All In My Mouth

When I was a small boy, I would be excited to go to the shop and buy the toothpaste. But those were the days when toothpaste came, as Henry Ford would have put it, any colour - so long as it's white. But then things have changed. So has what I consume for my oral hygiene.

Tooth paste: As I said, paste for many years to me was the white uninteresting Colgate. So when the color TVs arrived and Close Up ads played, I finally felt there was some hope. At the age of 10, I took a firm control over the decision to buy the toothpaste. Maybe I love red color or probably the mouthwash included in the paste was the reason. One of the most difficult moments in life is having to deal or converse with someone who has a bad breath. And I have dealt with many. The fear that I should not have a bad breath was probably the biggest driver. Also being a gynephilic, one has to send the right breath out. Those days, in addition to Colgate, brands such as Binaca (later, Cibaca) and Promise were the other options. Till about 2 or 3 yearsback, I was always a Close Up loyalist.

Lekin Master Ji, app ke daanth! Remember this line from Dabur Red tooth powder ad. Well, Dabur products were never in the contention. But a sudden chance and eagerness to try Dabur Red has changed the course of my oral care journey. In fact, Dentist's suggest that one should change the toothpaste, often. I believe the germs in the mouth also get used to a particular paste as much as the mosquitoes to DDT. And believe me I made a right choice in Dabur's product. Dabur Red comes into your mouth like an electric shock. It is bloody spicy and leaves a burning sensation long (maybe because of laung/clove) after you have brushed. I must say no other toothpaste has refreshed me as much as Dabur Red has. Encouraged by Dabur Red, I decided to try other products from the company's stable. And, again, trust me, you will love Meswak for its taste and feel. Dabur Herbal is also good but comes third in my ranking. Encourage by the overall experience, I recently bought Babool. Seems to be ok. But I think I will go back to Red and Meswak.

Tooth brush: As important as a paste but probably the most least involvement category is the brush. I, too, was very indifferent and brand un-conscious. It had to be less than Rs. 20 and SOFT. A while back, Savitha went to a dentist for routine check. The doctor advised her to use Colgate Massager. Huh, Massager! So, as a good wife, she decided to pick on for me. And that was when I realized that the value you derive from a product is directly proportional to the price of the product. Use it to, to feel it.

Mouth wash: Have you seen the ad of Listrine featuring Cyrus Sahukar? The first time I used Listrine, my mouth exploded pretty much the way it has been depicted in the ad. Except, cheeks stayed intact. The alcohol inside your mouth does have a telling effect on your eyes. And after you have gotten used to Listrine, any other mouthwash is a compromise. I did use Plax, didn't work out for me.

Floss: Now, I am quite certain that for an average Indian, I am more adventurous as far as trying out new products for the mouth is concerned. But it is not that I am, basically or generally, like that. I have this problem of food pieces getting stuck between my teeth. So, on one such occasion, I decided to buy a Oral B Floss. I found it too cumbersome to use and the fine plastic did hurt my gums. On a trip to Health & Glow, I saw a pack of floss. It was a toothpick at one end and a U at the other end with flossing ribbon. Worked well for me. I don't want to share gory details, but I can tell you that if nose could smell in between the teeth, one can die. That is exaggeration for elucidation! While big brands also have this type of floss, they don't seem to be in the shelves.

Not only expensive products but also these inexpensive and colorful plastic tongue cleaners have become part of the daily routine. My mouth has become very sophisticated and demanding customer. It makes me wonder as to what percentage of the grocery bill goes just inside my mouth. And how many brands and products fight for a piece of my mouth.

All this for what? Well, health. And, of course, to have a non-smelly conversation.

But from Marketing perspective it is quite interesting to observe consumer behavior. In my opinion, most of the products that we use for oral health are low involvement category products with high customer loyalty, especially for tooth pastes. On the other hand, brushes, except for mature customers, doesn't attract much of loyalty/stickiness. On the other hand, penetration of mouth wash and floss should be very low. It took me more than 30 years, to take the giant leap and that too without any obvious reasons. Walk into a super market, the oral products do corner a huge space!

The fight for my mouth-share!

Dual Sim Phones: Why Biggies Are Not Interested?

Mobile services were launched in India in 1996. For a long time thereafter, the mobile subscriber base kept low. Mobile phones were a desirable object. Very expensive to maintain. Even if someone had a mobile, the usage was limited to using it as a number identification device. Even receiving calls meant huge outgo.

My first 'brick' Motorola mobile phone was handed over to me by my colleagues who did not want to hurt their arms. Now those were the days when I neither had a mobile phone nor a girlfriend. Since I couldn't do much about acquiring a girl friend, I quickly grabbed the opportunity to get connected. But despite the connection, I avoided making calls, forget receiving calls. But yes messaging was free then.
Then things changed; quite fast they changed. New players arrived, prices came down. CDMA was launched. And that was when I acquired my first own mobile handset - Kyocera CDMA phone through Tata.


Well after a while I shifted to an Airtel GSM connection which I continue to use till today. I also changed my handset a couple of times. From a basic phone to a smart phone, I have seen it all, to say so.
Today, the penetration of telephone services is more than 60%. The total number of mobile subscribers is close to 563 million and the remaining are connect through a wire.

Going back to 2000, I finished my MBA and joined Integral PR which was owned by Mr. Deepak Talwar. Mr. Talwar was a very dynamic man, a very famous person in the Indian Political and Business circles. He used to visit Chennai office once a while. And that was the first time, I saw someone who had not one but two mobile phones. Wow, now that meant something!

2010.

My wife was handed a BlackBerry and a connection by her employer. She already had a personal connection. The lady is quite principled. She does not prefer using office landline or official mobile phone to make personal calls, unless it is an emergency. So she decided to keep her personal connection. So we bought a Micromax Q2 for her. A Dual SIM Phone with decent features and priced just below Rs. 3000.

Oh, did I say Dual SIM phone! But actually she doesn’t use that feature. She, in fact, carries two phones. Now, who wants to own more than one connection? Not everyone is a Deepak Talwar. Carrying two phones around, two bills and managing them, a pain. But I guess such a market does exist. This recent article in Brand Equity puts the numbers slightly higher.

“… For example, multiple SIM usage. “There’s definitely a multiple SIM phenomenon. It is evidenced by a recent spurt in the handset sales of multiple SIM phones. Among the 575 million connections, we have seen there are quite a number of users with multiple SIMs,” says Mahesh Prasad, president, Reliance communications. He estimates 70% to 80% of the total subscriber base is active and of these, 20% are multiple SIM users.”

In the olden days of the landlines, anyone who had two phones meant that the person was powerful and rich. Not that it was expensive but just that it was difficult to get a connection. Would that be true if someone has two mobile connections? Most certainly, I would guess.

So who might use a Dual SIM phone? I am not clear about that. Would it be an entrepreneur like Deepak Talwar or Gopal with whom I play tennis? Would that be top executives in corporate or yuppies? Interestingly, I have come across two young ladies who carry two mobile phones.

In my opinion, it could just be fad. Why is it that large players are not so keenly contesting for this niche space? You hear brands such as Micromax, Maxx, Fly, Orion, Spice…or the generic ‘Korean’ assembled pieces. It would be important to mention that Micromax is now the third largest mobile handset company in India. Is it just a differentiation tactic used by the players who aspire to make it big?

But if we assume that, today, two mobile connections is more amongst the rich and powerful, then those at the top may prefer an established brand. Will a CEO prefer to carry an iPHONE or a Blackberry with Dual SIM feature or a Micromax phone?

I am in Dual Mind, now.

PS: I would like to point out that I am not claiming that the top handset brands do not have Dual SIM phones, just that they are not as aggressive as the newer brands.

Apple Overtakes Nokia

Apple overtakes Nokia. Ok, Apple hasn't really overtaken Nokia in terms of units sold. But I guess that was never Apple’s intention.

By now, Apple's success has been well recorded and written about by media, marketing gurus/analysts, bloggers and authors.

So, I may not have anything new to say. But am recording my thoughts anyway.

When Apple announced the launch of iPhone, one of my colleagues wondered if the company would ever succeed and be able to beat the existing players. Mobile phone market is extremely crowded. We could very well say that mobile technology is definitely in the Tornado phase. There are Gorillas, Chimps and Monkeys. Oh, wait a minute. Mobile industry is actually commoditized market, meaning the switching costs are lower. So, we have King (Nokia), Prince(s) (Sony Ericsson, LG, Samsung...) and Serf(s) (anybody other than those previously mentioned).

It was a valid question. Apple, which has roots in computing, could be classified as Chimp in that industry. A specialist who could never win the battle against the IBM clones. But if there was one advantage that Apple had was its brand image. Apple was supposed to be cool. It was supposed to be a favorite brand of the famous. It was always aspirational. But because it defied the rules prescribed in Geoffrey Moore's Crossing the Chasm, it became a niche Chimp, trying hard to knock the pins in the alley.

But things were taking a different shape in the technology and consumer behavior. With the rapid innovations in the mobile handset and telecom industry, mobile phones were fast emerging, if not replacing PCs, as the mode for communication, computing and entertainment. Probably, it is the first true Convergence device. Today, there are more mobile-phones vis-à-vis the PCs and laptops.

Apple would have diminished and been wiped out if it had continued to stay in the PC industry. Despite bringing in newer technologies and being aspirational, lack of partners would have killed any chances of gaining dominance. And as it is said and shown in Pirates of Silicon Valley, Bill Gates and his Microsoft would have done a Fast Second.

I guess it was but natural for Apple to move into this space.

Oh btw, I very recently watched Pirates of the Silicon Valley. Do watch it, if you like Steve Jobs or Bill Gates or the PC industry.

Then something happened after the mercurial Jobs was back at the helm of affairs at Apple. He changed the fortunes for the company and waged a battle that has become a legend. And his weapon in this war – Apple’s brand equity.

This brand image not only bailed it out but also catapulted Apple to a leader in the new areas. Like a phoenix, it rose. While, everything that Jobs touched turned gold.

But we cannot say that brand image was the only reason for Apple to succeed. Philips is the best example which despite being associated with electronics industry could not cut ice in the handset industry, but it is not the only one example.

I think Apple made a strategic (conscious or unconscious) decision of first releasing iPod. Or maybe iPod happened and it was extended to iPhone.

Or I could say iPod set first the rules of the game and received an overwhelming response to its initiative to transition from desk and laps to the palm. While, the software and the iTunes did its magic, it was the show value of iPod which won the hearts and thus the desire amongst targeted users. As Naru would say the value is captured by what is visible and iPod, a sleek device, did a fantastic job. Apple with a slew of variants from Nano to Shuffle not only demonstrated dominance but also expanded market share.

Until Apple’s iPod arrived, the ubiquitous MP3 songs were heard mostly on computer. And, maybe on mobile phones. iPod revolutionized listening to music, the same way as Sony’s Walkman did, ages ago. Ah yes, Sony took the cue around the same time and launched Walkman series of mobile phones which also became popular. Later, the same series was rechristened W Series.

iPod had its own challenges. Microsoft launched Zune but failed miserably. Poor Microsoft, it has become so big and has to fight battles on so very many fronts.

Of course, other formidable challengers were Mobile handset companies themselves. Almost all built strong music features within them. Then, of course, other electronic players like Transcend, Creative, Samsung, Sony, and Philips…who brought their own music players. And not to forget, the unorganized/unbranded products, which were shells sold for peanuts.

There is a rule in technology marketing which says that the market leader has to continuously challenge itself. Which Apple did, pretty well.

Finally, an Apple product which retained its desirability quotient but transitioned Apple from a niche PC maker to a mass-market premium music player.



And it was this success and acceptability, which laid the foundation for the launch of iPhone. Now who could have imagined that Apple’s reincarnation? The biggest achievement for iPod was that it made Apple’s software be used by a much larger audience, something which weighed heavily against it in the PC market. What is important, it became the leader and rewrote the rules.

Persistence pays! Investing in brand repays more!

Differentiated Ear Buds: Quality Propotional to Price?

Despite numerous advice from doctors and warnings from Savitha, the habit of using ear buds soon after bath does not seem to go.

Am so addicted, if I do not use it, I would get withdrawal symptoms. I have to use ear buds and soak away the water from the passage. I keep doing to the point that water flows from my eyes and then I feel heaviness in my ears.

Who said people get addicted on drugs?

I have always used Johnson's ear buds. In between I did use the local stuff which is a very "cheap" option, both cost and quality wise. Then there were these emails floating around saying that unbranded ear buds are made of recycled cotton from hospital wastes. It named an unheard infection that could be fatal. After reading one of the early forwards, I stopped purchasing that Rs. 10 for 100 pack.

Have you noticed that there is no other brand other than Johnson's visible in market? A week back I went to Apollo Pharmacy and asked for Johnson's. The pharmacist introduced me to Apollo's own branded ear buds. I was excited thinking finally there is an option. Considering Apollo Hospitals is a big brand, the product must be safe.

The ear buds, basically, has two parts - the stem and the cotton buds on the two sides. In terms of quality, Johnson's stem and the amount of cotton and the firmness with which it rolled is far superior than both unbranded and Apollo's. Apollo's stem is better than unbranded. Unbranded stems can bend with little pressure.

The most important aspect is the amount of cotton available for us. Again, Johnson's buds are safe to use and soaks more water. When the buds soak water, the cotton is compressed. If there is not enough amount of cotton, the stem can hurt the sides and the drum. To my surprise, Apollo's performance was as "good" (read bad) as unbranded products'.

In terms of packaging, Johnson's is available in the small plastic container (with about 100 sticks, I think), a large refill pack (with 60 sticks) and then small refill pack (30 sticks). Apollo was available in the small plastic container. Unbranded are available in 100s in a small polythene cover.



No guesses on price! But clearly, Johnson and Johnson rules!

That leads me to think if the quality of product or service is directly proportional to the price a consumer pays?

South Indian Restaurants or Multi-cuisine Coffee Shops?

Karaikudi, Anjappar, Aruppukottai, Arasappar. These names if uttered to a Chennaite will stimulate the bile and other gastric juices. These restaurants offer sumptuous spicy and delicious Chettinad food. The crowd never seems to die down in these outlets.

I was having dinner at Karaikudi couple of months back. It was quite late and I think I was down three drinks. Those who drink will agree that stomach prefers hot and spicy food after the walls become intoxicated by fermented and distilled juices.

Not that I hadn't noticed this earlier but guess under the influence of alcohol, my marketing mind started working over time. The menu seemed to irritate me. Why? It was the amount of Chinese and North Indian dishes that were peppered on a Chettinad restaurant’s menu. What's more, even the captain seemed to be suggesting fried rice and some Manchurian dish. Totally unacceptable!

My mind wandered and virtually explored the menu of various North Indian, Chinese and Continental restaurants. I was quite sure that those menu were unadulterated, unlike the liquor at TASMAC outlets and the Chettinad restaurant menu. The exception probably was Kumarakom restaurants that serve food from our neighboring restaurants - Kerala.



Well, I ordered Attu Kaal soup after which I neutralized alcohol with idlies and spicy fish curry. My favorite combo!

While, hunger subsided, the question lingered in my mind along with Chettinad spices.

Would I order Masala Dosa at Cascade? Will I order Naan and Paneer Butter Masala at Tangeriene? Or for that matter Spaghetti Nepolitaine at Dhabha?

Then maybe I thought it was an issue with Chettinad restaurants. But then I proved myself wrong. Saravana Bhavan, Sangeetha, Palimar which are renowned South Indian restaurants serving veg food also where in fact operating like multi cuisine restaurant. Oh by the way, Chettinad restaurants mostly serve non-vegetarian food.

Is it an interesting consumer behavior? Is there something wrong in positioning of these restaurants? Or is it a strategy by restaurants to gather more market share?

In my opinion it is all. First, I think it would be wrong to classify Saravana Bhavan, Sangeetha, Palimar, and the Chetti restaurants as South Indian. They classify better as coffee shops. Open almost round-the-clock. They serve all cuisines. These restaurants have used their brands to tap the market with their South Indian positioning while parallely expanding their servings that address the needs of the varied taste buds. They have successfully managed to get more customers and the eating-out business pie. Important to consider is the price points of these restaurants which necessitates them to focus on volume business.

The niche restaurants on the other hand are rather premium and attract a different set of customers. And as in any business, differentiation is the key for survival. Even in the niche restaurant market, there are differentiated player. Particularly, this is true in the North Indian or Punjabi restaurant segment.

On the consumer side, there was a time when eating out was a big deal. But with a booming economy, money to splurge and changing life style has changed our behavior towards eating out.



With the change in lifestyle and exposure, consumer palette has also become global.

It must be a no-brainer that the reason for eating out and the choice of restaurants has a strong relationship. Here I must mention that the children have a strong opinion nowadays on where to eat. They infact are decision makers in many cases. Now, that is a topic in itself.

Guess, what I would order next time at Karaikudi? May be, a Chicken Manchurian Tikka Masala Kal Dosa! Wow, maybe I should open a fusion food restaurant!

Services Marketing: Lessons from Sathyam Theater

If there is one thing that can be added to the necessities list for Tamilians, are movies. It is a common knowledge that India churns out the largest number of flicks in the world. Hindi, Telugu and Tamil are the top three contributors.

Many film stars are worshipped like demi-gods (in some cases, temples have been built for stars, especially female actors). Almost all the chief ministers of Tamil Nadu state have had an association with Kollywood.

Wikipedia quotes that there are about 2,800 cinema-halls located in Tamil Nadu. Sathyam tops the list with about 2380 seats.

I have been in Chennai for about 17 years now and have watched movies in some leading theaters in the city. Until about a couple of years back, all theatres were pretty much similar. Theatres were large, may or may not be multiplexes. Devi complex was by far the most famous; Albert was known for its cleanliness (once upon a time), and Sathyam, also, existed. I haven’t watched many movies in Ega or Sangam or other complexes.

I am not sure who is responsible, but Sathyam complex today has become the best theatre in town. In my opinion, it is a visionary and has set the benchmark. The makeover of Sathyam is a perfect Services Marketing case study.

As I said, there was a time when almost all the theatres were similar. There would be huge lines for queues; standing in the queue itself was nothing short of torture. Black-ticketing was rampant. Probably for the first coat of paint, all theatres were in a state of neglect. Toilets’ stench would fight with Director’s efforts for a share of your senses. During interval there would be a huge rush (which is not uncommon for anything in India) for snacks. In the name of snacks, there would be uninviting popcorn priced exorbitantly but served in miniscule portions. The seating would give you pain in the wrong place, insects/rats would be your companion. The sound systems were slightly better than the blaring outputs in Amman temples during Marghazhi month.

Then slowly things changed for many theatres, changed a lot for Sathyam. And in my opinion, Sathyam’s makeover presents a great case study. The focus on 6Ps of Services Marketing presents the directions.

As many would know the four Ps of marketing are – Product, Price, Place and Promotion. Some include Packaging. Services’ Marketing has three additional Ps. And these are – People, Physical Evidence and Process.

Let us start from the basics.

1. Product: The basic product that theatres sell is entertainment or movie. Cinema Theatres don’t have much control on the kind of movie produced but definitely have a say in the kind of movies played. Most cinema theatres had rigid schedules which made them reap extraordinary profits when a movie was hit or take a big hit if movie fails at the box office. Sathyam broke this tradition and played more movies and limited the screenings. It created more choices for customers. This way, they also reduced their risk of showing a flop movie for longer duration. Sathyam is also a visionary in adoption of technology. Whether it was in the areas of sound or projection, Sathyam adopts the latest.
2. Price: I must say that Sathyam is not inexpensive but it is not unaffordable, too. I would not like to discuss much about pricing. It might dilute the topic.



3. Place: Sathyam always had an advantage in being centrally located. But it was never a differentiator. Devi, Anand (now defunct), Ega, Sangam…are/were also quite centrally located. What Sathyam has been able to do with the space is notable. It has made approach to the theatre better by ensuring a large car park. Not only that but it also well regulated by professionals. Will discuss people little later. Sathyam is maintained like a five-star deluxe hotel. Please check out the toilets! Car parking, two wheeler parking, entrance, ticket counters, ambience inside, Sathyam resembles an excellent mall. Parking was a problem. On weekends, there is a huge rush to screens and since it is an up market theatre, the crowd usually swings in by four wheelers. Entering into theatre at one point of time was nothing less than struggle. But that is where the proactive intervention from the management comes in. Sathyam has introduced free parking at an annex slightly away from theatre. One can park his/her car and get dropped in an AC mini-bus. I must say, this is customer orientation par excellence.



4. Promotion: The biggest promoter of Sathyam has been the product itself. It has created the best environment for moviegoers. I must here mention that it was the first to bring Internet ticketing. It killed the black-ticket. In marketing, the best form of promotion is Word-of-Mouth and that is what exactly Sathyam has achieved.
5. People: If the facility is maintained no less than a star hotel, the employees conduct themselves like professionals in the airline industry. Smartly dressed, the employees are proactive and ready to assist customers. And at every touch point, parking lots, ticket counters, snack bar, ushers…




6. Physical evidence: Every touch point presents a physical evidence of the customer orientation. It is the best example for an organization which is focused on customers. Internet booking apart, a separate WINDOW ticket to collect tickets booked by Internet. Free car parking is another example. Magic-Hat, the crèche, is another example.
7. Process: The operations is organized and oriented to ensure that I have a good experience. You have to experience it to believe it.

Sathyam is slowly displaying signs of an organization which has consolidated itself as the best theatre in the city and diversifying into adjacent areas. It has recently opened a Blur, a gaming parlor, and ID, an idli-dosa outlet. Mike Besse has been presented for a long time now.

Usually malls accommodate multiplexes. In Sathyam’s case, a theater is adapting into a mall. Whatever be the course, as long as customer orientation is at the core, there is no stopping Sathyam.

Disclaimer:

1. Sathyam has not paid me to write this piece
2. It has never doled out free tickets to me
3. I have never been treated by them with lovely desserts, pop corns or Coke

But I may be open to all the above going forward. Kidding!

Ecstasy picture sourced from http://havenofullstops.blogspot.com/2007/11/connoisseurs-abodes-in-madras.html

Internet Strategy for Indian Politicians

The second most populous nation in the world, India, has a human stock of 1.2 billion people. India also happens to be the world’s largest democracy and the Indian Parliamentary Elections due this April-May will probably be the biggest electoral event in the history.

About 700 million citizens will be eligible to exercise their franchise. 500+ seats, thousands and thousands of aspirants, numerous parties huddles loosely (or tightly) into three (oh no, four. Never mind) fronts. Across the length and breadth of the nation, accommodating almost all terrain possible on planet Earth.

Welcome to the World’s Largest Democratic process!

Despite being a developing country, India takes pride in use of technology in this gargantuan process. Not many developed countries can claim to be as savvy as India is.

What really caught my attention this time was the use of technology by political parties to position themselves as the party of choice. In this case, I am more interested in parties using the Internet. I have seen BJP’s LK Advani on Orkut. My colleague Sonia (not Gandhi) informed me that Congress’ Sonia (this time Gandhi), Rahul, and Manmohan Singh stare you from banners in various website.

Quite surprising! At least, I am surprised.

Why would political parties use the Internet to propagate themselves? The penetration of internet is so low that, in my opinion, it is neither effective nor efficient medium. Internet is medium for the crème-de-la-crème and this number is likely to be miniscule. And most importantly, it is as fragmented as any other medium available.

Let us ponder over the voter base and the reach of different media. We may be able to arrive at a good media strategy for the politicians of country then.

As I had mentioned the voter base of India is around 700 million (meaning people over the age of 18). According to IAMAI, there are about 45 million internet users. We will consider this base 800 million in this article. This is for ease as the IRS studies has taken 12+ population as the sample for its studies on media and Internet as a medium.

According to this report in IAMAI, the number of people who use Internet in India is 45 million. Of the 800 million population, the number of people in the urban and rural India is approximately 250 million and 550 million, respectively. While urban India is savvier, which is no brainer, the Internet penetration in rural India, which is “where India lives”, is abysmally low. In terms of percentages, the total Internet penetration is approximately 6%. Rural India is in decimal figures.



In a stark contrast is the extent of penetration achieved by other media. TV tops at 467 million, publications comes second at 323 million and radio, with its emergence, stands at 180 million.

Some of the leading TV channels, publications and even radio channels can put total Internet penetration figures to shame. Some figures have been provided in this article for you to refer.

So, why are our politicians from the Left, Right and Centre so visible on the IT horizon? Just a small digression, as I write this article, Samjawadi Party has released its manifesto and if I have to believe news reports have decided to shun machines for men.

The problem with media in India is that it is highly fragmented. Primarily, India states have been divided based by the lingua franca spoken in that particular region. For example, Tamil Nadu is inhabited by people who speak Tamil, Andhra by Telugu, Karnataka by Kannada and so on. Each state government over the years has done well in promoting the local culture and language. The role played by local language (or vernacular) medium has to be commended. It will be worthwhile to mention here that according to a study, the number of English speaking populace is only a meager 90 million (maybe it is not meager but the point is that local language prevails). Consider this, Tamil Nadu state has 60 million Tamil (a language which was spoken even before the advent of Sanskrit). Population of Uttar Pradesh (UP), the most populous state in India, is 100 million. The language predominantly spoken in UP and in most part of the heartland is Hindi. Bottom-line, similar to the penetration of Internet, English, Internet’s (un)official language, is pathetically low.



Two, the Indian media is segmented, as it would be anywhere else in the world, based on the content it delivers. General Entertainment channels – Hindi, English, and regional languages, News channels – Hindi, English, and regional languages, Infotainment and Music – channels are primarily English though there are many local language Music channels, Movie – English and Hindi primarily, though regional channels do exist. Internet is also fragmented though the primary use of Internet in India is Mail (91%), Search (76%), Education Information Search (49%) and Text Chat (46%).

And finally, the segmentation based on Socio-Economic classification (SEC). The digital divide is total in India. We have seen that the penetration of Internet in rural India is paltry. Even in urban India where 43 million have access to Internet, the penetration cannot be claimed to be substantial (around 5%). It is no brainer that computer and Internet is used more in the SEC A1/2 section of the society. That again is not big number. Also, I do not think that this section is a large enough vote bank for anyone.



So why? Why Internet? Why are these politicians sprinkling/putting (not betting) their money on banners and ad words? How do they exactly plan to capture votes and imagination of the masses?

As Sonia, my colleague and a strong supporter of the Internet strategy for politicians put it, “it is not for masses but classes. Politicians are trying to reach out to thinkers and opinion shapers.”



Valid point!!! Or is it?

This article is dedicated to Manoj, who commented after reading my piece on differentiation for James Bond, that my thoughts are too frivolous and devoid of any facts or figures. So, Manoj here it goes. I have tried to put as many figures and tried to make this look like a research piece. Thought most is secondary data but relevant.

This article would not have been possible without the help of my very able colleagues who did the research on my behalf. Thanks Sonia, Durai and Rashmi.

If you are interested to read more on Internet in India, please visit http://www.iamai.in/reports1.aspx

Differentiation and Segmentation: A Case of Petro Cards

In order to reduce the usage of credit cards, I decided that I will start paying for my petrol bills from cash-in-hand or cash-in-bank. But on the other hand, gaining those reward points was also something that I did not want to give away. Thus, I decided to join one of the loyalty programs run by the petroleum companies.

I did little research, in the limited time I had. I considered the loyalty programs of Indian Oil and Bharat Petroleum. Incidentally, I had used BP’s PetroBonus™ in the past. This time, I thought I will check XTRAREWARDS™, too.

What interested me was how each of the two companies has differentiated their offerings in the areas of Entry Barrier and Usage.



To start enjoying PetroBonus™, one has to invest Rs. 250 of which Rs. 150 is for processing the account and the rest Rs. 100 can be used for purchases once membership is processed. Thereafter, one has to charge the card with certain value (usually multiples of 100s) which can be used against purchases made at a BP petrol bunk. There is a definite lock-in. there is no need to use your credit card or debit card. This card can also be used at the In&Out stores located in many bunks.



On the other hand, the entry barrier to XTRAREWARDS™ is almost nothing. The card is given to you for Rs. 10. For usage, one can make purchases at the Indian Oil bunk using either credit card or cash. There is no lock-in for users.

There are positives and negatives in both the models but I do not think one is better than others are. It is just a differentiated to suit the requirements of customers. It also allows the segmentation of a very homogenous market.

It is nice to see how these two companies have differentiated themselves while offering the same service.

HP also has a loyalty program but I could not analyze how their offering is differentiated.

Well, I went for XTRAREWARDS™ because I didn’t prefer lock-in and I do not seem myself shopping at In&Out stores.

Anyway, the credit card dues remain a problem for now but I do hope to do away with their usage by the end of this 2009.

CAVEAT EMPTOR: There do seem to be some problems with these cards. I had problem with PetroBonus as I thought the guys at the bunk cheat you by swiping more. Then I stumbled upon this blog on XTRAREWARD - http://www.petrobonus.com/abouttheprogramme.asp