Wednesday, August 27, 2008

Lowa says, black is beautiful too!

Obama’s Iowa victory goes to prove that Hillary just won’t be able to win the race so easily.
The caucus-goers in Iowa made their way to the ballot forewarning key pitfalls for Hillary Clinton & Mitt Romney and bouquets for their respective rivals, Barack Obama & Mike Huckabee. Obama’s triumph came after the costliest & most intensely fought campaign ever in the history of the Iowa. The year-long rivalry shaped a huge turnout that reflected the vigour and eagerness among Democratic voters strong-minded to recapture the White House in November. Whereas, in the GOP race, Huckabee, an Evangelical Neocon, used his folksy style to stitch together a loose alliance of Evangelical Christians & conservatives to beat Mitt Romney. Reacting on his victory, noted political analyst Vaughn Ververs told B&E, “Huckabee took advantage of a Republican party dispirited by an unpopular President & unexcited by their choices for a presidential standard-bearer.” Obama sailed to victory accompanied by a spectacular attendance of first-time caucus-goers, bagging roughly 38% of the vote in a race that drew 240,000 Democrats – about twice the GOP turnout.

Obama’s triumph was the newest chapter in his incredible political saga. In the quest of becoming the first African American president, he found receptive listeners countrywide, & proved his grit in this principally white and pastoral state. Reacting on the result, political analyst David Yepsen said to B&E, “I deem Clinton had failed to get a convincing message out to the voters, despite a huge operational presence in the state. From here, the anti-Hillary Clinton vote will now coalesce around Barack Obama. That’s part of the story tonight.” The result in Iowa sets the arena for what will be a high-stakes fight in New Hampshire, with Clinton now fighting for endurance in a state where her once-robust lead has mostly vaporised in the past two months and Obama has been growing. The largest single day of caucuses voting will come on Feb 5, when several of US’ largest states will hold primaries.

The result has also set alarm bells ringing for Republicans. Blake Rutherford, political analyst and Director of Public Affairs in Iowa told B&E: “In my view, Iowa told us a lot about the Democratic Party. Primarily, attendance was huge, which exemplifies that in a state that Bush carried in 2004, sway voters are breaking with Democrats on every matter, and in overpowering numbers. If that’s symptomatic of what’s happening in other parts, 2008 could be a bad year for Republicans across the board.”

With enormous campaign finance and great ambitions following the two frontrunners, the Clinton-Obama war is far from over, long drawn out, and fierce propaganda battles are on the cards in the coming weeks.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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IIPM makes business education truly global-Education-The Times of ...
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Tuesday, August 26, 2008

Giving SOS

Organ market goes haywire…
While it indeed is a matter of dilemma whether trade of human organs is at all ethical or not… the need of the hour is to establish an organised organ market.

The financially crippled, quote any price according to their discretion and sell their lungs to less deserving yet wealthy patients just for the lure of money… whereas the more needy patients keep waiting till it becomes too late. A scintillating example of the same is the black market in Tehran where kidney is tagged at a staggering price of $2,500-$3,750, when the same is available in the Institute for Kidney Patients, Delhi at almost half the price… and as if that’s not enough such corrupted commercialisation of organs is not even attempted to be kept a clandestine affair.

Developing countries like India, Turkey, China, Russia and Iraq indulge in black marketing of organs to cater to the needs of patients from more developed nations and examples are umpteen where donors are either being cheated or are beleaguered from health deterioration after selling their organs. Then, the solution isn’t in formation of a legal organ market. It will be repetition of the rich buying the poor’s. This time, not as a slave but to use his organs at the expense of his life.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Monday, August 25, 2008

An investor. A tycoon. And a Royal Prince!

Call him the world’s 13th richest man, call him a father of two, call him an investor or simply call him a prince, but he knows his game

He belongs to the Saudi Royal Family, but building huge royal desert castles was not his dream. His desires shot beyond just leading a ‘royal’ rich life & moved beyond international boundaries – towards US & Europe as an enterpreneur & investor. Today, he has amassed a $10 billion stake in Citigroup alone (apart from other investments) and has demonstrated clear interests in American politics over the years too and his rendezvous with former US Presidents Jimmy Carter and Bill Clinton standing alibi to the same. Call him Prince Al-Walid bin Talal bin Abdul Aziz Al Saud, or just Prince Al-Walid – an investor worth $20.3 billion (the 13th richest person for 2007, as per Forbes).

He’s known across continents for reasons bigger than being the only private buyer of the super-jumbo Airbus A380 or for the $20 million gifts he made to Harvard and Georgetown to expand their Islamic studies departments. He’s a man whose passion for capitalism moves far beyond just his $3.9 billion deal to buy Fairmont Hotel & Resorts, far beyond plain luxury! Want a proof? Well, he demonstrated his knowledge of what the stock markets are capable of when in February 2007, he listed his hotel holdings on the Dubai stock exchange. He further aims to get his primary investment group, Kingdom Holdings, listed on the Saudi exchange by end-2007. And what about his investments of $7.5 bn on December 4, 2007 which further increased his control in Citigroup to a commanding 4.9%, making him the largest controller of the $170.1 billion entity? A capitalst indeed!

Born on March 7, 1955, Prince Al-Walid has been divorced twice and is currently married to Princess Ameera and blessed with two children – Prince Khaled and Princess Reem. He completed his Bachelor’s degree in Business Administration from Menlo College in 1979 and further completed a Masters in Social Science from Maxwell School of Syracuse University in 1985. The year 1979 saw the birth of his business career, a man who chose not to become a part of the Saudi political scene. His investment career wasn’t all that rosy to begin with though. His professional career didn’t take a kickstart initially, as real estate deals signed by him during the 1980s remained undervalued for some time. In the 1990s, when Citicorp was facing complexities his investor activities gained momentum. And there was born the real businessman .


Today, this man is no less a media tycoon too – what with huge investments in AOL, Apple, Motorola, News Corp et al. He also produced the first Saudi Arabian movie ever, titled Keif al-Hal, provoking questions about Saudi life. Talking about his venture, the Prince says, “I am correcting a big mistake, that is all. I want to tell the Arab youth that you too deserve to be entertained, you have the right to watch movies, you have the right to listen to music.” Hotels, we would say, is his other area of interest, with his real estate holdings comprising huge stakes in the Four Seasons hotel chain and the Plaza Hotel in New York, Monte Carlo Grand & many more...

Like every successful business man, he has his own way of unwinding at the end of the day. “Sometimes, I stay alone, sit alone there for one or two or three hours. I really feel serenity, at home, alone, in the middle of the desert, no lights, only the light of the fire. I feel very much comfortable in the desert.” says Al-Walid. Unlike any blue-blooded prince, he accepts modestly his passion for not so expensive things and still holds dear his second hand Jet bought from the Sultan of Brunei. This Prince might not possess the same technological expertise as the Gates or the Dells or a shrewd investment sense (his poor decisions wiped out his entire stake in internet giants many years back), but his proficiency for striking good investment deals just shields them all.

With his incredible wealth and royalty, guess its time to believe, ‘In the world of business, everyone’s the same, a king or a common man if he knows the game!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
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Wednesday, August 20, 2008

With oil bonds, its not that hard to imagine!

These bonds will dent government finances when they mature...
India, which imports nearly 70% of its crude oil requirement, is faced with a not so unheard problem; the PSU oil marketing firms are losing about Rs.2 billion per day on retail sales. Reason being, the government has not allowed them to raise prices in line with the increase in international crude oil prices.

The government had in place a three pronged package – affect a price hike in petroleum products, meet its burden by current provisioning and modify the existing subsidy scheme to target the poor. Yet, despite the fact that the mismatches between domestic prices and global oil prices can’t be tackled with the issuance of oil bonds, the government will issue bonds worth Rs.300 billion to compensate PSU oil firms for their losses. Exactly 21 months ago, in February 2006; the Committee on Pricing & Taxation of Petroleum Products headed by Dr. C. Rangarajan said that the issuance of oil bonds raises some fiscal concerns. “The off-balance sheet exposure of Indian government is more than 1% of its GDP and issuances of oil bonds are one of the biggest worry. Oil bonds will dent government finances badly, when they mature,” says Sachidanand Shukla, Economist, Enam. With the overall subsidy burden estimated to exceed Rs.1 trillion, issuing bonds to meet short term objective is certainly not the way out and aligning them to international prices is the only solution.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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IIPM makes business education truly global-Education-The Times of ...
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India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
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Wednesday, August 13, 2008

Browse & organize

Tactile 3D is a user interface made to browse & organize all your existing files on your hard drive in 3D using shapes and sounds to identify folders and files. Get a free trial at www.tactile3d.com. Wouldn’t it be great if you could search your data while ‘walking’ INSIDE your hard drive? Remember those hacker movies where the protagonist virtually enters a computer program to physically look for the virus. The first thing that comes to mind when I think of this is the character Tom Sanders (Michael Douglas) ‘walking’ on Digicom’s VR Database in Michael Crichton’s movie Disclosure. A Force More Powerful (www.afmpgame.org) is the first and only 3D game to teach the waging of conflict using nonviolent methods. Destined for use by activists and leaders of non-violent resistance and opposition movements, the game will also educate the media and general public on the potential of nonviolent action and serve as a simulation tool for academic studies of nonviolent resistance. Think of a world without actual wars, we can just fight them virtually and spare millions of lives.

VRMAG (http://vrm.vrway.com) is an online magazine with an incredible 3D interface. It actually allows you to read the magazine as an object in space. This means that with some more advanced programming, you would not need to go to America to be inside the American Library of Congress. If all books are digitized and added to an interface like this, the library is available at the touch of a button. Several organizations including Google and Project Gutenberg are already digitizing books.

NASA World Wind (http://worldwind.arc.nasa.gov) is an intergalactic Google Earth with the moon, Mars, Venus & Jupiter as well. After we have sufficient imagery data in the future, we could travel to these distant planets sitting in our living rooms. And speaking of Google Earth, the net is ripe with rumours about a new Google product called My World that adds human movement and interaction to the already realistic world of Google Earth. Using its graphics development application SketchUp (http://sketchup.google.com) Google may be on its way to creating a 3D universe of its own. Although there is still no official statement, the obvious possibility is a competitor to Second Life. Some folks are even talking about Google buying out Second Life, but then if Google had its way, it would buy out every innovative piece of software on the planet, and in the virtual world of course.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Monday, August 11, 2008

BRANDING R. I .P. {Uhh...’Rust’ in Peace}

monojit lahiri endeavours to unravel a new-age, revolutionary, path-breaking philosophy that puts the age-old and much-revered concept of BRANDING to sleep… forever!

“The days of branding being the prime discipline to communicate the consistency of a given product and the reliability of its promise, are clearly over...”

Branding, for decades, has been hymned, celebrated, exalted, venerated and worshipped as the gospel truth by any marketeer worth his FMCG lapels! The ‘High Priests’ have pronounced that the brand is god and the ad executives, GCROE(S) – Gods Chosen Representatives On Earth! For decades, it has been acknowledged as the single most important aspect of business. Its success equals the business (it drives) success. Branding’s prime objective remains the same – to make a product or business look distinct and different from competition and epitomise the vision and values it represents to gain that decisive cutting-edge lead…

Chris Jaques, the iconic founder of Spark Innovation Consulting – which specialises in developing innovation strategies to ignite specific business areas – pooh-poohs this entire empirical evidence and supports his logic with a clinically chronicled five-point rationale. He believes that the days of branding being the prime discipline to communicate the consistency of a given product and the reliability of its promise, are clearly over. There’s been a paradigm shift in the ‘market-product-consumer’ connect with the money going into the services not products, slot. He supports it with hard facts. “Wal-Marts’ revenues are three times bigger than the entire revenue of both Proctor & Gamble & Unilever combined! Citibank & ING, too, are twice their size. This is the age of service not product and service marketing requires a totally different set of rules. Services are customised, not mass-produced.” Expanding this line of thinking Jaques argues that most of today’s real killer brands “are built on concepts, not products.” He goes on to explain how Apple produced the iPod with iTunes. “First they commissioned an idea and a design from Ideo. Next, they bought chips from Motorola and put them in a casing from Foxconn. Then they hired developers to create music software. At another level, agents were going tongs n’ hammer negotiating access to content, which incidentally was created by publishers and artistes. Apple only packaged it all together, managed it and sold it. It produced nothing!”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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IIPM makes business education truly global-Education-The Times of ...
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India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs


Friday, August 08, 2008

Madhya Pradesh


IIPM Ranked No. 1 B-School In Global Exposre - Zee...

You were perhaps taught this in school – geographically, which state lies in centre of India? Madhya Pradesh? Let’s make it easier – which is the largest state in terms of area? Madhya Pradesh, right?! Wrong!!! It’s been pushed to the ‘second’ position post the Chattisgarh split (and for your information, it’s been eight years since then!). Not that size really matters when it comes to gaining attention, but this state is also ranked ‘second’ as per the 4Ps B&M and ICMR Best Marketed State Survey 2008 (that is pure coincidence, trust us!). And thus lies MP, as the heart of the country (No wonder its state tourism punch-line is, “India ka dil dekho”).

So there you are – 308,144 km sq. of beauty and grandeur. Nonetheless, this sizeable land mass is not a favourite haunt for the mindful because of just the Ajantas and the Elloras. It’s not just about the mind-boggling landscapes or the serene waterbodies. It’s also got a lot to do with capitalism! Situated in a strategic landlocked location, MP has 5 states enclosing its boundary – the highest in the country. So, does this mean some luck with investments? Let’s take a sneek-peek into the list of companies who find investment a wonderful proposition in MP. While Mysore Cements has a plant at Damoh, BK Birla Group’s flagship company – Century Textiles & Industries Ltd. has a cement plant at Satna. Near Indore, it also has cotton yarns and denim production plants which are mainly used for export purposes. A Century Textiles official justifies the rationale behind the investment as, “The one factor that prompted us to come here was the very-friendly labour atmosphere existent in this state. Moreover, the kind of labour force available at the existent price levels is amazing!” Another prominent cement brand that has established a solid presence in MP is Grasim Industries Ltd. The AV Birla Group company, has a cement plant located in Jawad and a highly-profitable viscose staple fibre plant (VSF) in Nagda district.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

For More IIPM Info, Visit below mentioned IIPM articles.
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!


Wednesday, August 06, 2008

Refunds! What’s that?

SEBI says, forget refunds! Pay only after you are allotted

Life will become a little more simple now for retail investors. Capital market regulator, Securities and Exchange Board of India (SEBI), has given an in-principle nod to a substitute form of payment for public and rights issues, which will facilitate applicants to maintain money in banks till actual allotment of shares. The move is expected to abolish hassles related to refunds. As per norms the bank will mark a lien on the customer’s account to guarantee that the required sum is safe until the allotment process is finalised. In case the allotment does not take place, the money gets mechanically unlocked and is at the investor’s disposal. This simply means that investor’s money marked for the IPO cannot be used for any other purpose.

Undoubtedly, SEBI’s move aims at preventing reoccurance of the situation when many investors failed to invest in attractive IPOs for the fact that they could not get back their money, locked with the mega IPO of Reliance Power, in time.

Further, SEBI has decided that “portfolio managers should not float a scheme or pool the resources of clients in a way which is akin to mutual fund activity.” Which means portfolio managers now will have to operate individually. And to make sure that such managers have sufficient resources before they deal with investors money.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, August 05, 2008

The Shopper’s Stop mall

Somewhat similar is observed in retail with the most prominent example being that of Shopper’s Stop. The Shopper’s Stop mall in Delhi’s 4psRajouri Garden area very proudly displays (and sells!) the in-house brands of its rivals, which include Pantaloon, Provogue, et al. Well, B. S. Nagesh, MD, Shopper’s Stop has no qualms about it. “We believe in offering more brands to our consumers and our strategy is to have a wider portfolio,” he tells 4Ps B&M. However, the point here is not only to cater to the needs of the consumers but in the bargain, it also increases its revenues. Even Tim Enyon, CEO, Provogue argues, “I don’t see any harm in it. Basically Shopper’s Stop wants to maximise its sales per square meter.”

But then it would be wrong to say that the sole aim of co-opetition is only ‘profits’. “There have been instances when companies have unified to protect the interest of the industry as a whole,” agrees Shekhar of Springboard Research. When the pesticides controversy hit the market, Coke and Pepsi fought the allegations hand-in-hand. Moreover, there have been cases when companies have jointly turned the market forces in their favour, a case in point being when all operators raised outgoing rates of local as well as STD calls on the same day in August 2007 (what a coincidence!), without prior notice to the customer.

Internationally too, the phenomenon of co-opetition is very popular. In 2005, Toyota and Peugeot jointly developed Peugeot 107 – a small city car for the European market. The Hyundai Motor Company too, created an engine jointly with Chrysler Corporation, called Hyundai Theta. Even in the late 1990s, Microsoft and Apple signed a contract for joint software development following which Microsoft purchased close to $150 million worth of Apple’s stock and the latter dropped a long-standing patent lawsuit against Microsoft!

Today, situations in the corporate world change at the blink of an eyelid. If arch rivals HT and TOI can shake hands to compete against Mail Today from the India Today group, then perhaps the much-hyped rivalry between King Khan and Big B may become history soon. Question is: who’s their common enemy? Well, that’s for us to know and you to find out. It’s a world of ‘co-opetition’, remember? :-

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Monday, August 04, 2008

The government is playing spoilsport

Operators agree that despite being pro-technology, the government is playing spoilsport in their case and hence they are unable to curb the reds in their annual reports, which is also hampering future expansion plans. Kaushik points out, “The burden of taxation on DTH players is very high,” referring to the huge 56% tax that DTH subscribers have to pay as consumer tax. These include sales tax, VAT, excise duty, et al, over and above the 3% CST. Not to forget the 10% license fee and corporate tax that the government charges. Of late, there has been some relief that has come their way in the form of a cut in the license fee on April 16, 2008 by the I&B ministry. The fee, which was earlier 10% has been brought down to 6%. However, operators consider the move as a mere drop in the ocean, given the deluge of taxes that they have to pay.

There’s good news in the offing too. The government has expressed its keenness to roll out the second phase of CAS (Conditional Access System), and soon. When this happens, DTH companies can make maximum hay, as witnessed in the previous round of CAS implementation. At the time, while the analog CAS was able to woo about 5,20,000 subscribers, DTH players managed to walk away with a booty of 6,00,000 subscriber additions. Tata Sky, which went into a marketing overdrive around the time (and even roped in Bollywood stud Hritik Roshan as brand ambassador) was able to add over one million subscribers to its kitty, in merely a year of operations.

There’s a caveat to these happy times though. CAS implementation in India has always been a contentious issue (with cable operators up in arms against it and even some state governments opposing its implementation) and implementing the 2nd phase will be no cakewalk. “The first round of CAS was greeted with mixed experiences on the part of the government as well as the DTH operators,” says Kaushik, adding that there are still a few loose ends that the government wants to work on before giving a green signal to the 2nd phase of CAS (which includes enacting and policing stringent compliance norms).

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
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IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Friday, August 01, 2008

Niche is the New Mass

Move over mass marketing, niche is the latest crush for marketers. 4Ps B&M probes deeper and unveils the simmering trend that marketers can afford to ignore, but only at their own peril... By pallavi srivastava, savreen gadhoke & angshuman paul

Imagine Vijay Mallya launching plush Kingfisher flights with soft leather couches, live bands, et al, for travellers seeking only luxury-in-air. Or HP launches customised laptops only for tweens (age group 8-12 years) complete with in-built ‘homework’ software. Or imagine Star India launching a 24-hour yoga channel for health freaks alone. Do the above ideas sound suicidal, set to make a big red blot on their respective balance sheets? After all, these niche products and services will entice few customers and ultimately take away from the bottom line than add to it, right? Wrong.

In the emerging market-o-nomics, new money can seemingly be made only by servicing newer niches. Take the example of one of the biggest mass marketers, Maruti Suzuki. The omnipresent Maruti 800 for years remained a symbol for every Indian who was driving or aspiring to drive a four-wheeler. But that was when the only competition for the nimble 800 came from bulky yesteryear models. Gradually Hyundai (Santro), Tata (Indica) and Maruti’s own Zen sauntered into the market, allowing the consumer an elevation in comfort and style. Today, the 800 and Alto may still be the car for the masses, but their sales are showing negative YoY growth. Maruti is catering to the demanding and discerning consumer (the nouveau niche), with the Swift and SX4. “It’s all about horizontal as opposed to vertical segmentation. Some consumers may go in for a Swift because it’s ‘their kind of car’ rather than the fact that it is cheaper than Esteem,” offers ace marketer, Santosh Desai.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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