Fishing For a New El Dorado
- The Marketing Club Panel

The Marketing Club panel sought to understand the changing perceptions and preferences in the new Indian economic landscape. Panellists Roger Calmeyer, Managing Director of Colgate Palmolive India; Arvind Mathew, President and Managing Director, Ford India; Jitu Mehta, RPG Spencer Retail Chain; and Praveen Pinto, Head of Branding, Reliance Infocom, spoke about strategies to secure market positions in a dynamic marketplace. Harish Bijoor, Bijoor Consults, moderated the discussion. He kick-started the proceedings with a presentation on “Where Do you Fish Now: In search of the New El Dorado.” His perspective on product manufacturers being compelled to transform themselves as service providers in this dynamic business environment was refreshing.

Roger Calmeyer said that Colgate Palmolive always considered themselves more a marketing company, which was in the business of providing a service to the consumer, rather than a manufacturing company. “It is a great time to do business in India, with per capita GDP growth and consumer confidence being among the highest in the region.” he noted. He added that high income levels and a growing middle class increased the marketable population to about 80% of the total population. Roger’s key assertion was that the high income class, which was burgeoning, wanted lifestyle products, and have the money and willingness to pay for products and services that provide value. Therefore, the El Dorado for Colgate was to provide innovative value added products for the discerning upper income population on one hand, and increasing penetration to the vast rural population on the other He summed up that the El Dorado was always beyond the visible horizon and not the next big thing that was going to happen. “It is more a journey without end with multiple destinations,” he said.

Arvind Mathew talked of India’s emergence as a growth engine in the world economy. The Indian auto industry, which crossed the one million mark two years ahead of forecast, had, according to him, a completely different composition and challenge proposition compared to other global markets. “Outward-looking and extravagant urban consumers are fundamentally different from conservative shoppers due to growing income plus exposure to global trends,” he said. He also contended that the most fundamental ingredient to sustain growth was the brand. “Global brands adapting to local marketing conditions, a consistent identity and customer experience, maintaining a positive relationship at every touch point from marketing campaigns and test-drives to after-sales support - all this will generate consumer loyalty,” he said. According to him, innovating constantly, introducing new products and services and maintaining a benchmark for quality and trust were fundamental to sustain that brand value – the true El Dorado.

Jitu Mehta, CEO, RPG Spencer shared his perspective on the emerging retail industry in India. According to him, the exponential growth witnessed in the size of the consuming population, coupled with rising incomes and falling interest rates will fuel the growth of organised retailing in India. “The changing dynamics of the Indian consumer has changed the shape of the market from a pyramid to a diamond, and the new El Dorado lies in satisfying this growing segment of the population,” he observed. He noted that shopping these days is changing from a need based activity to a family experience, and retailers today should target this changing mindset of the Indian consumer. “Experience and fun is where the El Dorado is,” he concluded.

The session was taken forward by Praveen Pinto of Reliance Infocom, who summarised the paradigm shift as “from the traditional families, content with their low-end mobile, evening soaps on their 21” TV and home cooked food to the need for high-end mobiles, plasma TVs and regular eating out.” He said that an average consumer spends 11 hours a day or more in front of a screen whether television or computer, and the future lay where all this content would converge into a mobile. The convergence of services to a single device, or the “Triple Play” as he called it, was the new El Dorado. Another interesting point made was about how seamlessly the content would flow from one medium to another. “You could be watching the power plays of a cricket match at office on the computer, continue with the middle overs on the mobile during your ride back home and then watch the slog overs on the plasma television in your living room. This is where we are headed,” he said.

Harish Bijoor concluded by saying that though the concept of El Dorado would make all the marketers salivate, the key point to remember is that the consumer of today is educated. Branding today is not just about exclusivity, but making your customers inclusive in your marketing programme, he said.