IN THE FAST LANE

Last year’s slowdown was a blessing in disguise for the public sector behemoth SBI, forcing it to become truly competitive. And the bank has only moved ahead since then. Avneesh Singh finds out how

Financial inclusion may be a buzzword for India Inc. but when it comes to groundwork, a majority of them falter. But not this “Banker to Every Indian” for whom ‘inclusion’ is about carpet bombing the Indian geography with its presence, a strategy that has seen it (leave aside the associate banks) reach over 12,450 branches and 16,584 ATMs across India. In fact, in the next two years, the drive is barbarically brobdingnagian (if one could use such a term) for SBI wishes to now get 1,00,000 un-banked villages in its connectivity map! What’s more? At a time when trust was witnessing a free fall, this bank everyday attracted more than `1.7 billion average deposits (during FY2010). While deposits were up by `620 billion (a 8.36% yoy growth – from `7.42 trillion in March 2009 to `8.04 trillion in March 2010), gross advances too were up by `929.40 billion registering a growth of 16.94% from `5.48 trillion in March 31, 2009 to `6.41 trillion in March 31, 2010.

Not surprisingly, the net interest income rose by a significant 13.41% to `236.71 billion in FY 2010 (up from `208.73 billion in FY 2009). And the reason for all this is interestingly in one area. When banks were shunning retail customers, SBI took the lead in lending to the ‘shunned class’ and consequently became the single largest retail lender in India (education loan up by 34.61%, auto loan up by 45.44% and housing loan portfolio up by 31.69%). Even in corporate lending, SBI diversified its loans across segments, thereby minimising the probability of loss. In fact, the large corporate loans reported a significant jump of 18.51% during the last fiscal. But that does not mean that it has completely ignored the bottom of the pyramid, which for the fact makes over 90% of India’s total population. As part of its microfinance programme SBI has credit linked more than 1.71 million self help groups across India with cumulative credit of `115.62 billion.

When asked about the secret behind this stellar performance, S. K. Bhattacharya, MD, SBI told B&E: “performing well has become a habbit for employees at SBI. No doubt, top management devices strategies and policies, but the real business takes at the branch level. So, it’s the employees of the bank who should be credited for this performance.” Further, thanks to a resurgent focus on maintaining a cost effective operating architecture, the bank has successfully brought down the average cost of deposits by 50 basis points to 5.80% and kept its net NPA (non performing assets) at 1.72% (of gross assets) as on March 31, 2010. In fact, the ratio of high cost bulk deposits to total domestic deposits too has come down from 10.74% in March 31, 2009 to 1.79% in March 31, 2010.

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Source : IIPM Editorial, 2012.

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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BUSINESS BEYOND PROFITS!

As the world emerges from global recession, businesses should focus on restoring their profitability. But only short-sighted businesses do so at the expense of the pursuit of a broader purpose, writes Amit Bhatia, scion of the l. N. Mittal group, founder of Mittal Champions Trust and Swordfish Investments

The past few years have seen growth rates drop everywhere – even in emerging economies like India and China. That process has not only affected nations and businesses but also lives of ordinary people. As the focus of governments, businesses and the ordinary man turned to survival, many personal aspirations were put on hold and major infrastructure projects, such as the construction of new roads and hospitals were shelved or not built as quickly as they might otherwise have been.

As the world starts to readjust to the new normal of a period of prolonged economic austerity, it might be tempting for companies to reign in programmes that make no discernable contribution to the bottom line as they come under pressure from investors to increase profitability. But now is exactly the time when companies must stay true to the ambitions they laid out in more prosperous times and remember that, over the long term, companies with a purpose beyond profitability will enjoy the greatest success.

There are many who would argue that by simply producing its product, being profitable and providing jobs, a business is already making a substantial contribution to an economy. But over the years the accepted view has become more sophisticated. Business, it is often argued, is in a unique position to help make a broader contribution. As part of its license to operate, it should act responsibly at all times and seek to actively engage with the communities in which it is present. This, advocates of corporate responsibility claim, will generate long-term and sustainable advantages for the business in terms of growth and profitability.

I agree. Of course profitability is crucial. A business has no future if it cannot be profitable, something that will have severe consequences for all stakeholders. But equally businesses must look beyond profit, and also pay attention to the quality of life, in the broadest sense, of the communities in which they work.

I have actually always been very impressed by the emphasis leading Indian companies place on Corporate Social Responsibility. The winner of the Corporate Responsibility Award at the Financial Times/ArcelorMittal inaugural Boldness in Business Awards in 2008 was Selco, an Indian social enterprise that provides sustainable energy solutions and services to under-served households and businesses.

There are many examples of leading Indian companies who make a healthy profit, but utilise a proportion of this profit to make a meaningful contribution where they believe they can have a positive impact such as education and health.

Read more......

Source : IIPM Editorial, 2012.

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

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
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Professor Arindam Chaudhuri - A Man For The Society....
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Tale of a tri-city

Chandigarh is fast moving beyond the shadow of its legacy of being a sleepy town to a hot hub of realty opportunities, says nirupama dutt

No longer can Chandigarh be dismissed as a sleepy little town on the Shivalik foothills, which was described by a cynical writer as the abode of green bushes and white beards. Up North, it is the fastest growing city and as predictions go it is going to be India’s richest city in three decades; with Delhi following close on its heels. This is a great change for a city that showed very slow growth in the first fifty years of existence. Even the tiniest piece of land of around 125 square meters is over a couple of crores. Yet it has takers aplenty; including landlords, industrialists, NRIs, doctors, lawyers and bureaucrats.

Its great location in the Shivalik foothills, proximity to Delhi and its growth as an IT city; all work to Chandigarh’s advantage. The Chandigarh Technology Park has attracted many multi-nationals like Infosys, Wipro & Convergys. Quark is also planning to establishing a ‘Quark city’ in Mohali. Earlier, many professionals had to shift to other places in search of high employment. Due to advancements in IT sector, the city has become a virtual magnet for professionals. It has also helped improve the economy and quality of life in the city. Now the city has its share of malls and multiplexes with builders moving in to make the most of the changing mood.

Chandigarh has limited land; so adjoining areas like Mohali, Panchkula, Zirakpur and Kharar are developing very fast. Ritu Singal, MD, Raglan Infrastructure Limited, says: Chandigarh’s periphery is the area of the future as property has now gone out of the reach of common man. So over the next few years, Derabassi, Kharar and Zirakpur would be to Chandigarh what Gurgaon is to Delhi now.”

Besides the big fish, a large number of local builders have made their fortunes in real estate. The builders are now selling the concept of luxurious apartments and penthouses. The rates of property in these areas adjoining Chandigarh are still affordable and thus property developers are making a beeline to make investments there. They are expected to make huge returns on these investments in the near future with the considerable increase in commercial and infrastructure development activities taking place. In main city, owners are converting their spaces into one, two and three bedroom apartments and giving them out on lease or rent. Also, floors are being refurbished into small shops and retail outlets to meet the demand for commercial property. Shravan Gupta, Executive VC and MD, Emaar MGF, says: “Punjab is a progressive state and offers endless opportunities of development aligning with our vision of ‘Creating a new India’.”

Ludhiana is another classic case of the big boom in property and Ashok Malhotra CMD AMGECO (Ashok Malhotra Group of Companies) says: “The boom was due for a long time. In winters, the hosiery market had done great business and the profits were high.” AMGECO has come up with the first IT Park in Ludhiana and is moving onto group housing colonies on the highway.

Read more.....

Source : IIPM Editorial, 2012.

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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Entertainment k liye kuch bhi karega!!

Has the Big ‘E’ overwhelmed the Big ‘S’ in today’s Adville? 4Ps B&M’s Consulting Editor Monojit Lahiri probes this tricky terrain

“I laugh so that I may not weep, Boss,” exclaimed my learned friend the other evening at a party. My quizzical expression inspired him to elaborate. “What’s with you ad guys, yaar? Why are you so parasitically – in most cases – in Bollywood’s vice-grip, crazily anxious to only entertain your customers in the hope of making a sale? It’s so dumb, unimaginative and indicative of a total bankruptcy of ideas!” Before I could react, another friend (of the marketing kind) very sweetly chipped in “Yup, he’s spot-on! Entertain by all means but don’t let that drive your ads for chrissake! You have an agenda, right – and it’s not entertaining but selling stuff, powering the purchase intent. If I want entertainment, I’ll see those mindless Rohit Shetty-Sajid Khan crap, not ads, okay? Get real and focused, guys!”

Having successfully ruined my mood, these two killjoys got busy having a blast! However, their words set me thinking and soon I got chatting with some players from Adland. Were these flamboyant accusations true?

First up was Creative Director (at JWT Delhi) Arnab Biswas who summarily dismissed these claims with the arrogance of a successful and hi-flying 30-year-old who’s worked with some of the best and biggest ad-shops, clients and brands. “Tell the bozos, that our job in these scary and competitive times is to – first – grab attention through surprise and delight … not bore the pants off the viewer with a zzzzzz … recitation of facts and figures! It’s a fast-moving and promiscuous world and the Remote is a killer gadget. The challenge is to keep his/her hands off that deadly object! What better solution than sell through the entertainment route?” says Biswas. Agrees Kaushik Sen, Creative Director at Impact Marketing Services, as he tells 4Ps B&M, “All sane communication people know that the ‘Big E’ is the coolest hotline to a mass-connect. The great leveler that cuts across every social strata and literacy barrier. The age of being propah’ and politically correct is over. Films, songs, books, catchphrases, news, events, happenings… we are forever contexting and borrowing from real life, packaging them in an entertaining manner and letting them loose on our prospective consumers. It’s exciting, fun … and it works. Trust me.”

Really? Questions blitzed the brain! Wasn’t entertainment meant to be a creative route, a means to an end, not the end itself? Are prizes, metals and gongs at hi-profile national and global ad events the cause of this distracting by-pass? Has today’s advertising become too self-absorbed, drawing too much attention on itself and too little in closing the deal? Has it become a hi-wire act with the glam, media-hyped creative biggies – not clients or market forces – playing judge, jury and star attraction? Has the ‘S’ word – sell – become too boring, passé, unfashionable and déclassé, and hence the search for something new, shiny, sexy? I posed some of these queries to veteran Adman Nikhil Nehru (ex head-honcho, JWT North and McCann, North) a huge respected name across the 70s, 80s and 90s. He was cool, objective and brought both gravitas and a sober perspective to this issue. “Let’s face it. There has always been one section of ad guys – arty, over-smart, fake, desperately anxious to make an impression at any part – who made it their prime business to enthrall their clients through entertainment. On cue, they got their wows and frequently the business. Problem is: what next? This is a short-term hit because it’s not driven by solid strategy. I’ve always believed that if the hero of your ad is not the product but the treatment (gimmick) you are in trouble, because you have no solid follow-up. Worse, you committed the cardinal sin of creating communication where the ad is remembered – but the product forgotten!” Nehru tells 4Ps B&M.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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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Management Guru Arindam Chaudhuri
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Turning your business outside in

Managers who have an extra-industry view bring to their business ‘New to industry’ ideas, innovative solutions to old industry problems, and overtime, altogether new strategic directions

It is a common mantra that innovation is the only true source of competitive advantage, and that most new thinking comes from outside one’s own industry. But if by that we mean a vibrant research & development (R&D) pipeline or the much vaunted ‘blue ocean’ strategy, the pickings may be slim. Best-selling products and breakthrough innovations that take us into uncontested waters are rare.

Real ‘innovation’ means acquiring a critical, thought-provoking perspective on the fundamentals of your business model, market practices and core processes. Such a detailed analysis of your organisation can lead to rich possibilities which can be turned into performance enhancing advantage. Put it to managers that an external perspective is essential to the success of their business, they will always concur. Ask them how much time and energy they invest in creating that ‘outside in’ view and the answer is usually ‘not enough’.

What does this tell us other than that we sometimes say one thing and do another? Our research at Cranfield demonstrates that businesses need to have clear answers to two key questions: how much of an external view is needed, and what are the best methods of creating this perspective? Once we have the answers, deciding who in the business should be offered what development opportunity naturally follows. Consider the question, what breadth of external perspective is needed? For managers, it is certainly important to distinguish between three levels: ‘business’, ‘industry’, and ‘extra-industry’.

A business level perspective takes us beyond the functional boundaries of many managerial roles into the world of the customer, the market and the financial issues facing our business; in other words, towards an understanding of the underlying drivers of the business. The result? Better quality operational decision-making enhanced functional core competence, and improved contribution to business strategy. These are all possible, once managers have a business level perspective.

In contrast, an industry level perspective demands that you consider the impact of factors beyond the boundaries of your own business, taking us towards a wider knowledge that extends the range of possible business solutions and performance levels. The prize is ‘new to organisation’ ideas certainly leading to increased business performance together with greater ‘within sector’ competitive advantage.

At a broader level still, the extra-industry perspective contains the potential to create a sophisticated strategic understanding of the business life cycle: ‘what leads to what’ in the business environment; and a leadership mindset that may change the ‘rules of the game’. Managers who have an extra industry view bring to their business ‘new to industry’ ideas, innovative solutions to old industry problems, and over time, altogether new strategic directions.

As one would expect, each of these levels of external perspective requires different development approaches or processes. All of them demand managerial time and commitment. Developing a perspective beyond functional managerial boundaries requires initiatives such as cross-functional career moves, cross-functional networking, and company specific (customised) development programme. Creating an industry level perspective is best achieved through such opportunities as: inter-company career moves; exposure to the supply chain and other key industry components; attending industry forums and networks or benchmarking industry competitors.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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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Management Guru Arindam Chaudhuri
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“Boss, kuch solid creative banao jo hila de! Ghanti baja de!”

What agency do you choose as the young, infirm, impressionable ad executive? Would you fall for the compelling promise of magic at the big brand ad agencies? Or would you take the plunge for the lucre love at the smaller sole proprietorships? I was young once – and I was courageous too. Here’s my story – but take your own decisions.

The big, burly ‘client’, chewing his favourite brand of pan masala (with three rings on his right hand and four on his left, along with various coloured strings gracing his wrist) dressed in a safari suit of dazzling maroon, seated on a massive, filmy, throne-like chair in a room filled with pictures of Gods, Goddesses, his late father, stared hard at the young, fresh-faced Account Executive from the agency they had hired. From time to time, the client sighed and nodded his head – left to right and back – indicating cosmic sorrow. Eventually, wisdom descended from those pan-masala-stained teeth. “Boss, kuch jama nahin! Kuch solid creative banao, jo hila de, ghanti baja de. Yeh sab to ghatiya, nonsense, rubbish, bakwas!!” With these encouraging gems, he flung the eight ads (which the agency had created in two hours, flat) towards the young man and began to speak again. “Beta, don’t take it personally. I like you very much and love your English-speaking and gyan on advertising, lekin kya hai, bijness to bijness hota hai, hai naa? Your boss is my very good yaar from college days. Kamaal ka tuning hai, to mana nahin kar sakta, hai naa? But you must brush up on creativity. Waise ek phone me ghumaoon to line lag jayegi Adwalon ki and you know it, lekin mind it, mein aisa nahin karna chahta hoon. Navar!” He paused for breath and another intake of pan masala. “My 17-year-old daughter Dimple can do much better. Believe nahin karoge, by gaad, she’s too creative! Angrezi poetry likhti hai, painting karti hai, aur kya GK hai, oye hoi! She only told me these designs are ghatiya, third class, not something that will hilao the junta!”

Totally shaken and bewildered at this bizarre onslaught, the young man – whose parents had invested their wholesome income into making the lad what this world would call “cultured, educated, soft-spoken” – made the appropriate, polite sounds and left the office. On the way, stopping by for a ‘cold drink’, he reflected upon his life. Who were these strange clients – completely uninformed, coarse, totally disconnected with anything to do with basics of good, effective advertising? Why was his agency boss always insisting on young, nubile, half-naked girls to be splashed as the main focus of his ads even when all the client was selling were locks? Why did these creatures never exist six months ago in his high-profile Mumbai agency, where he trained and spent two glorious years? Why did he even shift?... The lad was now beginning to feel the stress and pressure of working in an environment that was a million light miles away from where he came…

Back at the office, confusion became confounded! His boss – a proprietor who was all sugar n’ spice just a few months back while begging him to join – blew his fuse! “Yaar, who told you to give him bhashan on what is good for his product? Is he a fool? Pata hai, he is one of my langoti yaars who has successfully run his Papa’s business for over 20 years, making a huge profit. Also, by the way, he is the President of the Ad Club and active member of the PRSI and Press Club, samjhe?” And then, a sudden parallel track, “What an excursion he organised to Amritsar and Wagah border, maja aa gaya… anyway, he called me and told me not to fire you. But yaar be dedicated to your work. What are you doing? Chal, chal get back…” This was the tipping point. It all spooled over in a millisecond – his fantastic two years at the professional agency, then the rush of blood to join this sole proprietorship of an ad agency for the so-called ‘independence’, and then the nightmare – bah! The young man had had it and finally exploded. “You got me here luring me with big bucks and great promises of freedom with responsibility. From an A-lister, all I’ve become is a Z-lister! My fault is that I didn’t listen to my friends because I was dazzled by the ‘seniority’. However, I’ve started regretting my shift more than anything I’ve ever done – you constantly refer to clients as Mai Baap and Bhagwan, you continuously instruct me to improve my ‘setting-fitting’! What the hell are we here? Pimps? Ever-ready suppliers? Weren’t we supposed to be communication consultants, solution providers?!? Or am I supposed to now always be a yes-jee, no-jee buffoon? You will never, ever understand professionalism because for you, billing is god, not quality… and that is injurious to my health!” Shocked silence followed on both sides. And then the lad blurted out, “I am quitting here and now. Bye!” With that outburst that even surprised him, the young man stormed out of the office. Of course the boss was too shocked to react. No one in his 30-year stint of doing various businesses ever had had the guts to speak to him in this manner.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

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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Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
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IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies

Experience Vs. Evidence

Evidence-based advertising, founded on experimental studies, is the only path to improving the effectiveness of persuasive advertising procedures

Prior to the 1940s, if you had a disease, it made little difference which doctor you went to. There were so many diseases and so many conditions that doctors could not learn from their individual experience which treatments were effective. This changed when doctors began to rely on evidence from experiments. Further progress was made when medical schools began to teach evidence-based medicine. And things progressed even more rapidly when the Cochrane Collaboration for health care began in 1993. It now has 28,000 contributors to serve doctors and patients. Evidence-based medicine has had enormous beneficial effects on the average length and quality of life.

Management is in a similar situation today as medicine was prior to the 1940s. Managers rely on their own experience and on the experience of other managers to decide what actions to take. This works well in simple situations in which they get good feedback. However, many management problems are complex & uncertain, and in these cases, eight decades of research have shown that experience fails. Few people are aware of this research, and, when told, most believe that the conclusion does not apply to them.

When doctors learned that some of their treatments were based on incorrect knowledge or procedures, most reacted as people often do when presented with disconfirming evidence about important topics: They became upset and attacked the credibility of the source. Nevertheless, the pressures are strong to follow best practices in health care. Many patients are well-informed about the possible diagnoses and treatments when they go to their doctors. Many doctors have been sued for failing to adhere to evidence-based procedures.

I have been fascinated by evidence-based management since I began my career in 1960. Many useful management techniques and principles have been discovered. However, to my dismay, this knowledge was typically ignored by managers.

In 1980, I visited my friend Paul Westhead soon after he became coach of the Los Angeles Lakers. After spending a day with him as he took the team through practice, it dawned on me that if we could apply management science techniques to the Lakers, it might lead businesses to follow suit. Paul was enthused about the project, but the owner of the Lakers, Jerry Buss, was not. (The Lakers won the championship that year, without my help.)

Nevertheless, evidence-based methods are currently being used successfully across the sports world, by teams including the Dallas Cowboys, New England Patriots and Philadelphia Flyers. Half of the 30 NBA teams had at least one statistician on their staff in 2009-2010. Those teams won 59% of the 962 games they played in the first half of the 2009-2010 season, while those teams with no statisticians on staff won only 41% of 958 games.

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Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies

150 awards (and not counting!)

They have lived in Both Rural and Urban India. This helps them understand their audience better and craft communication that connects with them

They have been awarded for their creative work by Abby, One Show, D&AD, CLIO and Cannes Lions. But once the awards lineup reached 150, they stopped counting. Their middle-class family background has not enabled them to afford a ‘Creative flair-o-meter’, as they put it. But that does not stop them from executing ideas that resonates their passion and commitment. 4Ps B&M brings to you Manish Bhatt and Rahgu Bhat, Founder Directors, Scarecrow Communications who believe that it is the consumer who seals the fate of a creative creation.

Were you always thinking of setting up your own agency?
Manish Bhatt (MB): Not exactly. In our advertising journey, somewhere along the way, we started taking ownership of clients. We had a free hand and could carve ideas our own way using our own methodology. Also, the exposure to different agency cultures helped. I still remember that it was at Contract that we learnt the craft of print. Every piece of work had to meet a certain set quality standard. It was an everyday battle that the agency was engaged in to ensure this quality. O&M on the other hand, had a very practical approach. We wouldn’t fight over every dangler or poster with the client beyond a certain limit. O&M therefore was a new school of thought altogether. At Ambience, we put this experience to work even as we were learning to deal with clients. Later, when McCann called us in 2004, it was Prasoon, whose strengths we could learn from. This was also a larger, powerful agency platform to stand on.

So, when did this actually happen?
MB: It was at McCann that freelance offers started pouring in and we realised that our equity had gone beyond the four walls of the agency. That was the first spark of entrepreneurship. Reputed brands were offering us freelance work. Most agencies we went to had their own philosophy of how things should happen. We started developing, over the years, subliminally, our own philosophy. While there was no friction, we realised that our philosophy was clashing with those of the agencies we worked for. In 2007, we moved from McCann to Contract. There we started forming an opinion on the way communication should happen, and the way an agency should function. We got a feeling that the optimum level of knowledge acquired over the years could help us set up shop. We were ready to take the plunge.

You have been together for more than a decade now. But how was the first encounter?
Rahgu Bhat (RB): We first met on the 3rd floor mess of Contract’s Delhi Janakpuri office in January 1996. I was a management trainee in Contract Direct. I was at my table, alone, having paneer pasanda, which was floating in oil. Manish joined me at the table and said (pointing to the paneer), “Lagta hai, aaj ka khana has been sponsored by Shell.” (One of Contract Delhi’s clients at that time). We decided to work together on a road trip to Bikaner and Bharatpur. While having a chai along with ‘mirchi ke pakode’ at a thela in Bharatpur, I got to know that Manish was not hitting off that well with his copy partner. I asked if he would team up with me. I was any way ‘single’. His only condition was – he wanted to participate in the ideation process and not limit himself to art direction. I had no problems. By the time the trip ended, I had no money in my pocket but I had a new art partner.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
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“It’s about literally connecting with Indians”

Etihad’s growth as the fastest growing Airline in the world has been legendary. Ward’s marketing strategies have paid off in many markets. In India, Ward tells Shephali Bhatt about the need to do a lot more in future

Andrew Ward
VP, Marketing, Etihad Airways

7 years ago, Etihad Airways made a humble beginning with around $100 million in revenues. Last year, the airways reaped US $2.3 billion. The man at the helm of marketing, Andrew Ward, VP, Marketing, says, “For an airline, the most important thing is to differentiate itself since over the last decade, with the introduction of local carriers, airlines have become general commodities. The consumer is now prepared to buy an airline ticket just like he would buy a train or bus ticket. We have to upgrade the offer so that most people would fly with us for a longer time. We have to offer a higher degree of service, so that when the consumer looks at the price equation, he realises that he is getting good value for money. We need to ensure that the consumer doesn’t switch to any other airline.”

For Etihad and its marketing man, India is an important market in that Indians are spread all over the world. One would find huge numbers of Indians in every continent. For example, even UAE, the key country for Etihad, comprises 30% Indians. Ward comments that he has positioned Etihad as one of the premium offering members of the market. To that effect, he adds, “Etihad Airways has been the fastest growing airline in the world over the last six years. That has been our strength. We have taken new aircraft orders, new spa services, first class private suites and what not. We have been on the path of continuous innovation in order to position ourselves as the luxury premium airlines.”

In this year, Ward has ensured that there be a stronger focus on digital marketing. He has significantly increased expenditure in the digital arena on an year on year basis. The aim is to create Etihad’s own online service environment. According to Ward, although standard banner advertising would always stay there, the most effective mechanism to advertise these days is through the internet. Certainly, there are different stages of development in terms of internet penetration, and Ward is not blind to it – one reason his offline advertising strategy stays fixed.

But given that Etihad is not as well known as certain other airlines in the Indian market, how does Ward plan to distinguish his brand? Ward accepts, “We have to push the brand awareness of Etihad in this market. A good way of doing that is finding a property that is already well known. In some markets, it can be sports personalities but here in India, it’s definitely Bollywood. It’s all about how we connect. We had to find somebody who is famous, in this case, we found Katrina Kaif. We now have to link the airline with her, get her to represent us and thus benefit from her popularity. We have already started a viral marketing campaign online with the video we’ve shot in Abu Dhabi airport. We are going to have her travelling to all our important markets where we’ll have specific events targeting our target and trade audience so that we can work on a B2B basis with travel trade.”

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Source : IIPM Editorial, 2011.

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

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Discover Travel ->TLC!

The rebranding bug has hit the lifestyle entertainment channel segment too as the race to provide trendier, bolder channels with new faces, new genres and new places goes on. Discovery Travel and Living, with more than 60% market share in the same category, has been rebranded with a new name – TLC! Rahul Johri, Senior VP & General Manager, India, Discovery Networks Asia-Pacific said, “TLC marks the beginning of a refreshing journey. It will add a new dimension to lifestyle programming by introducing innovative formats, spunkier hosts and swankier locales.” TLC will come up with new offerings which include ‘Shimmy’ and ‘Exxtreme Sommer’ and will also extend seasons of the already popular ‘World Cafe: Middle East’, Vir Sanghvi’s ‘Asian Diary’ & ‘Living with a Superstar-Shahrukh Khan’. While the exercise is a radical attempt at fortifying gained ground, it would also go a long way in adding newer viewers. On the whole, the rebranding and reprogramming will be initiated from September 1, 2010.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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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BREAKING BARRIERS TO EXPRESS AND EXPAND

A brand that had the first movers advantage in India and still commands the highest subscriber base, Airtel has moved on to ‘express’ itself on the global stage post one of the biggest acquisitions in Africa while preparing for imminent 3G war

One dream can change the world....one raised finger can break a billion hearts, two can win a world war. A whisper can inspire hope, a touch can instill faith, some voices can move a nation, some can dissolve boundaries. One act of defiance can spark a revolution, one hundred thousand candles can end a war - the power of human expression and the brand that has always asked us to Express Yourself, Airtel has grown leaps and bounds in the last few years to become one of the global telecom giants today. With a turnover in excess of $7 billion, it has become the 5th largest mobile operator in the world in terms of subscriber base and the 3rd largest, single country mobile operator. The brand has won an array of awards including “Most Preferred Cellular Service Provider Brand” award for six years in a row that only touches the tip of the iceberg!

“The power to keep in touch” started Airtel’s communication in the early years which stood for efficiency and unflinching strength of service. The “Touch Tomorrow” campaign soon followed with a consumer appeal and established a bond with consumers. “Live every Moment” took shape of the ‘leadership of more’ – of a brand that promised unlimited freedom to communicate spontaneously, not only in words but through exchange of ideas and emotions. The brand espoused the idea that consumers could now live every dream, every desire, every ambition, every thought…in essence they could ‘live every moment’.

Express Yourself, Airtel and arguably, Indian telecom’s most famous campaign ended up taking an encompassing view of telecom services as a whole and thereby creating a leadership in consumer mindspace as well. But, despite the continuity of Express Yourself, Airtel’s breakthrough campaign “barriers break when people talk” touched chords from the individual to the humanitarian level. A R Rahman’s impeccable Airtel signature tune has immortalized the brand and it remains one of the most downloaded ring tones in India. Prasad Narsimhan, ex-CMO of Virgin Mobile comments on branding in telecom, “Recent customer research confirms that branding is the single most important factor in customer choice and telecom brands further need to strengthen their differentiation in manners that are more relevant, desirable and defensible”.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

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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