LOCAL MEMOIRS OF A GLOBAL MANAGER

BY GURUCHARAN DAS

Local Memoirs Of A Global Manager

Gurcharan Das

AUTOBIOGRAPHY

Guru CharanDas His birth His entry into Vicks vapor rub company Think global and act local “Love to the nation”

One – Pointed Success

Richardson Vicks Indian headquarters, which turned out to be a rented hole-in-the-wall with a dozen employees.

Focused on making Vicks a household name in India.

The company focused on one thing i.e., creating, retaining and satisfying consumers.

Concentrating on one’s core competence thus was one of the first lessons he learned.

He believed that tomorrow's big companies will mainly indulge with small decentralized units to focus on particular markets and customers.

AD PLAY

How Gurcharan Das got the idea to advertise Vicks.

On Taking Ancient Medicine Problem --- Chemist and Pharmacists . --- Production decreased, Wages increased. --- Profit fell to 2% of Sales.

Solution --- Realized Vicks Products were all Natural, Herbal Formulas. --- Changed the Govt registration from Western Medicine to Indian Medicine. --- Delhi Govt were impressed about the element in the product and gave the new registration.

Result --- Built New Plant near Hyderabad. --- After tax profits rose from 2% to 12% of sales. --- R&D Centre was established.

Turning Point

Of Chairs, Armchairs and Monsoons

priceprice promotionpromotion

placeplace

productproduct

PLACE

Geographical Segmentation

North – South Listen to and respect the market. “Better to build on your strength than try to

and correct weakness”.

PRODUCT

The company as positioned the product as in the consumer mind as

“ COLD RELIEF BALM". Its unique function was to relieve colds.

Vicks Vaporub (natural cough liquid) Vicks Hot sip (cold & cough)

PRICE

Another factor for success was introduction of cheaper prices –

5 gm – 10cents (40% volume) The tins were positioned for Working Class –

targeted at middle class for they would stay loyal.

PROMOTIONS

Cinema Commercial

Company

Retailers

Distributors

Local Distributors (traditional way)

Of Local Passions and Golden Ghettos What is the universal idea behind Vicks Vaporub’s

success in India?

What is it that made it sell?

Was it “ rubbing it on the child with tender, loving care”?

Could that idea be revived in the United States?

Managers must plunge into their communities and make them their own.

ON GLOBAL THINKING Advantages of being global.

Local experience learning can be used anywhere.

Local insights of manager with open-mindedness are clear, understandable and sensitive.

“not invented here” syndrome.

Any advertising idea can be implemented anywhere globally.

Smart global manager nourish each blade of grass without neglecting the garden as a whole.

Lessons learned Think globally--act locally AND think locally--apply knowledge

globally.

Have a global vision & strategy but also cultivate roots and individual identities.

Key to success is local passion for a brand and feeling of local pride & ownership.

Focus on one thing: create, retain, satisfy customers.

Never forget that it is not the company but the customer who makes money.

Build on your strength rather than try and correct a weakness.

Never mix up functions in an organization.

Never become complacent--instead grow the market, and tap pluralism/diversity of local roots.

Do not reinvent the wheel but rely on existing distribution/sales system.

Local passions are important.

Avoid managerial isolation/rootless ness.

Nourish each blade of grass without neglecting the garden as a whole.

Make consumers responsible, innovative, self-reliant.

Act for the sake of action, not for the reward.

Use the optimism of developing countries.

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