Flaunte' September 2013 by Flaunte'

EDITOR’S DESK Dear Readers, After the grand celebration of Dussehra, we welcome you all with full vigour and zest to our next issue. It gives us immense pride and delight to share the success story of our magazine. The magazine is sent to more than 2000 professionals and as many as 150 organizations namely Godrej, Sahara Pariwar, Amul, and many more. We are very much obliged for the love and appreciation you guys have bestowed upon Flaunte’ in the recent few months. As a matter of fact, the magazine has managed to garner near about 800 likes on its facebook page in a very short span of time and it is there on Google too. It has been one of the most searched magazines on issue.com with close to 5000 impressions. Coming to the edition of this month, we have introduced ‘Niche Marketing’ as the Cover Story, ‘Frankfurt Auto Show’ as the Special Story and a unique initiative by Asian Paints ‘Har Ghar Kuch Kehta Hai’ as the First- Cut. We are pleased to share that we have got articles from more than 50 participants of other B-schools. Further, we would like to congratulate the winner of our ‘Best article of the month’ writing competition: Seerat Jangda-IIM Lucknow. Let us know your thoughts and be sure to come visit us at www.facebook. com/FlauntNDIM and www.twitter.com/FlauntNDIM for more of the latest integrative marketing news and stories. Keep Reading! Keep Liking! Team – Flaunte’ Markomania – The Marketing Club New Delhi Institute of Management 2

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Special Story:Frankfurt

Auto Show 2013

CONTENTs

Cover Story: Niche

Chanakya Niti:

First Cut: Asian Paints – ‘Har

Mythological Management Lesson: Lord Ganesha (19)

Marketing(14)

Ghar Kucch Kehta Hai’ (10)

Nirma (25)

Snippets (22)

Biz Quiz (21)

Articles (28)

VISITOR’S OPINE @ NDIM

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L A I C E P S Y R O T S 4

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he IAA 2013 is an exciting automobile fair which is well known to all. It is the biggest auto fair all over the world. In this year the 65th Automobile fair took place from 12th to 22nd September 2013. This year came most leading brands participated in this exhibition trade fair to show the upcoming features. This show is the biggest platform to the leading car brands to promote their business as well as to maximize the leadership in the world.

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SPECIAL STORY The main features which made this event so popular were the test drive of newly launched cars, the best driver of the Germany award, driving license for children, female arena etc. There were many more events which gave more impact to this fair. There was an auto show where the participants showed their best cars to win the smartest car award. The female arena was to attract the female customer to make them more interested in the world of automobiles. The children between 3 to 13 years old were given license to drive Hyundai's new electrically operated car in all over Europe. These activities were very effective to promote the business in new dimensions. The International Motor Show Cars (IAA) is the world's most comprehensive show of the automotive industry for everybody who develops, manufactures or uses passenger cars. A special feature is the large presence of suppliers throughout the whole automotive value added chain. Over 300 exhibitors from the supply industry are presenting their products.

History: The origins of the IAA can be traced back to more than 115 years. In 1897, 8 motor vehicles were exhibited to the public at the Bristol Hotel in Berlin. From these humble beginnings, a regular exhibition was established. Due to its high visitor and exhibitor turnout, the IAA was developed into a yearly alternating exhibition of passenger cars and commercial vehicles in 1991.

The mind scratchers

In the concept car segment there are 6 companies who participated in this show. The Audi Nanuk Quattro concept car is the highest popularity gainer. Then we can have a glance at the Cadillac Elmiraj which is also a concept car and as per the company it can come in the market by the end of 2016.

The Ford S-Max is one of the concept cars which came from the house of the Ford, the oldest existing brand.

SYNC, new innovation by Ford

A Ford commissioned survey has shown that around 75 percent of Europeans who have traveled with their car abroad in the past five years, the local language is not so dominated to make an emergency call if needed. The new Ford SYNC with MyFord Touch delivers wireless internet access for passengers, supported by an ingenious tablet docking station. New Ford technology will also look after your wellbeing. Fast and reliable assistance in the event of cases are now offered by the new emergency Wizard of Ford in case of an accident, the airbags are triggered and / or the fuel supply to the engine is automatically stopped, and the Electronic Rescue Wizard is activated. It automatically notifies emergency services in the local language and transmitted at the same time along with the GPS coordinates of the vehicle, so the exact location. The Emergency Wizard is part of the voice-controlled connectivity system, Ford SYNC and has a data packet of 26 languages spoken in 40 European countries. Moreover the Emergency Wizard also includes voice control of audio and phone functions, as well as a text-to-speech function SYNC peripheral. With the extensive entertainment features of MyLink, every ride has the potential to become so much more. Youâ&#x20AC;&#x2122;ll find yourself looking forward to the next time you have to get in the car and go. You can even access over 140 channels of commercial-free music, sports, entertainment and more with SiriusXM Satellite Radio. Its technology that will keep you entertained while your hands stay safely on the steering wheel.

Nissan- A race against time

Nissan plans to introduce a "smart watch" that measures the user's heart rate, temperature and other biometrics. It will

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also be able to keep a watch on car data like fuel efficiency and average speed. It was developed by Nissan's Nismo laboratory. They currently capture live biometric and telematics data from Nissan racing cars and their drivers. The Opel Monza concept is another example of the new generation thinking of the R & D departments.

Volkswagen Golf Sportsvan is an excellent example of the concept car segment which is an opportunity for the companies who generally deal with Golf carts, Beach bikes, Desert bikes etc. Volvo, the Swedish brand, came there with the new concept car named Volvo Concept Coupe. This is the augmented product that they are making out in the market in the next few years.

Another feather on the cap of Bugatti

One of the best car manufacturing companies of France is Bugatti. It participated in this show with their new car Bugatti Legend ‘Jean Bugatti’ Veyron Grand Sport Vitesse which is the extended version of the flagship model, Veyron. It is one of the best showcased models of the show. This limited edition Veyron at the price of 2.28 million Euro (13.8 Cr rupees approx.) and has produced only three. The special edition is based on the Bugatti Veyron 16.4 Grand Sport Vitesse, which features an 8 liter, 1,200hp W16 engine. It accelerates to 100 kilometers (62 miles) per hour in 2.6 seconds.

Audi - The German sensation

The leading brands who participated in this fair came with their best products. At first we can say about the most popular German brand Audi who came there with ‘Audi Connect’. Audi connect technologies create a network between the driver and the internet, the vehicle and the infrastructure. With sophisticated infotainment and entertainment functions, Audi connect takes comfort, safety and automotive enjoyment to a new level. This is a unique feature which one can install to enhance the navigation in the congested or heavy traffic road. It also assists the driver to park the car in any parking area all over the world. This navigation system is supported by the Google Earth a new 3D world map. This navigation can also perform their best when the internet connection is very slow. This is also powered by the dedicated Audi support system network which works in every corner of the world. Audi Sport quattro concept is a plug-in hybrid making 700 horsepower and 590 pound-feet of torque. It pulls this power from a 4.0-liter twin-turbocharged V-8 and an electric motor powered by a lithium-ion battery.

BMW - The new Transformer

German brand BMW which came with new equipment BMW Connect Drive. The main feature of the system is that one can operate one’s BMW car with the help of the smart phone. This special application can be operated from every platform through the world. This app also helps the driver as an advance navigation system with auto pilot system in heavy traffic and mainly smooth driving in any unknown places.

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SPECIAL STORY BMW I - The future of urban mobility. Infinite driving pleasureâ&#x20AC;&#x2122; is the central theme under which BMW presents current trends and technical innovations at numerous premieres around the world. This yearâ&#x20AC;&#x2122;s IAA focuses on the BMW i and gives visitors their first opportunity to experience the new BMW i3 on the move. Redefining urban mobility means thinking far beyond environmentally-conscious and agile driving. The result: with its visionary design, the BMW i3 design defines the automobile of tomorrow. Its innovative BMW eDrive power train was designed in the scope of the BMW EfficientDynamics technology and is not only locally emission-free, but also offers an incomparable and nearly silent driving experience. The intelligent BMW ConnectedDrive Services bring you easily and conveniently to your destination. BMW i is a comprehensive and ground-breaking concept for sustainable mobility. It represents visionary electric vehicles and mobility services, inspiring design and a new understanding of premium that is strongly defined by sustainability. And it thrills with its innovative vehicles: the all-electric BMW i3, a locally emission-free vehicle for city driving that is sustainably designed throughout, and the BMW i8 concept as the future of the sports vehicle.

Increasing market penetration of Car2go

One of the best cars hiring company Car2go came there with the new views of car renting process. Daimler pioneered the service in Ulm, Germany in October 2008, where it was developed by one of its internal business innovation units and was first tested exclusively by Daimler employees. As of August 2013, Car2go operates over 8,000 vehicles, which serve eight countries and 23 cities worldwide with over 400,000 customers. It mainly gives the leading cars in rent to the offices as well as for personal uses. It also has latest Ferrari models which mainly hired to shoot various movie sequences. Chairman of Daimler AG, Dieter Zetsche, presents the new S-Class Coupe concept at the exhibition booth of Mercedes-Benz during the Frankfurt Auto Show.

The Lexus LF-NX concept is presented at the 2013 Frankfurt Auto Show.

A Porsche 918 Spyder stands on display at the 65th Frankfurt International Auto Show in Frankfurt, Germany.

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A Ferrari 458 Speciale stands on display during its launch at the 65th Frankfurt International Auto Show in Frankfurt, Germany.

A Jaguar C-X17 is presented during the first press day of the 65th Frankfurt Auto Show in Frankfurt, Germany.

Till now we have talked about the brands that came with innovative technologies, but there were also some brands who presented their new cars in this show. The new Opel Insignia and the Insignia Country Tourer – with their allnew cockpit and the latest infotainment generation – make their world premiere at the 65th Frankfurt Motor Show. The spotlight was on three criteria during the enhancement of the cockpit and infotainment system: clear, simple and thus intuitive operation, individualization of the infotainment offer, and of course a maximum of comfort and safety for driver and passengers, which is increased even more thanks to lowest-possible distraction from road traffic. All while the drivers’ hands stay safely on the steering wheel and their eyes on the road. In the Insignia Sport and Innovation equipment lines, the top infotainment system Navi 900 Europa Touch is standard, while in the Insignia Selection and Edition it can be ordered for 1,200 euros (RRP incl. VAT in Germany). The catalysts There were many equipment manufacturing brands which came to build their relationship with the other automobile manufacturers. The Bosch, Pioneer electronics, Axion, Remus came with the latest technologies which enhances the performance of high end cars. Their main target was fulfilled when Bugatti took The Bosch on board to supply mechanical parts for the next three years.

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sian Paints has launched a TV show ‘Asian Paints - Har Ghar Kucch Kehta Hai’, which aired on COLORS on Saturday 7th September’13 at 6.30pm. The commercial focuses on the joys of homemaking and the emotions attached with homes. The series is hosted by leading TV personality Vinay Pathak and produced by BBC Worldwide India. It will showcase the childhood homes and will bring forth some never heard before stories that have influenced various leading celebrities like Govinda, Waheeda Rehman, Irfan Pathan, Sakshi Tanwar and Ila Irun during their formative years.

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FIRST CUT

Asian Paints has been a pioneer in the paint and decor industry for many years and has been reaching out to consumers to help them express their love for their homes. The tagline ‘’Har Ghar Kucch Kehta Hai’’ tries to bring forth the personality of each home. It shows that every home has a personality of its own and it is influenced by the inhabitants of these homes. The values instilled in them and what makes them what they are, are because of these homes. Small fights, making up with siblings and thus creating joyous moments are what make these homes special. In the fast pace of life we all move on but these homes stay behind withholding numerous stories to tell for generations to come. It targets that untapped segment of the market which earlier did not come within the probable consumer bracket of Asian Paints.

Each episode pays homage to the celebrity's families, their childhood memories and especially to their homes which are responsible for shaping and moulding them into the role models that they are today. Viewers will be able to take a walk down memory lane along with the celebrities and get a glimpse of the memories and childhood experiences that have played a major part in the celeb's lives. The show will feature their family members, childhood friends, neighbours, friendly shop owners, and provide an emotional connect to the ‘Good Old Days’. It will also highlight the humble origins of these stars and trace back to their simple living and resilience to carve a niche for themselves in life.

Elaborating on the show, Mr. Amit Syngle – President , Decorative Business Unit – Sales, Marketing and Technology said – “For these celebrities, their beautiful heart-felt memories have been influenced by the beautiful homes they lived in...’’. The influences have been either simple colour schemes or décors created within these homes, these have created a sense of comfort and security, a safe haven for these celebrities. The company simply aims to celebrate such homes and the memories entwined in them. They have added a special touch by giving a makeover to a room in the homes. Commenting on the show, Raj Nayak CEO – COLORS, said: “Asian Paints - Har Ghar Kucch Kehta Hai highlights the significance of the childhood homes and memories in laying the cornerstone of a prosperous life’’. The series entails the emotional journey that have shaped the lives of some of the country’s most successful individuals. The show’s host, Vinay Pathak, is one of the finest and most talented persons, whose affable style

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promises to create an instant connection with the audience across the country as he delves deeper into the legacy that these celebrities have created for themselves. Conceptualised by Ogilvy India, the creative insight draws from distinguishing a ‘house’ from a ‘home’, which was used to create the original campaign. A house is inanimate, a mere shelter. A home on the other hand is alive, and full of emotions, because of the people who live in it, their interactions, their stories and memories. The new corporate campaign from Asian Paints tells the story of making someone ‘feel at home’. The film takes us through a story of an army captain who decorates and sets up the house to welcome his bride home. In doing that, he has taken special care to make her feel at home by bringing a décor resemblance from her parents’ home to her new home. She’s overwhelmed by her husband’s thoughtful gesture of welcoming her in his life and his home. The show will bring to the forefront some never-heard-before stories that have formed the backbone in the formative years of the lives of today's most celebrated personalities. Asian Paints 'Har Ghar Kuch Kehta Hai' promises to bring to light the first flicker of ambition and true grit of those individuals who have inspired and served as idols for generations to come.

Please visit at https://www.facebook.com/FlauntNDIM to view ads.

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R E V O C Y R O T S 14

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Niche Marketing

niche from a marketing perspective is a special area of demand either for a product or for a service. Thus, competing in a narrowly defined segment of the market with a specialized offering which caters to the needs of that segment is what niche marketing is all about. Simplifying the concept, a niche can be thought of as a section of a large wall left to accommodate only a definite item while the whole wall holds an array of paintings, pictures, mirrors or any assortment of embellishments. But the niche can only hold a smaller and very specific item. So a niche market is the subset of the market on which a specific product is focusing. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.

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COVER STORY Similarly, the â&#x20AC;&#x2DC;marketâ&#x20AC;&#x2122; is analogous to such a wall where multifarious items can be hung for display (to sell). The wall (or market) as whole, displays the items for a broad audience spectrum whereas the niche section will only draw the attention of a few who are interested only in that section. Firms following niche marketing strategy, essentially act as a big fish in a small pond by specializing and gaining expertise in their target sector. The firmâ&#x20AC;&#x2122;s core competencies include expertise and high market share (of a relatively small segment of the market). Thus, competing with such niche marketers is not a viable option for potential competitors. Niche marketing is not a commonly implemented strategy and the term is often confused with one-to-one marketing and/or being a small market player. In that context it should be mentioned that small businesses simply have a small market share in a large segment but niche marketers have a large market share where the segment itself is tight. Most companies, whether big or small, direct their marketing to select niche audiences. Even the country's largest manufacturers target carefully pinpointed market segments to maximize the effectiveness of their programs and often tackle different niches for each product group. 3 Rules for Niche Marketing: 1. Meet their unique needs: The benefits you promise must have special appeal to the market niche. What can you provide that's new and compelling? Identify the unique needs of your potential audience, and look for ways to tailor your product or service to meet them. Start by considering all the product or service variations you might offer. When it comes to marketing soap, for example, not much has changed over the years. But suppose you were a soap maker and you invented a new brand to gently remove chlorine from swimmers' hair. You'd have something uniquely compelling to offer a niche market-from members of your neighborhood pool to the Olympic swim team. 2. Say the right thing: When approaching a new market niche, it's imperative to speak their language. In other words, you should understand the market's "hot buttons" and be prepared to communicate with the target group as an understanding member--not an outsider. In addition to launching a unique campaign for the new niche, you may need to alter other, more basic elements, such as your company slogan if it translates poorly to another language, for example. In instances where taking on a new niche market is not impacted by a change in language or customs, it's still vital to understand its members' key issues and how they prefer to communicate with companies like yours. For example, suppose a business that markets leather goods primarily to men through a Web site decides to target working women. Like men, working women appreciate the convenience of shopping on the Web, but they expect more content so that they can comprehensively evaluate the products and the company behind them. To successfully increase sales from the new niche, the Web marketer would need to change the way it communicates with them by expanding its site along with revising its marketing message. 3. Always test-market: Before moving ahead, assess the direct competitors you'll find in the new market niche and determine how you will position against them. For an overview, it's best to conduct a competitive analysis by reviewing competitors' ads, brochures and Web sites, looking for their key selling points, along with pricing, delivery and other service characteristics. But what if there is no existing competition? Believe it or not, this isn't always a good sign. True, it may mean that other companies haven't found the key to providing a product or service this niche will want to buy. However, it's also possible that many companies have tried and failed to penetrate this group. Always test-market carefully to gauge the market's receptiveness to your product or service and message.

Harley Davidson

Born in 1903, this Wisconsin based American company is a name that needs no formal introduction. Specialists in heavy motorcycles, this company has not only survived but has also seen immense profit even when facing the World War I, the great American depression and the onslaught of light motorcycle manufacturing Japanese

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competitors. Harley does not sell motorcycles, it sells a lifestyle to its consumers who are die hard bike lovers and fanatics. Thus even in the age of superfast bikes like Ducati, Honda, Kawasaki, etc Harley’s heavy and muscular bikes like VRSC V-Rod (2002) worth $16,995 and FLH Electra Glide (1965) worth $30,000 will never lose value to Harley fans even with speed limits of 100 and 70 mph respectively.

Vertu A) B)

Vertu signature cobra Vertu Constellation

British manufacturer Vertu is a prime example of niche marketing with their premium range of luxury mobile phones. Born in the hands of Finnish mobile makers Nokia as a wholly owned subsidiary in 1998, Vertu has maintained its status of producing designer “handmade” phones for the obscenely rich if not filthy rich. The company boasts of a $310,000 Signature cobra phone model designed by French jewelers Boucheron, which is adorned by two diamonds, two emeralds and 439 rubies and only 8 models were ever made. Their latest in line is the Vertu constellation which is a $66000 android phone with a titanium body covered with calf skin leather and ringtones performed by the London Symphony Orchestra.

Toyota – Prius

Toyota, a huge company with a global focus on the auto business, is an excellent niche marketer. They were one of the first companies to realize there was a group of car buyers who would be very interested in environmentally friendly cars. Toyota answered this need with development of the legendary Prius, the first mass production hybrid car. Where other car manufacturers saw Toyota taking a huge risk, Toyota saw it as an opportunity to identify a new niche and establish its brand in that niche. In marketing, it is often the first brand to market, if executed successfully, that can own the niche market with their brand. Once Toyota took the plunge, it pursued an effective niche marketing plan. It didn’t promote the Prius in just any media. It focused on media outlets that were watched, read or listened to by people concerned about the environment. For example, it heavily promoted the car through environmental groups and their publications. As the only game in town at that time, Toyota not only dominated the niche – it was the niche. Today, with increased competition in this niche market, the Toyota Prius is still highly regarded as the niche leading brand.

Nirma

If you are an Indian who boasts of growing up with a television in your home, you couldn’t have missed the Nirma ads stating “Washing powder Nirma, detergent tikia Nirma...”. Thus invariably the name Nirma brings to mind that they sell detergent. What eludes us is, that this Ahmedabad based FMCG company is a harbinger of FMCG revolution in India making detergent a product of necessity to lower middle class and the poor from its previous status of a luxury good. They proved that with right pricing, sustainable demand can be created even in sectors where people might not expect any profit.

Star Cricket

What can a media channel give to a nation where cricket is a religion and Sachin Tendulkar is a God? The answer came in the form of Star Cricket, an offspring of STAR TV and Fox International channels. Born on April 25, 2007, this channel was designed only to cater to the needs of the cricket hungry Indian crowd. This channel airs live as well as prerecorded cricket matches, cricket news updates, talk shows and reality shows 24 hours a day. Thus in the broad field of sports channels, they have found their own niche.

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COVER STORY Alienware

Alienware desktops and laptops are a religious gamerâ&#x20AC;&#x2122;s ultimate desire. Born in 1996 as a subsidiary of Dell computers, this brand is known on for its highly customized uber cool design and hardcore specifications for the ultimate gaming experience in desktops and laptops. Its current laptops range from a starting price of $1099 for a 14 inch M14X and ends at the $4990 18.4 inch M18X with features such as 32GB of RAM, 2 TB hard disk, 4th Generation i-core processors and 4GB of dedicated graphics. Needless to say, if you are not a game fanatic, these products are not meant for you.

The ultra-luxurious Rolls Royce â&#x20AC;&#x201C; Niche Marketing

A Rolls-Royce is a niche vehicle, because it caters to a very specific and limited clientĂ¨le. Furthermore, not only is it targeted towards individuals with robust incomes, but those in particular who are more concerned with luxury than performance.

Britania Nutrichoice

Britannia is a well-known name in the food processing industry and a stalwart in the biscuits sector. But their Nutrichoice product range brought them into the world of Niche marketing. With rise in competition from other biscuit and cookie manufacturers, brittania chose a segment of health conscious snacks for their consumers. The prime example in this case being the nutrichoice Ragi and Oats cookies for the diabetics. This particular range of biscuits are a diabetics delight with no added sugar, cholesterol and the right amount of healthy ingredients and fibres to keep blood sugar levels in check.

Pantaloons aLL

Obesity can be a leading cause of low self-esteem and to add to their burden, plus sized people have to go through the perilous task of looking for the right sized clothes. When mainstream apparel brands mainly focus on the slim, the plus sized are left with limited choices. Retail brand Pantaloons sought to capitalize on this issue and they did.

The clothing line aLL by Pantaloons is an initiative to target only plus sized consumers with various fashionable choices and modern trends, thus profiteering from the fact that obesity is directly related to the prosperity of the demographics.

Dilip Chhabria's Focus on a Niche Market

India's acclaimed car designer, Dilip Chabbria established Dilip Chabbria Design in 1993. Initially known as the country's best supplier of car accessories, it went on to be one of the best custom-design companies in the Indian passenger car market. A niche segment, its customers were ready to spend over 50 lakh rupees. The company soon bagged orders from foreign moviemakers, celebrities and Hollywood. Meanwhile, the Indian passenger car market witnessed tremendous growth in the small car segment. But Dilip was reluctant to enter this market like other major players.

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Mythological Management Lessons Lord Ganesha

anesha's big head inspires us to think big and think profitably; the big ears show openness to new ideas and suggestions; the narrow eyes point to the deep concentration needed to finish a task well; the long nose encourages curiosity and learning. Ganesha is known throughout the universe as the fountainhead of wisdom and courage. No new business or industry is started without a prayer to him. Prayers to Ganesha precede every Hindu religious ceremony. Travelers on lonely roads pay homage to the elephant god at roadside shrines; trusting Ganapati to remove every danger from their path. Symbols have been one of the most effective ways to communicate ideas since the dawn of civilization. Let's look into the symbols of Ganesha to get our managerial inspirations.

Presenting a good front

Ganesha's excellent image took thousands of years to evolve. He is believed to embody Om, the sound from which the world was created, and Yak, the first word. Early representations of Ganesha show an elephant-headed warrior with the beard of a rishi, a sword and snake in one hand and a quill in the other, with a trident to one sideâ&#x20AC;&#x201D;the embodiment of both courage and wisdom. Later, in the Deccan region, Ganesha was pictured with a sheaf of corn and sugarcane, with a mouse as his vehicle. Invoking him made it possible for farmers to eradicate their worst problem, namely rodents, ensuring a bountiful harvest. Ganesha is thus the guardian and protector of success, in this case, a good harvest.

Inspiration for managers

We have found inspiration in Ganesha's wisdom and judgment, his ability to solve problems and remove obstacles, his capability as a communicator, his goal-orientation and his adaptability. These qualities were much needed by our forefathers as they advanced from hunters to agriculturists. More than strength, they needed wisdom and judgment to survive. These qualities are no less at a premium today, especially for managers. A Ganesha manager likes people, all kinds of people with their diverse skills and aptitudes, and he likes to work. He enjoys bettering his records. He is forward-looking, with clear and friendly eyes. He likes to set goals and solve problems, and because he is stimulated by this challenge, he becomes better and better at it. He likes to help others realize their goals. He nurtures his own understanding and checks discrimination

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by reflecting on his own and others' experience. He always operates at 150 per cent of capacity; he knows that's what keeps him happy and growing.

Removers of Obstacles

Ganesha, son of Shiva and Parvati, is Vigneshwara, the Remover of Obstacles. Ganesh is the fountainhead of innovation and dispeller of obstacles.Ganesha is widely revered as the Remover of Obstacles and more generally as Lord of Beginnings and Lord of Obstacles as well as patron of arts and sciences, and the diva of intellect and wisdom.â&#x20AC;?

Symbol of wisdom

The elephant head is the over-seeing, all-seeing, eternal witness, the unmanifest supreme. Below the head is the belly, the symbol of the manifest, the mortal. Ganesha is the lord of all, manifest and unmanifest. The memory of an elephant is, of course, proverbial. Ganesha's twisted trunk represents the zigzag path to wisdom. It reminds us that there is no direct path, that we must turn right and left in the search for truth. The elephant ears are like winnows that separate the wheat from the chaff. All experience must be subjected to scrutiny to determine what is essential and what is nonessential. This is a critical aspect of judgment. The discerning and the wise do what they must and let the rest be. Ganesha's endearing potbelly is equated with space; it is vast enough to hold all wisdom and all life. Gentle and harmless, he uses his great strength only when provoked. Good managers can draw a lesson from this.

Goal - Oriented

The elephant seems to swerve as it walks, but keeps to the path. He makes it to his goal with unhurried grace. Ganesha rose from the ranks to hold high office. He was in the right place at the right time. Ganesha's vehicle, the lowly mouse, stands for the dark, fertile forces of the earth into which it burrows, avoiding light. As a recurrent threat to the harvest, it had to be tamed. But the rat also represents swiftness of movement. He burrows with his sharp teeth, chews through anything, and squeezes out of the smallest hole. In this way, he proves an excellent transport for Ganesha, who has to be everywhere and anywhere at short notice to remove obstacles.

The writer and communicator

It is believed that Ganesha penned the Mahabharata. The sage Vyasa, under instructions from Brahma, dictated the Mahabharata to Ganesha. Vyasa was to dictate without pause and Ganesha was to understand every word and thought and its implications before writing it down. In the process, Ganesha honed his intellect and became wiser. There is a lesson here for managers: as speakers or listeners, we must understand and cogitate deeply on the implications of spoken and written words. The Mahabharata, or for that matter any important document, should not be read in a hurry. To benefit optimally from the Mahabharata, one should proceed in slow and deliberate steps, ensuring complete comprehension and sustained reflection at every stage. The ability to write is one of the basic traits of a good manager. Good writing and good communication is possible only when thinking is clear and understanding deep.

Quick-thinking problem solver

Once Shiva and Parvati acquired a pot containing the nectar of supreme knowledge. Both their sons, Kartikeya and Ganesha contended for it. The hapless parents set up a competition. The rules read that the first one to go around the world seven times would be declared winner. Kartikeya, a man of action, instantly started circumambulating the world on his peacock. With a mouse for a mount, Ganesha needed to do some quick thinking. Using the mental library in his big head, he analyzed the situation, did the SWOT (strengths, weaknesses, opportunities and threats) and realized that he was constrained by his bulk and slow mount. For inspiration, he went through the Veda floppies in his mind to arrive at an essential truth: one's parents are bigger than anything else in the world. So, Ganesha went around his parents seven times and claimed the pot of nectar. Due to his unique form, Ganesha could absorb symbols over the centuries. Choosing adaptability as a way of life, he acted, observed, reflected and updated his image. When he found a better way, he adopted it. A god who changes with the times is a good one to emulate.

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BIZ QUIZ

Q1. Which Indian company uses the under ocean cable of Airtel to connect with Singapore? Q2. Which famous Indian watch brand introduced the perfume named Skinn in September, 2013? Q3. Who is this personality?

Q4. Identify this logo

Q5. Identify the company.

Q6. What kind of marketing is it?

Q7. Identify the missing figure.

Q8. Which company’s yogurt products were mainly developed and focused on women community? Q9. A strategy which talks about “Forming unchallenged markets and competition unimportant” is called? Q10. Connect the pictures and identify the advertisement character?

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SNIPPETS Apple launches two new iPhones

Apple has launched two new iPhones - one a regular iPhone called iPhone 5S, which is the successor to iPhone 5, and the other, a low-cost phone called iPhone 5C, that is aimed at emerging markets like India. The iPhone 5c has a 4-inch Retina display and is powered by Apple's A6 chip. It also has an 8 megapixel camera, live photo filters and a rear cover that lights up. Moreover it will come in five colours - yellow, pink, green, blue, and white. The iPhone 5c will cost $99 for a 16 gigabyte model and $199 for a 32 gigabyte model with a twoyear wireless contract. The Apple iPhone 5c will come with more LTE bands than any other smartphone in the world, says Apple. The iPhone 5c also includes a new FaceTime HD camera. Apple says the iPhone 5c is made of hardcoated polycarbonate body with a steel reinforced frame for a sturdy feel. Apple has also created soft, matte, microfiber-lined cases for the iPhone 5c. The iPhone 5S is everything it was made out to be. It will be available in three colors – silver, gold and slate.

Parle re-enters in cola market with Café Cuba

Two decades after Parle Agro hived off its carbonated soft drinks portfolio, Parle Agro announced its reentry into the Rs 15,000-crore cola market early next year with the launch of Cafe Cuba, a coffee-flavoured carbonated drink. Parle Agro had sold its popular and iconic soft drink brands namely Thums Up, Limca, Gold Spot and Citra, to Coca-Cola in 1993 and had also signed a non-compete agreement for ten years. The company plans to roll out Cafe Cuba by January or February 2014 and is aiming to garner a market share of 7 per cent within the very first year of its launch. Primarily targeted at the youth, Cafe Cuba will be priced at Rs 20 for a 250 ml can and Rs 15 for 250 ml in a PET bottle.

Nokia Launches Smartphone with 41 MP camera in India

Finnish handset giant Nokia, launched Lumia 1020, smartphone which comes with a 41 megapixel camera, the highest megapixel count sported by a mobile phone. Lumia 1020 is available in the price range of Rs.47,00050,000. The phone comes with dual-capture feature that allows a user to take a high resolution 38 megapixel image, while also creating a 5 megapixel picture that can be shared on social networking sites. Further, the device comes with ‘Nokia Pro Camera’ application, which allows users to click pictures first and then zoom later to get their desired shot.

Flaunte' September 2013

NDIM

Samsung Galaxy Note 3 and Galaxy Gear smartwatch launched

Samsung Electronics Co Ltd unveiled a smartwatch that works as an accessory to its market-leading Galaxy smartphones, with a small screen offering basic functions like photos, hands-free calls and instant messaging. The world's top handset maker hopes the Galaxy Gear will boost the appeal of its range of Android-powered smartphones, as it battles to maintain its supremacy in the rapidly saturating high-end mobile market against arch rival Apple Inc. The smartwatch features a 1.63-inch (4.14-cm) screen as well as a basic camera, and will connect to Samsung's latest Galaxy Note 3 smartphone via wireless Bluetooth technology. It will make calls, display messages, record videos and snap photos, all while the user's phone stays in their pocket or handbag.

The Samsung Galaxy Note 3 features a 5.7-inch full-HD Super AMOLED display. It comes in two variants: the LTE-variant powered by 2.3GHz quad-core Snapdragon 800 processor, and the 3G (HSDPA) version powered by a 1.9GHz octa-core Exynos processor. However, the company will be launching only the 3G variant in India. The Galaxy Note 3 includes 3GB of RAM, and sport a 13- megapixel rear camera alongside a 2-megapixel front camera. The Note 3 is powered by 3,200mAh battery and runs on Android 4.3 Jelly Bean. The Galaxy Note 3 is expected to be launched in three colours in India- Black, Pink and White. Meanwhile, the Galaxy Gear smartwatch which is the first wearable tech device from the South Korean major. It features a 1.63-inch (4.14 cm) OLED display and can make calls, display messages, record videos and snap photos with its 1.9 -megapixel camera.

Killer creates 'water saver' denims

Killer has launched a collection of 'water saver denims'. The campaign urges youth to flaunt it. The claim is that it took 80 per cent less water to manufacture each 'water saver' pair. A TVC for the collection created by Grey, shot in Prague, shows a bevy of youth protesting for the cause of saving water and water bodies. To check the protest, a general and his brigade attack them with water cannons. While everybody goes down, one young man walks to the centre of the protest, taking on the water attack. He bends down and folds his denims, revealing a green fold. The moment the green fold appears, the cannons stop spewing water. The general even

takes charge of a cannon himself, but in vain. A super young man urges all to fold up their jeans and ‘show their green side', thereby introducing ‘water saver denims’ from Killer. The campaign saw participants take off their denims, reverse it to show that it was green, and then wear it with the green side up. Here are the print ads from the campaign.

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Flaunte' September 2013

Google and Yahoo gets a new Logo

Google has announced that it is giving the look of its six letters a makeover. In a post on the official Google Search blog announcing an updated Google bar, Eddie Kessler, tech lead/manager at Google, said that Google has "refined the colour palette and letter shapes of the Google logo." The new Google logo will be rolled out across different Google products over the next few weeks. The new Google logo is flatter in appearance and does away with the embossment and shadows, but distinctive colours remain, albeit in slightly different shades. Google has also retained the Catull font for the new logo but as mentioned in the post there is could to be some changes in the letter shapes, but that doesn't seem apparent. Internet giant Yahoo finally revealed its new corporate logo for the first time in 18 years. The new logo retains the original purple color and the all-caps format on a white background, but it does away with the old serif-like font for a sans-serif appearance, distinctively elevating the interior of the letters. An alternate version of the logo includes a white-colored font on a purple background. One of the last changes to the logo was to "tilt the exclamation point by nine degrees, just to add a bit of whimsy". Yahoo managed to turn a simple rebranding into an impressive marketing push by dragging it out for 30 days.

Former Paras Co â&#x20AC;&#x201C; Promoter launches personal care brand Layer'r

Former Paras Pharma co-promoter Devendra Patel is back in the Rs 30,000 Crore personal care market with his new brand Layer'r. His elder brother Darshan Patel's Vini Cosmetics has already launched Fogg, 18+ and White Tone in this space. ParasPharma has a legacy of brands like Moov, Itchquard, Livon and Dermicool.Post his Paras-stint, Devendra Patel has set up a new company called Adjavis Venture Ltd or AVL that aspires to get double digit market share in the Rs 3000 cr fragnance category alone. Patel is running teaser campaigns on television for his Layer'r brand. Leaders in the category are Axe, Wild Stone, while Fogg by Vinni Cosmetics too is doing good, category analysts observe. Devendra Patel along with his brothers Girsh Patel and Darshan Patel created personal care and OTC brands like Moov, Dermicool, Livon and Itchguard over the last two decades that got sold to British consumer goods giant Reckitt Benckiser in 2010.After launching permium range of perfumes and deodorants, Layer'r will introduce skin care and hair care products. Facebook and 6 phone companies launches internet.org to connect the world Facebook has just announced a partnership with Samsung, Ericsson, MediaTek, Nokia, Opera and Qualcomm to launch Internet.org, a project aimed at bringing affordable Internet access to 5 billion people. Internet.org hopes to connect the two-thirds of the world's population (about 5 billion) that have no online access, to give them the same opportunity as the other 2.7 billion people in the world. The companies will work together on data-compression technologies and cheap, high-quality smartphones to make the web cheaper. While it might seem like the whole world is connected, just one-third of the globeâ&#x20AC;&#x2122;s population has Internet access, and adoption is only growing at 9 percent. Internet.org aims to speed up that rate.

Flaunte' September 2013

NDIM

CHANAKYA NITI: CASE STUDY The Nirma Story "" It all started to earn a side income, and at that stage, I had never imagined this kind of success."

- Karsanbhai Patel, CMD, Nirma Ltd.

" Like other FMCGs, we have not concentrated only on marketing strategy. From the very beginning, operational strategy in cost containment, backward integration, economies of scale, innovative production, packaging and penetration schemes have received equal attention."

- Hiren K Patel, CMD, Nirma Consumer Care Ltd. (Nirma's marketing arm)

Introduction

In the early 1970s, when Nirma washing powder was introduced in the low-income market, Hindustan Lever Limited (HLL) reacted in a way typical of many multinational companies. Senior executives were dismissive of the new product: "That is not our market", "We need not be concerned." But very soon, Nirma's success in the detergents market convinced HLL that it really needed to take a closer look at the low-income market. Starting as a one-product one-man outfit in 1969, Nirma became a Rs 17 billion company within three decades. The company had multi-locational manufacturing facilities, and a broad product portfolio under an umbrella brand â&#x20AC;&#x201C; Nirma. The company's mission to provide, "Better Products, Better Value, Better Living" contributed a great deal to its success. Nirma successfully countered competition from HLL and carved a niche for itself in the lower-end of the detergents and toilet soap market. The brand name became almost synonymous with low-priced detergents and toilet soaps. However, Nirma realized that it would have to launch products for the upper end of the market to retain its middle class consumers who would graduate to the upper end. The company launched toilet soaps for the premium segment. However, analysts felt that Nirma would not be able to repeat its success story in the premium segment. In 2000, Nirma had a 15% share in the toilet soap segment and more than 30% share in the detergent market. Aided by growth in volumes and commissioning of backward integration projects, Nirma's turnover for the year ended March 2000 increased by 17% over the previous fiscal, to Rs. 17.17 bn.

A Humble Beginning

In 1969, Karsanbhai Patel (Patel), a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent Powder, and started selling it locally. The new yellow powder was priced at Rs. 3.50 per kg, at a time when HLL's Surf was priced at Rs 15. Soon, there was a huge demand for Nirma in Kishnapur (Gujarat), Patel's hometown. He started packing the formulation in a 10x12ft room in his house. Patel named the powder as Nirma, after his daughter Nirupama. Patel was able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. Thus began the great journey. By 1985, Nirma washing powder had become one of the most popular detergent brands in many parts of the country. By 1999, Nirma was a major consumer brand â&#x20AC;&#x201C; offering a range of detergents, soaps and personal care products.

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In keeping with its philosophy of providing quality products at the best possible prices, Nirma brought in the latest technology for its manufacturing facilities at six places in India. Nirma's success in the highly competitive soaps and detergents market was attributed to its brand promotion efforts, which was complemented by its distribution reach and market penetration. Nirma's network consisted of about 400 distributors and over 2 million retail outlets across the country. This huge network enabled Nirma to make its products available to the smallest village. After establishing itself in India, Nirma expanded to markets abroad in 1999. Its first foray was into Bangladesh, through a joint venture – Commerce Overseas Limited. Within a year, the brand became the leader in the detergent market in Bangladesh. The company also planned to enter other regions like the Middle East, China, Russia, Africa and other Asian countries.

The Road to Success

The use of detergent powder was pioneered in India by HLL's Surf in 1959. But by the 1970s, Nirma dominated the detergent powder market, simply by making the product available at an affordable price. In 1990, Nirma entered the Indian toilet soaps market with its Nirma Beauty soap. By 1999, Nirma became India's second largest manufacturer of toilet soaps by acquiring a 15% share of the 5,30,000 tonnes per annum toilet soap market. Though way behind HLL's share of 65%, Nirma's performance was remarkable as compared to Godrej, which had a share of 8% (Refer Figure I). By 1999-2000, Nirma had also garnered a 38% share of India's 2.4 million tonnes detergents market. HLL's share was 31% for the same period.

• Higher Costs - NO

Within a short span, Nirma had completely rewritten the rules of the game, by offering good quality products at an unbeatably low price. Nirma's success was attributed to its focus on cost effectiveness. From the very beginning, Patel had focussed on selling high-value products at the lowest possible price. The company endeavored to keep improving quality while cutting costs. To keep production costs at a minimum, Nirma sought captive production plants for raw materials. This led to the backward integration programme, as a part of which, two state-of-the-art plants were established at Baroda and Bhavnagar, which became operational in 2000. This resulted in a decline in raw-material costs. The two new plants were completed ahead of schedule and at a much lower cost than estimated. The second phase of the Baroda plant was completed six months ahead of schedule and at a cost of Rs.2.5 bn as against the original estimated cost of Rs. 2.8 bn. The Bhavnagar plant was completed in a record time of two years at a cost of Rs.9.85 bn as against the original estimated cost of Rs. 10.36 bn. The staff strength at this plant was a low 500. In contrast, Tata's Chemical's plant, which was about twice the capacity, employed 10 times the number of people. The Baroda plant produced 65000 tpa of N-Paraffin for Linear Alkyl Benzene (LAB) and Synthetic detergents. The technology for this plant was sourced from UOP Inter Amercana, USA. The Bhavnagar plant could produce 4,20,000 tpa of soda ash. The Akzo Dry Lime technology used in this plant was sourced from Akzo Nobel Engineering, Holland. The plant had 108 km of salt bunds, which would help it to produce vacuum iodised salt in the future. Said Patel, "We have a capacity of producing three lakh tonnes of pure salt. No one, except Tata Salt, has a similar plant in the country." Nirma also curtailed its costs of distribution by eliminating intermediaries. The product went directly from the factory to the distributor. Hiren K Patel (Hiren), CMD, Nirma Consumer Care Ltd. explained, "An order is placed and the truck leaves straightaway. It is like a current account. We send the stock, they send the money." The company maintained depots in states like Andhra Pradesh, Tamil Nadu and southern Karnataka, as getting stocks to these areas was sometimes difficult. In states like Uttar Pradesh and Madhya Pradesh, stocks were delivered directly from the plants. In March 2000, in a further cost reduction exercise, Nirma opted for in-house printing and packaging by acquiring Kisan Industries at Moriya, near Ahmedabad. Nirma hoped this would improve the quality of its packaging.

• Brand Wars - YES

Nirma also had innovative marketing strategies. In the mid-nineties, Nirma successfully extended its brand to other product categories like premium detergents (Nirma Super Washing Powder and Detergent Cake), premium toilet soaps

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(Nirma Premium, Nima Sandal, Nirma Lime Fresh). It followed its original marketing and pricing strategies in the economy segment as well as in the premium segment. In 2000, the company entered the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and Nirma Toothpaste. Unlike detergents, soaps were a personalcare product. Many customers had deep psychological bonds with their soap brands. Moreover, the market was segmented by HLL by price, by scent appeal, and by brand personality. So, Nirma positioned Nirma Bath against Lifebuoy, Nirma Beauty Soap against Lux, Nima Rose against Breeze, and Nima Lime against Jai Lime. Explaining how Nirma hoped to win this game, playing by HLL's rules, Hiren said, "World-wide, there are only four or five platforms â&#x20AC;&#x201C; floral, beauty, health, freshness â&#x20AC;&#x201C; which account for most of the soaps sold." Nirma produced high-fatty-matter soaps with the right scents, and priced them much lower than other brands. This created the 'sub-premium' segment. Nirma also mastered the game of managing the geographical diversity of consumer preferences. For instance, the North preferred pinks soaps and while the South preferred green ones. Sandal soaps were more popular in the South. Initially, the advertising spend of the company was very low, as compared to other FMCG companies. Nirma spent only 1.25-2% of its turnover on advertising as compared to the normal 6-10%. For endorsing soaps, the company used starlets like Sangeeta Bijlani, Sonali Bendre, and Riya Sen, who were relatively unknown at that time. The advertisement messages were also very simple and focused on the benefit of the product. Nirma always preferred to place the product on the shelves first, receive feedback, and then create an enduring ad campaign.

was difficult for any company to sustain itself on price alone. Analysts felt that it would take years to change Nirma's brand image. According to a survey conducted by Samsika Marketing Consultants, Nirma's marketing firm, Nirma was considered to be a cheap brand. Many people were almost ashamed to admit that they were using it. To shed this image, in the late nineties, Nirma released corporate advertisements worth Rs 10 bn throughout India. Analysts felt that the fast growing shampoo market was a better bet than the premium soaps market. In India, only 30% of the population used shampoos and more than 70% of this group was in the urban areas. However, according to some analysts, though the perceived potential of the rural market was very high, in actual practice, it was difficult to persuade rural folk to use shampoos. Another problem Nirma faced was that of inadequate infrastructure. Though it had a strong presence in the smaller towns and villages, it lacked the network necessary for penetrating urban areas. Thus, Nirma's entry into premium soaps and shampoos seemed to have failed.

The Road Ahead

Though Nirma was better known as a producer of lowcost economy range of products, it was successful in the middle- and up-market segments. But at the same time, competition was also increasing. While HLL continued to be a major competition, P&G and Henkel SPIC also adopted aggressive measures. Players from unorganized sector were also adding to the competition in the detergents and washing powder industry. However, Patel was confident of tackling the competition. He said, "We hold the price line and the satisfied consumer naturally reverts to us." In the past three decades, the brand had grown in value and volume on the basis of his success formula: "A customer does not look for one-time frills or feel-good factors. Rather, the householder wants a long While introducing toilet soaps and detergents in the term solution to his or her needs." What remained to be premium segment, Nirma relied on its time-tested weapon seen was whether Nirma's cost-focussed model would be â&#x20AC;&#x201C; Price. The company planned to concentrate on volumes a success in the long run. in these segments as well. But there was a change in the margins given to retailers. Unlike the economy products, where the cost benefits were passed on to the consumers, Nirma passed on this benefit to the retailers. It gave them huge margins. For instance, for Nirma premium soap, it offered 52% and for Nirma shampoo, it offered an unbelievable margin of 140%. Analysts were skeptical about Nirma's chances of success in the premium segment of the soaps market. Unlike detergents, the soaps and shampoo market was highly fragmented. There were about 15-20 brands, and it was difficult for any soap to get a sizable market share. Moreover, this market was less price sensitive. So, it

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Flaunte' September 2013

ARTICLES WeChat :-) LINE :-\ WhatsApp :) Revolutionary communication apps on the emerge By Seerat Jangda, IIM Lucknow

t all started with RIM’s BlackBerry Messenger. Since then, there has been no looking back. The craze that we saw when BBM was launched has now transformed itself into smartphone apps which are dedicated for messaging and connecting people. Gone are the days when people used to be connected via the internet, the email chats etc. Mobile messaging apps are in. There has been a ‘murder’ of the SMS service provided by the telecom users but what’s in store for telecom players in the present times is the subscription of data packs by the customers so as to use these mobile apps. These have almost destroyed the past SMS market and have to potential to harm the new digital messaging. Let’s take the example of ‘Facebook messenger app’, which takes more time to load and then to send messages instead of the mobile apps which are quick and easy. WhatsApp is the biggest app in all in the terms of the number of messages exchanged. This app sends almost 2 billion messages per day. That’s voluminous! Though the apps which initially bought their services to mobile were Skype and Nimbuzz but these were for

making free calls. The mobile revolution was started by applications like BBM, WhatsApp and Viber. The use of emoticons in messaging has been icing on the cake. The continuous innovations in terms of new features being introduced is the key. Recently WhatsApp came out with voice messaging capacity across various platforms. When these apps are somewhere affecting the revenues for telecom players, they would have anticipated this by now and would be coming with some new strategies in order to combat this. One example of this is Malaysia’s Maxim, which recently announced that its Hotlink Social Edition starter packs would allow free and unlimited access to Whatsapp, Twitter and Facebook. This had made Maxim the first telecom service provider in Malaysia to launch a starter pack which is social media-based. One intriguing feature of all these apps is the peculiar green and white color used in their symbols. All of them cater to different geographies, have different strongholds, were launched at different times but have almost the same layout for their symbols. WhatsApp was the first mover in this category with its launch in July 2009, has its stronghold in Spain and has 200 million user base. WeChat was released in January 2011 has a user base of 300 million with stronghold in China. LINE currently

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”Best Article of the Month“

caters to 150 million users with stronghold in Japan and was launched in June 2011. These mobile messaging apps have changed the communication landscape. The casual/short term need messages are segregated from the important/official/ long term communication which is generally done via email. Though this does not mean the demise of email at all but surely reflects the lesser use of email. This has multiple reasons to it. First being that the response time for these apps is too low. You tend to respond right away after seeing a text message. Second being that the aps being more personal vis-à-vis the email. The immediate synchronization of your contact list with the launch of such an app makes it easier for one to sends a short message without the burden of formality attached with an email e.g. the subject line. Moreover the easy integration of the apps with the mobile’s hardware such as access to photos makes it easy to send images/videos across. Additional features being provided in these apps at just a touch away, gives them an edge over the traditional email. For example, sharing contact, sharing location is so comfortable. Now-a-days WhatsApp (for example) has become a verb for text message. This is the same as what Surf, Xerox,

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Nirma, Google have done in their category segments. The point is to the popularization of these apps so as to make it as so generic that they be used as a verb for text messaging. Just as this article ends, I opened my WhatsApp free messenger app on my iPhone and tap a virtual sticker having a sleepy face with a “good night, take care!” bubble and sent it to a friend and thus joined my hands with the billions of users of mobile messaging apps.

Flaunte' September 2013

Microsoft Buys Nokia "An inevitably well scripted story for all"

By Ramesh Chandra Pradhan, SIMS Pune

ou don’t change with the needs of your customers you’re poised die eventually “. Seems quite apt an idiom in today’s world where the competition is very high and consumer as always is the king. From a company which started with paper manufacturing, then to network equipment and then to mobile phones and moreover a company which contributed to 18% of the country’s GDP once, is nowhere anymore. Or a company which made phones which were being used by 90% of the Finns at some point of time. Almost single-handedly the company powered Finland out of slump in the early 1990s by making mass-market mobile phones which sold like hot cakes during those days. But then... what went wrong? Shall we call it a fate which was looming for long or shall we call it a blunder on the part of Nokia? I mean who can dare forget that it was Nokia which was the largest mobile vendor from 1998 to 2012. A European giant has suddenly fallen...!!

smartphone strategy to Microsoft’s Windows Phone. Elop stated the reason for switching to Windows instead of Android: "the single most important word is 'differentiation’. On 3rd September 2013, it was officially announced that Microsoft has agreed to buy Nokia’s mobile phone business. Unsurprisingly so , the Finnish media went berserk over this development as many believed it to be a planned strategy to buy this European giant three years ago when Stephen Elop joined. Owing to his Canadian roots it was believed that he wanted this business to shift to Seattle. It went even to the extent of Elop being mocked by the media as a ‘Trojan Horse’ from Microsoft who had Nokia’s acquisition on his mind since the day he joined Nokia. Well...well... Seems like a good John Grisham plot. But then it’s what they media persons are paid for...isn’t it? Who knows the truth...let it unfold itself? As the things stand right now only time will tell how it is going to change Microsoft as a brand.

When you have built your image over years you certainly would not want to lose it overnight. Well then failures do come ... and in business they come lurking. And sometimes the threat seems too small that you just overlook it. Same thing happened with Nokia when they didn’t accept Android as an OS while other big players like HTC, Sony Ericsson, Samsung etc. we’re accepting it considering the features it promised and these were names which earlier had Symbian OS in their phones. You can call it a gamble or a decision which was made well in time. And moreover, Microsoft a software service giant which was yet to step into the consumer electronics market made mockery of Android. And the implications of the obdurate attitude is there for everyone to see. When Nokia realized the need to take a rearguard action to get their market share back which plunged from a formidable 52.4% in 2008 to 30% by 2010 end, it was already too late. By that time Android grabbed a market share of 32%.

Now with this deal between Nokia and Microsoft being done what are the prospects that lie ahead. An emotional Stephen Elop saying “ this was the best thing that could have happened to Nokia going by the circumstances they were in... it was tough, but then this was the only way out” . A whopping $7.2 billion deal after all ....which saw a company build over years go into the hands of a foreign multinational. But then what lies in the store for Microsoft as company ... a lot indeed. Its quest for an image makeover from a software services giant to a consumer electronics firm is finally over. Apple Inc. did it 2008 now Microsoft follows the suit. This will see Microsoft inheriting 32,000 employees of Nokia for its mobile business. This will certainly add another feather in Steve Ballmer’s cap who is planning to quit Microsoft next year after taking over from Bill Gates in 2000. All being said and done ...it’s now upon Microsoft to keep reinventing itself with time or we’ll see for real the so called “Trojan Horse” leading to the death of a legendary company...a company which touched a billions of lives.

Stephen Elop , CEO, Nokia decided to join hands with Microsoft hoping they will regain the lost market share by using the expertise of Microsoft , Stephen himself being a former Executive of Microsoft. In 2011 he came up with this new strategy for Nokia which included the discontinuation Symbian OS thereby shifting its

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The art of real time media buying: On the ascendancy

By Shreemanti Basu, NDIM

n today’s world of competitive marketing in order to keep an edge, marketers are in constant search for new innovations in promotional strategies for increasing their reach. It is an absolute necessity to smartly maximize one’s reach and leave an impression on the consumer’s mind. A marketer’s utmost goal is to understand the customer profile and come up with products that match it. Real time media buying is a new and dynamic way to buy online media. Through an automated process, media buyers can evaluate, bid on and purchase ad inventory on an impression-by-impression basis which involves the analytical evaluation of a particular ad or efficiency of the client website through the mean of CPI(Cost per impression) and CPC(Cost per click). With this media buyers can drive meaningful one-to-one connections to consumers with greater scale and efficiency. In layman words, in the intense world of marketing it is a new found light at the end of the tunnel of competition for digital marketers. Digital marketers sought this method to create impressions on web users to convert them into potential buyers.

In the battle for winning new customers, digital marketers make use of the one of the most important lifelines of today’s world-the internet. Whenever a user visits a particular website, an analyst who is keeping tracks with the help of cookies records which websites the user visits. This way the analyst collects a user profile based on several parameters such as demography, age etc. Then the very next time the user visits a website, ads which suit the user profile are flashed on the screen of the user. For example if a young boy visits an online shopping website, and searches for trendy footwear, then logs out without buying anything, the next website he visits will show ads of that particular online shopping website along with the product he had searched before. This marketing technique is generally known as Retargeting & is currently the most implemented marketing technique adopted by various ecommerce portals. Real Time Bidding (RTB) It is an algorithm driven system where purchasing of individual ad impressions take place in real time. Websites send premium user profiles in the form of impressions to ad exchanges which facilitate auctions where advertisers bid on individual impressions in real time. The winning bidder purchaser’s single impression and his ad is shown to the potential customer.

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The Benefits of RTB The benefits of these are numerous; this system saves a lot of time as these biddings are done in milliseconds. It also removes the intermediaries between the publishers and the advertisers as the buying and selling process takes place across media exchanges. This system makes it easier for advertisers to gain exposure as a free market is created in which the sole price determinants are the demand and supply factors, which leads to efficient pricing which is beneficial for both advertisers and publishers. The transparency of the system helps advertisers to check if the impressions were served so as to maintain brand loyalty.

SoLoMo (Social-Local-Mobile) Though the word seems like a jargon for most who read it, it is the new mantra for digital marketers. It is a combination of three words Social-Local-Mobile, which are of good use to a marketer. The coming together of these three technologies that make searches and picking customer profiles an easier task for digital marketers. It helps provide customers with information with respect to their current location instead of just the searched information. The marketers make use of social media, integrate more localization into their platform and reap the benefits of the smart phone usage in todayâ&#x20AC;&#x2122;s world. If we think about it, a person who is in a certain locality and is looking for a restaurant, gets an update of the restaurant that is the nearest to his coordinates stating hey here is an restaurant go check it and on the other hands directly gives you the ability to share your current location with your social peers & your activity is being shared & is visible to your social peer is an apt example of SoLoMo the best example in this case would be foursquare. As a result of which just with a few min interaction with the user the marketers are able to generate data based on demographics & psychographics which is crucial and needed for targeting & estimation of target audience more and more digital marketers are reaping the benefits of this system. In a nutshell we can say, that in the era of cut throat competition in the marketing realm, innovators are constantly coming up with ideas that are raising the bar every minute. And it would be no surprise if the marketing world goes through a paradigm shift in the times to come.

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BIZ QUIZ Answers Answer 1: Reliance Communication Answer 2: Titan India Ltd. Answer 3: Mr. Robert Holdheim, Managing Director of Edelman, India Answer 4: Syntex communication Answer 5: Apple Answer 6: Guerilla Marketing Answer 7: e-choupal Answer 8: Danone Answer 9: Blue Ocean Strategy Answer 10: Zoozoo

NDIM

Flaunte' September 2013

VISITOR’S OPINE @ NDIM NDIM students interacted with senior HR professionals from Jindal Steel & Power Ltd., J.K. Tyre & Industries Ltd., Future Group, Prime Group of Companies. NDIM being a hub of senior Corporate leaders, provide ample opportunities to its students for a greater level of interaction and exchange of ideas with top professionals and learn about the relevant practices and trends in the Corporate World. The discussion encompassed exposure and learning of the winning mantras and guiding students to succeed in their respective career. Mr. R.P. Singh, Director – Human Resources & Legal, IFFCO; Mr. Neeraj Jain, Managing Director, Scholastic India Ltd.; Mr. Prasoon Mani Tripathi, Vice President –HR & Corporate Planning, Sameer Agriculture & Livestock Ltd.; Mr. Ashish Chandra, Commercial Director, De La Rue Cash Processing Solutions; Ms. Jaishree Sharma, Head – HR, IRCON International Ltd. convened at NDIM campus for an interactive and exhaustive panel discussion on “Roadmap For Success For Future Managers”. The objective of this panel discussion was to hone the concepts and skills prevailing as per the current trends in the Corporate World, availability and employability of jobs for the students. Students got a great platform to interact with senior leaders from the corporate, enhancing their knowledge and providing them a path with requisite directions for upgrading themselves for the upcoming jobs and challenges in the long run. NDIMites received a golden opportunity to interact with eminent corporate leader, Mr. Harish Natarajan, MD - Bausch & Lomb (India). Mr. Natarajan spoke to NDIM students and shared about his journey in the corporate world. He interpreted life as a series of experiences, the fullest you live your experiences, the fullest you live your life. He told everyone to believe in their thoughts and dreams and advised all to always hold the will to fulfill those dreams in life. NDIM hosted GLOBAL HUMMANISM SUMMIT at its campus on 21st Sept, 2013. Students from more than a dozen countries shared their social and cultural learning with NDIM students. More than 200 students from DU and IIT, Delhi debated and performed at NDIM. The event was judged by the distinguished faculty at NDIM.

Flaunte' September 2013

NDIM

Flaunte' September 2013

TEAM: FLAUNTEâ&#x20AC;&#x2122;

Abhishek Mehta Anurag Verma Gurvinder Singh Prakash Senapati Adarsh Chandra

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NEW DELHI INSTITUTE OF MANAGEMENT, 60 & 50(B&C),Tughlakabad, Institutional Area, New Delhi-110062, Phones: +91-11-29956566/67/68/69, 40111000 Fax : +91-11-29965136 Toll Free : 1800419-0606, E-mail : info@ndimdelhi.org, Website : www.ndimdelhi.org