Transit - The New Location

Images Group, India's largest publishing house that specialises on Retail and related activities recently conducted the Food Forum India, an annual conclave where the Indian and International Food and Beverages industry congregates to discuss and share thoughts on current issues and best practices. This is one of those very rare events where Pepsi and Coke come together under one roof - yes, Pepsi is the host for the main event while Coke sponsors the Golden Spoon Awards. It was my privilege to be on a Panel discussion aptly titled "Transit - The New Location" under the aegis of National Restaurant Association of India (NRAI), an umbrella entity that is spearheading the needs and wishes of its members.

 At Food Forum India (FFI) 2010 held at The Renaissance, Mumbai, the stalwarts of the industry not only spoke about processing and manufacturing food items but also identifying the correct locations for positioning the products. An engaging session probed into the new-age transit locations as the venue for good food retailing. Sharing statistics and opening the session, Sanjay Coutinho, COO, Barista and anchor for the session Samir Kuckreja, president, NRAI and CEO and MD, Nirula's noted, “There are currently 454 airports in India of which 16 are the international ones. Also there are 18 million commuters in the railway itself of whom 20 per cent travel in the AC coaches. There are already 7,000 railway stations in India and 50 world class stations are being budgeted for in the near future. Thus, the opportunities thrown up by these new locations are endless.”

With travel becoming an important part of the lifestyle segment, more and more food industry players are exploring newer avenues, such as airports, for setting up their outlets. Anoop Sequeira, CEO, Brand Calculus (Booster Juice) stated, “Transit locations such as airports help us to generate business 24-hours as compared to other locations for which we pay rentals for 24-hours but can be open only for 12 hours or so. I agree that the rentals are high but at the same time the opportunity of business is higher.”

S Shriram, GM, Key Accounts, Cafe Coffee Day pointed out that even the location of the outlet within the airport area needs to be strategically chosen. He also brought up the issue about railway platforms being another good alternative location and thus questioned, “Almost 18 million passengers travel by train but do we have enough resource to satisfy even a fraction of them with our products and services? Also, the consumer at the airport or the railway stations are hard pressed for time. So we also need to consider how fast we can deliver to the consumer whose flight is getting announced and the likes.” Agreeing to the views put forward by Shriram, Zahir Abbas, associate director, Travel retail, Technopak Advisors suggested, “A lot more infrastructure needs to be built in the near future.”

Jagvir Singh Rana, Director - Operations and Business Development, HMSHOST Services India said “Having an outlet at the airports requires more hard work in terms of getting clearance for the staff but the traffic is good.” Kuckreja added, “Also there are certain rules to be kept in mind while packaging the food items at these transit locations.”

Rajeev Panjwani, CEO, Travel Food Services, concluded, “The display has to be attractive for the consumer. Also the store design needs to be more open in order to help a customer to move around with his travel baggage. It is all about convenience and now we are also looking at more specific opportunities like catering to the passengers at the delayed flight stage.”

‘Coca Cola Golden Spoon Awards’– Images awards for excellence in food retailing - presented on 4th March at the Food Forum India evening of food titans was a grand corporate ceremony with award presentations by business leaders, and high-gloss entertainment by celebrities. The Awards followed strict international benchmarks in deciding the top honors with IRIS as Knowledge Partner. The selection process involved a countrywide poll to short-list the nominees, jury nominations, self-nominations by short listed nominees followed by performance assessment by IRIS analysts. The awards Jury consisted of prominent names from the branded food industry and business analysts, modern trade teams of global & Indian food majors including Hindustan Unilever, Britannia, Cadbury, Cargill, Dabur, Darshan Foods and Forum of Indian Food Importers.

The ‘Coca Cola Golden Spoon Awards’ acknowledge excellence in food retailing & food services – retailers adopting best practices at the back end and front end – including customer relations, smart strategy, operational efficiencies and innovation across value chain. While Big Bazaar was one of the biggest winners on the night, the audience was mesmerised with scintilating performances by renowned singer Shibani Kashyap and stand up comedian Ash Chandler.


Big Bazaar’s award as the ‘Most Admired F&G Retailer of the Year: Large Formats’ was recognition for the company’s tremendous growth in a challenging financial environment from 110 stores in 2008-09 to 125 today. Big Bazaar narrowly beat out a competitive field of nominees for the award, which included Spencer's Hyper, Easyday Market, Hypercity, Star Bazaar, More MegaStore and Spar.

Walmart's India Retail venture with Bharti Retail's Easy Day with 56 stores won them the Coca Cola Golden Spoon Award for the 'Most Admired Food & Grocery Retailer of the Year: Small and Medium Formats'.

Pantaloon Retail claimed the ‘Most Admired F&G Retailer of the Year: Private Label’ on the back of news that its Future Group division is set to register a turnover of Rs.440 crores for the sale of food and packaged food through its private label. Other nominees in the category were Reliance Retail, Spencer's Retail, Aditya Birla Retail, Max Hypermarket and Trent.

The ‘Most Admired F&B Retailer of the Year: Cafes, Juice Bars & Parlours’ category was one of the most competitive of the night. Cafe Coffee Day was voted the winner by industry members ahead of Barista, Costa Coffee, Baskin Robbins and Jus Booster Juice.

The award for India’s best premium restaurant went to Indigo (‘Most Admired F&B Retailer of the Year: Premium Restaurant) while Dominos Pizza won the award for ‘Most Admired F&B Retailer of the Year: QSR Foreign Origin’ among stiff competition from KFC, McDonalds, Subway and Pizza Hut.

The Coca-Cola Golden Spoon Awards recognise excellence in food retailing and honour the brave innovative spirit of leaders in the dynamic Indian food retail and service industry. Food retailers are leading a change that has redefined consumption habits in India, resulting in a change in food tastes, preferences, awareness, consciousness and choices over the past few years.

T3 - Explore!

I was among the few fortunate to be present at the recent unveiling of the identity of the most promising retail venture of the century – I am not exaggerating… indeed, it is. I am referring to the upcoming new Terminal 3 at Indira Gandhi International Airport (IGIA), Delhi. The Terminal Building spread over 50 lakh square feet would be able to cater to over 30 million passengers per annum (mppa) in 2010 and would be able to scale upto 54 mppa by 2020! By far, this would be among the top five biggest airport terminal buildings in the world and possibly the biggest in India. The Airport is ably managed by the GMR Group – leaders in Infrastructure, Power, etc, who also manage the Rajiv Gandhi International Airport at Hyderabad. Many would know that recently, the Hyderabad Airport was ranked the fifth best airport in the world in the five-fifteen million passengers a year category. The council, an international association of the world's airports, has also ranked the IGIA as the Best Improved Airport in the Asia Pacific region. All this, thanks to the persistent efforts of the GMR Airports Team, ably lead by none other than Mr. Kiran Grandhi, Chairman, GMR Airports Division.

The new Terminal 3 which had a different Retail Identity earlier now has a new one developed by Holland based Marketing, Branding and Communication agency THEY. The new identity efforts, apart from choosing the Retail and Commercial partners, has been led by Suredj Autar, Chief Commercial Officer and Head of Strategic Planning for GMR Airports, The two day event was chaired on Day One by Mr. Martin Moodie, founder and editor of The Moodie Report, the world’s most trusted travel retail news website that never sleeps. Martin introduced Suredj as Supersonic Suredj - “He’s an ebullient, live-wire, irrepressible character who knows only one speed – supersonic.” Indeed, he is. I have known Suredj for over four years now since his previous role as Managing Director of HMSHost when he launched the operations in India and led other initiatives in the Asia Pacific Region.

Back to the retail identity. The Dutch agency THEY’s founder Van der Vorst remarked - “For us, Explore exactly captures the diversity and forward-looking way in which India is progressing – and at the same time it’s a promise, a link to the customer; an invitation to the customer to explore all the great things that can be found in an airport.” The colorful logo was also unveiled and the various commercial partners would be able to integrate the new identity with their own, whether it’s a store that sells books, music, duty free products or coffee (like Café Coffee Day). What I loved most about the new name is its flexibility – it goes well with almost every category!

The Retail areas are spread over 2 lakh square feet (that’s as big as a Mall, someone remarked in the audience). The retail areas have been carefully planned across the domestic and international areas. The common check-in area would have over 100 counters that could be used interchangeably for Domestic and International Airlines (similar to how it is at Bengaluru International Airport where I worked earlier and which introduced this concept two years ago). Focus has been given to walking areas, seating and shopping/dining areas such that each of it is visible from the other. So, when a passenger is walking, he/she cannot miss the shopping areas and the seating areas are close to the dining areas. While most of the shopping areas are on the same floor when a passenger enters, the food courts are a level above. There are two premium coffee outlets planned – a Coffee Day Square in the Domestic Departures and Coffee Bean Tea Leaf in the International Departures. And expect a host of F&B options – from Subway to Mc Donalds, Chinese delicacies to local cuisine, there is everything for everyone’s pallet. The Retail areas would sell almost everything possible, including an exclusive area for Luxury Retail and the highlight is going to be the much expected “Dilli Bazaar”, an area that would focus on the local favorites from the city.

Later in the evening, there was a cocktail, sit down dinner hosted by none other than the Chairman himself which was preceded by a short interaction. When Martin Moodie who was on the stage with him asked how good the new Terminal 3 would be, Mr. Grandhi promised it would be 10/10 to a thundering applause and cheer from the crowd. When I met him later in the evening to introduce myself and to shake hands, he got up from his seat with a smile – a charming gentleman that he is, I couldn’t have expected more! His effervescent personality resonates in his organization and his team. Everyone was so cheerful and enthusiastic and like them, I am also eagerly looking forward to the grandest retail opportunity of our times… Watch this space for more updates over the next months.

Foodstop! - Food lover's paradise

One of my previous columns claimed how this place would change the way Bangalore shops. It's only reassuring to see how true my own words were. Bangalore CENTRAL 2 at JP Nagar, Bangalore South, has indeed realigned the city's shopping needs. During my visit a week back, the new food court aptly named Foodstop! had opened its doors for public. And no better timing than during the Happiness Sale - a biennial celebration that offers upto 51% Discount across various product categories. The Central Sale which is as popular as the End of Season Sale from Shoppers Stop (more of that on my next column) is a huge hit among consumers across cities. Central Malls, which is now present at eight cities across the country, offers shoppers a unique shopping experience that includes great offering with amazing discounts - twice a year. So, if you haven't been there yet, rush NOW.

The foodcourt is located on the fourth floor, where the Box Office (the ticket booking counter) for the upcoming Cinema would be located. So, all patrons who wish to watch cinemas must pass through this floor - a brilliant idea to get footfalls into the foodcourt that would show results in a few weeks when the cinema opens. The foodcourt is well spread and brightly lit and has a busy neighbor - F123, a play area for children and the ones at heart. I beleive there would be atleast 100 seats or more for the six/seven food counters in the area. What I loved the most is the wide offerring - from continental to kannadiga fare, there's everything that discserning food lovers need. What I am bit confused is their adjacency. Will seek answers for that soon from my friends at Central.

The first counter serves Juices and Ice-Creams. In a way this is the last one too. I wonder why this is the first. But maybe there's a reason. The pricing is moderate and the selections are wide. The next one is Bombay Blue, the flagship F&B concept from Blue Foods, which manages various other concepts all India such as Noodle Bar, Cream Centre, etc. and is also the one that runs F&B across various Indian airports such as Mumbai and Delhi. The menu offers lip-smacking continental food varieties, including Soups, Pastas, Sizzlers and the signature "Sizzling Brownie-Ice-Cream", my all-time favourite just as many of you. The portions are large enough for one person and the pricing is aggressive - just as compulsive to make the first-timers try. The next counter sells Indian fare - Rotis, Kebabs, etc. Nothing much to say as it includes almost everything that one needs in this variety. This is followed by Subway, the only branded counter (which was yet to be operational (as of 6th Feb. 2010). And this would be managed by my good friend Griffith David, a US returned techie who's passion to food led him to enter the F&B business a few years ago and is now one of the largest franchisses in South India for Subway and Baskin Robbins and is also opening some of his own concepts, and operates his flagship Subway/Baskin at Bengaluru International Airport since May 2008. My best wishes to him as this is his first in a Mall. The next counter serves traditional south-Indian/Kannadiga fare including various varieties of Dosas and Idlys. And the last counter serves tradional north Indian chat varieties.

However, the missing counter is a Cafe - yes, there is no coffee and beverages available in this floor. I beleive Coffee and short-eats would do well in such food courts that offer continental/western style food as it goes well with such a menu. I am trying my best to fit in one of our cafes there, but yet to see light. However, Cafe Coffee Day is located next to the customer Helpdesk in the second floor , which is mainly targeted towards the youth and offers casual wear clothing along with E-Zone, the Electronics format of The Future Group. The 200+ car parks in the basement ensures that there is enough space for those who drive in, apart from a similar number for bike parking. And there is a new unoffical Auto-stand just outside. this makes the visit to this mall an easy access, one of the most important moments of truth in retail.

What I love the most about Foodstop! is the variety and range with superb pricing. A family of four could have a sumptuos, tasty, affordable meal from across the world for not more than Rs. 400/- (USD 9) which is a rarity today in Bangalore. Kudos to the Central Team for putting up such a fare.

Coffee Conversations...

It’s been almost a year since I started writing this column – recording my own observations about the Retail Industry as well as analyzing and interpreting decisions and actions of Retailers and their activities. I must admit that I have acquired a lot of admirers and a few critics on the way – not on a personal note but more on a professional stance. To make your reading more interesting, I am introducing a new column titled “Coffee Conversations”. In this section, I seek answers for queries that I have from Industry experts and stalwarts, while also discussing my own thoughts about the same. This is not mainline journalism – and I am not a journalist. Nor are those who opine spokespersons of their respective organizations. They are mere professionals who share their thoughts on certain specific topics.

The next column is about the recent advertising marathon by Retailers and Brands – and the recent occasion being India’s Republic day that is celebrated every year on the 26th of January. Almost every brand/retailer have been showering discounts – from 10% - even 60% in some cases on a range of products including apparel, accessories, electronics, household items, etc. The only category missing conspicuously is Automobiles – probably they are happy counting their bucks, thanks to very good sales over the past three months. But this Discounting phenomenon brings some thoughts to my mind – what happens to the Brand‘s Equity in the long run?

I spoke to my good friend Raman Kalia, an Advertising and Marketing professional with varied experience across consumer brands and services who now leads the Marketing division for one of the best managed Airports in India. Excerpts from the conversations that we had recently over coffee:

Shriram (SS): So, Raman, did you see all the nice ads overt the past few days on leading national newspapers inviting shoppers to buy products on discounts? Which was the one that attracted you the most and why?

Raman Kalia (RK): In this season, it is not possible not to see discount and promotional advertising from brands across categories. The season in a way has become synonymous with discounts, so I did notice advertising from apparel brands, electronics brands to host of others categories. There is no specific campaign that stood out in the clutter because these were plain announcement ads with each brand trying to outshout the other but even with these one, even if one tries, not notice the larger formats and in your face advertising. So I did notice Big Bazaar, Croma and some apparel brands advertising, but the bigger question is what I remembered beyond the fact discounts were on - Answer is nothing.

SS: Do you think most consumers tend to shop more when they find words such as “Sale”, “Best Deals”, “Save”, etc.? If so, then why?

RK: It is no secret that Indian consumer is a value consumer and with discount seasons getting well established, purchase cycles are getting aligned to these seasons. It is more important for brands to consider with such seasons - are people spending more or actually less? On the surface, it might give an impression that people are spending more in that particular week, month or season but if a planned or need based purchase is getting aligned to that season, then probably brands are earning less, not more. Against this, if brands are able to build impulses, which are true in certain categories, say electronics or apparel, and expand their base of users, it can be said that consumers have shopped more. Brands should not look at just the season to base their assumptions but look at the full year to make a judgment whether discounts or sales or best deals have added value to their business or not.

SS: In the long run, do you think these brands/retailers would lose their significance? Would consumers shop only when there are deals?

RK: But of course brands/retailers would lose revenue and equity if consumers start buying during season. To take an example, if the MRP of a product is100 and offers a 20% seasonal discount year after year and the bulk of consumers start buying during that time, they are telling the brand we value at 80 and no longer 100, that means its premium has eroded in the consumer’s mind. The prime example of this is Benetton; you would rarely find people buying this, one of the most respectable and recognized all over the world brand, at full price in India any longer. It has become a discount brand, with weak associated imagery.

SS: What about the Brand Equity? Do you think consumers would value the brand as much at a later date when they shop again in full price?

RK: There is no single answer to this question; it depends from category to category. In certain cases it actually enhances the value of the brand because it offers a chance to experience or enter the category. Every brand has three set of consumers – core buyers, fringe buyers and non-buyers. As long as discounts do not isolate or create dissonance in core buyers and at the same time give an opportunity and a reason to fringe buyers/non-buyers such schemes add value.

SS: Which categories according to you think have the least effect on their value? Can you elaborate with some examples?

RK: Discounts, at the end of the day in a way mark the end of something and are a symbol of change, a precursor before the new comes. And in certain cases clearly demarcated time fragments which are well established. Let me explain this by picking up three categories; technology, apparel and hotels.

Let’s start with the simplest one, hotels, you have season and non-season. Discounts and offers during non-season do not impact the rates that hotels charge during the season, why one because people travel less during that time, but it gives a chance to fringe or non-buyer to enjoy that exclusive experience. Even if a core consumer avails the opportunity it still does not erode the value because overall reason of a season is well differentiated from the non-season. Different opportunities, different reason, no dissonance, yet at the same time adds value to the brand in terms of revenue, consumer base and building brand equity.

In case of technology, it is an ever evolving category and every new launch makes the previous obsolete. So when an Apple discounts Nano after the launch of Nano with camera, buyer who has bought Nano at full price also understands that earlier price was an opportunity cost, without impacting the brand equity. Same is true for cars, when a new launch happens, say i-10 vs Santro from Hyundai and Hyundai offers Santro at a discount, it need not kill the demand of i-10. Some value conscious consumers might buy Santro instead of i-10 but in their mind the trade off of price and technology is clear. It does not devalue the brand.

Apparel is far trickier to answer. Fashion is always about change, and in a way reflection of the consumer. Now if new range is distinctive from the old discounts it would not erode the equity but unfortunately it is not true every time. Some brands and their products are so generic that it is impossible to differentiate the two and that’s where the issue comes. Now change could be color, cut, shade, design anything but in apparel a majority of Indian brands have not been to establish that and even otherwise a majority of Indians are not fashion conscious, hence erosion of brand equity with established seasonal discounts gets eroded rapidly.

Bottom-line is, discounts work for brands only when the reason of discount is well established and consumers can answer the brand is offering a discount because of a well defined and well understood reason. Trade off between new and old is when discounts do not impact brand equity, if that difference is not established it leads to dilution of brand equity and loss of margins. And the market is strewn with such examples where brands have not been able to achieve this; white goods, apparel, fashion accessories, footwear and zillion more – and today are victims of “I will buy during the discount season” mentality.

Brands should offer discounts only when-

1. Such schemes will not create dissonance in core buyers or change their buying behavior

2. Reason of discount is well established and trade off is understood

3. It marks the end of something

4. There is marked difference that segregates the old from the new, which is felt by the buyer either in perception or by any of the five senses.

SS: Last words of wisdom for Retail Marketing Managers?

RK: There are no simple or easy answers.

Thank you Raman, and wish you all the best for your upcoming Shopping Festival.

National Shopping (& Savings) Days…

We sold 40,000 cameras, 7,000 laptops and 8,000-9,000 LCD Tvs, during the 23-26 weekend, proclaimed Mr. Kishore Biyani last week, Founder and CEO of India’s largest Retailer, The Future Group. This property famously created as “Sabse Sasta teen din” or “Cheapest three days” six years ago, was experimented at the Big Bazaar Outlet at Lower Parel, Mumbai among others and has hence become a national rage. This year, over 120 outlets of Big Bazaar spread all across the country participated in this challenge. Over the past few years, the other formats of the group have also joined the bandwagon and this was vividly seen this year. The idea apparently stemmed from a simple fact – that consumption in India is driven largely based on two needs – a regular monthly need and a festival/event related one. So, there was monthly shopping of Grocery and Household items and the 2-3 times a year festival/event shopping – Diwali, Id, Christmas, Wedding, Birthday, Anniversary, etc when consumers shopped for Apparel, Electronics and other Home needs including premium and luxury products. The Group wanted to create a day (or rather a period) where consumers could shop without a specific reason – and only for the value and related happiness they derive. Thus was born this unique concept. 26th of January is India’s Republic Day, a national holiday which is always one or two days around the weekend and is usually considered as a long weekend since many take one or two days leave from their work places to spend more time with their family and friends.

Many industry experts have compared this to Boxing Day/Thanksgiving Day like in the West. These are specific days of the year when consumers throng to Retail stores because products are available at the cheapest prices. While most products are outdated or out of season, consumers still see value in the offering. For example, a laptop for home use which would usually cost $ 900 would be sold at say, $ 600 – and this is only for a day. So, consumers plan their purchases in such a way that they wait for the shopping season. A lot of research on the topic has revealed that more than 30% of such products purchased during these times were inconspicuous consumption – the customers didn’t really want them but bought only because it was cheaper… Consumers are the same everywhere – from Amsterdam to Ahmedabad, Bangalore to Boston, show them “value” and they would buy even if they don’t need it immediately. Thus, the value formats of The Future Group, namely “Big Bazaar” & “Food Bazaar” have seen a huge spike in sales.

What confused many of us in the industry is that this concept has been blatantly followed by many other Indian and even International Retailers who are not in the “value” retail formats. Apparel and Department stores were offering discounts, and so were the mono-brand fashion retailers. Electronics saw a huge surge in discounts, with a number of bundled deals and lowest prices for the period. While the offers were tempting enough for consumers to buy, was there a long-term approach in these efforts? Probably not. Beyond a point, discounts will not increase sales but will only decrease – what is famously know in Macro-Economics as “Law of Diminishing Marginal Utility”. Over a period of time, consumers will refrain from buying at full prices and will wait for the discount season. Yes, I agree that this country has over a billion consumers and thereby throughout-the-year shopping will exist, however this would do more damage to the brands' reputation, especially fashion and luxury, in the long run.

The End of Season Sale or EOSS is usually just around Christmas globally but in India, the cycle was a bit behind – many Retailers were planning it around Valentines Day (14th Feb.). But this has also changed of late. Many Indian Retailers have already started their EOSS in Jan. and there seems to be a mad-rush among them for the customer’s wallet. With all the brouhaha around discount shopping (my forthcoming article would delve deeper into this), consumers are smiling away to glory having got the best deals due to intense price-competition among Retailers. So, what happens to the Brand Equity of these players? Would consumers continue to shop at full-prices when they know that the same brand is available at a discount in the near future? Watch this space…

Coffee Conversations...

It’s almost a year since I started writing this column – recording my own observations about the Retail Industry as well as analyzing and interpreting decisions and actions of Retailers and their activities. I must admit that I have acquired a lot of admirers and a few critics on the way – not on a personal note but more on a professional stance. To make your reading more interesting, I am introducing a new column titled “Coffee Conversations”. In this section, I seek answers for queries that I have from Industry experts and stalwarts, while also discussing my own thoughts about the same. This is not mainline journalism – and I am not a journalist. Nor are those who opine spokespersons of their respective organizations. They are mere professionals who share their thoughts on certain specific topics.

The first such column is about the recent advertising fiasco featuring the world’s best known Ice-Cream Retailer and one of the most respected agencies. Many of you would know the fauxpas already – the agency communicated on a signage that entry to the newly launched store was “restricted only to holders of international passports”. What they meant was something else but this irked the Indian sensibilities almost immediately and what followed was brand bashing – offline and online. They say “Any publicity is good publicity” but I guess this is the last the Brand would have wanted even as they move into one of the toughest consumer markets in the world. The agency has been removed from the services of the company with immediate effect and it is yet to be seen what happens next.

I spoke to my good friend Akshay Ananth, a young and energetic advertising professional who leads the Client Servicing Division for one of the best known agencies in the world, which is also the most popular and respected one in India. Excerpts from the conversations that we had recently over coffee:

Shriram (SS): Tell me Akshay, how important is the role of the Advertising agency to get into the DNA of the Retailer or the Brand, especially if it is new in the Indian market?

Akshay Ananth(AA): Whether the brand is old or new it needs someone to communicate with the consumer. It’s the agency that does it right now. The whole idea of an agency is to talk the consumer’s language as opposed to manufacturer speak. Some of the best brands have been created by the agencies. E.g. BBH raised Johnnie Walker to where it is now. Lemon, Axe, McDonald’s. The list goes on.

SS: Is it important for the Retailer/Brand to engage the agency at a very early stage – say, even when the Brand plans to enter the country?

AA: Yes absolutely, the brand that will win the war over minds is the one that makes the consumers tell the right story. If the entry itself provides a story, why not?

SS: Is the agency solely responsible for all internal and external communication that goes out? What about the Brand Management Team?

AA: When s**t hits the roof, somebody has to be holding the can – accolades to the brand team and all s**t to the agency. It’s a hurting fact but its true… Globally.

SS: When there is a result that is not the most desirable (like in this example), what is the stance that the agency and the Brand should take? Defensive? Mud-slinging? Does sacking and replacing the agency help?

AA: I guess there are two things here, do the due diligence (also get someone to wear the black hat) and the second is, get a crisis plan ready.

Mud-slinging is our national sport, so I guess that’s good entertainment. Other than that, if you do not stick with each other thru thick and thin, what team are you? Firing the agency was a knee jerk reaction and an easy one. I would have started with firing the brand manager.

SS: What happens with the image of the Brand? Is it true that Consumers forget and forgive? Can you cite some examples?

AA: Yes, to a great extent. With all the clutter in the consumer space, nobody is an Einstein. People do have very short memories today and a lot of brands to take advantage of this fact. For examples, I will only say Lexus, Mattel and Cadburys & Pepsi.

SS: Last words of wisdom for Brand Managers?

AA: The agency is not your slave, but a partner. If you treat as a slave, like all slaves it will run at the first sign of trouble. A partner will see a problem and solve it, have a back up plan or atleast stick with you. Additionally, clients that treat agencies like dirt always end up paying the price. They see attrition rates shoot through the sky from the other end.

Only one word of wisdom to the agency crowd: one of my bosses was fond of saying: “client ke client ko samjho”, believe me, this piece of advice is invaluable.

Thank you, Akshay for your time and keep up the great work. Best Wishes for your future endeavors. Cheers.

Swagatham! Suswagatham! Welcome to India…

The Indian Ministry of Tourism recently announced Visa on Arrival for residents of Finland, Japan, Luxembourg, New Zealand and Singapore – a move which was debated so much that the Hon’ble Minister of State for External Affairs Mr. Shashi Tharoor even tweeted about the topic, which was covered more in the media than the Visa news itself! The visas would have a maximum validity of 30 days with a single entry into the country which will be restricted to airports at Delhi, Mumbai, Chennai and Kolkata. The four airports account for over 65% of Indian aviation – of the over 110 million pax who fly within and outside the country every year. Whether there are enough takers from these countries is anybody’s guess.

But it’s a welcome move, many say. Martin Moodie, founder of The Moodie Report, the world’s most read Travel Retail website that never sleeps, remarks “Obtaining an Indian visa is a notoriously unwieldy process”. He couldn’t be wrong. He travels all across the world for over 200 days a year and visits India atleast once each year. One of my good friends in the Industry and a mentor of sorts in my professional life, Martin Moodie blogs regularly about his experiences across airports and the Travel Retail business in general. Apparently, the number of Japanese visitors into India grew by 3.5% in 2009 to 151,000. Understandable, since many Japanese Auto companies, Suzuki, Toyota and Honda, command a respectable market share in India. While Suzuki (with a JV with Maruti) holds the fort in the mass segment, Toyota and Honda slug it out in the premium segments and are famous among the Sec A+ and A in the large metros.

So what does it mean to have “Visa on Arrival”… Aplenty. To begin with, it is seen as a country which welcomes visitors. Thailand and Malaysia have been doing this for sometime now and have seen noteworthy results. While the domestic unrest in Thailand did crash the visitor entries in the first half of 2008, the tsunami after effect in 2006 and early 2007 was severe in Malaysia – a country which has a tremendous tourism potential due to its unending sea shore. They are also inexpensive for those from the West and the Pacific as the Dollar conversion works very well – from coffee to cigarettes, from luxury stay to gourmet food. India has taken a giant leap in 2010 by announcing this major initiative, kudos! The move is expected to help the country’s economy to a large extent and how.

One of my presumptions after the Congress Party won the Parliamentary Elections in Summer of 2009 was the main focus areas – Tourism and Infrastructure. And this is exactly what we are seeing. While Infrastructure Development is the mantra all around, the Tourism impetus has been doubled, the least to say. Wish the same focus remains on developing Domestic Tourism as well. The website of Incredible India is not just attractive, but quite informative, exhaustive and engaging as well. And is the entry point not just to India, bit for all those who are looking for information about Indian Tourism.

And with growing Tourism, Retail is sure to benefit in a big way. Global tourist destinations have tourists visit their Malls and Shopping Centers as much as the city residents.

In fact, certain products are always considered to be cheaper in foreign countries – possibly because they are either manufactured there or the country allows cheaper or nil import duties. For example, coir and jute products are famous in Thailand just as Dry Fruits are in Dubai. International Fashion Brands are always the pick of the place at Singapore and Hong Kong. Except for Mangoes and Tender Coconuts during summer and woolen clothes from Punjab and Cotton produce from Tiruppur or Surat, there is little that we have to offer that tourists can grab. But there is enough and more of tourism potential to offer across the country, throughout the year. From Deserts to Sea Shores, from Mountains to Fashion Capitals, India has everything to offer. And while people travel, they are bound to consume. It’s just a matter of time, that we see an uptick in Retail Sales due to foreign travelers. But it’s sure bound to happen, sooner than later

Till then, let’s keep chanting “Athithi Devo Bhava” – Welcome to India…