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And, there's only one thing that they all seem to want to talk about: the phenomenon called Patanjali. Patanjali Ayurved, on the other hand, added almost the same quantum of revenue, and, in the process, is likely to double its revenues to Rs 5,000 crore (Rs 50 billion) by end of March. It is clearly the fastest growing FMCG firm in the country, with the widest product portfolio.
That's the kind of traction that most former FMCG veterans like Mr Chawla have ever seen in their entire career. For the FMCG companies though, the disruption that Patanjali has wrought is for real, because it challenges many of the long-held assumptions in the classical FMCG world.
That gives the company the leverage to price its products at least 15-30 per cent cheaper than other branded competition. For an entire generation of FMCG managers, who have grown up on a different menu, the Patanjali phenomenon is proving to be a bit hard to digest.
Much of this criticism may well be true, except that it isn't just about Baba Ramdev's magic or about the power of herbal and ayurveda alone. The writer is co-founder of Founding Fuel, a learning platform that serves a community of entrepreneurial leaders.
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New segmentsTraditionally, the motorcycle market has been seen as three distinct segments: Entry (100 cc engine capacity, 65 per cent of the market), executive (125-135 cc, 20 per cent of the market) and premium (150 cc, 15 per cent). More important, this view of the market has become the cornerstone of Hero Honda's strategy. Two-wheelers for allHigh-decibel advertising does not work if not backed by the right products. Some time in early-2006, Hero Honda got into scooters with Pleasure, again with a unique positioning - "Why should boys have all the fun?" "We were a late entrant and therefore had to do something innovative," says Munjal.
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To get real insight into Xiaomi’s unique ethos, one has to delve deep into founder, Chairman and CEO Lei Jun’s past.
Lei would eventually steer Kingsoft to profitability, exiting the company in 2007 due to ‘health issues’ after taking the company public on the Hong Kong Stock Exchange for a market capitalization of USD400 million.
While USD400 million was certainly no small sum to scoff at, it paled in comparison to the massive internet empires (and corresponding personal profiles and reputations) built by fellow Chinese tech superstars at the likes of Alibaba, Tencent and Baidu. Moving on from Kingsoft, Lei’s subsequent investment in Vancl, an online retailer which nearly folded would teach him another vitally important lesson. It was around this time in the late 2000s, when Lei would find himself increasingly fascinated with the burgeoning smartphone craze.
Taking pointers from his own experiences, and where the likes of industry players like Nokia failed, Lei’s compelling vision of a smartphone company which moved, reacted and adapted to market demands and conditions as fast as a tech startup found great favor amongst investors, and ultimately as we would find out – the public. With a high-powered team assembled and substantial funding in the bag, securing buy-in from component manufacturers was a crucial stumbling block the unknown Xiaomi had to overcome. XIaomi’s unique, wildly successful business model is one for the history books – they’ve drastically cut down on the traditional costs associated with marketing and distributing, by relying purely on the Internet for sales. But it’s this conscious decision to forgo greater margins from the phones itself, despite sporting components coming mostly from the same exact original equipment manufacturers (OEM) Apple or Samsung would use; that has allowed it to carve out such a substantial market share in no time at all. What has resulted are phones consumers love, which are absolutely nothing like the cheap knock-offs many traditionally associate China manufacturers with, but instead top-of-class, full-featured products often containing components from some of the top tech firms in the world such as Sony, Sharp and LG – put together by the same assembly factories used throughout the industry such as Foxconn. From a consumer perspective, the limited availability of its products in batches has strongly driven consumer fervor and inculcated built-up demand – regardless of whether this supply scarcity’s legitimate, or one artificially implemented, precisely in a bid to build up and drive that demand (a topic which has been widely debated online umpteen times). From a supply chain management perspective however, Xiaomi’s ‘Just-in-Time’ inventory holding technique has been a staple of its business model that’s helped keep costs down through less inventory holding costs, and decreased risks of overstocking on products which don’t move (like Lei’s Vancl).


In addition to the limited production runs, Xiaomi has also brilliantly departed from traditional mobile sales strategy to augment its razor-thin product profit margins, by selling the same phones for a much longer period than the majority of its competitors. For example, it might stick with a flagship for 18 months instead of one every half a year, giving it more flexibility with profits, better scope to sell accessories, and most importantly to take advantage of economies of scale, when component and production costs drop over time. Xiaomi’s model was oft-mocked in the company’s infancy, with naysayers arguing along the ‘if it isn’t broke, don’t fix it’ line.
Lei and team’s vision has clearly paid off – they spotted an opportunity to not just impact, but greatly disrupt the worldwide smartphone market through the ground-up rethink and implementation of a business model never before tried in this industry. No two businesses are ever perfectly alike, and a bevy of stars certainly aligned for Xiaomi to achieve the success it has today. These would include their famed ‘hunger marketing’ tactics (already a well-known case study in itself), as well as that unwavering belief in a compelling vision which radically departed from the norm, not an easy task at all when everyone else was trying to knock them down. Inventory however, will nearly always remain the singular biggest asset and lifeblood of any retail business, and putting in-place effective inventory holding and stock management techniques will give you a good jump-start on the path to success.
The most important lesson to take home would thus perhaps be the one Lei learnt from Vancl, and which he absolutely nailed the second time around with Xiaomi – the importance of finding, understanding and implementing the right inventory holding technique to suit the needs of your business. Lei understood that inventory management can literally make or break a business, and structured Xiaomi’s entire business operations around the ‘Just-in-Time’ inventory holding technique to minimize logistics and holding costs, while giving the company the best opportunities to reap enormous long-term success and profits. The answer for your business might not be ‘Just-in-Time’, but perhaps an alternative technique such as drop shipping (sellers on eBay, Amazon etc), consignment, or even cross-docking (Walmart).
And that’s something we can all definitely learn from – for the little Chinese startup that could is now a rapidly-growing powerhouse conquering one market at a time, well on the path to global domination.
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The Future Group, which announced its tie-up to stock Patanjali's wide range of products last year, is furiously reworking its sales forecasts because the products are simply flying off the shelves.
The savings in distribution margins and the low overheads straightaway translate into a 20-25 per cent cost advantage. From a producer of fuel-efficient motorcycles, Hero Honda has morphed into a marketing-led organisation. All three have different price points; entry-level bikes are for the rural markets, while the other two are sold and bought in the urban markets. When it decided to chase market share and not profits, it also decided that it would offer no discounts on its motorcycles.
The consumer insight here was that women want freedom of movement and a scooter could address that demand.
Bad loans had risen with alarming rapidity and they had no option but to reduce their exposure to two-wheelers. Bajaj Auto too is learnt to be working on a slew of new models to take on the market leader. It boasts of several billionaire brands - that sell more $1 billion a year - and claims to touch over a billion consumers a day. What it means is that we try to put our operations in place in most of places we are present. A computer science graduate from the prestigious Wuhan University, Lei would join Kingsoft, a young Beijing-based software company – swiftly rising to CEO as the company struggled to stay afloat, no surprise when your main competitor’s the global juggernaut Microsoft. This however, was largely based off its diversified interests like online gaming, as opposed to its software suites.
This was taken akin to a personal failure for Lei, and it would be the catalyst driving him to pursue the success he felt his talent deserved.
Poor inventory planning had led to severe overstocking of its warehouses with goods that wouldn’t sell, a mistake Lei would never make again. One thing would lead to another, and alongside Lin Bin (then, a Google mobile executive) and several other accomplished, like-minded veteran technopreneuers, Xiaomi was born. While initially rejected by 85 of 100 of the world’s top suppliers, through sheer persistence and some unique strategies, this would be a challenge they would eventually ace. But many still wonder how it manages to put together such high-quality products at such low price points, which it claims to be just above cost.
That’s not to say Xiaomi does not earn from its mobile phones at all, for it still certainly does (albeit at a much lower margin). But even giants like Nokia and Motorola fell by the wayside, trying to compete traditionally with today’s leaders like Apple and Samsung.
But there would certainly be lessons applicable from Xiaomi’s story for just about any company. But whatever the right answer is, Xiaomi’s remarkable success story has highlighted how crucial a decision that is, and the massive impact it has on your business as a whole. If Turkey would stop its bombardments and raids against the PKK in Turkish cities and return to peace talks, we could have a cease-fire on the same day. Consequently, much of the country is without power and there is insufficient fuel to power the pumps. Tensions between Egypt and Iran heightened when the Islamic Republic named a street after Khalid Islambouli, who assassinated Egyptian President Anwar Al-Sadat in October 1981.
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Advertising campaigns, product refreshes and brand health - walk blindfolded into the Hero Honda office in a crowded south Delhi market and the language spoken there could lead you to mistake it for an FMCG company.
Hero Honda, conventional wisdom said, is strong in the entry segment with a market share of 80 per cent and weak in the other two where its share ranges between 15 per cent and 20 per cent. Hero Honda comes out with new motorcycles, variants and refreshes keeping the customer profile of each segment in mind. It subsequently roped in Priyanka Chopra as the brand ambassador and started 20 "Just for Her" sale and service outlets staffed only by women. Five hundred sales representatives were taken on board for the mission Har gaon, har angan (every village, every courtyard.) These representatives have been given work tasks and not sale targets - they need to meet potential customers and opinion leaders in villages.
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He understands his responsibility, and he understands what we re trying to do as a football team.
Thus, the advertisement for the Karizma (premium segment) comes with the punch line, "Always game." The ad for the premium segment Hunk doesn't talk of speed or power at all - the focus is on the looks even while standing. Production is up to 14,000-15,000 per month and Hero Honda's market share has reached 13-14 per cent. What differentiates us though is the fact that we invest about 2 billion Swiss francs ($1.9 billion) a year in research and development. Prior to the beginning of each session, the agents were informed that providing false testimony to the body was unlawful.
And a few of Ortega’s twelve brothers and sisters live in the area and help out on the farm. Wholesale Jerseys "This report is relevant to persons who are seriously ill, their parents, children, extended families which essentially means every American," said VJ Periyakoil, director of Palliative Care Education and Training at Stanford University's School of Medicine, who was not involved in the report. He assigns her to the island to research immortality, and she suspects the key to realizing it lies in the pre-teen Natalia, another prisoner. Shapcott describes Golf Revolution as the “yoga model”—you join a club and drop in for as much or as little training as you want in a pay-as-you-go way. Customers, for instance, trade freely between a top-end 100 cc motorcycle and a low-end 125 cc motorcycle or between a premium 125 cc motorcycle and a basic 150 cc motorcycle. The CBZ Extreme comes with the promise, "Thinking is such a waste of time." "Both the Hunk and CBZ Extreme are 150 cc bikes but talk to different customers," says Dua.
You need to look at the total cost of ownership - installments, cost of fuel, maintenance, service, insurance, parking and road tax," says he. They are about the ethics that we follow in everything we do as well as our own behaviour and responsibility towards people. Our factories here use Indian raw materials produced by Indian farmers to make products that are made to Indian tastes and are sold in the country - that is the way we operate.What it means is that wherever we start operations we immediately start creating shared value. I don't know what exactly you mean by functional foods, but if you are referring to what we call nutraceticals which add nutrition through processes more close to pharmaceutical than food processes, we have those kind of products. The BND agents repeatedly insisted that the selectors provided by the US were precisely checked. It's also Natalia who greets Barry when he arrives on the island six months after Claire and Moira's escape attempt, searching for them. The name riffs on Matson's love of traditional folk textiles and patterns that inspire and become incorporated in her work.
What makes someone's career in this company is his or her ability to follow these principles. As we grow, the community connected to us starts to grow - not only our business partners and employees, but also our suppliers, the farmers who supply us raw materials, our distributors and so on.
Pushing Up People was inspiring to read; it reminded me that even though aspects of reaching my writing goals can be difficult, it's still worth it to push on and continue working. The insurgents want to carve out a separate state governed by their strict interpretation of Islamic law, and some have links to the Islamic State group. It shows in its domination of cricket, selection of youth and style icons, and association with shows like MTV Roadies which improves involvement with the hinterland." This was the first change Hero Honda internalised in those turbulent days. So, Hero Honda decided to look at the motorcycle market not from engine capacity but from the customer's point of view - how he brackets the products available in the market through his demographic and psychographic profile.
The company has decided to launch eight or nine new products, variants or refreshes every year.
These "waves" are mounted just before the harvest so that Hero Honda is on their radar screen when they have cash in hand.
There will be one more motorcycle in the market." Still, Hero Honda is not taking any chances.
As I said, when we make a product, we tell the consumer what it is all about and the elements of good nutrition. For instance, if you want to create value for the society, you have to behave from an environmental point of view.
Pushing Up People covered a wide range of topics from making goals to having the right kind of attitude to how we should view failure and how praise is more powerful than punishments.
As consumers get confident, they like contemporary things that spring from their cultural identity, says Mr Mall. Hero Honda has a large portfolio of products (13 motorcycles and one scooter), so it has to create distinct position for each so as to avoid customer-confusion and cannibalisation of products. And these launches will be spread across the three categories because, says Dua, all are growing at a fast clip. This was because of its strong sales in the rural markets - almost 40 per cent of total volumes, say Munjal and Dua. Munjal has tasked his engineers to come out with a low-cost motorcycle, one that combines the price of a moped and the performance of a motorcycle, through value engineering and tax planning. Overall the book is geared toward leaders and the correct way to treat their employees, but I think the book is a good read for anyone. The diagnosis was that the company's differentiation in terms of propositioning to customers was weak. Knocking a couple of thousand rupees from the current price points (Hero Honda's cheapest bike currently costs around Rs 31,000) will not help. Every Nestle product has a nutritional panel or compass on the pack which helps in understanding its nutritional value.
The most important thing with those kind of products is to learn, so that the learning can be translated to expand the value of our common products.
It became oriented towards becoming a multinational company because Switzerland was too small. We have a nutrition council that takes into account nutritional needs along with the global prices of commodities. Then we also help them with improving the quality of yields, helping them in selecting the right seeds, with the scientific farm techniques, and in conserving the produce. Rating I'm giving Pushing Up People four stars and recommending it to anyone twelve and up although some portions of the book don't exactly apply to that age group. Thus, it roped in film stars Hrithik Roshan and Priyanka Chopra, joined the Indian Premier League sponsorship bandwagon, and got associated with television shows like Sa Re Ga Ma Pa on Zee TV and MTV Roadies. Still, it is a known fact that urban consumers depend more on finance than their rural counterparts.
So, the drop in the flow of consumer finance impacted urban customers much more than rural customers.
But in this way, we build a relationship of trust with our consumers which helps the company to grow. We also have healthcare nutrition products that we have developed for patients with cancer, diabetes and digestion disorders. The reduction has been around 40 per cent in the last 10 years; the figure in India is over 60 per cent for the same period. Such extensive research & development then allows us to formulate our entire range appropriately. It has the right ingredients, the quality is impeccable, the packing is done very well, and so when the consumer buys it he feels delighted. Not only complying with the law, rules and regulations - that is obvious - but also complying with the best practices.




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