Irreverent Communication - Is it wise? Does it help increase sales?

Cheeky  Communication instore may not be common, however it is there and is worth exploring. why would a store resort to this and does it work?

Communication such as these can be put up only by stores that do not belong to large corporate chains with central advertising departments. The quirkyness can only come with a real 'freedom' of expression. Such a freedom, in my opinion,  comes only with being the owner and being very confident about customer walk-ins.

Such in-store communication gives the store a distict identity ( positioning), improves recall and helps customers have a smile, which is one way to increase spend levels I believe.

Cheeky, irreverent, non-conformist.......whatever you call it, it is powerful, personal, and proficient.

Am sure you have seen such communication. Do share your pictures or examples here.

IKEA - Helping customers buy....more?

IKEA has many interesting facets of customer experience management including providing names of the designers for each item of furniture, providing restaurant facilities at reasonable prices within the store and simple and easy to understand info-graphics throughout the store. The understanding of customer path to purchase ( to use Shopper Marketing taxonomy!) is impeccable. IKEA has insights in every minute detail of what is happening to the customer at the physical store and in her mind as she goes through the store. The most interesting part is that, everything seems obvious and based on simple common sense.  As an example,when you want to buy furniture you need to measure furniture and space you have for it at home, or that 'matching' is important in decor.........obvious and simple common sense.

My visit was to the store in College Park, Maryland, USA. I am limiting this post to one component of the experience which has to do with the leaflet and purchase planner so that I can describe in some detail these shopping aids, rather than providing a general overview.

On one side of the leaflet is a map of the store which is divided into a showroom, market place and self service. The showroom is full of displays in well designed bedrooms/kitchens/drawing rooms to help customers see the products 'in use'. The market place is much like a departmental store for knick-knacks and smaller items and the self service floor is much like a large warehouse where one can pick up packed and ready to assemble furniture.

The leaftet maps out the various departments and in a fun and clear way explains the shopping process to the client including post purchase activities.

The leaflet has space for planning the purchase. For example you see a table you want to buy displayed in the showroom. Write down the product code and where it is available in the self service area so it is easy to pick up on your way out of the store.  A shopping list with details of what price, which aisle located is a real support and memory aide.

I found the measuring tapes (made out in-expensive paper) and short pencils a real simple, obvious, and comon sense giveaway that adds tremendous value. I saw many using the tape to measure furniture items and also the pencil to write down details.

 

IKEA has really planned the store, and so many small details to maximise shopping pleasure and provide for the retail therapy that it is difficult to believe. Food at reasonable prices and free coffee for loyalty card holders,  customer printing additional loyalty cards ( super naming as 'family card' ) to help co-shoppers in the family .....the list is very long. The single point I want to make is that 'god is in the details' holds very true for customer experience management. Planning for every small touch point and executing with clarity and flawlessly are key.

Culturally relevant retail formats? The 'Grandhige Angadi' in Bangalore

A key differentiator between retail formats has been the merchandise mix carried. Generally speaking
Super Markets focus on food and consumables, wheras a speciality store could be a jewellary store, a Footwear store or an apparal store.

In Malleshwaram and in Basvangudi, which are the older residential areas in Bangalore, there is a niche format called 'Grandige Angadi'. The literal translation would be 'Perfumary Stores', however the format is the greatest example of how 'scrambled merchandisng' can be a profitable and sustainable format.

 

At Mr T.V Sampangi Ramiah's shop which was started in 1934, the merchandise mix consists of a eclectic mix of perfumery used for religious ceremonies, herbal medicines, niche food products ranging from the Jaggary balls in the picture, candied gooseberry, dry fruits , uncommon herbs,vessels used in religious ceremonies from child birth, marriages to Hindu funerals, and, the fast moving 'Puja items'; which are essentials for Hindu festivals which occur throughout the year in India and surely more often in Malleshwaram. Observe the storage of many items in polybags, as the frequency of sale for many of the items may be very low, making it neccessary to make merchandise 'bright and shiny' even after years on the store shelf.   When asked about his merchandise mix Mr. ampagi Ramiah said 'When you cannot find it in any other shop in Bangalore shop, you can find it here'

 

The shops next to the 'Grundige Angadi' sell Vermilion and Turmeric both items which are available in many qualities and the orthodox Hindu will use only the best quality as offering to the gods.

The wheel of retailing theory does not seem to have impacted these shops with scrambled merchandise, even as they might have started as shops selling Perfumary and moved into culturally specific scrambled merchandise.

How can you have a 'High Performance organization' when the leadership is not authentic?

In the last few weeks, I have attended two workshops on 'high performance organisations' and going by the veriety of participants it appears that this is the buzz word now. While there are many habits of high performance organizations, Mr Mali Mahalingam who conducted a workshop chose to talk about commitment of leadership, and a culture that instils a deep sense of urgency; where Managers play pygmalion, have robust dialogues, and focus on strengths. To elucidate these habits a number of examples, case studies, quotations, and group activities were offered and every minute was well spent and I enjoyed the workshop.

On reflection, the single most important reason, in my experience why Indian companies fail to be high performance oranizations, is the lack of authentic leadership. Leadership generally pays lip service to many 'people management' essentials while continuing to live in ivory towers. Achieving the balance between people and results, or between quarterly performance and sustainability are mostly in the top leadership domain, not given any importance, mainly because people in top positions ( can we call them leaders? that is a different discussion!) are insecure, self centred, and looking forward to events for immediate gratification.
My brother in laws new book is a refreshing and essential read in this era of living in the clouds when the real need is to have ones feet firmly in the ground.  Do have a look the book
http://goo.gl/KdXn5O  and his website http://goo.gl/zkPWa0
Maybe it is a cynical view, I think it a view formed over many years of observing and toiling in the world of business and generalizing what is most common.....It will help a great deal if you write in to share your views and experiences. Start thumping out your comment..now !

 

A letter to my son on his getting a first real Job!

Dear Prithvi

 I am proud to hear that you will start your career in the corporate world. Based on my experience and understanding there are a few, mostly obvious, things I think will stand you in good stead when you internalize them.

101% honesty and transparency in every small detail is essential. It is not only about being honest to the core; it is also about others having that opinion about you. When you forget to collect the bill from the taxi driver, it is best not to claim that amount. Yes drinks are always on you and it is absolutely right that you pay for them always. Settle all advances as soon as possible. When someone reminds you about settling an amount, it means you broke this code.

Be Confident always. You were chosen for a particular job by people who know more, as being suitable for the position.  However being self- assured and insolent is a thin line!

Be a good finder. A colleague generous with compliments is a welcome member of any team.  However, being generous with compliments and being sycophant is a thin line.

Be Loyal. Loyalty is first to your profession, then to your organization and a bit to the individual superior who teaches you. Yes there is a hierarchy of loyalty and it pays in the long run to understand this .

 Keep 3-5% of your pay for expenses that are essential for your assignment/career which you cannot charge. Things like books, chart paper, additional stationary, professional design fee for a presentation, conveyance, coffee for a customer, are some of the things that might have to be covered by individuals not chargeable yet so critical to make you feel comfortable and required for making the most of the assignment.

Opinions are important. Voice yours always. Let your superior know that while you share your opinion you will finally follow instructions.  The difference between voicing differing opinions and insubordination is a thin one.  Choose the right opinion to support rather than who you think is the ‘right’ person. This is the single most important part of being on the right side of office politics.

Having the helicopter view (or what is referred to as the IPL view, because the camera zooms in and out) and seeing both the forest and the trees is essential. This is a skill we develop over time to have the big picture and getting into minute details at once.

Be grateful for your job, education, colleagues and express this often. It will remind you how interconnected the world is.

There cannot be a healthy brain in an unhealthy body. It is crucial to devote time regularly as a habit to exercise and meditation. This is all the more needed when there is pressure at work or long hours of work inside an office.

Take initiative at work. Do not wait for instructions. When you are sure something will enhance the quality/efficiency or output, just do it. People like to be led by people who take initiative.  Take Initiative not only in matters of work, also in wishing a colleague on an achievement or picking up the paper on the floor.

People like to work with friendly people, positive people and those with a smile on their face and spring in their feet. Be that, and, never the grumpy, complaining, long faced colleague.

Am sure you know all of this and much more as I am old and you are new. It is just my view that these are timeless values and fit in any organization and period of time.
When you are stressed about a situation, quickly make a analysis about what could be the worst case and understand that the statistical probability of the worst case becoming real is close to zero.
One last thing, something I have told you enough times to bore you, that  'Balance' is the most important word in our lives dictionary.

Wish you all the very best in your career. May god give you happiness, prosperity, and the opportunity to serve humanity with your work!  My prayers for your well- being are constant.

I am a really proud father and am sure you will do well in everything you do.

Love

gps

Indian Retail: The beginnings of a price war?

At an Easyday outlet in Mysore I saw these two shopping carts displayed for price comparison. The competitor was mentioned. The saving for the basket of monthly needs was about 4%. I am not sure if one would shift loyalties for a 4% difference considering transport costs that includes time, money and behavioural costs. This may be a indication of how things will progress in the next few years or with a international retailers buying up Indian firms is this only be a short term tactic?  We need to wait and see if the customer gets better value or short changed.

The new definition for 'Bangalored' !

It appears that the term 'Bangalored' can well have a new pan-India definition. In Bangalore most advertisements are aimed at the north Indian. Even traditional local businesses like PN Rao & Sons, which is a bespoke tailoring establishment, Maiyya's, a local chain of vegetarian restaurants, and Manipal Hospitals all target the north Indian living in Bangalore. Most of them have the entire radio advertisement in Hindi, while the rest use Hinglish with string of family relationships ( Mousi, Buuaa, Bhai Saab, Tauji) all of which surely foreign to the ethnically local bangalorean. In just a few years you will hear a few bangalore kids saying ' Kannad ( sadly not kannada !)  is  my grandmother tongue, so I cannot speak or understand it!

Advertising is just one marker. You observe changing food habits, eat out joints, movies, wedding rituals (the Mehndi/Sangeet ceremony is a hit among all South Indians living in Bangalore who can afford it!) And what about the Dilli bling which is fast catching on ?

When a South Indian city becomes  North Indian friendly ( euphemism used so that I have no trouble!) we can call it Bangalored.  Good thing is that this has not much to do with losing jobs for locals. The town in Haryana which is importing plenty of brides from Kerala can also call itself 'Bangalored' when the town becomes malayali friendly.

Namma Urru Bangalore, Banni Koche kalasabitu hogi!

Some 'other' essential skills for managers

I was recently at MES Institute of Management as a special invitee at the college day. The following is what I remember of my talk

Respected Chief Guest, members of the managing committee, Principal Prof Rajaraman, faculty members and all the young women and men who are here, a very good afternoon. I am really grateful to Prof Vijay kumar and Principal Rajaraman for giving me this wonderful opportunity.

When JK Rowling author of the Henry Potter series was addressing a similar function at Harvard, she mentioned that she did not remember even one word from her college annual day speeches.  You can therefore relax and get ready to forget everything I am going to say .

Today I want to talk about  four skills that managers need. All of us are managers because management generally deals with managing oneself, managing teams and managing the business. Apart from skills like communication, handling stress, using excel all of which you must have heard many times, and I see your college has experts to help you with these, there are a few essential skills managers and leaders need to have.

The first one is HELICOPTER THINKING: Have you heard this term? You have seen how a helicopter can move up and down. It can see the forest and then the tree and then the forest again. We need to see the bigger picture, the long term and at the same time look at the smallest details. For example in planning this event one needs to know the objectives of such an event, the calender and then also finer details like how the wick for the Inaugural lamp will be prepared and seating order . Every issue has a broader and a more granular aspect and we need to be able to have both these views. 

Another important skill good managers have is the ability to do some ‘impact analysis” on decisions or choices they are going to make.  It requires practice to develop the skill to imagine the consequences of our decisions or actions. It needs some foresight, some imagination to understand in advance what might happen as a consequence of what we do. When a shopkeeper reduces the price he is able to guess what the competitor might do, how much increase in sales is possible, How customers are going to feel about his shop if price reductions happen often.

 Many times we rush into things without thinking through the issue. Make it a habit to anticipate the consequences and your decisions will be much better. When the faculty gives an assignment, you can do a sincere job of it or you can cut copy and paste from google. Both these have different long term consequences on your learning.

 

 

 The next skill we need to succeed is that of networking. Many large organizations recruit based on references. In this complex world it is not possible to solve all the problems ourselves. Networks can help us solve official problems, career problems and even our personal issues. Network is not only face- book friends who were class mates. The quality of a person’s network is measured by the number of people as well as the variety of people one knows. It is good to know CEO’s, government clerks, the vegetable vendor, and people from a variety of professions and industries. Networking is not difficult. We must be friendly and willing to express opinions and listen. Keeping in touch makes a network alive.

Whether it is building a network, working in an office, at home, college, or in relationships, one skill that we need is active listening. Listening is different from hearing. We must listen to understand. Mostly we listen to respond. Listening takes lot of practice and the desire to understand the other person. One inherent problem about listening is that while I speak at 150 words a minute, your brain can process 500 words per minute. So you have 350 words per minute to devote to Anshuman khurana or Anushka Sharma or noticing how bald this speaker is or some other thoughts which I cannot describe.

Is there any student here who can list the four qualities I was trying to discuss? Anyone?

Another request I have is that you must all try to be on your own. There are many opportunities for entrepreneurship today. Money is available and what we need is business ideas and perseverance. The 9 to 5 job was an invention of the industrial revolution and to get 'economies of scale'. The british rule only buttressed this attitude in us. India is now free in many ways and I urge you to find something to do on your own. Business does not mean big business alone, even a small business has great potential

Thank You for the opportunity. All the best in your careers and have a great cultural event in the afternoon.

 

 

 

 

Rampant Green Washing

The number of Indian consumers who want to buy 'green' products is many times more than the number of customers who actualy know 'what' green products are. Is it real concern for the world we want to leave behind or another fad? More like a endearing 'status symbol' maybe! Whatever the reason people want to buy green products, manufacturers are raking in real big by green washing products that are made to appear green even if in fact they are not so green. Indian food laws do not help, nor are there laws to ensure sufficient disclosure in other product categories.

Take Britanna's modern bread for example. The multi-grain bread has bold and colorful display on the pack about the various cereals used to make the bread. When one consumes the really soft white bread and starts looking for details, one discovers that there are none! The proportion of the various ingredients does not require to be mentioned. Similarly there are many electrical/electronic products claiming to be eco-friendly and there is no need to submit such claims to any independent test.

MTR has recently launched multi-grain dosa, oats idli, and a slew of healthy (healthier??)breakfast options, all of them will do well in this 'green wannabe' market, however, how are these dosa's healthier than the original and also  how much better (relative benefit) is a clouded area with neither the manufacturer nor the government (any disclosure requirement) giving the consumer any information.

Look at organic products. All high priced and doing extremely well. One can use the expression 'made with organic ingredients if 70% of the product is made from organically grown products. Even to use the expression 'organic'  5% can be pesticides/chemicals as 95% must be free of these.

Another large market is for healthy tea. Must be greater than Rs.500 crore p.a  already and growing. There are black,white and green teas, however the most successful health tea brands do not contain any tea leaves at all. Do customers really know this? Should they be informed?

Food product labeling is a very interesting area where manufacturers can ride a large uninformed market until  someone does something or the customer understands, usually after the manufacturers have completed overflowing their coffers by selling a healthy dream. That is still fine for other products, however food to me is another matter. 

Retailing sarees in Kanchipuram

Mr. Kishore Biyani's book 'It happenedin India'has made pondy bazar in Chennai a pilgrimage location for every student of retailing in India. Having been to Pondy Bazar many times, I have now discovered a retailer that Mr.Biyani needs to visit! A S Babu Sah in Kanchipuram. Located ina street that has atleast 20 other saree shops, 95% of walk in's are to this shop. it is large and has a great variety, however it is difficukt to get 'service' as we understand it because of the huge rush. When you have indicated that you are buying a few dozen sarees for a wedding then they have a person to bring out the wares for you based on your choice of color, budget, design etc.

A really crowded shop in an almost deserted shopping street! I spoke to a shopkeeper ( located on the same street) as to what the reason for the popularity of AS Babu Sah could be and more importantly how none of the customers visited the other shops in the street. His reply was telling. He said " We all have the same sarees, however, godess lakhmi has lost her way out from this large shop with so many nooks and cranies" I asked again with a more serious tone and he replied " The range is very large and that could be one reason and the other is that it is a family business where the family works together and it is a large extended family, so hats off to the elders of the family"

No photographs are allowed, still worth a visit to learn about wiping out competition!