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July, 2001

Marketing

Surviving in Advertising & Communication

By Ravin S. Lama

Messrs. Shrestha & Shrestha, a building materials shop, wrote to their paint stockist:

"We complained to you several weeks ago about the distemper we purchased from you. Please arrange to collect the paint."

The paint stockist wrote to the distemper manufacturer:

"One of our best customers has complained about your distemper and returned it. Please arrange to pick up our entire stock and pass credit."

The distemper manufacturer wrote to the paint stockist:

"We regret the tone of your letter and are not prepared to take back the material. However, our technical representative will call in due course."

The paint stockist wrote to the distemper manufacturer:

"With reference to the visit of your technical representative, please confirm in writing that we can sell the distemper as a knifing filler."

The Director, distemper manufacturer, wrote to the Sales Manager:

"You were right to refuse to take back the distemper, but I doubt the wisdom of sending our technical representative. Write to our stockist to sell his stocks of distemper as a ready-for-use filler."

P.S. Fire the technical rep.

The paint stockist wrote to the distemper manufacturer:

"Orders are piling up for your ready-for-use filler. Please rush through 100 x 4 lb. tins."

The Director, distemper manufacturer, wrote to the Sales Manager:

"The Board has decided to enter the filler market. Arrangements have been made for an all-out advertising campaign in the Press and Television. Please issue a sales bulletin listing the advantages of our filler – easily applied, fine texture, dries quickly, easy to rub down. Mention that it is the only filler in the market available in twenty-four colours."

A few days later, the Director, distemper manufacturer, wrote to the Sales Manager:

"Arrangements for our ready-to-use filler convention at the Grand Hotel are complete. Five hundred of our best customers and the Press are coming. The President of the Master Decorators Association will take the chair."

The Sales Manager, distemper manufacturer, wrote to Mr. B.K. Shrestha of Messrs. Shrestha & Shrestha:

"As a leading user of our ready-to-use filler, we wonder whether you would do us the honour of being a guest at our convention at the Grand Hotel."

Mr. B.K. Shrestha wrote to the Sales Manager, distemper manufacturer:

"Thank you for your kind invitation. I shall be delighted to attend. As you know, we have purchased a great deal of this material in the past few months, and would mention in passing that when thinned down with water it makes a really excellent washable distemper."

The above story to a certain extent describes the political scenario in Kathmandu, which has played a major role in influencing the communication sector.

When the movement for democracy had reached a feverish pitch, I can recall the procession at Lazimpat with the crowds screaming in agonized frenzy, "We want demo-cracy". A foreigner standing next to me remarked, "This KC guy" seems to be really popular. Who is he? For a moment his question had me stumped, when again a chant arose from the masses, "We want demo- CRACY (KC)." I had my answer.

With the advent of "democracy", people expected miracles to happen overnight. The assumption was that poverty would now be over and everything would be hunky-dory. Somebody had done a brilliant PR job on what democracy would do to the country.

The basic fact and the truth however, still remains is that we were and are still not ready for democracy, a much abused word these days. The debate on the pros and cons continues regarding which was better – the Partyless Panchayat system to a fully Democratic polity, particularly with the effect on the communication sector.

Several years ago, one of the exercises we wanted to undertake for Surya Tobacco Company (STC) was the launch of a new brand of cigarettes called "GAURAV" to tie up with the so-called ‘freedom’. In the advertising that was developed, especially a 60-second TV spot, animals and birds were shown running and flying around freely. Sadly, during the research stage, both during individual one-to-one interviews and during focus group discussions, nobody could explain or understand the concept behind the spot. The campaign was scrapped.

The important lesson we learned out of this experience was that the general public had not yet opened their minds to ideas and thoughts, and were still not ready to express themselves, letting themselves be shackled to what they had been taught or believed in. Nothing wrong with that, but in a country which boasts of Lord Shiva the patron god and his famous third eye, which as legend has it, can burn the world to ashes should it be opened, the people, despite ‘seeing’ the current changes and situations, have still not seized the opportunity to move ahead.

One of the biggest scourges of democracy is that it caught us totally unawares. In the media field, it opened up a whole new horizon – private newspapers like The Kathmandu Post and Kantipur who encouraged others to join in the battle for supremacy in print. On the television front we were exposed to a proliferation of TV channels like Star Plus, BBC, CNN, ZEE, Sony, Discovery, MTV and Channel V. An overwhelming change from the staid Nepal Television. Eight FM stations tried to combat it out thanks to a new policy of liberalizations. The Internet and e-mail changed our lives completely. Information has never been so easy to procure. The ‘digital’ age has come to stay – Radio, Television and Printing. It has been a constant bombardment of new technology, not forgetting the latest gizmos now available in the market. All this as part and parcel of a rapidly advancing communication sector worldwide. Here in Nepal we still haven’t felt or noticed that difference.

But have we really been prepared for all this ? Change is inevitable and should take place in a progressing world provided we are geared up to it. Somehow, in the rat race, we got left way behind.

Five years ago, there were over 400 advertising agencies registered with the different government departments, operating in Kathmandu, much more than what Delhi or Bombay would have. Today, of the total number, the serious players registered with AAAN (Advertising Agencies Association of Nepal) is just over 100. Has it been the survival of the fittest? Not necessarily so. Earlier, a lot of agencies enjoyed political patronage – which still happens today. Other than the media rates on an upward trend, some things haven’t changed at all.

In the past, the power of the written or spoken word in the advertising context was not understood, the same scenario exists today. Five years ago, people did not believe in the ‘power of advertising’. The belief is still there today. Advertising then meant ‘Felicitations’, ‘Greetings’, ‘Best Wishes’, ‘Happy Birthday’, ‘Congratulations’, ‘Happy Anniversary’, and ‘Obituaries’. Advertising today, still means the same. In the last couple of years, try and remember any advertising campaign. I can bet, you will be unable to recall more than two or three. Where has the so-called BIG IDEA gone? The Companies who have believed in the power of advertising are the ones who have gone laughing all the way to the Bank. Why haven’t Clients become more demanding considering the competition in the market?

Allegedly, one of the biggest hindrances towards liberalism has been the policy of government bureaucrats in the communication field who change rules on the whims and fancies of individuals to suit their own interests, or that of their Party’s.

A Zen story describes it thus:

In ancient days, it was the custom that when a travelling lama arrived at a monastery, he could demand its hospitality only if he could defeat one of its inmates in theological debate. It so happened that one such traveller turned up at a remote monastery where there were only two resident lamas, the elder one extremely wise, the other a one eyed half-wit.

At the time of the stranger’s arrival, the wise lama was at his meditation, so he was compelled to send his less intelligent brother out to accept the challenge of debate, giving him just one piece of advice: to consent only to a nonverbal debate.

A few minutes after the debate began, the visiting lama rushed into the elder lama’s presence and bowed to the ground, saying that he had been routed in the debate by his formidable opponent and so would like to take his leave.

The wise lama asked what had happened, and the stranger explained: "First I raised one finger to tell him that the Buddha is the enlightened one. To this, he raised two fingers, reminding me of the Buddha and his teachings; rebuked, I showed him three fingers, representing the Buddha, his teachings and his disciples, whereupon he showed me his fist, to tell me that all of these are one realization. I admitted defeat." He bowed once more and left the monastery.

Shortly after, the half-wit came in, and the wise lama asked him for his account of the debate. Heatedly came the response, "That fellow! First, he showed me one finger, taunting me with being one-eyed. So, politely, I raised two fingers, complimenting him on having two eyes. Next, the scoundrel showed me three fingers, rubbing it in that between the two of us there were only three eyes! So I couldn’t help it- I showed him my fist and would have hit him if he hadn’t hurried away!"

The moral of the story is that communications is not always as straight forward as it might appear to its practitioners.

Today, while the rest of the world prepares itself for the next millennium, here in Nepal, we are not landlocked. Just mind-locked.

(Lama is the Managing Director of Stimulus Advertizers and the President of the Kathmandu Toastmasters Club).

Marketing Notes

Newspaper Market

What is the total combined circulation of Nepali language daily newspapers? Different people may have different answers in private. But in the absence of a competent public authority in the style of an audit bureau of circulation, the individual estimates are only 'guestimates' at best.

However, two of the dailies have recently revealed publicly some information about their circulation, on the basis of which some fresher and more accurate guestimates can be made.

Look at a huge hoarding board at Thapathali in which Kantipur daily claims a massive 80% market share. And compare that with a notice Nepal Samacharpatra printed recently in its front page requesting its readers to manage with only 100,000 copies that it could print at present because of technical reasons, though, as the publication claims in the notice, the paper was being printed 150,000 copies a few days before the notice.

Kantipur's claim (which, it says, is based on the survey by an Indian research institution) does not reveal whether its market share is in terms of circulation or readership. But it also claims more than 2.3 million adult readers.

If you accept 100,000 copies as circulation figure for Samacharpatra and assume the combined circulation of Spacetimes, Gorkhapatra and Himalaya Times to be another 150,000 only, that of Kantipur must exceed 800,000 if Kantipur's claim of 80% market share is also to be accepted. Added recently to the list of Nepali language broadsheet dailies is Rajdhani and there already are Nayasadak (tabloid) and Prabhatkalin.

That gives over one million copies of combined circulation per day. It is up to the readers to judge whether that is high or low. But with both of Kantipur and Samacharpatra being printed also from Biratnagar, their circulation figure is naturally to grow.

Equally interesting is the growing race among English dailies. Added to the erstwhile long-time rivals The Rising Nepal and Kathmandu Post is Space time which has recently started publication. And one more in joint venture with some Indian publishing house is reportedly preparing to hit the newsstands soon. Newspapers, and dailies more particularly, represent power, and the struggle for power is already on as Kantipur is now on head-on collision with the present centre of the power, Prime Minister Girija Prasad Koirala, who, in obvious reference to Kantipur, had issued warning against tycoon journalism a couple of months ago. And this animosity in blamed to be the main reason for taking some kantipur officials into police custody recently.

However, the country may have to wait a while to see who actually turns out to be the Rupert Murdoch of Nepal.

Detergent War Unabated

"Power struggle" of its own type is continuing in the detergent market and in the latest development the marketing slogan of Diyo brand of detergent cake has been attacking Mahashakti Soap and Chemicals, the producers of Puja brand.

While Puja is, since long, being associated with the term Mahashakti (meaning super power), Diyo is now associated with the term Super Shakti (meaning again, super power). Going one step further ahead, Diyo's advertisement now also carries a line which reads somewhat like, "It made me forget the last 20 years", which is clearly in reference to Puja's Punchline of "a partner of 20 years in cleanliness".

Surya in Mini-pack

The mini-trend has catched Surya luxury kings cigarettes with its producer Surya Tobacco Company (P) Ltd. announcing the introduction of the premium brand also in packs of 10 cigarettes in addition to standard 20 packs.

The company's two other brands, Shikhar and Khukri Gold, are already available in packs of 10.

However, Surya's minipacks are to be available only in select markets, says the company's ad.

No Smoking & Marlboro

Even after banning advertisement of tobacco product brands on electronic media the Health ministry of HMG was surreptitiously helping the cigarette industry. But with this year's "No Smoking Day", the ministry came out clearly in favor of one particular brand of cigarettes.

Look, for example, at the photo it used in the No-Smoking-Day ad. Though the text in Nepali calls for keeping the air clean by reminding that smoking by your neighbor would be deadly, the photo of a cowboy on a horse used in the ad quickly reminds one of Marlboro brand of cigarettes.

One does not feel like smoking just for nothing, one needs some stimulants. And ask any anti-smoking Guru teaching how to avoid smoking, the first lesson you get is remove such stimulants as ashtray and the like from your office table, drawing room or bed room. Just the sight of ashtray encourages a habitual smoker to go for a next smoke.

TV program "Vishwa Ghatana" previously sponsored by Surya Tobacco had been, after the ad ban, converted unofficially into Dhumrapan Rahit (smokeless) Vishwa Ghatana and is sponsored by the Health Ministry. Every time the anchors repeat the name of the program or show the banner that it is Dhumrapan Rahit Vishwa Ghatana (and they do it about 10 times during the half an hour program) they are arousing the smokers for next smoke.

However, that was promoting not a particular brand. But this time the message is clearer. Go for Marlboro.

New Launches

Toothfriendly Mint

United Marketing Inc. has introduced into Nepali market SMINT, a brand of "Power" mini-mint for adults from.......

Claimed to be awarded "Happy Tooth" logo from International Association of Toothfriendly Sweets, SMINT is designed uniquely- triangular in shape (instead of round that is regular in mini-mint). Its size too is claimed to be convenient. "Allows you to speak while eating it", says the product brochure.

United Marketing deals in a wide range of imported consumer products that include chocolates, tobacco, cigars, tissue paper and baby diapers.

COWReS from Mandala

Mandala Software (P) Ltd. has launched central online web reservation system targeting initially the Nepali airlines and with plans to extend it to other service industries.

According to Bal Ram Pandey, Managing Director of the company, with the system branded COWReS, anyone from anywhere in the world can reserve, with a click of mouse from user PC, air tickets for destinations in Nepal.

Unlike other online reservation systems, such as those from Amadeus and Abacus, which are largely for international sectors costing huge amounts in ticket price, Mandala’s COWReS is primarily for domestic sectors, says Pandey. However, COWReS also has potentials for adoption by international airlines, he adds. Using COWReS, Nepali airlines save in the installation costs for such systems. They only have to pay Mandala a negotiated rate for each ticket sold through COWReS.

Mandala is a sister concern of computer Advanced systems Trading House Pvt.Ltd.(ACAS).

Cards for Smart People

For Nepali consumers who have been using credit cards or likely to go for them in the near future, one additional option now is that of smart cards, courtesy IT Nepal, the dedicated IT wing of Golchha Organization.

Similar in size to today's plastic payment card, the smart card is an advanced version with a microprocessor embedded in it, and when coupled with a reader, has the processing power to serve many different applications, explains Hitesh Golchha, of IT Nepal.

As an access control device, Smart Card makes personal and business data available to appropriate users. In another application, it provides users an added tool to manage time. "The list of the smart card's capabilities is exhaustive", says Golchha.

to make the cards usable as payment cards, the company has to tie up with banks and, Golchha says, the responses from banks so far contacted have been encouraging. Even without the banks participating, the cards can be used by individuals for other application purposes.

For the product itself, IT Nepal has tied up with "world-class manufacturers with Australian technology", according to Golchha who also says that his company has complete local back up to provide uninterrupted and high quality service needed for the product. IT Nepal also offers one-year on site warranty for the product.

Smart Cards are said to be based on a technology that is ahead of bar codes, magnetic strip cards, proximity cards and contact smart cards.


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