Showing posts with label Chaitanya Naik. Show all posts
Showing posts with label Chaitanya Naik. Show all posts

Wednesday, January 12, 2011

DTH Brands: Failing to deliver Expected Value?


DTH industry, at present, is undoubtedly experiencing a growth phase in India. We see many people switching to DTH service from the cable television. A recent study reported that the number of DTH subscribers in India, touched 27 million. DTH brands have tasted success in rural areas too especially in areas where there are no cable operators.

The pricing strategy of DTH brands has changed over the years. During the initial years of DTH in India, the Set Top Boxes attracted a price of about Rs.2000 approx. but came with free channel subscriptions for 6months or a year. This method of pricing was quite successful in attracting non-users to DTH service. However, now every DTH brand has reduced the price of set top boxes by about 50% but the channel subscription comes for a price.

However a large chunk of market is yet to be tapped considering that there are 150 million television sets in India. So all the DTH brands are going for it by rolling out various customer centric services and benefits.

DishTV is communicating about its emphasis on after sales services in its campaign. Its "Call Me" feature where a customer care executive calls the subscriber upon receiving a message, shows the brand's emphasis on customer service.

Airtel launched "lifetime free language pack" which offers free channels of one regional language when one subscribes for base pack. This can be a huge hit in the South where the regional channels rule the television.

Tata Sky since its entry into DTH has concentrated on providing innovative customer centric features. Its “Once a year Subscription Holiday”, allows a subscriber to temporarily disconnect Tata Sky services for a period of 5-15 days once a year. Its “TruChoice” package is a customer friendly initiative that gives its customers the option to view channels according to their taste, budget, and language or genre preferences. However the complexity that involves in choosing channels will benefit only the tech savvy customers.

All the DTH brands are betting on High Definition Channels too.

But there are bigger questions to be answered. To what extent these customer centric services can be successful in motivating a cable user to switch to DTH service? Are these services inline with the expected value from the DTH services?

The monthly channel subscription charges of DTH ranges between Rs250-Rs450, which is substantially higher than what the traditional dish operators charge. This, at times can act as a barrier for switching to DTH services. From the perspective of mass market, affordable prices are perceived as value offering. Hence, rather than concentrating on unique services, DTH brands should provide lower price points to attract non users to DTH services.

The communication efforts of DTH brands fail to communicate a strong reason to shift to DTH connection. A DishTv campaign "Don’t be Santusht, Dish karo, Wish Karo" had done the trick of attracting people to shift to DTH, when DTH was launched in India. Similar attempts are required as the DTH industry is not groomed completely and it becomes necessary for the brands to reinforce the benefits through a proper communication strategy.

So if the priority is to attract non users and target the mass market, DTH brands have to work out a proper pricing and communication strategy,well of course packaging it with customer centric services.

Tuesday, September 14, 2010

Visual Merchandising In Kirana Store


Before you move on with the post, just find out as to which category of reader you belong to.
Category A: Readers belonging to this category do not know what visual merchandising is.
Category B: Readers belonging to this category feel that, Visual Merchandising is restricted to only in large retail stores and it can’t be attempted in a Kirana store.
Category C: Readers belonging to this category feel that Visual Merchandising is quite possible in a Kirana store.

If you belong to Category A or Category B, move on with the article. If you belong to Category C, spend a minute to recall visual merchandising at your neighboring Kirana store and then move on with the article.


“Visual merchandising” is an activity of arranging products, so as to convert a passive buyer into an active buyer through the use of visual medium. It is an activity of promoting a sale of product by displaying it in such a way that it stimulates and encourages buying in retail store. The aim of visual merchandising is also to induce impulse buying.

The concept of Visual Merchandising emerged in the large retail outlets and the shopping malls. There were mainly two reasons for the same, firstly, to increase the amount of purchases and secondly to convert a window shopper into a buyer. Today this concept of visual merchandising has become an integral part of retailing. The store design, store layout is planned in such a way that, it is inline with the products and also creates a buying environment for the potential customers. The combination of lights, colors also contribute to visual merchandising. Today, the stores have visual merchandising executives who will plan the display of products. However, Visual Merchandising though seems to be a creative process, in reality, it involves deep understanding of “The Customer”.


Many have a misconception that Visual Merchandising is possible only in large retail stores. However a closer look at the definition itself says that visual merchandising can be done in a Kirana store too. In a Kirana store, it is not possible to create an integrated environment for visual merchandising. However, effective display of products will make for it. Here I have analyzed how the visual merchandising has been evolved in a kirana store over the years.

First phase was during the 1970s and 80s.This was the period in which products were not identified by brand names. During this period, products in a kirana store were mainly arranged for shopkeeper convenience. The products were just kept such that shopkeeper could easily serve the customers. Only few items like peppermints etc were placed in front at the counter so as to lure kids.


During the second phase, with the increase in number of brands in a product category, the shops started getting shelves across the three sides of store. The counters that were usually wooden earlier, got see through glasses. The brands were neatly displayed in the shelves. With time, the attractive containers of confectioneries replaced the dull glass confectionery containers at the counter. Also, shopkeepers would display the products, which he newly introduced in his store. Suppose say the he would not stock loaf of bread, once he started stocking them, he would place them at the counter, especially above the confectionary containers. This was a period in which the storeowners had realized the need for displaying products.


In the third phase, brands have played major role to facilitate visual merchandising. The brands are providing products in attractive containers, which facilitates proper display and grab the attention of customers as well. To mention a few, Vicks came up with white coloured ‘wall hanging display kit’, which the shop owners had to fix beside the cash counter. It had compartments for holding vicks vaporub bottles and inhalers. Similarly Maggi , started proving large nets to the shops which had hung in the store. The shopkeepers have to keep maggi in these nets. HUL came up with “Red Label hangers” which would hold the pouches of Red Label. The main intention was that their brand should stand out amongst others. Also, small warfare began for the space at counters, especially among confectionary brands. Wreigleys, strepsils containers would have a stand at the bottom. The motive here was that they should be visible at the eye level of the customers when placed at the small counter of kirana stores. Also the storeowners have understood the need of Visual Merchandising. Snacks like Lays, Kurkure have taken space beside the shampoo sachets to induce impulse buying.


However, now HUL has started hiring shelf spaces in the Kirana shops where the storeowner has to place only HUL products. Every month, it keeps changing the products, which should be kept in that space. It usually promotes Lux and Red Label using that space. Also the local sales executive is under the obligation that, every month he has to capture the images of the shelf arrangement and send it to the Branch offices. So clearly we can see a new trend here, so this is what forms the fourth phase. However, third phase prominently exists in most of the Kirana stores.


Now if we clearly look at third and fourth phase, it is mainly the category specialists who have taken the responsibility of Visual Merchandising. A question pops up into to my mind. Are these initiatives of category specialists, fair on the part of shopkeepers? Will these initiatives contribute to overall sales of the store?

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The readers of Category B, who still feel that visual merchandising is not possible in Kirana store, visit your neighboring kirana store and observe the attempts of visual merchandising.