove, Pantene and H&S. In this industry a storm came when P&G introduction of Pantene in Indian market.
My first shampoo is Clinic Plus only, because HUL only having the distribution channels that can give their products to the rural people in 1990's.It was introduced in 1971 as family health shampoo( for mother and daughters) Now first we will discuss about STP of this product.

STP:
       When they introduced the product, they have consider women and their daughters. It was purely a female concentrated product. it was released in only one type of cosmetic which cleans hair and give shining. That time people couldn't differentiated the product and that's why men also used this product.It had been continued to rural market until almost 2000. Even i am also not an exception from this group.
      They were mainly concentrated upper middle class and urban people( SEC A, B, C &D) and that too younger people. Now it is shifted to upper class in rural( SEC R1, R2 and R3) and middle class also and this happened because of increase in customer knowledge about products and availability of products.Since it is having the largest distribution network, it is easily reaching rural market also.
    It positioned itself as a family shampoo and cost-benefit product.For rural people it the only name they know in shampoos and it is the big advantage for them. it has some drawbacks like when ever they ask for shampoo shopkeeper will give what ever is there in his shop and customers also take whatever they give. they won't insist on the particular product.

4Ps:

     First P, we will take price, this is one of the product which is available at large range of price from 50ps-90rupee bottle. Actually its pricing strategy was one of the key factor of success, especially in the rural market
because rural people can't spend so much of their pocket share to shampoo. It is available from 25ml pack -200ml pack.
   Product is our next P. When you come to the product it is absolutely good and it is available in 4-5 types and it has distinctive features of 5 in 1: Strengthen weak hair, prevent hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient. No other product is providing this kind of features in one pack.
  Our next p is promotion. When it comes to the promotions, this was their first commercial

link:http://www.youtube.com/watch?v=cYFozkRouOo&feature=results_main&playnext=1&list=PLC82B9BD2C76B3B70

They were aired a cartoon commercial with a tune called chulbuli. In that ad you can see a girl(kid) with long hair and they were showing a village king of thing with cows and bulls. she was playing with dust and finnaly she came to home her mother asked her to take bath and clean hair.it was targeted their TG and it was specified their key features in it( my opinion). The tune was so attractive and it was attractive many housewives and their children. It was succeed. 

But when it comes to the latest ads:http://www.youtube.com/watch?v=Vh2KtN_kr1A

If you watch the both commercials. both were concentrated on households and their daughters and they specified the key features by mentioning about their strong and long hair and now they have anti-dandruff also they were mentioned about types also. But it has been not changing and people, especially forgot about this product because it was not come up with new generation tastes and their needs.they have been using discount strategies like buy one get one free and bubble pack.

  Last P is place. it is available in all kinds of retail shops and it has the advantage of effective and efficient distribution channel.

SWOT:
    The strengths of the product is mainly the awareness. In India almost for every 5 people 3 people will tell the CLINICPLUS name when you the question "which shampoo did you use first time in your life". That much of awareness this product is having. Distribution network it is having and variability of the product in prices and features.
    The main weakness of the product is its traditional looking. It is the main drawback because whenever we see the CLINICPLUS we feel that it is old fashioned shampoo. Package is also weakness or drawback. It has been having same kind of package which is having mother and daughter(family).
   Since it is having great awareness among rural market it can hold the market by offering different kind of product varieties and new fashioned package which can attract upper middle class in urban areas also.
   Threats are mainly coming from the competitors and their distribution networks and their variety of product features. More specific on their segments which will divide the family into men and women, and young and old. this is the major threat posed by the competitors. Anyhow still it is the market leader in its segment but its market share is not increasing as its competitors'(chik from cavincar). When you take BCG matrix it comes under cows for HUL.

In my way if it won't come out of traditional way of package and promotions, it will no more a market leader in its segment.   what do you say?

-Bharath 

Be Ready to Beat the Best: Fair and Handsome fairness

Be Ready to Beat the Best: Fair and Handsome fairness: When i was in childhood, i have observed lot of male people applying FAIR&LOVELY on their faces. Even i was also applied once, when...

Fair and Handsome fairness

         When i was in childhood, i have observed lot of male people applying FAIR&LOVELY on their faces. Even i was also applied once, when one of friend was applying (he is having black skin). This type of situation might have experienced by Mr. R.S. Agarwal and Mr. R.S. Goenka. That's why they were introduced a bran for male skin (rough) called FAIR&HANDSOME, which is our topic here going to discuss. Let me tell you something interesting about Founders of Fair and Handsome parent Emami group. "Great people always try to create opportunities for them by taking risks" this is true in the case of these friends also. Actually there were working for Birla group and they were earning good amount of money. In 1974, they came out of the company and they were started KEMCO Chemicals with 20,000 rupees, where they were producing Ayurvedic and cosmetics in Kolkata. Initially they were only distributed their products to the dealers and pulled rickshaws while they were distributing the products to different parts of Kolkata. In 1978 they bought Himani Ltd, which is 100 years old company and based in Kolkata itself when it was not performing well. Actually it was the turning point for them to change their fate. After this they didn't look back, now it is almost 3000 Cr. worth company. Their flagship brand is Boro plus antiseptic cream and second one is Navratna oil. they did promotions through radio and TV campaigns, in that Emani tune was very successful and favorite tune for middle class Indians. In 2005, they found a wonderful opportunity in the fairness creams, which made them to introduce FAIR&HANDSOME, which is the worlds first mens' fairness cream.

STP of FNH:
            Segment for this product is men.Their targeted at middle class people who comes under age of 15-35. And in that mainly college students, who are very concern about their fairness. After introducing of the product this age group was turned to 15-50 years. By this you can easily imagine the need for this kind of products, which are targeting men in cosmetics. They positioned themselves as specialized in men fairness cream, makes girls to attract and cost-benefit product.
4P's of FNH:
           First P is product, which is absolutely good one and it was the first one in this segment.Actually this is the big advantage for them and it is also one of the reason for why they are leaders in this segment.This is actually made for rough and black skin, this is my view. In this P they are succeeded.In their product they have five unique features which are named as unique 5 power system.
1.Double Strength Peptide complex which was developed in collaboration with Activor Corp. USA.
2.Sunguard: Prevent sunburn
3.Stress Busters: prevent wrinkles
4.Anti Bacplus : anti bacterial
5.Herbo Cool : herbal ingredients.
          Now they have six varieties in the same brand name, after shave, face mask, face scrub, face wash, whitening moisture and fairness cream.
          Next P is Price. Actually they were introduced the product in the price range of 15- 50. In that time it was good because they didn't had competitors in this segment. But now lot of players are there in the market, who are targeting same segment, with different products and with different price ranges starting from 5/- rupees onwards. In 2010 they were started offering the product in the price of 5/- rupees for 12 grm.
         Next one is promotion. This is brand having SRK as brand-ambassador and TVC have been very attractive and they were targeting their segment. when you see their first TVC

link:http://www.youtube.com/watch?v=eqtWUezP8VA
         In this TVC only two persons are there, SRK and a youngster. In the start of the ad you can see the boy steeling the women fairness cream and in the middle, when he was running from girls hostel, SRK catch him and he will explain about his skin and the cream what he steel to him. And after this he takes FAIR&HANDSOME and after 4 weeks his village will gather around him. In this TVC they are clearly targeting their segment by telling the difference between men skin and women skin. In this add SRK is the big asset in conveying the message exactly and straightly with his skin color. One more thing in this TVC is, the boy steel the women fairness cream which will convey the message to the people who are applying women fairness cream to their face. Actaully this is the crucial part of ad in conveying message to the targeted segment. This is having a boy with less self esteem and confident, Actually they have it in their website also why you should choose FNH.
      In the latest TVC also they didn't change main theme of message they want to convey.
AD link:http://www.youtube.com/watch?v=hE4AoQCxmis 
      Last but not the least one is Place. They have been very successful in south India and first actually they had major share of their sales from cities, now it is change to towns and rural areas, which is having large market.
    Indian cosmetics have been growing at the rate of 16% annually and the data is also showing is 150-300cr market segment. Actually main competitor for this product FAIR&LOVELY MENZ ACTIVE, which is product from the parent of leader in the opposite gender in the fairness creams, HUL. Vaseline is also one of competitor, who are promoting their products in facebook also with an application which can change your profile pic (actually your skin color). Now a days people are attracted by costly products and they have a perception of higher price means higher quality product and they are attracting towards foreign brand. Emami FNH, being an Indian product it should focus on these two things carefully.
     What do you think?
Bharath

Perftti's perfect snack"STOP NOT"

One of American president said Indians are eating too much. it might be true when you look at the companies in ready to segment in the market. This is 6,000 Cr. market in India lead by Pepsi& Co., Parle, Huldiram and etc.
   In this market new player was entered 6 months back, who is the leader in candies segment with its' products like Centerfresh, Mentos,Alphenlibe and etc, PERFETTI VAN MELLE INDIA with its' product STOP NOT.

It was entered with two flavors-GLOZ, FoFos
FoFos having two flavors of Happy Tomato and Fully masala, which is a non-fried product. it is the first non-fried product in this segment. And second one is GLOZ, which is also available in two flavors of same as FoFos.
they have mentioned when to eat and where to eat also for different flavors,
Yummy Tomato: On the Go
Full masala: At your party
Spicy South: With friends
Katti Methi: At your home.
    When you look at the product taglines for each flavor, they have their product for south Indians, who likes spicy food very much especially for Andhra Pradesh. They were started by introducing it in Punjab and Haryan markets, but they tested spicy south in Andhra Pradesh.
In this segment main competitors are Lays, Hippo and KurKure. But in my view these are not competitors because Lays size is different and it takes two bite to complete one piece and kurkure is different in the shape of the product. But in this case it has ring shape, which is very easy to eat in my view. I had it when i was going to home during holidays. it was OK for me.

It was succeed in differentiating from others in package. package is really good and it turn your attention as it was happened to me. Its tagline is "whatever happens". which itself saying that it is trying to position itself in the gap which was left by Lays,No one can eat just one, and Hippo. it is also differentiating in prices also with two prices- 5 and 10 rupee packets.I think this may become advantage for them, but it can easily imitate by other players.

 AD link:http://www.youtube.com/watch?v=3LVCLimSkOI

When you watch the ad, it tells about "Taste to die for". Actually it was done by many brands in many segments. And it is not related to product also in my way. They are trying to get the attention of the people for getting noticed by the consumers because it is in the introduction stage. As of now it is "OK" for introduction, but when the life cycle move they should come up with performance concentrated campaigns.

Perfetti is famous for it creative ad campaigns like for Centerfresh: http://www.youtube.com/watch?v=z8s5D4sHxuY.
For this product in 4Ps, promotion is not up to the mark remaining are good. Here instead of place i have taken package, which is so attractive when compare to the other players in the market. But for promotions they can come up with creative TVC, In my way it is not a big problem for them to come up with creative TVC.

It could have come up with creative ad campaign, i don't know why they have selected this concept for the ad campaign. Lets see who will be the winner in this market. i support Lays especially Gree American salty one.

Time to wait, STOP! Time to Snack, STOP NOT may be Time to wait, STOP! Time to decide, BRAND for consumers.

Whoever reads help me to improve myself by giving comments. thanks guys next time we will discuss other topic, which is leader in current market.

Ambassador life cycle.

In 1942, C.K.Birla incorporated Birla technical services. Hindustan Motors LTD also one of the flagship branch of Birla group. First it was started with operations at Uttapara in Westbengal in 1957 and in 1958 it was introduced "The King of Indian Roads", Ambassador. Actually it was a copy of Morris Oxford,which was built by Morris Motor Co  of British. But Ambassador was a Indian version of Morris Oxford..

It was the market leader till 1980s, because of its Unique features and Closed economy. It has the features like, more spacious, diesel, low maintain cost and ideal for Indian roads. Before there were only two cars were there in the market- Ambassador and Premier Padmini.In 1970s Ambassador had 70% of market share and remaining was share of Padmini.
     In 1983 it had a huge competition from Maruti Udyog's Maruti 800. It was competed in Lot of features like, It was a diesel car, new Technology, low maintain cost and looking. In 1990 Maruti became the market leader.

Actually Ambassador had lot of problem when it was a market leader like Sturdy look, rattling sound and high maintain cost, customers perception was opposite. And one more important thing is, among their sales 16% was from Govt. higher officials and managers of banks.

It lost the market because of the entry of new players into the market with unique features and new technology. It was not changed their technology till mid 1990s, but damage was done there by the time the adopted it.

Actually it is a best example for marketing myopia, because they came up with different model of II III & IV. But there was no much different in the product and there were no much value added features to the product.

One more thing is, Price of the Product which was approximately 5 lakhs. A car which is having same features and new technology cars, like 800, are less costly than Ambassador. They didn't consider customer changing behavior towards their product. They were more concentrated on the product than their customers. even though they concentrated on the product they didn't came up with innovation. This are the main reasons for failure of Ambassador.

But Still they came up with Avigo, it's not completely new model in fact it's a modified version of Ambassador.
HM management itself killed the Ambassador by not came up new technology usage and R&D department.
Ambassador soul rest in peace.

Why Chetak vanished from market.

It had been Scooter leader from 1972-1995.After, that it was lost its position as leader and it vanished from the market in 2005 Dec 31.Reasons

1.Product is the main problem in four Ps of this business. Because, they didn't change the product color,features and design.
As shown in the above picture there is no change in the product design.

2. Second one is, they didn't realize about changing their customer perception.Actually it was introduced as a "youth" model but it changed to family Scooter.After liberalization of Indian economy lot of foreign player came to India with different model like without gears.by the entry of bikes Indian youth moved on to the bikes from Scooter especially from chetak. one more important thing is buying of bike/scooter decision was hand over to the youth in the family.it made the increase of passion about bikes.anyhow they entered in bikes but they could have made it as a women scooter by change the features like removing gears like that.
3. one more bad thing about chetak is,it had starting problem.it starts when you bend it to one side only.this was became really a big problem for them when the foreign players enter the market.Before that they didn't had any problem because of the monopoly.
in my my way these are the main reasons why Chetak couldn't make to compete with other players in the market.............

NEXT IS ABOUT A CAR FROM HM.......guess

when Chetak became humara chetak........and now it's past.

Bajaj made most of the middle class Indian people as Rana Pratap Singh, whose horse name is CHETAK.The technology came from Italian Vespa.It was launched in 1972 in two wheeler segment.It was one of the brand that could represent India. Like these very few brand were there, those are Ambassoder, Lifebuoy soap and etc....
          Do you know one thing, fathers, who are having daughters, were booked before 10 years of their daughter's marriage. can you believe this?, you should believe, because it is a fact.
        

          Bajaj Chetak had a huge brand image. The brand had the persona of a " work horse". With reasonable price and the low maintenance cost made this product a huge hit among the middle class Indians. taht time middle class people felt it was a status symbol.

             Promoted along the base line " Humara Bajaj". This made every Indian felt CHETAK was their family member.

             But it was fail to sustain inthe market from mid 1990s. If you have any idea you can add points for this.

        Reasons will be posted tomorrow.............................

Be Ready for the Best

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