Consumer Psyche

Is there an excellent or very good coffee blend? The answer seems to be a no! After tasting 37 different blended coffees, Consumer Reports couldn't find one that measured up to its "excellent" or "very good" ratings.

The less-than-glowing report follows a year that saw tight supplies of high-quality arabica coffee beans in Colombia, followed by steep premiums that caused some roasters to look for cheaper and more available options for their blends.

Ranking at the top of the list of 14 caffeinated blends -- earning a rating of "good" -- are the Starbucks House Blend, calculated at 26 cents per cup, and Green Mountain Signature Nantucket Blend Medium Roast, at 23 cents per cup.

Blends are the best-selling type of ground coffee and contain beans from at least two regions or countries, the publication said.

The highest score for the 13 decaffeinated coffees also failed to reach the top two categories. The better scoring varieties included Allegro Organic Decaf, Blend Medium Dark, Peet's Decaf House Blend, Caribou Daybreak Coffee Morning Blend Decaf and Bucks County Decaf Breakfast blend.

Consumer Reports has a rating criteria in which the tasters look for specific characteristics including the flavor and aroma.

The publication advised coffee drinkers not to count on familiar brand names or expensive price tags, noting that the cost doesn't accurately reflect the cost per cup due to varying grind densities, and recommended ratios of coffee to water.

Consumer Reports is published by Consumers Union, an independent nonprofit organization that does not accept outside advertising or free test samples, it said in a release.

The potential of the rural market in India is huge. Even after all these years of studying and understanding the rural consumer, distribution channels still remain one of the biggest challenges of working in rural India. When compared to the consumerist urban society, the rural consumer's choices are need driven first, which results in him being a thrifty cost-conscious buyer. There is a conscious effort to spend less but this doesn't mean good quality products don't get picked up. In fact the rural market absorbs huge amounts of products and in certain categories they are faster than their urban counterparts. A study by the National Council of Applied Economic Research (NCAER) threw up some interesting facts. The rural market accounts for:

• 53% of FMCG sales
• 59% oc consumer durables sales
• Almost 100% of agricultural product sales
  

With the current slowdown ringing death bells n several firms, the focus has shifted towards Indian villages and custom made products to suit these consumers are being sold. This is a good sign. Like I said in the beginning, Indian rural consumer holds a lot of potential and is worth a look.

The greatest barrier to success is the fear of failure.

One way to think about running a successful business is to figure out what the least you can do is, and do that. That's actually what they spent most of my time at business school teaching me.

No sense putting more on that pizza, sending more staff to that event, answering the phone in fewer rings... what's the point? No sense being kind, looking people in the eye, being open or welcoming or grateful. Doing the least acceptable amount is the way to maximize short term profit.

Of course, there's a different strategy, a crazy alternative that seems to work: do the most you can do instead of the least.

Radically overdeliver.

Turns out that this is a cheap and effective marketing technique.

--- From Seth Godin's blog

I love to hear people telling me that they love doing something but not finding time to do so. Things like I wanted to do that professional course, wanted to paint, lose weight, start playing violin again, paint, start blogging again and so on. The whole thing is discussed as if it is their life time dream and the evil dark forces are all against you to stop doing it! Not that these dreams are things that need a lot of pieces falling in place at the right time or need some 20 yrs of hard work and extremely good luck to achieve. Things which can be done if you spare an hour or two a day, things which can be done unless you are lazy. Shows why you are still there not doing what you love doing. What is the point of dreaming when you don't have the zeal or enthu to go and convert it to a reality? I know it is very difficult to do what you love with the responsibilities of work, home and other pressures pinning you down. But frankly speaking, are you not just giving an excuse? Nothing is worse than an excuse.

Dare to dream. But have the guts to go and convert it to reality. Too many dreams are lost when you don't even care. Make a commitment that you will achieve what you wanted to do. Then DO. It is a simple three step process: Dream, be ready to achieve it, Enjoy the fulfillment. Then dream again.

The difference between interest and commitment is your attitude. When you're interested in doing something, you do it only when it's convenient. When you're committed to something you FIND time to do it. More importantly there are no excuses, only results.

Excuses are for losers, people who never achieved anything in life. History doesn't remember excuses. List things which you are just interested or committed and prioritize. Did you achieve what you wanted to? Well, about your commitment, it shows.

Business Line reports that India’s gold imports surged the most in three months in January as falling prices lured the stockists to book to their capacity in anticipation of an imminent rebound.

Data by the Indian Bullion Market Association (IBMA), the trade body representing Indian gold jewelers and importers, show that the total gold import during January rose to a three-month high at 37 tonnes as compared with 27 tonnes in December and 30 tonnes in November 2009. In October, however, gold’s arrival into the country was recorded at 48 tonnes on occasional demand from retail jewelers.

However, last year, in the same month, imports had virtually dried up as the price hit Rs 14,000 per 10 gm in India. In January and February 2009, imports were almost “nil”. Retail consumers and jewelery makers stayed away for a while, though, but returned to the market due to the lack of other asset classes for safe haven investment.

Gold has offered 18 per cent return in the last one year. However, other investment options including real estate, currencies, among others underperformed in the same period.

Gold prices rebounded in the last three days as standard variety of the yellow metal (.995) jumped 2.8 per cent to close on Tuesday at Rs 16,710 per 10 gm. The precious metal, however, stabilized on Wednesday to remain at Rs 16,700 per 10 gm as retail buyers remained absent from active purchases.

After hitting the support level of $1,080 (Rs 16285 per 10 gm in Mumbai) on January 29, gold prices turned to hit $1,123 an ounce on Wednesday. But, the metal got good support from dollar’s weakness as 10 per cent increase in the US unemployment rate in December put a check on dollar’s strength against major global currencies.

Early December, gold price had hit an all-time high at $1,215 an ounce in London pushing the metal in India to Rs 18,220 per 10 gm (Rs 18,340 per 10 gm of pure gold).

“Price-sensitive consumers always plan their investments in the yellow metal when it looks attractive for them. Also, Indian consumers check the potential before passing purchase orders and hence, price variation is directly proportional to gold’s retail buying in local market,” said a trader.

Meanwhile, retail demand of gold halved in the last three days with regular buyers staying away for the time being. Need-based buying, however, continues due to ongoing wedding seasons. But, sales are not remarkable as prices have again started rising, said Ketan Shroff, director of Pushpak Bullions and member of the Bombay Bullion Association.

Much of global purchases were done during the second fortnight of January when prices were a bit low. Since, analysts were bullish towards gold even at this level, a majority of Indian buyers filled their order book position during that period, said Shroff.

Kerala, God’s own country, has not earned this name without meaning. There is an air about it that justifies its warm and affectionate existence.

Keeping in tune with the phrase 'do in Rome as the Romans do', I order some extraordinary crafted dhoti and sari to be worn... The sari, of course, for the ladies in the house.

The ‘dhoti’ in all its pristine glamour, tied up around the waist by shear will power and some dextrous use of the stomach muscle, else it slips down and opens up !! It is just a piece of cloth, no buttons, no belts, no clips nothing. Simple elegant convenient and with its own characteristic charm and above all - air conditioned at all times !! The fall of the main design as a strip down the front to be positioned on the right hip and just around the right knee. Rules of culture.

From Amitabh's blog

My friend Ajay Abraham sent me this link about saving tigers and I instantly signed up. As of now only 1411(including me) of us left. Check if you are interested and help in preserving me :)

Click here to know how you can lead the change.

BTW, Ajay is a talented photographer. Check out this gallery on his site.

Was recently watching Hancock with a friend and every time Will Smith said 'Good job!', it would evoke peels of laughter from her. Funny but true. How often do you see people appreciating the work you do? How important is it for an individual to get appreciated? May be your colleague, your team member, your boss or just the guy who ushers your car in to the parking lot. Appreciation is not for the job they do well or out of their way. It is for the job they do right. I have seen people in the simplest of jobs(read low paying, least appreciated, etc.) do it well, with full enthusiasm, zeal and energy that I feel motivated with the kind of profile I handle and people around me do. What you do might not be as important as the next guy but the question is the ability to enjoy what you do, when you do... no matter what. Unless you have this in life, you are not happy. Not that I say you should be stuck to what you do and stop dreaming, but the ability to enjoy what you do is pretty important.

Appreciation goes a long way to boost a person's morale and win you respect too. Just try doing it to every one you meet in your daily chores. The autowala, chaiwala, printer, steno, etc. everyone who adds something to help you do your job well. Appreciating people at home is important too. How many times have you thanked your mom for cooking you good breakfast, being so nice and wonderful for all those years and taking care of you? You don't need a Mom's day to send her a card.

Sometimes simple gestures talk more loudly than actions. Still not convinced? You should see the look on the maid who cleans my desk everyday. She knows as much English as I know Malayalam but when I thank her, her eyes shine like she knows what I meant. You should try :)

Beatles croon from my iPod...

Gartner analysts have predicted that by 2012, over 50 percent of enterprises will use Twitter, and by 2014, social networking services will replace e-mail as the primary vehicle for interpersonal communications for 20 percent of business users.

Greater availability of social networking services both inside and outside the firewall, coupled with changing demographics and work styles will lead 20 percent of users to make a social network the hub of their business communications. During the next several years, most companies will be building out internal social networks and/or allowing business use of personal social network accounts. According to Gartner, social networking will prove to be more effective than e-mail for certain business activities such as status updates and expertise location.

By 2012, more than half of the enterprises will use activity streams that include microblogging, but stand-alone enterprise microblogging will have less than five percent penetration. The huge popularity of the consumer-microblogging service Twitter, has led many organizations to look for an "enterprise Twitter," that provides microblogging functionality with more control and security features to support internal use between employees. Enterprise users want to use microblogging for many of the same reasons that consumers do to share quick insights, to keep up with what colleagues are doing, to get quick answers to questions and so on.

Being middle class has never been carefree. Families have worked hard, saved and sacrificed, and they occasionally endured tough times. But generation by generation, the middle-class lifestyle has gotten better and better.

It did so because of the triumph of capitalism. As the great economist Joseph Schumpeter put it: "Queen Elizabeth owned silk stockings. The capitalist achievement does not typically consist of providing more silk stocking for queens but in bringing them within the reach of factory girls for steadily decreasing amounts of effort."

Innovation and trade continually drive down the real cost of goods and services and increase the productivity of each hour of work. As this capitalist engine churns onward, the scarcity that plagued mankind for millennia has given way to the abundance that's the foundation of today's vast middle class.

The capitalist system literally created the middle class, and the best way to maintain and improve our living standards lies in keeping it functioning at peak efficiency. Government largesse, no matter how high-minded or well-intended, isn't going to do much for the majority of middle-class families. They have to pay their own way – as always.

Courtesy: W. Michael Cox is former Dallas Fed chief economist and director of the William J. O'Neil Center for Global Markets and Freedom at Southern Methodist University's Cox School of Business.

Mint reports, business activity among Indian services companies expanded at its fastest pace in 16 months in January, rising for a second straight month on sharp increase in new work orders, a survey showed.

The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 58.96 in January, its highest since September 2008, after rising to 57.41 in December.

This is the second successive rise in the index, which has been above 50 that separates expansion from contraction for nine months as the economy shakes off the impact of the global slowdown.

Before that, it had shrank for six months, hitting a trough of 40.3 in February last year.

“The key business activity index continued its march deeper into expansionary territory in January and is once again consistent with double-digit output growth in India’s service sector,” said Robert Prior-Wandesforde, senior Asian economist at HSBC.

“With the manufacturing PMI also strengthening further over the last couple of months the ex-agriculture segment of the economy looks to have well and truly shaken off the spillover effects from a drought-ravaged agricultural sector,” he said.

India’s manufacturing in January grew at its fastest pace in almost 18 months boosted by a sharp rise in new export orders that underpin a recovery in the industrial sector, the HSBC Markit survey showed.

The business expectations sub-index snapped a two-month fall and rose to 66.58 in January from 65.56 in December.

Favourable market conditions, advertising campaigns and strong reputations for quality were the key reasons for positive sentiment given by respondents, HSBC said.

Robin's words echo my thoughts, though in a different situation...

In my mind, Lady Gaga is the new Madonna. Love her music or not, part of her genius is pushing the envelope and being so entertaining that everyone around the water cooler the next day is talking about just one thing: Gaga.

1. She's herself. Leadership means doing your vision (even if you're title is janitor - be a visionary janitor and create wow in your work). Leadership means staying true to your self. And leadership means, well, not following. Lady Gaga doesn't behave in a way designed to please the crowd. No, with those wild costumes and stunning theatrics, she sets her own course. And then leads.

2. She knows her customers. The best companies create what I call "Fanatical Followers" - customers who are so in love with who you are and what you do that they have crossed the boundary from loyalty into outright fanaticism. Lady Gaga knows what her fans want - and she delivers it to them. Every time.

3. She puts on a show. When you get to work every day, it's showtime. No one cares if you have a cold or if you're feeling off or if you had a fight with your best friend. We are paid to do great work. And the best businesses offer their customers an experience, not just a product or a service. Gaga's shows are experiences.

4. She Leads Without a Title. Much of my new book, "The Leader Who Had No Title" is all about the opportunity every single one of us has each day to shift from victimhood into leadership. To transcend our current circumstances to play in the rare-air of excellence, mastery and genius. This isn't hype. There are people who have learned to do this and I share their process in the book. But the key thing to remember is that Lady Gaga was just an ordinary person, chasing a dream in New York City, not so long ago. But through talent, hard work, ingenuity and leadership, she shed the shackles of ordinary and grew into extraordinary. You can do the same, in your work and within your life. Starting today.

Imports moved back to the positive terrain for the first time since the financial crisis, clocking a 27% growth in December,indicating that the domestic economy was well on its way to recovery, aided by rapidly improving exports that grew for the second successive month.

“Trade has now fallen in line with all other indicators of the economy that had already started improving,” said Crisil chief economist D K Joshi, adding that trade was the last indicator to improve as it is linked to the global economy. The strong 22.4% rise in non-oil imports, after a steady fall for more than a year, reflects an increase in manufacturing and investment activity in the country, as the bulk of imports is industrial inputs and capital goods.

Economic Times reports capital goods accounted for nearly 16% of imports in the year 2008-09. The near double digit growth in exports in December 2009 from a year ago, albeit from a low base, suggests a demand pick-up in the Western markets, including both the EU and the US. The pick up in exports should boost manufacturing and thereby the overall industrial growth, which was a strong 11.7% in November, 2009.

Kurkure has become one of India’s most loved snack food brands and created a new category of ‘tea time’ ‘snacks. ‘It’s become a lovable family brand, examining Indian traditions with a perspective that is new and different,” he says.

Kurkure, according to Vyas, has been a brand of many firsts – from packaging to flavours keeping Indian tastes and preferences in mind. In 2009, for instance, Kurkure went regional with a vengeance with flavours like ‘Mumbai Chatpata’, ‘ Parar Tok Jhal’ and ‘South Special’, which are targeted at the western, eastern and southern parts of the country. On the anvil are Kurkure Funjabi, Kadai Masala, made with rajma (kidney bean) for the north Indian consumer.

The positioning, analysts say, has been unique. For example, last month, Pepsico came out with a print campaign which told readers how Kurkure is made from what can be found in any Indian kitchen, underlining that the ingredients are as wholesome as what goes into home-made food. Kurkure now on will be less about flavours and more about ingredients.

What it means in terms of branding is that Kurkure will have another differentiation from FritoLay's other brands (Lays, Aliva et al), apart from staving off competition from a growing tribe of roasted snacks, including Aliva, Parle Product's Monaco Smart Chips and Parle Agro's Hippo.

Kurkure has also managed to snack its way even into the highly-lucrative festive season in India, with new tamper-proof packaging along with an online gifting option, where consumers can now send a gift pack of the product via the internet.

Features such as these, say analysts, have helped the brand carve a special place for itself in the Indian snack food market, which would be hard to replicate not just by competitors but also by the company itself. “Kurkure is a classic example of exemplary product innovation and a good marketing strategy. The purely Indian outlook and taste has helped it make a mark on the minds of the consumer”, notes Purnendu Kumar, senior analyst. Technopak India.

Pitching the product on the health platform has also helped Kurkure. While the claims are not direct, the company's statement that Kurkure has zero per cent trans fats and no cholesterol and that it's made from corn, rice and gram flour, have helped the product give consumers a ‘guilt free eating’ experience, according to analysts. Its Snack Smart initiative has cut out trans-fat from its products and changed the oil used for Kurkure to rice bran which cuts saturated fat by 40 per cent. An attempt to control portions consumed by users has seen it launch Rs-3 packs. This has pushed sales in the lower-tier towns.

These and the first-mover advantage are reasons why Kurkure enjoys a virtual monopoly in its category. While ITC tried to compete with 'Tedhe Medhe', the impact has not been encouarging so far. While ITC did not respond to queries, Anand Ramanathan, sector analyst from KPMG, says “ITC has a great distribution network. But 'Tedhe Medhe’ is not doing well because ITC couldn't add anything different than what Frito-Lay's Kurkure alreday had.

Mint is running a series of 33 articles on distinct Indian consumer segments. Very interesting information which can be used.

With a population of more than 2 million, B3 segment households represent those urban well-educated families, who are settled in life. Almost three-quarters of these families own the house they live in. With the median household income at Rs5.5 lakh, these households would be quite representative of India’s middle-aged urban middle class. Yet, around 20% of the households at the top end of this segment earn more than Rs15 lakh a year.

B3 segment households are small households, 69% have just one or two children and less than 20% have senior citizens staying with them. The children are in their late teens or older, almost all would be studying in college. In fact, 8% of the household budget is spent on education services, the second highest share among all consumer segments.

The chief wage earner in these households is typically around 45 to 54 years of age, has a college degree or diploma and holds a regular salaried job. Most of the chief wage earners are employed in financial services or in public administration, with basic graduate degrees giving them the passport to an executive or managerial post—57% of the households fall in this category. Those with engineering related degrees would be largely in manufacturing sector, which provides employment to 17% of the chief wage earners in this segment.

An exceptional leader lies inside you. This leader is usually silent down playing the opportunities to convert a situation into a wow experience. Weaving leadership skills needs a lot of patience and positive outlook which comes with practice and enthusiasm to create an environment where the dormant leader in every person gets more active and steps out of the closet in to the limelight.

Far too many such opportunities are disguised in the form of hurdles which we choose to ignore as it takes an extra effort from us to attract that leadership quality and use this card. The other option is much easier when you let the inspiring level of leadership stay calm and let some tag or designation on your visiting card do the job. As a manager it is your responsibility to make sure your employees are transformed into exceptional leaders they can be. As a colleague you should encourage such behavior while exhibiting that yourself.

This applies to every role you play as an individual in your family, friends, at work and even in your personal life. Is the exceptional leader in you sulking or is proud? What have you changed today? Have a great week ahead.

Mansukh Prajapati invented a first-of-a-kind refrigerator that is made out of terracotta, works without electricity, costs US$53 and is selling in the thousands. It's a sample of an innovation wave from rural and small-town India enriching the world with common-sense products.

Anil Gupta, a professor at India's premier business school, the Indian Institute of Management, Ahmedabad, leads a pioneering tribe of technocrats working for no-frills change at the mass level, by harnessing knowledge wealth from economically weaker sections of society.

"Being economically poor does not mean being knowledge-poor," Gupta told Asia Times Online. "But the poor who are at the bottom of the economic pyramid are often considered as being at the bottom of the knowledge pyramid as well. Nothing could be further from the truth."

To prove the truth that wisdom does not depend on university degrees, Gupta's 21-year-old Honey Bee Network has compiled an unprecedented database of 140,000 innovations created by farmers, villagers and small-town inventors. Many have no formal education or technical training. Teams of Honey Bee volunteers scout across India to hunt out local innovations, inventions and traditional knowledge practices.

The Honey Bee Network of rural and small-town inventors, academics, scientists, entrepreneurs, policymakers and volunteers gather, pool, develop and share know-how from a mass-based, much-ignored source. India's heart beats in its villages, and the country is entering a phase of listening to its heartbeat.

Read full article here.

India is capable of meeting the world’s rising expectations from the country, on the back of its growing prowess and ability to recover faster from situations like the financial crisis, global leaders from corporate and governments said here on Thursday.

“Yes, India is capable, India has resources...it has the will to do it,” Indian Commerce and Industry Minister Anand Sharma said during a session on ‘Will India Meet Global Expectations’ at the World Economic Forum Annual Meeting.

Sharma said the world expects India to play a leadership role and lead the economic growth. “The world expects from India to provide leadership and growth in the 21st century...regional stability and peace, inclusive growth.” His views were supported by US Under Secretary of State (economics, energy and agricultural affairs) Robert D Hormats.

“India is a major player on global economic scene,” he said.

India has earned a position in the world by virtue of its dynamic economy, Hormats said, adding New Delhi plays an important strategic regional role. World’s leading communication conglomerate WPP’s Chief Martin Sorrel said, if one has to do business in South Asia, India and China could not be ignored. “India is becoming much more self-confident,” he said. Manvinder S Banga, President (Foods, Home and Personal Care) FMCG giant Unilever, UK, said, “The world is expecting more from India than what India expects from the world.”

“The world expects India to be part of solution for climate change,” he added.

Being in God's own country, Kerala, in Southern India is as joyous as it can be. Here is a Malayali song from the yore celebrating the spirit of the joy of freedom. Freedom from Power Mongers!



The lyrics are as follows:

Today is celebrated as the Republic day in India. A right that I am born with and haven't lived without, something I take for granted and am proud about. Happy Republic Day India. Here is also my prayer to free all those still oppressed and trodden to be free.

THE 86,000 crore FMCG (fast moving consumer goods) sector in India is running full throttle and is expected to have a lot of action in 2010. As the fourth largest sector in the Indian economy, it is distinguished by a good distribution network and a strong competition between organised and unorganised segment. According to Financial Express, the sector will witness a growth of 15 per cent in 2010, compared to last year.

Present and the future

While the global economic ire consumed everyone in its fire, FMCG happened to be one area that stood tall and strong by overcoming its impact. Although the input costs were high, the sector didn’t witness any price rise in fairness/anti ageing creams, soaps and the likes. The Indian consumer continued to enjoy royalty and hence the sales saw a hike. The issue was balanced by downsising packaging. “The sector has coped well with recent challenges and grew by 15 per cent over the last year,” says industry chamber FICCI.

According to AC Nielson as reported by The Mint, the year 2009, also saw modern retail format stores and aggressive marketing which helped home-grown FMCG firms wrest market share from leader Hindustan Unilever Ltd (HUL). HUL’s share in the estimated Rs 8,000 crore personal care market fell to 44.5 per cent from about half last year, as others like ITC, Godrej and Wipro fought for space in markets like Uttar Pradesh, Bihar and Gujarat with a rural push, says AC Nielsen.

The sector saw rarely any merger and acquisition except for Wipro’s Rs 210 crore acquisition of United Kingdom’s Yardley. The optimism in Indian market was shown when PepsiCo, for the first time held its board meeting here. Its investments are up by another 100 million dollar from 500 million dollar that was announced last year.

Overall, the prospects of the FMCG sector remain good. According to FICCI, it has grown consistently during the last three to four years. The sector is expected to grow at 12 to 15 per cent over the next three to four years.

There is no such move towards austerity in India. Their mantra is the brighter and the more bling the better. Versace, Armani and Hermes are all reporting good demand and rising sales.

Clearly you need something special to stand out in the world’s biggest democracy. It may not be very democratic to swan around with a Hermes Birkin bag on the arm, but no doubt it gladdens the soul to be able to do so. Perhaps it is a nod to their forefathers, the maharajas, who were the last word in luxury. Maybe it is just a desire to dust off the saris.

It may be bad news for the purveyors of pink salwar kameez, but for the French and Italian designers it is only good news, particularly as their traditional markets in America and Europe remain depressed.

Elvis croons from my Ipod and it is an awesome morning :) Here are the lyrics and link to the video.