Another cellular Armageddon... ...but will MTS find its place?

IIPM: An intriguing story of growth and envy

So, to make its presence felt, MTS is doing what most new operators are resorting to – offering freebies and tariff cuts. The philosophy is to entice new customers through freebies and make them experience its network so that they stick with it. “We are offering certain revolutionary pricing packages to the consumers like the minute millionaire scheme apart from the full talk time on every recharge above Rs.10 and all of these have been very well received in the market so far,” avers Lenny Musatov, CMO, SSTL. And the strategy seems to be working for them so far as the company was able to garner its first 1 million subscribers within just 10 months of its launch in September 2008. In fact, it went on to double its subscriber base to 2 million in another 3 months (by September 2009) making it grow by a whopping 16.8% on a month-on-month basis. The company believes that as it continues to add more circles, the growth story would get only better with time.

However, MTS realises that living up to this challenge would not be easy as the Indian market is quite diverse with each circle having its own set of challenges. For instance, the latest circle that MTS has added (the Delhi NCR) to its kitty is quite different in terms of usage pattern and penetration level than the circles that it was earlier operating in. “To address the needs of Delhi market we now have more high-end handsets and will be looking at getting more smartphones that offer facilities such as live TV” agrees Lenny.

But, as MTS offers wireless services based on the CDMA technology it’s able to offer better data speeds as opposed to its GSM peers. However, what’s important to note here is that CDMA still has not been able to pick up well in India. Both Reliance Communication (RCOM) and Tata Teleservices (TTSL) that had started off as CDMA services providers have now moved into GSM services as well. So, does MTS too feel the need to get on to the other side of the wall?

Not quite, on the contrary MTS seems quite content with its decision despite the fact that it’s the only operator in the country to rely on CDMA technology for growth. In fact, it’s only company in the world to have adopted the 1X advanced technology for CDMA (which is the 3G for CDMA operator). “It makes sense for MTS to concentrate on CDMA as unlike RCOM or TTSL it’s relatively new. It makes no sense for it get into GSM as of now. Further, as MTS would be touting more on the data usages therefore it would be better if it sticks to CDMA technology as data capabilities are always better on this platform,” reasons a telecom analyst.

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Source : IIPM Editorial, 2010.

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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Ad revenues@www?

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it happened in denmark about six months back; and repeated itself in UK, the world’s fourth largest economy. We are talking about Internet ad-spend overtaking TV ad-spend for the first time in UK. As per a report by PriceWaterhouseCoopers and Interactive Advertising Bureau (IAB), where on one hand, Internet advertising spend touched £1.75 billion (having grown by 4.6%), the ad-spend on TV fell by 16% to touch just £1.6 billion. This being great news for online advertisers, website hosts, social networking entities et al, the question is whether this phenomenon can be repeated in a developing economy like India. In this context, it is imperative to remember that online advertising in developed economies are a direct result of the high penetration, fast and cheap broadband, and the quick acceptance of new formats such as video adverts. But, despite Internet fast becoming a strong media vehicle in the country, today, we can only boast of 38.5 million Internet users – not enough to push advertisers to spend more on the Internet than on TV 30-second spots. Even the forecasts by KPMG testify the same.

Advertising over Internet during the year 2009 is expected to touch just Rs.8.4 billion, while the amount sidelined for TV ads is predicted to touch Rs.88.2 billion. So there is where the question comes in – how about a few years later? Certainly speaking, in terms of growth figures, Internet advertising looks more handsome, with a CAGR of 27.9% (between 2009-13) vis-à-vis TV ad-spend, which is projected to grow at just 13.5%, however in terms of absolute amount spent, advertisers will still maintain a higher focus on TV, with expected ad-spend during 2013 to be Rs.155.5 billion, than on the Internet where only Rs.21.4billion is expected to be spent by the advertisers. Translation: In India, TV and traditional media vehicles will reign longer!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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FESTIVAL FETISH

IIPM 3-year full-time Integrated (MBA BBA) Programme

You’ve seen the advertisements, you’ve seen the promotional campaigns, you’ve seen the marketing blast too – but is the festival season just about price discounts? Well, that too; but too much more! 4Ps B&M gives you this cover feature on how retailers and traders are the new kings and why auto manufacturers are not plumping on the price mistress this season to attract the vicarious customer!

You’ve seen the advertisements, you’ve seen the promotional campaigns, you’ve seen the marketing blast too – but is the festival season just about price discounts? Well, that too; but too much more! 4Ps B&M gives you this cover feature on how retailers and traders are the new kings and why auto manufacturers are not plumping on the price mistress this season to attract the vicarious customer!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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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Maruti Suzuki is still the most trusted brand in the Indian automotive industry. Pawan Chabra gives an account of its acts...

IIPM B School : King Khan, Bollywood Badshah and Quiz Wiz — that’s Shah Rukh Khan for you

One cannot deny the truth that the Indian consumer still trusts the brand Maruti Suzuki more than its counterparts in the country, when it comes to purchasing a new vehicle. In fact, many experts even claim that the positioning of the company in the late 1980s of being a “people’s car-maker” is still helping Maruti Suzuki to drive its sales ahead. But quiz Shashank Srivatava, CGM- Marketing, Maruti Suzuki, on how the company has positioned itself over the years and he says, “Before the economy opened up, it was one era for the Indian automotive industry and so for Maruti Suzuki. But after liberalisation in 1992, the scenario became altogether different for the industry.” However, of late, there has been a visibly dramatic change in the positioning of Maruti, and this has been a vital factor for its success. With the launch of products like Swift, A-star, SX4 and the recent entrant Ritz, the company has shown India and the world that it is even capable of treading down a more aggressive and technologically intensive path. What’s interesting though is the fact that despite this change in the past couple of years, the image of being a people’s car maker is sill associated with the brand. How have these two positioning quotients gelled together to make Maruti Suzuki a valuable brand in India is the question here.

The tag of a people’s car maker is generally considered as a “cheap car maker in India,” says Srivastava. Considering this, the company has rightfully moved away from the same to an extent, keeping in mind the tactics involved in market segmentation game. In fact, Maruti has done a lot, stitching and knitting to stay right atop the Indian automotive industry. From a time, when the consumer could not think beyond an Ambassador or a Fiat brand, the company launched a Maruti 800 which was an instant success in the country. The smooth ride continued with the launch of products like Zen and Esteem. But on the way, the Maruti logo was replaced by the Suzuki logo on the vehicle, “which clearly signified superior technology,” added Srivastava. Moreover, the company also altered its approach when it comes to reaching end-consumers. In the past one year, Maruti Suzuki, took the dotcom route in a big way to stay close to the consumer’s heart and ensured that the company remains the most valuable brand in the Indian automotive industry.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

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KS Oils Ltd.

IIPM conceptualized the grand final of Dare ‘10 — the most prestigious of international B-school student quizzes

Entry Price: Rs.53
Target Price: Rs.64
EPS: 6.3 (FY10E)
P/E: 8.4 (FY10E)
Time Duration: One year
Rationale: KS Oil’s focus on branded products has enabled it to maintain high margins. Further, the backward integration measures ensure raw material supply. The company is also constantly in the process of expanding its capacity, which is expected to drive its growth going ahead.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
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