Give and you will receive

There was a time when capitalism meant making profits, philanthropy be damned. But times, they are a changin’...and how!

This is an area which is not new to Indian business houses. Long before Bill Gates, Microsoft’s Chairman committed millions of dollars for various social causes, Jamshetji Tata and his family have been following the principle of “give back to the people what you have earned from them.” Back then charity was a headache – something that the government was supposed to do. Yet the Tatas worked tirelessly towards the upliftment of the community. They were the first ones to think of Maternity Benefits and got it enforced as a law in 1946. In 2004, they spent Rs.45 crores on social service. Small surprise that India’s most loved and respected corporate house is Tata.

Today, a lot many corporates are understanding the positives of being socially active. Bajaj believes in the teachings of the world’s greatest leader – Gandhi. They have instituated the Jamnalal Bajaj Awards which are given every year to people following the Mahatma’s principles. Not just this, Bajaj Electricals has developed special lighting equipment keeping in mind the people at the bottom of the pyramid. At the World Economic Forum in Davos, myriad corporates stressed that these initiatives were today becoming mandatory for survival, giving them a cutting edge over other brands in the market.

Payback time

Corporates are realising that its now time to give back to the people who have worked for them and bought from them. The soda companies have for long been blamed for encouraging unhealthy eating habits & child obesity. Last year, Pepsi decided to do something about it. They launched the PepsiCo S.M.A.R.T programme whose aim was to provide a great place to play within walking distance of every child in America.

ITC of India has become a water positive corporation (recycling water from waste) through its agro forestry programmes. The company has made about 30,000 hectares of wasteland cultivable and planted over 10 crore saplings. Its chairman Y.C. Deveshwar is committed to making his company a ‘zero solid waste’ organisation with the help of recycling techniques.

A large number of corporates are today fighting a lot of these social and environmental problems and taking on collective responsibility. They want a sustainable development which takes care of them and their consumers. Today CSR (Corporate Social Responsibility) has become an important reputation measurement for a company. Maruti changed the lives of million of Indians by providing them an affordable car. It made their dreams come true. Today it’s a company close to the heart of millions in India.

Not just marketing

The home page of Tata Motors website says “We Care”. ITC has launched a “Sunfeast Hara Banao” campaign to make children more environmentally alert, by using less measure of plastic bags, helping make a “Butterfly Garden” and many more such initiatives. P&G has realised that today’s mother values education more than anything else. So it launched a “Shiksha – Secure Your Child’s future” programme. You could now buy any of P&G products like Vicks, Whisper, Ariel, Tide, Head & Shoulders & Pantene and win either Rs.2 lakhs toward graduate education fee of one child or Rs.50,000 as one year tuition fee of a child. P&G wanted to show that it did not only make great products but wanted to improve the life of its consumers too. A novel way to build brand loyalty.

Nestlé came out with a “Stick of Hope” where ice-cream lovers could write a few words of inspiration, a favourite joke on a virtual pop-stick. For every message Nestlé would contribute 25 cents to the City of Hope Cancer Centre to help children with cancer. Banana Republic started a “Drop your pants” campaign where you could donate your gently worn cast-offs. They got an incentive to clean out their closets and felt good about helping someone.

MAC cosmetics does various programmes to benefit children with AIDS. Its “kids for kids” programme sells greeting cards made by children and the proceeds go to benefit children with HIV/AIDS.

Cause marketing campaigns are today transforming the market. Everyone admires and expects from them. After all if you want to grow consistently and be loved by all, you gotta follow the golden rule – give and you will receive!

Copyright © :-Rajita chaudhuri and Planman Media

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

FIRST AIN’T GOOD ENOUGH

For those who thought that the first mover advantage is the real thing, here comes a sensational eye opener...

If there was one launch that the entire world had been waiting for with bated breath, it was for the iPhone! Its been one of the most well planned launches in the history of marketing. By deliberately giving scant information about the product, they raised the excitement level to an unprecedented height, with frenzied fans waiting endlessly just to catch a glimpse of the coveted product. Not surprisingly, iPhone created a record by selling 2,70,000 devices, just within the first two days of its launch. Yet, analysts predict that the success run may not sustain. Competition has already begun to work frantically on phones that will look and sound like the iPhone and probably be much cheaper too.

Conventional business wisdom says, being first in the market allows you to set standards. In addition, you can gain economies of scale, get the consumers hooked on to your brand and gain market leadership. But reality is not all that simple. If you thought Hotmail was the first company to offer free e-mail; Amazon was the first to sell books online; eBay was the first auction site; or that Starbucks was the first to start a coffee shop, you could not be more wrong. Instead Juno was the first to offer free e-mail; Books.com was the first online book store (launched in 1996) and Peets was the first to launch the concept of a coffee shop.


Being first is not enough

The brands mentioned above were first movers in the category, yet the world does not remember them. It’s not enough to be the first mover in any segment. It’s not enough to innovate something new and introduce it in the market. Just doing that cannot guarantee you success in the long run. After all it was Robert Fulton who invented the steamboat, but Cornelius Vanderbilt was the one who ran off with the shipping business. Atari created the videogame industry. Some say if it wasn’t for Atari there wouldn’t be a videogame industry or a reason to have a computer on your desktop (in those days – 1980’s – people bought computers to play games). Today, the industry is defunct.

Not that being first does not have its advantages. Consider Coca-Cola – the first mover in the soft drink category. Pepsi is still struggling to fight “the real thing”. Similarly, Hoover was a first in vacuum cleaners. Henry Ford was the first to invent the automated assembly line, which gave him an edge over the competitors. But look closely and you realise that being first does not guarantee automatic success. Silicon Valley is proof to this. During the dotcom mania, the first-movers were the ones with the unique idea, who got all the venture capital, but it didn’t take long for the bubble to burst. Many burnt their fingers pretty bad.

First movers or first losers

Bill Gates didn’t develop the original DOS, he bought the programme from Seattle Computers Works for $50,000. Bill Gates is more a marketing genius than an innovator. It was his great understanding of the market that helped him keep a strong grasp on his market share.

After all, it was not Microsoft Internet Explorer that was the first web browser – it was Mosaic. You need to think fast, you need to adapt quickly to the changing consumer needs and you need to mould your brand constantly. The one who is the fastest, will survive and win. Intuit was faster than Microsoft and today it’s beaten it at its own game. Intuit’s Quiken beat MicrosoftMoney, its QuickBooks beat MicrosoftProfit – and come to think of it, Intuit was the 47th mover in its category!

There’s more. Dell was not the first to invent Personal Computers. It was a company called Osborne. Dell just showed the world a new and innovative way of marketing them and succeeded. Gillette didn’t hesitate to develop Mach 3 which would kill off its own product Sensor Excel, which was a highly profitable product. Cannibalising your own product is a tough call to take, but that’s what survivors are made of – they don’t fall in love with their old inventions, they move on.

Overnight delivery was not a new concept but FedEx gave a whole new meaning to it. The US Postal Service is still reeling from that one. The automobile industry in the 50’s and 60’s was in an enviable position. However, during the 70’s oil crisis, consumers demanded smaller fuel-efficient vehicles and only those who stood up and took notice reaped rich dividends. No wonder, Japanese auto-makers easily captured the US car market.


There is no guarantee of continued market dominance where technological innovation is possible. If you need to survive you need to keep innovating and changing. It’s not necessary to discover something new. You just need to be alert about the best practices and incorporate them. “Shamelessly copy best practices,” says Jack Welch. That’s innovation for you. Throughout its history, Japan excelled at finding the best the world had to offer and then adapted and improved it. It is this that accounted for its stunning economic growth between 1945 and 1985.

Just being a pioneer is no big deal. Nearly 47% of all market pioneers fail. Chucks invented the disposable diapers, yet it’s Pampers (of P&G) which is the leader. It was not Coke or Pepsi that invented the diet cola but a company called Royal Crown Cola. Ericsson was the first mover in the mobile market, but Nokia realised that it was design which appealed more to the consumers. Nokia leads the mobile phone market today. Similarly, Matsushita has always got a piggy ride on other firm’s inventions (like Sony), rarely inventing anything new. It just identifies the winning products, makes them and markets them well.

So if you have not been the first mover or have nor been able to invent something new, don’t worry. Gillette didn’t invent the safety razer, it was a company called Star! Gillette marketed it brilliantly. In fact iPhone is not as good as the original called IBM Simon which was priced at $900 back in 1994 and had most of the features found in today’s smart phones. In fact its buttonless touch screen interface was better than iPhones. Yet, the IBM Simon flopped.

History is proof that it’s not the largest, strongest or fastest that survive, but the ones who are ready to adapt. And sometimes it’s actually good to be the second best. As Avis once stated in its ads “We are No. 2, that’s why we try harder.”

Spot a winning product, a winning trend, keep an eye on customers needs, be flexible and don’t sit on your initial successes, for competitors are always keeping an eagle eye on you. Keep moving, try a lot of things, but keep only those that work and quickly discard those that don’t. Henry Ford once said “I believe, the best strategy is to be the first person to be second.” After all, first ain’t always good enough!

Copyright © :-Rajita chaudhuri and Planman Media

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

Pint Size-Power House

They’re tiny and therefore not as obvious. But they are certainly not to be overlooked. Here’s a peek into logo-power!

Hewlett-Packard (HP) recently unveiled the new Compaq logo in Shanghai. In 2002, HP acquired its rival Compaq, creating a lot of controversy both inside and outside the company, one that had even cost its CEO Carly Fiorina her job. After 5 Years HP has finally found a good use of the logo. In fact, revival and up gradation of the Compaq logo is a part of the group’s strategy to help recover its lost market share. HP is using Compaq to protect itself from competitors nipping away at the low-end market; HP is being promoted as a premium top-end brand, while Compaq would be promoted as the simple and affordable PC. This way HP is ensuring that its price-sensitive consumers don’t deflect to Dell or Toshiba.

What’s interesting is, although customers won’t see the new Compaq products for months, but from 2005 onwards the company has been working hard to make people understand the difference between the product offerings of HP & Compaq, by marketing them differently and aggressively making the two logos, visibily distinct.

Logos give a brand its identity. They are a company’s most valuable asset. It’s no secret that a whole lot of Fortune 500 companies devote millions of dollars each year to develop their brands and promote their corporate identity. In fact, logos are what instantly make a brand recognisable. They make a brand memorable. According to some, the five interlocking rings of the Olympic Games is the most recognisable logo.

Logos also have tremendous impact. In 1974, Milton Glaser produced a logo (at his Manhattan studio), which has today become the most frequently imitated logo design in human history. IYNY (I love New York) has probably changed the way people express their love! Another popular logo – FedEx – was designed by Walter Lander. Observe the logo carefully and you would spot an arrow hidden between the ‘E’ and the ‘x’. It was meant to signify speed. After shortening the name from Federal Express to Fed Ex the company suddenly started looking more trendy. Not just that they even claimed that they saved so many tins of paint and therefore dollars!

Playboy once received a letter with the distinctive ‘bunny’ logo as the only identifying mark appearing where the mailing address would normally be written. Goes to prove, that logos, many a times, become the strongest identity of a brand.

Logos to freshen up

They may look like a tiny blob put next to the brand name, but logos work hard. They represent change. A new logo is the most effective way to signal change in an organisation. A new logo is used to make a jaded company look fashionable and in sync with the times. Hindustan Motors (remember the good old Ambassador) changed its logo to look more contemporary. The new logos of Hindustan Unilever actually consist of 24 symbols put together in the shape of a “U”.

Indian Airlines wanted to be seen as a company ready to take on domestic private airlines and shed its image of a plodding public sector undertaking. It acquired new aircrafts worth Rs.9,500 crores, and a new logo made people realize that things were changing at Indian Airlines.

Competitors & competition makes organisations sit up and take charge. Banks are all about image & service. With a whole lot of multinationals setting up shop here, our desi Indian banks realised it was time they changed. A whole lot of them developed new corporate identities to look younger & trendy. A large part of the “make-over” was a change in logos. Bank of Baroda now has a new logo called the “Baroda Sun”. UTI bank has a new name & logo “AXIS Bank”. SBI has undergone an image change. Even smaller banks like Lord Krishna Bank and Catholic Syrian Bank have redesigned their logos. They don’t want to be perceived as ‘last-genera tion’s banks’ and a new logo gives a quick facelift.

Companies that have been in the business for too many years face this problem. One of the world’s greatest vehicle brands Land Rover found its corporate look did not excite the younger generation much. It changed its corporate identity and the magic began working. Shortly after, the laurelled Land Rover achieved its financial targets.

Copyright © :-Rajita chaudhuri and Planman Media

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

Next gen SMSes gear up for the battle...

IIPM - Admission Procedure

Sit back – cell phone in hand – and wait for next generation of short messaging service (SMS). Affle, the UK-based mobile media company, is going to launch SMS 2.0 service for Airtel customers very soon. In fact, the pilot project in Delhi and National Capital Region (NCR) with Airtel subscribers is over, and it appears to have been a big success. The SMS 2.0 service will be rolled out with other GSM operators in a couple of months time; after that, Affle with also launch the service with CDMA operators (like Reliance). So what will this mean? The Affle powered SMS 2.0 application will usher in the era of “enhanced messaging”, and one will be able to customise text colours, fun emoticons, content and advertising. Affle has already tied up with a few advertisers (like Aviva Insurance, Makemytrip.com, Titan etc) who are going to display ads on every SMS sent or received through the SMS 2.0 platform. The ads on SMS 2.0 have a set of “call-to-action” features like ‘call now’, ‘call-me-back’, ‘ b u y - n o w ’ ‘launch video’, ‘answer-survey’, ‘view web page’ and so on. Now that’s Something to look forward to!

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Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!
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ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...

Jack Welch and Suzy Welch - Authors of the international best-seller Winning

When IIPM comes to education, never compromise

Bank of America, of course, is not a solitary example. The Japanese banking woes of the early ’90s gave numerous companies – including AIG, Ripplewood Holdings and Citigroup – a chance to pick up assets at attractive prices and enter a market that had long been closed to them. Those bets were made in a real doomsday-like environment. They also turned out to be big winners, as Japan recovered. Similarly, after the Enron blowup, billionaire Warren Buffet was able to take a position in its pipeline business at a deeply discounted price, a deal with a surefire payoff. General Electric, which Jack used to run, was also able to get a good price on Enron’s wind power assets, allowing it to jumpstart its alternative energy business. Indeed, business history is filled with stories of perilous risks that turned out to be prescient. The point is, anyone can invest in a trend, just as hordes invested in the sub-prime housing market over the past few years. Such bandwagon investing is easy. What’s so much harder – but so much more rewarding – is investing in the wreckage of a trend that’s been brought to a halt by its own excesses. Talk about a goldmine. Now, obviously, no one in business savours a downturn. The personal cost is always too high. People can lose their jobs and their homes. Sometimes they have to move or start again, or both. But the one incontrovertible fact of capitalism is that markets ebb and flow. Industries contract and collapse, bankruptcies occur. Cycles happen. Most companies take advantage of the obvious opportunities. That’s well and good. But the winners of tomorrow are often those who take advantage of every opportunity, including those that arise when – or because – the sky is falling.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

Jack Welch and Suzy Welch - Authors of the international best-seller Winning

When IIPM comes to education, never compromise

Bank of America, of course, is not a solitary example. The Japanese banking woes of the early ’90s gave numerous companies – including AIG, Ripplewood Holdings and Citigroup – a chance to pick up assets at attractive prices and enter a market that had long been closed to them. Those bets were made in a real doomsday-like environment. They also turned out to be big winners, as Japan recovered. Similarly, after the Enron blowup, billionaire Warren Buffet was able to take a position in its pipeline business at a deeply discounted price, a deal with a surefire payoff. General Electric, which Jack used to run, was also able to get a good price on Enron’s wind power assets, allowing it to jumpstart its alternative energy business. Indeed, business history is filled with stories of perilous risks that turned out to be prescient. The point is, anyone can invest in a trend, just as hordes invested in the sub-prime housing market over the past few years. Such bandwagon investing is easy. What’s so much harder – but so much more rewarding – is investing in the wreckage of a trend that’s been brought to a halt by its own excesses. Talk about a goldmine. Now, obviously, no one in business savours a downturn. The personal cost is always too high. People can lose their jobs and their homes. Sometimes they have to move or start again, or both. But the one incontrovertible fact of capitalism is that markets ebb and flow. Industries contract and collapse, bankruptcies occur. Cycles happen. Most companies take advantage of the obvious opportunities. That’s well and good. But the winners of tomorrow are often those who take advantage of every opportunity, including those that arise when – or because – the sky is falling.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!

In our view, this credit crisis is just a financial sector crunch, not an economic Armageddon

IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES

All of those dislocations came, wrecked havoc and eventually got cleaned up by market forces with some form of government intervention. Without question, that will happen this time around too, most assuredly because the underlying global economy is so fundamentally strong. Yes, it may be entering a period of slower growth, but thanks to record levels of economic interdependence and activity, it is more resilient than ever. Which is why now is the perfect time to take the big swings. The rewards can be huge, even disruptive – in the best sense of the term. Case in point is Bank of America’s recent $2 billion investment in Countrywide Financial Corp., a leading mortgage banker that was facing a liquidity and credibility crisis. The deal not only delivered short-term paper profits to Bank of America, it allowed BofA to leapfrog its way into the mortgage business and opened the gateway to a flood of new deposits. In one fell swoop, Bank of America expanded its market share and enhanced its industry profile, basically changing its competitive position.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review

All for the hubble-bubble…

This pure silver hookah offered by the Central Cottage Industries looks more like an antique artefact than a narghile! Inspired by the Mughal gharana, the hookah has an in-depth urn to store more water and the beautifully adorned flexible pipe only adds to the wonderful experience…Smoking could never be more stylish! Price Rs 1, 00, 000.

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Source : IIPM Editorial, 2008

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

Holds candles and class...

Once you have a look at this 6 kg silver candle holder, you’ll know why there is nothing that can ‘hold a candle’ to this magnificent piece! Standing tall, this grand object of desire has enormous holders enough to hold at least 20 candles and has been designed to match with the big halls and atriums. Grab this from Bankura Silver and let the holistic light sparkle your life. Price Rs. 2, 00, 000.

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Source : IIPM Editorial, 2008

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

Drink to your health!

Ion Exchange, a pioneer in water treatment technologies in India is up with yet another innovation – the Zero B 7-stage water purifier with a 7 stage heptapure technolgy, a super-advanced RO system. Equipped with a QC Filter, a Sediment Cartridge, a Bacteriostatic Activated Carbon cartridge and Reverse Osmosis membranes, the purifier gives out the safest drinking water. Price Rs. 14, 990.

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Source : IIPM Editorial, 2008

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

Oh baby, let’s hold hands!

A tiny wiff of consolidation in the air, but... After aviation, a hint of consolidation has appeared in TV channel space. With the idiot box swamped in a deluge of tiny, niche channels, marketers have hit a new way to club resources and benefit. Star India Pvt. Ltd. and Broadcast Initiatives Ltd. (of the Adhikari Brothers fame) have collaborated, so that the latter has leased out its ad sales function for Live Today, a Hindi news channel (earlier known as Janmat) to Star India. In as much, Star network which was earlier running distribution errands for channels like Disney and Hungama, has taken a leap forward by offering its formidable strength in ad sales to a channel outside the Star bouquet. Yashpal Khanna, Senior VP, Star Networks asserts: “This is a pilot project and the success or failure of it will decide our future alliances to share marketing assets. We plan to add Live Today to our existing ‘package’ of assorted channels.” The move will also help Star India expand into a profitable sub unit. For Broadcast Initiatives too, the deal is a win-win proposition, as it would help them gain an initial ad base, without incurring requisite marketing expenses. Tagging along with a big brother in the industry will get them ‘visibilty’ and ‘people’s expertise’, which the nascent media house couldn’t possibly attract on its own at this stage. “But, in the long run, it makes sense for Live Today to invest in setting up its own infrastructure,” suggests media analyst, Rajiv Tewari. Wonder where these baby steps of consolidation will ultimately lead...

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Source : IIPM Editorial, 2008

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

National advertisers

National advertisers, who till now had been singing paeans of the mass market reach delivered by TV and print have, of late, begun to realise the importance of radio as a secondary medium. Though in the recent past, there has been an increase in the contribution of radio in the total advertising expenditure, but it still stands at a meager 3% (Rs.5 billion in absolute terms) of the total ad pie of Rs.163 billion in 2006. In stark contrast, globally radio has a much higher 8.5% share in the total ad pie (according to an SSKI India report). The antithetical figures only go to prove that radio is still a largely unexploited medium in India, brimming with tremendous potential. However, this is not to say that popularity of radio as an advertising medium is all set to explode overnight. In fact, for the next few years, chances are that local advertisers will continue to remain the major revenue generator for the medium. And the challenge for this sleeping beauty will be to deliver a sixer for the local guys, hence proving her power to national players, who are still skeptical before betting big on radio. Will this ‘sleeping beauty’ live up to this second awakening, as beautifully as she did it the first time round? Stay tuned!

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Source : IIPM Editorial, 2008

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

Regional campaigns

Sample this: A slew of regional campaigns on radio like the Shivaji-Rajnikanth contest on Radio Mirchi in the South did well and boosted the movie’s performance. Similarly Haldiram’s ads in West Bengal are doing rather well. Retail giant Big Bazaar also is effectively using radio to lure the local janta. Today, major local advertisers on FM are malls, jewellery shops, real estates, saree showrooms, educational advertisers, restaurants, automobile dealers, multiplexes and FMCG brands. predictably, when it comes to wooing national advertisers, the trophy rests with those radio channels that boast a national reach – Radio Mirchi, Radio City and Big 92.7 FM, to name a few. These radio stations with a national network obviously find favour with big-ticket national advertisers like telecom companies, banks, insurance majors and even mutual funds. Radio channels that have only a regional reach, on the other hand, have to be content with small (but abundant) local advertisers for the most part. However, this trend too is likely to see a shift, as national advertisers begin appreciating the personal, one on one contact that regional and local radio stations have begun establishing with listeners.

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Source : IIPM Editorial, 2008

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

BRAND: Sony Ericsson

HEADLINE: I love waking up to FM
BASELINE : NA AGENCY : Saatchi & Saatchi
4Ps TAKE : With ear-plugs in place, the reigning heartthrob of Bollywood Hrithik Roshan (okay, he may not be very visible on the silver screen these days, but he’s all over the purple backdrop of this ad at least!) is a treat for sore eyes! And of course, you just can’t miss what he’s endorsing: Sony Ericsson’s K220i and J120i mobile phones! The USP is the FM alarm: wake up to the sound of music. The body copy lists the additional features: the VGA camera, FM radio, stamina battery, et al of both the models-K220i and J120i. The clinching benefit to the brand is obviously the great value for money package: mobile phones loaded with features but priced at nominal rates of Rs.3,995 and Rs.2,345 respectively. Targeting music lovers, the headline, ‘I love waking up to FM’ reiterates the USP of the product. Time to wake up, guys!

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Source : IIPM Editorial, 2008

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

BRAND: Honda City ZX

HEADLINE: We met the
future yesterday.
BASELINE : Outperform
AGENCY : Dentsu Marcom
4Ps TAKE : Honda’s driving down the high-technology path! In this ad, the auto giant brags about its futuristic technology feature: E-10 (10% ethanol with petrol) compatibility that leads to better performance on the road – along with superior driving comfort. That being the USP, the single-minded focus is to depict how Honda keeps track of technology; what’s more, the communication talks about how the brand specializes in anticipating future technology! ‘We met the future yesterday’ is brilliant positioning in an age when everyone is riding the tech wave! The body copy informs that E-10 compatibility is not only inherent in its Honda City ZX but has been used it in the Civic, the Accord and the CR-V, thereby broad basing the brand appeal. The visual immediately catches the eye: a silver Honda City ZX looking quite majestic! Such communication will ensure that Honda ‘outperforms’ – and streaks ahead of the rest!

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Source : IIPM Editorial, 2008

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

BRAND: Tata Indicom

HEADLINE: The big daddy of
mobile phones meets the...
BASELINE : Switch to Tata Indicom. And experience the difference.
AGENCY : FCB Ulka
4Ps TAKE : Now, why would Tata Indicom be saying a big ‘Hello’ to Moto? Because this is a cross-branding exercise – and this ad proves that two heads are always better than one! The power idea is to introduce the sleek, slim and Internet-enabled Moto-Q in the Indian market and at the same time promote Tata Indicom’s mobile services too. Targeting busy professionals (Internet and mobile users) who are on the move, the USPs are the multitasking functions (thanks to Tata Indicom!), as also the Moto-Q tag of being the world’s thinnest Smartphone with the QWERTY keypad. The headline – ‘Big daddy of mobile phones meets the mother of all laptops’ – is effective: great marriage! Even the visual is appealing with foreign faces (conveying the global dimension of this co-branding exercise) and the life-size sleek Moto-Q occupying centre stage. The rewards to the prospect are, of course, the Tata brand name reinforced by the Motorola tag. A mobile plus a laptop – talk about a double whammy!

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Source : IIPM Editorial, 2008

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

‘Playing safe’ is in...

...or is it Indian pharma’s new mantra?
Small is passé! Who says?! In an era of mega real estate property sale, wide-body aircraft launches and of course, colossal deals being closed globally, how can one lay a wager on anything minuscule?! But somehow, Indian pharma honchos seem to bet on ‘small being beautiful’, and have started looking at small acquisitions; so much unlike big ticket targets they were eyeing just a year back! Yes, out of the 21 coup d’états by Indian drug makers during the past year, a thumping 85% were valued between just $25–$100 million – puny when compared to gargantuan acquisitions like betapharm, Terapia and Taro made by Dr.Reddy’s, Ranbaxy and Sun Pharma respectively in the pre-2007 days! So, have Indian pharmas lost their appetite? Or is it their small size (when compared with global behemoths) that’s forcing them to? As a resopnse, Anindya Acharya, Deputy Director, Drugs and Pharmaceuticals, CII snaps, “No! It’s a well planned strategic move by the Indian pharma companies, targeted towards bettering their portfolios by entering certain niche segments rather than gobbling the entire portfolio of the prey.” Sounds convincing... until you look at a recent study by PwC. “Capital constraints can be a significant brake on growth for domestic pharma companies. About half of all the companies surveyed might be looking for deals if funding obstacles could be overcome,” the report stated. Whatever be the reason for softening of India Inc.’s motives, things look well in control at the moment. At least, the madness of going global for the sake of doing so appears to be over... or atleast we hope!

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Source : IIPM Editorial, 2008

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

Milk outlets

“This milk will be utilized for our milk outlets in our marts & we will also be offering fresh milk based products produced then & there. On one hand, this is linking up farmers by providing them a market; on the other hand, it’s offering high quality products to consumers,” Raghu Pillai, President & CEO, Operations & Strategy, Reliance Retail Ltd.. Not to be left out, even Bharti and the cola majors Coca-Cola and PepsiCo have spelt out their plans. So on one hand, it means more organized dairy business with small-scale dairy owners benefited, but at the same time, it also means gradual undermining of unorganised players. Of course, the eventual long term winners in this dairy game will be the ones who can effectively address the concerns on both the demand & supply side. But for customers, it’s a virtual bonanza, as it means that they can have their milk & drink it too!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Justice to its dairy

Being a company with diversified interests, HUL has not been able to do justice to its dairy division. Affirms, P.L. Kaul, President, All India Food Processors’ Association, “The dairy business is growing at more than 40% and more and more MNCs will sustain to dairy as a driver of their food venture. Soon this sector will create many new products, which Indian consumers could hardly think about.” Such innovation has already begun with Nestlé & Amul recently venturing into the probiotic market. But such innovations are not only limited to product launches. With the non-stop organized retail revolution happening in India, dairy is going to evince many structural reforms. With the entry of Indian retail giants like Reliance, the dairy business is going to evince a sea change in the traditional marketing prevailing in the Rs.3.6 trillion Indian foods & beverages market. Reliance is looking to procure seven lakh tonnes of milk every day by 2008 end, through its 1,000 direct collection network in Punjab & is planning to expand such procurement hubs in Rajasthan & Andhra Pradesh.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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