Friday, January 29, 2010

Saturday, January 16, 2010

Who said it’s getting murky at Merc?!

4Ps B&M: Do you believe that the increasing competition will pose a threat to your leadership position and especially are the aggressive launches by BMW a point of worry for you?
WA:
For us, the important thing is to have a set of satisfied customers as it will be the only factor, which will drive sales & profitability going forward. If you look at India overall, we believe that we have a very good product portfolio and network density. We are currently investing Rs.150 crores in the network itself, both to increase its reach and to ensure that the Mercedes Benz retail experience is the best in the country.

4Ps B&M: When you talk about increasing the reach, are you referring to opening more dealerships in the Tier-II and Tier-III cities?
WA:
The expansion will definitely happen in the Tier-II and Tier-III cities basically driven by two things, one is the overall situation of the city i.e. how many people are making what kind of money and how many cars are already on the road. These are some parameters that will determine where we will set up the shop next. The way we set up is in a very structured manner i.e. we will set up the service centre first, moving to sales and then slowly upgrading the sales & service experience to ensure that we give the best retail experience. If you look at the metros, we have new investments coming up there too. We are opening a new showroom in South Bombay, Gurgaon. In fact, by the first half of 2010 we will have 20+ new facilities across the country.

4Ps B&M: You also mentioned about upgrading your retail experience, what is that all about?
WA:
This is an investment to upgrade our facilities for e.g. we are moving from a smaller facility to a relatively larger facility so that the consumer can savour more of the Mercedes brand.

4Ps B&M: Is it something like a boutique showroom, which BMW did recently?
WA:
BMW is relatively new to the country and so are their investments. We are making all the possible efforts to ensure that Mercedes is not left behind. But I don’t think we will do a boutique showroom rather we will focus on opening significant showrooms, which will give an opportunity to the consumer to experience what Mercedes brand is all about and also experience our product portfolio.

4Ps B&M: But the per cent growth that BMW filed was almost double that of Mercedes in the last fiscal. Do you believe that it will pose a threat to your leadership position?
WA:
That’s particularly because of the lower base that they have. If you look at the growth of Audi, it is currently three times to that of BMW.

4Ps B&M: Agreed but BMW again has a target of 3,000 units this year and if Mercedes does almost the same the company did in the first half (1500 units) don’t you think it will be a threat to your leadership position?
WA:
For us the important thing is to have the right product and the right processes in the right year in front of the Indian consumer, which will drive both the sales and profitability going forward. We have a good position in the C & the S-class segment and we will roll out the E-class soon, which globally outsells competition.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Monday, January 11, 2010

The BIG Man’s Holy Grail...

Behl is banking on BIG TV’s present Pay per View (PPV) bouquet to deliver. The DTH player has recently spiced up its PPV offerings with live shows, exclusive concerts, et al, while other players have stayed with mere movie content in the segment. BIG TV, in fact, was the first player in the industry to come up with a monthly subscription plan for movies in their PPV bouquet, enabling customers to view them anytime during that month as opposed to charging separately for each featured movie being offered in that month. “The response for our PPV services has been very encouraging,” agrees Behl, confident about the imminent success of their strategy. After all, as per estimates, India’s PPV segment is estimated to grow at 16% annually to log revenues of $11.3 billion by 2012. Behl is hoping for the segment to emerge as a key driver of the DTH business not only in India, but the whole of Asia. His hopes are not misplaced. Independent market research has shown that India will remain a leading PPV market in Asia with superior growth prospects in the near future.

“Over the next few years, Reliance BIG TV expects PPV to contribute nearly 10% of its revenues,” says Behl. No wonder, Behl is now also planning to introduce sports and events content in its PPV bouquet. Having already bagged the rights for the commemorative concert for Michel Jackson – ‘Live In Bucharest: The Dangerous Tour’ – the company is also in talks with other Indian and international content providers to offer more such content on their platform. Behl says that they are also looking at adding more meat to their overall content strategy. BIG TV is lining up a slew of interactive features and a major revamp of its filmed entertainment content, besides bringing in whole new range of channels, which were not available to Indian TV viewers in India till now. Rumour has it that BIG TV will be offering the entire FOX bouquet to its consumers shortly.

The other strategy that Behl is deploying to beat rivals in the segment has been drawn from his experience while working with HUL’s Vim brand almost a decade ago. “Consumer Insight is the key. While with HUL, I visited my rural consumers and even washed utensils in their homes to understand customer psyche,” he says, adding that he is planning to conduct a similar exercise at BIG TV to find out what more services could the viewers want and need. Besides, the focus is also on providing the latest technology (ahead of competitors) to consumers. With this in mind, BIG TV had launched DTH services on the MPEG 4 platform (while others like Dish TV and Tata Sky are still sticking with the MPEG 2 platform).

However, some of the enthusiasm at BIG TV has not really translated into action. At the time of launch only, BIG TV had announced that it would be coming out with a DVR based set top box that would allow consumers to record and pause live TV. But it’s almost a year now (and Tata Sky and Sun Direct have already launched the technology) and there has been no news from BIG TV of the same. Quiz Behl on that and he is prompt with his reply. “We will be offering it shortly. We are looking at providing more options to customers to choose from,” he says. The plan is also to price the DVR competitively for which BIG TV guys are currently exploring all options to offer modified DVR sets at a cheaper price. The strategy may actually stand Ambani junior’s DTH ambitions in good stead - and allow him to prove his prowess in yet another consumer-centric business.

As for Behl, the uphill journey has only just begun and requires a great deal of hard work. But then, his almost child-like passion for everything has already become the stuff of legends at ADAG. Sources who work closely with him never cease to sing paeans about his involvement with everything big and small. “Unlike other CEOs who delegate more, he worked round the clock during the BIG TV launch, rolling up his sleeves with the rest of us to ensure it went smoothly,” says a team member on conditions of anonymity. Added to his deep well of marketing expertise and seeking spirit about consumer insights, this focused approach is precisely what has endeared him to Anil Ambani. This BIG man is certainly turning out to be one big asset for the ADAG camp!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM fights meltdown, places 2300 students By Education Mail Bureau
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