Ford India gets a makeover

Ford motor company is getting a makeover in India. The company is planning to launch its world famous brands like the Ferrari etal in India. Now this seems to be a sound strategy for a company whose market share has shrunk by 0.2% in the year 2007.

For me the company is following a similar strategy what Yamaha did for it motor bikes in India. Yamaha is known world over for its Racing bikes. It has launched bikes which have captured the imaginations of millions of bike lovers all across the world. But in India it was content in launching products which were suited for the 'Indian conditions'. But in doing this the company launched the products it was not good at, I mean the products were not the core competency of Yamaha, in India they were launching 100 cc bikes wheres as they have their competencies in Racing bikes. so here in India they just launched products which were suited for the Indian conditions , the products were based on obsolete technology as far as Yamaha was concerned, but these products were not exciting for the youngsters.

Now coming back to Ford , it was also following a similar strategy, it was launching products in India which had reached the 'maturity stage' in the other developed market. It is to be noted that the marketers adopt these strategies to extend the product life cycle of the brands which are reaching the 'decline stage' in their life cycle.

but Indian customers have changed a lot over the period of time, they are well read, well connected and are aware of the latest technologies from all across the globe. They want to use the latest technologies , use fancier gadgets and use the best products which people across the world use. Their wants are also backed by their purchasing power, so to expect that the Indians would be happy using second rung products or service would be stupidity.

Now is Ford doing a right thing? well to answer this i have already mentioned about the changing Indians , their higher disposable incomes and above all the availability of a market segment for the luxury cars. So for me it sounds a good strategy , but would it affect the sales of other car brands of the same stable , well i think it should but yet they need to innovate and launch the products with the features which are latest in the world and not Indianised as they call

Singh Is King

Indian prime minister Mr. Manmohan Singh managed to prove majority in the parliament and thus managed to save his government. although the voting in the parliament was marked by constant ruckus and pandemonium created by the opposition parties. there were also allegations that M.P ( Members of Parliament ) were offered huge bribes to switch sides and to cross vote or remain absent from the scene. Some of the members actually brought the money and showed it in the parliament.

Honestly speaking I am not bothered by all these. The only positive which I see is that India can now go ahead with the Nuclear deal. This will ensure that the country can get nuclear fuel from the NSG.( Nuclear fuel supplier Group). This would ensure that the country becomes self sustainable in the matters of energy production.

Killing of Brand Logan

The car Logan, is a a joint venture production between mahindra and mahindra and Renault car company. The car was initially pitched as a wide bodied car for marketing purposes. The company recently changed its campaign and started pitching it as "why can't your your first car be a big car" and they also brought in Kunal Kapoor as its brand ambassador.

This is to the background to what i have to say, now coming to the main part of the story, I recently went to Bangalore and was disusing with my friend about the various brands of car. I told him that i was contemplating buying a car in the next 6 months or so , during the discussion when i mentioned the car Logan , his reaction was "its a taxi" , why do want to buy it .

I was not able to understand his reaction initially. later i found out that, after the new international airport came into operation many taxi operators have started their operations in the town, and most of them have bought Logan and have been operating them to ferry passengers to and fro from the airport.

This reminds me of my own reaction towards Indica car by TATA motors , nearly all the cabs in Bangalore are Indica and that's the reason why i didn't want to buy Indica. Now the same is being repeated for Logan. the car which was positioned for young executives is now is now the favourite for the cab operators. Its not that the brands like Merc and BMW etc are not used as cabs , but the difference here is that they are not used on such a wide scale the brand Logan is aimed at 'mass marketing' and its not a 'niche product'.

so how will be the company affected ? do they really care ? , well these will be good questions, the marketing and the sales managers would be very happy owing to the increased sales of cars , but what will happen over the long run , would logan become the next 'taxi car' in India ?

Should company do something , as introduce new variants aimed to cater to this section and differentiate on others. Well its only left to the senior executives of the company to take a decision , its only left to them that what do they want their brand to become .

What a Customer Wants ??

Before i start writing about the topic , i would like to tell you that i have been relocated to Chennai , and that's the reason why i was not regular in my postings . Now i am back and all set in Chennai and the story which i am posting here is a result of my today's experience at an eatery.

In Chennai I am finding a hard time to get good food, (please consider the fact that I am from the northern part of India and my taste preferences are different) therefore i have nearly tried all kinds of food offered nearby , but i didn't like any of them. The one reason is primarily taste and the second reason is perhaps the way these Shop owner operate and treat their customer, particularly those people who do not know the native language.

I am not kind of person who believes in regionalism and things like that but down here in this part of India the rationalistic feelings are very strong,( for me it presents a good marketing opportunity , perhaps i will write about it later ) now coming back to my story , today in the afternoon I was led by one of my office colleague to a small eatery located on the third floor of a nearby building. this was a kind of place one can not find if he is not aware of it, the place was very ordinary and had very basic furniture , 2 tables and 4 chairs and a ceiling fan to counter the heat and humidity of Chennai. Now the food , the food was also south Indian food and nothing was great about it either.

Now the question which might arise in your mind , then why did i bother to write so much and that too with the caption , "what customer wants", now the thing which i did not tell you till now was the service which i got from that small eatery .

The lady did not knew Hindi and could not speak or understand English. She was so caring that she made us feel at home and let me tell you that i really enjoyed that food although it was not of my taste.

She also enquired to us about our taste in the symbolic language and also complained that we did not had 'rasam chwal ' a local preparation .

Now coming to the moral of the story , in today's world there is only one thing which can make a customer stick to a product or service, and that is the kind of 'Customer Service' a company , firm or an organization provides to their customers. A good experience always remains in the minds of the customer and this always helps him /her in choosing brands or services. During the information search stage if he recalls this experience then there is a chance that he will buy the same product or service he had a memorable experience. Therefore the marketer's must ensure that at all the points of contacts the customer has a memorable experience and that can be only brought by a good customer service, in my case I am now a regular customer to her shop.

Shah Rukh , Aamir and Abhishek makes it to the Forbes List

Forbes publication, known for its rankings of wealthiest persons across the world, has named Shah Rukh , Aamir and Abhishek are the stars among ten celebrities adding star-power to mobile.
The three stars are the brand ambasasdors of the mobile phones Nokia , Samsung and Motorola respectively . the Celebrities have been joined by two international sport stars Maria Sharapova and David Beckham, four singers Usher, Fergie, Rain and Andy Lau and race car driver Danica Patrick in the 'Ten Celebs and Their Cells' list published on the Forbes website

Miss Universe 2008

Miss Venezuela Danyana Mendoza was named Miss Universe 2008, everyone saw her pic wearing the crown ...i thought to share these images .....

well u can consider it a gimmik to increase traffic to my site ;)

Worlds Oldest Blogger says Goodbye !!

Olive Riley , hailed as the worlds oldest blogger died at the age of 108.
We will miss u Riley on the blogger world.

Its Brands even in Case of Films Too !!

Recently in India two movies were released, both the movies were similar in a sense that in both the movies two youngster made their debut. Harman Baweja made his debut through his film 'Love Story 2050' and Imran Khan through 'Jane Tu Ya Jane Naa'.

Now let me tell you about both the actors and their films , Harman belongs to the reputed 'Baweja family' a family known for its superhits in the Indian film Industry. The theme of the movie was futuristic and Harman with his Hrithik type looks and dance steps tried to woo the audiences.

On the other hand Imran is a cousin of 'Aamir Khan' , one of the top actors in the Indian film faternity. The movie is set on the backdrop of college going youngsters and their life and their experiences.

Now the result Imran movie is a hit, it has surged past the Harman starring Love Story 2050.

This presents an imp branding and marketing concept before us , not only your product should be new but it should boast of a few key features which are unique to your product, in other words its yours brand USP.

Harman's acts and his looks resembled so close to Hrithik roashan that people didn't find any thing new or fresh , whereas Imran's chocolate boy image and Aamir Khan production created a brand which helped the movie to do good business, the viewers went to the cinema hall to watch a new talent and not a look alike.

The same principle applies to brands as well the 'mee too' brands often fail to make a mark in the consumers' mindset because they do not have any thing special to offer. Their offerings and their products are essentially the same as their bigger competitors and thus more often or less they fail . So my advice to Harman , dude create your own style, well you cant do much about your looks though.

The New King ...!!!

Its time to invest in Cold Chain Infrastructure

It is now the high time for the govt of India to start investing in the cold chain solutions. The country is the highest producer of vegetables and second highest producer when it comes to the production of fruits . The food grain production has been also robust over the years. In spite of the huge growth and the huge profits earned there has been great concern in the recent years regarding the efficiency of marketing of fruits and vegetables in India. It is believed that poor linkages in the marketing channels and poor marketing infrastructure are not only leading to high and fluctuating consumer prices but also only to a small proportion of the consumer rupee reaching the farmers . There is also substantial wastage, deterioration in quality, and frequent mismatch between demand and supply spatially and over time.
Recently Over 10 lakh tonnes of food grains worth several hundred crores of rupees, which could have fed over one crore hungry people for a year, were damaged in Food Corporation of India (FCI) godowns during the last one decade. The damages were suffered despite the FCI spending Rs 242 crore while trying to prevent any loss of food grains during storage. Ironically another 2.59 crore was spent just to dispose off the rotten food grains. FCI informed that 10 lakh tonnes of food grain was damaged in the godowns of government owned agency, which is responsible for procurement and distribution of food grains across the country.
The FCI informed that 1.83 lakh tonnes of wheat, 3.95 lakh tonnes of rice, 22 thousand tonnes of paddy and 110 tonnes of maize were damaged between 1997 to 2007.
The FCI said in the northern region -- UP, Uttarakhand, Haryana, Jammu and Kashmir, Punjab, Rajasthan, Himachal Pradesh and Delhi -- the damage incurred was seven lakh tonnes and the PSU spent Rs 87.15 crore to prevent the loss besides spending over Rs 60 lakh to dispose off the damaged foodgrain.
The problem has become more acute today because of rising inflation. The cost of food grains have gone up substantially . Considering this the wastages mentioned above are a matter of national shame, it is high time now that the country should start investing in the Cold Chain solutions.
Today the cold chain facilities in the country are rudimentary , the facilities are either absent , not working or not used because of inadequate information to the farmers . As a result wastages occur and tonnes of food grains which can feed millions of Indians goes to the drains year after year .
The government should look at this matter very seriously because the country can not afford the wastage of food grains at a time when all across the world there has been a shortage of production . Moreover the government’s agencies not only collect commission’s but also earn directly by selling the food grains. Therefore the current situation demands that the government should take active measure to set up an entire supply chain infrastructure of cold chain.

Planning to share a Video .... beware !!!

If you are a person who loves sharing videos through youtube then this news might be for you. Google has been ordered to hand over details of YouTube users' viewing habits by a judge presiding over a copyright infringement case against the site, the case was filed by Viacom the parent company of MTV. The company insists that copyright material was routinely passed over the website, arguing this the company has filed a $1 billion lawsuit.

The company has been ordered divulge details of every video clip uploaded to the site, along with viewers’ YouTube usernames and IP addresses.

So as a regular file sharer you need to be careful that you are not violating the copyright laws.

India regains trillion-dollar stock market status

Indian Stock market jumped back into the coveted trillion-dollar global club as the cumulative worth of all the listed companies in the country rose to 1.01 billion dollars alongside a 703-point surge in the benchmark Sensex.
The total value of all listed companies at the BSE today rose to Rs 43,75,813 crore (about 1,013 billion dollars), up from Rs 41,97,000 crore (966 billion dollar) yesterday.
However, the total value of all the NSE listed companies continues to remain below the trillion-dollar mark, as there are less number of companies listed at this bourse.

For MBA Grads its time to learn a Different Language

According a new report as per the economic times , the MBA graduates of Indian origin can be immensely benefited if they learn Mandarin language. the reason , most of the American executives are having a tough time adjusting to the Chinese culture and they are planning to go back to America. this would create huge opportunities for the executives who know the Chinese language.

During our International Marketing classes we were told about the fact that the cultural shocks are the most disturbing , the lifestyle , food habits and even the behavior pattern all change 360 degrees. these all results in the inability of the persons to adjust to a local environment. this is equally applicable for the products we market in any region , until and unless we bring localisation and include local tastes and/or preferences into that product, that product is bound to fail .

So to sum up all MBA grads like me, need to start looking for a good language school where we can learn Chinese, and then start adopting and adjusting ourselves for the cultural shock we would have, if we are lucky enough to go to the manufacturing hub of the world.

The 10 worst property investments ever

I read the post on times , and felt like sharing it. Read the story here

Indian Army : Do you have it in you

Well that was just for fun , but seriously speaking if nothing changes soon, Indian Army would soon reach to this condition. If you are reading this and you believe that you have it in you then Indian Army is waiting for you.

I would also like to pay my homage to 'Sam Badhur' the war veteran and the best strategist Indian Army has ever seen , his legacy will continue long after he is gone.

Though time for Automobile Industry

The industry which seems to be most affected by the growing inflation and the related economic developments is the automobile industry. According to the industry reports the industry is going to face a downfall in demands and consequently a negative growth for most of the companies.

The rising steel prices had already hit the industry hard and the companies had to increase the prices of most of their models by Rs 20 thousand to 30 thousand. Now in the current scenario the government has increased the cost of petrol substantially and inflation figures have led RBI to increase the REPO and Rev REPO rates, prompting the banks to increase their intrest rates. Therefore their is no rewards for the customers to go for a new purchase of vehicle.

The automobile industry robust growth came in recent years from the growing middle class who had increased 'disposable incomes' and therefore they were investing in four wheelers . Now the fuel costs have increased and the increased intrest rates of banks means higher EMI's , these two factors are new deterrents for the new customers.

The industry has to come up with new and innovative ideas to promote their vehicles in the current situation . Having said this i am reminded of the recent MARUTI Vagon -R ad and also INDICA Zeta ad, these two ad speak of the new 'LPG KIT' which the company has fitted into the cars and these come to the customers at no extra cost. Now this is VALUE for the customers. the customers know that the fuel cost have increased and this is a way to beat it ( by using LPG kit ) and the fact that the company provides this for free is an incentive for the customers.

In another ad a small girl is ready to sacrifice her ice cream for the fuel of the car, but eventually she realizes that her parents are a Maruti user and therefore she need not sacrifice. This Ad tries to convey that if you are a maruti user you need not worry about the rising fuel costs.

Overall in my opinion the industry is surely going through a though time , the industry has to come out with products , offers and promotion schemes that has the ability to affect the mindset of the customers in such a way that they become ready to buy the products in spite of all odds.

"People will forget whatyou said, they will even forget what you did, but they will never forget what you made them feel." Maya Angelou

India Fastest Growing

India Fastest Growing Large Companies
1) HCL Infosystem
2) IVRCL Infrastructures & Projects
3) Shriram Transport and Finance
4) Idea Cellular
5) Simplex Infrastructures
6) India Cements
7) Pantaloon Retail
8) Larsen& Toubro
9) Infrastructure Devlopment Finance Co.
10) Jindal Steel and Power

India Fastest Growing Mid Size Companies
1) Electrotherm (india)
2) BL Kashyap & Sons
3) Glenmark Pharmaceuticals
4) Mphasis
5) K.S Oils

India Fastest Growing Small Companies
1) Sun TV Networks
2) Indiabulls Financial Services
3) Shri Lakshmi Cotsyn
4) Bombay Rayon Fashion
5) Cholamandalam DBS Finance


Reff: Business Today , www.businesstoday.in

Biggest Oill spill , Heaviest punitive damages and now biggest reprieve

The incident which i am reffering to is the The Exxon Valdez oil spill, the oill spill which has been considered as the worst in history in terms of the amount of crude oil released into the ocean.

On March 24, 1989, the tanker Exxon Valdez, en route from Valdez, Alaska to Los Angeles, California, ran aground on Bligh Reef in Prince William Sound, Alaska. The vessel was traveling outside normal shipping lanes in an attempt to avoid ice. Within six hours of the grounding, the Exxon Valdez spilled approximately 10.9 million gallons of its 53 million gallon cargo of Prudhoe Bay Crude. Eight of the eleven tanks on board were damaged. The oil would eventually impact over 1,100 miles of non-continuous coastline in Alaska, making the Exxon Valdez the largest oil spill to date.

The bulk of the oil spilled from the Exxon Valdez was released within 6 hours of the ship's grounding. The general trend of the oil was south and west from the point of origin. For the first few days after the spill, most of the oil was in a large concentrated patch near Bligh Island. On March 26, a storm, which generated winds of over 70 mph in Prince William Sound, weathered much of the oil, changing it into mousse and tarballs, and distributed it over a large area. By March 30, the oil extended 90 miles from the spill site. Ultimately, oil would extend more than 500 miles from Bligh reef, oiling shorelines in Prince William Sound, the Kenai peninsula, the Alaskan peninsula and Kodiak island. Oil impacts in the Prince William Sound region were the most severe.

The worlds worst oil accident was followed up by rescue and remediations programs which lasted till 1992-94. This matter was taken to the court by the active environmentalist and the fishermen of that area.

A federal jury in Alaska awarded $5 billion in punitive damages in 1994. A federal judge later reduced the punitive damages to $4.5 billion, and the appeals court further cut it to $2.5 billion

Exxon Mobil, the largest U.S. company by market capitalization, then appealed to the Supreme Court, arguing it already had paid more than $3.5 billion for the spill. The court on Wednesday threw out the record $2.5 billion in punitive damages By a 5-3 vote, the high court ruled that the punitive damages award should be slashed -- limited by the circumstances of the case to an amount equal to the total relevant compensatory damages of $507.5 million. This has came as a big relief to the company.

In the current situation the general US public believes that the company is making windfall profits on the surging price of crude oil i.e the reputation of the company is not good , now if we combine the current ruling which has bailed the company out of punitive compensation then the overall reputation of the company in the minds of the coustomer doesnt seem good. Will this have effect , yes definately, today the customers are becoming more conscious of their environment. If they together decide to buycott a company they can, therefore EXXON today seriously needs to indulge in some P.R activities pertaining to environment, it's not like that the company is not committed for the environmental cause but the company needs to be more vociferous in the current situation.

For Advertisers timing does matter

While watching the Asia Cup Match between India and Hong Kong today I noticed a interesting thing, during some part of the game when India was batting ( may be around 22-37 overs ) there were only a few ads. And the ads which were shown were mainly of the channel , i.e of Star Sports programs. During this short span of time there were some ads shown , I recall these were of Polo mint , Havells and Fashion Bazaar and that’s it .
Now why this is important, well I was reminded of an important Advertisement lesson , that not only the advertisement should be creative enough , but it should be placed in such a manner that it should get maximum exposure and impact the audiences in a manner that help in ‘brand recall’.
Now considering the present example I don’t think that the product would have got maximum ‘reach’, but as far as the recall is considered the timings couldn’t have been better. There were minimal ads and thus no clutter , I was even surprised at times that during the over break there were no advertisement breaks. Therefore the advertisements were able to get maximum attention and top ad recall,( at least in my case they did ) and they served the purpose for which they were aired.