Will M&M’s Foray into Mobikes be Successful?

Back in August 2008 when Anand Mahindra, MD, Mahindra & Mahindra got his hands on Kinetic Motors’ assets to pave way for the Group’s entry into the two-wheeler segment, critics cautioned that the buy may prove to be a costly affair as M&M had no expertise in the two-wheeler industry. However, Mahindra stood his ground on the decision and proved everyone wrong by selling one lakh units in just 10 months from the day he launched the first model.

Cut to September 2010, M&M is again the talk of the town with the launch of Mojo (a 300cc motorcycle) and Stallio (a 110cc motorcycle), which mark its foray into the motorcycle segment. Without a miss critics are back in job too questioning whether Mahindra will be able to replicate the same success that it achieved with scooters. However, a visibly confident Anand Mahindra says, “We are geared up to redefine the biking experience in India with the Stallio and the Mojo, which are a potent blend of global technology and innovation.”

But then, with players like Hero Honda, Bajaj Auto and TVS Motors already bubbling in the industry with their huge portfolios, one cannot deny the fact that it will not be a cake walk for Mahindra this time. Going by the experts’ views, a lot will depend on how M&M positions its bikes in front of the already established players. On that note, while the recently launched Stallio is an out and out competitor to Hero Honda’s Splendor (India’s largest selling motorcycle), Mojo is the first 300cc bike in the country, which aims at establishing brand Mahindra in the segment by carving a niche for itself. Explains Devendra Shinde, Vice President – Marketing, Mahindra 2 Wheelers, “Stallio will be a volume puller for us, while Mojo, which is a sports cruiser, will establish Mahindra as a brand in the motorcycle segment.” Adds Anoop Mathur, President, 2 Wheeler Sector and Member of the Group Executive Board, M&M, “These world class bikes are worthy additions to the Mahindra’s product portfolio and are part of our commitment to establish an end-to-end two wheeler business in every segment of the industry.”

The company seems to be very particular about how the bikes are to be positioned. So, even before the bikes were launched, the company released a teaser campaign, depicting itself as a technologically ahead bike-maker. And if Shinde’s words are to be believed, then consumers will get to see a lot of it in the upcoming communications.

Be it IT, SUVs, tractors or any other segment that M&M operates in, it has been the company’s modus operandi to be in the top league. Having said that, attaining such a stature in this particular segment will be a tough task. Shinde confesses, “As far as volumes are concerned, we would not be in the top three. But our active marketing strategy has already ensured that Mahindra two wheelers are on the top of the mind recall of the bikers.” The company is fighting hard to create that recall as it has already signed Aamir Khan as its brand ambassador for Stallio – a move, which, as per experts like Jagdeep Kapoor, CMD, Samsika Marketing Consultants, is followed by automobile companies only when they desire to achieve high awareness in a short time span.

In order to have a competitive edge against others, M&M is also focusing on offering features in existing products rather than segmenting them on the basis of the engine power. But then, Bajaj Auto has been following the same strategy of differentiation and technology for the past couple of years. Where is M&M different?

M&M believes strongly in its aggressive marketing plans as Shinde says, “We had utilised digital marketing in the pre-launch campaign to generate strong awareness”, and expects to tread along the same path in future. But, the perception building activities will remain imperative for Mahindra as consumers still associate to it as a company that makes tough, rugged SUVs, which is totally different from the desired recognition of a technologically advanced manufacturer.

Abhimanyu Ghosh - CEO

I am compelled to get back to the days when we as a team sat down and discussed this project which is very close to all our hearts. Powerbrands came into existence, because of our very strong belief that India deserves a book on brands, which deserve their stories to be read. Brands fight it out, a war as potent as anything possible today and in a market, which is the most idiosyncratic in the world. Powerbrands is a salutation to the brands that mesmerise the Indian con-sumers with their brilliant brand strategies.

However for us as a team the biggest problem was to choose the most powerful brands in India. It was difficult, it was confusing and it was troublesome because there are just too many brands, which are doing outstanding and we had to choose only a few. So as the content team and ICMR team kept discussing, various new possibilities came out and so did many combinations. We tried our level best to ensure that the research that comes out has to be authentic and full-proof. ICMR team led by Shivalee Kaushik did a fantastic job of coming to me with a grid of choosing brands through a nation-wide research that looked totally convincing and very scientific. It took both qualitative and quantitative aspects, which delved deep into most important factors of a brand driven by perceptions. After researching 50 industries and various sub-industries, they gave us a list that looked pristine. However most exciting part of the ICMR survey was the path-breaking POWER-FACTOR research grid that was developed and executed for every brand selected to be a POWERBRANDS 2010-2011.

For all the selected brands ICMR went directly to the target market and analysed the trust, recall and emotional levels of the brand. We have incorporated the essence of POWER-FACTOR research as a part of the content. POWERBRANDS 2010-2011 is a pristine thought process, super research and genuinely made consumer recognized process. While we were on a path of creating a credible research report in the shape of a coffee table book format, we kept getting constant demands from various brands that they wanted to be featured in an innovative format inside the book. I am glad to say that Powerbrands is not just a result of quality research but the design execution in the Mega edition book is a first of its kind attempt made globally and is a visual treat. I want to thank Yogesh Gajwani for some remarkable designs and Devdeep Singh who worked on the content grid of the book. Powerbrands is a compilation of India’s most powerful brands and hence the book also needed to be a powerful property. We tried everything possible in this project which makes the total proposition of Powerbrands, the most well done project on brands for the first time in India. According to our initial plans, Powerbrands was only a research report with a very well written coffee table format. But as we progressed with our work and the project kept getting stronger, we did some change in our planning.

For the entire team of Powerbrands, it was always the most important thing to deliver to the Indian readers a book that really showcased brands, which stand for-”excellence”. A coffee table would be restricted to few, so as a part of the plan to reach out to every brand enthusiast in India, POWER-BRANDS 2010-2011 is coming out in two different versions. A coffee table Mega edition and a corporate edition at a much lesser cost. In the making of Powerbrands, I would like to thank the Chairman, CEO and company spokesperson of every brand whom I or my team met as a process to understand the soul of these brands. Powerbrands is an eclectic blend of super-lative content, design and production making it the most unique book on brands ever published. I want to thank Tara, Sumer, Vikram and Yasir for writing some wonder-fully drafted content and specially mention the contributions of Sakshi, Manvi, Sushmeet, Sarmad, Muneeb, Anisha, Preity, Preeti and Sunita for their tireless efforts of coordinating with each brand for the re-search, content and all other information on specific brands. Kanchan Chatterjee & Shahnawaz Ahmed for their designs and Sivam Ojha for managing the website.

Their contributions have been invaluable in the making of this project. Amim Ahmed has been my biggest support system. He went out of his way in helping to make this project a grand success with his great networking and marketing skills. The Mega edition has been printed by Pragati Printers who with their state of the art printing technology were able to give shape. Powerbrands has truly been a combined effort of a big human spirit called passion and team work. And that’s why we have the highest belief in it and we are sure everyone else will.I would like to thank Prof. Arindam Chaudhuri from the deepest point in my heart for being a support system for everyone working with the Planman and IIPM group. He encourages, motivates and gives freedom to give a shape to ones dream. Also big thanks to the Planman Media editorial, photo and production teams for the support that they gave in the making of Powerbrands. We put in our most sincere effort in making this book authentic in its research, world class in its looks and innovative with its design in the Mega edition and content that should justify all of it. I hope you love reading it as much we loved making it.

THE SANCTITY OF PADMA AWARDS ARE AT QUESTION, AND WITH THAT THE DESTINY OF OUR PRESENT AND FUTURE GENIUSES!!

Resul Pookutty was an obscure name and would have remained like that, had he not won the Oscar. In his own country, he would have always remained a dispensable and not so important sound technician, had the Oscar jury not decided to give him the coveted award. When the Oscar jury had shown to the world what Resul Pookutty was and what talent he had, his country’s government suddenly realized that it was time to give him something. And thus, he was given the Padma Shri award – thanks to the Oscar of course! One is forced to think then how many such Resul Pookuttys might be there in this country, people who are never recognized.

Since Independence, the Padma awards have been one of the most coveted set of awards of this country, and for not just the award in itself, but for the prestige and honour that it carries. It is meant for the best and is meant to encourage others to strive for excellence. Yet, in spite of all these, and in spite of the supreme importance attached to it, one is left to wonder how the decisions about conferring these awards are taken. One is also forced to wonder who all decide the awards and how much can personal interest or influence decide the matters vis a vis institutional procedures. The Oscars – awarded by the Academy of Motion Picture Arts and Sciences – are considered to be one of the best in the world for not just the fact that the awards are given only to the best of the best and that too in the US, but also the fact that the whole process of selecting the films and scrutinizing nominations by a large jury of eminent individuals, reflects the level of scrupulous transparency. Thus, it becomes very difficult for anyone to influence the ultimate result. Needless to say, the Oscars have their own process in place wherein the government of US has no role to play. And the same is true for all globally recognized awards. The question is, for the Padma awards, do we have a jury of eminent people who decide the winners’ names based on certain transparent and structured processes? On the contrary, it has been revealed most shockingly through an RTI (Right to Information Act) application that it is the Cabinet Secretary, Home Secretary, Principal Secretary of Prime Minister and the President’s Secretary, along with four non-official members, who decide on the names (of the winners) and then send the same to the Prime Minister and the President for final approval. The ‘exclusive’ credentials these secretaries ostensibly have to decide about who all deserve to be given the highest national award of the country, remain questionable in themselves! And what guarantees that there is no scope for lobbying and favouritism in awarding the awards? To top it all, there exist no set parameters for these awards, which makes it even simpler for the above team to act on their whims and fancies. Isn’t the whole Padma award process getting transformed into the way the bureaucracy runs this nation? Today, no one bothers about who becomes the minister and who votes for whom in the Parliament – as it has become rather an open and perhaps an acceptable secret that everything can be bought with the right infl uences in place. So, are we witnessing a scenario wherein the Padma awards too are going in that direction? How does one justify then that in response to an RTI application fi led in 2009 by Subhash Agarwal, it has been revealed that Olympic medalists Vijender Singh and Sushil Kumar’s names were not included in the final 2009 awardees list by the Padma Awards Committee, even when their names had been forwarded to the Committee by the Sports Ministry within the due date.

When someone like Aamir Khan or A. R Rehman receives a Padma award, one can only feel happy for and proud of them because of the incredible contribution they have made in performing arts. But to believe that some US-based Sant Chatwal would be getting this award even when there are allegations of his being involved in some financial scam and being charge-sheeted for the same by CBI on four accounts (he reportedly has a $9 million default with SBI and some other public sector banks), raises the questions in terms of the veracity of these awards. And now, one is again forced to wonder how could someone like him receive the nation’s most coveted award? Let’s get it straight – Sant Chatwal is no Lakshmi Niwas Mittal, and neither has he conjured up any major contribution to society, barring some failed efforts to promote his son Vikram Chatwal in Bollywood. So, is it for all of these that he is being awarded and put on the same league as the brilliant Venkatraman Ramakrishnan, an Indian American and a Padma awardee who won the most recent Nobel Prize for Chemistry?

One has to accept that there are very few institutions on which the common man of India today has trust and faith. The Padma awards are precisely one of them. If this too gets mired in red tape, nepotism and bureaucracy, then that would probably be the worst conspiracy against our existing and future geniuses!

TRANSFORM THE CURRENT STRUCTURE OF SPORTS GOVERNING BODIES INTO RESULT-ORIENTED CORPORATE ENTITIES!

The year when India is going to host both the Commonwealth Games as well as the World Cup Hockey championships couldn’t have started in a more unfortunate way. The first is of course the fracas revolving around the strike of the Indian hockey players and their refusal to play till the time their arrears were paid. While the governing body known as Hockey India was quick to literally term the players unpatriotic and accuse them of putting money before the essence of playing for India, what was appalling was not only the fact that the arrears (running into lakhs) of the said hockey players had not been paid for a long duration, but also that Hockey India actually offered a pittance of Rs 25,000 for each player in lieu of the arrears. And this too was offered to them only with the condition that either the striking players accepted it or left the conditioning camp within 48 hours. Needless to say, the authorities were perhaps thinking that it would be easy for them to lure junior players to replace the existing team. But then as it turned out, the juniors refused to budge and sided with their seniors. The striking hockey players have been consistently telling that this agitation is not for any self-serving mission, but to fix the rot in the system. And finally, when it caught the fancy of the common man and the media, and there were cries to set things right, money did start pouring in and things were settled down for the time being after the intervention of the Indian Olympic Association (IOA) Chairman, Suresh Kalmadi. But this clearly is more like a band-aid strip. The rot still remains!

The second incident is with respect to the way the National Rifle Association of India (NRAI) behaved with Abhinav Bindra. NRAI suddenly remembered that discipline is a virtue and disqualified Abhinav Bindra from participating in next month’s Commonwealth Shooting Championship. Well, Abhinav needs no introduction. But for those who manage NRAI, perhaps being India’s lone gold medalist in the Beijing Olympics was not a sufficient condition to give Abhinav a readymade berth. This time too things got sorted out later after the intervention of the IOA. As in the case above, the rot still remains.

It goes without saying that Indian hockey players are paid chicken feed when compared to their cricketing counterparts. And the most shameless thing is that even when this team wins the Asia Cup (2007), Azlan Shah Cup (2009) or bags the bronze medal at a Champions Challenge tournament in 2009, they are still not paid their promised piecemeal few lakhs in time. Well, patriotism is not something that can happen on empty stomachs. The crux of all the problems lies in the way each of the sports associations have become a personal fiefdom of politicians and also a place to settle their remaining political scores. For example, for a long time, Indian hockey was the personal fiefdom of former Punjab police DGP KPS Gill. It was in 2008 that the Indian Hockey Federation was dismantled following a series of bribery scandals and it was replaced by Hockey India, which has proved to be equally inept. The same is the case of IOA, which has almost become a personal fiefdom of Suresh Kalmadi, even when India’s performance in international sports has only been sliding and has almost reached the nadir. Had it been a private entity, no such non-performing CEO would have been kept at the helm for such a long time without any substantial result to show. Just like a soldier cannot fight without the right kind of support system in terms of logistics, food, ammunitions, weapons, clothing and information about enemy positions, no team of any sporting order can perform effectively unless the governing bodies are accountable for what they deliver to the players, as well as to that game. Cricket is an interesting case in point. BCCI is one of the richest sports bodies of the world, yet has created a clear demarcation between election bodies and the efficient administration of the game. It has been extremely successful in marketing the game – and thereby bringing in billions of revenues - and also in nurturing and nourishing new talents. And the results have been there to see. Not only has BCCI nurtured and worked towards improving the Indian cricket team’s performance in this century, but BCCI also has been successful in launching the IPL and making it a resounding success and an interesting example of what a sporting body can do to a game. IPL has opened up a vista of opportunity for hundreds of players, who would probably not even make it to the final eleven of their national teams, yet have enough talent to enthrall the audience. The same is the case with what FIFA has done to football.

The only thing that can save India’s sports now is when we learn from China about how a nation can win hundreds of medals - mostly gold - while we remain content with just one gold and a few bronze medals. The need of the hour is perhaps to completely shun all the politicians and non-professionals from all the governing bodies of each sport and convert these bodies into corporate entities, which are accountable to the government. BCCI actually can play a crucial role in nurturing the sporting bodies. Let professionals run the organizations. Let retired players be the selectors and let everyone and not just the players be accountable. What was shocking to see was that the government didn’t react much to either of the incidents mentioned above. There was no furor among the political parties. Couldn’t the government have stepped forward with a few crore rupees to save India’s hockey? Couldn’t someone have taken action against those who insulted Abhinav Bindra? Unfortunately, this apathy from the top is the crux of all the malaise.

HATS OFF TO BIHAR, BUT IT HAS A LONG ROAD AHEAD!

In the first week of January 2010, most newspapers carried a stunning report. And the report was based on data from the Central Statistical Organisation, which revealed that Bihar has clocked the second highest growth rate in the country, only second to Gujarat, between the period 2004/05 and 2008/09. Although in the same period, most of the backward states have shown a reasonably decent growth rate, but none could match up to Bihar. And what is even more remarkable is the manner in which the state has turned around. It was only in 2003/04 that it had shown a (de)growth of a negative 5.15%. Five years hence, the state has an aggregated growth of 11.03%, beating all conventions.

Initially, analysts were skeptical about the data, but once it was reported that the data had been released by CSO – a central government agency – all doubts were put to rest. What is more interesting is the fact that most of the growth has taken under Nitish Kumar’s regime – which also proves that howsoever poor a state might be, finally it all depends on an able leader whether a transformation can occur. And all credit should go to Nitish Kumar for his intent and a proper follow-through with governance. It is not just Bihar – the same can be said with respect to Uttarakhand, Orissa, Jharkhand and Chattisgarh, as these states have clocked growth rates of 9.31%, 8.74%, 8.45% and 7.35% respectively for the same period, beating the conventional growth rates that had been seen over the years. What is even more intriguing and creditworthy is that of these states, four states – namely Bihar, Uttarakhand, Orissa and Jharkhand – have beaten the national growth rate of 8.45% during the same period!

But then, without taking away any credit from these states, there are a few issues that should also be taken into perspective for a more balanced evaluation. Though on the face of it, Bihar has stood second nationally, and next to Gujarat, but the fact is that the state has a long way to go to even get close to Gujarat in real terms. As we all know, growth rates are always relative. And in absolute terms, the growth of these states is nowhere close to that of Gujarat or a Maharashtra. States like Bihar, Jharkhand were growing on a very low base of historically languishing state GDP, whereas states like Gujarat and Maharashtra are already on a much larger base. Therefore, if states like Bihar, Orissa et al have to catch up and earn any kind of parity with other progressive states, then they have to grow even faster than the latter. Other than this, a high growth rate also does not guarantee that the growth is uniform – encompassing all sections across the state. A case in point has been Madhu Koda’s government. We all know the level of corruption that states like Jharkhand have been subjected to in the past few years. Indications now also are very clear that the so called growth rates have actually not touched upon the masses in these states – and this is not good news at all. As this means that the income disparity has grown not only at the national level, but to a large extent at the states’ level too. Along with all this, we also know that these newly praised states are also the states which are subjected to the maximum number of Naxal atrocities, which is also an indicator that though apparently the states have scored well on growth, the masses still remain disconnected. I’ve written about this a number of times earlier and would like to reiterate here that Naxalism has a deep connect with poverty. Over the years, Naxalites have prospered only in those states where poverty has been deep-rooted; and that’s why we don’t hear about the Naxal menace in Gujarat, even though we hear about the same in Maharashtra (because there are poor pockets in Maharashtra where Naxals thrive).

But then, as I said earlier, the credit can’t be taken away from these states. The better news is that if they have reached this far, the day is not far when they would even tread the extra mile to ensure growth to masses as well. Their biggest achievement is that they have been able to come out of the ‘BIMARU’ tag, with which they had been living for decades. But to finally be counted amongst the truly leading states of India, these states would have to ensure that growth looks meaningful and inclusive. For now, it’s at least visible!