Jamnalal Bajaj Institute of Management Studies
ConVoyage Issue - October 2011
Cover Story : Indian Grand Prix - Sports Marketing Perspective
1. Indian Grand Prix - Sports Marketing Perspective
2. Book Review: Execution
3. The MECE Way
4. Case Study
5. Consulting Quiz
6. Consulting Fun
Indian Grand Prix 2011: A Sports Marketing Perspective Written by: Chaitanya Udhare (MMS -1) Come 28th October 2011 , the adrenaline will start pumping as the top Racers in the world fight it out in the First ever Indian Grand Prix to be held at the Buddha International Circuit, Noida. The event is expected to generate $170mn in revenue and also employ a staggering 10,000 people. Amongst all this hoopla surrounding the event the real challenge is to take advantage of all the action and drama to promote racing as a sports in India. In this article we look at what Indian Sports Industry can learn from the marketing perspective. But first let us get introduced to the concept of Sports Marketing. This is a fairly new concept in the Indian scenario. This field includes basically three things: 1) Advertising the sports associations like the AIFF, AIBA etc. 2) Use of sporting events, athletes, teams to promote a brand 3) Promotion of sports to the public. The Sports Marketing Industry in India is a $40bn industry and growing at a staggering 14%. The Commonwealth Games which were conducted in 2010, failed to create the hype required to generate interest for sports in India. The games were completely overshadowed by controversies and Indian sports industry was not able to cash in on the mega event. With the inaugural edition of the Indian Grand Prix set to kick off let us look at some marketing strategies adopted which can be replicated by other Sports in our country. Live view of International Personalities in action Lewis Hamilton is perhaps one the most famous personalities when it comes to Formula 1. The Bangalore crowd got to interact with him and watch him in action driving his McLaren Mercedes MP-4-23, the car that won him the 2008 championship. This will help in a big way to generate interest among the public in Formula 1 in India. Other sports can learn from this and invite brand personalities to promote the sports. Recently, the Argentinean Football team played a match in West Bengal where the crowds got to see their hero Messi live in action. Each
sport should look to cash in on the fame of International personalities. Also it is interesting to note in this context how Vodafone made use of ambush marketing with help of Lewis Hamilton and McLaren before the Indian Grand Prix whose title sponsor is Airtel.
Interaction with Domestic stars Narayan Karthikeyan and Karun Chandhok are two the most famous Indian names when it comes to Formula 1. The fame of Chandhok is being used to launch a Comparative motor vehicle show which will enable customers to choose the best car or bike via a comparative analysis. The public will be able to personally interact with him and the next time they see him in action they will narrate their experience with him and thus advertise our Domestic talent. Other sports can learn from this and keep promotional events wherein the general public can interact with Indian stars. Promoting Domestic events Alongside the Indian Grand Prix two races championships are scheduled at the Buddh International Circuit to support the race. Many Indian talents will get a chance to take part in these events. As these races will be held to support the main event there will be sizeable crowd who will watch them. People who have come from different places to watch the main event will try to make maximum use of their tour to watch racing. This will not only help promote the
sport but also get the public acquainted with the Indian Local Talent. Also Ferrari, McLaren and other teams will get a chance to judge them and possible even sign a couple of them if they are impressed. This will only motivate and incentive the racers to give in their best at the races. Such tactics can be adopted for various sports. If the Indian Sports Industry can apply some of these strategies then it will go a long way in generating interest for sports in India.
Book review on Execution Written by: Ajay Pai (MMS -1)
In the year 2000, 40 CEOs of the Top 200 Fortune 500 companies were let go. This is because sometimes even smart, highly regarded people fail to produce critical results. Results they promised to deliver. Larry Bossidy and Ram Charan believe this is fast becoming an epidemic due not to the volatility or unpredictability of the business environment, but to the direct consequence of the lack of execution. The thesis here is that execution – the real job of business leaders and the key discipline for success today – bridges the gap between what leader want to achieve and the ability of their organizations to deliver it.
Part I: Execution – The Fundamentals There are three critical points to understand: 1. Integral to strategy, execution is a discipline that prosecutes the three core processes of people, strategy, and operations with rigor, intensity, and depth. 2. It is the major responsibility of the business leader, who gets things done by taking responsibility of the business leader, who gets things done by taking charge of running the three core processes, people, strategy and operations (no delegation). 3. Execution must be a core element of the organization’s culture, embedded in the reward systems and in the norms of behaviour. These points are built on seven essential behaviors of leadership, an effective framework for cultural change, and having the right people in the right place.
must know their business have acquired a lot of knowledge, experience, and wisdom which they must pass on to the next generation of leaders directly influence the behavior of the organization and behaviors deliver results must change the beliefs that influence people’s behavior have the most important job of selecting and evaluating people
Though the judgment, experiences, and capabilities of people make the difference between success and failure, many leaders do not pay enough attention to the quality of this resource – the one thing under their control. Instead they pay more attention to budgeting, strategic planning, and financial monitoring, when they need to commit as much as 40 percent of their time and emotional energy to selecting, appraising and developing talent. Critical Point: Boards, CEOs, and senior executives place too much emphasis on education and intellectual qualities and neglect to determine how good a person is at getting things done.
Part II: Execution – The How If leaders model the right behavior, create a culture that rewards execution, and have a consistent system for getting the right people in the right jobs, the foundation is in place for operating and managing the people, strategy, and operations processes effectively. Bossidy and Charan stipulate that the people process is the most important, for people create strategy and translate strategy into operations. A robust process:
accurately/exhaustively evaluates individuals provides a framework for identifying and developing all levels and kinds of leadership is the basis of a strong succession plan
Most companies evaluate the jobs people do today instead of focusing on whether individuals can handle the responsibilities of tomorrow. This kind of framework must be built on:
linkage to the strategic plan/milestones (near, medium, and long terms) and operating target including specific financial targets
development of the leadership pipeline through continuous improvement decisions on what to do about non performers
Most companies have three major flaws in their budgeting/operations process: 1. The process does not provide for robust dialogue on the plan’s assumptions 2. The budget is built on desired results, but does not specify the actions that ensure those results 3. The process does not provide coaching opportunities for people to learn the whole business, nor does it develop the social structure for working together for a common cause Thus, an operating plan must include the programs the business is going to complete within one year:
product launches marketing plan sales plan manufacturing plan that stipulates production outputs production plan that improves efficiency to reach specified earnings, sales, margin, and cash flows
Note: An open debate on assumptions is a critical component. Debating the assumptions and making trade-offs build the business leadership capacities of all involved.
The MECE Way Written by: Nikhil Shenoy (MMS -1) Most of the Fortune 500 companies go to McKinsey & Co. when they face trouble. McKinsey has been a leading strategy consulting firm for a long time now and reasons for its success need to be scrutinized to understand the world of consulting. One thing which every McKinsey employee works on is MECE. Each and every piece of work done by a McKinsey employee should have MECE. So to understand how this consulting giant works it is critical to understand what MECE is and how it used. MECE stands for mutually exclusive collectively exhaustive. 1. Mutually Exclusive – All the information is available is clubbed into different categories such that there no overlap between categories. 2. Collectively Exhaustive - All the aspects of the problem are covered The steps involved in going about this are 1. Determine the issue at hand clearly Example- Selling widgets for a widget manufacturing firm 2. Find out the ways in which the main issue can be solved by listing down the major issues related to the main issue considered. Important point here is that these issues should be mutually exclusive. Overlapping issues can lead to cluttering which can hinder the clarity needed to crack the issue. Example
Changing the way we sell our widgets to retail outlets. Improving the way we market our widgets to consumers. Reducing the unit cost of our widgets.
Check whether any other issues can be added. The issues suggested should address the main issue completely. If any more issues come up then they should be checked for overlap. If overlap does not exist then add it as another major issue. 3. Add sub issues for the major issues stated. As the issues suggested are mutually exclusive any further issues which pop up will come under the major issues suggested.
Changing the way we sell our widgets to retail outlets. Improving the way we market our widgets to consumers. o Reengineering the production process to improve widget quality. Reducing the unit cost of our widgets. o Reengineering the production process to reduce unit cost.
A MECE tree diagram is used to understand the issue clearly. It is a way of graphically organizing information into categories which are mutually exclusive and collectively exhaustive. The diagram as a whole represents the problem at hand; each branch stemming from the starting node of the tree represents a major issue that needs to be considered; each branch stemming from one of these major issues represents a sub-issue that needs to be considered; and so on. The picture below is sample tree diagram.
The diagram shown above is basic in nature.Each sub issue may be further divided into sub issues leading to a very complex structure.After drawing the diagram a clear picture of the issues at hand comes forth. MECE structure can then be used to attack each and every sub issue.After cracking the sub issues then these may be used to integrate the solutions into one solution set addressing the major issue at hand.
CASE STUDY Attend the interview - mail your answers at email@example.com
Our client is an established food wholesaler that is trying to increase profitability
Management Consulting Case Interview Questions
1. The situation is that our client is a wholesaler of a variety of different food items. 2. The client has a steady stream of business and is already profitable, but is looking to unlock more profitability from its existing lines of business. 3. The question is: how can they best increase profitability from their existing businesses? The client is a leader in an established, mature industry
Industry Characteristics/Market Economics - Growing at the rate of GDP - Significant barriers to entry - No new competitors have entered the market in the last several years Client Characteristics - Client is currently the industry market share leader - Margins are good, but depend on product line - Offers a range of high-end and low-end food products - Consumers are high and low-end hotels and restaurants Competitive Dynamics - The dynamics (duopoly vs. fragmented industry) depend on the region, but there are key competitors in each region
The client's position in the year 2000 was that its sales came from Asia, Europe, and North America
1. What observations can be made from this graph? 2. What would you expect to happen in three years?
The client's position in the year 2000 is now shown side-by-side with its 2003 position
1. What has happened in the past three years? Why? 2. What are the implications for price-cost margins?
The client is trying to figure out which exogenous factor is driving the gross margins of its individual products If we have a graph with gross margin on the y-axis, what would go on the x-axis?
The client now wants to know how demand elasticity will affect the gross margins of its individual products What should the graph look like?
It turns out that demand elasticity and gross margin do not have the inverse linear relationship that we would expect
1. What observations can you make from this graph? 2. What should the clientâ€™s new strategy be in each of the four graph quadrants?
Quick Quiz Mail your answers at firstname.lastname@example.org
Connect: Tiger, Lion and Berkeley
Which Bank was the main funding partner for Ambani when he started out?
STAR in STAR network stands for?
Connect: Lakme, Hamam, ACC
What was formed under the banyan tree at Horniman Circle?
What is the e-Governance project of Andhra Pradesh Government called?
Citi Bank co-brands cards for which oil company?
Which leadership guru coined the term 'transformational leadership'?
What is the e-Governance project of Andhra Pradesh Government called?
Which Indian woman has appeared for the first time in the Forbes billionaires list?
Which company has launched its first ATM that dispenses gold and diamonds at Phoenix Mills, Mumbai?
Which was the first bank to raise savings bank interest rate to 6 % after RBI deregulated it?
Name the first woman President and CEO of IBM who will take over from Sam Palmisano
The Consulting Club -Enhancing Quality… Contact us- email@example.com
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