On the fast track in a slowdown

Jagdeep Kapoor

A few months ago, a prospective client came to my office with the hope of building a strong brand in the FMCG market. He had no experience in the FMCG category and was a significant player in the saree market. Though his hope and desire was to participate in the FMCG market, his concern and worry was that in these slow times for the FMCG market, would it be appropriate to launch a new brand. I said yes.

We need to find a gap in the market. I recommended the salt category and today the launch of Dandi Salt is successful. His next concern was whether he would have to sell on 15 days credit or 30 days credit.

I recommended to him that with the right positioning strategy, and with the relevant advertising and distribution and pricing strategy, we would not have to give any credit; in fact, we would market Dandi salt through advance demand draft payment. He found it unbelievable. But today, three months after the launch and 560 distributors in over 500 towns, he fully believes that it is not only possible but also desirable provided the right strategy is implemented.

There are many instances in the industry, whether declining, growing or static, where the specific brands have grown through correct brand strategies.

Even in the down market, there are several success stories of my clients such as Mother Dairy, Safal Peas, Anchor Toothpaste, Navneet Publications, Aptech Arena Multimedia, Monginis and Seven Seas. Hence, I would recommend a good brand strategy so that we can be on the fast track during the slowdown.

The market is in the mind. If you think there is a market, you would be able to capture it or be a significant participant in it. If you think there isnt a market, then you start off on a pessimistic note which may not yield positive results. Hence, to begin with, you must be a believer and have a positive attitude towards market and marketing.

In the last few months, there has been constant talk, nationally or internationally, of a slowdown.

However, it is more psychological than real, in my opinion. Hence, the need today to share with you the ways in which you can be on the fast track with these strategic tips during this psychological slowdown.

My recommendations are:

Be fast in your mind, dont slow down: Many a time a self-fulfilling prophecy comes alive. If you behave and think slowly, actually you are slowing the pace and blaming it on the market. Hence, you need to think fast and be proactive in your marketing strategy. The key to this is constant and quick responsiveness to the needs and opportunities in the market.

Drive the market, dont get driven by it: There comes a time in every company when market conditions and circumstance seem to overwhelm the marketers thoughts and there is a tendency to follow the herd instinct.

If everyone is accepting the circumstances and following the beaten path, you need to look at the whole scenario differently and turn the tide rather than get drowned by a tidal wave. Therefore, it is important to go ahead and take brand marketing initiatives which are fresh and have to rejuvenate the market place.

Demand does not decline, it shifts: When we feel that the market has got saturated and then come to the conclusion that the demand has dried out, we must think again. It could be a mental trap which you are falling into. In fact, it could just happen that the consumer now wants a different form and maybe there is a different segment waiting to be tapped. All these are shifts in demand and not declines.

Don't panic and press the nuclear price button: Most marketers inappropriately panic and slash prices. It is like starting a nuclear war. Price cuts could be resorted to only as a last resort after all marketing initiatives have been tried or should be done in conjunction with other positive brand and marketing initiatives.

An isolated action of price cuts could signal desperation and lead to a further drop in sales. Hence, it is advisable to stay cool, calm and collected and explore all the brand and marketing strategies before jumping into price cuts.

Have a sound brand marketing strategy in the first place: Most companies which bear the brunt of these times are those which do not have a sound brand marketing strategy in the first place. Hence, they wilt and sink at the first sign of the storm. Your brand marketing strategy should be on a strong foundation, like a lighthouse which even amidst the storm in the seas, guides ships safely and surely to their destination. Brand marketing strategy is one of the most critical components of a strong business. It is vital for growth, whether in times of boom or gloom.

As mentioned earlier, I am a firm believer that the potential of the market is in the mind of the marketer. Many a time, companies try to blame their performance on a very easy word: Recession.

It is the safest and the easiest way to explain the lack of marketing strategy, mismanagement or merely a lack of an aggressive killer instinct to be competitive and grow. The only recession I have experienced is that of my hair. A lot of company results have come out and in the same industry, some companies have grown in sales and profits and others have actually declined on both fronts.

I do not believe that there is a general recession or a slowdown. It is an absolutely new market situation wherein the market of shortages, rationing and bad customer service or products has given way to a vibrant market of choice, world-class Indian customers and aggressive sales and marketing people who want to win. It is important to understand that blaming the market is many a time similar to a bad workman blaming his tools.

While there have been some ups and downs in certain industries, it also takes place all the time, all across the world. However, companies with a clear, well-defined marketing strategy, brand positioning and aggressive sales plan would win and grow. There are companies that have grown in profits over 100 per cent.

There are companies that have grown in sales by 30 - 50 per cent. These are winners. These companies have responded to the market and instead of gloomily looking and blaming the weather or market conditions, have tried to evolve marketing and business opportunities by satisfying needs or creating needs amongst customers.

It would be inappropriate to think that there is generally a slowdown, because that is not true. In every industry, there are certain brands and companies that have been able to increase their market share and have a well-tuned sales and marketing approach in this vast land of opportunities.

The difference is in attitude. While certain companies have closed their minds to the market opportunities, others have opened up new areas of business opportunities because of an open mind. It is important to note that in times of crisis, brands with a long-term marketing approach are able to grow better than others which do not have a proper, practical marketing plan in place.

Gone are the days when customers would approach you. Today, you have to proactively approach customers and be able to sell value, not price.

In most companies, it is important for them to realise that there must be an internal marketing programme which is able to change attitude and mindset towards proactively grabbing market opportunities rather than wait gloomily for market conditions to change. In the best of times, there are some players who perform badly. In the worst of times, there are some players who perform magnificently.

The difference is due to a mindset and a well-defined marketing strategy. Most companies need to refocus, start doing internal marketing first, get their act together and then embark on external marketing. In our opinion, the right approach would be to keep an open mind, look at market opportunities and go out and get them rather than wait for the so-called recession to get over and wait for customers to come to you.

The essence of successful marketing is to make a customer and to keep the customer. Companies which are not doing well may not have a marketing strategy in place to do either, and therefore, end up blaming the recession for their woes. After all, whether it is a recession or boom time, it is a way of looking at things and a state of mind.

(The author heads Samsika Marketing Consultancy Pvt. Ltd. Feedback can be e-mailed to bleditor@thehindu.co.in.)