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Showing posts from April, 2010

FDI in Retail: Opportunity or Threat

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Recently Commerce and Industry ministry proposed a proposal to government for allowing FDI in Retail sector. The industry is getting hot after this proposal is being made. Retail sector is a sunrise sector with high growth potential. Till now India comprises 5%organised and remaining unorganized sector and expected to reach 10% by 2012. The factor that drives this growth is rise in Demographic profile, consumers aspirations, growing income of middle class family. Coming to the point that Is that good for India or not. The answer is yes because by allowing FDI in retail sector our economic condition will be strong and many more advantages along with disadvantages. Currently government has allowed 51% FDI in single brand Retaling and 100% in cash and carry business. Presently big Retailer are operating in this cash and carry business. For instance Walmart, Tesco to joint venture with different Indian companies. Why FDI in Retail - As in first paragraph I have written that since 2006 gove

Logan: Good product but Bad luck

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Logan is a sedan segment car from Mahindra Renault (JV) company. In 2007 Logan has launched in Indian market. Renault is a French based car makers entered into India with the help of Mahindra & Mahindra. M&M is providing sales and distribution channel to Renault as far as agreement is concern. Unfortunately, Logan is messing up in market due to bad marketing strategy with excellent product.This is the case of Good product struggling in market with bad strategy. Fault in strategy - The very first one is they entered into Indian market with M&M and according to joint venture M&M will support them for sales and distribution. Second one is at the same time Renault announced that they will do JV with Bajaj for small car segments. Now being a management student I can say and its very obvious that If you are operating in same segment with two different player you cannot success because it can create dispute between two company. By the way same thing happening with these compan

Rural India: Think Out of the Box

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Mostly people have misconception about Rural India means "Roti Kapda aur Makan". I will say far more than this concept. Now mostly marketers and MNC's are understanding the potential of this market. According to data Rural India is same as Urban area at some extent, company like Dabur, Mahindra & Mahindra, Procter & Gamble to some extent HUL is getting more from this market. In this post I will analyse the point and display some fact about rural India. Income Growth - Past five years marketers and Indian economy have seen growth rate and per capita income of Rural market. According to data the per capita income growth rate of rural India and urban India has grown at the same rate. How can you say that there is no potential in this market. Population - If we talk about population of rural India which is much more then Urban India. More than of 72% population lived in rural India. so, You can see the market here. Demographic segmentation - According to "we are

Telecommunication market: flooding by new entrants

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Indian market is going to flood by various new telecommunication operator. Indian telecommunication market consists of 50000 crore. In last few years marketer has seen that each month atleast one operator came in India. The main reason could be Indian telecommunication market is growing very fastly even in the rural area mostly people have their own mobile handsets. New entrants - Main thing here is that who are the players coming in India and there are also some players which is from the Indian. when we talk about new entrants name you will be surprise that how and why they entering in this sector because they are coming from different background. Now its very clear that their main motto is get diversified, cover more market and of course profit. Following are the name of few new entrants- 1. Luminous - Basically this company is enterning with wynn telecom. Luminous is dealing with power and energy saving industries. Now you can understand such a drastic diversification. As far as c

Retailing Concept: Store within store

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This is a new concept which is running in retailing business called "Store-within-Store" . This concept is all about many retailer can operate in same retail mall. In other words you can say store owner will give permit to his competitor/retailer to operate in this store on the basis of agreement.Recently Retail tycoon Kishore Biyani announced that they will work on this concept. How they will work - According to Central mall owned Kishore biyani who recently told that now they will operate in this system. It is like this any retailer can operate in central mall. Either it is Reliance group or Raheja group. If you will enter in central mall you can find many retailers who is competitor of Biyani group is operating in that store. Who will get benefits - Of course, Indian consumer will get benefit because they are getting everything from one place along with different brands. Retailers will have different choice which can satisfied consumer need. If you will go in that store

Choice Modelling: New Forecasting or Marketing mix model

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In this era marketing research is going to exploit the market. As you can understand importance of marketing research how much is it. The very first question arises here is why we need to do marketing research. I will try to clear this point by using one example and entire marketing comes under this. If an existing company wants to operate in different place they will use market research for knowing growth and failure rate of that market. Second If they wants to launch new product they will use marketing research. Fortunately I would say whatever you will try to do(either it is knowledge about moves of competitor, consumers, and more) you have to go through marketing research. so, see the importance and dynamics of market research. Coming to point the term called "choice modelling" in marketing research is going to replace many concepts and tools very soon. This method has been developed by Nobel prize holder Daniel Mc Fadden . First I must tell you about what is this method

Banned: 10 Television commercials

In this post I will write and give you some links of best"Banned commercials" ads. As far as my understanding is concern these types of ads are totally unethical. I cannot understand how the managers and Management are taking decision and giving permission for these types of stuff. As I know the very first reason could be publicity about product and company and others may be. You cannot watch this types of advertisement with your family. let's click on the following link and watch the ad. 1. Microsoft XP http://www.youtube.com/watch?v=MATGJBZl1Lg 2. Amul macho http://www.youtube.com/watch?v=UPOqDhOuYl0 3.Volkswagen http://www.youtube.com/watch?v=Ow0a06gsiF4 4.Levi's http://www.youtube.com/watch?v=CSG807d3P-U 5.Pepsi http://www.youtube.com/watch?v=Y6dFg0fE8T0 6.7up http://www.youtube.com/watch?v=EhT2m0gMYHw 7.Mastercard http://www.youtube.com/watch?v=AGnaFq_7wJM 8.Zazoo condoms http://www.youtube.com/watch?v=nojWJ6-XmeQ 9.Peugeot206 http://www.youtube.com/watch?v=C8bSj

Rin Vs Tide: Second ad war

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This year HUL is going towards Ad war campaign.In first week of march when HUL launched a tvc ad where they were directly challenging to his competitor P&G. The ad was particulary for their prestigious brand called Rin from HUL and Tide from P&G. In this ad Rin was directly challenging to his competitor Tide. After that when P&G took the help of court then HUL had to discontinued his ad this was 1st round of ad war between Rin and Tide. Again, recently HUL has launched same types of ad war which you can call 2nd ad war but in this campaign Unfortunatly Rin is not pointing out Tide. In this post I will give you overview of both war and analyse also. 1st round of War - It is like this when last month HUL launched tvc ad where they were targeting to P&G. In that particular ad HUL was conveying to consumer that Rin is better than Tide. watch the ad-http://www.youtube.com/watch?v=aQQc4YlNnkI. Ad was like this two women was waiting at bus stop and looking for her child who wi

Big Bazaar: Could not control overcrowd

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This is the story of year 2006 when "sabse sasta din" promotion scheme has been started by leader in retailing called as Big bazaar. The time Big bazaar was not able to handle unpredictable crowd of consumers, they faced many challenges to control this overcrowd of Indian consumers However at the same time they learned more from the market and got opportunity. In this post I will explain each and every point of that memorable day of Big bazaar. I must tell if you want to know more about story of Future group and Indian consumers you should read the book called"It happened in India" written by Kishore biyani and Dipayan baishya. Concept of sabse sasta din - This concept was idea of Mr. kishore biyani owner of Future group. Question here arises is why they had chosen 26 January for this promotion scheme. Main reason was according to KB (who knowns the pulse of Indian consumer) that because at this day people used to stay at home due to holiday of Republic day. so, th

Toyota: A Case of Overconfident

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Toyota a Japanese automobile company and world's largest automobile company in terms of sales. Now a days company is facing crisis this is due to recall of their vehicles(Toyota Prius) which has some sort of problem in brake and accelarater. Why this is a case of overconfident because when company got news about problem in few cars. They were fully confident that they can handle this problem effectively but fact is not like this. Now they are going to become victim of overconfident. According to company's philosophy "each problem provides opportunity for improvement". That's what company is facing problem. According to analysts the main reason for this recall is higher growing rate and other factors as well. so, being a company who believe in Just-in-time facilities how they are facing this types of problems. Now when Toyota started repairing millions of defected car they were not able to handle it. The very first and recent reason is Arrogance which the company h

Future group Vs Wal-mart: Kisme kitna hai Dum

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Once India was called sone ki chidiya(Golden bird) for its prosperity, intellectual, culture. so, we are going to make it happen. Here two questions arises first one is"Does wal-mart succeed in India" and second one is" Can Future Group compete with wal-mart". First of all I will give some sort of introduction about both the Companies. Future Group - Future group is a India's largest retailers led by Kishore biyani. company has total 22 retailing formats ex- Big bazaar, Pantaloon, Brand factory, star, Depot, Blue sky, Future insurance, Future capital and many more............! Charming face of retail Kishore biyani know the pulse of Indian consumers, that's what the book called "It happened in India" written by Mr. Biyani get sold 100000 copywhich is highest number in any business book. Big bazaar has core competency in visual merchandising and product portfolio. they have presence in mostly retail businesses. Wal-mart - American based retailer ope