I would try and write, thats commitment. I am thinking of writing a paper on Ingredient branding is the future of new age branding.
i am wondering, is it not, I scratch yours you scratch mine phenomenon.
Hope I can write again.
I have been writing blogs on marketing and business. The busy schedule - business development, alliance, marketing, operations, strategy and other sundry activities kept me away from blogging. Not any more, at least this is one of the advantages of break from entrepreneurship.
I would try and write, thats commitment. I am thinking of writing a paper on Ingredient branding is the future of new age branding.
I would try and write, thats commitment. I am thinking of writing a paper on Ingredient branding is the future of new age branding.
Gang of girls – a social media evolution
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Gang of girls – a social media evolution
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ORM for CXO
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ORM for CXO
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Hrithik Roshan is Magic for M2-Magic Moments
M2-Magic Moments Vodka, a Radico Khaitan Ltd. brand, has recently launched its seven flavors for Indian market. The flavors are raspberry, ginger, lime, lemon grass, green apple, chocolate and orange.
The new brand is targeted at youth. The M2-Magic Moments Vodka has unique packaging which draw consumer attention. The bottles have graphics directly printed on to them, and Radico Khaitan has invested in the latest packaging decoration technology currently being used in Europe.
M2-Magic Moments Vodka promises everything that a person’s life should have – enjoyment, fun, zest and zing. It’s a product which stands for excitement in life.
Bollywood actor Hrithik Roshan has been signed on as the brand ambassador for M2 – Magic Moments vodka. The energy and stylish modern appeal of Hrithik fits well with the international, young, energetic Magic Moments vodka brand and the experience that it promises its consumers.
The new brand is targeted at youth. The M2-Magic Moments Vodka has unique packaging which draw consumer attention. The bottles have graphics directly printed on to them, and Radico Khaitan has invested in the latest packaging decoration technology currently being used in Europe.
M2-Magic Moments Vodka promises everything that a person’s life should have – enjoyment, fun, zest and zing. It’s a product which stands for excitement in life.
Bollywood actor Hrithik Roshan has been signed on as the brand ambassador for M2 – Magic Moments vodka. The energy and stylish modern appeal of Hrithik fits well with the international, young, energetic Magic Moments vodka brand and the experience that it promises its consumers.
Aamir Khan is Jhingalala for Tata Sky
Khan has been in the news these days, heavily promoting his latest production, Jaane Tu… Ya Jaane Na, which is also his nephew, Imran Khan’s debut film. Recently, he has started endorsing Samsung and Parle Monaco. He has been the Titan brand ambassador for a while now.
Tata Sky is a joint venture between the Tata Group, STAR TV. In this venture TATA owns 80% and STAR TV owns a 20% stake. Tata Sky was incorporated in 2004 but was launched only in 2006. The company uses the Sky brand owned by British Sky Broadcasting.
Tata Sky, has roped in Aamir Khan as its brand ambassador. Bollywood star Aamir Khan has entered into a long-term contract with Tata Sky. Aamir Khan will be used extensively for communicating the benefits of Tata Sky to the Indian consumer. It is definitely a strategic move as the rival dish TV has signed Shah Rukh Khan. Tata Sky would use Khan to take the brand forward. He is not the first brand ambassador for the 21-month old DTH service provider. Hrithik Roshan was used during the Cricket World Cup in 2007 for select campaigns and other film stars like Kiron Kher and Paresh Rawal were also used for some campaigns which basically testimonial ads.
Khan will feature in all the Tata Sky ads in print, TV, outdoor and radio with the popular Tata Sky tag line Isko laga dala, to life jhingalala.
Rediffusion DY&R is the company’s creative agency.
Tata Sky is a joint venture between the Tata Group, STAR TV. In this venture TATA owns 80% and STAR TV owns a 20% stake. Tata Sky was incorporated in 2004 but was launched only in 2006. The company uses the Sky brand owned by British Sky Broadcasting.
Tata Sky, has roped in Aamir Khan as its brand ambassador. Bollywood star Aamir Khan has entered into a long-term contract with Tata Sky. Aamir Khan will be used extensively for communicating the benefits of Tata Sky to the Indian consumer. It is definitely a strategic move as the rival dish TV has signed Shah Rukh Khan. Tata Sky would use Khan to take the brand forward. He is not the first brand ambassador for the 21-month old DTH service provider. Hrithik Roshan was used during the Cricket World Cup in 2007 for select campaigns and other film stars like Kiron Kher and Paresh Rawal were also used for some campaigns which basically testimonial ads.
Khan will feature in all the Tata Sky ads in print, TV, outdoor and radio with the popular Tata Sky tag line Isko laga dala, to life jhingalala.
Rediffusion DY&R is the company’s creative agency.
Internet In India At A Growth Path
All internet loves must thanks comScore Networks on releasing the survey result which claims that the India has emerged as the fastest growing country of Internet users, surpassing the growth rates in the US, China, Japan. However, India is not there in the top 10 countries in terms of average monthly hours online per unique visitor.
comScore Networks also reports that India ranked eighth in terms of number of internet users as of January 2007. The US has the largest internet population of 153 million followed by China ( 86.8 million), Japan (53.6 million), Germany (32 million) and the UK (30 million) in the top five. The growth in the internet penetration can also be attributed to the fact that India grew at 33 per cent, while the world average was 10 per cent. I believe that the Indian Internet market is still at nascent stage and we hardly have any Internet success story. Indian Internet space needs a few Indian internet brands. I believe that its not enough to have just rediff, Indiatimes, and naukri. In current business scenario the Indian Internet market one needs a path breaking indigenous idea, two a local idea with global standard execution, three experimentation with local content. In current market scenario I can only see that the market is mushroomed with too many me-too ventures. I believe that Indian market is yet not explored well and needs experimentation.
No wonder VC firms from Silicon Valley now focusing on India and several Indian companies as part of their portfolio. The global VC films like Sequoia India, Helion, Matrix Partners, Norwest Venture Partners, Canaan Partners, NEA IndoUS Venture Fund , and KPCB in last few years have funded various Indian internet ventures. The internet companies which got vc funding are Guruji, Travelguru, MingleBox, ApnaLoan, Shaadi, Komli, MakeMyTrip, seventymm, Yatra, Sulekha, bharatmatrimony, cleartrip, naukri to name a few. A close look on these internet venture tells yet another story. These internet ventures can be classified into lifestyle, travel, or existing, prominent portals. All these internet ventures with low internet population are managing the revenue is a commendable task. A close look on these entire ventures also indicates that they are playing in the field which is closely linked to corporate world. Naukri is a job board; Travelguru, MakeMyTrip, Yatra are travel portals with focus on corporate or office goers.
comScore Networks also reports that India ranked eighth in terms of number of internet users as of January 2007. The US has the largest internet population of 153 million followed by China ( 86.8 million), Japan (53.6 million), Germany (32 million) and the UK (30 million) in the top five. The growth in the internet penetration can also be attributed to the fact that India grew at 33 per cent, while the world average was 10 per cent. I believe that the Indian Internet market is still at nascent stage and we hardly have any Internet success story. Indian Internet space needs a few Indian internet brands. I believe that its not enough to have just rediff, Indiatimes, and naukri. In current business scenario the Indian Internet market one needs a path breaking indigenous idea, two a local idea with global standard execution, three experimentation with local content. In current market scenario I can only see that the market is mushroomed with too many me-too ventures. I believe that Indian market is yet not explored well and needs experimentation.
No wonder VC firms from Silicon Valley now focusing on India and several Indian companies as part of their portfolio. The global VC films like Sequoia India, Helion, Matrix Partners, Norwest Venture Partners, Canaan Partners, NEA IndoUS Venture Fund , and KPCB in last few years have funded various Indian internet ventures. The internet companies which got vc funding are Guruji, Travelguru, MingleBox, ApnaLoan, Shaadi, Komli, MakeMyTrip, seventymm, Yatra, Sulekha, bharatmatrimony, cleartrip, naukri to name a few. A close look on these internet venture tells yet another story. These internet ventures can be classified into lifestyle, travel, or existing, prominent portals. All these internet ventures with low internet population are managing the revenue is a commendable task. A close look on these entire ventures also indicates that they are playing in the field which is closely linked to corporate world. Naukri is a job board; Travelguru, MakeMyTrip, Yatra are travel portals with focus on corporate or office goers.
Emergence of Multiplex in India
In 1979, world’s first multiplex ‘Eaton Center’ in Toronto, Canada was opened for the general public. The Eaton Center has 18-screen movie theater complex. Eaton’s movie centers, which were a craze during the 1980s and 1990s, faded slowly and closed finally in March 2001.
In 1997 PVR established, first multiplex in India – PVR Anupam at Saket, New Delhi. The PVR Anupam changed the Indian movie exhibition landscape. Movie exhibition till mid nineties was dominated by Cinema halls – the traditionally single screen halls. Cinema halls witnessed a surge of customers mostly during the festive season and on weekends. The emergence of multiplexes changed the movie exhibition business in India. Today, all eyes in the entertainment industry have turned towards multiplexes, as they generate a larger share of revenue though they accommodate less number of seats per theater.
The emergence of new multiplexes has reduced the audience for traditional cinemas, thereby prompting some of them to transform themselves into multiplexes. The multiplex business is not only prompting traditional cinema theater owners to convert their property into multiplex but in recent times has also attracted many international players to venture into the business. No wonder the multiplex business is so lucrative that foreign entertainment giants like Time Warner, South Korean multiplex operator Megabox, and Australia’s Hoyts are in talks with real estate developers such as the DLF group, the Raheja Group and Sobha Developers to set up chains of multiplexes across the country. We should not forget that roughly a dozen Indian players have entered in the business in small or big way.
New players are trying to enter this sector and the existing players are busy expanding their horizons. In recent times the multiplex has gone beyond the metros to redefine entertainment in Tier 1 and Tier 2 cities like Lucknow, Indore, Nasik, Aurangabad, Kanpur, Amritsar. The good news for most of the movie exhibitors is that at present roughly 70 percent of the total box office collections in the country come from non metros.
These multiplex has multiple screen movie theater complex which also offers lifestyle shopping. It offers brand new experience of watching movies. Today multiplex are considered not just a part of the entertainment, it is an opportunity for family outing which include movies, shopping, eating out, gaming parlors, buying books, buying groceries, etc. Most of the multiplexes malls in India have common structure, which I believe is structure of the ideal multiplex. Ideal multiplex malls have a four to five floors with various leisure and recreation options for customers. The top floor has multiplex and rest of the floors offer facilities like shopping, eating out, gaming parlors, book shops, groceries, etc. The structure of the multiplex mall explores the consumer psychology, where customers who come with the intention of watching a movie are made to pass all the floors in the shopping mall. It increases the possibility of their making some impulsive purchases. I don’t know about other but I end up buying something every time I go to watch movies. Moreover, the multiplexes do not allow outside food and beverages into the movie theaters which offer them opportunities to sale of their own products at a premium.
The decade old Indian multiplex industry has definitely changed the movie exhibition industry in India. The multiplex industry, in India, is still in an early growth stage, and is way behind the size and scale reached in the developed countries.
In 1997 PVR established, first multiplex in India – PVR Anupam at Saket, New Delhi. The PVR Anupam changed the Indian movie exhibition landscape. Movie exhibition till mid nineties was dominated by Cinema halls – the traditionally single screen halls. Cinema halls witnessed a surge of customers mostly during the festive season and on weekends. The emergence of multiplexes changed the movie exhibition business in India. Today, all eyes in the entertainment industry have turned towards multiplexes, as they generate a larger share of revenue though they accommodate less number of seats per theater.
The emergence of new multiplexes has reduced the audience for traditional cinemas, thereby prompting some of them to transform themselves into multiplexes. The multiplex business is not only prompting traditional cinema theater owners to convert their property into multiplex but in recent times has also attracted many international players to venture into the business. No wonder the multiplex business is so lucrative that foreign entertainment giants like Time Warner, South Korean multiplex operator Megabox, and Australia’s Hoyts are in talks with real estate developers such as the DLF group, the Raheja Group and Sobha Developers to set up chains of multiplexes across the country. We should not forget that roughly a dozen Indian players have entered in the business in small or big way.
New players are trying to enter this sector and the existing players are busy expanding their horizons. In recent times the multiplex has gone beyond the metros to redefine entertainment in Tier 1 and Tier 2 cities like Lucknow, Indore, Nasik, Aurangabad, Kanpur, Amritsar. The good news for most of the movie exhibitors is that at present roughly 70 percent of the total box office collections in the country come from non metros.
These multiplex has multiple screen movie theater complex which also offers lifestyle shopping. It offers brand new experience of watching movies. Today multiplex are considered not just a part of the entertainment, it is an opportunity for family outing which include movies, shopping, eating out, gaming parlors, buying books, buying groceries, etc. Most of the multiplexes malls in India have common structure, which I believe is structure of the ideal multiplex. Ideal multiplex malls have a four to five floors with various leisure and recreation options for customers. The top floor has multiplex and rest of the floors offer facilities like shopping, eating out, gaming parlors, book shops, groceries, etc. The structure of the multiplex mall explores the consumer psychology, where customers who come with the intention of watching a movie are made to pass all the floors in the shopping mall. It increases the possibility of their making some impulsive purchases. I don’t know about other but I end up buying something every time I go to watch movies. Moreover, the multiplexes do not allow outside food and beverages into the movie theaters which offer them opportunities to sale of their own products at a premium.
The decade old Indian multiplex industry has definitely changed the movie exhibition industry in India. The multiplex industry, in India, is still in an early growth stage, and is way behind the size and scale reached in the developed countries.
Raj Television Network Ltd Plans to Enter Print Media
The south Indian state Tamil Nadu has around 30 regional language newspapers, including heavyweights such as Dinakaran, Dinamalar and the Daily Thanthi. Dinakaran, owned by the Sun TV group, is the market leader, with a total daily circulation of around one million copies during January-June, according to the Audit Bureau of Circulations. In such a cluttered market the Raj Television Network is planning a print foray – Sun TV groups are you listening.
The Raj Television Network was started in 1994 to provide wholesome entertainment for the entire family. The group has programmes targeted at young and old, male and female alike. The Network with unique set of programs has positioned itself as The People's Channel. The Raj Television Network, like other Indian media companies is looking forward to expand their portfolio and emerge as the complete media house. The Raj Television Network once has a print presence would help in terms of selling advertisements across television and newspapers.
Raj Television Network Ltd plans to enter the print media and is open to acquiring a Tamil newspaper. The company is evaluating options on its print entry as certain players operating in the regional space have approached it to sell their business. Moreover, the company plans to raise INR 50 to 100 crore from private equity firms to build a studio, office complex for its film production business.
The Raj Television Network was started in 1994 to provide wholesome entertainment for the entire family. The group has programmes targeted at young and old, male and female alike. The Network with unique set of programs has positioned itself as The People's Channel. The Raj Television Network, like other Indian media companies is looking forward to expand their portfolio and emerge as the complete media house. The Raj Television Network once has a print presence would help in terms of selling advertisements across television and newspapers.
Raj Television Network Ltd plans to enter the print media and is open to acquiring a Tamil newspaper. The company is evaluating options on its print entry as certain players operating in the regional space have approached it to sell their business. Moreover, the company plans to raise INR 50 to 100 crore from private equity firms to build a studio, office complex for its film production business.
Fundamental Principles of Retailing
The retailers regard Sam Walton as the God of Retailing. He has written rules of retailing and rewritten them for the continuous growth. In 1962, Sam Walton founded his company with the three guiding principles that is regarded as the fundamental principles of success. These fundamental principles are relevant to retailer’s business across geography:
Respect the Individual
Our people make the difference – is a reality at Wal-Mart. The company believes that at Wal-Mart the groups of dedicated, hard-working, ordinary people coherently being teamed up, accomplish extraordinary things.
Service to the Customers
Customers are welcomed as messengers of Pluto – The Greek God of wealth and prosperity – at Wal-Mart. It is the continuous effort on the part of the earnest Wal-Mart’s employees to provide the best customer service at the lowest price. At Wal-Mart employee believes that they are nothing without customers and they make sure customer’s hard-earned money stretch further by offering quality merchandise at the lowest price and with the best customer service possible.
Strive for Excellence
Sam Walton believed in striving for excellence before it became fashionable. No wonder Wal-Mart is growing continuously in a large volume and can offers high quality products for low price, which is deserved by the customers. At Wal-Mart employees try to find innovative ways to push boundaries and constantly improve and innovate. They know that Sam Walton is never satisfied with the fact that prices are as low as they could be or that the products’ quality at Wal-Mart is as high as customers deserved.
These three fundamental principles has not only fueled the growth of the Wal-Mart but also help them innovate the way retailers do business. In my views if any retailers want to grow and make big in India or global landscape need to follow the basics of rule. I have seen many Indian retailers trying their hands with technology for success instead of sticking with the fundamentals. Probably they need to understand that technology is one of the elements of the fundamental principles not the mantra of growth.
Respect the Individual
Our people make the difference – is a reality at Wal-Mart. The company believes that at Wal-Mart the groups of dedicated, hard-working, ordinary people coherently being teamed up, accomplish extraordinary things.
Service to the Customers
Customers are welcomed as messengers of Pluto – The Greek God of wealth and prosperity – at Wal-Mart. It is the continuous effort on the part of the earnest Wal-Mart’s employees to provide the best customer service at the lowest price. At Wal-Mart employee believes that they are nothing without customers and they make sure customer’s hard-earned money stretch further by offering quality merchandise at the lowest price and with the best customer service possible.
Strive for Excellence
Sam Walton believed in striving for excellence before it became fashionable. No wonder Wal-Mart is growing continuously in a large volume and can offers high quality products for low price, which is deserved by the customers. At Wal-Mart employees try to find innovative ways to push boundaries and constantly improve and innovate. They know that Sam Walton is never satisfied with the fact that prices are as low as they could be or that the products’ quality at Wal-Mart is as high as customers deserved.
These three fundamental principles has not only fueled the growth of the Wal-Mart but also help them innovate the way retailers do business. In my views if any retailers want to grow and make big in India or global landscape need to follow the basics of rule. I have seen many Indian retailers trying their hands with technology for success instead of sticking with the fundamentals. Probably they need to understand that technology is one of the elements of the fundamental principles not the mantra of growth.
Retailing in India a Three Dimensional Matrixes
Retail has always been an alluring business proposition and the corporate in recent times has shown keen interest in Indian retailing. The size of India's retail trade is estimated at $330* billion and growing at five per cent annually, according to KSA Technopak, retail advisory which closely tracks the trade. The size of Indian retail is not only attracting domestic players but also attracting international players to India.
The Indian retail scenario is booming and Indian retailers are doing well across the board. Current profits in the organised retail trade are good and the future seems even more alluring. There is evidence that the average urban consumer is saving less today than he did a few years ago and importantly, spending his income on a wider array of goods than earlier. Moreover, the increase in the income level, ever growing double income group, is helping retail grow as consumers is willing pay premium for the newer and better brands. Having discussed this I must mention that there is other segment which is still highly price sensitive and is always looking out for the bargain. There is yet another segment who is daily wages earners. These sets of people buy their grocery based on their requirements, daily.
Retailing in India is developing on three dimensional matrixes where retailers operate as a local, regional and global player. Irrespective of the format and size there is scope for growth for each set of players which widely depend on the needs of the market. Having said this I believe that the Indian retail is not offering equal opportunity to players in the market be it tradition retailers, modern retailers or the international players. As per the rule, foreign retailers cannot yet start operations in their name in India. However, with Minister for Commerce and Industry Kamal Nath announcing that foreign investment would soon be allowed in retailing is a big savior. The traditional trade is finding it difficult to survive in the race of modern retailing. And the domestic modern retailers are facing their own set of problems. It is always difficult to manage and establish equilibrium in the three dimensional plane – the plane in which Indian retail operating.
* The Indian retail market, which is the fifth largest retail destination globally, according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by
The Indian retail scenario is booming and Indian retailers are doing well across the board. Current profits in the organised retail trade are good and the future seems even more alluring. There is evidence that the average urban consumer is saving less today than he did a few years ago and importantly, spending his income on a wider array of goods than earlier. Moreover, the increase in the income level, ever growing double income group, is helping retail grow as consumers is willing pay premium for the newer and better brands. Having discussed this I must mention that there is other segment which is still highly price sensitive and is always looking out for the bargain. There is yet another segment who is daily wages earners. These sets of people buy their grocery based on their requirements, daily.
Retailing in India is developing on three dimensional matrixes where retailers operate as a local, regional and global player. Irrespective of the format and size there is scope for growth for each set of players which widely depend on the needs of the market. Having said this I believe that the Indian retail is not offering equal opportunity to players in the market be it tradition retailers, modern retailers or the international players. As per the rule, foreign retailers cannot yet start operations in their name in India. However, with Minister for Commerce and Industry Kamal Nath announcing that foreign investment would soon be allowed in retailing is a big savior. The traditional trade is finding it difficult to survive in the race of modern retailing. And the domestic modern retailers are facing their own set of problems. It is always difficult to manage and establish equilibrium in the three dimensional plane – the plane in which Indian retail operating.
* The Indian retail market, which is the fifth largest retail destination globally, according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by
Reliance Big Entertainment Acquires Majority Stake in Willow
The company in news is Willow.TV. It is the world’s leading portal for live Internet streaming of all Cricket events worldwide, and has been providing live streaming video of every major cricket series since 2003. It is a paid site with a subscriber base of over a million registered users, primarily in the US, Canada, Australia and Europe. It provides subscribers with an unparalleled viewing experience with enhancements such as live interactive scorecards and high bandwidth video streams as well as mobile and IM offerings
Willow.TV, last year, streamed all major cricket events live, including the iconic Indian Premier League, as well as all Australian, South African and English international matches. The Willow.TV gain maximum visibility in India when it telecasted the Indian Premier League.
Reliance Big Entertainment, a ADAG company, which is on buying spree, has acquired a majority stake in the US-based cricket webcasting portal - Willow TV. According to the report The Anil Ambani company will invest Rs 300 crore in the portal over the next two years. The amount also includes the acquisition price of the portal.
Reliance Big Entertainment has been aggressively strengthening its position in the entertainment and media space and has been building value across the value chain. The acquisition will strengthen the presence of Reliance Big Entertainment in new media.
Willow.TV, last year, streamed all major cricket events live, including the iconic Indian Premier League, as well as all Australian, South African and English international matches. The Willow.TV gain maximum visibility in India when it telecasted the Indian Premier League.
Reliance Big Entertainment, a ADAG company, which is on buying spree, has acquired a majority stake in the US-based cricket webcasting portal - Willow TV. According to the report The Anil Ambani company will invest Rs 300 crore in the portal over the next two years. The amount also includes the acquisition price of the portal.
Reliance Big Entertainment has been aggressively strengthening its position in the entertainment and media space and has been building value across the value chain. The acquisition will strengthen the presence of Reliance Big Entertainment in new media.
Nazara Technologies to Launch Eklavya,and Yudhistra in Mobile Game
Nazara Technologies is a leading mobile entertainment company focused on the 100 million plus mobile subscriber base in India. The company specialise in localized content that is relevant in India. They have developeed a range of branded and original mobile content that is highly relevant to the culturally diverse consumer base in the country.
Nazara Technologies specialises in high-end 3D graphics, fast multiplayer services. The company has aggressive plans to develop games, and a multiplayer platform to cater to the growing demand. They also have plans to launch cross platform gaming that integrates with Internet and DTH.
Eklavya, The Great Yudhistra soon on iPhone
The mobile gaming company Nazara Technologies is in talks with Apple Computers, maker of iPhone, and its two Indian retailers Airtel and Vodafone Essar to develop a couple of mythology-based games which would be available in the next 4-6 months. The dedicated team of professionals is working on the mythological games such as Eklavya and The Great Yudhistra for iPhones.
Once Nazara Technologies launch the game for the iPhone subscribers the user can doenload the game for retailer sites. The cost of each download would be between INR 30-50 for the subscribers.
Nazara Technologies specialises in high-end 3D graphics, fast multiplayer services. The company has aggressive plans to develop games, and a multiplayer platform to cater to the growing demand. They also have plans to launch cross platform gaming that integrates with Internet and DTH.
Eklavya, The Great Yudhistra soon on iPhone
The mobile gaming company Nazara Technologies is in talks with Apple Computers, maker of iPhone, and its two Indian retailers Airtel and Vodafone Essar to develop a couple of mythology-based games which would be available in the next 4-6 months. The dedicated team of professionals is working on the mythological games such as Eklavya and The Great Yudhistra for iPhones.
Once Nazara Technologies launch the game for the iPhone subscribers the user can doenload the game for retailer sites. The cost of each download would be between INR 30-50 for the subscribers.
Special Economy Zone in India – Lessons from China
In the late 1970s, the Indian and Chinese economies were comparable. The Chinese economy in the 1980s and 1990s cruised ahead of India, and today it finds itself at the top in all sectors against India except in software and knowledge-based products. Special Economy Zone is one of the backbones of the growth of the Chinese economy.
The journey of the Special Economy Zone in India started in year 2000 when M Maran, then Commerce Minister, made a tour to the southern provinces of China and realized the importance of SEZ. On returning from the visit, he incorporated the SEZ into the Exim Policy of India and after five year, Special Economic Zones Act 2005 was introduced and in 2006 SEZ Rules was formulated. The formation of the Special Economic Zones Act was not the first initiative of its kind by Indian government. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. The experiment with the Export Processing Zone did not do wonder with the Indian economy.
The government, economists, and entrepreneurs jointly studied the Chinese SEZ model. After through analysis of the Chinese SEZ model, they decided to start the SEZs in strategic locations close to port cities and economic centers.
Lessons from China’s SEZs
In 1979, China started four SEZs and after ten long years the fifth one was set up in 1988. The Chinese government analyse the trends of the first four SEZs and based on that they started the fifth SEZ.
The SEZs in China are located on the coastline near Hong Kong and Taiwan which are major economic centers in the region. A large chunk of the FDI was contributed by the non-resident Chinese from Hong Kong and Taiwan, who invested in labor intensive industries. The size of the SEZs has been an important factor in the success of China’s reforms process. Government of China has gone a step forward and declared the entire region or province as a SEZ. In china, cities along the sea coast, including Shanghai, were opened up for foreign investments and given a status comparable to SEZs. Moreover, the hire and fire policy has attracted foreign investors to invest in China’s SEZs. The flexible labor policy of China was the biggest attraction for the foreign investors.
India Go Forward
In current market scenario when the global manufacturing bases are shifting from the developed countries to the developing countries. The countries like India and China hold good future, primarily due to cheap factor prices and proximity to new markets. In the emerged scenario, the Indian SEZ can easily attract FDI in manufacturing provided they offer hassle-free environment for the investors and all necessary fiscal incentives. Indian SEZ can do wonders the way china had done in past. The Indian SEZ have to remember that the Chinese SEZ were large in size, attracted FDI from the nonresident Chinese, government offered attractive incentives. The Chinese government promoted SEZ with flexible labor laws, liberal customs procedures and decentralization of power to the local authorities.
The journey of the Special Economy Zone in India started in year 2000 when M Maran, then Commerce Minister, made a tour to the southern provinces of China and realized the importance of SEZ. On returning from the visit, he incorporated the SEZ into the Exim Policy of India and after five year, Special Economic Zones Act 2005 was introduced and in 2006 SEZ Rules was formulated. The formation of the Special Economic Zones Act was not the first initiative of its kind by Indian government. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. The experiment with the Export Processing Zone did not do wonder with the Indian economy.
The government, economists, and entrepreneurs jointly studied the Chinese SEZ model. After through analysis of the Chinese SEZ model, they decided to start the SEZs in strategic locations close to port cities and economic centers.
Lessons from China’s SEZs
In 1979, China started four SEZs and after ten long years the fifth one was set up in 1988. The Chinese government analyse the trends of the first four SEZs and based on that they started the fifth SEZ.
The SEZs in China are located on the coastline near Hong Kong and Taiwan which are major economic centers in the region. A large chunk of the FDI was contributed by the non-resident Chinese from Hong Kong and Taiwan, who invested in labor intensive industries. The size of the SEZs has been an important factor in the success of China’s reforms process. Government of China has gone a step forward and declared the entire region or province as a SEZ. In china, cities along the sea coast, including Shanghai, were opened up for foreign investments and given a status comparable to SEZs. Moreover, the hire and fire policy has attracted foreign investors to invest in China’s SEZs. The flexible labor policy of China was the biggest attraction for the foreign investors.
India Go Forward
In current market scenario when the global manufacturing bases are shifting from the developed countries to the developing countries. The countries like India and China hold good future, primarily due to cheap factor prices and proximity to new markets. In the emerged scenario, the Indian SEZ can easily attract FDI in manufacturing provided they offer hassle-free environment for the investors and all necessary fiscal incentives. Indian SEZ can do wonders the way china had done in past. The Indian SEZ have to remember that the Chinese SEZ were large in size, attracted FDI from the nonresident Chinese, government offered attractive incentives. The Chinese government promoted SEZ with flexible labor laws, liberal customs procedures and decentralization of power to the local authorities.
Special Economic Zone in India
History of SEZ
In 1947 when India got independence at Puerto Rico industrialist and government was busy setting up world first industrial park. Ireland and Taiwan followed Puerto Rico in sixties and in eighties China bring the SEZ to the global map with its largest SEZ at the metropolis of Shenzhen.
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. In 2000, after thirty-five years, Murlisone Maran, then Commerce Minister, made a tour to the southern provinces of China and realized the importance of SEZ. On returning from the visit, he incorporated the SEZ into the Exim Policy of India and after five year, Special Economic Zones Act 2005 was introduced and in 2006 SEZ Rules was formulated.
The main objectives of the SEZ Act include – generation of additional economic activity , promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities, and development of infrastructure facilities.
Government initiative for SEZ
Indian government to instill confidence in investors and signal their commitment towards a stable SEZ worked on the Special Economic Zones Act. In May, 2005 the Special Economic Zones Act was passed by Parliament, which received Presidential assent on the 23rd of June, 2005.
The Special Economic Zones Act 2005, after extensive consultations, came into effect on 10th February, 2006. The Act offered drastic simplification of procedures on matters relating to central as well as state governments. The main objectives of the SEZ Act include generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities, and development of infrastructure facilities. It is expected that the Special Economic Zones Act will trigger a large flow of foreign and domestic investment. Government offered various incentives to the companies in SEZ:
•Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
•100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
•Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
•External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
•Exemption from Central Sales Tax.
•Exemption from Service Tax.
•Single window clearance for Central and State level approvals.
•Exemption from State sales tax and other levies as extended by the respective State Governments.
The Special Economic Zones Act also offered major incentives and facilities to SEZ developers which include:
•Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
•Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
•Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
•Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
•Exemption from Central Sales Tax (CST).
•Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).
Apart from the above mentioned incentives the companies in SEZ require no license for import made under SEZ units. In the case of losses they are allowed to carry forward losses. The other advantages are
•No license required for import made under SEZ units.
•Duty free import or domestic procurement of goods for setting up of the SEZ units.
•Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years.
•The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export.
•“Write-off” of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization.
•No routine examination by Customs officials of export and import cargo.
•Setting up Off-shore Banking Units (OBU) allowed in SEZs.
•OBU's allowed 100% income tax exemption on profit earned for three years and 50 % for next two years.
•Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.
•Since SEZ units are considered as ‘public utility services’, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947.
The advantages of the SEZ are evident from the investment, employment, exports and infrastructural developments additionally generated. In midst of all these advantages the SEZ also has its own set of disadvantages, which include
•Revenue losses because of the various tax exemptions and incentives.
•Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.
•The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations.
The economist strongly believe that the benefits derived from the investments and additional economic activity in the SEZ and the employment generated thus will outweigh the tax exemptions and the losses on account of land acquisition.
In 1947 when India got independence at Puerto Rico industrialist and government was busy setting up world first industrial park. Ireland and Taiwan followed Puerto Rico in sixties and in eighties China bring the SEZ to the global map with its largest SEZ at the metropolis of Shenzhen.
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. In 2000, after thirty-five years, Murlisone Maran, then Commerce Minister, made a tour to the southern provinces of China and realized the importance of SEZ. On returning from the visit, he incorporated the SEZ into the Exim Policy of India and after five year, Special Economic Zones Act 2005 was introduced and in 2006 SEZ Rules was formulated.
The main objectives of the SEZ Act include – generation of additional economic activity , promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities, and development of infrastructure facilities.
Government initiative for SEZ
Indian government to instill confidence in investors and signal their commitment towards a stable SEZ worked on the Special Economic Zones Act. In May, 2005 the Special Economic Zones Act was passed by Parliament, which received Presidential assent on the 23rd of June, 2005.
The Special Economic Zones Act 2005, after extensive consultations, came into effect on 10th February, 2006. The Act offered drastic simplification of procedures on matters relating to central as well as state governments. The main objectives of the SEZ Act include generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities, and development of infrastructure facilities. It is expected that the Special Economic Zones Act will trigger a large flow of foreign and domestic investment. Government offered various incentives to the companies in SEZ:
•Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
•100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
•Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
•External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
•Exemption from Central Sales Tax.
•Exemption from Service Tax.
•Single window clearance for Central and State level approvals.
•Exemption from State sales tax and other levies as extended by the respective State Governments.
The Special Economic Zones Act also offered major incentives and facilities to SEZ developers which include:
•Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
•Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
•Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
•Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
•Exemption from Central Sales Tax (CST).
•Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).
Apart from the above mentioned incentives the companies in SEZ require no license for import made under SEZ units. In the case of losses they are allowed to carry forward losses. The other advantages are
•No license required for import made under SEZ units.
•Duty free import or domestic procurement of goods for setting up of the SEZ units.
•Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years.
•The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export.
•“Write-off” of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization.
•No routine examination by Customs officials of export and import cargo.
•Setting up Off-shore Banking Units (OBU) allowed in SEZs.
•OBU's allowed 100% income tax exemption on profit earned for three years and 50 % for next two years.
•Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.
•Since SEZ units are considered as ‘public utility services’, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947.
The advantages of the SEZ are evident from the investment, employment, exports and infrastructural developments additionally generated. In midst of all these advantages the SEZ also has its own set of disadvantages, which include
•Revenue losses because of the various tax exemptions and incentives.
•Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.
•The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations.
The economist strongly believe that the benefits derived from the investments and additional economic activity in the SEZ and the employment generated thus will outweigh the tax exemptions and the losses on account of land acquisition.
Strategy as Simple Rules
Strategy as Simple Rules
I for long debated with friends and academicians that the management of new age companies in India like Future Group, Wipro, Infosys, Satyam had no strategic bent of mind. The only positive thing about the management of these companies was starting the respective business at right time which is no mean task. They utilized every opportunity in their growth path very well; they were highly flexible. I was not ready to accept the fact that they were genius, and they had strategy. The article – Strategy as Simple Rules – changed my views and I started respecting the management of these companies.
I always believed in the rule of simple and try and practice in my life. The believe was cemented when I read article ‘Strategy as Simple Rules’ written by Kathleen M. Eisenhardt, a professor of strategy and organization at Stanford University in California and Donald N. Sull, an assistant professor at Harvard Business School in Boston. A must read article for every business professional. The authors in the article advocate that when the business landscape was simple, companies could afford to have complex strategies. But now that business is so complex, they need to simplify. I strongly believe in the rule of simple. My profession doesn’t advocate it though.
The article talks about the success of Yahoo! – The company began as a catalog of Web sites, became a content aggregator, and eventually grew into a community of users. Yahoo today is a broad network of media, commerce, and communication services. The other internet success story like eBay, America Online, and Google, also rose to prominence by pursuing constantly evolving strategies in market spaces that were considered unattractive according to traditional measures. In Indian context I believe the companies which in recent past have seen tremendous growth like Ranbaxy, Future Group, Wipro, Infosys, and Satyam knowingly or unknowingly followed the rule of simple. They did not compartmentalize themselves in one single space and instead focused on growth. These Indian companies attained the current state of prominence by pursuing constantly evolving strategies in market spaces that were considered unattractive. Managers of these companies – both global and Indian identified the opportunity in the chaotic markets. They jump into chaotic markets, probe for opportunities, build on successful forays, and shift flexibly among opportunities as circumstances dictate. In the chaos they recognize the need for a few key strategic processes and a few simple rules.
I would request all management professionals to read this interesting article - Strategy as Simple Rules’ written by Kathleen M. Eisenhardt, and Donald N. Sull, published by harvard business review. Article is avilable at
Simple Rules, Summarized
How-to rules – They spell out key features of how a process is executed –“What makes our process unique?”
Boundary rules – They focus managers on which opportunities can be pursued and which are outside the pale.
Priority rules – They help managers rank the accepted opportunities.
Timing rules – They synchronize managers with the pace of emerging opportunities and other parts of the company.
Exit rules – They help managers decide when to pull out of yesterday’s opportunities.
I for long debated with friends and academicians that the management of new age companies in India like Future Group, Wipro, Infosys, Satyam had no strategic bent of mind. The only positive thing about the management of these companies was starting the respective business at right time which is no mean task. They utilized every opportunity in their growth path very well; they were highly flexible. I was not ready to accept the fact that they were genius, and they had strategy. The article – Strategy as Simple Rules – changed my views and I started respecting the management of these companies.
I always believed in the rule of simple and try and practice in my life. The believe was cemented when I read article ‘Strategy as Simple Rules’ written by Kathleen M. Eisenhardt, a professor of strategy and organization at Stanford University in California and Donald N. Sull, an assistant professor at Harvard Business School in Boston. A must read article for every business professional. The authors in the article advocate that when the business landscape was simple, companies could afford to have complex strategies. But now that business is so complex, they need to simplify. I strongly believe in the rule of simple. My profession doesn’t advocate it though.
The article talks about the success of Yahoo! – The company began as a catalog of Web sites, became a content aggregator, and eventually grew into a community of users. Yahoo today is a broad network of media, commerce, and communication services. The other internet success story like eBay, America Online, and Google, also rose to prominence by pursuing constantly evolving strategies in market spaces that were considered unattractive according to traditional measures. In Indian context I believe the companies which in recent past have seen tremendous growth like Ranbaxy, Future Group, Wipro, Infosys, and Satyam knowingly or unknowingly followed the rule of simple. They did not compartmentalize themselves in one single space and instead focused on growth. These Indian companies attained the current state of prominence by pursuing constantly evolving strategies in market spaces that were considered unattractive. Managers of these companies – both global and Indian identified the opportunity in the chaotic markets. They jump into chaotic markets, probe for opportunities, build on successful forays, and shift flexibly among opportunities as circumstances dictate. In the chaos they recognize the need for a few key strategic processes and a few simple rules.
I would request all management professionals to read this interesting article - Strategy as Simple Rules’ written by Kathleen M. Eisenhardt, and Donald N. Sull, published by harvard business review. Article is avilable at
Simple Rules, Summarized
How-to rules – They spell out key features of how a process is executed –“What makes our process unique?”
Boundary rules – They focus managers on which opportunities can be pursued and which are outside the pale.
Priority rules – They help managers rank the accepted opportunities.
Timing rules – They synchronize managers with the pace of emerging opportunities and other parts of the company.
Exit rules – They help managers decide when to pull out of yesterday’s opportunities.
Shah Rukh Khan The King of Endorsements
In 1993, Shah Rukh Khan first appeared in three ads for tea brand Brahmaputra. The ads heralded the arrival of Shah Rukh Khan as a brand endorser of some stature. The very next year, he ended up endorsing three more brands – Hero Puch, Cinthol and Mayur Suitings. The series of his hits not only established him as a super star of film industry but also positioned him as a bankable endorser.
In 1996 he was signed by cola giant Pepsi, which can be seen as the turning point of his endorsement career. Shah Rukh Khan since then, has endorsed Bagpiper, Hyundai Santro and i10, Top Ramen noodles, Jeanne Arthes, Clinic All Clear shampoo, Emami-Sona Chandi Chyawanprash, Lux, Omega, Airtel, Nokia, sunfeast, Compaq, Home Trade, Videocon to name a few.
The superstar Shah Rukh Khan has 34 brand endorsement deals for year 2008 which is down from 37 endorsement brand in year 2007. I believe that other celebrity like Hrithik Roshan, Salman Khan, Aamir Khan and Akshay kumar have not shown great interest in the endorsement market. In the given scenario it is important to understand what makes him the most popular celebrity brand endorser around?
Shah Rukh Khan has been around for a long time, and has become a bankable name. He is the only one who has proved to be consistent for last fifteen years (since the release of his first movie in 1992). In recent past we have seen that the actors like Hrithik Roshan, Salman Khan, Aamir Khan and Akshay kumar are also consistent and bankable name of the Indian film industry but they are not the corporate world darling. In my views corporate world not only look for these two factors there are something more than this. The other important factors are – corporate friendliness, image of celebrity, brand personality of celebrity.
Marketers claim that Shah Rukh Khan’s appeal cuts across age, gender, and class, and blends the characteristics that mirror multiple identities – the ordinary middle class guy who went on to became the King. The king is a traditional and family loving Indian.
The biggest plus about the actor Shah Rukh Khan is that he holds self-made man image. The common Indian man associates with him and aspires to become Shah Rukh Khan. In last few years Akshay kumar has also attained status of self-made man which is challenge to the king. The other plus about Shah Rukh Khan is his image of down-to-earth, approachable person and his ability of straddling the classes and the masses. He is not niche actor like Aamir, and not even a down market actor like Govinda. In this parameter also Akshay kumar has taken a lead. This new image of the Bollywood star Akshay kumar can be a threat to the Shah Rukh Khan’s endorsement kingdom.
The fact that Shah Rukh Khan has been so overexposed by advertising leaves little room for credibility among consumers. I can’t imagine Shah Rukh Khan driving Huandi Santro or i10 but the fact that the Shah Rukh Khan’s fans still associate him with the products is doing wonders for him.
Amitabh Bachchan – The Biggest Celebrity Endorser of All Time
The celebrities are super achievers like Amitabh Bachchan, Sachin Tendulkar, Shah Rukh Khan. The celebrity has a life cycle. Among all Indian celebrities, Amitabh Bachchan is an exception. He is beyond the normal life cycle of a celebrity in terms of endorsements. Amitabh Bachchan is popular with possibly all demographic, psychographic, geographic. He commands respect across the length and breadth of India, cutting across the barriers of age, income, region and language. Today he is not only one of the successful actors but also one of the most successful endorses. Having said this I must talk about the fact that during the first two-and-a-half decades of his acting career when he was called the one-man Hindi film industry never endorsed any product.
Amitabh Bachchan
Amitabh Bachchan (Amitabh Harivansh Srivastav), born on October 11, 1942 in Allahabad, Uttar Pradesh is one of the most prominent Indian film actors of Bollywood. Amitabh Bachchan is known for his deep, baritone voice. He before entering the film industry applied for a job with All India Radio for the post of a news announcer, for which he was rejected – probably a destiny’s call. The actor also did Playback Singing for many Indian movies. The actor has also endorsed many brands and is one of the leading celebrity endorsers for Indian corporate world.
Birth of Endorser Amitabh Bachchan
In year 2000 Amitabh Bachchan, anchored Kaun Banega Crorepati (popularly known as KBC ) which positioned him into the league of the most expensive endorsers. The phenomenal success of KBC helped marketers realize that Amitabh Bachchan single-point attention-grabber. He is one Indian celebrity who could not only command attention but also lend his credibility status to the brands. He has been brand ambassador of products across industry and categories including Pepsi, Mirinda, ICICI Bank, Parker Pens, Reid & Taylor, Maruti Versa, Cadbury’s, Nerolac, Hajmola, Navratna tail, Emani Boroplus, Eveready, Dabur, Sahara city Home, D’damas, Binnani.
Amitabh Bachchan, before success of KBC had probably endorsed just one brand in mid nineties which was a corporate branding exercise for BPL. The campaign managed to position BPL as an aspirational Indian brand. After success of KBC he has endorsed brands in product categories as diverse as banking, soft drinks, batteries, paints, chocolates, automobiles, writing instruments, apparel, diet supplements, personal care and real estate.
Challenge for Endorser Amitabh Bachchan
It is believed that if the endorser is associated with many brands, exclusivity can no longer be associated with the celebrity. The audience gets confused when the same celebrity plugs many brands and hence the endorsement value gets eroded. In recent times, Amitabh Bachchan endorsement list has come down but he still endorses brands in double digits. And in my view most of his brands he endorses are doing good. I believe, if it was not Amitabh Bachchan the marketers would have been struggling with the ideas. Marketers can position Amitabh Bachchan as an action hero; an energizing personality; a jovial character; an advisor; a spokesperson; Mr. dependable and not to miss a passionate endorser – there is lot in Amitabh Bachchan which is unexplored. Having said this strongly advocate that marketers needs to use the celebrity power of Amitabh Bachchan judiciously.
Amitabh Bachchan
Amitabh Bachchan (Amitabh Harivansh Srivastav), born on October 11, 1942 in Allahabad, Uttar Pradesh is one of the most prominent Indian film actors of Bollywood. Amitabh Bachchan is known for his deep, baritone voice. He before entering the film industry applied for a job with All India Radio for the post of a news announcer, for which he was rejected – probably a destiny’s call. The actor also did Playback Singing for many Indian movies. The actor has also endorsed many brands and is one of the leading celebrity endorsers for Indian corporate world.
Birth of Endorser Amitabh Bachchan
In year 2000 Amitabh Bachchan, anchored Kaun Banega Crorepati (popularly known as KBC ) which positioned him into the league of the most expensive endorsers. The phenomenal success of KBC helped marketers realize that Amitabh Bachchan single-point attention-grabber. He is one Indian celebrity who could not only command attention but also lend his credibility status to the brands. He has been brand ambassador of products across industry and categories including Pepsi, Mirinda, ICICI Bank, Parker Pens, Reid & Taylor, Maruti Versa, Cadbury’s, Nerolac, Hajmola, Navratna tail, Emani Boroplus, Eveready, Dabur, Sahara city Home, D’damas, Binnani.
Amitabh Bachchan, before success of KBC had probably endorsed just one brand in mid nineties which was a corporate branding exercise for BPL. The campaign managed to position BPL as an aspirational Indian brand. After success of KBC he has endorsed brands in product categories as diverse as banking, soft drinks, batteries, paints, chocolates, automobiles, writing instruments, apparel, diet supplements, personal care and real estate.
Challenge for Endorser Amitabh Bachchan
It is believed that if the endorser is associated with many brands, exclusivity can no longer be associated with the celebrity. The audience gets confused when the same celebrity plugs many brands and hence the endorsement value gets eroded. In recent times, Amitabh Bachchan endorsement list has come down but he still endorses brands in double digits. And in my view most of his brands he endorses are doing good. I believe, if it was not Amitabh Bachchan the marketers would have been struggling with the ideas. Marketers can position Amitabh Bachchan as an action hero; an energizing personality; a jovial character; an advisor; a spokesperson; Mr. dependable and not to miss a passionate endorser – there is lot in Amitabh Bachchan which is unexplored. Having said this strongly advocate that marketers needs to use the celebrity power of Amitabh Bachchan judiciously.
Idea of Positioning and Differentiation
The two different books positioning and differentiation says the same thing. The book by Jack Trout on differentiation – Differentiate or Die is repackaging of his book coauthored with Al Ries on positioning – Positioning: The Battle for Your Mind. In my views when Jack Trout separated from Al Ries wrote Differentiate or Die to position Trout & Partners Ltd. Truly a positioning genius. I strongly believe that it hardly matters what you call the activity of buying share of consumer mind – positioning or differentiation you are doing same thing.
Brand managers across globe are busy differentiating their products or say working hard to position them. However, the major problems with most of the companies are that they don’t understand the concept of differentiation or positioning. In most of the cases they work on differentiation for the sake of differentiation. The situations in a few cases are so grim that some brand managers really don’t know the difference between a name and a brand. Addressing similar situation, Sergio Zyman, and Armin Brott says that If you don’t keep giving customers reasons to buy from you, they won’t. Awareness is absolutely worthless if it doesn’t lead to sales. In my views one can’t blame the brand manager solely for the problem. The problem of positioning also depends on the proliferation of me-too products. Today any company can come out with almost similar product that their competitors have within a few days.
The brand managers of successful brands take their brand for granted. They don’t work on them regularly and as a result the charisma of brand goes down. It is vital to remember that even the strongest brands don’t stay their way without working on them regularly. They need repositioning or for your convenience you may call it brand maintenance. The brand needs to be renewed or redefined constantly, else it will die.
The market analyst firm also correlate branding with the data analysis and ROI of marketing; and few other marketers believe that it’s advertising which position products. In my vies branding is not only about advertising and data analysis – it’s also about understanding how consumer lives are changing and how is it impacting consumer preferences. I believe branding is also about developing and implementing strategy which is grounded on a deep understanding of consumers that connects companies. Authors, Sergio Zyman, and Armin Brott in their book The End of Advertising as We Know It says that Advertising is a lot more than just television commercials – it includes branding, packaging, celebrity spokespersons, sponsorships, publicity, customer service, the way you treat your employees, and even the way your secretary answers the phone.
Brand managers across globe are busy differentiating their products or say working hard to position them. However, the major problems with most of the companies are that they don’t understand the concept of differentiation or positioning. In most of the cases they work on differentiation for the sake of differentiation. The situations in a few cases are so grim that some brand managers really don’t know the difference between a name and a brand. Addressing similar situation, Sergio Zyman, and Armin Brott says that If you don’t keep giving customers reasons to buy from you, they won’t. Awareness is absolutely worthless if it doesn’t lead to sales. In my views one can’t blame the brand manager solely for the problem. The problem of positioning also depends on the proliferation of me-too products. Today any company can come out with almost similar product that their competitors have within a few days.
The brand managers of successful brands take their brand for granted. They don’t work on them regularly and as a result the charisma of brand goes down. It is vital to remember that even the strongest brands don’t stay their way without working on them regularly. They need repositioning or for your convenience you may call it brand maintenance. The brand needs to be renewed or redefined constantly, else it will die.
The market analyst firm also correlate branding with the data analysis and ROI of marketing; and few other marketers believe that it’s advertising which position products. In my vies branding is not only about advertising and data analysis – it’s also about understanding how consumer lives are changing and how is it impacting consumer preferences. I believe branding is also about developing and implementing strategy which is grounded on a deep understanding of consumers that connects companies. Authors, Sergio Zyman, and Armin Brott in their book The End of Advertising as We Know It says that Advertising is a lot more than just television commercials – it includes branding, packaging, celebrity spokespersons, sponsorships, publicity, customer service, the way you treat your employees, and even the way your secretary answers the phone.
Parsvnath SEZ Ltd. appoints three independent directors
Parsvnath Developers Limited is one of the leading real estate companies in India. The Parsvnath Group has a diverse business portfolio of commercial complexes, shopping malls, integrated townships and group housing. Besides strengthening its position in core operations of real estate, Parsvnath Developers is striving to bradbase its product offerings by catering to emerging markets and segments
Parsvnath SEZ Ltd. plans to develop 17 SEZ, having a total saleable area of 367 million sq ft, in various segments like pharma, gems and jewellery, IT/ITES, biotech, handicrafts, leather, food processing and automotive sectors apart from multi-product SEZs. Out of the planned SEZs, four have already been notified by the Centre at Indore, Gurgaon, Dehra Dun and Nanded. Parsvnath Developers has appointed R J Kamath, D N Davar and B K Goswami as independent directors of Parsvnath SEZ Ltd.
D N Davar is a Certified Associate of the Indian Institute of Bankers and a fellow of the Economic Development Institute of the World Bank. He was also the former Chairman of IFCI Ltd, the company said in a statement.
B K Goswami, prior to joining Parsvnath has worked at apex levels with the Centre, state governments and several other government undertakings, it added.
R J Kamath, is former Chairman of the Andhra Bank and Canara Bank.
Parsvnath SEZ Ltd. plans to develop 17 SEZ, having a total saleable area of 367 million sq ft, in various segments like pharma, gems and jewellery, IT/ITES, biotech, handicrafts, leather, food processing and automotive sectors apart from multi-product SEZs. Out of the planned SEZs, four have already been notified by the Centre at Indore, Gurgaon, Dehra Dun and Nanded. Parsvnath Developers has appointed R J Kamath, D N Davar and B K Goswami as independent directors of Parsvnath SEZ Ltd.
D N Davar is a Certified Associate of the Indian Institute of Bankers and a fellow of the Economic Development Institute of the World Bank. He was also the former Chairman of IFCI Ltd, the company said in a statement.
B K Goswami, prior to joining Parsvnath has worked at apex levels with the Centre, state governments and several other government undertakings, it added.
R J Kamath, is former Chairman of the Andhra Bank and Canara Bank.
The Seven Golden Rules of Cult Branding
Harley Davidson, Volkswagen Beetle, Star Trek, Apple Computers evokes passion in their customers and command loyalty. They are called a cult brand. The cult brand stood the test of time, which includes adverse market conditions, merely through the support of loyal customers.
Matthew W. Ragas and Bolivar J. Bueno in his book, The Power of Cult Branding goes into depth to distinguish between harmful and benign cults. The authors outlines The Seven Golden Rules of Cult Branding which postulates the basic rules that cult brands consciously follow to build and sustain their status in the minds of their followers:
Rule 1. The Rule of Social Groups: Cult brands give people the opportunity to become part of social groups – groups of like-minded people who prefer being different Just like HOG.
Rule 2. The Rule of Courage: Creators of cult brands tend to be fighters and winners. It helps brand knock people’s general attitude and liking to be associated with winners. The owners of the cult brand portray an attitude of brazen courage and adventure.
Rule 3. The Rule of Fun: nothing can match the taste of freedom and independence. Cult brands offer their customers an opportunity to pursue and satisfy their innate passions, thus taking their minds away from the serious responsibilities of life.
Rule 4. The Rule of Human Needs: Cult brand focus on the needs of their existing customers and give regard to their feedback, rather than expending energy to win new customers. Cult brand work on enriching the customer experience and treat the customers as King. The cult brand offers every person wants to be heard and feels happy when their opinion is valued.
Rule 5. The Rule of Contribution: Cult brands believe in giving back to their customers the profits they generate to develop and support customer communities, thus forging lifetime relations with them.
Rule 6. The Rule of Openness: Cult brands are open to one and all i.e., they are indifferent to caste, creed, socio-economic backgrounds of customers, etc. they do not discriminate among customers. They fulfill the human desire of caring, sharing, bearing and belonging.
Rule 7. The Rule of Freedom: Cult brands promote the underlying themes of freedom and non-conformity with memorable sensory experiences.
Through meticulous research and scores of interviews Matthew W. Ragas and Bolivar J. Bueno have uncovered the remarkable and untold stories behind nine very successful cult brands. The nine brands are Star Trek, Harley-Davidson, Oprah Winfrey, World Wrestling Entertainment, Apple, Volkswagen Beetle, Jimmy Buffett, Vans Shoes, and Linux.
Matthew W. Ragas and Bolivar J. Bueno in his book, The Power of Cult Branding goes into depth to distinguish between harmful and benign cults. The authors outlines The Seven Golden Rules of Cult Branding which postulates the basic rules that cult brands consciously follow to build and sustain their status in the minds of their followers:
Rule 1. The Rule of Social Groups: Cult brands give people the opportunity to become part of social groups – groups of like-minded people who prefer being different Just like HOG.
Rule 2. The Rule of Courage: Creators of cult brands tend to be fighters and winners. It helps brand knock people’s general attitude and liking to be associated with winners. The owners of the cult brand portray an attitude of brazen courage and adventure.
Rule 3. The Rule of Fun: nothing can match the taste of freedom and independence. Cult brands offer their customers an opportunity to pursue and satisfy their innate passions, thus taking their minds away from the serious responsibilities of life.
Rule 4. The Rule of Human Needs: Cult brand focus on the needs of their existing customers and give regard to their feedback, rather than expending energy to win new customers. Cult brand work on enriching the customer experience and treat the customers as King. The cult brand offers every person wants to be heard and feels happy when their opinion is valued.
Rule 5. The Rule of Contribution: Cult brands believe in giving back to their customers the profits they generate to develop and support customer communities, thus forging lifetime relations with them.
Rule 6. The Rule of Openness: Cult brands are open to one and all i.e., they are indifferent to caste, creed, socio-economic backgrounds of customers, etc. they do not discriminate among customers. They fulfill the human desire of caring, sharing, bearing and belonging.
Rule 7. The Rule of Freedom: Cult brands promote the underlying themes of freedom and non-conformity with memorable sensory experiences.
Through meticulous research and scores of interviews Matthew W. Ragas and Bolivar J. Bueno have uncovered the remarkable and untold stories behind nine very successful cult brands. The nine brands are Star Trek, Harley-Davidson, Oprah Winfrey, World Wrestling Entertainment, Apple, Volkswagen Beetle, Jimmy Buffett, Vans Shoes, and Linux.
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