When Genuine Logitech Dealers (GLDs) landed in Zurich towards the end of
September, it was a pleasant change for them all. From the hot and humid hustle
and bustle of the Indian marketplace, Rashi had brought them to a cool and green
country surrounded by snow and meadows. From Zurich, the GLDs had a 90-minute
pleasant bus ride to Engelberg, where they were put up, a township overlooking
Mount Titlis. Said Ketan Gala of Mumbai-based Spectrum, "We knew we were in
for a good time in the Alpine country, after slogging it out to push the sales
of Logitech cordless products for five months at a stretch."
Steven |
Rashi’s philosophy of keeping business to the minimum and rewarding its
partners with a relaxed time-out at exotic places, which was appreciated at last
year’s cruise covering Singapore, Thailand and Indonesia, was evident again
during this trip to the Alps as well. Business was limited to just three hours
on the last day while rest of the time was dedicated to relaxation and
entertainment.
Premium GLDs
Suresh Pansari, director of RP Tech, welcomed partners to Switzerland and
congratulated them for their brand loyalty to Logitech products. He wished that
their commitment to Logitech would grow further, now that they had been upgraded
to the ‘Premium’ level. For the 1,000 GLDs spread across the country, it was
not an easy task to qualify for the Swiss trip and be upgraded as ‘Premium’
GLDs. The targets were stiff and only 30 qualified to reach the ‘Premium’
level.
Sanjeev Shah (right), national sales manager, Logitech, presents the premium CLD certificate to Ketan and Shefali Gala of Spectrum |
Commending the efforts of the GLDs to reach the ‘Premium’ level, Steven
Ngoh, Director, South Asia, Logitech, said that Switzerland was the country of
origin for his company and it was fitting that the GLDs were certified as ‘Premium’
in the land where Logitech was founded.
Presenting the Logitech product roadmap, Steven said Logitech was looking at
living room consoles, ‘on the go’ personal interface products, digital pen
and paper, mobile phone accessories, notebooks and PDAs. This wide range of
products, he said, was a far cry for Logitech that was known only as a mouse
company until recently.
Expanding product line
Currently, little over half of Logitech’s business comes from mice at 54%.
Desktops (a set of cordless mice and keyboards) contribute 16% and keyboards
15%. Products in the video and audio segments are fast catching up with 7.5 %
and 4.5% revenues respectively. Interactive gaming devices make up with 3%
revenues.
"India grew by 41% for us in the Asia Pac region during 2001-02,"
said Steven, "which is comparable to the growth given by other countries
including Taiwan and Korea." However, India lagged far behind China, where
Logitech grew by 140%. According to Steven, these figures show the unexplored
potential of the Indian market. He asserted that India had the capacity to
overtake the growth of Logitech in the Chinese market.
Suresh Pansari, director of KP Tech, is working toward building brand loyalty for Logitech |
Pointing devices
Sanjiv Shah, national sales manager for Logitech, pointed out that it was
Logitech that had pioneered selling of premium pointing devices in the Indian
market. Other vendors were now pursuing this trend. "The competition has
become tough with cheap products flooding the market," said he.
Presenting Logitech’s India strategy, Shah said his company would continue
to focus on cordless and corded desktops. Logitech will also increasingly
promote notebook gadgets in the country. Sanjiv said that Logitech offered
trouble-free sales for partners since its products hardly broke down minimizing
warranty-related problems. He assured Premium GLDs that Logitech would continue
to launch products as per the market demand for stable business.
Rashi’s marketing strategy
Presenting Rashi’s marketing strategy, Rajesh Goenka, Divisional Head,
said that the Logitech-Sony roadshows in 32 cities in the last six months had
brought about greater awareness for Logitech products. The "Fortune Maker
Scheme" had attracted 900 partners who had sold the entire range of
products distributed by Rashi.
LET’S GET |
Rajesh wanted Rashi partners to explore the upgradation and replacement
markets. He pointed out that Rashi had taken some innovative measures like
displaying products at multiplexes and running mobile vans with product displays
to spread awareness of products that it was distributing. He assured that Rashi
and Logitech would support every SI meet organized by Premium GLDs. Shefali Gala
of Mumbai-based Spectrum said, "We don’t sell Logitech, Logitech sells by
itself." But this did not mean that dealers got attractive margins. She
wanted Logitech to provide healthy dealer margins. She had a word of praise for
Rashi, which according to her, had played a key role in establishing the
Logitech brand across the country. She cautioned Premium GLDs to be alert on
those brands, which were entering the market through the bundling route but were
short on after-sales service.
Rashi interactive
Rashi unveiled ‘Rashi Interactive’ a quarterly magazine meant for its
partners. Guwahati-based Vikash Bucha of Info-Tech India was pleased with the
publication as it offered a comprehensive catalogue of all the products
distributed by Rashi in the country. Said he, "The publication would be a
boon to Rashi partners because it offers all product specifications at a glance.
This tool will help us sell products distributed by Rashi better."
Pondicherry-based Suresh Kummar Soni of UR Enterprises was all praise for
Rashi for organizing the Swiss trip. "Logitech
has very little competition in Pondicherry. So, getting qualified for the trip
was not very difficult," he pointed out. The Swiss trip of Premium GLDs,
marks another milestone in Rashi’s marketing strategy: Keep partners
entertained to retain brand loyalty. When almost every distributor was trying to
save costs last year, Rashi did not think twice in taking its partners for a joy
ride on Star cruise.
And now, even when the demand is yet to catch up, Rashi’s reward of a trip
to the Alps to its Premium GLDs, is sure to etch the Rashi-Logitech brand in the
psyche of all its partners.
Sylvester Lobo in Engelberg,
Switzerland