Sons of Soil!

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‘Kar lo duniya mutthi mein’; and Mudra for sure has an ambition to straddle the world!

Once upon a time, Mudra was a star among stars. In a MNC dominated world, it proudly wore Indianness on its sleeve and demonstrated high levels of excellence. Today, every nook and cranny of Mudra’s office in Lower Parel in Mumbai, speaks volumes about that golden period. Those days maybe over, but the spirit lives on...

The year was 1976 when A.G. Krishnamurthy joined Reliance Industries as an Advertising Manager. Four years down the line, AGK (as he’s popularly known now) went to the Late Dhirubhai Ambani with the proposal of starting their own advertising agency. In his true entrepreneurial spirit, Ambani jumped at the idea. He gave him Rs.35,000 a locker along with its key and asked him to create the best textile advertising in the country. Mudra was born!

It started with only one client, Vimal in a 500 sq. ft. office in Ahmedabad. Soon other clients followed, Rasna, Nelco, McDonald’s, et al. Those were heydays and there was path-breaking advertising, ‘Only Vimal’, ‘I Love You Rasna’, ‘Humko Binnie’s Mangta’, to name just a few. Mudra gave the industry its many ‘firsts’ (first ever double-spread colour ads, first advertising institute MICA and many more). Within a short span of nine years, Mudra became the No.1 agency in the country.

The country’s first in-house agency that started with only one client, today boasts of an eclectic mix of Indian and MNC clients. Madhukar Kamath, MD & CEO, Mudra (he took over after AGK retired in 2003) explains, “In the multinational space we have clients like Philips, Johnson & Johnson (J&J), Unilever, and among Indian brands there’s Godrej, LIC, Big Bazaar, SBI, HPCL, R-ADAG, Air India, Madura Garments, et al.”

Today, Mudra might have lost its identity as a trailblazer, but in this age, when MNC agencies have gobbled up almost all big agencies of the country, it holds its head high as being only aligned with a global network (Omnicom’s DDB has a 10% stake in it) and retaining its name that is still very Indian.

If global alignments were the need of the hour, so was providing complete communication solutions to its clients. In 2005, Mudra launched Tribal DDB Worldwide to offer interactive solutions. Talking about Mudra’s sister concerns, Madhukar says, “We charted a path and metamorphosed the agency into a complete communication solution provider. We created Canvas Communications that is based in Ahmedabad and Interact Vision that handles smaller businesses. There is DDB Mudra here, which handles the J&J account.” Apart from these, Mudra, which is now over Rs.10 billion, has its media arm – OMS (Optimum Media Solutions) and a focussed communications services wing that has units like Rapp Collins India (direct response), Kidstuff Promos & Events (promotional marketing services), Primesite (outdoor) and Mudra Health & Lifestyle.

The year 2003 saw the launch of the very successful campaign for Reliance Infocomm (Kar lo duniya mutthi mein). Madhukar recalls the work done on Godrej Hair Dye, where the task at hand was to expand the market. He’s also extremely proud of the work done on SBI Debit Card last year, where the challenge was to create awareness. The outcome was an astonishing idea of welcoming the customer to a cashless world.

Vimal had an untimely death (though it is being revived now) and spunkier drinks have overshadowed the little girl who said, ‘I Love You Rasna’. Just like these brands, Mudra too has been overshadowed by the O&Ms and the Lowes. But, doesn’t it take guts to not give in to the many charms of an MNC and continuously fight tooth and nail to remain in the top ten? Yes, it does!

Edit Bureau: R. Prasad

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Driving into the ‘Year of India’!

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Peter Kronschnabel, President, BMW India, has stepped up the accelerator. And he has no intention of applying the brakes...

For decades, car aficionados globally have been irresistibly drawn to the panache, grandeur and sophistication that Bayerische Motoren Werke (in German) or Bavarian Motor Works (in English) represents. Confused? Well, the cars go by the popular sobriquet of BMW. Guess that resolves any question marks that mar your thinking. The auto-maker not just stands testimony to German engineering and sophistication (like Mercedes Benz does), but has surpassed that finishing line to become the answer for thousands who seek both elegance and performance. The last few months have been good for the world’s largest maker of premium cars; BMW’s US sales rose by 8.7%, while its global sales rose by 3% on the back of burgeoning demand for its 3-series convertible.

So, the last frontier really left for the German auto maker was to conquer the booming Indian auto market and over the last year, it focused on doing precisely that. BMW dashed ahead to first establish a sales subsidiary in Gurgaon last year, followed by a state of the art assembly plant for BMW 3 and 5 series (with an initial investment of Rs1 billion), which began operation in Chennai earlier this year. A booming economy (it grew at 9.4% in 2006-07), rising affluence and increasing demand for luxury cars (in 2005-06, 27,529 units were sold, whereas in 2006-07, a staggering 40,964 units were sold – a growth of almost 50%), are only a few reasons attributable to BMW worldwide declaring 2007 as its ‘Year of India’.

And this was the first thing affirmed by Peter Kronschnabel, President, BMW India, when he sat down for tête-à-tête with 4Ps B&M. Here to lead the ‘2007–Year of India– for BMW’ declaration made by his global CEO, Kronschnabel is quite optimistic about the unfolding scenario in Indian luxury car segment. “India has a strategic importance at BMW. The top end luxury car market in India is small, but it is growing at a brisk pace. It was 3,000 units last year and it is expected to become a 10,000 unit segment by 2010 – almost triple,” he opines. Small wonder that despite the low volumes in production and sales presently, the company is bullish about its future prospects here.

Born in Villingen, Germany in 1966, Kronschnabel began his association with BMW in 1995 as sales and marketing intern. His persistence and diligence first earned him the rise to the level of GM– Market Development – Region - Asia Pacific, Africa and Eastern Europe, and a few months ago, he arrived as President of the luxury car company in India. And Kronschnabel says that the vision of BMW in India is to be BIG! “An understanding of producing and retailing premium cars to the customers is very important from the entry level of the chain itself. It is a challenge, an effort to show that one can be successful in an on-going, long term process.” Having experienced different work cultures in numerous countries, the man draws out the differentiation for the indigenously Indian work culture and says. “In India, you work with well-skilled workers, motivated young people, who are at times over enthusiastic, but are able to come out with results, without having a plan in the first placel” he shares.

Since its inception in 1917, BMW has been phenomenally successful with the Mini, MG and Land Rover as its luxury mascots, with the present portfolio having model lines like the BMW 1, 3, 5, 6 and 7 Series, BMW X3, X5 and Z4, MINI (One, Cooper, Cooper S, Convertible) and the Rolls-Royce Phantom.

BMW is also seeking space for the future and is positive about launching its Mini series by 2009. Kronschnabel feels that the time is just right for its entry. The company’s Long term strategic approach in India involves launching the 5 series in June and promising exciting times ahead with launches of the X3 and X5. Even a few models from the world famous BMW Art Cars Collection will drive into India later this year. They hope to sell 1,200 units by year-end.

Kronschnabel also emphasizes on significance of launching diesel variations of BMW’s existent car models in the Indian market, which will increase and stabilize sales at a better level. The vision is to give the consumer a flexibility of choice, in the long run.

Boasting a global production network in 23 locations across 16 countries, BMW is gung-ho about the Chennai plant, and hopes that it will match the production capacity of its South Africa plant. “Nearly 50,000 cars are produced at the South African plant, set up in the 70s, of which 30,000 cars go for exports. We will try maintaining similar standards in India.”

Keen to develop a robust dealer network in India, Kronschnabel avers that BMW has even set clear and uniform standards for every dealership. “The experience with which the customers get the product and services is important and is what separates the company from its competitors,” he states. Talking of competitors, there are already quite a few in the Indian market, gearing up to spoil the BMW party, including hi-profile global brands like Mercedes, Audi, Bentley & Porsche. And as the man at the helm of BMW’s India ambitions, Kronschnabel may have tough days ahead, but surely not impossible to manage, especially when you are behind the wheels of the ultimate dream machine!

Edit bureau: Siddharth Nahata, Vantika Singh

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....
IIPM - Admission Procedure
Why Study Abroad When IIPM Gives You 3 global Advantages!
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