GI Diaries : 8 steps for Effective GI Branding

Many people in India have heard about Chanderi Sarees, Darjeeling Tea, Bikaneri Bhujiya, Mysores Silk, Jaipur Blue Pottery , Naga Mircha, Channapatna Toys and  Kota Doria sarees. But how many have heard of Bastar Iron Craft,  Kannauj Perfume, Khasi Mandarin, Nanjanagud Banana, Aranmula Kannadi and Kasaragod Sarees? The commonality among these is that all of them are part of the more than 230 Geographical Indication (GI) products registered in India. The difference is that while the first set of products are widely known and purchased beyond their home states and in some cases even outside India, the second list of products languishes in comparative anonymity known mostly in the limited region where these are produced/ manufactured.

Very simply put, Geographical Indications (GI) are signs that aid in the identification of a particular product coming from a specific geographical location possessing certain unique qualities or reputation due to such origin.

India is a country with varied geography and  diverse traditions and skills, as a result of which there is a plethora of geographically unique products across agricultural, handicrafts, manufactured goods and textiles. Protection and promotion of geographical indication products helps nurture and strengthen key skills and traditions while at the same time supporting and developing entire communities.

Over the past decade or so significant steps have been taken to increase awareness for GI amongst producers/ artisans etc, leading to registration of a large number of GIs. However, the logical follow up of leveraging the GI registration as a well thought  out  marketing strategy  has not been done in most cases. Further in many instances the producers and artisans are not well organized and have very little access to information and resources.

While production capacity and market potential vary across the different products, there are some common steps which need to be taken to leverage GI as a branding tool. These are outlined below:

1)      Proper organization structure and control

o   GI enablers should be identified/established for each GI. The GI enablers could be an association comprising representatives from producer groups, traders, government and NGOs, or it could be a government body/ NGO active in that field.

o   Such a body, should be set up as a corporate structure with formal management systems.

o   The GI Enabler cell should function as a coordinating body, channeling all marketing efforts, monitoring quality compliance, helping the community avail relevant government schemes and ensuring speedy registration of all genuine producers/artisans/ farmers under authorised users.

2)      Development of a GI as an Endorser Brand

o   A small seal which says “original” and gives the GI number can be introduced as an easy identification and assurance mark common to all GI products.

o   The GI number on the seal would be the unique number of each authorized user so the product can be traced to its origin. This will also make counterfeiting difficult.

o   A single mark would be easy to communicate at a broader level to educate consumers and create awareness about the GI concept.

3)      Well recognized logos and symbols

o   Create and register logos for selected GI products with moderate to large market potential to provide them a distinct visual identity for easy recognition and differentiation from spurious or competing brands.

o   Strict guidelines need to be specified on use of the logo.

o   Examples- In Kota Doria Sarees the logo is woven at one end of the saree. In Arnamula Kannady mirrors, a hologram for the logo is placed at the bottom, while for Kashmir Pashmina special type of secure authentication fusion labels are attached to the product.

4)      Improving production process

o   Set up Common Facilities Centres (CFC) in each of the hubs for identified GI products, as has already been done in a few cases. CFCs to have space and provision for pre/post processes linked to production. Expensive machines required for certain processes can be provided at CFCs to be used on chargeable basis.

o    Provide technical and other expert assistance to producer groups to improve efficiency, productivity and quality. Examples of such interventions include upgradation in loom designs/ introduction of metal beams at Chanderi, mechanization of pre-processes at Chennapatna, mobile fibre extraction machine for coir and improved variety of organic Navarra rice seeds.

o    Improvements in product/packaging and quality through R&D or interaction with experts

5)      Strict quality control and tracking

o   A well established quality control process should be made a pre-requisite to filing the GI application.

o   Checking quality of production can best be done in the form of self audit by producer groups but in addition a further layer of sample checks should also be added by designated quality team- which could be a body of representatives from producer groups and government and technical experts or only government or 3^rd party certification agencies.

o In exhibitions organized by the government or government bodies, that exhibitors who claim to be selling handloom/ handicraft/ GI products should be verified and documents / certifications checked to prevent misrepresentation of powerloom/machine made products.

6)      Investment in building brand awareness and market expansion

o   Market Development Funds should initially come from the government and later can be supplemented by contributions from producers.

o   Awareness about the GI concept and why consumers should look for the GI seal, needs to be built through offline and online campaigns

o   The GI brand name and logo needs to be registered in key international markets for select products.

o   Database on exporters and producers for specific product categories need to be accessible to international buyers. The tracking system for checking GI holder/authorised user details should  be highlighted for international buyers.

o   Websites for each specific GI product category, need to be created

o   An Umbrella GI Portal should link all individual GI websites.

o   Mass media campaigns should be designed to reach the target segment in identified markets where the GI products have significant and / or growing sales.

o   The State government should identify 1 or 2 GI products for focused promotion for a two year period.

o   Each state should organize one annual GI focused exhibition/ buyer-seller meets for all GI products in their state.

o   State as well as Central Government need to ensure adequate participation of existing GI producers/ authorised users in key National Exhibitions.

7)      Focus on building customer engagement and brand associations in addition to awareness

o   The GI enabler cell needs to develop catalogues for showcasing their range sharing its legacy and giving information about its unique features.

o   Key influencers for different categories can be identified like chefs for agricultural/ food items, top fashion designers/ models/ film stars for handlooms and garments, well-known names for handicrafts sector or big buyers or NGOs or famous artistes of that state could be leveraged to promote the cause of different types of artisans and their craft. This will have a significant impact on the aspirational as well as quality and credibility associations of the GI brand.

o   E-commerce provides needs to be  leveraged much more as it has huge potential to enhance reach and reduce the layers of middlemen.

o   The GI websites and portals should share personal stories of artisans and their families- these could range from human interest stories of overcoming hardships, or stories around the tradition or community.

o   Tags with artisan names and photos can also be added to each product to create interest beyond the functional appeal.

o   Crafts parks can be used for organizing theme based events/ shows/ exhibitions/ workshops and can also be leveraged for tourism.

  

8)      Steps for legal protection

o  Government Circular should be issued from the concerned State Government informing trader and retailers that punitive legal action will be taken against them if they are found to keep and sell any ineligible product under the GI name of the product.

o   Retailer Workshops -small localized workshops need to be conducted with retailers to create awareness about GI and why they should trade only in products made by authorized users.

o   Leaflets and flyers- can be distributed to trade channel members by producer groups informing them abut legal implications of selling a GI product which is not sourced from authorized users or the specified region.

The Big Burn E-Commerce Game- Sustainable Business?

E-commerce is the buzzword today and e-tailers (or the more politically collect marketplace/ aggregators) are the cynosure of all eyes, the darlings of venture capitalists, the public and very often the media. And all for good reason. After all e-commerce is here to stay and grow, penetration of internet and smartphones is at an all time high and still increasing, and people are shopping online like ever before. However this silver cloud does have a black lining! Though one can quibble mathematically and economically how much is too much, the fact remains that the obscenely high valuations and spends of these businesses do not need a management guru to point out that it is multiple times of what would normally be acceptable as per traditional business norms. One may argue that these are disruptive and market driving forces and therefore traditional rules of business would not apply. Fair enough. But there still has to be some sound fundamentals guiding the business strategy.

There are many issues which can lead us to question the sustainability of this whole new game. But the one which is most telling for me is the use of the term “Burn” to connote the marketing expenditure undertaken by the e-tailers/aggregators et al. When these firms undertake a major advertising blitz, they do not call it ad spend or investment in brand building but instead use the terms “TV burn”, “internet burn” etc. When they offer discounts (which is almost all the time) it is not promotional expenditure but “promo burn”! It is very interesting this use of the term burn and is a very telling revelation of what they are actually doing. Not making a sound investment with a certain expectation of returns but merely burning money to create light and smoke and nothing much to expect in return. The bigger the fire the better to outshine competitors with! Remember how in colloquial language we use the term “burn money” to connote sheer wastage!! You may well question then, is advertising/promotional expenditure a wastage? Of course not? But unwarranted, disproportionate advertising or promotions without a commensurate return on expenditure could well be! In the initial stage of the brand life cycle there is definitely a need to create awareness and incur marketing expenditure to build the brand. It helps to create hype and awareness and gain customers and market penetration. The sales will be low in the initial stage and therefore revenue is likely to be less than expenditure with profits non-existent or negative. But sound business also entails that there should be some proportion and time limit to this revenue-expenditure gap. Further not only should results be measured in terms of absolutes of customer acquisition, GMV, etc, but equally importantly the efficiency of spends needs to be tracked along with incremental gain per additional rupee spent.

The next question is that if short term losses can help expand the market and grow the business exponentially then why is it not a good thing? And further if promotions and discounts benefit customers, why should we question it? Sure, short term losses for longer term gain is a valid strategy but then short term needs to be short term and should not become the default business model. Sure, discounts to customers and rock bottom prices are great for customers but is it great for sound business?

Let us go back to the very fundamentals of business and marketing strategy. Businesses need to create value for customers and thereby for the organizations and various stakeholders. If value is only artificially created through price discounts without lowering of costs, this value is not sustainable. Consider the launch of Reliance Mobile which changed the entire game and brought mobile telephony at unheard of price points making it affordable to the masses and expanding the market exponentially in the process. the rock bottom prices offered here were a result of an entirely different sourcing, distribution and marketing approach which combined with the immense scale expectations made the penetrative pricing possible and sustainable.  Now consider Kingfisher Airlines which launched a low cost Airline with low penetrative pricing but high value added services. Low prices without back end strategy to lower costs cannot fly for long and nor did Kingfisher!

The aim of the  e-tailers is to get more and more customers and sell more and more and ramp up their gross merchandise value (GMV), but the more they sell, the more would be the losses they make and that will eventually hurt the business even if is someone else’s money. If the e-tailers are able to bring about greater efficiency through their scale and technology, lower logistics cost, build low cost suppliers, change the value chain by eliminating non value added processes, and then as a result of the savings thus achieved they are able to offer significantly lower prices to the consumers it will be a win-win for all. But otherwise, it is only a distortion of the ecosystem artificially kept alive and in the long run it will be a lose-all because it will impact the viability not only of the e-tailers but also of other competitors and manufacturers.  Combined losses for e-commerce companies such as Flipkart Ltd, Snapdeal (Jasper Infotech Pvt. Ltd) and Paytm (One97 Communications Pvt. Ltd) last year stood at $557 million, as per a recent report released by CII and Deloitte Touche Tohmatsu India LLP (Mint, 25/4/16).

In international business dumping as a pricing strategy is frowned upon and countries can legitimately take steps to block dumping (pricing of goods below cost of production). What the new crop of e-tailers/ aggregators are doing is akin to dumping. The aim seems to be to kill competition so that the firm who can hold out the longest amongst mounting losses may survive and once this bloodbath is over, the profits can start but perhaps only for one or two large firms because the smaller ones would have perhaps gone down under by then. What then happens to free competition and consumer choice?

The fundamental goal of marketing is to provide value to the customer. That has to be the focus of the business- how to truly differentiate and create value in a sustainable manner. Doing it better than competition will help create differentiation and preference but killing competition cannot be the sole aim of a “for profit” business. If the chosen strategy is to be price competitive, then lowering cost and improving efficiency has to be the focus.

The recent government policy preventing aggregators from price interference is perhaps not such a bad idea. If we are advocates of market forces, let the market forces rule. Why use  the “burn money power” to distort the market completely. Of course online aggregators like mall owners in the offline world, need to have some say and free hand in promoting their market place and offering consumer promos to drive footfall, but then this cannot be a disguise for a distorted business model! Ultimately only true long term value creation for the customer, the marketplace and the sellers/manufacturers is what will drive the growth.

Marketing of Festivals- Penetration and Adoption across Cultures

Festivals and traditions can be looked upon as products/concepts which can be marketed. In fact this category has seen rapid penetration and adoption across cultures and geographies.  If we look at the Indian consumer alone, the last few years have seen widespread adoption of a number of festivals/ traditions - those which originated outside India as well as those which originated within India but remained confined to a particular region/religion for a long time.

Let’s start with the simple ones first.  The celebration of various days dedicated to different members of the family aka Fathers Day, Mothers Day, Daughters Day and so on, were really took flight as a result of marketing efforts initially spearheaded by greeting card companies to multiply consumption occasions for their products. Gradually it expanded from merely wishing your loved ones, to gifting them suitable tokens of your love and affection, enthusiastically encouraged by a host of marketers offering their products and services at a special discount for the special occasion.

Next, let’s look at the more traditional festivals. Each region in India has their own traditions and festivals and though all of us studied about these in school, we continued observing our own region/ religion’s traditions and festivals in our homes. At best one would wish a friend or neighbour on their festivals or partake the sweets they sent across. However, today these lines between different traditions are getting blurred, at least in the bigger cities.  Non Christian households also setting up Christmas trees at home, and the concept of Santa giving gifts to children is very popular. Many children of non-Hindu families also enjoy Diwali by bursting crackers. The pre-wedding sangeet ceremony of north India has found its way to most households and is now a must have in the wedding functions list in all parts of India including the more traditionally conservative south. The Navaratri celebrations with Dandiya which were earlier confined to the Gujarati Diaspora are now a reverberating social phenomenon all across India.

The festivals highlighted above are those we were already familiar with and have grown up watching either in our neighbourhoods or in Bollywood movies. But even traditions like Halloween which were not much known in India till very recently, and in fact have very little in common with our culture, have seen a rapid acceptance and marketers have taken to Halloween themed events with a gusto!

If we analyze the adoption of festivals, we will find a few common threads- most of these festivals have lent themselves easily to commercialization, with simple homemade traditions being replaced by glitzy packaged offerings which make the celebrations easier to arrange with added fun and easy scalability. Almost all the festivals which have seen rapid penetration or adoption have one or more elements of fun, music, dance, party and gifting. These are occasions which give us a legitimate reason to enjoy and indulge a little bit. Who doesn’t like to party with friends, and who doesn’t like receiving gifts?

 So as soon as the traditional Punjabi ladies sangeet, where the women of the house sat and sang folk songs upgraded to its new millennial version,  where it is not confined only to women and has little to do with traditional folk numbers, it gained popularity because it offered the same fun as a dance party. In fact today the sangeet function IS a big dance party, where you get to dress in your traditional best, dance to the latest numbers with the blessings of the elders and enjoy the added fun of parents, unclejis and auntyjis all joining in, in gay abandon. As it evolved, marketing opportunities and expenses associated with the sangeet ceremony, increased. So hiring a DJ, booking a dance floor, themed decorations, choreographers for the family members are the minimum everyone does and the more well to do page 3 varieties have the added element of celebrity performance thrown in. While in itself the sangeet ceremony has enough to make it popular, when aided by large scale attractive renditions by Karan Johar and Sooraj Bharjatiya, it is quick to spread its mass appeal. Once the spark is there many marketers of products and services like choreographers, event planners, dress designers and the like, help fan the fire by adding layers to the core product benefit making it an augmented experience.

So it is with Christmas- a chance to party and dress up and open surprise gifts,  and Dandiya- all night fun with social sanction, and Halloween- another excuse to party with a novel theme and an opportunity to indulge in a bit of fantasy and creativity. Nothing wrong with these motives after all festivals are meant to be celebrated and provide a much needed release from the pressures and worries of everyday life. As we say in marketing theory, marketers don’t create the need but can create demand for a particular product/service. The underlying need in this case belong mostly to the category of social needs- the need for love and belonging in relation to family and friends but as the layers add up these festivals also serve the esteem needs of being admired and looked upto by others.  But a key point to be noted here is that the festivals which gain popularity and acceptance are the ones which are centred around the Joie de Vivre. Their key benefits are spreading warmth and good cheer and the joy of togetherness. Those festivals and traditions which are to do with self control or abstinence still remain mostly confined to their respective communities. Christmas is known to almost everyone and now celebrated to some extent by many but awareness of Lent is very limited across the diverse communities in India.

Since festivals are individual and community events, who then markets these festivals? Festivals are not owned by any company or organization. Even the religious affiliation in these cases, have not played a role in their expanding popularity. The interesting thing about the wider adoption is that the festivities and traditions are adopted without their associated cultural or religious significance. So a celebration of Christmas by non Christians, is merely a celebration of the Christmas spirit and has nothing to do with belief in Jesus, and similarity the participation in Dandiya events is a participation in the celebration without a uniform observance of religious significance of Navaratri by all. Those who believe, link their beliefs to the celebrations and those who don’t celebrate simply the spirit of the festival. So we come back to the question of who then markets these festivals, who promotes their penetration and adoption? The answer of course is a multi pronged one. The festival itself is not marketed but products, services, events and icons associated with the festivals are marketed. These in turn add to the appeal and visibility of the festival itself and the festival becomes more popular, the associated activities and scope for commercialization increases and the cycle reinforces itself. There is no organized effort at promotion of the festival per se. No marketing communication is done extolling people to celebrate these festivals, but there is the marketing of related events, shopping extravaganzas, special dresses and gifts, promotion of consumer goods on the  theme of the festival which create and enhance a marketing eco system, enhancing visibility and attractiveness of the festival and helping to increase its adoption across wider consumer segments.