4Ps B&M gets Inside The CMOs minds to find out how they Pick The Right Advertising Agency. Often, real life beats Romance hands down!
 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 ArticleSource : 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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 On July 08, 2010, Planman Media hosted a special meet, as a part of its Thought Leadership Summit series, this time covering an industry in flux in contemporary times – insurance. The meet was titled ‘Insurance: The road ahead’ and was held at India Habitat Centre, New Delhi. The tone was set by Rahul Aggarwal, CEO, Optima Insurance Brokers Pvt Ltd, who talked about the growth areas within various categories of general insurance wherein he emphasised upon the fact that health and motor insurance would be the key growth drivers. Mario Perez, Director-Marketing and Sales, Canara HSBC OBC Life Insurance traced the evolution of conventional distribution channels and discussed how banks as a channel for distribution of insurance have begun to play a critical role in building the interest and trust factor related to insurance products in India and how the role of bancassurance will become crucial in coming times. A S Narayanan, Head-Bancassurance, Corporate Buisness and Direct marketing, Bajaj Allianz Life Insurance threw light on the trends in both the global as well as the Indian insurance industry. He talked at length about the challenges facing the Indian insurance industry; however his main focus was on the regulatory changes which are in the pipeline. According to Narayanan, while the intention of the regulators behind bringing changes is good, it will be beneficial to only a select segment of the consumers and the insurers will not be in a position to serve a greater population base. He said that such regulatory changes will impact the insurance industry in such a way that the basic fundamentals would have to be altered in order to sustain. The final speaker was the VP and Country Head of Royal Sundaram, Prashant Singh, who gave a ray hope by saying that all is not over in the insurance industry. He analysed the insurance sector in the country using various parameters and illustrated the critical factors that will play a big role in the years to come in this industry.
 The fact that Farmville may soon be made unavailable on Facebook is certainly a bad news for over 80 million users hooked onto their virtual farms day in and day out – it is reported that the partnership between Facebook (evidently the world’s largest social networking site with close to 500 million users) and Zynga (the $4 billion worth gaming company and the creator of Farmville, Mafia Wars, Cafe World, YoVille, et al) is at rocks with Facebook revising the terms of agreement between the two parties. Under the revised agreement, Facebook will be reportedly entitled to claim 30% commission on the financial transactions made through the site for Farmville, where players spend real money on virtual items to move ahead and level up in the game. While it is believed that Zynga now has the resources and capabilities to leave the platform of Facebook and open its own portal, gaming experts claim the move will be a huge loss for Facebook as there is a huge chunk of users who’ve registered only for the game. Duh!
Mahendra Mohan Gupta, Chairman & MD, Jagran Prakash Ltd. Jagran Prakashan Ltd. (JPL), the publisher of the Hindi daily Dainik Jagran has announced the merger of the print business of Mid-Day Multimedia Ltd (MML, which comprises afternoon newspapers – Mid-Day, Sunday Mid-Day, Gujarati Mid-Day, Urdu newspaper Inquilab & website mid-day.com) with itself through an all stock deal. Here, the immediate task for JPL would be to turnaround MML’s financial fate (MML has a debt of around Rs.35 crore). In the long run, while JPL will get entry into Mumbai, MML’s Inquilab (one of the largest selling Urdu dailies in India) will get a boost from JPL’s strong presence in J&K, UP and Bihar. JPL, which was trying to tap into the burgeoning English newspapers’ market through its Inext and City Plus will now have some new regions to explore. Further, JPL’s strong network will help Mid-Day to strengthen its brand presence and recover ground that was perhaps being lost due to resource constraints. As per IRS 2009, Mid-Day’s average issue readership has fallen to 4,17,000 in 2009 from around 6,63,000 in 2006. As per analysts, synergies in marketing could bring in 10-15% expansion in revenue for JPL in the near future. Joint marketing and printing facilities, newsprint procurement, et al, will further bring down costs for both. But what still needs to be seen is how the cultures of the two entities will avoid conflicts, which generally occur during mergers. For more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
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 Technology has become the USP of many players in the banking sector… An update on what’s the current scenario of tech-use in banking Retail banking in India today is getting re-defined and re-engineered with the use of IT and it is sure that the future of banking will offer more sophisticated services to the customers with the continuous product and process innovations, with the change from ‘conventional banking to convenience banking’ and ‘mass banking to class banking.’ All these changes are really influenced by the changes in the political, economical, social, cultural changes of the country but above all, the business scenario is highly influenced by the changes in the needs and aspirations of the people. But today, the degree of such changes is so fast and more frequently experienced by them. Even the consumer status is changing from isolated to connected, unaware to well-informed, passive to active. As the outreach is enlarged in the banking industry in India with the increased number of banks and wider network, the customer demands convenience, comfort, speed, cost-effective and quality services in the banking operations. In the recent years, the Indian banking industry saw a host of new generation banks entering the market with their innovative strategies. All these bankers are generally slim in structure but heavily use technology and multi-channel facilities to reach out to a large section of the customers. Technology has played a definitive role in facilitating transactions in the banking sector and the impact of technology implementation has resulted in the introduction of new products and services by various banks in India and enhanced the reach of banks from metros to tier 2/3 cities and rural areas. At the same time, the payment services offered by banks to the common persons as well as the corporate bodies have improved substantially. This too is partly due to increased use of technology in service delivery and partly due to procedural changes necessitated in the wake of competition amongst the banks. With the introduction of electronic banking, banks are moving their focus of payments from the physical presence of money to the use of electronic money. For more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
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In this trend, the most recent one to enter the field is Medica Synergie, which is also perhaps the most (or rather, the only) professionally marketed brand in the social healthcare segment. Medica positions its brand on the twin attributes of accessibility and affordability. “It came into being because of a desperate need in Eastern India for an integrated, professionally managed healthcare company; also because this region is lagging way behind,” says Dr. Alok Roy, ex-COO, Fortis Healthcare Ltd. and now Chairman and MD, Medica Synergie. Medica Synergie has launched what it calls Operation Buddha, an exercise covering 30 thousand families (approximately 100,000 people) in the vicinity. The centre provides each of them with a card and these people can then visit the healthcare centre for consulting on any of their health problems for a nominal charge of Rs.5. Where follow up action is required for treatment, like an operation, it is at cost price – without any profit. The management is aiming to become one of the leading players in eastern India and to set up 10-12 hospitals. The management believes their core competence lies in being “Integrated Healthcare Providers”. They are into health delivery [hospitals – building, managing, running] public health, pharma retail as well as health architecture – a total, integrated healthcare centre. Medica is attempting to set itself apart on multiple parameters other than price and best in class healthcare professionals. The interiors have been developed by Sunita Alexander, and offer a warm, feel-good, cheerful, odourless, eco and environmentally friendly ambience! They have carefully chosen friendly attendants to guide and help patients and visitors 24x7 in every possible manner. Care has been taken to institutionalise ultra transparent billing procedures and availability of complete information to customers. They also provide flexibility to customers on paying their bills through EMIs; the tested route that revolutionised sectors like automobiles, real estate, consumer electronics & tourism in India. Dr. Roy tells us that he is a firm believer of ‘Employee Empowerment’ in thought, word and deed. “To us, it’s not fashionable tokenism or a slogan that is politically correct in the corporate sense of the word, but remains the core driver of Medica.” He remains convinced that employees are the public face of social healthcare and their empowerment – via guidance, inspiration, motivation, self-belief – has to be a given for effective results, be it image, productivity or even profitability – like Yunus’ Grameen Bank. For more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
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After FMCG, auto, real estate and telecom, now it’s the time for consumer durable players in the country to enter the slugfest! Summer in India looks a lot different this year, at least when it is about the so called ‘short’ commercial breaks, which always hit your road just when you’ve got too engrossed with your daily soap or cricket match on the idiot box. Strangely, the colas are nowhere to be seen – at least relatively. Instead, there are a number of celebrities posing with refrigerators or demonstrating the features of air conditioners, TVs too. Yes, there’s a war brewing north, south, east and west of centre, and it’s worse than last year. The reason is quite obvious. Encouraged by the reviving economic conditions in the country, manufacturers of consumer durables in India have enormously increased their marketing budgets to makes sure that no stone is left unturned to woo the consumers. The size of their budgets is spectacular, if not numbing. For example LG India, the subsidiary of the Korean consumer durable major, has earmarked a total of Rs.1,000 crore (Rs.700 crore for Marketing and Rs.300 crore on R&D) for this year alone. The company confirms its strategy of placing the Indian market on its priority list. The rejoinder is not so dissimilar in the case of Whirlpool, which has geared up for massive below-the-line (BTL) activities and is currently hosting various events (like in-store demonstrations, point of sale materials, trade and consumer promotions et al). In terms of marketing though, the figure is nowhere close to LG’s behemoth power. As per Whirlpool, it has plans to shell out around Rs.60-70 crore during this year with the focus of trebling the sales volume of its ACs. Even Hitachi India, a major in the air conditioner segment, has raised its marketing spends by nearly 35% as compared to last year and is aggressively escalating its presence in Tier II and Tier III towns through a 25% to 30% expansion in its distributors network. But the question is, what’s so different this year that was not there the previous year? Why is there a more than significant jump in various marketing expenditures of players? As per latest reports, the Indian AC and refrigerator markets are expected to surge to 3.2 million units and 6.2 million units respectively by the end of 2010. Considering the buying patterns witnessed in India, a major chunk of the sales would take place in summers, that is, during the April-June quarter. This makes it imperative for the durable players to ramp up their production levels in both the product categories and set higher growth targets for this quarter. Moon Bum Shin, MD, LG India, says to 4Ps B&M, “For ACs, we have a current production capacity of 1.3 million, which we intend to scale it up to 1.5 million with an investment of Rs.80 crore.” He further adds that his company is now targeting to generate a revenue of Rs.3,000 crore from the refrigerator category this year. For more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM ranked No 1 B-School in India
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After going through high spirits (literally) at the Goafest this year, almost everyone belonging to the ad-frat is back on their feet since the rumours of favourable voting have been doing the rounds. As per the Abby rules, jury members are required to abstain from voting for any of their own agencies work. However, it is rumoured that Mudra, Leo Burnett, Taproot India and O&M have flouted this rule due to which the managing committee of Goafest (AAAI & Ad Club Bombay) is considering rescinding Abby awards won by these four agencies. “These developments have put the authenticity and pragmatism of the awards into jeopardy,” says an industry source. Although, Colvyn Harris, CEO, JWT and Chairman, Goafest has assured that investigations are on (“While it is true that the committee, in conjunction with Ernst & Young, is investigating cases of judges voting for their own agencies’ work, no decision has yet been taken on the action related to the issue,” he said), yet the credibility of the Goafest awards, considered equivalent to the much coveted Cannes ceremony in the national context, is certainly going to be questioned. Swati SharmaFor more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
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------------------------------------------------------------------------------------------------------------------
Aly ShariffMD, Premier Inn IndiaAs I love to travel to new places, my favourite destinations in India are Kerala & Darjeeling. Internationally, it would definitely be Cape Town in South Africa. However, with my family, I always love visiting Maldives. It’s my favourite family holiday spot as we have a great time whenever we are there. When it comes to business travel, it definitely has to be Mumbai, as it is a happening, vibrant and candid city. I have a passion for photography, so whenever I am travelling, I just cannot do without my five cameras and my favourite pair of binoculars. For more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
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------------------------------------------------------------------------------------------------------------------
Big blockbuster drug brands that once promised billions for big pharma are fast entering the generics zone. The victims are many and their brand pipelines are dry!What’s it with patents in the pharmaceutical industry? You spend billions in dollars and months in time, manage to come up with a ‘protected’ branded formula that has the potential of earning you a few billion bucks, and then much before you have derived complete pleasure out of your R&D efforts, other competitors who have been eyeing your revenue basket for years together, start relishing the fruits of your risks and sweat drops. Unfair, as many say; fair enough feels the US Federal Drug Agency (USFDA). Today, the biggest of names in the world of pharma have their back to the wall when it comes to the future of some of their best-selling patented drug brands, with a hard-fought battle against generic drug makers ahead of them. And life has already become difficult. Take Pfizer for example – during the past ten years, the acquisitions of Warner-Lambert (in 2000 for $90 billion) and Pharmacia (in 2002 for $60 billion) proved to be glorious moments (the first deal gave Pfizer a control over the world’s no.1 selling $11.4 billion-a-year drug Lipitor, while the latter helped it pocket its now third-bestseller Celebrex, which earns $2.5 billion-a-year); but CEO Jeffrey Kindler, the very same deals are now giving nightmares of a dry drug pipeline. While its patent right over its largest revenue earning brand Lipitor patent will expire a year later, its third-largest selling drug Celebrex will go generic in 2013; combine these two, and you are talking about an erosion of $11.74 billion in the drugmaker’s annual revenues per year (as per research by Evaluate Pharmacy, the loss of revenues, post-patent expiry for a formulation, is estimated at 85%). Market reports suggest how by 2014, generic drug companies would be staging a grand stampede on 14 of Pfizer patents, representing 70% of its sales revenues; there is clear and present danger for Pfizer. Kindler is running a hard to win race against time, and for the near future, there seems to be no new blockbuster brand that can heal Pfizer’s wounds, not even its most recent $68 billion acquisition of Wyeth. Viagra, which is the drugmaker’s $2 billion-a-year earning brand is also going off-patent in 2012. In the very first week of its launch in April 1998, Viagra had received 4.3 million prescriptions by medical practitioners. By the end of 1998, more than 200,000 doctors had written 7 million prescriptions and the brand was being marketed across 40 countries. Very few drug brands in history had attained such widespread use so quickly. Come 2012, and Viagra’s dream run will end, with generic brand makers launching cheaper versions of the formula. “Pfizer has a number of downward revenue revisions. You have to believe board members are scratching their heads,” says David S. Moskowitz, Analyst at Friedman, Billings, Ramsey Group Inc. In short – a $50 billion-a-year Pfizer to about a $15 billion-a-year skeleton; and that appears a possibility! The case is the same with many other patented drug brands, as Luis Hector, Analyst, Credit Suisse says, “The current scenario reflects an acknowledgment that insufficient drugs have moved onto the market.” AstraZeneca’s rights over two billion dollar drugs are set to die out fast. It will lose patent rights over both the $4.5 billion-a-year earning Crestor and the $4.9 billion-a-year Seroquel brand by 2012. Eli Lilly’s Zyprexa, which garners $4.9 billion in annual revenues, will expire by 2011. The list of patent expiries of products is long, with names like Advair (owned by GSK, with annual sales of $7.8 billion), Plavix (Sanofi-Aventis & Bristol-Myers Squibb, $4.9 billion), Singulair (Merck, $4.1 billion), Cozaar (Merck, $3.3 billion), Levaquin (J&J, $1.8 billion), Zometa (Novartis $2.1 billion) and many more – all brands over which exclusive marketing rights would have been lost by 2013! For more articles, Click on IIPM Article.Source : IIPM Editorial, 2010. An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri ( Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.
IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
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------------------------------------------------------------------------------------------------------------------
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