Month: March 2018

Scale of Adidas

Adidas: Strengths -Strong success in Europe -High-performance products -Recent selling of subsidiary “dog” Salomon -In many invents is the biggest sponsor -Strong management team. -Strong control over its own distribution channel. -In the soccer industry, it has a stronghold. -No bad reputation like child labour or environment pollution. -Diversity and variety in products offered. -Strong financial position with minimal long term debts -Innovative designs in footwear enabling consumers to design their own shoes online -First movers advantage in e-commerce Weaknesses American athletes endorsed by adidas are not as popular as Nike’s -Nike gaining ground on European soccer market -Public dissent over use of sweatshops -E-commerce is limited to USA -Direct sale to consumers is creating conflicts with its own resellers. -High prices in some products. -Online customer service not ‘helpful’ or easy to find. Opportunities -Acquisition of Reebok. -Growing strength in golf industry through TaylorMade and recent acquisition of Maxfli -Growing revenue from opening of own retail stores. -Collaborate with other online retailers to offer Adidas products.

Threats -Foreign exchange rates will result in loss of actual profits. -Nike’s strong reputation in the footwear and apparel industry. -Continuing challenges in import/export duties. As mentioned on their website Adidas has been a leader in Europe for years and have been able to become comfortable there. Another strength is that Adidas-Salomon produces high-performance shoes. They have been able to attract hardcore athletes as customers due to efficiently made shoes (adidas. com). Adidas recently announced that it will be selling its Salomon brand to Amer Sports Corporation for $624 million.

Salomon was originally acquired by the Adidas Group in 1997 when it paid $1. 4 billion for Salomon and its subsidiaries, including golf brand TaylorMade and cycling brand Mavic. The sale will include the brands and subsidiaries Salomon, Mavic, Bonfire, Arc’Teryk, and Cliche. Herbert Hainer, Adidas-Salomon Chairman and CEO, stated that “Salomon has been a great member of our group. However, we have decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market as well as the growing golf category” (Bloomberg).

This move will allow Adidas to rid itself of the recently slumping Salomon brand, which posted a 1 percent drop in revenue along with a 74 percent drop in operating profit in 2004. The sharp decrease in operating profit is due to recent restructuring that reduced French production of Salomon products from 55 to 35 percent with new production taking place in Romania and China. News of the sale spiked Adidas’ shares up 9. 2 percent, reaching its highest point in six years, while Amer Sports shares gained 7. 6 percent.

A major weakness of the Adidas brand is that they are currently third in the American market for athletic footwear sales. Another weakness is Adidas’ recent fall in the soccer shoe market. Nike took over first place in the European soccer shoe market with its success of the Air Zoom Total 90. Adidas’ final weakness that must be mentioned is their use of sweatshops. There were allegations of inhumane conditions in Adidas’ Asian factories in 2000. However, Adidas-Salomon maintained that they were trying to fix the conditions. Adidas has a huge opportunity on its horizon.

The acquisition of Reebok should allow adidas to have greater access to the American market, where Reebok is currently second in the athletic footwear industry. Another opportunity for adidas-Salomon is the possible expansion of their TaylorMade brand. Although adidas is currently selling the Salomon brand for nearly half of what it paid for it in 1997, the deal does not include the golf brand TaylorMade. TaylorMade-adidas golf has a strong hold on the golf industry and was ranked as the number one driver on the United States and European PGA tours (adidas-Salomon. om). TaylorMade holds 7. 5 percent of the market share for golf balls and adidas increased its opportunities in 2002 by acquiring golf-ball maker Maxfli from the Dunlop Slazenger Group. Finally, adidas can expect to see revenue increases due to their newly implemented and recently successful own-retail activities. These include concept stores, factory outlets, Internet sales, and parts of Asian markets. A threat for adidas is that it sees a negative impact on its revenues due to the exchange rate differences between the Euro and the United States dollar.

They manufacture most of their product in Asia, where business transactions are conducted in dollars. Therefore, adidas is forced to convert back to the Euro as early as the manufacturing stage. Then, later on, after sales in countries that do not use the Euro. PORTER’S FIVE FORCES Barriers to Entry – Low Due to the large scale of Adidas, the firm is able to control their costs to retain performance advantage over emerging competitors in the industry. Their web site is more sophisticated and enticing to browse, contributed to their large marketing budgets.

The capital injection into web site development is high and must be updated frequently with new promotions and added features to attract online shoppers. There are many proprietary product differences in the industry therefore brand identity has an immediate competitive advantage. Adidas brand is well renowned globally and plays a major role in consumer decision making. Selling footwear online is highly competitive; however, barriers to enter into this e-commerce industry are quite low. The capital requirement for setting up an online shop is comparatively lower than setting up a traditional bricks and mortar establishment.

Therefore, the online footwear industry is highly abundant with hundres of online merchants. Switching cost is low for the consumer, and may occur frequently depending on consumer preference and other factors affecting consumer buying decision, (i. e. price sensitive consumers). Another major barrier is security. Although, Adidas have invested millions of dollars into their web site, there is an industry wide problem of securing data over the Internet medium. Hackers may potentially lacerate into the site and could retrieve sensitive data such as consumer profiles, credit card numbers, and other corporate data.

They could even redirect the company’s web site traffic to another web site similar to the case of Nike in June 2000. Nike experienced a hijacking of its web site. The traffic from www. nike. com was redirected to a server at a Scotland-based Web hosting company. Bargaining Power of Buyers – High There are a large number of buyers relative to the number of firms in this industry. Therefore, companies like Adidas must continuously market their product and differentiate their brands against competitors, in order to increase sales and market share.

The use of online tools has helped to enhance the accessibility and intimacy among users. For example, its website’s link allows consumers to customize and design their own footwear by permitting customers to specify the desired colours and the option to personalize the footwear with their name. Brand identity plays a critical role in the buying behavior; strong identity will offer consumers trust and loyalty. Many online buyers are price sensitive and switching cost is low for the buyer. Bargaining Power of Suppliers – Low There are many suppliers in this industry.

In essence, there is very little differentiation among the suppliers which makes suppliers’ bargaining power non-existent. Leather, rubber, and cotton are commodity items and are available abundantly in the market place. Conglomerates such as Adidas have a definite advantage and power over their suppliers. These suppliers become dependent on these firms as their means to survival. Additionally, Adidas have standardized their input procedures pertaining to the materials used, their labor force, supplies, services, and logistics.

Firms are able to switch between suppliers quickly and cheaply, due to the globalize networks of cheap labor on various continents. Additionally, inputs are readily substituted and there are an abundant number of suppliers available. Threats of Substitutes – Low Buyers’ propensity to substitute is low. Consumer substitutes for athletic footwear products are low because there are little alternatives to switch, some substitutes for athlete footwear could be boots, sandals, dress shoes or bear feet. Consumers are not likely to substitute due to the performance specification of the product.

For instance, a basketball player would not wear boots to play basketball. Therefore, there are no real substitutes for athletic footwear. Rivalry among Existing Competitors – High The rivalry among existing competitors in the footwear industry is quite high. Large firms such as Adidas have grown immensely over the last two decades. Their global reach has expanded through all continents; this is attributed to the emergences of the Internet and e-commerce. Online selling has enlarged the reach for these firms allowing them to increase sales while minimizing operating costs.

Almost every large firm has a web site, and most of these web sites contain virtual stores which provide convenience to consumers. Most individuals in North America have access to high speed Internet and online purchasing has become the new trend for the twenty first century. Competition is fierce in the footwear industry and those who dominate or lead the market do so with high capital expenditures, aggressive sales and marketing strategies, and strong brand identity. Sources: Adidas-Salomon. 2005. adidas-Salomon to combine with Reebok and create €9 billion footprint in global athletic footwear, apparel and hardware markets. online]. Adidas. [cited 10 September 2005]. Available from World Wide Web: (http://www. reebok. com/NR/rdonlyres/eypsl3l24vnxekyolk3ctuxcueejdzg6o4q7cgltnrzta5ednwvoehtyhbqi dqixc7p2cfd5vljiek/ADIDASREEBOKPRESSRELEASE. pdf) EBSCOhost. 2005. adidas-Salomon SWOT Analysis: Threats [online]. Business Source Premier [cited 10 September 2005]. Available from World Wide Web: (http://search. epnet. com/login. aspx? direct=true&db=buh&an=16895217) Kiley, David. 2005. Reebok and Adidas: A Good Fit [online]. BusinessWeek Online [cited 7 September 2005]. Available from World Wide Web: (http://www. usinessweek. com/print/bwdaily/dnflash/aug2005/nf2005084_8430. htm) Knight, Philip H. 2005. Chairman’s Letter to the Shareholders [online]. Nike’s 2004 Annual Report [cited 12 September 2005]. Available from World Wide Web: (http://www. nike. com/nikebiz/investors/annual_report/ar_04/NIKE_2004_Annual_Report. pdf) NikeBiz. com. 2005. Company Overview. [online]. About Nike. [cited 11 September 2005]. Available from World Wide Web: (http://www. nike. com/nikebiz/nikebiz. jhtml? page=3&item=facts) NikeBiz. com. 2005. Mission. [online]. The Nike Mission. [cited 8 September 2005].

Available from World Wide Web: (http://www. nike. com/nikebiz/nikebiz. jhtml? page=4) Osborn, Andrew. 23 November 2000. Adidas Attacked for Asian ‘Sweatshops’ [online]. Guardian Unlimited [cited 14 September 2005]. Available from World Wide Wed: (www. globalpolicy. org/socecon/tncs/2000/1123ao. htm) Thomas J. , Ryan. 2005. Amer Group Acquires Salomon [online]. Business Source Premier. [cited 12 September 2005]. Available from the World Wide Web: (http://search. epnet. com/login. aspx? direct=true&db=buh&an=17402675) *http://www. channelseven. com/newsbeat/99features/news19990624. html, October 2003 *http://www. urlwire. com/newsarchive/062499. html, October 2003 *http://www. adidas-salomon. com/en/news/archive/2000/2000-07. asp, October 2003 *http://www. adidas-salomon. com/en/overview/welcome. asp, October 2003 *http://www. adidas-salomon. com/en/investor/strategy/default. asp, October 2003 *http://www. adidas-salomon. com/en/investor/reports/default. asp, October 2003 *http://www. adidas-salomon. com/en/overview/history/default. asp, October 2003 *http://www. cybersource. com/solutions/success_stories/nike. xml, October 2003

Al Ahram Beverages

Case Analysis Al Ahram Beverages Company “2” By: Marmina Abdel-Malek 900 00 1809 Fall 09 ? I-Overview: ABC was a public company originally found in 1897, that has been nationalized in 1963, until it had been privatized in 1997 and acquired by the Luxor Investment group represented by Ahmed el Zayat as a CEO and board chairman. Luxor group is an American investment group focusing on investment more than the business itself. Zayat’s vision and objectives: Marinating local market dominance and transforming the company from a domestic brewer to a leading edge multinational beverages company. II-Situation Analysis: General Environment Analysis oDemographic Trends ?350 million Muslim in the MENA region ?Platform for easy access to many countries ?Population size: 60. 2 million in 1994 ?Age structure: 60% under 25 years ?Ethnic mix/religion: 94% Muslims and 6% Coptic Christians oEconomic Trends ?GDP increasing steadily (6. 11%) •Average per capita is USD 50/ month •Inflation decreased from 21. 10% in 1992 to 8. 3% in 1996 •Different government trend: deregulation of the economy ?Privatization of publicly owned enterprises ?Liberalization of financial markets and trade ?Trade liberalization efforts ?Removing the ceiling on nominal interest rates Depreciation of the EGP against the dollar oPolitical Legal Trends ?Tax holidays for newly manufactured or upgraded plants •6 years tax holiday for Sharkia plant •10 years tax holiday for Nile Brewery ?High Tax on imported beer and spirits •1200% for non-touristic areas and 300% for touristic. ?High duties on wines were to take place for the coming 4 years. ?Stable political environment: peaceful relations with neighboring countries & no military disputes ? Sale of alcohol is legal. ?The Egyptian labor law governs the termination of permanent or temporary employees; consequently a company cannot easily fire an employee. Socio-cultural trends ?Religious and conservative society ?Alcoholic drinks were not culturally accepted as it was banned by Islam ? Anti-secular movements III-Industry Analysis (Porter’s model) a. Threat of new entrants i. Government promise no more entrants for 2 more years ii. High initial costs for new competitors: 1. Building distribution network (moreover, it was almost impossible to open new outlets, so acquisition of already available alcoholic outlet was the practical solution) 2. Building new plants b. Rivalry among company i. Monopoly, no local competitors ii.

Protection from imported products by taxation barriers 300% for touristic locations and 1200% for other outlets. c. Threat of substitute product i. Alcoholic market: no competing substitutes were available ii. Non-Alcoholic Malt Based: many products were available, but ABC products were differentiated because they are malt based which were perceived as healthier and as more natural than soda sugary drinks. iii. Non-Alcoholic soda drinks: many substitutes were available. Were performing poorly. d. Bargaining power of buyers i. Buyers are limited in choice between the ABC affordable drinks or extremely expensive imported drinks. . Bargaining power of suppliers i. Dina Modern Agricultural company 41% which represents a big percentage of ABC’s supplies. Any conflict will pause a threat on ABC such as shortage in supplies and interruption of production. IV-ABC Market analysis: a. NAMB i. ABC has market dominance since its inception. b. Beer i. Offered as proprietary local brands, brands produced under license and imported labels. ii. ABC has 99. 2% market share c. Wine i. Estimated market demand of 2 million cases (current is only 1 million case) ii. 188% increase in consumption from 1999 to 2000 (after enhancing quality and packaging) iii.

Imports declined by 15% V-Internal Analysis a. Financial i. Good financial indicators 1. Doubled earnings per share 2. 350% increase of the book value per share 3. Quadrupled its production capacity 4. Introduced more than 3o new products 5. Consistent annual earnings growth from 25%-30% 6. 27% returns on invested capital 7. 34% net margin b. Marketing: i. Deep understanding of the market, its segments and its needs. ii. Bandwidth covering the market needs. 1. Spirits 2. Wine 3. Alcoholic Beer 4. Non Alcoholic Beer (NAMB) 5. Soft Drinks iii. High growth rates in some markets: 1. In wine: 30% growth rate per anuum c. HR i.

Professional team of managers with ii. Stocks option for employees and managers to attract highly qualified members iii. Interests alignment of employees with management and stakeholders. d. Brand i. Strong brand presence and awareness in the local market ii. Association with international brands such as Carlsberg. iii. Brand width: it had a product to meet every taste. e. Distribution network i. Strong distribution network 1. Reach: 1200 employee, 500 truck, & 17 storehouses 2. Gouna Distribution and Trading 3. Agencies ii. Super Stores (43 stores) iii. Home delivery f. Production i. Upgraded and expanded facilities 1.

Sharkia Brewery (NAMB & CSD) 900,000 hl 2. Obour Brewery (Alcoholic Beer) 600,000 hl 3. Badr (NAMB) 675,000 hl 4. Ginaclis (wine) 5,500,000 liters (storage capacity) 5. Ginaclis (Spirits) 1,050,000 liters (distillation capacity) ii. Affiliation with expertise bodies improved quality 1. Supervision with Ginestet Groupe on wine production 2. Carlsbery team on beer production g. Management Performance: i. Classified as one of the best 200 best managed small businesses in 2001 ii. Honored with Meed’s Business-to-consumer product manufacturing award in 2002 for business excellence. VI-SWOT: Strengths: -ABC’s monopoly position in the local market Regional presence and dominance for the NAMB line -Excellent financial performance -Excellent profitability rates -Wide variety of products serving every need -Highly qualified managers and employees -Well established distribution & retail network (can be considered as one of the stongest barriers against new entrants) Weaknesses: -ABC’s share prices was undervalued Opportunities: -A potential NAMB market of 350 million Muslim in the MENA region market -A potential market of 11 million Coptic Christians in Egypt -Tourism recovery in the region leading to an increase in consumption -Increase in the consumption rates of beverages Increase in the GDP of local market -The increase in percentage of disposable income -Government promise of not allowing new entrants for the coming 2 years Threats: -Demand instability due to religious and health concerns as well as dependence on tourism -Removing tax barriers on imported beverages -Strict prohibition in advertising alcoholic products in the local media -Religious movements against alcoholic drinks -Repulsion of employees due to religious ideology. Strategic Quest: Al Zayat and ABC at crossroads, torn between selling ABC or buying ABC from Luxor Group! Strategic Alternatives: A.

Selling ABC to Heineken Pros: -ABC would leverage Heineken in: a. International business experience and strong foothold in 160 country b. Facilitation of ABC to access international markets leveraging Heineken resources such as distribution networks, marketing channels, brand association, brand/product introduction, etc -Faster growth and expansion rates by exploiting Heineken resources. -Maximizing value for shareholders Cons: -The company would be perceived as a foreign entity, which might affect brand loyalty. -ABC, will become one of many subsidiaries at Heineken which might have negative effects on ABS such as: c.

Being used in transfer costs operations, making ABC serve other subsidiaries and making losses d. Serving the global strategic goals of Heineken which might not always for the best interest of ABC. B. MBO: Al Zayat acquiring ABC jointly with Banque Misr Pros: -ABC continuing its success story leveraging the experience and tactics of el Zayat. -With the Banque Misr joint venture, the company would be perceived as national entity and would receive more support from the government and citizens. -Maximizing value for shareholders if acquired with the same amount as Heineken group. Cons: -Slower international expansion Religious movement forcing Banque Misr from pulling out from alcoholic (or any non-Islamic friendly businesses). Recommended Action: I would recommend selling ABC to Heineken because Heineken’s resources and international presence will help ABC grow in a sky rocketing speed. At the same time, Heineken’s acquisition maximizes the shareholders value (i. e. Luxor Group) who originally appointed Al Zayat for this purpose. However, ABC and Al Zayat have to make sure that the Heineken’s strategies, goals and interests are aligned with ABC’s and not exploiting ABC to serve any other subsidiaries without a return.

Although, this cannot be guaranteed, yet a deep professional analysis can forecast the type of the relation and if the interests are aligned or conflicting. If Heineken’s interests were conflicting with ABC, then ABC should sacrifice Heineken’s leverage and resources and look for another buyer whose interests are more aligned with ABC. Note: According to the case, Heineken decided to implement the five year plan that has been drawn up earlier by the ABC, which might be a positive indicator that ABC would continue its roadmap for the coming 5 years.

Direct Marketing

A Reported Submitted To Direct Marketing Manager 30th April 2009 1. 0 Executive Summary Telekom Malaysia Berhad as know as TM is one of the largest telecommunications service and Number One information communication technologies providers in Malaysia which offers a comprehensive range in fixed-line, mobile, data, and broadband communication services. Streamyx is one of the products of TM. It is Malaysia popular fixed-line user favorite that have the highest connectivity up to 4. 0Mbps. Streamyx is a wire broadband provided by TM and wireless broadband such as Streamyx Zone™.

Streamyx Zone™ is a wireless broadband that allowed users to access to the Internet any time anywhere. AIDA model in direct marketing is a successful stage of purchases by consumer in personal selling by creating an advertising message which can obtain Awareness, Interest, Desire and Action. These four element model comes from the alphabet AIDA and each element contain different issues and meaning. The budget of perform new campaign have to be calculate accurately so that the company will be able to raise the reputation and increase the sales volume.

There are several new campaign have been suggested such as SMS campaign, telemarketing campaign, and contest campaign. In the SMS campaign user can be obtain the information needed from TM Streamyx such as the latest promotion package, latest information about new technologies, etc. Telemarketing campaign is to build and maintain the satisfactory of customer relationships. Contest campaign is a campaign that allowed user to join the campaign in term of competition. Winner can be getting valuable prizes once they win in the competition. 2. 0 Introduction of Telekom Malaysia Berhad (TM) History

Telekom Malaysia Berhad was founded as a government organization and privatized in 1987. Telekom Malaysia Berhad is one of the largest telecommunications service providers in Malaysia which offers a comprehensive range in fixed-line, mobile, data, and broadband communication services. Telekom Malaysia Berhad as know as TM is the Malaysia Number One information communication technologies provider. Besides that, TM is known as a market leader and offers a comprehensive range of communication services and solution in broadband, data and fixed-lined.

As a market leader, TM emphasis on providing continuous customer service quality enhancements and innovations. Therefore, TM is balance the position of Malaysia as a regional Internet hub and digital gateway for South-East Asia with the extensive global connectivity. TM also involve of Next Generation Network service provider enabling the Group to enhance its efficiency and productivity while providing enriched products and services. (www. tm. com. my) According to Chong. C. W et al (2007), the telecommunication industry in Malaysia has experienced significant growth in recent years.

The use of broadband services in Malaysia was only at 0. 85 percent in 2004 but its usage was targeted to increase to 10 percent by 2008 (Lim, 2004). In addition, the main telecommunication provider in Malaysia, which mean Telekom Malaysia (TM) projected that the number of internet subscribers in the country is expected to reach the 10 million mark in the next five years. This statement is based on the growing trend of internet users in the last three years as Malaysia moved towards advanced information, communication and multimedia services. 2. 1 About Telekom Malaysia Berhad (TM) Products Streamyx is one of the products of TM.

It is Malaysia premier broadband which hooks up Malaysians nationwide with the fast-paced online world. Streamyx provide wide bandwidth gives Malaysians an unsurpassed Internet experience. By using Malaysia’s Number One provider of information communication technologies Streamyx broadband, users able to perpetually online, enjoying unlimited usage for a fixed rate and downloading data at lighting speeds of up to 4. 0Mbps. TMNET Streamyx provide the high-speed connectivity or bandwidth will be able to support most of the broadband applications such as web hosting, video streaming, e-commerce, distance learning and others.

Besides that, Streamyx Zone™ is a broadband service without wire connection. Streamyx Zone™ will be bring users to a whole new mobile lifestyle with wireless broadband internet access at selected shopping malls, eating outlets, convention centers, hotel or at college. What users have to do is just log in at any Streamyx Zone™ sites to get the access for browse the Internet and check on e-mail using laptop, tablet PC and PDA that equipped with a Wi-Fi certified device. 3. 0 Direct and Database Marketing

In the 1980s the rapid growth of direct marketing in the financial services industry and the adoption of the discipline across the whole of business to business. However in today, the fast-moving consumer goods (FMCG) companies, retailers, multi-national industrial multinational and the successful dot com companies, in fact every type of organization, using direct marketing to acquire and develop customers. As the world evolves toward becoming open and unified, the tools of direct marketing are more widely available country by country.

Direct marketing improve the way to successful by creative and innovative to attract customer and improving customer relationship to increase customer loyalty. 3. 1 Definition of Direct Marketing According to Direct Marketing Association (DMA) cited by McDonald, WJ (1998) was highlighted direct marketing is an interactive system of marketing which used one or more than one advertising media to affect a measurable response or transaction anywhere. Direct marketing includes direct connectivity with targeted consumers to obtain an immediate response and grow lasting customer relationship.

However Baker, MJ stated that direct marketing is the process in which individual customers responses and transactions are recorded. In Thomas, B & Housden, M(2002) mentioned that direct marketing is a discipline and subset of marketing which enabled to carry out certain marketing tasks in efficiency way. 3. 2Benefits of Direct Marketing The benefit of direct marketing is direct response. Direct response is a press advertisement or telemarketing. Press advertisement is providing readers to fill up in a coupon to make contact with a company or it provide a FOC phone number to call to place an order or to request product details.

Direct response in television advertisements as known as DRTY is designed to motivate viewers to pick up the phone and call to place an order. The fact that generated by direct response is make it possible for direct marketers to control the time of placing the advertisement. Other benefits that direct marketers have access to a broader range of media than their mass marketing counterparts and it could be open up an additional creative opportunities. Direct response’s characteristic would be facilitating multi-media planning and many direct marketing campaigns are now run in a series of different media. . 3Direct Marketing Theories AIDA model stated in Tapp. A (2008) is representing the successful stages of purchases by consumer in personal selling by creating an advertising message which can obtain Awareness, Interest, Desire and Action as the alphabet AIDA. AIDA begins with alphabet A which stands for awareness is an important element to create an awareness message on the advertising. The purpose of awareness in AIDA model can be use to grab the attention of the consumers. Headlines is one of the technique use in advertisement is to hold the step of the reader.

Impressive and creative headline will help a particular company to attract the curiosity of readers. Headline that been shown in appendix A, the product that been offering is a combo package provided to the customers. Customers may have inquisitiveness what combo that been offering, the headline clutch a direct-response from the readers from moving on. The product offered illustrating in the table form because it’s simple and easy to understand for consumers. Second element in AIDA model is I can be referred as interest. Interest can e defined as the prospects look at the created ad with inspired the consumer’s curiosity. The artwork or layout used in advertisement would lead the reader naturally from the headline or the illustration to the copy and build up the interest from readers. The artwork can be a short paragraph-less to intimidate reader to hold their steps. In appendix B, Streamyx is using the bold alphabetical headline in term of sharp, simple, and clear such as “Everything At Your Finger Tips”. This headline will be able to know about what kind of advertisement it is.

Therefore, short message as a brief description was used in leaflet and it allows readers to compare the package offered by Streamyx and its several competitors. During the interest stage, the prospect is still vague their bets. The frame of mind is one of appraisal which tends to be made on a logical and calculating basis. Desire is different in this stage and the prospect started to has some emotional feelings for the product or service. Emotion will takes over from logic and the powerful motivations leading towards a sale are in place with desire.

Besides that, conviction is the required emotion needed for prospect. Consumer have to be convinced about they have nothing to fear and must be convinced them that they getting value for money. According to Appendix C, the Streamyx combo leaflet stated that save cost, free modem, 1,200 areas for Streamyx ZoneTM and widest coverage in Malaysia to convince consumer to subscribe the Streamyx combo. Last stage of AIDA model will be ‘A’ which is stand for action. There are two creative strands to generating action which are emphasizing the need to act straight away and minimize the effort required.

Encouraging immediacy means that now get the attention from the reader must be seize them with inspiring an action. According to Nash (1995) stated that ‘Delay kill response’ if the prospect put down the advertisement or logs off the website maybe to look at it another time will lost the chances to sale. There are some creative techniques which can be use to maximize the sense that time is short such as free activation for Streamyx combo, free gift and free modem until at specific date. 4. 0New Campaign Budget

The cost to perform the new campaign need to be plan accurately so that the company will able to make profits and increase the sales volume. Campaign that carries out will manage to build long term relationship between the company and customers. The below table shown the new direct marketing campaign for TMNET Streamyx budget plan. Direct Marketing CampaignCost/000 (RM)Size of audienceTotal Cost (RM) Short Message Service (SMS) •New Customers •Existing Customers 1 15,000 15,000 Contest 801,00080,000 Telephone marketing to existing customer620,00072,000

Total Costs RM 167,000 5. 0 New Direct Marketing Campaign for TMNET Streamyx Direct marketing’s main objective is to build up and maintain customer relationship with new or existing customers. Customer service plays an important role in direct marketing, for most industry customer loyalty is an important issue because companies make money from a repetitive pattern of purchase rather than from just one sale. Streamyx need to carry out new campaign to build brand name awareness for the consumers in the marketplace.

Streamyx is segmented consumer into business line and home line which everyone can surf the internet. 5. 1 SMS campaign for TMNET Streamyx to get direct response from consumer TMNET Streamyx can be implanting new direct marketing campaign by using the Short Message Services (SMS) as an advertising media to interact with consumers by first. E-marketing as know as electronic-marketing refers to “the achievement of marketing objectives through the use of electronic communication technology” (Chaffey, 2003, p. 318). Nowadays, e-marketing is ften used as a tool of direct marketing, this means that “Marketing through advertising media that interact directly with consumers, generally calling for the consumer to make a direct response” (Kotler et al, 2002, p. 784). Mobile advertising has basically been categorized into push-and pull-models as it shown in (Barnes 2002). During the pull-model campaign, TMNET Streamyx would be sending the information requested by the consumer. As in the push-model, TMNET Streamyx works out as take the initiative to send latest message to the consumer.

However, TMNET Streamyx will be request consumers permission like asking them to choose either want to receiving commercial message or not. TMNET Streamyx was concerned about the consumer permission while giving the consumer an opportunity to stop receiving commercial message at any time (Tezinde et al, 2002). This approach can be considered to reduce individual’s privacy concerns (Sheehan and Hoy, 2000). It can act as a trust-building alternative to more effective information control (Milne et al, 1999).

Barwise and Strong (2002) identify six ways of using SMS for advertising, which is: i. Brand Building ii. Special Offers iii. Timely Media “teasers” competition iv. Polls/Voting v. Product and Services vi. Information Requests TMNET Streamyx is able to build a good relationship with the new or existing customer by implementing the six ways of using SMS for advertising. According to Enpocket (2005a), “text message campaigns are allowed to deliver 15 per cent response rate which estimate twice as much as direct mail or e-mail campaigns”. In facts, the text message is 50 per cent more successful at building brand awareness than TV and 130 per cent more than radio” (Enpocket, 2005c). Many benefits can be bringing out with the satisfaction of the customer. “Satisfied customers are less price sensitive, buy additional products, are less influenced by competitors and stay loyal longer (Zineldin, 2000)”. 5. 2 Telemarketing campaign, to build and maintain TMNET Streamyx customer relationship Besides that, TMNET Streamyx can use the telemarketing to build and maintain the satisfactory of customer relationships.

Telemarketing can be an important part of integrated marketing communications program. The objective of telemarketing is to reach customers in a personalized, cost-effective interaction that meets customer needs. Telemarketing involves in telephoning a potential customer to achieve a sales goal, potential customer for TMNET Streamyx is important because potential customer able to pass the word of mouth to others new customer. By using the telemarketing TMNET Streamyx are able to build and maintain the customer relationships. Telemarketing can be either inbound or outbound.

TMNET Streamyx should implement the outbound telemarketing, because an outbound telemarketing is a basic as an employee calling out to the existing customer to subscribe a new product offer by TMNET Streamyx. Outbound telemarketing takes the initiative and asks for the sale. TMNET Streamyx is one of the products of TM, so TMNET Streamyx can grab this opportunity to get cheaper rate of calling out for the customer of Streamyx user to offer the new products. According to Prabhaker, P. R. , et al (1997), nowadays the markets of business competition require the use of advanced technologies.

Telemarketing is a faster and easier way to obtain the customers’ response on the product and services on TMNET Streamyx. According to McDonald (1998), telemarketing is the media to increase peoples’ awareness and is the largest of direct marketing media. As to increase the awareness TMNET Streamyx need to key in the data of every customer which able to help TMNET Streamyx to build long term relationships with new or existing customer. 5. 3 Contest Campaign Lastly, TMNET Streamyx can design a contest for the customers. This campaign is targeted to all the new or existing customer of TMNET Streamyx.

Implementing the contest will help to increase the numbers of customer who have interest on applying broadband that offer by TMNET Streamyx. Customer will visit the TM Company whereby there are benefits and great prizes to be won after the winners who able to answer the question provided from TMNET Streamyx. This contest campaign is design help TMNET Streamyx attract more new customers and able to maintain relationship with the existing customer. Moreover this contest campaign TMNET Streamyx can provide in online so that customer are able to browse the Streamyx website to join the contest campaign.

Providing the contest campaign online are able to help TMNET Streamyx to get the customer’s databases easily, because before customer joining in the contest customer are require to fill up the personal detail form so that the company able to contact the winner by the particular detail provided from the customer. According to Roberts, M. L. , (1999) stated that “database marketing is a segmentation process carried out a computerized data of customers and prospects using statistical analyses and models in order to target individual instead of entire segments of customer or prospects”.

The process of establishing and using a customer database is a continuous process of data collection, refinement and use. Customer database allows TMNET Streamyx to identify the potential customers and able to help TMNET Streamyx keeps up to date on the customer profile. TMNET Streamyx need to maintain the database arranged accordingly, so that whenever customer have any inquires regarding products or services TMNET Streamyx able to provide feedback just in a click second. 5. 0 Conclusion Direct marketing is growing rapidly as providing the quality of products and services.

As serving the customers’ life more convenient and easier, direct marketing need to keep updating the customers’ database which able to serves customer with new products and benefits. Moreover, maintaining customer relationship is important for TMNET Streamyx to build longer term relationship with the new and existing customer. As a conclusion, TMNET Streamyx as one of the largest telecommunications service providers in Malaysia which offers a comprehensive range in fixed-line, mobile, data, and broadband communication services should apply more new direct marketing campaign which able to improve the customer acquisition. ,599 words 6. 0 References Armstrong, G. , and Kotler, P. , 2005, Marketing-An Introduction, 7th edition, Pearson Education International Baker, M. J. , 2003, The Marketing Book, 5th edition, Butterworth-Heinemann. Bamba, F. , and Barnes, S. J. , 2005, “SMS advertising, permission and the consumer: a study”, Journal of Business Process Management, Vol. 12 No. 6, pp. 815-829. Barnes, S. J. (2002), “Wireless digital advertising: nature and implications”, International Journal of Advertising, Vol. 21 No. 3, pp. 399-420. Barwise, P. and Strong, C. 2002), “Permission-based mobile advertising”, Journal of Interactive Marketing, Vol. 16 No. 1, pp. 14-24 Chaffey, D. (2003), E-Business and E-Commerce Management, Prentice-Hall, London Enpocket (2005a), “Direct Response Report”, available at: (www. enpocket. co. uk), retrieved on 4th April 2009 Enpocket (2005c), “Brand performance of SMS advertising”, available at: (www. enpocket. co. uk), retrieved on 4th April 2009 Herman, S. , 2007, “SMS reference: keeping up with your clients”, Vol. 25 No. 4, pp. 401-408. Kotler, P. , and Armstrong, G. 2006, Principles of Marketing, 11th edition, Pearson International Edition, New Jersey Kotler, P. , Armstrong, G. , Saunders, J. and Wang, V. (2002), Principles of Marketing: European Edition, Prentice-Hall, London McDonald, W. J. , 1998, Direct Marketing-An Integrated Approach, International Edition, Irwin McGraw-Hill Milne, G. M. , Boza, M. E. and Rohm, A. (1999), “Controlling personal information in marketing databases: a consumer perspective”, Proceedings of the American Marketing Association Winter Meeting Roberts, M. L. , & Berger, P. D. , 1999, Direct Marketing Management, 2th edition, Prentice Hall

Sheehan, K. B. and Hoy, M. G. (2000), “Dimensions of privacy concerns among online consumers”, Journal of Public Policy & Marketing, Vol. 19 No. 1, pp. 62-73 Streamyx-Main (http://www. streamyx. com. my/main. php? id=main), retrieved on 30th March 2009 Streamyx| Related Products| Streamyx Hotspot, (http://www. streamyx. com. my/related_products/related_products. php? id=streamyx_hotspot), retrieved on 1st April 2009 Tapp, A. , 2008, Principles of Direct and Database Marketing-A Digital Orientation, 4th edition, Pearson Education Tezinde, T. , Smith, B. and Murphy, J. 2002), “Getting permission: exploring factors affecting permission marketing”, Journal of Interactive Marketing, Vol. 16 No. 4, pp. 28-36 Thomas, B. , & Housden, M. , 2002, Direct Marketing in Practice, Oxford, Butterworth-Heinemann Welcome to TM, (http://www. tm. com. my/personal/internet/), retrieved on 1st April 2009 Welcome to TM, (http://www. tm. com. my/about-tm/corporate-profile/default. asp), retrieved on 2nd April 2009 Welcome to TM, (http://www. tm. com. my/about-tm/corporate-profile/corporate-profile. asp), retrieved on 2nd April 2009 Zineldin, M. , 2000, TRM Relationship Management, Studentlitteratur, Lund

Consumer Behavior in Thailand Concerning Food

Consumer behavior is the study of what, how, when, and why people buy or consume. Psychology, sociology, socio-psychology, anthropology and economics are the main elements/variables of this study. It is the attempts to understand the buyer decision processes as well as decision making process, both individually and in groups. In addition to that, it also tries to assess influences on the consumer from groups like family, friends, and society in general. One most important issue about consumer behavior is concerning food consumption.

It is clear that food consumption behavior of people in Thailand has changed considerably since the last 15 years. Nutrition Survey conducted in 1995 showed that the average fat consumption per day for the Thai people was less than 30% of the total calories. However, according to a later study on nutritional status, the number has significantly risen since then. Changes in food consumption behavior of Thai people can be observed from their diets. In the past, the main diets of Thais are mainly consisted of vegetables and grain.

Some well-known and popular dishes like Pad Kraprao, Tom Yum, Nam Prig, and Som Tum are rich in fibers and vitamins and do not contain much fat or protein. Therefore, the amount of protein and fat consumption was relatively small then. Later when globalization and capitalism has become predominant in Thailand, many Western cultures flooded the country. It was no exception with eating habits. While the country was keeping up with the developed world in term of economic growth, the openings of new department stores around the city were followed by the start of many Western style restaurants and dining.

Most Western foods are mainly made of cheese, butter, wheat flour, and meat. All of these are the major source of calories and fat while they lack fibers and vitamins. Another important consequence of such economic development was the flourish of media in this consumption-driven society. Advertisements and commercials also play a very important role in the shift of consumer behavior. They stimulate over consumption in both kids and adults. As we can see, there are more and more advertisements relating food on the TV, magazines, and also the Internet. Again, most of them are fast foods and sweets.

The main objective of these advertisements is to establish a social value of fast foods consumption by making it becomes a fashion. Use of marketing techniques is very effective indeed. A few years earlier, it could be said that fast food franchises like McDonald’s, Pizza Hut, and KFC were very popular. They had once become a symbol of modern generation and urban lifestyle. However, even though those fast food chains still exist today but they have already lost their popularity as many new competitors like Sizzler, Fuji, and MK could offer better value for health-conscious consumers.

The rise of Seven-Eleven has made fast food become even more reachable. Also most of them are priced competitively. Hot dogs, sausages, hamburgers, and sandwiches are some of their popular menus. It is interesting to point out that these menus contain a lot of protein, fat, and calories. However, more choices have also become available as we can see that the company has introduced a line of Thai food like E-Zy Go as well. Most fast foods contain high calories and, possibly, too much sodium. Therefore, eating too much fast food can lead to various diseases.

Heart disease, hypertension, obesity, and diabetes are some common diseases that are caused by improper eating habit i. e. eating too much fat, protein, and carbohydrate with too little vegetable and fiber intake. Cancer in digestive system can also be found in people who have improper diets even though the relationship is not so explicit. To sum up, eating too much fast food is surely bad for health. However, most Thais are changing their eating habits toward more health-conscious lifestyle.

The evidence of the statement is that people have more choices choosing what to eat and so many restaurants offering healthy Asian style cuisines are becoming very popular while fast food franchises like McDonald’s and KFC are losing it popularity. Even though this indicates a good sign, consuming to much food would never be good for health. Our health will remain in good condition by choosing foods and drinks in amounts that help maintain a healthy weight and balancing calorie intake with physical activities.

Covert Advertising

ABSTRACT De Dana Dan, Wake Up Sid, Dhoom, Phir Hera Pheri and Matrix are some excellent examples of movies with covert advertising. Brands such as Coca Cola, ICICI Bank, Domino’s, Nokia, Aston Martin and Suzuki have placed themselves in these movies. Nowadays, these tactics are common in most of the films. Some very well managed product placements appear to be quiet natural, if not logical. But some seem to be badly inspired by a commercial spin-off, with all the negative consequences it may generate on the audience. Take for instance, the Hollywood flick, ‘What Women Wants’.

This Mel Gibson starrer has a Nike commercial as a part of the script. It gets with the script so well that you don’t realize you’re watching a commercial camouflaged in the screenplay. Now the Bollywood flick, the girls beating the boys fighting sequence in ‘Chak De’ has been referred to as the McDonald’s fight scene merely because it takes place in one of the outlets. Again there is no mention of McDonald’s in the entire film as it has been seamlessly embedded. Table of Contents INTRODUCTION4 Objectives of the study5 COVERT ADVERTISING5

Some Latest Indian Examples6 Advantages of Covert Advertising9 Failure in Covert Advertising10 Covert Advertising in Video games11 Connection between Brands and Films12 Six elements of strategy for in-film branding and communication13 Covert Advertising is different from Celebrity Endorsement14 PRODUCT PLACEMENT : A TECHNIQUE OF ‘COVERT ADVERTISING’14 Types of Product Placement15 CASE STUDY16 RESEARCH ANALYSIS17 CONCLUSION20 ANNNEXURE22 REFERENCES23 INTRODUCTION Over the years Advertising has emerged as a key component of integrated Marketing communication.

Moreover, it has adjusted with the changing economic environment and consumer behavior. The clutter in the product market and media has made the task challenging for marketers to reach their consumers. Thus both the Media and Advertiser’s search for innovative advertising techniques led to ‘Covert Advertising’. Covert Advertising is a medium through which branded products are placed in movies, which is visible to consumers without any distraction. Leveraging on the entertainment value, emotional quotient of the film and its psychological impact on viewers has led the advertisers to utilize this medium.

The phenomenon is gaining momentum due to its clutter free feature and advantages of celebrity endorsement for the product or brand in a movie. This advertising technique brings in an additional source of income for film producers, advertisers, corporate’s and it has proved to be a technique to strengthen their brand. A few firms get product placement at no cost by supplying their product to the movie company (Nike does not pay to be in movies but often supplies shoes, jackets, bags, etc).

Scripts are tailor made for the desired brand so that when they are incorporated they look natural. It is done through special mention in the programs, placement of logo or may be a shot of that particular brand. Movies have been used as the most popular platform for product placement. Showman Subhash Ghai’s Yaadein showcased brands like Pass-pass and coca-cola. But recall the Rishi Kapoor starrer Karz by the filmmaker, which had an entire song sequence with the Emami banner at the backdrop.

Similarly time and again we have witnessed so many brands like ICICI, Yamaha, Pepsi, Lays in movies Aakhein, Baghban, Dhoom, Khushi and Krissh respectively. Product placement, as the numbers suggests is bringing revolutionary change in entertainment economics. Objectives of the study The following are the objectives of this research study :- •To study the present scenario of covert advertising in the world. •To study the future prospects of covert advertising and their scope for the multimedia. •To study the techniques used by the film makers, directors and companies. To measure the success of advertising campaign of brands in Terms of consumer appreciation. •To study the determinants of specification factors which can decide the success of both the companies and movies. COVERT ADVERTISING Covert Advertising is the inclusion of a product, brand name or the name of the firm in a movie for increasing memorability of the brand and instant recognition at the point of purchase. It is an advertising technique in which the companies pay a fee or provide service in exchange for a prominent display of their product.

For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise’s character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Some Latest Indian Examples: Swades, for instance, shows the hero holding a FedEx packet while travelling in a train in India. Waqt mentioned brands such as Archies, In another movie Hungama had Videocon, Coca-Cola in the film Taal, Cadbury in Parineeta, etc.

Maruti Swift made its Indian debut with the release of the film Bunty aur Babli. Rumour has it that Maruti had delayed the launch of this new model to time it with the release of the film. SRK using Santro cars in a RNBDJ and Chalte Chalte. Hollywood example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them “classics,” because the film is set far in the future. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used.

Similarly, product placement for Omega Watches, Ford, VAIO and BMW. Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. Hayabusa in Dhoom, John Abraham uses Hayabusa in the movie as a thief, from that time only many of Indians came to know about that bike. MISSION IMPOSSIBLE – Lamborghini Domino’s Pizza in Phir Hera Pheri Domino’s is known as much for the quality of its pizzas, as for its promise of “delivery within 30 minutes or free”. Paresh Rawal—who is also the Domino’s brand ambassador—was seen in the movie happily munching on a Domino’s pizza.

On being asked how he could afford a pizza even though he was broke, he informed that after ordering the pizza he hid himself till 30 minutes passed. Thus he got the pizza free even though the delivery boy had arrived well in time. The execution of this scene not only communicated the Domino’s value proposition but also created a light moment in the film with the seamless integration of branding and entertainment. Baghban for ICICI Bank, Amitabh Bachchan is shown as a trustworthy, reliable and focused ICICI bank employee who is dedicated to his customers. ICICI is visible for around 8-10 minutes in the film. Consumer electronics and computers

The 2006 film Casino Royale features many Sony product placements throughout, all characters use VAIO laptops, Sony Ericsson cell phones and GPSs, BRAVIA televisions, and Bond uses a Cyber-shot to take photos. Apple’s products frequently appear in films and on television. In video games, products that most often appear are placements for processors or graphics cards. For example in EA’s Battlefield 2142, ads for Intel Core 2 processors appear on map billboards. In the video game F. E. A. R all of the laptops have a Dell screensaver on them. Tourism New Zealand as a destination was positioned well in the movie ‘Kaho Na Pyar Hai’.

In fact such was the impact it became a popular holiday destination after that. Previously it was not widely spoken of or considered as potential location among the film makers or tourists from India. Now it is being considered by students for higher studies and also by low skilled job seekers. The place is now being looked at by new perspective among Indians. Advantages of Covert Advertising •The message has a wide reach and a long life with declining cost per exposure •It is cheaper than overt advertising or sponsorship. •If the programme or film is a success advertising gets a wider audience. The product becomes linked to the film or programme and the Ideology/lifestyle inherent in that text. This attracts people to buy into the image through the product. •Has an immediate effect but it can be short term Sponsorship of television programmes. Failure in Covert Advertising Ta Ra Rum Pum : After you see drivers and cars layered by brands of their sponsors, Ta Ra Rum Pum a film on racing cars would seem like the perfect avenue to showcase such similar branding. After all seeing these brands is what we’ve come to expect, but corporate honchos didn’t seem happy just with ‘being there’.

So they must’ve insisted on special close-ups and zooms for their brands. As a result we get a good dose of Castrol, Goodyear and Chevrolet periodically. Yaadein : Covert Advertising in Video games Today, advertisers are much more interested in the $24 billion video game industry. Spending on in-game product placement was estimated at $300 million this year, with projections of $1 billion in spending by 2010. Nielsen ratings in 2003 showed a 7% decline in television viewing among 18 to 34 year-old males. This decline was directly attributed to the growing popularity of video games. 6% of males 18-34 own at least one game console, as do 80% of males ages 12-17. In 2006, 62. 3 million game consoles were sold. Currently, there are over 148 million gamers. As gamers age, become parents and continue to play games, older demographics become more highly represented while increasing the overall reach of the video game medium. PEPSI : CARS : CASTROL : And so on…… Connection between Brands and Films There is a evidence of shortened attention spans and a greater efforts to break through the clutter of multitudinous brands and media vehicles.

The best way to deliver the message is to catch the customer off-guard when the rational defenses are down. The best to do so is to use the emotional gate rather than the rational gate. The rational gate examines the advantages, benefits, features and seeks value for money; the emotional gate is all about trust, love, identification and belief. These aspects have been leveraged by all kinds of brands wherein movies and brands flash identical messages at their target audiences. There is a need to examine synergies between the brands and films.

The successful integration of product placement within the film’s storyline has a long history – the first example being the yellow Rajdoot bike used in Raj Kapoor’s Bobby and Subhash Ghai’s Hero and Karz. Hollywood also leveraged brands such as BMW(Bond movies), Jaguar, Ford, McDonald in Eddie Murphy (Coming to America), Ray Ban (Tom Cruise in Risky Business and Mission Impossible), Starbucks coffee, AOL, AT & T and lots in advertising world arena. Artistic integrity is crucial for successful brand successful brand placements and the operation has to be woven into the script.

There is no fixed formula but the factors that are taken into consideration during the negotiation stage include: cast and credits; size of the projects and the producers; timing of the release; brand impact; number of screen during release and post – release phase; and the possibilities of brand associations through contests and promotions. Depending on the content of the film and its story line, the agency can sketch a profile of viewers who could appeal to the targeted viewers. This is followed by a 360 degree marketing plan for cross promotions during the various stage of a film’s release.

Six elements of strategy for in-film branding and communication •The brand should be integrated in the script of the film, whether part of the entire theme or a particular situation. •It should be in a selective and judicious manner and there should not be an overdose of the brand and its communication; •Under no circumstance should the relevance of the brand be compromised. •While dividing the choice of film for finalising in-film branding, one should check the track record of the film producer and the director as well as the story line. One should try to be sensitive to the feelings and attitudes of filmgoers and viewers. •Ensure that absolutely nothing is done to reduce the credibility of the brand under the pretext of creativity or entertainment. Covert Advertising is different from Celebrity Endorsement The celebrities endorse products and brands with commercial reasons, which normally comes in the breaks in television programmes or cinema halls. The phenomenon of zipping and change in television usage behavior due to surfing during the commercial breaks has reduced effectiveness of television commercials.

Similarly commercials of cinema halls are found to be of low involvement as audience takes them as blocks between the reasons of visiting the cinema hall and the time available to them entertainment. So the brand communication and the entertainment product are viewed differently from audience of both media. Brand placements provides an opportunity where the involved audience gets exposure to the brands and products during the natural process of narration of movie or television commercial. PRODUCT PLACEMENT : A TECHNIQUE OF ‘COVERT ADVERTISING’

A product placement is the inclusion of a product, brand name or the name of the firm in a movie for increasing memorability of the brand and instant recognition at the point of purchase. It is an advertising technique in which the companies pay a fee or provide service in exchange for a prominent display of their product. Product placement appears in plays, film, television series, music videos, video games and books. Product placement occurs with the inclusion of a brand’s logo in shot, or a favorable mention or appearance of a product in shot. This is done without disclosure, and under the premise that it is a natural part of the work.

Most major movie releases today contain product placements. The most common form is movie and television placements and more recently computer and video games. There are three ways product placement can occur : • The placement simply happens This placement occurs without any type of formal contractual agreement to place a particular product or brand. The likely scenario in this instance involves some member of the cast or crew selecting a product to use in a scene because it will enhance the scene though the product itself may not be seen or presented in a favorable light. The placement is arranged and some of the product serves as compensation. This type of placement a particular product is shown in the Movie/ Serial and no extra amount is paid for that. The product itself serves as compensation. • The placement is arranged and there is financial compensation. In this type of product placement the company has to pay for the placement apart from the product. Types of Product Placement Corporate Advertising: To improve company reputation. Ex – Taj Hotels used for grand parties in movies, Lenovo used in game shows like KBC.

Product/ Service placement: To demonstrate the characteristics of a product/ service. Showing a particular Bank (like ICICI in KBC) or Dominos in Phir Hera Pheri. Cross Advertising: To include facts, opinions or statements in a plot. Discussing a forthcoming movie like ‘Kuch Toh Hai’ in a television serial like ‘Kyunki Saas Bhi Kabhi Bahu Thi’ is an Indirect promotion for the movie. Negative placement : To present a competitor’s product in a negative context. It is generally not intentional. For instance if a particular flight crashes in a particular plot in the movie, it is not intentional.

Innovation placement: To introduce a new product. Ex Swift Car was introduced in the movie ‘Bunty Aur Babli’. CASE STUDY Fashion (2008) No. of Prints – 700 Budget – 220 million Cast – Priyanka Chopra, Kangana Ranaut, Mugdha Godse, Arbaaz Khan Director – Madhur Bhandarkar Producer – Ronnie Screwvala “Fashion” has got an ‘A’ certificate that limited his audience size, but director-producer Madhur Bhandarkar who made this Rs. 220 million movie, earned as much as Rs. 5 million (Rs. 8. 5 crores) from in-film advertisement alone. A co-production of UTV Motion Pictures and Bhandarkar Entertainment, “Fashion” has six prestigious brand placements – clothing brands Kimaya and Reebok, Lenovo laptop, Sunsilk shampoo, Cellucom and LG Electronics. The brands have been chosen carefully so they are relevant to the scenes where they will be displayed, without causing a jarring note. RESEARCH ANALYSIS RESEARCH DESIGN Purpose of the study The research purpose indicates that this study is primarily descriptive.

A descriptive study is undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation. The research draws some conclusions from the data collected which makes it descriptive. Extent of researcher interference The extent of researcher interference is minimal in this study. Respondents were made aware of the topic “product placement”. Oral examples like the brand Nikon which is displayed on Ranbir Kapoor’s camera in the movie Wake Up Sid will be explained. The events were studied as they normally occur. Data collection method Questionnaire

The questionnaire was primarily and some questions were framed by the researchers through brainstorming. A five point Likert-type scale was used, with ‘strongly agree’ at point one; ‘agree’ at point two; ‘neither agree nor disagree’ at point three; ‘disagree’ at point four; and ‘strongly disagree’ at point five. Another five point scale with points like “always, mostly, sometimes, rarely and never” was used. Certain direct questions were given only two options “yes” or “no”. Data analysis This data was entered into SPSS, and the required computations had been completed in SPSS itself.

Descriptive statistics like mean, median and standard deviation. Also graphical representations like pie charts, bar graphs and histograms were used. Cross tabulation was executed. Study setting The research was carried out in a natural environment with minimal interference of the researcher which shows that it is a field study in a noncontrived setting. SAMPLE Our sample consists of 50 students, 25 male and 25 female. The motivation for this selection was that respondents were thought to be an appropriate sample since young adults (18 to 24 years of age) are avid film attendees.

Respondents also possess the disposable income to attend films. Product placement in films is therefore an effective way to target young, affluent and well educated consumers. The data thus collected is primary in nature. It was entered into SPSS, and the required computations were completed in SPSS itself. ANALYSIS Age of Respondent Maximum respondents are of the age 21. Do you notice products placed in a movie Most of the respondents notice the products placed in the movie Does product placement disrupt the flow of movie and irritate you?

Most of the respondents feel that product placement rarely hinders the flow of the movie Do you know that product placement is a method of Advertising? Almost all respondents are aware of product placement as a method of advertising Other Findings Discuss with others after the movie It is inferred that 83. 3% females always discuss products after watching movies which is very high compared to 16. 7% males who rarely discuss the products. Influenced by The respondents have ranked talk shows to be the most influencing medium.

The next influential media are movies and music videos. Soaps and theatre plays are the least influential. Factors that influence your buying behavior The respondents give primary importance to the product and then the brand followed by the celebrity. Product brought after watching them in movies It is seen that females mostly have purchased FMCG products whereas men have purchased electronic goods. CONCLUSION Advertising occupies a major place in Integrated Marketing Communication strategy of corporate It has evolved in sync with the changing media environment.

They are constantly in search of innovative technique which has grabbed the attention in recent years is ‘Covert Advertising’. A conclusion drawn from the research was that products placed prominently in films were better recognized than those placements placed subtly within the context of the film. Another aspect closely considered in this research was the effect product placements have on the realism of the film. Why are covert advertising successful? Low cost per exposure. Catches the audience when its rational defenses are down. It can help target particular employees as movies are made keeping in mind different genre’s of people.

Movies are an expensive affair, and any source of revenue is welcome by film makers. ANNNEXURE REFERENCES •http://academic. brooklyn. cuny. edu/economic/friedman/advertising. htm# •http://www. visionenterprise. biz/advertisingindia. htm# •http://www. idef. org/industry/mediaentertainment. aspx •http://www. pwc. com/in/eng/insol/publ/IndianEntertainmentIndustry-ExecSumm. pdf •www. agencyfaqs. com •www. financialexpress. com •Advertising, Edited by Prateek Kanchan, ICFAI University Press •http://www. slideshare. net/sujalahv/brand-placement-in-moviescase-study-of-br

Land Ke Ball`

askaksk1. Introduction 1. 1 NIC 1. 2Organisation 1. 3Introduction To Inventory Management 1. 3. 1Project Description 1. 4Component Assigned 1. 4. 1Goal Of The Proposed System 1. 4. 2Limitation of the Existing System 2. System Analysis 2. 1Requirement Analysis/ SRS of the Component 2. 1. 1Problem Definition 2. 1. 2Performance Requirements 2. 1. 3System Requirements 2. 1. 4Acceptance Criteria 2. 2Feasibility Study 2. 2. 1 Economic Feasibility 2. 2. 2 Technical Feasibility 2. 2. 3 Behavioral Feasibility 2. Proposed System Functionality 3. System Design 3. 1Design Goals 3. 2Functional Flow/Flow Chart 3. 3ER Diagram 3. 4Data Flow Diagram 3. 5Database Design 3. 6Data Dictionary 4. Technologies Used 5. Testing and Debugging 5. 1 Goals and Objectives 5. 2 Statement of scope 5. 3 Test Case 5. 4 Testing Process 5. 5 Debugging 6 . Implementation 6. 1 Conversion 6. 2 Direct Implementation 6. 3 Module Diagram 7. Scope and Limitation 8. Conclusion 9 User Manual And Screen Shots 9. 1 User Manual . 2 Input/Output Interfaces(Screen Shots) 10 . Annexure 1. Introduction 1. 1- NIC National Informatics Centre (NIC) of the Department of Information Technology is providing network backbone and e-Governance support to Central Government, State Governments, UT Administrations, Districts and other Government bodies. It offers a wide range of ICT services including Nationwide Communication Network for decentralised planning, improvement in Government services and wider transparency of national and local Governments.

NIC assists in implementing Information Technology Projects, in close collaboration with Central and State Governments, in the areas of (a) Centrally sponsored schemes and Central sector schemes, (b) State sector and State sponsored projects, and (c) District Administration sponsored projects. NIC endeavours to ensure that the latest technology in all areas of IT is available to its users. NIC Headquarters is based in New Delhi. At NIC Headquarters, a large number of Application Divisions exist which provide total Informatics Support to the Ministries and Departments of the Central Government.

NIC computer cells are located in almost all the Ministry Bhawans of the Central Government and Apex Offices including the Prime Minister’s Office, the Rashtrapati Bhawan and the Parliament House. Apart from this, NIC has various Resource Divisions at the Headquarters which specialize into different areas of IT and facilitate the Application Divisions as well as other NIC Centres in providing state-of-the-art services to the Govt. At the State level, NICs State/UTs Units provide informatics support to their respective State Government and at the District level lie the NIC District Infomatics Offices.

NIC has conceptualised, developed and implemented a very large number of projects for various Central and State Government Ministries, Departments and Organisations. Many of these projects are continuing projects being carried out by various divisions of NIC at New Delhi Headquarters and State/District centres throughout the country. Some of the most important note worthy projects, which offer a glimpse of the multifaceted, diverse activities of NIC, touching upon all spheres of e-governance and thereby influencing the lives of millions of citizens of India are given below : Agrictural Marketing Information Network (AGMARKNET). •Central Passport System. •Community Information Centres (CICs). •Computerised Rural Information Systems Project (CRISP). •Court Information System (COURTIS). •Department of Agriculture Network (DACNET). •Examination Results Portal. •India Image. •Land Records Information System (LRIS). •National Hazardous Waste Information System (NHWIS). ?Public Grievance Redress and Monitoring System (PGRAMS). ? Spatial Data Infrastructure (SDI). •Video Conferencing. Web Site of NIC http://indiaimage. nic. in/

Assignments for Bba – 1 Smester

Bachelor of Business Administration-BBA Semester 1 BB0001– Marketing – 2 Credits (Book ID: B0078) Assignment Set- 1 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q. 1Give an example of any organization that practices the Societal Marketing Concept. Briefly describe its marketing strategy and explain why it is successful. [10 Marks] Q. 2Imagine that you purchased a car recently. Describe the different stages that you went through in the process of buying the car. [10 Marks] Q. Explain how channels of distribution for a product like automotive tyres are different from channels of distribution for a product like cigarettes. [10 Marks] Bachelor of Business Administration-BBA Semester 1 BB0001 – Marketing – 2 Credits (Book ID: B0078) Assignment Set- 2 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q. 1What are the essential differences between Sales Promotion & Advertising? What are their relative advantages and disadvantages? [10 Marks] Q. Select any organization of your choice in the service sector and briefly explain its marketing strategy in terms of the three additional “Ps” of the services marketing mix. [10 Marks] Q. 3In which stage of the product life cycle is the product category of cell phones? Why? What are some of the strategies being used by Indian marketers? [10 Marks] Bachelor of Business Administration-BBA Semester 1 BB0002– Organization Behaviour – 2 Credits (Book ID: B0077) Assignment Set- 1 (30 Marks) Answer all the questions. Q. 1Discuss the nature of organizations. (10) Q. 2Discuss the types of organizations? (10)

Q. 3Explain Vroom’s Expectancy Theory. (10) Bachelor of Business Administration-BBA Semester 1 BB0002– Organization Behaviour – 2 Credits (Book ID: B0077) Assignment Set- 2 (30 Marks) Answer all the questions. Q. 1Explain the difference between leaders and managers? (10) Q. 2Explain the determinants of personality? (10) Q. 3 Write a detailed note on Transaction Analysis(10) Bachelor of Business Administration-BBA Semester 1 Subject Code – BB 0003 Subject Name -Organization, Competition and environment- 2 Credits (Book ID: B0088) Assignment Set- 1 (30 Marks) Note: Each question carries 10 Marks.

Answer all the questions. Q. 1) “Nature of economic system and environment effects a business organization”- elaborate the statement. [10 Marks] Q. 2) write short note on any two of the following: [10 Marks] a) European Monetary Institute (EMI) b) ECB Instruments c) The European Commission Q. 3) Explain Monetary Policy and how it effects a Business organization? [10 Marks] Bachelor of Business Administration-BBA Semester 1 Subject Code – BB 0003 Subject Name -Organization, Competition and environment- 2 Credits (Book ID: B0088) Assignment Set- 2 (30 Marks)

Note: Each question carries 10 Marks. Answer all the questions. Q. 1How an organization response to market forces? [10 Marks] Q. 2write short note on any two of the following: [10 Marks] a) The council of ministers b) The Multiple Exchange rates c) Free float Q. 3 “Each organization has an objective” -elaborate the statement[10 Marks] Bachelor of Business Administration-BBA Semester 1 BB0004– Communication Skills in English – 2 Credits (Book ID: B0010) Assignment Set- 1 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions. . Name 4 different ways in which you think reading skills would be useful in a managerial environment, explaining how. (10 marks). 2. Select an article of around 500 words in length from a business publication and write a precis, condensing the article to one fourth its size. Keep in mind the principles of precis writing. Attach the original article with your precis. (10 marks). 3. Write a cover letter to a prospective employer of your choice, applying for a specific advertised position, along with your one page resume. ( 10 marks). Bachelor of Business Administration-BBA Semester 1

BB0004– Communication Skills in English – 2 Credits (Book ID: B0010) Assignment Set- 2 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions. 1. Imagine that you have to make a presentation to graduating management students on “Career Prospects for MBA Students”. Explain how you will use Engleberg’s 7P approach to prepare an outline of your presentation. (10 marks). 2. As a Sales Manager, write a one page memo to the Vice President Sales of your company, requesting that the size of the sales force be increased for a particular product. (10 marks). 3.

You have learnt about the relative advantages and disadvantages of oral and written communication. For each of oral and written communication, describe two different situations in the workplace when it would be more appropriate, explaining why. (10 marks). ASSIGNMENTS BBA- BB0005- SEM 1 Computer Fundamentals (4 credits) Set I Marks 60 Each question carries 10 marks 1. What is Information Technology? What is Data? 2. Describe different types of Information Computing Models. Discuss about the followings – (i)E-mail (ii)World Wide Web (iii)Web Browser (iv)File Transfer Protocol (FTP) (v)Chat . What is Number system? Convert (234)10 to octal system 4. What are the characteristics of a computer? How many types of computers? 5. What do you understand by primary memory as well as secondary memory? What are the functions of the primary memory? What are the difference between primary memory and secondary memory? 6. Describe the security features available in Windows XP. ASSIGNMENTS BBA- Sem 1 BB0005 Computer Fundamentals (4 credits) Set II Marks 60 Each question carries 10 marks 1. What do you understand by competitive information? What do you understand by internal information?

What are the different levels of information? Describe them. 2. Convert the following: a)(309)10 ? (? )8 ? (? )2 ? (? )16 3. What are the applications of computers? Describe them in details. 4. Describe about three different secondary storage devices in details. 5. What do you understand by translator? Describe. What do you understand by Operating Systems? What are the facilities offered by an OS? What are the components of an OS? 6. Compare & Contrast between Windows XP Professional as Windows Home Edition. BBA – I Semester BB0006- Financial Accounting – 4 Credits (Book ID: B0429) Assignment Set- 1 (60 Marks)

Note: Answer all the questions. 1. Under cash basis of accounting, revenue and expense recognition would occur when cash is received and disbursed. Contrast cash basis of accounting with accrual basis. Give suitable examples. (10 Marks) 2. Compliance with GAAP helps maintain creditability with creditors and stockholders because it reassures outsiders that the firms’ financial reports accurately portray its financial position. In this context explain what is GAAP and what is the structure of GAAP? (10 Marks) 3. Rajaram quit his job and started Woodcraft Company (service firm).

The transactions of the business for September are as follows: (20 Marks) 20XX Sept 1 Began business by investing cash Rs10000 in exchange for 1,000 shares 4 Paid two months’ rent in advance for a shop Rs. 2,000 5 Bought equipment for cash Rs. 1,200 7 Bought supplies on credit Rs. 700 10 Received for remodelling a kitchen Rs. 8,600 (revenue from services) 14 Paid for an advertisement that appeared in the local newspaper Rs. 1,400 17 Received for furnishing an office room Rs. 1,200 (revenue from services) 23 Billed customers for work done other than on cash terms Rs13,100 25 Paid wages to assistant Rs. 1,500 28 Paid electricity charges Rs. 240 29 Received part payment from customers billed on Sept 23, Rs. 4,800 30 Declared and paid a dividend Rs. 2,500 Required: a. Prepare journal entries for the above transactions b. Post the journal entries to the ledger c. Prepare trial balance 4. There are various reasons why bank balance as per the cash book does not tally with the bank statement.

Elaborate the reasons for difference. (10 Marks) 5. Distinguish between the term ‘dishonour’ & ‘discounting’ of Bills of Exchange (10 Marks) BBA – I Semester BB0006-Financial Accounting – 4 Credits (Book ID: B0429) Assignment Set- 2 (60 Marks) Note: Answer all the questions 1. Bill of Exchange is a written order for payment issued by the creditor to his debtor. Explain the parties to a Bill of Exchange and what is meant by acceptance of a bill. . (10 Marks) 2.

Write short notes on: (10 Marks) a. Intangible assets b. Fictitious assets and Wasting assets 3. From the following information of Jansons Ltd on 31st March 2003, you are required to prepare the Trading, Profit and Loss a/c and Balance Sheet: (20 Marks) RsRs Opening Stock 5,000Capital 89,500 Bills Receivable 22,500Commission (Cr. 2,000 Purchases 1,95,000Return Outward 2,500 Wages 14,000Trade expenses 1,000 Insurance 5,500Office Fixtures 5,000 Sundry Debtors 1,50,000Cash in Hand 2,500 Carriage Inwards 4,000Cash at Bank 23,750 Commission (Dr) 4,000Rent and Rates 5,500 Interest on Capital 3,500Carriage outward 7,250 Creditors 98,250 Sales 2,50,000 Stationery 2,250 Bill Payable 15,000 Return Inward 6,500Closing Stock 12,500 4. Explain the role of computers in Accounting (10 Marks) 5. On 1st June 2007, Mr. Ram drew a bill of exchange for 2 months for Rs 2,00,000 on Mr. Rahim. After acceptance the bill was endorsed over to Mr. Xavier. On the date, the bill was met. Show the journal entries in the books of all the parties. (10 Marks)

Zakat Accounting Creating Business Wealth

The basic principle of zakat on business wealth is based on urud at-tijarah (trade goods). Zakat on business wealth should be paid once a year (haul) at the rate of 2. 5% as in the case of zakat on money wealth. Business wealth subjected to zakat includes trading assets such as trade goods (or stock on trade); cash in hand or in bank; debts or credit extended to customers or others (i. e. debtors). According to Al-Qardawi (1999), trade liabilities should be deducted from assets and only the net is subjected to zakat (i. . working capital or net current assets) to truly reflect the financial position of the business. There is another method particularly used in Arab Saudi namely the net owner’s equity method. Its includes all the owner’s equity such as fully paid and issued share capitals, reserves, retained profits and profit for the year, and it excludes net fixed assets (after depreciation), investment in another entity and loss for the year. In modern business environment, both methods may not be a reliable method of measurement.

It should be adjusted by adding back to the items such as, the short-term debts used to finance fixed assets to pay off long-term debt or reduce capital stock and subtracting long-term debts used to finance current assets. In Malaysia, zakat is within jurisdiction of the state and Majlis Agama Islam (MAI). The authorities should impose a standard regarding to zakat issue in order to narrow the areas of difference among firms in the disclosure method of zakat measurement and presentation of financial information in financial statements.

The Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFIs) has issued Financial Standard for zakat (FAS 9) effective from 1 January 1999 where the standard makes it clear that the scope of standard is to provide guidelines for the accounting measurement, disclosure and determine the zakat base. In order to be applicable in Malaysia this standard need to be modified so that it will not be in conflict with the existing legal requirements of the country. The method of determine the zakat base used in Malaysia are Net Asset and Net Owners Equity as highlighted in the above.

The FAS 9 said that the valuation of assets subjected to zakat should be based on cash equivalent value rather than on historical value, and with provision for bad debts rather than gross receivables. The standard also requires zakat to be treated as a non-operating expense of the Islamic banks and be included as a deduction from net income and the unpaid zakat should be treated as a liability. In conclusion, the article has argued for the need of an accounting standard for zakt applicable for Islamic business entities such as Islamic banks in Malaysia.

The Urinary System

“The Urinary System” The Urinary System is a group of organs in the body concerned with filtering out excess fluid and other substances from the bloodstream. The organs included in the urinary system are the kidneys, ureters, bladder, and urethra. The kidneys are two bean-shaped, reddish brown organs about the size of your fist. The renal capsule, a tough capsule of fibrous connective tissue, covers the kidneys. The ribcage protects the kidneys which are located in the back just above the waistline. There are three major parts of the kidney: renal cortex, renal medulla, and the renal pelvis.

The renal cortex is the outer layer. The renal medulla is the inner region. And the renal pelvis is a basin-like area in the central part of the kidney. The ureters are tubes that drain urine from the kidneys to the bladder. The ureters send the urine in small spurts into the bladder, then small fold in the bladder mucosa act like valves preventing backward flow of urine into the kidneys. The bladder is a hallow, muscular, elastic organ that sits on the pelvic floor. The bladder can hold up to 18 ounces of urine in a healthy bladder. Urine is temporarily stored in the bladder.

The urethra is a muscular tube that connects the bladder with the outside of the body and main job is to remove urine from the bladder. Women tend to have more urinary tract infections than men. This is due to men having a longer urethra than women. The males urethra is about eight inches long while a females is only about one-two inches long. The Filtration of Urine: There are a number of conditions that can affect the urinary system. Some types of kidney conditions are glomerulonephritis, nephrolithiasis, renal failure, and renal hypertension. Some associated conditions are diabetes insipidus and diabetes mellitus.

Glomerulonephritis is inflammation of the kidney glomerulus. There are two types of glomerulonephritis, poststreptococcal and chronic. Poststreptococcal glomerulonephritis appears ten-fourteen days after a streptococcal infection. No bacteria is found in the kidneys but inflammation is caused from an immune reaction in the glomerulus. Chronic glomerulonephritis can result in high blood pressure, aluminuria, and renal failure. Nephrolithiasis is kidney stones which usually consist of acids and or salts. Kidney stones are caused by increased calcium or high levels of uric acid in the blood.

Doctors usually prescribe painkillers such as morphine to help with the pain of passing the stones through the urethra. Sometimes when stones are too large to pass through and get lodged in the ureter, bladder, or renal pelvis they need to be removed by surgery or lithotripsy. Renal failure is when the kidney fails to excrete wastes and keep up with filtration. Renal failure can be acute or chronic, reversible or progressive, mild or sever. When all medical measures have been tried doctors will put the patient on hemodialysis, peritoneal dialysis, and renal transplant.

Hemodialysis is an artificial machine that receives waste-filled blood from the bloodstream, filters it and returns the blood back to the bloodstream. Peritoneal dialysis uses a catheter in the abdominal cavity to introduce fluid into the bloodstream which causes waste in the capillaries of the peritoneum to pass out of the bloodstream and into the fluid. The fluid is then removed buy the catheter. Renal hypertension is high blood pressure resulting from kidney disease. High blood pressure caused by abnormal conditions like glomerulonephritis is called secondary hypertension.

Essential hypertension is when the cause for high blood pressure is unknown. Diabetes insipidus is caused by inadequate secretion or resistance of the kidney to the action of antidiuretic hormone (ADH). Major symptoms of this condition are polydipsia and polyuria. Diabetes mellitus is inadequate secretion or improper utilization of insulin. Major symptoms of this condition are glycosuria, hyperglycemia, and also polydipsia and polyuria. In conclusion the urinary system is very important to the body because it allows waste to be taken out of the body.

Choosing Retail Locations for Shopping Malls in India

EXECUTIVE SUMMARY Background Store location and real estate markets are two most important areas of concern for a retailer by the virtue of the fact that real estate is the largest fixed investment for a retailer. For a retailer, being at the right place at the right time facilitates the development of sustainable competitive advantage. The decline in real estate prices in last 4-5 years has boosted the morale of the retailers. Because of this there has also been an increase in the supply of property for retail locations.

For every kind of a retailing format there is a series of tradeoffs to be evaluated, in terms of costs and value of site while selecting the location. The location of the mall has become one of the decisive aspects of the retailing business. The location of the shopping mall spells its success or failure. A mall in a remote area would suffer from weak sales, poor cash flow and increased marketing and advertising expenses. Whereas, put the mall in a good location and the business will thrive with all the expectations of the retailer surpassed

The aim of this paper is to discuss in detail various aspects of real estate in the retailing industry with a specific objective of discussing all the aspects that are taken into consideration while selecting a location for shopping malls in India. In order to prioritize the factors responsible for the selection of a location for a shopping mall, a small market survey will soon be carried out at Ahmedabad wherein the following shopping malls/retailers will be taken as the sample: 1. Fun Republic 2. Pantaloons 3.

Jade Blue 4. Bodyline 5. Twinkle Paper Outline The paper would start with a brief introduction to the retail industry in India and the role/importance of real estate in it. Following this would be a discussion on the state of Indian shopping malls. In the series of topics to be covered, next would be a discussion on three forms of retail locations, i. e. High Street, the Destination Location and Convenience Location. Next to it would be an overview of the retail property selection and property markets in India.

Following this would be a detailed discussion on the above-mentioned market research soon to be carried out at Ahmedabad for gauging the importance of major factors responsible for the selection of a location for a shopping mall. The findings of the survey would form the discussion on current site selection trends in the Indian retailing industry. The paper would end with a discussion on the future of the real estate requirements of the Indian retailing industry. REAL ESTATE IN THE INDIAN RETAILING INDUSTRY Retailing is all about being at the right place at the right time. Basically, it is all about three Ps – Property, Property and Property.

While deciding on a business proposition, real estate issues are the most crucial ones by the virtue of the fact that real estate is the largest fixed investment for a retailer. Location related decisions in retailing are said to be the most fundamental decisions because it facilitates getting the merchandise to the ultimate consumer at the right place, at the right time, in the right quantities, and at the right price. Choosing the location is the most important decision made by a retailer for a number of reasons. First of all, location is one of the key considerations for the customer.

For different requirements a customer’s location preferences may differ. Second, location decisions are strategically important for the retailer because they help in developing sustainable competitive advantage over the competitors that cannot be copied at any cost. Traditionally most of the retail locations were located on the High Streets. High Streets have been the favorites of retailers because they provide easy accessibility to the consumers. But, the exorbitant prices of properties on the High Streets and lack of availability large space have compelled retailers to opt for smaller properties.

As a result of consumers demand for better and more quality and shopping ambience, retailers have started moving to the outskirts of cities in order to provide the entire range of products in large retail formats. This trend is moving at a considerable pace with most new malls – established or in the pipeline – being located away from the High Streets. In India, the real estate market has, for the first time, witnessed a sustained downward trend in the prices of property in major Indian cities, in past seven years. There has been a decline by 40 per cent to 50 per cent during this period.

This has led to a dearth of prime properties at prices that please. Demand of property from retailers has been one bright spark in the property markets in this period of softening real estate markets. In the following paper an attempt has been made to study and highlight the current property trends in the Indian retailing industry, including highlighting the key problem areas and making specific recommendations to potential retailers, investors and real estate agencies. CHOICES AVAILABLE TO THE RETAILER IN INDIA Different retailing formats have different requirements of the kinds of locations they look for.

While choosing the site the retailer is required to evaluate a number of trade-offs in terms of the costs and value of the site in question. More importantly, the convenience-for-the-customer is the most important factor for the retailer In terms of the location, a retailer has three basic options at his disposal, namely: 1. High Streets 2. Destination Locations 3. Convenience Locations Besides these, the other forms of retail locations include carts, kiosks, RMUs (Retail Merchandising Units) and tall wall units etc. The following discussion would take into account all the three types of locations in the Indian context.

High Streets Initially, the retailing outlets in India were mostly concentrated in the busiest parts of the cities. Known as the High Streets or Downtown, these locations are the hub of city’s majority of commercial activities and witness heavy traffic flow. In the Indian context, most outlets are located on the high streets. The earlier high streets now mainly comprise of offices and centers of commercial activities. Residential areas have a miniscule presence on the high streets. Mumbai’s Bandra has come up to be as the hottest high street in the metro.

The biggest advantage of high streets is the easy access that they provide to the shopper. Destination Location Better known as the One-Stop Shop, a Destination Location is a store that provides the entire gamut of merchandise to the shoppers. Shopping malls are the best examples of a destination location. This concept is very common in India and has existed for a long time now. But, the way its developers and the concerned agencies have perceived it has been entirely wrong. In India, selling the property has been the primary aim of the real estate developers and the government bodies concerned with it.

Basic facilities like parking, security and maintenance etc. were overlooked in the process. But, the things have been changing in the recent times. With the organized retailing coming up as a booming industry, the attitude of the developers, government bodies and corporates, towards shopping centers, has witnessed a drastic change. With retailing industry taking a proper shape in India, a number of projects of opening up modern malls are either on the verge of completion or are in the pipeline. Best examples of modern Indian malls are the Crossroads in Mumbai, Ansal’s Plaza in New Delhi and Fun Republic in Ahmedabad.

Convenience Location Internationally referred to as the Mom-N-Pop stores, these are typical neighborhood stores. Catering to the daily needs of the customers, they are generally located in residential areas. In India, the Kirana shops are the best example of convenience locations. METHODOLOGY Problem Definition The purpose of this paper is to study and highlight the current property trends in the Indian retailing industry and making specific recommendations to potential retailers, investors and real estate agencies.

Research Questions & Hypotheses The problem definition given above was further fragmented in the form of research questions in order to develop a clear approach. Hypotheses were formed based on the research questions developed. RQ#1: Do retailers, besides other aspects, take the customers perspective into account while selecting a retail location? HYPOTHSIS: Retailers take customers perspective into account while opting for a retail location. RQ#2: Do the current trends in the supply of real estate properties to the Indian retailing industry decide its fortune?

HYPOTHSIS: The current trends in the supply of real estate properties to the retailing industry work as decisive factors in the success of the business. RQ#3: Do customers take the location related aspects into consideration while choosing their shopping locations? HYPOTHSIS: Customers choose their shopping locations because of their easy accessibility. RQ#4: Does the brand image of the retailer play a substantial role in attracting the target customers to a particular location, especially to distant locations? HYPOTHSIS: Brand image plays a major role in attracting customers to a particular retail location.

Specific Research Objectives In the light of the research questions framed and the hypotheses developed, following were some of the specific objectives kept in mind while carrying out the study and compiling the paper: 1. To prioritize various factors associated with real estate decisions in choosing a location for shopping malls in the Indian context. 2. To study the relevance of the shopper’s perspective in the decision making process of choosing a retail property, by a retailer. 3. To study the role and importance of a retailer’s brand image in attracting customers to a particular location.

Type Of Research Both Descriptive and exploratory research was used in compiling this study. While exploratory research helped in developing the hypotheses through the analysis of secondary data, descriptive research was used in order to study the current property trends in the Indian retailing industry. Type Of Data For collecting Primary Data questionnaires were administered on the samples in order to gauge their views on real estate issues in the industry. Whereas, for Secondary Data use of various publications, journals, articles and the Internet was made. Sampling Design I.

Population: The target population for this market survey included all the managers from the retailing industry and the real estate agents living in Ahmedabad. II. Sampling Frame: The sampling frame for this study was the list of the store managers/operations managers of the retailing outlets covered during the survey. III. Sample Size: As the population was limited in this case, a small sample of five retailers in Ahmedabad was taken. IV. Sampling Technique: For the purpose of this survey, Non-probability sampling technique of Quota Sampling was employed as the sample size was small and fixed and the sampling unit was clearly defined.

Research Method Employed Survey Research was employed to carry out this survey, wherein managers (samples) were interviewed personally, on the phone, over the Internet and through printed questionnaires. Secondary Data was collected by making use of various magazines, journals and web sites. CURRENT TRENDS (FACTS & FINDINGS) Be it any retail organization, the conventional technique of choosing a retail location remains the same. There bound to exist certain differences in terms of the level of integration with the site selection process.

Site decisions have to very quick and they cannot wait for any sort of study or tying up with a merchandise plan, as any delay in execution could mean loosing out a golden opportunity. Following is a discussion on the current and emerging trends in the attitudes of retailers towards site selection for shopping malls, based on a small survey carried out in Ahmedabad. Shopping Malls: The Buzzword Shopping malls are here to stay. Retailers have now realized the importance of One-Stop shopping and entertainment facilities for the consumers.

Almost all the major retail chains, big business houses and corporates are setting up malls of international standards in all major Indian cities. Potential Demand From The Region And Competition Potential demand, from the area under consideration, is a very important factor that is taken into consideration while choosing a location. This is done by making use of the data available on demographics and the demand for various products from different sections of the society within the given region. A number of Indian research agencies like NCAER, ORG-MARG and IMRB supply such data to the retailers.

The retailers also consider the competition in the chosen region in order to ascertain their break-even and ROI. Accessibility, Terms Of Occupancy and Legal Considerations Accessibility, terms of occupancy and legal considerations are three key factors taken into account while choosing a site for a mall. The location of the mall should be easily accessible by the customer. The location of the shopping mall spells its success or failure. A mall in a remote area would suffer from weak sales, poor cash flow and increased marketing and advertising expenses.

Whereas, put the mall in a good location and the business will thrive with all the expectations of the retailer surpassed. Terms of occupancy play a major role in deciding upon a particular property. Whether the property is to be leased on a long-term or a short-term or is it to be purchased, are the fundamental decisions that the retailer has to take right at the first thought of opening up a mall. Legal considerations are also highly important in choosing a location as rules and regulations differ from one place to another.

A retailer may face stringent legal formalities if he wishes to open a mall at the center of the city, whereas the same may be lenient for the outskirts of the city. Use Of Demographic Classification While choosing a location for a shopping mall in India, the retailers classify cities and regions on the basis of Socio-Economic Classes (SECs). They also classify the prospective area in terms of urban population, income level of households, bank deposits in the region, sales of consumer goods and penetration of credit cards. Decline In Real Estate Prices

A sharp decline in the real estate prices in major Indian cities in last 7 years has acted as a stimulant in prompting the retailers to come up with new properties. This has come as a blessing in disguise for the retailers as they can now acquire prime properties at highly discounted prices that were never before. Emergence Of Family Entertainment Centers (FECs) The One-Stop shopping and entertainment concept has given birth to Family Entertainment Centers (FECs). All the upcoming malls are merging shopping with entertainment by adding multiplexes and game parlours to shopping malls.

The purpose is to make the family visit the mall and offer them all that they need ranging from entertainment, food, culture and shopping at one place only. Focus On Providing Add On Facilities Indian retailers, now-a-days, are trying to offer as much of value and experience to their customers as they can. To facilitate this they are pumping money in acquiring larger spaces so that they can make shopping a much better experience by providing facilities like parking space and air-conditioning etc. Long-Term Leasing

Exorbitant prices of prime properties have made retailers discover leasing as a much cost effective option. Still there is some resistance faced by the retailers with regard to leasing. But, with the entry of established retailing chains, corporate houses and international chains, the property owners are now becoming optimistic towards leasing of properties to retailers. Retailers have started considering leasing as the norm for the future. Suburban Shift The key trends in major Indian cities show an increasing population shift to the suburbs.

The market in the suburbs has a high potential for the development of shopping malls that offer shopping-cum-entertainment facilities to their customers. The retailers have already identified this and they are on the move to grab their share. More and more retailers are trying to establish their malls in the suburbs. THE ROAD AHEAD… Also known as the Sunrise Industry, the retailing industry in India holds a bright future in the light of the benefits that it can get from the current and emerging trends in the Indian property markets.

Following is a discussion on what future does the industry holds if it taps the opportunities offered to it by the developments in the Indian property markets. Emergence Of One-Stop Shopping Avenues Retailers are now gradually realizing the need and importance of One-Stop shopping malls for the shopper where, if not all, most of his needs could be fulfilled. This has led to opening up of One-Stop malls, known as the Family Entertainment Centres (FECs). Consumers can now have much better experience in shopping and entertainment. Essel Group’s, Fun Republic at Ahmedabad is one of the best examples of a One-Stop shopping mall.

Expected Large Supply Of New Retail Space With an ever-increasing entry of corporates and big business houses into the retailing industry and emergence of new malls that meet international standards, large supply of new retail space is expected. This would definitely act as a stimulator in prompting existing retailers and prospective retailers to come up with new properties. Plummeting Real Estate Prices As discussed earlier, plummeting real estate prices have come as a blessing in disguise for the retailers as they can now acquire prime properties at ighly discounted prices that were never before. In the last 6-7 years, prices of properties in almost all the major Indian cities have declined by 40 per cent to 50 per cent. This has also stimulated the supply in order to meet the increasing demand for properties at prices that please. Long-Term Leasing Property owners have now become optimistic about the long-term leasing of properties for retailing since the corporates; big business houses and international chains have started entering the Indian retailing industry.

For example, all the malls in Gurgaon are being leased by the retailers from DLF Properties. Opportunity For Global Players With relaxations in the taxes and restrictions applicable to foreign investors in real estate and operations in India and the depreciation of the Indian currency against the US Dollar, global players now find it lucrative to enter Indian retailing market by acquiring prime properties at highly discounted prices. Marks & Spencer’s was the first international chain to come up with a store in India. BIBLIOGRAPHY Levy, Michael; and A. Weitz, Barton.

Retailing Management. New Delhi: Tata McGraw Hill Publishing Company Limited, 2002. 754 pp. Gilbert, David. Retail Marketing Management. Harlow: Prentice Hall, 1999. 356 pp. “Retail 2000-01”, New Delhi: The Economic Times Knowledge Series, 2001. (CD-ROM). Malhotra, Naresh K. Marketing Research: An Applied Orientation. Delhi: Pearson Education, 2003. 763 pp. Black, Ken. Business Statistics: Contemporary Decision Making. Cincinnati: South-Western Thomson Learning, 2000. 819 pp. Rao, S. Srinivas. Handbook For Writers And Editors. Ahmedabad: Ahmedabad management Association, 2002. 139 pp.