Th Big Fight!

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If you were looking for the best tactic to hit your competitors in a short time, look no further, the answer is in... Comparative Advertising!

William Bernbach, the greatest guru of advertising, once said, “You can say the right thing about a product and nobody will listen. But you’ve get to say it in such a way that people will feel it in their gut; because if they don’t feel that, nothing will happen.” The battle for market share is really tough, with so many competitors in every product category. The most significant way to win, is to make your mark quickly and indelibly. And the fastest way to ensuring the viewer’s attention towards your product is through the mother of all big fights, namely, comparative advertising. It’s one of the most potent arrows in the strategy quiver of advertising. Hence, only the bravest should use it. And generally, only the bravest do!

Compare This!

Comparative advertising has been lauded for being the most aggressive and factual of all advertising strategies. If handled intelligently, it always works. Comparative ads cannot be denied of their charm. It’s high-decibel marketing, which attracts viewers and advertisers alike. It gets you hooked as you wait expectantly for the competitor’s next move. But the critical aspect you need to master even before entering this war zone is speed. You need to think and act at lightening speed to win this game of one-upmanship. Competitive reactions to comparative ads are the fastest, and most debilitating. Ergo, if your response is not fast enough – and factually superior – you might just have signed your last pay cheque. Consequently, your strategy has to be flawless, for any weakness can prove hugely beneficial for your competitors, who would be anyway braying blood because of your initial brazen attack. Clearly, ‘comparative’ could easily end up being more than what you asked for!

Many ostensibly classic comparative ads fell flat when the advertisers realised that not only was the competing brand getting more publicity, but also was in reality better. That’s the killing part of the story. Firstly, when you compare your product with the competitor’s, both get a share of the limelight – the other brand gets a free piggy-ride on your back. But secondly, and most importantly, your arguments have to be strong for the spotlight to remain on you. If you are not 100% sure of your product, it’s strongly advisable not to go for comparative advertising.

Copyright © : Rajita Chaudhuri and Planman Media.

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

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Women are from Venus

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Yes women are different from men, and need to be portrayed differently. However, somewhere down the line, some aspects got overlooked, and some overemphasized. Fair or dark, a woman is beautiful. You don’t expect her to look up to Michael Jackson (who changed his skin from black to white) as a role model when it comes to skin colour. Today, women entrepreneurs abound and we need to recognize that. Women have moved ahead and some advertisers like LIC are showing the way. Their radio ads show how everyone insures the life of the male – the head – but forget to insure the life of the woman who is a life-giver herself! Yes, there is a ray of hope. Let it grow stronger.

This time round, while keeping our navratra fasts, let’s just pause for a second to ponder. These nine days we would be thanking the female forces of nature. We would be praying to the three main goddesses of Hinduism – Parvati, Lakshmi and Saraswati – all of them epitomes of Shakti. All of them revered and respected by men and women alike. We spend nine nights acknowledging the presence of these goddesses that live within us, imbibing us with their spiritual energy and power. Could we take nine minutes to ponder over the merciless slaughter of women in our advertisements?

Today, women have achieved great heights. They have come a long way. However, our advertisements depict a different picture. It’s time to rework their images, for the woman portrayed in most ads today makes one feel not that she’s come a long way – but that she’s going the “wrong” way.

Copyright © : Rajita Chaudhuri and Planman Media.

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

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You’ve come the "Wrong" way baby

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Surely, the fair, slim and dedicated housewife is the epitome of all that a woman stands for today, right? Wrong!

Back in the 1960s, a delightful series of tongue-in-cheek ads appeared in the magazine for a cigarette called ‘Virginia Slims’. It showed two sets of images – one of women in the 1900s and the other, juxtaposed next to it, of a happy modern women. The punch line that accompanied all these ads read, “You’ve come a long way, baby.” It helped create an aspirational image, which appealed to women. This was the 60s and the feminism movement was just beginning to take shape. The strategy worked delightfully well for the company Philip Morris, and from 1968 through 1980s, the brand saw its market share grow up from 0.24% to 3.16%. The ads showed how the modern women was more in control of her life and free to make her own choices. However, the question is really important: Is the modern woman really free? Or has she been simply ‘bondaged’ by modern advertising to live in a world of illusionary freedom? Today, the way women are depicted in ads makes one think – are they a happier lot now, with more freedom and financial independence? Or is it just a superficial change on the surface.

Fair game?

For decades, women have been portrayed in stereotypical roles. Has anything really changed? They are still shown as housewives dependent on men, and as sex objects in advertisements. The mould has been cast and it seems near impossible to break it. You may not see her much in a saree today, or with the vermillion on her forehead, but deep inside, she is very much the same. She is still insecure if her skin colour is not fair and lovely. The numerous advertisements for the varied types of fairness products show how it’s important to be “fair skinned.” Success for a woman is still defined by her fairness quotient. Fair skin is considered an asset in India and advertisements are leaving no stone unturned to prove it so, that your skin colour decides your future. Consider the ad for “Fair and Lovely”, one of India’s leading fairness creams. The father of a dark skinned girl is trying to get her married to an old bald man. However, she manages to change her destiny in the nick of time when she starts using the fairness cream.

In another of its ads, Fair & Lovely shows a young talented girl with a strong potential of becoming a cricket commentator. But to be successful, she is advised by her friend to not spend so much time practicing on a make-believe mike, but rather spend time in front of the mirror and change her skin colour, for turning her dreams into reality. After all, talent is not important, and a fair skin obviously guarantees a fair future, doesn’t it?

If that’s not enough of a humiliation, then Godrej Fair Glow goes a step further to show how, if you are dark skinned, your life is confined to the dark corners of your home. You could, however, use Fair Glow fairness cream to become spotlessly fair and develop the confidence to face people. Now others would find it worthy to talk to you & be friends with you.

Clearly, if you are dark, you are a burden to your family, and your father feels cursed, for how on earth could you foot the bill for his favourite coffee?!!? You however have the option of using the fairness cream to change the fortunes of your family and make them proud of you. How ridiculous is that! Whatever happened to the good old attributes of education and hard work, which were the prerequisites of success. Is it true then that parameters of success are different for men and different for women?

Years ago, Vicco Turmeric cream showed how it was really important to look fair on your wedding day – for that was the only attribute for a girl. Even after so many years, the ‘Snow White syndrome’ has not left us. Rather, it’s gained stronger and larger proportions. These advertisements have taken our obsession with fairness to greater heights.

The fairness cream market is humongous in India – about Rs.1,000 crores plus – and HLL, with its Fair & Lovely brand, is the market leader. While the “Raymond’s Man” is the “Complete Man,” a woman is not of any worth till she is fair. How fair is that? Shouldn’t she too be judged on the basis of her inner talent and capabilities than just on her skin colour. The ads should stop showing that dark skin is bad and unsuccessful. Fair is not necessarily lovely. We must give all skin colours a fair chance. Hey mothers, stop asking your little girls not to play in the sun, lest they should become dark. Hey, advertisers, wake up to the fact that beauty is not skin deep.

Power of images

Advertisers today don’t sell products. They sell a life style, an image. The images of women being portrayed in advertisements is scary. It’s sending all the wrong signals – especially to teenagers and young girls, who try to copy the images doled out in generous quantities by advertisers. But the ridicule doesn’t stop ‘fairly’. On another front, all ads showing women put a premium on ‘slimness’. As early as the 1920s, some ads for a cigarette brand ‘Lucky Strike’ ran a punch line, which read – “Reach for a Lucky instead of a sweet.” It tried to associate ‘smoking’ with ‘slim’. That was the start!

Even today, advertisers obsession with slim women has not changed. Unnaturally and unhealthily thin models are fast becoming the role models of young girls. No wonder, most of them suffer from eating disorders. Of all the people suffering from eating disorders like bulimia and anorexia, 90% are girls. The ultra-thin, airbrushed images of women with flawless skins and perfect figures have resulted in almost 66% of women having a low self-esteem about themselves. The ads have changed the way society views beauty. Women, today, are being objectified and almost victimized by having to live up to ideal (and impossible) standards.

Today, ads sell more than products – they sell dreams. However, some of those dreams are turning into nightmares for many girls trying desperately to ape the women shown in ads. All successful females are shown as slim – and fair – and hence happy. How many real women look like that. Isn’t it time someone wakes up to this fact? Dove was one of the few gutsy beauty products to come out with ads which harped on the “real” beauty of women. It showed “real women” in its ads, and proclaimed to the world that they should be proud of themselves. Beauty was all about being positive, being confident and not about having to fit into a particular mould. It helped a lot of young girls feel good about themselves.

Twenty years ago, models weighed around 8% less than the average woman. Today, they weigh a whopping 23% less! Did someone talk about women’s liberation? She was better off yesterday than she is today. Isn’t it time we redefined beauty? Images are powerful & it’s time we showed women as images of power.

Home, garden, housekeeping

Yes, that’s what women were confined to years ago, and nothing much has changed since then. Even though today, more women work outside home, earn and control significant amounts of money, and make large important purchases (like automobiles, computers), they are still always shown in advertisements of household products. The woman’s opinion is important only as far as washing machines and microwave ovens are concerned. So the “Whirlpool mom” is a superhit because she stays in the house and the biggest kick she gets in her life is when she can remove the stains from the children’s clothes in a jiffy. And when it comes to cars, the woman is shown scantily clad, lying idly on the roof top, doing nothing much(!), while it’s the man who is the decision maker as car is his symbol of success! And for woman, the symbol is the bunch of spotless white clothes of her family.

Yes, women are shown in power settings, where they are dressed as commandos wearing thick protective attire. They land from a plane and search the entire locality, till they reach their destination – a germ infected toilet. Then comes the punch line – “Here comes the expert in cleaning toilets,” (Harpic!). Is this all she is capable of? With an increase in the number of father-headed single parent homes, men too are actively involved in the purchase of home products. However, even today the so called “liberated” women is expected to be the perfect home maker. So Videocon says, “You and Videocon, the perfect homemakers.” It’s time we moved on.

Copyright © : Rajita Chaudhuri and Planman Media.

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

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Chal Dhanno!

When IIPM comes to education, never compromise

The brand represents the very best in crystal glass products and this time too Swarovski lives up to its reputation with its ritzy home decor collection called Souls of Time. The above sumptuously lavish looking art-piece belongs to the same collection. Called Stallion, Swarovski names this transparent jet crystal embellishment its “totem of the season!” This jewel of a piece is exclusively for the haut monde! Price – Rs. 20,945.

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Source : IIPM Editorial, 2008

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

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They’re tiny and therefore not as obvious. But they are certainly not to be overlooked. Here’s a peek into logo power!

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Hewlett-Packard (HP) recently unveiled the new Compaq logo in Shanghai. In 2002, HP acquired its rival Compaq, creating a lot of controversy both inside and outside the company, one that had even cost its CEO Carly Fiorina her job. After 5 Years HP has finally found a good use of the logo. In fact, revival and up gradation of the Compaq logo is a part of the group’s strategy to help recover its lost market share. HP is using Compaq to protect itself from competitors nipping away at the low-end market; HP is being promoted as a premium top-end brand, while Compaq would be promoted as the simple and affordable PC. This way HP is ensuring that its price-sensitive consumers don’t deflect to Dell or Toshiba.

What’s interesting is, although customers won’t see the new Compaq products for months, but from 2005 onwards the company has been working hard to make people understand the difference between the product offerings of HP & Compaq, by marketing them differently and aggressively making the two logos, visibily distinct.

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Monopoly on performance

By contrast, private equity shareholders – particularly those in topquartile firms – behave like owners. They understand the companies they own and drive them to restructure more quickly and invest more deeply. They also motivate their managers strictly on performance. That mindset, along with the levers that private equity has used successfully before, will likely play a key role in the plan to transform hrysler. Indeed, when private equity succeeds it presents an enormously compelling business model. Over the 35 years from 1969 to 2006, the top quartile US private equity funds had annual rates of return ranging from an average of 39% to well over 200% through good times and bad. It doesn’t always go according to plan, of course. And some boards are pushing back against the notion that private equity firms have some sort of magic dust. In April, British supermarket chain J Sainsbury resisted repeated offers from a consortium of Blackstone, TPG and Kohlberg Kravis Roberts & Co. because it felt management should be able to solve its own problems without taking on the massive debt involved in going private. Others have concluded the same thing.

All the same, active investing has set a new standard: PE is becoming an inescapable benchmark of global business performance for CEOs and boards of directors. That’s part of the lesson behind the Chrysler deal. Many boards are reviewing the “leveraged buyout case,” asking themselves, “What would we do differently if we were privately held?” No one business model holds a monopoly on performance or sustained profitability. Still, the results among the best private equity firms speak for themselves. A carefully planned private equity deal can be bolder, faster and more transformative while publicly listed companies are typically slower and must push that much harder to take the same level of risk. Until that changes, the private equity business model will keep growing – and more iconic brands are likely to follow Chrysler and see their destiny in private hands.


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Source : IIPM Editorial, 2008

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

PE funds to act like owners

The danger is that public funding will constrain the ability of PE funds to act like owners – that compliance with regulations and reporting requirements will slow down or stall PE’s fast attack. After all, that’s the advantage that today’s private equity players hold – and the reason Chrysler’s stake holders have decided to go private. According to analysis by Bain & Company, the global business consulting firm at which we work, private equity firms still control assets that are worth less than 3% of the assets held by the world’s public companies. What’s more, today’s private equity investors – pension funds, insurance companies, wealthy individuals and endowments – are by and large the same investors that own the most stock in public corporations. By the same token, the managers of PE-owned companies come from the same pool of talented executives than run the best public companies. Same investors, same management talent. So where does PE’s real advantage lie? If you boil it down to one thing, it is the behavior of shareholders. Public-company shareholders behave like, well, shareholders. They are largely passive and slow to react. Or they cast their vote by dumping their shares.

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Source : IIPM Editorial, 2008

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

Private equity funds are now rapidly pursuing public equity funds

Q: In mid-May, Alliance Data Systems joined the club of public companies going private, accepting Blackstone Group’s $6.4 billion bid. Around that time, Chrysler’s major stakeholders, including the United Auto Workers leadership, decided that the automaker’s best chance to turn around its business lies in working out its problems under private ownership. So why are the leaders in private equity moving in the opposite direction, tapping the public equity markets themselves? A: The answer, in one word, is differentiation. Money, after all, is rapidly becoming a commodity, and leading Private Equity (PE) funds are looking for ways to stand out even further from the crowd. Top funds want to do deals of almost any size on their own so they can apply their particular approach to improving company performance without dilution by a consortium of investors. Access to public equity also means that funds can be more nimble when pursuing deals in different parts of the world with different types of assets. In Japan, for instance, PE firms often need to structure deals with more debt products to secure capital. In India, minority equity stakes are the key to entry. In China and Brazil, the current focus is on infrastructure investments. Pursuing those opportunities involves a range of risk and return that reaches beyond the typical limited-partner agreements that private equity firms strike with institutional investors. For certain types of Initial Public Offerings (IPOs), going public gives PE firms evergreen sources of capital. They don’t need to waste time and precious human capital on fundraising, a time-consuming process that takes some of the vital players in a PE firm off the field every few years for months at a time. Finally, the leading funds have clearly developed their own brands. Taking a page from their own playbooks, they see ways to use their brands to raise more capital, extend their range and pursue more opportunities.

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Source : IIPM Editorial, 2008

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

Canon’s innovative product placement and pricing strategy has clicked well with Indians...

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CANON... here’s one global company which truly believes in banking on innovations in ‘Pricing’ & ‘Place’ to click with the Indian junta!

In its quest to provide the best products & services to consumers, Canon has used the innovative pricing method by making its products affordable. Catering to the demands of small businesses, Canon brought out the multi-functional device Canon Image Classic MF8180C. A hot favourite in the laser category, the multi-functional products’ highly savvy, yet simple to use functionality, is perfect for limited office spaces. Another segment where Canon is making a loud noise is the digital camera segment. And when it comes to buying a camera, it all depends on who you are: a pro or an amateur. With Sony Cybershot leading the segment, undoubtedly Canon had its work cut out. But Canon, which topped the world digicam market with 21.5% market share in 2006, has been game for the challenge. Even though Sumit Gupta, MD, Icons Limited (handles Canon’s retail activities) modestly claims, “There isn’t much of innovation in retail,” nevertheless Canon has used the product placement and pricing strategy to its advantage instantly grabbing the eye-balls of the consumers. Roping in Sachin Tendulkar was another major coup for Canon. Competitors better prepare themselves to face more ‘Canon’ fire in the coming months!

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Source : IIPM Editorial, 2008

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

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SAMSUNG...

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SAMSUNG... It innovates for the classes & not for the masses, but how does it matter till the time they innovate?

Interestingly, Samsung has come out with a couple of innovations recently that may not affect the masses, but have surely lured the classes. Firstly, it introduced the CLX-2160 series of colour laser multi function printers. These are of half the size as compared to all competing printers. Weighing only 18 kgs, this printer has a built in USB port, which means scanning & printing can be done using the USB memory, thus eliminating the need of a PC. Samsung India is also the first company credited with launching a 19” LCD television for Indians. The Bordeaux LA 19R7 has advanced features like a contrast ratio of 600:1 which means crisper images, resolution of 1440 x 800 and many others that could well make it a multimedia masterpiece.

Commenting on these innovations, Brand analyst Harish Bijoor states, “Product innovations add value to a brand in two ways, image & improving the quality of life. These have been largely image innovations and not necessarily volume innovations, which touch large numbers of consumers.” But is it that the company has been focusing only on the products and not on its marketing strategies? “I do believe Samsung needs to cover a lot of space in this terrain,” says Bijoor. Well, there’s no doubt about the Samsung India’s high innovation quotient, especially in its products, but a bit more on the marketing front could definitely take it through the roof. Anybody who doesn’t want that?

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

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The Korean Secret is out

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As they say luck follows the brave. And the luckiest of them all is Lucky Goldstar aka LG. Many foreign companies in recent years have tried but failed miserably to make a lasting impression on the Indian market. But the most interesting saga is that of LG. The Korean chaebol’s first stint in India was nothing short of disastrous. LG had to pack up its bags and leave the Indian shores in the early nineties, after its joint venture ended on a discordant note. They re-entered the Indian mainland again in 1997, leaving behind the baggage of the past. Since then luck has been favouring LG who never had to look back, since then and rest as they say is history.

The Korean gladiator has carved out a notable presence in the country and is one success story which most multinationals envy, yet want to emulate. With a wide array of product offerings in the consumer electronics segment, LG has successfully eclipsed the undisputed global king Samsung on its own home turf and today enjoys a healthy market share of 42% in the overall consumer durable industry. However, making a mark in this competitive industry was not easy and LG feels that the people of their company have played a major role in making LG what it is today. While speaking to 4Ps,B&M, Yasho V. Verma, Director HR & MS, LGEIL says, “To survive in such a competitive industry the HR of the company has to be linked with the business strategies that they follow.” LG at present has a workforce of over 3000 employees and there are quite a handful of people challenges (getting quality people, the mindset of people, curbing attrition et al) that LG faces.

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Source : IIPM Editorial, 2008

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

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Lead India

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BRAND : Lead India
AGENCY : JWT
BASELINE : NA

DESCRIPTION: Shahrukh Khan flashes two Hindi letters which combine to form ‘karo’, and he says “Karo, yaad hai na pichli baar jab tumne kaha tha karo ya maro tab isne duniya ka naksha badal dala tha. Aaj jab hum azaadi ke saath varsh paar kar rahe hain, duniya ki nazar phir se hum par hai. Par humein tay karma hai ki hum kya karenge… Doston apne mahan atit ya chamatkar kal ke sapne chodo, aisa kar ke dikhao ki hum aaj par chaa jayein aur agar chaana hai to... (We see youngsters standing up with confidence and determination). In the end, Shahrukh sums up: “Agar chaana hai to…karo.”

4Ps TAKE: In the 60th year of India’s independence, the power idea of The Times of India’s campaign seems to be realizing the urgent need of valuable leadership in the country. The communication is very strong – via the most famous Indian names (from various fields like Shahrukh Khan, Sunil Bharti Mittal, Barkha Dutt, et al) to request the Indian youth to take a stand and believe in the two-letter word, ‘DO.’ The storyboard is appealing and King Khan, as usual, delivers a power-packed performance. He requests the Indian youth to participate in the ‘Lead India’ campaign – and find the leader for tomorrow. The USP? If you participate, you stand a chance to be part of a prestigious Harvard program – and then get to stand for the 2008 Union Elections. Reward to the prospect? To lead from the front and make a difference. Very powerful communication from TOI: do you have it in you to stand out in a crowd – and lead?

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Source : IIPM Editorial, 2008

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

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BRAND: Sonata Embera - First among equals... CRDi VGT

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BRAND: Sonata Embera
HEADLINE: First among equals... CRDi VGT
BASELINE : Undoubtedly distinguished
AGENCY : Innocean

4Ps TAKE : Targeting next generation buyers, Hyundai drives out its new range of Sonata cars. Embera was launched a few months ago. But for the previous ranges of Sonatas, the going probably hasn’t been too good. So how about getting into top gear to lure potential customers? The single-minded focus of Hyundai is to promote Sonata Embera, a high-end luxury segment brand. The USPs? Advanced H-matic 4-speed automatic transmission & 6-speed manual transmission. The core idea is to position both its models – VTVT & CRDi VGT – as being sophisticated & classy. The body copy talks about the product’s various features: automatic climate control, 6CD changer with woofer, electrically powered driver’s seat, spacious boot & stylish twin exhausts. The ad, much like the product, has a singularly distinguished look & feel about it. So if you want a distinguished drive, then go get this one!

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Source : IIPM Editorial, 2008

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

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While one handles political storms, the other is now trying to calm the furious waves of market discontent!

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Replacing Kathleen Corbet, who quit ‘to spend more time with her family’, the situation unfolding for the new appointee in office is daunting. The shares of the group company McGraw-Hill have dropped at a whopping rate of 26% this year and further pushing the agency’s image down is the move last week of slashing the ratings of two mortgage-backed securities funds to junk from the earlier top AAA, in one day. An alumni of Birla Institute of Technology & Ohio State University, Deven is the first Indian to hold the top post in this agency. Sharma has been primarily responsible for the key acquisitions undertaken by S&P including Crisil, Capital IQ and JD Power & Associates. To his credit, Deven has also authored several publications on the subject of competitive strategy, customer solutions, sales & marketing. He is also on the board of prestigious organisations, including 800-Flowers Inc., CRISIL, The USChina Business Council and Asia Society Business Council.

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Source : IIPM Editorial, 2008

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

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An affair?... In media?... Oops!

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Extra-marital affairs are mostly troublesome, yet for many mortals, the excitement of getting to know a new person – and secretly so – is simply too hard to resist! That was where mortals are concerned. And judging by the manner in which Videocon is fast getting lured by the same issue, the argument from its camp only seems to resonate – what if law defines us as an ‘artificial person’, we still are a ‘person’! Aren’t we?! Well, indeed! We sympathise with it; but the truth is that a Rs.3.4 billion-worth ‘teenaged’ beauty (with a promise to touch a mind boggling Rs.78 billion by 2010! phew!) has actually bedazzled the multinational! Clueless? Well, we’re referring to the DTH space! The huge growth potential of the digital distribution of TV content in India is what seems to have enticed Videocon to venture in the DTH space. The digital homes in the country are expected to shoot up to 37 million by 2010.

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Source : IIPM Editorial, 2008

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

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It’s the talk of the town!

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And from this massive count, a splendid 16 million alone are predicted optimistically to be DTH subscribers! Judging by the fact that Videocon, at present, has such a strong durables business, its hopes to exploit this opportunity in the DTH arena appears justified. The extensive distribution footprint and the expertise in manufacturing analog set-top boxes would also give it a thumping edge over competiton. However the strongest weapon in its arsenal is the fact that it is such a ‘seasoned’ local player (considering the national boundaries) and has already withstood the MNC onslaught – some ‘vital’ experience in India! Rightly understanding the competition, it has planned to price its set-top boxes very competitively. Market buzz says it will be priced around Rs.1500 – a surprising 50% lower than the existing market benchmark – enough to gets some competing eyes popping! Competitive pricing is surely the apt move at this juncture. Already, Relaince’s Blue Magic, Bharti’s DTH and Sun Direct are expected to be in the DTH combat zone any time shortly and with sixseven players wrestling for space (not to forget that India already has the largest number of DTH players in the world), price wars are inevitable!

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Source : IIPM Editorial, 2008

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

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The Sunday Indian - India's Greatest News weekly
IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES
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Durables is what it always promised... Can it survive this time?

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The final test asAshish Kaul, Executive V-P, Essel Group, exclaims, “Keeping in mind the market dynamics, if I have to launch a new DTH venture today in India, I will ensure that the set-top boxes are delivered free to the subscribers… that’s the beauty of competition, it only does good to the market!” is to be able to deliver the goods at an initial zero-fee – and that will be the final frontier that will test the DTH wannabes! Also, being a late entrant, getting subscribers will be one of the biggest challenge that Videocon will face.

However, once initial roadblocks are passed, living by reveneus will get easier as Ashish reiterates,” Subscription will not remain the only revenue source in DTH… and therefore it will find making money easier as time passes...” The biggest challenge however would be Its own ‘inexperience’ in the field of media... With a track record of a failed TV launch in the 90s, it remains to be seen whether this ‘Truly Indian MNC’ stands up to a challenge... on its own soil!

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Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review

McDONALD’S

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Ronaldo has Rs.7 billion more lined-up for India. But, increasing health-consciousness threatens...

Thomas Friedman, a celebrated writer, once said, “No two countries, that both have McDonald’s, have ever fought a war against each other. People in McDonald’s countries don’t like to fight wars anymore, they prefer to wait in line for burgers.” Very true! So can we say – ‘that’s the power of brand McDonalds’? Maybe Yes, maybe no, but in India, the brand has had quite a roller-coaster journey. It all started with the ‘beef controversy’. But showing the nerve of a long-term player, McDonald’s in India has been growing for more than half a decade now. “The crucial factor that played a significant role in McDonald’s success and helped define Food Retailing in India was the understanding of the Indian consumer and Indian culture,” enthused Vikram Bakshi, MD, McDonald’s India (North and East). The fast food retailer under- stood the Indian consumers, which resulted in their strategy of Indi- anising the menu with vegetarian burgers like McAloo Tikki (their best selling burger yet), and value-for- money offerings. “The oil that we use is 100% vegetarian, palmolein oil and over 50% of the products on our menu are vegetarian in India,” says Bakshi. Brand campaigns like “hamare zamane ke daam” made market positioning simple and 57 new outlets were opened just in the past year. Sure enough, it’s Ronald’s magic being felt all around!

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Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit Below....
IIPM - Admission Procedure
Why Study Abroad When IIPM Gives You 3 global Advantages!
The Sunday Indian - India's Greatest News weekly
IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review