Packaging of the Package!

In India, in the past few days, most Indians or at least the urban folks have been hooked on to the television by 4.00 p.m. every day. Ever since Prime Minister Narendra Modi made a grand announcement of ushering in an Atmanirbhar Bharat with an economic package of Rs. 20 Lac Crore, not just the devil, hope was also in the detail. So, it was left to the finance minister Nirmala Sitharaman to announce the details that would not belie the hopes of millions of Indians.

In India today and probably the world over, if one has to depend on the media commentary to make up one’s mind on an issue, it is virtually impossible. On any topic, the tone of the commentary and its conclusion can be guessed without even reading the piece or watching the full clip, by just looking at the author’s name or the medium carrying it. These days, very rarely you get to read a piece that gives a balanced opinion on a topic, the two or more sides of it, the pros and cons and possibly the positive and negative impact.  So, even to the slew of announcements the finance minister has been making, the reactions have been on predictable lines. The pro-government media/authors have been only praising the initiatives while those opposing have only picked up holes in the announcements. Balanced commentary is increasingly becoming as oxymoron.

It is under these circumstances that I feel, any government today needs to be super-efficient in its communication, so that it has the intended impact on people.  The usually communication savvy Modi Sarkar, has been found wanting particularly in these dire times, when it is utmost critical to bring in comfort and then confidence to the public at large. I will explain why and will try my best to provide a balanced view.

  • First up, the intention of the government not to get bogged down by Covid, but use it as an opportunity to re-define strategic priorities for the country is welcome. To that extent, Modi’s speech on the 12th May, was pretty much on point. There was a vision and though delayed, a financial economic package to the tune of Rs. 20 lac crore,  which are both commendable.
  • The details of the package were to be released in the next few days which is what happened in the last few days, beginning 13th Feb and ending today.
  • The announcements do reveal that the government has done a lot of homework and that probably explains the delay in the unveiling of the package. Having said that, there has been issues with the content and form.
  • First the content.
    • The government in its wisdom chose to use this opportunity not to just announce the economic stimulus package but also address long pending reforms and amendments in laws which is appreciable.
    • Globally, there is an Anti-China mood and having a strategic game plan to take advantage of the changing winds is important. So, some of the measures announced I believe, are in that direction which augurs well for the country.
    • While few may understand that some measures are meant for short term remedy and others are meant for long term transformation, most of us cannot make the distinction.
    • It would have been better if the Government had broken down the announcement into two parts.
      • The first one, to just focus on the immediate short term stimulus/support measures that will “comfort” the ailing strata of the society. This announcement was the one which was widely and eagerly expected. So, what is in it for the MSMEs whose businesses have suffered badly, the urban and poor workers who are left without work and wages, and the farmers who have lost their income?  In this regard, some of the initiatives like the expanded MSME credit facility even without collaterals, free ration to the poor including those without ration cards and the Additional MGNREGA allocation are greatly appreciable.
      • There has been all around pressing calls for cash transfer to the poor as the panacea for the migrant crisis that has unfolded. The government’s view is that, it believed in empowerment rather than entitlement as a route to support poor at this stage. Also, there is a view that money transfer may lead to longer lines in front of liquor shops. There are no doubt, merits in these arguments. But, considering the current acute distress situation, it would have been good if, the government opted for cash transfer to Jan Dhan accounts of women for the next six months.  That would have addressed the lack of money and the alcohol problem in one bullet.
      • The second part could have been reforms and parliamentary actions that are more strategic that will give “confidence” to investors – domestic and foreign.  Muddling all these and choosing to announce major and a lot of minor initiatives together, has resulted in a problem of comprehension.
      • On each of the days of announcement, Twitter and WhatsApp groups were buzzing with more questions than answers, as to what all these actually meant the Aam admi. If the urban elite couldn’t make out that, how do we expect the poor who are expecting some immediate succour desperately from the government to comprehend what is in it for them?
      • If restricting the announcement to the top four or five big “new” initiatives would have reduced the stimulus to Rs.15 lac crore or something, so be it. That is better than creating a Shock and Awe with a huge amount and eventually leaving the public to just count the zeroes in it for the rest of the year.
  • Second the form.
    • In India, most of us suffer from what I call as the “More Points in Power point” syndrome. We feel that if there are more points in the slide, it is always better. In the corporate world, this syndrome translates itself into “More strategies”, More Key Actions”, “More priorities”, More slides, More everything!
    • In this case, the government too being a victim of this syndrome, ended up re-hashing many old initiatives, repeating stuff which have already been announced in the last budget. For example, the “One Nation One Ration Card” initiative was first announced if I am right in 2016. Stuff like reforming the Essential Commodities Act etc. have been touched upon in the past budget speeches.

The result is that, the Finance Minister ended up making her third budget speech for this year, the only difference being, it was in tranches. From the government’s point of view, this would have helped in deflecting the headlines for a week from the migrant crisis and other related bad news. But, I am not sure if the budget speech type announcements have helped in either “Comforting” the needy or building “Confidence” among the business community!

When marketing Guru Philip Kotler first talked of the P’s of marketing, he just referred to 4 P’s – Product, Price, Place and Promotion.  As marketing evolved, more P’s like Positioning, People and Packaging got added over a period of time. In the modern retail world, packaging got a lot of prominence due its influencing role at the point of sale. In today’s era of political communication too, I believe, even an economic or a stimulus package needs to be “Packaged” properly to reach its desired outcome.

Lest we forget, Narendra Modi has been the maiden recipient of the Philip Kotler Presidential Award.

Cartoon credit: Satish Acharya