Shakun Mulchandani, chairperson of Baron International which created waves for an aggressive marketing of Akai televisions, has always been more of a designer than a hard core marketing wizard. Starting Baron from a modest Rs 3.5 crore in 1993 from the surpluses generated out of designing clothes working with Oscar de La Renta, Louis Feraud and Guy La Roche, Mulchandani has been drawn into the business and is now actively heading the company which closed its turnover at Rs 870 crore last year. She spent time talking to NAVIKA KUMAR about her plans for the company's future. Excerpts: In an already overcrowded marketplace of consumer durables, how does Baron plan to make a niche for competitive brands like Aiwa and now Hitachi, which amongst themselves are competitive?Baron International has the unique distinction of working with several international partners where product offerings are sometimes of a competitive nature. Our main strength lies in strategically positioning theseproducts and carefully pricing them, catering them to market segments for which they are meant. In fact, we carefully plan menus for specific consumer categories with our dealers so that there is no overlap between products in different categories. For example, Aiwa's strength is in audio systems and smaller TVs in the less than 21 inch range while Hitachi's strength is in the large-screen TV segment.Having multiple brands actually works to our and consumers' advantage. It lowers the costs of operation, generates greater power in our advertising which actually stimulates consumer interest and translates itself into higher number of visits to dealer showrooms. Our comprehensive range of products gives consumers the choice that they are looking for. How is your Hitachi tie-up different from the earlier arrangements with Aiwa and Akai?The Hitachi strategic alliance is born out of our strengths to perform in the marketplace. Our tie-up with Hitachi is for the premium segment of the marketwhich is complementary to our tie-up with Aiwa. Even while catering to the premium segment, we will try to give ``value for money'' to our consumers which is what our company has come to be associated with. While we have begun with a limited product range under the Hitachi brand this month, we plan to expand our product offerings in a phased manner in the months to come. What are your growth targets and how do you plan to achieve them at a time when demand in the white goods market seems to have plateaued off?The consumer electronics market, especially the colour TV segment, has been growing at 25 to 30 per cent annually. Baron has two major advantages vis-a-vis our competitors - low costs of operations and innovative marketing. While we respect our competition, we are focussed on growth through these inherent strengths. For example our 3,000-strong dealer network supported by 25 Baron offices in state capitals and metros and 67 fully-equipped service centres.We have expanded our marketshare in the CTV segment from three per cent in 1995 to around 20 per cent now. We aim to achieve 25 per cent share of the colour TV market and 50 per cent of the mini/midi audio systems market in the near future. Recently Baron was involved in a controversy regarding excise and customs claims on the company. Comment.Baron has registered a phenomenal growth in the last five years which has led to the company becoming the envy of some market leaders. It is our fast paced growth coupled with high exposure of our brands that we have attracted attention and curiosity of customers, competitors and now the Department of Revenue. We do understand that these allegations need to be addressed by us responsibly. We are currently engaged in a dialogue with the Department of Revenue and expect the matter to be settled over the next few weeks in a transparent manner. How do you plan to make a splash during the forthcoming Cricket World Cup next month?We have announced a major marketingbonanza just in time for the World Cup. Every buyer of Aiwa during April and the World Cup days, will be entitled to an award of Rs 6,000 each if the Indian team wins the World Cup. If the Indian team wins the semi-final, all buyers will get a cash reward of Rs 4,000 each and Rs 2,000 if the team wins the quarter final. Not only this, every member of the Indian cricket team will stand to win Mercedes Benz E-220 if they return home with the World Cup. This scheme has been launched to motivate the Indian contingent in our own way. Do you think your company has an image of being a family-run business which might make multinationals nervous in associating themselves with you and eventually leading to a split, as in the case of Akai?Almost all big Indian business houses are either family-run or have majority family share-holdings. The situation was not very different in the West and the Far-East till about a decade ago. However, though Baron is a closely held company, we have professionalsmanagers who run the day-to-day business. This has never stood in our way in our dealings with our overseas partners. However, we are taking steps to improve our professionalism. Apart from inducting senior-level professional managers, we are planning to enlarge our board of directors to make it more focussed and professional to deal with the growing needs of the company.
