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Retailer Spotlight:
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Tips & Tricks:
Groomed for growth - 3
Brand Speak:
Madan Medical & General Store - 4
Handling dead stock the smart way
Piling up of inventory is a sad reality that almost all retailers face, but there are ways to manage it better
Name one phrase that can
scare the living daylights out
of any retailer. Need a hint? It
refers to products that sit on
shelves for days, weeks, even
months, and show no sign of
being sold.
That phrase is 'dead stock'
– the bane of every retailer,
and the unavoidable reality of
business.
There are products that
sell. Then there are those
that just don’t. The latter
often turns into dead stock,
eating up shelf space which
could otherwise be allocated
to other deserving products.
It costs valuable manpower,
time, and money to manage
dead stock.
What causes dead stock?
Shopkeepers and store managers cannot always gauge the
absolute demand
for a product and
request for its supply accordingly.
This leads to dead
stock.
Many stores
and brands have
had to shut shop
because their products could either
not gain traction
among consumers,
or were considered
unnecessary. There
are also products
that stay on store
shelves because
they haven’t been
priced appropriately
or aren’t marketed
well.
Dead stock may
adversely affect
a store’s image.
Consumers do not
like to see dusty
products on store shelves.
Regular visitors to the store
may feel that it doesn’t rotate its products, and keeps
“non-fresh” items. A negative
image can be a big drag on the
store’s business. Therefore it’s
important for retailers to give
dead stock its due attention.
Many a time new products
are brought into the stores in
the hope consumers will snap
it up. It is a gamble, of course.
Sometimes, the strategy pays
off, at other times, it doesn’t. It
so happens that certain products go out of fashion or stop
finding favour with consumers
– perhaps because of better alternatives becoming available
in the market, or because the
retailer just didn’t have a proper perspective on consumers’
on-going preferences.
What can be done under
such a dreadful scenario? A
retailer needs to be innovative
and creative in getting rid of
dead stock and ensuring that
it doesn’t keep recurring in
the store.
Prevention is better than
cure
Steering totally clear of
a dead stock scenario is ideal, but experts feel that this
is next to impossible since
no system can be 100 per
cent efficient at predicting
consumer tastes and wants.
Nevertheless, retailers must
closely monitor their stocks
and categorise them as ‘slow
moving’, ‘fast moving’, and
‘non-moving’. They must pay
extra attention to really slow
moving products, for these
will likely turn into dead stock
in future. It is better to be alert
before disaster strikes. The
orders for such stocks need
to be either stopped or drastically reduced to the minimum
possible quantity so that a few
customers who still want them
do not return disappointed.
It is also good to keep a
close eye on information like
packaging dates and expiry
dates because stocks often
turn dead on the shelves due
to age.
Several in-house inventory management tools are
available today that can be
implemented to check on
dead stock, gauge their value
and look for ways to liquidate
them.
Continuous research is
key to dead stock management. Retailers should keep
watch on “what’s in” and
“what’s out”. They should
also work more closely with
brands to understand consumer trends better. Knowing
what is working in other markets is likely to give retailers a
better idea about the products
that are likely to work, or not
work, with customers.
How to handle existing dead
stock
Even the most alert
retailer cannot eliminate this
problem completely. So what
does one do with stocks that
have already turned dead?
In such a situation, it may
be better to sell the product at
a lesser margin – or even zero
margin – than getting stuck
with it. Retailers can offer such
products at generous discounts
for a ‘limited period,’ or with
offers such as ‘buy one get one
free.’ This may inject new life
into dead stock and succeed in
bringing in customers. Such
schemes are common in apparel retail, and can be implemented in food, electronic and
other formats of retail as well.
Retailers can also try
bundling relevant products together so as to sell the existing
full price product along with
an older product that has been
hogging space in the store or
warehouse.
Another route open to
small retailers is to make
offers online, where the
audience is much larger
and chances of a sale might
be better. Today, there are
e-commerce players who let
out virtual space to retailers
where the latter can put their
products up for sale. Retailers
can easily get rid of their dead
stock on such online platforms
too.
Sometimes, dead stock
is a function of low in-store
visibility of the product. Retailers can move these items
faster by not letting them
sit somewhere on the inner
shelves. Instead, these items
can be prominently placed on
separate counters so that they
are highlighted more.
Most importantly, the retailer must know his customers well and get their feedback
regularly. By doing this, he
can stock the inventory that
suits his customers. If this is
done, chances are that the
retailer will not only avoid
getting into a ‘dead stock
scenario’, but will also end up
building better relationships
with his customers.
Selling in style – a look at in-mall shops
The rising popularity of
shopping malls in metros and
towns has impacted not just
the lives of shoppers, but also
retailers. Many retailers who
own stand-alone stores are
today competing with these
malls, which usually offer a
more pleasant, seamless and
multi-dimensional shopping
experience. So should you
consider moving your shop
into a mall? Depending on
the kind of store and the kind
of mall, there are arguments
both for and against the idea.
Let’s examine them.
The difference
In general, most malls
have certain distinguishing
aspects. For one, they are built
on significantly larger areas
to accommodate more stores
and buyers. India’s largest
shopping mall, LuLu Mall in
Kochi (Kerala), is spread over
17 lakh square feet. Second,
they are usually located near
upper-middle-class or affluent
residential areas, and so have a
steady flow of visitors through
the week. And finally, they
provide additional services or
amenities beyond shopping:
air-conditioned walkways,
proper restroom facilities,
food and beverage options,
gaming zones, movie theatres,
live shows and contests, etc.
There are certain
advantages to having an inmall store. The primary one
is that the retailer can ride
on the popularity of the mall
and its proximity to prime
residential locations. Most
malls undertake extensive
promotional activities, which
mean that the pressure on the
mall-based store to advertise
its presence is less compared
to its stand-alone counterparts.
Consumers visiting malls also
tend to be in a relaxed mood,
thanks to the comfortable
ambience, and usually browse
around different shops for a
longer period of time, which
increases the stores’ chances
of making a sale. Also, in
malls, a smaller retail store
would be in close proximity to
larger or multinational brands,
which could also give it the
feel of a larger brand – a
potential stepping stone to
branding and launching the
smaller store on a national
or an international platform.
On the other hand, there
are some grim realities. Of
an estimated 200 shopping
malls in India, many are
suffering due to poor
planning, mismanagement
and other factors that have
hit footfalls. Several stores
in such malls have since shut
down or relocated elsewhere.
Then there is also the reality
of rental costs, which can be
anywhere between Rs.100
per square foot per month,
to Rs.700-Rs.800 per square
foot per month in the largest,
premium malls. If a retailer is
ready to pay these amounts,
he must be satisfied that he
will get adequate business. To
state an example, a 300-square
foot store in a mid-level mall
could pay around Rs. 400/
sq.ft./month, or a rental of
Rs.1.2 lakh. If one assumes
that rent cost should account
for only up to 10% of sales,
then the shop needs to sell
at least Rs.12 lakh worth
of goods every month to
justify the cost. A luxury or
electronics store may find this
viable; a grocer or handicraft
store might not.
And finally, the e-retail
boom has not spared malls
either. Mall traffic has been
hit by online retailers and their
aggressive discounting. This
is leading some malls to round
up customers by focusing on
providing other factors, such
as food and entertainment,
besides access to international
brands.
How to decide
As a retailer, you need to
do a proper cost-benefit analysis before deciding whether
an in-mall store makes sense
for your business. Some of the
things you need to consider
are as follows:
Your store category:
Store categories that generally do well in shopping
malls are food & beverages,
branded electronics, health &
beauty products, salons and
hairdressers, pharmacies and
hypermarkets. However, categories such as music and book
stores have not been doing
so well, thanks to changing
consumer preferences. The
more premium malls prefer
to have stores that provide a
clear value-addition or differentiated service. Therefore, an
‘ordinary’ store may not be
able to get into one of these
high-end malls unless it can
prove that it is on par with the
other brands located there.
Cost structure: The cost
structure depends on the mall
developer. Usually, most malls
charge stores a base rental
every month, along with a
fixed percentage of the store’s
turnover if it crosses a certain
level. Rents for ground and
lower floors often cost more
than higher floors. In addition
to rent, there is a maintenance
fee levied for utilities (electricity, water, cleaning etc.).
The combined rent and maintenance need to be viable for
the retailer to do business in
the mall.
Mall footfalls & relevance: Ensure that the mall
you consider has healthy
footfalls of consumers who
are relevant for your business.
For example, a mall may not
be the best place for a store
selling electrical hardware.
Also, do your homework into
the average daily footfalls and
average trading density (ratio between overall sales and
per-square-foot area) of the
mall. Try to speak to other
retailers in similar categories
who operate in malls to get
an idea of their sales.
Shop or kiosk? Sometimes you might not need a
shop – a kiosk might be sufficient. Kiosks are smaller and
cheaper than store areas and
are leased out for shorter periods of time. This might give
a small retailer more flexibility than a full-fledged store.
Rental periods on shops tend
to be between 3 to 10 years
in most cases.
Under-construction
mall: If you’re planning to
take a chance and go for a mall
that is being built, do ensure
that you have full details as
to its completion deadlines.
High land and construction
costs have impacted time-lines
on many commercial projects,
hence you should ensure that
your plans don’t get upset by
such delays.
Rental hikes: Larger
malls often revise lease rates
on a regular basis. Do some
homework on the past hikes
and what you can expect in
future. Regular lease hikes
might be expensive, but they
are comforting to some extent
– since they indicate that the
mall is doing well and space
is going at a premium.
LIVE BRANDS
2
JUST BUY LIVE TIMES | NATIONAL EDITION-9 | MARCH 14, 2016
Eureka Forbes’ Tandarust Bharat
initiative to address inaccessibility
to safe drinking water, clean air and
sanitation in India
In a major step towards addressing the national challenges pertaining to water, air,
sanitation and hygiene, Eureka
Forbes, India’s leading health
and hygiene company, today,
launched ‘Tandarust Bharat’
– a national social initiative
which encompasses partnership, action and innovation
towards a larger vision of creating a healthier India. Eureka
Forbes’ Tandarust Bharat is
inspired by the Government of
India’s marquee national programmes - ‘Swachh Bharat’
and ‘Healthy India’ instituted
for the welfare of all Indians.
Under the aegis of Tandarust Bharat, each brand of
Eureka Forbes will address
different dimensions of
health with unique, individual initiatives, while sharing
a single, larger vision of a
healthier India unanimously
- Aquaguard (for safe drinking
water), Aeroguard (for clean
air) and Euroclean (for clean
& hygienic surroundings &
environment).
For over 33 years, Eureka
Forbes has been committed to
the cause of enabling a world
with a happy, healthy, safe and
pollution-free environment for
all with its innovations and
initiatives. Taking from the
philosophy of “Only if people
of India are healthy, will India
be healthy”, the company has
taken yet another significant
step with Tandarust Bharat
towards its commitment to
India and its people.
The company kick-started its first national programme ‘Jal Daan - 5 Litre
Sehatman Paani Pilao, Tandarust Bharat Banao’ about
3 months ago to encourage
individuals to donate 5 litres
of clean and healthy drinking
water everyday to the ones
who don’t have access to it.
For this initiative, Eureka
Forbes has instituted http://
www.jaldaan.org/ for individuals to pledge and participate
in a national movement of
making safe drinking water
accessible to millions. For
every pledge taken, Eureka
Forbes will contribute Rs.
10 towards creating a corpus
for installing 100 community water purification plants in
urban and rural slums.
Actress Madhuri Dixit
Nene and Dr. Shriram Nene,
the goodwill & philosophy
ambassadors of the brand who
have been championing the
cause of good health, have
also extended their support
to this massive social move-
ment. With
the active
support of
esteemed
organizations like
Shapoorji Pallonji
Group, Lions
Club International and
Give India,
E u r e k a
Forbes aims
to spread
awareness
and take pledges from over
1 million Indians.
Under the Jal Daan initiative, the company is reaching
out to individuals and children
across the country with education drives to raise awareness
Talking in Numbers:
Currently, India is reeling under
an acute crisis with deteriorating quality of air and water
and increasing risks of health
problems owing to unhygienic
living conditions.
• 120 of 122 countries – India
ranks 2nd last globally for
quality of potable drinking
water
• 3.8 cr people fall sick every year
due to water-borne diseases
• 13 of the top 20 most polluted
cities are in India according
to WHO
•1/3rd of India’s 1.2 billion
population don’t have access
to basic sanitation facilities
about the importance of consuming and sharing safe and
healthy drinking water, and
encouraging them to be a part
of the noble cause. These programmes have already been
activated in Mumbai, Chandigarh and Kolkata, and will be
facilitated across other states
in a phased manner.
In line with the ‘Jal
Daan’ philosophy, the other
two brands will soon initiate
various mass media campaigns
and on-ground activations,
with an aim to safeguard the
wellbeing of all thus creating a healthier nation. These
continuous mass engagements
and platforms will help unite
and amplify efforts of a community of people who believe
in the potential of building a
healthy world.
Mr. Shashank Sinha,
Senior General ManagerMarketing, Eureka Forbes
Limited, said, “Since the inception of Eureka Forbes, we
have been striving to provide
a healthy and happier environment to our consumers
with our various initiatives
and products. Today, water
contamination, air pollution
and abysmal living conditions
have become a socio-economic hazard in a nation like India
impacting millions of lives
every year. We aim to address
these challenges with our
Tandarust Bharat initiative.
Our constant endeavors and
efforts will remain to translate
dreams for a cleaner, healthier
and hygienic India – ‘A Tandarust Bharat’ - into reality by
collaborating with like-minded
organizations, communities
and people.”
Follow @TandarustBharat
or Join #Tandarust Bharat
initiative on Facebook: Take
a Jal Daan pledge on website: http://www.jaldaan.org/
or by giving a missed call
on 07210772107 and watch
the digital film: http://bit.
ly/1VECbJw
Tweet: Join #EurekaForbes
campaign #JalDaan to share
5 litres of healthy drinking
water.
Turning passion into action
Asim and Aditi Dalal founded
The Elephant Company (TEC)
four years ago with the objective of making happy and
vibrant products that blend
design seamlessly with utili-
ty. As a company that creates
unique designs with an Indian
feel, The Elephant Co. breaks
monotony and adds colour to
routine life. The couple talks
about the firm, about the entre-
preneurship journey so far, and
how they convert passion into
action to get the best quality
products on board.
What inspired you to get
into the art and home décor
segment?
Asim: We saw a huge market
for home and certain personal
accessories. We entered this
segment with a motive to make
everyday life more interesting.
Our portfolio encompasses different home décor items from
trays to coasters, cushion covers,
table mats, cups and saucers,
mugs and wall art. We design
products with unique colours
and designs. Consumers like
the fact that our products are
not very expensive, but have
great designs and enable them
to make a fashion statement.
At the same time, utility
is very important to us. Our
products can be used on a daily
basis. The Elephant Company
products can be conversation
pieces and ice-breakers. We
have very interesting designs
on our products.
Why did you choose the name
‘The Elephant Company’?
Asim: We wanted to give
our brand an easy-to-remember
name; one that wasn’t complicated. Later, I realised that
when it comes to handicrafts,
elephant designs sell the most.
Also, the elephant signifies
long life, is pleasant to look
at and is liked by young and
old people alike. As a matter
of fact, our logo also has four
different elephants and four
different colours signifying
vivaciousness.
Are your designs inspired
by any particular art form
or region?
Aditi: Since India has a lot
to offer, we direct our design
team to have designs inspired
from India. Therefore, we have
a modern Warli (Indian tribal
art) collection. The Gond (a
traditional art form) collection
is modern with a twist. The Elephant Company is also inspired
by Indian art and culture and
monuments. You will also see
a design play with birds and
flowers. It does not necessarily need to signify something
from India. For example, we
have a chevron (a ‘V’ shaped
line or stripe) design which is
contemporary.
Tell us about the performance
of the home segment.
Asim: The home segment
is doing really well for us. The
Elephant Co. is well known
for its trays, cushion covers,
mugs etc. Besides, our wall
arts are also doing well. At
The Elephant Co., we want to
add spunk and colour to any
space, be it your living room,
kids room or even your office
space. The product does all
the talking for us. Our unique
design products are great for
gifting also, be it house warming
gifts, birthday or even Diwali
and ‘Secret Santa’ gifts.
How do you keep introducing
innovative products?
Asim: The Elephant Co. has
new designs coming up every two
months and as the need arises,
we keep adding new products
also. For example, we started
with iPad covers and moved
on to laptop bags. The latter
gained acceptance on a large
scale, which led to repeat orders
and modifications. Similarly,
our umbrellas are also a huge
hit because we come up with
unique designs on our umbrellas every year. The designs
need not be boring for us. Then,
there are new structure of trays,
lamps and new kinds of wall
arts (framed ones). This used
to be only on canvas earlier.
We also have fashionable bags,
clutches and wallets.
Would you like to give out
any message to youngsters
who want to initiate their
own start-up?
Asim: Today, youngsters
who wish to get into business
need to have their goals set. I
believe that an entrepreneur
should have leadership skills
and the ability to learn on the
job. Young entrepreneurs also
need to learn from their mistakes
and not give up if they fumble.
This is an excellent quality
that a young entrepreneur
should have.
LIVE TRENDS
3
JUST BUY LIVE TIMES | NATIONAL EDITION-9 | MARCH 14, 2016
Groomed for growth
Tips
&
Tricks
Today any large general or
kirana store would be incomplete without a full set of
men’s grooming products such
as personal care, skin care, hair
care and fragrance products.
Brands are increasingly recognising the Indian male’s desire
to be well-groomed and are aggressively targeting this growing market. In fact, the men’s
grooming segment today has
become highly competitive,
with brands vying fiercely
for the consumer’s attention.
Kiranas, general stores and
supermarkets have adapted
to this new emerging trend
and are stocking products for
men’s wellness needs.
This is a relatively new
trend. Even a decade ago, it
would be rare to see even a
facewash being sold specifically for men. On the other
hand, women’s facewashes,
facial packs, soaps, night
creams, body washes etc. have
been a regular feature on store
shelves for decades. That trend
has completely changed today,
with the beauty and wellness
market expanding to include
men into its ambit. Men have
whole-heartedly embraced the
trend, and are only too willing
to spend on specific products
that suit their body type, likes
and preferences.
The rise of male grooming
products is also an indicator
of changing societal trends. At
one point of time, women did
all the grocery shopping for
the household. Today, shopping is more a family affair.
And, with men still largely
controlling the purse strings in
most Indian families, retailers
have realized the importance
of giving them what they want.
Experts say what has
brought about this major shift
in man’s approach toward their
own grooming is the change
in societal status of women.
Today, women’s perspective on
what they look for in a partner
is playing an important role
in men’s changed attitudes
toward grooming. With more
and more women stepping out
and becoming independent
and male-female co-worker
rations in most organizations
finding a fine balance, men
also have become aware and
conscious toward their external
appearances.
Talking about the evolution of the male grooming
category, Ashok Namboodiri,
Business Director, JK Helene
Curtis said, “In the last few
years, we have been seeing
a noticeable change in male
grooming trends. Men are today asking for products for
themselves, instead of just
using their partners’ grooming
products.”
Widening range of products
Products like perfume
were always part of the male
grooming portfolio. But in recent years, the category has
expanded outwards in a huge
way. Male grooming products
today straddle categories such
as fragrances (perfumes, deodorants, cologne, talc), hair
care (colours, shampoos and
gels), skin care (facewashes, cleansers, acne and skin
lightening products etc.) and
hygiene (talcs, soaps, body
washes) to name a few. Brand
manufacturers are today putting
much more effort into finding
out what men like and creating
products accordingly. For example, Namboodiri says that
since men are typically pressed
for time, they prefer all-inone solutions with multiple
benefits. It is also observed
that men typically like ‘sporty’
themed products with bright
and vibrant colours. Insights
such as these are driving the
development of new products
for male grooming. The trend
is being supported by the rising
popularity of men’s saloons and
the emergence of male celebrity
icons who idealise the image
of the well-rounded male – an
accomplished individual who
also takes the time and effort
to look good and feel good.
Indian men are not shying
away from experimenting with
new product launches flooding
the market. Many of these male
consumers are well travelled
and aware of the existing global
trends. Not only are they aware
of the products they use, but they
also keep a watch on emerging
categories such as ayurvedic or
herbal products. Neelam Jain,
founder, Krishgen Bio Systems
discloses,“We are seeing a lot
of interest from men for our
products. That’s why we aim
to introduce male-focused
products.”
Galloping market
Studies estimate that the
Indian male grooming market
will hit Rs.5000 crore by 2016
and keep growing at a rate of
over 20% year-on-year. Rapid
urbanization, a large young
male population, and increasing
social acceptance are the biggest drivers of the Indian male
grooming market. The idea of
male beauty and grooming is
no more an aberration, but has
become the norm. And it is not
only male consumers in metro
cities who are responsible for
the boom. Their counterparts
in smaller towns and cities are
equally keen to experiment
with different types of products. Today grooming products
are available at different price
points, and are being distributed
across the country. Thanks to
these factors, grooming routines are getting increasingly
complex. From merely using
1-2 products a few years ago,
a typical middle class Indian
male easily uses 5-6 products
on a daily basis today. This is
great news for manufacturers
and retailers both.
The boom in the male
grooming market has just begun.
There is significant potential for
the market to add new categories
or sub-categories. For example,
ordinary razors could evolve
into battery-powered razors
and trimmers; skin care creams
could also get sun-protection
or anti-ageing properties. The
potential is endless, and the
market is expected to take
off in a huge way in days to
come, with increased exposure
to the media and usage of digital
platforms.
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LIVE BAZAAR
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JUST BUY LIVE TIMES | NATIONAL EDITION-9 | MARCH 14, 2016
Brand
Speak
Boss Electricals
“After sales service is a
driving force for us”
At the time, were you sure
it would work?
People were used to
mixer- grinders, but to have
an electrical device that you
could hold and dip into buttermilk to extract butter, or
grind ingredients together to
make chutney or batter, was
something absolutely unheard
of. We faced a lot of scepticism. But our chairman was
confident that this will work.
And it did.
There are a very few brand
names that go as far back as
Boss in India. In some homes,
Boss home appliances have
adorned kitchen shelves The
company began in 1985 with
just one product: hand blenders. Today it makes about 55
products. Hitesh Doshi, Director – Marketing, discusses
the company’s journey and its
future plans.
Boss Electricals introduced
hand blenders to India. How
did the idea occur to you?
The hand blender was the
brainchild of Manilala Gala,
the company’s Chairman. In
his hometown of Kutch (in
Gujarat), he had seen local
women making butter by
churning the butter-milk using a wooden stirrer (Bilauna).
Extracting butter through this
Retailer
Spotlight
manual process would usually take about an hour or so.
He wondered if the rigorous
labour involved in this process could be eliminated by
motorising it. This thought
sowed the seed for India’s first
hand blender. Later, we kept
innovating, and added other
removable blade attachments
that could grind and mix food
as well.
Have you been able to sustain your first-mover advantage over all these years?
We lead the market today
with around 60-65% share.
When we started, we were
making only about 20-25
hand blenders a day. Today
we make around 2,500-3,000
pieces. So you can gauge the
jump. Newer companies have
to match the excellence that
we have achieved in this
category and it is always
difficult for new companies
to do that. I can confidently
Did you always aspire to get
into the pharmacy line?
I come from a business
family. My father was in
the transport business. I,
however, wanted to study to
be a pharmacist. My father
supported my plans, and had
even purchased a shop area
for me. After completing my
studies in 1990, I decided to
get some work experience. I
joined a friend’s medical store
and worked there for a year.
My friend taught me a lot of
things, such as how to handle
customers, the importance of
reading instructions carefully, and why one must never
dispense medicines without
proper knowledge of its dosage
and effects. Having learnt the
ropes of the trade, I started
Madan Medical & General
Store in mid-1992.
How has the field of medical
retail evolved since then?
Things have changed tremendously. When I started
this store, there were barely
50 recognised pharmaceutical
manufacturers. There are probably thousands of them today.
I also remember that cancer
medicines in Mumbai used to
be only available at Tata and
KEM hospitals. Today, those
medicines are easily available
at chemist shops everywhere.
Customers too, are much more
knowledgeable. Even less educated buyers today ask about
the expiry date of medicines
before buying them.
What about the demand for
medicines?
That too has
grown because of two
factors: the increasing
number of doctors and
rising health problems.
When I started Madan
Store in 1992, there
were just a couple of
doctors in this area.
Today there are easily
8-10. The greater the
number of doctors in
a given area, the better it is for chemists
there. The other factor
is increased vulnerability to illness. My
opinion is that people earlier used to be
much healthier than
they are now. Today,
medicines for diabetes,
blood pressure, cardiac
medicines and seasonal
illnesses are in high
demand.
Chemist stores today
also sell a lot of general retail products.
In that sense, are you
competing with general retailers?
I wouldn’t say we
compete with them.
But yes, we do need
to store everything a
customer might ask for,
as they know exactly
How did the brand name
Boss come about?
There is a funny story behind that. Our chairman Manilal Gala used to frequently
address friends and colleagues
as ‘Boss’. So when he began
conceptualizing the home
appliances business, some
people suggested that he name
the company ‘Boss’. And the
idea really appealed to him!
What has been the focus of
your marketing strategy?
After-sales service is a
driving force for us. Even
though we are selling products, we believe we are in the
service industry. People don’t
buy home appliances too often. Mostly, once bought, such
products remain on kitchen
tables for years. Therefore,
customers expect excellent after-sales service for such products and we have always been
focused on that. We make sure
that customers’ complaints are
attended to in 24 to 36 hours
and that they get their products repaired quickly. We have
created a very strong network
to ensure this. We believe that
those who have already put
their trust in us, should not
feel that they didn’t make
the right choice. A satisfied
customer is our best advertisement.
How do you reach out to
your target customers?
We have not done much
direct advertising. Product
demos before our target
groups has constituted our
main marketing strategy.
We are regularly in touch
with women’s groups across
cities. We sponsor many of
their programmes, such as
cultural shows or kitty parties. During such occasions,
our sales team arranges live
demos of our products. We
also go to women’s colleges
such as SNDT in Mumbai
How has your product development process changed
over the years?
In the early years, we used
to introduce 2 to 3 products
every year. But in the last
three years or so, we are in
‘speed’ mode. We have been
launching 5-6 new products
per year. Today, our infrastructure is very much in
place, and distribution network is pretty strong. There
are a few distributors who
have been with us for the
past 18-20 years. They look
up to us during their personal troubles or crises, and we
always make sure that we are
there to support them during
such times. Creating strong
bonds with your distributors
requires you to go beyond
purely business aspects. I
can say that we have earned
their loyalty and trust over the
years. But for our distribution
to continue to remain strong,
the most important thing is to
come up with new products
and that’s what we have been
doing.
How are you strengthening
your brand value?
Today, no home appliance
company can claim to enjoy
consistent brand loyalty. It
requires continuous work.
Generations change every 4
or 5 years. Those who are in
colleges today, will be running
the kitchens tomorrow. So we
make sure that we reach out to
Madan Medical & General Store
Handle with care
Twenty four years is a long
time for any business. That’s
how long Madan Medical &
General Store has been faithfully
serving customers in the city
of Thane. In all these years,
Jitendra Madan, the store owner, has witnessed a complete
transformation, both in the
field of medical retail and in
customers’ awareness about
drugs. In this discussion with
Just Buy Live Times, he talks
about his observations and
the trends he sees affecting
his business.
say that we continue to enjoy our first-mover advantage
even today.
regularly and give demos of
our products. In addition, we
have been sponsoring cookery
shows on TV quite regularly.
what they need and are not
willing to accept substitute
brands. Earlier choice used
to be limited to a handful of
companies such as Hindustan
Lever (today HUL), Dabur,
Nestle, etc. It is only in the
last decade that thousands of
brands have entered the scene.
For example, in hair colour
alone, we have hundreds of
variants. Apart from this, we
stock general products such as
food, cosmetics, confectionery,
baby and bath products.
Along with business, competition also must have risen…
Yes, smaller chemists everywhere are competing with the
large pharmacy chains which
are open 24 hours a day. These
chains provide huge discounts
to customers because they deal
in much larger volumes. We
cannot match those kind of
prices, since it would hit our
margins. However, we do plan
to modernise. The first step in
that direction is to get ACs
installed in the store before this
summer begins. We haven’t
done it so far because we feared
less educated consumers might
think that we’re expensive just
because we have air-conditioning. But air-conditioning is
also important from the point
of view of helping products
stay fresh for longer.
That’s an interesting observation. Any other challenge
you face?
The main challenge is
maximum number of colleges,
especially women’s colleges,
and let the future generations
of women know all about our
new products. Besides, we keep
up with our existing customer
base through live demos and
sharing of various recipes with
them.
Apart from your hand blender,
which of your products you
consider to be prime movers?
In mixer–grinders, we are
doing very well. Our irons,
juicers and toasters are also
a hit. We are very strong in
the Western region. We have
a presence in the South but
that market requires continuous networking and work, and
currently we are strengthening
our presence there further. In
India, habits and cultures are
different in every region. So in
rural and semi-urban Gujarat
our hot kettles are not such
a big hit because people are
used to making tea fresh every
time they want to have it. But
in metro cities they are a big
hit, of course. So we create
our focus according to every
region’s tastes and preferences.
Are new product launches
expected from Boss?
We are planning to launch
2-3 new products before Diwali
this year. These won’t exactly
be home appliances, but can
be sold under that broad category. These products are in the
expensive category and today
in India, only 2 or 3 dealers
sell these products. Currently,
I cannot disclose what they
will be, but we will finalise
our plans in April.
there is high attrition among
trained staff. People work for
a few days and then leave for
another shop, or to start their
own shop. That means that
we have to start looking for
new people and train them
from scratch. So that is our
primary challenge.
What is your philosophy for
handling customers?
We ensure that whenever
a customer visits our store, he
is met with a friendly smile
and helpful attitude. We strive
to create a positive experience
for the buyer right from the
moment he walks in.
getting and retaining trained
people. In this field, we cannot
rely on untrained people to
handle medicine. However,
Can you share your future
plans?
I plan to expand the store
and am searching for a location where I can start a new
medical store.