Medium has a capacity

First and foremost is that this medium has a capacity to target consumers across socio-economic classes – from a Merc to a Maruti driver, and even to a bus traveller – as explained by Abhishek Kandoi, Director, Flash Media Ltd, to 4Ps B&M, “We can capture all sorts of target audience that is not a possibility with any other media.” No wonder that Hutch, Tata Indicom, Airtel, HLL, Suzuki, GM, ING Vysya, ICICI and many more have started using the OoH space with a special emphasis on outdoor advertising. Also, apart from Mumbai and Kolkata, Delhi is also emerging as a major hub for such advertising, especially pegged up by Delhi Metro that has attracted a host of advertisers including airlines, banks, retailers and TV channels. Even in the US, as reported by L.A. Times, a host of 150 big brands such as GM, Coke, Nokia etc have made special campaigns for the OoH media; as a result of which, the US OoH industry has shown a smashing 27% growth in 2006. Alyque Padamsee, considered the trend spotter of Indian advertising, asserting the importance of outdoor media, had once said, “For years and years, advertisers have wanted to impact customers with audio-visual force while they shop.”

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Source : IIPM Editorial, 2008

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

OoH

The New Mantra For Recall
Out-of-Home advertising was never this fashionable a term in India; and it’s rocking further Billboards! Billboards! Billboards! Ever wondered why Mumbai has so many of them and Delhi almost none? Don’t fret; we’ll give the dope on the deal. The Supreme Court had banned billboard advertising in Delhi in 1997; but the rule might just change with the Supreme Court, after a period of ten years, appointing a two-member committee last month to review the past decision and to submit a new draft regulatory code for allowing billboards in Delhi! Code or no code, the fact is that billboards have since time immemorial been a snappy way to communicate the marketing concept to the consumer; allowing him the choice of consumption (that is, he can choose whether to see the billboard or not). Thriving on this tool is the new concept of Out-of- Home (OoH) media, which comprises not only billboards and hoardings, but also newsstands, buses, airport, malls, taxis et al. This industry in India has a whopping compounded annual growth rate of 14% (ICMR estimates) and there are various reasons for this.

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Source : IIPM Editorial, 2008

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

Does Ford really ‘gets it’?

Perceptions are really important for Ford!
When Ford hired Allan Mulally, the erstwhile VP of Boeing, it was on the notion that the new President & CEO will replicate his earlier successful strategies at Ford as well. The belief system had its roots firmly attached to a non-owner chief, one who had an industry expertise in dealing with difficult market situations. Since then a year has passed and Ford still finds itself in the same quagmire bogging its future sustainability. Ironically, even the July 2007 sales charts portray a picture which is very different to Ford’s expected outcomes. Inspite of several initiatives taken by the Blue Oval, the manner in which the company’s way forward programme has been implemented, is still a question! Poor performance blunted the effervescence brought about by the crispy sales of Crossovers. Sales of these mini-SUVs increased by 40%, but the decline in other segments crashed all hopes.

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Source : IIPM Editorial, 2008

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

Competitive challenges

Total July sales stood at 195,245 units, a significant decline of 19% compared to the same period last year. Mark Fields, Ford’s President of Americas said, “We know we have a lot of work to do, and July is a sobering reminder of the economic and competitive challenges we face.” Ford knows well that the excuses are not really working and shareholders are abandoning the major in a way similar to that of the consumers. Ford needs to restructure its portfolio, operations & capitalize on the emerging Asian markets more effectively. So is Ford really listening? Ford’s Becky Sanch told 4Ps B&M earlier that Ford is constantly evaluating its business. Well, that better not be a notion this time or is it still!

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Source : IIPM Editorial, 2008

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

Real life version

It seems more like a real life version of the classic science fiction published in 1870 – “20,000 Leagues under the Sea” interwoven with a modern day suspense thriller. But, if reports are to be believed, then Microsoft co-founder Paul Allen & Russian oil czar Roman Abramovich are in this fast growing league. “In the last year alone, we have seen a great rise in the number of requests coming in regarding our submersibles. Most requests are from mega yacht owners. We are currently building two custom submersibles for private clients,” reveals Karen Hawkes, VP, Marketing & Communications, Hawkes Ocean Technologies (world’s only manufacturer of winged submersibles). No doubt, owning a luxury sub, and that too, custom built, does set the adrenaline rolling for these flamboyant high rollers. But it’s no cheap thrill surely! From two-seater submersibles to around 200 feet long luxury vessels, you have to shell out anywhere from $1 million to $80 million. By the way, there are a number of genuine undersea enthusiasts too, exploring shipwrecks for hidden treasures. The ultra rich searching for treasures? More than enough to make Maslow turn in his grave, we say!!!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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