Indian manufacturers can stay competitive in the global
marketplace only through innovation. This in turn, leads to better production
processes and higher quality products—quality that meets international
standards. Indian manufacturers have an added advantage in the form of cost
effectiveness, as the wages here are much lower than those offered in more
developed nations thereby directly affecting the end price of the product.
R&D activities serve as incubators for the new ideas
that can lead to new products, processes, and industries. Although they are not
the only source of new innovations, R&D activities conducted in
industry-run laboratories and facilities are the source of many important new
ideas that have shaped modern technology.
Industries that traditionally conduct large amounts of
R&D have met with greater success in foreign markets than those that are
less R&D intensive, and they have been more supportive of higher wages for
their employees. Moreover, trends in industrial R&D performance are leading
indicators of future technological performance.
MARKETING STRATEGIES
Most manufacturers are following the strategy of tapping the
potential in the domestic market before foraying into the international market.
By leveraging the opportunities presented by the domestic market, manufacturers
can gain enough volumes to recover the cost of production. And for larger
profits the manufacturer can then look at alternate markets. The domestic
market also offers manufacturers the option of experimenting with their
innovations. Domestic customers have been exposed to international standards
and hence have become as demanding as customers from the more developed
markets. Hence, if a product doesn’t find acceptance in the domestic market the
likelihood of it doing so in the global market place is quite slim.
Manufacturers can leverage the feedback it receives from local customers to
improve product quality and functionality. Hence, many manufacturers are spreading
their marketing network all over India
Another aspect that has come to differentiate manufacturers
is the quality of service provided by them. Today, product quality more or less
matches international standards and are at par. The competition is now on the
quality of service and support provided by manufacturers. Says Piyush Patel, Director,
Amtech Power, “We have a commitment to service all our customers, to be at
their doorstep within 72 hours. Our main theme is not guarantee or warranty. We
are looking at offering more and more uptime to our customers. Giving guarantee
or warranty doesn’t make sense if I make my customer suffer for five days. So the
warranty doesn’t actually help him. Our company is more interested in offering maximum
uptime to our customers irrespective of warranty or guarantee issues. That’s
how we differentiate ourselves from competitors. “
Any manufacturer worth his salt has to offer presales and post
sales support. Customers are more comfortable with manufacturers that offer
them a solution instead of a plain box product. This can help marketers in
up-selling or cross-selling products.
Support on product information can be provided through
electronic direct mailers or regular newsletters to the customers. These
newsletters can focus on new technologies, how an application or product can be
leveraged optimally, real-time case studies, savings that could accrue, what
would be the return on investment and other similar benefits. Many
manufacturers even conduct road shows and seminars and symposiums to ensure
that awareness levels remain high and that the customer feels closer to the technology.
Dinesh Aggrawal, Country Head, Anchor says that quality,
reach and a wide network are three factors that are paramount in reaching out
to customers. Says he, “We believed in the network. We even reached villages,
and then started manufacturing switches that would meet the need of customers
in these villages. And that has become a winning force for us. We have around
61 branches all over India
Joshi feels that it is necessary to aggressively encounter
your competitors, as long as it is ethical. Manufacturers need to show always that
it has a basket full of products, which will certainly give better solutions to
customers. Manufacturers should make the customers feel that they are not
selling just a box but solutions that will enable the customer to increase
efficiency in his business.
D. B. Power, for instance, recently launched its Digital
Active Power Factor Corrector (DAPC), which is a pioneering effort from DB’s
house of R&D. Says Vinayak Joshi, DGM Marketing, D. B. Power, “Basically,
this is a sort of import substitution and this product will certainly serve the
industry in a much better manner. Because no matter which industry it might be,
be it an IT organization or an industrial unit, you don’t have any control over
the load coming into the premises. And at that time power scarcity is
tremendous. DAPC will help organizations tackle this issue effectively. DAPC
can reduce the harmonic disruption, power factor by which he could be able to
save his energy which is a scarcity anywhere in the country.”
Normally, the industry looks to a product from two points of
view--returns on investment and how much time it will take to get back the
benefits of the product. So whenever manufacturers launch such products they
should ensure the customer about the value they get for the money they are
investing.
R&D
Indian manufacturers could depend on the local industry to
meet their requirements for various product components instead of just
importing and then assembling. The common complaint is that investments
required are huge and the business volume doesn’t justify the investments.
However, several manufacturers have already dared to take on the classic
chicken or egg situation and venture into hitherto untrodden territories. The
Indian industry is growing and demand is likely to grow. But if India India India
Amtech has already played a significant role in this area. In
every available category the company has ensured features that differentiate it
from existing products. Says Patel, “If you see the energy meters, we were the
first ones to introduce prepaid energy meters with prepaid cards. In ballasts,
we were the first ones to introduce electronic reliable ballasts. In switches,
we keep innovating constantly in designs and the mechanism. This is the
strategy we have adopted to stay ahead of the competition.”
Amtech is now focusing on automation because it believes
that the future market is headed in this direction. Today, there is more
electronics in the switches and every accessory. The accessories have become
more intelligent. India
The focus of R&D should be to keep pace with the latest
technologies coming up worldwide and in addition to this, develop technology
that will out us ahead in the race. Come manufacturers have collaborated with
foreign manufacturers to develop products that will meet international
standards. In several cases, the collaboration leverages the strengths of a
particular entity to develop industry leading products in that category.
In the cables space, heat shrinkable is the latest technique
in the cables space. But with times changing cold shrink is also coming into
this space. The cold shrinkable cable accessories are made of imported silicon
rubber material. They not only have excellent electric performance, such as
high elasticity, but also excellent physical performance, a long life span and
constant shrink pressure, and they don't need a flame or special tools for
heating. Technology is changing because lots of new polymers are coming into
this space. The science is changing. The basic standard is something that can
stand up to 130 degree centigrade. However, Indian companies already boast
products that can withstand 150 degree centigrade of continuous operation
Today, Indian companies have the facilities required to carry
out all kinds of type testing. It is an open market and we need to have
end-to-end solutions to be able to ask whatever the customer demands. Manufacturers
should ensure that the need of the customer is clearly identified. Based in these
needs, the R&D team can accordingly work on correct solutions and come out
with good products. Says G. K. Banerjee, VP Marketing, Finolex, “We are
conducting surveys and trying to understand the Indian market -- what the
customer wants, where is the gap between demand and supply, is there a gap in
expectations itself and whether customer wants something that is not available.
We are trying to assess those things and working backwards to come out with a
product which is required and suits the market.”
The main motto should be quality. Quantity can come later
after quality is taken as a given. Focus on quantity which compromises in
quality should be discouraged strongly. In the international market, the
product quality can make or break a business. Says Naveen Kumar Deswal of DAV,
“Quantity will automatically follow quality. We have incorporated that into our
corporate culture. Every single entity within the organization should be
convinced about the fact that there should be quality in whatever they do.”
CONCLUSION
Indian customers need reliable quality, backup service, and
availability over the counter. The Indian market is an upcoming market.
People’s demands are increasing – people want lavish products, automation, and
manufacturers cab tap the opportunity to meet these demands.
To tap the global market, manufacturers here need to increase
their manufacturing capacity. There have been many instances where several
manufacturers have not been able to fulfill the demand in the Indian market. While
competing with multinationals this can serve as a potential recipe for
disaster. Manufacturers need to develop infrastructure in such a way that it should
have mass manufacturing capacity.
Manufacturers can also look inward at the various growth
opportunities within existing products and businesses. Instead of resting in
the success of one product range manufacturers need to look at new products and
ventures.
In today’s world where everything is changing, people are
changing, companies are changing, technology is changing if you don’t change
and keep pace with the times you are not going to survive for long. So we can’t
sit on our laurels and be complacent. We have to move forward, and always bring
in new products in the existing space as well.
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