IIPM NEW-DELHI

Saturday, March 12, 2011

WILFRIED AULBUR, MD, MERCEDES-BENZ INDIA

What kind of expansion plans do you have for this business?
We have announced a rollout across four locations in the Indian market in the first phase, but we are aiming to take this venture to close to twelve locations by the end of December 2010. The company expects that close to 10-15% of its sales volumes will be contributed by second-hand cars by 2011.

Unorganised channel remains the biggest challenge for the industry’s players, who are trying to establish authorised pre-owned car arms in India. How do you plan to tackle that?
Close to 90% of the total sales that take place in the second hand car market happen through the unorganised route. As far as the unauthorised dealers are concerned, a consumer who is investing a huge amount of money to buy a Mercedes, will like to buy it from the authorised channel. But there many one-to-one deals that also happen in the Indian market. However, we will make the consumer aware of the importance of the authorised channel and will try and take some significant amount of business away from the unorganised sector in the domestic market.

But BMW announced its plans to enter the used car business last year itself. So have you lost out on the opportunity to become a first mover?
Truly, I don’t know what BMW had announced. But even if BMW had not launched its second-hand car arm in India so far, we would have! It was just an announcement from BMW, while we have already entered India with a second hand car arm.

BMW even announced its plan to launch a car financing arm. Aren’t you planning something along those lines?
We are planning to open our own car financing arm, but the proposal is still under consideration and it will take some time.

BMW aims to first tap the metros with its finance arm. Are you also looking at Tier I locations?
No. We will announce a national roll-out, but there is still some time left before we actually go ahead with it. 70% of our sales come through the financing route, and therefore it’s a very lucrative opportunity to tap consumers across India.

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 B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

Thursday, March 10, 2011

ARCH RIVALS STAND UNITED FOR ASSOCIATION

Leading Indian non-alcoholic beverage makers like Coca Cola, PepsiCo and Dabur among others have joined hands to form the Indian Beverage Association (IBA). This move albeit coming late despite the beverage industry forming a huge part of the overall Indian food sector, is aimed at putting up a united stand to the policymakers and government regarding regulatory frameworks and legislation. Above all, the IBA would serve as the platform to market the industry as a manufacturer and marketer of quality products adhering to the highest international standards to be ready for the kind of controversies as those that erupted some years back (related to pesticides present in soft drinks). The Indian Soft drinks Association would also be a part of the IBA. It is being set up on the lines of the American Beverage Association which represents producers, distributors and supporting industries for soft drinks and juice makers. IBA will be leveraged to increase the market share of juice and related products, apart from supporting the framing, development and dissemination of standardized best practices with regards to quality in manufacturing, packaging and other environment and health related issues. Companies that have currently subscribed to the association include Dabur, Red Bull India, Jain Irrigation Systems, Tetra Pak India, Pearl Drinks, Bengal Beverages, Coca-Cola India and PepsiCo India Holdings while companies like Parle Agro, Amul and Godrej are likely to join soon.

Thursday, March 03, 2011

CELEBRITY ENDORSEMENTS

But then, for a starter like Wynn Telecom, the approach had to be and is different from that of Micromax. Explaining Wynn’s reasons for signing not one but two celebrities, Bipasha Basu and Saif Ali Khan, Naved Chaudhary said to 4Ps B&M, “Anybody can have celebrities, but the key lies in how you are utilising the same. We wanted someone who can cut across masses and classes simultaneously and still have a mass appeal. I also need to look at my marketing communication, and ensure that the celebrity should not over shadow the brand.” As per him, the choice was made bearing in mind not just the current product portfolio, but also the future line up.

Shashir Devsane, Executive Director, Karbonn Mobiles, agrees with Naved that the key lies in utlisation of the celebrity and there is nothing to be gained by just being a part of the herd mentality. “At Karbonn, the idea is always to be a market leader and we have demonstrated the same in the past. This may come with periods of silence and we are ok with the same. But when we do something it should be something that we believe whole heartedly and be the trend setter,” he avers.

However, the question that needs to be answered here is that will getting big celebrities alone help these companies lift their brands to the big league of the business or there are other ingredients also?

For most of these players, getting a celebrity is a way to announce their arrival to the notable names at the market place. But then they must understand that once they have entered with a bang, they need to carry on in the same manner. This means they have to continue to build themselves for sometime with help of big events, campaigns and so on to stay alive in consumers’ minds till they establish themselves with a strong foothold. Moreover, as these players are looking forward to the lower segment (Rs.1,500 to Rs.2,000), which represents almost 50% of Indian hadset buyers (Media Tek India survey), to create volumes, association of a celebrity can be a great help in catching eye balls and increase recall value for the brand post the initial phase too.

And as the guide book on marketing for dummies goes, in India, it’s not just promotion that is enough; another equally critically element is to ensure that the product is available till the last mile. In the lower priced end of the market, most of the times, the choice of the consumer can be influenced simply by availability. But all said and done, we come back to the initial question. Would you buy a mobile simply because Bipasha says you should? Umm, for Bipasha, we’d do much more :-)

Monday, February 28, 2011

SEQUELS – STIR OR NOT?

The recent HCL ad on television is being taken as another sequel in the series of HCL advertisements that show a ‘know-all’ Mr. HCL and a ‘specy not so geeky’ banker. This puts forth a point to ponder. The trend of making sequels is swiftly passing over from cinema to advertising. But what is it doing to the creative meter of advertisements? Is it the lack of innovation on the part of ad makers that we get to see the same characters and the same plot being taken further. No, is the answer. “It has got nothing to do with losing ideas. In fact, sometimes, they don’t even think of an ad as a series of ideas. Mr. HCL sure wasn’t seen as a sequel. It was made into a sequel because the characters and the plot worked for the brand,” says Amitava Mitra, COO (North), Percept/H. Does that hold true for every ad sequel in the world of advertising? “If you take Maggi Ketchup ads,” says Amitava, “they were meant to be a series of ads on the same plot and with the same characters 15 years ago as well, because it was thought that way. Therefore, it all depends on the company’s strategy. If the company gets a ‘campaignable’ idea, it sure takes it forward.” Viewers like Prashuka Jain, a CA by profession, prefer sitting on the fence, commenting that sequel ads as well as variety are preferred. And our call? Well, we’re incorrigible romantics; we love to love them (read the First Cut story in this issue on the Fevicol sequel ad)

Thursday, January 13, 2011

“INDIANS WORRY ABOUT SECURITY, BUT DO NOTHING!”

While Indian consumers are still to wake up to their safety needs, Godrej Security Services (GSS) has vowed to establish a name for itself in the security industry of the country. Mehernosh Pithawala, GM, International Business & Marketing Communications, GSS, talks to 4Ps B&M about how the company plans to move up using its marketing initiatives.

Branded security is still at a very nascent stage in India. But Godrej Security Solutions (GSS), a division of Godrej & Boyce, and a part of $2.6 billion Godrej group, is eyeing to build up on its first mover advantage to become a Rs.1,000 crore company in revenue by 2014. In an exclusive interview with 4Ps B&M, Mehernosh Pithawalla, GM, International Business & Marketing Communications, GSS, discusses about how he is planning to make this dream come true.

Do you feel that the Indian consumers are ready for such branded safety that comes with a high cost attached to it?
Indian market is growing and so is the need for security. With the proliferating crime scene, the need for security solutions is also increasing. Moreover, today while consumers are becoming more aspirational and spending heavy amounts on the luxuries like latest TV sets, ACs, Music systems, laptops, mobile phones et al, there is a constant fear in their minds that they are being watched. Thus they need to protect their valuables and loved ones. Talking about their will to pay for the cost attached with such security system, when a consumer doesn’t mind spending Rs.70,000 on a TV set or other such home luxuries, he also would not mind investing another few thousands to protect it. Also I must say that our products are priced to suit the requirements of various security needs and budgets.

You yourself believe that the Indian consumer is worried about safety, but ends up merely expressing anxiety than taking action? What plans do you have to convert that anxiety into action?
Yes. I believe that the Indian consumer is very much worried about the safety, but there is lack of action. Take an example of the Mumbai terror attack. Post attack, we held meetings and rallies, we lighted candles and then went back to our lives normally. No action was taken in terms of personal safety and security. We behave the same way when it’s about a burglary that takes place next door. We see that people remain cautious for a few days and then forget the whole episode without actually taking any action to avoid such a thing from happening in our life. Hence we have initiated this campaign “Musibat bataa ke nahi aati” (Trouble doesn’t come announced) to increase public awareness. The campaign shows trouble in the most unique way, something very unheard of. It provokes the consumers to sit back and think and invites call for action. We are also organising a unique activity called the “Break IN Challenge”. This takes cues and insights from our daily lives and security practices and replicates them in the form of a game. Apart from that, we have been participating in a lot of security conferences and have proposed to set standards in this industry.

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

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting