As the current trend of renovating suggests, UTV is rebranding itself giving it a fresh and new outlook. UTV which has existed for 20 years since TV programming was in its infancy has shed its old corporate look and given the whole brand into a new look and feel. The new UTV identity will be seen across channels, films, content, the gaming website (www.indiagames.com), the UTV website and the mobile applications. UTV has invested about 3.5 crore in its re-branding exercise and would be reaching about 126 million urban consumers through its 4 TV channels. The concept of re-branding in media is not new but the need to carry the legacy forward has become a challenge. K.J.Singh, Evolve Brands, says “The UTV re-branding will work provided they will show that they are starting a different trend all together.” UTV’s overall brand evaluation will continue and their singular identity will now diversify into their every new media business. “It will probably be tough for the new logo to establish because they fight against the equity of their own but fortunately for UTV they are a media brand and the ability to be out in media space is very large, it’s not a product brand which doesn’t have the Media reach but if UTV keeps its branding done continuously through its various media formats it will work out for them. It’s about achieving a visual imagery for the brand which is contemporary, which is about the space, about the media they operate,” comments brand analyst and consultant Harish Bijoor.
 
Sanchit Verma

Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

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Yahoo! has signed up with one of the greatest football icons ever, David Beckham, as its brand ambassador. It is believd that Yahoo! is planning to feature him in the second phase of the company’s global integrated marketing campaign. According to the contract, Beckham will be responsible for providing exclusive content for Yahoo’s coverage of the Football World Cup and 2010-11 football season. By getting David Beckham, Yahoo! aims to attract and make more people search, use and talk about it. With the upcoming football season, Yahoo! is planning to give an opportunity to football fans to directly connect with David Beckham and ask him questions through various Yahoo! channels, which will include Yahoo! Answers, Y!Mail and Y!Messenger. Beckham will also be interacting with the football fans on one- on- one basis, where he will talk about his experience of past three World Cup’s. If Becks was (is?) one of the world’s best ball benders, this is the time for him to prove it for Yahoo!      For more articles,

Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

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While e-Commerce is paralysed for low literacy rate and Internet penetration in India, S-Commerce is catching up fast creating a new industry of re-distribution of services
 
Despite e-Commerce existing in India as a business model, only 5% of the Indian population uses it as a regular option. India might have created a place for it in the global technology space, but when it comes to the common man, he is yet to receive the benefits of the technological developments. Problems like lower literacy level, lack of computer/Internet penetration and operating knowledge, resistance for an online transaction siting security concerns are some of the core issues for which e-Commerce has failed to gain ground in this country.

One of the solution to these problems is ‘S-Commerce’ (Service-Commerce). The S- Commerce model is a shift from traditional e-Commerce model, where products and services are available on the Internet and it aims for the remaining 95% of the country’s 1.5 billion population. The services include railway ticketing, bus ticketing, air ticketing, mobile & DTH recharge, travel & tour packages, insurance premium payment, bill payment, loan origination, movie ticketing, horoscope, study materials, et al. S-Commerce not only addresses the challenges faced by e-Commerce, but also goes a step ahead to comfort those who want to avail the benefits of technology without having the infrastructure or knowledge to those who want to have the facility of multiple modes of transaction, including cash. Consumers can now walk into their neighbourhood convenience stores (Kirana / Provision /General / medical stores / PCO/STD booth/cyber cafe / travel agents / Telecom shop et al) and purchase all kinds of ‘Services’, without having to pay any extra fee.

S-Commerce is the way ahead for creating the convenience for the consumers. It has also led to creation of a new industry of e-distribution of services. The idea is now accepted across 20 states by around 21,000 outlets, and this indicates how fast the platform is gaining ground in India.

However, being the first one to initiate such a service, the path wasn’t smooth for Suvidhaa. The concept of S-Commerce was alien to people. Creating recall value and brand recognition along with acceptance was a great challenge. But as they say, nothing is constant, things changed. Today, retail players are looking for more and more touch points to reach out to customers. They are aiming at cost optimisation at both micro and macro levels and developing new means to attract customers as the latter are ready to spend money for the right product. And in order to achieve faster growth, the retail sector is expected to extensively leverage technology, the benefits of which will slowly start reaching out to masses, thereby resulting in faster growth for the retail sector, and for S-Commerce.

The rural part of our economy is still untouched by credit cards and mortgages as known in the West. Perhaps this is one of the reasons for which the rural markets are insulated from the global meltdown. There are several factors which have led to an increase in rural purchasing power. However, irrespective of these factors sectors like FMCG, automotive, retail and telecommunication have benefitted from the rural prosperity. Taking this opportunity ahead, various service providers are now penetrating deep into the country through the S-Commerce route.  And the main reason is that consumers do not need to have a credit card to avail the service and they can avail it even at the nearby grocery store. Moreover, the platform has been built in such a way that it may not be very long when we see the differentiating line between rural and urban India diminish as far as the availability of products and services are concerned. The S-Commerce route would definitely bridge this gap and make various offerings available under one roof.
 
As told to Vareen Gadhoke Ray


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

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WITH COMPETITION, B-SCHOOLS NOW HAVE TO THEMSELVES PRACTISE THE RULES OF MARKETING THEY WERE PREACHING. CAN THEY COME UP TO THE ASK?
 
Zen practitioners seemed to understand much before Philip Kotler that a great product was just the beginning of marketing bliss. They used to ask the question, “If a tree falls in the forest and no one is there to hear, does it make a sound?”

Being a noble endeavour for society that is viewed with immense respect, the education business has traditionally been out of the ambit of large scale advertising in India. But as the lopsided supply-demand situation leads to a flux of public and private investments in the sector, marketing has acquired an unputdownable importance, as Vishal Deep Dhillon, Regional Director – Asia (Sales and Service Delivery) at CSC, Singapore tells 4Ps B&M, “In a world where there is a glut of B-schools with varying degrees of quality of education, some good B-schools get lost in the crowd due to the lack of branding. Targeted marketing of B-schools via ‘appropriate mediums’ (online, mobile, cable & TV, print media, hoardings, even direct sales) is of paramount importance.” Is he exaggerating?

“Not at all,” says Prasoon Majumdar, all India Dean Academics at the Indian Institute of Planning and Management (IIPM), “B-schools in India became the talk of the town post liberalization in 1991, as the need for managers skyrocketed in all business arenas. This was the period from where B-schools started to make a smooth entrance into the education system of the country. At that time, some private B-schools realised the need for branding themselves, mostly in order to close the public perception gap between them and those B-schools that had traditionally grown on huge government funding and support, which anyway had mostly been wasted irreverently by these so-called ‘nationalised’ B-schools.”

Subsequently, and now especially, the competition to attract students is growing, with the last two years of economic slowdown being perhaps a clarion call for many new-on-the-block B-schools, most of which closed down due to lack of students. Industry players like Amarendra Kumar Shrivastava, Chairman, Asia-Pacific Institute of Management and Priyanka Ahuja, Chairperson, Academics Media, ISB&M School of Communication, acknowledge to 4Ps B&M how integrated marketing communication is being used more now by some B-schools to get the cream students. But clearly, that’s the case with only a few B-schools, as Harold D. House, President, Opus One Media (a media house that handles the branding accounts for a few B-schools) tells 4Ps B&M, “Developing a brand for a B-school is an effort that, internally, is the last of the considerations for many B-schools. They hire us to conduct the branding exercises but rarely do they either attend or get into it.”

But marketing is not just about branding. Marketing also includes convincing the prospective student and his/her parents about the quality of course contents, specialisations offered, international exposure, industry interface, long term potential, placements (national and international), financing options (given the high investment required for quality courses), and most importantly, closing the sale – ensuring that after all the marketing spin, the student signs up.
 
Says Deepak Kaistha, Managing Partner, Planman HR, “You’re forgetting the most important element of the whole process – finding out where the prospective student is and reaching out to him to apply to the particular B-school.” Ali Mohammed Bhayani, COO, Michigan State University, Dubai accepts the same to 4Ps B&M, “Reputation of B-schools is dependent upon the number of applications to admissions. So the B-school that is able to increase its application numbers creates a demand-supply gap.” Elements of marketing have come into the picture for the very same reason.

But another aspect, the ‘place’ in the marketing mix, is the development of a broader market base in Tier 2 and Tier 3 cities, and not just in terms of increasing advertising, but also in terms of actually opening up newer campuses and centers. This is one aspect that nationalised B-schools never come up to as they have to undergo huge bureaucratic clearances in order to open up a new campus or even to increase their students intake. Some of India’s top B-schools like the FMS Delhi, in their past interactions with us, have shared the tribulations they have undergone on such issues.

On a concluding note, just like modern day products, few institutes can have an appeal that goes across segments. The key, therefore, is to clearly define one’s competencies and market them comprehensively to a particular target market, rather than believing ad nauseum in product myopia – that if you have a great product, it has to sell. In the real world, it doesn’t!

Ashutosh Harbola


 
 
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Research Methodology

THE PROCESS UTILISED BY THE INDIAN COUNCIL FOR MARKET RESEARCH FOR ITS RESEARCH ON “INDIA’S BEST B-SCHOOLS” ON BEHALF OF 4PS BUSINESS & MARKETING MAGAZINE

ICMR conducted the perception survey in two phases:

THE FIRST PHASE: In the first phase of the survey, ICMR generated a list of 700 B-schools across India. The list of B-schools was prepared based on a secondary study conducted by ICMR. The 700 B-schools were divided according to geographical zones, i.e. North, South, East and West. The list was then circulated amongst a select set of 45 B-schools professors (having work/industry experience of at least 5 years) to rate each of the B-school based on “overall perception”, on a scale of 1-4 (1 being the best and 4 being the worst). The overall results were compiled and the overall perception scores were calculated. B-schools were then divided, based on ICMR’s grading system.

The B-schools that scored between 3.51-4.00 onwards were not further covered under the purview of the study and were dropped altogether. Those which scored between 1.00-1.50 were categorised into the A+ & A categories (wherein the top 10 were categorised as grade A+ and those with final rankings ranging between 11-30 were categorised as grade A). Then, these top 30 B-schools were ranked in a detailed fashion, based on 12 parameters in the second phase.

SECOND PHASE: The second phase of the survey involved the list of the top 30 B-schools with Grades A+ & A. Each of the 30 B-schools were further scrutinised based on the following parameters:

• Global Exposure: which included elements like student/faculty exchange programmes, international linkages, et al;
• Fun Factor: which included elements like debates, quizzes and other management based activities, et al;
• Course Contents: which included elements like the number of subjects/papers, regular upgradation of syllabus, et al;
• Faculty: which included elements like student/faculty ratio, total number of permanent/visiting faculty members, faculty members with industry experience et al;
• Infrastructure: which included elements like campus area/location, number of classrooms, library, wi-fi campus, laptop facilities, cafeteria, et al;
• Personality Development: which included elements like overall personality development, role play and presentations, enhancing communication skills, et al;
• Student Profiles/Admissions: including elements like student qualification, background, age distribution, et al;
• Research and Writings: including elements like internal journals published, newsletters/magazines/books published, faculty contribution, et al;
• Industry Interface: including elements like number of Management Development Programmes/ Executive Development Programmes/seminars, joint corporate training workshops, projects undertaken with corporations, et al;
• Placement and Packages: including elements like number of students placed each year, domestic/international placements, maximum salary both domestic and international, number of companies – both domestic and international – visiting the campus, et al;
• Alumni: elements like alumni profile/strength, alumni meets, career path taken by the alumni, alumni network, et al; • Parental Perspective: including parental perspective on respective B-schools.
 
The respondents for the parameters given above were students, faculty members, parents and corporations, primarily from the HR departments (as they recruit and interact most with B-school graduates). The parameters were divided amongst the respondents on the basis of relevance. However, the ratings for parameter of infrastructure and faculty were collected both from students and faculty members. The sample size of students interviewed pan India, was about 1,200. The students covered under the purview of the study were primarily current management students and management graduates. Faculty members of esteemed organisations such as IIFT (New Delhi), Narsee Monjee Institute of Management Studies (Mumbai), T. John College (Bangalore), IISWBM (Kolkata), MDI (Gurgaon), ICFAI (Hyderabad) and others were interviewed on the parameters of Faculty, Infrastructure, Course Content and Research and Writings. Apart from this, ICMR also conducted interviews with the corporate HR fraternity to gain inputs on the parameters of Industry Interface, Placement & Packages, and Alumni. The industry/HR people covered under the research were from well known organisations in the industries of banking & financial services, retail, IT, consulting and various others.

Each of the above mentioned respondents were asked to rate the top 30 B-schools on the respective parameters on a scale of 1-10 (1 being worst & 10 being best). The final ranking is based on the cumulative mean score on each of the parameters. However, since the parameters of faculty & infrastructure were both rated by students & faculty members, we have shown the cumulative scores. The parameter of parental perspective was rated by parents of students who have pursued or are currently pursuing a management course.

 
 
Mahindra has been almost synonymous to tractors as the company has retained its market leadership in the domestic market for the past many decades. 4Ps B&M tries to explore how the on-ground activations are helping the company to keep its flag high in the Indian market while keeping the Mahindra brand close to its target consumer
 
It was in October 2009, that the largest player in the Indian tractors market, Mahindra & Mahindra gave a shot at tackling the much-worrying problem of the perception of using faulty hydraulics in its tractors among its TG. Labeled as the ‘Hytech campaign’, the company chose to opt for an on-ground activation activity to pass its message across the prospective consumer. It did a live telecast on the LCD screen to show how the technology in Mahindra products work. The campaign was initially started in the sub-urban and rural parts of Rajasthan which was later followed by several regions of Haryana and Uttar Pradesh. Soon after the campaign was kicked off, it started to reflect positive results as the aspirational image that Mahindra has been carrying among its consumers for the past many years is intact even today. In fact, if you are a believer of numbers speak louder than words theory, then as the Indian tractors market clocked 4 lakh units last fiscal, M&M stood tall on the pole position with a 42% market share selling 1,60,000 units. While the campaign is still going on in the various parts of the country, it has surely been very effective as far as the impact on the mind of the consumer is concerned. “Keeping in mind the low reach in the rural parts of the country as compared to the urban regions, on-ground activations serve as a perfect medium to touch base with the target consumer,” explains Sanjeev Goyle, Sr. VP – Marketing, Farm Equipment Sector, M&M. However, it is indeed very interesting to note how the various BTL activities that the company has been doing for a very long time is helping the tractor major to retain its crown in the Indian tractors market.

As far as its media mix is concerned, the company spends close to 55% of its total spends on above the line advertising while a healthy 45% share is committed towards the BTL activities. In fact, keeping in mind that the rural consumer is considered to be quite receptive in its nature and has more time as compared to its urban counterpart, BTL activities are considered to be one of the best medium to touch base with the target consumer by many marketers. It may be noted here that companies like Hero Honda and Maruti Suzuki, the respective market leaders in the two-wheelers and passenger cars segment have seperate marketing division catering to the rural parts of the country. “Mahindra focuses on two different aspects in its on-ground activations. One is aimed at strengthening the M&M brand altogether while the other focuses on establishing separate brands among the TG,” said Priya Monga, Business Head, RC&M Pvt. Ltd, an experiential marketing company that has worked on several rural marketing campaigns. Hytech was only one of the activity in a handful of innovative dope that the company has been giving to the rural consumer. The company also organises the Mahindra Mahotsav on an annual basis that moves from village to village as it creates a set-up of a carnival for the people staying in the villages. “Mahindra Mahotsav is one of the best on-ground activations that M&M has done in the past years. In fact, it is as a day-out activity for the rural consumer and hence it focuses beyond selling and buying of tractors,” added Goyle. In fact, there are brands like Airtel, ICICI and Nokia that have participated in the event in the years gone by and provides a perfect platform for several companies to get closer to their TG.

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

---------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
Planman media hosted a special interactive session on May 28, 2010 focusing on a very contemporary and relevant topic in the automobile sector – ‘The fight between the urban and rural consumer’ – at India Habitat Centre, New Delhi. As almost all automakers in the country are heading towards the Tier-II and Tier-III cities to generate a sustainable growth for the future, we decided to explore how strategies differ when it comes to convincing the rural consumer versus the urban consumer. The session was attended by industry stalwarts, media representatives, journalists and also members of the editorial team at Planman Media. The welcome address was given by Planman Media’s editor, Prof. A. Sandeep, where he questioned the importance being given to rural markets – as rural customers earn almost five times lesser than the urban customer, and spend much less as compared to the urban consumer. Pankaj Dubey, National Business Head, Yamaha Motors (India) was the first speaker, where he threw light on Yamaha’s rural strategy. Notably, after gaining a considerable position in the premium segment, the Japanese two-wheeler major has recently made its presence felt in the executive segment with the YBR 110. The next speaker Sanjeev Goyle, Senior Vice President – Marketing (Farm Equipment Sector), Mahindra & Mahindra, defended the rural consumer commenting that Mahindra & Mahindra has become the world’s largest tractor manufacturer last year, purely based on sales in the Indian rural markets. Goyle focused on how the rural consumer, both behaviourally and in terms of need based purchases, is different as compared to the urban consumer. At the same time, the subsequent speaker, P. S. Choudhary, Head-Marketing, LML, stressed on the fact that there were many similarities between the urban and rural consumer, especially while considering the automobile industry. Choudhary shared his 4A theory for rural India – affordability, awareness, availability and acceptance. The next speaker, Udit Bhandari, CEO, Indimoto, peppered his speech with research findings that differentiated rural from the urban consumer. The last speaker, Anuj Guglani, CEO, Ace Associates, provided hard statistics, research data and convincing figures that augmented the past speakers’ various points. The concluding session saw the speakers agreeing to disagree on how much advertisement spend should be invested in the rural segment. In all, a critical and incisive conclave.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

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TECHNICAL SPECIFICATIONS:

• CNG-compatible engine

• 6,26,645 (ex-showroom Ahmedabad)

FOR A GREEN FUTURE: Buoyed by the success of Beat and Cruze, GM has launched the CNG variant of Aveo. As the product comes as an extension of Chevrolet’s commitment to develop green products, this bi-fuel vehicle has a running cost which is 54% lower than a similar vehicle powered by petrol and 25% lower than a similar vehicle powered by diesel. It also boasts of a next-generation computer controlled CNG injection technology that will provide an impeccable driving experience to the user.
 

 
 
EXCLUSIVE INTERVIEW: V. SUNIL, EXECUTIVE CREATIVE DIRECTOR, WIEDEN + KENNEDY

What was the creative idea behind the IndiGo ad-campaign?
We have a very different kind of relationship with Indigo, from the very primitive stage when they got their first plane. We have done everything from deciding the carpets to food to dresses to packaging; we have sat with the chefs and decided the menus, the packing and the sourcing. In a nutshell we have been with Indigo as long as Indigo has been there. So the idea was just to present the fun and seriousness at IndiGo in a single package.

But isn’t investing in a TVC risky for a Low Cost airline?
Over time, we had started concentrating more on making the experience better for customers by laying importance on IndiGo services. And the time had come to give out a message, which was important for a brand and it’s perception. We cannot ignore that in a market like ours nothing works like a TVC does.

With this TVC is Indigo has tried to change the concept of ‘Indian Stretchable Time’ to ‘India On Time’. Your views...
Yes. We wanted to convey a message to hit the masses and also to create something that is cool to watch. It is a remix of everything that will make people think while enjoying, and that has been the plan. Just because IndiGo is a low cost airline does not mean that it cannot be different. So while we have made a fun-filled ad, we also have something unique to offer. From the beginning, that has been the plan. And now, “on time” is one of the key messages.

What are the other elements that the ad carries?
Firstly, it carries the spirit of Indigo, that is a part of being on time. Secondly it is a happy, young airline. When you sit in the plane you feel all these things, the service, the punctuality and the ambience...

Do you think that this campaign will help change the perception of Indigo?
V. Sunil: Not really, but with a campaign like this, people will atleast check IndiGo out – both for travel and for employment.


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

---------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
Ravinder Zutshi, Deputy Managing Director, Samsung India
 
What are your plans for this season?
With summer setting in early this year, we expect a good growth in AC and refrigerator sales this year. Stable macro economic factors coupled with our new product range in both categories will act as growth drivers for these segments. As a result, we have expanded production capacity for ACs, introduced an entirely new portfolio of star rated energy-efficient refrigerator and AC models and launched new marketing campaigns for the same. This year, we have unveiled 26 new models across split and window AC categories while in refrigerators, we have launched the frrrunch range, which will comprise of 49 frost free and 19 direct cool refrigerators.

Besides launching new products, how are you ramping up your production levels this year?
To meet the growing demand from the market, we have begun manufacturing split ACs at our Sriperumbudur facility in November 2009 and in the Noida facility in February this year. We now have a total production capacity of 1.2 million units per annum for split air conditioners in India. This capacity expansion has been possible with the investment of USD10 million. Sales volumes are also expected to double to around 1 million units this summer.

Any specific growth targets that you can reveal for now?
Yes absolutely. In ACs, we plan to double sales volumes in 2010 this year to one million units, hence garnering a market share of over 30%. In refrigerators, the market share target has been set at 26% by end of 2010. Overall we are looking at a 40% jump in sales volume of our refrigerators and ACs in the April-June quarter.

How is your pricing strategy going to work out in the current scenario?
The widening of tax slabs may have put more money in the hands of consumers, giving a fillip to demand for consumer durable products; however rising input costs have also affected prices. While most of the negative impact of the steep hike in input costs has been absorbed by us, it has necessitated a marginal increase in prices of our products. Thus we have marginally hiked prices of refrigerators by 3% and for ACs by 4-5% recently.

What innovations are you bringing in your products?
At Samsung, our endeavor is to introduce products that meet the needs of Indian consumers and we do so by developing products based on insights drawn from Indian consumers. A recent example would be the just launched Samsung S series ACs that incorporate the world’s first S-UTRTM compressor; designed to provide stable operation during voltage fluctuations or the highest temperature. With erratic and unstable electrical conditions in India that lead to constant breakdown of ACs, Samsung has enhanced the motor of the compressor to provide reliable performance in extremely low voltages or at 54 degrees Celsius without an external stabilizer. In fact, the S Series ACs are stabilizer free, thus saving space as well. So now the user can have fresh, cool air in any condition. Similarly, the 2010 Refrigerators range under the name ‘Frrrunch’ is designed to be a perfect combination of convenience and performance as well as understated elegance. Packing the world’s most advanced cooling technology and conveniences that make living a delight, the new Frrrunch refrigerators have the advantage of an advanced Moisture Control Technology that ensures that fruits and vegetables remain naturally fresh and delightfully crunchy.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

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