Chinese Businesses are Conquering The World. But without quality MBAs, they could just find themselves up The Creek without a Paddle

When it comes to enthralling the global market with their products, Chinese companies seem to know it all, with Chinatowns dotting the landscape across the globe. Unfortunately, Chinese B-schools haven’t made the same kind of impact globally, in fact, not even in China, leave a puny handful! However, this one comes as a blinder. A cursory look at the 2011 Financial Times B-school rankings makes it clear how global management philosophy is undergoing a transformation. Way back in 1999, the FT rankings showed that 20 of the top 25 B-schools were based in the US. In 2011, only 11 of the top 25 B-schools belonged to the US. What is even more surprising is the entry of a Chinese B-school (which was until recently alien to world of B-school rankings) in the list of the top 20. Surprisingly, the China Europe International Business School (CEIBS) (ranked 17th globally) was established in 1994 and didn’t even have a formal global accreditation till 2008.

Then, there are a few more like Antai School of Business, Fudan University-MIT Sloan and the Beijing International MBA at Peking University, which have just about started making marks on the MBA landscape. But once the dust from these global management education rankings settles down, the jolt of realism is bound to set in. Indeed, as things become clearer, you find pressing challenges facing China’s B-school boom. For starters, the world class management schools we just mentioned have either been set up in collaboration with the likes of MIT Sloan or have been founded through a consortium of Western Universities.

The fact is, despite being an economic powerhouse, China lags behind in the pecking order of globally relevant business education. A report released by McKinsey, ‘How to address China’s growing talent shortage’ shows how this problem is deeper rooted then one can imagine. Some 44% of the executives surveyed by McKinsey at Chinese companies reported that insufficient talent was the biggest barrier to their global ambitions. The report further adds that 37% responding companies to an AmCham Shanghai survey of US owned enterprises said that recruiting talent was their biggest operational problem.
 
Prof. Mauro F. Guillen, Director of the Lauder Institute, The Wharton School, University of Pennsylvania reaffirms this looming situation as he exclaims, “One of the most significant bottlenecks that the Chinese economy is facing has to do with qualified human resources. When an economy grows at 10% for 30 years, you are bound to have this problem. China is sending a lot of graduates abroad to pursue advanced degrees, but not all return. Thus, it is key for them to invest locally in business schools. Given that all US and European schools want to set up operations in China, I would predict that in 10-20 years this will not be a problem. However, local B-schools with no foreign connection will remain an issue.”

This is reaffirmed by The Institute of International Education (IIE), which describes China “as the largest supplier of international students to countries around the world over the past decade”. The fact that Chinese students are the single largest group of students in the UK (outnumbering students from even EU countries) speaks volumes about the state of higher education in the mainland.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies

----------------------------------------------------------------------

The launch of Windows phones has set tongues wagging in the industry but it’s too early to say whether they will win their way to consumers’ hearts.

About a month ago, Microsoft organised a mega event to announce the launch of its latest set of Windows phones in India based on the updated Windows 7.5 or Mango operating system. The veteran software company, has recently been focusing on establishing its own operating software for mobile phones and has entered into a slew of manufacturing agreements with leading handset players like HTC, Acer, Samsung, and Nokia for launching Windows powered phones in India. A few days later after that event, Nokia hosted an even bigger do in London to unveil its much anticipated Windows offerings: Lumia 800 and 710, as well as four ‘Asha’ series smartphones aimed at the highly lucrative emerging markets.

The Nokia-Microsoft agreement, inked in February this year, has the potential to be a game-changer for Windows powered phones in India and other emerging markets. Despite its recent reverses in the handset market, Nokia still outsells other phone makers by a wide margin. And since players like Samsung, HTC and even Acer have a larger marketing focus on the established Android franchise, they will be lesser inclined to push Windows phones all that aggressively.

The launch of Nokia’s Windows powered Lumia phones have come at a critical juncture and just in time to test the waters during the Christmas holiday season in the Western markets. Apple’s iOS platform recently upgraded to iOS 5, while the latest version of Android — Ice Cream Sandwich — is about to become operational. BlackBerry OS 7 too has been recently launched. And in the midst of it comes the upgraded version of Windows 7, Windows 7.1, or Mango.

In recent times, while Google’s Android handsets have powered ahead, Microsoft was forced to sit on the fence. A key reason Microsoft could not make inroads in the smartphone space was its inability to get OEMs (original equipment manufacturers) to pump out new handsets for Windows phone like they did for Android. Now, at last, Microsoft seems to have finally got that equation right and is keen on building the ecosystem for its Windows phone. And its agreement with Nokia is in piece with its new focus and thrust on getting its phone business hit the right notes in the marketplace.

Nokia’s marketing efforts and its deep knowledge of handset retail are likely to offer a big boost to sales of Nokia-branded Windows phones. Nokia Oyj Chief Executive Officer Stephen Elop, while launching the Lumia-series phones said marketing spends on the Lumia will triple compared with prior product launches. Nokia has lined up 31 service providers, including Vodafone to win back market share from the likes of Samsung, and Apple. In India too, with its Asha series, Nokia is aiming to regain its 50% market share by 2012 with this offensive. Industry journal ‘Voice & Data’ reports that for the fiscal 2010-11, the Indian mobile handset market touched Rs 33,171 crore and Nokia’s share was Rs 12,929 crore.

And it’s not just Nokia that Microsoft is counting on to propagate its Windows mobile OS. HTC has already launched Radar and Titan while Samsung will soon introduce the latest Windows offering of its Omnia W range. Another OEM, Acer, too is gearing to launch its Allegro range. The Windows phone marketing campaign will use the distinctive USP of Windows phone interface — large, colorful tiles, unlike the smaller icons of the Apple and Android interfaces.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies

----------------------------------------------------------------------

In a country where the consumer durables segment is brimming with breakneck competition, Shanta has been expanding Haier comfortably

Marketing a product in a price and value conscious market like India is challenging. But the opportunities of tapping the vast potential that the country has to offer are equally exciting. The motivation comes from entering a mould only to break it and grow bigger and better. Shanta Roy Sanjeev, Marketing Head, Haier Appliances India is one such person who has skillfully broken all those moulds that labelled marketing as a complicated business function. In an exclusive conversation with Onkar Pandey, Sanjeev talks about the dynamism of the Indian market and her journey as a marketer in such a challenging environment.

Since the beginning of the year, Haier has launched many new products. Is this a well-thought strategy?
The Indian market, according to me, has a lot of potential when it comes to electronics and consumer durables. With an impressive line-up of products across different offerings in electronics and home appliances, we are confidently targeting a turnover of over Rs.1,250 crore in FY 2011 as against Rs.825 crore achieved in FY 2010 (between January and December). Reflecting Haier’s strong commitment, we are planning to introduce new and innovative range of products this year across all its categories. Moreover, looking at an aggressive multi-fold growth with an emphasis on technology, quality, innovation, value and services penetration, the focus this year is on ‘consolidation’ with expansion of ‘Haier Experience Centres/Zones’ nationwide.

Every market has its own set of challenges and opportunities. What is unique with respect to India?
The market for consumer durables is very competitive and the dynamics are changing. Great quality products backed by R&D, strategic marketing and distribution are the only way to remain in the market. The highly competitive market also adds the ‘homogeneity’ aspect which affects the overall market attractiveness. Moreover the basic marketing principles have changed. Due to continuous consumer empowerment, the “center of power” has forever shifted from the marketer to the customer. With days passing by, it is becoming harder and more expensive to replace customers, making ‘Customer Lifetime Value’ an essential business metric.

From Panasonic to Yamaha, to HCL, and then Haier, you have had varied experience as a marketer. How was the journey and what lessons did you learn on the way?
So far my professional journey has been highly experiential, challenging and rewarding in many ways. I have worked with various brands with learning experience attached to each. The basics learnt during the initial years have always served as the cornerstone for my career growth. Moreover, I have been fortunate enough to have good mentors and leaders who have always added value to my work. Mr. Eric Braganza’s (President, Haier India) extraordinary leadership skills and his expertise in planning and management, led me take key initiatives for Haier India that has changed the position for the company in the face of its active competitors. He has always been very supportive and stood by me for the strategic marketing decisions that I have taken for the company.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies

-----------------------------------------------------------------------

When I take a ring side view of the kind of advertising that a number of real estate players are doing today to lure customers into having a dekko at their property, one particular indicative orientation that never fails to catch my attention is the availability of a ‘golf course’ in the vicinity. In the years that our generation grew, the very term used to bring to mind pictures of cigar chomping, jet setting first world millionaires (in dollar terms) moving around with their caddies and a number of other helpers at their beck and call, often on the other side of 50; hitting birdies as well as winning multi-million dollar deals on those very greens – all in a days work!

Count on good ol’ Indian ingenuity to make first world luxuries so commonplace and to distort such well established stereotypes to the point of no return. On one end, these players are actually utilising that particular USP to symbolise their ‘products’ as luxury. Admittedly, the middle class of today is becoming a stickler for affordable (even seemingly so) luxuries, and therefore the broad approach makes sense. But on the other end, they are also playing with the luxury image of a golf course and ending up losing sight of the very objective for which they had planned the entire exercise.

It’s a crazy rush for a share in the Indian realty space. With India’s housing shortfall pegged at anywhere between 20-70 million residential units by World Bank, competition looks hardly enough to make it crowded yet. The demand is expected to be even more if you go beyond actual need. A fact of India’s shifting demographics is that growing numbers of working couples are looking to stay away from parents, which is expected to provide a further boost to the demand. As the global economy shifts focus towards China and India, there is understandable optimism among realty players on the future value of their current investments. By 2050, Indian cities are expected to have some 854 million residents according to UN estimates, which is just about the entire current population of US, Brazil, Russia, Japan & Germany combined.

When you look at economic profiles, the market divides itself into several levels. Around 148.92 million Indian households (60% of total) have an annual household income of less than Rs.80,000/-. At the next level another 132.66 milllion have annual household incomes that start from around Rs.80000 and go upto the Rs. 1 million plus range. There is a visible resurgence in the commercial segment as well post slowdown, with office rentals growing by 5-15% in major commercial centres across India, as per a research by Cushman & Wakefield. Pune led the resurgence followed by Delhi. The research firm projects demand of around 240 million sq. ft. across India in terms of commercial space by 2014. However, a huge 46% of this demand is still expected to come from the three major regions of NCR, Bengaluru & Mumbai.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies

-----------------------------------------------------------------------

Bose’s Products are Undoubtedly its most Powerful Sales Team. But should The Company continue to let them alone do most of The Talking?

It’s most ardent fans say that Bose is to audio systems what Microsoft is to operating systems, Intel is to microprocessor chips and Google is to search engines. The reasons stem from the company’s genesis itself, based on its founder Dr. Amar G. Bose’s (former professor at Massachusetts Institute of Technology) philosophy that “audio products exist to provide music for everyone, everywhere – music, not equipment, is the ultimate benefit.” His focus on user experience backed by top quality R&D ensured that Bose sound systems made their mark in most products that they have launched in the audio space.

With the Indian market for high-end products giving room for optimism across categories like apparel, cosmetics, home furnishings, cars, consumer electronics, et al, Bose has also been growing its presence at a brisk pace, and is well received by customers. But there is one aspect of the company’s growth that would keep marketing theorists aghast – their apparently high aversion to advertising and creating some sort of brand personality for Bose Systems.

Promotions are almost entirely restricted to the 33 retail points of presence it has established across major hubs in the country; including smaller towns like Pune, Jaipur and Ahmedabad. Here too, executives aren’t willing to talk much about the company and would only be happy telling you about products, as my personal experience suggests. Marketing has evolved from the school of thought that a great product just sells itself. Then why does a highly successful brand like Bose still follow the old school and rely on product brilliance, highly premium pricing, retail presence & word of mouth alone?

“(Consider how) a brand like Body Shop became a £2 billion brand without spending a shilling on advertising and entirely driven by word of mouth,” counters brand consultant Kiran Khalap. Of course, one advantage that comes out of this is the positioning of Bose as a very exclusive brand for a special set of people. For many years, Bose has been one of the world’s leading makers of speakers for home entertainment, automotive and pro-audio markets, and also manufactures a variety of consumer models for stereo systems and home theatres, including its compact Wave radio system. In fact, some aficionados are known to save for months, as the starting price of these speakers is around Rs.l lakh!

The company follows a ‘direct to customer’ approach; with no middlemen or resellers, by setting up exclusive stores for its products. But isn’t the company severely restricting itself by not investing in advertising? Bose officials refused to respond to 4Ps B&M, citing that being a private limited company, they do not divulge such information to media.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies

-----------------------------------------------------------------------

Sunder Aaron, Business Head, Sony PIX tells 4PS B&M about The English Movie Genre Segment and his Future course of action for The Channel.

Sony PIX started off on a ubiquitous April 1, 2006 and went on to compete belligerently with Star Movies and HBO. PIX has had the historical advantage of being able to pull movies from the Columbia and MGM roster; a roster – of unconventional lineups – made it number 3 in its category. A research conducted by TAM Media Research in 2010 revealed that Sony PIX showcased more premiers than Star Movies, subsequently resulting in an 8% market share. The recently introduced High Definition (HD) format has given more dope to the segment dynamically altering the competitive landscape. However, till the time HD reaches a formidable number of viewers, there’s nothing much to fear. Sony had appointed Sunder Aaron as Business Head way back in 2006. Sunder had made quite a mark then for his AXN initiatives (‘The Man’s World Show’ being one). Through the years, Sunder has understood the landscape much better. And 4Ps B&M met up with Sunder to understand the hows, whats and wherefores of it all...

After having worked across various global economies, you’ve been looking after the business at Sony PIX for quite a long time. What is your outlook with regards to the Indian market?
India is an extremely dynamic market. It’s a challenging place for distributing revenues. Developed markets are seemingly different. You cut a deal with the operator who tells the number of subscribers they have and how many of them you’ll be able to reach to. That doesn’t happen in India.

What are your views on incorporating Indian content in English movie vhannels? Is such a development worth the effort?
We are the only English movie channel which has incorporated local original programming in India. We do have our own benchmarks for deciding the content. For instance, we showcased Cyrus and 15 Park Avenue. It works as an opportunity to raise standards.

With strong competition around, Sony PIX came in relatively late. You competed well, but still lag behind at fourth position. What is the strategy ahead?
We are right in the middle of a transformation. The basic idea behind Sony PIX was a more contemporary channel. So we went through a thorough analysis comparing our on air elements to competitions and then redesigning the channel to what it is now. Probably, the viewer might not be able to articulate the differences we made to the menu and the fonts, but it does make its way to the subconscious. We have been and will be aggressive on the acquisition of movie studios and properties. An extensive focus on BTL activities like concerts will also help us in the long term.

You primarily target viewers in the age group of 18-44 years. This encompasses segments with different tastes and preference for movies. Don’t you think it is a challenge to maintain balance while catering to such a diverse set of audience?
We are revamping our library with a view to push the average age to 15-20 years old. Sony PIX already has one of the most coveted line up movies including all time favourites like Jerry Maguire. Now, we are focussing on bringing movies like The Forbidden Kingdom. A channel should raise the bar as per the viewers standards and that is what we are attempting to do.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

-----------------------------------------------------------------------

It is worth walking the extra mile if at the end of it you know you have brought about a meaningful and positive change. In the same spirit, The Indian Institute of Planning and Management (IIPM) honoured six individuals from different walks of life with the prestigious Bharatiya Manavata Vikas Puraskar for treading that extra mile. This award is given for the commitment to bring about a positive change in the society and for championing the cause of equality, social justice and human welfare. The award ceremony, organised in New Delhi on March 28, 2011, was presided over by Swami Shantatmananda Maharaj of the Delhi branch of Ramakrishna Mission.

The distinguished award, which additionally has a prize money of five lakh rupees, a gold medal and a citation, was conferred upon Dr. Kiran Bedi, Prof. Ilina Sen, Dr Binayak Sen, Prakash Kaur, Justice (retd.) V R Krishna Iyer and former Chief Election Commissioner of India, T N Seshan. It is one of the various awards that IIPM has instituted to celebrate the spirit of sacrifice and selfless giving.

Speaking on the occasion, Dr. Malay Chaudhuri, founder Director, IIPM, and Chairman, IIPM Awards Committee, while commending the awardees for their commitment towards their respective causes, said, “In the absence of economic planning in India, social welfare and poverty alleviation programmes are never successful. This leads to criminalisation of the society and the exploitation of the poor at the hands of the rich and the corrupt.” The ultimate cause of uprooting poverty and injustice from the country are very close to the heart of Dr. Malay Chaudhuri.

Thanking IIPM for the award, the most respected social activist and former IPS officer, Dr. Kiran Bedi said, “It gives me immense pleasure as this award will go a long way in contributing towards my cause.” She urged the IIPM students and civil society to join hands against corruption and exhorted them to work for the welfare of the poor at the grassroots level. Dr. Kiran Bedi runs the NGOs Navjyoti and India Vision Foundation; and supports various social causes like prison reform, child welfare and prevention of drug abuse.

Prakash Kaur received the award for her unrelenting mission of rescuing unwanted and unclaimed newborn girls and giving them a secure home and future. “I feel grateful for this award,” said Kaur, overwhelmed with emotion, “It gives me immense satisfaction to be among the people who support humanitarian causes and are ready to help all those in need. I am an insignificant person and yet the IIPM awards committee selected me for this prestigious award.”

Prof. Ilina Sen and Dr. Binayak Sen were individually awarded for their dedicated efforts in restoring sustained focus on human rights in Chhattisgarh and for ensuring social justice for the tribals. In the absence of Dr. Binayak Sen, his wife Prof Ilina Sen received her husband’s award too. Dr. Ilina Sen, who has embraced a life full of difficulties, said, “I thank IIPM for the awards. The Bharatiya Manavata Vikas Puraskar has boosted my morale. It feels as if I am not alone in the ordeal through which my family is passing. This award has made me forget my pain for some time and I strongly hope that our struggle for social justice in Chhattisgarh and other parts of the country would produce the desired results.”

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

-----------------------------------------------------------------------

How “New Media” is Redefining Traditional Media

The media has been the harbinger of many revolutions and is constantly evolving. From newspapers to television channels, to Internet news portals, social networking sites and blogging, the change has been phenomenal. These changes became the theme of a seminar organised by Planman Media, the publisher of The Sunday Indian, a news magazine published in fourteen languages, at the North Campus of the Delhi University in association with the Web Journalism department of Sri Guru Teg Bahadur Khalsa College on March 4, 2011. The theme was “New Media-Youth Media: Challenges and Opportunities”.

The speakers shed light on various aspects of the theme at the occasion, which also witnessed the launch of The Sunday Indian’s Hindi website: www.thesundayindian.com. Besides various colleges of the Delhi University, the seminar saw a presence of around 700 teachers and students from various other journalism institutes. Successful students of the web journalism course from Sri Guru Teg Bahadur Khalsa College were handed out certificates by Prof. A. Sandeep, Group Editor, Planman Media, who also called upon the students to use the new media to build a civilised society and dedicate themselves to the rejuvenation of the nation.

The seminar was attended by popular blogger and Managing Editor of NDTV India, Ravish Kumar, Input Editor Zee News (UP) Sheetal Rajput, News 24 Prime Time news anchor, Anjana Kashyap, MP and national president of Bhartiya Janta Yuva Morcha, Anurag Thakur, net activist and editor (India) of the Sydney based The Indian, Aditya Raj Kaul, former President of Delhi Sikh Gurudwara Prabandhak Committee HS Sarna, Principal of the Sri Guru Teg Bahadur Khalsa College, Dr. Jasvinder Singh and chairman of the college managing committee, Sardar Joginder Singh Walia who expressed their ideas on the new media.

All the principal participants unanimously agreed to the fact that the future belongs to the new media, which is one of the most influential media – the Internet. The thanksgiving note was delivered by the college’s Associate Professor Dr. Smita Misra. The proceedings were conducted by DAV college’s Assistant Professor Dr. Raj Kumar.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education Indial
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

-----------------------------------------------------------------------

With Companies eyeing to Wreck more Moolah from Primary Market, Marketing and Communication have become Critical aspects for every Public Issue

In the 1980s, 1990s, and even the early 2000s, all that a company need to do in India to spike up the hype about their organization was to simply announce an IPO. The very act of announcing a public offer used to result in over-hyped discussions about the impending IPO and a subsequent heated mad rush towards applying for the public issue. An IPO announcement – for the investors – was a sure shot god gifted method of making the regulatory bales of hay; and of course, the sun was supposed to shine on forever. The corollary to all this was that there was no particular killing need for any corporation to go overboard in attempting to hype up their IPO. In fact, hyping up an IPO was a sure way to generate cynicism and negative views from the public – about why the company needed to advertise so much in the first place? In essence, all that a company needed to do then was to release an excuse of an advertisement in one of the main newspapers, and leave application forms for the IPO in hundreds of thousands lying around banks and other investment hubs – and the deed was done; the IPO was oversubscribed.

And then the Sensex crashed; and again; and again. With volatility gripping the Sensex, and sense getting drilled into investors about the fact that IPOs need not always give returns, the Indian financial market was faced with a brand new situation. It wasn’t enough whether you were a top performing corporation, unless you were able to advertise your IPO with a post modern fervency, your IPO, more often than not, would end up at getting the short end of the stick by investors. In other words, for the first time, the importance of addressing the marketing issue in an IPO has started taking bigger relevance than the fundamentals of the IPO itself.

So what should be the marketing paradigm that IPOs should follow to ensure success in subscription? Empirical evidence does give some insight. The successful IPO of DLF in mid-2007, which raised $2.3 billion and the market euphoria that got generated over Reliance Power’s $3 billion IPO are critical learning chapters. As a matter of fact, the Reliance IPO received a record 5 million applications from retail investors, got oversubscribed by 73 times and generated a demand worth over $196 billion. It’s a different story altogether that the issue witnessed one of the worst listings on the bourses eroding 17.22% of the shareholders’ wealth on the very first day itself.
 
But then, the biggest take for any marketer in the financial domain was that despite not weighing heavy on fundamentals (the stock is currently trading at Rs.122.35 less than half of its issue price of Rs.281.25 adjusted for a bonus issue of 3 shares for every 5 shares held), the RPower public offer put the market on fire in terms of investor participation – and a structured marketing and communication strategy played the most critical role in the same.

Sudhir Gupta, Consulting Editor of BFM (Banking, Finance, Markets), comments, “An IPO can be successful in today’s times only if IPO managers understand that IPO marketing is much akin to marketing of a soon-to-be-released movie or an FMCG product. Just as companies market their products or services, IPOs too have to ensure a touch of brand marketing and a primal focus on the 4Ps of marketing.”

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education Indial
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

-----------------------------------------------------------------------

just like divorce rates, Client-Agency break-ups are only on The Rise in The Current times, as there is growing dissatisfaction at both ends of The Relationship. Do they really have to end up this way? What Factors go into The ‘Right’ Agency Selection Decision Process? 4PS B&M Presents An Agency Primer!.

The year is 1971. It’s a lazy afternoon, and Gene DeWitt is nibbling away at his tuna sandwich in the office cafeteria. Gene works in an ad agency, and he’s worked pretty hard in the five years he’s been here. In that time, he’s risen from being a media planner to being the assistant media director – a spectacular rise by any standards. Gene’s career success has mirrored his agency’s – which has grown from being a $60 million firm in 1966 to around $500 million in 1971, gaining new clients flamboyantly and efficiently. The agency must be doing something as flamboyantly right, says the world, to be gaining so many clients so fast.

Thinking about all this, Gene is quite pleasantly surprised to see the group’s founder walk into the cafeteria, and choose Gene’s table to park himself. Gene dotes on the founder and knows that the agency has grown so fabulously well purely because of the fact that this very man had mastered the art of getting clients – that’s what the world said. And that’s the rarest of rare arts, Gene knows. Making full use of the gifted opportunity, Gene gets into conversation with the founder; and after the initial introductions, jumps at the first opportunity to ask the founder the question he’s always wanted to ask. In Gene’s own words, “I told him that I was amazed and delighted by the rapidity of the agency’s new business growth and asked him what his ‘secret’ formula was?”

The answer to that question makes the import of this primer, the totem of this pole, the crystal of this ball.The founder replied that while he tried to do much to market the agency to the clients, he just couldn’t point out to that one tactic that made clients choose his agency over others! The fact that this founder was none other than the legend called David Mackenzie Ogilvy made the statement more noteworthy than ever. If the lord of advertising did not know what were the factors that clients considered to chose his agency, then who would?
 
For any company/client, choosing an agency is the most critical part of ensuring a long-term profitable relationship. More often than not, uber haste by clients at the initial agency selection stage – perhaps because clients are too blinded by the agency’s brand name, or past work, or famous employee credentials – has resulted in a relationship that is damaging not only to the media communication of the client, but critically bloodying to the sales of the company’s products. But how then should companies be choosing their agencies?

To decode that very concept, 4Ps B&M went across the industry and the globe, to both sides of the story, to the clients, to the agencies, to experts... to give CMOs and clients the 10 sacrosanct commandments that make up the essential checklist while choosing an advertising agency. Then again, will following these tactics enable you to get the best agency? Well, we really don’t know that! But if we accept Ogilvy’s doctrine, then not following these will surely increase the probability of ending up with the worst ones. In essence, it is unpardonable for you as a CMO to ignore these ten rules while selecting an agency. If you’ve stayed with us till now, you’ll stay with us till the end; here you go:

1. Be specific about what you exactly want from the agency
‘Time is Money’. And this ineluctably is not debatable. Time has become more valuable then it ever was. Information explosion brings with it a paucity of adequate time to utilise information relevantly. In such a scenario, the idea of random pitches doesn’t sound very charming. To cut to the chase, it’s the CMO’s duty to do his/her homework before calling for a pitch to the gadzillion ad agencies around them. Says Anup Chitnis, Executive Creative Director, Ogilvy & Mather, South Asia, “Random pitching makes the floor too wide and open for multiple agencies and eats up a lot of energy and time on both sides. Clients should be more savvy with respect to what exactly they want from an ad agency; and based on that, they should call for a selective pitch”. Simultaneously, it is essential for the ad agency to do the requisite homework on the client before complaining about too many pitches. Adds Ajay Kakar, CMO, Aditya Birla Financial Services, “Something I learnt during my stint at Ogilvy was that you should yearn to be most valued by those who most value brands. If you think the client is flippant, don’t pitch.” In addition, on the topic of specifications, Rahul Mathew, Executive Creative Director, McCann Erickson avers, “The stuff we present during pitches stays confined within the walls of the client’s boardroom. I wonder why the idea presented during pitches never makes it to the final stage.” So, if you, as a client, didn’t like what an agency showed you during the pitch, why did you choose them in the first place? The corollary – if you chose them for potatoes and then ask them to handle tomatoes, quality is the first thing that goes up the altar.

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 ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website
IIPM Proves Its Mettle Once Again....
Arindam Chaudhuri on Internet.....
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management

-----------------------------------------------------------------------