PRATIBIMB                                          The Reflection of ManagementFINANCE | GENERAL MANAGEMENT | HUMAN RESOUR...
T. A. Pai Management Institute                                      Manipal, Karnataka                               About...
PRATIBIMBTAPMI‖s e-Magazine - is the conglomeration of the various specializations in MBA (Marketing,                     ...
Director’s     MessageIt is always a pleasure to witness that certain efforts of the students are sustained andcarried for...
Editor’s CornerDear Readers,                                                                            Editor in Chief   ...
ContentsIndian Logistics The Way Forward – Challenges & Opportunities               7by Md Umair Ansari & Rahul Jain, IIFT...
Indian Logistics The Way                                                 Forward – Challenges &                           ...
Why Logistics sector is important to India‖s              why the Indian logistics sector prefers road over railEconomic g...
India                                                               Indicator            India       China        Brazil  ...
LIBOR’s Labour’s Lost                                              by Anuj Narula and Prakash Nishtala, NMIMS Mumbai      ...
reported for LIBOR during the 2008 credit crunch that      the need for a reference rate in the debt market wasmay have mi...
other players (refer to Exhibit 1) of the game. Theimmediate action in the current context should be toidentify the hidden...
Marketing Lessons from                                                    Olympics London 2012                            ...
Olympics‖ broadcast was enough. Or printing a simple        Lesson #3: Strike an emotional chord with thepamphlet or secur...
month compared to 1million views for Adidas.               sponsors did just that. Adidas‖ Team GB created a              ...
Mass vs. Class:                                                               Branding for BOP                            ...
Economic Con-           Low Gross domestic                       Beliefs              Ground Reality        straints      ...
5: The BoP Brand Strategy                                 brand.                                                          ...
innovation that cater to the duality of functions as                                                           well costs ...
If Tata Nano is a product that redefined car making        Branding at the base of pyramid: A Zimbabweanand business mode...
Personalization: 8th P of                                                       Service Industry                          ...
ELEMENTS OF PERSONALIZATION                       avail to VVIP guest. Requirements , designs and                         ...
Overall welcome                                                 Bulletin, 134(1), 61-76.                                  ...
INTERVIEW                                 Mr. Sanat Satyan               Research Associate, Equity Research - Oil & Gas s...
looking for more opportunities in emerging                     communicate, it is of no use! Technical skills likemarkets,...
there is a long way to go for the industry in thisregard.During recession, some of the major Wall Streetbanks were accused...
Disha 2012                                         The Learning Experience                                                ...
the ones with our college faculty. They were friendly,   Before we actually started the work for Disha, we tookcordial and...
figure who just needs to tell them what needs to be       Referencesdone, I used to delegate the entire responsibility. Fo...
Horizon 2012                                                                    Money Matters                             ...
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
Pratibimb october2012
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  1. 1. PRATIBIMB The Reflection of ManagementFINANCE | GENERAL MANAGEMENT | HUMAN RESOURCE | MARKETING | HEALTHCARE | OPERATIONS | SYSTEMSLIBOR’s Labour’s LostBy Anuj Narula and Prakash Nishtala, NMIMS MumbaiBook Review of The Google StoryBy Madhukara Holla , TAPMI Exclusive Interview of Mr. Sanat SatyanResearch Associate, Equity Research - Oil & Gas sector,NomuraMass vs. Class: Branding for BOPRevisitedBy Unnikrishnan Nair and Utkarsh Sachdeva, TAPMI A Students’ Initiative Pratibimb | October 2012 | 1Volume II, Issue XIV October 2012 A Monthly e-Magazine
  2. 2. T. A. Pai Management Institute Manipal, Karnataka About TAPMIT. A. Pai Management Institute (TAPMI) is a premier management institute situated inManipal and is well known for its academic rigor and faculty-student interaction. TheInstitute has been recently ranked amongst top 1 per cent of B-schools in India and 4thin the South Zone by The Week Magazine.Founded by the visionary, Late Shri. T. A. Pai, TAPMI‖s mission is to provide muchneeded impetus to the task of building professional management capability in thecountry. In the process, it has also played a role in strengthening the existingeducational and health infrastructure of Manipal. Our MissionTeam Pratibimb is committed to excellence in post graduate management education,research and practice by nurturing and developing global wealth creators and leaders.We shall continually benchmark ourselves against the best-in-class institutions. Weshall foster continuous learning and reflection, achievement-orientation, creativeinterdependence, and respect for diversity with a holistic concern for ethics,environment and society.Pratibimb | October 2012 | 2
  3. 3. PRATIBIMBTAPMI‖s e-Magazine - is the conglomeration of the various specializations in MBA (Marketing, Finance, HR, Systems and Operations). It is primarily intended to provide insights into the plethora of knowledge that relate to the various departments of Management and to give an opportunity to the students of TAPMI and the best brains across country to exhibit their creative cells. The magazine also strives to bring expert inputs from industries, thereby bringing the academia and industry together. Pratibimb the e-Magazine of TAPMI had its first issue in December 2010. The issue comprised of an interview of well known writer Ms. Rashmi Bansal along with a series of articles by students and industry experts like Madhu Sudan Rao (AVP-Delivery, Mahindra Satyam) & Ed Cohen who is a global leader and chief learning officer who led Booz Allen Hamilton & Satyam Computer Services to the first rank globally for learning & development . It also included ahugely successful and engrossing game for finance geeks called “Beat the Market” to bringout the application based knowledge of students by providing them the platform where theywere expected to predict the stock prices of two selected stocks on a future date. Themagazine is primarily intended for the development of all around management knowledgeby providing unbiased critical insights into the modern developments.TAPMI believes that learning is a continuous process and is not limited to the four walls ofthe classroom. This viewpoint is further enhanced through Pratibimb wherein studentsmanage and contribute to create a refreshing learning environment outside the classroomswhich eventually leads to a holistic development process. The magazine provides acompetitive platform and opportunity to the students where they can compete with the bestbrains from various B-Schools in the country. The magazine also provides a platform forprominent industry stalwarts to communicate their views and learning about and from therecent developments from their respective fields of business which in turn helps to create acollaborative learning base for its readers.Team Pratibimb is committed in continuing this initiative by bringing in continuousimprovement in the magazine by including quality articles related to various managementissues and eventually creating a more engaging relationship with its readers by providingthem a platform to showcase their talent.We invite all the best brains across B-Schools to be part of this initiative and help us take thisto the next level.Pratibimb | October 2012 | 3
  4. 4. Director’s MessageIt is always a pleasure to witness that certain efforts of the students are sustained andcarried forward; Pratibimb is one such. The oft-beaten track, “We are here to learn,” ends upas a mere platitude when there are no visible actions and documentation. Whereas there isno dearth of actions at TAPMI, documentation is not something that many—other thanscholars—choose to engage in; it is normally viewed as uninteresting, drab and a drudgery.TAPMIans have proved that they are equally capable of actions and of documentationwithout losing the intellectual flavour of it.Scholarship is too important a phenomenon to be left to scholars alone, especially in the fieldof management. As future practicing managers who will be engaged in rigorous action indifferent fields of business, TAPMIans have manifested both the penchant to produceresearch works and also get their counterparts in other leading business schools tocontribute their thoughts to this endeavour. In this regard, TAPMIans have trulydemonstrated the evidence for creative interdependence, an important aspect of TAPMI‖smission.I sincerely appreciate the students and the faculty of TAPMI who have made Pratibimb apossibility through their scholarly works, co-ordination efforts and support. I wish the teamthe very best.Dr. R. C. NatarajanPratibimb | October 2012 | 4
  5. 5. Editor’s CornerDear Readers, Editor in Chief Sushmit SinhaUPA’s economic blitzkrieg perfectly coincided with a special event oncampus. Described as “a true corporate event which had far too many Marketing & Advertisingvariables to be managed” – Horizon 2012, the annual finance conclave of Manish MishraTAPMI conducted on 22nd September was a grand success. Mr Sushil DesignShah (Head – Banking and Finance, First Source) also adds thatTAPMIANS have “displayed an excellent temperament in running the Abhishek Dubeyprogram, something which is critical in corporate careers”. Horizon 2012 Creative & Cover Designsaw the participation of eminent persons from the area of finance who Namrata Mahapatraengaged in panel discussions and guest lectures. Team Pratibimb wouldlike to thank Nishith Maheshwari of PGP-2 who is an active member of Communicationsthe Finance Forum for sharing his experience in this issue and DivyanshuJayakrishnan T R of PGP-2 who has sought an exclusive interview from Varun Anantfellow alumnus Mr Sanat Satyan (PGDM 2008, Senior Analyst, Nomura)on the sidelines of the conclave. Sub-Editors Abhishek RaghupungavAt the Late Show with Dave Letterman, British Prime Minister David Aditya BhatCameron jokingly narrated how his government has ‘shamelessly’ Arun Stephenleveraged the success of the London Olympics to bring in investors. Devi KailasSankalp Parihar and Kirti Dua’s article Marketing Lessons from London Kannan VenkatOlympics looks at the event with a different view. Britain’s PR strategy Pallavi Prasadmay have worked at last and it is especially a refreshing change from the Rithwik Krishnakumarmoribund Royal ceremonies. This issue’s Best Article Contest winners areTAPMIANS Unnikrishnan Nair and Utkarsh Sachdeva who have Publishingthoroughly analysed the BoP segments in India in their article Mass vs. Vandna SoniClass: Branding for BoP Revisited - debunking common myths thatmarketers harbour. On behalf of our entire team, I wish to congratulatethem on their wonderful piece. Faculty AdvisorsTeeming with variety, the October edition has a rich assortment of items. Prof. Chowdari PrasadSecond year student Madhukara Holla offers a spectacular starter kit to Dean (Branding and Promotions)“the Google Phenomenon” in his review of the bestseller – The GoogleStory. Harsha Vatnani has shared her valuable experiences from the HCL Prof. Vinod Madhavan Asst. Prof. , MarketingEmerging Women Leaders Conference which she attended at NOIDA andChandrakumar N, the key person who, along with his team, bore the Prof. Srivatsa H Sherculean responsibility of hosting DISHA, TAPMIs annual HR conclave Associate Prof. , Marketingalso shares his personal learning from the 2-day event. Team Pratibimbwould like to thank Utkarsh Sachdeva. Utkarsh, PGP-2, has been Prof. Vrishali N Bhatinstrumental in helping our team with deployment of a project Asst. Prof. , Economics & Financemanagement tool which has streamlined much of our processes. Our lead Prof. Animesh Bahadurtimes have fallen thanks to his technocratic prowess! Asst. Prof. , Human ResourcesStay updated, like our page to hear more from us at Prof. Sanjay Choudharihttp://www.facebook.com/pratibimb.reflecting.management Asst. Prof. , OperationsWe would like to thank all faculty members who have provided theirvaluable feedback to help maintain the standards we have strived to Prof. Mohan Kumar V Associate Prof. , Systemsachieve. Also, send in your valuable suggestions or feedback topratibimb@tapmi.edu.inEnjoy Reading!~ Sushmit SinhaPratibimb | October 2012 | 5
  6. 6. ContentsIndian Logistics The Way Forward – Challenges & Opportunities 7by Md Umair Ansari & Rahul Jain, IIFTLIBOR‖s Labour‖s Lost 10by Anuj Narula and Prakash Nishtala, NMIMS MumbaiMarketing Lessons from Olympics London 2012 13by Sankalp Singh Parihar & Kriti Dua, Great Lakes Institute of ManagementMass vs. Class: Branding for BOP Revisited 16by Unnikrishnan Nair and Utkarsh Sachdeva, TAPMIPersonalization: 8th P of Service Industry 21by Arpit Bansal, SIMS, PuneInterview : Mr. Sanat Satyan 24Research Associate, Equity Research - Oil & Gas sector, NomuraDisha 2012 : The Learning Experience 27by Chandrakumar N, TAPMIHorizon 2012: Money Matters 30by Nishith Maheshwari, TAPMIBook Review: The Google Story 33By Madhukar Holla, TAPMIExperiences at the HCL Conference 35by Harsha Vatnani , TAPMISlideshare 37by Sahil Anand , TAPMIPratibimb | October 2012 | 6
  7. 7. Indian Logistics The Way Forward – Challenges & Opportunities by Md Umair Ansari and Rahul Jain, IIFT Logistics Sector in India: The logistics sector in India has today become a key performance indicator of the economy. One of the primary reasons for it is that years of high growth in the Indian economy has resulted in a significant rise in the volume of freight traffic moved. This large volume of traffic has opened up new growth opportunities in all facets of logistics including transportation, warehousing, freight forwarding, express cargo delivery, container services, shipping services etc. According to the World Bank‖s Logistic Performance Index (LPI), India is ranked 39th place among 150 countries of the world. Growth in Freight Volumes in India Size of Logistics Industry in India: Various estimates put the total market size“Logistics cost is 13% of of the logistics sector in India toIndia’s GDP in comparison be between USD 90-125 billion.to 11% in Europe and 9% Sources also estimate that the logistics sector employs over 4 5 million people in India.in the U.S. “ Country Wise Comparative Analysis of Logistics Sector Source: Thomas Weisel International Estimates; Agile Advisory; IIM.ac.inPratibimb | October 2012 | 7
  8. 8. Why Logistics sector is important to India‖s why the Indian logistics sector prefers road over railEconomic growth: Logistics cost is 13% of India‖s GDP for transportation of goodsin comparison to 11% in Europe and 9% in the U.S.  Important rail networks are oversaturated.There is no doubt that in India, an increasing demand There has been no significant capacity additionis being placed on the logistics sector to provide to Indian Rail since Independence (Refer thesolutions which are required to support future graph below)growth.  Rail freight tariffs are comparatively higherIndian Logistics Industry Structure: The logistics  Transit times are long and uncertain  Rail terminal quality is poorsector in India operates in the following four broad  Less flexibility in carrying different types ofsegments, they are depicted in the chart below: Products  Railway carriage not easy for industries whichFuture Outlook of Logistics sector in India: The cannot provide full train loadsindustry is expected to grow annually at the rate of 15- 20 per cent, reaching revenues of approximately $385bn by 2015. Market share of organised logisticsplayers is also expected to double to 12 per cent by2015. Third party logistics (3PL) business in India isanticipated to hit US$ 90mn by 2012. Comparative analysis of the Freight rate increase of Indian Rail over the years. Issues plaguing the Road Transportation in India: The road movement in India has its own shares ofSource: Thomas Weisel International Estimates; Agile problems. Those problems are summarized below:Advisory  Coverage of road network is inadequate  Quality of the roads is inadequateKey Challenges of the Indian Logistics Industry  Expressway road network is in its infancy stageTransportation related challenges: The  Delays due to multiple checkpointpredominant mode of transportation of freight cargoin India is roads. In India nearly 61% of the cargo istransported by road, 30% by rail and rest by airways, Challenges faced by Air Transport: Given below areinland waterways and pipelines. This as compared to the strategic challenges of the Logistics Industrya 37% share of road in USA and 22% in China. This is a vis-a-vis air transportwell known fact that movement of bulk cargo by road  Rising Air Turbine Fuel (ATF) pricesis always less efficient as compared to rail.  Ever growing congestion at Airports  Delay in cargo handling and clearances Issues faced by Port Sector in India: Following are some of the key problems being faced by the port sector in India  High turnaround times  Inadequate depth at ports  Costal shipping is yet to take off in India Challenges relating to the Storage Infrastructure:Comparative share of Highway & Railway as mode of  Poor state of Inland Container Depot (ICD) &transport in Indian Logistics sector Container Freight Stations (CFS)  Poor Warehousing FacilitiesWhy the Logistics Industry Prefers Transportation  State of cold storages is poorThrough Road Over Rail : Following are the reasons  Multimodal Logistics parks is yet to take off inPratibimb | October 2012 | 8
  9. 9. India Indicator India China Brazil South AfricaTechnology & Skill Related Challenges: The Documents to Ex- 8 7 8 8 port (Number)logistics sector in India has suffered a lot due to the Time to Export 17 21 13 30low rates of technology adoption and poor skill (Days) Cost to Export 1055 500 17907 1531levels. ( US $ per contain- er) Documents to Im- 9 5 7 9There is a substantial opportunity to save on port (Number)transportation and In Transit Losses with the Time to Import 20 24 17 35adoption of technology (Days) Cost to Import 1025 545 1730 1807 Constituents of India ( US $ per contain- er) Total Logistics Comparative Analysis of the KPI‖s of the Cost Logistics Industry of Emerging Economies Source: Logistics Performance Index Transportation 35% Report 2010 Warehouse & 9% Handling Inventory 25% Packaging 11% Customers & 6% Shopping Transit Losses 14% Technology cost < 1%Source: Logistics Performance Index Report 2010Indian logistics Industry – The Way Forward:In the years to come, the Indian economy will bedriven by sectors like manufacturing and retail. So for Referencesthese sectors to contribute effectively to the economy,  Logistical Bottlenecks in India: Governmentthe logistics industry in India will have to improve Interventions &Policy Initiatives – Dr Ram Singh –upon its lacunae and deliver value enabling solutions. Assistant Professor, IIFT Delhi  Logistics Industry: Global and Indian Perspectives –To achieve this, the logistics industry needs to focus Subrata Mitra – Assistant professor – IIM Calcuttaon the following fronts: Expand distribution channels and increase consumer reach Reduce operational cost & improve delivery time Overcome infrastructure bottlenecks & implement E-Infrastructure Efficient port utilisation and decreasing the turnaround time Increase investments in storage infrastructure i.e. warehouses & cold storages Organise the trucking operations on a pan India basis Adopt the latest technology Address skill gaps issuesPratibimb | October 2012 | 9
  10. 10. LIBOR’s Labour’s Lost by Anuj Narula and Prakash Nishtala, NMIMS Mumbai In 1598, William Shakespeare scripted the rib-tickling comedy “Love‖s Labour‖s Lost”. The world has seen an unprecedented paradigm shift by then. But, now, the history seems to repeat itself. This time around, Barclays comes up with an ad nauseam thriller, “LIBOR‖s Labour‖s Lost”. Prelude During the late 1984 and early 1985, the financial world felt an inalienable need to provide a standardized rate to facilitate the ever increasing usage of new financial instruments such as interest rate swaps, foreign currency options, and forward rate agreements, that‖s when LIBOR, or the London Interbank Offered Rate, was born. Countries that rely on the LIBOR for a reference rate include the likes of United States, Canada, Switzerland and the U.K. LIBOR is the average interest rate estimated by leading banks in London. The Banks charge this rate for lending credit to other banks in the London Interbank Market. For instance, a multi-national corporation (MNC) with a very good credit rating may be able to borrow money for one year at LIBOR plus four to five points. LIBOR is calculated and published by Thomson Reuters on behalf of the British Banker‖s Association (BBA) after 11:00 AM (usually around 11:45 AM) each day (London time) on a daily basis wherein they survey interbank interest rate quotes by 16 large banks. The submitted rates are, then, ranked and the mean is calculated using only the two middle quartiles of the ranking. So, if 16 rates are submitted, the middle 8 rates are used to calculate the mean. The calculated mean becomes the London Inter-bank Offered Rate for that particular currency, maturity, and fixing date. The rate at which each bank submits must be formed from that bank‖s perception of its cost of funds in the interbank market. It is published for various currencies and for maturities ranging from overnight to one“Right from LIBOR’s in- year.ception, it has enjoyed BBA follows a typical, believed by many as immaculate, method for calculatingfame and acceptance in the sacrosanct LIBOR for the day. LIBOR plays a much crucial role by not only providing information about the cost of borrowing in different currencies but ita world where change is also actually influences it. LIBOR, the lingua franca of the banks helps them inthe only constant.” figuring out what they should charge for not just home loans, but car loans, commercial loans, credit cards. Plot (LIBOR, Lie More?) So far the LIBOR‖s journey was a dream run. Right from its inception, it has enjoyed fame and acceptance in a world where change is the only constant. But, all was not rosy as it appeared. As every flick has its protagonist, this story had the Wall Street Journal (WSJ) as its saviour. In 2008, WSJ released a controversial study suggesting that some banks might have understated borrowing costs theyPratibimb | October 2012 | 10
  11. 11. reported for LIBOR during the 2008 credit crunch that the need for a reference rate in the debt market wasmay have misled others about the financial position of felt. The National Stock Exchange (NSE) on 15 Junethese banks. 1998, developed the Mumbai Inter-Bank Offered Rate, referred to as MIBOR, on the lines of LIBOR.To obliterate gloomy economic scenario, banksshowed lower than actual interest rates. The lower These rates are calculated by a combination of twointerest rates therefore resulted in lower LIBOR and methods—polling and bootstrapping. In the pollingthus heaved up the confidence and increased lending. method, like in the case of LIBOR, the data is collectedAs LIBOR is the average of the interest quotes by from the panel of 30 banks which has a mix of publicdifferent banks, so rigging of LIBOR would have sector banks, private sector banks, foreign banks andinvolved many banks. primary dealers.Why was the rate rigged in the first place? A close How safe is MIBOR?examination into the issue transpired that Barclays As MIBOR shares a similar DNA as that of its elderwas itself facing rising interest rates; had it provided brother LIBOR, it might also have a little room to getthe same rates to BBA, it would have created an manipulated.unhealthy picture on the bank‖s financial stability andliquidity issues it was facing would have surfaced. So, But, MIBOR has its own merits over LIBOR whichin order to protect its own interest Barclays resented makes it a bit safer. Firstly, instead of omitting 2on reporting (read rigging) lower rates so as to highest and 2 lowest rates as is done in case of LIBOR,present a merrier outlook to the outer world. The NSE uses a statistical technique called bootstrappingrigging happened between 2005 and 2009, as often as to separate the outliers and determine the mean rate.daily. It is expected to help against any attempt by the market participants to come together and influenceCreating a bang in the already turbulent banking rates. Secondly, though in a less extent, the very factworld- thanks to Euro crisis, the WSJ report on rigging of Indian banking system being largely dominated bywas welcomed with raised eyebrows and harsh public sector banks makes one to believe that MIBORcriticisms. A fast-paced turns of events ranging from could not be affected by private players to satiatestaunch investigations into the conversations of their own interests.Barclays‖ CEO Bob Diamond and the Deputy Governorof Bank of England to the Barclays‖ public admittance Learning from LIBOR scandalof the rigging, the world witnessed abdication of threestalwarts of Barclays from the throne. Barclays Bank Prior to the exposure of scandal, proponents of LIBORwas fined a total of £290 million (US$450 million) for were too confident about its piousness. Promoters ofattempting to manipulate the daily settings of LIBOR. MIBOR such as Reserve Bank of India (RBI) should act proactively to tighten the possible loose links and toWhat‖s the big deal? cover the undiscovered loopholes.Upshots on proletarian: If LIBOR is very high that The case in point is the possible switching over ofmeans one needs to dish out more to avail the credit. MIBOR calculation to actual dealt rates on a tradingIf it‖s maneuvered towards a lower rate, it implies that platform. As India has online, screen-based trading ofyour interest earnings on savings account would be money market instruments such as call money, unlikesubdued. Hence, in either ways, a manipulation would voice-based markets in many countries, it makeslead to common man‖s loss. sense to move to a transparent, actual screen based traded rate system which could capture actual MIBORAs it is used as a benchmark for deciding various rates levels.across numerous banks including central banks oreven EURIBOR, so at a macroeconomic scale, it has Epiloguethe potential to create many ripples in financial assetsworth $500 trillion. As the Shakespeare‖s classic had not only the King of Navarre involved in the promiscuity, he had anMumbai Inter-Bank Offered Rate (MIBOR) - The unflinching support from his three noble companionsYounger Brother as well, on a similar line, even in this story Barclays is not forlorn, they reportedly, have support from manyIn India, as the financial markets started developing,Pratibimb | October 2012 | 11
  12. 12. other players (refer to Exhibit 1) of the game. Theimmediate action in the current context should be toidentify the hidden miscreants and subject them toserious punishments.What we require today from regulators is not merelywhipping fines on the perpetrators rather a systemshould Exhibit 1evolve wherein there is no scope for manipulation atall.The world is now hopeful that one day, preferablysooner than later, the system should get clear of allthe malpractices and the market participants canagain reinforce their faith in LIBOR.The time must come sooner when we could say,“LIBOR‖s LABOUR‖s WON!”References The Economic Times, Monday, July 23, 2012, MumbaiEdition Exhibit 1: http://chasvoice.blogspot.com/2012/08/the-libor-cartel.htmlPratibimb | October 2012 | 12
  13. 13. Marketing Lessons from Olympics London 2012 by Sankalp Singh Parihar & Kriti Dua, Great Lakes Institute of Management Citius, Altius, Fortius. Think of Olympics and suddenly there is a gleam of happiness over your face, an amiable visage one which radiates and exudes only joy. It is an event that unites us, binds us, combines us to synergize and support our athletes; it is the ultimate test of human sporting capability and mettle. For fifteen days billions of people across hundreds of nations wait and watch with bated breaths as their favorite stars sweat it out with the best of the best. Each jump is an anticipated medal, each lunge another jewel in the crown, each maneuver another name in the annals of history. It is those fifteen days when the human mind is riveted to the television and newspaper scurrying from one medium to another to find out the latest medal tally or the progress of their favorite stars. Each outcry resonates the same emotion: What‖s the progress? Did we win? Have we qualified? What‖s the tally? It is this event when the world comes to a standstill to listen to this extravaganza when you have the best opportunity to market yourself. A brand would not gather more eyeballs at any other event or time than this. It is this small window, this small crevice when you can do wonders with your product and market yourself to new pedestals of success. Olympics 2012 cost London approximately $14.6 billion dollars. Notwithstanding the high cost, 11 MNCs paid $1 billion dollars as sponsor fees. These MNCs are Coca Cola, ATOS, Acer, GE, Panasonic, Samsung, Dow Chemicals, McDonald‖s Corp., Omega, P&G and VISA. Now if a company pays top dollar for such event it is safe to assume that it is betting its bottom dollar that the event would be a success. And success it was. London 2012 Olympics was hailed by many as the best Olympics “London 2012 so far. Over 10,000 athletes from 204 countries took part and captured the world‖s Olympics was attention. USA grabbed the highest number of golds, followed by China and Great Britain. London 2012 was called the first true Social Media Olympics, keeping in mind hailed by many as that Twitter, Facebook and other social media were in full flow and usage, both by advertisers as well as the common public which sent more than 150 million tweets in the best Olympics the span of 15 days. Chat rooms, Facebook walls, tweets, messages etc. were abuzz so far. “ with Olympics. People were either discussing sports strategies, medal tallies, next competitions, prospects or quite surprisingly, advertisement and about brands. So what exactly were the advertisers doing during this marathon 15 day event? Official sponsors, advertisers, etc. all were busy creating a buzz around Olympics. Some were extremely successful, others not so much. So what were the chief marketing lessons from London Olympics 2012? Lesson #1: It is no longer just an advertisement Gone are the days when a simple and traditional advertisement before and during thePratibimb | October 2012 | 13
  14. 14. Olympics‖ broadcast was enough. Or printing a simple Lesson #3: Strike an emotional chord with thepamphlet or securing a half page advertisement is a publicpopular magazine was sufficient. Today it‖s it is no Yes, it‖s an ecstatic sport. Yes, Olympics makes nationslonger just an advertisement. Give the consumers or proud and athletes celebrities, but nothing creates athe people more than that. Create a mobile app, connection more than emotion. That unrestrainedcompose a catchy jingle, start an optimistic bundle of joy that touches the sweet spot of yourdiscussion, churn support for your athletes. General heart; one which creates a whiff of joy and evokes thatElectric did just that. It created a Facebook application wonderful tear of happiness, yes make yourthat let users to work out like an Olympian. And not consumers emotional. Proctor and Gamble did exactlyonly that, it handpicked four sport stars that had the that and reaped rich benefits! Its emotional campaignlargest online fan following to create a campaign. ―Thank you mom‖ on social networking sites featuredPanasonic which has a relative low presence in online an emotional video showing different scenes: It startssocial media also created an online app that allowed with a line stating “They weren‖t born an Olympians.”people to superimpose their national flag on their Then come the emotional scenes: a young kid held bypictures and some of the best pictures were then his mother as he stumbles to his first paddles in adisplayed on huge screens in the Olympic parks. cycle, a concerned mom bandaging her hurt child, aEngagement is now necessary. Just an advertisement joyous mother playfully wrestling his son, a momis passé. bathing her child in the bath tub. Next frame: OlympicLesson #2: Social Media is here to stay. Ignore it participants taking part in corresponding events; aand perish. cyclist running at full steam, another participant bandaging himself before the start of the event, aSocial media is a giant today. If one wants to create a wrestler grappling his opponent, a swimmer racingtrue buzz, a wild discussion or a enhance one‖s PR past his competitors. And then the emotional punchsocial media is the first step. Ushered as the first line stating that as P&G Celebrates this year‖s OlympicSocial Media Olympics, brands were smart enough to Athletes, they would like to remember the forcerealize the true value of social media. And rightly so, behind these athletes: Their Moms. This is followed bymillions of fans follow their favourite stars and scenes of emotional athletes hugging their cryingathletes on Facebook, twitter, etc. and anything said, mothers. Truly an emotive scene which indeed struckportrayed or conveyed by these stars has an instant a chord with the common public and brought P&Greach to millions. Truly an attractive medium for enormous PR positives. This was evident by the factdifferent brands that leveraged it to its full potential that P&G was the most discussed brand in twitter andas evident by the following examples: over 90% of the mentions of P&G were around its1. Jamaican sprinter Usain bolt famous for his marketing theme. World record sprints mingled a photograph of Lesson #4: Offset your challenges his with a refrigerator filled with the energy drink Gatorade. Thanks to social media he While branding and PR is an important as it can get advertised it instantly to his 620,000 fans. one should be mindful that negative PR spreads like2. Or take the case of Michael Phelps, arguably the wild fire. And before one is able to douse the blaze, greatest ever Olympian who is ardently the damage has been done. Take the case of followed by 5.4 million Facebook fans. Phelps, McDonald‖s which had negative press hounding it amidst his training and exercising updates since the beginning of the games as it was the sole sprinkles a mention of famous brands like Head (exclusive) supplier of French Fries in the Olympic and Shoulder Shampoo, Hilton hotels or VISA Venue. Plus the fact that most people resented a fast creating an instant ring in the minds of his food company sponsoring an event touted to be the followers. cauldron of the fittest athletes, McDonald‖s had plenty much to do to tackle the negative press. While a lot ofNothing helps a brand create a positivity around itself people were talking about McDonald‖s it was mostlymore than social media and with the number of users negative. McDonald‖s further failed to tackle this issuegrowing alarmingly in these social media sites, in twitter as it only had a corporate twitter handle andignoring them would not only be stupid but even not a dedicated Olympics twitter feed. Result:suicidal. McDonald‖s had just 300,000 views in Youtube in aPratibimb | October 2012 | 14
  15. 15. month compared to 1million views for Adidas. sponsors did just that. Adidas‖ Team GB created a video with a multitude of Olympians lip syncing toWhile on one hand, McDonald‖s failed to redeem itself Freddie Mercury‖s famous song “Don‖t Stop me Now”.in the social sites, Coca Cola (also termed unhealthy The video was so popular that it was an online rage, afor the athletes and accused of being insalubrious to wildfire and within two days everyone was talkingbe sponsoring a sporting event) conjured a rabbit about it from Knighted personalities of London tofrom the hat. Coke was enormously popular in the musicians and others. There were 1 million viewssocial media which contributed to over 85% of the within 48 hours and everyone had just one thing tobrands mention during Olympics. Part of Coke‖s say apart from the closing ceremony: ―Have you seensuccess was due to the musical events it had the Adidas video?‖organized during the torch relay. One has to keep inmind that there was no way Coke could have Olympics are the pinnacle of sports and the perfectmarketed itself differently as healthy or done anything opportunity to create awareness about one‖s brandto change public perception in such a short time. and product. Not leveraging such an important eventInstead it chose to offset its shortcoming by would simply be fool hardy. The next stop: Rio desponsoring events where there was a large audience. Janeiro 2016. Till then, au revoir.Torch relays were not only witnessed by millions on Referencesroads by millions more on media. Sponsoring thetorch relays created a positive mindset in the minds of  http://www.ft.com/intl/cms/s/0/b0959724-e6fc-11e1-the consumers. af33-00144feab49a.html#axzz24kLFinZR  http://www.ft.com/cms/s/0/c7b1f694-f5b9-11e0-bcc2Lesson #5: Don‖t just be imaginative. -00144feab49a.html#axzz24kLFinZRThink outside the box is one of the most oft repeated  http://www.ft.com/intl/cms/s/0/e7e9b3fa-d661-11e1-clichés and it is true for a reason. Regular ba60-00144feabdc0.html#axzz24kLFinZRadvertisements though wonderful slip past a  http://www.terminalu.com/europe/taxi-british-consumers mind way too easily. Create an imaginative airways-launches-dont-fly-olympics-ad- campaign/27405/and compelling ad and people will remember, discuss,  http://ca.finance.yahoo.com/blogs/insight/london-talk about it, disseminate on social networking sites 2012-olympic-games-marketing-lessons-extend-and they spread awareness about the brand. Take the beyond-155229166.htmlcase of British Airways and its ―Don‖t Fly‖ Campaign.  http://www.campaignindia.in/Article/311814,top-10-The campaign is a minute long video disseminated by marketing-lessons-from-the-olympic-games.aspxtelevision, social media and print which shows people  http://www.warrenstrategies.com/blog/bid/206511/4packing their bags in the aero plane. The Boeing 777 -Marketing-Lessons-Learned-from-the-Olympicsthen taxies the passengers on board across the streets  Image Courtesy: Wikipedia http://en.wikipedia.org/of London through different areas as the excited wiki/File:2012_Summer_Olympics_logo.svgpassengers paint cardboards, miniature flags tosupport the home team. The ad ends with the planecoming to a halt at an Olympics stadium and a captionwhich says ―Don‖t fly. Come and support the TeamGreat Britain #homeadvantage‖. This churning up ofnational sentiment combined with the imaginativeand counterintuitive theme helped British Airwaysgenerate a lot of positive PR.Lesson #6: Finish with a bang.The term ―Icing on the cake‖ or ―Cherry on the cake‖sums it all. It‖s fabulous to have a great PR during theOlympics but at the fag end or an event wheneveryone is ready to wrap up and leave or whenothers are busy packing their bags be ready to deliverthe knockout punch. Adidas the official OlympicsPratibimb | October 2012 | 15
  16. 16. Mass vs. Class: Branding for BOP Revisited by Unnikrishnan Nair and Utkarsh Sachdeva, TAPMI Dynamism in the New markets and the potential of the market – close to 4 Billion of the population, has been the main draw for many companies to cater to the newest of the multitude segment – defined as the BOP or the bottom of the pyramid by the legendary paper by C.K Prahlad.“A look at the recenttrends in the marketand it is no surprisethat leading brandshave realized that 1: The Economic Pyramidignoring this segment The major draw for this market has been the lack of geographical boundaries tocan be at their own cater to, with the population base spread across continents. Couple this with theperil “ following factors and this brings forth a marketer‖s dream domain – innovative and beyond straight forward understanding, requiring more than traditional text book strategies.Pratibimb | October 2012 | 16
  17. 17. Economic Con- Low Gross domestic Beliefs Ground Reality straints product, low income, high inflation, import They have less pur- The margin factor is price shocks, reduced chasing power and not exactly right private capital in- hence the market is flows volume driven and Political Constraints Political instability, not margin based poor governance, corruption & weak They are not brand They are highly brand legal systems conscious and value conscious Infrastructure chal- Lack of reliable elec- lenges tricity, poor distribu- They are hard to They are willing to tion channels, unreli- reach pay premium for able transport goods & services Product Constraints Price Controls, Availability, Differ- They are unable to They have sophisti- ent set of needs use and are not inter- cated technology in- ested in advanced clination technology2: List of ConstraintsThe lure of this market has thrashed the conventionalideology of given cost structures, product focus ratherthan functionality focus and the mentality of havinginnovations catering to the high end of the market.Therefore, in a market ridden with innumerouschallenges, it has become a play ground for someground breaking products and practises and businessmodels that has redefined marketing as we know ittoday.The basic characteristics of the BOP segment have 4:Traditional 3A model of BoP Buyingbeen largely described as follows: The 3A model above has been the basis of product purchase behaviour at the BOP level. However, brand3: Belief V/S Reality recall and awareness seems an oft neglect paradigm here largely due to the non-availability of appropriateThe Indian market is a prime example that has mediums to cater to these segments. However, basedshowcased how BOP segment has been largely mis- on the 11P marketing mix, and the PIRT (personality,understood, especially on the brand front. HUL, Coke, image, reputation & trust) model and suggestions of aGlaxoSmithKline (GSK) and desi-brands like Micromax, close relationship between brand attributes andBrittania have all realized and evolved to cater to this corporate brand image has been suggestive ofhuge segment. considerable impact on brand loyalty in the BoP segment.The basis for the branding exercise has been anexercise born out of necessity and out of therealization that the market is not exactly asunderstood in literature.Pratibimb | October 2012 | 17
  18. 18. 5: The BoP Brand Strategy brand. Quality Confidence: Quality platform has been anUsing this model, the companies have been trying to essential factor and its essential for continuing tobuild the brand leadership in this segment based on command premium market share – a case in point isseveral counts:- the Hero Motor Corp which has never tinkered with its quality offerings, helping to cater to segments withConsumer Knowledge: This is captured through quality offerings and thus maintaining its numero unoperiodic research, helping to factor in mind shifts and position in the country.tweaking the marketing strategies to cater to thepeople at the right points – an example was the Multi-brand & Aggressive Branding Strategy: Firsttriangular hanging packs of Frooti in the stores at mover advantage and a complete capture of theaffordable rates. senses is an essential factor to cater and keep brand recall and this has been essentially the case as proved by HUL‖s multiple offerings that seem to be catering toLong term vision: Brand extensions has been a major virtually the same market.factor – helping to gather enough traction and thendiversifying to cater to multiple needs through the 6: Brand Evolution in BoPsame brand- an example is the Tiger brand of biscuitsthat took the market from Parle-G and successfully The significant shift has been in the context of movingwent on to introduce affordable choco-chip biscuits away from low margin-high volume products to actualand cream biscuits at price points not envisaged by new products that command premium.others. 7: The Volume GameProduct Innovation: Quality was never an importantconsideration till the markets actually went on to Disruptive innovation has become the new name ofshow their preference for it rather than price – this the game and it is not surprising at all if we have awas perfectly exploited or put to use by HUL through good look at how disruptive innovation and BoPtheir Surf Excel Blue catering to quality detergents market actually functions. Hence branding hassegment in BoP against their own Wheel brand, while become more than just a name – it‖s a game playSurf Excel Automatic was positioned as a premium which involves survival through evolution and genesis.Pratibimb | October 2012 | 18
  19. 19. innovation that cater to the duality of functions as well costs and fit in with needs across the segments incorporated with marketing initiatives that can never be found in text books.8: Disruptive Innovation & BoPA look at the recent trends in the market and it is nosurprise that leading brands have realized thatignoring this segment can be at their own peril – apoint brought into strict focus thanks to the relentlessoccurrence of recession impacting the markets thathave always been the primary focus for marketers.The need has now shifted to value for money, and 9: The BoP innovation trendsPratibimb | October 2012 | 19
  20. 20. If Tata Nano is a product that redefined car making  Branding at the base of pyramid: A Zimbabweanand business models, it is but a gentle reminder that perspective by Tendai Chikweche and Richardthe new world order will be dictated not by the high Fletcherpointers but by the bottoms that support the  Disruptive Innovations at the Bottom of the Pyramidstructure in the first place. Can they impact on the sustainability of today‖s companies? by BAIYERE Abayomi & ROOS Jaspar  Reality Check at the Bottom of the Pyramid by Erik Simanis  Raising the Bottom of the Pyramid: Strategies for Sustainable Growth by C. K. Prahalad & Stuart L. Hart  Shampoo, saris and SIM cards: Seeking entrepreneurial futures at the bottom of the pyramid by Catherine Dolan, Mary Johnstone-Louis & Linda Scott  Branding paradigm for the bottom of the pyramid markets by Rajagopal  http://www.brandchannel.com/home/ post/2010/01/12/Coca-Cola-GSK-Invest-In-Indias- Bottom-Of-Pyramid-Consumers.aspxReferencesPratibimb | October 2012 | 20
  21. 21. Personalization: 8th P of Service Industry by Arpit Bansal, SIMS, Pune Abstract—This article is about the enhancement of personalization in the service industry at an alarming rate. It also signifies why personalization should be 8th P of service Industry. It describes how Personalization actually satisfy the snob value of customer and create imprint in the mind of the consumer. Finally the game of personalization is understand by major players in Europe and middle east but there are some patches where this fact is still under cover. This article is based on my research and training in Le Meridien New Delhi. Every hypothesis has the relevant and proved data . INTRODUCTION The service industry is the industry which is growing worldwide. Day by day this industry mitigates the mistakes and luring the customer with innovation. Gap analysis is done to reduce the gap between what customer expect and what the industry is offering to them. Personal care or personal attention is demanded and very less offered or identified. Growing conventional wisdom in marketing argues that customer loyalty is responsible for large fractions of the profits of many service businesses. Constructs such as satisfaction, trust, customer collaboration, customer interaction, firm image, personalization, learning relationships, and so forth, have all been proposed as intermediate objectives, or as tools to build loyalty. Yet, to date, only some of these constructs have been measured and shown to be related to loyalty. This paper fills a portion of the empirical gap by showing that service personalization, indeed, affects loyalty, above and beyond the other explanatory variables. WHAT IS PERSONALIZATION ? Sometimes Personalization is also defined as the adaption of new policies or changes which can be customize according to guest but Personalization is nothing but adjusting or designing the things in order that the specific person who is landing to your hotel will personally like it. In service Industry people are eagle-eye (from cleanliness of remote of TV to groomed staff ) they actually notice each and every“The service industry thing. So peculiarity in every task is expected. Even a centimeter of smile is also mentioned in manual of some 5 star Hotels when some employee escorting oris the industry which welcome the guest hotels .is growing world-wide.”Pratibimb | October 2012 | 21
  22. 22. ELEMENTS OF PERSONALIZATION avail to VVIP guest. Requirements , designs and facilities are change according to situation and people.There are three elements of personalization which are That‖s what called as flavor of Personalization.defined as : EMPHASIS ON KEY FEATURES It is being found out that there are categories where service industry wants to review or concentrate on guests. Now these are few categories where the whole set of 5 star hotels wants to differentiate themselves. These are some parameters on which employees wants to judge the guest experience. So all the level 1 employees work on these Improvement in these areas would help the Hotel toelements so that they can get more business, retain its brand name as well as the customers.Personalization is directly related to user. Suppose if Across the world hospitality is the only industry wheresome Gujarati family is coming to the Hotel then all guest repeat behavior is very low. The factor like trustthe arrangements are done according to them. More and comfort can be easily copied but not the Personalvariety of food should be available as Gujarati are care. So marketing executive should always keep thisfond of food. Gujarati channel should be made in mind.available to their room. This type of customization is These are the few parameters which are accessed inactually implemented in “CIDADE DE GOA”. This is the detail by the five star hotels to analyze more business.hotel who changed its target audience because there I have done a research and training in le Meriden Newwas oil leakage from the nearer port and people are Delhi and this data is collected , analyzed by me andgetting rashes and skin disease if they are going in the recommended by my teachers from the Institution.sea water. So this hotel is very apt example of These parameters are further divided into smallPersonalization. subparts that garner the view point of the guest. For example arrival is bifurcated into:Content refers to the interest of the people in service 1. Entry experience and lobby environmentindustry. Expected features in the hotel are aboutcleanliness of room, basic facilities and the privacy. 2. Doormen/Bellman service and check inBut Hotel like Le Meriden is also caters about the experienceguest health and entertainment. They have spa, gym,yoga , swimming pool, Jacuzzi jewelry shop , pastry 3. Directional signage with secure environmentshop , coffee lounge , all day dining restaurant , I have individual result for each question as well asspecialty restaurant , Bar and discotheque . So these coagulated graphical data alsokind of eminent facilities are basically to lure the guestand this actually builds the differential advantageamong different 5 star properties.Rules are actually designed not only for guest but alsofor the employees working in the organization. Tosatisfy the snob value some of the features are onlyPratibimb | October 2012 | 22
  23. 23. Overall welcome Bulletin, 134(1), 61-76.  Journal Article, two authors Sanchez, D. & King-Toler, E. (2007). Addressing Marketing for Hospitality and Tourism . Consulting Hospitality Journal: Practice and Research, 59(4), 286-295.  Journal Article, more than two authors Van Vugt, M., Hogan, R., & Kaiser, R. B. (2008). Personalization and marketing in hospitality .Some lessons from the past. American Author, 63(3), 182–196.  Magazine articleThis is the data collected from the Le Meridien, New Kluger, J. (2008, January 28).Events at hospitality industry. Time, 171(4), 54-60.Delhi which has all the authentication proofs as wellas recommendation. Sample size is kept to 100 for the  Newspaper article, no authorcalculation purpose. This data shows that how muchpeculiarity is expected in the decorum of Five Star As prices surge. European service industry. (2008, May 5). The Wall Street Journal, p. A9.property and how minutely each of these parametersare judged by the guest.  Newspaper article, multiple authors, discontinuous pagesCONCLUSION Delaney, K. J., Karnitschnig, M., & Guth, R. A. (2008, May 5). After this research we can say that hospitality Microsoft ends pursuit of Yahoo, reassesses its onlinebusiness are booming in the country due to rich options. The Wall Street Journal, pp. A1, A12.heritage value of India . Probably this is betteropportunity to get our bags full of the Forex reserves.  Butterworth-heinemanThis is the business which have a great impact of word Hospitality principles : Butworth –hineman (11th ed.).of mouth (WoM) . So to enhance the imprints in the (2003). Springfield, MA: Merriam-Webster.mind of consumer Personalization is the best weapon Robert D. Reid, David C. Bojanicto cope with.Referral from the consumer also helps to convert Kidder, T. (1981). Hospitality Marketing Managementleads to potential account. All the traits and elements Boston: Little, Brown & Company.are shown in the article with facts and figures. Thisshows how Personalization is going to become thedeciding factor for the consumers while choosing theHotels and how it will affect the Hospitality business.References Journal Article, one authorSweeny, K. (2008). Hospitality Marketing: anintroduction takes a unique approach to outliningmarketing processes in the hospitality industry.. HospitalityPratibimb | October 2012 | 23
  24. 24. INTERVIEW Mr. Sanat Satyan Research Associate, Equity Research - Oil & Gas sector, Nomura What are the current major trends in the global investment banking Industry? For 2-3 decades before the 2008 crisis, investment banks had not changed the way they had been doing business. They were doing exactly the same things that they were doing three decades earlier in almost the same fashion. Post crisis, the industry has seen some collaboration between regulators, governments and financial institutions. Banks have realized that one needs a better cost structure, efficient trading platform and timely client interface, more than anything else (even, leverage). I believe, from 2012TAPMI had an opportunity to interact with Mr. onwards, you are going to see a structural shift in howSanat Satyan, Research Associate, Equity Research - banks are going to service their clients and makeOil & Gas sector, Nomura. In an exclusive interviewwith Jayakrishnan Reghunathan for Pratibimb, Mr. money. Client interface is changing internationally asSanat Satyan shares valuable insights on the current banks are shifting to online trading platforms, whichtrends and challenges faced in global investment is more cost effective and efficient. As a result, onebanking industry. Mr Satyan is a TAPMI alumnus from will see more high frequency trading platforms2008 batch. Excerpts: [The views expressed are his coming up. As the industry recovers, these changespersonal and not views of Nomura or any otherorganization he has worked for] will more likely stay.Equity analyst job @ an Investment bank is very What is your opinion about the industry trend ofhectic by nature and very demanding in terms of buy side firms reducing the dependency on selllong working hours etc. What are the average side analysts by employing more sophisticated in-working hours in an Investment bank? house buy side analysts as part of cost reduction? What do you think about this from a buy side andIn the Indian investment banking industry for sell side point of view?international banks, 12-14 hours is minimum. It is a 5day work week but sometimes, if you are working on A sell side analyst is always a specialist on a particularurgent reports and deals, you may have to work on sector and that is the value he adds to the buy sidethe weekend as well. However, this is lesser compared client. Internationally, roles that buy side firms offerto the domestic IB companies where you will have to as an analyst are mainly that of a generalist acrosswork on Saturdays as well primarily because some multiple sectors and sometimes, even multiple assetIndian companies report their financials on classes. Although buy side firms may intend toweekends. develop in-house expertise for portfolio management roles, we constantly hear from clients about the need for more macro research and industry trend analysis from sell side. This is where the next ―big‖ idea comes from! Now that all the major Investment banks arePratibimb | October 2012 | 24
  25. 25. looking for more opportunities in emerging communicate, it is of no use! Technical skills likemarkets, can you please comment on the kind of valuation methodologies and excel based modelingjob opportunities created as a result of this? are also important. In recent years, the importance of additional qualifications like CFA and CA has alsoThe kind of opportunities coming to emerging market increased. Finally, a proactive nature along with beingwill likely be more towards assessing local knowledge a team player is also considered. This industry isand expertise. Salary cost inflation may make offshore about idea generation on a daily basis so a little bit ofunits less attractive for some time but as banks move financial creativity is always welcome.towards growth regions, it will be crucial to hirepeople who can provide effective corporate access.This can only come through local presence and Due to increased regulatory requirements such asnetworks, forcing one to focus on local equities. the Basel III norms on liquidity, leverage etc. which will limit the scope for more risk taking,One important objective for all the major how do you think this can affect the investmentinvestment banks today is cost reduction. What do banking business?you think about this? Talking about the regulatory requirements let me giveWe often forget that the global IB industry works on you an example. The FSA in UK aims make sure thatthis model. In a bull market, it will hire and in a down an investment bank does not mis-sell products, doescycle, it will lay off in the absence of deals. The last 3-4 not make securitized products so complicated that ayears have been very tough on banks amidst tighter client cannot understand it and that there areregulations and public criticism. Banks had grown to effective penalties for both. Globally this has becomesuch a size that the only way to remain profitable was a trend now as regulators have become moreto shrink. This will change again once the market coordinated. This has indeed made certain functionsrecovers. Also, one must remember that this is very in bank more difficult (e.g. proprietary trading). Insector-specific – banks are shrinking their headcount hind sight, industry experts now say that this is goodin sectors where they do expect any growth for the industry. Besides lowering risk appetite andopportunities. complex products, banks will also learn to focus onHow do global investment banks deal with quality. Shrinking sizes will help the industry has acompetition from the domestic players in the whole to become more efficient and hopefully, lessemerging markets? competitive.What I hear from my colleagues, the competition is Regarding the recent developments in theindeed very tough simply due to the large number of industry about few major banks making hugeplayers. A company like Reliance Industries is covered losses on derivative deals, do you think there is aby more than fifty brokers and if you are entering a scope for improvement in risk managementmarket where there are already 50 players, it is going systems which are currently in place?to be tough to make money, unless you provide I agree that risk management systems at banks haddifferentiated research and calls. This is true for all failed but it was not because they were wrong. Suchfirms in the market and not just international events occur when certain people learn to manipulateinvestment banks. One key differentiator for the system and even banks are not ready for it. Today,international investment banks in such a situation is the FSA has even admitted that ―LIBOR‖ is broken but itthe access it provides through global research and is helpless, given the large volume of instrumentsinternational investor base. quoting it. Every bank has checks and balances inWhat according to you are the skills which a place to ensure that such events don‖t occur but itcompany looks in an MBA graduate for the role of seems that this is not enough. It is important toan Equity Analyst or a Sales/Trader profile? maintain trust with customers and banks have now started to invest more internally to ensure thatBesides technical skills (which is a given for this ―compliance‖ is maintained. People interacting withindustry), the most important skill we look for is clients/customers are more held responsible now forcommunication skills, which is crucial to this industry their actions – and regulators have started taking– you might have the best idea but if you cannot strict action for any misuse. However, I still believePratibimb | October 2012 | 25
  26. 26. there is a long way to go for the industry in thisregard.During recession, some of the major Wall Streetbanks were accused of selling junk investments toinvestors. Do you think there is a high need forethical concern in this Industry?In an ideal world, everybody will be ethical but Ibelieve it is more of a human nature and notrestricted to a particular firm, industry or region. As ageneral rule the industry right now works on theprinciple of “Buyer Beware” and there is a lot of effortbeing put in to essentially change this thoughtprocess. As industry participants realize that theirmalicious actions are detrimental to both themselvesand the industry at large, we can expect people to―become more ethical‖. One quick and effectivesolution (agreed by regulators) is strict penalties (bothfinancial and professional) through restitution andprohibition.How was your experience at TAPMI and how is ithelping you in your current role?I had worked with ING Vysya Bank for two yearsbefore joining TAPMI in 2006 which helped meunderstand the importance of several subjects thatwere being taught in the classroom. Some of thesubjects which we studied are still very relevant suchas Corporate finance, valuation, Security analysis andPortfolio Management etc. However, the industry ischanging rapidly and it is also important to keeponeself up to date. Working on real like case studiesof contemporary events (like a small summerinternship project every month in your syllabus) issomething that will be helpful to a finance student oftoday.Pratibimb | October 2012 | 26
  27. 27. Disha 2012 The Learning Experience by Chandrakumar N, TAPMIThey say everyman is a sum total of his experiences. If As the chief guest for inauguration, we had Padmathat were the case, I have to be immensely thankful Vibhushan Dr. M. S. Valiathan, Ex-vice chancellor offor Disha which has enriched me with a wide array of Manipal University and National Research professormeaningful experiences. I went through almost every of the Government of India.emotional state - from jubilance to depression, pride What are the personal lessons for me from Disha?to disappointment, and stress to relaxation. Iinteracted with illustrious men and experienced the 1. The higher the stature of a person, the humblerproud feeling that one gets when all things go exactly he is.as planned. This was something I found out after talking to nSo what am I talking about? number of executives who held roles from assistant manager to president. Of all the people I interactedI am talking about Disha, the Annual HR conclave held with during Disha, the most humble was Dr. M. S.in T. A. Pai Management Institute, Manipal. It is the Valiathan. He is a Padma Vibhushan recipient,second biggest HR conclave in India and is held in the National research professor and has been a part ofsecond week of September. For Disha, we call senior planning commission for many 5 year plans. I, alonglevel HR executives from various companies for a with a member from HRFORUM, had gone to inviteround of panel discussions and guest lectures in our him for the inauguration ceremony. Before thecampus. It is a platform where our students get a meeting we were intimidated and were a littlechance to interact with corporate honchos from big nervous as we had never interacted with a person ofcompanies and the executives meet the students from his stature. But we were pleasantly surprised to meetTAPMI and get a feel of our college and its activities. the kind and wise gentleman. Instead of the allottedThis year Disha was held on September 8th and 9th. I 10 minutes, we ended up spending an hour discussingam Chandrakumar N., a second year PGDM student in various problems of the country, what needs to beTAPMI. I am a part of the HRFORUM, the committee done to make it a better place and the steps to bewhich makes it all happen and I was the Event co- taken to improve the Indian Education System. I stillordinator for Disha 2012. cherish the pleasant intellectual conversation we hadWho all were the guests of Disha? with Dr. Valiathan. The other guests who came for Disha were equally humble and easy to talk to. TheseThis year we had the following guests coming to Disha guests held roles like President, Vice President, Head2012. HR etc. But interactions with each of them were likePratibimb | October 2012 | 27
  28. 28. the ones with our college faculty. They were friendly, Before we actually started the work for Disha, we tookcordial and pleasant. all the members for a nice dinner outing. We played some team building games, interacted and got to 2. A team needs to gel well before any results can know each other well. This and many more of such be expected of them. informal meetings led to a good rapport among the members. Once the team members are comfortableTuckmans stages of group development says that with each other, it is much easier to work with them.every team that is formed will have to go through thefollowing 4 stages for it to grow, to face up to This accustom phase can be used to bypass the Stormchallenges, to tackle problems, to find solutions, to stage, which is usually the unpleasant stage whereplan work, and to deliver results. team members confront each other and differences are resolved. So you don‖t have to tolerate the team members because now, they are your friends. 3. Democratic way of leadership is not the only way. According to a HBR Article, Leadership that gets Results by Daniel Goleman, there are 6 types of leadershipI think one stage, the storm stage can be replaced bya better one, accustom.So it can also be The article goes on to say that, the most effective leader is one who is well versed in all these types of leaderships and uses each of them like an expert mechanic uses different type of tools for different situations. Before Disha I knew only one way and that was democratic. For every decision I used to get a group consensus and carry forward. But during the course of Disha I have picked up a few more styles of leadership; pacesetting, affiliative and authoritative being the prominent ones. Team Disha comprised of 18 people. Each of them highly motivated, intelligent and smart individuals but none same as the other. Each of them had their own reasons to be a part of the team, their own ways of thinking, and their own definitions of success. So how do you deal with each of them? You deal with them individually. For motivated smart members who need a friendlyPratibimb | October 2012 | 28
  29. 29. figure who just needs to tell them what needs to be Referencesdone, I used to delegate the entire responsibility. Forhumble hard working members who needed a little  http://en.wikipedia.org/wiki/ Tuckmans_stages_of_group_developmentmore guidance in their task, I put on the role of acoach. For members who just needed to know their  Daniel Goleman, Leadership That Gets results,share of work, I put on the role of an authoritative Harvard Business Review, April 2000figure.Though these tools which I have acquired may still beblunt, nevertheless they are priceless and willdefinitely come in handy in the future. 4. It helps to have a lot of friendsDuring Disha, I had a lot of help from non-membersof Disha whether they are my classmates or faculty orthe support staff. Having a friendly relation withpeople definitely pays off. There were many instanceswhere the support staff of TAPMI voluntarily cameand gave suggestions for improving Disha. And therewere always friends and well-wishers who were thereto help whenever I needed it.On the whole, I would say that Disha has taught memany things. Some lessons about operationalefficiency, some about human behaviour and someabout me as a person.Pratibimb | October 2012 | 29
  30. 30. Horizon 2012 Money Matters by Nishith Maheshwari, TAPMIIt is said that the people you encounter while at increase the financial knowledge of the batch. InUniversity are among the most diverse and interesting order to achieve the same the Finance Forum isyou will ever meet and that probably you will stay in responsible for conducting numerous eventstouch with a number of them for many years throughout the year. The flagship event of Financeafterwards. I discovered the same at TAPMI, with its Forum is its annual conclave - ―HORIZON‖. A studentunique college system of numerous student run run initiative, the conclave aims to bring togethercommittees responsible for different functions of finance professionals from investment banks,college. Being a member of the Finance Forum from commercial banks, mutual fund houses, credit ratingmy first year; gave me a strong sense of being part of agencies, business houses as well as academicians,something big and also provided a platform through alumni, and students to discuss recent trends andwhich you meet and work along with a lot of people, emerging issues in the industry, the challenges andmany of which will become your friends for life. opportunities they present and the way ahead. It also acts as a forum for budding entrepreneurs andThe main objective of the Finance Forum is to students in the field of finance to interact withPratibimb | October 2012 | 30

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