Business, Marketing, Strategy

Four reasons why Diwali Shopping is different in 2014

Diwali Shopping Phenomenon

Nationwide, its been widely acknowledged that Diwali is the biggest festival in India. And, what does a festival mean? Festival means meeting family, friends, lots of sweets and of course shopping! This has been the norm for decades! But then, 2014 was different for India, so much so, that Minister for Commerce & Industry – Nirmala Seetharaman had to say this about complaints on Flipkart Sale Day

flipkart big billion day

Flipkart’s ‘Big Billion Day’ sale on Monday, that offered steep discounts on various products, has raised concerns among small and big traders that such campaigns would badly affect players in the traditional retail market.
 
“We have received many inputs. Lot of concerns have been expressed. We will look into it,” Commerce and Industry Minister Nirmala Sitharaman told reporters here.

So, what has changed? Here are the four things that have changed in the aftermath of the Big Billion Day on Flipkart, and similar discounts on all other players!


Smartphones have gone truly mainstream

Diwali Dhamaka week Amazon

While mobile was there in the pockets of Indians for a long time now, what has happened is that Smartphones have truly gone mainstream. Look at the offers going out – there is a smartphone element to everything . There is such a race to push apps to consumers, that extra discounts are being offered to make the app more attractive. This phenomenon started with Whatsapp going mainstream, and more and more people taking up data connections. The other day, the driver who drove me to the airport in Ahmedabad asked me the following:

Kya iss Samsung pe Whatsapp aata hai? (Does whatsapp work on this Samsung phone?)

This is truly the first MOBILE FIRST Diwali in the country, and the offline retailers just weren’t ready for it!

Online retailers and their funding warchest

Online retail makes anything available everywhere, that too at a great price. Checking top comparison engines tells you the story – flipkart, amazon, snapdeal, myntra are all in a league of their own when it comes to prices. Offline retailers will have to come up with something innovative as well, since Online retailers are entering the market with huge funding – Flipkart recently raised one billion dollars, amazon 2 billion, and Snapdeal too raised undisclosed funding with Ratan Tata himself participating.

Inhibitions to buy online reducing

Even now, roughly 10-15% business has gone online, and not more. Yet, why the offline retailers are feeling the pinch is that these 10-15% consumers were the top buyers. They were the ones who brought ‘Diwali’ to their shops in previous years. Now, with Mobile apps etc, people can shop on the go, and the products get reliably delivered to their offices/homes within 2-3 days. They have seen this with friends, and this has reduced inhibitions to buy online.

Unconventional tactics – Customer focus and unlimited choice

Check Snapdeal today on SnapdealOne big change that online players have brought to the table is customer focus. In order to attract customers, Online Players are taking customer service and customer focus to another level. Product bunding, discounts when shopping above a certain amount, same day delivery etc are taking customer focus to another level. Such level of customer focus isn’t found in the offline world. Just creating a huge offline store for customers to come and shop isn’t going to be enough from now on. True problem solving for customers is something that will win customers from now on. This has stumped the offline retailers in some way.


The future – will it be Online all the way?

So are winds blowing the online way only? I wouldn’t say that just yet! I would still back offline giants to come strongly back into the ring, with innovative solutions to overcome these challenges. They surely can, and thats when it would be interesting!

But this Diwali, the true winner in this hullabaloo has been the consumer! ‘Grahak Shakti’ has truly been on view in Diwali 2014, and that is the prime reason why 2014 Diwali has been different!

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Business, Marketing, Strategy, Technology, Web

Loyalty Card and Analytics together via Apps! – Way to go GBK

 

Everyone knows that Apps! are serious business. Instagram acquired for $1 billion, over billions of apps on iPhone and Android, to a large degree windows phone and blackberry failing due to lacks of apps! There is Facebook App, LinkedIn App, BBC News App, NDTV App, Hotel Booking Apps, Amazon Apps – many many apps! Most of the apps however are of 1 category – taking interaction from the user from the computer to their mobile device – which makes sense as it keeps the user engaged all the time.

gbkTill now, I have not seen many real consumer based companies moving to Apps to keep the user engaged and also gather useful analytics for themselves. This attempt by a Gourmet Burger Kitchen in the UK seems like a clever entry point.

Loyalty Cards have been around for a long long time. They give the user an incentive to come back, generate more revenue for the service provider and many times the user introduces other users to the brand as well. All this has been fairly well understood. Till now – loyalty cards existed like cards and not Apps!

By introducing the GBK App as a loyalty card – GBK gets so much more information and in turn helps grow the business.

  • User Analytics – App helps you measure number of repeat visits (per week, per month, per year)
  • Customer Retention – If the user starts using the app but does not come back then surely you can give them some special coupon to get the repeat business!
  • Location – When you are in the restaurant business, one of the most important things for you is Location! Through this app though you get to know exactly how many people and which people frequent which areas for GBK.
  • Paperless and Convenience – We all want to be green! And no one wants to look for bits of paper when you can have it in your smartphone.
  • Customer Categorisation – As the user needs to use to app before ordering to get the discount – you know their usual order size and margins – better of all you know the customer details. You can focus on the most profitable customers!

I believe this is just the start of the move of loyalty cards – maybe one day the term itself will change to Loyalty App!

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India Trending topics
Marketing, Strategy

Are Facebook updates and Tweets equal to Mass media popularity

Over the past few months, I have been trying to gauge if yesterday night’s top program was indeed on twitter or not, in its Trending topics section I mean. As an example, Sunday Night’s top Program in Mumbai was the Champions Trophy final, billed as the last clash between Sachin Tendulkar and Rahul Dravid. Empirically, the correlation stands. Even at 7.45 AM on Monday, these programs were on Trending topics of twitter. Check it out –

mass media to twitter trends

Trending topics on Twitter and correlation to Mass media spends

The real question here is – Can & should mass media be swayed by the “socially” active programs? Should mass media advertisers truly ascertain value to such twitter trending topic presence or Facebook Trend presence? Lets look at both sides of the coin here –

Continue reading

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Marketing, Technology

Whatsapp – The meteoric rise and Impact in India in 2013

Whatsapp and its rapid market capture in India

Whatsapp groups are immensely popular in India

When the world talks of Social Networking, they talk of Facebook or twitter, but when India talks about social networking in 2013, Indians talk of Whatsapp. Facebook is still the application that the web-enabled junta use, but in terms of engagement, whatsapp has clearly beaten them all.

In fact, a lot of Mobile telecom companies are claiming Whatsapp to be the trigger why people have started using their GPRS or 3G plans. Whatsapp has become THAT utility which has started making people look at stuff like 3G seriously. While this sounds incredulous, India as a country is totally capable of actually exhibiting that behavior.

2013 could be summarised as a year of true smartphone adoption ( even commoditization in India) . With such smartphones, users are becoming aware of the utility of 3G etc. For example, my family members today ask me of 3G availability in some region of India before they leave for that place. But in this age, conventional wisdom would have placed a bet on Facebook becoming more and more dominant on mobile in India. However, that hasn’t happened. How did whatsapp actually capture mindspace in India? Here are my top three reasons  why Whatsapp became so popular in India –

1. “BBM for all” – Around 24 to 30 months back, Whatsapp actually started growing due to its positioning as a cross platform messaging. At that time, BBM was immensely popular in India.

2. Made free by Android – As part of Android’s growth, Google was promoting Whatsapp as a free app on the Android ecosystem which lead to zooming adoption rates across the world, particularly India

3. Simple, ad free & Social – With the social network coming on Whatsapp, there was an inherent lock in, and now, it was further increasing due to simple usability of Whatsapp per se.

Whatsapp – the utility and impact it has caused –

1. Largest personal & enterprise social network + collaboration – A lot of teams at the workplace have an internal whatsapp and this is increasing collaboration

2. Largest Alumni networking tool – Be it your school group, college group or graduation class group- every major institution that people joined have a corresponding Whatsapp group now.

3. Always on, Always Live, easiest – You can whatsapp when travelling, listening to music or as a refresher during office hours. This wasn’t the case with Facebook as it was blocked in a lot of offices

Right from a wife telling her husband that she is safe but under the rubble after a building collapse in Africa to wishing Happy Independence Day to Indians all over India, Whatsapp has had a deep impact already & in my opinion would be the top mobile app in India by a long way.

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Business, Marketing, Technology

The Smartphone Commoditization era

Yesterday, I was watching one of those typically bollywood movies – Phata Poster Nikla Hero. Why – well, funny as it may sound, I like the senseless dance, plot, storyline etc once in a while. However, while doing so, I noticed a very curious thing – everyone in that theater had a smartphone and all of them looked absolutely similar. This happened with me in the local train compartment, at the bookstore, at the Ganpati festival line everywhere. That made me wonder – are Smartphones getting commoditized – so much so that Smartphones are now classified as FMEG ( Fast Moving Electronic Goods!) ?

Smartphones now getting commonplace in India

Smartphones now getting commonplace in India

With Android getting increasingly dominant in the ecosystem, and so many players jumping on to the Android bandwagon there is a definite possibility that smartphones will become the de facto standard of the mobile world. Just counting the number of companies with at least one Android 4.2+ model launched successfully in India gives you a staggering number – 15! – Samsung, LG, Micromax, BenQ, Karbonn, Sony, HTC, Intex, Xolo, Spice, iBerry, Videocon, Huawei, Gionee, Lava and many more if you dig deeper! Also note that all of these companies have multiple models at various price points. On a related note – The lion’s share of the profits on Android phones globally have been made by one company though – Samsung. However, smartphone commoditization presents a different set of challenges. I try to name a few here –

1. Early adopter disenchantment – From the day when Steve Jobs introduced the iPhone in June 2007, there has been a cult of early adopters – to smartphones, to tablets, to app stores and to ecosystems. Commoditization leads to disenchantment among early adopters. These early adopters will now find some other pasture to buy their technological marvels.

2. Eroding margins – If everyone is selling basically the same product, the only way to compete becomes price. Unless there is massive cartelization, prices are bound to come down, even if Moore’s law is applied to smartphones. While this is good for consumers, I doubt if the mobile industry can take such a situation. The raw material cost etc is high and increasingly, quality cannot be compromised in front of a consumer who is getting more technology savvy by the day.

3. Power of alliances and marketing grows – In such a situation, the carriers will become increasingly powerful and career bundling may again come into the picture for India. With the smartphones increasingly getting commoditized, alliances on the carrier side, retailer side, marketing side, mass media side and distribution side will become vital to stay afloat for these firms.

4. Consolidation – While some of these firms have enjoyed tremendous profits and have deep pockets – unless they diversify, there is a definite possibility of consolidation happening in the Device manufacturer industry. Similar consolidation has already been happening in the app manufacturer industry, gaming industry, e-commerce industry and I don’t see why this industry won’t see consolidation in the near future.

What is your opinion – Is Smartphone commoditization really going to happen? Let us know in the comments section! ( Image – 1)

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Business, Marketing, Strategy

Is Social Commerce a Bit of an Oversell?

Social Commerce has been a great talking point in the past couple of years. It’s based on a simple insight that marketers have known since kingdom come but haven’t been able to exploit – consumers don’t trust marketers, they trust friends and family. According to consumer research, 92% of consumers trust recommendations from people they know1 and 70% of consumers trust opinions of unknown users2. And more importantly, consumers today need relevant and timely recommendations. Social networks like Facebook and Twitter got the “social” in place by helping us connect but how could marketers induce us to spend by simply “being social”? It so happens that our conversations with friends often lead to an exchange of information and recommendations on brands and goods that can spur purchases.

The First Wave

Notice the increasing number of social sites designed around interests – fashion, DIY, crafts, photography, travel, dining, et al.? Pinterest, Polyvore, Tumblr and Foursquare are a few that come to mind. Twitter and Facebook also have some elements of social commerce. Several of these sites have a visual interface like the mood-board on Pinterest that users can pin images onto along with the Twitter-like Followers concept to “like” or endorse other users’ boards. The idea is that we as users express our interest in ideas, themes, or even consumer goods because we enjoy personalizing and sharing our interests as an extension of our selves. In short, sharing interests gets people talking and talking leads to purchases. Sure it all sounds dandy, but it’s not without a few hiccups. Allow me to explain

1. Interest does not necessarily equal Purchase Intent

Monetate-convOne interesting factoid about social commerce sites like Pinterest, Polyvore and the like is that they have a strong female user base (nearly 70-80%). Categories like apparel, fashion, crafts, cooking, etc. dominate interactions. Women spend a great deal of time online browsing e-commerce sites for apparel, shoes, travel, etc. but may purchase very infrequently. They might like to create inspiration boards filled with items they love but they might not be able to afford a lot of those things or might not even think they need to buy them.

Monetate-order

This explains the data from Monetate’s Ecommerce Quarterly 2013 which compares conversion rates by referrer (source site where purchase process originated). Of course, some experts have suggested that most users may be loath to leave their interest-driven activities and get down to the drudgery of online shopping. Instead, they may use a search engine at a later date to purchase the item directly from the e-commerce site. Hence, these rates may be understated.

Though what’s exciting about social commerce is that average order values are fairly large, which means if the conversion rates could be improved, it could be highly effective

2. It won’t work equally well across all categories

There are two aspects of converting a social commerce interaction to a purchase: 1) The category of the good should be such that it stimulates social conversations and 2) The category of the good should be such that a recommendation is valued. In the offline channel, consumer research from a few years ago in the US stated the efficacy of word-of-mouth recommendations for various categories of goods as:
BIGResearchEating out and Apparel are two categories that have been explored in social commerce today because they satisfy the two conditions. But electronics, a high-involvement and expensive purchase which should rely heavily on recommendations, hardly figures on any social commerce site because it simply isn’t a topic that people discuss on a regular basis.

3. We are habituated to offline interactions

76% of Word-of-Mouth conversations take place in person3. The fact is that social commerce advocates expect that people will carry out social interactions online instead of or in addition to their offline interactions. That’s a big ask. Sure, some folks may give it a whirl for the sheer novelty of the online platform but the lack of sustained interest has felled many an exciting platform or app. Changing habits is not easy but not impossible either. Social commerce platforms need to cleverly convince users that it is worthwhile spending their time on online social interactions. The need gaps that social and e-commerce fill are networks and convenience – these should be unified to bring a truly valuable proposition for users.

4. Offer/coupon model does not ensure patronage

In a bid to build traction (in Groupon’s case, it’s the entire business model), most social commerce platforms tie up with merchants to offer deals and coupons, hoping that once users get a taste of the platform’s features, they’ll stay. It’s a problem similar to Facebook’s “Like” button on brand pages which research has shown is mostly clicked to avail of offers/deals. Once the offers dry up, so does the user base. Similarly, gamification strategies like those on Foursquare rarely build up any social incentives to sustain interest.

There’s no doubt that social commerce is here to stay. In theory, it’s brilliant. In its current format, however, the implementation is slightly lacking. Innovation in terms of balancing the social and commerce elements and clarifying the value propositions for consumers and businesses is much needed.

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Will 2013 be the year of the enterprise startup?
Business, Leadership, Marketing, Technology

Is 2013 the Year of the Enterprise Startup ?

There has been a lot of talk about enterprise startups becoming ‘cool again’ , ‘the place to invest’ and so on. So what has really changed? How have enterprise startups, long considered boring and ‘un-scalable’ become sought after again? Here are the top three reasons

enterprise-startups
1. Tremendous focus on ROI at enterprise level
– The one common thread across all enterprise startups is an unwavering focus on ROI. This focus has particularly come in the spotlight in the wake of the global downturn that hit the World Economy in 2008. After this, there has been a definitive shift towards optimally using all resources, without exception, at an enterprise level. This has created newer opportunities and startups are exploiting those.

2. B2B outreach is easier than before – The biggest problem for a B2B startup is marketing. For example, an Accenture advertisement at best serves as a branding tool in the minds of 99% of the advertisement viewers. After all, mass media is definitely not the way to reach out to the enterprises. However, with the advent of channels like Google, Slideshare, Linkedin etc, this process has become simpler and inquiries through these channels are increasing for enterprise startups.

3. The advent of the cloud – Cloud, the ease of access and lowering costs of storage has meant that enterprise startups can stay afloat longer by curbing their expenses to the minimal. It wouldn’t be far fetched to say that enterprise startups owe a lot to services like AWS ( Amazon Web Services) for actually enabling their business models to go afloat at a lower cost than before.

Given all these factors, it is natural that enterprise startups are doing all sorts of innovative things and most importantly, at scale! Here are a couple of areas in which enterprise startups are totally cracking the whip –

(a) Analytics – A huge area where startups are innovating big time is analytics. An analytics backbone is a huge plus across sectors, be it in the ad network domain or in the enterprise effectiveness domain.

(b) Cloud storage – Startups like GitHub, Box, Dropbox, Diablo, Messagebus, Gridstore etc are all innovating on the cloud storage front and evolving new business models that are not only sustainable, but also scalable. And, they are well supported by Angel/VC money as well.

(c) CRM – Salesforce has literally become a common factor across almost all major companies today. The scale that Salesforce has been able to achieve has proven the scalability of B2B Startups. However, in the field of CRM, Salesforce is not alone and is closely followed by competitors like SugarCRM.

Given this, its natural that top VCs are entering the fray here –

KPCB is investing $200 mn

Kleiner Perkins Caufield & Byers will invest at least $200 million this year in mobile applications and cloud computing services for corporate users, investment partner Matt Murphy said. The Menlo Park, California-based venture capital firm, which boosted its enterprise-technology investments in 2012, will also seek security-startup investments, Murphy said in an interview.

Startups focused on corporate users are benefiting as employees adopt personal smartphones and tablets for work. That’s triggered increased investment by companies in new tools to manage mobile and cloud-based computing, Murphy said.

“The traction in our enterprise portfolio really surprised us,” Murphy said. “We view the timing and opportunity as even better than in 2012.”

WSJ Articles about enterprise startups

When Andreessen Horowitz VC Peter Levine looked around a conference room Thursday in San Francisco and saw 10 reporters sitting next to five CEOs of enterprise tech startups, he could barely contain his glee. “There’s a renaissance in enterprise computing – if this were five, six or seven years ago, to get one person to show up in this room would have been quite difficult,” he said. Perhaps he was calculating how much those exits would be worth. After all, 80% of tech IPOs next year are expected to be from enterprise startups. Andreessen Horowitz has invested more than $100 million in the startups in the room.

An India view

In India as well, there is an unquestionable need for enterprise startups. In fact, a lot of Indian startups focused on the enterprise have made global waves too – Zoho being one such example. Will India react or adapt to this boom in Enterprise Startups? What enterprise startups will emerge from India in 2013? Have your say below.

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Royal Enfield Pune Showroom 7
Business, Marketing

Design led business transformation – Royal Enfield Showroom

Editor’s Note: Design today plays a crucial part in every business. To quote Steve Jobs –

Design is not just what it looks and feels like. Design is how it works.

This is becoming increasingly true even for offline businesses. The way your customers get introduced to your product, the level of comfort they experience when they visit your office, and most importantly, the flow through which they go while ‘interacting’ with the product influences sales. Alok Thakurdesai, a designer based out of Pune, has taken a shot at proving this intuitive but not-easy-to-prove hypothesis. The case in consideration is the Royal Enfield Showroom designed by him which has led to a 50% increase in sales as compared to other established showrooms. His writeup and experiences are below –

Redesigning the way customers experience Royal Enfield

These days, people are becoming more and more design aware. It is in the sub-conscious of the customer that design makes an impact. In the Retail business, what differentiates you from the pack is what experience you have on offer. Yes you have a brilliant product, but how you present it to your customers that matters. This is exactly what we at Three Fourteen Design wanted to achieve when we started work on redesigning Royal Enfield‘s Retail Space Design.

Auto Companies focus on building retail spaces that are mere bases of interaction with the customers. But how are they presenting the company to the customer? Design goes hand in hand with the User Experience at an Automotive Showroom. When you sell an experience, people will be loyal to your company and they will never even look elsewhere.

Royal Enfield as a company has a very loyal customer base, and its roots are grounded in rich history from England to india. The starting cost of a bike in the Royal Enfield range is a lakh rupees. A lakh rupees! And the fact that each and every bike is hand-built just adds to the value and the “pride” quotient. Why then should the Retail Space be ignored? The Showroom is the first point of interaction between the customer and his/her future bike. We wanted the showroom to shout out “Welcome to the ROYAL Enfield experience”.

Each and every corner of the showroom we designed keeping in mind the company’s story. The colour palette is warm yet rich with small added details. Details that, just like the company and its bikes, makes you want to explore for more! Every piece of furniture holds some relation to the history of the bikes. For example, the chairs we chose were designed by Charles and Ray Eames during the height of the Industrial Revolution. Elements like these add to the detail of the experience!

The bikes and the design now compliment each other well and makes your experience of buying your next Royal Enfield even more Royal!

Royal Enfield Pune Showroom 7

Royal Enfield Pune Showroom -vintage enfield

Royal Enfield Pune Showroom 1

Royal Enfield Pune Showroom 1- bikes

 

Photos and case study: Threefourteen | You can reach out to Alok Thakurdesai on his website – Threefourteen .

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Ecosystem rankings 2012
Marketing

Silicon Valley in India- Possible reality or Marketing pipe dream?

Silicon Valley is perhaps the world’s greatest startup ecosystem which the entire world is trying to emulate. The efforts of the countries are mapped in this fabulous Startup Ecosystem map –

 

Ecosystem rankings 2012

According to the Startup Ecosystem map, Bangalore is listed on the 19th position from among the 20 cities under consideration.

This begs the question to be asked – How is India doing on the front of the Startup ecosystem building? Not very well on any Global metric apparently.

Here are three big reasons why India very badly needs a Startup Ecosystem –

1. Massive educated workforce churned out by Universities – Every year we see such huge numbers among the work force churned out by Indian colleges – not only engineering but science, commerce etc

2. Relatively larger uncertainties for bigger companies – Given the retrenchment going on in many sectors, it won’t be wrong to say that Startups will provide employment to a larger audience than before.

3. Exciting opportunities with potentially larger impact – At a startup, there would be a greater opportunity to create an impact as compared to a smaller company.

Given this, is India missing a huge marketing opportunity by NOT making a city like Bangalore or Pune a Startup Hub?

I certainly think so. Given the huge fillip that IT has given to Bangalore or Pune or Gurgaon or Hyderabad – local Governments should be literally jumping at the opportunity at creating a startup ecosystem. It has the potential to attract the best talent from the globe to that city and more importantly is a better way to collect sustainable and ever growing revenue. Look at the model that the state of California built for itself with the Silicon Valley. While it is true that the state was blessed to have minds like Steve Jobs and Sergey Brin, the fact is the California and US Government also played a small but important part in the Silicon Valley development.

Look at Tel Aviv – In 2009, Israel had more IPOs on the NASDAQ than China , India and Russia combined. Thats a telling statistic. If Israel can do it, so can a focussed approach from a country like India, with the abundance of talented people .

To Quote the article –

Highly advanced ecosystem and bustling with tech companies

– In 2009, 63 Israeli companies were listed on the tech-orientated NASDAQ – more than from Europe, Japan, Korea, India, and China combined

– Almost every major tech company today has some kind of subsidiary in Israel: Intel, Microsoft, Google and Cisco etc.

– 39% of Israeli high-tech employees work in the R&D departments of multinational companies

  • Closing fast on Silicon Valley due to risk-taking nature

Given all of this, it may seem as if India has already fallen behind . What is the best foot forward to build a Silicon Valley in India? Have any opinions? Let us know!

Source for diagrams and quotes: Telefonica digital

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Leadership, Marketing, Strategy

What is the missing piece in personal branding?

People have realized that the most important brand they should work on is they themselves. Proliferation of forums,  blogs and social networking sites like Facebook and LinkedIn are a testament to that. People have gone far enough creating sites about themselves or creating videos on YouTube.

So, everything looks complete, what is the missing piece one may ask.

One of my colleagues asked me the same question which prompted me to do some research on this topic. The results of this study might be expected by a few but may be surprising for others.

The first startling fact was that people do not believe on most of the claims people make unless

a) Someone known to them endorses the person
b) Person is endorsed in a media report or article
c) He/she has completed a degree or certification they believe in.

From above the learning is clear and the results depict what changes you need to make.

The next fact which was surprising was reluctance to share personal branding material with others, this was majorly true for people outside media, entertainment and HR fields.

a) People believe that they should not share it with colleagues as it would mean they are looking for a job, which is not necessarily the case
b) The circles are comparatively limited to their area of work.

So, they lose from both ends. These are the people who must realize the need for personal branding more than others.

For a start,  try using brand yourself for knowing how you are doing currently.

Have fun marketing yourself.

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