Still MAC! Yes!

Despite the VAT rate increase, McDonalds released its new advertising campaign themed, “Affordability” for its Happy Price Menu with the central message, “You don’t need to think twice when McDonalds has burgers at only Rs. 25.” Earlier, the same burger was priced at Rs. 20. With the ad-drive, McDonald’s is hoping that the Young Adults No Kids (YANKS) group, which is seen contributing to 75% of McDonald’s footfalls, would not really mind the 25% increase in prices if the same is communicated appropriately. Given that McDonald’s has been ranked in July 2010 as the 12th best brand in the Asia Pacific region by one report, the presumption of McDonald’s holds weight, if not evidence, given that it caters to above of 2 lakh customers in India on a daily basis, by various estimates. In related news, in the United States, McDonald’s profits were up 12% and reached a promising $1.23bn. Apparently, McDonald’s is also in the process of streamlining its supply chain processes much better to ensure these profits rise further in the future.

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Source : IIPM Editorial, 2011.

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

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4Ps B&M analyses

Mercedes has proven to be that fast second-mover. But how does the company plan to market its latest offering to the Indian consumer? According to estimates, the size of the pre-owned car market in India is expected to be 10-15% of the new car market volume (sales figures for the first half of 2010). This figure is expected to rise substantially over the next couple of years, which makes the pre-owned car market critical for all luxury carmakers. So what marketing mode of mass communication are the second-hand car sellers banking upon. Says Debashis Mitra, Head – Sales & Marketing, Mercedes-Benz India to 4Ps B&M, “A large chunk of awareness will depend on the word-of-mouth advertising through the consumers in the pre-owned cars business.”

On the proactive front, the company plans to follow conventional advertising methods to promote its second-hand car arm in the Indian market, as it has been doing for its passenger car business so far. Talking about outreach, the company has rolled out its Proven Exclusivity program across four cities (Phase I) and plans to take the count to 12 locations by the end of 2010. Aulbur also says that Mercedes is expecting to generate around 10-15% of its topline via the used car route by 2011. Experts also opine that the second hand car business will guarantee greater footfall in Mercedes’ showrooms across the country.

There is a challenge that threatens to decelerate this dream run of the Mercs – the unorganised market. According to industry data, 90% of the resale auto market belongs to the unorganised segment, which covers not just the friendly neighborhood second hand car dealers but also the one-to-one ‘grey’ dealmakers. There is one hope though – thanks to the segment in which Mercedes operates, it is widely believed that the consumer will prefer the organised channel.

Even in other segments, competitors like Maruti True Value (Maruti’s preowned car reselling arm), have been showing growth rates between 25-50% month on month (data available till February 2010). At the same time, due to the fact that there is no dearth of top class service and support facilities for even the grey market purchases/imports, one would have to wait for the market figures to come in, before confirming Mercedes’ success. Sixteen years and 30,000 units sold in India – what does the future hold for Mercedes? Whatever it does, its long-earned glory in India will come in handy.

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Source : IIPM Editorial, 2010.

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

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IIPM makes business education truly global
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Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
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It’s a Fox’s Jump

FOX International Channels (FIC) which is a subsidiary of the FOX entertainment group has added 7 new channels to its portfolio in India. FIC which produces and distributes entertainment, sports and movie channels around the world is part of media mogul Rupert Murdoch’s News Corp. Out of the seven new channels that the company has announced to be launched in India, FOX Crime and FX are already available but only with DTH players like Tata Sky and Sun Direct; but will soon be available with other DTH players and cable distributors going by the announcements made by the company. These new channels are in the genre such as music, wildlife and crime and will give the Indian customer more options in the space. This will apparently bring change in the entertainment space because FOX is attempting to bring its international experience in play to capture more market share in the Indian market. FOX, for records, has 170 plus channels in its global portfolio and may bring a few more if these launches are successful.

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Source : IIPM Editorial, 2010.

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

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IIPM B-School Detail
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Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
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NISSAN, WHY SO SERIOUS? NOT SO SERIOUS!

Roping in brand ambassadors for a larger awareness and acceptability of the product is a trend that does not have many takers in the Indian automobile sector. An SRK for i10, Aamir for Innova and Big B and Junior Bachchan for Versa are a case in point. However, Ranbir Kapoor has also recently made it to the list as he has been signed by Nissan Motors India for the next three years. In fact, while Micra was able to register only 600 bookings in the first six weeks, post Ranbir’s entry, the automaker got an additional 400 bookings within two weeks. But with only 11 dealerships all India, celebrity or no celebrity, sales will never thunder up. Apart from Micra, Ranbir will promote various other products of Nissan. Nissan has also done a handful of BTL activities to promote the upcoming Micra in the Indian market that were in a way, innovative – but only in a way. The company seems to be hunting for the consumer based on tried and tested concepts. “We always focus on addressing our customers with creative and unseen marketing activities. Moreover, we use our best brand ambassadors, our carlines with a clear benefit for the customers,” explained Lutz Kothe, Chief General Manager – Marketing & PR, Volkswagen Group Sales, India to 4Ps B&M. There is no denying that Nissan’s efforts have been able to work in favour of the company, but with consumer choices changing fast, Nissan needs to bring in creativity in its future campaigns. And of course, dealerships...

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Source : IIPM Editorial, 2010.

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

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

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Tablet’s Big War

Mark Hurd (CEO, HP; above) is a worried man. And so is Michael Dell. And mostly because of Steve Jobs, whose iPad launch, for whatever reasons, has catapulted Apple into becoming the second most valuable company on the planet (after ExxonMobil). The bone of contention is the tablet PC market, with HP (about to launch Slate as their iPad answer) and Dell (about to launch Streak) ready to jump into the market in a big way. While HP has its distribution as a plus, Dell has its pricing strategy to beat Apple’s first mover advantage. But HP might score in another area – after their recent purchase of Palm, HP gets unrestricted access to use Palm OS on their tablet PCs, rather than the previously decided Windows 7. And then again, it could be neither HP nor Dell. Latest news is that not only is Jobs relaunching a ‘better’ version of the iPhone (a smaller iPad perhaps?), but even Nokia, Microsoft, Sony and Google are coming in the tablet PC market. jayant mundra

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Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

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

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