SEGRAN NAIR
ROBERT BENNY
DIRECTOR OF THE MBA PROGRAMME, UNIVERSITY OF CAPE TOWN WHY B-SCHOOLS NEED TO COMPEL STUDENTS TO THINK CRITICALLY
P R O D U C T
P R I C E
P L A C E
DIRECTOR, SUPPLY CHAIN PROCESSES, ADVANCED MICRO DEVICES (AMD) DEVELOPING TALENT FOR HIGH PERFORMANCE SUPPLY CHAINS
India’s First & No. 1 Business & Marketing Magazine
P R O M O T I O N
NOW ONLY ` 50
ISSN 0973-4341
VOL. VII ISSUE 8 14 AUGUST ‘12
BUSINESS & MARKETING A PLAN PL PLANMAN LAN A MA MAN N ME MEDI MEDIA DIAA - IIIIPM DI PM TTHI THINK HINK HI NK TANK TTAN ANKK PUBLICATION AN PUBBLIC PU BLIC ICAATIO ATION N
FOR THE SEVENTH YEAR IN A ROW, ICMR-4Ps B &M BRING TO YOU THE COMPREHENSIVE AND COGENT LIST OF THE MOST VALUABLE BRANDS THAT MAKE INDIA INC. PROUD
CONTENTS
BUSINESS & MARKETING INDIA’S FIRST & NO. 1 BUSINESS & MARKETING MAGAZINE
Volume VII Issue VIII 15 July - 14 August 2012 Editor in Chief: Arindam Chaudhuri Editor: A. Sandeep Managing Editor: Sutanu Guru CEO: Deepak Kaistha Chief Consulting Editor: Rajita Chaudhuri Features Editor: Prashanto Banerji Deputy Editor: Virat Bahri Executive Editor: Manish K. Pandey Senior Editor: Steven Philip Warner Assistant Editor: Deepak Patra Consulting Editor: Monojit Lahiri Founder Editor: Malay Chaudhuri
INDIA’S
EDITORIAL STAFF Editorial Coordinator: Angshuman Paul Delhi: Anu Gulmohar, Niharika Patra, Pawan Chabra, Amir Moin, Anirudh Raheja, Deepanshu Taumar, Ashish Kumar Hyderabad: Shyam Sunder Pujala Kolkata: Tarun Bose Bengalooru: Indira Parthasarathy
MOST VALUABLE
DESIGN & PRODUCTION Group Design Director: Satyajit Datta Sr. Art Director: Siddharth Kapil Deputy Art Director: Priyankar Bhargava Senior Designer: Hitesh Mehta, Prakash Shetty Ulepady Sr. Infographist: Kuldeep Singh Image Editing: Vinay Kamboj Senior Illustrator: Shantanu Mitra Group Photo Editor: Ranjan Basu Chief Photographer: Sujan Singh Chief Photo Coordinator: Varun Pal Singh Senior Photo Research: Sanjay Kumar, Ashutosh Vig Production Manager: Gurudas Mallik Thakur Production Supervisor: Digember Singh, Satbir Chauhan, Soumyajeet Gupta, Dipak Basak, N. Ekantha Lingam, Deep Narain
BRANDS 2012
68 COVER STORY
MARKETING Pushkar Nanda, Rajat Sogani, Ravi Babu, Sumit Raina, Guljar Singh, Rishi Kapoor, Sunil Kumar, Bhaskar Mojumdar
14 People Speak
CIRCULATION Sales Manager: Bhupinder Bisht, Manoj, Rizvi, Venkat Narasimman, Swaroop Saha, Joydeep, Kunj Bihari, Mukund, Parameshwara, Shihabuddin
16 Number Speak 20 Inbox: this month
HEAD INVESTIGATIONS Rajat Amarnath 4PS B&M ONLINE Chief Web Designer: Neel Verma Sr. Web Developer: Anil Kumar, Christopher Mani Web Developer: Raj Saikia For advertisement, feedback and other queries, write to
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32 Marketing story: How Monte Carlo is targeting the retail business 38 Advertising: Budget blues
30 CMO SPEAK
Vikram Malhotra VP, Sales & Marketing, JK Tyre & Industries
For subscription contact at 0120-4170111, 4170192 Email :
[email protected],
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50 First Cut: Mahindra Xylo 56 B-school Column: Robert Benny, Director, Supply chain processes, AMD 110 B-school Interview: Segran Nair, University of Cape Town, Graduate School of Business
Printed at: M.P. Printers, B-220, Phase-II, Noida-201 305 Printed & Published by Ashok Bose on behalf of Planman Media Pvt. Ltd. Editor: A. Sandeep Published from: Planman Media Pvt. Ltd., 48, Community Centre, Naraina Vihar Industrial Area, Phase-1, New Delhi-110028 Visit us at: www.4psbusinessandmarketing.com Editor A. Sandeep responsible for the selection of news under PRB act. Entire content copyright(C) 2007 by Planman Media Pvt. Ltd. All rights reserved throughout the world. Reproduction or translation in any language in whole or in part without permission is prohibited. The Publisher assumes no responsibility for the return of the unsolicited material or for material lost or damaged in transit. All disputes are subject to exclusive jurisdiction of competent courts and forums in Delhi or New Delhi.
44 Ad Rankings
122 Case study: International University of Monaco 124 Product Launches 126 Fun@ Marketing
52 BIG IDEA
COUNT YOUR CHICKENS BEFORE THEY HATCH SUPPLEMENT IS BEING DISTRIBUTED FREE OF COST WITH THIS ISSUE OF THE MAGAZINE IN SELECTED CITIES
12 4Ps BUSINESS AND MARKETING 15 JULY - 14 AUGUST 2012
Kersey Katrak, Father of creative advertising in India
128 The Last Word 130 Brand Quiz Cover Design: Shantanu Chatterjee
CMO SPEAK
V I K R A M M A L H O T R A , V P, S A L E S & M A R K E T I N G , J K T Y R E & I N D U S T R I E S
“OUR TYRE EXPORTS HAVE JUMPED BY NEARLY 50%” TO OFFSET THE SLOWDOWN IN TYRE SALES, JK TYRE, INDIA’S THIRD LARGEST PLAYER, IS BEEFING UP ITS EXPORT MARKET POTENTIAL, AND FORAYING INTO NEW TERRITORIES Deepanshu Taumar
ith more than 30 years’ experience, Vikram Malhotra is a well known name in the Indian tyre industry. A post graduate from Delhi University, Malhotra started his career with Ceat, and later moved on to Bridgestone. He has played a major role in the launch of car radials in India. He joined JK Tyre to head Sales & Marketing for Truck/Bus radials and was instrumental in JK Tyre becoming the market leader in the segment. Edited excerpts from his interview with 4Ps B&M’s Deepanshu Taumar:
W
The Indian automobile industry is going through a a rough patch due to slowdown in sales. How is it impacting the tyre industry? The heavy commercial vehicles segment in which JK Tyre has a big stake is not immune to the ongoing slowdown. The slowdown in mining activities and infrastructure development has affected the sales of heavy duty trucks, which in turn has impacted tyre manufacturers like us. Besides, Original Equipment Manufacturers (OEMs) have been forced to go for inventory correction as there is a large build-up of existing stocks due to the dip in their sales. Like the auto players, our inventory levels have gone up too. As such the auto and tyre industry has adopted a wait-and-watch policy. We’re waiting for interest rates to come down. In this context, what will be your strategy for growth? We have an opportunity for export. We may not be a strong player in Europe, which too is facing an economic slowdown of grave proportions. But we are a strong and aggressive player in places
30 4Ps BUSINESS AND MARKETING 15 JULY - 14 AUGUST 2012
Vikram Malhotra VP, Sales & Marketing, JK Tyre & Industries
MARKETING
RETAIL
HOW MONTE CARLO IS EXTENDING ITS KNITTING THE BRAND, PRIMARILY KNOWN FOR ITS WINTER WEAR, IS NOW READY TO ENTER KIDS´ WEAR AS WELL. BUT MAKING ITS FORAY SUCCESSFUL WILL BE A CHALLENGE, ESPECIALLY GIVEN THAT THE BRAND'S POSITIONING HAS TILL NOW FOCUSED ON A NICHE Angshuman Paul
he Rs.850-crore Monte Carlo brand, which last year was hived off from Oswal Woollen Mills owned by the Ludhiana-based Nahar Group, has enjoyed a strong presence in the woolens segment and carries a good aspirational value. Now, after having built a great brand recall and a robust scale of operations in the winter wear market, Monte Carlo is all set to make an entry into the kids’ wear segment. Though winter wear still accounts for almost 75% of the brand’s total sales, which stood at Rs.400 crore in the last fiscal, the company has of late been focusing aggressively on the non-winter category and lifestyle garments. Accordingly, the brand has already entered into the summer wear segment and a sub-brand called Alpha has recently been launched for women wear. With a view to changing the ratio and take the share of non-woollen wear to 50% in the next five years, the company has now decided to enter into the kids’ wear market as well.
T
According to the industry body Assocham, the kids apparel market in India, currently worth Rs.38,000 crore, is likely to reach Rs.80,000 crore by 2015 because of rising incomes and greater fashion consciousness among children. Retail consultancy Technopak has stated that the kids’ wear market in India is growing at a compounded annual growth rate of 11%. Technopak estimates that by 2020 the kids’ wear market would cross a staggering Rs.1 lakh crore. With 30% Indians aged below 15 years and kids demonstrating a heightened sense of brand awareness, the kids prêt-a-porter segment has emerged as the new playground for the Indian apparel bigwigs. Currently, kids’ wear constitutes over 15% of the overall apparel market in the country. Various factors like the growth in organised retail, rising fashion consciousness among kids and rise in discretionary income and changing fashion trends are driving the demand for branded kids wear. Not surprising that Monte
32 4Ps BUSINESS AND MARKETING 15 JULY - 14 AUGUST 2012
Carlo is pulling out all the stops to cash in on this sizzling market opportunity. But given the presence of big daddy brands in the kids’ wear market, Monte Carlo’s latest foray is not going be a cakewalk. Brands like Catmoss, Mom & Me, Lilliput, Toonz Kids, Giny & Jony, Li’l Tomatoes and Ruff kids are just some of the better-known players dominating the market. Even premium brands such as Tommy Hilfiger, Allen Solly, Puma and Nike, are not far behind and are now including more kids’ products and accessories. Not to be left behind, brands such as Benetton, Pantaloon and Reebok have roped in popular characters like Pucca, Ben10 and Power Rangers to lure their 4-14 agegroup customers. According to a recent market report by Iris Retail, Lilliput is the largest player with an estimated market share of 14.3%, followed by Gini & Jony with 11% and Catmoss with 7%. Still, a large segment of the kids’ wear market is still untapped, which
