Premium chocolates to drive confectionery growth

Premium chocolates and health cereal bars are set to make post-dinner convers­ations more enjo­ya­ble.
A gr­owing propensity to co­nsu­me these items will act as a growth driver for the Indian confectionery market, says a report by consumer market analyst Datamonitor.

The Indian confectione­ry market was ranked 25th globally in value terms in 2009. It grew at a compou­nded annual rate of 10.5 per cent during 2004–09, placing it among the fastest growing confectionery markets. By 2014, it is expected that India would be in the 19th position, the report said.

“Higher disposable inco­me and the resultant higher purchasing power will be instrumental in the rising value and volume growth of the confectionery market in India,” said Gaurav March­anda, author of the latest report, Market Insights: Co­nfectionery in India, relea­sed by the company.

“With the premiumisation tre­nd on the rise, categories like cho­colates and cereal bars are expected to gain sales, while the market is set to grow at an even faster rate of over 12 per cent during 2009–14,” said Marchanda.

But there could be obstacles in­hibiting growth. “Ad­ded strains on household budgets due to high fo­od inflation in India will indire­ctly place pressure on the confe­ctione­ry market, as di­scretionary spend­ing on co­mfort food items diminis­hes,” said Marchanda.

The price of main ingredients like su­gar and cocoa be­ans is on the rise, which is likely to exert pressure on the profit ma­rgins of manufacturers. “Higher su­gar prices directly impact input co­sts of low-value sugar confection­ery products, which in India tend to have lower price elasticity,” he said. On the other hand, hea­lth consciousness is a trend that has certainly caught the attention of manufacturers. “New product laun­ches are increasingly moving toward a healthier positioning. The health consc­iousness trend significantly impacts sales of cereal bars,” the report pointed out.

As a result, cereal bars are currently the fastest growing category in the confectionery market. “Such products have a longer shelf-life than traditional sweets, and are also accompanied by well-targeted marketing campaigns and product positioning. This is leading to a shift from gifting dried fruits and sweets to chocolates,” the report said. The confectionery market is highly consolidated, with the top five manufacturers accounting for a major share.


DEEPAK KUMAR
PGDM 2 ND SEM

Vadilal industries whips up expansion plans

Vadilal Industries, one of the leading ice-creams makers in the country, is working on increasing its all-India market share from 20 per cent now to 24 per cent by entering newer markets like Haryana, UP, Bihar, Jharkhand among others. The company is also targeting a sales growth of 40 per cent in 2011-12.

The company's presence has been mostly in Gujarat, where it enjoys a 40 per cent market share. Vadilal now plans to increase the number of distributors from 550 at present to 750 in the coming year, besides adding around 40 Happinezz parlours across the country, taking the number up to 170. Vadilal currently has around 100 Happinezz parlours in Gujarat alone

Devanshu Gandhi, managing director of Vadidlal industries said, "We plan to increase our network penetration, which, in turn, will help us expand our market share." The company is also planning to come up with more products in the high-end ice-cream category, and hopes that it will boost its turnover by 40 per cent in 2011-12. As on date, Vadilal is a Rs 280 crore company. "As against the average industry growth of around 15 per cent, we are looking at achieving sales growth of 40 per cent in 2011-12.", he added.

Meanwhile, to support its growth plans, Vadilal is enhancing its production capacity from 2,25,000 litres per day to 3,25,000 litres per day from April onwards.

It has recently set up the country's fastest cone-making machine. The new machine is capable of making 18,000 cones per hour, from the current one which makes 6000 cones per hour. It has two ice-cream production facilities, one in Pundhra near Gandhinagar in Gujarat, and another at Bareilly in Uttar Pradesh.

Gandhi, however, also added,"Milk prices have gone up by 30 to 35 per cent on a year-on-year basis. We have already increased the prices in February by 7.5 per cent. So far, the sales have not been impacted due to the rise in prices. Now, we are planning to make another price rise of around five per cent next month." The demand growth during summer months is likely to offset the rise in ice-cream prices. Usually, sales grow four-fold during the summer months compared to the sales all year round, Vadilal claimed.

With soaring input costs and additional excise burden, all major ice-cream players have gone in for price rises in the last two months. Amul, the market leader with a 40 per cent market share has already raised prices of its large packs by around 10-12 per cent in March.

Another Ahmedabad- based ice cream major Havmor Ice Cream also plans to raise prices by around 5-7 per cent after April. Higher raw material cost is largely responsible for hike in ice cream prices.

As per the dairy industry players, the milk production cost in Gujarat has increased by 10 per cent in 2010, following which Gujarat Co-operative Milk Marketing Federation (GCMMF) raised retail milk prices twice in 2010 and once in first quarter of the current year.

Moreover, this year's Union Budget has brought ice-creams under the excise duty net with a levy of one per cent duty.

DEEPAK KUMAR

PGDM 2 ND SEM

World Cup Cricket Frenzy Pushes Final Tickets to $10,000

India’s Cricket World Cup final against Sri Lanka tomorrow in Mumbai has created a thriving black market with tickets selling for as much as $10,000 each.

One fan, Aditya Ayer, said he’s sold 10 seats through a website for 65,000 rupees ($1,460) each, including one to a supporter from Canada. The day before, tickets were being sold for 45,000 rupees, a price that climbed to 100,000 rupees, he said. The face value of the tickets in theSachin Tendulkar Stand is 15,000 rupees.

“I’ve taken about 150 calls in just a few hours,” 34- year-old Ayer said in an interview. “Every hour, the prices are going crazy. The whole world is going bonkers.”

Cricket is India’s most popular sport, and thousands rushed into the streets to celebrate the national team’s March 30 semifinal win over archrival Pakistan with impromptu firework displays and motorbike processions. Tomorrow’s match at Mumbai’s Wankhede Stadium is the 32-year-old event’s first all-Asian final and both teams are going for a second title. India is the 8-13 favorite to win, according to U.K. bookmakers William Hill Plc and Ladbrokes Plc.

The cheapest seat for the match at the 33,442-seat stadium was listed at 1,100 rupees, in a country where the average monthly income is about 3,000 rupees. The country also has the world’s fourth-highest number of dollar billionaires, according to Forbes magazine.

‘Fairytale Ending’

Organizers defended the decision to play the game in a stadium with the second-lowest capacity of the eight Indian grounds used for the 14-team competition, which is co-hosted with Sri Lanka and Bangladesh. The International Cricket Council’s chief executive officer said it would provide a “fairytale” backdrop to record-setting batsman Tendulkar’s attempt to score his 100th career century for India.

“Can you imagine a more fairytale ending with Sachin Tendulkar getting a hundred in the final and India winning at the Wankhede, which is his home ground?,” Haroon Lorgat told reporters. “And no matter what the number, we do not have sufficient tickets.”

Ayer, who works for a marketing company, said the tickets he sold were extras purchased by relatives who will keep the proceeds. He said he’s spending most of his life savings, about $10,000, to get a seat close to the pavilion where the two teams will sit.

“I have to pay that, there’s no option for me,” he said. “It’s going to be Sachin’s last-ever World Cup match and for someone who’s watched him for 20 years it’s a historic moment.”

Increased Demand

About 20,000 tickets have been distributed to clubs linked to the Mumbai Cricket Association. Many of these are being sold on the secondary market, Ayer said. Vinod Deshpande, secretary of the MCA, didn’t respond to calls seeking comment. ICC spokesman Colin Gibson said ticketing was a matter for the local organizers.

Other matches in the tournament’s knockout phase also failed to satisfy demand.

At Sri Lanka’s sold-out quarterfinal victory over England in Colombo last week, 50 S.L.-rupee (45 U.S. cents) seats were being offered for 2,000 rupees outside the ground.

That mark-up was nothing compared with the prices paid for India’s meeting with Pakistan, played at the Punjab Cricket Association Stadium in Mohali, the smallest tournament venue in India. The match brought both countries to a standstill and was front-page news in local media from the day the teams were drawn together.

DEEPAK KUMAR

PGDM 2 ND SEM

Honda appoints Mr. Seki Inaba as new Director, Marketing for India.

Honda Siel Cars India, country's largest premium car manufacturer has announced the appointment of Mr. Seki Inaba as its new Director of Marketing with effect from the 1st of April. Mr. Inaba is to take over from Tatsuya Natsume who moves further to Philippines as President and CEO, Honda Philippines.

 

Talking about his experience in India, Natsume said, “India is one of the most dynamic economies and among the fastest growing automobile markets in the world. It has been a great experience and an exciting journey for me to be a part of HSCI. I will take back good memories of my stay in India and look forward to my new assignment”

Mr Inaba, who has been associated with Honda for more than two decades now, will be one of the nine directors at HSCI and will be heading the Marketing, Sales and After-sales operations, reporting directly to the President and CEO, Mr. Takashi Nagai.

DEEPAK KUMAR

PGDM 2ND SEM

Foreign-focused funds start yielding higher returns

Retail Indian investors who believed investing in funds that buy overseas assets will yield higher returns are beginning to see their faith rewarded after a long wait. 

Funds such as Birla Sun Life Commodity Equities Fund , Fidelity Global Real Assets Fund , and ING OptiMix Global Commodities are outperforming domestic funds, due to the recovery in the west and concerns over Indian companies' earnings growth. 

Rising commodity prices, which have been a drag on Indian equities, have done the opposite for international funds, helping them gain as the prices of copper, crude and rubber rise. This is the first time international funds have met their prime investment objectives - to stay non-correlated to Indian markets, provide portfolio diversification and generate higher returns. 

Principal Global Opportunities, launched in March 2004, is India's first international fund. In 2007 and early-2008, several other fund houses also launched international funds. The idea, however, did not catch on, since most funds underperformed the local market during the 2008 market meltdown. 

"This is the first time that international funds have done better than the local market funds," says Harmendra Shah , vice-president, IPO & mutual funds, Sushil Financial Services. "Overseas markets have performed better than the Indian markets; this is one reason why international funds have done well this year."


DEEPAK KUMAR
PGDM 2 ND SEM

World Cup 2011: Brands stumped by India-Pak ad rates

 All roads may be leading to Chandigarh as cricket fans and teams prepare for the high-voltage India- Pakistan world cup semi-final match, but official broadcaster ESPN Star Sports is still to find takers for the ad inventory it had kept aside for lastminute deals, due to high rates. Media agencies handling enquiries for advertisers say brands are unwilling to cough up Rs 18 lakh per 10 seconds and ESPN Star Sports (ESS) may have to settle for less to use up any last-minute inventory. "Currently there are no brands we have heard of who are willing to buy spots at Rs 18 lakh per 10 seconds," says a senior media buyer from GroupM, the country's largest media buying firm whose clients include PepsiCo andHindustan Unilever . "Brands do want to use the opportunity, but the minute they hear the steep rates, they are backing out," the person added. 

ESPN Star Sports has sold most of the airtime for the semi finals and final, much in advance. The rates ranged from Rs 4-5 lakh for 10-second spots before the start of the tournament to Rs 10-11 lakh when it was clear that India will play Australia in the quarter final. Now, media agencies say it is demanding Rs 17-18 lakh for the less than 10% unsold inventory. Media agency executives say that the broadcaster has already earned more than Rs 800 crore from the world cup. An ESPN Star Sports spokesman declined to comment on the ad rates, but said the broadcaster had already sold almost 95% of its air-time . 

DEEPAK KUMAR

PGDM 2ND SEM

IMRB introduces syndicated study on 3G mobile services in India

 The recent auction of 3G spectrum and rollout of services by operators will see the delivery of a wide range of next generation services, such as video streaming, movie downloads, video calls, etc. which were not present till now.

To provide critical insights to close in the strategy for deployment of 3G services, The eTech Group@IMRB, active in the area of Telecom related market research for several years now, has carried out a Syndicated Study on 3G Mobile Services in India christened “The World Of 3nity”.

The first round of the study has been conducted amongst as many as 10,000 mobile subscribers and 1,520 establishments across top cities in India which are Delhi, Mumbai, Chennai, Kolkata, Pune, Ahmadabad, Bangalore and Hyderabad. The study also covers views of several industry experts on the India 3G market.

Deepak Halan Group Business Director eTech Group - Telecom & e-governance Practice IMRB International said “Of the 10,000 mobile subscribers interviewed face to face, only 9% own a 3G enabled handset, but 82% are willing to switch to a new (3G enabled) handset to avail 3G services, provided it lies in the Rs. 4200- 6400 price band. This is in line with the fact that Indian handset manufacturers have already started offering 3G enabled handsets at ‘middle class affordable’ prices. 32% are aware of 3G mobile services. Amongst those who are aware, 93% (highest) associate video calling with 3G while 2% (lowest) associate adult content with the service”

Here is what an industry expert had to say about other 3G services “Purely utilitarian stuff like traffic signal, map, directions, facilities, restaurants and purely entertainment stuff like gaming, infotainment will be very big. Casual gaming will dominate.” The report also reveals even more interesting information - that while video calling may be the most awaited 3G application, the main reason why people would even consider subscribing to 3G services is that it is known to improve voice quality.

In case of SMEs, the mobile usage today, is more restricted to voice. Other than that messaging is also being used especially by small enterprises. However the awareness of specialized enterprise applications such as ERP and CRM on mobile was found to be abysmally low. In order to increase penetration of 3G amongst enterprises, it is important to create higher awareness about how they can utilize 3G for business purposes.

While 3G services have been introduced in the country with great pomp and ceremony, there is a fair amount of uncertainty about consumer behavior. To what extent are consumers aware of 3G services? How many are likely to shift to another operator to avail 3G services with MNP now in place? How much premium are subscribers willing to pay to gain 3G access? What is the optimal price range for a video call and

 for. mobile TV monthly subscription? And what are the acceptability levels of pre/post paid mobile handset bundling concepts etc. The study conducted by IMRB International provides answers to all these questions and many more.

The Consumer segment study was carried out using random sampling with a minimum quota for some aspects such as SEC A, B, C & D and subscribers of the 3G spectrum winners while the Business segment study was done purposively amongst those involved with mobile/telecom decision making. The fieldwork was completed in Dec 2010. 

DEEPAK KUMAR

PGDM 2ND SEM

Nike Launches Bleed Blue Pledge New TV Commercial

Today Nike announced the release of “Bleed Blue Pledge,” a new ad campaign where the pride, passion, and fearless soul of Indian cricket brought to life through the voice of the elite athletes of Team India. During the 60-second ad the members of the Indian Cricket Team articulate the passion for cricket in this country, pulling back the curtain long enough for the viewer to witness how the game is played, loved and revered from the perspective of the athlete.

“Bleed Blue Pledge” is not just the voice of the professional athletes who play the game; it’s the voice of the sport as it exists inside the hearts and minds of millions of Indian fans and players. In India, the cricket that’s played in the streets of the cities gives birth to the cricket played on the fields of the stadiums. In turn, the dreams held by the streets are inspired by the realities of the arena. It is this reciprocal relationship that leads to the edicts of “Bleed Blue”, words that have become more like codes of honor to Team India and the fans that support them.

Meshed with scenes of real match play, “Bleed Blue Pledge” features elite cricket athletes like Zaheer Khan, Virat Kohli, S. Sreesanth, Sachin Tendulkar, M.S. Dhoni, Yuvraj Singh and Gautam Gambhir describing the tenets of their game. They dominate to the point where their opponents fear them. They approach the game head on. They break boundaries and achieve dreams. They banish fear, pain, and most of all: excuses. They give their heart and soul to the game of cricket, understanding that they are not only representing their team, but that they are speaking for entire nations who have become unified by a common love.

“There is no better voices to speak to the fervor and love for cricket held by this nation than those of the incredible athletes of Team India,” said Sanjay Gangopadhyay, Marketing Director, Nike India Pvt. Ltd., “’Bleed Blue Pledge’ is unique because it allows these players to express their passion and commitment to the game in their own words. They are testifying to what they believe in. And their beliefs come from the pride and culture of India. This ad demonstrates Nike’s deep connection to the sport, and to Team India, because there is no script. This is their moment to talk about their game.”

By utilizing both social and broadcast media, “Bleed Blue Pledge” will reach millions of India’s devoted cricket fans and allow them to share their passion for the sport/team. The teaser makes its world premiere March 23, 2011 on Nike’s Cricket Facebook page. The broadcast premiere of the spot then takes place during quarterfinal play on ESPN, the next day, March 24, 2011. The spot will also air on Star Sports, Star Cricket, and other sport, entertainment, and news channels.

The commercial was created by JWT of Bangalore, India .

“Bleed Blue Pledge” marks the latest opportunity for fans to “Bleed Blue” in support of Team India. “Bleed Blue,” Nike’s current cricket brand campaign, brings to life the passion and obsession for the sport shared by Team India’s players and their fans through consumer events, grassroots outreach, and social networking. “Bleed Blue” has encapsulated the fervor for cricket in India by collecting over 11 million handprints via an innovative digital and events campaign that asked fans to express their loyalty to the team by simply marking their handprint in blue. Fans were then able to post their unique handprint to their Facebook page to share with friends and with India’s men in Blue.

As the sporting world prepares for cricket to enter quarter final round play, Team India will be seen sporting Nike’s Considered team kits made from recycled plastic bottles. Nike, the official apparel sponsor for the Board of Control for Cricket in India (BCCI), introduced its considered design ethos in Team India’s game day apparel in September 2010. The team began wearing this kit for the first time on pitch this spring. 

DEEPAK KUMAR

PGDM 2ND SEM

Percept Out Of Home executes pillar branding for PepsiCo

Percept Out Of Home executes pillar branding for PepsiCo
Percept Out of Home, Retail Vertical, official partners to PepsiCo for there Modern Trade initiatives was called upon to research, design, fabricate and deploy the secondary placement solutions across Modern Trade chains, pan India. PepsiCo wanted customers to have all the choices possible in the portfolio. Hence PepsiCo with the support of Percept Out of Home, Retail Vertical deployed gigantic and disruptive in-store displays at Spencer’s Retail (Delhi), one being a pillar display.


DEEPAK KUMAR 
PGDM 2ND SEM

Nokia pays Elop over $6 mn to move from Microsoft

HELSINKI: World's top phone maker Nokia will pay its CEO Stephen Elop more than $6 million in one-time payments for moving to the Finnish company from Microsoft last September, a corporate filing showed on Friday.

As compensation for lost income, Nokia paid Elop last October 2.3 million euros ($3.18 million), and will pay a further $3.0 million in October 2011, according to Nokia's annual 20-F form filed with the US securities and Exchange Commission.

Elop's total gross base salary is 1.05 million euros, slightly below his predecessor Olli-Pekka Kallasvuo , whose base salary was about 1.18 million in 2009.

ALEEM AHMAD

PGDM-2ND SEM.

Indian politics and Lankan economics

Indica relaunched by Tata Motors at a starting price of Rs 2.95 lakh

NEW DELHI: Tata Motors today said it has launched new diesel and petrol variants of its hatchback Indica, priced between Rs 2.95 lakh and Rs 3.95 lakh (ex-showroom, Delhi).

The company claimed that the diesel vehicle gives a mileage of 25 km per litre as per Automotive Research Association of India (ARAI) and is the most fuel efficient car in India.

"Tata Motors today launched the Tata Indica eV2, the most fuel efficient car in India with a mileage of 25 kmpl, certified by the ARAI for the CR4 diesel engine," the company said in a statement.

The new car -- eV2 -- comes with a CR4 common rail diesel engine. The petrol option will run on a multi-point fuel injection engine.

"The Tata Indica eV2 is in the range of Rs 3.95 lakh and Rs 4.77 lakh (ex-showroom, Delhi) for the CR4 diesel engine and in the range of Rs 2.95 lakh and Rs 3.58 lakh (ex-showroom Delhi) for the MPFI petrol," the statement said. 

ALEEM AHMAD

PGDM-SEM 2

The Top 5 ads of 2010

Chairman and chief creative officer, Lowe Lintas, R. Balakrishnan is also a film-maker. Balki, as he is known, is a diehard fan of Ilayaraja, the noted composer from the south. He has 22 years experience in the advertising industry and has worked on brands such as Idea, Bajaj, Britannia and Surf Excel. He began his career with the Mudra Group at 23 and has directed the films Paa and Cheeni Kum. He lists his Top 5, in order of preference: Cadbury’s “housewife in jeans”, 25 years of Kotak Mahindra Bank, the Vodafone BlackBerry Boys, the Kaun Banega Crorepati (KBC) launch ads and the Frooti candid camera ad.
(Disclaimer: Balki was asked not to pick any ads from his own agency.)
Cadbury’s, ‘Housewife in jeans’
My first pick is the Cadburys ‘Housewife in Jeans’ commercial. It’s part of a series done for the Shubh Arambh campaign. The campaign itself is about doing things for the very first time and the fact that we Indians culturally believe that eating something sweet is auspicious before a new beginning. This particular commercial showed a housewife trying out jeans for the very first time. She’s nervous about it and it’s obviously was a huge step for her. It’s a lovely insight and a great idea to celebrate the start of something new.
25 years of Kotak
All the ads in Kotak’s 25 years campaign are interesting. For instance, there is one where a girl pierces her tongue. All the ads ended with ‘Its great to be 25.’ To me, that’s a wonderful way of projecting a 25-year-old bank as young. Yet you are conveying that you’ve been around and have serviced customers for a long time. Simple idea, done well.

BY
Akanksha arora
pgdm,2nd sem

Sebi to have 2 new members

NEW DELHI: The Securities & Exchange Board of India (Sebi) top deck may soon don a new look with the government set to appoint two full-time members.

The move comes as the terms of two members-K M Abraham and M S Sahoo-are scheduled to end. The two are, however, eligible to seek reappointment. Last month, U K Sinha replaced C B Bhave as the head of the stock market regulator. Prashant Sharan, the third member, has two years left in his term. However, the government has decided to give a five-year term to the new members, unless they turn 65. tnn

The other new element in the terms listed in the advertisement issued by the finance ministry requires government servants to resign from service and take up a contractual assignment with the market regulator.

The members would be eligible to a conolidated pay of Rs 2.5 lakh a month or that of an additional secretary in case they choose to avail of benefits such as accommodation and transport from Sebi.

"A whole-time member shall be a person of ability, integrity and standing who has shown capacity in dealing with problems relating to securities markets or has special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline," the advertisement said.

ROHIT KALIA
PGDM 2ND SEM

Facebook valued at $65 billion

BOSTON: General Atlantic is expected to buy a 0.1% stake in Facebook, an investment which will value the social networking site at $65 billion. The General Atlantic investment involves the purchase of a block of roughly 2.5 million shares of stock from former Facebook employees, a report said.

While the deal between General Atlantic and the shareholders has been agreed to, it requires the approval of Facebook and so has not yet been closed, the report said. The last major investment in Facebook, made in January, had valued the company at $50 billion.

The company had said it raised $1.5 billion in a financing round led by Goldman Sachs and Digital Sky Technologies. The latest investment, which values the company at $65 billion, means that the social networking site's value has grown by 30% in less than two months. General Atlantic mostly makes investments of $50 million to $500 million in private and public companies. The firm has $17 billion in capital under management. Companies in the firm's investment portfolio include luxury goods seller Gilt Groupe and software company Kaspersky Lab.

 

ROHIT KALIA

PGDM 2ND SEM

Coke steals the show with some shadow playNo one industry dominated TV advertising in December, with commercials for soft drinks, packaged food, mobile phone and washing powder brands occupying the top 10 slots on the ad reach index, a measure of brand awareness and recall.

No one industry dominated TV advertising in December, with commercials for soft drinks, packaged food, mobile phone and washing powder brands occupying the top 10 slots on the ad reach index, a measure of brand awareness and recall.

Also See | Top Television Ads in December (PDF)

A Coca-Cola ad tops the table with 85 points on the index, well ahead of second-placed Cadbury Dairy Milk Silk’s 73 points.
Mobile handset maker Micromax has two ads in the top 10, ranked third and seventh, while washing powder brand Ariel OxyBlu has two ads, at the fifth and ninth positions.
The Mint-Synovate-TVAdIndx survey covered 769 respondents from high-income groups in New Delhi, Mumbai and Bangalore.
Telecom operators such as Bharti Airtel Ltd and Vodafone Essar Ltd dominated the monthly ad reach index last year, but there is no telecom commercial in the December Top 10.
Overall, December ads have fared better than ads in the previous month, when the top-ranked ad, for Airtel, had scored 76 points on the reach index. Six ads had scored less than 50 in November, compared with three in December.
The Coca-Cola and Cadbury Dairy Milk Silk ads also take the top two positions, respectively, in the ad diagnostics index, which measures softer features of ads such as likeability, enjoyment, believability and claim.

By Akanksha arora

Gupta to be named SBI MD

NEW DELHI: Diwakar Gupta is set to be appointed one of the managing directors of State Bank of India, the country's largest bank, though there is no clarity on who the other two MDs would be.

Sources told TOI that the department of personnel and training has cleared his appointment and a formal notification is pending with the finance ministry. Gupta is currently a deputy managing director and group executive, national banking. Two other deputy managing directors- Hemant Contractor, who is the CFO, and Pratip Chaudhuri, in-charge of international banking-were also recommended for the posts of MD.

The two are also in the reckoning for the post of chairman since O P Bhatt is due to retire at the end of the month. Gupta until recently headed SBI Cards, SBI's credit card joint venture with GE Caps. In fact, he was the first SBI nominee that the credit card arm had in the wake of losses reported by it. Gupta was given a clear mandate to turn around the company and put in place a new strategy that was also linked to the bank's operations.

He will now join R Sridharan as the second MD. While the bank has traditionally had two managing directors, a recent amendment to the law has made it possible for the government to appoint two more MDs. The second MD's position has been lying vacant for nearly six months since the retirement of S K Bhattacharya.

ROHIT KALIA

PGDM 2ND SEM

AOL to buy Huffington Post for $315 mn

Washington: AOL Inc has agreed to buy The Huffington Post, the influential and rapidly growing news, analysis and lifestyle website, for $315 million, the struggling US Internet company announced on Monday.
The move will create a media group that will have a combined base of 117 million visitors a month in the United States, and reach 270 million people globally, AOL said in a statement.
The deal follows efforts by AOL’s chief executive Tim Armstrong to turn around the dial-up Internet access business by trying to turn it into a media and entertainment powerhouse, despite difficulties in attracting investors.
AOL suffered sharp declines in advertising sales and dial-up subscriptions in the fourth quarter of 2010, driving overall revenue down 26%.
Arianna Huffington, co-founder of The Huffington Post, said on her blog that she would lead a newly formed The Huffington Post Media Group, which will integrate all Huffington Post and AOL content, as its president and editor-in-chief.
“By combining HuffPost with AOL’s network of sites, thriving video initiative, local focus and international reach, we know we’ll be creating a company that can have an enormous impact, reaching a global audience on every imaginable platform,” she said.
Approximately $300 million will be paid in cash in the purchase, which has been approved by the boards of directors of both companies and shareholders of The Huffington Post, though it still needs government approvals, AOL said.

By Ankit thakur

Sensex down 262 points in early trade on political worries

MUMBAI: The Bombay Stock Exchange benchmark Sensex fell by over 262 points in the early trade on Monday on fresh spell of sell-off by funds, triggered by political worries and a weak trend on other Asian bourses.

The 30-share barometer, which shed 3.31 points in the previous session, plunged 262.29 points or 1.42 per cent to 18,224.16 on the back of losses in auto, banking, metals, oil and gas, and IT sector stocks in the first few minutes of trade.In a similar fashion, the wide-based National Stock Exchange index Nifty lost 79.95 points, or 1.44 per cent, to 5,458.80 points.

The trading sentiments turned weak due to political worries after a key ally, DMK, decided to pull out of the Congress-led government at the Centre, said traders.

A weak trend on other Asian bourses following weekend losses at the US also dampened the sentiment, they added.

Meanwhile, in other Asian markets, Japan's Nikkei was down by 0.62 per cent in the morning trade while the US's Dow Jones Industrial Average ended 0.72 per cent down on Friday last.

ROHIT KALIA
PGDM 2ND SEM

PepsiCo banks on Salman to strengthen Mountain Dew

New Delhi: After roping in Bollywood star Salman Khan as brand ambassador for its carbonated drink Mountain Dew, PepsiCo on Wednesday said it will go on an aggressive drive to scale up presence of the brand across India this summer.
The company had signed up Khan as the first ever celebrity endorser for Mountain Dew since its launch in India eight years back as it looks to strengthen presence beyond the traditional strongholds in northern and western regions.
“Mountain Dew has been extremely strong in the North and the West. This summer, we plan to increase our reach nationwide,” Pepsico India director (Flavoured Drinks Category) Alpana Titus said.
PepsiCo is going for an aggressive expansion plan and increase the footprint of the product, she added.
Titus said the partnership with Khan will further enhance its marketing initiatives for the brand and help in attracting more consumers to the product.
“Khan fits well with the brand and will help in scaling up our campaigns during this summer season,” she said.
As part of the exercise, the firm is rolling out outdoor campaigns and free sampling initiatives across the country, with an aim to reach out to 1 million consumer

By Anima Sinha

The Importance of Search Engine Marketing for B2B Marketers

Is Search Engine Marketing cost effective enough to increase profits for B2B marketers? You bet, and here’s why. It’s always been conventional wisdom that the fastest and most efficient way to research products and pricing is on the Web. Now Enquiro has documented survey research on the role of search engines in B2B transactions.

As you know, B2B transactions differ from most consumer transactions because these decisions require coordination between a number of different personnel before the final transaction is made. Therefore, the process requires a period of time between researching the product and placing the order. It’s an ongoing rather than snap decision.

“The Role of Search in Business to Business Buying Decisions” is a well-designed study of approximately 1500 participants responding to a 40-question survey that was validated with pre-testing before implementation. You can download the entire report for free, and here are a few highlights:

• When participants were asked to indicate how they would go about making a B2B purchase, 93.2 percent said they would research the purchase online.
   
• When asked if they would use a search engine at some point in this task, 95.5 percent of participants indicated that they would.
   
• When asked where they would start their search for information, 63.9 percent of participants chose a search engine over consumer review sites, e-commerce sites, manufacturer’s sites, and industry portals.
   
• When taking budget into consideration, manufacturer’s sites and industry portals were the chosen starting place as budgets increased. However, 86.9 percent of participants said they would visit a search engine after visiting those sites.

The study is rich with too many details to cover in this article, but following are some important conclusions:

• Search engines play a dominant role in B2B purchases.
   
• Search engines are used in the early or mid research phase in the buying cycle.
   
• Google is favored over other search engines.
   
• Search engine research takes place at least one to two months before the buying decision.
   
• Good balance between organic and paid search is necessary. Organic SEO gets over 70 percent of the clicks.
   
• Position is a factor, with over 60 percent clicking on the top 3 listings.
   
• Most users decide which listing to click on in seconds upon scanning the

By Anima Sinha

When 'bottom-up' becomes the new normal

When 'bottom-up' becomes the new normal   

Google. Facebook. Twitter. YouTube. The one thing they’ve all got in common is that they’re driven by information input and volunteered by individuals. For marketers steeped in decade upon decade of top-down messaging, this is an extraordinary development. But the big question remains unresolved: will ‘bottom up’ and ‘peer to peer’ remain a mere adjunct to a largely unchanged top-down system? Or are we witnessing the beginnings of a new marketing ‘modus operandi’?

Let’s take one tiny piece of ‘bottom up’ information as an examplar: the humble customer product review.

Not long ago, the mere fact that customers could now comment on a product was exciting, refreshing and revolutionary. For companies like Amazon who embraced it first, it was a significant differentiator. Among traditionalist marketers it was repugnant: why let somebody criticise what we’re trying to sell? Every message has to be ‘on message’, or else!

But consumers liked the peer review. It helped them make decisions, reduce anxiety and build trust. Retailers that carried reviews discovered it improved traffic and led to an uplift in sales. People got used to the idea. It became the new normal – an expectation.

At the same time, however, there was a ‘wild west’ element to it. You didn’t really know who was writing the review (many were churned out by cynical PR operators). Even if the reviewer was genuine, they may not know what they were talking about. And what about the silent majority who never submitted reviews? All in all, while hugely beneficial, the peer review was also an ad hoc, chaotic set-up, and full of flaws.

What it needed was structure, discipline and process – a shift from a one-off incidental consumer activity enabled by some clever new software to an organised, focused business model. This is what Reevoo did. As it explains in a new paper published today, this structured approach brings many benefits.

Left to themselves, fewer than 1% of customers bother to contribute a review. But a disciplined process of positively asking for reviews from known buyers can take this response rate up to 15%. This means that a) more products get reviewed, b) each product gets lots more reviews and c) it’s possible to get much more granular, detailed information from the review – not just ‘it sucks!’ or ‘it’s great!’ but “the picture quality is great but the sound quality isn’t that good’, etc. 

DEEPAK KUMAR

PGDM 2 ND SEM

Most viewers claim not to be swayed by product placement

New research from YouGov suggests product placement will not drive brand profile, while 70% of people quizzed claim their perceptions will not be changed by brands in paid-for slots.

TV viewing: research suggests viewers will not be swayed by product placement

The survey of 2,062 people revealed just 32% of people quizzed were even aware that Ofcom's rules had changed to allow product placement.
Product placement in UK-produced programming was permitted from Monday, with Nestle's Dolce Gusto brand the first to be featured, on ITV's 'This Morning'.
More than a third (36%) said they did not even know what product placement was, but 73% admitted to having seen product placement in US TV shows and films – 17% "all the time", 40% "just occasionally" and 16% "rarely".
As far as the UK was concerned, 50% were indifferent to the introduction of product placement.
Under a quarter (23%) thought its introduction was negative, 7% said it was "very bad" and just 14% regarded it as positive.
Of those who had noticed product placement "all the time", 34% considered it to be negative.
Seven-tenths (70%) of respondents said their perceptions of a brand would not change if they saw it on a TV show or film.
Adele Gritten, head of media consulting at YouGov, said: "What, where, when and how product messages are placed will be key, and marketers need to be cautious of alienating, rather than attracting, potential brand advocates, and of overt intrusion into the viewing experience.
"However, consumers accept the commercial realities of the day and the currently planned changes are unlikely to detract from viewer enjoyment overall. Time will tell as to which brands get the correct channel/programme fit and which ones nurture the right kind of relationship with their viewers, rather than simply bombarding them."
ITV was considered the most "appropriate" channel to carry product placement, with 30% of respondents approving its use, closely followed by Dave on 29%.
MTV and Discovery were deemed the least appropriate, with just 9% and 8% respectively, in favour.
The product considered most appropriate to place was milk, cited by 39% of respondents, followed by "other foods" on 38%.
Those polled were less enthusiastic about product placement for cereals or health and beauty items, with just 19%, 13% and 8% of respondents, respectively, approving of its use.
Several brands are known to be lining up to sign deals with various broadcasters, but Channel 4 and ITV are said to be cautious about opening up high-profile soaps, such as 'Coronation Street', 'Emmerdale' and 'Hollyoaks', to product-placement deals.

DEEPAK KUMAR
PGDM 2N SEM

 

Search Engine Use Increases Sharply,

Search engines have become an increasingly important part of the online experience of American internet users. The most recent findings from Pew Internet & American Life tracking surveys and consumer behavior trends from the comScore Media Metrix consumer panel show that about 60 million American adults are using search engines on a typical day.
These results from September 2005 represent a sharp increase from mid-2004. Pew Internet Project data from June 2004 show that use of search engines on a typical day has risen from 30% of the internet population to 41%. This means that the number of those using search engines on an average day jumped from roughly 38 million in June 2004 to about 59 million in September 2005 – an increase of about 55%.
comScore data show that from September 2004 to September 2005 the average daily use of search engines jumped from 49.3 million users to 60.7 million users – an increase of 23%.
This means that the use of search engines is edging up on email as a primary internet activity on any given day. The Pew Internet Project data show that on a typical day, email use is still the top internet activity. On any given day, about 52% of American internet users are sending and receiving email.
These findings have considerable consequences for the way people gather and use information online and the way e-commerce is conducted.

By Ankit kumar