Another few millions on their Integrated Marketing Campaigns, for the sake of building brand equities.

As far as forecasts are concerned, they certainly seem bright with SIAM further claiming that despite the cyclical changes in the industry and economy as a whole, production figures for the passenger vehicle segment have appreciated (CAGR) by a stunning 15.6% during the past five years, to touch 1.22 million units in 2008-09. So while on one hand, we have a great growth story being written down in terms of domestic production and consumption, on the other, we have the much honoured Indian auto brands going places, our exports having grown at a CAGR of 30% in the past seven years, crossing 331,500 units during 2009 alone. But there’s the rub: no Indian auto brand has been featured amongst those most valued by either Millward Brown or Interbrand/BusinessWeek. Does this mean that names like Maruti Suzuki India Ltd. or Tata Motors, that are relatively unrecognised when it comes to brand value amidst global names, have nothing to worry about when it comes to brand-related payoffs? Strangely, even though the Indian auto brands are having a roll in a market, which according to the International Yearbook of Industrial Statistics 2008 released by United Nations Industrial Development Organisation (UNIDO), is ranked 12th in the list of the world’s top 15 automakers, various global researches across sectors strongly prove how brand value does matter when it comes to shareholder wealth and other financial implications. Prof. Natalya Delcoure of the College of Business Administration of the Sam Houston State University proved through her paper titled, ‘Corporate branding and shareholders’ wealth’ how “Corporations that own superior brands exhibit higher profitability and create shareholders’ wealth independent of economic downturns.” Using statistical analysis, she proved how, “Strong brands appear to have lower market risk and deliver greater returns to shareholders compared to the relevant benchmark.” Another empirical work by Professors Thomas Madden, Frank Fehle & Susan Fournier of Harvard Business School titled, Brands Matter: An Empirical investigation, testifies how “strong-brand portfolios significantly outperformed the market.” Their calculations showed how while the portfolio of strong brands “yielded an average monthly return of 1.98%, during the same time period, the benchmark portfolio on average returned 1.34% per month while the one-month Treasury bill returned 0.42% per month.” Further on, a 2001 Ernst & Young study claimed how “corporate reputation accounted for upwards of 30% of a company’s stock price.” A study by JPMorgan (in association with Interbrand) concluded that “on average, brands account for more than one-third of shareholder value. Brands create significant value either as consumer or corporate brands or as a combination of both.” Various other studies by academicians from Harvard and the University of South California, published in the book titled ‘Brands and Branding’, indicate that “companies with strong brands outperform the market in respect of several indices. It has also been shown that a portfolio weighted by the brand values of the Best Global Brands performs significantly better than Morgan Stanley’s MSCI index and the American-focussed S&P 500 index.”

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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In 2010, there would be five new global brands entering India!

Viraj Bahl, former owner of Fun Foods

What potential do you see in the Indian convenience food market?
The potential is huge as convenience foods occupy the majority of the Indian retail market. This is what is motivating foreign players to enter into the Indian market. In 2010, there would be at least five new global brands.

Wouldn’t it be a threat for Indian cos?
Foreign players already existed in the Indian market and the competition for Indian players was always tough. But it’s necessary that either you enter into a category where no other players are present or you enter into a category where you create a proper positioning.

‘Create a proper positioning’? How?
It’s necessary that you have a USP, which is based on a proper utility function. We always wanted Fun Foods to be a one-stop-brand for food.

In the convenience food segment, which is the most lucrative space?
‘Ready to cook’ is the most lucrative space as the Indian market is not mature enough for the ‘ready to eat’ category. On the contrary, ‘ready to cook’ makes cooking much more convenient for today’s consumers; and hence it’s an easier way to attract consumers.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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IIPM enters into media education
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The King was called BRAND.

I think that every brand today is waking up to the new realities in this fast-changing world. Today’s competitive world asks for desperate measures. Local knowledge and quick responses are the need of the day. Gone are the days when one would apply the same formula of communication everywhere. People today differ by fraction and change by second. Aspirations change. Loyalties change. The need is to adapt quickly, talk to them in their own language but never waste a second. Because every moment you waste is going to cost. And the cost is your future.

Multinationals have one advantage. They are big. But that is their disadvantage too. They are too big to be flexible, and too big to understand the need for it. They come with a set format and style of working and with a lot of red tape (although many would debate it). They take time to react.

And that is where we are making a difference! The need is there for a free-thinking, independent and flexible communication services provider who understands and adapts quickly to the fast changing needs of the brand. It’s the age of information technology and several new mediums are in the offing. We have been offering new age solutions targeting the audience of today, in their language and at their speed. And if I may say so, quite successfully.

The change is there in the attitude and approach of the clients today. They have realized the importance of independent thinking. The dynamism, the chaos and the spark needed in this otherwise product parity market can only come from breaking away from the obvious. It has to come from someone who is ready to take a challenge; someone who is ready to take a chance. And companies like us are doing our best to provide that free-spirited fervor, adapting ourselves for the consumers, and hence clients, of today.

The fight with the multinationals is actually not there. Because brands – both big and small – today have understood the benefits of dynamic, independent, quick and flexible communication agencies, who are ready to change and who are ready to adapt. It’s quite natural that Darwin’s theory of adaptation would work everywhere. Right?

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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Is this it?

Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri

If numbers were any indicator, then certainly the aura of the king of pops, Michael Jackson just refuses to die. The 112-minute film, This Is It (documentary shot out of Jackson’s rehearsals for his comeback concert) has exceeded expectations; the sales figure of $101 million worldwide in the very first week is simply mind-boggling with fans packing theatres across borders. However, released in India on October 28 in at least 150 theatres (as a strategic move to combat Aladin & London Dreams), the movie has not replicated its global success in home market. Ticket sales though encouraging have not been as expected with estimates suggesting only 2,000 tickets sold initially. Blame it on the online ticket sales for the predicament, but given that Indian moviegoers still prefer counter sales, Sony Pictures Entertainment can expect the sales number to surge.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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R. K. LAXMAN MATTERS...

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Aam Aadmi (Common Man)
For more than five decades, the celebrated cartoonist has immortalised the common man in a manner no political party or personality has been able to do. Sure, all parties and brands profess deep love and concern for the common man. But again, in what can only be termed as a political and marketing masterstroke, United Progressive Alliance (UPA) Chairperson, Sonia Gandhi and Prime Minister, Manmohan Singh have actually convinced a majority of Indian voters that the Congress is genuinely concerned about the welfare of the aam aadmi – the person who actually (and always!) votes during elections in the forlorn hope that things will change for better. Sure, towering Congress leaders like Indira Gandhi did try to fuse the Congress with the aam aadmi with catchy slogans like Garibi Hatao. But it is this dispensation that has actually walked the talk with numerous schemes that actually work to make life a little better for the poor in India.

If intention was half the work done, the latest Congress government has already done wonders for the aam aadmi. But then, this is the government and in reality, things like inflation, corruption, terror and poor infrastructure still rankle a lot of Indians. The real marketing coup, however, for both Gandhi and Singh is that the political Indian consumer (voter) very well knows that the product she is getting right now is still not great; she is still happy because the supplier is trying damn hard!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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Destination Europe

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They say, “a lot can happen over a coffee” and it seems that they really mean it. After pleasing the taste buds of Indian coffee lovers, the home grown coffee major Café Coffee Day (CCD – from the stable of Amalgamated Bean Company Ltd.) is all set to entice coffee aficionados in the European market. With an aim to attain revenue of $1 billon by 2015, the Rs.750 crore chain is planning to roll out 50 stores in Europe and Middle East by the end of this fiscal. In fact, CCD plans to open as many as 12 stores in Prague, the capital of Czech Republic. But the real question is – How will this mass coffee brand from India establish itself in a continent where premium players like illy, Starbucks, et al, are present? Is the rich legacy of Indian coffee enough to entice them? “We already have been exporting to these countries, so we are aware about the market. But we know that it will take us time to capture the market and as such we are not expecting profit from day one,” avers Alok Gupta, Director, CCD. Further, as a part of its global strategy, the company has already unleashed a new premium brand – Coffee Day Square. The 2,500 sq. ft. gigantic lounge offers ‘single-origin’ coffee. In fact, the group is cashing in on such positioning to cajole the global customer. Who knows the charm of ‘single-origin’ coffee could work for them!

Angshuman Paul

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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ESPN Star Sports is betting big on its agressive marketing strategies. But will the payback be worth the pain?

Pawan Chabra bowls hard at the re-branded batsmen...

First came the change in logo. Then a change in programming happened. And now, after much ado about re-branding, ESPN Star Sports (ESS) has set the Indian towns bustling with its marketing acts, as Nirmal Dayani, Senior Director – Marketing, ESPN India puts it, “ESPN Star Sports has undergone a lot more than just rebranding, as we not only changed our logo, but the programming and graphics as well. So now, when the consumer is looking at a whole new channel, we are undertaking 360-degree marketing tasks.” An on-field evaluation also clearly suggests how the company has come up with aggressive media campaigns, for its long line-up of tournaments – the erstwhile Champions Trophy 2009, Champions league 2009, Formula One Grand Prix, Barclays Premier League et al. Media experts suggest that the company has sidelined a massive Rs.100 crore for its media strategy. So while on one end you’d expect to run into ESS hoardings and billboards, being hit by witty radio jockey dialogues and gazing at the 30-second flicks on the idiot-box, on the other, the truth is that the capital earmarked is not simply for pure advertising purposes. Even Dayani confirms that as he avers, “A larger chunk of the planned media investment will be used for developing the Champions League format, as it is relatively new for the viewer and will take some time to gain momentum.” So there goes the tale – a fresh new sports channel, with fresh content and logo. But there’s the rub, a fundamental question mark rather – was rebranding even required in the first place?

An aggressive Dayani shoots back: “There is always a scope for improvement and the ‘new look’ channel will definitely offer some new experience to the Indian consumers...” He also quickly doubles up and mentions that “If Tiger Woods can reinvent his swing after winning so many tournaments, there is ample scope for the channel to improve too.” More importantly, the company has chosen the busiest of periods to rebrand itself. Of course, while timing it during the onset of a season filled with tournaments – which, of course attract guaranteed footfalls, eyeballs, sportstars and most importantly brands – is ideal, the festive season will make it a more fruitful investment as Manu Sawhney, Managing Director, ESS asserts, “With so many exciting sports properties currently being broadcasted on our channels, the new branding for ESS and the refreshed on-air presentations for the brand will enthuse and exhilarate sports fans and continue our strong and enduring association with them.” Surely, sports is a visual spectacle and ESS’ on-air packages aim to enhance this experience by communicating in the well-synchronised, dynamic and energetic language of sports, while the channel brands promise to reach viewers across all demographies.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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After leveraging the Titan brand equity for long, Fastrack is taking its first baby steps into the accessory market.

Angshuman Paul gives an account of the ‘watch maker’ turned ‘accessory giant’, for whom time was once running out real fast...

“We would be soon launching jewellery, helmets and footwear… We want to evolve as a ‘complete’ accessory brand that envelops the youth and we are trying to rise above the ‘serious’ brand image of Titan,” announces Ronnie Talati, VP & Business Head, Fastrack & New Brands, while discussing the current and future plans for building the Fastrack brand in the country.

Surprising though that today Fastrack wants to grow as an independent superbrand, while when we all believed that Fastrack lay snugly in the lap of the Titan brand! And this independent vision is not just when it comes to the future of the brand, for even physically the fact is more than just evident. Walk into the Titan Head Office, on the sixth-floor of the Golden Enclave Tower in Bangalore and notice the manner in which the floor is divided into two separate departments - on the right, sits the Titan team, while on the left it’s the young and enthusiastic Fastrack team. So there’s the question – why a separate brand now? Truth is, it has always been isolated, unlike what many perceived it to be. Fastrack was always positioned in a manner so as to benefit from the huge brand equity of Titan, yet remain a flagship purple cow on a standalone basis. It was born after Titan ended its joint-venture with US based Timex, a decade back. Therefore to fill up the lacunae of a cool, trendy and sporty product, the Tatas created Fastrack.

From its early days, the positioning of Fastrack was made clear – it was meant for the ‘early jobbers’ & young college goers. Therefore, the price was kept comparatively lower than Titan products. “We wanted a different brand and it had to be very trendy and sporty; that’s what Fastrack was meant to be,” avers a time-conscious Talati of Fastrack. Easy on the pocket pricing, with a slogan like ‘Cool Watches from Titan’ and brand ambassadors like Narain Karthikeyan, Fastrack started beckoning young consumers, who were otherwise being drawn by its competitor, Timex.

Ten years since it hit market shelves, Titan has actually emerged as a brand which doesn’t need the brand name of the Tatas anymore. Cashing in on the brand legacy of Titan and tying-up with MTV helped Fastrack gain a speedy start from year one, grossing Rs.15 crore during FY1998. And that was just the start of a high-growth story. “By FY2001, the brand had grown by more than 20% y-o-y, and had collected Rs.25 crore in revenue by then,” announces Talati.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The monk who started his ferrari

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So is it all a tale of making the most of the first mover advantage terminology? Perhaps not. For till date, there have been quite a few that have taken a plunge in this ‘seeming’ blue-ocean. MyTVS from the TVS Group’s stable, Mahindra FirstChoice (a joint venture between ICICI Bank and Mahindra & Mahindra) and Mukesh Ambani’s Reliance AutoZone are names that represent similar formats that were launched much earlier. So what is so unique about Khattar’s model? One word - scale! All the other aforementioned names missed out on achieving nationwide presence and were therefore just restricted to a particular geographical region. For example MyTVS operates in about 5 southern states while Reliance AutoZone operates in just three metros. So, what comes first for Khattar – offering diversified services or increasing reach? Khattar is targeting more states before he provides varied services through Carnation.

When it comes to generating a decent initial response, the company has been involved in quite a number of Below-The-Line activities, than opt for high-priced media vehicles like TVCs or print campaigns, as Khattar explains, “Being a start-up, we chose mediums that were suitable for the needs of the business rather than making expensive choices...” Talking about diversifying its service offerings, Carnation also recently announced the launch of its first used car sales facility at Mumbai, which was in the pilot stage for the past two months. So there you are – three businesses already; how many more on Khattar’s mind, remains the question.

Carnation has of late also ventured into the insurance business, and its operation includes renewal of expiring insurance policies. “We have just started with the insurance business and as the number of locations increase, the vertical will gradually build up,” added Khattar. Apart from this, the company also has plans of starting an in-house accessory and spare parts brand. When asked about the revenue targets, Deepak Singhal, Group CFO, Carnation avers, “We are targeting revenues of Rs.75 crore for FY2010...” He also revealed that Carnation “expects to break even by Q3, FY2010-11.” However Khattar is not very optimistic about the break-even coming soon as he opines, “When you expand at such a speed, being a start-up, the break even point automatically gets stretched.” Yes, he is no oblivious to competitive threats [“You will see a lot more players entering this arena going forward,” he remarks], but looks like the company which has already raised Rs.108 crore from investors like Azim Premji (Rs.70 crore) and IFCI Ventures (Rs.28 crore), and is planning to raise an additional Rs.170 crore primarily by way of debt funding from banks is in for a big surprise to competitors. Well, if investment plans are anything to go by, Khattar surely has his hands on the wheel. Yes, risk there is, but can you name a successful entrepreneur who never treads the double-edged path of risk and return? Khattar is no novice, and his Carnation is set to re-write the rules of the auto-service industry!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
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At ADAG, the ranking of three on our most valued brand rank doesn’t go down easily: number one would have been better

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That Anil Ambani understands India too well, was never a disputed fact. But whether this understanding would have translated into profitable propositions for his business enterprises, was a debate that had been raging much before its time. It was under such challenging times three years ago that Anil Ambani had launched the Reliance ‘Anil Dhirubhai Ambani Group’ brand on the platform of “Think Bigger. Think Better.” And in this short span of time, this brand – with the help of high consumer interaction businesses like Reliance Communications (RCOM), Reliance Capital, Reliance Infrastructure, Reliance Power, Reliance Natural Resources and Reliance Big Entertainment – now finds itself standing amongst some of the most formidable names in the industry, having been awarded a commendable rank of three.

Interestingly, the economic slowdown has in fact played to their advantage, at least in the brand quarters. Girish Shah, Brand Director of ADAG, while talking to 4Ps B&M, gives the credit purely to ADAG’s targeted brand building exercises, “It is in these challenging times [of slowdown] that strong brands outperform through various innovations at the product and brand level. With the largest family of 12 million shareholders and 150 million consumers, it was imperative to strengthen both investor and consumer confidence through strategic branding programs.”

One factor that has surely helped is that a few of ADAG’s businesses have necessitated extremely high levels of consumer interaction. One example being RCOM, which got its fair share to the visibility kitty by not only launching a nationwide GSM service along with its existing CDMA technology, but also by roping in Hrithik Roshan as the brand ambassador. Did this create the emotional connect that RCOM was attempting with its customers? If one sees the record breaking 15 million subscribers RCOM added in just three months of the roll out, the answer surely comes out hugely in the affirmative.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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Future Perfect?

Why Study Abroad When IIPM Gives You 3 global Advantages!

Being the first mover is not enough, one has to constantly innovate to remain relevant. Kishore Biyani swears by this...

“Whenever you enter Pantaloon or Big Bazaar, the first thing that attracts you is their sprawling display. Many in India are now copying Biyani’s ideas. His value for money proposition has worked wonders,” avers Aninda Datta, Financial Manager, Seagram India. And he’s not merely sermonising. We actually met and spoke with him, even as he was shopping in one of the many Pantaloon stores in Delhi. Aninda has seemingly read and re-read Biyani’s life story, as laid out in his book It happened in India; the impact is obvious in Aninda’s almost reverential awe of Biyani’s middle class roots. “Coming from a modest family Biyani understands the price-consious consumer and that’s his flank against the giants,” he says.

You too may have read Biyani’s straight from the heart diatribe (his autobiography) or you may be lining up (with obvious fatigue) to buy groceries at Big Bazaar every month or simply have logged on at futurebazaar.com to avail the lowest prices everyday. Truth is that this fashion to food desi retailer simply cannot be ignored. Sure, a host of biggies have entered the retail space recently, including the Ambanis, Tatas and several of their ilk, but early bird Biyani, is the one reaping benefits of this unprecendented expansion. The retail king admits that his group’s core competency lies in knowing the Indian customer. “Addressing their needs and wants, we have nurtured a long-term relationship with consumers. I think that that’s how we have gradually become one of the admired companies in India,” Biyani told 4Ps B&M.

Tall words these, especially coming from a man who is only now being exposed to a virtual cornucopia of competant competition. But one look at Biyani’s competition-warding strategies over the last one year and you realise that this man is no humble simpleton. In 2007, Biyani added oodles of innovation to his retail ventures. There’s the gigantic 125,000 square feet store in NCR – ‘HomeTown’ – that has ushered in a unique “home making” retail initiative by the group. Then again, he made an ambitious foray into financial services under the banner of ‘Future Capital’ – with a bid to extend credit facilities to consumers, a first by any retailer.

“If you have to survive in the retail industry you have to address all needs of consumers. The more needs you cater to, more you are ahead of competition,” explains Damodar Mall, President-Food Business Division of Pantaloon Retail India Ltd (PRIL), the flagship company of Future Group. Certainly not a hollow boast! The Big Boys of retail, at least for now, are trailing trends set by Future Group. More recently, Reliance Retail is reportedly trying out the Future Capital model, to provide end-to-end services to consumers. Not to be left out from cashing-in on the ‘private labels’ business, Biyani has roped in ace marketer Santosh Desai to create a slew of brands from fashion to consumer durables. The initiative, called Future Brands, is slated to become the next big revenue earner for Future Group.


What’s more, while Mukesh Ambani’s big budget grocery retailing dream is facing stiff opposition from the trader lobbies, Biyani’s slow and steady approach with his Food Bazaar, is instead proving to be a torch bearer in the segment. Biyani test-marketed the concept for five years (under the Big Bazaar banner) and only recently has begun rolling out stand alone Food Bazaar outlets. “Its slow & comparatively small investment policy in the initial phase, has made PRIL win its stake holders and specially investors trust,” feels Gibson G Vedamani, CEO, Retailers Association of India. The group plans to roll out 8 such stores (at the rate of Rs.20crore each) across the country and is targeting a revenue of Rs.300 crore in the first year of operations. KPMG extrapolates that food retailing will grow at 9.2% for the next five years against a total GDP growth rate of 7%. At a time when the world’s largest retailer Wal-Mart is all set to prop up its first store in food retailing in India by 2008, Biyani’s overtures have come at the right time. The company may also launch its IPO in 2008 (now only PRIL is listed), and India’s retail rajah is all set to take the retail mart by surprise.

There’s more! Future Group is planning to set up 1,500 new format fair price shops, which the management claims will be selling the leading brands (over 300 products), almost 10% cheaper than the market price. Even local brands will find favour at these outlets, purportedly selling at a 20% discount. Are the Subhiksha’s and the Wal-Mart’s ready for this fresh Biyani onslaught?


Written by Angshuman Paul, with inputs from Ratanlal Bhagat

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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With its pioneering Reverse Osmosis technology, Kent RO Sytems marches ahead in a purified way...

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She still has the power to charm millions. And when this age-old beauty comes on the screen flanked by her two sensual daughters, millions of heart start fluttering. Any guesses? We’re talking about ‘Dream girl’ Hema Malini and her daughters Esha & Ahana, looking gorgeous while endorsing Kent Mineral RO Systems, a major player in the Rs.700 crore water-purifying sector. A challenger to market leader, Aquaguard from Eureka Forbes, the brand was launched in 1995 by an IITian Mahesh Gupta. Positioned as a premium brand, the company through its pioneering Reverse Osmosis (RO) technology hasbeen successful in breaking the barrier of the generic ‘Aquaguard’ water purifier.

Speaking to 4Ps B&M, Mahesh Gupta, Managing Director, Kent RO Systems, says, “We’d to go through a process of educating the customers, stating that we’ve a product that has superior technology.” Kent RO water purifier was declared the ‘Best Domestic Water Purifier’ for 2006-07 by UNESCO, in association with water digest. It also bagged the ‘Golden Peacock Eco Innovation Award 2007’ in the healthcare and FMCG segment.

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An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Pamela Mountbatten Hicks’ marketing funda...

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It is amusing how we, as a nation, love to sit in judgment. Judgement on people, their actions, their choices, with nary a thought for the complete picture or the circumstances that may have been. This self proclaimed righteousness has turned us into a laughing stock, sometimes arousing head shaking disbelief and even disgust in right thinking individuals.

I am not exaggerating. This low tolerance of individuality has flamed passions beyond belief and many lives have been lost in sheer hatred. Don’t believe me? Pick up any newspaper and there is bound to be a story of how a couple were either lynched or burnt alive or sent to their graves in worse ways simply because they refused to comply with the diktats of medieval thought. Armies of hooligans or “keepers of society” harass anyone at will. Moral policing abounds. We’ve become a nation of peeping toms. Gossip rules and we chomp on juicy titbits at parties till the next one arrives.

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Complete from a technology innovator to a technology developer.

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And while the fiscal gone by played a big role in Moser Baer’s diversification initiatives, the company also consolidated its leadership position in the global optical media industry. It became the first in the world to market next generation HD DVD media; developed its own unique technology for Blu-ray formats; besides acquiring OM&T (a former R&D subsidiary of Philips BV); making its transition complete from a technology innovator to a technology developer.

However, there is a multi-billion dollar question that begs an answer. A presence in multiple businesses having high growth and return on invested capital would surely reflect negatively on Moser Baer’s profitability (at least till the returns start flowing in). Plus there is the added question of how would the huge funding requirements be met? As all these new businesses are in investment phase, a large investment of funds is required to turn these emerging stars into cash cows. All this, is likely to create a burden on the company’s balance sheet if not managed properly, amid global pricing pressures.

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PEPSI

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This brand captured hearts, no sooner did it whiz into India with its ‘choice of the young generation’ campaign

This brand has had a happy run in India, what with brand ambassadors comprising the who’s who of Bollywood and cricketers? But recent events have not been so happy for this cola major. First the pesticide debacle happened, and was closely followed with their highly betted-on Men in Blue facing a shameful exit in the cricket World Cup stakes. Ooh Aah India fell on its face, but did PepsiCo crumble? No way! The company bounced back with a happier projection for the next World Cup... seen their Pepsi Gold ad featuring kids vouching for 2011 World Cup? “We were confident about the advertisement’s success as we knew that the idea was different and there were less chances of it backfiring,” says Shoumitra Rai Chaudhary, Creative Director, JWT. And sure enough, the cola major has bounced back. It may have slipped thirteen places since last year, to hold Rank 32 in this year’s rankings, but let’s just pass it off as a rough patch in its brand life-cycle. For isn’t it true that hard times test the true character of a person? And Pepsi’s no small a celebrity, right? Yeh Dil definitely maange more!

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Source : IIPM Editorial, 2008

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

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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

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Source : IIPM Editorial, 2008

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

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