Financial Daily from THE HINDU group of publications
Wednesday, Feb 18, 2004
Financial Daily from THE HINDU group of publications Wednesday, Feb 18, 2004 |
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Marketing
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Standards & Benchmarks Consumerism peddles branded goods as symbols of good life Vinson Kurian
Thiruvananthapuram , Feb. 17 FAST moving consumer goods do not move merely fast in Kerala, some of them even fly off the shelf, as elated manufacturers would vouch. As is famously known, the State has been experiencing a consumption boom and increasing standards of living, thanks mainly to remittances from expatriates. It is another matter altogether that these remittances are often seen contributing to inflation. The State Government has no control over them and cannot use them to ease the fiscal situation. Thanks to the inflow of remittances, people build gaudy houses and buy and stock up jewellery. They are exposed to the international market and are known to prefer premium brands, although those who spend may not always be the ones who earn. But manufacturers could not care less. With the result that the State has come to resemble one huge mall for upcountry vendors to display and sell wares. It should, therefore, surprise no one that even automotive battery manufacturers have found the environs tempting enough. Or ask Mr S. Ramachandra, Executive Vice-President, Amara Raja Batteries Ltd (ARBL). He, for one, seems convinced that the good tidings will "last long, really long." Speaking to Business Line here, he said ARBL has accorded high priority for Kerala, for two main reasons, namely (a) the company is based in the South and (b) Keralites are predisposed to products of the highest quality standards. In fact, according to him, Kerala has come to be recognised as the most demanding among the southern States, which have a reputation for being overly quality-conscious. "Quality products sell easily in Kerala. People are not price-sensitive when it becomes to choosing a product with assured quality. It is a truly demanding market. So much so, it is more or less universally acknowledged that if you can sell in Kerala, you can sell anywhere. And establish your brand, too, in the bargain." Asked to explain the marketing strategy, Mr Ramachandra, who attended the opening ceremony of an ARBL franchisee outlet here, said the company has plotted the business potential for every category of vehicle by every district in the country. The franchisee outlets have the same ambience and feel across all geographies, based on which franchisee territories are delineated. "Today, we have 100 such franchisee outlets countrywide." In Kerala, the franchisee outlets are situated in Kochi, Thrissur, Kannur, Kottyam and now in Thiruvananthapuram. On the contentious issue of used batteries, he said the implementation of the relevant Act has not been progressed satisfactorily for many reasons. A lot of these batteries were finding their way into the scrap market. "Economical and fiscal incentives in vogue work totally against people turning in their batteries to the companies. If you are returning it to the companies, you have got to pay purchase tax, sales tax, even income tax on the money you make. "A second thing working against the programme is that there is not just enough smelting capacity available. So the logistics are not in place. Also, the programme would need huge public awareness. In fact, we have made advertorial films on behalf of the Indian Battery Manufacturers Association that will soon be aired on NDTV. We are glad that even the Centre is cooperating with us in the venture. The Ministry of Environment and Forests has promised us some money to sustain the campaign," Mr Ramachandra said.
More Stories on : Standards & Benchmarks | Kerala | Consumerism
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