IIPM Editorial

Tuesday, January 11, 2011

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

Monday, January 3, 2011

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

Tuesday, December 28, 2010

NAVED CHAUDHARY, HEAD-MARKETING SERVICES, WYNN TELECOM

Well, will this portfolio expand over the year?
Well, without divulging too much at this stage, all I can say is that post the launch, we will be introducing four-five new handsets every month. We have a great product team in place and depending on the market response, we will finalise how to play up our product portfolio over the time. Like any other brand, our effort over a stipulated time period will be to push the envelope on the average selling price.

And where do you see Wynn Telecom reaching in market share by the end of this year?
All our plans are up our sleeves and we target to be amongst the top three Indian mobile handset manufacturers by the end of this financial year. We have a good product portfolio in place and we are looking at providing solutions to consumer needs in an efficient way by providing affordable and feature rich handsets. Furthermore, Wynn Telecom will continue to invest in innovation and be committed to provide value offerings to customers at affordable prices.

Are you looking at tapping a particular segment of the market?
We’re looking at pan-India operations and are providing product solutions to all genders and all strata of society. We are building a strong distribution channel; making inroads into the heartland of India is a priority for us as of now. In marketing parlance, we have a core target group of males falling in the SEC A and B category and in the age bracket of 15-29 years – including students and young executives – who are achievers and embrace modernity.

For all that, how big is your distribution going to be?
We are looking at over 500 distributors with a cumulative retail network of 25,000 outlets!

But you’ve not initiated your promotion campaign...
We are looking at immediately launching campaigns – BTL and retail activations are high on agenda. The larger brand campaign should start sometime in the mid of July 2010. I can’t disclose much about the campaign but our objective will be to break the clutter and to focus on how we do things innovatively and in a different way. We need to have a high share of voice with a lower share of expenditure within the category. It’s no more the survival of the fittest but survival of the smartest.

You have roped in Saif Ali Khan as your brand ambassador. What synergies are you looking to derive from this association?
We will be looking at leveraging the good part about the brand ambassador. Having Saif Ali Khan with us on board will help us in cutting across classes and masses. And yes, we will also surely ensure that the ‘Saif’ brand does not override the Wynncom brand.

Surbhi Chawla

Tuesday, December 21, 2010

HER BUSINESS? THE FUTURE OF YOUR FUTURE

Many international players are also entering into this field which means more competition.
Yes, eventually it does add to competition. But one of the advantages which we have got is content on cricket and Bollywood and these are the categories that have the potential of going global. We also have content which is appealing to the US and Australian market. And I am not just talking about non resident Indians here but also about mainstream consumers.

You were associated with the movie What’s Your Rashee as their astro partner? Did that association help? Do such associations help?
I think such associations increase the visibility of the brand. The name and theme of What’s Your Rashee was quite demanding and therefore we associated with it.

What are your plans in terms of marketing activities this year?
Our future plans for marketing are all geared up for the NRI market where web is concerned. We are also using short codes for towering with call centres. Thus, in an overall sense, we plan to increase our marketing spends by 30-40% this year.

Is advertising important in your field?
It is extremely important. Astrology allows us to engage with your customer through various ways and advertising helps us to connect with our consumers through each of the touch points.

As Told to Neha Saraiya

Tuesday, November 30, 2010

4Ps B&M meets the Marketing Head, Maitri Kuma, to get insights

You are one of the global leaders in this particular sector. How does this help you in your operations in India?
Our leadership position in financial services today gives HSBC the opportunity to take our brand from an “observational role,” i.e. understanding the world like none other, to a more “active role” that can help our customers navigate today’s interconnected world and leverage our local and cultural knowledge and understanding to inspire and enable our customers to reach their potential. It is for this reason that we recently launched our new brand idea, ‘HSBC helps you unlock the world’s potential’. Two factors – HSBC’s strong performance in the recent times and the increasing globalisation of the consumer mind-set – offer us an opportunity to move the HSBC brand forward in a differentiated, relevant and true way. By the way, we were one of the lead sponsors for the live online streaming of IPL3.

So are you saying that IPL3 in a way emerged as a new platform for marketing yourself?
HSBC’s association with YouTube for IPL3 was indeed a reflection of our belief in new-age media. HSBC as a brand has always been progressive and innovative and our investment in new media/technology only strengthens how we wish to portray ourselves to our consumers.

What role does technology play when you decide your marketing mixes and how does it help in the overall growth of a bank?
HSBC as an organisation has always been technologically advanced. HSBC’s thrust on technology has not only helped the bank grow, but it has also actively contributed to the modernisation of the Indian banking industry. See for yourself: HSBC gave India its first ATM way back in 1987. In 1985, it became the first bank to fully computerise its operations. In 1989, it became the first bank to have inter-branch and inter-city connectivity. In 1994, it became the first bank to provide online access to accounts and in 1995 it became the first bank to introduce off-branch ATMs. HSBC launched, for the first time, an Internet banking security device. It took online security to the next level. We believe technology is one of those key aspects that help us to stay in touch with our customers.

The ICMR-4Ps B&M Perception Survey ranks HSBC on top of all other foreign banks in India. Do you know how you did it?
HSBC is one of the most recalled and respected brands in the markets of its presence in India today. It is a clear reflection of the efficacy of its brand positioning and stature.

Monday, November 15, 2010

DOES ADVERTISING ACCURATELY REFLECT THE NEW-AGE WOMAN?

Has today’s advertising kept pace with scores of Indian women emerging from the shadows to seek their rightful place in society? 4Ps B&M presents various views

Ray, however, admits that she personally is prepared to go into this battle, anytime, any day! Theatre luminary Lushin Dubey switches lanes to offer a completely new perspective. “More than advertising projecting the ‘New Woman’, the New Woman seems to be totally seduced by advertising! She appears to totally believe, even celebrate the image that she sees... and this is both distressing and dangerous because it sends out the wrong signals. It implies that TV is this big hospital-cum-beauty parlour-cum-gym, where all shapes and sizes are photo-shopped and air-brushed to perfection! Scary...”

The last words must come from Omkar Sane, author (Welcome To Advertising. Now Get Lost!) and ad-tracker. “Actually, it’s because of the tainted windows, AC cabins and the advertising code for women established during the dark ages!” He points out that in the area of finance or healthcare, it is always the man who understands, applies and takes credit for the action while the woman sits and smiles. “Gul Panag didn’t talk too much in the Tata Sky ads, did she? It was Aamir who apparently knew everything and played a starring role.” Sane laments the fact that advertising “seems to wait for society to change and then show its spurs; while society, for its turn, hopes like hell that advertising will lead the way and effect the much-needed change.” Neither does that; and all one ends up doing is... changing the damn channel!

Well, if you belong to the club that thinks Julius ‘advertising’ Caesar is a brute, then friends, Indians, ladies, unite...

Monday, November 1, 2010

TALK TO THE HAND, HONEY!

With two new franchises being sold-off at world-record beating rates, Lalit Modi’s utterly raucous IPL takes leaps towards becoming the world’s largest sporting behemoth. Illogical? Yes, talk to his hand...

Whether it is the well-known Amby Valley knight or some unknown Special Purpose Vehicles, the real rub lies in the outflows that are bound to follow. Whatever the parties have spent so far is only for the purchase of the respective franchises. Now they have to invest on the players, staff, logistics and infrastructure. Starting September, the players’ auctions will restart, and Sahara and Rendezvous will be forced to shell-out some precious coins for purchasing players – whose values with each passing IPL are only going upwards. At the end of the day, building your team as a dominant brand poses the biggest challenge. While money might not be an issue in the case of Sahara, as far as Rendezvous goes, it sure has a rough uphill ride ahead.

Three years back, when IPL was born, Mukesh Ambani and Vijay Mallya paid Rs.441 and Rs.440 crores respectively to purchase Mumbai Indians and Bangalore Royal Challenger franchises. Many pundits had then questioned their vision, calling it nothing more than a mirage. On current terms, those figures look like Downing Street pennies. Although the first year was evidently a damp squib, both in terms of stadium spectators and television viewership, IPL turned into a trusted and successful sporting brand, turning profitable during the second year itself for both the BCCI and the franchise owners. Despite general elections forcing the entire tournament out of the country, brand IPL did not lose its glitter, thanks to some great advertising. According to market experts, IPL 3 will generate Rs.1000 crores in ad-revenues. Even in terms of viewership, IPL no longer looks a three-year-old infant. TAM reports prove how viewership has increased by 6% this season, as compared to IPL 2, with more than 67 million viewers watching the first three matches of IPL 3 in India alone. Yes, national viewership has fallen as the tourney has progressed. But with IPL matches being broadcasted live on YouTube for the first time, viewers in UK, US and Australia are showing keen interest in IPL.

Conclusively, one has to remember that finally, IPL is not just a sporting event, but a venture where investors like Shahrukh, the Wadias, Sahara et al are attempting to maximize their investments. One method to do that is to sell off the franchises to third party buyers, when the going rates are good. Another is to earn from their share in advertisement earnings of the IPL, which are pretty decent currently. But there is a danger of these ad-rates hitting the ceiling, which would therefore divert advertisers to other formats, as Sam Balsara, CMD of Madison World says, “IPL may turn into a Golden Goose. Due to overhype, the ad-rates of IPL slots are too much now. This may suddenly divert advertisers from IPL to other cricketing events. But at this moment, IPL is rocking!” As per a London-based brand valuation consultancy Brand Finance, the value of IPL 3 (at $4.13 billion) is twice that of IPL 2 ($2.01 billion). But is this growth a sustainable one? Brand Finance claims it is. And standing true to our sub-heading, Lalit Modi says, “IPL will become the world’s biggest sporting brand!” Yes, keep talk to his hand. Right now, it rocks!

Satish Chapparike

Monday, October 25, 2010

WHAT’S BUZZING THE BUZZ?!

The latest product and gadget launches that garnered the biggest brownie points with respect to the interest they generated in the market

SAMSUNG 3D FLAT PANEL TV

TECHNICAL SPECIFICATIONS:
• Touch of Colour (ToC)
• Design scheme
• Built-in ethernet connection
• Price: Rs. 130,000- 435,000 (LED), & Rs. 129,000- 186,900 (LCD)

MOVING TO THE BIGGER PICTURE: After FujiFilm launched its 3D camera last year, Samsung recently introduced the technology in its flat panel TV. With a built-in 3D video processor and 3D optimized panel, this product provides the best picture quality in its segment. Moreover, the wireless-ready capabilities and built-in ethernet connection elevate the overall consumer viewing experience.

Saturday, October 23, 2010

Accolades galore

Planman Media’s senior photographer Sujan Singh – already a winner of the CNN Young Photo Journalist award – has also won the best photo journalist award for the second successive time at the 15th edition of the glamorous fashion festivity, Wills Lifestyle India Fashion Week, held in New Delhi last week. The award was conferred by the President of Fashion Design Council of India (FDCI) Sunil Sethi and Atul Chand, Chief Executive Officer of ITC’s lifestyle retail business division, in an award giving ceremony during the fashion week at the NSIC exhibition arena foyer in New Delhi. The awards bring together all the fashion talents for an event filled with glitz, glamour and entertainment. Announcing the winners, Sethi said, “The aim behind the awards is to bring to the forefront the talent, grace and finesse available in our nation, representing the multicultural talent of India.” Sujan Singh has also been awarded recently the 2009 Outstanding Performer’s Award at Planman Media.

Monday, October 18, 2010

BIG LEAGUE OR NO LEAGUE

Moving up the value chain has been an aspiration for Indian IT brands for quite sometime now. Now it may well be deemed an unavoidable necessity!

WHY IS COST A RELIC OF THE PAST?

The first point that comes to mind is emergence of low-cost destinations like Philippines, Vietnam, countries in Eastern Europe et al. It is well known that they are proving to be quite competitive with Indian companies on the cost front. Moreover, as Diptarup Chakraborti, Senior Research Analyst, Gartner India, states, “Earlier, difference between US and Indian salaries was close to 100%; now it is just around 20%.” Moreover, it is imperative for them to move beyond the per employee billing rate system; else they risk hitting a revenue ceiling. Chakraborti gives the example of IBM’s revenues, which are 10 times that of TCS, with only 2-2.5 times the number of employees. Improving realisation per employee is absolutely imperative as companies like TCS plan to increase their size and touch revenues of $10-12 billion. An Infosys spokesperson tells us that the company has already started working in this regard. He says, “Infosys offers its clients two business models. The first is the outcome-based or transaction-based model, that offers its clients a value proposition where the rates will be irrelevant and the client pays only for the result the firm provides. The second centres around new opportunities caused by the shift in consumer preferences, where Infosys offers solutions in new platforms such as the mobile network and social networking sites.”

The real risk, in fact, comes from home ground. Sudin Apte, Principal Analyst, Forrester Research, elaborates, “We have to stop comparing Indian companies with MNCs. IBM now has around 80,000 employees in India and Accenture has around 60,000. Who are we calling MNCs?” India is a resource destination and no longer the exclusive domain of Indian companies. Mayur Sahni, Senior Market Analyst, IDC Asia Pacific puts it thus, “Cost competitiveness cannot be sustained unless there is an economic and/or business barrier. The economic barrier has been removed to some extent with global IT and technology players setting up operations in India.” The business barrier, on the other hand, links to the margin a particular player is willing to accept while negotiating a deal. According to industry buzz, when TCS won the deal for Malaysian Airlines, another overseas vendor claimed that the price TCS had offered was below their cost! But then vendors like IBM also pay higher salaries, making them more attractive to top talent. So this age-old bastion may not last very long either.

Consider, in addition, the phenomenon of protectionism. Admittedly, that isn’t a real worry, since companies have begun to accept offshoring as an inevitability. As Chakraborti cites an example, “Let us say that Exxon Mobil suddenly decides that we will do all IT in-house, while they don’t have the capacity. It will take them 3-5 years. What will they do in the interim?” So, if outsourcing is stifled, it will hurt them more. But it is also true that these debates do weigh heavy on client perceptions, while going for deals. In a recent NASSCOM conference, Pramod Bhasin admitted that this was one of the key reasons why Indian IT companies were going for on-site hiring.