HOW SHOULD WE LEAD DURING TOUGH TIMES?

When your organisation is in trouble, how should you act to ensure that positive change comes about? Simple – follow the six principles

4Ps Business & Marketing, in a strategic alliance with the new york times service, presents a column by howard Schultz, Chairman, President and CEO of Starbucks corporation

None of us have it easy these days. The rickety global economy, shifting geopolitical landscape and fast-paced changes in consumer behaviour and technology continue to test leaders in businesses and governments around the world.

Whether you’re a boardroom executive or the manager of a small staff, an entrepreneur or a politician, the challenges we all face as decision-makers are far more complicated than beating last quarter’s performance or being first to market. Today’s issues are matters of long-term survival, requiring significant changes to how private and public organisations operate.

Our respective challenges are similar in magnitude but definitely not in nuance, which means there is no single path to follow. But I believe there are principles that can help any leader navigate through tough times and not just survive, but thrive.

1. PURSUE PRIORITIES WITH LASERLIKE FOCUS
No one organisation or leader can be all things to all people – especially in times of crisis. Don’t even try. Multiple problems are almost impossible to solve simultaneously. Get ready to make tough choices by first identifying and then sequencing the things that are most critical to the organisation’s ongoing success. Next, commit to them in words and behaviour. Speak and write about the priorities every day to everyone. Develop tangible actions to bring each priority to fruition.

One, two or three goals pursued with intense focus will have more power than a dozen random ideas launched to see which might stick.

2. CREATE AN “AGENDA” THAT EVERYONE CAN UNDERSTAND AND ACT ON.
Widespread change requires widespread understanding of what needs to get done. Hundreds, if not thousands, of people must support leaders’ priorities with each decision they make. To do so, people need an easy map – a vision that says in plain language, “This is what we are going to do, and this is how we’re going to do it.” Forget the elaborate PowerPoint presentations and aim for a short document that forces leaders to articulate their priorities with precision. This “agenda” should fit on a single piece of paper that can be hung above a desk or carried around. It should be short enough to be viewed in a single screen shot on a phone or computer. The more accessible the plan, the easier it is for others to get behind and follow it.

3. MANAGE WITH EMOTION
In times of uncertainty, people get scared. They are hungry for leadership and desperately want to trust that the people they look to – a manager, a CEO, an elected official – understand their fears and will use sound judgment to find answers to serious problems.

Put yourself in the shoes of customers, employees, citizens or constituents to sincerely empathise with their situations and get the perspective needed to find realistic solutions. Then stand in front of people and talk truthfully about what you see, hear and hope to achieve. Restoring trust requires a personal touch.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies

GOAFEST 2011 ; AND WHAT THE AD WORLD DID THERE

The Goafest 2011, from April 5 to April 9, 2011, was a five-day journey full of fun. The one day extension to the fest, a proper venue instead of a beach, an ASCI pledge on Day 3 for all the ad caliphs, a jury that claimed to be fairer than ever before, a professional international auditor in the screening of creative entries before the final awards were announced, and a concept introduced to award green communication, all these facets do classify as the ‘new’ elements that did their bit in adding verve to India’s top (and only?) fest amidst the scorching heat. Speakers like Sam Balsara, Chairman & MD, Madison World who held a discussion with media magnates like Ashish Bhasin, Chairman, Aegis Media and Arvind Sharma, Chairman & CEO, Leo Burnett, on the upside of advertising, added to the intellect factor. But the zenith of the five day fest was the Creative Abby’s Awards night, which brought together stalwarts from the adland to rejoice the exemplary creative communication that made the highlights for last year. Clearly, while Cannes Lions is the centre of the international universe for many international ad professionals, Goafest is holding its own on a national scale, and each passing year is only adding to its repertoire of events.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS

Does it Still Get your Gut?

When they Start off their Ventures, Most Entrepreneurs look to take them to The Pinnacle of Success. Then what Makes them quit them Midway and Chart a new Course?

25 years ago, Ram Chander Aggarwal never thought that his dream venture would be sold off. During his earlier interaction with 4Ps B&M way back in 2005, he expressed his extreme exuberance regarding the growth of his company - Vishal Retail. In 2005, the company achieved a net profit of Rs.30 million from Rs.2.62 million in the year 2001. Vishal’s manufacturing-to-retail business model was widely applauded and feted... even till 2008.

But the slowdown, financial deficit and rising real estate costs caught the brow beaten Vishal’s operation, and the group finally sold off the entire business to US -based private equity fund TPG Capital. Vishal Retail received Rs.700 million through the slump sale approved by Delhi High Court. It was one of those terrible retail debacles that shocked the entire industry in that period.

Nothing should hurt a founder more than selling off his entire venture. But, both the emotional and business aspects differ from business to business. For Ram Chander Aggarwal, managing the financial deficit was a problem and he’s now looking for new business opportunities. For Capt. Gopinath, it was the difficulty in managing the low cost aviation model. In the same league, when Malvinder Singh sold off Ranbaxy, he commented to 4Ps B&M that he has learned from his father to move on for newer opportunities if the existing one is becoming an obstacle. It shocked the Indian corporate world, but the Singhs would be quite satisfied with the decision.

The well known British business woman, environmentalist and human activist – Anita Roddick, was already afflicted by a deadly disease when she sold off her brand – Body Shop – for £652 million to MNC giant L’Oreal. Her declining health was a major reason for her to sell off the brand. After the sale, she likened her position to that of a ‘Trojan horse’, who, by selling off her business to a large firm, wanted to secure the brand.

“In case of Anita Roddick & Body Shop, selling off the brand gave an insurance to the brand. Competition often makes it difficult to sustain with a brand,” feels Ramesh Chauhan, Chairman, Bisleri International. In the early nineties, he sold off his brand Thums Up to cola behemoth Coca Cola for mere $60 million. The pressure that came from both the cola giants compelled him to do so, and he moved on to focus intensively on the bottled water business. Now Thums up has emerged as a cash cow for Coca Cola, but does Chauhan regret letting Thums Up go? “At that point of time, creating the distribution network required for Thums Up was difficult and then, focusing only on Bisleri helped me to create a generic brand,” feels Chauhan. Like Chauhan, Sumeet Nair also sold off his creation – the country’s first fashion week – to HUL’ s Lakme and later created more such fashion weeks like Wills Lifestyle Fashion week and others of their ilk. So do these entrepreneurs lack the patience and vision to sustain a brand in the face of competition?

It’s not always lack of vision. At times, selling a brand without compromising on the ownership also helps in massive expansion. For the country’s leading apparel exporter Gokaldas Exports Ltd., the promoters sold off 68% stake to US-based PE firm Blackstone Group. Post expansion, the company possesses 46 factories spread across 45 locations and is manufacturing more than 2.5 million garments per month. The Hindujas still enjoys a 20% ownership in Gokaldas. But for Delhi based Fun Foods, although selling off the business to a German MNC resulted in proliferation of the business, the original promoters had to bid adieu to the brand. For the founders Rajiv Bahl and his son Viraj Bahl, an offer of Rs.11 million (more than 3 times the actual sales of Fun Foods at the time of acquisition) was too lucrative and as 30 -year old Viraj points out, “Holding a business in the long run might not always be profitable for a promoter and then, the experience gained in one business definitely creates the key-stone for another business.”

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS

Of Product, Price, Pizzas & Pastas – The ‘30 Minutes’ Story

From its Early days to Creating a Strong “On-time Delivery” Recall, Domino’s Journey in India was a Case Study Screaming to be Documented. And we Did!

It seems a little like love when you see a half-starved teenager dive into the warm square-foot cartoon package, delivered-and-promised within half-an-hour. For Domino’s, the joy is mutual. 70% of all pizzas that are home-delivered in the country end up contributing to the coffers of this quick service restaurant (QSR). In fact, one out of every two (non-home made) pizzas that are consumed in any part of India, is a Domino’s-baked product. Numbers are enough to prove how dominant a force this brand has become in India. But here’s the real surprise: For Domino’s, the flight apparently is yet to begin.

Domino’s (in reality, Jubilant Foodworks; the company managing the show) considers the domestic market to be the most important in Asia. It’s rare that a US-based $1.57 billion-a-year sales generating multinational giant chooses to bet bigger on a country other than China. But this is true. Blame the company for being over-optimistic if you may, but what it is betting heavy on is the rising clan of middle-class and the youth segment which forms a large percentage of the Indian population. And considering the rising levels of conspicuous consumption and economic conditions, Domino’s is hoping its calculations are right. The Indian market is already amongst the top 10 contributors to Domino’s global topline. J. Patrick Doyle, Global President & CEO of Domino’s Pizza told 4PsB&M during his last visit to India, “By 2014, we expect India to be amongst the top five earners – and our plans to achieve this goal are in action with new launches.” With the QSR market in India growing at 25% and with 26,000 pizzas being sold per day in India (as per CII; FY2010), Doyle may be hitting the right spots in his forecasts.

To their credit, the present times represent a solid growth phase for Domino’s. A CAGR of 40% (which Domino’s has in India) in any market is considered obscenely high. And the fact that it is the market leader in India is even better news for the company. But victory for it has come at a price – more than a decade of toil. In fact, some talk about how Domino’s learnt the secrets to success in the Indian market the hard way, right from its very early days in India (when McDonald’s initially stole the show with its easy-on-the-pocket menu). Its first outlet was opened in January 1996, in New Delhi. Then, the concept of home delivery was still in its nascent stages in India. It wasn’t easy work for Domino’s to inculcate the home delivery concept in a market where eating out was only restricted to branded restaurants. But the company managed to put in place an integrated home delivery system never before seen in India.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS

The man who sells MTV Roadies. Well, literally!

Sandeep Dahiya, SVP, Consumer Products & Communications, viacom 18 tells 4PS B&M about the Dynamics of The Business he heads and how The Company is driven by heavy Market Research.

With India’s most celebrated entertainment channels — MTV, Colors and Nick — under its banner, Viacom 18 has been successful in making an indelible mark on the Indian entertainment landscape. The consumer product division has become an important stream of revenue generation for the group. In an exclusive interaction with 4Ps B&M, Sandeep Dahiya, SVP, Consumer Products & Communications talks about MTV, Indian youth centric channel, and his strategies for the consumer product division.

What is the basic rationale behind having a consumer product division? What are the synergies that Viacom 18 derives from this division?
Primary responsibilities of a consumer product division includes licensing and merchandising. We have complete faith in our broadcasters as they are the brand builders. So, MTV is not only a channel but a brand. Sponge Bob, Dora, Ninja are not just shows but brands in themselves, they are characters, which people want to own a piece of and are ready to pay a premium for the same. This is what makes it worth having a consumer product business. The division was launched three years back and today, there are more than 30 licenses who manufacture and sell Nick or MTV branded merchandise. We derive royalty from the same. This move helps us in two ways­- first, it’s a revenue-generating model and second, it’s a great way to connect with the viewers and also ensures consistent fan following.

If we look at Disney, they’ve got some cult characters. Timeless would be the appropriate term. And so the merchandise business. It makes a lot of sense to merchandise Nickelodeon characters. But do you think the same would work for properties on Colors and VH1?
A lot depends on which property a channel wants to use for merchandising. Licensing can be broadly classified into two parts – sustainable licensing properties and topical licensing properties. The former are called Transits and are ‘timeless’. Mickey Mouse is one such example. The latter (topical merchandise) come and go. For example, Iron Man or Toy Story come up with a movie, they may or may not produce the second installment. Therefore, such topical merchandises are seasonal. In our case, we can’t have merchandise of fiction shows like Balika Vadhu. The story revolves around a child protagonist, who will eventually grow up. Moreover, there is no stability in fiction shows, story lines change everyday. You can’t plan a merchandise on it. But, we can have merchandise such as adventure gear around shows like Big Boss. Stability is integral to successful merchandising.

What is your distribution strategy? Do you plan to set up exclusive stores in India?
We don’t distribute our products and that’s not our model. We are good at creating brands and content. Once the brand is strong placed, we conceptually co-create and monetise the model by tying up with partners in the value chain. As for the exclusive stores, we don’t do that either. We can nevertheless license it out. The idea is not to set up an MTV store but to license the format, in case someone does want to set up one.

Why is the distribution of your products are so limited? Is it done deliberately?
I don’t want our products to be available everywhere. For example, Roadies footwear will not fit into a Bata store, but it will definitely fit into a Shoppers Stop as an entire area is dedicated to our brand. Moreover, the ambiance there would be much like Roadies. It is a deliberate attempt to keep our products exclusive to some stores.

The Indian youth has perhaps evolved in a very unbalanced manner. At one hand, they look at their Western counterparts and on the other, they have a lot of opportunities, which give rise to aspirations. So, how do you keep a tab on this particular segment?
I think we are one of those few brands, which have an extensive focus on market driven research. If we want to be a step ahead of the youth, then we need to know three days before what they’d be doing three days later. For this, we come up with a heavy dose of qualitative and quantitative research every year. We have mobilised a lot of focus groups, so that we know in real time what the youth prefers in terms of latest trends in college to how fashion is being defined. The Indian consumer has definitely evolved, but despite earning and spending so much, they haven’t stopped looking for value-based products. So, if we are to sell an MTV branded Micromax mobile, it has to be true to the Roadies image. If it’s similar to four other models available in the market, it’s not going to work out in the market.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS

AD-Land's Latest Toing …Statistics?!

What’s with The Numbers game in Adville, Guys? 4Ps B&M tries to Cut in on this Bizarre new Game in Town!

Hey, don’t get naughty ideas, okay? Toing is not that … but fixation, obsession, hot focus. And statistics (or stats, as they say) does not stand for vital or Pam Andy, but clinical numericals, got it? Jeez, we seem to be living in real sinful times when everything is put under the scanner, laid bare … and – forget it!

Okay, let’s get serious. In recent times (more than ever) stats are being yanked out to sell, promote, inform, educate, hype, persuade … wassup? Two minutes of brushing with Pepsodent removes 95% germs! Listerine announces that your tooth brush reaches only 25% of your mouth! Ek Minute is what Surf Excel takes to wipe off dirt from your clothes! One pack of Maggi wheat flour noodles is equal to 3 chapatis! Fair & Handsome promises gorapan in 3 weeks, while Pond’s White Beauty Cream offers flawless skin in 7 days. Rival Olay declares that it fights 7 signs of ageing, while Head & Shoulders announces 7 Scalp & Hair benefits! Wow, kinda hair-raising, huh?

“Not really,” says Head honcho of Virus Communication, Rupam Bohra. He believes all this is happening because there is a huge bankruptcy of ideas “and this reflects dramatically the troubled state that the Creative frat are in, in today’s Ad scene. They are under huge pressure to constantly perform and deliver in a fiercely competitive marketscape with clients looking for results – and no corny, pseudo-creative, edgy crap, please! Now, in a space where everyone is desperately wanting to be bigger than China, confusion can get confounded! Result? Transform emotion into numericals!’’ He is convinced that it is a sign of desperation and recalls a recent meeting with a client who valiantly tried to convince him that “my products, when consumed/used, are bound to make the consumer 30% happier!”

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS

Nothing succeeds like innovation

Sales was his first love before he made a career in the broad spectrum of marketing. Vipin Tuteja discusses his success mantra with Virat Bahri & Shephali Bhatt

Vipin Tuteja Executive Director, Production Systems Group, Xerox India

There is one particular challenge that one faces when conversing with Vipin Tuteja, Executive Director, Production Systems Group (PSG), Xerox India. And that is making him talk about himself and his achievements! According to his perspective, Xerox is not a company that’s driven by an individual. It’s a team effort at the end of the day.

Five odd years in Xerox have been an exciting phase for Vipin, as he has been instrumental in enabling the transformation that Xerox has been going through in that period from a product centric to a solution centric company in the arena of documentation management. Ironically, the overwhelming strength of Xerox in the photo copying business and the generic nature of the brand name made it extremely hard to make the positioning shift. In an interaction with 4Ps B&M, which took place at the ITC Grand Central, Lower Parel, Mumbai, Vipin opines that the shift has been largely successful as he says, “We are today seen as a complete solution provider to the document need or the document management need of any organization. It is not to do just with the printing of a document in any organization. Rather it has a lot to do with how we can help in increasing the effectiveness of the communication within the organization.” Xerox now advises clients on how to make communication more effective and how it can be used to cross sell and up sell; which will lead to greater benefits both internally and externally. Vipin is in charge of deployment and implementation of the PSG portfolio, which includes colour and mono equipments and the digital colour publishing business in India. Going forward, he believes that the growth of Xerox India in the next five years will hinge greatly on how they can leverage on their solutions approach and how the other aspects like channels, technology, training, strategy, et al will work together. The company has also identified 3 key verticals for its future – telecom, insurance and banking.

Vipin Tuteja is a commerce graduate from Delhi University and did his MBA from Faculty of Management Studies (FMS), New Delhi. His career started with American Express, when they were launching their first Indian rupee card. American Express is a company that he deeply admires for its marketing. His experience spans a long 25 years which included an earlier stint at Xerox as Sales Manager (1984-92) and as Associate Vice President – Field Operations at Ricoh India Ltd. prior to rejoining Xerox. He was a part of the Xerox Honours Club and Grand Slam trips every year for his performance in those earlier years at Xerox. At that time, sales and marketing were considered two separate departments that worked in silos and marketing traditionally revolved primarily around events and advertising. He was one of those executives who led the transition to a paradigm wherein both could be effectively leveraged together; something that is taken for granted in today’s marketing world. Another change he points out to is the sheer depth of information that is available in real time today thanks to the Internet. While it makes it easier to access the strategic developments taking place across the world, it has also made the world much more competitive.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

Flirting with the vantage point!

A well thought out and executed launch has enabled Ford India to change its fortunes dramatically in India. Nigel Wark goes through the ride with Sanchit Verma

Nigel E. Wark
Ford India, Executive Director, Marketing Sales & Service

My role,” feels Nigel E. Wark, the man behind the marketing and sales for Ford India Region. One should say the man behind why Figo reached the stature at which it stands today in the Indian market. He credits his success to the support he received from the team at Ford India, including Ford India’s President & MD Michael Boneham.

A Bachelor of Economics from Flinders University, Australia, Nigel E. Wark came to Ford India as Executive Director, Marketing & Services, in 2008 with the backing of a rich experience of selling and marketing products across 12 different diversities globally. He has been successfully driving and managing Ford India’s rapid growth, which has led to a third phase of capacity expansion for the company. The task at hand keeps him extremely occupied and longing for a bit of fresh air every now and then.

India is indeed a challenging market where one has to deal with tremendous diversity; in terms of differences in religion, region, languages, cultures, et al. Before coming to India, Nigel had worked in many other countries in Asia – Vietnam, Thailand, Malaysia, Indonesia and to a lesser extent, China and Japan. He feels that the sum of all the diversity that he saw in those countries is wrapped up in India alone. How does Nigel manage to handle them all for Ford? He gives his take succinctly, “I don’t believe in averaging.” In other words, Nigel doesn’t believe that there is one approach to marketing that fits all. Yes, a brand positioning needs to be done, and yes, the market place will show the way eventually. But there is a significant difference in different regions and for the success of the product, Nigel feels that the easiest way to comprehend the market is to have a look at the market shares and the leaders of the different segments and look at what they did right or wrong.

Under Nigel’s command, Ford India achieved ‘big’ even as it went ‘small’ with Figo. The company posted an impressive sales record this year by clocking around 7,925 units in August, which is three times higher than the total reported sales in August last year. Brand Ford has scripted a remarkable success story since Figo was launched in March this year, as it remains a hot cake for the company – even 25 weeks since it was introduced. Nigel took the complex responsibility of creating the brand and changing the perception of Ford India, and he did this by believing in going ‘right through the basics’. “You can really make the business complicated or you can simplify it and try to get it right in the simplification process – and Figo was the pro duct where we actually made the market understand the product right,” he comments quite proudly. Nigel had started the research for Figo almost 3 years ago. Ford started researching on the customer base for the segment in question to understand the gaps to be filled. Research teams spent a lot of time with customers to know what they liked, what they did as far as entertainment was concerned, how they spent their weekends, what they watched on television, movies, internet, et al. And once the customer profile map had been generated with precision, the part about positioning the product in the consumer’s mind became much easier – and more effective too.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

THE ART OF MAKING AN AD – THE ANURAG BASU WAY!

USING A HIGH IMPACT MULTI-MEDIA CAMPAIGN & THE STAR POWER OF RANBIR KAPOOR, NISSAN RECENTLY LAUNCHED ITS A2 SEGMENT MICRA FOR URBAN INDIA. 4PS B&M GIVES THE INSIDE VIEW OF HOW THE AD WAS MADE AND LAUNCHED

A few months back, when Nissan planned to launch its Indian A2 hatchback – Micra – the challenge for the company was not only to make a dent into the overly cluttered segment but also to set the stage for A long term impact. After numerous pitches, the auto major assigned the campaign to TBWA India.

The target group in question was the 28-35 year old working professionals with families in the SEC A & B segments. After some intense brainstorming, the creative team decided to rope in Bollywood star Ranbir Kapoor as the face of the brand, given his connect with urban audiences. Micra was positioned as an “Urban Simplifier” – a car that eased the hassles of city driving – using a high impact multi-media campaign. The commercial was conceptualized by Rahul Sen Gupta, National Creative Director and Rahul Ghosh, Creative Director, TBWA India. The power idea was to show Ranbir demonstrating the novel features of the car – including the I-key, push button start, short turning radius, fuel efficiency and spacious interiors. While the production house for the commercial is Red Ice, it has been directed by well known filmmaker, Anurag Basu.

Micra’s TVC was shot on a very tight schedule of 36 hours in peak summer. The commercial was partly shot in Mumbai and in some parts of Delhi over a period of six days in two separate schedules. Interestingly, Ranbir’s presence did not create much of a stir on shooting locales in Mumbai, but Delhi was a different story. Nirmalya Sen, MD, TBWA India reveals, “On the last day of the shoot at Delhi, a large crowd had gathered at the location; as a nearby mall, in order to generate high footfall on its premises, announced on FM radio that Ranbir would make an appearance. This led to a large unmanageable crowd and even made us hold up shooting for a while.” Fortunately a thunderstorm compelled the crowd to disperse. Ranbir was highly involved throughout the creative discussions and many of the improvisations in the commercial were contributed by him. Most of the pre and post production work was also carried out in Mumbai. The background score has been composed by Vipin Misra. So far the response is overwhelming, which is quite evident from the increasing bookings for the Micra. The TVC will be continuously aired for the time being to generate awareness and customer walk-ins. Ranbir’s pull factor seems to have worked. Now it’s time for Micra to weave its magic.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

WE ARE IN FOR SOME SERIOUS FUN IN THE CONSUMER DURABLES SPACE

Giraj Sharma, Director, Behind The Moon Consultants

The success of LGs and Samsungs in India as against the lukewarm performance of other global giants such as Panasonic, Hitachi, Canon and Toshiba in the consumer durables industry is fodder for many debates. Often we find these debates converging to the old track of the Koreans approach versus the Japanese. I don’t think there is an approach to business that can be termed as Korean or one which can be called Japanese. As the world becomes more complex, the integration of work cultures have actually brought us to a point where we can not attribute strategic abilities to the nation of the origin of the company or the location if its headquarters. Doing so would actually amount to trivialising the entire issue and would add a lot more complexities.

Let me present another argument in support of my claim. Consider this: Look at automobile sector and just look at what the so-called Japanese brands have achieved here in India. Look at the role Suzuki (as Maruti-Suzuki) has played in the four-wheeler market in India and look at what the Toyotas and Hondas of the world are now doing here. Check out what Honda has done with two-wheelers (as Hero-Honda and as Honda on standalone platform).

Well coming back to the consumer durables space, it took some time to Sony to realise that just a ‘Made in Japan’ label would not suffice to cut ice with the new Indian customer who was perhaps as discerning as his or her European or American counterpart. The urbane Indian customer has high aspirations, but at the same time he or she displays an earthy value consciousness. This is the customer that the auto majors cater to and that too aggressively. As of now, Sony seems to be addressing to this customer pretty well too and it is not snooty any longer to ignore the large consumer base that exists in the form of households with modest income levels, a segment that was perhaps a complete no-no earlier. Sony is a force to reckon with in the flat-panel-display market (LCDs/Plasmas/LEDs) and sells decent numbers of home-theatres and music component systems. The other brands from Japan ignored the rising aspirations of this value conscious generation of Indian customer. All that is expected to change soon though. These players are reworking their strategies now and looking at India in a manner that a market of this size and potential deserves. Product offerings, prices, advertising (selection of brand ambassadors included) are being tweaked with as new strategy constructs are being worked out in a never before manner.

Now let’s look at the other end of the spectrum. It comprises of LG and Samsung (Koreans particulalrly) who have worked their way up in the Indian market admirably. And unlike what most pundits will have us believe that the story of their dominance does not hinge on price competitiveness at all. As a matter of fact, both LG and Samsung now price their products reasonably high and almost at par with the likes of Sony or an American Whirlpool. These brands, and LG in particular, have got their basics right and bang on time. They have developed robust trade channels which they service very well and have a dynamic approach to their product portfolios – replacing successful models with newer and more technologically advanced versions. This is akin to something that a Toyota did in India with Qualis. They have invested in their people heavily and have empowered the teams sufficiently to ensure their response to the needs of the market (the trade and the consumer) is super-quick. They have huge infrastructure to demonstrate their commitment to this market and not only they have world-class manufacturing facilities to boast off, they have also developed and nurtured dedicated vendors who add efficiently to the value chain. But whatever it is, one thing is sure that we are in for some serious fun in the consumer durables space and the lot is more to come!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

IIPM in sync with the best of the business world.......

Cover Feature - UNNI KRISHNAN, MANAGING DIRECTOR, BRAND FINANCE INDIA

Strong brands impact both the demand and supply curves to add value to the business. On the demand side brands enable a product to achieve a higher price at a given sales volume. Strong brands can also increase sales volumes and churn rates. Brands also establish more stable demand, through their relationship with consumers. They establish barriers to entry. The relationship with consumers is due to both functional and emotional attributes. On the functional side brands ensure recognition and further aid the purchase decision through a guarantee of quality. From an emotional perspective they satisfy aspiration and self expression requirements. A further benefit of strong brands is the ability to transfer the equity or values associated with a brand into new product categories.

On the supply side, strong brands have the ability to shift the supply curve downwards due to the following reasons:

• Greater trade and consumer recognition and loyalty. This results in lower sales conversion costs and more favorable supplier terms.
• Lower staff acquisition and retention costs.
• Lower cost of capital.

Long term value creation potential of the brands needs to be articulated by the management to the shareholders. Brand value added depends upon the differential advantage the brand offers, market economics and the ability of the management to unlock the brand value by objective based brand strategy whose purpose should be to maximise shareholder value.

Brand valuation helps the management to articulate the value of brand through balance sheet reporting which is mandatory as per IFRS 3 and it also plays significant role in merger & acquisition activity. Shareholders are increasingly keen to know the value of specific intangible assets as well as tangible assets being acquired.

The challenge to the senior executive teams is to demonstrate that brands are business assets capable of generating superior economic returns for their shareholders and worthy of multi-year investment commitments in New Product Development, R&D, Distribution and People.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

Best Launches - BMW Z5 (SUV)

BMW Z5 (SUV)

TECHNICAL SPECIFICATIONS:

• 3-5 litre V8 engine
• 164kw/298kw @6600 rpm
• Price: sub Rs.30 lakhs (Ex-showroom Delhi)

TORNADO DESIGN: Although the Z5 existed abroad for many years, it had never been introduced in India, that is, till now. BMW is about to launch the astoundingly stunning SUV in India, which almost could have been a car but for its tastily raised high roof design. The 500Nm torque drives in a pure thunderous appeal, especially while accelerating 0-60 mph. Said to have borrowed some concepts (like tail lights) from the X Coupé concept, the Z5 is a sureshot buy.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM B-School

Arindam Chaudhuri

Rajita Chaudhuri

Planman Consulting