Buy Your Way to Profits

Business is all about profits. Commerce is largely about Buying and selling. While we at BA focus a lot on selling, we just thought to put a couple of articles on Buying and Negotiating while buying. This is the first part and will deal with Buying and some ideas that would benefit the dealers, retailers as well as distributors entering into buying for ceramic goods.

In Ceramic Industry, buying is a long term association of the buyer and the seller. It is a continuous activity and needs real good care while finalising the supplier. Moreover, being a continuous process, it needs the buyers to build a positive relation with the suppliers and largely manufacturers in our case. So let us look at some points to be watched onto.

Choose the Brand Wisely

Ceramic Industry in the past few years has changed drastically and has attained proportions of global scale. It is not just small SSIs manufacturing products and selling to whoever comes along to buy. It has matured into an important industry for the building and construction sector.

The manufacturers have all made efforts to build brands. However, all the brands do not have the same value. The brands value as perceived by the buyer is most important. A valuable brand at a meagre extra cost actually turns out to be a better business deal than a low value brand without much brand recognition or respect. While the former builds your own brand as a local supplier, the latter puts you in the category of Bulk Dealer for the masses, and impression, you want to avoid.

A brands value is not just built on advertising. At no stretch we mean to say Advertising is not necessary. But brand value is built on product trust, quality, designs, the way it is put into the market and the delivery propositions.

Let us say a tiles manufacturer, Mr. A, has a good logo, slogan and products range. He has a string advertising strategy to promote all three. He makes an effort to pack tiles well and also puts laying instruction and helpline on the packaging. He also ensures that all this information is on his web site as well. He has put an easy to understand FAQ section in the web site as well as the package. He has a system in place to permit easy questioning and answering.

Further, the same manufacturer has also taken the pain to promote laying and products care to Architects, Interior designers as well as labourers laying the tiles. All these processes are Post Production. However, all these add to customer value directly or through supply chain.

Both ways, the tile manufacturer is taking the pain to develop the brand trust.

There is his competitor, Mr. B, with the same manufacturing facility and capacity. However, his post production includes packing and delivering the goods to the dealer. There is no after sales support as such.

Which Manufacturer would you work with? No marks for guessing, it is obviously Mr. A. (If it is Mr. B, you are really disillusioned)

When you as a buyer select a good ceramic brand from the market survey alone, 25% of your work is done. Do remember, there are a lot of companies in Morbi who have had strong management and vision to carry out all these after sales activities. Morbi is a town of entrepreneurs and they believe in giving and taking good quality service.

So the Next Step…..

Observe the Un-presented

We are sure you will plan a visit to the ceramic company and meet the founders or the sales team before finalising. This is a very important part of the deal. YOU as a buyer must know the people behind the show. As we know, most of the entrepreneurs in Morbi have come up out of sheer guts and largely their own fundamentals of management and behavioural values. Not all will match your attitudes and approach to business. It is very vital to meet the founders.

The Entrepreneurs of Morbi have lately started employing smart kids to present the products, brand and the production facilities to you. Largely, they will try to strike a deal and tie up with you. It is a good business practice, but with a loop hole. You do not get to see the real brains behind the show. You do not feel the real principles. You will never gauge the philosophy of the company.

Do not strike the deal. Make it imperative, without asking, to meet the founders. This gives you an insight into values system and ethics and morals the company will hold. Remember, culture flows downwards. This also gives you a chance to increase your credit limits, stock allocation, and other supply conditions that you can negotiate to your advantage. However, the key is to see the un-presented and observe what your pros and cons are, in relation to the prospective supplier.

Another aspect is observing a few things promised like laboratory, testing equipment, raw material stores, finished goods storage. Labourers and supervision system. If a company boasts of ISO or other certification, you can check whether they actually follow quality management system, or they just highlight the certificate.

Kindly note, none of these will be told to you. You have to silently observe and make mental notes. These are indication of the credibility of the ceramic manufacturer.

For tiles you can also see whether the company has latest technology or they are just working on old equipment. Are their workers working with a strong system or are they highly un organised. Do they have a dress code, which implies good discipline? Do the worker smoke within the shop floor or not, another sign of discipline.

For sanitary ware, the main thing to observe is the moulds and the pressure casting systems that they have. This gives you an idea of the real capacity of the company. Do they own their moulds or they buy out cast parts? Do they have simple manual casting or they have pressure casting? Do they have dust free zones in Glazing or it is just written on their web page? All this and more will give you an idea of the company’s standing. These aspects will also be helpful at the time of negotiation.

Once you have checked the above two, it is best to finalise at least Two to Three brands depending on your strategic decisions. Kindly note, always visit the founders before finalisation. They should be a part of the final deal and financials. It makes your later working smooth and easy.

Ask for Non Financial benefits

Ceramic brands are all very brand savvy and understand the importance of advertising, promotions and dealer support. Always demand what support they will give on all the three aspects.

A consistent meeting with influencers like architects and interior designers. National and local advertising. Attractive promotions to retailers. Local Trade show representation. Banner and hoardings at key spots and retailer point of purchase. Some fringes like foreign trips and other benefits which are too long to express here all add to your business value.

A Smart buyer would largely focus on benefits that increase sales and improve foot falls and demand at their door step. Every thing else though attractive, should be put on second priority.

Markets Are Dynamic : be alert

Ceramic goods’ markets are dynamic. The price variations are quiet hectic. The past few years have witnessed too many spikes and troughs in the pricing. Always be alert and take a weekly stock of things in the market.

Over supply conditions always present great opportunities for buying at very competitive prices. Also keep an eye on impending price rises in inputs, which can take prcins higher. It is best to book some quantities in advance to when such an event is anticipated.

Look for stocks all along the highway. Be in touch with transporters, they always know the peaks and the troughs. Find indicators of seasonal nature. Like in monsoon sanitary ware and roof tiles sectors witness very low production, while summers have high through puts. Make the most of these seasonal variations.

Why are we enlisting this after finalising the Buyer?

These indicators help you to keep your rates floating and hence take maximum advantage of the situation in your decided brands.

Further, working with more brands also gives you a good flexibility to negotiate at every stage.

The article will be continued in later issues. Do read on…

Happy Buying!

International Visions : Brazil

Brazil : First Impressions

What comes to our mind when we think of Brazil? The Great beaches of the country. A care free country with luxury and life flowing each moment. We think of the great Rio carnival, the biggest of its kind in the world. We think if the adventurous and mysterious Amazon. The unexplored brazil is one of the most intriguing destinations to a common man.

What does Brazil have in store for the businessmen? Brazil is considered a part of BRICS, one of the fastest growing economies of the world. It is a strong economy based on internal production as well as exports. It is becoming self sustainable and believed to be one of the best destinations to invest in. There are a number of industries in Brazil that are growing very fast.

Brazil is a country of mixed cultures and tastes.  With five heterogeneous regions, Brazil is a country with diverse and deep-rooted ceramic and artistic tradition. Marajoara ceramic pottery is a good example of genuine Brazilian way to deal with ceramic tile.  Brazilian companies produce a large variety of textures, shapes and models of ceramic tile - mosaics, large formats, irregular finishes with a great variety of colors from fundamental to lively.

This issue, the Build Avenue team has planned to continue the International Focus section with Brazil. We are sure it will be a delight for a number of readers and will pose a challenge for many as Brazil is standing out as a consistent competition to Indian ceramic industry.

Short History:

Brazil ceramic is believed to have started as sophisticated Marajoara Pottery from cultures on Marajo Island in Brazil. It is largely human and animal reliefs decorated with paintings. There are many statues, and other object made from ceramic then known as pottery. There are findings of cerved stone amulets called muirquitas.

In the beginning of the 21st century, the ancient Indian traditions of body painting, pottery, cult statuettes, and feather art are still being cultivated by the remaining Indian peoples.

Brazils history has been influenced by Portuguese culture since its colonial presence. Most of the earlier ceramic artifacts, decorations and utensils all have a strong Portuguese base. The influence in evident in many of the historic sites in Brazil.

Brazil’s growth in ceramic sector has been gradual and smooth. It does not have any huge spikes till the turn of the century. Brazil has come into limelight in the ceramic industry since the last decade.

It had many small and medium manufacturers of ceramic goods largely tile manufacturers. The association Anfacer, the National Association of Brazilian Manufacturers of Ceramic Tile, was established in 1983, which has catalyzed the growth of Brazil Ceramic Industry and promoted its products globally. It played a vital role in modernizing educating and improving the quality of ceramic goods of brazil.

In the late 20^th century the development picked up speed. This was the period when global transformations were on the rise. Smaller and weaker countries were getting stronger account of globalization and education. With the knowledge flowing in all direction and freely, Brazil could get access to knowledge as well as technology to boost their production as well as quality.

The year 1998 saw a growth of 4.5 % approx over the previous year. The export was a proud USD 155 Million, which was highest for any year. This period saw the currency of Brazil fluctuating and witnessed political uncertainties. This however, did not deter the ceramic tile manufacturers. Their growth continued. The growth was on multiple facets, technology, quality volumes and range.

Since 1998, the industry in one of the largest employment generators. Direct and indirect employment are consistently on a rise.  

The Exports

Brazil is regarded as the biggest exporter of ceramic tiles in this period. The reason is their access to the south American Markets as well as the huge demand of the North American markets. The flooring replacements towards Ceramic has become a trend in the last century and it has enabled Brazil to grow many folds in the turn of the century.

In terms of quality, Brazil is considered to be better than China. It is also regarded as better than India in technology and commitment of delivery. With its vicinity to the Vast South American Market today with very small competition, they are the largest manufacturers of ceramic goods on their side of the hemisphere, even overtaking their European counterparts.

Domestic Consumption

Surprisingly, since 2004, the production has increased, but the exports have diminished. This is largely due to the fact that the domestic needs have increased and the purchasing power of the consumers have grown. This coupled with better living standards and development being extremely fast, the Brazilian ceramic industry is focusing on the domestic supply.

This however, can be considered a small erratic behavior. With expanding capacities, better and faster technologies. The expertise over variety of goods and availability of labor all are adding to the volumes of production. It will be not long before the Brazilians recapture the international markets.

In the end, just to highlight the strength of Brazilian Ceramic industry, here is a small news piece.

LAPATO: Tiles that have nature embedded in them.

We love nature, and want it everywhere…

For centuries, the unprecedented beauty of nature has lured the world. The use of nature in every aspect of human life has always been at the forefront of the designer’s minds. From a historical perspective, the tradition started quite early as is testified by the ancient Indian, Greek and other civilizations and has continued since then. Humans progressed and technology started gaining importance in building and decoration of homes; but nature has always held its attraction and natural designs are ranked as one of the topmost priorities for a designer even today. Since ages, nature has been an integral part of a designer’s think tank. In fact, humans will probably never get over with the delight of using man made material that appears close to nature, but has better properties for use.

This very nature of humans to be close to nature has motivated the ceramic industry to invent and reinvent designs and technologies that serve as a substitute for nature. Ceramic industry itself is an outcome of using the best of nature, clay to produce and deliver high quality ceramic goods that adorn the interiors of living spaces. In this quest of the industry to give a near natural touch with all the modern properties to the material, 

LAPATO has been an instrumental range.

It’s time to formally introduce LAPATO to our readers.

LAPATO is an Italian term. It means Honed Soft Finish. Most of the tiling solutions that have come before Lapato are plagued with a number of limitations. First up, their edges appear round, like ceramic floor tiles. Then, their textures are smaller in design. Further, their glossiness or even matt finish gives an impression of the artificial depiction of nature. In short, these and many other limitations have motivated inventors to look for better solutions.

LAPATO’s properties make it a near nature replacement. It has all the benefits of nature and science.

The Look

It is available in almost all types of natural colors.  Be it marble, granite, wood or leather. Companies and researchers have not left a single stone unturned to extract the most breathtaking natural effects for the Lapato products.

The Feel

As it is made in a single full body mass it resembles nature all the way. Like nature, where slabs are veined due to years of natural temperatures and pressure on the stone, they form a veinous body, resembling marbles and granites.

The Gloss

The glossiness of the product is extraordinary. The shine lasts for years and makes the interiors glow forever.

The Homogeneity

Again, like nature it is homogeneous. It does not appear like a painting.

The Vitrification

It has a complete vitrification. It is baked at a very high temperature which enables this sort of vitrification. This gives it a homogeneous strength in the body.

The Joints

It has a drastically low thermal and moisture expansion. This enables it to be laid joint free. Joint free nature of LAPATO makes it ideal as a natural floor, totally free flowing.

The Thickness

The thickness is 9 to 12 mm, making it quiet thin compared to any tile or stone. Surprisingly, even with this low thickness, it is tough on the inside. This also makes it easy to handle and lay perfectly.

The Sizes

It can be manufactured in 600 x 600 to 1200 x 600 sq.mm sizes. The size factor makes the natural Lapato tiles a big attraction for the lavish, grand and luxurious constructions.

The Uses

Lapato tiles can be used in high traffic areas also. They are ideal for residential as well as commercial buildings. Having a low slip, they are suitable for any kind of flooring and the builders can apply them without fear.

Maintenance Free and Stain Free

The Lapato tiles are virtually maintenance free. A simple wash would serve the purpose of cleaning. Having very low water absorption, the shine of the surface never fades. Additionally, the tiles are stain free as well. Moreover, product is very hygienic and serves as the best in sanitation styling.

A technological Wonder

The surface appearance as well as long life are the twin major advantages of Lapato. This leads to low water absorption and hence gives the tiles the required technological edge over natural stones.

As mentioned earlier Lapato means soft honed finish. This is one of the biggest advantages that keep Lapato tiles way ahead of the rest.

The effect is achieved by giving a gentle finish to the vitrified tiles using special abrasives. In this manner it is made stain free, joint free, hygienic, maintenance free, less slippery and reduces glare.

After glazing and necessary decoration the tile surface is filled with specially formulated extremely hard and transparent granules. These granules enable the Lapato finish.

To cut a long story short, the Lapato tiles are a perfect blend of Nature and science that embellish the floors of homes and offices. The right choice for traffic areas that define high style with long life. They are indeed worth a lifetime Investment.

Roof tiles: The first generation of Ceramics in Morbi.

Morbi has been the epicenter of Industrial growth since years. It has a deep drawn history of consistent production of various products in mass capacity. One of the major aspects of Morbi being an industrial hub is the entrepreneurship zeal of the people here.

Ceramics was introduced in Morbi 60-70 years back. It is no news that all ceramics have the basic raw material as clay. So does roof tiles.

Small Beginnings

Initially, the industry started as a back yard production. Most of the now big entrepreneurs were then traditional home based part time businessmen. After working in one or the other factories as employees, they came back home to manufacture roof tiles. The whole family normally used to get involved in production. With no automation to support, most of the work was done manually. These start-ups were very challenging, but led to the development of an altogether new sector.

The processes were so primitive that wet clay was stamped by feet. Every member of the family stamped clay to give in proper mixture as well as grain structure and shape. Cutting too was done by hands. A 250 pcs per day production would have made a manufacturer proud to be one among the best.

As the demand for the product increased, mechanization started playing its role as well. The part timers soon became full time business owners and manufacturers. The first phase of mechanization was the Hand Press, which were easier to operate and also increased production. The capacity went up to 500-750 pcs per shift, which was excellent in those times.

The number of production units too started increasing, given the rise in demand. While most of these tiles were manufactured in southern India, (named Mangalore tiles popularly), Morbi soon came up as a fierce competitor.

The Big Boom

As time progressed, mechanization improved further to provide revolving press. The capacities went up to 7000 pcs per day, which was really great.

Most of the Old brand names of Ceramics today, that have made it big started with Roof tiles. There was a phase when Morbi was recognized with the caption “Naliya, Ghadiya ane Taliya” literally meaning, Roofs (Naliya), Clocks (Ghadiya) And Mosaic Tiles (Taliya: Flooring). The strong demand and easy availability of factors of production motivated other businessmen to invest in manufacturing and there was a vast mushrooming of manufacturers of roof tiles. At its peak, it is believed that there were about 300 small and big manufacturers of Roof tiles.

The Competition

Roof tiles had made their way into the market with astonishing demand. The rural housing as well as some constructions in cities too had the need for roof tiles. The going was one of the best.

With time, every industry was growing as so was India. The change was quiet slow initially, but it had its effect. There were better substitutes starting to make their way into the construction sector. Structured Buildings, cement roof sheets, Aluminium roof sheets as well as RCC roofs became an easy replacement. The better part was, these were more reliable on the long run.

Though roof tiles are much more health friendly to the skin, other replacements became very convenient to implement, had a better long term value and the purchasing power for the same had also increased.

With the advent of Multi stories, Roof tiles’ demand died quickly. Coupled with other replacements and technologies for their implementation, roof tiles faced a very stiff competition.

This discouraged most of the entrepreneurs who slowed down their productions and started planning diversification into sanitary ware or Floor tiles. The panic started taking place and a domino effect soon followed.

A Good Diversification Opportunity

As an addition of insult to injury, came the rising demand in other ceramic products, namely wall tiles and floor tiles. These products offered the technology and mass production advantage. They were capital intensive rather than labor intensive. It made sense to diversify. This opportunity helped the roof tiles manufacturers to fast change their lines of production as well as get into a new product line whose demand was increasing.

These new sub sectors of ceramics also offered much better profitability. They were the new trend products that made every entrepreneur get their plants redesigned to meet the new production requirements, leaving the roof tiles manufacturing altogether.

The mix of danger of demand slide in Roof tiles sector and growing demand and opportunity in other ceramic sectors, led to the downfall of the rule roof tiles industry in Morbi.

At present there are only about 60-70 string manufacturers in Roof tiles sector in Morbi. They too are fighting a battle of survival and there are challenges to the same as well. There have been no new comers for the last 15 years. This gives an indication of the challenge the industry is facing.

Major Challenges

·      Turnover is very low.

·      Cement sheet have become the ideal replacement.

·      Most buildings are multi-storied.

·      Demand is less and is falling fast.

·      New trends are emerging and we cannot keep pace with them.

·      Labor problems are increasing with many other industries coming up and demand for labor going skywards.

·      Automation Technology is not there, forcing manual work, which makes the production unviable.

The Hope for Future

There seem to be evidently some solutions to the slipping industry status. First is the radical revamp in technology to go for automation. This can lead to lowering of costs. The technology exists in China and Italy. However, the demand does not justify the investment in this technology and that too at a radical level.

The colored roof tiles are finding better takers now in the markets. With the trends changing and technology available to provide for this change it is but a small solution to the bigger problem.

Exports have to increase, as some third world countries as well as countries where single storey designer houses are a rage, can pick up a lot of these tiles that too at a good rate.

Italy: Where Ceramic is an Art

Ceramics is not new to Italy. It has been flourishing there since ages. Initially, the ancient Greek potters settled on the coasts of southern Italy and gave rise to local Italian pottery. This was the small beginning of the age of great Italian Pottery. Artistically the best age for Ceramics in Italy is considered to be between the middle ages and renaissance. During this period, the ceramists and artists thrived and its beauty even today is fondly remembered and widely respected.

Thanks to the perfect combination of function and art that is missing even in modern times, ceramics gives that touch of practical and decorative beauty that surely lends usefulness and style in almost every Italian house.

Maiolica (Pronounced Majolica): The first name of Ceramics in Italy

The name “Maiolica” (majolica) comes from the Spanish island of Majorca where ships carrying lusterware from Valencia stopped on their way to Italy. Actually these ceramic wares were not manufactured there, but it was believed by the Italian traders and hence the name stuck. By the 1500s in Italy the term had broadened its’ meaning from lusterware to ‘tin glazed earthenware.’ The basic designs employed in these imported ware were Spanish or Islamic. With time however, the Italians started innovating to develop their own styles, surface finishes and shapes.

Italian Maiolica was first produced around 1350 as earthenware with an opaque white tin oxide glaze. Its most outstanding feature is the beautiful, colorful decoration which never fades or loses its beauty. Maiolica is usually associated with the Renaissance when it hit its aesthetic peak, but it had been produced in Italy since the 13th century and is still produced today.

Early Maiolica was decorated in just two colors: copper-green and manganese–brown. Between 1350 and 1460 improvements were made in kilns and glazes which established the polychrome (multi-color) decoration that is now associated with the renowned Renaissance ceramics of Italy.

Small towns and big cities like Siena witnessed widespread recognition in high-quality Maiolica. They had developed styles of their own, by the end of 15th century. The most popular were Deruta nears Perugia and Montelupo near Florence. The benefit of both these towns is that they are situated on river banks and have an easy access to natural clay, which is best for production of Maiolica. By the end of 16th Century, there was considerable trade of Maiolica in towns of Sicily and northern Europe. As the cities grew, so did the consumption and production of Maiolica. The church of Madonna dei Bagni near Deruta still has over 600 Maiolica votives (plaques offered to the Madonna asking for saintly intervention), dating from the 17th century to the present.

The Making of Maiolica: Prime Technology

Let us see the steps involved in the making of Maiolica:

01: The Potter

In the first step, the potter makes the shape by his hands. Nowadays, we call this casting. This is done normally on a Potters wheel.

02: First Firing

The dried pieces are then wheeled into the kiln in a rack. The firing is done at 1030 degrees centigrade. Thereafter slow cooling is done by closing the kiln for hours. The piece, called “Biscotto” (Bisque, Biscuit for tiles) by then gets its typical terracotta red color.

03: Glazing

The cooled pieces are then dipped in fast drying liquid “Primo Bianco” or first white or “Smalto” or enamel. It is then ready to be painted.

04: Painting

The painting is done. There are many Italian forms of painting. This is one activity that really separates the Italian stylish ceramic ware from the world. The colors and the glazes used here are again inventions of the Italians themselves.

05: Second Firing

The pieces are then re-fired at 920 degree Celsius to permit the paint to settle into the piece. It generally takes 12 to 24 hours of soaking.

The Decline: 18^th and 19^th century

The 18^th and 19^th century saw a decline in demand of the Italiance Maiolica. This was due to the increased competition from other European countries as well as the fact that improvement in trade ties with Asian countries added to the easy availability of ceramic ware.

However, during 1880s to early 1900 a movement was started to re-establish Deruta and other Umbrian towns to produce the Maiolica design and grow its production. In 1900 a ceramics museum was created to promote historical and cultural research. The museum was founded with the aim of serving the artists of Deruta and the history of Deruta. In 1903 the Communal School of Design was set up with the primary goal of training craftsmen in the traditional techniques. They wanted to recreate the antique and traditional types of production and imitate Renaissance styles. Due to the creation of the museum and school, Deruta today is one of the leading exporters of fine Italian Maiolica.

The lustre technique

In 1948, Giorgio Andreolli introduced Lustre technique called Gubbio lustres which are famous worldwide. Mastro Giorgio had worked out his own secret formula for majolica lustre, a classy technique employed in the decoration of majolica during the Renaissance period. It consisted of a beautiful sparkling effect obtained by applying silver, copper and other substances on a previously glazed majolica. A third firing in very complex conditions was the key to the success of this process.

Maestro Giorgio’s polychrome pottery was so beautiful that he soon became the most recognized supplier of tiles to noblemen, dukes and the Pope. His original recipes were lost, making it impossible to replicate the outstanding results obtained by the ancient ceramicist.

The istoriato ware

Istoriato is an Italian word meaning story telling.
It is a classic style of Renaissance featuring narrative scenes and figurative subjects. It was much admired and sought after by important patrons of Maiolica. Masks, grotesques, arms trophies, dolphin headed scrolls, flowers, baskets of fruit, winged cherubs, and banners with inscriptions, legendary labours of ancient heroes, biblical references with classicized interiors, trophies and coats of arms, music, portrait medallions, human figures and winged monsters were all motifs of the period, painted on large ornamental pieces.

BRANDING: The image that impresses, The Product That lasts

We are in advertising since years. We have been designing and media planning for some time now. It would be fair to announce that we understand local level advertising parameters well. Through today’s article, we would like to clear some Myths about Branding and other related issues.

A Common Myth

MYTH 1: Catalogs will move any products

It has been noticed that many clients come and tell, “ GIVE ME A CATALOG THAT SPEAKS SO LOUD THAT BUYING WILL BE INSTANT”

If this was the case we catalog printers would be selling anything and everything. Catalogs serve to represent your products in the best possible manner. They will inform and inspire the buyer, however, the products will still have to deliver. Never even expect this to happen just on the strength of a catalog.

However, Catalog has to be visually appealing, informative and motivating.

MYTH 2: We have a brand, whatever we introduce will work.

This is one of the worst of all the myths. The consumer has become very educated. In fact you have to decide whether to put a product in same brand or not. If the product is weak, it will affect other products in the same brand. The product should always meet the brand promise made to the buyer explicitly or implicitly.

This does not mean never to use same brands and keep on creating new brands. You must develop products that match to your brand belief in the buyer. This is very advantageous as the same branding expense delivers better returns per every rupee spent on branding.

MYTH 3: Costly Media always Delivers

Media is probably one of the most confusing decision in Advertising and branding exercise. TV advertise being the most expensive. A TV ad will say that you are BIG. However, whether it touches your buyer or not will be questionable because to touch your real buyer you will need consistent bursts of TV ads. They have to be on several channels, not just on one or two.

THE DANGER: A TV ad has to be backed by Hoarding placements across the nation and print media. If this is not done, the initial TV ad budget will go down the drain. People have short memories.

If you do not have a huge budget, you need to plan your media very cautiously. Always take enough information on each media and its impact before deciding on total media plan.

MYTH 4: Once you establish a brand, you do not need advertising.

There are companies that spend heavily on brand creation and then loose out on maintaining the brand image. This is extremely costly. If a brand is created it has to be reminded to the buyers regularly.

The reason is that once you establish and image and then leave the media, someone else comes on and creates his own impression. So the buyer now has the other image not what you created.

It is better to have an economical media in a selected target market than have the whole country at once and finally fizz out when the maintenance part comes on. Also the media costs are the highest and recurring, so take on and study as many options as possible.

Plan well, Plan Long, Plan forever.

MYTH 5: Word OF Mouth will take care of the brand.

A very far fetched and long term strategy. This is normally followed by limited budget branding seekers. Word of mouth will only survive if the product beats most other options. It will be a very slow process.

It is not suitable for industry such as our which dishes out thousands of products per day. Yes you still have to get referrals for Architects and Interior designers. However, that will not suffice.

MYTH 6: Your USP will create your brand.

Some times a manufacturer is very excited about a new technology or product offering that makes his product different from his competitors. He starts believing that this  small advantage will beat all his competitors and make his brand huge naturally.

NOT POSSIBLE

Consumers want a total package at the right price. You cannot sell a writing pen with video recording facility however unique the combo is. The cost itself will not justify.

The brand is much bigger that a USP. Brand can highlight USP but the brand will always be the center, not the USP.