Posts
A static print ad suddenly comes to life — with an interactive video of the brand. That’s augmented reality. While sitting in a coffee shop, why would you wait for the server to bring you the menu when you can get it on the mobile phone. That’s Blufi for you. Then, there’s holography and 3D wall projectors that promise to change the way we see signages and OOH. At Cannes 2010, Kate Hyewon Oh, creative director, Cheil Worldwide made a presentation on the technologies that brands and agencies will have to look at in the time to come. Narasimha Suresh realised how the mobile can become a media platform and technology the enabler. But he wasn’t at Cannes this year listening to Kate. Suresh founded TeliBrahma six years back and his entrepreneurial journey in mobility, he says, comprises applications using technology like augmented reality for brands in India. “We were always excited by mobile technology — the power of PC in your hand. We believed in several markets including India and we believed mobile technology will leapfrog in these markets,” says Suresh. And like the exponential jumps in mobile users month after month, Suresh claims a 100 % q-o-q growth without divulging the turnover of the company. “The biggest issue was around the hype and expectation. Mobile was predominantly considered as a response generation/lead generation media,” says Suresh of the initial challenges. “Extremely low SMS charges and lack of results delivered were not helping either”, he adds. Mobile as a communication platform for brands is still largely responsible for lead generation. But TeliBrahma’s president, P R Satheesh, says the solutions on offer integrate with traditional media and ensures brand building across touch points like print, television, outdoors, events and retail. Citing the example of WagonR, Satheesh says the campaign reached more than 5 lakh potential consumers through branded games and interactive brochures. “Or one can focus on a static print ad to download interactive content like a 3D model of a car along with specifications. So there’s rich media experience and sharp targetting,” says Satheesh. For a new technology start up, getting brands hooked to applications is a herculean task and Satheesh admits that agencies like GroupM deserve credit in propagating the importance of the mobile platform. Integrated solutions may be an abused phrase in the marketing and communications space today, but Satheesh thinks it’s these two words that will fuel TeliBrahma’s growth in the market place. “Both agencies and brands are looking at mobile and digital solutions.” Talk to ad professionals in India and overseas, and they will say digital is the next big wave. Some say that we are already in the thick of a new digital revolution. However, with the internet lagging behind mobiles in India, the digital wave will hit us through the little device in our hands. And that’s the wave solution providers like TeliBrahma are waiting to ride.
Source: Brand Equity, The Economic Times
Tuesday, October 19, 2010
Augmented Reality
A static print ad suddenly comes to life — with an interactive video of the brand. That’s augmented reality. While sitting in a coffee shop, why would you wait for the server to bring you the menu when you can get it on the mobile phone. That’s Blufi for you. Then, there’s holography and 3D wall projectors that promise to change the way we see signages and OOH. At Cannes 2010, Kate Hyewon Oh, creative director, Cheil Worldwide made a presentation on the technologies that brands and agencies will have to look at in the time to come. Narasimha Suresh realised how the mobile can become a media platform and technology the enabler. But he wasn’t at Cannes this year listening to Kate. Suresh founded TeliBrahma six years back and his entrepreneurial journey in mobility, he says, comprises applications using technology like augmented reality for brands in India. “We were always excited by mobile technology — the power of PC in your hand. We believed in several markets including India and we believed mobile technology will leapfrog in these markets,” says Suresh. And like the exponential jumps in mobile users month after month, Suresh claims a 100 % q-o-q growth without divulging the turnover of the company. “The biggest issue was around the hype and expectation. Mobile was predominantly considered as a response generation/lead generation media,” says Suresh of the initial challenges. “Extremely low SMS charges and lack of results delivered were not helping either”, he adds. Mobile as a communication platform for brands is still largely responsible for lead generation. But TeliBrahma’s president, P R Satheesh, says the solutions on offer integrate with traditional media and ensures brand building across touch points like print, television, outdoors, events and retail. Citing the example of WagonR, Satheesh says the campaign reached more than 5 lakh potential consumers through branded games and interactive brochures. “Or one can focus on a static print ad to download interactive content like a 3D model of a car along with specifications. So there’s rich media experience and sharp targetting,” says Satheesh. For a new technology start up, getting brands hooked to applications is a herculean task and Satheesh admits that agencies like GroupM deserve credit in propagating the importance of the mobile platform. Integrated solutions may be an abused phrase in the marketing and communications space today, but Satheesh thinks it’s these two words that will fuel TeliBrahma’s growth in the market place. “Both agencies and brands are looking at mobile and digital solutions.” Talk to ad professionals in India and overseas, and they will say digital is the next big wave. Some say that we are already in the thick of a new digital revolution. However, with the internet lagging behind mobiles in India, the digital wave will hit us through the little device in our hands. And that’s the wave solution providers like TeliBrahma are waiting to ride.
Source: Brand Equity, The Economic Times
Source: Brand Equity, The Economic Times
Wednesday, October 13, 2010
Cash and Carry
Notwithstanding his long career, Rajeev Bakshi likes to compare himself to a sprinter. Only that his definition of a sprint is not a short burst of speed, but a run spanning 3-5 years. "Then I get impatient," acknowledges Bakshi. However the newly minted MD of Metro cash & carry India, part of Euro 66 billion Metro Group , will require the patience and perseverance of a long distance runner to bring the company to its full potential in India. For Bakshi’s into that part of the modern trade story which is more a marathon than a 100 metre dash. After all, cash and carry formats (C&C) don’t get the eyeballs, footfalls or even high decibel visibility compared to the neighbourhood formats and hypermarkets. Stores and hypermarts sell to end consumers but cash & carry is a complete B2B business — selling to traders. The cash & carry segment in India is a relatively small fraction of modern trade. Modern trade in India makes up just about 10%-12 % of the $ 350 billion retail trade in India and there are no benchmark estimates on the potential of cash & carry formats in India. On top of that, the retail landscape is littered with carcasses of C&C players who lost the race, even before it started for some. Shoprite, a South Africa based retail major, one of the earlier movers in the country ran out of steam in late 2000. Though Indian retailers like Future Group and Reliance Retail have evinced interest in this business, but on-ground they don’t have much to show. Even international players like Carrefour and Tesco are testing waters with the French retail giant just starting to draw its Indian roadmap. In many ways, the universe when it comes to cash & carry has shrunk instead of expanding.
Passive to Proactive
Industry watchers feel that the trap companies find themselves in maybe due to their own doing. Given the B2B nature of the business, observers and players believe that cash & carry formats operating in India have adopted a more ‘wait for business to come’ attitude rather than a ‘go out and acquire business’ one. Raman Mangalorkar, MD, Highstreet Capital, an infrastructure fund, says the initial enthusiasm in this space was largely keeping in mind the multi-brand retailing market. "The desire was not to build the cash & carry business but hope that retailing in India opens up. So cash & carry format was a backdoor entry strategy for the players," says Mangalorkar. It was a case of bypassing the regulations and marking future stakes than building serious business. Bakshi of Metro however feels that it’s unfair to make a judgement call on the progress of the business. "Metro in China is 15 years old story, but the real take-off happened only 7-8 years back. So a gestation period exists and in India we are not worse off in the evolution of the modern trade, even cash & carry," he says. However, he agrees, that cash & carry business traditionally has been passive. Initially, the definition of cash & carry customers itself was mired in controversy as stock keeping unit (SKU) meant for resale were sold for private consumption. Even though the delineation of customers may still constitute a grey area, retail professionals believe cash & carry players never got down to understanding the target audience they are catering to. "The players have not done enough work to acquire kirana stores for instance. The FMCG companies do it better than the cash & carry formats in terms of distribution and logistics," explains Raghu Pillai, chief executive, Future Value Retail.
Key Account/Customer Segmentation
Now cash & carry players are taking a leaf from the FMCG companies to create a better business model. Bharti Walmart operates three Best Price Modern Wholesale cash & carry stores in North India and they have come up with a unique Indian strategy. Raj Jain, president, Walmart India and MD, Bharti Walmart says the stores have sales and business development teams with member acquisition starting six months before a store opens. "B2B cash & carry format stores like Best Price are unique in the Walmart universe. So initiatives at the stores are a benchmark for Walmart internationally," says Jain. With experiences from Cadbury and PepsiCo , Bakshi of Metro says the biggest change in the approach towards the business has focused around customer centricity. "So it’s customer segmentation and products according to verticals like HORECA (hotels, restaurants and catering), traders and institutions," he says. Metro decided to have a customer marketing director on the board in each and every country it operates. Citing the instance of servicing the HORECA segment, Ajay Singh Sheodaan, director - customer marketing, Metro says specialist teams were brought into the company who understood the segment. "So we roped in a hospitality business professional, who has insights, identifies gaps and services them. So it could be a breakfast solution for a hotel, where we create a backend with a dedicated store for them in our store," he says. He adds; "Our interaction is not restricted to just the hotel managers, we interact with chefs, purchase managers to arrive at an efficient way of distribution." Pillai of Future Value agrees that formats have been able to fare better when it comes to servicing the HORECA segment. "That’s because the supply chain don’t exist. Even basic hygiene issues were not addressed which cash & carry formats have been able to capitalise upon," says Pillai. HORECA and institutional business may be the new revenue streams, but the bread and butter for cash & carry formats are the trader community. Hereon, even cash & carry formats are adopting practises initiated by FMCG players like HUL with its Supervalue Store concept. Jain of Bharti Walmart says the format has a ‘mera kirana’ programme that helps local mom and pop stores grow their business by identifying need gaps relevant to them. "The Mera Kirana model store helps in practical demonstration of various topics such as maximising paid displays, efficient layout and stocking of products," says Jain. To compete with manufacturers when it comes to breadth of distribution, formats like Metro have tied up with microfinance companies like SKS Microfinance . The loan officers from SKS help collect orders from small traders Metro cannot reach in the normal course of business. "Now, we have built a network touching 3,000 customers in and around Hyderabad." It’s early days for the cash & carry industry in India. Perhaps the many spectacular failures and lessons in what not to do will help the existing players figure out what’s to be done to make this part of retail a success. "The universe has to grow with more stores for one to validate the model," says Pillai. The run up is slow but it has to be consistent and professionals like Bakshi know they are in it for a long run.
Source: The Economic Times
Passive to Proactive
Industry watchers feel that the trap companies find themselves in maybe due to their own doing. Given the B2B nature of the business, observers and players believe that cash & carry formats operating in India have adopted a more ‘wait for business to come’ attitude rather than a ‘go out and acquire business’ one. Raman Mangalorkar, MD, Highstreet Capital, an infrastructure fund, says the initial enthusiasm in this space was largely keeping in mind the multi-brand retailing market. "The desire was not to build the cash & carry business but hope that retailing in India opens up. So cash & carry format was a backdoor entry strategy for the players," says Mangalorkar. It was a case of bypassing the regulations and marking future stakes than building serious business. Bakshi of Metro however feels that it’s unfair to make a judgement call on the progress of the business. "Metro in China is 15 years old story, but the real take-off happened only 7-8 years back. So a gestation period exists and in India we are not worse off in the evolution of the modern trade, even cash & carry," he says. However, he agrees, that cash & carry business traditionally has been passive. Initially, the definition of cash & carry customers itself was mired in controversy as stock keeping unit (SKU) meant for resale were sold for private consumption. Even though the delineation of customers may still constitute a grey area, retail professionals believe cash & carry players never got down to understanding the target audience they are catering to. "The players have not done enough work to acquire kirana stores for instance. The FMCG companies do it better than the cash & carry formats in terms of distribution and logistics," explains Raghu Pillai, chief executive, Future Value Retail.
Key Account/Customer Segmentation
Now cash & carry players are taking a leaf from the FMCG companies to create a better business model. Bharti Walmart operates three Best Price Modern Wholesale cash & carry stores in North India and they have come up with a unique Indian strategy. Raj Jain, president, Walmart India and MD, Bharti Walmart says the stores have sales and business development teams with member acquisition starting six months before a store opens. "B2B cash & carry format stores like Best Price are unique in the Walmart universe. So initiatives at the stores are a benchmark for Walmart internationally," says Jain. With experiences from Cadbury and PepsiCo , Bakshi of Metro says the biggest change in the approach towards the business has focused around customer centricity. "So it’s customer segmentation and products according to verticals like HORECA (hotels, restaurants and catering), traders and institutions," he says. Metro decided to have a customer marketing director on the board in each and every country it operates. Citing the instance of servicing the HORECA segment, Ajay Singh Sheodaan, director - customer marketing, Metro says specialist teams were brought into the company who understood the segment. "So we roped in a hospitality business professional, who has insights, identifies gaps and services them. So it could be a breakfast solution for a hotel, where we create a backend with a dedicated store for them in our store," he says. He adds; "Our interaction is not restricted to just the hotel managers, we interact with chefs, purchase managers to arrive at an efficient way of distribution." Pillai of Future Value agrees that formats have been able to fare better when it comes to servicing the HORECA segment. "That’s because the supply chain don’t exist. Even basic hygiene issues were not addressed which cash & carry formats have been able to capitalise upon," says Pillai. HORECA and institutional business may be the new revenue streams, but the bread and butter for cash & carry formats are the trader community. Hereon, even cash & carry formats are adopting practises initiated by FMCG players like HUL with its Supervalue Store concept. Jain of Bharti Walmart says the format has a ‘mera kirana’ programme that helps local mom and pop stores grow their business by identifying need gaps relevant to them. "The Mera Kirana model store helps in practical demonstration of various topics such as maximising paid displays, efficient layout and stocking of products," says Jain. To compete with manufacturers when it comes to breadth of distribution, formats like Metro have tied up with microfinance companies like SKS Microfinance . The loan officers from SKS help collect orders from small traders Metro cannot reach in the normal course of business. "Now, we have built a network touching 3,000 customers in and around Hyderabad." It’s early days for the cash & carry industry in India. Perhaps the many spectacular failures and lessons in what not to do will help the existing players figure out what’s to be done to make this part of retail a success. "The universe has to grow with more stores for one to validate the model," says Pillai. The run up is slow but it has to be consistent and professionals like Bakshi know they are in it for a long run.
Source: The Economic Times
Cash and Carry Story
Notwithstanding his long career, Rajeev Bakshi likes to compare himself to a sprinter. Only that his definition of a sprint is not a short burst of speed, but a run spanning 3-5 years. “Then I get impatient,” acknowledges Bakshi. However the newly minted MD of Metro cash & carry India, part of Euro 66 billion Metro Group , will require the patience and perseverance of a long distance runner to bring the company to its full potential in India. For Bakshi’s into that part of the modern trade story which is more a marathon than a 100 metre dash. After all, cash and carry formats (C&C) don’t get the eyeballs, footfalls or even high decibel visibility compared to the neighbourhood formats and hypermarkets. Stores and hypermarts sell to end consumers but cash & carry is a complete B2B business — selling to traders. The cash & carry segment in India is a relatively small fraction of modern trade. Modern trade in India makes up just about 10%-12 % of the $ 350 billion retail trade in India and there are no benchmark estimates on the potential of cash & carry formats in India. On top of that, the retail landscape is littered with carcasses of C&C players who lost the race, even before it started for some. Shoprite, a South Africa based retail major, one of the earlier movers in the country ran out of steam in late 2000. Though Indian retailers like Future Group and Reliance Retail have evinced interest in this business, but on-ground they don’t have much to show. Even international players like Carrefour and Tesco are testing waters with the French retail giant just starting to draw its Indian roadmap. In many ways, the universe when it comes to cash & carry has shrunk instead of expanding.
Passive to Proactive
Industry watchers feel that the trap companies find themselves in maybe due to their own doing. Given the B2B nature of the business, observers and players believe that cash & carry formats operating in India have adopted a more ‘wait for business to come’ attitude rather than a ‘go out and acquire business’ one. Raman Mangalorkar, MD, Highstreet Capital, an infrastructure fund, says the initial enthusiasm in this space was largely keeping in mind the multi-brand retailing market. “The desire was not to build the cash & carry business but hope that retailing in India opens up. So cash & carry format was a backdoor entry strategy for the players,” says Mangalorkar. It was a case of bypassing the regulations and marking future stakes than building serious business. Bakshi of Metro however feels that it’s unfair to make a judgement call on the progress of the business. “Metro in China is 15 years old story, but the real take-off happened only 7-8 years back. So a gestation period exists and in India we are not worse off in the evolution of the modern trade, even cash & carry,” he says. However, he agrees, that cash & carry business traditionally has been passive. Initially, the definition of cash & carry customers itself was mired in controversy as stock keeping unit (SKU) meant for resale were sold for private consumption. Even though the delineation of customers may still constitute a grey area, retail professionals believe cash & carry players never got down to understanding the target audience they are catering to. “The players have not done enough work to acquire kirana stores for instance. The FMCG companies do it better than the cash & carry formats in terms of distribution and logistics,” explains Raghu Pillai, chief executive, Future Value Retail.
Key Account/Customer Segmentation
Now cash & carry players are taking a leaf from the FMCG companies to create a better business model. Bharti Walmart operates three Best Price Modern Wholesale cash & carry stores in North India and they have come up with a unique Indian strategy. Raj Jain, president, Walmart India and MD, Bharti Walmart says the stores have sales and business development teams with member acquisition starting six months before a store opens. “B2B cash & carry format stores like Best Price are unique in the Walmart universe. So initiatives at the stores are a benchmark for Walmart internationally,” says Jain. With experiences from Cadbury and PepsiCo , Bakshi of Metro says the biggest change in the approach towards the business has focused around customer centricity. “So it’s customer segmentation and products according to verticals like HORECA (hotels, restaurants and catering), traders and institutions,” he says. Metro decided to have a customer marketing director on the board in each and every country it operates. Citing the instance of servicing the HORECA segment, Ajay Singh Sheodaan, director - customer marketing, Metro says specialist teams were brought into the company who understood the segment. “So we roped in a hospitality business professional, who has insights, identifies gaps and services them. So it could be a breakfast solution for a hotel, where we create a backend with a dedicated store for them in our store,” he says. He adds; “Our interaction is not restricted to just the hotel managers, we interact with chefs, purchase managers to arrive at an efficient way of distribution.” Pillai of Future Value agrees that formats have been able to fare better when it comes to servicing the HORECA segment. “That’s because the supply chain don’t exist. Even basic hygiene issues were not addressed which cash & carry formats have been able to capitalise upon,” says Pillai. HORECA and institutional business may be the new revenue streams, but the bread and butter for cash & carry formats are the trader community. Hereon, even cash & carry formats are adopting practises initiated by FMCG players like HUL with its Supervalue Store concept. Jain of Bharti Walmart says the format has a ‘mera kirana’ programme that helps local mom and pop stores grow their business by identifying need gaps relevant to them. “The Mera Kirana model store helps in practical demonstration of various topics such as maximising paid displays, efficient layout and stocking of products,” says Jain. To compete with manufacturers when it comes to breadth of distribution, formats like Metro have tied up with microfinance companies like SKS Microfinance . The loan officers from SKS help collect orders from small traders Metro cannot reach in the normal course of business. “Now, we have built a network touching 3,000 customers in and around Hyderabad.” It’s early days for the cash & carry industry in India. Perhaps the many spectacular failures and lessons in what not to do will help the existing players figure out what’s to be done to make this part of retail a success. “The universe has to grow with more stores for one to validate the model,” says Pillai. The run up is slow but it has to be consistent and professionals like Bakshi know they are in it for a long run.
Passive to Proactive
Industry watchers feel that the trap companies find themselves in maybe due to their own doing. Given the B2B nature of the business, observers and players believe that cash & carry formats operating in India have adopted a more ‘wait for business to come’ attitude rather than a ‘go out and acquire business’ one. Raman Mangalorkar, MD, Highstreet Capital, an infrastructure fund, says the initial enthusiasm in this space was largely keeping in mind the multi-brand retailing market. “The desire was not to build the cash & carry business but hope that retailing in India opens up. So cash & carry format was a backdoor entry strategy for the players,” says Mangalorkar. It was a case of bypassing the regulations and marking future stakes than building serious business. Bakshi of Metro however feels that it’s unfair to make a judgement call on the progress of the business. “Metro in China is 15 years old story, but the real take-off happened only 7-8 years back. So a gestation period exists and in India we are not worse off in the evolution of the modern trade, even cash & carry,” he says. However, he agrees, that cash & carry business traditionally has been passive. Initially, the definition of cash & carry customers itself was mired in controversy as stock keeping unit (SKU) meant for resale were sold for private consumption. Even though the delineation of customers may still constitute a grey area, retail professionals believe cash & carry players never got down to understanding the target audience they are catering to. “The players have not done enough work to acquire kirana stores for instance. The FMCG companies do it better than the cash & carry formats in terms of distribution and logistics,” explains Raghu Pillai, chief executive, Future Value Retail.
Key Account/Customer Segmentation
Now cash & carry players are taking a leaf from the FMCG companies to create a better business model. Bharti Walmart operates three Best Price Modern Wholesale cash & carry stores in North India and they have come up with a unique Indian strategy. Raj Jain, president, Walmart India and MD, Bharti Walmart says the stores have sales and business development teams with member acquisition starting six months before a store opens. “B2B cash & carry format stores like Best Price are unique in the Walmart universe. So initiatives at the stores are a benchmark for Walmart internationally,” says Jain. With experiences from Cadbury and PepsiCo , Bakshi of Metro says the biggest change in the approach towards the business has focused around customer centricity. “So it’s customer segmentation and products according to verticals like HORECA (hotels, restaurants and catering), traders and institutions,” he says. Metro decided to have a customer marketing director on the board in each and every country it operates. Citing the instance of servicing the HORECA segment, Ajay Singh Sheodaan, director - customer marketing, Metro says specialist teams were brought into the company who understood the segment. “So we roped in a hospitality business professional, who has insights, identifies gaps and services them. So it could be a breakfast solution for a hotel, where we create a backend with a dedicated store for them in our store,” he says. He adds; “Our interaction is not restricted to just the hotel managers, we interact with chefs, purchase managers to arrive at an efficient way of distribution.” Pillai of Future Value agrees that formats have been able to fare better when it comes to servicing the HORECA segment. “That’s because the supply chain don’t exist. Even basic hygiene issues were not addressed which cash & carry formats have been able to capitalise upon,” says Pillai. HORECA and institutional business may be the new revenue streams, but the bread and butter for cash & carry formats are the trader community. Hereon, even cash & carry formats are adopting practises initiated by FMCG players like HUL with its Supervalue Store concept. Jain of Bharti Walmart says the format has a ‘mera kirana’ programme that helps local mom and pop stores grow their business by identifying need gaps relevant to them. “The Mera Kirana model store helps in practical demonstration of various topics such as maximising paid displays, efficient layout and stocking of products,” says Jain. To compete with manufacturers when it comes to breadth of distribution, formats like Metro have tied up with microfinance companies like SKS Microfinance . The loan officers from SKS help collect orders from small traders Metro cannot reach in the normal course of business. “Now, we have built a network touching 3,000 customers in and around Hyderabad.” It’s early days for the cash & carry industry in India. Perhaps the many spectacular failures and lessons in what not to do will help the existing players figure out what’s to be done to make this part of retail a success. “The universe has to grow with more stores for one to validate the model,” says Pillai. The run up is slow but it has to be consistent and professionals like Bakshi know they are in it for a long run.
Wednesday, September 29, 2010
Books & Stationery market
As part of promoter family running the business, Shailendra Gala, VP - stationery division, Navneet Publications has been involved in the business for nearly 15 years now. Even as the brand enjoys equity in the market and has a legacy spanning five decades, it’s the future course of the business that has Gala excited. Ditto for Dilip Dandekar, MD, Camlin, who’s has been involved with stationery for the past forty years but is now betting big on the next decade. The books and stationery market is largely fragmented with myriad of small, regional players dominating the market. But there are players like Navneet, Sundaram, Staples Camlin and even ITC who are now looking to grab a larger share from the unorganised segment and create a brand name for themselves. Thus ITC’s education and stationery products business may be just six years old, but it has a turnover of Rs 400 crore and is clocking a growth of 20%, according to CEO, Chand Das. So the business has acquired enough traction in the market now to aim for the big bucks in the future. Global chain Staples present in India via an association with Pantaloons retail focuses more on the office supplies side of the stationery business. According to Shailesh Karwa, co-founder and co-CEO, Staples, "Staples today is the largest organised office products player in the India market, reaching Rs 200 crores in sales in our third year of operation. Both the consumer and the business segment in India have already found great value in the model. And the momentum gives us the confidence to reach our goal of Rs 500 crores in sales by 2012." The common thread running between the above mentioned names is that all of them are looking to either reinforce or create a rock solid national brand name in a highly commoditised and fragemented market. Sure, we all have heard about Navneet notebooks and Camlin colour pens and even Classmate, but chances are these brands are the last thing one thinks of while actually making a purchase decision. Even if one does have a brand preference, one works just as well as the other. It’s in such a cluttered environment that these brands are looking to create a niche for themselves. There are no official numbers available to know how big the market is, but industry estimates put the books and stationery segment to be in the range Rs 11,000 crore. Out of the total pie, around Rs 6000 crore is estimated to be paper stationery, while the rest is categorised as non paper stationery comprising writing instruments, art materials etc. Market players estimate the growth rate for both segments to rise to around 15% annually in the time to come, fuelled by the interest and investment in the education sector, both from public and private sector. "Education as a whole is getting high priority. The market has expanded and consumption has increased," says Gala of Navneet. To grab a bigger share, companies realise they no longer can remain non entities on the shelves. Gupta, founder, Nobby brand architects says even though school and college stationery is largely price sensitive, the emergence of smaller markets in the education sector will mean more investment in brand building. "More than the A and B class, it’s the rise of C and D, particularly the tertiary markets that will spur expansion plans of players. So some will emerge as price warriors, while some players will be working on the entire marketing mix to create a brand," says Gupta. So it’s a combination of some players content with consolidating their existing strength, while others look to diverse segments after establishing their presence in one. Amrit Shah, CMD, Sundaram notebooks says the company has no plans of making a foray into the non paper segment given the highly fragmented nature of the business. Instead, Sundaram is looking to take its paper business into new markets like MP and Chattisgarh. The brand, informs Shah, has recently launched a digital form of content called e-class that stores syllabus in a pen drive. "The aim is to create a knowledge library and content that can be accessed by students even on TV or laptops," says Shah. While Sundaram may be content in its turf, Navneet has forayed into non paper stationery and Gala acknowledges that it’s a tough market. "Along with the unorganised market, we have to fight established players like Camlin," he admits. So a flanker strategy - with two brands operating at different price points - has been initiated by Navneet. "One of the brand operates at a low price point but with better packaging and design. This ensures that competition doesn’t hit the brand operating at the top end," says Gala. Staples is banking on increasing its private label play on stationery. According to Sharad Dalmia, cofounder and co CEO, Staples, "Something like a binder clip can have a functional innovation of colour code and labels for filing important, urgent and priority stuff. A4 paper can have a packaging innovation of only 100 sheets for the student with a modest budget, who cannot afford the 500 sheet ream of paper at one go." Beyond the product and pricing, distribution is playing an important role in pushing the products into unchartered market. With 600 distributors, Chand Das of ITC says applying FMCG principles of expansion, promotions and marketing also works in this segment. "Aspects like trade marketing, merchandising, signages, school and college contact programmes, all this enables us to acquire more and more touch points in the market," he says. Staples has a Back To School sale every May just before schools re-open after summer vacations. According to Dalmia, "We are only pleased to find fellow competitors now mimicking the same "Back to school’ events. The BTL activities would range from contests for students to learning and collaborative networking for small businesses in the stores." Gupta of Nobby Brand Architects says ITC is using its distribution muscle to make up for the relatively new presence it has in the market compared to others. "They can leverage their presence in segments like general trade and even trade like pan shops to acquire a broad appeal in the market," says Gupta. To counter the entry of players like ITC in non paper segment, brands like Camlin is looking to dive further into the market. Dandekar of Camlin says the company is working on creating separate sales and promotional teams to target schools and large institutions respectively. "By beefing up distribution and creating dedicated teams, the objective is to touch more than 20,000 schools and 250,000 retailers in the next couple of years," he says. In some sectors, brands have become commodities, while the reverse is been attempted in the books and stationery segment. The journey of product, price, packaging and distribution is bound to see some interesting chapters ahead. Source: Brand Equity, The Economic Times
Tuesday, September 28, 2010
Education — a new wave
Hi All,
Going by the number of ads — largely print and television, i have a feeling that education sector is readying for a massive spurt in marketing and communications. Right from kindergarden to post graduation, there is a spurt in number of players looking to create a national play. And players increase their footprint, focus on brand name will be important.
Going by the number of ads — largely print and television, i have a feeling that education sector is readying for a massive spurt in marketing and communications. Right from kindergarden to post graduation, there is a spurt in number of players looking to create a national play. And players increase their footprint, focus on brand name will be important.
Education — the new frontier
Hi All,
Going by the number of ads — largely print and television, i have a feeling that education sector is readying for a massive spurt in marketing and communications. Right from kindergarden to post graduation, there is a spurt in number of players looking to create a national play. And players increase their footprint, focus on brand name will be important.
Going by the number of ads — largely print and television, i have a feeling that education sector is readying for a massive spurt in marketing and communications. Right from kindergarden to post graduation, there is a spurt in number of players looking to create a national play. And players increase their footprint, focus on brand name will be important.
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