Tuesday, March 23, 2010

Jugaad Marketing: Lesson from India's Indigenous Genius

In case of India, it is very true that, "Necessity is the mother of invention". people here are likely to do things in their own fashion. i have been witnessing these things from very beginning of my life,but suddenly somethings turned me for writing about this.
during my recent visit to one of rural village, i went to a "Thelawala" for juice. let me show you pics of that "Thelawala"-



look at the juice shop and think what is worthy to note.
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yes, there is a small box containing ice cubes. juice vendors in India use thermocol box for keeping ice. this is what called jugaad.
another instance when i was traveling in rickshaw and rickshaw driver told me that instead of having double layered roof, it become too hot to sit inside. then I watched at roof of rickshaw, driver inserted thermocol between the roof support and roof cover which keep rickshaw a bit cool from inside.
I hope everyone of us is familiar with one jugaad- our mechanic who can repair your Bike or car without changing any part. even if your Tyre is burst, they will manage with same old Tyre by fitting a piece of Tyre inside wheel.

now the biggest question: how to define this jugaad marketing?
Jugaad can described as satisfying all the needs which exist at a viable cost.
These need exist, and must be fulfilled at affordable cost.jugaad is how the mechanics in India and Pakistan manage to keep very old and outdated machines running with crudely made parts, long after the original manufacturers have discontinued making them.

let's have some more Indian sophisticated jugaad marketing in India:

during my visit to Barelee, i saw a a two wheeler being used as career. this is a classic example of jugaad for transport.
another instance- over a long period of time we are using "Mataka" for cooling water. even today in village you can find packaged water warped in wet clothes to keep it cool.let's look some more pics-



Everything that had to be discovered has been discovered. But that should not deter us from exploring a little more. One never knows what good may come out of it.now, let's move to more complex jugaad brands.
take the example of your green grocer(sabji wallah). with unerring regularity, day after day this man makes trip from wholesaler to do rounds of your locality. he is the ultimate example of building customer relationship. He knows what you like and what you do not like. He knows what you had yesterday and he remember to get what you asked for. perhaps sometime i think, these big retailer like Wall Mart, Big Bazar have stolen this idea from a Green Grocer to have Customer Relationship Management, to track what they have purchased last time and in what quantity and many more information.That grocer is so much important in case of retailing. He continuously spray water on vegetables so that it will look fresh and he distribute items efficiently and effectively without any increase in cost.

now again i have reached to another classic example which fits best for service industry. This person has so much persuasive power that he will put knife on your throat and you will feel comfortable. Yes, I am talking about a Barber.Barber has proved that The audience is captive, waits patiently for its turn and has nothing much to do except leaf through some magazines or watch a small TV placed high in the corner. The radio is the substitute. Let us not forget the power of the hajjam of old as a carrier of messages. These hidden persuaders have the potential for non-disruptive, subliminal delivery of a brand or a social message. They are relevant for sectors where a concept sale necessarily precedes the product sale. Now I wonder why this barber concept is not being used by by marketer for promotion of their brands. this can suit the insurance products well.

Now there are three more marketer are left who daily visit your home. The Washman,Milkman and the newspaper boy. You open the door willingly because they ensure that you look well,you talk well and are well informed about what is happening around you and you be fresh.These distribution model are suppose to be copied by big marketer because our milkman deliver product same time everyday and so does newspaper boy.
Then there is the favourite haunt of the young — the chai-wallah! Ideological and heated exchanges aside, the tea-stall remains the place where they sit and exchange views on life and the world in general. There one sees evidence of evolution. The chai-wallah becomes the first outpost of retail and vending expansion. The counter, across which money changes hands, holds a variety of packaged products from edibles to personal care products to tobacco. More often than not, the stove has a pan on top, on which eggs and paranthas are fried. Thus is born instant food. This may hold interest to the many ready-to-eat, heat-and-eat and instant food preparations.

This Jugaad spirit can find a role in the supply chain of many a business. But to do that, businesses will need to think true to the meanings of this word: Improvisation, inventiveness, ingenuity and cleverness. And taking it literally, it seems a leading soft drink company has started using the Jugaad, the rural transport solution, to spread its distribution to rural areas!

Why have these not been exploited or explored in adequate measure? To be fair, some brands have tried this. Some of us will not forget the return of Coca-Cola to India splashed on the cover of business magazines with Jaydev Raja standing proudly beside a push-cart in the streets of Agra. Was that an idea before its time? Perhaps, it was. Now, to promote on-the-go opportunities, soft drink brands have taken to the streets, in a manner of speaking. The wheel does come full circle. Closer home, the Samaan Foundation seems to have taken a step in this direction. It has given rickshaw pullers an opportunity to increase their income by carrying advertisements on the vehicles, stocking bottled water, fruit juices, mobile phone top-ups, newspapers and magazines that they vend as value-added services to their fares. The rickshaw puller gets a certain commission on the sale of every item!

It’s only a matter of time when some enterprising mind will come along and amaze us with the simplicity of his quintessential Indian Jugaad tactic and show us a business model that always existed, right here in front of our own eyes.

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