Hey... Even that is not yielding desired results

IIPM : EXECUTIVE EDUCATION

In fact, since the worst sufferers of the recession have been financial service companies, the category as a whole has cut back their ad spends by more than 27%, and the back is led by credit card and insurance marketers specifically. American International Group (AIG) which spent $118.7 million in 2007 and $64 million in the first half of 2008 on advertising, has announced that it will pull its corporate advertising for the remainder of the year (interestingly the call off will save them 0.1% of the $85 billion bridge loan from Paulson, Bernanke & co.). What’s more, if the Citi-Wachovia deal does not work out, the former will apparently hold back $542 million of its ad spend. Simply glance at Table I on pg. 30 and you’ll realise that the advertising sentiment is on a downswing across sectors in the great American market. Procter & Gamble – America’s biggest ad spender by far has cut its ad expenses from $1,613 billion in 2007 to $1,490 in 2008; AT&T jogged down its ad ex from $1,113 to $940 in the same period. Clearly, the pants of every big American brand are on fire and they are rushing to Madison Avenue and slashing ad budgets to douse the flames.

Good news however is ‘round the corner. Takeover giants like Barclays Plc (which has picked up stake in Lehman Brothers), Bank of America (Merrill Lynch) and JP Morgan Chase (Bear Sterns and Washington Mutual) are expected to step up their advertising expenses to educate their new customer base, given that all the fallen giants have now opted to move into traditional commercial banking too. In fact, given their falling popularity and consumer confidence level, advertising and building back their brand equity is perhaps the only survival mantra left for them to explore.

Increasing ad spends during recession time can be a good thing says David Haigh, CEO, Brand Finance. He believes that well managed brands now recognise that cutting advertising and marketing spend in recession results in market share loss as the economy recovers. “Whether in traditional or new media the power of advertising remains strong. Companies maintaining and increasing their ad spend despite recession have grown both enterprise and brand value significantly and vice versa,” he points out. Clearly, for American behemoths who want to increase their share of the overall market pie, it is indeed the best of times and perhaps also the worst of times! Charles Dickens would surely be smiling benignly from up there!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
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4Ps Power Brand Awards 2007
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IIPM Ranked No. 1 B-School In Global Exposre - Zee...
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Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

“Technology can convert a window shoper into real shopper”

IIPM, GURGAON

What role does technology play in the retail industry?
Technology is important in every industry, but in the retail industry it has its own significance. Retail is all about consumers, where buyer needs the right information at the time of purchase and that’s possible only with the proper technology in place. Moreover, technology enhances the impulse buying behaviour of the consumer very radically. Interestingly, technology has the power to convert a window-shopper into a real-shopper.

What is your company doing for the retail industry on the technology front?
We started in the year 2000, by providing the digital signage technology to the industry and as the time passed by, we went more inside the industry. Today, we are very much into the industry & providing many new technologies to the industry. The future really lies in wireless technology for the retail industry.

Where does technology play a vital role in the retail industry, back-end or front-end?
Technology is equally important in both. While technology in the back-end sends information across from back-end to the front end, at the front-end it helps in retaining information and passing it on to the consumer.

India has already seen a wave of retail growth in the urban parts of the country and market experts are now expecting the same in rural India. Do you agree?
Certainly yes! And it’s because of the simple reason that if you notice the efficient broadband usage happening in the rural part of the country, there is definitely a tremendous scope for retail to grow in rural India. However, there’s a need to make the rural customer aware of the same message that has already been given to urban consumer and technology is very well capable in doing the same.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

HE'S GOT THE 'ZEEL'

IIPM’s 36th Glorious Year of Academic Excellence

You won’t find TV sets & newspapers flooded with his pics, for he believes in keeping a low media profile. Punit Goenka shares Zee’s future strategies with Pallavi Srivastava

Often theorists accuse second generation entrepreneurs in India to be wealth destroyers. But media shy Punit Goenka, son of Zee honcho Subhash Chandra, is an exception. Ever since he joined the group’s entertainment bandwagon (Zee Entertainment Enterprises Limited - ZEEL) a few years ago, his mere presence has put the media conglomerate on a growth trajectory. What makes Goenka tick and what’s next on his agenda? To find out more, let’s dive straight into this interview with the ZEEL CEO. Up close and personal, he reveals all... or most of it anyway :-)

When you first joined the Essel Group way back in 1995, what was on your mind?
I came with just one thought in my mind that there is nothing to lose and there is only one way to go and that was upwards.

What has helped Zee TV get its feet back in the channel race?
The factor that enabled Zee TV to come back was that we connected strongly with the viewers. My mandate is to have a world-class organisation and a leader in the media and entertainment genre. Our subscription revenue continues to grow at approximately 25% year-on-year. Advertising revenue will also grow significantly and we will continue to grow more than the industry growth.

What will be the strategic thrust at ZEEL for the next few years?
The priority area for ZEEL in the coming times will be the movie business; children’s genre – be it content creation, licensing and merchandising or other similar initiatives; niche content and enhancing the current portfolio of Zee Group on television.

What are your plans for the movie production business of the group?
We will constantly evaluate all the proposals that come our way. Be it for the crossover films, niche films or experimental films, we will continue to evaluate everything. However, I know the film market in India the best and that is where our focus will be, to start with. We will be producing a complete package of films – be it big-budget films or otherwise. We will also try to de-risk the model as much as we can. There are already eight to nine films that are under production.

Are you looking at any PE investment for your film production and distribution business?
We have the approval of $200 million to be spent over the next three years on this. But the capital structure is not final yet. Going to AIM, London is also an option. But how much will we raise from there and what will be our contribution to it are some of the details that are currently under consideration.

What are your strategies for your existing portfolio on television?
We are putting continuous effort to improve and enhance our current portfolio on TV. We will be No.1 or strong No.2 in all the categories where we are present. There will be a lot of new programming initiatives on Zee TV. I confess, some of the earlier programming initiatives like Rock-N-Roll Family on Zee TV did not get the necessary ratings. But we are constantly striving to create content for the channel. The hugely popular show – SaReGaMaPa – is now back on Zee TV after a much-deserved break. We are very excited about it.

What are your plans for niche content production on the television?
We are currently evaluating the production of niche content for our television business. I have got the approval of the board to launch a Golf Channel. It will be named TEN Golf. We will launch it in next two months.

How will the current slowdown of the Indian economy affect the media industry?
In case of a slowdown or a recession, the media industry always witnesses an upturn at least in the short term and mid term. It is bound to happen. In fact, it has already started with key sectors like telecom, DTH, et al, spending heavily in media. The reason is simple, when the economy is slowing down people try to sell their products harder. There is a lag period currently, if within an year’s time things turn around nobody wants to wait till then. This always happens in the beginning of a slowdown.

What is the best professional advice that you have gotten so far?
The best advice that I have got in this media business so far is that it’s far better to be profitable than to be playing the channels share games. Therefore focus on the market and focus on the investment, which you can encash. Blindly spending money won’t help anybody. This valuable piece of advice, which has helped me a lot was given by my father.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)

4Ps B&M’s Pawan Chabra analyses why ‘Fly’ clicks...

IIPM : EXECUTIVE EDUCATION

What really makes a new brand take-off in a market, is it the unique brand positioning or brand equity? 4Ps B&M’s Pawan Chabra analyses why ‘Fly’ clicks...

In the concept of branding, brand association is perhaps one of the most important components worth considering. They say that if the consumer doesn’t know or trust your brand, he will simply not buy it. With a total disrespect for this often stated branding principle, one mobile handset brand has emerged from the ashes of oblivion and has suddenly rendered every thing taught at traditional branding schools, irrelevant.

Launched in June 2006, Fly (the flagship brand of Meridian Telecom) currently holds around 6% market share in the GSM handset market. With a turnover of around Rs.210 crore in the last financial year, this handset maker is aiming to touch Rs.800-1,000 crore by the end of this financial year. As its USP, Fly is known to come out with spectacularly sleek designs at affordable prices. Its unique positioning has made this brand very recognisable by the Indian consumer and its market share is being rapidly gained. “The USP of Fly is that, we follow a very selective approach towards the selection of handsets,” asserts Rajiv Khanna, CEO, Fly Mobile. Fly is primarily focusing upon the in-store branding exercise and its apparently paying off well. According to Khanna, “The company spends huge money on the in-store advertising just because of a simple reason that a buying decision is made inside the shop.” Fly strategists believe in fighting it out where the real action lies, rather than secondary mediums like the idiot box. Fly aims at attaining a market share of over 6.5% - 7% by the end of this financial year.

However, keeping in mind the immense competition in the handset market (both from branded and unbranded handset front) reaching the aimed targets will not be a cake-walk for sure. As per the industry experts, more players are expected to hit the Indian market in the coming times and the market will eventually turn out to be more competitive than ever before. Also, the existing players are quick to bombard the market with the latest handsets, which are high on brag value. Keeping the current dynamics in mind, Fly will have to do a lot of hard-work on paper as well as on the field. Interestingly, in order to side up a sizable business from jointly branded products, the company plans to come up with more handsets with aspirational tags like Tag Heuer, Levi’s and Yamaha in the coming times.

On a positive note though, according to some experts, Fly may actually survive the onslaught of other dominant players simply because of its unique distribution model other than its marketing and branding exercises. Fly hired around 1,000 employees some time back for distribution of its handsets, eliminating the middle men and is now directly in touch with the retailers. “We have a one of its kind distribution model as we know the retailers personally,” states Khanna. Moreover, campaigns like ‘Think Slim’ and ‘Wear it how you like it’ have made this brand from an- also runner - to a -well-known brand- in the Indian market. Carefully chosen brand ambassadors (Malaika Arora Khan and Ishant Sharma) deliver the core values of the company to woo the Indian consumers and the strategy has proved to be well thought out.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM’s 36th Glorious Year of Academic Excellence
IIPM, GURGAON
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)