ITC, the Indian MNC of the future

Can you think of an Indian multinational which is going to create brands for the world at large and dominate the future?

_ Gopi D., Hyderabad

Gopi, that’s simple.

I put my weight behind ITC, which has stolen the thunder in this space. ITC has done a brilliant job in the market for foods. As more and more categories get covered, existing players are emerging to be seen as fuddy-duddies in this category. Existing competitors need to get more aggressive and bring more of their “in-development” products into the market if this imagery is to be contested. There is a need to fast-pace and fast-track new launches in the foods category. The current sets of products will offer growth within the category, as growth potential from every other category outside will keep going to companies such as ITC. So watch out for this company and what it does in the next several years.

Pepsi has bought IPL rights for five years. I thought Pepsi was off cricket. How come? And how will it work?

_ Rohith Mullick, New Delhi

Rohith, Pepsi has had the image of being a marketing laggard. This IPL association will yank it out of that morass. In many ways, this IPL deal is the sounding of the conch loud and clear to all concerned that the cola wars are not over, after all. In fact, they haven't even started.

The price paid for the deal is a clear indication of strong intent over the next several years. It looks like Pepsi is back, up and preparing to run. In India a cola player can never ever ignore cricket. Cricket is young, fast-paced and harvests the passion of a whole nation of viewers. No other game, or for that matter no other event of any kind, can compete with cricket. Brands that appeal to the lowest common denominator audiences of a large size just cannot do without cricket. Pepsi has realised this. And, therefore, Pepsi prepares for a 5-year future with IPL.

Good for IPL as well, as a relationship with a bottled beverage of this kind is that much more broad-based and dispersed consumer-centric in its approach than one with a real estate player such as DLF. When you are backed by DLF your audience stroke is that much more B2B and niche than when you are with a beverage like Pepsi that is that much more mass and reaches countrywide.

Add one more bit to this. When you have a cola as your sponsor, you have a lot that can happen on the grounds. You can drink a cola and watch a match. Can’t say that for the profile of the previous sponsor!

How is the gourmet food category moving in India? Do you see a future for it as a category?

_ Deepa P. Rao, Mumbai

Deepa, the trend lines of gourmet food in India have only one way to go: up. The idea is a simple one. As people rise in the pyramid of achievement and earning scales are tipped progressively, food that is basic gives way to food that is not so basic after all. Gourmet food is at the pinnacle of the not-so-basic food. Gourmet food grows as an economy progresses and people start tipping upper end income scales.

India has a sizeable chunk of the population, even a population as large as the entire Japanese population that is tipping top-end incomes. Gourmet food has, therefore, a great future in India. And this future does not stop at caviar and truffles alone.

This trend in gourmet food is indicative of a fact. In the developed and developing world at large, greed is seen to be good. Gourmet food is greed-driven. This greed is not crass; it is a refined greed. When people cannot afford to eat too much food of low value, they look for too little food of high value. Gourmet food is best eaten in small measure. In dolls’ plates, even! Sociologically, the big factor at play is the greed. Value greed is a creed in itself!

Café Coffee Day (CCD) has launched a new television campaign, obviously in reaction to Starbucks’ entry. How do you rate it all?

_ Sona M. Mansingh, Mumbai

Sona, I do believe this is a good campaign.

A café in India is essentially a “sit down” place. To that extent, the “sit down” tone and tenor of the piece of CCD advertising works. I do believe the lyrics offer a lot in terms of an anthem feel. The idea is a campaignable one as well.

A big idea in itself. CCD really needs an anthem, and an anthem is the new advertising way to a consumer's heart. Airtel did it, Hero Moto Corp attempted it.

The theme is an anthem. It has tender tonalities of a movement even. It hints at aggressive action-oriented movements. It hints at solving issues by just chilling. To that extent the “movement” plank is a good one to take. It can be taken to different degrees of aggression.

The CCD piece of communication attempts a mild version on the scale of mild to aggressive. While a Tata Tea’s Jaago Re attempts the aggressive, the CCD version attempts the mild. It’s more of a popular and mild cappuccino than a strong and aggressive espresso, if I was to use coffee jargon.

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