No Money Marketing, From the Horse's Mouth

I have been always been in awe of Nikhila Kesavan. In addition to being one of the most talented theater personalities in Chennai and probably in India, she is also a successful PR professional and an ex-colleague. Nikhila is a perfectionist. Despite the fact that she was my junior, I would get jitters every time she reviewed a document that I created. She would rip it apart, highlight how pathetic my grammar was and how poor my sentence formations were. The other person who scares me equally is my wife. I am beginning to firmly believe that grammar is a girl-thing!

Back then, Nikhila and I were servicing Lason India, a leading BPO player in Chennai/India. They had a network of business associates, an innovative operations model. We were briefed that the business associate model had been taken to the next level and that Lason had set up what was probably the first BPO center in a village! Rural BPO! Though I initially suggested that we do a small press brief in Chennai, I changed it to a press junket to the obscure village in Thiruvallur District, at the last minute.

Being the person she was, Nikhila swelled with anger. She had already started working on the press meet in Chennai and now she had to start from scratch to organize the logistics for a larger event. But more importantly she was upset that we were not sticking to the initial plan. She demanded to know why the plan was being changed. And I didn't have an answer. It was a gut feel.

Thankfully, the event was a big success.

I couldn't articulate why I changed the plan. It was certainly based on the experience and understanding of what would or wouldn't work. 

Now that leads us to No Money Marketing by Jessie Paul. A veteran marketing professional who has worked with the leading software services companies in India (Infosys and Wipro) and played an important role in building the brand that they are today, she has no such articulation issues.

Also, I realize that there are two kinds of writers/authors. One who are academicians who research and look at the big picture. They give guidance with their theories and support it with observations. And then, there are those like Jessie who are doer-authors. No Money Marketing is like a ready reckoner. Read it, roll up your sleeves and get to work. The book is unpretentious and doesn't test your patience by giving models that are great to read but difficult to utilize. But it does have models that can be easily digested and provides a great framework to develop marketing campaigns. There are nuggets of wisdom which provide excellent cue to marketers who always work on a diet-budget.

This book is a must read for marketing professionals in the technology industry, especially those in the software services space. The challenge for players in this space is that most of them are Me-Too. Last time I checked the Nasscom member's list in 2007, there were more than 1000 software services company. The glory story is limited to the top 50 or 100. For the rest in that list, it is a tall order.

I liked two lessons, in particular:

1. As I said, Jessie is a doer-author. This book is full of practical inputs for a marketer who wants quick solutions. But what is more important is that before she presents the ideas, she sets the context. First few chapters are dedicated completely for self assessment. While the tools and ideas are common, Jessie urges every company to self introspect and develop a strong unique story. She in fact provides many examples and thoughts on how it could be done.  
2. The avenues for brand building. The chapter on Core Branding versus Surround Branding is very important. For many software services company India is not a market but they certainly do lot of brand building activities, here. While it may not directly bring in business but it does help in recruiting and retaining the talent. And of course, in a flat world, a term you will find Jessie has used just too often in the book, there is always a spillover.

As a professional who has practiced a few of the ideas and other times observed being practiced, I think this book is the ultimate guide for marketers in software services industry. A book that CEO of every software services company, especially the small and medium sized who do not have a differentiated offering and work on frugal budgets, must read. And if you need more help, there is always Paul Writer.

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.

Chennai, What Is Your Identity?

So there was this Reliance Communications ad on the occasion of the company acquiring 100 mn customers. It was a Mario Miranda style cartoon of a crowded India with representation of various cities.

There was Qutub Minar, Gateway of India, Charminar...I looked for a sign of Chennai. And to my disappointment, there wasn't any sign of the city.

From a time when Chennai/Tamil Nadu represented the South, it is fast fading into oblivion. Bangalore is considered more cosmopolitan, and for housing IT companies, Hyderabad is also known for IT industry despite the fact that it lags behind Chennai and, of course, Kerala is "God's Own Country". In fact, I think Kerala has become the face of the South. At least the ad agency of SBI thinks so.

In terms of economy and culture, Tamil Nadu is far ahead than any other Southern state. But that it is the Detroit of India with Ford, Hyundai, BMW, Nissan, Mitsubishi, Ashok Leyland, Hindustan Motors, TVS, Caterpillar and many auto ancillary units are here doesn't seem to help. That Nokia, Samsung, Motorola and Foxconn are here doesn't count. That its Chola dynasty was a large empire dating much before the times of Mughal dynasty is forgotten. That some of the temples and architectures date back to BC is erased from the memory. Well, that is another story.

But then I pondered. If there was a face to Chennai, what was it? Every city has an identity. Paris - Eifel Tower, London - Big Ben/London Eye, Jaipur - Hawa Mahal, Kolkata - Howrah Bridge, Cochin-Jew Town...

Chennai?

Marina Beach? India has a large coastline. There won't be any differentiation. And let's admit, despite being the second largest beach in the world, Marine Drive in Mumbai has a better recall than Marina in Chennai.

Central Station? Maybe, but it is just a station. Rippon Building? Maybe, but I doubt if anybody outside Chennai knows about it.

St Thomas Mount or Santhome Church. There are so many churches in India, as old!

Factories - Ford, Hyundai, Nokia, Motorola...Nah!

Probably the answer lies in culture, history and religion. Hindu Temples? Which one? Kapaleeswarar, Parthasarathy? Probably. But do people outside Chennai know about them. Tanjore Big Temple! But that is about 300 km south. Mahabalipuram is also not exactly in Chennai.

Napier Bridge? But though it is distinct, it's a small structure.

Wish we could have done something while designing the new assembly complex. It is more contemporary and I don't think it is a structure that will get etched in the memory of Tamilians, themselves.

Now, I am confused more than ever. Or should I be happy that there are so many facets to this city?

PS: Did You Know (courtesy Deepak Chopra): What is the ABC of Chennai? Adyar, Buckingham and Cooum, the three rivers/canals in Chennai.

South Indian Meal

As I wrote in my blog on talent, I eat a lot. And I love the meal or saapadu as it is called in Tamil.

I must say, amongst all the restaurants in Chennai that I have eaten, Tanjore is easily the best for saapadu. Like McDonalds’ QSCV, I can say Tanjore must be following the QQP dictate - Quality, Quantity and Price.

The place is absolute value for money. Costing about Rs. 60, you have to buy a token at the counter before you go the first floor at New Woodlands, Cathedral Road. Do not expect luxury though seating is comfortable. The bucket or balti service reminded me of a Tamilian wedding. The tables are straight and long; not like the rectangle four or six seater tables usually found in restaurants. Food is served on plantain leaf.

The food tastes like home cooked. It is tasty, sumptuous and non-greasy. It is more in TamBrahm (stands for Tamil-Brahmin, for those who didn’t know) style.

None, whether it's New Woodlands' other restaurant like Vrindavan or Sangeetha or Saravana Bhavan or any other, came close to it.

As I had mentioned in my blog on restaurants in Chennai, the others cannot be called authentic South Indian Meal. First thing that puts me off is Rotis or Chapattis. Wheat is not the staple Tamil Nadu; it is Rice, Rice and Rice. But, I guess the fascination of South Indians to eat wheat has led to the inclusion of Indian breads. Two, I love the fact that it is bucket or balti service. This means that the food is served hot. Other places give you accompaniments and gravies in cups or kinnams (in Tamil and katories in Hindi). First, all kinnam items go cold by the time they arrive at your table and, second, they are just not sufficient. So, you have to think twice before asking for more because consistent reordering for kinnams might lead to people think that you are a glutton. Further, if the restaurant is crowded, by the time kinnams come, your fingers would have dried up and so would your appetite.

For those who are aware, typical vegetarian Tamilian saapadu (pretty much the same for other South Indian states, I think) comprises of Rice (the staple), Paruppu (lentils or dhal), Sambhar (dhal and tamarind gravy), Kara or Vattal Kuzhambu (hot and spicy), Rasam (a thin soup made with Tamarind as base), Kootu/Poriyal (veggies) and Curd. Appalam (Pappad) and pickle are also part of the meal.

For desserts, a plantain. For digestion, a beeda (beetle leaf and beetle nuts).

So if you are in Chennai and are looking for a place for a typical and authentic saapadu, head to Tanjore.

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!

Ads of Telecom Service Providers

It all started with the launch of MTS in Chennai. I was quite keen to understand if the Telecom Service Providers (TSPs) do differentiate themselves and try to position themselves.

So, once again, I started a discussion with my colleagues. We discussed ads of various TSPs.

Airtel ads:

We started with the leader – Airtel. Airtel has used celebrities and continues to do so. The latest ones are Madhavan-Vidya Balan couple ads. The other ad that captures ones attention is the Lil Kid ad where a boy is reprimanded by mother. For some time now, SRK and Sachin do not seem to be given spots. Other ads which remembered were two kids playing on two sides of a fenced border. AR Rahman setting the Airtel tune was a long running campaign at one point of time.



The models used otherwise resemble people from day-today life. There is a play on emotions and ads are derived from the happenings in life. Suresh Talpade, Madhavan-Vidya Balan and the Lil-kid ads really touch emotions.

Vodafone-Hutch ads:

Before I summarize the ads, please read Sonia’s blog on Zoozoos, the latest brand ambassadors for Vodafone. Zoozoos are the talk of the town.



Whether Hutch or now Vodafone, the ads have always been very creative. Use of the Pug really established the brand. While there is an emotional play, it is more fun to watch the ads. Whether it was the ‘network follows you’ or the ‘always there to help’, the pug always captivated you. I am sure the ads did well for the brand and for Pug as a pet. The demand for pug rose so did the rates.




On the other hand, the Irfan Khan ads were smart.

Vodafone (earlier Hutch) ads were always fun to watch. Emotions were less. Models and more importantly the locations always are sophisticated.

Idea ads:



Idea ads were more idea ads.

Abhishek Bachchan, who is the brand ambassador, uses phone as a medium to solve issues facing the society. “What an idea, Sir Ji” ads are really smart creative. There is not much of personal touch. There was just one Shreya ad and does not look like it had many reruns. I liked the use of cell phone for distance education. It was touching!

BSNL ads:



For a public sector company, BSNL does seem to have pretty ads running. It was surprising when Preity Zinta became the brand ambassador. More so now, as Deepika Padukone promotes the brand. The VAS ads of BSNL are also pretty decent.

There is no emotion; BSNL ads are very functional.

Aircel ads:

After changing so many hands, Aircel at last seems to be a brand that is trying to make itself a serious national player. Dhoni is the brand ambassador. Like Pepsi, Aircel draws heavily on cricket. Dhoni demonstrates what one can do with an Aircel connection – browse, make payments, follow cricket, search…



Nothing more from them yet.

We somehow could not recollect Reliance ads. The one that we did was a young couple traveling to Badrinath and the girl using the phone to let her granny listen to the bells at the temple.

We could recollect Kajol featuring on Tata ads. Of course, now they have the Hello-Hello series running. Quite funny they are.

And of course, the Virgin ads. The ads are very focused and the company seems to know whom they are going after which is the college going

Now the most important part, will I ever change my service provider based on the ads. There is hardly any differentiation in service. I hold Airtel connection. There is constant complaint about the Hutch service but I must say Airtel is as bad. Interestingly, there is an Airtel tower above our office even then there are call drops!

Services and rates are hardly a differentiator.

I wonder what role these ads play. If not to woo at least to retain, I guess. Except for Virgin and MTS, I haven’t seen anyone else who seem to have take value-for-money positioning. But someone like me may never go for Virgin or MTS.

But I maybe wrong on wooing part, at least partially. The number of subscriber base in India is about 300+ million is about 30% of the population. It means that the mobile market has not even crossed the early majority. Indian mobile market is set to grow further. Even if there is a potential market to add another 400 million, it is a huge market which is the rest of early majority and the entire late majority at stake.

I am not sure about services but we are going to see more and more creativity flowing out of TSP war.

Not sure how Number Portability will affect the ads. That is because at least today with the number you possess one can identify your service provider. But with number portability that identity is lost.

Hope in this loss, customers gain!

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

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