Shinzo Nakanishi, MD, Maruti Suzuki India

Maruti’s market share and stock price has taken a beating in the recent past; blame competition for it. Shinzo Nakanishi, MD, Maruti Suzuki India, explains the comeback plan of the company to B&E.

B&E: The company has capacity expansion plans for 2012. How do you plan to manage till then, as the company is selling whatever it can produce?
SN: The company was working on ways to bring that to an earlier date and I am pushing my engineers very hard to ensure that Maruti is able to start the additional 250,000 units production as soon as possible. However, as of now, I will not be able tell you by when we will be able to start our new assembly line. But till then, we will have to manage with out existing capacity, and look at options by which we can maximise our production.

B&E: What about the developments on Suzuki Motor Corporation’s alliance with Volkswagen?
SN: The talks with Volkswagen are going on at a global level but there is still no clear picture as of now. However, there is very much a possibility of an OEM (original equipment manufacturing) supply contract with Volkswagen, which will be similar to what Maruti has with Nissan. But there is no possibility of sharing a common production platform with Volkswagen. Keeping in mind the fact that the German company’s production and product development costs are very high, it could make our business model unfit for India.

B&E: What prompted you to launch a five CNG models, even before a proper infrastructure was available for usage?
SN: We had two very radically different options in front of us regarding this – either we could wait till the point when the infrastructure got ready and then launch our products or being a market leader, we act first and allow competitors to follow us. We chose the second option!

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Source : IIPM Editorial, 2012.

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

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The European Venture Capital Association data says that while US and UK had the “broadest and most developed PE markets in the world (ranked at number 1 and 2),” such investments had also led to dramatic innovation and stunning economic growth too! Let’s view India’s situation. The Economist Intelligence Unit’s 2005-06 worldwide survey shows that India is “second from bottom” in promoting environment for private equity. Apax Partners add in their Future Trends in Private Equity Investment Worldwide report, “India has the second worst environment for private equity,” as India is globally last in terms of ‘Market Opportunities’ (for Private Equity).

Says Nathan Kievman, Founder & CEO of DemingHill, a US based corporate social media consulting & marketing firm, “In my opinion, business schools should have entrepreneurship as a subject. In my MBA experience, I had a great deal of traditional book work coupled with hands on business plan development. Though I found a great deal of value from this later as I started my own firms, the experience left a huge void in practical knowledge of what really matters in a business.”

Indian B-schools definitely need to have a national economic view on entrepreneurship encouragement than a myopic view about simply being management educators. Newer programmes need to be introduced that are not rated as traditional MBA courses, but purely as entrepreneurship programmes – similar to how Babson College is rated globally. When Indian B-schools learn to do that, would be the time when India will truly have educators who are transformational rather than just being inspirational. Till then, the B in the B-schools will connote much more than the grade.

Amir Moin

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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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The on-going Rin versus Tide public spat has taken ‘comparative’ advertising to a newer, more dangerous level.

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Some label it ethical & cool, while many use adjectives like outrageous & unethical to explain this shift. what’s with this new trend of combative and in-your-face name-calling? a check-out.

In the beginning came innocence. The grass was green, the sky was blue and God above sat smiling at his blissfully contented creations… man, beast, nature, products. But over time, frown-lines replaced the divine smile, and the pleasant sounds gave way to cacophony! Life below was getting complicated at a fast pace, and peace was fast becoming a word of the past, as more and more mortals were earning the ‘consumer’ tag! Worse, for sellers, the tool of ‘slander’ remained the only one to project their offerings in a better light that their counterparts’; and thus comparative advertising was born.

The basic thrust of this genre was to highlight product differentiations in an exciting, entertaining and imaginative manner, designed to impact the prospect’s mindset (no matter how marginally) towards a shift in perspective, triggering-off a purchase intent. Today, champions of this mode of advertising believe that differentiation is indeed the foundation of good marketing and compelling differentiation, the hallmark of a great brand. But when eccentricity seeps in, it becomes a double-edged sword. Why? Because, it tends to undermine both, the confidence and appeal of the brand in question – so handle with care!

Critics however lambast this form of communication, branding it a pathetic example of poorly done advertising, symptomatic of “lazy creativity and lazy creative thinking. If it is blindly pursued, it only goes to prove that the company wanted to make its way round the process of seeking unique consumer insights, the foundation of a great brand idea and a solid consumer proposition. Finally’ in these silly, childish, exhibitionistic skirmishes played out in full public glare, one tends to forget who started the spat, who ended it and what the fight was all about! Besides, in these sensation-seeking times, public memory is woefully short and before long, it only becomes the next big “tamasha”!

Ad-watchers believe that this genre really took shape and impacted popular imagination with the well-recalled Coke v/s Pepsi face-off in US, during the 1970s. The audacious and hugely innovative Pepsi, achieved a startling breakthrough in the world of comparative advertising, when it had the guts to re-position the much-loved, iconic and established family beverage Coke as “My Father’s drink” and Pepsi as “The choice of youth…a new generation! Years later, Pepsi India threw a credible punch back at Coke, welcoming Coke to India in a masterstroke of a creative line: “Coke & Coca-cola are trademarks of the Coca-Cola Company. Pepsi is the choice of a new generation!” Point taken.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

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