Thursday, March 27, 2008

Red, white & blue hoopla!

American dollars get a patriotic boost
United States seems to be going gaga over red, white and blue these days as it happens to be the latest shopping trend among Americans. Come July 4, there could be no better occasion than the US Independence Day to demonstrate patriotism. Americans will once again do what they do best; show off their consumerism! Even the retailers are banking heavily on the day which always turns out to be very lucrative. According to a National Retail Federation (NRF) survey, around 34.5 million US consumers will buy patriotic- theme based merchandise leading up to July 4, definitely a great opportunity for marketers to savour. “Retailers will make sure stores are packed with patriotic-themed products as the Americans celebrate the day,” says NRF President and CEO Tracy Mullin. Even online sales and marketing firms seems pushing the theme hard to ensure that they are not left out. Surprisingly even retailers who have not made special efforts for the day have made some efforts for the patriotic enthusiasts. “We do offer some patriotic products but we are not engaged in promotions activities particularly around July 4,” revealed a Hallmark spokesperson to 4Ps B&M. Studying the current market trends, it is evident that along with this day, various other significant occasions have brought about massive consumer spending. Analysts believe that this patriotism has its roots attached to American tragedies like the 9/11 attacks. America has always been a market where flag waving earns dollars.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, March 25, 2008

Why new kids on the block

Don’t blame Ratan Tata and Kumar Mangalam Birla alone for failing to capitalize on emerging opportunities in various sectors. It was a then upstart entrepreneur called Sunil Mittal who gambled and won big time in telecom through Bharti and Airtel. Before,another virtually unknown person called Subhash Chandra who gate crashed into the media and entertainment market through the ZEE network. Even in the rapidly growing retail sector, it is Kishore Biyani of the Future group that has won the early skirmishes against more established business houses. In Information Technology, the Tata group (TCS) is the only old business house to have a strong presence. The other leaders were new kids on the block till about a generation ago. In aviation, it is another entity called Naresh Goyal whose Jet Airways humbled old business families. And, the irony is, when the Delhi and Mumbai airports were privatised last year, a now established entrepreneur called Sunil Mittal along with Anil Ambani was pipped to the post by the GVK and GMR groups. Clearly, there is something about being a new kid on the block that makes them tick!

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Monday, March 17, 2008

Unveiled – HLL’s new Unilever ‘connection’

Hindustan Lever will now be known as Hindustan Unilever Ltd. – and for this it has received government’s approval. A new company logo – along with a new corporate identity – is going to be defined, that will be the symbol of company’s credo of ‘Adding Vitality to Life’. In the beginning of the year, it was stated that the name change would go a long way in maintaining the synergies of global alignment. Here’s a bit of history for those of you who didn’t have a fix on this ‘what’s in a name’ business. Unilever is an Anglo-Dutch FMCG giant. In India, the company owns a majority stake in Hindustan Lever. The first Indian subsidiary of Unilever was set in 1931 – Hindustan Vanaspati Manufacturing Company. Then, it was Lever Brothers India Ltd, set up a couple of years later, in 1933. And then, two years down the line, United Traders Ltd. was set up in 1935. In 1956, all three came under the Hindustan Lever Limited umbrella.

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Wednesday, March 12, 2008

Indian Tennis

Nicolas Kiefer moved one step ahead by donation $100 for every ace served & is in the process of organising an exhibition match with top Thai players for raising funds for effected Thai people. Maria Sharapova already made a personal donation of £5,200 to Thailand. Back home, Sania Mirza & Mahesh Bhupati are voluntarily helping Polio & AIDS campaigns. Tennis ace John McEnroe, Martina Navratilova & Jim Courier have not only pledged but also are actively supporting the water campaign as Clean Water Ambassadors. Compared to the monumental contribution off the court, the huge money they earn & victories they achieve seem (with all due respect!) almost immaterial. It’s inevitable that sports endeavours have the prospect to produce huge social & economical footprints in terms of development of mankind & society, much like the way IT has been able to bridge the digital divide between the developed & the undeveloped countries, the rich & the poor & the Whites & the Blacks.

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Monday, March 10, 2008

It’s Disney time for Lenovo

The trend of targeting kids has become one of the favourites for marketers. Joining the fray is Lenovo, as it launches, Lenovo 3000 H. This is a limited edition, where the desktop is themed on ‘Power Rangers Mystic Force’. The superheroes would be featured in the background of a colourful red skin. 3M’s technology, 2 Control tac has designed the graphics. Microsoft Vista Home Basic edition would be pre-loaded in the desktop. With a starting range of Rs.40,100, this Disney desktop would be launched in different phases. The first phase is slated for Mumbai, Lucknow, Kolkata, Bengalooru, Chandigarh & Delhi.

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Source : IIPM Editorial, 2007
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Saturday, March 08, 2008

Chocolaty times ahead for Nestlé

Nestlé India, a unit of Nestlé Sa – the world’s largest food and beverage company, has recorded profits of Rs.956 million, an increase of 19%, in its second Quarter earnings. With continued focus on nutrition, health & well being, the mantra for the change of fortunes of Nestlé, the company recently entered the probiotic milk market with Nestlé Nesvita Dahi. The launch will help Nestlé, the maker of Maggi noodles and Nescafé, cash in on the growing health awareness in India and from the fact that 50% of the company’s sales are generated from the dairy segment. The probiotic product market stands at $14 billion globally, and with the Indian consumer increasingly becoming health conscious, Nestlé wants to lap up the first mover’s advantage, as Yakult Danone India & Mother Dairy have also announced plans to enter this segment.

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Thursday, March 06, 2008

Definitely, on cloud nine...

Considering that the footfalls at Indian airports escalated by an unbelievable 42% during the last fiscal, airports modernization and development becomes just as important. Well, that’s the truth as far as infrastructure giants like GMR & DLF would want to believe. With both players eyeing the upcoming Greater Noida Airport development project, there is no doubt that international airport authorities like Fraport, South Africa Airports Authority, Chicago Airports et al will too be all ears about the development in the aviation sector of the world’s second fastest growing economy! The fact that the project falls within 150 km of New Delhi IGI Airport would also automatically grant an upper hand to the GMR Group due to rights which it has to due to the ‘vicinity’ factor. With a grand estimated cost to government coffers of a colossal Rs.35.1 billion, there is no questioning the fact that GMR will be keeping its fingers crossed, hoping to repeat its feat of having thrashed Fraport and several other competitors to win the airport development rights for Sabiha Gokcen International Airport (SGA, Istanbul) in July 2007. As far as Indian aviation is concerned, with improvements in the aviation sector health (largely through the consolidation pill) coupled up with many domestic players understanding the danger of being hooked to heavy and illogical investments in aircraft purchases, lot of good thing seems to be happening to the sector.

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Monday, March 03, 2008

Iran is “meddling” in Iraq

And the Bush administration, without irony, charges that Iran is “meddling” in Iraq, otherwise presumably free from foreign interference. The ensuing debate is partly technical. Do the serial numbers on the Improvised Explosive Devices really trace back to Iran? If so, does the leadership of Iran know about the IEDs, or only the Iranian Revolutionary Guards? Settling the debate, the White House plans to brand the Revolutionary Guards as a “specially designated global terrorist” force, an unprecedented action against a national military branch, authorizing Washington to undertake a wide range of punitive actions. The saber-rattling rhetoric about “containing Iran” has escalated to the point where both political parties and practically the whole US press corps accept it as legitimate and, in fact, honorable, that “all options are on the table,” to quote the leading presidential candidates – possibly even nuclear weapons. “All options on the table” means that Washington is in fact threatening war.

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