Back to the drawing boards

IIPM Prof Arindam Chaudhuri on Our Parliament and Parliamentarians' Work

DTH players were on a dream flight in India so far, but the delay in rollout of Phase II of CAS has dampened expectations. vareen gadhoke ray & surbhi chawla discuss the upcoming trends and how DTH players can make them count

When Direct-to-Home (DTH) first came along, it brought the promise of streamlining the highly fragmented pay-TV market in the country, which had hitherto been the stranglehold of local cable operators (LCOs). All that the players really had to do was conquer, which they continue to do, through mud-slinging, comparative advertising and even some cheap ground level tactics. DTH was a very welcome platform for broadcasters and media houses, which were fighting these LCOs on the grounds that they were not declaring their total subscriber base. The launch of the first phase of Conditional Access System (CAS) brought more transparency, thereby aiding higher yield in subscription revenues. But the launch of the second phase of DTH, which was to make CAS mandatory in more areas of the country, has been delayed quite unexpectedly. This has stymied their dream run, and slowed down their onward march quite considerably. In such a scenario, what does the future portend for these players in India?

DIRECT TO HELL OR HEAVEN

The future of pay-TV in India is being driven by media owners and distributors, which are expanding market share with an eye on profits, rather than at the expense of profits. The major concern for this sector was that at a very nascent stage, seven major players (Dish TV, Tata Sky, BIG TV, Airtel Digital, Sun Direct, DD Direct and the newly launched Videocon d2h) along with organised CAS operators (like Hathaway and Sify) were slugging it out to get the maximum share of this growing pie. As a result, the first phase of growth saw the basic DTH box being offered at a subsidy, and at times, even virtually free of cost to catch hold of the early adopters and get them to experience this new wave of technology. The plus point of this can be seen from the fact that the Indian pay-TV sector generated sales to the tune of $6.5 billion for financial year ending March 2010 [Media Partners Asia (MPA)].

However, thanks to the continously intensifying tussle among the players, the sector is facing the same fate as the telecom operators. DTH players too are unable to garner as much in ARPUs. The tempering of their enthusiasm due to delay in Phase 2 rollout make it worse.

Yet, all is not lost. As per projections by MPA, the industry is expected to touch $12.1 billion by 2014 and $18.5 billion by 2020. In terms of volume, broadcasters and LCOs are most likely to lead in the long-term, while LCOs and cable multi-system operators (MSOs) will lead in terms of margins. Vivek Couto, Executive Director, Media Partners Asia, avers, 'Cable MSOs will probably face the most challenging future. Nonetheless, most national MSOs will be able to forge stronger last-mile links with the consumer for the long-term, with positive implications for future funding as well as large-scale deployment of digital pay-TV and broadband.' Furthermore, Indian pay-TV subscribers are expected to grow from 105 million in 2009 to 149 million by 2014 and 173 million by 2020.

THE TECHNOLOGY GIMMICK

On the question of who will make money, differentiation in services and products would help in 'unlevelling' the playing field. The next wave of growth for DTH would undoubtedly be paved by superior technology and advanced features, not to mention high quality content. Even in the developed countries, technological advancement is helping drive the next phase of growth. 'As a matter of fact, in UK, almost 60 per cent of all DTH boxes are DVR boxes and the expectation from the Indian market is huge,' shares Alan Dishington, GM, NDS India. The silver lining for the operators is that the digital video recorders (DVR) or the HDTV boxes that are being offered are not massively subsidised. 'The launch of Reliance Big TV HD DVR is part of Reliance Big TV's relentless pursuit of quality and profitable growth by blending the best in technology, content experience, reach and service,' says Sanjay Behl, CEO, Reliance Big TV.

But this can also become a me-too game in some time.

Content exclusivity will be another important game changer. Sanjiv Kainth, country manager, India and South Asia, IRDETO, agrees, 'There has to be a certain amount of exclusivity of content allowed to fuel competition and differentiate product offerings of the various operators... else it will be difficult for the ARPUs to increase.' Understandably, content providers are quite upbeat about the new opportunities that have opened up in this sector. A case in point is the upcoming FIFA World Cup and how Tata Sky, Sun Direct and Dish TV have already announced tie-ups and promotional packs to cash in on the greatest football jamboree. States Jawahar Goel, MD, Dish TV, 'We've strategically timed the launch of our HDTV box to coincide with FIFA. Later, we also plan to get Commonwealth Games on the HD platform.'

A DIGITAL QUAGMIRE

Being a low ARPU and cost sensitive market, the addition of new subscribers is very important for the growth and sustainability of the DTH business in India. However, the subscriber churn is of high concern to all operators. DTH operators are focussing on innovative offerings for better retention and ARPUs. Adds Salil Kapoor, COO, Dish TV, 'In the last two years, we've been working very hard to deliver quality service. '

The pay-TV market is not something, which will remain static in the long run. The growth will be fuelled not only by the new subscribers but also by the existing ones who migrate to a higher level of services. India is a huge market and the volumes will be there for some time to come. While the Phase II delay does affect their plans, DTH players will have to win their battles on technology and content.

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

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Terror regroups

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The army might have uprooted many militant groups operating from Pakistani soil, but it has not deterred terror outfits from regrouping and striking back, writes Shahid Husain

The attack on Lahore's Jinnah Hospital on May 31 by the militants in an attempt to free their wounded fellow Moaz alias Amir Moavia, who was being treated there, amply demonstrates that malignant aggression has penetrated deep in Pakistan society. Moavia was injured during a recent attack on two worship places of the Ahmadis. The Ahmadis are considered religious outcasts of sorts by almost all the Muslim religious factions, though the Pakistan Constitution asserts they are equal citizens.

One of the Pakistan's top defence analysts, Dr. Hasan Askari Rizvi, explains the phenomenon and thinking behind the attacks in a conversation with TSI, 'The attack on Ahmadis puts forth two things: First, it was a soft target that the militants used to assert their ability to challenge the Pakistan state and the provincial government; secondly, it also relates to the extremely negative sentiments the orthodox Muslims have about the Ahmadis,' He adds, 'The militants must have thought that the people would sympathise with their action, which was actually the case.'

A large number of fundamentalist groups have cropped up in the impoverished Pakistan since 2001. Links between many of these new and existing groups have strengthened, say experts, giving rise to fresh concerns for stability. Successful army operations against the militants in Swat and South Waziristan under the leadership of General Ashfaq Pervaiz Kayani have forced militants to re-group themselves and co-ordinate with each other in more ways than one' be it in terms of logistics or collection of funds. Leadership elements of al-Qaeda and the Afghan Taliban, along with other terrorist groups, have made Pakistan's tribal areas their home and now work closely with a wide variety of Pakistani militant groups. They find many sympathisers amongst the educated middle and upper middle class.

Hassan Abbas, a fellow at the Asia Society, writes that Punjabi Taliban network is a loose conglomeration of members of banned militant groups of Punjabi origin that have developed strong connections with the Pakistani Taliban, Afghan Taliban, and other militant groups based in FATA and the North-West Frontier Province (NWFP). The Punjabi Taliban provide logistical support for attacks on cities in Punjab province and include individuals or factions of groups such as Jaish-e-Mohammed, Sipah-i-Sahaba Pakistan, and Lashkar-i-Jhangvi and their various splinter groups, along with small cells unaffiliated with any large group. The Punjabi Taliban are distinct from the traditional Pashtun Taliban, experts say. They are usually more educated and more technologically savvy.

Since there is also greater coordination between all these groups, say experts, lines have blurred regarding which category a militant group fits in. For instance, the Pakistani Taliban, which were committed to fighting against the Pakistani state, are now increasingly joining insurgents fighting U.S. and international troops across the border in Afghanistan. U.S. Central Command Chief General David H. Petraeus, in a CFR interview, says the groups have long shared a symbiotic relationship. 'They support each other, they coordinate with each other, sometimes they compete with each other, `and` sometimes they even fight each other.' The pressure exerted by the US government on the Pakistan army and government is making things worse, pushing Pakistan to a journey towards the unknown. The ruling classes in Pakistan are happy that they are being provided massive 'aid' to fight the militants, despite the fact that the country is being run on the loans extended by the International Monetary Fund (IMF) and the World Bank. Peter Symonds, a frequent contributor to Global Research, wrote an article that was published on May 16, 2010 titled: 'America's War on Pakistan: US Warns Pakistan of Severe Consequences'. It reads: 'The Obama administration has seized on the failed car bombing in New York's Times Square on May 1 to insist that the Pakistani military step up its war on Islamic militants and extend its operations into North Waziristan. The US demand is being backed by thinly disguised warnings of economic reprisals and military interventions'.

In a CBS interview recently, US Secretary of State Hillary Clinton said: 'We've made it very clear that if, heaven forbid, an attack like this that we can trace back to Pakistan was to have been successful, there would be very severe consequences.' Under interrogation, Shahzad has allegedly admitted training in Taliban camps in North Waziristan, although the amateurish character of the bombing attempt indicates otherwise. A Tehrik-e-Taliban spokesperson has denied any involvement. Is the alleged terrorist an agent provocateur providing an alibi to proponents of 'Long War' to intrude into Pakistan after Iraq and Afghanistan?

An American analyst wrote recently that the US leadership itself creates a monster, then inflates it and then fights it. How true is it for Osama bin Laden?

Clinton is also insisting that Pakistan and India shun their differences. Nobody differs from such pious assertions. But how come Clinton, or for that matter any other US leader, suddenly becomes a peace nick? The motive seems to be simple: Pakistan armed forces should concentrate on 'war on terror' rather than look with scepticism towards India with which it had fought four unproductive wars during the last 62 years.

General Kayani is reluctant to open another front in North Waziristan. 'It seems Pakistan would undertake an operation in the North Waziristan, but at the time of its choosing. The Pakistan military wants to consolidate its position in Orakzai, Khyber and Bajaur before launching an attack in North Waziristan. It may take a couple of weeks, if not months,' Rizvi believes.

'Pakistan's economy is on the verge of collapse, with gross domestic product falling from more than 8 per cent growth in 2005 to under 3 per cent last year. More than $3.5 billion in US economic and military assistance is in the pipeline, and a nearly $8 billion International Monetary Fund agreement and a $3.5 billion World Bank financing package are pending,' writes Symonds.

Faced with a severe energy crisis, hundreds of thousands of loom workers in Pakistan are likely to be laid off. Inflation has crippled not only the working classes but even the middle classes. One find thousands of low-income employees having food at free food centres run by eminent social activist Abdus Sattar Edhi because they can't buy food with their meagre salaries.

The ruling elite look the other way. The economic and political turmoil can push the people of Pakistan towards anarchy since forces that could resist malignancy either do not exist or are too weak and fragile.


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

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Who is behind twin Misdeeds

IIPM BBA MBA Institute: Student Notice Board

Two incidents at the fag end of campaigning cast their shadow over the civic polls— Gorkha League president Madan Tamang's murder in broad daylight and the disastrous accident of the Gyaneshwari Express at Sardiha near Jhargram, which claimed 150 lives and seriously injured another 150 passengers. Madan Tamang was killed on May 22 while the train accident happened at the wee hours of May 28, couple of hours before campaigning was to end. While none of these incidents directly bear any relation to the polls, one can hardly deny its effect.

While the state police’s CID is busy probing both the cases, strong demands are there for CBI probe which the state government is totally against. The attitude of the ruling party and circumstantial evidences are raising several questions. Some people, including Union minister Shisir Adhikari, are pointing fingers at the ruling CPI(M).

Madan Tamang was supposed to hold a rally at Darjeeling on May 22 which was being opposed by Bimal Gurung and his Gorkha Janmukti Morcha. The police, which had earlier denied him permission for the same, not only gave permission but also took him to the spot under full police protection in an unscheduled trip a day before the rally. As Tamang’s visit was unscheduled, his partymen were also not there. All of a sudden, hundreds of Gorkhas, armed with daggers and swords, rushed towards him and left him lying in a pool of blood with several stab injuries. One-and-a half dozen police, who were there to protect him, just vanished during the killing and came back as soon as the killers disappeared. Tamang’s bodyguard tried to prevent and fired a round from his service revolver and he was also injured by the attackers.

Despite every section demanding a CBI probe, including the GJM Chief Bimal Gurung and wife of the slain leader, the state decided on a CID investigation. Now, why did the police personnel not fire a single shot or lob teargas to prevent the attackers? Why Tamang was not whisked away while attackers were rushing in? How did the attackers get Tamang’s unscheduled visit info when even his partymen were not aware? Why did the police name the GJM president and secretary in the FIR when they were not present in the Hills on that day? Interestingly, the state CPI(M) secretary had cautioned the state of ‘major bloodshed before civic polls’. That happened in the form of the train incident. Soon after the incident, the surviving driver of the goods train, Nirbhay Kumar, had seen four persons with torches. “They were speaking in Bengali. They said, 'Not much has happened' and met another three persons nearby and then left,” he said. State minister Sushanta Ghosh, infamous for the Chhoto Angaria massacre, reached the spot by early morning along with his partymen. Soon, the Maoist linkage theory spread. The railway minister also spoke of a blast under the railway tracks which turned unfounded. About 17 inch of a railway track was cut away which caused the derailment. As the area falls under the Joint Action Force's operations, was it convenient to blame the Maoists? The CPI(M) also linked the People's Committee against Police Atrocities (PCPA) to the act.

But, the Maoist modus operandi appears to negate their linkage. They use firearms or explosives, none of which has been used here. It is also a fact that Maoists have always admitted to their actions and killings. In this case, spokesman of the Maoists Akash not only strongly denied their involvement over the phone but blamed the CPI(M) for this. Akash even said, “We admit to even mistaken killings like the bus incident in Dantewada. We are against attacking public vehicles.” People in the local villages are afraid of speaking to journalists as they say, “Armed CPM goons lurk in every corner of our village.”

Thirteen out of 15 villages surrounding the accident spot within a three-km radius are fully dominated by CPI(M). By dominated one means the presence of more than a dozen camps of armed CPM cadres, usually referred to as 'harmad'. These villages are Manikpara, Bojudih, Daldali, Ghagrashol, Putushol, Bahragora, Joipur, Amdiha, Burishol, Dudhkundi, Sardiha, Bhangabandh, Rajbandh, Jhatibandh. Confirming total absence of Maoists in those villages for more than 6 months, one villager said, “No Maoist has the courage to enter these villages till the heavily armed cadres are here.” Sources say more than 150 sophisticated automatic firearms, including AK-56s, are with CPM cadres.

A PCPA spokesperson said the same. In fact, the PCPA has demanded a CBI probe while the Maoists want a probe by a committee consisting of eminent personalities from different walks of life as they do not trust the Union government too. Villagers of Khemashuli, Guptamoni, Sardiha have different clues to share. They said after the incident, the miscreants reached Manikpara in a small car. According to them, a secret meeting was held at CPM leader Arjun Mahato’s house at Putushol village a night earlier. Reportedly, Anuj Pandey of Lalgarh, whose palatial house was demolished by people in presence of Maoist leader Bikas on June 15 2009, was present at the meeting. Pandey is a close associate of Sushanta Ghosh, whose younger brother is reportedly involved in Chhoto Angaria and Nandigram-Khejuri killings. A top leader from Kolkata has reportedly contacted them at around 3 am that night. The incident happened nearly 22 hours after that meeting.

Questions are also being raised as to why the chief minister rushed to the spot even cancelling his scheduled Meet the Press. After all, he did not visit Shilda where dozens of EFR Jawans were killed by the Maoists or Stephen Court at Park Street where a raging fire fire gutted the building killing over 35 people. Now, one Bapi Mahato’s name has surfaced in a English daily who has reportedly admitted to his role in the train incident and has claimed himself as a PCPA supporter. Interestingly, Bapi himself denied he said anything like this. Two more names also doing the round are Umakanta Mahato and Dhanapati Mahto. Interestingly, all these three youths were earlier booked by the Joint Action Force and Police under UAPA. They were organising protest against sponge iron factories and were not Maoist supporters. The police failed to produce chargesheet against them in the court and they were released. Now, they are being targeted afresh.

So, the questions raised by several quarters, including eminent intellectuals like Sunanda Sanyal, Subhaprasanna, Shaonli Mitra, Bratya Basu and others, have some prima facie credentials. A CID probe will not look into these questions as the state administration will not be interested in it.

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).

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SHREK FOREVER AFTER Utterly ogrely…!

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Goes ‘Ogre-board’ with punchless jokes in a retelling of Shrek 1

The ogre fun is here again with an interesting twist but Shrek as a franchise ran out of steam by “Shrek The Third” and is pretty much running on empty now.

The latest tale begins with an irate Shrek (Mike Myers), trying hard to shuttle between his daily chores and managing his kids, with absolutely no time for himself. He misses his long lost luxuries of lone time and of having the liberty to take a mud bath as and when desired. A dejected Shrek, desperate to live his bachelor life again, soon gets tricked into signing a contract with the evil Rumpelstiltskin (Walt Dohrn), who with his magical powers, offers him a deal to live his bachelor life for a day. Once Shrek bites the bait, he finds himself to be a part an era where no one knows him - his wife Princess Fiona (Cameron Diaz) doesn’t recognise him, his friends the Donkey (Eddie Murphy) and Puss (Antonio Banderas) have no idea about his existence and worse still Rumpelstiltskin is the king of Far Far Away.

How Shrek fights all evils (especially the flying witches) and wins the ‘Kiss of True Love’ in order to turn back time is an interesting watch only if one overlooks the frivolous entry of the Pied-Piper. The 3-D gimmick does not add anything to the adventure and the film is not exactly a bundle of joy if you were expecting a world of entertainment, but nevertheless it is a decent watch. It’s “Shrek 1” redux in a sense; only with fewer funnier moments.

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.
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MUKESH KUMAR SINHA, EXECUTIVE DIRECTOR, MPVHA

MUKESH KUMAR SINHA, EXECUTIVE DIRECTOR, MPVHA

What do you do to make yourself visible?
We tell about all our programmes and initiatives on our website, which is updated very often. We also keep the officials, representatives and media updated on what we are working on and how we are doing it. Presentations during seminars and conferences are also used as a tool to tell the world about us and our objectives.

Do you think it is important to advertise for raising funds?
No, advertisements are not needed to raise funds, but they surely are helpful in spreading information. The best way, which has worked for us, is to keep the key people informed about all our plans and also make them see in person whatever work is being done.

Do celebrity endorsements help in this?
Yes, they do in the beginning. But with time it is the work that speaks and not some person.

There are cases where in the name of starting an NGO people have generated funds and have misused it. Doesn’t it affect the credibility of the sector as a whole?
Cases like these do pose a threat to the credibility. And to be able to remain on the right side, it is important that the stakeholders are aware of all the work that is being done. So, we keep a documented form of all our financials and also keep and maintain proper records of all our programmes. We also set our priorities and work accordingly. Keeping friendly relationship with media is also very helpful.

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).

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Advice for the life

MAYUR TOSHNIWAL
PRESIDENT - RETAIL OPERATIONS (VALUE FORMATS), FUTURE GROUP
“My best one is from Kishore Biyani who said that unless you take risk, you can never gain. So you will have to take risk but take it in a very planned way. I implemented this advice by taking a decision in 15 minutes to leave my existing job and joined Future Group.”

KELAINE ROETHLISBERGER
MANAGER, ULYSSE NARDIN
“My mother used to always say ‘remember that everyone you meet is hungry for a kind word’ and having stuck to this principle has helped me both in professional and personal life...”

SIR RICHARD STAGG
BRITISH HIGH COMMISSIONER
“My ex-boss advised me more than 20 years ago that there are no limits to what one can achieve as long as one does not go overboard. We should know where to draw the line. So basically everyone decides their own achievements.”

JUDY JARVIS
COUNTRY MANAGER, BRITISH AIRWAYS
“My aunt told me in my childhood to treat every individual with personalised importance and this lesson I have tried to implement in my daily life. I don’t know whether I have been successful in implementing this advice but the advice has helped me a lot in maintaining professional relationships.”

ROHIT BAL
DESIGNER
“The best advice I got is from a very close friend of mine who says you should always cry (with tears)when you are sad. It’s a big stress reliever for me.”

SUNIL LULLA
MD, TIMES GLOBAL BROADCASTING
“It’s difficult to precisely point out the best advice but I remember my mother’s simple advice and that was to work hard and work harder; success comes only when you ‘work hard’ and only when you ‘work harder’ can you outdo your peers. When I haven’t followed that I have suffered. The biggest benefit of following this advice is that even after 48 years, I can still converse as an equal with both peers and competitors.”

MARCELO VILLAGRAN
MD & CEO, BATA INDIA
“If you are particular about time, it not only helps you to do a lot of things but creates a very strong impression about your personality – this has been by ex-boss’s advise to me,”

Pradeep Dhoot Director,
Videocon Industries ltd.
“My father advised me that positive motivation should be long lasting and negative motivation should not last long. Also another advice I got was from Rahul Bajaj – he said that every aspect of business should be done on a concrete basis and no illegal thing should ever happen.”

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.
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If you belong to the category of people who have no idea what is the meaning of convenience food,

Angshuman Paul takes you on the most exhaustive, yet critically inquisitive treatise of why global food giants – hunting for indian food company acquisitions – now think that this sector will be the biggest contributor to the retail sector growth in India

This was really what caught our eyes! Last year, the Delhi based Fun Foods completed its 25 years of being in the business. The way the promoters celebrated this event was pretty unexpected. This ‘convenience food’ company (‘convenience food’ refers to ‘ready to cook’ and ‘ready to eat’ product categories), which to its credit has all quick service restaurants as its institutional clients, was sold off to a German company, the $12 billion giant Dr. Oetker. The question over here is, why did promoter Rajiv Bahl sell off a brilliantly performing business? Especially when Rajiv and his son, 29 year old Viraj Bahl, were clearly very passionate about creating a convenience food brand of national repute. It didn’t take us long to find the answer – Rs.111 crores! That’s the amount the Bahls got for the sale.

But the fact is that if not Dr.Oetker, the Bahls would have got a similar offer from some other global giant, as India is seeing a huge influx of foreign players entering the convenience food industry in a clear attempt to either set up JVs or simply to acquire companies lock, stock and barrel. And that forms the crucial crux of our cover story, which on one hand provides a most concise update on recent foreign entrants in the sector, and on the other provides a critical analysis of whether this industry can sustain the growth expected by the players in the future! To put all doubts at rest at the start itself, it is a fact that the Rs.3.6 trillion Indian food and beverage industry is decisively surging ahead, with sectoral analysts extrapolating figures for the coming five years for the convenience food sector. A KPMG ‘Food Report’ forecasts that rising incomes will increase domestic consumption of ready-to-eat (RTE) and ready-to-cook (RTC) food over the next five years in India. There’s more! Indian RTE and RTC brands are now increasingly finding prime shelf-space in the retail chains of US and Europe. For example, the Bentonville giant Walmart, after rolling out its first store with Bharti in India in May 2009, is now working on a pilot project with the Gujarat Co-operative Milk Marketing Federation, the promoter of the Amul brand, to market ethnic processed food products overseas. In the same league, Satnam Overseas, one of India’s major food exporters, is investing $4.4 million for setting up a rice mill near London to boost sales of its Kohinoor brand of food.

‘Food’, clearly, has become the appetizer driving India’s retail revolution. According to Retailers Association of India (RAI), food and beverage sectors’ share in overall retail in India is now at a staggering 65%; and majority of this 65% share comes under the ambit of processed foods and vegetables. Further, according to consulting firm McKinsey & Co., the retail food sector in India is likely to grow from $70 billion now to $150 billion by 2025 (a forecast many analysts say is very conservative) with 60% of this market belonging to the convenience food category. Even McKinsey stresses that the Indian FMCG segment’s gen-next growth will be driven by the food segment only – findings that are literally forcing FMCG players like Cavin Kare and more to make their entry into the packaged food business.

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).

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BIG OCEANS ARE RULED BY BIG FISHES

Independent agencies have always remained but it is the multinats that have the scale to train talent and reorient clients for tomorrow

For the last couple of years independent agencies have been in the news. More than half of these have been started by creative people who left bigger agencies to start operations. Suddenly everybody is wondering what this development means from a the long-term perspective. In my opinion, the course of independents gets decided by the vision of the bigger agencies. They are the ones with a window to where the world of communications is headed.

In their early days of going global, many multinationals in many markets made the mistake of parachuting large numbers of ex-pats to duplicate their creative magic at the other end of the world. This left a huge gap for the rise of independent agencies that understood local cultures and made intuitive connections with local consumers. Wiser with their experiences elsewhere, in India, multinationals have nurtured local talent over decades. The result is that the creative work from multinationals has not only grown, but also has a distinct Indian flavour. Indian arms of Leo Burnett and O&M have been Agency of the Year across global networks. So even as more small fish swim by, the big fish in India have evolved.

As far as independent agencies go, they will continue to crop up and win some businesses. Many of these wins will be based on the illustrious past life of their creative founders while working for multinational agencies; and specifically on personal client relationships. But independents that want to grow beyond a clutch of accounts and achieve scale will have to go in for tie-ups. As client base grows, an agency needs the best creative pool working with it. Multinationals stand a better chance of attracting and retaining fresh talent with better pay scales, opportunities and training. At the end of the day, it’s a big ocean out there. And big oceans are ruled by big fishes.

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Source : IIPM Editorial, 2010.

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

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TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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NOW MEGABUCK ENDORSEMENTS FOR NEWBIES TOO!

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A Ranbir-Deepika jodi coming to launch his product and then gracing the dinner that follows could catapult him to Page 3 status and is likely to do wonders for the employee-morale present at the event”.

Ad-Guru Alyque Padamse too is convinced that it defines categorically the “thirst that both the Advertiser and general public have for celebhood with ad frat desperate to cash in on it”. However, he warns, that care should be taken to prioritise … otherwise Deepika outscoring the product endorsed in recall value, could be tragic news for the Advertiser! Leo Burnett’s Sainath brings his own spin to the debate. He believes ultimately it is about “effective clutter-busting. New-age India looks for and at new-age stars. There are two kinds of stars. The timeless variety – SRK, Big B, Sachin, Akshay – and the new kids. If the consumer is growing older, he will look for older icons; if he is getting younger, star-kids zoom centre-stage. In a young, resurgent India, this is completely appropriate. A sign of the times.” Anita Nayyar, CEO, Havas Media wraps up this debate with her insightful, knowledgeable and authoritative take. She reckons it has largely to do with the shortage of credible celebs available for endorsement. “SRK and the Big B have been done to death (Remember BINANI CEMENT & LINC PENS? Jeeezus!) – and there is a genuine dearth of sexy, young stars in an environment bursting at the seams with youth-driven products for a gigantic youth market. So I guess, for a quick-hit, grab the latest flavour of the day and go with the flow. The stars too know that this is a cool way to make quick mega-bucks, so strike when the iron is hot. Kal kisne dekha…!”

At the end of the day, certain path-breaking facts emerge. One (unlike earlier times), a star doesn’t have to slog for years and reach a status to gain credibility and pulling-power in the Ad-market. One big hit does it! Two, the publicity machinery has taken on critical dimensions, so media-driven hype (of any sort) for Bolly-stars is big stuff. Finally, Bollywood has discovered the importance of brand-building and with smart packaging go all out to create an image, aura and climate that sells … the result? Its rainin’ moolahs for the Bachhalog, guys!!

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Source : IIPM Editorial, 2010.

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

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TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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ALPHA MALE OR MARATHI MANOOS?

Raj Thackeray, President, MNS

Be it his arrest last year after vocal attacks on North Indians at Shivaji Park, or his exoneration in the Kini murder case, Raj Thackeray is a name known and feared by many. While some call him the ‘bad boy of Indian politics’, a section of Marathi locals sing his praises for protecting their interests. The only thing Raj has been still unable to explain is that if you drive all ‘outsiders’ away, what will happen to Business and Bollywod, Mumbai’s twin success towers. Nevertheless, the self-proclaimed messiah for Marathi Manoos has been able to successfully propel the regional debate onto the national consciousness and in the process has honed his brand awareness. Remember the TV images from Mumbai in October last when 1,900 employees of Jet Airways were sacked? No peaceful democratic methods for Raj. This alpha male threatened to disallow any Jet flight to take off till ‘all’ fired employees were reinstated! That’s Raj Thackeray – the branded ‘bad boy’ of Indian politics!

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Source : IIPM Editorial, 2010.

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

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Commission curse…

IIPM: An intriguing story of growth and envy

This certainly comes as a breather for ticketing agents across the country. Foreign aviation players plying in the Indian market hitherto operated on a zero-commission model, over which a lot of brouhaha was created by agents. However, the latest ruling by the Directorate General of Civil Aviation states that foreign airlines will have to pay commission to the ticketing agents. The decision of the aviation regulator to do away with zero-commission model will benefit around 2,400 agents in the country as international carriers like British Airways, Air France, Lufthansa, et al, will now have to pay 3% commission to ticketing agents. But will it impact the financial standing of these foreign airlines during the current turmoil? “Demand continues to improve, but profitability remains distant. Fares have stabilised, but at profitless levels,” explains Giovanni Bisignani, Director General & CEO, IATA. The new rule implemented will hurt the overall yields and further decline the revenues of international airlines. Out of the total 72 international airlines operating in India; 16 do not pay commission to travel agents. Since close to 85% bookings are done through agents, the reduced revenue per ticket would definitely add to the mounting problems of increasing cost pressures. It gets worse when one looks at the revised loss projection of $9 billion for the current fiscal made by IATA for the global aviation sector. The ruling maybe a blessing for ticketing agents, but is a curse for the airlines.

Ratan Lal Bhagat

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Source : IIPM Editorial, 2010.

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

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BBC WORLD SERVICE TRUST - MADISON MEDIA PLUS

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OBJECTIVE: To increase the use of condoms in India and encourage people to say the word ‘condom’ openly.

MEDIA STRATEGY: ‘Say-CONDOM-aloud’ opportunities were created where the consumer had to say the word ‘condom’ aloud and initiate a discussion about condoms. Buzz was created around the word by replacing the word Kabbadi with condom in the popular local sport. Consumer fancy for ringtones was targeted by leveraging the word ‘condom’ as a ringtone.

EFFECTIVENESS: As per NACO, condom sales through government channels grew by 85 million units during the campaign period.

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Source : IIPM Editorial, 2010.

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

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In Bed with Hitler Stalin!

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4Ps B&M: AIDS charities worldover are protesting that it would be HIV positive patients, not the disease itself, which will be associated with war criminals via this campaign. Do you agree?
Silz: The bottom line is that we started a new discussion about AIDS. And that’s what we wanted to do. We did the campaign for an AIDS charity called Regenbogen e.V, which has many AIDS patients as members. They decided to run this campaign and didn’t feel stigmatised. We’ve got a lot of e-mails from AIDS patients who get the campaign right and encourage us to go on to start a new discussion about AIDS.

4Ps B&M: Are positive responses also coming?
Silz: Absolutely! We get every day, thousands of congratulations from parents, youth and HIV positive people. They like the campaign. Here are some statements... “Finally someone who really deals with the theme.” HIV positive persons wrote, “If these ads were published years ago, we would have probably not been infected.” Teachers are calling us because the video is on every mobile phone on the schoolyard in Germany. So teachers order our posters to start first lessons in talking about AIDS. They get more attention from the kids. And this young crowd is precisely our target group.

4Ps B&M: Do you think that this should be replicated across countries for AIDS awareness?
Silz: Of course! In almost every country you will find a bad guy who killed a lot of innocent people. I don’t know if you had one in India. To me, it sure sounds like a peaceful country...

4Ps B&M: Are you hoping to win a few big awards for this campaign?
Silz: We work for clients. Not for the awards.

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Source : IIPM Editorial, 2010.

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

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Dainik Bhaskar tunes into the right channel

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When most of the players in the Indian media industry are finding it hard to stay afloat (thanks to a sharp decline in ad spending by Indian advertisers), there’s some good news flowing in for Dainik Bhaskar Group. Its radio station My FM has just achieved the break even, well before the estimated time. Moreover, while the company’s net revenue during the quarter was up by 46% (y-o-y), its operating profit was up by 99% for the quarter. So, what has made it taste such success, when other radio brands like Big FM, with largest network, have failed to break even? “A mix of its excellent listener understanding and strategic marketing which allowed us to tap into new listeners as well as a new genre of radio advertisers,” reasons Harish M. Bhatia, COO, 94.3 My FM. No doubt, as pointed out by Harish, extensive market research has really helped the radio station. The radio channel conducted three major Radio Surveys in the various markets where it has presence and based on the insights, packaged its offering to the local consumer. The surveys revealed that even in cities within the same state, people have different taste and flavour for music. Thus, a customisation of the product varying from city to city basis has helped MY FM to be a leader in 15 out of the 17 markets it operates in, despite the presence of older and national radio channels in these markets. Moreover, as a part of a deliberate business strategy MY FM operates only in tier 2 & tier 3 cities. In fact, these are the markets where Dainik Bhaskar, the newspaper, has a strong hold. Also a strategic effort to convince non-radio advertisers about the benefits of the medium and getting them on board has helped it churn smile for its stakeholders.

Pallavi Srivastava

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Source : IIPM Editorial, 2010.

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

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HONEY, I MADE IT ONCE AGAIN!

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The mission to become an internationally renowned brand began four years back for Airtel. Today, it reigns high as the number one brand in India, for the second year in a row! Undoubtedly, it has become one of the most formidable brands of India Inc.Airtel has succeeded in establishing a strong ‘connect’ with a billion Indians, as Pratik Mazumder, who has been a brand custodian of Airtel till 2008 and now runs his own brand consultancy out of Bangalore, avers, “The Airtel success story is just like a Bollywood film, with the home-grown company being able to make a mark for itself in the second largest telecom market in the world, and thus becoming the fourth-largest telecom service provider in the world. It’s a company that is loved by its customers, admired by its partners and benchmarked for its best practices by its peers. It’s a company that has transformed the lives of a billion across the country.”

Airtel was one of the first companies to be offered wireless license in the country (in the year 1995) and that event marked the beginning of a new era in Indian telecom history. When Airtel entered the scene, wireless technology was considered to be a utility meant only for a select few. But with competiton increasing and with timely government intervention, prices were slashed to rock bottom levels. Mobile telephony suddenly became a necessity. Since then, Airtel has evolved into a ‘life changing’ brand, changing with the times and even today continues to be greatly associated with the lives of the its customers. “Airtel has always banked upon the strategy of portraying real human emotions that touch one’s heart and hence people can relate well to this brand, ”shares Sagar Mahableshwarkar of Rediffusion Y&R (the agency that handles Airtel’s creative account).

Over the last year too, Airtel as a brand has kindled many emotions through its communication strategy. Even its latest ‘Special five’ campaign (that is currently on air) stands proof to the same. This campaign is about Anna and her special five friends and explains well how one can talk to his/her chosen person at subsidised rates. The thematic idea behind this commercial was to communicate how to make your special ones even more special and bring them closer, by establishing a constant communication channel. Apart from this, the company has also roped-in multiple brand ambassadors and popularise its value added services (VAS).

However, as a market leader, the company did not just rely on its markeing communications strategy win the crown of the ‘most valuable brand in the country’. It also offered many innovative offerings to the end customers. The most talked about service was the launch of its DTH venture – Airtel Digital. The launch campaign featured as many 10 celebrities and was able to draw instant attention. This particular ad went on air on October 8, 2008 and according to a study done by research firm IMRB on October 9, 2008, Airtel Digital TV had extremely established an strong awareness and ad reach numbers in just a day! The key findings indicated that the spontaneous awareness for this ad was 37% and total awareness was 58%. Google trends show Airtel Digital TV to be the 3rd hottest or most searched keyword a day after the TVC was aired, while it had over 10,800 views on YouTube! “Airtel digital TV expects to gain 20% market share amongst new additions to the category in the first year alone, and expects to increase it in the subsequent years,” opines N. Arjun, Executive Director – Bharti Telemedia Ltd.

And the strong communication mantra continues for Airtel Digital TV. Only this time, it talks about its picture clarity through a television commercial featuring Saif Ali Khan and Kareena Kapoor. The company has plans to come out with many such communication campaigns in the future as well. Last year, Airtel also launched its IPTV, and positioned itself as being not just a telecommunications giant but a media and entertainment brand as well, making it the first Indian company to offer triple play services. Apart from this, the company also launched its communications around its 16MBPS broadband offering with the tagline ‘Impatience is the new word’ that helped connect the company with its young dynamic customers.

Strong marketing communication and value driven innovation - reasons enough for Airtel to win the coveted crown of India’s Most Valuable Company for the second time in a row...

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Source : IIPM Editorial, 2010.

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

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