Investee: IDFC

Investor: KNB

Investment Value: $180 mn

FIIs and QIPs are gung-ho about infrastructure development in India. IDFC has been a key player in attracting investment from foreign players. In 2005, when infrastructure development gained momentum, IDFC was responsible for financing nearly 25% of the projects. For KNB, this deal meant having a share of the pie that this sector can offer. Just after a year, KNB’s investment of $180 million has swelled to $440 million. This deal may pave way for other Malaysian firms wishing to invest in India. It can also work the other way round, when IDFC and its investors contemplate investing in Malaysia.

On November 13, 2007, Khazanah Nasional Berhad (KNB), an investment arm of the Malaysian government, picked up a 9.95% stake in Infrastructure Development Finance Company (IDFC) for $180 million. The aforesaid investment was made through a wholly-owned subsidiary of KNB, Sipadan Investments (Mauritius) Ltd. KNB acquired 10.1 crore shares of IDFC from UBS. With this block-deal, KNB became the second largest stakeholder of IDFC, after the Indian government which holds nearly 23% in the company. According to KSB, “It is a strategic investment, as the Indian realty sector is projected to experience one of the highest growth rates in the booming Indian economy.” The primary focus of IDFC in the coming times would be on energy and transportation. IDFC currently has major investment in 22 different infrastructure related firms. The company also manages two funds, viz. IDFC Development Fund and IDFC private equity fund. As of now, the company has investments totalling $8 billion in various projects. Yet again, the PE players are getting into high-growth and potentially lucrative areas.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

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Experiential marketing

With success stories like these to narrate, one cannot help but ask about the core competency of the agency. Priya is prompt to reply that “We have the concepts to deliver the right solutions for the concerns which are shared by the client.” She believes that honesty in the business in terms of deliverables is also essential. “One may commit anything to the clients, but one must be able to deliver them as well,” she avers.

Those are the dreams and determination that help in making an agency big and RC&M is no different. Adds Priya, “I try that in a year I can take up three such projects that would help make a dent in the industry.”

Hear, hear! With an ambition like that, small surprise that RC&M’s already going places!

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Source : IIPM Editorial, 2008

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

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ZEE BUSINESS BEST B SCHOOL SURVEY
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The Specialist

He’s a valuable advisor to ambitious Indian businesses with global dreams. Meet Vishesh Chandiok, National Managing Partner, Grant Thornton India or should we call him the prized merchant of the great Indian dream...

Those traditional mahogany interiors, the plush couch, complete with leather upholstery and, of course, fine tobacco smoke circles wafting from the pipe, held carelessly between his lips. Simple and sober, yet exuding dollops of classic old world charm. That’s Vishesh Chandiok for you, National Managing Partner, Grant Thornton (GT), India.

Gordon Gekko, a character from the 1987 film Wall Street (that even won Michael Douglas an Oscar) said that “Money never sleeps” and Vishesh Chandiok, who specialises in helping his clients multiply their money and investments, agrees wholeheartedly: “You make money in this business by charging time, so work life balance is to some extent a fallacy.”

In the business of money, somebody wins and somebody loses, but for Vishesh and his firm Grant Thornton, the success of their clients is their success, as their firm has aligned its growth with the success of its 1200-odd active client base. As the fifth largest accountancy firm globally and one of the oldest in India, Grant Thornton claims to cover anything and everything under the entire advisory value chain. “It depends by service really, from an idea to compliance and possibly exit; or business plan to implementing that plan; or designing an India-entry strategy, if it’s a global company; we even do HR issues, like compensation structure and organisation design; or cross border transactions, including inward and outward M&As and helping a PE/VC firm identify an investee,” boasts the man at the helm of Grant Thornton’s Indian affairs.

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Source : IIPM Editorial, 2008

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

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ZEE BUSINESS BEST B SCHOOL SURVEY
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IIPM in Financial times (Print Version)
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The Indian Institute of Planning and Management (IIPM)
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Amazing line-up of IPOs planned by companies

And that is the point. Irrespective of the dizzyingly highs and lows being witnessed at the bourses over the last few months, one fundamental that has remained unchanged is in the amazing line-up of IPOs planned by companies. If the year 2007 saw more than a 100 IPOs unfurled, nearly 150 IPOs are planned for the rest of this calendar year, including some of the biggest IPOs till date like that of state-owned BSNL and realty baron Emaar-MGF. Even Sahara Housing has planned a big budget IPO for later this year, sources close to the development told this magazine. More pertinently, they are leaving no stone unturned to utilise the opportunity (with huge communication plans) to lure in more investors to their camp, as also to enhance their corporate image in the minds of potential stakeholders. “So much money is drained in IPO advertising because public issues are open for very short term and companies vie for maximum impact in this period,” explains a leading media planner.

Says Prasoon Joshi, the man behind the Reliance Power campaign: “Good marketing communication ahead of an IPO, projects the promoter’s confidence in the project. If you are confident about your IPO, you announce it to the world, but if you are under confident then you keep it to yourself.”

And it’s not just the big boys who are marketing themselves aggressively before an IPO hits the circuit. Gone are the days when IPOs were considered as mere financial products. The way they are being branded, positioned and advertised these days, they are nothing short of acquiring the stature of a white-good brand. From boring worn out ads featuring just IPO related information, branding initiatives now comprise eye-catching corporate ads, packed with enough glamour to catch the eye of potential investors across the spectrum.

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Source : IIPM Editorial, 2008

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

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ZEE BUSINESS BEST B SCHOOL SURVEY
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I@leap

A graduate from the J.L.Kellogg School of Management in USA, Seigell is gung-ho on the potential that organized digital retail will get on the table for $4 billion HCL Group. The Indian hardware major boasts availability in 1100 plus outlets across the country. HCL Retail also has 5 of its own company-operated outlets (plus 45 more, which are built on the franchise model), where they are banking heavily on experiential marketing. “Unlike MNCs in the space, who are loath to bet big bucks on retail operations because of the heavy investments involved, we at HCL have captured the premium end digital lifestyle stores space,” he states.

From these stores, the company is happily peddling not just its IT prowess to consumers, but also diverse entertainment and communication products. “The response to the sheer experience that we roll out to customers at these centers – not just of handling the box alone, but also of using the product – is overwhelming,” points out Seigell, likening the initiative to the highly interactive Apple stores in America.

Of course, all this involves tremendous hard work and organisational abilities and Seigell’s leadership mantra of “highly involved and motivated team work” goes a long way in streamlining the company’s retail blueprint.

For now, the biggest challenge for both HCL and its retail honcho is to register a strong presence in the nation’s fast-growing notebook market, which for now is dominated by global biggies like Hewlett Packard, Lenovo and Dell. And MiLeap may just be the beginning of HCL’s grand retort!

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Source : IIPM Editorial, 2008

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

For decades, analysts and activists have been crying hoarse about the private sector forging a strategic alliance with the public sector to build the badly needed infrastructure for India. GMR is finally making it happen

The Rs.2,500 crore GMR Group has placed immense faith in the Public-Private-Partnership model for infrastructure development in India – a faith that seems to be paying rich dividends too. Take the airport space, for instance. Winning the bid has awarded it a 30-year operation, management and development agreement for the highly lucrative Indira Gandhi International Airport at New Delhi, as well as build, operate, develop & maintain rights for a Greenfield international airport in Hyderabad. Though the proposal for a second international airport is proving to be damp squib, the PPP approach for airport infrastructure seems to be spot on thus far.

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Source : IIPM Editorial, 2008

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

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The 50 Ps of Business and Marketing

With this issue, 4Ps B&M will have completed a golden run of 50 issues that have constantly informed, provoked and titillated hundreds and thousands of readers. Marketing and advertising has always been about the power of ideas, words, pictures, slogans and jingles that captivate and capture the imagination of the consumer. We always thought that marketing goes way beyond just the 4Ps; or for that matter even the so called 7Ps. However, the mind boggling transformation that is taking place in India Inc. begs to go beyond established clichés. The nature of business and marketing in India is typical to the country and so, we are proud to present the first ever and exclusive listing of the 50Ps that move and shake the world of marketing in India.


Promotion

It was ridiculed during the pesticide controversy. It was jeered at for its one-up advertising wars with rival Pepsi. But Coca Cola’s promotional activities silenced all critics

We at Coca Cola have always believed in collective growth or overall growth for the society and our promotional activities have always rotated around this philosophy. But we don’t believe in just claiming to have done so, we rather act it out. We never highlighted our care for the society or what we have done to protect the environment unless we really achieved some milestones in these parameters. Being in this country for more than ten years and after having achieved certain milestones in the societal context, we thought of promoting the connectivity of Coca Cola with its consumers. We were already doing a number of things – we had a wide portfolio of products that refreshed everyone it touched; we made community efforts that made a difference to the lives of a number of communities in India; and today, none can deny the fact that we have acted as responsible corporate social citizens. After all these needs are promoted well by us, we further plan to come out with newer corporate campaigns. To that effect, we will now be promoting the overall Coca Cola as a ‘corporation’. I think that becomes necessary for an MNC, especially when it comes to a country for a long inning and has already become a part of daily life of the citizens of that nation. This is our promotional strategy and we want to convey to the Indian masses what the strong, true, healthy and socially responsible corporation Coca Cola stands for in modern times.

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Source : IIPM Editorial, 2008

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

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Dressing em’ up

Ashish Dikshit is buoyant on launching new standalone stores

He was busy observing the layout and design of an Esprit store in a coming-up mall in the capital, when 4PsB&M caught up with Ashish Dikshit, President, Madura Garments (from the stable of the Aditya Birla Group). And not without reason. After all, he is gearing up to launch several standalone stores for the various brands in Madura Garment’s kitty in 2008.

What’s more, the plan is to have stores of similar brands strategically placed next to one another. For example, a Van Heusen outlet would be right next to the Louis Philippe store, and so on. The logic is seemingly simple – if a customer is looking for wider options, he/she will not have to travel far to encounter another brand outlet from the Madura Garments stable. And such aggressive plans are not only limited to one mall in Delhi, instead the company has similar plans across all metros, for 2008.

And why not? Madura Garments has plans to launch more that 15 new brands in 2008. The company is not only gearing up with exclusive marketing plans, but is vigorously strengthening its back end too. “We will introduce more brands in 2008, targeting all classes of audience. We will have more retail presence and more exclusive outlets. Another five years and all our brands will have outlets in every corner of the country,” explains Ashish. Presently, the company boasts a 30% market share and has managed to steal the show from arch rival Arvind Brands by buying most of the brands they sell. Similarly, even the brands they will reveal in 2008, will be owned by the company. “Most of our brands are self owned, with more than 50% stake in each of them,” avers Dikshit. “From the profit perspective, it’s always safer to have your own brands and that’s the reason that Madura has been the most profitable company in the segment,” feels an analyst from CII.

Small surprise that the Clothing Manufacturers Association of India (CMAI) has bestowed Madura Garments with award like the Most Admired Company of the Year for two consecutive years 2006 and 2007. Says D. K. Nair, Secretary General of Confederation of Indian Textile Industry, “Domestic consumption of garments will have a growth of over 10%, as more people shifting from custom-made to ready made garments.” Madura Garments, for one, is gung ho to tap this market, with an aim to increase their turnover by 25% from the present Rs.395 crore.

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Source : IIPM Editorial, 2008

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

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Story of launch

That was the story of launch and then what became important was to connect with consumers across the country. Here also ITC Foods resorted a totally different strategy. “Since it was a low price food product we wanted to connect it with the local taste and culture. But the connection was supposed to be delivered in a very funny way” explains Malvika. So they rolled out different ads for Leh Ladakh and Gujurat. The mission was that by the time Bingo reaches every corner of the country, denizens of that locality should be aware of what exactly Bingo stands for. But, that was not adequate to shake the pillars of Big daddy FritoLay and hence the company started proliferating its product portfolio to give Bingo a multi-flavour touch.

And this strategy needed to be conveyed well. “So our ads started focusing on the quality of the product and of course we wanted to do it with a fun factor. Because we believed in a product like Bingo, it was always easier to connect with consumers through comedy,” explains Ravi.

Well, highlihting the key factors of Bingo like its crunchiness, and its availibility in wide variants was the key focus of the ads. Unlike other food ventures, here ITC didn’t resort to oomph of Bollywood stars and instead fun factor did the trick. Moreover, the company also believed that the fun factor is faded away in the sheen of Bollywood stars. Explains Malvika, “The product differentiating factor was very well established through fun and no brand ambassador could have done it so well.”

So, what’s next? The commercial might start a trend of ads targeted towards specific states. But even if it does not, we hope Bingo has yummy times ahead without any confusion and the combination of innovative taste with comedy ads continues to be the success recipe for ITC Foods.

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Source : IIPM Editorial, 2008

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


B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)

Of politics & promotions

What gives when TV media and political parties join hands...
When India saw ‘Red’ over ‘Idol’...
It seems that Red FM has begun taking its tagline cum jingle Bajaate Raho, a tad too seriously. The hullabaloo around the grand finale of Indian Idol 3 had not even died down, when private radio channel Red FM ran into a controversy regarding disparaging comments of its RJ, on the winner of the reality show, Prasanth Tamang.

The remarks of the RJ in question sparked off riots in Siliguri and other parts of the North East. The situation tensed further for Red FM, when the Indian I&B Ministry found the comments for Tamang racist, hurting the sentiments of the entire Gorkha community, and ordered a ban on the FM channel for a week. However, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) gave temporary relief to the channel by issuing a stay order on the ban till the next hearing, scheduled in November. The controversy has sparked off a fresh round of debate on whether media should be regulated by an outside body or be its own self-appointed regulator. Whatever the end result, the issue has left a bad taste in everybody’s mouth. In India, freedom of speech is a fundamental right, but never forget the old saying that ‘your freedom ends where my nose starts’!

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Source : IIPM Editorial, 2008

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

Of course, he didn’t forget to inform us about the other half of his divisional empire – Sahara Care House, which takes care of the NRI families in India. According to Romi, there are over 25 million Indians living in 70 different countries across the globe, and which have left their families behind in India. Therefore, this department services their needs through 249 care houses spread across 197 Indian cities and which provide facilities ranging from delivery of funds, taking their parents to the hospitals, taking them for vacations et al – indeed an innovative business model!

Sahara Global also boasts of a real estate division comprising 217 city-homes, which are marketed across the world. Aamby Valley in Sahara Lake City, near Mumbai, stands out in this regard. It is one of the world’s finest MICE (meetings, incentives, conferences & exhibitions) destinations. Romi states, “We are marketing one of the finest integrated townships ever made in India in the international market. It has the best of product mixes in terms of the various kinds of housing options. Integrated townships within a city comprise hospitals, schools, colleges, stadiums, shopping malls; movie theaters.” When we probed into the challenges in this sector, bang came the reply, “You can always expect competition to come but we have so much of advantage in the form of innovation and we will be acquiring customers before anyone else. If we service them well, they will not go... retention is the key.”


Earlier, the idea of a perfect family holiday or a romantic honeymoon was limited to places like Switzerland, Venice & Paris but not anymore. Romi’s take on the potential of the Indian luxury travel market, “Rs. 65,000 crore is being utilized on luxury each year by the Indians and travel has become a necessity in life. It’s an avenue, which I think is growing very quickly. People in India are becoming brand aware, they want to see what the brand has to offer in terms of cosmetics to clothes, from cars to cuisines and of course the places.”

‘Paradiso 101 Millionaire holidays’ are India’s first customised luxury holidays. The travel structures range from family vacations to high level corporate gatherings, and even to lavish weddings in villas or islands abroad. Their package includes dream holidays to last for a lifetime offering a $46,000 per night on Necker Island, Richard Branson’s 74 acre private paradise in British Virgin Islands, Red Ferrari tour in Italy, South Africa’s Blue train ride, stay at Blancaneaux Lodge owned by Francis Ford Coppola and much more, which the richest Indians also couldn’t imagine visiting due to lack of knowledge and inaccessibility.

And ‘Paradise’ is the word Romi gladly uses to describe his long association with the Sahara pariwaar, and he sums up his mantra for success to the youth saying, “There are no short-cuts to success but a lot of hard-work. One should put emotions in his work; I mean get emotions to your work-place then one can definitely succeed in life.”

A believer of an open culture within the organisation, where there is always room available for discussions, he is a people’s person and gives freedom to perform to each employee. But he does place a lot of importance to innovation & creativity. Truly, when it comes to building great organisations, there cannot be a substitute for passion; and when that flows down from the helm – as in the case of Sahara Global – there are luxurious times ahead for sure... Competitors, beware!

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Source : IIPM Editorial, 2008

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

End of Act 1...

The curtains are falling to connote the end of the stint of Manmohan and Puja Shetty with Adlabs, the company Manmohan built from scratch. Manmohan Shetty, currently MD & Chairman had sold of the controlling stake to Anil Ambani’s ADA group in August 2005. The latest twist in the tale is that both the father and daughter (currently whole time Director) have decided to step down from their respective positions. At present, they are both serving a notice period but we can expect a lot of fireworks afterwards. Although the Shettys have stepped down from their managerial position, they are not willing to part up with their 5% stake they still have in Adlabs.

If the grapevine has to be believed there has been a constant clash of interests between the Shetty duo and the Ambani major. As is apparent Adlabs is just a cog in Anil Ambani’s convergence wheel, and it may not have gone down well with the company founders. Now with the two out of the way, Anil Ambani can run the operations of Adlabs in his own flamboyant style to suit his ends.

But while the company may prosper under the aegis of the ADAG empire, it would surely miss the passionate involvement of its founder. But then, to the winner belong the spoils, don’t they?

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Source : IIPM Editorial, 2008

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

Branded Politicking

They may not have heard of Al Ries & Jack Trout, but the Indian political scene is rife with case studies of resounding branding successes, as well as crippling branding failures!

On the eve of the last Bihar state elections, Lalu, the master raconteur was regaling his audience of supporters, media persons, local leaders & rustic admirers with mirthful stories about contemporary politics on one hand & lampooning his political opponents on the other. “The leaders of the National Democratic Alliance,” he said, “are arguing among themselves as to who should be the next CM of Bihar. But they appear to have missed the board outside the house which says ‘No Vacancy.’” Lalu lost the election. And yet his brand equity remains undiminished. A core base of voters always remains loyal to a Jayalalitha or a Lalu. In marketing terms, that’s successful branding. By definition, commodities or undifferentiated brands now sell no more in Indian politics.

A politician is the quintessential brand. In politics as in the market, there is a seemingly endless beauty parade of new products periodically. These new arrivals rub shoulders with established ones. Political brands have their stages of political life cycle – introduction growth, maturity & decline – just like commercial products in brand life cycle.

Branding has become ubiquitous in the political arena nowadays. Amidst all the slogan shouting and rabble rousing is concealed an effective message: either introduce a new brand (read candidate) to customers (read voters) and brand him with desired traits, all things the public wants, or to glorify the attributes of an old hand reasserting the relevance and uniqueness of this brand. A brand has to be relevant & differentiated.

Political parties invest a lot of time, effort, and money on building brand equity. Comes judgement day and the customer faces the task of choosing from a crowded supermarket aisle. He hopes to encash his vote for a better future; he looks around for a brand he knows and trusts (brand recall & loyalty). There are strategic choices though: one can choose an individual brand (independent candidate) or a family brand (party candidate). Brand recognition through easily identifiable logos like lotus, hand, et al play a role too.

Evaluation, though, may indicate that brands are positioned uncomfortably close to each other. Functional benefits provided by any brand make up for only a small part of the brand experience. The real strength lies in the intangible benefits – the values that it represents, and which the targeted customer identifies with or aspires to own. This projection of customer aspirations onto the brand in question – and the resultant vicarious fulfillment – makes a buyer splurge on a brand more moolah than it is intrinsically worth. And remember, this value addition happens post production, through astute communication. The same logic can be applied to understand as to why a Mayawati or a Mamata have strong consumer franchise among the ‘disadvantaged,’ or why a Manmohan Singh is the middle class pin up model. They hold lot of promise for loyalists.


Brands typically address specific segments. That is how AIADMK or BSP entered the political boxing ring. At times if a brand seeks to adopt a diffused – as against a focused – positioning because it wishes to ensnare the customers of other brands, such a switch over from other brands users may fail to occur. Worse still, even the brand loyals may betray eroding allegiance. That perhaps explains why last national elections results were not so shining for BJP, notwithstanding a very eye catching ‘India Shining’ campaign. Unfortunately for NDA – the customer refused to play ball. So another lesson: credible, not clever, communication works. During World War II, RAF bombers were assigned to drop scores of propaganda leaflets over Germany claiming that German authorities were lying about war losses, & urging Germans to demand the ‘truth’. But the whole exercise made pilots comment sardonically, “The only thing achieved out of this exercise by the British Government was to supply the Continent’s requirement for toilet paper!”

To be sure, however, if one can extend one’s sphere of influence, without compromising core values of the brand, into different market segments, the gains will multiply. BSP, the dalit outfit managed to take UP by storm in the 2007 state elections because Mayawati successfully extended her brand influence into the new (‘other brand loyal’) markets inhabited by Brahmins and even Muslims.

Thus, one view says that truly powerful brands have a narrow focus. Brand extensions may yield easy gains in the short term but in long run, the exercise is likely to erode brand identity. But a contrarian view also prevails, advocating transcending original boundaries to convert potential gains into actual ones. The debate is inconclusive. The only consensus is: brand extension is a tricky proposition, more so if it involves extending a mass market brand into a premium category, and vice-versa. Handled well, however, it can win many new customers without diluting the brand equity or even alienating old loyalists.

The complexity involved in extending a brand without ending up with a failed product & a critically diluted brand image is something that political parties are very much seized of. None more so than the BJP, which tried to reposition itself during the last general elections from a party with Hindutva as the major election plank to a pan Indian organisation, while concurrently retaining old faithfuls. Congress, too, has seen steady erosion in brand value. From being the ‘mother brand’ once upon a time, (of course due to virtual monopoly brand power in post Independence phase, with the TINA factor – There Is No Alternative – in its favour), today the party finds many of its values usurped by interlopers in clearly defined niches. Generally, markets in transition, as contrasted with matured ones, witness unfreezing and freeing of entry conditions into a hitherto restricted or even a monopoly market. Consequently they become extremely fragmented with even the leading brand enjoying not very high market share. Consolidation of brand takes place much later. Should we perhaps then accept the rise of coalition politics as the transitional stage in the development of democracy in India?

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Source : IIPM Editorial, 2008

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

Sunil Bharti Mittal

“Bharti Airtel also crossed the 50 million customer mark to enter the league of the world’s top telecom companies. Going forward, we see strong demand for telecom services across all segments and we are well placed to take advantage of these growth opportunities.”

Awards: Conferred upon one of the highest civilian awards, the Padma Bhushan by the Indian government. Sunil Mittal was also the NDTV Profit Business Leader of 2007 and his company Bharti Airtel was adjudged as the ET Company of the Year 2006-07.

Strategy: With a strong emphasis on value added services, Airtel continued to rule the Indian telecom sector in 2007. The largest telco focussed on the important rural market of India and registered the highest monthly subscribers addition of over two million every month for several months.

Acquisitions/Investments: Signs $150 million deal with Huawei and $400 million network deal with Ericsson. The company announced $2.5 billion capital expenditure plans.

Controversies: Bharti’s offers to pay Rs.2600 crore for another GSM License, which was rejected by the government. Fights Reliance over spectrum issues.

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Source : IIPM Editorial, 2008

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

Weight no more!

Given a choice, not many would go for those painful weight loss treatments – liposuction, lipolysis or going under the surgeon’s scalpel, which anyway don’t leave you with the most desired results! An improved solution called Bella Contour, distributed by Natural Health Pharma combining a Dual Program Mode and Real Time Resonance Technology together with an electrode system, makes for a perfect ultrasound treatment for various layers of the body’s skin, leaving you with a figure that you’d have killed for! Launch price Rs.60,00,000.

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Source : IIPM Editorial, 2008

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

Indians can make more than just bullock carts! Believe him, will you?

JAGDISH KHATTAR... MD, MUL
Indians can make more than just bullock carts! Believe him, will you?
When we see a myriad of Maruti Swifts or the brand new SX4s zooming past, it seems so very unreal to imagine that six years back, it was this same company, Maruti Udyog Ltd. (MUL) which was receiving the whip from foreign auto players on all counts. In short, MUL was in a total mess! But then began a transformation... an astonishing makeover of Maruti, which was led by its MD, Jagdish Khattar! And lo! Today, while the very same foreign automakers are losing money, MUL is loving each day, with demand for its vehicles skyrocketing; so much so, that a month’s wait is guaranteed in case you’d want to purchase a Swift model! Khattar radically altered MUL’s service model (like increase in count of service stations, better financing, car insurance and sale & purchase of pre-owned cars et al) which helped revive MUL’s market share and save customer count! And with an elephantine market share of 47%, there’s no reason why the domestic auto industry shouldn’t give him a tip of the hat!

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Source : IIPM Editorial, 2008

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

Eight months and a lifetime of achievement... for some, ‘any’ length of time is ‘enough’ time indeed!

M.B. SHIN... MD, LG Electronics India Ltd.

Eight months and a lifetime of achievement... for some, ‘any’ length of time is ‘enough’ time indeed!
Filling up the shoes of K.R. Kim, ex-MD of LG Electronics India wasn’t at all an easy task, but M.B. Shin, the current MD made it look smooth... Questions were raised on whether Shin could carry forward the momentum that his predecessor Kim gave to LG in making it the numero uno player in Indian consumer durables space. Cut to the present and we see that Shin is not much behind. During his stint as a Marketing Executive of LG’s AC & Compressor unit, LG had earned the distinction of being the global leader in the residential AC market. “In the past eight months, in India, I have tried to instill a passion for quality consciousness in LG and made LG a more people oriented company,” says Shin. Sure enough, he has built LG into a people-centric place & the secret is his passion to excel as he sums up, “Odds are always there in every decision & target but it’s overcome by passion, dedication & team work...’ Well said, Shin!

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Source : IIPM Editorial, 2008

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

Very identical reasoning

Prasad Narasimhan, VP, Marketing, TVS Motor, gave a very identical reasoning, “Celebrities such as Preity Zinta and Trisha (south Indian actress & new face of TVS Scooty) have very strong personalities which rub off positively on the brand...” And with the scooterette segment in a euphoric state this war is only going to intensify in coming months. According to a Society of Indian Automobile Manufacturers (SIAM) report, there has been a growth of more than 18% in sale of scooters and scooterettes in the month of June 2007 as compared to June 2006. On the other hand motorcycles have shown a phenomenal dip of 17%. No wonder that six months down the line, we also have Lara Dutta endorsing Karizma. So does that mean the men of the game like Hrithik Roshan and John Abraham are in for some really serious competition from these femme fatales? While that’s not easy to predict, one would agree that marketers are targetting women customers with an unprecedented aggression. And as for the battle of the Indian Power Puff girls, it’s for this market to decide – which star captures their aspirations the best...

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Source : IIPM Editorial, 2008

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

‘Fairer’ on the other side!

The scooterette market gains star power
Fasten your seatbelts to witness another sizzling war in Indian advertising terrain. You must be familiar with the American ‘Power Puff Girls’ uniting and using their superpowers to defend their town from all evils. Contrary to that, the Indian ‘Power Puff Girls’ are all set to use their ‘super powers’ (er... star power) to wrestle it out against each other! Meet our very own Blossom, Bubbles & Buttercup from Bollywood: the very hot Bipasha, who has been recently roped in to endorse Kinetic SYM Scooters, perky and bubbly Preity Zinta warning not to take panga with pink (for TVS Scooty) and the Punjabi kudi Priyanka advocating ‘why should boys have all the fun’ (for Hero Honda Pleasure). When 4Ps B&M quizzed these marketers about the catching trend of hiring film actresses as brand ambassadors for scooterettes, the story was much the same. “Bipasha is seen as an intelligent, independent, fit and confident modern woman and young girls aspire to be like her – successful, savvy, cool. That’s exactly the personality we want to give to our scooterette”, argues Ajinkya Firodia, Vice President, Sales & Marketing, Kinetic Motor Company.

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Source : IIPM Editorial, 2008

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

Waiting for the night...

What’s common with Starbucks & Lopez?
Jeniffer Lopez’s superhit track ‘Waiting For The Night (our version)’ must be echoing in the Indian coffee lovers’ minds, what with the most awaited entry of the global coffee chain Starbucks getting postponed one more time; perchance for as long as two years this time. Earlier this year, Starbucks announced its plan to rollout its first coffee store in India by October 2007 with plans of adding 100 stores every year for the next five years. But recently, it announced that it is delaying its entry. Market buzz says that the major reason for this sudden change of mind of Starbucks is the name game fight with the Indian retail major Pantaloons. Pantaloons wants its brand name attached to the retail coffee shop, which is completely unacceptable to Starbucks.

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Source : IIPM Editorial, 2008

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

Strong logistics chain

So now Starbucks is on a quest to find a partner who has a similarly strong logistics chain, sturdy raw material base and a fair understanding of the the Indian tongue. But with FDI in single brand retail allowed, what stops Starbucks from entering on its own? Gibson G Vedamani, CEO of Retailers’ Association of India, clarifies, “Tying up with Indian partners gives certain benefits. Like logistics, being easily aware about the local environment etc.” Starbucks is already late in the Indian market, what with Cafe Coffee Day (CCD) and Barista already cornering the major share of the coffee pie. Barista now plans to invest Rs.5.16 billion and open up around 270 new outlets by the end of this year. CCD is planning its own 500 new outlets. Even Coffee World, Costa Coffee, Mocha et al have big expansion plans in the coming two years. Starbucks or no Starbucks, coffee sells in India, more than Lopez :-)

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Source : IIPM Editorial, 2008

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

Men’re from Mars...

Keep rolling, rolling, rolling seems to be the mantra for the Indian tyre czars since all of them have announced some handsome capex plans. Despite the recent torment- ridden automobile times (interest rate mania) and the heavy pressure being applied by the ever rising input costs and increasing competition, the Indian tyre industry is in high spirits. Of course, backed by the strong auto numbers projected in times to come. Cumulatively, the heavyweights like MRF, JK, CEAT etc and midsize & regional players plan to pump in more than Rs.70 billion over the next couple of years. A.K. Bajoria, President, JK Tyre, confirmed, “With the industry clearly on an upswing, JK Tyre is aggressively working to exploit the opportunities.” JK plans to invest Rs.11 billion; and CEAT Rs.8 billion. Foreign shores also beckon. Apollo did so last year with its African Safari, and now, the midsize player Metro Tyres recently set up its office in Barcelona to roll out its European voyage. The company already enjoys the lucrative European market through Continental AG of Germany. Rummy Chhabra, MD, Metro Tyres, told us, “With the start of our operations in Europe, Metro Tyres is taking a decisive step in establishing a platform for growth in Europe.” Of critical interest would be how these firms shore up getting more and more OEM contracts, the most profitable way to increase sales and earn profits. Keep rolling guys...


For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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