Monday, June 30, 2008

NOT JUST NUMBER CRUNCHING


When IIPM comes to education, never compromise

To make the world’s most effective media plan does not require number crunching, but some compelling strategies

A blank first page of the newspaper – well, this would definitely make you sit up and wonder what in god’s name happened to the news. “No news” was what the first page of the newspaper, The Afternoon Despatch & Courier, said one fine day to Mumbai. It took readers a few seconds to realise that this was the doing of Nestle – to announce the arrival of their chocolates. They had bought the whole front page of the paper. I am sure any one who saw the paper that day would not have missed the launch. That’s media planning for you in all its glory. More than the creative aspect of the advertisement, it was the placing of the advertisement which created such a tremendous impact (and as usual, such a lot of controversy!).

Where should we put the advertisement – in which newspaper or magazine, how big or small should it be, should it be in colour or black-n-white, and which page? Should it be shown on TV? Should it be of 30 seconds, or 15 seconds, or longer, or shorter? These are some of the numerous questions that need to be answered while developing a media plan.

MONEY MATTERS? NO!

When you are as big as Nestle, you don’t have too many constraints as far as the budget is concerned. You can afford to splurge on advertising and can have unlimited plans and ideas for creating an impact by just buying up the media. However, the fact is, budget is a constraint for most advertisers. It is also a fact that some of the greatest success stories were written on a shoe string budget.

In a small city called Spokane was a small company called Western Insecticide. It was a pest control company with hardly any customers. It had a miniscule advertising budget and could not afford to advertise much. Worse, real estate sales people in Spokane were creating debilitating trouble for the company as to sell property fast, they were spreading the word that Spokane had no termites (and consequently, that no one required the services of any pest control product). Though Western Insecticides realised the critically urgent problem, they didn’t have sufficient funds to counter this “no termites” propaganda.

But a local advertising agency, Corker-Sullivan, came up with an ingeniously imaginative ad, which not only increased the sales of Western Insecticide, but also ensured that people who had nothing to do with termites or buying houses went out of their way to see the advertisement. The ad agency rented a 48 foot wide piece of board on which they painted the logo of Western Insecticide and besides the logo, wrote “There are no termites in Spokane.” A week after the board went up, they cut out a huge piece from the side of the board, making it seem as though a giant termite had taken out a bite. Every few days, additional bites were taken until nothing was left but the logo of the company. Local authorities reported that the daily traffic count at the brand’s site increased from 28,000 to 32,000 and the company reported an increase in business by a whopping 65%. What’s the learning? Clearly, one doesn’t require big money, but only big ideas. In this instance, both the idea and the choice of media were perfect.

When David Ogilvy made the advertisement for Hathaway shirts, the budget was very small, but it did not stop the advertisement from becoming one of the greatest ads. Of course, the copy was brilliant, but the media plan was also good. He decided to put all his money into one media – ‘The New Yorker’ magazine. He knew this was one magazine which would reach his target audience. Since the advertisements would appear very frequently, they would definitely be noticed by his potential customers. It happened as he planned and the shirts and the brand name soon became popular. A part of the success was also due to the intelligent media planning of Ogilvy.

ONCE IS NOT ENOUGH

All successful media plans have followed the golden rule, “The more repetitions, the better retention.” It’s finally a play of these two things – frequency and continuity. If one can achieve these two, success is assured.

People forget. That’s a fact. Your advertisement may be brilliant, but you don’t expect me to remember it forever! Hence, the media plan should ensure that people see the advertisement again and again. People’s memories are short. It has been researched that people forget 60% of what they learn within half a day. If you have to succeed, you need to remind them again and again through various ways. You have to repeat without becoming boring or overbearing. You can use various different kind of media to reach out and touch your audience, to tell them, “Hey look, it’s me... again!” It has to have the right degree of subtlety so that it doesn’t irritate the audience.

As media planners, we must remember, we never really buy media, but we buy a piece of the audience’s attention. This must be done very scrupulously. No customer buys the newspaper or watches TV to see advertisements, but to read the news or watch his or her programme. Your advertisement should not obstruct the customer in doing that.

One such brilliant buy has been done by Britannia for its 50-50 biscuits’ brand. It has bought the best space in a cricket match telecast on TV. Think of Britannia 50-50 and you would immediately associate the brand with the third umpire in cricket. By buying those precious few seconds when the third umpire decides whether the batsman is out or not, Britannia has won a place in everyone’s heart. The brand name & the moment in the game are both associated with the concept of chance. This was an excellent way of involving viewers. What an enduring way to create brand value! CREATIVITY COUNTS

It’s all about creating the right impact. A little bit of creativity in media buying can do wonders. When Polo was launched, they punched holes in a newspaper (The Pioneer). After all, it was the mint with the hole.

An element of surprise also helps, sometimes. Look what happened to the December 13, 1996, issue of Deccan Chronicle. The headline screamed, “Hyderabad becomes India’s fifth metro!” Every reader of the newspaper must have thought, “What’s that...?” only to realise that it was a brilliantly concealed four page advertisement of the launch of Tata Cellular in Hyderabad.

On the same day, the Hyderabad edition of Eenadu sold all its advertising space to Tata Cellular right from the ear panels to the last page. So on that day, every advertisement that the reader saw was of Tata Cellular. Another brilliant display of creative media buying. That day Tata Cellular did not have to worry about beating the clutter – there was no clutter! (at least in the newspaper Eenadu).

The latest trend in media buying is a combination of TV and web. The one advertisement which really proved the effectiveness of this kind of planning was that of Mitsubishi Motors North America Inc. The advertisement was shown during the Super Bowl. With so many advertisements clamouring for the attention of the viewer, they knew that a normal 30 second spot could cut no ice. The Super Bowl ad showed a Mitsubishi Gallant racing a Toyota Camry to the end of a bridge in a braking comparison test. At the bottom of the TV screen flashed a line, which read, “Accident Avoidance Test.” The two sedans were shown racing behind two trailers. Men in the trailers were throwing bowling balls, grills etc. at the two cars, which obviously were trying hard to avoid the missiles. And which car would eventually avoid the expected fiery collision and finally go on to win?

This was left unanswered. For this, the audience had to log on to ‘SeeWhatHappens.com’. A mind numbing 31 million hits were received on the website, of which 11 million hits happened six hours after the ad’s debut. Unmistakably, treading the unbeaten path, is the key to drawing attention of the potential customers. For example, when the Axe perfume was launched in India, it decided to do something different. A half page flap was shaped in the form of sexy lips in Sunday Times. One could lift the flap to view the “AXE effect!”

You have to reach out to your audience in different ways. You have to almost catch them unawares. When Sony Entertainment Television was about to start its musical game show, “Kuch Kehti Hai Yeh Dhun,” instead of giving advertisements, it thought of a different strategy. A contest called “Name the Tune” was started via SMS. They received over 35,000 entries via SMS alone. Though a simple enough concept, the fact is that you have to work out the most effective combination of marketing vehicles for your brand.

UNDERSTANDING MEDIA

In this market of cut-throat competition, not only is the advertiser looking for the right media, but the various forms of media are trying to make themselves attractive by reinventing & modifying themselves; they are even encroaching each other’s turf to grab a larger share of the ad spend. For example, newspapers these days with their colour supplements are using their good looks to swipe away advertising revenues from magazines. Even the TV medium is doing the same to newspapers.

News that was earlier the stronghold of newspapers is now available on TV. Entertainment, which traditionally was the stronghold of TV, is now provided by newspapers and their glossy supplements. Radio had suffered a silent burial with the advent of the TV. But the launch of FM channels has suddenly made it hip once more to listen to radio. Radio Mirchi, Radio City, Red FM are just a few of the uniquely popular channels leading this amazing re-evolution.

SO, WHICH IS THE RIGHT CHOICE BABY?

Mediums are aplenty. What the media planner needs to decide is, which medium suits which product or brand. Placing the right message at the right time in the right media is the key to success.

Creating a good message is just half the battle won; what’s equally important is deciding where to put the message. Should it be the newspaper or the magazine or TV or outdoors or any other experimental medium?

‘Kyun Ki Saas Bhi Kabhie Bahu Thi’ might have kept you hooked for years – but the fact is that it has also kept advertisers hooked. These serials rule the prime time and command a hefty price too. Balaji Telefilms, the production house handling some of the most expensive programmes ever made, knew what would sell. They had understood the sentiments of viewers. This led to the very famous love-hate relationship of a daughter-in-law and a mother-in-law being exploited to the hilt. And the reason is because Indian women just can’t enough of this; and hence “Kyunki Saas...” and its clones have become such IMAGE MATTERS

The image, and not the cost of the advertising medium, sometimes influences the advertisers in deciding which media to choose. Various media classes are advertising about themselves to reposition their own image. It’s not a waste, but an excellent long term strategy. The image would attract the right kind of programmes and hence the right kind of advertisements. And the fact is that the promos don’t just entertain, but also inform and create the desired brand identity.

And it’s not just the promos, but even the logos, the punch lines etc, which help in building this brand identity. Zoom did this very effectively by building a glamourous image around itself. Take even the case of MTV (Music Television) or Channel V. It’s said that a lot of people watch these channels, more because of their promos than anything else. Through their promos, these music channels have created an anti-establishment attitude. Promos help you to connect with the desired target audience. So, today Zee has a different image, Star a different one, Aaj Tak yet another kind of appeal. It helps if the media planner can understand this and then decide which product or brand should be advertised on which channel.

Research has proved that when near identical ads were shown to people who were told that they had been pulled out of different magazines, the believability of the ads varied. Readers have different attitudes towards different media vehicle; and advertisements comparatively also get rated in the same fashion. Ads in magazines like Reader’s Digest and People were considered more believable than others. It’s so, because people are in different states of mind while reading different magazines. Analytically, the mood of the viewer affects the ability to absorb the contents.

As early as in 1962, the Alfred Politz research organisation demonstrated that an advertisement in “Mc Calls” (then a popular magazine) would generate a higher “quality” image and brand preference ratings than identical ads placed in general readership magazines. For example, The New Yorker is a magazine which has an exclusiveness and aloofness about it – something well suited for high status products.

At the same time, niche magazines have a different image. They behave like specialists. So, Autoworld is considered to be an expert in the field of automobiles by its readers. Any article about automobiles is more believable if published here, than in any general magazine. The same holds true for the advertisements (of auto vehicles, ancillaries, or other related products & services) that appear in it. At another level, Femina, Cosmopoliton, Elle, Vogue are all glamour magazines, but each has a different image. Ergo, the media planner needs to choose carefully. And amusingly, sometimes, it’s your competitor who decides your media plan!

If the competition is using one media extensively, it probably helps if you avoid that media and choose another one. But of course, critics might argue that that also depends upon quantitative analysis of the customer segments being targeted and the reach thereon. But the fact is, one cannot make a choice based on just TRPs (of TV programmes) or circulation figures (of newspapers or magazines). The choice is also not about the lowest rates being offered.

The job of the media planner is tough, as ‘planning’ itself requires careful planning. Media plans should be well integrated with the creative build up of the advertisement. It can be so much fun and so challenging to be able to stand out in the clutter. And this is nothing but creativity at its peak, for a brilliant advertisement may get lost if not placed properly.

Truly, gone are the days when creative work and media planning were done separately. Today, both need to consult each other to come out with an effective strategy – however time consuming this might be. So pump up the flow of fresh ideas, to help keep the brand alive and noticeable, for today, media planning is not just about number crunching.

Copyright © : Rajita Chaudhuri and Planman Media.

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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Marketing Blunders


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In the 90s, Hoover offered its British market, something very novel. They would get a chance to fly to the US for free if they spent £100 on Hoover products. The offer, open only for very limited period, resulted in about 22,000 people scrambling into Hoover showrooms, buying vacuum cleaners they did not need. What Hoover was giving away for free was worth twice as much as they were asking the consumer to spend. It was something which was too good to be true! People were buying Hoover just to get the free tickets.

What the company failed to realise was, though the offer was for a very limited period, the number of people jumping on to the bandwagon would ensure Hoover’s costs shooting up, sky high. In fact, consumers became so awash that papers were soon full of ads of sale of second hand Hoover vacuum cleaners – some still in their boxes. Couples getting married even warned, they did not want Hoover’s products as presents. It was one of the biggest marketing gaffes. The company eventually landed up paying £50 million for the tickets and was forced to sell up to Italian washing machine maker, Candy!

In the 90s again, P&G was ruling the European fabric detergent. To get back its foothold in the market, its arch-rival, Unilever, introduced a new detergent called ‘Power’. It had a secret ingredient, namely manganese, which could rip out even the ‘stubbornest’ of stains. The product was launched as Omo Power in Netherlands, as Persil Power in the UK, and as Skip Power in France. Unilever had planned a marketing blitzkrieg in Europe to fight for the number one slot and take it away from P&G. Not to sit and wait and watch in the wings, P&G did its own research and came upon an interesting fact. It discovered that the new washing powder produced holes in boxer shorts! P&G hired a PR firm and inundated the market with a campaign showing lots of pictures of clothes damaged by ‘Power’. Though Unilever tried to fight it back, the consumers decided to step aside and switch to safer brands. Eventually, Unilever had to pull out its product and concede defeat after spending more than £300 million on developing, manufacturing and marketing Power products!

Dasani was launched in the US by Coca-Cola as bottled purified water, and soon was a roaring success. Encouraged by this, the company launched the water in Britain too. However, someone discovered that unlike most bottled waters in Britain, which are sourced from glaciers or natural springs, Coke got its from the tap. All it did was purify it and add some minerals. The next day papers were covered with headlines that read, “Coke sells tap water for 95p!” When someone as big as Coke goofs up, the media has a field day.

Coke got a huge amount of negative press coverage. In just five weeks, Dasani was withdrawn from the market, even though it was the purest water available. When your marketing goes wrong, everything goes wrong – since the whole world comes to know about it and the dent it puts is big and deep! You have to have your marketing principles absolutely right, or else failure is certain.

Olympia was a brand of beer which was a pale lager, very similar to Coors. However, it had an image problem. Young people did not identify with it. So the company decided to make advertisements that would appeal to the young. At the same time, it changed its packaging, too, to emphasize the lightness of Olympia. Back in the brewery, the brew-masters know that Europeans liked a richer tasting beer and modified the taste of Olympia. In the blind-taste-test, it came out a clear winner as compared to all other beers. Still, the product failed miserably. While the ads and the packaging had emphasized the lightness of the beer, when the consumer tasted Olympia, it was not so. Instead of judging it as a “rich tasting beer,” it was branded as the “bad light beer.” This mismatch ruined Olympia. The brewers had worked hard on the taste, the ad agency had worked hard on the ads, yet, the brewery was closed down. A sad demise of a product due to mis-marketing.

Marketing wars, as they say, are fought in mind. One has to be very clear about market perception of the product and weave all marketing ideas in-sync with it. Or else, be sure the product will land up in Ithaca, New York. It’s a museum which houses, among other things, marketing disasters and dumb ideas. You would find strange exhibits like – ‘Garlic Cake’ (I wonder who could have tasted it!) or “Dr. Care Toothpaste (a toothpaste in an aerosol can!).

Surprisingly, your product need not be bad to fail. In most of the cases, the product is great. It could fail because someone simply failed to communicate the product’s benefits properly to the audience. The concept of “golden eye technology” was developed by Videocon. However, it was marketed so perfectly by LG that one felt they came out with it first! Zen is a good car still. Today, it’s gathering cobwebs in the garage and no one wants it. It failed to market its benefits efficiently.

Strand was a brand of cigarette, which was advertised using the best of talent. Its jingle was written by the very famous Cliff Adams. The model was Terence Brooks, who looked like Frank Sinatra. He was shown standing on a lonely street in London, wearing a trench coat, a hat and lighting a cigarette, as a haunting melody enveloped him. It all looked so good. And finally, the punch line “You are never alone with a Strand!” As expected, the agency was barraged with enquiries. No one was bothered about the cigarette. Everyone wanted the music! The people perceived the cigarette to be a loner’s cigarette; and no one wanted to be termed that. The product had to be withdrawn while Cliff Adams rose the popularity charts for his music and released a hit single. “The Lonely Man Theme.” At least someone benefitted!

Such goof-ups leave everyone bewildered. Vidal Sassoon came out with its “Wash & Go” shampoo. Someone misinterpreted it as “I wash my hair, go.” The shampoo could never again find a place on the supermarket shelves! In Spain, Coca-Cola came out with its innovative 2 litre bottles, but they did not fit into the local refrigerators of the Spanish market. The product had to be withdrawn!

Great products fail for no fault of theirs. However, some people have made it their business to find out such brands from the corporate trash bins and turn them around. One such man is Jeffrey Himmel. He believes, “If you have the right product and do the proper kind of advertising, the cash register is going to ring.”

Ovaltine was already assigned to the bottom-most shelves of stores and had started fading in the consumer’s memory. Jeffrey picked it up. Made simple ads reminding people, their old favourite was still around. Wherever he got the cheapest rates, he bought those slots and bombarded the air-waves with these ads. In 100 days, sales doubled. The annual sales of the product jumped from $13 million to $26 million!

This is a fact – and this magazine that you are reading is proof of it – business is marketing. You need to know and understand the power of a good marketing campaign. Put in your best efforts here. Or else be ready to write the epitaph of your brand for it to be buried in the brand graveyards to “Requiescat In Pace” R.I.P.

Copyright © : Rajita Chaudhuri and Planman Media.

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

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
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R.I.P.


IIPM - Admission Procedure

Brands that have refused to be dynamic & customer-oriented, have simply been digging their own graves

“We read the world wrong and say that it deceives us,” said Rabindranath Tagore. It’s a saying worth looking into more carefully by our corporate houses and their CEOs. It would help them understand & “read” consumers more accurately, and offer them the right products & services.

According to some estimates, 80% of all new products fail upon introduction, and a further 10% die within five years. Booze Allen & Hamilton, too, published a finding which found the simple truth – most new products fail! Yet, corporations repeatedly spend their precious resources on products, just to fail time and again in the market. Come to think of it, more that 22,000 products are introduced each year – most fail. Why?

Adapt or Die

Since the beginning of time, the survival rule on this planet has been simple – only those who have been ready to adapt to the changing circumstances have survived, the rest have perished. 99.9 % of all species that have existed on the planet have become extinct. The marketplace, too, seems to follow this killing jungle law.

This product used to rule the Indian roads. Launched in 1972, the brand was the quintessential part of every bride’s dowry list. It used to have a waiting period of more than 10 years. This superstar of a brand was none other than “Hamara Bajaj”. However, this vehicle of the masses, the inimitable Bajaj Chetak scooter, officially closed production in December 2005. Bajaj did not change with the changing needs of the consumers. Chetak – named after the most dependable and reliable stallion of Maharana Pratap – could not keep galloping forever. For almost 40 years, the company did nothing to change or modify the design of Chetak. This winner succumbed to the growing & changing demands of the consumer. How ironical, that a product that had a tag-line of ‘You can’t beat a Bajaj’, itself got beaten in the marketplace, just because it didn’t change.

When it came to the ‘pain rub market’, only one name loomed large – Iodex. It ruled the market for almost eight decades. However, somewhere down the line, it forgot that the consumer is the king and stopped listening to him. It did not realise that there was someone waiting to fill the gap. Surreptitiously, Moov moved in and dethroned the king. A brand owned by a giant like Glaxo, commanding not just more than 50% of the market share, but also a huge goodwill, is dwindling today! Ooh, Aah, Ouch!

The name Federal Express did not match with the express delivery service that the brand stood for. People perceived it to be a slow government organisation. They immediately changed the name to a smart & snappy FedEx. Suddenly, the Fed was a happening company!

As home baking took a back seat, thanks to the packaged food culture taking over the market, Arm & Hammer changed too. They started promoting their baking soda as a deodorizing agent for refrigerators & drains. Sales, once again, shot through the roof.

There is no place for complacency in today’s market. When the theme restaurant, Planet Hollywood, was launched in 1991, it seemed to be a jackpot of an idea. You had top Hollywood stars like Arnold Schwarzenegger, Bruce Willis, Demi Moore and Sylvester Stallon, who had stakes in it. The place was decorated with Hollywood memorabilia. The recipes were given by famous stars. They even had a full line of Planet Hollywood clothing being retailed at the restaurant. People were curious and thousands flocked in. However, very few came in a second time. They felt the food was nothing great and it was over priced. The company was too much in love with itself to look down from its ivory tower. It refused to change! From 95 outlets, the number reduced to 13; and by 2001, its founders, Robert Earl & Keith Barrish, were struggling to escape bankruptcy. The planet flew out of its orbit!

If success makes you arrogant, you are bound to fail. Hayes was a brand that was as strong as Microsoft and Compaq. Sometimes, people bought the Hayes modem before they even purchased a computer. The consumer was in love with the product. However, success muddled up the company’s vision and they did not see the changing needs of the consumer, who now wanted many more features. The company refused to budge and today lies buried in the godowns of failed products.

Initial success does not guarantee long-term success. You need to re-invent yourself. You can not rest, on your past laurels. Customers have to be nurtured. So it’s imperative to innovate constantly. Margo, one of the oldest soaps in India, refused to do that. Back in the good old days, when people’s tastes were not so refined and were much simpler, a good soap with the medicinal properties of neem was enough to convince them to buy it. However, with time, the consumer wanted better packaging, better fragrance, better shapes. Margo refused to re-invent itself and lost out on the younger generation, who refused to pick up an old, ugly looking soap. It was a classic case of waking up to reality a bit, too late. Lifebuoy, almost as old as Margo, changed quickly and adapted itself to the changes. It survived! Margo, even with its neem content (something Indians depend on today, too) had to taste “bitter” failure! Darwin’s law still rules. It’s still the survival of the fittest!

Copyright © : Rajita Chaudhuri and Planman Media.

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

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!



Saturday, June 28, 2008

...portend that the Indian elephant may just be getting ready to take a nap?


When IIPM comes to education, never compromise

With ...portend that the Indian elephant may just be getting ready to take a nap?amazing consistency, every time analysts come up with a figure, the Indian economy gleefully slaps them with a higher growth rate, resembling an Indian cricketer with his hands on his head after hitting a sixer, and that too on a no ball. The 9.3% growth for the quarter ending June 2007 was another forecast beating the much-hyped estimated growth rate. Well, the macro issue here is not the credibily of analyst forecasts and definitely not the fielding efforts of our cricket team, but the fact that despite the gung-ho performance of the economy, this growth is nevertheless a moderation in economic activity (when compared to last year’s growth). Analysts have already begun scripting the tale of a feebler overall growth rate for FY08 as compared to FY07’s amazing 9.6% growth tally.

First of all, the monetary policy decisions taken by the central bank are yet to have their full impact on the economy because of the time lag that exists between policy decisions and their impact on the economy. As Sunil K Sinha, Head & Senior Economist, CRISIL Ltd., reveals to 4Ps B&M, “The first quarter number seems to suggest no impact of monetary tightening measures on growth. I believe this may be due to the time lag between the monetary policy decisions and their impact on the economy. The subsequent quarters in my view will witness the impact of monetary tightening on growth.”

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IIPM Editorial, 2008

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

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The smoke signals...


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What’s more, it can get even worse. With the rupee going through the roof against the dollar, there are good chances of growth dampening in the coming quarters. There’s no doubt that rupee appreciation has already been denting exports and the problem is that there’s no stopping it. Foreign capital inflows have fuelled a significant appreciation in the domestic currency. Currently, the RBI is faced with a situation that’s termed as the ‘impossible Trinity’ – of maintaining fixed interest rates, with a free flow of foreign capital and an autonomous monetary policy. It’s a vicious cycle: it starts with capital inflows, which jack up the rupee against the dollar, forcing RBI to intervene by buying dollars. This in turn increases money supply in the economy that fuels inflation and leads RBI to raise rates. Increased rates go on to attract more foreign capital. Sinha adds, “So far as capital inflows are concerned, they would continue to put pressure on rupee and pose difficulty to RBI in terms of policy choices.” Here’s hoping that the calculation may get a trifle simpler for RBI in times to come… and may the batting line-up for team India only improve hereon!

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Source : IIPM Editorial, 2008

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

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Friday, June 27, 2008

Run-of the- mill

But what’s the big deal on this one? Another one of those run-of the- mill on ‘how to?’ and ‘why to?’ manuals sagging with corporate balderdash. Well, for those always on the lookout for some business gyan but have grown cynical at falling standards of these fancy titles, manna comes for sure with this release and here’s the reason why? Formerly a COO with Microsoft, ‘Bob’ Herbold plays the inside man – the horse. His days at Redmond put Microsoft right on top with accelerating revenue graphs and profits that saw a seven-fold increase in his tenure. And prior to that high profile graph-show, he served a solid 26 years on campus at Proctor & Gamble (P&G) eventually quitting as Senior Vice- President of advertising and information services. “If you are successful, you start thinking you can walk on water,” Bob quotes the famous Dr. Z, credited with the recent up-swing in the Daimler Chrysler fortunes, in a bid to “help individuals and organizations become successful and stay successful.” Definitely an over-opti the inside man – the horse. His days at Redmond put Microsoft right on top with accelerating revenue graphs and profits that saw a seven-fold increase in his tenure. And prior to that high profile graph-show, he served a solid 26 years on campus at Proctor & Gamble (P&G) eventually quitting as Senior Vice- President of advertising and information services.

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Source :
IIPM Editorial, 2008

Success and its alluring traps…

In change, in today’s times, lies the only constant, one often reads but barely interprets. From heavy weight (and ageing) politicos to top corporate houses – to consider an Indian angle – be it the sun kissed broad roads of sealing-affected Delhi or the vertically skyrocketing commercial hub of the sub-continent, leaders of all fronts and heritage are known only too well to have downplayed competition whiledismissing it as another adventurer and eventually ending up in submission to that very same ‘adventurer’. It’s perhaps a pattern on this ever evolving planet, maybe a cycle – an unwritten code, as indeed “it’s too easy to be trapped in the exhilaration of the present to believe you’ve found the true and everlasting formula for sustained success” which assuredly “doesn’t exist.” Thereby cold shouldering further deliberations on the desi front, Robert J. Herbold in his corporate advisory, Seduced by Success introduces us – with great length and detail – to the ‘Nine Traps’, that according to him, corporations must avoid to not only survive bouts of depression but continue to evolve as a pioneering organization widening in depth and holding on to the envied position of being number one.

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Source :
IIPM Editorial, 2008

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


A stitch in time…

Fashion’s raking in moolah and more!
It’s making itself known to the world… and that’s really saying something! Worth a whopping $1.8 billion (and growing at 20-30% annually) the Indian fashion industry is all set to take another quantum leap… all thanks to the much acclaimed fashion weeks back home that have taken the industry by storm. Be it the upcoming Wills Lifestyle Fashion Week (September 5-9) or the Lakme Fashion Week in October, Indian designs and designers have not only reached out to the world, but have also integrated the world in themselves. Scores of foreign models who were specially auditioned for the 10th exposition of WLFW, along with 72 fashion designers unveiling their collections make it the largest business platform for Indian designers and marketers. However, opines ace designer and member of the board, Raghavendra Rathode, “We might say that Indian fashion is going global, but the reality is that if you want to go international, the designs have to be completely different. And although the fashion weeks do contribute locally, we cannot really depend on them to hit it off globally.” All said and done, one would have to agree that Indian fashion is indeed growing bigger by the day!

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IIPM Editorial, 2008

Thursday, June 26, 2008

We were the first to introduce quad core on desktop &... our second generation quad core product this year

INTEL... Their innovative architectures have drawn new boundaries of performance, capabilities & effi ciency... well, they are pushing it further

It “We were the first to introduce quad core on desktop &... our second generation quad core product this year”all started with a small silicon chip, the invention that sparked off a revolution, and one that continues till today. Be it the acclaimed Core 2 Duo desktop chip with Advanced Smart Catching, Smart Memory Access and Wide Dynamic Execution (all bundled in small chip); or the recently launched Intel C++ Compiler and Fortran Professional Edition, two power-packed software products that definitely are a deadly combination of highly backed compilers, performance libraries and Intel Threading Building Blocks (and speed up a computer’s responsiveness strikingly), Intel has always redefined technology. Of course, the products and initiatives from Intel – the world leader in silicon innovations – have never failed to impress.

“We were the first to introduce quad core on desktop & server and will be introducing our second generation quad core product this year,” John Mc- Clure, Director, Marketing, Intel South Asia, Intel Technology India Pvt. Ltd shares with 4Ps B&M.

And if this is not enough, the NOR multilevel flash memory chips at 1-gigabit density using its advanced 65-nanometer (nm) process technology is coming fresh from its stable. The new technology is sure to improve flash performance to enable the next generation of handsets that deliver new and enhanced capabilities for endusers. That’s being on top again!

So, it’s the undying thrust on innovation that keeps the chip maker up there, much above the rest. And the journey does not end here for sure...

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IIPM Editorial, 2008

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

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LG


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All this talks highly about the fun and transparent culture that is followed at LG. Apart from this, LG also fosters a learning culture and every employee has to undergo a minimum training of eight days each year. Yet, Verma is of the opinion, the best training is the one that is learnt on the job as classrooms training is pretty redundant. Learning is also substantiated by empowering the lower level employees. Another USP of HR in LG is that despite being an MNC, the decision making is in the hands of the local managers.

LG also lays great emphasis on the reward mechanism. LG pegs highly on the variable component. If one is among the top 20% in terms of performance, then s/he can get about 10 months salary in the form of bonus for a year and the following 20% get about 9 months salary. A good relationship is built on compromise and a great deal of give and take on both sides Well life’s truly good for the ‘L’eading ‘G’uns of the Indian consumer durable industry, which adheres to this very philosophy.

Edit bureau: Surbhi Chawla

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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.
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Wednesday, June 25, 2008

BRAND : Xhale - Simply chillicious


When IIPM comes to education, never compromise

BRAND : Xhale
BASELINE : Simply chillicious

4Ps TAKE : One Xhale - Simply chilliciouslook at this ad and you would be reminded of lovey-dovey flicks like Love Actually, Paris je taime, et al. But lay a bet; you will be left wondering what’s the association between the sugar-free Xhale and love. An ad that is unsuccessful on almost all counts, no decent storyboard, no sensible concept and moreover, there is a communication crisis. A guy sitting in a café, pops in Xhale and keeps staring at a girl, wondering whether she loves him. Excuse me, what kind of weird concept is that? Isn’t the product meant to be a sugar-free mint for health-conscious adults that prevents tooth-decay? So from where does the cupid factor arise? Guess the creators of the ad have been more prone to heart-breaks than tooth-aches, now we know where did they generate this connection from, don’t we? This is what happens when you try to weave in a concept that is not in line with the product. Hats off to the team for a needless concept and the meaningless theme. We would like to ask, is it ‘Simply Chillicious’ or shall we call the execution equally ridiculous? A piece of advice, please inhale some sense before getting down to making an Xhale ad next time.

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IIPM Editorial, 2008

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

Breaking news – Maruti’s macho men are back again to break more hearts...


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Not Maruti’s macho men are back again to break more hearts... long ago did we hear the jingle ‘little boxes...’ in the ad featuring Zen Estilo (Maruti’s extension of its brand Zen) and who can forget the cute little daughter associating Maruti’s brand, Esteem with her strong dad. But this time the cuteness of Maruti ads has downrightly been invaded by the men (read macho cars), as they race down the Indian roads to impress the good looking women. We are talking about the latest talk of the town – the powerful ad of Maruti SX4, the company’s fresh launch in the Indian market. SX4 sounds quite weird, especially when it’s thename of a sedan. But Maruti has a quick response to that. Here is what SX4 stands for: S stands for ‘Sporty’ and X stands for ‘Relax’ and the final 4 stands for ‘four season drive.’

Recall the hot-shot race-car named Lightning McQueen in the animated movie, Cars. Well McQueen had proudly stated in the movie, “I’m a precision instrument of speed and aerodynamics.” And this is exactly what Maruti has crafted for its new brand, SX4. The ad introduces SX4 as a modern car with masculine features that can capture anyone’s attention, especially the girls. While speaking to 4Ps, B&M,Rajesh Kochhar, Associate Vice President, Lowe elaborates, “The SX4 stands apart from its competitors on various counts – be it features, looksor performance.” The communication clearly leverages the product’s superiority and also lays down the foundation of the brand.

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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.
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Every silver lining has a cloud!


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If the Beijing Olympic committee, is to be believed, air quality has improved from 100 good air-quality days in 1998 to 241 good air-quality days in 2006. In a radical antipollution measure, the host has barred millions of vehicles from the streets of Beijing. Other measures include upgradation of vehicle emission standards and planting of 28 million trees. Furthermore, close to 200 of the most venomous factories & power plants have been moved or shut, five major coal-fired power plants are being upgraded & Beijing’s first wind-power station construction is underway. Cloudseeding is another measure resorted to wherein the timely launch of chemicals into the atmosphere will dispel clouds and help control time & place of rainfall. New Delhi is certainly paying attention as it prepares to host the Commonwealth Games in 2010. States Dr. Lalit Lumar Bhanot, Secretary General, Commonwealth Games to 4Ps,B&M, “The Beijing Olympics 2008 will be more of a summer game & hence their precautionary measures in terms of pollution control & a more scientific measure of cloud seeding. Even our Science & Technology ministry is keeping us informed of all such developments and helping us roll up everything on time.”

Environmentalists, however, argue that many of the measures adopted are short-term and shortsighted. Amidst such a milieu, human rights as well as political activists can always play spoilsport. Dissidents will champion the cause as to how glories have been built on the carcasses of ordinary lives. And ,while China may prove a perfect host for the Olympics next summer, there could be a negative fallout of massive proportions it may find hard to manage. In such an instance, publicity could instead become the dragon’s greatest undoing.

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Source : IIPM Editorial, 2008

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

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Tuesday, June 24, 2008

The kooky logic of ACNielsen


When IIPM comes to education, never compromise

And when was the last time you heard of an institute called Simsree?!? According to the kooky logic of ACNielsen, ‘Functional Heads’ rank Simsree at number 5 all over India, above all b-schools except IIM A, B, C and Prin. L. N. Welingkar Institute of Management. And ‘Young Executives’ go better in the horror ranking scale, ranking Simsree at number 3 all over India, above all institutes except IIM A and B! Think about it. If you were to receive two admission letters, one from IIM Calcutta and one from this hallowed Simsree, guess which one should you be joining? According to Mr. Nielsen, Simsree!

The Indian management education scenario had seen various surveys till date, with almost all of them basing their b-school rankings on actual b-school visits and real-time interaction with b-school faculty. But not the obstinate ACNielsen. Bakul Dholakia, Director, IIM Ahmedabad told us how even the 592 respondents, to whatever extent they might have information, would base their “perception” based on data which could be almost four years old, “as there is no guarantee that that person would have visited the campus of the b-school being rated in the current year.” Leave that factor apart, guess the number of bschools visited by ACNielsen staff themselves while ranking the 1,250 odd bschools? Zero! In fact, sitting in the office, they seem to have more inane confidence in their all-India survey, than the surveyed bschools themselves, who are slogging day and night to bring management education to the lives of Indian professionals.

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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.

Ranked B-Schools


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If you thought the lower ranked b-schools were complaining, here’s an eye-opener, even the top ones feel no different. “The survey is certainly ridiculous,” shouted K.R.Narendra Babu, Chief Administrative Officer of IIM Indore in an exclusive to 4Ps B&M, “I call it an anomaly; it is certainly skewed!” When 4Ps B&M caught up with Sarang Panchal, Executive Director, ACNielsen, and conveyed such cutting criticism, he defended remorselessly, “We’ve had a splendid record of interpretation in the past two decades... The quality of answers and the data that we get is so reliable that even if we have to repeat the same exercise, then we will most likely get the same result!”

“I was sitting with my Director and laughing at the methodology and the quality of questions. We both were actually frustrated!” Prof. Sushil Kumar, Professor-in-charge, Media Relations, IIM Lucknow, was ruthless in his destruction of the survey when 4Ps B&M caught up with him, “I didn’t know what they were trying to extract out of the questions. It’s becoming more and more painful by the day, and I don’t agree with the way the questions were formed!” Sarang of ACNielsen was unmoved, “We follow a particular rigour and method in all our research; and all our research has to have an optimal benchmark that we set. Also, we put in a lot of R&D into our products...”

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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.
The Sunday Indian - India's Greatest News weekly
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review