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!

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Source : IIPM Editorial, 2010.

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

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FESTIVAL FETISH

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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...

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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.

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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.
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And now its 2009…

Sitting tight at his work office in Chennai, C. K. Ranganathan (or CKR as he’s lovingly called by his friends and colleagues) is giving a fair bit of thought to the next big leap for his carefully nourished FMCG gambit CavinKare. In as much, the Rs.700 crore company is poised at a crucial inflection point in its history today. Having already dug its tentacles in regional markets and won the confidence of low-income consumers, CavinKare is now mulling its next step, which includes pan-Indian forays for some of its businesses and even bringing in some SEC A consumers within its fold. Says an enthusiastic CKR, “We are making efforts to be seen across categories. And you’ll see that in another decade, we’ll be an HUL in the making!” CKR ambition is for CavinKare to soon “become a Rs.5,000 crore group.”

It’s not just empty posturing. Peep into his detailed roadmap for achieving that target, and you realise that his ambition is neither inflated nor overrated. CKR believes that the key to CavinKare’s growth is the slew of brands in its kitty, which have a tenacious stranglehold in regional markets, spanning segments like shampoos (Chik, Meera, and Nyle), fairness cream (Fairever), deodorants and talcum powders (Spinz), masalas and ready mixes (Ruchi, Chinni’s), hair colours (Indica) and toilet cleaners (Tex, Topp Mopp). Not only that, he’s also taken his brands in select overseas markets, with a particularly strong presence in Nepal, Bangladesh and Sri Lanka. Today, says CKR, CavinKare boasts a market share of 24% in shampoos, while Fairever has a 7% share in the fairness cream segment. Going forward, it is this strength that CKR hopes to exploit in his growth pursuit. “Most Indian companies simply leverage one parent brand. That is the weakness of Indian companies. They are afraid to create more brands thinking it will cost big money. But look at us, we have dozens of brands and all are growing healthily and we are even able to fund their growth,” explains CKR, adding that the company is now raring to “grow inorganically” and while he refuses to take names yet, he promises we’ll hear about new acquisition plans soon enough.

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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