CRM and creativity
Customer Relationship Management calls for some smart thinking in order to be effective, says this expert.
“When compared to about twenty years ago, people have more choice and every company knows it can’t take customers for granted.”
Naga Subramanian Chokkanathan
D. Murali
A. Paari
Nokia, Charlie Chaplin, Google, Azim Premji, Annadurai, Sachin Tendulkar, Shakespeare, Dhirubhai Ambani, Walt Disney, Bill Gates, Rahul Dravid, space journey, Narayana Murthy, how television works, Lakshmi Mittal, and vitamins.
The common thread for all these is that Naga Subramanian Chokkanathan, director of education and innovation in Bangalore-based CRMIT ( www.crmit.com), has authored a book in Tamil on each.
“I feel that knowledge sharing can become easier and more transparent if domain experts begin to write their experiences and insights in a way that is understandable to the common reader and children,” he says, during a recent lunch-hour interaction with eWorld. “This is what I am doing consciously, in my books with IT (information technology) and computers background, and I wish people from other fields also bring such a fulfilling reading experience for me and others.”
CRMIT delivers CRM (customer relationship management) ‘on demand solutions’ and works in areas such as CRM portals, service oriented architecture (SOA), and mobile CRM.
Excerpts from the interview.
How do you see CRM evolving in India, and in what ways are the trends here different from what is found elsewhere?
CRM is something that is not restricted to any country or culture. Wherever customers are there, businesses cannot afford to keep them unhappy; and that is where CRM comes in as a strong requirement.
In India, the trend is positive. When compared to about twenty years ago, people have more choice and every company knows it can’t take customers for granted. May be the movement is slow, but we see a steady progress towards an increased focus on the customer, rather than merely on the products and price.
Recently, I was thrilled to notice concepts like loyalty programmes adopted even by our grocery chains. Earlier, loyalty was taken for granted if good products and services were provided. But now, that is no longer the case, and companies are trying hard to win the customer’s heart, not just his pocket. In the process, both the customers and CRM are getting the attention they deserve.
With Indian businesses keen to try out innovative strategies for attracting customers, in what ways can CRM help them?
CRM can help businesses in many ways. To start, when somebody calls you or drops in at your office, do you know everything about him or her? That can be a good beginning, and knowing fully about a customer (or a prospect) is something that is always going to help us in suggesting products of interest to them.
Next, the services area. Many great Indian companies are known to be poor in providing support. Here again CRM concepts and tools can help.
Modern Indian businesses are definitely keen on implementing CRM concepts in their day-to-day operations. For example, a bank started providing ‘Gold’, ‘Silver’ cards to its valued customers, and depending on their status the customers get faster services and better rates. The customers were happy, and the bank spent time with the right customers, prioritising well, and proposing things that are more likely to be accepted by the target audience.
Are there ways to measure the benefits of CRM for enterprises?
CRM success metrics differ for each industry. The most common ways of measuring CRM success are: increase in the number of leads, for a sales organisation; and the average time spent on each call, in a service organisation.
In our organisation, when we went with our own CRM implementation, we saw an immediate improvement of 25 per cent increase in the number of leads that got converted to orders.
Though each organisation has its own way of measuring CRM effectiveness, in general, organisations feel there is a definite value-add from CRM in the long term. According to Harvard Business School study, ‘Companies that put customers in the centre are 6X more likely to achieve growth goals.’ And CRM is a great tool to make that happen.
What are the popular myths about CRM?
First of all, many people assume that CRM means a software package. You buy it paying huge chunks of money, and then it takes care of your business. That’s all!
Unfortunately, life is not a ‘Harry Potter’ novel. Here we have to do the work, and software is just a tool, to support us.
CRM is more a business concept, and it is left to our creativity how we want to use it. You don’t need fancy software to support your CRM efforts, even though one such software would definitely help doing things faster.
For example, recently, I was in a pani puri stall that was very crowded. I was a little worried whether I was going to get my turn, or simply return hungry. At that time, the vendor just looked into my face and asked, ‘Hello sir, what do you want?’
I gave him my order, and he said okay. But, all this time, he was busy working on somebody else’s order. Whatever I had asked for took almost 10 minutes to come. But, I was no longer worried about waiting, because he had given me an impression that things are moving. Later, I observed that he was doing so for almost every new customer. Interestingly, nobody did mind waiting, after that small trick.
Now, this pani puri vendor doesn’t have any CRM software, but still he is able to apply its concepts in his daily work. That is the power of creative CRM, and there are endless possibilities of what you can do with it.
The second popular CRM myth is that all CRM implementations are costly and they take a long time. Only companies with deep pockets can afford to go for CRM implementations.
May be this was true a few years earlier. Now, CRM is slowly making headway for SMEs (small and medium enterprises). This is a positive trend we are seeing in the last few years, and expect this will be of interest even to big enterprises, to save their overall cost of CRM implementation.
What are the CRM takeaways for SMEs?
SaaS (Software as a Service) is a big trend now. We specialise in SaaS-based CRM solutions, both in our products and services. What SaaS is doing is to bring CRM to the masses, and the SMEs.
People who believe in CRM’s power, but can’t (or don’t want to) spend a whole lot of money immediately on that, can start by subscribing to CRM services, which are available for as low as Rs 250 per month, per user.
These provide a good start. You can use them and see the value. Once you like it, or when ready for the next level, you can move to the more advanced services, or even a hosted solution.
For example, some educational institutions in the US and Europe are now using CRM to track their current and potential students. They start with simple things, such as course registration, and slowly increase their CRM bandwidth.
This model is perfect for India, owing to the economics. SaaS provides companies with the luxury of sampling at a relatively low cost. The CRM solution can, accordingly, grow with the company.
How big is CRM as business potential? And, do we have the relevant education in biz schools? What can make CRM more widespread in use?
CRM as a business is worth about Rs 15,000 crore. But this is a kind of unclear number because it includes CRM products and services in the traditional sense, and also the related IT enabled services.
Big players in CRM such as Oracle are very enthusiastic about CRM’s growth potential. Almost every major corporation is introducing its own CRM version, to get a part of the CRM pie. And the latest on the bandwagon is the biggest one, Microsoft, actively promoting the ‘Microsoft Dynamic CRM’.
In general, the CRM market is buzzing with activity. Market leaders like Siebel and SalesForce.com are still strong, despite tough competition from new players.
Industry interest reflects in the media’s coverage of customer relationship topics. Business schools are gearing-up to teach CRM basics to the next-generation professionals. Because of huge CRM implementations, and their direct effect on the business, end customers are also becoming aware of the change, and have started expecting more.
What are the issues that CRM has to overcome?
One major question, or point of resistance, is whether CRM is intruding into people’s privacy.
The other day, I was making a phone call to an electronic store. A guy picked it and said, ‘Hello sir, you are so-an-so, you purchased a washing machine from us nine months back, model such-and-such. Now, what can we do for you?’
This, right at the start of conversation, took me aback. I know a CRM tool can match my phone number with their records and flash all the details on the monitor, and one can just read out from the screen. But still, the feeling that somebody is watching me is scary, to put it mildly.
Such problems can occur when you go too aggressive on CRM. The challenge is to find the right balance, and work in such a way that the customer is happy with the service, as well as the way we manage the relationship.
About CRMIT, its work, size and growth over the years. Your role in it. Also future plans.
CRMIT started its operations four years ago, as a small team of three members. From there, we have grown to the current team size of 70 plus, with a focused effort in the field of CRM using our team’s strong business understanding, and creativity. We work with CRM experts in Oracle, and strive to provide CRM-based end-to-end services to our customers.
I started working here as a co-founder, consultant, then moved to the role of architect, and currently I am taking care of education and innovation teams. These two areas are what we feel are going to determine the growth rate at which we can move. So we would like to concentrate on continuous learning, being in the leading technology domains, and more important than all, being creative and useful.
What are your products and services? Are you currently working on any new products/services?
Our innovation team continuously works on brining CRM-related new products, and our brand CRM++ has more than ten products till date; the list is growing.
Our intention is to develop various market-driven products, using the latest technologies. At the same time, our concentration is on filling the business gap, instead of just showing-off technical expertise.
On that front, we are very proud about one of our recent releases, mCRM. Meaning, mobile CRM, it provides access to CRM data for mobile users. This can be used by any industry where people are on the move. That means, all industries.
Here is a scenario. You are reporting a problem about broadband connection in your home, and the service ticket is received by an engineer, who happens to be in the next street. He is able to look at your problem on mobile. Then, he visits you in the next five minutes and the issue is resolved. We feel mCRM can take customer relationships to that next level, where both the end customers and the companies get benefited.
Any success stories of your implementation.
Let me narrate a few. SolidWorks Corporation of the US, a leader in 3D CAD technology solutions, has its software used by over half a million product designers and engineers worldwide to design better products. We did a CRM implementation for the company, helping it automate the way it handled campaigns, accepted leads, assigned them to value added resellers and tracked the complete lifecycle. This whole process is now automated using CRM, which gives better experience to customers, partners and SolidWorks internal staff.
Godrej Industries Ltd is another example. Our CRM implementation for Godrej helped it reach out to the customers, with end-to-end sales support. This included collaborative fulfilment schedules, real time access to business data and increasing the speed of information flow.
When Vodafone (previously Hutch) wanted to improve its bill presentment portal, to provide a more personalised experience for end users, we were part of the implementation that added many advanced features to the traditional way of monthly mobile service bills, while at the same time saving cost on customer interactions.
In addition, we have done different product- and service-based CRM implementations, and also provided educational services to General Motors (GMAC), GE Fleet, 3M, IBM, Accenture and Oracle.
On your second-life as a writer — its trigger, the benefits and insights.
Like many, I started writing because I read some great literature in my school days. Not out of my own interest, though. My aunt, who was blind, introduced me to many good books, and asked me to read them out for her. That was the main reason I was with books, when most of my friends were busy playing cricket on the street.
Of course, I played my fair share of cricket, but the reading habit is something that stuck with me, and I started writing a few ‘detective’ stories. Fortunately, none of those stories made it to the printing machine.
After I matured both as a reader and as a writer, my first short story was published in 1997, and that motivated me to write more, resulting in a short story collection few years later.
Later, I got into a feverish mode of writing non-fiction, after a publication house asked me to write a book about my favourite cricketer Sachin Tendulkar. That triggered my interest in non-fiction, which made the whole difference.
After that first book, I have written biographies, business histories, political histories, and books for children, under the name N. Chokkan.
I am thrilled to find that non-fiction readers too like a simple and effective narrative style, and I am keeping that as my focus. At the same time I try to bring my work and business experience into my works, as a background, wherever relevant.
Naga, a graduate in production engineering from Bharathiyar University, Coimbatore, holds a master diploma in business administration from Symbiosis University, Pune. Before co-founding CRMIT he worked in various development and consulting positions with Baan Info Systems, BroadVision India and Infact Infotech India. As a trainer, Naga has delivered more than 50 educational engagements and corporate training in various technologies, for organisations including IBM, Accenture, Oracle, BEA Systems, Infosys, Wipro, TCS, Cognizant, and Tech Mahindra.
Monday, January 28, 2008
Thursday, January 24, 2008
IPL bid
Mukesh wins Mumbai IPL team for $111.9mn
Press Trust of India / Mumbai January 24, 2008
Mukesh Ambani has won the bid to sponsor the Mumbai team of the Indian Professional League (IPL) tournament promoted by the Board of Control for Cricket in India (BCCI).
Mukesh Ambani won the bid for the Mumbai team for $111.9 million.
Following are the bid amounts and winners for various teams in the Indian Premier League:
Vijay Mallya won the bid for the Bangalore team for $111.6 million.
Shah Rukh Khan won the bid for the Kolkata team for $75.09 million.
GMR Holdings won the bid for the Delhi team for $84 million.
India Cements won the bid for the Chennai team for $91 million.
Deccan Chronicle won the bid for the Hyderabad team for $107.01 million.
Emerging Media won the bid for the Jaipur team for $67 million.
Preity Zinta won the bid for the Mohali team for $76 million.
Press Trust of India / Mumbai January 24, 2008
Mukesh Ambani has won the bid to sponsor the Mumbai team of the Indian Professional League (IPL) tournament promoted by the Board of Control for Cricket in India (BCCI).
Mukesh Ambani won the bid for the Mumbai team for $111.9 million.
Following are the bid amounts and winners for various teams in the Indian Premier League:
Vijay Mallya won the bid for the Bangalore team for $111.6 million.
Shah Rukh Khan won the bid for the Kolkata team for $75.09 million.
GMR Holdings won the bid for the Delhi team for $84 million.
India Cements won the bid for the Chennai team for $91 million.
Deccan Chronicle won the bid for the Hyderabad team for $107.01 million.
Emerging Media won the bid for the Jaipur team for $67 million.
Preity Zinta won the bid for the Mohali team for $76 million.
Tuesday, January 22, 2008
Tata Sky bets big on interactive services
Coimbatore, Jan. 21 Direct-to-Home satellite service provider Tata Sky has launched a number of innovative and interactive services, targeting every age group.
Its Chief Marketing Officer, Mr Vikram Mehra, told Business Line: “we have proved that the television is no longer an idiot box but a wholesome family entertainer with interactive services for everyone. We have made TV an active medium rather than a passive one.”
The suite of interactive services include education for kids and school-going children in the 7 to 11 age group, gaming, quiz, astrology, cookery and lots more.
Elaborating on some of the interactive services offered by the company, he said “we have introduced some services for children such as Actve Stories, Actve Learning and Actve Wizkids. These have received phenomenal response.’
Actve Stories is a story-based service where children can read the stories such as Birbal and Panchatantra at their own pace (in English and Hindi) and stories are changed everyday. For Actve Learning, an education-based service targeted at kids in the 7 – 11 age bracket, Tata Sky has tied up with 24x7 Guru.com for content and application.
ActveWizkids has been in the market for almost a year now. The service is aimed at supplementing a child’s classroom education through educational games. Top three schools in the country have installed this in their schools, Mr Mehra said, but declined to divulge the names of the institutions where it has been installed. “In the education space, such services are proving to be successful. We have a 60-member research team in Bangalore working on all these tools,” he said.
For the astrology service, Tata Sky has partnered with Ganesha Speaks and for the cooking service with NDTV.
Its Chief Marketing Officer, Mr Vikram Mehra, told Business Line: “we have proved that the television is no longer an idiot box but a wholesome family entertainer with interactive services for everyone. We have made TV an active medium rather than a passive one.”
The suite of interactive services include education for kids and school-going children in the 7 to 11 age group, gaming, quiz, astrology, cookery and lots more.
Elaborating on some of the interactive services offered by the company, he said “we have introduced some services for children such as Actve Stories, Actve Learning and Actve Wizkids. These have received phenomenal response.’
Actve Stories is a story-based service where children can read the stories such as Birbal and Panchatantra at their own pace (in English and Hindi) and stories are changed everyday. For Actve Learning, an education-based service targeted at kids in the 7 – 11 age bracket, Tata Sky has tied up with 24x7 Guru.com for content and application.
ActveWizkids has been in the market for almost a year now. The service is aimed at supplementing a child’s classroom education through educational games. Top three schools in the country have installed this in their schools, Mr Mehra said, but declined to divulge the names of the institutions where it has been installed. “In the education space, such services are proving to be successful. We have a 60-member research team in Bangalore working on all these tools,” he said.
For the astrology service, Tata Sky has partnered with Ganesha Speaks and for the cooking service with NDTV.
Thursday, January 17, 2008
Live life ‘King Khan’ size!!!
How SRK, the superstar lives in the shadow of Brand SRK
What is common between Pepsi, Hyundai, Sunfeast, Lux, Compaq, Emami, Airtel, Videocon, Dish TV? Well they surely don’t fall under the same category, nor do they share the same brand values. Then what is that one thing binding all the above brands. A ‘King’! But not just any king, we’re talking about the ‘King of Bollywood’. He’s done it all. He is a man who always hits the box office with his impeccable energy and talent, who has changed the whole outlook of the national sport of India, a man who added the oomph factor in the third series of most popular game show on Indian television, a man who is undoubtedly the Badshah of the Indian Film Industry – Shah Rukh Khan.
Bollywood’s ‘King Khan’ is the ultimate epitome of entertainment and has reinvented himself a million times. SRK as a brand is enormous; his charisma is magnificent and at times even magical. Whatever SRK does, it’s larger than life. At the age of 42 Shahrukh khan has once again become the talk of the town with his six packs and pony-tailed hair. Film critic Taran Adarsh says, “Look at the determination in him that he can do this at the age of 42.”
But at this age he has finally become larger-than-life. He thinks that he can endorse any brand, even a Sona Chandi. He’s becoming like Big B, who is the ambassador for any and every brand. Meet the new SRK, who feels he can sell any product.
No wonder from cars to biscuits, to hair oil, to banks, to soap and even fairness cream, all want to associate with him. States Arun Kumar Kapoor, CEO, Dish TV, “We’re in the entertainment business, with a technology product. We’re a vibrant young brand, but geekish at the same time. The guy who fitted the best in this was Shah Rukh Khan He embodies the brand personality of Dish TV & embodies the values this brand stands for.”
With the entry of brat packs like Hrithik and Abhishek, critics had literally written off Khan, but they are now eating humble pie after the super-duper success of first Chak De! India and now Om Shanti Om (OSO). Clearly the Badshah is back with a bang! Undoubtedly, in the ad world SRK takes home the fattest pay package. Rumour tongues wag that Khan rakes in close to Rs.100 crore annually in endorsements alone. And why not? When SRK endorsed the family car Santro in 1998, the sales of the Korean car shot up like anything.
The company is now hoping that the man with the midas touch does it again for Hyundai’s i10 brand, after all one can see the sorry state of Hyundai’s Getz and Elantra, which the star did not endorse. When 4Ps B&M caught up with Santosh Desai, MD & CEO, Future Brands, he opines, “He (SRK) has a charismatic star quality that he gives to all brands. He is able to get everyone to relate to him and suddenly at the same time he gets larger than life. He can empathise with the brand and also get the star power at the same time.” After all, who can forget, SRK lounging in a bath tub, with Bollywood beauties, and with his great élan giving ‘them’ a run for their money. And it seems that his clientele for endorsements is increasing, what with the news of SRK signing endorsement deals with Jet Airways & Essel group doing the rounds.
He is truly the harbinger of entertainment in India and globally. With plenty of shows abroad, the paparazzi in US & UK have put him on the same pedestal as Tom Cruise or Brad Pitt. Incidentally in the UK box office, with only 52 prints and a collection of half million pounds, the SRK starrer OSO has handsomely beaten Tom Cruise’s latest flick, Lions for Lambs, which could only muster 400,000 pounds from its 404 prints released.
Film critic Taran Adarsh says, “SRK bring to all brands his endless energy and the positive vibes. SRK makes watching all ads a delight.” However, some factions feel that by endorsing all that comes his way, SRK might be diluting his veritable brand image. “It does affect him and the brands. For instance, there is nothing that Sona Chandi Chyawaprash would take back from SRK. There should be the stature and the script should bring it out. Like Akshay has been doing comedy films but Thums Up put him back as the action star and that has impacted his value,” avers K. V. Sridhar, National Creative Director, Leo Burnett, India.
Incidentally, SRK’s absence in endorsing for social causes has become quite noticeable. In 2007, Big B topped the list, with 65% of such endorsements on TV. Juhi Chawla bagged the second spot with 18% and John Abraham stood at the third spot with 4%, but the prominent exclusion from the list was that of King Khan.
In fact it was supposed to be a grand battle between Big B and SRK. However, today’s youth identifies with SRK, as they have grown up watching his films. It’s a battle between two big wigs, between Rahul and Vijay. Or shall we say a battle between Belmonte and Reid & Taylor.
What is common between Pepsi, Hyundai, Sunfeast, Lux, Compaq, Emami, Airtel, Videocon, Dish TV? Well they surely don’t fall under the same category, nor do they share the same brand values. Then what is that one thing binding all the above brands. A ‘King’! But not just any king, we’re talking about the ‘King of Bollywood’. He’s done it all. He is a man who always hits the box office with his impeccable energy and talent, who has changed the whole outlook of the national sport of India, a man who added the oomph factor in the third series of most popular game show on Indian television, a man who is undoubtedly the Badshah of the Indian Film Industry – Shah Rukh Khan.
Bollywood’s ‘King Khan’ is the ultimate epitome of entertainment and has reinvented himself a million times. SRK as a brand is enormous; his charisma is magnificent and at times even magical. Whatever SRK does, it’s larger than life. At the age of 42 Shahrukh khan has once again become the talk of the town with his six packs and pony-tailed hair. Film critic Taran Adarsh says, “Look at the determination in him that he can do this at the age of 42.”
But at this age he has finally become larger-than-life. He thinks that he can endorse any brand, even a Sona Chandi. He’s becoming like Big B, who is the ambassador for any and every brand. Meet the new SRK, who feels he can sell any product.
No wonder from cars to biscuits, to hair oil, to banks, to soap and even fairness cream, all want to associate with him. States Arun Kumar Kapoor, CEO, Dish TV, “We’re in the entertainment business, with a technology product. We’re a vibrant young brand, but geekish at the same time. The guy who fitted the best in this was Shah Rukh Khan He embodies the brand personality of Dish TV & embodies the values this brand stands for.”
With the entry of brat packs like Hrithik and Abhishek, critics had literally written off Khan, but they are now eating humble pie after the super-duper success of first Chak De! India and now Om Shanti Om (OSO). Clearly the Badshah is back with a bang! Undoubtedly, in the ad world SRK takes home the fattest pay package. Rumour tongues wag that Khan rakes in close to Rs.100 crore annually in endorsements alone. And why not? When SRK endorsed the family car Santro in 1998, the sales of the Korean car shot up like anything.
The company is now hoping that the man with the midas touch does it again for Hyundai’s i10 brand, after all one can see the sorry state of Hyundai’s Getz and Elantra, which the star did not endorse. When 4Ps B&M caught up with Santosh Desai, MD & CEO, Future Brands, he opines, “He (SRK) has a charismatic star quality that he gives to all brands. He is able to get everyone to relate to him and suddenly at the same time he gets larger than life. He can empathise with the brand and also get the star power at the same time.” After all, who can forget, SRK lounging in a bath tub, with Bollywood beauties, and with his great élan giving ‘them’ a run for their money. And it seems that his clientele for endorsements is increasing, what with the news of SRK signing endorsement deals with Jet Airways & Essel group doing the rounds.
He is truly the harbinger of entertainment in India and globally. With plenty of shows abroad, the paparazzi in US & UK have put him on the same pedestal as Tom Cruise or Brad Pitt. Incidentally in the UK box office, with only 52 prints and a collection of half million pounds, the SRK starrer OSO has handsomely beaten Tom Cruise’s latest flick, Lions for Lambs, which could only muster 400,000 pounds from its 404 prints released.
Film critic Taran Adarsh says, “SRK bring to all brands his endless energy and the positive vibes. SRK makes watching all ads a delight.” However, some factions feel that by endorsing all that comes his way, SRK might be diluting his veritable brand image. “It does affect him and the brands. For instance, there is nothing that Sona Chandi Chyawaprash would take back from SRK. There should be the stature and the script should bring it out. Like Akshay has been doing comedy films but Thums Up put him back as the action star and that has impacted his value,” avers K. V. Sridhar, National Creative Director, Leo Burnett, India.
Incidentally, SRK’s absence in endorsing for social causes has become quite noticeable. In 2007, Big B topped the list, with 65% of such endorsements on TV. Juhi Chawla bagged the second spot with 18% and John Abraham stood at the third spot with 4%, but the prominent exclusion from the list was that of King Khan.
In fact it was supposed to be a grand battle between Big B and SRK. However, today’s youth identifies with SRK, as they have grown up watching his films. It’s a battle between two big wigs, between Rahul and Vijay. Or shall we say a battle between Belmonte and Reid & Taylor.
Branding
See, touch, feel...
Do customers engage whole-heartedly in your brand? If yes, you may still be able to make it
What is the most critical trait that world famous brands like Google, Wal-Mart, Pepsi, Starbucks, Microsoft, Nestlé and Nike have in common? Perhaps the fact that almost anything they do (or don’t) makes headlines and trigger mass reaction. These companies do not always seek the publicity they get, whether for good or for bad. That is precisely why, although a number of firms around the world mistreat their employees for unfair gains, Wal-Mart gets the most flak for not giving free lunch hours in its organisation. Similarly, there would be a number of organisations that are miles away from confirming to quality standards and need to be severely penalised, but it’s Pepsi and Cadbury that are targettted en masse. On positive side, of course, is the fact that these brands enjoy mass adulation and appeal, which are highly enviable assets. It’s almost as if customers have been involved with these brands throughout their evolution. That’s why Coca-Cola faced huge protests over changing the taste of its cola in 1980s. Even though the new drink was researched by the company as having ‘better taste’, customers wanted their original Coke and nothing else. No wonder Coca-Cola is consistently on the top of the roster of the world’s leading brands.
To attain such high levels of involvement in your brands is getting increasingly difficult and more complex with the sheer explosion of media channels and competitors. Your brand needs to constantly reinforce your core positioning in the eyes of the customer. An interesting example is HDFC, which has emerged a leader in the home-loan segment in India. As the home-loan business was blooming in the late 1990s, the challenge was to acquire and retain customers who often questioned the authenticity of services promised by the banks. HDFC decided upon a unique way to commence its activities way back in 1977 by offering ‘home’ grown solutions for its customers. Keki Mistry, MD, HDFC, while speaking exclusively to 4Ps B&M on HDFC’s customer-centric focus, stated, “They (the customers) want comfort from us that we have checked the property, since we know the credentials of most of the developers and whether the title is clear. We often tell people when to buy and when not to buy.” In this way, HDFC partnered with the customers and helped allay their key concerns, thereby securing their trust.
Diageo, a premium drinks company that boasts of prominent brands such as Smirnoff, Johnnie Walker, Baileys, Captain Morgan and Guinness, has endeavoured over time to involve the customer in each of its brands through its initiative, Smirnoff Experience, which has made waves for past half a decade in over 20 countries by creating truly out-of-the-world events. Smirnoff Tastemaker Sessions encourage the customers to learn the basics of bartending. Smirnoff Bar 21 is a mobile bar with signature cocktails from Smirnoff like Smirnoff Rasam & Thandai, specifically for Indian tastes. Smirnoff Bar 21 also brings various international and national artists, thereby providing an international club culture. Mentoring sessions are organised by Johnnie Walker, which give an opportunity to understand the subtleties of the Johnnie Walker blend. The company realises that consumers want to be equipped with knowledge around scotch to make informed purchases. Besides, Diageo has also done its bit for social causes. Joseph Luppino, Senior Director, State Government Relations, Diageo North America, categorically states “...we do not want the business of anyone under the legal drinking age. Period.”
Idea is organising a tour across 11 cities ‘Idea Rocks India’ with Sunidhi Chauhan, Raghav and Laughter Challenge champion Navin Prabhakar. As is the norm, only Idea customers will be able to access clips, wallpapers, ringtones et al of this concert after the shows are over. The company claims that their business increased by 10% after the Idea Rocks India tour last year. Pradeep Srivastava, Chief Marketing Officer, Idea Cellular, states, “The emotional connect we develop with our existing and potential customers is the biggest ROI.
Do customers engage whole-heartedly in your brand? If yes, you may still be able to make it
What is the most critical trait that world famous brands like Google, Wal-Mart, Pepsi, Starbucks, Microsoft, Nestlé and Nike have in common? Perhaps the fact that almost anything they do (or don’t) makes headlines and trigger mass reaction. These companies do not always seek the publicity they get, whether for good or for bad. That is precisely why, although a number of firms around the world mistreat their employees for unfair gains, Wal-Mart gets the most flak for not giving free lunch hours in its organisation. Similarly, there would be a number of organisations that are miles away from confirming to quality standards and need to be severely penalised, but it’s Pepsi and Cadbury that are targettted en masse. On positive side, of course, is the fact that these brands enjoy mass adulation and appeal, which are highly enviable assets. It’s almost as if customers have been involved with these brands throughout their evolution. That’s why Coca-Cola faced huge protests over changing the taste of its cola in 1980s. Even though the new drink was researched by the company as having ‘better taste’, customers wanted their original Coke and nothing else. No wonder Coca-Cola is consistently on the top of the roster of the world’s leading brands.
To attain such high levels of involvement in your brands is getting increasingly difficult and more complex with the sheer explosion of media channels and competitors. Your brand needs to constantly reinforce your core positioning in the eyes of the customer. An interesting example is HDFC, which has emerged a leader in the home-loan segment in India. As the home-loan business was blooming in the late 1990s, the challenge was to acquire and retain customers who often questioned the authenticity of services promised by the banks. HDFC decided upon a unique way to commence its activities way back in 1977 by offering ‘home’ grown solutions for its customers. Keki Mistry, MD, HDFC, while speaking exclusively to 4Ps B&M on HDFC’s customer-centric focus, stated, “They (the customers) want comfort from us that we have checked the property, since we know the credentials of most of the developers and whether the title is clear. We often tell people when to buy and when not to buy.” In this way, HDFC partnered with the customers and helped allay their key concerns, thereby securing their trust.
Diageo, a premium drinks company that boasts of prominent brands such as Smirnoff, Johnnie Walker, Baileys, Captain Morgan and Guinness, has endeavoured over time to involve the customer in each of its brands through its initiative, Smirnoff Experience, which has made waves for past half a decade in over 20 countries by creating truly out-of-the-world events. Smirnoff Tastemaker Sessions encourage the customers to learn the basics of bartending. Smirnoff Bar 21 is a mobile bar with signature cocktails from Smirnoff like Smirnoff Rasam & Thandai, specifically for Indian tastes. Smirnoff Bar 21 also brings various international and national artists, thereby providing an international club culture. Mentoring sessions are organised by Johnnie Walker, which give an opportunity to understand the subtleties of the Johnnie Walker blend. The company realises that consumers want to be equipped with knowledge around scotch to make informed purchases. Besides, Diageo has also done its bit for social causes. Joseph Luppino, Senior Director, State Government Relations, Diageo North America, categorically states “...we do not want the business of anyone under the legal drinking age. Period.”
Idea is organising a tour across 11 cities ‘Idea Rocks India’ with Sunidhi Chauhan, Raghav and Laughter Challenge champion Navin Prabhakar. As is the norm, only Idea customers will be able to access clips, wallpapers, ringtones et al of this concert after the shows are over. The company claims that their business increased by 10% after the Idea Rocks India tour last year. Pradeep Srivastava, Chief Marketing Officer, Idea Cellular, states, “The emotional connect we develop with our existing and potential customers is the biggest ROI.
Outsourced design: British firm Astound worked on Reliance Fresh stores
The business of design
Indian businesses are looking outwards for design, and the Europeans are only too happy to oblige
Europe has designs on India. And quite literally too. As designers from Europe look at the Indian market keenly for work, India is slowly lapping them up. And do not mistake designing for fashion designing alone. We are talking of design for the much talked about, hyped about sector - retail!
Driven by the lack of adequate design talent in India, the country has been forced to look yonder. While the number of designers in India is woefully inadequate, the scene is just the reverse in Europe - where there is huge supply and very little work.
Just sample this. Bangalore-based Idiom Design and Consulting a few months ago employed about six designers on a “time-bound” “contract basis” from France and Poland to work on its various projects. It is open to employing European designers again in future too. In fact, it is in “evaluating” opening offices in West Asia, the Far East, Europe and America soon.
While Titan’s design studio does not employ any designers from abroad, it does work with some Swiss and French designers. Design firms such as JHP, Astound and Fitch have also worked on Indian retail projects. London-based JHP has designed the retail stores of some of Arvind Group’s brands, while British design firm Astound has worked on Reliance Fresh stores. Fitch works with the Aditya Birla group on its ‘more’ stores. This is only the tip of the iceberg - the reverse outsourcing story is set to grow if the demand-supply situation in India continues.
Says Girish Raj, Founder Member, Idiom Design and Consulting, “European designers love the fact that there is so much work in India. Also, there is an emerging market here compared to saturated markets in Europe … besides, like in every other industry, they think that sooner or later, there is money to be made for them in India.”
With retail set to expand its tentacles far and wide, the role of retail and product design has gained prominence. Retail design involves the whole umbrella of services from product packaging (designing SKUs, labelling and such), product design (how the product should look and feel in order to appeal to consumers, its features) to visual merchandising (this involves the store interiors, the furniture, the product visuals, hoardings and other in-store merchandising). Design services are also required in branding (creating the logo and other visual identities) – whether it’s brand makeovers such as Canara Bank or Vodafone or a mega event such as the Commonwealth Games.
A booming economy, a new aspirational India, a jet-setting young India - all these point to a greater inclination towards things that are trendy. Indian consumers no longer want to settle for tacky-looking but functional products. Function is still key, but it has to be backed by aesthetics and innovation as well.
With greater exposure to global trends and heightened sensitivity towards design, good design and aesthetics are growing in importance and retailers cannot afford to have a blinkered vision anymore.
“With money floating around, people are willing to spend. People have also started appreciating design more. Today, it’s not just about making a good-looking product. It’s about storytelling - people are not buying products or pieces. They are buying a story and an experience,” says Revathi Kant, Business Head - Design, Titan Industries.
Agrees Sujata Keshavan, Director, Ray + Keshavan, a brand and design consultancy firm, says, “For long, we blithely ignored design. We merely copied products. But now involvement in design has become an absolute must for retailers. They can ignore design at their own peril.”
All of this has suddenly revealed the pent-up demand for designers. While adequate skilled manpower is the need of the hour, for now the numbers just don’t seem to add up. According to an Indo-Dutch market survey by a Dutch delegation in August last year, India has about 3,000 practising designers, compared to one lakh designers in the EU.
Says Kant: “While around 1,000 people pass out of the top design institutes every year (from NID, NIFT and IIT), the industry’s demand is eight-fold,” she says. Titan’s design studio is open to the idea of recruiting designers from Europe in future, says Kant.
Raj of Idiom explains: “Idiom has in the past employed the services of designers from Europe … not for global involvement or understanding but because of lack of design talent in the country. There are just a handful of design schools. In fact, Idiom alone can absorb all the designers from every reputed design school every year.” The crunch is both in terms of numbers and skill, he adds.
Do we need more design schools? Says Keshavan: “Even China – known to be a mass producer and the cheapest manufacturer – has invested hugely in design. The Chinese government sends its designers to Italy and America and pays for their education so that they come back and set up design schools in China. China today has hundreds of design schools. In India, we just do not have enough design schools.”
But here again we are dealing with a double-edged sword. While we do need more quality people and design institutes, care must be taken to ensure the design industry does not meet the same fate as the animation industry has. While animation schools and quick courses have cropped up in every nook and corner, the quality leaves a lot to be desired, cautions Sonia Manchanda, Co-Founder, Idiom.
There are other challenges. Today it’s not about pure design alone. Besides an eye for colour and details, designers need to possess smart thinking to align the design elements with business strategies. Design has to meet the overall business objective. “Designers must be trained in strategic design thinking, design management and business designing,” says Manchanda. Are our design schools equipped to meet industry requirements? Concerns indeed!
Where Europe falls short
But amid the concerns and challenges lies our inherent advantage, that of cultural understanding. A good design is one which understands the cultural context well.
While it does definitely makes sense to “try out” European designers since there is an obvious interest from Europe and also considering that there are not many in India to choose from, a word of caution. European designers have limitations of lack of understanding of the Indian cultural context, besides reluctance to work in the “chaotic” environment that India provides.
Raj of Idiom puts things in perspective: “European designers find it traumatic when they have to deal with the ‘hyper-active’ and even chaotic Indian design support scenario. In fact, they have to be given a crash course on design in the Indian environment for them to be effective, here in India. European designers are accustomed to working in ’organised’ systems. They are ‘single’ assignment people and find it difficult to ‘multi-process’. The need of the hour in India is for designers to work on multiple design projects. International designers are by and large ‘specialists’…furniture, product, graphic etc. But we need specialists who are holistic. And all these issues have a bearing on how much you can charge your clients for employing international designers.”
So Indian designers do have the edge – that of Western education besides understanding the Indian environment! And as far as remuneration is concerned, it depends on whether you are a freelancer or with a firm. Says Idiom’s Manchanda: “If you are in a boutique firm - small in size doing small work for small business, the remuneration may be stagnant. But as the firm grows and becomes a large institution doing large projects, the remuneration certainly can look up.” It is certainly not a gloomy place to be in, she assures. Times are exciting, says Manchanda. Any takers?
Indian businesses are looking outwards for design, and the Europeans are only too happy to oblige
Europe has designs on India. And quite literally too. As designers from Europe look at the Indian market keenly for work, India is slowly lapping them up. And do not mistake designing for fashion designing alone. We are talking of design for the much talked about, hyped about sector - retail!
Driven by the lack of adequate design talent in India, the country has been forced to look yonder. While the number of designers in India is woefully inadequate, the scene is just the reverse in Europe - where there is huge supply and very little work.
Just sample this. Bangalore-based Idiom Design and Consulting a few months ago employed about six designers on a “time-bound” “contract basis” from France and Poland to work on its various projects. It is open to employing European designers again in future too. In fact, it is in “evaluating” opening offices in West Asia, the Far East, Europe and America soon.
While Titan’s design studio does not employ any designers from abroad, it does work with some Swiss and French designers. Design firms such as JHP, Astound and Fitch have also worked on Indian retail projects. London-based JHP has designed the retail stores of some of Arvind Group’s brands, while British design firm Astound has worked on Reliance Fresh stores. Fitch works with the Aditya Birla group on its ‘more’ stores. This is only the tip of the iceberg - the reverse outsourcing story is set to grow if the demand-supply situation in India continues.
Says Girish Raj, Founder Member, Idiom Design and Consulting, “European designers love the fact that there is so much work in India. Also, there is an emerging market here compared to saturated markets in Europe … besides, like in every other industry, they think that sooner or later, there is money to be made for them in India.”
With retail set to expand its tentacles far and wide, the role of retail and product design has gained prominence. Retail design involves the whole umbrella of services from product packaging (designing SKUs, labelling and such), product design (how the product should look and feel in order to appeal to consumers, its features) to visual merchandising (this involves the store interiors, the furniture, the product visuals, hoardings and other in-store merchandising). Design services are also required in branding (creating the logo and other visual identities) – whether it’s brand makeovers such as Canara Bank or Vodafone or a mega event such as the Commonwealth Games.
A booming economy, a new aspirational India, a jet-setting young India - all these point to a greater inclination towards things that are trendy. Indian consumers no longer want to settle for tacky-looking but functional products. Function is still key, but it has to be backed by aesthetics and innovation as well.
With greater exposure to global trends and heightened sensitivity towards design, good design and aesthetics are growing in importance and retailers cannot afford to have a blinkered vision anymore.
“With money floating around, people are willing to spend. People have also started appreciating design more. Today, it’s not just about making a good-looking product. It’s about storytelling - people are not buying products or pieces. They are buying a story and an experience,” says Revathi Kant, Business Head - Design, Titan Industries.
Agrees Sujata Keshavan, Director, Ray + Keshavan, a brand and design consultancy firm, says, “For long, we blithely ignored design. We merely copied products. But now involvement in design has become an absolute must for retailers. They can ignore design at their own peril.”
All of this has suddenly revealed the pent-up demand for designers. While adequate skilled manpower is the need of the hour, for now the numbers just don’t seem to add up. According to an Indo-Dutch market survey by a Dutch delegation in August last year, India has about 3,000 practising designers, compared to one lakh designers in the EU.
Says Kant: “While around 1,000 people pass out of the top design institutes every year (from NID, NIFT and IIT), the industry’s demand is eight-fold,” she says. Titan’s design studio is open to the idea of recruiting designers from Europe in future, says Kant.
Raj of Idiom explains: “Idiom has in the past employed the services of designers from Europe … not for global involvement or understanding but because of lack of design talent in the country. There are just a handful of design schools. In fact, Idiom alone can absorb all the designers from every reputed design school every year.” The crunch is both in terms of numbers and skill, he adds.
Do we need more design schools? Says Keshavan: “Even China – known to be a mass producer and the cheapest manufacturer – has invested hugely in design. The Chinese government sends its designers to Italy and America and pays for their education so that they come back and set up design schools in China. China today has hundreds of design schools. In India, we just do not have enough design schools.”
But here again we are dealing with a double-edged sword. While we do need more quality people and design institutes, care must be taken to ensure the design industry does not meet the same fate as the animation industry has. While animation schools and quick courses have cropped up in every nook and corner, the quality leaves a lot to be desired, cautions Sonia Manchanda, Co-Founder, Idiom.
There are other challenges. Today it’s not about pure design alone. Besides an eye for colour and details, designers need to possess smart thinking to align the design elements with business strategies. Design has to meet the overall business objective. “Designers must be trained in strategic design thinking, design management and business designing,” says Manchanda. Are our design schools equipped to meet industry requirements? Concerns indeed!
Where Europe falls short
But amid the concerns and challenges lies our inherent advantage, that of cultural understanding. A good design is one which understands the cultural context well.
While it does definitely makes sense to “try out” European designers since there is an obvious interest from Europe and also considering that there are not many in India to choose from, a word of caution. European designers have limitations of lack of understanding of the Indian cultural context, besides reluctance to work in the “chaotic” environment that India provides.
Raj of Idiom puts things in perspective: “European designers find it traumatic when they have to deal with the ‘hyper-active’ and even chaotic Indian design support scenario. In fact, they have to be given a crash course on design in the Indian environment for them to be effective, here in India. European designers are accustomed to working in ’organised’ systems. They are ‘single’ assignment people and find it difficult to ‘multi-process’. The need of the hour in India is for designers to work on multiple design projects. International designers are by and large ‘specialists’…furniture, product, graphic etc. But we need specialists who are holistic. And all these issues have a bearing on how much you can charge your clients for employing international designers.”
So Indian designers do have the edge – that of Western education besides understanding the Indian environment! And as far as remuneration is concerned, it depends on whether you are a freelancer or with a firm. Says Idiom’s Manchanda: “If you are in a boutique firm - small in size doing small work for small business, the remuneration may be stagnant. But as the firm grows and becomes a large institution doing large projects, the remuneration certainly can look up.” It is certainly not a gloomy place to be in, she assures. Times are exciting, says Manchanda. Any takers?
Tuesday, January 8, 2008
PSUs join talent hunt with big hiring plans
New Delhi, Dec. 11 After a hiatus of sorts on large-scale recruitments, and with several rounds of voluntary retirement schemes behind them, public sector companies are back to hiring like never before. The trend is more pronounced in the case of PSUs in the infrastructure and banking sectors, with new inductions happening mainly at the entry level.
Bharat Heavy Electricals Ltd, for instance, plans to raise its headcount by over 18,000 in the next five years as part of its expansion programme. Steel major SAIL is already in the process of inducting 500 management trainees, while NTPC Ltd plans to recruit executive trainees across nearly all major technical and administrative functions.
National Aluminium Company Ltd is hiring engineering and management trainees, while Hindustan Petroleum Corporation Ltd is on the lookout for around 260 engineering and HR trainees.
According to Indian Institute of Banking and Finance estimates, public sector is slated to recruit over 1.5 lakh employees across various levels over the next three years. State Bank of India, Oriental Bank of Commerce, Union Bank of India, Andhra Bank and Bank of Baroda are among those working on plans to increase headcount.
To Recall seniors
BHEL, NTPC and some PSU banks have also decided to recall ex-employees at senior positions. “We plan to induct around 3,500 people annually for the next five years in almost all product lines at our plants,” the BHEL chief, Mr A. K. Puri, told Business Line. In a majority of cases, these recruitments are aimed at both infusing fresh talent for spearheading growth initiatives and also filling up some functions that fell vacant after past VRS offerings.
NTPC is looking to hire executive trainees across specialisations, including electrical, mechanical, civil, electronics, instrumentation, IT, mining, geology, human resource and finance, a company official said. The Rs 39,000-crore SAIL, which is implementing an expansion programme currently, is offering jobs to 400 management trainees in the technical side and 100 management trainees in administration. While NALCO is recruiting Graduate Engineer Trainees and Management Trainees, HPCL is in the process of recruiting 250 Officer Trainees in the engineering disciplines and another 10 Officer Trainees in the HR function.
In the case of the banking sector, according to IIBF, public sector banks in the country are likely to recruit over 1.5 lakh employees over the next three years. SBI is looking to hire nearly 3,000 employees, mainly for its associate banks including the State Bank of Hyderabad, while others such as Bank of Baroda, Union Bank of India and Andhra Bank are reportedly looking to expand their workforce by about 2,000 at various junior-and middle-management levels. Oriental Bank of Commerce is already in the market for recruiting around 200 Probationary officers in its first phase of officer-level
Bharat Heavy Electricals Ltd, for instance, plans to raise its headcount by over 18,000 in the next five years as part of its expansion programme. Steel major SAIL is already in the process of inducting 500 management trainees, while NTPC Ltd plans to recruit executive trainees across nearly all major technical and administrative functions.
National Aluminium Company Ltd is hiring engineering and management trainees, while Hindustan Petroleum Corporation Ltd is on the lookout for around 260 engineering and HR trainees.
According to Indian Institute of Banking and Finance estimates, public sector is slated to recruit over 1.5 lakh employees across various levels over the next three years. State Bank of India, Oriental Bank of Commerce, Union Bank of India, Andhra Bank and Bank of Baroda are among those working on plans to increase headcount.
To Recall seniors
BHEL, NTPC and some PSU banks have also decided to recall ex-employees at senior positions. “We plan to induct around 3,500 people annually for the next five years in almost all product lines at our plants,” the BHEL chief, Mr A. K. Puri, told Business Line. In a majority of cases, these recruitments are aimed at both infusing fresh talent for spearheading growth initiatives and also filling up some functions that fell vacant after past VRS offerings.
NTPC is looking to hire executive trainees across specialisations, including electrical, mechanical, civil, electronics, instrumentation, IT, mining, geology, human resource and finance, a company official said. The Rs 39,000-crore SAIL, which is implementing an expansion programme currently, is offering jobs to 400 management trainees in the technical side and 100 management trainees in administration. While NALCO is recruiting Graduate Engineer Trainees and Management Trainees, HPCL is in the process of recruiting 250 Officer Trainees in the engineering disciplines and another 10 Officer Trainees in the HR function.
In the case of the banking sector, according to IIBF, public sector banks in the country are likely to recruit over 1.5 lakh employees over the next three years. SBI is looking to hire nearly 3,000 employees, mainly for its associate banks including the State Bank of Hyderabad, while others such as Bank of Baroda, Union Bank of India and Andhra Bank are reportedly looking to expand their workforce by about 2,000 at various junior-and middle-management levels. Oriental Bank of Commerce is already in the market for recruiting around 200 Probationary officers in its first phase of officer-level
Jindal announces relief package for displaced families
Visakhapatnam, Dec. 11 JSW Aluminium Ltd of the Jindal group, setting up an alumina refinery in Vizianagaram district, is acquiring 867 acres of assigned land for the project and has announced a package for the displaced families, according to a press release issued here.
Mr. R.Ch. Swain, the project head, said in the release that the company would pay compensation of Rs 2,00,500 per acre to the assignee and Rs 75,000 per acre to the State Government for the land on the basis on revenue records as on December 31.
Employment
The company will ensure employment based on qualification to every displaced family and, if the family does not want the job, it will be paid Rs 3 lakh. Wages in accordance with the Minimum Wages Act will be paid to each family till one individual from the family is given a job.
Further, each family will be provided with a house of 480 sq feet with all amenities, and if the family does not want the house, it will be paid one-time compensation of Rs 1.5 lakh.
Other incentives
Each family will be given Rs 5,000 for transport of household goods and the company will pay an additional incentive of Rs 1,500 per month to each family for a year if the house is vacated on time.
A sum of Rs 3,000 will be provided for cattle shed, said the release.
Equity shares
Equity shares to the extent of land cost will be allotted to the displaced free of cost. A trust will be formed to hold the shares for three years and then transfer them to those losing lands.
Mr. R.Ch. Swain, the project head, said in the release that the company would pay compensation of Rs 2,00,500 per acre to the assignee and Rs 75,000 per acre to the State Government for the land on the basis on revenue records as on December 31.
Employment
The company will ensure employment based on qualification to every displaced family and, if the family does not want the job, it will be paid Rs 3 lakh. Wages in accordance with the Minimum Wages Act will be paid to each family till one individual from the family is given a job.
Further, each family will be provided with a house of 480 sq feet with all amenities, and if the family does not want the house, it will be paid one-time compensation of Rs 1.5 lakh.
Other incentives
Each family will be given Rs 5,000 for transport of household goods and the company will pay an additional incentive of Rs 1,500 per month to each family for a year if the house is vacated on time.
A sum of Rs 3,000 will be provided for cattle shed, said the release.
Equity shares
Equity shares to the extent of land cost will be allotted to the displaced free of cost. A trust will be formed to hold the shares for three years and then transfer them to those losing lands.
Amway India focusing on nutraceutical biz
New Delhi, Dec. 11 Direct selling major Amway India has set its sight on the growing nutraceutical business in the country. The company is in the process of focussing on as many as 5,000 doctors and health practitioners to promote its health supplements.
“Nutraceuticals is a growing business in India. Having a health practitioner recommend our product will bring in the necessary certification to the product,” Mr P. Sanker, Director, Legal and Corporate Affairs, told Business Line.
Asked if doctors will act as distribution agents, he said, medical practitioners will only recommend it like any other health supplement. They will not be involved in the direct marketing of the products.
Noting that the nutraceutical and health supplement market is a very mature market in the US and Japan, he said these products have immense potential in India. “Globally, we are known as a health and beauty company. With our nutraceutical venture, we want to reposition our brand in the country.”
The company, which is heavily expanding its product line to cater to the new age consumer, said it introduces as many as 10 products every calendar year.
Aimed at making its distributors have intensive knowledge on the nutraceutical business, Amway India is also conducting training modules. “The training modules ranging from two hours to a week-long certificate course will equip our distributors to handle consumers’ queries more efficiently.”
Global market
Globally, the size of the nutraceutical and dietary supplements market is estimated to be $30 billion. In India, it is estimated to be anything between Rs 1,100 crore and Rs 1,500 crore with an annual growth rate of 40 per cent.
Currently, it has a reach in over 2,000 cities across the country. The direct selling company had registered a turnover of Rs 738 crore during the year ended December 2006.
Asked if the wellness products met all regulatory standards, he said the products were basically fruit and vegetable derivatives.
“All regulatory approvals are in place,” he said adding the wellness product Nutrilite is not known to cause any side-effects.
Nutrilite, the flagship health product from the Amway stable is a vitamins, minerals and dietary supplements. Besides Nutrilite, Amway has 16 healthcare products in the Indian market under the nutrition and wellness category.
Nutrilite Protein powder is the largest protein supplement brand in India and Nutrilite Glucosamine is the largest selling glucosamine preparation in India, according to the company. This apart, products for weight management and health drinks are also being marketed and promoted. Currently, Nutrilite contributes to as much as 50 per cent of the company’s total turnover.
Observing that the concept of direct selling is on the upswing in India, he said the industry will stand at a whopping Rs 3,150 crore, with close to 13 lakh sales force under its wings.
“Nutraceuticals is a growing business in India. Having a health practitioner recommend our product will bring in the necessary certification to the product,” Mr P. Sanker, Director, Legal and Corporate Affairs, told Business Line.
Asked if doctors will act as distribution agents, he said, medical practitioners will only recommend it like any other health supplement. They will not be involved in the direct marketing of the products.
Noting that the nutraceutical and health supplement market is a very mature market in the US and Japan, he said these products have immense potential in India. “Globally, we are known as a health and beauty company. With our nutraceutical venture, we want to reposition our brand in the country.”
The company, which is heavily expanding its product line to cater to the new age consumer, said it introduces as many as 10 products every calendar year.
Aimed at making its distributors have intensive knowledge on the nutraceutical business, Amway India is also conducting training modules. “The training modules ranging from two hours to a week-long certificate course will equip our distributors to handle consumers’ queries more efficiently.”
Global market
Globally, the size of the nutraceutical and dietary supplements market is estimated to be $30 billion. In India, it is estimated to be anything between Rs 1,100 crore and Rs 1,500 crore with an annual growth rate of 40 per cent.
Currently, it has a reach in over 2,000 cities across the country. The direct selling company had registered a turnover of Rs 738 crore during the year ended December 2006.
Asked if the wellness products met all regulatory standards, he said the products were basically fruit and vegetable derivatives.
“All regulatory approvals are in place,” he said adding the wellness product Nutrilite is not known to cause any side-effects.
Nutrilite, the flagship health product from the Amway stable is a vitamins, minerals and dietary supplements. Besides Nutrilite, Amway has 16 healthcare products in the Indian market under the nutrition and wellness category.
Nutrilite Protein powder is the largest protein supplement brand in India and Nutrilite Glucosamine is the largest selling glucosamine preparation in India, according to the company. This apart, products for weight management and health drinks are also being marketed and promoted. Currently, Nutrilite contributes to as much as 50 per cent of the company’s total turnover.
Observing that the concept of direct selling is on the upswing in India, he said the industry will stand at a whopping Rs 3,150 crore, with close to 13 lakh sales force under its wings.
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