The Survivor Brand
Jack Welch of GE had said in his famous book “That if GE cant be No1 or No 2 in the Business Category its Operating in, its not Worth Continuing the Investment in that Category “ Well GE is a Giant Organisation & can afford the Fire Power required to back these claims, But every Organisation cant do that
Every Organisation that enters a Market may not always strive for the No1 – No1 2 spot, Rather they would be content making their place in the Market. The Laggards or existing Players,May still be thinking in terms of growth in Market share & Bottom Line & keep the cash flowing. I am sure not many of us would spare much thought for the strategy that an existing laggards in the Market, or Pra # 6 or # 7 Bran would be thinking, or probably a new entrant
The reasons for remaining in the market despite such stiff competition may be many for the Laggards or New Players –
The Volume of the market may be too big too ignore
Growth Potential of the Market may be Impressive
The Category may seem to be the Sunrise industry for the years to come
Profitability may be highly exciting
Simply put, The Category seems to Lucrative to Ignore. At the same time, The Entry Barriers to the Market are Huge. Take Example of the Existing Mobile Handset market in India. At Last Count there were more than 250 Brands Registered in India, some operating at the Regional Level, some have gone Pan India, Like Lava, Lemon, Karbonn, Winncom – MicroMax being the harbinger of the evolution in the Mobile Hansdet Market. Fathom this, The Mobile Handste market in India is a whopping 120 Million Units per year, Thats really Huge & am sure any Group of Indigenous entrepreneur hearing that would Like to Jump the bandwagon
The slew of Indian Entrepreneurs setting up Mobile Handset Brands, imported primarily from China, is great example of that....Importing Highly Feature Loaded Handsets, at a very Low price, creating New Customer Segments & we have a revolution at hand.....Qwerty Keypad, which was being positioned by Nokia & RIM as a Premium / Corporate Kind of a Product, for checking e mail, was exploited to the hilt by the Indian Brands, Positioning as a great SMSing feature for the young Teens
Right Now the slew of the Local Brands is riding the bandwagon of Low Cost, Loaded Features (Consumer Benefits, Smart Phones in the range of 3999/ onwards are available in Most Local Brands today) & a Robust Distribution structure....Thanks to the Evolution & Transition of the FMCG Industry leaders to the Lucrative Telecom Sector....Thats a Fact of the Indian Telecom Industry, Most of the leading FMCG Industry stake Holders, have shifted to telecom.. Be it Top Notch Professionals or the Leading Distributors / Stockist of FMCG, all have slowly transitioned / adopted to the Telecom Game
Whilst the distribution reach achieved by Most Local brands in such a short span of time is enviable..While the Credit & Logistics, 2 most vital Parameters of this business, have been mastered by the MNC giants, Nokia & Samsung, with clearly defined Process & Parameters, it is the agility to respond to Market & the Flexibility to adapt, which has helped the Local Brands also gain quick access to the Market. With some of the Promoters of the Regional Brands, being strong & Influential People & using personal persuasion than a documented Organisation Chase
However there are a Few Challenges that might be overlooked & Ignored in this excitement
Consumer Service standards are still very Low in the Industry – Most Brands are still Operating with the 3rd Part arrangements
Very Ltd R&D to bring the latest Cutting edge technology to the Consumers
While the Distribution structure is pretty robust, the Local Brands have huge work to do to create the Retail Infrastructure & the Consumer Experience
One of the Key reasons for Nokias rise in India was its ability to Offer unmatched Consumer Experience via its Retail Infrastructure – NPDs / Retail Showrooms
Local Brands need to get out f the Price war sooner or later
o Pick up any Industry in India- The Top 2 brands are always the Highest Priced
o Price war cant be Played for too Long especially against Giants, who can flex every bit of the Financial Muscle when required
o Need To have Clear Positioning for the Brands defined
Apart from MicroMax, None of the Brands are trying to come up with a Clear Positioning statement for the Consumer
Come to think of it, There is a Clear Positioning for most of the leading brands today Blackberry, Apple, Samsung. Even Micromax is trying to create on, But the Other Local brands don’t have any yet...All of them seem to Offer the similar Positioning in the minds of the Consumer – Great Features, High Battery, dual sim, Qwerty & all in the same Price range
There seems to be very Ltd differentiation – The above mentioned are only how one can create the Differentiation – Service reach & quality, Retail & Consumer Experience (The Mobile Handset Industry , now needs to emulate the impeccable FMCG retail Model), R & D, Green Initiatives – Coporate Social Responisbility, Or Massive Brand Awareness –
Brand Awareness - Celeberity Endorsement, come at the next stage, once the Brand has established itself at the Ground Level, with Stakeholders, Consumers.. The Iconic & Legendary, Amitabh Bachchan , is the Brand Ambassador for One of the Brands Called Zen Mobiles ... whats its done for the brand, remains to be seen
Thats a Question the Survivor brands need to ask themselves ?
Jack Welch of GE had said in his famous book “That if GE cant be No1 or No 2 in the Business Category its Operating in, its not Worth Continuing the Investment in that Category “ Well GE is a Giant Organisation & can afford the Fire Power required to back these claims, But every Organisation cant do that
Every Organisation that enters a Market may not always strive for the No1 – No1 2 spot, Rather they would be content making their place in the Market. The Laggards or existing Players,May still be thinking in terms of growth in Market share & Bottom Line & keep the cash flowing. I am sure not many of us would spare much thought for the strategy that an existing laggards in the Market, or Pra # 6 or # 7 Bran would be thinking, or probably a new entrant
The reasons for remaining in the market despite such stiff competition may be many for the Laggards or New Players –
The Volume of the market may be too big too ignore
Growth Potential of the Market may be Impressive
The Category may seem to be the Sunrise industry for the years to come
Profitability may be highly exciting
Simply put, The Category seems to Lucrative to Ignore. At the same time, The Entry Barriers to the Market are Huge. Take Example of the Existing Mobile Handset market in India. At Last Count there were more than 250 Brands Registered in India, some operating at the Regional Level, some have gone Pan India, Like Lava, Lemon, Karbonn, Winncom – MicroMax being the harbinger of the evolution in the Mobile Hansdet Market. Fathom this, The Mobile Handste market in India is a whopping 120 Million Units per year, Thats really Huge & am sure any Group of Indigenous entrepreneur hearing that would Like to Jump the bandwagon
The slew of Indian Entrepreneurs setting up Mobile Handset Brands, imported primarily from China, is great example of that....Importing Highly Feature Loaded Handsets, at a very Low price, creating New Customer Segments & we have a revolution at hand.....Qwerty Keypad, which was being positioned by Nokia & RIM as a Premium / Corporate Kind of a Product, for checking e mail, was exploited to the hilt by the Indian Brands, Positioning as a great SMSing feature for the young Teens
Right Now the slew of the Local Brands is riding the bandwagon of Low Cost, Loaded Features (Consumer Benefits, Smart Phones in the range of 3999/ onwards are available in Most Local Brands today) & a Robust Distribution structure....Thanks to the Evolution & Transition of the FMCG Industry leaders to the Lucrative Telecom Sector....Thats a Fact of the Indian Telecom Industry, Most of the leading FMCG Industry stake Holders, have shifted to telecom.. Be it Top Notch Professionals or the Leading Distributors / Stockist of FMCG, all have slowly transitioned / adopted to the Telecom Game
Whilst the distribution reach achieved by Most Local brands in such a short span of time is enviable..While the Credit & Logistics, 2 most vital Parameters of this business, have been mastered by the MNC giants, Nokia & Samsung, with clearly defined Process & Parameters, it is the agility to respond to Market & the Flexibility to adapt, which has helped the Local Brands also gain quick access to the Market. With some of the Promoters of the Regional Brands, being strong & Influential People & using personal persuasion than a documented Organisation Chase
However there are a Few Challenges that might be overlooked & Ignored in this excitement
Consumer Service standards are still very Low in the Industry – Most Brands are still Operating with the 3rd Part arrangements
Very Ltd R&D to bring the latest Cutting edge technology to the Consumers
While the Distribution structure is pretty robust, the Local Brands have huge work to do to create the Retail Infrastructure & the Consumer Experience
One of the Key reasons for Nokias rise in India was its ability to Offer unmatched Consumer Experience via its Retail Infrastructure – NPDs / Retail Showrooms
Local Brands need to get out f the Price war sooner or later
o Pick up any Industry in India- The Top 2 brands are always the Highest Priced
o Price war cant be Played for too Long especially against Giants, who can flex every bit of the Financial Muscle when required
o Need To have Clear Positioning for the Brands defined
Apart from MicroMax, None of the Brands are trying to come up with a Clear Positioning statement for the Consumer
Come to think of it, There is a Clear Positioning for most of the leading brands today Blackberry, Apple, Samsung. Even Micromax is trying to create on, But the Other Local brands don’t have any yet...All of them seem to Offer the similar Positioning in the minds of the Consumer – Great Features, High Battery, dual sim, Qwerty & all in the same Price range
There seems to be very Ltd differentiation – The above mentioned are only how one can create the Differentiation – Service reach & quality, Retail & Consumer Experience (The Mobile Handset Industry , now needs to emulate the impeccable FMCG retail Model), R & D, Green Initiatives – Coporate Social Responisbility, Or Massive Brand Awareness –
Brand Awareness - Celeberity Endorsement, come at the next stage, once the Brand has established itself at the Ground Level, with Stakeholders, Consumers.. The Iconic & Legendary, Amitabh Bachchan , is the Brand Ambassador for One of the Brands Called Zen Mobiles ... whats its done for the brand, remains to be seen
Thats a Question the Survivor brands need to ask themselves ?