Adieu CK Prahalad...

Coimbatore Krishnarao Prahalad…CK to his loved ones…more famously CK Prahalad…is no more. I was one of his many admirers. One of the foremost thinkers in strategy and management donned many hats. He consulted Philips, AT&T, and Sony to name a few. He is the father of Core competence—a concept which finds its relevance everywhere, Bottom of Pyramid—once again a game changing concept to tap the market at the bottom level and many more modern management concepts. Unlike many other thinkers he was the one who firmly believed that globalization is actually bad for the poor of the world.

Rest in peace Prahalad Sir…May the almighty give all the strength to the family of Prahalad sir to see through this crisis.

The Indian 'Sponsors and Controversies' League

This is the time. The semifinals of the Indian Premier League (IPL) are nearing. When I write this the four teams for the semifinals are not decided yet…but one thing is decided that the IPL cannot come out of controversy so easily in the future. Such is the situation or I should say such is the interests of the stakeholders that finally the government decided to step in. I decided this can be a hot issue to discuss. And why not when the stakes are so high and we are just mere cricket-crazy fanatics following the ruckus…which is to be described in a single word as “consumerism”, at its very best.

The league has created a niche for itself—be it commanding astronomical rates for an advertisement in a ten second slot or becoming the “manoranjan ka baap” for the Indian TV audiences or for that matter creating innovative ways to plug in more advertisements and breaks during a cricket match. Such is its influence that global giants like Vodafone have a featured advertising scheme for the IPL. The idea and initiative taken by Vodafone is noble—that to have a new advertisement featured during every match involving the zoozoos is brilliant per se. But what is the gross outcome? And how long can this cacophony sustain itself? Oh I forgot that one important hypothesis—Indian markets can absorb anything. I agree that the sponsors are spending a lot of money. Come on…they have the money, which is the reason why they are the sponsors. But in lieu of sponsorship you cannot just make a game an arena to showcase non-sense. I mean what is the use of commentators yelling “a Citi Moment of success” every time when a batsman hits a six or “a Karbon Kamal catch” when a fielder takes a catch. Doesn’t it sound repetitive and boring…Had it been a great shot or a great catch and had the commentator said so is quite justifiable…but when the ball touches the edge and flies past the keeper for a six what is the use of “a Citi Moment of success”? It not only kills the game but also kills the traditional style of commenting in a cricket match. Gone are the days when we had absolute brilliant commentary and commentators like the legendary Richie Benaud or Tony Greig or Barry Richards to name a few. Then there is the “MRF BLIP” flying high in the sky glorifying MRF and its association with cricket in India. Does it make sense to showcase the blip and the commentators be asked to rave about it?

As if all that was not enough, now there is the much needed twist in the latest controversy. Things were going smoothly for the IPL…the teams were making money, Lalit Modi (the IPL commissioner) was hogging the limelight everywhere he went and everything he did, the teams were competitive as well and the participants were minting money. But then the nemesis—the controversy…and is threatening to kill the tournament itself. Like always the Indian government now will involve itself and will bail out or should I say pull the IPL out of this muck. This actually sounds the death knell for cricket as a game. Instead of going global cricket is shrinking itself day by day. Look around the other popular leagues around the world in any other sport…the MLS in the USA, the English Premier League or the Spanish League…they all are so well managed. They neither have the cap on foreign players representing a team. That is the reason why they are truly global and not just followed locally but across the planet. I mean how many of us care to know follow about the I-league…the league of Indian Football Clubs? But I am sure there are thousands who actually follow the English Premier League. The IPL as a brand is very big, but unless it is managed well and unless some of the stupid restrictions are removed how can it call itself a global brand? How can it go shoulder to shoulder with the likes of the English Premier League or the MLS? Stakes are even higher there in the MLS or the English Premier League, but that does not pose a threat to the game. But all the hype and hoopla associated with the IPL and the controversies actually is posing a very big threat to the game of cricket. Unless something is done seriously to manage the things, the IPL will die and with it the game of cricket too. Come on BCCI, don’t just enjoy the scenic beauty of Dharamshala (the BCCI governing body is scheduled to meet at Dharamshala for a high profile discussion on the IPL), but break the stranglehold of petty politics and sponsors; and come out of the niche.

Open the door to Bob

Next time the door is knocked be careful. Take a look and then open the door. Who knows you may have Bob as your guest. Not that Bob wants to exploit the traditional munificent Indian hospitality, but he wants something else. That ‘something’ is really very important for a monster; don’t get scared. The monster in discussion is in business parlance. Makes sense? Okay let me explain the person Bob Mc Donald is the diminutive global head of the FMCG monster Procter & Gamble aka P&G. Bob McDonald is on a visit to various households across India to gauge the perception of these householders about P&G products. So if you are a user of Tide detergent powder or Head and Shoulders shampoo don’t be surprised to open the doors to a strange looking foreigner—he is none other but Bob.

I should say this is a brilliant idea-- an idea which can do wonders for P&G. Indian FMCG segment is nearly a 5000 crore segment and gaining confidence of Indian consumers is no mean task. Specially, in times where customer loyalty is a thing of past and companies are having a tough time to woo customers. Another aspect of this brilliant idea is that instead of just spending on advertisements the company is actually trying to find out how important it is for a customer to have a right kind of product which should match just the customer’s requirement. When the biggest rival Hindustan Unilever is busy making advertisements which not only just makes a caricature of P&G but also wins GRP, P&G’s act is not just a stroke of brilliance but also a great strategy.

Strategically speaking it actually takes care of three very important things of marketing—product, price and promotion. A FMCG company sells mundane products, products which are seemingly trivial but are of great importance in our daily lives. So there is the big question—should every other company go brouhaha over a great product or its only just about promotion? A great product can only be ensured when the company tries to find out what exactly the customers want, what is their perception about the company’s brands, do they actually relate to the brand. This relation is very important. If you can relate to the toothpaste with which you brush your teeth every day, in whatsoever way, be it feeling fresher or getting whiter teeth, I bet you will have a yearning for the product however trivial it is.

Price is the most important factor in the Indian market. To understand the price points you need to understand the consumers better. And needless to say Bob’s visit will ensure that price points better understood in times when inflation is sky high. Today the consumers also understand how difficult it is for the companies to maintain a price point when the input costs have become so high. Finally, as far as the promotion goes…do I have to write anything? The unwritten part is always better understood…

N.B.: I appologise for the use of Jargons like FMCG and GRP. FMCG stands for Fast Moving Consumer Goods. These goods are the goods which are bought regularly from a retailer. So the retailer needs to update the stocks regularly and the goods move very fast from their shelves. Goods like toothpaste, detergents, toilet soap and a plethora of other goods as well fall under this category. While GRP stands for Gross Rating Points. It measures the success of an advertising campaign.