Our Tryst with GST* – * Conditions apply!!!

GST – The Good and Simple Tax, as our acronym lover PM touted during the launch on 30th June is finally a reality after almost 11 years of intense labour. This along with FDI in retail must count among the most awaited reforms in India by India observers.

So, the advent of a single tax which subsumes, at last count, some 17 different taxes and myriad cesses certainly must count as the single largest Tax reform undertaken in India. Not to forget the application of tax only on value added in the chain. Along with this simplification, the fact that goods from one state can pass thro different states without wait, harassment and accompanying corruption portend a new beginning for trade in our country. In the pre-GST era, logistics and warehousing strategy of companies have been dictated by tax compliance rather than supply chain considerations. In the sense, the number of warehouses and their size would be driven by billing point concerns rather than geographical spread of demand. In the GST era, warehousing will depend on supply and demand equations and not taxation points. And hence like in most developed countries, companies will get to run larger, integrated and fewer of warehouses. Development of more efficient logistics hubs, warehouse consolidation and ensuing FDI will become a reality soon. This is a new dawn for retail, supply chain and logistics industry.

So with all the seemingly obvious benefits of the GST regime, why is it that there is still some cynicism and negativity from different quarters about the move? Why is P. Chidambaram once the prime mover of GST when UPA was in power, cautioning all of us to “Get Set for Turbulence”? The GST in the current form is nowhere close to the one which was originally conceived. Rolling stones probably gather no moss. But a rolling GST gathered whole lot of moss on its way from the wisdom of empowered committees to standing committees to GST council. The current version of GST is a product of what I call “co-operative federal bullying”. The result is instead of the One Nation, One Market, One Tax premise, what we have is One Nation, One Market, One Tax name, 3 Sub Tax names, Multiple Rates, Few Exceptions, Some flexibilities and with an *. * – Conditions apply.

Being part of the GST council, the states in their own wisdom, ensured that we as a country don’t get away with a simplistic tax which may throw many Chartered Accountants out of jobs. However, I understand that without having a set of different GST rates (in some cases different rates for the same category as per user segments) or without excluding items like Petrol, Alcohol, Real estate,.. consensus could never have been built in getting GST off the ground. UPA’s failure to make GST a reality during their regime stems from this. So the choice before the centre was to accept what the states demand and bring about a not so ideal GST or wait endlessly for a few more years may be decades before some major economic crisis forces all concerned to come to an agreement on the ideal GST. From that point of view I agree with the stand taken by the Govt. to bring in GST in its present form with its shortcomings, with a hope of ringing in the changes in the coming years. Kudos are in order hence.

The Congress party which at every opportunity reminded us that the seeds for GST in India were sown by the UPA, however, chose to be petulance personified and boycotted the GST launch. While rubbishing the GST in its present form its main “anGST” against GST was that it is being rushed thro and should be delayed by 3 months till September. We all in India know that in our country whatever may be the preparatory time available, things get accomplished at the last minute. If we get more time, we stretch our deadlines accordingly. That if we have more time, we will be more prepared and can do trial runs before actual roll out,.. exists only in theory. Don’t we see in our Indian weddings, folks tying up some loose ends literally till the baraat arrives and continue to do so as the wedding is in progress?  Finally when the wedding gets over, its smiles all over.  So even after the GST roll out, there will be glitches, teething problems and surprises which I am sure we will find ways and means of getting over. Pushing back by another 3 months is not going to make things any different.

It must be commended that this Govt. stuck to the date of July 1. It would have been very easy for the PM and the Govt. to throw in the towel and put off the launch by a few months. But then, there are other implications. Come Oct. it is the peak festival and hence business season in India. Does It help if the roll out happens when India is in the midst of its biggest Annual economic cycle? Will it help if GST is launched in Jan. in the final quarter of the fiscal year???

The ruling party, the BJP counts traders as its important traditional support base for the party. That the party still decided to go ahead with the tax reform which professes maximum disruptions for this group is a significantly courageous move.  In India economic reforms have always been carried out under duress; when push comes to shove. The heralding of GST must be the 1st major economic reform brought in when not under any kind of stress but just to ease up things for the future. This certainly conjures up the arrival of Acche Din for our country.

Still our penchant for complicating things comes to the fore here as well.  Though the GST collections have to be shared between the state and the centre, could it not have been done at the back using technology rather than coming up with 3 variants like SGST, CGST and IGST??? Does the Anti-profiteering clause make sense? Will not competitive economics eventually drive pricing??

GST is indeed a Good and Simple Tax. So there is nothing like a good or better time to introduce the same. But, we should not forget that this is India and we are Indians. So, conditions apply.

The Passport called English Medium!!!

Hindi Medium for the uninitiated is a Hindi film that hit the screens last week sans the trappings of the typical Bollywood fare but which holds a mirror to the society with a strong social message. Without any of the leading “Star Khans” but with just Irfan Khan as the lead star, I am not sure how far the film will reach eventually. After 3 Idiots if there was one Hindi film which leaves you thinking as you left the cinema hall about your kid’s education this must be it. In the film, the lead couple go to unimaginable lengths just to secure admission in one of the Top English medium schools in the city.  Because in the lines of the mother, “If the child goes to a Govt. school, she can’t learn anything. If anybody talks to her in English, she will not be able to fit in the society. Hence she will be lonely and will get depressed.”  The extremes the couple stretch themselves to secure that admission in a top English medium school like even trying to transform themselves to poor people to take advantage of BPL quota as per RTE act may sound preposterous.  But the message – that “English medium” is a mandatory passport for one’s flight to success in life is not lost on anyone.

Not just this one, but there were other films like Chetan Bhagat’s novel turned film – One Half Girlfriend and Sridevi’s super hit – English Vinglish dwelling on the theme of the need to master English to get recognized/get ahead in life. Ironically this is not some typical Bollywood fantasy but stark reality of India being mirrored in films.  At workplaces today, one’s command over spoken English is considered essential to rise up the corporate elevator whether you like it or not. There are very few careers I can think of today where one can still succeed without mastering the English language. Probably politics (where being oblivious to the English language can become your calling card) or some creative fields could be those. Otherwise even in medical field the reality is, you feel comfortable of a surgeon’s ability if he is able to explain the diagnosis and treatment course of your patient in eloquent English!!! Narayana Murthy of Infosys once controversially observed in the context of IITs that with Indian politicians “rooting against English”, the task of getting good English speaking students at IITs gets more difficult and that affected their quality .  He was being practical and honest. In urban India the caste system based on Manuvaad is gradually on the wane. But in its place there is a new caste system based on “Medium of Instruction” – English medium being forward caste and any other being backward!!!

However this is not the case in many other successful countries. In Germany you don’t need to master English to head an organization. In Japan, though knowledge of English is an asset particularly in an Export driven economy like theirs, lack of flair in English has never been a liability.  Same is the case with China.  It’s another matter that they probably now realise that if they had imbibed the English language they could have ruled the global commerce not just in Mfg. but even in services!

But then India is not a homogenous state with one culture, one lingo like Japan or Germany. We are “United States of India” where our culture, language, food habits,…,.. keep changing every 500 kms. We sort of got stuck in the middle where we couldn’t have Hindi or for that matter any other Indian language as a universal Pan Indian language due to our cultural diversity. At the same time English being a language imported due to the colonial rule couldn’t achieve the universal reach across the board. Result – we have a language divide. If we have to get out of this situation, it’s too late or virtually impossible to go back to a Japan or Germany universal Indian language model.  So it looks like adopting English language universally in India is only the practical option left with us to go forward from here.

“Universally” is the key. It was the very articulate Shashi Tharoor who once said, “Denial of opportunity to learn English to our children would be tantamount to destroying their future” and I agree. It’s unanimously accepted that India’s command over English has been one of the key attributes to our success in Software business worldwide. So why not we build on our strengths and leverage the same? That is certainly not by keeping English a privilege of few and sowing the seeds for another conflict. Instead a way forward could be to make ‘All” schools in India – English medium schools and phase in English as the universal medium of instruction from a particular year in the very near future. This is not to shortchange our own native languages which still needs to be taught in the same schools but need not be the “Medium of instruction”. We could expect politics to play and outrage factories running on full capacities over this move.  But then have we seen wards of politicians who get educated from Non English medium schools?  By the way in our neighbouring Pakistan in 2013, I heard that Khyber Pakhtunkhwa province took a call to switch over from Urdu to English medium gradually in a period of four to five years!!! This could be a significant reform in the field of education that would ensure English not just being a passport to economic, social and educational advancement universally but a ‘Visa on Arrival” for growth, the likes of Donald Trump notwithstanding!!

This reform may not be “the” only cure for all the ills in our education system but would be a good place to start.

Postscript: While on this, just after the ascent of Mr. Chandrasekharan as the Tata supremo, a picture of him and his 2 brothers has been doing the WhatsApp rounds. It talks of the fact that the 3 brothers are actually are from Tamil medium schools from a village in Tamil Nadu and that today they were head honchos. The message being, one doesn’t need to be necessarily from English medium schools to get to the top. Well, not sure even if Natarajan Chandrasekharan will accept that premise today and forward that to his WhatsApp groups!!!

2016, History & Hope!!!

This time of the year, the last week is usually a “feel good” week. There is celebratory mood around thanks to Christmas, holiday outings to look forward to and with a fresh New year coming up – a feeling of Hope. Had the year gone well, one is anyway happy and hopes that the good days continue into the New Year. If it had not, you want to quickly move on and again hope that the New Year brings some cheer. Was it Ghalib who said – ‘Umeed par Duniya Kayam hai…uska saath na chodo’ (Hope sustains this world, don’t lose its company!) So it is with fervent hope for Achhe Din (oops not the political type) that one usually steps into the New Year – year after year!

While there are 12 months, 52 weeks and 365 days to a year, when history is written a year is usually defined by what happened in a week or probably in a day.  And seldom have we realised when an event unfolds that it is history in the making. That is left to the wisdom of hindsight. For example, we now know that 1991 has been an important year for India. For opening up of the economy. For the end of license Raj. For unshackling the animal spirits. Yet, when the Industrial policy announcement was made in July 1991 by the Government, they were acknowledged by and large only as important “course corrections” considering the state of the economy by the media.  Then, they were not labeled historic.  The “Reforms” were always treated with suspicion and even in the Congress party there were many a doubting Thomases who derided the then Prime Minister Narasimha Rao and the Finance Minister Manmohan Singh. But today the rearview mirror displays that the reforms of 1991 have indeed left a positive trail in our country.

History is a great leveler. And at times more charitable than the present. So you find more eulogies on Narasimha Rao as a visionary, as a modern Day Chanakya,..,..  today than there were when he was alive. Or even when he passed away in the same month around the same date in 2004. Hence I was not surprised when Manmohan Singh in his last press conference as a Prime Minister famously said – “History will be kinder to me than the contemporary media!!!”

So likewise when history is written I do believe that 2016 will have a significant place in it for the one event which happened on the 8th of November – The Demonetisation of high value currency notes! We will know how the after effects of this move play out in the next few quarters. As I mentioned we live in eternal hope. So the hope is that we get over the pain caused by this move sooner than later and the economy is back in track by March/April.

But apart from this, if there is one thing for which this move will be remembered for in history, it will be for how Demonetisation changed some steadfast habits of Indians. As author Shankkar Aiyyar famously said in his book – Accidental India that almost all of India’s turning points like the White revolution, Liberalisation,…) were not the result of foresight or careful planning but were rather the accidental consequences of major crises that had to be resolved at any cost.  Similarly the cash shortage situation resulting out of the Demonetisation program in the initial few days was panning out to be a major crisis. (Some would say it is still, though I beg to differ looking at how ground situation has changed for the better) This made the buyers and more importantly the sellers think of carrying on with their businesses with no or less cash.

Today in a traditional market in Mumbai – the usual signboard which said “Credit Card and other cards not accepted” – has the word “Not” blackened out! Paan Walas sporting “PayTM Accepted here” is no more just a subject of WhatsApp jeers but a reality. Restaurants and other outlets no more scorn at you if you flash your credit card for small payments. At multiplexes, there was are big lines during the interval not for buying popcorn tubs, but for swiping cards in one solitary POS machine! Personally speaking I am left with more cash in hand than ever in the past few years! The expenses haven’t reduced mind you though I would have lived with that side effect!

So this change in behavior of using less cash and migrating to digital means seen in Metros and big cities which will also spread to small towns and villages in due course could again become one “accidental” after effect of Demonetisation. We all know the overarching benefits of a Cash less /Digital economy. Indians by nature are trained to be less transparent in terms of disclosures – in matters of income and expenses. If we are forced to shrug off this ingrained reticence and have now become more open to transparency (all digital payments leave a trail) I think it is one helluva big step for a country like India naysayers notwithstanding.

2016 has been a historic year when status quo has been demolished everywhere. Brexit, the ascent of Donald Trump and in India – the Demonetisation move. The underlying sentiment has of course been “HOPE” in all these of better times ahead.  With the ushering of another New Year, there is continued Hope. For, Hope is not just a good thing but is the “Best” thing! And isn’t it increasingly perilous to lose its company?

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“Hoping” you will continue to read my posts and provide valuable feedback – see you in the next year!

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Savour the Achhe Din!!!

In these largely agonizing days in India, a call to savour the Achhe Din would seem highly preposterous, isn’t it??? Well, wait a minute!

  • New Delhi, Oct 1984 – The then Prime Minister Indira Gandhi is assassinated by 2 of her own body guards. Over the next few days, thousands of Sikhs get killed and their property burnt in Delhi in a violent reaction.
  • Chennai, Dec 1987 M.G.Ramachandran, the charismatic actor turned Chief Minister of Tamil Nadu died after prolonged illness at his residence. His death sparked off a frenzy of looting and rioting all over the state. Shops, cinemas, buses and other public and private property became the target of violence.
  • New Delhi & Parts of North India, Aug 1990 – The then VP. Singh Government decides to accept Mandal commission report which recommended 27% reservation for OBC candidates at all levels of Govt. services. Large scale protests erupted mainly in North India including self-immolation bids by students against co-opting the report.
  • Mumbai, Jan 1993 – Following the Babri demolition in Dec, 1992, what started as peaceful protests escalated into large scale communal riots in Mumbai between Dec 1992 and Jan 1993 where thousands of people died, properties looted and destroyed.
  • Thane, Mumbai, April 2001Shiv Sena Leader Anand Dighe dies in Singhania Hospital, Thane at a relatively young age of 50 following a cardiac arrest. As soon as the news of Dighe’s death broke, irate Shiv Sainiks went on a rampage in the premises of Singhania Hospital and set on fire the hospital.
  • Bengaluru, Sep 2016 – Supreme Court orders Karnataka to release of 15000 Cusecs of Cauvery water to Tamil Nadu. Immediate violent reactions erupted with burning of TN registered vehicles and destruction of public and private property.

In all the above, one can notice that while the provocations are different – from a leader’s killing to another leader’s own demise to a political move to demolition of a religious symbol to an adverse Supreme Court judgement that too in different parts of the country, the reaction of the people followed a pattern. Violence, looting, mob fury, vandalism,…,…. leading to many deaths and large scale destruction of property.

This proves that as Indians we are a bunch of gullible emotional people. We can get easily provoked into carrying out what are supposedly unlawful activities that bring disrepute to the country and also affect us economically.

In any country’s timeline there are defining moments. Moments which change the destiny of the country for the good or worse. Our country’s history since Independence also is replete with such defining moments – some of them which we can be proud of and others which push our heads down.

I reckon that the Demonetisation call of 8th Nov, 2016 would be such a defining moment in our country’s history when it’s scripted later. I am not here to pronounce this based on the economic benefits of Demonetisation. The erudite are already doing it with media abound with pieces hailing and trashing the move in same breath. And frankly it is early days yet. However something else that is monumental is happening in the country which is what this post is on.

Going back to what I elucidated in the beginning of the piece, in our country we get easily provoked. And the result of the same is there for all of us to see. In this context let’s look at what’s been happening since that eventful address to the nation of the Prime Minister Narendra Modi on 8th November:

  • Bulk of currency in circulation was withdrawn and we were told to go Banks/Post offices to withdraw/exchange the old currencies before Dec. 30th
  • Since then there has been serpentine lines in front of banks.
  • Banks have been woefully short of currency as RBI’s supply chain right from printing to distribution has not been able to cope up.
  • Banks when they had currency only dispersed high value 2000 rupee notes.
  • ATMs have not been mostly functioning and if working for few hours, could give us just 1 note of Rs.2000.
  • The rules of withdrawal and exchange have been changing by the hour and have been the butt of new WhatsApp jokes by the minute! In fact the exchange goal post of 30th Dec. has been brought forward.
  • Both the TV and print media have myriad stories of how Demonetisation has affected the common man in urban and rural areas.
  • There have been many deaths attributed to Demonetisation in many parts of the country. Every day there are updates on the death toll in the media.

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It’s almost a month now and still the situation is fluid. As one can see that this Demonetisation gamble by the Govt. has presented to us – public many, many opportunities to get provoked.  But the one difference is we that have not got provoked. At least up until now. And I hope I have not spoken too soon.

The resultant emotional outbursts leading to violent reactions for events mentioned in the beginning are sometimes quite spontaneous (though it is still difficult to explain the reactions so very violent) but many times orchestrated to further political interests. In this case (Demonetisation) also we have seen few political parties trying their best to spin things out of control and bring the Govt. on its knees. But just that this time around, few things have been different:

  • The common public of all hue – have not taken to damaging of banks, burning of empty ATMs, attacking Bank officers, setting on fire currency vans,… even when they have been driven to heights of frustration.
  • There have not been blackening of faces of BJP leaders or burning of effigies of PM or the RBI Governor!
  • For the 1st time in my memory, political parties had to go a large length to explain that they were not supporting any Bharat Bandh supposedly after reading the citizens’ Anti bandh mood!
  • For the 1st time again in my memory, no political party has given the Demonetisation move a communal colour so far. Otherwise in our country any decision from awarding a Padma Shri to constructing a hospital is given a communal tint by commentators and vested interests very convincingly.

For the above reasons I would like to believe that the benefits or otherwise of Demonetisation notwithstanding, this move will emerge as a defining moment in India’s history – where the public of India completely toed the line of its Prime Minister, shunned the rhetoric of others, remained unprovoked and went through the grind.

I am not sure if we as a country will display such great maturity in reacting to unfavourable events in the future. But for now, let’s savour the Achhe Din!!! Shoba De in her today’s column calls 2016 – Annus horibilis! No, Ms. De – for this significant change in our public reaction, 2016 is in fact Annus mirabilis!!!

Toon Courtesy: Satish Acharya

Also read my other post on Demonetisation – “Cash Mukt Bharat” here!

Ad today, Sad Tomorrow – A Brand Ambassador’s soon to be story!!!

Since the time, Sindhu won a Silver and Sakshi a Bronze for India at the Rio Olympics, their phones (probably endorsed by a Kareena or an Alia) I guess haven’t stopped ringing. Or perhaps their managers’. For, many brands are on their way to signing them as brand ambassadors. For now it’s O.K., for Sindhu or Sakshi to sign on the dotted line in these endorsement contracts and make hay while the medal shines. However not if the Government pushes forth the changes in the Consumer Protection bill which proposes jail term and fine for celebrities in case of misleading advertisements for products they endorse. The intention being to make celebrities also responsible for products they endorse apart from the manufacturers. “Consumers tend to get influenced by the promise made by the celebrities in ads” is the argument behind the proposed move.

As a marketing professional I have never been very excited about using celebrities in ads to push a product. In B-schools every year, one popular project students carry out with the blessings of their professors is to find out the effectiveness of celebrities in an ad campaign. That the study is done regularly conveys that the jury is still out on that. At a superficial level though, it is commonly accepted that use of a celebrity helps break the clutter and differentiate the ad. Though as per me, this is “laid back, lazy creativity” as there are indeed many other ways to break the clutter. Using celebrities is of course a low hanging fruit for those with big budgets and is often deployed as a creative strategy when one can afford. I just realized that this piece is not on whether to use celebrities or not in ads. We will keep that for another Sunday. But on the proposed changes in the law which could stop the party on its tracks for the so called Brand Ambassadors.

Going back in time, I think ads whether print or TV just had people featuring in them and were called as models. And then slowly the practice of plugging in celebrities like actors, sportspersons,… crept in as I mentioned, probably to make the communication stand out. I am not sure when this “celebrities modelling” for an ad morphed into “endorsing the product” and then as we see now becoming “brand Ambassadors” for the company.

She looks like Sonia Sahni to me.

As long as celebrities “featured” in ads for products I guess they were just plain actors parroting some lines. But when they started endorsing brands (making a killing in the process) – that’s when I guess they came into the ambit of influencing buyers’ decision and of course within the prying eyes of lawmakers. In my understanding there are 2 types of celebrity endorsements. First, where a celebrity is used to promote a product which is related to what he/she is doing and is a direct endorsement. For example – A Sachin or a Kapil Dev being used to promote ‘Boost’- an energy drink for children. When Kapil says – “Boost is the secret of MY energy” there is a clear communication to moms that “if you want your child to become like me, do consider giving Boost to your kid”.  Or when Katrina Kaif says – “if you want a smooth skin like mine, use Lux Soap”!

The second category is where brands just use a celebrity as a face in the ads and the products may not be related at all. For example – Amitabh Bachchan featuring in Binani Cement ads.

And probably there exists a third category – where the product is not related to the celebrity’s field of normal work but companies tap into the credibility of the star to push their wares. Though this is not common, we have started seeing this of late. For example, when Cadbury’s wanted to make a comeback after they got hit by the “worms inside chocolate” tornado, they dialed in Amitabh. Amitabh featured in the commercial as “himself”. See the ad here. As you can see in this TVC, he was clearly putting his personal credibility at stake to communicate to consumers that with the many steps taken by the company, “All is well” with the chocolates!

(I’m not considering the social awareness campaigns using celebrities for the moment)

In the whole business of celebrity endorsements, many questions do arise. Do the celebrities who extol the virtues of brands use the product/service themselves? Have they first checked if the claims they are making are true? In the case of endorsing for investment projects,.. do the celebrities vouch for the credibility of the promoters?

The thinking behind the proposed changes in the law seems to be after many instances of consumers landing in the pit after they invested their hard earned money in projects which also had big stars endorsing the same.  At the same time, there have been so many cases where consumers lost money in projects where stars were not at all involved!

It is difficult to believe that consumers are so gullible that they buy a product just because a star endorses it. This premise seriously underestimates the intelligence of a consumer. If just a star endorsement can make a product tick, all those mobile phones with celebrity brand ambassadors must be outselling the I-phone isn’t it???

But whatever it may be, punishing celebrities for wrong claims of a product because they feature in the ads seems a bit farfetched.  A consumer is expected to do his/her bit before deciding to buy a product/service. More so in the case of big investments. Putting the blame on a M.S.Dhoni just because a real estate project he endorsed didn’t see the light of the day is sheer escapism, I believe. I think we should consider celebrities featuring in ads as enhancing the entertainment quotient and nothing beyond that. At the same time as a socially conscious individual a celebrity should be careful in lending his/her name or face to a product which has inherent health concerns a la Gopichand who refused to feature in Cola ads in his prime time! And also do a bit more homework on the credibility of the brand/promoter before signing on the dotted line for the next 1 crore endorsement deal. Or else post the new law it will be “Ad today, Sad tomorrow”!!!

Post script: Will be interesting to know in which category of celebrity endorsements does the Jio campaign featuring our PM fall into???😝😝😝

“Idea Extension Trap”!!!

Al Ries and Jack Trout the “Art of Positioning” gurus in their best seller – ‘Positioning – The battle for your mind’ devoted one full chapter on what they call as the “Line Extension Trap”. They claimed that Line Extension whereby marketers having built a successful brand in one product category extend the same brand to another line of products is a trap. A vicious trap which as per the marketing gurus ends up diluting the core promise of the original brand.  A Ponds talcum powder which has been a very successful brand when extended to a tooth paste confuses the consumer and eventually fails. And there are more examples. But in business, line extension is often the trap which the brand managers walk into with their eyes open with their advertising agencies in tow.

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These are the times of “Big Ideas”. And I see the same extension happening on good ideas. For example once an advertising communication idea once does well as measured by the viral and viewership statistics the temptation is to flog it again and again.  This, without realizing that the idea is already way past the best before date. A telling example of this is the Star Sports’ Mauka Mauka campaign. The first spot (see here) on this now familiar campaign was conceived before the Indo-Pak encounter in the league stages of the ICC ODI World Cup in 2015. With the background of the previous Indo-Pak meetings at the Cricket World Cup which have all been won by India, the spot featuring a Pakistani fan waiting desparately for a Mauka (opportunity) to celebrate a Pakistani win was bang on. The idea, the story and its execution no wonder caught the fancy of millions of fans and the commercial soon became a case study for viral marketing! It also spawned a variety of spoofs which added to the value of the Idea. So it was not surprising that Star Sports followed it up with another Mauka spot for the next India match which again became popular. Having smelt blood, the broadcaster decided to flog the Mauka Idea. India exited the World Cup in the Semis, but the Mauka spots didn’t. Now as the World Cup progressed, Mauka spots started to get boring, repetitive and almost were like being thrust upon the audience. One year later, for the ICC T20 World Wup, Star Sports was back as the official broadcaster. So did the Mauka ad just before the Indo-Pak match. Only that this time, the story line looked unnatural and the ad fell flat in terms of idea and execution. Now this is what happens when marketers (Star Sports in this case) waltz into the “Idea Extension Trap”. Star Sports is not alone and there are many others in its August Company.

Vodafone for one. I feel that the mobile service provider with its once adorable pug has also fallen into this trap. For its 4G launch (watch here), it has tried to resurrect the charm of the pug which few years ago did wonders for Hutch with its “Wherever you go our network follows” campaign. The pug again was brought into action when Hutch became Vodafone and it wanted to popularize their “Happy to Help” stores. But now in this Vodafone’s 4G launch campaign, the pug is looking tired and jaded (atleast in our eyes) and the campaign when compared to the Airtel’s 4G campaign doesn’t stand and that’s in my humble opinion.

In the big screen also oflate, idea extensions have become rampant. The original Hrishikesh Mukherjee’s Gol maal was a classic and will remain one. This is one film which got remade in almost all major Indian languages. But the subsequent Rohit Shetty imitations of Gol maal in the form of Gol maal returns, Gol maal 3,..  will remain just that.  Lowly imitations of an idea which has now been flogged to death. Rohit Shetty went one step ahead by milking the same Gol Maal idea in another name – Bol Bachchan!!

This bug of Idea Extension is most prevalent in TV programming content. A successful format gets packaged, repackaged and extended and finally kills the original idea. When Kaun Banega Crorepati becomes a roaring hit with Amitabh Bachchan in Hindi, the producers extend the same KBC format to different languages with regional stars. The fact remains that there can be only one Amitabh Bachchan. The regional shows turn out to be pale imitations of the original big idea.

Is this trend of extending and flogging ideas which have worked in the past, due to pressure on time or pressure on cost, or a thought out strategy or plain laziness or a combination of all these is a matter of conjecture.  But one thing is very visible and clear. The temptation to walk into the “Idea Extension trap” is real and looks like may not recede in the near future.

Post script: Now here’s the irony. Having tasted enormous success with their 1st book –‘Positioning – The Battle for your Minds’, where they warned marketers of the “Line Extension trap” authors Al Ries and Jack Trout did exactly the same thing. Extended the “battle” concept to their next book and called it ‘Marketing Warfare’!!!

Long lasting Budget Wishlist!!!

Tomorrow, on the 29th Feb 2016 as the finance minister “rises to present the budget of the Union for the year 2016-17”, he also raises a lot of hopes. In the media in India in the past 1 week or so, it’s been raining wishlists from the budget. As an Aam Admi, I also got tempted to join the bandwagon to submit my own wishlist though I know very well that it’s too late to incorporate even one from this (Wait a minute, may be one can be). But I still go ahead and here’s my list of 10 things which I would like to see change around the budget atleast in my life time.

Here we go:

  1. First up, do away with this archaic “Halwa ceremony” where the FM participates to prepare Halwa in the North Block office along with the staff who are going to be holed up for few weeks in isolation running upto the budget. What’s this Halwa got to do with the budget making? On the other hand, “Halwa Kudukarathu” (Giving Halwa) in Tamil is a euphemism for taking one for a solid ride😁😁! So unless the Govt. actually meant this only every year, they should stop this. And what’s this FM and team posing every year stirring up the Halwa😩
  2. On the day of the Budget, one familiar sight every year you can’t escape is the FM posing with a shining new “Brown Brief case” just as he enters the parliament. To me this brief case symbolizes extreme colonialism which we find it difficult to shrug off. In British parliament also same thing happens to date. (For more on the history of the “Budget Bag” pls click here).  For a country, which boasts itself as an IT behemoth and all that jazz why can’t the FM just walk in with a high capacity pen drive or a lap top instead of this antiquated brief case??? Won’t that be cool?

Budget pic3. And as the FM reads the budget speech, it’s usually from a huge bound document supported by a wooden stand crammed with facts and figures. How will it be if the same is presented as a power point presentation – with slides to the point with graphics? (something we could see in this year’s Economic Survey presented by Arvind Subramanian and team)

4. I don’t know when or who started this trend of sprinkling budget speeches with Shayari??? I do know that FMs like Manmohan Singh, Yashwant Sinha and now Arun Jaitley (Not to mention P.Chidambaram and his Thirukural couplets) get into shayar mode in the course of the budget speech but with limited effect. While it’s good to keep the speech which tends to get boring interspersed with some couplets, poetry,… more often than not it looks thrust upon and not in a flow. As if the British left that also as a rule! Some good self-deprecating humour could be a better option!

5. What is this thumping of the desks by the treasury benches for every outlay announced? It’s now obvious that outlay in itself doesn’t mean anything. Before the FM starts reeling out budgetary allocations, I would like to see the FM starting with the “Outcomes” from the outlays of the top 20 items in the previous year and explain how it benefited the people at large. That will give us some idea as how “our” money has been utilized and for the Govt. an opportunity to boast their report card. This can be followed by the outlays for the next year with clearly expected outcomes from the same.

6. And what is this “ranking” business the media resorts to by the Industry captains immediately after the budget? We have now seen that the devil is in the detailed explanations that surface later. So any ranking without understanding the fuller provisions according to me is an exercise dipped in frivolity.

7. And when is the last time you have seen industry captains giving a thumbs down to the budget?? It is generally a mega thumbs up or atleast a thumbs up with conditions attached. The feedback is always ‘right” and seldom “honest”. So why get into reactions from the Industry which are any way far removed from honesty?

8. Any why do the pink channels get excited and scream about the way the Stock market reacts to the budget?? We have now seen many times in the past that the Stock Market reaction to the budget is knee jerk and not borne out of any proper analysis of the after effects of budget proposals.

9. And why do the pink papers – The Economic Times in particular come out with a blockbuster issue the next day of the budget with the full budget speech and the myriad annexures??? Just upload on the net and leave it to the discerned to access if they need. Saving trees and the environment can just start here!

10. And finally, instead of the FM just making a once a year marathon appearance why not present a review of the budget and the progress made on outlays once every Qtr.? This will help us understand which ministries are performing and will aid PM to separate the wheat from the chaff!

I admit that my wishlist is more on the “method” and not on “matter” and “form” rather than “content”. One of my earlier posts (read here) delved on that a bit. Hopefully we get to hear something sweet in the leap year budget speech tomorrow which will leapfrog our economy. And are not dished out the greasy “Halwa” we Tamilians abhor.