Surround Sound
Multiple Zones India takes catalogue marketing forward to cover the customer from all angels
(Roshun Povaiah, A&M, June 15, 2001)

I believe in taking the Chakravue approach, "says Manpreet Singh, CEO, Multiple Zones India Ltd. He says this in connection to a unique retailing model that his company has developed for computer retailing. Essentially, the model is based on catalogue retailing, both online and offline, but with a difference.

Multiple Zones, that just clocked a sales turnover (2000-01) of Rs. 28 crore, with net profits of Rs. 1.5 crore, believes in keeping the customer covered from all directions. The customer here is the corporate customer. Says Singh, "Initially, when we entered India in 1997, we set up shop just as any other catalogue retailer would. We were a consumer-focused company. But that's strategy that does not really work in India." In ths US, retailing is much more organized. Usually, catalogue marketing in the US is an offshoot of a big retail store, such as a Wal-Mart. Consumers are confident that what they see in the mail-order catalogues sent out by these stores is exactly what would be delivered to them, making mail order a convenience. But in India, retailing is still an experience. The touch-and-feel factor is still prevalent. That's why even online retailing has not caught on yet. Or on the other hand, on the other hand, consumers often try to beat the system. Says Singh, "For example, if a person ordered software online and we sent him the CD, more often that not he would copy it, and then return it for a refund saying it was damaged or did not work properly." That's part of the reason why Singh decided to focus on large corporates and business houses.

The business model that Multiple Zones India (MZI) has adopted is quite similar to what the online computer retail chain, CDW, uses. MZI now uses what was formerly its primary business driver, catalogue retailing, as point-of-sale advertising to corporates. The decision-maker who views the catalogue can then make a call to the company, which gets routed to the call center. The call center passes on the message to the Web-sales division who in turn interacts with the direct-sales team to service the customer, as well as take care of logistics and fulfillment. In effect the customer gets covered from all directions. This, as Singh explains, is the `Chakravue' approach. The website also serves as a 24x7 customer-service avenue in conjunction with the call center.

Presently, MZI claims to have about 4,000 corporate customers who regularly source computer hardware from them. Pricing, however, is not much different from what a normal retailer could offer though the prices vary from customer to customer depending on the volume of business being generated. "We offer customer-centric differential pricing, " says Singh. The differentiating factor, says Singh, that MZI has to offer is the service and instant availability to a customer due to its network, which gives it an advantage over a traditional hardware retailer.

"Another advantage," says Singh, " is that a purchase manager in an organization can order, monitor availability, check prices and maintain accounts online due to our Web presence, adding to the convenience value." Payments, however, are completely offline as in any traditional business, given the nascent stage of online payment mechanisms and Internet security in India.

Essentially, MZI claims that it wants to strengthen the corporate marketplace. The advantage it has is in being able to bring about uniformity in pricing and the retail experience across the country. Singh's next milestone: Extend the same model across the world. "As long as we keep technology as our core business, anything is possible. Of course, with an eye on the bottom line always," exclaims Singh Rounded ambitions indeed.

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