Wheeler Dealer!

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It's not only his behind the scene skilled manipulative abilities that have placed him among the top policy makers of the administration. "More than the manipulations, it has been Cheney’s CEO credentials and close contacts with the oil companies, which have tarnished the image of US democracy", says Ajey Lele, a noted columnist & author of the book Bio-Weapons-a ginne in the bottle, while talking to B&E . Cheney's work as head of Halliburton (the leading MNC providing products & services to the oil & energy firms) is duly recognised – mainly to lobbying for getting mouth watering contracts from the US military. His role, ironically, was not for understanding corporate ethics but cementing relationship with powerful decision makers across the globe. Not only this, his contacts then with Arab Sheikhs as with the Bush family were instrumental in placing him at the helm of affairs.

Cheney is no simpleton, but a smooth operator. He is the leader of neo-conservatives, aiming to keep the world in a constant state of revolution.

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Source : IIPM Editorial, 2007

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

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Quest For Value

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With drowning ARPUs, the VAS industry is on the ascendant and a world of possibilities in the mobile domain is just opening up. The Indian mobile VAS industry is most likely to grow by 60% in 2007 to touch Rs.45-60 billion mark. Bharti Enterprises has crafted a different entity Bharti Telesoft, which has extended its reach in 25 countries to over 100 networks. Sanjiv Mital, CEO, Bharti Telesoft says, “...a large proportion of our profit is reinvested in R&D & product development, but this investment is from internal accruals.” In order to meet customer expectations and survive the rising competition, bringing more such services to the market quickly & cheaply can be a major differentiating factor.

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Source : IIPM Editorial, 2007

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

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Dell offers a cheap bargain to Chinese

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In order to capture the emerging markets in developing countries, Dell Inc. introduces its new range of Desktop PCs in China, that are not only succinct in terms of size but also in price. Following the fastest growing PC market in the world, Dell would then take its product to other countries including India. This EC280 comes embodied with an Intel 205 microprocessor and energy saving features. Holding a price tag between the range of $333 and $513, this product comfortably fits the pockets of its Chinese amateur computer users. However, Dell’s efforts follow the numerous attempts made by other PC players like Lenovo, Hewlett-Packard Co. and Acer Inc. to target the Asian consumer market.

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Source : IIPM Editorial, 2007

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

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Beyond The Covenants

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The recent DHL-McKinsey Apparel & Textile Trade report brought to the surface that the Indian textile & apparel industry will have $16 billion turnover by 2008, and that by 2013, exports from India could grow 15-18% annually, amounting to over $30 billion. Small wonder that the players from the land of dhoti wearers are gobbling massive space in Uncle Sam’s wardrobe.

An Ernst & Young (E&Y) study too envisaged a 19% apparel export, until 2010. “Textile companies’ global plans are now no longer limited to exports only... they are generating funds to have direct presence in global market,” states Ajay Sahai, Director General, FIEO. Several domestic companies have purchased international brands (Welspun purchased Christy, GHCL acquired Dan River & Roseby’s and Creative bought Portico brands) to penetrate the first world markets and to supply to the domestic market under the same brand name. In the home market, the retail fever has gripped the prêt-a-porter industry. With branded apparel retail expected to grow at 15-20% annually, retailers like Reliance, Bharti, Pantaloon, et al are creating waves. “Apparel retail generates the maximum margin and with the retail revolution
happening in this country, almost all apparel brands will go for retailing,” predicts Maneesh K. Goal, Team Leader, CRISIL.

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Source : IIPM Editorial, 2007

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

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These Gods are crazy, period!

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And this trend of performance related exits is not unique to Dell. A survey of 2,500 largest public sector companies for 2005 by Booze Allen Hamilton reveals that North America saw a high CEO turnover of 16.2%, out of which a record 35% were performance-related departures. Home Depot CEO Robert Nardelli, Scott Mcnealy of Sun, Bill Ford of Ford Motors, Carly Fiorina of HP, Michael Eisner of Walt Disney and Juergen Schrempp of DaimlerChrysler are some of the popular examples of people who went through the CEO revolving door.

CEOs are increasingly expected to reform age-old maladies in unreasonably short spans of time. Research by Spencer Stuart shows that CEOs of top S&P 100 companies are more likely than CEOs of remaining S&P 500 companies to spend their entire working lives in one firm. Moreover, ignorance of succession planning and over dependence on an individual, as in the case of Dell, is risky. Michael Dell should have remained a mentor behind Rollins rather than jumping into the fray once more. But then, could Michael afford to fall out of favour with the deities of Wall Street?

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Source : IIPM Editorial, 2007

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

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Love in movies, malls and MTV

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From Google changing its logo to suit the occasion, to TV channels customizing their programmes for the V’day, everyone is using love to promote themselves. Story lines of serials are changed to fit the event, so Jassi of Jassi Jaisi Koi Nahin receives a Valentine gift from her boss Armaan on this day. Not to be left behind, Star Plus started a contest where you could mail Valentine messages to the characters of its popular serial Kahiin To Hoga. The best message would have won a dinner date with the stars of the serial. Zee Cinema came out with a whole movie festival around the love theme called Dil Deke Dekho.

This day of love is loved by the retailers, and where else is this more evident than in the malls. They are designing promotions in such a way that one can spend the whole day there. Keep spending, and let love keep flowing. Not surprising then, Fun Republic in Chandigarh created a record of sorts when 40,000 footfalls were clocked on 14th February (in 2005); and the McDonald’s outlet in their mall achieved its highest per day sales in the nation, at this very mall. Not just the mall, a whole lot of other brands have begun earmarking this day. MTV hosts its MTV Asia Awards bash on this day. Cashing in on love, the theme for the bash naturally is ‘Love’. Not just this, the Chicago based Wrigley decided to venture into chocolates just days before the nation, or rather the world, got into a love-frenzy. It bought a premium chocolate company in Russia just in time for Valentine’s Day!

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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The voyage mercenaries!

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Sounds like a good idea now, but there weren’t many buyers (read ‘investors’) for it when it started. After depressingly failing to convince more than 30 venture capitalists and other investment firms for almost 6 months, Ashwin raised $200,000 from an angel investor. Eventually, the company raised $10 million from Westbridge Capital and started expanding its operations and aggressive marketing. The tourism boom in the country has thrown up a plethora of business opportunities, and many competitors now surround Travelguru, including MakemyTrip. com and Yatra.com, among others. Nevertheless, Travelguru claims to pioneer the online hotel bookings across the country. With competition building up in this arena, Ashwin isn’t bogged down as he elaborates, “We modified world’s best practices to suit the Indian scenario, and our services are a result of careful analysis.”

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

A twist in the TOI-HT tale!

IIPM PUBLICATION

One doesn’t get to see a lot of high profile media launches everyday or every month even every year. But, when two newspapers launch one after the other (within a week) tongues do lash. February saw the launch of Mint, the pink paper from Hindustan Times and Metro Now, Delhi’s first morning tabloid at Re.1 (a joint venture product between Times group and HT). But, what makes eyes roll is the past of their promoters (TOI and HT are cut-throat rivals) and the irony of their new launches.

Consider this: Since Metro Now is a morning daily, it will compete against TOI and HT (that is with the offerings of its own promoters). “Not really,” however, says Rahul Kansal, Brand Director, TOI. “...new product develops new users rather than cutting out the already existing ones. Youngsters, who might not have been into newspapers at all, will now read Metro Now, an abridged version of detailed news.” The newspaper is being positioned as a fun paper and is said to be strategically placed against tabloids, Today and Mid-day.

Also, while one-time rivals create a new market, their rivalry is far from over! HT’s business paper, Mint is supposed to take the market leader Economic Times head on,
(from the TOI group). With two fresh products to savour, keep a watchful eye on the
duo’s crusade against each other and their joint fight with the others. India Today’s daily and DNA is coming to town too. It will only get hotter!

Edit Bureau: Neha Gupta

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

Big Mac realises the importance of ensuring the ‘greatest good for the greatest number’

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CSR also helps in emotional branding, which can act as a catalyst for ‘me-too’ products like FMCGs. A classic example is Ezee from the stable of Godrej. The brand recently unleashed an initiative to help the needy in winter. Add to this the oomph of Mona Singh alias Jassi and Saakshi Tanwar (of Kahaani Ghar Ghar Kii fame), who the company resorted to for collecting blankets and woolen garments. Chairman Adi Godrej does emphatically assert, “This got nothing to do to promote Ezee and so I am not concerned, whether it’s affecting sales or not.” But one cannot deny that it’s quite an ‘Ezee’ promotion.

Undeniably, the growing criticality of CSR to branding is a foregone conclusion. And it’s important for companies to show a committed, rather than a piecemeal effort, towards social activities. Even if they don’t see immediate results, this goodwill will remain an insurance for potential adversities ahead.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

“Zee News has moved forward from time to time... today Zee News is a channel which earns good pro. ts and faces lesser downfalls”

IIPM PUBLICATION
Besides business, Lakshmi is also actively involved in social philanthropic work. He has been the trustee of Agroha Vikas Trust since over a decade, committed to building and running colleges, schools and temples. All in all, Lakshmi firmly believes that there is no limit to achievement, “I believe in Karma and in the fact that an individual should always strive to go in the right direction.” Even as Lakshmi is resolutely involved in his huge number of responsibilities, he makes sure he spends enough quality time with his family. Lakshmi Goel remains one of the few leaders who have benchmarked India’s media industry and stands as an example in headship and vision. His foresight and acquaintance is worth numerous accolades. And this unending commitment towards his organization makes him a zealous missionary indeed!

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Trust us dude! We didn’t start the fire...

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In fact, we should be careful not to read too much into the 2006 vote: Americans do not like being on the losing side of any war. It was this failure, and the quagmire into which America had once again so confidently stepped into, that led voters to reject Bush. But the Middle East chaos wrought by the Bush years also represents a central risk to the global economy. Since the Iraq war began in 2003, oil output from the Middle East, which has the world’s lowest-cost producers, has not grown as expected to meet rising world demand. Although most forecasts suggest that oil prices will remain at or slightly below their current level, this is largely due to a perceived moderation of growth in demand, which is led by a slowing down of the US economy.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Blackberrys now on its way down South

IIPM PUBLICATION
After setting shop in Northern and Eastern parts of India, Blackberrys, a premium clothing brand for men, is planning to go down south. Aiming to strengthen its position in the Southern markets, the high-end apparel brand has also unveiled a new premium collection called B B. The company has set aside Rs.250 million for its expansion and plans are underway to open additional 50 branded stores by March next year from the current 22. By March this year, the number of stores is expected to go up to 25. Also, the company is gung-ho about expanding into womenwear segment. Blackberrys' turnover for the fiscal 2007 was Rs.1.2 billion and the company is targetting Rs.1.5 billion in the next fiscal.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

Life’s Good

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BRAND : LG Dynamite
AGENCY : Lowe
BASELINE : Life’s Good

DESCRIPTION: There’s a party on in full swing; the spotlight is trained on one particularly dishy guy, who is talking on his cell phone. Conversation over, the hunk places his cell phone on the table. As everybody raises a toast, suddenly there’s an explosion & the floor (below the table) rips open under the impact of phone. The handset falls into a kitchen on the floor below. A chef places the LG Dynamite cell phone on a tray and serves it right back to the hunk.

4Ps TAKE: This one is a clarion call by LG to showcase its newly-launched Dynamite series, ‘heavily loaded’ with features to attract the ‘young’ target audience: Video caller ID, call recording, FM and more. The entire setting (party, clothes, music) is focussed on the ‘aspirational’ youth segment. Clear positioning and a visible brand personality. Just hope LG manages to up its market share vis-a-vis competitors, with this ‘dynamite’.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Enjoy the view. Suspended in midair

IIPM PUBLICATION

BASELINE : Paradise Unexplored
AGENCY : R K Swamy BBDO
4Ps TAKE : Incredible India is back with a bang; this time promoting the Seven Sisters of India – the North-Eastern states, that is. This ad offers a stunning visual of the lush greenery of Arunachal Pradesh along with sights of trekking and rafting adventures. Appealing and attractive, this one’s bound to make you wish you could be transported to this unspoilt region, gradually getting back on its feet after years of insurgency. The positioning is clear: The ‘Eco-Tourism destination’ (thanks to blue mountains & green valleys). The communication is bang on! The headline incorporates the USP of the region viz. the footbridges. The brand personality comes out clearly through both visuals and copy. All set to pack your rucksack and hit the region?

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

IIPM Publication :- Meet Ankur Bhatia, the driving force behind modern travel technology!

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Charismatic, dynamic, stoic and enterprising are some of the key traits of Ankur Bhatia’s personality, Managing Director of Amadeus India and Executive Director of the Bird Group.

Having come a long way from being just another travel-related entity, Bird Group is one of the leading diversified groups today in the travel and IT industry and is actively involved in endorsing services data maintenance, online transactions, marketing of software applications et al, providing solutions to the competitive travel
and tourism industry. While Bird Group is Bhatia’s family business, Amadeus India is a global distribution system and travel technology provider. And understanding the need of technology in the aviation sector, since 1993 Ankur has been providing strategic direction to Amadeus India. As business and leisure travel increases by the day, technology has played a pivotal role in revolutionising the way people travel across the globe. It has cut costs, improved speed and has made flying convenient. With the help of services like e-ticketing, delay reports, computerised backoffice operations, they have made flying a memorable experience.

More recently, Amadeus has announced an agreement with Indian (India’s national carrier) for providing distribution, IT & point-of-sale solutions. Ankur says that “as per travel technology experts, India is a significant market for Amadeus, given the tremendous potential and dynamic growth of the country’s travel sector. Driven by technological innovation, we’re committed to providing the widest travel content to travel professionals through our distribution system. Implementation of this project (with Indian) is a key move towards this objective.”

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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