While HR has been busy transforming itself to a strategic role, the CEO’s hr wishlist has kept growing

Ever since the publication of McKinsey’s ‘War for Talent’ research, chief executive officers and business leaders have emphasised the need for their organisations to manage and leverage their human capital by effectively attracting, developing and retaining talent, in line with the organisation’s objectives and direction. The world of business since then has grown, both in size and in complexity. Complex and large projects require large teams, which more often than not are diverse both geographically and culturally, and compose of people across a variety of educational backgrounds. Technology today has also made it possible for teams to work together virtually without ever having to have in-person interactions. HR faced a daunting challenge. The need of the hour was to develop HR professionals who were not only skilled in their domain, but would have enough knowledge and expertise to be able to contribute to a marketing manager, or a finance director’s talent management needs at the input level. It was then imperative that the HR function, as it stood in yesteryear, had to relook and revamp its roles to help large and complex organisations in making human capital a key strategic advantage over competitors. From where HR was, to what it needed to be, was a paradigm shift from being merely administrators of decisions made by others to becoming key decision-makers affecting business outcomes. HR leaders succeeded to a great extent and most business leaders today believe that the HR is making exceptional contributions in strategic areas, including talent management, succession planning, engagement, recruitment and retention and that senior HR executives have done a great job in their role of a business partner.

The business world, however, has been changing faster than ever, with significant shifts in scope and character. Organisations are learning to deal with disruptive technology, shifts in economic power, talent mobility and black swan phenomenon. Naturally therefore, while HR has been busy transforming itself from the tactical to the strategic, and has deservedly received ‘a seat at the table’, the CEO’s wishlist from the HR function has kept growing. Business leaders today expect HR managers to have a much deeper understanding of business over and above their essential HR skills. Read More...

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Showing The Ropes

His passion for education earned him the sobriquet ‘the change maker’. Prof. R.S. Sirohi joined Invertis University in January 2011 with an aim to provide quality education to rural students. His experience with prestigious institutions, including IIT Delhi as Director, helped him to take up this challenge. “When I was appointed Vice-Chancellor of the Invertis University at Bareilly, I realised that rural India is still untouched by the outside world of learning. It was an eye-opening and painful experience for me,” says Prof. Sirohi.

A vast experience in education sector, Prof Sirohi says, helped him best in introducing many revolutionary concepts in Invertis. He opines that students in rural regions are devoid of conducive educational environment and do not have an enjoyable learning experience. Formal education is very important as it helps in building a strong foundation. At the same time, transparency is essential for any system to function smoothly. “Transparency is missing from the education system which has invariably affected the quality of education,” he laments and adds that India has witnessed mushrooming growth of private universities and educational institutions but there are very few which provide quality education. Click here to read more...

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On a Correction Course

It has been a return to the roots for Mr. Ankur Bansal, when he gave up a plum career in the USA to come back to Indiaand take up the reins of a ‘philanthropic’ initiative that his grandfather took up in 1996.

Established 15 years back, New Delhi Institute of Management (NDIM) has been an All India Council for Technical Education (AICTE), Ministry of HRD, Government of India, accredited institution since inception. It offers management courses that are delivered to students through a slew of modern teaching techniques such as, the Case Study Method, Lecture Method, Seminars, Field Visits, Group Projects, Role-Playing, Experiential Learning and Simulated Exercises.

And looking after the entire management and operations related activities of the institution since 2008, has been Mr. Bansal. He completed his schooling and college education in New Delhi and pursued his C.A. and MBA from Carnegie Mellon University, USA. While, staying there, he choose investment banking as a career and had stints with Bank of America Securities, among others, to later return to India. Click here to Read More....

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She Writes Story Contest winner: Sheela Jaywant

Sheela Jaywant is one of twelve winners of the MSN-Random House She Writes a Story Contest', as chosen by our judges. Her story 'Yokemates' features in the 'She Writes: A collection of Short Stories' published by Random House India and available at all leading bookstores.

Sheela Jaywant has worked in a multi-specialty tertiary care hospital for many years and for half a decade in a five-star hotel. And in earlier avatars, as a librarian, teacher and UNICEFvolunteer. As an author of three books, Quilted: Stories of middle-class India, Melting Moments, and The Liftman and Other Stories, as well as a columnist and translator, she found that creative writing couldn't pay the bills. So she wrote three books of short fiction and did two translations alongside her day job. Later, many of her stories found their way into anthologies. When people ask her where she gets her ideas from, she says: 'you'.

read an extract from sheela jaywant's story 'yokemates'

Between Margao and Canacona, Vijay couldn't find a petrol pump easily, but every other kilometre, a bhaiyya from either UP or Bihar manned a sugarcane-juice stall. 'These so-called "outsiders" fulfill so many needs,' he thought. 'They till the farms, help with the harvests and build roads and homes, like the Goans did in the Gulf.'

Vijay had crossed over to Panaji at seven in the morning, by ferry, from Betim in North Goa. Taking the bridge across the Mandovi would have been another three kilometres. The ferry was free, even for cars. By nine he had passed bustling, chaotic Madgaon, a town that was still robust, but not as graceful as Panjim any longer. Of course, it still prided itself as the state's commercial capital. The merciless April sun seemed to have melted the tar road. The haze, the blinding glare through the windshield, and the guess that he might make a loss that day made the drive torturous. After the Karmal ghats he headed further south towards Chauri. The windows were still down, but there wasn't any breeze. 'The cashew crop from the jungles should be good,' he thought hopefully, for the cashew tree loved heat and humidity.

Through the eucalyptus trunks, he could see the occasional jungle-cashew tree dotted with yellow and orange fruit, like fluorescent, colourful ornaments from Dubai which the Catholics hereabouts put up on folding plastic trees during Natal, the season that stretched from the second week of December until after the New Year was brought in. Like wipers on a monsoon day, his eyes darted from side to side. For kilometres together, he could see only eucalyptus. Of course, there was the occasional mango tree, laden with fruit just waiting to ripen, kept warm and secure until May under the shade of the leaves. It was difficult to get someone to pluck mangoes or coconuts. Whether skilled or unskilled, a labourer took four hundred rupees per day, for five hours of work. No one worked the full eight hours.

in her own words: sheela jaywant Have you always been a writer? 

What made you start writing?

My first 'work' was a verse I'd written for the Illustrated Weekly of India, perhaps in the fourth standard. Have always been good at languages and writing short stories and essays.

What inspired you to enter She Writes?

Saw the request on the Net, and thought, why not send my story.

Why did you chose the category you did?

It fitted my story.

Do you have a writing routine - e.g. do you have favourite places to write/favourite times of day/do you write longhand or on a computer?

I prefer mornings, or late at night. At the computer. And I'm comfortable in my own corner.

Who is your favourite author?

Vikram Seth, Hanif, and some Marathi authors, too.

Which book has inspired you the most?

Can't say, each plays a role.

Which key piece of advice would you give to any other budding writer?

Be prepared for hard work, daily work, and hardly any payment. Preferably, have a day job to subsidize this love/passion.

Businesses too small to let fail

Why do small businesses have such a high rate of failure? What can be done to lower it?

4Ps Business & Marketing, in a strategic alliance with the new york times service, presents a column by howard Schultz, Chairman, President and CEO of Starbucks corporation

This is such an important question right now because so many struggling economies around the world desperately need their countries’ entrepreneurs and small businesses to succeed. The jobs that small companies provide and the high-quality goods and services their employees produce can give powerful boosts to a faltering economy.

Unfortunately, studies show that about half of small businesses fail in their first five years – for a variety of reasons. Insufficient capital. Inexperienced management. Lack of – or incorrect – focus. An irrelevant product or service that does not meet or inspire market needs.

But let’s assume a company gets all of the above right – even though capital is hard to come by these days. The company can still sink if it does not attract and engage the right people.

Let me take a step back to make my meaning more clear. The hardest part of building a company at the outset is recognising the need to invest ahead of the growth curve, and then having enough capital to do so. The kinds of investments I’m referring to are ones you’d expect: materials, inventory, technical infrastructure, marketing, real estate.

Generally, the largest investments are in pay and benefits. This is where many small businesses get into trouble: By trying to minimise “people”-related costs, a small-business owner can inadvertently stunt the company’s growth. That said, investing in people is not just about spending money. It’s also important to expend intellectual energy on ways to inspire great work.

So, to answer this question more directly, small businesses have such a high rate of failure because their leaders do not put enough money or time toward employing, retaining and maximising top talent.

When I speak to small-business owners, I encourage them to follow a few guideposts:

LOOK FOR CHARACTER AS WELL AS SKILLS WHEN HIRING

Even in a down economy with high unemployment, the pool of the most talented people in any given area is shallow. That pool gets even shallower when the bar for hiring is skills PLUS strong character. This is the pool you want to hire from, even if it takes a little longer to fill a role.

Interview people through the lens of building a culture of trust. Ask yourself: How will they lead – by instilling fear or by encouraging greatness? How will they treat their direct reports, suppliers or customers – with respect or with condescension? Over the years, I have seen that character is more important than experience. People can learn the nuances of a job, but passion for doing the right thing cannot be taught.

Remember, the first people in the door will hire the next generation as you grow, so layer the organisation with teams that are smart, respectful, collaborative and just plain nice.

TREAT COMPETITIVE COMPENSATION AS A STRATEGY, NOT AN EXPENSE

Back in the late 1980s, at the beginning of my management of Starbucks, I wanted to be the retail employer of choice. I felt that I could achieve this only if, after hiring bright, friendly people to work in our shops (and our offices), I paid them more than the going wage in other restaurants and stores. I also had to offer benefits that were not available elsewhere.

Doing so came with a price. Back then, health-care costs were soaring and most companies were cutting benefits – much like today. Some of my investors accused me of irresponsibly raising expenses when the company had yet to turn a profit. I explained my position with data, showing that competitive pay and benefits would increase retention for existing employees and thus cut recruiting and training costs. Ultimately, my argument to investors proved true.

That was a long time ago, but treating overall compensation as a strategy for success, and not just an expense, remains critical. Today’s pay and benefits mix should be a sustainable blend of things beyond merit pay – stock options, retirement-account-contribution matches, tuition reimbursement, health-care coverage – that each hold value and add up to a total package that addresses people’s well-being on several levels.

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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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IS TODAY’S FILM CRITIC MORE MARKETER THAN INTERPRETER?

In an age of crass consumerism, has the Film Critic sold off his soul to market forces or does he still bring a special, enriching perspective to the table? 4Ps B&M’s Consulting Editor Monojit Lahiri probes this delicate terrain with some articulate individuals

It started with a casual conversation regarding the forthcoming International Film Festival of India (IFFI) to be held in Goa, on the 23rd (November 2011). Created to showcase the best of engaging & interesting Indian – and global – cinema, film festivals have always attracted the true-blue cognoscenti and cinema buff of the discerning kind, desperate to sample a life beyond Bollywood! Where there are film fests, can film critics be far behind? In today’s world – especially with Bollywood booming and blitzing all over the place in all-consuming fashion – can a real committed, dedicated film critic ever hope to survive? Should he, under the circumstances, review and re-invent his role to be part-marketer, part-interpreter?

Respected, veteran Film Critic Saibal Chatterjee is first off the block with a zinger. “I don’t think it’s a question anymore, but a solid factual statement!” he says. In fact, he is of the firm belief that this breed – film critics – is slowly getting marginalised and residing mostly in the world of blogs or little magazines. “What you got today are mostly reviewers who dole out opinions that are reader-friendly, touching the surface areas of the film in a glamorous way. It is completely in keeping with the mood of the times where cinema is perceived as a product to be consumed by the largest volume of consumers, possible. So, marketing, branding, advertising and promotion skills take precedence over knowledge, scholarship or insight. Pitching it right to a dumbed-down readership is the name of the game. In this scheme of things, where does the poor film critic feature?!” Chatterjee tells 4Ps B&M.

Communication specialist Bikram Ohri begs to differ. He believes that we live in nano-second times where reverence and sanctity to anything out in the public domain needs to be reviewed. “Boss, movies in India are entertainment products. Can we please stop worshipping them, wait breathlessly for that magical ‘Eureka moment’ and cut to the chase?! The critics mandate today is clear: Blend commentary in a cutting-edge way that entertains as it enlightens. Also, please go easy on the heavies! As the great Hollywood Director Billy Wilder once said If you are lookin’ for art, hell, go buy a Picasso. If you’re lookin’ to have fun and be entertained, hey, welcome aboard!” says Ohri. Joining the party is a noted film critic who refuses to formally participate or divulge her name for professional reasons. “It’s all very well to talk about art, sensibilities and values but with the corporates entering the scene with their deep pockets, the equation within the system and industry has dramatically changed. Film criticism, an intrinsic part of this universe, has been impacted as well. There are no two ways about it,” she tells 4Ps B&M.

Film Critic Mayank Shekhar brings his own spin to the table. “Some very novel things have happened in the last few years in the industry that has certainly impacted the role of the film critic. For one, there is this new entity called Trade Analyst. It is a vague term but this person seems to grab a lot of space in the electronic and mass media. It presupposes some kind of academic/scholastic background but it really is about ringing up distributors from all centers to get box office collections! Does that answer the definition of a film critic? Then there is the smart, sharp and subtle co-opting of some members of the fourth estate by Bollywood to ensure popular reviews and feel-good notices in the media,” says Shekhar. He explains that all this is a byproduct of the huge budgets powering big-ticket Bollywood projects. Therefore the marketing machinery has to go full steam to reach, persuade and seduce the audience into seeing the film. “However all is not lost, but yes, it is a tricky and challenging calling!” he adds.

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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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HCL Launches Console

HCL has become the first Indian company to launch handheld consoles. It is set to take on international gaming giants like Sony & Nintendo. According to industry estimates, there are about 300,000 handheld consoles in India and the segment is witnessing a year-on-year growth of around 35 percent. HCL ME-converged devices comprise multimedia options like imaging, voice recording and recording TV programmes on the consoles. But while HCL is going after the usual gamers with this new surprise, Nintendo and Sony have already made their mark in the Indian and global markets. Moreover, they are now coming up with a new 3DS handheld that enables 3D gaming. It’s a strategic move for HCL, but with competition on its heels, ‘tough times ahead’ is an understatement.

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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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LG's introduces new all-in-one touchscreen PC

Korean giant LG Electronics has unveiled an all-in-one touchscreen PC developed in partnership with Intel at the ongoing Computex technology exhibition in Taipei. Called LG V300, the PC will feature Film-type Patterned Retarder (FPR) display which is presently used in LG's Cinema 3D TVs.

According to LG, the TV will include second-generation Intel Core processors, 3D FPR display, a triple camera system for multi-touch capability and In Plane Switch (IPS) screen technology that creates a 178-degree viewing angle. Featuring a 23-inch full HD LED LCD display, the all-in-one LG V300 packs two sets of light weight polarised glasses for the 3D experience. At mere 44.65mm thickness, the PC's connectivity options include 802.11 b/g/n Wi-Fi and choice of either DVD drive or a Blu-ray drive.

As for the OS, the PC will come with Windows 7 Home Basic or Windows Home Premium. The users will have an option to choose from Intel's Core i3, i5 or i7 processors. For memory, the PC packs 8GB RAM and up to 750GB hard drive. The PC will also include full support for Digital Living Network Alliance (DLNA) to enable data sharing between devices. It will also support Intel's Wireless Display (Wi-Di) to wirelessly stream content to TV.

LG V300 is expected to launch in Korea in July followed by markets in Europe, Middle East and Asia.

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

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The Occult OF Seven

They are different in many ways, yet similar in many others. Some of them belong to affluent families with political connections, while some have been brought up in a typical pro-education middle class fashion. Some of them have fancy degrees in marketing or advertising while many of them were just born with profuse raw talent and learnt everything on the job. They have been fickle yet focused. They have been clueless about their paths yet cognizant about their journey. As much as they are adored, they are envied just as much. And yet, there is the strangest connection in this creative coven. They started their journey at different times, trod different paths, only to arrive at a similar destiny: the occult, as we call it. What binds these seven is that single-handedly, they have conquered the creative cosmos of television and have been, in many cases, the singlemost reasons that their respective firms have been fantastically successful. Some of them work with General Entertainment Channels, some have been bitten by the youth channel bug, others are working with production houses, while a couple of them have even started their own production outfits. And almost all of them have some journalistic background hidden in their lineage... Pallavi Srivastava of 4Ps B&M presents, India’s most radically – and effectively – creative people >>> The Occult of 7

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Source : IIPM Editorial, 2009

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

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I’m ‘G’enuinely (de)’M’otored!

The beginning of June was the end of GM’s painful attempts to stand as an independent company. The Obama administration has provided $30 billion as aid for the company. But is the comeback possible?
By Pawan Chabra

“I laid out what needed to be done to save two of America’s most storied automakers - General Motors and Chrysler. These companies were facing a crisis (that was) decades in the making,” explained American President Barack Obama, in an announcement that would have broken the hearts of millions of Americans, though they had long seen it coming. June 1, was the fated date when the world witnessed another American iconic brand getting ripped apart on the papers, when the 100 year old ailing General Motors (GM) filed for bankruptcy under the Chapter 11 treatment.

Although the Obama administration will be providing another $30 billion in aid (apart from the $20 billion given earlier) and have a controlling 60% stake in the company, the Obama administration has announced that it has no interest in running the company, which, in plain words, signifies that Obama’s auto task force will not interfere in the day to day operations. Moreover, the Canadian and Ontario governments have also given a helping hand as they are putting in $9.5 billion for a 12.5% stake. The Government is aiming at a leaner GM, which will include more job cuts, dealership closures, plants shutting down and shedding of brands. GM is planning to close 14 US factories and three warehouses to cut on its operating costs, affecting its 20,000 workers. The company is aiming to bring the total number of plants in US from the current 47 down to 33 by 2012.

In fact, the company may also shed brands like Pontiac, Saturn, Saab and Hummer. As the Government plans to split the company into two parts; out of which, one will be the new and ‘so-called’ healthy GM and the other the old GM will comprise the sick assets of the company. This will be done through a Section 363 sale, which would transfer the new GM assets to an entity owned by the US and Canadian governments, the United Auto Workers(uaw) union and the company’s unsecured creditors. Obama frankly explained the importance of the company to US citizens as he said, “In the midst of a deep recession and financial crisis, the collapse of these companies would have been devastating for countless Americans, and done enormous damage to our economy – beyond the auto industry.” But will this landmark streak of communism in the ‘die hard capitalist US’ be able to give the Americans their pride back?

Going by the example set in the recent past of Chrysler, there’s surely a ray of hope. Though many experts claimed just before Chrysler was planning to file for bankruptcy that it will lead to a collapse and sales will fall down very drastically; that didn’t happen. Rather, the company recorded higher sales figures for May than that of April. But as San Oppenheim’s auto analyst Christian Breitspecher elucidates, “GM is very large and different from Chrysler and restructuring the company will take a lot more effort and time as compared to Chrysler.”

Chrysler has already taken some bold steps in the form of closing production units, cutting on franchises and more importantly, announcing their plans in the electric segment. As Obama predicted that Chrysler needs a two-month reorganisation, the destination is more or less in sight now, as Italy’s Fiat will be taking over its healthy assets. There is no denying that GM has a much more complex structure. But a way out could be listening to the consumer and providing cars they need; in particular, smaller, fuel efficient cars. The leaner structure and the earlier mentioned $30 billion should help the company to clear its debts and be capable enough to match the likes of Toyota. A ‘new and healthy’ GM is expected to be launched in about 60 to 90 days as a separate and independent company. Obama made it pretty clear that the Government is funding GM with only one goal and that’s to, “get GM back on its feet, take a hands-off approach, and get out quickly.” Legendary GM CEO Alfred Sloan once said, “If you do it right 51% of the time you will end up a hero.” Well they do not have that leeway, since this could be GM’s last chance. In fact, they could consider getting out 51% faster in time, if at all!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

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

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How the ‘men’ beat Honda

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Brand: Maruti SX4
Agency: Lowe

Swift transformed the way people looked at Maruti; but SX4 ensured that people knew that Maruti could also make big cars. Men are back was the key reason why SX4 could outshine market leader, Honda City, selling 3000 units as against Honda’s 2656 units in the very first month of its launch. Manly, eh?

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

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NARESH GUPTA, EVP-PLANNING, PUBLICIS

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1. Incredible India campaign. It made the world seek India out
2. Pulse Polio made people get out of their homes and inoculate their child on the chosen day
3. Maggi’s ‘2 minute’ campaign
4. Coca-Cola’s ‘Thanda’ campaign
5. Nirma campaign highlighted the power of inherently Indian idea

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

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Adding winds to the wings!

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Spreading wings is an inherent activity for a growing bird. And that’s what exactly Suzlon Energy, the Indian wind turbine maker, did in 2007. To add winds to its wings it acquired REpower for Rs.73.14 billion in a hard fought bid battle against its French rival, the Nuclear Energy Group, Areva and others. Well, the effort hasn’t gone waste, as along with a 60% stake in REpower, Suzlon has also pocketted the 10% market share enjoyed by REpower in the international energy market. “Suzlon has gained from this acquisition as it has helped it to extend its reach in the global wind turbine market,” agrees Vinay Nair, Oil, Gas & Energy Analyst, Khandwala Securities.

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

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Shantanu Das Gupta,
VP, Marketing, Whirlpool of India

4Ps B&M: What kind of profits would you expect this summer?
We are expecting good sales/growth this summer. This is primarily due to the fact that we have recently launched a slew of new products across our range. Also the indications are of a hotter summer this year (as compared to a relatively cool summer last year).

4Ps B&M: What new products would you be launching this summer?
We have recently launched a slew of new products across our range. We have revamped our range of washing machines with 11 new models across our top load and front load range with innovative features like 1-2-3 wash and ‘Sports Wash’. We have launched new models of frost free refrigerators and air conditioners with unique MPFI technology. We will further unveil new products as the year goes on...

4Ps B&M: Your marketing strategy?
We are focusing on new product launches, which offer superior value as compared to our competitor’s. These are being promoted all across the country with appropriate awareness and huge conversion campaigns.

4Ps B&M: Is there any product category in which you intend to increase your presence?
We are focusing on consolidating on the already significant presence in ACs and increasing our presence in water purifiers & microwave ovens...

4Ps B&M: Do you think that this season will improve your situation?
If the reference is to the macroeconomic scenario, then we cannot comment. As far as Whirlpool is concerned, we have been growing so fast. We expect the growth to continue across all our categories and we will witness a significant gain in market share too.

4Ps B&M: What are your growth targets for the mid-term?
We have grown at more than 20% in most of our key categories during the past, and expect the trend to continue.

4Ps B&M: Cut in excise duty, reduction in petrol prices and CRR are important for the consumer durable segment. What’s your take on that?
We are sure that such moves by the government will help boost consumer sentiments. More significantly though, we would like to bank more on our own initiatives. These initiatives are aimed at providing better products and value to the consumer as compared to competition and gaining share.

4Ps B&M: What are the challenges that you foresee?
The overall political and economic scenario are surely challenges which the entire industry is facing. We are equally affected and are sure of our ability to withstand the same..

4Ps B&M: Your retail plans...?
We work very cohesively with all our trade partners, including traditional and modern trade formats. We have increased our presence to more than 12,000 outlets across India, and are continuously working on the same.

4Ps B&M: Last year, you increased prices due to increase in input costs. What about this year?
Commodity prices have shown a softening trend over the past few months. However, this trend will have to be sustainable in the long run for it to impact pricing. Nonetheless we are providing products with a high- value proposition...

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Source : IIPM Editorial, 2009

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

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It was believed, till 1954, that it is impossible to run a mile under 4 minutes. A young medical student in Queen’s England, Roger Bannister managed to do exactly that. Fighting a 40 kilometre per hour crosswind, he ran a mile in under 4 minutes creating history of sorts. Deepak Puri, (a mechanical engineer from Imperial College, London) is not much unlike Bannister. He too faced trying odds (his first two entrepreneurial ventures were put paid due to labour militancy in Kolkata), but went on to create history for Indian business when his third venture Moser Baer, actually became the first Indian company to excel globally at manufacturing optical storage devices.

It all started almost a quarter of a century back in 1983, when Moser Baer began manufacturing floppy discs. The year was significant, as in the spring of 1983 itself, the compact disc technology had just been introduced in the United States. Puri, the visionary had clear plans, and by 1998, Moser Baer begun manufacturing CD-ROMs and today stands tall as India’s largest and world’s second largest optical storage manufacturer. In an interview to Planman Media, Puri said, “We are recognized today as a technology-driven efficient manufacturer and are proud to put India on the global technology manufacturing map.”

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Source : IIPM Editorial, 2008

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

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China was just such a place,

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China was just such a place, and few companies who bought or built businesses there, especially in its early days of open-door commerce, escaped a few years of “learning curve” losses. Similarly, a fundamental belief in an emergent technology often means years of struggle before achieving profitability. Insuch cases, you have to hang on. our strategy depends on it.

But prolonged attempts to fix a business where that purpose is gone, rarely make sense.

Without corporate life support – which peripheral businesses usually don’t get, for the obvious reasons – such businesses have no option but to fend for themselves. It’s a slow death for everyone involved.

How much better, then, to give your people their best hope for a better future. The company buying your “failure” usually has grand plans for its resurrection. Fight your inertia, and let them go for it.

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Source : IIPM Editorial, 2008

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

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"BEND IT LIKE BECKHAM"

When IIPM comes to education, never compromise

It’s being touted as the most lucrative sporting events of all times. If the favourite teams reach the finals, then the final match alone would attract as many as 300 million viewers!

That’s THE UNOFFICIAL

If you can’t use it officially, then use it “unofficially”, for no one can afford to stay away from this event. The world’s most creative advertising agencies are at their seductive best to grab the attention of the viewers. Everyone knows the reach of this event is tremendous. If you want to target young men this year, this is the event for you.

So if Pepsi, Nike and Carlsberg could not make it to the “official sponsors” list, they have a plan up their sleeves to help themselves win the hearts of this huge TV audience. Nike has used the innocent childhood images of Brazilian star, Ronaldino, to waltz straight into your hearts. Carlsberg on the other hand, decided to use the old heroes of the 1996 World Cup, who it showed enjoying a well-earned pint of Carlsberg after winning a game of football.

Once bitten by Pepsi’s “Nothing Official About It” campaign of 1996, Coca-Cola is leaving no stone unturned to ensure that its arch rival stays out of the stadium, the TV and even the minds of the fanatic fans. It has bought the in-stadia rights for the cup. It has tied up with Adidas to distribute soccer memorabilia. Thus, ensuring that Pepsi does not get a chance to pop-out from anywhere. To top it all, Coca-Cola India is an associate sponsor of ESPN-Star. So viewers in India, Pakistan, Nepal, Bangladesh and Sri Lanka would only get to see Coca-Cola ads on the TV screens during the matches. Pepsi, the virtual owners of cricketing events in India, are not disappointed. They are glad to stick to cricket, which is “the” sport of India. However, considering 75 million Indians watched the soccer World Cup four years ago, one wonders if Pepsi’s optimism is a wee-bit fake. It sure seems to have lost to Coke this time.

While Addidas paid millions, it’s Nike, the “unofficial sponsor”, which is once again hogging all the limelight. Just the way it did in 2002. Adidas, a German company, is going all out to block Nike ads. It would be too embarrassing for it to lose the advertising battle on its home turf. Not to be deterred, Nike has gone ahead and teamed up with Google to create the first social network for the fanatic football fans called “Joga.com” (joga bonito in Brazil means “play beautifully”), where it expects millions of people to register. Today “online” is the “lifeline” of young people, and thus, they believe, would be more effective than the traditional way of advertising. So while Nike is trying to even out with Adidas, Google is trying to settle scores with Yahoo – one of the official sponsors of the World Cup.

Back in 2002, Elvis, once again gave a hit, all thanks to Nike who used a remix version of his very popular song “A Little Less Conversation” for their ads, where they created a “secret tournament”. The ads were so popular that the Elvis song topped the charts and became the number one hit that year. Nike ads were more popular than Adidas. To top it, that year Brazil (Nike sponsored team) beat Germany (Adidas’ home team). This year, Adidas is taking no chances. It’s spent $200 million on its “+10” campaign, which shows how anyone, plus ten players, makes a football team. Its kid, Ronaldinho (Nike ad), vs. kids, who make their football team (Adidas ad). Let’s see who wins.


Lufthansa has dressed up 40 of its aircrafts by putting football decalls on their nose cones. So, even though Emirates has paid the millions to FIFA, it’s Lufthansa with its football nose that seems to have stolen the spotlight!

Afterall, it pays to be associated with the World Cup. So the Swiss Tourists Board has started luring visitors with an ad, which goes like this “Dear girls, why not escape this summer’s World Cup to a country where men spend less time on football and more time on you?” Well, worth a thought ladies, when you have brawny lumberjacks, and Mr. Switzerland 2005, extending the invitation.

THE OFFICIAL

Old, hackneyed phrases and mundane themes will not work this time. You’ve got to be different to be noticed. It’s estimated that about €2.5 billion would be spent in Germany on advertising. One can just imagine the onslaught of ads, the viewer would be subjected to. According to One Publicis, the media-buying unit of Zenith Optimedia, global ad spending would increase by 6% this year, to $429 billion due to the World Cup. With such an amount of advertising frenzy, it’s obvious, only the good will survive.

So Master Card spent 32 days to shoot its ad, which ends with “football fever. Priceless” 100-odd fans were shown cheering from 30 different countries.

Gillette has a spot, which shows fans wearing the colours of their team and carrying the national flag. Depending on where the ads will be aired, the company plans to digitally alter the colours to match with those of the country where they are being shown. Budweiser has decided to play it safe. It’s an American brand, and Americans have a reputation of having no football knowledge. So very intelligently it’s come out with the slogan “You do the football, we’ll do the beer”. At this point, no one wants to mess with others’ sentiments.

FIFA has signed agreements worth more than $888 million with its various partners and sponsors. For a whole month it would command the viewership in 189 countries, thus making it a very powerful body. It’s laying the rules and everyone is following them. So from June 9 to July 9, the AOL Arena would change its name to FIFA World Cup stadium, Hamburg. It would cost the German authorities half-a-million euros as settlement charges to the stadium sponsor AOL. Twelve German stadiums would lose their official names for the next one month, since they are not the official sponsors and FIFA does not want them anywhere near its game to give them even an iota of publicity. Otherwise, no one would shed those millions to become their official sponsors. Hence, within a kilometer of the 12 stadiums, FIFA forbids the appearance of any logos & advertising of non-sponsors. To complicate matters further, FIFA has demanded that no public events be held on match days


THE UGLY

FIFA needs to take care of its sponsors, for them to take care of it. The 2010 world cup would have only six worldwide partners, unlike 15 this year. One would need $125 million to belong to this elite group. The kind of mega exposure, this event guarantees, it’s not surprising to find sponsors already fighting for that coveted title of “partner 2010”. Not just the 2010, but companies like Budweiser have booked themselves as the official sponsors of the 2014 FIFA world cup, too.

With the rising popularity of sports, it’s the corporate sponsors who have become more powerful than the federations which govern them. These are the companies whose annual revenue is several times the GDP of smaller countries. They are the ones who put millions at stake and want every penny’s worth of return. Sometimes, things take an ugly turn too. Nike sponsors the Brazilian soccer team only because of Ronaldo. It could not afford to allow him to rest, even though he suffered from convulsions the night before the 1998 world cup final. He had to fight it out in the field with Adidas sponsored Zinedine Zidane, else Nike would lose its millions. In order to ensure that the match between Nike and Adidas, oops sorry, between Brazil and France goes as planned, they didn’t hesitate to pump Ronaldo with pain killers and force him to play.

THE MONEY

“Sports” is no more just sports, it’s a merchandise, and the players are peddlers of the goods of their sponsors. When Ronaldo plays, some 2000 jerseys with the number used by him during the game, are sold everyday.

Beckham is a brand to reckon with. Today his hairstyle gives him more media coverage than the number of goals he scores. He has sold sunglasses for Police, clothes for Marks & Spencer, cola for Pepsi, mobiles for Vodafone and now, for $9 million, he would be the face of Gillette for three years. Analysts estimate, he is a brand worth $375 million.

Sports celebrities are demigods today. On the Indian turf, you have sponsors dancing to the tunes of tennis-sensation, Sania Mirza. When she encountered Maria Sharapova, the advertisement rates of that match shot up by 15% in India. She was specially assigned one of the three show courts so that the game could be telecast directly to India, where many were staying up late to catch her on TV.


Cricket is the second religion in India and cricketers are worshipped, by both the fans and the corporates. Sehwag endorsed Dabur tooth powder and stopped the drop in its sales. In fact, the ad recall of the brand increased by 40%.

Sports stars guarantee television exposure of corporate logos when they play their game. That’s what all sponsors are looking for. The rules are straight, if you play well you earn not just fan adulation, but sponsors too, who will ensure that you and your fans wear their brand! The sporting-goods industry is estimated to be over $ 600 billion, which is more than the GDP of many countries. If we do a little more number crunching then consider this, in 1993, $9 billion worth of goods were related to sports, and the top three television networks generated $2.2 billion worth of sports related advertising while the cable networks generated $800 millions.

Every successful star, every and successful sporting event generates millions for the sponsors. When Japanese football games were aired on TV, Fuji Bank got one million new depositors that year! Business houses don’t hesitate to own or purchase sports teams, be it soccer or baseball or basketball. As long as they can be marketed, it’s okay. As long as people remain passionate about the sport, corporates will rake in the moolah. As the D-day nears, you will get to witness some adrenaline pumping action both on-screen and off-screen. Watch out for the sponsors, and see how they bend it better than Beckham!

Copyright © : Rajita Chaudhuri and Planman Media.

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

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Honey! I shrunk the consumers

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“Our families rejoice – a new life’s begun. Our circle is richer with the birth of this one!” A happy couple sent out this card when their precious bundle of joy arrived in this world. Little did they realize that along with them, LG, McDonald’s, Whirlpool, Surf Excel rejoiced too. A consumer was born!

Yes its true; today, the age of the target segment seems to be shrinking. Advertisers are realizing the urgency of targeting children while they are still in their diapers; lest some competitor should snatch them away. Advertisers are making their pitches to younger & younger audiences. Today, the age of the target audience has dropped down to two years. No wonder, recent studies have shown that children as young as 36 months can recognize an average of 100 brand logos. According to the Center for a New American Dream, babies as young as six months of age can form mental images of corporate logos and mascots. So, by the time they are 2 years old, they could very well become your loyal consumers. They are, after all, your future breadwinners, and hence worth investing on today. Going by numbers: from $100 million in 1990, today the spending on advertising to children has increased to more than $2 billion. An early bird catches the worm – and marketers are starting as early as possible.

“No means no...” But actually not for long; and every child knows that. They have to just keep on asking till parents give in and buy them what they so desperately want. This “keep asking strategy” is reaping rich dividends not just for children, but for marketers too. They have, in fact, quantified it too. On an average, kids have to ask nine times till their parents give in. That’s for the ones who are 12-17 year old. The younger ones are even more persistent. They don’t hesitate to ask for the same thing more than fifty times. It takes enormous will power to refuse fifty times... and parents do give in. Marketers apparently had never underestimated the ‘power’ of a whining child; and those who have used this ‘power’ have raked in the moolah too. So all you do is keep the ads coming, and wait for the child to change the “No” to “Yes”.

just for kids

“I love you Rasna,” cooed a cute moppet, and soon every child wanted to drink Rasna. But that was a long time ago when things were simpler and little kids played with little cute toys. Today, it’s the era of ‘Beyblades’. Anyone with a child in the age group of 4 to 14 years knows what I am talking about. Rasna has done it again. It has once again managed to hook its target audience. It has started India’s first Beyblade Championship. As the little ones imitate their favourite Beyblade characters (“Tyson” and “Ray”) and many more, the company is all set to count the money. As the Beyblades start spinning, so do fortunes, and Rasna and the kids shout in unison, “Three, two, one, ho ja shuru!!!” Even ICICI is not far behind Rasna. It started the “Young Stars” account. No marks for guessing their brand ambassadors – Tom & Jerry. They captured the hearts of generations of youngsters & today are capturing their wallets!

The charm of a child is irresistible and no one knows it better than a mother and a marketer... and of course, McDonald’s! From the ambience of their outlet, to their concept of “Happy Meals,” this intelligent firm has made sure that kids drag their parents to McDonald’s outlets every time they want to eat out. The 2 billion dollars that McDonald’s shells out every year sure seems to be effective. So the Indian version of McDonald’s – Nirula’s – is trying to catch up by offering free ice-creams to students who have excelled in their examinations. Novartis decided to go a step further with its best seller Calcium Sandoz. It went directly to schools in Ahmedabad and distributed Calcium Sandoz in doggy packs along with doggie eraser, scale and pencil. After all, it pays to catch them young.

We are the world; We are the children...

The future of mother earth rests on the tiny shoulders of young children. So does the onus of building market shares in today’s business era. Today, competitors are using these tiny people to fight it out with their competitors in the market place. Who would have thought that purchase decisions on products like cars, washing machines and washing powders would be decided by children! But that’s a fact. Today, children decide almost everything, and parents are too stressed and short of time to hold their ground. Today, children are more aware about products and brands available, than even their parents.

Today, those are kids who decide whether they want a stylish car, or a big car, or a fuel efficient one. So while Maruti Suzuki shows an irate father shouting, “Oye Chhote bas kar yaar,” to stop his child from driving his toy car all over the place, the smart Chhote chirps back, “Papa ki karan, petrol khatam hi nahin honda!” The father slaps his forehead in awe and appreciates the lad and calls him a champion. Hyundai Santro knows that the little girl who gives away all her piggy bank saving for a “maroon car” will have her way. So, while the whole house wishes for the black, it’s got to be the maroon which the loving “Chachu” Shah Rukh gets for his loving niece. “Hoga Har Sapna Sakaar” promises a Santro to all the little decision makers.

If that were not enough, it’s not just the colours, but the size of the car which is decided by these lilliputs. So, when the school girl says that Maruti Esteem is a big car, her father feels he’s done well in life and smiles. Not to be outsmarted,

Indica advocates, “If you can’t have it, snatch it.” So the little sweetheart runs away with the bigger car of another boy. After all, it’s only human to want more, and Indica gives more. Be it mileage or comfort or color or style, kids know it all. Marketers are waking up to this fact. So, Surf Excel did not hesitate to give up the hard working, thrifty Lalitaji in favour of the charming brother who fights with the puddle that made his sister cry. Sachin and Shah Rukh were unable to pull it off alone, and Britannia and Sunfeast have to use the charms of two little naughty boys to convince the kids to buy their biscuits. If you have to win a trophy, eat a Sunfeast biscuit. If you want to be naughty, you need the energy of Britannia Tiger. And if you have to outsmart the adults, have a Parle-G. It’s no more just star power, but kid power, which makes ads work today.

While for all these years Horlicks used to talk to mothers about nutritious value of their products, now its “Aipong, Opang, Jhapang” for the smart child who needs no one to convince him what’s good for him. The mother just stands and appreciates the choice her child makes. All these years Colgate had been the market leader with its famous “Ring of Confidence,” which kept the family and the company’s market share safe. When competitor Pepsodent came in, it talked directly to the child and promised him that his mother would allow him all the things which were not good for his teeth, because Pepsodent would fight away all the germs. It was not just the germs, but also now “Dhishum-Dhishum” for Colgate’s market share and it learnt its lesson well. It tried hurriedly to scramble back with the help of a tiny kid’s voice that said “Mera Colgate. Meri big Suraksha.” Kids are a force to reckon with – you can’t ignore them. It’s a fact that kids influence 43% of the brand purchase decisions. Advertisers are pulling out all steps to keep kids surrounded by advertisements. India’s top advertising spenders are those whose products are consumed predominantly by children. Nestle tops the charts, followed by Britannia and Cadbury.

The The New Movie-Goers

Back in 1977, little boys carried “Howdy Doody” lunch boxes to school, after watching “Star Wars.” No one could imagine back then the amount this industry would grow. We all know that the five “Star Wars” films grossed nearly $5.7 billion in box office sales worldwide. However, what skipped the attention of many was another stunning number. Toys and merchandise sales of the movie were a staggering 9 billion dollars. Add to this another $4.3 billion towards video games and DVD sales. Every hit movie spawns a whole new set of toys for children. Toy Story almost spawned a mini industry in Buzz Lightyear merchandise. Months before a Harry Potter film hits the theatres, the sale of its merchandise goes to dizzying heights. Harry Potter is so much of a craze that Bajaj Discover has used a look-alike to promote the sale of its bikes in India.

On the Indian turf too, “Koi Mil Gaya” captured the imagination of thousands of young children as they flocked to the movie hall with their parents and later bought “Jadoo” merchandise. Kids are so important today that movie makers are writing scripts and action directors are directing action scenes so that they can be converted into video games for children. It said that action sequences of Star Wars were tailor-made for video games. Be it Charlie Chaplin, Mickey Mouse, or Laurel & Hardy, all the movies which entertain kids were always very popular. However, George Lucas with his Star Wars showed the world how to build a fortune too! No wonder, instead of a pay rise, he was happy when 20th Century Fox gave him the merchandising and sequel rights of all the Star Wars films!


Hi-tech Boom

No time for parents to buy you a pet? Don’t worry children, all you need to do is log on to neopets.com, and own a virtual pet, all yours to love and to take care of in just a few seconds. This website is loaded with games full of opportunities for brands to tout their logos & ads. Today, this site has around 11 million users. Children prefer it to watching TV. The Neopia food shops sell Nestle sweets, Oreo Cookies et al to name a few. The Disney Theater link on this site shows cereal ads of General Mills. So, as children take care of their pets, they get familiar with various brands without even realizing it.

Postopia.com is another of those gaming sites where brands have linked their names to games so that children don’t forget them. We don’t need no education

Kids are glued to their TV sets. Most have one in their bedrooms. An average child sees 20,000 commercials every year. They are exposed to so much, so soon, that by 3 years, many are demanding products with specific brand names. It’s no surprise that children know more about Ronald McDonald than about their local heroes. Just when you thought you could turn off the TV and switch away your problems, you have Channel One. It offers a 12-minute news broadcast daily to more than seven million teens across American schools. Advertisers are ready to give their right arm to be a part of the commercial break that comes with this 12 minute news broadcast! Channel One does not hesitate to charge $195,000 for a 30 second ad. Where else would you get such a large captive audience!

Marketers are running helter-skelter to find ways to tap this burgeoning market. Kids surely are the new consumers. According to an estimate, 24% of the US population are kids, and the figure is estimated to remain stable till 2020. Clearly, marketers are finding newer ways to reach out to this huge market and communicate to them. So put on your Harry Potter glasses and start thinking-small, for honey, we just shrunk the consumers!

Copyright © : Rajita Chaudhuri and Planman Media.

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

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Larger than Life

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Can’t shut ‘em off with a TV remote, can’t flip ‘em away like a mag, can’t change their channel like in a radio...Billboards are the most radical medium for advertisements today

While Madonna cooed, “Don’t cry for me Argentina,” as she played the role of Evita Peron, many on the Indian roads banged their cars into each other as they gazed wide-eyed at the hoardings of Evita soap and gasped, “Who’s that girl?”

So while Madonna’s song notched up to number 2 on the Billboards, a different success story was up on the billboards in India. As Lisa Ray looked down at passers-by from the huge billboards advertising Godrej’s Evita soap, commuters couldn’t take their eyes off her and soon, everyone wanted to know all about her and the soap, making both of them popular overnight.

Clearly, billboards can create a lot of impact if handled properly. They have proved their effectiveness time and again. Be it in UK, where The Economist has been using them for over 14 years, or be it India where Amul has been using them for decades to promote their products.

BILLBOARDS ARE BACK

If the movie “Cars” has once again got the cash registers rolling for Disney-Pixar animation studios, then those are cars that have once again sparked off a huge interest in billboards and the outdoors as a medium of advertising. Billboards are fast becoming a medium irresistible to advertisers and media planners. Definitely, those are the super highways and high speed cars that are responsible for the comeback of good old fashioned outdoor advertising. More and more people are on the roads, making the ‘viewership’ of this medium larger and larger day by day. All this while, billboards and hoardings had been playing second fiddle to the king of media – Television. Now all of a sudden, there is a twist in the tale and outdoors has become a powerful tool to reach out to customers.

“Speak up: It’s in your DNA!”

Hoardings in Mumbai urged people to speak their mind up and also made them curious. People wondered and waited, “What was it all about?” It was the run-up to the launch of the Zee-Bhaskar newspaper named DNA (Daily News and Analysis), which used outdoor advertising almost exclusively for spreading its launch message across Mumbai. People started talking about it. So much so that the Times Group was tempted to copy the ad-campaign to promote their newspaper Maharashtra Times. While the original DNA hoardings showed faces of people with their mouths pasted over by grey tape and below that ran the tagline: “Speak up: It’s in your DNA,” the Maharashtra Times, in its newspaper pages, showed people peeling grey tapes off their mouth, and the tagline went like this: “Speak up, its in your DNA – Maharashtra Times.” Of course, the ads proved a little expensive for Times, as Zee immediately slapped a Rs.100 crore lawsuit. However, our point is proved – billboards work. Billboards are an excellent way to reach a large audience. No wonder Reliance Infocomm, Hutch, Tata Indicom are all fighting it out in the “open,” using outdoors to attract consumers.

When the New Zealand Listener Magazine wanted to attract young readers, it designed an innovative billboard campaign. Using the website www.i-think.co.nz, young readers were encouraged to sort out, arrange and place various news, events and issues under four heads, that is, topical, interesting, tedious or dated. Every week, the magazine showcased the results on billboards. The magazine realised how billboards were a vital medium to make this strategy work. Without doubt, innovation is the key to success, when it comes to outdoor advertising; and Unilever has done it again – this time out in the open – on the streets of New York City! It has made a “Dirty Clothes Bus” that has caught the attention of all. What’s this bus for? It’s an advertisement for a detergent. The caption on the bus reads, “How much can one small bottle clean?” and the bus itself is covered with dirty clothes. For the first time, someone got the desired stares with clothes on, than off!

London has a favorite jumping point for would-be suicide planners. Just opposite this point, a wise guy put up a hording which read, “Before you jump, give us a call.” It was actually an advertisement for a job site! Simply too good, or should I say simple and good? Yes, outdoors is a medium where you have to KISS your way into the hearts of consumers. Keep it short and simple, and it will rock! The outdoors is where all the action lies today. According to a survey done in US, 78% of advertisers thought that today, traditional television commercials had become less effective. In summary, everyone prefers taking their goods outdoors.

An artist, frustrated by the current American President’s administration, made a small painting, which apparently looked like George Bush’s face. But on close inspection, it was actually made of monkey heads in marshes. When the art gallery refused to display it, some anonymous donors picked it up and projected it on a giant billboard in Manhattan. They knew 400,000 car owners daily would see the painting projection and form their opinions about the futile war Bush is fighting in Iraq. The billboard was such a hit that bidding for the painting by the little known artist has already touched $4,000!

Billboards offer endless creative possibilities. No wonder, Coca-Cola is taking on Pepsi full throttle in the outdoors. It’s going all out to promote its new beverage Coca-Cola BlaK with its new slogan – “The Coke side of life”; and hoardings will be its primary medium. Not long before, Pepsi too went outdoors to woo people with a kick and a kiss. While Priyanka Chopra offered the kick of coffee, Kareena Kapoor promised the kiss of cola, as Pepsi launched its Pepsi Cafe Chino flavour. Buses were painted and dressed up and had these two beautiful girls promising a kick and a kiss to youngsters. They did arouse a lot of interest; however, it was more kick than kiss for Pepsi as the product’s taste did not go down well with consumers!

Even the traditional London cab has today turned into a very popular vehicle for outdoor promotion. It has become a medium for reaching mass audiences. New product launches, brand building exercises et al are all being done through taxis! Be it Coca-Cola, or Gillette, or Haagen Dazs, all have used taxis to “drive home” the message to customers.

BILLBOARDS ARE FUN

Technology has been largely responsible for the rebirth of this medium. Billboards are no more those wooden boards that took so long to paint and were so quick to fade. Today, you can download music, play games, watch videos, design your own sneakers, and even purchase them – all directly from the billboard.

In New York City’s Times Square, Walt Disney World has a billboard advertising its theme park. You can send a text message to the number displayed, and within seconds, you receive an SMS supporting your query, and even asking whether you would want to receive further promotional messages. In fact, one of the longest billboards in the world – 100 feet wide – belongs to Coca Cola. It’s placed in London’s Piccadilly Circus. Being amongst the largest is not its only claim to fame. The billboard astoundingly changes with the weather too. So if it’s rainy, the billboard displays rain drops; if it’s windy, it displays ripples; but more than this, if you wave at the billboard, most astoundingly, it waves back! Another product, Absolut Vodka, has rock star Lenny Kravitz on its Manhattan billboard, inviting passers by to turn on the Bluetooth connectivity on their mobiles to download a free four minute MP3 track, while they wait for the street light to turn green!

BILLBOARDS BUILD BRANDS

Supporting the shift, big advertisers and popular brand names are today putting their faith and money on billboards. The Independent used only posters for promoting its newspaper, and sales increased dramatically by 9%. British fashion label FCUK (French Connection United Kingdom) built its brand only with the help of billboards. When Smirnoff wanted to improve its sales in New Zealand, it used the word “OFF” in different innovative ways and plastered it on hoardings all over New Zealand. It used simple one-liners like, ‘Pressure OFF’, ‘Dance your ass OFF’, ‘The half day OFF’. The term “OFF” was from the Smirn”off” bottle, placed in such a way that only the “off” part was visible. So for any kind of an ‘off’, it had to be Smirnoff. Dramatically, the sales of the vodka increased by 35%.

When India wanted to attract tourists, it took its hoardings of “Incredible India” straight into Times Square, New York. They wanted to showcase India as the ideal destination for Yoga, Ayurveda etc., but wanted those tourists who were willing to pay. For this, they had to make India look irresistible. The most effective and fastest way was through billboards.

BILLBOARDS ARE SPECIAL

The rules of the game have changed. It’s a whole new world out there, full of innovations and limitless possibilities. Billboards are far from boring. They can be so much fun today and so creative. The medium itself is so unique. Unlike television ads, one cannot zap billboards into oblivion with one’s remote; unlike in a magazine, one cannot turn pages and miss the ad; unlike radio, one cannot turn a billboard off! If you are on the road, you are bound to notice it. Whether it creates an impact or not depends on its creativity. The billboard is a huge canvass, which gives the company a chance to make a brand look larger than life. The billboard gives that power in your hands. The best part is, all this comes at a fraction of cost. Billboards cost three times less than newspapers, half as much as radio, and seven times less than television. Outdoors, without doubt, is one of the most powerful marketing tools.

BILLBOARDS GO TO FIFA

While you are busy rooting for your favourite team during the FIFA World Cup, don’t forget the billboards lined up alongside the stadium. They are a great way to promote brands and products. After all, all of them did shell out $45 million to $50 million to be present inside the football grounds. Interestingly, the city of Frankfurt is turning itself into a huge billboard for FIFA. The road from the Munich airport to the World Cup stadium has a huge cut-out of the German national football team goalkeeper Oliver Kahn. The city is using billboards to project itself as a hospitable, sport-loving, cosmopolitan city. Be it Leipzig or Munich or Hamburg, all of them together are posting their passions on billboards, welcoming the players, the tourists and the game. Those are the billboards that have turned Germany into a large playground and taken the football fever to dizzying heights. Billboards have been building up the tempo much before the advent of the Cup. Nike was seen rooting for the underdog USA with the help of a giant billboard on 7th Avenue in New York City. First, a hoarding went up which read, “The World No Longer Wants To Play Us.” Then the 70 foot billboard was changed to “BEWARE,” showing the American footballers ready to take on the match. The message was designed to give soccer fans a rallying cry. Even Coca-Cola had dedicated two of its billboards inside the stadium to its fans. Fans of the teams playing a particular match were allowed to create art works – on the billboards – that would convey a sense of national pride and enthusiasm. What was earlier reserved for the sponsor’s name and logo, had now been changed into a work of art by Coca-Cola for the 2006 World Cup. The dazzling billboards, the vibrant colors, the numerous messages emblazoned on numerous billboards – these posters changed the whole environment of the country.

Indisputably, and undeniably, when you want to make it large, you’ve got to take your message to the big stage – the outdoors. If you want to create an impact, beat competitors, you’ve got to make it larger than life!

Copyright © : Rajita Chaudhuri and Planman Media.

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

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