According to Peckham, the users of a brand, like the contents of a leaky bucket are constantly dripping away, disappearing from the market in significant numbers, accounting perhaps for the loss of a fifth of the brand’s sale during the course of a year. Because of such losses, it becomes necessary for the marketer to attract new users to compensate for the deficit.
Month: December 2014
Hypermarket
Retail is an industry where it is all about detail. Hypermarkets around the world are always large boxes on cheap real estate, on the edge of big cities with good infrastructure where customers happen to come and shop at least once a week or once in 10 days. The consumer is prepared to buy food, apparel, and electronics, and put everything in the same trolley. This model is not applicable to India.
Hypermarkets in India will not be the scale of hypermarkets elsewhere in the world. They could be 55000 sq. feet size for tier II cities and 75000 sq. feet for tier I cities.
In smaller cities, they find large well-laid out store intimidating. As a brand, one can be considered premium or price sensitive. A crisp looking store is given elsewhere. It is not considered expensive. A hypermarket can lower the prices by subsidising the prices of food items from the margins of the non-food items. It is an efficient format.
Mickey Mouse Turned 86 in Nov, 2014
Mickey Mouse was conceived in a train journey. The Disneys ( Walt Disney and his wife ) were travelling from New York to Los Angelas. Oswald the Rabbit, the Disney creation was lost to his financial backers. The idea of a mouse was at the back of his mind. Though a mouse is a creature that scares, still itis a sympathetic character. He conjured up images of the mouse in red velvet paints. He was christened Mortimer but at the end of the journey in Los Angelas, he got his new name Mickey. Mortimer, to the mind of Lilian, Disney’s wife, was too pompous.
On November 18, 2014, Mickey turned 86. It had made its debut on November 18, 1928.
In 1955, Mickey Mouse made his debut on TV in the Mickey Mouse Club television show. Mickey became the first cartoon character to have a star on the Hollywood Walk of Fame on November 18, 1978 in honour of his %0th anniversary. He was given his own entry in the Encyclopaedia Britannica in 1934.
Link between Producer and Director : Line or Executive Producer
A line producer is the link between the producer and the director. He matches the financial needs and constraints of the producer to the creative requirements and compulsions of the director. He gets involved right from the scripting stage till the final print is handed over to the producer. He handles the day-to-day problems in the shoot. He looks after the payments of everyone except the actors, director, cinematographer and musicians. He charges anywhere between 5 and 10 percent of the film’s budget as his remuneration.For an ad films, he is paid between Rs. 10000 and Rs. 1 lac per day of the shoot. His work starts 10-15 days before the actual shoot. He is paid Rs. 10000 to Rs. 40000 per day for a TV serial. He masters the process of film making from very close quarters. It paves the way for being a full-fledged producer in future.
Sound Designer (SD) : His Contributions to Movies
Till the last century concluded, the sound was dubbed after the completion of the film. The stars were to dub the dialogues. The background scores were retrofitted and mixed later. All this was the job of the sound designer. In the new millennium, Lagan was first to use the sync sound. It recorded dialogues, and sounds while shooting live. In other words, the film is shot indoors in a sound proof studio and outdoors by eliminating the external sound. Farhan’s DCH followed in sync. Gowarikar who directed Lagaan used sync in Swades and Jodha Akbar.The sound designer manages dubbing when the actors have to recreate the dialogues after a time lag. The sound designer is available on the sets and outdoors when the film is shot in sync. Non-human sounds are shot by foley. Thus the final sound-track is a mix of dubbing tracks, background music and foley. The volumes of different sounds are managed at the appropriate levels. In sync films, there is additional process of sound cleaning — removing all unnecessary sounds and refining the desired ones. The whole sound designing takes 3-6 months by a team of 6-8 people headed by the sound designer. In practice, the film’s copy comes to them barely two months before the releas. They are short of time.
Cyber Attacks : Need to Shield
In 2010, the critical infrastructure of nuclear processing facilities at Stuxnet, Iran were assulted by a cyber attack that introduce a virus, thus affecting the nuclear centrifuges. It brought to light the vulnerability of the control systems to the cyber attack. This led the countries to revisit the protection of their critical infrastructure. In2012, there was a cyber attack on Saudi Arabia dubbed Shamoon. There was one on South Korea in 2013 called Dark Seoul.
In November, 2014, another instance of cyber attack was noticed. The victim was Sony Entertain.ment Corporation, Culver City, California. The employees confronted the images of grinning red skulls on their computer screens.The hackers called them the Guardians of Peace or GOP. They stole voluminous data, maybe up to 100 terabytes. The hard disks were wiped out. The stole data appeared on Internet. It was the private data of the employees and the Hollywood moguls and actors. Even the unreleased films were siphoned off. The data of the corporates dealing with Sony too came in the public domain.Sony was about to release a movie Interview based on the story of an assassination attempt on a North Korean leader.The premiere was cancelled as the theatres feared attack.
Cyber attacks are difficult to attribute. It can be carried out by anyone with an internet-enabled computer. One who attacks can be an individual or a group.It could be a state actor or state itself. The attackers cover their tracks by using proxy machines and false IP addresses. They plant false clues inside their malware to mislead the investigators.
Companies will have to be very very careful about their cyber security, esp. the data and personal details of their customers. The Government must put in place the legal measures and enabling policies.
What does a Brand Manager Do ?
A brand manager performs the following functions :
- A brand manager maintains a brand’s character, image and integrity.
- He puts brands that deliver value in the service of the consumers.
- He assures the consumers that they can trust the brand they are buying.
- A brand manager has to ensure the success of the brand.
- There is a battle for resources in the organisation. A brand manager advocates his brand’s requirements of resources effectively. He makes use of consumer feedback to claim for resources.
- Brand managers have to be within a framework. But they should know when to expand the boundaries of this framework and cross it if necessary in view of the market conditions.
- Brand managers have to work in collaboration with other departments.
- Brand management is slowly evolving into category management. A brand manger takes on an inside-the-company viewpoint and seeks to maximise the brand’s share, position and equity through mangerial effort. In category management, an outside view is taken. Category managers take care of a number of brands within that category. They have a strong influence in pricing, promotion, advertising and all marketing and sales activities of their category. They have considerable work at distribution channel level.
- Brand management provides power to the sales management and customer teams serving influential customers.
- In brand management, there is a challenge to balance the shrt-term with the long-term goals.
- It is important to have consistency in brand identity.
Merry X’mas !
So much festivity in the air.The Yuletide spirit right in our midst ! The churches and mid-night masses ! Christmas carols ! Cakes and confectionery ! Turkeys ! Wishing everybody ! Santa and his gifts ! Christmas shopping ! While we celebrate, let us spare a thought for our less fortunate brothers and sisters ! Bring a smile to their faces ! That will be true celebration ! Merry X’mas to you all ! It’s a big marketing occasion ! It’s great festival ! It brings out the best in us.
And soon the New Year will arrive.We will leave behind a year passed by. And lots of memories ! I wish you a happy and prosperous new year ahead.
Keep reading the write ups, especially penned for you ! These will make you understand what marketing is all about.
Aircraft Purchasing
Aircraft is an expensive product. The a average list price of a brand new Airbus A 320 ( in 2011 ) is $ 85 million. Boeing 737-800 is listed for $84.4 million. Aircrafts, hoverever, do not sell at the listed price. There is bargaining, if the order is large and after negotiations, discounts from 10 to 40 per cent are offered. All depends on the type of aircraft ordered, delivery dates requested, the engines selected and the interior options specified.
At the time of signing the deal to buy the aircraft, only one percent of the cost of the aircraft is paid by the airline . They pay small percentages of the cost to the manufacturer at pre-determined intervals before the delivery date.
The deal is is financed by the banks by way of long-term loans at pre-determined rates.
The role of the leasing companies such as GECAS (General Electric group ) and ILFC ( International Large Finance Corporation, of AIG group ) is important. They buy the aircraft from the manufacturer and then lease them to the customers. This happens prior to delivery.In India, the leasing deal is concluded before delivery. The leasing company pays the manufacturer. The ownership papers are given to the airline. These are then transmitted to the leasing company. The airline can sell an aircraft to the leasing company at a higher price and make a profit.
The aircraft engine may not be bought from the aircraft manufacturer. There are separate deals with engine manufacturers. There are per hour basis deals with engine companies. Engines can be swapped around the aircrafts.
The lease agreement factors in the profit made by the airline. The lower the profit, the lower the lease rental. The average lease rental on a brand new A 320 or 737-800 ranges between $ 500,000-750,000 per month.There is no depreciating asset on airline’s books The lease payments are operational expense.
Artists, Studios and J J School of Arts
The concept of a studio has come to us from the Western world. It came to India through the Britishers. It is the space where the artist or a sculptor works. It has the facility to allow enough sunlight in. A studio has stools of different heights, isles, stands, facilities for colour or earthen work, tools and equipment. There are set of brushes to do the oil, water and acrylic paintings. An established painter has at least a set of 100 brushes. There are palettes of different sizes. Though it is difficult to have a studio, it is the dream of every artist. It is the identity of the artist. He is the king of this space. His creativity is exercised in this space.
J J School of Arts was set up in 1878 with studios. It has six spacious studios including the dean’s studio on the first floor. The dimensions are appox. 30×30 feet or 30×60 feet. There are arched wndows to receive light from the north. Their height is 15-20 feet. These can be opened-shut with srings easily. There are curtains to control the light. In the curriculum, tere are subjects like figure study, potrait, life painting. In the classrooms, the models were seated. The students were educated about the anatomy, perspective and tones with reference to the models. The seniors have nude study. These classrooms are closed. The restricted entry is indicated on the paper pasted on those closed doors. The models come from the poor strata of the society. They posed either on wooden planks or steps. They posed either sitting or standing. The background was made by coloured drapery. In front, the students are present in two semi-circles — the first semi-circle being of donkeys and the second of isles. The arrangement allows to accommodate more students in limited space. There are exhibits of stalwarts and past students on the walls. There is enough space do the paintings. To learn the subject of composition, there was a large long-wide table with benches by the side to seat. The smell of colours and linseed oil linger in the studios. There is a big rack to store portfolios in the colour. There are full big sized drawing boards and palettes of everywhere. The hurt caused by the drawing pins accidently fallen on the ground is a common experience. The dustbins have charcoal pieces, crusts of colours, exhausted colour tubes, rags and mops, pencil remnants and discarded paintings. There are basins outside the studios in the passage. The brushes can be cleaned here. These studios are at times converted into art galleries. Gorge Molecy designed the neo-Goethic architecture.