Brand Update : Pureit Ups The Ante

HUL's first foray into the consumer durable market- Pureit is on an aggressive mode. The brand which was launched in 2004 has taken the battle into the premium segment of the water purifier market with the launch of Pureit Marvella. 

Pureit is a classic case of a brand exploiting an important need-gap in the market. Indian water-purifier market worth around Rs 1200 crore is evolving, growing at 15%. The marketing of water purifiers were skewed towards urban markets of India. Only 8 % of the Indian consumers use water purifier which indicates the poor penetration of this product category into Indian households. The major hindrance for this being high price, installation difficulties, electricity consumption and lack of awareness. Eureka Forbes pioneered the growth of this category in the Indian market. Now this category has lot of players and  new product-lines like RO water purifiers has been introduced.

The major players in the electricity -powered water purifier market however ignored the mass market focusing more on the margin rather than volume. These products which were priced at Rs 5000 upwards were beyond the reach of the average middleclass customers. Even though many such consumers were aware of the health benefits of a water-purifier, it was never in the priority list of high value purchases.

Sensing the opportunity, HUL launched Pureit range of battery operated storage-type purifiers at a price range of Rs 990- Rs 1250. These purifiers did not necessitated any installations which was a definite advantage for those who lived in rented houses. The brand was widely tested in South India before the national launch . According to reports, Pureit has already sold more than 1.3 million units becoming the largest selling water-purifier in India in volume-terms. The brand also created a new category of  non-electric storage- water purifier market which is now worth around Rs 300 crore and growing very fast than the electric category.

One of the problems that Pureit faced during the launch was the doubt about brand's efficacy in the purifying business. HUL is new to this industry and not an expert so consumers rightly doubted the effectiveness of its product . To counter that, Pureit ran a very highly advertised " 1 crore challenge " to convince the consumer that its product is more effective than the competing brands. 

After establishing its name in the mass market, Pureit is now targeting the market-creator Eureka Forbes in an aggressive frontal attack by launching the premium brand Pureit Marvella. Marvella is also a a non-electric purifier with storage capability priced at Rs 7000. The brand also launched its Reverse Osmosis water purifier Puerit Marvella RO at a price point of Rs 13500. These sub-brands directly competes with Eureka Forbes's major product-lines. 

The entry of HUL into the Eureka Forbe's territory was marked with lot of legal fights between the brands because of advertising claims and counter-claims. Now the fight is in the field with both the brands trying to out market each other.

HUL in its typical FMCG style is launching Marvella range with a celebrity endorsement. The brand has roped in Farhan Akther and Praachi Desai as the brand ambassador. The campaign is now running featuring these celebrities. 

Watch the ad here : Pureit marvella

The USP of the brand is its advanced warning system which alerts the consumer to change the RO membrane before it stops working.

The entry of HUL has virtually changed the dynamics of the water-purifier market in India. The market creator was totally out-maneuvered by HUL. Eureka Forbes decided not to counter HUL's foray into mass market because of lack of margin. In strategic terms , the decision made sense because low priced products tend to affect both margins and brand -equity. But Forbes failed to see the shift in the market and the growth of the non-electric segment to become the fastest growing segment. The popularity of the mass market segment also gave confidence for HUL to enter the market of Eureka Forbes. Eureka Forbes countered the HUL's entry by lowering the price of its base models. But HUL is such a formidable player that Eureka Forbes may need all its marketing strength to fight this giant.

Related Brand

Pureit : As Safe as boiled water

Eureka Forbes

Kent RO

Brand Update : Idea Wants To Break Language Barrier

Idea Cellular has hit upon another smart idea this season with the latest " language barrier " ad. Sirji now wants to break the language barrier using mobile phones.

Taking the concept of " An idea can change your life " , Idea cellular has been relentlessly pursuing new ideas in their campaigns. Whether those ideas have any relevance to the brand or not, campaigns were run with passion. This persistence has paid off for the brand interms of brand recognition and also interms of market share.

This time the brand talks about how the mobile telephony can the solve the issue of language barrier in a diverse country like India. A country with 28 recognized languages and 22000 dialects, language has been a big problem for those people who needs constant relocation.

As a follow-up to the campaign , Idea launched a language helpline across the circles it operates for the general public. Through the helpline, the caller can get the help of a translator . The user should give the message to be translated in English and the helpline agent will translate the message in the language required by the caller. The helpline is open to non- Idea subscribers also.

One of the key lessons from the brand is the power of passion. The brand owners are passionate about the brand's positioning and it invests heavily in the campaigns bombarding the consumers with passionate messages. This passion has made " What an Idea Sirji " line a part of the common lingo of youngsters.

The ad campaign has been well received by the viewers and it needs to be seen whether the actual service will be used by the consumers. Whether it is used or not, Idea should be congratulated on the consistency and the passion in which it approach the core brand positioning.

Related post

Idea

Consumer Insight : The end of air travel as I see it !

This October 2008, in a move that surprised India Inc , Jet Airways and Kingfisher Airlines announced an alliance for sharing their resources and network. According to a report in Deccan Herald, the company announced that this alliance will share their resources in seven critical operational areas including routes and even employees but both these airlines will maintain their legal and brand entity.

Jet and Kingfisher controls approximately 60 % market share . While pundits and media glorified the swift move by the mavericks who head these companies, I see the formation of a cartel.

As a consumer I see it as the end of my air travels.

Both the companies cited the sluggish environment as the core reason for this deal. The rising fuel cost, the looming recession is definitely going to take a toll in the industry. It makes terrific sense for two major players to come together and share resources and cut costs. I also think this as a unique event when two competitors come together to face the looming threats.

But cartels are bad. Its very bad for a consumer.

I live in the state of Kerala where every sector is ruled by cartels. Where else do you find the Bus Owners forming a cartel in the name of union, auto drivers/owners forming cartels, Taxi owners forming cartels , Film stars have cartels, Film producers have cartels, Contractors have cartels, hotels have cartels, traders have cartels, jewelers have one and even the scavengers have formed cartels.

And Keralites suffer the highhandedness of these cartels. They hold the un-organized citizens at ransom to meet their demands. So we see buses off the road, traders shutting shop and even movie production getting stopped .

India currently lacks sufficient laws to identify and regulate such cartels. Sadly there is no political will to prepare one.

Coming back to the Jet- Kingfisher alliance.

What is going to be the result of such an alliance ? I foresee a significant drop in the competitiveness of the industry as a whole.

I am not a fan of Air Deccan but I credit the boom of Indian Airline industry to that brand. And the death of Air Deccan is going to be detrimental to the growth of this industry.( my personal opinion ).

I am not an expert in this domain but as a consumer I will try to defend my point. Please feel free to comment your thoughts.

I am not a frequent traveler ( not even a regular one ). My first flight where I paid from my pocket was with Air Deccan. Why I chose to fly was that it was affordable ( not cheaper).

There are three main customers for Airlines -

The rich travelers : These customers have the income to afford the travel. They either pay from their pocket or their business foot the bill. So whether there is a slowdown or not these guys will fly.
The Executives : These customers fly frequently but the bill is paid by the company. I feel this segment of consumers form a large chunk of air-travelers. When the economy slows down these class will travel less depending on the austerity measures of their organisations.

The ordinary ones : Well, I belong to this class. I would love to fly if its affordable. This category of customers may not travel regularly.

Air Deccan targeted the ordinary ones and that too successfully. But there was an interesting bonus to that strategy. Lot of corporates began to enable their executives to travel by air . The ceiling of air travel for executives have come down since the airline rates became affordable.

There was a time where an executive who earlier had only the eligibility to travel by First Class train was given the sanction to fly since the rate differential was negligible.

This saw a spurt in airline passengers. Both regular and first- time fliers. Those who have never flied before started looking for better rates.

And look at the way the infrastructure reacted to this new boom. New airports began to come up, jobs in the sector boomed and lot of new business catering to this sector began to evolve.

I agree that much of this boom can the attributable to the economic prosperity that we say in the recent past but the low cost airlines contributed significantly .

Now what is the scenario ?

With virtually no low-cost airlines , the entire industry is in turmoil. Companies have cut the eligibility for air travel why because it is now not affordable. So less number of regular fliers. Airports which came up anticipating large number of consumers see very few and they began to hike the airport charges which again is going to put off many fliers.

And the formation of Jet- Kingfisher is only going to make things tougher. This alliance is going to be a major entry barrier for any new player. And using the commanding postion, these two can silence the current competitors.

Rates will be high, service will be bad and ordinary people will travel by train...

Related Brand
Air Deccan

MBAs During Recession : Advice From Gautam Ghosh

Its a great pleasure to present a guest post from Mr Gautam Ghosh on a topic which is currently on the top of the mind of all MBA students who are facing a dull placement season this year.

Gautam Ghosh is an HR Consultant based out of Delhi. An MBA in HR from the prestigious XLRI Jamshedpur, Gautam had an illustrious career in organisations like Deliotte and Touche, Hewlett Packard, Dell and Satyam before venturing into the field of HR Consulting.

An expert in the field of Human Resources Management, Gautam is also an avid blogger. His HR Blog is listed among the top 25 best HR blog by HR World. You can read his blog at gauteg.blogspot.com and gautamghosh.net

I am sure that readers of marketing practice will greatly benefit from the insights and advice from Gautam Ghosh.

How to prepare for placements in tough times .

First of all Harish, thanks for giving me this opportunity to write a guest post. As we all know the economic scenario worldwide is yo-yo'ing and is not one for the faint hearted.

When Harish asked me if I could write a post for students who are looking at graduate into a tough job market, I wondered what I could say to these young bright students.

Then it struck me. Placements are a time for marketing yourself, and in this tough market the principles of marketing become relevant more than ever.

So here are a few thoughts:

1. Be a quality product. As any marketer worth his salt will let you know, there is only so much you can do to sell an average product. Being an outstanding product goes a long way to make the marketing easier. That means not just raw intelligence but a lot of emotional quotient also. The ability to build relationships and get things done. The courage to take decisions. All these matter in addition to your ability to analyze numbers and define processes.

2. First generalise then specialise. Brands and marketers live and breathe segmentation. However, as an individual in the brand bazaar it's always better to generalise more and more and then decide on when to specialise. The upsides of specialisation is that during boom times you can command a premium, but the downside is that during a period of slump the generalists are the last to get laid off. Take the decision depending on how much risk you can take

3. Keep developing and evolving - Brands need to continuously develop and be relevant to the context. As a professional that is imperative too. Building skills and keeping an open mindset (to new horizons, mobility etc) is key to developing as a professional.

4. Prove your worth. As the economy slows, people's perception of what you can do would be different than what they would have assumed a year ago. Their risk taking propensity would have reduced, so be prepared to prove your worth before any additional work is given your way. Credibility would have to be earned and not assumed.

5. The start is just the start not the end. I know how stressful placement days can be. I lived through some of the most harrowing days of my life from days 1 to 3 in my campus placement season when 'dream company' after 'dream company' rejected me. Looking back, I can only see what seems obvious now. The first job has little or no bearing on where you are in ten years. The only case where it has a bearing on is you're lucky to join a job which you stick to for decades. Yes even in this day and age. There are some lucky folks like that too.

Gautam Ghosh



Related Post
MBAs During Recession

MBAs during Recession

Lot of readers of this blog are MBA students so I thought I would share my thoughts about the tough times ahead for aspiring management graduates.

This is placement season in most of the business schools and the worried look on the face of my colleagues in placement team confirm the fact that things are not rosy out there. Companies have cut back on their campus visits and jobs are slowly but surely drying up.

I think its time to do some reality check.

All the students who are now sitting for placements this season entered the MBA course when things were nothing but perfect. Last five years was the best period for any professional students.
Irrespective of the size and quality of the school, recruiters came in and took people in bulk. I used to tell the students that this is the right time to enter the job market armed with a management qualification.

Suddenly things are not the same.

Accept the Reality

I would urge my students across the campuses to please accept the fact that times are going to be tough. There is no need to deny the inevitable. We are in a slowdown. There will not be mass recruiters coming in and taking 50 or 100 students at a time.

According to placement co-ordinators, the number of companies visiting the campus may see a 50% drop.

Companies are going to be choosy

Having said that , I don't think that there will not be jobs. There will be lot of jobs. Even during economic slump, corporates need people. But the demand for human resources is going to come down drastically .

So companies are going to be choosy. Earlier during growth period, companies used to recruit in plenty because they were expanding very fast and time was short to pick and choose.
So the HR departments took the " Swim or Sink " approach where they recruited plenty without much scrutiny ( cannot afford to be because demand is huge ) . The idea is that those who can swim will survive and others will move out .

At one point of time, talk of the town was that anybody who can speak well will get a job. But now corporates cannot afford to splurge.

That means there will be less number of jobs and more candidates.

IIMs and top tier 1 business schools may not suffer much but the hit will be taken by the tier 2 and lower level business schools.

So What should MBA students do now ?

I am giving certain thoughts and would urge you to please put in your thoughts too in the comments section.

Be Realistic

Its time to crash- land. Please accept the fact that salaries are going to be low this time. You cannot blame either the college or the industries for doing that . The fact is that most of the corporates are tightening their budgets.

Hence be prepared to work on a reasonable package. I have to emphasis on the term " reasonable " because most of the students have their salary expectations based on the time when they joined . What I learn is that the salaries offered to freshers have come down by 30 %.

Most of the companies are now linking salary to performance ( usual practice !) and hence be realistic in your expectations. So when an offer comes to you with a reasonable salary, accept it. The focus should be on survival.

Start your workout

Its time for the students to have a self- assessment about the skills and knowledge . When the jobs are less and competition is more, you have to be prepared to fight hard to convince the recruiters that you are worth it.

Please accept the fact that No recruiter will take you because you have an MBA degree . They will take you for your skills . If you are able to prove your worth, you will win the job.

So do the following activities :

Be aware
Read business dailies and magazines and prepare notes on the major issue that are haunting global economies .
Brush up your communication skills.
In the past you will be recruited if you have good communication skill. But now you will be rejected if you do not have communication skill. ( Have you understood the difference ? ) .

Know the funda well
Those who tell that theory and practice are different is giving you wrong ideas.
How will a recruiter check whether you work hard ?
He will ask you fundas .
If you cannot answer then it shows that you cannot do your work well. So make sure that you are prepared to face funda questions .

Don't hate sales jobs, start loving it
I teach a course on Sales Management and I know the negative vibes from the students towards sales jobs. But remember that sales jobs are easy to get especially during recession times. If you can prove the recruiter that you can give him good volumes, he cannot resist taking you .
So be open to selling insurance , soaps or beedis whether you are a finance pro or an HR diva ( pun intended)

Attitude
Even if you lack communication skills, one factor that can land you a job is having the Attitude. But alas no business school teaches how to have that attitude. I have seen many students with funda and communication skills fail because of attitude.

What are those critical soft skills that recruiters look for :

Confidence in yourself. But make sure that you understand the difference between confidence and arrogance.

Ability to do basic work : Recruiters love people who can DO Stuff. So if you can convince them that you love getting dirty on the field to get things done, you can get that dream job.

Clarity of thought : Are you clear about what you are and where you want to be ?

And the most important of all is

Proof /Evidence
Can you give proof that the person that the recruiter is looking for is you. If not then try to get those proofs.
Give recruiters proof that you are hardworking .
Give them proofs that you are a leader .
Give them proofs that you can deliver what is expected out of you.

Evidence can be in the form of awards , accolades, stories , personal reference, project reports , activities etc.
If you do not have proofs or evidence to support your claims then you will have tough time convincing the recruiters.

Its not late , so start building your case with stories and evidences.

All the very best.

Consumer Insight # 6 : Do You Have a Plan B

Last weekend I took my family to a pilgrimage to the famous temple of Guruvayur . I booked the rooms at a decent hotel and was glad that we got rooms during the rush season. We landed at the hotel and greeted by the service staff and all went well in the beginning.

But in the evening the lift ( elevator) of the hotel stopped functioning. We reached the hotel after the tiring visit to the temple only to find that the elevator will not be functional for atleast one hour ( that's what the service staff told us). Our room were at the 4 th floor . I sat there looking perplexed since my old parents and my 4 year old child were to climb all the four floors.

There were also another family at the lobby looking equally worried since they had booked rooms for relatives who were to arrive at the hotel to attend their daughter's wedding . They looked hapless having to ask their guests to climb the stairs to the 4 th and 5 th floors.

The hotel staffs were looking equally helpless and the only action they performed was to ask their guests to climb the stairs.

At the end, we had to climb the stairs and hit the bed with all the exhaustion . We hoped that next day things will be taken care of. But in the morning , I found that still the elevator is not functioning. To much of the dismay, the room service told us that breakfast will be served only at the restaurant in the ground-floor.

This really blew my temper and I had to release all my anger on the reception staff. Then to my surprise, they offered us the Service Lift !!!! Infact the hotel had another lift that is used by the housecleaning department ( commonly known as service lift ) which was working.

They could have offered this to the customers immediately when the main lift stopped working. It could have made all the guests happy but the hotel failed to use it.

The issue here is two fold . The hotel did not have a plan B. They had one elevator and there are always a chance that these kind of problems can arise at any point of time. So in the service delivery process, the management had to forsee these kind of exigencies. If there was a plan B, then the service lift could have been made available on the spot.

Secondly the front office staff was not given enough empowerment to act during such kind of issues. The service script should be prepared in such a manner that the staff could make such kind of decisions to help the customers.

As of now, the hotels in Guruvayur can afford to make such kind of poor customer service since the demand far exceeds the supply . But tide always turns.

Consumer Insight # 5 : You are just a Number

I just had a enlightening conversation with a Vodafone Customer " care " center. The unsolicited call came and poor me attended. It went on like this

Lady : Sir, This is from Vodafone customer care center

me : yes

Lady : Sir We wanted to check whether you have activated our GPRS services.

Me : I have activated the GPRS services

Lady : Sir Do you know that you can download pictures and wallpapers from Vodafone website

me : See I don't use this service

Lady : Ok Sir.... What is your name ?

me ( Stunned ) : What ?

Lady : What is your name sir ?

me : You called me and you " should " be knowing my name !!!!!!

Lady : No sir, we only have your number.. Please give your name so that I can enter your name in the system.



I sat there wondering what is happening to marketing.

A company calling a customer and telling him that ultimate truth

Dear Customer .. You Are Just a Number.

Consumer Insight # 4 : Fish Rots From The Tail

There is a book titled " Fish Rots from the Head ", written by Bob Garratt, talks about the role of Board of Directors and the crisis in the boardroom. As the title of the book indicates, Bob feels that the decay of the company often starts with the passive attitude of the Board of Directors.


But I have a different opinion.

Yesterday I went to my bank which is India's largest private sector bank. I have limited my visits to the bank owing to the horrendous customer experience and has been relying on the passive but decent ATMs.

I have been banking with this bank for last five years and I must say that none of the officials including the Branch manager whom I have interacted during the opening of account works here now. It seems that people here changes every week.

I would say that its a clear sign of decay and decay starts with the tail . If Board of Directors are Head, then the front office ( customer service) will be the tail isn't it ?

In a classic article titled " Best Face Forward " in HBR December 2004, the authors Rayport & Jawroski clearly states that in this competitive world, customer service or rather customer experience is the only available competitive advantage.

But we can see that many companies turning a blind spot when it comes to customer service. Your company loses its competitive advantage the moment you outsource customer service. Firms spent lot of money bringing the customer to the company. But when the customer reaches out to the company, it gives a raw deal.

Why do companies do this kind of basic business stupidity ? There is only one reason - cost.

Customer service is a costly business. Its costly because it involves people. And most businesses look at human resource as a cost center . So for a business , it makes perfect sense to avail cheap labor through outsourcing its customer service. If China offers a cheap customer call center service, I bet most of the Indian companies will outsource from China.

So firms reduce the number of their customer service staffs . The existing staffs are given double workload. Often these guys forget how to smile . These people are under severe emotional labor. They have to give their best face forward irrespective of their emotional situation. These guys/gals may have their personal/professional problems but cannot afford to show it to the consumer. So their stress level will be equal or higher than those in the sales field.

How many companies are sensitive to these issues ? To add to this issue, some firms give sales target to the customer service executives.

But for a customer, what is lost is the experience . In most of the new generation banks , customers are just numbers. In a rush to reduce the human interaction ( which is costly) companies invest in technology believing that technology can replace human interaction.

Its true that when comparing to rude staff, machines are better . But not always.

What the companies need is a judicious mix of people and technology. We are forgetting that we are living in an experiential economy. Customers - whether small or big, are looking for experience especially in the service sector.

When the market is growing, all these customer service issues are set aside . Firms look at break-neck growth . The key focus is customer acquisition. But market does not grow indefinitely. At some point of time, growth will stop and what you have will be the existing customers whom you have forgotten.

When you go back to these customers who was given a raw deal, you get back what you have given them.

Consumer Insight #3 : Value

I was at my doctor's clinic when I noticed a quotation by John Ruskin . I was amused because it was different from the usual quotes displayed in a place like a clinic. You typically expect a health related one. But quite the contrary this quote was on marketing.

John Ruskin was not a marketer. Ruskin ( 1819-1900) was an artist, a writer ,a poet, a social critic and a writer. ( source:Wikipedia). I bet he is a enlightened consumer too.

What Ruskin has written about value is no-brainer.
Its pure commonsense but as a consumer we tend to forget this principle.
The quote goes like this
"

It's unwise to pay to much... But it's worse to pay to little.When you pay to much, you lose a little money... that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.The common law of business balance prohibits paying a little and getting a lot.... It can't be done.If you deal with the lowest bidder, it is well to add something for the risk you run.And if you do that, you will have enough to pay for something better."

He adds

"There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper. And the people who always go for the cheapest are this man's lawful prey."

















Although I am a marketing professor, I am a lousy consumer ( my wife's opinion ! ).

I see my self as a bargain hunter and most of the time I have burned my fingers looking for better bargain ( call it price) .

I blame it on my middleclass mindset for being so called value conscious.

But I think its the case with many customers. We tend to make mistakes by not understanding the true nature of value.


Its often greed that camouflage as value or bargain.

In the highly insightful book " It happened in India " by Kishore Biyani ,he says

" There are a couple of emotions that determine shopping behavior. The fundamental of them are greed, altruism, fear and envy. Greed drives a customer to purchase more than what he or she needs. "

What Ruskin says is perfectly true. Its not possible to less and get more... It does not make business sense. But customers lured by never-heard-before offers fall for it. The need for instant gratification is so huge that customers give in to the temptation.

It takes some patience to buy the best quality product because it costs more. Marketers of low priced products make their kill by instilling fear of a possible price hike among the customers .

We see messages like this all the time...
Limited offers !
Buy before price hike !
Offer to close this sunday !
Buy now or regret later !

Going by my experience the additional money (premium) you pay for getting the best product will compensate by giving you the peace of mind..

The doctor charged me a very heavy consulting fees... but I am not complaining.......

I think I am on my way to become a better consumer.

Consumer Insight #2 : Role of Users

During the monthly shopping for groceries, I noticed that my wife has included Vim bar instead of the Vim dishwash liquid. It was around one year back that we started using the dish wash liquid. And my wife was making positive comments about the utility part of the liquid form .

But strangely she has made a switch this month.The reason was simple : Our new maid servant prefer to use the dishwash soap rather than the liquid. My wife had to oblige.

This throws in a lot of challenges to a marketer. According to the marketing theory , there are different roles that consumer takes in the buying process :
Initiator
Influencer
Decider
Purchaser and
User
Marketing wisdom says that the marketer should first identify the members who play these role, identify the needs of each of these roles and then communicate to each of these roles.

In the above case, it was the maid servant ( user & influencer) who made the homemaker (decider) chose the product form. Dishwash market is worth Rs 600 crore and its crucial for a marketer to understand the dynamics of this market especially in the consumer buying behavior context.

So what does it mean to the marketer of a liquid dishwash product. From my understanding of this product form, liquid dishwash liquid is targeting the middle and upper strata of the society. In the urban markets , there is a chance that the households get the help of the maid servant.

In these homes, homemakers oblige to the demands of the maid servant because they want to get things done. More over there is a perception that maid servants will waste the dishwash liquid. As far as the maid servant is concerned, they are famliar with the dishwash cake and does not want to change.

It is a difficult take for the marketers to influence the influencers/users. Brand managers first has to decide whether it makes sense to target these influencers. Second is to try and communicate with these influencers.
A classic case of such strategy is that of Scotch Brite which tried to reach these housemaids by organizing events and training programs. But does it make economic sense to organize such events on a national scale ?

This type of situations warrant different strategies for these different consumer roles. Marketers of paints, automobile batteries, tires , sanitary wares handle these influencers by having campaigns specifically targeting these members. For example , paint marketers organize special events and sales promotion activities for the painters and architects. Automobile marketers also try to influence the workshops to support their brands.


Dishwash liquids have then a difficult task ahead .
First it has to convince the homemaker that liquid form is better than the cake form. Second it has to influence the housemaids to use this product and not to reject it. Proper use of liquid diswash is essential to maintain the value proposition. Liquid dishwash products are concentrates and if the maid uses more liquid, then the product will no longer be economically viable for the homemaker.

Consumer Insight #1 : What are your customer's expectations ?

I just put down my telephone after some heated exchange with my traveling agent. The reason as always about refunds. I canceled my air tickets a couple of weeks back and after a dozen phone calls I still wonder about the possibility of getting my refunds in the near future .

Much has been written on customer service . Researches, articles, books and what not. But still we see the same pathetic management of customer service.

Last week, while visiting my new generation bank which boasts about being the most tech- advanced bank, I had to wait for 45 minutes for getting a Demand Draft. That too in a bank which have an automated queue handling system. The manager was helpless and surprisingly the bank does not have a formal complaint's handling mechanism. I was amused to see that the link for registering complaints in the bank's website does not work !!!!! Hum Haina ???

So is it about meeting expectations or managing expectations ?

Today's Economic Times ' Brand equity has a great piece written by Ms Janelle Barlow titled " Take your customer's complaints seriously ". She is the author of a very relevant book " Complaint is a gift ".

Read the article here : Take your customer complaints seriously

I strongly believe that a firm's customer service quality will reveal only when there is a complaint.How a company handles the complaint is the true determinant of its customer service quality.

Coming back to my experience with my traveling agent, I had certain expectations regarding the service to be provided by the agent. The service provider was not able to understand those expectations. The company may have systems and processes which can delay the refund, but as a consumer, I am totally unaware of what happens inside the company.

The entire issue would not have happened if the service provider gave me the information about possible delay at the point of cancellation. But that did not happen. So marketers should learn to be truthful to the customers while setting expectations.

Its common sense that no marketer can satisfy all the expectations of the customers. But what he can do is to try and manage those expectations.

In the case of the bank , it had built a series of expectation in the consumers through high profile celebrity endorsements and ads. Then at the consumer touch-points it fails miserably . For example the 'service request receipt ' generated by the machine sets the expectation by giving the time taken to attend my request. The time given to me was 90 seconds. Then everything went offtrack .
Marketers often fail to practice the wisdom of Understate and Overdeliver. Most of the time you bring in the customer promising him many things that you are not able to deliver.

Seth Godin has written a good post here : Seth on customer expectations

For the consumer : Never pay for your service in advance. If I hadn't paid my tour operator in advance, things could have been much different. He would have made calls to me and I would have been the king. So if there is an option for taking the service on credit, do it. Because marketers have a bad habit of forgetting their customers after being fully paid.

Please share your views and experiences on the customer service you have encountered.

Book Review : The Last Lecture

Book : The Last Lecture
Author : Dr Randy Pausch with Jeoffrey Zaslow
Publisher : Hachette India
Price : Rs 295


Book Review #6

I happened to come across the name Randy Paush accidentally . I happened to read the Time magazine featuring an inspirational lecture of a Carnegie Mellon University professor who was detected with a terminal cancer.

That hooked me and a Google search on Randy Pausch landed me on the lecture and the book.

The story of Randy was somewhat like a Bollywood movie. A high flying computer science professor at a very young age detected with cancer and then becoming a celebrity with one speech.

Carnegie Mellon University has a lecture series where it ask eminent academicians to make a lecture assuming that it will be their last lecture. The series was aptly named as Last Lecture.
When Dr Randy was approached by the university, he was already diagnosed with pancreatic cancer . So it was destined to be his last lecture.

Like the true American spirit , Randy talked about hope rather than death . The lecture which was uploaded in Youtube spread like a wildfire inspiring millions.
The lecture lasts around 1 hour 45 minutes and time will run fast once you get hooked on the message

Watch the video here : Last Lecture

Randy titled the lecture as " Really Achieving your childhood dreams " talked about achieving what you always wanted.
The phenomenal acceptance of the lecture across the world prompted the publishers to persuade Randy to write a book. The book was written by Jeoffry Zaslow and Randy. Everyday the professor will ride the bike in his neighbourhood and he spoke to Zaslow through his cellphone headset. Thus after 53 bike rides , the book was born.

Ofcourse the book became a best seller owing to the basic life funda that the professor was talking about.

This book was one of the few books I finished reading at a stretch. I felt a change in my self after reading through.
The book is divided into two parts . The first part details the actual lecture he delivered at the Carnegie Mellon. The chapters gives you more insights and background about how he achieved his childhood dreams. The second part gives the Professor's view about ' how to live ' .

What struck me in this book is the following phrase " Time is all you have and you may find that one day that you have less time than you think".

Yes we all know that! . We know that one day we will die so what ? We Indians have a typical way of dismissing the very notion of death.

But there is a big difference between information and realization. When you read this book , if you are lucky ,this truth will be revealed to you.

Another lesson that struck me was about obstacles. Dr Randy likens obstacles to a brickwall. Brickwalls are there for a reason. They give us a chance to show how badly we want something. Only those who want it so badly can scale that brickwall.

He also talks about the basics of better living like
Aiming high
Showing gratitude
Being childlike
Never giving up etc

Although these lessons have been much talked about in different books, I felt that these lessons carry more authenticity coming from a man who knew that his days are numbered.

Last Lecture is a book I recommend because ,more than inspiring, it will bring you back into reality and the present.

Dr Randy Pausch gave the Last Lecture on September 18 , 2007. Although at that time doctors gave him 3-6 months of life, the professor is still alive fighting the disease.