SRI LANKA: PRESIDENTIAL POLITICS

Rajapakse is turning the Lankan constitution into a useless shred of paper

By destroying the self-governing nature of key institutions and reducing them to puppets, Rajapakse is obviously not going up in global popularity ratings. To further cement his hold over the government, Rajapakse is also employing dynasty politics. Now, he is also in charge of various ministries – defence, finance and ports and aviation – and has appointed his brother (who is not an elected member of parliament) as defence secretary, in charge of all three divisions of armed forces. Two other brothers have portfolios and his son is also an MP; this is apart from many cousins getting plum bureaucratic postings.

Not only can Rajapakse now easily manipulate the state machinery to keep himself in power, he has also managed to leave little of what the contemporary world knows as democratic governance. Yes, elections are still held – the last opponent (Fonseka) has been jailed and a court martial is in progress. Long live Sri Lanka; long gone democracy!

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Source : IIPM Editorial, 2012.

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

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The Domestic Airline Business

Inorganic Activity is Inevitable in The Domestic Airline Business, given The Huge Overdues, debt load and losses. The Skies are open for Consolidation and pe activity. Sellouts or mergers – what will happen? 

Given the strong promoter backing of SpiceJet, JetLite and IndiGo, these three cannot be counted as takeover targets. Not for now. But cash infusion through the PE route is a strong possibility. In this regard, the spotlight is on the two profitable SpiceJet (PAT: Rs.0.61 billion during FY2010) and IndiGo (Rs.5.5 billion).

Acquisition of controlling stakes in Indian carriers by foreign carriers cannot be ruled out either. Though the government has not taken a decision on this, since March 2010, discussions have been on to increase the FDI limit in aviation to 74%. [Given that Air India is in trouble, it is expected to become a candidate for such a case soon!] So we could well see a repeat of the Emirates-SriLankan Airlines deal where Emirates bought over 40% of SriLankan to take control of the airline and bring about a significant improvement in the financial & operational performance of SriLankan. There could even be a PE firm interested in one of the larger Indian airline companies, whose huge debt load ($13 billion in total – the highest in Asia) and poor financials automatically would make it a steal, as Port Washington-based airline industry expert Robert Mann (CEO of R. W. Mann & Co.) tells B&E, “Where barriers to entry have risen, consolidation has stabilised pricing and airline fortunes. Barriers to entry remain low in India, thus there has been limited success of M&As to date in India. In this case you could see a pure financial player – a PE firm – buying a huge stake in an airline over the next few quarters.” It is not to be forgotten that PE investor Texas Pacific Group’s entry into management and restructuring of Continental Airlines and its simultaneous board-level involvement with America West helped the merged entity bounce back. Though it is always considered better if the suitor is an airline, for selling airline seats may be selling hotdogs, but running an airline is no driving around fast-food stall. And the domestic circuit would hate to see another failure, whether an airline-airline or a PE-airline deal. In the past there have been many instances of non-airline investors having largely failed in airlines such as Malev, Mexicana and other Asian airlines. And many-a-time, the accrued debt has overwhelmed the airline and its revenue-generating potential.

So the forecast is – over the next 24 month, there will be some notable inorganic activities in the sector. At the same time, it is important that the government gives the domestic airline industry a chance to behave rationally. Someone has to be allowed to fail. Air India’s failure in July 2011 to gain entry into Star Alliance indicates that there is no clear way ahead for the carrier and that it continues to operate under short-term begging measures. With airlines on perpetual financial life-support, the industry cannot invest in a successful business model. Similarly, ailing companies will continue to deter new market entrants whilst at the same time, plead for protection to maintain their presence (like the shield being put in place to restrict Lufthansa’s A380s entering the Indian market). This neither benefits the industry nor the investment community. Creating ‘zombie’ carriers and merging them – both are fruitless. The failed merger between Pan Am and TWA in the 1980s is a lesson. Fundamentals have to improve to have a healthy business environment – and then will consolidation make sense for Indian carriers.

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Source : IIPM Editorial, 2012.

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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Why Isn’t Japan being Sanctioned by IAEA?

Had Iran been the purveyor of a nuclear disaster, IAEA and most definitely US would have jumped on to the bandwagon to issue global sanctions against the nation. Today, Japan – a nation which criminally failed to make a fail-safe nuclear plant and has continued to lie to international communities about the amount of radiation leakage from Fukushima – is not even being castigated for its abhorring mistakes, leave alone being sanctioned

Years ago, a war was suddenly ended, and yet a grave crime was committed on humanity with the twin atomic bombings on Hiroshima and Nagasaki. What made it worse was the nuclear race it initiated among nations, putting the entire mankind under serious threat. Not surprisingly, Japan, the first (and hopefully the only one forever) victim of a nuclear attack; stayed away from nuclear weapons, while it continued to judiciously use nuclear energy for peaceful ends. However, the country perhaps did not realise the perils of using nuclear reactors not insulated against the laws of nature. March 11, 2011 proved to be a day of mourning for Japan when it was hit by an earthquake followed by a tsunami; events that subsequently exacerbated the nuclear disaster at the Fukushima nuclear plants.

Yes, the lives lost are mourned. But what cannot be forgiven is Japan’s deliberate and criminal behaviour towards two critical issues: Firstly, it is unfathomable that a nation can claim that a tidal wave ensured that its nuclear reactors went out of control. Given the infinitely exponential danger levels of nuclear radiation, wasn’t it Japan’s primary responsibility to operate only fail-safe reactors that automatically shut off at the first instant of a natural disaster? Or is Japan, which experiences some of the maximum frequencies of earthquakes, peddling to us the theory that it didn’t know what a natural disaster was? Secondly, what Japan did by deliberately lying to the world about the nuclear radiation leakage levels from its four damaged nuclear reactors at Fukushima is not just a crime against humanity, but should immediately invite global sanctions by both the IAEA and the Western world. This irresponsible doublespeak from Japan is unpardonable – especially when the world is going to suffer hugely due to Japan’s intransigence, which includes its act of releasing radioactive water into the Pacific Ocean that killed millions of sea animals in a matter of one week.

The Fukushima incident is considered now to be the second-most severe nuclear plant disaster after the Chernobyl incident 25 years ago on April 26, 1986. But what was really surprising was that, despite knowing the extent of havoc that nuclear radiations can cause, Japan deliberately manipulated the information about radiation levels since the beginning of the incident. While the Nuclear and Industrial Safety Agency (NISA) is the regulator of Japan’s nuclear industry, the Fukushima Daiichi Nuclear Power Station was operated by The Tokyo Electric Power Company (TEPCO). Immediately after the disaster on April 12, 2011, NISA’s radiation estimate was 370,000 terabecquerels. Global agencies accepted NISA’s estimate as being true and honest. How wrong they were? Firstly, all climactic data on radiation levels was going against NISA’s fraudulent estimations – regions as far as Canada and United States were detecting radiation due to the Japan disaster. Secondly, while Japan had evacuated people in an area of 20 km around the plant, all radiation surveys showed high radiation exposure to people even 60 km away from the plant. On June 15, Japanese government shamelessly accepted this fact and issued new evacuation advisories for people living in the 60 km radius. More pathetically, NISA, in a report to International Atomic Energy Agency (IAEA), accepted that their initial estimates were completely off the mark and increased the radiation leakage estimate to 770,000 terabecquerels. In the report, Japan admits that “it was unprepared for a severe nuclear accident.”

As per the World Nuclear Association, 100 millisieverts nuclear radiation a year is the limit that one can be exposed to, and exposure above this limit leads to a serious risk of cancer. As per present reports, radiation levels went as high as 400 millisieverts per hour, which could have been as lethal as a nuclear bomb! More surprisingly, Japan rated this terrible nuclear crisis at five out of seven on the International Nuclear and Radiological Event Scale (INES) initially. France’s nuclear safety authority ASN warned that the minimum should have been rating the disaster at level-six. Later, under extreme pressure, Japan raised the score to 7, indicating a ‘major nuclear incident.’

Clearly, the radiation impact on the environment and on humanity will remain much longer and worsen too. There are over 100,000 tons of highly radioactive water inside the buildings. Its decontamination is very lengthy, expensive and exhausting work. Radioactive particles are spreading through the air, which will also impact other nations. Three months since the incident, the nuclear plant is still leaking radioactive material.

Yet, if you go by the Japanese government’s claims, no direct death has occurred due to nuclear radiation; over 10,000 people have died in the earthquake so far and it cost around $250 billion to the Japanese economy. Over 180,000 people were evacuated from within a 20-30 km. radius of the accident. So far, only 160 people, as per the Japanese government, have been found exposed to radiation.

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Source : IIPM Editorial, 2012.

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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Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
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A Reality Check Is In Order

The World Bank has been known for The Quality of Information it Provides. But The Status Quo is fast Getting Depleted

Since its origins, the World Bank redefined the concept of money lending, and even that of survival. As similar international institutions emerged, the World Bank survived to remain among the most important institutions because it distinctively established itself as not only a global central bank, but it also defined its role as the centre for “production, accumulation, circulation and functioning” of knowledge.

But the institution is fast losing its credibility. Its reports, findings and analyses are no longer attractive, reliable and comprehensive. A recent report titled ‘Social Protection for a Changing India’ released by World Bank is a case in point. The report was launched in New Delhi on May 18, 2011 in front of over 30 journalists and had nothing credible to present. Firstly, when its chief economist John D. Blomquist was asked about the source of inspiration for the project, his reply was the Planning Commission asked them to do it. The contributors had no idea when the report was first outlined! Surprisingly, data used in the report was old, outdated and badly presented. In volume 1, pages 13-20 have been trussed up non-sequentially. Empty spaces exist where graphs perhaps should have been. Data of “share of PDS grain in consumption quantile” is as old as 2004/05. Similarly, data on PDS grain leakage is as old as 2000.

The only reason countries still entertain World Bank’s reports is ostensibly because it is still a huge lender. For example, it approved two big loans to India – $975 million for Eastern dedicated Freight Corridor project and a whopping $1 billion to clean the Ganga.

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Source : IIPM Editorial, 2012.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
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IIPM: Indian Institute of Planning and Management

No Dictator is above Trade!

When it comes to Dealing with Dictators, American Foreign Policy is Remarkably selective, Depending on Strategic Interests

Here it goes. What is one thing common between Paul Biya, Berdymukhamedov, Obiang Nguema, Idriss Deby, Karimov, Zenawi and King Abdullah? Well, you got us right they are all world renowned dictators. But then, one thing that is even more common is the fact that in spite of being dictators, they are all US allies.

Interestingly, these dictators also feature in Amnesty International reports either as criminals or as human rights abusers. Berdymukhamedov of Turkmenistan is known for his authoritarian rule. Similarly, Obiang Nguema of Equatorial Guinea, Biya of Cameroon and Islam Karimov of Uzbekistan are involved in numerous executions. Deby of Chad and Meles Zenawi of Ethiopia are also behind ongoing slaughters, rapes and abductions going on in the country and King Abdullah of Saudi Arabia denies freedom of expression and legitimacy and practices unfair trials. With almost all these dictators, US has oil trade to the tune of billions. It imports oil from Turkmenistan (1,000 barrels/day in 2009) and sells Boeing jets to the Turkmen government. Similarly, it imports petroleum products from Equatorial Guinea (58,000 barrels/day in 2010) and Chad, while it imports uranium from Uzbekistan (51,000 barrels/day in 2010). Ethiopia is the largest aid recipient from US & US imports around 160 million barrels annually from Saudi Arabia.

To say the least, US, the world’s greatest superpower and self proclaimed upholder of human values seems to judge a nation only by strategic worth.

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Source : IIPM Editorial, 2012.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
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IIPM: Indian Institute of Planning and Management

The Communications Industry, in toto, by Becoming a Telecom Operator

Google is Huge. Its m-cap of $201 Billion Proves it. And it can Easily Grow Bigger by Conquering The Communications Industry, in toto, by Becoming a Telecom Operator. Question is – should it take The Chance?

There are however some challenges. First, infrastructure, which it lacks. Explaining one disadvantage, New York-based Jordan Monahan, Analyst, Goldman Sachs, tells B&E, “Google could use Android to encourage the concept of a single portable contact which could shift from cellphone to fixed-line phone to PC, depending on one’s accessibility. But Google does not own last-mile connections, so the telecos could drive up the cost of last-mile access to render a Google calling-plan unattractive.” Even 4G spectrum is not something with which Google is operationally familiar. If Google is to match investments in infrastructure made by US’ #1 carrier Verizon (with 93.2 mn subscribers), which has spent more than $98.1 billion on it over the past decade (including $10 billion for 4G spectrum), Google will have to invest 41.5% of its revenues each year, on stitching together just the skeleton for providing mobile services. Expensive, but not out of reach, considering that at present the company has $30 billion in cash balance. Also, if required, it can easily raise billions by dilution of shares, considering that at current level of m-cap, the company has to dilute only 1% to raise $2.01 billion!

But there is the dark side as well. Currently, Google’s Android OS is a craze amongst mobile manufacturers. Being an open source software stack, it does not have the liberty to anger the likes of Verizon and AT&T. In short there could be an attack on Google’s popularity if it decides to rise in the telecom services market. The Federal Communications Commission still does not have “appropriate” net-neutrality rules in place for telecom operators, that can prevent them from blocking Google from their subscribers. Quite possible therefore, that a repeat of Verizon making Bing the default search platform on its new Android launches (instead of Google) and of Apple blocking Google Voice from iPhone users for 18 long months (post launch), can occur, if Google tries to become an all-integrated player. So what’s the way out for Google, for whom a new dream could well threaten much of the very present?

With millions across the world already familiar with Google, what the company could do to live its mobile carrier dream, is to take the middle path – become a mobile virtual network operator (MVNO; similar to Virgin Mobile which was acquired by Sprint). While speaking to B&E from Massachusetts, Charles King, President of Mindspring & Pund-IT Services adds, “At this point, with the market changing so quickly – via the rapid growth of smart phones and emerging tablets – I think Google is best served by remaining as it is and not becoming a Mobile Network Operator (MNO). It is a trusted OS/services partner, which is an enviable position to have in such a market. It could however try its hands at the MNVO model.”

Google should not apply for a mobile licence, not bid for spectrum or bother about infrastructure. All it has to ensure is to work on a retail format to connect directly with end users, strike roaming deals with current operators, distribute voice minutes and data traffic and tie-up with third-party app-providers. Given that Google has been a master at handling marketing and dealing with end-users in the past, it could live its mobile carrier dream as a “virtual” operator. Not that Google cannot anger competition and become the largest US telecom operator. Cash it has and time too. But it has to realise that the power of possessing nuclear weapons is in “not” detonating them. For now, Google should let the Android magic work wonders and according to plan.

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Source : IIPM Editorial, 2012.

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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Rajita Chaudhuri-The New Age Woman
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Trick an angel of death into sparing your soul... by shopping online!

You hear it [almost] everywhere these days – discount sites offering great deals. Many think the idea hasn’t come of age. One yamdoot disagrees. So does Snapdeal.

Not many Indians know him as ‘Grim Reaper’. For people of this country, he goes by the name of Yamdoot, the famous messenger of death. Actually, if you want to add a touch of funk to his identity, call him ‘Yamdude’, as he is christened in the latest Snapdeal campaign.

Group-buying and discount websites are a rather modern day occurrence in India. But every passing day, more and more are buying into the idea. Most are either teenagers or those with a youthful spirit. Understanding this, Snapdeal has come up with a concept that appeals to youngsters, is light-hearted and snappy to say the least. The campaign has Yamdude sporting shades, branded shoes, watches, jewelllery et al. He is even shown enjoying a good facial treat at a beauty salon! This series of four TVCs has non-serious 20-25 second-long scripts, and that is perhaps where the ads score the most points.

The series of ads (where Yamdude is shown enjoying discount offers from Snapdeal.com), was conceptualised by DraftFCB Ulka. Some are of the opinion that the content lacks originality, because it is a direct lift from a foreign ad. [Remember the Green King IPA beer TVC, where the young lad survives some ‘fatal’ accidents because the angel of death is busy sipping beer at a bar?] Agreed. But given that the idea is now being put forward to Indian consumers, one’s got to trust that these TVCs can influence brand recall – and in favour of Snapdeal.

Explaining the thought process behind the campaign, Shiveshwar Raj Singh, COO, DraftFCB Ulka tells 4Ps B&M, “At Snapdeal, the kind of deals you get are so wonderful that even immortals would be hard pressed to turn them down. With this simple premise, we came up with the idea of the God himself getting enamored by the range of earthly experiences that you can get access to with Snapdeal. Once you have an iconic image like ‘Yamdude’ in your campaign, then all product offerings get wrapped around it”. Without using a celebrity, the wisemen behind the campaign have managed what others using the most publicly-recognised faces often can’t – paint the real meaning of the brand’s punchline. Through this campaign, Yamdude does prove why ‘You only live once’.

The campaign has been launched across all media vehicles, including TV, radio, Out of home and online. While nearly 35% of the ad spend has been reserved for airing TVCs, the rest is equally distributed amongst the remaining media forms.

The first TVC was launched on December 15, 2011. It showed a skydiver struggling with his parachute. Along came Yamdude, who spares the skydiver’s life in exchange for his Snapdeal vouchers! Other TVCs showed a marathon runner whose life is spared, an old man who gets to live another year (because Yamdude gets busy with his Snapdeal consignments), and a Snapdeal delivery guy who comes face to face with Yamdude (Yamdude takes the delivery at room #773H – invert the room number vertically and it reads HELL!). The work of the lead cast Vijay Maurya – who plays the role of the powerful yet likable Yamdude – in putting across the message is worth a word of appreciation.

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Source : IIPM Editorial, 2012

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

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“Our sales have jumped due to our marketing efforts”

With competition thickening in realty, efficient delivery of projects and getting the brand’s core proposition right will be the key to success.

In the online space, Godrej Properties is probably a pioneer in activating the YouTube channel and the Flickr gallery. The company showcases videos and pictures of its properties so that customers can get a feel of the product. Girish Shah, Vice President - Sales and Marketing, Godrej Properties Ltd (GPL), talks to 4Ps B&M’s Mona Mehta about how the company is successfully managing to retain its GPL brand trust and how through innovative marketing campaigns and strong focus on customer engagement initiatives, GPL has been branding and marketing itself. Edited excerpts:

What aspects have gone into shaping and evolving your branding strategy?
Branding and marketing has become a key driver in real estate today. In fact marketing investments in real estate has seen unprecedented growth across media over the past few years. We have been aware of this trend and our brand strategy has been conceptualized out of our deep focus and understanding of our consumers across regions. Our key drivers in creating a strong brand have been to develop a new visual language which resonates with the new India, a strong focus on consumer engagement initiatives, intensive and innovative marketing campaigns for greater visibility and recall, establishment of an award winning CRM programme to service our customers in the long run and activation of the global sales footprint. Our motto is to create long-term relationships with our customers

What message have you been able to communicate across your consumers through your branding efforts?
We have implemented a our new brand language for GPL across media and mediums, which makes the brand look and feel distinct, approachable, with a strong association of trust and transparency of the mother brand and yet be modern and contemporary. We believe real estate is a very micro-market driven business. Hence our approach always has been of implementing different strokes for different folks. We use the relevant medium to cater to the right audience. For e.g. we participated in a Gujarati play to cater to Gujarati audience for our property in Ahmedabad. Similarly, we have engaged with the HNI audience through golf, polo, theatre and music to present our high end properties. Over time we have realized that our sales have taken a quantum jump due to the increased awareness and visibility of our marketing efforts.

How do you make your branding stand out in the crowd?
We see to it that every campaign has one innovation which will give the activity enough buzz and awareness. The oxygen bar along with the sapling drive campaign at Godrej Prakriti, Kolkata, won us the award for the ‘Best Marketing Campaign of the Year’ at the CMO Asia Awards. Similarly our campaign – featuring the TOI online road block innovation – has led to Godrej Garden City being adjudged the ‘Most Admired Brand’ in the real estate sector, according to the Asian Leadership awards. We were probably the first ones to activate the YouTube channel and the Flickr gallery to showcase videos and pictures so that our customers get a feel of the property even before he visits us.

What are the inherent brand attributes for a successful real estate company?
Real estate is a very emotional purchase although it has a very rational undertone to it. With the influx of known business houses into real estate, getting the core proposition of the brand right along with its delivery on ground will make or break a real estate company in the future.

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Source : IIPM Editorial, 2012

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
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“Branding helps sell the USP of your projects”

As the real estate industry becomes more mature, it is fast adopting corporatisation and branding practices to meet consumer expectations.

Oberoi Realty’s Reema Kundnani, Vice President, Marketing & Communication, speaks to 4Ps B&M’s Mona Mehta on how branding can help build trust and confidence among real estate buyers and sellers. Edited excerpts:

How is branding helping to change the image of the real estate industry?
The real estate industry is maturing and we are seeing a lot of corporatisation happening. The industry has now become serious about branding, positioning, promotions and building a reputation for itself like any other sector. In our case, Oberoi Realty has been positioned as a premium, high quality luxury brand in terms of project design and execution. That’s our USP and branding helps us maintain our track record in the industry.

What’s your approach to branding and what message it seeks to convey?
We believe in responsible branding and our adspend is geared towards consciously promoting our brand through responsible branding. Through our ads we tell customers what we stand for. The tagline of our ads say, “Our apartments are ready, are you?”Following the launch of Oberoi Splendour at JVLR at Andheri in Mumbai, we have moved 400 families into 3 BHK apartments that cost Rs.2.2 crore each.

Has branding helped in pushing sales and creating the right awareness?
Branding helps build the right perception in the minds of customers. The branding of Oberoi Realty, through which we target the upper premium income audience, is creating a similar perception in our TG. Right branding helps to create perceptions about ownership of a product with all its attendant benefits. By communicating about our brand, we have been able to create a vision of our product that’s high on technology and design experience.

What particular branding strategies have you gone for and how are they different from the others?
Oberoi Realty has adopted two to three innovative branding strategies. Firstly, Oberoi Realty has tried to create a brand pull. We have been able to communicate that ours is a brand with premium and luxury positioning quality and design. Secondly, we have focused on enriching the customer experience by letting customers feel and experience the product before they buy. Oberoi Realty has always tried to be different in its communication. We put up our ads without putting the location of the building, with the tagline, “location available on request.”

Does branding help real estate players to connect closely with consumers?
Branding is important for the real estate industry because there are thoughts, emotions and decisions involved in the purchase of your dream home. When it comes to expenses, buying a house is one of the costliest expenses for a buyer and there is a lot of emotional attachment involved. Oberoi Realty focuses on building high trust and transparency in all our projects. We do not discount prices because the involvement of buyers with the brand is that much higher.

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Source : IIPM Editorial, 2012

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
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Advertising - Hotspots and Rankings - International Curry

Some international campaigns succeed in creating momentously historic landmarks in the global advertising playfield. 4Ps B&M brings to you a review of one such stellar campaign that was active during the fortnight ending November 30, 2011

Served fresh!

Advertiser: Lay’s
Ad Title: Lay’s: Machine
Category: Ambient

4Ps TAKE: There are thousands of products out there across categories vying for your attention through multiple mediums. The flow of information is so overwhelming that after a certain point of time, your brain stops registering information. In fact, the human brain in the present time has developed a unique defense mechanism under the contours of which it only accepts what appeals to it the most. But some brands stand out with their approach and these are the ones which successfully manage to position themselves as category leaders resulting in increased market share. Lay’s happens to be one such brand. Years of careful and well crafted advertising has made it one of the most consumed potato chips in the world. The consistent challenge is to reinforce and consolidate its position. To achieve the same, Lay’s in association with +Castro (advertising agency) created a unique ambient campaign recently. The idea was to showcase transparency in terms of natural ingredients used. So while a lot of brands keep their ingredients secret (after all, what will you make out of monosodium glutamate, disodium guanylate and disodium inosinate?), Lay’s decided to communicate how 100% natural potatoes coupled with vegetable oil and a pinch of salt make their potato chips the best.

Conventionally, a classic sampling exercise would have sufficed. But Lay’s put up special vending machines in malls across US, which, instead of accepting coins, required just a natural potato to deliver the end product. Customers had pick a potato up, drop it into the machine to see the action starting. The shutter on the front panel of the machine would open to reveal the potato being processed (from peeling to chopping and then finally frying) and potato chips get finally delivered in a freshly sealed packet. The effect – people waited in queues for their turn just to see how 100% natural potato chips were being prepared. Just keep a close watch. Looking at the response, a vending machine might soon be coming up at a mall near you.

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Source : IIPM Editorial, 2011.

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

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GREEN PRODUCTS GO ON HOLD IN HARD ECONOMIC TIMES

The patrons of green products are facing the burnt of economic conditions. While some are still thinking, most have gone back to cheaper non-greens

In August, Lloyd Alter came up against the limits of his environmental convictions when he had to replace the leaky roof on his house in Toronto.

“For years, I said I would install a reflective metal roof,” because it helps to reduce heat and lower energy costs during the summer, said Alter, an architect who writes about design for Treehugger, a sustainability-focused website. But “when push came to shove,” he said, “I bought asphalt (one which costs almost half of the metal roof and made from a a petroleum-based material).”

It is the kind of reality check that many eco-conscious consumers face these days. And like Alter, most have resorted to cutting their spending on a variety of items, particularly green products, which typically cost more than their non-green counterparts and can be difficult to justify, or even afford, when budgets are tight. In a bad economy, what used to seem essential can quickly become optional. At the same time, what was once merely fashionable can become a matter of necessity. Activities like growing and canning food, raising chickens and making your own clothes and other household goods are now seen by many as a way to economize while staying true to green values.

David Quilty, a blogger in Santa Fe, New Mexico, has stopped buying organic cotton T-shirts and shopping for produce at Whole Foods. And after years of buying packaged cleaners and soaps from eco-friendly companies like Method and Seventh Generation, he can no longer afford them, he said, so he has started cleaning his home with a solution he whips up himself.

Not coincidentally, his widely read environmental blog, The Good Human, recently ran an article entitled “23 Ways to Use Vinegar for Nontoxic Cleaning.” One of a number of similar features that have appeared on the site in the past year, it is a sign of the blog’s shift toward a do-it-yourself mentality.

The same shift in focus is evident on other environmental blogs. Alter said he sees it playing out daily on Treehugger. “Had you come on the site four years ago, before the recession, you would have seen a post every day for a new bamboo shirt or bamboo sandals,” he said. “We do almost none of that stuff anymore, because people don’t have the money to buy it.”

Not surprisingly, the green products industry is feeling the pinch. Laura Batcha, Executive Vice President, Organic Trade Association, said that while the organic-goods sector has boomed in the past eight years, going up to $29 billion from $9 billion in sales, the industry’s yearly growth rates dropped to less than 6% in 2010, from between 15 and 20% previously.

And some brands have felt the pain more than others. According to SymphonyIRI Group, a market research firm that tracks mass-market stores (excluding Wal-Mart), sales of Clorox Green Works tub cleaner and dish detergent each dropped by more than 30% in the 12-month period ending in early September. And another popular green brand Seventh Generation has seen a drop in sales of items like paper towels, which are down by more than 15% during the same period. Meanwhile, pricier items like hybrid cars have seen sales decline by more than 20% in the past year, according to Baum & Associates, another market-research firm.

Despite all that, Batcha insists that the green industry is continuing its “uphill climb” (the industry’s growth rates are back in the low double-digits this year, she said, although she was unable to provide specific numbers), and most people aren’t making a choice between green and cheap. At the moment, however, many eco-minded consumers seem to be wary of both.

Not long ago, Alter found himself in a grocery store, trying to decide between $10-half-kilogram organic bacon and a nonorganic brand that cost $5. In the end, he didn’t buy either one.

For Erin Peters, a stay-at-home mother of three who began using green products four years ago, the do-it-yourself approach was a response to what she thought was a temporary financial hardship. But despite forgoing things like green cleaning products and organic food, Peters said, she thinks she is living in a more sustainable way than she did before.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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

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“DESIGN BUSINESSES TO DELIVER RESULTS”

Operational ceos design businesses with the same rigour and discipline that they expect their teams to bring to designing new products, identifying clear requirements for operational performance and evaluating alternative operating model designs.

The challenges facing CEOs have never been greater: increasingly demanding customers, rapidly changing technology, accelerating industry dynamics, global competition. This tough business environment has seen the emergence of a new generation of ‘operational CEOs’. These are results-driven, operationally-savvy executives who realise that strategy on its own isn’t enough; delivering results requires a mastery of operational strategy. They take their inspiration from companies like Southwest Airlines, Toyota and Zara, who have leveraged operational strategy to create innovations that have profoundly altered the dynamics of their industries.

Managing outcomes
Being operational doesn’t mean that CEOs need to manage operations directly. Instead, they focus on managing the outcomes. They understand that businesses and their operations need to be explicitly designed, not just left to evolve organically, and that they have a critical role in defining the performance that each part of their business must deliver. They design businesses with the same rigour and discipline that they expect their teams to bring to designing new products, identifying clear requirements for operational performance and evaluating alternative operating model designs. They realise that sometimes incremental improvements aren’t enough; significant changes to their company’s operating model may be required to deliver the results they need.

Operational CEOs understand that all components of what a business does, from customer acquisition to customer service and support, need to be viewed in an operational context. They know the strengths and limitations of their current operating model and how it is different from their competitors. They have a firm grasp of the key operational metrics for every part of their business and understand the interdependencies between them and the performance trade-offs involved.

Designing & implementing new operating models
Start-ups have the chance to create their operating models from scratch – which is why they can be so dangerous. Operational CEOs understand how the limitations of their current operating model can constrain the strategic options available to their business. They also recognise the potential of operational innovation to change the basis of competition. They know the key design decisions businesses in their industry need to make and the time and cost involved in making changes to the different components of their operating model. Faced with significant uncertainty, operational CEOs put a premium on flexibility, and they design operating models that can respond rapidly to new opportunities and changing market conditions.

Zara: fast fashion delivers results
Zara, the Spanish fashion retailer, demonstrates how operational innovation and a radically different operating model can redefine the basis of competition and deliver superior business results. The company’s strategic vision is to deliver value-based fashion – fast. Zara can get new clothing designs from the drawing board onto store shelves in as little as two weeks, while it takes most retailers four to twelve months. The key to the company’s success is a high-speed operating model that integrates every aspect of the business, from product development to retail.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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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Management Guru Arindam Chaudhuri
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A BIG IDEA CALLED…DURGA PUJA!!

Religious festival, colourful carnival … or a big, fat platform showcasing Ma Durga’s boogey-woogey with Ma Lakshmi?! 4Ps B&M’s Consulting Editor Monojit Lahiri probes a space where the spirit of commerce keeps shrewd company with the celebratory sounds of conch shells

The Big Idea has always meant different things to different people. In theory, it has been described as a “surprising solution to a marketing problem expressed in a memorable, verbal or graphic way.” It picks up power, force and momentum due to the chutzpah of its startling perspective that can alter a habit, opinion or a point of view. The big idea can originate from a variety of sources... arts, sports, politics, entertainment, popular culture, today’s headlines... but the central point is its ability to communicate a clear and compelling message that enlightens and entertains even as it empowers!

What better example than the Durga Puja?!
Few events have served as a more colourful and powerful commentary on contemporary life and times reflecting popular culture in the public space, than the Pujas. At one level it represents the close bonding of the neighbourhood. At another, a wonderful expression reflecting aspirations through the prism of creative pandal decoration. In keeping with the consumerist times, however, has the Puja today become increasingly corporatised? In this setting, have brand marketers shrewdly started capitalising on religious sentiments to ensnare the Puja shopper?

Ujjal Sinha – head honcho of the Kolkata-based ad agency Genesis – is spot-on with his take. “There has never been a bigger idea for mass-connect than the Pujas! It’s the one time in the year when all Bengalis come together in a spirit of joyous bonhomie celebration. The result is a gigantic captive audience, in a happy, feel-good frame of mind... carefree, loaded, adventurous, eager and willing to hit the impulse-purchase button!” says Sinha. He points to this matchless challenge-and-opportunity backdrop for all sharp brand custodians to unleash their big idea tapping into the mood and temper of this event, and turn on the receptive, bindaas audience base. Adds the smart adman, “the difference between this captive audience and others at railway stations, airports, sports stadia or concerts is essentially the state of mind. During those Puja days, they are in a different zone.” By “different”, Sinha is referring to the fact that people have their guards down.

Executive Director of another Kolkata-based ad agency, Response, Sid Ray, adds his own spin to the table. “In the east, the trigger months kick off from July-Aug because of the oncoming festival season. The durables and FMCG companies pull out the stops to identify every possible avenue to push sales. With Pujas being a hi-throng and hi-spend space, all the tricks in the book are deployed to gain the winning edge over competition,” says Ray. From the consumer’s perspective too, this is a freak out time. “Right from the Mahalaya – 10 days before the Pujas – till the immersion, the Puja scene is a thrilling blend of carnival, fashion show and food fest! The most significant factor of today’s youngistan-driven Puja is that everybody wants to make a statement! So clothes and fashion leap centre-stage. Add to this a 24x7 participation of media channels covering events like fashion shows, pandal decorations, entertainment, starry guests, awards for the best dressed couple etc. and you realise what a huge idea the Puja is!” adds Ray.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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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Cheil Worldwide Double impact!

Cheil Worldwide’s Aneesh Jaisinghani and Sambit Mishra are the Formidable Duo holding the Creative Honours at South Korea’s biggest Marcom Agency!

Two heads are always better than one! This philosophy brought them together. They surely have not greyed their hair in the advertising industry since its beginning in India as they both are still running in their pseudo teenage years! But that does not steal away their experience and credibility! Aneesh Jaisinghani, Assistant Vice President, and Creative Director along with Sambit Mishra, Creative Director, Cheil Worldwide’s India operations, South Korea’s biggest marketing communications agency and a fast emerging one in India, with memorable campaigns for clients like Samsung have carved out an undeniable niche for themselves. The stars of this cover story share their voyage of togetherness not missing the pot-shots!

Was your teaming up a gradual process or was it an instant connect?
AJ: I had met Sambit for the first time when he had come for an interview at Lowe in 2004. I was introduced to him by my then copy partner O. R. Radhakrishnan and my college class mate Abhishek Dey. At that time, Prateek Bhardwaj, the Creative Director of Lowe had hired two teams, one comprising Radha Krishnan (now with McCann Ericsson Mumbai) and me and the other comprising Sambit and Abhishek Dey aka ‘Golu’. In sometime, Prateek moved to Everest Brand Solutions and the plan was that all four of us will move to Everest with him. But since Everest couldn’t have hired all four of us together, it was decided that two out of the four of us, one Art Director and one writer, would move first and in a month or so, the other two would follow. Prateek left the decision to the four of us to decide who would be the first two to move to Everest. And since I was having a hell of a time traveling all the way to Gurgaon to reach office everyday and Sambit was having a hard time adjusting to the Lowe way of working, it was decided that the two of us deserved to move to Everest first! I noticed that he was an extremely quiet person and let his work speak. But more or less it was an instant connection which got better with time.

SM: I first met Aneesh at a pub called 100 degrees with his then copy partner, O R Radhakrishnan. At that time, I found him to be serious and a matter of fact types. But in a couple of hours, by the time drinks had taken their effect, he turned out to be one really funny guy. It was a just a casual meeting but we connected there and then. The pub is now shut down and there’s a bath fittings showroom there.

How was the experience of working on your first assignment together as a team?
SM: My first job with Aneesh was on BILT ProAM golf tournament. I don’t remember what the client had to say about it but I remember our boss Prateek Bhardwaj going gaga over it. I still have that campaign details in my folio. Apart from his being a gem of a guy, professionally it helps an average copy guy to have a darn good art partner to hide the copy flaws [guffaws].

AJ: The first work that we did together was actually when we weren’t a full time team. It was a campaign for a ProAm Golf Tournament sponsored by BILT. It was a nice campaign which never got released but even I have that in my portfolio till date. It was really well appreciated by our colleagues. People still like it when they go through our folio!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
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IIPM's Management Consulting Arm-Planman Consulting
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