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Pratibimb | September 2012 | 1

FINANCE | GENERAL MANAGEMENT | HUMAN RESOURCE | MARKETING | HEALTHCARE | OPERATIONS | SYSTEMS

The Reflection of Management

A Student’s Initiative

Volume II, Issue XII I September 2012 A Monthly e-Magazine

PRATIBIMB

Flash Mob

An exploitable promotional strategy!

By Ambili Jayachandran, Universit of Kerala

Exclusive Interview of Mr. Prakash DadlaniCountry Head, Marketing Excellence,

3M

BookReviewof‘The Toyota Way’

By Prof. Rishi Kesava Ram Velure,

Facult Associate, Healthcare, TAPMI

“Neuro-marketing”

Canthepowerofthesubconsciousaffect

consumerchoices?

By Pramit Das & Subhamoy Gangly, IMT Ghaziabad

Sponsored By




T. A. Pai Management Institute (TAPMI) is a premier management institute situated in

Manipal and is well known for its academic rigor & faculty-student interaction. The

Institute has been recently ranked amongst top 1 per cent of B-schools in India & 4th

in the South Zone by The Week Magazine.

Founded by the visionary, Late Shri. T. A. Pai, TAPMI‖s mission is to provide muchneeded impetus to the task of building professional management capability in the

country. In the process, it has also played a role in strengthening the existing

educational and health infrastructure of Manipal.

We are committed to excellence in post graduate management education, research

and practice by nurturing and developing global wealth creators and leaders. We shall continually benchmark ourselves against the best - in - class institutions. We shall foster

continuous learning and reflection, achievement - orientation, creative

interdependence, and respect for diversity with a holistic concern for ethics,

environment and society.

T. A. Pai Management Instute Manipal, Karnataka

About TAPMI

Our Mission




TAPMI‖s e-Magazine - is the conglomeration of the various

specializations in MBA (Marketing, Finance, HR, Systems and

Operations). It is primarily intended to provide insights into the

plethora of knowledge that relate to the various departments of

Management and to give an opportunity to the students of

TAPMI and the best brains across country to exhibit their

creative cells. The magazine also strives to bring expert inputs

from industries, thereby bringing the academia and industry

together.

Pratibimb the e-Magazine of TAPMI had its first issue in

December 2010. The issue comprised of an interview of

denoted writer Ms. Rashmi Bansal along with a series of articles

by students and industry experts like MadhuSudan Rao (AVP-Delivery, Mahindra Satyam) &

Ed Cohen who is a global leader and chief learning officer who led Booz Allen Hamilton &

Satyam Computer Services to the first rank globally for learning & development . It also

included a hugely successful and engrossing game for finance geeks called “Beat the Market”

to bring out the application based knowledge of students by providing them the platformwhere they were expected to predict the stock prices of two selected stocks on a future date.

The magazine is primarily intended for the development of all around management

knowledge by providing unbiased critical insights into the modern developments.

TAPMI believes that learning is a continuous process and is not limited to the four walls of

the classroom. This viewpoint is further enhanced through Pratibimb wherein students

manage and contribute to create a refreshing learning environment outside the classrooms

which eventually leads to a holistic development process. The magazine provides a

competitive platform and opportunity to the students where they can compete with the bestbrains of the country. The magazine also provides a platform for prominent industry

stalwarts to communicate their views and learning about and from the recent developments

from their respective fields of business which in turn helps to create a collaborative learning

base for its readers.

Pratibimb is committed in continuing this initiative by bringing in continuous improvement

in the magazine by including quality articles related to various management issues and

eventually creating a more engaging relationship with its readers by providing them a

platform to showcase their talent.

We invite all the best brains across country to be part of this initiative and help us take this

to the next level.

PRATIBIMB

TAPMI’S MONTHLY e-MAGAZINE VOLUME 2, ISSUE XIII SEPTEMBER, 2012




It is always a pleasure to witness that certain efforts of the students are sustained and

carried forward; Pratibimb is one such. The oft-beaten track, “We are here to learn,” ends up

as a mere platitude when there are no visible actions and documentation. Whereas there is

no dearth of actions at TAPMI, documentation is not something that many—other than

scholars—choose to engage in; it is normally viewed as uninteresting, drab and a drudgery.

TAPMIans have proved that they are equally capable of actions and of documentation

without losing the intellectual flavour of it.

Scholarship is too important a phenomenon to be left to scholars alone, especially in the field

of management. As future practicing managers who will be engaged in rigorous action in

different fields of business, TAPMIans have manifested both the penchant to produce

research works and also get their counterparts in other leading business schools to

contribute their thoughts to this endeavour. In this regard, TAPMIans have truly

demonstrated the evidence for creative interdependence, an important aspect of TAPMI‖s

mission.

I sincerely appreciate the students and the faculty of TAPMI who have made Pratibimb a

possibility through their scholarly works, co-ordination efforts and support. I wish the team

the very best.

Dr. R. C. Natarajan

Director’sMessage




Editor’s corner

Dear Readers,

Pratibimb has imbibed new members! With a fresh batch at our

campus in TAPMI, Manipal, Team Pratibimb has seven innovative new

members who now comprise the sub-editorial team. Our latest

September issue has seen a colossal number of contributions. ! To aid

us decide which entries really merit the cut, we have a continual

rendezvous with many faculty members. I, on behalf of the entire

team would like to congratulate all who have had their contributions

published We at Pratibimb salute all who have contributed in any

manner to augment this magazine.

Our current issue carries special features such as an exclusive

interview with Mr. Prakash Dadlani, 3M and another interesting

interview with Mr. Ashok Bannerjee, Flipkart which was published

by Yourstory.in. We also have our faculty member Mr. Rishi Kesava

Ram Velure who has written a book review of the all famous

management book The Toyota Way .

Our association with Jaipur Rugs has now advanced a stage. Pratibimb

will now partner with the Jaipur Rugs Foundation to sponsor t -shirts

to contributors of published articles. Not letting too much of the cat

out of the bag, let’s maintain the hint of anticipation. A second major

progress is that we will brusquely be distributing certiicates to

winners of various contests. The approved design of tees and

certiicates will be also released through our page on Facebook at

http://www.facebook.com/pratibimb.relecting.management . I urge

all readers to like the Facebook page to stay updated with the latest.

The hub of the page is not just the content from the magazine but also

trending articles from diverse sectors of management.

Lastly, we would like to thank all faculty members who have provided

their valuable feedback to help maintain the the standards we have

strived to attain. Also, send in your valuable suggestions or feedback

to [email protected]

Enjoy Reading!

~ Sushmit Sinha

Sushmit Sinha

Manish Mishra

Abhishek Dubey

Namrata Mahapatra

Divyanshu

Varun Anant

Abhishek Raghupungav

Aditya Bhat

Arun Stephen

Devi Kailas

Kannan Venkat

Pallavi Prasad

Rithwik Krishnakumar

Vandna Soni

Prof. Chowdari Prasad

Dean (Branding and Promotions) Prof. Vinod Madhavan

Asst. Prof. , Marketing

Prof. Srivatsa H S

Asst. Prof., Marketing

Prof. Vrishali N Bhat

Asst. Prof., Economics & Finance

Prof. Animesh Bahadur

Asst. Prof., Human Resources

Prof. Sanjay Choudhari

Asst. Prof., Operations

Prof. Mohan Kumar V

Asst. Prof., Systems

Editor in Chief

Branding & Advertising

Design

Creative & Cover Design

Communications

Sub-Editors

Publishing

Faculty Advisors

http://www.facebook.com/pratibimb.reflecting.management


mailto:[email protected]







Contents Functional Beverages : Industry Analysis

7 by Divya Bhatia, Welingkar, Mumbai

Flash Mob — Prospects as an Exploitable Promotion Strategy 11

by Ambili Jayachandran, University of Kerala

Below the Line Advertising and the Changing Trends in Advertising 14

by Shashank Srivastava & Sarbaswarup Mohanty, IIM Lucknow

Interview : Mr. Prakash Dadlani 17

Country Head, Marketing Excellence, 3M

Interview : Mr. Ashok Banerjee 19

VP Supply Chain & Data Platform, Flipkart

Book Review : The Toyota Way 21

Prof. Rishi Kesava Ram Velure, Faculty Associate, Healthcare, TAPMI

Riding the Technology Wave 23

by Shreesha Ramdas & Harish Reddy

Yellow Metal, Yellow Fuel causing Economy Blues 25

by Vibhu Gangal, SCMHRD

Neuromarketing : The power of the subconscious 28

by Pramit Das & Subhamoy Ganguly, IMT Ghaziabad

Indian Corporate Bond Market 32

by Siddharth Pal, IIM Rohtak




Functional Beverages:Industry Analysis

by Divya Bhatia, Welingkar Institute, Mumbai

INTRODUCTION

The first functional beverage which was launched was

to hydrate the body. But today large numbers of

functional beverages are available for various lifestyle

problems ranging from anxiety to sleep to weight lossetc. Coca Cola‖s Shock and Red Bull were the early

entrants in the industry and are the ones who give

chance to late entrant to think about the industry.

Functional beverages can be defined as ready to drink

formulation with ingredients such as herbs, vitamins,

minerals, amino acids and raw fruits to provide

additional health benefits beyond nutrition. Various

products which are categorized as functional

beverages are sports drinks, energy drinks, ready to

drink tea and coffees, yoghurt, fruit/vegetablesmoothies and even enhanced water. These functional

beverages satisfy need of consumers of hydration,

energy, enjoyment or simply having fun.

The global functional beverages market grew by 3% in

2010 to reach a value of $48,186 million. In 2015, the

global functional beverages market is forecast to have

a value of $62,151 million, an increase of 29% since

2010. Projections for functional beverages are that

market will grow by 103% in between 2010 and 2015

and total annual sales exceeding $78 billion in 2015.

The Indian functional Beverage Industry was

estimated to be around Rs 11,159 crores in 2010 with

a CAGR of 21% in the last five years. It is expected that

the industry will cross Rs 19,000 crores sales in 2015.

Functional beverages are becoming popular due to

their specific health benefits and are appealing to

consumers because of changing lifestyles. Consumers

purchase these products for both convenience and

specific health benefits.

FUNCTIONAL BEVERAGE INDUSTRY

Functional beverages sector can be said to be

subsector of non-alcoholic industry and is fastest

growing sector. The faster growth of sector is also

because of saturation of market by carbonated drinks.

The industrial trend is changing; the consumption of

carbonated drinks is decreasing while that of

functional beverages is increasing.

The industry can be broadly divided into four

market segments :

Hydration :

Antioxidants, vitamins and fruit extracts are the

ingredients which hydrate both inner and outer

side of skin. The various vitamins commonlyfound in energy drinks for their specific benefits

are:

B vitamin: For energy metabolism

E vitamin: Has antioxidant property

C vitamin: To activate people

Gatorade is well known hydration drink for

athletes.

Energy and rejuvenation Red bull, Adrenaline rush, 180 and many more are

highly caffeinated and high energy drinks. These

drinks include stimulants such as taurine,

caffeine, sugars, anti-oxidants and creatine.

Although these ingredients are approved by FDA,




some health experts still say that all these

ingredients are not beneficial to health.

Health and wellness:

This segment is about the health conscious people. So

they have introduced less sugar and less caloric

beverages to target this segment.

Weight management Due to changing lifestyle there is an increase in

obesity and consumers are looking towards fast

and easy methods to reduce weight that can be

easily adopted for their lifestyle. So various calorie

burning beverages, metabolism boosting effect,

fat burning beverages are launched by companies

that go well with people convenience to reduce

the weight.

MAJOR PLAYERS

The players in this category are divided into four

types.

One is non-alcoholic beverages companies including

PepsiCo Inc. and Coca-Cola Co. Another type consists

of major food companies such as Nestle, Kraft food,

General Mills etc. The third group is small scaled

companies like local companies. Other segments are

traditional medicines companies products like

Patanjali products, Asaram Bapu products etc.

Various companies which are coming into new energy

drink segment are Dabur, Amul, Britannia, Danone

and Rasna. All these companies want to woo the

health conscious young Indian consumer. Even

traditional companies who never tried hands in such

products are also trying.

Dabur will launch beverages under real brand.

Amul Company has come up with Prolife lassee

and buttermilk,

Rasna is even planning to enter into the

segment with a new subsidiary. They are

looking for brand licensing and technical

collaboration.

Amway launched Amway XL energy drink which

comes in two flavors of citrus blast and tropical

blast. This product is launched as quick and

healthy solution to stress and fatigue.

ENVIRONMENT ANALYSIS

PORTER’S FIVE FORCES

PRODUCT

The functional beverages has wide range of product

like energy drinks, functional juice, juice drinks,

enhanced water, relaxation drinks, functional soy, rice

and almond-based drinks, coconut water, functional

tea, functional yogurt drinks and smoothies.

The products of functional beverages offer wide

variety targeting different health concerns. One major

product is hybrid drink with combination of vitamins

and other nutrients which has thirst quenching ability.

The other is probiotic or active drinks which have

ability to enhance the power of immune system. The

other is for enhancing memory and mental sharpness.

Children are also targeted by these energy drinks and

Nestlé‖s Boost is taking the lead in this segment.

The other categorizations of the products are on the

basis of sports drinks, health drinks, beauty drinks,

energy drinks, weight-loss drinks etc. In the energy

drink segment Red bull is growing considerably fast.

Dairy products are even extending themselves

to more than flavored milk. Various functional beverages which are

available in the market are Rhino's, Bullet,

Cloud 9, Amway XL, power house, XXX.

http://economictimes.indiatimes.com/topic/Rasna

http://economictimes.indiatimes.com/topic/Rasna




XXX has two variants Rejuve and Nicofix. SRK is

brand ambassador and even brand is

associated with KKR as principal sponsor.

Nicofix is formulated to decrease the urge for

nicotine and Rejuve is formulated to rejuvenate

mind and body and enhance immunity.

SoBe Adrenaline Rush which is priced at Rs 75

for a 245 ml can.

Coca Cola has a global portfolio of five energy

drink brands Vitamin Energy, Full Throttle Fury,

Powerplay, TaB Energy and burn (Shock's global

avatar).

GROWTH DRIVERS

1. There are various benefits of functional

beverages which interest consumer .

Consumers are interested in natural ingredientsand beverages which are free from artificial

ingredients. As a result this market has huge

attraction for people who are concerned about

health. Diet drinks are low in caloric content

and with less of sugar content. Some drinks

contain anti-oxidants. These drinks have

inherent energizing benefits of fruits and are

natural sources of caffeine. Market of functional

beverages is increasing because people have

been become proactive in disease prevention

and control.

2. Energy drinks used in combination with

Vodka : In some cases energy drinks can be

used to boost sales of alcoholic drinks or vice

versa. Due to high caffeine content energy

drinks are compatible with alcoholic drinks

especially like premium Vodkas. And another

important point is that both energy and Vodka

are targeted to consumers around thirty years

of age.

3.

Energy drinks are good source of energy without providing excessive calories and sugar.

A majority of Indians are now becoming aware

about malnutrition and under nutrition. They

are looking for convenient source of energy and

functional drinks are fulfilling their need.

CONSUMER PROFILE

Typical consumer of functional beverages is well

educated, in between 25-45 years old, having highly

disposable income, belong to upper middle andmiddle class. Females consume or try functional

beverages more than males.

These consumers are willing to try something new.

Companies are trying to surprise them by coming up

with new products. Surprise can be in form of color,

taste and aroma of product. By surprising customers

the purpose of companies is that consumer won‖t get

a chance to compare product with cola or juices.

Large consumption of functional beverages is due toperceived health benefits of product.

CHALLENGES BEING FACED

1. Energy drink segment still remain a new

category with only few established players such

as Red Bull, Cloud-9, Power Horse and Sobe.

2. High price of these drinks are concern for the

company.

3. Food and drug administration (FDA) regulation

due to high amount of caffeine in some of thedrinks.

4. Health concerns are associated with drinks. As

some of these drinks contain large amount of

sugar and caffeine which thus increases caloric

intake and further increase the case of heart

attack, blood pressure and other heart risks. As

heart rate automatically increases after

exercise, so consumption of energy drinks may

further increase it. High sugar content increase

the chance of dental carries. Concern is there

about consumption of these drinks in large

amount. Some of these drinks are even found

to contain carcinogenic substances. Various

health experts claim adverse reaction using

these energy drinks.

5. The popularity of sports drink is limited to

sports people. Sports drinks are used only by

sportsman before and after performance.

Challenge is to make its presence on casual

basis.

6.

Though energy drink are more famous thansports drinks. Their popularity is among night

clubbers, long distance drivers or by people

after working long hours.

7. There is consumer distrust on the claims made

by the beverages.

8. Competition from beverages which are much

lower priced than functional beverages.

9. Some energy drinks have been reported to be

misused by college students because of high

content of caffeine in them.

FACTOR FOR SUCCESS OF FUNCTIONAL BEVERAGES

Product: Drink must taste good and have element of




something new in it. Packaging should be attractive

enough as these drinks are single serving beverages

so people want to get notice when they are

consuming these drinks. User must feel that product

works. All the claims behind the product must be

proved by scientific study and have evidence of

testimonies.

Price: Product should be launch in small packs at less

price. NourishCo launched glucose-based drink “Tata

Gluco Plus” in a 200 ml cup priced at Rs 6 and

launched nutrient water under “Tata Water Plus” at Rs

16 for a 750 ml bottle.

Place: Product should be available at all retail outlets.

Some of the products launched by companies are only

available in night clubs etc.

Promotion: These drinks are promoted with benefits

such as healthy heart, improved immunity and

digestion and energy boosting. Brands need to focus

on mass segment. Product can be promoted by

sampling in the modern retail where consumers are

more receptive to product.

Competition: A clear differentiation of one‖s product

from the competitor‖s product is there in term of

ingredients and their health benefits. As the segment

is continuously increasing the companies areexploring new areas of industry.

WHAT’S NEW

Energy drink segment is increasing where as natural

juices segment is decreasing. The growth of energy

drink segment has increased even during the

recession. What is noticed that segment is fairly able

to maintain its consumer base but is not able to add

more of consumers. More than 800 sports and energy

drinks were launched in 2010 all over the world.

Protein drinks are also much in demand. These drinks

are targeting to consumer looking for basic nutrients

such as protein and fiber. These products reduce the

weight while maintaining the general lifestyle as these

is convenient on-the-go snack. The problem with this

segment growth is that people still think that drinks

cannot be good source of protein. Protein can only be

provided by bars and powder formulation.

Traditional products with ingredients such as caffeine,

vitamins, herbs and anti-oxidants are replaced by

ingredients such as protein, omega 3 fatty acids.

Range of products has broadened to sugar free,

caffeine free and organic products.

The companies are launching products with less of

caloric contents while retaining the same taste of

products. Pepsico introduce Pepsi Next, which has

same taste as of original cola but caloric content is

decreased in product. Pepsico also launched Trop50.

Other line of extension is natural teas. Thesebeverages are simple with all natural ingredients.

Beverages companies are pushing their functional

beverages along with increasing consumer demand.

FAILURES

Coke came up with energy drink Shock which was

positioned as lifestyle drink in 2001 with tagline

―unleash your wicked side”. The product was not able

to produce good market response. Similarly PepsiCo's

energy drink SoBe, GlaxoSmithKline Consumer

Healthcare's sports drink Lucozade and Tata Global

Beverages's tea-based wellness drink T!ON are not

able to generate good response in market.

The reasons behind these failures are pricing and

most of foreign companies have launched their

product as such without any local customization.

Gatorade which was initially introduced in Indian

markets at price of Rs. 150 but now product is

manufactured in India only and is available at price of

Rs. 30 only.

Other drink launched by coke is burn which is high

caffeine drink and available in three various sizes

250ml, 300ml and 500 ml cans. The product is made

not to be mass distributed through various retail

channels, but product will be available in pubs,

selected modern outlets, gym etc.

FUTURE OUTLOOK/RECOMMENDATION

Relaxing drinks have to look for negative claims and

FDA regulation in this segment of beverages.Thecontent of caffeine, sugar, other health supplement

etc in most of drinks amount need to be regulated, as

excess of everything is bad whether it is health

supplement.

References

Business wire India

Nutraceuticals World

Foodlink US, Volume 7, N0-4

Wikipedia




Flash Mob — Prospects as

an Exploitable Promotion

Strategy by Ambili Jayachandran, University of Kerala

Introduction

Guerrilla Marketing was discovered in the late 1970‖s.

Till then the aim of marketers was to sell the productby creating awareness about it. Advertisements

adopted the push strategy by bombarding the

customers with information about the product,

through all Medias available. This was successful in

the initial years but later on it lost its effectiveness.

Advertisements did educate the public but failed to

engage or entertain them. It was in 1984, through the

publishing of his book, that Jay Conrad Levinson gave

Guerrilla Marketing its form, definition and

recognition. He describes Guerrilla Marketing thus:

"I'm referring to the soul and essence of

guerrilla marketing which remain as always --

achieving conventional goals, such as profits

and joy, with unconventional methods, such as

investing energy instead of money.”

All that it needs is to think out of the box and have

loads of creativity. It is not preachy or educational but

actually makes the viewer surprised, entertained and

even part of the campaign. The more creative the

campaign is the more attention it captures.

Picture 1:- This is one of the simplest examples of

Guerrilla Marketing and may be the cheapest.All it would have taken for Nestle is a can of

paints, and of course permission from the city

corporation, to market this product.

It is not necessary that Guerilla Marketing to be used

only for commercial purposes.

Picture 2:- When garbage dumping became a

problem, the Auckland City Council

replaced the regular black rubbish bag

into a bushy hedge, sending a

message in itself .

The main success of this marketing strategy is that it is

useful for small business enterprises with small

budgets, to market or promote their product. In the

words of Jay Conrad Levinson, “Guerrilla marketing

has been proven in action to work for small

businesses around the world. It works because it's

simple to understand, easy to implement and

outrageously inexpensive. Guerrilla marketing is




needed because it gives small businesses a

delightfully unfair advantage: certainty in an uncertain

world, economy in a high - priced world, simplicity in a

complicated world, marketing awareness in a clueless

world .”

Many companies, small or large have used thismarketing strategy and have achieved a great

response in the form of increased sales and market

share in many countries. It is still used widely but not

as frequently, relative to other forms of advertising or

promotional strategies.

Guerrilla Marketing takes different forms such as

Graffiti, Sticker bombs, Flash Mobs and anything or

everything creative.

Flash Mob

Suppose you are in a mall and suddenly regular

shoppers (or so) come together and do something out

of the blue, don‖t be shocked. You are witnessing a

flash mob. They might dance, sing, do a tableau or

simply do something together in perfect sync and

disperse into different directions once the act is

complete. This is done either as an advertisement

campaign, as a social awareness act, as a protest or

for entertainment.

Picture 3:- Hundred actresses got dressed as

Maria Bello's Jane Timoney character

in the rookie NBC drama in Canada to

market this U.S. network series.

The first flash mob took place in 2003 in New York

Macy‖s, where hundreds of people entered a store

searching for a “love rug”. The first flash mob in India

took place in Mumbai‖s Chhatrapati Shivaji Terminus,

a day after the third anniversary of 26/11. Shonan

Kothari organised this flash mob as a tribute to the

victims of the terror attack. She was successful in

getting permissions from the Mumbai police as well as

the railway authorities and most importantly, bringing

in two hundred youngsters to practise and dance

together for ten minutes. The commuters were taken

by surprise and this was what the mob wanted out of

their performance.

Even though India has gone through a lot of development, majority of the public are very

conventional and traditional. They are new to this

concept and might take some time to accept it whole -

heartedly. Still, this phenomenon has been taken up

and performed in various parts of India such as,Noida, Vishakhapatnam, Vadodara, Kochi and

Hyderabad. It is safe to say that Flash Mobs are

rapidly gaining popularity and acceptance.

Picture 4:- Flash Mob at Mumbai‖s Chhatrapati

Shivaji Terminus, a day after the third

anniversary of 26/11

“It‖s the new rage. It‖s fun, it‖s entertainment and it‖s

an effective vehicle for social messages.” This is how

Neha Malude described Flash Mobs in The Hindu‖sSunday Supplement “Magazine”, published on June 17,

2012.

Current Market Condition

India has a highly competitive market where there are

many enterprises selling the same or similar products.

Consumers are rational and have full access to

information about products (with the advancement of

technology and Internet). So, it has become an

absolute necessity for enterprises to satisfyconsumers for their survival. In such a scenario, the

only way in which a firm can have a fair market share

is by creating product preference or loyalty. This can




be done by increasing the product utility and backing

it up with heavy advertising and promotional

strategies. Almost all promotional strategies have

become common and are slowly losing its

effectiveness in catching the attention of the public.

As mentioned earlier, advertisements only educatethe consumers and fait to engage or entertain them.

This is where companies can utilise the concept of

Flash Mobs, which has already started gaining

popularity among the crowds. Flash Mobs have been

successful as a social vehicle for spreading social

messages; in other words, they have been able to

draw attention. So this could be the new promotional

strategy which can be exploited by different firms.

Prospects of Flash Mobs Being an Exploitable

Promotional Strategy

Flash Mobs seek fun and get it too. So participation

can be ensured; but the main task is to manage or

coordinate them. This of course, is not a Herculean

task keeping in view that there are people like Shonan

who have been able to gather, manage and co-

ordinate a two hundred member flash mob and turn

it into a huge success.

On the flip side, Flash Mobs are performed in metros

and malls. This is comparatively a very small portionof the target market. If a company takes up flash mob

as its marketing strategy, it may not get the coverage

that a mass communication media such as a

Television or Radio would. There might be a little

amount of work to do such as getting permissions or

paying rent for the space used and even the mob (if

the concept gets wide acceptability then the mall

authorities might also try to exploit the same).

Most important of all; is its acceptability itself. It is too

early to say if “Flash Mobs” are a fashion or a fad. Thedifference is that, fashion may stay for a long time but

fad ends as soon as the novelty of such a

phenomenon fades.

Picture 5: - Fashion Picture 5:- Fad

Conclusion

Flash Mobs are new in India and have become the talk

of the town. It has definitely created popularity. The

concern is whether it would gain acceptability in this

traditional society. If it does, it could be the next

promotional strategy exploited by companies to

market their products. Being the most cost–effective

(in comparison to other marketing strategies), at thesame time crowd-engaging phenomenon, its ability in

promoting a product is almost undisputable. It has

created positive results as a social vehicle in India, it

still needs to be seen whether it would do the same as

a promotional strategy.

References

Philip Kotler, Gary Armstrong, (2008),Principles of Marketing, Pearson Education,

Inc, Twelfth edition.

Jay Conrad Levinson, Michael W. McLaughlin,

(2005), Guerrilla Marketing for Consultants,

Breakthrough tactics for Winning Profitable

Clients, John Wiley and Sons, Inc.

Neha Malude, The Hindu‖s Magazine, Weekly

Edition, Sunday, June 17, 2002 issue.

http://www.ndtv.com/video/player/news/watch-

flash-mob-in-mumbai-wows-commuters-at-

cst/217228

http://urbanpeek.com/2011/06/10/flash-mob/

http://www.hollywoodreporter.com/news/nbc -s

-prime-suspect-promoted-239161

http://weburbanist.com/2008/06/03/the-history

-of -guerrilla-marketing/

http://en.wikipedia.org

http://www.proprofs.com/flashcards/

cardshowall.php?title=ksu-marketing-400-quiz-2

http://www.ndtv.com/video/player/news/watch-flash-mob-in-mumbai-wows-commuters-at-cst/217228






















http://www.hollywoodreporter.com/news/nbc-s-prime-suspect-promoted-239161












http://weburbanist.com/2008/06/03/the-history-of-guerrilla-marketing/










http://en.wikipedia.org/


http://www.proprofs.com/flashcards/cardshowall.php?title=ksu-marketing-400-quiz-2

























Below the Line Advertising

and the Changing Trends in

Advertising

by Shashank Srivastava & Sarbaswarup Mohanty, IIM Lucknow

In a market rapidly adjusting to changes in

technology, available information and heightened

consumer demand, traditional and brand oriented

advertising is no longer the primary driver of customer behaviour. Its reflected in the dwindling

print newspaper circulation and the stagnant market

of network television commercials, focus of marketers

has now shifted from an “above the line” focus on

reaching a broad population with emotionally

oriented appeals , to a “below the line” approach that

stresses targeted customer centric communications

and concrete returns on investment.

Below-the-line methods are very specific, memorable

activities focused on targeted groups of consumers.

They are under the control of the organisation. For

example Kia Motors uses these techniques to target

clearly defined consumer groups rather than a mass

audience like its above-the-line activity. The purpose

of these activities has been to develop the brand by

creating awareness and building a brand profile.

Below-the-line methods include:

Sponsorship

Sales Promotions

Public Relations

Personal Selling

Direct Marketing.

CHANGING TRENDS IN ADVERTISING:

Consumers are faced with a barrage of

advertisements every day in their lives. People are

starting to lose interest and even despise the mass

advertising being followed through traditional

channels of mass advertising like – TV, radio,

newspapers, magazines, etc. Consumers are usingtechnology to counter the entry of ads into their

personal lives.

TV viewers are resorting to digital video

recorders and on demand technologies to fast

forward through advertisements.

Some people use mobile devices to download

commercial free versions of popular televisionshows.

Internet users are using software to block spam

and popup advertisements.

Marketers have been tempted to follow one to one

advertising or targeting niche customers. But the

practice of targeting “niche” customers can prove to

be costly for organizations.

Sometimes also the costs of advertising are more thanthe costs allocated in the budget for promotional

purposes.

Four specific techniques have been identified where

marketers can reach broad segments of people

without overshooting their advertising budget.

Catching people in the bottlenecks: Though people

can easily screen advertisements when they are in

their homes but people every day spend time outside

their homes where they lack the required control. Theexamples of bottlenecks can be – waiting in an airport

lounge , travelling in elevator , going up in an

escalator in a mall or it can be travelling in a taxi. In

these bottlenecks of life, advertisers can reach people

with acceptable messages.

The purpose of advertising on taxis for advertisers can

be many. The taxi owner gets revenues from space

which could not have been utilized for a better

purpose. And the advertiser gets better visibility sincethe taxi can roam from place to place with different

customers aboard. This can prove to be beneficial for

marketers than billboard ads which are fixed and




whose effectiveness depends on the billboard

location.

Also on elevators, companies have installed a wireless

digital screen which broadcasts short news andentertainment programs. The recall rate increases

with frequent travel. Mastercard provided

complimentary snacks, movie headphones , puzzles

and games to travellers on American Airlines and the

flight

attendants publicized the benefits. Even seats on

aircrafts and taxis in developed countries are fitted

with small screens which displays ads and for

consumers using the means of transport, they can‖t

avoid it altogether. Companies have also advertised in

public restrooms and toilets.

Using a Trojan Horse: The concept of “sneaking” ads

is familiar with product placement in films,

television programs and even in video games today.Considering the example of “coffee cups”, Millions of

office goers use insulated coffee cups everyday during

office hours at their desks or in board room meetings,

etc. Normally the companies won‖t allow advertisers

to advertise to people inside the office, but the

concept of placing small ads in the coffee cups helps

in gaining visibility for marketers without burning a

hole in their pocket.

Other unique ways can include advertising on pizza

boxes, or advertising on pay checks in restaurants

and deposit slips in banks or on the rear of an

airlines ticket.

Also recently garbage truck advertising has come to

the fore. The municipalities can get revenues from

unused spaces on trucks and companies on their

parts get huge unused places to advertise.

Advertising on Garbage Trucks

FedEx Ads on Coffee Cup




Use of Mahindra Flyte in 3 Idiots

Omega watches in Bond Movies

Targeting People at play: People generally don‖t like

to be bothered when they are vacationing or doing

some leisure activity like playing golf. But advertisershave realized that giving people something they can

use is a more thoughtful approach to brand building

than the tactic of pushing more and more messages

when people are glued to the television or computer.

Since this kind of advertising doesn‖t disrupt the

people‖s activities it is seen as less intrusive for

people.

For Example: Golf Carts are being fitted with GPS

systems. Ads can be placed and shown in the GPS

system when player is moving from one hole toanother hole. In Hotels, People can be given trial kits

of Razors, toothbrushes or body wash of some

reputed company like Gillette or Oral B.

Getting people to play interactive games:

New technologies help marketers to interact with

consumers in public spaces without employing

massive sales teams. For example: Nokia when it

launched its 3300 model contributed a quarter of its

advertising budget on interactive posters. An Adidas

Ad replicated a virtual football field whereincustomers could play by passing a virtual ball to each

other.

Many people interviewed after these experiences

were enthusiastic about the whole process which

included fun events and planned to tell others about

it.

Hence in the above examples we have seen how the

focus of marketers is shifting from the traditionalmodes of advertising to the other newer modes of

advertising. Also direct mails, print response ads and

telemarketing are coming up in a big way to open up

new avenues in advertising and leading to heightened

competition among companies.

REFERENCES:

Nunes Paul F. & Merrihue Jeffrey, “The

Continuing power of mass advertising”, M.I.T.

Sloan Management Review

Paper on – “Tracking the trends : A comparison

of Above the line and Below the line

Expenditure trends, V12 group & Winterberry

Group, 2006

http://businesscasestudies.co.uk/kia -motors/

using-sports-marketing-to-engage-with-

consumers/above-the-line-and-below-the-line-

promotion.html

http://www.business-standard.com/india/news/

belowline-advertising-onroll/339587/

http://businesscasestudies.co.uk/kia-motors/using-sports-marketing-to-engage-with-consumers/above-the-line-and-below-the-line-promotion.html































http://www.business-standard.com/india/news/belowline-advertising-onroll/339587/


















Mr. Prakash Dadlani Country Head, Marketing Excellence, 3M

TAPMI had an opportunity to interact with Mr.

Prakash Dadlani , Country Head, Marketing

Excellence at 3M . In an exclusive interview with

Sushmit Sinha and Aditya Niyogi for Pratibimb , Mr.

Dadlani shares valuable insights on Branding which

would strike a chord with any Marketing student.

Excerpts: [The views expressed are his personal and not the views of 3M or any other organization he has

worked for]

In the balance between master brands and sub

brands – what are the key factors that a manager

must take into consideration while coming up

with new products? What are the associated risks

and advantages?

A very important question that should be asked by

any Brand Manager to his Marketing Head at a very

early stage of branding a new product. The call needs

to be taken in sync with the values of the Master

Brand and the upside or downside the product

positioning can cause to the Masterbrand and indeed

to the product itself.

In most cases the Masterbrand and Product would

benefit from an association, but the degree of

association should vary depending on the exact

current positioning as understood by customer

research and not the 'feelings' of the brand team.

How does Asian and Indian style of innovation

differ from the western trends? How are products

tiered as A, B and C?

The basics remain the same as to the process of

innovation, which begins at the customer and ends

with the customer. Sometimes macro trends play a

huge role in identifying trends which the customer

may not relate to today, but these are picked by sharp

observers of Consumer Behavior and Tech experts

who begin preliminary work on them and then check

with consumers.

Traditionally Asian and Indian techniques and

methods would follow the West, but now the trend of

'frugal innovation" seems to be originating in India

and then going back to other countries including

some Western ones. Here the traditional Bottom of

the Pyramid approach has worked well for some

companies. Here too, however, the entire mix, i.e.,

manufacturing, route to market, marketing and sales

support have to be in line with the tier under

discussion to make it a viable and sustainable option.

Let’s say a gap has been identified to launch a

prospective product, what are the basic criteria

that we should evaluate be we go ahead with the

development?

The capability of the organization to make ROI is

primary. Hence, it needs to fit the criteria of the

support required in all the above aspects important

for the product to reach and sustain in the market.

What are the challenges involved in sustaining a

highly innovative culture?

Not easy to give a single answer, but allowing a

certain time for people to devote to a project of their

own choice, promoting diversity in terms of

educational background and qualification, interaction

with other industries, institutions and a meaningfulreward and recognition platform.

INTERVIEW




How can a brand strategy be aligned with a

company’s business strategy?

There‖s is no option but to make the brand strategy a

driving force for business strategy. For that the

definition of 'Brand' has to expand to include all thetouch points of business, Brand is something all

functions, HR, Finance, Sales, Supply Chain, all help

build and hence they need to analyze which of their

actions impact Brand and hence business and work

on those actions

What is the test of a successful brand awareness

campaign? Are there relevant metrics that can

reflect its performance to help in brand strategy?

Traditionally we have limited this discussion to Brandawareness only, however the better measures are the

quality of brand recall, whether the relevant and

desired attributes have set targets and how they fare

over a period of time, setting targets to those

attributes in sync with the brand positioning and

measuring them in conjunction with the sales

performance can help understand the impact of

Brand on sales over a period of time. Along the period

of time, mapping of ad campaigns, sales promos and

external factors will help clarify the impact of brand

vs. other factors

How can B-school grads maintain a competitive

edge in marketing when they step into the

industry?

Interaction with Industry in a proactive basis is the

only way to achieve this. At such interactions both

industry and the B school both get the benefit.

Summer Internship is another good area where

students can come in touch with reality.

In many companies technical team, production

team and finance team/purchase team are given

individual targets. Often the goals are conflicting,

with production team wanting a better product

and purchase team aiming to reduce cost. Under

such conditions what approach do you suggest a

sales person take?

There are various mechanisms to tackle it. The most

common one is creating of cross functional teams.Over a period of time the teams understand each

other‖s pain points and evolve into a close knit unit.

Having a cross linked goal sheet like a Balance Score

Card or a Hoshen Kaniri System also helps.

In today's market, innovation obsolescence is high

compared to previous decades. How can

companies make buyers adopt their product at a

premium on a sustained basis?

The basis of any product has to be the satisfaction of agenuine need of a customer. This need may be a felt

need or otherwise. Till the time this is the case a

company can get a decent ROI.

Often new technology in not adopted either

because people do not wish to re-train or they are

uncomfortable with new technology. Does "Client

Education programs" yield benefits?

Client education is an important element of the Value

Selling concept and there is no way this can beavoided. In fact this is a service many clients seek

form their suppliers as a given. The real benefit is

actually when some companies pay their suppliers to

train their larger organization.




Mr. Ashok Banerjee

VP, Supply Chain & Data Platform, Flipkart

It‖s not often that you come across a person who‖s had

experience working with the biggest and hottest

companies across the globe – Oracle, BEA Systems,

Google, Twitter and now Flipkart. Meet

Ashok Banerjee, a data scientist who is currently the

VP of data platform and supply chain at Flipkart. More

of a personal decision of moving back to India fromthe bay area, Ashok had offers aplenty but he chose

Flipkart primarily because it is the most promising

company in India that is on an exponential growth

curve. We got in touch with Ashok to learn more

about what excites him as a data scientist and the

cultural differences of working with great companies

across the world.

YS: Hello Ashok, you have a very interesting

profile! A mechanical engineer who did his

masters in Computer Science and went on to

become a data scientist; how did that happen?

AB: Yes, it has been an amazing ride. Doing my

graduation in mechanical, I realized that I liked the

mechanics part of what I was studying but not the

part which involved being on the shop floor and

putting in muscular power doing Smithy, Carpentry

and the likes. Mechanical engineering is definitely

much more than that but Computer Science had

always intrigued me. Even for my post-graduation, I

had a very memorable incident. I had to get a

research assistantship for paying my tuition fees.

Having a different background, it was going to be an

uphill task for me but I did everything in my capacity

to get that place. I took a CS subject as an elective

which I topped and for the place of RA, I chased the

professor like anything! I waited for him for hours and

made sure my resume reached him anyhow; I even

flew in a paper plane version of my resume, through

his open office window to make sure he notices my

application.. And eventually I did land the role.

Persistence pays off.

YS: Wow, that’s quite a story in itself! After your

post-graduation, you went to Oracle and

subsequently Google and Twitter. How was thetransition?

AB: Well, Oracle was a prestigious job at that time and

it is what makes me proud. They wanted someone

proficient in CORBA and that is how I landed up there.

Oracle is a large organization and is very well

structured. BEA Systems which was a smaller

company taught me a lot. It had a much stronger

coordination and communication. Here I saw and

learned a lot from a really strong Management team.

Moving to Google was a very pleasant surprise! I wasamazed at how disruptive Google was and is. Some of

the best innovations in the modern age have come

from Google and it shows! The culture is just

phenomenal but one thing that I can point out as a bit

of a negative from a personal point of view is that

Google has a complete stack of its own. In my 4 years

Google changed and felt much more structured and a

larger company feel to it. Twitter was different as a

smaller company. It was still much more of a startup

and involved more pragmatic decision making around

INTERVIEW




costs/constraints and tradeoffs. Twitter is what made

me think about social networks, growth and

exponential growth. As a company grows

exponentially culture changes dramatically.

Employees joining at $2 billion valuation is very

different from someone joining it at $8 billion

valuation. As a company grows, communicationmodels change, the room for misinterpretation

increases as people know each other less. The growth

phase at Twitter was very exhilarating.

YS: Your role at Twitter was very interesting

indeed; “User Growth Initiative”. Tell us about it.

AB: User growth is all about experimentation and

recommendations specially for the new user. Where

should you place an element on the page, what colour

it should be and all such details are a part of it; and

these factors have importance to the customer. A user

may never return after the first interaction so if we

cannot connect the new user to interesting

personalized content he may never come back. The

first visit may well be the last. For example, take in

very few details from the user but make the most of it.

The first name, Last name and IP can tell you a lot!

First name gives the gender, last name gives the place

of origin and the IP gives the current location.Clubbing these, a lot can be known. These helps you

make targeted recommendations and helps you know

what a user might want. This is a glimpse about how

the “User Growth Initiative” goes on.

YS: Data is huge. And so is the hype behind it. Is

this validated?

AB: I think it is. The rate at which the amount of

information is growing in unimaginable; traditional

databases will be found lacking. Taking an example,number of pages are increasing , number of queries

are increasing but a person searching on google

would expect a result in less than 0.5 seconds.

Similarly on Flipkart the number of items we sell is

increasing the number of customers is increasing but

site must be equally performant and more

performant. The technologies start to become NoSQL

and custom systems.

YS: Okay. So, why Flipkart? Why did you decide to

make a move to India?

AB: There were multiple reasons for this. I had

personal reasons and desire to be closer to my

mother. I had heard a lot about the growth story back

in India and it excited me. I wanted to see a growth

curve and an even earlier stage than Twitter. Looking

at India, Flipkart satisfies the exponential growth great

technology and culture. This growth story is what has

lured me into Flipkart. I could have joined any other

company but I also wanted to be present at theHeadquarters because for any company, the HQ is

where the core work happens.

YS: So, how has it been at Flipkart?

AB: Oh absolutely fantastic. I was skeptic as to how

the work culture would be because this is the first

time I was going to work from outside the Bay Area

but it has panned out very well. Culturally, I think

Google, Twitter and Flipkart are very similar.

YS: What are your views on the startup ecosystem

in India?

AB: The ecosystem is still maturing and US has more

senior people.However the scarcity of senior talent

also opens up bigger, bolder opportunities for those

who are ready and willing to step up.

We at Yourstory.in would like to thank the organizers

at the Fifth Elephant Conference where we first met

Ashok. We wish Ashok all the best for his new stint

with the poster boy of India‖s startup ecosystem,

Flipkart and hope for many good things to come.

http://cloudstory.in/2012/07/the-fifth-elephant-a-conference-on-the-big-data-ecosystem-in-india-27-28-july-bangalore/






The Toyota Way

by Prof. Rishi Kesava Ram Velure, TAPMI

The Toyota Way unleashes the exclusive 14

Management Principles followed in the world‖s

largest automobile manufacturing company, TOYOTA.

Liker has succeeded in describing the blue print of

Toyota‖s management philosophy in a well defined

manner. The author acknowledges his 20 years of companionship with Toyota to authenticate his work.

He elaborated the understanding of cross cultural

management learning and openness of Toyota to

share its source of competitive advantage with the

rest of the world, which is highly laudable. It

highlights the holistic approach of considering all the

elements as a part of system and consistent practice

of organizational principles across the company

irrespective of the geographic location. The author

was successful enough to present the practical

application of lean thinking and lean production along

with various workplace systems.

The book is divided into three major parts in which,

the first part deals with the uniqueness of the Toyota

Way. In this part, the author explained how the

Toyoda family succeeded in differentiating themselves

from the rest of the world through their Toyota

Production System (TPS). The second part is critical,

dealing with the basic principles of the Toyota Way. In

this part, the author has divided all the 14 principlesinto four sections and explained them in detail.

Finally, in the concluding third part the author

elucidates the application of the Toyota Way in an

organization in making it a lean learning enterprise.

Here, he describes building and transforming a

service organization by burrowing the Toyota Way.

Part I: Using Operational Excellence as a Strategic

Weapon

To simplify, the author has classified all the 14

principles in to 4 categories, namely Philosophy,

Process, People/ Partners and Problem solving

(constitutes the “4P” model of the Toyota Way)

correlating to the Toyota‖s terminology of Challenge ,

Kaizen , Respect, Teamwork and Genchi Genbutsu . This

is the foundation for the Toyota Production System(TPS) founded by Taichi Ohno, is often known as

“Lean” or “Lean Production”, the core principles being

jidoka and One-piece flow. Asking the question “what

does the customer want?” is the way TPS gets started.

And, eliminating the eight wastes is the heart of the

TPS, which are Over-production, Waiting (Time on

hand), Unnecessary transport or conveyance, Over

processing or incorrect processing, Excess inventory,

Unnecessary movement, Defects and Unused

employee creativity.

Fujio Cho, a disciple of Taichi Ohno developed a

simple representation of TPS in the form of “TPS

House” which depicts the two pillars of Just -in-Time

(JIT) and Jidoka with a strong foundation of Visual

Management, Stable and Standardized Processes,

Leveled Production (heijunka) . And, the roof is made

of Best Quality, Lowest Cost, Shortest Lead Time, Best

Safety and High Morale. Waste Reduction, Continuous

Improvement, People and Teamwork are integral part

of the house which runs the entire system, implyingTPS is not just a tool kit but management philosophy.

And, former President, Shoichiro Toyoda gives the

three C’s of Toyota company as Creativity, Challenge

and Courage, in the development path-breaking

model ―Prius‖ in 15 months time, which is an industry

record.

Part II: The Business Principles of the Toyota Way The first section is about Long-term philosophy

(principle 1) highlighting the guiding principles of

BOOK REVIEW




Toyota Motor Corporation, which include Honor,

Respect, Dedicate, Create, Foster, Pursue and Work.

The author has brought out the uniqueness in the

mission of the company to create constancy of

purpose and place in history with three exclusive

elements of contributing to the economic growth of

the country, contributing to the stability and well-

being of team members (internal stakeholders) and

contributing to the overall growth of Toyota.

The second section enumerates how right processes

will lead to producing the right results through

creating continuous process flow to bring problems to

the surface (principle 2), where the author explains

takt time and One-piece flow. Using “pull” systems to

avoid over-production (principle 3) elaborates on

Kanban system. Leveling out the workload- heijunka

(principle 4) discusses the three M‖s (Muda-

waste,

Mura- Unevenness, Muri- Overburden). Building a

culture of stopping to fix problems, to get quality right

the first time (principle 5) deliberates on jidoka.

Standardizing tasks are the foundation for continuous

improvement and employee empowerment (principle

6) emphasizing the need for enabling bureaucracy

and standardization as ―Enabler‖. Using visual control

so no problems are hidden (principle 7) describes

application of five S’s (sort, straighten, shine,

standardize and sustain) and A3 reporting. Usingonly reliable, thoroughly tested technology that serves

your people and processes (principle 8) signifies how

a new technology must support people, process and

values on adoption.

The third section is about adding value to the

organization by developing your people and partners.

Growing leaders who thoroughly understand the

work, live the philosophy, and teach it to others

(principle 9) impressing on the leader‖s view of TPS

with people through Technical, Management andPhilosophical dimensions and the interesting Toyota

leadership model. Developing exceptional people and

teams who follow your company‖s philosophy

(principle 10) explains typical Toyota assembly

operation and holistic approach towards employee

motivation. Respecting your extended network of

partners and suppliers by challenging them and

helping them to improve (principle 11), demonstrates

mutual learning and supply chain hierarchy at Toyota.

The last section of part two, discusses continuoussolving of root problems driving organizational

learning, by going and seeing yourself (principle 12)

to thoroughly understand the situation (Genchi

Genbutsu) . Making decisions slowly by consensus,

thoroughly considering all options, implement rapidly

(principle 13) describes, empowering junior

employees to take decisions slowly by consensus and

implement rapidly (Nemawashi) , Deming cycle, and

alternative Toyota decision making methods.

Becoming a learning organization through relentlessreflection (Hansei) and continuous improvement

(Kaizen) (principle 14), explains about application of

five Why’s to identify the root cause for a problem at

the workplace and typical Toyota‖s seven step

practical problem-solving process. It emphasizes on

Process vs. results orientation: the role of metrics and

directing and motivating organizational learning

(Hoshin Kanri) - the Toyota‖s policy deployment

process. Thus, it concludes how the Deming cycle can

be applied at all levels of the enterprise.

Part III: Applying the Toyota Way in Your

Organization

This explains how to understand the reactions for lean

change and identifying problems in the flow of service

organizations. The author illustrates the success of

Canada Post Corporation (CPC) with repetitive service

operations. He further describes developing and

improving value stream maps through Kaizen

workshops with key indicators like the task time (TT),

time in system (TIS), and the value ratio of value

added to total lead time (VR). And, concludes with real

time examples of Northrop Grumman Ship Systems

Service Process Kaizen event and Visual Control of

Engineering at Genie Industries.

In the concluding chapter, build your own lean

learning enterprise, borrowing from the Toyota Way,

the author explains the importance and factors

influencing leadership “commitment to lean” journey.

He clarifies the myths and reality of TPS and the

difficulties in changing culture. Thus, the book ends

with 13 tips for transitioning your company to a

Lean Enterprise.




Riding the Technology Wave

by Shreesha Ramdas & Harish Reddy

When we started our company LeadFormix, we

resolved to not seek venture funding for product

development. However, we were open to the idea,

particularly for expanding sales and marketing at a

later stage. So, we started as a services company and

named it Outerjoin. Using the revenue that Outerjoin

generated, we evolved to become a product company.

Companies that have evolved from a similar path

include Rhapsody Networks which was sold to

Brocade, as well as Tibco. We started as Outerjoin in

2007 with three co-founders. By 2008, we started to

talk with Outerjoin customers to first test their

acceptance of a social media monitoring solution;

then we tried B2B analytics.

From B2B analytics, we created what‖s now known as

the Daily Leads Report. Our early success was an

indication that our business model could scale. Hence,

we sought angel funding. We were fortunate to get

early backing from the founder of Brocade (Kumar

Malavalli-http://en.wikipedia.org/wiki/

Kumar_Malavalli) who believed our ―intent algorithm

based‖ analytics had a strong value proposition. Once

angel funding was secured, we then focused on

building a customer base.

Soon, our customers asked us to add email and

workflow automation which made our platform useful

to marketers. Before we knew it, we backed our way

into what‖s now known as a “marketing automation”

solution and transformed it from a mere analytics

tool. We worked on developing our marketing

automation solution and launched it at the end of

2009.

It took until spring of 2010 before we were sure thatwe were competing in the marketing automation

space. By March of 2010, we started to run into

marketing automation competitors, and we started to

talk with CRM companies in order to integrate our

solution with theirs. Having transitioned from a start-

up, we set our sights on expanding our footprint and

moving towards establishing a market leadership. We

realized that it was time to seek venture funding in

order to expand marketing and sales and taking our

brand to the next level. Before long, CallidusCloud

swept us away. (http://techcrunch.com/2012/01/03/

calliduscloud-acquires-leadformix/)

http://techcrunch.com/2012/01/03/calliduscloud-acquires-leadformix/












AUTHOR PROFILES

Shreesha Ramdas, VP of Enablement,

CallidusCloud

Currently VP of Enablement at CallidusCloud,

ShreeshaRamdas was the co-founder & COO at

LeadFormix, a marketing automation 2.0 platform,

where he raised the initial funding, built the company

and contributed to the successful acquisition by

Callidus in January 2012. Prior to LeadFormix,

Shreesha was a co-founder at OuterJoin, an online

marketing services company that helped B2B and B2C

customers develop and execute effective online

marketing. Before that, Shreesha drove new business

development at Catalytic Software, where he was

instrumental in developing key accounts includingViacom, Countrywide and Orange. He has also held

key management positions at MW2 Consulting and

Yodlee, where he held the role of General Manager of

Yodlee‖s center.

Harish Reddy, VP – India Operations, CallidusCloud

Harish has a specialisation in Strategic Marketing, Paidmarketing, Media Planning, Search Engine Marketing,

Product Management, Channel management, Affiliate

Networking and Brand Management. Harish has

more than a decade of experience in brand and

marketing management, as well as a background in

sales. Prior to joining LeadFormix, he worked with the

Saud Bahwan Group as their marketing director and

before that held a key marketing position with Tata

Motors and was responsible for Tata‖s entry into the

branded public transportation sector. He holds a Post

Graduate Diploma in Business Administration, and a

Bachelor's degree in Engineering.




Yellow Metal, Yellow Fuel

causing Economy Blues by Vibhu Gangal, SCMHRD

The demand equation states that the aggregate

demand (and the national income at equilibrium) is an

algebraic sum of consumption demand, investment

demand, government expenditure and net exports.

The moment we say 'demand', it is backed by money

and indicates a destination where people roll out the

money they possess. If this money is spent to fulfill

any of these demands which add up to the national

income, it‖s a positive sign. The more this happens,

the more the country grows economically, the more is

the national income, the stronger is the home

currency. One scenario, where possession of money

with individuals of a nation can harm the economy, is

when the money possessed gets expended big time

towards imports, which makes net exports and overall

national income negative, leaving the investment

demand of the nation unquenchable. A similar thingseems to have happened in India. Let‖s take a closer

look at its causes and implications.

Consider an analogy, where we have a dam

constructed with an aim to irrigate fields. It has some

water collected in the reservoir. This water flows to

the fields through channels. Thus, it‖s the channels

which ensure that the water in the dam gets utilized

for growing crops and not for domestic purposes of

farmers' households. Had the channels being broken

and had the water been routed to households insteadof fields, crops could never have grown due to lack of

water and the production of the territory could have

taken a severe hit. The water is equivalent to liquid

rupee with the Indians, crops to the GDP, and

channels to the government regulations and policies.

In India, a major part of money (water) is spent in

buying volumes of gold by families (household

demand). If gold was available in India, the tendency

of buying gold would have created better circulation

of money and the multiplier effect would have done

well to the economy. Unfortunately, out of 902 tones

of domestic annual gold demand, India produces only

two tones and the rest 900 tones is imported.

More the demand for gold, more are its imports, more

is the payment in dollars, more is the influx of rupee

in forex market, more is the outflow of dollars from

forex market, more depreciates the rupee, moreexpensive becomes any imported item including gold.

This self -feeding spiral continues and raises ringing-

alarm-bells when it reaches a stage where RBI cannot

save the rupee by ad hoc workarounds like selling

dollars and "trying" (rather struggling) to induce more

FII participation.

Indians have imported gold worth $61.5 billion (or

around Rs 341,000 crore) in 2011-12, recording a

growth of 44.4 per cent during 2011-12. Same is the

case with petrol. A consistent surge in demandeventually causes the same vicious circle of events.

Together, gold and petrol are the biggest burden on

trade deficit and have worsened current account

deficit badly, causing the sharp decline in value of

rupee vis-a-vis dollar. The trade deficit during 2011-12

was recorded at $184.9 billion than $118.7 billion

during 2010-11 mainly on account of large imports of

fuel, gold & silver accounting for 44.4 per cent of

India‖s imports. Reports suggest that gold imports

contributed to almost one third of the incremental

rise in Current Account Deficit over the 2008-2011

period.

Directly, gold contributes 0.36% to inflation index.




Indirectly, it makes all imports including crude oil

costlier fuelling input costs for all industries ranging

from plastics to automobiles. If the input costs rise, so

have to be the prices of finished products. Eventually

it‖s the inflation which kicks off. The time lags between

rise in gold demand, rise in import prices and rise in

end product prices make the three events appeardisconnected to the general public and as the "safest"

option, we end up blaming the government without

any knowledge of ground level proceedings.

Arithmetically, every dollar reduction in international

oil prices translates into a cut in product price by 33

paisa. But every time the rupee depreciates against

the US dollar by one rupee, it translates into a

requirement to raise prices by 77 paisa.

Another aspect is, with booming inflation, with

industrial products being costlier than earlier, why

would a buyer in international market prefer buying

Indian expensive goods when the same is available at

a lower price in other countries? Together, with

imports already being discouraged due to sharp

depreciation of rupee, this fall in exports due to

inflation exacerbates the trade deficit causing further

decline in rupee value. It all gets again into the self -

feeding loop discussed above.

So, where do we break this infinite-loop of events

where every step, every action has a well justified

reason behind it? But somewhere, somehow you need

to break this to get things in place. Weakening or

breaking one block might give a temporary relief to

figures, but in long run, this would cease growth.

Instead, if every link in the chain is made to melt

down in terms of its prominence, it‖s just a matter of

time; the whole chain shall cease to be prominent.

What I wish to convey is instead of unplanned adhoc

and short-term steps like giving subsidies on fuel

prices and making efforts to attract hot moneysources, this nation needs to plan for a durable

strategy which would 'subtly' and 'indirectly' bring

about relatively stiff and lasting changes in the

economy. Here‖s what I mean to say…

Whenever individuals hold disposable rupee,

government should ensure that substantial part of

rupee gets either invested into banks, corporate

bonds, government securities and the share market or

it gets to quench 'domestic' consumption demand of

goods and services. Let‖s remember in a dam, it‖s thechannels which ensure the usage of water in desired

way and ultimately govern the production. Whenever

it‖s expected to have an enhanced liquidity among

individuals, it should be THE time for government to

make capital investment attractive. This would trigger

the multiplier to take effect and eventually translate

liquidity into growth. As far as demand for gold is

concerned, it can be discouraged by raising customs

duty exorbitantly. Buying gold should be made at least

half as tough as buying a scooter was in late 1980s...Even if the demand for gold reduces partially, this

would mellow down dollar appreciation and prevent

further damage.

On the other hand, the consumer which demands

gold and oil so excessively needs to understand that if

he chooses deliberately to intensify imports, he is

fuelling inflation to such an extent that he himself is

going to get in trouble. A major reason for S&P

indicating to downgrade India in terms of its

investment-grade rating was a drought of investment

opportunities in India. With Indian businesses

borrowing big-time from foreign sources, with other

events increasing imports and causing rupee to

depreciate, Indian borrowers will now pay more for

every dollar borrowed. With every firm borrowing

millions of dollars, the rupee loss is going to be

phenomenally huge and shall reflect on a cost -cutting

approach by companies' management which shall

also include a cut in salaries. Eventually, a self -check

on surge of gold demand can help prevent a numberof significant things.

Recently, after a lot of hue and cry on oil price hike,

the government declared a subsidy on petrol price. I

say why? As a long term plan, the government should

let the petrol price rise so that vehicular usage takes a

hit, even though the hit is marginal. Towns, where

bikes and cars are favorites for personal transport,

should be picked up and transformed into towns with

a quality mass public transport, quality in terms of

speed, frequency, availability, ambience,approachability, grievance handling mechanisms and

any and every aspect which makes mass transport

well-preferred and equal in status vis-a-vis individual

vehicles. This shall help in fading the rise in demand

for crude oil and so shall prevent the rest of the spiral.

One may say that it‖s the gold which facilitates loans

and so fosters investment. But one misses to note

that at the time of repaying the same loan taken

against gold, the value of the money repaid plummets

so much that the good done by the investment getsoffset substantially by severe inflation, the root cause

for the good and the bad being the same. One may

say that if investment in India is on a backseat, why




doesn't the government invest? But one misses to

note that it would be dumb on the government's front

to do so, as it is already burdened under a budget

deficit of 5.19 percent and any further disbursement

of money would widen it more. One may say that

subsidies on fuel shall be continued for some more

years as the inflation is cost-pushed and not demand

-

driven. But one misses to note that it‖s the demand

which drives the entire spiral discussed above and it‖s

the drive of this demand which ultimately coverts into

a cost-push inflation. Thus, it‖s high time now that the

administration of the nation gets into a patient and

consistent mission of correcting the fundamentals of

economy at a macro-level with an aim to bring about

a long-term change.

References:

Analogy of dam and liquidity (quoted in second

paragraph of article) referred from knowledge

sessions of a mutual fund firm.




Neuromarketing:

The power of the

subconscious

by Pramit Das & Subhamoy Ganguly, IMT Ghaziabad

“Now, my experience is that most of the time, people

have no idea why they are doing what they are doing”

—Clotaire Rapaille, Market Researcher and author

of “The Culture Code: 7 Secrets of Marketing

in a Multi - Cultural world”

Well, he is not alone. Malcolm Gladwell in his

celebrated book “Blink: The Power of Thinking Without

Thinking” (2005) draws on examples from fields of

science, sales, advertising, medicine and music to

accentuate his idea of “thin-slicing”- a concept that

some mental processes work rapidly and

automatically from relatively little information. Author

and marketing guru Martin Lindstorm‖s bestselling

book “Buyology - Truth and Lies About Why We

Buy” (2008) claims from his experimental studies that

subconscious mind plays a major role in people‖s

buying decisions. Psychologist Daniel Kahneman, 2002

Nobel Prize winner for Economics, in his book

“Thinking, Fast and Slow” (2011) throws light on the

ways in which we make choices—most often,

automatically and not necessarily in line with our best

intentions. The authors seem to be mystified while the

marketers still try to unravel the gap between the

consumer intention and action.

As said in a Forbes article, neuromarketing is about

making the intent-action gap visible in a consumer,

showing how different parts of the brain are made to

take part by cues such as branding (for example, Coke

vs. Pepsi) or by facing a spend-or-save choice between

whether to indulge for pleasure now or delay

gratification for some later date. While neuroscience

has been around for decades, it is only recently that it

became part of the marketing parlance.

Neuromarketing involves application of cognitive

neurosciences in the field of marketing and marketing

research. It uses a brain mapping medical technologyknown as fMRI (Functional Magnetic Resonance

Imaging) to study blood flow and blood oxygenation

in the neuron activity of consumers at the time of

selecting and buying a product. Though it started with

the application of neurosciences, over the years it

gained entry into the traditional methods of doing

marketing research. As research proceeded, it was

applied to promote sales and research organizations

such as BrightHouse Institute was set up to serve

corporations eager to reap the nascent developments

in the field.

The term “neuromarketing” was coined by Ale Smidts

in 2002, a marketing professor at Erasmus University

in Rotterdam, the Netherlands. But there is a more

interesting story about the public attention to the

term. Throughout the 70‖s and 80‖s blind taste tests

had shown that Pepsi was the winner when

consumers were told to choose between Pepsi and

Coke without knowing which one they wereconsuming. Dr. Read Montague, a neuroscientist, was

however intrigued by the fact that in spite of these

results, Coke dominated the market. Montague

decided to repeat the tests with fMRI in what was

known as The Pepsi Challenge, 2003. The results were

astonishing. He found that when blind folded,

consumers liked the taste of Pepsi but when the

names were revealed three fourth of them switched

loyalty to Coke. It was observed that the knowledge

that they were drinking Coke increased activity in the

medial prefrontal cortex, an area of the brain

associated with thinking and judging. The experiment

showed that while people liked something in their

subconscious brain they express something else. The

example became a classic to be used later on in

marketing case studies worldwide.

From The Pepsi Challenge, 2003 it was brought out

that brand and image could affect the customer‖s

choices more than the product. This encouraged

neuromarketers to use the neuroimaging techniques

to identify decision making triggers among shoppers

to help companies directly click the “buy button” on

http://www.smartcompany.com.au/neuro-branding/the-power-of-the-subconscious.html



http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/etc/neuro.html










the customer‖s brain to boost sales.

On 17th Feb, 2010 an article in the Wall Street Journal

carried the caption “The Emotional Quotient of Soup

Shopping”. It dealt with how the Campbell soup

company had applied neuromarketing techniques in a

two years study, intending to get consumers to buy

more soup. It drew a lot of public attention at that

time and encouraged debates on whether the studies

on skin moisture, heart-beat and biometric by

Campbell soup company was really worth it. In the

process, more than 1,500 subjects were interviewed

and tested using multiple methodologies—ranging

from traditional consumer feedback to

neuromarketing techniques. The same subjects also

participated in a deep interview process called ZMET

(The Zaltman Metaphor Elicitation Technique) whichhelped the Campbell's team to contextualize the

biometric measures that were used. According to the

company itself, the end results of the expensive

neuromarketing efforts offered many insights that the

company needed to work on and which traditional

methods could only partially arrive at. The alterations

which, among others, included different colour

packaging for different lines of soup and a new logo

proved beneficial for the company as it went to

increase its bottom line.

So how is neuromarketing implemented in real life?

Starting with, say the fMRI scanners(other

technologies are used too), the consumer‖s brain is

scanned which help the neuromarketers to find out

how consumers react subconsciously to advertising,

brand and products. This will tell the neuromarketers

what the consumer reacts to, whether it was the

shape of the packaging, the colour of the packet, the

sound the box makes when shaken, and so on. This

rare ability to watch inside the mind of consumersand noting how sensory inputs like image, smell and

touch culminate to reach decisions enables the

advertisers and marketers to optimise their

advertisement, campaigns and product or service

features to make them more acceptable. fMRI is not

the only technology that is used. While fMRI is chiefly

used for refining the product attributes,

Electroencephalography (EEG) measures fluctuations

in response to advertisements,

Magnetoencephalography (MEG) measures the

fluctuations but with greater accuracy than EEG and

Transcranial Magnetic Stimulation (TMS) is used to

measure causal roles.

EEG frequency

It should be noted that neuromarketing is not exactlythe same as subliminal marketing. The latter is only a

subset of the former and focussed on the application

part as implemented by the marketers.

Neuromarketing involves much more such as

involving the test subjects, using the biometric and

physiological sensors to carry out experiments,

studying the brain‖s reaction (sometimes also heart

rate, breathing, and skin response) to the social

triggers and so on. Application in the real world to

boost sales or acceptability (say, of presidential

speech) is the end result of neuromarketing. An

important part of neuromarketing which is more

related to subliminal messaging is "priming" which

refers to subtle suggestions made deliberately to the

subconscious mind, without the subject's knowing,

which could influence his/her subsequent behaviour.

Various companies had adopted the services of

neuromarketing research organizations successfully in

the last decade. They include, among others:

Proctor & Gamble (in launching of Febreze

room freshener)

Motorola (in product positioning)

Hyundai (in changing exterior appearance of a

car)

Paypal (in identifying what turns people on

more in e-shopping: speed or security)

Microsoft (in knowing the engagement of Xbox

users)

PepsiCo‖s Frito-Lay (in testing packaging in the

U.S. and overseas)

Buick Motors (in enhancing dealers‖ experience




with customers and increase in sales)

Yahoo‖s 60-second television commercial which shows

happy and dancing people around the world was pre-

tested with neuromarketing. Before rolling it out and

spending money to air the advertisement ontelevision and online, Yahoo had run it on EEG -cap-

wearing consumers. The brain waves from them

showed stimulation in the limbic system and frontal

cortices of their brains, where memory and emotional

thought occurs. The advertisement surfaced in

September 2009 to attract more users to its search

engine. More recent inductees such as Kimberly-Clark,

Johnson & Johnson and Unilever are using three-

dimensional computer simulations of both designs

and store layouts along with eye-tracking technology

to deduce how to improve sales.

In March 2011, world‖s largest world's largest

neuromarketing research firm Neurofocus (now part

of Nielsen) had launched Mynd, a full-brain

wireless EEG sensor headset. Using this market

researchers would be able to capture data on

consumers‖ subconscious responses in real time

wirelessly thus opening up new testing environments

beyond the lab such as home. The data would be

streamed to platforms such as iPad, iPhone and other

smart devices. Another recent article

“Neuromarketing Proof? UCLA Brain Scans Predict Ad

Success.”(2012) voices that scientists using UCLA fMRI

facility for the prediction of 3 anti-smoking

advertisements‖ found the prediction from brain

mapping more correct than the self -reports given by

the subjects. The researchers focused on a seeing

activity in the region of brain called medial prefrontal

cortex (MPFC) while showing the 3 ads and found that

the ad campaign which created the greatest activity in

that region generated significantly more calls

to a stop

-smoking hotline. The below figure illustrates it.

With this rate of development and participation by the

corporate giants, it is hard to call neuromarketing a

flash-in-the-pan and the future could be beyond

traditional focus groups, dominated by mind-reading

technology for understanding the consumers.

However neuromarketing is not without its share of criticisms. While some groups claims that the research

institutes are exploiting the corporate clients, some

non-profit organizations and customer advocacy

groups maintained that the concept was unethical,

being intervening with the customer‖s privacy when

practiced without their knowledge. These groups have

coined a new term for this practice carried out by

corporations, calling it “brandwashing”- from branding

and brain washing.

Many research papers hold that the findings of fMRI

are not revelatory and only reconfirmed some rules

that marketers had known intuitively. As for example,

co-author Michael Deppe in his paper “Bias - Specific

Activity in the Ventromedial Prefrontal Cortex during

Credibility Judgments" (2005) says that when

consumers faces credibility doubts, brand information

played a major role in decision making as seen by

increasing activity in the area of brain where

attraction occurs. But brand loyalty was traditionally

always a factor on such occasions. Other concerns

include that the benefits received might not outweigh

the cost incurred and the accuracy of the findings.

Regarding the latter, critics assert that it is inexact

science as body movements such as breathing could

distort or disrupt images and there are multiple

interpretations of a mapped image unless

assumptions are taken.

http://www.engadget.com/tag/eeg






References:

Gladwell, M. (2005). Blink: The Power of

Thinking Without Thinking . Little Brown and

Company.

Kahneman, D. (2011). Thinking, Fast and Slow .Farrar, Straus and Giroux

Lindstorm, M. (2008). Buyology - Truth and Lies

About Why We Buy . Doubleday.

Vidyasagar, T.P., & Babu, S.S. (2012).

Neuromarketing: Is Campbell in Soup? IUP

Journal of Marketing Management

Owano, N. (2012, July 16). Consumer product

giants' eye-trackers size up shoppers. Physorg .

Retrieved from http://phys.org/news/2012-07-

consumer-product

-giants

-eye

-trackers

-size.html

Shayon, S. (2012, July 17). Eye-tracking helping

marketers boost shelf awareness.

Brandchannel . Retrieved from http://

www.brandchannel.com/home/

post /2012/07/17/Eye-Tracking-CPG-

071712.aspx

Williams, J. (2010, Feb. 22). Campbell's Soup

Neuromarketing Redux: There's Chunks of Real

Science in That Recipe. FastCompany . Retrieved

from

http://www.fastcompany.com/article/rebuttal-

pseudo-science-in-campbells-soup-not-so-fast

Burkitt, L. (2009, Nov. 16). Neuromarketing:

Companies Use Neuroscience for Consumer

Insights. Forbes . Retrieved from http://

www.forbes.com/forbes /2009/1116/marketing-

hyundai-neurofocus-brain-waves-battle-for-the-

brain.html

Troni, N. (2012, July 17). Marketing the gap

between intention and action. Forbes . Retrieved

from http://www.forbes.com/sites/

onmarketing/2012/07/17/ marketing-the-gap-

between-intention-and-action/

Dooley, R. (2006, Apr. 6). Priming the customer.

Neurosciencemarketing . Retrieved from http://

www.neurosciencemarketing.com/blog/articles/

priming-the-customer.htm

Dooley, R. (2010, Feb. 23). Neuromarketing:

From Soup to Nuts. Neurosciencemarketing .

Retrieved from http://

www.neurosciencemarketing.com/blog /

articles/neuromarketing-soup-nuts.htm

Olenski, S. (2011, Sep. 21). Is Neuromarketing

The Future Of Marketing? BusinessInsider .


articles.businessinsider.com/2011-09-21/

tech/30183631_1_campbell-s-soup-soup-cans-

neuromarketing

Geisweiller, B. (2010, Sep. 10). Healthy

Manhattan: This Is Your Brain on Coke or Pepsi.

NewYorkPress . Retrieved from http://

nypress.com/healthy-manhattan-this-is-your-

brain-on-coke-or-pepsi/

Veronica, B. (2009, Nov. 15). Brief history of

neuromarketing. The International Conference

on Administration and Business . Retrieved from

http://www.itchannel.ro /

faa /119_pdfsam_ICEA_FAA_2009.pdf

NeuroFocus reveals Mynd… the first wireless

full-brain EEG headset. Neurogadget . Retrieved

Mar. 21, 2011 from http://

neurogadget.com /2011/03/21/neurofocus-

reveals-mynd%E2%84%A2-the-first-wireless-full

-brain-eeg-headset/1416

Deppe, M., Schwindt, W., Krämer, J., Kugel,

H., Plassmann, H., Kenning, P., Ringelstein, E.B.

(2005, Jul. 25). Evidence for a neural correlate of

a framing effect: Bias-speci…c activity in the

ventromedial prefrontal cortex during

credibility judgments. Brain Research Bulletin .

Retrieved from http://www.mydelphi.gr /

uploads/bias-specific%20activity%20during%

20credibility%20judgements.pdf

Singer, N. (2010, Nov. 13). Making ads that

whisper to the brain. The New York Times .


www.nytimes.com/2010/11/14/

business/14stream.html

Neuromarketing Proof? UCLA Brain Scans

Predict Ad Success. SCN Lab: Papers - UCLA.

Retrieved Apr. 27, 2012 from http://

www.scn.ucla.edu/pdf/

Neuromarketing_April_2012.pdf

http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Malcolm+Gladwell%22

http://en.wikipedia.org/wiki/Farrar,_Straus_and_Giroux


http://en.wikipedia.org/wiki/Doubleday_(publisher)

http://www.fastcompany.com/user/8

http://phys.org/news/2012-07-consumer-product-giants-eye-trackers-size.html

















http://www.brandchannel.com/home/post%20/2012/07/17/Eye-Tracking-CPG-071712.aspx











http://www.fastcompany.com/article/rebuttal-pseudo-science-in-campbells-soup-not-so-fast


















http://www.forbes.com/forbes%20/2009/1116/marketing-hyundai-neurofocus-brain-waves-battle-for-the-brain.html



















http://www.forbes.com/sites/onmarketing/2012/07/17/%20marketing-the-gap-between-intention-and-action/
















http://www.neurosciencemarketing.com/blog/articles/priming-the-customer.htm









http://www.neurosciencemarketing.com/blog%20/articles/neuromarketing-soup-nuts.htm








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http://www.itchannel.ro/

http://www.ncbi.nlm.nih.gov/pubmed?term=Deppe%20M%5BAuthor%5D&cauthor=true&cauthor_uid=16216688

http://www.ncbi.nlm.nih.gov/pubmed?term=Schwindt%20W%5BAuthor%5D&cauthor=true&cauthor_uid=16216688

http://www.ncbi.nlm.nih.gov/pubmed?term=Kugel%20H%5BAuthor%5D&cauthor=true&cauthor_uid=16216688

http://www.ncbi.nlm.nih.gov/pubmed?term=Plassmann%20H%5BAuthor%5D&cauthor=true&cauthor_uid=16216688

http://www.nytimes.com/2010/11/14/business/14stream.html




http://www.scn.ucla.edu/pdf/%20Neuromarketing_April_2012.pdf
















http://www.ncbi.nlm.nih.gov/pubmed?term=Schwindt%20W%5BAuthor%5D&cauthor=true&cauthor_uid=16216688

http://www.ncbi.nlm.nih.gov/pubmed?term=Deppe%20M%5BAuthor%5D&cauthor=true&cauthor_uid=16216688

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http://en.wikipedia.org/wiki/Doubleday_(publisher)


http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Malcolm+Gladwell%22




Indian Corporate Bond

Market

by Siddharth Pal, IIM Rohtak

India is a bank-dominated market and the relative

importance of bank assets as a percentage of GDP has

continued to grow—partly as banking penetration has

deepened with financial liberalization, and partly as a

result of the ongoing need for deficit financing. The

Indian bond market is, however, less well-developed.

While having seen rapid development and growth in

size, the government bond market remains largely

illiquid. Its corporate bond market remains restricted

in regards to participants, largely arbitrage-driven (as

opposed to driven by strategic needs of issuers) and

also highly illiquid. The article will analyze the

challenges faced by corporate bond market and

suggest reforms for the same.

Indian Debt Market

Let us compare the debt market of India with other

countries.

Source: RBI (as on Dec, 2011)

Indian Debt Market is only 34% of GDP which is very

less compared to other nations. India‖s government

bond market has grown steadily—largely due to the

need to finance the fiscal deficit—and is comparable

to many government bond markets in the world with

around 30% of GDP. The major investors in G-Sec are

Commercial Banks and Insurance companies. But the

corporate bond market is relatively underdeveloped

with only 4% of GDP. The presence of corporate bond

market in India is barely perceptible as compared to

other economies.

Need for Corporate Bond Market?

The role of a healthy corporate debt market as a

channel that links society‖s savings into investment

opportunities is of vital importance for several

reasons. For the issuer it provides low cost funds by

bypassing the intermediary role of a bank. Presence of

bond funds gives the corporations an alternative

means of raising debt capital and thus ameliorates

any potential adverse effect that a bank credit crunch

may have on the economy. For the investor, there

exists a yield premium opportunity in comparison to

traditional deposits at banking institutions. It also

increases the investment opportunities in different

type of instruments and tailors risk reward profile

according to his/her preferences. The basicphilosophy of developing a diversified financial

system with banks and non-banks operating in equity

market and debt market is that it enhances risk

pooling and risk sharing opportunities for investors

and borrowers. Given the huge funding requirements,

especially for long-term infrastructure projects, the

private corporate debt market has a crucial role to

play and needs to be nurtured. From the perspective

of developing countries, a liquid corporate bond

market can play a critical role in supporting economic

development as it supplements the banking system to

meet the requirements of the corporate sector for

long-term capital investment and asset creation.

Why Indian Corporate Bond Market Lags?

Now that we have established there is a need for a

vibrant and liquid corporate bond market in India. Let

us analyze the reasons that impede its growth. Major

factors inhibiting its development are:

Regulatory restriction on institutional investors.

Non Uniform stamp duty

Majority Issues being Private Placements and

not Public Issues




TDS in Corporate Bonds

Absence of sub-investment grade securities

Low Retail Participation

Absence of Market Makers

1. Regulatory restriction on institutional investors

Banks:

Statutory Liquidity Requirement (SLR) requires

banks to hold one quarter of their assets in

public sector bonds primarily government

securities. Only holdings in excess of the SLR

requirement can be traded and repurchased.

They are prevented from investing in unrated

debt instrument.

They are also restricted to invest only 10% of

their total non - SLR investments in unlisted

debt papers. Further only investment grade securities are

eligible for subscription by banks. This

prevents banks from investing in bonds of

lower rated corporations which may include

infrastructure companies.

Insurance Companies and Pension Funds:

Internationally institutional investors like

insurance companies and pension funds play

an important role in the corporate bond

market as the investment time horizon for

these institutional investors and the bonds are

long. In developed economies, huge amounts

of stable, long-term funds were channeled into

capital markets by pension funds and the

insurance sector and these funds facilitated

the emergence of very liquid bond markets in

those economies. In India, the involvement of

insurance companies in corporate debt market

so far has been limited. Insurance companies

and pension funds have huge potential to playa bigger role and contribute to the

sophistication and deepening of the bond

market in India.

Chicken And Egg Problem: There is a lack of

supply of suitable long term bonds which suit

the need of insurance and pension firms. Also

there is lack of demand due to regulatory

restrictions on investment in corporate bonds.

Infrastructure Debt Funds: The Reserve Bank of

India allowed banks, non-banking finance

companies and mutual funds to set up IDF in

September 2011.The existing guidelines of

IRDA and PFRDA does not permit insurance

and pension funds to invest in the proposed

Debt Fund.

2. Non Uniform stamp duty: Stamp duties are

typically 0.375% for debentures and, as they arestrictly ad-valorem, there is no volume discount.

The rate of duty varies depending upon location

(various states have set their own rates).

Currently, if the bond is being sold in one (state)

jurisdiction, but the asset has to be securitized in

another, then the stamp duty as applicable in the

latter is levied.

3. Majority Issues being Private Placements and

not Public Issues: Public issues are bondsoffered to a wide range of investors and which

conform to the regulatory standards required of

public issues of bonds. They require a prospectus

approved by SEBI, and have to be open at a fixed

price for a month to allow investors particularly

retail investors to subscribe. Private placements

can be made to a maximum of 50 “Qualified

Institutional Buyers” (professional investors).

SEBI in its Annual Report 2010 - 11 said “Although

the year has seen a number of public issues,private placements have also remained as one of

the preferred modes of raising debt funds. The

rise in funds mobilized could also be possibly

attributed to issuers preferring the domestic debt

markets as a primary source of corporate debt.

The issuers raised an amount of 2,18,785 crore by

way of private placement during 2010 - 11 as

compared to 2,12,635 crore in 2009 - 10.”

4. TDS in Corporate Bonds: In case of corporate

bonds, TDS is deducted at source for resident andon non-resident investors as per prevalent tax

laws.

5. Absence of sub-investment grade securities: In

developed markets like USA, UK, Japan there is a

vibrant market for sub investment grade

securities. While in India regulatory restrictions

prevent institutional investors from investing in

such securities. This limits issuance of lower rated

bonds.

6. Low Retail Participation: Indian retail investors

have not shown interest in the corporate bond

market. This may be due an illiquid secondary

http://economictimes.indiatimes.com/topic/Reserve%20Bank%20of%20India








market and the low confidence (low risk appetite)

in the corporate world. Retail investors prefer PF

and Post Office schemes and other alternate

investment avenues. Less investor knowledge and

awareness about such products may be one of the

reasons for their low participation.

7. Absence of Market Makers: There is a need for

general market for corporate bonds to be

developed for the market participants. Market

Makers can address the issues of price discovery

and liquidity in the corporate debt segment.

How it can be improved?

There is a need for developing an efficient and vibrant

corporate bond market. To meet the needs of firms

and investors, the bond market must therefore

evolve. The policy recommendations should focus on

designing a self -sustaining ecosystem for investors,

issuers and market makers. The following reforms are

recommended:

1. Life Insurance Co.’s: Minimum investment

required in respect of approved securities (GOI,

State Government & Securities granted by either

GOI or State Government) should be reduced.

Minimum investment requirement should be

investment grade only i.e. BBB-. It may be stated

that in United Kingdom BBB- is the cut off for

investment by insurance or pension fund. IRDA

(Insurance Regulatory And Development

Authority) should allow insurance funds to trade

in Govt. securities (currently they are required to

hold until maturity) to improve liquidity and

depth to secondary bond market. IRDA should

allow insurance firms to invest in IDF by declaring

such investments as eligible investments.

2. Pension Firms: In order to accelerate the flow of

pension funds into infrastructure, Upper limit for

investment in Government securities or

Government guaranteed securities or gilt funds

be reduced. PFRDA (Pension Fund Regulatory and

Development Authority) should allow pension

firms to invest in IDF by declaring such

investments as eligible investments. PFRDA

should allow pension funds to trade in Govt.

securities (currently they are required to hold

until maturity) to improve liquidity and depth tosecondary bond market.

3. Foreign Institutional Investors: Income Tax

Department, Ministry of Finance should do away

with or decrease withholding tax rate to

encourage investments in bonds. Same has been

done to attract off -shore funds into IDFs by

reducing withholding tax on interest payments on

the borrowings from 20% to 5%. Republic of

Korea had also scrapped this tax leading tothreefold increase in FII investment.

4. Rationalizing Stamp Duty: There should be a

uniform low rate across all states and that the

maximum amount payable should be capped. Fix

stamp duties based on tenor and issuance value

to encourage public offerings of corporate debt.

Department of Revenue (DOR) and State Govts

need to act on it.

5. Removal of TDS on Corporate Bonds: TDS was

viewed as a major impediment to the

development of the Government securities

market and was abolished when the RBI pointed

out to the Government how TDS was making

Government securities trading inefficient and

cumbersome. Same could be done for corporate

bonds as also been suggested by CII.

6. Creation of Market Makers in Corporate Bond

Market: There is a need to set up institutions thatwill perform the function of buying/ selling

bonds. (By creating a network of dealers which

provide two-way quotes). As India already has an

established system of Primary Dealers, it should

utilize the same for good corporate bond. As a

pilot project some PSU debt paper could be

assigned to the existing PDs for market making.

Once this gets established the list could be

expanded. Dr. C. Rangarajan, Chairman PMEAC

has also suggested that there is need to set updedicated institutions like DFHI and Securities

Trading Corporation for the purpose of

development of corporate bond market needs

consideration.

7. Risk Mitigation Steps: To address the risks

associated with investment in corporate bonds,

GOI had introduced CDS (Credit Default Swaps),

IRF (Interest Rate Futures) and Repos on

corporate bonds but they have not taken off.

Initiatives should be taken to popularize theseinstruments.



Introduction `Does the stock market overreact?' De Bondt and Thaler in 1985 gave start to a new wave of thinking

known as behavioural finance. Weak form inefficiency of the stock market was discovered by them after

analysing how people are systematically overreacting to unexpected and dramatic news events which were

surprising and profound. The Efficient Market Hypothesis as proposed by Fama (1970) asserts that the

stock prices reflect the relevant information. The asset prices follow a random walk path i.e. they are

merely random numbers. The study conducted by Caginalp G. and H. Laurent (1998) by the predictive

power of price patterns finds patterns and confirms that they are statistically significant even in out-of -

sample testing and report.

The pattern of the stock index might help in predicting some of the effects of the various events. The

calendar anomalies tends to exist which goes against the efficient market hypothesis. The researchers have

used Gregorian calendar to investigate the calendar anomalies. There are various countries and societies

which follow their own calendar on the basis of their religion. For example, the Hebrew calendar is

followed by the Jewish society, which is strictly based on luni-solar, the Christian society follows the

Gregorian, which is based on solar, and similarly Hindu and Chinese follow their own.

The Hindu calendar is called “ Panchanga” and it is based on both movements of the sun and the moon.

The festival of “ Diwali” is typically occurs at the end of October and beginning of November.

The special ritual called “ Mahurat Trading ” can be observed on major stock exchanges like NSE, BSE,

NCDEX to name a few lasts for about an hour. It is performed as a symbolic ritual since many years. It

marks a link with the rich past and brokers look at it on a positive note. It marks an auspicious beginning to

the Hindu New Year. The investors place token orders and buy stocks for their children, which are

sometimes never sold and intraday profits are booked, however small they may be. Thus, it is widely

believed that trading on this day will bring wealth and prosperity throughout the year.

It is interesting to observe the behaviour of trading activities during the period preceding and succeeding

Mahurat Trading. The purpose of this study is to know the effect of the festival prior and post diwali on the

the returns.

Econometric methodology

I have measured stock return as the continuously compounded daily percentage change in the share price

index (S&P CNX NIFTY) as shown below:

Rt = (lnPt – lnPt-1) x 100 …………………… (1)

Where, Rt = return at time t

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Pratibimb September v1.0