IIPM NEW-DELHI: June 2008

Monday, June 23, 2008

Nokia gets a battering over faulty batteries

The BL-5C battery recall is not only costing

Nokia a lot of money – it’s bound to have a negative impact on the image of the brand that enjoys an almost 70% share in the mobile handset market in India. (See the 4Ps B&M Cover Story on product recalls in this issue of the magazine) Almost six million complaints have been registered by Nokia in India; 5% of these will have to be replaced. Each battery costs around Rs.700 – or $17; in all, about Rs.210 million or $5.1 million is going to be spent by Nokia in India to replace the BL-5C batteries. Earlier, Nokia had committed to replace the BL-5C batteries worldwide, admitting that manufacturing defects were leading to overheating of the battery while charging. The defective batteries were manufactured by Japanese company Matsushita, between December 2005 and November 2006, and were used to power more than 50 Nokia models. Some experts feel that by offering to replace the batteries (before the matter got out of hand, that is!), Nokia has done good damage

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Wednesday, June 11, 2008

The long & short of it

So t

hat was about the year bygone, what’s in store for the coming year. Coming back to the point of a possible turn in business cycle; what are the challenges that await India Inc. and what’s in store for individual investors in the coming financial year, considering that all hell has already broken lose, from inflation to rupee appreciation, dwindling stock markets to a slowdown in lending. While there a few sectors that have underperformed, there are some which have scored well. Sectors such as cement, banking and real estate, which have trailed Sensex in the past few months offer a good investment option for three to six months. All the sectors mentioned above are fundamentally strong, but have suffered because of inflation. Once price concern eases, which most analysts feel will happen soon; these are the sectors which will rally the most. The current valuations of banking, cement and real estate is significantly lower and are an attractive buy at the current moment. According to Shubhada Rao, Chief Economist, Yes Bank, “Higher inflation, inflationary expectations and elevated levels of monetary parameters prompted the RBI to tighten. Going forward, we believe that interest rates are likely to stabilise in Q1-FY08. With inflation expected to tread lower towards mid-May, pressure to tighten interest rates is likely to alleviate.” So banking could yet be a prize pick for the individual investors. Rajesh Agarwal of CD Equi search is of the view that one should also continue holding the cement counters. “I see the valuations to be attractive on the whole pack, lot of cement counters have corrected almost 50%. The companies came with good set of numbers, and with the kind of construction and real-estate boom we are witnessing in India, I don’t find any problem with the industry as such.” As the Sensex is slowly and steadily moving back towards initial highs, there are quite a few scrips that are still low at valuation. Go long on these sectors (stocks) in the shortest possible time and keep the show going!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Friday, June 06, 2008

LEVI’S

Levi’tating to past glory? Or revving it up in the Indian market...
Yes, yes, we know, John Abraham is the

first Asian model for Levi’s, and having Shah Rukh and Bipasha endorsing the brand only adds to its Indian charisma and appeal. But if we were to tell you that the Levi Strauss pair of jeans was created by a Bavarian with the same name in 1853, would you believe us? Well, whether you believe it or not, the US paten the received in 1873 for blue jeans has stood the test of time… well almost, let alone the drop in revenues recently despite a restructuring exercise. In India, after suffering a case study of a failure due to its exorbitant pricing, Levi’s t u r n e d around innovatively by introducing the low priced Signature range, apart from the Dockers casual series, Vintage clothing etc. Levi’s now has a target of opening up almost 150 franchisee retail outlets in India every year; and will also sell through hypermarkets, for which they’re already in advanced talks with Reliance, Bharti-WalMart and the Birla Group. Will they succeed? Considering that Levi’s products now sell at a price range starting from Rs.199 going till Rs.899, one doesn’t need to ask John Abraham for the answer, eh?

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Thursday, June 05, 2008

JOHNSON BABY CARE

This is no kidding... Johnson Baby Care still rules the world
Nobody understands your baby’s skin better th

an Johnson’s Baby Care, the world’s most trusted brand amongst parents. With over hundred years of expertise, Johnson’s Baby Care goes together with very special moments you spend with your little one. The company is entrusted to endow with innovative special products for its tiny tot consumers. Among its huge bouquet of products, Johnson’s baby powder is one of the most successful brands worldwide. Also, ‘no more tears formula’ of Johnson’s baby shampoo has been one of the most successful advertising campaigns by the brand. The key element to the success of the Johnson’s baby brand is the high-quality; elaborate range of products which it has under its umbrella for quite sometime. However, the association of the brand with sundry healthcare experts and support of the professional community through Professional Sponsorship Programmes hasn’t been that successful for the brand. Johnson & Johnson Professional Educational Services contributed marginally in parent awareness like distributing brochures, wall charts and video to help mothers and caretakers bring up their child more valuably. Yet, the brand’s promotion through competitions like “Johnson’s baby of the year” helped the top line significantly. Overall, Johnson’s Baby dominates the baby care product segment around the globe and most significantly in every parent’s heart.

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Source : IIPM Editorial, 2008

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

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Tuesday, June 03, 2008

L’OREAL

L’Oreal launched a new shade to celebrate the Abhi-Ash wedding, but the pricey image stays

What’s common between Garnier, Maybelline,

Lancôme, Ralph Lauren, Cacharel and Matrix is not only their standing as the one of the most distinguished brands of the world, but also that all of the are from one stable – L’Oréal. L’Oréal’s sojourn to success started in 1907, when a young French chemist, Eugène Schueller, crafted a safe hair colour recipe. Years later, bringing a haircolour, other than black, for the first time in India was perhaps the only hurdle it needed to cross to root itself deep into the market! Through its range of products and heavy publicity, L’Oreal has managed to uproot Lakme from its once enjoyed monopoly of the Indian cosmetic market. Even in the shampoos and conditioners segment, its brand Garnier is giving well established brands like Sunsilk, Clinic Plus, et al tough competition. The cosmetics major tied up with Don and the release of the film saw Kareena Kapoor shaking a leg to Yeh Mera Dil in the L’Oreal ad. Despite the headway, it’s time L’Oreal broke that pricey and therefore un-accessible image for the mass (and not only the class) to go head over heels.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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