GHOUISE MOHIUDDIN TALKS TO 4PS B&M ABOUT HIS DREAMS TO BECOME THE NEW BEVERAGE KING
 
When was the last time you came across a vending machine that proudly bore the logo of Nestle or even that of Georgia (from the house of Coca-Cola)? Perhaps, recently. But think about this – when was the last time you caught sight of a coffee vending machine whose trademark read Cafe Desire? Hard to recollect, isn’t it? But all that is set to change, with Cafe Desire (a brand of Radiant Consumer Appliances Pvt. Ltd.) determined to change the way vending machines treat consumers. It offers state-of-the-art vending machines and the products too – from tea and coffee to health beverages. And the brand has managed to run quite a distance over a decade. But that doesn’t satisfy Ghouise Mohiuddin, MD of Hyderabad-based Radiant Consumer Appliances Pvt. Ltd., who believes that much work remains to be completed, before Cafe Desire’s competitors really start feeling the heat.

How has the journey for Cafe Desire been so far?
It has been both an interesting and a challenging journey so far. We started with a simple idea that has developed over time. When I started offering hot beverage solutions, I had hoped that it becomes a success – all I needed to do was to empathise with our potential customers, address their wants and solve the problem with some simple offerings. Our business is straight and simple – it’s all about offering hot and cold beverage solutions (primarily tea and coffee) at the work place through our range of vending machines. We realised that there was a huge demand for uninterrupted supply of tea and coffee in many offices. Product quality and superior service is what the employees desired the most. And that was precisely the gap, which we went about filling. Honestly, we thought if we could solve this issue, we had a big market potential to address. We invested all our energies to become the most trusted vendor-company in the country. And looking back at the past few years, I can produly state this the rest is history. Our efforts worked wonders.

Cafe Desire is one of the fastest growing companies, with high customer retention levels, providing unmatched and proven services. But there is no denying that you had to convince the customers that your brand was far more reliable than the Nestles and the Coca-colas of the world in terms of hot and cold beverages. How big was this a challenge?
Honestly, the biggest challenge we faced was to break the mind-set of customers. We had to prove to them that we were superior to the big multinational brands like Nestle, Unilever, Coca-cola’s Georgia and others. Somehow, there was no room for any small new company, because all the corporates and even individuals obviously preferred to invest in some multinational brand. For this, what we did is that we tool trial contracts and proved ourselves first to our potential customers. Only then did we sign a final contract. Yes, it was indeed a risky and a tedious process, but what makes me most happy is that we became successful at the end of the day and started growing an extremely rapid pace.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


IIPM Proves Its Mettle Once Again....
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ARUN MAHAJAN, MD, STYLE SPA TALKS TO VAREEN RAY & AVNEESH SINGH ABOUT HIS COMPANY’S FUTURE PLANS TO ENTER THE LUXURY & PREMIUM SEGMENT WITH A DIFFERENT BRAND ALTOGETHER
 
This K. K. Birla Group company has already redefined the furniture business in India and is set to make new benchmarks in the near future. Arun Mahajan, the MD of the company reveals to 4Ps B&M that how in a matter of just a few years Style Spa has grown to become one of the largest furniture retailers in the country.

Today Style Spa is the largest furniture retail chain in India. What are the factors that can be attributed behind the success?
Post the end of the JV, we were not too sure whether we wanted to stay in the business in the long. term or not. But about a year ago we decided to make Style Spa into one of the core business of the group (KK Birla group). The factors that led to the success are after sales services, repeat customers, modular furniture, strong back-end operations and of course the quality without which any product will find it difficult to succeed in the market.

With the furniture market in India still largely unorganised and fragmented, what steps have you undertaken to educate customers?
There are a few initiatives that we have taken this year and the most important being our brand campaign, which will be launched this month. This will be our first brand campaign and that too on a pan India basis.

Could you elaborate on your expansion plans?
At present we have 97 stores and we are planning to add another 20 to 25 outlets and have a total of around 120 stores in the next one year. You will be surprised to know that out of these 97 outlets, we own 89 of them. During recession when most of the franchisees could not survive, we thought that it was better to have our own showrooms. We’ve confidence in our own model as this will serve us well in the long run.

What is the target audience you are catering to?
We can’t really say which segment because these segments change from city to city. Even if you see the middle class we can bifurcate middle class in three different parts like upper, middle and lower middle class. We’re still not catering to upper class. I would say that Style Spa is still positioned to the lower end of the upper class and the middle and upper end of the middle class. Then the class changes from city to city like middle class in Delhi would be equivalent to upper class in a tier 3 city. We have not yet got in to the premium class or the luxury class which is the upper end. So in that sense our positioning is very clear.

Do you plan to enter any other segment other than the ones you are currently present in?
Within a year we do plan to enter the luxury segment and the premium segment with a separate brand and we plan to open separate boutiques for that. What I mean by boutique is that we will have separate boutiques according to the product line. For instance, a separate boutique for sofas, a separate boutique for beds, et al. The feel, experience, people and the stores will be different to that of Style Spa. Our format will be like if you are looking for sofa the customer will know that this is the place where I can get my sofa and likewise for other products we plan to have separate boutiques.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


IIPM Proves Its Mettle Once Again....
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With millions being spent in making movies, brand managers are integrating products into stories thus providing branded entertainment to create brand recall with the emotional connect
 
“As discussed, I guarantee that I will use Brown & Williamson tobacco products in no less than five feature films. It is my understanding that Brown & Williamson will pay a fee of $500,000.00. Hoping to hear from you soon.” The writer of this letter dated April 28, 1983 – written to ‘Bob’, a film promotion associate, to confirm an agreement – was none other than one of the greatest action cinestars of all time, Sylvester Stallone. It is one of most famous instances of product placement and endorsement in motion pictures. However, much earlier in the 1920s, the first ever denunciation of product placement appeared in the weekly periodical Harrison’s Reports that lambasted Red Crown gasoline appearing in the 1919 Fatty Arbuckle comedy The Garage. But the establishment of in-film product placement as a fad happened much later in the 1990s.

Today, in the rapidly changing world of global communications, big brands have gained attractive consumer connect by placing themselves in sync with a motion picture’s real life feel. It was quite evident when Mission Impossible and Independence Day saved the day for Apple in 1996. The Twilight franchise saw actor Robert Pattinson driving a shiny Volvo XC 60 which generated over 4 million hits on Google on searching the terms “Volvo/Twilight/Eclipse”. Globally, there has been an increase in the sales of Volvo since the premier of the first Twilight movie in 2008. Similarly, Tony Stark [Robert Downey Jr.] displays 3D printing technology in Iron Man 2 using Apple Macs, positioning Apple as a highly advanced computing giant enhancing the brand identity.

New PQ Media report finds US branded entertainment spending on consumer events and product placement dipped [only] 1.3% to $24.63 Billion in 2009 and is on track to grow 5.3% in 2010, exceeding most advertising and marketing segments. Patrick Quinn, CEO of PQ Media, told AdAge recently, “It used to be that you’d buy this much commercial time and the networks would throw in these product placements for you. Now, you have agencies whose job is to add brands into scripts, making the real estate of the screen more and more important.” Movie producers are always looking to alternative revenue sources; and placing products in movies serves the purpose of both branding and promotion. The recent Tom Cruise flick Knight and Day portrays the icon on a Ducati closely followed by Benz cars in various death defying action sequences throughout the movie. Brands like Apple, Nike, Starbucks, and Adidas are regulars in Hollywood and spend big bucks on product placements.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

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