Sunday, November 21, 2010

Retail Snap Shots 01



Some thing happened during current visit to Delhi and I decided to continue my commentary on the business of Retail.

I had gone to Connaught Place on a shoestring budget of Rs.200/- and was hopeful of buying a book to read during my travels. Why a budget of only Rs.200/-? For one - I am not a part of any corporate 'benefit match' to be able buy those high priced books on Management Topics and histories of great corporations. Secondly, I find it is very stressful to read and remember what some Ford once said and how it changed the fortunes of Ford Motors. Perhaps in those days employees listened to their employers, some thing of which I am not sure of these days. These days employees not only do not listen to their bosses but also keep complaining their children don't listen to them. Listening to some one, it seems, has gone out of fashion. Further, I have often come across biographical books on the coffee tables in reception of firms where I go calling. And I have found most of those firms reluctant to part with such titles even for a good cause of educating our students. Perhaps such firms like many others are afraid of educated students. And of course that's another story.


So on this fateful day I was in this book store for a good 20 minutes and had began to loose hope of finding a suitable book with in my budget. Most of the titles catching my eyes were priced several times my budget. I had begin to doubt my choice of book store (more than 2000 sq. feet retail space). Just then I saw as the owner was busy scolding an aged employee about slow collections and his method of working. I found it to be a little out of the way to shout at an employee (for such reason) on the floor of the shop before customers. It is a standard practice in un-organized retail businesses to loudly shout at an employee for all ills of the outlet that a customer points out. Then I saw a rack labeled 'Fiction' and found it to be displaying books on Central Excise Laws and other such Law Titles. I asked the store attendant it all those books on law amounted to fiction? He did not catch the intended pun and simple replied, 'Galt haiga jee!', revealing his rustic Punjabi back ground.

Moving further, my hand rested on a title "Retail Business Kit for Dummies" and I repeated to myself- dummies know themselves well and don't ever attempt a Retail Business. And immediately saw the folly of my statement. In India, Retail, it seems is a "Dummies' Delight". As I was visiting a large book store in heart of Indian Capital and they were getting away with whatever bungling they did. A few minutes later I discovered this book to be going through a Retail merchandising Cycle, Rs. 299/- title was being offered at Rs. 89/-, as the publisher was intent upon clearing the stock. I was happy that my search for a book under Rs.200/- was over. But I did not become owner of that book until the attendant, the owner, and one of the cashiers had, one by one, scrutinized me suspecting I carried a sticker from the publishers announcing the 'offer' and had conveniently placed on the front of the book by taking it in to a remote corner. Once they had satisfied themselves they allowed me to take away the book upon payment of Rs. 89/- and I walked out of the store with a feeling of 'having earned' the book. Once outside, after breathing some fresh air, I recognized the tactic. The ridiculously low priced book was another VM technique designed to offer a bait (to visit again) in disguise.

Finally, if you are in Retail, do not think that you are a dummy; and if you actually are a dummy, do not be afraid of getting into Retail, secure in knowledge such books and many other useful titles are available offering the Retail know how.


Navendu Mahodaya


Wednesday, October 20, 2010

Faith of an Engineer

Faith of an Engineer

[Author Unknown]

I AM AN ENGINEER, in my profession I take deep pride, but without vainglory; to it I owe solemn obligations that I am eager to fulfill.

As an Engineer, I will participate in none but honest enterprise. To him, that has engaged my services, as employer or client; I will give the utmost of performance and fidelity.

When needed, my skill and knowledge shall be given without reservation for the public good. From special capacity springs the obligation to use it well in the services of humanity; and I accept the challenge that his implies.

Zealous of the high repute of my calling, I will strive to protect the interests and the good name of any engineer that I know to be deserving; but I will not shirk should duty dictate, fro disclosing the truth regarding anyone that, by unscrupulous act, has shown himself unworthy of profession.

Since the Age of Stone, human progress has been conditioned by genius of my professional forebears. By them have been rendered (usable to mankind) nature’s vast resources of material and energy. By them have been vitalized and turned to practical account the principles of science and the revelations of technology. Except for this heritage of accumulated experience, my efforts would be feeble. I dedicate myself to the dissemination of engineering knowledge, and especially to the instruction of younger members of my profession in all its arts and traditions.

To my fellows I pledge, in the same full measure I ask of them, integrity and fair dealing, tolerance and respect, and devotion to the standards and dignity of our profession; with consciousness, always, that our special expertise carries with it the obligation to serve humanity with complete sincerity.

Our ability to increase productivity and at the same time cut down inefficiencies and costs and this is an engineering problem. But technology is not all; engineers also play important roles in management and policy making. As one authority has written:

“A substantial share of responsibility for the management of American industry has habitually been given to he engineers, and this share has been increasingly marked during the last half century. It is no longer sufficient for an engineer to be just technically competent; he must be prepared also to make decisions on matters of business policy based on all the manifold factors involved in the conduct of modern industry…. Here is a challenge to the engineer. You have a vital role in the operation of our national economy, both as technical and as administrators.”

The engineer stands ready to meet this challenge today and in the years to come, confident in his faith in India’s future and in the ability of his profession to meet whatever needs that future may demand.

[This piece was presumably written in early 1950s. I found in a cyclostyled sheet among my father's papers. He was an Engineer. Try to replace the word Engineer by the Vocation you are in, I trust it will fit through a few minor alterations. Then you might like to use it to improve the sensitivities of those who work with you.]

Saturday, October 16, 2010

Saina's Gold

India's medal statistics stand tall and impressive at 38 - 27 - 36. I know what some of you are thinking. Yes, in terms of a beauty pageant lingo, it sure is very impressive. Jokes apart, our sports-persons have done country proud.

There are many people who have expressed that this medal tally is small compared to what money was sanctioned or the size of our nation and some such ways of comparing. Sure every one is entitled to an opinion. And I have the following to add to those opinions already in circulation:

  • I saw a higher degree of sportsmanship spirit among all Indians- Public, Participants, Volunteers and Viewers. No, I m not suggesting- "let us forget and forgive' as far as corruption in organizing is concerned.
  • I saw Indian Winners weren't hungry for lime light in media and that is a very good trend.
  • Every Indian can learn a thing or two from Saina Nehwal. First could be, how to look proper & smart and same time not appear to be conspicuously glamorous.
  • Other thing to be learned is how to keep cool when chip are down. She kept her cool when she was about to loose the Gold, towards the end of the second game.
  • Next thing Saina gave us is- 'Keep working harder with intensity and supreme focus to meet the challenge of the situation before us and not to worry'.
  • If Mahabharat's Arjun did exist on this land once upon a time, this time round he has taken birth as Saina Nehwal for she personifies all his qualities while she is at work. And in that respect her Gold Medal is just another beginning of an era we shall all remember for a long time.

Finally, let us take these and such other lessons to other Indians and help each other grow the way our sporting stars have grown in past few years.

navendu mahodaya

Tuesday, September 7, 2010

Reality of Retail
















This three-way Chess Board depicts the stark reality of Retail. It is a game played between three players- Customer, Staff & Management; where the Goods Displayed are the different 'Pieces' with which the Players must assert.And for a successful game all three must win.

Wednesday, August 18, 2010

Talent is Multidimensional

Recently I saw Deepika Padukone in a Talent Hunt Show. She was on her roller skates and performed several dance movements in a flawless manner. I was awe struck. This is why:

  • Deepika came to lime light with her stint in Badminton, which she probably picked up as her father is an ace Badminton player.
  • If she learnt roller skating as a child is not known, yet in my view that is an additional plus for her. And now, that ability to dance like a consummate performer you often see on television took the breath out of me.
  • From Badminton, she went on to become a fashion model, adding another dimension to her talent.
  • Then she switched over to an acting career.
  • All these happened very quickly, with in a some 3 - 4 years of her switching from Badminton. May be actual number of years is some what different.

You can call her very talented, a quick learner and a born star, clap, cheer, become a fan, seek auto graph, dream hugging her. OR you can take a leaf out of her life to study her DNA, the stuff she is made of. When you do that, you will find, she is another "next door girl" who happened to shape her talents by letting those talents out.

People who show such diversity of high grade talent, have learnt "Learning" very early in life. They stay away from "Faking" and focus on immediate challenges. Instead of worrying about what will I wear on the Red Carpet, they get busy doing some thing that would take them there. I am awe struck that Deepika has mastered this quality. I know very little about her, yet I am sure, she has this knack of learning what makes a career switch successful.

Each one of us has a talent that we can be proud of. It takes a while to discover it. It may even take decades. The task is made difficult by us alone, some what automatically. As young children, we were very impressionable. We did not know it - then. We saw some thing being done, took fancy for it and declared, I am going to be so-n-so, with out going into the feasibility of it. The other common folly is, we ignored our other interests, skills, or talents. We just focused on that "acquired interest" and struggled to make it work. If the choice was correct, it worked; otherwise we blamed it on the good old "LUCK".

Here I wish to share a technique I have often used. I have found myself mediocre in many areas. I failed to excel and suffered the consequences. ["Suffering the consequences" would be more appropriate.] How do I overcome this situation? I focus on only one area of endeavor at a time. I focus so intensely that I some times can not even recall details from my other efforts. People smilingly help me out. People have also told me, 'it happens with us all, age sure catches up you know!' This intense focus creates energy, abilities that make my task simpler when I switch my area of effort. This intense focus (in a diversion) creates those spaces [in my mind] that improve my ability to handle my routine tasks as well. May be you have another way to explain this phenomenon, yet you can not deny the benefit accrued.

The point I wish to make is-

We all are blessed with multiple set of talents. Some of us become obsessed with one of those talents. Some of us are pressurized to focus on one of those talents. Please be aware that other talents haven't deserted you. Those talents too are with in you. Also, please be aware, that unused talents too are trying to come out in open, and in such an effort may be blocking the path of the expression. Allow them some time and let them be out, blocks would be a thing of past - and pure joy shall prevail.

Sunday, May 2, 2010

Empower! What else?



Do you want to lead a firm that makes highly differentiated products which are specialty protected; where the work force is involved and highly flexible; where customers line up and profits are pouring? No, it isn’t a copy of an employment ad. It reads like a dream. It would be your reality, if you were to work towards it. How? By Empowering your work force, what else?


Empowerment is not a new term. It is perhaps as old as civilization it self. I came across a line by Vivekkanand, “Cure of weakness doesn’t lie in thinking about Weaknesses. Instead it lies in teaching the Weak about the Powers they already have.”


If your response to such a proposition is- “If I tell them how good they are, then surely they’d demand more money. And I am not going to act on such an idea that leads to giving them more money!” Such a response is an Impulse Response. Try to recall, how many of your impulse purchases have been worth the money except for the joy of the moment. Apart from that Kala Khatta Baraf Ka Gola, a very few I am sure. So what happens when you disregard such an impulse that came from influences you carry as a result of indoctrinated in the old school of business, where Katouti is the only acceptable principle. Of course nothing fruitful happens. How about this response- “OK, if you want more money, then help me make more money and take your pick.” It does begin to sound better, isn’t it? With a little diplomacy and conferring you can have a new wave of profits hitting your shore, and there’s nothing unethical about it.


Before we move ahead, let me share some details of a Howard Business Review article I read in Times of India, some 15 – 16 years ago. It was about a certain manufacturing company that was owned and run by a woman for nearly 25 years. She was deeply involved in every thing about the company. She would attend to every small detail, from billing to maintenance. She made all the decisions. She herself conducted all the negotiations, did costing and even production planning – all by herself.


If she is coming across as an autocrat, then here are more facts. She saw her employees as family. She arranged costume parties for them. She loved listening to their personal woes and kept close track of employees’ children. It is a text book case of a benevolent, maternal autocrat. She also misbelieved that her employees loved her. Here I am reminded of an Indian Industrialist who is a devotee of Lord Ram. His favorites tell him that he is Lord Ram and each one of them is humble Hanuman. How such a charade would help the organization is not known but it is clear that employees tend to imitate such mythological relationship when there is no other clear agenda before them. Then they begin to take unproductive liberties with in the purview of such relationships and that American firm too was no exception. If any one didn’t have the right perspective, it was the woman owner, and for employees it was a joy ride.

Like many other American firms this one too had a Union of which the workforce was member. While the workforce did every thing to appear in love with the female boss, the union was ruthless in their pursuit of wage growth for its members. After all, the inflationary forces and growing up kids in the families dictated such a pursuit may be followed to the hilt.

For past several years, the firm was facing tremendous pressure on margins due to several of their competitors did not have unionized workforce. It was a tricky situation. If she did not cut the costs, she was doomed, and if she tried to cut the costs, union would call for strike and then again she’d reach the same spot. What happened under such circumstances happened in this case too. Under pressure of the situation she sold out. New owners wanted to learn the threads of business to which she agreed by staying around for a monthly fee. What then followed is a tale worthy of a movie script.

New owners were slow learners. Everything, all the organizational knowledge was in previous owner’s head, and she too didn’t have the correct perspective because of which she sold out. So what followed was a free for all conflicts, abusive and insulting episodes, loosing customers to competition, misunderstandings leading to loosing of key employees, and finally a strike call by union. Though the new management was clever enough to break the strike on the merit of the situation, but gone was the old good will between the owner and the workers. New owners decided to convert the adversarial relationship in to a productive one through workers’ participation in management and sharing of profits. In their vision, it would lead to empowerment of work force, but before that many hurdles were to be over come.

The work force that was darling of the previous owner and had called a strike against the new management had tasted defeat in the process. The resultant bitterness could not be wished away. It wasn’t a happy situation. New owners’ move to ask workers to participate in the management was being resisted. The first hurdle they set us was a syndrome called, “That’s not my job!” New owners would ask, “How to cut down on waste?” OR “How to allocate over time for this delayed order?” They would get replies that amounted to- “That’s not my job (to show you, how to)!” After all the old owner used to figure all such questions, though based on her experience, and never bothered the work force with such questions that would force them to think.

But the persistence paid off and such questions when answered were actually empowering the work force. The ensuing enthusiasm of the work force was matched by profit sharing program (by the new management). The program was implemented in a transparent manner. It involved sharing of very confidential data and information. The firm’s profits grew, and the worker’s trust in management also grew by the same measure. So much was their trust in the management and the profit sharing program that some time later when they were given option to choose between wage hikes or to continue in the profit sharing program, they voted in favor of the later. The clock of empowerment has run it’s full circle.

If you are considering a formal empowerment program, please check for the following essential ingredients and then embark the path:

• Clean and healthy working condition.
• Reasonable remuneration.
• Respect from colleagues, superiors and management.
• Opportunity for using work and work environment for personal growth.

Finally for those who like to entrust their future to their luck, some one has aptly said-

Fortune befriends the bold!



Wednesday, April 28, 2010

What is Benchmarking?



Justify Full
First introduced by Taiichi Ohno, the legendary & brilliant Japanese manager-turned-consultant behind Just-in-time System of Inventory Management, it is a continuous process applicable in all functions and levels of Business that involves finding and implementing best practices (any where) in all areas that influence customer satisfaction. It is helpful in management as it provides new ideas and conviction to implement those ideas.

According to Wikipedia, Taiichi Ohno was a prominent Japanese businessman. He is considered to be the father of the Toyota Production System, which became Lean Manufacturing in the U.S. He wrote several books about the system, the most popular of which is Toyota Production System: Beyond Large-Scale Production. Born in Dalian, China, and a graduate of the Nagoya Technical High School (Japan), he was an employee first of the Toyoda family's Toyoda Spinning, moved to the motor company in 1943, and gradually rose through the ranks to become an executive. In what is considered to be a slight, possibly because he spoke publicly about the production system, he was denied the normal executive track and was sent instead to consult with suppliers in his later career.

Ohno's principles influenced areas outside of manufacturing, and have been extended into the service arena. For example, the field of sales process engineering has shown how the concept of Just-In-Time (JIT) can improve sales, marketing, and customer service processes.

Once decided to use, Benchmarking involves using a model organization against which our own organization is reflected upon to find areas of action.

Benchmarking as proposed by Taiichi Ohno involves three vital steps- Analysis, Comparison and Synthesis. Analysis: An issue under consideration is dissected – dismantled, to arrive at the various constituents that go into making of that Issue; shall we use an industrial term here Components. Comparison: The constituents or components thus found are compared with those of the model already selected. The differences or the gaps thus obtained provide the basis for next step. Synthesis: The ideas that emerge in the Comparison stage are examined for affinity between them and using those ideas which collectively fuzz together a sense of direction emerges that becomes the guiding force.

In essence the direction thus determined becomes a collective idea based upon the out side realities rather than an insider’s gut feel. This very fact helps drive change in belief systems, behaviors and achieve a desirable focus of respective teams.

Based on the need different organizations may follow one are all forms of this tool: Strategic Benchmarking; Product Benchmarking; Process Benchmarking and Performance Benchmarking.



Monday, April 26, 2010

Are you a Mirchi Seth?

Narayan Murthy, the poster boy of Indian Industry, has often stated, “When the work force leaves for home in the evening, it is the challenge of the management to get them back in fighting fit shape, the next morning.” Looks like, INFOSYS had recognized this in early and what miracle we see today is the result of mastering this simple idea and then to take things any forward. After Murthy said this, lot has been done, reported, suggested, prescribed and reflected upon this topic. Various expertise streams like Employees Engagement, Human Capital Reviews, Talent Management and what have you, have come into existence. The exact words defining such terms may be different from what has been stated by Narayan Murthy but if you think that the situations in your firm demands similar attention then please explore the following text.


While the idea may sound simplistic yet I have noticed some very crude solutions to be in vogue. A few businesses and manufacturing units skip a month’s salary. They pay in the third month, the first month’s salary and thereafter follow the cycle. There is another variation, hold two month’s salary. The employees become tight fisted for a month or so and then begin to follow the cycle with a sigh of relief, after all money is coming. They begin to believe that it must be very bad out there, so why not keep the job by attending it next day. Almost similar to what Narayan Murthy stated or is it any different? There are firms and companies who use other variations of such devices, they keep expenses or incentives or bonuses pending; and some give promotions but release the letter to that effect only after say 4 or 6 months’ delay.


All these sound amusingly effective tactics and even the workforce accepts and there are no waves in the normally calm waters. But, while reading the above, if the taste in the mouth started getting any sour then you could certainly see that such tactics are self limiting one – they do not provide any avenues for growth, a much desired Product of Business or Industrial Activity. The work force considers them selves prisoners of circumstances and negativity, flattery and nepotism prevail. Over the years, I have observed from a distance, many commercial and industrial enterprises loosing in the long term. And owners of such enterprises are forced to find profits elsewhere; some play stock market – currency futures – commodity exchanges, others the real estate, yet others have ventured into education, directly or through a proxy. They can afford to act in a cheap manner, in their chosen business, as their real profits come from some place else. This is some what similar to the story of a Mirchi Seth, a character in Amir Khan starer and a block buster movie Sarfarosh.


Some one who has come out of such situations has the following to share as do-it-yourself solutions:

  • Manage your executive time by doing the most productive thing at any given time. This may involve less number of business meals or entertaining. Fixing an earlier time (say at 6:30 pm instead of 8:30 pm or later) to go back home. Take part in only those activities that add value to the activity and delegating the rest.
  • Change operating beliefs of your subordinates by communicating with them more intimately. Some of the popular and changeable beliefs are: More efforts will yield more out put. Quantity of out put is more important than Quality. If I let or help my subordinate handle this task, then how will I retain my importance at work place? When changing such beliefs for others, encourage them to find out what their common sense is whispering in their ears.
  • The entire communication to be done with sole intent of figuring their beliefs and changing them to a more productive one. Later, they may be encouraged to examine it themselves and inform you, ‘How they changed such-n-such belief!’
  • Jack Welch, former Chairman of GE has often stressed on keeping the work place environment similar to that of a small Grocery Store. That intimate work culture, that sense of purpose in handling each transaction. Avoiding the prevalent small shop ills though not stated yet implied.


Way to change is to first change yourself and then lead by being a good example!

Thursday, April 22, 2010

God created Advertising...



God created Advertising,

so that in the interlude
Business could enrich its Salesmanship!

Salesmanship is a 3 way street,

TO-n-FRO or FLY!


Wednesday, April 21, 2010

OPERA OF SOAP BRANDS- WHAT IT IS WORTH?




One Sunday in 1879 Harley Proctor, one of the founder of the candle and soap firm P&G, heard a sermon based on the Forty-fifth Psalm, "All thy garments smell of myrrh, and aloes, and cassia, out of ivory palaces." The word "ivory" stuck in his mind - and became the name of the firm's white soap.


Proctor had great ambition for his product. But it was a commodity. He was an inquisitive young man who decided he was going to figure out a way to differentiate his product. How does one go about doing that? By simply going to the store where soaps were sold and observing what went on over there. Proctor came to know the housewife bought the soap to clean herself, her family and her home.


He had a cousin who was a chemist. He requested his cousin to analyze his soap to see how pure it was. Cousin reported it is "99 and 44/100 percent pure". All the soaps were the same but Proctor decided to capitalize on this knowledge.


In December, 1881, P&G ran their first Ivory ad stating that the soap "floated" and that was "99 and 44/100 % pure," a dual claim which has become one of the most famous ad slogans ever.


Ivory was a remarkable product in a time in which most soaps were yellow or brown, irritated skin, and damaged clothes. The fact that it floated had practical value to those used to being frustrated by trying to find their soap in the bath. Ivory's brand name and its distinctive wrapping, gave customers confidence that they were getting the mild, gentle soap they had always desired.


In 1882, Proctor spent $11,000 in a national ad campaign that resulted in high level of brand awareness, and customer confidence that the manufacturer was backing the product and would stand by it.


Then in 1885, a yellow soap named Sunlight, when introduced to dreary, sun starved England, became the start of Unilever, now one of the largest firms in the world. Unlike Ivory, however, Sunlight gave way to other brands, such as Lifebuoy, Lux, and Rinso.


P&G demonstrated its commitment to Ivory's brand equity during the depression. In the face of tremendous economic hardships, P&G resisted pressures to reduce advertising. In fact, in part by sponsoring "The O'Neills," a radio "soap opera," Ivory doubled its sales between 1933 and 1939.


The loyalty and market presence that Ivory had built was challenged in 1941 by an Ivory clone called Swan from lever Brothers. It was billed as "The first really new floating soap since the Gay Nineties." P&G reacted with aggressive advertising to protect Ivory.
Without any clear product difference, Lever could not dislodge Ivory, and ultimately withdrew from the market.


In few other companies is the power of branding so apparent. Without question the key to the success of P&G is its commitment to the development of brand equity, the brand management system that supports it, and the ongoing investment in marketing that sustains it.


There are a few publicly available numbers that allow a crude estimate of the profits that the Ivory brand name has provided to P&G over the past century or so. Just over $300 million was spent on U.S. measured media during the ten-year period from 1977 to 1987. It is estimated that during this period measured media was about 75% of the total advertising at P&G. If similar ratios hold for Ivory products, the total Ivory advertising expenditure would be around $400 million.


Assuming an ad-to-sales ration of 7% (the ratio for P&G as a firm ranged from 6% to 8% during this period), worldwide sales of Ivory products would have been $5.7 billion. Assuming an exponential sales-growth curve since 1887, the total sales of Ivory products since Ivory was first introduced would be around $25 billion. Assuming an average profitability of 10% (the average profitability for laundry and cleaning products from 1987 to 1989 was 10%), a reasonable estimate of total Ivory profits would be $2 to $3 billion.



[N. B.: Much of this text has been taken from a news paper article published around 1994. I do not have the article to accord the credit due to the author. If any reader is able to recall, please communicate so that due credit may be accorded.]



Tuesday, April 20, 2010

Sell it like Shahrukh...with Pride

It is common for celebrities to sell products. They endorse a Brand, they act in the commercials, they take part in promos, whatever, it effectively means, they are selling it. So whenever Shahrukh Khan talks about his job as such a Salesman; almost all the times I can sense Pride in his voice. May be taking Pride in ones work comes easy to a star or a celebrity or may be it requires some effort some place.


I have often wondered if same is the case with every salesman in the field who represents a Brand. Not every one says, with that sort of Pride, "I sell.....". And there lies an opportunity. I keep quizzing the salesmen, wherever and whenever I bump into one. Recently while at a Mall in Indore, I saw some one wearing Coke Logo above the breast pocket of his shirt. I stepped aside and asked him, "Do you Like Coke or do you Sell Coke?" Among the various choices he had as an answer, he chose to say it emphatically, stressing each word by taking a long pause between each of these words: "I SELL COKE!" Some Pride it was!


Next day at a Bank, I came across a person carrying a writing pad which had an advertisement of a famous brand of Hosiery. The advertisement was rather small but their slogan was very prominently printed. I asked the gentleman carrying it if he was a distributor of that Brand of hosiery? He said, 'No!' and went on to add, 'Such pads are available cheaper in the market'. He said further, 'Companies desperate for visibility are using almost any place to make their slogans popular.' he made it sound like a cool arrangement, or may be it isn't all that cool. Such indiscriminate use of Advertising Resources has not only adverse effect on the cost of the product, it has an adverse effect on the moral of the salesmen. The catch lies in thinking. Many business owners think ad spend as Asset (right but not always) and expenditure on salesmen a Liability. Where as in every business, "Salesman is the ONLY ASSET and everything else is LIABILITY!" I can justify this line, any time.


When Salesman makes a call, he carries with him (among other things) an invisible package of information, knowledge, bonds, emotional triggers, attitudes. The emotional triggers and bonds he transfers to prospective customers get communicated to public at large. And consumers and users often reflect the same behaviors originally transmitted by the firm's Salesmen.


Take for example, Sales Training. I am reminded of a recent encounter with the owner of a Retail Chain. He says, I train these boys and girls only to the extent they can follow my instructions. If they get trained to a higher level, some one else will take them away. There are some (500 or more) persons in his employment. Imagine 500 people waiting for instructions, not able to use their own head. Not free to think and act. Remember the expression, "An empty mind is devil's workshop!" What level of Pride it can lead to. The Pride of a man who doesn't go to bed empty stomach. What sort of feelings such people will communicate to their Customers? Customers may talk to such employees but bonds will be weak & flimsy and not deep and friendly. Such customers will be polite to those salesmen because those customers are actually polite in their real life.


When a person takes Pride in his job, he radiates such confidence that really transforms prospect's behavior. This is a confidence that doesn't come from using an expensive car, wearing expensive clothes, carrying chick accessories and operational assets, but it comes from deep understanding of the task and Pride of having done a job well. One can not wish and acquire such Pride, one needs to earn it, and there are no exceptions to this.

Friday, April 16, 2010

How to climb down the Advertising Tiger!


In a world where there is too much to do and too little to earn, the ad spends have come to assume a form of notoriety and even vulgarity in some instances.

The only way around is- try touching base with basics of business. Peter Drucker once said: There are only two things a company should be doing, Innovation and Marketing. While Innovation involves R & D orientation and commitment, Marketing automatically emerges a subject worthy of top management's attention. And through this the top management may also provide direction to R & D efforts with the organization.

While at Marketing, let us see what famous Gurus Al Ries & Jack Trout have to say: Marketing is not a battle of Products. It's a battle of Perceptions. Therefore, the primary task of marketing department is to position the product in the minds of Prospective Customers. They add, Positioning is not what you do to the Product. Positioning is what you do to the mind of the Prospect.

Having identified the task of Marketing- Influencing the mind of Prospective Customers, Advertising immediately props us as a clever-n-quick fix solution. This is because; the advertisers perceive that it is the easiest way to influence the minds of prospective customers. "I can sit back while the Advertising Agency, Media, Content Providers, and the Prospects participate in my show. Also the related expenditures are carefully connected to the ability to generate customers' attention, through devices like ABC, TRP, or TRM and their impact on Circulation, Multiple Readership, Viewership, Aided Recall or Unaided Recall, and so on and so forth. All this is well known to the consumers of advertising.

Advertising Men go to the extent of fishing out statistics like, "India has some 17% of world's population and we have been able to come up with ONLY 1% OF THE WORLD'S AD SPEND."

It is a scary situation, for Brands are already overloaded by the burden of Ad Spend like a 9 Tonne Capacity Truck carries a cargo far in excess of 17 Tonnes. The imminent break down does not happen is a miracle yet the threat looms large. Those stunned by Admen’s statistics may please note similar statistics exist for every sector like: Per-capita consumption of Energy, Lubricants, Internet Surfing Hours, Health-care Facility, and so on and so forth. Once we pay attention to the statistics, the issues get blurred and we loose sight of objectives, get carried away and start searching for more funds to support next round of Ad Blitz.

The trick of climbing down the Adverting Tiger is concealed in the published literature of Advertising. Here is HOW of it:-

Let us see what the pioneers of Advertising Industry faced or experienced in those formative years of Advertising and what they have said. Here I am reminded of what Mr. J. Walter Thompson encountered while traveling in a New York local Train. Here it is in words of none other than Mr. James Webb Young:

QUOTE

One winter night, going home, he found himself seated next to a shabby old man, very genial and talkative.

"What is your business?" said this old codger to Mr. Thompson.

"I am an advertising man" said Mr. Thompson.

"Why," said the old fellow, "so am I! What's your beat?"

"I am down on Park Row," said Thompson, with some dignity.

"Well now, ain't that some thing!" exclaimed the oldster. "That's where I am too, and I like it fine. But ain't it hell when the wind blows?"

UNQUOTE

Just like the above conversation, Advertising is a much misunderstood term. People tend to interpret it in ways that is most convenient for their cause. J. Walter Thompson took trouble to clearly define an Advertising Man: He who has the knowledge, skills, experience and insights to advise the advertisers how best to use advertising to accomplish their objectives. And to execute advertising required to do this.

James Webb Young takes a leap forward to define advertising.

QUOTE

A famous and fruitful definition of advertising itself used to be "Salesmanship in print." Today it needs an amendment. To "in print" would have to be added "on the air."

And Salesmanship is the art of influencing any kind of human behavior by putting the proposition forward in terms appealing to the other fellow.

UNQUOTE

Therefore, when Advertising means- Salesmanship in Newspapers, Magazines, Direct Mailers, Radio, Television, Bill Boards, and below the line activities; why not pay attention to the Salesmanship itself. This is easily done by persuading your front line Sales persons to improve their Selling Ability to match at micro level the effect a TV Commercial or a Radio Spot has on macro level. These Sales persons have the potential to do it.

Wednesday, April 14, 2010

Theaters of Excellence



"All that we see or seem; is but a dream within dream."
Those are some very famous words.

I have always wondered as to "Why the dream destinations attract people?" Is it some thing inside those people or it is in those destinations or both or something else.

Trust me, I did not have any answer until a friend came back from a trip. She was describing her experiences. While listening to her, it dawned upon me that she was describing the places she visited - the dream destinations - as Theaters of Excellence.

It seems, people she came across, the actors - the players - the participants - the workers - the vendors - the drivers - the cashiers - the managers - the stakeholders; everyone appeared to treat their respective positions as a part of a grand show. They play their respective roles in an orchestrated manner. They create their own dream world with in the larger dream called universe. Being their own dream it always works out. It started fitting in to the void of several years as to why people are attracted to dream destinations; because those are Theaters of Excellence.

So if I could DREAM my work as a Theater of Excellence and act accordingly then I would be able to attract others to me, my purpose, my priorities and at the same time offering them satisfaction of dealing with Excellent Environment.

Isn't it a dream we weave all the time? So why not begin by- "Visualizing My Work Place as a Theater of Excellence"

Finally, take a look at this anecdote about an ancient Theatre of Excellence-

Around 400 BC, Phidia, the greatest sculptor of ancient Greece was commissioned to make that to this day stand on the roof of the Parthenon, in Athens. They are considered among the greatest sculptures of western tradition. When he submitted his bill the accountant said, "These statues stand on the roof of the temple, and on the highest hill in Athens. No body can see any thing but their fronts. Yet you have charged us for sculpting them in the round that is, for doing their back sides, which nobody can see"

"You are wrong", Phidias retorted. "God can see them".