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Did I hear ‘eter’no?!

7. Apr 2008 02:51, sonu42

 

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Strangely, Honda Eterno played in a lost segment and won. Wow!

Like Honda Eternothe ‘holy cow’  and the proverbial snake charmer, another picture perfect image of India that strikes upon from a lonely planet guide is that of the great Indian family of four breezing down crowded by-lanes on a 2-stroke scooter! Of course, n o t much has changed in the way the whole experience looks even today. The only thing perhaps that has undergone a transition is that the good old two-stroke scooter has gone four-stroke and is now endorsed by MNCs like Honda.

After Strangely, Honda Eterno played in a lost segment and won. Wow!Activa’s flaring sales charts and Dio’s relatively buoyant north projecting figures, Honda in 2003, launched the Eterno redefining public perception of the way one recalls the good old scooter days. As compared to its pre-historic counterparts, the Eterno – apart from the 4-stroke ride and a mileage to stare right into any 100cc category bike – offers loads of storage space in the under seat box, a wide and a flat footboard, a bag hook and a side grab rail, all a testimony to Honda’s focus towards the common Indian family! “HMSI believes that full-size customers have unique needs. It is only because their needs have not been adequately met by existing models that they have begun looking at other 2-wheeler categories like motorcycles, which is witnessing growth. Thus, with this understanding, we decided to launch the Eterno,” expressed Haruo Takiguchi, President & CEO, HMSI. Sure, Indians have taken note of your product, Takiguchi!

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An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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HSBC :- The world’s local bank

28. Mar 2008 00:27, sonu42


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BRAND : HSBC

AGENCY : Contract Advertising

BASELINE : The world’s local bank

DESCRIPTION: Om HSBC :- The world’s local bankPuri plays a café owner who gets into a fight with his next-door bookshop owner (Neena Kulkarni) over the books that a customer keeps on a table. The V.O. says, “In business, 68% of Swedes believe that you have to be prepared to descend your character.” Cut to the next morning: Om Puri throws bits of papers into the bookshop and both argue again. The V.O. says, “While 65% of Italians think that giving way is a sign of weakness.” Next we see Om Puri and Neena Kulkarni are selling their respective wares in a common shop (though still competing) and the V.O. says, “For Indians however, 38% believe that success often comes from unlikeliest of partnerships. Different points of view are welcome here…”

4PsTAKE: This ad efficiently takes forward HSBC’s tagline of being ‘The world’s local bank’. The message highlights how the bank understands the different views of its varied customers via the two talented actors, Om Puri and Neena Kulkarni. The reward to the prospect is banking with a global bank that understands local flavour and is willing to go that extra mile to make customers feel comfortable. Full marks to the storyboard: strong and interesting narrative, hugely entertaining and clearly explaining the theme, maintaining the required focus. The clinching benefit to the brand is the ‘flexible’ nature of the bank. ‘Different people, different views’? Point made!

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Source : IIPM Editorial, 2008 An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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The ‘catch’ in the catch

13. Feb 2008 23:38, sonu42

 

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A fishing tournament where nothing’s fishy!

For A fishing tournament where nothing’s fishy!anglers and sport fishing enthusiasts alike, this is the ‘Super Bowl’ of all fishing tournaments! Into its 35th year now, the US Virgin Island Blue Marlin Tournament is held every year in the ‘Blue Marlin Fishery’ region of the Virgin Islands. Instituted initially to spread the word about the bounty of Blue Marlins (one of the most prized catches for an angler) that can be had in this region, the tournament has grown into a modified format following a ‘catch and release’ philosophy where the Marlins caught are released back into the ocean unless it happens to be a world record catch. Subsequently, it became the first fishing event in the world to release Blue Marlin. Though unique, the tournament’s approach raises some interesting questions about the sport of fishing. The releasing of the Marlin back into the water is great from a conservationist’s point of view (only three Marlins have been put on dock since the introduction of the ‘Modified Release’ scoring format) but the catching techniques (the hooks used for instance) could still cause harm to the fish.

The participants every year compete for serious amounts of cash in the individual, boat & crew categories, and this event which is nicknamed as ‘Boy Scout’ (because the money generated by the first tournament was donated to benefit the Virgin Islands Council of the Boy Scouts of America) remains on top of every angler’s wish-list. The format sure is an added motivation to do something good and have fun at the same time. As of today it attracts the best of the best anglers from around the world just as the Virgin Islands angler Chuck Senf had envisioned when he started it in 1972. Want to give something back to nature and hunt for a little personal glory? Go fish... where else but at the US Virgin Islands Atlantic Blue Marlin Tournament!

Edit bureau: Tareque Laskar

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A picture with shades of grey...

16. Jan 2008 23:57, sonu42

 

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Akzo gains market leadership, but could lose shareholder trust

While Akzo gains market leadership, but could lose shareholder trustwe have oft en been amused by the British stiff upper lip, this trait has also done them good at times. The latest instance is acquisition of UK-based chemicals company ICI by Akzo Nobel. ICI rejected offers by Akzo twice, playing hard to get till the deal was closed at a cash offer of 670 pence per share, valuing the company’s ordinary share capital at nearly $16 billion. 

Chances of a better rival bid are low, as ICI has already been grossly overvalued (premium of 35% over ICI’s average closing price for the last six months). Besides, an additional side deal has been finalised where Akzo’s partner, Henkel, would buy the National Starch Business of ICI for $4 billion. For Akzo, it had become unavoidable, with their arch rival PPG industries taking over SigmaKalon to expand their coatings portfolio. Commented Akzo Nobel CEO Hans Wijers, “We will create a leading global coatings & specialty chemicals company with a diversified geographic presence....” 

Analyst Wim Hoste, KBC Securities, told B&E, “With ICI’s operations in Asia & eastern Europe that offer good growth markets, Azko can benefit to a great deal and generate good cash flows.” Akzo will also benefit from ICI’s global presence with around one third of revenues coming from emerging markets like Asia Pacific & Latin America, 40% in America and the rest from Europe. According to the Global Coatings Report (2006), annual growth by value during 2005-2010 will average 5.4% as against 2.7% during 2001-2005. 

It’s a bonanza for ICI, but remains a very expensive acquisition for Akzo, which is why Akzo share prices have been in a state of free fall. On August 20, Akzo shares closed at $72.94, a drop by 7% from their value on August 13. The company will still have to justify the price to shareholders, which may not be a cakewalk. One shareholder group, TPG Axon, which holds 3.5% stake in Akzo has also criticised the high exposure of ICI to the US, with its falling housing market. Agrees Wim, “Akzo will have to (read aggressively!) tap revenue & cost synergies to justify the huge amount.” Guess they will need to demonstrate a stiff upper lip now, provided they have one!

Edit bureau: Aditi Soni 

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An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru
and Economist) Initiative 

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Second Green Revolution

27. Nov 2007 00:17, sonu42


IIPM PUBLICATION  

What’s escaped the notice of the media by and large so far are the path-breaking agreements reached between the two countries on the agriculture front. Close to Rs.10 billion has been set aside to promote research cooperation between the two nations in the agriculture sector. Having been fed on State propaganda that the Green Revolution in India was purely the result of indigenous efforts, most Indians are not aware of the fact that the US did play a positive role in helping India trigger the Green Revolution. Who knows, the new partnership can lead to newer efforts that can trigger a Second Green Revolution – something
that the Indian agricultural sector is desperately waiting for. Yet, there is a need here for Indian policy makers not to rush in where angels fear to tread. And this applies particularly to the controversial genetically modified (GM) crops and seeds that American companies specialise in. Agricultural scientists in India must be allowed to conduct extensive field trials of GM crops before the door is opened. Similarly, strategic experts caution against undue euphoria about the strategic partnership between the United States and India. Writing in the Times of India, Swaminathan Aiyer categorically states that “India and the US are not natural allies... In its current mood, the US does not want allies...but they are natural partners.” The fundamental question beyond the rhetoric and lip service about the two largest democracies of the world is, what does the US gain out of this strategic partnership apart from access to the vast Indian market and world class pool of intellectual capital?

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After CDMA, will nokia miss the 3G bus ?

20. Nov 2007 00:24, sonu42


IIPM MANAGEMENT INSTITUTE

The next big thing in wireless technology in India would be the transition to 3rd generation (3G) technology that promises users a great motley of services. 3G, as a technology, is inherently more sophisticated as it supports both the CDMA (Code Division Multiple Access) and GSM (Global System for Mobile Communications) technologies. The main differentiators from 2G/2.5G are video telephony and video content that are provided on a “better quality and higher speed” platform. But the first mover advantage in 3G eludes Nokia, though it possesses the technology. The slumber, however, has not lasted long as the company is introducing a number of 3G handsets. LG, reportedly, has already shipped one million 3G handsets in Europe during the first quarter of 2005. Nokia’s initial reluctance to switch over to CDMA in India cost it dear. History repeats itself! One can only hope that Nokia does not miss the 3G bus this time.

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Die’versifi ed?!? Naah!

22. Oct 2007 01:09, sonu42


IIPM PUBLICATION 

Gone are the days ‘diversified’ meant ‘troubled’. Robust performances by companies operating in the diversified sector points towards a new era of growth coupled with value!

While Die’versifi ed?!? Naah!India Inc. registered yet another year of outstanding growth and profitability, indicating the start of a new chapter of upswing in the economy, the companies operating in diversified sectors too continued to display their robust performances. The year was loaded with mixed trends for different sectors that comprise this so called ‘diversified’ sector. But critically, earlier the choice of empire builders, diversification creates shareholders’ value without compromising on the conceptual focus on growth.

Dominated by the two traditional Indian business conglomerates – the Tatas and the Birlas – the sector displayed a lot of vibrancy during the past fiscal. Be it Grasim and A.B. Nuvo from the stable of Aditya Birla or Tata Chemicals and Voltas from Tata’s kitty, these well diversified companies continued to move up the growth trajectory. On a leading front, Kesoram Industries – a B.K. Birla flagship – posted a phenomenal surge of around 481% in its net profit. Concentrating more on cement and tyres, Kesoram Industries increased its focus on rayon & chemical businesses.

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Rebutting ‘The Fig Leaf theory’

24. May 2007 23:45, sonu42


IIPM PUBLICATION  

Even America’s mulling over the same issue after a recent study on 2057 students by Mathematica Policy Research Inc. revealed that sex-abstinence classes did not stop pre-marital sex but merely delayed it. Thus raising concerns regarding the actual worth of such classes.

Opines Mr. K.K.Verma of Smile Foundation, “Sex education is required to make an informed choice. The premise of sex education is not to reduce the incidence of sexual encounters. Hence a better indicator would be reduction in premarital /adolescent pregnancy, abortion, and increase in safe sexual practices. As times change, children want to experience things as early as possible. They get information from friends and other sources that are usually not reliable and end up fostering wrong opinions and even indulge in sex not knowing what the consequences might be.”

So maybe instead of protecting the children from the big ‘bad’ world, we should tell them a bit about the birds and the bees and mould them into informed citizens of tomorrow.

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Since 2001, emerging market stocks have massively out-performed global stocks & are prime beneficiary of the “excess global liquidity”

7. Jan 2007 22:44, sonu42

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The key is not to have money when everybody else does, but to have money when everybody is leaking his wounds and is financially in a desperate situation. Looking at the shape of asset markets’ recent increases in value (
stocks, bonds, commodities, art, “trophy” properties) and at the optimistic and complacent mood (record low volatility) among investors in all asset classes, my view would be that reducing one’s assets positions between now and early January might not be a bad idea. In fact, I must admit that my greatest worry for now is that I am not as particularly bearish as usual about the prospect of asset prices rising any further. As a contrarian indicator, this might tell you something! 

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