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Showing posts from March, 2010

Zain deal: Bharti Airtel or Bsnl

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Zain Mobile communication, Kuwait based mobile operator has been acquired(Not entire only African based assets) by India's no.1 mobile operator Sunil mittal led Bharti Airtel on last week march 2010. The deal has been finalized,total amout is $10.7 billions. Sunil mittal acquired this company in very sophisticated manner within one and half month. Talking about Zain,which has present in 23 countries(Africa 15 and rest are in Middles east). After acquiring this company Bharti became the world's fifth largest mobile operator. Now, Bharti has customer database of 179 millions with presence in 18 countries( India, Sri Lanka Bangladesh and Africa's 15 countries). Bharti has opportunity for operating in this emerging market with its same brand name called"Airtel". Talking about Zain it had customer database of 42 millions and presence in 15 countries of Africa and 8 countries of Middle east. Bharti is going to pay $8.3 billion and remaining amount they will take from ba

New Product launch

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In this post I will talk about new product which is going to launch or has been launched recently. The very first one is SACH toothpaste from my favorite company. why it is favorite because this company had helped me for doing project on Retail marketing. It has launched recently under private label brand of Big Bazaar. For this product Master blaster Sachin Tendulkar is going to endorse. Second, Star bazaar which has support of world's third largest retailer Tesco is going to launch 58 private label brand. Products will comprises organic biscuits to fruit infusion shampoo . Third one is Crest toothpaste owned by P&G which is going to launch very soon. According to news this brand was about to launch in 2005 but due to some internal reason this brand could not launched. let's see what will happened this time. Coming to the Automobile segments Mercedes launched new version of car called GL 350 CDI . According to Mumbai showroom source price of this car is 63.57 lakhs. I

New USA consumer:Recession changed the habit

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United state of America which has estimated population for (2010) 30,89,57000 and playing in dollar with power now a day trying to overcome from recession. In this post particularly I will talk about "How recession has changed consumer behavior of America. A country where mostly people were totally brand conscious and habitual of luxuries products. Pre-Recession consumer - If we compare pre-recession consumer behavior of this country and post-recession that would be totally different. According to survey, data say Initially 61 percents US consumers which had credit card spending more than $1000. 41 percents consumers were spending more than they earned. They were totally conscious towards premium and luxury product. During recession - Let's talk what they were doing when entire country were suffering from recession. If we look at data you will believe that how this paradigm shift is happening. Mostly people stopped buying which they can't eat. I will give you one example i

Hypercity: Retail outlet In large format

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Hypercity is one of the retail chain of K Raheja group. K Raheja group has diverse range of businesses comprises Real estate, Hospitality, Retail chain. this group has retail like Shoppers shop, Crossword and others. It has been established in 2006. this store will give International touch to Indian consumers because area of store is 1,50,000 sq. feet. Shoppers stop entered furnishing business through Home stop and retailing through Hypercity. this concept of retail format of Hypercity is designed by UK's leading retailer Argos. On 25 march when they opened in Bangalore I visited store along with my friends. According to our observation layout is very big so, confidently I can say they will give International experience of shopping. According to our observation being a retailer in India it is very big and consumers will face difficulties,when they will go for Impulse purchase and any other small items. Till now they are seven (Mumbai-2, Thane-1, Jaipur-1,Amritsar-1, Hyderabad-1 Ban

Dabbawalas Network:Promoting for New product launch

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I would say yes, traditional promotion and ditribution tool does not means old version which is not working now aday. If we talk about Mumbai Dabbawalas still they are using tradional way to distribute 200000 tiffins everyday through approximetaly 5000 vendors. see the entire chain of this dabbawalas they do not has any modern computer technology but still they pick and deliver all tiffins to right people at right place to right time. How they do, the reason is they uses color coding system for this and make it happen. Coming to point mostly company are using this channel for promoting and building awareness about their brand. Recently Perfetti van melle launched MANGOFILLZ under band extension of Alpenliebe. They are going to use traditional promotional scheme which is dabbawalas imense network because they has reach of 200000 households. This types of networks uses in launching of new brand. Microsoft also used this scheme to promote their product called "asli PC". Relaince

Figo: A compact car launched in India

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Ford which is American based Automotive company recently launched compact(small) car in India. As I had earlier posted that in India small car segments is going to give very tough competition within the segments and outside as well. Name of the car is"FIGO". This car has made using 90 percents local components even local color specially for Indian market. Target group of this car is newly married couple and ambitious professional. If we talk about player in this extremely competitive market is followings: well established Maruti Suzuki and Hyundai and also Nano from Tata motors, Beat from General motors. new entrants are Volkswagen, Honda, Toyota, Fiat and Renault& Nissan. this car is in two version diesel and petrol as well. Price of this car is 3.49 lac for petrol with mileage of 15/km where as 4.47 lac for diesel with mileage of 20/km. Figo is totally made for Indian market with using local components. Positioning of car is "Car for Sandeep", which means pers

Coming soon: Ford Figo Staretegy in India

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Dear readers, Very soon I will write about marketing strategy of Ford FIGO (small car) for Indian market. please wait, two days more.................... Exam is going on.

King of Internet: Facebook overtook Google

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There is clear indication is according to Hit wise intelligence that last 13th march Facebook took over No. 1 website Google. According to report last week Facebook surpasses Google by over 0.4% market share is US market. Data says last week US market share of Facebook was 7.07% where as Google was 7.03%. Facebook is growing aggressively in networking sites. there are also some news about that Buzz is going to eat market share of Orkut. now this news is going to revise the advertisement policy of many companies because now mostly company will advertise on Facebook. Data says people are now spending mostly time of Facebook rather than Google. Dear readers, sorry for inconvenient nows day my final exam is on head. so, I am totally busy for three days. As soon as exam will over again I will continue with you along with your MARKETING FACT.

Smallketing: Marketing of small product

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This is new concept of marketing called"Smallketing", where various companies are doing business or trying to do. let's see what is mainly this concept is focusing on marketing of small products it could be car, laptops, mobiles, garments, real estate, consumer durables, motors and many mare.... this concept can works in two ways they are following- 1. For BOP(bottom of pyramid) segments - If we talk about small cars, beverages and cold drinks, motors. let's see how it work In our country mostly consumer belongs from this segments and they are totally aspired. company which understand value of this customer can win this segments. we have many examples of this Tata nano, Tata starbus, Small coke, alcohal in small pack, chota refrigerator and FMCG products with small packaging. whatever example I have given here they all are winning or about to win in this segment. Thanks to Prof. C.K.Prahalad who bought concept "Fortune at the bottom of the pyramid". so, now

New age of Japanese consumer

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After decades there has been drastic changed in Japanese consumers. Now this is very crucial time for marketers who were operating in Europe, US,Japan and other countries because behave of consumer is changing in these countries. so, company cannot find difference between Indian consumers and these country's consumer because they all are becoming value conscious. coming to the point what change has been occured over a period of time in Japanese consumers. 1. spend money to save time Vs spend time to save money - Initially Japanese consumers were spending more money for saving his/her time but now, they want to spend time for saving of money. 2. Drastic increase in sales of private label brands - decades before they had more money and they were willing to pay for good quality product at high price but now, According to recent survey done by My voice Internet survey says sales of private label has increased by 4 to 20 percents. they are seeking value for money like Indian consumers

Know how: Walmart low price strategy

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Walmart world's largest U.S based retailer is providing lowest price product either it is fmcg or any others. the very first reason is amazing supply chain management,tough negotiator and highest spending on Information technology. Details are followings- 1. Tough negotiator - when they purchase any materials from vendors they make sure that no one sell cheaper and better than this,only than they finalize deal. there negotiator is master in negotiation with vendors or manufacturers. 2. Bulk purchasing - very second reason is they purchase in Bulk because they believe in high volume with low margin. let's see how they purchase items If a manufacturer produce product which cost of production(exclude sales&marketing) is 10 lac in one year and company spend 5 lac for sales&marketing, then walmart will say please give this product to me @12 lac direct from manufacturer plant. so, there is no harm for company or walmart because company is getting direct profit of 3 lac and wa

Does Negative Publicity Work ????????

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Definitely it works, I have seen lots of negative publicity where it worked very much. how company gains from this types of publicity. what happened when people get news/rumors about anything they want to try at least once because they may be or not have tried such product or services before so, he is totally eager do know about rumor that is it true or not. his main motto is to prove that it is wrong or right In that way company get benefited because If product/service is really bad then by way of trying company can Increases volumes or popularity but if it is good then absolutely it will gain. I have few example of negative publicity- 1. KURKURE CONTAINS PLASTIC- this was rumor in market at that time people wanted to try at least once for sake of purchase. If any customer who did not take kurkure regularly they also purchased because they wanted to prove via burning of kurkure but at end It comes false that KURKURE DOES NOT CONTAINS PLASTIC. 2.It work very well in Bollywood industry

Why not Business in: BIHAR

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Initially positioning of Bihar was "CRIME" but now days it has been changed repositioning of Bihar is "MIRACLE GROWTH". The question arises here how and why it happened reason is like this thanks to Honorable chief minister of Nitish kumar who was giving speech in gandhi maidan patna that if I do not come true on my promise please hang me in this ground in front of people of Bihar. As I think really state is going to way of changing but this is miracle changing. According to recent data growth rate of Bihar is 11.03 second after Gujrat in India. why it is so because cosumption pattern is changing in state. now people do not have fear of crime this is due to tight administration of Government. According to INTERNATIONAL FINANCE COMMISSION title of "Doing business in India 2009" they has rated Bihar second position after New Delhi. why it is so because starting business in Bihar is less expensive. Coming to point of ownership of consumer durable in urban Ind

Concept of old to new version Car

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This is very popular concept which work all over the world. As far as my understanding is concern mostly Automobile company is doing this. There could be two reason one is consumer can be irritated from same product using more time and others company can make more profit and brand Image by Introducing new one with customer satisfaction. We cannot say it work all the time because these days consumers are tech-savvy and aware about trends of market. Having said that If company has clear target group with clear positioning along with good strategy they can win. I have few example of these concept. OLD VERSION to NEW VERSION 1. Maruti Versa to Maruti Eeco 2. Toyota Kijang to Toyota Qualis 3. Maruti Zen to Maruti Estilo These are the example of this concept right now I am forgetting this I had some more exa

Private label: category killing

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The concept of private label brand is peaking pace in retail industries. If you are in chennai than it is very difficult to find paste of mustard(masala of fish). India's largest retailer future group some year ago introduced this paste called KASUNDI but you can find this paste where there is popularity of fish quisine like-west bengal. Coming to the point that why retailer are keeping this private label as I know there is two reason first is highest profit margin and another is category killing. Mostly retailer are doing this business for popularity of his brand and for higher margin. Big bazar has own brand in apparels like blazor of KNIGHTHOOD. which is very less price with discount it cost 600 only. Private label brand are available in less price with somewhere less quality. Recently I visited star bazar part of Tata enterprises. when I was purchasing FMCG product at ground floor got suprised. Mostly branded product were assorted with private label with same packaging. this is

Retailing: Moving towards cash and carry

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I became very happy when two days ago I was reading very nice article published in afaqs.com. the article was all about how retailers wants to move towards cash and carry(wholesale). recently our group was doing project on how big bazaar can sustain when world's largest retailer will come in India. At that time our group member has suggested that big bazaar should tie-up with small kiranawalas and vendors then we can convert these competitor into customer. In another way presently these are our competitor but when we convert these then they can become our customer.so, moral of this strategy is "kill two birds with one stone". secondly we had also suggested that for tapping this company should partly divide store in two ways one for daily customers and other for vendors/kiranawala who purchase in bulk. by doing this here is also same story apply, one side we are increasing sales volume and other side facilitating more customer services in terms of queue at cash counter. w

Nielsen Study: Indian are Ready to Pay...........

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The Nielsen company has recently conducted survey among 27000 respondents across 54 countries including India. the objective of research was that, Does consumers want to pay for online books, music, TV shows and games? From India about 70 percents of consumers are ready to pay for these online services if they have right to download and share within their friends and relatives. 63 percents respondents said that they will pay for online if payment system is easy.data is like this who are willing to pay- for books 50 percents, for music 47 percents, for magazines 47 percents, for TV shows 46 percents, for movies 45 percents, for games 44 percents where as there are only 38 percents consumers who is willing to pay for online newspaper. In case of blog 70 percents respondents said they are not willing to pay for access blogs on Internet. consumers also showed that they are unwilling to pay for online radio and prodcast. after analyzing the research company found that if content is related

Recalling: Toyota and Maruti Suzuki

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The recent recall of A-star by Maruti Suzuki to rectify defects in fuel tank, the largest recall in Indian automobile industry. now , question here arises, does this defect going to effect the brand image of company? company has recalled 1 lacs A-star cars in this march. As I understand and also there is views of marketers and auto experts say that if there is emotion attach with consumers then company can win the heart of consumers. just relate this problem with human relation. If same situation happened with anyone of our friends and there is emotional attachment than friends forgives us for my first mistakes.In the same way company is going to win the confidence of consumers. similar condition apply with consumers and brands. now same thing is happening with toyota prius model. toyota has recalled more than nine millions car worldwide. In this brand there is defects in accelerater and brake. this situation is very crucial for company because there is fully rumor in the market that h

Qualis miracle

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This was the only vehicle which tested in indian market with out dated model. qualis was mpv segment of toyota launched in India in 2000. this was old version of toyota kijang of Indonesia, toyota launched this car in India for testing of marketing because it was first product of toyota in India. toyota launched this car after doing too much research but they were confident about launching of qualis with success. As I understand there could be two reason for failing of qualis one is its outdated model where Indian consumer were aware about this global trends and another was not looking good. qualis was not able to attract individual consumer however they attract the taxi owner with its space and comfort. at that time qualis has tough competition from market leader sumo in that segment, thanks to taxi owner who made it somewhere successful. when toyota was seeing future of qualis they planned to phase out it from Indian market. But Miracle comes here because when toyota announced phase

New age of Indian Consumer

Hii, everyone from now onwards meself lalit choudhary start writting blog on various topic of marketing. today I am going to start with something new which is"new age of Indian consumer". If you will see India at global point of view or local it is very complex market along with same types of consumer but it is very interesting according to study India have60% young consumer(less than 30 years). Indian consumer want good quality product at low price. Is it possible????? Of course yes, lots of company are operating in this procces. example-Big bazaar, Wal-mart etc. Intially whichever company had belief that we can easily operate in India now is not like this because if you see when Levi strauss launched in India the price of first jeans was 3000. Indian consumer did not accept it at the end he had minimize price at affordable price. then see now growth rate of this company. new age of consumer is totaly related with social networking sites from where they take all infiramtio