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Showing posts with label Arindam Chaudhuri. Show all posts
Showing posts with label Arindam Chaudhuri. Show all posts

Thursday, November 18, 2010

WATER MAFIAS, The 'W' company!

IIPM BBA MBA Institute: Student Notice Board

The water mafia now steals more than 50%

As darkness descends over Dharavi in Mumbai, a few local slum dwellers creep out of their shanties grasping steel ewers and plastic cans, scrambling over an iron railing fence across the railway lines to meet a crowd around a faucet in a desolate patch on the other side. The place is already burbling with an intense scuttle for water. The hitch? It’s basically the water mafia’s stolen water for sale — this particular faucet draws water from a water tank that belongs to Indian Railways! Such pilfering of water is going on for decades in our largest metropolis, as it struggles to quench the thirst of its ever growing population. Mumbai’s 19 million people demand 6,916 million litres a day; while the city’s limited capacity can provide only 2,900 million litres. The future looks really bleak as the city’s civic authority has warned that its primary water reservoirs have only 71 billion litres of water, enough only to last 200 days. It’s a wobbly situation as state government announced in December last year that water connection will not be provided to high-rise buildings until 2012. To tackle the misery, the state government is in a process to set up three new water reservoirs and a desalination plant. But these steps however, do not deal with the main problem of pilfering, because of which the city looses one-fifth of its water supply. The water mafia operating as commercial water tankers creates false scarcity to enhance their business in connivance with some Brihanmumbai Municipal Corporation (BMC) officials. In spite of BMC trying to curb the menace, stopping theft is easier said than done — as there is no one to monitor the fissures in the pipelines made by mafias and local leather factories for their business.

The scenario in Delhi is similar — as Delhi Jal Board (DJB) guarantees enough water for its residents — throwing open the question for the reason of scarcity, which in that case seems to be artificially created. It’s the stolen water meant for public usage that is sold back to them by the private operators. Delhi, as per official figures, has 220 litres viz. eleven buckets of water per capita per day — yet there is no accountability of 330 million gallons of water — the government says it loses 50 per cent of its water supply, but cannot explain how! After the loss, the government is left with 110 litres of water per capita per day — which is an absolute shocker!

It is a losing battle in almost every city to try and stop water mafia’s illegal extraction of water and supplying them at a soaring price. Taking out groundwater from their wells and trading it to tanker owners for Rs.100/ per load is a full time business for farmers in the outskirts of Chennai, so much so, that they have given up their original livelihood of agriculture. Is privatisation the answer? People like Alfredo Pascual of Asian Development Bank do think that the private sector “does have a valid role to play—not as the owner of water resources but in providing the much-needed expertise.” That seems to long in coming. For now, we have a parched throat.

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).

For More IIPM Info, Visit below mentioned IIPM articles.
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Wednesday, August 11, 2010

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.”

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).

For More IIPM Info, Visit below mentioned IIPM articles.
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IIPM - Admission Procedure
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Wednesday, February 11, 2009

Why Are Masscom Students Such Misfits In Ad-Land?!


Now IIPM's World-Class Education... for everybody!!

Monojit Lahiri probes this disturbing issue


They were the kids who were supposed to be the saviours of the attrition-hit adbiz; the god-sent answers to the galloping exodus of good people suddenly upping and leaving; the bright main-hoon-na brigade all charged to fill in the blanks rendered by the defectors… but guess what? Eight times out of ten, they’ve turned up turnips; well-meaning disasters who didn’t seem to have a clue about the ‘real’ world! Agency and clients continue to crib about these kids “coming from another planet and totally out-of-sync with the ground realities that govern our business.” Shouldn’t the faculty and powers-that-are initiate them into what awaits them once they are out in the battlefield? Isn’t it their responsibility to get them as industry-ready and friendly as possible?

“Actually, its one of the great tragedies of our education system that we pay a pittance to teachers, compared to people in other disciplines in other sectors. Hence the institutes – exceptions apart – attract a lot who have practically no industry experience or people who are not good enough to be absorbed in the mainstream and find it convenient to hide out as faculty in these joints.” That was Santosh Desai, the high-profile CEO of Future Brands. He is of the firm opinion that communication is a far richer, purer discipline than marketing [which borrows heavily from other empirical sciences] and at best is nothing more than a makeshift science. “The atmosphere and environment – for example – that prevails in an advertising agency with its unique work culture, demands and expectations is an entire universe apart from a traditional, conventional workplace. The result is, frequently, there is zero-connect and near non-existent value-addition. For example, Advertising being an idea-led business, is there any focus regarding the critical aspect of how to form, shape, add value, reject or react to an idea?”

Motorola’s dynamic and articulate Marketing Director, Lloyd Mathias is up next. He believes that most traditional Masscom Institutes in the country, unfortunately, choose to be [comfortably] inward looking, still concentrating on old Case Studies from Harvard Business School. “In today’s day and age, this is totally irrelevant! They need to understand that if the kids have to go out and work in an Indian environment they ‘must’ necessarily connect with the Indian reality.” Mathias then goes on to make a strong case for the biggies, the movers n’ shakers – Omnicom, WPP, Publicis – to get together and arrive at a common solution where an environment/climate is created to allow for a more enlightened faculty and sharper, industry-friendly student community.

The new Golden Boy of Indian Advertising [the soft-spoken, low-profile Agnello Dias, JWT’s NCD, whose amazing Lead India campaign fetched India her first-ever Grand Prix at the recently concluded Cannes Ad fest] adds his own evolved input. He believes that Masscom – as a discipline – is a fluid science and has to be understood in that vein, from day one, by everyone engaged with it. “The problem with most schools and institutes is that the curriculum and syllabi seldom bears any connect with the present or future … it seems to be entrenched firmly in the past! The result is that while the jargons, terminology and catch-phrases are picked up, nothing that is truly relevant is. Why? Because even between the time they’ve done the exams, got their results and started looking out for jobs, the dynamics of the business could’ve changed … and where would that lead them?” Ivan Arthur, veteran, creative, heavyweight of JWT in the sixties, seventies and eighties rounds off this debate on a truly positive and meaningful note, offering solutions that everybody [including these distinguished practitioners] are looking out for. He points towards Walter Saldhana’s Aicar Business School in Neral, Maharashtra. Its an institute, which is pragmatic, rooted to ground realities, living in the here and now. It promotes learning-by-doing as its defining philosophy. “We set up an integrated communication agency in the campus that actually handle live accounts. Students are taught the processes and costs of acquiring and managing accounts. They also have to learn the pain of losing some of them. Clients pay the institute for the work done by students, of course with close and active supervision of the faculty and mentors, all experienced ad professionals. Clients include names like Eureka Forbes, IMS Learning, Old Spice, IL&FS and Aicar B-School itself. The practical experience is supported by robust classroom sessions, which deal with diverse subjects … world literature and mythology, aesthetics, semiotics and cultural anthropology. We believe that beyond being effective managers, they should be well-rounded human beings with those softer edges of refinement and sensitivity.”

Are you listening Santosh, Lloyd, Aggi and everyone out there?

Way to go, guys…!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Tuesday, February 03, 2009

If India has its brands, China has its infrastructural-prowess


IIPM Programme :- SUPERIOR COURSE CONTENTS

During a recent leisurely sojourn in Egypt, I was in no mood to roam around, suppressing my marauding instincts. However, as Cairo basked in the pleasantries of the Mediterranean Sun, I decided to give in to my vagaries of exploration. Already satisfied with the Egyptian heritage, the next stop was glitzy downtown Cairo and what better place to start than ‘The Omaha Endi Mall’, one of the most happening places around. Inside, I was greeted by the usual upmarket brands galore, but what surprised me was an unusual sight. In the middle of this brand hoopla, there was Lilliput, an Indian kids wear brand. With a conceited yet anxious mindset, I entered the corridors of the spanking showroom oozing those world class lines. As I waited there in awe, a mother and her three kids entered the shop and I could not help but ask their perception of Indian brands. “Well, I like the quality and clear cut fashion of the Made-in-India labels, Chinese brands are there too, but not that good to feel and wear,” said the prospective customer. This was no innocent answer to a direct question; it symbolised the choices of the African consumer and the power of Indian brand names.

Back home, the first thing I did was to meet the Egyptian Ambassador to enquire about the inside story behind the success of the Indian brands among Egyptian consumers. “If you consider India particularly, then India and Egypt have a strong link even thousands of years ago and this cultural legacy has helped Egypt become unique for India,” averred H. E. Dr. Mohamed Higazy, the Egyptian Ambassador to India. My curiosity awakened, I couldn’t restrict the story to India. Stealthily old neighbour China had found a place!

The first obvious question is that is the time really ripe to enter the so called ‘Dark Continent’? Traditionally, businesses in Africa have behaved like ‘caterpillars’ – uninteresting, slow moving and easy to step on. Conditions are still somewhat similar, but change is creeping in fast. “The place is still financially challenged, but it’s no doubt one of the hottest markets today. We had been in Africa for 10 years now and it’s definitely the next big market,” asserts Rajendra S. Pawar, Chairman, NIIT Technologies. Pawar is not alone. There are many of his ilk who feel that the continent has not only seen daylight, but that the sun is shining brighter each day. “Even Sub-Saharan countries are clocking growth rates of over 7% in the past years. Per capita income is also increasing. The time is ripe for Indian firms to invest in Africa,” adds V. Thatty, Deputy GM, International Operations, Bank of Baroda (the bank operates in Africa through a subsidiary arrangement). Some, however, are treading more cautiously. “The main problem we see is the lack of regulatory infrastructure in most African countries,” says Rahul Virkar, Spokesperson, ICICI Bank (International Operations). “We at present have our representative office in South Africa but in the near future,” he adds optimistically, “we may go for a wholly owned subsidiary there.”

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Wednesday, January 21, 2009

BINGEING IN BAD TIMES


IIPM Programme :- SUPERIOR COURSE CONTENTS

The downfall of global financial stalwarts like Lehman and Morgan Stanley have also unleashed a somewhat similar story for India’s darling ICICI (with malicious rumors playing their own part in the saga). Correspondingly, consumer confidence has also taken a dip (albeit slight!). Given the unfolding situation, analysts expect a tightening in the corporate spend for at least two quarters. An ICICI official, on conditions of anonymity, told this magazine that “In order to maintain the bottom line, it is prudent for the corporate (ICICI) to cut their expenses. Hence, cost cuts are happening through various alternatives and ad expense is a part of those alternatives.”

As a matter of fact, while it is prudent to curtail costs, corporate should look at the returns of ad spends in terms of top line and compare it to the costs of business losses if the marketing spends were not done to arrive at an alignment. Well there are few who do not buy this logic, for them it is not merely revenue but legacy which matters. A Coke spokesperson told 4Ps B&M, “In Coca-Cola we don’t exactly design every ad keeping in mind how much revenue it will generate as our policy is to sustain the legacy of the brand by promoting it through ads. So the exact ad expenditure is not necessarily directly linked to revenue.”

His words ring true, specially given the fact that even global experts have now started recommending more advertising during recession time, so that the brand makes the most of it when the economy recovers. For now, the only guys who seem to be in the safe zone are the (evergreen?) FMCG and (sunrise!) telecom sectors. As opposed to last year, FMCG major HUL increased its ad spend by 11.78% and correspondingly its sales improved by 13.24%. Similarly Dabur India improved its sales by 29.64% after increasing ad spends by 25.55%. Telecom major Bharti leads the list of the telecom players which increased its ad expenses by 40% and witnessed a 44% growth in its sales figure.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...


Saturday, January 10, 2009

White goods: A chimera?


IIPM - Admission Procedure

With perishables, FMCG and apparel markets already under their thumb, desi retailers have now begun to eye private labels even in high involvement categories like white goods. Analysts feel that creating a private label that would give sleepless nights to the market leaders in the category is difficult. The complication grows bigger because consumer durable majors (or at least some of them) are even setting up own retail outlets to sell their wares (Videocon has a target of $3billion turnover by 2013 from its retail venture). But does that mean that RPG Cellucom, which has created its own handset brand and Reliance Digital, which is planning similar, can never stand at the heel of LG, Samsung, Whirlpool and several of their ilk? Of course, creating a brand from scratch is relatively difficult for new-entrant retailers than is for let’s say Videocon, but “if priced low, boasting equivalent features and supported by excellent promotion, retailers can even grab market share from these players,” feels Paul Martin, Global Sales Manager, Planet Retail, UK.

In fact, analysts are raving about the Reliance way of creating private labels. Over the past two months, Raghu Pillai, President, Retail Operations & Strategy of Reliance Retail, has had his hands full putting in place some more hyper-marts, launching at least one private label across segments. “That’s going to match with the local taste or preferences, whichever community we are entering,” adds Pillai. Rising on the wave, yesteryears TV brand Salora is geared for a comeback. Having their own manufacturing hub enabled them to make LCD TVs and when they launched their retail arm - Terminal - in 2008, they promoted these as in-house brands. The chain is set to expand to 350 stores and is setting up sturdy distribution channels. But are people buying Salora LCDs, specially when Sony is also present in Terminal? “Yes! Our brand is priced lower than Sony and we offer same features and after sales service,” avers Sanjive Sethi, CEO, Salora Retail.

“The more developed and consolidated a market, the higher the penetration of private labels. Switzerland is the market, where private label dominates,” announces Martin and he believes that the more organised retail spreads in India, chances of in-store brands emerging as big brands get higher. Definitely a sunny indicator for Biyani, Ambani & Company. Reliance laptops and Future DVD players are still to see the light of the day, but the corporate retailer has begun to flex his muscles. The NCAER Report may have given organised retail a clean chit so far as millions of mom & pop stores are concerned, but HUL, P&G, Samsung, Raymonds, Levis, LG... you better watch your backs! The journey has only just begun.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...


Wednesday, January 07, 2009

Arrogance has killed many American brands… They once basked in their own pride, but today lie in coffins gifted by new-age brands.


When IIPM comes to education, never compromise

Walk up to a teenage coffee lover and ask him if the word ‘Brim’ strikes a familiar note. Don’t be surprised though if he gives you a wrinkled ‘what a weirdo!’ look. How on earth would he know what ‘Brim’ is?! Its ads had stopped flooding media machines decades back and the brand itself has been jettisoned from retailing ships for much over a long decade! Dead… and its memories just a ghost from the past! Move onto something cold – call it ‘Tab’. Remember the name? Don’t worry if you can’t, for it’s another one from the morgue. Tab was the predecessor of Coca-Cola’s current Diet Coke, but with time and lack of innovation in taste, it began to fizzle out. At present, the Tab formula lies inert in Coca-Cola’s labs, waiting for an American re-branding miracle...

These were just two ‘glorified’ brands which once basked in the American sun of glory, and were all set to capture global centre-stage. They lost their hue partly for lack of innovation and primarily because they were just too arrogant and obstinate to change, as Jeff Kagan, Telecom industry expert asserts, “American brands need to keep competitive threats in mind. Once successful American brands can stumble. They need to reinvent themselves...” What follows is an account of a few such ‘once great arrogant’ American brands that suffered from the very two reasons mentioned above, and are dying today.

Levi’s, which once ‘proudly’ swore to clothe the world with denim is a mirror image of what it was 24 years back when Robert Haas bought an almost dead brand and closed dozens of production units and subsidiaries, and brought the organisational ‘core’ focus back. Having taken the company semi-private a year later, he infused new life into the brand. Levi’s was a known brand again and its stock price was kicking, having risen from a mere $2.53 to a swashbuckling $265 in just a year! But with time, and for lack of consumer focus and customisation (its ‘One size fits all’ strategy), revenues and profits for the brand is drying quarter after quarter as a spokesperson confesses, “The mistake we made was to make one brand for everyone – it ended up being nothing to anyone.” In the past eleven years, the company has given the royal kick to 17,350 employees (including its CEO in 2007) and has put the locks on 33 factories across North America and Europe. What growth! So what led to this dangerous situation? While companies which focused on maximising wealth – like Honda, GE, Toyota, Unilever et al – rushed to low-cost Asia, Levi’s put it’s foot down to manufacturing products in America. It was too proud to allow its products to be manufactured in Third World geographies!!!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...


Friday, January 02, 2009

Prem Kamath, Vice President, Marketing & Communication


IIPM : EXECUTIVE EDUCATION

Prem Kamath, Vice President, Marketing & Communication, Star India agrees wholeheartedly and says that Star India has three different agencies for its various brands viz. O&M for Star Plus and Star Gold; JWT for Star One and Star Movies and even an on-site agency Bettercom to handle their BTL communication activities. “We (Star India) draw up our own communication strategy, do research and draw conclusions. Then agencies are called in and told – this is my communication plan – now give me a script to match this. And if you don’t give me a good script, I’ll simply ask another person to write me a script,” he explains, adding that having multiple agencies exacerbates the need to concentrate a majority of the communication strategy planning at the corporate HQs itself.

But if agencies are simply shops for churning out advertisements (for awards or otherwise!) - as they are now, sooner or later they are gonna be hit because declining advertising effectiveness, media clutter and changing consumer habits (thanks to disruptive technologies such as the Internet and TiVo), will make mass-media advertising redundant. This is already happening and is reflected in the fact that clients and their marketers have started taking more ownership of brand communication strategies.

In fact, over the last few years, most of the real, cutting-edge stuff – Surf, Idea, Airtel, Vodafone, Lead India, ICICI Prudential, Cadbury, Perfetti, Coke, Pepsi, et al – have come from a solid collaboration with the client, concurs BBDO’s Exec. Chairman, Josy Paul, “Ask Balki, Aggi, Prasoon or Piyush and they’ll all agree that marketing teams of these brands have contributed up-front, shown imagination and intelligence to make a difference.” Reliance Communication, one of the fastest-growing telcos in India and therefore understandably one of the largest advertisers is riding a similar horse. With three agencies on its panel – Mudra, Leo Burnett and Cartwheel, Sanjay Behl – Reliance Communications’ branding chief stresses that “more creative ideas emanating from multiple perspectives of different creative teams gives (them) a huge flexibility to choose the best rather than settle for the ordinary.” He admits that multiple agencies “raise the bar on creative quality.” In fact, sources in RCOM admit that nearly 80% of the advertising brief is now strategised by the in-house marketing team, while agencies work on just the balance 20%, read: executing the client brief. Admits Mahesh Chauhan, the strapping President of Rediffusion, “The agency game has not really evolved in India. We’ve become mere vendors of creative wares.”

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Monday, December 08, 2008

In’grain’ed forever


IIPM : EXECUTIVE EDUCATION

Move over equity markets, the era of commodity exchanges has just about begun in India, says Joseph Massey, CEO, MCX

In an exclusive interaction with 4Ps B&M, Joseph Massey, MD and CEO of MCX, talks about the past, present and future strategies of this commodity exchange. Excerpts:

4Ps B&M: What are the most popular commodities being traded by the Indians these days?
JM: There are whole lot of non-agri commodities like Gold, Silver, Copper, Crude Oil, zinc, etc. and agricultural commodities like Cardamom, Pepper, Ref. Soyoil, etc. that are most popular commodities being traded.

4Ps B&M: An IPO is due shortly. What preparations are on?
JM: Strengthening the processes, improving transparency, efforts to identify benchmark industry practices and following them are the major activities that are being undertaken by the exchange to cater to both the pre-and post-IPO requirements as this would remain the first issues of IPO by the company.

4Ps B&M: How have you cornered 75% of the comex pie?
JM: Our first challenge was to identify the right talent and make strategic tie ups to undo the 40 years of unlearning. So training was strategy number one. Secondly, we educated end users about micro details via intensive education for intermediaries, at management and agri business colleges. Then, of course we had the technology advantage as provided by our parent Financial Technologies, which specialises in applying technology to and establishing market places.

4Ps B&M: How has MCX’s timings (the exchange closes just before midnight) helped it to link with international markets?
JM: These commodities are global, so we decided to give prices for longer hours. We extended timings to gain European and US time advantage. Besides, we thought that actual users of size are going abroad, but SMEs are not following for lack of money or intermediaries. So we cross listed products on global exchanges that gave global efficiencies in the local market.

4Ps B&M: Are these exchanges actually benefiting farmers?
JM: Almost every farmer in the country is benefiting. If you make a good road in a village, every farmer benefits, though not all farmers drive cars. Knowing future prices in advance, benefits farmers both directly and indirectly. The farmer may still go to his traditional selling agent, but now he knows the price four months from now and bargains better. Second, post futures, it does not matter which villager is going to which intermediary but all these markets were acting as homogenous market, all aligned to a national price. This is a huge indirect benefit.

4Ps B&M: What’s the potential that you foresee?
JM: MCX and its intermediaries have invested about Rs.5,000 crore in building the marketplace. Our target is that in this new industry, 5 years from now, close to a million jobs can get created and almost Rs.25,000 crore of investment can be absorbed by this industry and its institutions. Exchanges globally are now moving from natural commodities and indices to synthetic instruments. MCX will trail a similar route.

4Ps B&M: Plans for retail investors?
JM: It has been statistically proven that when you introduce commodities in your portfolio, it gives better returns. Multiple options been given to the retail investor based on gold where they can come to futures market – invest in 1 kg gold, 100 gm bar or an 8 gm coin. But yes, they are not a significant percentage because the largest community on our platform is that of hedgers.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

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