The Killer McD

My first few memories of Wimpy's, the burger joint, are of a the then new outlet that had opened up at Pritampura and inaugurated by Shatrughan Sinha a day before we set out foot there. And then there were these occasional stints at the New Delhi railway station! I quite liked their burgers, and recall that I wouldn't stuff myself on the flight, hoping to grab a bite at the station outlet.

Suddenly, however, they just seemed to have been wiped-off. None at the railway station, one mini take-away at Hauz Khas, and one not-so-neat outlet at Connaught Place, which I by-the-way spotted only this weekend. It looked like a weary old man, who couldn't stand tall anymore; and had a cloth banner furling in the air, with "Wimpy's" written on it, and no fascia or branding on the exterior. The menu seemed to be an interesting mix of burgers, pizzas, and even some Indian dishes that could probably qualify as 'Indian fast-food'. The crowd was a decent mix, mostly college couples who couldn't afford a date at expensive joints or average families who seemed to be taking a break amidst their 'window-shopping' spree. The washroom was deserted, and not even equipped with the "must's" such as the soap, disposable hand towels, toilet paper, or even water in all taps. But of-course this was noon, on the weekend; not sure how different would the evening have been though!

As I nostalgically grabbed a burger, sitting alone like old times, I couldn't but help wonder what resulted in this plight for Wimpy's and even other extremely popular chains like Nirula's, which have been wiped-off massively though they exist locally owing to the proximity to a popular commercial complex or housing locality. And after some deliberation, while I turned out to look towards the road through the glass, I was struck with the name of the epidemic - "McDonalds" or McD.

McD has started a new chapter in the history of "cheap" "fast-food" joints. I would like to modify the word "fast-food" to "burger", because burger is the only thing you get "cheap" at McD. There is no competing with McD's on price, since a local chain doesn't have the economies of scale. So whereas a consumer may shell out a little extra for a premium burger, which has an element of exclusivity, it would be difficult to get him to choose Wimpy's over McD. The price in turn is complemented by the wide-spread presence of McD, and even vice-versa, because that's where the volumes emerge from. The footfalls are both a result of price, as outlined above, and the branding and positioning.

The brand has a huge recognition, recall and visibility. Their fascias are a well done-up discernible logo, usually visible from a distance and the outlets have appropriate road signs, which alert you about the distance and directions, eg: "1 km Away' or 'Take a U-Turn here'. And sometimes, they change of your intention of 'not taking a break' to 'let's stop here for a while', more so because its not an expensive joint, and promises fast food, fast service and clean premises. And while the oldies take a break and rest, the children get to meet with their favorite uncle Ronaldo and gobble down restricted items of food.

The positioning of the brand adds a magical McD effect, which has become a part of our lingo and as something that we can relate to, and thus adds to the 'brand recall'. McD has become synonymous with burger, and especially if you want it fast, If you are in a mood to grab something on the go, you would perpetually end-up muttering, 'Let's have something like a burger from McDs', and that irrespective of whether you have a McD in the proximity, you would be able to get across your message and mood.

Other distinct niceties, though noteworthy but not very relevant to the context, are an open kitchen and a courteous, well-trained staff, who don't hesitate to serve you a complimentary burger or coke if you have faced any inconvenience at their outlet.

This sort of branding, positioning and some of the other niceties are difficult to find in most other regional joints, and that's why McD takes the cake while these joints get wiped-off. I would compromise on the branding and positioning, if I am atleast offered good grub at decent prices, and the other niceties in my locality, which is why some of these joints manage to thrive. And then, like I said, some thrive due to their strategic location, and so I get to eat at Wimpy's in Connaught Place last Saturday.

- Namrta R

Focus is back on the Customer!

In these recessionary times, necessitated by the sharp cuts in the marketing and advertising spends, the focus seems to be back on customer relations and customer support, more so in the service industry where both these factors are also crucial differentiators.

Here's an example of how ICICI bank is trying to engage its customers by ingeniously designing a forum appropriately named as 'MILAP'. It is also noteworthy that although my account is with ICICI bank in Bangalore, I have been invited for the meet in New Delhi, to a branch closest to my mailing address. This implies that they have got their segmentation of the audience right. (On second thoughts, I wonder if my bank statements are mailed to me from Bangalore or Delhi!). The initiative is commendable for its innovative approach, and cost-effective promotion (through mass-mailers) and execution (high-tea session at the bank premises). However, the invite, though appealing due to its simplicity and conciseness, fails to convince me to attend the forum; it doesn't make me feel that either 'my opinion' counts or 'I' will benefit in any way. I would also appreciate if it wasn't preposterously signed by a biggie, the head of Retail Branch Banking, instead signed by the local branch manager who will actually address and participate in the forum.

- Namrta Batra

Consumerism: Coming of Age

The tide of “consumerism” has swept the globe and has given birth to a new generation of consumer with four basic rights of choice, information, safety and redressal. With a steep increase in the disposable income, especially with the middle class, ‘impulse’ buy is catching-up over the ‘need’ buy. Fuelling this trend are the seasonal discounts, promotional schemes and attractive POP (Point of Purchase) displays or mannequins.

However, at the same time consumers today are not willing to compromise their rights as a consumer, showing concern over the honesty of advertising and the quality of consumer goods.

Birth of “consumerism”
The ideology of consumerism gained ground in 1950's and began to push for increased rights and legal protection against malicious business practices. However, it was brought into focus in 1962 when President John F. Kennedy introduced the Consumer Bill of Rights to the United States Congress, stating that the consuming public has a right to be safe, to be informed, to choose, and to be heard. Subsequently, March 15 every year is celebrated as World Consumer Rights Day. Fuel was added to the fire in 1966 with the publication of Ralph Nader's book Unsafe at Any Speed, which attacked portions of the automotive industry. When corruption of government officials in the Watergate scandal of the 1970s, coupled with widespread consumer dissatisfaction with the quality of products and inflation were combined with the greater sophistication brought about by consumer advocates, consumerism became a powerful, action-oriented movement in the USA.

U.N. guidelines for consumer rights
In response to protect the rights of consumers as articulated by President Kennedy three decades ago, the General Assembly of United Nations 1985 adopted the following guideline:
(a) To assist countries in achieving or maintaining adequate protection for their population as consumers;
(b) To facilitate production and distribution patterns responsive to the needs and desires of consumers;
(c) To encourage high levels of ethical conduct for those engaged in the production and distribution of goods and services to consumers;
(d) To assist countries in curbing abusive business practices by all enterprises at the national and international levels which adversely affect consumers;
(e) To facilitate the development of independent consumer groups;
(f) To further international cooperation in the field of consumer protection;
(g) To encourage the development of market conditions which provide consumers with greater choice at lower prices.

Consumer rights in India
The resonance of the U.N. declaration on consumer rights was also felt in India and to ensure consumer welfare the Consumer Protection Act, 1986, was introduced. A separate Department of Consumer Affairs was created in the Central and State Governments to exclusively focus on ensuring the rights of consumers as enshrined in the Act. This Act has been regarded as the most progressive, comprehensive and unique piece of legislation. In the last international conference on consumer protection held in Malaysia in 1997, the Indian Consumer Protection Act was described as one "which has set in motion a revolution in the fields of consumer rights, the parallel of which has not been seen anywhere else in the world."

The special feature of this Act is to provide speedy and inexpensive redressal to the grievance of the consumer and provide him relief of a specific nature and award compensation wherever appropriate. The most important feature of the Act is the provision for setting up a three-tier quasi-judicial machinery popularly known as "consumer courts" at national, state and district levels. The apex court, National Commission functions in Delhi. Every State Government has a State Commission. The third tier is in each district and is called District Forum.

Factors responsible for rise in consumerism
The sudden spurt of the service industry and the rise in disposable income with the middle class has resulted in a paradigm shift from the “seller’s market” to the “buyer’s market”. This in turn has led to a sudden surge of consumerism. The producers, propelled by the competition in the market, try to differentiate their offerings by customizing them to the needs of the consumers.

The increasing penetration and use of the internet has also contributed significantly to the rise in consumerism. e-Marketing helps a consumer transcend beyond the boundaries of a physical market and be updated on the latest discounts, offers and trends.

Implementation of several consumer laws to protect the rights of the consumers against any unfair act, practice or bargain has also been a silent aide pushing consumerism.

The rise in consumerism in the society can also be correlated to the prevailing socio-economic factors. In general, consumers in the West are less willing to compromise on the quality of the product, and more aware and vociferous about their rights.

So, is consumer the king?
It is interesting to note that inspite of U.N. recognition, encouragement from the developed countries and the pro-active role played by the Government, the consumer in India still does not get his due. Worse still, he doesn’t even ask for his due!

“In India, there is always a scope for dissatisfaction post-purchase, with no option of exchange or buy-back. So, if something doesn’t perform as promised, we blame it on luck!” exclaims Sancharita Chatterjee, a sales representative.

In India, for most people consumerism is only a feel-good factor, just like gender equality and secularism. Though it’s a subject of discussion at the public forums but when it translates into actually standing up for the rights as a consumer, there is a sudden resistance and withdrawal.

When asked why, Maria D’souza from Human Resource department explains, “There is an inexplicable hesitation and social stigma involved when it comes to dealing with lawyers and trial courts, even amongst the educated class”, she adds almost as an after-thought.

Raghvendra Mittal, a finance professional, believes, “There is a thin divide between demanding your right and creating a fuss over what wasn’t even guaranteed by the seller/producer. What makes me abstain from filing a lawsuit and getting involved with the legal procedures is the general perception of the procedure being lengthy and cumbersome, while the lawyers being manipulative and exploitative.” Everything said and done, the punishments doled out to companies in most consumer cases are often very minuscule, and don’t serve as a deterrent for them to improve their record or a disincentive not to indulge in such practices. “So, then we should really ask ourselves if it is worth,” exerts Harsh Vardhan, a businessman.

So, whereas enacting the legislations and regulations are definitely an encouraging step forward in consumer movement, but consumerism still remains only a feel good factor. These procedures need to be further simplified and implemented more stringently. On the other hand, the consumers need to be made aware of their rights, convinced about the ease of understanding these laws, the convenience of implementing them and the benefits of demanding them.

- Namrta Batra

Set the right expectation & stand by it!

I have very vague, but fond memories of flying 'Go Air' in '06. And as I recall, I was particularly impressed by their timeliness, service and crew. Indeed I also recommended the airline to few, over the other LCCs (Low Cost Carriers), sort of WOM (Word-of-Mouth) advertising for them, though I didn't get paid for it :( But my latest, and probably the last, Go Air experience really marred my impression of the airline. Needless to say that it didn't bear any semblance to any of those faded memories I had of the then carrier or the crew.

So, let me run you thru' the sequence of events. On my way to the airport, I received an sms from the airline announcing a 40-minute delay. Having set already, I decided to hang around at the airport, and thumb-up a good book. So, I propped up my dangling feet on a spacious couch in the departure lounge, past all the checks, and waited to board a 40-min delayed flight. Well, delays often happen, rather always, and it's good to be prepared for it rather than anticipate. Personally, anticipation kills me.

I waited for some good two hours, eagerly following all announcements, with no information about my flight. It was then I started getting anxious. I looked around for the Go Air crew, and found none. Though there definitely was an empty kiosk with a colorful Go Air sign. Soon, I found other passengers, also baffled, waiting for any information about the flight, and searching avidly for the Go Air staff, who really seemed to be eluding their passengers.

Another hour passed-by. Now the passengers started asking random airport officials, and crew from other airlines, for the status of flight. We also requested them to call someone from Go Air to help the passengers with their queries, but no luck. Ridiculously strange, but true, it was then that sitting in the departure lounge, I actually called the Go Air call-center, and then their airport office, barely half a mile away from me, for the flight status. After a long two and half hour wait, I had also tried to sneak out of the departure lounge, to get an update on the flight. But it being the airport that it was, I had been watched, checked & restricted from doing so.

Its alright to be delayed, even for six hours, and I am sure the airline had thousand excuses, true or untrue, but I was a goddamn customer, and I had the goddamn right to know that my flight had been delayed, and more so, because I had bought that right!

After the long six hour camp, finally the crew appeared from a corner, and announced the boarding. People did yell, but they seemed to be oblivious, shut, from it all. We boarded, angry, furious, only to find straight-faced, curt air host & hostess were dressed in track suits, and if anyone asked them for water, they would yell “10 rupees”, ensure they collect the cash, and then get a glass of packed water from behind a small, dingy shelf. They put me off too, just as much as the long six-hour weight, and the crew at the airport. But what about them? Was it the track pants? May be, yes. Was it the lack of courtesy? May be, yes. But these guys weren’t rude. They were just straight-faced, just like I am when I meet strangers. Well, maybe. I guess, that’s where the difference lies. A mismatch of expectations and deliverables. The industry expects you to expect these air hosts & hostesses to be warm, and helpful. And any kind of expectations not met results in a disappointment.

On a product level, this can be applied when the manufacturer or seller promises A-B-C, thereby setting the customer expectations, and if he fails to deliver accordingly, the product fails miserably in the market. On the other hand, there are products that set very reasonable expectations, and promise a single or a few attributes to the customers, usually the USP (Unique Selling Proposition). Volvo, for example, stands primarily for safety, and secondarily for comfort, but it doesn’t promise looks or speed. Tide, being priced lower than the other detergents, ensures value-for-money, and doesn’t promise anything beyond bleaching the clothes white.

Even on a personal level, I feel managing expectations is a real challenge. An individual, just like a commodity or brand, should commit only what he can realistically deliver, and deliver as promised. And, its better to promise a little less than fail on your deliverable, which I believe is equivalent to cheating because when you over-promise, you are cheating yourself since you know your real ability, and it results in cheating the others because he would take your word, and count on you.

I think every principle of branding and marketing can be mapped-back and also applied to an individual. Infact, its amazing to relate and apply these fundaes to ‘I’? It really makes me feel that I am living in a closet full of brands, myself being in the process of becoming the brand 'me'. (Read label: Brands)

- Namrta Batra