CONFUSED CONSUMERS!

And now for a very different re-positioning song – one that has left many customers confused. Yes, we are referring to Naresh Goyal’s third airline brand, Jet Konnect.

The slowdown-induced tightening of purse strings possibly hit the air travel sector the worst. The domestic market shrunk significantly and there was a significant shift of air travellers from full service carriers to low cost airlines. Given the changing market dynamics, and to cash in on consumer preference for low cost airlines – Jet Airways’ Naresh Goyal launched a third brand Jet Konnect, which became the second low cost brand from Jet’s stable (after JetLite). Jet Konnect is flying on specific routes to replace many of the Jet Airways (full-service) flights. Now the obvious question that pops up, why a third brand? Why not simply replace the Jet Airways flights by its low cost carrier JetLite? As K. J. Singh, Co-Founder and CEO, Evolve Brands says, “It makes more sense to fly with a single-brand rather than having two separate brands catering similar facilities. JetLite and Jet Konnect have nothing different apart from the routes.” Well Goyal thought of that option first but had to drop it due to the operational and regulatory hiccups, which would have complicated and in turn delayed the shift in the strategy. Thus, a third brand was a quick and easily deployable solution to battle the tough economic times. A smart business strategy!

So what went wrong? Well, Goyal failed to support its strategy with a right marketing plan! As a result, till date, the differentiation between Jet Konnect and JetLite in consumer mind is fuzzy. So much so that many fliers aren’t even aware that Jet Konnect is a separate airline. Many travellers believe that Jet Konnect is yet another scheme launched by JetLite. Binit Somaia, Regional Director, Centre for Asia Pacific Aviation explains, “The challenges which Jet faces is the potential for consumer confusion between the three brands, as well as the fact that Jet Airways and Jet Konnect fall under the same management.”

Ratan Lal Bhagat

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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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Life Plan ka irada

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After launching a series of comunication on Child Plans and Pension Plans, Max New York Life Insurance, under its refreshed positioning, ‘Karo Zyada Ka Irada’, has recently launched an ad campaign to promote its Life Plans. The communication revolves around the idea that even a short separation from our loved onesmakes us paranoid. But what if they were gone forever?

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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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The Sunday Indian :- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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The movers...

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l Real Image Media Technologies recently announced the appointment of Arvind Ranganathan, currently Head of Strategy & Business Implementation, as its CEO. With a focus on the expanding operations and the potential transition to a Public company, Arvind has been chosen to spearhead the dynamic and aggressive growth phase of the company and and to lead the company through organic and inorganic growth.

l BIG 92.7 FM (owned by Reliance ADAG) has roped in Ram Kambhoj as its Director-Rural Actication in order to strenghten its rural activation offerings. The task ahead for Raj will be to optimise business opportunities available in the tier II and III cities tapping the 193 districts that BIG FM covers while touching almost 200 million Indians across the country. In another development, BIG 92.7 FM has also brought on board Sailesh Bijlani as its Cluster Head – Maharashtra & Goa.

l M. K. Anand, Business Head, Zoom has called it a day at the channel and is currently serving his notice period. The buzz is that Anand is joining UTV Global Broadcasting as its CEO.

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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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“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
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What is One plus One really equal to?

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That brings me to another version of this 1+1 mystery. Over the last few years, just before the recession hit, ‘valuation’ was in vogue! Every new start up or even existing organisations started talking ‘Valuation’. Rather than creating value for the customer, valuation became the buzzword. But, how do valuations shoot up like this? I really did not understand this new game. This was, when someone mentioned ‘Sum of parts is greater than the Whole’. Now what does this mean?

And then, after a long phase of close to depression, I saw the picture. The ‘Bonding Energy’ should be contributed willingly by constituent particles only, towards efficiently aggregating together in the collective selfishness of “a) We build greater value for the customer together and/or b) We operate in a manner that our operations gain from each other a) To create value for the customers & b) To create return on investment for the owners (in that order)”. That is the key towards ‘Whole is greater than the Sum of Parts’!

No wonder when businesses get reduced to being seen as distinct particles, with no ‘Bonding Energy’, when they have no reason for being together in the first place, ‘Sum of parts will be higher than the Whole’. It is this irony, driven by ‘Valuation’ rather than ‘Value Creation’, compounded by greed and short term results that lead to businesses being managed as MF portfolios rather than with an approach of ‘organisation building’ and ‘value creation for the customer’.

That is one flaw that the famous BCG matrix can lead to. Businesses are seen as delinked, independent entities in this approach, without looking at the ‘synergistic’ or ‘complimentary’ roles they may actually be playing in the ‘dance’. This race for ‘Valuation’ rather than ‘Value Creation for Customer’ in some cases gets particularly pronounced in the ‘portfolio’ treatment and approach followed by some PEs. However, it is an area of caution only. Airtel and Max are cases where PE support, without losing track of customer value creation led to extremely positive results. Quick valuations and selling off of parts of organisations like cattle or treating multiple organisations as merely elements of a portfolio, can be obstacles in organisation building or in creating value for the customer or even for the owners. This can be dangerous at any stage in an organisation’s development, but sometimes quick valuations expected in early growth stage can ring a premature death knell for your business... delivering a ‘still born’.

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

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