A week ago I met my ex-boss at the firm, I used to work with. Over the couple of hours of chit-chat we reminisced about close to 18 months we spent together at the firm. We worked upon a single consulting project for a UK Utilities major, who wanted to know the reasons of doubling of the customer call volume (a major cost center) within a year.

The project which started in 2007 continued through my 22 months of work experience and is still continuing (information from my ex-colleagues). In 2007 when the project started the billing per FTE (full time equivalent) was close to £100/hour. The rate was fixed initially with subject to revision every year. Till 2009 rates continued to be the same. There wasn’t even any discussion with the client about any increase, as told by my boss. We were blessed to have angel-like clients and during the downturn, probably our company didn’t want to get them offended by even a mention of consulting fee increase.



At the same time, upon compensation benchmarking our company fell through the ranks. However they had to provide increase to middle and higher level management, fearing their attrition. By 2009, they finally did benchmarking for lower levels too, though a bit unwillingly, my ex-colleagues said. But even then they didn’t increase the fee for their old clients. So, even though inflation was bleeding everyone in India to death (owing to execution of recommendations by 6th pay commission), they continued to receive same fee rate between 2007 and 2010.
The case mentioned above reflects some important malaises of consulting industry.
The first, Compensation costs usually cover 2/3rd of the cost base of an average consulting firm. Universal pay increases therefore have worst impact on cost base of a consultancy firm. A manufacturing firm on the other hand wouldn’t be affected to that extent as the primary cost centers are material procurement and production processes.
Secondly, profitability gains through outsourcing/off-shoring have already been exploited to near maturity levels. Thus revenues and bottomlines can be enhanced only by scaling up the business, which of course is a tough task as market optimism is still to reach the heights it enjoyed earlier. Businesses tend to procrastinate the costs incurred in professional consulting. With lesser scope of new business, companies are not in a desirable position to charge higher fees from their current clients, at least for some time.



Thirdly, the industry is striving hard to retain talent. From my personal experience, people leave their jobs even if they receive salary increment (if they get a better work opportunity). In such case their increased compensation packages increase their bargaining power in the firm they apply for. Moreover continuous increase in employee salaries, without corresponding increase in revenue and profit (as explained in second point), would be impossible without shareholders agreeing upon taking a cut in their returns on investment. Thus companies often opt of “Virtual career progression”. This means employees receive progressions/promotions in their designation but corresponding compensation increases are either postponed or phased-in gradually over the course of some time.

Higher attrition rate further presses the pedal of need to increase the moolah. All these factors leave very limited choice with consulting firms. Either to develop niche capabilities to charge premium fees or look to diverse. In either case the growth desired requires to disturb the Pareto optimality of the industry. i.e. gain of one firm would be achieved at the cost of another. So while economy revives from the downturn, the consulting firms might have to wait a bit longer for demand for consulting services to rise.
In Indian context, firms have still not been very receptive of employing consulting services. But the change of mindset and better recovery of Indian market compared to west, the consulting industry is also pinning hopes on the rising awareness among Indian firms about benefits of professional consulting. The market may not be very attractive in terms of margins initially but the firms might expect to gain a lot on scales.

When I clicked on the advert by Reckitt Benckiser, which appeared on the right side of by FB window, I thought it would be just one of hundreds pages I "Like" and never visit back. The page I am talking about is THIS

But just ten days ahead, my Google Chrome browser has always a tab opened named PoweRBrands on Facebook.



For those, who have no idea what I am talking about. PoweRBrands (PB) is a facebook application/game. Once a person installs the web application, she becomes a virtual employee of Reckitt Benckiser (RB) and starts her career with the designation of "Executive". Every day her inbox gets some tasks, solutions of which revolve around giving weightage to resources in her hand to address a marketing problem. Based on the accuracy of her results, she gets points and gets promoted/relocated at intervals.

My current designation is Associate VP and I am working out of Rome! :)



In my one of the previous posts about Lateral Marketing at RB

The question arises when RB doesn't market its name while selling its products, what's the purpose of coming up with a RB Facebook page and a game application. Are they trying to establish the brand RB among its potential consumers (considering now days, almost everybody is on Facebook)? Are they doing it in contradiction of their marketing strategy of putting product brands in spotlight rather than the group's? Well it's a judgement made too soon.

RB has, in fact, done brilliantly in coming up with an idea by which it can attract prospective employees. A person playing the PB game, gets to know about what marketing issues arise in an FMCG company and what's the ideal way to deal with it, as recommended by RB. Though virtual, but seeing the results of the decisions made instantaneously through the experience points or promotions gained, keeps the person way more than interested. To add on the lighter side, one can get the cash (alas! virtual again) by allotting tasks to other FB friends cum PB players. Then the cash can be used by her to design her office.

The game on the sub-conscious level makes one realize that how fit is the person for RB way of marketing. And if everything goes well and the link at the PB game page named Careers@RB comes into picture.

The target group for the game are the fresh/experienced MBA graduates, who will find the game engaging if they have even a little love for Marketing not just as a discipline but as a career.

Who said LinkedIN and Job Websites are the only channels of attracting talent. Facebook has just been exploited. I am pretty much sure, very soon many other companies would be following the suit.

It's been long since I last typed in a post. I kept on publishing in my second blog Everything though.

Maintaining two blogs at a time is one serious big task. When I heard from fellow mates, that they were supposed to write a blog in CB followed by some others who had "Slowdown's effect on retail marketing" as their mid-term question, I was reminded of my Lateral Side blog.

I will strive my best to keep it updated.

Cheers...comments are welcome!!

I was talking (chatting rather) with one of my school friends, Nishant (name changed) on facebook. He is going to start an online venture with some partners about a one-stop entertainment website. To brief about it, it will help people catch up with everything in the world of music, movies, comics (some people want me to call them graphic novels) etc.

Nishant, is one of the new breed of entrepreneurship who realize the potential of internet to be exploited monetarily (of course they have passion for the cause in the first place) even after the dotcom bubble burst of 2000's.

So how has the scenario changed over the years from being cautious to experimentations and practical execution?

It's been possible through a revolution called "Social Media"

For records Facebook claim to have more than 400 million active users, a chunk belonging to the youth and earning people. Having just pipped orkut in the numbers, latter also has a huge reach, especially in Latin american countries.

Social media has thus come up as an attractive destination to start and grow your customer network.

Another of my friends has started with online venture called FlowerAura, a website for flower, gifts and cake delivery. He too is working out possibilities of social media like Facebook to obtain leverage for his business. To start with he has got FlowerAura fan page. Next he is looking to create an FB application to interact on a more regular basis with the possible customers, the users of FB.

Yet another friend of mine is a social media expert and consultant. He plans the social media exposure during product launches and brand creation.

Power and reach of social media is breaking self-created records everyday. We just have to watch out for the sustainability factor

Past couple of years has seen a sudden rise in B2B (Business to business ventures). And this one too seems to be a Jack if not an Ace from the pack of cards.

Barter as most of you would know means to exchange goods/services for goods/services without involving the any need of currency exchange or even existence. The practice was followed expansively to carry out trade in almost all ancient civilization before people came up with the concept of Money

Still today mostly in Rural India, barter transactions are prevalent and thus often skip getting registered in GDP of the country.

All said and done, we (I and a friend of mine) tried to analyze the potential and risk of this venture called Back2Barter.

The website of the company lays stress over their potential to enable firms to transactions without hitting their cash flows, which sometimes sounds too sweet to believe.



I recently happened to peek-a-boo over this entrepreneurship venture called Back2Barter.com

To make it sound more plausible, let's look at the few scenarios.

Firstly consider a 5 Star Luxury hotel. Now hotels do have a seasonal occupancy rates. Suppose in a season when occupancy rates are low, the hotel wants to upgrade its existing dining tableware. The hotel would be really interested if their vacant rooms could be bartered for their requirements. In other words they could pay for their furniture requirements by providing vouchers for stay in their vacant rooms. Now, who will be interested to buy these vouchers? Definitely not the tableware manufacturing company. But probably some holiday planners. So if the mediator, in this case back2barter, has a network that is expansive enough to find use of goods given on barter. The tableware company on the other hand would be interested to get raw timber for its inventory. Again back2barter will come in the picture.

A more relevant scenario would be the holiday gifts given to employees. Suppose there are two companies, one manufacturing Case rolls and other Cutlery Set. With a barter between them they can give each other's product to respective employees as gifts. Thus this reduces the need of cash payment needed to buy/manufacture the gifts. To find such complementary parties b2b will again come in the picture.

Ironically, though understandably :) , Back2Barter charges a transaction fee (in cash) for its services.

Seems like a good business plan!!

Time for the risks then.
1) First and foremost the concept is easily imitable and doesn't require very special skills apart from networking.
2) Second issue is regarding physical transfer of goods; the expenses incurred and liability for risk covers in case of any damage in due course.
3) If this really works out for the companies, they might not return to the intermediary (b2b) and contact the other transacting party again.
4) There is a strong possibility of network deadlock, because a product bartered by a company may not actually get bartered because even after series of options explored among the b2b network, the product desired by the company in exchange couldn't be found. Would b2b risk buying it on credit then? That would be interesting to see.



Nevertheless we do feel the concept is good above all it gives you freedom about your inventory levels. That would include raw materials, semi-finished and finished goods. Whenever you barter, your sales would also increase by an equal amount!!

For imitators, maybe it’s time to wait and watch and then learn from the mistakes before taking a dip in the river, carefully.

My last post dealt with how different RB has been in marketing its brands compared to other FMCGs. Through this post I would try to put in words what it has been like interning, in marketing, in Delhi and in summers.

I landed up in Delhi on 28th March. Still reeling under back to back night outs for the end term examination, it felt great that I had around 7 days before my first day of internship which was scheduled to run from 5th April.



The day arrived in no time. The first two days were supposed to be orientation and ice-breaking sessions at corporate office of Reckitt Benckiser (RB) in Gurgaon.

Of the 17 interns, my work-ex of two years somewhere belonged to a minority. As expected most of my colleagues for these eight weeks are freshers. A stark difference between a fresher and a work-ex guy is heightened enthusiasm of first work experience and expectations from it by former.

Work-ex guys on the other hand chose to play cool. B-)

For the first two days we met the people from the leadership team in India viz. marketing manager, brand managers, supply director, media manager etc. We got to know how are power-brands of RB produced and packaged. We were briefed about our project in few lines and we were given contact numbers of our guide, the person under whose guidance an intern is supposed to carry out the project.

The effort put in by interns is directly proportional to the relevance of the project to the company and subsequent interest and involvement showed by the guide. I consider myself fortunate enough in this regard, that despite having leading a tough life among sales numbers and benchmarking targets, my guide took necessary time to elaborate on what was desired from my project and what should be the plan of action.

My project deals with Shopper's study about what parameters do affect shopper's buying decision when they come to an over the counter retail store. I was sent in the field straightaway on the first day to understand RB ways of distribution network. I personally am more comfortable with my pair of jeans and t-shirt but roamed in Formals during these visits, which I considered a bit uncomfortable considering the 43+ temperature that Delhi was reeling under.

But the experience was enriching. It let me understand the market dynamics which are mostly missing in the marketing text books. e.g. we are taught about product visibility being best at chest level shelves. But in reality in OTC stores, the shopkeeper decides where he keeps your product, until and unless you make some 'special' agreements with him.




One forgettable incident happened when I was almost thrown out of a store in Defense colony. The store owner simply didn't like the idea of a B-school graduate, who wasn't given a company i-card, "troubling" his customers in or outside his shop. :(

Moreover the informal interactions shared between sales representative and the store owner is vital. Cracking jokes, sharing life's little nothings can get you enhance the numbers on the order book. The sales guy I was accompanied with, transformed a Rs 1500 order into Rs 2800.

I also found that most of the business that these stores are doing is OTP (over the phone) and home delivery. Of the stores I visited the percentage of total sales through this channel ranges from 30% to 80%.

The second stage of my project required me to create a questionnaire to gauge the factors affecting purchasing decisions by the Shoppers.

Now it is not a child's play to get a questionnaire getting filled by a mother in summer sun with her kiddies giving him all the trouble they can handle. I had to walk with some people to the parking lot to get the questions answered.

Being from IIM, life is a little less tough, with people tending to listen more often than not.



The days on which I have to go to office as well as Shoppers's survey, I carry my jeans and T-shirt in my car and get changed, once I am finished at the office and head for the field. :)



Once on the field I usually gulp a lot of Nimbooz and Minute maid lemon, as without it I can't survive this Delhi heat.

Let's see how it develops further. :)

I am currently interning with Reckitt Benckiser.


For those who are wondering what is that, it is an FMCG company that bears brands like Dettol, Mortein, Easy off Bang, Harpic, Lizol, Colin, Cherry Blossom, Vanish, Air Wick, Veet, Finish, Disprin, Strepsils to name a few. All of these brands are either first or second in the category they are present. Interestingly RB is second largest media spender in FMCG category after Unilever. While typing in this post till now I have already watched more than six advertisements of RB products. :)



So the question pops up, why still people don’t know about it. Most of the brands mentioned above have their own websites.
Why does the advertisements for above brands don’t display Reckitt Benckiser logo at the the end as done by other FMCG majors viz. Unilever, ITC, P&G, Colgate-Palmolive etc.
The media manager has a very interesting explanation to this question and roots its reason to the corporate strategy of the company. They say that a one second airtime of flashing the company logo in a 10 second commercial accounts to 10% of the advertising budget. Now considering the amount of advertisement airtime bought by RB that is a considerable amount and company is unwilling to spend until convinced it does any good to the sales.
The company feels people chose to buy dettol, mortein or cherry blossom for the brands they are and attributes they possess. The company believes Brands and People are its pillar of strengths.
A counter argument that can be given usually is the parent company’s logo if known to people, it becomes easier to launch new products. However a counter-counter argument could be look at the product launches done by RB. Veet that was launched in 2006 moved from nothing to market leader in less than three years, brushing past Fem and Anne French (this would make more sense to our female counterparts). Vanish-relaunch and Easy off bang have been hugely successful too. The 10% saved on creating parent company brand is used aggressively at the time of brand launches.
Moreover the company believes that until they are sure of having exploited full potential of their products, they don’t want to do any further product launches.
But there are some fall-backs which even RB acknowledges. eg. lack of pre-awareness about RB in B-schools sometimes may have made them pseudo-lesser attractive destination compared to Unilever or ITC. At one occasion they needed to introduce themselves as “company that makes dettol”.
In a nutshell that explains the company’s believe in creating Power Brands, as they call them, instead of an Umbrella brand of RB. A strategy that can surely represent Lateral side of FMCG marketing. :)

My current blog Everything, I found isn’t about everything after all. Off late it has become more as a doorway to creativity. I find it tough to align with it, professional topics related to politics, business, media, marketing and consulting. So this blog provides me with that platform.
In here I would try to amalgamate my writing instinct with my lateral views about what’s happening around.
Happy Reading!
:)