IIPM

CONSUMERS IN RECESSION

2009-10-21T00:08:00.000-07:00

The slowdown has not just blown away the bank balance of big corporate houses but also given a new definition to consumerism, says Naresh Gupta, EVP, Strategic Planning, Publicis India

Recession is the cyclone that has blown away the existing structures, markers and pathfinders. It has reorganised the landscape and consumers have been forced to reorganise their lives. As it happens, while adapting to a new stimulus, people give up a few of their old ways, and learn some new tricks. What has made this effort even more challenging is the fact that there are no previous experiences to fall back on. So we are seeing some major changes in behavior, which will have deeper impact in future, and some changes that are temporary and consumers may give it up, once the threat is over. Here are a few things that consumers are giving up. These are five behavioral trends that are driving our lives today.

Caution is in, optimism is out: India has been among the world’s most optimistic country. We have seen economic growth like never before, and future has never seemed as bright as it has in the past decade. This has lead to a constant search for new pleasures, new experiences and new beliefs. Category after category has been benefited with this optimism that the we have displayed. However, this optimism today is guarded. We are cautious, waiting and keenly watching what the future will bring. All in all, we have pressed the pause button. Thus, optimism is on hold.

Impulse is out, making choices is in: The shopping list has been trimmed down to what is needed. We are making hard choices, evaluating what we need to buy, and not buying whatever we may not need. Just a year ago we would not have blinked an eye and bought that car, Plasma or taken that foreign holiday. As we are relearning the paradox of choice, we are making choices.

EMI is out, MI is in: We had stopped buying a house, or a car or that home theatre system. We only bought the EMI. We always stretched ourselves to buy the bigger house, better car or powerful theatre system. The credit card was the currency and possession was the symbol. Recession has forced us to give up EMI, pack our credit cards, and learn to be frugal. What we look at is Monthly Income, and monthly savings. EMI has moved on to MI (monthly income).

Regular is out, bargain is in: Today’s shopping is all about bargains. Retailers are packing in freebies to lure the shoppers back to turnstiles. Movie tickets get you free popcorns, two shirts get you two more, cars get you free insurance, homes get you loan holidays. This has turned regular shoppers into bargain hunters. MRP now has no value; bargains are what drive the choice matrix. Will we now ever bother to check MRP? Image is out, image is in: Image has been a big driver of our lives. We have always wanted to display our success, progress and prosperity.

Recession or no recession, we will continue to display our progress and prosperity. If Image yesterday was displayed by ostentatious consumption, today it is displayed with being responsive and being caring. Image will continue to drive us beyond recession...

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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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The belle of the ball!

2009-08-28T00:24:00.000-07:00

IIPM - Admission Procedure

Though Vodafone Essar might have lost it to Airtel by a whisker this time, the war is still not over...

“Our customer service experiences are not just derived from what our customers want from us today, but also what they may want in future and how we can provide them with that,” explains Harit Nagpal, Chief Marketing Officer, Vodafone Essar Ltd. Certainly a lot of value added services that Vodafone India offers today are derived from this philosophy that it believes in.

“Customer service is a key pillar of our business proposition,” reasons Rajshekhar Metgud, Corporate VP – Customer Service Operations, Vodafone Essar. In fact, the telecom operator believes that maintaining high standards of quality in service and customer care is a continuous process that is in-built in their operations. The company realises that when a customer buys a mobile connection it’s to talk and it’s only in dire distress that they would be looking at calling a customer service executive. So, the first step at Vodafone is to ensure that their subscribers do not feel the need to call them at any time but in case there is still such an opportunity then the help should be available to them quickly and the matter resolved in short time. “We believe a customer’s service experience is complete when we can meet not only his rational expectations but also his emotional expectations,” avers Metgud. And to accomplish this, Vodafone has been instituting regular customer meets across urban and rural markets, where the company executives meet customers to get direct feedback and understand their requirements. Certainly it’s this attitude that has enabled Vodafone to profess that it’s “Happy to help” its customers. What else do you think a company can wish for?

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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Small striking big gold

2009-08-10T00:23:00.000-07:00

IIPM Best B-school

Brand : Maruti Alto
Agency: Lowe
‘Let’s Go’ campaign generated a decent brand equity for Maruti’s Alto in India and the ‘Boondon Mein…’ campaign in 2005 set the stage for it’s positioning as a small yet a family car. The result: sales volume crossed the one million mark in 2008 recording highest ever domestic monthly sales of 22,784 units in November 2007. It would be interesting to see whether Alto’s price is slashed to match Tata’s ‘Nano.’

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

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Brand: Santro

2009-07-25T01:31:00.000-07:00

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Agency: Innocean
Convincingly effective
It’s teaser saw Kim Dong-jin (Hyundai’s Chief Executive) convincing SRK about Hyundai’s quality and brand Santro. The launch campaign went a step further when Shahrukh said, “I’m Convinced,” to Kim, giving India’s teeming middle class an assurance of Hyundai Santro’s quality. Within four years of its launch, Santro became the second largest selling car in India displacing Maruti’s Zen. Now that’s what we call effective usage of a celeb to multiply brand promise. Convinced?

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

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‘Cricket’ainment to ‘cricket’onomics

2009-07-20T23:59:00.000-07:00

IIPM Respected Business School

The first season of the Indian Premiere League (IPL) had it all, fast food cricket that hardly gave spectators any time to sit on the seats they paid for. It was a never-before extravaganza with toppings of Bollywood glitz and glamour, and of course a new avtaar of cricket. But, that’s not all. It’s carefully timed planning at the start of the financial year (IPL made its debut on 17th April 2008), ensured that the league was showered with sponsorships, TRPs, advertisements and media coverage. BCCI earned a mind-boggling Rs.350 crore. The event was a huge success as a tele-event too. The TRPs of the finals were 7.7 (aMap). The credit for IPL’s success goes to Lalit Modi’s smart strategy of marrying India’s two biggest alternative religions, cricket and Bollywood. “IPL’s success is the classic case of changing the socio-economics of cricket by successfully merging it with entertainment,” says a sports commentator. A classic case study of ‘cricket’onomics for all you MBA’s out there!

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

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! IIPM ! Arindam Chaudhuri ! GIDF ! Planman Consulting ! Business & Economy ! 4Ps Business & Marketing ! The Sunday Indian ! The Human Factor ! The Daily Indian ! Kkoooljobs.com ! Amaze08, New Delhi ! IIPM Old Brochure ! IIPM 4Ps Quiz !

DOT hai toh HOT hai!

2009-07-13T23:11:00.000-07:00

IIPM Respected Business School

Election times provide a massive branding opportunity for marketers, say Savreen Gadhoke and Angshuman Paul

Saturday, November 29, 2008: The capital city of New Delhi was abuzz with activity. Raison d’être: That was the day when Delhi conducted the State Assembly Elections 2008. Plentiful promises, aggressive campaigning, massive advertising, et al, was the order of the day. Naveen Prabhakar, an MNC executive, too, was excited. But that had precious little to do with the elections and largely to do with the rare off he got as a result of the polls.

Naveen had some fool proof plans – a wholesome brunch followed by the screening of Quantum of Solace on his home theatre system and then an evening out with friends. Well, almost fool proof. For while Naveen was still lost in his reveries, his idealist wife Neeta announced her version of how the day should, and therefore would (the wife said it you see!) be spent. “We’ve to go and vote,” she said and that was that. Naveen agreed, but on one condition, “After voting, we’ll go out shopping and then lunch.” And so the two went to vote in the nearby booth and then headed straight toward the shopping mall. And that’s where a pleasant surprise lay for Naveen. As the duo entered a Louis Philippe showroom, they were surprised to see a flat 20% discount for those who had voted. And all they had to show was their index finger with a black ink blot mark and voila! While Neeta was beaming with a glow of nobility; Naveen’s eyes were in a great ‘Louis Philippe buying’ mood all of a sudden.

As idealist speeches, loud campaigning, et al, fail; varied marketers across sectors are imbibing the significance of voting in their marketing strategies, either directly or indirectly. Not only have the top-rung companies improved their top lines, but have also enhanced their brand value, brand image and equity by associating with this cause.

Sales at Louis Philippe were higher on Election Day, when it offered the discount, as compared to other normal days. “The idea was to reward those who had voted, in appreciation of their act, which was a service to the nation,” said Vishak Kumar, Chief Operating Officer, Louis Philippe to 4Ps B&M.

The Times of India’s ‘Lead India’ initiative, which commenced in 2007, was perhaps the first step taken in this direction. “The main idea was to awaken the ‘common man’ and make him realise his responsibility toward the country,” said Agnello Dias, the creative brain behind the campaign. Taking the campaign forward, Aamir Khan has been roped in to be the face of the ‘Lead India’ campaign, which urges citizens to vote, to have a bright future for the younger generation. A pun on the famous ‘Lead India’ campaign is the ‘Bleed India’ campaign. Though the client is still unidentified, the print campaign’s baseline says, ‘Take no tension. Why vote in election?’ The body text proclaims about the wrongdoings of the pappu raj (read government), and if this time, voters don’t come out and vote, pappu raj will continue to destroy the society.

Various campaigns are now being unleashed with a single-minded focus on awakening the common man and inducing him to go and exercise his fundamental right of voting. Take for instance, Tata Tea’s ‘Jaago Re’ campaign. Recent TVCs are aimed at not just ‘waking’ up the youth, but ‘awakening’ them from a deep slumber. Radio Mirchi’s ‘Dot hai toh hot hai’ campaign is dedicated to make voting hot and fashionable. Idea Cellular’s ‘Isiko kehte hain democracy, what an Idea sirjee’ campaign featuring Abhishek Bachchan (which was aired right after the State Assembly Elections last year), also propagates the idea that the common man should freely voice his opinion and vote for what he feels is good for him and for the society.

UTV’s ‘Ungli utha vote kar’ campaign, featuring John Abraham was also particularly aimed at youth to come forward and vote. Domino’s ‘April Happiness Ballot Paper’ signifies that citizens should vote for a happy life ahead. Ajay Kaul, CEO, Domino’s Pizza India told this magazine, “We wanted to highlight it (customer’s emotional connect with the brand) more through the ‘happiness’ quotient. To make it contemporary this time, we came out with a ‘Happiness Ballot Paper’, where we are saying that this Ballot Paper, like Domino’s, can bring happiness in your life.” A great way to gain customer insights as well.

Definitely, the brand building is phenomenal, if the advertisement is intelligently linked to the brand. Before coming out with the ‘Jaago Re’ campaign, Tata Tea was an also-ran in the tea category. However, post the campaign, the brand has jumped to the number one slot, leaving behind HUL’s Brooke Bond. Similarly, the advertising and communication of Idea Cellular has become bigger and larger than the brand itself, for the Idea connection is shown as having a prominent role to play in helping the common man in the Indian democracy. For Times of India, more than a campaign, ‘Lead India’ is a reflection of their responsibility toward the society. And it obviously goes a long way in maintaining their credibility as a responsible media house.

Even this time around, marketers are leaving no stone unturned to ensure that they urge citizens to step out of their cozy homes and vote. “We are taking forward a persuasion campaign by urging people to vote and getting others to vote through SMS, electronic direct mailers, e-mailers, in-store POPs & collaterals,” adds Kumar of Louis Philippe. For a change, democracy seems to be helping one and all!

Savreen Gadhoke and Angshuman Paul

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

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Will my tomorrow be safe?

2009-07-03T01:37:00.000-07:00

As the global banking giants head towards their worst time ever, Indian customers are worried about their money parked with them in India

Mitali, a call-centre executive, still remembers how her friends persuaded her to change her decision when she was planning to park some of her hard earned money in a safe investment avenue like fixed deposits. They argued against her decision to opt for a public sector bank, talking about the foreign banks’ service qualities, global reach, high standards et al. And today, when she is worried about the safety of her money, all those so-called advisors have ran out of words. But then, Mitali is not just one the only one going through this confusion, there are many more like her who are currently going through it. The basic question that’s in their mind is whether their money is safe or not in the hands of these glitzy, glamorous foreign banks?

Everyone must be remembering the whole frenzy episode attached to the adverse news that hit ICICI Bank in September last year. Almost all the ATMs of the bank were drained out in one day, only because there was a rumour which said that the bank had a major exposure in Lehman Brothers, the giant US investment bank that collapsed last year. If a link to a collapsed bank can create such panic in the minds of millions of the customers of India’s largest private bank, one can easily understand feelings of those whose money is placed in banks like CitiBank, which is currently undergoing the worst phase and struggling to survive. Explaining the impact of global turmoil on Indian units of the global banks, Karthik Srinivasan, Co-Head, Financial Sector Ratings, ICRA said, “It would definitely affect the foreign banks operating in India as in many cases these units are more like branches of their global counterparts, not standalone entities. So they cannot keep themselves away from the hit taken by the original company. However, at the moment it’s too difficult to say to what extent they suffer.”

Apart from the current financial health of the other factor that aggravates this skepticism is the guarantee cover for deposits made in India, which is pegged at just Rs.1,00,000 compared to 50,000 Pounds in the UK and $1,00,000 in the US. Interestingly, the DICGC (Deposit Insurance and Credit Guarantee Corporation) cover has not been revised since 1993 unlike other major countries who have already taken the initiative. Considering the global scenario and the domestic norms, it’s definitely a difficult time for Indian depositors to have faith on the foreign banks. So much so that in a recently conducted 4Ps B&M and ICMR Survey on Indian banking industry only 17% voted for foreign banks when they were asked their preferred banks.

However, before jumping on to any conclusion, consumers must actually understand that the situation is also dependent on the host governments’ attitude towards respective foreign banks. For example, Barclays can be a safer option today as compared to Citibank for the fact that the British Government is reassuring its banks a big way. The corporate status of the bank is also a major decisive factor for the banks at the moment as those banks, which are working as a subsidiary of a foreign bank are relatively safer than those which just have their branches operating in India. Thus for the confused bunch of people like Mitali, it’s actually the time to first know their banks. So who is ready to prepare the KYB norms?

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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’s all about timing

2009-06-17T01:56:00.000-07:00

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

With blue-chips trading at their rock-bottom levels, it’s time for investors to strengthen their portfolios

American humorist Arnold H. Glasgow rightly said, “Success is simple. Do what’s right, the right way, at the right time.” And it’s time for the Indian investors to understand the value of his words. After a year-long carnage, most of the high-voltage stocks seem to be trading at their rock bottom level. That means stocks, earlier which were out of reach for the retail investors, are now standing right at their door steps to be picked up, but of course, not without following the basics.

Rajen Shah, Chief Investment Officer, Angel Broking Limited, advises, “This is the best time to buy into the market as all the stocks are on a low and once the market improves and stocks value picks up gradually, the investors would surely earn a fortune. The equity market is likely to roll back to normalcy soon and we would see the BSE’s Sensex again touching the 21,000 mark and going beyond three years down the line i.e. probably in February 2012.” Going by his words, this is actually the right time when retail investors should seriously consider some asset building exercise in the stock market with a long-term perspective in mind. Also they should look up to blue chips or such other stocks, which have already proven their metal in the market during earlier recovery phases, for a better output in future rather than indulging themselves in mid-cap and small caps that tend to be highly volatile. Agrees N. Wadhwa, Managing Director, SKI Capital Service Limited, as he says, “People should invest in large cap companies with a sound business model. They should keep themselves actively involved in the market dealings and keep themselves constantly updated about the market conditions to pocket a better return in the long run.”

Large caps like L&T (trading at Rs.580 today as against a high of around Rs.4,300 last year), Hindalco industries (trading at Rs.39 as against last year high of Rs.215), ACC Ltd. (trading at Rs.531 today as against a high of around Rs.1,030 last year) and Sterlite Industries (trading at Rs.250 presently against Rs.1,033 last year) et al can actually do wonders for an investor down the line. These are shares of such companies, which have the potential to shoot up really high once the markets witness recovery. But, investors investing at the moment must be a little patient in their approach and hold on to those scrip for the right time to arrive. After all right time is what matters the most in the stock market.

Deepak Ranjan Patra

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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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Detail of all IIPM branches
IIPM set to beat economic slowdown
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Death of Windows OS?!

2009-06-02T04:40:00.000-07:00

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

Google’s Android OS is all set to rewrite tales in the OS market. But can the newcomer really beat the big daddy?

After making inroads into the mobile phone market (with its G-Phone), Google has now decided to get back strong at where its journey started, the PC. Yes, the Mountain View giant is widely speculated to be working on getting its Android Operating System running soon on computers by 2010, thus challenging the dominance of Microsoft’s Vista and XP(which have been estimated to garner 95.4% share in the OS category by end-2009, by Gartner). Rob Enderle, Principal Analyst, Enderle Group asserts, “It is part of Google’s strategy to eventually displace Microsoft. If it is successfully able to get into the market, one would definitely think of incorporating a platform which is an open source and can be customised...”

What would however stand in favour of Google is its brand that has earned a reputation for being simple, user-friendly and secure. This also means that Google might just be able to get its software loaded onto low-cost PCs and notebooks, a field where Microsoft has failed miserably so far. Technically, the Android OS is based on the Linux operating system and is open to any programmer who wants to develop features for it. As per Gartner, today, Linux accounts for about 15% of the mini-notebook market compared to 85% of Windows. The report further went on to reveal that Linux had less than 1% share in overall OS market; this therefore is also an opportunity for Linux to gain good ground. Android would carry forward all the features of Linux, which definitely makes it a safer and more secure OS than Windows. For instance, it will be based on a multi-user design, built from ground-up to isolate users from applications, files and directories that affect the entire OS. Each user will be given a directory where all the data files and configurations will be stored. Thus, it becomes impossible to send a virus through email to an Android user. On the other hand, Windows has only recently evolved from a single-user design to a multi-user!

Then there is the modular design that Android would ape. From the kernel (the core “brains” of Android) to the applications, no two application would be inextricably intertwined with any other application in the OS. This is an advantage over the Windows OS which basically is monolithic in design (and not modular). The OS will also not be constrained by a Remote Procedure Call (RPC) model which are potentially security threats. An RPC is when one program sends a message over a network to tell another program to calculate something and then return the result. The reason it is called RPC is because it is immaterial whether the parent program is running on the same computer, or any other cube over the internet, anywhere. (Un)Fortunately, this is also where Android scores over Windows, as Windows users reply heavily on the RPC model which can’t be disabled even with firewalls!

Finally, the Android would be ideal for ‘headless’ (system hardware sans the monitor) non-local administration. For servers, this is often the ideal type of arrangement needed as a remotely administered server is not exposed to the same risks of security breach as a locally administered server. Really, it’s too early to predict whether Google will do to Os what it did to SEs (Search Engines, of course!). The interesting part of the story is how Windows reacts to the change in OS market dynamics... Perhaps, Microsoft has finally found a real worthy adversary; the war is on (hell ya)!

Arun Kumar Roy

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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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Detail of all IIPM branches
1500-plus IIPM students placed across the country with 44 bagging international offers
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IIPM - Admission Procedure
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IIPM : EXECUTIVE EDUCATION

Mob’ile attack!

2009-05-20T05:04:00.000-07:00

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

Will Dell make a successful foray into the smartphone market? Or is’t just a distant dream for the American?

Dell is rumoured to be planning an annoucement of its smartphones at the upcoming GSMA Mobile World Congress in Barcelona to offset slumping sales of personal computers. As per market reports, Dell plans to introduce smartphones that can compete with Apple’s hugely popular iPhone and RIM’s Blackberry. As per a report in WSJ, the phone will in all probability be based on Google’s Android OS and Microsoft’s Windows Mobile software. It is said that the Round Rock, Texas-based computer manufacturer, which is the second-largest producer of PCs in the world, has been designing the prototypes for quite sometime now. It is also being widely speculated that Dell has set up a core team for the same purpose at Chicago. The team is said to have been working on a top-secret smartphone project for the last year. This release of the cell phone would also work well for Dell, especially considering its year 2007 acquisition of Zing Systems, that could allow it to grant its users facilities of music streaming across its devices, for some price of course!

One question however remains: can Dell establish a position on the smartphones platform that can compete with the smartphones of Apple, RIM, Palm and others? Given the cool down in Dell’s core PC and server business in the face of the current donwturn, there is no doubt that the given launch can help it tap newer markets. But many analysts also don’t agree to this. As per them, in the face of a formidable competition from Apple, RIM, and the forthcoming Palm Pre success in the smartphone market is easier said than done. “There is a $3 billion opportunity for smartphones, but at present smartphones have a very small fraction of that. This means that the market at present is far from settled, thereby allowing new entries to more easily prosper,” avers Rob Enderle, Principal Analyst, Enderle Group. “Smartphones market has grown at a tremendous 30-40% (annually) over the past few years, and is expected to grow in the future as well,” adds Shushmul Maheshwari, CEO, RNCOS. The happy news is that today, everyone wants to move up the value chain and therefore own a smartphone. “If successful, Dell is likely to get a great piece of this significantly rising demand,” says Maheshwari.

Then there are many experts who foresee a bright prospect for Dell’s smartphone. Dell is well known for its online retailing, and if leveraged well, it could make its smartphone a compelling device. On the other hand, if Dell’s product is successful in gaining attention of end-customers, it will definitely have an adverse impact on other smartphone manufacturers. This would cause a reshuffling in the current market landscape, with Dell finding space in the market which is currently dominated by players such as RIM, Nokia, HTC, and Apple. Realistically however, it will take it some time to create a dent in the market.

Thankfully, analysts do not find anything wrong in Dell’s decision to enter the smartphone market, though it also depends on the final execution of design. “The iPhone could have been disastrous for Apple but they executed it so well that it is now one of their greatest assets. If Dell can execute it similar to how Apple did, this will prove to be very successful for it.” Wonder, if the day will ever come when Dell will have to choose over which product line to drop; but if at all, that will only be likely in the next recession, another decade later!

Arun Kumar Roy

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Source : IIPM Editorial, 2009

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

For More IIPM Info, Visit below mentioned IIPM articles.
Detail of all IIPM branches
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION

THANK TELCOS FOR SMALL MERCIES...

2009-04-24T02:48:00.000-07:00

IIPM set to beat economic slowdown

Cheap services and small handsets fueled India’s telecom boom. The stakes are not about to change anytime soon

The latest buzz to have gripped the telecom world is the launch of Reliance Communications’ (RCOM) GSM service. In a bid to increase subscriber tally, RCOM is targeting people whose Average Revenue Per User (ARPU) is less than Rs.300 per month, unlike the old ideology of chasing high-usage customers. With the second largest telecom operator making this move in the highly competitive telecom industry, it won’t be long before we see others treading a similar path. “RCOM’s GSM foray was expected to cause some disruption and their strategy to chase lower ARPU customers and giving away prepaid connections at virtually throwaway prices of Rs.25 each (along with free talktime worth Rs.900) are steps in that direction,” avers Prakash Gaba, an independent telecom analyst. But then arguably telcos had always taken pro-active steps to ensure getting even low-cost customers into their net. Vodafone’s chhota recharge was undoubtedly a step in that direction. Further, entry of new players like Unitech, Videocon, et al, would eventually make for still cheaper tariffs by at least 20-50%. Some say local calls would soon become as low as 10 paisa/minute!

“On VAS front too you find that micro-payments driven services are more popular and the trend is expected to only gain momentum,” explains another telecom analyst. Clearly, ringtones and caller tones will continue to be the most popular VAS after SMS. Also, analysts feel that the year would see a further reduction in SMS charges so as to ensure that the volume of SMSs do not fall in 2009.

A similar trend is also expected on the handset front. Though the low-end category in handsets have always been doing well, but of-late handset biggies had begun focusing profusely on the premium segment. The failure of Apple’s iPhone coupled with the slowdown induced fear instinct among consumers has made Nokia, Sony Ericcson, Samsung, et al, look afresh at the category. This year, they expect new customers in the mobile markets to be much higher than people opting for replacements. So, market leader Nokia has already announced the launch of Nokia 1200, very similar to their iconic Nokia 1100. To give more teeth to their entry level portfolio, the company has also launched handsets like Nokia 1208, Nokia 1209 and has plans for 1202, 2330 classic, 2323 classic... Even Samsung’s success (the company has now bagged the second spot in the handset market) is mainly attributable to the slew of entry level phones it launched last year. In 2009, this Korean handset maker is looking at expanding its base in the entry level handset market, positioning its sub-brand handset Guru300 as their star product.

The race to offer value-for-money, affordable handsets continues with Spice Mobile launching a people’s phone that costs only Rs.800 (minus a display screen & SMS sending services). But more popular perhaps would be Sony Ericsson’s R300 and R306, both AM/FM phones that are competitively priced. Clearly, slowdown or not, India’s telecom segment is going to be ruled by small ARPU’s, smaller recharges, cheap VAS and value-for-money handsets; while the phones themselves will get lighter, slimmer and yes, smaller on the pockets!

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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LIGHTS, CAMERA, CRICKET! AND BEYOND…

2009-04-02T04:35:00.000-07:00

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IPL WAS UNDOUBTEDLY A BIG HIT IN ITS FIRST SEASON. BUT CAN LALIT MODI CARRY THE IPL TORCH ALL THE WAY TO ITS SECOND SEASON AS WELL?

“We added a lot of music to the games... A Bollywood movie is three hours. This is a three hour function. A lot of good food and catering and popcorn and ice cream for the kids,” that’s how Lalit Modi, India’s first ever cricket marketer and Chairman Indian Premier League (IPL), describes the India’s version of the Super Bowl. He was on CNN’s Talk Asia. Certainly, IPL is not only remembered for the hype that it created among cricket fans the world over, but also for the oodles of star power, scandals and controversies created by it. So one day there was Vijay ‘Kingfisher’ Mallya firing team CEO Charu Sharma; next day, the spotlight was on cheerleaders and their skimpy outfits; then, Bhajji slapped Sreesanth on-field, followed by a ‘no entry’ board thrust at demi-God SRK when he tried to enter the dressing room. Above all, the moolah, which IPL generated in the first season created maximum buzz. And Modi was the man in the thick of it all, commandeering each piece of the IPL action. Modi does have his detractors, who blame him for spoiling the spirit of this gentlemen’s game. There are others who believe that the business model is flawed. But Modi gives it back to them. “If people are raising doubts about IPL making money they simply don’t understand our model,” he told 4Ps B&M.

But the glass is also half empty. Still in its nascent stage, IPL’s long-term success will not be a cake-walk. Constant innovation will be mandatory to sustain viewer interest and competition from Subhash Chandra’s rebel league (ICL) may also pose a challenge. Noticeably, the first season of IPL lagged on the merchandising end, as Gautam Bhimani, Commentator with ESPN–Star Sports feels, “Leagues in the West innovate to help merchandising gain a momentum. It will also pick up in India, but it all depends on the tactics adopted.” Clearly, there is still plenty of work to be done on that front. But, here’s the optimistic side. Much before IPL’s second season kicks off, companies have already started lining up to be associated with the league. “From a marketing perspective, IPL gives us a huge platform for promotion,” asserts Subhinder Singh Prem, MD, Reebok India.

Undeniably, Modi has created a successful brand, and keeping in mind the popularity of the format (T-20), the near future looks rosy. “T-20 format is here to stay, especially after India winning the T-20 World Cup,” mentions Bhimani. Modi has hit a sixer, but will he win the match?

Pawan Chabra

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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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Mad(e) in America!

2009-02-13T00:03:00.000-08:00

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American brands are dying much faster than ever, notes Pawan Chabra of 4Ps B&M...

Tales concerning the likes of the Lehmans and Merrills have made their way into the history books by now. The world has already witnessed stock market indices in many developed and developing economies touching newer lows in the face of the global slowdown! But the point worth noting here is that it is mostly the heritage American brands facing the heat of the slowdown moment... and perhaps only the well-established American brands are bearing the brunt of the meltdown.

4Ps B&M recently discussed the plight of the falling American brands (cover story dated 26 September-9 October 2008, titled ‘Some iconic American brands are dead… many more in trouble.’), and it was no coincidence that Brand Finance, after releasing its 2008 Brand Value Annual report, re-released its report with the corrected (eroded) values of the Top 100 Global and Top 100 US brands. And this was appropriate, because post-January 2008, US economy has been the key victim, badly hit by commodity price rise, credit crunch, rising unemployment and tumbling share prices at the bourses all across the continent. As Jeff Kagan, Telecom industry expert asserts, “Once established American brands can stumble, they need to reinvent themselves.”

And if the words of Brand Finance is to be believed, the current economic downturn has wiped-off a cumulatively thundering $67 billion from the list of Top 100 global brands. And as per the latest report, the world’s number one retailer and Fortune 500 No.1 Walmart has climbed three spots up the ladder to capture the top spot in the new listing of global brands. “Walmart has remained true to its core and has a history of being creative which has given it success even in this downturn,” points out John Crossman, President, Crossman & Company. Interestingly, amongst the top ten brands, Walmart was the ‘only’ brand that was able to appreciate in brand value. “Companies like Lehman Brothers and Citi never had strong brands; they are commodity companies (in this case, the commodity is credit) who are highly vulnerable to unanticipated events,” said Brent Scarcliff, Creative Director, Scarcliff, Salvador Inc.

The picture is getting clearer by the day, of the reasons why these traditional brands are suffering the most: clearly, it’s the lack of innovation. Apart from Walmart’s logo change campaign in July this year, there was hardly any innovative initiative from other brands to help them increase respective brand values. The logo change exercise of Walmart surely helped its brand, even in the face of this downturn and severe criticism on the grounds of ethics and in-store experience.

Then, we have brands like GM, Ford, Microsoft, Yahoo! and others, who have always been known as the strong brands in US, but their lackadaisical attitude towards brand building efforts and value maintenance has given them a big beating in the economic slowdown. “I would argue that Microsoft has been resting on its laurels rather than creating a strong brand,” Scarcliff added. It’s not only Microsoft though. Even Yahoo!, once the best search engine hasn’t done anything spectacular in the recent past which therefore enabled Google to run past in value. And then we have the speculations surrounding the GM-Chrysler merger which makes their respective brands even weaker given the low-success rate of a merger between two loss-makers in the auto industry [read the story on page 48, titled ‘Christ(ler), the GM Saviour].

One thing is clear though – American brands are falling in brand value, and emerging brands from the Third World are fast rising to dethrone them, slowdown, or no slowdown!

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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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Africa is an interesting market

2009-02-04T00:31:00.000-08:00

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Throw some light on Dabur’s business units in Africa?
Dabur had forayed into Nigeria in 2004 with the setting up of African Consumer Care Ltd. (AFCC) – a joint venture between Dabur International Ltd., which holds 90% stake in the venture, and Dabur UK. The company successfully launched its oral care brand Dabur Herbal Toothpaste in the market in December 2004, followed by Dabur Herbal Gel, Odomos Mosquito Repellent Cream and Medicated Soap in 2007. We also plan to enter into the Skin Care and the Home Care categories in future.

What feature of this market attracted you to invest?
The market offers huge potential. Nigeria is today one of the fastest growing overseas markets for Dabur, and we have already seen our business in Nigeria grow manifold in recent quarters.

What are your future plans as far as Africa is concerned?
Dabur has already set up a new manufacturing plant in Nigeria to make a range of toothpastes. This facility is being expanded to include a range of skin care products too. In addition, Dabur also has a facility in Egypt.

Is the time really ripe to enter the African market?
Africa is an interesting market and has a huge growth potential. This can be gauged by the fact that Dabur Egypt grew by a robust 49% in FY 2007-08, while sales in Nigeria more than doubled.

Source : IIPM Editorial, 2008

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

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Corporate China and India Inc. have also jumped into the fray

2009-02-03T03:56:00.000-08:00

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While China has till now adopted a largely heavy industries led investment approach in Africa, India’s approach is more entrepreneur and brand led. No doubt this once again pops up the debate of one’s superiority over the other. “One doesn’t have a choice in these matters. Certain business ecologies already exist in certain regions of the world and it is from that position of strength that entrepreneurs are able to venture into new markets and seek new partnerships or business opportunities,” Sood tells 4Ps B&M.

In as much, Africa is fast becoming the testing ground for India Inc.’s ‘brand’ battle with corporate China. According to the Emerging Economy Report by CKS, “Indian companies will have a far more prominent role in Africa’s economic development than China, even though China has been a far more aggressive investor into Africa over the past decade.” Certainly, Indian industry is itself a private sector driven industry and this is what drives the Indian economy. The private sector moves where it sees opportunity and this instinct is what gives Indian brands an upper hand. “Anyone who has lived in both India and China will agree that the Chinese have been far more successful at creating mass urban and cross-country infrastructure. On the other hand, just having quality infrastructure is not enough for Africa - the continent needs jobs, and that’s something Indian service sector companies can provide,” says Sood.

But there are many who reject the avowal. “I don’t think there is any question of a ‘brand war’. There are so many unexploited opportunities in Africa and believe me, both Indian and Chinese companies can co-exist,” avers Thatty of Bank of Baroda. But in reality, the Indian brand building prowess is fast becoming a major plus for Indian biz in Africa. Agrees Sood, “Indian corporate and consumer culture is almost a generation ahead of China in terms of understanding how to participate in branding relationships.”

Analysts shun comparisons, believing that the question should not be what is going to help India or China, but what is going to help develop African countries better and faster! But it is a fact that today comparatively speaking China has a far better investment record in Africa than India does. In fact, till a few years ago, Indian companies were not prepared to take risks in the low credit rating African markets. China scored better largely because of its state-led investment climate. But with their new found zeal Indian entrepreneurs may yet top that score card. What’s more, critics say that China is more restricted to the B2B model in Africa as the perception about Chinese products is comparatively lower than Made-in-India stuff. While the West has already encountered under-quality Chinese goods, it’s now Africans who talk of “zing zong” products - by which Zimbabweans mean products that ‘break easily’.

Which is not to say that India and China are going head to head around the world. In fact, it may never come to such a pass. But for now, India has an upper hand so far as front-end or consumer oriented businesses go, while China is strong in manufacturing and infrastructure development. If China’s over-arching presence in the oil and mineral rich northern Africa is a reality, then the fact that Indian brands are driving the more metropolitan regions of the continent crazy. Hope you’ve not forgotten the mom and her three kids in that Lilliput store in Cairo?

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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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Oh, no, we’ll do it like ‘em Indians!

2009-01-17T00:48:00.000-08:00

What transpired in the world economy last month will undoubtedly be remembered as an epic turning point by future economic historians. Credit and finance markets crashed like nine pins across the world. The thunder effects of which were felt in India as well, as stock markets dived southwards, with the Bombay Stock Exchange Sensitive Index dropping by 469 points on September 15. The same week when Lehman Brothers collapsed, AIG got nationalised, Merrill Lynch acquired Bank of America; Washington Mutual and Wachovia got washed out, the Indian realty index (which was the worst hit) fell by 7.6%. Since then, despite the fact that stockprices in India have seen colossal swings, shares of real estate firms have continued to be in a depressing mode, declining a total of 20% (as on October 1, 2008). Many analysts had claimed that all this would finally force the Indian real estate players and the industry to consolidate.

Interestingly, the market though is still very optimistic. “Despite the momentary slowdown witnessed over the past 12 months, 62% of developers foresee Indian real estate embarking upon a high growth trajectory in the long term,” says a recent FICCI-Ernst & Young report on the Indian real estate market. Will the uncertain realty scenario lead to some expected marriages of unlikely bedfellows in the real estate industry? Some feel that consolidation is evidently inevitable. With the cost rising and non-availability of enough funds becoming a threatening issue, consolidation seems to be the only safe way out. Many feel that not only the smaller players are feeling the heat but rising input costs and the demand slowdown have even scarred the established players. Pradeep Jain, Chairman, Parsvnath Developers elaborates, “The construction sector is feeling the heat of rising steel and cement costs as they contribute heavily to the total cost (about 15-20% and 10-12.5% respectively)... This has put a question mark on our efforts as developers to provide affordable housing facilities to middle and lower middle segment buyers.”

Deepak Parekh, Chairman, HDFC, also voiced his concerns over the distressed situation and said, “The present situation may call for some consolidation within the sector. I believe consolidation has already started taking place in the real estate sector.” The magical spell, which the sector was enjoying for the past few years is clearly getting over.

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Source : IIPM Editorial, 2008

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

The third man of the distribution triumvirate is Kulmeet Makkar

2009-01-09T02:01:00.000-08:00

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Kulmeet Makkar: The third man of the distribution triumvirate is Kulmeet Makkar (of Big Music and Home Entertainment). With 24 years of experience behind him, of which 19 years in the media industry, Makkar was with Saregama India before joining the BIG gang in 2007. Sitting in his plush office in Andheri (West), overlooking the bright lights of an uber shopping mall across the road, Makkar is still waiting for his place under the sun in the BIG scheme of things, or at least till the time that BIG Motion Pictures creates a critical mass of entertainment content to distribute. Makkar expects a passive 2008, but is confident that 2009 and 2010 will be BIG Video’s year of reckoning. “In 2009 and 2010 lots of BIG Pictures content will be handled by us,” he explains. Till then, Makkar has been planning and executing all group events for ADAG, including the Reliance Power IPO event, as also the recent BIG TV launch.

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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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A prescription to end corruption

2008-11-13T22:56:00.000-08:00

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Unique identification of every citizen will help kill the corruption malaise in developing economies

Kris Dev,
ICT & e-Gov Consultant, Manthan Awardee for e-Inclusion & Livelihood Creation

What ails the under developed and developing nations? Reply: corruption leading to self perpetuating poverty. Reason: lack of honesty & transparency. Result: lack of accountability for sustained growth. Economy is divided between rich & poor; the rich are growing richer and the poor are growing poorer. The poor cannot afford essentials such as food, clothing, shelter, health, education and social security. The division is so sharp between communities, while a rich family can afford to spend ¤500 per week on food items, a poor family of the same size can hardly spend ¤5 per week.

Does this mean all citizens living in a poor nation are poor? Well the answer is a ‘NO’. The wealth in a under developed/developing nation is skewed. Almost 80-90% of the wealth of the nation is in the control of say 5-10% of the population. The majority of the population hardly has access to any wealth and live in abject poverty.

One of the biggest factors is ‘Corruption.’ It is the cancer eating into the vitals of the society. It has permeated into all facets of life, affecting the poor and voiceless. Today, the common man with no money or muscle power, cannot think of getting any thing done in the developing world, without having to pay bribe.

Global institutions such as World Bank, IMF, and UN must enjoy legitimacy from their member countries and the international community. They must be responsive, with the interests of all members, especially the smaller and poorer, being taken into account. The governance of these institutions must be flexible, must respond to new challenges, national priorities and specific circumstances.

A scathing report from the Independent Evaluation Office (IEO) of IMF highlights the lack of transparency and accountability in IMF. The IEO measured governance along four dimensions – effectiveness, efficiency, accountability and voice – and against three standards – the Fund’s own governing documents, other international organisations, and private & public-sector corporations. The report finds accountability and voice are the weakest features of the Fund’s governance and these weaknesses entail risks to the Fund’s legitimacy, which in turn has a bearing on its effectiveness.

If this is the situation with global institutions, we can well imagine what would be the situation with national and regional institutions. No wonder they abound in corruption of all sorts and get away with it. Then, how do we get over this corruption mania? One sure way would be to plug all the leakages in the system. This cannot be done without active support of the governments and its citizens. A unique identification of every citizen is the primary requirement. With the advent of ICT tools, every citizen can be uniquely identified from birth to death using unique identification methods such as fingerprint, iris, hand vein geometry and DNA linked to their ID, name, photo, etc.

A Multi Purpose Biometric Smart Card for every individual and organisation linked to a money account and a e-Tool to link every citizen and service provider/public authority including the vertical and horizontal hierarchy of governance can be used as a single window of transactions for G2C, G2G, B2B, B2C, etc. If the transactions are thrown open, then total transparency and accountability can prevail, as envisaged in the Right to Information Act.

Healthy citizenry can be created by covering all aspects of citizens from birth to death such as health, hygiene, housing, education, employment, expenses, consumption, savings, social security, et al, based on genuine physical transactions and not ghost transactions. Thus corruption, money laundering, arms trade and terrorism can be eliminated and all round peace and prosperity can prevail as every one would feel good that no one can cheat any one and all have equitable opportunities to contribute and grow.

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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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Bose Wave Music System

2008-11-07T03:42:00.000-08:00

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Technical Specification

Waveguide speaker technology, multiple CD play modes, MP3 CD and CD-R/RW playback capability, large visual display with extra text information, digital AM/FM tuner with seek function, automatic ramping, shielded speakers
PRICE: Rs.30,263
WARRANTY: 1 year limited manufacturer’s warranty

Simple to set up and use, sound quality from this second generation Bose Wave music system is much superior as musical notes extend a half-octave lower than the original Wave Radio/CD system. With slot-loading CD player, which now also supports MP3 format, the system surely happens to be one of the finest music systems in the market. Further, an easy access to radio music and programmes with built-in FM/AM antennas, it only sets a whole new standard in audio system. In fact, amplifiers and speakers are all built-in so that one can enjoy quality sound right out of the box. Well, it also has award-winning killer looks which will either tempt you or haunt you for days and days...

Marketers’ delight: For consumers who want a compact yet powerful audio system which is delightfully easy to use.

Tester’s note: Pros – Attractive design. Excellent sound. Line-in support for other devices. Cons – On the expensive side. No bass or treble control.

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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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Inflation deflating Congress

2008-10-21T02:09:00.000-07:00

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Inflation has been a critical factor in the downfall of governments worldwide. IFor instance, it was the unaffordable prices of essential commodities that ousted Indonesian President Suharto in 1998 and senior Bush in 1992. Even in India, many ruling parties have paid the price. Will Congress survive it? By asad

Many a time, inflation has proved to be a wrecker of governments worldwide; and in India the scare is quite perennial. In 1980, the skyrocketing prices of essential commodities delivered that most essential of all lessons to the left-of-centre Janata Party; and it paid the price that inflation inevitably exacts. In the 1998 Delhi local elections, the voters put the BJP-led coalition out of business in the Onion War that saw onion prices hitting the aam aadmi’s roof.

And ten years down the line, the ruling Congress-led UPA has that same ageless worry gnawing at its very foundations. Wholesale price-based inflation has already touched a 40-month high of 7.41%, with everything from fruits, vegetables, oilseeds, meat and milk becoming dearer. For UPA, the price rise couldn’t have come at a worse time. The glee Congressmen experienced in 2004 – when the BJP was hounded out for failing to deliver on its pledge of ushering in social and economic change – has all but vanished. And at least on the subject of price rise it’s the saffron party that calls the shots and is eager for all the photo ops.

Already, inflation is the leading item on the opposition’s agenda. Warning of nation-wide protests, L. K. Advani would have the Congress “forewarned” of its “culpability” for failing to rein in the monster of inflation. “The hungry masses must make these exploiters pay for this crime,” he said. The barb seemed to have been directed chiefly against Finance Minister P. Chidambaram who, around February-end, had drawn loud partisan cheers for his populist budget pledges that had brimmed over with eye-popping tax cuts and a massive Rs.600 billion farm debt waiver scheme. But the icing was the Pay Commission largesse.

Meanwhile wholesale vegetable prices have shot up by an incredible 4.1% and pulses have become dearer by around 1.2%; with retailers and consumers experiencing the usual jitters. Prime Minister Manmohan Singh has admitted that the steep rise in food prices is hurting inflation management, but has ruled out arbitrary controls. The IMF forecast estimates India’s inflation at a moderate 5.2% in the current calendar year and 4% in 2009. But the voter does not care about stats; sop or no sop, he will vote for the party that can deliver.

And all UPA coalition members – particularly the Left – realise that nothing can upset their winning calculations more than the general discontent with the government over the unbearable cost of living. The United National Progressive Alliance (UNPA) has joined forces with CPI to launch anti-price rise protests. “The government will pay a high political price for inflation,” said senior CPI leader D. Raja. So how is the ruling alliance likely to fare in the next elections? Former Karnataka chief minister S.M. Krishna told B&E that he feared for his party in the upcoming assembly polls due to its failure to control inflation.

What’s more, even the middle classes are beginning to fear that the sagging economy will eventually erode their lifestyles, pensions and business prospects. Said a Delhi-based housewife Nilofer Raquib, “I am really worried with several vegetables selling for over Rs.40 a kg.” The government, of course, knows that the baby steps it is taking will not protect it from the voters’ wrath. “We have no magic wand, the whole world is affected,” is the line that big wigs of the ruling party are mouthing.

Said Minister of Earth, Science and Technology Kapil Sibal, “Prices of agricultural commodities had shot up by 73% in the international market between August 2007 and March 2008.” His point is taken. Inflation has notched up record highs in all emerging markets such as China (8.7%), Russia (11.9%), Argentina (7.3%) and Turkey (8.1%). But Sibal must realise that inflation has led to the downfall of governments worldwide. In the late 1990s, this was the case in Thailand, South Korea, Indonesia and Malaysia. It was the unaffordable prices of essential commodities that ousted Indonesian president Suharto in 1998.

Economic slumps have dashed the aspirations of presidential hopefuls in the US. George H. W. Bush found this at his cost when he lost to Bill Clinton in 1992. The two exceptions in US history are Harry Truman and Republican Warren Harding, who snatched the White House from the Democrats in 1920, even as recession was under way. But there can be no parallels, particularly not between the Indian and US scenarios. It’s absurd, for instance, to speculate whether Sonia’s fortunes will go the Truman way.

Will people care less about their pocketbooks and give the UPA the benefit of doubt? Will they be as receptive about the global recession line that the government feels forced to hammer on? Just as there is no magic wand, there are no easy answers this time.

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).

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E. SREEDHARAN

2008-10-16T00:18:00.000-07:00

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

E. SREEDHARAN
Still on the fast lane

He has achieved several benchmarks and has several feathers in his crowns. But such recognitions can never be enough to describe this man whose vision is limitless. We are talking about the seventy-one years young Metro Man – E. Sreedharan. He changed the face of Delhi by giving it a high tech touch of metro but what many of us today don’t remember is the hurdles that he has to face at that point of time from the so called social care takers. Palpable from his earlier performance, nothing can bog down this buoyant man and hats off to his dare-devil attitude, Delhi has its Metro today. “He’s a man whose contributions have always been overshadowed. I being in the retail & real estate industry know that whenever he chalked out a metro expansion plan, he came out with an optimum solution of not disturbing existing infrastructure,” feels Lalit Kumar, CEO & Director of Ebony Retail.

It’s not Lalit Kumar alone, several others of his ilk, who know Sreedharan agrees that he is a man of action and modest enough to create a project that benefits all. Bucked up with such a mission he want’s to do more for the Indian masses. Well, his track records says that no chains can arrest his dreams.

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.
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The ones who’ll make it...

2008-10-04T03:21:00.000-07:00

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

Battle-scarred veterans talk to aakriti bhardwaj and kanika dhupar about the youngsters who’ll be the standard bearers for the nation in the next 25 years

Nikhil Chopra on Ishant Sharma
“It has to be Ishant Sharma! He’s young, energetic and one of the quickest bowlers in India. He’s somebody with his head on his shoulders and is one of the players who will serve the country for a long period of time. He’s only 19 years old, has little experience and still has performed very well internationally. He handles the pressure well and is always looking to improve his performance. This kind of determination from a 19-year-old kid is commendable.”

Ruskin Bond on Anita Nair
“Amongst the many new writers, I think Anita Nair is going to make it big. She’s original, and is always looking to do things in a different way. Above all, she writes really well, and has a unique style that makes her different from all the rest. She has immense potential, but I would like to believe that her best is yet to come. So far, her novel Ladies Coupe is my favourite.”

Sudhir Mishra on Neil Nitin Mukesh
“A lot of new talent is coming up. Neil Nitin Mukesh is someone I think will go very far. There is a rare quality about him, an endearing vulnerability about him. Apart from the fact that he is very attractive to look at, on the screen there is a very appealing softer quality about him. And of course, he is a very good actor. To be a star in these times, all of these things have to come together. Since Neil partly comes from the film industry, he will be guided right. I think he would make a versatile actor, and as he grows, he should choose the right films and work with the right directors from the beginning of his career. As he has only done a realistic film so far, many of his abilities have not yet been showcased. He is a very good dancer as well. I think he has really good potential for the Indian screen.”

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.
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Pay or get paid for GHGs

2008-09-26T00:41:00.000-07:00

IIPM - Admission Procedure

Carbon emission trading is not only catching up, but also reducing after-affects of trade

The ever growing concerns among environmentalists and policy makers to curtail pollution along with keeping the economies growing, have given birth to the concept of emission trading. With the world getting more and more business-like, day by day, this carbon emission trading makes more sense than other similar measures.

Clubbed with this, increasing acceptance by countries of Kyoto Protocol and growing social responsibility, this trading scheme is most likely to take shape of a multibillion-dollar industry.

This system entails the member, company or country, to meet their carbon emission targets. The members are actually countries (as in the case of the Kyoto Protocol), or companies (as in the case of a domestic trading system). The countries or companies have to buy units (credits) in order to emit pollutants above their set targets, or even may sell units if they emit pollutants below their set targets. The Clean Development Mechanism (CDM) under the Kyoto Protocol allows industries in developing countries to create emission credits (units).

In simple words, carbon credits are nothing but an equivalent to one tonne of carbon dioxide or its equivalent Greenhouse Gas (GHG). A limit is prescribed to the amount of greenhouse gases a firm can let out in the atmosphere.

The carbon credits are “Entitlement Certificates” issued by the United Nations Framework Convention on Climate Change (UNFCCC) to the implementers of the approved CDM projects. These credits/units can be marketed at both domestic and international level. Under a typical emissions trading scheme, industries are issued an allowance for emissions up to a mandated cap. If the industry uses only a partial allowance, the rest can be sold to other industries.

The initial allocation or the capping is based on traditional provision where the capping or emitting provision is decided on basis of its trend of emissions. Moreover, the national budget for environment is left to be spent on environmental activities and further can be invested to earn credits by reducing the national pollution level. The emission trading can fructify to best results when, a safety valve is applied to it. This system has an emission cap, with tradeable permit but the maximum (or minimum) trading price is fixed. Thus, the emitters Inc. is left with choice of either trading their credits/units in the market or purchasing them from the government without charging prices beyond the permissible limits (safety valve). Consider this: According to the World Bank’s Carbon Finance Unit, 374 million metric tonnes of carbon dioxide equivalent were exchanged through projects in 2005, a 240% increase, relative to 2004. What’s more, the size of this market is estimated to be anything between $40 billion and $100 billion by 2010.

The current size of the emissions-related trading market is small globally but it is expanding by leaps and bounds. As per reports by the World Bank (May 2006), the emission trading market is worth about $30 billion for 2006, but the market size is growing exponentially.

The EU-ETS (European Union-Emission Trading Scheme) is a trading scheme using the cap and trading scheme, the UK’s Climate Change Levy is a price system using a direct carbon tax and China uses the CO2 market price for funding of its Clean Development Mechanism projects with the safety valve clause.

In order to check increasing local levels of pollutants, the EU have their greenhouse gases scheme in place, the US has established their own national market schemes to reduce Acid Rains and several other regional markets schemes to check emission of Nitrous Oxide. Nevertheless, the trading market for emissions is still ruled by the hazardous Carbon Dioxide. But then the existing emission trading market also addresses the problems and pollutions dealing (with local problems) with smog, Sulfur Dioxide and Nitrogen Oxides. The success of these localised policies shows that few customised local schemes should be in place to check the pollutants unique to a particular locality.

Even the Chinese environmentalist officials had started many such trading schemes and had seen noteworthy success and have also initiated several other emission trading test projects. Learning from their counterparts, Hong Kong Government had also started many a pilot emission trading tools which aim to reduce amount of Sulfur Dioxide and other pollutants. This will not only reduce concentration of pollution over China & Hong Kong but also over whole of Asia and the world. The future of this trading system is very promising as the whole of Asia (especially the developing countries) is largely facing global pressure to reduce such emissions.

With CDM being the part of Kyoto Protocol, the Chinese companies are making big bucks (61% market share in an emission trading) from it. They are actually selling their credits (called Certified Emission Reductions) to companies in rich economies, who whole-heartedly buy them to fulfill their stringent emission targets. Whereas, Asia as a whole dominates about 80% of the CDM market. India also captures a giant pie, grabbing not less than 12% of the market in 2006, a 3% increase from 2005 figure. It’s no doubt that emission trading has created a large pool of brokers like any other trading system. These brokers range from foreign banks to obscure middlemen.

The whole concept of carbon trading is based on global co-operation, but with developed countries (especially USA) showing reluctance, the whole essence of the scheme seems to lose relevance or go into oblivion. Studies of British industry published by Britain’s Carbon Trust undermine the idea that a carbon price of $30 a tonne would be a huge burden. However, the same Carbon Trust reveals that the ETS can bring about deeper cut-backs in its next phase, without harming competitiveness. The recent rush in carbon credits trading in the EU is an indication of future of this immature trading industry.

Emission trading is any day better than the direct carbon tax regulations. This not only reduces the chance of parallel black market (as in the case of carbon tax) but also is cheaper and politically viable.

India: the future market

India is one of the leading players in the carbon trading industry as it generates a huge amount of carbon credits through CDM. According to industry estimations, the carbon trading would touch a figure of US$ 100 billion by 2010. Presently, no less than 300 projects are registered with CDM while the total issued carbon credits with India stands at 34,101,315.

Moreover, the recent surge in project registration with CDM shows a whole new tappable market. In 2007, about 150 new projects were registered with the UNFCCC. The number of expected annual carbon credits in India is predicted to be about 28 million and with each of these carbon credits being sold at 15 euros.

As per Multi Commodity Exchange of India Ltd. (MCX), industries like agriculture, energy, manufacturing, fuels, mining & mineral, chemicals and afforestation & reforestation are the most viable industries to generate carbon credits. With MCX interested in playing a major role on the emission trading by adding carbon credits to its existing portfolio of commodities, the existing and potential market of carbon credits had increased manifold. This will also help in getting around the price hedging, advance selling and avoiding counterparty risk. MCX also will give the seller a platform for demonstrating their bargaining capabilities.

Sray Agarwal

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 : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
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IIPM, GURGAON

HCL’s ‘nano’ ambitions

2008-09-22T23:50:00.000-07:00

IIPM : EXECUTIVE EDUCATION

The company launches the smallest and the cheapest laptop

While India is still wondering about the practicality of Tata’s Nano project, another Indian manufacturer HCL has gone ahead and embraced the ‘Nano’ concept. HCL Infosystems has unveiled its MiLeap series, which is supposed to be the smallest and cheapest laptop available in the country. The notebook has a 7-inch LCD screen, weighs less than a kg and has an attractive starting price point of Rs.14,000.

Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd. commented on the product, “This revolutionary new range of ultra portable laptops will herald in a new category of computing devices, opening up a wide range of new usage scenarios and application areas.”

Well, HCL’s MiLeap can definitely be called revolutionary when it comes to price. Before the launch of MiLeap, the entry level laptop segment was dominated by companies like Acer, Compaq & Zenith but even these companies were unable to break the important Rs.15,000 price point. While HCL is the first company in the world to launch a laptop at this price point, globally its counterparts are focusing more on performance and design. Recently, Apple launched its super-slim laptop called the Macbook Air. With its innovative slim design and ultra portable features, the ‘Air’ gives the mobile computing a completely new standard. Even Lenovo is revolutionising the mobile computing with its new IdeaPad range of low weight laptops.

With the tech giants realising the growing importance of laptops in daily life, the futuristic technological innovations in the laptop arena are going to be even more exciting.

B&E edit bureau: Neha Saraiya

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).

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Big Dada Bets on Big Adda

2008-09-04T03:00:00.000-07:00

IIPM : EXECUTIVE EDUCATION

With access to content, infrastructure and mobile platform, RCom is in a position to ring in a new convergent future, believes DEVDEEP SINGH

Let’s start this story from March 2003, when, despite eight years since the launch of mobile services in the country, owning a mobile was still a dream for a majority of Indians. At that stage, Airtel ruled the market with 3 million subscribers, closely followed by the state-owned BSNL (2.2 million) and Hutch, now Vodafone, (2.1 million). But over 90% of these subscribers lived in metros. It was then, while GSM players were competing with each other that Reliance Infocomm (now Reliance Communications) decided to launch Indiamobile services on the CDMA platform. Within the first eight weeks of the launch, the company witnessed a record of 80 million minutes of usage by its subscribers. Today, as tele-density in the country has increased from 1% in 2003 to 23%, RCom, with its customer base of 38 million, just behind Airtel’s 51 million, has proved to be a success. It has changed the way service providers, customers, regulators and experts think and feel about telecom. It transformed the manner in which people think about the future of communications. B&E analyses how RCom provided the right ring tones for a connected India.

Tactic No 1: Become the price warrior

The success of RCom is significant considering the price revolution it initiated in the sector. While the likes of Airtel were offering STD calls for over Rs.3 per minute, Reliance empowered people to make domestic long-distance calls for a measly 40 paise. Although this was applicable for a Reliance-to-Reliance call, it gripped the price-sensitive nation and, by June 2003, the company amassed a subscriber base of 1.2 million. Says S. P. Shukla, President (Wireless Group), RCom, “According to Dhirubhai Ambani, a telecom business would achieve its goal if it could make mobile telephony services available to the masses at rates that were cheaper than the postcard.”
Not only did RCom implement this vision successfully, it strategically reduced the cost of owning a mobile at the entry level. With the Monsoon Hungama scheme that was launched in July 2003, RCom allowed individuals to own a mobile for just Rs.500. Such was the frenzy created that in next few months, the company penetrated deep into towns & villages & became one of the top mobile service providers. “Reliance has always offered the cheapest monthly plans. Also, their valued added services like Hello Tunes and others are cheaper than other operators. It’s a treat to be an RCom customer,” says a Reliance mobile user.

Tactic No 2: Go grassroots

After conquering Version 1.0 in the telecom battle (affordability), RCom focused on Version 2.0 (reach). Anil Ambani confidently asserted, “Our network expansion will give us the power to drive the market and stay ahead of the curve.” And RCom has expanded aggressively. While the company’s wireless network extends to over 10,000 towns today, it plans to take the count to 23,000 by 2007-08, covering 90% of India’s population. To achieve this, RCom plans to invest a massive Rs.200 billion in the coming year.

“The company’s network is undoubtedly amongst the vastest in the country and it has proven its execution skills. In fact, in seven months of the full-fledged CDMA launch, it became the top mobile operator in India,” says Harit Shah, Telecom Analyst, Angel Broking. And it also boasts of an extraordinary distribution channel. As Shukla comments, “We have the largest chain of exclusives Reliance showrooms under two brands - Reliance World and Reliance Express. No other operator has a phenomenal reach of 2,000 exclusive outlets where both sales and services are offered.”

RCom’s rural strategy has paved the path for its overall growth. “When we went rural, everybody contradicted our move. However, a few months later, all the other service providers were talking about going to the rural sector,” explains Shukla. In fact, it was RCom, which envisioned the approaching maturity levels in the metros, and targetted mass markets in India’s small towns and villages. It rightly predicted the rise of the rural middle class.

Tactic No 3: Be a value-added player

RCom became the telecom disrupter in value-added services. When GSM players like Airtel and Hutch were betting on GPRS and EDGE services, Anil entered with a slew of other services like integrated wire-line and wireless services, and convergent voice, data and video services, which took the mobile content market by storm. Interestingly, the competition failed to recognise that Anil was planning something bigger.

This turned out to be the ultimate weapon of convergence, aimed at redefining the scope and limits of the traditional telecom business. “Today telecom is no longer about voice or data; it is about communication in the widest possible sense of the term,” said Anil Ambani. Adds Subrato Das, Head (GSM - IT and Special Projects), RCom, “Reliance has established a pan-India, next generation, integrated (wireless & wireline), convergent (voice, data & video) digital network capable of supporting best-of-class services spanning the entire information-communication value chain.” Adding vigour to his convergence dreams, Anil recently managed to partner with Microsoft for his IPTV foray. “Until now, TV has been a broadcast, ‘one-size-fits-all’ experience. IPTV promises to offer subscribers more choices, control and convenience and a unique and more satisfying user experience,” he said. In the meantime, he has already purchased strategic stakes in firms, or finalised other financial alliances, that will allow him to access news, entertainment, music, gaming and other content that can be accessed on a Reliance mobile phone.

Apart from dominating the value-added services domain, RCom is a market leader in the enterprise segment, offering a variety of telephone solutions ranging from Internet, data networking and IT infrastructure services, helping companies meet their connectivity and automation needs. For the uninitiated, RCom serves over 800 of top 1,000 companies in India. No other telecom player in India seems to be serious about the enterprise segment. In that sense, RCom intrusion in this segment makes it India’s largest integrated telecom player.

RCom has now geared up to provide more headaches to competitors with its foray into GSM. Already, Bharti Airtel, Vodafone Essar, and BSNL are fuming and preparing themselves to face the Reliance belligerence. They have even resorted to legal recourse. But customers are not complaining as they feel that they will now witness price cuts and value additions in the GSM arena. Looks like another disruption is in the offing!

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).

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