Wipro Technologies is a global
information technology, consulting and outsourcing company with 145,000
employees serving around 970 customers in 54 countries. I joined Wipro
Technologies as a fresh Engineering Graduate in 2006. I have had excellent
experiences working in Wipro so far. In the next 7-8 years I am determined to
gain the experience and skills required to lead the Marketing function of Wipro
Technologies. I have chosen to analyze Wipro as by doing so I will get the opportunity
to start thinking like the Chief Marketing Officer of Wipro.
This paper will highlight Wipro’s
Marketing efforts in the past, the current competition/challenges and
recommended strategies to overcome the challenges.
Past Marketing Strategies – Focus on Branding and New Customer
Acquisition
As per the brand tracking survey
conducted in 2006 Wipro’s awareness level among the survey population of key
non-clients was 35%, whereas the leading Indian competitor, Infosys, had an
awareness level of 50%. International competitors such as IBM and Accenture
were way ahead with near perfect awareness levels. It was certain that if Wipro
wanted to be recognized among the Top 5 global IT companies, Wipro needed to scale
up its branding efforts and achieve a distinctive positioning.
Highlights of Wipro’s Brand
Campaign.
- Branding efforts were focused on grabbing the
attention of CXO’s or in other words the organizational decision makers. Since
a CXO’s job required considerable travel, airport lounges, cabs and hotels
became the primary channels for the campaign.
- Wipro organized global academic and industry
events to improve visibility among current and future CXO’s. The Applied
Innovation Council comprising of Wipro, industry experts and thought leaders was
launched to analyze industry trends and work on innovative solutions to address
new consumers, markets and business challenges. Wipro Council for Industry
Research was set up in partnership with leading business schools such as
Harvard, Wharton, LBS and INSEAD to run joint thought leadership research
studies.The focused branding efforts
helped Wipro move to a new level as reflected in the Brand Audit by Penn,
Schoen and Berland Associates which showed that Wipro ranked second only to IBM
in favorability amongst prospective clients. This enhanced recognition in turn increased
new customer acquisition rates. Wipro currently adds an average of 45 customers
every quarter.
Current Situation
Competitor Strategy
Tata Consultancy Services ,Infosys , HCL and Cognizant Tech Solutions are Wipro’s main rivals. TCS’s strategy for longer-term growth is to expand its
geographic reach, industry coverage and service capabilities. It also plans to
deepen existing client relationships. Infosys is moving towards a non-linear
growth model, which is the norm among its peers. It has undergone major restructuring,
wherein it has consolidated businesses into three distinct service lines to aid
its transition from a pure-play technology company to a consulting firm.
Apart from the major rivals there
are numerous smaller, low cost IT service providers. These providers deliver
“Good Enough” services and leverage their low prices as the Unique Selling
Proposition. They are often able to sway away customers from premium service
providers such as Wipro.
Current Challenges
- Low-Cost
Competition and Customer Retention
Wipro has
achieved high brand recognition and a strong customer base however it struggles
against low-cost competition. While Wipro has established price floor limits
and does not agree to cut prices below these limits , low-cost IT service
providers are usually ready to service clients at prices that are 15-20% lower
than Wipro prices. Customers are on the lookout for vendors offering cheaper
prices and are willing to shift to low-cost providers if their services are
“Good Enough”. Wipro needs to devise a strategy to tackle low cost
competition.
- Shift
from IT-Outsourcing to Business-IT Consulting
Wipro has
developed high-end business advisory & consulting capabilities, however
majority of the customers still perceive Wipro as just a technology service
provider. The Marketing Function needs to promote Wipro’s consulting services
and transform customer perceptions.
Recommendations for the Future (Next 2 Years) –
Wipro needs a dual-pronged
strategy – one that both challenges low-cost competitors in the “good-enough”
segment, while also letting Wipro compete as a premium player leveraging value
and performance leadership. Wipro needs
a marketing strategy that achieves following objectives
- Develop long-term ties with existing customers,
maximize customer satisfaction and achieve “Zero Customer Attrition”. In comparison to the earlier strategy
which was focused on customer acquisition, there should be increased emphasis
on customer retention. Wipro should
not lose customers to low-cost competition.
- Promote Wipro’s
deep Business Advisory and Consulting expertise as its key competitive differentiator
from rivals
Proposed Marketing Campaign – “Bring the
Friends Closer“
1. Maximize Customer Satisfaction and Service
Value –Customer feedback has always reflected the notion that Wipro Teams
are excellent at delivering quality software solutions but struggle to provide
meaningful advice on how customers can use IT to do their businesses better.
With the formation of the Wipro Consulting Services (WCS), Wipro can now provide
high value Business Advisory and consulting services as an add-on to the
regular technology services and therefore maximize customer satisfaction. The
Marketing team will advertise Wipro’s consulting services and change current
perceptions of Wipro as a mere provider of software services. Based on the customer retention requisite existing
customers will be allowed discounts on availing consulting services.
2. Strategic Partnerships – Account
Managers/Client Engagement Managers will be incentivized to establish strategic
alliances with top customers. The Wipro IT360TM framework that helps define and
measure value from IT investments will be used to demonstrate the benefits of a
long-term alliance with Wipro. Wipro will fulfill the entire Information
Technology needs of the partner. Deep ties will minimize the chances of
customer attrition. Partners will be
expected to share domain knowledge and industry best practices with Wipro.
Wipro will leverage these insights and best practices while servicing other
customers.
3. Top Ten Focus – The Top Ten customers
account for 22 percent of the total revenues. These are our priority customers
and we can’t afford to lose them. The Wipro Marketing Team will evaluate the
customer perceived value by performing detailed customer value analysis of the
Top Ten customers. This will reveal Wipro’s strengths and weaknesses relative
to its competition. All functions within Wipro will work together to eliminate
exposed weaknesses and build on the strengths leaving no scope for customer defection
to competition.
4. Increase
Focus on Client Frontline Teams – Marketing Teams will target frontline
client teams. As mentioned earlier Wipro Marketing/Branding campaigns have been
mainly targeting C-Suite executives. However from my experiences working at the
client side in the US, I have learnt that frontline customer teams that work
directly with the Wipro Teams are equally important as their feedback forms an
important part of the vendor selection process.
As per my recommended approach Wipro will constantly seek feedback from
the frontline clients and ensure all feedback is acted upon adequately. To
build deep relations with its clients , Wipro will also organize “Experience
India” programs in which clients will be invited to work out of Wipro facilities
in India so that they can understand the Wipro culture and meet their
offshore(India based) Wipro colleagues. The customers will also be offered
Holiday packages to tourist destinations in India. Wipro Teams working at the
client side will be educated not only on the importance of understanding the
voice of the customer but will also be trained on the basics of client
engagement and relationship building.
5. Institutionalize Customer Defection
Management Program –Wipro Teams will perform surveys to extract and
investigate the reasons of customer defections. Defected customers will be
incentivized to participate in these surveys. Special Teams comprising of
senior Wipro executives will evaluate the survey results and use the findings
to devise strategies to pursue and win back the lost customers.
6. Standardize
the Referral System - Wipro will
perform loyalty/influence analysis on
its customers. The analysis will
result in a list of Wipro customers who are not only willing to provide good
referrals about Wipro but also have strong industry influence. Wipro teams will
pursue these customers to get recommendations that can be shared with
prospective customers.
7. Networking -Wipro has a large and
highly diversified customer pool of nearly 970 customers. Wipro will organize quarterly
business networking events that will facilitate interactions among the
customers. This will be a good opportunity for customers to meet senior leaders
and possibly make business leads. These networking events will also be a
platform for Wipro to provide customers deeper insights into Wipro’s business
values, objectives, strategy and future value offerings.
Conclusion
While most Indian IT vendors are
still employing transactional/short-term customer engagement models I believe
my recommended strategy to position Wipro as a long term – high value player
will yield high dividends in the next 2 years. Low-Cost competitors may be able
to provide services to the clients at lower prices but will not be able to
replicate Wipro’s high-value consulting/technology service offerings. Therefore
these small players will find it extremely difficult to cannibalize Wipro’s
customer base. With its focused
relationship marketing efforts Wipro will take a lead over its rivals such as
TCS and Infosys in establishing long term strategic alliances with customers
and will become the partner of choice.