‘Delighting’ the customer

IIPM MANAGEMENT INSTITUTE   
Then, the ‘True Value’ programme launched by Maruti opened up a new market for second- hand cars, and provided maximum benefit to the car owners as well. The ‘Loyalty bonus’ programme, too, had offered major discounts on purchase (and exchange of existing cars with another Maruti car). 

Finally, customer retention is very important for Maruti as repeat purchases from existing customers are frequent (heard about frequent upgrades, from a Maruti 800 to an Esteem and then on to a Vitara?). So keep your customers happy, latch on to them, and make your money. Maruti has shown us the way! 

For Complete IIPM Article, Click on IIPM Article 

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

Tata Indica More car per car

IIPM PUBLICATION     

“Tata Indica’s launch dcampaign was aimed at repositioning the ubiquitous Maruti 800 as an inadequate car; and position Indica as the ‘More Car’,” shrugs M. G. Parameswaran, Executive Director & CEO-Mumbai, FCB-ULKA, the agency that has handles the Indica account. The “more car per car” campaigns struck a chord with the customer and the positioning stuck. Interestingly, in an age where TV is king, Indica depended only on the print media to deliver the punch. As Parameswaran points out: “Given the budget, we had to choose between spending some amount in press and some amount in TV. But our objective was to be seen as a dominant player, offering a really superior product; a ‘More’ Car.”

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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Making sense of business

IIPM MANAGEMENT INSTITUTE 

How good is
India at doing business? Well, there’s good news and there’s bad news. First, the bad news. According to a report issued by the International Finance Corporation (IFC), the private equity arm of the World Bank, titled the annual, ‘The Doing Business Report’, which ranks 175 countries on the basis of the business friendliness of their policies, India lags at an abysmal 134th position (last year, it was ranked 138th, so there’s been a marginal improvement, but certainly not good enough for an emerging power!). Consider this: in South Asia, Pakistan has a far better rank, being placed at 74, while
Bangladesh occupies 88th position. China is ranked at 93rd position (not too good either, but better than
India!). 

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

A spectacular boom is pushing aviation to new heights

IIPM PUBLICATION 
‘Granting wings of flight to the ordinary Indian!’ – we hear claps now when some airliners announce this statement; half-a-decade back, this expression would have earned nothing but slaps! And those were the days when the Indian aviation industry suffered from the ‘Maharajaha syndrome’ and hence was perceived to be an elitist undertaking. And how do we know that the sector is growing? Analytically, the number of passengers grew at 12.4% during 2003-04, which then accelerated to 24% during 2004-05, and finally touched 27% during 2005-06! As another numerical proof, the total domestic passenger traffic handled at the
Delhi airport has more than doubled from 4.98 million during 2000-01 to 10.49 million during 2005-06; and the total cargo handled at the capital’s domestic airport too has increased by 37% from 173,601 tonnes during 2000-01 to 237,923 tonnes during 2005-06! 

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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POWERFUL TENTACLES EMERGE

IIPM MANAGEMENT INSTITUTE 
Search engines are passé. The ever-changing beast – the internet – has sprouted a new set of tentacles, bigger and thicker, pulsating with the sheer strength of the traffic it controls. Social networking, through blogs, wiki’s and sites dedicated to building communities is impacting the brick and mortar world of business. Sure, pop singers Janet Jackson & Britney Spears are the top search terms on most search engines, but take a look at this – results from Wikipedia top a number of corporation related searches. A simple Google search for Infosys, Ranbaxy or Birla all throw up Wikipedia entries. Wikipedia is an internet encyclopedia created and edited by everyone. A closeknit community of administrators has evolved rules to govern the system, which although discredited several times, wields enormous power. Further, wiki’s as a concept are taking off – online collaboration means colleagues in New York, Moscow and Sydney can edit a presentation or piece of soft ware code together, at times that are convenient to them. 

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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The new mantra: pay less, enjoy more

IIPM PUBLICATION
Alternative fuel is the latest buzzword with the auto companies, as various companies are launching the CNG and LPG versions of their car models. The most recent to join the bandwagon is General Motors. The company has recently launched the CNG version of its Chevrolet Optra at a price tag of Rs.810,000. The CNG version will be first made available to cities which have CNG stations, like Delhi, Mumbai and Gujarat. The GM approved CNG Kit would be fitted in the Optra 1.6 at all GM dealerships. The company has also given the present Optra owners the choice of upgrading to CNG while retaining the original warranty coverage.  

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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Kinetic : The Ingredients For The Company’s Success

IIPM MANAGEMENT INSTITUTE
The lady reveals the ingredients for the company’s success, “I think it is the energy, a lot of product innovation and a commitment to creating products that genuinely bond with the Indian customer.” Recently, Kinetic Motor has struck an alliance with Italjet – an Italian company. Through this deal, the company has won the manufacturing and distribution rights of a highly advanced and innovative range of seven vehicles in
India. Kinetic has very recently launched ‘Blaze’ (165cc and the first of the seven vehicle series), one of the
India’s most desirable motorcycles. Sulajja divulges, “Taking the legacy forward, we have just launched
India’s first moto-scooter. What is interesting is that scooters are usually for the family which is a little boring, while if you want performance, then you go for a bike. Here we are launching a bike that is very powerful, very stylish and it’s a new category altogether.”  

For Complete IIPM Article, Click on IIPM Article 

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

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M&M’s diversification model is moving on in the right direction

IIPM PUBLICATION
States Urmil Negandhi, auto analyst, Parag Parikh Financial Advisory Services Ltd., “M&M is diversifying its automobile portfolio from predominantly Utility Vehicles and Tractors to cars, two-wheelers, M&HCV, buses. With two JVs with world-famous ‘Renault’ for launch of Logan in upper B-segment by H1 FY07, and another with ITEC for M&HCVs, the company is successfully de-risking its business model. Also, M&M has already finalised its two-wheeler design.” Furthermore, the company is also working on alternative fuel technology. A hybrid Scorpio and electric three-wheelers are some other initiatives being triggered by M&M. 

Diversification still remains the key for M&M’s global expansion plan and to achieve its hard-line target of billion dollar revenues by 2010. With a war chest of $500 million, M&M is also reportedly gearing up for an acquisition in the
US in the auto engineering field. It is also hunting for a tractor company in China.

For Complete IIPM Article, Click on IIPM Article 

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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Connecting people is tougher than you think

IIPM MANAGEMENT INSTITUTENokia
With spellbinding $2.7 billion sales in India, this Finnish giant, and erstwhile wood logging corporation, sells more handsets every month than the population of its motherland. And it perhaps has a lesson or two to teach its Indian counterparts. With $42.4 billion annual global sales, there is no dearth of capital needed for huge investments for this multinational; but what stands out is the freshness that it exudes in all its plans. Nokia set up the first handset manufacturing plant in India among a host of other handset vendors, an affirmation of its belief in the enterprise spirit. With a commanding 78.8% of the Indian handset market – and this despite 40% of its sales being in the costly business phones segment – Nokia taught to the world that innovative products can make converts out of even price sensitive Indians! And one hasn’t even started talking about its growth in the Indian market (of 47.7%), which has outdone even the much-hyped Chinese market (27%)! Incredible – that’s the word to describe the mind-boggling performance from this Herculean giant.

Having been criticised for not having innovated a product that could compete with Apple’s iPod, Nokia is moving much ahead, tying up with cable companies to introduce products with which consumers will be able to one day watch live television on their cell phones… We were talking about the innovators’ club! The post of one founding member is taken…

For Complete IIPM Article, Click on IIPM Article 

Source : IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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