Showing posts with label IIPM FACULTY. Show all posts
Showing posts with label IIPM FACULTY. Show all posts

Tuesday, July 08, 2008

A silver streak...

You’dA silver streak... definitely confuse it with a treasure island if you did not know it was Ravissant, a luxury goods store, displaying silverware designed by three of the world’s most distinguished designers – Simone Ten Hompel, Alistair McCallum and Michael Boy. The collection, aptly called ‘the Silver Lining’, shows off an array of magnificent treasures – a fusion of Indian, European and, at times, Japanese aesthetics in a unique blend of gilding metal with silver. Price on request.

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Source : IIPM Editorial, 2008

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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Monday, July 07, 2008

Touch down on the tarmac!


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The slow and steady sometime wins the race, but not all the time...

Siddhanta The slow and steady sometime wins the race, but not all the time...Sharma and Jeh Wadia really don’t have all that much in common. The latter is the scion of a business family that traces its roots back to almost 200 years, while Sharma can’t lay claim to that kind of hoary legacy. Yet, in moments of quiet introspection, or when they pick up a pink paper that announces the nth round of the war between Vijay Mallya and Naresh Goyal, the head honchos of Low Cost Carriers (LCCs) GoAir and SpiceJet must be sharing one common emotion: the unspoken agony of being left behind in the race; and the passionate dream of catching up with the big boys one day.

In the rapidly growing civil aviation industry in India, the big boys, without any doubt, are Vijay Mallya and Naresh Goyal. The former has leveraged a Richard Branson persona and loads of cash generated by his liquor empire, United Breweries, to make Kingfisher Airlines arguably the number one in the country. Mallya and Kingfisher catapulted from the margins to the numero uno slot by acquiring Air Deccan (OK, we won’t say acquiring if Mr. Gopinath of Deccan insists!). Naresh Goyal was even faster on the draw; he managed to acquire Air Sahara after a convoluted and controversial process and now straddles both the full fare (Jet) and LCC (Air Sahara now christened as Jet Lite) segment. Then there is the government owned behemoth – Indian - that is emerging bigger and stronger from the merger of Indian Airlines and Air India.

Do “The sector will be dominated by Kingfi sher/Deccan, Jet/Jet Lite & Air India/Indian…”the smaller players have even a ghost of a chance to be one up on the big boys? Analysts will remain analysts and revel in hedging their bets, as Binit Somaia, Regional Director, Centre for Asia Pacific Aviation (CAPA) does when he pontificates, prevaricates and then pronounces, “The aviation sector is facing a phase of consolidation which in short term will be dominated by Kingfisher/ Deccan, Jet Airways/Jet Lite and Air India/Indian…” But it is also a fact that in the highly competitive market of the last couple of years, yields have been so low that for new entrants to pursue market share would have meant bigger losses. Small surprise that in the face of the biggies acquiring more and more aircrafts in a bid to expand their services, GoAir prefers to maintain a low profile, with lesser numbers.

Given the bleeding operating costs that the industry as a whole faces, would Wadia’s approach be more sensible in the long run? Who knows, Jeh Wadia might actually end up having the last laugh. At the moment, he is dead pan and dead sure that the frenetic expansion pursued by the big boys like Mallya and Goyal gives him the luxury of sitting back and watching the two go at each other. He intends to cash in when the bruised leaders will inevitably give him a window of opportunity. Who said also-rans did not have chutzpah and confidence?!


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Source : IIPM Editorial, 2008

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

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Source : IIPM Editorial, 2008

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

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We have always created work that transcends the need for a brand ambassador and a certain line of work...


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Coming to some of the recent campaigns of the bank: The ad for HSBC Premier showed the importance of having a sound advisor behind the triumph of an individual. Ads for commercial banking put to the fore the bank’s skill of providing customised treatment in a very effortless, yet striking manner. One could see print campaigns that had pictorial comparison of people of different mindsets on a single platform. The bank also released various TVCs on the same lines. HSBC’s “Different People, Different Views” campaign was hugely successful and Ogilvy Action took the concept craftedby Contract Advertising ahead and aided it by innovative promotions (in multiplexes of metros).

The line of thought has been used in many ads to drive home the point which seems to have sunk in pretty nicely – thanks to the simplicity of the ideas in the ads. However, despite creating a name for itself, the bank still suffers from an image that is niche. Maybe, it’s time for a fresh idea that also gives it the mass advantage. What say?

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Source : IIPM Editorial, 2008

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

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Saturday, July 05, 2008

Banking glocally…


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Bertrand Russell, philosopher and logician from England had popularly said, “Do not fear to be eccentric in opinion, for every opinion now accepted was once eccentric”. Ever since its inception in 1865, Hongkong and Shanghai Banking Corporation (HSBC) has been advocating this philosophy not only to grow in the banking sector but also to establish its prominencewith respect to its communication. The burly bank acquired Mercantile Bank of India in 1959, commencing a journey that has gone through many milestones till now. The year 1987 witnessed first ATMs installed in the nation by HSBC. The strategy adopted by the bank globally, throughout the 1990s mirrored on “Managing for Value” that helped it to accrue earnings in both, established and emerging markets.

By the year 2002, HSBC had started bringing out commercials that voiced its presence across the globe with a tag-line: HSBC – The world’s local bank. “HSBC has managed to smartly juxtapose its communication (with global campaigns) to suit the Indian audience and I think that’s the hallmark of this global entity,” says Josy Paul, National Creative Director of JWT, HSBC’s global advertising agency.

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Source : IIPM Editorial, 2008

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

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Friday, July 04, 2008

Nerves of steel & the moolah within


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On the other hand, the steel giant, Lakshmi Narayan Mittal is also set on tapping potential in his motherland, India. Undoubtedly a late entrant to the fast-growing market, the Forbes billionaire’s company, Arcelor Mittal, announced this fortnight that they are planning to set up steel plants in Orissa and Jharkhand, with a capacity of 24 million tonnes per annum. With an investment estimated to be about $18 billion, the move will make Mittal the single largest FDI investor in India. Also, having recently paid the first instalment (Rs.5 billion) of the Rs.35 billion investment for a 49% stake in HPCL, Mittal will no longer just be called a steel czar, but will soon earn the title of an oil tycoon, too. Everything associated with Mittal is larger than life, be it his daughter’s wedding or his London house worth million dollars, so also this investment marks the largest FDI in refining sector. Investing in a deal where majors like BP walked out, Mittal has surely given light to the cold storage project of HPCL.

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Source : IIPM Editorial, 2008

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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There is no stopping these rock solid men...


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India Inc. is surely taking giant leaps ahead, with its associates growing globally and at the same time inviting their counterparts to tap opportunities in the homeland too. Either way, India is proving to be a red-hot destination. And those who made big-biz news this fortnight, either made it big overseas or have come back to their soil, betting big on the untapped potential. The first newsmaker making his claim to fame is businessman turned Member of Parliament who has transformed his company from a moderate performer to a star performer.

Naveen Jindal, the Executive Vice Chairman & Managing Director of Jindal Steel & Power Ltd. (JSPL) is all set to shell out $2.1 billion to develop one of the largest iron ore deposits – El Mutun in Bolivia. The plan is to eventually come up with steel making facilities in the region. Naveen’s far sightedness has made his, the first Indian company to make such an investment in the 40 billion tonne iron ore reserve. Leaving behind international investors including Arcelor Mittal,JSPL will have access to 50% of these rich reserves in this 40 year contract. “It’s the first overseas deal for our company. Strategically, it is very important to have control of iron ore resources which this deal provides us with. We will be able to contribute a lot to Bolivia and our company will benefit immensely,” Naveen Jindal told 4Ps B&M. Under the leadership of Jindal, JSPL besides taking a leap of 35% in net profits to Rs.2.03 billion (in first quarter of 2007) has also been included in the coveted list of Emerging Companies in year 2001 by The Economic Times.

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Source : IIPM Editorial, 2008

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

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Thursday, July 03, 2008

Chamber of secrets


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As Delhi prepares to jog in the Hutch Marathon this October, almost chameleon-like,Hutch will shed its bubbly pink hues to wear the glamorous red of Vodafone. Sources in Hutch have revealed to 4Ps B&M that the much-hyped brand swap would take place around the event, when the three pink ‘samosas’ of Hutch would disappear and Vodafone’s logo would gain prominence instead.

Not that this is the first time Hutch is changing colours. The last time was in November 2005 when Hutch went pink from orange in search for more vibrancy. The move was a roaring success, gaining Hutch renewed zeal in the Indian telecom sweepstake. Yet, there is a twist in the tale this time around. The Vodafone red would take on the vibrant red of market leader Airtel. While Vodafone still has to instill its brand aura among Indian consumers, Airtel enjoys a coveted headway in that very arena. But those in the know say that the possibility of a colour clutter can be ruled out. “Vodafone will have a different shade of red than Airtel and their formatting and font size would be a big differential,” asserts Brand analyst Harish Bijoor.

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Source : IIPM Editorial, 2008

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

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Consumers were not even used to processed vegetables at first, but we made Safal...


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But Thachil would do well to remember is that while he may be one of the pioneers in the probiotic curd segment, Mother Dairy still does not really wear the first mover’s robe. Amul with its probiotic icecream was the first to hit the probiotic market in India. And as the first healthy ice-cream marketer, Amul has already laid claim to the ice cream market with 37% market share. On the anvil are efforts from Amul to roll out probiotic lassi.

Coming back to curd, Nestlé, Mother Dairy and Dan one, all players are betting big on these bacteria, but unless this bacilli grabs a gigantic share of the Indian dining table, these giants will be left hurting and hungry for ROI...

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Source : IIPM Editorial, 2008

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

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Tuesday, July 01, 2008

Eggs are going to be more fun!


When IIPM comes to education, never compromise

It’s time to beat the breakfast blues! Get ready to gorge on omelettes and fried eggs – because the cost of eggs is probably going to come down. It’s also the chicken and egg syndrome; the poultry expects an increase in supply (vis-à-vis demand), so the price of chicken will also go down. According to the National Egg Coordination Committee, egg prices may come down to Rs.150 per 100 eggs during August- September (which is the time when supply will be at its peak). Currently, retail prices of eggs are around Rs.28 a dozen; this is quite an upward spiral compared to Rs.18-20 per dozen in the corresponding period last year. The average price of chicken has also risen to Rs.100 per kg – compared to Rs.70 per kg last year. Of course, one reason is that the bird flu was on in full swing around this time last year, and prices had dropped. Anyway, enjoy that omelette while you can!

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Source : IIPM Editorial, 2008

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

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More proof that India’s going all mobile


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According to a study by global research and analysis firm, Gartner, India will be the second-fastest growing country in the Asia-Pacific region – after China, of course! – in the sector of cellular services. It is being estimated that by 2011, 58% of Indians living in the rural and 95% of urban Indians will have mobile connections. And even though the mobile penetration in rural India is abysmally low (at 2%), this state of affairs actually offers a huge business opportunity for cellular service providers. One fallout of this has been cheap mobile handsets; there are black-and-white handsets that are available for less than even Rs.1,000. Overall, the telecom sector may grow by 18.4% between 2007 and 2011. In 2006, cellular services notched up revenues of $8.95 billion; by 2011, revenues could well be pegged around $25.61 billion. Gartner also says that cellular penetration will increase from 12.7% in 2006 to 38.6% by 2011. The other interesting finding that the study uncovered is that, in 2006, a whopping 84% of mobile users had prepaid connections; this trend is likely to grow overwhelmingly. It is being estimated that the prepaid segment will account for 93% of users by 2011. And of course, tariffs and call rates will further drop – and boost the number of users.

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Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
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Going all out on M&As


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The second Asia Financial Services M&A survey (that was conducted on 230 financial services executives in Asia) by PricewaterhouseCoopers says that India, along with China (but of course!), will account for 86% of mergers and acquisitions (M&As) over the next five years. In India, M&As’ growth has increased to 39% in 2007 from 36% in 2005. In China, on the other hand, in financial services, the growth is expected to come down from 52% in 2005 to 47% in 2007.

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Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
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Monday, June 30, 2008

The new box office HeroesBrad Pitt?


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No chance! George Clooney? Naah! Ashton Kutcher? Impossible! The way cartoons and animation movies are churning money, it won’t be long before top actors smashingly go...out of business!

Superman, SpiderMan Batman, Spiderman and now Hanuman. Yes, it seems to be a man’s world out there. A mention of the word ‘cartoon’ and probably these are the names that would spring up in everybody’s mind. As little children, we all used to wait for Sunday to watch ‘Spiderman, Spiderman… friendly neighbourhood Spiderman’ to do out of this world antics and mesmerise us. As young teenagers, we all read Archies and fancied going to the same Riverdale school where Archie and his cool gang used to study. Yash Chopra may rule Bollywood with his enthralling triangle love stories, but it’s Archie, Betty and Veronica, whose love triangle entertained us in our teenage years the most.

That’s the impact of animation in our lives. Probably some of our best, sweetest and most innocent memories are around animation. The world of animation is just unique. Just as love breaks all the barriers of language, religion, cast, creed and colour, similarly, animation is a universal language. It appeals to all people of almost all age groups all over the world. After all, from Timbuktoo to Tamil Nadu, every one laughs at the antics of Tom & Jerry. That’s the biggest advantage of making animated films. The world is your market, for cartoon characters face no language or culture barriers. They are watched with the same enthusiasm world over.

The Digital Miracle

The Walt Disney Company was fighting desperately to avoid a corporate takeover attempt in the 1980s. In fact, back then it was finding it so difficult to keep out of the red that it was considering abandoning the production of feature length animated films. Then they decided to give it one last shot and collaborated with Steven Spielberg to produce the animated feature film, “Who Framed Roger rabbit.” The film was a smash hit and suddenly, animation became the buzz word for success. What followed was a line of successful films from the Disney stable, like Beauty and the Beast, Aladdin, The Little Mermaid and, of course, the biggest hit of all, The Lion king. It surpassed the wildest dreams of the studio. Soon, everyone wanted to do an animated movie. All the big movie studios tried their hands with computer animated feature films. From Dreamworks to Century Fox to Paramount Pictures, everyone started making animated feature films. All did reasonably well, but none could match the charm of a Disney film.

However, Disney was so successful because of Steve Jobs and his Pixar Animation. He was the one who had mastered the art of 3-D animation, also known as CGI. In the past, films had been made using the 2-D animation technique, which relies on hand-drawn animation. Today, computer generated or CG animated feature films rule the roost, and Pixar was the first to produce the first completely computer-generated feature film, Toy Story. The movie was a phenomenal success so probably is ‘Pixar’, which is the true star responsible for making animation such a big draw both for children and adults.

With animation, a new life has been infused in films targeted at adults. It has made it possible to let you run your imagination in the wildest of directions. You dream of any situation and think of any idea, animation will help you to achieve it. It’s a digital miracle that made Tom Hanks shake hands with President John F. Kennedy in the film Forrest Gump (shot decades after Kennedy was assassinated). It was the computer imagery apart from Kate Winslet’s beauty, which made Titanic such a realistic and awesome film. It was also the computer, which helped in sending shivers down your spine as you watched hungry man-eating lions in The Ghost and the Darkness.

When Finding Nemo was released, Disney and Pixar kept their fingers crossed. They didn’t expect it to do well. The film went on to become the highest grosser in 2003, earning $340 million in the US alone and an excess of $800 million worldwide. All thanks to the magic of 3D animation. Those are the absolutely stunning visual effects that are fuelling the industry and helping it churn out one block-buster after another. Technology has developed a lot, and animation studios are using novel software tools to develop mind blowing effects.

India, the new hub

The Lion King, Finding Nemo, Lord of the Rings, all have got one thing in common – they all were made with Indian expertise. Ralph Bakshi helped in the making of Lord of the Rings. He also created a well labelled TV series named Mighty Mouse. Ergo, Indians have oodles of talent and apart from that, this talent is available at a very cheap price. The cost of making a movie like Spiderman is $100 million in US. If you make a full length animated movie in India, it costs $15-25 million. No wonder, all eyes in Hollywood are directed towards India. Hollywood companies are increasingly outsourcing cartoon characters and special effects in India. So, a part of the success of Stuart Little and the terror of The Mummy was created right here in India. Indian animation companies are charging very low, and are thus able to divert a lot of work from China, Korea, Taiwan & Philippines. In the past, we have been exporting Tea and making a name for ourselves in the world market. With the amount of work we’re doing in the animated films, this could perhaps be our next big export globally.

After Krrishall, we have everything that takes to make us the animation hub of the world. India has the world’s largest entertainment industry in terms of the number of films produced. The Indian Entertainment Industry is expected to grow at 18% per annum and reach over $10 billion by 2009. Animation and special effects are making their presence felt here, too. After all, Hum Tum and Krrish would not be the same without the touch of animation and visual effects. A whole lot of animation studios have mushroomed all over. The prominent ones being Toonz Animation (biggest in India), UTV Toons, Padmalays Telefilms (Zee’s animation arm), Mays Entertainment, Crest Communication, to name a few.

They all have very talented manpower and are considered some of the best animation houses in the world. It’s enough reason for the biggies like Sony, Walt Disney, Imax and Warner Brothers to sign up huge contracts with these Indian animation companies. More so because apart from the fact that our manpower is talented and low cost, another big advantage is the knowledge of English.

At the same time, Indian mythologies are a treasure house of stories, which appeal to all. In fact, those were the Japanese who were the first to realise the potential of Indian myths and made the Ramayan in the 1990s. It was Disney, which made the little Indian jungle boy ‘Mowgli’ popular the world over with the movie Jungle Book.

Indians are waking up to the fact that we have characters like the ten-headed Ravan, which have the potential to mesmerise not just Indians, but audiences the world over. So Toonz Animation has created Adventures of Hanuman and also Adventures of Tenali Raman, India’s first animated television series. We are no longer just servicing western movie studios, but are signing co-production deals too. We are not just low cost content providers to Hollywood. We have moved up the value chain by not just keeping our costs down, but our quality consistent and of very high standards.

We have talent and content, and Richard Branson has decided to make full use of it. He has teamed up with Deepak Chopra and Shekhar Kapoor to come out with Virgin Comics. The three titles – Devi, Snakewoman and The Sadhu are all inspired by Indian gods and goddesses. The world seems to be in love with Indian animation. From Ramayan, to Mahabharat, to Devi – we seem to have it all. The market seems ripe for the animation industry. Is it a surprise then that the market for comics and graphic novels worldwide is exploding? It grew by 44.7% in US and 50% in UK (Virgin statistics). Even the number of cartoon channels are increasing rapidly on TV. What’s most interesting is that the growth in both countries has come due to Asian comics.

Definitively, animation has become widely accepted and is the new innovation of the 21st century. Movie-goers have accepted computer generated characters in films. It would not be long before there would be fully animated films featuring virtual human actors! Not just viewers, even the Oscars have accepted it; and in 2001, they introduced a new category “Academy Award for Best Animated Feature.” That year, Shrek won the award. Animation has made a place for itself in our lives and is here to stay for a long long time.

So what’s common between Titanic, The Lord of the Rings, Pirates of the Caribbean, Harry Potter, Star Wars and Jurassic Park? They all grossed between $900 million to $1800 million in the box-office. They all have the computer to thank, which gave their movie such tremendous aura and awe inspiring look.

According to a survey, Mickey Mouse made $5.8 billion in 2003, while Harry Potter earned $2.8 billion, Nemo $2 billion and Spiderman $1.3 billion. That’s a cool sum for someone who has created with a ‘click-and-enter’ on the computer. These are the new favourites of the world. They are the new celebrities. What’s most interesting is that they come with no star-tantrums, no date problems and no scandle-problems! They work the way you want them to work. They are loved by the whole world and they always keep the cash registers jingling.

So move away Tom Cruise and Brad Pitt and make way for the new box-office heroes!

Copyright © : Rajita Chaudhuri and Planman Media.

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

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...The Marketing of a President


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Eye-popping celebrity branding, aggressive promotional schemes, astounding discount offers, unbelievable package deals... No, we’re not at all referring to some fabulous new product being introduced; rather, it’s all about...

They are gathering data – very detailed data on you. Things like, which car you drive, which magazines you read, are you married, do you have kids, how old are you, where do you live. They are not marketing whiz-kids collecting data to help their company launch a new soap, or plan a new marketing campaign for a refrigerator! They are the kids with Palm-tops and other gadgets knocking on people’s doors and gathering a whole lot of information, which is then fed into software. The software then helps the political parties figure out what issues would be of importance to a person with a particular profile. Accordingly, they can plan their political campaigns. Welcome to the modern way of tracking and monitoring potential voters. Yes, just like potential consumers, today political parties are keeping track of their potential voters and doing everything to woo them! The Presidential elections of USA have today become the biggest showcase of political marketing. The candidates are marketed in almost the same way as a shampoo or a face cream. The voters are pursued like consumers. The advertising campaigns are as glossy and slick. After all, we live in a fast food nation and our target is the Pepsi Generation. It’s about youth and fun and whatever your age, everyone is young. So if you want them to come and vote, you have to follow the advice of the marketing gurus who know this clientele very well.

The i-Pod crowd

Times have changed and the whole business of political campaigning has changed too. People are increasingly becoming more and more tech savvy. Internet has begun to play a very important role in framing people’s opinions. Thanks to the internet, information is flowing more freely – especially among the youth. They are becoming more and more aware of political issues. They are the ones who can tip the scales in your favour. Like any savvy marketer, political parties are realising the benefits of ‘catching-em-young’. After all, brand loyalties develop at an early stage and it’s easier to influence the younger lot. So in America, they started a campaign called “Rock the Vote”, which was targetted primarily at young voters, where pop-stars told the young generation to go out and vote.

It’s no more just long speeches that political candidates are using. They are doing much more to reach closer to the young generation. They now do phone polling, phone surveying and SMS text messaging to market their parties and themselves – things that the younger crowd finds cool and trendy.

Just as a brand needs to communicate the product benefits, the political candidate should be able to communicate something that the voters can understand and identify. He needs to work on a good sales pitch to increase his chances of winning. He needs to know what his target audience wants, and then he should sell that.

After all, Coca-Cola does not sell sugared water, Nike does not sell shoes and Starbucks does not sell coffee alone. What they all sell is an ‘image’, a ‘lifestyle’. Hutch does not sell ‘good connectivity’: It sells emotions. Emotions are the key word here. Our generation responds to emotions and a large part of the voters respond almost exclusively to the emotional appeal of the candidate. No wonder, when Rajiv Gandhi, a total novice, wept on his mother’s pyre, the whole nation wept and voted for him. He was the last superstar of Indian politics. He had the right image and evoked the right emotions.

If products need images to sell, then politicians need personalities to sell themselves. It all comes down to this basic fact, and Gallop surveys are a proof of the fact that time and again, in a Presidential race, it’s the personality factor that has played a critical role in deciding who would be the winning candidate. You need to master the art of knowing what is it that attracts the audience and reach out to them. A research has revealed that most of the people have no clue and no understanding of the candidate’s stand on issues. Most of them don’t understand the Presidential debates. It was said that people who voted for John Kerry in the 2004 elections believed in his health program and people who voted for Bush were concerned about the terror and national security and values.

On closer examination, it was found that hardly anyone understood the stand of both the candidates. They were all voting for the image that they liked. After all, all soaps clean germs, yet you pick up one and not the other – for no strong rational reason – but probably because you liked the model or the image shown in the commercial. The same was true for the Presidential elections too. Most don’t understand the rationale; and the few who do, don’t believe that political candidates would live up to their promises. So, if you have to win the voters over, you have to use your personality and evoke the right emotions to make them come out and vote for you.

The marketing battlefield

Elections are today nothing but marketing warfares! The mid-term election held in USA in November 2006 has been the bloodiest marketing battlefield. The media was splurged with ads of all kinds. According to Nielson Media Research, American TV viewers were exposed to around a million political ads between August and October this year. Compared to the last mid-term elections, there was a 31% increase in advertisements. Historically, America has always had a very low voter turn-out. As is the case everywhere, people don’t believe it’s important to vote, and don’t take it seriously. This time around, America went all out to reverse this trend. All possible marketing gimmicks were used to make the voter come out and cast his ballot.

If you have a five-year old at home, then you know how effective freebies are in selling a product. A packet of cornflakes assumes a whole new meaning if it comes with a free Spiderman projector. If free gifts attract a 5-year old, then they even attract a twenty five or a fifty-year old. So, in Florida, all those who voted, got free vaccination (which otherwise cost $25) against flu. “Vote and Vaccinate” worked quiet well. In Colorado, voters were given free rides from their homes to the polling booths in a limousine (A strech-limo rents at $500 a day!). If that were not enough, then in Arizona, Mark Osterloh had an irresistible trick to lure voters into polling booths. He offered a $1 million lottery. One lucky voter could change his fortunes!

A lot of gloss and glamour has been added to election campaigns nowadays. You now have Hollywood actresses featuring in advertisements and engaging in sexual innuendos – about the “first time” they voted – to Hollywood actors like Robert De Niro leaving messages on your answering machine to go out and vote for Hillary Clinton! During the 2004 Presidential elections, from music albums like Rock Against Bush to full length feature films like Farenheit 9/11, we saw them all being made to convince people to vote against Bush and his policies. If serious logic didn’t work, then humour was used to change people’s mind. Ergo, we had humourous ads like “Anyone but Bush” to humourous slogans on T-shirts proclaiming “No flip-flops in the White House” (a jab on John Kerry’s indecisiveness)

America leads the way. If these marketing gimmicks have worked in America, they would so in the rest of the world too. The fastest learner has been Venezuela’s Hugo Chavez, who has given his people free riders on a new metro line, free tickets to a rock concert, and even an unexpectedly large bonus – worth three times the monthly salary – just before the re-elections. His opponent, Manuel Rosales, in retaliation gave away free debit cards to more than two million poor Venezuelan households, allowing them to withdraw around 250 pounds a month. Freebies have some kind of a magical pull. The exiled child king of Bulgaria, Simeon Saxe-Coburg, used lottery power to win the elections. The lucky ones won cars, holiday packages and televisions. Not just this, he even had an exciting slogan. He promised to change the living standards radically in 800 days. He and his young team of economists – trained in the city of London – sure had learnt their marketing lessons well! To encourage voting, Simeon even made the nation indulge in tambola through mobile phones to win exciting prizes.

After all, all countries cannot be like Australia where voting is compulsory and everyone who doesn’t vote pays a $20 fine. No wonder they have a 95% voter turn-out. Till it isn’t made compulsory, we all need to open our marketing books to pull out some new tricks, to make people come & vote for us!

It’s all about money Today elections are a game of money. The ones with the deepest of pockets survive. In fact, it’s become the norm in America since 1976, that the candidate who has raised the most money by the end of the year preceding the election, has become his party’s nominee for President. Bush and Kerry raised a total of nearly half a billion dollars each for the 2004 Presidential elections. The battle between the Republicans and Democrats is fought primarily on TV, thus making it a very expensive warfare. During the mid-term polls held this year, some $2 billion were spent on the United States election campaign ads.

The fact is that it’s not enough being a good candidate, just as much as the fact that it’s not enough simply being a good product. You need to know your marketing extremely well to make it successful. The electoral marketing battle has to include all the tips and tricks strategically used while marketing products and services. From celebrity endorsements to malicious and attacking comparative marketing, direct mailers to internet campaigns, from emotional speeches to kissing underprivileged children, you need to do it all – and it doesn’t come cheap. That’s the price of democracy. The making of a President is actually nothing but the “Marketing of the President”.

Copyright © : Rajita Chaudhuri and Planman Media.

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

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Bollywood Marriages


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Is there more of Bollywood in marriages or more of marriages in Bollywood movies? That’s a tough one to answer. Today most Indian marriages are celebrated in Bollywood style – complete with the gloss and glamour of Bollywood movies. If marriages today look straight from a Bollywood flick, then movies and televisions serials are being made straight from real marriages.

The much-talked-about and one-of-its kind wedding of hotelier Vikram Chatwal and model Priya Sachdev has been turned into a television serial on Discovery Travel and Living channel named “The Great Indian Wedding”. The wedding boom also inspired Sony Television to launch a reality wedding show Kahin na Kahin Koi Hai. It was anchored by the gorgeous Bollywood actress Madhuri Dixit.

Not just television serials, a whole lot of movies have been inspired by weddings. Be it Bollywood or Hollywood this is one subject which never fails to attract attention anywhere in the world. The sheer joy, excitement, euphoria surrounding this occasion is unmatchable. Be it Hum Aapke Hai Kaun or Bride and Prejudice, Dilwale Dulhania Le Jayenge or Four Wedding and a Funeral – all have been box-office smash hits and the aura of a wedding was the heart of all these movies. Seems marriages do make both, Bollywood movies and the box office, rock!

As the girl and boy look deep into each others eyes and proclaim their love for each other a whole lot of business houses too get a twinkle in their eyes. For along with the wedding bells they can also hear their cash registers ringing. The marriage industry is a “profit guaranteed” industry. As long as people will fall in love, the industry will prosper.

So pull out your thinking caps and see how you can grab a portion of this pie, for a smart entrepreneur knows that marriages and business profits are made for each other.

Copyright © : Rajita Chaudhuri and Planman Media.

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

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Tuesday, June 24, 2008

Harish Parameswar, Managing Director of financial


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Harish Parameswar, Managing Director of financial advisory and asset management firm Lazard Asia, echoes, “I would say you’ve seen a lot of private equity and buy-out firms come up in India but venture capital is relatively tough if you’re at an early stage, unless you have some Indian investors who are from (Silicon) Valley. It’s relatively difficult to get early stage financing.” But early stage Venture Capital activity, on a lull since Y2K, has slowly begun trickling back. According to a data provided by Venture Intelligence, the value of early stage deals skyrocketed to $510 million in 2006, from a mere $103 million. In H1 2007, the total number of deals in early stage was 44 and amounted to an impressive $274 million. Several PE and Venture Capital firms are also in a process of raising money for the same, thanks to now favourable policies of the government (see above chart).

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Source : IIPM Editorial, 2008

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This Time The Investment


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And this time the investment is in start-ups and early stage companies. Nexus India Capital ($100 million), Atherstone Group ($75 million), GVFL – one of the oldest VC firms of India ($73.8 million) and many more have gathered funds from institutional investors which will be invested over a period of 3-5 years in ‘start-ups’ in sector ranging from IT to infrastructure. The VC party for Indian firms is on a roll, with little chances of the festivities ending anytime soon. It’s upto individual firms now to decide whether they want to pop the champagne or are happy nursing their desi drinks.

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IIPM Editorial, 2008

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Top 10 International Investors


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“Out of the $10 billion plus worth of PE deals announced in 2007, $6.2 billion are from the top 10 international investors. Most of these investments have gone into growth and late stage capital. The exception to it is in real estate sector where new ventures have got significant funding, but again these ventures have huge land banks and hence are from a different dimension,” C.G. Srividya, Partner, Corporate Advisory Services, Grant Thornton, India told 4Ps B&M.

“Even if one compares Venture Capital and PE activity in India and China, investors prefer China over India for early stage investment,” said Arun Natarajan, founder, Venture Intelligence, India. And it is so despite India receiving more funds by way of PE or Venture Capital, as compared to China. There is a clear dearth of seed and early stage investment capital in India with just 6.9% of capital going to that stage, as compared to 12.5% in China and 29% in US.

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