Managing and Delivering Customer Value at Milliner India for Creating High Performing Organization The accelerating pace of change, new technologies, customer demands, e-commerce, workforce demographics, business model challenges, fierce competition, shareholder expectations, margin pressures, shrinking cycle times, shifting work ethics, and the like are pulling organizations in many directions. In today's economic scenario organizations need the bonding glue of a strong culture to hold everything and everyone together to make the organization high performing.
In any discussion of high performance, whether it is in Olympic winning events, in examination results, or in the financial or service performance of an organization, high performance is defined in relation to a pre-determined set of expectations or in contrast with the achievements of others. Organizational high performance may similarly be assessed by comparing the achievement of several organizations in specific measurable areas (e. G. Reduction output, number of clients seen, percentage increase in profit), or by assessing the performance of the whole organization against a pre-determined set of expectations. The diverse criteria that ay be used to create high performance organization, needs to identify guiding philosophical precepts as well as organizational effectiveness indicators, characteristics, goals to asses performance. Areas to be considered include internal structures, technical, human, communication and resounding systems, as well as interactions with the wider environment.
To make it more simpler the level of competition today requires high levels and continuous improvement of organizational performance in four critical areas: The quality of goods and services, the cost of producing goods and services, the speed with which products and revise are brought to market, innovation in the development of new products and services. A high performance organization is like the boat whose rowers who are in synchronization with each other. It goes farther and faster in the desired direction because the rowers coordinate their movements to reach a common goal.
The key to high performance is the ability to make the best use of the organization's most valuable resource in order to deliver sustainable results. High performance will be attributed to organizations which exhibit characteristics such as the ability to interpret the business environment, the ability to foresee and act upon new business opportunities, the flexibility necessary to maintain 'core values' while adjusting output to meet new market demands or conditions, and the willingness to implement employee remuneration strategies such as stock ownership schemes which increase productivity and financial returns to the organization.
Important strategies for creating high performance organization vary from organization to organization. An organization can adopt combination of strategies like; deploy a high performance dervish strategy, common purpose and vision toward the future, provide direction engages the workforce, talent management, comfortable with creating change, tear down walls and barriers, manage ideas and innovation, manage performance and measure productivity Over the past several years we have reviewed considerable amount of research on what it takes for organization to achieve high performance.
There are numerous studies on this topic including Jim Collins books on "Build to Last" and "Good to Great". The competitive and liberal economic realities limit the success of those companies hat are not focusing on creating customer value. Only those companies which continuously monitor and meet changing customer needs, streamline process, cut costs and restructure for quicker response to customers are capable of creating perceptible customer value. The customer value referred to here is the relationship between what is paid for and what is received and how it is perceived by the customer.
The customer value can be quite difficult to determine as it depends on how much the particular product or service is needed by the customer. The ingredients of customer value are price, service quality, image, and product mage. There is no single template for creating customer value as no two businesses are the same. To fare on well in the highly dynamic market fronts today, the entrepreneur needs to tailor his goods and services such that they are personalized and customized. The entrepreneur is required to identify the needs of the customer and strive to satisfy them.
By so doing, the entrepreneur will create customer value, a desired ingredient in business today. Customer value creation, thus, is vital for the success of business enterprises. Customer value will retain the existing customer (loyalty) while at the same time entice new customers through offering value propositions. Satisfied customers will always come back. This will translate to more revenue to the business enterprise and eventual success. Customer value gives the company competitive advantage over its competitors.
Creating customer value will reposition your business to succeed. Creating customer value proposal strategy is more effective than simply competing on price alone. Creating customer value will undoubtedly set your business aside from your competitors enabling you greater visibility and competitiveness within your niche. We all have frequently heard or read corporations claim that "they want to be close to their customer", "be market driven", "delight not satisfy their customer", "exceed customer expectations".
Creating the systems in the organization that deliver customer value are excellent investments for the long term and are more appreciated by the consumer hence greater long term returns on investment for business owners, higher returns for the shareholder. Research and experience shows that the shape and characteristics of high performing organization structures have a number of common features, it depends on the organization's Context and Focus (vision, values, and purpose), goals and priorities, skill and experience levels, high performing are unique to every organization.
The focus of this paper is identifying strategies adopted by Milliner to creating customer value. Milliner started to embed the sustainability agenda for all the brands by using a process called Brand Imprint. It is a rigorous, diagnostic process that analyses the social and economic value, as well as the negative impacts of a brand. This process has been carried out across all our key categories. Social and environmental considerations are now integrated with innovation plans for all major brands.
The organization believes we can make a difference - through the brands and behavior change campaigns in the space of nutrition and hygiene, and by providing consumers, from all income groups, access too better life. Developing Products For Customer Needs: In India every year, diarrhea and acute stomach infections claim the lives of millions of children. Studies show that most people know they wash their hands with soap after using the lavatory. Yet they have not translated this knowledge into a habit.
The government and health agencies are grappling with this issue. Milliner has taken initiative to develop effective communication to bring about a change in consumer behavior through making consumer understand the requirement to maintain hygiene. One of oldest brand Lifebuoy, exemplifies our commitment to provide health through hygiene for everyone. A major source of disease like stomach infection in a developing country like India is unsafe drinking water. In fact, 80% of all diseases are water-borne, and this problem is most acute amongst the poor.
Milliner has Purest water purifier provides water 'as safe as boiled' without the need of electricity or pressurized tap water. Purest eliminates waterborne germs that cause diseases, and is a more sustainable and affordable alternative to safe drinking water than boiled or bottled water. Another major problem in India is shortage of water in many urban and rural areas. In such places washing clothes by hand is a big problem because typically people keep rinsing till all the lather has gone. Milliner has improve Surf Excel so less rinsing is needed.
Adding Customer Value Through Advertising: Advertising is the missing link between brand attribute the customer perception. Between product feature and need fulfillment, between benefits and value. Even if he product and the service are designed to meet customer wants the organization has to inform the customer about the unmatched value delivered by this product / service. In today's information age the task of advertising is to develop and communicate the association that make for a richer, warmer and more exciting brand usage experience.
There are so many advertisements of the products which have successfully welded the experience with the brand so strongly that the entire value perception of the customer has changed. Every one still remembers advertisement series of Catbird "the real taste of India", "Such keas Hahn such bathmat" or "such teeth ho Jag". Even the series of Surf Excel "dig cheeky Hahn" has been able to translate greater value of the product beyond attributes. There is no denial that Milliner is committed to responsible marketing and have clearly defined principles which guide their communications.
Advertising is a way to engage with consumers on issues that matter to them. At the same time, Milliner recognize the influence of meaner ensuring that all the claims Milliner makes have a sound scientific basis and that all such communication passes the baseline test of being 'legal, decent and honest'. The food and beverage marketing principles contain additional clauses for marketing food and beverage products directed at children. They require that our marketing practices: - do not convey misleading messages - do not undermine parental influence.
Our advertisements always show parent's as gatekeepers to the product being consumed - do not encourage pester power - do not suggest time or price pressure - do not encourage unhealthy dietary habits - do not blur the boundary between promotion and content HULL has decided that it will not advertise food and beverage products to children ender 12 years Customer Value Creation Through New Concept: New products have often changed market scenario, reshaped customer expectations, restructure competitive ideologies.
Water purifier, fire extinguisher, mosquito repellent, moisturizer, washing machine, epilate are few of those examples which have changed total living style. Milliner has invented many new concepts to help consumer solve their problems. In winter every one appeared oily and sticky because without moisture skin cells become stiff and inflexible. Moisturizer help to replenish dry skin. Milliner has developed a Moisturizer with special ingredients which offers saturation unprecedented in mainstream skincare same way. India being a tropical country has hot climate most of the year as a result we smell after three four hour of bath.
Milliner scientists have developed a new anti-perspiring - Rezone Actresses - whose special micro-capsules of dour protection are activated when the body responds to stressful situations. Rezone Actresses continues to reduce dour up to 24 hours, making the consumer feel fresh throughout the day. Milliner has developed Bouillon cubes which are used around the world to add the base flavor to dishes such as sauces, soups and stews. Milliner chefs and product developers worked closely together to cook and stabilize, in a natural way, rich bouillons with big and fresh pieces of vegetables and herbs.
Knower Stock Pot is easy to use and melts naturally into food, developing a great aroma and taste, while keeping the salt dosage in the end dish flexible. Milliner has found a way to make ice cream healthier as well as really tasty. The new ingredient is called 'ice structuring protein'. This protein allows us to make ice cream and ice leslies which are lower in fat, sugar and calories and at the same time include more fruit. To cater o the needs of the growing number of health conscious people who will not compromise on great taste, Quality Wall's launched a select range of fruit flavors.
Each standard scoop (80 ml) has less than 99 Kcal. Customer Value Chain The need of the hour is that every organization should add value to product and services on every stage of marketing. Companies can gain competitive advantage by disaggregating their entire business from procurement, manufacturing, to delivering after sales services into a sequence of strategically relevant steps. An organization which religiously adds value on each stage of its chain will definitely derive erroneous competitive advantage.
Understanding customer needs and build the brand and other marketing activities around this need are crucial for success. Tooth Health Organization has identified oral health as a neglected area of general health. In developing countries, like India, there is low awareness of the importance of oral hygiene. Encouraging people to brush regularly remains one of the main objectives for organization like Milliner. The has made the consumer understand the benefits of brushing teeth twice a day, with fluoride toothpaste, can reduce tooth decay by up o 50% in children, compared to only brushing once.
This is a clear opportunity for business growth as well as improving oral hygiene in society. The main thrust is on changing everyday habits of Indians. Close up and Posted leading toothpaste brands in India, have made the difference. Milliner conducts oral hygiene programmed in schools to educate kids about the 'right brushing, night brushing' practice. In the laundry category, Milliner has created a new business model for Wheel detergent powder that delivers superior value to low-income consumers by driving efficiencies at every stage of the value chain.
The company has developed a new product formulation, low-cost manufacturing process, wide distribution network, and a different approach to pricing. Today, Wheel is the largest selling detergent brand in the country, reaching more than 120 million households. Shasta initiative is a micro- enterprise programmer that creates opportunities for the rural population to sell our products door-to-door in their areas. Through this initiative, the company expects to make products more accessible to low income consumers and reduce the menace of locally sold spurious products.
Delivering Value Through Mass Customizing Everyone is looks conscious, and wants to look beautiful. Milliner has recently launched a new Sunlit Silky Straight and Smoothing range especially for those customers who are looking for a smooth, sleek and straight look. The company focused on research to study why and what is needed. From extensive research on hair fibers company found that the roots and tips of our hair have different surface chemistries that, ideally, require slightly different treatment - not an easy thing to do standing under the shower in a hurry to get to work.
Milliner developed a new technology that - within one shampoo a functional polymer, possessing one main that attaches to droplets of conditioning active and a second domain that seeks out weathered or damaged hair, is used. Conditioning droplets, covered by these polymers, deposit preferentially where conditioning is needed - typically the tips - smoothing kinks and frizz and helping to naturally weight your hair to look silky straight. As one enters in forties and fifties, skin in general becomes drier, less elastic and more uneven in tone.
Fine wrinkles may be followed by deeper lines, especially around the mouth and eyes. Underlying muscle becomes less firm causing changes in the shape of your face and body. Whatever is your age, you have a right to look stunning. Don't bother about your skin, but do pamper it to protect it on the outside, use a rich, protective moisturizer with sunscreen during the day and nutrient-rich cream at night. Milliner has wide range of products to offer in brands like Dove, ever by offering Surf Excel, with the very clear value creation "Dig Caches Hahn".
For children, getting messy is a natural part of learning, having fun and enjoying everything life throws at them. Whether they're riding their bikes through muddy puddles, climbing a tree or creating a work of art with finger paints, our little ones are evolving important skills and finding out more about the world around them. And let's face it, dirt is fun too! After all, it's not much of a football match without a few grass stains or mud splatters. Life is full of fun even when puppy spoils clothes of someone. Milliner has since ages provided products to keep consumers health intact tantrums ski rakish".
The desire to be clean, active, energetic and healthy is common to every person, whether young or old, whether rich or poor. To billions in the developing world, health is simply the absence of illness. For all of us, health is he ability to go to work, to provide a square meal for our families. For our children, health is the ability to play, to go to school, to work towards a better future. For the affluent, health is more than Just physical well being. For all categories of consumers the signs of good health is synonym to being active, energetic, feeling good, looking good.
Milliner offers verity of product for personal care, oral care, house care by the name Lifebuoy, Posted, Domed, CIFS. The company has always developed products which allow them to get the most out of life. Customer Delight The product is essentially created by a bundle of benefits that comprises the core - the key elements in a product or service; the ring of expectation - what customers expect; and the ring of enhancement or augmentation - what companies add to a product or service to surpass customer expectations.
As both the core and support elements are the classic sources of customer delight. By delivering product and services ahead of time add value to both the customer and company. Milliner address issues related to hygiene and nutrition through product innovations and awareness. Gathering information about the concerns expressed by consumers, immunities, and stakeholders can help us identify opportunities for innovation at the category, brand, and marketing plan level. We have a very strong and trusted position in India and we can leverage this to our competitive advantage.
Today's consumers are constantly bombarded with a mountain of information thus Milliner believes in transparent communication with consumers - providing the right information at the right time and place, so they know exactly what impact their choices have on themselves and our planet. Today, India is battling multiple issues like water scarcity, poverty, and problems rising out of low awareness of health, hygiene, and nutrition. If these issues are not addressed soon, they will create insurmountable barriers to business growth.
We believe that helping society prosper and ensuring a sustainable future for the planet goes hand in hand with our goal of ensuring growth that is competitive, profitable, and sustainable for our organization. Our contributions have to be substantial and sustainable. For example, if one household uses Surf Excel detergent, it can conserve two buckets of water per wash. A million Indian households using Surf Excel can save enough water for meeting the basic hygiene needs of many Indians. Thus, small in combating the issues society faces.
Milliner cares about the safety of its products, both for people and the environment, and believes manufacturers have a duty to communicate to consumers the benefits and risks of their products. The company wants consumer to feel confident that when they choose any Milliner product, such as house hygiene brands CIFS and Domestic, that they are safe and effective to use. In addition, it is the company's objective to always ensure that materials are derived consistently with our sustainability and CAR commitments. The new ingredient is called 'ice structuring protein'.
This protein allows us to make ice cream and ice leslies which are lower in fat, sugar and calories and at the same time include more fruit. We can also now make ice creams and ice leslies which better hold their shape and are less messy to eat. Combining ISP with stabilizer technology allows us to make products that additionally don't melt so easily - great for small children and for hot countries. Maintaining Chain Leadership All the activities from identifying customer needs to managing customer delight are important ingredients of creating customer value.
Thanks to an overwhelming proliferation of brands need to manage and service their business adroitly has never been more acute. The basic strategy to deliver the right product at right time, at right place without building inventory at any point of procurement and distribution The essence of chain leadership is that supplier reduces the total cost of the customer. Lever is working closely with key tea producers in North and South India and Rainforest's Alliance (RA), an international certification body in the area of sustainable agriculture.
Nine tea estates in the Inklings (Tamil Undue), and ten tea estates in Assam were certified 'Sustainable Estates' by RA in 2008 and 2009. This certification is currently sought for 52 other tea estates in Assam and Adrenaline. Milliner's goal is to source 100% of tea requirements for Lipton teabags from certified sustainable sources by 2015. The company has started developing Indian producers for the tomato paste we make. It is working closely with key producers and additional initiatives include water conservation, use of authorized pesticides, land conservation, and improvement of farmer income.
Commercial production has already commenced. Milliner developed the generic Good Agricultural Practice Guidelines (now known as the Milliner Sustainable Agriculture Code) for growers of key crops, which cover 11 indicators, including water, energy, pesticide use, biodiversity, social capital and animal welfare. In 2002, the company started using these guidelines for five crops. We work closely with our contract growers and third- party suppliers to implement these guidelines. Milliner's long-term aim is to buy all our key agricultural raw materials from sustainable sources, so that' . Farmers and farm workers can obtain an income they can live on and improve their living conditions - Soil fertility is maintained and improved diversity are protected and enhanced. Our success has been the greatest where we have the most influence - on our own farms and with growers for whom we are the primary customer. Adding Value Through Sales Each company is trying to reach new and innovative ways to reach the consumer. Milliner ice-cream business uses deep freezers in retail and vending operations for storage of product at the point of sale.
Since 2007, Quality Wall's has moved into procuring technologically advanced Hydrocarbon (HCI) refrigerant-based freezers for its retail operations, instead of the hydrocephalus's (HOFF) refrigerant based erasers. The company is trying to develop freezers with HCI technology for use in vending operations. These freezers have brought about a significant reduction in our carbon footprint and will result in approximately 9% savings in power consumption as well. Packaging protects products right from the transportation stage till its purchase by a consumer.
Milliner take a lifestyle approach to managing the environmental impact of our packaging, therefore company ensure that the most suitable and sustainable packaging material is used. To sustainable packaging approach adopted by the many involves; considering the whole product, not Just the packaging, adopting leading-edge design techniques and choosing materials to minimize impact, working with others, through advocacy and partnerships, to strengthen the recycling and recovery infrastructure. This approach is dictated by five principles - remove, reduce, reuse, renew and recycle.
The environmental impact of different materials varies significantly, so we consider the impact of the packaging at each stage of the product's lifestyle. In recent years another product to reduce use of electricity is Purest water purifier. The ensures that that water is as safe as boiled water. Purest filtered water meets the stringent criteria of the Environmental Protection Agency (USA). Consumers, who use Purest to get safe drinking water, do so without consuming electricity, thus conserving energy. The R&D department has reduced water consumption significantly by controlling water usage while rinsing clothes through Surf Excel.
Cost leadership A large part of the population in India has limited resources. We continue to seek new ways of bringing our products within the reach of everyone. However, making affordable products in an economically viable way is a challenge. Our aim is to satisfy the needs and aspirations of consumers at all income levels with quality products. Whether it is through innovative distribution channels, using smaller formats, or creating new products, we are developing business models to reach the low-income consumer as well.
Brooke Bond Statesman addresses the health needs of the low- income group of consumers through their daily intake of tea. It is a unique innovation that allows us to use tea as a carrier for micro-nutrients. In the laundry category, we created a new business model for Wheel detergent powder that delivers superior alee to low-income consumers by driving efficiencies at every stage of the value chain. We developed a new product formulation, low-cost manufacturing process, wide distribution network, and a different approach to pricing.
Today, Wheel is the largest selling detergent brand in the country, reaching more than 120 million opportunities for the rural population to sell our products door-to-door in their areas. Through this initiative, we expect to make our products more accessible to low income consumers and reduce the menace of locally sold spurious products. Creating customer value will reposition any business to succeed. Customer value creation, thus, is vital for the success of business enterprises. Systems that deliver business owners.