Sector: Consumer Durables
Client: A major Indian brand of TV’s, AC’s and washing machines. Sales have declined by 40% with seven straight quarters of losses.
Promoter's Dream: To reverse the tide of red ink and build a future for sustained, profitable, growth.
The Avenues of Opportunity Recommended by OPENMIND
Focus on TV and Convergence Products: The client sought growth in the mobile business but bought red ink. OPENMIND recommended that the client instead focus on its traditional strength – television – but extend that focus into modern convergence products: smartphones, tablets and smart TV’s. By capturing a much bigger share of “eyes on screens,” the client can uncover an opportunity for sustained, profitable growth.
Adapt "Where" Positioning: The client can’t easily compete on product features against its MNC competitors, i.e. “what” positioning. OPENMIND recommended that the client instead think from the customers’ point of view and focus on where, how and when they use products. By designing uninque new products specifically for use at home, in the office or on the go, the client will discover a distinctive new positioning that will lead to sustained, profitable growth.
Build the Brand Back: The client’s biggest asset is its brand, which is well settled in the minds and hearts of consumers. The client has unsettled its brand by removing its well-known mascot and by stopping all advertising for two years. Yet the brand and mascot live on in the minds and hearts of consumers. OPENMIND MD, Mr. Richard Rothman recommended that the client recover its brand by bringing back its famous mascot in a new promotional campaign, a strategy that should lead it to many years of sustained, profitable growth.
Actions Taken: The client appreciated and accepted the OPENMIND recommendations and is working at brand recovery. There has been promoter and top management participation throughout the process.
The OPENMIND Advantage
Industry: The consumer durables industry is projected to grow at a Compounded Annual Growth Rate of 10-12% over the next five years.