VOLUME 18 ISSUE 1
THE STRATEGY WALL International Outlook on Indian Tea and Marketing Strategies to Increase Turnover Deployment of Digital Innovations in Agriculture— From Physical to Phygital
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK
“Perception is strong and sight weak. In strategy it is important to see distant things as if they were close and to take a distanced view of close things.� Miyamoto Musashi
Contents 01
International Outlook on Indian Tea and Marketing Strategies to Increase Turnover
04
Deployment of Digital Innovations in Agriculture—From Physical to Phygital
07
Contingency Planning: Ways to Overcome FMCG Supply Chain Disruptions during COVID-19
10
Onset of Digitisation
13
Our India with ‘Vocal For Local’
15
The rise of d2C Model
INTERNATIONAL OUTLOOK ON INDIAN TEA AND MARKETING STRATEGIES TO INCREASE TURNOVER PRASANNA VENKATESAN, IPE HYDERABAD Introduction:
and the analysis indicated that both black and green
Anyone in this world would have tasted a cup of tea
tea are price inelastic. (Economic perspective)
at least once in their life time. In the beverages, tea
Cost of production of coffee is higher than tea, as cost
and coffee form the perfect substitutes. Discovered
of a cup of tea is Rs.5 compared with coffee which is
about 2700 BC, it is one of the oldest beverages in the world. On hearing the fact from WHO that consuming coffee might be the reason for colon cancer, many
Rs.8. (Finance perspective) The area for cultivation also has been increased to 6,36,557.07 hectares from the states like Assam, West Bengal, Tamil Nadu, Kerala, Karnataka..
people have started preferring tea over coffee. Conditions to grow: The tea crop can be cultivated only in tropical and sub-tropical climates. a)
Temperature: 10.C – 30.C
b)
Minimum annual precipitation: 1250 mm
c) Preferably acidic soils, ideally 0.5-10-degree slopes and elevations up to 2000 meters. Production: India’s tea production has been increased by nearer to 4% during 2019. Reasons for growth: The buyers are choice oriented who always wanted to enjoy different flavours like green tea, black tea, mint tea etc. (Marketing perspective) The main determinant for the growth is demand
PAGE 1
Export Trade: India produces a finest tea which is demanded all over
sinensis tea plant, Assam – assamica tea plant) and
the world. India stands in the 2nd position after China
China uses Camellia sinensis var sinensis for tea
globally in the highest tea
exporting countries. The
production. India uses a standard western brewing
main reason is, India offers high quality special teas
technique whereas Chinese prefer short multiple
(Assam tea, Darjeeling tea and Orthodox, Nilgiris) that
steeping method. China is the main producer of white
have distinctive aroma, strength, colour and flavour..
tea which is made with pure buds. However, the same
India earned Rs.5,506.84 crores from its export trade on
buds are available in India too.
tea in the year 2018-2019. Overall, India’s contribution towards the total tea
Forth coming export trade opportunities in COVID19
export among the world is 12.6%. In 2018-2019 India has
scenario:
exported tea to more than 24 countries.
Chinese tea has heavy demand in European countries
Due to heavy demand for Indian Tea in Russia, Russian
followed by United States and Japan. But now China is
government is ready to have a joint venture with India.
facing a shortage in its export as many countries including USA have cancelled trade agreements with China. Hence the export of the tea is reduced in China. India being next to China has high chances to acquire the Chinese’s position and can expand its export business on tea by trying to conquer the Chinese share, so that along with the existing demand the total demand for tea from India increases. Marketing Research: A marketing research has been carried out to know the export trade opportunities for Indian tea companies to sell tea in abroad countries.
Indian Tea VS Chinese Tea Both the teas are grown in Himalayas, but they differ in taste due to brewing methods. India uses Camelia sinensis var assamica for tea production (Darjeeling –
PAGE 2
Highlights of the research
Find the proper source to enter into the foreign
1.
market to have an export trade. Initially it can be
To find whether new marketing opportunities are
there. – Marketer Issue
either franchising or direct exporting
2.
Segment the product to the countries where
To identify new market opportunities in abroad
countries. – Main Objective
Chinese exports are high and target NRI first in
3.
those countries. Position the product as high-
4.
Feedbacks of the buyers/consumers. - Primary Data Reports from Agricultural department on exports -
quality normal price product
Secondary Data
Follow penetration pricing strategy since tea is a
5.
necessity good and also a new product in that
Study was done in Canada, USA, London, Europe,
Australia - Location
market
6.
No of samples taken – 157
Heavily advertise and promote the product to
7.
Study covered all the people who drink tea. - People
increase its brand image.
8.
Tata tea, Broke Bond tea, Lipton tea - Top players
Initially while selling, frequent discounts must be
taken for research purpose
given to boost up the sales as the majority of the
9.
buyers in the market are discount oriented.
Questions were related to the Indian tea with the
parameters like frequency, reason, knowledge. Verdict: Analysis from the research:
This is the right time for Indian tea industries to expand
Majority of the people in abroad prefer quality and price
their market in abroad countries as Chinese tea
as most important factors for buying tea. They consume
production and export has become low and many
at least once in a day tea; they have knowledge and
countries have cancelled their trade agreements with
they are willing to taste Indian tea if new company
China.
ventures into their city.
If India changes its brewing method and with the buds
Requirements to have a good export trade:
of white tea if it starts white tea cultivation, then in the
Produce a high quality of tea
present situation India will have more demand for tea export world-wide..
.
PAGE 3
DEPLOYMENT OF DIGITAL INNOVATIONS IN AGRICULTURE—FROM PHYSICAL TO PHYGITAL ATTISO BHOWMICK, UAS BANGALORE
WWith the release of the Cyberpunk 2077 game, the
soil and environmental conditions, is adequate enough
entire world is now curious about how digitization is
to cause a second Green Revolution, with much more
going to impact our future. When India’s Gross Domestic
focus on environmental sustainability. Remote sensing
Product (GDP) contracted by a record-breaking number
technologies have evolved enough to give precise
of 23.9 per cent and entered an official recessionary
spatial
phase, agriculture emerged as the only support with a
measurements. Although biological and physiological
registered growth of 3.4 per cent. Although agriculture
occurrences, such as pests and disease incidence or
continue to employ a significant portion of India’s
physiological toxicity of a particular element, can be
population,
and
difficult and extremely expensive to monitor per plant
underdeveloped sector. Not only is it overlooked by
basis, their dependence on the physical conditions
innovators due to its lackluster appearance, but also
make them well-accounted for.
carries an indiscreet public opinion among the urban
Production environment vary greatly in agriculture.
masses as a profession suitable only for the lower section
Even a land as small as one acre can have multiple
of
COVID-19
micro-environments at a given point of time. The
pandemic has quite earnestly taken the responsibility to
efficient deployment of technological innovations
show the world the importance of digitization, it seems
therefore requires locally appropriate and continuously
to be a prime time to meticulously introduce and
monitored
reinforce
of
Averages are an important concept for any spatial
agriculture, which due to several reasons have always
monitoring equipment, however setting a benchmark
been neglected and under-implemented.
limit for all parameters can realistically replace regular
The figures of progress that came from digitization of
crop monitoring. Furthermore, micro-irregularities in
agriculture
for
the specific areas can be rapidly addresses before it
Information
escalates. For example, reduction of soil moisture
the
it
is
economic
digital
themselves. Collection
from The
still
an
hierarchy.
innovations
various
pilot
undervalued
When
in
every
projects
implementation
Technologies,
the
including
of
aspect
speak
internet,
and
temporal
analytics
data
and
of
all
the
management
physical
responses.
cloud
below a certain standard can trigger a feedback system
computing for meteorological data and data analytics to
to the farmer with possible recommendations to rectify
analyze, present and continuously monitor the field
it.
PAGE 4
Crop nutrient and disease assessment can be a difficult
So, what is exactly impeding its growth? Anyone who
job
Geographical
has been remotely in touch with agriculture can
Information System and Remote Sensing comes to the
immediately point out to the economic constraints
rescue, the tiring procedure suddenly becomes efficient
of such endeavours. However, researches have
and fast.
Harnessing the help of spatial analysis
showed time and again it is not so.Most countries
techniques, satellite imagery and colour intensity of the
including India, closely regulate their agriculture
crop foliage, irregularities can be identified. No need to
sector. There are more than enough funds to initiate
go for field patrolling each day, the farmers only need to
even the most detailed digital innovation. A network
access the data registered by the system and search for
of localised digital co-operative lending its services
abnormalities. When plants suffer nutrient related
can mitigate the initial costs of setting up of such
stresses, their foliage colour deteriorates. Normalized
technologies. Large landowners often have enough
Difference Vegetation Index (NDVI) can be measured
capital to implement such digital innovations on
using mathematical calculation of spectral bands of
their own. A robust crop monitoring system can
reflected light from the crop within the satellite image
boost the profit by reducing crop losses, decreasing
which quantifies the health of vegetation, as it has an
labour costs, optimising fertilizer applications and
excellent correlation with the degree and intensity of
ensuring better quality. So, why are these still not
green biomass, thus indirectly monitoring crop nutrient
implemented?
Are
deficiencies. Most of the analytical procedures for soil
apathetic
neglect
evaluation involves detailed laboratory analysis and
opportunities? The real reasons of agricultural
cannot be applied to the entire field. However, digital
problems are much more complicated.
devices can be accurately calibrated according to
Unfortunately, all agricultural reforms has always
available data and then can be used for the same
been focused to only two issues: one, the lack of
purpose, with better spatial penetration and detailed
remunerative prices thus causing increased demand
outlook. Cloud based digital platforms can be used
for higher Minimum Support Prices (MSPs) and, the
which contains all data on locally reported diseases and
second, the abyss of farmer’s debt which hinders any
pests, and their recommended remedies. If someone
progress. No real efforts are directed towards
experiences
educating the farmers. Farmers have very little idea
when
done
manually.
potential
disease
When
symptoms,
relevant
to
the
private such
a
companies
so
goldmine
of
warnings can be uploaded in the system.
about modern technology and digital innovations in
One can continue a never-ending discourse on the
agriculture. Agriculture is seen as a tradition, rather
varied usage of digital innovations to tackle real world
than a business. The basic principles of business and
problems in agriculture.
risk
management
fails
to
entice
the
farmers.
Competition and expansion of business loses its meaning when faced with ancestral debts which most farmers inherit as an added package with their land. Data have shown there is an irregular public investment in agriculture, owning to its highly unorganised structure. This also contributed to cause a major shift of rural population to non-agricultural sector.
PAGE 5
The penetration and dissemination of advanced digital innovations into the agricultural industry is progressing at a rapid rate in advanced countries with their more organised business structure in agriculture, and this is positively impacting India’s agriculture. Because of numerous unique attributes of agriculture (involving its highly localized, spatially and temporally variable
resources,
general
poor
technological
development in rural areas, massive rift between education and the real-world scenario, and global players), digital agriculture requires special attention from governments and industry leaders. The transition from physical to phygital in the agrarian economy can only be achieved with a smooth and gradual transition by alignment of all favourable factors, and less likely with a disruptive innovation.
PAGE 6
CONTINGENCY PLANNING: WAYS TO OVERCOME FMCG SUPPLY CHAIN DISRUPTIONS DURING COVID-19 MANDWI SINGH,PGDM, JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW
Introduction
focuses on a digital transformation journey to enhance consumer engagement, drive sales through
The article aims to highlight the various supply chain
e-commerce and build data analytics capabilities for
disruptions that occurred due to travel restrictions
faster and efficient decision-making across the value
under lockdown to stop the proliferation of Covid-19.
chain.
Some of the problems identified include; the production and supply cut after factories were shut in
several
places
by
enforcement
Reasons for Supply Chain Disruption:
authorities.
Another problem identified was the impact on the
Panic Buying: To prepare for an extended stay at
supply of raw material and finished goods due to the
home days and fearing a shortage of essentials at
ban on inter-state lockdown, which hindered trucks'
their
movement.
everything in excess to ensure that they well-
home.
The
consumers
started
buying
stocked if the lockdown is extended more. As a And lastly, the challenges faced in operating
result of this, many essential items flew off the rack
factories with below 50% worker strength due to
like sanitisers, flour, wheat, edible oil, noodles, spices,
restricted worker movement, safety issues, or reverse
sugar, salt, dairy products, rice, pulse, biscuits,
migration.
cleaning tools, and detergents.
The article also suggests and cites proven examples
High Demand: Owing to panic buying among the
followed by FMCG giants to overcome the disruption
consumers, it led to a systemic demand shock. A
and to mitigate the undisputed movement of goods
report by Sameer Shukla, West Market leader-South
to fill the huge supply gap created by panic buying
Asia at Nielsen showed at least 8 of 10 retailers had
by adopting the Smart supply chain model which
out-of-stock challenges amid the lockdown--
PAGE 7
A consumers could not get preferred brands in
with the companies and in the channel could serve
categories like atta, rice, lentils, hand sanitisers and
few weeks of demand for long shelf-life products,
ready-to-eat snacks. Consequently, as much as 65%
short shelf-life products could potentially witness
grocers and 33% chemists sourced products from
availability challenges," says Rishav Jain, Senior
wholesalers at higher rates.
Director and Consumer & Retail sector lead, Alvarez & Marsal.
Restricted movement: The demand graph has gone up. In such a scenario, the movement of essential
Solutions: How to Overcome Major Supply Chain
goods and the orders' delivery have become
Challenges
deregulated and posed a major challenge for FMCG From Supply chain to Smart chain
brands. Shortage of manpower: Lack of public transport and
Supply Chain and the Internet of Things (IoT):
complete lockdown led to the restricted movement
Leaders are applying automation and robotics to
of supply chain workers. At the same time, India also
make their supply chain more autonomous and
witnessed a large exodus of migrant workers
adding suppliers in their home markets to ensure
travelling on foot across the nation. This deficiency
business continuity.
of manpower caused the delay in both the production and delivery of FMCG products.
How AMUL used IoT to maintain stock;
Amul MD & Chairman, R S Sodhi, says that the
"The pandemic situation was extremely critical for us
challenge has been more acute at the country's dairy
since this is an essential service. But thanks to our
company's warehouses. "The staff hasn't been able
integrated IT infrastructure, during the lockdown,
to travel to work due to the shutdown. We are in
our supply chain of 3.6 million farmers, 18,700
talks with the local authorities to allow our people to
societies, 5,000 milk tankers going to 200 chilling
travel. We are also trying to find a way to offer our
stations, making 750 SKU, then going to 62 branches
workers accommodation and food closer to the
and 10,000 distributors and one million retailers, I
warehouse."
knew exactly what was happening at every pointwhere tankers are being stopped, in which village
Inventory management: FMCG experts say that
milk has not been collected, and which market
most companies have 30-60 days of finished goods
tankers could not go. Technology is being used every
inventory. Panic shopping has made it difficult for
day by everyone, but it was critical for us during the
companies to maintain inventories and manage
lockdown. AMUL signed a 10-year partnership with
supply chains. Furthermore, the lockdown has
IBM, which conducted an IT architectural and
caused disruptions in manufacturing as well as the
strategy
supply chain. This disruption in the supply chain is
roadmap for us," says RS Sodhi, Managing Director,
causing the inventories to dry up at the retailers'
GCMMF Ltd (AMUL).
study
and
developed
an
IT
strategy
end. Hostel Facility: Should be provided within factory Food and other FMCG companies face production
premises for workers so that they don't have to fret
and supply chain challenges to make their product
about commuting to work every day and workers
available at the shelf. For example, most production
should also be given free meals. This step would also
units and warehouses are trying to deal with low
minimise the risk of virus.
labour availability, which is as low as 30-40 per cent of normal levels in certain cases. While the inventory
PAGE 8
Educate workers on COVID-19 symptoms and
wsuppliers, in line with scenario-based stress points
prevention: Organisations should educate their staff
identified.
about the COVID-19 symptoms, social distancing, and use of masks and sanitise factories and
Saugata Gupta, MD, Marico told BusinessLine, "We
transport vehicles, among other precautions. Amul
see a change in the traditional supply chain network.
set up makeshift washbasin and put yellow tapes all
For example, 3-4 years from now, we may not need a
around its factory to maintain social distancing. They
distributor salesperson to take orders because there
also checked the returning workers by the doctors
could be an app that does the job. Similarly, there
for any symptoms. On the other hand, Nestle
are these supply chain logistics providers who can
immediately made work-from-home mandatory for
do the fulfilment. There are professional logistics
its office workers. The company also announced
who have economies of scale to do the last-mile
100% incentives for its front-end salesperson.
delivery."
Direct to Home: More than a dozen consumer goods
Monitoring staff availability: Companies should
companies
ITC,
invest in third-party logistics to monitor staff
Mondelez, Procter & Gamble, Dabur and Colgate
visibility and alternate shipping options. Third-party
have started selling products directly to consumers
logistics app will provide them real-time information
circumventing traditional trade and distributor
about manpower availability that can be used to
networks in areas where last-mile delivery has been
different work shifts. This will ensure smooth work
disrupted due to Covid-19 restrictions. Their latest
transition.
including
Hindustan
Unilever,
direct-to-home initiatives involve partnering with Dunzo, Scootsy and Swiggy by listing brand stores
Conclusion:
on their portals and even reaching out to resident welfare associations (RWAs) through their sales staff.
Given the shift in the nature of consumer preference and behaviour in India, it has become imperative for
Marico explained in a regulatory filing, "When it
companies to invest in ramping up the supply chain
comes to distribution, to improve the reach of food
infrastructure. It will provide a seamless journey for
and grocery items of daily use to the consumers, the
consumers through a mix of digital and physical
company
which
infrastructure. Companies that begin investing today
included tying up with food-service aggregators and
in a resilient supply chain will be best positioned to
other logistics partners, launching a direct to
weather the next event that obstructs the global
consumer portal, tele-caller facility for direct reach
flow of goods.
adopted
several
approaches
to the top retail outlets and introducing a retailer and consumer-ordering app, among others. The company has also been focused on a digital transformation
journey
to
enhance
consumer
engagement, drive sales through e-commerce and build data analytics capabilities for faster and efficient decision-making across the value chain." Supplier Risk Assessment: Consumer companies should immediately identify their key/top suppliers and understand/assess their risks and ability to meet supply requirements. With the surge in demand for essentials, businesses should understand their
PAGE 9
ONSET OF DIGITISATION LAQSHAY GUPTA, SHAHEED SUKHDEV COLLEGE OF BUSINESS STUDIES, BMS-1
If there were any prevailing uncertainties regarding
Digitization aimed to bridge the gaps left by
digital media adoption for industry persistence, the
compulsory lockdowns and regulations for public
novel virus has quelled them. In a contact-free
distancing.
ociety, most dealings with buyers and employees are
computing, we do not have any means to job, store,
taking place through digital platforms. Working
university, etc. Digitalization is preserving society
virtually is the sole means to remain in the industry
and
through
hindered
epidemic. As the maximum of physical locations is
movements with the unusual abnormality. The
close down, customers switch to e-commerce to
system is like either proceed with digitalization or
fulfil their necessities, including those who hesitated
undergo misery. This digital requirement is not
earlier. Companies are integrating the corporal with
unique; it has merely been drawn into great
the digital to deliver to their consumers. Integration
emphasis. Preceding the outbreak, a systematic
of physical and digital means is more significant
approach for the transition of the economy towards
currently than previously.
ordered
closedown
and
keep
Lacking
digital
industries
floating
equipment
throughout
and
the
digitization was already being followed. Recent occurrences have stimulated the prototype, as
Organizations and associations of all types are
reflected by the substantial switch in expanding
working through digital platforms to keep alive and
enterprises' digitization. Moreover, this is simply the
get a competitive advantage over others during the
onset. The outbreak is an assessment for companies
epidemic. Industries concerned with health and
that
digital
fitness has switched to conducting online courses.
modification and presently discover themselves
Nearly every academic institute, from primary
severely incompetent.
schools to institutions with advanced courses, have
have
been
hesitant
to
adopt
moved to online lectures. Big corporate meetings During the pandemic, the globe has, by condition,
and mega exhibitions are conducted digitally. The
pushed
is
New York Stock Exchange has shifted wholly to
presently the most powerful means to restrict the
digital trading. While few corporations will switch
extent of the infection. Like anything that depends
back to their conventional norms when the situation
on community meetings, our lives' maximum virtues
gets normal, the rest may go for a composite
are changed to provide for the coronavirus's threats.
strategy because they realize the advantages of
into
solitude.
Maintaining
distance
PAGE 10
digitization. Part of the public-health structure has
Several enterprises are relatively hesitant to release
switched to digital means to soothe quite the
funds in the present surroundings of suspense and
distress
coronavirus.
anxiety. At the same time, digital adaptation is
Teletherapy enables patients to receive medical
frequently regarded as a significant beforehand
guidance and recognition at the residence, so they
investment in abiding outcomes. Few of the great
do not require to visit the doctor's clinic. Production
healthy adaptation programs begin with low-cost
through 3D technology is being used to accelerate
models and insufficient supplies extended once the
the generation of essential medical equipment like
abnormalities
Personal Protective Equipment. Before any validated
outcomes are compelling.
compelled
by
the
novel
are
hammered
out;
results
and
medication and promising vaccine, the proper prophylactic
medication
is
communicating
information.
Appropriately accomplished, digital modification can be self-reliant and self-sufficient, with each cumulative
advancement
reimbursing
for
the
Digital detection has already been adopted to
following branch of the journey, and you can
restrict the expanse of coronavirus effectively. Both
increase your savings. Preceding slowdowns and
the technology and innovation are years old but
stagflation demonstrate that regulating expenses by
have strived to attain adhesion in the Western
enhancing functional efficiency—a job for which
nations where beliefs on intimacy have been
technical
restrained. While some nationals are inclined to
beneficial in nourishing business operations when
swap personal liberties for the public-welfare but
the economy is in turmoil than the conventional
there may be additional tolerance around data
reduction of expenses. For instance, corporations
compilation moving ahead. The Covid-19 supported
that depend primarily on labour cuts to regulate
as a universal examination for the efficacy of these
expenses solely have a possibility that they will not
technological solutions, several of which will be
move into the lead. In contrast, corporations that
long-lasting attachments and usher to permanent
concentrate on functional efficiencies over labour
modifications for various companies.
cuts have better chances to sustain and withstand
solutions
are
flawlessly
befitted—is
breakaway accomplishments. Many nations' economic condition is currently embroiled in a downturn, which may survive the
The greatest cost-effectiveness trick is artificial
recent tide of the epidemic. Several institutions may
intelligence. With the adoption of automation
be tended to economize on their digital adaptation
programs, Return on Investment is acknowledged,
programs as a component of an abatement plan. A
forthwith
decent expense deduction strategy concentrates on
expenditure(investment).
cutting off the fat without clipping the enterprise's
adoption
vital components crucial for enduring existing tiers
programmed categories of the task to lessen the
of operations. If we see an institution as a human
time taken by labour on expensive manual jobs,
being, then digital media's adoption strengthens the
hence allows an organization to allocate the
institution's backbone. Curtailing digital adoption
resources to some other place. The automation idea
actions
is that the same task is accomplished quickly and
in
this
emergency
will
considerably
jeopardize all-around enterprise health.
compensating enables
for
the
beforehand
Automated
organizations
to
system distinct
with limited errors, while personnel resources can be re-allocated to critical jobs or plug significant holes.
Nonetheless, it may appear counter instinctive, and
Besides, intricated machine instruments can be
the pandemic is an opportune moment to risk
employed to specify and deal with unexpected
digital
waste.
adaptation.
Instead
of
holding
digital
modification strategies, institutions are required to
p
set in motion with them. It should not be exorbitant.
PAGE 11
The reinvention of businesses is not frequently an option. Multiple corporations encounter wrecking economic fallouts from the epidemic, either due to supply chain effects of mandatory lockdowns and a substantial withdrawal in customer spending is all of the above. Customer permissive producers and dealers, petroleum and oil enterprises, and the tertiary sector are among those sections that have been worst hits. To circumvent these calamitous income losings, these firms have no alternative but to switch priority to their company's dominant digital platform or prepare a larger pivot to a digital enterprise prototype. However, there is a comforting prospect that the modification brought in out of urgency could come to be permanent pillars of the industry that enable it to prosper skillfully, far away from the outbreak. There will be new normal, and the novel virus is eternally restructuring how we survive and operate. Many of the aspects formulated during the pandemic comprising mass adoption of digital solutions will survive the epidemic, agreeably after limitations on movement are ripped off. To remain
in
the
competition,
institutions
must
acknowledge these developmental transitions and fulfil arising consumer needs. Smart companies are now
concentrating
on
consolidating
emerging
analytics to take out intuition from their consumer database and proceed with inner and outer data combination efforts to create a more comprehensive view. Digital modification is more vital in this emergency. Nevertheless, that does not imply it will be as exact as it did before the epidemic. Digital inventiveness may
require
to
be
re-prioritized
based
on
applicability in the present surroundings. Unusual difficulties and chances may be revealed with more significant urgency. For a few industries, the impact of turmoil may be so huge that the enduring forethought will have got to be repaired. The requirement
is
to
proceed
with
examining,
innovating digital modification and automation at both first and foremost. With the careful approach, businesses can eventuate out of the pandemic as more powerful, more effective, and customeroriented than ever.
PAGE 12
OUR INDIA WITH ‘VOCAL FOR LOCAL’ RITORIDDHA DASGUPTA, INTERNATIONAL MANAGEMENT INSTITUTE, KOLKATA (IMI-K)
By ‘Vocal’ we can understand the voice which is
The goal can be achieved very systematically as India
coming out from our inside. Rather we often refer it
is one of the nations who has produced ‘n-number’
as ‘from the core of our heart’. So, are we actually
of entrepreneurs and philanthropists such as Mr
signify the same which we commonly refer to?
Dhirubai Ambani, Mr JRD Tata, Mr Aditya Birla naming a few. In recent times, Mr Ritesh Agarwal,
There lies the big question!
Mr Avelo Roy and the list continue. All the budding entrepreneurs required immensely to support the
As per the burning topic we have found that our
respective state and central government to expand
Hon’ble Prime Minister Mr Narendra Damodardas
their horizons and visions to do those jobs that are
Modi had stated the ‘popular’ phrase to rejuvenate
not yet done, with a completely innovative and
the people India, whose main highlight is to reduce
holistic approach that most of the common people
unemployment as much as possible despite the
ignore.
pandemic scenario. If the phrase or its true essence can be put into reality, then undoubtedly, India can
Let us now take a practical illustration.
go to the top. But why and how? ‘Bollywood Music’ is commonly stated as “The Yes, it’s possible. India is the 2nd largest country in
Imitator’s Den” for a long time. But the negative
the world with respect to population. It can be her
stereotype can be changed as the Indian Classical
biggest asset and strength if proper guidance is
Music as well as the Indian Folk songs are world-
given without making ‘cheap’ discriminations and
famous which bears the strong and rich culture of
corruptions. Being Citizen of India, the respective
India which can be implemented in the modern
authorities and the mass of India must understand
songs with of course a bit of innovation without
and imbibe honestly that the nation cannot grow
doing more and more “Recreations/Remixes/Re-
with so much of corruptions and scams in almost
editions”. Eventually, that can give rise to more
each and every sector.
employment opportunities in the music industries.
PAGE 13
The big Indian music labels always try to remake the
We, The Citizen of India, thereby need to be
old popular songs that already did a good business
optimistic and hope for the best reminiscing the
globally for the albums. Rather they prefer not to
famous words of Rabindranath Tagore:-
make the original creations (tracks) mostly with a view that if they do so, the song(s) may not be as popular as the old popular songs where another
“If you cry because the sun has gone out of your life,
recent trend for the same is the YouTube views (in
your tears will prevent you from seeing the stars.”
Millions or Billions). Here, we can really find that ‘quantity matters over quality’ where a lot of fresh and talented artists feel the pain of depression and could not get the opportunities to come in the limelight showcasing their talents. To be more specific, the Film & Entertainment industry creates an assortment of multifarious sectors and perhaps the biggest area to promote goods and services. On the other hand, “Make In India”, “Skill India” etc. campaigns need to implemented more scientifically at a faster rate to cope up with the current economic scenario where Recession is officially declared in the nation. Another
point
that
should
be
taken
into
consideration is that ‘Vocal For Local’ campaign can be more easily implemented if the so called ‘Celebrities’ of different fields endorse it and promote it for their motherland. It can be more acceptable to the common mass through those means of publicity as in India, the common people overall treats the Celebrities almost like God and always try to follow them, whether they are from Sports or Films or any other creative environments. Lastly, the Government along with the NGOs should take more and more initiatives to literate especially the BPL cardholders and the major rural population who are yet to receive the light of education in the 21st Century and cuddle them more as the famous concept “Survival of the Fittest” is still applicable in the society. Then only the motto “Vocal for Local” can be fruitful in the actual sense.
PAGE 14
THE RISE OF D2C MODEL SARTHAK DAVE
Right from our High School Days, we have been
However, the D2C model gained steam in the US
introduced and taught various business models B2C,
during the dot com bubble but fizzled out soon. In
B2B, D2C etc. So what’s the hype around them and
recent years, however, there were striking examples
how do they matter? The answer to this lies in the
of various companies and brands from diverse
fact that one of them has the potential to skyrocket
industries successfully adapting to the D2C Model,
and become a regular feature for e-commerce and
especially in the west.
retail brands. This shift could fundamentally change how businesses operate, and supply chains work.
Redistribution challenges, absence of retailers to put
Yes! We are referring to the D2C Model here. So, for
your brand on the ground and generating a
starters, what actually is D2C?
substantial online presence backed with revenue growth without compromising on profitability have
D2C stands for direct-to-consumer. Meaning, a
resulted in few success stories in this model.
business produces a given product in its own facility
Nevertheless, the unprecedented corona crisis has
and then distributes it within its own channels.
led to a new wave of enthusiasm and optimism for
These channels may take a form of an e-commerce
the current D2C players. The reason? Well, the Covid
platform, social media and/or a retail store. What
19 has put globalization at crossroads, and more
this essentially means is the there are absolutely no
protectionist measures are being implemented by
middlemen involved!!
countries who want to protect domestic and small businesses. So this could ensure some relief from
The idea or the objective is to practically remove
giant MNCs, but it is a double-edged sword because
resellers, producers and other companies that would
access to foreign markets where they could use
otherwise come into the picture before reaching the
more scope for profitability/revenue growth is
final consumer. Having understood what D2C
curtailed. Having said that, there are still factors that
means, let us peak a bit into its history to gain
explain the fresh optimism regarding the rise of
insight. Before the internet revolution, it was
direct to consumer models.
practically impossible to imagine a D2C model playing out successfully, especially for a large scale
The D2C (direct-to-consumer) market has been
business.
growing rapidly, with double-digit rates for several
PAGE 15
years. It is projected to maintain a further 19.2%
Greater
growth in 2021.
intermediaries,
profit
margin. brands
are
By
eliminating
able
to
reduce
distribution costs and gain greater control over This is yet to hit the peak though. Brands are
their profit margin in return.
beginning to see the benefits of building new direct
Enhanced
sales channels with their consumers after years of
relationship with the customer returns to the
watching the boom in online and mobile e-
brand,
commerce shopping. At the same time, we are
experience chain: from website to personalized
witnessing a Retail Apocalypse; with thousands of
messages or product delivery.
physical retailers that have closed since 2019 (more
Total control of the data. Maintaining a first-rate
than 9,300 stores and chains did so in the US alone).
customer relationship means having access to all
The superdigitalisation generated by the COVID-19
data in real-time. This allows brands to identify
crisis will affect many of those who don’t accelerate
patterns, trends, needs, preferences, and know
their direct-to-consumer, Online-to-Offline or other
much better their users' tastes.
channel transformation solutions in the face of new consumer habits.
scope
allowing
for
Personalization.
control
over
the
The entire
The possibility of digital-first marketing. Brands are entering the field of digital performance, and starting to get global control of all channels,
This though, is not enough a sneak peek into some
regulating their branding and conversion efforts
reveling data by Scale fast on Consumer Behavior is
under one funnel and finally closing the circle so
a testimony to the fact the D2C model is only going
that their communication is 360º once and for
to expand in the near future.
all.
61% of consumers would be willing to share
So what lies ahead? Challenges galore, opportunities
more information with brands if it would allow
galore…
them to have a better shopping experience. 54%
of
consumers
expect
to
receive
a
The new generations will play a fundamental role in
personalized discount within 24 hours of the first
the growth of D2C. Gen Z and Gen Y are more
contact with the brand.
environmentally aware than ever. They are looking
51% of consumers see it as vital to receive a
to commit to brands that are greener and more
personalized experience through the brand’s
sustainable and demonstrably socially aware (and
various digital channels.
contributing, of course).
26% of consumers believe that improved security and user experience on the payment gateway
Those
facilitates their consumption at D2C.
transparency throughout their business strategy
For at least 22% of consumers, having the option
(production, supply chain, supplier relations, etc.)
of same-day-delivery becomes an important
will, in the long term, capitalize on that trust and
purchase decision.
credibility with much greater probability. D2C allows
brands
that
position
themselves
with
companies to have total control over these factors, Many
other
studies
indicate
similar
trends.
and at the same time, a greater capacity to prolong
According to the Direct-to-Consumer Purchase
this positioning without friction throughout its
Intent Index, more than 80% of end consumers are
journey.
expected to make at least one purchase through a D2C brand within the next five years. So what explains the rise of D2C? .
PAGE 16
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK snc@iimrohtak.ac.in AKANKSHA LAWHALE AMRISH RAI MEDHA WAGH SAURABH AZGAONKAR TANVI RANE TEJASWI NETTAM VARIS KUMAR KALIA ANKIT PALIWAL GARGI GARIMA KUMARI KRITI SETHI MADHU PRIYA MACHADI PARNIKA SHARMA POOJA CHAUDHARY RASTRA KUNWAR MAURYA RUDRAJIT BANERJEE FOLLOW US ON: DISCLAIMER: THE VIEWS AND OPINIONS EXPRESSED IN THIS MAGAZINE ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THE OPINION OF THE STAKE HOLDERS OF IIM ROHTAK