Mangalam Maloo Profile picture
Aug 20 9 tweets 4 min read Read on X
I just learnt about the “Banana Rule” at IKEA and it blew my mind! 🍌

This is their secret sauce for letting people fail, explore & build ideas.

Once you learn it too, you’d want it in every organization.

Here’s a thread. You’ll enjoy it!

@CNBCTV18Live #FMCGisLife @IKEA

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The rule is simple: if you believe in an idea, and want to try it, even if it sounds nuts, you can play your Banana Card. 🍌

It’s like saying:
👉 “This might flop, but I want to try.”

No approvals. No punishment. Just trust. The organization will work towards your idea!

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There are levels.

🍌 Every co-worker can play unlimited Banana Cards with their boss for everyday ideas.

🥇 The big, high-powered bets? Those need a Golden Banana - signed off by the exec leadership.

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Why a banana?

Because it’s silly, fun, and takes the fear out of failure.

But behind the silliness is a very serious business advantage: psychological safety = innovation.

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The results? Legendary.

📦 Flat-pack furniture - born when an IKEA worker unscrewed a table’s legs to fit it in his car.

🍴 IKEA’s food business - a €2.8 billion arm today, started as an in-store experiment.

Both “banana” moments that changed the company.

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Some more 🍌 examples

🇦🇺 Eat your discount → spend $20 on meatballs, get $20 off furniture. Footfalls surged.

🇨🇦 Auto-sized boxes → cut 18% cardboard, 55% better truck fill.

🇫🇷 Banana Action contest → 50+ wild ideas, one winner got €10,000 to scale.

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Then there are some really crazy bananas.

👕 IKEA made Meatball Pyjamas & set a Guinness Record for the largest gathering in matching PJs.

😴 The IKEA Sleep Report turned a boring bedtime topic into a global marketing win.

This is failure-friendly culture at play.

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What struck me in Älmhult is this:

Banana Cards aren’t just for furniture. They shape IKEA’s logistics, marketing, culture, even salaries & people policies.

Banana Cards = everyday trust.

Golden Bananas = bold bets.

Employees here know - fail small, win big.

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So here’s my question from Älmhult:

How many great ideas are companies missing because their people are too scared to “go bananas”?

Would you want it in your company too?

9/9

@IKEA @CNBCTV18Live #FMCGisLife Image

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More from @blitzkreigm

Jan 5
ITC HOTELS

Tomorrow is the ex-date for demerger of ITC hotels

Here’s a thread of all things you need to know



@ITCHotels @ITCCorpCom @CNBCTV18Live #FMCGisLife

1/n cnbctv18.com/market/itc-hot…Image
The Structure

It was first announced in July 2023

Wherein,
- ITC owns 40% in Hotel Business
- 60% to be demerged to shareholders via share swap
- Ratio at 1 ITC Hotel Share for every 10 ITC Shares

A shareholder owns 40% of Hotels via ITC and 60% through ITC Hotels

2/n Image
THE BUSINESS

ITC HOTELS
As % of ITC’s Total Business
Revenue            4%
EBIT                   2.5%
Total Assets    14%
*As of H1FY25

Since Capital allocated is a lot higher than revenue and EBIT contribution, the demerger is ROCE accretive for ITC

3/n

Sanjiv Puri Earlier: Image
Read 8 tweets
Sep 13, 2023
Vande Italy!

When I put this caption on Instagram the other day with a picture of this train in Italy, a lot of comments said - Smart wordplay!

Except that it wasn’t just wordplay, It’s actually the truth.

Here’s Vande Bharat’s Italian connection. A story you’ll enjoy!

1/n Image
A lot of these smart looking high speed trains in Italy, are actually the inspiration and perhaps the reason for our Vande Bharat trains. In fact, a lot of these trains in Italy were also, actually made by a (then) majority Indian owned, Italian company - Firema Transporti

2/n Image
2015: TITAGARH bought 90% of Firema for €25m to enter the high speed passenger locomotives business. Firema had an orderbook comprising of these snazzy trains you see here for Trenitalia. This business wasn’t profit making so, one wondered - why they entered this space?

3/n Image
Read 8 tweets
May 26, 2023
FMCG Index at record high

Here are 8 recent conversations that you should watch to understand the opportunity in India

They're with Nestle, Britannia, Asian Paints, Titan, Tata Consumer, Marico, Dominos and Pidilite

They're all *heart*
#Thread #FMCGisLife @CNBCTV18Live

1/n
NESTLE

Suresh Narayanan spoke about growth coming through infrastructure changes

Easier distribution has improved aspirations of vast areas of our population

@Nestle

2/n
ASIAN PAINTS

Amit Syngle spoke about the nature of demand in paint industry and how everyone is eyeing this space now.

A lovely lesson on industry leadership and growth from them

@asianpaints

3/n
Read 10 tweets
Feb 27, 2023
Soft Drinks and Their Brand Ambassadors

Just creating a quick #Thread from memory

Feel free to add

Aamir Khan has endorsed both Pepsi & Coke

#FMCGisLife #Pepsi #CocaCola #Advertising

1/n
Aishwarya Rai too has endorsed both!

Was a model in the Pepsi Ad with Aamir Khan named Sanjana (a phenomenon that increased the number of girls named Sanjana in India)

afaqs.com/news/guest-art…

Also endorsed Coke with Aamir, later

2/n
Salman Khan

Can never forget the Pepsi vs Thums Up Ads of our childhood.

Taste tests and Thums Up's positioning as the Man's drink vs Boys.

Turns out, the boy eventually turned to Pepsi when he became a man.

3/n
Read 8 tweets
Jan 19, 2023
I don’t think one person’s opinion matters on this, and least of all mine.

But for what it’s worth - I personally think it’s unfair on minority shareholders for Unilever to ask for a higher royalty. You’d rather increase the pie than increase your share of it.

1/n
I also think HUL delivers a lot of value to Unilever anyway.

They’re 11% of their global sales but 2/3rd of Global Market cap.

Unilever PLC trades at 18X forward earnings & HUL at 60X

HUL has aspirations to be the top contributor to Global sales as well

2/n
So for all the value, brand usage and technical expertise that Unilever provides to HUL, they get enough in return for their investment already.

Bigger absolute sales and higher valuation > increase in Royalty %

3/n
Read 7 tweets
Oct 27, 2021
ITC Q2FY22: Thread
- Slightly Shy of Expectations, nothing worrisome
- Cigarettes Largely in Line, FMCG Rev below est
- Appears Cig. Volume largely in line with 9-10% est
- Strong 10% EBITDA Margins in FMCG
- Strong Bounce-back by Hotels, Good growth in Paper
#FMCGisLife #ITC 1/n
ITC Q2FY22
Revenue at 12731 Cr vs Poll 12785 Cr
EBITDA at 4615 Cr vs Poll 4680 Cr
Margins at 36.3% vs Poll 36.3%
PAT at 3697 Cr vs Poll 3725 Cr
#FMCGisLife @ITCCorpCom #ITC @CNBCTV18Live
2/n
ITC Q2FY22
SEGMENTS REVENUE POLL
Tobacco +10% 11-12%
FMCG +3% 7-8%
Hotels +260% 150-200%
Paper +25% 15%
#FMCGisLife #ITC @CNBCTV18Live
3/n
Read 5 tweets

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