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Mafatlal Industries
– the decline of a major and very respected
industrial group which at one time ranked as the third largest
business group in the country.
To illustrate the
importance of market research in PR and PR strategies today, I would
like to cite a case of the PR program of Mafatlal Industries
Limited, Mumbai, in which I was deeply involved during my tenure
with the company.
Mafatlal is one of the large corporate houses in India. In the early
70s it was amongst the large business houses in the country.
Thereafter with a split in the family it did not figure in such
rankings. However, Mafatlal continued to be a leading textiles
company with NOCIL, petrochemicals major (in a JV with Shell) as one
of its flagship companies.
Whenever one mentions textiles, Mafatlal name crops up on the top of
the list. Plus the name Mafatlal stood for some specific values,
standards and excellence in business and at the marketplace.
In the fiscal year 1995-96 Mafatlal Industries with a number of
diversifications was a Rs. 2000 crore Group with about ten companies
in its fold, including NOCIL. Its portfolio of businesses comprised
textiles and garments, petrochemicals, finance marketing, natural
gas and LPG, plastic molding, machinery, electronic components and
IVP healthcare fluids. It was a multi-business conglomerate spread
all over India. However, people did not know this fact. People still
associated Mafatlal solely as a textile company. Its other companies
had their own distinct identities.
At this point, when the Group was expanding and growing Mafatlals
decided to project themselves as a diversified Group, just like the
TATAs and Birlas, both internally among its employees and externally
among its wide range of stakeholders. They decided to project it as
a pioneering yet modern group - one that has moved with times
through a strategic and centralized PR program, with participation
of each Group Company, morally, if not financially, but surely and
proudly.
Audit of Company Image
As this was to involve a major effort and a fairly large sum of
money, for the first year and for the subsequent one or two years,
it was agreed to first audit the company's image and the perceptions
of its stakeholders on various parameters through a formal research
before proceeding further. Based on the findings of the research a
program or campaign would be evolved which would ideally fulfill the
twin objectives of projecting an image of a group externally, and a
feeling of being part of a large and respected Group internally
among employees.
A leading Market Research Company was hired for the purpose and
briefed on the required research and its objectives within the
overall communications and proposed image strategy.
The target audience among whom the research was to be conducted were
defined.
1.
External
o
Financial institutions, investors,
brokers, financial consultants.
o
Customers, dealers and suppliers.
o
Media.
o
Government.
o
Business/Industry Associates and
Associations.
o
Management Students (future/potential
managers/employees).
2.
Internal
o
Employees
o
Shareholders
Scope of Research
The research was
conducted in the four metros, Mumbai, Delhi, Calcutta and Chennai,
plus Ahmedabad, Bangalore and Pune where the company had some of its
plants and offices.
About 400 respondents in the defined target segments were personally
contacted and interviewed by professional research investigators,
with a detailed and pre-approved questionnaire on the various issues
to be checked out.
Broad Findings
In looking at any research concerning image and PR, one needs to
remember that its findings firstly highlight awareness levels for
the company, and following this if the performance of the company is
good and has been communicated well, it generally reflects in good
image findings.
In the case of Mafatlal Industries the findings overall, thus, were
not too bad. The Group had high awareness, no serious negatives were
highlighted, and in fact some of the positive aspects also came out.
All in all, however, the finds showed that the company was suffering
from a "no image" or a "static image" syndrome. And that there was a
definite need for greater communications with the target audience
(shareholders).
Strengths
Strengths of the company and its image that were highlighted by the
research were :
1.
It was an old and steady group.
2.
Ethical and law abiding, with good
values. Not arrogant as some of the new Groups in India were.
3.
It was rated well in its commitment to
employees and maintained good industrial relations.
4.
Its products were good, value for
money/reasonably priced.
Weaknesses
Specific, areas of weaknesses that emerged in the research were:
1.
Awareness of the Group business areas
was low - except for textiles.
2.
It was not seen as a Group. Knowledge
level of its activities was low among external publics.
3.
It was perceived as old fashioned. Not
dynamic, fast growth oriented, innovative and profitable group.
4.
It was not known as a global player
(despite its large exports and the number of JVs it had in different
businesses. This was so even among its employees.
5.
Its products were not considered high
quality and to be innovative.
6.
As an investment the Group and its
companies were rated "average". It had a "weak" to "no image" among
financial institutions.
7.
It was not among the first, or an ideal
career option among students of management institutes.
The research, as it was
designed, also brought out further areas that needed attention for
the image at the Group level:
1.
The need for a Group identity logo,
house colour, etc.
2.
Projection of new projects, new
products, innovations, and potential growth areas.
3.
Projection of its global activities.
4.
Profitability of the Group companies
and the Group as a whole. And the fact that it was a profitable
investment.
5.
Projection of its employee strengths
and the employees being a key professional and productivity
resource.
It's known
contributions in community service and the field of environment
protection.
Vision Statement
Finally, the research suggested that the Group must have a Vision
Statement to support and back up projection of its being a Group of
the future in the Indian business scene - today and beyond in the
new millennium.
Hence, one observes here that the research not only threw light on
the awareness of the Group and its activities, the negatives and
positives of its image, but also additional factors which could be
used in the image building and projection strategy and plan.
Mafatlal's PR Strategy
After the research report had been studied, at a top management
meeting, the following board strategy was proposed and agreed upon
for implementation.
1.
Identifying issues and areas for
changing and building corporate image -- especially among external
publics.
2.
Packaging the desired image in the form
of a Mission or Positioning Statement, and communicating it
internally and externally through a program of activities and within
a time frame.
3.
Holding face-to-face discussions
(workshop) with a select group of employees for ideas on specific
activities to bring the change and build as well as strengthen image
in areas and op the issues identified.
Positioning Statement
Having decided on this strategy, the company's PR Department got
into action and worked out a Positioning Statement which would give
the Group more visibility and unity in its image and identity,
different from other textile groups in India.
Side by side, a Mission Statement was also evolved, which would help
provide the needed direction to the company's operations, people,
and communications.
The positioning and mission were then translated into a theme
message and incorporated into a specific PR program and activity
plan for the first year, supported by appropriate budgets.
The key elements in the PR program were:
1.
A newly designed corporate identity and
standardization of its use at the Group level.
2.
A corporate advertising campaign with
the theme that the Group was "more than a textile company" in the
press medium.
3.
A press relations program, including
periodic press releases and interviews with the Vice-Chairman and
other Company CEO on different and specific issues.
4.
Employee communications at different
stages on the Group's activities and imparting news relevant to
them.
5.
Sponsorship of events related to
products, and management or industry issues which helped project a
Group image.
6.
Incorporating an element of the Group
image in marketing and promotional efforts of the companies - for
instance on stationery, advertising, at outlets, and in the dealings
with financial institutions and the like bodies or associations.
In this PR program,
there was also a planned and built in proposal for a post-program
research at the end of the first year, to check out its impact and
results, and to find out the requirements for a further fresh image
building effort that was needed or would be undertaken
Bad Performance Nullifies PR
Unfortunately, after all the effort, the performance of the Group
did not meet up with the targets. The performance of the Group in
the different (consumers) sectors dropped sharply, resulting in the
Group having to rethink all of its overall corporate strategies.
Some of the Group companies were put on the block and sold.
Expansion was stopped and was to be reviewed - leading to a massive
cost cutting exercise. As a result, the PR and image building had to
be frozen. The objective of building image with a bad performance is
something unheard of in the normal circumstances.
Conclusion
The purpose of this article is to review the role of research in
public relations. While I have dwelt on the importance of research,
how it can be used, and be made an integral part of PR planning and
program development, the example or case discussed is one which did
not see its full and successful conclusion. It is, however one from
real life, and which was undertaken in all seriousness with total
management and financial inputs as well a support. Its full and
final completion would have made it a very good testimonial and
case-study on the actual and effective use of research in PR for any
organization, as well as for Communications and PR professionals to
draw lessons from.
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