“Move over Mr. Big, this is my playing field!”

IIPM set to beat economic slowdown

From leaner, smaller and more flattened organisations to everything value-for-money and no-frills, the slowdown sentiment has marketers salivating over the rediscovered power of ‘small’ over Indian consumers. Small portions, small housing, small cars, small handsets, chhota recharge, budget travel, et al, are the new big boosters...

What goes around, comes around. Capitalism trounced the saving habit and steered consumers toward conspicuous consumption. But the fall from grace of capitalism’s most iconic symbols (read: Lehman, Merrill Lynch and others of their ilk) is making many cringe at their recent splurging - especially those in the US. Albeit lesser affected, but consumers in India have balked at the fate of their US counterparts. After all, India Shining, outsourcing, 9% growth rate and YouTube had most of India’s 300 million strong middle class happily married to the American dream, replete with plastic money and cheap mortgages. The crash is seeing many of them run for cover. Forced to acknowledge economic fear after almost a decade – Indian consumers are once again tightening their purse strings. And the effect is visible across myriad sectors and consumer segmentations. Read on...

Despite the economic gloom that seems to have cast a feverish shadow over conspicuous consumption globally, Ronald’s India journey is turning out to be a scrumptious ride by comparison. McDonald’s colorful clown character cum mascot simply can’t quit grinning in his various poses at the QSR chain’s 150 golden arches across the country. The optimism is part reflected in the growing number of burger-happy faces that continue to mill around McD outlets in India. Tough times notwithstanding, footfalls are on a rapid incline. Reason? Economic uncertainty is making consumers frugal, shifting their eating out options from fine dining to casual dining (like Pizza Hut) and from casual dining to QSR chains like McDonald’s. Small servings, meagre price tags (burgers at Rs. 20 anyone?) no-frills eating is clearly the way forward (at least for the near – if uncertain – future!). Ask the management at this burger and fries company about the slowdown effect and they feign total ignorance. “Slowdown? What slowdown?” Profitability, they say, has jumped 100% in 2008, with a 25-28% y-o-y. sales growth. System-wide footfalls have also increased simultaneously by 14-18%, and if the gloom persists, the management is expecting both sales and footfalls to increase even more dramatically in the first quarter of 2009.

So when most companies are in downsizing mode, this one’s on a hiring spree, with a plan to hire more than 2,000 new associates over the next two years. But McDonald’s hiring plans are simply an aberration in India Inc., with almost every business house – across financial services to infrastructure and realty – singing ‘small is beautiful’ (read: lay-offs and recruitment freezes). The fight for survival has companies retaliating via cost cutting measures and nimbler, meaner operations, believing that it will give them the ability to cut their losses in these tough times and come back stronger when the economy bounces back.

But that’s just the tip of the iceberg. The real power of ‘small’ is reflected in the recent going-ons in corporate India. When Tata announced his Rs.1,00,000 dream car Nano early last year, competitors merely sniggered. Indian consumers have moved up the value chain, they said, adding that the market has matured beyond small cars. By the beginning of 2009, however, a slew of carmakers had either launched or announced small car plans for the same (mature?) market! Similarly, aviation analysts who could not stop predicting the death of low cost airlines in India (no thanks to the bleeding losses that the carriers continue to make), are now busy heralding a new dawn for the no-frills sector. Agreed that the steep fall in ATF prices have also contributed their bit to this resurgence; yet, the optimism is more pronounced thanks to its value-for-money appeal for India’s slowdown-hit air travellers. Even the big man Anil Ambani is dreaming small these day. The initial tariff plans for his GSM launch specifically target subscribers with sub-Rs.300 mobile expenses. If you don’t listen to consumers you perish and today the Indian consumer has fallen in love with “small”..

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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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DRAGON BREATHES FIRE AT THE OLYMPIAD!

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

LEADING HIS TEAM OF 104 MEMBERS, LIU QI WORKED DILIGENTLY FOR SEVEN YEARS TO CREATE A ONE-OF-ITS-KIND SHOW TO BE CHERISHED FOR LONG

The summer of 2008 witnessed the 16 glorious days of the ‘Beijing Olympic Games 2008’ that kept spectators mesmerised at the glitzy venue in China and sports lovers around the globe glued to their TV screens. The unprecedented success of the 29th summer games highlighted the hard work put in by the people who toiled to make the event a memorable one. The real showman manning the magnum opus of the XXIX Olympiad was the President of the Beijing Organising Committee of the Olympic Games (BOCOG), Liu Qi. With him at the helm, the Olympiad reached its pinnacle in the Beijing Games, with record 11,000 athletes from 204 countries taking part. “BOCOG under the able leadership of Liu Qi has offered to the world 16 days of exciting Olympic sports competitions, supported by smooth operations,” avers Jacques Rogge, President, International Olympic Committee (IOC) to 4Ps B&M. Liu Qi had penned down the blue print of the entire preparation of the games into three phases. The first phase saw BOCOG roping in renowned marketing partners and sponsors like Volkswagen, Bank of China, McDonald’s, et al. The second phase (2004-2006) was assigned the completion of the construction of the Olympic projects (including 11 stadiums and gymnasiums) along with signing of contracts with the National Stadium, National Swimming Stadium, et al. Working out detailed plan of security, traffic and logistics were also its part. The third phase was devoted to testing the various events (37 pre-Olympic competitions were held to test the facilities) and fine-tuning of the last minute preparations.

A splendid Olympic Village (a 66-hectare compound), state-of-the-art venues, strict enforcement of anti-terrorist measures, et al, testify to the fact that BOCOG achieved the target it had set for itself. The success of the event can be attributed to the minute detailing, proper planning and apt implementation by BOCOG,” declares Rogge. While Liu Qi was honoured with Gold Olympic Order for his work, others in his team bagged Silver & Olympic rings.

At the face of the grand event lay several challenges facing China (from violent protests in Tibet aimed at disrupting proceedings of the Beijing Games, to related protests overseas against the torch relay). But this did not deter Liu Qi. In fact, a study conducted by Nielsen shows that the Beijing Olympic Games attracted a whopping 4.7 billion spectators. Furthermore, according to an assessment by IOC, Beijing Olympics brought change to China in areas as diverse as media freedom, environment and public health. So, do we already see London (the next Olympic venue) sweating and panting to outdo its predecessor’s success?

Ratan Lal Bhagat

For more articles, Click on IIPM Article.

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.
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM Programme :- SUPERIOR COURSE CONTENTS
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
Why Study Abroad When IIPM Gives You 3 global Advantages!