Hyderabad, June 8: One has heard of housewives peddling wares door-to-door-from cosmetics, plastic containers, detergents and watches among a host of other products in a bid to earn that extra rupee. Now one can add software to this list with a little known IT company here deciding to take a leaf out of the books of companies like Oriflame, Tupperware and Amway to use direct marketing techniques to push hi-tech computer code to potential customers.Mondial Technologies, a one-year old company which has been producing stand-alone software packages for writing classroom timetables, nursing home and clinic management systems, jewellery designing and cataloging and chit fund tracking, has struck out on a hitherto unheard of path of selling software just like any other household commodity.
"Ours is the only software company which is into direct marketing" claims Rajendra Kumar, director Mondial Direct, the direct marketing arm of Mondial Technologies.
Similar to what Amway or Tupperware might do, Mondial Direct has worked out a network of distributors comprising mostly IT literate students, medical representatives and even housewives in some cases. A new distributor is recruited every week who in turn appoints one more which means that at the end of every fourth week there are 16 distributors adding to the team.
"Direct marketing has failed in India because of bad payments systems", says Rajendra Kumar talking about the prospects of the method vis-a-vis software. And sometimes sub-standard products from good brands also cause damage. The cut-throat competition between companies has also contributed to the early demise of the concept in India, feels Kumar.
But talking of his own venture, Kumar is optimistic that by virtue of being the only player as of now and considering the product profile of his company, the going should be easy.
His clinetele includes schools, colleges, doctors and hoteliers among others with the cost of the software package being directed to them ranging between Rs 3,000 and Rs 18,000 apart from a Rs 20,000-product for doctors which includes a free PC thrown in for good measure. On an average, a distributor makes 10-15 per cent of the total business volume which differs for each product.
While one might wonder if the system despite its uniqueness is working, the fact remains that for a small start-up the direct marketing route with its low-marketing costs appears ideal even if it is a software company.
Though pursuing the direct marketing route, the company is now thinking of joining hands with the big guns of software marketing. For instance, talks are on to bundle Mondial products with HCL through a tie-up with Pentagon Infosystems, partners for HCL products.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.