Hey You! Hey You! Brand Characters or Brand Ambassadors

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“Brand is just a perception, and perception will match reality over time. Sometimes it will be ahead, other times it will be behind. But brand is simply a collective impression some have about a product.”

- Elon Musk

Brands faze in and out of our lives. Only some leave an impression too deep to erase from our memory. Notice when you pick up an Amul product off the shelf in a grocery store, what do you look for? Or rather what catches your eye first? We don’t go looking for packing that says Amul but instead our mind automatically focuses on a polka-dot-frock girl on the cover. Such is the power of that one brand character who has been entertaining us for half a century now. Since the 1960s, this adorable brand character has not only entertained us but also drawn our attention towards social issues.

Image Courtesy: freedigitalphotos.net, Stuart Miles

‘Prevent malaria, Spread amularia’ shows the Amul girl arm wrestling with a malaria-spreading mosquito in an attempt to throw light on the deadly disease Malaria while campaigning for Amul butter. Would that be more or less convincing if a real person had done that? One of the advantages of being a brand character was that the Amul girl got away with numerous political satires. Here’s another example but of a brand ambassador. Batting maestro Sachin Ramesh Tendulkar , who sits on the pinnacle of world cricket, promoted the brand MRF for almost 10 years and we would be absolutely correct in saying that most of us still associate MRF with Tendulkar. When Sachin started using the Adidas cricket equipment after his long-term association with MRF ended, we certainly missed the familiar logo ‘MRF – Genius’. For cricket crazy fans, MRF would rather be Sachin’s bat and not a Tyre Company. Probably this is how a superstar brand ambassador popularizes the brand.

Moving from examples to the ideology, we wonder what goes inside the mind of a marketer when deciding upon a Brand Ambassador or a Brand Character. When does a brand go for real people and do they necessarily opt for celebrities or superstars only? When does a brand come up with an entirely new invention of an animated character? Where do we see the pug in Hutch ads – a brand ambassador or a brand character? We are only trying to show you our perspective here. Companies go for well-known personalities to leverage on their stardom. They essentially look for someone who relates to their product like a perfect embodiment. Ambassadors are not only good leaders and speakers, they are technologically well up-to-date too in today’s 4G generation. They are credible and trustworthy. While choosing a brand ambassador one has to go with the existing choices whereas in a brand character one works the reverse way. There is a freedom to design a character cut to the product. A brand ambassador provides credibility to the brand by its action and persona; on the other hand a brand character can be modified depending upon the whims and fancies of the brand. And while we may not be able to tell which one – brand ambassador or brand character, we can certainly say that the Hutch Puppy is essentially a mix of both.

What happens when a star falters and his credibility reflects on the brand? We illustrate with an example here. Nike in the preceding year had two of its major brand ambassadors default big time. Lance Armstrong the face of Nike in cycling and Tiger Woods the face of Nike in Golf. Nike scraped the contract with Lance upon his doping revelation whereas Tiger Woods continues to be the face of Nike in Golf even after his adultery. The reason simply being Nike being a sports performance brand drew a line between personal and professional arena. In the case of Tiger Woods, the player gave a public apology and soon resumed his number one world title too, for a short while. Seeing the credentials of the player, Nike went ahead to make one of the best golf commercials till date ‘No Cup is Safe’.

To further come to a consensus let’s look at more examples. Remember Ronald MacDonald , plays the clown of, err what was the name of that fast food chain? Or the battery powered Bunny for energizer batteries and then there is the iconic Michelin Tire Man made out of the product itself and widely considered as the benchmark when it comes to developing a brand. The mascot even featured in a couple of Hollywood flicks one of which is Ghostbusters (1984). On the other hand peppy Parineeti Chopra endorses all pep up brands like Kurkure, Nivea, Maaza, Spinz, WeChat, Pantene and Mahindra. Ranbir Kapoor, the young heartthrob of the nation, endorses Pepsi, Panasonic, Tata DoCoMo, Nissan and the Spanish football club FC Barcelona.

There was a really intriguing article put forward by John Yong titled ‘If Cartoon Characters Were Brand Ambassadors’ in which he writes about the work of Romania-based graphic designers Stefan Asafti in ‘Imagination, Cartoons & Brands’. Asafti has quipped, how would great brands look like if cartoon characters inspired them? Look at the ingenious images and go all nostalgic.

Coming back, Airtel has never used brand characters and Vodafone is heavily bent on them. Airtel advertisements went viral with ‘har ek friend zaruri hota hai’ and ‘Jo tera hai who mera hai’. These advertisements took people from ordinary walks of life as brand ambassadors and focused on ‘friendship’ to create an emotional connect with the youth. Airtel’s digital TV commercials casted real life celebrity couple Saifeena to exhibit more genuineness of the brand. Vodafone on the other hand struck the chords in the hearts of millions by inventing the ZooZoos for IPL season 2. Though strategies of both the companies converted into sales, let us also have a look at the cost structure. ZooZoo’s, it cost 3 crore to shoot the entire ad campaign as compared to Airtel’s Saifeena who took back home 6 crore for a 10 second commercial. That’s a whopping difference.

Now, this is a quick one for you to think. ‘Appy Fizz’ - first thing that comes to your mind. Quick, I said. Is it the image of brand ambassador Saif Ali Khan or brand character Appy Fizz? Undoubtedly to us, it is the bottle mascot jumping up and down with over enthusiasm. Here is an ambassador and a character working together to promote the drink, and each individual in the audience could have a different pick. We wonder if one alone could have solely created the impact of the two together. Imagine Mr. Appy Fizz but no Saif Ali Khan. Well there isn’t much to imagine. Saif Ali Khan only started hanging out with Appy Fizz in the year 2012. Incidentally Parle agro, the parent company of Appy Fizz, had never used a Bollywood actor for any of its brand before. Before Saif, Appy Fizz operated alone and displayed its wit and humor to a group of four teenagers. Then came the cousin Grappo Fizz in the picture. The tagline went from one to two cool drinks to hang out with. And finally the entry of Saif brought in a cooler quotient. Appy Fizz is a youth drink and Saif a youth icon. The response in return turned out to be great.

So, to sum it up, Brand ambassador and brand characters are two sides of a coin. It’s at the discretion of the brand manager to ensure a positive outcome no matter which side the coin reveals. He can even try for a hung coin and hope that the risk pays off. Both have their pros and cons, which vary depending upon the brand and its target audience. A kid’s product is more likely to be associated and depicted by a brand character and chances are you won’t fail until and unless the product is really not up to the mark. But you wouldn’t dare to use the same for a Hair dye and sit back anticipating a good profit margin. In the very end it boils down to the fact that market is a casino where you are trying your luck every day, sometimes it works, sometimes it doesn’t. No magical formula to guarantee you success. So as the saying goes, “In marketing I've seen only one strategy that can't miss - and that is to market to your best customers first, your best prospects second and the rest of the world last” (John Romero), so operate at your own risk and go all creative with Brand Ambassadors and Brand Characters. We love to watch them all.

This article has been authored by Nalini Singh and Pranjal Parihar from IIFT Kolkata

10 Must Have Apps for a Student

Students spend more than half of the day on their phones, playing games, doing chit-chat using Snapchat, WhatsApp and all other sort of messaging apps. As a result, most of us are criticized of staying glued to our phones and not making the most of our time. 

Well, that's true! We are just whiling away our time. But, if you believe that you can do a lot more with your mobile phones, then these apps are tailor made for you.
Let's Start,

1) News in Shorts : It's a must have app if you don't have time to go through the lengthy newspapers but still want to stay updated. This app provides you with the best articles around and that also in just 60 words. Amazing! Isn't it? 

2) Quiz Up: Well, I know you may or may not agree with me on this one, but, if you want to try your hands in quizzing this is an app which provides you with the best opportunity you can get. Try your minds and fingers on different topics ranging from Film quizzes to quizzes on chemistry. You will find abstract of abstract topics in this app and well, the fun of beating someone by just few points is just not explainable. And remember these lines from Samuel Beckett "Ever Tried. Ever Failed. No matter. Try Again. Fail Again. Fail Better."

3) Mathway: Oh! i remember all those Maths assignments that are just pain in you know what. I was never able to complete them without wasting so much of time that i just hated them. Try Mathway—the mobile application that will guide you step-by-step while you search for algebra, geometry, or any other math solution. Enter your task into the application, and check if your solution is the same with one offered.

4) Studious:  remember a free Android app cannot and will not make you smarter. What It can do, however, is to help you to appear a little more studious, thanks in large part to its feature that silences your phone in class. After all, we all know that teachers don't appreciate the phone ringing in the class especially if you are among those having all sort of idiotic ringtones that would make the whole class laugh. This app also allows you to save your class schedule and class locations and track assignments and tests.

5) Ted: Well, I am not talking about the ass kicking and talking stuff toy here. I am talking about the TEDX app which has people from around the world sharing their bit of knowledge with people all over. Watch them, learn from them and get inspired. The range of topics the Ted talk’s covers are really intriguing.

6) Khan Academy: Well, if you have not heard of this, then I would request you that the first thing you do after reading this blog is to look through this website. It is more than just an online encyclopedia. You can learn and re-learn a variety of topics from here. If you are not able to get something in the class, try khan academy, you may find it easier to comprehend. 

7) Exam Time: Well we all know we want to have that extra edge over our fellow classmates and for those like me, want to have that sufficient knowledge to at least be assured of clearing the exams respectfully. Exam Time allows you to create online Mind Maps, Flashcards, Online Notes and Quizzes. All of these online study tools are designed to help you improve your learning and prepare for exams. Never before has it been easier to create your online study resources and share them with your classmates. Plus all your notes are stored in one place. Happy Studying. 

8) Dictionary.com: This app is for all those who just love to read. They just love it. But, what if you come across a word that you don't know meaning of? This app provides you with all the help that you need. This is also helpful for those who just want to try their hands on writing. 

9) RealCalc Scientific calculator:  I don't think i should explain the use of this particular app., but, what else it does that now you will have an extra excuse to use your phone during all those class test and quizzes that you want to master. Well, i am not promoting the use of unfair means in any way. So, you are at your own and you have to decide what's best for you.

10) Cam Scanner: This is app is a life saver(money saver). Well, a lot of time before exams we run to "Jugaadufy" class notes and other notes. What you can do is at the place of getting them photo copied, you can use cam scanner which would convert them into PDF format and you can easily read them on your laptop or tablets, given you have one. The only NO NO is that you have sufficient control over yourself so that you can actually study from your laptop or tablets.   

This is just a list of apps that I have tried and tested. The list is never ending and I would advise you to start from somewhere (here) and if you find them useful move onto new apps. Make the most out of the resources you have. Students today are more dependent on technology, which is true in every sense and we should look towards optimizing our time and resources. 

P.S. Hard work has no substitute.  

SWOT Analysis for Hector Beverages – Tzinga

Strength

o   The name of the brand is very catchy.

o   The product is available in variants well liked and suited to the tastes of the Indian consumer. These are Tropical Trip, Mango Strawberry and Lemon Mint for Tzinga.

o   The association of the company with a ‘Cool’ image helps in its brands including Tzinga imbibe some of that coolness into its market presence.

o    Hector Beverages have priced these drinks competitively. 200mL pack of Tzinga is price at Rs20. This will ensure competition to its rivals like Red Bull which is priced at  Rs95 for a 250mL can.

o   The management behind the company are well educated coming from some of the best Universities in the world.

o   The packaging is attractive giving a reason to the consumer to go for it.

 Weaknesses

o   Limited brand recall- Tzinga has not been able to register itself in the minds of the consumer.

o   Brand awareness- Hector beverages have not invested a lot on advertising. As a result even though they have a great product competitively priced, the average consumer is not aware of the brand when he goes to the super store

o   Even in supermarkets, Tzinga has less retail shelf space. Compared to other brands which are prominently placed, Tzinga is usually in the lower shelves out of display.

o   Availability is the product is not as widespread as some of the other products.

  Opportunities

o   The Food market in India is $65bn. Out of this, $2.2bn is the beverage market. The energy market takes around Rs.700crore from this market. Though the size is small as of now, the energy drinks market shows great potential for growth in the future. Currently the market is growing at 20% every year.

o   The product can be marketed as something that keeps you up even when you have deadlines to meet. That is, it can be a substitute for coffee for those who don’t like coffee but have it just because they have deadlines to meet.

o   The market is currently dominated by just one brand. Red Bull commands over 80% of the market. There is immense scope for competition.

 Threats

o   There are other players coming up as well. These include Monster, Gatorade and others. Tzinga will have to compete intensely and set itself apart in order to make its presence felt in the Indian market.

o   Hector Beverages in general have their presence in and around Delhi. While their products may be available in other metros as well, there is a special focus on Delhi. This would need to change if the company wants give Red bull a run for its money.

o   There have been reports of death related to excessive caffeine from energy drinks around the world. Tzinga needs to guard itself from such reports.

Effect of US on the Global Economy

The world economies are cross linked because of the globalization that has happened all over the world. Moreover America is at the nucleus of Globalization and any change to its economy has a direct effect to the world economy. The recovery of US from 2008 crisis is now hampering the world economies at different levels.

US accounts for 8.56% of world total exports, but it’s not the exports that we should be concerned about , it’s the imports that are the worrying factors. US is the largest importer in the world and now its import have come down significantly which is attributed to the fact that it has discovered rich reserves of shale gas. US was before heavily dependent on energy resources coming from other countries but this discovery has made it self-sufficient. Hence , the fund that has been freed by this is being invested back in the US to give thrust to the local manufacturing industries.
A 1 percent point pickup in US GDP growth typically meant a 0.4 point spillover for the rest of the world. So, another major reason leading to the worldwide slowdown is attributed to the fact that US FED is withdrawing the monetary stimulus on accounts of picking up of the US economy and as a result the exchange rates have been hampered all over the world.  FII investors are also withdrawing money from the emerging markets now as a result.

Strengthening of US equity markets would result in greater investments in US and in return shielding it from currency rate fluctuations. Another side of the coin is , India and US share a healthy trade relationship  and if the demand would increase in US this would mean increase in India’s export and if America recovers it would create a whole lot of job opportunities. This is would depreciate the current account deficit of India.  Also, with time if the domestic demand is met by domestic production in US then it would reduce its dependence on foreign markets which would result in favorable Return on total assets.
Domestic firms rather than going for acquisitions abroad would now look to invest money and capital in the US economy which would result in increased FDI inflow in the country. Well all these things also depend upon the type of policies that are being drafted by the government is US.
 

The conclusion that comes out is even if the situation worldwide is not at its best but one thing is sure that it would not lead to other parallel crisis. 

“QE TAPERING : Is Indian Rupee Doomed ?”

The year 2013 was a historic one as the Indian rupee went Rs 68.80 against the US dollar, it also witnessed the single biggest fall in value of INR at 256 paisa against the reserve currency of the world. The Indian economy came unscathed from 2008 financial crisis but since then it has been spiraling down in terms of the value of INR which has come down drastically from its peak values of Rs. 38.80 for a USD in Feb. 2008.  This depreciation has accounted to many factors like policy paralysis on government front, a widening current account deficit, strict investment norms etc. But the factor that tops it all is tapering worries of Quantitative easing by US government.

Quantitative easing is a fiscal stimulus measure taken by the central bank of a country involving purchase of distressed assets in the market for injecting liquidity into the economy and breathing life into the otherwise soft demand conditions. The US government carried out a series of quantitative programs to revive the economy from the sub-prime crisis of 2008 and as a result it ended up creating excess liquidity into the financial systems all over the world.

The 2008 crisis was itself a unstable mortgage bubble and now this quantitative easing has resulted into an enormous investment bubble, which depicts that the US economy is on its way up. This improvement has led to the Fed considering ceasing the fiscal stimulus provided by these QE programs. The reverse of QE which is QE tapering is the suction of liquidity from the market by withdrawing from the purchase of assets by selling them once the economy is out of danger.

It’s not healthy for Indian economy as the Indian market is relatively less developed markets which offer a higher return on the investments as compared to western markets with near zero levels of interest rates and still anemic growth. Now, this suction of liquidity from the market would result in unsustainable stream of investments and the improving US economy would make investors to withdraw money from the emerging markets and put it back into the US. 

While the Indian rupee has taken a nose dive , the Indian share market have been reaching the new highs , which is a aftermath of reassuring Finance minister and appointment of new RBI governor. But, the state of stock market is very critical and foreign investors can any time put their money in the stock exchange and can withdraw as soon as possible which would result in the stock market crashing down.   

It’s not that the Indian economy is in the doldrums, but  we should look it in a way that the US economy has grown more than the Indian economy which has resulted in increase in the value USD against INR. Still, it’s not a good sign if a currency depreciates but it’s just a value it’s not the exact indicator of a country’s progress. Even if we put the New rupee price at 100INR = 1NINR then still there would be more effort which would e put into to earn the new rupee. We should look towards a stable recovery and not should focus on the numbers only. 

Union Budget 2014

UNION BUDGET: 

India witnessed the first Union Budget under the Modi rule on 10^th July which was proposed by the finance minister Mr. Arun Jaitely. A balanced approach can be seen in the budget; it neither disappointed nor did it fulfill all the promises made by the “ache din aaenge” campaign. Some of the key highlights of the budget are:

1. A sum of 7060 crore is provided for the project of developing “one hundred Smart Cities.This shows that the government has a futuristic outlook and wants inclusive growth.
2. 500 crore provided for setting up 5 more IITs in the Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala. Also, 5 new IIMs introduced in the States of HP, Punjab, Bihar, Odisha and Rajasthan. A good move where this would certainly boost the education sector.
3. Excise duty on cigarettes increased to 72%. Not a very well thought move as the maximum amount of tobacco usage base is of bheedis.
4. 100 crore provided for the training of sports women and men for forthcoming Asian games which provides the necessary boost for the sportspersons of India.
5.  A War Memorial is planned to come up at Princess Park, India Gate. Rs. 100 crore has been kept aside for the same. A brave move to set aside money for a memorial as it will greatly add to the aesthetic value of New Delhi as a world destination.
6.  FDI in insurance and defense increased to 49% will surely increase the competitive spirit in the market with better goods and services.
7.  A sum of 1000 crore against 500 crore of Chindambaram, to meet requirement for “One Rank One Pension” reinventing people’s faith in the defense.
8. The housing loan rebate is increased from Rs. 1.5 lakh to 2lakh, which is a clear indication for the public to invest in new properties and houses.
9.  Tax exemption limit for small and marginal, and senior tax payers has been changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens, no tax for income up to Rs 3 lakh per annum. This will surely boost the middle income strata of the Indian Economy.
10.  A target of 8 lakh crore has been set for agriculture credit during 2014-15 which would clearly benefit the farmers.  But it remains to be seen if such claims are met by the Modi Government.
11. 100 crore provided for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses. Apprehensive about this move, as implementing virtual classrooms in the existing education structure especially in public sector side is pretty difficult.
12. Sum of 150 crores on a scheme to increase the safety of women in large cities. A much need move due to the current situation but the government was unclear as to how it would be implemented.
13. 1000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojna” for assured irrigation. This will provide relief to the farmers who depend a lot on the monsoon.

About Telecom Industry

Telecom Industry:

Telecommunication is communication over long distance by means of technology involving various types of electromagnetic signals.

 Phone, instant messaging, texting, emailing, etc. are all forms of telecommunications.

The Global Telecom Industry:

The telecom industry worldwide is set to reach around $2.3 trillion. Estimates suggest that the industry would grow to $2.7 trillion by 2017. This represents a CAGR of 2.5%.

Below is a list of the 10 largest Telecom companies in the world and facts and figures related to them:

1.       AT&T- Valued at $75.5bn, AT&T is the largest telecom company in the world. Based out of Dallas, US, the company generated $128bn of revenues and a profit of $18bn in 2013. The CEO is Randall Stephenson and the company is looking for a growth that beats the industry average. On May 18, 2014, AT&T announced it had agreed to purchase DirecTV. In the deal, which has been approved by boards of both companies, DirecTV stockholders will receive $95 a share in cash and stock, valuing the deal at $48.5 billion. Including assumed debt, the total purchase price is about $67.1 billion. The deal was aimed at increasing AT&T's market share in the pay-TV sector; its existing U-Verse brand has modest market share (5.7 million users compared to DirecTV's 20 million US customers as of 2014) and operates in only 22 states.

2.       China Mobile – Valued at $55bn, China Mobile is the 2^nd largest telecom company in the world. The state-owned telecommunications company is the leading mobile phone service supplier in China and claims to have the world's largest mobile network and world's largest mobile customer base.

3.       Verizon – Valued at $53bn, Verizon is the third largest telecom company in the world. Based out of New York in the US and with LowellMcAdam as its chairman and CEO, Verizon has consistently given some great results. With 120bn in revenue and 23 bn in profit it stands as one of the largest profit producing companies in the world

4.       Vodafone – Valued at $40bn, Vodafone is the 4^th largest Telecom company in the world. Their CEO Vittorio Colao and they are based in London, United Kingdom.  Their annual revenue was 43bn pounds and their profits was 439million pounds.

The Indian Scenario:

The Indian telecom industry is a $39bn (2013 figures). World over, telecom services have been recognized the as an important tool for socio-economic development of a nation. It is most important service needed for rapid growth and modernization of various sectors of the economy. India is currently the world’s second-largest telecommunications market and has registered phenomenal growth in the past few years. The reasons for growth of the telecom sector in India are reform measures by the Government of India, a private sector which is very active, and wireless technology.

The National Telecom Policy 2012 (NTP-2012) was announced to increase public good by facilitating secure, reliable and affordable telecommunication and broadband services in India. This along with the free flow of foreign direct investment (FDI) has made the telecommunications sector one of the most competitive and a top five employing sector in the country. The telecommunications sector attracted foreign investment to the tune of US$ 14bn in the period April 2000 to March 2014.

India’s GSM operators added 2.58 million subscribers from rural India in April 2014, taking the total to 297.16m. Also, Cellular Operators Authority of India’s (COAI) data implies that the total GSM subscriber base increased by 5 million in April 2014 making the total GSM subscriber base to 726.90m customers.

The COAI data also reports that telecom provider Airtel provided the most number of customers in April, about 1million new subscribers with Vodafone and Idea Cellular following.

It has been forecasted by Ericsson that India's subscriber base will grow from 795m in 2013 to 1.145 billion subscribers by 2020.

Investment that have taken place in the Telecom industry:

The telecom sector in India is growing rapidly and due to this, there have been large investments recently. Some of the ones worth noting are as follows:

• Aircel, to expand its retail business in India, plans to set up 200 more XPRESS stores in the country, with a view  to taking the total number of these franchisee  stores to 500 by mid 2015.
• Reliance Jio Infocomm has signed deals with Tower Vision and Ascend Telecom Infrastructure to share their towers. Ascend Telecom has 4,250 while Tower Vision has a portfolio of 8,400 towers. These deals will help the telecom unit of Reliance Industries to roll out its high speed data and voice services sooner and at a lower price bracket across India.
• Vodafone India has expanded  its Project Samridhi to Karnal in Haryana, with a view to boost sales and provide employment opportunity to the rural women in the region. As per the project, Vodafone has appointed a hundred women, to sell prepaid recharges and e-top-ups.
• Reliance Communications (RCom) has entered into inter-circle roaming partnerships with Tata Teleservices Ltd and Aircel  to offer 3G services on a all-India basis. This will enable Reliance Com’s GSM customers to access 3G services while on roaming even outside its home network.
• Tata Communications has entered into strategic partnerships with  Interxion in Germany and Austria,  the Australian company NEXTDC, and Pacific Link Telecom in Malaysia. These partnerships will help the company to expand data centre footprints in newer geographies.
• Vodafone Business Services (VBS) launched  video conferencing service for enterprises to offer an experience of best in the world virtual face-to-face-like interaction with various participants whenever you like, anywhere. The service offers seamless conferencing experience and does not depend on device and network limits.

With the recent emphasis on telecom, it is well set to become one of the fastest growers in the market.

About E-Commerce

E-commerce:

E-Commerce is the buying and selling of products and services via the internet. It is short for electronic commerce.

E-commerce can be classified into :

B2B: Business to Business – This involves buying and selling of products between 2 businesses.

An example would be Alibaba.com which sells products in bulk. Another example would be TCS, which provides services to small medium and large businesses all over the world. In this case, the final consumer is neither of the 2 businesses. The customer utilizes the services or products of the seller to retail to the consumer in case of a product or to make its business more efficient in case of a service.

 B2C: Business to Consumer – This involves the buying or selling of products between a retailer and the final consumer.

 An example would be flipkart.com in case of products or makemytrip.com in case of services. The consumer buys from these e commerce sites as per his needs and is the final destination for the product or service.

C2C: Consumer to consumer – This involves the buying or selling of goods or services between 2 consumers. They are mostly resellers .

Examples would include olx.in or quickr.in or ebay.in. Here a consumer who has already bought a product for consumption resells it either new or after using it (second-hand). The difference between B2C and C2C is that the seller in case of C2C is not a licensed retailer. The retailer sends the good to the first consumer and the first consumer sells it to the second consumer.

Size of Global Industry

There were an estimated 2 billion user in 2011 and this number was set to grow to 3 billion by 2015. These figures point towards the role e-commerce would have to play in the time to come. The B2B e-commerce industry alone generated around $400 billion to $600 billion in 2010 which is set to grow to between $700bn and $950bn by 2015. 

Financial Ratios

Financial ratio analysis is required to understand business financial position and financial performance. Major usage of these analysis are :

1)      Taking decisions related to investment,

2)      Comparing 2 business when they are of different size

3)      To detail out profitability, efficiency and quality of business from different perspectives

4)      To keep a tab of changes taking place in the business in due course of time

These ratios have been broadly categorized into 6 categories :

1)      Liquidity Measurement Ratios

2)      Profitability Indicator Ratios

3)      Debt Ratios

4)      Operating Performance Ratios

5)      Cash Flow Indicator Ratios

6)      Investment Valuation Ratios

Credits - Vineet Kumar(IIFT-K 2014-16)

Inventory Control

Techniques in Inventory Control :

1 ABC Analysis (Always Better Control)
2.VED Analysis (Vital, Essential, Desirable)
3.HML Analysis (High, Medium, Low)
4.FSN Analysis (Fast, Slow moving and Non-moving)
5.SDE Analysis (Scarce, Difficult, Easy)

Just In Time (J.I.T)

Just In Time :

What is it?
An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

About JIT :

JIT is a philosophy of continuous improvement in which non-value-adding activities (or wastes) are identified and removed for the purposes of:

• Reducing Cost
• Improving quality
• Improving performance
• Improving Delivery
• Adding Flexibility
• Increase innovativeness

JIT is not about automation.  JIT eliminates waste by providing the environment to perfect and simplify the processes.  JIT is a collection of techniques used to improve operations  It can also be a new production system that is used to produce goods or services.
The American Production and Inventory Control Society (APICS) has the following definition of JIT: 

"a philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity.  It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery and including all stages of conversion from raw material onward.  The primary elements include having only the required inventory when needed; to improve quality to zero defects; to reduce lead time by reducing setup times, queue lengths and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at minimum cost."

When the JIT principles are implemented successfully, significant competitive advantages are realized.  JIT principles can be applied to all parts of an organization:  order taking, purchasing, operations, distribution, sales, accounting, design, etc.

A good example would be a car manufacturer that operates with very low inventory levels, relying on their supply chain to deliver the parts they need to build cars. The parts needed to manufacture the cars do not arrive before nor after they are needed, rather they arrive just as they are needed. 

This inventory supply system represents a shift away from the older "just in case" strategy where producers carried large inventories in case higher demand had to be met.

Elimination of Waste:

JIT usually indentifies seven prominent types of waste to be eliminated:

• Waste from overproduction
• Waste of waiting/idle time
• Transportation waste
• Inventory waste
• Processing waste
• Waste of motion
• Waste from product defects.

Sources - Investopedia and inventorysolutions. 

Basel III

Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector. These measures aim to:
• Improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source
• Improve risk management and governance
• Strengthen banks' transparency and disclosures.
The reforms target:
• Bank-level, or microprudential, regulation, which will help raise the resilience of individual banking institutions to periods of stress.
• Macroprudential, system wide risks that can build up across the banking sector as well as the procyclical amplification of these risks over time.
• These two approaches to supervision are complementary as greater resilience at the individual bank level reduces the risk of system wide shocks.
The issue of capital adequacy and oversight has attained further importance in the wake of 2008 financial crisis.