Thursday, May 13, 2010

CAPTIVE CONSUMERS

Reservations and Regionalism

Many Indians have deep ‘reservations’ about this marketing technique used so effectively – and often so brazenly – by political parties to increase their market (vote) share. But in the last two decades, after former Prime Minister, V. P. Singh unleashed the Mandal genie on India, reservations have become the passport to success and power for dozens of political parties and personalities. Can you imagine Lalu Prasad Yadav, Nitish Kumar, Mayawati, Ram Vilas Paswan, Mulayam Singh Yadav and lesser known names like Kishori Lal Meena, Ambumani Ramadoss and Ramdas Athavale without the issue of reservations becoming and remaining a sizzling hot political button and a strategic weapon in the quest for votes? In marketing parlance, you can say that the more resonant the issue of reservations, the more fragmented the market becomes. And fragmented markets often lead to regional and local brands flourishing at the expense of national ones. So Ambumani Ramadoss has zero salience when it comes to the national market for votes, but there is that community (caste) of his in Tamil Nadu that makes him larger than life. Ditto Mayawati who is still trying hard to transform her Uttar Pradesh centric Dalit identity into a national brand (and perhaps even succeeding partially). And don’t even dream of writing off reservations as a hot issue. Wait for the demand for reservations in private sector jobs to reach a crescendo. That is when the fireworks will start get interesting!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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