Marketing Ganga

Author: Shabbir Chunawalla

  • HackerOne

    On HackerOne  platform, there are 1500 hackers. They alert the reputed target companies about the bugs in their system and how they can fix them. It gets 20 per cent communication and a bounty paid for its service. HackerOne was started by Prins and Abma with Merijn  Terheggen, a Dutch entrepreneur. Facebook’s Rice is the fourth co-founder who joined them when they fixed a bug in Facebook after writing to Sandberg. Cyber-criminals examine the private and government systems for their vulnerabilities and then breaking. Companies pay HackerOne and other such cyber-security firms quote a price to fix the bugs.

    At times it is in millions. At times, it is nil. HackerOne has fixed around 9000 bugs and earned $ 3 million as revenues. Some companies have started their official bounty programmes for ethical hackers, say an airline giving them flier miles.

  • Mobile Advertising – A Component of Digital Advertising

    There is tremendous growth in digital ad spends — in 2014 it grew at 45 per cent. It touched a revenue of Rs 43.5 billion in 2014, as against a revenue of Rs 30.1 billion in 2013. In total digital advertising, the share of mobile advertising also grew from 10 per cent to 14 percent in 2014. It touched Rs 5.2 billion. Thus most of the money is still spent on search engines, display ads on sites and social media. In total mobile advertising, the in-app advertising has a share of 40 per cent. Next comes the share of mobile web ads at 25 per cent and movie, video, TV, SMS, MMS ads at 35 per cent.

    Just now the need is to make the content available on all kinds of devices. However, an individual content player has to focus on a niche. Bennet Coleman offers a range of contents through apps such as the TOI, ET, Newspoint, Navbharat Times, Maharashtra Times, Navgujarat Samay and so on. It runs online publications such as HuffingtonPost and AdAge India. They are into foreign tie ups. The content strategy of online players is different,e.g. Buzzfeed, Scoopwhoop, The Quint, The News Minute.Apart from technology, we shuold have differntiated content.TV apps have mostly ‘catch up’ content, rather than original content.

    All types of ads are being tried on mobiles — from display ads to fully rich experience of a video. It is yet to be seen which format of the ad and which model best suits the mobile space.Media plans are made on the basis of the content and traffic.

    Online publishers do not get lucrative ad rates as compared to the traditional media., despite their huge reach. Mobile is still a part of the web, and not an independent medium. The cost of the banner ads on popular mobile sites are Rs 200 to Rs 400 per impression or CPM. It comes down to Rs 70 to Rs 150 in case of new sites or second rung apps/sites.The cost of running a video ranges from Rs2-3 per view for popular sites. The payment is made only if the full video is watched without skipping. One can buy a fixed presence on monthly basis with sites having high traffic,e.g. NDTV. It costs rs 3 lac to Rs 4 lac a month. A roadblock for a day may cost Rs2-3 lac.

    Ads should not be placed conspicuously to avoid alianation of the viewer. Vdopia runs its ads when the content is being played — in the heart of the content.E-commerce companies put contextual advertising.

  • Carbon-based Solar Cells

    Typical solar cells use expensive rare earth minerals, e.g. silicon-bases solar cells. Researchers at Stanford University have come up with an alternative method of creating solar cells made entirely of carbon. It is thin film prototype made of carbon materials that can be coated from solution. In future, flexible carbon solar cells could be coated on the surface of buildings, on windows or on cars to generate electricity. It can lower manufacturing costs. In the solar cells, the electrodes are made of graphene consisting carbon nanotubes which are 10,000 times narrower than a human hair. These have extraordinary electrical conductivity and light absorption properties. Carbon prototypes absorbs near infra-red wave lengths of light, contributing to a laboratory efficiency of one per cent, much lower than commercially available solar cells. We have a long way to go.

  • Compulsory License (CL)

    In 2005, India signed the WTO-TRIPS agreement and moved from a process to a product patent system for pharma products. Process patents allowed pharma companies between 1970 and 2004 to produce low-cost generic versions of patented medicines. After 2005, the MNCs with patents were allowed marketing exclusively for 20 years from the date of filing the patent application. This in other words prevents generic drug makers to produce low-cost versions for 20 years. However, in line with WTO-TRIPS agreement, the Indian Patent Act incorporates CL or Compulsory Licence. A CL is issued by the government to authorize procurement, import, manufacture and marketing of an affordable generic version of an expensive patent medicine on the payment of royalty to the patent holder. The aim is to make medicines affordable.

    Sorafenib tosylate ( Nexavar ) is an anti-cancer drug patented by Bayer.It is used for kidney and liver cancer. Bayer priced it at Rs. 2.8 lac per patient per month. Natco made an application to the Patent Controller for a CL. In 2010, Cipla entered the market launching soratenib tosylate at a price of Rs. 30,000 per patient per month. Natco’s application for CL was made in 2011. It proposed to offer the drug at Rs. 8800 per person per month. Natco received the first CL in March, 2012 against a payment of 6 per cent royalty of on sales to Bayer. Cipla dropped the price to Rs. 6840.Bayer sued Cipla for infringement. Natco’s case was challenged by Bayer before the Intellectual Property Appellate Board (IPAB). Bayer had made the drug available to a small percentage of patients which did not meet the requirements of public interest.The IPAB upheld Natco’s claim for CL and dismissed Bayer’s petition.

  • Post-Grant Opposition to Patents

    Pfizer’s sunitinib (Sutent ), anti-cancer drug for kidney cancer costs roughly Rs. 1.96 lac for a 45-days treatment, or Rs.4375 per 25 mg.capsule. Pfizer holds the patent. Cipla, Mumbai filed post-grant opposition. The Delhi Patent Office has revoked a patent granted in 2007 to Pfizer. Pfizer has the liberty to appeal the decision before the Intellectual Property Appellate Board. The ground for revocation was a lack of inventive step.

    Both pre-grant and post-grant opposition to a patent are key in developing countries as they work to open up generic competition.

    Previously, Chennai Patent office had revoked Roche’s patent of HIV drug valganciclovir ( Valcyte ) following post-grant applications by patient groups. Valcyte was priced at Rs.1023 per tablet, while the generic competitions were priced at Rs. 245 per tablet.

  • Sec 2(1) and Sec 3(d) of Indian Patent Act

    Sec 2(1) of the Indian Patent Act of 2005 requires companies to prove that new forms of known compounds offer enhanced therapeutic efficacy in order to be granted a patent.

    Sec 3(d) strikes a balance between innovation and access and recognises true invention at the same time, checks attempts at repetitive patenting or extension of patent terms on frivolous grounds.

    Beta crystalline form of imatinib mesylate failed both these tests of invention and patentability as provided under sec 2(1) and sec 3(d) of the Indian Patent Act.

  • Getting Branding Right

    According to Stephen Norman, Senior VP, Global Marketing and Communication, Renault, one can get the product right by good research and brilliant engineering and execution but it is very tough to get the branding right. Making a brand fit the local market is much more difficult. What we need is good amount of research. There is a lot of subjectivity too.

  • Matrix Structure

    In matrix structure, there is solid reporting line to one boss and dotted line relationship with one or more other bosses. The matrix structure is strangely ambiguous to those accustomed to simple linear reporting lines. In MNCs, the local business heads report directly to global business heads and have a dotted relationship with the country head whose role is limited to governance. In decenralised matrix, business heads report to the country head and have dotted relationships abroad. There could be a mix of the two. There could be an implicit matrix, and one has to handle the ambiguity. In global companies, dual reporting is the norm. One has to strike the right balance between the global and local. The matrix is a dynamic, living thing. A certain level of maturity is expected in a person to get into a multiple reporting format. It is all about collaboration, transparency and communication.

    A CEO in a matrix structure is less empowered. In appointments too, he has to consult his global business heads. To implement global strategies, MNCs prefer a matrix structure. It provides talented employees greater chances of advancement. The matrix structure is common to hotel industry. The property is an individual entity has its own functional structure. The General Manager is their boss. However, they maintain a dotted line relationship with their counterparts in the regional headquarters.

  • Amish Tripathi Trilogy

    Amish Tripathi wrote a novel The Immortals of Meluha in 2010. He is an IIM alumus. He sampled his first chapter at all bookstores and made a movie trailer for the book and uploaded it on YouTube. In 2011, he wrote The Secret of the Nagas. Together, both the novels have sold over a million copies. Karan Johar has acquired the rights to adapt The Immortals for the big screen. This has inspired many MBAs to become novelists. His third book is Vayuputras.

  • Community Radio Station

    NGOs, SHGs registered under the Societies Act, Not-for-Profit ( NPU ) Society or a Trust working for communities in remote areas can apply for a Community Radio Station by logging on to http://www. cronlineindia.net. The details can be had by logging on to www.mib.nic.in. Community Radio Station is a short-range non-commercial radio to empower rural and marginalized communities, a cultural repository of local folk music, songs, tales, legends, customs, habits etc, a participative tool for local people for development purposes and provides a platform to unheard voices.