Thursday, May 27, 2010

The final battle?


Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri

The history of brand infringements is nothing new to global markets but is certainly becoming much more popular in the evolving Indian auto industry. Especially when one looks at the history of infringements in the Indian market, the recent cases are surely an eye-opener. The latest to join the bandwagon is Mahindra-Renault India. Hyundai Motors India has filed a case against latter stating that the MRPL is planning a car named Sandero alleging that the rival was trying to cash in on its popular brand Santro, as the names sound similar. However, Renault India’s CEO Nalin Mehta issued a statement saying, “We have filed a reply requesting the honourable court for removal of Mahindra Renault’s name as the defendant. Mahindra Renault does not have any ownership of the Sandero brand. MRPL has never used or promoted the brand.” In fact, the history of infringement goes beyond Hyundai and Mahindra Renault India as the most talked about case have been the Bajaj and TVS’ infringement case under which the former filed a case against TVS for using twin-spark plug technology in its much-popular brand, Flame. Though, the court didn’t stop TVS from producing Flame, but it barred TVS from using the same technology, which was then allowed at a later stage. Experts believe that with passing time, the industry will evolve and such cases will keep on happening in one manner or the other.

Pawan Chabra

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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Thursday, May 13, 2010

‘DOLING’ LOYALTY BONUS

National Rural Employment Guarantee Scheme

Without an iota of doubt, the National Rural Employment Guarantee Scheme (NREGS) is the single biggest and most ambitious marketing exercise ever launched by a political party in India; perhaps even bigger than the Garibi Hatao slogan and scheme of Indira Gandhi. Her daughter-in-law Sonia Gandhi is clearly the biggest beneficiary of this unique marketing exercise. When the NREGS (promising to provide employment to at least one member of a poor family in rural India) was launched in 2005, there were many sniggers about its intent and implementation. But the 2009 Lok Sabha elections clearly revealed that a brand can actually ‘buy’ consumer loyalty.

One of the reasons for the pan Indian upsurge in support for the Congress in recent times – despite anti-incumbency and many instances of poor governance – is the powerful message that the NREGS has sent to hundreds of millions of potential consumers (voters) across India. So what if a few instances of improper implementation of NREGS have come to light, consumers in Indian villages have realised that no other rival brand offers the value proposition that the Congress does through NREGS. The principal rival BJP has tried hard to resurrect a tired old slogan called Hindutva; but the voters decided that bread is certainly better than manufactured faith.

Do not underestimate the power of NREGS to ‘buy’ and sustain consumer loyalty. An impoverished family escaping starvation thanks to the scheme might well become a loyal consumer (of the scheme and therefore the Congress) for at least one entire generation. No wonder marketing strategists of India’s oldest political brand (of course, the Indian National Congress) look so cocky!

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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Friday, April 16, 2010

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.

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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Monday, March 22, 2010

Ad revenues@www?


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!
For Exclusive Footage by Sunday Indian Click Here

Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM exposes Career 360 and Mahesh Peri scam
IIPM - We will change your outlook : Career 360 and Mahesh Peri scam is exposed

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Tuesday, March 02, 2010

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.

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

Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!

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