BITA takes on LFRs

Mumbai

July 28, 2008

The Baroda Information Technology Association (BITA) is planning to have a
media campaign against large format retailers (LFRs) in the region with the
backing of Divya Bhaskar as its print media partner and Radio City as its
broadcast partner. Talking about this initiative Nilesh Joshi, Secretary, BITA
said, “With the emergence of LFRs in Baroda, dealers are suffering huge
losses. People prefer to buy products from big retail shops in the malls as they
offer them more physical comfort. To tackle this situation and to protect the
interest of dealers across Baroda, we will organize a media campaign.” This
campaign is not targeted at fighting LFRs, but is aimed at informing
end-customers about the advantages and disadvantages of purchasing products from
registered dealers of BITA as against large shops. Hitesh Patni, President, BITA
added, “The focused agenda of the campaign is to update our customers about
the difference in post-sales support offered by LFRs and BITA dealers. Another
objective is to make customers understand that the association members run a
service-oriented business, whereas LFR's business is targeted at only sales.”
LFRs are offering products at lower prices across all product lines, giving
stiff competition to dealers. The price differentiation, availability of several
products as well as all brands under a single roof, and the comfortable shopping
experience attracts customers to LFRs. But dealers state that LFRs cannot
provide the right quality of service to customers, especially the lower-valued
products.

Indicating the same Patni said, “This is the area we want to emphasize on
through our campaign. We cannot let our customers suffer due to lack of
services.”

BITA members also stated that sometimes LFR cannot provide the latest product
models as they try to liquidate their existing stock, which they buy in bulk.
“They sell whatever is available in stock. But our members can provide
customers with the latest launches as we are in touch with vendors directly who
inform us about new product introductions. This is another value addition that
the channel can offer over LFRs, which customers need to be told about,” added
Patni.

The association does not want LFRs to stop selling in Baroda. Instead, it has
written to several of these entities showing its willingness to workout some
level playing field for channel as well as LFRs. “There should be a middle way
where both sectors should not suffer. One way could be that small dealers should
exclusively sell semi-corporate or corporate products, while LFRs can focus on
home customers. We know it is a very difficult task, but still we are hoping for
some relief,” added Joshi. The association members announced the media
campaign from July 16, 2008 but in a quasi-mode. Patni said, “The project
still is in take off position and we are planning how to go about this. We are
also working on our budget strategies and which company to approach for
sponsorship. The details will be ready by the end of this month and we will
launch the product by August 1, 2008.” Besides the media campaign, BITA will
organize training programs and seminars for members and a minimum two
customer-oriented seminars. Interactive blogs have been created on the BITA
website to increase interaction between the association, its members and
end-customers.

The association is also using e-mail as a tool to inform customers about the
various products and services available. They are also planning to organize an
IT fair later this year, and celebrating Navaratri festival to gather people
around Baroda, which helps the association to have a strong relationship between
dealers, association and customers.