“Modern Grocery Retail” & the Emerging-market consumer : A complicated courtship | McKinsey

In some “Emerging Markets”, the response to “Modern Grocery” formats has been tepid. What’s a Modern-Grocer to do ??

20 years ago, Modern Grocery Retail appeared poised to conquer every consumer market in the world. Ambitious European grocers, having blanketed their home countries with Supermarkets and Hypermarkets, began setting their sights on growth both within and beyond the continent. They held particularly high hopes for China, India, and other emerging markets, where fast-rising consumer spending seemed to presage an unprecedented demand for gleaming new stores with large assortments, wide aisles, and bright lighting.

In the 1990s, the term “modern grocery retail” was essentially a proxy for a small group of multinational grocers including Ahold, Aldi, Auchan, Carrefour, Costco, Lidl, Metro, Tesco, and Walmart…It was widely presumed that these retailers’ entry into any market would lead to the demise of the traditional trade—the family-owned grocery chains, small independent stores, and informal merchants that at the time accounted for the vast majority of grocery sales in emerging markets. The prevailing expectation was that although there would be local differences due to cultural specificities, in every country the retail landscape would eventually consist of a combination of modern formats: full-line supermarkets and hypermarkets, convenience stores, and discounters..

These assumptions have been proved wrong. Global grocery giants are struggling to grow profitably in many emerging markets… whereas, Traditional trade has proved remarkably resilient…And the market and channel structures taking shape in individual emerging economies are distinct from one another, following no obvious pattern.

Why did this happen? What, if anything, did multinational grocers do wrong? And what does it mean for the future of modern retail in emerging markets?

The Hypermarket’s shortcomings:

To understand the disparity between early expectations and the current reality, it’s useful to examine the roots of the two quintessential modern-trade formats: the supermarket and the hypermarket. The hypermarket in particular—whether in its European form (in which food anchors a massive selection of nonfood items) or its North American one (the “supercenter,” which represents the successful injection of food and grocery into a general-merchandise discount store)—was widely regarded as unbeatable. By offering tens of thousands of products in an immense building just outside or on the edge of a town or city, a hypermarket could operate at a level of productivity that other grocery formats struggled to match. Hypermarket operators passed on these efficiency gains to consumers in the form of lower prices, which served to reinforce hypermarkets’ advantage.

In their first forays into other developed markets abroad, major retailers relied heavily on the hypermarket format. When French retailers Auchan, Carrefour, and Promodès opened hypermarkets in Spain during the first years of Spanish economic reform, they quickly captured a large fraction of that country’s overall grocery sales and dictated the market structure that remains in place to this day.

Expansion across Europe was an exciting growth prospect, but even more enticing to retail leaders and investors was the growth potential of emerging markets. Over the years, that potential has become even clearer: by 2025, we expect emerging markets to account for $30 trillion in consumer spending, or nearly half of global consumption.

When multinational grocers entered emerging markets, they again relied on the grocery formats that were working so well in the developed world. But, in retrospect, it’s clear that the countries in which the hypermarket prospered had several characteristics in common: good road networks and high or fast-rising car-ownership rates, a large middle class that enjoyed decent wages and stable employment, and a high proportion of rural and suburban households with enough room at home to store groceries bought in bulk. Also, those markets had grown to maturity at a time when many women didn’t return to work after having children and therefore had time during the day to drive to and from the store. The hypermarket format draws heavily on consumers’ time, ability to travel, and storage capacity…

In Emerging Markets, retailers encountered an entirely different context. Consumers were less affluent and lived in urban areas; many didn’t own a car, couldn’t afford to travel to and from a relatively far shopping destination, had no room at home to store purchases, or all of the above..

A new respect for localism:

Further complicating matters, emerging markets weren’t just different from developed markets; emerging markets also differed from one another in nontrivial ways. That was true in the 1990s and it remains true today. Based on our research—which involved in-depth study of the retail sector in ten developing countries in Asia, Eastern Europe, and Latin America, as well as interviews with more than 20 local retail and consumer experts and analysis of channel-growth data in these markets—we’ve developed a perspective on the factors that have hampered the growth of modern trade in emerging markets.

On both the demand side (what customers want from retailers) and the supply side (the means by which retailers can deliver what customers want), different factors shape the retail ecosystem in each country. Together, these factors produce wide variability in the level of modern-trade development in countries around the world (Exhibit 1).

On the demand side, for instance, food-shopping habits have turned out to be largely localized and deeply entrenched. Emerging-market consumers tend to prepare their own meals and cook more than their peers in developed markets do, and they are accustomed to shopping at open-air market stands or small neighborhood grocery stores that offer a familiar selection of fresh food and household staples. They don’t necessarily perceive customer service at modern retailers as superior to that of the traditional trade. Customers of India’s kirana stores—small, family-owned retail shops in or near residential areas—already benefit from personal service from the store owner, free home delivery, and credit and cash rebates if they remain loyal..

On the supply side, a big factor is the informality of traditional trade: many small retail businesses rely on unpaid labor from family and friends, pay no rent because they own their storefronts, and don’t pay corporate taxes. Modern retailers cite this informality as a major challenge when competing with local retailers. A European hypermarket chain found that its considerable operating-cost advantage from better sourcing and supply-chain processes was canceled out by the fact that it was paying taxes while local competitors were not..

Another major factor affecting modern trade is public policy. India’s restrictions on foreign direct investment have limited the growth of modern retail there; in China, by contrast, city governments are assessed on the level of economic activity and foreign investment they attract, which makes them biased toward supporting modern trade. As a result, modern-trade penetration in China’s largest cities has grown significantly over the past 15 years..

A further supply-side factor in emerging markets is the fragmented supplier base, which places a natural limit on the benefits of scale. A retailer can’t source products as efficiently as it would in a mature market because it must buy from a complex network of regional and local entities. And even retailers with a national buying team won’t easily find national manufacturers who are eager to partner with them—a point we pick up on later.

Incumbent advantage is yet another powerful factor shaping retail ecosystems. Today’s market dynamics tend to become tomorrow’s market structure—so, for example, in markets in which a highly efficient wholesale system serves the traditional trade, it becomes much harder for modern grocers to gain a foothold. That said, wholesalers can also be vanguards of modernization. In Turkey, for instance, some Bizim Toptan stores have developed a substantial retail business. These wholesalers-cum-retailers illustrate the fact that ecosystems in emerging markets are partly shaped by players that can concentrate and coordinate a critical mass of what otherwise is a complex set of routes to market..

“Seven” strategic levers for success:

In parts of the world where the market structure is itself still in a formative stage, retailers need a bespoke strategy. Our research and experience suggest seven strategic levers that lead to success in emerging markets. These levers—having to do with delivering what consumers want, working effectively with other players in the ecosystem, and generating lasting productivity advantages—reflect perennial concerns for retailers everywhere, but they are especially critical in helping retailers secure a profitable future in the world’s fastest-growing economies.

The levers are by no means comprehensive. For one, they don’t touch on digital technology, which may well be just as important in emerging markets as in developed ones; indeed, rapid adoption of smartphone technology may allow emerging markets to leapfrog more mature markets and reconfigure the value chain farther upstream (for example, by giving smaller suppliers direct access to national and even global markets). Rather, we draw attention to areas that we believe require deliberate action in emerging markets-

1. Prioritize proximity.

2. Keep prices low—and make sure consumers know.

3. Obsess over productivity.

4. Make the business case to manufacturers.

5. Educate policy makers on the benefits of modern trade.

6. Consider partnering with the traditional trade.

7. Adopt a city-based strategy.

For any modern retailer, success in emerging markets isn’t guaranteed. Our research confirms the complexity and local specificity of market development and the degree to which it depends on initiatives taken not just by retailers but also by governments, manufacturers, wholesalers, and others in the local retail ecosystem. International retailers thus need to become experts at local tailoring. That said, operating in emerging markets still unquestionably requires excellence in core retailing competencies: marketing, merchandising, supply-chain management, and talent development, to name just a few…

Modern Retailers that excel in all these areas in the context of markedly different emerging-market structures will, in a sense, have conquered the world..!!

“One Branding” : “Uniting the Employer, Corporate & Product Experience” | BCG

Every day, the Digital-World shines a spotlight on Brand inconsistencies…Employees & potential recruits might get one impression online, customers and partners might have another experience, while investors and influencers might see an altogether different picture…The result is brand confusion or worse : “Brand Conflict ” !!

Consumers today, led by the digitally native Millennial generation (ages 18 to 34), expect much more from brands. They increasingly require a holistic and authentic experience across all the online and offline ways they interact with a company. When we surveyed them, Millennials reported that the number one way that brands can engage them is to have an “authentic purpose.” Many consumers expect to engage more actively in a two-way dialogue with brands—and the Internet gives them a megaphone to express their positive and negative opinions loudly..

The global business environment also demands more from brands. The service sector now makes up approximately 70 percent of most developed economies, and that share is even higher when it includes the many products that have a service component. People have become a critical resource for service-based industries: labor costs are higher than capital costs in many service companies..

Likewise, people have also become an essential component of branding, a field that was once highly product oriented. Brand experiences are now largely shaped by the people on the front lines who interact daily with customers and must meet their rising expectations. Employees have become, in effect, brand ambassadors. Brand management of the future requires, therefore, even fuller and more consistent engagement among the people inside and outside the company—both those who experience the brand and those who represent it..

The problem is that companies too often focus on only one or two aspects of their brand image. Many ignore employees as brand advocates or else narrowly relegate marketing communications for employees and recruits to the human resources department. People often assume that a strong product or corporate brand alone will attract candidates and customers. To become part of its customers’ lives, however, a company’s product and brands will first have to be “lived” by its employees.

To succeed, companies today must elevate employer branding to its rightful place among the other major pillars of corporate, product, and service brand management. At the same time, they must create harmony among customer experiences with the product, the company, and employees. We call this new concept of integrated, employee-powered marketing One Branding...A tight linking of all the aspects of brand management ensures that brands leverage their most significant asset—employees—to create more powerful and relevant brands for today’s changing world. One branding also significantly boosts performance..

THE REWARDS OF ONE BRANDING:

Only the harmonization of corporate, product, and employer branding ensures that everyone involved “pays into” the one-brand account, together raising the brand’s value. We have found that, in many cases, behind this success lies strong employer branding..

Companies that have strong employer brands tend to outperform those that do not. To measure the strength of employer brands, we asked students in MBA programs to rate the attractiveness of prospective employers. A BCG analysis of 39 global companies over the ten-year period from 2003 through 2012 found a positive correlation between the strength of employer brands and the average growth in total shareholder return (TSR)..

We found that the correlation between an employer’s brand and TSR was stronger at companies with a strong employer brand than at those with average or poor ratings. Moving into the top leagues of employer branding is, therefore, worthwhile not only from an HR perspective but also for its medium- to long-term impact on company value..

Not every company must be a leader in all THREE Brand-management disciplines…But all companies must gain a basic command of each, as they discover how to differentiate themselves in the areas important to their business. Only then will they achieve more integrated and consistent brands..

The Power of Employer Branding:

Even though it has become central to how a brand is experienced, employer branding is frequently the missing ingredient in achieving the promise of one branding. Employer branding represents a company’s brand promise to the people who work there, the people who want to work there, and the people the company wants to recruit. HR leaders cite employer branding as a high priority, but not even 10 percent of prospective employees during job interviews know the key elements of an employer’s brand, according to one European survey.

To succeed in today’s complex business environment and deliver a unified experience across all the brand dimensions that are important to future success—especially through its people—every company needs to define its unique advantages for employer branding and then work hard to cultivate these differentiating factors more effectively. (See Exhibit 1.)

To discern how companies are giving employer branding an equal place inside a unified brand, we interviewed executives in the European operations of ten global companies with leading brands. In our work with companies around the world, we have found these leaders’ insights to be broadly applicable to many other regions.

Consider the success of the employer-branding campaign recently launched by the adidas Group, the world’s second-largest manufacturer of sporting goods, with €14.5 billion in sales; 50,700 employees worldwide; and a brand valued at $7.5 billion by Interbrand as of 2013.

In 1998, Matthias Malessa, chief HR officer of the adidas Group, established an HR marketing department that focused on its external presentation as an employer. “Today, employer branding is a perception index of people inside the company that projects to the outside and says, ‘Check this out. This is how it looks here. If you think it looks good, join us. If not, we’re not for you”..

For the first time, the features of the campaign were developed with employees on the basis of their experiences working for adidas. The company surveyed employees of all its brands worldwide. Five main branding messages resulted…Each country has the flexibility to highlight the message that has priority for the employees there..

“More and more young employees are demanding that their voices be heard,” says Malessa. “I ask my people, ‘How do you perceive this company?’ Then I build my employer-branding story based on what they say.” For instance, one message involves social and environmental responsibility. The motto “to make the world a better place” connects this message into a unified product-, corporate-, and employer-brand strategy..

The success factor is that employees are free to share their experiences with the adidas culture online. “In the digital age, it’s important to win over your employees as brand ambassadors, but for it to function, there also have to be rules,” says Simone Lendzian, corporate communications manager. Social-media guidelines orient employees to their rights and responsibilities when communicating as brand ambassadors during work hours..

The company had a lot of discussions about whether each brand in the adidas family—which includes Reebok and Rockport in addition to adidas—needed its own employer branding. “We believe it all has to flow into one employer brand that is all-inclusive and covers the entire company,” says Malessa..

Six Guiding Principles for One Branding:

To put one branding into practice, a company must keep in mind six overarching principles about how employer branding relates to its overall brand portfolio.

Credible positioning starts with a well-defined process. At the heart of employer branding lies a convincing employer value proposition (EVP): the promise of value that employers make to their current and future employees. The emphasis should be on the uniqueness of the company. Only with a differentiated strategy can a company achieve competitive advantage.

To ensure that the EVP is relevant and differentiating, it must be based on solid data and integrated into the overall HR strategy process. First, market research compares the internal understanding of the company’s current positioning with the motivations and needs of external target segments. This is translated into a credible brand position and concrete actions and then anchored in the company’s organization structures, roles, and responsibilities. (See Exhibit 2.)

Employee motivations guide Employer Branding – to attract and retain good people, a company must appeal to both logic and emotion. Effective employer branding uses a “double perspective” of internal and external views to discover the elements of the brand experience that drive engagement among existing and prospective employees…Qualitative and quantitative market research can identify motivations that fit the brand, whereas creative techniques can uncover even deeper insights. Rather than simply delegating market research to an outside organization, all internal and external stakeholders should be invited to speak their minds through an active dialogue with the marketing, HR, and strategy departments..

Only a brand that is lived every day can be experienced – Employer branding can be only as strong as the health of the company’s culture.A true standout is the culture of Google, the world’s largest Internet company by market capitalization, with $50.8 billion in revenues; 45,000 employees worldwide; and a brand valued at $93.3 billion by Interbrand as of 2013. “Our employer value proposition is the result of our company culture as we live and experience it,” says Frank Kohl­-Boas, Google’s head of HR in northern Europe. “As our motto says, ‘Do cool things that matter.’ I am convinced that you can recruit and retain knowledge workers only if you give them the room they need to think freely and you offer them interesting work. If you do this, candidates and employees will say, ‘I can earn money elsewhere, but where else can I be a part of things, be myself, and grow ? ’”

At Google, responsibility for employer branding resides in HR, because it is understood less as a marketing task than as the management of corporate culture. A core team, under the leadership of a chief culture officer, works with local culture ambassadors who support the topic voluntarily in addition to their core jobs. The goals are to find the right people to hire, to ensure the internal multiplication of knowledge, and to provide the freedom for product discovery and invention..

“We don’t do any big marketing campaigns—neither for recruiting nor for Google as a brand,” says Kohl­-Boas. “Instead, we invest in employees who develop the brand. We trust that a lot of people will come into contact with our products and associate the company with the quality of our products. If users like our products, the customers and shareholders will come.”

Employees are the best brand ambassadors – The most authentic sources of employer branding are employees who can communicate credibly about the company and make its culture tangible..

Consider eBay, well-known as a global leader in online retailing and payments, with $16 billion in revenues; 30,000 employees worldwide; and a brand valued at $13.2 billion by Interbrand as of 2013. At eBay, employee referrals are the most important recruiting component by far. “When you shape your employer branding out of the culture and put your people at the center of it, the advantage is that you can motivate them to channel their pride by recommending the company,” says Tobias Hübscher, eBay’s senior manager, European employee communications.

“Referral campaigns save headhunter fees and ad campaign costs and helped us get budget for employer branding and resources for talent acquisition,” he adds. “Basically, we see referrals as being a lot more effective and working better in the recruiting process.”

Social media is only one tool in the toolbox –  Despite all the hype about social-media platforms such as Facebook, YouTube, and Twitter, every channel must be closely analyzed for its benefits and risks. If a company does not have confidence that it can present itself authentically and engage in open dialogue with consumers through certain mediums, it should not use them until the advantages outweigh any potential damage.

The social-media strategy is well defined at Heineken International, the world’s third-largest brewing company, with €19.2 billion in revenues; 85,000 employees worldwide; and a brand valued at $4.3 billion by Interbrand as of 2013. “When it comes to social media, you have to know exactly what you want,” says Dario Gargiulo, global social-media manager at Heineken International. “A lot of companies do social media only because they think it’s good to have a presence everywhere. Instead, you have to use every social channel differently and with a specific aim. You must take the time to find out which channel should be used for which message.”

Gargiulo recommends focusing on the brand message and consumer attitudes on social media rather than communicating all of the company’s activities. “In social media, you immediately get consumer reactions about what’s important and what’s not,” he says. “It’s about the connection with real life.”

To integrate brand management disciplines tightly, stay loose – The players in one branding are less like a conductor-led orchestra than a leaderless jazz band. In the latter, the optimal combination of players is more important than who leads at any point in time. Well-executed examples of one branding show that there is no universal solution: although HR is often in charge—for instance, at BMW and adidas—several companies we studied maintain an ongoing, constructive conversation among the different components of branding, including marketing, communications, strategy, and HR. The corporate brand often takes the lead when the path forward is not clear.

At eBay, employer branding is jointly managed by the HR, talent acquisition, communications, and marketing departments and covers all eBay brands. Both internal employer culture and external campaigns are steered by communications in the local country unit.

Regardless of the organization design, marketing and HR must work together as equals. Each of the functions has plenty to contribute: HR has the competencies needed for strategic personnel planning and the ongoing development of company culture. And marketing can bring its “detective skills” to the table—by feeling out and establishing a unique positioning for employees and job applicants..

The era of one branding is dawning. Employer, corporate, and product branding will only grow more closely integrated..

Although we see no one-size-fits-all strategy that can address all the challenges ahead, we have observed this about the leaders: one branding works only if executives in charge of HR and the brand disciplines make it their common goal and have the courage and flexibility to work together.

Companies that are willing to cross organization boundaries and experiment with this new approach now will discover the proven benefits of one branding. Those that do not move in this direction risk falling behind their more integrated and nimble competitors..!!

The “Four Pillars” of “Blue Ocean Leadership” | INSEAD

To unleash employees’ untapped talent and energy, leaders need a strong repertoire of actions, not just better awareness and empathy…!!

Most leadership programmes are generally designed to hone the cognitive and behavioural skills of leaders with the implicit assumption that this would ultimately translate into high performance. Leaders are accordingly called on to develop traits like self-awareness, self-regulation, and empathy, for example, all of which require deep self-reflection and introspection to assimilate into a person’s being.

While cultivating such values are important, when we asked people to look back on these programmes, most reported not seeing a marked change in leadership caliber..

As one executive put it, “Without years of dedicated efforts, how can you transform a person’s character or behavioural traits? And can you really measure and assess if leaders are embracing and internalising these personal traits and styles? In theory yes, but in reality it’s hard at best.” In the end, millions of dollars were often spent, excitement was initially generated, but real leadership change did not set in..

Pillar One: Focus on acts and activities.

Blue ocean leadership, in contrast, is action-based, just as strategy is. It focuses on what acts and activities leaders need to do to provide a leap in motivation and business results driven by people, not on who they need to be. It’s the difference between being asked to be motivating versus being asked to provide those you lead with real-time feedback and best practice lessons that internally motivate and guide those you lead to up their game while feeling valued. The summation of these acts and activities is the leadership equivalent of a company’s strategic profile only here the aim is the development of a compelling leadership profile grounded in actions that are easy to observe, measure, and are directly linked to performance. This difference in emphasis has an important consequence for the time and resources needed to bring about a change for high performance. It is markedly easier to change a person’s acts and activities, than their values, qualities, or behaviours.

Of course, changing a leader’s activities is not a complete solution, and having the right values, behaviours, and qualities is important. But changing acts and activities is something that any individual can do, given the right feedback and guidance..

Pillar Two: Connect leadership to market realities by engaging people who confront them.

We observed that the leadership approaches employed by organisations are often generic and detached from what firms stand for in the eyes of customers and the market results employees are expected to achieve. At one insurance company, for example, call center personnel were tasked with fulfilling customer claims rapidly, while their frontline leaders maintained a hands-off approach to getting the claims department to cut checks rapidly.  Call center personnel rightly felt set up to fail, hugely demotivated, and let down by their leaders.

Blue ocean leadership, in contrast, focuses on what makes effective leaders, not in a vacuum but in light of the market realities their organisations confront and their direct reports must deliver on. Blue ocean leadership does not subscribe to a generic approach of common leadership acts and activities much as strategy does not subscribe to the same strategic profile across organisations. Instead people who face market realities are asked for their direct input regarding what acts and activities their leaders do that hold them back and what they need from their leaders but aren’t currently receiving to be their best and effectively serve customers and key stakeholders. When people are asked to help define the leadership acts and activities that will make them thrive and are connected to the market realities against which they need to perform, people get the type of leadership they and their organisation need and are highly motivated to share their energy and perform to the best of their abilities. As one employee put it, “I am under constant pressure to produce market results. I need the decisions and actions of my boss to support me to succeed in achieving market results. Currently there is a disconnect here.”

Pillar Three: Distribute leadership across different management levels.

While the market realities that organisations face today demand that there should be leaders at every level, the majority of leadership programmes we observed still remained largely focused on the top. But the key to a successful organisation is having empowered leaders at every level. It’s an illusion to expect or rely on top management on its own to deliver high performance especially as outstanding service all too often comes down to the motivation and actions of frontline leaders who are often in closest contact with the market. Executives need to push responsibility down in the organisation so that people on the frontline can deliver world-class service. Organisations need to develop effective leaders deep in their organisation by distributing leadership across different management levels, but that was often not the case.

Blue ocean leadership addresses this need by focusing on distributed leadership, not top leadership. By distributed leadership we refer to leadership distributed at the senior, middle, and frontline levels. Blue ocean leadership sees leadership as needed at all three levels to unlock the ocean of unemployed talent and energy that stretches deep into organisations. It also understands that these three levels are different enough from one another. Each requires a different leadership profile to be effective since each has a different positional power, task environment as well as focus on and interaction with the external environment. The factors that define good leadership are derived by the acts and activities leaders need to take at each level to create a leap in value for both employees and customers. In this way, blue ocean leadership, like blue ocean strategy, is about creating a nonzero-sum, win-win outcome. As we’ve heard repeatedly, “Almost everyone leads someone, not just the top. But when it comes to leadership, we focus on the top. The truth is 90% of our people don’t even have contact with them so how is their greatness supposed to transform our organisation? We need effective leaders at every level.”

Pillar Four: Pursue high impact leadership acts and activities at low cost.

Leadership practices are all too often seen and treated as something added on to people’s regular work. But with secretaries and administrative staff in most organisations already cut back to the bare minimum and the market reality intense, most leaders’ plates are already full. Finding the time to do one’s regular job is tough enough, let alone attempting to up one’s game. So a step-change in leadership strength rarely occurs. Time is just not enough.

Blue ocean leadership recognises this. It breaks the trade-off between impact and cost by focusing as much on what acts and activities leaders need to eliminate and reduce in what they do as on what they need to raise and create to unlock the ocean of unemployed talent and energy to drive high performance. In the context of leadership, high impact refers to achieving high motivation and engagement of people to drive business results while low cost refers to a lower investment of time by leaders, which is their most expensive and limited resource.

Our research has found that many of the acts and activities that take up leaders’ time actually work against them being effective and can even be resented by those below them, not appreciated by those above them, and are an energy sapper for the leaders themselves. By expressly eliminating and reducing these acts and activities, leaders’ time is freed to focus on new acts and activities that make a real impact on leading and producing business results driven by people. Without freeing up leaders’ time in this way, it is often no more than wishful thinking that leaders will have the time to up their game..

Conventional Leadership Development Appoaches Blue Ocean Leadership
Focus on the values, qualities and behavioural styles that make for good leadership under the assumption that these ultimately translate into high performance. Focus on what acts and activities leaders need to undertake to boost their teams’ motivation and business results, not on who leaders need to be.
Tend to be quite generic and are often detached from what organizations stand for in the eyes of their customers and the market results their people are expected to achieve. Connect leaders actions closely to market realities by having the people who face market realities define what leadership practices hold them back and what leadership actions would enable them to thrive and best serve customers and other key stakeholders.
Focus mostly on the executive and senior levels of organizations. Distribute leadership across all three management levels because outstanding organizational performance often comes down to the motivation and actions of middle and frontline leaders who are in closer contact with the market.
Invest extra time for leadership practices added on to people’s regular work. Pursue high impact leadership acts and activities at low cost by focusing as much on what leaders need to eliminate and reduce in what they do as on what they need to raise and create.

To put blue ocean leadership in action, we adapt the analytic tools and frameworks of blue ocean strategy to the leadership context. The result is the Leadership Canvas, the Leadership Profile and the Blue Ocean Leadership Grid all of which are grounded in acts and activities, easy to understand and communicate and that engage more people in an organization…The tools and methodology point is very important…

Without that it is very hard for research to do more than inform but practically address the challenges of leadership development for high performance…!!

“Global Luxury Brands” : Why India matters ? | by: Sapna Agarwal | Livemint

A look at the issues related to the potential of the ” Indian Luxury Market “, estimated to be worth $14 billion a year..!! 

A large and growing middle class in India is not only buying luxury goods and services but, inevitably in an Emerging Market the size of India, is also redefining the luxury market..

There’s an image of India—one that has persisted despite being a cliche—that is contoured by contrasts: Maharajas on the one hand, in full regalia and motorcades of Rolls Royce limousines, and poverty and hunger on the other. As India of the 21st century aspires to rank among global manufacturers and service providers, the luxury that once defined the Maharajas is a matter of widening aspiration, too..

The national airline—whose mascot was the Maharaja—no longer carries just the privileged few to the Swiss Alps and other luxury holiday destinations. A large and growing middle class in India is not only buying luxury goods and services but, inevitably in an emerging market the size of India, is also redefining the luxury market. But while India tops the list of tomorrow’s markets, it is yet to make it to the top in the priority markets list of luxury marketers..

What will it take for luxury marketers to tap into India? And what will it take for India to realize its luxury potential to the maximum? Experts and marketers gathered at a two-day Mint Luxury Conference in Mumbai on 31 October and 1 November to discuss some of these issues and challenges. Firstly, the definition of the Indian luxury consumer needs to change—start with banishing that cliched image of the Maharaja. “Luxury cannot be limited to just the very top or 0.01% of the population,” says Abheek Singhi, senior partner and director, Asia-Pacific leader-consumer and retail practice at consulting firm The Boston Consulting Group.

He estimates the Indian luxury market to be worth $14 billion. But for a country with a population of 1.2 billion, there are just 117,000 people who are classed as ultra-rich—people who have family wealth of over Rs.25 crore or earn Rs.3-4 crore a year, says a July report by Kotak Wealth Management. This segment of consumers prefers to do their luxury shopping abroad. In the local context, luxury denotes brands that globally are a notch lower than the finest, appealing to a wider audience of the top 1%, 5% or even 15% who have the aspirations and the money to buy them, said Singhi..

To grow the luxury market, “marketers selling in India need to be innovative and reach out to new consumers”, says Sanjay Kapoor, managing director of Genesis Colors Pvt. Ltd, parent of Genesis Luxury Fashion Pvt. Ltd whose portfolio includes brands such as Bottega Veneta, Burberry and Canali. According to Kapoor, luxury marketers need to continually “upgrade” consumers used to buying premium to luxury goods and services. “It’s a continuous process of educating people about brands to grow the existing business,” says Kapoor. Adding new brands and opening new stores is the business part of the same process..

There are FIVE Luxury Consumer Segments emerging in India, says Singhi : Classpirationals, who want to blend in with the classes; Fashionistas, or Trendsetters; Experiencers who love travelling, wine tasting, etc.; Absolute Luxurers for whom luxury is about exclusivity and customization; and Megacitiers—part of the global elite..

As such, the Indian luxury consumer is spread across the metros, tier-I and tier-II cities. “Close to 40% of the Indian luxury consumers are living outside of metros and shop on their travel overseas or in the metros,” says Singhi..

Firms seeking to expand in India speak of infrastructure challenges. For instance, India got it’s first luxury mall—DLF Emporio—in south Delhi in 2007. Now, there are just two more luxury malls in the country. “The biggest impediment to the development of the luxury market is the lack of infrastructure and an environment,” says Rahul Prasad, managing director (Asia-Pacific and Middle East), Pike Preston Partners Ltd, a boutique advisory firm on mergers and acquisitions in the fashion and luxury segments..

Meanwhile, with the new National Democratic Alliance (NDA) government in India, businesses are hopeful regulatory hurdles will be resolved. “The new government’s approach has energized a number of companies, including multi-brand retailers and international retailers..,” says Pierre Mallevays, founder and managing partner of Savigny Partners LLP, a corporate finance advisory firm focusing on the retail and luxury goods industry..

At the Mint Luxury summit, Nirmala Sitharaman, commerce and industry minister, agreed to look into the requirement of 30% sourcing from domestic companies for single-brand foreign retailers who are allowed to invest 100%..

The challenges remain daunting. According to Armando Branchini, vice-chairman of the Altagamma foundation, a conglomerate of several high-end Italian companies, there are 17 Italian luxury brands in India at the moment, a number that has remained unchanged since 2005..

British luxury brands are focusing their efforts in other markets such as China, says Charlotte Keesing, director at Walpole British Luxury, a consortium of British luxury retailers like Jimmy Choo, Harrods and Burberry. Eight years ago, India and China both were on the long-term radar of luxury product marketers..

Today, China has become one of the biggest growth drivers of such products, and India is yet to take off…“ There are only 18 of 90 British luxury retailers present in India today and less than a dozen are looking at entering the market in the next two years,” said Keesing…

“South India’s Real-Estate Hotspots” for Investments | by: Juggy Marwaha | Realty Plus

Until only recently, the South Indian Real-Estate Market was known as highly price-sensitive, with buyers primarily focused on the Affordability quotient…!!

Developers had to adopt a strategy to entice potential end-users and investors by offering their products in the right price band. However, with more and more foreign companies establishing their back offices in prime locations of South Indian cities and offering power jobs to the local populations, the South Indian economy has witnessed rapid growth over the last few years. This has visibly reflected on their real estate markets, as well..

Of late, the most important South Indian real estate markets – Bangalore, Chennai, Hyderabad and Kochi, have been faring very well. This dynamic was evident even when the nation was going through a phase of low sentiments. While the burgeoning IT sector in these cities is the main reason behind the real estate boom in these cities, some of them also have a rapidly strengthening industrial base which is further augmenting real estate demand..

Bangalore :

The commercial office leasing trends in Bangalore clearly reflect that the city is topping all others in terms of space and job creation. IT, ITeS and retail are driving employment creation in the city. Bangalore is expanding in all directions, and with most phases of the Metro on track in terms of deployment, Bangalore has emerged as one of the best investment destinations for affordable, affordable luxury and luxury segment housing.

North Bangalore has seen residential prices doubling in the last 4-6 years, and many other pockets have witnessed good appreciation as well. Brigade Gateway, one of the best integrated townships in Bangalore featuring the World Trade Centre, a mall and a 5 Star hotel, was launched at a price of Rs.5,000/sq. ft. about 4-5 years back and is now transacting at above Rs. 10,000/ sq.ft.

There are numerous such examples wherein reputed developers and landmark developments have been instrumental in prices doubling and going even higher in the last 4-6 years. The finest developments in Whitefield by Sobha, Brigade, Prestige, Total Environment and Chaitanaya have practically doubled in terms of capital values in the last 5 years.

Chennai:

Residential property prices in Chennai have escalated the fastest among the cities in India, witnessing an appreciation of almost three times of what they were in 2007. However, Chennai still faces supply constraints in its prime locations in terms of new and organised development..

Traditionally, buyers in Chennai were hesitant to move to the suburbs, as the options available in the key pockets were highly priced. Very similar to the cities like South Mumbai, Delhi and Kolkata, buyers in Chennai are very particular about address and pin code value. As the city is in expansion mode with the rapid development in Chennai’s social and physical infrastructure, the suburbs and extended suburbs such as Velacherry, Peringudi and OMR belt are witnessing an upsurge in its property prices with corresponding demand.

Areas like Ayanavaram, Virugambakkam, Nungambakkam and Ashok Nagar have recorded the maximum appreciation. With limited supply and few organized developers in Annanagar and Kilpauk, end-users and investors are finding prices attractive in these neighbouring areas. With noted developers such as Chaitanaya, Vijayshanti and Arihant-Unitech active in these areas, there is a steady increase in demand.

The Central business district of Chennai, Nungambakkam, has managed to maintain the highest appreciation values with only few organized developers active in the area. However, with the Metro rail route passing through Ashok Nagar and with host of reputed and local developers’ active along the belt, a considerable amount of demand has shifted to this micro-market.

This is because of the presence of large commercial and entertainment-shopping establishments such as Phoenix and Forum and the availability of adequate social and physical infrastructure such as quality educational institutions and hospitals have proven beneficial in garnering demand from end-users and investors.

The three key growth drivers of IT / ITES, automobile manufacturing and education sector are instrumental in driving the job creation in Chennai. The price appreciation in specific pockets forecasts to be extremely good over the next 12-18 months. Some of the projects which are garnering attention from end-users and investors are Falling Waters in Peringudi, Oceanique on ECR Road, Embassy Residency and Pristine Acres in OMR.

Hyderabad:

Taking in consideration the current prevailing prices, developers have very little room for profit. Properties here are value buys in all respects, and one cannot go wrong with buying into quality projects at the current price levels with an investment horizon of 3-5 year. The Telangana agitation was the primary reason for the stagnation of prices in Hyderabad.

While Hyderabad’s average prices may reflect stagnation, there are multiple exemptions to this rule. A few such instances are Jayabheri’s Orange County, which has seen 33% absolute appreciation within a horizon span of 3-4 years and Jayabheri’s Silicon County, which has almost doubled in the last four years. Aparna’s Sarovar Grande has seen about 43% absolute appreciations in the last 12-15 months.

Good projects by reputed developers have shown very robust capital appreciation in the city. Though Bangalore and Chennai has clocked better appreciation values, Hyderabad by no means has lacked appreciation growth – it has merely been selective.

The socio-political and economic scenario is now far more favourable for the real estate sector. Hyderabad’s real estate market is likely to grow at a relatively faster pace to give renewed competition to cities like Bangalore, Chennai and Kochi. In the mid-to-long term, investor confidence in Hyderabad real estate will emerge in force once more. Companies like Facebook, Google and Apple have long-standing plans to expand their bases in Hyderabad – a factor which will work in favour of faster appreciation.

One of the hottest emerging locations is Vijaywada, where land prices have increased by almost 300% because of speculation. This renders Vijaywada unviable for residential projects over the short term, but a price correction from the speculative levels in anticipated over the next one-and-a-half years. After that, many more corporates will move into Vijaywada, thereby boosting residential demand as well.

Kochi:

Kochi is an emerging metropolis where modern urban lifestyles are merging with the city’s traditional framework. During its initial realty boom, Kochi grew exponentially, with more people migrating to the city and consuming even the outlying catchments of Kakkanad, Palarivattom, Vytilla, Edappally and Kadavanthra.

Development of IT/ITES projects such as the Kochi Smart City and initiatives to channelize traffic and improve connectivity – such as the Mobility Hub at Vytilla – have fuelled the current real estate boom, with more and more developers cashing in.

The days when builders in Kochi focused only on affluent buyers are over. The Kochi residential real estate market is now replete with affordable housing projects, which account for about 60% of the total housing development in the city. The soaring land prices have made it difficult to own or build independent houses, which were once the most popular configuration in Kochi. There is an increased demand from the emerging mid-income segment that wants homes packed with amenities at affordable prices.

The demand for budget housing is so strong that supply has penetrated even the poshest areas. The prime localities that offer luxury multi-storey apartments, such as Marine Drive, are seeing the arrival of affordable and mid-income housing projects in the vicinity to the more expensive waterfront apartments and villas.

While the global recession in 2009-’10 impacted all markets across the country, there was no decrease in Kochi residential real estate between 2012-13. Kochi is an investor market with many investments coming in from the Gulf via NRIs. In most cases, flats in new projects are sold out to the tune of 80% very quickly, but less than 20% would be actually occupied.

Luxury apartments on Marine Drive were quoted at Rs. 3800-4000/sq.ft in 2008-’09. Now, the rates for premium apartments in this area have almost doubled. Mid-range apartments by local developers are usually sold out by upto 90% of the inventory over a period of 1.5-2 years. The apartments in non-prime areas need to sell at price tags of upto Rs. 70 lakh….!!

“Go Guerrilla !!”; “5 Unorthodox Ways to Market Your Brand” | by: Mike Trigg | Entrepreneur

Before a million pails of cold water brought the disease to global attention, many people had never heard of Amyotrophic Lateral Sclerosis, or #ALS…!!

But after a summer of ice bucket challenges, the devastating motor neuron disorder now has an astonishing level of awareness…Though the campaign didn’t originate as a deliberate marketing strategy, it’s a great case study of the power of guerrilla marketing in the social-media age.

Inexpensive, small scale and non-traditional marketing tactics can be extremely effective ways of promoting your brand if the idea catches the public imagination and goes viral. But so-called “Guerrilla Marketing” covers a huge variety of activities, from PR stunts to viral videos…

To determine if there’s a tactic that will work for your business, consider these five tips for crafting an effective Guerrilla-Marketing campaign that will resonate with your target audience…

 

1. Have a Hook:

If your product or service is something people don’t ordinarily care about, you need to give it an attention-grabbing hook, like the ALS ice bucket challenge.

Dollar Shave Club made the hardly earth-shattering idea of mail-order razor blades really engaging with a hilariously offbeat and low-budget YouTube video. Within two days of launch the commercial went viral, generating 12,000 new orders.

Or try connecting with people in unexpected ways, like this fitness company ad that appeared on German subway trains showing a man hanging out to a weight, rather than a subway railing…

2. Be Provocative:

Controversy sells so if you’re willing to break taboos and speak truths that people usually prefer to ignore, you can turn heads. This is a common tactic for charities and non-profits, like the visually arresting ketchup packs created by Campaign Against Landmines. The packets say, “In 89 countries walking on a mine is still routine” and on the flipside is a pair of legs…When someone opens up the ketchup packets, it depicts blood on the legs…

My company Hightail has indulged in the occasional provocative but fun stunt. We once handed out free cronuts to attendees at a competitor’s annual conference….The pastry packaging came with step-by-step instructions, including “Discard Box”. It was a playful and controversial (we were kicked out of the venue) way of targeting a very specific audience..

3. Sell an Idea, Not a Product:

As a startup, your passion for what you do and vision for changing the world is incredibly powerful. Stating that vision boldly and selling your product based on emotional appeal, not rational argument can give you an advantage.

Salesforce did this brilliantly with its “No Software” logo that evangelized the company’s underlying vision of simple, inexpensive, cloud-based services rather than focusing on what its product actually does. I still remember Marc Benioff’s ad in which a fighter jet shoots down a biplane. Though it was a little cheesy, the image represented a powerful idea that ultimately lived up to the analogy.

Also, you don’t have to be starting out to harness the power of ideas. IKEA celebrated the 30th anniversary of its popular Billy bookcase by filling 30 of them with books and placing them on Bondi Beach in Australia…Beach goers could swap a book for one of their own or donate to a literacy charity. By focusing on the popular beach pastime of reading, the furniture company got people’s attention while still promoting its product..

4. Make it Tangible:

Physical manifestations are great guerrilla marketing. Translating your idea into an object or event can help explain a product, especially digital services…

A Westfield shopping mall in California installed a real-life Pinterest board to act as an interactive store directory. Though Pinterest didn’t initiate the idea, by approving the use of its logo, the company got agreat real-life demonstration of its online service.

Even better, if you can capture your physical-world tactic and share it online, you can get a viral multiplier.  Adobe cleverly achieved this with a bus stop prank in which they Photo-shopped waiting passengers into a fake digital movie poster, as a way to advertise its Adobe Creative Day. The “candid camera” appeal of this stunt has garnered more than 22 million views on YouTube..

5. Take a Risk:

Some of the best ideas sound unbelievably dumb on paper (and may still, in fact, be dumb when you actually do them). They may flop, but you won’t know until you try. Many guerrilla campaigns get attention precisely because they are unusual, outrageous or unconventional. So don’t worry about people laughing at you.

For instance, ride-sharing service Uber has promoted its service by delivering ice cream or puppies to customers. In December 2013, Canadian airline WestJet asked passengers boarding a flight to Calgary what they wanted for Christmas then delivered these gifts when they landed.

Whichever style of #GuerrillaMarketingCampaign, you devise, remember to document and publish everything…Most #GuerrillaMarketing, is by its nature small in scale but it’s the shared links, laughs and likes that will make your campaign a big success…!!

The Glittering “Power of Cities” for “Luxury Growth” | McKinsey

The global economy is experiencing an unprecedented shift toward emerging-market cities. Here’s a road map of where luxury-goods companies should compete in the next decade…!!

An Economic Re-Balancing of Great Scale & Speed is occurring from the West to the East and South…In fact, we are observing one of the most significant economic transformations the world has seen: 21st-century China is urbanizing on a scale 100 times that seen in 19th-century Britain and at TEN Times the speed…This means that the shift currently making Asia—once again—the world’s economic center of gravity is 1,000 times larger than was witnessed during the Industrial Revolution..

One of the most dramatic aspects of this emerging-market economic revolution is the growing power of cities and the extreme growth concentration in a limited number of megacities. The world’s top 600 cities (measured by absolute GDP) are expected to drive nearly two-thirds of global economic growth by 2025..

Massive urbanization will continue across emerging markets, which will envelope three-quarters of these large cities. It is projected that by 2025, there will be 60 megacities—more than double the current number of urban behemoths—where GDP will exceed $250 billion, accounting for a full one-quarter of global GDP…

Out of the 25 largest growth-contributing cities, 21 are located in emerging markets, with a significant number of them in China. This represents a great leap from today’s status quo, in which only 4 of the 25 wealthiest cities are found in the developing world. Yet economic growth does not automatically mean consumption development—or luxury-market growth…Market growth in these cities is indeed conditioned by specific factors that differ from city to city. Variables such as birth rate, wealth distribution, and share of working women correspondingly affect growth in categories such as baby food, beauty products, luxury goods, and women’s fashion. To prioritize their efforts, companies will need to identify the biggest and fastest-growing cities with regard to their particular products and services..

Where Luxury Growth will come from? :

Using the McKinsey Global Institute’s Cityscope—which draws upon broad sets of economic and socio-demographic data for more than 2,600 cities around the world and combines these with deep market understanding to forecast growth at the level of individual cities—we have developed a unique road map for how luxury companies should understand and approach global-growth opportunities. Our LuxuryScope “city guide” of luxury markets organizes granular data and statistical forecasting across luxury categories. For example, several critical, market-level insights emerged from our analysis:

  • Growth is increasingly shifting toward emerging markets across all Luxury Categories

  • Luxury growth is highly concentrated in cities. The world’s top 600 cities will account for 85 percent of growth in the luxury-apparel market in 2025 versus 66 percent for luxury beauty products and only around 40 percent for consumer packaged goods. In fact, the more upscale and less “basic” products that consumers desire, the more growth will be concentrated in cities.
  • Mature cities remain critical given their absolute size
  • Growth is granular and varies by category, price point, and style. Driven by cultural fit with a brand’s value proposition and underlying growth factors by category and price point, the attractiveness of particular cities can differ significantly among luxury players. For instance, luxury women’s apparel is dominated by the traditional fashion capitals, such as Milan, New York, and Paris; spirits are strong in the Americas, while skin-care growth is concentrated in Asia. Mexico City, for instance, ranks 18th in fashion, 8th in spirits, and does not even appear in the top 20 for beauty…But within each of these categories, the attractiveness of any single brand will also vary depending upon its fit with local taste..
  • Emerging countries will drive growth, with China taking the lead.

This extreme growth concentration is great news for #LuxuryBrands and #Retailers…It will allow companies to more easily and completely focus their efforts on higher-growth areas. Analyses conducted on growth concentration by city reveal that extensive growth opportunities still exist in Europe and the United States, even in cities as large as London, Los Angeles, and Paris…The city approach to growth can also serve as a compass for companies seeking to navigate the vast sea of emerging markets, helping players to prioritize cities and focus their resources on targeted market-entry plans, whether in Belo Horizonte, Brazil, or Wuhan, China..

What Companies must do? :

Taking the city-by-city approach can help luxury companies revamp their growth strategies and gain new insights that can be used to adjust their business-development models, resource allocations, and organizational structures. How can these new business insights into potential on the city level be used to accelerate companies’ growth ?

The Right Plan:

It is well understood that having the right strategic plan is the essential starting point for any growth journey. Building this plan requires clear answers about where to go and when. Luxury-goods companies must identify growth opportunities at the city level, generating insights on where to concentrate resources to achieve the greatest impact. In addition, this approach also encourages the development of forward-looking market intelligence, a key enabler for ensuring that strategic decisions will allow companies to stay one step ahead of the competition. The city “attack plan” might look quite different from the traditional market-expansion road map. For instance, rather than discussing Asia or Europe as alternative locations—or even Spain versus France—decision makers may ask, “In what ten key cities should we establish a stronger presence? ”

Outstanding Execution to Achieve Impact:

When companies begin looking at fast-growing emerging-market cities, five key issues need to be tackled to help ensure success:

    1. Identifying the right go-to-market model for each location.
    2. Determining if there is a need for local-offer customization.
    3. Ensuring global customer service.
    4. Gauging a need for organizational changes in the longer term.
    5. Choosing how to deploy or redeploy resources.

The global paradigm shift driven by emerging-market cities is posing similar questions for Western companies for many different industries. For luxury players, cities probably matter more than for any other product category, and as retailers, most have the “luxury” of choosing, at a very granular level, where and when to open or expand a store…

In this context, Luxury Players are uniquely positioned to pioneer this new approach to accelerate their growth…!!

“Corporate Team-Building”: Exercises in “Workplace Collaboration” | by: Edward Iwata | Concordia

Team-building may be the most studied and elusive concept in the management and leadership field…Clearly it remains one of our most valuable practices. And it applies equally to companies and nonprofits, to small groups and large organizations..

#TeamWork, influences nearly all of us in our lives and careers…Think of the many scenarios that involve successful (or failed) team-building : Job-related projects and partnerships…College studies and internships…Volunteer church or school activities…Sports teams and performing arts groups..

As management consultant Patrick Lencioni writes in “The Five Dysfunctions of a Team”, #Team-building “remains the ultimate competitive advantage because it is so powerful and so rare.” If an organization and its people can work toward the same goal, it can whip any competition and rule any market or industry, according to Lencioni…

Teams have been around for centuries, since ancient humans hunted and farmed together. Team-building grew in complexity through the Industrial Age, mass manufacturing and the computer era. Globalization and competition among the United States, Japan and Germany raised team-building to an even higher level, according to Harvey Robbins and Michael Finley, co-authors of “The New Why Teams Don’t Work.”

For certain, all employees can use team-building skills, including the setting of tasks and goals, building trust and community, communicating well and tapping into diverse thinking and backgrounds.

Benefits of collaboration illustrate value of Team-Building:

Why do we rely on Teams so much ? For many reasons, according to Robbins and Finley :

  • Teams save money.
  • Teams increase productivity.
  • Teams improve communications.
  • Teams create better-quality goods and services.
  • Teams lead to improved processes.

Similarly, the best teams share concrete goals, develop trust, define their roles as team members and engage in clear communication and other team-building practices, say Charlene Solomon and Michael Schell of RW3, an online cultural training firm.

Team-building approach helps multiple industries:

Strong team-building can be found in every field and industry. In healthcare, for instance, hospitals are finding that well-run, interdisciplinary teams of healthcare professionals may reduce costs, improve the treatment of patients, shorten their average hospital stay and even reduce death rates, according to AMNHealthcare.com.

More hospitals — from Long Beach Memorial Hospital in Long Beach, Calif., to Unity Hospital in Rochester, N.Y. — are deploying teams of doctors, nurses, administrators, social workers, pharmacists and case workers who meet throughout the day to share information and assess patients.

At the Cleveland Clinic Center for Multidisciplinary Simulation in Cleveland, Ohio, doctors, nurses and administrative staff train as teams in the clinic’s simulation center. They study and review their performance in simulated medical situations, such as stroke or heart attack patients arriving in the emergency room.

In the nonprofit world, the Children’s Defense Fund in New York City became a leader in child health issues by using cooperation and team-building with government agencies, labor unions, churches, daycare centers and other partners, according to a report by Venture Philanthropy Partners and McKinsey & Company.

The fund quickly achieved its first goal: to increase the percentage of children receiving proper vaccines, as the percentage of vaccinated children in New York City rose from 52 percent in 1995 to 85 percent in 2001. Then the organization and its partners went further, persuading Congress to fund the multibillion-dollar Children’s Health Insurance Program for youth nationwide.

The team- and alliance-building strategies of the Children’s Defense Fund “allowed it to tap into the strengths of existing organizations without threatening them” and also “add value to the whole (child health) sector,” according to the McKinsey & Company report.

Global teams can outperform Local Teams:

In global business, well-run teams based around the world can significantly outperform and collaborate better than local teams, according to a study of 80 software development teams by Boston Consulting Group and business professors.

The study looked at 28 research facilities in the United States, China, Brazil, Denmark, France, Germany and other countries. The researchers found that virtual teams with strong task-related processes — mutual support, work coordination, open communication and full contributions from team members — performed more strongly than local teams.

“Managers have typically viewed dispersion as a liability rather than an opportunity,” the authors of the study point out. “But dispersion can provide substantial benefits if companies can take advantage of the diversity and varied expertise of team members at different locations. … Our research shows that virtual teams can outperform their (local) counterparts when they are set up and managed in the right way.”

What causes setbacks in Teams:

Team-building isn’t easy, of course. Unless it is encouraged and practiced widely by an organization, many employees will work only with their goals in mind, with little interest or incentive in broader teamwork throughout the workplace.

Even well-meaning teams suffer severe setbacks. In their study of 55 teams, London Business School professor Lynda Gratton and Tamara Erickson, president of the Concours Institute, found that collaboration and cooperation decreased when:

  • Teams grew larger, especially over 20 members.
  • Teams became more virtual and spread among many locations.
  • Team members had higher education levels and a greater proportion of experts with specialization.
  • Teams had a higher proportion of strangers and a greater diversity of backgrounds and experiences.

In studying successful teams, however, Gratton and Erickson found that team leaders and employees leaped past obstacles by focusing on key factors, such as:

Building and investing in “social relationships throughout the organization” :

At Royal Bank of Scotland, new corporate headquarters near Edinburgh featured an indoor atrium with shops, restaurants, biking and jogging trails, athletic facilities and green space for picnics and barbecues. The goal: to create more open communication, a free flow of ideas and a sense of community among employees.

Training in team-building skills:

It’s not enough to encourage employees to collaborate. They must be trained in the skills of collaboration, from conflict resolution to building personal trust. PricewaterhouseCoopers, for one, trains its employees worldwide in networking, coaching, communicating values, having difficult conversations and other team-building practices.

Using leaders who are task- and relationship-oriented:

The most successful teams have leaders who are skilled at setting tasks and goals, and at building relationships and a climate of trust and goodwill. In performance reviews at Marriott, managers are assessed by their growth in both types of skills.

Moving up to ” Team-Learning “:

After Team-Building 101, some leadership experts recommend Advanced Team-Building in “learning organizations.”

In his classic leadership manual “The Fifth Discipline Fieldbook,” management consultant Peter Senge calls it “team-learning,” which involves high-level dialogue and group dynamics that go beyond simple agreement to create real alignment, or new ways of thinking and working as a powerful and unified whole.

In short, team-building won’t vanish soon…And leaders and employees who use the best team-building techniques are sure to strengthen their teams, colleagues and companies…

“6 Viral-Marketing Lessons” to Learn From the “Ice-Bucket Challenge”| Entrepreneur

Social feeds from across the country are chock-full of videos and photos of Celebrities, Inventors, CEOs, Athletes and Politicians all taking part in the most recent viral sensation : “the Ice Bucket Challenge”…!!

Whether you’ve laughed at your friend’s reaction to the ice cold water or taken the challenge yourself, postings about it are everywhere. This initiative has achieved something that’s every marketer’s dream: going viral and capturing wide attention across the nation in a month or two..

How did this simple initiative turn into a movement that has scored participation from some of the biggest names in the country, including Bill Gates, Sheryl Sandberg, Mark Zuckerberg, Kobe Bryant, Oprah and New Jersey Gov. Chris Christie ??

The #IceBucketChallenge, benefits the ALS Association, which is dedicated to raising funds to research a cure for amyotrophic lateral sclerosis as well as caring for those with the disease. It gained steam with the participation of Beverly, Mass.-based Pete Frates, who since 2012 has had the illness (also called Lou Gehrig’s disease)...

6 Viral-Marketing Lessons to Learn From the Ice Bucket Challenge

#StartUps, established firms and marketers of all types can learn from the success of the Ice Bucket Challenge…Those trying to develop a viral campaign can take the following steps :

1. Identify the Goal OR Cause :

The goal of the Ice Bucket Challenge has been to spread awareness and raise funds for #ALSResearch, and its success has exceeded initial expectations. The objective is simple and clear and the challenge doesn’t require much effort from participants: going online to donate or pouring a bucket of ice water over the head, or both.

Today’s consumers like simplicity and direct messaging. They typically won’t take the time to read through an entire article, newsletter or web page to understand a message. Marketers, simplicity is your friend…

2. Make it Fun and Easy :

Few things are funnier than seeing people have ice poured all over them and watching them cringe, scream or freeze in place. The web has been flooded with comical videos and images of those who have accepted the challenge.

People like to laugh, so keep members of your audience entertained with a video or photo that they would enjoy viewing. Keeping things lighthearted lets people connect with an organization on a human level and can encourage further engagement in an authentic way…

3. Add Immediacy :

Those asked to take the ALS Ice Bucket Challenge have only 24 hours to do so…If you want an idea to flourish, keep the window of time brief to propel the process forward rapidly…By giving your audience a deadline, the initiative will become a greater priority.

4. Understand the power of Multiplication :

The ALS challenge calls on participants to encourage three additional people to participate, thus creating a multiplier effect…When possible, let consumers involved in an initiative have a chance to engage with their network so as to experience the joy of others joining in. The bonus for a marketer is bringing increased exposure to a company’s brand..

5. Share on Many Platforms :

News of the ALS Ice Bucket Challenge is being shared on many social-media platforms, including Facebook, Twitter, Instagram and YouTube…

If you’re hoping for an idea or campaign to go viral, make it easy for others to share updates across multiple platforms. Don’t give people a reason to not become involved..

6. Give Participants a Chance to feel Good :

Everyone loves to feel a little better about himself (or herself). The Ice Bucket Challenge raises funds for a medical cause, and no matter the size of a donation, participants can feel good because they’re helping others in need.

Plus, the challenge gives participants a sense of unity : They are sharing positive feelings and a goal with the rich and famous…!!

Setting up an initiative like this lets participants also allows for an emotional connection with an organization and opens up an opportunity for conversation…!! 

“Building a Luxury-Brand Image” in a Digital World | INSEAD

Luxury Managers often see #DigitalMedia, as a threat, worrying that mass appeal will take power away from the #Brand. But digital channels offer powerful connections with customers and closer integration with their ecosystems.

“Hermès has no desire to become “masstige” (a mass producer of prestige goods) said the company’s CEO Patrick Thomas in 2009, despite two-year waiting lists for its famous Birkin or Kelly handbags at the time. The luxury brand maintained that it did not want to dilute the brand image and compromise on quality in the interest of short-term profits…

Such a dilemma is par for the course in Luxury and is also applicable to the digital presence of the companies in the industry: How to maintain demand and a big customer base while remaining exclusive? This is all the more important as #DigitalChannels, “expose” brands regardless of whether they want to or not, through the hundreds of thousands of press articles, comments and pictures that are posted daily about #LuxuryBrands…If Brands do not embrace digital media, they risk being shut out of conversations about their products..

Hermès has resisted selling any of its “core”, highly sought-after collections online, and the company emphasises that its brand website is more of a channel for consumers to explore the world of Hermès, from its seasonal inspiration, to its heritage, art and museum collaborations and exhibitions. The same is seen on the company’s Facebook page…#Hermès, has also embraced the mobile app channel but only with their Silk Knots app that educates consumers on how to vary their scarf tying techniques.

Since digital attracts a much younger demographic not necessarily seen in physical stores yet, educating customers and other stakeholders about the brand’s DNA and what it seeks to represent is central to building the future generation of customers whose spending power will increase with age. Such approaches also entice them to the exclusivity of the store. To successfully engage people on digital channels while maintaining “distance” from the mass market, brands must answer two key questions: first, how to coordinate offline and online efforts to offer the best multichannel experience? And second, how to build an exclusive image online?

How to marry Bricks and Clicks ?

Luxury and fashion brands built their brand promise through a unique in-store environment and intimate personalised service that they can hardly transfer to the online world. So how should luxury brands marry bricks with clicks? Critics within the industry are often opposed to bringing clicks to bricks, arguing that the former endangers the later by cannibalising sales and potentially threatening the brand image by making the brand more accessible through online channels and social media.

While these dangers exist, deserting digital media would be even more problematic and would leave room for rivals to build awareness and competition, and prevent the brand from actively engaging with customers and responding to critics. In fact, brands that have been very successful so far have focused on maximising the synergies and complementarities with physical stores..

For instance, multi label boutiques like Lane Crawford and Neiman Marcus that have long started their #E-commerce sites, do encourage and enable customers to pick up their e-purchases in store, or visit a store for exchanges or refunds. It is a way to drive double footfall and traffic both online and offline. The key differentiating factor of luxury brands is and will remain the store experience and customer service, hence many luxury brands feel that a consumer needs to ultimately walk into a store to experience this, in order to gain “true” customer loyalty in the long-term. In sum, digital engagement should be seen as a way to leverage an additional consumer touch point, rather than jeopardising existing sales.

Second, inherent to the notion of luxury is that it supposes to create a distance between the brand and its customers  to create the dream…But this is in direct contradiction to the notion that social media and digital channels connect people with one another and lower the barriers to entry.

How to build a Prestigious Image?

The power of image relates to how a brand can increase its brand awareness and value by embracing and leveraging different digital channels to reach consumers.  It is further complicated when different consumer groups choose different digital channels.  Between Facebook, Twitter, Instagram and blogs, certain brands have compartmentalised their reach differently. This gives consumers the choice of which platform to be engaged with depending on which resonates most strongly with their lifestyle and desires, and also gives the opportunity for brands to intelligently use browsing data in order to more effectively target specific demographics.

The Burberry Facebook page for example, is very product driven, and lists many smaller accessory pick up items like wallets, clutches, sunglasses, versus their higher end exotic lines. It also features more of the brand’s music influences, which is not seen on its Twitter and Instagram accounts. The company’s Instagram account is much more “backstage” driven, with scenes of London; behind the scenes photo shoots; and live pictures from runway shows. This appeals to the slightly more visual and artistic customer who craves instant gratification from staying updated and plugged in real-time. The Mulberry blog, or journal is much more lifestyle-driven, and posts much less product, but more on styling influences, travel stories, events and even food recipes.

By giving people the opportunity to give their own representation of brands online, the Digital Revolution has led to much more fragmented, bottom-up, multifaceted #BrandBuilding…In turn, this requires that #LuxuryCompanies step up and strategically engage in image building with #Customers, and use digital platforms as a springboard for engagement and sales…