Agenda for Modi 2.0!

Dear Mrs. Sitharaman,

First things first. Congratulations on becoming the finance minister of the country. Ever since you have taken over, there has been a flurry of unabated, unsolicited advice on what you should do and should not, in the upcoming budget. I was extremely reluctant to add to that already long list. But then your extremely gracious and earnest tweet the other day, welcoming all suggestions and inputs changed my mind.  Being from Trichy as well, I could see the “Trichy Tehzeeb” in that request!  Hence this piece, with my wish list not just from the budget but overall from the Modi Sarkar 2.0 from an economic agenda point of view.

I am not an Economist. I am just a keen and informed observer of Indian politics and a well-wisher of our country. So, my points may or may not stand the scrutiny of economists but hopefully will pass muster with the readers of this post.   I promise that I am not going to repeat a lot of stuff which has already been suggested by the erudite in their pieces.  So, here we go:

  • First up, the positive effects of implementation of GST and the kicking off of several infrastructural projects from the 1st term will start bearing fruits in the coming 2/3 years. So, I suggest that the 5 year term till May 2024 be divided into 2 parts – First 3 years till 2022 and the second 2 years till 2024. Take all the tough decisions in the 1st part and use the 2nd to stabilise things.
  • Second, in Modi 1.0, there have been quite a few hits but some misses too. In the 2nd term, on the back of a solid mandate, Team Modi should play on the front foot with confidence, while at the same time leaving alone deliveries outside the stumps and negotiating short pitched deliveries and bouncers with alacrity. In governance parlance, this means implementing even the not so populist decisions with confidence and not getting muddled in unwanted distractions.
  • Third, please request the economic ministries to come up with a list of things to be done to rev up the economy which is stuttering. Divide this list into 3.
    • 1 – Low hanging fruits which don’t need legislative backing
    • 2 – Which need bills to be amended, passed in the parliament
    • 3 – which need the states to take action

Get going on this list systematically. Have a target of 60 days to accomplish everything in the 1st list. This will give a clear message to all stake holders that this government is not the one to rest in its electoral success laurels!

  • Fourth, you are now in Japan and there is a lot we could learn from the Japanese in terms of going about things. One of the things I learnt from working in a Japanese company is “Prioritisation”! As Indians, we tend to focus on 100 things at the same time and spreading ourselves extremely thin. This was one grudge I had on Modi 1.0 which embarked upon so many projects simultaneously like Make in India, Skill India, Stand up India, Digital India, Smart City project, Ujwala programme and so on. If you closely measure the success, it is only the programmes which had focus like Ujwala, Rural electrification, Rural housing that met with success. In Modi 2.0, I would suggest that the Government takes up a maximum of 2 or 3 projects at a time, focus on the delivery with finite timelines and then move on to the next set of 2/3 ideas. This is what Japanese do.
  • Fifth, in India we have been talking of linking outcomes to outlays. But seldom has the same been acted upon. So, in the coming budget presentation on the 5th of July, please do not announce plain outlays but outlays that can be linked to quantifiable  outcomes.
  • Sixth, we usually see that in the budget, there are many outlays which are just carried forward year after year with a % increment or a % cut. For example, since 2013, money from Central Budget has been allocated to Nirbhaya fund to support initiatives towards ensuring women safety. One really doesn’t know how this fund is being utilised and after 5 years what this fund has achieved. This is just one example. In every budget, there are many sundry allocations like this. Please review item-wise outlays in the last 3 budgets,  respective outcomes achieved and allocate outlays in the coming budgets only if they make sense.
  • Seventh, considering the state of the economy, there is a need to mobilise resources to generate income and keep fiscal deficit under check. As Prime Minister Modi has been talking of “Minimum Government and Maximum Governance” one way of mobilising resources is by Government exiting many businesses that are no longer strategic in nature and monetising those assets. In Modi 1.0, in every budget, we had an item called “Proceeds from disinvestment” and this was achieved by making some PSUs like LIC pick up shares from the disinvested PSUs. During NDA-1 under Vajpayee, there was a clear focus on “Real” Disinvestment with a full-fledged ministry and a determined minister like Arun Shourie doggedly pursuing it. UPA did away with this and since then Modi 1.0 included, there has been no serious disinvestment in the country. I suggest that Modi 2.0 take this up seriously. A functional ministry named as “Monetisation of PSU Assets” (since disinvestment is seen as a bad word) should be formed. I also add that the proceeds from this monetisation be parked in a separate account and used for welfare schemes. By this, any criticism of the move can be countered by demonstrating that the proceeds of the same are being used for social welfare. A creative way needs to be found for accounting like this.
  • Eighth, in Modi 1.0, there was a big push towards infrastructure projects like highways and roads which was really commendable. The same should be continued with additional vigour. However, as admitted by Nitin Gadkari the pace of the projects could have been faster but for complex land acquisition issues. This is a big issue even today. In the 1st term, after initial belligerence, the government chickened out of the much needed amendments on the Land Acquisition bill. I remember Modi taking this up with rigour in 2014 basically because all the states identified certain provisions in the existing Land Acquisition bill as impediments for timely closure of infra projects.  Since the states are equal stake holders in this issue, please have discussions with a fresh outlook, strike a consensus and pass the amendments to the bill smoothly in both houses of the parliament. Renaming this as “Land Partnership bill” or something like that instead of the negative sounding Land Acquisition bill will help too to remove the negative connotation around this!
  • Ninth, taxation in India is still complex. GST implementation was a landmark Tax reform. I am sure there is a road map towards further simplifying the same with reduced tax slabs and simplifying procedures. Now, in this term please focus on Direct taxes. I hope that the panel working on overhaul of this will submit their recommendations quickly and your government should adopt the same ASAP. In simple terms, the mantra should be lower tax rates with no or very few genuine exemptions. Some of the exemption clauses we have are weird and defy all logic. For example the current clauses we have for LTA exemptions for salaried. Applicable for 2 years in a block of 4 that being calculated from the year 1986 and so on!!! Someone needs to do a Zero based hard look at all the existing exemptions for personal and corporate taxation and do away with most of them which don’t make sense in this day and age!
  • Tenth and the last one. On the 5th July when you leave your office for the parliament to present the budget, your team will hand over a brand new brown brief case which will have the budget speech. You and your team will pose with that brief case for the cameras and then you will read out the budget speech from the bunch of documents. And here’s what I suggest. Please, please do away with this brief case and the papers. Instead, amble along in style, pose for cameras with your hands “free” and as you rise to present the budget in the parliament hall, download the speech from the ministry’s secure server and project it in a large screen. Doing away with the rambling, long speech that would be just uber cool, while at the same time giving a push towards Prime Minister’s “Digital India” dream!

Pic Courtesy: Livemint

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Jet Airways – Positioning lessons from its crash landing!

On Wednesday last week, as I was queuing up to board an Air India flight to Delhi, I could see the tarmac at the Mumbai airport lined up with idling aircraft of Jet Airways, whose operations was being cut down by the hour. Eventually, by evening the airlines shut down its operations completely, albeit “temporarily” as per the company’s statement. And in a twinge of irony, the last flight was a Jet Connect flight from Amritsar to Delhi that landed in Mumbai in the wee hours of Thursday.  I say “in a twinge of irony” because one of the reasons for the airline to get caught in turbulent weather, was its many experiments in positioning wrongly so, trying to compete with budget/low-cost airlines with Jetlite, Jet Connect and so on, when it hit financial air pockets way back in 2009 and later.

Unlike this generation, people born before the pre-liberalisation took their 1st flights when they started working! So did I. Way back in the early 1990’s for the initial few years, it was all Indian Airlines for work related trips. Though Indian Airlines in that period wasn’t bad, when Jet Airways burst into the scene, post opening of the sky along with other private airlines like East-West, Damania, Modiluft and so on, it brought in a whiff of fresh air. I remember vividly those times. The airports with inadequate infrastructure to handle the explosion of airlines and traffic, by and large resembled railway terminus’s and bus stations with multiple loud announcements of arrivals, departures and boarding calls.  “Chaotic” was an oft-repeated description of airports, then.

Amidst all the initial slew of private players, only Jet survived. It is clear that Naresh Goyal, the original promoter of Jet Airways had mastered the one core competency that mattered to excel in business in India – that is of “managing the environment”! But, I must admit that apart from managing the environment, Goyal could get another aspect of business right. That is of managing customer needs and experience well.

In those initial days, –  I am referring to the mid 90’s, Jet Airways experience was really out of the world,  particularly for frequent flyers. You could tele-check in and get your favourite leg space seats without much of an issue. Upgrade vouchers could actually be used to upgrade to business class even at the airport while checking in. There was a wide variety of meal options apart from just Veg and Non Veg. In fact for breakfast, in Vegetarian, they used to have South Indian and North Indian choices!  Dinners were 3 course meals. Hot and cold towels were provided even to Economy passengers! You could redeem your award tickets without much fuss and disappointment. In the initial few years, one needn’t pay even the taxes for award tickets (That changed pretty soon). With fares almost same as of other airlines, there was no reason unless otherwise the flight was full, to look at alternative airlines! I can say that from a user perspective, it was truly a golden era for Jet Airways!

The golden run for the airline continued in the 1st decade of this century, but with conditions attached. This was when it became a market leader by way of market share and leadership pangs started catching up. But still, due to its superior service and its On-time record, it was business travellers’ first resort.

The advent of low cost or budget airlines in the scene in India somewhere around 2006, must be one watershed moment in the history of Jet Airways. Captain Gopinath, the founder of Air Deccan redefined airline business in India with his no frills, low-cost offering exemplified by R.K.Laxman’s “common man” as the brand mascot. By lowering air fares to the extent of making it cheaper than train fare, Gopinath ushered in a whole set of middle class travellers into flying. In doing so, Gopinath with Air Deccan became of subjects of case studies in B-schools. The whole landscape of air traffic changed so fast in that period that, Air Deccan with its mindless pricing strategy, ended up disrupting itself and few other airlines on the way.

The global recession of 2008 and the cost consciousness that ensued among corporates world over, brought the curtains down on the party of the expensive, premium priced, full service airlines. In India, it meant Jet and Kingfisher who were truly premium, full service airlines at that time. This is where, I feel Jet was caught in the wrong foot. When it started losing market share to low-cost air lines and new entrants like Indigo, Go Air, Spicejet… Jet decided to pursue its own “budget airline” strategy which in my mind was a big mistake. Extending the brand is a trap which many companies fall into, with their eyes wide open.  Here, Jet Airways, hither to a market leader with a full service offering and impeccable service reputation, decided to extend its brand and launch a budget airline called Jetlite and then later Jet Connect. At the outset, it seemed like a smart strategy to prevent losing market share to the newly launched low-cost carriers, that too in those prevalent muted global economic conditions.

In the process, what happened was a systematic dilution of the brand equity of Jet Airways and all it stood for. In the name of cutting costs, service offerings were trimmed. It was no longer a frequent flyer’s delight. Service started falling apart. I started seeing the writing on the wall sometime in 2011/12. You could never get a seat of your choice even when you web checked in early! Choice of food became limited. For a flight taking off at 7.30 pm, instead of dinner, a snack meal was beginning to be served! Even the After mint (post meal mouth freshener) which was served in Jet Airways in the beginning, which became so popular that it was sold in super markets and stores as Jet Mukhwas suddenly disappeared from the in-flight meal. Here, I must add that I have seen many passengers asking for extra sachets of the same and hoarding them to their homes!  Award ticket redemption process now online, became a farce. There were just few seats for award tickets in a flight and you would never get them. If you redeem award tickets for your family, seldom you will get confirmation of the same while you book. Upgrade vouchers became just pieces of paper because upgrades were limited to few fares.

In the midst of all this, Jet’s financial woes only multiplied. A mistimed acquisition of Sahara Airlines only worsened the situation. Few quarters back, realising its original mistake of taking the budget airline route, Jet jettisoned its low-cost brands and decided to stick to just its full service offering. Considering the fact that global economy had revived, I thought that it was a wise move and hoped that Jet will soon be back to its glory!  Well, it did not. The low-cost hangover continued. The pricing was of full service. But the service was of budget airline! Can you imagine as recently as in Feb, on a 5 and a half hour flight from Mumbai to Singapore, there were no personal screens and one had really sleep through to kill time? And my co-passenger who requested for a glass of water got it after reminding the crew for the same at least 3 times! And of late dinner served in Jet Airways resembled more like junk street food! And I can only say that Jet’s frequent flyer programme – Jet Privilege which was once upon a time really world-class, is a pale shadow of its former self! Jet Privilege was such a strong brand that Goyal hived that off as a separate entity and monetised it. Even that infusion didn’t help to improve the user experience, though. Keeping the financial troubles aside, I was of the opinion that Jet was sinking as a brand anyway! And the culprit was its positioning! Was it a full service airline with offerings of a budget airline or was it a budget airline that was overpriced??

What if, had Jet continued to stay the course of a full service airline?

What if, in that period when low-cost airlines were mindlessly cutting prices, had Jet focused on “business value flyers” and on superior service?

What if, had Jet went after bottom line instead of preserving market share in that turbulent economic period?

So many what ifs! As I said, in hindsight, pontification is easy. But this hold lessons for companies for the future. After all, business cycles repeat themselves.

Having said that, singling out Jet is also a tad unfair. Airline business globally is a tough business to wade through. One that requires continuous infusion of Capex and which sucks up huge Opex. Only airlines that have thrived are those protected by state monopolies or those who have got their positioning and cost efficiencies correct. In India, the woes of Airline industry have been compounded by high taxes, fluctuating fuel prices, high interest rates and crony capitalist policies. In the history of Airline Industry, Jet is only the latest to bite the dust. Before, we had East-West, Modiluft, Damania, Air Deccan, Sahara, Kingfisher, Alliance Air and myriad other smaller airlines which all exited the scene in one pretext or the other! And we all know how Air India has managed to pull through while being in ICU for so many years.  And it is also clear that the other airlines are all clutching at straws and managing to stay afloat. That must really beg some critical policy related questions among the policy makers in India. While on the one hand trying to expand air travel to smaller towns in India, is the current Aviation policy regime really business friendly?

Seeing an Indian brand, which was once upon a time close to world-class fold up, is really unfortunate. Hope wisdom and luck prevails and we soon see Jet get its Jetwings of yore!

Image courtesy: https://www.thenational.ae

Daag Acche Nahin Hain!

Just as I was checking my Twitter feed this Sunday morning, I saw the #Surfexcel trending. Initially I ignored attributing it to some sponsored marketing campaign. But when I saw a whole bunch of individuals from the Right to the Left tweeting on the same, I decided to check it out. There, I could see other hashtags calling for a boycott of Unilever products and so on. The reason for the furore being, this ad (watch here) which Hindustan Unilever (HUL) has made for Surf Excel for the upcoming Holi. I watched the ad and I thought it was a brilliant ad though the theme has got a bit repetitive particularly with HUL these days!

People calling for a boycott of Surf Excel and Unilever products though, had a different take. They questioned the need for the company to pick up on a Hindu festival (Holi) to push their product. Few also quizzed if Unilever would do an ad around any Muslim festival. There were also many other tweets with images of Muslim festivals photo shopped with Surf Excel and its now famous tag line – ‘Daag Acche Hain’!  Notwithstanding all this, the ad achieved the purpose of creating a buzz and finally going viral.

This comes closely in the heels of another ad from the same company created during the Kumbh Mela! This ad (Watch here) for their Brooke Bond Red label Tea literally kicked up a storm in the social media tea-cup! . Though extremely well made, it is clear from the ad that the product and its attributes were secondary while the primary objective was just to ride the buzz around the Kumbh. While the commercial went viral on many WhatsApp groups as a great ad, on Twitter though, folks derided the company HUL for hurting the religious sentiments of Hindus. The supers that appeared at the end of the ad said, “Kumbh Mela is the largest religious gathering in the world. At this holy gathering, many elderly are abandoned by their families”!

I am not sure what kind of research went behind, to make a statement like this.  Nevertheless, the ad, I repeat very well made and executed, came across as a botched attempt where just to bring in the “Kumbh” story, you build a very touchy and probably insensitive narrative. I would rather prefer the approach by Fevicol in a similar context for the Kumbh where, they weaved a positive story (watch the ad here) around the event while plugging the attributes of the product effectively.  In the Red label ad, the product got thrust upon in the story at the end. With the massive uproar about this ad in social media, I am told that the company decided to take down the same. However, it didn’t stop it from going viral on social media platforms where it got trolled heavily.

These days, companies when they brief the agency for their commercials, I think must be outlining their 1st objective as “It should go viral”! As I had written in my earlier posts, “Stir up to sell” is an old ploy in marketing and advertising.  Achieving the objective of getting ad go viral is of late falling into very predictable tropes like Hindu – Muslim unity sentiment, Indo – Pak emotion and so on.

The larger point I am trying to put forward though, is different.  Few days back, I received as a forward on WhatsApp a clip which, I then gathered was a trailer for an upcoming web series titled ‘Metro Park’. Watch it here. I watched it, had a hearty laugh and forwarded the same to few other WhatsApp groups as is the wont these days. Little did I realise that, even for what I perceived as a routine comedy clip, I would receive some critique questioning, if the makers would dare to make fun of any other religion’s practices in a similar way!

A few years back, the Surf Excel Ad and the Red Label Kumbh ad would have just got beamed across homes through your television sets and the agencies would have just walked away with awards galore. But today, there is no such getting away easily. Though personally I thought that the Surf Excel Holi Ad is a brilliant one which weaves in the product attributes into the Holi story, while at the same time talking of Hindu-Muslim brotherhood… the extreme reactions against the ad actually conveys something else. That of bringing to the fore the fault lines that exist/existed all along in our society.

First of all, the repeated emergence of these themes in ads is itself an aberration in my view. A Unilever company in another country say in the US or in Europe I feel, will not take pains to come up with an ad promoting Hindu-Muslim unity in the guise of promoting their product. After over 70 years of Independence and declaring ourselves as a secular nation, if we have to keep clutching at straws (read as films and TV Commercials) to promote self-belief as a secular nation, something has gone wrong somewhere. Secondly, the extreme reactions a TV commercial promoting harmony evokes among us, also is worrisome.  While social media playing the role of a watch dog is good, more often than not, it is barking up the wrong tree.

‘Daag Acche Hain’ (Stains are good) may be a good tag line for a detergent.  However, “Communal”, “Bigoted” as tags are stains. And as a country we could do without such stains. Kyunki woh Daag acche nahin hain!

140 Years of a habit called “The Hindu”!

On the 20th of September, the very popular newspaper from the South – The Hindu completed 140 years since its first issue! In these “cash out and exit” times, one cannot but acknowledge and revere the newspaper for 140 years of sustenance and survival. For those from South India in general and Tamil Nadu in particular and for those who were born in the pre-liberalisation era, The Hindu is not just a newspaper but a habit!

I presently live in Mumbai and I don’t read The Hindu daily these days and my Hindu reading is limited to when I travel to Tamil Nadu. On and off, I do get to read some interesting articles from The Hindu which land in one’s social media timelines!  This week, my memories flash back to my growing up days when reading The Hindu daily was a karma one performed religiously.

I probably started reading The Hindu newspaper when I was in class 2 or 3. Initially it was just the last page which was the Sports section where one would catch up on the previous day’s action mainly of Cricket and later Tennis! I have vivid memories of writer Rajan Bala’s lucid writing on some of the test matches accompanied by some fantastic action pictures from the cricket field.  Once Rajan Bala moved on from The Hindu, the cricket column was taken over by R.Mohan. Both were extremely knowledgeable of the game and with their command over the Queen’s language, brought the nuances of the game in front of our eyes in the pre-TV era. The following day in the school, we used to discuss not just the game but also the style of writing and the language used. Such was the impact of the writing on us!

Gradually, we graduated from the last page sports columns to the first page political news and also the Sunday supplements. The Hindu those days had an impeccable reputation for being factual and accurate in News reporting. So much so, the joke those days was that even if a murder happens in broad day light right in front of its office at the Mount Road in Chennai and their reporters saw it with his/her own eyes, the news will get published only after the police FIR was filed and police confirmed that it was indeed a murder!

For many in Tamil Nadu, The Hindu was the teacher for the English language! The newspaper was seen as an ultimate authority on the language. One could hardly find a mistake in the spelling or the grammar those days. These days it is no more the case, I’m told. ‘Know your English’ – a weekly column which used to appear in the newspaper was extremely popular and as kids we used to read the same with immense interest and curiosity to discover unknown aspects of English!  If today, I am in a position to write this blog in half decent English, some credit certainly goes to The Hindu!

After being in the habit of reading The Hindu, whenever I used to travel outside Tamil Nadu and got to read other English newspapers, the difference used to be glaring! One, The Hindu those days was in the forefront of adopting technology, though from a very conservative and traditional ownership background. So the typesetting and page layoutting were top class. You will never find an article in the first page with “Continued in Page ….” line. I see this even today in papers like The Indian Express! The reproduction of photographs even in the B&W era was again of highest quality. Talking of adoption of technology, I clearly remember that The Hindu was the 1st to use “facsimile” technology to transmit and receive pictures from outside when reporting events outside of Chennai. Those pictures used to carry a line (received through facsimile technology!). That fax as a technology became very common place later is a different aspect altogether. When The Hindu adopted it, it was a pioneering effort.

As far as I remember, political reporting of The Hindu used to be pro-establishment. It never used to taken an antagonistic line. But, I reckon that this changed when N.Ram took over as the Editor. Ram as an individual is known to be unapologetically left leaned and since him taking over the reins, one can clearly say that the paper ceased to be neutral.

It was under Ram’s leadership that The Hindu broke one of the biggest corruption story of the country namely the “Bofors scandal” which broke the back of the Rajiv Gandhi government. Any pretensions of The Hindu being pro-establishment ceased after that. Somehow, for reasons not very clear, The Hindu didn’t pursue the Bofors story to its logical conclusion. In fact, journalist Chitra Subramaniam who was the architect of that story had to continue her expose in the Indian Express later!

When I moved to Bombay in the late 80’s, no filter coffee and not able to read the The Hindu every morning, meant serious withdrawal symptoms! The Hindu used to be available only with select newspaper vendors that too in select suburbs like Matunga! The day’s paper used to be available only by 4 pm. Initially for a few Sundays going to Matunga in the evening to have filter coffee and pick up the Sunday Edition of The Hindu was a routine that I did not miss. Slowly, one got weaned over this habit and started getting used to The Times Of India albeit very, very reluctantly!

Today, when I go to Tamil Nadu and pick up a copy of The Hindu to read, I do see it as a pale shadow of its former self! The language is no more engaging and the political reporting has clearly moved from being neutral to be clearly biased. And I notice that this is what many of my folks also felt.  Even those who were very loyal to The Hindu those days, talk of it with a tinge of irony!

Probably this is a sign of the times where not just The Hindu, but media in general have lost their moral compass and have started to pursue an agenda. Even amidst this, I do feel that The Hindu commands a sense of respectability among its peers. With Times of India invading into the South, The Hindu is no longer the dominant newspaper it used to be till the beginning of this decade. Still in these days of 140 characters of Twitter journalism, for The Hindu to chug along for 140 years, is no mean achievement. To the habit called The Hindu, here’s wishing another 140 years of a re-engineered future!

Postscript: While on the newspaper reading habit, please do read my humorous take –‘Paper Vandhaacha?’ (Read here) on how the newspaper is intertwined with the lives of a Tambrahm mama!

Pic Courtesy: The Indian Express!

One upon a time, “the Nation wanted to know”!

The year was 2007. When in my erstwhile company we decided to go for a brand campaign on TV for the 1st time, being in the business of business and enterprise products, we had English News and Business channels in mind. Our original idea was to spend much of the budget on NDTV 24*7, then an established leader in the category and some money on CNN-IBN, a challenger. Our creative agency and its media buying arm strongly suggested to add to the media mix Times Now, an upstart which had gone on air a year ago in 2006. I was hesitant and my 1st question was “Who watched Times Now?” I was told that Times Now with its firebrand anchor and All in All Arnab Goswami had the fastest growing viewership. Over and above that were willing to give an excellent deal. I gave in and we decided to put some money on Times Now as well for the campaign. Till then I never used to watch Times Now and was basically an avid NDTV and at times CNN-IBN watcher. To catch up with the campaign on Times Now during prime time, I started watching Times Now on and off in end 2007, mainly due to work compulsion!

For most Indians though, their tryst with Arnab started probably a year later in November 2008 when the dastardly terrorist attack on Mumbai happened. With rival channels beaming the entire counter operation live much to the exasperation of those carrying out the operation, it was Indian News Channels’ worst face palm moment in history. Being head quartered in Mumbai unlike other English channels which beamed from NCR, Times Now could deploy the maximum resources during the 3 day non-stop coverage of the attacks on Mumbai and garner the most eye balls of eager citizens wanting to know what was going on. For Arnab and Times Now, the 26/11 Mumbai attacks did what the 1991 Gulf war did for CNN!

I reckon that during this period, Times Now  became a serious player on prime time and in fact started boasting of TRPs ahead of NDTV 24*7 and CNN-IBN. There was no looking back since. The heady days of UPA-II offered much opportunity for Arnab to take the Government to the cleaners with scam after scam. The CWG scam, the 2G scam, the mining scam and the “Anna movement” all came in handy for Arnab. From here on, it is my belief that he ceased to be a News anchor or a journalist and started morphing into being the very righteous and highly moralistic “vigilante” leader! And the Nation lapped him up!

At 9.00 pm every night, Arnab was no more reading news. He was not even anchoring a news show. He was actually giving his “Address to the Nation” to gullible Indians for few minutes followed by debates where participants were literally “pigeon holed” and harangued. Those not on his side were interrupted, insulted and were handed over sermons. He became the advocate, prosecutor and the judge every night.  But in all this, he was doing well for himself. Arnab became a brand. In fact, became larger than the channel itself. Times Now became an undisputed leader in its category. For the middle class English news watching public, he was a hero who could question and tear apart a politician on live TV without fear. They kept goading him with more TRPs and he became unstoppable. So much so, in 2014 during the election season, when Rahul Gandhi wanted to give an interview and the Congress party decided to go with NDTV and Barkha Dutt, Arnab challenged them with facts and figures and ensured that the only interview Rahul gave was “Frankly speaking with Arnab”. And we all know how much that interview contributed to the Rahul folklore on social media! In the same token, in the run up to the election, the only English Channel to which Narendra Modi gave an interview was Times Now for Arnab!

While being on top of the game and world, Arnab decided to leave Times Now and he started his own channel named Republic TV which went on air in May 2017.  Here again, he has continued his vigilante model – only that his vigilantism is being applied only against the opposition party! Republic TV continues to rake up scams supposedly pertaining to the UPA era and at times even of the Rajiv Gandhi era! The Bofors story keeps popping up, not surprising as the original Bofors story architect, Chitra Subramaniam is associated with the channel. With the channel being funded mainly by Rajeev Chandrasekhar who is now been given a Rajya Sabha ticket by the ruling BJP, Republic TV’s loyalty is no more a secret. It never was. But now even that translucent mask is off!

Arnab is today a metaphor for the aggressive, noisy, angry, rooting for nationalism type of journalism. And the success of Arnab has led to a spawning of Arnab Goswami wannabes in channel after channel! From Rahul Shivshankar to Navika Kumar to Bhupendra Chaubey to Rahul Kanwal to Gaurav Sawant to Anand Narasimhan we have a parade of angry men and women masquerading as news anchors in every channel!  And night after night one can see them howling at guests who for whatever reason choose to appear on their shows!

Similarly the success of Times Now and now the apparent popularity of Republic TV within a short span has led to every channel following the shouting match formula on prime time! Among channels, with the exception of NDTV 24*7 which has chosen to stay away from debates on prime time, there is hardly any product differentiation! In fact, Times Now seems very much a clone of RepublicTV in almost all aspects – the stories of the day, the editorial line they take, the boxed debates, the profile of guests, the doorstepping of reporters, the Arnab like anchors in Rahul Shivshankar (an Arnab protégé) and Navika Kumar and even in the harebrained hashtags they come up with every evening! No wonder Arun Shourie, known for his penchant for one liners, came up with the sobriquet of “North Korean channels” for both!

9 pm prime time news has been my every night fixation for years. Not anymore. I have stopped watching Republic TV.  Rarely do I watch Times Now. And more importantly, I just give a fleeting glance for not more than 5 minutes of even the other channels.  Results from unscientific polls conducted with my folks over WhatsApp reveal similar trends. That of die hard news consumers shunning Arnab and his ilk in particular and English news channels in general.  Now this trend is not reflecting on the viewership data at least for now. But then, methodology adopted for opinion polls and collecting viewership data in India are as unscientific as they can get and hence I treat them with the same contempt.

News today is more noise. And hence it is nothing but entertainment.  Soon news channels will fight for being classified under General Entertainment category. If a finger has to be pointed on one person for this degeneration of the News TV genre in India, it should be on Arnab Goswami. There was a time when the entire “Nation wanted to know” from Arnab. Every night. Not anymore.

Postscript:  Malayalis tend to pronounce “News Anchor” as “News Anger”! Time for the nation to follow Mallus on this one!!!

Nano – Tata’s and India’s miss!

Tucked in between the noisy and newsy headlines in India in the last week around Love Jihad, Rahul Gandhi’s religion, Ivanka Trump’s costumes in Hyderabad and other inanities, was a poignant news bit about the Nano car. Poignant, because it said that dealers have stopped placing new orders for the car and in the month of October, just a measly number of 57 cars were shipped. And this led to political jibes from Rahul Gandhi that the PM’s pet ‘Make in India’ project just died. He also tweeted that Rs. 33,000 crore of tax payer’s money and that too of Gujaratis’ turned into ash. Coming in the midst of a vitriolic election campaign in Gujarat, one can excuse politicians for spicing up their speeches without looking at the larger picture. The point is taking potshots at Nano’s failure is taking potshots at India. Failure of Nano is not just a failure of Ratan Tata or the Tatas but a blot on India.

Cut to year 2008, when Nano was first launched, it was the biggest story of India Inc. ever. When Ratan Tata initially announced that Tata Motors is working on a Rs. 1 lac (US$2500) car, it was met with excitement and skepticism in equal measure. So, finally when Tata did launch the car with a price tag of Rs. 1 lac, the world did look up and notice. Finally, here was a car which was conceived in India, designed and developed by Indians with indigenous technology and manufactured in India that broke all cost frontiers unimaginable by car manufacturers till then. Overnight, Ratan Tata was the toast of the nation.

Around the 2008-10 time period, whenever I met any foreigner from Japanese to Americans, our conversations invariably touched upon the Nano car and how this was pulled off. And those visiting India always wanted to see a Nano car on the road and take a picture in front of one. Selfies didn’t exist then! The Chairman of a well- known Indian group who drove a Camry, proudly told me that he was the first among to book a Nano in Mumbai and to get delivery as well. At that time, Nano was yet to be seen in big numbers in Mumbai. But on a visit to Colombo in 2011, Nano had already captured the “Budget Taxi” space there. Media was full of interviews of not just Ratan Tata but also of the R&D engineers who had designed the Nano.  Nano’s launch was the culmination of a series of stories in which India Inc. was part of then. It was believed that Nano would be a live case study for C.K. Prahalad’s “Fortune at the bottom of the pyramid” theory!

That was not be and the excitement around Nano soon started tapering. Unfortunate incidents of the Nano going up on flames on the road didn’t help at all. For a product which was expected to expand the car market by 65% or so, the sales was plateauing around 70,000 Units a year for 2-3 years before nose diving to what is a few hundred cars this year. The failure of the Nano car must be one of the most analyzed and discussed case study in B- Schools, I reckon. Most of what I have been reading, attribute its failure to the “positioning” of the car as the world’s cheapest car in the beginning.  The Quality failures adding “fuel to the fire”. Attempts to re-position the car as a “Cool Urban car”,… didn’t help either. I have a different view on the reasons for the failure of the Nano car. But will keep that for another blog.

In business, they say there is no room for emotions and decisions need to be taken based on just commercial considerations. The ousted Chairman of the Tata Group, Cyrus Mistry recently said that during his time it was decided to pull the plug on Nano as it didn’t make commercial sense, after attempts to revive the project failed.  As of now it hasn’t happened. The current Chairman Chandrasekhar has been more considerate, probably towing Ratan Tata’s emotional line. He has said that there is a need to take a more “holistic” view on the Nano project. And I tend to agree.

Nano was not a Tata story. It was and is an India story. Ergo, failure of Nano in a way is an indictment on the capability and potential of Indians. And as somebody said, “Nano was not an Idea. It was an ideology!” Ideas can fail. Ideologies need to linger! The failure of Nano soon opened up to “We told you so” and how can Indians pull it off” jibes. For a 3rd largest economy (GDP-PPP) in the world, India is yet to throw up globally renowned home ground brands. So far, it’s been the soft power brands like Ayurveda, Yoga, IIT and the likes which have been torch bearers for India globally. Let’s keep aside the Software brands like Infosys, Wipro,… aside for the time being. In one of my very early blogs (read here) on different styles of management, I had opined that for the world to recognise, acknowledge and adopt the “Indian style of Management”, we need stories of successful Indian companies and brands. Just like how the world adopted the American way or Japanese style when their companies were successful. And that opens the door for Indian companies, Indian products and we Indians in the global arena. Nano was uniquely positioned to be the 1st homegrown successful Indian product brand. There was an opportunity for India Inc. to have “arrived” in style. Not just that. Success of the Nano would have led to similar pushing of cost and design frontiers by other Indian companies in many other product categories. It would have opened the floodgates for Indian CEOs to apply the “frugal innovation” concept in other products. Hence my fervent hope that Nano should succeed.

So, when it failed as it has now, it has pushed back the India Inc. story by few years till we stumble upon the next Big Idea. In the meantime, Nano I believe, is slated to make a comeback in an electric avatar.  Will this avatar help Nano to claim the position of “the common man’s car” in Indian market that Ratan Tata originally envisioned 9 years ago? The world in no longer watching it with the same excitement of 2008. Away from the arc lights, the original billion dollar opportunity still beckons!

A quote alluded to Ratan Tata says, “I don’t believe in taking right decisions. I take decisions and make them right!” Nano might have been a glaring exception to this. For Ratan Tata’s sake, Nano-II should set the record straight. For India’s sake too.

A BMW formula for Indigo!!!

Earlier this week, a video clip of 2 staff members of Indigo Airlines manhandling a hapless passenger on the tarmac made news headlines and occupied Prime time news in India. As expected, the clip also went mega viral on social media quickly. Since then, there has been no end to various jokes and memes, all at the expense of Indigo Airlines.  Even the usually reticent Air India joined the party with their ads trolling Indigo for their high “handedness”! An ad on behalf of Jet Airways floated too which later was disowned by Jet Airways themselves as fake. In short, it was Indigo’s unfortunate “United” moment!

The response of Indigo to this incident which apparently happened in the mid of October seemed bewildering. They had sacked the employee who had shot the incident and probably released to the media. The media portrayed this as Indigo being vindictive of a whistle-blower! To be fair, they tendered a public apology to the wronged passenger. And submitted a detailed letter to the Minister of Civil Aviation giving their side of the story. The letter indicated the reasons as to why the two employees who were involved in the manhandling incident were let off with warning while the so called whistle-blower was sacked.  However, by this time the damage had already been done!  Whether this incident and the bad mouthing that followed will make passengers re-think about flying with Indigo is a moot question.  Flyers being fare conscious may still fly Indigo if their fares are lower than others.  But, everything being same, one may tend to tick another airline at least in the short run. So, the pressure will be on Indigo to keep their prices down all the time particularly with the year-end peak holiday season coming up.

I have been a fan of Indigo’s marketing for a while now. Their marketing messages have been crisp, humourous and quite creative. For a company which had a well-crafted, clean image thus far, this incident has lent a heavy blow.  Having said that, this can happen to any professionally run organization in any line of business. Companies, particularly in the service delivery business, do spend man hours in imparting training to employees to develop their soft skills. Still, a bad product or a bad mood or a moment of indiscretion of an employee on a wrong day can spoil the carefully cultivated image of a company.  Here’s where companies need to have a clearly laid out “Recovery” strategy whereby you not just contain the damage but also look to benefit from a bad episode.  A Recovery model which follows what I call as the “BMW” formula. Nothing to do with the brand BMW but meaning “Be repentant, Make Amends quickly and Wow the customer!

Let me narrate a recent example of my good friend Adinarayanan’s experience with ID Fresh Foods, a company which is a case study in itself for a successful startup in India these days. Adi purchased a packet of ID Parota and to his surprise found only 4 pieces instead of 5 as mentioned in the packaging.  He reported this to the company thro e-mail on the customer care id mentioned in the packaging. Within 2 hours, he got a response over e-mail, where they acknowledged the problem, apologized for it and assured resolution of the same.  And within a day or two, he indeed received a fresh packet of Parotas. The story didn’t end there. Along with this, he also received a packet each of other products of Id Foods!!!  So, my friend more than being just satisfied with the company’s gesture of making good his complaint, was now delighted. He wrote about this in a detailed post on Facebook (by which I came to know) which must have been seen my many of his friends as well!  Since he tagged ID Foods in this post, the post would have reached more than just his FB friends!  ID Foods also ended up doing a small publicity for their other SKUs by this gesture. Many birds with one stone! Not to mention of this narration in this blog post!

If you analyse this, ID foods followed the “BMW” model quite diligently. They responded with an apology, didn’t try to be defensive and hence were “Being repentant”. By sending a fresh product and that too within 2 days, they quickly Made amends. And finally by sending a packet of their other products, they Wowed the once disgruntled customer.

Going back to the Indigo episode, Indigo stopped with Being repentant. They didn’t attempt to Make Amends, forget trying to Wow the customer. As soon as the company learnt of this episode, its President Mr. Aditya Ghosh admittedly called and apologised to the passenger. Great gesture of Being Repentant. Now imagine if they had sent the staff who manhandled along with a senior manager to the passenger’s residence with a bouquet of flowers and a Sorry card. And for safety sake, got this video graphed. And imagine further what would have happened if the irate passenger gets a free travel voucher from Indigo the next day delivered at his residence?

Following the whole BMW Recovery formula would have costed less than Rs.5000 to Indigo but would have earned them an elated customer who probably would talk about what the Airline did later rather than the original manhandling.  Now in spite of all this, the original clip would have still been leaked to the media and would have still created havoc. But having followed the BMW formula religiously, I believe the damage would have been much less. The company in response can also use the same social media to release the clip of their visit to the passenger’s house to mollify him.

Having a well laid out BMW formula where the employees are empowered to take suitable calls I believe, is critical to handle unfortunate bad experiences of customers.  In this whole Indigo episode, lies another important lesson for companies – “To have satisfied customers, have satisfied employees first.”

Postscript: The topic of “having a recovery strategy” is also one which usually falls under “What they still don’t teach you in Harvard (any) Business School!” However, I clearly remember our marketing professor Mr. Tarun Gupta painstakingly talking about this while covering ‘Services Marketing” which till this day echoes in my mind. TG who is revered as a Marketing Guru in Pharma circles with a trail blazing career in companies like Glaxo, Ranbaxy,… passed away on the 31st October at the age of 78. This post is my humble tribute to him. May his soul Rest in Peace.

Pic Courtesy: Amul