Investee: India Infoline

Investor: Orient Global

Investment Value: $139mn
Harshad Apte, Vice President, Strategy and Planning, India Infoline comments to 4Ps B&M, “The rationale behind the deal was very simple and it was capital required for growth of our various businesses.” Talking on how they see the association with Orient Global going forward, Apte adds, “This is a long term association.” Orient Global has entered into this deal primarily as a financial investor. The subsidiary of India Infoline Investment Services, Moneyline, will make use of the group’s expansive network of 600 branches to provide credit to a large segment of the populace, which currently does not have access to organised credit. Moneyline plans for an active presence in 60 cities by the end of 2008. Moneyline hopes to deliver superior services and offer a pleasant overall borrowing experience to the customer.

Orient Global bought a 6.48 % stake in Infoline Ltd. for a consideration of Rs.555 crore ($139 million). Orient Global has invested approximately Rs.1,000 crores in India Infoline and its subsidiaries that include Rs.141 crores in India Infoline Marketing Services for a 10% stake, and Rs.300 crores in India Infoline Investment Services for a 22.5% stake. The capital provided by Orient Global will be used to expand the holding company’s (India Infoline Ltd.) branch network, establish call centres, invest in new technology and set up training facilities and for general corporate purposes. India Infoline has emerged as a dominant player in the broking and insurance distribution space. The capital raised through this deal will help the group to further grow these businesses. The fund infusion in India Infoline Investment Services will be used for expanding business activities of its subsidiary, Moneyline, which is in the business of personal and auto loans, and India Infoline Housing Finance, which is into the business of home loans.

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Source : IIPM Editorial, 2008

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

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ZEE BUSINESS BEST B SCHOOL SURVEY
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Toofan(i) caravan

Girl power to storm the rural ‘ad-man-world’

The amount of opportunities in the vast virgin lands of the Indian hinterlands have tempted many big-ticket organisations like ITC, HUL, Bharti et al to set up shop there. However, the marketing & advertising fraternity, which takes great pride in helping these companies in making inroads into this unexplored marketplace, has itself stayed away from venturing into rural India. But here’s an agency that has changed the rules of the game.

RC&M,which began its journey in 1990, is today a specialist in planning experiential marketing campaigns for these rural markets.

RC&M (previously Rural Communication & Marketing), is the brainchild of Rajesh Monga, who after spending time in the advertising industry decided to start an agency that would cater to rural marketing. Soon RC&M roped in a host of agri clients like Eicher Motors, Parle et al. Four years later RC&M decided to move up the value chain by entering markets in semi-urban areas & even metros. With the passage of time, other verticals – event management, separate company for LEDs – were added to RC&M. Rajesh moved on to take charge of these sister companies, while the baton of RC&M was passed on to his wife, Priya Monga.

“RC&M basically seeks to provide experiential marketing solution to a brand,” an effervescent Priya told 4Ps B&M, adding that under the banner of experiential marketing, the major task is to take brands to the doorsteps of consumers. So unlike mass media, RC&M is more into one-to-one communication. Priya opines, “For such marketing one needs to be clear about where to do and how to do. The target group needs to be spot on as we cater to refined audiences. It’s all about the right venue, the right timing and conveying the right kind of message. In short, experiential marketing is very strategic and driven by results.”

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Source : IIPM Editorial, 2008

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

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ZEE BUSINESS BEST B SCHOOL SURVEY
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Merely Bollywood

From merely Bollywood, the noose has been expanded to straddle advertising films too. The advertisement to film ratio for Red Chillies is in the ratio of 20:80, since ad assignments are restricted to brands that SRK endorses. Now, the team is keen on expanding the size of the net to rope in other brands too.

To keep pace with his growing enterprise, SRK recently shifted premises of Red Chillies VFX to Mumbai’s posh Lokhandwala area and his team just can’t stop singing his praises. “We are amazed at his quick decisions. When we asked for a bigger office, he did not hesitate a moment and despite the huge cost of real estate in Mumbai, within a week we had finalised a new place. If that’s not the sign of a good entrepreneur, I wonder what is,” gushes Arjun.

Besides, Shah Rukh is also carefully nurturing brand SRK both on and off screen. Close associates point out that Shah Rukh, in fact, is so obsessed with his brand persona, that he sometimes cannot help referring to himself in third person. Add to that his intelligence, witty remarks, a wicked sense of humour – and you have all the trappings for a media savvy, charismatic and shrewd business leader.

Incidentally, Shah Rukh is not the only Bollywood superstar who boasts having this entrepreneurial fire in his belly. Amitabh Bachchan too headed in a similar direction, but was badly scalded due to the financial mess, which his company ABCL landed itself into. Thankfully, Bachchan bounced back. Kaun Banega Crorepati gave him a new lease of life and he repaid his debts. But, the entrepreneur in him lies dormant to the day. There’s also the jumping jack of the 70s – Jeetendra – who sits as promoter in the Rs.1,515 crore Balaji Telefilms. While one would like to give him credit, he himself passes off all praise to his daughter Ekta Kapoor for the success of this production house. So, it would not be entirely wrong to say that SRK has dared to venture where no other Bollywood superstar has tread.

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Source : IIPM Editorial, 2008

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

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ZEE BUSINESS BEST B SCHOOL SURVEY
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“IPO On, Marketing On”

Bid adieu to the days when IPOs were considered as mere financial products. The way they are being branded, positioned and advertised these days, they are nothing short of acquiring the stature of a white-good brand.

‘Gone in sixty seconds’ puffed market watchers, even as they saw the much-awaited Reliance Power IPO being lapped up hook, line and sinker by eager retail investors and frenzied institutional investors. The IPO, from the Anil Ambani stable, ended with an oversubscription figure of 73 times, mopping up close to $200 billion against a required $3 billion. Did the younger scion of the Ambani clan achieve the near-hysterical response of investors on the back of Reliance Power’s visible business prowess and profitability figures? Not really!

Even during the build up to IPO, many analysts continued to point out that the first project that is expected to generate any meaningful earnings for Reliance Power would go on stream only in December 2009. Yet, millions betted on Reliance Power on the back of the great media buzz that Ambani Jr. managed to create around the IPO. ‘Power on, India on’ claimed Reliance Power and repeated it a million times a day – via 250 Reliance World, 1,300 Reliance Express and 2000 Reliance Money outlets, 62 Adlabs theatres, Big FM, caller tunes, apart from 30 to 60 second spots across 60 TV channels and over 50 radio stations. Did unsuspecting investors have a chance of missing this bait (which cost Rs.30-35 crore, spread over two weeks)?

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Source : IIPM Editorial, 2008

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

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“HCL is India’s answer to the global tech brigade,” says Vivek Seigell, Head–Retail, HCL Infosystems

At a time when pundits cannot but stop peddling India as the emerging IT superpower of the world, thanks to world-class IT service companies like Infosys, Wipro and TCS, the dampener comes in the form of Indian brands in the global IT space (both software and hardware), which are conspicuous by their surprising absence. Forget the globe, in the Indian market itself, there is a lamentable dearth of strong desi IT brands, with perhaps a lone contender being HCL Infosystems, which has been able to hold its own against strong global hardware brands like Hewlett Packard (HP), Compaq and Lenovo.

“Indian IT brands are virtually non-existent today because whatever few players were there have been unable to keep pace with the vagaries of the Indian IT market. Either they were small players, who grew up and died as local players or those who could never work in a consolidated fashion at a national level,” affirms Vivek Seigell, Country Head–Retail, E-tail & Consumer Finance, HCL Infosystems Limited.

And Vivek should know. High on the recent launch of HCL’s ultra-portable sub-14K laptops for the Indian market – HCL MiLeap X and Y Series – HCL is gung-ho on the latent potential for its latest offering. A few years ago, the company had also launched its sub-10K desktop PC, and successfully marketed it across class B and C towns, bundling it with good finance options. Small surprise that while HCL has managed to make a sizable impact in the domestic PC market, it is trailing behind in the laptop segment, where HP, Compaq and Lenovo rule the roost.

According to the latest IDC data, HCL Infosystems claims a tall 15.5% of the Indian desktop PC segment (behind HP); while in laptops it trails at a poor number 4 position (with a 7.4% market share), behind HP, Lenovo and Dell. But Seigell is quick to point out that comparing HCL market share figures to HP will not be a true apple to apple comparison. “After all, HP market share figures include data for Compaq as well,” he quickly retorts. However, one of the first Indian ‘IT garage start-ups’ in 1976, Seigell believes that HCL has entered the high-growth stage today. “The market as we know it today has matured considerably,” Seigell says, adding that way back when HCL began operations in 1976, the company largely depended on and catered to enterprise business. “At that time, consumers came last for HCL as IT was more enterprise than personal. That’s the way markets threw up the opportunity,” he reiterates. Given that the last link standing was the consumer, the IT major now not only hopes to bridge that gap with its MiLeap Series, but also with its enhanced focus on the retail end of its operations – spearheaded by Seigell.

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Source : IIPM Editorial, 2008

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

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Pro-active

Years ago, a can-do spirit prompted K. P. Singh to buy then-barren land in Gurgaon. His foresight has made him one among the richest in India today

DLF has brought about a paradigm shift in the real estate industry. It was proactive in realising the potential of the sector & proved its ability by delivering 9-10 million sq. ft. of finished structures for FY07 and has plans to get another 12-14 million sq. ft. ready for FY08. It also plans to achieve 7-8 million sq. ft. in commercial scale and 25-30 million sq. ft. in retail scale by FY11. With plans to foray into the ‘hotels’ business (with a JV deal with the Hilton Group) the future will only get brighter for DLF.

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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 Fourth Base

Be prepared For A Long Race: This event has just begun. It’s a long distance race, where Indian players have to constantly evolve, rejig strategies and anticipate the future. So, one will need to think long-term and face critics who will contend that it’s impossible for India to become a car power. Such apprehensions are already being expressed. “As far as Brand India is concerned, India will be more towards local manufacturing and sales. India will still take some time as far as competing with western companies in their home markets is concerned,” says Bulle.

Adds Toyota’s Swami, “With the present legislations changing, it doesn’t make sense to launch a market-specific product as today, cars have to have a global appeal.” What he is implying is that the future of ‘Made-In-India, Made-For-India’ products is perhaps not too rosy. Finally, Jigar thinks that “to become a super power, there is still some time to go for India. People are still looking at India as a manufacturing base, and they believe that most of their production will be sold in India itself. We should be making cars purely for the luxury exports market to earn some much-needed credibility.”

Future government policies will surely play a critical role for India to become a global player in passenger cars. The duty structure needs to be overhauled, there needs to be some form of diplomatic efforts to push the India brand; remember how commerce minister Kamal Nath supported L. N. Mittal’s buyout bid for Arcelor, and the Indian government stood behind Tata, while he was taking over Corus.


Ashok Jainani, Head of Research, KSL India, talks about another area where government intervention is required. “The growth in the auto and auto components sectors goes hand in hand. The three major ingredients of auto components segment are the cheap availability of raw materials, power and labour. In the case of labour, we do have an edge, and the cost of materials is almost the same across the globe. But power in India is expensive. If we can somehow bring it down, then we can simply multiply our edge in car manufacturing.” However, this entails serious reforms in the power sector.

Even if the government manages it, India Inc. will need to think differently if it wishes to become a global player in any sector. In the past, we have seen several opportunities pass us by despite the distinct advantages that brand India enjoyed. For example, India could have become the largest generics player; it lost out to China. Similarly, by this time, India should have become a value player in the outsourcing segment. But the country is still stuck in the age-old mindset, where you don’t fix things unless they go wrong. No one, not even the IT majors, seem prepared for the dramatic changes that will inevitably change the rules of the software services game in the next five years.

If the car manufacturers think, or act, the same way, the Indicas and Altos will only be seen in fringe markets like Africa and Latin America. Don’t be surprised if India designs the world’s cheapest car, but it is made in another country by a global player. Surely, India would not want to lose out on this unique opportunity.

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Source : IIPM Editorial, 2008

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

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Pop in the growth pill

As Malvinder Singh steers Ranbaxy into 2008, he’s a happy man

As the largest player in India’s pharmaceutical industry, Ranbaxy’s meteoric rise can be attributed to lot of factors. But one, which simply can’t be ignored, is the highly aggressive streak in Malvinder Singh’s (CEO & MD, Ranbaxy Laboratories Ltd.) personality. Under his aggressive guidance, the pharma major is all set to unlock its future potential in 2008. This year, he not only wants to make key acquisitions in emerging markets; but also on the cards is the bid to start launching First-to-File (FTF) products.

No doubt, Indian pharmaceutical companies have been going through a rough patch for quite some time now. Even Ranbaxy has seen its worst, with rising pricing pressures in the generic industry. However, industry experts say that the worst will be over in 2008. Going forward, “Ranbaxy is all for recovery, on the back of various initiatives taken, among them, enhancing its presence in the less penetrated regulated markets and having a robust product-pipeline,” prophesies S. Nangra of Angel Broking.

Over the past few years, Malvinder has managed to create a more balanced business model for Ranbaxy with near-equal emphasis on developed and emerging markets – all set to deliver results at a time when the world’s largest pharma market, the US, is going through severe pricing pressures. Moreover, he took a conscious decision to increase Ranbaxy’s focus on emerging markets a few years back, and has advantageously positioned itself ahead of others. “We will continue to focus on expanding operations in emerging markets like Romania, Brazil, Russia, China, South Africa, Central & Eastern European nations,” he told this magazine. No doubt, these markets which are primarily branded ‘generics’ have relatively higher profit margins, offering sustainable earnings.

While Ranbaxy moves into 2008, Malvinder expects a surge in the demand for generic medicines prompted by a large number of patent expiries across the globe. According to industry experts, drugs worth $60–70 billion are estimated go off patent in the next few years. And Malvinder is all set to capitalise on this huge opportunity, as Ranbaxy has now gained a strong foothold in prolific markets like the US, Europe & other developed countries. “We will look at acquisition opportunities in the US, Europe, India and other emerging markets and will consider target companies based on the value and the synergies that can be unlocked from such a deal,” he told this magazine. Moreover, with 18 FTF products (significant amongst them being Valtrex, Lipitor, Flomax) having a market size of $26 billion, the company is all set to rake in the moolah. Malvinder plans to launch these FTF products starting 2008, which offer a major commercial upside to Ranbaxy’s organic growth plans.

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Source : IIPM Editorial, 2008

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

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B-schooled in India, Placed Abroad (Print Version)

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The Bingo lingo?

They’ve certainly hogged market share with their ‘different’ ads
Okay so what comes to your mind when we say ‘Bingo’? Allow us to guess. With definite conviction, the answer is crunchy snacks and funny commercials. Yes, there’s no confusion in saying that the great combination of Bingo and its commercials has been the most mindless advertisements shown on the television in 2007.

Well, that was exactly how ITC wanted to place Bingo when it ventured into the snacks segment in 2007. “We wanted to launch an innovative product and wanted the positioning to be very different. It was targeted at the families but at the same time necessarily had to connect well with the generation next. We wanted to convey that Bingo is for the masses all across the country,” explains Ravi Naware, Division CEO, ITC Foods.

Actually, launching a galactic attack against the global giant PepsiCo was not that easy. But it was ITC’s product innovation, market penetration and pricing that did wonders for the company. And this was supported by mind-blowing aggressive ad-campaigns. The positioning was crystal clear – Bingo was supposed to be an innovative product, different from others. “We wanted our ad campaigns to be very innovative and that they should stand out from its rivals. It was supposed to have a clear cut positioning in consumer mind. So, we combined wide variety of taste with the chips,” explains Ravi.

Not a hollow boast as it helped ITC to capture a market share of 16% in its debut year. More importantly, it was well accepted by the audience. Echoes Malvika Mehra, Senior Creative Director, O&M, “In the past year, I haven’t met with any one who haven’t given me a feedback on Bingo and I know that I have achieved my target, for we were instructed that Bingo ads have to be noticed by one and all.”

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Source : IIPM Editorial, 2008

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

B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)

Reliance must think a'Fresh'

still aim at ‘Fresh’ strategies.

The most realistic scenario for Reliance Fresh now is to perhaps co-opt the middlemen in their retail journey. Those in the know say that there are at least, four to seven levels of intermediaries between the farmer and the consumer. Reliance was planning to eliminate all of them. If instead, Ambani works out a strategy to make at least a few of the intermediaries a part of their supply chain, by upgrading their storage facilities & skill sets. If nothing else, the number of those protesting will subside substantially.

Another strategic move would be to engage local grocery stores as Reliance Fresh franchises. “At least, that way the grocery guys will begin feeling that it is not a zero-sum game,” opines an industry insider. In turn, Reliance will also benefit from their unparalleled proximity to consumers, convenience and services offered.

There are still others, like Prof. Mohanbir Sawhney, Director of the Center for Research in Technology & Innovation at Kellogg School of Management, who believe that the capital-intensive business model of Reliance Retail makes their ventures very risky. But industry insiders say that that’s another chicken and egg story. “In the absence of effective back-end operations viz. transportation and storage, it is tough for companies like Reliance to effectively stock their front end and wait endlessly for someone else to bring the back-end up in order,” avers Asitava Sen of KSA Technopak. And once Reliance sets up the back-end infrastructure, they may later lease it to others to operate and focus on their core business. Another option for Mukesh Ambani is to set his eyes on the cash & carry business, like German major Metro and South Africa’s Shoprite are doing. Since FDI is allowed in the cash & carry segment, the B2B business model propounded by these stores is emerging as a potent tool for global retailers to tap into India’s high-potential semi-urban and rural markets. This way, instead of supplying to consumers directly, Reliance Fresh will instead be supplying to a battery of small retailers, who would prefer Reliance Fresh produce because of its lower prices. “Instead of reaching out to 6,25,000 villages, you just cater to 60,000 retailers. This way, Reliance Fresh will ensure that ‘unorganised’ wholesale market is turned into ‘organised’ wholesale market,” offers Sen. He adds that while Reliance Fresh’s entry into wholesale instead of retail may still spark off another series of protests, at least the numbers will stay limited.


But knowing the fearless entrepreneur that Mukesh Ambani is and his legendary Midas touch, chances of him bowing coyly out of modern retail is almost the imagination of an overstretched mind. And even as Ambani mulls his future course of action, the violent furor caused by his entry in the segment continues unabated. The latest to join the bandwagon is Reliance Retail’s home state, Maharashtra, with a consortium, consisting of FDI Watch, All India Kisan Sabha, Bhartiya Mazdoor Union and the Confederation of Indian Traders (CIT), organising a mass rally on October 10 in Mumbai. “Reliance Retail’s foray into food and grocery retail is dangerous for the economy and livelihood of over 12 million local vendors and traders across the country,” says Dharmendra Kumar, whose FDI Watch has been agitating vociferously against FDI in retail in the country, specifically Wal-Mart’s proposed India foray. “It’s not just Reliance Retail, we’ll block any big corporate getting into the retail sector till there is a proper national retail policy in place to protect the interests of local grocery stores, vendors and farmers,” he adds emphatically.

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Source : IIPM Editorial, 2008

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

Changing fortunes...

HEXAWARE : RUSI BRIJ
Changing fortunes...
When 55 out of your total 166 clients belong to the elite of Fortune 500/ Global 500 list, the company can only grim from ear to ear.

Here’s what Atul Nishar, Executive Chairman, Hexaware Technologies has to say: “The external demand environment continues to remain favourable. Though quarterly revenues have reduced marginally, but the outlook for the next year looks positive. Strong momentum in signing of new deals and an increased hiring represents excellent visibility for next year’s growth. Of the $100 millions new order book, almost $55 millions will be accrued in 2008.”

Rusi Brij, VC and CEO states similar. “In order to maximise client mining opportunities, the company has recently trimmed its client roster by 20 clients to defocus from marginal billing clients. Though this has marginal impact on Q4 revenues, the total value of the current pipeline exceeding $150 million is likely to get decided by early 2008,” he explains. Further, to add more value to its operations, Hexaware inaugurated its second development center in Saltillo, Mexico on October 31, 2007. Through its Mexico facilities, the IT major seeks to serve its clients in America and Canada who fall in the same time zone, albeit in a more cost effective manner. Hexaware might have been able to scale great heights in the past year and is going strong this year too, yet the only hurdle could be the sub-prime crisis plaguing a lot of clients.

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Source : IIPM Editorial, 2008

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

(K)NIIT(ing) success...

When all other players in the sector were looking toward exports, one player decided to focus on the Indian market. NIIT Technologies! Add to it, when all its counterparts are crying hoarse over rupee appreciation, NIIT Tech is, in fact, having a good time. You know why? Here is the reason – “Today over 50% of our business comes from Europe, with US at a little over 30% and the rest from Asia Pacific including India. Europe has been a strong growth driver for us. Europe is as large a market as the US, but a more difficult one to address,” a confident Arvind Thakur, CEO, NIIT Tech told 4Ps, B&M.

NIIT Technologies has been following a distinguished strategy of driving ‘Value from Focus’ in all its initiatives. FY07‘ marked significant milestones for NIIT Technologies through high momentum and improvements in turnover and profitability. The firm grew well above the Indian IT-BPO industry average and continued to rank among the top 20 IT-BPO exporters in the country.

“NIIT Technologies has managed to distinguish itself in the market through a strong verticalisation strategy, innovative product and services portfolio, a robust inorganic growth plan and strong people orientation” adds Arvind Thakur. The comversus Rs.35.1 crore on QoQ basis. In Q2, FY08 NIIT registered net profit of Rs.34.4 crore versus Rs.35.1 crore on QoQ basis. During the corresponding quarters, its revenue was at Rs.230 crore versus Rs.229.4 crore, QoQ.

“To the investor, I would say that we have a sound strategy which has worked well. We would monitor the business and competitive environment to fine tune the strategy and remain focused on the business fundamentals,” concludes Thakur, who has knitted immense wealth for his shareholders.

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Source : IIPM Editorial, 2008

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

It’s all about the “versions”!!!

Bill Gates is a very rich man today... and all because of one word: versions, says Dave Barry, American humourist

It’s a battle of wits out there between the global software giants. Such is the level of competition that the advent of Web applications from Google, adversely affect Commercial Off-The-Shelf (COTS) and growth of Gates’ bank account; conversely, new, successful versions of Microsoft software does the same to Google and Schmidt. Well, Dave Barry’s comment on the source of Bill Gates’ wealth is tongue-in-cheek but is not without merit. Although the comment was made about Microsoft software, with slight modification, it also describes Web software magnates such as Eric Schmidt, CEO of Google.

This column looks at the business of COTS and Web software from an individual and business users’ perspective. To make the comparison concrete, I will focus on two representative applications, Microsoft’s Outlook e-mail client and Exchange e-mail server and the Google Mail service (Gmail). But the pros and cons below are not by any means limited to Microsoft software or Google services; they are applicable to any COTS or Web software.

MS Outlook and Exchange Server: Pros & Cons

The first version of Microsoft’s Exchange server was officially released as version 4.0 in June 1996. The first version of the Outlook e-mail client (Outlook 97 or version 8.0) was released with Exchange server 5.5; though, Outlook, now known as Office Outlook, is at version 12 (Outlook 2007). What are the pros to this typical COTS application? The data, e-mail in this case, is under one’s own control. Data stored with the e-mail client and with the e-mail server are on one’s own computers. No one else – assuming that proper attention is given to security – can read, write, or tinker with the e-mail data. And because data is under one’s own control, one can choose to switch or migrate to different e-mail software. (This is not the simplest of tasks, but it is possible.)

The cons? The data is under one’s own control. No, this does not contradict the previous paragraph. Controlling one’s own data and software necessitates software installation, configuration, and update as well as the backup and restoration of data. Most users and many businesses have neither the expertise nor the time for this.

Other cons: Versions of Exchange and Outlook are released every 2-4 years. New versions offer new features and fix problems in prior versions. But even if one is happy with old software and would not otherwise upgrade to a new version, new versions sunset older versions and therefore compel an upgrade. (A sunset version means that it is no longer supported). The intended effect of sunset is to reduce Microsoft’s costs; a welcome side effect – at least to Microsoft -- is that users are compelled to buy a newer version.

Microsoft’s unspoken policy is that it actively supports the current and previous software versions or, in this case Outlook and Exchange versions 2003 and 2007 (a security update for the previous version, Outlook 2002, was last released in March 2006; the last security update for Outlook 2003 was in October 2007). If one has an older computer with adequate performance to run Windows 98 but wants to keep abreast of the latest security updates, then, because each new version of Windows requires more powerful hardware than the previous version, one is forced to buy new hardware in order to run the new operating system, and a newer version of Outlook to avoid newly discovered software security holes.

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Source : IIPM Editorial, 2008

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

Why Lowe is on a high

Surf Excel, Idea Cellular, ICICI’s Jeete Raho... R. Balakrishnan aka Balki, the boss at Lowe Lintas, shares his vision with 4Ps B&M
Here’s one marketing genius who has always believed in pushing the envelope. Small surprise then that the last month of this year saw R. Balakrishnan, the unassuming National Creative Director of Lowe being elevated to Chairman and Chief Creative Officer of the agency. Somehow it is difficult to see the title sit smugly on the T-shirt donned shoulders of this creative powerhouse, but then in an industry where the creative product’s centrality to the biz is becoming all-encompassing, Balki’s creative fireworks are set to create a trend.

You’ve created waves with Idea Cellular, Tata Tea and ICICI campaigns. Which are your personal favourites?
All the three communication campaigns that you mentioned were immensely satisfying. We believed that Indian customers are open to anything that is fresh, new, exciting and interesting, embracing the attractions of surprise and delight. We also thought it might be a good idea to go beyond the conventional route of product promise and enter the area of social messaging. I believe that today’s clients are way ahead of their ad agencies in terms of ideas and have no problem connecting with engaging concepts. They are an educated, enlightened and empowered lot, make no mistake!

But why the unconventional route?
My agenda was very clear: rock the boat, disturb status quo, make waves. I like to create and generate work that is uncomfortable and unconventional (remember Hoodi Baba?) and makes people sit up and take notice. Boredom and political correctness are the biggest enemies of advertising. The other thing is that contrary to one school of thought, ideas need not necessarily be clever, gimmicky or humorous to catch attention. They just need to be interesting by exploring different facets of human emotion.

What does 2008 look like?
I think we have taken advertising to the next level which means fresh challenges and opportunities. Clients will increasingly put pressure on us to raise the bar so, as an industry, we need to constantly push ourselves to do better. We need to explore within ourselves and come up with stuff that engages. And before I forget, 200% of this year was devoted to my first directional venture Cheeni Kum. It was an amazing experience because both creatively and box office wise, the movie struck target. I am in the process of writing my second film, starring Amitabh & Abhishek.

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)

Tastemaker Sessions encourage the customers

Diageo, a premium drinks company that boasts of prominent brands such as Smirnoff, Johnnie Walker, Baileys, Captain Morgan and Guinness, has endeavoured over time to involve the customer in each of its brands through its initiative, Smirnoff Experience, which has made waves for past half a decade in over 20 countries by creating truly out-of-the-world events. Smirnoff Tastemaker Sessions encourage the customers to learn the basics of bartending. Smirnoff Bar 21 is a mobile bar with signature cocktails from Smirnoff like Smirnoff Rasam & Thandai, specifically for Indian tastes. Smirnoff Bar 21 also brings various international and national artists, thereby providing an international club culture. Mentoring sessions are organised by Johnnie Walker, which give an opportunity to understand the subtleties of the Johnnie Walker blend. The company realises that consumers want to be equipped with knowledge around scotch to make informed purchases. Besides, Diageo has also done its bit for social causes. Joseph Luppino, Senior Director, State Government Relations, Diageo North America, categorically states “...we do not want the business of anyone under the legal drinking age. Period.”

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)

To attain such high levels of involvement

To attain such high levels of involvement in your brands is getting increasingly difficult and more complex with the sheer explosion of media channels and competitors. Your brand needs to constantly reinforce your core positioning in the eyes of the customer. An interesting example is HDFC, which has emerged a leader in the home-loan segment in India. As the home-loan business was blooming in the late 1990s, the challenge was to acquire and retain customers who often questioned the authenticity of services promised by the banks. HDFC decided upon a unique way to commence its activities way back in 1977 by offering ‘home’ grown solutions for its customers. Keki Mistry, MD, HDFC, while speaking exclusively to 4Ps B&M on HDFC’s customer-centric focus, stated, “They (the customers) want comfort from us that we have checked the property, since we know the credentials of most of the developers and whether the title is clear. We often tell people when to buy and when not to buy.” In this way, HDFC partnered with the customers and helped allay their key concerns, thereby securing their trust.

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)

See, touch, feel...

able to make it

What is the most critical trait that world famous brands like Google, Wal-Mart, Pepsi, Starbucks, Microsoft, Nestlé and Nike have in common? Perhaps the fact that almost anything they do (or don’t) makes headlines and trigger mass reaction. These companies do not always seek the publicity they get, whether for good or for bad. That is precisely why, although a number of firms around the world mistreat their employees for unfair gains, Wal-Mart gets the most flak for not giving free lunch hours in its organisation. Similarly, there would be a number of organisations that are miles away from confirming to quality standards and need to be severely penalised, but it’s Pepsi and Cadbury that are targettted en masse. On positive side, of course, is the fact that these brands enjoy mass adulation and appeal, which are highly enviable assets. It’s almost as if customers have been involved with these brands throughout their evolution. That’s why Coca-Cola faced huge protests over changing the taste of its cola in 1980s. Even though the new drink was researched by the company as having ‘better taste’, customers wanted their original Coke and nothing else. No wonder Coca-Cola is consistently on the top of the roster of the world’s leading brands.

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)

Dogs love Pedigree

Dogs love Pedigree and Pedigree in turn loves dogs…that’s exactly what they tried to prove when they decided to donate a percentage of the sales of each bag of Pedigree sold to benefit dog shelters. Not only did the programme help raise $750,000 but for the first time its sales went up to $1 million. Energiser batteries reminded people to change their smoke alarm batteries in a unique way; its ads said “Change your clock-Change your battery...” meaning change your smoke alarm batteries when you set clocks back from daylight savings time. National and local PR pitched in with community awareness programmes, with more than 5,800 fire departments participating, to increase adoption of this lifesaving – and battery selling idea.

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)

There was a time when capitalism meant making profits

Give and you will receive

There was a time when capitalism meant making profits, philanthropy be damned. But times, they are a changin’...and how!

“Make the kindest cut of all” proclaimed an advertisement of Pantene Pro-V. It was a campaign of a different kind. It was kicked off with Pantene’s celebrity spokeswomen Diane Lane getting her hair cut for donation on a TV show. The campaign sent the media into a frenzy since that day more than 700 million media impressions were generated for Pantene. This was Pantene’s way of telling consumers – that it cares. Cancer treatments cause women to lose all their hair. Through this exercise Pantene was able to contribute $1 million towards the EIF Women’s Cancer Research Fund.

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)

Meet the king of ‘creative’ magic...

PIYUSH PANDEY...Exec. Chairman & National Creative Director,O&M
Meet the king of ‘creative’ magic...
Illustrious, enticing, pioneering are words not enough to describe the legacy of this ad-man whose office shelves fall short of space to accommodate medals won over two decades – a genius named Piyush Pandey, NCD & Exec. Chairman, O&M India. From a ‘Trainee Account Executive’ to a ‘Chairman’, Pandey’s tale is one of determined pursuit for excellence. From ‘Mile sur mera tumhara’ to ‘Chal meri Luna’, from Fevicol’s revered knee-slappers to the emotive Cadbury’s campaigns, his contribution to O&M has been more than commendable. Quiz him on what really made the difference after he took charge as creative director circa 1994 and pat comes the reply, “We hired good people and gave them an opportunity of actualizing themselves...” Having said that, it’s also no cakewalk to copy his feats. The only Indian to have won a double Gold at Cannes and a triple Grand Prize at London International Awards, this leader knows precisely how to extract beautiful things out of different people and situations! And no one can beat him at that... no one!

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)

DR. E. SREEDHARAN... MD, Delhi Metro Rail

A ‘knight’ comes to a metro, on a metro, for a metro!
Dr. Sreedharan has a penchant of working against all odds, defying the commonly prevalent (mis)conceptions and setting unprecedented records. Be it the building of Konkan Railways, raising public bonds or taking up the challenge of the Delhi Metro Rail Project (presently his focus and passion), he has left critics dumbfounded on all occasions. A modest man & an extraordinary bureaucrat, he believes in the ‘window mirror philosophy’ and attributes his success to the team and its efforts. Though he insists that, “I do not have any special skills to get the best out of people...”, he has instilled a sense of corporate culture and commonplace values (which earned him 20 transfers in the early years of his career!) as the two key success factors for Delhi Metro Rail Corporation. Honoured with France’s ‘Knight of the Legion Honour’, his emphasis on commitment rather than workaholicism has ensured that he never missed even a single deadline in his entire career! (Phew!)


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)

The runner-ups...

With the ad rankings behind us now, it is time to focus on those print and electronic ads and billboards, which could not make it to our coveted rankings, nevertheless, they’ve created quite a stir among the ad-frat and consumers alike. Most debated, most discussed, appreciated or blasted, whatever they may be , we bring them all to you. Check out the hottest spots for this fortnight and decide for yourself...

CATEGORY : Billboard
BRAND : Bigadda.com
BASELINE : Let’s catch up
4Ps TAKE : Move over Orkut & Facebook – this time do social networking – the Indian way. Call it desi adda! Bigadda.com launched by Reliance ADAG (mind you it is in a beta testing format right now), is being positioned as a youth entertainment network that will build ‘communities’. For starters, the billboard is hugely attractive: two colourful hands all set to catch up with each other against a black. Targeted at youngsters, the USP is all about going desi & high-tech! Reliance has been smart enough to realise that with internet penetration increasing it’s a good way to increase ‘brandwidth’! The advertiser-driven business model’s power idea is to bond better with the youth – given that they have more purchasing power & a keen sense of consumption. The tagline is simple yet effective: Let’s catch up. The name itself ‘big adda’ is appealing and will grab eyeballs for sure. The right big idea for a ‘big adda’!

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)

BRAND : Aviva Little Master Plan

AGENCY : Publicis India
BASELINE : Kal par control
DESCRIPTION: Father-son together when son looks at an aircraft and says he wants to become a pilot. Next, father is grilling chicken & son says he wants to become a cook. Then, an actor. And then, a gardener! Next, the two are in a sports shop and the boy asks his dad whether he thinks he can break Sachin’s record. Enter Tendulkar, who says, “ Why not, main bhi aaoonga autograph lene. When you have secured your child’s future with Aviva’s Little Master Plan, you can let your child follow his heart khulke.”

4Ps TAKE: Aviva Life insurance seems to be flexing its muscles with the Master Blaster as its brand ambassador. Depicting a father-son relationship (bound to find good connect with Indians), the brand talks about the wisdom of sound financial planning. The communication is sweet and works like a dream! Targeting parents, who are concerned about the future of their children (who isn’t?), the power idea of the brand is freedom from tension once you have invested in this package. The branding – Little Master Plan – is a masterstroke, and is both aspirational and functional. In the highly competitive investments’ market, this one is definitely a cut above the rest – much like Tendulkar!

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)

Choose what you can!

‘Banner Advertising’ most prominently, has become the most developed channel on the internet today. But doubts persist considering even its effectiveness as Gaurav of G2 proclaims, “In India, banner advertisements are the most popular, which I think is not very effective. Newer forms of online advertising like ‘search engine optimisation’ and ‘social media optimisation’ are still to be explored in India. These are much effective than banner advertising.” Apart from this, ‘search marketing’ or Pay Per Click (PPC) is another model followed by companies. However, there are also chances of the clicks made on your ads being false, so that you end up paying even more – yet another flaw! Apart from this, Indian advertisers also follow simpler channels like ‘e-mail’ and ‘affiliate marketing’. Though e-mail marketing hasn’t worked wonders, affiliate marketing (where an advertiser pays the websites according to the response generated) has actually benefited companies. Well, whatever might be the business methodology adopted by online advertisers, the basic problems of low penetration, less awareness & dominance of the traditional media are factors stunting the growth of online advertisement industry in India.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Traditional media remain the darling

Then there are also companies from the travel, FMCG, consumer durables & automobile sectors that have thronged the internet. But here again, all smiles to the online advertising fans fade away with one truth, that even for these very sectors, traditional media remain the darling. Priya Raj, famous strategy and branding consultant elucidates, “For certain categories like FMCG or consumer durables, online alone may not play a very important role because the entire audience they want aren’t found online. So they have to use traditional media to reach out. So for them, the internet is just an addon medium...” To this Sridhar further adds, “Online advertisement is a great support medium. However, it is never used as stand alone medium for campaigns!” So there you are – the truth is that unless a miracle happens, for the present (and even in the near future), traditional media and insufficient internet penetration will force online advertising in India to remain just an... “add-on!”


For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Higgledy-piggledy nature of the industry

However, he primarily condemns the higgledy-piggledy nature of the industry for the debacle of online advertisement industry, “In India, about 70% of the dotcoms launched are never updated. Out of the rest 30%, only 5% websites are the ones which are regularly updated (and that too once in a week)!” So, while online portals like Naukri, 99acres and Jeevansathi together spend about Rs.10 crores in online advertisements (becoming one of the biggest online advertisers), there are others like eBay (Rs.9 crores), Monster.com & Jeevansaathi (Rs.6.5 crores each), Google (Rs.5.7 crores) and Yahoo (approx. Rs.3 crores), which also spend a mighty amount in advertisements, targeting their net-savvy users. Then there are IT giants, which sensibly spend heavily on online advertisements, as in their case, the target audiences are usually the prospective employees who flock the internet. However, it’s not just the IT businesses that anchor their hopes to online advertising. As a bird’s eye view of the sectoral spending on online advertisement in India reveals, apart from these technology companies and web portals, financial services companies surprisingly have started using the internet as an effective medium for advertisement.


For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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