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

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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…!

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Source : IIPM Editorial, 2008

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

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

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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.”

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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
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IIPM : EXECUTIVE EDUCATION
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BINGEING IN BAD TIMES

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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.

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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...

White goods: A chimera?

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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
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IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
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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...

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

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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...