MTV says so...

Yesterday morning, we were able to enjoy a lecture given by Professor Balakrishnan concerning branding strategies from an Indian perspective. We were introduced to various Indian brands and the methods that Indian companies use to market to the general Indian population. It is interesting to see what large multinational firms must go through when branding in India. The lecture reminded me of the lecture given by Dr. Aggarwal during one of our marketing courses regarding Thums Up! Soda, a popular Indian soft drink.

Coca-Cola is one of the most widely recognized brands in the entire world. In this day and age, it is difficult to find a country that does not have Coke products. Without a doubt, Coca-Cola has an effective marketing department that has reached developed as well as underdeveloped countries. As a result, it was a surprise to us that Coca-Cola ran into significant problems when marketing in India. The brand name loyalty to Thums Up was so strong, Coca-cola did not sell nearly as well as the nationally incumbent product! For the first time in history, Coca-Cola was forced to retain the Thums Up! brand name, even after acquiring the business a few years later. Last night, as a small group of us were enjoying a Subway sandwich in Mysore, we noticed that Thums Up! soda was available right next to the Coca-Cola dispenser in the soda fountain. While it isn’t completely unusual to have two sodas (Coke and Sprite) from the same manufacturer in the same fountain, it is a little unusual to have two separate colas (when one of them isn’t diet). I’ve got to admit, I’m glad Thums Up! is not the cola of choice in the United States. It definitely has a distinct flavor that doesn’t agree with my palette.

The same morning, we were informed after our class that we would have members of the local media, TV and newspaper, present to talk to us about our experiences in India. Great. The one day on this whole trip that I didn’t dress in business attire for class. All in all, I think I counted 8 reporters there, asking us various questions about India, outsourcing, differences in business, and comparisons between the MBA programs in India and the United States. While I chose to generally stay quiet, there were a couple of questions that I felt strongly about which forced me to pipe up. One of the reporters asked about the general perceptions of the United States concerning outsourcing in India. I didn’t need Friedman’s book to answer this one. This question was very real and was a daily conversation that I had to have with various businesses in the United States.

In my experience, the overwhelming opinion regarding outsourcing to India in the United States is usually tied to some negative connotations. For those that have lost their jobs and businesses to outsourcing, the topic can be very emotional and personal. Certainly, there are various trains of thought regarding whether outsourcing is right or wrong. Furthermore, the debate can be spun into whether outsourcing is right because it is a greater good for the majority versus the minority, stimulates our global economy, etc. Still, I can completely understand why thousands of Americans feel that outsourcing is a problem because the topic has hit very close to home. It is hard to justify the “greater good” when you don’t have a paycheck coming in to pay for your mortgage.

What people need to understand is that outsourcing and globalization is a reality and a necessity in order for our global economy to thrive. Whether you want to believe it or not, outsourcing is what actually keeps our costs DOWN and is one of the reasons why our American economy has not already sunk into a recession. It provides the opportunity to supply more employment both domestically and internationally and it is the reason why we can enjoy the various goods and services in the United States that we do. In the Midwest, I hear statements like, “I bought my John Deere tractor because I want to buy American.” What people are not realizing is that John Deere has large manufacturing plants outsourced to Japan. Conversely, Komatsu, a competing Japanese company, has manufacturing operations in the United States!

In my humble opinion, the real problem lies in the standard of living that we have come to expect in the United States. We externalize our problems and complain about factors such as sub prime mortgage rates and inflation, when in reality, we are buying homes and products that are far beyond our means. There are far too many people who spend money they don’t have on luxury cars, jewelry, and clothes just because some credit agency gave them a $100K limit when they earn $25K per year. How does that math make sense? I’m sick and tired of hearing about how gas has gotten expensive, food is expensive, homes are expensive…Take some time and look into the mirror people! Yes, it is going to cost a lot to fill up your 50,000 gallon tank for your brand new Hummer. Yes, it is expensive to go to the grocery store and buy lobster tails and filet mignon. Yes, the house payment on a $500K house is expensive when you make minimum wage.

Do you want reality? Reality is that the majority of employees in India make less than $200 a month. Reality is that a farmer in northern India committed suicide yesterday because he owed 1 lakh in debt ($2,500 US). And this is just India. Yes, I understand that the costs of living vary across nations and you have to take into account what the Purchasing Power Parity is and yadda, yadda, yadda. Still, apples to apples, we have a very, VERY nice life. And outsourcing is not the main contributing factor to why Americans are losing jobs to developing nations. It’s all about education. Don’t take my word for it. Don’t take MTV’s word for it. Don’t take Oprah Winfrey’s word for it just because she is a nice person and gives away tons of free stuff and tells you to vote for Obama. Vote because you have educated yourself about the platforms these candidates stand for. Vote because it is a privilege, not a right. Vote because you want our nation to be represented by the best, possible individual for the job, not just because your friends talked to you about him/her at the bar. I hate to admit it, but not long ago, I was ignorant to the very soapbox I am standing on now. I’ll always be grateful to Cathy for showing me that if you don’t exercise your right to vote, you don’t have the right to complain…

So I’ll leave you with that. I don’t even know how I got off on this rant, but always, always, strive to educate yourself. Get the facts, do your research, stay current with what is going on in the news. The second you stop trying to educate yourself is the second you grow ignorant to what is going on around you. Now go read a book…