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Kis mein jyada fayda hai ?
Hath mein paise hokar paise banana OR paise na hokar paise banana ?
Trace the history of bankruptcy. They made lots of money. But today they are nowhere.
Ex : Kodak, Nokia, Kingfisher
Every brand started with 0, but became bankrupt when they had lots of money.
You can move from 0 to 100, but then from 100 to 105 it becomes difficult.

It has been observed that after certain stagnancy it plunges down. So How would u like to see the graph ?
Why do they die down? 1. Lack of innovation :
Generally people misinterpret this word with invention. Any improvement done and if it gives money , then it is called INNOVATION.
If it doesn’t give money it is called CREATIVITY.
Ex : Today there is no medicine for AIDS. But if medicine is found then it is INVENTION.
Ex: Different ways of thinking is creativity. There are no examples of creativity.
When creativity gets practical implication and you get money is innovation.
Ex: Steve Jobs was highly creative and what he gave the world by way of his product was innovation.
Innovation is not only in product but also in selling / systems.
Ex : unique ways of selling. Direct marketing. Door to door selling.
All the product was existing in the market. So very innovative in selling.
Ex : Pan Parag
Product was competitive. But no corporate competitors . This was way back in 1983.
But he took the route of paanwala and sold thru them only. Actually they were his competitors.
For innovation, you remember companies like Apple, Google, facebook , 3M ........
Ex: In 3M , employees ( after some hierarchical levels ) were given time for creativity. No questions asked. There are lots of flexibility. They are told You are free to define your working hrs. You are free to spend any time for creativity. Company will provide all the resources.
One person asked : Can they not misuse the same ? HR fellow said : For how many years? After some years there will be some shame. What face he has in front of his team .

So ask company – what are they doing to be creative ?
They expect employees to be creative . This is utter nonsense.

In job advertisement, one will find – we need the best people.
As per the bell curve, we all are average people.

In an organization you will find these extremes of poor and excellent performers. The excellent performers are few and they are will retained by their existing companies. They rarely change. So how will other companies get excellent candidates. They will get people from the average lot. But then the companies need to hire them and then convert them to excellent by providing them the right atmosphere for growth by way of empowerment, training and excellent systems to perform.
Ex : Today if you want to withdraw your own cheque from State Bank of India it will take minimum 30 mins in the bank. But suppose if you go to HDFC, ICICI bank it will not take more than 10 mins. What is the difference ?
Now Try shifting the employees from SBI to ICICI and vice versa. Still you will find the same issue. So what is the conclusion ?
It is The systems and not the employees who make a difference.
An excellent system with average people will give excellent results.
Average system with excellent people will not give excellent results.
Another example is of Indian Railways scenario after it was computerised. The same employees are working. Earlier you used to have fights with them. But today with excellent systems you are praising them.

Build and invest in systems and then you see the results.

Albert Einstein – If you can’t speak simple , then you have not understood yourself.
What level is your problem and what level is your thinking ?

Earlier generation there were lots of inventions.
Today its more of innovations.
Bring innovation in processes and systems

Ex: Before painting the Painter thinks, he visualises – that’s creativity. But what he ultimately brings on canvas is innovation.

2. We don’t do SWOT Analysis 3. Laparwahi

4. Lack of vision
Aankh sab ke paas hai, nazar kiske paas hai ?
Ex: JRD Tata in 1960 set up a power plant though there was less industries at that time. They had more power. But you see today . They produce low cost of power.

Ex: There are many luxury brand cars today like Jaguar , Rolls Royce, Mercedes Benz, Ferrari and Lexus.
Lexus is a TOYOTA brand , but nowhere they place this along with their other cars. Chasis, cost of production and place of production is same. They are selling it 5 times more than their other cars. Why ?
Its a conscious decision to keep it different and unique and give customer a different experience to the cost they are buying at. Its a unique customer feel. They have a totally different distribution system across the world. Never said its a TOYOTA brand. This is a VISION.

Ex: Kodak – Never thought that imaging will go and digital will be the future. They were one of the fortune 500 companies. Where are they now ? Lack of vision.
Ex: Godrej . They could have become one of the largest computer selling company in the country. They never changed as per the time from typewriter to computer. From every small company to large conglomerates they use Godrej products compulsorily for their lock, typewriter, cupboard and vault. But they lacked vision to get into computers.

5. Attitude – Who’s going to remove me from th first slot. Im the KING.
The company is in the comfort zone – arrogance has crept in.
Not ready to take any risks. If one is not ready to take risks, then taala zaroor lag jayega.

Who puts lock in the house – Huts / Flats
Why – For security

Ex: Circus Industry – What happened ?
The industry is dead. Why ?
No innovation. No value for money.
There is safety net for every act. In 1960’s there was no such net. This only came after 2000. So it lost its sheen.
Earlier during the trapeze act, no safety net was provided. There was no incident of man falling during the act because he was aware that there is no net.
So he practised it perfectly .
Now net has been provided. There is lack of performance. He falls down, waves to the crowd and goes back again. Earlier he used to give perfect performance out of fear of death.
Has our business become CIRCUS ?
V hv safety nets everywhere. Safety and innovation cannot go together. We have stopped taking risks. V hv left risks..

Hunting and Farming.
The business world divides salespeople into hunters and farmers. Hunters generate sales by prospecting for new business; farmers generate sales by maintaining and enhancing existing customer relationships.
For hunters, the traits included "goes out of his way to get new business," "the first thing they think about every day is 'kill or be killed,'" and "they live for the moment and then move on to the next target."
For farmers, the traits included "laid-back personality … works better with a routinized customer assignment," "tend to be more analytical and amiable," and "they focus on doing the right thing with the customer instead of 'I sold something.'"
"If you are a promotion-focused person, you value gains much more than losses," DeCarlo said. "If you are prevention-focused, you are more likely to say, 'I want to maintain what I have, I don't want losses.' You tend to follow the rules and maintain customer relationships."

Those revealed that "ambidextrous" salespeople who pursue both hunting and farming orientations are more efficient and have higher profit margins.

So Hunting is first. Then you do Farming. Farming, Farming and then Hunting again. This is the cycle. So Farming is secondary and it relates to growth. Now land has limitation. After sometime the land loses its fertility. There is a saturation point in every business. Then you start Hunting again.

Case study : HMT, NELCO, Murphy, Hindustan Motors…… what happened?
They died during farming. Its great to die during hunting but not during farming.

Hunting is always something new. Whatever money you get from farming , it should be used for hunting.
Why brands fail ?

I made money .
So I was right.
So I used the same formula of success
Consciously and sub consciously.
This is the root cause of disaster.
At that time , economy was supporting it.

Definition of Stupid
Is a person who does same things continuously and expects different results. It is inertia which stops the growth
Organizational inertia is the tendency of a mature organization to continue on its current trajectory. This inertia can be described as being made up of two elements -- resource rigidity and routine rigidity. Resource rigidity stems from an unwillingness to invest, while routine rigidity stems from an inability to change the patterns and logic that underlie those investments. Resource rigidity relates to the motivation to respond, routine rigidity to the structure of that response.
In the face of rapid or discontinuous external change, it is the organizational inertia that must be overcome if a firm is to survive. In a competitive situation where new players are entering the industry, it is the incumbents that are particularly susceptible to the downside of this inertia. In this case it is often referred to as incumbent inertia.
Overcoming organizational inertia --
Threat perception in organizations experiencing discontinuous change is often thought to be the impetus necessary to prompt organizational change, a change in inertia, by decreasing the current inertia through changes in resources and routines. While threat perception is a response catalyst, it has been found to decrease inertia in some cases, a good thing, but increase inertia in other cases.
Ex: One channel starts dance reality show, you will find all other channels following the same pattern.
One news followed by every channel showing the same news
One brand signing Amitabh, other brands following the same….
One brand safedi…..another says safedi se safed
This is inertia. People stop thinking
If one adds systems when disorganized , then you become Organized. Without proper systems you will always remain disorganized.
Ex: What happened to TITANIC. One of the top 10 disasters . Why ?
They were too confident that it will never sink. Then why it sank ? Not due to iceberg. They were not able to manoeuvre the ship when they saw the iceberg – obstacle because the speed was very high. It was too late. They assumed a lot. Overconfident.
Another example is KODAK. Did not change from physical to digital.
Are you going in only one direction ? So are you ready to manoeuvre ?
Change before you have to.
Exercise :
Arrange these four words in ascending order from the business sense.
Delegate, Co-ordinate, Creativity and Direction
Lets understand the meaning first.
Delegate : is basically giving authority and responsibility. All this is required in business. You cant do everything on your own. In an organization there are different levels of people . Its like a pyramid divided into 3 categories or levels. Top Mgt, Middle Mgt and Lower Mgt people. But you then relate them functonally to inverted pyramid wherein the top mgt is more into Strategic function, Middle mgt is into tactical functions ie manages the division and the Lower mgt is into operational day to day routine function.
But then many proprietor owned companies love spending their time on operational issues like attendance, monitoring video cameras, security, pantry……They want to have personal control . Its Let me do it attitude.
Golden rules for delegation:
When you are giving your shop or flat for rent, what you do ? You do validity check first and not afterwards.
So first delegate to your best person with capabilities and competence.
List all the work you are doing.
Divide your earnings into hrs. Ask yourself whether this salary is worth the job you are doing at present. You will find 80% is not worth to be done by you.
We all are busy most of the time doing Operational and Tactical work rather spending time on Strategic function.
We tend to behave like mother in law in the corporates – concentrating all routine jobs, fault finding and behaving very arrogantly.
Who comes to your mind ? Einstein. How does he look ? Very shabby, disorganized, eccentric.
Creativity is considered to be essential for societal and economic growth. At the individual, team, and organizational levels, creativity has been argued to be a key enabler and contributor to performance, entrepreneurship, growth, and competitiveness.
Creativity has been defined in two ways: as both a process and an outcome. It is believed that in order to produce creative outcomes, it is important to first engage in certain cognitive and behavioral processes (e.g., linking ideas from multiple sources, broad search) that can help enable individuals to be more creative in their work.
Creativity as an outcome has been defined primarily in management as the generation of ideas, solutions, or processes that are novel and useful. Novelty and usefulness are both considered necessary conditions for something to be regarded as creative, so even if an idea is very novel, if it is not also useful or feasible it would not be considered creative.
Creative people die very poor. They do not like systems and procedures. For balance, systems is required.
If you generally ask people when they were very creative, they will say when I was very young or when I started my career. But then what happened now. Ohh now I don’t use my brains as Im not allowed to . Boss says : main jo bol raha hoon wohi karo, apna dimaag mat lagana.
It is concerned with managing the members of the organisation. Directing is the managerial function that consists of those activities which are concerned directly with influencing, guiding or supervising the subordinates in their jobs. Direction balances creativity.
It means integration of all activities. There should be co-ordination of work and not people.
If one is not clear of this, then one will never be able to delegate.
Todays event – what would have happened if there was no proper co-ordination ?
So what is the sequence of the above 4 words.
It is Creativity, Direction, Coordination and Delegation. i.e C-D-C-D
Ex: A R Rahman – He thinks about music. i.e creativity. Then he has to give direction. He then co-ordinates and lastly delegates.
Todays corporates are run like hospitals. More of ICU and emergency wards crisis management.
So one has to change one’s PERCEPTION – Nazariya. The whole world runs on this concept.
How it happens ?
By seeing.. by experiencing…and by listening ….. to others experiences.
Ex: Air India – Is there anyone who has not travelled by Air India? If NO, Will you ever travel by Air India. NO.
How many of you have travelled by Air INDIA? Will you travel again ?. NO
Whose opinion is most dangerous? This is POWER of Perception
Perception is the way we all interpret our experiences. Once registered in the mind, very difficult to remove.
If one travels by Air India and then does not have good experience, the other fellow who has not travelled will say – I knew this was going to happen. That’s why I will not prefer AI.
Now watch this latest Advt 2015. What is your perception now ? Compare with Advt 2005.
Perception created career and brands. It also destroyed career and brands. How come career?
Ex: Arun Govil. What comes to our mind. Lord Rama in Ramayana. Well today , he I no where. He was 36 when he played that role. Good fame across the country. People in interiors also recognized him and touched his feet. No one remembers him now. No one gave him any role as he was slotted in Lord Rama’s role. His career is finished .
Ex: Amjad Khan. Gabbar Singh. In one of the TV interviews Phool Khile Hain Gulshan Gulshan by Tabassum, he was asked if u were to take re birth again and Sippy made that same film , will u take up the role? He said he will go and hit him as he was the one who screwed his career. He got slotted in that role for ever.
Ex : NTR / Prem Chopra / Munnabhai
Ex: You are seeing a cricket match. Tendulkar and Dravid are batting. You went to another room for attending your phone. Suddenly there is a sound , scream and Sixer. You are not aware who has hit six. Who will you assume. Of course Tendulkar. But then it was Dravid. Will you be able to believe? You will ask Are u mad? You will then ask them for replay. This is self disbelief.

How many times this has happened in your life?
Ex: Nano / Ferrari – Both have made their stand clearly.
Ex: One fresh MBA student was very clear of joining only Ad Agency. On first day in office, he gave sweets to all. Everyone told him – Beware of your boss. He is harami No 1. What is his perception of his boss?
Marketing lessons from Kellogg’s Indian experience

Kellogg’s is a name to reckon throughout the world. It is the company that introduced the concept of Corn flakes as a breakfast item throughout the world. They have taken on markets where corn flakes has never been very popular as breakfast and converted them into corn flake eating nations over a long period of time. They are experts in changing breakfast eating habits of customers’ across the world.

In the early nineties Kellogg came to India with lots of hope and confidence. The Indian organized breakfast market sector was expected to roll over and die. After all Kellogg’s annual turnover was so big that the Indian organized breakfast sector was written off even before the skirmishes started.

Kellogg did lot of home work and launched its products in India. They had the best products, packaging and their marketing strategy was excellent. The advertising campaign was handled by a leading Indian advertising agency.

Kellogg did not do as well as expected. The witch doctors (read marketing research firms) were called in. The research findings were very surprising. The areas where Kellogg went wrong include:

1. Kellogg pitched itself as an alternative to the regularly consumed breakfast. The Indian breakfast is heavy and there is a feeling of fullness at the end of an Indian breakfast. What with oily Parantas, Puris and Dosas, the feeling of fullness is real and not imagined. Kellogg’s Corn flake breakfast does not give that feeling of fullness and that went against the grain of having a total breakfast. In short after having a corn flake based breakfast the Indian consumers were still hungry.

2. Indian breakfast is known for its variety. There can be 30 types of Dosas (there is a restaurant in Hyderabad that offers 99 types of Dosas!) or Idlis, Parantas or other types of native Indian breakfast items. Indians are used to a variety and one item that is eaten will not be on offer for the next two or three weeks. Asking Indians to have the same type of corn flake based breakfast was too much of a cultural change for the Indians to accept.

3. Indians have spicy and hot food for breakfast. To ask them to eat the sweet tasting and cold corn flake breakfast was too much of a sweet breakfast for the Indians to digest.

4. Kellogg in its advertising campaigns hinted that the Indian breakfast was not nutritious and that Indian breakfast was not very good for health. This deeply hurt the sentiments of the home maker. The home makers said to themselves “We have eaten and served the Indian breakfast for decades and centuries. My family is doing fine”. Once the home maker’s ego was hurt they psychologically turned themselves against the concept of corn flake based breakfast.

6. Kellogg corn Flakes have to be consumed with cold milk. Indians have be taught right from their childhood that milk has to be consumed every day and that milk should always be consumed hot. In a tropical country that is very logical. If the milk is bad once it is heated it will become undrinkable. So for the Indian family eating corn flakes with cold milk was unbearable. So hot milk was poured over the corn flakes. Once hot milk is poured the corn flakes become soggy and there are no longer tasty and edible.

Another reason for the low demand was deemed to be the premium pricing adopted by the company. The prices of its products were way too much than the nearest competitors like the Mohan's Cornflakes.
Kellogg Mohan's Cornflakes (competitor)
Prices Rs. 21 per 100 gm, Rs 16.50 for 100 gm
Focused on Affluent consumer Mass consumer
Market comp Premium and middle-level Small-level consumers & retail stores as well

The failure that the company witnessed with its launch, did not stays for longer. The mistake that the company did initially in judging the Indian market was revamped as soon as company realized that the long continued policies is not going to work here. There were several factors that lead to this progress.
Prices reduction
Kellogg’s increase the retail packs of different sizes to cater the needs of different consumers group
Kellogg’s repositioned the product as tasty nutritious food
Products were not positioned in premium categories
Indianising the products by introducing the sweeter product
On ground promotion activities like Kellogg health week and free samples distribution in schools and to housewives.
Projection of products as ‘fun-filled' brands rather emphasizing only on the “nutrition value”. Market Share of the Kellogg’s Brand
Year Market Share
1995 53%
1998 More than 55
2000 More than 60%
2010 More than 66%

But then it took 20 years. Are you ready to wait ?

Ex: ITC getting into garments and apparels. The general perception is that they are cigarette mfg company.
When there is perception, damage is more. But when there is no perception, not much damage.

How things are changing today ?
We all are getting into JUDGEMENTS.
Demographics are changing. In todays children you will see lots of EGO. There is no humility.
There is no Tolerance.
Ego is inversely proportional to Tolerance.
Who had more tolerance. ? Your Grandfather, then your Dad and then yourself and then your children. Tolerance has decreased a lot now.
Todays generation has no tolerance and no loyalty . Why ? Because they have various options.

If you want to survive in todays business, treat your business as Service. Take it to the highest level. Create perception of service .
Service will cool this generation. Today there is not much differentiation of products. There is only difference in service. It cannot be copied because you require Attitude.

Only few brands are remembered. Nobody concentrates on service, only they are doing R&D on products. Then is Communication.

Both Service & Communication is difficult.

Ex : Miscommunication – Once a boy entered in a shop. A lady liked him and related with her own son. She wanted to be in touch with him. So she asked, Can I call you son?
He said , Sure You can call me son.

If you want to give excellent service * Be PROACTIVE – Bina bolke * Do it CONSCIOUSLY * Be CONSISTENT

Inconsistency gives tension. 2S ( Systems and Standards ) and 2R ( Repeatable & Reproducable )

If you are in a Cricket Committee and you have to choose between Sehwag and Dravid. Whom will you choose ?

Service standards can be improved everyday but not products.

Todays generation @ 12 – 16 yrs have international experience. They want everything good service and quality. They have various options. No need to struggle .

In China Walmart’s service had a set back. They were standing and serving. Chinas culture felt too much of interference while shopping. You cant make people to wear same shirts everyday.

Ex: Different Airlines services. Southwest Airlines is the best. It started with low fare cost. Worldwide other brands are suffering but not Southwest Airlines. We would like to share one case story of exceptional customer service.
Earlier there used to physical hard copy tickets given by the agent. Today we have e-tickets.
At one of the immigration counter one passenger was standing in the queue and suddenly he got angry with himself and was leaving the queue. The customer associate at the counter saw him leaving and called him and asked about the problem so that she can solve the same. He said that she will not be able to solve as he has not got the ticket . He left in the hotel. As time was running short, he was also losing patience as he had connected flights to various destinations. The CA politely told him not to worry and he can board the plane with duplicate copy which she shall issue. But then he asked what about my connected flight tickets. She told him not to worry.
He boarded the flight. When he arrived he was received by SW staff and was given copies of other tickets . they said that his original tickets will be couriered to him as the CA had sent someone to his hotel to collect his tickets. He can safely travel now. This was customer delight.

Ex: JW Marriott – In their service training they have been taught that NO CUSTOMER IS IRRATIONAL.
What does this mean ? It means he will not ask something which they don’t cater or will not be able to provide. Its like no customer will ask Idli in Mcdonald. Every customer is rational.

Next they have been told to say Sir It will be done. Anything more Sir
Customer will not ask any irrational service.

Practice the above – PROACTIVE, CONSCIOUS & CONSISTENT while giving service.

Story of Service & Innovation
There was a businessman from US who went to China. He went and stayed in a hotel which provided him very excellent hospitality. After three years he went to the same hotel. To his surprise, the Hotel receptionist welcomed him by saying- Welcome back again Sir. He was shocked. He did not sleep that night. It was not the same receptionist.

Again after two years he visited the same hotel. Same welcome and now again from a different male receptionist. He took him aside and asked him. Pls tell me how come you all know that I stayed in this same hotel before. He said that the taxi driver you converse with him gets all the information and gives to us. This is the secret .

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