consumer behaviour The myth of <strong>the</strong> challenger Popularity is a big selling point in India; it is a surrogate for good quality. Natural Ice Creams is a popular chain that started out in Mumbai with a small outlet in Juhu. It now has over 100 outlets, but <strong>the</strong>ir slogan refers to <strong>the</strong> popularity of its first outlet, which opened in 1984: ‘Natural Ice Cream of Juhu Scheme.’ Guptaji ki mashhoor kulfi (famous ice-cream from Mr. Gupta) is a roadside stall near my house that does brisk business. Guptaji, <strong>the</strong> ice-cream vendor, has cleverly referenced his popularity in <strong>the</strong> branding of his shop. People who do not know him are assured of quality because of <strong>the</strong> reference to his popularity embedded in <strong>the</strong> name of his shop. Both Natural and Guptaji understand that India’s way of assessing quality is t<strong>hr</strong>ough popularity. If it is so popular, it must be good; in fact, ‘popular’ is an oft-used name by local brands and shop owners. In this India, people buy you because <strong>the</strong>y see o<strong>the</strong>r people buy you. There is a comfort in numbers. Since so many people are buying a Maruti or a Hyundai car, <strong>the</strong>y cannot be wrong. Hence, more people go out and buy <strong>the</strong>m. Typically, most people would wait and watch until a brand or a product has proved itself in <strong>the</strong> market before <strong>the</strong>y jump. Even <strong>the</strong> early adopters here need <strong>the</strong> assurance that <strong>the</strong> <strong>new</strong> launch will be a success. This behaviour may change as <strong>the</strong> market matures and ©shutterstock.com people have more experience with consumption. But as of now, India is a market for conformity, not standing out. Such patronage of size and scale on <strong>the</strong> part of <strong>the</strong> Indian consumer has a flip side. It leaves very little room for challenger brands. Smaller players do not make <strong>the</strong> cut on <strong>the</strong> conventional criteria of size and scale. The values of being small and nimble-footed mostly fail to inspire confidence in <strong>the</strong> consumer. Across categories such as FMCG, automotive, telecom, and even insurance, smaller players have not been able to make any significant dent in <strong>the</strong> market. For instance, Maruti Suzuki rules <strong>the</strong> roost with 49.24% market share, followed by Hyundai, Honda, and Tata Motors with 21.44%, 6.56%, and 6.18%, respectively. Most o<strong>the</strong>r players have had to contend with 1% or 2%. Players such as Fiat, Nissan, and Skoda have 0.6%, 1.24%, and 1.19% share of <strong>the</strong> market, respectively. How do you win in a market where underdogs are seen as weaklings? The consumer today may have little regard for challenger values. But all is not lost for <strong>new</strong> entrants to <strong>the</strong> Indian market. Challenger brands need to display leadership values if <strong>the</strong>y want to become players of significance. There are no gains in hiding behind small ambitions, taking tentative steps, and being invisible under <strong>the</strong> garb of being a challenger. The consumer sees small play as a lack of conviction, boldness as a sign of success. You need to position scale internally in your mind, and externally in <strong>the</strong> marketplace. You might be a <strong>new</strong> entrant, you might be unsure of <strong>the</strong> market, you may even have meagre resources compared to <strong>the</strong> competition, but you must think dominance if you want to win <strong>the</strong> game. If you are low on resources, choose your segment wisely: a smaller playground is relatively easy to dominate. It allows you to dominate a chosen media, making you look like <strong>the</strong> biggest guy in <strong>the</strong> segment. Front load your launch and make it look bigger than you are. (Based on <strong>the</strong> book India Reloaded – Inside <strong>the</strong> Resurgent Indian Consumer Market.) 54 INDIAN MANAGEMENT NOVEMBER 2015
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