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.

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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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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).

For More IIPM Info, Visit below mentioned IIPM articles.
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!!

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.
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).

For More IIPM Info, Visit below mentioned IIPM articles.

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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

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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For Exclusive Footage by Sunday Indian Click Here

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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.

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.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

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In Bed with Hitler Stalin!

IIPM 3-year full-time Integrated (MBA BBA) Programme

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.

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.

“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
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Dainik Bhaskar tunes into the right channel

IIPM 3-year full-time Integrated (MBA BBA) Programme

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

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.

“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
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HONEY, I MADE IT ONCE AGAIN!

IIPM 3-year full-time Integrated (MBA BBA) Programme

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...

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.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

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It’s not an easy road ahead

Two years back when s.Oliver, the German apparel brand, had made its foray into India, unlike any other European brand it didn’t tie up with any established apparel retailer, but had entered into a joint venture with Orient Craft Ltd., a relatively new player which was not retailing any other global rival brands. Cut today, bucked up with logistic expertise of Orient Craft and the core attention received from this Indian apparel manufacturer, s.Oliver has reached break-even for both its stores within a time span of just 18 months. In fact, the company is now planning to mint Rs.300 crore from India in another three years time. But then, how exactly is it planning to achieve this astonishing target? “We would be enhancing our portfolio. Moreover, our stores would now emerge as a one-stop shop for fashion and lifestyle products,” avers Gaurav Sehgal, COO, s.Oliver Fashion India Pvt. Ltd. Further, the company even plans to invest Rs.3 million in brand building and is also mulling over the idea to open seven more stores by 2012. However, the million dollar question is, with such high prices (not surely for the masses) will s.Oliver succeed to beckon the consumer? Specially when its competitor, United Colors of Benetton with a comparatively economical pricing, is stealing the show.

“We are operating in the mass luxury segment, wherein we are offering a better quality product to consumers. We don’t outsource our products, all are imported from the head-office,” reasons Sehgal. Agreed that to cash in on the mass luxury segment prices won’t matter, but then the group plans to roll out s.Oliver stores in tier II cities also and the current pricing strategy might not help them there.

Angshuman Paul

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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IIPM, GURGAON

It’s my land, dude

Call it an old God-made snag or man-made trouble, acquiring land has always been a nightmare for Indian businessmen. With 2.4% of the total surface area (most of which is used for agriculture), Indian businesses have always been given a pitted treatment when it comes to the use of land for setting up factories or starting new projects. And the biggest bearer of this trouble is the infrastructure sector, which with all its verticals, finds it tough to comply with the land acquisition laws of India. Leveraging Public Private Partnerships, the road sector of the country has come up with some world class roads. The Build-Operate-Transfer concept has been very attractive for the private sector with many new companies wanting to enter the segment. The biggest hurdle companies face is that of land acquisition. Says G. V. Sanjay Reddy, Vice Chairman, GVK Power & Infrastructure Ltd, “When it comes to land acquisition, we face tough time from the government’s side. The policies are also not very supportive.” The same is the trouble with financiers of big projects as the criteria for investing in infrastructural projects by big investors is to find out whether the land issues have been settled or not. A lot of confusion persists in this area as India does not have a proper law when it comes to acquiring land for industrial purposes. The Land Acquisition Act of 1894 says that only government is allowed to acquire land for public purposes. The private sector has to buy 70% of the land and government help in getting holdouts will only be given in the 30% of the remaining portion. The solution perhaps lies in setting a standard law across India, apart from amending the age old Land Acquisition Act, which has been proposed for quite sometime now, but due to political pressure it doesn’t seem to be happening soon.

Niharika Patra

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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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Michael Jackson’s death has given a new lease of life to Hollywood’s ailing economy

An auction event organised by Julien’s auctions (of Darren Julien), sold a Jackson album ‘Goin’ Back to Indiana’ for $33,750. The auction also featured other collections of Michael Jackson, Marilyn Monroe and Elvis Presley. Social networking sites have also not let-go this opportunity and have done everything possible to give their users real-time updates.

Twitter and Facebook are alleged to be the first ones to break the news of Jackson’s death. Twitter saw up to 5,000 Jackson-related messages being posted per minute and eventually his death emerged as the most discussed subject on the portal. Facebook saw a similar response; with the number of postings tripling during the hour after the news of Jackson’s death broke. Talking on these marketing techniques, Barry states, “Some companies license rights to use a dead celebrity’s image, movie clips, or music and incorporate those things into TV ads or promotional materials. Others just pay homage to the dead celebrity to gain a marketing association with the individual.”

Even IT giants are getting enamoured by the potential of this mammoth business. Corbis, the digital image company set up by Bill Gates, has bought a Beverly Hills company, which owns the image rights to more than 50 deceased celebrities. Corbis takes a 20% cut of the profits from any endorsement, double the usual rate for a living celebrity endorsement. Even celebrity Promotion Companies like CKX rely heavily on dead celebs for their bottom-line. They purchase the intellectual property rights and thus churn out huge money.

And if you thought that only the big brands and consultants can take advantage of legends that have passed away, you could not be more wrong. Just walk the streets of New York, London or Rio De Janeiro and you’ll see markets flooded with Che Guevara, Marilyn Monroe and now even Jackson merchandise, ranging from T-shirts, handkerchiefs and coffee mugs to sundry decorative brick bracks. True, dead celebs make for hot brands, hotter than even the living ones! May their souls Rest In Peace!

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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.
1 lakh copies sold in less than 10 days of Arindam Chaudhuri’s “Discover The Diamond In you”
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
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THE SURVIVOR

IIPM set to beat economic slowdown

Once constantly under attack for all-too-easily giving up his first mover advantage in the Indian satellite television sweepstakes, Subhash Chandra nevertheless deserves accolades for the manner in which he has retained reasonable profitability compared to peers, against changing dynamics of traditional media businesses, stiff competitive onslaught and ever-demanding consumers. What sets him apart is his completely unique way of doing business. Will he survive the new threats to his empire, asks Pallavi Srivastava

Even as senior creative honchos at Zee vent their feelings with perhaps a twinge of wistfulness (and jealousy toward their carefree money-burning counterparts at rival Star), the utter uselessness of this ‘hot discussion topic’ was not lost on them. They knew that they could discuss and debate all they liked, but Zee head honcho Subhash Chandra Goel, with his trademark salt n’ pepper savvy hair-do and a legendary business acumen to match, would not ever dream of allowing such ‘grotesque wastage’ of money. Today, those very same creative types (now employed elsewhere of course) can’t stop praising Chandra’s low-cost training, especially in the present economic gloom. “Though it was a forced training for us, but it was good training indeed. I learnt the basic fact that you don’t need mega budgets to make a show hit,” reminisces Vivek Bahl who was a part of the Zee creative team in 2005, working on shows like Saat Phere, Dulhan, et al before he left to join Star Plus. He’s now Senior Creative Director, Star Plus and Star One. Ironically, to ride the present downturn (with steep falls in future advertising revenues indicated), even Star is now picking a leaf out of Chandra’s low-cost model and giving it an energetic heave-ho. That perhaps is the primary reason why its top show Bidaai… is made at a significantly lower cost compared to Ekta Kapoor’s high budget K-soaps that have now unceremoniously been taken off air.

In an interview with 4Ps B&M, Chandra admits proudly: “Essel group never believes in over-doing things.” He goes on to preen about how new GECs launched last year are operating on a high cost model–spending big money on programming, human resource and marketing–that translates into longer time period to survive on internal money before they break even. His assessment is not too far from the truth. Viacom 18’s Colors that has nearly displaced Zee from its number two position in the GEC space has spent Rs.150 crores only on marketing and distribution. As per estimates, just the programming budget of the channel is over Rs.500 crore for a year! While on the face of it, the model does appear high-cost, yet Colors has benefited. Within just three months of its launch, Colors replaced Zee from the number 2 spot in the Hindi general entertainment space.

But tell that to Chandra and he remains unfazed. “We will not fall for this high cost model trap. We would keep our heads down and let the storm pass,” avers the protagonist of Zee’s success saga. And a true-blue, self-styled protagonist he is! Unlike his peers, he’s never really been in the TRPs rat race; instead preferring to stick to his own business model, which has made him a billionaire over the decades; and he makes sure that his key people maintain the same zeal. Echoes Barun Das, CEO, Zee News Ltd., “There’s no point going for the rat race of hyped TAM ratings if you are unable to make profits.” Chandra’s eyes are always on the bottomline - be it the short, medium or long term outlook. According to an equity analyst, despite being at number four or five in the Hindi news category (in terms of TRPs), Zee News is one of the two channels in the category to make profits. It is Chandra’s low cost model only that has enabled his regional channels like Zee Telegu and Zee Kannada to break-even in less than two years, when the average break-even period for a channel is minimum three years.

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Source : IIPM Editorial, 2009

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

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‘U’BIQUITOUSLY ‘T’ELEVISING ‘V’ICTORY

IIPM set to beat economic slowdown

FROM THEIR MOVIES TO THEIR NEW CHANNELS, EVERYTHING SEEMS TO HAVE FALLEN IN THE RIGHT PLACE FOR RONNIE SCREWVALA’S PRODIGY UTV

In an alternate dimension, even if Pandora’s Box would have unleashed all the good for mankind, it would still be beyond the term ‘cornucopia’. The entertainment industry’s evolution into a full fledged industry has resulted in a spurt of specialised and general entertainment channels vying for viewer attention and almost nothing seems to be enough! And Ronnie Screwvala is the latest entrant into the lucrative club of broadcasters, even as he seeks to transform UTV from being just a production company to a 360 degree entertainment conglomerate. On his radar is not just traditional broadcasting, but Bollywood masala flicks too. More on his Bollywood ambitions later, but so far as his broadcasting line-up is concerned, it was natural progression for a production house. However, unlike others, UTV did not make a bee-line to launch another Hindi entertainment channel, instead focusing on a variety of channels catering to unique sets of audiences. According to Shantonu Aditya, CEO, UTV Entertainment Television, “We did not want to enter the market with a 12th GEC or any other mass market channel and hence we have launched differentiated channels.”

UTV World Movies, for one, is an international movie channel which screens movies from across the world. Even though the nascent channel faces stiff competition from conventional Hollywood channels like Star Movies, HBO, Sony PIX, et al, it has still managed to hook its selective set of patrons. What’s more, the channel has 45 advertisers on board and over 650 titles to its credit. The plan is to double the number of advertisers in the coming year. Apart from that UTV also launched its Hindi movie channel –UTV Movies–this year, which caught the attention of audiences thanks to its collection of movies. During the year, Screwvala also launched a sub-brand bindass for the youth and launched two channels with this brand name – Bindass and Bindass movies. Though trade pundits are not much impressed with these channels, the company maintains a positive outlook. English business news channel, UTVi, introduced in association with ABC, is also catching up on the popularity charts, and much sooner than expected.

And now for Screwvala’s Bollywood quotient. His movies have certainly caught attention. Ingeniously, even though there were a lot of movies released under the UTV banner, the bouquet presented a unique genre mix. All the movies had a relatively diverse budget range (ranging from Rs.2 crore to Rs.45 crore) and transcended typecasting. There were the stereotyped masala flicks like Race, epic sagas like Jodha Akbar, unconventional movies like Aamir and Wednesday, and even low budget fares like Welcome to Sajanpur. The bigger surprise was that almost all these movies fared convincingly at the box office. Riding the present movie marketing wave, a key reason for the success of Screwvala’s productions has been the accompanying slick promotional extravaganza. Great content sells, but long live marketing!

Surbhi Chawla

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Source : IIPM Editorial, 2009

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

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It really pays to Think Hatke!

1500-plus IIPM students placed across the country with 44 bagging international offers

With a tagline that says ‘Think Hatke,’ Virgin Mobile had to live up to that image. Hence, it decided to be hatke from the rest of the service operators. For starters, rather than being a mass brand, it decided to concentrate just on the youth segment. All its services & offerings kept in mind the needs of the young Indians. Hence the concept of get paid for incoming and all calls @ 50 paise beyond the first three minutes is a huge hit. The marketing honchos at the Richard Branson-promoted telecom company has plans to develop innovative distribution legs for their offerings, especially targeting places frequented by youngsters, which could be as accessible as their college campus and other hangout joints.

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Source : IIPM Editorial, 2008

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

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IIPM set to beat economic slowdown
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The content blackout on GECs is over, at least for now. But the after effects will remain. 4Ps B&M's Pallavi Srivastava finds out more...

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For the past one year General Entertainment Channels (GECs) have been the talk of the television town for some reason or the other. And last week the blackout of fresh content on GECs, owing to the scuffle between the TV producers and the Federation of Western India Cine Employees (FWICE), has given everyone a reason to burn midnight lamps to find out the action on the teletube. Although the 10-day long standoff had been called off even as the magazine was going for print, yet after effects may remain for some time...

Sample this: GECs lost an average 35-55% GRPs during the first three days of the content blackout (aMap, for November 10-13). The advertisers, on the other hand, stood by in solidarity with broadcasters. They did not pull out their ads as per a decision taken by the Advertising Agency Association of India. “Advertisers are supportive of our stand against increasing cost of content, which in turn leads to increase in ad rates,” says Keertan Adyanthaya, EVP & GM, Star Plus. Industry insiders however feel that the strike was called off just in time or advertisers would have started pressing the panic buttons. Anita Nayyar, CEO, Havas Media, believes that had the content blackout continued, "the advertising revenues of GECs would obviously have started falling because of stagnating viewership.” Take a look: During November 10-14, Star Plus’ GRPs have fallen by 52.9% to 107.19 points as against 227.9 during November 3-7. Similarly Zee TV has seen a fall of 49.53% (see table). Nayyar adds, “The advertisers may have pulled out some ads and negotiated rates for some.” Admits Tarun Mehra, Business Head, Zee TV, “Revenues would have been affected, but I can’t say how much.”

However, for channels at this juncture, more crucial than advertisers and their potential reactions are perhaps the viewers. After all, the soaring popularity of GECs is an out-and-out eyeball game. If viewers come back, advertisers will easily follow suit. But once migrated to other channels and genres, it becomes difficult to get audiences hooked back to programmes. As Naresh Gupta, EVP, Planning, Publicis India warns, “It is a dangerous scenario for many serials. Once the viewer gets out of the habit of watching daily dose of soaps and gets used to other programmes, it can lead to a long term change in habits.” And TV viewing is all about habits! But this does not literally means that the future of GECs is in peril. As Nayyar argues, “A week or two is too short a period to break TV watching habits," but get ready to see some huge advertising – billboards, in-TV placements etc – from broadcasters to entice every last viewer back and then some more.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
Why Study Abroad When IIPM Gives You 3 global Advantages!