CADBURY’S

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The real taste of life in Palampur, in true Cadbury ishtyle. That’s what the offerings comprise...

So what do women love more than jewellery? You guessed it right, chocolates, and when you talk of those sinful dark slabs, it’s only the blissfully ignorant who’d not automatically conjure up the Cadbury brand name. From sweetening childhood memories to festive celebrations to sending marriage invites, Dairy Milk, 5 Star, Perk and others have been helping people celebrate just about any occasion with kuch meetha ho jaaye. While initially the brand positioned itself on the lines of ‘a gift for someone you love’ in the Indian market – the last few years have seen a virtual change in positioning, with an impressive deck of ads, which had dollops of emotional connect. In a bid to tap the traditional sweetmeat market, the brand positioned itself as an alternative to Indian sweetmeats, and is reaping good rewards today. The effect of appointing the Big B as brand ambassador, starting January 2004, provided much required thrust and momentum to the product through FY 2006–07 as well. The case of infestation due to unhygienic storage conditions was erased from most memories and forgiven by many. Roping in the ‘perky’ Preity Zinta for portraying Perk as a common pastime also paid off! Thus, the jump from 57th to 53rd doesn’t surprise many. But despite another reason to rejoice, Cadbury cannot afford to sit easy on past laurels. The market is swarming with competition: Nestle’s Kit Kat, Munch, plus recent entry of global chocolate biggie - Hershey ...

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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On the global outlook and acceptance of Indian cinema:

MANAGEMENT GURU

I am not a soothsayer, a palm reader or a tarot card reader, and I have no concrete idea of the future! Going by what is happening right now is – yes, we do not possess a significant share of the global market as far as Indian movies (Hindi, Tamil, Telugu and other regional industries) are concerned. We aren’t a force to reckon with. You have to define the game that you are playing. In my opinion, there is nothing called as the next level. There’s a sea out there. As long as we are content remaining a small fish confined to a pond, it sounds fine. But if you wish to swim along with the sharks and the big boys, it’s a different ball game altogether. In that bigger context, stories would have to be more universally told in terms of scope, irrespective of whether the language remains Hindi, Bengali, or any of the other Indian regional languages. And at the end of the day, you can’t have simplistic solutions to such matters because the paradigm is so diverse!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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The West should be careful not to dismiss the Lebanese opposition out of hand...& should welcome proposals...

MANAGEMENT GURU
The West should also recognize that the constituencies of Hezbollah and its allied, largely Christian, Free Patriotic Movement, led by presidential contender Michel Aoun, which will be hit hardest by many of Siniora’s proposed economic and administrative reforms. All this might be seen as a predictable, conservative reaction to urgently needed reforms, if it were not for the poor track record of the Sunni economic establishment, which for many years adapted well enough to Syrian domination. Part of Hariri’s legacy was the award of quasi-monopolistic licences to cronies – for mobile telephones, for example – and the sale of government debt at highly profitable rates to local banks in which had a direct interest. So were the profligate borrow-and-spend policies and the use of public-sector hiring to co-opt political factions, both of which resulted in Lebanon’s massive debt problem.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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A gamble on (un)real estate...

IIPM PUBLICATION

Well, with rental rates in coastal regions estimated to rise by 5-10% (till 2012), according to Heltman Financials, Blackstone indeed seems to have struck gold with most Equity Office’s properties in these regions. Robert Haines, Analyst, CreditSights Inc. asserts, “These are irreplaceable assets in supply constrained areas of the country.” Could we say that the future is looking great?

Perhaps not. The main concern comes with expectations that real-estate rents will plateau out, and not pay rich expected dividends. The Builders’ Economic Council Survey 2006 showed the fall in enthusiasm among real-estate builders in US with only 35% positive responses in January 2007, as compared to 72% such responses in June 2005, when asked about the sector. Even Fortune (with propertyvaluation service Fiserv CSW) has estimated that growth for 2007 will be fl at as compared to a 7% appreciation in 2006. There are times when overt exuberance could cost you dear. Or should we say, make you sink like a (Black)stone!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Look what’s happened to those roses!

IIPM BEST MBA INSTITUTE

There was a time when the demand for roses used to shoot-up because a large event was coming up. Indian roses were in huge demand when UK was celebrating the 50th anniversary of the Queen ascending the throne. The Chinese New Year also gave a boost to the export market of roses sometimes. Now, every year, the demand for roses shoots-up, thanks to Valentine’s Day. Around 13 million rose stems were exported from Bangalore and Pune in 2002. For those who believed in “Love lasts forever, roses don’t,” a company called I. K. Silver has come out with roses that stay in bloom forever. Skilled artisans coat each rose with 24 carat gold, thus preserving the bloom’s loveliness. At Rs.1,000 a stem, this rose is for the not-sothrifty lovers. If this sounds steep, then consider this – in Singapore, cupid has struck so hard that people are paying $30 for roses with the name of their loved ones printed on the petals.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri(Renowned Management Guru and Economist) Initiative

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That’s music to ur ears!

IIPM PUBLICATION

To enter a sector considered by many to be archaic and dreaming to achieve a first mover’s advantage is by no means child’s play. Yes, it the common radio we are talking about here and when it comes to RadioCity, FM channels were no more a means of entertainment for just the lower class households! It entered this arena and pioneered the revolution, called by many as the FM revolution. And talking about the wave that’s swept across the nation, this radio station has actually managed to cash-in on the high-tide, and successfully!

Today, this musical service actually is ‘music to the ears’ for millions who look-out for quality music all the time. And after having made its mark by winning the prominent Promax BDA Radio Awards across seven categories, its appetite for success only seems to increase by the day! Indeed programs like ‘City Bajao, Car Le Jao’, or the most talked about ‘Musical-E-Azam’ that brought out interesting musical anecdotes from noted musical personalities, or even the fitness route taken via ‘40 Days to Fitness’ have only shown how diverse and rich are the offerings of this channel! Apurva Purohit, CEO of RadioCity lets the secret-cry out as, “RadioCity along with a couple of others have been there for about five years in the market and have established a unique brand or a unique proposition in the minds of the consumer.” She confidently adds, “We have tried it...and have experimented it...be it the process or the programming or the kind of music that we play and today we know what works and what doesn’t! Therefore, when we enter a new market, clearly that learning has and experience helps get it right in the first go itself.” Confidence, confidence all around! Should we say, ‘Veni, Vidi, Vici’?

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

European masterpieces in Indian kitchens

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Brand: Cata
Headline: European masterpieces in Indian kitchens
Baseline: Europe’s most innovative brand
Agency: Vermillion Communication

4ps Take: Lack of creativity is like akin to the Shakespearan concept of the ‘tragic flaw’ in advertising! And this ad is a classic case of just that! It is more of a product demonstration than a ‘masterpiece’ that it boldly claims to be. We can tag it as a non-consumer friendly visual which fails miserably to generate any kind of interest in the brand. The communication is a long history of the so-called remarkable tie-up between two not so famous brands (at least nobody in the Indian market is likely to be very clued in about them — even if they have spent a lifetime in Indian kitchens!). Unremarkable. Loads of tiny pictures inform us about the various options that are on offer but the communication falls short of impressing the target audience. Was anyone talking about a masterpiece here????

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

The list of top hundred global brands

IIPM PUBLICATION
A close observation of the list of top hundred global brands as released by BusinessWeek and Interbrand for 2006 brings forth the startling fact that none of the top three revenue earners (Exxon Mobil, Wal-Mart Stores & Royal Dutch Shell – the top three on the Fortune Global 500 list) ‘even’ appeared on the list of the most valuable brands! So has brand value got nothing to do with revenue earning? Well, looking at the way so many brands were first given a shape and name (in short a start-up identity), then invested heavily on, and finally sent packing to the undertaker, it makes perfect logic to believe that brands are no more than just a symbolic representation of – ‘we exist!’

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

A slowing US economy constitutes another major global risk

IIPM BEST MBA INSTITUTE
Of course, a slowing US economy constitutes another major global risk. At the root of America’s economic problems are measures adopted early in Bush’s first term. In particular, the administration pushed through a tax cut that largely failed to stimulate the economy, because it was designed to benefit mainly the wealthiest taxpayers. The burden of stimulation was placed on the Fed, which lowered interest rates to unprecedented levels. While cheap money had little impact on business investment, it fuelled a real estate bubble, which is now bursting and jeopardizing households that borrowed against rising home values to sustain consumption.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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...have now become the mantra for Indians whose eyes, till yesteryear, dreamt only of castles in the ‘air’!

IIPM PUBLICATION
Talk about a sector that will increase by 316% in value over just the next four years and we have some attention from all corporate honchos alike. Yes, it’s the ‘Realty’ we are talking of here and the projections are real for that matter! This sector is forecasted to become a $50 billion hot property by 2010 and is poised to touch an astounding $180 billion mark by 2020; and all this from the current valuation of a modest $12 billion.

The demand for office space, housing and all industrial and entrepreneurial ventures is at an all-time high, thus resulting in a demand supply disequilibrium. And if you thought that this is just a fad, you’re dead sure wrong! Even in the near future the situation is most unlikely to change and the only element that will witness a change (a high appreciation would be a better word) is the constantly escalating price. During the last decade, real-estate sector saw a robust compound annual growth rate (CAGR) of 15%. According to a research report released by Deutsche Bank, India will need as many as 10 million new housing units every year from the year 2030 – and that’s demand personified!

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Marsh PUTs off a POWERful deal...

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The company Marsh & McLennan Inc. has finally agreed to sell its Putnam Investment Unit to Power Corporation of Canada – a diversified management and holding company – for $3.9 billion. Power Corp. was among the three bidders for Putnam with Italian bank UniCredito Italiano SpA and Londonbased fund manager Amvescap Plc being the other two. The price that has been decided is the higher limit of most of the valuations made for company. The deal that isstill awaiting approvals from the employees (who hold shares in the company), shareholders of Putnam Mutual Fund and the other board members, is expected to be announced soon.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

Century Plywood, Sab Sahe, Mast Rahe

IIPM PUBLICATION

BRAND : Century Plywood
AGENCY : JWT
BASELINE : Century Plywood, Sab Sahe, Mast Rahe.

DESCRIPTION: In a busy street there is a huge traffic jam due to ‘men at work’ (road diggers trying to fit underground pipes). Acting smartly, one of the workers lays the plywood plank he was carrying on the trench and comfortably crosses it. But before he has a chance to pick up the plywood and resume his work, other people passing-by conveniently begin using the makeshift path one after the other. It starts raining and finally the man gets an opportunity to pick up the plywood, only to find three kids below the plank, taking shelter from the rain!

4Ps TAKE: The message? To showcase that Century Plywood can sustain the most extreme conditions (it is the strongest and water-resistant)! And the power idea lies in the execution of this ad. For a drab product like plywood, the TVC is decidedly humorous in an understated manner. The painstaking craftsmanship is eminently visible from the exasperated expressions of the worker. Minus the usual wisecracks, the ad scores high on its silent humour. The clinching benefit to the brand is the strength of the product and how during tough times also this plywood stays intact. The will to hold on, is strength, for sure, literally!

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Monojit Lahiri hits danger zone! Read on for blasts from both sides ofthe LoC...

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Never before in the history of communications business has such fierce, deadly competition exploded on ‘Adscape’! Man, it’s a war out there with agencies pulling out all stops to get a piece of the action (read: business/accounts/billing) in their determined agenda to storm ahead!

Time, talent, energy and big bucks are invested into making pitches for clients frequently with a ‘no obligation tag’ from the client side, which basically means that the moolah spent on the pitch will ‘not be’ reimbursed (partly or fully) by the powers-that-are. It has to be a ‘with the complements of the agency’ affair – take it or leave it, honey! In recent times there has been a lot of talk about it not being fair; about how there should least be a rejection fee for pitches; some reimbursement or compensation... So, what do the agency guys say? How do they feel about slogging their butts off for gratis? Is there any move to get united and force clients to pay up for pitches?

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

Hiring top ad agencies, hefty budgets, classy ads and slick marketing... state tourism boards are on an aggressive promotion spree!

IIPM PUBLICATION
“We Indians like to keep a Ganpati or a Jesus in our cars. But traveling in a private cab in Cochin a few months back, my eyes were drawn to a picture of a foreigner on the dash board. I asked and the driver’s tale flowed effortlessly, as one who had related to it many times before. Here’s what he said – ‘Once I ferried a lady from Holland in my car for 14 days across Kerala. We didn’t understand each other’s language, but somehow we managed to communicate effortlessly. When she left, she gave me a return gift; a car.’ I realized he was referring to the same ‘car’ in which we were travelling!”

Ask Swaroop B. P., Creative Director of Stark Communications (ad agency for Kerala Tourism Board) for more, and he seems like a mine of awe-inspiring stories. Kerala has chosen to borrow some such personal experiences of travelers to colour their recent campaigns. The other State Tourism Boards aren’t far behind either.

If Ministry of Tourism’s much celebrated ‘Incredible India’ campaign has put India among the top 5 destinations of the world, then State Tourism Boards are independently trying every trick in the book to promote their states domestically and internationally – and how! Top ad agencies of the country, armed with hefty budgets, powering campaigns (that no longer reek of babudom) are entering the fray with all cylinders firing. It is ‘war’ between states in their effort to market their individual wares to domestic and international travellers.

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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