Friday, August 08, 2008

The brag value

I moved further inside Maruti, understanding the essence of other higher segment brands. For example, when I had a dialogue with I.V. Rao, CGM (Engineering Division), Maruti Suzuki, on this issue, he defended, “We have done a lot of calculations. Without volumes, it does not make sense to launch a product; but then, Vitara is not a volumes player!” Then why did Vitara even see the light of the day? Was it just to build a brag value around the name of Maruti? India’s ‘people’s car’ maker Maruti finds itself in a strange quagmire when it comes to selling higher segment cars with its small car image. According to Tutu Dhawan, famed auto expert, the time is ripe for Maruti to nurture dissociated brands, “Maruti Suzuki should now focus on a diversified brand which need not be related to or connected with the Maruti brand – a strategy that is similar to what Toyota adopted with the Lexus and Honda with its Acura range.” Even Volkswagen employed this strategy at an appropriate timeline with the Audi brand and succeeded.

As a future strategy, Maruti should develop a brand platform through which the company can sell its higher segment cars. Maruti definitely has the capability as far as technology is concerned; perception is perhaps the only impediment. To Maruti’s huge credit, the SX4 brand’s success is part of a branding which has been distinct from the company’s prior efforts. The value packed sedan mesmerised the market with its unique masculinity, features and value; being a Maruti was just an add-on and not the USP. If I were to utilise the same argument, a brilliant product like the Grand Vitara will be justified better with a newer, more upmarket brand. Namita of ICMR adds, “Even future products like the updated 3.6L V6 XL7, Forenza & the concept Kizashi will need specific branding exercises, which the standard Maruti platform definitely cannot provide. Suzuki’s technology more than deserves a newer upmarket, zippy brand for higher segment products; at least for the Indian market.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Wednesday, August 06, 2008

Is “Grey” The New “Gold”?!

monojit lahiri highlights an issue that is on the verge of taking the ad-frat by storm – the over-50 spenders!

Resurgent India is passing through tumultuous times! In a scenario where over 50% of the population is estimated to be “under 25”, youth is god, revered, hymned, celebrated, worshipped and generally perceived as the hottest target group for marketers. What about – er – oldies... the fifty-plus crowd? Nah, chadde, mock the greedy hawkers of products and services dismissively and emphasise that zooming-in on the low hanging fruit called ‘youth’ – symbolising aspiration, want and purchasing power – is where its at. The oldies, they claim, are a boring, washed-up and irrelevant lot, without excitement, adventurous spirit to experiment or desire to live the good life. They are also, usually, broke like hell, which makes them a totally un-sexy constituency!

Perceptive marketers, who have their ears on the ground and track the pulse of everyday life, believe times, they-are-a-changin’. They believe today’s 60’s are the new 40’s – an entire universe away from the fuddy-duddies of yesteryears. There has been a dramatic change in the script, which has resulted in a totally new picture. For example many of the deadly afflictions that caused death in the past… TB, Typhoid, Small Pox, Cholera et al… are history due to the giant strides modern medicine has made. People – generally – are living much longer, in healthier mode, working through the 60s, post-retirement, even sexually active! Unlike earlier times, its not pack-up time to take sanyaas from worldly pleasures and generally concentrate on either looking after the grand children, running household chores for the busy son … or connecting with religion in a scary way! Japan – sharp as hell in these matters (with a population where over 20% are over 65 and by 2015, every fourth person will touch the same figure) got into the act, pronto. Reports allege that at least two mobile phone companies actually design phones for Gen Grey – a sharp, insightful (and profitable) move considering most mobiles are hugely techno-powered since they are largely targeting the younger set.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, August 05, 2008

Emami and the Elysium spin

Friendly culture, deeply rooted organisational commitment and solid trust amongst the employees make Emami the employer of the hour! 4Ps B&M’s Arun Roy analyses...

I couldn’t help myself in drawing up the pesky similii. And why not! Wasn’t Emami Group Ltd in the business of making people lovelier and ‘fairer’? Metaphorically (I just had to quench this pest of an argument that I had churned up an evening before), how ‘fair’ could Emami be in its own HR out‘look’ and structure? How ‘fair’ was it towards its people? How ‘fair’ was it is in managing its human resources? Was Fayol in their HR personnel’s minds while the sales personnel were making unstoppable efforts to remove fatigue, headache, tension, sleeplessness (through their famed Navratna Oil)? Were they able to remove the same afflictions in their own employees as successfully? I knew my cup of truant questions were running over (and could have cost me the interview itself), but Ratna Sinha, Head, HR, Emami Group Ltd, was surprisingly totally supportive in answering all of them...and much more.

Without wanting to sound eulogical, it is a fact that the company considers HR as being one of the most critical and important roles in the organisation. “Emami is all out to have the best HR practices and work on the best trends, which can bring in comfort for the employees and for the organisation as a whole,” averred Ratna Sinha. Almost in copybook language, Ratna shared that Emami believes that employees are the “building blocks” of any successful organisation; ergo, ‘proper attention’ to them is not just a need, but thoroughly imperative. I was curious. With growth being a top requirement, was retaining talent an issue for such a top brand in the industry? “Having the best of talent and retaining them is one of the greatest challenge which any industry faces today. Emami, too, is no exception; and is trying its best to combat them,” shared Ratna. Although It has been Emami’s constant endeavour to put the best employee practices in shape, they also are quite clear that employees’ needs should be aligned with their company’s norms.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Monday, August 04, 2008

No more copy cats!

Will India remain a generics destination or move beyond...

Time and again Indian pharma has proved its prowess in the field of generics. But standing at an inflection, it’s time now that it take its flight towards the research space and unleashes its true potential in the coming years...

The Indian pharmaceutical industry is today at an inflection point. While the industry has gained global recognition for its high-quality affordable generic products, it is now poised to gain its foothold in the area of New Drug Discovery Research.

Time and again we have proved our prowess in the field of science & technology and I strongly feel the day is not far when India will come out with its first New Chemical Entity (NCE).

I certainly feel that leading Indian pharma companies like Ranbaxy will achieve significant success in drug discovery research and have the potential to roll out multiple molecules in the global pharmaceutical market in the coming decade. Why I say that with optimism is because of the following reasons. India is a power house of scientific talent, strong chemistry skills and cutting edge research and innovation capabilities and we are way ahead on the knowledge platform over the developed nations. Our country offers significant cost advantage in innovation and manufacturing, maintaining high levels of productivity. In fact these inherent strengths are attracting and compelling big pharma players to collaborate with leading Indian companies to churn out new drug molecules.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Friday, August 01, 2008

Innocean is a true-blue Hyundai-based agency

It’s not that Innocean is a true-blue Hyundai-based agency only. It does pitch for non-Hyundai clients as well like real estate player, Devasthali, ethnic wear brand, Tantra, and Aureole Inspecs, an eye wear brand to name a few. “We’ve a limited portfolio of non-Hyundai clients and those are to provide our people with certain amount of creative variety,” avers Srivastava. Working on the same category over a period of time becomes monotonous. This gives creative people a chance to flex their creative muscles in other directions and get more experience in other sectors. He further adds, “For us non-Hyundai business is not for revenues. We’re looking at it purely from a creative & strategic satisfaction point of view.”

Innocean, which clocked revenues of Rs.150 crore in 2007, has some big plans up its sleeves for 2008. Not only is the agency adding two more domains viz. events & promotions and digital marketing to its repertoire, it’s also opening a dozen offices worldwide taking the total tally to 20 branches by the year end. To sum up, as Srivastava puts it, “Innocean is all about bringing passion in building brands, which is aptly reflected in our output.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative