Business Daily from THE HINDU group of publications Thursday, Aug 10, 2006 |
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Brand Line
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Brands
Anjali Prayag
"Look at the way Indian giants like Infosys and Wipro are giving the IBMs and HPs of the world a run for their money. It cannot be pure technology output, but also their branding and marketing skills that's giving them visibility."
ARUN SINHA, Chief Marketing Officer of the 85-year-old Pitney Bowes Management Services
Arun Sinha, who's a Strategic Investor and Member, Board of Directors, 24x7 Learning, is credited with the revitalisation of Colgate oral care brands and the launch of the Mercury Sable through innovative marketing solutions. He also launched and developed Basic Cigarettes into one of the fastest growing brands in the past 30 years. Currently, he's the Chief Marketing Officer (also the first) of the 85-year-old Pitney Bowes Management Services and has been involved in re-branding and restructuring its corporate portfolio. Among other awards, in 2003 and 2004, BtoB Magazine named Sinha the `Top Marketer of the Year.' In 2004, his team received Business Week's `Excellence in Corporate Advertising' award. He serves on the Board of Directors for the Direct Marketing Association and the CMO Council. He is also a member of the Pitney Bowes Chairman's Council. He is currently working on a book on marketing and brand building, which will be launched worldwide this fall. Speaking to BrandLine on the changing rules in marketing, he commented on various issues including India's growing significance on every global company's blueprint for the next two years. "There's huge opportunity for manufacturing and services now, therefore, supply is driving the marketing in this country, making it the most exciting place to be in," he says. In other words, having a high market share in India would mean being a world leader tomorrow. He says that while the world is applauding the way Indian tech companies have captured the world market, not much is being said of their marketing prowess. He points out: "Look at the way Indian giants like Infosys and Wipro are giving the IBMs and HPs of the world a run for their money. It cannot be pure technology output, but also their branding and marketing skills that's giving them visibility." Sinha says there has been a huge evolution in India's marketing expertise. The country has transformed from a closed economy into one that can service the global market. "Talent too has become mobile now, resulting in better and broader perspectives for managers here," he comments. Add to this the demographic advantage of the country, and MNCs couldn't have it better. India's young population those between 18 and 35 is equal to the US' total population and is ready to earn and consume. "So there's talent and there's a market here now," he says. So what's his advice for companies that are ready to launch their products for a country whose GDP growth (pegged at 8 per cent per annum) is currently the second highest in the world? "Segment your customers properly, they have changed quite a bit," he advises. His four-point programme for global companies planning an entry here: Mine minds: Understand consumers, their wants and needs. They change with each region, country, language, age and sex. Market the demand: Create a demand for the product before you market it. He says older companies are failing at this stage because they are unable to connect their growth strategy with the market demand. Manage the brand well: Expand and grow the brand on a sustained basis. He says it's important to concentrate on intangible assets like customer relationships and happiness. Take measures to keep employees happy: He believes marketing is not just an external exercise, but is largely influenced by internal factors such as employee satisfaction. "Employees are, after all, advocates of the brand and the company." In addition to these, MNCs have to understand the sensitivities of each country and tweak the brand to attract local interest. "McDonald's and Pizza Hut have attempted this here," he says. Then there are instances of companies which make grand announcements of entering a particular region or country, but fail to follow it up. "Being genuine is important. Ensure that major announcements have to be followed by action, otherwise your credibility is at stake," he feels. Are there any marketing lessons that India could teach the world? "Doubtless, it's in their (Indian companies) distribution network," he says. In his view, Indian companies have the best distribution channels and are managed extremely well. "They have managed to cover the entire country, even the remotest village and town, which very few MNCs in the US or Europe have attempted." The country's highly segmented consumer profile has also led to innovations, like the introduction of sachets. "It's a great invention," he commends. The 2000s will be a decade of customer relationship, predicts this recipient of the `Marketer of the Year' award from the American Marketing Association. Therefore, factors such as sophisticated customer segmentation and varying demands will make marketing more of a science than an art in the years to come, he says.
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